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###### Postal Regulatory Commission

          - [Docket No. CP2011-27; Order No. 578]

# AGENCY:

Postal Regulatory Commission.

# ACTION:

Notice.

# 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                         *stephen.sharfman@prc.gov.*

# 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.                

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.                          ( print 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.*

                    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] 

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.

# Footnotes

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).                    
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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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3.                             The UPU Postal Operations Council is a designated body of the UPU which is responsible for rate setting.                    
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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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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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[FR Doc. 2010-28371 Filed 11-9-10; 8:45 am]

BILLING CODE 7710-FW-P