New Postal Product, 3988-3993 [2010-1452]

Download as PDF 3988 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations United States of America Federal Energy Regulatory Commission 18 CFR Part 381 [Docket No. RM10–14–000] Annual Update of Filing Fees in Part 381 Annual Update of Filing Fees (Issued January 20, 2010) The Federal Energy Regulatory Commission (Commission) is issuing this notice to update filing fees that the Commission assesses for specific services and benefits provided to identifiable beneficiaries. Pursuant to 18 CFR 381.104, the Commission is establishing updated fees on the basis of the Commission’s Fiscal Year 2009 costs. The adjusted fees announced in this notice are effective February 25, 2010. The Commission has determined, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget, that this Final Rule is not a major rule within the meaning of section 251 of Subtitle E of Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 804(2). The Commission is submitting this Final Rule to both houses of the United States Congress and to the Comptroller General of the United States. The new fee schedule is as follows: Fees Applicable to the Natural Gas Policy Act 1. Petitions for rate approval pursuant to 18 CFR 284.123(b)(2). (18 CFR 381.403) ...................................................................... Fees Applicable to General Activities 1. Petition for issuance of a declaratory order (except under Part I of the Federal Power Act). (18 CFR 381.302(a)) ................ 2. Review of a Department of Energy remedial order: Amount in controversy $0–9,999. (18 CFR 381.303(b)) ................................................................................................................................................... $10,000–29,999. (18 CFR 381.303(b)) ........................................................................................................................................ $30,000 or more. (18 CFR 381.303(a)) ....................................................................................................................................... 3. Review of a Department of Energy denial of adjustment: Amount in controversy $0–9,999. (18 CFR 381.304(b)) ................................................................................................................................................... $10,000–29,999. (18 CFR 381.304(b)) ........................................................................................................................................ $30,000 or more. (18 CFR 381.304(a)) ....................................................................................................................................... 4. Written legal interpretations by the Office of General Counsel. (18 CFR 381.305(a)) ............................................................... Fees Applicable to Natural Gas Pipelines 1. Pipeline certificate applications pursuant to 18 CFR 284.224. (18 CFR 381.207(b)) ................................................................. Fees Applicable to Cogenerators and Small Power Producers 1. Certification of qualifying status as a small power production facility. (18 CFR 381.505(a)) .................................................. 2. Certification of qualifying status as a cogeneration facility. (18 CFR 381.505(a)) ..................................................................... * This fee has not been changed. List of Subjects in 18 CFR Part 381 § 381.304 Electric power plants, Electric utilities, Natural gas, Reporting and recordkeeping requirements. [Amended] ■ In consideration of the foregoing, the Commission amends Part 381, Chapter I, Title 18, Code of Federal Regulations, as set forth below. 5. In 381.305, paragraph (a) is amended by removing ‘‘$6,470’’ and adding ‘‘$6,640’’ in its place. ■ § 381.403 [Amended] 6. Section 381.403 is amended by removing ‘‘$11,220’’ and adding ‘‘$11,520’’ in its place. ■ 1. The authority citation for Part 381 continues to read as follows: Authority: 15 U.S.C. 717–717w; 16 U.S.C. 791–828c, 2601–2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352; 49 U.S.C. 60502; 49 App. U.S.C. 1–85. WReier-Aviles on DSKGBLS3C1PROD with RULES § 381.302 [Amended] 2. In 381.302, paragraph (a) is amended by removing ‘‘$22,550’’ and adding ‘‘$23,140’’ in its place. ■ § 381.303 § 381.505 [Amended] 7. In 381.505, paragraph (a) is amended by removing ‘‘$19,390’’ and adding ‘‘$19,900’’ in its place and by removing ‘‘$21,950’’ and adding ‘‘$22,530’’ in its place. ■ [FR Doc. 2010–1446 Filed 1–25–10; 8:45 am] BILLING CODE P [Amended] 3. In 381.303, paragraph (a) is amended by removing ‘‘$32,920’’ and adding ‘‘$33,780’’ in its place. 13:55 Jan 25, 2010 Jkt 220001 * 1,000 19,900 22,530 [Docket Nos. MC2010–11 and CP2010–11; Order No. 362] Postal Regulatory Commission. Final rule. AGENCY: ACTION: SUMMARY: The Commission is adding Inbound Air Parcel Post at nonUniversal Postal Union rates to the product list. This action is consistent with changes in a postal reform law. The Commission is also making clarifying editorial changes to a related product that is already on the product list. Republication of the lists of market dominant and competitive products is consistent with a statutory requirement. DATES: Effective January 26, 2010 and is applicable beginning December 15, 2009. FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202–789–6820 or stephen.sharfman@prc.gov. Regulatory History, 74 FR 62357 (November 27, 2009). ■ VerDate Nov<24>2008 100 600 17,710 6,640 New Postal Product [Amended] PART 381—FEES ■ 100 600 33,780 39 CFR Part 3020 § 381.305 ■ 23,140 POSTAL REGULATORY COMMISSION 4. In 381.304, paragraph (a) is amended by removing ‘‘$17,260’’ and adding ‘‘$17,710’’ in its place. Thomas R. Herlihy, Executive Director. $11,520 SUPPLEMENTARY INFORMATION: PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\26JAR1.SGM 26JAR1 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations I. Introduction II. Background III. Comments IV. Commission Analysis V. Ordering Paragraphs I. Introduction The Postal Service seeks to add a new product, Inbound Air Parcel Post at Universal Postal Union (UPU) Rates, to the Competitive Product List. For the reasons discussed below, the Commission approves the Request. WReier-Aviles on DSKGBLS3C1PROD with RULES II. Background On November 17, 2009, the Postal Service filed a request pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Inbound Air Parcel Post at Universal Postal Union (UPU) Rates to the Competitive Product List.1 The Postal Service asserts that Inbound Air Parcel Post is a competitive product within the meaning of 39 U.S.C. 3632(b)(3). The Postal Service states that prices and classifications underlying these rates are supported by Governors’ Decision No. 09–15.2 Id. at 1–2. This Request has been assigned Docket No. MC2010–11. The Postal Service states that Governors’ Decision No. 09–15 establishes the prices for Inbound Air Parcel Post at UPU Rates and the changes in classification necessary to implement those prices. Id. at 3. Governors’ Decision No. 09–15 authorizes inward land rates when there is no contractual relationship with the tendering postal operator at the highest inward land rate for which the United States is eligible under the Parcel Post Regulations. Id. These rates are assigned Docket No. CP2010–11. Request. In support of its Request, the Postal Service filed the following materials: (1) An application for nonpublic treatment of pricing and supporting documents filed under seal; 3 (2) a Statement of Supporting Justification as required by 39 CFR 3020.32;4 (3) a redacted version of 1 Request of the United States Postal Service to Add Inbound Air Parcel Post at Universal Postal Union (UPU) Rates to the Competitive Products List, Notice of Establishment of Prices and Classifications Not of General Applicability for Inbound Air Parcel Post at UPU Rates Established in Governors’ Decision No. 09–15, and Application for Non-Public Treatment of Materials Filed Under Seal, November 17, 2009 (Request). 2 The Request and Governors’ Decision both note that the classification for Inbound Air Parcel Post was originally proposed by the Postal Service for the Mail Classification Schedule language in response to Docket No. RM2007–1, Order Establishing Ratemaking Regulations for Market Dominant and Competitive Products, October 29, 2007 (Order No. 43). Id. at 1. 3 Attachment 1 to the Request. 4 Attachment 2 to the Request. VerDate Nov<24>2008 13:55 Jan 25, 2010 Jkt 220001 Governors’ Decision No. 09–15 establishing prices and classifications for Inbound Air Parcel Post at UPU Rates, certification of the Governors’ vote, a certification of compliance with 39 U.S.C. 3633(a), proposed Mail Classification Schedule (MCS) language, and a Management Analysis of Inbound Air Parcel Post at UPU Rates.5 Inbound Air Parcels are eligible to receive transportation by air rather than surface. Governors’ Decision No. 09–15 at 2. The Postal Service indicates that the United States receives both air and surface parcels from foreign postal administrations which compensate the Postal Service for delivery of these parcels in the United States. It maintains that it has negotiated separate agreements for parcel rates with certain foreign posts, but most compensate it at the United States default rates for inbound parcel delivery. The default rates are known as inward land rates. The Postal Service notes that inward land rates are set according to formulas in the UPU Parcel Post Regulations which constitute international law. More specifically, the UPU Postal Operations Council sets these rates. Request at 2. The Postal Service states that UPU Parcel Post Regulations require that rates are based on a percentage of each member’s inward land rate in 2004.6 UPU members may qualify for percentage ‘‘bonuses’’ to their base rate based upon their provision of certain value-added services.7 The Postal Service states it is responsible for gathering information that the UPU Postal Operations Council uses to calculate the rates, including completion of a questionnaire on service bonus eligibility, and submission of annual inflation information from the Consumer Price Index for All Urban Consumers. It explains that the UPU uses this information from the member posts and publishes an annual notice in the fall establishing each postal administration’s parcel rates for the following year. Request at 3. The Postal Service states that because of the unique situation of setting inward land rates, it chose to establish rates for inbound air parcels by reference to the Universal Postal Convention. Id. 5 Attachment 3 to the Request. Postal Service states that the Parcel Post Regulations also permit members to seek an ‘‘inflation-linked increase’’ to its base inward land rate up to a cap of 5 percent. 7 The Postal Service states that services such as ‘‘track and trace, home delivery, published delivery standards, and use of a common inquiry system’’ qualify UPU members for bonuses. Id. Members may also seek an inflation-related adjustment to the base rate which is capped at 5 percent per year. 3989 In the Statement of Supporting Justification, Brian Hutchins, Manager, International Postal Relations, asserts that the product satisfies 39 U.S.C. 3633(a). Id., Attachment 2, at 1–2. W. Ashley Lyons, Manager, Regulatory Reporting and Cost Analysis, Finance Department, certifies that the contract complies with 39 U.S.C. 3633(a). Request, Attachment 3. He asserts that the prices for Inbound Air Parcel Post at UPU Rates ‘‘should cover its attributable costs and preclude the subsidization of competitive products by market dominant products.’’ Id. The Postal Service filed much of the supporting materials under seal. In its Request, the Postal Service maintains that certain portions of Governors’ Decision No. 09–15 and related financial information should remain confidential including portions of the management financial analysis of Inbound Air Parcel Post at UPU Rates and the accompanying analyses that provide prices, terms, conditions, cost data, and financial projections should remain under seal. Request at 2. Prices and classification changes established in Governors’ Decision No. 09–15 are scheduled to take effect January 1, 2010. Governors’ Decision No. 09–15 at 2. In Order No. 345, the Commission gave notice of the two dockets, appointed a public representative, and provided the public with an opportunity to comment.8 III. Comments Comments were filed by the Public Representative.9 No other interested person submitted comments. The Public Representative states the Postal Service Request complies with applicable provisions of title 39, Commission rules, and the UPU. Id. at 1. He also notes the Postal Service has provided a rationale for non-public treatment of the information under seal. Id. at 2. The Public Representative theorizes that in the instant agreement the Postal Service has not shown the cost coverage for Inbound Air Parcel Post is in compliance with 39 U.S.C. 3633. Id. at 4. He states that the Commission will have the ability to gain further information to determine cost coverage for this product with issuance of the Annual Compliance Determination (ACD). Id. However, the Public 6 The PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 8 PRC Order No. 345, Notice and Order Concerning Adding Inbound Air Parcel Post at UPU Rates to Competitive Product List, November 20, 2009 (Order No. 345). 9 Public Representatives Comments in Response to United States Postal Service Filing of Request to Add Inbound Air Parcel Post at UPU Rates to the Competitive Products List, December 7, 2009 (Public Representative Comments). E:\FR\FM\26JAR1.SGM 26JAR1 3990 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations WReier-Aviles on DSKGBLS3C1PROD with RULES Representative concludes that the Postal Service’s proposal results in a benefit to its customers and the general public. Id. at 5. IV. Commission Analysis The Commission has reviewed the Request, the agreement, the financial analysis filed under seal, and the comments filed by all parties. Statutory requirements. The Commission’s statutory responsibilities in this instance entail assigning the Inbound Air Parcel Post at UPU Rates 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 Inbound Air Parcel Post at UPU Rates 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 it does not have discretion to establish the formula for prices for Inbound Air Parcel Post at UPU Rates and therefore there is no connection between prices and the Postal Services’ market role. Request, Attachment 2, para. (d). It affirms, as discussed above, that inward land rates are set based on formulas in the UPU Parcel Post Regulations which constitute international law. Under the Universal Postal Convention, postal operators tender air parcels to each other for delivery in the destination country at prices set by the UPU Postal Operations Council, except where postal operators have negotiated alternative prices for air parcels. Governors’ Decision No. 09–15 at 1. As described VerDate Nov<24>2008 13:55 Jan 25, 2010 Jkt 220001 above, annually, UPU members may elect to send the UPU secretariat inflation information in accordance with the Parcel Post Regulations in order to seek an ‘‘inflation-linked increase’’ to its base inward land rate up to a cap of 5 percent. Additionally, UPU members may qualify for ‘‘bonuses’’ to their new base rate if they provide certain value-added services, such as home delivery. The Postal Service states that the United States completes a survey each year to qualify for the bonus based on its eligibility. Id. At the end of each year, the UPU’s secretariat publishes each member’s inward land rates based on its inflation information and questionnaire responses. Id. The Postal Service states that new rates are implemented at the beginning of the next calendar year and are effective until the end of that year. Id. Therefore, it concludes it does not exercise market power over this product relative to pricing. Request, Attachment 2, at 2. The Postal Service states there are private consolidators, freight forwarders, and integrators who can provide similar services. Id. at 3, para. (f). It further states that this agreement has been classified as competitive because of its exclusion from the letter monopoly and the level of competition in the relevant market. Id. at 3. The Postal Service notes that even though some incoming parcels subject to this agreement may contain letters, the prices paid under the agreement are higher than six times the rate for the current price of a one-ounce, singlepiece First-Class Mail letter. Id., para. (e). It also remarks that international parcel service has been a feature of the UPU system for decades which it suggests means that the international community finds the terms and conditions of the agreement satisfactory since there are competitive services available from private enterprises. The Postal Service states however, that it has no specific data on foreign postal operators or their customer’s views on the regulatory classification of Inbound Air Parcel Post at UPU Rates. Id., para. (g). The Postal Service states that the proposed modification is unlikely to have an impact on small business concerns since the product has been available for decades, and this agreement does not affect the availability of the service or the terms and conditions which affect small business. Id., para. (h). The Postal Service notes that the proposed modification does not concern a change in the rates for which the Postal Service exercises discretion, but this proceeding PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 formally presents the product for review by the Commission. Id., para. (i). The Postal Service’s Request notes that it has previously taken steps to add Inbound Air Parcel Post paying rates established through the UPU to the competitive products list and refers to Order No. 43.10 In Order No. 43, the Commission classified Inbound Air Parcel Post in the MCS as a competitive product, which included those at UPU rates. The Postal Service subsequently filed a negotiated service agreement with Royal Mail for Inbound Air Parcel Post which the Commission approved in Order No. 218, adding it as a new product to the Competitive Product List.11 The Postal Service proposes to add Inbound Air Parcel Post at UPU rates as a new product. See Request at 1. Thus, the Request presents for regulatory review a new product, Inbound Air Parcel Post at UPU Rates, for inclusion in the MCS. Having considered the statutory requirements, the support offered by the Postal Service, and all comments, the Commission finds that Inbound Air Parcel Post at UPU Rates is appropriately classified as a competitive product and that it shall be added to the Competitive Product List. The existing category, Inbound Air Parcel Post, shall be renamed Inbound Air Parcel Post (at non-UPU rates). Currently, this category includes the Royal Mail Inbound Air Parcel Post Agreement. Cost considerations. The Postal Service presents a financial analysis showing that the Inbound Air Parcel Post at UPU Rates product 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 Inbound Air Parcel Post at UPU Rates 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 Inbound Air Parcel Post at UPU Rates agreement 10 See Docket No. RM2007–1, Order Establishing Ratemaking Regulations for Market Dominant and Competitive Products, October 29, 2007 at para. 3030 ‘‘[A]ir Parcel Post Shipments are appropriately classified as competitive.’’ 11 See Docket Nos. MC2009–24 and CP2009–28, Order Concerning Royal Mail Inbound Air Parcel Post Negotiated Service Agreement, May 29, 2009. E:\FR\FM\26JAR1.SGM 26JAR1 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations indicates that it comports with the provisions applicable to rates for competitive products. In conclusion, the Commission approves Inbound Air Parcel Post at UPU Rates 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. Inbound Air Parcel Post (at UPU Rates) is added to the Competitive Product List as a new product. 2. The existing Inbound Air Parcel Post category which includes the Royal Mail Group Inbound Air Parcel Post Agreement shall be renamed Inbound Air Parcel Post (at non-UPU rates). 3. The Secretary shall arrange for the publication of this Order in the Federal Register. List of Subjects in 39 CFR Part 3020 Administrative Practice and Procedure; Postal Service. By the Commission. Shoshana M. Grove, Secretary. For the reasons discussed in the preamble, the Postal Regulatory Commission amends chapter III of title 39 of the Code of Federal Regulations as follows: ■ PART 3020—PRODUCT LISTS 1. The authority citation for part 3020 continues to read as follows: ■ Authority: 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: ■ WReier-Aviles on DSKGBLS3C1PROD with RULES 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 VerDate Nov<24>2008 13:55 Jan 25, 2010 Jkt 220001 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] PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 3991 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 Forward [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] E:\FR\FM\26JAR1.SGM 26JAR1 WReier-Aviles on DSKGBLS3C1PROD with RULES 3992 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations International Reply Coupon Service [Reserved for Product Description] International Business Reply Mail Service [Reserved for Product Description] Money Orders [Reserved for Product Description] Post Office Box Service [Reserved for Product Description] Negotiated Service Agreements [Reserved for Class Description] HSBC North America Holdings Inc. Negotiated Service Agreement [Reserved for Product Description] Bookspan Negotiated Service Agreement [Reserved for Product Description] Bank of America Corporation Negotiated Service Agreement The Bradford Group Negotiated Service Agreement Part B—Competitive Products 2000 Competitive Product List Express Mail Express Mail Outbound International Expedited Services Inbound International Expedited Services Inbound International Expedited Services 1 (CP2008–7) Inbound International Expedited Services 2 (MC2009–10 and CP2009–12) Priority Mail Priority Mail Outbound Priority Mail International Inbound Air Parcel Post (at non-UPU rates) Royal Mail Group Inbound Air Parcel Post Agreement Inbound Air Parcel Post (at UPU rates) 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 nonUPU 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 Contract 5 (MC2010– 5 and CP2010–5) Express Mail Contract 6 (MC2010–6 and CP2010–6) Express Mail Contract 7 (MC2010–7 and CP2010–7) VerDate Nov<24>2008 13:55 Jan 25, 2010 Jkt 220001 PO 00000 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 Select & Parcel Return Service Contract 1 (MC2009–11 and CP2009–13) Parcel Select & Parcel Return Service Contract 2 (MC2009–40 and CP2009–61) 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 16 (MC2009–36 and CP2009–55) Priority Mail Contract 17 (MC2009–37 and CP2009–56) Priority Mail Contract 18 (MC2009–42 and CP2009–63) Priority Mail Contract 19 (MC2010–1 and CP2010–1) Priority Mail Contract 20 (MC2010–2 and CP2010–2) Priority Mail Contract 21 (MC2010–3 and CP2010–3) Priority Mail Contract 22 (MC2010–4 and CP2010–4) Frm 00010 Fmt 4700 Sfmt 4700 Priority Mail Contract 23 (MC2010–9 and CP2010–9) 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, CP2008–13, CP2008–18, CP2008–19, CP2008–20, CP2008–21, CP2008–22, CP2008–23, and CP2008–24) Global Expedited Package Services 2 (CP2009–50) 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 Inbound Direct Entry Contracts with Foreign Postal Administrations (MC2008–6, CP2008–14 and MC2008–15) Inbound Direct Entry Contracts with Foreign Postal Administrations 1 (MC2008– 6 and CP2009–62) 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 Prduct Description] International Direct Sacks—M– Bags [Reserved for Product Description] Global Customized Shipping Services [Reserved for Product Description] E:\FR\FM\26JAR1.SGM 26JAR1 Federal Register / Vol. 75, No. 16 / Tuesday, January 26, 2010 / Rules and Regulations 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. 2010–1452 Filed 1–25–10; 8:45 am] BILLING CODE 7710–FW–S ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R08–OAR–2008–0307; FRL–8968–3] Approval and Promulgation of Air Quality Implementation Plans; Montana; Revisions to the Administrative Rules of Montana AGENCY: Environmental Protection Agency (EPA). ACTION: Direct final rule. EPA is taking direct final action approving State Implementation Plan (SIP) revisions submitted by the State of Montana on November 1, 2006 and November 20, 2007. The revisions are to the Administrative Rules of Montana; they include minor editorial and grammatical changes, updates to the citations and references to federal and state laws and regulations, other minor changes to conform to federal regulations, and updates to links to sources of information. This action is being taken under section 110 of the Clean Air Act. DATES: This rule is effective on March 29, 2010 without further notice, unless EPA receives adverse comment by February 25, 2010. If adverse comment is received, EPA will publish a timely withdrawal of the direct final rule in the Federal Register informing the public that the rule will not take effect. WReier-Aviles on DSKGBLS3C1PROD with RULES SUMMARY: VerDate Nov<24>2008 13:55 Jan 25, 2010 Jkt 220001 Submit your comments, identified by Docket ID No. EPA–R08– OAR–2008–0307, by one of the following methods: • https://www.regulations.gov. Follow the on-line instructions for submitting comments. • E-mail: dolan.kathy@epa.gov. • Fax: (303) 312–6064 (please alert the individual listed in the FOR FURTHER INFORMATION CONTACT if you are faxing comments). • Mail: Director, Air Program, Environmental Protection Agency (EPA), Region 8, Mailcode 8P–AR, 1595 Wynkoop Street, Denver, Colorado 80202–1129. • Hand Delivery: Director, Air Program, Environmental Protection Agency (EPA), Region 8, Mailcode 8P– AR, 1595 Wynkoop Street, Denver, Colorado 80202–1129. Such deliveries are only accepted Monday through Friday, 8 a.m. to 4:30 p.m., excluding Federal holidays. Special arrangements should be made for deliveries of boxed information. Instructions: Direct your comments to Docket ID No. EPA–R08–OAR–2008– 0307. EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at https:// www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through https:// www.regulations.gov or e-mail. The https://www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through https:// www.regulations.gov, your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional instructions on submitting comments, go to Section I. ADDRESSES: PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 3993 General Information of the SUPPLEMENTARY INFORMATION section of this document. Docket: All documents in the docket are listed in the https:// www.regulations.gov index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in https:// www.regulations.gov or in hard copy at the Air Program, Environmental Protection Agency (EPA), Region 8, 1595 Wynkoop Street, Denver, Colorado 80202–1129. EPA requests that if at all possible, you contact the individual listed in the FOR FURTHER INFORMATION CONTACT section to view the hard copy of the docket. You may view the hard copy of the docket Monday through Friday, 8 a.m. to 4 p.m., excluding Federal holidays. FOR FURTHER INFORMATION CONTACT: Kathy Dolan, Air Program, U.S. Environmental Protection Agency (EPA), Region 8, Mailcode 8P–AR, 1595 Wynkoop Street, Denver, Colorado 80202–1129. 303–312–6142, dolan.kathy@epa.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. General Information II. Summary of SIP Revisions III. EPA’s Review of the State of Montana’s November 1, 2006 and November 20, 2007 Submittals IV. Final Action V. Statutory and Executive Order Reviews Definitions For the purpose of this document, we are giving meaning to certain words or initials as follows: (i) The words or initials Act or CAA mean or refer to the Clean Air Act, unless the context indicates otherwise. (ii) The words EPA, we, us or our mean or refer to the United States Environmental Protection Agency. (iii) The initials SIP mean or refer to State Implementation Plan. (iv) The words State or Montana mean the State of Montana, unless the context indicates otherwise. I. General Information A. What Should I Consider as I Prepare My Comments for EPA? 1. Submitting CBI. Do not submit this information to EPA through https:// regulations.gov or e-mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI E:\FR\FM\26JAR1.SGM 26JAR1

Agencies

[Federal Register Volume 75, Number 16 (Tuesday, January 26, 2010)]
[Rules and Regulations]
[Pages 3988-3993]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1452]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

39 CFR Part 3020

[Docket Nos. MC2010-11 and CP2010-11; Order No. 362]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Final rule.

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

SUMMARY: The Commission is adding Inbound Air Parcel Post at non-
Universal Postal Union rates to the product list. This action is 
consistent with changes in a postal reform law. The Commission is also 
making clarifying editorial changes to a related product that is 
already on the product list. Republication of the lists of market 
dominant and competitive products is consistent with a statutory 
requirement.

DATES: Effective January 26, 2010 and is applicable beginning December 
15, 2009.

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

SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 62357 (November 
27, 2009).

[[Page 3989]]

I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs

I. Introduction

    The Postal Service seeks to add a new product, Inbound Air Parcel 
Post at Universal Postal Union (UPU) Rates, to the Competitive Product 
List. For the reasons discussed below, the Commission approves the 
Request.

II. Background

    On November 17, 2009, the Postal Service filed a request pursuant 
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Inbound Air Parcel 
Post at Universal Postal Union (UPU) Rates to the Competitive Product 
List.\1\ The Postal Service asserts that Inbound Air Parcel Post is a 
competitive product within the meaning of 39 U.S.C. 3632(b)(3).
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service to Add Inbound 
Air Parcel Post at Universal Postal Union (UPU) Rates to the 
Competitive Products List, Notice of Establishment of Prices and 
Classifications Not of General Applicability for Inbound Air Parcel 
Post at UPU Rates Established in Governors' Decision No. 09-15, and 
Application for Non-Public Treatment of Materials Filed Under Seal, 
November 17, 2009 (Request).
---------------------------------------------------------------------------

    The Postal Service states that prices and classifications 
underlying these rates are supported by Governors' Decision No. 09-
15.\2\ Id. at 1-2. This Request has been assigned Docket No. MC2010-11.
---------------------------------------------------------------------------

    \2\ The Request and Governors' Decision both note that the 
classification for Inbound Air Parcel Post was originally proposed 
by the Postal Service for the Mail Classification Schedule language 
in response to Docket No. RM2007-1, Order Establishing Ratemaking 
Regulations for Market Dominant and Competitive Products, October 
29, 2007 (Order No. 43). Id. at 1.
---------------------------------------------------------------------------

    The Postal Service states that Governors' Decision No. 09-15 
establishes the prices for Inbound Air Parcel Post at UPU Rates and the 
changes in classification necessary to implement those prices. Id. at 
3. Governors' Decision No. 09-15 authorizes inward land rates when 
there is no contractual relationship with the tendering postal operator 
at the highest inward land rate for which the United States is eligible 
under the Parcel Post Regulations. Id. These rates are assigned Docket 
No. CP2010-11.
    Request. In support of its Request, the Postal Service filed the 
following materials: (1) An application for non-public treatment of 
pricing and supporting documents filed under seal; \3\ (2) a Statement 
of Supporting Justification as required by 39 CFR 3020.32;\4\ (3) a 
redacted version of Governors' Decision No. 09-15 establishing prices 
and classifications for Inbound Air Parcel Post at UPU Rates, 
certification of the Governors' vote, a certification of compliance 
with 39 U.S.C. 3633(a), proposed Mail Classification Schedule (MCS) 
language, and a Management Analysis of Inbound Air Parcel Post at UPU 
Rates.\5\
---------------------------------------------------------------------------

    \3\ Attachment 1 to the Request.
    \4\ Attachment 2 to the Request.
    \5\ Attachment 3 to the Request.
---------------------------------------------------------------------------

    Inbound Air Parcels are eligible to receive transportation by air 
rather than surface. Governors' Decision No. 09-15 at 2. The Postal 
Service indicates that the United States receives both air and surface 
parcels from foreign postal administrations which compensate the Postal 
Service for delivery of these parcels in the United States. It 
maintains that it has negotiated separate agreements for parcel rates 
with certain foreign posts, but most compensate it at the United States 
default rates for inbound parcel delivery. The default rates are known 
as inward land rates. The Postal Service notes that inward land rates 
are set according to formulas in the UPU Parcel Post Regulations which 
constitute international law. More specifically, the UPU Postal 
Operations Council sets these rates. Request at 2.
    The Postal Service states that UPU Parcel Post Regulations require 
that rates are based on a percentage of each member's inward land rate 
in 2004.\6\ UPU members may qualify for percentage ``bonuses'' to their 
base rate based upon their provision of certain value-added 
services.\7\ The Postal Service states it is responsible for gathering 
information that the UPU Postal Operations Council uses to calculate 
the rates, including completion of a questionnaire on service bonus 
eligibility, and submission of annual inflation information from the 
Consumer Price Index for All Urban Consumers. It explains that the UPU 
uses this information from the member posts and publishes an annual 
notice in the fall establishing each postal administration's parcel 
rates for the following year. Request at 3.
---------------------------------------------------------------------------

    \6\ The Postal Service states that the Parcel Post Regulations 
also permit members to seek an ``inflation-linked increase'' to its 
base inward land rate up to a cap of 5 percent.
    \7\ The Postal Service states that services such as ``track and 
trace, home delivery, published delivery standards, and use of a 
common inquiry system'' qualify UPU members for bonuses. Id. Members 
may also seek an inflation-related adjustment to the base rate which 
is capped at 5 percent per year.
---------------------------------------------------------------------------

    The Postal Service states that because of the unique situation of 
setting inward land rates, it chose to establish rates for inbound air 
parcels by reference to the Universal Postal Convention. Id.
    In the Statement of Supporting Justification, Brian Hutchins, 
Manager, International Postal Relations, asserts that the product 
satisfies 39 U.S.C. 3633(a). Id., Attachment 2, at 1-2.
    W. Ashley Lyons, Manager, Regulatory Reporting and Cost Analysis, 
Finance Department, certifies that the contract complies with 39 U.S.C. 
3633(a). Request, Attachment 3. He asserts that the prices for Inbound 
Air Parcel Post at UPU Rates ``should cover its attributable costs and 
preclude the subsidization of competitive products by market dominant 
products.'' Id.
    The Postal Service filed much of the supporting materials under 
seal. In its Request, the Postal Service maintains that certain 
portions of Governors' Decision No. 09-15 and related financial 
information should remain confidential including portions of the 
management financial analysis of Inbound Air Parcel Post at UPU Rates 
and the accompanying analyses that provide prices, terms, conditions, 
cost data, and financial projections should remain under seal. Request 
at 2. Prices and classification changes established in Governors' 
Decision No. 09-15 are scheduled to take effect January 1, 2010. 
Governors' Decision No. 09-15 at 2.
    In Order No. 345, the Commission gave notice of the two dockets, 
appointed a public representative, and provided the public with an 
opportunity to comment.\8\
---------------------------------------------------------------------------

    \8\ PRC Order No. 345, Notice and Order Concerning Adding 
Inbound Air Parcel Post at UPU Rates to Competitive Product List, 
November 20, 2009 (Order No. 345).
---------------------------------------------------------------------------

III. Comments

    Comments were filed by the Public Representative.\9\ No other 
interested person submitted comments. The Public Representative states 
the Postal Service Request complies with applicable provisions of title 
39, Commission rules, and the UPU. Id. at 1. He also notes the Postal 
Service has provided a rationale for non-public treatment of the 
information under seal. Id. at 2.
---------------------------------------------------------------------------

    \9\ Public Representatives Comments in Response to United States 
Postal Service Filing of Request to Add Inbound Air Parcel Post at 
UPU Rates to the Competitive Products List, December 7, 2009 (Public 
Representative Comments).
---------------------------------------------------------------------------

    The Public Representative theorizes that in the instant agreement 
the Postal Service has not shown the cost coverage for Inbound Air 
Parcel Post is in compliance with 39 U.S.C. 3633. Id. at 4. He states 
that the Commission will have the ability to gain further information 
to determine cost coverage for this product with issuance of the Annual 
Compliance Determination (ACD). Id. However, the Public

[[Page 3990]]

Representative concludes that the Postal Service's proposal results in 
a benefit to its customers and the general public. Id. at 5.

IV. Commission Analysis

    The Commission has reviewed the Request, the agreement, the 
financial analysis filed under seal, and the comments filed by all 
parties.
    Statutory requirements. The Commission's statutory responsibilities 
in this instance entail assigning the Inbound Air Parcel Post at UPU 
Rates 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 Inbound 
Air Parcel Post at UPU Rates 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 it does not have discretion to 
establish the formula for prices for Inbound Air Parcel Post at UPU 
Rates and therefore there is no connection between prices and the 
Postal Services' market role. Request, Attachment 2, para. (d). It 
affirms, as discussed above, that inward land rates are set based on 
formulas in the UPU Parcel Post Regulations which constitute 
international law. Under the Universal Postal Convention, postal 
operators tender air parcels to each other for delivery in the 
destination country at prices set by the UPU Postal Operations Council, 
except where postal operators have negotiated alternative prices for 
air parcels. Governors' Decision No. 09-15 at 1. As described above, 
annually, UPU members may elect to send the UPU secretariat inflation 
information in accordance with the Parcel Post Regulations in order to 
seek an ``inflation-linked increase'' to its base inward land rate up 
to a cap of 5 percent. Additionally, UPU members may qualify for 
``bonuses'' to their new base rate if they provide certain value-added 
services, such as home delivery.
    The Postal Service states that the United States completes a survey 
each year to qualify for the bonus based on its eligibility. Id. At the 
end of each year, the UPU's secretariat publishes each member's inward 
land rates based on its inflation information and questionnaire 
responses. Id. The Postal Service states that new rates are implemented 
at the beginning of the next calendar year and are effective until the 
end of that year. Id. Therefore, it concludes it does not exercise 
market power over this product relative to pricing. Request, Attachment 
2, at 2.
    The Postal Service states there are private consolidators, freight 
forwarders, and integrators who can provide similar services. Id. at 3, 
para. (f). It further states that this agreement has been classified as 
competitive because of its exclusion from the letter monopoly and the 
level of competition in the relevant market. Id. at 3.
    The Postal Service notes that even though some incoming parcels 
subject to this agreement may contain letters, the prices paid under 
the agreement are higher than six times the rate for the current price 
of a one-ounce, single-piece First-Class Mail letter. Id., para. (e). 
It also remarks that international parcel service has been a feature of 
the UPU system for decades which it suggests means that the 
international community finds the terms and conditions of the agreement 
satisfactory since there are competitive services available from 
private enterprises. The Postal Service states however, that it has no 
specific data on foreign postal operators or their customer's views on 
the regulatory classification of Inbound Air Parcel Post at UPU Rates. 
Id., para. (g). The Postal Service states that the proposed 
modification is unlikely to have an impact on small business concerns 
since the product has been available for decades, and this agreement 
does not affect the availability of the service or the terms and 
conditions which affect small business. Id., para. (h). The Postal 
Service notes that the proposed modification does not concern a change 
in the rates for which the Postal Service exercises discretion, but 
this proceeding formally presents the product for review by the 
Commission. Id., para. (i).
    The Postal Service's Request notes that it has previously taken 
steps to add Inbound Air Parcel Post paying rates established through 
the UPU to the competitive products list and refers to Order No. 
43.\10\ In Order No. 43, the Commission classified Inbound Air Parcel 
Post in the MCS as a competitive product, which included those at UPU 
rates. The Postal Service subsequently filed a negotiated service 
agreement with Royal Mail for Inbound Air Parcel Post which the 
Commission approved in Order No. 218, adding it as a new product to the 
Competitive Product List.\11\
---------------------------------------------------------------------------

    \10\ See Docket No. RM2007-1, Order Establishing Ratemaking 
Regulations for Market Dominant and Competitive Products, October 
29, 2007 at para. 3030 ``[A]ir Parcel Post Shipments are 
appropriately classified as competitive.''
    \11\ See Docket Nos. MC2009-24 and CP2009-28, Order Concerning 
Royal Mail Inbound Air Parcel Post Negotiated Service Agreement, May 
29, 2009.
---------------------------------------------------------------------------

    The Postal Service proposes to add Inbound Air Parcel Post at UPU 
rates as a new product. See Request at 1. Thus, the Request presents 
for regulatory review a new product, Inbound Air Parcel Post at UPU 
Rates, for inclusion in the MCS.
    Having considered the statutory requirements, the support offered 
by the Postal Service, and all comments, the Commission finds that 
Inbound Air Parcel Post at UPU Rates is appropriately classified as a 
competitive product and that it shall be added to the Competitive 
Product List.
    The existing category, Inbound Air Parcel Post, shall be renamed 
Inbound Air Parcel Post (at non-UPU rates). Currently, this category 
includes the Royal Mail Inbound Air Parcel Post Agreement.
    Cost considerations. The Postal Service presents a financial 
analysis showing that the Inbound Air Parcel Post at UPU Rates product 
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 Inbound Air 
Parcel Post at UPU Rates 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 Inbound Air Parcel Post at UPU Rates agreement

[[Page 3991]]

indicates that it comports with the provisions applicable to rates for 
competitive products.
    In conclusion, the Commission approves Inbound Air Parcel Post at 
UPU Rates 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. Inbound Air Parcel Post (at UPU Rates) is added to the 
Competitive Product List as a new product.
    2. The existing Inbound Air Parcel Post category which includes the 
Royal Mail Group Inbound Air Parcel Post Agreement shall be renamed 
Inbound Air Parcel Post (at non-UPU rates).
    3. The Secretary shall arrange for the publication of this Order in 
the Federal Register.

List of Subjects in 39 CFR Part 3020

    Administrative Practice and Procedure; Postal Service.

    By the Commission.
Shoshana M. Grove,
Secretary.

0
For the reasons discussed in the preamble, the Postal Regulatory 
Commission amends chapter III of title 39 of the Code of Federal 
Regulations as follows:

PART 3020--PRODUCT LISTS

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

    Authority: 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 Forward
    [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]

[[Page 3992]]

 
    International Reply Coupon Service
    [Reserved for Product Description]
    International Business Reply Mail Service
    [Reserved for Product Description]
    Money Orders
    [Reserved for Product Description]
    Post Office Box Service
    [Reserved for Product Description]
Negotiated Service Agreements
[Reserved for Class Description]
    HSBC North America Holdings Inc. Negotiated Service Agreement
    [Reserved for Product Description]
    Bookspan Negotiated Service Agreement
    [Reserved for Product Description]
    Bank of America Corporation Negotiated Service Agreement
    The Bradford Group Negotiated Service Agreement
Part B--Competitive Products
2000 Competitive Product List
Express Mail
    Express Mail
    Outbound International Expedited Services
    Inbound International Expedited Services
        Inbound International Expedited Services 1 (CP2008-7)
        Inbound International Expedited Services 2 (MC2009-10 and CP2009-
         12)
Priority Mail
    Priority Mail
    Outbound Priority Mail International
    Inbound Air Parcel Post (at non-UPU rates)
        Royal Mail Group Inbound Air Parcel Post Agreement
    Inbound Air Parcel Post (at UPU rates)
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 Contract 5 (MC2010-5 and CP2010-5)
        Express Mail Contract 6 (MC2010--6 and CP2010-6)
        Express Mail Contract 7 (MC2010--7 and CP2010-7)
        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 Select & Parcel Return Service Contract 1 (MC2009-11 and
         CP2009-13)
        Parcel Select & Parcel Return Service Contract 2 (MC2009-40 and
         CP2009-61)
        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 16 (MC2009-36 and CP2009-55)
        Priority Mail Contract 17 (MC2009-37 and CP2009-56)
        Priority Mail Contract 18 (MC2009-42 and CP2009-63)
        Priority Mail Contract 19 (MC2010-1 and CP2010-1)
        Priority Mail Contract 20 (MC2010-2 and CP2010-2)
        Priority Mail Contract 21 (MC2010-3 and CP2010-3)
        Priority Mail Contract 22 (MC2010-4 and CP2010-4)
        Priority Mail Contract 23 (MC2010-9 and CP2010-9)
    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, CP2008-13, CP2008-
             18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23,
             and CP2008-24)
            Global Expedited Package Services 2 (CP2009-50)
        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
            Inbound Direct Entry Contracts with Foreign Postal
             Administrations (MC2008-6, CP2008-14 and MC2008-15)
            Inbound Direct Entry Contracts with Foreign Postal
             Administrations 1 (MC2008-6 and CP2009-62)
        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 Prduct Description]
        International Direct Sacks--M-Bags
        [Reserved for Product Description]
        Global Customized Shipping Services
        [Reserved for Product Description]

[[Page 3993]]

 
        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. 2010-1452 Filed 1-25-10; 8:45 am]
BILLING CODE 7710-FW-S
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