[Federal Register Volume 79, Number 204 (Wednesday, October 22, 2014)]
[Notices]
[Pages 63177-63178]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25056]
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POSTAL REGULATORY COMMISSION
[Docket Nos. R2015-1; Order No. 2216]
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recent Postal Service filing
concerning a modification of a bilateral agreement with Korea Post.
This notice informs the public of the filing, invites public comment,
and takes other administrative steps.
DATES: Comments are due: October 24, 2014.
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. Commission Action
V. Ordering Paragraphs
I. Introduction
On October 15, 2014, the Postal Service filed notice of a Type 2
rate adjustment and notice of a modification (Modification One) of a
bilateral agreement with Korea Post (Agreement).\1\ The Postal Service
seeks to have Modification One included within the Inbound Market
Dominant Multi-Service Agreements with Foreign Postal Operators 1
(Foreign Postal Operators 1) product on grounds of functional
equivalence to the China Post 2010 Agreement approved in Docket No.
R2010-6 (baseline China Post Agreement). Id. at 8.
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\1\ Notice of United States Postal Service of Type 2 Rate
Adjustment, and Notice of Filing Functionally Equivalent Agreement,
October 15, 2014 (collectively, Notice). The Notice was filed
pursuant to 39 CFR 3010.40 et seq.
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II. Background
The Agreement and Modification One concern negotiated pricing for
inbound small packets with delivery scanning.\2\ Notice at 1. The
Modification amends the Agreement in two ways: It extends the term to
November 30, 2015, and revises the Financial Requirements section of
Annex 2 of the Agreement by clarifying procedures related to settlement
charges. Id. at 1-2; 5. The Postal Service expects the rate changes to
take effect December 1, 2014. Id. at 3. The Postal Service asserts that
it is presenting only an extension and a revision of the Financial
Requirements section of Annex 2 to the Agreement, which concerns
negotiated rates for an inbound market dominant product. Id. at 5.
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\2\ Docket No. R2013-9, Order Approving an Additional Inbound
Market Dominant Multi-Service Agreement with Foreign Postal
Operators 1 Negotiated Service Agreement (with Korea Post), October
30, 2013.
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III. Contents of Filing
The Postal Service's filing consists of the Notice (which includes
three attachments) and supporting financial workpapers. Attachment 1 is
the Application of the United States Postal Service for Non-Public
Treatment of Materials (Application).\3\ Attachment 2 is an unredacted
copy of Modification One. Attachment 3 is a redacted copy of the
Agreement (filed in Docket No. R2013-9). The Postal Service includes a
redacted version of the financial workpapers with its filing as a
separate public Excel file.
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\3\ The material filed under seal consists of a copy of the
Korea Post Agreement filed in Docket No. R2013-9 (Notice, Attachment
3) and supporting financial workpapers. The Application seeks
protection for the period allowed under Commission rules (ten
years). Notice, Attachment 1 at 8.
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[[Page 63178]]
The Postal Service states that the intended effective date of
Modification One is December 1, 2014; asserts that it is providing more
than the 45 days advance notice required under 39 CFR 3010.41; and
identifies the parties to Modification One as the United States Postal
Service and Korea Post, the postal operator for Korea. Id. at 3-4.
Reporting requirements. In lieu of the detailed data collection
plan required by rule 3010.43, the Postal Service proposes to report
information on Modification One through the Annual Compliance Report.
Id at 6. The Postal Service also invokes, with respect to service
performance measurement reporting under rule 3055.3(a)(3), the standing
exception in Order No. 996 for all agreements filed in the Foreign
Postal Operators 1 product grouping. Id.
Consistency with applicable statutory criteria. The Postal Service
recites the three criteria for Commission review in 39 U.S.C. 3622 and
asserts that it addresses the two it considers pertinent to this filing
(concerning whether the modification improves the Postal Service's net
financial position (or enhances the performance of operational
functions) and will not cause unreasonable harm to the marketplace).
The Postal Service asserts that the third criterion (available on
public and reasonable terms to similarly situated mailers) is not
applicable. Id. at 6-7.
Functional equivalence. The Postal Service addresses reasons why it
considers the modification functionally equivalent to the baseline
China Post Agreement, notwithstanding acknowledgement and
identification of similarities and differences. Id. at 8-10. The Postal
Service asserts that it does not consider that the specified
differences detract from the conclusion that Modification One is
functionally equivalent to the baseline China Post Agreement. Id. at
10.
IV. Commission Action
The Commission, in conformance with rule 3010.44, establishes
Docket No. R2015-1 to consider issues raised by the Notice. The
Commission invites comments from interested persons on whether
Modification One is consistent with 39 U.S.C. 3622 and the requirements
of 39 CFR part 3040. Comments are due no later than October 24, 2014.
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 John P. Klingenberg to serve as Public
Representative in this docket.
V. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. R2015-1 for consideration
of matters raised by the Postal Service's Notice.
2. Pursuant to 39 U.S.C. 505, John P. Klingenberg 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 October 24, 2014.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-25056 Filed 10-21-14; 8:45 am]
BILLING CODE 7710-FW-P