New Postal Product, 45327-45330 [E9-21208]
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Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations
participation in the program, their
approved threshold level, and their
revised threshold level (when
applicable). Mailers wishing to dispute
their threshold level will be provided
with instructions on the process.
3.5 Program Participation
Mail owners may participate in the
program with qualifying volume as
follows:
a. Commercial First-Class Mail cards,
letters and/or flats volume mailed by the
participant through the participant’s
own permit imprint advance account,
precanceled stamp permit(s), or postage
meter permit(s);
b. Commercial First-Class Mail cards,
letters and/or flats volume prepared by
a mail service provider, when entered
through a permit owned by the
participant;
c. Commercial First-Class Mail cards,
letters and/or flats pieces mailed
through a mail service provider’s
permit, only when the pieces can be
identified as being prepared for the
participant and when the applicant’s
prior mailing activity through the mail
service provider’s permit can be
validated.
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3.6 Incentive Program Credits
Approved participants demonstrating
an increase in commercial First-Class
Mail cards, letters and flats volume
above their approved threshold level
qualify for a credit to their designated
permit imprint advance deposit
account, Centralized Account Payment
System (CAPS) account, or provided
through another approved method as
follows:
a. The total postage paid for
commercial First-Class Mail cards,
letters and flats recorded during the
program will be identified for each
participant.
b. The total postage paid during the
program period will be divided by the
total number of recorded pieces to
generate the average price per piece for
the program period.
c. Participants will receive a credit in
the amount of 20 percent of the average
price per piece applied to the total
number of mailpieces, for the
incremental volume above their
approved threshold level, recorded
during the program period.
3.7 Mailing Activity Review
Mailing activity by participants will
be reviewed in the calendar months
preceding and following the end of the
program. The qualifying volume
recorded for participants may be
adjusted in accordance with the
following:
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a. The participant’s previously
determined volume trend will be
applied to the volume of commercial
First-Class Mail cards, letters and flats
mailed by the participant within the
months of September 2008 and January
2009, to determine the program
participant’s September 2009 and
January 2010 expected volumes.
b. The participant’s actual September
2009 and January 2010 volumes will
then be compared to their September
2009 and January 2010 expected
volumes.
c. Participants failing to meet their
September 2009 and/or January 2010
expected volume will have any shortfall
in volume deducted from the number of
mailpieces eligible for an incentive
credit within the program.
d. Participants demonstrating a
shortfall in volume to either their
September 2009 or January 2010
expected volumes will have that
shortfall deducted from the number of
mailpieces eligible for an incentive
credit within the program regardless of
any surplus demonstrated in the
expected volume threshold of the other
month.
*
*
*
*
*
Neva R. Watson,
Attorney, Legislative.
[FR Doc. E9–21072 Filed 9–1–09; 8:45 am]
BILLING CODE 7710–12–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009–37 and CP2009–56;
Order No. 278]
New Postal Product
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Commission is adding
the Priority Mail Contract 17 to the
Competitive Product List. This action is
consistent with changes in a recent law
governing postal operations.
Republication of the lists of market
dominant and competitive products is
also consistent with new requirements
in the law.
DATES: Effective September 2, 2009 and
is applicable beginning August 14, 2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
at 202–789–6820 or
stephen.sharfman@prc.gov.
Regulatory
History, 74 FR 39123 (August 5, 2009).
SUPPLEMENTARY INFORMATION:
I. Introduction
II. Background
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45327
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
I. Introduction
The Postal Service seeks to add a new
product identified as Priority Mail
Contract 17 to the Competitive Product
List. For the reasons discussed below,
the Commission approves the Request.
II. Background
On July 24, 2009, the Postal Service
filed a formal request pursuant to 39
U.S.C. 3642 and 39 CFR 3020.30 et seq.
to add Priority Mail Contract 17 to the
Competitive Product List.1 The Postal
Service asserts that the Priority Mail
Contract 17 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. MC2009–37.
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. CP2009–56.
In support of its Request, the Postal
Service filed the following materials: (1)
A redacted version of the contract
which, among other things, provides
that the contract will expire 3 years
from the effective date, which is
proposed to be the day that the
Commission issues all regulatory
approvals; 2 (2) requested changes in the
Mail Classification Schedule product
list; 3 (3) a Statement of Supporting
Justification as required by 39 CFR
3020.32; 4 and (4) certification of
compliance with 39 U.S.C. 3633(a).5
The Postal Service also references
Governors’ Decision 09–6, filed in
Docket No. MC2009–25, as
authorization of the new product.
Notice at 1.
In the Statement of Supporting
Justification, Mary Prince Anderson,
Acting Manager, Sales and
Communications, Expedited Shipping,
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.
Request, Attachment C, at 1. W. Ashley
1 Request of the United States Postal Service to
Add Priority Mail Contract 17 to Competitive
Product List and Notice of Filing (Under Seal) of
Contract and Supporting Data, July 24, 2009
(Request).
2 Attachment A to the Request.
3 Attachment B to the Request.
4 Attachment C to the Request.
5 Attachment D to the Request.
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Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations
Lyons, Manager, Regulatory Reporting
and Cost Analysis, Finance Department,
certifies that the contract complies with
39 U.S.C. 3633(a). See id., Attachment
D.
The Postal Service filed much of the
supporting materials, including the
supporting data and the unredacted
contract, 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, certain terms and
conditions, and financial projections,
should remain confidential. Id. at 2–3.
In Order No. 261, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.6
III. Comments
Comments were filed by the Public
Representative.7 No comments were
submitted by other interested parties.
The Public Representative states that the
Postal Service’s filing comports with
title 39 and the relevant Commission
Rules of Practice and Procedure. Id. at
1, 3–4. He further states that the
agreement appears to be beneficial to
the general public, although he does
question the utility of the contract’s 30day termination provision. Id. at 1, 4,
5–6.
With respect to confidentiality, the
Public Representative believes that ‘‘[t]o
comply with Order No. 247 in Docket[s]
MC2009–30 and CP2009–40, the Postal
Service should include with its filing a
redacted copy of the Governors’
Decision and certification.’’ Id. at 3
(footnote omitted).
IV. Commission Analysis
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The Commission has reviewed the
Request, 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 Priority
Mail Contract 17 to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
6 PRC Order No. 261, Notice and Order
Concerning Priority Mail Contract 17 Negotiated
Service Agreement, July 29, 2009 (Order No. 261).
7 Public Representative Comments in Response to
United States Postal Service Request to Add Priority
Mail Contract 17 to Competitive Product List,
August 7, 2009 (Public Representative Comments).
The Public Representative also filed a Motion of the
Public Representative for Late Acceptance of
Comments in Response to United States Postal
Service Request to Add Priority Mail Contract 17 to
Competitive Product List (Motion). That Motion is
granted.
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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. In
determining whether to assign Priority
Mail Contract 17 as a product to the
Market Dominant Product List or the
Competitive Product List, the
Commission must consider whether
the Postal Service exercises sufficient market
power that it can effectively set the price of
such product substantially above costs, raise
prices significantly, decrease quality, or
decrease output, without risk of losing a
significant level of business to other firms
offering similar products.
39 U.S.C. 3642(b)(1). If so, the product
will be categorized as market dominant.
The competitive category of products
shall consist of all other products.
The Commission is further required to
consider the availability and nature of
enterprises in the private sector engaged
in the delivery of the product, the views
of those who use the product, and the
likely impact on small business
concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its
bargaining position is constrained by
the existence of other shippers who can
provide similar services, thus
precluding it from taking unilateral
action to increase prices without the
risk of losing volume to private
companies. Request, Attachment C,
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 expedited delivery services. Id.
It further states that the contract partner
supports the addition of the contract to
the Competitive Product List to
effectuate the negotiated contractual
terms. Id. at ¶ (g). Finally, the Postal
Service states that the market for
expedited delivery services is highly
competitive and requires a substantial
infrastructure to support a national
network. It indicates that large carriers
serve this market. Accordingly, the
Postal Service states that it is unaware
of any small business concerns that
could offer comparable service for this
customer. Id. at para. (h).
No commenter opposes the proposed
classification of Priority Mail Contract
17 as competitive. Having considered
the statutory requirements and the
support offered by the Postal Service,
the Commission finds that Priority Mail
Contract 17 is appropriately classified as
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a competitive product and should be
added to the Competitive Product List.
Cost considerations. The Postal
Service presents a financial analysis
showing that Priority Mail Contract 17
results in cost savings while ensuring
that the contract covers its attributable
costs, does not result in subsidization of
competitive products by market
dominant products, and increases
contribution from competitive products.
Based on the data submitted, the
Commission finds that Priority Mail
Contract 17 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 proposed Priority Mail
Contract 17 indicates that it comports
with the provisions applicable to rates
for competitive products.
Other considerations. The Postal
Service shall promptly notify the
Commission of the scheduled
termination date of the agreement. The
Commission will then remove the
product from the Competitive Product
List.
Furthermore, the Public
Representative’s assessment of Order
No. 247 is well-taken. Public
Representative Comments at 3–4.
Subsequently, the Commission issued
Order No. 266, which clarified the
policy regarding self-contained docket
filings. See Docket No. CP2009–47,
Order Concerning Filing a Functionally
Equivalent Global Plus 1 Contract
Negotiated Service Agreement, July 31,
2009, at 6–7 (Order No. 266). In recent
filings, the Postal Service has adhered to
this policy.
In conclusion, the Commission
approves Priority Mail Contract 17 as a
new product. The revision to the
Competitive Product List is shown
below the signature of this Order and is
effective upon issuance of this Order.
V. Ordering Paragraphs
It is ordered:
1. Priority Mail Contract 17 (MC2009–
37 and CP2009–56) is added to the
Competitive Product List as a new
product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the
Commission of the scheduled
termination date and update the
Commission if termination occurs prior
to that date, as discussed in this order.
3. The Motion of the Public
Representative for Late Acceptance of
Comments in Response to United States
Postal Service Request to Add Priority
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Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations
Mail Contract 17 to Competitive Product
List filed on August 7, 2009, is granted.
4. The Secretary shall arrange for the
publication of this order in the Federal
Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and
procedure; Postal Service.
By the Commission.
Issued: August 14, 2009.
Judith M. Grady,
Acting 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 Schedule
to read as follows:
■
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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
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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]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
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45329
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card
Authentication
[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc.
Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated
Service Agreement
The Bradford Group Negotiated Service
Agreement
Part B—Competitive Products
2000 Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1
(CP2008–7)
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Federal Register / Vol. 74, No. 169 / Wednesday, September 2, 2009 / Rules and Regulations
Inbound International Expedited Services 2
(MC2009–10 and CP2009–12)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Royal Mail Group Inbound Air Parcel Post
Agreement
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 Contract 4 (MC2009–34 and
CP2009–45)
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)
Express Mail & Priority Mail Contract 4
(MC2009–17 and CP2009–24)
Express Mail & Priority Mail Contract 5
(MC2009–18 and CP2009–25)
Express Mail & Priority Mail Contract 6
(MC2009–31 and CP2009–42)
Express Mail & Priority Mail Contract 7
(MC2009–32 and CP2009–43)
Express Mail & Priority Mail Contract 8
(MC2009–33 and CP2009–44)
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)
Priority Mail Contract 5 (MC2009–21 and
CP2009–26)
Priority Mail Contract 6 (MC2009–25 and
CP2009–30)
Priority Mail Contract 7 (MC2009–25 and
CP2009–31)
Priority Mail Contract 8 (MC2009–25 and
CP2009–32)
Priority Mail Contract 9 (MC2009–25 and
CP2009–33)
Priority Mail Contract 10 (MC2009–25 and
CP2009–34)
Priority Mail Contract 11 (MC2009–27 and
CP2009–37)
Priority Mail Contract 12 (MC2009–28 and
CP2009–38)
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Priority Mail Contract 13 (MC2009–29 and
CP2009–39)
Priority Mail Contract 14 (MC2009–30 and
CP2009–40)
Priority Mail Contract 15 (MC2009–35 and
CP2009–54)
Priority Mail Contract 17 (MC2009–37 and
CP2009–56)
Outbound International
Direct Entry Parcels Contracts
Direct Entry Parcels 1 (MC2009–26 and
CP2009–36)
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 (CP2008–8, CP2008–46 and
CP2009–47)
Global Plus 2 (MC2008–7, CP2008–48 and
CP2008–49)
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]
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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. E9–21208 Filed 9–1–09; 8:45 am]
BILLING CODE 7710–FW–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 180
[EPA–HQ–OPP–2009–0012; FRL–8433–8]
Methoxyfenozide; Pesticide Tolerances
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Final rule.
SUMMARY: This regulation establishes
tolerances for residues of
methoxyfenozide in or on citrus oil and
fruit, citrus, group 10 with regional
registrations; and corn, pop, grain; corn,
pop, stover; pea, dry seed; and
pomegranate. The Interregional
Research Project No. 4 (IR–4) requested
these tolerances under the Federal Food,
Drug, and Cosmetic Act (FFDCA).
DATES: This regulation is effective
September 2, 2009. Objections and
requests for hearings must be received
on or before November 2, 2009, and
must be filed in accordance with the
instructions provided in 40 CFR part
178 (see also Unit I.C. of the
SUPPLEMENTARY INFORMATION).
ADDRESSES: EPA has established a
docket for this action under docket
identification (ID) number EPA–HQ–
OPP–2009–0012. All documents in the
docket are listed in the docket index
available at https://www.regulations.gov.
Although listed in the index, some
information is not publicly available,
e.g., Confidential Business Information
(CBI) or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available in the electronic docket at
https://www.regulations.gov, or, if only
available in hard copy, at the OPP
Regulatory Public Docket in Rm. S–
4400, One Potomac Yard (South Bldg.),
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]]>Agencies
[Federal Register Volume 74, Number 169 (Wednesday, September 2, 2009)]
[Rules and Regulations]
[Pages 45327-45330]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21208]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2009-37 and CP2009-56; Order No. 278]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commission is adding the Priority Mail Contract 17 to the
Competitive Product List. This action is consistent with changes in a
recent law governing postal operations. Republication of the lists of
market dominant and competitive products is also consistent with new
requirements in the law.
DATES: Effective September 2, 2009 and is applicable beginning August
14, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
at 202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 39123 (August 5,
2009).
I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
I. Introduction
The Postal Service seeks to add a new product identified as
Priority Mail Contract 17 to the Competitive Product List. For the
reasons discussed below, the Commission approves the Request.
II. Background
On July 24, 2009, the Postal Service filed a formal request
pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Priority
Mail Contract 17 to the Competitive Product List.\1\ The Postal Service
asserts that the Priority Mail Contract 17 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. MC2009-37.
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\1\ Request of the United States Postal Service to Add Priority
Mail Contract 17 to Competitive Product List and Notice of Filing
(Under Seal) of Contract and Supporting Data, July 24, 2009
(Request).
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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. CP2009-56.
In support of its Request, the Postal Service filed the following
materials: (1) A redacted version of the contract which, among other
things, provides that the contract will expire 3 years from the
effective date, which is proposed to be the day that the Commission
issues all regulatory approvals; \2\ (2) requested changes in the Mail
Classification Schedule product list; \3\ (3) a Statement of Supporting
Justification as required by 39 CFR 3020.32; \4\ and (4) certification
of compliance with 39 U.S.C. 3633(a).\5\ The Postal Service also
references Governors' Decision 09-6, filed in Docket No. MC2009-25, as
authorization of the new product. Notice at 1.
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\2\ Attachment A to the Request.
\3\ Attachment B to the Request.
\4\ Attachment C to the Request.
\5\ Attachment D to the Request.
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In the Statement of Supporting Justification, Mary Prince Anderson,
Acting Manager, Sales and Communications, Expedited Shipping, 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. Request, Attachment C, at 1. W. Ashley
[[Page 45328]]
Lyons, Manager, Regulatory Reporting and Cost Analysis, Finance
Department, certifies that the contract complies with 39 U.S.C.
3633(a). See id., Attachment D.
The Postal Service filed much of the supporting materials,
including the supporting data and the unredacted contract, 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, certain terms and
conditions, and financial projections, should remain confidential. Id.
at 2-3.
In Order No. 261, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\6\
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\6\ PRC Order No. 261, Notice and Order Concerning Priority Mail
Contract 17 Negotiated Service Agreement, July 29, 2009 (Order No.
261).
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III. Comments
Comments were filed by the Public Representative.\7\ No comments
were submitted by other interested parties. The Public Representative
states that the Postal Service's filing comports with title 39 and the
relevant Commission Rules of Practice and Procedure. Id. at 1, 3-4. He
further states that the agreement appears to be beneficial to the
general public, although he does question the utility of the contract's
30-day termination provision. Id. at 1, 4, 5-6.
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\7\ Public Representative Comments in Response to United States
Postal Service Request to Add Priority Mail Contract 17 to
Competitive Product List, August 7, 2009 (Public Representative
Comments). The Public Representative also filed a Motion of the
Public Representative for Late Acceptance of Comments in Response to
United States Postal Service Request to Add Priority Mail Contract
17 to Competitive Product List (Motion). That Motion is granted.
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With respect to confidentiality, the Public Representative believes
that ``[t]o comply with Order No. 247 in Docket[s] MC2009-30 and
CP2009-40, the Postal Service should include with its filing a redacted
copy of the Governors' Decision and certification.'' Id. at 3 (footnote
omitted).
IV. Commission Analysis
The Commission has reviewed the Request, 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 Priority Mail Contract 17 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. In determining whether to assign Priority
Mail Contract 17 as a product to the Market Dominant Product List or
the Competitive Product List, the Commission must consider whether
the Postal Service exercises sufficient market power that it can
effectively set the price of such product substantially above costs,
raise prices significantly, decrease quality, or decrease output,
without risk of losing a significant level of business to other
firms offering similar products.
39 U.S.C. 3642(b)(1). If so, the product will be categorized as market
dominant. The competitive category of products shall consist of all
other products.
The Commission is further required to consider the availability and
nature of enterprises in the private sector engaged in the delivery of
the product, the views of those who use the product, and the likely
impact on small business concerns. 39 U.S.C. 3642(b)(3).
The Postal Service asserts that its bargaining position is
constrained by the existence of other shippers who can provide similar
services, thus precluding it from taking unilateral action to increase
prices without the risk of losing volume to private companies. Request,
Attachment C, 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 expedited delivery services. Id. It
further states that the contract partner supports the addition of the
contract to the Competitive Product List to effectuate the negotiated
contractual terms. Id. at ] (g). Finally, the Postal Service states
that the market for expedited delivery services is highly competitive
and requires a substantial infrastructure to support a national
network. It indicates that large carriers serve this market.
Accordingly, the Postal Service states that it is unaware of any small
business concerns that could offer comparable service for this
customer. Id. at para. (h).
No commenter opposes the proposed classification of Priority Mail
Contract 17 as competitive. Having considered the statutory
requirements and the support offered by the Postal Service, the
Commission finds that Priority Mail Contract 17 is appropriately
classified as a competitive product and should be added to the
Competitive Product List.
Cost considerations. The Postal Service presents a financial
analysis showing that Priority Mail Contract 17 results in cost savings
while ensuring that the contract covers its attributable costs, does
not result in subsidization of competitive products by market dominant
products, and increases contribution from competitive products.
Based on the data submitted, the Commission finds that Priority
Mail Contract 17 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
proposed Priority Mail Contract 17 indicates that it comports with the
provisions applicable to rates for competitive products.
Other considerations. The Postal Service shall promptly notify the
Commission of the scheduled termination date of the agreement. The
Commission will then remove the product from the Competitive Product
List.
Furthermore, the Public Representative's assessment of Order No.
247 is well-taken. Public Representative Comments at 3-4. Subsequently,
the Commission issued Order No. 266, which clarified the policy
regarding self-contained docket filings. See Docket No. CP2009-47,
Order Concerning Filing a Functionally Equivalent Global Plus 1
Contract Negotiated Service Agreement, July 31, 2009, at 6-7 (Order No.
266). In recent filings, the Postal Service has adhered to this policy.
In conclusion, the Commission approves Priority Mail Contract 17 as
a new product. The revision to the Competitive Product List is shown
below the signature of this Order and is effective upon issuance of
this Order.
V. Ordering Paragraphs
It is ordered:
1. Priority Mail Contract 17 (MC2009-37 and CP2009-56) is added to
the Competitive Product List as a new product under Negotiated Service
Agreements, Domestic.
2. The Postal Service shall notify the Commission of the scheduled
termination date and update the Commission if termination occurs prior
to that date, as discussed in this order.
3. The Motion of the Public Representative for Late Acceptance of
Comments in Response to United States Postal Service Request to Add
Priority
[[Page 45329]]
Mail Contract 17 to Competitive Product List filed on August 7, 2009,
is granted.
4. The Secretary shall arrange for the publication of this order in
the Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure; Postal Service.
By the Commission.
Issued: August 14, 2009.
Judith M. Grady,
Acting 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
Schedule 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]
Certificate of Mailing
[Reserved for Product Description]
Collect on Delivery
[Reserved for Product Description]
Delivery Confirmation
[Reserved for Product Description]
Insurance
[Reserved for Product Description]
Merchandise Return Service
[Reserved for Product Description]
Parcel Airlift (PAL)
[Reserved for Product Description]
Registered Mail
[Reserved for Product Description]
Return Receipt
[Reserved for Product Description]
Return Receipt for Merchandise
[Reserved for Product Description]
Restricted Delivery
[Reserved for Product Description]
Shipper-Paid Forwarding
[Reserved for Product Description]
Signature Confirmation
[Reserved for Product Description]
Special Handling
[Reserved for Product Description]
Stamped Envelopes
[Reserved for Product Description]
Stamped Cards
[Reserved for Product Description]
Premium Stamped Stationery
[Reserved for Product Description]
Premium Stamped Cards
[Reserved for Product Description]
International Ancillary Services
[Reserved for Product Description]
International Certificate of Mailing
[Reserved for Product Description]
International Registered Mail
[Reserved for Product Description]
International Return Receipt
[Reserved for Product Description]
International Restricted Delivery
[Reserved for Product Description]
Address List Services
[Reserved for Product Description]
Caller Service
[Reserved for Product Description]
Change-of-Address Credit Card Authentication
[Reserved for Product Description]
Confirm
[Reserved for Product Description]
International Reply Coupon Service
[Reserved for Product Description]
International Business Reply Mail Service
[Reserved for Product Description]
Money Orders
[Reserved for Product Description]
Post Office Box Service
[Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
HSBC North America Holdings Inc. Negotiated Service Agreement
[Reserved for Product Description]
Bookspan Negotiated Service Agreement
[Reserved for Product Description]
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Part B--Competitive Products
2000 Competitive Product List
Express Mail
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1 (CP2008-7)
[[Page 45330]]
Inbound International Expedited Services 2 (MC2009-10 and
CP2009-12)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Royal Mail Group Inbound Air Parcel Post Agreement
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 Contract 4 (MC2009-34 and CP2009-45)
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)
Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009-
24)
Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009-
25)
Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009-
42)
Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009-
43)
Express Mail & Priority Mail Contract 8 (MC2009-33 and CP2009-
44)
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)
Priority Mail Contract 5 (MC2009-21 and CP2009-26)
Priority Mail Contract 6 (MC2009-25 and CP2009-30)
Priority Mail Contract 7 (MC2009-25 and CP2009-31)
Priority Mail Contract 8 (MC2009-25 and CP2009-32)
Priority Mail Contract 9 (MC2009-25 and CP2009-33)
Priority Mail Contract 10 (MC2009-25 and CP2009-34)
Priority Mail Contract 11 (MC2009-27 and CP2009-37)
Priority Mail Contract 12 (MC2009-28 and CP2009-38)
Priority Mail Contract 13 (MC2009-29 and CP2009-39)
Priority Mail Contract 14 (MC2009-30 and CP2009-40)
Priority Mail Contract 15 (MC2009-35 and CP2009-54)
Priority Mail Contract 17 (MC2009-37 and CP2009-56)
Outbound International
Direct Entry Parcels Contracts
Direct Entry Parcels 1 (MC2009-26 and CP2009-36)
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 (CP2008-8, CP2008-46 and CP2009-47)
Global Plus 2 (MC2008-7, CP2008-48 and CP2008-49)
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. E9-21208 Filed 9-1-09; 8:45 am]
BILLING CODE 7710-FW-P
