[Federal Register Volume 76, Number 208 (Thursday, October 27, 2011)]
[Notices]
[Pages 66766-66767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-27814]


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POSTAL REGULATORY COMMISSION

[Docket No. R2012-2; Order No. 913]


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 include a bilateral agreement with Australia Post in the 
Inbound Market Dominant 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: October 27, 2011, 4:30 p.m. eastern time.

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 October 14, 2011, the Postal Service filed a notice, pursuant to 
39 CFR 3010.40 et seq., that it has entered into a bilateral agreement 
with Australian Postal Corporation (Australia Post), which it seeks to 
include in the Inbound Market Dominant Multi-Service Agreements with 
Foreign Postal Operators 1 product.\1\ The Australia Post Agreement 
establishes new rates for inbound letter post items in place of default 
Universal Postal Union rates, as well as an ancillary service for 
delivery confirmation scanning for inbound letter post small packets. 
The Postal Service contends that the instant Agreement is functionally 
equivalent to several agreements included within the Inbound Market 
Dominant Multi-Service Agreement with Foreign Postal Operators 1 
product. Notice at 7-8.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
October 14, 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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    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 Australia Post 
Agreement.
    The Postal Service also provided a redacted version of the 
supporting financial documentation as a separate Excel file.
    Australia Post Agreement. The Postal Service filed the instant 
Agreement 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 January 1, 2012. Id. at 2. The Australia Post Agreement 
provides that it becomes effective after all regulatory approvals have 
been received, mutual notification of such approvals, and mutual

[[Page 66767]]

agreement on an effective date. Id. Attachment 2 at 1. The Agreement, 
however, may be terminated by either party on no less than 30 days' 
written notice. Id. at 3. The Postal Service and Australia Post, the 
postal operator for Australia, are parties to the Agreement. The 
portions of the Agreement at issue in this docket cover inbound letter 
post in the form of Letters, Flats, Small Packets, Registered Mail, and 
Small Packets with Delivery Scanning. Id. at 9.\2\
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    \2\ Notice at 5-6. The Agreement also covers competitive 
products such as M-Bags, parcels, and Express Mail. See Docket No. 
CP2012-1, Notice of United States Postal Service of Filing 
Functionally Equivalent Inbound Competitive Multi-Service Agreement 
with a Foreign Postal Operator, October 17, 2011.
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    Requirements under part 3010. The Postal Service states that the 
financial performance of the Australia Post Agreement is provided in 
the Excel file included with the filing. Notice at 1-2. It contends 
that improvements should enhance mail efficiency and other functions 
for letter post items under the Agreement. Id. at 4.
    The Postal Service asserts that the instant Agreement should not 
cause unreasonable harm in the marketplace since it is unaware of any 
significant competition in this market. Id. at 4-5.
    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 no special data collection plan 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 and establish a standing exemption to performance 
reporting requirements for all contracts added to the product Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal Operators. 
Id. at 6, 10.
    The Postal Service advances reasons why the Agreement is 
functionally equivalent to previously filed agreements.\3\ 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 Australian 
Post 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. 
Notice at 8.
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    \3\ Id. at 7-9. It cites the following orders: Order No. 549; 
Docket No. R2011-4, Order No. 700, Order Approving Rate Adjustment 
for HongKong Post--United States Postal Service Letter Post 
Bilateral Agreement Negotiated Service Agreement, March 18, 2011; 
Docket No. R2011-7, Order No. 871, Order Concerning an Additional 
Inbound Competitive Multi-Service Agreements with Foreign Postal 
Operators 1 Negotiated Service Agreement, September 23, 2011. See 
id. at 1 n.1.
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    The Postal Service identifies a specific term, Article 22, which 
refers to the duration of the Agreement, that distinguishes the instant 
Agreement from the existing China Post Agreement (Docket No. R2010-6). 
This distinction is the duration that the Agreement will be in effect. 
Id. at 8-9. The Postal Service contends that the instant Agreement is 
nonetheless functionally equivalent to existing agreements. 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 10; id. Attachment 1.
    The Postal Service concludes that the Australian Post Agreement 
should be added as a functionally equivalent agreement under the 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1 product. Notice at 10.

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 3010.40. Under rule 
3010.44(a)(5), comments on the Postal Service's filing would be due 
October 24, 2011, 10 days after the filing of the Postal Service's 
Notice. Recognizing that rates under the instant Agreement are 
scheduled to become effective January 1, 2012, the Commission will 
establish October 27, 2011 as the due date for comments. The public 
portions of these filings can be accessed via the Commission's Web site 
(http://www.prc.gov).
    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. R2012-2 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 October 27, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-27814 Filed 10-26-11; 8:45 am]
BILLING CODE 7710-FW-P