30646 Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices 

1Request of the United States Postal Service to 

Add Direct Entry Parcels Contracts, International 

Return Service, and Harmonization Service to the 

Competitive Products List, and Notice of Filing 

(Under Seal) of Contract and Enabling Governors’ 

Decision, June 11, 2009 (Request). 

2 Governors’ Decision No. 09–10, filed June 10, 

2009, establishes prices and classifications not of 

general applicability for Direct Entry Parcels 

Contracts, International Return Service and 

Harmonization Service Offered with Customized 

Agreements. 

3Attachment 1 to the Request consists of the 

Statement of Supporting Justification. Attachment 2 

is the Decision of the Governors of the United States 

Postal Service on the Establishment of Prices and 

Classifications for Direct Entry Parcels Contracts, 

International Return Service Offered with 

Customized Agreements and Harmonization Service 

Offered with Customized Agreements (Governors’ 

Decision No. 09–7). The Governors’ Decision 

includes Attachment A–1, requested changes in the 

MCS product list; Attachment A–2, a Description of 

International Service Offered with Customized 

Agreements; Attachment A–3, Description of 

Harmonization Service Offered with Customized 

Agreements; Attachment B–1 Formulas for Prices 

Under Applicable Direct Entry Parcels Contracts; 

Attachment B–2, Formulas for Prices Under 

International Return Service Offered with 

Customized Agreements; Attachment B–3, 

Formulas for Prices Under Harmonization Service 

Offered with Customized Agreements; Attachment 

C–1, Analysis of the Formulas for Prices Under 

Direct Entry Parcels Contracts; Attachment C–2, 

Formulas for Prices Under International Return 

Service Offered with Customized Agreements; 

Attachment C–3, Formulas for Prices Under 

Harmonization Service Offered with Customized 

Agreements; and Attachment D, Certification as to 

the Formulas for Prices Offered Under Applicable 

Direct Entry Parcels Contracts, International Return 

Service Offered with Customized Agreements, and 

Harmonization Service Offered with Customized 

Agreements. 

4The Postal Service states that the Governors’ 

Decision establishes prices and classifications for 

Direct Entry Parcels Contracts. In addition, the 

Governors’ Decision also establishes prices and 

classifications for both Harmonization Service and 

International Return Service which serve as 

ancillary services for the parcel service offered for 

DEP contracts. The Postal Service intends the 

complement of services offered for DEP to include 

Harmonization Service and International Return 

Service. 

POSTAL REGULATORY COMMISSION 

[Docket Nos. MC2009–26 and CP2009– 

36; Order No. 228] 

New Postal Product 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently filed Postal Service request to 

add Direct Entry Parcels (DEP) 

Contracts, International Return Service, 

and Harmonization Service to the 

Competitive Product List. The Postal 

Service has also filed a related contract. 

This notice addresses procedural steps 

associated with these filings. 

DATES: Comments are due June 29, 2009. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

On June 11, 2009, the Postal Service 

filed a formal request pursuant to 39 

U.S.C. 3642 and 39 CFR 3020.30 et seq. 

to add Direct Entry Parcels (DEP) 

Contracts, International Return Service, 

and Harmonization Service to the 

Competitive Product List.1 The Postal 

Service indicates that Governors’ 

Decision No. 09–7, filed June 10, 2009, 

establishes prices and classifications not 

of general applicability for the three 

products.2 The Request has been 

assigned Docket No. MC2009–26. 

The Postal Service 

contemporaneously filed a DEP contract 

related to the new products pursuant to 

39 U.S.C. 3632(b)(3) and 39 CFR 3015.5. 

Request at 1. The contract has been 

assigned Docket No. CP2009–36. 

Request. The Request incorporates (1) 

A statement of supporting justification 

as required by 39 CFR 3020.32; (2) 

Governors’ Decision No. 09–7 

authorizing the new products, which 

include certification of the vote, 

requested changes to the Mail 

Classification Schedule (MCS) product 

list, and certification of the pricing 

formulas for compliance with 39 U.S.C. 

3633(a); (3) price formulas and related 

information for DEP contracts, 

International Return Service and 

Harmonization Service Offered with 

Customized Agreements; and (4) 

Certification of Compliance with 39 

U.S.C. 3633(a) for contract prices and 

ancillary services.3 Substantively, the 

Request seeks to add the Direct Entry 

Parcels Contracts, International Return 

Service, and Harmonization Service to 

the Competitive Product List. Id. at 1. 

In the statement of supporting 

justification, Frank Cebello, Global 

Business Management, 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. 

Thus, Mr. Cebello contends there will 

be no issue of subsidization of 

competitive products by market 

dominant products as a result of this 

contract. Id. 

Related contract. A redacted version 

of the instant contract is included with 

the Request. The Postal Service 

represents that the contract is consistent 

with 39 U.S.C. 3633(a), 39 CFR 3015.5 

and 39 CFR 3015.7. See id., Attachment 

2. The DEP contract includes 

International Return Service and 

Harmonization Service as optional 

features which reflect the proposed 

MCS language in Attachments A–2 and 

A–3 of the Governors’ Decision, 

respectively.4 DEP contracts provide for 

mail acceptance within the United 

States, transportation to a receiving 

country of parcels bearing the 

appropriate foreign indicia, 

transportation to customs within the 

receiving country, and customs 

clearance and prepayment of customs 

duties and taxes to the receiving 

country. The Postal Service explains 

that International Return Service 

provides for the return of refused or 

undeliverable items. It states that 

Harmonization Service offers review of 

outbound items by a licensed customs 

broker and the broker’s assignment of 

Harmonized Tariff Schedule codes to 

facilitate assessment of customs duties. 

Request at 2–3. The Postal Service notes 

that the latter two services will only be 

available through customized 

agreements, in particular through DEP 

contracts similar to the instant contract. 

The contract becomes effective within 

30 days after the Postal Service notifies 

the customer that it has received all 

required reviews and the Commission 

has provided all necessary regulatory 

approvals. The term of the agreement is 

one year from the effective date. 

The Postal Service filed much of the 

supporting materials, including 

Governors’ Decision 09–7, and financial 

information, including analysis of the 

instant contract in redacted versions 

and under seal. In its Request, the Postal 

Service maintains that the contracts and 

related financial information, including 

the customers’ names and the 

accompanying analyses that provide 

prices, terms, conditions, and financial 

projections, should remain under seal. 

Id. at 3–4. 

The Postal Service requests that the 

Commission approve this DEP contract, 

as well as any subsequent functionally 

equivalent DEP contracts, as one 

product on the Competitive Product 

List. Id. at 1–2. The Request advances 

reasons why the DEP contracts as 

described in the proposed MCS 

language are in conformity with the 

requirements of 39 U.S.C. 3642 as 

competitive products. Among other 

things, the Postal Service asserts the 

DEP contracts are intended for 

merchandise exempt from the Private 

Express Statutes; that that Postal 

Accountability and Enhancement Act 

Federal Register / Vol. 74, No. 122 / Friday, June 26, 2009 / Notices 30647 

1Notice of Establishment of Rates and Class Not 

of General Applicability (Priority Mail Contract 13), 

June 15, 2009 (Notice). 

classifies bulk international mail as 

competitive; and that classifying the 

DEP contracts as competitive is 

consistent with Commission precedent. 

It contends that even though the senders 

of DEP items may mail individual 

pieces, the contract customer has 

committed to compensate the Postal 

Service for a bulk volume of DEP items. 

The Postal Service also notes that Direct 

Entry Parcels, Harmonization, and 

International Return Services are 

contractual services not available to 

individual retail customers. Id. at 4–5. 

II. Notice of Filings 

The Commission establishes Docket 

Nos. MC2009–26 and CP2009–36 for 

consideration of the Request to add 

Direct Entry Parcels Contracts, 

International Return Service, and 

Harmonization Service to the 

Competitive Product List, and the 

related DEP Contract, 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 

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 June 29, 

2009. The public portions of these 

filings can be accessed via the 

Commission’s Web site (http:// 

www.prc.gov). 

The Commission appoints Emmett 

Rand Costich to serve as Public 

Representative in these dockets. 

III. Ordering Paragraphs 

It is Ordered: 

1. The Commission establishes Docket 

Nos. MC2009–26 and CP2009–36 for 

consideration of the matters raised in 

each docket. 

2. Pursuant to 39 U.S.C. 505, Emmett 

Rand Costich is appointed to serve as 

officer of the Commission (Public 

Representative) to represent the 

interests of the general public in these 

proceedings. 

3. Comments by interested persons in 

these proceedings are due no later than 

June 29, 2009. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Steven W. Williams, 

Secretary. 

[FR Doc. E9–15135 Filed 6–25–09; 8:45 am] 

BILLING CODE 7710–FW–P 

POSTAL REGULATORY COMMISSION 

[Docket No. CP2009–39; Order No. 224] 

Priority Mail Contract 

AGENCY: Postal Regulatory Commission. 

ACTION: Notice. 

SUMMARY: The Commission is noticing a 

recently-filed Postal Service request to 

add an additional Priority Mail contract 

to the Competitive Product List. This 

notice addresses procedural steps 

associated with this filing. 

DATES: Postal Service responses are due 

June 23, 2009. Comments are due June 

26, 2009. 

ADDRESSES: Submit comments 

electronically via the Commission’s 

Filing Online system at http:// 

www.prc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Stephen L. Sharfman, General Counsel, 

202–789–6820 and 

stephen.sharfman@prc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On June 15, 2009, the Postal Service 

filed a notice, pursuant to 39 U.S.C. 

3632(b)(3) and 39 CFR 3015.5, 

announcing that it has entered into an 

additional contract (Priority Mail 

Contract 13), which it contends fits 

within the previously proposed Priority 

Mail Contract Group product.1 In 

support, the Postal Service filed the 

proposed contract and referenced 

Governors’ Decision 09–6 filed in 

Docket No. MC2009–25. Id. at 1. 

The Notice states that the ‘‘contract 

differs from the contract filed as Priority 

Mail Contract 6 only in regards to 

negotiated prices.’’ Id. at 2. In addition, 

it states that the contract is scheduled to 

become effective the day that the 

Commission issues all necessary 

regulatory approval. Id. at 1. 

The instant contract. The Postal 

Service filed the instant contract 

pursuant to 39 U.S.C. 3632(b)(3) and 39 

CFR 3015.5. It submitted the contract 

and supporting material under seal, and 

attached a redacted copy of the contract 

and certified statement required by 39 

CFR 3015.5(c)(2) to the Notice. Id., 

Attachments A and B respectively. 

The Postal Service maintains that the 

contract and related financial 

information, including the customer’s 

name and the accompanying analyses 

that provide prices, terms, conditions, 

and financial projections should remain 

under seal. Id. at 2. 

II. Notice of Filing 

The Commission establishes Docket 

No. CP2009–39 for consideration of the 

matters related to the contract identified 

in the Postal Service’s Notice. 

The Notice does not expressly use the 

term functionally equivalent to describe 

proposed Priority Mail Contract 13. 

Instead, it appears to implicitly make 

that claim by distinguishing the instant 

contract from Priority Mail Contract 6, 

filed in Docket No. CP2009–30 as part 

of the proposed Priority Mail Contract 

Group. Id. at 2. As the Postal Service 

recognizes, the scope of the Priority 

Mail Contract Group product is 

currently pending before the 

Commission. To that end, it 

acknowledges that the Commission’s 

decision in Docket No. MC2009–25 may 

have an impact on the sufficiency of the 

Postal Service’s filings in this case. Id. 

at 1, n.1. Depending on the outcome of 

Docket No. MC2009–25, the Postal 

Service may need to file additional 

support as required in 39 CFR 3020 

subpart B. Such filings, if any, shall be 

due within 3 days of the Commission’s 

order in Docket No. MC2009–25 

addressing the scope of the proposed 

Priority Mail Contract Group product. 

Interested persons may submit 

comments on whether the instant 

contract is consistent with the policies 

of 39 U.S.C. 3632, 3633, or 3642 and 39 

CFR part 3015 and 39 CFR 3020, subpart 

B, and whether it should be classified 

within the Priority Mail Contract Group 

or as a separate product. Comments in 

this case are due no later than June 26, 

2009. 

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 this docket. 

III. Supplemental Information 

Pursuant to 39 CFR 3015.6, the 

Commission requests the Postal Service 

to provide the following supplemental 

information by June 23, 2009: 

1. Please provide a timeframe of when 

NSA partner volumes and cubic feet 

measurements were collected for each 

contract. 

2. Please provide a unit of analysis for 

volumes in each contract, e.g., whole 

numbers, thousands, etc. 

IV. Ordering Paragraphs 

It is Ordered: 

1. The Commission establishes Docket 

No. CP2009–39 for consideration of the 

issues raised in this docket. 

2. As discussed in this order, the 

Postal Service shall file supplemental