Mail Classification Schedule

 
CONTENT
Federal Register, Volume 84 Issue 93 (Tuesday, May 14, 2019)
[Federal Register Volume 84, Number 93 (Tuesday, May 14, 2019)]
[Proposed Rules]
[Pages 21304-21305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09853]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3020
[Docket No. RM2019-3; Order No. 5088]
Mail Classification Schedule
AGENCY: Postal Regulatory Commission.
ACTION: Proposed rulemaking.
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SUMMARY: The Commission is proposing an amendment to its rules
involving the information the Postal Service must provide when updating
the size and weight limitations applicable to market dominant mail
matter. The Commission invites public comment on the proposed
revisions.
DATES: Comments are due: June 13, 2019.
ADDRESSES: For additional information, Order No. 5088 can be accessed
electronically through the Commission's website at https://www.prc.gov.
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. Background
II. Basis and Purpose of Proposed Rules
III. Proposed Rules
I. Background
    The Commission initiated this proceeding to explore updating its
regulations to address proposed classification changes to product
descriptions in the Mail Classification Schedule (MCS) that may modify
the market dominant and/or competitive product lists. The Commission
sought comments from interested parties on whether it should update its
regulations to require information pursuant to section 3642 when
changes to the size and weight limitations appear to modify the product
lists.
II. Basis and Purpose of Proposed Rules
    Currently, Sec.  3020.111(a) requires the Postal Service to file a
notice with the Commission 45 days prior to the effective date of the
proposed update to size and weight limitations for market dominant mail
matter. The notice must include a copy of the applicable sections of
the MCS and the proposed updates therein in legislative format. 39 CFR
3020.111(a). The Commission evaluates the proposals in accordance with
the policies and the applicable criteria of chapter 36 of title 39 of
the United States Code. 39 CFR 3020.111(c). To assist the Commission in
its review, the Postal Service has explained in previous notices how
the proposed update is in accordance with the policies and applicable
criteria of chapter 36 of title 39 of the United States Code.\1\
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    \1\ See, e.g., Docket No. MC2019-3, Notice of the United States
Postal Service of Update to the Maximum Weight Limit for Outbound
Single-Piece First-Class Mail International Large Envelopes (Flats)
in the Mail Classification Schedule, October 10, 2018, at 3-6.
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    The Commission instituted this proceeding to evaluate whether this
information is sufficient to address instances where a proposed update
to size and weight limitations appears to modify the product lists
without proper Commission oversight. In particular, the Commission is
concerned with changes that may camouflage an unreasonable price
increase, materially harm users or competitors, or otherwise constitute
an abuse of market power. Accordingly, the Commission proposes that
Sec.  3020.111(a) be amended to include the requirement that the Postal
Service explain if a proposed update to a size or weight limitation
will adversely affect users and competitors. The Commission also
proposes to add a requirement that the Postal Service explain how a
size and weight limitation change is in accordance with the policies
and applicable criteria of chapter 36 of title 39 of the United States
Code, as consistent with the Postal Service's current practice.
    The proposed amendment would not be overly burdensome to the Postal
Service, as it does not require the information necessary for a section
3642 review, such as establishing a lack of market power over the
volume of mail that would be affected by the change. In practice, the
Postal Service already explains how a size and weight limitation change
complies with the statutes and rules. The requirement to explain the
potential effects of the change on users and competitors in its notice
is consistent with the requirements for material changes to product
descriptions. See 39 CFR 3020.81(c).
    By requiring the Postal Service to explain the potential effects of
a size and weight limitation change, the proposed amendment addresses
the concern that updates to size and weight limitations could
materially impact users of the product and competitors. The proposed
amendment also allows the Commission to evaluate whether the size and
weight limitation update effectively modifies the product lists.
Furthermore, although it would be required to explain the potential
effects of the size/weight limitation, the Postal Service could also
describe any mitigating factors or explain explicitly why the change
would not modify the product lists.
[[Page 21305]]
    Receiving this information at the outset of the proceeding promotes
transparency with the Commission and the public on the potential
effects of a size and weight limitation change. Moreover, by receiving
this information in the notice, the Commission can more efficiently
evaluate a size/weight limitation change within the 45-day statutory
deadline by limiting information requests on potential harm to users
and competitors. Thus, the proposed amendment will assist the
Commission in evaluating whether a size and weight limitation is in
accordance with the policies and the applicable criteria of chapter 36
of title 39 of the United States Code.
III. Proposed Rules
    The Commission proposes to revise Sec.  3020.111(a) to require
additional information that the Postal Service must file with a notice
of an update to size and weight limitations for market dominant mail
matter.
List of Subjects for 39 CFR Part 3020
    Administrative practice and procedure, Postal Service.
    For the reasons stated in the preamble, the Commission proposes to
amend chapter III of title 39 of the Code of Federal Regulations as
follows:
PART 3020--PRODUCT LISTS
0
1. The authority citation for part 3020 continues to read as follows:
    Authority: 39 U.S.C. 503, 3622, 3631, 3642, 3682.
0
2. Amend Sec.  3020.111, by revising paragraph (a) to read as follows:
Sec.  3020.111  Limitations applicable to market dominant mail matter.
    (a) The Postal Service shall inform the Commission of updates to
size and weight limitations for market dominant mail matter by filing
notice with the Commission 45 days prior to the effective date of the
proposed update. The notice shall:
    (1) Include a copy of the applicable sections of the Mail
Classification Schedule and the proposed updates therein in legislative
format;
    (2) Describe the likely impact that the proposed update will have
on users of the product(s) and on competitors; and
    (3) Describe how the proposed update is in accordance with the
policies and the applicable criteria of chapter 36 of title 39 of the
United States Code.
* * * * *
    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2019-09853 Filed 5-13-19; 8:45 am]
BILLING CODE 7710-FW-P