[Federal Register Volume 79, Number 36 (Monday, February 24, 2014)]
[Notices]
[Pages 10204-10205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03827]


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POSTAL REGULATORY COMMISSION

[Docket No. R2014-5; Order No. 1988]


International Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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

DATES: Comments are due: February 25, 2014.

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: Brian Corcoran, Acting General 
Counsel, at 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On February 12, 2014, the Postal Service filed Notice, pursuant to 
39 CFR 3010.40 et seq., that it has entered into a modification of a 
bilateral agreement for inbound market dominant services with Singapore 
Post Limited (2014 Agreement).\1\ The Postal Service seeks to have the 
2014 Agreement included within the Inbound Market Dominant Multi-
Service Agreements with Foreign Postal Operators 1 (Foreign Postal 
Operators 1) product on grounds of functional equivalence to the 
Singapore Post Agreements filed in predecessor dockets.\2\ 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, 
February 12, 2014 (collectively, Notice). The Notice identifies two 
changes (described in Part II of this Order), and refers to them as 
Modification Four.
    \2\ See Docket Nos. R2012-1, R2013-5, and R2013-8. In the latter 
two dockets, the Commission considered an agreement referred to as 
``2013 Agreement.'' The 2013 Agreement is currently in effect. It is 
scheduled to expire March 31, 2014.
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II. Contents of Filing

    Compliance with filing requirements. The Postal Service's filing, 
which consists of the Notice, five attachments, and supporting 
financial workpapers, addresses compliance with 39 U.S.C. 3622 and 39 
CFR 3010.40. Attachment 1 is the Application of the United States 
Postal Service for Non-Public Treatment of Materials.\3\ Id. at 9. 
Attachment 2 is a copy of Modification Four. Id. at 3. Attachment 3 is 
a redacted copy of the Singapore Post Agreement filed in Docket No. 
R2012-1. Id. Attachment 4 is a copy of Modification Two (filed in 
Docket No. R2013-5). Id. Attachment 5 is a redacted copy of 
Modification Three (filed in Docket No. R2013-8). Id. A redacted 
version of the financial workpapers appears in a separate public Excel 
file. Id.
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    \3\ The material filed under seal consists of a copy of the 
Singapore Post Agreement filed in Docket No. R2012-1 (Notice, 
Attachment 1); Modification Three (Notice, Attachment 5); and 
supporting financial documentation. Id. at 3.
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    The Postal Service states that the intended effective date of the 
2014 Agreement is April 1, 2014; asserts that it is providing 45 days 
advance notice as required under 39 CFR 3010.41; and identifies a 
Postal Service official as a contact for further information. Id. at 4. 
The Postal Service identifies the parties to the 2014 Agreement as the 
United States Postal Service and Singapore Post Limited, the postal 
operator for Singapore. Id. It states that the 2014 Agreement includes 
negotiated pricing for inbound small packets with delivery scanning. 
Id.
    The Postal Service asserts that other than extending the term and 
adding a sentence to Annex 2, Modification Four does not materially 
change the terms of the Singapore Post Agreement.\4\ Notice at 5. The 
Postal Service therefore refers the Commission to the notice filed in 
Docket No. R2012-1 for a discussion of details regarding actions to 
assure that the Singapore Post 2014 Agreement will not result in 
unreasonable harm to the marketplace. Id.
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    \4\ The sentence reads: ``The Exempt indicator in the PREDES 
message will reflect `N'.'' Notice, Attachment 2 at 1. It is added 
to Annex 2, Small Packet with Delivery Scanning Requirements, at the 
end of section 3, Dispatch Manifesting, in the Dispatch Preparation 
Requirements section. Id.
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    Reporting requirements. In lieu of the detailed data collection 
plan required by rule 3010.43, the Postal Service proposes to report 
information on the

[[Page 10205]]

2014 Agreement through the Annual Compliance Report. Id. at 6. The 
Postal Service also invokes, with respect to service performance 
measurement reporting under rule 3055.3(a)(3), the standing exception 
in Order No. 996 for all agreements filed in the Foreign Postal 
Operators 1 product grouping. Id.\5\
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    \5\ Docket No. R2012-2, Order Concerning an Additional Inbound 
Market Dominant Multi-Service Agreement with Foreign Postal 
Operators 1 Negotiated Service Agreement, November 23, 2011 (Order 
No. 996).
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    Consistency with applicable statutory criteria. The Postal Service 
states that under 39 U.S.C. 3622, the criteria for the Commission's 
review are whether the 2013 Agreement: (1) Improves the net financial 
position of the Postal Service or enhances the 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 7. The Postal Service states that 
Part I.A. of its Notice addresses the first two criteria. Id. With 
respect to the third criterion, the Postal Service asserts there are no 
entities similarly situated to Singapore Post Limited in their ability 
to tender broad-based Letter Post flows from Singapore under similar 
operational conditions, nor are there any other entities that serve as 
a designated operator for Letter Post originating in Singapore. Id.
    Functional equivalence. The Postal Service posits that the 2014 
Agreement is functionally equivalent to the Singapore Post Agreements 
previously included in the product grouping for Foreign Postal 
Operators 1 because it is very similar to 2013 Agreement (approved by 
the Commission in Docket No. R2013-8). Id. at 8. It states that the 
main difference is the addition of one sentence to Annex 2. Id. The 
Postal Service observes that the 2013 Agreement was found to be 
appropriately classified in the Foreign Postal Operators 1 product 
grouping because it met all applicable statutory and regulatory 
requirements. Id. It further states that the 2014 Agreement, like the 
2013 Agreement, fits within the Mail Classification Language for the 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1, so both therefore conform to a common description. Id. The 
Postal Service also states that the two agreements share a common 
market and have similar financial models for projection of costs and 
revenues. Id. The Postal Service therefore submits that the 2014 
Agreement is functionally equivalent to its predecessor (the 2013 
Agreement), and asserts the predecessor is a logical baseline for 
purposes of the functional equivalency comparison. Id. at 8-9. The 
Postal Service acknowledges the existence of two differences (the 
extension to March 31, 2015 and the additional sentence in Annex 2), 
but asserts that neither has an effect on the similarity of market 
characteristics or the similarity of cost differences. Id. at 9. The 
Postal Service therefore states that the differences do not detract 
from the conclusion that the 2014 Agreement is functionally equivalent 
to its predecessor agreement (the 2013 Agreement) in the Foreign Postal 
Operators 1 product grouping. Id.
    Supplemental information. The sentence that is added in Annex 2 
reads: ``The Exempt indicator in the PREDES message will reflect `N'.'' 
Id., Attachment 2 at 1. The sentence immediately preceding the 
additional sentence refers to number of receptacles and number of 
individual pieces. Id. The Postal Service is directed to explain what 
the ``N'' in the new sentence refers to and to provide a brief 
explanation of PREDES. The Postal Service is also directed to address 
how the inclusion of the new sentence alters contractual obligations 
relative to the 2013 Agreement.
    A response is due no later than February 24, 2014.

III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2014-5 to consider issues raised by the Notice. The 
Commission invites comments from interested persons on whether the 2014 
Agreement is consistent with 39 U.S.C. 3622 and the requirements of 39 
CFR part 3040. Comments are due no later than February 25, 2014. The 
public portions of this filing can be accessed via the Commission's Web 
site (http://www.prc.gov). Information on how to obtain access to non-
public material appears at 39 CFR 3007.40.
    The Commission appoints Lyudmila Bzhilyanskaya to serve as Public 
Representative in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2014-5 for consideration 
of matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Lyudmila Bzhilyanskaya 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 in this proceeding are due no 
later than February 25, 2014.
    4. The Postal Service is directed to provide the supplemental 
information requested in the body of this order no later than February 
24, 2014.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-03827 Filed 2-21-14; 8:45 am]
BILLING CODE 7710-FW-P