[Federal Register Volume 86, Number 63 (Monday, April 5, 2021)]
[Notices]
[Pages 17648-17649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06879]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2021-78; Order No. 5856]


Transfer of Bound Print Matter Parcels

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
document with the Commission requesting that Bound Printed Matter 
Parcels be transferred to the Competitive Product list. This notice 
informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: May 7, 2021.

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. Commission Action
III. Ordering Paragraphs

I. Introduction

    On March 26, 2021, the Postal Service filed a notice with the 
Commission pursuant to 39 U.S.C. 3642 and 39 CFR 3040.130 et seq., 
requesting that Bound Printed Matter Parcels be transferred from the 
Market Dominant product list to the Competitive product list as Parcel 
Select Bound Printed Matter.\1\ In support of its Request, the Postal 
Service filed the following documents:
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    \1\ United States Postal Service Request to Transfer Bound 
Printed Matter Parcels to the Competitive Product List, March 26, 
2021 (Request).
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     Attachment A--Resolution of the Governors of the United 
States Postal Service, August 8, 2019 (Resolution No. 19-8);
     Attachment B--Certification; and
     Attachment C--Draft Mail Classification Schedule (MCS) 
Language.
    The Postal Service asserts that the new Parcel Select Bound Printed 
Matter product fulfills all of the criteria for competitive products 
under section 3642. See Request at 2-14. Specifically, the Postal 
Service states that mailers use Bound Printed Matter Parcels to ship 
inexpensive ``light- to moderate-weight packages containing books, 
catalogs, and similar printed matter'' for ground delivery as an 
alternative to more general-purpose ground shipping products offered by 
competitors. See id. at 6-7. The Postal Service notes that Bound 
Printed Matter Parcels also competes against hybrid products offered by 
resellers who enter the packages into the Postal Service's mailstream 
as Bound Printed Matter Parcels. Id. at 8. As evidence that it does not 
exercise monopoly power over Bound Printed Matter Parcels, the Postal

[[Page 17649]]

Service identifies the fact that most of its Bound Printed Matter 
Parcels volume originates from logistics entities with their own 
origin-through-last-mile delivery networks, and that the remaining 
volume almost entirely originates from other logistics entities and a 
small number of large customers. Id. at 10-14. The Postal Service notes 
that all of these logistics entities and other large customers would be 
able to divert volume to their own networks or else possess substantial 
negotiating power when seeking alternatives to the Postal Service. Id. 
at 10-12.
    In addition, the Postal Service states that the Private Express 
Statutes (PES) do not apply to the Bound Printed Matter Parcels product 
because the statutory definition of a ``letter'' explicitly excludes 
bound books, catalogs, and telephone directories that meet certain page 
requirements. Id. at 16. The Postal Service states that ``any 
incidental First-Class matter in [Bound Printed Matter Parcels] falls 
within the exception for cargo'' under the Commission's regulations. 
Id. at 17.
    The Postal Service notes that Bound Printed Matter Parcels did not 
cover its attributable costs in 2020, but it seeks authority from the 
Commission as part of this transfer to set prices for Parcel Select 
Bound Printed Matter that would cover its attributable costs. Id. at 
18. The Postal Service envisions setting prices for Parcel Select Bound 
Printed Matter in a competitive price adjustment following the 
transfer. Furthermore, the Postal Service asserts that after the 
addition of the Parcel Select Bound Printed Matter product, competitive 
products, as a whole, even in the absence of a price adjustment, will 
continue to contribute the necessary percentage towards total 
institutional costs. Id. at 18-19; see 39 U.S.C. 3633(a)(3), 39 CFR 
3035.107.
    The Postal Service also asserts that transferring Bound Printed 
Matter Parcels to the Competitive product list will address an 
arbitrary distinction between parcels containing bound, printed matter 
and parcels containing other goods. Request at 19.

II. Commission Action

    The Commission establishes Docket No. MC2021-78 to consider the 
Postal Service's proposals described in its Request. Interested persons 
may submit comments on whether the Request is consistent with the 
policies of 39 U.S.C. 3632, 3633, and 3642 and 39 CFR 3040.130 et seq. 
Comments are due by May 7, 2021.
    The Request and related filings are available on the Commission's 
website (http://www.prc.gov). The Commission encourages interested 
persons to review the Request for further details.
    The Commission appoints Joseph K. Press to serve as Public 
Representative in this proceeding.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2021-78 for 
consideration of the matters raised by the United States Postal Service 
Request to Transfer Bound Printed Matter Parcels to the Competitive 
Product List, filed March 26, 2021.
    2. Pursuant to 39 U.S.C. 505, Joseph K. Press 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 are due by May 7, 2021.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Jennie L. Jbara,
Alternate Certifying Officer.
[FR Doc. 2021-06879 Filed 4-2-21; 8:45 am]
BILLING CODE 7710-FW-P