83 FR 60906 - New Postal Product

POSTAL REGULATORY COMMISSION

Federal Register Volume 83, Issue 228 (November 27, 2018)

The Commission is recognizing a recent Postal Service filing requesting that Inbound Letter Post small packets and bulky letter, and inbound registered services associated with such items, be transferred from the market dominant product list to the competitive product list. This document informs the public of the filing, invites public comment, and takes other administrative steps.

[Federal Register Volume 83, Number 228 (Tuesday, November 27, 2018)]
[Notices]
[Page 60906]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25708]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2019-17; Order No. 4883]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recent Postal Service filing 
requesting that Inbound Letter Post small packets and bulky letter, and 
inbound registered services associated with such items, be transferred 
from the market dominant product list to the competitive product list. 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: December 10, 2018.

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. Commission Action
III. Ordering Paragraphs

I. Introduction

    On November 16, 2018, the Postal Service filed a notice with the 
Commission pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., 
requesting that Inbound Letter Post small packets and bulky letters, 
and inbound registered service associated with such items, be 
transferred from the market dominant product list to the competitive 
product list.\1\ In support of its Request, the Postal Service filed 
the following documents:
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    \1\ United States Postal Service Request to Transfer Inbound 
Letter Post Small Packets and Bulky Letters, and Inbound Registered 
Service Associated with Such Items, to the Competitive Product List, 
November 16, 2018 (Request).
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     Attachment A--Statement of Supporting Justification;
     Attachment B--Draft Mail Classification Schedule (MCS) 
Language; and
     Attachment C--Resolution of the Governors of the United 
States Postal Service, November 13, 2018 (Resolution No. 18-9).
    The Postal Service asserts that the new Inbound Letter Post Small 
Packets and Bulky Letters product fulfills all of the criteria for 
competitive products under section 3642. See Request at 5-8. 
Specifically, the Postal Service states that mailers use Inbound Letter 
Post small packets and bulky letters to ship goods as an alternative to 
competitive parcel products offered by the Postal Service or private 
delivery service companies and that such mailers have multiple postal 
and commercial options. Id. at 5, 7. The Postal Service notes that its 
``share of the relevant market falls below the threshold for market 
dominance.'' Id. at 7.
    In addition, the Postal Service states that the Private Express 
Statutes (PES) do not apply to the Inbound Letter Post Small Packets 
and Bulky Letters product because: (1) Documents that are combined with 
goods are likely invoices or advertising materials that are exempt from 
PES; (2) most Inbound Letter Post Small Packets and Bulky Letters 
mailpieces will weigh more than the 12.5 ounce threshold and will 
likely be exempt from PES; and (3) the Postal Service is likely to 
propose prices for the Inbound Letter Post Small Packets and Bulky 
Letters product that are at least six times the price charged for a 1-
ounce First-Class Mail Single-Piece Letters mailpiece. Id. at 10-11.
    The Postal Service notes that prices for the Inbound Letter Post 
Small Packets and Bulky Letters product have not been determined but 
expects such prices to be ``fully remunerative and provide healthy 
contribution to institutional costs[,]'' thereby satisfying 39 U.S.C. 
3633(a)(1) and (2).\2\ Furthermore, the Postal Service asserts that 
after the addition of the Inbound Letter Post Small Packets and Bulky 
Letters product, competitive products, as a whole, will continue to 
contribute at least 5.5 percent towards total institutional costs. Id.; 
see 39 U.S.C. 3633(a)(3), 39 CFR 3015.7.
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    \2\ Id. at 9. The Postal Service states that it has not declared 
an implementation date and expects that the transfer will be 
effective when the self-declared prices go into effect or as 
otherwise determined by the Postal Service Board of Governors. Id.
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    The Postal Service also asserts that transferring Inbound Letter 
Post small packets and bulky letters from the market dominant product 
list to the competitive product list will improve consistency between 
inbound and outbound products. Request at 12. Specifically, the Postal 
Service notes that ``outbound international products analogous to those 
at issue here'' are already on the competitive product list, as are 
Inbound Air and Surface Parcel Post, which are similar to Inbound 
Letter Post small packets and bulky letters. Id.

II. Commission Action

    The Commission establishes Docket No. MC2019-17 to consider the 
Postal Service's proposals described in its Request. Interested persons 
may submit comments on whether the Request is consistent with the 
policies of 39 U.S.C. 3632, 3633, and 3642 and 39 CFR 3020.30 et seq. 
Comments are due by December 10, 2018.
    The Request and related filings are available on the Commission's 
website (http://www.prc.gov). The Commission encourages interested 
persons to review the Request for further details.
    The Commission appoints Kenneth E. Richardson to serve as Public 
Representative in this proceeding.

III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2019-17 for 
consideration of the matters raised by the United States Postal Service 
Request to Transfer Inbound Letter Post Small Packets and Bulky 
Letters, and Inbound Registered Service Associated with Such Items, to 
the Competitive Product List, filed November 16, 2018.
    2. Pursuant to 39 U.S.C. 505, Kenneth E. Richardson 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 are due by December 10, 2018.
    4. The Secretary shall arrange for publication of this Order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018-25708 Filed 11-26-18; 8:45 am]
 BILLING CODE 7710-FW-P