[Federal Register Volume 76, Number 240 (Wednesday, December 14, 2011)]
[Notices]
[Pages 77856-77857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32046]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2012-3; Order No. 1033]


International Mail Price Change for Inbound Air Parcel Post

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
request to change rates for Inbound Air Parcel Post at Universal Postal 
Union (UPU) rates. This notice addresses procedural steps associated 
with this filing.

DATES: Comments are due: December 16, 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 http://www.prc.gov/prc-pages/filing-online/login.aspx. 
Persons 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:

Table of Contents

I. Introduction
II. Background
III. Notice of Filing
IV. Ordering Paragraphs

I. Introduction

    On December 6, 2011, the Postal Service filed a notice announcing 
changes in rates not of general applicability for Inbound Air Parcel 
Post at Universal Postal Union (UPU) rates with an intended effective 
date of January 1, 2012.\1\ The Notice incorporates by reference the 
explanation of Inbound Air Parcel Post at UPU Rates and the mechanism 
for setting rates contained in its request and supporting documentation 
filed in Docket Nos. MC2010-11 and CP2010-11.\2\ Notice at 2.
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    \1\ Notice of the United States Postal Service of Filing Changes 
in Rates Not of General Applicability and Application for Non-Public 
Treatment of Materials Filed Under Seal, December 6, 2011 (Notice).
    \2\ See Docket Nos. MC2010-11 and CP2010-11, Request of the 
United States Postal Service to Add Inbound Air Parcel Post at 
Universal Postal Union (UPU) Rates to the Competitive Products List, 
Notice of Establishment of Prices and Classifications Not of General 
Applicability for Inbound Air Parcel Post at UPU Rates Established 
in Governors' Decision No. 09-15, and Application for Non-Public 
Treatment of Materials Filed Under Seal, November 17, 2009 
(Request).
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    In support of its Notice, the Postal Service filed four attachments 
as follows:
     Attachment 1--an application for non-public treatment of 
materials to maintain redacted rates and supporting documents under 
seal;
     Attachment 2--a redacted copy of Governors' Decision No. 
09-15 which establishes prices and classifications for Inbound Air 
Parcel Post at UPU Rates, proposed Mail Classification Schedule 
language which includes a description of Inbound Air Parcel Post at UPU 
Rates, certification of prices in conformity with 39 U.S.C. 3633, an 
analysis of the procedures for setting rates, and certification of the 
Governors' vote;
     Attachment 3--a redacted version of the new rates; and
     Attachment 4--a certified statement required by 39 CFR 
3015.5(c)(2) for Inbound Air Parcel Post at UPU rates.
    The Postal Service also provided a redacted version of the 
supporting financial documentation as a separate Excel file.

II. Background

    The Notice states that Governors' Decision No. 09-15 established 
prices and classifications not of general applicability for Inbound Air 
Parcel Post at UPU Rates on November 16, 2009. Id. at 1. Air parcels 
comprise inbound parcels eligible to receive transportation by air 
rather than surface. Id., Attachment 2 at 1. The rates authorized by 
Governors' Decision No. 09-15 when there is no contractual relationship 
with the tendering postal operator are the highest possible inward land 
rates that the United States is eligible for under the parcel post 
regulations. Id. at 2. In Order No. 362, the Commission approved the 
addition of Inbound Air

[[Page 77857]]

Parcel Post at UPU Rates to the competitive product list.\3\
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    \3\ See Docket Nos. MC2010-11 and CP2010-11, Order Adding 
Inbound Air Parcel Post at UPU Rates to Competitive Product List, 
December 15, 2009 (Order No. 362).
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    The Postal Service states in its Notice that the rates in its 
filing comport with Governors' Decision No. 09-15 and are ``the highest 
possible inward land rates for which the Postal Service was eligible 
based on inflation increases and other factors.'' Notice at 2-3.
    In the Postal Service's Request in Docket Nos. MC2010-11 and 
CP2010-11, it explains the process for determining Inbound Air Parcel 
Post at UPU Rates. In its Request, the Postal Service indicates that 
the United States receives both air and surface parcels from foreign 
postal administrations which compensate the Postal Service for delivery 
of these parcels in the United States. Request at 2. It maintains that 
it has negotiated separate agreements for parcel rates with certain 
foreign posts, but most compensate it at the United States default 
rates for inbound parcel delivery. Id. Payments between postal 
administrations for handling and delivering parcel post are referred to 
as inward land rates. The Postal Service notes that inward land rates 
are set according to formulas in the UPU Parcel Post Regulations which 
constitute international law. Id. More specifically, the UPU Postal 
Operations Council establishes inward land rates.\4\ Such rates are 
based on a percentage of each member's inward land rate in 2004. Id. at 
3. UPU members may qualify for percentage ``bonuses'' to their base 
rate based upon their provision of certain value-added services.\5\ Id. 
The Postal Service states it is responsible for gathering information 
that the UPU Postal Operations Council uses to calculate the rates, 
including completion of a questionnaire on service bonus eligibility 
and submission of annual inflation information from the Consumer Price 
Index for All Urban Consumers. Id. Based on this and similar 
information from the member posts, the UPU International Bureau 
publishes an annual notice establishing the postal administration's 
parcel rates for the following year. Id.
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    \4\ The UPU Postal Operations Council is a designated body of 
the UPU which is responsible for rate setting.
    \5\ The Postal Service states that services such as ``track and 
trace, home delivery, published delivery standards, and use of a 
common inquiry system'' qualify UPU members for bonuses. Id. Members 
may also seek an inflation-related adjustment to the base rate which 
is capped at 5 percent per year.
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    The Postal Service states that because of the unique mechanism for 
setting inward land rates, it chose to establish rates for inbound air 
parcels by reference to the Universal Postal Convention. Id.
    In its Notice the Postal Service maintains that certain portions of 
the Governors' Decision, the new rates, and related financial 
documentation should remain under seal. Notice at 3, Attachment 1. It 
also asserts that its filing demonstrates compliance with 39 U.S.C. 
3633. Id. at 3.

III. Notice of Filing

    The Commission establishes Docket No. CP2012-3 for consideration of 
matters raised by the Postal Service's Notice.
    The Commission appoints James F. Callow as Public Representative in 
this proceeding.
    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 or 3633, or 39 CFR part 3015. Comments 
are due no later than December 16, 2011. The public portions of these 
filings can be accessed via the Commission's Web site (http://www.prc.gov).

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2012-3 for consideration 
of the matters raised in this docket.
    2. Comments by interested persons in this proceeding are due no 
later than December 16, 2011.
    3. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve 
as officer of the Commission (Public Representative) to represent the 
interest of the general public in this proceeding.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-32046 Filed 12-13-11; 8:45 am]
BILLING CODE 7710-FW-P