[Federal Register Volume 83, Number 227 (Monday, November 26, 2018)]
[Proposed Rules]
[Pages 60385-60386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25665]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3010

[Docket No. RM2019-2; Order No. 4882]


Ratemaking Procedures for Inbound Letter Post and Related 
Services

AGENCY: Postal Regulatory Commission.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission to consider the application of the market dominant price cap 
to rates for Inbound Letter Post and certain other inbound 
international market dominant products. This document informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: December 10, 2018.

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. Background
III. Petition
IV. Invitation to Comment
V. Ordering Paragraphs

I. Introduction

    On November 16, 2018, the Postal Service filed a request for the 
Commission to consider the application of the market dominant price cap 
to rates for Inbound Letter Post and certain other inbound 
international market dominant products.\1\ The Postal Service requests 
that the Commission replace the price cap treatment with an 
``evaluation of whether price changes for these services promote the 
objectives in [39 U.S.C.] [s]ection 3622(b), taking into account the 
factors in [s]ection 3622(c).'' Petition at 2. The Commission initiates 
this rulemaking to seek comments and facilitate the Commission's 
examination into ratemaking procedures for Inbound Letter Post and 
related international services.
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    \1\ Petition of the United States Postal Service to Initiate a 
Rulemaking Concerning Ratemaking Procedures for Inbound Letter Post 
and Related Services, November 16, 2018 (Petition).
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II. Background

    At the same time it filed the instant Petition, the Postal Service 
filed a concurrent request seeking to transfer a portion of Inbound 
Letter Post (and inbound registered services associated with those 
items) to the competitive product list.\2\ The Postal Service states 
that it intends for the instant Petition to cover only the related 
products remaining on the market dominant product list upon resolution 
of the Transfer Request. Petition at 2, n.4.
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    \2\ Docket No. MC2019-17, United States Postal Service Request 
to Transfer Inbound Letter Post Small Packets and Bulky Letters, and 
Inbound Registered Service Associated with Such Items, to the 
Competitive Product List, November 16, 2018 (Transfer Request).
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    The Postal Service states that the recommendation to adopt self-
declared rates for terminal dues,\3\ made by the Department of State 
and endorsed by the President, creates uncertainty regarding the rates 
going forward. See Petition at 1, nn.1, 2; 2-3. The Postal Service 
further notes that the Department of State's negotiations could result 
in a decision to rescind withdrawal from the Universal Postal Union 
(UPU), but it is impossible to predict to what extent terminal dues 
would be self-declared or set by the UPU. Petition at 2-3. The Postal 
Service suggests that although the Commission's review of the market 
dominant ratemaking system is pending, to the extent that a market 
dominant price cap currently applies or is maintained in some form, 
there should be an exception for generally applicable rates set by the 
Postal Service that are paid by foreign postal operators. Id. at 4. The 
Postal Service states that its requested treatment of Inbound Letter 
Post rates should apply whether the rates are self-declared or not. Id. 
at 5.
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    \3\ Terminal dues refer to payments by foreign postal operators 
to the Postal Service for delivery of Inbound Letter Post in the 
United States.
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III. Petition

    The Postal Service requests that the Commission reconsider its 
decision in Order No. 43, in which it held that Inbound Letter Post 
must be classified as a market dominant product.\4\ The Postal Service 
states that changes in circumstances, including ``a significant shift 
in U.S. Government policy toward Inbound Letter Post,'' warrant a 
reconsideration of the decision to apply the market dominant price cap 
to inbound international products. See Petition at 5-9. The Postal 
Service states that the Postal Accountability and Enhancement Act's 
intent was to protect individual domestic customers, rather than 
foreign postal operators.\5\
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    \4\ Docket No. RM2007-1, Order Establishing Ratemaking 
Regulations for Market Dominant and Competitive Products, October 
29, 2007 (Order No. 43).
    \5\ Id. at 7, 8-9. Postal Accountability and Enhancement Act 
(PAEA), Public Law 109-435, 120 Stat. 3198 (2006).
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    The Postal Service proposes a regulatory system for Inbound Letter 
Post wherein the Commission would apply the objectives and factors 
listed in 39 U.S.C. 3622(b) and 3622(c) as standards for review of 
inbound international rate adjustments. Petition at 2, 9. The Postal 
Service suggests that this review can occur after-the-fact,

[[Page 60386]]

through the annual compliance review proceedings, but also proposes an 
alternative before-the-fact review of rate adjustments. Id. at 10. The 
Postal Service submits these proposed rules and alternative proposed 
rules in Appendix I of the Petition.

IV. Invitation to Comment

    The Commission establishes Docket No. RM2019-2 for consideration of 
matters raised in the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition no later than December 10, 
2018.
    Pursuant to 39 U.S.C. 505, Kenneth E. Richardson is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in the above-captioned 
docket.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2019-2 for consideration 
of the matters raised by the Petition of the United States Postal 
Service to Initiate a Rulemaking Concerning Ratemaking Procedures for 
Inbound Letter Post and Related Services, filed November 16, 2018.
    2. Comments are due no later than December 10, 2018.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth E. 
Richardson to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this Notice in 
the Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018-25665 Filed 11-23-18; 8:45 am]
BILLING CODE 7710-FW-P