[Federal Register Volume 79, Number 56 (Monday, March 24, 2014)]
[Notices]
[Pages 16065-16066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06235]


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POSTAL REGULATORY COMMISSION

[Docket No. R2014-7; Order No. 2024]


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 Type 2 rate adjustment and the filing of a related 
negotiated service agreement with China Post Group. This notice informs 
the public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: March 24, 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. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    On March 14, 2014, the Postal Service filed notice, pursuant to 39 
CFR 3010.40 et seq., of a Type 2 rate adjustment and the filing of a 
related negotiated service agreement with China Post Group involving 
the inbound portion of a multi-product bilateral agreement (2014 
Agreement).\1\ The Postal Service requests that the Commission include 
the 2014 Agreement within the Inbound Market Dominant Multi-Service 
Agreements with Foreign Postal Operators (MC2010-35, R2010-5, and 
R2010-6) (Foreign Postal Operators 1) product. Id. at 13.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement 
with China Post Group, March 14, 2014 (collectively, Notice).
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II. Contents of Filing

    The Postal Service's filing consists of the Notice, two 
attachments, and redacted and unredacted versions of an Excel file with 
supporting financial workpapers. Id. at 2. Attachment 1 is an 
application for non-public treatment of material filed under seal with 
the Commission. Id. Attachment 2 is a redacted copy of the 2014 
Agreement. Id.
    The Notice identifies May 1, 2014 as the intended effective date of 
the 2014 Agreement and June 30, 2015 as the expiration date. Id. at 11. 
The Notice asserts that the requisite 45 days' advance notice is being 
provided; identifies a Postal Service official as a contact for further 
information; and identifies the parties to the Agreement as the United 
States Postal Service and China Post Group, the postal operator for 
China. Id. at 2-4. The Notice states that the Agreement includes 
delivery confirmation scanning with Letter Post small packets, a 
service also included in the China Post 2010, China Post 2011, and 
China Post 2013 Agreements. Id. at 4. However, it states that the 2014 
Agreement includes two versions of inbound scanning with small packets: 
China to United States Small Packet with Delivery Scanning Dispatched 
by China EMS (the subject of Annex 2) and China to United States Small 
Packet with Delivery Scanning Dispatched by China Letter Post (the 
subject of Annex 10). Id. It asserts that the two versions acknowledge 
the roles of, differentiate processing by, and improve settlement 
procedures in relation to the two entities within China Post that 
dispatch inbound delivery confirmation scanning with small packets. Id.
    The Notice states that the financial workpapers address the 
expected financial improvements, costs, volumes, and revenues; 
describes several operational improvements; and provides reasons why 
the 2014 Agreement will not result in unreasonable harm to the 
marketplace. Id. at 4-7. It also includes requests for exceptions to 
the financial data and service performance requirements in 39 CFR 
3010.43 and 3055.3(a)(3), respectively; addresses the consistency of 
the filing with the statutory criteria in 39 U.S.C. 3622(c)(10); and 
discusses functional equivalency. Id. at 8-12. The functional 
equivalency discussion identifies the predecessor 2013 China Post 
Agreement as the baseline agreement; describes differences between the 
2014 Agreement and the baseline agreement; and concludes that the 
differences do not affect the similarity of market characteristics or 
similarity of cost characteristics of the two agreements. Id. at 11-12.

III. Initial Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2014-7 to consider issues raised by the Notice. The 
Commission invites public 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, subpart D. Comments are due no later 
than March 24, 2014. The public portions of the Postal Service's filing 
have been posted on the Commission's Web site and can be accessed at 
http://www.prc.gov. Information on the Commission's treatment of non-
public materials, including how to obtain

[[Page 16066]]

access to such materials, appears at 39 CFR part 3007. The Commission 
appoints Pamela A. Thompson to serve as Public Representative in this 
docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2014-7 to consider 
matters raised by the Notice of United States Postal Service of Type 2 
Rate Adjustment, and Notice of Filing Functionally Equivalent 
Agreement, filed March 14, 2014.
    2. Pursuant to 39 U.S.C. 505, Pamela A. Thompson 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 March 24, 2014.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-06235 Filed 3-21-14; 8:45 am]
BILLING CODE 7710-FW-P