[Federal Register Volume 76, Number 29 (Friday, February 11, 2011)]
[Notices]
[Pages 7883-7884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3166]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket No. R2011-4; Order No. 663]


Postal Service Rate Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recently-filed Postal Service 
request concerning a Type 2 rate adjustment. This notice addresses 
procedural steps associated with this filing.

DATES: Comments are due: February 14, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link located in the banner at the top of the Commission's Web 
site (http://www.prc.gov) or by directly accessing the Commission's 
Filing Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section as the source for case-related information for advice 
on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (case-related information) or [email protected] 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION: 

I. Introduction
II. Notice of Filings
III. Ordering Paragraphs

I. Introduction

    On January 31, 2011, the Postal Service filed a notice pursuant to 
39 U.S.C. 3622(c)(10) and 39 CFR 3010.40 et seq. concerning a Type 2 
rate adjustment.\1\ The Notice concerns the inbound portion of a 
bilateral agreement with HongKong Post as a functionally equivalent 
agreement under the Inbound Multi-Service Agreements with Foreign 
Postal Operators 1 product in Docket Nos. MC2010-35, R2010-5 and R2010-
6.
---------------------------------------------------------------------------

    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
January 31, 2011 (Notice). See also PRC Order No. 549, Order Adding 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1 to the Market Dominant Product List and Approving 
Included Agreements, September 30, 2010.
---------------------------------------------------------------------------

    The Postal Service states that the Governors have authorized Type 2 
rate adjustments for negotiated service agreements in accordance with 
39 CFR 3010.40 et seq. that will result generally in more remunerative 
rates than the default rates set by the Universal Postal Union (UPU) 
Acts for inbound Letter Post items. Id. at 1. The agreement is 
scheduled to become effective April 1, 2011.\2\
---------------------------------------------------------------------------

    \2\ The Postal Service's Notice states inadvertently that the 
agreement's rates are intended to become effective April 1, 2010. 
Id. at 2. The bilateral agreement provides that the agreement 
becomes effective upon the Postal Service obtaining all regulatory 
approvals and notifying HongKong Post that all such approvals have 
been obtained. The date of notification is the effective date unless 
the parties agree to an alternative date. The agreement will 
continue in effect through the remainder of this calendar year. For 
the next calendar year, the parties will evaluate the agreement to 
determine if it will be modified. Id. Attachment 2.
---------------------------------------------------------------------------

    In support of its Notice the Postal Service filed two attachments 
as follows:
     Attachment 1--an application for non-public treatment of 
materials to maintain redacted portions of the agreement and supporting 
documents under seal; and
     Attachment 2--a redacted copy of the agreement.
    Related agreements. In Order No. 549, the Commission approved the 
Inbound

[[Page 7884]]

Market Dominant Multi-Service Agreements with Foreign Postal Operators 
1 product and two functionally equivalent agreements, Strategic 
Bilateral Agreement Between United States Postal Service and 
Koninklijke TNT Post BV and TNT Post Pakketservice Benelux BV (TNT 
Agreement), and the China Post Group--United States Postal Service 
Letter Post Bilateral Agreement (CPG) Agreement. The Postal Service and 
HongKong Post, the postal operator for Hong Kong, are parties to the 
instant agreement, which covers inbound Letter Post in the form of 
letters, flats, small packets, bags, and International Registered Mail 
service for Letter Post. Id. at 2-3. As in the current agreement with 
CPG in Docket No. R2010-6, the instant agreement also establishes an 
ancillary service for delivery confirmation scanning with Letter Post 
small packets. Id. at 3.
    The Postal Service states its filings comply with 39 CFR 3010.40 et 
seq. for the implementation of a negotiated service agreement. The 
Notice identifies performance attributes associated with the agreement, 
e.g., sortations for routing to the Postal Service's International 
Service Centers based on destination ZIP Codes, and delivery 
confirmation service for Letter Post small packets that includes 
separation of the pieces for efficiency in processing. Notice at 3-4.
    Under 39 CFR 3010.43, the Postal Service is required to submit a 
data collection plan. The Postal Service indicates that it intends to 
report information on this agreement through its Annual Compliance 
Report. While indicating its willingness to provide information on mail 
flows within the annual compliance review process, the Postal Service 
proposes that no special data collection plan be established for this 
agreement. With respect to performance measurement, it requests that 
the Commission exempt this agreement from separate reporting 
requirements under 39 CFR 3055.3 as determined in Order No. 549 for the 
agreements in Docket Nos. R2010-5 and R2010-6. Id. at 5-6.
    Functional equivalency. The Postal Service advances reasons why the 
agreement is functionally equivalent to the previously filed TNT and 
CPG agreements and contains the same attributes and methodology. Id. at 
7-9. It asserts that the instant agreement fits within the Mail 
Classification Schedule language for Inbound Multi-Service Agreements 
with the Foreign Postal Operators 1 product. Additionally, it states 
that it includes similar terms and conditions, e.g., is with a foreign 
postal operator, conforms to a common description, and relates to rates 
for Letter Post tendered from the postal operator's territory with 
accompanying ancillary services. Id. at 7-8.
    The Postal Service identifies specific terms that distinguish the 
instant agreement from the two existing agreements. Id. at 8-9. These 
include term, settlement charges and explanations, mail restrictions, 
and details on disclaimers, barcoding, and software. The Postal Service 
contends that the instant agreement is nonetheless functionally 
equivalent to existing agreements and ``[t]he Postal Service does not 
consider that the specified differences affect either the fundamental 
service the Postal Service is offering or the fundamental structure of 
the contracts.'' Id. at 9.
    In its Notice, the Postal Service maintains that certain portions 
of the agreement, prices, and related financial information should 
remain under seal. Id. at 1, Attachment 1.
    The Postal Service concludes that the inbound portion of the 
bilateral agreement with HongKong Post should be added as a 
functionally equivalent agreement under the Inbound Market Dominant 
Multi-Service Agreements with Foreign Postal Operators 1 product. Id. 
at 10.

II. Notice of Filings

    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 39 CFR part 3010.40. Comments are due no 
later than February 14, 2011.\3\ The public portions of these filings 
can be accessed via the Commission's Web site (http://www.prc.gov).
---------------------------------------------------------------------------

    \3\ To provide interested persons sufficient time to comment in 
these proceedings, the Commission finds it appropriate to waive the 
10-day comment period specified in 39 CFR 3010.44(a)(5). The modest 
extension will not prejudice either party to the agreement given the 
45 days' advance notice required for Type 2 rate adjustments.
---------------------------------------------------------------------------

    The Commission appoints Kenneth Moeller to serve as Public 
Representative in this docket.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2011-4 to consider 
matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Kenneth Moeller is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interests of the general public in this proceeding.
    3. Comments by interested persons in this proceeding are due no 
later than February 14, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-3166 Filed 2-10-11; 8:45 am]
BILLING CODE 7710-FW-P