[Federal Register Volume 76, Number 211 (Tuesday, November 1, 2011)]
[Notices]
[Pages 67496-67498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-28123]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2012-1; Order No. 919]


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 Inbound Competitive Multi-Service 
Agreements with Foreign Postal Operators 1 agreement. This document 
invites public comments on the request and

[[Page 67497]]

addresses several related procedural steps.

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 17, 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 bilateral 
agreement for inbound competitive services with Australian Postal 
Corporation (Australia Post Agreement) that the Postal Service seeks to 
add to the Inbound Competitive Multi-Service Agreements 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, October 17, 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 Postal Service asserts 
that its filing demonstrates that the Australia Post 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. Notice at 3-4. Additionally, it contends that the Australia Post 
Agreement is functionally equivalent to the agreement filed in Docket 
No. CP2010-95. Id. at 3. In Order No. 840, the Commission approved the 
functionally equivalent Norway Post Agreement and the designation of 
the TNT agreement as the baseline agreement for functional equivalency 
analyses of the Inbound Competitive Multi-Service Agreement with 
Foreign Postal Operators 1 product.\2\
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    \2\ See Docket No. CP2011-69, Order Concerning an Additional 
Inbound Competitive Multi-Service Agreements with Foreign Postal 
Operators 1 Negotiated Service Agreement, September 7, 2011 (Order 
No. 840).
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    In support of its Notice, the Postal Service filed four attachments 
as follows:
     Attachment 1--a redacted copy of the Australia Post 
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 that 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.
    Australia Post Agreement. The Postal Service filed the instant 
agreement pursuant to 39 CFR 3015.5 and in accordance with Order No. 
546. The Australia Post Agreement covers the delivery of inbound Air 
Parcel Post (Air CP) and Express Mail Services (EMS). Id. at 3. The 
Postal Service states that the parties intend for the rates to become 
effective January 1, 2012, and to remain in effect for 2 years. Id. at 
4, Attachment 1 at 1. The Agreement may be terminated without cause 
with 30 days notice. Id. Attachment 1 at 6.
    Functional equivalence. The Postal Service contends that the 
Australia Post Agreement to deliver inbound Air CP and EMS in the 
United States is functionally equivalent to the agreement to deliver 
inbound Air CP and EMS in the TNT Agreement. Id. at 3. The Postal 
Service asserts that the Australia Post Agreement is similar in both 
products and cost characteristics to the TNT Agreement. Id. at 5. It 
states that the TNT Agreement includes similar terms and conditions, 
e.g., is an agreement with a foreign postal operator and conforms to a 
common description. Id. The Postal Service identifies differences that 
distinguish the instant agreement from the TNT Agreement. Id. at 5-7. 
These distinctions include different foreign postal operators, detailed 
content restrictions, customs inspection, intellectual property, co-
branding and licensing, joint business development initiatives, rate 
tables, development of Accounting Business Rules and other differences. 
Id.
    The Postal Service contends that the Australia Post Agreement and 
the TNT Agreement incorporate the same cost attributes and methodology 
and the relevant cost and market characteristics. Id. at 7. Despite 
some differences, the Postal Service asserts that the Australia Post 
Agreement is functionally equivalent to the TNT Agreement previously 
filed. Id.
    In its Notice, the Postal Service maintains that certain portions 
of the agreement, prices, and related financial information should 
remain under seal. Id. at 4, Attachment 4.
    The Postal Service concludes that the Australia Post Agreement 
complies with 39 U.S.C. 3633 and is functionally equivalent to the TNT 
Agreement. Id. at 7. Therefore, it requests that the Commission add the 
Australia Post 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. CP2012-1 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 October 31, 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. CP2012-1 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 October 31, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.


[[Page 67498]]


    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-28123 Filed 10-31-11; 8:45 am]
BILLING CODE 7710-FW-P