[Federal Register Volume 75, Number 166 (Friday, August 27, 2010)]
[Notices]
[Pages 52786-52788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21329]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2010-35, R2010-5, R2010-6; Order No. 518]
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 Inbound Market Dominant Multi-Service Agreements with
Foreign Postal Operators 1 to the market dominant product list. This
notice addresses
[[Page 52787]]
procedural steps associated with the filing.
DATES: Comments are due: August 31, 2010.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at http://www.prc.gov. Commenters who cannot submit their
views electronically should contact the person identified in the FOR
FURTHER INFORMATION section by telephone for advice on alternatives to
electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
[email protected] or 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Notice of Filing
III. Ordering Paragraphs
I. Introduction
On August 13, 2010, the Postal Service filed a request pursuant to
39 U.S.C. 3622(c)(10) and 3642, and 39 CFR 3010.40 et seq. and 3020.30
et seq. to add Inbound Market Dominant Multi-Service Agreements with
Foreign Postal Operators 1 (Multi-Service Agreements 1) to the market
dominant product list.\1\ This Request has been assigned Docket No.
MC2010-35.
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\1\ Request of United States Postal Service to Add Inbound
Market Dominant Multi-Service Agreements with Foreign Postal
Operators to the Market Dominant Product List, Notice of Type 2 Rate
Adjustments, and Notice of Filing Two Functionally Equivalent
Agreements (Under Seal), August 13, 2010 (Request).
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The Postal Service contemporaneously gave notice, pursuant to 39
CFR 3010.40 et seq. and 39 CFR 3015.5, that the Governors have
authorized Type 2 rate adjustments for negotiated service agreements in
accordance with 39 CFR 3010.40 et seq. that will result generally in
more remunerative rates than the default rates set by the Universal
Postal Union (UPU) Acts for inbound Letter Post items. Id.
Additionally, the Postal Service filed two functionally equivalent
Multi-Service Agreements 1 described as follows:
1.The Strategic Bilateral Agreement Between United States Postal
Service and Koninklijke TNT Post BV and TNT Post Pakketservice Benelux
BV, collectively ``TNT Post'' (TNT Agreement); and
2.China Post Group--United States Postal Service Letter Post
Bilateral Agreement (CPG Agreement).
The Postal Service requests that the two Multi-Service Agreements 1
be listed along with any subsequent functionally equivalent agreements
as part of a single product grouping on the market dominant product
list. Id. at 2. The TNT Agreement and CPG Agreement have been assigned
Docket Nos. R2010-5 and R2010-6, respectively.
In support of its Request, the Postal Service filed four
attachments as follows:
1. Attachment 1--proposed Mail Classification Schedule (MCS)
language for Inbound Market Dominant Multi-Service Agreements with
Foreign Postal Operators;
2. Attachment 2--Statement of Supporting Justification required by
39 CFR 3020.32;
3. Attachments 3A and 3B--redacted copies of each agreement; and
4. Attachment 4--an application for non-public treatment of
materials to maintain redacted portions of the agreements and
supporting documents under seal.
Related agreements. Parties to the TNT Agreement are the Postal
Service and subsidiaries of the postal operator for the Netherlands.
The instant agreement covers inbound Letter Post in the form of
letters, flats, small packets, bags, containers, and International
Registered Mail service for Letter Post. Id. at 4. It also includes a
placeholder for additional ancillary services at rates yet to be
determined. Id.
The CPG Agreement with the postal operator of the People's Republic
of China includes the same inbound Letter Post items, plus delivery
confirmation scanning with Letter Post small packets. Id. The scheduled
effective date for both agreements is October 1, 2010. Id. at 3.
The Postal Service states its filings comply with 39 CFR 3010.40 et
seq. for the implementation of the negotiated service agreements. The
Request identifies various performance attributes associated with the
agreements, e.g., electronic settlement and payment processes. Id. at
5-6.
Under 39 CFR 3010.43, the Postal Service is required to submit a
data collection plan. In response, the Postal Service indicated that it
intends to report information on these agreements through its Annual
Compliance Report. While indicating its willingness to provide
information on mail flows within the annual compliance review process,
the Postal Service proposes that no special data collection plan be
established for these agreements. With respect to performance
measurement, it requests that the Commission exempt these agreements
from separate reporting requirements under 39 CFR 3055.3. Id. at 8-9.
Functional equivalency. The Request advances reasons why the
agreements are functionally equivalent to one another and contain the
same attributes and methodology. Id. at 12-13. The Postal Service
asserts that both agreements fit within the proposed MCS language, are
with foreign postal operators, conform to a common description, and
include similar terms and conditions.
The Postal Service identifies specific terms that distinguish the
agreements from one another, all of which are highlighted in the
Request. Id. at 12-14. These include electronic settlement,
termination, dispute resolution, and other differences. The Postal
Service contends that the agreements nonetheless are functionally
equivalent to each other and ``[t]he Postal Service does not consider
that the specified differences affect either the fundamental service
the Postal Service is offering or the fundamental structure of the
contracts.'' Id. XI.In its Request, the Postal Service maintains that
certain portions of the agreements and related financial information
should remain under seal. Id., Attachment 4.
In the Statement of Supporting Justification, Lea Emerson,
Executive Director, International Postal Affairs, reviews the factors
of section 3622(c) and concludes, inter alia, that the revenues
generated will cover the attributable costs of the services offered
under the agreements and that the rates are preferable to default rates
set by the UPU. Id., Attachment 4, at 2-3. The Request also addresses
the requirements of 39 U.S.C. 3622 and 39 CFR 3020.30 et seq. Id. at
10-11; Attachment 4 at 5-9.
The Postal Service asserts its filings demonstrate compliance with
the statute. It requests that Inbound Market Dominant Multi-Service
Agreements With Foreign Postal Operators 1 be added to the market
dominant product list. Id. at 11-15.
II. Notice of Filing
The Commission establishes Docket Nos. MC2010-35, R2010-5 and
R2010-6 for consideration of the Request pertaining to the proposed
Inbound Market Dominant Multi-Service Agreements with Foreign Postal
Operators 1, and the related rates and classifications, 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
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Service's filings in the captioned dockets are consistent with the
policies of 39 U.S.C. 3622, 3642, or
39 CFR part 3010.40, and 39 CFR 3020 subpart B. Comments are due no
later than August 31, 2010. The public portions of these filings can be
accessed via the Commission's website (http://www.prc.gov).
The Commission appoints Paul L. Harrington to serve as Public
Representative in these dockets.
III. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket Nos. MC2010-35, R2010-5 and
R2010-6 for consideration of the issues raised in this docket.
2. Comments by interested persons in these proceedings are due no
later than August 31, 2010.
3. Pursuant to 39 U.S.C. 505, Paul L. Harrington is appointed to
serve as officer of the Commission (Public Representative) to represent
the interest of the general public in these proceedings.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-21329 Filed 8-26-10; 8:45 am]
BILLING CODE 7710-FW-S