[Federal Register Volume 89, Number 75 (Wednesday, April 17, 2024)]
[Notices]
[Pages 27467-27468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08163]


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POSTAL REGULATORY COMMISSION

[Docket No. CP2024-230; Order No. 7040]


Competitive Product Changes

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
document with the Commission concerning changes in classifications of 
general applicability for competitive products. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: May 9, 2024.

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. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On April 9, 2024, pursuant to 39 CFR 3035.104, the Postal Service 
filed notice announcing its intention to remove rates of general 
applicability for Vendor Assisted Electronic Money Transfers from the 
International Money Transfer Service (IMTS)--Outbound product under 
section 2620 of the Mail Classification Schedule (MCS), effective July 
14, 2024.\1\
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    \1\ United States Postal Service Notice of Changes in 
Classifications of General Applicability for Competitive Products, 
April 9, 2024, at 1 (Notice).
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II. Contents of Filing

    The Postal Service states that the IMTS--Outbound product includes 
an Electronic Money Transfer service that enables customers to make 
payments or transfer funds to individuals or firms in foreign 
destinations. Notice at 2. Currently, Electronic Money Transfers are 
available through the Sure Money (DineroSeguro) service described in 
International Mail Manual section 372.\2\ In July 2022, the Postal 
Service increased prices for Sure Money (DineroSeguro) by about 305 
percent,\3\ which led to a significant decline in Sure Money 
(DineroSeguro) transactions and in turn, a sharp decline in IMTS--
Outbound volume between Fiscal Year (FY) 2022 and FY 2023.\4\ Notice at 
2. Due to this decline, the Postal Service intends to terminate the 
Sure Money (DineroSeguro) service, and hence the removal of prices for 
Vendor Assisted Electronic Money Transfers from MCS section 2620. Id.
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    \2\ See id.; see also International Mail Manual section 372, 
Sure Money (DineroSeguro), available at https://pe.usps.com/text/imm/immc3_019.htm.
    \3\ Docket No. CP2022-62, Order Approving Changes in Rates and 
Classifications of General Applicability for Competitive Products, 
June 8, 2022, at 3, 7 (Order No. 6195).
    \4\ Docket No. ACR2023, United States Postal Service, Annual 
Compliance Report, December 29, 2023, at 104.
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    The Postal Service states that the proposed changes would not 
result in the violation of any provisions of 39 U.S.C. 3633, because 
these changes represent a major step towards termination of the IMTS--
Outbound product, which has been non-compensatory for several years and 
did not cover its attributable cost in FY 2023.\5\ The Postal Service 
believes that terminating Sure Money (DineroSeguro) would reduce the 
IMTS--Outbound product's overall losses. Notice at 3. In addition, Sure 
Money (DineroSeguro) generates only a small amount of revenue in 
relation to the total revenue for Competitive products. Id. For these 
reasons, terminating Sure Money (DineroSeguro) would not impair the 
ability of Competitive products to collectively cover an appropriate 
share of the institutional costs of the Postal Service. Id.
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    \5\ Id. at 3 (citing Docket No. ACR2023, Annual Compliance 
Determination, March 28, 2024, at 68-69).
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    The Postal Service further states that the likely impact of the 
proposed changes on users of the product and on competitors would be 
limited, because competitors offer international electronic money 
transfer services for fees that are substantially lower than the fees 
that the Postal Service charges for Sure Money (DineroSeguro), and the 
Postal Service's share of the market for services that are similar to 
Sure Money (DineroSeguro) is very small.\6\ In addition, the OIG noted 
that most purchases of Sure Money (DineroSeguro) occurred in a 
relatively small number of Post Offices. Notice at 4-5 (citing OIG Sure 
Money Report at 3-4, 7). The Postal Service states that if it exits 
from the market, that will leave competitors with opportunities to pick 
up customers that are currently served by the Postal Service. Id. at 5.
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    \6\ Notice at 4 (citing United States Postal Service, Office of 
Inspector General, Report No. 22-167-R23, Sure Money--International 
Electronic Money Transfer Service, May 12, 2023, at 5, Table 2, 
available at https://www.uspsoig.gov/reports/audit-reports/sure-money-process-and-performance (OIG Sure Money Report); The World 
Bank, Remittance Prices Worldwide Quarterly: An Analysis of Trends 
in Cost of Remittance Services, Issue 47, September 2023, at 11, 
available at https://remittanceprices.worldbank.org; Congressional 
Research Service, Remittances: Background and Issues for the 118th 
Congress, Updated May 10, 2023, at PDF page 2 of 16, available at 
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjjsr21z6GFAxWxrokEHVdTDfsQFnoECDkQAQ&url=https%3A%2F%2Fcrsreports.congress.gov%2Fproduct%2Fpdf%2FR%2FR43217%2F16&usg=AOvVaw3k6EjZpOhN_Gd8a81BjC_3&opi=89978449).
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    With the Notice, the Postal Service attaches the Governors' 
Decision that establishes the changes and includes a statement of 
explanation and justification for the changes to the MCS that are the 
subject of this docket, as well as a certification of the vote. See 
Notice at 1, Attachment 1. The Postal Service also attaches proposed 
changes to the MCS in legislative format. See Notice at 1, Attachment 
2.

III. Commission Action

    The Commission establishes Docket No. CP2024-230 for consideration 
of matters raised by the Notice.
    The Commission invites comments on whether the Postal Service's 
filing is consistent with 39 U.S.C. 3632 and 3633 and 39 CFR part 3035. 
Comments are due no later than May 9, 2024. The public portions of the 
filing can be accessed via the Commission's website (http://www.prc.gov).
    The Commission appoints Mallory L. Smith to serve as Public 
Representative in this docket, pursuant to 39 U.S.C. 505.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. CP2024-230 for 
consideration of matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Mallory L. Smith is appointed to 
serve as an officer of the Commission to represent the interests of the 
general public in this proceeding (Public Representative).
    3. Comments are due no later than May 9, 2024.

[[Page 27468]]

    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-08163 Filed 4-16-24; 8:45 am]
BILLING CODE 7710-FW-P