> ORDER NO. 1400

UNITED STATES OF AMERICA

POSTAL RATE COMMISSION

WASHINGTON, DC 20268-0001

Before Commissioners: George A. Omas, Chairman;

> Tony Hammond, Vice Chairman;
>
> Dana B. Covington, Sr.; and

Ruth Y. Goldway

International Mail Report Docket No. IM2004-1

THIRD NOTICE OF INTERNATIONAL MAIL

DATA REQUIREMENTS FOR FY 2003

(Issued April 1, 2004)

In order to help the Commission prepare the report required by 39 U.S.C.
§ 3663, on the costs, volumes, and revenues of the Postal Service's
international mail services, the Service is requested to provide the
following information on or before April 15, 2004.

1.  In Summary Description and Documentation, Volume 1, Part 2, page 31,
    the Postal Service states that the SIRVO frame is stratified by
    destination country or country group, US origin exchange office
    (OEO) group, transportation mode, and MIDAS mail category. n the FY
    1998 version of this documentation (*See* Docket No. IM99-1,
    Workpaper 1B, p. 7-3), MIDAS container type was included as a one of
    the stratification factors in addition to those listed above. Please
    confirm that the current list of stratification factors is accurate.

2.  In Summary Description and Documentation, Volume 1, Part 2, page 41,
    the Postal Service states that the Permit system provides revenue
    and volume data for Global Direct inbound mail from Canada. It also
    states that the IAB provides RPW data on Global Direct inbound mail
    from four other locations. What is the source of the IAB data for
    those other locations (*e.g.,* manifests, mailing statements, or
    other documentation)?

3.  According to Summary Description and Documentation, Volume 1, Part
    2, page 41, the Postal Service calculates the attributable costs for
    Global Direct Inbound (GDI) mail using unit attributable costs for
    analogous domestic subclasses and the applicable volume of GDI.
    File: GDEIO3.xls, Sheet: GDEI-GFY, Cells H58 and H59 contain
    unsourced amounts for GDI attributable cost. Cell H58 contains a
    figure that equals the total attributable cost for GDI less cost
    segment 14. The figure in Cell H58 can be found in File: Repots.xls,
    Sheet: COSSEG, Cell AI 165. The figure in Cell H59 represents
    attributable cost segment 14 costs. Please provide a worksheet
    showing how this figure was calculated or, alternatively, identify
    its location in the electronic worksheets already filed.

4.  File: GXG2003, Sheet: RPW-GXG, Cell J13 contains a formula for
    calculating the unit attributable processing cost for Global Express
    Mail as a proxy for the corresponding cost for GXG processing unit
    cost. The formula in J13 contains a figure that is multiplied by
    1,000 and then divided by the piece volume for FY 2003 Global
    Express Mail. The figure operated on is not sourced. Please provide
    a worksheet showing how that figure was calculated or,
    alternatively, identify the location in the worksheets already
    filed. The same file and worksheet also contain FY 2003 amounts for
    Global Express Mail revenue, pieces, and weight that do not match
    the amounts shown in the FY 2003 ICRA report, pages A-1 and B-1.
    Please discuss the difference and whether a revision is necessary.
    Please provide any revisions deemed necessary.

5.  In Exhibit 7, mail processing costs listed as outputs to the CRA
    differ from those listed in the Cost Segment and Component Report
    (3.1). Please reconcile the difference between Exhibit 7 and the
    CRA's Cost Segment 3.1. If the difference is due to peak load
    adjustment, please provide the underlying computation.

6.  Please update CAT/FAT and Load Attributable factors in Exhibit 8
    with FY 2003 data.

7.  Please provide supporting spreadsheets for Rural Carriers in cost
    segment 10.

8.  Page B-1of the FY 2003 ICRA Report shows that each outbound mail
    category incurred some delivery cost with Economy Parcel Post, Air
    Parcel Post, and Global Express Mail exhibiting the largest
    per-piece unit delivery costs. Please explain why there are delivery
    costs for outbound mail.

> It is ordered:
>
> The Postal Service is directed to provide the items in the body of
> this order on or before April 15, 2004.
>
> By the Commission.
>
> (S E A L)
>
> Steven W. Williams
>
> Secretary