Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Proposed Rules 31713 

1Petition 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. 

absorbent cushioning materials, sealed 

secondary packaging, and a strong outer 

mailing container. The Postal Service is 

also adding language to encourage the 

use of locking rings when mailing metal 

containers with friction-top closures 

(push-down tops). 

The Postal Service believes these new 

mailing standards will prevent spills in 

general and reduce the frequency of 

incidents in which ruptured containers 

of liquid cause significant damage to 

surrounding mailpieces. The Postal 

Service anticipates that this proposed 

revision will result in decreased cost 

and time related to spill response, mail 

decontamination, site cleanup, and 

provide for an improved customer 

experience. 

If this proposed rule is adopted, the 

Postal Service will revise and align the 

language referencing the packaging of 

nonhazardous liquids located in DMM 

601.3.4 and add clarifying language 

regarding the use of orientation arrows. 

The Postal Service will also publish an 

appropriate amendment to 39 CFR part 

111 to reflect these changes. Finally, if 

the proposed rule is adopted, the Postal 

Service will also make corresponding 

revisions to Publication 52, Hazardous, 

Restricted, and Perishable Mail, section 

451 to align both publications with 

regard to the packaging of liquids in its 

networks. 

Although exempt from the notice and 

comment requirements of the 

Administrative Procedure Act (5 U.S.C. 

553(b), (c)) regarding proposed 

rulemaking by 39 U.S.C. 410(a), the 

Postal Service invites public comments 

on the following proposed revisions to 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM), incorporated by reference in the 

Code of Federal Regulations (see 39 CFR 

111.1). 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Incorporation by reference, 

Postal Service. 

Accordingly, for the reasons stated in 

the preamble, the Postal Service 

proposes that 39 CFR parts 111 and 113 

be amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– 

307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201– 

3219, 3403–3406, 3621, 3622, 3626, 3632, 

3633, and 5001. 

■ 2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM), as follows: 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) 

* * * * * 

600 Basic Standards for All Mailing 

Services 

601 Mailability 

* * * * * 

3.0 Packaging 

* * * * * 

3.4 Liquids 

[Revise the introductory paragraph of 

3.4 to read as follows:] 

Mailers must mark the outer container 

of a mailpiece containing liquid to 

indicate the nature of the contents, and 

include orientation arrows in 

accordance with Publication 52, section 

226. Mailers must package and mail 

liquids under the following conditions: 

[Revise 601.3.4a to read as follows:] 

a. Use screw-on caps with a minimum 

of one and one-half turns, soldering, 

clips, or similar means to close primary 

containers containing liquids. Do not 

use containers with friction-top closures 

(push-down tops) except as provided in 

3.4d. 

[Renumber the current 601.3.4b 

through 601.3.4d as the new 601.3.4c 

through 601.3.4e and add a new 

601.3.4b to read as follows:] 

b. The use of locking rings or similar 

devices is encouraged when mailing 

containers with friction-top closures 

(push-down tops). 

* * * * * 

[Revise renumbered 601.3.4d to read 

as follows:] 

d. All nonmetal containers of liquids, 

including plastic containers, and metal 

containers with friction top closures, 

without regard to volume, must be 

triple-packaged according to the 

following requirements: 

1. Cushion the primary container(s) 

with absorbent material capable of 

absorbing all of the liquid in the 

container(s) in case of breakage; 

2. Place the primary container inside 

another sealed, leakproof container 

(secondary container), such as a 

watertight can or plastic bag; and 

3. Use a strong and securely sealed 

outer mailing container durable enough 

to protect the contents and durable 

enough to withstand normal processing 

in Postal Service networks. 

* * * * * 

Ruth Stevenson, 

Attorney, Federal Compliance. 

[FR Doc. 2018–14382 Filed 7–6–18; 8:45 am] 

BILLING CODE 7710–12–P 

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. 

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 


sradovich on DSK3GMQ082PROD with PROPOSALS
31714 Federal Register / Vol. 83, No. 131 / Monday, July 9, 2018 / Proposed Rules 

2 Id. (citing Docket No. ACR2017, United States 

Postal Service Annual Compliance Report, 

December 29, 2017, at 71 (FY 2017 ACR)). 

3 Id.; see Annual Compliance Determination 

Report, Fiscal Year 2017, March 29, 2018, at 88 (FY 

2017 ACD). 

proposed analytical changes filed in this 

docket as Proposal Six. 

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

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

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 


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