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Postal Service 39 CFR Part 20 International Product and Price Changes; Final Rule

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Postal Service 39 CFR Part 20 International Product and Price Changes; Final Rule Wednesday, April 4, 2007 Part III Postal Service 39 CFR Part 20 International Product and Price Changes; Final Rule VerDate Aug<31>2005 18:07 Apr 03, 2007 Jkt 211001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\04APR3.SGM 04APR3 ycherry on PROD1PC64 with RULES3 16604 Federal Register / Vol. 72, No. 64 / Wednesday, April 4, 2007 / Rules and Regulations POSTAL SERVICE FOR FURTHER INFORMATION CONTACT: new alternatives by combining products Obataiye B. Akinwole, 202–268–7262; with overlapping service standards and 39 CFR Part 20 Tom Philson, 202–268–7355; or Janet prices. We renamed the international Mitchell, 202–268–7522. products to mirror comparable domestic International Product and Price SUPPLEMENTARY INFORMATION: On Changes product names. Table 1 outlines our December 20, 2006, the Postal Service restructured products. The realignment AGENCY: Postal Service. published in the Federal Register (71 merges all economy services including ACTION: Final rule. FR 76230) a notice of proposed Publishers’ Periodicals and Books and international product and pricing Sheet Music into categories with better SUMMARY: The Postal Service, after initiatives. That notice proposed a major service. Mailers who previously mailed considering comments on its proposal to redesign of international products, their publication at Publishers’ change international postal rates, fees, including changes in published prices and mail classifications, is Periodicals rates may now apply meter and supporting mail classifications. The postage to each copy, or for bulk implementing the new published prices redesign included two main features: and mailing standards. The Postal First, we proposed to more closely mailings, use a permit imprint on the Service may negotiate customized prices align international products with their copies and submit a printed PS Form and mailing standards. domestic counterparts for ease of use 3700, Postage Statement EM— DATES: Effective Date: 12:01 a.m. on May and added value to our customers. We International Mail. 14, 2007. merged eight mailing options into four TABLE 1 Previous products New products Features Global Express Guaranteed (documents) ....... Global Express Guaranteed ........................... • 1–3 business day delivery. • Tracking available. Global Express Guaranteed (non-document) • Money-back delivery guarantee1. • Insurance included. Global Express Mail ........................................ Express Mail International .............................. • 3–5 average business day delivery 2. • Tracking available. • Service guarantee to Australia, China, Hong Kong, Republic of Korea (South Korea), and Japan. • Insurance included. • Flat-rate envelope. Airmail Parcel Post ............................................ Priority Mail International ............................... • 6–10 average business day delivery 2. Economy Parcel Post ........................................ Global Priority Mail .......................................... • Tracking to major destinations. • Limited Insurance included.3 • Flat-rate envelope and flat-rate box options available. Airmail Letter Post ............................................. First-Class Mail International ......................... • Available worldwide. Economy Letter Post ......................................... • Registered Mail service available. 1 Some restrictions apply. See retail associate for money-back guarantee details. 2 Average delivery times may vary based upon origin and destination. 3 Insurance is not available for the Priority Mail International flat-rate envelope. Customers will be able to use the price freeze from January 2001 through published pricing change for familiar expedited domestic packaging January 2006. International Priority Airmail (IPA) and supplies for their expedited We requested comments on our International Surface Airlift (ISAL). international shipments. We are also proposed rule and received 37 Customized prices can be negotiated for adding the popular flat-rate envelope comments before the January 19, 2007, IPA and ISAL. Over the past five years, option for Express Mail International, closing date. In response to requests the cost coverage for these services has maintaining the flat-rate envelope from book mailers, we extended the deteriorated. option for Priority Mail International, comment period to February 2 and All international and domestic and adding the flat-rate box option for received an additional 28 comments. services must cover their attributable Priority Mail International. In this final We included 5 comments received past costs and make a reasonable rule, we note the maximum weight limit the February 2 date. In total, we contribution to our institutional costs. for the Priority Mail International flat- received comments from one industry The published price increases will rate box will be 20 pounds or the association, two mailing agents, three allow us to meet that requirement. The average published price increases for country specific maximum, whichever equipment service providers, fifty-five IPA and ISAL are 14.1 percent and 13.1 is less. In addition, we now offer more mailers, and four individuals. We percent, respectively. Depending on the specific delivery time and tracking summarize the three major categories of comments and respond in items 1 destination country group, price information to major destinations. through 3, below. increases may be more or less than the The second main feature of the average. redesign is an increase in published 1. Price Changes for Bulk Letter After carefully reviewing and international prices by an average of 13 Services considering all comments, we decided percent. This increase is necessary due We received 36 comments not to modify the published price to cost increases that occurred during a questioning the magnitude of the increases in our proposal because these VerDate Aug<31>2005 18:07 Apr 03, 2007 Jkt 211001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\04APR3.SGM 04APR3 ycherry on PROD1PC64 with RULES3 Federal Register / Vol. 72, No. 64 / Wednesday, April 4, 2007 / Rules and Regulations 16605 price increases are justified and slightly over 1,000 transactions. As an We received two comments from necessary. alternative, Aerogramme mailers can mailers concerning the overall use either postcards or First-Class Mail published price increase for 2. Restructuring Services International services. Previously international products and the effect Twenty-three commenters objected to purchased Aerogrammes will remain this increase may have on their our proposal to eliminate surface- mailable at the applicable First-Class businesses. The average increase in transported economy services. We have Mail International rate. Recorded international prices is 13 percent and is experienced continuing volume decline Delivery mailers can use Registered necessary because of cost increases that for these economy services. Economy Mail. occurred during a price freeze from services that use surface transportation Regarding the small flat-rate envelope January 2001 through January 2006. account for only 2.7 percent of total for Global Priority Mail, as part of our Also, the GXG rates in the December 20, international volume. The declining product simplification and to more 2006, proposal were misaligned and volumes indicate that demand for faster closely align domestic and international have been corrected in this final rule. services has increased at the expense of products, we will offer only one flat-rate When designing our published services that use surface transportation envelope for Priority Mail International, international prices, we are cognizant of to foreign destinations. As a result, using the same packaging as domestic the intense competitive environment in efficient international surface delivery Priority Mail. All items previously which we and our customers compete. networks have diminished and costs mailable in the Global Priority flat-rate For that reason, we moderated our have dramatically increased. In envelope can be mailed in the new increases in our pricing design. After addition, the lack of efficient surface Priority Mail International flat-rate carefully reviewing and considering delivery networks has led to lengthy envelope. The maximum weight limit these comments, we decided not to and inconsistent delivery times for will remain 4 pounds. modify the price increases that we economy service to many destinations. proposed because the price increases are We understand the concerns of We received one comment justified and are necessary to cover our mailers who use economy services, and questioning our decision to charge the costs. customized agreements may be same rate for postcards as we do for developed that involve different prices letters. In simplifying the pricing One commenter asked us to provide a and standards from those presented in schedule, we made the decision to list of country-specific extra services this rule. charge the same price for the base First- and weight options. We included the Class Mail International letter as we do weight options for Express Mail 3. Miscellaneous for postcards. Postcards are a small International and Priority Mail Three respondents commented on our percentage of the total letter-post International in this final rule. online discounts. Customers who volume, and we believe that it would be We provide the updated IMM purchase postage using Click-N-Ship at more convenient for customers to use standards for our published prices,
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