[Federal Register Volume 74, Number 234 (Tuesday, December 8, 2009)]
[Notices]
[Pages 64771-64772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29224]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-12 and R2010-2; Order No. 346]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to add the Canada Post--United States Postal Service 
Contractual Bilateral Agreement for Inbound Market Dominant Services to 
the Market Dominant Product List. The Postal Service has also filed a 
related contract. This notice addresses procedural steps associated 
with these filings.

DATES: Comments are due: December 9, 2009.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Commenters who cannot submit their 
views electronically should contact the person identified in ``FOR 
FURTHER INFORMATION CONTACT'' by telephone for advice on alternatives 
to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 or [email protected].

SUPPLEMENTARY INFORMATION:
I. Introduction
II. Notice of Filings
III. Ordering Paragraphs

I. Introduction

    On November 19, 2009, the Postal Service filed a request pursuant 
to 39 U.S.C. 3622(c)(10) and 3642, and 39 CFR 3010.40 et seq. and 
3020.30 et seq. to add the Canada Post--United States Postal Service 
Contractual Bilateral Agreement for Inbound Market Dominant Services 
(Bilateral Agreement) to the Market Dominant Product List.\1\ This 
Request has been assigned Docket No. MC2010-12.
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    \1\ Request of the United States Postal Service to Add Canada 
Post--United States Postal Service Contractual Bilateral Agreement 
for Inbound Market Dominant Services to the Market Dominant Product 
List, Notice of Type 2 Rate Adjustment, and Notice of Filing 
Agreement (Under Seal), November 19, 2009, and United States Postal 
Service Notice of Erratum to Application for Non-Public Treatment, 
November 20, 2009 (Request).
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    The Postal Service contemporaneously filed notice that the 
Governors have authorized a Type 2 rate adjustment to establish rates 
for inbound market dominant services as reflected in the Bilateral 
Agreement.\2\ More specifically, the Bilateral Agreement, which has 
been assigned Docket No. R2010-2, governs the exchange of inbound air 
and surface letter post (LC/AO).\3\
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    \2\ Type 2 rate adjustments involve negotiated service 
agreements. See 39 CFR 3010.5.
    \3\ To elaborate, the Bilateral Agreement covers Letter Post, 
including letters, flats, packets, containers, and International 
Registered Mail service ancillary thereto. Request at 3-4.
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    Request. In support of its Request, the Postal Service filed the 
following materials: (1) Proposed Mail Classification Schedule (MCS) 
language; \4\ (2) a Statement of Supporting Justification as required 
by 39 CFR 3020.32; \5\ (3) a redacted version of the agreement; \6\ and 
(4) an application for non-public treatment of pricing and supporting 
documents filed under seal.\7\ Request at 2.
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    \4\ Attachment 1 to the Request.
    \5\ Attachment 2 to the Request.
    \6\ Attachment 3 to the Request.
    \7\ Attachment 4 to the Request.
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    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, reviews the factors 
of section 3622(c) and concludes, inter alia, that the revenues 
generated will cover the attributable costs of the services offered 
under the Bilateral Agreement; that the rates are preferable to default 
rates set by the Universal Postal Union; and that the rates represent a 
modest increase over those reflected in the existing bilateral 
agreement with Canada Post. Id., Attachment 2, at 2-3.
    In its Request, the Postal Service provides information responsive 
to part 3010, subpart D, of the Commission's rules. To that end, it 
addresses the requirements of section 3622(c)(10) as well as certain 
details of the negotiated service agreement. Id. at 2-7. The Postal 
Service asserts that the Bilateral Agreement satisfies all applicable 
statutory criteria. Id. at 6-8.
    The Postal Service filed much of the supporting materials, 
financial analysis, and specific Bilateral Agreement under seal. Id. at 
2. In its Request, the Postal Service maintains that the Bilateral 
Agreement and related financial information should remain under seal. 
Id.
    The Postal Service has an existing bilateral agreement with Canada 
Post which is set to expire December 31, 2009.\8\ Id. at 7. The instant 
Bilateral Agreement represents a 1-year extension of the existing 
agreement, with some modifications. The modifications include 
differences in specific operational details of the two agreements and 
the Postal Service's decision to classify Canada Post's ``Xpresspost-
USA'' as a competitive product instead of a market dominant product as 
in the existing bilateral agreement.\9\ The agreement states it has an 
effective date of January 1, 2010. Id. at 3. The Request states that 
the inbound

[[Page 64772]]

market dominant rates are scheduled to become effective on January 4, 
2010. Id.
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    \8\ The Postal Service maintains that the instant Bilateral 
Agreement is functionally comparable to the agreement in Docket Nos. 
MC2009-7 and R2009-1.
    \9\ The Postal Service states that it will present Xpresspost-
USA in a future filing with the Commission. Id. at 8, n.10.
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    The Postal Service urges the Commission to act promptly to add this 
product to the Market Dominant Product List to allow rates to be 
implemented under 39 CFR 3010.40. Id. at 9.

II. Notice of Filings

    Pursuant to 39 U.S.C. 3622 and 3642, the Commission establishes 
Docket Nos. MC2010-12 and R2010-2 for consideration of the Request 
pertaining to the proposed Canada Post--United States Postal Service 
Contractual Bilateral Agreement product and the related Bilateral 
Agreement, respectively. In keeping with practice, these dockets are 
addressed on a consolidated basis for purposes of this order; however, 
future filings should be made in the specific docket in which issues 
being addressed pertain.
    Interested persons may submit comments on whether the Postal 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3622 and 3642, 39 CFR part 3010.40, and 39 CFR 
3020 subpart B. The due date for comments is December 9, 2009. The 
public portions of these filings can be accessed via the Commission's 
Web site http://www.prc.gov.
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-12 and R2010-2 for 
consideration of the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in these proceedings.
    3. Comments by interested persons in these proceedings are due no 
later than December 9, 2009.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Judith M. Grady,
Acting Secretary.
[FR Doc. E9-29224 Filed 12-7-09; 8:45 am]
BILLING CODE 7710-FW-S