[Federal Register Volume 74, Number 122 (Friday, June 26, 2009)]
[Notices]
[Pages 30646-30647]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-15135]
[[Page 30646]]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2009-26 and CP2009-36; Order No. 228]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently filed Postal Service
request to add Direct Entry Parcels (DEP) Contracts, International
Return Service, and Harmonization Service to the Competitive Product
List. The Postal Service has also filed a related contract. This notice
addresses procedural steps associated with these filings.
DATES: Comments are due June 29, 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. Introduction
On June 11, 2009, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Direct
Entry Parcels (DEP) Contracts, International Return Service, and
Harmonization Service to the Competitive Product List.\1\ The Postal
Service indicates that Governors' Decision No. 09-7, filed June 10,
2009, establishes prices and classifications not of general
applicability for the three products.\2\ The Request has been assigned
Docket No. MC2009-26.
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\1\ Request of the United States Postal Service to Add Direct
Entry Parcels Contracts, International Return Service, and
Harmonization Service to the Competitive Products List, and Notice
of Filing (Under Seal) of Contract and Enabling Governors' Decision,
June 11, 2009 (Request).
\2\ Governors' Decision No. 09-10, filed June 10, 2009,
establishes prices and classifications not of general applicability
for Direct Entry Parcels Contracts, International Return Service and
Harmonization Service Offered with Customized Agreements.
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The Postal Service contemporaneously filed a DEP contract related
to the new products pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR 3015.5.
Request at 1. The contract has been assigned Docket No. CP2009-36.
Request. The Request incorporates (1) A statement of supporting
justification as required by 39 CFR 3020.32; (2) Governors' Decision
No. 09-7 authorizing the new products, which include certification of
the vote, requested changes to the Mail Classification Schedule (MCS)
product list, and certification of the pricing formulas for compliance
with 39 U.S.C. 3633(a); (3) price formulas and related information for
DEP contracts, International Return Service and Harmonization Service
Offered with Customized Agreements; and (4) Certification of Compliance
with 39 U.S.C. 3633(a) for contract prices and ancillary services.\3\
Substantively, the Request seeks to add the Direct Entry Parcels
Contracts, International Return Service, and Harmonization Service to
the Competitive Product List. Id. at 1.
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\3\ Attachment 1 to the Request consists of the Statement of
Supporting Justification. Attachment 2 is the Decision of the
Governors of the United States Postal Service on the Establishment
of Prices and Classifications for Direct Entry Parcels Contracts,
International Return Service Offered with Customized Agreements and
Harmonization Service Offered with Customized Agreements (Governors'
Decision No. 09-7). The Governors' Decision includes Attachment A-1,
requested changes in the MCS product list; Attachment A-2, a
Description of International Service Offered with Customized
Agreements; Attachment A-3, Description of Harmonization Service
Offered with Customized Agreements; Attachment B-1 Formulas for
Prices Under Applicable Direct Entry Parcels Contracts; Attachment
B-2, Formulas for Prices Under International Return Service Offered
with Customized Agreements; Attachment B-3, Formulas for Prices
Under Harmonization Service Offered with Customized Agreements;
Attachment C-1, Analysis of the Formulas for Prices Under Direct
Entry Parcels Contracts; Attachment C-2, Formulas for Prices Under
International Return Service Offered with Customized Agreements;
Attachment C-3, Formulas for Prices Under Harmonization Service
Offered with Customized Agreements; and Attachment D, Certification
as to the Formulas for Prices Offered Under Applicable Direct Entry
Parcels Contracts, International Return Service Offered with
Customized Agreements, and Harmonization Service Offered with
Customized Agreements.
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In the statement of supporting justification, Frank Cebello, Global
Business Management, asserts that the service to be provided under the
contract will cover its attributable costs, make a positive
contribution to institutional costs, and increase contribution toward
the requisite 5.5 percent of the Postal Service's total institutional
costs. Id., Attachment 1. Thus, Mr. Cebello contends there will be no
issue of subsidization of competitive products by market dominant
products as a result of this contract. Id.
Related contract. A redacted version of the instant contract is
included with the Request. The Postal Service represents that the
contract is consistent with 39 U.S.C. 3633(a), 39 CFR 3015.5 and 39 CFR
3015.7. See id., Attachment 2. The DEP contract includes International
Return Service and Harmonization Service as optional features which
reflect the proposed MCS language in Attachments A-2 and A-3 of the
Governors' Decision, respectively.\4\ DEP contracts provide for mail
acceptance within the United States, transportation to a receiving
country of parcels bearing the appropriate foreign indicia,
transportation to customs within the receiving country, and customs
clearance and prepayment of customs duties and taxes to the receiving
country. The Postal Service explains that International Return Service
provides for the return of refused or undeliverable items. It states
that Harmonization Service offers review of outbound items by a
licensed customs broker and the broker's assignment of Harmonized
Tariff Schedule codes to facilitate assessment of customs duties.
Request at 2-3. The Postal Service notes that the latter two services
will only be available through customized agreements, in particular
through DEP contracts similar to the instant contract.
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\4\ The Postal Service states that the Governors' Decision
establishes prices and classifications for Direct Entry Parcels
Contracts. In addition, the Governors' Decision also establishes
prices and classifications for both Harmonization Service and
International Return Service which serve as ancillary services for
the parcel service offered for DEP contracts. The Postal Service
intends the complement of services offered for DEP to include
Harmonization Service and International Return Service.
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The contract becomes effective within 30 days after the Postal
Service notifies the customer that it has received all required reviews
and the Commission has provided all necessary regulatory approvals. The
term of the agreement is one year from the effective date.
The Postal Service filed much of the supporting materials,
including Governors' Decision 09-7, and financial information,
including analysis of the instant contract in redacted versions and
under seal. In its Request, the Postal Service maintains that the
contracts and related financial information, including the customers'
names and the accompanying analyses that provide prices, terms,
conditions, and financial projections, should remain under seal. Id. at
3-4.
The Postal Service requests that the Commission approve this DEP
contract, as well as any subsequent functionally equivalent DEP
contracts, as one product on the Competitive Product List. Id. at 1-2.
The Request advances reasons why the DEP contracts as described in the
proposed MCS language are in conformity with the requirements of 39
U.S.C. 3642 as competitive products. Among other things, the Postal
Service asserts the DEP contracts are intended for merchandise exempt
from the Private Express Statutes; that that Postal Accountability and
Enhancement Act
[[Page 30647]]
classifies bulk international mail as competitive; and that classifying
the DEP contracts as competitive is consistent with Commission
precedent. It contends that even though the senders of DEP items may
mail individual pieces, the contract customer has committed to
compensate the Postal Service for a bulk volume of DEP items. The
Postal Service also notes that Direct Entry Parcels, Harmonization, and
International Return Services are contractual services not available to
individual retail customers. Id. at 4-5.
II. Notice of Filings
The Commission establishes Docket Nos. MC2009-26 and CP2009-36 for
consideration of the Request to add Direct Entry Parcels Contracts,
International Return Service, and Harmonization Service to the
Competitive Product List, and the related DEP Contract, respectively.
In keeping with practice, these dockets are addressed on a consolidated
basis for purposes of this order; however, future filings should be
made in the specific docket in which issues being addressed pertain.
Interested persons may submit comments on whether the Postal
Service's filings in the captioned dockets are consistent with the
policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, and 39 CFR
3020 subpart B. Comments are due no later than June 29, 2009. The
public portions of these filings can be accessed via the Commission's
Web site (http://www.prc.gov).
The Commission appoints Emmett Rand Costich to serve as Public
Representative in these dockets.
III. Ordering Paragraphs
It is Ordered:
1. The Commission establishes Docket Nos. MC2009-26 and CP2009-36
for consideration of the matters raised in each docket.
2. Pursuant to 39 U.S.C. 505, Emmett Rand Costich 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 June 29, 2009.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Steven W. Williams,
Secretary.
[FR Doc. E9-15135 Filed 6-25-09; 8:45 am]
BILLING CODE 7710-FW-P