[Federal Register Volume 77, Number 66 (Thursday, April 5, 2012)]
[Notices]
[Pages 20656-20657]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-8161]


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POSTAL REGULATORY COMMISSION

[Docket No. R2012-7; Order No. 1302]


Postal Service Classification and Price Adjustments

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-filed Postal Service 
notice announcing its intent to implement Picture Permit Imprint 
Indicia as priced categories for First-Class Mail and Standard Mail 
letters and cards. This notice addresses procedural steps associated 
with this filing.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section as the source for case-related information for advice 
on alternatives to electronic filing.

DATES: Comments are due: April 17, 2012.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (case-related information) or <a href="/cdn-cgi/l/email-protection#682c070b030d1c290c0501061b28181a0b460f071e"><span class="__cf_email__" data-cfemail="0d49626e6668794c696064637e4d7d7f6e236a627b">[email protected]</span></a> 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Postal Service Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On March 28, 2012, the Postal Service filed a notice with the 
Commission announcing its intent to implement Picture Permit Imprint 
Indicia as price categories for First-Class Mail and Standard Mail 
letters and cards pursuant to 39 U.S.C. 3622 and 39 CFR 3010.\1\ The 
classification and price adjustment will permit certain images, such as 
corporate or product logos, to be placed in the permit indicia area of 
First-Class and Standard Mail letters and cards (Adjustment). Id. at 2. 
The adjustment is proposed to take effect at 12:01 a.m. on June 24, 
2012. Id. at 1.
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    \1\ United States Postal Service Notice of Market Dominant 
Classification and Price Changes for Picture Permit Imprint Indicia, 
March 28, 2012 (Notice).
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II. Postal Service Filing

    Picture Permit Imprint Indicia category. The Postal Service plans 
to implement Picture Permit Imprint Indicia as a price category for 
First-Class Mail and Standard Mail letters and cards. Id. at 2. The 
Postal Service states that, in response to customer requests to use 
corporate or product logos in this area of the envelope, it has 
developed guidelines, requirements, and other specifications for the 
use of images on the permit indicia area of the mailpiece. Id. It 
asserts that the Picture Permit Imprint Indicia is an innovative use 
for the permit indicia space that affords prospective customers the 
opportunity and ability to brand and advertise their products and 
services on the mailpiece. Id. It states that such mailpieces have been 
tested in the mailstream, and it believes that limited use of the 
permit indicia space of the mailpiece should be permitted at an 
appropriate price. Id. at 3.
    The Postal Service states that the Adjustment is designed to help 
keep mailers using the mail, increase the interest of mail recipients 
in the mail they receive, and generate higher revenue through a per-
piece charge over and above postage. Id. Market research by the Postal 
Service indicates that most mailers would use Picture Permit imprints 
for existing volume, although some said that they would increase their 
mailing volume. Id. Nine percent of First-Class Mail commercial 
customers and 12 percent of Standard Mail customers responded that they 
would be willing to pay a small premium to use Picture Permit imprints. 
Id. The Postal Service will charge an additional one cent per piece for 
First-Class Mail and two cents per piece for Standard Mail for the use 
of Picture Permit imprints. Id. It will require all mailings to be 
Full-Service Intelligent Mail barcodes, with each Picture Permit 
imprint to be approved by the Postal Service. Id. Mail customers will 
be responsible to defend against all legal charges for use of the 
image. Id.
    Impact on the price cap. The Postal Service states that the planned 
prices have no impact on price cap issues because they do not change 
the prices for any existing First-Class Mail or Standard Mail price 
categories. Id. Therefore, it made no cap or price change calculations 
as described in rules 3010.14(b)(1) through (4). Id.
    Objectives and factors, workshare discounts, and preferred rates. 
The Postal Service lists the relevant objectives and factors of 39 
U.S.C. 3622, and claims the Adjustment does not substantially alter the 
degree to which First-Class Mail and Standard Mail prices already 
address the objectives and factors. Id. at 4-8. In particular, the 
Postal Service contends that the Adjustment is an example of the 
increased pricing flexibility under the Postal Accountability and 
Enhancement Act (objective 4), and will encourage new mail volumes, 
which will have the effect of enhancing the financial position of the 
Postal Service (objective 5). Id. at 7, 8. Similarly, the Postal 
Service claims that the Adjustment

[[Page 20657]]

encourages increased mail volume (factor 7) and, by charging for an 
attractive new option that does not increase the Postal Service costs 
significantly, will help First-Class and Standard Mail cover 
attributable costs (factor 2). Id.
    Workshare discounts. According to the Postal Service, the 
Adjustment will not impact current workshare discounts. Id. at 8.
    Preferred rates. The same prices for Picture Permit Imprints will 
apply to Nonprofit pieces entered as Standard Mail High Density and 
Saturation Letters, Carrier Route, and Letters. Id. Based on the 
limited volumes expected to use this price category, the Postal Service 
expects that the ratio between nonprofit and commercial prices will 
remain close to 60 percent, thus meeting the statutory requirement in 
39 U.S.C. 3626(a)(6).
    Mail Classification Schedule (MCS). The Postal Service provides 
proposed MCS language in Appendix A of its Notice.

III. Commission Action

    The Commission establishes Docket No. R2012-7 to consider all 
matters related to the Notice. The Commission's rules provide for a 20-
day comment period starting from the date of the filing of the Notice. 
See 39 CFR 3010.13(a)(5). Interested persons may express views and 
offer comments on whether the planned changes are consistent with the 
policies of 39 U.S.C. 3622 and 39 CFR part 3010. Comments are due no 
later than April 17, 2012.
    The Commission appoints Katalin K. Clendenin to represent the 
interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2012-7 to consider 
matters raised by the Postal Service's March 28, 2012 Notice.
    2. Interested persons may submit comments on the planned price 
category implementation. Comments are due no later than April 17, 2012.
    3. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.
    4. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012-8161 Filed 4-4-12; 8:45 am]
BILLING CODE 7710-FW-P


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