International Mail Contract, 70850-70852 [2012-28661]

Download as PDF 70850 Federal Register / Vol. 77, No. 228 / Tuesday, November 27, 2012 / Notices performance of operational functions; (2) will not cause unreasonable harm to the marketplace; and (3) will be available on public and reasonable terms to similarly-situated mailers. Id. at 7–8 (citing 39 U.S.C. 3622(c)(10)). The Postal Service asserts that it addresses the first two criteria in its Notice and that the third is inapplicable, as there are no similarly situated mailers. Id. at 8. Functional equivalency. The Postal Service asserts that the Agreement is functionally equivalent to the China Post 2010 Agreement, the TNT Agreement, and the Hongkong Post 2011 Agreement because its terms fit within the proposed Mail Classification Schedule (MCS) language for Inbound Market Dominant Multi-Service Agreements with Foreign Postal Operators 1. Id. It therefore states that the Agreement, along with the referenced agreements, conform to a common description. Id. at 8–9. The Postal Service also asserts that all four agreements are constructed from a similar template; contain many similar terms and conditions; provide rates for Letter Post tendered to the Postal Service from each foreign operator’s territory, along with ancillary services to accompany inbound Letter Post; are with a foreign postal operator; and provide comparable benefits. Id. at 9. It therefore claims that because the agreements incorporate the same attributes and methodology, the relevant characteristics are similar, if not the same. Id. The Postal Service acknowledges the existence of differences that distinguish the Agreement from previous agreements; identifies new and revised elements with specificity; and briefly describes the nature of the changes.4 Id. at 10–12. However, it asserts that the Agreement is nevertheless functionally equivalent to the previously approved agreements referenced in its Notice, and that the differences do not affect either the fundamental service being offered or the fundamental structure of the contracts. Id. at 12. wreier-aviles on DSK5TPTVN1PROD with III. Notice of Proceeding The Commission, in conformance with rule 3010.44, hereby establishes Docket No. R2013–2 to consider issues 4 Affected elements include the first paragraph of the Agreement; Articles 1 and 2; Articles 12, 14, 16, 22 and 23; names of the signatories; and Annexes 1 through 5. Article 2 is a new element addressing Guiding Principles; therefore, successive articles have been renumbered. Changes include, for example, updates to a street address, contact information, Web sites and label samples; revisions to the stated purposes of the Agreement; and rephrasing of indemnification and liability provisions. VerDate Mar<15>2010 15:05 Nov 26, 2012 Jkt 229001 raised by the Notice. The Commission invites public comments on whether the Postal Service’s filing in the captioned docket is consistent with the policies of 39 U.S.C. 3622 and 39 CFR part 3010.40. Comments are due no later than November 29, 2012.5 The public portions of the Postal Service’s filing have been posted on the Commission’s Web site. They can be accessed at https://www.prc.gov. Information on how to obtain access to non-public material is available at 39 CFR 3007.40. The Commission appoints James F. Callow to serve as Public Representative in this docket. IV. Ordering paragraphs It is ordered: 1. The Commission establishes Docket No. R2013–2 to consider matters raised by the Notice of United States Postal Service of Type 2 Rate Adjustment, and Notice of Filing Functionally Equivalent Agreement, filed November 15, 2012. 2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. 3. Comments by interested persons in this proceeding are due no later than November 29, 2012. 4. The Secretary shall arrange for publication of this Order in the Federal Register. By the Commission. Shoshana M. Grove, Secretary. [FR Doc. 2012–28659 Filed 11–26–12; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION [Docket No. R2013–4; Order No.1552] International Mail Contract Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is noticing a recent Postal Service filing concerning a Type 2 rate adjustment in conjunction with a mail contract with the postal operator of the Netherlands. This notice informs the public of the filing, invites public comment, and takes other administrative steps. SUMMARY: 5 To provide sufficient time for interested persons to comment in these proceedings, the Commission finds it appropriate to modify the 10-day comment period specified in 39 CFR 3010.44(a)(5). The modest extension will not prejudice either party to the agreement, given that 45 days’ advance notice is provided in Type 2 rate adjustments. PO 00000 Frm 00114 Fmt 4703 Sfmt 4703 Comments are due: November 29, 2012. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. DATES: FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Notice of Filing III. Notice of Proceeding IV. Ordering Paragraphs I. Introduction Background. On November 15, 2012, the Postal Service filed a notice, pursuant to 39 CFR 3010.40 et seq., announcing a Type 2 rate adjustment in conjunction with a new negotiated service agreement.1 The Notice concerns the inbound portion of a bilateral agreement with Royal PostNL BV (PostNL) (Agreement), which the Postal Service seeks to include within the Inbound Market Dominant MultiService Agreements with Foreign Postal Operators (Docket Nos. MC2010–35, R2010–5 and R2010–6) product. Notice at 1. Rates under the Agreement are intended to take effect January 1, 2013 following expiration of rates in the existing TNT Agreement. Id. at 3. Contract history. The Agreement is a successor to the TNT Agreement, which was added by operation of Order No. 549 in Docket Nos. MC2010–35, R2010– 5, and R2010–6. Both the instant Agreement and the TNT Agreement are with the postal operator of the Netherlands, however, the Postal Service’s contracting partner in the TNT Agreement was TNT Post, a subsidiary of the postal operator for the Netherlands, while the instant Agreement is with PostNL, the current postal operator of the Netherlands. Id. at 10. Applicable rules. 39 CFR 3010 subpart D addresses rate adjustments for negotiated service agreements (Type 2 rate adjustments). The rules in this subpart specify, among other things, the scope and nature of the data, 1 Notice of United States Postal Service of Type 2 Rate Adjustment, and Notice of Filing Functionally Equivalent Agreement, November 15, 2012 (Notice). E:\FR\FM\27NON1.SGM 27NON1 Federal Register / Vol. 77, No. 228 / Tuesday, November 27, 2012 / Notices wreier-aviles on DSK5TPTVN1PROD with information, and explanations the Postal Service is to provide in a notice of Type 2 rate adjustment; the action the Commission is to take upon receipt of such Notice; and the nature of Commission review. See 39 CFR 3010.42 through 3010.44. II. Notice of Filing Compliance with filing requirements. The Postal Service’s filing consists of the Notice, two attachments, and a public Excel file. Attachment 1 is an application for non-public treatment of material filed under seal with the Commission (Application).2 This material consists of the unredacted text of the Agreement and unredacted supporting financial documentation. Id. at 2. Attachment 2 is a redacted copy of the Agreement. The public Excel file is a redacted version of the supporting financial documentation. Id. The Postal Service identifies January 1, 2013 as the effective date; asserts that the requisite 45 days’ advance notice is being provided; and identifies a Postal Service official as a contact for further information. Id. at 3. It identifies the parties to the Agreement as the United States Postal Service and PostNL, the postal operator for the Netherlands. Id. at 4. It states that the Agreement includes inbound Letter Post in the form of letters, flats, small packets, bags, and International Registered Mail service for Letter Post. The Postal Service states that workpapers filed with the Commission under seal provide information about expected financial improvements, costs, volumes, and revenues. Id. It identifies three aspects of the Agreement expected to enhance performance: an anticipated revision to accounting business rules related to changes in settlement; encouragement of incentives for optional activities, such as sortation or separation changes; and identification of suggested Office of Exchange Routing Details and information about the Offices of Exchange for entry of Registered Mail. Id. at 4–5. The Postal Service cites several reasons why the Agreement will not result in unreasonable harm to the marketplace. These include, among others, PostNL’s dominant position in the market for Letter Post originating in its home country; Private Express Statutes (in the United States) that generally prohibit entities other than the Postal Service from carrying inbound international letters commercially after entry at a United States port, at least below certain price and weight 2 The Application was filed pursuant to 39 CFR 3007.21. See Notice at 12. VerDate Mar<15>2010 15:05 Nov 26, 2012 Jkt 229001 thresholds; and the parties’ status as their respective countries’ designated operators for the exchange of mail, including Letter Post, under rules set by the Universal Postal Union. Id. at 5–6. Rule 3010.43—data collection plan. Rule 3010.43 requires the Postal Service to submit a detailed data collection plan. In lieu of a special data collection for the Agreement, the Postal Service states that it intends to provide information via the Annual Compliance Report and, pursuant to this alternative, to provide any necessary information about mail flows from PostNL in the course of the annual review process. Id. at 7. The Postal Service further asks that the Commission except the Agreement from the separate performance reporting requirement under 39 CFR 3055.3(a)(3) on grounds that the Agreement covers ‘‘merely a grouping of other products already being measured.’’ Id. It notes that the Commission has granted such exceptions for similar agreements.3 Consistency with applicable statutory criteria. The Postal Service observes that Commission review of a negotiated service agreement addresses three statutory criteria: whether the agreement (1) improves the Postal Service’s net financial position or enhances the performance of operational functions; (2) will not cause unreasonable harm to the marketplace; and (3) will be available on public and reasonable terms to similarly-situated mailers. Id. at 8 (citing 39 U.S.C. 3622(c)(10)). The Postal Service asserts that it addresses the first two criteria in its Notice and that the third is inapplicable, as there are no entities similarly situated to PostNL in terms of their ability to tender broad-based Letter Post flows from the Netherlands. Id. Functional equivalency. The Postal Service asserts that the Agreement is functionally equivalent to the China Post 2010 Agreement, TNT Agreement, Hongkong Post 2011 Agreement, and China Post 2011 Agreement because its terms fit within the proposed Mail Classification Schedule (MCS) language for Inbound Market Dominant MultiService Agreements with Foreign Postal Operators 1. Id. at 8–9. It therefore asserts that the Agreement and the four other referenced agreements conform to a common description. Id. at 9. The Postal Service also asserts that all five agreements are constructed from a similar template; contain many similar terms and conditions; provide rates for Letter Post tendered to the Postal 3 The Postal Service cites exceptions granted for the China Post 2010 Agreement, the TNT Agreement, the Hongkong Post 2011 Agreement, and the China Post 2011 Agreement. Id. PO 00000 Frm 00115 Fmt 4703 Sfmt 4703 70851 Service from each foreign operator’s territory, along with ancillary services to accompany inbound Letter Post; involve a foreign postal operator; and provide comparable benefits. Id. It therefore claims that because the agreements incorporate the same attributes and methodology, the relevant characteristics are similar, if not the same. Id. The Postal Service acknowledges the existence of differences that distinguish the Agreement from previous agreements; uses the TNT Agreement as a basis for comparison for identifying new and revised elements; and briefly describes the nature of the changes.4 Id. at 9–11. However, it asserts that the Agreement is nevertheless functionally equivalent to the previously-approved agreements, and that the differences do not affect either the fundamental service being offered or the fundamental structure of the contracts. Id. at 11–12. Additional matter—blanket performance reporting exception for future contracts. In addition to seeking an exception from the separate performance reporting requirements in rule 3055.3(a)(3) for this Agreement, the Postal Service also asks that the Commission approve a blanket exception for such reporting for all contracts added to the MCS as Inbound Market-Dominant Multi-Service Agreements with Foreign Postal Operators on grounds that the performance of the products covered by those agreements is already included in the measurement of other products. Id. at 12. III. Notice of Proceeding The Commission, in conformance with rule 3010.44, hereby establishes Docket No. R2013–4 to consider issues raised by the Notice. The Commission invites public comments on whether the Postal Service’s filing in the captioned docket is consistent with the policies of 39 U.S.C. 3622 and 39 CFR part 3010.40. The Commission also invites comments on the Postal Service’s request for a blanket exception from performance reporting requirements in 39 CFR 3055.3(a)(3) for all future contracts added to the Inbound Market-Dominant Multi-Service Agreements with Foreign Postal Operators 1 (Docket Nos. 4 In addition to the difference in the identity of the Postal Service’s contracting partner in this Agreement, affected elements of the Agreement include Articles 1, 3, 8 through 10, 12, 14, and 22 through 24; the signatories; and Annexes 1 through 3. Changes include, for example, inclusion of addresses for the Postal Service and PostNL; the period the Agreement will remain in effect; and rates. Article 8 is new. Subsequent articles have been renumbered. E:\FR\FM\27NON1.SGM 27NON1 70852 Federal Register / Vol. 77, No. 228 / Tuesday, November 27, 2012 / Notices MC2010–35, R2010–5, and R2010–6) product. Comments are due no later than November 29, 2012.5 The public portions of the Postal Service’s filing have been posted on the Commission’s Web site. They can be accessed at https://www.prc.gov. Information on how to obtain access to non-public material is available at 39 CFR 3007.40. The Commission appoints James F. Callow to serve as Public Representative in this docket. IV. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. R2013–4 to consider matters raised by the Notice of United States Postal Service of Type 2 Rate Adjustment, and Notice of Filing Functionally Equivalent Agreement, filed November 15, 2012. 2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. 3. Comments by interested persons in this proceeding are due no later than November 29, 2012. 4. The Secretary shall arrange for publication of this Order in the Federal Register. By the Commission. Shoshana M. Grove, Secretary. [FR Doc. 2012–28661 Filed 11–26–12; 8:45 am] BILLING CODE 7710–FW–P POSTAL REGULATORY COMMISSION [Docket No. R2013–3; Order No.1551] International Mail Contract Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is noticing a recent Postal Service filing concerning a Type 2 rate adjustment in conjunction with a mail contract with Hongkong Post. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: November 29, 2012. ADDRESSES: Submit comments electronically via the Commission’s wreier-aviles on DSK5TPTVN1PROD with SUMMARY: 5 To provide sufficient time for interested persons to comment in these proceedings, the Commission finds it appropriate to modify the 10-day comment period specified in 39 CFR 3010.44(a)(5). The modest extension will not prejudice either party to the agreement, given that 45 days’ advance notice is provided in Type 2 rate adjustments. VerDate Mar<15>2010 15:05 Nov 26, 2012 Jkt 229001 II. Notice of Filing Compliance with filing requirements. The Postal Service’s filing consists of the Notice, two attachments, and a public Excel file. Attachment 1 to the Notice is an application for non-public treatment of material filed under seal with the Commission (Application).2 FOR FURTHER INFORMATION CONTACT: This material consists of the unredacted Stephen L. Sharfman, General Counsel, text of the Agreement and unredacted at 202–789–6820. supporting financial documentation. Id. SUPPLEMENTARY INFORMATION: at 2. Attachment 2 is a redacted copy of the Agreement. The public Excel file is Table of Contents a redacted version of the supporting I. Introduction financial documentation. Id. II. Notice of Filing The Postal Service identifies January III. Ordering Paragraphs 1, 2013 as the effective date; asserts that the requisite 45 days’ advance notice is I. Introduction being provided; and identifies a Postal Background. On November 15, 2012, Service official as a contact for further the Postal Service filed a notice, information. Id. at 3. It identifies the pursuant to 39 CFR 3010.40 et seq., parties to the Agreement as the United announcing a Type 2 rate adjustment in States Postal Service and Hongkong conjunction with a new negotiated Post, the postal operator for Hongkong. service agreement.1 The Notice concerns Id. at 4. It states that the Agreement the inbound portion of a bilateral includes inbound Letter Post, including agreement with Hongkong Post letters, flats, small packets, bags and (Agreement), which the Postal Service International Registered Mail service for seeks to include within the existing Letter Post. Id. It also includes an Inbound Market Dominant Multiancillary service for delivery Service Agreements with Foreign Postal confirmation scanning for Letter Post Operators 1 product. Notice at 1. small packets.3 The Postal Service states that Contract history and scope. The Agreement is a successor to the existing information about expected financial improvements, costs, volumes, and Hongkong Post 2012 Agreement, which revenues in financial workpapers has was included within Inbound Market been filed with the Commission under Dominant Multi-Service Agreement seal. Id. It identifies two components of with Foreign Postal Operators 1 by the Agreement that are expected to operation of Order No. 1058. Id. at 2. Rates under the Agreement are intended enhance operational performance: continuation of delivery confirmation to take effect January 1, 2013 following service for Letter Post small packets; expiration, on December 31, 2012, of and simplification of the display of rates now in effect under the Hongkong Letter Post mailstreams. Id. at 5. Post 2012 Agreement. Id. at 3. The The Postal Service presents several Agreement pertains only to inbound market dominant rates; rates paid by the reasons why the instant Agreement will not result in unreasonable harm to the Postal Service to Hongkong Post for marketplace, including Hongkong Post’s outbound delivery of Postal Service status as the only entity in a position to products in Hong Kong are not avail itself of an agreement of this type included. Id. at 6. and the role of the Postal Service and Applicable rules. 39 CFR 3010 subpart Hongkong Post as their countries’ D addresses rate adjustments for designated operators for exchange of negotiated service agreements (Type 2 mail. Id. at 5–6. rate adjustments). The rules in this Rule 3010.43—data collection plan. subpart specify, among other things, the Rule 3010.43 requires the Postal Service scope and nature of the data, to submit a detailed data collection information, and explanations the Postal plan. In lieu of a special data collection Service is to provide in a notice of Type for the Agreement, the Postal Service 2 rate adjustment; the action the states that it intends to provide Commission is to take upon receipt of information via the Annual Compliance such Notice; and the nature of Report and, pursuant to this alternative, Commission review. See 39 CFR 3010.42 through 3010.44. 2 The Application was filed pursuant to 39 CFR Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. 1 Notice of United States Postal Service of Type 2 Rate Adjustment, and Notice of Filing Functionally Equivalent Agreement, November 15, 2012 (Notice). PO 00000 Frm 00116 Fmt 4703 Sfmt 4703 3007.21. See Notice at 12. 3 The ancillary service included in the Agreement was also included in the China Post 2010 Agreement, the Hongkong Post 2011 Agreement, and the China Post 2011 Agreement. Id. E:\FR\FM\27NON1.SGM 27NON1

Agencies

[Federal Register Volume 77, Number 228 (Tuesday, November 27, 2012)]
[Notices]
[Pages 70850-70852]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28661]


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

POSTAL REGULATORY COMMISSION

[Docket No. R2013-4; Order No.1552]


International Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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

SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning a Type 2 rate adjustment in conjunction with a mail contract 
with the postal operator of the Netherlands. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: November 29, 2012.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Notice of Filing
III. Notice of Proceeding
IV. Ordering Paragraphs

I. Introduction

    Background. On November 15, 2012, the Postal Service filed a 
notice, pursuant to 39 CFR 3010.40 et seq., announcing a Type 2 rate 
adjustment in conjunction with a new negotiated service agreement.\1\ 
The Notice concerns the inbound portion of a bilateral agreement with 
Royal PostNL BV (PostNL) (Agreement), which the Postal Service seeks to 
include within the Inbound Market Dominant Multi-Service Agreements 
with Foreign Postal Operators (Docket Nos. MC2010-35, R2010-5 and 
R2010-6) product. Notice at 1.
---------------------------------------------------------------------------

    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
November 15, 2012 (Notice).
---------------------------------------------------------------------------

    Rates under the Agreement are intended to take effect January 1, 
2013 following expiration of rates in the existing TNT Agreement. Id. 
at 3.
    Contract history. The Agreement is a successor to the TNT 
Agreement, which was added by operation of Order No. 549 in Docket Nos. 
MC2010-35, R2010-5, and R2010-6. Both the instant Agreement and the TNT 
Agreement are with the postal operator of the Netherlands, however, the 
Postal Service's contracting partner in the TNT Agreement was TNT Post, 
a subsidiary of the postal operator for the Netherlands, while the 
instant Agreement is with PostNL, the current postal operator of the 
Netherlands. Id. at 10.
    Applicable rules. 39 CFR 3010 subpart D addresses rate adjustments 
for negotiated service agreements (Type 2 rate adjustments). The rules 
in this subpart specify, among other things, the scope and nature of 
the data,

[[Page 70851]]

information, and explanations the Postal Service is to provide in a 
notice of Type 2 rate adjustment; the action the Commission is to take 
upon receipt of such Notice; and the nature of Commission review. See 
39 CFR 3010.42 through 3010.44.

II. Notice of Filing

    Compliance with filing requirements. The Postal Service's filing 
consists of the Notice, two attachments, and a public Excel file. 
Attachment 1 is an application for non-public treatment of material 
filed under seal with the Commission (Application).\2\ This material 
consists of the unredacted text of the Agreement and unredacted 
supporting financial documentation. Id. at 2. Attachment 2 is a 
redacted copy of the Agreement. The public Excel file is a redacted 
version of the supporting financial documentation. Id.
---------------------------------------------------------------------------

    \2\ The Application was filed pursuant to 39 CFR 3007.21. See 
Notice at 12.
---------------------------------------------------------------------------

    The Postal Service identifies January 1, 2013 as the effective 
date; asserts that the requisite 45 days' advance notice is being 
provided; and identifies a Postal Service official as a contact for 
further information. Id. at 3. It identifies the parties to the 
Agreement as the United States Postal Service and PostNL, the postal 
operator for the Netherlands. Id. at 4. It states that the Agreement 
includes inbound Letter Post in the form of letters, flats, small 
packets, bags, and International Registered Mail service for Letter 
Post.
    The Postal Service states that workpapers filed with the Commission 
under seal provide information about expected financial improvements, 
costs, volumes, and revenues. Id. It identifies three aspects of the 
Agreement expected to enhance performance: an anticipated revision to 
accounting business rules related to changes in settlement; 
encouragement of incentives for optional activities, such as sortation 
or separation changes; and identification of suggested Office of 
Exchange Routing Details and information about the Offices of Exchange 
for entry of Registered Mail. Id. at 4-5.
    The Postal Service cites several reasons why the Agreement will not 
result in unreasonable harm to the marketplace. These include, among 
others, PostNL's dominant position in the market for Letter Post 
originating in its home country; Private Express Statutes (in the 
United States) that generally prohibit entities other than the Postal 
Service from carrying inbound international letters commercially after 
entry at a United States port, at least below certain price and weight 
thresholds; and the parties' status as their respective countries' 
designated operators for the exchange of mail, including Letter Post, 
under rules set by the Universal Postal Union. Id. at 5-6.
    Rule 3010.43--data collection plan. Rule 3010.43 requires the 
Postal Service to submit a detailed data collection plan. In lieu of a 
special data collection for the Agreement, the Postal Service states 
that it intends to provide information via the Annual Compliance Report 
and, pursuant to this alternative, to provide any necessary information 
about mail flows from PostNL in the course of the annual review 
process. Id. at 7. The Postal Service further asks that the Commission 
except the Agreement from the separate performance reporting 
requirement under 39 CFR 3055.3(a)(3) on grounds that the Agreement 
covers ``merely a grouping of other products already being measured.'' 
Id. It notes that the Commission has granted such exceptions for 
similar agreements.\3\
---------------------------------------------------------------------------

    \3\ The Postal Service cites exceptions granted for the China 
Post 2010 Agreement, the TNT Agreement, the Hongkong Post 2011 
Agreement, and the China Post 2011 Agreement. Id.
---------------------------------------------------------------------------

    Consistency with applicable statutory criteria. The Postal Service 
observes that Commission review of a negotiated service agreement 
addresses three statutory criteria: whether the agreement (1) improves 
the Postal Service's net financial position or enhances the performance 
of operational functions; (2) will not cause unreasonable harm to the 
marketplace; and (3) will be available on public and reasonable terms 
to similarly-situated mailers. Id. at 8 (citing 39 U.S.C. 3622(c)(10)). 
The Postal Service asserts that it addresses the first two criteria in 
its Notice and that the third is inapplicable, as there are no entities 
similarly situated to PostNL in terms of their ability to tender broad-
based Letter Post flows from the Netherlands. Id.
    Functional equivalency. The Postal Service asserts that the 
Agreement is functionally equivalent to the China Post 2010 Agreement, 
TNT Agreement, Hongkong Post 2011 Agreement, and China Post 2011 
Agreement because its terms fit within the proposed Mail Classification 
Schedule (MCS) language for Inbound Market Dominant Multi-Service 
Agreements with Foreign Postal Operators 1. Id. at 8-9. It therefore 
asserts that the Agreement and the four other referenced agreements 
conform to a common description. Id. at 9. The Postal Service also 
asserts that all five agreements are constructed from a similar 
template; contain many similar terms and conditions; provide rates for 
Letter Post tendered to the Postal Service from each foreign operator's 
territory, along with ancillary services to accompany inbound Letter 
Post; involve a foreign postal operator; and provide comparable 
benefits. Id. It therefore claims that because the agreements 
incorporate the same attributes and methodology, the relevant 
characteristics are similar, if not the same. Id.
    The Postal Service acknowledges the existence of differences that 
distinguish the Agreement from previous agreements; uses the TNT 
Agreement as a basis for comparison for identifying new and revised 
elements; and briefly describes the nature of the changes.\4\ Id. at 9-
11. However, it asserts that the Agreement is nevertheless functionally 
equivalent to the previously-approved agreements, and that the 
differences do not affect either the fundamental service being offered 
or the fundamental structure of the contracts. Id. at 11-12.
---------------------------------------------------------------------------

    \4\ In addition to the difference in the identity of the Postal 
Service's contracting partner in this Agreement, affected elements 
of the Agreement include Articles 1, 3, 8 through 10, 12, 14, and 22 
through 24; the signatories; and Annexes 1 through 3. Changes 
include, for example, inclusion of addresses for the Postal Service 
and PostNL; the period the Agreement will remain in effect; and 
rates. Article 8 is new. Subsequent articles have been renumbered.
---------------------------------------------------------------------------

    Additional matter--blanket performance reporting exception for 
future contracts. In addition to seeking an exception from the separate 
performance reporting requirements in rule 3055.3(a)(3) for this 
Agreement, the Postal Service also asks that the Commission approve a 
blanket exception for such reporting for all contracts added to the MCS 
as Inbound Market-Dominant Multi-Service Agreements with Foreign Postal 
Operators on grounds that the performance of the products covered by 
those agreements is already included in the measurement of other 
products. Id. at 12.

III. Notice of Proceeding

    The Commission, in conformance with rule 3010.44, hereby 
establishes Docket No. R2013-4 to consider issues raised by the Notice. 
The Commission invites public comments on whether the Postal Service's 
filing in the captioned docket is consistent with the policies of 39 
U.S.C. 3622 and 39 CFR part 3010.40. The Commission also invites 
comments on the Postal Service's request for a blanket exception from 
performance reporting requirements in 39 CFR 3055.3(a)(3) for all 
future contracts added to the Inbound Market-Dominant Multi-Service 
Agreements with Foreign Postal Operators 1 (Docket Nos.

[[Page 70852]]

MC2010-35, R2010-5, and R2010-6) product.
    Comments are due no later than November 29, 2012.\5\
---------------------------------------------------------------------------

    \5\ To provide sufficient time for interested persons to comment 
in these proceedings, the Commission finds it appropriate to modify 
the 10-day comment period specified in 39 CFR 3010.44(a)(5). The 
modest extension will not prejudice either party to the agreement, 
given that 45 days' advance notice is provided in Type 2 rate 
adjustments.
---------------------------------------------------------------------------

    The public portions of the Postal Service's filing have been posted 
on the Commission's Web site. They can be accessed at https://www.prc.gov. Information on how to obtain access to non-public material 
is available at 39 CFR 3007.40.
    The Commission appoints James F. Callow to serve as Public 
Representative in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2013-4 to consider 
matters raised by the Notice of United States Postal Service of Type 2 
Rate Adjustment, and Notice of Filing Functionally Equivalent 
Agreement, filed November 15, 2012.
    2. Pursuant to 39 U.S.C. 505, James F. Callow is appointed to serve 
as an officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    3. Comments by interested persons in this proceeding are due no 
later than November 29, 2012.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2012-28661 Filed 11-26-12; 8:45 am]
BILLING CODE 7710-FW-P
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