[Federal Register Volume 85, Number 225 (Friday, November 20, 2020)]
[Notices]
[Pages 74394-74473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25620]


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POSTAL SERVICE


Change in Rates and Classes of General Applicability for 
Competitive Products

AGENCY: Postal ServiceTM.

ACTION: Notice of a change in rates of general applicability for 
competitive products.

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SUMMARY: This notice sets forth changes in rates of general 
applicability for competitive products.

DATES: The change in rates is effective January 24, 2021.

FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.

SUPPLEMENTARY INFORMATION: On November 12, 2020, pursuant to their 
authority under 39 U.S.C. 3632, the Governors of the Postal Service 
established prices and classification changes for competitive products. 
The Governors' Decision and the record of proceedings in connection 
with such decision are reprinted below in accordance with section 
3632(b)(2).

Joshua J. Hofer,
Attorney, Federal Compliance.

Decision of the Governors of the United States Postal Service on 
Changes in Rates of General Applicability for Competitive Products 
(Governors' Decision No. 20-5)

November 12, 2020

Statement of Explanation and Justification

    Pursuant to authority under section 3632 of title 39, as amended by 
the Postal Accountability and Enhancement Act of 2006 (``PAEA''), we 
establish new prices of general applicability for the Postal Service's 
shipping services (competitive products), and such changes in 
classifications as are necessary to define the new prices. The changes 
are described generally below, with a detailed description of the 
changes in the attachment. The attachment includes the draft Mail 
Classification Schedule sections with classification changes in 
legislative format, and new prices displayed in the price charts.
    As shown in the nonpublic annex being filed under seal herewith, 
the changes we establish should enable each competitive product to 
cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result 
in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), 
which, as implemented by 39 CFR 3035.107(c), requires competitive 
products collectively to contribute a minimum of 9.1 percent to the 
Postal Service's institutional costs. Accordingly, no issue of 
subsidization of competitive products by market dominant products 
should arise (39 U.S.C. 3633(a)(1)). We therefore find that the new 
prices are in accordance with 39 U.S.C. 3632-3633 and 39 CFR 3035.102.

I. Domestic Products

A. Priority Mail Express

    Overall, the Priority Mail Express price change represents a 1.2 
percent increase. The existing structure of zoned Retail, Commercial 
Base, and Commercial Plus price categories is maintained, with 
Commercial Base and Commercial Plus prices continuing to be set equal 
to each other. Dimensional weighting, which was introduced for all 
zones in 2019, will continue in 2021. New for 2021, a $100 fee will be 
assessed on parcels found in the mailstream that exceed the maximum 
mailable size limit (combined length and girth greater than 130 
inches).
    Retail prices will increase an average of 1.0 percent. The price 
for the Retail Flat Rate Envelope, a significant portion of all 
Priority Mail Express volume, will remain priced at $26.35, with the 
Legal Size and Padded Flat Rate Envelopes priced at $26.50 and $26.95, 
respectively.
    The Commercial Base price category offers lower prices to customers 
who use online and other authorized postage payment methods. The 
Commercial Base prices will increase 2.5 percent on average. Commercial 
Base prices will, on average, reflect a 14.1 percent discount off of 
Retail prices.
    The Commercial Plus price category has traditionally offered even 
lower prices to large-volume customers. Commercial Plus prices were 
matched to the Commercial Base prices in 2016 and will continue to be 
in 2021. For January, Commercial Plus prices as a whole will receive a 
2.5 percent increase on average.

B. Priority Mail

    On average, the Priority Mail prices will be increased by 3.5 
percent. The existing structure of Priority Mail Retail, Commercial 
Base, and Commercial Plus

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price categories is maintained. Dimensional weighting, which was 
extended to all zones in 2019, will continue in 2021. New for 2021, a 
$100 fee will be assessed on parcels found in the mailstream that 
exceed the maximum mailable size limit (combined length and girth 
greater than 130 inches).
    Retail prices will increase an average of 3.0 percent. Retail Flat 
Rate Box prices will be: Small, $8.45; Medium, $15.50; Large, $21.90 
and Large APO/FPO/DPO, $20.40. Thus, the Large APO/FPO/DPO Flat Rate 
Box will be $1.50 less than the Large Flat Rate Box. The regular Flat 
Rate Envelope will be priced at $7.95, with the Legal Size and Padded 
Flat Rate Envelopes priced at $8.25 and $8.55, respectively.
    The Commercial Base price category offers lower prices to customers 
using authorized postage payment methods. The Commercial Base prices 
will increase 3.6 percent on average. Commercial Base prices will, on 
average, reflect a 14.4 percent discount off of Retail prices.
    The Commercial Plus price category has traditionally offered even 
lower prices to large-volume customers. For January, Commercial Plus 
prices as a whole will receive a 4.5 percent increase and will average 
14.1 percent off Retail prices.

C. Parcel Select

    On average, prices for destination-entered non-Lightweight Parcel 
Select, the Postal Service's bulk ground shipping product, will 
increase 8.9 percent. For destination delivery unit (DDU) entered 
parcels, the average price increase is 4.9 percent. For destination 
sectional center facility (DSCF) destination entered parcels, the 
average price increase is 10.7 percent. For destination network 
distribution center (DNDC) parcels, the average price increase is 9.7 
percent. Prices for Parcel Select Lightweight will increase by 20.0 
percent. Parcel Select Ground will see a 1.3 percent price increase. 
Dimensional weighting, which was introduced for all zones in 2019, will 
continue in 2021. New for 2021, a $100 fee will be assessed on parcels 
found in the mailstream that exceed the maximum mailable size limit 
(combined length and girth greater than 130 inches).

D. Parcel Return Service

    Parcel Return Service prices will have an overall price increase of 
4.9 percent. Prices for parcels retrieved at a return sectional center 
facility (RSCF) will increase by 4.9 percent, and prices for parcels 
picked up at a return delivery unit (RDU) will increase 4.9 percent. 
New for 2021, a $100 fee will be assessed on parcels found in the 
mailstream that exceed the maximum mailable size limit (combined length 
and girth greater than 130 inches).

E. First-Class Package Service

    First-Class Package Service (FCPS) continues to be positioned as a 
lightweight (less than one pound) offering primarily used by businesses 
for fulfillment purposes. In 2017, First-Class Mail Parcels were 
transferred to the competitive product list and renamed First-Class 
Package Service--Retail (FCPS-Retail), and in 2019, the FCPS-Retail and 
FCPS-Commercial price categories were given zone-based pricing. 
Overall, FCPS prices will increase 6.2 percent, with a 4.8 percent 
increase for FCPS-Retail and a 6.5 percent increase for FCPS-
Commercial. New for 2021, a $100 fee will be assessed on parcels found 
in the mailstream that exceed the maximum mailable size limit (combined 
length and girth greater than 130 inches).

F. USPS Retail Ground

    USPS Retail Ground prices will increase 3.0 percent. Customers 
shipping in Zones 1-4 will continue to receive Priority Mail service 
and will only default to Retail Ground if the item contains hazardous 
material or is otherwise not permitted to travel by air transportation. 
New for 2021, a $100 fee will be assessed on parcels found in the 
mailstream that exceed the maximum mailable size limit (combined length 
and girth greater than 130 inches).

G. Domestic Extra Services

    Premium Forwarding Service (PFS) prices will increase between 3.9 
and 4.0 percent in 2021, depending on the specific rate element. The 
retail counter enrollment fee will increase to $22.75. The online 
enrollment option, introduced in 2014, will now be available for 
$20.90. The weekly reshipment fee will increase to $22.75. PFS Local, 
which was introduced in 2019 for P.O. Box customers, will have an 
increase in the reshipment fee to $22.75. Prices for Adult Signature 
service will increase to $6.90 for the basic service and $7.15 for the 
person-specific service. Address Enhancement Service price increases 
will vary depending on the particular rate element, to ensure adequate 
cost coverage. Competitive Post Office Box prices will be increasing 
23.3 percent on average, and some adjustments will be made to the price 
ranges. Package Intercept Service will increase 4.1 percent, to $15.25. 
The Pickup On Demand fee will increase to $25.00 for 2021. Premium Data 
Retention and Retrieval Service, which was introduced in 2020, will 
have no price change for 2021.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on January 24, 2021. We direct the Secretary to 
have this decision published in the Federal Register in accordance with 
39 U.S.C. 3632(b)(2), and direct management to file with the Postal 
Regulatory Commission appropriate notice of these changes.

    By The Governors:

/s/--------------------------------------------------------------------
Robert M. Duncan,

Chairman, Board of Governors.

United States Postal Service Office of the Board of Governors

Certification of Governors' Vote On Governors' Decision No. 20-5

    Consistent with 39 U.S.C. 3632(a), I hereby certify that, on 
November 12, 2020, the Governors voted on adopting Governors' Decision 
No. 20-5, and that a majority of the Governors then holding office 
voted in favor of that Decision.

/s/--------------------------------------------------------------------
Katherine Sigler,

Secretary of the Board of Governors (A).

Dated: November 12, 2020.
BILLING CODE 7710-12-P

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[FR Doc. 2020-25620 Filed 11-19-20; 8:45 am]
BILLING CODE 7710-12-C