New Postal Product
Federal Register: September 29, 2009 (Volume 74, Number 187)
Rules and Regulations
Page 49823-49825
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr29se09-12
POSTAL REGULATORY COMMISSION 39 CFR Part 3020
Docket No. CP2009-50; Order No. 290
New Postal Product
AGENCY: Postal Regulatory Commission.
ACTION: Final rule.
SUMMARY: The Commission is adding Global Expedited Package Services 1
(CP2008-4) to the Competitive Product List. In addition, Global
Expedited Package Services 2 will also be included as a new category.
This action is consistent with changes in a recent law governing postal operations. Republication of the lists of market dominant and competitive products is also consistent with new requirements in the law.
DATES: Effective September 29, 2009 and is applicable beginning August 28, 2009.
FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 202-789-6820 or stephen.sharfman@prc.gov.
SUPPLEMENTARY INFORMATION: Regulatory History, 74 FR 36538 (July 23, 2009).
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Introduction
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Discussion
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Ordering Paragraphs
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Introduction
In Order No. 262, the Commission authorized the inclusion of an additional Global Expedited Package Service (GEPS) contract within the
Global Expedited Package Services 1 (GEPS 1) product.\1\ The Postal
Service seeks clarification of that order.\2\ In its initial filing in this docket, the Postal Service sought to have the instant contract designated as the new baseline agreement for purposes of determining the functional equivalence of future GEPS contracts.\3\ The issue was not addressed substantively in Order No. 262. Noting that the GEPS 1 contract currently serving as the baseline will terminate and be removed from the Competitive Product List, the Postal Service requests clarification ``concerning the contract and docket number that it should use for future filings of additional contracts to be added to the GEPS 1 product.'' Request at 2. By this order, the Commission grants clarification.
\1\ See PRC Order No. 262, Order Concerning Filing of Additional
Global Expedited Package Services 1 Negotiated Services Agreement,
July 29, 2009 (Order No. 262).
\2\ United States Postal Service Response to Order No. 262
Concerning Termination Date of Additional Global Expedited Package
Services 1 Negotiated Service Agreement and Request for
Clarification, July 30, 2009, at 2 (Request). No party filed a response to the Request.
\3\ Notice of United States Postal Service Filing of
Functionally Equivalent Global Expedited Package Services 1
Negotiated Service Agreement, July 16, 2009, at 2, 7 (Notice).
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Discussion
In its initial Notice, the Postal Service asserts the new GEPS 1 contract is functionally equivalent to previous GEPS contracts, that it should be included within the GEPS 1 product, ``and it should become the new baseline agreement for determining whether future contracts are functionally equivalent.'' Notice at 2. In support of its contention that the instant contract is functionally equivalent, the Postal
Service states that it shares similar cost and market characteristics with previously filed GEPS 1 contracts. Id. at 4. It also contends that the contract meets the criteria established in Governors' Decision 08- 7. Furthermore, the Postal Service identifies various similarities with other GEPS 1 contracts, e.g., mailers are small and medium-sized businesses, the contract is for one year, and payment by permit imprint, as well as various differences, e.g., volume or postage commitments. Id. at 4-5. In addition, the Postal Service identifies various provisions, which it characterizes as minor or incidental, which differ from those contained in the initial GEPS 1 contract. These include, for example, clarifying the availability of other postal products, simplifying notice of mailing requirements, and changes not related to either party's obligation under the agreement. Id. at 5-7.
In its Notice, the Postal Service does not expand on its request that the instant contract ``be considered the baseline agreement for determining functional equivalence for additional agreements.'' Id. at 7.\4\ Apparently, because the initial GEPS 1 contract is terminating and provisions have been added to subsequent GEPS 1 contracts, the
Postal Service suggests that the instant GEPS 1 contract be designated as the baseline for purposes of determining the functional equivalence of future GEPS contracts.
\4\ The Postal Service references PRC Order No. 227 issued in
Docket No. CP2009-35 and states that ``[t]he only additional difference between the agreement currently presented in this instant docket and the one presented in Docket No. CP2009-35 is the tender provision, which is described further below. Id. at 4, n.6.
The Commission's expectation in labeling the initial GEPS contract
(in Docket No. CP2008-5) as GEPS 1 was that it would be followed sequentially by additional GEPS contracts, e.g., GEPS 2, GEPS 3, etc., that exhibited sufficient variation from the initial contract to warrant being classified as a new product. Given that the initial GEPS 1 contract is expiring and that the instant contract contains additional provisions, the Commission will label the latter as GEPS 2.\5\ Following the current practice, the Postal Service shall identify all significant differences between any new GEPS contract and the GEPS 2 product. Such differences would include terms and conditions that impose new obligations or new requirements on any party to the contract. The docket referenced in the caption should be Docket No.
CP2009-50, in lieu of Docket No. CP2008-4. Following the current practice, a redacted copy of Governors' Decision 08-7 should be included in the new filing along with an electronic link to it.\6\
\5\ This designation would also apply to GEPS contracts filed subsequent to the one in Docket No. CP2009-50, namely Docket Nos.
CP2009-51, CP2009-52, CP2009-53, CP2009-58, and CP2009-59.
\6\ The Postal Service requests that the Inbound Direct Entry
(IDE) contract filed in Docket No. CP2009-62 be considered the new baseline agreement for future IDE contracts. Absent a showing otherwise, the Commission intends to act on this request in a similar manner.
Future requests to implement a new baseline agreement should be filed as an MC docket since it will result in adding a new product to the product list and may result in removing a product from the product list.\7\
\7\ See e.g., Docket Nos. MC2009-34 and CP2009-24, Request of the United States Postal Service to Add Express Mail Contract 4 to
Competitive Product List and Notice of Establishment of Rates and
Class Not of General Applicability, July 6, 2009.
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Ordering Paragraphs
It is ordered: 1. The GEPS contract filed in Docket No. CP2009-50 is added to the
Competitive Product List as a new product, Global Expedited Package
Page 49824
Services 2 (Docket No. CP2009-50) under Negotiated Service Agreements,
International. 2. The additional GEPS contracts filed in Docket Nos. CP2009-51,
CP2009-52, CP2009-53, CP2009-58, and CP2009-59 will be classified as
GEPS 2 contracts and be included within the Global Expedited Package
Services 2 product (Docket No. CP2009-50). 3. The Secretary shall arrange for publication of this order in the
Federal Register.
List of Subjects in 39 CFR Part 3020
Administrative practice and procedure; Postal Service.
By the Commission.
Shoshana M. Grove,
Secretary. 0
For the reasons stated in the preamble, under the authority at 39
U.S.C. 503, the Postal Regulatory Commission amends 39 CFR part 3020 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. Revise Appendix A to Subpart A of Part 3020--Mail Classification
Schedule to read as follows:
Appendix A to Subpart A of Part 3020--Mail Classification Schedule
Part A--Market Dominant Products 1000 Market Dominant Product List
First-Class Mail
Single-Piece Letters/Postcards
Bulk Letters/Postcards
Flats
Parcels
Outbound Single-Piece First-Class Mail International
Inbound Single-Piece First-Class Mail International
Standard Mail (Regular and Nonprofit)
High Density and Saturation Letters
High Density and Saturation Flats/Parcels
Carrier Route
Letters
Flats
Not Flat-Machinables (NFMs)/Parcels
Periodicals
Within County Periodicals
Outside County Periodicals
Package Services
Single-Piece Parcel Post
Inbound Surface Parcel Post (at UPU rates)
Bound Printed Matter Flats
Bound Printed Matter Parcels
Media Mail/Library Mail
Special Services
Ancillary Services
International Ancillary Services
Address List Services
Caller Service
Change-of-Address Credit Card Authentication
Confirm
International Reply Coupon Service
International Business Reply Mail Service
Money Orders
Post Office Box Service
Negotiated Service Agreements
HSBC North America Holdings Inc. Negotiated Service Agreement
Bookspan Negotiated Service Agreement
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Inbound International
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Market Dominant Services
Market Dominant Product Descriptions
First-Class Mail
Reserved for Class Description
Single-Piece Letters/Postcards
Reserved for Product Description
Bulk Letters/Postcards
Reserved for Product Description
Flats
Reserved for Product Description
Parcels
Reserved for Product Description
Outbound Single-Piece First-Class Mail International
Reserved for Product Description
Inbound Single-Piece First-Class Mail International
Reserved for Product Description
Standard Mail (Regular and Nonprofit)
Reserved for Class Description
High Density and Saturation Letters
Reserved for Product Description
High Density and Saturation Flats/Parcels
Reserved for Product Description
Carrier Route
Reserved for Product Description
Letters
Reserved for Product Description
Flats
Reserved for Product Description
Not Flat-Machinables (NFMs)/Parcels
Reserved for Product Description
Periodicals
Reserved for Class Description
Within County Periodicals
Reserved for Product Description
Outside County Periodicals
Reserved for Product Description
Package Services
Reserved for Class Description
Single-Piece Parcel Post
Reserved for Product Description
Inbound Surface Parcel Post (at UPU rates)
Reserved for Product Description
Bound Printed Matter Flats
Reserved for Product Description
Bound Printed Matter Parcels
Reserved for Product Description
Media Mail/Library Mail
Reserved for Product Description
Special Services
Reserved for Class Description
Ancillary Services
Reserved for Product Description
Address Correction Service
Reserved for Product Description
Applications and Mailing Permits
Reserved for Product Description
Business Reply Mail
Reserved for Product Description
Bulk Parcel Return Service
Reserved for Product Description
Certified Mail
Reserved for Product Description
Certificate of Mailing
Reserved for Product Description
Collect on Delivery
Reserved for Product Description
Delivery Confirmation
Reserved for Product Description
Insurance
Reserved for Product Description
Merchandise Return Service
Reserved for Product Description
Parcel Airlift (PAL)
Reserved for Product Description
Registered Mail
Reserved for Product Description
Return Receipt
Reserved for Product Description
Return Receipt for Merchandise
Reserved for Product Description
Restricted Delivery
Reserved for Product Description
Shipper-Paid Forwarding
Reserved for Product Description
Signature Confirmation
Reserved for Product Description
Special Handling
Reserved for Product Description
Stamped Envelopes
Reserved for Product Description
Stamped Cards
Reserved for Product Description
Premium Stamped Stationery
Reserved for Product Description
Premium Stamped Cards
Reserved for Product Description
International Ancillary Services
Reserved for Product Description
International Certificate of Mailing
Reserved for Product Description
International Registered Mail
Reserved for Product Description
International Return Receipt
Reserved for Product Description
International Restricted Delivery
Reserved for Product Description
Address List Services
Reserved for Product Description
Caller Service
Reserved for Product Description
Change-of-Address Credit Card Authentication
Reserved for Product Description
Confirm
Reserved for Product Description
International Reply Coupon Service
Reserved for Product Description
International Business Reply Mail Service
Reserved for Product Description
Money Orders
Reserved for Product Description
Post Office Box Service
Reserved for Product Description
Negotiated Service Agreements
Reserved for Class Description
HSBC North America Holdings Inc. Negotiated Service Agreement
Reserved for Product Description
Bookspan Negotiated Service Agreement
Reserved for Product Description
Bank of America Corporation Negotiated Service Agreement
The Bradford Group Negotiated Service Agreement
Part B--Competitive Products 2000 Competitive Product List
Express Mail
Page 49825
Express Mail
Outbound International Expedited Services
Inbound International Expedited Services
Inbound International Expedited Services 1 (CP2008-7)
Inbound International Expedited Services 2 (MC2009-10 and
CP2009-12)
Priority Mail
Priority Mail
Outbound Priority Mail International
Inbound Air Parcel Post
Royal Mail Group Inbound Air Parcel Post Agreement
Parcel Select
Parcel Return Service
International
International Priority Airlift (IPA)
International Surface Airlift (ISAL)
International Direct Sacks--M-Bags
Global Customized Shipping Services
Inbound Surface Parcel Post (at non-UPU rates)
Canada Post--United States Postal Service Contractual Bilateral
Agreement for Inbound Competitive Services (MC2009-8 and CP2009-9)
International Money Transfer Service
International Ancillary Services
Special Services
Premium Forwarding Service
Negotiated Service Agreements
Domestic
Express Mail Contract 1 (MC2008-5)
Express Mail Contract 2 (MC2009-3 and CP2009-4)
Express Mail Contract 3 (MC2009-15 and CP2009-21)
Express Mail Contract 4 (MC2009-34 and CP2009-45)
Express Mail & Priority Mail Contract 1 (MC2009-6 and CP2009-7)
Express Mail & Priority Mail Contract 2 (MC2009-12 and CP2009- 14)
Express Mail & Priority Mail Contract 3 (MC2009-13 and CP2009- 17)
Express Mail & Priority Mail Contract 4 (MC2009-17 and CP2009- 24)
Express Mail & Priority Mail Contract 5 (MC2009-18 and CP2009- 25)
Express Mail & Priority Mail Contract 6 (MC2009-31 and CP2009- 42)
Express Mail & Priority Mail Contract 7 (MC2009-32 and CP2009- 43)
Express Mail & Priority Mail Contract 8 (MC2009-33 and CP2009- 44)
Parcel Return Service Contract 1 (MC2009-1 and CP2009-2)
Priority Mail Contract 1 (MC2008-8 and CP2008-26)
Priority Mail Contract 2 (MC2009-2 and CP2009-3)
Priority Mail Contract 3 (MC2009-4 and CP2009-5)
Priority Mail Contract 4 (MC2009-5 and CP2009-6)
Priority Mail Contract 5 (MC2009-21 and CP2009-26)
Priority Mail Contract 6 (MC2009-25 and CP2009-30)
Priority Mail Contract 7 (MC2009-25 and CP2009-31)
Priority Mail Contract 8 (MC2009-25 and CP2009-32)
Priority Mail Contract 9 (MC2009-25 and CP2009-33)
Priority Mail Contract 10 (MC2009-25 and CP2009-34)
Priority Mail Contract 11 (MC2009-27 and CP2009-37)
Priority Mail Contract 12 (MC2009-28 and CP2009-38)
Priority Mail Contract 13 (MC2009-29 and CP2009-39)
Priority Mail Contract 14 (MC2009-30 and CP2009-40)
Priority Mail Contract 15 (MC2009-35 and CP2009-54)
Priority Mail Contract 16 (MC2009-36 and CP2009-55)
Priority Mail Contract 17 (MC2009-37 and CP2009-56)
Outbound International
Direct Entry Parcels Contracts
Direct Entry Parcels 1 (MC2009-26 and CP2009-36)
Global Direct Contracts (MC2009-9, CP2009-10, and CP2009-11)
Global Expedited Package Services (GEPS) Contracts
GEPS 1 (CP2008-5, CP2008-11, CP2008-12, and CP2008-13, CP2008- 18, CP2008-19, CP2008-20, CP2008-21, CP2008-22, CP2008-23, and
CP2008-24)
Global Expedited Package Services 2 (CP2009-50)
Global Plus Contracts
Global Plus 1 (CP2008-8, CP2008-46 and CP2009-47)
Global Plus 2 (MC2008-7, CP2008-48 and CP2008-49)
Inbound International
Inbound Direct Entry Contracts with Foreign Postal
Administrations (MC2008-6, CP2008-14 and CP2008-15)
International Business Reply Service Competitive Contract 1
(MC2009-14 and CP2009-20)
Competitive Product Descriptions
Express Mail
Reserved for Group Description
Express Mail
Reserved for Product Description
Outbound International Expedited Services
Reserved for Product Description
Inbound International Expedited Services
Reserved for Product Description
Priority
Reserved for Product Description
Priority Mail
Reserved for Product Description
Outbound Priority Mail International
Reserved for Product Description
Inbound Air Parcel Post
Reserved for Product Description
Parcel Select
Reserved for Group Description
Parcel Return Service
Reserved for Group Description
International
Reserved for Group Description
International Priority Airlift (IPA)
Reserved for Product Description
International Surface Airlift (ISAL)
Reserved for Product Description
International Direct Sacks--M-Bags
Reserved for Product Description
Global Customized Shipping Services
Reserved for Product Description
International Money Transfer Service
Reserved for Product Description
Inbound Surface Parcel Post (at non-UPU rates)
Reserved for Product Description
International Ancillary Services
Reserved for Product Description
International Certificate of Mailing
Reserved for Product Description
International Registered Mail
Reserved for Product Description
International Return Receipt
Reserved for Product Description
International Restricted Delivery
Reserved for Product Description
International Insurance
Reserved for Product Description
Negotiated Service Agreements
Reserved for Group Description
Domestic
Reserved for Product Description
Outbound International
Reserved for Group Description
Part C--Glossary of Terms and Conditions [Reserved]
Part D--Country Price Lists for International Mail [Reserved]
FR Doc. E9-23488 Filed 9-28-09; 8:45 am
BILLING CODE 7710-FW-P
