[Federal Register Volume 76, Number 165 (Thursday, August 25, 2011)]
[Notices]
[Pages 53160-53162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21690]


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POSTAL REGULATORY COMMISSION

[Docket No. R2011-6; Order No. 812]


Postal Service Rate Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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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: August 25, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link 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 August 12, 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 Postal Service's accession 
to the Expr[egrave]s Service Agreement, a multilateral agreement that 
covers the delivery of cross-border letters, flats, and small packets 
(LC/AO) items weighing up to 2 kilograms tendered as Expr[egrave]s 
Items and branded with the Common Logo. Notice at 1, Attachment 2.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
August 12, 2011 (Notice). See also Docket Nos. MC2010-35, R2010-5 
and R2010-6, 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 
(Order No. 549).
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    The Postal Service explains that the Expr[egrave]s Service 
Agreement establishes a delivery confirmation service for inbound 
Letter Post in the form of letters, flats, and small packets, which is 
currently in use for mailings between 24

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countries. Id. at 6. The agreement provides that the Expr[egrave]s 
Items service was developed as `` `a product with reliable, consistent 
delivery, track, & trace features and a common logo.' '' Id. at 6-7, 
Attachment 2 at 1 (footnote omitted). Article 12 of the Expr[egrave]s 
Service Agreement states that any postal operator that is a postal 
administration as interpreted by the Universal Postal Union (UPU) can 
accede to the agreement by executing a Deed of Accession and delivering 
it to the group's Steering Committee. Id. at 5-6.
    Related agreements. In Order No. 549, the Commission approved the 
Inbound 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). In Order No. 700, the 
Commission approved the HongKong Post Agreement. The Postal Service 
states that both the CPG and HongKong Post Agreements contain annexes 
which include a Small Packet with Delivery Scanning service. Notice at 
1-2. It maintains that the delivery confirmation service included in 
the Expr[egrave]s Service Agreement is functionally equivalent to the 
delivery confirmation service provided with the Small Packet with 
Delivery Scanning service that is included in the CPG Agreement. Id. at 
2. The Postal Service asserts that because the Expr[egrave]s Service 
Agreement delivery confirmation service is similar to the CPG Agreement 
scanning service, it should be included as a functionally equivalent 
agreement under the Inbound Market Dominant Multi-Service Agreements 
with Foreign Postal Operators 1 product established in Docket Nos. 
MC2010-35, R2010-5 and R2010-6. Id.
    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 UPU Acts for inbound Letter 
Post items. Id. at 1. In accordance with Article 12 of the 
Expr[egrave]s Service Agreement, the Postal Service's accession will 
become effective on the first day of the second month following 
approval by the Steering Committee. Id. at 5. The Postal Service states 
if the accession is approved during the month of August, it expects the 
effective date to be October 1, 2011. Id.
    In support of its Notice, the Postal Service filed three 
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;
     Attachment 2--a redacted copy of the Expr[egrave]s Service 
Agreement, including applicable annexes; and
     Attachment 3--redacted copies of documents related to the 
Postal Service's deed of accession, including notice and technical 
specifications.
    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., delivery confirmation service for letter-class flats, letters, 
and packets using a specific barcode, and incentive to improve mail 
processing efficiency for remuneration based on timely delivery and 
return of scans for Expr[egrave]s Items. Id. at 7-8.
    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 Nos. 549 and 
570 for the agreements in Docket Nos. R2010-5, R2010-6 and R2011-4. Id. 
at 10.
    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.\2\ 
Id. at 12-16. It asserts that the instant agreement fits within the 
Mail Classification Schedule language for the Inbound Market Dominant 
Multi-Service Agreements with Foreign Postal Operators 1 product. 
Additionally, it states that it includes similar terms and conditions, 
e.g., is with a foreign postal operator, incorporates similar 
attributes and methodology for delivery confirmation services, conforms 
to a common description, and applies to rates for letter-class items 
tendered from the postal operator's territory similar to the Small 
Packets with Delivery Scanning service included with the CPG and 
HongKong Post Agreements. Id. at 12-13.
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    \2\ The Postal Service states that because there is no 
``baseline agreement'' in the Inbound Market Dominant Multi-Service 
Agreements with Foreign Postal Operators 1 product, it has based its 
functional equivalency comparison primarily on the CPG Agreement 
since the CPG Agreement includes rates for ``Small Packet with 
Delivery Scanning'' and the TNT Agreement does not include rates for 
a service described as ``Global Confirmation Over 2 lbs.''
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    The Postal Service identifies specific terms that distinguish the 
instant agreement from the CPG Agreement. Id. at 13-15. These 
distinctions include an indefinite term, single service nature, 
multilateral scope, applicability to letter-class flats, letters, and 
packets, and other differences. 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 the fundamental service the Postal Service 
is offering.'' Id. at 16.
    In its Notice, the Postal Service maintains that certain portions 
of the agreement, prices, and related financial information should 
remain under seal. Id. at 16, Attachment 1.
    The Postal Service concludes that the Expr[egrave]s Service 
Agreement should be added as a functionally equivalent agreement under 
the Inbound Market Dominant Multi-Service Agreements with Foreign 
Postal Operators 1 product. Id. at 16.

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 August 25, 2011. The public portions of these filings can be 
accessed via the Commission's Web site (http://www.prc.gov).
    The Commission appoints Emmett Rand Costich to serve as Public 
Representative in this docket.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2011-6 to consider 
matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Emmett Rand Costich 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 August 25, 2011.

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    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-21690 Filed 8-24-11; 8:45 am]
BILLING CODE 7710-FW-P