[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Notices]
[Pages 69145-69146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28371]
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POSTAL REGULATORY COMMISSION
[Docket No. CP2011-27; Order No. 578]
Postal Rate Changes
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently-filed Postal Service
request to change rates for Inbound Air Parcel Post at Universal Postal
Union (UPU) rates. This notice addresses procedural steps associated
with this filing.
DATES: Comments are due: November 18, 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 FOR
FURTHER INFORMATION CONTACT by telephone for advice on alternatives to
electronic filing.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820 or [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Notice of Filing
IV. Ordering Paragraphs
I. Introduction
On November 3, 2010, the Postal Service filed a notice announcing
changes in rates not of general applicability for Inbound Air Parcel
Post at Universal Postal Union (UPU) rates effective January 1,
2011.\1\ The Notice incorporates by reference the explanation of
Inbound Air Parcel Post at UPU Rates and the mechanism for setting
rates contained in its request and supporting documentation filed in
Docket Nos. MC2010-11 and CP2010-11.\2\ Id. at 2.
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\1\ Notice of the United States Postal Service of Filing Changes
in Rates Not of General Applicability and Application for Non-Public
Treatment of Materials Filed Under Seal, November 3, 2010 (Notice).
\2\ See Docket Nos. MC2010-11 and CP2010-11, Request of the
United States Postal Service to Add Inbound Air Parcel Post at
Universal Postal Union (UPU) Rates to the Competitive Products List,
Notice of Establishment of Prices and Classifications Not of General
Applicability for Inbound Air Parcel Post at UPU Rates Established
in Governors' Decision No. 09-15, and Application for Non-Public
Treatment of Materials Filed Under Seal, November 17, 2009
(Request).
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In support of its Notice, the Postal Service filed four attachments
as follows:
1. Attachment 1--an application for non-public treatment of
materials to maintain redacted rates and supporting documents under
seal;
2. Attachment 2--a redacted copy of Governors' Decision No. 09-15
which establishes prices and classifications for Inbound Air Parcel
Post at UPU Rates, proposed Mail Classification Schedule language which
includes a description of Inbound Air Parcel Post at UPU Rates,
certification of prices in conformity with 39 U.S.C. 3633, an analysis
of the procedures for setting rates, and certification of the
Governors' vote;
3. Attachment 3--a redacted version of the new rates; and
4. Attachment 4--a certified statement required by 39 CFR
3015.5(c)(2) for Inbound Air Parcel Post at UPU rates.
[[Page 69146]]
II. Background
The Notice states that Governors' Decision No. 09-15 established
prices and classifications not of general applicability for Inbound Air
Parcel Post at UPU Rates on November 16, 2009. Id. at 1. The rates
authorized by Governors' Decision No. 09-15 when there is no
contractual relationship with the tendering postal operator are the
highest possible inward land rates that the United States is eligible
for under the parcel post regulations. Id. at 2. Air parcels comprise
inbound parcels eligible to receive transportation by air rather than
surface. Id., Attachment 2, at 1.
In the Postal Service's Request in Docket Nos. MC2010-11 and
CP2010-11, it explains the process for determining Inbound Air Parcel
Post at UPU Rates. In its Request, the Postal Service indicates that
the United States receives both air and surface parcels from foreign
postal administrations which compensate the Postal Service for delivery
of these parcels in the United States. Request at 2. It maintains that
it has negotiated separate agreements for parcel rates with certain
foreign posts, but most compensate it at the United States default
rates for inbound parcel delivery. Id. Payments between postal
administrations for handling and delivering parcel post are referred to
as inward land rates. The Postal Service notes that inward land rates
are set according to formulas in the UPU Parcel Post Regulations which
constitute international law. Id. More specifically, the UPU Postal
Operations Council establishes inward land rates.\3\ Such rates are
based on a percentage of each member's inward land rate in 2004. Id. at
3. UPU members may qualify for percentage ``bonuses'' to their base
rate based upon their provision of certain value-added services.\4\ Id.
The Postal Service states it is responsible for gathering information
that the UPU Postal Operations Council uses to calculate the rates,
including completion of a questionnaire on service bonus eligibility
and submission of annual inflation information from the Consumer Price
Index for All Urban Consumers. Id. Based on this and similar
information from the member posts, the UPU International Bureau
publishes an annual notice establishing the postal administration's
parcel rates for the following year. Id.
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\3\ The UPU Postal Operations Council is a designated body of
the UPU which is responsible for rate setting.
\4\ The Postal Service states that services such as ``track and
trace, home delivery, published delivery standards, and use of a
common inquiry system'' qualify UPU members for bonuses. Id. Members
may also seek an inflation-related adjustment to the base rate which
is capped at 5 percent per year.
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The Postal Service states that because of the unique mechanism for
setting inward land rates, it chose to establish rates for inbound air
parcels by reference to the Universal Postal Convention. Id.
In Order No. 362, the Commission approved the addition of Inbound
Air Parcel Post at UPU Rates to the competitive product list.\5\
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\5\ Docket Nos. MC2010-11 and CP2010-11, Order Adding Inbound
Air Parcel Post at UPU Rates to Competitive Product List, December
15, 2009 (Order No. 362).
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The Postal Service states in its Notice that the rates in its
filing comport with the Governors' Decision are ``the highest possible
inward land rates for which the Postal Service was eligible based on
inflation increases and other factors.'' Notice at 2-3.
The Postal Service asserts that its filing demonstrates compliance
with 39 U.S.C. 3633. Id. at 3.
III. Notice of Filing
The Commission establishes Docket No. CP2011-27 for consideration
of matters related to the issues identified in the Postal Service's
Notice.
Interested persons may submit comments on whether the Postal
Service's filing is consistent with the policies of 39 U.S.C. 3632 or
3633, and 39 CFR part 3015. Comments are due no later than November 18,
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 as Public Representative
in this proceeding.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. CP2011-27 for
consideration of the issues raised in this docket.
2. Comments by interested persons in this proceeding are due no
later than November 18, 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 this proceeding.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-28371 Filed 11-9-10; 8:45 am]
BILLING CODE 7710-FW-P