Change in Rates and Classes of General Applicability for Competitive. ACTION: Notice of a change in rates of general applicability for competitive

Transcription

1 This document is scheduled to be published in the Federal Register on 11/26/2013 and available online at and on FDsys.gov POSTAL SERVICE Change in Rates and Classes of General Applicability for Competitive Products AGENCY: Postal Service. ACTION: Notice of a change in rates of general applicability for competitive products. SUMMARY: This notice sets forth changes in rates of general applicability for competitive products. DATES: Effective: January 26, FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, Jr., SUPPLEMENTARY INFORMATION: On October 22, 2013, pursuant to their authority under 39 U.S.C. 3632, the Governors of the Postal Service established prices and classification changes for competitive products. The Governors Decision and the record of proceedings in connection with such decision are reprinted below in accordance with section 3632(b)(2). Stanley F. Mires, Attorney, Legal Policy & Legislative Advice. 1

2 DECISION OF THE GOVERNORS OF THE UNITED STATES POSTAL SERVICE ON CHANGES IN RATES AND CLASSES OF GENERAL APPLICABILITY FOR COMPETITIVE PRODUCTS (GOVERNORS DECISION NO. 13-2) October 22, 2013 STATEMENT OF EXPLANATION AND JUSTIFICATION Pursuant to our authority under section 3632 of title 39, as amended by the Postal Accountability and Enhancement Act of 2006 ( PAEA ), we establish new prices of general applicability for the Postal Service s shipping services (competitive products), and such changes in classifications as are necessary to define the new prices. The changes are described generally below, with a detailed description of the changes in the attachment. The attachment includes the draft Mail Classification Schedule sections with changes in classification language in legislative format, and new prices displayed in the price charts. As shown in the nonpublic annex being filed under seal herewith, the changes we establish should enable each competitive product to cover its attributable costs (39 U.S.C. 3633(a)(2)) and should result in competitive products as a whole complying with 39 U.S.C. 3633(a)(3), which, as implemented by 39 C.F.R (c), requires competitive products to contribute a minimum of 5.5 percent to the Postal Service s institutional costs. Accordingly, no issue of subsidization of competitive products by market dominant products should arise (39 U.S.C. 3633(a)(1)). We therefore find that the new prices and classification changes are in accordance with 39 U.S.C and 39 C.F.R

3 Governors Decision No Page 3 I. Domestic Products A. Priority Mail Express Overall, the Priority Mail Express price change represents a 3 percent increase. The existing structure of zoned Retail, Commercial Base, and Commercial Plus price categories is maintained. A new 9 is added for mailings to and from the Freely Associated States (Micronesia, Marshall Islands, and Palau). Additionally, a 10:30am delivery time option will be added for $5.00. Retail prices will increase an average of 3.1 percent. The price for the Retail Flat Rate Envelope, Padded Flat Rate Envelope, and Legal Flat Rate Envelope, a significant portion of all Priority Mail Express volume, is increasing four cents to $ The Flat Rate Box price will increase from $39.95 to $ The Commercial Base price category offers lower prices to customers who use online and other authorized postage payment methods. The Commercial Base prices will increase 2.9 percent. The Commercial Plus price category offers even lower prices to large-volume customers. Commercial Plus prices, as a whole, will receive a 0.6 percent increase. A fee of 20 cents per piece will be assessed on any commercial parcels that lack an Intelligent Mail Package Barcode (IMpb). B. Priority Mail The existing structure of Priority Mail Retail, Commercial Base, and Commercial Plus price categories is maintained. A new 9 is added for mailings to and from the Freely Associated States (Micronesia, Marshall Islands, and Palau). Retail Flat Rate Box prices will be: Small, $5.80; Medium, $12.35; Large, $17.45; and Large APO/FPO/DPO, $ The regular Flat Rate Envelope will be priced at $5.60, with the Legal Size and Padded Flat Rate Envelopes priced at $5.75 and $5.95, respectively. The Commercial Base price category offers lower prices to customers using online and other authorized postage payment methods. 3

4 Governors Decision No Page 4 The Commercial Plus price category offers even lower prices to large-volume customers. This price category will continue to contain Critical Mail letters and flats, a half pound price, an assortment of Flat Rate packaging, and Commercial Plus Cubic pricing. New for January, the minimum annual volume threshold for cubic pricing and other Commercial Plus offerings will be lowered to 50,000 packages. Finally, a fee of 20 cents per piece will be assessed on any commercial parcels that lack an Intelligent Mail Package Barcode (IMpb). C. Parcel Select On average, prices for Parcel Select, the Postal Service s bulk ground shipping product, will increase 5.9 percent. For destination entered parcels, the average price increases are 8.0 percent for parcels entered at a destination delivery unit (DDU), 5.6 percent for parcels entered at a destination plant (DSCF) and 5.1 percent for parcels entered at a destination Network Distribution Center (DNDC). For non-destination entered parcels, the average price increase is 5.9 percent. Prices for Lightweight Parcel Select, formerly Standard Mail commercial parcels, will increase by 10.1 percent. D. Parcel Return Service Parcel Return Service prices will have an overall price increase of 3.0 percent. Prices for parcels retrieved at a return Network Distribution Center (RNDC) or a return Sectional Center Facility (RSCF) will have a zero percent overall increase, and prices for parcels picked up at a return delivery unit (RDU) will increase 5.7 percent. Prices will remain unchanged for full network Postal PRS, available to high volume mailers with at least 70 thousand pieces annually. E. First-Class Package Service First-Class Package Service continues to be positioned as a lightweight (less than one pound) offering used by businesses for fulfillment purposes. Overall, Commercial First- Class Package Service prices will increase 5.0 percent, with no structural changes. A fee of 20 cents per piece will be assessed on any commercial parcels that lack an Intelligent Mail Package Barcode (IMpb). F. Standard Post 4

5 Governors Decision No Page 5 Standard Post prices will increase 5.2 percent for Prices in s 1-4 will now align with the retail Priority Mail prices for those zones. Therefore, customers shipping in those price cells will receive Priority Mail service, and will only default to Standard Post if the item contains hazardous material or is otherwise not permitted to travel by air transportation. G. Domestic Extra Services Premium Forwarding Service prices will increase slightly in 2014, with a new pricing option added. The retail counter enrollment fee will increase to $ A new online enrollment option will be available for $ The weekly reshipment fee will remain at $ Prices for Adult Signature service will increase to $5.20 for the basic service and $5.45 for the person-specific service. Address Enhancement Service prices will be increasing between 3.6 and 7.7 percent depending on the particular rate element, to ensure adequate cost coverage. Competitive Post Office Box prices will be increasing 3.5 percent on average, which is within the existing price ranges. Package Intercept Service will increase 5.0 percent, to $ The Pickup on demand fee will remain unchanged for January II. International Products A. Expedited Services International expedited services include Global Express Guaranteed (GXG) and Priority Mail Express International (PMEI). Overall, GXG prices will rise by 3.0 percent, and PMEI will be subject to an overall 1.3 percent increase. The existing structure of GXG Retail, Commercial Base, and Commercial Plus price categories will be maintained, with the exception of a minor revision concerning payment methods for which GXG Commercial Base is available. The existing structure of PMEI Flat Rate, Retail, Commercial Base and Commercial Plus price categories will also be maintained, except for the establishment of PMEI Flat Rate Commercial Base and PMEI Flat Rate Commercial Plus rates, a minor revision concerning payment methods for which PMEI Commercial Base is available, and an increase to 70 lbs. for the maximum weight for PMEI for Country Price Group 2 (Mexico). B. Priority Mail International 5

6 Governors Decision No Page 6 The overall increase for Priority Mail International (PMI) will be 1.1 percent. The existing structure of PMI Flat Rate, Retail, Commercial Base, and Commercial Plus price categories will be maintained, except for the establishment of PMI Flat Rate Commercial Base and PMI Flat Rate Commercial Plus rates, with accompanying changes concerning the availability of Electronic USPS Delivery Confirmation International. Additional classification changes include a minor revision concerning payment methods for which PMI Commercial Base is available, an increase to 70 lbs. for the maximum weight for PMI for Rate Group 2 (Mexico), as well as minor revisions concerning PMI contents restrictions and size limitations for PMI items. C. International Priority Airmail and International Surface Air Lift Published prices for International Priority Airmail (IPA) will decrease by 2.5 percent, and for International Surface Air Lift (ISAL) prices will decrease by 2.9 percent. Classification changes include revising the structure of IPA and ISAL price categories so that there are 19 rate groups for which rates are established by mail shape (letters and postcards, large envelopes (flats), and packages (small packets and rolls)). In addition, the minimum weight of Direct Country containers will be reduced to 2 lbs., the maximum weight for IPA and ISAL large envelopes (flats) will be reduced to 17.6 ounces and the maximum weight for IPA and ISAL packages (small packets and rolls) will be increased to 4.4 pounds. D. Airmail M-Bags The published prices for Airmail M-Bags will increase by 2.9 percent. E. First-Class Package International Service The overall increase for First-Class Package International Service (FCPIS) Retail prices will be 0.8 percent; FCPIS Commercial Base and FCPIS Commercial Plus prices will remain unchanged. The existing structure of FCPIS Retail, Commercial Base, and Commercial Plus price categories will be maintained, except for a minor revision concerning payment methods for which PMI Commercial Base is available. In addition, Pickup on Demand will be made available for FCPIS. 6

7 Governors Decision No Page 7 F. International Ancillary Services and Special Services Prices for several international ancillary services will be increased. Certificates of Mailing will increase 9.7 percent. Registered Mail will increase 5.4 percent. International Return Receipt will increase 7.1 percent the Customs Clearance and Delivery Fee will increase 9.1 percent. The maximum amount for Vendor Assisted Electronic Money Transfer will decrease to $ ORDER The changes in prices and classes set forth herein shall be effective at 12:01 A.M. on January 26, We direct the Secretary to have this decision published in the Federal Register in accordance with 39 U.S.C. 3632(b)(2). We also direct management to file with the Postal Regulatory Commission appropriate notice of these changes. By The Governors: /s/ Mickey D. Barnett Chairman 7

8 Attachment to Governors Decision No PART B COMPETITIVE PRODUCTS 8

9 Attachment to Governors Decision No COMPETITIVE PRODUCT LIST * * * 2001 COMPETITIVE PRODUCT DESCRIPTIONS * * * 2100 Domestic Products * * * 9

10 Domestic Products Priority Mail Express 2105 Priority Mail Express * * * Optional Features The following additional postal services may be available in conjunction with the product specified in this section: Pickup On Demand Service Sunday/Holiday Delivery 10:30am Delivery Ancillary Services (1505) o Address Correction Service (1505.1) o Collect On Delivery (1505.7) o Priority Mail Express Insurance (1505.9) o Return Receipt ( ) Competitive Ancillary Services (2545) o Adult Signature (2545.1) o Package Intercept Service (2545.2) 10

11 Domestic Products Priority Mail Express Prices (pounds) Retail Priority Mail Express / Local, s 1 &

12 Domestic Products Priority Mail Express (pounds) Retail Priority Mail Express / (Continued) Local, s 1 &

13 Domestic Products Priority Mail Express (pounds) Retail Priority Mail Express / (Continued) Local, s 1 & Retail Flat Rate Envelope Retail Regular Flat Rate Envelope, per piece Retail Legal Flat Rate Envelope, per piece Retail Padded Flat Rate Envelope, per piece

14 Domestic Products Priority Mail Express Retail Flat Rate Box Retail Regular Flat Rate Box, per piece

15 Domestic Products Priority Mail Express (pounds) Commercial Base / Local, s 1 &

16 Domestic Products Priority Mail Express (pounds) Commercial Base / (Continued) Local, s 1 &

17 Domestic Products Priority Mail Express (pounds) Commercial Base / (Continued) Local, s 1 & Commercial Base Flat Rate Envelope Commercial Base Regular Flat Rate Envelope, per piece Commercial Base Legal Flat Rate Envelope, per piece Commercial Base Padded Flat Rate Envelope, per piece

18 Domestic Products Priority Mail Express Commercial Base Flat Rate Box Commercial Base Flat Rate Box, per piece

19 Domestic Products Priority Mail Express (pounds) Commercial Plus / Local, s 1 &

20 Domestic Products Priority Mail Express (pounds) Commercial Plus / (Continued) Local, s 1 &

21 Domestic Products Priority Mail Express (pounds) Commercial Plus / (Continued) Local, s 1 & Commercial Plus Flat Rate Envelope Commercial Plus Regular Flat Rate Envelope, per piece Commercial Plus Legal Flat Rate Envelope, per piece Commercial Plus Padded Flat Rate Envelope, per piece

22 Domestic Products Priority Mail Express Commercial Plus Flat Rate Box Commercial Plus Flat Rate Box, per piece Pickup On Demand Service Add $20.00 for each Pickup On Demand stop. Sunday/Holiday Delivery Add $12.50 for requesting Sunday or holiday delivery. 10:30am Delivery Add $5.00 for requesting delivery by 10:30am. IMpb Noncompliance Fee Add $0.20 for each IMpb-noncompliant commercial parcel. 22

23 Domestic Products Priority Mail 2110 Priority Mail * * * Price Categories The following price categories are available for the product specified in this section: Retail o / Prices are based on weight and zone o Flat Rate Envelopes Envelope provided or approved by the Postal Service o Flat Rate Boxes Boxes provided or approved by the Postal Service o Regional Rate Boxes o Balloon Price Applies to parcels in zones local through 4, weighing less than 20 pounds, and measuring between 84 and 108 inches in combined length and girth o Dimensional Applies to parcels in zones 5 through 8 that exceed one cubic foot Commercial Base Available to mailers who use specifically authorized postage payment methods o / Prices are based on weight and zone o Flat Rate Envelopes Envelope provided or approved by the Postal Service o Flat Rate Boxes Boxes provided or approved by the Postal Service o Regional Rate Boxes o Balloon Price Applies to parcels in zones local through 4, weighing less than 20 pounds, and measuring between 84 and 108 inches in combined length and girth o Dimensional Applies to parcels in zones 5 through 8 that exceed one cubic foot 23

24 Domestic Products Priority Mail Commercial Plus Available to mailers who use specifically authorized postage payment methods and whose annual volume exceeds 75,00050,000 pieces or 600 open and distribute containers for parcels, or 5,000 letter-sized pieces excluding the Padded Flat Rate Envelope o / Prices are based on weight and zone o Flat Rate Envelopes Envelope provided or approved by the Postal Service o Flat Rate Boxes Boxes provided or approved by the Postal Service o Regional Rate Boxes o Balloon Price Applies to parcels in zones local through 4, weighing less than 20 pounds, and measuring between 84 and 108 inches in combined length and girth o Dimensional Applies to parcels in zones 5 through 8 that exceed one cubic foot o Critical Mail Prices are available to Commercial Plus customers who use specifically authorized postage payment methods and whose annual Priority Mail volume exceeds 5,000 pieces. Commercial Plus Cubic Prices are available to customers who use specifically authorized postage payment methods and whose annual Priority Mail volume exceeds 150,00050,000 pieces o /Cubic Volume Open and Distribute (PMOD) Prices are available to customers who use specifically authorized postage payment methods o Processing Facilities Received at designated processing facilities, or other equivalent facility Half Tray, Full Tray, EMM Tray, or Flat Tub o DDU Received at designated Destination Delivery Unit, or other equivalent facility Half Tray, Full Tray, EMM Tray, or Flat Tub * * * 24

25 Domestic Products Priority Mail Prices (pounds) Retail Priority Mail / Local, s 1 &

26 Domestic Products Priority Mail (pounds) Retail Priority Mail / (Continued) Local, s 1 &

27 Domestic Products Priority Mail (pounds) Retail Priority Mail / (Continued) Local, s 1 &

28 Domestic Products Priority Mail Retail Flat Rate Envelopes 1 Retail Regular Flat Rate Envelope, per piece 5.60 Retail Legal Flat Rate Envelope, per piece 5.75 Retail Padded Flat Rate Envelope, per piece 5.95 Notes 1. The price for Regular, Legal, or Padded Flat Rate Envelopes also applies to sales of Regular, Legal, or Padded Flat Rate Envelopes, respectively, marked with Forever postage, at the time the envelopes are purchased. Retail Flat Rate Boxes 1 Size Small Flat Rate Box Medium Flat Rate Boxes Large Flat Rate Boxes Delivery to Domestic Address Delivery to APO/FPO/DPO Address Notes 1. The price for Small, Medium, or Large Flat Rate Boxes also applies to sales of Small, Medium, or Large Flat Rate Boxes, respectively, marked with Forever postage, at the time the boxes are purchased. Size Regional Rate Boxes Local, s 1 & A B C

29 Domestic Products Priority Mail Retail Balloon Price In s 1-4 (including local), parcels weighing less than 20 pounds but measuring more than 84 inches in combined length and girth (but not more than 108 inches) are charged the applicable price for a 20-pound parcel. Retail Dimensional In s 5-8, parcels exceeding one cubic foot are priced at the actual weight or the dimensional weight, whichever is greater. For box-shaped parcels, the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) of the parcel, and dividing by 194. For irregular-shaped parcels (parcels not appearing box-shaped), the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) at the associated maximum cross-sections of the parcel, dividing by 194, and multiplying by an adjustment factor of

30 Domestic Products Priority Mail (pounds) Commercial Base Priority Mail / Local, s 1 &

31 Domestic Products Priority Mail (pounds) Commercial Base Priority Mail / (Continued) Local, s 1 &

32 Domestic Products Priority Mail (pounds) Commercial Base Priority Mail / (Continued) Local, s 1 & Commercial Base Flat Rate Envelope Commercial Base Regular Flat Rate Envelope, per piece 5.05 Commercial Base Legal Flat Rate Envelope, per piece 5.25 Commercial Base Padded Flat Rate Envelope, per piece

33 Domestic Products Priority Mail Commercial Base Flat Rate Box Size Small Flat Rate Box Regular Flat Rate Boxes Large Flat Rate Boxes Delivery to Domestic Address Delivery to APO/FPO/DPO Address Size Commercial Base Regional Rate Boxes Local, s 1 & A B C Commercial Base Balloon Price In s 1-4 (including local), parcels weighing less than 20 pounds but measuring more than 84 inches in combined length and girth (but not more than 108 inches) are charged the applicable price for a 20-pound parcel. Commercial Base Dimensional In s 5-8, parcels exceeding one cubic foot are priced at the actual weight or the dimensional weight, whichever is greater. For box-shaped parcels, the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) of the parcel, and dividing by 194. For irregular-shaped parcels (parcels not appearing box-shaped), the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) at the associated maximum cross-sections of the parcel, dividing by 194, and multiplying by an adjustment factor of

34 Domestic Products Priority Mail (pounds) Commercial Plus Priority Mail / Local, s 1 &

35 Domestic Products Priority Mail (pounds) Commercial Plus Priority Mail / (Continued) Local, s 1 &

36 Domestic Products Priority Mail (pounds) Commercial Plus Priority Mail / (Continued) Local, s 1 & Commercial Plus Flat Rate Envelope Commercial Plus Regular Flat Rate Envelope, per piece 4.95 Commercial Plus Legal Flat Rate Envelope, per piece 4.99 Commercial Plus Padded Flat Rate Envelope, per piece

37 Domestic Products Priority Mail Commercial Plus Flat Rate Box Size Small Flat Rate Box Medium Flat Rate Boxes Large Flat Rate Boxes Delivery to Domestic Address Delivery to APO/FPO/DPO Address Cubic Feet Commercial Plus Regional Rate Boxes Local, s 1 & A B C Commercial Plus Balloon Price In s 1-4 (including local), parcels weighing less than 20 pounds but measuring more than 84 inches in combined length and girth (but not more than 108 inches) are charged the applicable price for a 20-pound parcel. Commercial Plus Dimensional In s 5-8, parcels exceeding one cubic foot are priced at the actual weight or the dimensional weight, whichever is greater. For box-shaped parcels, the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) of the parcel, and dividing by 194. For irregular-shaped parcels (parcels not appearing box-shaped), the dimensional weight (pounds) is calculated by multiplying the length (inches) times the width (inches) times the height (inches) at the 37

38 Domestic Products Priority Mail associated maximum cross-sections of the parcel, dividing by 194, and multiplying by an adjustment factor of Shape Critical Mail Local, s 1 & Letter Flat Letter with Signature Flat with Signature Cubic Feet Commercial Plus Cubic Local, s 1 &

39 Domestic Products Priority Mail Container Open and Distribute (PMOD) a. DDU Local, s 1 & Half Tray Full Tray EMM Tray Flat Tub Container b. Processing Facilities Local, s 1 & Half Tray Full Tray EMM Tray Flat Tub Pickup On Demand Service Add $20.00 for each Pickup On Demand stop. IMpb Noncompliance Fee Add $0.20 for each IMpb-noncompliant commercial parcel. 39

40 Domestic Products Parcel Select 2115 Parcel Select * * * Size and Limitations Minimum Parcel Select Length Height Thickness large enough to accommodate postage, address, and other required elements on the address side none 130 inches in combined length and girth 70 pounds Minimum Lightweight Length Height Thickness large enough to accommodate postage, address, and other required elements on the address side none 108 inches in combined length and girth < 16 ounces Minimum Volume Requirements Nonpresort PC Postage Nonpresort All Other Postage Payment Methods Lightweight All Other Parcel Select Minimum Volume Requirements None 50 pieces or 50 pounds per mailing 200 pieces or 50 pounds per mailing 50 ieces per mailing * * * 40

41 Domestic Products Parcel Select Prices Destination Entered DDU a. DDU (pounds) DDU

42 Domestic Products Parcel Select a. DDU (Continued) (pounds) DDU

43 Domestic Products Parcel Select a. DDU (Continued) (pounds) DDU Oversized 9.29 b. Balloon Price Pieces exceeding 84 inches in length and girth combined (but not more than 108 inches) and weighing less than 20 pounds are subject to a price equal to that for a 20-pound parcel for the zone to which the parcel is addressed. 43

44 Domestic Products Parcel Select c. Oversized Pieces Regardless of weight, any piece that measures more than 108 inches (but not more than 130 inches) in length plus girth must pay the oversized price. d. Forwarding and Returns Parcel Select pieces that are forwarded on request of the addressee or forwarded or returned on request of the mailer will be subject to the applicable Parcel Select Nonpresort price, plus $3.00, when forwarded or returned. 44

45 Domestic Products Parcel Select Destination Entered DSCF a. DSCF 5-Digit Machinable (pounds) DSCF 5-Digit