[Federal Register Volume 80, Number 161 (Thursday, August 20, 2015)]
[Notices]
[Pages 50669-50670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20535]


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POSTAL REGULATORY COMMISSION

[Docket No. R2015-5; Order No. 2664]


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

DATES: Comments are due: September 14, 2015.

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
II. Ordering Paragraphs

I. Introduction

    On August 13, 2015, the Postal Service filed a notice, pursuant to 
39 CFR 3010.40 et seq., announcing a Type 2 rate adjustment to improve 
default rates established under the Universal Postal Union Acts.\1\ The 
Notice concerns a bilateral agreement with Hongkong Post (Agreement) 
that the Postal Service contends is similar to the prior Hongkong Post 
2014-2015 Agreement that the Commission included within the Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal Operators 
1 product in the market dominant product list of the Mail 
Classification Schedule.\2\
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
August 13, 2015, at 1(Notice).
    \2\ Id. at 1, citing Docket No. R2014-4, Order No. 1981, Order 
Approving an Additional Inbound Market Dominant Multi-Service 
Agreement with Foreign Postal Operators 1 Negotiated Service 
Agreement (with Hongkong Post), January 29, 2014, at 8.
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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. Notice at 1-2. Attachment 1 is an 
application for non-public treatment of material filed under seal with 
the Commission. Id. at 1. 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. 
Id. at 1-2.
    The Postal Service states that the intended effective date of the 
Agreement is October 1, 2015; asserts that it is providing at least 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 
Hongkong Post, the postal operator for Hong Kong. Id. at 2-3.
    Reporting requirements. 39 CFR 3010.43 requires the Postal Service 
to submit a detailed data collection plan. In lieu of a special data 
collection plan for the Agreement, the Postal Service proposes to 
report information on the Agreement through the Annual Compliance 
Report. Id. at 5-6. The

[[Page 50670]]

Postal Service also invokes, with respect to service performance 
measurement reporting under 39 CFR 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.\3\
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    \3\ Id. at 6, citing 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, at 7 (Order No. 996).
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    Consistency with applicable statutory criteria. The Postal Service 
observes that Commission review of a negotiated service agreement 
addresses three statutory criteria under 39 U.S.C. 3622(c)(10), 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. 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 Hongkong Post in terms of their ability to tender 
broad-based small packet flows from Hong Kong. Id.
    Functional equivalence. The Postal Service addresses reasons why it 
considers the Agreement functionally equivalent to the China Post 2010 
Agreement filed in Docket No. R2010-6.\4\ 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 China Post 2010 Agreement. Notice at 9.
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    \4\ Id. at 7; 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.
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III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2015-5 to consider issues raised in 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 September 14, 2015. 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. R2015-5 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 September 14, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-20535 Filed 8-19-15; 8:45 am]
BILLING CODE 7710-FW-P