[Federal Register Volume 74, Number 235 (Wednesday, December 9, 2009)]
[Notices]
[Pages 65169-65170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-29308]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-14 and CP2010-13; Order No. 351]


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 a bilateral agreement with Canada Post to the 
Competitive Product List. A related contract affects the delivery of 
inbound surface parcel post and Xpresspost. This notice addresses 
procedural steps associated with these filings.

DATES:  Comments are due: December 14, 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 Filing
III. Ordering Paragraphs

I. Introduction

    On November 25, 2009, the Postal Service filed a formal request 
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add the Canada 
Post-United States Postal Service Contractual Bilateral Agreement for 
Inbound Competitive Services (Bilateral Agreement) to the Competitive 
Product List.\1\ The Postal Service asserts that the Bilateral 
Agreement is a competitive product ``not of general applicability'' 
within the meaning of 39 U.S.C. 3632(b)(3). This Request has been 
assigned Docket No. MC2010-14.
    The Postal Service contemporaneously filed notice, pursuant to 39 
U.S.C. 3632(b)(3) and 39 CFR 3015.5, that the Governors have 
established prices and classifications not of general applicability for 
inbound competitive services as reflected in the Bilateral Agreement. 
More specifically, the Bilateral Agreement, which has been assigned 
Docket No. CP2010-13, governs the exchange of Inbound Parcel Post from 
Canada.
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    \1\ Request of United States Postal Service to Add Canada Post-
United States Postal Service Contractual Bilateral Agreement for 
Inbound Competitive Services to the Competitive Product List, and 
Notice of Filing (Under Seal) the Enabling Governors' Decision and 
Agreement, November 25, 2009 (Request).
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    Existing agreement. The Postal Service acknowledges an existing 
bilateral agreement with Canada Post for inbound competitive services, 
which is set to expire at the end of calendar year 2009. Id. at 3. The 
Postal Service asserts that the proposed MCS language in Docket No. 
MC2010-14 ``resembles the language'' for the existing bilateral 
agreement and that the differences ``reflect changes to certain 
operational details'' including a reclassification of Canada Post's 
``Xpresspost-USA'' product from a market dominant product to a 
competitive product. Id. The Commission reviewed and approved that 
bilateral agreement in Docket Nos. CP2009-9 and MC2009-8. The 
Commission had previously approved the ``Xpresspost-USA'' product as a 
market dominant product

[[Page 65170]]

in Docket No. MC2009-7.\2\Qualifying that approval, however, the 
Commission noted that ``Xpresspost exhibits characteristics of a 
competitive product.'' Id. at 7.
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    \2\ Docket No. MC2009-7,Order Concerning Bilateral Agreement 
with Canada Post for Inbound Market Dominant Services, December 31, 
2008.
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    Request. In support of its Request, the Postal Service filed the 
following materials: (1) A redacted version of the Governors' Decision 
including proposed Mail Classification Schedule (MCS) language, a 
management analysis of the Bilateral Agreement; certification of 
compliance with 39 U.S.C. 3633(a) and certification of the Governors' 
vote;\3\ (2) a Statement of Supporting Justification as required by 39 
CFR 3020.32;\4\ (3) a redacted version of the agreement\5\; and (4) an 
application for non-public treatment of pricing and supporting 
documents filed under seal.\6\ Request at 2.
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    \3\ Attachment 1 to the Request.
    \4\ Attachment 2 to the Request.
    \5\ Attachment 3 to the Request.
    \6\ Attachment 4 to the Request. The Postal Service erroneously 
noted in its Request that an Attachment 5 which contained the 
application for non-public treatment was filed. The application for 
non-public treatment is Attachment 4; there is no Attachment 5.
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    The Bilateral Agreement covers parcels arriving in the United 
States by surface transportation rather than air. Governors' Decision 
No. 09-16.\7\ The Bilateral Agreement also covers Xpresspost, a 
Canadian service for documents, packets, and light-weight packages. Id. 
The Bilateral Agreement allows Canada Post to tender surface parcels 
and Xpresspost to the Postal Service at negotiated prices rather than 
the default prices set by the Universal Postal Union. Id.
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    \7\ See Attachment 1 to the Request.
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    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, asserts that ``[t]he 
addition of the [Bilateral] Agreement as a competitive product will 
enable the Commission to verify that the agreement covers its 
attributable costs and enables competitive products, as a whole, to 
make a positive contribution to coverage of institutional costs.'' 
Request, Attachment 2. Joseph Moeller, Manager, Regulatory Reporting 
and Cost Analysis, Finance Department, certifies that the contract 
complies with 39 U.S.C. 3633(a). Id., Attachment 1. He observes that 
the Bilateral Agreement ``should not impair the ability of competitive 
products on the whole to cover an appropriate share of institutional 
costs.'' Id.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-14 and CP2010-13 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. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR 
3020 subpart B. Comments are due no later than December 14, 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. MC2010-14 and CP2010-13 
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 14, 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. E9-29308 Filed 12-8-09; 8:45 am]
BILLING CODE 7710-FW-S