[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Notices]
[Pages 38077-38079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15587]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2014-28; Order No. 2105]


Postal Product Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning several changes affecting Inbound Surface Parcel Post (At 
UPU Rates) and another product. These include a transfer from the 
market dominant product list to the competitive product list; a merger; 
and a new name for the merged product. This notice informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

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DATES: Comments are due: July 28, 2014. Reply Comments are due: August 
11, 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: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Notice of Filings
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On June 25, 2014, the Postal Service filed a notice with the 
Commission under 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. requesting 
that certain changes be made to the market dominant and competitive 
product lists.\1\ Specifically, the Postal Service proposes to: (1) 
Transfer Inbound Surface Parcel Post (at Universal Postal Union (UPU) 
rates) from the market dominant product list to the competitive product 
list; (2) merge the transferred product with Inbound Air Parcel Post 
(at UPU rates); and (3) identify the merged product as Inbound Parcel 
Post (at UPU rates). Id. at 1.
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    \1\ Request of the United States Postal Service to Transfer 
Inbound Surface Parcel Post (at UPU rates) to the Competitive 
Product List, June 25, 2014 (Request).
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    The Postal Service asserts that the transfer of Inbound Surface 
Parcel Post (at UPU rates) to the competitive product list is 
consistent with the current classification schedule and fulfills all of 
the criteria for competitive products under 39 U.S.C. 3642. Id. at 1-2. 
It therefore requests that the Commission transfer Inbound Surface 
Parcel Post (at UPU rates) from the market dominant product list to the 
competitive product list, merge the transferred product with Inbound 
Air Parcel Post (at UPU rates), and identify the merged product as 
Inbound Parcel Post (at UPU rates). The Postal Service states that 
there are no material changes to the product description and pricing 
but that the proposed Mail Classification Schedule (MCS) language does 
contain minor adjustments to ensure consistency between the Air and 
Surface Parcel Post descriptions. Id. at 2.

II. Notice of Filings

    Supporting materials. To support its Request, the Postal Service 
filed the following attachments:
     Attachment A--Resolution of the Governors of the United 
States Postal Service, June 18, 2014 (Resolution No. 14-03);
     Attachment B--Statement of Supporting Justification; and
     Attachment C--Draft Mail Classification Schedule (MCS) 
Language.
    In its Statement of Supporting Justification, the Postal Service 
explains why the proposed changes will not violate the standards of 39 
U.S.C. 3633. It notes that in FY 2013, Inbound Surface Parcel Post (at 
UPU rates) had a cost coverage of 153.6 percent. This cost coverage, 
together with the combined cost coverage of Inbound Surface Parcel Post 
(at UPU rates) and Inbound Air Parcel Post (at UPU rates) from FY 2013, 
show that the transfer will not adversely affect the Postal Service's 
ability to cover total institutional costs. Id., Attachment B at 2.
    To verify that the proposed change would not classify as 
competitive a product over which the Postal Service exercises 
sufficient market power, the Postal Service asserts that the UPU sets 
prices for Inbound Surface Parcel Post such that the Postal Service's 
market dominance is not related to the pricing of the product. Id., 
Attachment B at 2. The Postal Service also claims Inbound Surface 
Parcel Post (at UPU rates) is outside the scope of the letter monopoly 
because the rates payable are higher than six times the current price 
of a one-ounce Single-Piece First-Class letter and therefore falls 
within an exception to the Private Express Statutes in section 
601(b)(1) of title 39. Id.
    The Postal Service states that enterprises in the private sector 
engaged in the delivery of the product consist of private 
consolidators, freight forwarders, and integrators offering 
international shipping arrangements providing inbound parcel delivery 
services under similar conditions. Id., Attachment B at 3.
    In describing the views of current customers who use the product, 
the Postal Service indicates that it does not anticipate any major 
concern of customers because: (1) Neither the product nor the inward 
land rate is changing as a result of the transfer; (2) the Inbound 
Surface Parcel Postal (at UPU rates) has been available for years; and 
(3) the classification of the product does not affect the availability 
of the service or terms and conditions. Id.
    Similarly, the Postal Service does not anticipate an impact on 
small businesses because: (1) Neither the product nor the inward land 
rates is changing as a result of the transfer; (2) Inbound Surface 
Parcel Post (at UPU rates) has been available for years; and (3) the 
classification of the product does not affect the availability of the 
service or the terms and conditions. Id.
    The Postal Service contends the modifications will be consistent 
with past practices regarding the MCS. It asserts that Inbound Air 
Parcel Post (at UPU rates) has been classified previously as 
competitive; Inbound Surface Parcel Post (at UPU rates) has been 
included in bilateral agreements as part of the Inbound competitive 
Multi-Service Agreements with Foreign Postal Operations product; the 
domestic Parcel Post has recently been classified as competitive; and 
the single classification of Inbound Parcel Post (at UPU rates) will 
provide consistent treatment of parcel products in the MCS. Id., 
Attachment B at 3-4.

III. Commission Action

    The Commission establishes Docket No. MC2014-28 to consider the 
Postal Service's proposals described in its Request. Interested persons 
may submit comments on whether the Request is consistent with the 
policies of 39 U.S.C. 3642, 3632, 3633, and 39 CFR 3020.30 et seq. 
Comments are due by July 28, 2014. Reply comments are due by August 11, 
2014.
    The Request and related filings are available on the Commission's 
Web site (http://www.prc.gov). The Commission encourages interested 
persons to review the Request for further details.
    The Commission appoints Anne C. O'Connor to serve as Public 
Representative in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2014-28 to consider 
matters raised by the Request.
    2. Pursuant to 39 U.S.C. 505, Anne C. O'Connor 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 by July 28, 2014.
    4. Reply comments are due by August 11, 2014.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.


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    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2014-15587 Filed 7-2-14; 8:45 am]
BILLING CODE 7710-FW-P