[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Notices]
[Pages 29491-29492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10385]


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POSTAL REGULATORY COMMISSION

[Docket No. MT2020-1; Order No. 5504]


Market Test of Experimental Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently filed Postal Service 
proposal to conduct a market test of an experimental product called 
Commercial PO Box Redirect Service. This notice informs the public of 
the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: May 21, 2020.

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. Compliance With Legal Requirements
IV. Data Collection
V. Notice of Commission Action
VI. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3641 and 39 CFR part 3045, the Postal 
Service filed notice of its intent to conduct a market test of an 
experimental product called Commercial PO Box Redirect Service.\1\ 
Commercial PO Box Redirect Service will redirect automated letters 
during mail processing from the

[[Page 29492]]

Commercial PO Box indicated on the mailpiece to a second Commercial PO 
Box. Notice at 2. The Postal Service intends for the market test to run 
for two full years beginning on June 8, 2020. Id. at 3.
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    \1\ United States Postal Service Notice of Market Test of 
Experimental Product--Commercial PO Box Redirect Service, May 8, 
2020 (Notice).
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II. Background

    On May 8, 2020, the Postal Service filed the Notice proposing the 
Commercial PO Box Redirect Service market test. The Postal Service 
asserts that Commercial PO Box Redirect Service will provide an 
efficient solution for remittance mail processors, who receive and 
process payments enclosed in Courtesy Reply Mail or Business Reply Mail 
mailpieces on behalf of other businesses. Id. at 1. The Postal Service 
states that, if remittance mail processors need to consolidate or close 
the facilities associated with the address on the mailpiece, they must 
currently use their own couriers to move the pieces, use an existing 
postal bulk forwarding service, or employ private carriers. Id. at 1-2. 
The Commercial PO Box Redirect Service will redirect the mailpieces to 
the forwarding address at the first opportunity during mail processing. 
Id. at 2.
    The Postal Service states that Commercial PO Box Redirect Service 
will only be available to customers who use Caller Service with the PO 
Box to which the mailpieces will be redirected. Id. The service will 
only redirect automation First-Class Mail letter mailpieces. Id.
    The Postal Service plans to offer two price points for Commercial 
PO Box Redirect Service: $0.06 and $0.07. Id. The $0.06 price will be 
available to customers who certify that the service is essential to 
respond to a contingency, such as the COVID-19 pandemic, with all other 
eligible customers receiving the $0.07 price. Id.

III. Compliance With Legal Requirements

    The Postal Service asserts that the proposed market test meets the 
requirements in 39 U.S.C. 3641 and 39 CFR part 3045. First, the Postal 
Service explains that Commercial PO Box Redirect Service is 
``significantly different from all products offered by the Postal 
Service within the last two years'' as required by 39 U.S.C. 
3641(b)(1). Notice at 3. The Postal Service states that Commercial PO 
Box Redirect Service is ``critically different'' from the Premium 
Forwarding Service Commercial option because those mailpieces are 
delivered and then repackaged and dispatched as Priority Mail Express 
or Priority Mail shipments for delivery to the forwarding address in 
bulk. Id. at 4. The Postal Service asserts that Commercial PO Box 
Redirect Service differs from temporary and permanent Change of Address 
orders because the new service is indefinite and uses ``different 
operational processes to forward the pieces.'' Id.
    Second, the Postal Service asserts that Commercial PO Box Redirect 
Service ``will not create an unfair or otherwise inappropriate 
competitive advantage for the Postal Service or any mailer'' as 
required by 39 U.S.C. 3641(b)(2). Id. at 5. The Postal Service states 
that Commercial PO Box Redirect Service ``retools the market dominant 
letter processing network to create operational efficiencies prior to 
delivery, a domain in which the Postal Service does not compete with 
other carriers.'' Id. The Postal Service avers that, even if Commercial 
PO Box Redirect Service competes with existing after-delivery services, 
``the Postal Service cannot reasonably be said to compete unfairly with 
these services unless the objective of section 3641(b)(2) is to 
discourage efficiency gains in the Postal Service's market dominant 
network.'' Id.
    Third, the Postal Service states that Commercial PO Box Redirect 
Service is properly categorized as market dominant as required by 39 
U.S.C. 3641(b)(3). Id. at 6.

IV. Data Collection

    To better understand the results of the market test, the Postal 
Service asserts that it will collect the following data on a quarterly 
basis: Number of customers, volume of pieces redirected, and revenues. 
Id. The Postal Service also states that it will collect data on the 
attributable costs of Commercial PO Box Redirect Service, including 
administrative costs. Id.

V. Notice of Commission Action

    The Commission establishes Docket No. MT2020-1 to consider matters 
raised by the Notice. The Commission invites comments on whether the 
Postal Service's filing is consistent with the requirements of 39 
U.S.C. 3641 and 39 CFR part 3045. Comments are due no later than May 
21, 2020. The filing can be accessed via the Commission's website 
(http://www.prc.gov).
    The Commission appoints Richard A. Oliver to serve as an officer of 
the Commission to represent the interests of the general public in 
these proceedings (Public Representative).

VI. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MT2020-1 to consider the 
matters raised by the Notice.
    2. Pursuant to 39 U.S.C. 505, Richard A. Oliver is appointed to 
serve as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    3. Comments are due no later than May 21, 2020.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020-10385 Filed 5-14-20; 8:45 am]
BILLING CODE 7710-FW-P