New Postal Product, 4693-4698 [2010-1804]
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Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Rules and Regulations
susceptible strains of yeast (Malassezia
pachydermatis) and bacteria
(Staphylococcus pseudintermedius).
The NADA is approved as of November
23, 2009, and the regulations are
amended in 21 CFR part 524 by adding
new 21 CFR 524.1445 to reflect the
approval.
In accordance with the freedom of
information provisions of 21 CFR part
20 and 21 CFR 514.11(e)(2)(ii), a
summary of safety and effectiveness
data and information submitted to
support approval of this application
may be seen in the Division of Dockets
Management (HFA–305), Food and Drug
Administration, 5630 Fishers Lane, rm.
1061, Rockville, MD 20852, between 9
a.m. and 4 p.m., Monday through
Friday.
FDA has determined under 21 CFR
25.33 that this action is of a type that
does not individually or cumulatively
have a significant effect on the human
environment. Therefore, neither an
environmental assessment nor an
environmental impact statement is
required.
Under section 512(c)(2)(F)(ii) of the
Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 360b(c)(2)(F)(ii)), this
approval qualifies for 3 years of
marketing exclusivity beginning on the
date of approval.
This rule does not meet the definition
of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because
it is a rule of ‘‘particular applicability.’’
Therefore, it is not subject to the
congressional review requirements in 5
U.S.C. 801–808.
List of Subjects in 21 CFR Part 524
Animal drugs.
Therefore, under the Federal Food,
Drug, and Cosmetic Act and under
authority delegated to the Commissioner
of Food and Drugs and redelegated to
the Center for Veterinary Medicine, 21
CFR part 524 is amended as follows:
■
PART 524—OPHTHALMIC AND
TOPICAL DOSAGE FORM NEW
ANIMAL DRUGS
1. The authority citation for 21 CFR
part 524 continues to read as follows:
■
Authority: 21 U.S.C. 360b.
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■
2. Add § 524.1445 to read as follows:
§ 524.1445 Miconazole, polymixin B, and
prednisolone suspension.
(a) Specifications. Each milliliter of
suspension contains 23 milligrams (mg)
miconazole nitrate, 0.5293 mg
polymixin B sulfate, and 5 mg
prednisolone acetate.
(b) Sponsor. See No. 012578 in
510.600(c) of this chapter.
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(c) Conditions of use in dogs—(1)
Amount. Instill five drops in the ear
canal twice daily for 7 consecutive days.
(2) Indications for use. For the
treatment of canine otitis externa
associated with susceptible strains of
yeast (Malassezia pachydermatis) and
bacteria (Staphylococcus
pseudintermedius).
(3) Limitations. Federal law restricts
this drug to use by or on the order of
a licensed veterinarian.
Dated: January 22, 2010.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
[FR Doc. 2010–1794 Filed 1–28–10; 8:45 am]
BILLING CODE 4160–01–S
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2009–1129]
Drawbridge Operation Regulation;
Inner Harbor Navigational Canal, New
Orleans, LA
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
AGENCY:
ACTION:
SUMMARY: The Commander, Eighth
Coast Guard District, has issued a
temporary deviation from the regulation
governing the operation of the Senator
Ted Hickey (Leon C. Simon) Bascule
Bridge across the Inner Harbor
Navigational Canal, mile 4.6, at New
Orleans, LA. The deviation is necessary
to ensure the safety of pedestrians as
they bike across the bridge for the
Ochsner Ironman 70.3 New Orleans
event. This deviation allows the bridge
to remain closed during the event.
DATES: This deviation is effective from
5 a.m. to 2 p.m. on April 18, 2010.
ADDRESSES: Documents mentioned in
this preamble as being available in the
docket are part of docket USCG–2009–
1129 and are available online by going
to https://www.regulations.gov, inserting
USCG–2009–1129 in the ‘‘Keyword’’ box
and then clicking ‘‘Search’’. They are
also available for inspection or copying
at the Docket Management Facility (M–
30), U.S. Department of Transportation,
West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
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4693
e-mail Lindsey Middleton, Bridge
Administration Branch; telephone 504–
671–2128, e-mail
Lindsey.R.Middleton@uscg.mil. If you
have questions on viewing the docket,
call Renee V. Wright, Program Manager,
Docket Operations, telephone 202–366–
9826.
SUPPLEMENTARY INFORMATION: The bridge
owner approved the request for the
closure of the Senator Ted Hickey (Leon
C. Simon) Bascule Bridge on Seabrook
Highway crossing the Inner Harbor
Navigational Canal, mile 4.6, in New
Orleans, LA. In the closed-to-navigation
position, the vertical clearance of the
bridge is 45 feet above mean sea level.
Currently, according to 33 CFR 117.458
(c), The draw of the Leon C. Simon
Blvd. (Seabrook) bridge, mile 4.6, shall
open on signal; except that, from 7 a.m.
to 8:30 a.m. and 5 p.m. to 6:30 p.m.
Monday through Friday, the draw need
not be opened. This deviation allows
the draw span of the bridge to remain
closed to navigation between 5 a.m. and
2 p.m. on April 18, 2010 while the
Ironman contenders travel across the
bridge as part of the 56 mile bike course.
Navigation on the waterway consists
mainly of tugs with tows. As a result of
coordination between the Coast Guard
and the waterway users, it has been
determined that this closure will not
have a significant effect on these
vessels. The Coast Guard will inform
users through the Local and Broadcast
Notice to Mariners of the closure period.
There are alternate routes available to
vessel traffic. Vessels that can pass
under the bridge in the closed-tonavigation position can do so at any
time. The bridge will not be able to open
for emergencies.
In accordance with 33 CFR 117.35(e),
the drawbridge must return to its regular
operating schedule immediately at the
end of the designated time period. This
deviation from the operating regulations
is authorized under 33 CFR 117.35.
Dated: January 19, 2010.
David M. Frank,
Bridge Administrator.
[FR Doc. 2010–1801 Filed 1–28–10; 8:45 am]
BILLING CODE 9110–04–P
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2010–13 and CP2010–12;
Order No. 365]
New Postal Product
Postal Regulatory Commission.
Final rule.
AGENCY:
ACTION:
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SUMMARY: The Commission is adding
Inbound International Expedited
International Services 3 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 January 29, 2010 and is
applicable beginning December 22,
2009.
FOR FURTHER INFORMATION CONTACT:
Stephen L. Sharfman, General Counsel,
202–789–6820 or
stephen.sharfman@prc.gov.
Regulatory
History, 74 FR 65170 (December 9,
2009).
I. Introduction
II. Background
III. Comments
IV. Commission Analysis
V. Ordering Paragraphs
SUPPLEMENTARY INFORMATION:
I. Introduction
The Postal Service seeks to add a new
product identified as Inbound
International Expedited Services 1 to
the Competitive Product List. For the
reasons discussed below, the
Commission approves the Request, but
designates the new product as Inbound
International Expedited Services 3.
II. Background
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On November 20, 2009, the Postal
Service filed a request pursuant to 39
U.S.C. 3642 and 39 CFR 3020.30 et seq.
to add Inbound International Expedited
Services 1 to the Competitive Product
List.1 The Postal Service asserts that
Inbound International Expedited
Services 1 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. 08–5.2 Id. at 1–2. This
Request has been assigned Docket No.
MC2010–13.
The Postal Service states that
Governors’ Decision No. 08–5
establishes the prices for Inbound
International Expedited Services 1 and
the changes in classification ‘‘not of
1 Request to Add Inbound International Expedited
Services 1 to the Competitive Product List, and
Notice of United States Postal Service of Filing
China Post Group-United States Postal Service
Contractual Bilateral Agreement (Under Seal),
November 20, 2009 (Request).
2 Governors’ Decision No. 08–5, April 1, 2008,
established prices for the inbound services offered
under Express Mail International bilateral/
multilateral agreements.
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general applicability’’ necessary to
implement those prices. Id. at 1.
The Postal Service
contemporaneously filed notice,
pursuant to 39 U.S.C. 3632(b)(3) and 39
CFR 3015.5, that it has entered into a
contractual bilateral agreement
(Agreement) governing bilateral rates for
Express Mail Service (EMS) with China
Post Group, the public postal operator
in the People’s Republic of China. The
Postal Service states that the supporting
financial materials included in this
filing indicate that the inbound EMS
rates comply with the requirements of
39 U.S.C. 3633(a). Id. at 2. The rates as
established in the bilateral agreement
are assigned Docket No. CP2010–12.
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 redacted version
of Governors’ Decision No. 08–5
establishing prices and classifications
for services offered under EMS bilateral/
multilateral agreements; Mail
Classification Schedule (MCS) language
applicable to Inbound EMS bilateral/
multilateral agreements; formulas for
inbound prices under EMS bilateral/
multilateral agreements; and an analysis
of the formulas, certification of the
Governors’ vote, and certification of
compliance with 39 U.S.C. 3633(3)(a);4
(3) a redacted version of the China Post
Group bilateral agreement;5 (4)
certification of prices for the bilateral
agreement;6 and (5) a Statement of
Supporting Justification as required by
39 CFR 3020.32.7
On June 1, 2008, the Postal Service
filed notice of Governors’ Decision No.
08–5 in Docket Nos. CP2008–6 and
CP2008–7.8 These dockets gave notice
of a competitive negotiated service
agreement with China Post Group
covering EMS prices.9 In Order No. 84,
the Commission added the China Post
Agreement as a product not of general
applicability to the competitive product
list as Inbound International Expedited
Services 1.10 The Postal Service states
3 Attachment
1 to the Request.
2 to the Request.
5 Attachment 3 to the Request.
6 Attachment 4 to the Request.
7 Attachment 5 to the Request.
8 See Docket Nos. CP2008–6 and CP2008–7,
Notice and Order Concerning Prices Under Express
Mail International Bilateral/Multilateral
Agreements, June 3, 2008. The Commission
consolidated Docket No. CP2008–6 with Docket No.
CP2008–7 in this Order.
9 See Docket No. CP2008–7, Notice of United
States Postal Service of Filing an Agreement for
Inbound Express Mail International (EMS) Prices,
May 20, 2008.
10 Docket No. CP2008–7, Order Concerning the
China Post Group Inbound EMS Agreement, June
27, 2008 (Order No. 84).
4 Attachment
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the agreement became effective on July
15, 2008, and continued in effect until
July 14, 2009. Request at 3. The Postal
Service entered into a new agreement
with the China Post Group on November
16, 2009. The Postal Service now
requests to restore the Inbound
International Expedited Services 1
product to the Competitive Product List.
Id.
The bilateral agreement establishes
alternative, negotiated rates to China
Post Group for inbound EMS, instead of
the EMS 2 product rates that would
otherwise be applicable.11 The Postal
Service notes that the inbound portion
of the bilateral agreement fits within the
MCS language included as Attachment
A to Governors’ Decision No. 08–5. The
agreement becomes effective upon
completion of all necessary regulatory
reviews, but in no case earlier than
January 1, 2010. The agreement
continues in effect until terminated,
which may occur upon 30 days’ notice
by either party. The negotiated prices
are subject to change based upon
contingencies included in the
agreement. Id. at 4. If rates change, the
Postal Service will offer China Post
Group EMS rates reflecting an adjusted
rate. Id.
The Postal Service states that the new
agreement is functionally equivalent to
the prior contract reviewed by the
Commission except for different rates
that may be applicable to certain flows
in the new agreement. Id. at 5. It notes
the instant agreement exhibits the same
cost and market characteristics as the
previous agreement. The Postal Service
describes minor changes in the instant
agreement which include changes in
standard clauses due to the
Commission’s confidentiality rules and
other internal issues. Id.
In the Statement of Supporting
Justification, Kang Zhang, General
Manager, Business Development, Asia/
Pacific, Global Business Development,
asserts that ‘‘[t]he addition of [the
Bilateral] Agreement as a competitive
product will enable the Commission to
verify that each contract covers its
attributable costs and enables
competitive products, as a whole, to
make a positive contribution to coverage
of institutional costs.’’ He further states
that as a result, ‘‘no issue of
subsidization of competitive products
by market dominant products arises.’’
Id., Attachment 5.
11 The Postal Service states that in the absence of
this negotiated agreement, EMS rates for calendar
year 2010 as reviewed by the Commission in Docket
No. CP2009–57 would apply. Id. at 4. See Docket
No. CP2009–57, Order Concerning Filing of
Changes in Rates for Inbound International
Expedited Services 2, August 19, 2009.
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Joseph Moeller, Manager, Regulatory
Reporting and Cost Analysis, Finance
Department, certifies that the contract
complies with 39 U.S.C. 3633(a). Id.,
Attachment 4. He asserts that the prices
for the China Post Group bilateral
agreement ‘‘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, including the
specific bilateral agreement, under seal.
Request at 5. In its Request, the Postal
Service maintains that certain portions
of the contract, the rates, descriptions of
the rates, and related financial
information should remain under seal.
Id., Attachment 1.
In Order No. 347, the Commission
gave notice of the two dockets,
appointed a public representative, and
provided the public with an opportunity
to comment.12
III. Comments
Comments were filed by the Public
Representative.13 No other interested
person submitted comments. The Public
Representative states that the prices and
classifications underlying the rates in
the bilateral agreement are supported by
Governor’s Decision No. 08–5, which
was originally filed in Docket Nos.
CP2008–6 and CP2008–7. Id. at 2. He
finds that the agreement appears to be
in compliance with 39 CFR 3015.5,
3020.30 and 39 U.S.C. 3632, 3633(a) and
3642. Id.
He states that the Postal Service has
provided adequate justification for
maintaining confidentiality in this case.
Id. at 2–3. The Public Representative
further states that based on review of the
supporting data, the agreement satisfies
the requirements of 39 U.S.C. 3633(a).
Id. at 2.
The Public Representative concludes
that the bilateral agreement comports
with the provisions of title 39 and offers
negotiated pricing, dispatch methods,
and other negotiated provisions
favorable both to the Postal Service and
general public. Id. at 3.
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IV. Commission Analysis
The Commission has reviewed the
agreement, the financial analysis
provided under seal that accompanies
12 PRC Order No. 347, Notice and Order
Concerning Adding Inbound International
Expedited Services 1 to the Competitive Product
List and China Post Group Bilateral Agreement,
November 25, 2009 (Order No. 347).
13 See Public Representatives Comments in
Response to United States Postal Service Request to
Add Inbound International Expedited Services 1 to
the Competitive Product List and China Post
Bilateral Agreement, December 10, 2009 (Public
Representative Comments).
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it, and the comments filed by the Public
Representative.
Statutory requirements. The
Commission’s statutory responsibilities
in this instance entail assigning the
Agreement to either the Market
Dominant Product List or to the
Competitive Product List. 39 U.S.C.
3642. As part of this responsibility, the
Commission also reviews the proposal
for compliance with the Postal
Accountability and Enhancement Act
(PAEA) requirements. 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 the
Agreement 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 5,
para. (d). It also contends that it may not
decrease quality or output without
risking the loss of business to large
competitors that offer similar expedited
delivery services. Id. The Postal Service
states that the bilateral agreement prices
provide sufficient incentive for China
Post Group and its customers to tender
EMS volume to the Postal Service rather
than a competitor. The Postal Service
further states that raising its prices
could risk losing its China Post Group
volume to a private competitor in the
international shipping industry. Id.
The Postal Service relates that the
instant bilateral agreement’s terms relate
to the exchange between the Postal
Service and China Post Group for
Inbound EMS at negotiated prices
which has been classified as
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competitive because of its exclusion
from the letter monopoly and the level
of competition in the relevant market.
Id. It contends that even if the EMS
tendered under the bilateral agreement
might contain ‘‘letters’’ as defined in
postal regulations, the EMS items at
issue in the agreement fall outside the
Private Express Statutes because all
prices paid by China Post Group exceed
six times the rate for the first ounce of
a First-Class Mail letter. Id., para. (e).
Additionally, the Postal Service
contends that many inbound EMS items
may be expected to weigh more than
12.5 ounces. Id.
Finally, the Postal Service states that
private consolidators, freight
forwarders, and integrators offer
international shipping services using
EMS. It notes that delivery of EMS in
the domestic service area of the United
States requires a substantial
infrastructure to support a national
network and as a result large carriers
serve this market. Id., para. (f). The
Postal Service mentions that it has no
specific data on China Post Group’s or
its customers’ view on the regulatory
classification of this agreement. Id.,
para. (g). However, it contends that
presumably China Post Group and its
end users find this type of product
satisfactory since they have a choice of
competitors providing similar services.
Id. Finally, the Postal Service states that
the market for expedited delivery
services is highly competitive, and the
bilateral agreement should not have a
significant impact on small businesses.
Accordingly, the Postal Service states
that it is unaware of any small business
concerns that could offer comparable
service for this customer. Id., para. (h).
It contends that the bilateral agreement
gives China Post Group’s small business
customers another option for shipping
articles to the United States resulting in
a positive impact on small business. Id.
No commenter opposes the proposed
classification of the Agreement as
competitive. Having considered the
statutory requirements and the support
offered by the Postal Service, the
Commission finds that the Agreement 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 the Agreement 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 the new product,
which, as noted below, is designated as
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International Expedited Services 3,
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 International
Expedited Services 3 indicates that it
comports with the provisions applicable
to rates for competitive products.
Other considerations. Inbound
International Expedited Services 1 was
added to the Competitive Product List
in Docket No. CP2008–7. See Order No.
84, supra. That agreement terminated on
July 15, 2009. Request at 3. The Postal
Service seeks to restore the Inbound
International Expedited Services 1
product on the Competitive Product
List. Id. Given that the prior Inbound
International Expedited Services 1
product agreement has ended and the
Postal Service has negotiated a
comparable new agreement with a
different term and rates, the
Commission will designate the
Agreement as Inbound International
Expedited Services 3. The Commission
has followed this practice with other
products which exhibited sufficient
variation from the original agreement to
warrant classification as a new
product.14
The China Post Group agreement
indicates that it becomes effective upon
receipt of all necessary regulatory
approvals. Request at 4. The Postal
Service shall notify the Commission of
the effective dates of the China Post
Group agreement. The agreement states
it is to remain in effect until terminated.
The Postal Service shall inform the
Commission of the termination date.
Conclusion. The Commission
approves International Expedited
Services 3 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. International Expedited Services 3
(MC2010–13 and CP2010–12) is added
to the Competitive Product List as a new
product under Express Mail Inbound
International Expedited Services, as
discussed in this order.
2. The Postal Service shall notify the
Commission upon termination of the
agreement as discussed in this order.
14 See Docket No. CP2009–50, Order Granting
Clarification and Adding Global Expedited Package
Services 2 to the Competitive Product List, August
28, 2009.
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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:
■
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
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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]
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Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Rules and Regulations
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]
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
VerDate Nov<24>2008
14:42 Jan 28, 2010
Jkt 220001
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)
Inbound International Expedited
Services 3 (MC2010–13 and
CP2010–12)
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)
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)
PO 00000
Frm 00015
Fmt 4700
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4697
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)
E:\FR\FM\29JAR1.SGM
29JAR1
cprice-sewell on DSK2BSOYB1PROD with RULES
4698
Federal Register / Vol. 75, No. 19 / Friday, January 29, 2010 / Rules and Regulations
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 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]
VerDate Nov<24>2008
17:30 Jan 28, 2010
Jkt 220001
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. 2010–1804 Filed 1–28–10; 8:45 am]
BILLING CODE 7710–FW–S
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R08–OAR–2009–0198; FRL–9102–7]
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.
SUMMARY: EPA is taking direct final
action approving State Implementation
Plan (SIP) revisions submitted by the
State of Montana on January 16, 2009
and May 4, 2009. The revisions are to
the Administrative Rules of Montana.
Revisions include minor editorial and
grammatical changes, updates to the
citations and references to federal laws
and regulations, and a clarification of
agricultural activities exempt from
control of emissions of airborne
particulate matter. This action is being
taken under section 110 of the Clean Air
Act.
DATES: This rule is effective on March
30, 2010 without further notice, unless
EPA receives adverse comment by
March 1, 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.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R08–
OAR–2009–0198, by one of the
following methods:
• https://www.regulations.gov. Follow
the online 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.
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
• 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–2009–
0198. 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.
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
E:\FR\FM\29JAR1.SGM
29JAR1
]]>Agencies
[Federal Register Volume 75, Number 19 (Friday, January 29, 2010)]
[Rules and Regulations]
[Pages 4693-4698]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1804]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket Nos. MC2010-13 and CP2010-12; Order No. 365]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
[[Page 4694]]
SUMMARY: The Commission is adding Inbound International Expedited
International Services 3 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 January 29, 2010 and is applicable beginning December
22, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel,
202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 65170 (December 9,
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 Inbound
International Expedited Services 1 to the Competitive Product List. For
the reasons discussed below, the Commission approves the Request, but
designates the new product as Inbound International Expedited Services
3.
II. Background
On November 20, 2009, the Postal Service filed a request pursuant
to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq. to add Inbound
International Expedited Services 1 to the Competitive Product List.\1\
The Postal Service asserts that Inbound International Expedited
Services 1 is a competitive product within the meaning of 39 U.S.C.
3632(b)(3).
---------------------------------------------------------------------------
\1\ Request to Add Inbound International Expedited Services 1 to
the Competitive Product List, and Notice of United States Postal
Service of Filing China Post Group-United States Postal Service
Contractual Bilateral Agreement (Under Seal), November 20, 2009
(Request).
---------------------------------------------------------------------------
The Postal Service states that prices and classifications
underlying these rates are supported by Governors' Decision No. 08-
5.\2\ Id. at 1-2. This Request has been assigned Docket No. MC2010-13.
---------------------------------------------------------------------------
\2\ Governors' Decision No. 08-5, April 1, 2008, established
prices for the inbound services offered under Express Mail
International bilateral/multilateral agreements.
---------------------------------------------------------------------------
The Postal Service states that Governors' Decision No. 08-5
establishes the prices for Inbound International Expedited Services 1
and the changes in classification ``not of general applicability''
necessary to implement those prices. Id. at 1.
The Postal Service contemporaneously filed notice, pursuant to 39
U.S.C. 3632(b)(3) and 39 CFR 3015.5, that it has entered into a
contractual bilateral agreement (Agreement) governing bilateral rates
for Express Mail Service (EMS) with China Post Group, the public postal
operator in the People's Republic of China. The Postal Service states
that the supporting financial materials included in this filing
indicate that the inbound EMS rates comply with the requirements of 39
U.S.C. 3633(a). Id. at 2. The rates as established in the bilateral
agreement are assigned Docket No. CP2010-12.
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 redacted version of
Governors' Decision No. 08-5 establishing prices and classifications
for services offered under EMS bilateral/multilateral agreements; Mail
Classification Schedule (MCS) language applicable to Inbound EMS
bilateral/ multilateral agreements; formulas for inbound prices under
EMS bilateral/multilateral agreements; and an analysis of the formulas,
certification of the Governors' vote, and certification of compliance
with 39 U.S.C. 3633(3)(a);\4\ (3) a redacted version of the China Post
Group bilateral agreement;\5\ (4) certification of prices for the
bilateral agreement;\6\ and (5) a Statement of Supporting Justification
as required by 39 CFR 3020.32.\7\
---------------------------------------------------------------------------
\3\ Attachment 1 to the Request.
\4\ Attachment 2 to the Request.
\5\ Attachment 3 to the Request.
\6\ Attachment 4 to the Request.
\7\ Attachment 5 to the Request.
---------------------------------------------------------------------------
On June 1, 2008, the Postal Service filed notice of Governors'
Decision No. 08-5 in Docket Nos. CP2008-6 and CP2008-7.\8\ These
dockets gave notice of a competitive negotiated service agreement with
China Post Group covering EMS prices.\9\ In Order No. 84, the
Commission added the China Post Agreement as a product not of general
applicability to the competitive product list as Inbound International
Expedited Services 1.\10\ The Postal Service states the agreement
became effective on July 15, 2008, and continued in effect until July
14, 2009. Request at 3. The Postal Service entered into a new agreement
with the China Post Group on November 16, 2009. The Postal Service now
requests to restore the Inbound International Expedited Services 1
product to the Competitive Product List. Id.
---------------------------------------------------------------------------
\8\ See Docket Nos. CP2008-6 and CP2008-7, Notice and Order
Concerning Prices Under Express Mail International Bilateral/
Multilateral Agreements, June 3, 2008. The Commission consolidated
Docket No. CP2008-6 with Docket No. CP2008-7 in this Order.
\9\ See Docket No. CP2008-7, Notice of United States Postal
Service of Filing an Agreement for Inbound Express Mail
International (EMS) Prices, May 20, 2008.
\10\ Docket No. CP2008-7, Order Concerning the China Post Group
Inbound EMS Agreement, June 27, 2008 (Order No. 84).
---------------------------------------------------------------------------
The bilateral agreement establishes alternative, negotiated rates
to China Post Group for inbound EMS, instead of the EMS 2 product rates
that would otherwise be applicable.\11\ The Postal Service notes that
the inbound portion of the bilateral agreement fits within the MCS
language included as Attachment A to Governors' Decision No. 08-5. The
agreement becomes effective upon completion of all necessary regulatory
reviews, but in no case earlier than January 1, 2010. The agreement
continues in effect until terminated, which may occur upon 30 days'
notice by either party. The negotiated prices are subject to change
based upon contingencies included in the agreement. Id. at 4. If rates
change, the Postal Service will offer China Post Group EMS rates
reflecting an adjusted rate. Id.
---------------------------------------------------------------------------
\11\ The Postal Service states that in the absence of this
negotiated agreement, EMS rates for calendar year 2010 as reviewed
by the Commission in Docket No. CP2009-57 would apply. Id. at 4. See
Docket No. CP2009-57, Order Concerning Filing of Changes in Rates
for Inbound International Expedited Services 2, August 19, 2009.
---------------------------------------------------------------------------
The Postal Service states that the new agreement is functionally
equivalent to the prior contract reviewed by the Commission except for
different rates that may be applicable to certain flows in the new
agreement. Id. at 5. It notes the instant agreement exhibits the same
cost and market characteristics as the previous agreement. The Postal
Service describes minor changes in the instant agreement which include
changes in standard clauses due to the Commission's confidentiality
rules and other internal issues. Id.
In the Statement of Supporting Justification, Kang Zhang, General
Manager, Business Development, Asia/Pacific, Global Business
Development, asserts that ``[t]he addition of [the Bilateral] Agreement
as a competitive product will enable the Commission to verify that each
contract covers its attributable costs and enables competitive
products, as a whole, to make a positive contribution to coverage of
institutional costs.'' He further states that as a result, ``no issue
of subsidization of competitive products by market dominant products
arises.'' Id., Attachment 5.
[[Page 4695]]
Joseph Moeller, Manager, Regulatory Reporting and Cost Analysis,
Finance Department, certifies that the contract complies with 39 U.S.C.
3633(a). Id., Attachment 4. He asserts that the prices for the China
Post Group bilateral agreement ``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,
including the specific bilateral agreement, under seal. Request at 5.
In its Request, the Postal Service maintains that certain portions of
the contract, the rates, descriptions of the rates, and related
financial information should remain under seal. Id., Attachment 1.
In Order No. 347, the Commission gave notice of the two dockets,
appointed a public representative, and provided the public with an
opportunity to comment.\12\
---------------------------------------------------------------------------
\12\ PRC Order No. 347, Notice and Order Concerning Adding
Inbound International Expedited Services 1 to the Competitive
Product List and China Post Group Bilateral Agreement, November 25,
2009 (Order No. 347).
---------------------------------------------------------------------------
III. Comments
Comments were filed by the Public Representative.\13\ No other
interested person submitted comments. The Public Representative states
that the prices and classifications underlying the rates in the
bilateral agreement are supported by Governor's Decision No. 08-5,
which was originally filed in Docket Nos. CP2008-6 and CP2008-7. Id. at
2. He finds that the agreement appears to be in compliance with 39 CFR
3015.5, 3020.30 and 39 U.S.C. 3632, 3633(a) and 3642. Id.
---------------------------------------------------------------------------
\13\ See Public Representatives Comments in Response to United
States Postal Service Request to Add Inbound International Expedited
Services 1 to the Competitive Product List and China Post Bilateral
Agreement, December 10, 2009 (Public Representative Comments).
---------------------------------------------------------------------------
He states that the Postal Service has provided adequate
justification for maintaining confidentiality in this case. Id. at 2-3.
The Public Representative further states that based on review of the
supporting data, the agreement satisfies the requirements of 39 U.S.C.
3633(a). Id. at 2.
The Public Representative concludes that the bilateral agreement
comports with the provisions of title 39 and offers negotiated pricing,
dispatch methods, and other negotiated provisions favorable both to the
Postal Service and general public. Id. at 3.
IV. Commission Analysis
The Commission has reviewed the agreement, 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 the Agreement to either the Market
Dominant Product List or to the Competitive Product List. 39 U.S.C.
3642. As part of this responsibility, the Commission also reviews the
proposal for compliance with the Postal Accountability and Enhancement
Act (PAEA) requirements. 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 the
Agreement 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 5, para. (d). It also contends that it may not decrease
quality or output without risking the loss of business to large
competitors that offer similar expedited delivery services. Id. The
Postal Service states that the bilateral agreement prices provide
sufficient incentive for China Post Group and its customers to tender
EMS volume to the Postal Service rather than a competitor. The Postal
Service further states that raising its prices could risk losing its
China Post Group volume to a private competitor in the international
shipping industry. Id.
The Postal Service relates that the instant bilateral agreement's
terms relate to the exchange between the Postal Service and China Post
Group for Inbound EMS at negotiated prices which has been classified as
competitive because of its exclusion from the letter monopoly and the
level of competition in the relevant market. Id. It contends that even
if the EMS tendered under the bilateral agreement might contain
``letters'' as defined in postal regulations, the EMS items at issue in
the agreement fall outside the Private Express Statutes because all
prices paid by China Post Group exceed six times the rate for the first
ounce of a First-Class Mail letter. Id., para. (e). Additionally, the
Postal Service contends that many inbound EMS items may be expected to
weigh more than 12.5 ounces. Id.
Finally, the Postal Service states that private consolidators,
freight forwarders, and integrators offer international shipping
services using EMS. It notes that delivery of EMS in the domestic
service area of the United States requires a substantial infrastructure
to support a national network and as a result large carriers serve this
market. Id., para. (f). The Postal Service mentions that it has no
specific data on China Post Group's or its customers' view on the
regulatory classification of this agreement. Id., para. (g). However,
it contends that presumably China Post Group and its end users find
this type of product satisfactory since they have a choice of
competitors providing similar services. Id. Finally, the Postal Service
states that the market for expedited delivery services is highly
competitive, and the bilateral agreement should not have a significant
impact on small businesses. Accordingly, the Postal Service states that
it is unaware of any small business concerns that could offer
comparable service for this customer. Id., para. (h). It contends that
the bilateral agreement gives China Post Group's small business
customers another option for shipping articles to the United States
resulting in a positive impact on small business. Id.
No commenter opposes the proposed classification of the Agreement
as competitive. Having considered the statutory requirements and the
support offered by the Postal Service, the Commission finds that the
Agreement 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 the Agreement 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 the new
product, which, as noted below, is designated as
[[Page 4696]]
International Expedited Services 3, 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 International Expedited Services 3 indicates
that it comports with the provisions applicable to rates for
competitive products.
Other considerations. Inbound International Expedited Services 1
was added to the Competitive Product List in Docket No. CP2008-7. See
Order No. 84, supra. That agreement terminated on July 15, 2009.
Request at 3. The Postal Service seeks to restore the Inbound
International Expedited Services 1 product on the Competitive Product
List. Id. Given that the prior Inbound International Expedited Services
1 product agreement has ended and the Postal Service has negotiated a
comparable new agreement with a different term and rates, the
Commission will designate the Agreement as Inbound International
Expedited Services 3. The Commission has followed this practice with
other products which exhibited sufficient variation from the original
agreement to warrant classification as a new product.\14\
---------------------------------------------------------------------------
\14\ See Docket No. CP2009-50, Order Granting Clarification and
Adding Global Expedited Package Services 2 to the Competitive
Product List, August 28, 2009.
---------------------------------------------------------------------------
The China Post Group agreement indicates that it becomes effective
upon receipt of all necessary regulatory approvals. Request at 4. The
Postal Service shall notify the Commission of the effective dates of
the China Post Group agreement. The agreement states it is to remain in
effect until terminated. The Postal Service shall inform the Commission
of the termination date.
Conclusion. The Commission approves International Expedited
Services 3 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. International Expedited Services 3 (MC2010-13 and CP2010-12) is
added to the Competitive Product List as a new product under Express
Mail Inbound International Expedited Services, as discussed in this
order.
2. The Postal Service shall notify the Commission upon termination
of the agreement as discussed in this order.
3. The Secretary shall arrange for the publication of this order in
the Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure; Postal Service.
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]
[[Page 4697]]
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]
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)
Inbound International Expedited Services 3 (MC2010-13 and CP2010-
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)
[[Page 4698]]
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 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. 2010-1804 Filed 1-28-10; 8:45 am]
BILLING CODE 7710-FW-S
