80_FR_45613 80 FR 45467 - Periodic Reporting

80 FR 45467 - Periodic Reporting

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 146 (July 30, 2015)

Page Range45467-45468
FR Document2015-18665

The Commission is noticing a recent Postal Service filing requesting that the Commission initiate an informal rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Five). This notice informs the public of the filing, invites public comment, and takes other administrative steps.

Federal Register, Volume 80 Issue 146 (Thursday, July 30, 2015)
[Federal Register Volume 80, Number 146 (Thursday, July 30, 2015)]
[Proposed Rules]
[Pages 45467-45468]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18665]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-13; Order No. 2599]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting that the Commission initiate an informal rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports (Proposal Five). This notice informs the public of the 
filing, invites public comment, and takes other administrative steps.

DATES: Comments are due: August 31, 2015. Reply Comments are due: 
September 15, 2015.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://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. Proposal Five: A New Methodology To Develop IMTS--Outbound and 
Inbound Product Costs
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    In the Fiscal Year 2014 Annual Compliance Determination (FY 2014 
ACD), the Commission directed the Postal Service to report within 90 
days on the feasibility of developing attributable costs for the 
International Money Transfer Service (IMTS)--Outbound and Inbound 
products based upon alternatives to the In-Office Cost System 
(IOCS).\1\ Cost data for the IMTS--Outbound and Inbound products are 
reported in the International Cost and Revenue Analysis (ICRA) report.
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    \1\ Docket No. ACR2014, Fiscal Year 2014 Annual Compliance 
Determination Report, March 27, 2015, at 76 (FY 2014 ACD). The IOCS 
is one of several Postal Service statistical sampling systems used 
to develop product costs.
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    On June 30, 2015, the Postal Service filed its response to this 
directive.\2\ In Item No. 4 of the Response, the Postal Service 
proposes to use data reported by the Federal Reserve Bank to estimate 
the transaction volume for the IMTS--Inbound product. Id. at 3. The 
Postal Service also proposes to use the inbound transaction volume in a 
new methodology to develop attributable costs for the IMTS--Outbound 
and Inbound products as an alternative to using IOCS statistical data. 
Id. at 5.
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    \2\ Docket No. ACR2014, Responses of the United States Postal 
Service to Commission Requests for Additional Information Regarding 
IMTS and EPG in the FY 2014 Annual Compliance Determination, June 
30, 2015 (Response).
---------------------------------------------------------------------------

    Pursuant to 39 CFR 3050.11 et. seq., the Commission establishes the 
instant docket to initiate an informal rulemaking proceeding to 
consider the changes proposed in Item No. 4 of the Response to the 
Commission's directive in the FY 2014 ACD. The proposed changes to the 
IMTS--Outbound and Inbound products are labeled as Proposal Five and 
will be considered in this docket.

II. Proposal Five: A New Methodology To Develop IMTS--Outbound and 
Inbound Product Costs

    The Postal Service proposes to estimate the transaction volume for 
the IMTS--Inbound product for the first time on an annual basis using 
data available from the Federal Reserve Bank on the number of foreign-
origin money orders cashed by the Postal Service. Id. at 3. Using this 
new inbound transaction volume, the Postal Service proposes a new 
methodology to develop the attributable costs of the IMTS--Outbound and 
Inbound products. Id. at 5.
    Currently, total attributable costs for the combined IMTS--Outbound 
and Inbound products are distributed between the products using IOCS 
tallies.\3\ The Postal Service states that both the IMTS--Outbound and 
Inbound products are small products with relatively few transactions. 
Response at 4. As a result, it is difficult to obtain a sufficient 
number of IOCS tallies to reliably estimate attributable costs for the 
IMTS--Outbound product, which causes relatively volatile unit costs 
year-to-year. Id. Moreover, in most fiscal years, the Postal Service 
has been unable to develop attributable costs for the IMTS--Inbound 
product because of an absence of IOCS tallies. In addition, the ICRA 
report does not present transaction volume for the IMTS--Inbound 
product because the Postal Service has been unable to estimate such 
transaction volume through special studies or the use of data from 
postal retail systems. Id. at 2-3.
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    \3\ See Docket No. RM2011-5, Order No. 724, Order Concerning 
Analytical Principles for Periodic Reporting (Proposals Ten through 
Twelve, May 4, 2011, at 6-8. The IOCS collects data on the 
proportion of time spent by an employee performing various functions 
on different mail products or services. These proportions of time 
are used to estimate the costs of such products or services. An 
example might be the time spent by city carriers in a delivery post 
office casing (i.e., sorting) mail. Individuals referred to as 
``tally takers'' sample the time data; hence, the term tally is used 
to identify the source of the data.
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    To develop attributable costs for the IMTS--Outbound and Inbound 
products, the Postal Service proposes to use an estimate of retail 
window service time for electronic wire transfer transactions to 
develop an electronic window service cost per transaction. Id. at 5. 
When multiplied by the number of electronic transfer transactions, the 
resulting total electronic window service costs is then subtracted from 
the total attributable costs for the combined IMTS products, with the 
remainder apportioned between transactions for outbound paper money 
orders and foreign-origin money orders cashed by the Postal Service 
based on transaction volume. Id.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-13 for consideration 
of matters raised by Item No. 4 of the Response, now identified as 
Proposal Five. More information on Proposal Five may be accessed via 
the Commission's Web site at http://www.prc.gov. The Postal Service 
filed portions of its supporting documentation under seal as part of a 
non-public annex. Information concerning access to non-public materials 
is located in 39 CFR part 3007.
    Interested persons may submit comments on Proposal Five no later

[[Page 45468]]

than August 31, 2015. Reply comments are due no later than September 
15, 2015. Pursuant to 39 U.S.C. 505, Nina Yeh is designated as officer 
of the Commission (Public Representative) to represent the interests of 
the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2015-13 for 
consideration of the matters raised by the United States Postal Service 
in its Docket No. ACR2014, Responses of the United States Postal 
Service to Commission Requests for Additional Information Regarding 
IMTS and EPG in the FY 2014 Annual Compliance Determination, Item No. 
4, filed June 30, 2015, identified herein as Proposal Five.
    2. Comments by interested persons in this proceeding are due no 
later than August 31, 2015. Reply comments are due no later than 
September 15, 2015.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Nina Yeh to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2015-18665 Filed 7-29-15; 8:45 am]
BILLING CODE 7710-FW-P



                                                                        Federal Register / Vol. 80, No. 146 / Thursday, July 30, 2015 / Proposed Rules                                                   45467

                                               rulemaking, and notice of public                         IV. Ordering Paragraphs                               Inbound products are distributed
                                               hearing (REG–138526–14) contains an                      I. Introduction                                       between the products using IOCS
                                               error that may prove to be misleading,                                                                         tallies.3 The Postal Service states that
                                               and is in need of clarification.                            In the Fiscal Year 2014 Annual                     both the IMTS—Outbound and Inbound
                                                                                                        Compliance Determination (FY 2014                     products are small products with
                                               Correction of Publication                                ACD), the Commission directed the                     relatively few transactions. Response at
                                                 Accordingly, the partial withdrawal of                 Postal Service to report within 90 days               4. As a result, it is difficult to obtain a
                                               notice of proposed rulemaking, notice of                 on the feasibility of developing                      sufficient number of IOCS tallies to
                                               proposed rulemaking, and notice of                       attributable costs for the International              reliably estimate attributable costs for
                                               public hearing (REG–138526–14) that is                   Money Transfer Service (IMTS)—                        the IMTS—Outbound product, which
                                               subject to FR Doc. 2015–15411, is                        Outbound and Inbound products based                   causes relatively volatile unit costs year-
                                               corrected as follows:                                    upon alternatives to the In-Office Cost               to-year. Id. Moreover, in most fiscal
                                                                                                        System (IOCS).1 Cost data for the                     years, the Postal Service has been
                                               § 1.148–1   [Corrected]                                  IMTS—Outbound and Inbound                             unable to develop attributable costs for
                                               ■  1. On page 36305, second column,                      products are reported in the                          the IMTS—Inbound product because of
                                               second line of paragraph (f)(3)(ii), the                 International Cost and Revenue                        an absence of IOCS tallies. In addition,
                                               language ‘‘include’’ is corrected to read                Analysis (ICRA) report.                               the ICRA report does not present
                                               ‘‘includes’’.                                               On June 30, 2015, the Postal Service
                                                                                                                                                              transaction volume for the IMTS—
                                                                                                        filed its response to this directive.2 In
                                               Martin V. Franks,                                                                                              Inbound product because the Postal
                                                                                                        Item No. 4 of the Response, the Postal
                                                                                                                                                              Service has been unable to estimate
                                               Chief, Publications and Regulations Branch,              Service proposes to use data reported by
                                               Legal Processing Division, Associate Chief                                                                     such transaction volume through special
                                                                                                        the Federal Reserve Bank to estimate the
                                               Counsel (Procedure and Administration).                  transaction volume for the IMTS—                      studies or the use of data from postal
                                               [FR Doc. 2015–18614 Filed 7–29–15; 8:45 am]              Inbound product. Id. at 3. The Postal                 retail systems. Id. at 2–3.
                                                                                                                                                                 To develop attributable costs for the
                                               BILLING CODE 4830–01–P                                   Service also proposes to use the
                                                                                                                                                              IMTS—Outbound and Inbound
                                                                                                        inbound transaction volume in a new
                                                                                                                                                              products, the Postal Service proposes to
                                                                                                        methodology to develop attributable
                                                                                                                                                              use an estimate of retail window service
                                               POSTAL REGULATORY COMMISSION                             costs for the IMTS—Outbound and
                                                                                                                                                              time for electronic wire transfer
                                                                                                        Inbound products as an alternative to
                                               39 CFR Part 3050                                                                                               transactions to develop an electronic
                                                                                                        using IOCS statistical data. Id. at 5.
                                                                                                           Pursuant to 39 CFR 3050.11 et. seq.,               window service cost per transaction. Id.
                                               [Docket No. RM2015–13; Order No. 2599]                                                                         at 5. When multiplied by the number of
                                                                                                        the Commission establishes the instant
                                                                                                        docket to initiate an informal                        electronic transfer transactions, the
                                               Periodic Reporting                                                                                             resulting total electronic window
                                                                                                        rulemaking proceeding to consider the
                                               AGENCY:   Postal Regulatory Commission.                  changes proposed in Item No. 4 of the                 service costs is then subtracted from the
                                               ACTION:   Notice of proposed rulemaking.                 Response to the Commission’s directive                total attributable costs for the combined
                                                                                                        in the FY 2014 ACD. The proposed                      IMTS products, with the remainder
                                               SUMMARY:   The Commission is noticing a                  changes to the IMTS—Outbound and                      apportioned between transactions for
                                               recent Postal Service filing requesting                  Inbound products are labeled as                       outbound paper money orders and
                                               that the Commission initiate an informal                 Proposal Five and will be considered in               foreign-origin money orders cashed by
                                               rulemaking proceeding to consider                        this docket.                                          the Postal Service based on transaction
                                               changes to analytical principles relating                                                                      volume. Id.
                                               to periodic reports (Proposal Five). This                II. Proposal Five: A New Methodology
                                                                                                        To Develop IMTS—Outbound and                          III. Initial Commission Action
                                               notice informs the public of the filing,
                                               invites public comment, and takes other                  Inbound Product Costs                                    The Commission establishes Docket
                                               administrative steps.                                       The Postal Service proposes to                     No. RM2015–13 for consideration of
                                               DATES: Comments are due: August 31,                      estimate the transaction volume for the               matters raised by Item No. 4 of the
                                               2015. Reply Comments are due:                            IMTS—Inbound product for the first                    Response, now identified as Proposal
                                               September 15, 2015.                                      time on an annual basis using data                    Five. More information on Proposal Five
                                                                                                        available from the Federal Reserve Bank               may be accessed via the Commission’s
                                               ADDRESSES: Submit comments
                                                                                                        on the number of foreign-origin money                 Web site at http://www.prc.gov. The
                                               electronically via the Commission’s
                                                                                                        orders cashed by the Postal Service. Id.              Postal Service filed portions of its
                                               Filing Online system at http://
                                                                                                        at 3. Using this new inbound transaction              supporting documentation under seal as
                                               www.prc.gov. Those who cannot submit
                                                                                                        volume, the Postal Service proposes a                 part of a non-public annex. Information
                                               comments electronically should contact
                                                                                                        new methodology to develop the                        concerning access to non-public
                                               the person identified in the FOR FURTHER
                                                                                                        attributable costs of the IMTS—                       materials is located in 39 CFR part 3007.
                                               INFORMATION CONTACT section by
                                                                                                        Outbound and Inbound products. Id.                       Interested persons may submit
                                               telephone for advice on filing                                                                                 comments on Proposal Five no later
                                               alternatives.                                            at 5.
                                                                                                           Currently, total attributable costs for
                                               FOR FURTHER INFORMATION CONTACT:                                                                                  3 See Docket No. RM2011–5, Order No. 724,
                                                                                                        the combined IMTS—Outbound and                        Order Concerning Analytical Principles for Periodic
                                               David A. Trissell, General Counsel, at
                                                                                                                                                              Reporting (Proposals Ten through Twelve, May 4,
                                               202–789–6820.                                               1 Docket No. ACR2014, Fiscal Year 2014 Annual
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                                                                                                                                                              2011, at 6–8. The IOCS collects data on the
                                               SUPPLEMENTARY INFORMATION:                               Compliance Determination Report, March 27, 2015,      proportion of time spent by an employee
                                                                                                        at 76 (FY 2014 ACD). The IOCS is one of several       performing various functions on different mail
                                               Table of Contents                                        Postal Service statistical sampling systems used to   products or services. These proportions of time are
                                                                                                        develop product costs.                                used to estimate the costs of such products or
                                               I. Introduction                                             2 Docket No. ACR2014, Responses of the United      services. An example might be the time spent by
                                               II. Proposal Five: A New Methodology To                  States Postal Service to Commission Requests for      city carriers in a delivery post office casing (i.e.,
                                                     Develop IMTS—Outbound and Inbound                  Additional Information Regarding IMTS and EPG in      sorting) mail. Individuals referred to as ‘‘tally
                                                     Product Costs                                      the FY 2014 Annual Compliance Determination,          takers’’ sample the time data; hence, the term tally
                                               III. Initial Commission Action                           June 30, 2015 (Response).                             is used to identify the source of the data.



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                                               45468                    Federal Register / Vol. 80, No. 146 / Thursday, July 30, 2015 / Proposed Rules

                                               than August 31, 2015. Reply comments                     the person identified in the FOR FURTHER               the use of the international accounting
                                               are due no later than September 15,                      INFORMATION CONTACT    section by                      data. Id. The Postal Service states this
                                               2015. Pursuant to 39 U.S.C. 505, Nina                    telephone for advice on filing                         change will streamline the ICRA data
                                               Yeh is designated as officer of the                      alternatives.                                          sources by eliminating 16 of the 20
                                               Commission (Public Representative) to                    FOR FURTHER INFORMATION CONTACT:                       datasets and retaining only four files for
                                               represent the interests of the general                   David A. Trissell, General Counsel, at                 outbound Priority Mail Express
                                               public in this proceeding.                               202–789–6820.                                          International data that are not provided
                                                                                                                                                               by SIRVO. Id. at 2. Further, Proposal
                                               IV. Ordering Paragraphs                                  SUPPLEMENTARY INFORMATION:
                                                                                                                                                               Four will include data for the 186
                                                 It is ordered:                                         Table of Contents                                      additional countries/territories currently
                                                 1. The Commission establishes Docket                   I. Introduction                                        subsumed in the four regional aggregate
                                               No. RM2015–13 for consideration of the                   II. Summary of Proposal                                groups. Id.
                                               matters raised by the United States                      III. Initial Commission Action                           The Postal Service states that despite
                                               Postal Service in its Docket No.                         IV. Ordering Paragraphs                                movement in the costs for individual
                                               ACR2014, Responses of the United                                                                                products because of the new weighting
                                                                                                        I. Introduction                                        scheme, overall costs will remain the
                                               States Postal Service to Commission
                                               Requests for Additional Information                         On July 17, 2015, the Postal Service                same (to within one ten-thousandth of 1
                                               Regarding IMTS and EPG in the FY                         filed a petition pursuant to 39 CFR                    percent) due to the ICRA benchmarking
                                               2014 Annual Compliance                                   3050.11 requesting that the Commission                 process. Id. at 4. The Postal Service
                                               Determination, Item No. 4, filed June 30,                initiate an informal rulemaking                        identifies 36 changes that differ by more
                                               2015, identified herein as Proposal Five.                proceeding to consider changes to                      than $0.01 and 1 percent at the same
                                                 2. Comments by interested persons in                   analytical principles relating to periodic             time as a result of Proposal 4. Id. at 3.
                                               this proceeding are due no later than                    reports.1 Proposal Four is attached to                 By way of example, the Postal Service
                                               August 31, 2015. Reply comments are                      the Petition and identifies the proposed               represents that the shift to the SIRVO
                                               due no later than September 15, 2015.                    analytical method change as a change                   data sources will increase the volume-
                                                 3. Pursuant to 39 U.S.C. 505, the                      relating to the use of the Summary of                  variable costs for International Priority
                                               Commission appoints Nina Yeh to serve                    International Revenue and Volume                       Airmail and International Surface Airlift
                                               as an officer of the Commission (Public                  Outbound statistical system (SIRVO) in                 by $125,000 and $85,000, respectively.
                                               Representative) to represent the                         the International Cost and Revenue                     Id. The Postal Service asserts that this
                                               interests of the general public in this                  Analysis (ICRA) report. Id. The Postal                 cost change is isolated in outbound
                                               docket.                                                  Service concurrently filed a nonpublic                 products covered by SIRVO and any
                                                 4. The Secretary shall arrange for                     library reference, along with an                       affected NSAs in the international
                                               publication of this order in the Federal                 application for nonpublic treatment of                 settlements estimates. Id. The Postal
                                               Register.                                                materials.2                                            Service also asserts that the only market
                                                By the Commission.                                      II. Summary of Proposal                                dominant category to experience a
                                                                                                                                                               change of 1 percent or more was the
                                               Ruth Ann Abrams,                                            The Postal Service explains that the                total volume-variable cost increase of
                                               Acting Secretary.                                        ICRA processing currently uses 20                      $10,000 for Outbound International
                                               [FR Doc. 2015–18665 Filed 7–29–15; 8:45 am]              individual quarterly international                     Cards to Transition System Countries at
                                               BILLING CODE 7710–FW–P                                   accounting datasets to provide country-                Universal Postal Union rates. Id. at 4.
                                                                                                        specific outbound mail flow data for 46
                                                                                                        individual countries and four regional                 III. Initial Commission Action
                                               POSTAL REGULATORY COMMISSION                             aggregated country groupings. Petition,                   The Commission establishes Docket
                                                                                                        Proposal Four at 2. International                      No. RM2015–12 for consideration of
                                               39 CFR part 3050                                         accounting data have been the source of                matters raised by the Petition.
                                               [Docket No. RM2015–12; Order No. 2601]                   the mail flow data for countries not                   Additional information concerning the
                                                                                                        reported in the ICRA inputs by SIRVO.                  Petition may be accessed via the
                                               Periodic Reporting                                       Id.                                                    Commission’s Web site at http://
                                                                                                           Under Proposal Four, the Postal                     www.prc.gov. Interested persons may
                                               AGENCY:   Postal Regulatory Commission.                  Service seeks to use expanded SIRVO                    submit comments on the Petition and
                                               ACTION:   Notice of proposed rulemaking.                 data in lieu of international accounting               Proposal Four no later than August 31,
                                                                                                        data. Id. The Postal Service asserts that              2015. Reply comments are due no later
                                               SUMMARY:   The Commission is noticing a                  the change does not materially affect the
                                               recent Postal Service filing requesting                                                                         than September 15, 2015. Pursuant to 39
                                                                                                        overall workings of the ICRA because                   U.S.C. 505, James F. Callow is
                                               that the Commission initiate an informal                 the use of the SIRVO data is parallel to
                                               rulemaking proceeding to consider                                                                               designated as officer of the Commission
                                               changes to analytical principles relating                  1 Petition of the United States Postal Service for
                                                                                                                                                               (Public Representative) to represent the
                                               to periodic reports (Proposal Four). This                the Initiation of a Proceeding to Consider Proposed
                                                                                                                                                               interests of the general public in this
                                               notice informs the public of the filing,                 Changes in Analytical Principles (Proposal Four),      proceeding.
                                               invites public comment, and takes other                  July 17, 2015 (Petition).
                                                                                                          2 Notice of Filing of USPS–RM2015–12/NP1 and
                                                                                                                                                               IV. Ordering Paragraphs
                                               administrative steps.                                    Application for Nonpublic Treatment, July 17, 2015       It is ordered:
                                               DATES: Comments are due: August 31,
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                                                                                                        (Notice). The Library Reference is USPS–RM2015–          1. The Commission establishes Docket
                                               2015. Reply Comments are due:                            12/NP1—Nonpublic Material Relating to Proposal
                                                                                                        Four (SIRVO Inputs to ICRA). The Notice
                                                                                                                                                               No. RM2015–12 for consideration of the
                                               September 15, 2015.                                      incorporates by reference the Application for Non-     matters raised by the Petition of the
                                               ADDRESSES: Submit comments                               Public Treatment of Materials contained in             United States Postal Service for the
                                               electronically via the Commission’s                      Attachment Two to the December 29, 2014, United        Initiation of a Proceeding to Consider
                                                                                                        States Postal Service Fiscal Year 2014 Annual
                                               Filing Online system at http://                          Compliance Report. Notice at 1. See 39 CFR part
                                                                                                                                                               Proposed Changes in Analytical
                                               www.prc.gov. Those who cannot submit                     3007 for information on access to nonpublic            Principles (Proposal Four), filed July 17,
                                               comments electronically should contact                   material.                                              2015.


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Document Created: 2018-02-23 09:29:55
Document Modified: 2018-02-23 09:29:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking.
DatesComments are due: August 31, 2015. Reply Comments are due: September 15, 2015.
ContactDavid A. Trissell, General Counsel, at 202-789-6820.
FR Citation80 FR 45467 

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