New International Mail Contract, 7648-7652 [E9-2960]
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Federal Register / Vol. 74, No. 32 / Thursday, February 19, 2009 / Rules and Regulations
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 155
[Docket No. USCG–1998–3417]
RIN 1625–AA19 (Formerly RIN 2115–AF60)
Salvage and Marine Firefighting
Requirements; Vessel Response Plans
for Oil
Correction
In rule document E8–30604 beginning
on page 80618 in the issue of
Wednesday, December 31, 2008, make
the following correction:
§155.4030
FR 66543, revising the portion of the
Rating Schedule regarding disabilities of
the eye. One of the revised regulations
contains an incorrect reference. In 38
CFR 4.77(a), as revised, we state ‘‘In all
cases, the results must be recorded on
a standard Goldmann chart (see Figure
1), and the Goldmann chart must be
included with the examination report.’’
However, Figure 1 is not the Goldmann
chart; rather, Figure 2 contains the
chart. Stating ‘‘Figure 1’’ instead of
‘‘Figure 2’’ was an inadvertent mistake.
This document corrects that error. We
intend no substantive change by this
correction, only to revise an incorrect
reference.
List of Subjects in 38 CFR Part 4
Disability benefits, Pensions,
Veterans.
[Corrected]
On page 80651, in § 155.4030(b), in
TABLE 155.4030(b)—SALVAGE AND
MARINE FIREFIGHTING SERVICES
AND RESPONSE TIMEFRAMES, in
entry (2), in the fourth column,
‘‘*COM041* CONUS:’’ should read
‘‘CONUS:’’
Approved: February 12, 2009.
William F. Russo,
Director of Regulations Management.
For the reason set out in the preamble,
38 CFR part 4 is corrected as follows:
■
[FR Doc. Z8–30604 Filed 2–18–09; 8:45 am]
BILLING CODE 1505–01–D
PART 4—SCHEDULE FOR RATING
DISABILITIES
1. The authority citation for part 4
continues to read as follows:
■
DEPARTMENT OF VETERANS
AFFAIRS
Authority: 38 U.S.C. 1155, unless
otherwise noted.
38 CFR Part 4
§ 4.77
RIN 2900–AH43
■
Schedule for Rating Disabilities; Eye;
Correction
[FR Doc. E9–3478 Filed 2–18–09; 8:45 am]
[Corrected]
2. In § 4.77(a) remove ‘‘(see Figure 1)’’
and add, in its place, ‘‘(see Figure 2)’’.
BILLING CODE 8320–01–P
Department of Veterans Affairs.
ACTION: Correcting amendment.
AGENCY:
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SUMMARY: This document contains a
minor correction to the final regulations
that the Department of Veterans Affairs
(VA) published at 73 FR 66543 on
November 10, 2008. The rulemaking
revised the portion of VA’s Schedule for
Rating Disabilities that addresses
disabilities of the eye. One of the
revised regulations contains an incorrect
reference, and this document corrects
that error.
DATES: Effective Date: February 19,
2009.
FOR FURTHER INFORMATION CONTACT:
Maya Ferrandino, Regulations Staff
(211D), Compensation and Pension
Service, Veterans Benefits
Administration, Department of Veterans
Affairs, 810 Vermont Avenue, NW.,
Washington, DC 20420, (727) 319–5847.
(This is not a toll-free number).
SUPPLEMENTARY INFORMATION: VA
published a document in the Federal
Register on November 10, 2008, at 73
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–14 and CP2009–20;
Order No. 178]
New International Mail Contract
Postal Regulatory Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: The Commission is adding a
new product identified as International
Business Reply Service Contract 1 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 Date: February 19,
2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
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202–789–6820 and
stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Regulatory History, 74 FR 1263
(January 12, 2009).
The Postal Service seeks to add a new
product identified as International
Business Reply Service Contract 1 to the
Competitive Product List. For the
reasons discussed below, the
Commission approves the Request.
I. Background
On December 24, 2008, the Postal
Service filed a formal request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30
et seq. to add International Business
Reply Service Contract 1 to the
Competitive Product List.1 The Postal
Service asserts that the International
Business Reply Service Contract 1
product is a competitive product ‘‘not of
general applicability’’ within the
meaning of 39 U.S.C. 3632(b)(3). This
Request has been assigned Docket No.
MC2009–14.
The Postal Service
contemporaneously filed a contract
related to the proposed new product
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5. The contract has been
assigned Docket No. CP2009–20.
In support of its Request, the Postal
Service initially filed the following
materials: (1) A statement of supporting
justification for this Request as required
by 39 CFR 3020.32; 2 (2) a redacted
Decision of the Governors of the United
States Postal Service on the
Establishment of Prices and
Classifications for International
Business Reply Service (IBRS) Contracts
(Governors’ Decision No. 08–24); 3 (3)
proposed Mail Classification Schedule
language; 4 (4) a redacted copy of the
price floor and price ceiling formulas
approved by the Governors; 5 (5) a
redacted copy of the analysis of the
proposed price floor and price ceilings
discussed in Attachment B; 6 (6) a
1 Request of the United States Postal Service to
Add International Business Reply Service Contracts
to the Competitive Products List, and Notice Filing
(Under Seal) Contract and Enabling Governors’
Decision, December 24, 2008 (Request). For the
reasons discussed in footnote 1 of Commission
Order No. 164, the Commission preliminarily
renamed the proposed product ‘‘International
Business Reply Service Contract 1.’’See PRC Order
No. 164, Notice and Order Concerning International
Business Reply Service Contract 1 Negotiated
Service Agreement, January 5, 2009, at 1, n.1 (Order
No. 164). In this Order, the Commission finalizes
the product name as ‘‘International Business Reply
Service Competitive Contract 1.’’ See infra section
IV for a more complete discussion on naming the
proposed new product.
2 Attachment 1.
3 Attachment 2.
4 Attachment 2, Attachment A.
5 Attachment 2, Attachment B.
6 Attachment 2, Attachment C.
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redacted certification as to the formulas
for prices offered under applicable
International Business Reply Service
contracts; 7 and (7) a redacted
certification of compliance with 39
U.S.C. 3633(a) for the IBRS contract at
issue in Docket No. CP2009–20.8
Unredacted copies of the Governors’
Decision, the IBRS contract, the
certification, and other supporting
documentation regarding compliance
with 39 CFR 3015.5 were filed
separately with the Commission under
seal. In its Request, the Postal Service
maintains that the contract and related
financial information, including the
customer’s name and the accompanying
analyses that provide prices, terms,
conditions, and financial projections,
should remain confidential. Request at
2–3.
In the Statement of Supporting
Justification, Jo Ann Miller, Director,
Global Business Development, asserts
that the service to be provided under the
contract will cover its attributable costs,
make a positive contribution to coverage
of institutional costs, and will increase
contribution toward the requisite 5.5
percent of the Postal Service’s total
institutional costs. Id., Attachment 1.
Thus, Ms. Miller contends there will be
no issue of subsidization of competitive
products by market dominant products
as a result of this contract. Id. W. Ashley
Lyons, Manager, Corporate Financial
Planning, Finance Department, certifies
that the contract and the formulas
established by the Governors’ Decision
comply with 39 U.S.C. 3633(a). See id.,
Attachment 2 at Attachment D and
Attachment 3.
II. Procedural History
In Order No. 164, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.9 The order also sought
further information from the Postal
Service with respect to the following
areas: (1) Information relating to the
proposed product name in an attempt to
avoid confusion with the domestic
product Merchandise Return Service
(MRS) and the market dominant IBRS
product; (2) an explanation as to why a
redacted version of the contract
proposed in Docket No. CP2009–20
could not be filed; and (3) additional
IBRS contracts with contingency
arrangements that are currently in effect.
Id. at 3–6.
On January 12, 2009, the Postal
Service filed its response to Order No.
7 Attachment
2, Attachment D.
3.
9 See generally Order No. 164.
8 Attachment
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164.10 As part of its response, the Postal
Service filed a redacted version of the
Docket No. CP2009–20 contract.11 It
also filed the contingency arrangements
with this and other IBRS contract
customers both in redacted and
unredacted form.12 Additionally, the
Postal Service answered the
Commission’s questions regarding the
classification and naming of the new
IBRS Contract 1 product.13 The Postal
Service explained that it believes that
several factors weigh in favor of naming
this new proposed competitive product
International Business Reply Service
Contract 1. First, with respect to the
differences between domestic MRS and
the proposed new product, the Postal
Service notes that MRS does not contain
a weight restriction while IBRS is
limited to those items that qualify as
Letter Post under the Universal Postal
Union’s (UPU) definition of the term.
Second, it notes that customers and
foreign postal administrations use and
understand the term IBRS in connection
with lightweight merchandise items, as
well as letters and cards. Third, the
Postal Service believes that any
necessary distinctions have been made
clear in its proposed MCS language for
IBRS contracts.14 If, however, the
Commission determines that a change of
designation is needed to provide further
clarity, the Postal Service recommends
that such change be limited to the
listing on the product list.15 As an
example of a revised product name that
could provide more clarity, the Postal
Service used the term ‘‘International
Business Reply Service (AO) Contract
1’’ to reflect the fact that the UPU uses
the abbreviation AO for autres objects or
Letter Post items other than letters or
cards. Id. at 3–4.
On January 16, 2009, a Chairman’s
Information Request No. 1 and Notice of
Filing of Questions Under Seal was
10 Response of the United States Postal Service to
Order No. 164, and Notice of Filing Redacted
Contract and Other Requested Materials, January
12, 2009 (Response to Order No. 164).
11 Id. at Attachment 1.
12 Id. at Attachments 2–A, 2–B, and 2–C.
13 With respect to the Commission concern that
MRS may be better classified as a competitive
product, the Postal Service stated that it is currently
conducting a review of all special services,
including MRS, to determine if any products should
be transferred to the Competitive Product List.
14 Specifically, the proposed MCS language limits
the proposed new product, IBRS Contract 1, to
Letter Post items not subject to the Private Express
Statutes. On the other hand, the market dominant
IBRS product only covers items subject to the
Private Express Statutes.
15 It asks the Commission not to require an
adjustment of inventory or processes on behalf of
the Postal Service, its customers, or its foreign
postal administration partners.
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issued.16 The Postal Service filed its
response (under seal) to these questions
on January 23, 2009.17
III. Comments
Comments were filed by the Public
Representative.18 No filings were
submitted by other interested parties.
The Public Representative believes the
addition of the proposed product to the
Competitive Product List and the
approval of the proposed contract is in
the interest of the general public and is
consistent with the statutory
requirements of 39 U.S.C. 3632, 3633
and 3642. Public Representative
Comments at 2–3. He further states that
the agreement appears beneficial to the
general public. Id. At 4–6. He also
believes that, considering the
circumstances of the contract, the Postal
Service has provided sufficient
transparency to the public. Id. at 3–4.
IV. Commission Analysis
The Commission has reviewed the
Request, the Response to Order No. 164,
the Response to CIR No. 1, the contract,
the financial analysis provided under
seal that accompanies it, and the
comments filed by the Public
Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning IBRS
Contract 1 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. This includes, for
proposed competitive products, a
review of the provisions applicable to
rates for competitive products. 39 U.S.C.
3633.
Product list assignment. The Postal
Service asserts that IBRS Contract 1
should be classified as competitive
because the contracts at issue concern
items outside the definition of letters,
and ‘‘the PAEA clearly requires that
bulk international mail be classified as
competitive.’’ Request at 5.19 These
arguments do not support the proposed
classification. First, in determining
whether to assign IBRS Contract 1 as a
16 Chairman’s Information Request No. 1 and
Notice of Filing of Questions Under Seal, January
16, 2009 (CIR No. 1).
17 Notice of Filing United States Postal Service
Responses to Chairman’s Information Request No.
1 (Under Seal), January 23, 2009 (Response to CIR
No. 1).
18 Public Representative Comments in Response
to Commission Order No. 164, January 14, 2009
(Public Representative Comments).
19 It also cites other factors supporting the ‘‘bulk’’
status. Id.
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product to the Market Dominant
Product List or the Competitive Product
List, the Commission must consider,
under section 3642, 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.
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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. While
the inclusion or exclusion of a product
from the postal monopoly may be an
important factor for the Commission to
weigh in determining whether a product
should be classified as market dominant
or competitive, it is not determinative.
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).
Second, the PAEA does not ‘‘require’’
newly proposed ‘‘bulk international
mail’’ to be classified as competitive. In
title 39, chapter 36, subchapter II, the
Commission created the original
competitive product list, including
identifying several bulk international
mail products.20 Section 3631 explicitly
states that the competitive product list
shall consist of ‘‘[certain products]
subject to subsection (d) 21 and any
changes the Postal Regulatory
Commission may make under section
3642.’’ 39 U.S.C. 3631(a) (emphasis
added). Once that initial determination
was made in Order No. 43, products
may be added to, transferred between,
or deleted from the product lists in
accordance with section 3642.
The Postal Service 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 competitors.
Request, Attachment 1, para. (d). The
Postal Service also contends that it may
not decrease quality or output without
risking the loss of business to
competitors that offer similar services.
Id. It further states that it has no specific
20 Docket No. RM2007–1, Order Establishing
Ratemaking Regulations for Market Dominant and
Competitive Products, October 29, 2007 (Order No.
43).
21 Subsection (d) of 39 U.S.C. 3631 originated in
S. 662, 109th Cong. section 203 (2005). It was not
present in H.R. 22, the House version of the bill,
and was not present in H.R. 6407, the final version
of the bill that became the PAEA.
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data on the contract partner’s views
regarding the regulatory classification of
these types of contracts. Id. at para. (g).
Finally, the Postal Service states that the
market for these services is highly
competitive and only large shipping
companies, consolidators, and freight
forwarders serve this market.
Accordingly, the Postal Service states
that it is unaware of any small business
concerns that could offer comparable
service for these types of customers. Id.
at para. (h). Additionally, the Postal
Service submits that by offering IBRS
contracts, it is giving small businesses
an additional option for shipping
articles internationally. Thus, this
results in a net impact on small
businesses that is positive. Id.
No commenter opposes the proposed
classification of International Business
Reply Service Contract 1 as competitive.
The proper classification of the new
IBRS Contract 1 product is not readily
apparent. The Postal Service’s
supporting justification does not appear
to address the specifics of this particular
product. Nonetheless, in this case,
having considered the statutory
requirements and circumstances of this
case, the Commission finds that
International Business Reply Service
Contract 1 is appropriately classified as
a competitive product and should be
added to the Competitive Product List.
In future filings, the Postal Service
should provide more detailed, specific
information regarding the specific
elements of section 3642(b), including
the ability of others to participate in that
particular market. Postal Service
requests that do not include this
information may hinder the
Commission’s review of the filing and
delay final disposition.
Cost considerations. The Postal
Service’s financial analysis is intended
to show that International Business
Reply Service Contract 1 covers its
attributable costs, does not result in
subsidization of competitive products
by market dominant products, and
increases contribution from competitive
products. Request at Attachment 3. The
contract is predicated on unit costs
based on the shipper’s particular mail
characteristics.
Based on the data submitted, the
Commission finds that International
Business Reply Service Contract 1
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 the proposed
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International Business Reply Service
Contract 1 indicates that it comports
with the provisions applicable to rates
for competitive products.
Product name. In Order No. 164, the
Commission expressed a preliminary
concern with calling the proposed
product ‘‘International Business Reply
Service Contracts’’ since it could be
confused with the market dominant
product of the same name. The Postal
Service argues its proposed MCS
language for IBRS contracts adequately
distinguishes between products.
However, this does not solve the
potential naming problem whereby the
Postal Service may, at a future date,
wish to enter into IBRS market
dominant contracts.22 To provide for
this possibility, the Commission will
add the proposed product to the
competitive product list as
‘‘International Business Reply Service
Competitive Contract 1’’ to distinguish
it from any future potential market
dominant negotiated service agreement
products which might be called
‘‘International Business Reply Service
Market Dominant Contract 1.’’
Contingency price and cost increase
price change provisions. The proposed
Docket No. CP2009–20 contract contains
two contract terms that require
discussion. The first concerns rate
changes due to changes in cost. The
contract provides that if the Postal
Service’s costs increase above a certain
threshold, it may modify the price
under the contract. Response to Order
No. 164, Attachment 1, at page 3
(emphasis added). Second, the contract
includes a contingency pricing
provision which provides:
Article 16. Contingency Price
In the event that either the Mailer or the
USPS terminates this Agreement under the
terms of Article 13 before the normal
expiration date, or in the event that the
Mailer and the USPS do not enter into a
customized agreement upon the expiration of
this current Agreement, the Mailer shall pay
postage for any Qualifying Mail the USPS
receives after the agreed upon termination
date or expiration date, as appropriate, at a
price of [redacted] for a period of six (6)
months. This price shall have no bearing on
the price the USPS shall charge in the event
that the Mailer and the USPS do enter into
a customized agreement upon the expiration
of this current Agreement. In the event that
the Mailer and the USPS have not entered
22 For example, if the Postal Service were to enter
into its first market dominant IBRS contract
tomorrow, under the Postal Service’s proposed
nomenclature, it would be confusing to call it
‘‘International Business Reply Service Contract 1’’
on the market dominant products list since there
would already be a competitive product on the
competitive products list of the same name (due to
this proceeding).
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into a new customized Agreement within six
(6) months of the termination or expiration
of this current Agreement, the USPS shall
charge the Mailer a price to be determined at
its sole discretion for those items received
after the six (6) month date.
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Id. at page 5 (emphasis added). This
provision allows the Postal Service to
change rates unilaterally in the event
that the parties have not executed a new
agreement within the 6-month period
following the end date of the contract.
Both provisions provide the Postal
Service with the flexibility to change
rates without the need to enter into a
new agreement. That flexibility,
however, does not trump the need for
the Postal Service to comply with the
Commission’s rules. If either provision
is exercised, the Postal Service must file
the changed rates with the Commission
under 39 CFR 3015.5. See also 39 U.S.C.
3632(b)(3). As provided in 39 CFR part
3015, rate changes not of general
applicability are subject to a minimum
15-day notice requirement and, in this
instance, could be filed in Docket No.
CP2009–20. Unless the changed rates
raise new issues, the Commission would
not anticipate a need to act further.
As demonstrated by its subsequent
filings in this case, the Postal Service
has outstanding IBRS contracts that
contain similar cost increase and
contingency provisions. See id. at
Attachments 2–A, 2–B, and 2–C. The
Commission’s conclusion regarding
these provisions in this case are
applicable to other contracts containing
similar provisions.
Other considerations. The Postal
Service shall promptly notify the
Commission of the scheduled
termination date of the agreement. If the
agreement terminates earlier than
anticipated, the Postal Service shall
inform the Commission prior to the new
termination date. The Commission will
then remove the product from the Mail
Classification Schedule at the earliest
possible opportunity.
In conclusion, the Commission
approves International Business Reply
Service Competitive Contract 1 as a new
product. The revision to the
Competitive Product List is shown
below the signature of this order and is
applicable upon issuance of this order.
V. Ordering Paragraphs
It is Ordered:
1. International Business Reply
Service Competitive Contract 1
(MC2009–14 and CP2009–20) is added
to the Competitive Product List as a new
product under Negotiated Service
Agreements, Inbound International.
2. The Postal Service shall notify the
Commission of the scheduled
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termination date of the Docket No.
CP2009–20 contract, and update the
Commission if the termination date
changes for such contract as discussed
in this order.
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.
Issued February 5, 2009.
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
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
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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
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]
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7652
Federal Register / Vol. 74, No. 32 / Thursday, February 19, 2009 / Rules and Regulations
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
Competitive Product List
Express Mail
Express Mail
VerDate Nov<24>2008
14:28 Feb 18, 2009
Jkt 217001
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 Contract 3 (MC2009–15 and
CP2009–21)
Express Mail & Priority Mail Contract 1
(MC2009–6 and CP2009–7)
Express Mail & Priority Mail Contract 2
(MC2009–12 and CP2009–14)
Express Mail & Priority Mail Contract 3
(MC2009–13 and CP2009–17)
Parcel Return Service Contract 1 (MC2009–
1 and CP2009–2)
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 Direct Contracts (MC2009–9,
CP2009–10, and CP2009–11)
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)
Inbound International
Inbound Direct Entry Contracts with
Foreign Postal Administrations
(MC2008–6, CP2008–14 and CP2008–15)
International Business Reply Service
Competitive Contract 1 (MC2009–14 and
CP2009–20)
Competitive Product Descriptions
Express Mail
[Reserved for Group Description]
Express Mail
[Reserved for Product Description]
Outbound International Expedited Services
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
[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. E9–2960 Filed 2–18–09; 8:45 am]
BILLING CODE 7710–FW–P
E:\FR\FM\19FER1.SGM
19FER1
]]>Agencies
[Federal Register Volume 74, Number 32 (Thursday, February 19, 2009)]
[Rules and Regulations]
[Pages 7648-7652]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2960]
=======================================================================
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-14 and CP2009-20; Order No. 178]
New International Mail Contract
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding a new product identified as
International Business Reply Service Contract 1 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 Date: February 19, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 and stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION:
Regulatory History, 74 FR 1263 (January 12, 2009).
The Postal Service seeks to add a new product identified as
International Business Reply Service Contract 1 to the Competitive
Product List. For the reasons discussed below, the Commission approves
the Request.
I. Background
On December 24, 2008, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add
International Business Reply Service Contract 1 to the Competitive
Product List.\1\ The Postal Service asserts that the International
Business Reply Service Contract 1 product is a competitive product
``not of general applicability'' within the meaning of 39 U.S.C.
3632(b)(3). This Request has been assigned Docket No. MC2009-14.
---------------------------------------------------------------------------
\1\ Request of the United States Postal Service to Add
International Business Reply Service Contracts to the Competitive
Products List, and Notice Filing (Under Seal) Contract and Enabling
Governors' Decision, December 24, 2008 (Request). For the reasons
discussed in footnote 1 of Commission Order No. 164, the Commission
preliminarily renamed the proposed product ``International Business
Reply Service Contract 1.''See PRC Order No. 164, Notice and Order
Concerning International Business Reply Service Contract 1
Negotiated Service Agreement, January 5, 2009, at 1, n.1 (Order No.
164). In this Order, the Commission finalizes the product name as
``International Business Reply Service Competitive Contract 1.'' See
infra section IV for a more complete discussion on naming the
proposed new product.
---------------------------------------------------------------------------
The Postal Service contemporaneously filed a contract related to
the proposed new product pursuant to 39 U.S.C. 3632(b)(3) and 39 CFR
3015.5. The contract has been assigned Docket No. CP2009-20.
In support of its Request, the Postal Service initially filed the
following materials: (1) A statement of supporting justification for
this Request as required by 39 CFR 3020.32; \2\ (2) a redacted Decision
of the Governors of the United States Postal Service on the
Establishment of Prices and Classifications for International Business
Reply Service (IBRS) Contracts (Governors' Decision No. 08-24); \3\ (3)
proposed Mail Classification Schedule language; \4\ (4) a redacted copy
of the price floor and price ceiling formulas approved by the
Governors; \5\ (5) a redacted copy of the analysis of the proposed
price floor and price ceilings discussed in Attachment B; \6\ (6) a
[[Page 7649]]
redacted certification as to the formulas for prices offered under
applicable International Business Reply Service contracts; \7\ and (7)
a redacted certification of compliance with 39 U.S.C. 3633(a) for the
IBRS contract at issue in Docket No. CP2009-20.\8\ Unredacted copies of
the Governors' Decision, the IBRS contract, the certification, and
other supporting documentation regarding compliance with 39 CFR 3015.5
were filed separately with the Commission under seal. In its Request,
the Postal Service maintains that the contract and related financial
information, including the customer's name and the accompanying
analyses that provide prices, terms, conditions, and financial
projections, should remain confidential. Request at 2-3.
---------------------------------------------------------------------------
\2\ Attachment 1.
\3\ Attachment 2.
\4\ Attachment 2, Attachment A.
\5\ Attachment 2, Attachment B.
\6\ Attachment 2, Attachment C.
\7\ Attachment 2, Attachment D.
\8\ Attachment 3.
---------------------------------------------------------------------------
In the Statement of Supporting Justification, Jo Ann Miller,
Director, Global Business Development, asserts that the service to be
provided under the contract will cover its attributable costs, make a
positive contribution to coverage of institutional costs, and will
increase contribution toward the requisite 5.5 percent of the Postal
Service's total institutional costs. Id., Attachment 1. Thus, Ms.
Miller contends there will be no issue of subsidization of competitive
products by market dominant products as a result of this contract. Id.
W. Ashley Lyons, Manager, Corporate Financial Planning, Finance
Department, certifies that the contract and the formulas established by
the Governors' Decision comply with 39 U.S.C. 3633(a). See id.,
Attachment 2 at Attachment D and Attachment 3.
II. Procedural History
In Order No. 164, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\9\ The order also sought further information
from the Postal Service with respect to the following areas: (1)
Information relating to the proposed product name in an attempt to
avoid confusion with the domestic product Merchandise Return Service
(MRS) and the market dominant IBRS product; (2) an explanation as to
why a redacted version of the contract proposed in Docket No. CP2009-20
could not be filed; and (3) additional IBRS contracts with contingency
arrangements that are currently in effect. Id. at 3-6.
---------------------------------------------------------------------------
\9\ See generally Order No. 164.
---------------------------------------------------------------------------
On January 12, 2009, the Postal Service filed its response to Order
No. 164.\10\ As part of its response, the Postal Service filed a
redacted version of the Docket No. CP2009-20 contract.\11\ It also
filed the contingency arrangements with this and other IBRS contract
customers both in redacted and unredacted form.\12\ Additionally, the
Postal Service answered the Commission's questions regarding the
classification and naming of the new IBRS Contract 1 product.\13\ The
Postal Service explained that it believes that several factors weigh in
favor of naming this new proposed competitive product International
Business Reply Service Contract 1. First, with respect to the
differences between domestic MRS and the proposed new product, the
Postal Service notes that MRS does not contain a weight restriction
while IBRS is limited to those items that qualify as Letter Post under
the Universal Postal Union's (UPU) definition of the term. Second, it
notes that customers and foreign postal administrations use and
understand the term IBRS in connection with lightweight merchandise
items, as well as letters and cards. Third, the Postal Service believes
that any necessary distinctions have been made clear in its proposed
MCS language for IBRS contracts.\14\ If, however, the Commission
determines that a change of designation is needed to provide further
clarity, the Postal Service recommends that such change be limited to
the listing on the product list.\15\ As an example of a revised product
name that could provide more clarity, the Postal Service used the term
``International Business Reply Service (AO) Contract 1'' to reflect the
fact that the UPU uses the abbreviation AO for autres objects or Letter
Post items other than letters or cards. Id. at 3-4.
---------------------------------------------------------------------------
\10\ Response of the United States Postal Service to Order No.
164, and Notice of Filing Redacted Contract and Other Requested
Materials, January 12, 2009 (Response to Order No. 164).
\11\ Id. at Attachment 1.
\12\ Id. at Attachments 2-A, 2-B, and 2-C.
\13\ With respect to the Commission concern that MRS may be
better classified as a competitive product, the Postal Service
stated that it is currently conducting a review of all special
services, including MRS, to determine if any products should be
transferred to the Competitive Product List.
\14\ Specifically, the proposed MCS language limits the proposed
new product, IBRS Contract 1, to Letter Post items not subject to
the Private Express Statutes. On the other hand, the market dominant
IBRS product only covers items subject to the Private Express
Statutes.
\15\ It asks the Commission not to require an adjustment of
inventory or processes on behalf of the Postal Service, its
customers, or its foreign postal administration partners.
---------------------------------------------------------------------------
On January 16, 2009, a Chairman's Information Request No. 1 and
Notice of Filing of Questions Under Seal was issued.\16\ The Postal
Service filed its response (under seal) to these questions on January
23, 2009.\17\
---------------------------------------------------------------------------
\16\ Chairman's Information Request No. 1 and Notice of Filing
of Questions Under Seal, January 16, 2009 (CIR No. 1).
\17\ Notice of Filing United States Postal Service Responses to
Chairman's Information Request No. 1 (Under Seal), January 23, 2009
(Response to CIR No. 1).
---------------------------------------------------------------------------
III. Comments
Comments were filed by the Public Representative.\18\ No filings
were submitted by other interested parties. The Public Representative
believes the addition of the proposed product to the Competitive
Product List and the approval of the proposed contract is in the
interest of the general public and is consistent with the statutory
requirements of 39 U.S.C. 3632, 3633 and 3642. Public Representative
Comments at 2-3. He further states that the agreement appears
beneficial to the general public. Id. At 4-6. He also believes that,
considering the circumstances of the contract, the Postal Service has
provided sufficient transparency to the public. Id. at 3-4.
---------------------------------------------------------------------------
\18\ Public Representative Comments in Response to Commission
Order No. 164, January 14, 2009 (Public Representative Comments).
---------------------------------------------------------------------------
IV. Commission Analysis
The Commission has reviewed the Request, the Response to Order No.
164, the Response to CIR No. 1, the contract, the financial analysis
provided under seal that accompanies it, and the comments filed by the
Public Representative.
Statutory requirements. The Commission's statutory responsibilities
in this instance entail assigning IBRS Contract 1 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. This includes, for proposed competitive
products, a review of the provisions applicable to rates for
competitive products. 39 U.S.C. 3633.
Product list assignment. The Postal Service asserts that IBRS
Contract 1 should be classified as competitive because the contracts at
issue concern items outside the definition of letters, and ``the PAEA
clearly requires that bulk international mail be classified as
competitive.'' Request at 5.\19\ These arguments do not support the
proposed classification. First, in determining whether to assign IBRS
Contract 1 as a
[[Page 7650]]
product to the Market Dominant Product List or the Competitive Product
List, the Commission must consider, under section 3642, whether
---------------------------------------------------------------------------
\19\ It also cites other factors supporting the ``bulk'' status.
Id.
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. While the inclusion or exclusion of a product from the
postal monopoly may be an important factor for the Commission to weigh
in determining whether a product should be classified as market
dominant or competitive, it is not determinative.
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).
Second, the PAEA does not ``require'' newly proposed ``bulk
international mail'' to be classified as competitive. In title 39,
chapter 36, subchapter II, the Commission created the original
competitive product list, including identifying several bulk
international mail products.\20\ Section 3631 explicitly states that
the competitive product list shall consist of ``[certain products]
subject to subsection (d) \21\ and any changes the Postal Regulatory
Commission may make under section 3642.'' 39 U.S.C. 3631(a) (emphasis
added). Once that initial determination was made in Order No. 43,
products may be added to, transferred between, or deleted from the
product lists in accordance with section 3642.
---------------------------------------------------------------------------
\20\ Docket No. RM2007-1, Order Establishing Ratemaking
Regulations for Market Dominant and Competitive Products, October
29, 2007 (Order No. 43).
\21\ Subsection (d) of 39 U.S.C. 3631 originated in S. 662,
109th Cong. section 203 (2005). It was not present in H.R. 22, the
House version of the bill, and was not present in H.R. 6407, the
final version of the bill that became the PAEA.
---------------------------------------------------------------------------
The Postal Service 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 competitors. Request,
Attachment 1, para. (d). The Postal Service also contends that it may
not decrease quality or output without risking the loss of business to
competitors that offer similar services. Id. It further states that it
has no specific data on the contract partner's views regarding the
regulatory classification of these types of contracts. Id. at para.
(g). Finally, the Postal Service states that the market for these
services is highly competitive and only large shipping companies,
consolidators, and freight forwarders serve this market. Accordingly,
the Postal Service states that it is unaware of any small business
concerns that could offer comparable service for these types of
customers. Id. at para. (h). Additionally, the Postal Service submits
that by offering IBRS contracts, it is giving small businesses an
additional option for shipping articles internationally. Thus, this
results in a net impact on small businesses that is positive. Id.
No commenter opposes the proposed classification of International
Business Reply Service Contract 1 as competitive.
The proper classification of the new IBRS Contract 1 product is not
readily apparent. The Postal Service's supporting justification does
not appear to address the specifics of this particular product.
Nonetheless, in this case, having considered the statutory requirements
and circumstances of this case, the Commission finds that International
Business Reply Service Contract 1 is appropriately classified as a
competitive product and should be added to the Competitive Product
List. In future filings, the Postal Service should provide more
detailed, specific information regarding the specific elements of
section 3642(b), including the ability of others to participate in that
particular market. Postal Service requests that do not include this
information may hinder the Commission's review of the filing and delay
final disposition.
Cost considerations. The Postal Service's financial analysis is
intended to show that International Business Reply Service Contract 1
covers its attributable costs, does not result in subsidization of
competitive products by market dominant products, and increases
contribution from competitive products. Request at Attachment 3. The
contract is predicated on unit costs based on the shipper's particular
mail characteristics.
Based on the data submitted, the Commission finds that
International Business Reply Service Contract 1 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 the proposed International Business Reply
Service Contract 1 indicates that it comports with the provisions
applicable to rates for competitive products.
Product name. In Order No. 164, the Commission expressed a
preliminary concern with calling the proposed product ``International
Business Reply Service Contracts'' since it could be confused with the
market dominant product of the same name. The Postal Service argues its
proposed MCS language for IBRS contracts adequately distinguishes
between products. However, this does not solve the potential naming
problem whereby the Postal Service may, at a future date, wish to enter
into IBRS market dominant contracts.\22\ To provide for this
possibility, the Commission will add the proposed product to the
competitive product list as ``International Business Reply Service
Competitive Contract 1'' to distinguish it from any future potential
market dominant negotiated service agreement products which might be
called ``International Business Reply Service Market Dominant Contract
1.''
---------------------------------------------------------------------------
\22\ For example, if the Postal Service were to enter into its
first market dominant IBRS contract tomorrow, under the Postal
Service's proposed nomenclature, it would be confusing to call it
``International Business Reply Service Contract 1'' on the market
dominant products list since there would already be a competitive
product on the competitive products list of the same name (due to
this proceeding).
---------------------------------------------------------------------------
Contingency price and cost increase price change provisions. The
proposed Docket No. CP2009-20 contract contains two contract terms that
require discussion. The first concerns rate changes due to changes in
cost. The contract provides that if the Postal Service's costs increase
above a certain threshold, it may modify the price under the contract.
Response to Order No. 164, Attachment 1, at page 3 (emphasis added).
Second, the contract includes a contingency pricing provision which
provides:
Article 16. Contingency Price
In the event that either the Mailer or the USPS terminates this
Agreement under the terms of Article 13 before the normal expiration
date, or in the event that the Mailer and the USPS do not enter into
a customized agreement upon the expiration of this current
Agreement, the Mailer shall pay postage for any Qualifying Mail the
USPS receives after the agreed upon termination date or expiration
date, as appropriate, at a price of [redacted] for a period of six
(6) months. This price shall have no bearing on the price the USPS
shall charge in the event that the Mailer and the USPS do enter into
a customized agreement upon the expiration of this current
Agreement. In the event that the Mailer and the USPS have not
entered
[[Page 7651]]
into a new customized Agreement within six (6) months of the
termination or expiration of this current Agreement, the USPS shall
charge the Mailer a price to be determined at its sole discretion
for those items received after the six (6) month date.
Id. at page 5 (emphasis added). This provision allows the Postal
Service to change rates unilaterally in the event that the parties have
not executed a new agreement within the 6-month period following the
end date of the contract.
Both provisions provide the Postal Service with the flexibility to
change rates without the need to enter into a new agreement. That
flexibility, however, does not trump the need for the Postal Service to
comply with the Commission's rules. If either provision is exercised,
the Postal Service must file the changed rates with the Commission
under 39 CFR 3015.5. See also 39 U.S.C. 3632(b)(3). As provided in 39
CFR part 3015, rate changes not of general applicability are subject to
a minimum 15-day notice requirement and, in this instance, could be
filed in Docket No. CP2009-20. Unless the changed rates raise new
issues, the Commission would not anticipate a need to act further.
As demonstrated by its subsequent filings in this case, the Postal
Service has outstanding IBRS contracts that contain similar cost
increase and contingency provisions. See id. at Attachments 2-A, 2-B,
and 2-C. The Commission's conclusion regarding these provisions in this
case are applicable to other contracts containing similar provisions.
Other considerations. The Postal Service shall promptly notify the
Commission of the scheduled termination date of the agreement. If the
agreement terminates earlier than anticipated, the Postal Service shall
inform the Commission prior to the new termination date. The Commission
will then remove the product from the Mail Classification Schedule at
the earliest possible opportunity.
In conclusion, the Commission approves International Business Reply
Service Competitive Contract 1 as a new product. The revision to the
Competitive Product List is shown below the signature of this order and
is applicable upon issuance of this order.
V. Ordering Paragraphs
It is Ordered:
1. International Business Reply Service Competitive Contract 1
(MC2009-14 and CP2009-20) is added to the Competitive Product List as a
new product under Negotiated Service Agreements, Inbound International.
2. The Postal Service shall notify the Commission of the scheduled
termination date of the Docket No. CP2009-20 contract, and update the
Commission if the termination date changes for such contract as
discussed in this order.
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.
Issued February 5, 2009.
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
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]
[[Page 7652]]
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
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 Contract 3 (MC2009-15 and CP2009-21)
Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009-
14)
Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009-
17)
Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
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 Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
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)
Inbound International
Inbound Direct Entry Contracts with Foreign Postal
Administrations (MC2008-6, CP2008-14 and CP2008-15)
International Business Reply Service Competitive Contract 1
(MC2009-14 and CP2009-20)
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. E9-2960 Filed 2-18-09; 8:45 am]
BILLING CODE 7710-FW-P
