83 FR 31344 - Periodic Reporting
POSTAL REGULATORY COMMISSION Federal Register Volume 83, Issue 129 (July 5, 2018)
Federal Register Volume 83, Issue 129 (July 5, 2018)
| Page Range | 31344-31346 | |
| FR Document | 2018-14367 |
[Federal Register Volume 83, Number 129 (Thursday, July 5, 2018)] [Proposed Rules] [Pages 31344-31346] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-14367] ======================================================================= ----------------------------------------------------------------------- POSTAL REGULATORY COMMISSION 39 CFR Part 3050 [Docket No. RM2018-8; Order No. 4689] Periodic Reporting AGENCY: Postal Regulatory Commission. ACTION: Notice of proposed rulemaking. ----------------------------------------------------------------------- SUMMARY: The Commission is acknowledging a recent filing requesting the Commission initiate an informal rulemaking proceeding to consider changes to an analytical method for use in periodic reporting (Proposal Five). This document informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: August 22, 2018. [[Page 31345]] 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 III. Notice and Comment IV. Ordering Paragraphs I. Introduction On June 26, 2018, the Postal Service filed a petition pursuant to 39 CFR 3050.11, requesting that the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports.\1\ The Petition identifies the proposed analytical changes filed in this docket as Proposal Five. --------------------------------------------------------------------------- \1\ Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Five), June 26, 2018 (Petition). The Postal Service filed a non-public library reference with Proposal Five. Library Reference USPS-RM2018-8/NP1, Nonpublic Material Relating to Proposal Five, June 26, 2018; Notice of Filing of USPS- RM2018-8/NP1 and Application for Nonpublic Treatment, June 26, 2018. --------------------------------------------------------------------------- II. Proposal Five Background. The Postal Service states that it considered three related concerns when drafting Proposal Five. Petition, Proposal Five at 1. First, the Postal Service notes that, beginning January 1, 2018, the Universal Postal Union (UPU) \2\ implemented ``format'' or shape based terminal dues.\3\ The UPU separates its letter post mailpieces into three formats: Small letters (format Petit (P)), large letters, also called ``flats,'' (format Grand (G)), and bulky letters and small packets (format Encombrant (E)). Id. at 1-2. The recent change to the UPU terminal dues system applies separate terminal dues for the combined letter and flat (formats P and G) dispatches, format E dispatches, and for dispatches that contain mailpieces from all three formats (Mixed).\4\ --------------------------------------------------------------------------- \2\ The UPU is a United Nations specialized agency comprising 192 member countries, including the United States. Member countries negotiate international agreements governing the exchange of international mail, including applicable rates for the delivery of international mail. \3\ Petition, Proposal Five at 1. Terminal dues are also referred to as default UPU rates, because they apply in the absence of an agreement between or among postal operators establishing other rates. \4\ Id. at 2. The UPU separates its member countries into four country groups (Groups I-IV) based on each member country's Gross National Income and the development of its postal system. Decisions of the 26th Congress other than those amending the Acts (resolutions, decisions, recommendations, formal opinions, etc.) (2017), Annex 2, Classification of countries and territories for terminal dues and Quality of Service Fund (QSF) purposes available at http://www.upu.int/uploads/tx_sbdownloader/actsLastCongressActsEn.pdf. Then the UPU separates these country groups into two systems (Target and Transition). Designated postal operators of Target System member countries that send large volumes of UPU Letter Post mailpieces are required to sort their UPU Letter Post mailpieces by shape (formats P and G dispatches and format E dispatches). Designated postal operators of smaller volume Target System member countries and Transition System member countries may opt to separate their UPU Letter Post mailpieces by shape. --------------------------------------------------------------------------- Second, the Postal Service states that Proposal Five addresses issues raised in the Postal Service's response to Chairman's Information Request No. 10, question 6 in Docket No. ACR2017.\5\ CHIR No. 10, question 6 requested the Postal Service to ``identify and discuss the factors that increased processing, delivery, and other costs for Inbound Letter Post in [Fiscal Year (FY)] 2017.'' \6\ In its response to CHIR No. 10, question 6, the Postal Service discussed shape-based cost trends for a market dominant negotiated service agreement, Inbound Market Dominant PRIME Tracked Service Agreement, to explain the increased Inbound Letter Post cost. Responses to CHIR No. 10, question 6. CHIR No. 18 asked why the Postal Service did not incorporate the shape-based information into the Domestic Processing Model and the International Cost and Revenue Analysis (ICRA) report.\7\ In its response, the Postal Service explained that it could not apply the shape-based ratios developed for the financial workpapers for inbound international negotiated service agreements to the Domestic Processing Model or the ICRA report without additional data and development.\8\ The Postal Service indicated that it was investigating a shape-based approach to the Domestic Processing Model and planned to complete its investigation and file a proposal to incorporate a shape- based approach into the Domestic Processing Model and the ICRA report in FY 2018.\9\ --------------------------------------------------------------------------- \5\ Id. See Docket No. ACR2017, Responses of the United States Postal Service to Questions 1-7 of Chairman's Information Request No. 10, question 6, February 2, 2018 (Responses to CHIR No. 10). \6\ Docket No. ACR2017, Chairman's Information Request No. 10 and Notice of Filing Under Seal, question 6, January 26, 2018 (CHIR No. 10). \7\ Chairman's Information Request No. 18, question 1, February 13, 2018. \8\ Responses of the United States Postal Service to Questions 1-2 of Chairman's Information Request No. 18, question 1, February 20, 2018 (Response to CHIR No. 18). \9\ Petition, Proposal Five at 2-3; see Response to CHIR No. 18, questions 1.a., 1.c. --------------------------------------------------------------------------- Third, the Postal Service contends that Proposal Five responds to a directive in the FY 2017 Annual Compliance Determination report (ACD). Petition, Proposal Five at 3. In the FY 2017 ACD, the Commission directed the Postal Service to file an update on its investigation of using shape-based data to develop Inbound Letter Post costs within 90 days of the FY 2017 ACD, if the Postal Service had not yet filed a ``rulemaking proposal to implement shape-based costing for Inbound Letter Post in the Domestic Processing Model and the ICRA.'' \10\ --------------------------------------------------------------------------- \10\ Id. See Annual Compliance Determination Report, Fiscal Year 2017, March 29, 2018, at 69 (FY 2017 ACD). --------------------------------------------------------------------------- Proposal. The Postal Service states that Proposal Five will replace the current methodology with the development of separate inbound costs for letter and flats (formats P and G) and for bulky letters and small packets (format E). Petition, Proposal Five at 3. The Postal Service states that the ICRA report format will not change, but ``the aggregated costs shown on the individual ICRA lines would be the sum of the separately-developed letter/flat-shape and packet-shaped costs.'' Id. Rationale and impact. The Postal Service states that the current methodology does not align with what is now the UPU terminal dues structure. Id. Additionally, the Postal Service explains that the proposed methodology will provide better data from which the Commission may analyze the new UPU terminal dues rate structure and analyze the various components of the Inbound Letter Post product. Id. at 4. The Postal Service identifies the likely effects of Proposal Five on the development of the ICRA report in non-public Excel file ``Attachment1.xls.'' The Postal Service provides cell-by-cell differences between the proposed methodology and the data provided in the ICRA as part of the Postal Service's annual compliance report for FY 2017. Id. III. Notice and Comment The Commission establishes Docket No. RM2018-8 for consideration of matters raised by the Petition. More information on the Petition may be accessed via the Commission's website at http://www.prc.gov. Interested persons may submit comments on the Petition and Proposal Five no later than August 22, 2018. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin is designated as an officer of the Commission (Public Representative) to represent the [[Page 31346]] interests of the general public in this proceeding. IV. Ordering Paragraphs It is ordered: 1. The Commission establishes Docket No. RM2018-8 for consideration of the matters raised by the Petition of the United States Postal Service for the Initiation of a Proceeding to Consider Proposed Changes in Analytical Principles (Proposal Five), filed June 26, 2018. 2. Comments by interested persons in this proceeding are due no later than August 22, 2018. 3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. Clendenin 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. Stacy L. Ruble, Secretary. [FR Doc. 2018-14367 Filed 7-3-18; 8:45 am] BILLING CODE 7710-FW-P
![31344 Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Proposed Rules
To see the changes to the ADDRESSES meeting or the proposed rule, please call behalf of an association, business, labor
section of the proposed rule, refer to the or email LT Joseph Palmquist, Coast union, etc.). You may review a Privacy
ADDRESSES section of this notice. Guard; telephone 912–652–4353 ext. Act notice regarding our public dockets
221, email joseph.b.palmquist@uscg.mil. in the March 24, 2005, issue of the
Joseph R. Balash,
SUPPLEMENTARY INFORMATION: Federal Register (70 FR 15086).
Assistant Secretary—Land and Minerals
Management, U.S. Department of the Interior. I. Background and Purpose II. Information on Service for
[FR Doc. 2018–14483 Filed 7–2–18; 11:15 am] Individuals With Disabilities
We are announcing a public meeting
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potential revision of the rule titled services for individuals with disabilities
‘‘Regulated Navigation Area; Savannah or to request special assistance at the
DEPARTMENT OF HOMELAND River, Georgia’’ that was published in public meeting, contact LT Joseph
SECURITY the Federal Register on September 10, Palmquist at the telephone number or
2007 (72 FR 51555). That rule email address indicated under the FOR
Coast Guard established a regulated navigation area FURTHER INFORMATION CONTACT section of
around the Southern LNG facility on the this notice.
33 CFR Part 165 Savannah River. Since the previous rule III. Public Meeting
[Docket Number USCG–2018–0648] has been published, there have been
changes both to the facility layout and The Coast Guard will hold a public
Regulated Navigation Area; Savannah to the types of vessels that make calls to meeting to receive comments to
River, Georgia the facility. The purpose of this public potentially revise the rule titled
meeting is to determine the need to ‘‘Regulated Navigation Area; Savannah
AGENCY: Coast Guard, DHS. River, Georgia’’ that was published in
revise the regulated navigation area to
ACTION: Notice of public meeting; address changes at the facility. We have the Federal Register on September 10,
request for comments. received multiple requests and have 2007 (72 FR 51555). The meeting will
concluded that a public meeting would take place on July 25, 2018 from 10 a.m.
SUMMARY: The Coast Guard announces a
aid in determining whether to propose to 12 p.m. at Juliette Gordon Low
public meeting to receive comments on
a rulemaking. Therefore, we are Federal Building, 100 W Oglethorpe
a proposal to revise a rule entitled
publishing this notice. Avenue, First Floor, Marine Safety Unit
‘‘Regulated Navigation Area; Savannah
You may view the current rule, 33 Savannah Training Room, Savannah,
River, Georgia’’, which was published in
CFR 165.756, by going to http:// GA 31401, telephone 912–652–4353.
the Federal Register on September 10,
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2007 (72 FR 51555). The purpose of this
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address changes at the facility.
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DATES: A public meeting will be held on screenings. There is no parking at the
Wednesday, July 25, 2018 from 10 a.m. comments submitted thus far by going
to http://www.regulations.gov. Once building; there are various parking
to 12 p.m. to provide an opportunity for garages that are within walking distance
oral comments. Written comments and there, insert ‘‘USCG–2018–0648’’ in the
‘‘Keyword’’ box and click ‘‘Search’’. to the building.
related material may also be submitted
We encourage you to participate by Dated: June 28, 2018.
to Coast Guard personnel specified at
submitting comments either orally at the N.C. Witt,
that meeting. Comments and related
meeting or in writing. If you bring Commander, U.S. Coast Guard Captain of
material must be received by the Coast
written comments to the meeting, you the Port Savannah.
Guard on or before August 15, 2018.
may submit them to Coast Guard [FR Doc. 2018–14356 Filed 7–3–18; 8:45 am]
ADDRESSES: The public meeting will be personnel specified at the meeting to
held at the Juliette Gordon Low Federal BILLING CODE 9110–04–P
receive written comments. These
Building, 100 W Oglethorpe Avenue, comments will be submitted to our
First Floor, Marine Safety Unit online public docket. All comments
Savannah Training Room, Savannah, POSTAL REGULATORY COMMISSION
received will be posted without change
GA 31401, telephone 912–652–4353. A to http://www.regulations.gov and will
valid government-issued photo 39 CFR Part 3050
include any personal information you
identification will be required for have provided. [Docket No. RM2018–8; Order No. 4689]
entrance to the building, and all visitors Comments submitted after the
are subject to security screenings. meeting must reach the Coast Guard on Periodic Reporting
This meeting is open to the public. or before August 15, 2018. We AGENCY: Postal Regulatory Commission.
Seating is limited, so please RSVP as encourage you to submit comments ACTION: Notice of proposed rulemaking.
soon as possible, but no later than July through the Federal eRulemaking Portal
15, 2018. Please fill out the RSVP form at http://www.regulations.gov. If your SUMMARY: The Commission is
using the following link https:// material cannot be submitted using acknowledging a recent filing requesting
einvitations.afit.edu/inv/anim.cfm?i= http://www.regulations.gov, contact the the Commission initiate an informal
amozie on DSK3GDR082PROD with PROPOSALS1
407259&k=0661450B7E5E. person in the FOR FURTHER INFORMATION rulemaking proceeding to consider
You may submit written comments CONTACT section of this document for changes to an analytical method for use
online by searching docket number alternate instructions. in periodic reporting (Proposal Five).
USCG–2018–0648 using the Federal Anyone can search the electronic This document informs the public of the
eRulemaking Portal at http:// form of comments received into any of filing, invites public comment, and
www.regulations.gov. our dockets by the name of the takes other administrative steps.
FOR FURTHER INFORMATION CONTACT: If individual submitting the comment (or DATES: Comments are due: August 22,
you have questions concerning the signing the comment, if submitted on 2018.
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![Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Proposed Rules 31345
ADDRESSES: Submit comments dispatches that contain mailpieces from Processing Model and the ICRA report
electronically via the Commission’s all three formats (Mixed).4 in FY 2018.9
Filing Online system at http:// Second, the Postal Service states that Third, the Postal Service contends
www.prc.gov. Those who cannot submit Proposal Five addresses issues raised in that Proposal Five responds to a
comments electronically should contact the Postal Service’s response to directive in the FY 2017 Annual
the person identified in the FOR FURTHER Chairman’s Information Request No. 10, Compliance Determination report
INFORMATION CONTACT section by question 6 in Docket No. ACR2017.5 (ACD). Petition, Proposal Five at 3. In
telephone for advice on filing CHIR No. 10, question 6 requested the the FY 2017 ACD, the Commission
alternatives. Postal Service to ‘‘identify and discuss directed the Postal Service to file an
the factors that increased processing, update on its investigation of using
FOR FURTHER INFORMATION CONTACT: delivery, and other costs for Inbound shape-based data to develop Inbound
David A. Trissell, General Counsel, at Letter Post in [Fiscal Year (FY)] 2017.’’ 6 Letter Post costs within 90 days of the
202–789–6820. In its response to CHIR No. 10, question FY 2017 ACD, if the Postal Service had
SUPPLEMENTARY INFORMATION: 6, the Postal Service discussed shape- not yet filed a ‘‘rulemaking proposal to
based cost trends for a market dominant implement shape-based costing for
Table of Contents negotiated service agreement, Inbound Inbound Letter Post in the Domestic
I. Introduction Market Dominant PRIME Tracked Processing Model and the ICRA.’’ 10
II. Proposal Five Service Agreement, to explain the Proposal. The Postal Service states
III. Notice and Comment increased Inbound Letter Post cost. that Proposal Five will replace the
IV. Ordering Paragraphs Responses to CHIR No. 10, question 6. current methodology with the
I. Introduction CHIR No. 18 asked why the Postal development of separate inbound costs
Service did not incorporate the shape- for letter and flats (formats P and G) and
On June 26, 2018, the Postal Service based information into the Domestic for bulky letters and small packets
filed a petition pursuant to 39 CFR Processing Model and the International (format E). Petition, Proposal Five at 3.
3050.11, requesting that the Cost and Revenue Analysis (ICRA) The Postal Service states that the ICRA
Commission initiate a rulemaking report.7 In its response, the Postal report format will not change, but ‘‘the
proceeding to consider changes to Service explained that it could not aggregated costs shown on the
analytical principles relating to periodic apply the shape-based ratios developed individual ICRA lines would be the sum
reports.1 The Petition identifies the for the financial workpapers for of the separately-developed letter/flat-
proposed analytical changes filed in this inbound international negotiated service shape and packet-shaped costs.’’ Id.
docket as Proposal Five. agreements to the Domestic Processing Rationale and impact. The Postal
Model or the ICRA report without Service states that the current
II. Proposal Five methodology does not align with what
additional data and development.8 The
Background. The Postal Service states Postal Service indicated that it was is now the UPU terminal dues structure.
that it considered three related concerns investigating a shape-based approach to Id. Additionally, the Postal Service
when drafting Proposal Five. Petition, the Domestic Processing Model and explains that the proposed methodology
Proposal Five at 1. First, the Postal planned to complete its investigation will provide better data from which the
Service notes that, beginning January 1, and file a proposal to incorporate a Commission may analyze the new UPU
2018, the Universal Postal Union shape-based approach into the Domestic terminal dues rate structure and analyze
(UPU) 2 implemented ‘‘format’’ or shape the various components of the Inbound
based terminal dues.3 The UPU 4 Id. at 2. The UPU separates its member countries Letter Post product. Id. at 4. The Postal
separates its letter post mailpieces into into four country groups (Groups I–IV) based on Service identifies the likely effects of
each member country’s Gross National Income and Proposal Five on the development of the
three formats: Small letters (format Petit the development of its postal system. Decisions of
(P)), large letters, also called ‘‘flats,’’ the 26th Congress other than those amending the
ICRA report in non-public Excel file
(format Grand (G)), and bulky letters Acts (resolutions, decisions, recommendations, ‘‘Attachment1.xls.’’ The Postal Service
and small packets (format Encombrant formal opinions, etc.) (2017), Annex 2, provides cell-by-cell differences
(E)). Id. at 1–2. The recent change to the
Classification of countries and territories for between the proposed methodology and
terminal dues and Quality of Service Fund (QSF) the data provided in the ICRA as part of
UPU terminal dues system applies purposes available at http://www.upu.int/uploads/
separate terminal dues for the combined tx_sbdownloader/actsLastCongressActsEn.pdf. the Postal Service’s annual compliance
letter and flat (formats P and G) Then the UPU separates these country groups into report for FY 2017. Id.
two systems (Target and Transition). Designated
dispatches, format E dispatches, and for postal operators of Target System member countries III. Notice and Comment
that send large volumes of UPU Letter Post The Commission establishes Docket
1 Petition of the United States Postal Service for mailpieces are required to sort their UPU Letter Post
mailpieces by shape (formats P and G dispatches No. RM2018–8 for consideration of
the Initiation of a Proceeding to Consider Proposed
Changes in Analytical Principles (Proposal Five), and format E dispatches). Designated postal matters raised by the Petition. More
June 26, 2018 (Petition). The Postal Service filed a operators of smaller volume Target System member information on the Petition may be
non-public library reference with Proposal Five. countries and Transition System member countries accessed via the Commission’s website
Library Reference USPS–RM2018–8/NP1, may opt to separate their UPU Letter Post
mailpieces by shape. at http://www.prc.gov. Interested
Nonpublic Material Relating to Proposal Five, June
26, 2018; Notice of Filing of USPS–RM2018–8/NP1 5 Id. See Docket No. ACR2017, Responses of the persons may submit comments on the
and Application for Nonpublic Treatment, June 26, United States Postal Service to Questions 1–7 of Petition and Proposal Five no later than
2018. Chairman’s Information Request No. 10, question 6, August 22, 2018. Pursuant to 39 U.S.C.
amozie on DSK3GDR082PROD with PROPOSALS1
2 The UPU is a United Nations specialized agency February 2, 2018 (Responses to CHIR No. 10). 505, Katalin K. Clendenin is designated
6 Docket No. ACR2017, Chairman’s Information
comprising 192 member countries, including the as an officer of the Commission (Public
United States. Member countries negotiate Request No. 10 and Notice of Filing Under Seal,
international agreements governing the exchange of question 6, January 26, 2018 (CHIR No. 10). Representative) to represent the
international mail, including applicable rates for 7 Chairman’s Information Request No. 18,
the delivery of international mail. question 1, February 13, 2018. 9 Petition, Proposal Five at 2–3; see Response to
3 Petition, Proposal Five at 1. Terminal dues are 8 Responses of the United States Postal Service to CHIR No. 18, questions 1.a., 1.c.
also referred to as default UPU rates, because they Questions 1–2 of Chairman’s Information Request 10 Id. See Annual Compliance Determination
apply in the absence of an agreement between or No. 18, question 1, February 20, 2018 (Response to Report, Fiscal Year 2017, March 29, 2018, at 69 (FY
among postal operators establishing other rates. CHIR No. 18). 2017 ACD).
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![31346 Federal Register / Vol. 83, No. 129 / Thursday, July 5, 2018 / Proposed Rules
interests of the general public in this Table of Contents when calculating distribution factors.
proceeding. I. Introduction Id. This assumes that transactions made
II. Proposal Four with debit and credit cards are similar,
IV. Ordering Paragraphs
III. Notice and Comment which is not true for every product. Id.
It is ordered: IV. Ordering Paragraphs For example, Priority Mail generates
1. The Commission establishes Docket more revenue from credit card
No. RM2018–8 for consideration of the I. Introduction purchases than debit cards. Id.
matters raised by the Petition of the On June 25, 2018, the Postal Service Conversely, Money Orders cannot be
United States Postal Service for the filed a petition pursuant to 39 CFR purchased using credit cards. Id.
Initiation of a Proceeding to Consider 3050.11, requesting that the The Postal Service asserts that when
Proposed Changes in Analytical Commission initiate a rulemaking calculating a distribution key, the type
Principles (Proposal Five), filed June 26, proceeding to consider changes to of card used (debit or credit) becomes
2018. analytical principles relating to periodic more important because total credit card
2. Comments by interested persons in reports.1 The Petition identifies the fees are almost four times greater than
this proceeding are due no later than proposed analytical principles changes total debit card fees. Id. Because of this
August 22, 2018. filed in this docket as Proposal Four. incorrect assumption, the current
3. Pursuant to 39 U.S.C. 505, the methodology misallocates expenses
II. Proposal Four
Commission appoints Katalin K. related to debit and credit card fees,
Clendenin to serve as an officer of the Background. Proposal Four would especially for products that are more
Commission (Public Representative) to change the costing methodology for heavily purchased by one card type. Id.
assigning expenses related to debit card The second flaw in the current
represent the interests of the general
transactions in the component named methodology identified by the Postal
public in this docket.
Retail Credit Card Fees (Component No. Service is that the distribution factors
4. The Secretary shall arrange for
126) in Cost Segment 13. Petition, do not fully align with actual expenses
publication of this Order in the Federal
Proposal Four at 1. Debit card incurred from the usage of debit and
Register.
transactions, which are purchases made credit cards. Id. at 2. For example, for
By the Commission. using debit cards, incur fees that Money Order transactions, the Postal
Stacy L. Ruble, merchants pay to the debit card issuer.2 Service charges the customer the face
Secretary. For example, when a customer value of the Money Order plus a Special
[FR Doc. 2018–14367 Filed 7–3–18; 8:45 am] purchases a product or service from the Services fee. Id. When calculating the
BILLING CODE 7710–FW–P Postal Service using a debit card, the Money Order share of total ‘‘revenue’’
Postal Service pays the debit card issuer for distribution purposes, the current
a fee for each transaction. methodology only considers the Special
POSTAL REGULATORY COMMISSION In Docket No. RM2015–4, the Services fee the Postal Service charges
Commission approved the current the customer. Id. The Postal Service
39 CFR Part 3050 methodology for assigning expenses asserts that this methodology is
related to credit and debit card erroneous because the amount the
[Docket No. RM2018–7; Order No. 4685] transactions.3 The current methodology Postal Service pays to the debit card
treats these expenses as fully volume provider is based on the entire
Periodic Reporting variable and assigns them to products in transaction amount, including the face
the same proportions as the Postal value of the money order, rather than
AGENCY: Postal Regulatory Commission. Service revenue realized from aggregate just the Special Services fee charged. Id.
ACTION: Notice of proposed rulemaking. credit and debit card transactions. To address these two flaws in the
Petition, Proposal Four at 1. When current methodology, the Postal Service
SUMMARY: The Commission is noticing a preparing the FY 2017 Annual made two corrections to Library
recent filing requesting that the Compliance Report (ACR), the Postal Reference USPS–FY17–32, which was
Commission initiate an informal Service explains that it recognized two filed with the FY 2017 ACR.4 First, the
rulemaking proceeding to consider flaws in the current methodology. Id. Postal Service separated credit and debit
changes to an analytical method for use First, the current methodology uses the card fees to develop different sets of
in periodic reporting (Proposal Four). total of both credit and debit card fees distribution factors for these fees.
This document informs the public of the
Petition, Proposal Four at 2. Second, the
filing, invites public comment, and 1 Petition of the United States Postal Service for
set of distribution factors for debit cards
takes other administrative steps. the Initiation of a Proceeding to Consider Proposed
Changes in Analytical Principles (Proposal Four),
used the aggregate face value of Money
DATES: Comments are due: July 23, Orders purchased with debit cards in
June 25, 2018 (Petition).
2018. 2 One type of fee that may be incurred when using conjunction with the revenue from all
ADDRESSES: Submit comments a debit card is an interchange fee, which is the other products. Id.
largest categorical contributor to total debit card In a supplemental Chairman’s
electronically via the Commission’s processing fees for a transaction. Id. at 5. A
Filing Online system at http:// merchant pays an interchange fee to the debit card Information Request (CHIR) response,
www.prc.gov. Those who cannot submit issuer whenever a customer makes a purchase using the Postal Service proposed a model
comments electronically should contact a debit card. See 12 CFR 235.2(j) (defining attempting to account for the recognized
‘‘interchange transaction fee’’ as ‘‘any fee major components of debit card fees.5 In
the person identified in the FOR FURTHER
amozie on DSK3GDR082PROD with PROPOSALS1
established, charged, or received by a payment card
INFORMATION CONTACT section by network and paid by a merchant or an acquirer for the FY 2017 Annual Compliance
telephone for advice on filing the purpose of compensating an issuer for its
involvement in an electronic debit transaction.’’). 4 Id.; see Docket No. ACR2017, Library Reference
alternatives.
The debit card fees referred to in the Petition and USPS–FY17–32, December 29, 2017.
FOR FURTHER INFORMATION CONTACT: this Order are interchange fees. 5 Id. at 2–3; see Docket No. ACR2017,
3 Petition, Proposal Four at 1; see Docket No. Supplemental Response of the United States Postal
David A. Trissell, General Counsel, at
RM2015–4, Order Approving Analytical Principle Service to Question 1.b of Chairman’s Information
202–789–6820. Used in Periodic Reporting (Proposal Eleven), Request No. 2, February 23, 2018 (Response to CHIR
SUPPLEMENTARY INFORMATION: February 9, 2015 (Order No. 2350). No. 2, Question 1.b).
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Document Created: 2018-07-03 23:40:01
Document Modified: 2018-07-03 23:40:01
| 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 | Proposed Rules | |
| Action | Notice of proposed rulemaking. | |
| Dates | Comments are due: August 22, 2018. | |
| Contact | David A. Trissell, General Counsel, at 202-789-6820. | |
| FR Citation | 83 FR 31344 |
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