[Federal Register Volume 78, Number 181 (Wednesday, September 18, 2013)]
[Notices]
[Pages 57419-57421]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-22608]


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POSTAL REGULATORY COMMISSION

[Docket No. R2013-9; Order No. 1833]


International Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning a bilateral rate and service agreement with Korea Post. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: September 20, 2013.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. The Postal Service's Filings
III. Supplemental Information
IV. Commission Action
V. Ordering Paragraphs

I. Introduction

    Background. On September 10, 2013, the Postal Service filed notice, 
pursuant to 39 CFR 3010.40 et seq., announcing

[[Page 57420]]

that it has entered into a bilateral agreement with Korea Post 
(Agreement), along with a Type 2 rate adjustment.\1\ It asks that the 
Commission include the Agreement within the Inbound Market-Dominant 
Multi-Service Agreements with Foreign Postal Operators I (MC2010-35) 
product on grounds of functional equivalence. This Order provides 
public notice of the Postal Service's Notice, invites comments, and 
takes other administrative actions.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Bilateral 
Agreement with Korea Post, September 10, 2013 (collectively, 
Notice).
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II. The Postal Service's Filings

    Compliance with filing requirements. In addition to the Notice, the 
Postal Service filed an application for non-public treatment of 
materials filed under seal (Attachment 1); a redacted copy of the Korea 
Post Agreement (Attachment 2); and a redacted Excel file with 
supporting financial documentation. Notice at 3. The Postal Service 
also filed unredacted copies of the Agreement and the supporting 
financial documentation under seal. Id.
    The Agreement is the most recent in a series of agreements the 
Postal Service has proposed for inclusion within Inbound Market-
Dominant Multi-Service Agreements with Foreign Postal Operators I 
(MC2010-35).\2\ The Postal Service identifies Korea Post, the postal 
operator for the Republic of Korea, and the Postal Service as the 
parties to the Agreement. Id. at 4.
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    \2\ See Notice at 1-2 for previous agreements. The Postal 
Service uses the Singapore Post Agreement for purposes of 
identifying differences in the Agreement.
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    The Postal Service describes the Agreement as establishing a 
service for delivery confirmation scanning with Letter Post small 
packets. Id. It asserts this service is similar to the service for 
delivery confirmation scanning with Letter Post small packets 
established by the China Post 2010 Agreement and other agreements 
approved for inclusion with the product. Id. It states that the Type 2 
rate adjustment results in an improvement over default rates 
established under the Universal Postal Union Acts for inbound letter 
post items. Id. at 1.
    The Postal Service identifies October 1, 2013 as the intended 
effective date; states that its Notice provides the requisite advance 
notice; identifies a Postal Service official as a contact person; 
provides financial data and information in the redacted workpapers; 
describes expected operational improvements; and addresses why the 
Agreement will not result in unreasonable harm to the marketplace. Id. 
at 4-7.
    Data collection and performance reporting proposals. The Postal 
Service proposes that no special data collection plan be created for 
the Agreement because it intends to report information on the Agreement 
through the Annual Compliance Report. Id. at 7. With respect to 
performance measurement, the Postal Service asks that it be excepted 
from separate reporting under 39 CFR 3055.3(a)(3), and cites the 
Commission's granting of similar exceptions for other agreements in 
support of its proposal. Id. at 7-8. The Postal Service further 
requests, pursuant to 39 CFR 3055.3(a)(3), that the Commission approve 
an exception to the performance reporting requirements for all 
agreements added to the Mail Classification Schedule as Inbound Market-
Dominant Multi-Service Agreements with Foreign Postal Operators 1 
because the performance of the products covered by those agreements is 
already included in the measurement of other products. Id. at 12.
    Statutory criteria. The Postal Service states that under 39 U.S.C. 
3622(c)(10), the criteria for Commission review are whether the 
Agreement (1) improves the Postal Service's net financial position or 
enhances performance of operational functions; (2) will not cause 
unreasonable harm to the marketplace; and (3) will be available on 
public and reasonable terms to similarly situated mailers. Id. at 8. It 
states that it addresses the first two criteria in its Notice and views 
the third criterion as inapplicable, given Korea Post's status as the 
designated operator for Letter Post originating in the Republic of 
Korea. Id.
    Functional equivalence. In support of a finding of functional 
equivalence, the Postal Service states that the terms of the Agreement 
fit within the proposed Mail Classification Schedule (MCS) language for 
Inbound Market-Dominant Multi-Service Agreements with Foreign Postal 
Operators 1, so the Agreement and the agreements previously included 
within this product conform to a common description. Id. at 9. The 
Postal Service also states that the Agreement and referenced agreements 
constructed from a similar template and contain many similar terms and 
conditions, including establishing a service for delivery confirmation 
scanning with Letter Post small packets; are with foreign postal 
operators; and have cost characteristics, as they relate to services 
for delivery confirmation scanning with Letter Post small packets, that 
are similar. Id. at 9-10.
    The Postal Service identifies two material differences between the 
Agreement and the Singapore Post Agreement. Article 8, Paragraph 1 
provides that the Agreement may be terminated for good cause if a party 
fails to make timely and full payment of any undisputed invoice of 
portion thereof. Id. at 11. Annex 2 to the Agreement contains a section 
related to interest on past due undisputed invoices and portions 
thereof for inbound mailstreams. Id. The Postal Service states that 
these differences do not detract from the conclusion that the Korea 
Post Agreement is functionally equivalent to the Singapore Post 2011 
Agreement and other agreements in the Inbound Market-Dominant Multi-
Service Agreements with Foreign Postal Operators 1 product. Id.

III. Supplemental Information

    The Notice states: ``The agreement's inbound market dominant rates 
are planned to become effective on October 1, 2013. Public notice of 
these rates is being given through this Notice at least 45 days before 
the effective date.'' Id. at 3.\3\ Given the filing date of the Notice, 
please reconcile these two statements. A response to this inquiry is 
due no later than September 16, 2013.
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    \3\ See also 39 CFR 3010.44(b) (``[N]o rate shall take effect 
until 45 days after the Postal Service files a notice of rate 
adjustment specifying that rate.'').
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IV. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2013-9 to consider matters raised by the Notice. The 
Commission invites interested persons to submit comments on whether the 
Notice is consistent with the policies of 39 U.S.C. 3622 and 39 CFR 
part 3010.40. Comments are due no later than September 20, 2013.
    The public portions of the Postal Service's filings have been 
posted on the Commission's Web site. They can be accessed at http://www.prc.gov. Information on how to obtain access to non-public material 
is available at 39 CFR part 3007.
    The Commission appoints James F. Callow to serve as Public 
Representative in this proceeding.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2013-9 to consider 
matters raised by the Notice of United States Postal Service of Type 2 
Rate Adjustment, and Notice of Filing Functionally Equivalent Bilateral 
Agreement with Korea Post, filed September 10, 2013.

[[Page 57421]]

    2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    3. Comments by interested persons are due no later than September 
20, 2013.
    4. The response to the supplemental information requested is due no 
later than September 16, 2013.
    5. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2013-22608 Filed 9-17-13; 8:45 am]
BILLING CODE 7710-FW-P