[Federal Register Volume 83, Number 131 (Monday, July 9, 2018)]
[Proposed Rules]
[Pages 31713-31714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14621]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2018-9; Order No. 4692]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate an informal rulemaking proceeding to consider 
changes to an analytical method for use in periodic reporting (Proposal 
Six). This document informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: Comments are due: August 15, 2018.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Proposal Six
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On June 26, 2018, the Postal Service filed a petition pursuant to 
39 CFR 3050.11, requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports.\1\ The Petition identifies the

[[Page 31714]]

proposed analytical changes filed in this docket as Proposal Six.
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    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Six), June 26, 2018 (Petition). The 
Postal Service filed a non-public library reference with Proposal 
Six. Library Reference USPS-RM2018-9/NP1, Nonpublic Material 
Relating to Proposal Six, June 26, 2018; Notice of Filing of USPS-
RM2018-9/NP1 and Application for Nonpublic Treatment, June 26, 2018.
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II. Proposal Six

    Background. The Postal Service indicates that Proposal Six 
addresses two issues regarding the treatment of international indemnity 
payments. Petition, Proposal Six at 1. First, the Postal Service states 
this proposal ``addresses the issue of assigning claims for Priority 
Mail International (PMI) service to Outbound International Insurance, 
rather than to the PMI product.'' \2\
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    \2\ Id. (citing Docket No. ACR2017, United States Postal Service 
Annual Compliance Report, December 29, 2017, at 71 (FY 2017 ACR)).
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    Second, the Postal Service states that Proposal Six responds to a 
directive in the FY 2017 Annual Compliance Determination report (ACD). 
Id. In the FY 2017 ACD, the Commission directed the Postal Service to 
file a report on its ``evaluation of Outbound International Insurance 
cost reporting'' within 90 days of the FY 2017 ACD, including a 
determination of ``whether a change in analytical principles is 
warranted.'' \3\
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    \3\ Id.; see Annual Compliance Determination Report, Fiscal Year 
2017, March 29, 2018, at 88 (FY 2017 ACD).
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    Proposal. The Postal Service states that Proposal Six will ``expand 
the distribution of the attributable costs for International Indemnity 
payments to include International Inbound Indemnity payments.'' 
Petition, Proposal Six at 2. The proposal separates Outbound 
International Insurance indemnities from Inbound International 
Insurance indemnities, and ``develop[s] separate decision rules for 
treating the costs relating to Outbound International indemnities and 
Inbound International indemnities.'' Id. Specifically, the Postal 
Service proposes for Outbound International Insurance indemnities ``1) 
when additional insurance is not purchased, the indemnity cost will be 
assigned to the base parent product, and 2) when additional insurance 
is purchased, the indemnity cost will be assigned to the Outbound 
International Insurance product.'' Id. at 4. For Inbound International 
Insurance, the Postal Service proposes to split these indemnities from 
Outbound International indemnities and distribute the costs to their 
respective inbound products. Id. at 5-6.
    Rationale and impact. The Postal Service states that the current 
cost reporting requires ``refinements'' which ``may not rise to the 
level of a change in analytical principles.'' Id. at 2. It explains 
that the proposed methodology will correct the prior method of 
distributing international indemnity payments. Id. The Postal Service 
identifies the likely effects of Proposal Six on the development of the 
International Cost and Revenue Analysis (ICRA) report in non-public 
Library Reference USPS-RM2018-9/NP1. Id. at 2-3. The Petition indicates 
the proposal shifts costs from Outbound International Insurance to 
Inbound International Insurance, resulting in an improvement in 
contribution for Outbound products and a decline in contribution for 
Inbound products, and provides cell-by-cell differences between the 
proposed methodology and the data provided in the ICRA as part of the 
Postal Service's annual compliance report for FY 2017. Id. at 2-6. The 
Postal Service anticipates the overall net impact would not result in a 
negative contribution by any product that previously had a positive 
contribution, but also would not result in a positive contribution by 
any product that currently has a negative contribution. Id. at 3.

III. Notice and Comment

    The Commission establishes Docket No. RM2018-9 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal Six no later 
than August 15, 2018. Pursuant to 39 U.S.C. 505, Kenneth R. Moeller is 
designated as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2018-9 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Six), filed June 26, 2018.
    2. Comments by interested persons in this proceeding are due no 
later than August 15, 2018.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth R. 
Moeller to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2018-14621 Filed 7-6-18; 8:45 am]
 BILLING CODE 7710-FW-P