International Mail Contracts, 858-862 [E9-177]
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Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations
Likewise, the FTC is not adding new
adjustments for other statutory civil
penalty amounts that have been enacted
since the last adjustments, such as the
Energy Independence and Security Act
of 2007 section 814(a). This authority is
too recent to warrant adjustments for
inflation. Similarly, the FTC is not
adjusting section 1115(a) of the
Medicare Prescription Drug
Improvement and Modernization Act of
2003 because the amount of inflation
since the inception of this authority is
insufficient to warrant adjustment.
In light of the ministerial nature of the
adjustments, the public comment
requirements of the Administrative
Procedure Act (APA) do not apply to
this action. 5 U.S.C. 553(b)(B)
(exception when public comment is
unnecessary). For this reason, the
requirements of the Regulatory
Flexibility Act also do not apply. 5
U.S.C. 603 and 604 (no regulatory
flexibility analyses required where the
APA does not require public comment).
List of Subjects for 16 CFR Part 1
Administrative practice and
procedure, Penalties, Trade practices.
■ For the reasons set forth in the
preamble, the Federal Trade
Commission amends Title 16, chapter I,
subchapter A, of the Code of Federal
Regulations, as follows:
PART 1—GENERAL PROCEDURES
Subpart L—Civil Penalty Adjustments
Under the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
Amended by the Debt Collection
Improvement Act of 1996
1. The authority citation for subpart L
continues to read as follows:
■
Authority: 28 U.S.C. 2461 note.
2. Revise § 1.98 introductory text,
paragraphs (a) through (e), (l) and (m)
and add paragraph (n) to read as
follows:
■
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§ 1.98 Adjustment of civil monetary
penalty amounts.
This section makes inflation
adjustments in the dollar amounts of
civil monetary penalties provided by
law within the Commission’s
jurisdiction. The following civil penalty
amounts apply to violations occurring
after February 9, 2009.
(a) Section 7A(g)(1) of the Clayton
Act, 15 U.S.C. 18a(g)(1)—$16,000;
(b) Section 11(l) of the Clayton Act, 15
U.S.C. 21(l)—$7,500;
(c) Section 5(l) of the FTC Act, 15
U.S.C. 45(l)—$16,000;
(d) Section 5(m)(1)(A) of the FTC Act,
15 U.S.C. 45(m)(1)(A)—$16,000;
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(e) Section 5(m)(1)(B) of the FTC Act,
15 U.S.C. 45(m)(1)(B)—$16,000;
*
*
*
*
*
(l) Sections 525(a) and (b) of the
Energy Policy and Conservation Act, 42
U.S.C. 6395(a) and (b), respectively—
$7,500 and $16,000, respectively;
(m) Section 621(a)(2) of the Fair
Credit Reporting Act, 15 U.S.C.
1681s(a)(2)—$3,500; and
(n) Civil monetary penalties
authorized by reference to the Federal
Trade Commission Act under any other
provision of law within the jurisdiction
of the Commission—refer to the
amounts set forth in paragraphs (c), (d),
(e) and (f) of this section, as applicable.
By direction of the Commission.
Richard C. Donohue,
Acting Secretary.
[FR Doc. E9–210 Filed 1–8–09: 8:45 am]
[BILLING CODE 6750–01–S]
Correction of Publication
In FR Doc. E8–29122 appearing on
page 75568 in the Federal Register of
Friday, December 12, 2008, the
following correction is made:
§ 1926.1101
[Corrected]
On page 75589, in the first column,
Subpart Z, item 44, the instruction ‘‘In
section 1926.1101, paragraphs (h)(1)
introductory text, (h)(2), and (k)(9)(i) are
revised to read as follows:’’ is corrected
to read ‘‘In section 1926.1101,
paragraphs (h)(1) introductory text,
(h)(2)(i), and (k)(9)(i) are revised to read
as follows’’:
■
Signed at Washington, DC, this 6th day of
January 2009.
Thomas M. Stohler,
Acting Assistant Secretary of Labor for
Occupational Safety and Health.
[FR Doc. E9–311 Filed 1–8–09; 8:45 am]
BILLING CODE 4510–26–P
DEPARTMENT OF LABOR
POSTAL REGULATORY COMMISSION
Occupational Safety and Health
Administration
29 CFR Parts 1910, 1915, 1917, 1918
and 1926
ACTION:
Clarification of Employer Duty To
Provide Personal Protective
Equipment and Train Each Employee
AGENCY: Occupational Safety and Health
Administration (OSHA), U.S.
Department of Labor.
ACTION: Final rule; correction.
SUMMARY: OSHA is correcting an error
in the final rule published in the
Federal Register on December 12, 2008,
clarifying employers’ duty to provide
personal protective equipment and to
train each employee.
DATES: Effective January 12, 2009.
FOR FURTHER INFORMATION CONTACT:
Contact Ms. Jennifer Ashley, Director,
Office of Communications, OSHA, U.S.
Department of Labor, Room N–3647,
200 Constitution Avenue, NW.,
Washington, DC 20210; telephone (202)
693–1999 or fax (202) 693–1634.
SUPPLEMENTARY INFORMATION: On
December 12, 2008 (73 FR 75568),
OSHA issued a final rule entitled
‘‘Clarification of Employer Duty To
Provide Personal Protective Equipment
and Train Each Employee.’’
Subsequently, an error was discovered
in the amendatory language of that
Federal Register notice. This notice is
being published to correct that language.
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Postal Regulatory Commission.
Final rule.
AGENCY:
RIN 1218–AC42
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[Docket Nos. MC2009–7 and R2009–1; Order
No. 163]
International Mail Contracts
[Docket No. OSHA–2008–0031]
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SUMMARY: The Commission is adding
the Canada Post Bilateral Agreement for
Inbound Market Dominant Services to
the Market Dominant 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 9, 2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 and
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory
History, 73 FR 70682 (November 21,
2008).
The Postal Service seeks to add a new
product identified as Canada Post—
United States Postal Service Contractual
Bilateral Agreement for Inbound Market
Dominant Services (Bilateral Agreement
or Agreement) to the Market Dominant
Product List. For the reasons discussed
below, the Commission approves the
Request.
I. Background
On November 13, 2008, the Postal
Service filed a request pursuant to 39
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U.S.C. 3622(c)(10) and 3642, and 39
CFR 3010.40 et seq. and 3020.30 et seq.
to add the Bilateral Agreement to the
Market Dominant Product List.1 This
Request has been assigned Docket No.
MC2009–7.
The Postal Service
contemporaneously filed notice that the
Governors have authorized a Type 2 rate
adjustment to establish rates for
inbound market dominant services as
reflected in the Bilateral Agreement.2
More specifically, the Bilateral
Agreement, which has been assigned
Docket No. R2009–1, governs the
exchange of inbound air and surface
Letter Post (LC/AO) and Xpresspost
from Canada.3
The Request includes two
attachments. Attachment 1 sets forth
proposed Mail Classification Schedule
language; Attachment 2 provides a
Statement of Supporting Justification as
required by 39 CFR 3020.32. In
addition, the Postal Service indicates
that it filed an unredacted copy of the
Agreement and supporting materials
under seal. Id. at 2, n.2.
In the Statement of Supporting
Justification, Lea Emerson, Executive
Director, International Postal Affairs,
reviews the factors of section 3622(c)
and concludes, inter alia, that the
revenues generated will cover the
attributable costs of the services offered
under the Bilateral Agreement; that the
rates are preferable to default rates set
by the Universal Postal Union (UPU);
and that the rates represent a modest
increase over those reflected in the
existing bilateral agreement with
Canada Post. Id., Attachment 2, at 2–4.
In its Request, the Postal Service
provides information responsive to part
3010, subpart D of the Commission’s
rules. To that end, it addresses the
requirements of section 3622(c)(10) as
well as certain details of the negotiated
service agreement. Id. at 2–7. The Postal
Service asserts that the Bilateral
Agreement satisfies all applicable
statutory criteria. Id. at 7–8.
The Postal Service filed much of the
supporting materials, financial analysis,
and specific Bilateral Agreement under
1 Request of the United States Postal Service to
Add Canada Post—United States Postal Service
Contractual Bilateral Agreement for Inbound Market
Dominant Services to the Market Dominant Product
List, Notice of Type 2 Rate Adjustment, and Notice
of Filing Agreement (Under Seal), November 13,
2008 (Request).
2 Type 2 rate adjustments involve negotiated
service agreements. See 39 CFR 3010.5.
3 To elaborate, the Bilateral Agreement covers
Letter Post, including letters, flats, packets,
containers, and International Registered Mail
service ancillary thereto, and Canada Post’s
Xpresspost, which consists of documents and
packages containing merchandise. Request at 3.
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seal. Id. at 2, n.2. The Postal Service
maintains that the Bilateral Agreement
and related financial information should
remain under seal as they contain
pricing, cost, and other information that
is highly confidential.4 Id. at 2.
The Postal Service has an existing
bilateral agreement with Canada Post
which is set to expire December 31,
2008. Id. at 8. This instant Agreement
represents a one-year extension of the
existing agreement, with some
modifications. It has a planned effective
date of January 1, 2009. Id. at 3. The
Postal Service urges the Commission to
act promptly to allow the rates to be
implemented under 39 CFR 3010.40. Id.
at 8.
In Order No. 133, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public an opportunity to
comment.5 Pursuant to 39 CFR 3015.6,
Chairman’s Information Request No. 1
(CIR No. 1) was filed December 1, 2008,
regarding cost information with a
response due from the Postal Service by
December 8, 2008. The Postal Service
filed its information on December 8,
2008, as requested.6
II. Comments
Comments were filed by the Public
Representative.7 No filings were
submitted by other interested parties.
The Public Representative’s comments
focus principally on confidentiality and
pricing under the Agreement. Public
Representative Comments at 2–4.
The Public Representative states that
a sufficient rationale for maintaining the
confidentiality of the documents under
seal has been provided by the Postal
Service. He notes that performance
benchmarks for both parties provide
incentive to Canada Post and the Postal
4 The Postal Service indicates that the materials
filed under seal constitute a subset of the
overarching agreement between the parties.
Although unstated, presumably the subset
represents the parties’ agreement concerning
inbound market dominant services. The Postal
Service further indicates that the parties anticipate
finalizing ‘‘this and related agreements by midDecember, and any lingering details will not affect
the rates, classification, or other fundamental basis
for this Request and Notice.’’ Id. at 3, n.4.
5 PRC Order No. 133, Notice and Order
Concerning Bilateral Agreement with Canada Post
for Inbound Market Dominant Services, November
18, 2008 (Order No. 133).
6 Response of United States Postal Service to
Chairman’s Information Request No.1 and Notice of
Filing of Responsive Materials (Under Seal)
December 8, 2008 (Response to CIR No. 1).
7 Public Representative Comments in Response to
United States Postal Service Request to Add Canada
Post—United States Postal Service Contractual
Bilateral Agreement for Inbound Market Dominant
Services to the Market Dominant Product List,
Notice of Type 2 Rate Adjustment, and Notice of
Filing Agreement (Under Seal), December 3, 2008
(Public Representative Comments).
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Service to make improvements to
services. Id. at 3. He also observes that
the Postal Service indicates that the
rates of the Bilateral Agreement provide
a modest increase over the current
bilateral agreement with Canada Post.
Id. Based on his review at the filing, the
Public Representative indicates that the
Agreement is in compliance with the
requirements of 39 U.S.C. 3622 and
3642.
III. Commission Analysis
The Commission has reviewed the
Agreement, supporting information, the
financial analysis provided under seal
that accompanies it, responses to the
Chairman’s Information Request and the
comments filed by the Public
Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning the
Bilateral Agreement 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 Postal
Accountability and Enhancement Act
(PAEA) requirements. For market
dominant products this includes a
review of the section 3622(c)(10). 39
U.S.C. 3633.
Product list assignment. In
determining whether to assign the
Bilateral Agreement 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 notes the
determination was made in Order No.
43 that shipments of single-piece Letter
Post were assigned to the market
dominant category.8 The Postal Service
8 Request at 10. See Docket No. RM2007–1,
Commission Order No. 43, Order Establishing
Ratemaking Regulations for Market Dominant and
Competitive Products, October 29, 2007, para. 4003
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also represents that Canadian law
allows Canada Post an exclusive
privilege to carry outbound letters
weighing less than 500 grams (17.64
ounces). Its belief is that Canada Post is
generally dominant in the market for
letters not within its exclusive privilege,
making Canada Post the single entity
that can enter into this type of
agreement with the Postal Service.
Request at 5. The Postal Service
contends that its monopoly on inbound
letters from Canada within certain price
and weight limits make it fairly certain
that private entities would not be able
to serve the United States market for
inbound Letter Posts from Canada in
accordance with this agreement. Id.
The Postal Service also contends that
there is no significant competition in
this market. As a result, it believes the
Bilateral Agreement does not pose
competitive harm to the marketplace. Id.
at 6. It states the ‘‘marketplace’’ has a
long-term history of accommodation of
agreements between the United States
and Canada Post for these services since
such agreements have been used by both
postal administrations for inbound
single-piece Letter Post since 1888. Id.
The Postal Service asserts that the
parties to this Agreement serve as their
respective countries’ designated entities
for the exchange of mail, inclusive of
Letter Post, under rules set by the UPU.
Id. at 5. According to the Postal Service,
under the UPU guidelines, designated
operators would normally compensate
each other for the delivery of Letter Post
in compliance with terminal dues set by
the UPU, unless a bilateral agreement
between the parties existed. Id. It
represents that no other entities are
subject to terminal dues with regard to
inbound Letter Post from Canada, and
the market for these services under the
Agreement is limited to these parties.
Therefore, the Postal Service concludes
that there can be no reasonable
expectation of any competitive harm to
the marketplace. Id. at 5–6.
The Postal Service’s Request presents
the Commission with an issue of first
impression concerning the classification
of inbound Letter Post. As currently
configured, inbound Letter Post
combines both competitive and market
dominant elements.
Under the UPU, inbound Letter Post
is identified by type of transportation as
either Air Letters and Cards (Air LC) or
Surface All Other (Surface AO). As the
names suggest, Air LC consists of letters
and cards while Surface AO consists of
flats, packets, bags, and containers. All
Air LC and Surface AO mail must weigh
assigning Inbound Single-Piece First Class Mail
International to First Class Mail (Order No. 43).
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less than 2 kilograms (approximately 4.4
pounds). For purposes of the negotiated
Bilateral Agreement, however, Air LC
includes Xpresspost from Canada,
which may weigh up to 30 kilograms
(approximately 67 pounds).
Xpresspost exhibits characteristics of
a competitive product. Canada Post
advertises Xpresspost as a lower cost
alternative to private courier service.9
Xpresspost is also described as the
fastest parcel service into the United
States from Canada after Next Business
Day USA—Priority Worldwide. Once
presented to the Postal Service, inbound
Xpresspost is processed and handled as
Priority Mail. Both as a service offering
and in operational terms, Xpresspost
appears to parallel domestic Priority
Mail.
These features suggest that inbound
Letter Post from Canada should be
classified as two separate products, one
market dominant (Air LC and Surface
AO) and the other competitive
(Xpresspost). To classify Xpresspost as a
competitive product would require the
Commission to find that Xpresspost
exhibits distinct costs and market
characteristics. At this time, the Postal
Service is unable to provide separate
cost data or market data for Xpresspost
and Air LC. In future filings, the Postal
Service will be expected to develop the
necessary cost and market data to
permit a definitive determination on the
appropriate classification of Xpresspost
as either a market dominant or
competitive product.
No commenter opposes the proposed
classification of the Bilateral Agreement
as market dominant. Having considered
the statutory requirements and the
support offered by the Postal Service,
the Commission finds, for purposes of
this proceeding, that the Canada PostUnited States Postal Service Contractual
Bilateral Agreement for Inbound Market
Dominant Services may be classified as
a market dominant product and added
to the Market Dominant Product List.
Cost considerations. The Postal
Service’s filing seeks to establish a new
international mail product. The
Agreement provides delivery and
scanning performance objectives and
incentives to promote operational
improvement. The Agreement’s new
rates are to be effective January 1, 2009.
Request at 3–4. Additionally,
performance responsibilities include
Canada Post’s work sharing
arrangements, including presorting
items to a 3-digit delivery ZIP Code
9 Xpresspost—USA is a shipping service that
provides fast, guaranteed delivery at a lower cost
than a courier to every address in the United States,
including post office boxes.
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level and providing transportation for
inbound airmail items to multiple Postal
Service International Service Centers for
acceptance. Id. at 4.
The Postal Service filed information
under seal regarding financial
improvements, costs, volumes, and
anticipated revenues. The Postal Service
represents that the new Agreement
‘‘includes performance-based incentives
to promote cost reduction, increase
efficiency, and improve service
performance.’’ Id., Attachment 2, at 2.
The requirements of 39 U.S.C.
3622(c)(10) obligate the Commission,
when reviewing a negotiated service
agreement, to determine whether such
an agreement (1) Improves the net
financial position of the Postal Service
or enhances the performance of
operational functions; (2) will not cause
unreasonable harm to the marketplace;
and (3) will be available on public and
reasonable terms to similarly situated
mailers.
With respect to the first requirement,
the Postal Service uses system average
cost for inbound Air Letters and Cards
(Air LC) for inbound Letter Post from
Canada. However, this mail includes
‘‘Xpresspost,’’ a Canada Post product
that is equivalent to the Postal Service’s
domestic Priority Mail. Xpresspost
weighs up to 30 kilograms (67 pounds).
The Postal Service’s system average cost
for Air LC reflects the cost for mail
weighing up to 4.4 pounds per piece.
Thus, it is not likely that the system
average cost for Air LC captures the cost
of these much heavier weight items.10
For weight-related costs, Xpresspost
will be substantially more expensive
than the average Air LC piece because
the average weight of Xpresspost is
significantly greater than of Air LC.
Additionally, the Postal Service
writes that ‘‘Xpresspost items receive a
Delivery Confirmation scan’’ while Air
LC items do not receive such a scan.
Chairman’s Information Request No. 1,
Question 7(a). The Postal Service also
maintains that ‘‘Canada Post’s higher
per-item rate reflects this value-added
service for its Xpresspost product.’’ Id.
However, the Postal Service does not
include the cost of Delivery
Confirmation scans for Xpresspost in its
financial model. Rather, the Postal
Service uses the systemwide average
unit costs for Air LC. The most recent
estimate of unit volume-variable cost of
delivery confirmation service is
approximately 8.8 cents.11
10 Differences in shape and cube-related costs also
are not captured.
11 The Postal Service estimated the unit volumevariable cost of delivery confirmation service in
Docket No. R2006–1. See testimony of witness
Berkeley (USPS–T–39).
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For these reasons, the costs may be
understated. Because there is a lack of
Xpresspost specific costs, however, the
Commission cannot state with certainty
the cost coverage level. For purposes of
this proceeding, the Commission
accepts the Postal Service
representations. In future filings, the
Commission expects the Postal Service
to provide unit delivery, transportation,
and ‘‘other’’ costs for Xpresspost to
permit a more complete evaluation of
the cost coverage.
The Postal Service asserts that the
instant Agreement will not result in
unreasonable harm to the marketplace
because, among other things, ‘‘Canada
Post is the only entity in a position to
avail itself of an agreement with the
Postal Service of this type and scope.’’
Request at 5. Moreover, because Canada
Post and the Postal Service are their
respective countries’ designated
operators for the exchange of mail, the
Postal Service states that the market is
limited to these parties. Under the
circumstances presented in this
proceeding, the Commission finds that
Agreement will not result in
unreasonable harm to the marketplace.
The Postal Service also asserts that no
entities are similarly situated to Canada
Post because none has the ability to
tender Letter Post from Canada under
similar conditions or to serve as the
designated operator for Letter Post
originating from Canada. Id. at 7–8.
Thus, the Postal Service suggests that
the ‘‘similarly situated mailer’’ criterion
of section 3622(c)(10) is inapplicable to
this Bilateral Agreement. Id. at 8. Given
its narrow characterization of the
underlying Agreement, the Postal
Service’s position is correct. For
purposes of this proceeding, the
Commission concludes that it would be
largely an academic exercise to consider
whether a broader characterization
should be employed.
Based on the data submitted and the
comments received, the Commission
finds that the Bilateral Agreement
comports with section 3622(c)(10).
Thus, an initial review of the proposed
Bilateral Agreement indicates that it
comports with the provisions applicable
to rates for market dominant products.
The Postal Service shall promptly
notify the Commission if the Agreement
terminates earlier than the proposed
one-year term, but no later than the
actual termination date. The
Commission will then remove the
Agreement from the Mail Classification
Schedule at the earliest possible
opportunity.
In conclusion, the Commission
approves the Canada Post—United
States Postal Service contractual
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Bilateral Agreement for Inbound Market
Dominant Services as a new product.
The revision to the Market Dominant
Product List is shown below the
signature of this Order and is effective
upon issuance of this order.
IV. Ordering Paragraphs
It Is Ordered:
1. Canada Post—United States Postal
Service Contractual Bilateral Agreement
for Inbound Market Dominant Services
(MC2009–7 and R2009–1) is added to
the Market Dominant Product List as a
new product under Negotiated Service
Agreements International.
2. The Postal Service shall notify the
Commission if the Agreement
terminates earlier than the proposed
one-year term.
3. 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
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
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861
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
Inbound International
Canada Post—United States Postal Service
Contractual Bilateral Agreement for
Inbound Market Dominant Services
(MC2009–7 and R2009–1)
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]
E:\FR\FM\09JAR1.SGM
09JAR1
yshivers on PROD1PC62 with RULES
862
Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations
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]
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
VerDate Nov<24>2008
15:07 Jan 08, 2009
Jkt 217001
[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)
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
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. E9–177 Filed 1–8–09; 8:45 am]
BILLING CODE 7710–FW–P
E:\FR\FM\09JAR1.SGM
09JAR1
]]>Agencies
[Federal Register Volume 74, Number 6 (Friday, January 9, 2009)]
[Rules and Regulations]
[Pages 858-862]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-177]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-7 and R2009-1; Order No. 163]
International Mail Contracts
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding the Canada Post Bilateral Agreement
for Inbound Market Dominant Services to the Market Dominant 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 9, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 73 FR 70682 (November
21, 2008).
The Postal Service seeks to add a new product identified as Canada
Post--United States Postal Service Contractual Bilateral Agreement for
Inbound Market Dominant Services (Bilateral Agreement or Agreement) to
the Market Dominant Product List. For the reasons discussed below, the
Commission approves the Request.
I. Background
On November 13, 2008, the Postal Service filed a request pursuant
to 39
[[Page 859]]
U.S.C. 3622(c)(10) and 3642, and 39 CFR 3010.40 et seq. and 3020.30 et
seq. to add the Bilateral Agreement to the Market Dominant Product
List.\1\ This Request has been assigned Docket No. MC2009-7.
---------------------------------------------------------------------------
\1\ Request of the United States Postal Service to Add Canada
Post--United States Postal Service Contractual Bilateral Agreement
for Inbound Market Dominant Services to the Market Dominant Product
List, Notice of Type 2 Rate Adjustment, and Notice of Filing
Agreement (Under Seal), November 13, 2008 (Request).
---------------------------------------------------------------------------
The Postal Service contemporaneously filed notice that the
Governors have authorized a Type 2 rate adjustment to establish rates
for inbound market dominant services as reflected in the Bilateral
Agreement.\2\ More specifically, the Bilateral Agreement, which has
been assigned Docket No. R2009-1, governs the exchange of inbound air
and surface Letter Post (LC/AO) and Xpresspost from Canada.\3\
---------------------------------------------------------------------------
\2\ Type 2 rate adjustments involve negotiated service
agreements. See 39 CFR 3010.5.
\3\ To elaborate, the Bilateral Agreement covers Letter Post,
including letters, flats, packets, containers, and International
Registered Mail service ancillary thereto, and Canada Post's
Xpresspost, which consists of documents and packages containing
merchandise. Request at 3.
---------------------------------------------------------------------------
The Request includes two attachments. Attachment 1 sets forth
proposed Mail Classification Schedule language; Attachment 2 provides a
Statement of Supporting Justification as required by 39 CFR 3020.32. In
addition, the Postal Service indicates that it filed an unredacted copy
of the Agreement and supporting materials under seal. Id. at 2, n.2.
In the Statement of Supporting Justification, Lea Emerson,
Executive Director, International Postal Affairs, reviews the factors
of section 3622(c) and concludes, inter alia, that the revenues
generated will cover the attributable costs of the services offered
under the Bilateral Agreement; that the rates are preferable to default
rates set by the Universal Postal Union (UPU); and that the rates
represent a modest increase over those reflected in the existing
bilateral agreement with Canada Post. Id., Attachment 2, at 2-4.
In its Request, the Postal Service provides information responsive
to part 3010, subpart D of the Commission's rules. To that end, it
addresses the requirements of section 3622(c)(10) as well as certain
details of the negotiated service agreement. Id. at 2-7. The Postal
Service asserts that the Bilateral Agreement satisfies all applicable
statutory criteria. Id. at 7-8.
The Postal Service filed much of the supporting materials,
financial analysis, and specific Bilateral Agreement under seal. Id. at
2, n.2. The Postal Service maintains that the Bilateral Agreement and
related financial information should remain under seal as they contain
pricing, cost, and other information that is highly confidential.\4\
Id. at 2.
---------------------------------------------------------------------------
\4\ The Postal Service indicates that the materials filed under
seal constitute a subset of the overarching agreement between the
parties. Although unstated, presumably the subset represents the
parties' agreement concerning inbound market dominant services. The
Postal Service further indicates that the parties anticipate
finalizing ``this and related agreements by mid-December, and any
lingering details will not affect the rates, classification, or
other fundamental basis for this Request and Notice.'' Id. at 3,
n.4.
---------------------------------------------------------------------------
The Postal Service has an existing bilateral agreement with Canada
Post which is set to expire December 31, 2008. Id. at 8. This instant
Agreement represents a one-year extension of the existing agreement,
with some modifications. It has a planned effective date of January 1,
2009. Id. at 3. The Postal Service urges the Commission to act promptly
to allow the rates to be implemented under 39 CFR 3010.40. Id. at 8.
In Order No. 133, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public an
opportunity to comment.\5\ Pursuant to 39 CFR 3015.6, Chairman's
Information Request No. 1 (CIR No. 1) was filed December 1, 2008,
regarding cost information with a response due from the Postal Service
by December 8, 2008. The Postal Service filed its information on
December 8, 2008, as requested.\6\
---------------------------------------------------------------------------
\5\ PRC Order No. 133, Notice and Order Concerning Bilateral
Agreement with Canada Post for Inbound Market Dominant Services,
November 18, 2008 (Order No. 133).
\6\ Response of United States Postal Service to Chairman's
Information Request No.1 and Notice of Filing of Responsive
Materials (Under Seal) December 8, 2008 (Response to CIR No. 1).
---------------------------------------------------------------------------
II. Comments
Comments were filed by the Public Representative.\7\ No filings
were submitted by other interested parties. The Public Representative's
comments focus principally on confidentiality and pricing under the
Agreement. Public Representative Comments at 2-4.
---------------------------------------------------------------------------
\7\ Public Representative Comments in Response to United States
Postal Service Request to Add Canada Post--United States Postal
Service Contractual Bilateral Agreement for Inbound Market Dominant
Services to the Market Dominant Product List, Notice of Type 2 Rate
Adjustment, and Notice of Filing Agreement (Under Seal), December 3,
2008 (Public Representative Comments).
---------------------------------------------------------------------------
The Public Representative states that a sufficient rationale for
maintaining the confidentiality of the documents under seal has been
provided by the Postal Service. He notes that performance benchmarks
for both parties provide incentive to Canada Post and the Postal
Service to make improvements to services. Id. at 3. He also observes
that the Postal Service indicates that the rates of the Bilateral
Agreement provide a modest increase over the current bilateral
agreement with Canada Post. Id. Based on his review at the filing, the
Public Representative indicates that the Agreement is in compliance
with the requirements of 39 U.S.C. 3622 and 3642.
III. Commission Analysis
The Commission has reviewed the Agreement, supporting information,
the financial analysis provided under seal that accompanies it,
responses to the Chairman's Information Request and the comments filed
by the Public Representative.
Statutory requirements. The Commission's statutory responsibilities
in this instance entail assigning the Bilateral Agreement 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 Postal Accountability and
Enhancement Act (PAEA) requirements. For market dominant products this
includes a review of the section 3622(c)(10). 39 U.S.C. 3633.
Product list assignment. In determining whether to assign the
Bilateral Agreement 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 notes the determination was made in Order No. 43
that shipments of single-piece Letter Post were assigned to the market
dominant category.\8\ The Postal Service
[[Page 860]]
also represents that Canadian law allows Canada Post an exclusive
privilege to carry outbound letters weighing less than 500 grams (17.64
ounces). Its belief is that Canada Post is generally dominant in the
market for letters not within its exclusive privilege, making Canada
Post the single entity that can enter into this type of agreement with
the Postal Service. Request at 5. The Postal Service contends that its
monopoly on inbound letters from Canada within certain price and weight
limits make it fairly certain that private entities would not be able
to serve the United States market for inbound Letter Posts from Canada
in accordance with this agreement. Id.
---------------------------------------------------------------------------
\8\ Request at 10. See Docket No. RM2007-1, Commission Order No.
43, Order Establishing Ratemaking Regulations for Market Dominant
and Competitive Products, October 29, 2007, para. 4003 assigning
Inbound Single-Piece First Class Mail International to First Class
Mail (Order No. 43).
---------------------------------------------------------------------------
The Postal Service also contends that there is no significant
competition in this market. As a result, it believes the Bilateral
Agreement does not pose competitive harm to the marketplace. Id. at 6.
It states the ``marketplace'' has a long-term history of accommodation
of agreements between the United States and Canada Post for these
services since such agreements have been used by both postal
administrations for inbound single-piece Letter Post since 1888. Id.
The Postal Service asserts that the parties to this Agreement serve as
their respective countries' designated entities for the exchange of
mail, inclusive of Letter Post, under rules set by the UPU. Id. at 5.
According to the Postal Service, under the UPU guidelines, designated
operators would normally compensate each other for the delivery of
Letter Post in compliance with terminal dues set by the UPU, unless a
bilateral agreement between the parties existed. Id. It represents that
no other entities are subject to terminal dues with regard to inbound
Letter Post from Canada, and the market for these services under the
Agreement is limited to these parties. Therefore, the Postal Service
concludes that there can be no reasonable expectation of any
competitive harm to the marketplace. Id. at 5-6.
The Postal Service's Request presents the Commission with an issue
of first impression concerning the classification of inbound Letter
Post. As currently configured, inbound Letter Post combines both
competitive and market dominant elements.
Under the UPU, inbound Letter Post is identified by type of
transportation as either Air Letters and Cards (Air LC) or Surface All
Other (Surface AO). As the names suggest, Air LC consists of letters
and cards while Surface AO consists of flats, packets, bags, and
containers. All Air LC and Surface AO mail must weigh less than 2
kilograms (approximately 4.4 pounds). For purposes of the negotiated
Bilateral Agreement, however, Air LC includes Xpresspost from Canada,
which may weigh up to 30 kilograms (approximately 67 pounds).
Xpresspost exhibits characteristics of a competitive product.
Canada Post advertises Xpresspost as a lower cost alternative to
private courier service.\9\ Xpresspost is also described as the fastest
parcel service into the United States from Canada after Next Business
Day USA--Priority Worldwide. Once presented to the Postal Service,
inbound Xpresspost is processed and handled as Priority Mail. Both as a
service offering and in operational terms, Xpresspost appears to
parallel domestic Priority Mail.
---------------------------------------------------------------------------
\9\ Xpresspost--USA is a shipping service that provides fast,
guaranteed delivery at a lower cost than a courier to every address
in the United States, including post office boxes.
---------------------------------------------------------------------------
These features suggest that inbound Letter Post from Canada should
be classified as two separate products, one market dominant (Air LC and
Surface AO) and the other competitive (Xpresspost). To classify
Xpresspost as a competitive product would require the Commission to
find that Xpresspost exhibits distinct costs and market
characteristics. At this time, the Postal Service is unable to provide
separate cost data or market data for Xpresspost and Air LC. In future
filings, the Postal Service will be expected to develop the necessary
cost and market data to permit a definitive determination on the
appropriate classification of Xpresspost as either a market dominant or
competitive product.
No commenter opposes the proposed classification of the Bilateral
Agreement as market dominant. Having considered the statutory
requirements and the support offered by the Postal Service, the
Commission finds, for purposes of this proceeding, that the Canada
Post-United States Postal Service Contractual Bilateral Agreement for
Inbound Market Dominant Services may be classified as a market dominant
product and added to the Market Dominant Product List.
Cost considerations. The Postal Service's filing seeks to establish
a new international mail product. The Agreement provides delivery and
scanning performance objectives and incentives to promote operational
improvement. The Agreement's new rates are to be effective January 1,
2009. Request at 3-4. Additionally, performance responsibilities
include Canada Post's work sharing arrangements, including presorting
items to a 3-digit delivery ZIP Code level and providing transportation
for inbound airmail items to multiple Postal Service International
Service Centers for acceptance. Id. at 4.
The Postal Service filed information under seal regarding financial
improvements, costs, volumes, and anticipated revenues. The Postal
Service represents that the new Agreement ``includes performance-based
incentives to promote cost reduction, increase efficiency, and improve
service performance.'' Id., Attachment 2, at 2.
The requirements of 39 U.S.C. 3622(c)(10) obligate the Commission,
when reviewing a negotiated service agreement, to determine whether
such an agreement (1) Improves the net financial position of the Postal
Service or enhances the performance of operational functions; (2) will
not cause unreasonable harm to the marketplace; and (3) will be
available on public and reasonable terms to similarly situated mailers.
With respect to the first requirement, the Postal Service uses
system average cost for inbound Air Letters and Cards (Air LC) for
inbound Letter Post from Canada. However, this mail includes
``Xpresspost,'' a Canada Post product that is equivalent to the Postal
Service's domestic Priority Mail. Xpresspost weighs up to 30 kilograms
(67 pounds). The Postal Service's system average cost for Air LC
reflects the cost for mail weighing up to 4.4 pounds per piece. Thus,
it is not likely that the system average cost for Air LC captures the
cost of these much heavier weight items.\10\ For weight-related costs,
Xpresspost will be substantially more expensive than the average Air LC
piece because the average weight of Xpresspost is significantly greater
than of Air LC.
---------------------------------------------------------------------------
\10\ Differences in shape and cube-related costs also are not
captured.
---------------------------------------------------------------------------
Additionally, the Postal Service writes that ``Xpresspost items
receive a Delivery Confirmation scan'' while Air LC items do not
receive such a scan. Chairman's Information Request No. 1, Question
7(a). The Postal Service also maintains that ``Canada Post's higher
per-item rate reflects this value-added service for its Xpresspost
product.'' Id. However, the Postal Service does not include the cost of
Delivery Confirmation scans for Xpresspost in its financial model.
Rather, the Postal Service uses the systemwide average unit costs for
Air LC. The most recent estimate of unit volume-variable cost of
delivery confirmation service is approximately 8.8 cents.\11\
---------------------------------------------------------------------------
\11\ The Postal Service estimated the unit volume-variable cost
of delivery confirmation service in Docket No. R2006-1. See
testimony of witness Berkeley (USPS-T-39).
---------------------------------------------------------------------------
[[Page 861]]
For these reasons, the costs may be understated. Because there is a
lack of Xpresspost specific costs, however, the Commission cannot state
with certainty the cost coverage level. For purposes of this
proceeding, the Commission accepts the Postal Service representations.
In future filings, the Commission expects the Postal Service to provide
unit delivery, transportation, and ``other'' costs for Xpresspost to
permit a more complete evaluation of the cost coverage.
The Postal Service asserts that the instant Agreement will not
result in unreasonable harm to the marketplace because, among other
things, ``Canada Post is the only entity in a position to avail itself
of an agreement with the Postal Service of this type and scope.''
Request at 5. Moreover, because Canada Post and the Postal Service are
their respective countries' designated operators for the exchange of
mail, the Postal Service states that the market is limited to these
parties. Under the circumstances presented in this proceeding, the
Commission finds that Agreement will not result in unreasonable harm to
the marketplace.
The Postal Service also asserts that no entities are similarly
situated to Canada Post because none has the ability to tender Letter
Post from Canada under similar conditions or to serve as the designated
operator for Letter Post originating from Canada. Id. at 7-8. Thus, the
Postal Service suggests that the ``similarly situated mailer''
criterion of section 3622(c)(10) is inapplicable to this Bilateral
Agreement. Id. at 8. Given its narrow characterization of the
underlying Agreement, the Postal Service's position is correct. For
purposes of this proceeding, the Commission concludes that it would be
largely an academic exercise to consider whether a broader
characterization should be employed.
Based on the data submitted and the comments received, the
Commission finds that the Bilateral Agreement comports with section
3622(c)(10). Thus, an initial review of the proposed Bilateral
Agreement indicates that it comports with the provisions applicable to
rates for market dominant products.
The Postal Service shall promptly notify the Commission if the
Agreement terminates earlier than the proposed one-year term, but no
later than the actual termination date. The Commission will then remove
the Agreement from the Mail Classification Schedule at the earliest
possible opportunity.
In conclusion, the Commission approves the Canada Post--United
States Postal Service contractual Bilateral Agreement for Inbound
Market Dominant Services as a new product. The revision to the Market
Dominant Product List is shown below the signature of this Order and is
effective upon issuance of this order.
IV. Ordering Paragraphs
It Is Ordered:
1. Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Market Dominant Services (MC2009-7 and R2009-1)
is added to the Market Dominant Product List as a new product under
Negotiated Service Agreements International.
2. The Postal Service shall notify the Commission if the Agreement
terminates earlier than the proposed one-year term.
3. 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
Inbound International
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Market Dominant Services (MC2009-7 and R2009-
1)
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]
[[Page 862]]
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]
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. E9-177 Filed 1-8-09; 8:45 am]
BILLING CODE 7710-FW-P
