[Federal Register Volume 75, Number 166 (Friday, August 27, 2010)]
[Notices]
[Pages 52786-52788]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21329]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-35, R2010-5, R2010-6; Order No. 518]


New Postal Product

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice.

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SUMMARY:  The Commission is noticing a recently-filed Postal Service 
request to add Inbound Market Dominant Multi-Service Agreements with 
Foreign Postal Operators 1 to the market dominant product list. This 
notice addresses

[[Page 52787]]

procedural steps associated with the filing.

DATES:  Comments are due: August 31, 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 the FOR 
FURTHER INFORMATION section by telephone for advice on alternatives to 
electronic filing.

FOR FURTHER INFORMATION CONTACT:  Stephen L. Sharfman, General Counsel, 
<a href="/cdn-cgi/l/email-protection#17646372677f727939647f7665717a76795767657439707861"><span class="__cf_email__" data-cfemail="23505746534b464d0d504b4251454e424d635351400d444c55">[email protected]</span></a> or 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Notice of Filing
III. Ordering Paragraphs

I. Introduction

    On August 13, 2010, the Postal Service filed a request pursuant to 
39 U.S.C. 3622(c)(10) and 3642, and 39 CFR 3010.40 et seq. and 3020.30 
et seq. to add Inbound Market Dominant Multi-Service Agreements with 
Foreign Postal Operators 1 (Multi-Service Agreements 1) to the market 
dominant product list.\1\ This Request has been assigned Docket No. 
MC2010-35.
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    \1\ Request of United States Postal Service to Add Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal 
Operators to the Market Dominant Product List, Notice of Type 2 Rate 
Adjustments, and Notice of Filing Two Functionally Equivalent 
Agreements (Under Seal), August 13, 2010 (Request).
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    The Postal Service contemporaneously gave notice, pursuant to 39 
CFR 3010.40 et seq. and 39 CFR 3015.5, that the Governors have 
authorized Type 2 rate adjustments for negotiated service agreements in 
accordance with 39 CFR 3010.40 et seq. that will result generally in 
more remunerative rates than the default rates set by the Universal 
Postal Union (UPU) Acts for inbound Letter Post items. Id. 
Additionally, the Postal Service filed two functionally equivalent 
Multi-Service Agreements 1 described as follows:
    1.The Strategic Bilateral Agreement Between United States Postal 
Service and Koninklijke TNT Post BV and TNT Post Pakketservice Benelux 
BV, collectively ``TNT Post'' (TNT Agreement); and
    2.China Post Group--United States Postal Service Letter Post 
Bilateral Agreement (CPG Agreement).
    The Postal Service requests that the two Multi-Service Agreements 1 
be listed along with any subsequent functionally equivalent agreements 
as part of a single product grouping on the market dominant product 
list. Id. at 2. The TNT Agreement and CPG Agreement have been assigned 
Docket Nos. R2010-5 and R2010-6, respectively.
    In support of its Request, the Postal Service filed four 
attachments as follows:
    1. Attachment 1--proposed Mail Classification Schedule (MCS) 
language for Inbound Market Dominant Multi-Service Agreements with 
Foreign Postal Operators;
    2. Attachment 2--Statement of Supporting Justification required by 
39 CFR 3020.32;
    3. Attachments 3A and 3B--redacted copies of each agreement; and
    4. Attachment 4--an application for non-public treatment of 
materials to maintain redacted portions of the agreements and 
supporting documents under seal.
    Related agreements. Parties to the TNT Agreement are the Postal 
Service and subsidiaries of the postal operator for the Netherlands. 
The instant agreement covers inbound Letter Post in the form of 
letters, flats, small packets, bags, containers, and International 
Registered Mail service for Letter Post. Id. at 4. It also includes a 
placeholder for additional ancillary services at rates yet to be 
determined. Id.
    The CPG Agreement with the postal operator of the People's Republic 
of China includes the same inbound Letter Post items, plus delivery 
confirmation scanning with Letter Post small packets. Id. The scheduled 
effective date for both agreements is October 1, 2010. Id. at 3.
    The Postal Service states its filings comply with 39 CFR 3010.40 et 
seq. for the implementation of the negotiated service agreements. The 
Request identifies various performance attributes associated with the 
agreements, e.g., electronic settlement and payment processes. Id. at 
5-6.
    Under 39 CFR 3010.43, the Postal Service is required to submit a 
data collection plan. In response, the Postal Service indicated that it 
intends to report information on these agreements through its Annual 
Compliance Report. While indicating its willingness to provide 
information on mail flows within the annual compliance review process, 
the Postal Service proposes that no special data collection plan be 
established for these agreements. With respect to performance 
measurement, it requests that the Commission exempt these agreements 
from separate reporting requirements under 39 CFR 3055.3. Id. at 8-9.
    Functional equivalency. The Request advances reasons why the 
agreements are functionally equivalent to one another and contain the 
same attributes and methodology. Id. at 12-13. The Postal Service 
asserts that both agreements fit within the proposed MCS language, are 
with foreign postal operators, conform to a common description, and 
include similar terms and conditions.
    The Postal Service identifies specific terms that distinguish the 
agreements from one another, all of which are highlighted in the 
Request. Id. at 12-14. These include electronic settlement, 
termination, dispute resolution, and other differences. The Postal 
Service contends that the agreements nonetheless are functionally 
equivalent to each other and ``[t]he Postal Service does not consider 
that the specified differences affect either the fundamental service 
the Postal Service is offering or the fundamental structure of the 
contracts.'' Id. XI.In its Request, the Postal Service maintains that 
certain portions of the agreements and related financial information 
should remain under seal. Id., Attachment 4.
    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, reviews the factors 
of section 3622(c) and concludes, inter alia, that the revenues 
generated will cover the attributable costs of the services offered 
under the agreements and that the rates are preferable to default rates 
set by the UPU. Id., Attachment 4, at 2-3. The Request also addresses 
the requirements of 39 U.S.C. 3622 and 39 CFR 3020.30 et seq. Id. at 
10-11; Attachment 4 at 5-9.
    The Postal Service asserts its filings demonstrate compliance with 
the statute. It requests that Inbound Market Dominant Multi-Service 
Agreements With Foreign Postal Operators 1 be added to the market 
dominant product list. Id. at 11-15.

II. Notice of Filing

    The Commission establishes Docket Nos. MC2010-35, R2010-5 and 
R2010-6 for consideration of the Request pertaining to the proposed 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1, and the related rates and classifications, respectively. 
In keeping with practice, these dockets are addressed on a consolidated 
basis for purposes of this Order; however, future filings should be 
made in the specific docket in which issues being addressed pertain.
    Interested persons may submit comments on whether the Postal

[[Page 52788]]

Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3622, 3642, or
    39 CFR part 3010.40, and 39 CFR 3020 subpart B. Comments are due no 
later than August 31, 2010. The public portions of these filings can be 
accessed via the Commission's website (http://www.prc.gov).
    The Commission appoints Paul L. Harrington to serve as Public 
Representative in these dockets.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2010-35, R2010-5 and 
R2010-6 for consideration of the issues raised in this docket.
    2. Comments by interested persons in these proceedings are due no 
later than August 31, 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 these proceedings.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2010-21329 Filed 8-26-10; 8:45 am]
BILLING CODE 7710-FW-S


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