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Mc2016-168 Negotiated Service Agreements

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Mc2016-168 Negotiated Service Agreements Postal Regulatory Commission Submitted 6/16/2017 4:10:54 PM Filing ID: 100457 Accepted 6/16/2017 BEFORE THE POSTAL REGULATORY COMMISSION WASHINGTON, D.C. 20268-0001 MARKET DOMINANT PRODUCT PRICES Docket Nos. INBOUND MARKET DOMINANT REGISTERED SERVICE AGREEMENT MC2016-168 NEGOTIATED SERVICE AGREEMENTS MARKET DOMINANT PRODUCT PRICES INBOUND MARKET DOMINANT REGISTERED SERVICE AGREEMENT (MC2016-168) R2016-6 NEGOTIATED SERVICE AGREEMENT NOTICE OF UNITED STATES POSTAL SERVICE OF FILING REVISED VERSION OF INBOUND MARKET DOMINANT REGISTERED SERVICE AGREEMENT, AND APPLICATION FOR NON-PUBLIC TREATMENT (June 16, 2017) In Order No. 3471, the Postal Regulatory Commission (Commission) added Inbound Market Dominant Registered Service Agreements 1 to the market dominant product list.1 The Postal Service hereby gives notice of filing, pursuant to 39 U.S.C. § 407(d)(2), a revised Annex to the PRIME Registered Service Agreement. A redacted version of the revised Annex 6 is included as Attachment 1 to this filing, and the Postal Service has filed an unredacted version under seal with the Commission. The Postal Service previously notified the Commission of revisions to the PRIME Registered Service Agreement on February 15, 2017 and the Commission entered an Order on February 22, 2017 finding that revised agreement to be substantially similar to the agreement originally approved in this docket.2 The only differences between the 1 PRC Order No. 3471, Order Adding Inbound Market Dominant Registered Service Agreement 1 to the Market Dominant Product List and Approving Type 2 Rate Adjustment, Docket Nos. MC2016-168 and R2016-6, August 17, 2016, at 9. 2 Notice of United States Postal Service of Filing Revised Version of Inbound Market Dominant Registered Service Agreement, and Application for Non-Public Treatment, February 15, 2017, Docket Nos. MC2016-168 and R2016-6; see also PRC Order No. 3799 - Order Acknowledging Revised Version 2 text of the attached revised PRIME Registered Service Agreement and the text of the revised PRIME Registered Service Agreement included as Attachment 1 to the Postal Service’s February 15, 2017 Notice are as follows: Annex 6 List of Parties has been updated to include Georgian Post (Georgia) and LibanPost (Lebanon). The revisions to Annex 6 went into effect on May 1, 2017 for the addition of LibanPost and on June 1, 2017 for the addition of Georgian Post. The Postal Service does not consider it necessary to include revised financial workpapers with this filing because the changes to Annex 6 extend the service offered under the PRIME Registered Service Agreement to certain foreign countries but do not alter existing rates or service attributes.3 Moreover, the Postal Service notes that the cost coverage for the Inbound Market Dominant Registered Service Agreement 1 is exceptionally healthy. In good faith, the Postal Service reasonably believes that there have been no changes in circumstances that might cause the agreement’s cost coverage to change significantly.4 of Inbound Market Dominant Registered Service Agreement, February 22, 2017, Docket Nos. MC2016- 168 and R2016-6. 3 See PRC Order No. 205, Order Granting Reconsideration of Order No. 183, April 22, 2009, Docket No. MC2009-16, at 3-4. Order No. 205 found that adding additional destination countries that receive Priority Mail International flat rate envelopes and small flat rate boxes did not constitute a major change to the Mail Classification Schedule and thus did not require a filing under 39 C.F.R. § 3015. Id. Here, the changes to Annex 6 add origin countries from which the Postal Service receives items under the PRIME Registered Service Agreement. These changes are not significant, however, since all operators exchanging PRIME Registered will be subject to the same rates as all other countries for their PRIME Registered traffic. Thus, the addition of new countries will not change the revenue received under this agreement any more than if an existing country added a new customer that increased volume. 4 The Postal Service notes the June 1, 2017 Chairman’s Information Request (ChIR) for certain financial information regarding a Postal Service notice of updates to Annex 3 of the PRIME Registered Service Agreement. Chairman's Information Request No. 1, June 1, 2017, Docket No. R2016-6. The Postal Service has asked for reconsideration of that ChIR and the portion of Order No. 3471 the ChIR referenced as it may be applied to changes to the PRIME Registered Service Agreement that do not impact that agreement’s financial performance. Motion for Partial Reconsideration of Chairman's Information Request No. 1 and Order No. 3471, or, in the Alternative, Motion for Extension of Time to 3 The Postal Service incorporates by reference the application for non-public treatment that was filed in conjunction with the Postal Service’s July 13, 2016 request and notice in this docket.5 That application requests protection from disclosure of the information that has been redacted from the redacted version of the agreement that the Postal Service is filing publicly today with this notice. Respectfully submitted, UNITED STATES POSTAL SERVICE By its attorneys: Anthony F. Alverno Chief Counsel Global Business and Service Development Corporate and Postal Business Law Section Lauren B. Schuttloffel Attorney 475 L'Enfant Plaza, S.W. Washington, D.C. 20260-1101 (202) 268-4198; Fax -5628 [email protected] June 16, 2017 Submit Response of the USPS to Chairman's Information Request No. 1, June 8, 2017, Docket No. R2016-6. To the extent the Commission believes Order No. 3471 applies to the changes to Annex 6 presented in this Notice, the Postal Service incorporates by reference its Motion for Reconsideration and requests that the Commission that Motion to the revision provided by this Notice as well. 5 Request of United States Postal Service to Add Inbound Market Dominant Registered Service Agreement to the Market Dominant Product List, Notice of Type 2 Rate Adjustment, and Application for Non-Public Treatment, Docket Nos. MC2016-188 and R2016-6, July 13, 2016, Attachment 4. Attachment 1 to Postal Service Notice PRC Docket Nos. MC2016-168 and R2016-6 Annex 6 – List of Parties AL "Posta Shqiptare" sh.a. Albania AM Haypost CJSC Armenia AT Österreichische Post AG Austria AW Post Aruba Aruba BE bpost Belgium CH Swiss Post International Switzerland CN China Post Group China (People's Rep.) CO Servicios Postales Nacionales S.A. Colombia CY Cyprus Post Cyprus DE Deutsche Post DHL Germany DK Post Danmark A/S Denmark DO Instituto Postal Dominicano Dominican Republic FI POSTI LTD. Finland (including Ǻland Islands) FR La Poste France GB Royal Mail PLC Great Britain GE Georgian Post Georgia GI Royal Gibraltar Post Office Gibraltar HN Empresa de Correos de Honduras Honduras ID POS Indonesia Indonesia IE AN POST Ireland IS Iceland Post Iceland IT Poste Italiane S.p.A. Italy JE Jersey Post Jersey JP Japan Post Service Co., Ltd. Japan Attachment 1 to Postal Service Notice PRC Docket Nos. MC2016-168 and R2016-6 KI Postal Division Kiribati KY Cayman Islands Post Office Cayman Islands LB LibanPost Lebanon LT Lietuvos Pastas Lithuania LU POST Courier Luxembourg MT MaltaPost p.l.c. Malta MX Correos de Mexico Mexico PY Correo Paraguayo Paraguay RU Russian Post Russia SE PostNord Sverige AB Sweden SI Posta Slovenije, d.o.o. Slovenia TH Thailand Post Thailand US United States Postal Service United States of America VU Vanuatu Post Limited Vanuatu .
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