80 FR 72753 - International Mail Contract

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 224 (November 20, 2015)

The Commission is noticing a recent Postal Service filing concerning a Type 2 rate adjustment and the filing of a related negotiated service agreement with Korea Post. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Notices]
[Pages 72753-72754]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-29621]


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POSTAL REGULATORY COMMISSION

[Docket No. R2016-1; Order No. 2819]


International Mail Contract

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning a Type 2 rate adjustment and the filing of a related 
negotiated service agreement with Korea Post. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: November 23, 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. Contents of Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On November 13, 2015, the Postal Service filed a notice, pursuant 
to 39 CFR 3010.40 et seq., announcing a Type 2 rate adjustment to 
improve default rates established under the Universal Postal Union 
(UPU) Acts.\1\ The Notice concerns the inbound portion of a Multi-
Product Bilateral Agreement with Korea Post (Agreement) that the Postal 
Service contends is functionally equivalent to the baseline agreement 
with China Post (China Post 2010 Agreement) that the Commission 
included within the Inbound Market Dominant Multi-Service Agreements 
with Foreign Postal Operators 1 product in the market dominant product 
list of the Mail Classification Schedule.\2\ Notice at 1-2.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
November 13, 2015, at 1 (Notice).
    \2\ See Docket Nos. MC2010-35, R2010-5, and R2010-6, Order 
Adding Inbound Market Dominant Multi-Service Agreements with Foreign 
Postal Operators 1 to the Market Dominant Product List and Approving 
Included Agreements, September 30, 2010 (Order No. 549).
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II. Contents of Filing

    The Postal Service's filing consists of the Notice, two 
attachments, and redacted and unredacted versions of an Excel file with 
supporting financial workpapers. Notice at 2. Attachment 1 is an 
application for non-public treatment of material filed under seal with 
the Commission. Attachment 2 is a redacted copy of the Agreement. Id.
    The Postal Service states the intended effective date of the 
Agreement is January 1, 2016; asserts it is providing at least the 45 
days advance notice required under 39 CFR 3010.41; and identifies the 
parties to the Agreement as the United States Postal Service and Korea 
Post, the postal operator for the Republic of Korea. Id. at 2-3.
    The Postal Service states that the Agreement includes: Revised 
rates and terms for small packets with delivery scanning; improvement 
to labels; use of Postal Service barcodes to facilitate sortation; and 
sortation recommendations. Id. at 4.
    Reporting requirements. 39 CFR 3010.43 requires the Postal Service 
to submit a detailed data collection plan. In lieu of a special data 
collection plan for the Agreement, the Postal Service proposes to 
report information on the Agreement through the Annual Compliance 
Report. Id. at 6. The Postal Service also invokes, with respect to 
service performance measurement reporting under 39 CFR 3055.3(a)(3), 
the standing exception the Commission allowed in Order No. 996 for all 
agreements filed in the Inbound Market Dominant Multi-Service 
Agreements with Foreign Postal Operators 1 product grouping.\3\
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    \3\ Id., citing Docket No. R2012-2, Order Concerning an 
Additional Inbound Market Dominant Multi-Service Agreement with 
Foreign Postal Operators 1 Negotiated Service Agreement, November 
23, 2011, at 7 (Order No. 996).
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    Consistency with applicable statutory criteria. The Postal Service 
observes that Commission review of a negotiated service agreement 
addresses three statutory criteria under 39 U.S.C. 3622(c)(10), as 
identified in 39 CFR 3010.40, i.e., 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 7. 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 
Korea Post in terms of its ability to tender broad-based small packet 
flows from Korea. Id.
    Functional equivalence. The Postal Service addresses reasons why it 
considers the Agreement functionally equivalent to the China Post 2010 
Agreement filed in Docket No. R2010-6.\4\ The Postal Service identifies 
differences between the Agreement and the baseline agreement, but 
asserts that these differences do not detract from the conclusion that 
the Agreement is functionally equivalent to the baseline agreement. Id.
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    \4\ Id at 8-9; see Order No. 549.
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III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2016-1 to consider issues raised in the Notice. The 
Commission invites comments from interested persons on whether the 
Agreement is consistent with 39 U.S.C. 3622 and the requirements of 39 
CFR part 3010. Comments are due no later than November 23, 2015. The 
public portions of this filing can be accessed via the Commission's Web 
site (http://www.prc.gov). Information on how to obtain access to non-
public material appears in 39 CFR part 3007.
    The Commission appoints James F. Callow to represent the interests 
of the general public (Public Representative) in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2016-1 for consideration 
of matters raised by the Postal Service's Notice.
    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.

[[Page 72754]]

    3. Comments by interested persons in this proceeding are due no 
later than November 23, 2015.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2015-29621 Filed 11-19-15; 8:45 am]
BILLING CODE 7710-FW-P