ORDER NO. 1420 

UNITED STATES OF AMERICA 

POSTAL REGULATORY COMMISSION 

WASHINGTON, DC 20268-0001 

Before Commissioners: Ruth Y. Goldway, Chairman; 

Nanci E. Langley, Vice Chairman; 

Mark Acton; 

Tony Hammond; and 

Robert G. Taub 

Section 407 Inquiry Docket No. PI2012-1 

NOTICE PROVIDING OPPORTUNITY TO COMMENT 

ON DEVELOPMENT OF COMMISSION VIEWS 

PURSUANT TO 39 U.S.C. 407(c)(1) 

(Issued July 31, 2012) 

I. INTRODUCTION 

The Commission anticipates receiving a request from the Secretary of State, 

pursuant to 39 U.S.C. 407(c)(1), for its views on whether proposals affecting market 

dominant rates and classifications for international postal products and services 

exchanged among postal administrations, to be negotiated this fall at the 25th Congress 

of the Universal Postal Union (UPU), are consistent with the standards and criteria for 

modern rate regulation established by the Commission under 39 U.S.C. 3622. 

The Commission invites public comment on the principles that should guide the 

development of its views. 

Postal Regulatory Commission

Submitted 7/31/2012 3:42:53 PM

Filing ID: 84456

Accepted 7/31/2012
Docket No. PI2012-1 - 2 - 

II. BACKGROUND 

The role of the State Department. The U.S. Department of State is responsible 

for formulating, coordinating, and overseeing foreign policy related to international 

postal services and other international delivery services, and has the power to conclude 

postal treaties, conventions, and amendments, subject to a condition related to 

competitive products. 39 U.S.C. 407(b)(1). In carrying out these responsibilities, the 

Secretary of State exercises primary authority for the conduct of foreign policy with 

respect to international postal services and other international delivery services, 

including the determination of United States positions and the conduct of United States 

participation in negotiations with foreign governments and international bodies. Id. at 

407(b)(2). In exercising this authority, the Secretary of State is, among other things, to 

coordinate with other agencies as appropriate, and in particular, to give full 

consideration to the authority vested by law or Executive Order in certain Federal 

entities, including the Postal Regulatory Commission. Id. at 407(b)(2)(A). 

The role of the Commission. Before concluding any treaty, convention, or 

amendment that establishes a rate or classification for a product subject to subchapter I 

of chapter 36 [provisions relating to market dominant products], the Secretary of State is 

to request that the Commission submit its views on whether such rate or classification is 

consistent with the standards and criteria established by the Commission under section 

3622. Id. at 407(c)(1).1 The Secretary must then ensure that each treaty, convention, 

or amendment concluded under section 407(b) is consistent with the views submitted by 

the Commission except if, or to the extent the Secretary determines, in writing, that 

ensuring such consistency is not in the foreign policy or national security interest of the 

United States. Id. at 407(c)(2). 

 

1

 The Commission established a modern system of regulation in Order No. 43 (issued October 

29, 2007). 
Docket No. PI2012-1 - 3 - 

The role of the UPU. The UPU is a specialized agency of the United Nations. It 

is the primary forum for cooperation between governments, posts, regulators and other 

postal-sector stakeholders. UPU Biennial Report 2009–2010 at 2. In terms of UPU 

organization and terminology the United States is a member country, the Department of 

State is the ministry, the Commission is the regulator, and the Postal Service is the 

operator. 

Every four years, the UPU Congress meets “to define the future world postal 

strategy, the Union’s four-year roadmap, and lay down standards and regulations which 

facilitate and increase the security of international exchanges of mail and parcels, as 

well as the delivery of a broad range of secure and affordable electronic and financial 

services.”2 The UPU will hold its 25th Congress in Doha, Qatar this fall (from September 

24 to October 15, 2012). As matters that affect “postal treaties, conventions, and 

amendments” will be considered in Doha, section 407 requirements come into play. 

In anticipation of receipt of the Secretary of State’s request under section 

407(c)(1), the Commission invites public comment on the principles that should guide 

development of its views on the consistency of proposals for “rates and classification of 

products subject to subchapter I of chapter 36” with the standards and criteria of 

39 U.S.C. § 3622. 

Comments are to be submitted via the Commission’s Filing Online system at 

http://www.prc.gov unless a request for waiver is approved. For assistance with filing, 

contact Joyce Taylor at 202-789-6846 or dockets@prc.gov. 

Public Representative. Section 505 of title 39 requires the designation of an 

officer of the Commission (public representative) to represent the interests of the 

general public in all public proceedings. The Commission hereby designates Emmett 

Rand Costich as Public Representative in this proceeding.

 

2

http://www.upu.int/the-upu/congress/about-congress.html.
Docket No. PI2012-1 - 4 - 

III. ORDERING PARAGRAPHS 

It is ordered: 

1. The Commission establishes Docket No. PI2012-1 for the purpose of receiving 

comments on the principles that should guide the development of its section 407 

views on rate and classification proposals subject to subchapter I of chapter 36 of 

title 39 of the U.S. Code [provisions relating to market dominant products]. 

2. Comments are due by August 20, 2012. 

3. Emmett Rand Costich is designated as the Public Representative to represent 

the interests of the general public in this docket. 

4. The Secretary shall arrange for publication of this Notice in the Federal Register.

By the Commission. 

Shoshana M. Grove 

Secretary