Change in Rates of General Applicability for Competitive Products, 8434-8464 [E9-3483]

Agencies

• Postal Service

[Federal Register Volume 74, Number 35 (Tuesday, February 24, 2009)]
[Notices]
[Pages 8434-8464]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-3483]



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Part IV





Postal Service





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Change in Rates of General Applicability for Competitive Products; 
Notice

Federal Register / Vol. 74, No. 35 / Tuesday, February 24, 2009 / 
Notices

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POSTAL SERVICE


Change in Rates of General Applicability for Competitive Products

    Editorial Note: Notice document E9-3483 was inadvertently 
removed from the issue of Monday, February 23, 2009. It appears in 
this issue in its entirety.

AGENCY: Postal Service.\TM\

ACTION: Notice of a change in rates of general applicability for 
competitive products.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth changes in rates of general 
applicability for competitive products.

DATES: Effective Date: May 11, 2009.

FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, 202-268-2989.

SUPPLEMENTARY INFORMATION: On February 3, 2009, pursuant to their 
authority under 39 U.S.C. 3632, the Governors of the Postal Service 
established prices and classification changes for competitive products. 
The Governors' Decision and the record of proceedings in connection 
with this Decision are reprinted below in accordance with 39 U.S.C. 
3632(b)(2).

Neva R. Watson,
Attorney, Legislative.

Decision of the Governors of the United States Postal Service on 
Changes in Rates and Classes of General Applicability for Certain 
Competitive Products (Governors' Decision No. 09-01)

February 3, 2009

Statement of Explanation and Justification

    Pursuant to our authority under section 3632 of title 39, as 
amended by the Postal Accountability and Enhancement Act of 2006 
(``PAEA''), we establish new prices of general applicability for the 
following competitive products, and such changes in classifications as 
are necessary to define the new prices: Parcel Select, Premium 
Forwarding Service, International Priority Airmail, International 
Surface Air Lift, and International Ancillary Services. Management's 
analysis of these changes is provided in Attachment A and the prices 
and classification are shown in full in Attachment B. We have reviewed 
management's analysis and have evaluated the new prices and 
classification changes in accordance with 39 U.S.C. 3632-3633 and 39 
CFR 3015.2. We approve the changes set forth in Attachment B, finding 
that they are appropriate, and are consistent with the regulatory 
criteria.
    In Parcel Select, there are three categories (Origin BMC Presort, 
BMC Presort, and Barcoded Inter-BMC and Intra-BMC) that were not 
included in the January 2009 competitive products' price increase. 
These categories' prices are calculated based on (market-dominant) 
Single-Piece Parcel Post prices. Accordingly, these categories' prices 
are being increased concurrently with the market-dominant price change 
effective on May 11, 2009, in order to maintain their relationship with 
the Single-Piece Parcel Post prices on which they are based. As a 
result, prices for the overall Parcel Select product will increase by 
an additional one-half of one percent. Minor structural changes are 
also made within the two Presort price categories to better reflect the 
discount for barcoding. The nonpresort categories (Barcoded Inter-BMC 
and Intra-BMC) are now merged into one category, Barcoded Nonpresort.
    Premium Forwarding Service prices were not changed as part of the 
competitive products' price increase in January 2009. Premium 
Forwarding Service prices will increase by 20.2 percent overall on May 
11, 2009.
    International Priority Airmail (IPA) and International Surface Air 
Lift (ISAL) prices were not changed as part of the January 2009 
adjustment. Their prices are calculated based on First-Class Mail 
International prices, which are being increased as part of the market-
dominant price change effective May 11, 2009. There are also several 
structural changes: new country specific price groups are added; 
pricing will be differentiated by presort level (Direct Country, Mixed 
Country, and Worldwide Non-presort); and Worldwide Non-presort, 
previously applicable only to IPA, will now also be applicable to ISAL. 
In addition, mixed country sacks would only be applicable to 
dropshipped items, and the minimum volume per mailing for IPA is raised 
to 50 pounds. Noncontractual IPA will have a price increase of 20.8 
percent and noncontractual ISAL will increase by 2.4 percent.
    Prices for competitive International Ancillary Services are also 
increasing to coincide with identical increases in the prices of 
market-dominant International Ancillary Services. Prices for the 
competitive International Ancillary Services will increase, on average, 
by 6.1 percent.
    As described in Attachment A, these changes satisfy the statutory 
requirements. They should not result in the subsidization of 
competitive products by market dominant products (39 U.S.C. 
3633(a)(1)). Each competitive product should cover its attributable 
costs (39 U.S.C. 3633(a)(2)). They should allow competitive products as 
a whole to comply with 39 U.S.C. 3633(a)(3), which, as implemented by 
39 CFR 3015.7(c), requires competitive products to contribute a minimum 
of 5.5 percent to the Postal Service's total institutional costs.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on May 11, 2009. We direct the Secretary to 
have this decision published in the Federal Register in accordance with 
39 U.S.C. 3632(b)(2). We also direct management to file with the Postal 
Regulatory Commission appropriate notice of these changes.

By The Governors:

------/s/------,

Alan C. Kessler.

Chairman.

Certification of Governors' Vote In Governors' Decision No. 09-01

    I Hereby Certify that the Governors voted on adopting Governors' 
Decision No. 09-01, and that, consistent with 39 U.S.C. 3632(a), a 
majority of the governors then holding office concurred in the 
Decision.

Date: February 3, 2009.
------/s/------,

Julie S. Moore.


Secretary of the Board of Governors.

Analysis of Price and Classification Changes

    The prices for the following Shipping Services (competitive) 
products will change on May 11, 2009, as explained below.

I. Parcel Select

    There are three categories within Parcel Select (Origin BMC 
Presort, BMC Presort, and Barcoded Inter-BMC and Intra-BMC) that were 
not included in the January 2009 price increase for Shipping Services. 
Although these categories are part of Shipping Services, their prices 
are being increased in May because they are calculated based on Single-
Piece Parcel Post prices, which are part of Mailing Services. The 
increase in prices for these categories will increase prices for the 
overall Parcel Select product by an additional one-half of one percent. 
Also, the price charts within the presorted categories have been re-
aligned slightly to better reflect the inclusion of the 3-cent discount 
for barcoding, and the inter-BMC and intra-BMC prices are merged into 
one category for barcoded nonpresort parcels.

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II. Premium Forwarding Service

    Premium Forwarding Service provides residential delivery with a 
forwarding service for their mail when they are away from their primary 
residences. Most mail from a customer's permanent address is forwarded 
once a week via Priority Mail to the customer's temporary address. The 
customer is charged an enrollment fee and a weekly fee. Overall, 
Premium Forwarding Service prices will increase by 20.2 percent. These 
prices were not changed as part of the Shipping Services price increase 
in January 2009. This is the first price increase for the service since 
inception in 2005. Premium Forwarding Service had been part of Mailing 
Services, but, subsequent to last year's price change, was moved, at 
the Postal Service's request, to Shipping Services. The Premium 
Forwarding Service enrollment price will increase from $10.00 to $15.00 
and the weekly reshipment price will increase from $11.95 to $13.95.

III. IPA/ISAL

    IPA and ISAL are bulk international letter products which are 
closely related to the single-piece First-Class Mail International 
(FCMI) letter prices that will change in May 2009. While most IPA and 
ISAL content is entered under customized contractual arrangements with 
customers, some IPA and ISAL is tendered by customers that do not 
maintain contracts. These noncontractual prices were not changed as 
part of the January 2009 adjustment, but are being changed now to align 
them with FCMI price change in May. There are also several structural 
changes: new country specific price groups are added; pricing will be 
differentiated by presort level (Direct Country, Mixed Country, and 
Worldwide Non-presort); and Worldwide Non-presort, previously 
applicable only to IPA, will now also be applicable to ISAL. In 
addition, mixed country sacks would only be applicable to dropshipped 
items, and the minimum volume per mailing for IPA is raised to 50 
pounds. Once implemented, the noncontractual prices will result in 
increases in the rates charged to customers that have executed 
customized agreements.
    International Priority Airmail (IPA) is a bulk international 
airmail service for mailing First-Class Mail International items. 
Noncontractual International Priority Airmail (IPA) will have a price 
increase of 20.8 percent. This increase is driven by new cost 
information for noncontractual volumes.
    International Surface Air Lift (ISAL) is an international bulk 
mailing service for mailing First-Class Mail International items. ISAL 
shipments are flown to the foreign destinations and entered into that 
country's surface or nonpriority mail system for delivery. 
Noncontractual International Surface Airlift will have a price increase 
of 2.4 percent.

IV. International Ancillary Services

    Certain International Ancillary Services that are combined with 
other competitive products are also within the scope of this 
competitive price change. Customers may purchase an International 
Certificate of Mailing for evidence of mailing. Customers who purchase 
International Registered Mail for additional security and limited 
indemnity protection may also buy International Return Receipt, which 
provides the sender with evidence of delivery, and International 
Restricted Delivery, which limits delivery to an indentified recipient. 
On average, prices for International Certificate of Mailing increase 
6.7 percent, for International Registered Mail 6.5 percent, for 
International Restricted Delivery 4.7 percent, and for International 
Return Receipt 4.5 percent.

V. Summary

    As shown in the nonpublic annex, the price changes should enable 
each competitive product to cover its attributable costs (39 U.S.C. 
3633(a)(2)) and should result in competitive products as a whole 
complying with 39 U.S.C. 3633(a)(3), which, as implemented by 39 CFR 
3015.7(c), requires competitive products to contribute a minimum of 5.5 
percent to the Postal Service's institutional costs. Accordingly, no 
issue of subsidization of competitive products by market dominant 
products should arise (39 U.S.C. 3633(a)(1)).

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2125 Premium Forwarding Service

* * * * *

2125.2 Prices

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Enrollment.....................................................    15.00
Weekly Reshipment..............................................    13.95
------------------------------------------------------------------------

* * * * *
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2225.6 Prices

International Priority Airmail
    The price is determined by adding the applicable per-piece price to 
the applicable per-pound price. The per-piece price applies to each 
mailpiece regardless of weight. The per-pound price applies to the net 
weight (gross weight of the sack minus the tare weight of the sack) of 
the mail for the specific rate group.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Direct country sacks                             Mixed country sacks
                                                         -----------------------------------------------------------------------------------------------
                       Price group                                                           ISC drop                                        ISC drop
                                                            Per  piece     Full service    shipment per     Per  piece     Full  service   shipment  per
                                                                              per lb.           lb.                           per lb.           lb.
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................           $0.43           $7.12           $4.62  ..............  ..............  ..............
2.......................................................            0.15            6.69            4.19  ..............  ..............  ..............
3.......................................................            0.42            9.07            6.57  ..............  ..............  ..............
4.......................................................            0.45            9.52            7.02  ..............  ..............  ..............
5.......................................................            0.43            9.26            6.76  ..............  ..............  ..............
6.......................................................            0.44            9.26            6.76  ..............  ..............  ..............
7.......................................................            0.42            9.00            6.50  ..............  ..............  ..............
8.......................................................            0.41            9.00            6.50  ..............  ..............  ..............
9.......................................................            0.33            9.97            7.47  ..............  ..............  ..............
10......................................................            0.41            9.20            6.70  ..............  ..............  ..............
11......................................................            0.40            9.00            6.50            0.42  ..............            6.83
12......................................................            0.15            8.00            5.50            0.16  ..............            5.78
13......................................................            0.16            7.35            4.85            0.17  ..............            5.10
14......................................................            0.15            9.00            6.50            0.16  ..............            6.83
15......................................................            0.12            9.50            7.00            0.13  ..............            7.35
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                          Worldwide Nonpresorted Sacks
----------------------------------------------------------------------------------------------------------------
                                                                            Full  service per  ISC drop shipment
                      Price group                            Per piece             lb.              per lb.
----------------------------------------------------------------------------------------------------------------
n/a....................................................             $0.47             $10.98              $8.09
----------------------------------------------------------------------------------------------------------------


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                                                                       Direct country sacks                             Mixed country sacks
                                                         -----------------------------------------------------------------------------------------------
                       Price group                                                           ISC drop                                        ISC drop
                                                             Per piece     Full service    shipment per      Per piece     Full service    shipment per
                                                                              per lb.           lb.                           per lb.           lb.
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.......................................................           $0.43           $3.85           $2.85  ..............  ..............  ..............
2.......................................................            0.12            4.86            3.86  ..............  ..............  ..............
3.......................................................            0.43            4.49            3.49  ..............  ..............  ..............
4.......................................................            0.43            4.59            3.59  ..............  ..............  ..............
5.......................................................            0.43            4.56            3.56  ..............  ..............  ..............
6.......................................................            0.43            4.45            3.45  ..............  ..............  ..............
7.......................................................            0.44            4.66            3.66  ..............  ..............  ..............
8.......................................................            0.43            4.45            3.45  ..............  ..............  ..............
9.......................................................            0.31            4.76            3.76  ..............  ..............  ..............
10......................................................            0.46            4.67            3.67  ..............  ..............  ..............
11......................................................            0.43            4.49            3.49            0.46  ..............            3.67
12......................................................            0.15            5.45            4.45            0.16  ..............            4.68
13......................................................            0.15            5.55            4.55            0.16  ..............            4.78
14......................................................            0.15            5.45            4.45            0.16  ..............            4.68
15......................................................            0.12            6.60            5.60            0.13  ..............            5.88
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                          Worldwide Nonpresorted Sacks
----------------------------------------------------------------------------------------------------------------
                                                                             Full service per  ISC drop shipment
                      Price group                            Per piece             lb.              per lb.
----------------------------------------------------------------------------------------------------------------
n/a....................................................             $0.51              $7.63               6.47
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2250 International Ancillary Services

2250.1 International Certificate of Mailing

* * * * *

2250.1.2 Prices

Individual Pieces Prices

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Original certificate of mailing for listed pieces of ordinary       1.15
 Priority Mail International parcels...........................
Three or more pieces individually listed in a firm mailing book     0.42
 or an approved customer provided manifest (per piece).........
Each additional copy of original certificate of mailing or firm     1.15
 mailing bills (each copy).....................................
------------------------------------------------------------------------

Multiple Pieces Prices
    Identical pieces of ordinary Single-Piece First-Class Mail 
International paid with regular stamps, precanceled stamps, or meter 
stamps are subject to the following fees:

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Up to 1,000 pieces (one certificate for total number)..........     6.50
Each additional 1,000 pieces or fraction.......................     0.75
Duplicate copy.................................................     1.15
------------------------------------------------------------------------

2250.2 International Registered Mail

* * * * *

2250.2.2 Prices

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Per Piece......................................................    11.50
------------------------------------------------------------------------

2250.3 International Return Receipt

* * * * *

2250.3.2 Prices

Outbound International Return Receipt

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Per Piece......................................................     2.30
------------------------------------------------------------------------

Inbound International Return Receipt
    No additional payment.

2250.4 International Restricted Delivery

* * * * *

2250.4.2 Prices

------------------------------------------------------------------------
                                                                   ($)
------------------------------------------------------------------------
Per Piece......................................................     4.50
------------------------------------------------------------------------

2250.5 International Insurance

* * * * *

2250.5.3 Prices

Outbound International Insurance
    a. Priority Mail International Insurance

------------------------------------------------------------------------
  Indemnity limit not over ($)     Canada ($)    All other countries ($)
------------------------------------------------------------------------
50.............................            1.75  2.50
100............................            2.25  3.40
200............................            2.75  4.40
300............................            4.70  5.40
400............................            5.70  6.40
500............................            6.70  7.40
600............................            7.70  8.40
675............................            8.70
700............................             N/A  9.40
Over 700.......................             N/A  9.40 plus 1.00 for each
                                                  100.00 or fraction
                                                  thereof over 700.00.
                                                  Maximum indemnity
                                                  varies by country.
------------------------------------------------------------------------

    b. Express Mail International Merchandise Insurance

------------------------------------------------------------------------
                    Amount of coverage: ($)                        ($)
------------------------------------------------------------------------
0.01 to 100.00.................................................     0.00
100.01 to 200.00...............................................     0.75
200.01 to 500.00...............................................     2.15
500.01 to 1,000.00.............................................     3.55
1,000.01 to 1,500.00...........................................     4.95
1,500.01 to 2,000.00...........................................     6.35
2,000.01 to 2,500.00...........................................     7.75
2,500.01 to 3,000.00...........................................     9.15
3,000.01 to 3,500.00...........................................    10.55
3,500.01 to 4,000.00...........................................    11.95
4,000.01 to 4,500.00...........................................    13.35
4,500.01 to 5,000.00...........................................    14.75
------------------------------------------------------------------------

Part D--Country Price Lists For International Mail

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    Editorial Note: Notice document E9-3483 was inadvertently 
removed from the issue of Monday, February 23, 2009. It appears in 
this issue in its entirety.
[FR Doc. E9-3483 Filed 2-20-09; 8:45 am]
BILLING CODE 7710-12-P