[Federal Register Volume 87, Number 222 (Friday, November 18, 2022)]
[Notices]
[Pages 69350-69351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25179]



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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 and classifications of general 
applicability for competitive products.

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

DATES: Effective date: January 22, 2023.

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

SUPPLEMENTARY INFORMATION: On November 9, 2022, 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). Mail Classification Schedule language containing the new 
prices and classification changes can be found at www.prc.gov.

Ruth Stevenson,
Chief Counsel, Ethics and Legal Compliance.

Decision of the Governors of the United States Postal Service on 
Changes in Rates and Classifications of General Applicability for 
Competitive Products (Governors' Decision No. 22-6)

    November 9, 2022

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 prices and classifications of general applicability for the 
Postal Service's competitive products. The changes are described 
generally below, with a detailed description of the changes in the 
Postal Service's associated draft Mail Classification Schedule change 
document. That document contains 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 10.4 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 and classification changes are in accordance with 39 U.S.C. 
3632-3633 and 39 CFR 3035.102 and 104.

I. Domestic Products

A. Priority Mail Express

    Overall, the Priority Mail Express price change represents a 6.6 
percent increase. The Commercial Base and Commercial Plus price 
categories, which have had equivalent prices since 2016, will be 
consolidated into one Priority Mail Express Commercial price category 
for 2023. Also new for 2023, the zoned prices for the existing ``Local, 
1, 2'' Zone will be differentiated. The Local zone will be eliminated, 
and separate prices will be established for Zone 1 and Zone 2. No other 
structural changes are proposed. Dimensional weighting, which was 
introduced for all zones in 2019, will continue in 2023.
    Retail prices will increase an average of 6.7 percent. The price 
for the Retail Flat Rate Envelope, a significant portion of all 
Priority Mail Express volume, will increase to $28.75, with the Legal 
Size and Padded Flat Rate Envelopes priced at $28.95 and $29.45, 
respectively.
    The newly consolidated Commercial price category will increase 6.0 
percent on average. Commercial prices will, on average, reflect a 12.5 
percent discount off of Retail prices. Nonstandard Fees (NSFs) are 
changing for our full network products for 2023. Priority Mail Express 
will see an increase in NSFs, while ground products will see a price 
decrease in NSFs.

B. Priority Mail

    On average, the Priority Mail prices will be increased by 5.5 
percent. Similar to Priority Mail Express, the Commercial Base and 
Commercial Plus price categories, which have had equivalent prices 
since 2019, will be consolidated into one Priority Mail Commercial 
price category for 2023. Dimensional weighting, which was extended to 
all zones in 2019, will continue in 2023. New for 2023, the Priority 
Mail Regional Rate Boxes will be eliminated because of low usage and to 
avoid product redundancies. Also new for 2023, the zoned prices for the 
existing ``Local, 1, 2'' Zone will be differentiated. The Local zone 
will be eliminated, and separate prices will be established for Zone 1 
and Zone 2. No other structural changes are proposed.
    Retail prices will increase by an average of 6.8 percent. Retail 
Flat Rate Box prices will be: Small, $10.20; Medium, $17.10; Large, 
$22.80 and Large APO/FPO/DPO, $21.20.
    Thus, the Large APO/FPO/DPO Flat Rate Box will be $1.60 less than 
the Large Flat Rate Box. The regular Flat Rate Envelope will be priced 
at $9.65, with the Legal Size and Padded Flat Rate Envelopes priced at 
$9.95 and $10.40, respectively.
    The newly consolidated Commercial price category will increase by 
3.6 percent on average. Commercial prices will, on average, reflect a 
20.1 percent discount off of Retail prices. Nonstandard Fees (NSFs) are 
changing for our full network products for 2023. Priority Mail will see 
an increase in NSFs, while ground products will see a price decrease in 
NSFs.

C. Parcel Select

    On average, Parcel Select prices as a whole will increase 5.1 
percent. Prices for destination-entered non-Lightweight Parcel Select, 
the Postal Service's bulk ground shipping product, will increase 5.1 
percent on average. For destination delivery unit (DDU) entered 
parcels, the average price increase is 5.6 percent. For destination 
sectional center facility (DSCF) destination entered parcels, the 
average price increase is 4.7 percent. For destination network 
distribution center (DNDC) parcels, the average price increase is 5.0 
percent. Prices for Parcel Select Lightweight will increase by 6.1 
percent on average. Prices for USPS Connect Local, introduced in 2022, 
will remain unchanged for 2023. Finally, Parcel Select Ground, which is 
slated to be eliminated later in 2023, will see very minor price 
adjustments in certain cells, with a zero percent average change. 
Dimensional weighting, which was introduced for all zones in 2019, will 
continue in 2023.
    New for 2023, the zoned prices for the existing ``Local, 1, 2'' 
Zone will be differentiated. The Local zone will be eliminated, and 
separate prices will be established for Zone 1 and Zone 2. No other 
structural changes are proposed. Nonstandard Fees (NSFs) are changing 
for our full network products for 2023. Ground products will see a 
price decrease in NSFs.

D. First-Class Package Service

    First-Class Package Service (FCPS) is currently positioned as a 
lightweight (less than one pound) offering primarily used by businesses 
for fulfillment purposes. Later in 2023, the Postal Service plans to 
enhance and expand

[[Page 69351]]

the FCPS product up to seventy pounds, but for January 2023, FCPS will 
remain only a lightweight offering. Overall, FCPS prices will increase 
7.8 percent on average, with a 6.9 percent increase for FCPS-Retail and 
a 8.0 percent increase for FCPS-Commercial. New for 2023, the zoned 
prices for the existing ``Local, 1, 2'' Zone will be differentiated. 
The Local zone will be eliminated, and separate prices will be 
established for Zone 1 and Zone 2. No other structural changes are 
proposed. Nonstandard Fees (NSFs) are changing for our full network 
products for 2023. Ground products will see a price decrease in NSFs.

F. USPS Retail Ground

    USPS Retail Ground, which is also slated for removal later in 2023 
as part of the Postal Service's expansion of FCPS and product 
simplification efforts, will remain on the competitive product list in 
January 2023. USPS Retail Ground prices will increase 6.4 percent 
overall on average. New for 2023, the zoned prices for the existing 
``Local, 1, 2'' Zone will be differentiated. The Local zone will be 
eliminated, and separate prices will be established for Zone 1 and Zone 
2. No other structural changes are proposed. Nonstandard Fees (NSFs) 
are changing for our full network products for 2023. Ground products 
will see a price decrease in NSFs.

G. Domestic Extra Services

    Premium Forwarding Service (PFS) prices will increase 6.5 percent 
on average in 2023. The retail counter enrollment fee will increase to 
$25.45. The online enrollment option, introduced in 2014, will increase 
to $23.40. The weekly reshipment fee will increase to $25.45. PFS 
Local, which was introduced in 2019 for P.O. Box customers, will have 
an increased reshipment fee of $25.45. Prices for Adult Signature 
service will increase to $9.05 for the basic service and $9.35 for the 
person-specific service. Address Enhancement Service prices will remain 
the same for 2023. Competitive Post Office Box prices will be 
increasing 6.5 percent on average, within the existing price ranges. 
Package Intercept Service will increase to $17.00. The Pickup On Demand 
fee will increase to $26.50 for 2023. Premium Data Retention and 
Retrieval Service (USPS Tracking Plus), which was introduced in 2020, 
will not see a price change in 2023. New for 2023, the Postal Service 
is introducing a new Label Delivery Service under the Competitive 
Ancillary Services product, whereby residential and business customers 
can request return label delivery for a $1.25 fee for certain products.

II. International Products

A. Expedited Services

    International expedited services include Global Express Guaranteed 
(GXG) and Priority Mail Express International (PMEI). Overall, GXG 
prices will rise by 4.9 percent, and PMEI will be subject to an overall 
6.0 percent increase. Commercial Plus prices will be equivalent to 
Commercial Base.

B. Priority Mail International

    The overall increase for Priority Mail International (PMI) will be 
6.0 percent. Commercial Plus prices will be equivalent to Commercial 
Base. For Priority Mail Express International, weight-rated items 
tendered at retail counters will no longer be offered at prices 
equivalent to Priority Mail International for certain destinations and 
weight steps subject to certain requirements and conditions. The zoned 
prices based on origin ZIP Code for Priority Mail International 
destined to Canada will be collapsed into a single country group for 
Priority Mail International to Canada, and the related fee for the 
International Service Center (ISC) zone chart for Priority Mail 
International pieces destined to Canada will be eliminated.

C. International Priority Airmail and International Surface Air Lift

    Published prices for International Priority Airmail (IPA) and 
International Surface Air Lift (ISAL) will increase by 3.5 percent and 
12.0 percent, respectively.

D. Airmail M-Bags

    The published prices for Airmail M-Bags will increase by 6.4 
percent.

E. First-Class Package International ServiceTM

    The overall increase for First-Class Package International Service 
(FCPIS) prices will be 6.5 percent. Commercial Plus prices will be 
equivalent to Commercial Base.

F. International Ancillary Services and Special Services

    Prices for several international ancillary services will be 
increased, with an overall increase of 12.2 percent.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on January 22, 2023. 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/
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Roman Martinez IV,
Chairman, Board of Governors.

UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS

CERTIFICATION OF GOVERNORS' VOTE ON GOVERNORS' DECISION NO. 22-6

    Consistent with 39 U.S.C. 3632(a), I hereby certify that, on 
November 9, 2022, the Governors voted on adopting Governors' Decision 
No. 22-6, and that a majority of the Governors then holding office 
voted in favor of that Decision.

Date: November 9, 2022.
/s/
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Michael J. Elston,
Secretary of the Board of Governors.

[FR Doc. 2022-25179 Filed 11-17-22; 8:45 am]
BILLING CODE 7710-12-P