[Federal Register Volume 75, Number 168 (Tuesday, August 31, 2010)]
[Notices]
[Pages 53353-53355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21693]
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POSTAL REGULATORY COMMISSION
[Docket Nos. MC2010-34 and CP2010-95; Order No. 517]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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[[Page 53354]]
SUMMARY: The Commission is noticing a recently-filed Postal Service
request to add Inbound Competitive Multi-Service Agreements with
Foreign Postal Operators to the competitive product list. This notice
addresses 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 CONTACT 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
I. Notice of Filing
III. Ordering Paragraphs
I. Introduction
On August 13, 2010, the Postal Service filed a request pursuant to
39 U.S.C. 3642 and 39 CFR 3020.30 et seq., to add Inbound Competitive
Multi-Service Agreements with Foreign Postal Operators (Multi-Service
Agreements) to the competitive product list.\1\ The Postal Service
asserts that Multi-Service Agreements are a competitive product ``not
of general applicability'' within the meaning of 39 U.S.C. 3632(b)(3).
This Request has been assigned Docket No. MC2010-34.
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\1\ Request of United States Postal Service to Add Inbound
Competitive Multi-Service Agreements with Foreign Postal Operators
to the Competitive Product List, and Notice of Filing (Under Seal)
of Enabling Governors' Decision and Negotiated Service Agreement,
August 13, 2010 (Request).
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The Postal Service contemporaneously gave notice, pursuant to 39
U.S.C. 3632(b)(3) and 39 CFR 3015.5, that the Governors have
established prices and classifications not of general applicability for
Inbound Competitive Multi-Service Agreements with Foreign Postal
Operators in Governors' Decision No. 10-3.\2\ Id. at 1-2. Additionally,
the Postal Service filed the first agreement (TNT Agreement) with
Koninklijke TNT Post BV and TNT Post Pakketservice Benelux BV,
collectively ``TNT Post''. The TNT Agreement governs rates for Inbound
Air Parcel Post (Air CP), Surface Parcel Post (Surface CP) and Express
Mail Service (EMS), along with ancillary services. Id. at 4. The TNT
Agreement has been assigned Docket No. CP2010-95.
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\2\ See Request, Attachment 2.
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In support of its Request, the Postal Service filed five
attachments as follows:
1. Attachment 1--Statement of Supporting Justification required by
39 CFR 3020.32;
2. Attachment 2--a redacted copy of Governors' Decision No. 10-3,
which establishes prices and classifications for Inbound Competitive
Multi-Service Agreements with Foreign Postal Operators, proposed
descriptive Mail Classification Change (MCS) language, pricing formulas
and certification of prices, and certification of the Governors' vote;
3. Attachment 3--a redacted copy of the TNT Agreement;
4. Attachment 4--a certified statement required by 39 CFR
3015.5(c)(2); and
5. Attachment 5--an application for non-public treatment of
materials to maintain redacted portions of the agreement and supporting
documents under seal.
The Postal Service states that the Multi-Service Agreements create
rates for competitive inbound International Mail exchanged between
postal operators. This would include traditional mail services such as
Air CP and EMS, as well as ancillary services. Id. at 3.
The Postal Service asserts that this product will permit the Postal
Service to create pricing for any combination of products in an
equivalent agreement that meets the pricing criteria of the Governors'
Decision. Id. at 3.
The Postal Service states that the classification language also
covers nontraditional services exchanged among postal operators, e.g.,
inbound direct entry, and other services offered by a foreign postal
operation to customers under terms other than those not commonly used,
but which are processed and delivered similar to an existing service
within the Postal Services network. Id. at 3-4. The Postal Service
indicates that the proposed classification language would permit the
establishment of unique operating terms and conditions that modify the
default arrangements of the UPU. Id. at 4.
Related agreement. The Postal Service asserts that the terms of the
TNT Agreement conform to the proposed MCS language. Id. The agreement,
which is scheduled to commence October 1, 2010, covers two one-year
periods with different rates for the second period. Id. The Postal
Service also identifies various terms included on the TNT Agreement,
e.g., performance metrics and electronic settlement and payment
processes and incentives for optional activities. Id. at 4-5.
In the Statement of Supporting Justification, Lea Emerson,
Executive Director, International Postal Affairs, 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. Additionally,
the Postal Service contends that its filings demonstrate compliance
with 39 U.S.C. 3642(b). Ms. Emerson also states that Multi-Service
Agreements are consistent with the Commission's finding in Order No. 43
that Surface CP at Non-UPU Rates, EMS and Air CP be considered
competitive products. Id.
The Statement of Supporting Justification addresses the
requirements of 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., e.g., that
the product is properly classified as competitive and is not subject to
the Private Express Statutes. Id. at 5-6, Attachment 1. The Postal
Service asserts that all requisite requirements have been satisfied.
Id. at 7.
Joseph Moeller, Manager, Regulatory Reporting and Cost Analysis,
Finance Department, certifies that the TNT Agreement complies with 39
U.S.C. 3633(a). Id., Attachment 2. He asserts that the prices for the
TNT Agreement ``should cover its attributable costs and preclude the
subsidization of competitive products by market dominant products.''
Id. The Postal Service contends that the proposed classification would
enhance its pricing flexibility and ease administrative burdens by
enabling it to negotiate multiple inbound competitive services at once
rather than filing separate agreements for regulatory review. Id. at 7.
The Postal Service requests that Inbound Competitive Multi-Service
Agreements with Foreign Postal Operators be added as a new product to
the competitive product list. Id. at 8. It proposes that additional
functionally equivalent contracts be added to the competitive product
list as price categories under the Inbound Competitive Multi-Service
Agreements with Foreign Postal Operators listing. Id. at 6.
II. Notice of Filings
The Commission establishes Docket Nos. MC2010-34 and CP2010-95 for
consideration of the Request pertaining to the proposed Inbound
Competitive Multi-Service Agreements with Foreign
[[Page 53355]]
Postal Operators, and the related rates and classifications,
respectively. In keeping with existing 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 August 31, 2010. The
public portions of these filings can be accessed via the Commission's
Web site (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. 2010-21693 Filed 8-30-10; 8:45 am]
BILLING CODE 7710-FW-S