[Federal Register Volume 80, Number 23 (Wednesday, February 4, 2015)]
[Notices]
[Pages 6236-6416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-01850]



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Vol. 80

Wednesday,

No. 23

February 4, 2015

Part III





Postal Service





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Change in Rates and Classes of General Applicability for Competitive 
Products; Notice

  Federal Register / Vol. 80 , No. 23 / Wednesday, February 4, 2015 / 
Notices  

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POSTAL SERVICE


Change in Rates and Classes of General Applicability for 
Competitive Products

AGENCY: Postal Service.

ACTION: Notice of a change in rates of general applicability for 
competitive products.

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SUMMARY: This notice sets forth changes in rates of general 
applicability for competitive products.

DATES: Effective date: April 26, 2015.

FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, Jr., 202-268-
2989.

SUPPLEMENTARY INFORMATION: On January 26, 2015, pursuant to their 
authority under 39 U.S.C. 3632, the Governors of the Postal Service 
established prices and classification changes for competitive products. 
The Governors' Decision and the record of proceedings in connection 
with such decision are reprinted below in accordance with section 
3632(b)(2).

Stanley F. Mires,
Attorney, Federal Requirements.

Decision of the Governors of the United States Postal Service on 
Changes in Rates and Classes of General Applicability for Competitive 
Products (Governors' Decision No. 14-05)

December 05, 2014

Statement of Explanation and Justification

    Pursuant to our authority under section 3632 of title 39, as 
amended by the Postal Accountability and Enhancement Act of 2006 
(``PAEA''), we establish new prices of general applicability for the 
Postal Service's shipping services (competitive products), and such 
changes in classifications as are necessary to define the new prices. 
The changes are described generally below, with a detailed description 
of the changes in the attachment. The attachment includes the draft 
Mail Classification Schedule sections with classification changes in 
legislative format, and new prices displayed in the price charts.
    As shown in the nonpublic annex being filed under seal herewith, 
the changes we establish should enable each competitive product to 
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result 
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), 
which, as implemented by 39 CFR 3015.7(c), requires competitive 
products to contribute a minimum of 5.5 percent to the Postal Service's 
institutional costs. Accordingly, no issue of subsidization of 
competitive products by market dominant products should arise (39 
U.S.C. 3633(a)(1)). We therefore find that the new prices and 
classification changes are in accordance with 39 U.S.C. 3632-3633 and 
39 CFR 3015.2.

I. Domestic Products

A. Priority Mail Express

    The existing structure of Priority Mail Express Retail, Commercial 
Base, and Commercial Plus price categories is maintained. No price 
changes are proposed, but some minor classification changes are made.

B. Priority Mail

    The existing structure of Priority Mail Retail, Commercial Base, 
and Commercial Plus price categories is maintained. No price changes 
are proposed, but some minor classification changes are made.

C. Parcel Select

    On average, prices for non-Lightweight Parcel Select, the Postal 
Service's bulk ground shipping product, will increase 8.0 percent. For 
destination entered parcels, the average price increase is 7.3 percent. 
For non-destination entered parcels, the average price increase is 8.7 
percent. Prices for Parcel Select Lightweight, formerly Standard Mail 
commercial parcels, will increase by 9.8 percent.

D. Parcel Return Service

    Parcel Return Service prices will have an overall price increase of 
4.8 percent. Prices for parcels retrieved at a return Network 
Distribution Center (RNDC) will increase by 5.7 percent, and prices for 
parcels retrieved at a return Sectional Center Facility (RSCF) will 
increase by 5.0 percent. Prices for parcels picked up at a return 
delivery unit (RDU) will increase 4.7 percent. Parcel Return Service-
Full Network is being eliminated because of insufficient volumes, and 
to simplify product offerings.

E. First-Class Package Service

    First-Class Package Service continues to be positioned as a 
lightweight (less than one pound) offering used by businesses for 
fulfillment purposes. Overall, First-Class Package Service prices will 
increase 5.1 percent, with no structural changes. Price and 
classification changes are being made to the First-Class Package 
Service product, in the event that a pending transfer request of First-
Class Mail Retail parcels to the competitive product list is approved 
by the Postal Regulatory Commission (``Commission''). Prices for First-
Class Mail Retail parcels will be increased 22 percent if the transfer 
is approved. If the Commission does not approve the transfer, those 
changes shall be removed.

F. Standard Post

    Standard Post prices will increase 11.4 percent for 2015. Prices in 
Zones 1-4 will continue to align with the retail Priority Mail prices 
for those zones. Therefore, customers shipping in those price cells 
will receive Priority Mail service, and will only default to Standard 
Post if the item contains hazardous material or is otherwise not 
permitted to travel by air transportation.

G. Round-Trip Mailer

    If the Commission authorizes the addition of the Round-Trip Mailer 
to the competitive product list, price and classification language 
reflecting that addition shall be reflected in the Mail Classification 
Schedule. Prices for the Round-Trip Mailer will be increased 
approximately 2.3 percent if the transfer is approved.

H. Domestic Extra Services

    Premium Forwarding Service prices will increase slightly in 2015. 
The retail counter enrollment fee will increase to $18.00. The online 
enrollment option, introduced in 2014, will now be available for 
$16.50. The weekly reshipment fee will increase to $18.00. Prices for 
Adult Signature service will increase to $5.50 for the basic service 
and $5.75 for the person-specific service. Address Enhancement Service 
prices will be increasing between zero and 4.7 percent depending on the 
particular rate element, to ensure adequate cost coverage. Competitive 
Post Office Box prices will be increasing 3.5 percent on average, which 
is within the existing price ranges. Package Intercept Service will 
increase 5.7 percent, to $12.15. The Pickup on demand fee will remain 
unchanged for 2015.

II. International Products

A. Expedited Services

    International expedited services include Global Express Guaranteed 
(GXG) and Priority Mail Express International (PMEI). Overall, GXG 
prices will rise by 7.2 percent, and PMEI will be subject to an overall 
6.7 percent increase. The existing structure of GXG Retail, Commercial 
Base, and Commercial Plus price categories will be maintained.

B. Priority Mail International

    The overall increase for Priority Mail International (PMI) will be 
5.5 percent.

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The existing structure of PMI Flat Rate, Retail, Commercial Base, and 
Commercial Plus price categories will be maintained, except for the 
establishment of new zoned prices based on origin ZIP Code for PMI 
destined to Canada. In addition, the maximum weight for PMI for Rate 
Group 17 (Netherlands) will increase to 66 lbs.

C. International Priority Airmail and International Surface Air Lift

    Published prices for International Priority Airmail (IPA) and 
International Surface Air Lift (ISAL) will increase by 4.5 percent.

D. Airmail M-Bags

    The published prices for Airmail M-Bags will increase by 6.8 
percent.

E. First-Class Package International ServiceTM

    The overall increase for First-Class Package International Service 
(FCPIS) prices will be 7.2 percent. The existing structure of FCPIS 
Retail, Commercial Base, and Commercial Plus price categories will be 
maintained.

F. International Ancillary Services and Special Services

    Prices for several international ancillary services will be 
increased. As a housekeeping matter, provisions concerning Inbound 
International Return Receipt and Inbound International Insurance will 
be removed from the Mail Classification Schedule. Certificates of 
Mailing will increase 2.5 percent. Registered Mail will increase 2.2 
percent. International Return Receipt will increase 2.7 percent. The 
insurance tables for PMEI and PMI will be combined to simplify pricing.
    In addition, along with minor formatting and wording changes, 
International Business Return Service (IBRS) Competitive Contract 
product will be renumbered.

G. Promotions

    The Postal Service may offer one or more promotions in the form of 
a discount or rebate on certain international products, during an 
established promotional program period, to mailers that comply with the 
eligibility requirements of the promotional program. Details of each 
such program shall be filed in separate filings with the Postal 
Regulatory Commission.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on April 26, 2015. We direct the Secretary to 
have this decision published in the Federal Register in accordance with 
39 U.S.C. 3632(b)(2). We also direct management to file with the Postal 
Regulatory Commission appropriate notice of these changes.

By The Governors.

Mickey D. Barnett,
Chairman.
BILLING CODE 7710-P

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[FR Doc. 2015-01850 Filed 2-3-15; 8:45 am]
BILLING CODE 7710-C