80 FR 81380 - International Mail Contract

POSTAL REGULATORY COMMISSION

Federal Register Volume 80, Issue 249 (December 29, 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 Canada Post. This notice informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 80, Number 249 (Tuesday, December 29, 2015)]
[Notices]
[Pages 81380-81381]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32712]


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POSTAL REGULATORY COMMISSION

[Docket No. R2016-4; Order No. 2918]


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 Canada Post. This notice informs the 
public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: January 5, 2016.

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 December 17, 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 Canada Post 2016 Agreement 
(Agreement),\2\ the inbound portion of a bilateral agreement with 
Canada Post Corporation (``Canada Post'' or ``CPC'') that the Postal 
Service contends is functionally equivalent to the baseline agreement 
with Koninklijke TNT Post B.V and TNT Post Pakketservice Benelux B.V. 
(``TNT Post''), (``the TNT Agreement'').\3\ The TNT Agreement is the 
baseline agreement that the Commission included within the Inbound 
Market Dominant Multi-Service Agreements with Foreign Postal Operators 
1 product on the market dominant product list of the Mail 
Classification Schedule. Id.
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    \1\ Notice of United States Postal Service of Type 2 Rate 
Adjustment, and Notice of Filing Functionally Equivalent Agreement, 
December 17, 2015, at 1 (Notice).
    \2\ The Agreement replaces the Canada Post 2014 Agreement 
reviewed by the Commission in PRC Docket No. R2014-3. Docket No. 
R2014-3, Order No. 1940, Order Approving an Additional Inbound 
Market Dominant Multi-Service Agreement with Foreign Postal 
Operators 1 Negotiated Service Agreement (with Canada Post 
Corporation), December 31, 2013.
    \3\ See Docket Nos. MC2010-35, R2010-5, and R2010-6, Order No. 
549, 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.
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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 materials filed under seal with 
the Commission. Id. Attachment 2 is a redacted copy of the Agreement. 
Id. On December 22, 2015, the Postal Service filed a signed version of 
the agreement.\4\
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    \4\ See Docket Nos. CP2016-57 and R2016-4, Notice of United 
States Postal Service of Filing Executed Agreement, December 22, 
2015.
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    The Agreement is the successor agreement to one previously found to 
be functionally equivalent to the baseline agreement in the Inbound 
Market Dominant Multi-Service Agreement with Foreign Postal Operators 1 
(MC2010-35) product.\5\ The Agreement provides that the effective date 
is February 1, 2016 for market dominant products. Notice, Attachment 2 
at 8.
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    \5\ See Order No. 549, see also Order No. 1940.
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    The Postal Service asserts that 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 Canada 
Post, the designated postal operator for handling letter-post 
originating in Canada. Notice at 3, 6. The Postal Service further 
asserts that the Agreement is intended to remain in effect until 
December 31, 2017. Id. at 4.
    The Postal Service states that the Agreement includes negotiated 
pricing and settlement for various inbound letter-post products, 
including registered mail, small packets with delivery confirmation, 
and International Business Reply Service (IBRS). Id.
    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 8. The Postal Service also invokes, with respect to 
service performance measurement reporting under 39 CFR 3055.3(a)(3), 
the standing exception in Order No. 996 for all agreements filed in the 
Inbound Market Dominant Multi-Service Agreements with Foreign Postal 
Operators 1 product grouping.\6\
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    \6\ 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 
codified in 39 CFR 3010.40. These are 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. Notice at 8. The Postal 
Service asserts that it addresses the first two criteria in its Notice 
and that the third criterion is inapplicable, as there are no entities 
similarly situated to Canada Post in terms of its ability to tender 
broad-based small packet flows from Canada or serve as a designated 
operator for letter-post originating in Canada. Id. at 8-9.
    Functional equivalence. The Postal Service addresses reasons why it 
considers the Agreement functionally equivalent to the baseline TNT 
Agreement and requests that the Agreement be added to the market 
dominant product list within the Inbound Market Dominant Multi-

[[Page 81381]]

Service Agreements with Foreign Postal Operators 1 product. Id. at 9-
10, 13. The Postal Service identifies differences between the Agreement 
and the TNT Agreement, but asserts that these differences do not 
detract from the conclusion that the Agreement is functionally 
equivalent to the TNT Agreement. Id. at 10-13.

III. Commission Action

    The Commission, in conformance with rule 3010.44, establishes 
Docket No. R2016-4 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 January 5, 2016. 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 Nina Yeh 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. R2016-4 for consideration 
of matters raised by the Postal Service's Notice.
    2. Pursuant to 39 U.S.C. 505, Nina Yeh 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 January 5, 2016.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2015-32712 Filed 12-28-15; 8:45 am]
 BILLING CODE 7710-FW-P