Mail Classification Schedule, 27468-27470 [2024-08162]
Download as PDF
27468
Federal Register / Vol. 89, No. 75 / Wednesday, April 17, 2024 / Notices
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024–08163 Filed 4–16–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL REGULATORY COMMISSION
[Docket Nos. MC2024–229 and CP2024–235]
New Postal Products
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is noticing a
recent Postal Service filing for the
Commission’s consideration concerning
a negotiated service agreement. This
notice informs the public of the filing,
invites public comment, and takes other
administrative steps.
DATES: Comments are due: April 19,
2024.
SUMMARY:
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.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Docketed Proceeding(s)
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The Commission gives notice that the
Postal Service filed request(s) for the
Commission to consider matters related
to negotiated service agreement(s). The
request(s) may propose the addition or
removal of a negotiated service
agreement from the Market Dominant or
the Competitive product list, or the
modification of an existing product
currently appearing on the Market
Dominant or the Competitive product
list.
Section II identifies the docket
number(s) associated with each Postal
Service request, the title of each Postal
Service request, the request’s acceptance
date, and the authority cited by the
Postal Service for each request. For each
request, the Commission appoints an
officer of the Commission to represent
the interests of the general public in the
17:10 Apr 16, 2024
II. Docketed Proceeding(s)
1. Docket No(s).: MC2024–229 and
CP2024–235; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 217 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: April 11, 2024; Filing Authority:
39 U.S.C. 3642, 39 CFR 3040.130
through 3040.135, and 39 CFR 3035.105;
Public Representative: Arif Hafiz;
Comments Due: April 19, 2024.
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
I. Introduction
VerDate Sep<11>2014
proceeding, pursuant to 39 U.S.C. 505
(Public Representative). Section II also
establishes comment deadline(s)
pertaining to each request.
The public portions of the Postal
Service’s request(s) can be accessed via
the Commission’s website (https://
www.prc.gov). Non-public portions of
the Postal Service’s request(s), if any,
can be accessed through compliance
with the requirements of 39 CFR
3011.301.1
The Commission invites comments on
whether the Postal Service’s request(s)
in the captioned docket(s) are consistent
with the policies of title 39. For
request(s) that the Postal Service states
concern Market Dominant product(s),
applicable statutory and regulatory
requirements include 39 U.S.C. 3622, 39
U.S.C. 3642, 39 CFR part 3030, and 39
CFR part 3040, subpart B. For request(s)
that the Postal Service states concern
Competitive product(s), applicable
statutory and regulatory requirements
include 39 U.S.C. 3632, 39 U.S.C. 3633,
39 U.S.C. 3642, 39 CFR part 3035, and
39 CFR part 3040, subpart B. Comment
deadline(s) for each request appear in
section II.
Jkt 262001
[FR Doc. 2024–08197 Filed 4–16–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL REGULATORY COMMISSION
[Docket No. MC2024–224; Order No. 7041]
Mail Classification Schedule
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is
acknowledging a recent Postal Service
filing concerning size limitation changes
to the Mail Classification Schedule
related to international letter-post rolls
SUMMARY:
1 See Docket No. RM2018–3, Order Adopting
Final Rules Relating to Non-Public Information,
June 27, 2018, Attachment A at 19–22 (Order No.
4679).
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Frm 00063
Fmt 4703
Sfmt 4703
and accompanying material changes to
product descriptions for certain other
products that include international
letter-post rolls. This document informs
the public of the filing, invites public
comment, and takes other
administrative steps.
DATES: Comments are due: May 9, 2024.
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:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs
I. Introduction
On April 9, 2024, pursuant to 39
U.S.C. 3682 and 39 CFR 3040.212 and
3040.180, the Postal Service filed a
notice of proposed changes in the Mail
Classification Schedule (MCS)
concerning the size limitations for
international letter-post rolls for certain
products with rates of general
applicability, as well as accompanying
material changes to product
descriptions for certain other products
that include international letter-post
rolls, effective July 14, 2024.1
II. Contents of Filing
Specifically, the Postal Service
proposes changes in the minimum size
limits for international letter-post rolls
for the following products with rates of
general applicability in relevant MCS
sections:
• 2320.2 International Priority Airmail
(IPA)
• 2325.2 International Surface Air Lift
(ISAL)
• 2335.2 Outbound Single-Piece FirstClass Package International Service
(FCPIS)
Id. at 1.
In addition, the Postal Service
proposes material changes to product
descriptions for the following products
with rates not of general applicability
1 Notice of the United States Postal Service of
Changes in Size Limitations and Accompanying
Material Changes to Product Descriptions
Concerning the Minimum Size Limits for
International Letter-Post Rolls, and Notice of Filing
Materials Under Seal, April 9, 2024, at 1–2 (Notice).
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17APN1
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Federal Register / Vol. 89, No. 75 / Wednesday, April 17, 2024 / Notices
that include international letter-post
rolls in relevant MCS sections:
• 2340.2 Inbound Letter Post Small
Packets and Bulky Letters
• 2510.3.2 Global Expedited Package
Service (GEPS) Contracts
• 2510.5.2 Global Bulk Economy (GBE)
Contracts
• 2510.6.2 Global Plus Contracts
• 2510.7.2 Global Reseller Expedited
Package Contracts
• 2510.8.2 Global Expedited Package
Services (GEPS)—Non-Published
Rates
Id. at 2.
The Postal Service states that the
Notice satisfies the requirements set
forth in 39 U.S.C. 3682 and 39 CFR
3040.212 and 3040.180. See id. at 2–3.
First, the Notice is filed at least 30 days
prior to the intended effective date of
July 14, 2024, in accordance with 39
CFR 3040.180(a). Id. at 3. Second, the
Postal Service submits Attachment 1
with the Notice, which contains the
proposed material changes to the MCS
sections listed above in legislative
format, in accordance with 39 CFR
3040.180(b)(1). Id. Third, the Postal
Service provides the following
supporting justification in accordance
with 39 CFR 3040.180(b)(2). See id. at
3–7.
As rationale for the proposed changes,
the Postal Service states that the
proposed changes would result in the
MCS more accurately reflecting the
Postal Service’s current offerings by
aligning the MCS with Universal Postal
Union (UPU) Conventions Regulations
Article 17–104. Id. at 3. The Postal
Service explains that in May 2023, the
UPU Postal Operations Council adopted
new minimum dimensions for
international letter-post rolls, and the
amended UPU Conventions Regulations
Article 17–104 will be effective August
1, 2024. Id. at 3–4. The new minimum
length will be 8.25 inches instead of 4
inches, and the new minimum length
plus twice the diameter will be 12
inches instead of 6.75 inches. Id. at 4.
The Postal Service submits Attachment
2 with the Notice, which contains
Governors’ Decision No. 24–1 that
establishes the revisions to the
minimum size limitations for
international letter-post rolls for
products with rates of general
applicability and includes a statement
of explanation and justification for the
proposed changes. Id. at 4, Attachment
2. The Postal Service also submits
Attachment 3 with the Notice, which
contains Governors’ Decision No. 19–1
that authorizes Postal Service
management to propose material
changes to product descriptions for
VerDate Sep<11>2014
17:10 Apr 16, 2024
Jkt 262001
products with rates not of general
applicability. Id. at 4–5, Attachment 3.
The Postal Service submits Attachment
4, which is an application for nonpublic treatment of Governors’ Decision
No. 19–1. Notice at 5, Attachment 4.
The Postal Service states that
although its proposed changes will go
into effect a few days before the
effective date of the amended UPU
Convention Regulations, it does not
anticipate this will pose significant
operational issues. Notice at 5. In
addition, the Postal Service states that
allowing the changes proposed in this
Notice together with other proposed
classification changes in other dockets 2
to take effect on the same day (July 14,
2024) promotes efficiency in changing
information technology systems. Id. at 2,
5 n.4.
The Postal Service states that the
proposed changes would not result in
the violation of any provisions of 39
U.S.C. 3633 and 39 CFR part 3035. The
Postal Service explains that changes to
size limitations for international letterpost rolls for IPA, ISAL, and FCPIS,
which are changes in classes of general
applicability, are in accordance with 39
CFR 3035.104(a) and (b), because the
Notice is filed at least 30 days before the
effective date of the changes and the
Notice includes an explanation and
justification for the changes, the
effective date, and the record of
proceedings regarding such decision. Id.
at 5. In addition, the Postal Service
states that the changes to size
limitations for international letter-post
rolls for IPA, ISAL, and FCPIS are not
expected to significantly affect the
ability of IPA, ISAL, and FCPIS
products to cover an appropriate share
of their costs, because international
letter-post rolls represent only a subset
of the revenue for these products and
because these changes are not expected
to materially affect revenue for these
products in any event. Id. at 6. The
Postal Service states that it does not
separately identify international letterpost rolls, therefore data relating to the
cost coverage impact of these changes
on IPA, ISAL, and FCPIS are not
available. Id. As a result, the Postal
Service is not able to calculate the exact
impact of these changes, and does not
submit supporting financial workpapers
usually included in Competitive price
changes for products with rates of
general applicability. Id.3 Nevertheless,
2 Docket No. CP2024–230, United States Postal
Service Notice of Changes in Classifications of
General Applicability for Competitive Products,
April 9, 2024.
3 The Postal Service acknowledges that ISAL did
not cover its costs in FY 2023. Id. at 6 n.5 (citing
Docket No. ACR2023, United States Postal Service,
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27469
in its professional judgment, the Postal
Service does not believe these changes
will have a significant impact on the
cost coverage of IPA, ISAL, and FCPIS.
Notice at 6. Furthermore, the Postal
Service states that the same conclusion
also applies to the changes to the
products with rates not of general
applicability that include international
letter-post rolls. Id. at 6–7. Finally, the
Postal Service states that the proposed
changes in the Notice would not impair
the ability of Competitive products to
collectively cover an appropriate share
of the institutional costs, because the
effect of the proposed changes on
revenue is likely to be small in relation
to total Competitive product revenue.
Id. at 7.
With regard to the likely impact that
the proposed changes would have on
users of the product and on competitors,
the Postal Service states that the
proposed changes may result in fewer
items being entered as international
letter-post rolls due to the increased
minimum dimensions, thereby causing
some volume to either migrate to larger
dimensions or be sent through
competitors. Id.
III. Commission Action
The Commission establishes Docket
No. MC2024–224 for consideration of
matters raised by the Notice.
The Commission invites comments on
whether the Postal Service’s filing is
consistent with 39 U.S.C. 3633 and 3682
and 39 CFR 3040.212, 3040.180, and
part 3035. Comments are due no later
than May 9, 2024. The public portions
of the filings can be accessed via the
Commission’s website (https://
www.prc.gov).
Annual Compliance Report, December 29, 2023, at
100–01). However, the Postal Service explains that
this was largely because of accounting adjustments
that are the result of settlement processes
established with a particular foreign post for prior
calendar years. Notice at 6 n.5 (citing Docket No.
ACR2023, Responses of the United States Postal
Service to Questions 1–26, 28–57, 61 of Chairman’s
Information Request No. 2, January 19, 2024,
questions 29.a.–29.b. (Docket No. ACR2023,
Response to CHIR No. 2)). The Postal Service does
not anticipate such large accounting adjustments in
future years. Notice at 6 n.5 (citing Docket No.
ACR2023, Response to CHIR No. 2, question 29.e.).
The Commission recognizes that ISAL has generally
covered its attributable cost in prior years, and its
failure to cover cost in FY 2023 appears to be a
unique occurrence that resulted from the large,
unexpected accounting adjustments. Notice at 6 n.5
(citing Docket No. ACR2023, Annual Compliance
Determination, March 28, 2024, at 68 (FY 2023
ACD)). The Commission encourages the Postal
Service to monitor the impact of the price increase
for ISAL that took effect in January 2024 and to
request further price increases as necessary based
on its continued assessment of the product’s
projected cost coverage. Notice at 6 n.5 (citing FY
2023 ACD at 68). The Postal Service states that it
will address any cost coverage issues relating to
ISAL in future dockets. Notice at 6 n.5.
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27470
Federal Register / Vol. 89, No. 75 / Wednesday, April 17, 2024 / Notices
The Commission appoints Mallory L.
Smith to represent the interests of the
general public (Public Representative)
in this docket, pursuant to 39 U.S.C.
505.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket
No. MC2024–224 for consideration of
matters raised by the Postal Service’s
Notice.
2. Pursuant to 39 U.S.C. 505, Mallory
L. Smith 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 are due no later than
May 9, 2024.
4. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024–08162 Filed 4–16–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Change in Classes of General
Applicability for Competitive Products
AGENCY:
Postal ServiceTM.
Notice of a change in classes of
general applicability for competitive
products.
ACTION:
This notice sets forth changes
in classes of general applicability for
competitive products.
SUMMARY:
DATES:
Applicable date: July 14, 2024.
FOR FURTHER INFORMATION CONTACT:
Christopher C. Meyerson, 202–268–
7820.
On
February 8, 2024, pursuant to their
authority under 39 U.S.C. 3632 and
3682, the Governors of the Postal
Service established classification
changes for minimum size limitations
for international letter-post rolls in the
Mail Classification Schedule. The
Governors’ Decision and the record of
proceedings in connection with such
lotter on DSK11XQN23PROD with NOTICES1
SUPPLEMENTARY INFORMATION:
VerDate Sep<11>2014
17:10 Apr 16, 2024
Jkt 262001
decision are reprinted below in
accordance with section 3632(b)(2).
SECURITIES AND EXCHANGE
COMMISSION
Sarah Sullivan,
Attorney, Ethics and Legal Compliance.
[SEC File No. 270–563, OMB Control No.
3235–0626]
Decision of the Governors of the United
States Postal Service on Mail Classification
Schedule Changes to Size Limitations for
International Letter-Post Rolls (Governors’
Decision No. 24–1)
Submission for OMB Review;
Comment Request
February 8, 2024
Statement of Explanation and Justification
Pursuant to our authority under section
404(b) and Chapter 36 of title 39, United
States Code, the Governors establish
classification changes to the minimum size
limitations for international letter-post rolls.
The Universal Postal Union (UPU)
Convention Regulations will be establishing
new dimensions for international letter-post
rolls (a certain format for outbound and
inbound letter-post items). To conform with
these dimension requirements, the Postal
Service must revise the minimum size
limitations for international letter-post rolls
in the Mail Classification Schedule, for
products with rates of general applicability.
We have evaluated the classification changes
in this context in accordance with 39 U.S.C.
3632 and 3682. We approve the changes,
finding that they are appropriate, and are
consistent with the regulatory criteria.
Upon Written Request Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 17g–3—Annual financial and other
reports to be filed or furnished by
nationally recognized statistical rating
organizations.
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
summarized below. The Commission
plans to submit an extension for this
current collection of information to the
Office of Management and Budget for
approval.
Rule 17g–3 (17 CFR 240.17g–3) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) contains certain
reporting requirements for nationally
recognized statistical rating
Order
organizations (‘‘NRSROs’’). Specifically,
We direct management to file with the
NRSROs are required to file with the
Postal Regulatory Commission appropriate
Commission, on an annual basis,
notice of these classification changes. The
financial reports containing specified
changes in classification set forth herein shall
financial statements, certain financial
become effective on July 14, 2024.
condition reports, and a report on the
By The Governors:
internal control structure. NRSROs are
/s/
also required to furnish a report of the
lllllllllllllllllllll number of credit rating actions taken
Roman Martinez IV,
during the most recently completed
fiscal year.
Chairman, Board of Governors.
Currently, there are 10 credit rating
United States Postal Service Office of the
agencies registered as NRSROs with the
Board of Governors
Commission. Based on staff experience,
Certification of Governors’ Vote on
the Commission estimates that the total
Governors’ Decision No. 24–1
burden for NRSROs to comply with
Consistent with 39 U.S.C. 3632(a), I hereby Rule 17g–3 is 3,650 hours. In addition,
the Commission estimates an industrycertify that, on February 8, 2024, the
wide annual external cost to NRSROs of
Governors voted on adopting Governors’
$350,000 to comply with Rule 17g–3,
Decision No. 24–1, and that a majority of the
reflecting costs to engage the services of
Governors then holding office voted in favor
independent public accountants and
of that Decision.
outside counsel.
February 8. 2024.
The public may view background
/s/
documentation
for this information
lllllllllllllllllllll
collection at the following website:
Michael J. Elston,
www.reginfo.gov. Find this particular
Secretary of the Board of Governors.
information collection by selecting
‘‘Currently under 30-day Review—Open
[FR Doc. 2024–08169 Filed 4–16–24; 8:45 am]
for Public Comments’’ or by using the
BILLING CODE 7710–12–P
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
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Agencies
[Federal Register Volume 89, Number 75 (Wednesday, April 17, 2024)]
[Notices]
[Pages 27468-27470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08162]
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. MC2024-224; Order No. 7041]
Mail Classification Schedule
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is acknowledging a recent Postal Service filing
concerning size limitation changes to the Mail Classification Schedule
related to international letter-post rolls and accompanying material
changes to product descriptions for certain other products that include
international letter-post rolls. This document informs the public of
the filing, invites public comment, and takes other administrative
steps.
DATES: Comments are due: May 9, 2024.
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: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs
I. Introduction
On April 9, 2024, pursuant to 39 U.S.C. 3682 and 39 CFR 3040.212
and 3040.180, the Postal Service filed a notice of proposed changes in
the Mail Classification Schedule (MCS) concerning the size limitations
for international letter-post rolls for certain products with rates of
general applicability, as well as accompanying material changes to
product descriptions for certain other products that include
international letter-post rolls, effective July 14, 2024.\1\
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\1\ Notice of the United States Postal Service of Changes in
Size Limitations and Accompanying Material Changes to Product
Descriptions Concerning the Minimum Size Limits for International
Letter-Post Rolls, and Notice of Filing Materials Under Seal, April
9, 2024, at 1-2 (Notice).
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II. Contents of Filing
Specifically, the Postal Service proposes changes in the minimum
size limits for international letter-post rolls for the following
products with rates of general applicability in relevant MCS sections:
2320.2 International Priority Airmail (IPA)
2325.2 International Surface Air Lift (ISAL)
2335.2 Outbound Single-Piece First-Class Package International
Service (FCPIS)
Id. at 1.
In addition, the Postal Service proposes material changes to
product descriptions for the following products with rates not of
general applicability
[[Page 27469]]
that include international letter-post rolls in relevant MCS sections:
2340.2 Inbound Letter Post Small Packets and Bulky Letters
2510.3.2 Global Expedited Package Service (GEPS) Contracts
2510.5.2 Global Bulk Economy (GBE) Contracts
2510.6.2 Global Plus Contracts
2510.7.2 Global Reseller Expedited Package Contracts
2510.8.2 Global Expedited Package Services (GEPS)--Non-
Published Rates
Id. at 2.
The Postal Service states that the Notice satisfies the
requirements set forth in 39 U.S.C. 3682 and 39 CFR 3040.212 and
3040.180. See id. at 2-3. First, the Notice is filed at least 30 days
prior to the intended effective date of July 14, 2024, in accordance
with 39 CFR 3040.180(a). Id. at 3. Second, the Postal Service submits
Attachment 1 with the Notice, which contains the proposed material
changes to the MCS sections listed above in legislative format, in
accordance with 39 CFR 3040.180(b)(1). Id. Third, the Postal Service
provides the following supporting justification in accordance with 39
CFR 3040.180(b)(2). See id. at 3-7.
As rationale for the proposed changes, the Postal Service states
that the proposed changes would result in the MCS more accurately
reflecting the Postal Service's current offerings by aligning the MCS
with Universal Postal Union (UPU) Conventions Regulations Article 17-
104. Id. at 3. The Postal Service explains that in May 2023, the UPU
Postal Operations Council adopted new minimum dimensions for
international letter-post rolls, and the amended UPU Conventions
Regulations Article 17-104 will be effective August 1, 2024. Id. at 3-
4. The new minimum length will be 8.25 inches instead of 4 inches, and
the new minimum length plus twice the diameter will be 12 inches
instead of 6.75 inches. Id. at 4. The Postal Service submits Attachment
2 with the Notice, which contains Governors' Decision No. 24-1 that
establishes the revisions to the minimum size limitations for
international letter-post rolls for products with rates of general
applicability and includes a statement of explanation and justification
for the proposed changes. Id. at 4, Attachment 2. The Postal Service
also submits Attachment 3 with the Notice, which contains Governors'
Decision No. 19-1 that authorizes Postal Service management to propose
material changes to product descriptions for products with rates not of
general applicability. Id. at 4-5, Attachment 3. The Postal Service
submits Attachment 4, which is an application for non-public treatment
of Governors' Decision No. 19-1. Notice at 5, Attachment 4.
The Postal Service states that although its proposed changes will
go into effect a few days before the effective date of the amended UPU
Convention Regulations, it does not anticipate this will pose
significant operational issues. Notice at 5. In addition, the Postal
Service states that allowing the changes proposed in this Notice
together with other proposed classification changes in other dockets
\2\ to take effect on the same day (July 14, 2024) promotes efficiency
in changing information technology systems. Id. at 2, 5 n.4.
---------------------------------------------------------------------------
\2\ Docket No. CP2024-230, United States Postal Service Notice
of Changes in Classifications of General Applicability for
Competitive Products, April 9, 2024.
---------------------------------------------------------------------------
The Postal Service states that the proposed changes would not
result in the violation of any provisions of 39 U.S.C. 3633 and 39 CFR
part 3035. The Postal Service explains that changes to size limitations
for international letter-post rolls for IPA, ISAL, and FCPIS, which are
changes in classes of general applicability, are in accordance with 39
CFR 3035.104(a) and (b), because the Notice is filed at least 30 days
before the effective date of the changes and the Notice includes an
explanation and justification for the changes, the effective date, and
the record of proceedings regarding such decision. Id. at 5. In
addition, the Postal Service states that the changes to size
limitations for international letter-post rolls for IPA, ISAL, and
FCPIS are not expected to significantly affect the ability of IPA,
ISAL, and FCPIS products to cover an appropriate share of their costs,
because international letter-post rolls represent only a subset of the
revenue for these products and because these changes are not expected
to materially affect revenue for these products in any event. Id. at 6.
The Postal Service states that it does not separately identify
international letter-post rolls, therefore data relating to the cost
coverage impact of these changes on IPA, ISAL, and FCPIS are not
available. Id. As a result, the Postal Service is not able to calculate
the exact impact of these changes, and does not submit supporting
financial workpapers usually included in Competitive price changes for
products with rates of general applicability. Id.\3\ Nevertheless, in
its professional judgment, the Postal Service does not believe these
changes will have a significant impact on the cost coverage of IPA,
ISAL, and FCPIS. Notice at 6. Furthermore, the Postal Service states
that the same conclusion also applies to the changes to the products
with rates not of general applicability that include international
letter-post rolls. Id. at 6-7. Finally, the Postal Service states that
the proposed changes in the Notice would not impair the ability of
Competitive products to collectively cover an appropriate share of the
institutional costs, because the effect of the proposed changes on
revenue is likely to be small in relation to total Competitive product
revenue. Id. at 7.
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\3\ The Postal Service acknowledges that ISAL did not cover its
costs in FY 2023. Id. at 6 n.5 (citing Docket No. ACR2023, United
States Postal Service, Annual Compliance Report, December 29, 2023,
at 100-01). However, the Postal Service explains that this was
largely because of accounting adjustments that are the result of
settlement processes established with a particular foreign post for
prior calendar years. Notice at 6 n.5 (citing Docket No. ACR2023,
Responses of the United States Postal Service to Questions 1-26, 28-
57, 61 of Chairman's Information Request No. 2, January 19, 2024,
questions 29.a.-29.b. (Docket No. ACR2023, Response to CHIR No. 2)).
The Postal Service does not anticipate such large accounting
adjustments in future years. Notice at 6 n.5 (citing Docket No.
ACR2023, Response to CHIR No. 2, question 29.e.). The Commission
recognizes that ISAL has generally covered its attributable cost in
prior years, and its failure to cover cost in FY 2023 appears to be
a unique occurrence that resulted from the large, unexpected
accounting adjustments. Notice at 6 n.5 (citing Docket No. ACR2023,
Annual Compliance Determination, March 28, 2024, at 68 (FY 2023
ACD)). The Commission encourages the Postal Service to monitor the
impact of the price increase for ISAL that took effect in January
2024 and to request further price increases as necessary based on
its continued assessment of the product's projected cost coverage.
Notice at 6 n.5 (citing FY 2023 ACD at 68). The Postal Service
states that it will address any cost coverage issues relating to
ISAL in future dockets. Notice at 6 n.5.
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With regard to the likely impact that the proposed changes would
have on users of the product and on competitors, the Postal Service
states that the proposed changes may result in fewer items being
entered as international letter-post rolls due to the increased minimum
dimensions, thereby causing some volume to either migrate to larger
dimensions or be sent through competitors. Id.
III. Commission Action
The Commission establishes Docket No. MC2024-224 for consideration
of matters raised by the Notice.
The Commission invites comments on whether the Postal Service's
filing is consistent with 39 U.S.C. 3633 and 3682 and 39 CFR 3040.212,
3040.180, and part 3035. Comments are due no later than May 9, 2024.
The public portions of the filings can be accessed via the Commission's
website (https://www.prc.gov).
[[Page 27470]]
The Commission appoints Mallory L. Smith to represent the interests
of the general public (Public Representative) in this docket, pursuant
to 39 U.S.C. 505.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MC2024-224 for
consideration of matters raised by the Postal Service's Notice.
2. Pursuant to 39 U.S.C. 505, Mallory L. Smith 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 are due no later than May 9, 2024.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-08162 Filed 4-16-24; 8:45 am]
BILLING CODE 7710-FW-P