[Federal Register Volume 74, Number 90 (Tuesday, May 12, 2009)]
[Notices]
[Pages 22185-22186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-11060]
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POSTAL REGULATORY COMMISSION
[Docket No. CP2009-29; Order No. 210]
Global Direct Contracts (MC2009-9) Agreement
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently filed Postal Service
request to add an additional Global Direct Contracts agreement to the
Competitive Product List. This notice addresses procedural steps
associated with this filing.
DATES: Comments are due May 13, 2009.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On May 1, 2009, the Postal Service filed a notice announcing that
it has entered into an additional Global Direct Contracts agreement.\1\
Global Direct Contracts provide a rate for mail acceptance within the
United States, transportation to a receiving country of mail that bears
the destination country's indicia and payment by the Postal Service of
the appropriate settlement charges to the receiving country. The Postal
Service believes the instant agreement is functionally equivalent to
previously submitted Global Direct agreements, and supported by the
Governors' Decision filed in Docket No. MC2008-7.\2\ The Postal Service
contends that the instant agreement should be included within the
Global Direct Contracts product.
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\1\ Notice of United States Postal Service Filing of
Functionally Equivalent Global Direct Contracts Negotiated Service
Agreement, May 1, 2009 (Notice).
\2\ Notice at 1-2. See Docket No. MC2008-7, Request of the
United States Postal Service To Add Global Plus 2 Negotiated Service
Agreements to the Competitive Product List, and Notice of Filing
(Under Seal) the Enabling Governors' Decision and Two Functionally
Equivalent Agreements, August 8, 2008; Attachment A is a redacted
version of Decision of the Governors of the United States Postal
Service on the Establishment of Prices and Classifications for
Global Direct, Global Bulk Economy, and Global Plus Contracts
(Governors' Decision No. 08-10), July 16, 2008. The Postal Service
also filed under seal an unredacted version of the Governors'
Decision in that docket.
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The instant agreement. The Postal Service filed the instant
agreement pursuant to 39 CFR 3015.5. In addition, the Postal Service
contends that the agreement is in accordance with PRC Order No. 153.\3\
It submitted the agreement and supporting material under seal, and
attached a redacted copy of the certified statement required by 39 CFR
3015.5(c)(2) to the Notice.
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\3\ PRC Order No. 153, Order Concerning Global Direct Contracts
Negotiated Service Agreements, December 19, 2008.
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The Notice provides the Postal Service's rationale for concluding
that the instant agreement is functionally equivalent to the agreements
filed in Docket Nos. CP2009-10, CP2009-11 and CP2009-18. Id. at 2-6.
The Postal Service states that the instant agreement fits within
the Mail Classification Schedule language for Global Direct Contracts,
and indicates that this agreement is set to expire 1 year after its
effective date which the Postal Service states will be within 30 days
of completion of all regulatory approvals.\4\
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\4\ The Postal Service notes this agreement has the same one-
year duration as the previously approved Global Direct Contract
agreements. Notice at 5.
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The Postal Service asserts that ``[i]n almost all substantive
respects'' the instant agreement ``resembles the contract in Docket No.
CP2009-11[.]'' Id. at 4. It notes that the agreement contains a volume
commitment, whereas the agreement in Docket No. CP2009-11 has a postage
commitment. Notwithstanding any differences in prices, foreign services
offered, foreign destinations, or volume or postage commitments, the
Postal Service contends that the instant agreement is functionally
equivalent to Global Direct agreements filed previously. Id. at 4-5. It
characterizes other differences from previous Global Direct agreements
as cosmetic or minor, having no effect on
[[Page 22186]]
the agreement's ``essential cost or market characteristics.'' Id. at 6.
Lastly, the Postal Service notes that the agreement contains
provisions that provide certain automatic price changes triggered by
objective, external factors. It argues that ``[t]he formulaic, pre-
established nature of such changes essentially removes them from the
area of Postal Service discretion.'' Id. at 5, n.8. Consequently, the
Postal Service asserts that such changes do not represent price changes
under 39 CFR 3015.5. Thus, in lieu of filing under rule 3015.5, it
``proposes to file such changes with the Commission on a notice-type
basis, without the expectation that the filings should lead to further
proceedings or review.'' Id.
II. Notice of Filing
The Commission establishes Docket No. CP2009-29 for consideration
of matters related to the agreement identified in the Postal Service's
Notice.
Interested persons may submit comments on whether the Postal
Service's agreement is consistent with the policies of 39 U.S.C. 3632,
3633, or 3642. Comments are due no later than May 13, 2009. The public
portions of these filings can be accessed via the Commission's Web site
(http://www.prc.gov).
The Commission appoints Michael J. Ravnitzky to serve as Public
Representative in the captioned filings.
It Is Ordered:
1. The Commission establishes Docket No. CP2009-29 for
consideration of the matters raised in this docket.
2. Pursuant to 39 U.S.C. 505, Michael J. Ravnitzky is appointed to
serve as officer of the Commission (Public Representative) to represent
the interests of the general public in these proceedings.
3. Comments by interested persons in these proceedings are due no
later than May 13, 2009.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-11060 Filed 5-11-09; 8:45 am]
BILLING CODE 7710-FW-P