[Federal Register Volume 79, Number 225 (Friday, November 21, 2014)]
[Notices]
[Pages 69539-69540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27562]


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POSTAL REGULATORY COMMISSION

[Docket No. R2015-3; Order No. 2251]


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 PostNL. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: December 2, 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. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On November 14, 2014, the Postal Service filed a notice, pursuant 
to 39 CFR 3010.40 et seq., announcing a Type 2 rate adjustment in 
conjunction with a new negotiated service agreement.\1\ The Notice 
concerns the inbound portion of a bilateral agreement with Royal PostNL 
BV (PostNL) (Agreement), which the Postal Service seeks to include 
within the Inbound Market Dominant Multi-Service Agreements with 
Foreign Postal Operators 1 (Docket Nos. MC2010-35, R2010-5 and R2010-6) 
product. Notice at 1.
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    \1\ United States Postal Service Notice of Type 2 Rate 
Adjustment, Notice Filing Functionally Equivalent Agreement and 
Application for Nonpublic Treatment, November 14, 2014 (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 Agreement. 
Id. The Postal Service includes a redacted version of the financial 
workpapers with its filing as a separate public Excel file.
    The Postal Service states that the intended effective date of the 
Agreement is January 1, 2015; asserts that it is providing more than 
the 45 days advance notice required under 39 CFR 3010.41; and 
identifies the parties to the Agreement as the United States Postal 
Service and PostNL, the postal operator for the Netherlands. Id. at 3-
4.
    Reporting requirements. Rule 3010.43 requires the Postal Service to 
submit a detailed data collection plan. In lieu of a special data 
collection for the Agreement, the Postal Service proposes to report 
information on the Agreement through the Annual Compliance Report. Id 
at 7. 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 Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal Operators 
1 product grouping. Id.
    Consistency with applicable statutory criteria. The Postal Service 
observes that Commission review of a negotiated service agreement 
addresses three statutory criteria, whether the agreement: (1) improves 
the Postal Service's net financial position 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 7-8 (citing 39 U.S.C. 
3622(c)(10)). The Postal Service asserts that it addresses the first 
two criteria in its Notice and that the third is inapplicable, as there 
are no entities similarly situated to PostNL in terms of their ability 
to tender broad-based Letter Post flows from the Netherlands. Id. at 8.
    Functional equivalence. The Postal Service addresses reasons why it 
considers the Agreement functionally equivalent to the Koninklijke TNT 
PostBV and TNT Post Pakketservice Benelux BV (TNT Agreement) baseline 
agreement, notwithstanding acknowledgement and identification of 
similarities and differences.\2\ The Postal Service asserts that it 
does not consider that the specified differences detract from the 
conclusion that the Agreement is functionally equivalent to the 
baseline TNT Agreement. Id. at 11.
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    \2\ Id. at 8-11. See also Docket Nos. MC2010-35, R2010-5, and 
R2010-6, Order No. 549, Order Adding Inbound Market Dominant Multi-
Service Agreements with Foreign Postal Operators 1 to the Market 
Dominant Product List and Approving Included Agreements, September 
30, 2010; Docket No. R2013-9, Order No. 2148, Order Granting, in 
Part, Motion for Partial Reconsideration of Order No. 1864 and 
Modifying, in Part, Order No. 1864, August 11, 2014.
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III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2015-3 to consider issues raised by the Notice. The 
Commission invites comments from interested persons on whether the 
Agreement is consistent with 39 U.S.C. 3622 and the requirements of 39 
CFR part 3010. Comments are due no later than December 2, 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 in 39 CFR part 3007.
    The Commission appoints James F. Callow to represent the interests 
of the general public (Public Representative) in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2015-3 for consideration 
of matters raised by the Postal Service's Notice.
    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 in this proceeding are due no 
later than December 2, 2014.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.


[[Page 69540]]


By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-27562 Filed 11-20-14; 8:45 am]
BILLING CODE 7710-FW-P