[Federal Register Volume 82, Number 1 (Tuesday, January 3, 2017)]
[Notices]
[Pages 164-165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31770]


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POSTAL REGULATORY COMMISSION

[Docket No. R2017-2; Order No. 3707]


Type 2 Rate Adjustment

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
notice announcing a Type 2 rate adjustment to improve default rates 
established under the Universal Postal Union Acts. The adjustment and 
other changes are scheduled to take effect February 1, 2017. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: January 5, 2017.

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 December 22, 2016, the Postal Service filed a notice, pursuant 
to 39 CFR 3010.40 et seq., announcing a Type

[[Page 165]]

2 rate adjustment to improve default rates established under the 
Universal Postal Union Acts.\1\ The Notice concerns the inbound portion 
of a bilateral agreement with Australia Post (Agreement) that the 
Postal Service contends is functionally equivalent to the baseline 
agreement with China Post (China Post 2010 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, Notice of Filing Functionally Equivalent Agreement and 
Application for Non-Public Treatment of Materials Filed Under Seal, 
December 22, 2016, at 1 (Notice).
    \2\ Notice at 1-2; see Docket Nos. MC2010-35, R2010-5, and 
R2010-6, 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 
(Order No. 549).
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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 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 states the intended effective date of the 
Agreement is February 1, 2017; asserts 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 
Australia Post, the designated postal operator for Australia.\3\ The 
Postal Service states that the Agreement includes: A process for 
collecting tracking events associated with small packets with delivery 
scanning sent from Australia to the United States; the establishment of 
improved accounting and settlement processes for small packets with 
delivery scanning; sortation recommendations; and additional data 
exchange requirements and measurement objectives. Notice at 4-5.
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    \3\ Id. at 3. The Postal Service filed its Notice on December 
22, 2016, 41 calendar days prior to the intended implementation date 
of February 1, 2017. The Postal Service is reminded that it is 
required to transmit notice to the Commission no later than 45 
calendar days prior to the intended implementation date of a 
negotiated service agreement. See 39 CFR 3010.41.
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    Reporting requirements. Rule 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 7. The Postal Service also invokes, with respect to 
service performance measurement reporting under 39 CFR 3055.3(a)(3), 
the standing exception the Commission allowed in Order No. 996 for all 
agreements filed in the Inbound Market Dominant Multi-Service 
Agreements with Foreign Postal Operators 1 product grouping.\4\
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    \4\ Id. (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), as 
identified in 39 CFR 3010.40, i.e., 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 Australia 
Post in terms of its ability to tender small packet with delivery 
scanning flows from Australia or serve as the designated operator for 
letter post originating in Australia. Id. at 7-8.
    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.\5\ The Postal Service identifies 
differences between the Agreement and the baseline agreement but 
asserts that these differences do not detract from the conclusion that 
the Agreement is functionally equivalent to the baseline agreement. 
Notice at 9-11.
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    \5\ Id. at 8-9; see Docket Nos. MC2010-35, R2010-5, and R2010-6, 
Order No. 549.
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III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2017-2 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 January 5, 2017.\6\ 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.
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    \6\ Pursuant to 39 CFR 3010.44(a)(5), comments are due 10 days 
from the Postal Service's filing of the Notice. However, due to the 
holiday season, the Commission is extending the comment deadline.
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    The Commission appoints Katalin K. Clendenin 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. R2017-2 for consideration 
of matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin 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 January 5, 2017.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2016-31770 Filed 12-30-16; 8:45 am]
 BILLING CODE 7710-FW-P