81 FR 15760 - Market Test of Experimental Product-Customized Delivery
POSTAL REGULATORY COMMISSION Federal Register Volume 81, Issue 57 (March 24, 2016)
Federal Register Volume 81, Issue 57 (March 24, 2016)
| Page Range | 15760-15761 | |
| FR Document | 2016-06616 |
[Federal Register Volume 81, Number 57 (Thursday, March 24, 2016)] [Notices] [Pages 15760-15761] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-06616] ----------------------------------------------------------------------- POSTAL REGULATORY COMMISSION [Docket No. MT2016-1; Order No. 3162] Market Test of Experimental Product-Customized Delivery AGENCY: Postal Regulatory Commission. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The Commission is noticing a recently-filed Postal Service proposal to conduct a market test of an experimental product called Global eCommerce Marketplace (GeM) Merchant. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: April 11, 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. Background III. Contents of Filing IV. Notice of Commission Action V. Ordering Paragraphs I. Introduction In accordance with 39 U.S.C. 3641 and 39 CFR 3035.3, the Postal Service filed notice of its intent to conduct a market test of an experimental product called Global eCommerce Marketplace (GeM) Merchant.\1\ GeM Merchant would allow domestic online merchants to offer their international customers the ability, at the time of purchase, to prepay the estimated duties and taxes that the foreign country's customs agency will assess upon the shipment's arrival in the foreign destination. Notice at 2. --------------------------------------------------------------------------- \1\ Notice of the United States Postal Service of Market Test of Experimental Product--Global eCommerce Marketplace (GeM) Merchant Solution and Notice of Filing GeM Merchant Model Contract and Application for Non-Public Treatment of Materials Filed Under Seal, March 16, 2016 (Notice). --------------------------------------------------------------------------- II. Background According to the Postal Service, GeM Merchant constitutes a novel eCommerce service for domestic online merchants and their international customers. Id. The Postal Service explains that at the time of purchase, GeM Merchant would allow international customers of domestic online merchants to prepay estimated duties and taxes. Id. The Postal Service describes that the domestic merchant will receive the order and will prepare the item for domestic shipment to the GeM processing facility. Id. After the item arrives at the GeM processing facility, the Postal Service indicates that it or its supplier will inspect the item for verification and security, as well as prepare and arrange for the item's international shipment and delivery to the overseas address. Id. A. Nature and Scope of the Proposed GeM Merchant Market Test The Postal Service intends to offer GeM Merchant to a limited number of domestic online merchants through negotiated service agreements (NSAs) that would include, but not be limited to, localization, export compliance, delivery speed, and targeted marketing features. Id. Through the market test, the Postal Service plans to assess GeM Merchant's revenue potential, competitive price points, and potential for expansion. Id. The Postal Service asserts that the proposed GeM Merchant market test would likely benefit the public by meeting the demands of domestic online merchants and their international customers. Id. at 7. The Postal Service anticipates that the GeM Merchant product would contribute to the Postal Service's financial stability by generating more outbound international package delivery opportunities. Id. at 7-8. 1. Duration The Postal Service plans to begin the market test on or shortly after April 30, 2016, to run for 2 calendar years. Id. at 6. After determining the actual start date, the Postal Service intends to file a notice with the Commission providing the definite start date. Id. at 6 n.4. During the 2-year market test period, the Postal Service intends to offer NSAs with standard 1-year terms to domestic online merchants. Id. at 6. The Postal Service requests that the Notice serve as an application for extension under 39 U.S.C. 3641(d) for any NSAs that have terms that extend beyond the 2-year period of the market test. Id. The Postal Service represents the extension would be limited to satisfying existing contractual obligations and that it would not initiate any new agreements with merchants after the 2-year period of the market test. Id. at 6-7. If the market test is successful, the Postal Service states that it would seek permanent product status for GeM Merchant. Id. at 7. 2. Geographic Markets According to the Postal Service, because GeM Merchant is an international product offered to select domestic merchants through NSAs rather than a retail service offered to the American public, the geographical scope analysis under 39 CFR 3035.3(a)(2)(iv) is not germane to this market test. Id. The Postal Service represents that it intends to offer GeM Merchant using two processing locations and to execute contracts with few merchants, i.e., less than 1 percent of the overall domestic merchant target segment. Id. 3. Revenues The Postal Service does not request a waiver of the $10 million, as adjusted for inflation, annual revenue limitation at this time. Id.; see 39 U.S.C. 3641(e). If market test revenues approach the cap, the Postal Service states that it will submit an application for exemption from the $10 million limitation under 39 U.S.C. 3641(e)(2) and 39 CFR 3035.16. Notice at 7. 4. Data Collection Plan The Postal Service proposes to report the costs, revenues, and volumes associated with each agreement on a [[Page 15761]] quarterly basis. Id. at 8; see 39 CFR 3035.20. 5. Statutory Authority The Postal Service asserts that the proposed GeM Merchant market test satisfies the conditions on market tests of experimental products. Notice at 3; see 39 U.S.C. 3641(b). The Postal Service submits that GeM Merchant is significantly different from all products offered within the past 2 years. Notice at 3; see 39 U.S.C. 3641(b)(1). The Postal Service states that GeM Merchant would offer a new feature: the ability for a consumer to prepay estimated foreign duties and taxes at the time of purchase. Notice at 4. The Postal Service does not expect GeM Merchant to create an ``unfair or otherwise inappropriate competitive advantage for the Postal Service or any mailer, with regard to any other party (including small businesses).'' Id. at 5 (quoting 39 U.S.C. 3641(b)(2)); see 39 U.S.C. 3641(b)(2). The Postal Service states that at least four companies presently offer similar services, including one small business, which the Postal Service has contracted with. Notice at 5. Furthermore, the Postal Service represents that the proposed GeM Merchant market test would not directly compete with small businesses offering niche regional and freight-forwarding services because those small businesses serve a different market than the end-to-end GeM Merchant product. Id. The Postal Service classifies GeM Merchant as a competitive product, asserting that GeM Merchant is designed for international packages and are unlikely to contain any letters, and thus, do not fall under the Private Express Statutes. Id. at 6; see 39 U.S.C. 3641(b)(3). The Postal Service asserts that it faces significant competition in the outbound international package delivery marketplace, including major competitors with products for facilitating outbound international shipments with duties and taxes paid at the time of purchase. Notice at 6. III. Contents of Filing To support its Notice, the Postal Service filed its proposed changes to the Mail Classification Schedule, as well as redacted versions of the GeM Merchant model contract, GeM Merchant price ranges summary, and supporting financial workpapers. The Postal Service also submitted an application for non-public treatment of materials requesting that unredacted versions of the GeM Merchant model contract, GeM Merchant price ranges summary, and related financial information remain under seal. Id. Attachment 1. IV. Notice of Commission Action The Commission establishes Docket No. MT2016-1 to consider matters raised by the Notice. The Commission invites comments on whether the Postal Service's filing is consistent with the requirements of 39 U.S.C. 3641 and 39 CFR part 3035. Comments are due no later than April 11, 2016. The public portions of these filings can be accessed via the Commission's Web site (http://www.prc.gov). The Commission appoints James Waclawski to serve as an officer of the Commission to represent the interests of the general public in these proceedings (Public Representative). V. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. MT2016-1 to consider the matters raised by the Notice. 2. Pursuant to 39 U.S.C. 505, James Waclawski is appointed to serve as an officer of the Commission to represent the interests of the general public in these proceedings (Public Representative). 3. Comments are due no later than April 11, 2016. 4. The Secretary shall arrange for publication of this order in the Federal Register. By the Commission. Stacy L. Ruble, Secretary. [FR Doc. 2016-06616 Filed 3-23-16; 8:45 am] BILLING CODE 7710-FW-P
![15760 Federal Register / Vol. 81, No. 57 / Thursday, March 24, 2016 / Notices
accessed via the Commission’s Web site III. Contents of Filing anticipates that the GeM Merchant
(http://www.prc.gov). IV. Notice of Commission Action product would contribute to the Postal
The Commission appoints Lyudmila V. Ordering Paragraphs Service’s financial stability by
Y. Bzhilyanskaya to serve as Public I. Introduction generating more outbound international
Representative in these dockets. package delivery opportunities. Id. at 7–
In accordance with 39 U.S.C. 3641
8.
III. Ordering Paragraphs and 39 CFR 3035.3, the Postal Service
filed notice of its intent to conduct a 1. Duration
It is ordered:
market test of an experimental product
1. The Commission establishes Docket The Postal Service plans to begin the
called Global eCommerce Marketplace
Nos. MC2016–102 and CP2016–130 to market test on or shortly after April 30,
(GeM) Merchant.1 GeM Merchant would
consider the matters raised in each 2016, to run for 2 calendar years. Id. at
allow domestic online merchants to
docket. 6. After determining the actual start
offer their international customers the
2. Pursuant to 39 U.S.C. 505, date, the Postal Service intends to file a
ability, at the time of purchase, to
Lyudmila Y. Bzhilyanskaya is appointed notice with the Commission providing
prepay the estimated duties and taxes
to serve as an officer of the Commission the definite start date. Id. at 6 n.4.
that the foreign country’s customs
to represent the interests of the general During the 2-year market test period, the
agency will assess upon the shipment’s
public in these proceedings (Public arrival in the foreign destination. Notice Postal Service intends to offer NSAs
Representative). at 2. with standard 1-year terms to domestic
3. Comments are due no later than online merchants. Id. at 6. The Postal
March 28, 2016. II. Background Service requests that the Notice serve as
4. The Secretary shall arrange for According to the Postal Service, GeM an application for extension under 39
publication of this order in the Federal Merchant constitutes a novel U.S.C. 3641(d) for any NSAs that have
Register. eCommerce service for domestic online terms that extend beyond the 2-year
By the Commission. merchants and their international period of the market test. Id. The Postal
Stacy L. Ruble, customers. Id. The Postal Service Service represents the extension would
Secretary. explains that at the time of purchase, be limited to satisfying existing
GeM Merchant would allow contractual obligations and that it
[FR Doc. 2016–06676 Filed 3–23–16; 8:45 am]
international customers of domestic would not initiate any new agreements
BILLING CODE 7710–FW–P
online merchants to prepay estimated with merchants after the 2-year period
duties and taxes. Id. The Postal Service of the market test. Id. at 6–7. If the
POSTAL REGULATORY COMMISSION describes that the domestic merchant market test is successful, the Postal
will receive the order and will prepare Service states that it would seek
[Docket No. MT2016–1; Order No. 3162] the item for domestic shipment to the permanent product status for GeM
GeM processing facility. Id. After the Merchant. Id. at 7.
Market Test of Experimental Product- item arrives at the GeM processing
Customized Delivery facility, the Postal Service indicates that 2. Geographic Markets
AGENCY: Postal Regulatory Commission. it or its supplier will inspect the item According to the Postal Service,
for verification and security, as well as because GeM Merchant is an
ACTION: Notice.
prepare and arrange for the item’s international product offered to select
SUMMARY: The Commission is noticing a international shipment and delivery to domestic merchants through NSAs
recently-filed Postal Service proposal to the overseas address. Id. rather than a retail service offered to the
conduct a market test of an A. Nature and Scope of the Proposed American public, the geographical
experimental product called Global GeM Merchant Market Test scope analysis under 39 CFR
eCommerce Marketplace (GeM) 3035.3(a)(2)(iv) is not germane to this
The Postal Service intends to offer market test. Id. The Postal Service
Merchant. This notice informs the
GeM Merchant to a limited number of represents that it intends to offer GeM
public of the filing, invites public
domestic online merchants through Merchant using two processing
comment, and takes other
negotiated service agreements (NSAs) locations and to execute contracts with
administrative steps.
that would include, but not be limited few merchants, i.e., less than 1 percent
DATES: Comments are due: April 11, to, localization, export compliance,
2016. of the overall domestic merchant target
delivery speed, and targeted marketing segment. Id.
ADDRESSES: Submit comments features. Id. Through the market test, the
electronically via the Commission’s Postal Service plans to assess GeM 3. Revenues
Filing Online system at http:// Merchant’s revenue potential,
The Postal Service does not request a
www.prc.gov. Those who cannot submit competitive price points, and potential
waiver of the $10 million, as adjusted
comments electronically should contact for expansion. Id.
The Postal Service asserts that the for inflation, annual revenue limitation
the person identified in the FOR FURTHER at this time. Id.; see 39 U.S.C. 3641(e).
INFORMATION CONTACT section by proposed GeM Merchant market test
would likely benefit the public by If market test revenues approach the
telephone for advice on filing cap, the Postal Service states that it will
alternatives. meeting the demands of domestic online
submit an application for exemption
asabaliauskas on DSK3SPTVN1PROD with NOTICES
merchants and their international
FOR FURTHER INFORMATION CONTACT: customers. Id. at 7. The Postal Service from the $10 million limitation under
David A. Trissell, General Counsel, at 39 U.S.C. 3641(e)(2) and 39 CFR
202–789–6820. 1 Notice of the United States Postal Service of 3035.16. Notice at 7.
SUPPLEMENTARY INFORMATION: Market Test of Experimental Product—Global
eCommerce Marketplace (GeM) Merchant Solution
4. Data Collection Plan
Table of Contents and Notice of Filing GeM Merchant Model Contract
The Postal Service proposes to report
and Application for Non-Public Treatment of
I. Introduction Materials Filed Under Seal, March 16, 2016 the costs, revenues, and volumes
II. Background (Notice). associated with each agreement on a
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![Federal Register / Vol. 81, No. 57 / Thursday, March 24, 2016 / Notices 15761
quarterly basis. Id. at 8; see 39 CFR related financial information remain Regulatory Commission a notice setting
3035.20. under seal. Id. Attachment 1. out the basis for the Postal Service’s
determination that the market test is
5. Statutory Authority IV. Notice of Commission Action
covered by 39 U.S.C. 3641 and
The Postal Service asserts that the The Commission establishes Docket describing the nature and scope of the
proposed GeM Merchant market test No. MT2016–1 to consider matters market test. Documents are available at
satisfies the conditions on market tests raised by the Notice. The Commission www.prc.gov, Docket No. MT2016–1.
of experimental products. Notice at 3; invites comments on whether the Postal
Service’s filing is consistent with the Stanley F. Mires,
see 39 U.S.C. 3641(b). The Postal
requirements of 39 U.S.C. 3641 and 39 Attorney, Legal Policy & Legislative Advice.
Service submits that GeM Merchant is
significantly different from all products CFR part 3035. Comments are due no [FR Doc. 2016–06623 Filed 3–23–16; 8:45 am]
offered within the past 2 years. Notice later than April 11, 2016. The public BILLING CODE 7710–12–P
at 3; see 39 U.S.C. 3641(b)(1). The Postal portions of these filings can be accessed
Service states that GeM Merchant would via the Commission’s Web site (http://
offer a new feature: the ability for a www.prc.gov). SECURITIES AND EXCHANGE
consumer to prepay estimated foreign The Commission appoints James COMMISSION
duties and taxes at the time of purchase. Waclawski to serve as an officer of the
Commission to represent the interests of [Release No. 34–77402; File No. SR–Phlx–
Notice at 4. 2016–21]
The Postal Service does not expect the general public in these proceedings
GeM Merchant to create an ‘‘unfair or (Public Representative). Self-Regulatory Organizations;
otherwise inappropriate competitive V. Ordering Paragraphs NASDAQ PHLX LLC; Notice of Filing
advantage for the Postal Service or any and Immediate Effectiveness of
mailer, with regard to any other party It is ordered: Proposed Rule Change To Amend
(including small businesses).’’ Id. at 5 1. The Commission establishes Docket
Rebates and Fees for Adding and
(quoting 39 U.S.C. 3641(b)(2)); see 39 No. MT2016–1 to consider the matters
Removing Liquidity in SPY
U.S.C. 3641(b)(2). The Postal Service raised by the Notice.
2. Pursuant to 39 U.S.C. 505, James DATE: March 18, 2016.
states that at least four companies
Waclawski is appointed to serve as an
presently offer similar services, Pursuant to Section 19(b)(1) of the
officer of the Commission to represent
including one small business, which the Securities Exchange Act of 1934
the interests of the general public in
Postal Service has contracted with. (‘‘Act’’),1 and Rule 19b–4 thereunder,2
these proceedings (Public
Notice at 5. Furthermore, the Postal notice is hereby given that on March 10,
Representative).
Service represents that the proposed 2016, NASDAQ PHLX LLC
3. Comments are due no later than
GeM Merchant market test would not (‘‘Exchange’’) filed with the Securities
April 11, 2016.
directly compete with small businesses and Exchange Commission (‘‘SEC’’ or
4. The Secretary shall arrange for
offering niche regional and freight- ‘‘Commission’’) the proposed rule
publication of this order in the Federal
forwarding services because those small change as described in Items I, II, and
Register.
businesses serve a different market than III, below, which Items have been
the end-to-end GeM Merchant product. By the Commission. prepared by the Exchange. The
Id. Stacy L. Ruble, Commission is publishing this notice to
The Postal Service classifies GeM Secretary. solicit comments on the proposed rule
Merchant as a competitive product, [FR Doc. 2016–06616 Filed 3–23–16; 8:45 am] change from interested persons.
asserting that GeM Merchant is designed BILLING CODE 7710–FW–P
for international packages and are I. Self-Regulatory Organization’s
unlikely to contain any letters, and thus, Statement of the Terms of Substance of
do not fall under the Private Express the Proposed Rule Change
POSTAL SERVICE
Statutes. Id. at 6; see 39 U.S.C. The Exchange proposes to amend the
3641(b)(3). The Postal Service asserts Market Test of Experimental Product: Phlx Pricing Schedule at Section I,
that it faces significant competition in Global eCommerce Marketplace (GeM) entitled ‘‘Rebates and Fees for Adding
the outbound international package Merchant Solution and Removing Liquidity in SPY,’’
delivery marketplace, including major specifically related to PIXL 3 executions
competitors with products for AGENCY: Postal ServiceTM. in options overlying SPY.4
facilitating outbound international ACTION: Notice. The text of the proposed rule change
shipments with duties and taxes paid at is available on the Exchange’s Web site
SUMMARY: The Postal Service gives
the time of purchase. Notice at 6.
notice of a market test of an 1 15 U.S.C. 78s(b)(1).
III. Contents of Filing experimental product in accordance 2 17 CFR 240.19b–4.
with statutory requirements. 3 PIXLSM is the Exchange’s price improvement
To support its Notice, the Postal
Service filed its proposed changes to the DATES: March 24, 2016. mechanism known as Price Improvement XL or
PIXL. A member may electronically submit for
Mail Classification Schedule, as well as FOR FURTHER INFORMATION CONTACT: Kyle execution an order it represents as agent on behalf
redacted versions of the GeM Merchant Coppin, 202–268–2368. of a public customer, broker-dealer, or any other
asabaliauskas on DSK3SPTVN1PROD with NOTICES
model contract, GeM Merchant price SUPPLEMENTARY INFORMATION: The entity (‘‘PIXL Order’’) against principal interest or
against any other order (except as provided in Rule
ranges summary, and supporting United States Postal Service® hereby 1080(n)(i)(E)) it represents as agent (‘‘Initiating
financial workpapers. The Postal gives notice pursuant to 39 U.S.C. Order’’), provided it submits the PIXL order for
Service also submitted an application 3641(c)(1) that it will begin a market test electronic execution into the PIXL Auction
for non-public treatment of materials of its Global eCommerce Marketplace pursuant to Rule 1080. See Exchange Rule 1080(n).
4 Options overlying Standard and Poor’s
requesting that unredacted versions of (GeM) Merchant Solution experimental Depositary Receipts/SPDRs (‘‘SPY’’) are based on
the GeM Merchant model contract, GeM product on or after April 30, 2016. The the SPDR exchange-traded fund, which is designed
Merchant price ranges summary, and Postal Service has filed with the Postal to track the performance of the S&P 500 Index.
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Document Created: 2016-03-24 00:57:47
Document Modified: 2016-03-24 00:57:47
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Comments are due: April 11, 2016. | |
| Contact | David A. Trissell, General Counsel, at 202-789-6820. | |
| FR Citation | 81 FR 15760 |
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