[Federal Register Volume 76, Number 168 (Tuesday, August 30, 2011)]
[Notices]
[Pages 53982-53983]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22057]


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POSTAL REGULATORY COMMISSION

[Docket No. R2011-7; Order No. 818]


New Postal Product and Rate Adjustment

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 and Type 2 rate 
adjustment 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 30, 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 3010.40 et seq. that it has entered into an additional Inbound 
Market Dominant 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 Market 
Dominant Multi-Service Agreement with Foreign Postal Operators 1 
product.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
August 16, 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 Agreement, September 30, 2010 
(Order No. 549).
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    In Order No. 549, the Commission approved the Inbound Market 
Dominant Multi-Service Agreement with Foreign Postal Operators 1 
product and the 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, and the China Post 
Group--United States Postal Service Letter Post Bilateral Agreement 
(China Post 2010 Agreement). In Order No. 700, the Commission approved 
the functionally equivalent HongKong Post Agreement.\2\ The Postal 
Service asserts that the China Post 2011 Agreement is similar to the 
China Post 2010 Agreement, TNT Agreement, and the HongKong Post 
Agreement. The Postal Service requests that the China Post 2011 
Agreement be included within the Inbound Market Dominant Multi-

[[Page 53983]]

Service Agreement with Foreign Postal Operators 1 product. Notice at 2.
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    \2\ See Docket No. R2011-4, Order Approving Rate Adjustment for 
HongKong Post-United States Service Letter Post Bilateral Agreement 
Negotiated Service Agreement, March 18, 2011 (Order No. 700).
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    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 China Post 2011 
Agreement.
    China Post 2011 Agreement. The Postal Service filed the instant 
contract pursuant to 39 CFR 3010.40 et seq. The Postal Service states 
that the proposed inbound market dominant rates are intended to become 
effective on October 1, 2011 after the rates that are currently in 
effect under the China Post 2010 Agreement expires on September 30, 
2011. Id. at 3. 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 2 at 2. The 
agreement however, may be terminated by either party no less than 30 
days' written notice. Id. at 3. It states that public notice of the 
rates is provided through its filing at least 45 days before the 
proposed effective date. Notice at 3. The Postal Service and China Post 
Group, the postal operator for China, are parties to the agreement. The 
Postal Service relates that the agreement covers inbound Letter Post, 
in the form of letters, flats, small packets, and bags, and 
International Registered Mail service for Letter Post along with an 
ancillary service for delivery confirmation scanning for Letter Post 
small packets. Id. at 3-4.
    Requirements under part 3010. The Postal Service states that the 
China Post 2011 Agreement is expected to generate financial performance 
improvements including, e.g., delivery confirmation service, barcodes 
for delivery confirmation, sortations for routing, and service updates. 
It contends that these improvements should enhance mail efficiency and 
other functions for Letter Post items under the agreement. Id. at 5.
    The Postal Service asserts that the agreement should not cause 
unreasonable harm in the marketplace since it is unaware of any 
significant competition in this market. Id. at 5-6.
    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 
mailflows 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 700 for the agreements in Docket Nos. R2010-5, R2010-6, and 
R2011-4, respectively. Id. at 7.
    The Postal Service advances reasons why the agreement is 
functionally equivalent to the previously filed China Post 2010 
Agreement, TNT and HongKong Post Agreements and contains the same 
attributes and methodology. Id. at 8-10. It asserts that the instant 
agreement fits within the Mail Classification Schedule language for the 
Inbound Multi-Service Agreements with the Foreign Postal Operators 1 
product. Additionally, it states that the China Post 2011 Agreement 
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 9.
    The Postal Service identifies specific terms that distinguish the 
instant agreement from the three existing agreements. These 
distinctions include the term, purpose of the agreement, effective 
date, confidentiality terms, signatory, revision of product stream 
rates, detailed air conveyance charges, specifications for letters, 
related updates, and other changes. Id. at 10-12. 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 12.
    In its Notice, the Postal Service maintains that certain portions 
of the agreement, prices, and related financial information should 
remain under seal. Id. at 12; id. Attachment 1.
    The Postal Service concludes that the China Post 2011 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 13.

II. Notice of Filing

    Interested persons may submit comments on whether the Postal 
Service's filing in the captioned docket is consistent with the 
policies of 39 U.S.C. 3622 and 39 CFR part 3010.40. Comments are due no 
later than August 30, 2011.\3\ The public portions of these filings can 
be accessed via the Commission's Web site (http://www.prc.gov).
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    \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.
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    The Commission appoints James F. Callow to serve as Public 
Representative in this docket.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2011-7 to consider 
matters raised by the Postal Service's Notice.
    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 30, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-22057 Filed 8-29-11; 8:45 am]
BILLING CODE 7710-FW-P