International Mail Contracts, 622-626 [E9-58]

Download as PDF 622 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Rules and Regulations payment on behalf of the mortgagor. The mortgagee is prohibited from escrowing funds at closing for all or part of the first total monthly mortgage payment. ■ 8. Revise § 4001.118(a)(1) to read as follows: existing subordinate mortgages, and non-mortgage liens on the property; less * * * * * ■ 9. In § 4001.120, revise the heading, revise paragraphs (a)(1) and (c)(2), and add paragraph (e) to read as follows: § 4001.118 § 4001.120 payment. Equity sharing. (a) Initial Equity. For purposes of section 257(k)(1) of the Act, the initial equity created as a direct result of the origination of a Program mortgage on a property, as calculated by the Program mortgage lender, shall equal: (1) The lesser of— (i) The appraised value of the property that was used at the time of origination of the Program mortgage to underwrite the mortgage and to determine compliance with the maximum loan-to-value ratio at origination established by section 257(e)(2)(B) of the Act; or (ii) The outstanding amount due under all existing senior mortgages, Appreciation sharing or upfront (a) * * * (1) In the case of— (i) A sale of the property to one or more persons none of which is a related party of the mortgagor, the gross proceeds from the sale of the property; or (ii) A disposition of the property or the sale of the property to a related party of the mortgagor, the current appraised value of the property at the time of the disposition or sale; less * * * * * (c) * * * (2) The amount of the unpaid principal and interest on such existing subordinate mortgage, as of the first day of the month in which the mortgagor made application for the Program mortgage, is at least $2,500; and * * * * * (e) Election to receive upfront payment in lieu of a share of appreciation. Upon meeting the requirements of paragraph (c) of this section, the eligible holder(s) of an existing subordinate mortgage on a property securing a Program mortgage may elect to receive, contemporaneously with the origination of the Program mortgage, a payment from FHA in an aggregate amount determined in accordance with the formula provided in Appendix A to this part in lieu of any right to receive a portion of FHA’s 50 percent interest in the future appreciation in the appraised value of such property under paragraph (c) of this section. ■ 10. Appendix A to part 4001, including its heading, is revised to read as follows: APPENDIX A TO PART 4001—CALCULATION OF UPFRONT PAYMENT OR FUTURE APPRECIATION PAYMENT Upfront payment option Percent of unpaid principal and interest that lien holder is eligible to receive # (percent) Subordinate mortgage lien holder’s cumulative combined loan-to-value ratio >135% ...................................................................................................................................... ≤135% ...................................................................................................................................... 3 4 Future appreciation option* Percent of unpaid principal and interest that lien holder is eligible to receive # (percent) 9 12 * A payment to a subordinate mortgage lien holder will depend on actual appreciation of the property as determined in accordance with 24 CFR 4001.120. Payment will be made according to the subordinate lien holder’s position of priority in relation to the property at the time the Program mortgage is originated. # Payment will be based upon principal and interest as of the first day of the month in which the borrower made application for the Program mortgage, calculated at the pre-default contract rate of interest. Dated at Washington, DC, this 31st day of December 2008. By order of the Board of Directors of the HOPE for Homeowners Program Brian D. Montgomery, Chairman of the Board. [FR Doc. E9–57 Filed 1–6–09; 8:45 am] operations and a recent Postal Service request. Republication of the lists of market dominant and competitive products is also consistent with new requirements in the law. BILLING CODE 4210–AA–P ADDRESSES: POSTAL REGULATORY COMMISSION DATES: Effective January 7, 2009. Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. [Docket Nos. MC2009–10 and CP2009–12; Order No. 162] FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202–789–6820 and stephen.sharfman@prc.gov. International Mail Contracts SUPPLEMENTARY INFORMATION: 39 CFR Part 3020 Postal Regulatory Commission. Final rule. AGENCY: ACTION: The Commission is adding Inbound International Expedited Services 2 to the Competitive Product List. This action is consistent with changes in a recent law governing postal SUMMARY: VerDate Nov<24>2008 16:09 Jan 06, 2009 Jkt 217001 Regulatory History, 73 FR 74212 (December 5, 2008). The Postal Service seeks to add a new product identified as Inbound International Expedited Services 2 to the Competitive Product List. For the reasons discussed below, the Commission approves the Request. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 I. Background On November 19, 2008, the Postal Service filed a request pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Inbound International Expedited Services 2 to the Competitive Product List.1 The Postal Service asserts that Inbound International Expedited Services 2 is a competitive product within the meaning of 39 U.S.C. 3632(b)(3). This Request has been assigned Docket No. MC2009–10. The Postal Service contemporaneously filed 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 Express Mail International (EMS) 1 Request of the United States Postal Service Regarding Inbound Express Mail International (EMS) from Foreign Posts to Add Inbound International Expedited Services 2 to Competitive Product List; and Notice of Establishment of Rates and Classifications Not of General Applicability, November 19, 2008 (Request). E:\FR\FM\07JAR1.SGM 07JAR1 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Rules and Regulations originating from foreign posts.2 The Governors’ Decision establishes EMS prices pursuant to the Universal Postal Union’s (UPU) EMS Cooperative procedures which permit each participating destination postal administration to change its charges effective January 1 of each year by notifying its partners directly or through the UPU’s International Bureau by August 31 of the year prior to the effective date.3 The Postal Service generally provides notice through the UPU International Bureau. Governors’ Decision at 1, n.2. Under the EMS Cooperative procedures, destination posts set prices for the following three pricing tiers: 1. Pay-For-Performance. Available EMS Cooperative members who elect to comply with pay-for-performance provisions. These rates also will apply to members of the Kahala Post Group; 4 2. EMS Cooperative. EMS Cooperative members who elect not to comply with pay-for-performance provisions; and 3. All Others. International posts who choose not to be members of the EMS Cooperative. Request at 2. With the exception of Inbound International Expedited Services 1 involving a bilateral agreement with the China Post Group, the Postal Service proposes that the three price tiers applicable to EMS for foreign posts whose prices are set pursuant to this process be classified as a single product, Inbound International Expedited Services 2.5 In support of its Request, the Postal Service filed a redacted version of the Governors’ Decision establishing prices and classifications for Inbound Express Mail International.6 The Postal Service also filed a Statement of Supporting Justification as required by 39 CFR 3020.32,7 certification of the Governors’ 2 The Postal Service states that at the time of Governors’ Decision No. 08–20 in this proceeding, EMS prices met all requirements of the financial model which is reflected in the decision. The financial model filed under seal in the instant case provides inputs that became available subsequent to the Governors’ vote. This model as filed has an anomaly because the margin is slightly below the threshold set by the Governors. However, the Postal Service contends that this difference should not impact the Commission’s approval of the prices that were established in August 2008 and that the cost coverage presented in the model as filed is above 100 percent and satisfies the statutory pricing criteria for competitive products. Request at 4, n.9. 3 Request, Attachment 1, at 1, see also Request at 2. 4 The Kahala Post Group is a group of postal administrations that in 2003 agreed to work together to improve international postal services, particularly for express and package services. 5 Request at 4. See PRC Order No. 84, Order Concerning the China Post Group Inbound EMS Agreement, Docket No. CP2008–7, June 27, 2008. 6 See Attachment 1 to the Request. 7 See Attachment 2 to the Request. VerDate Nov<24>2008 16:09 Jan 06, 2009 Jkt 217001 vote,8 and certification of compliance with 39 U.S.C. 3633(a).9 In addition, the Postal Service filed an unredacted copy of the Governors’ Decision, the agreements with foreign posts, and other supporting documents designed to establish compliance with 39 CFR 3015.5 under seal. Request at 1, n.2. In the Statement of Supporting Justification, Brian T. Hutchins, Manager, International Postal Relations, discusses the possibility that the Postal Service could have requested that the new product be merged with Inbound International Expedited Services 1. He notes that the prices for inbound EMS are established through bilateral negotiation (e.g., China Post Group) or unilaterally pursuant to the EMS Cooperative procedures. He further states that the Request recognizes that the ‘‘price changes for EMS were locked down in August 2008 and this is the first experience putting prices set by this method through Commission review under the [Postal Accountability and Enhancement Act (PAEA)].’’ Request, Attachment 2, at 2. The Postal Service views its Request as the simplest approach. Id. He observes, however, that the Commission could determine that inbound EMS from foreign posts be included with the existing inbound EMS product (Inbound International Expedited Services 1). Hutchins concludes that either approach ‘‘will improve the Postal Service’s competitive posture, while enabling the Commission to verify that prices set according to EMS Cooperative procedures cover their attributable costs and make a positive contribution to coverage of institutional costs.’’ Id. at 2– 3. W. Ashley Lyons, Manager, Corporate Financial Planning, Finance Department, certifies that the Inbound EMS prices comply with 39 U.S.C. 3633(a). Request, Attachment 4. He asserts that the EMS agreement ‘‘prices demonstrate that EMS should cover its attributable costs and preclude the subsidization of competitive products by market dominant products.’’ Id. The Postal Service filed much of the supporting materials, including the Governors’ Decision and the EMS agreements with foreign posts, under seal. It maintains that the EMS agreements with foreign posts, related financial information, and the Governors’ Decision should remain under seal as they contain pricing, cost, and other information that are highly confidential. Request at 5. 8 See 9 See PO 00000 Attachment 3 to the Request. Attachment 4 to the Request. Frm 00007 Fmt 4700 Sfmt 4700 623 The Postal Service classification changes established for existing EMS agreements (except for the China Post Group) in the Governors’ Decision are scheduled to take effect January 1, 2009 after review by the Commission. Governors’ Decision at 3. In Order No. 141, the Commission gave notice of the two dockets, appointed a public representative, and provided the public with an opportunity to comment.10 The Postal Service responded to the Chairman’s Information Request No. 1 on December 12, 2008. It filed an errata on December 18, 2008.11 II. Comments Comments were filed by the Public Representative and International Transport Solutions, Inc. (ITS). The Postal Service filed a reply to ITS’ comments.12 The Public Representative focuses principally on confidentiality and the adequacy of cost coverage in the agreement.13 Public Representative Comments 2–4. The Public Representative concludes that the Postal Service provides sufficient justification for the filing of materials under seal. He further notes that the cost coverage in the agreement should generate sufficient revenue so that there is no subsidization of international inbound EMS negotiated service agreements by market dominant products. Public Representative Comments at 4. ITS is in the international mail consolidation industry.14 Its market represents the import and export of bulk international mail generated from organizations. ITS Comments at 1. It focuses on section 407(e)(2) of title 39 10 PRC Order No. 141, Notice and Order Concerning Adding Inbound International Expedited Services 2 to Competitive Product List, December 1, 2008 (Order No. 141). 11 Response of United States Postal Service to Chairman’s Information Request No. 1 and Notice of Filing Responsive Materials (Under Seal), December 12, 2008; United States Postal Service Notice of Filing Errata to Response to Chairman’s Information Request No. 1, and Notice of Filing Errata to Financial Materials (Under Seal), December 18, 2008. 12 Reply to Comments of William Gensburg of International [Transport] Solutions, December 15, 2008 (Postal Service Reply). 13 Public Representative Comments in Response to United States Postal Service Request to Add Inbound International Expedited Services 2 to the Competitive Product List, and Establishment of Rates and Classifications Not of General Applicability, December 5, 2008 (Public Representative Comments). 14 Comments of William Gensburg of International Transport Solutions, Inc., December 9, 2008 (ITS Comments). This filing was accompanied by a Motion for Late Acceptance of Comments of William Gensburg of International Transport Solutions, Inc. pursuant to Order No. 141, December 9, 2008. The motion is granted. E:\FR\FM\07JAR1.SGM 07JAR1 624 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Rules and Regulations regarding application of customs laws to shipments of competitive products by the Postal Service and similar shipments by private companies. It contends that the Postal Service enjoys special regulatory advantages not available to others which it states is in direct contradiction to the requirements of the PAEA. ITS asserts the Postal Service enjoys singular customs advantages for all international mail. Id. ITS concludes that approval of the Inbound International Expedited Services 2 product will not comport with the PAEA’s mandate until the customs laws of the United States change so that all shipments by international delivery companies, including the Postal Service, are treated equally. Id. at 1–2. In its reply, the Postal Service contends that ITS has not shown that it is a ‘‘private company’’ within the context of 407(e)(1) or shown that it makes similar shipments to those imported or exported by the Postal Service. Postal Service Reply at 1. The Postal Service also argues that the organization does not present issues which are proper for consideration by the Commission or address whether the operational agreements or UPUmanaged price setting procedures comply with 39 U.S.C. 3633. Id. at 2. It further contends that ITS does not provide information on consumer or small business concerns about the placement of the product on the Competitive Product List. The Postal Service argues that section 407(e)(2) of title 39 is not relevant to this proceeding. Id. III. Commission Analysis The Commission has reviewed the contract, the financial analysis provided under seal that accompanies it, the supplemental information filed by the Postal Service in response to the Chairman’s Information Request No. 1, and the parties’ comments. The Commission’s statutory responsibilities in this instance entail assigning Inbound International Expedited Services 2 to either the Market Dominant Product List or to the Competitive Product List. 39 U.S.C. 3642. As part of this responsibility, the Commission also reviews the proposal for compliance with the PAEA, including sections 3632, 3633, and 3642 of title 39. Product list assignment. In determining whether to assign the Inbound International Expedited Services 2 as a product to the Market Dominant Product List or the Competitive Product List, the Commission must consider whether VerDate Nov<24>2008 16:09 Jan 06, 2009 Jkt 217001 the Postal Service exercises sufficient market power that it can effectively set the price of such product substantially above costs, raise prices significantly, decrease quality, or decrease output, without risk of losing a significant level of business to other firms offering similar products. 39 U.S.C. 3642(b)(1). If so, the product will be categorized as market dominant. The competitive category of products shall consist of all other products. The Commission is further required to consider the availability and nature of enterprises in the private sector engaged in the delivery of the product, the views of those who use the product, and the likely impact on small business concerns. 39 U.S.C. 3642(b)(3). The Postal Service describes the product as involving Inbound Express Mail International from foreign posts for delivery in the Postal Service’s domestic service area. It proposes that it be added as a new competitive product called Inbound International Expedited Services 2. Request at 1, Attachment 2 at 1. The Postal Service asserts that it does not have the market power to set its prices substantially above costs, to raise prices significantly, or to decrease quality of output. Request, Attachment 2, at 3. It asserts that its bargaining position is constrained by the existence of other shippers who can provide similar services, thus precluding it from taking unilateral action to increase prices without the risk of losing volume to private companies. Id. The Postal Service argues inbound EMS falls outside the Private Express Statutes. It suggests that the relevant market can be served by ‘‘[p]rivate consolidators, freight forwarders, and integrators’’ who offer ‘‘quick end-toend delivery of matter that could also be sent and delivered via EMS.’’ Id. at 4. Based on his review of the filing, the Public Representative concludes that the Postal Service’s proposal complies with title 39, and that its Request fulfills all relevant requirements of the Commission Rules of Practice and Procedure. Public Representative Comments at 5. ITS does not oppose the classification of Inbound International Expedited Services 2 as a competitive product. Rather, it argues that accepting the Postal Service’s request ‘‘cannot comport with the PAEA’s mandate’’ until customs laws change so that shipments for the Postal Service and competing international delivery companies are treated equally. ITS Comments at 2. While the Commission appreciates ITS’ concerns, the issues it raises are beyond the scope of this proceeding. The issues presented by the Postal Service’s filing are whether the PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 proposal is consistent with the policies of sections 3632, 3633, and 3642 of title 39. If ITS believes that the regulatory advantages it cites fall within the Commission’s purview, it would need to develop its claim more fully. Having considered the statutory requirements, comments filed by the parties and the support offered by the Postal Service, the Commission finds that Inbound International Expedited Services 2 is appropriately classified as a competitive product and should be added to the Competitive Product List. Cost considerations. The Governor’s Decision states that the price floor formula provides greater than 100 percent coverage of the costs attributable to each of the price tiers. Id. Attachment 1 at 2. The Postal Service provided data under seal which permitted analysis of the underlying agreements individually, by tier, and as a whole. The Postal Service’s Representative, W. Ashley Lyons, certifies that the price formula is designed to ensure that each agreement should cover its attributable costs and preclude the subsidization of competitive products by market dominant products. Based on the data submitted and the comments received, the Commission finds that Inbound International Expedited Services 2 should cover its attributable costs (39 U.S.C. 3633(a)(2)), should not lead to the subsidization of competitive products by market dominant products (39 U.S.C. 3633(a)(1)), and should have a positive effect on competitive products’ contribution to institutional costs (39 U.S.C. 3633(a)(3)). Thus, an initial review of Inbound International Expedited Services 2 indicates that it comports with the provisions applicable to rates for competitive products. Procedural considerations. The Postal Service indicates that the EMS prices established by the Governors are produced pursuant to EMS Cooperative procedures. Report, Attachment 1 at 1. The EMS Cooperative is a voluntary group established by the UPU’s Postal Operations Council. Id. at 1, n.1. Hutchins notes that the Request represents the ‘‘first experience putting prices set by this method through Commission review under the PAEA.’’ Id., Attachment 2 at 2. The Commission has concerns with the timing of the Request. The EMS Cooperative requires that new rates to take effect January 1 of the coming year be communicated to the UPU and EMS partners by August 31. There is no opportunity for an EMS Cooperative member to change its rates for the coming year after August 31. The E:\FR\FM\07JAR1.SGM 07JAR1 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Rules and Regulations Postal Service notes that the EMS prices for 2009 ‘‘were locked down in August 2008.’’ Id. at 4, n.9. The Commission’s subsequent review of these rates after August 31 is therefore problematic. If a product is found to violate the PAEA, e.g., does not satisfy section 3633(a)(2), the Postal Service may be without a suitable remedy until the next rate change is permitted for the following year, in this case 2010. However, no change of filed rates is required in this record. In response to Order 84, the Postal Service filed a list of ongoing International Expedited Services Agreements.15 The Postal Service is directed to file a similar public list organizing the instant agreements to be grouped under each of the three tiers of Inbound International Expedited Services 2. The Postal Service should also notify the Commission on a quarterly basis of additional participation by postal administrations in Pay-For-Performance and the effective date. The Postal Service shall also promptly notify the Commission if the prices terminate earlier than December 31, 2009, but no later than the actual termination date. The revision to the Competitive Product List is shown below the signature of this Order and is effective upon issuance of this order. It is Ordered: 1. Inbound International Expedited Services 2 (MC2009–10 and CP2009–12) is added to the Competitive Product List as a new product under Express Mail, Inbound International Expedited Services. 2. As discussed in the body of this order, the Postal Service shall file a list of the instant agreements to be grouped under each of the three price tiers. 3. The Postal Service shall notify the Commission if any prices terminate earlier than December 31, 2009, and of changes to countries listed in each of the three price tiers on a quarterly basis. 4. The Secretary shall arrange for the publication of this Order in the Federal Register. List of Subjects in 39 CFR Part 3020 Administrative practice and procedure, Postal Service. By the Commission. Steven W. Williams, Secretary. For the reasons stated in the preamble, under the authority at 39 U.S.C. 503, the ■ 15 See Docket No. 2008–7, United States Postal Service Response to Order No. 84 and Notice of Filing Ongoing Inbound International Expedited Services Agreements, July 23, 2008. VerDate Nov<24>2008 16:09 Jan 06, 2009 Jkt 217001 Postal Regulatory Commission amends 39 CFR part 3020 as follows: PART 3020—PRODUCT LISTS 1. The authority citation for part 3020 continues to read as follows: ■ Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682. 2. Revise Appendix A to subpart A of part 3020—Mail Classification to read as follows: ■ Appendix A to Subpart A of Part 3020—Mail Classification Schedule Part A—Market Dominant Products 1000 Market Dominant Product List First-Class Mail Single-Piece Letters/Postcards Bulk Letters/Postcards Flats Parcels Outbound Single-Piece First-Class Mail International Inbound Single-Piece First-Class Mail International Standard Mail (Regular and Nonprofit) High Density and Saturation Letters High Density and Saturation Flats/Parcels Carrier Route Letters Flats Not Flat-Machinables (NFMs)/Parcels Periodicals Within County Periodicals Outside County Periodicals Package Services Single-Piece Parcel Post Inbound Surface Parcel Post (at UPU rates) Bound Printed Matter Flats Bound Printed Matter Parcels Media Mail/Library Mail Special Services Ancillary Services International Ancillary Services Address List Services Caller Service Change-of-Address Credit Card Authentication Confirm International Reply Coupon Service International Business Reply Mail Service Money Orders Post Office Box Service Negotiated Service Agreements HSBC North America Holdings Inc. Negotiated Service Agreement Bookspan Negotiated Service Agreement Bank of America Corporation Negotiated Service Agreement The Bradford Group Negotiated Service Agreement Market Dominant Product Descriptions First-Class Mail [Reserved for Class Description] Single-Piece Letters/Postcards [Reserved for Product Description] Bulk Letters/Postcards [Reserved for Product Description] Flats [Reserved for Product Description] Parcels [Reserved for Product Description] Outbound Single-Piece First-Class Mail International PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 625 [Reserved for Product Description] Inbound Single-Piece First-Class Mail International [Reserved for Product Description] Standard Mail (Regular and Nonprofit) [Reserved for Class Description] High Density and Saturation Letters [Reserved for Product Description] High Density and Saturation Flats/Parcels [Reserved for Product Description] Carrier Route [Reserved for Product Description] Letters [Reserved for Product Description] Flats [Reserved for Product Description] Not Flat-Machinables (NFMs)/Parcels [Reserved for Product Description] Periodicals [Reserved for Class Description] Within County Periodicals [Reserved for Product Description] Outside County Periodicals [Reserved for Product Description] Package Services [Reserved for Class Description] Single-Piece Parcel Post [Reserved for Product Description] Inbound Surface Parcel Post (at UPU rates) [Reserved for Product Description] Bound Printed Matter Flats [Reserved for Product Description] Bound Printed Matter Parcels [Reserved for Product Description] Media Mail/Library Mail [Reserved for Product Description] Special Services [Reserved for Class Description] Ancillary Services [Reserved for Product Description] Address Correction Service [Reserved for Product Description] Applications and Mailing Permits [Reserved for Product Description] Business Reply Mail [Reserved for Product Description] Bulk Parcel Return Service [Reserved for Product Description] Certified Mail [Reserved for Product Description] Certificate of Mailing [Reserved for Product Description] Collect on Delivery [Reserved for Product Description] Delivery Confirmation [Reserved for Product Description] Insurance [Reserved for Product Description] Merchandise Return Service [Reserved for Product Description] Parcel Airlift (PAL) [Reserved for Product Description] Registered Mail [Reserved for Product Description] Return Receipt [Reserved for Product Description] Return Receipt for Merchandise [Reserved for Product Description] Restricted Delivery [Reserved for Product Description] Shipper-Paid Forwarding [Reserved for Product Description] Signature Confirmation [Reserved for Product Description] Special Handling [Reserved for Product Description] E:\FR\FM\07JAR1.SGM 07JAR1 626 Federal Register / Vol. 74, No. 4 / Wednesday, January 7, 2009 / Rules and Regulations Stamped Envelopes [Reserved for Product Description] Stamped Cards [Reserved for Product Description] Premium Stamped Stationery [Reserved for Product Description] Premium Stamped Cards [Reserved for Product Description] International Ancillary Services [Reserved for Product Description] International Certificate of Mailing [Reserved for Product Description] International Registered Mail [Reserved for Product Description] International Return Receipt [Reserved for Product Description] International Restricted Delivery [Reserved for Product Description] Address List Services [Reserved for Product Description] Caller Service [Reserved for Product Description] Change-of-Address Credit Card Authentication [Reserved for Product Description] Confirm [Reserved for Product Description] International Reply Coupon Service [Reserved for Product Description] International Business Reply Mail Service [Reserved for Product Description] Money Orders [Reserved for Product Description] Post Office Box Service [Reserved for Product Description] Negotiated Service Agreements [Reserved for Class Description] HSBC North America Holdings Inc. Negotiated Service Agreement [Reserved for Product Description] Bookspan Negotiated Service Agreement [Reserved for Product Description] Bank of America Corporation Negotiated Service Agreement The Bradford Group Negotiated Service Agreement Part B—Competitive Products 2000 Competitive Product List Express Mail Express Mail Outbound International Expedited Services Inbound International Expedited Services Inbound International Expedited Services 1 (CP2008–7) Inbound International Expedited Services 2 (MC2009–10 and CP2009–12) Priority Mail Priority Mail Outbound Priority Mail International Inbound Air Parcel Post Parcel Select Parcel Return Service International International Priority Airlift (IPA) International Surface Airlift (ISAL) International Direct Sacks—M-Bags Global Customized Shipping Services Inbound Surface Parcel Post (at non-UPU rates) Canada Post—United States Postal Service Contractual Bilateral Agreement for Inbound Competitive Services (MC2009–8 and CP2009–9) International Money Transfer Service International Ancillary Services VerDate Nov<24>2008 16:09 Jan 06, 2009 Jkt 217001 Special Services Premium Forwarding Service Negotiated Service Agreements Domestic Express Mail Contract 1 (MC2008–5) Express Mail Contract 2 (MC2009–3 and CP2009–4) Express Mail & Priority Mail Contract 1 (MC2009–6 and CP2009–7) Express Mail & Priority Mail Contract 2 (MC2009–12 and CP2009–14) Parcel Return Service Contract 1 (MC2009– 1 and CP2009–2) Parcel Return Select & Parcel Return Service Contract 1 (MC2009–11 and CP2009–13) Priority Mail Contract 1 (MC2008–8 and CP2008–26) Priority Mail Contract 2 (MC2009–2 and CP2009–3) Priority Mail Contract 3 (MC2009–4 and CP2009–5) Priority Mail Contract 4 (MC2009–5 and CP2009–6) Outbound International Global Expedited Package Services (GEPS) Contracts GEPS 1 (CP2008–5, CP2008–11, CP2008– 12, and CP2008–13, CP2008–18, CP2008–19, CP2008–20, CP2008–21, CP2008–22, CP2008–23 and CP2008–24) Global Plus Contracts Global Plus 1 (CP2008–9 and CP2008–10) Global Plus 2 (MC2008–7, CP2008–16 and CP2008–17) Global Direct Contracts (MC2009–9, CP2009–10 and CP2009–11) Inbound Direct Entry Contracts with Foreign Postal Administrations (MC2008–6, CP2008–14 and CP2008–15) Competitive Product Descriptions Express Mail [Reserved for Group Description] Express Mail [Reserved for Product Description] Outbound International Expedited Services [Reserved for Product Description] Inbound International Expedited Services [Reserved for Product Description] Priority [Reserved for Product Description] Priority Mail [Reserved for Product Description] Outbound Priority Mail International [Reserved for Product Description] Inbound Air Parcel Post [Reserved for Product Description] Parcel Select [Reserved for Group Description] Parcel Return Service [Reserved for Group Description] International [Reserved for Group Description] International Priority Airlift (IPA) [Reserved for Product Description] International Surface Airlift (ISAL) [Reserved for Product Description] International Direct Sacks—M-Bags [Reserved for Product Description] Global Customized Shipping Services [Reserved for Product Description] International Money Transfer Service [Reserved for Product Description] Inbound Surface Parcel Post (at non-UPU rates) [Reserved for Product Description] PO 00000 Frm 00010 Fmt 4700 Sfmt 4700 International Ancillary Services [Reserved for Product Description] International Certificate of Mailing [Reserved for Product Description] International Registered Mail [Reserved for Product Description] International Return Receipt [Reserved for Product Description] International Restricted Delivery [Reserved for Product Description] International Insurance [Reserved for Product Description] Negotiated Service Agreements [Reserved for Group Description] Domestic [Reserved for Product Description] Outbound International [Reserved for Group Description] Part C—Glossary of Terms and Conditions [Reserved] Part D—Country Price Lists for International Mail [Reserved] [FR Doc. E9–58 Filed 1–6–09; 8:45 am] BILLING CODE 7710–FW–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 19 [FRL–8760–4] RIN 2020–AA46 Civil Monetary Penalty Inflation Adjustment Rule AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule; correction. SUMMARY: This action contains a minor correction to the final Civil Monetary Penalty Inflation Adjustment Rule, which was published on December 11, 2008 (73 FR 75340) and will be effective on January 12, 2009. As mandated by the Debt Collection Improvement Act (DCIA), the rule adjusts for inflation the statutory civil penalties that may be assessed for violations of EPAadministered statutes and their implementing regulations. A corrected version of Table 1 of the regulation appears at the end of this action. DATES: This correction is effective January 12, 2009. FOR FURTHER INFORMATION CONTACT: David Abdalla, Special Litigation and Projects Division (2248A), Office of Civil Enforcement, Office of Enforcement and Compliance Assurance, U.S. Environmental Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460, (202) 564–2413. SUPPLEMENTARY INFORMATION: I. Background On December 11, 2008, EPA issued the final Civil Monetary Penalty E:\FR\FM\07JAR1.SGM 07JAR1

Agencies

[Federal Register Volume 74, Number 4 (Wednesday, January 7, 2009)]
[Rules and Regulations]
[Pages 622-626]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-58]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3020

[Docket Nos. MC2009-10 and CP2009-12; Order No. 162]


International Mail Contracts

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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SUMMARY: The Commission is adding Inbound International Expedited 
Services 2 to the Competitive Product List. This action is consistent 
with changes in a recent law governing postal operations and a recent 
Postal Service request. Republication of the lists of market dominant 
and competitive products is also consistent with new requirements in 
the law.

DATES: Effective January 7, 2009.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://www.prc.gov.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
202-789-6820 and stephen.sharfman@prc.gov.

SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 74212 (December 5, 
2008).
    The Postal Service seeks to add a new product identified as Inbound 
International Expedited Services 2 to the Competitive Product List. For 
the reasons discussed below, the Commission approves the Request.

I. Background

    On November 19, 2008, the Postal Service filed a request pursuant 
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Inbound 
International Expedited Services 2 to the Competitive Product List.\1\ 
The Postal Service asserts that Inbound International Expedited 
Services 2 is a competitive product within the meaning of 39 U.S.C. 
3632(b)(3). This Request has been assigned Docket No. MC2009-10.
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    \1\ Request of the United States Postal Service Regarding 
Inbound Express Mail International (EMS) from Foreign Posts to Add 
Inbound International Expedited Services 2 to Competitive Product 
List; and Notice of Establishment of Rates and Classifications Not 
of General Applicability, November 19, 2008 (Request).
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    The Postal Service contemporaneously filed 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 Express Mail International (EMS)

[[Page 623]]

originating from foreign posts.\2\ The Governors' Decision establishes 
EMS prices pursuant to the Universal Postal Union's (UPU) EMS 
Cooperative procedures which permit each participating destination 
postal administration to change its charges effective January 1 of each 
year by notifying its partners directly or through the UPU's 
International Bureau by August 31 of the year prior to the effective 
date.\3\ The Postal Service generally provides notice through the UPU 
International Bureau. Governors' Decision at 1, n.2.
---------------------------------------------------------------------------

    \2\ The Postal Service states that at the time of Governors' 
Decision No. 08-20 in this proceeding, EMS prices met all 
requirements of the financial model which is reflected in the 
decision. The financial model filed under seal in the instant case 
provides inputs that became available subsequent to the Governors' 
vote. This model as filed has an anomaly because the margin is 
slightly below the threshold set by the Governors. However, the 
Postal Service contends that this difference should not impact the 
Commission's approval of the prices that were established in August 
2008 and that the cost coverage presented in the model as filed is 
above 100 percent and satisfies the statutory pricing criteria for 
competitive products. Request at 4, n.9.
    \3\ Request, Attachment 1, at 1, see also Request at 2.
---------------------------------------------------------------------------

    Under the EMS Cooperative procedures, destination posts set prices 
for the following three pricing tiers:
    1. Pay-For-Performance. Available EMS Cooperative members who elect 
to comply with pay-for-performance provisions. These rates also will 
apply to members of the Kahala Post Group; \4\
---------------------------------------------------------------------------

    \4\ The Kahala Post Group is a group of postal administrations 
that in 2003 agreed to work together to improve international postal 
services, particularly for express and package services.
---------------------------------------------------------------------------

    2. EMS Cooperative. EMS Cooperative members who elect not to comply 
with pay-for-performance provisions; and
    3. All Others. International posts who choose not to be members of 
the EMS Cooperative. Request at 2.
    With the exception of Inbound International Expedited Services 1 
involving a bilateral agreement with the China Post Group, the Postal 
Service proposes that the three price tiers applicable to EMS for 
foreign posts whose prices are set pursuant to this process be 
classified as a single product, Inbound International Expedited 
Services 2.\5\
---------------------------------------------------------------------------

    \5\ Request at 4. See PRC Order No. 84, Order Concerning the 
China Post Group Inbound EMS Agreement, Docket No. CP2008-7, June 
27, 2008.
---------------------------------------------------------------------------

    In support of its Request, the Postal Service filed a redacted 
version of the Governors' Decision establishing prices and 
classifications for Inbound Express Mail International.\6\ The Postal 
Service also filed a Statement of Supporting Justification as required 
by 39 CFR 3020.32,\7\ certification of the Governors' vote,\8\ and 
certification of compliance with 39 U.S.C. 3633(a).\9\ In addition, the 
Postal Service filed an unredacted copy of the Governors' Decision, the 
agreements with foreign posts, and other supporting documents designed 
to establish compliance with 39 CFR 3015.5 under seal. Request at 1, 
n.2.
---------------------------------------------------------------------------

    \6\ See Attachment 1 to the Request.
    \7\ See Attachment 2 to the Request.
    \8\ See Attachment 3 to the Request.
    \9\ See Attachment 4 to the Request.
---------------------------------------------------------------------------

    In the Statement of Supporting Justification, Brian T. Hutchins, 
Manager, International Postal Relations, discusses the possibility that 
the Postal Service could have requested that the new product be merged 
with Inbound International Expedited Services 1. He notes that the 
prices for inbound EMS are established through bilateral negotiation 
(e.g., China Post Group) or unilaterally pursuant to the EMS 
Cooperative procedures.
    He further states that the Request recognizes that the ``price 
changes for EMS were locked down in August 2008 and this is the first 
experience putting prices set by this method through Commission review 
under the [Postal Accountability and Enhancement Act (PAEA)].'' 
Request, Attachment 2, at 2. The Postal Service views its Request as 
the simplest approach. Id. He observes, however, that the Commission 
could determine that inbound EMS from foreign posts be included with 
the existing inbound EMS product (Inbound International Expedited 
Services 1). Hutchins concludes that either approach ``will improve the 
Postal Service's competitive posture, while enabling the Commission to 
verify that prices set according to EMS Cooperative procedures cover 
their attributable costs and make a positive contribution to coverage 
of institutional costs.'' Id. at 2-3.
    W. Ashley Lyons, Manager, Corporate Financial Planning, Finance 
Department, certifies that the Inbound EMS prices comply with 39 U.S.C. 
3633(a). Request, Attachment 4. He asserts that the EMS agreement 
``prices demonstrate that EMS should cover its attributable costs and 
preclude the subsidization of competitive products by market dominant 
products.'' Id.
    The Postal Service filed much of the supporting materials, 
including the Governors' Decision and the EMS agreements with foreign 
posts, under seal. It maintains that the EMS agreements with foreign 
posts, related financial information, and the Governors' Decision 
should remain under seal as they contain pricing, cost, and other 
information that are highly confidential. Request at 5.
    The Postal Service classification changes established for existing 
EMS agreements (except for the China Post Group) in the Governors' 
Decision are scheduled to take effect January 1, 2009 after review by 
the Commission. Governors' Decision at 3.
    In Order No. 141, the Commission gave notice of the two dockets, 
appointed a public representative, and provided the public with an 
opportunity to comment.\10\ The Postal Service responded to the 
Chairman's Information Request No. 1 on December 12, 2008. It filed an 
errata on December 18, 2008.\11\
---------------------------------------------------------------------------

    \10\ PRC Order No. 141, Notice and Order Concerning Adding 
Inbound International Expedited Services 2 to Competitive Product 
List, December 1, 2008 (Order No. 141).
    \11\ Response of United States Postal Service to Chairman's 
Information Request No. 1 and Notice of Filing Responsive Materials 
(Under Seal), December 12, 2008; United States Postal Service Notice 
of Filing Errata to Response to Chairman's Information Request No. 
1, and Notice of Filing Errata to Financial Materials (Under Seal), 
December 18, 2008.
---------------------------------------------------------------------------

II. Comments

    Comments were filed by the Public Representative and International 
Transport Solutions, Inc. (ITS). The Postal Service filed a reply to 
ITS' comments.\12\
---------------------------------------------------------------------------

    \12\ Reply to Comments of William Gensburg of International 
[Transport] Solutions, December 15, 2008 (Postal Service Reply).
---------------------------------------------------------------------------

    The Public Representative focuses principally on confidentiality 
and the adequacy of cost coverage in the agreement.\13\ Public 
Representative Comments 2-4. The Public Representative concludes that 
the Postal Service provides sufficient justification for the filing of 
materials under seal. He further notes that the cost coverage in the 
agreement should generate sufficient revenue so that there is no 
subsidization of international inbound EMS negotiated service 
agreements by market dominant products. Public Representative Comments 
at 4.
---------------------------------------------------------------------------

    \13\ Public Representative Comments in Response to United States 
Postal Service Request to Add Inbound International Expedited 
Services 2 to the Competitive Product List, and Establishment of 
Rates and Classifications Not of General Applicability, December 5, 
2008 (Public Representative Comments).
---------------------------------------------------------------------------

    ITS is in the international mail consolidation industry.\14\ Its 
market represents the import and export of bulk international mail 
generated from organizations. ITS Comments at 1. It focuses on section 
407(e)(2) of title 39

[[Page 624]]

regarding application of customs laws to shipments of competitive 
products by the Postal Service and similar shipments by private 
companies. It contends that the Postal Service enjoys special 
regulatory advantages not available to others which it states is in 
direct contradiction to the requirements of the PAEA. ITS asserts the 
Postal Service enjoys singular customs advantages for all international 
mail. Id. ITS concludes that approval of the Inbound International 
Expedited Services 2 product will not comport with the PAEA's mandate 
until the customs laws of the United States change so that all 
shipments by international delivery companies, including the Postal 
Service, are treated equally. Id. at 1-2.
---------------------------------------------------------------------------

    \14\ Comments of William Gensburg of International Transport 
Solutions, Inc., December 9, 2008 (ITS Comments). This filing was 
accompanied by a Motion for Late Acceptance of Comments of William 
Gensburg of International Transport Solutions, Inc. pursuant to 
Order No. 141, December 9, 2008. The motion is granted.
---------------------------------------------------------------------------

    In its reply, the Postal Service contends that ITS has not shown 
that it is a ``private company'' within the context of 407(e)(1) or 
shown that it makes similar shipments to those imported or exported by 
the Postal Service. Postal Service Reply at 1. The Postal Service also 
argues that the organization does not present issues which are proper 
for consideration by the Commission or address whether the operational 
agreements or UPU-managed price setting procedures comply with 39 
U.S.C. 3633. Id. at 2. It further contends that ITS does not provide 
information on consumer or small business concerns about the placement 
of the product on the Competitive Product List. The Postal Service 
argues that section 407(e)(2) of title 39 is not relevant to this 
proceeding. Id.

III. Commission Analysis

    The Commission has reviewed the contract, the financial analysis 
provided under seal that accompanies it, the supplemental information 
filed by the Postal Service in response to the Chairman's Information 
Request No. 1, and the parties' comments.
    The Commission's statutory responsibilities in this instance entail 
assigning Inbound International Expedited Services 2 to either the 
Market Dominant Product List or to the Competitive Product List. 39 
U.S.C. 3642. As part of this responsibility, the Commission also 
reviews the proposal for compliance with the PAEA, including sections 
3632, 3633, and 3642 of title 39.
    Product list assignment. In determining whether to assign the 
Inbound International Expedited Services 2 as a product to the Market 
Dominant Product List or the Competitive Product List, the Commission 
must consider whether

the Postal Service exercises sufficient market power that it can 
effectively set the price of such product substantially above costs, 
raise prices significantly, decrease quality, or decrease output, 
without risk of losing a significant level of business to other 
firms offering similar products.

39 U.S.C. 3642(b)(1). If so, the product will be categorized as market 
dominant. The competitive category of products shall consist of all 
other products.
    The Commission is further required to consider the availability and 
nature of enterprises in the private sector engaged in the delivery of 
the product, the views of those who use the product, and the likely 
impact on small business concerns. 39 U.S.C. 3642(b)(3).
    The Postal Service describes the product as involving Inbound 
Express Mail International from foreign posts for delivery in the 
Postal Service's domestic service area. It proposes that it be added as 
a new competitive product called Inbound International Expedited 
Services 2. Request at 1, Attachment 2 at 1. The Postal Service asserts 
that it does not have the market power to set its prices substantially 
above costs, to raise prices significantly, or to decrease quality of 
output. Request, Attachment 2, at 3. It asserts that its bargaining 
position is constrained by the existence of other shippers who can 
provide similar services, thus precluding it from taking unilateral 
action to increase prices without the risk of losing volume to private 
companies. Id.
    The Postal Service argues inbound EMS falls outside the Private 
Express Statutes. It suggests that the relevant market can be served by 
``[p]rivate consolidators, freight forwarders, and integrators'' who 
offer ``quick end-to-end delivery of matter that could also be sent and 
delivered via EMS.'' Id. at 4.
    Based on his review of the filing, the Public Representative 
concludes that the Postal Service's proposal complies with title 39, 
and that its Request fulfills all relevant requirements of the 
Commission Rules of Practice and Procedure. Public Representative 
Comments at 5.
    ITS does not oppose the classification of Inbound International 
Expedited Services 2 as a competitive product. Rather, it argues that 
accepting the Postal Service's request ``cannot comport with the PAEA's 
mandate'' until customs laws change so that shipments for the Postal 
Service and competing international delivery companies are treated 
equally. ITS Comments at 2. While the Commission appreciates ITS' 
concerns, the issues it raises are beyond the scope of this proceeding. 
The issues presented by the Postal Service's filing are whether the 
proposal is consistent with the policies of sections 3632, 3633, and 
3642 of title 39. If ITS believes that the regulatory advantages it 
cites fall within the Commission's purview, it would need to develop 
its claim more fully.
    Having considered the statutory requirements, comments filed by the 
parties and the support offered by the Postal Service, the Commission 
finds that Inbound International Expedited Services 2 is appropriately 
classified as a competitive product and should be added to the 
Competitive Product List.
    Cost considerations. The Governor's Decision states that the price 
floor formula provides greater than 100 percent coverage of the costs 
attributable to each of the price tiers. Id. Attachment 1 at 2. The 
Postal Service provided data under seal which permitted analysis of the 
underlying agreements individually, by tier, and as a whole. The Postal 
Service's Representative, W. Ashley Lyons, certifies that the price 
formula is designed to ensure that each agreement should cover its 
attributable costs and preclude the subsidization of competitive 
products by market dominant products.
    Based on the data submitted and the comments received, the 
Commission finds that Inbound International Expedited Services 2 should 
cover its attributable costs (39 U.S.C. 3633(a)(2)), should not lead to 
the subsidization of competitive products by market dominant products 
(39 U.S.C. 3633(a)(1)), and should have a positive effect on 
competitive products' contribution to institutional costs (39 U.S.C. 
3633(a)(3)). Thus, an initial review of Inbound International Expedited 
Services 2 indicates that it comports with the provisions applicable to 
rates for competitive products.
    Procedural considerations. The Postal Service indicates that the 
EMS prices established by the Governors are produced pursuant to EMS 
Cooperative procedures. Report, Attachment 1 at 1. The EMS Cooperative 
is a voluntary group established by the UPU's Postal Operations 
Council. Id. at 1, n.1. Hutchins notes that the Request represents the 
``first experience putting prices set by this method through Commission 
review under the PAEA.'' Id., Attachment 2 at 2. The Commission has 
concerns with the timing of the Request.
    The EMS Cooperative requires that new rates to take effect January 
1 of the coming year be communicated to the UPU and EMS partners by 
August 31. There is no opportunity for an EMS Cooperative member to 
change its rates for the coming year after August 31. The

[[Page 625]]

Postal Service notes that the EMS prices for 2009 ``were locked down in 
August 2008.'' Id. at 4, n.9. The Commission's subsequent review of 
these rates after August 31 is therefore problematic. If a product is 
found to violate the PAEA, e.g., does not satisfy section 3633(a)(2), 
the Postal Service may be without a suitable remedy until the next rate 
change is permitted for the following year, in this case 2010. However, 
no change of filed rates is required in this record.
    In response to Order 84, the Postal Service filed a list of ongoing 
International Expedited Services Agreements.\15\ The Postal Service is 
directed to file a similar public list organizing the instant 
agreements to be grouped under each of the three tiers of Inbound 
International Expedited Services 2. The Postal Service should also 
notify the Commission on a quarterly basis of additional participation 
by postal administrations in Pay-For-Performance and the effective 
date. The Postal Service shall also promptly notify the Commission if 
the prices terminate earlier than December 31, 2009, but no later than 
the actual termination date.
---------------------------------------------------------------------------

    \15\ See Docket No. 2008-7, United States Postal Service 
Response to Order No. 84 and Notice of Filing Ongoing Inbound 
International Expedited Services Agreements, July 23, 2008.
---------------------------------------------------------------------------

    The revision to the Competitive Product List is shown below the 
signature of this Order and is effective upon issuance of this order.
    It is Ordered:
    1. Inbound International Expedited Services 2 (MC2009-10 and 
CP2009-12) is added to the Competitive Product List as a new product 
under Express Mail, Inbound International Expedited Services.
    2. As discussed in the body of this order, the Postal Service shall 
file a list of the instant agreements to be grouped under each of the 
three price tiers.
    3. The Postal Service shall notify the Commission if any prices 
terminate earlier than December 31, 2009, and of changes to countries 
listed in each of the three price tiers on a quarterly basis.
    4. The Secretary shall arrange for the publication of this Order in 
the Federal Register.

List of Subjects in 39 CFR Part 3020

    Administrative practice and procedure, Postal Service.

    By the Commission.
Steven W. Williams,
Secretary.

0
For the reasons stated in the preamble, under the authority at 39 
U.S.C. 503, the Postal Regulatory Commission amends 39 CFR part 3020 as 
follows:

PART 3020--PRODUCT LISTS

0
1. The authority citation for part 3020 continues to read as follows:

    Authority: 39 U.S.C. 503; 3622; 3631; 3642; 3682.


0
2. Revise Appendix A to subpart A of part 3020--Mail Classification to 
read as follows:

Appendix A to Subpart A of Part 3020--Mail Classification Schedule

Part A--Market Dominant Products
1000 Market Dominant Product List
First-Class Mail
    Single-Piece Letters/Postcards
    Bulk Letters/Postcards
    Flats
    Parcels
    Outbound Single-Piece First-Class Mail International
    Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
    High Density and Saturation Letters
    High Density and Saturation Flats/Parcels
    Carrier Route
    Letters
    Flats
    Not Flat-Machinables (NFMs)/Parcels
Periodicals
    Within County Periodicals
    Outside County Periodicals
Package Services
    Single-Piece Parcel Post
    Inbound Surface Parcel Post (at UPU rates)
    Bound Printed Matter Flats
    Bound Printed Matter Parcels
    Media Mail/Library Mail
Special Services
    Ancillary Services
    International Ancillary Services
    Address List Services
    Caller Service
    Change-of-Address Credit Card Authentication
    Confirm
    International Reply Coupon Service
    International Business Reply Mail Service
    Money Orders
    Post Office Box Service
Negotiated Service Agreements
    HSBC North America Holdings Inc. Negotiated Service Agreement
    Bookspan Negotiated Service Agreement
    Bank of America Corporation Negotiated Service Agreement
    The Bradford Group Negotiated Service Agreement
Market Dominant Product Descriptions
First-Class Mail
[Reserved for Class Description]
    Single-Piece Letters/Postcards
    [Reserved for Product Description]
    Bulk Letters/Postcards
    [Reserved for Product Description]
    Flats
    [Reserved for Product Description]
    Parcels
    [Reserved for Product Description]
    Outbound Single-Piece First-Class Mail International
    [Reserved for Product Description]
    Inbound Single-Piece First-Class Mail International
    [Reserved for Product Description]
Standard Mail (Regular and Nonprofit)
[Reserved for Class Description]
    High Density and Saturation Letters
    [Reserved for Product Description]
    High Density and Saturation Flats/Parcels
    [Reserved for Product Description]
    Carrier Route
    [Reserved for Product Description]
    Letters
    [Reserved for Product Description]
    Flats
    [Reserved for Product Description]
    Not Flat-Machinables (NFMs)/Parcels
    [Reserved for Product Description]
Periodicals
[Reserved for Class Description]
    Within County Periodicals
    [Reserved for Product Description]
    Outside County Periodicals
    [Reserved for Product Description]
Package Services
[Reserved for Class Description]
    Single-Piece Parcel Post
    [Reserved for Product Description]
    Inbound Surface Parcel Post (at UPU rates)
    [Reserved for Product Description]
    Bound Printed Matter Flats
    [Reserved for Product Description]
    Bound Printed Matter Parcels
    [Reserved for Product Description]
    Media Mail/Library Mail
    [Reserved for Product Description]
Special Services
[Reserved for Class Description]
    Ancillary Services
    [Reserved for Product Description]
    Address Correction Service
    [Reserved for Product Description]
    Applications and Mailing Permits
    [Reserved for Product Description]
    Business Reply Mail
    [Reserved for Product Description]
    Bulk Parcel Return Service
    [Reserved for Product Description]
    Certified Mail
    [Reserved for Product Description]
    Certificate of Mailing
    [Reserved for Product Description]
    Collect on Delivery
    [Reserved for Product Description]
    Delivery Confirmation
    [Reserved for Product Description]
    Insurance
    [Reserved for Product Description]
    Merchandise Return Service
    [Reserved for Product Description]
    Parcel Airlift (PAL)
    [Reserved for Product Description]
    Registered Mail
    [Reserved for Product Description]
    Return Receipt
    [Reserved for Product Description]
    Return Receipt for Merchandise
    [Reserved for Product Description]
    Restricted Delivery
    [Reserved for Product Description]
    Shipper-Paid Forwarding
    [Reserved for Product Description]
    Signature Confirmation
    [Reserved for Product Description]
    Special Handling
    [Reserved for Product Description]

[[Page 626]]

    Stamped Envelopes
    [Reserved for Product Description]
    Stamped Cards
    [Reserved for Product Description]
    Premium Stamped Stationery
    [Reserved for Product Description]
    Premium Stamped Cards
    [Reserved for Product Description]
    International Ancillary Services
    [Reserved for Product Description]
    International Certificate of Mailing
    [Reserved for Product Description]
    International Registered Mail
    [Reserved for Product Description]
    International Return Receipt
    [Reserved for Product Description]
    International Restricted Delivery
    [Reserved for Product Description]
    Address List Services
    [Reserved for Product Description]
    Caller Service
    [Reserved for Product Description]
    Change-of-Address Credit Card Authentication
    [Reserved for Product Description]
    Confirm
    [Reserved for Product Description]
    International Reply Coupon Service
    [Reserved for Product Description]
    International Business Reply Mail Service
    [Reserved for Product Description]
    Money Orders
    [Reserved for Product Description]
    Post Office Box Service
    [Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
    HSBC North America Holdings Inc. Negotiated Service Agreement
    [Reserved for Product Description]
    Bookspan Negotiated Service Agreement
    [Reserved for Product Description]
    Bank of America Corporation Negotiated Service Agreement
    The Bradford Group Negotiated Service Agreement
Part B--Competitive Products 2000 Competitive Product List
Express Mail
    Express Mail
    Outbound International Expedited Services
    Inbound International Expedited Services
    Inbound International Expedited Services 1 (CP2008-7)
    Inbound International Expedited Services 2 (MC2009-10 and 
CP2009-12)
Priority Mail
    Priority Mail
    Outbound Priority Mail International
    Inbound Air Parcel Post
Parcel Select
Parcel Return Service
International
    International Priority Airlift (IPA)
    International Surface Airlift (ISAL)
    International Direct Sacks--M-Bags
    Global Customized Shipping Services
    Inbound Surface Parcel Post (at non-UPU rates)
    Canada Post--United States Postal Service Contractual
    Bilateral Agreement for Inbound Competitive Services (MC2009-8 
and CP2009-9)
    International Money Transfer Service
    International Ancillary Services
Special Services
    Premium Forwarding Service
Negotiated Service Agreements
    Domestic
    Express Mail Contract 1 (MC2008-5)
    Express Mail Contract 2 (MC2009-3 and CP2009-4)
    Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
    Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-
14)
    Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
    Parcel Return Select & Parcel Return Service Contract 1 (MC2009-
11 and CP2009-13)
    Priority Mail Contract 1 (MC2008-8 and CP2008-26)
    Priority Mail Contract 2 (MC2009-2 and CP2009-3)
    Priority Mail Contract 3 (MC2009-4 and CP2009-5)
    Priority Mail Contract 4 (MC2009-5 and CP2009-6)
Outbound International
    Global Expedited Package Services (GEPS) Contracts
    GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008-
18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23 and 
CP2008-24)
    Global Plus Contracts
    Global Plus 1 (CP2008-9 and CP2008-10)
    Global Plus 2 (MC2008-7, CP2008-16 and CP2008-17)
    Global Direct Contracts (MC2009-9, CP2009-10 and CP2009-11)
Inbound Direct Entry Contracts with Foreign Postal Administrations 
(MC2008-6, CP2008-14 and CP2008-15)
Competitive Product Descriptions
    Express Mail
    [Reserved for Group Description]
    Express Mail
    [Reserved for Product Description]
    Outbound International Expedited Services
    [Reserved for Product Description]
    Inbound International Expedited Services
    [Reserved for Product Description]
    Priority
    [Reserved for Product Description]
    Priority Mail
    [Reserved for Product Description]
    Outbound Priority Mail International
    [Reserved for Product Description]
    Inbound Air Parcel Post
    [Reserved for Product Description]
    Parcel Select
    [Reserved for Group Description]
    Parcel Return Service
    [Reserved for Group Description]
    International
    [Reserved for Group Description]
    International Priority Airlift (IPA)
    [Reserved for Product Description]
    International Surface Airlift (ISAL)
    [Reserved for Product Description]
    International Direct Sacks--M-Bags
    [Reserved for Product Description]
    Global Customized Shipping Services
    [Reserved for Product Description]
    International Money Transfer Service
    [Reserved for Product Description]
    Inbound Surface Parcel Post (at non-UPU rates)
    [Reserved for Product Description]
    International Ancillary Services
    [Reserved for Product Description]
    International Certificate of Mailing
    [Reserved for Product Description]
    International Registered Mail
    [Reserved for Product Description]
    International Return Receipt
    [Reserved for Product Description]
    International Restricted Delivery
    [Reserved for Product Description]
    International Insurance
    [Reserved for Product Description]
    Negotiated Service Agreements
    [Reserved for Group Description]
    Domestic
    [Reserved for Product Description]
    Outbound International
    [Reserved for Group Description]
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]

 [FR Doc. E9-58 Filed 1-6-09; 8:45 am]
BILLING CODE 7710-FW-P
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