Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 41051 

1Request of the United States Postal Service to 

Add Direct Entry Parcels Contracts, International 

Return Service, and Harmonization Service to the 

Competitive Products List, and Notice of Filing 

(Under Seal) of Contract and Enabling Governors’ 

Decision, June 11, 2009 (Request). 

2 Governors’ Decision No. 09–7, filed June 11, 

2009, establishes prices and classifications not of 

general applicability for Direct Entry Parcels 

Contracts, International Return Service, and 

Harmonization Service Offered with Customized 

Agreements. Id. at 1. 

3Attachment 1 to the Request. 

4Attachment 2 to the Request. 

5Attachment 2, Attachments A–1, A–2, and A–3 

to the Request. 

6Attachment 2, Attachments B–1, B–2, and B–3 

to the Request. 

7Attachment 2, Attachments C–1, C–2, and C–3 

to the Request. 

Priority Mail Contract 2 (MC2009–2 and 

CP2009–3) 

Priority Mail Contract 3 (MC2009–4 and 

CP2009–5) 

Priority Mail Contract 4 (MC2009–5 and 

CP2009–6) 

Priority Mail Contract 5 (MC2009–21 and 

CP2009–26) 

Priority Mail Contract 6 (MC2009–25 and 

CP2009–30) 

Priority Mail Contract 7 (MC2009–25 and 

CP2009–31) 

Priority Mail Contract 8 (MC2009–25 and 

CP2009–32) 

Priority Mail Contract 9 (MC2009–25 and 

CP2009–33) 

Priority Mail Contract 10 (MC2009–25 and 

CP2009–34) 

Priority Mail Contract 11 (MC2009–27 and 

CP2009–37) 

Priority Mail Contract 12 (MC2009–28 and 

CP2009–38) 

Priority Mail Contract 13 (MC2009–29 and 

CP2009–39) 

Priority Mail Contract 14 (MC2009–30 and 

CP2009–40) 

Outbound International 

Direct Entry Parcels Contracts 

Direct Entry Parcels 1 (MC2009–26 and 

CP2009–36) 

Global Direct Contracts (MC2009–9, 

CP2009–10, and CP2009–11) 

Global Expedited Package Services (GEPS) 

Contracts 

GEPS 1 (CP2008–5, CP2008–11, CP2008– 

12, and CP2008–13, CP2008–18, 

CP2008–19, CP2008–20, CP2008–21, 

CP2008–22, CP2008–23, and CP2008–24) 

Global Plus Contracts 

Global Plus 1 (CP2008–8, CP2008–46 and 

CP2009–47) 

Global Plus 2 (MC2008–7, CP2008–16 and 

CP2008–17) 

Inbound International 

Inbound Direct Entry Contracts with 

Foreign Postal Administrations 

(MC2008–6, CP2008–14 and CP2008–15) 

International Business Reply Service 

Competitive Contract 1 (MC2009–14 and 

CP2009–20) 

Competitive Product Descriptions 

Express Mail 

[Reserved for Group Description] 

Express Mail 

[Reserved for Product Description] 

Outbound International Expedited Services 

[Reserved for Product Description] 

Inbound International Expedited Services 

[Reserved for Product Description] 

Priority 

[Reserved for Product Description] 

Priority Mail 

[Reserved for Product Description] 

Outbound Priority Mail International 

[Reserved for Product Description] 

Inbound Air Parcel Post 

[Reserved for Product Description] 

Parcel Select 

[Reserved for Group Description] 

Parcel Return Service 

[Reserved for Group Description] 

International 

[Reserved for Group Description] 

International Priority Airlift (IPA) 

[Reserved for Product Description] 

International Surface Airlift (ISAL) 

[Reserved for Product Description] 

International Direct Sacks—M-Bags 

[Reserved for Product Description] 

Global Customized Shipping Services 

[Reserved for Product Description] 

International Money Transfer Service 

[Reserved for Product Description] 

Inbound Surface Parcel Post (at non-UPU 

rates) 

[Reserved for Product Description] 

International Ancillary Services 

[Reserved for Product Description] 

International Certificate of Mailing 

[Reserved for Product Description] 

International Registered Mail 

[Reserved for Product Description] 

International Return Receipt 

[Reserved for Product Description] 

International Restricted Delivery 

[Reserved for Product Description] 

International Insurance 

[Reserved for Product Description] 

Negotiated Service Agreements 

[Reserved for Group Description] 

Domestic 

[Reserved for Product Description] 

Outbound International 

[Reserved for Group Description] 

Part C—Glossary of Terms and Conditions 

[Reserved] 

Part D—Country Price Lists for International 

Mail [Reserved] 

[FR Doc. E9–19504 Filed 8–13–09; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

39 CFR Part 3020 

[Docket Nos. MC2009–26 and CP2009–36; 

Order No. 264] 

International Mail Products and Special 

Services 

AGENCY: Postal Regulatory Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adding 

Direct Entry Parcels Contracts and two 

related special services to the 

Competitive Product List. The two 

special services are categorized within 

International Ancillary Services. This 

action is consistent with changes in a 

recent law governing postal operations. 

Republication of the lists of market 

dominant and competitive products is 

also consistent with requirements in the 

new law. 

DATES: Effective August 14, 2009 and is 

applicable beginning July 31, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman at 202–789–6820 

or stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: Regulatory 

History, 74 FR 30646 (June 29, 2009). 

I. Introduction 

II. Background 

III. Comments 

IV. Commission Analysis 

V. Ordering Paragraphs 

I. Introduction 

The Postal Service seeks to add Direct 

Entry Parcels (DEP) Contracts, 

International Return Service, and 

Harmonization Service to the 

Competitive Product List. For the 

reasons discussed below, the 

Commission approves adding the 

specific DEP contract (DEP 1) as a new 

product, along with International Return 

Service and Harmonization Service as 

ancillary (or special) services. 

II. Background 

On June 11, 2009, the Postal Service 

filed a formal request pursuant to 39 

U.S.C. 3642 and 39 CFR 3020.30 et seq. 

to add Direct Entry Parcels Contracts, 

International Return Service, and 

Harmonization Service to the 

Competitive Products List.1 The Postal 

Service indicates that Governors’ 

Decision No. 09–7, dated June 10, 2009, 

establishes prices and classifications not 

of general applicability for DEP 

contracts and the ancillary services of 

International Return Service and 

Harmonization Service.2 The Request 

has been assigned Docket No. MC2009– 

26. 

The Postal Service 

contemporaneously filed a DEP contract 

pursuant to 39 U.S.C. 3632(b)(3) and 39 

CFR 3015.5. Request at 1. The contract 

has been assigned Docket No. CP2009– 

36. 

The Request incorporates (1) A 

Statement of Supporting Justification as 

required by 39 CFR 3020.32; 3

(2) Governors’ Decision No. 09–7 

authorizing the new product and 

services; 4 (3) proposed changes to the 

Mail Classification Schedule (MCS); 5

(4) the pricing formulas applicable to 

DEP contracts, International Return 

Service and Harmonization Service; 6

(5) an analysis of those pricing 

formulas; 7 (6) certification of 

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41052 Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 

8Attachment 2, Attachment D to the Request. 

9Attachment 3 to the Request. 

10Attachment 4 to the Request. 

11PRC Order No. 228, Notice and Order 

Concerning Direct Entry Parcels Contract, 

International Return Service and Harmonization 

Service Negotiated Service Agreements, June 22, 

2009 (Order No. 228). 

12Response of the United States Postal Service to 

Chairman’s Information Request No. 1, July 2, 2009. 

13Notice of the United States Postal Service 

Regarding the Filing of Library Reference USPS– 

CP2009–36NP3, July 15, 2009 and Notice of the 

United States Postal Service Regarding the Filing of 

Library Reference USPS–CP2009–36NP4. 

14 Id. at 1–2. See also id. at 5 (urging the 

Commission to add ‘‘this product [DEP Contracts] 

to the competitive products list * * *.’’); and at 6 

compliance with 39 U.S.C. 3633(a); 8 (7) 

a redacted version of the contract; 9 and 

(8) certification that the instant contract 

(DEP 1) complies with 39 U.S.C. 

3633(a).10 Substantively, the Request 

seeks to add the DEP contract, and the 

ancillary services of International 

Return Service, and Harmonization 

Service to the Competitive Products 

List. Request at 1–2. 

In the Statement of Supporting 

Justification, Frank Cebello, Executive 

Director, Global Business Management, 

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. Thus, Mr. Cebello 

contends there will be no issue of 

subsidization of competitive products 

by market dominant products as a result 

of this contract. Id. 

The Postal Service represents that the 

instant contract is consistent with 39 

U.S.C. 3633(a), 39 CFR 3015.5 and 39 

CFR 3015.7. See id., Attachment 2. DEP 

contracts include International Return 

Service and Harmonization Service as 

optional features which reflect the 

proposed MCS language in Attachments 

A–2 and A–3 of the Governors’ 

Decision, respectively. DEP contracts 

provide for mail acceptance within the 

United States, transportation to a 

receiving country of parcels bearing the 

appropriate foreign indicia, 

transportation to customs within the 

receiving country, and customs 

clearance and prepayment of customs 

duties and taxes to the receiving 

country. The Postal Service states that 

International Return Service provides 

for the return of refused or 

undeliverable items. It states that 

Harmonization Service offers review of 

outbound items by a licensed customs 

broker and the broker’s assignment of 

Harmonized Tariff Schedule codes to 

facilitate assessment of customs duties. 

Id. at 2–3. The Postal Service notes that 

the latter two services will only be 

available through customized 

agreements, in particular through DEP 

contracts similar to the instant contract. 

The contract becomes effective within 

30 days after the Postal Service notifies 

the customer that it has received all 

required reviews and the Commission 

has provided all necessary regulatory 

approvals. The term of the contract is 

one year from the effective date. 

The Postal Service filed much of the 

supporting materials, including 

Governors’ Decision 09–7, and related 

financial information, including 

analysis of the instant contract in 

redacted versions and under seal. In its 

Request, the Postal Service maintains 

that the contract and related financial 

information, including the customer’s 

name and the accompanying analyses 

that provide prices, terms, conditions, 

and financial projections, should remain 

under seal. Id. at 3–4. 

The Postal Service requests that the 

Commission list the instant DEP 

contract, as well as any subsequent 

functionally equivalent DEP contracts, 

as one product on the Competitive 

Product List. Id. at 1–2. The Request 

advances reasons why DEP contracts as 

described in the proposed MCS 

language are in conformity with the 

requirements of 39 U.S.C. 3642 as 

competitive products. Among other 

things, the Postal Service asserts that 

DEP contracts are intended for 

merchandise exempt from the Private 

Express Statutes; that the Postal 

Accountability and Enhancement Act 

(PAEA) classifies bulk international 

mail as competitive; and that classifying 

DEP contracts as competitive is 

consistent with Commission precedent. 

It contends that even though the senders 

of DEP items may mail individual 

pieces, the contract customer has 

committed to compensate the Postal 

Service for a bulk volume of DEP items. 

The Postal Service also notes that Direct 

Entry Parcels, Harmonization Service, 

and International Return Service are 

contractual services not available to 

individual retail customers. Id. at 4–5. 

In Order No. 228, the Commission 

gave notice of the two dockets, 

appointed a public representative, and 

provided the public with an opportunity 

to comment.11 On June 26, 2009, 

Chairman’s Information Request No. 1 

(CHIR No. 1) was issued. The Postal 

Service filed its response to CHIR No. 1 

on July 2, 2009.12 The Postal Service 

responses provided some of the 

information requested in CHIR No. 1 

and indicated that revised financial 

information in response to questions 2, 

5, 8 and 9 would be filed as soon as it 

could be completed. On July 15, 2009, 

the Postal Service filed the revised 

financial information as referenced in 

its July 2, 2009 response.13

III. Comments 

Comments were filed by the Public 

Representative on June 29, 2009 (Public 

Representative Comments). No filings 

were submitted by any other interested 

parties. 

The Public Representative states that 

the Governors’ Decision authorizes DEP 

contracts subject to price floor and price 

ceiling formulas. Public Representative 

Comments at 1. He contends the instant 

contract is specifically authorized by the 

Governors, but any additional DEP 

contracts would require a separate 

Governors’ Decision in order to comply 

with the law. Id. The Public 

Representative contends that the price 

formulas in Governors’ Decision No. 09– 

7 use ex ante values which will change 

over the life of the contract. He notes 

that the contract permits (but does not 

require) changing prices if some of the 

variables in the formula change. 

Therefore, he concludes there is some 

risk that a change in the variables under 

the contract could eliminate the 

contract’s profit. Id. at 2. The Public 

Representative also states it appears the 

volume under the instant contract is 

new to the Postal Service. Id. 

IV. Commission Analysis 

The Commission has reviewed the 

Request, the Agreement, the financial 

analysis filed under seal, supplemental 

information filed in response to CHIR 

No. 1, and the comments filed by the 

Public Representative. 

As a preliminary matter, it may be 

useful to outline the Request before the 

Commission. The Postal Service seeks to 

add DEP Contracts, International Return 

Service, and Harmonization Service to 

the Competitive Product List within the 

Mail Classification Schedule. Request at 

1. While the Request characterizes these 

as three products (id.), it appears that 

International Return Service and 

Harmonization Service are ancillary (or 

special) services available only in 

conjunction with DEP contracts or other 

customized agreements. Id. at 1, n.1 and 

3. More specifically, the Postal Service 

requests that the instant DEP contract, 

together with any subsequent 

functionally equivalent DEP contracts, 

be listed as one product on the 

Competitive Product List.14

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Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 41053 

(‘‘the Postal Service believes that this DEP Contract 

should be added to the competitive products list.’’) 

The Governors’ Decision establishes 

classifications and prices for DEP 

Contracts, a new product, and 

International Return Service and 

Harmonization Service, two special 

services. The proposed draft MCS 

language describes these classifications. 

The instant contract is the first DEP 

contract executed pursuant to the 

Governors’ Decision. The Commission’s 

consideration of the Request will thus 

focus on that contract and the ancillary 

(or special) services offered with it. As 

discussed below, DEP 1, International 

Return Service and Harmonization 

Service will be added to the 

Competitive Product List and the 

proposed classification language will be 

added to the MCS. It is premature, 

however, to consider the treatment of 

any future DEP contracts in this 

proceeding. Whether subsequent DEP 

contracts, if any, are functionally 

equivalent with DEP 1 can be addressed 

in the relevant subsequent 

proceeding(s). 

Statutory requirements. The 

Commission’s statutory responsibilities 

in this instance entail assigning DEP 1 

to either the Market Dominant Product 

List or to the Competitive Product List. 

39 U.S.C. 3642. As part of this 

responsibility, the Commission also 

reviews the proposal for compliance 

with PAEA requirements. This includes, 

for proposed competitive products, a 

review of the provisions applicable to 

rates for competitive products. 39 U.S.C. 

3633. 

Product list assignment. In 

determining whether to assign DEP 1 as 

a product to the Market Dominant 

Product List or the Competitive Product 

List, the Commission must consider 

whether ‘‘the Postal Service exercises 

sufficient market power that it can 

effectively set the price of such product 

substantially above costs, raise prices 

significantly, decrease quality, or 

decrease output, without risk of losing 

a significant level of business to other 

firms offering similar products.’’ 39 

U.S.C. 3642(b)(1). If so, the product will 

be categorized as market dominant. The 

competitive category of products shall 

consist of all other products. 

The Commission is further required to 

consider the availability and nature of 

enterprises in the private sector engaged 

in the delivery of the product, the views 

of those who use the product, and the 

likely impact on small business 

concerns. 39 U.S.C. 3642(b)(3). 

The Postal Service states that DEP 

contracts are for U.S. based entities that 

seek a channel to send merchandise or 

other articles to their overseas 

customers in packaging that has the 

‘‘‘look and feel’’’ of domestic items in 

the destination country. Request, 

Attachment 1, ¶ (d). It states that, 

generally, DEP contracts will include 

the use of a licensed customs broker to 

review items for proper Harmonized 

Tariff Schedule classification 

(Harmonization Service), and the Postal 

Service may arrange the return of 

undeliverable or refused items 

(International Return Service). The 

Postal Service indicates that because of 

the competitive nature of international 

shipping services, the market does not 

permit it to raise prices substantially 

above costs and the contract is premised 

on prices that provide sufficient 

incentive for customers to ship with the 

Postal Service rather than a competitor. 

Id. 

The Postal Service asserts that its 

bargaining position is constrained by 

the existence of other shippers who can 

provide similar services, thus 

precluding it from taking unilateral 

action to increase prices or decrease 

service without the risk of losing 

volume to private companies in the 

international shipping industry. The 

Postal Service also contends that it may 

not decrease quality or output without 

risking the loss of business to 

competitors that offer similar 

international parcel delivery services. 

Id. It further states that in the proposed 

MCS language established by the 

Governors, DEP contract items consist of 

Parcel Post items that are not subject to 

the Private Express Statutes and that 

any letters inserted in Direct Entry 

Parcels would also likely be within the 

letter monopoly exclusion of letters 

under the Private Express Statutes. Id., 

¶ (e). 

The Postal Service states that the 

market for international delivery 

services is highly competitive and the 

addition of DEP contracts should have 

minimal, if any, impact on small 

business concerns. It contends that large 

shipping companies, consolidators, and 

freight forwarders comprise the market 

represented by the customers for the 

instant contracts, and it is unaware of 

any small business that can offer 

comparable service for the customer’s 

volume. It notes that small businesses 

are gaining an additional option for 

shipping articles internationally, 

beyond the service offered by its 

competitors, resulting in a positive 

impact on small businesses. Therefore, 

the Postal Service concludes the net 

impact on small business should be 

positive. Id., ¶ (h). 

The Public Representative does not 

oppose the proposed classification of 

DEP contracts as competitive. 

Having considered the statutory 

requirements, the support offered by the 

Postal Service, and all comments, the 

Commission finds that DEP 1 is 

appropriately classified as a competitive 

product and should be added to the 

Competitive Product List. 

Cost considerations. The initial 

supporting documentation filed by the 

Postal Service on June 11, 2009 did not 

include source contracts with thirdparty providers to substantiate certain 

cost factors. In addition, the rates in the 

supporting documentation did not 

match the rates in the instant contract. 

The Commission had to request the 

source contracts and additional 

supporting documentation and seek 

clarification of discrepancies between 

rates in the instant contract and 

supporting documentation in order to 

complete its analysis. 

In its response to CHIR No. 1 on July 

15, 2009, the Postal Service filed 

supporting documentation which 

included two sets of rates. However, 

only one set of rates was included in the 

instant DEP contract. The Commission 

understands that the second set of rates 

is only based on projected cost increases 

as allowed for in the instant contract 

and explained below under ‘‘Pricing 

provisions.’’ 

In future filings, the Postal Service 

should provide all supporting source 

documentation, including relevant 

contracts with third-party providers, 

and ensure consistency between rates in 

filed contracts and supporting 

documentation. Postal Service requests 

that contain inconsistent or missing 

information hinder the Commissioner’s 

ability to review filings promptly and 

may delay final disposition, such as in 

this instance. 

Based on the data submitted, the 

Commission finds that revenue from 

DEP 1 should cover its attributable costs 

(39 U.S.C. 3633(a)(2)), should not lead 

to the subsidization of competitive 

products by market dominant products 

(39 U.S.C. 3633(a)(1)), and should have 

a positive effect on competitive 

products’ contribution to institutional 

costs (39 U.S.C. 3633(a)(3)). Thus, an 

initial review of the instant DEP 

contract indicates that it comports with 

the provisions applicable to rates for 

competitive products. 

Pricing provisions. The instant 

contract includes provisions that would 

permit price changes during the 1-year 

term of the contract. The Public 

Representative notes that these 

provisions may affect results under the 

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41054 Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 

contract. Public Representative 

Comments at 2. 

Article 9.2 provides that the prices 

under the DEP contract are based on 

prices established by Canada Post 

Corporation for Xpresspost, and that if 

the latter change, the Postal Service 

reserves the right to adjust prices 

accordingly. The second provision, 

Article 9.1, is somewhat more 

problematic as it is not based on the 

destination country’s post, but rather on 

cost increases incurred by the Postal 

Service over a specified threshold. 

The provisions, agreed to by the 

parties, mitigate risks associated with 

the contract. Should either of these 

provisions be invoked during the 

contract year, the Postal Service shall 

file a notice of the price changes with 

the Commission. The notice, in lieu of 

a filing under 39 CFR 3015, shall 

include the new prices as well prior to 

their effective date. 

Scope of the Governors’ Decision. The 

Public Representative states that the 

instant DEP contract is authorized by 

Governors’ Decision No. 09–7, but that 

any future DEP contracts must be based 

on a separate Governors’ Decision. 

Otherwise, 39 U.S.C. 402 would be 

violated. Public Representative 

Comments at 1. 

The Public Representative apparently 

views Governors’ Decision No. 09–7 as 

having ‘‘effectively delegated’’ the 

Governors’ authority to Postal Service 

management. He argues that the PAEA 

does not provide for delegation by the 

Governors, as distinct from the Board of 

Governors. The Public Representative 

concludes that the instant contract has 

been explicitly authorized by the 

Governors, but that Governors’ Decision 

No. 09–7 could not be used to support 

any further DEP contracts. The 

Commission does not read the 

Governors’ Decision so narrowly. That 

Governors’ Decision authorizes 

contracts that fall within the terms of 

the MCS language and price formulas 

attached to the Governors’ Decision. The 

Public Representative does not explain 

and it is not clear to the Commission 

why the Governors’ Decision should be 

read to authorize only the instant 

contract, but no other. While his 

conclusion may be predicated on his 

theory of delegation, the Commission 

finds that it is unnecessary to address 

those claims for purposes of this 

proceeding. 

Other considerations. The Postal 

Service shall promptly notify the 

Commission of the effective date and 

termination date of the contract. If the 

contract terminates earlier than 

anticipated, the Postal Service shall 

inform the Commission prior to the new 

termination date. The Commission will 

then remove the product from the MCS 

at the earliest possible opportunity. 

In conclusion, the Commission 

approves Direct Entry Parcels 1 as a new 

product, and International Return 

Service and Harmonization Service as 

competitive special services. The 

revision to the Competitive Product List 

is shown below the signature of this 

Order and is effective upon issuance of 

this order. 

V. Ordering Paragraphs 

It is ordered: 

1. Direct Entry Parcels 1 (MC2009–26 

and CP2009–36) is added to the 

Competitive Product List as a new 

product. 

2. International Return Service and 

Harmonization Service are added as 

components of the International 

Ancillary Services product. 

3. The Postal Service shall notify the 

Commission of the scheduled effective 

date and termination date and update 

the Commission if the contract 

terminates at an earlier date, as 

discussed in this order. 

4. As discussed in this order, price 

changes pursuant to Direct Entry Parcels 

1 shall be filed with the Commission. 

5. The Secretary shall arrange for the 

publication of this Order in the Federal 

Register. 

List of Subjects in 39 CFR Part 3020 

Admininistrative practice and 

procedure, Postal Service. 

Issued: July 31, 2009. 

By the Commission. 

Judith M. Grady, 

Acting Secretary. 

■ For the reasons stated in the preamble, 

under the authority at 39 U.S.C. 503, the 

Postal Regulatory Commission amends 

39 CFR part 3020 as follows: 

PART 3020—PRODUCT LISTS 

■ 1. The authority citation for part 3020 

continues to read as follows: 

Authority: 39 U.S.C. 503; 3622; 3631; 3642; 

3682. 

■ 2. Revise Appendix A to Subpart A of 

Part 3020—Mail Classification Schedule 

to read as follows: 

Appendix A to Subpart A of Part 

3020—Mail Classification Schedule 

Part A—Market Dominant Products 

1000 Market Dominant Product List 

First-Class Mail 

Single-Piece Letters/Postcards 

Bulk Letters/Postcards 

Flats 

Parcels 

Outbound Single-Piece First-Class Mail 

International 

Inbound Single-Piece First-Class Mail 

International 

Standard Mail (Regular and Nonprofit) 

High Density and Saturation Letters 

High Density and Saturation Flats/Parcels 

Carrier Route 

Letters 

Flats 

Not Flat-Machinables (NFMs)/Parcels 

Periodicals 

Within County Periodicals 

Outside County Periodicals 

Package Services 

Single-Piece Parcel Post 

Inbound Surface Parcel Post (at UPU rates) 

Bound Printed Matter Flats 

Bound Printed Matter Parcels 

Media Mail/Library Mail 

Special Services 

Ancillary Services 

International Ancillary Services 

Address List Services 

Caller Service 

Change-of-Address Credit Card 

Authentication 

Confirm 

International Reply Coupon Service 

International Business Reply Mail Service 

Money Orders 

Post Office Box Service 

Negotiated Service Agreements 

HSBC North America Holdings Inc. 

Negotiated Service Agreement 

Bookspan Negotiated Service Agreement 

Bank of America Corporation Negotiated 

Service Agreement 

The Bradford Group Negotiated Service 

Agreement 

Inbound International 

Canada Post—United States Postal Service 

Contractual Bilateral 

Agreement for Inbound Market Dominant 

Services 

Market Dominant Product Descriptions 

First-Class Mail 

[Reserved for Class Description] 

Single-Piece Letters/Postcards 

[Reserved for Product Description] 

Bulk Letters/Postcards 

[Reserved for Product Description] 

Flats 

[Reserved for Product Description] 

Parcels 

[Reserved for Product Description] 

Outbound Single-Piece First-Class Mail 

International 

[Reserved for Product Description] 

Inbound Single-Piece First-Class Mail 

International 

[Reserved for Product Description] 

Standard Mail (Regular and Nonprofit) 

[Reserved for Class Description] 

High Density and Saturation Letters 

[Reserved for Product Description] 

High Density and Saturation Flats/Parcels 

[Reserved for Product Description] 

Carrier Route 

[Reserved for Product Description] 

Letters 

[Reserved for Product Description] 

Flats 

[Reserved for Product Description] 

Not Flat-Machinables (NFMs)/Parcels 

[Reserved for Product Description] 

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Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 41055 

Periodicals 

[Reserved for Class Description] 

Within County Periodicals 

[Reserved for Product Description] 

Outside County Periodicals 

[Reserved for Product Description] 

Package Services 

[Reserved for Class Description] 

Single-Piece Parcel Post 

[Reserved for Product Description] 

Inbound Surface Parcel Post (at UPU rates) 

[Reserved for Product Description] 

Bound Printed Matter Flats 

[Reserved for Product Description] 

Bound Printed Matter Parcels 

[Reserved for Product Description] 

Media Mail/Library Mail 

[Reserved for Product Description] 

Special Services 

[Reserved for Class Description] 

Ancillary Services 

[Reserved for Product Description] 

Address Correction Service 

[Reserved for Product Description] 

Applications and Mailing Permits 

[Reserved for Product Description] 

Business Reply Mail 

[Reserved for Product Description] 

Bulk Parcel Return Service 

[Reserved for Product Description] 

Certified Mail 

[Reserved for Product Description] 

Certificate of Mailing 

[Reserved for Product Description] 

Collect on Delivery 

[Reserved for Product Description] 

Delivery Confirmation 

[Reserved for Product Description] 

Insurance 

[Reserved for Product Description] 

Merchandise Return Service 

[Reserved for Product Description] 

Parcel Airlift (PAL) 

[Reserved for Product Description] 

Registered Mail 

[Reserved for Product Description] 

Return Receipt 

[Reserved for Product Description] 

Return Receipt for Merchandise 

[Reserved for Product Description] 

Restricted Delivery 

[Reserved for Product Description] 

Shipper-Paid Forwarding 

[Reserved for Product Description] 

Signature Confirmation 

[Reserved for Product Description] 

Special Handling 

[Reserved for Product Description] 

Stamped Envelopes 

[Reserved for Product Description] 

Stamped Cards 

[Reserved for Product Description] 

Premium Stamped Stationery 

[Reserved for Product Description] 

Premium Stamped Cards 

[Reserved for Product Description] 

International Ancillary Services 

[Reserved for Product Description] 

International Certificate of Mailing 

[Reserved for Product Description] 

International Registered Mail 

[Reserved for Product Description] 

International Return Receipt 

[Reserved for Product Description] 

International Restricted Delivery 

[Reserved for Product Description] 

Address List Services 

[Reserved for Product Description] 

Caller Service 

[Reserved for Product Description] 

Change-of-Address Credit Card 

Authentication 

[Reserved for Product Description] 

Confirm 

[Reserved for Product Description] 

International Reply Coupon Service 

[Reserved for Product Description] 

International Business Reply Mail Service 

[Reserved for Product Description] 

Money Orders 

[Reserved for Product Description] 

Post Office Box Service 

[Reserved for Product Description] 

Negotiated Service Agreements 

[Reserved for Class Description] 

HSBC North America Holdings Inc. 

Negotiated Service Agreement 

[Reserved for Product Description] 

Bookspan Negotiated Service Agreement 

[Reserved for Product Description] 

Bank of America Corporation Negotiated 

Service Agreement 

The Bradford Group Negotiated Service 

Agreement 

Part B—Competitive Products 

2000 Competitive Product List 

Express Mail 

Express Mail 

Outbound International Expedited Services 

Inbound International Expedited Services 

Inbound International Expedited Services 1 

(CP2008–7) 

Inbound International Expedited Services 2 

(MC2009–10 and CP2009–12) 

Priority Mail 

Priority Mail 

Outbound Priority Mail International 

Inbound Air Parcel Post 

Royal Mail Group Inbound Air Parcel Post 

Agreement 

Parcel Select 

Parcel Return Service 

International 

International Priority Airlift (IPA) 

International Surface Airlift (ISAL) 

International Direct Sacks—M–Bags 

Global Customized Shipping Services 

Inbound Surface Parcel Post (at non-UPU 

rates) 

Canada Post—United States Postal service 

Contractual Bilateral Agreement for 

Inbound Competitive Services (MC2009– 

8 and CP2009–9) 

International Money Transfer Service 

International Ancillary Services 

Special Services 

Premium Forwarding Service 

Negotiated Service Agreements 

Domestic 

Express Mail Contract 1 (MC2008–5) 

Express Mail Contract 2 (MC2009–3 and 

CP2009–4) 

Express Mail Contract 3 (MC2009–15 and 

CP2009–21) 

Express Mail Contract 4 (MC2009–34 and 

CP2009–45) 

Express Mail & Priority Mail Contract 1 

(MC2009–6 and CP2009–7) 

Express Mail & Priority Mail Contract 2 

(MC2009–12 and CP2009–14) 

Express Mail & Priority Mail Contract 3 

(MC2009–13 and CP2009–17) 

Express Mail & Priority Mail Contract 4 

(MC2009–17 and CP2009–24) 

Express Mail & Priority Mail Contract 5 

(MC2009–18 and CP2009–25) 

Express Mail & Priority Mail Contract 6 

(MC2009–31 and CP2009–42) 

Express Mail & Priority Mail Contract 7 

(MC2009–32 and CP2009–43) 

Express Mail & Priority Mail Contract 8 

(MC2009–33 and CP2009–44) 

Parcel Return Service Contract 1 (MC2009– 

1 and CP2009–2) 

Priority Mail Contract 1 (MC2008–8 and 

CP2008–26) 

Priority Mail Contract 2 (MC2009–2 and 

CP2009–3) 

Priority Mail Contract 3 (MC2009–4 and 

CP2009–5) 

Priority Mail Contract 4 (MC2009–5 and 

CP2009–6) 

Priority Mail Contract 5 (MC2009–21 and 

CP2009–26) 

Priority Mail Contract 6 (MC2009–25 and 

CP2009–30) 

Priority Mail Contract 7 (MC2009–25 and 

CP2009–31) 

Priority Mail Contract 8 (MC2009–25 and 

CP2009–32) 

Priority Mail Contract 9 (MC2009–25 and 

CP2009–33) 

Priority Mail Contract 10 (MC2009–25 and 

CP2009–34) 

Priority Mail Contract 11 (MC2009–27 and 

CP2009–37) 

Priority Mail Contract 12 (MC2009–28 and 

CP2009–38) 

Priority Mail Contract 13 (MC2009–29 and 

CP2009–39) 

Priority Mail Contract 14 (MC2009–30 and 

CP2009–40) 

Outbound International 

Direct Entry Parcels Contracts 

Direct Entry Parcels 1 (MC2009–26 and 

CP2009–36) 

Global Direct Contracts (MC2009–9, 

CP2009–10, and CP2009–11) 

Global Expedited Package Services (GEPS) 

Contracts 

GEPS 1 (CP2008–5, CP2008–11, CP2008– 

12, and CP2008–13, CP2008–18, 

CP2008–19, CP2008–20, CP2008–21, 

CP2008–22, CP2008–23, and CP2008–24) 

Global Plus Contracts 

Global Plus 1 (CP2008–9 and CP2008–10) 

Global Plus 2 (MC2008–7, CP2008–16 and 

CP2008–17) 

Inbound International 

Inbound Direct Entry Contracts with 

Foreign Postal Administrations 

(MC2008–6, CP2008–14 and CP2008–15) 

International Business Reply Service 

Competitive Contract 1 (MC2009–14 and 

CP2009–20) 

Competitive Product Descriptions 

Express Mail 

[Reserved for Group Description] 

Express Mail 

[Reserved for Product Description] 

Outbound International Expedited Services 

[Reserved for Product Description] 

Inbound International Expedited Services 

[Reserved for Product Description] 

Priority 

[Reserved for Product Description] 

Priority Mail 

[Reserved for Product Description] 

mstockstill on DSKH9S0YB1PROD with RULES

41056 Federal Register / Vol. 74, No. 156 / Friday, August 14, 2009 / Rules and Regulations 

Outbound Priority Mail International 

[Reserved for Product Description] 

Inbound Air Parcel Post 

[Reserved for Product Description] 

Parcel Select 

[Reserved for Group Description] 

Parcel Return Service 

[Reserved for Group Description] 

International 

[Reserved for Group Description] 

International Priority Airlift (IPA) 

[Reserved for Product Description] 

International Surface Airlift (ISAL) 

[Reserved for Product Description] 

International Direct Sacks—M–Bags 

[Reserved for Product Description] 

Global Customized Shipping Services 

[Reserved for Product Description] 

International Money Transfer Service 

[Reserved for Product Description] 

Inbound Surface Parcel Post (at non-UPU 

rates) 

[Reserved for Product Description] 

International Ancillary Services 

[Reserved for Product Description] 

International Certificate of Mailing 

[Reserved for Product Description] 

International Registered Mail 

[Reserved for Product Description] 

International Return Receipt 

[Reserved for Product Description] 

International Restricted Delivery 

[Reserved for Product Description] 

International Insurance 

[Reserved for Product Description] 

Negotiated Service Agreements 

[Reserved for Group Description] 

Domestic 

[Reserved for Product Description] 

Outbound International 

[Reserved for Group Description] 

Part C—Glossary of Terms and Conditions 

[Reserved] 

Part D—Country Price Lists for International 

Mail [Reserved] 

[FR Doc. E9–19366 Filed 8–13–09; 8:45 am] 

BILLING CODE 7710–FW–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Federal Emergency Management 

Agency 

44 CFR Part 64 

[Docket ID FEMA–2008–0020; Internal 

Agency Docket No. FEMA–8087] 

Suspension of Community Eligibility 

AGENCY: Federal Emergency 

Management Agency, DHS. 

ACTION: Final rule. 

SUMMARY: This rule identifies 

communities, where the sale of flood 

insurance has been authorized under 

the National Flood Insurance Program 

(NFIP), that are scheduled for 

suspension on the effective dates listed 

within this rule because of 

noncompliance with the floodplain 

management requirements of the 

program. If the Federal Emergency 

Management Agency (FEMA) receives 

documentation that the community has 

adopted the required floodplain 

management measures prior to the 

effective suspension date given in this 

rule, the suspension will not occur and 

a notice of this will be provided by 

publication in the Federal Register on a 

subsequent date. 

DATES: Effective Dates: The effective 

date of each community’s scheduled 

suspension is the third date (‘‘Susp.’’) 

listed in the third column of the 

following tables. 

FOR FURTHER INFORMATION CONTACT: If 

you want to determine whether a 

particular community was suspended 

on the suspension date or for further 

information, contact David Stearrett, 

Mitigation Directorate, Federal 

Emergency Management Agency, 500 C 

Street, SW., Washington, DC 20472, 

(202) 646–2953. 

SUPPLEMENTARY INFORMATION: The NFIP 

enables property owners to purchase 

flood insurance which is generally not 

otherwise available. In return, 

communities agree to adopt and 

administer local floodplain management 

aimed at protecting lives and new 

construction from future flooding. 

Section 1315 of the National Flood 

Insurance Act of 1968, as amended, 42 

U.S.C. 4022, prohibits flood insurance 

coverage as authorized under the NFIP, 

42 U.S.C. 4001 et seq.; unless an 

appropriate public body adopts 

adequate floodplain management 

measures with effective enforcement 

measures. The communities listed in 

this document no longer meet that 

statutory requirement for compliance 

with program regulations, 44 CFR part 

59. Accordingly, the communities will 

be suspended on the effective date in 

the third column. As of that date, flood 

insurance will no longer be available in 

the community. However, some of these 

communities may adopt and submit the 

required documentation of legally 

enforceable floodplain management 

measures after this rule is published but 

prior to the actual suspension date. 

These communities will not be 

suspended and will continue their 

eligibility for the sale of insurance. A 

notice withdrawing the suspension of 

the communities will be published in 

the Federal Register. 

In addition, FEMA has identified the 

Special Flood Hazard Areas (SFHAs) in 

these communities by publishing a 

Flood Insurance Rate Map (FIRM). The 

date of the FIRM, if one has been 

published, is indicated in the fourth 

column of the table. No direct Federal 

financial assistance (except assistance 

pursuant to the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act not in connection with a 

flood) may legally be provided for 

construction or acquisition of buildings 

in identified SFHAs for communities 

not participating in the NFIP and 

identified for more than a year, on 

FEMA’s initial flood insurance map of 

the community as having flood-prone 

areas (section 202(a) of the Flood 

Disaster Protection Act of 1973, 42 

U.S.C. 4106(a), as amended). This 

prohibition against certain types of 

Federal assistance becomes effective for 

the communities listed on the date 

shown in the last column. The 

Administrator finds that notice and 

public comment under 5 U.S.C. 553(b) 

are impracticable and unnecessary 

because communities listed in this final 

rule have been adequately notified. 

Each community receives 6-month, 

90-day, and 30-day notification letters 

addressed to the Chief Executive Officer 

stating that the community will be 

suspended unless the required 

floodplain management measures are 

met prior to the effective suspension 

date. Since these notifications were 

made, this final rule may take effect 

within less than 30 days. 

National Environmental Policy Act. 

This rule is categorically excluded from 

the requirements of 44 CFR part 10, 

Environmental Considerations. No 

environmental impact assessment has 

been prepared. 

Regulatory Flexibility Act. The 

Administrator has determined that this 

rule is exempt from the requirements of 

the Regulatory Flexibility Act because 

the National Flood Insurance Act of 

1968, as amended, 42 U.S.C. 4022, 

prohibits flood insurance coverage 

unless an appropriate public body 

adopts adequate floodplain management 

measures with effective enforcement 

measures. The communities listed no 

longer comply with the statutory 

requirements, and after the effective 

date, flood insurance will no longer be 

available in the communities unless 

remedial action takes place. 

Regulatory Classification. This final 

rule is not a significant regulatory action 

under the criteria of section 3(f) of 

Executive Order 12866 of September 30, 

1993, Regulatory Planning and Review, 

58 FR 51735. 

Executive Order 13132, Federalism. 

This rule involves no policies that have 

federalism implications under Executive 

Order 13132. 

Executive Order 12988, Civil Justice 

Reform. This rule meets the applicable 

standards of Executive Order 12988. 

mstockstill on DSKH9S0YB1PROD with RULES