[Federal Register Volume 87, Number 136 (Monday, July 18, 2022)]
[Proposed Rules]
[Pages 42669-42670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15228]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2022-9; Order No. 6223]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate a rulemaking proceeding to consider changes to 
analytical principles relating to periodic reports (Proposal Three). 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: August 12, 2022.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://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. Proposal Three
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On July 8, 2022, the Postal Service filed a petition pursuant to 39 
CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Three.
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    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Three), July 8, 2022 (Petition). The 
Postal Service also filed a notice of filing of non-public material 
relating to Proposal Three. Notice of Filing of USPS-RM2022-9-NP1 
and Application for Nonpublic Treatment, July 8, 2022.
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II. Proposal Three

    Background. Proposal Three relates to the Revenue, Pieces, and 
Weight (RPW) reporting methodology for measuring the country-level 
totals of contract mailpieces in outbound international product 
categories bearing permit-imprint indicia. See Petition; id. Proposal 
Three at 1. The international outbound products at issue include 
Priority Mail International (PMI), First-Class Package International 
Service (FCPIS), Priority Mail Express International (PMEI), First-
Class Mail International (FCMI), International Priority Airmail (IPA), 
International Surface Airlift (ISAL), and Commercial ePackets (CEPK). 
Proposal Three at 1. Currently, the Postal Service uses statistical 
sampling estimates from the System for International Revenue and 
Volume, Outbound, and International Origin Destination Information 
System (SIRVO-IODIS), along with estimates from Global Business System 
Dispatch (GBS Dispatch), to report the country-level totals. See id. 
The Postal Service also filed an assessment of the impact of the 
proposal on particular products in a non-public attachment accompanying 
this proposal.\2\
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    \2\ See Library Reference USPS-RM2022-9/NP1, July 8, 2022.
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    Proposal. The Postal Service's proposal seeks to replace the SIRVO-
IODIS sampling estimates and the GBS Dispatch estimates used in the 
existing RPW reporting methodology with granular census data. See id. 
at 5. The Postal Service would use two auxiliary data sources for 
permit-imprint contract pieces: manifest information for PostalOne! 
customers using the Electronic Verification System (eVS) and, for other 
PostalOne! customers, barcodes of mailer-prepared receptacles in the 
GBS Dispatch system. See id. For PC Postage contract pieces, the Postal 
Service would determine destination-country information from a 
disaggregated National Meter Account Tracking System (NMATS) report 
containing activity by individual contract and product. See id.
    Rationale and impact. The Postal Service states that, under the 
current methodology, certain country-level detail cannot be obtained 
directly and that approximations, which may contain sampling error or 
be imprecise, are used instead. See id. at 4. According to the Postal 
Service, such error and imprecision affect analyses of negotiated 
service agreements (NSAs), which analyses rely on country-level detail. 
See id. The Postal Service asserts that its proposed methodology could 
``be used for more precise analyses of individual

[[Page 42670]]

NSAs'' and would ``eliminate the impact of sampling error and GBS 
approximations,'' and would be expected ``to have equal or improved 
country-level data quality.'' Id. at 5-6.
    The Postal Service states that its proposal would not directly 
affect ``the national totals of outbound international contract mail 
pieces reported in RPW.'' Id. at 5. However, the Postal Service expects 
that the proposed methodology ``would change the level of census weight 
for individual countries . . . .'' Id. at 6. As a result, the Postal 
Service states that the national totals for products that contain non-
census weight (primarily FCMI and FCPIS Retail) would be indirectly 
affected ``because all census and sample data are controlled to GBS 
Dispatch weight for each expansion stratum.'' Id.
    The Postal Service details these indirect effects in a version of 
the international outbound portion of the FY 2022 Q2 YTD RPW report 
showing data resulting from use of the proposed methodology compared to 
data resulting from use of the current methodology. See Petition, 
Attachment A at 1; Proposal Three at 6-7. According to the Postal 
Service, ``[t]he indirect effects of the proposal would cause small 
changes to Outbound First-Class Mail International (1.6 percent 
decrease in revenue and 2.2 percent decrease in volume) and First-Class 
Package International Service Retail (0.5 percent increase in revenue 
and 0.6 percent increase in volume).'' Proposal Three at 7 (emphasis in 
original). The Postal Service also states that ``[o]ther international 
categories would have smaller indirect effects: US. [sic] Postal 
Service Mail, Free Mail, and International Ancillary Services.'' Id. 
(emphasis in original). Finally, the Postal Service states that 
``[o]verall, outbound international revenue and volume for Quarters 1 
and 2 of FY 2022 would be reduced by 0.2 percent and 1.3 percent, 
respectively.'' Id. (footnote omitted).

III. Notice and Comment

    The Commission establishes Docket No. RM2022-9 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at https://www.prc.gov. 
Interested persons may submit comments on the Petition and Proposal 
Three no later than August 12, 2022. Pursuant to 39 U.S.C. 505, Jennaca 
D. Upperman is designated as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2022-9 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Three), filed July 8, 2022.
    2. Comments by interested persons in this proceeding are due no 
later than August 12, 2022.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Jennaca D. 
Upperman 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 order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2022-15228 Filed 7-15-22; 8:45 am]
BILLING CODE 7710-FW-P