[Federal Register Volume 76, Number 226 (Wednesday, November 23, 2011)]
[Notices]
[Pages 72452-72453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-30279]


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POSTAL REGULATORY COMMISSION

[Docket No. R2012-4; Order No. 981]


International Mail Contract

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 bilateral agreement with HongKong 
Post Group. This document invites public comments on the request and 
addresses several related procedural steps.

DATES: Comments are due: November 30, 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 November 14, 2011, the Postal Service filed a notice, pursuant 
to 39 CFR 3010.40 et seq., and Order No. 549, that it has entered into 
a bilateral agreement with HongKong Post Group (HongKong Post 2012 
Agreement or Agreement), which it seeks to include in the Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal Operators 
1 product.\1\ The Notice concerns the portion of a bilateral agreement 
with the HongKong Post Group for inbound competitive services that the 
Postal Service contends is similar and functionally equivalent to 
agreements already included in the Inbound Market Dominant Multi-
Service Agreements with Foreign Postal Operators 1 product. Id. at 2.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
November 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 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 HongKong 
Post 2012 Agreement. The Postal Service also provided a redacted 
version of the supporting financial documentation as a separate Excel 
file.
    In Order No. 549, the Commission approved the Inbound Market 
Dominant Multi-Service Agreements 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 (CPG Agreement). In 
Order No. 700, the Commission approved the functionally equivalent 
HongKong Post Agreement (HongKong Post Agreement).\2\ In Order 871, the 
Commission approved the functionally equivalent China Post 2011 
Agreement.\3\
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    \2\ See Docket No. R2011-4, Order Approving Rate Adjustment for 
HongKong Post-United States Postal Service Letter Post Bilateral 
Agreement Negotiated Service Agreement, March 18, 2011 (Order No. 
700).
    \3\ See Docket No. R2011-7, Order Concerning an Additional 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1 Negotiated Service Agreement, September 23, 2011 (Order 
871).
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    HongKong Post 2012 Agreement. The Postal Service and HongKong Post, 
the postal operator for Hong Kong are parties to the HongKong Post 2012 
Agreement. The Agreement covers, inter alia, the delivery of inbound 
Letter Post,

[[Page 72453]]

in the form of letters, flats, small packets, bags, and International 
Registered Mail service for Letter Post. It also includes an ancillary 
service for delivery confirmation scanning with Letter Post small 
packets. Notice at 4; Attachment 2 at 10. The Postal Service states 
that the proposed inbound market dominant rates are intended to become 
effective on January 1, 2012, and to remain in effect for 1 year. Id. 
at 3; Attachment 2 at 6. The HongKong Post 2012 Agreement provides that 
it becomes effective after all regulatory approvals have been received, 
notification to HongKong Post, and mutual 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., 
Attachment 2 at 2.
    Requirements under part 3010. The Postal Service states that the 
projected financial performance of the HongKong Post 2012 Agreement is 
provided in the Excel file included with its filing. It contends that 
improvements should enhance mail efficiency and other functions for 
Letter Post items under the Agreement. Id. at 4-5.
    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 the HongKong Post 2012 Agreement 
from separate reporting requirements under 39 CFR 3055.3(a)(3) as 
determined in Order Nos. 549, 700, and 871 for the Agreements in Docket 
Nos. R2010-5 and R2010-6, R2011-4, and R2011-7, respectively. Id. at 7.
    The Postal Service advances reasons why the instant Agreement is 
functionally equivalent to the previously filed CPG Agreement, TNT 
Agreement, HongKong Post Agreement and China Post 2011 Agreement. It 
contends that it contains the same attributes and methodology and fits 
within the Mail Classification Schedule language for the Inbound Multi-
Service Agreements with the Foreign Postal Operators 1 product. Id. at 
8-10. Additionally, it states that the HongKong Post 2012 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. Id. at 9.
    The Postal Service identifies specific terms that distinguish the 
instant Agreement from the three existing agreements. These 
distinctions include clarifying legal requirements, revised rates, 
term, signatory, and other changes. Id. at 10-11. The Postal Service 
contends that the instant Agreement is nonetheless functionally 
equivalent to existing agreements. Id. at 11.
    In its Notice, the Postal Service maintains that certain portions 
of the Agreement, prices, and related financial information should 
remain under seal. Id. at 11-12; id. Attachment 1.
    The Postal Service concludes that the HongKong Post 2012 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 12.

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 November 30, 2011. 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. R2012-4 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 November 30, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2011-30279 Filed 11-22-11; 8:45 am]
BILLING CODE 7710-FW-P