[Federal Register Volume 76, Number 168 (Tuesday, August 30, 2011)]
[Notices]
[Pages 53981-53982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22023]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2011-68; Order No. 817]


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 enter into an additional agreement under the ``Inbound 
Competitive Multi-Service Agreements with Foreign Postal Operators 1'' 
product offering. This document invites public comments on the request 
and addresses several related procedural steps.

DATES: Comments are due: August 29, 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 Filing
    III. Ordering Paragraphs

I. Introduction

    On August 16, 2011, the Postal Service filed a notice, pursuant to 
39 CFR 3015.5, that it has entered into an additional Inbound 
Competitive Multi-Service Agreements with Foreign Postal Operators 1 
agreement.\1\ The Notice concerns the inbound portion of a Multi-
Product Bilateral Agreement with China Post Group (China Post 2011 
Agreement) that the Postal Service seeks to add to the Inbound 
Competitive Multi-Service Agreement with Foreign Postal Operators 1 
product.
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    \1\ Notice of United States Postal Service of Filing 
Functionally Equivalent Inbound Competitive Multi-Service Agreement 
with a Foreign Postal Operator, August 16, 2011 (Notice). See also 
Docket Nos. MC2010-34 and CP2010-95, Order Adding Inbound 
Competitive Multi-Service Agreements with Foreign Postal Operators 1 
to the Competitive Product List and Approving Included Agreement, 
September 29, 2010 (Order No. 546).
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    In Order No. 546, the Commission approved the Inbound Competitive 
Multi-Service Agreement with Foreign Postal Operators 1 product and a 
functionally equivalent agreement, Koninklijke TNT Post BV and TNT Post 
Pakketservice Benelux BV (TNT Agreement). The Notice states that for 
other competitive products, the Commission has authorized functionally 
equivalent agreements to be included within the product, provided that 
they meet the requirements of 39 U.S.C. 3633.\2\ The Postal Service 
asserts that its filing demonstrates that the China Post 2011 Agreement 
fits within the Mail Classification Schedule (MCS) language in 
Governors' Decision No. 10-3 originally filed in Docket Nos. MC2010-34 
and CP2010-95. Additionally, it contends that the China Post 2011 
Agreement to deliver inbound Air Parcel Post (Air CP), Surface Parcel 
Post (Surface CP) and Express Mail Service (EMS) in the United States 
is functionally equivalent to the agreement to deliver inbound Air CP, 
Surface CP and EMS in the TNT Agreement. The Postal Service requests 
that the China Post 2011 Agreement be included within the Inbound 
Competitive Multi-Service Agreement with Foreign Postal Operators 1 
product. Id. at 3.
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    \2\ See Docket No. CP2009-50, Order Granting Clarification and 
Adding Global Expedited Package Services 2 to the Competitive 
Product List, August 28, 2009 (Order No. 290).
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    In support of its Notice, the Postal Service filed four attachments 
as follows:
     Attachment 1--a redacted copy of the China Post 2011 
Agreement;
     Attachment 2--a certified statement required by 39 CFR 
3015.5(c)(2);
     Attachment 3--a redacted copy of Governors' Decision No. 
10-3 which establishes prices and classifications for Inbound 
Competitive Multi-Service Agreements with Foreign Postal Operators 
agreements, proposed MCS language, formulas for prices, certification 
of the Governors' vote and certification of compliance with 39 
U.S.C.3633(a); and
     Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the agreement and supporting 
documents under seal.
    China Post 2011 Agreement. The Postal Service filed the instant 
contract pursuant to 39 CFR 3015.5 and in accordance with Order No. 
546. The Postal Service states that the competitive services in the 
China Post 2011 Agreement include rates for Air CP, Surface CP, and 
EMS, requires performance metrics for late delivery, late information 
transmission and missing delivery information and imposes associated 
penalties. Id. at 3. The Postal Service states it intends for the 
effective date for the rates for inbound Air CP, Surface CP and EMS to 
be January 1, 2012.\3\ Id. at 3, Attachment 1 at 2. It maintains that 
the rates in the agreement are intended to remain in

[[Page 53982]]

effect for one year from the effective date unless terminated sooner. 
Id. at 3-4. The China Post 2011 Agreement provides that it becomes 
effective after all regulatory approvals have been received, acceptance 
of specific business rules by both parties, notification to China Post, 
and mutual agreement on an effective date. Id. Attachment 1 at 2. It 
includes a table for intended effective dates applicable to settlement 
rates for specific products that is variable based on notification from 
the Postal Service. The agreement also provides that prior to 
expiration, the parties will determine whether to extend or modify the 
agreement. Id. at 7-8. The agreement may, however, be terminated by 
either party on not less than 30 days' written notice. Id. at 3.
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    \3\ Article 22 of the China Post 2011 Agreement provides that if 
an effective date for the settlement rates for EMS in the China Post 
2011 Agreement is established, the China Post-United States 
Bilateral Agreement that was approved in Docket Nos. MC2010-13 and 
CP2010-12 will terminate at 11:59 p.m. on the day prior to the 
effective date of the settlement rates for EMS in the China Post 
2011 Agreement. Id. at 3-4 n.6; id. Attachment 1 at 6.
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    Functional equivalence. The Postal Service asserts that the China 
Post 2011 Agreement is substantially similar to the inbound portion of 
the TNT Agreement based on the products being offered and the 
agreement's cost characteristics. Id. at 5. The Postal Service 
identifies differences that distinguish the instant agreement from the 
TNT Agreement. Id. at 5-8. These distinctions include different foreign 
postal operators, execution of a separate accord, customs inspection, 
termination results, confidentiality terms, effective date, rate 
tables, term, content restrictions, and other differences. Id.
    The Postal Service asserts that the China Post 2011 Agreement and 
the TNT Agreement incorporate the same cost attributes and methodology 
and the relevant cost and market characteristics are similar, if not 
the same, for the China Post 2011 Agreement and the TNT Agreement. Id. 
at 8. Despite some differences, the Postal Service asserts that the 
China Post 2011 Agreement is, ```functionally equivalent in all 
pertinent respects''' to the TNT Agreement previously filed. Id. 
(Footnote omitted.)
    In its Notice, the Postal Service maintains that certain portions 
of the agreement, prices, and related financial information should 
remain under seal. Id. at 2, Attachment 4.
    The Postal Service concludes that the China Post 2011 Agreement 
complies with 39 U.S.C. 3633 and is functionally equivalent to the TNT 
Agreement. Therefore, it requests that the Commission add the China 
Post 2011 Agreement to the Inbound Competitive Multi-Service Agreement 
with Foreign Postal Operators 1 product. Id. at 8.

II. Notice of Filing

    The Commission establishes Docket No. CP2011-68 for consideration 
of matters raised by the Postal Service's Notice.
    The Commission appoints James F. Callow to serve as Public 
Representative in this docket.
    Comments. Interested persons may submit comments on whether the 
Postal Service's filings in the captioned docket are consistent with 
the policies of 39 U.S.C. 3632, 3633 or 39 CFR part 3015. Comments are 
due no later than August 29, 2011. The public portions of this filing 
can be accessed via the Commission's Web site (http://www.prc.gov).

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2011-68 for 
consideration of the matters raised in this docket.
    2. Pursuant to 39 U.S.C. 505, James F. Callow 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 29, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-22023 Filed 8-29-11; 8:45 am]
BILLING CODE 7710-FW-P