[Federal Register Volume 84, Number 232 (Tuesday, December 3, 2019)]
[Notices]
[Pages 66239-66241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26061]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2019-17 and CP2019-155; Order No. 5323]


Transfer of Inbound Letter Post Small Packets and Bulky Letters

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
motion to effectuate the transfer of Inbound Letter Post Small Packets 
and Bulky Letters to the Competitive product list on January 1, 2020. 
This notice informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: December 10, 2019.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://

[[Page 66240]]

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. Proposed Prices
IV. Administrative Actions
V. Ordering Paragraphs

I. Introduction

    On November 20, 2019, the Postal Service filed a motion to 
effectuate the transfer of Inbound Letter Post Small Packets and Bulky 
Letters to the Competitive product list on January 1, 2020.\1\ With its 
Motion, the Postal Service filed proposed prices for the Inbound Letter 
Post Small Packets and Bulky Letters product that become effective on 
January 1, 2020. Motion at 4. The Postal Service intends to implement 
specific per-item and per-kilogram self-declared prices for Inbound 
Letter Post Small Packets and Bulky Letters on July 1, 2020.\2\ Given 
that the Motion proposes prices and implicates both of the above 
captioned dockets, the Commission issues this Notice and Order to 
provide notice of the Postal Service's proposal and provide for an 
opportunity for comment.
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    \1\ Docket No. MC2019-17, Motion of the United States Postal 
Service to Effectuate Transfer on January 1, 2020, and Application 
for Non-Public Treatment, November 20, 2019, at 1 (Motion).
    \2\ Id. at 3. See generally Docket No. CP2019-155, Notice of the 
United States Postal Service of Effective Date and Specific Rates 
Not of General Applicability for Inbound E-Format Letter Post, and 
Application for Non-Public Treatment, October 29, 2019 (Notice).
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II. Background

    In Order No. 4980, the Commission conditionally approved the 
transfer of Inbound Letter Post Small Packets and Bulky Letters items 
from the Market Dominant to Competitive products list.\3\ Before 
Inbound Letter Post Small Packets and Bulky Letters may be added to the 
Competitive product list, the Postal Service must propose and the 
Commission must approve prices that satisfy 39 U.S.C. 3633(a) and 39 
CFR part 3015. Order No. 4980 at 19.
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    \3\ Docket No. MC2019-17, Order Conditionally Approving 
Transfer, January 9, 2019 (Order No. 4980).
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    In Order No. 5152, the Commission approved a range of self-declared 
prices for Inbound Letter Post Small Packets and Bulky Letters from 
Universal Postal Union (UPU) group I, II, and III countries and from 
group IV countries with mail flows that exceed a certain annual tonnage 
threshold.\4\ The Commission also approved the application of default 
terminal dues established in the Universal Postal Convention to mail 
flows from group IV countries that do not exceed the annual tonnage 
threshold. Order No. 5152 at 5. When approving the range of self-
declared prices, the Commission directed the Postal Service to provide 
notice of specific per-item and per-kilogram prices at least 15 days 
before the effective date of those prices. Id. at 19. On October 29, 
2019, the Postal Service provided notice of specific per-item and per-
kilogram self-declared prices that it intends to implement on July 1, 
2020.\5\
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    \4\ Docket No. CP2019-155, Order Approving Range of Rates for 
Inbound Letter Post Small Packets and Bulky Letters and Associated 
International Registered Mail Service, July 12, 2019, at 5 (Order 
No. 5152). The Postal Service applied an annual tonnage threshold of 
100 tonnes. See Docket No. CP2019-155, Responses of the United 
States Postal Service to Questions 1-10 of Chairman's Information 
Request No. 1, question 3.a, June 7, 2019.
    \5\ The Commission previously issued a notice of these specific 
per-item and per-kilogram self-declared prices and invited comments 
regarding these self-declared prices in Docket No. CP2019-155. 
Docket No. CP2019-155, Notice and Order Concerning Rates Not of 
General Applicability for Inbound E Format Letter Post, October 30, 
2019 (Order No. 5288). The Commission will evaluate the comments 
submitted in response to Order No. 5288 in a future order addressing 
the proposed prices for Inbound Letter Post Small Packets and Bulky 
Letters in the above captioned dockets.
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III. Proposed Prices

    In the Motion, the Postal Service requests that the Commission 
approve the addition of Inbound Letter Post Small Packets and Bulky 
Letters to the Competitive product list, effective January 1, 2020. 
Motion at 1. The Motion identifies two sets of prices that would be in 
effect in Calendar Year (CY) 2020. First, terminal dues established by 
the Universal Postal Convention and its Regulations will apply from 
January 1, 2020, to June 30, 2020. See id. at 4. Second, for countries 
with mail flows that exceed applicable annual tonnage thresholds, the 
Postal Service proposes self-declared prices, which it intends to 
implement on July 1, 2020. Id.
    The Postal Service's Motion includes redacted financial workpapers 
supporting these proposed prices and a certification pursuant to 39 CFR 
3015.5(c)(2). Id. at 1; id. Attachment 2. In addition, the Postal 
Service includes the proposed prices and underlying workpapers under 
seal. See Motion at 1-2. The Postal Service states that the specific 
per-item and per-kilogram prices and supporting unredacted workpapers 
should remain confidential. Id. at 1-2 n.2. The Postal Service further 
explains its request for non-public treatment in its application for 
non-public treatment, filed pursuant to 39 CFR part 3007. Id. 
Attachment 1.
    The Postal Service states that prices for the Inbound Letter Post 
Small Packets and Bulky Letters pieces and associated Inbound 
Competitive International Registered Mail Service would conform to the 
requirements for competitive products under 39 U.S.C. 3633. Id. at 6-8. 
The Postal Service states that, for a 12-month forward looking period, 
the revenue generated by the proposed prices for CY 2020 cover 
attributable costs, avoid cross-subsidization, and do not impede 
competitive products' collective ability to cover the appropriate share 
of institutional costs. Id. at 6. The Postal Service asserts that the 
Commission should evaluate compliance based on the 12-month period 
following the transfer, which includes both the CY 2020 terminal dues, 
which go into effect on January 1, 2020, and the self-declared prices, 
which the Postal Service intends to implement on July 1, 2020. Id. at 
7.

IV. Administrative Actions

    The Commission invites comments on whether the planned changes are 
consistent with the policies of 39 U.S.C. 3632, 3633, and 3642; 39 CFR 
part 3015; and 39 CFR 3020.30 et seq. Comments are due by December 10, 
2019.
    The Request and related filings are available on the Commission's 
website (http://www.prc.gov). The Commission encourages interested 
persons to review the Motion and the Notice for further details.
    Pursuant to 39 U.S.C. 505, Katalin K. Clendenin will serve as 
Public Representative to represent the interests of the general public 
in these dockets.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission invites interested persons an opportunity to 
express views and offer comments on whether the planned changes are 
consistent with the policies of 39 U.S.C. 3632, 3633, and 3642; 39 CFR 
part 3015; and 39 CFR 3020.30 et seq.
    2. Comments are due no later than December 10, 2019.
    3. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin will serve as an 
officer of the Commission (Public Representative) to represent the 
interests of the general public in these dockets.

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    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-26061 Filed 12-2-19; 8:45 am]
 BILLING CODE 7710-FW-P