[Federal Register Volume 75, Number 168 (Tuesday, August 31, 2010)]
[Notices]
[Pages 53353-53355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21693]


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POSTAL REGULATORY COMMISSION

[Docket Nos. MC2010-34 and CP2010-95; Order No. 517]


New Postal Product

AGENCY:  Postal Regulatory Commission.

ACTION:  Notice.

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[[Page 53354]]

SUMMARY:  The Commission is noticing a recently-filed Postal Service 
request to add Inbound Competitive Multi-Service Agreements with 
Foreign Postal Operators to the competitive product list. This notice 
addresses 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 CONTACT 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#215255445149444f0f52494053474c404f615153420f464e57"><span class="__cf_email__" data-cfemail="5e2d2a3b2e363b30702d363f2c38333f301e2e2c3d70393128">[email protected]</span></a> or 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

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

I. Introduction

    On August 13, 2010, the Postal Service filed a request pursuant to 
39 U.S.C. 3642 and 39 CFR 3020.30 et seq., to add Inbound Competitive 
Multi-Service Agreements with Foreign Postal Operators (Multi-Service 
Agreements) to the competitive product list.\1\ The Postal Service 
asserts that Multi-Service Agreements are a competitive product ``not 
of general applicability'' within the meaning of 39 U.S.C. 3632(b)(3). 
This Request has been assigned Docket No. MC2010-34.
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    \1\ Request of United States Postal Service to Add Inbound 
Competitive Multi-Service Agreements with Foreign Postal Operators 
to the Competitive Product List, and Notice of Filing (Under Seal) 
of Enabling Governors' Decision and Negotiated Service Agreement, 
August 13, 2010 (Request).
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    The Postal Service contemporaneously gave notice, pursuant to 39 
U.S.C. 3632(b)(3) and 39 CFR 3015.5, that the Governors have 
established prices and classifications not of general applicability for 
Inbound Competitive Multi-Service Agreements with Foreign Postal 
Operators in Governors' Decision No. 10-3.\2\ Id. at 1-2. Additionally, 
the Postal Service filed the first agreement (TNT Agreement) with 
Koninklijke TNT Post BV and TNT Post Pakketservice Benelux BV, 
collectively ``TNT Post''. The TNT Agreement governs rates for Inbound 
Air Parcel Post (Air CP), Surface Parcel Post (Surface CP) and Express 
Mail Service (EMS), along with ancillary services. Id. at 4. The TNT 
Agreement has been assigned Docket No. CP2010-95.
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    \2\ See Request, Attachment 2.
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    In support of its Request, the Postal Service filed five 
attachments as follows:
    1. Attachment 1--Statement of Supporting Justification required by 
39 CFR 3020.32;
    2. Attachment 2--a redacted copy of Governors' Decision No. 10-3, 
which establishes prices and classifications for Inbound Competitive 
Multi-Service Agreements with Foreign Postal Operators, proposed 
descriptive Mail Classification Change (MCS) language, pricing formulas 
and certification of prices, and certification of the Governors' vote;
    3. Attachment 3--a redacted copy of the TNT Agreement;
    4. Attachment 4--a certified statement required by 39 CFR 
3015.5(c)(2); and
    5. Attachment 5--an application for non-public treatment of 
materials to maintain redacted portions of the agreement and supporting 
documents under seal.
    The Postal Service states that the Multi-Service Agreements create 
rates for competitive inbound International Mail exchanged between 
postal operators. This would include traditional mail services such as 
Air CP and EMS, as well as ancillary services. Id. at 3.
    The Postal Service asserts that this product will permit the Postal 
Service to create pricing for any combination of products in an 
equivalent agreement that meets the pricing criteria of the Governors' 
Decision. Id. at 3.
    The Postal Service states that the classification language also 
covers nontraditional services exchanged among postal operators, e.g., 
inbound direct entry, and other services offered by a foreign postal 
operation to customers under terms other than those not commonly used, 
but which are processed and delivered similar to an existing service 
within the Postal Services network. Id. at 3-4. The Postal Service 
indicates that the proposed classification language would permit the 
establishment of unique operating terms and conditions that modify the 
default arrangements of the UPU. Id. at 4.
    Related agreement. The Postal Service asserts that the terms of the 
TNT Agreement conform to the proposed MCS language. Id. The agreement, 
which is scheduled to commence October 1, 2010, covers two one-year 
periods with different rates for the second period. Id. The Postal 
Service also identifies various terms included on the TNT Agreement, 
e.g., performance metrics and electronic settlement and payment 
processes and incentives for optional activities. Id. at 4-5.
    In the Statement of Supporting Justification, Lea Emerson, 
Executive Director, International Postal Affairs, 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. Additionally, 
the Postal Service contends that its filings demonstrate compliance 
with 39 U.S.C. 3642(b). Ms. Emerson also states that Multi-Service 
Agreements are consistent with the Commission's finding in Order No. 43 
that Surface CP at Non-UPU Rates, EMS and Air CP be considered 
competitive products. Id.
    The Statement of Supporting Justification addresses the 
requirements of 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., e.g., that 
the product is properly classified as competitive and is not subject to 
the Private Express Statutes. Id. at 5-6, Attachment 1. The Postal 
Service asserts that all requisite requirements have been satisfied. 
Id. at 7.
    Joseph Moeller, Manager, Regulatory Reporting and Cost Analysis, 
Finance Department, certifies that the TNT Agreement complies with 39 
U.S.C. 3633(a). Id., Attachment 2. He asserts that the prices for the 
TNT Agreement ``should cover its attributable costs and preclude the 
subsidization of competitive products by market dominant products.'' 
Id. The Postal Service contends that the proposed classification would 
enhance its pricing flexibility and ease administrative burdens by 
enabling it to negotiate multiple inbound competitive services at once 
rather than filing separate agreements for regulatory review. Id. at 7.
    The Postal Service requests that Inbound Competitive Multi-Service 
Agreements with Foreign Postal Operators be added as a new product to 
the competitive product list. Id. at 8. It proposes that additional 
functionally equivalent contracts be added to the competitive product 
list as price categories under the Inbound Competitive Multi-Service 
Agreements with Foreign Postal Operators listing. Id. at 6.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2010-34 and CP2010-95 for 
consideration of the Request pertaining to the proposed Inbound 
Competitive Multi-Service Agreements with Foreign

[[Page 53355]]

Postal Operators, and the related rates and classifications, 
respectively. In keeping with existing 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 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR part 3015, 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 
Web site (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. 2010-21693 Filed 8-30-10; 8:45 am]
BILLING CODE 7710-FW-S


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