Notice2021-25121
Change in Rates and Classes of General Applicability for Competitive Products
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 23, 2021
Effective
January 9, 2022
Issuing agencies
Postal Service
Abstract
This notice sets forth changes in rates of general applicability for competitive products.
Full Text
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[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Notices]
[Pages 66706-66875]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25121]
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Vol. 86
Tuesday,
No. 223
November 23, 2021
Part IV
Postal Service
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Change in Rates and Classes of General Applicability for Competitive
Products; Notice
Federal Register / Vol. 86, No. 223 / Tuesday, November 23, 2021 /
Notices
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POSTAL SERVICE
Change in Rates and Classes of General Applicability for
Competitive Products
AGENCY: Postal Service<SUP>TM</SUP>.
ACTION: Notice of a change in rates of general applicability for
competitive products.
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SUMMARY: This notice sets forth changes in rates of general
applicability for competitive products.
DATES: Effective January 9, 2022.
FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.
SUPPLEMENTARY INFORMATION: On November 9, 2021, 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).
Ruth Stevenson,
Chief Counsel, Ethics and Legal Compliance.
Decision of the Governors of the United States Postal Service on
Changes in Rates of General Applicability for Competitive Products
(Governors' Decision No. 21-6)
November 9, 2021
Statement of Explanation and Justification
Pursuant to 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 classification changes 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 CFR 3035.107(c), requires competitive
products collectively to contribute a minimum of 10.0 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 are in accordance with 39 U.S.C. 3632-3633 and 39 CFR 3035.102.
I. Domestic Products
A. Priority Mail Express
Overall, the Priority Mail Express price change represents a 3.1
percent increase. The existing structure of zoned Retail, Commercial
Base, and Commercial Plus price categories is maintained, with
Commercial Base and Commercial Plus prices continuing to be set equal
to each other. Dimensional weighting, which was introduced for all
zones in 2019, will continue in 2022. New for 2022, a $1.50 fee will be
assessed on commercial parcels that are greater than one cubic foot or
with a length greater than 22 inches, if the customer did not provide
dimensions or provided inaccurate dimensions in the electronic manifest
file. Also new for 2022, a new series of nonstandard fees will be
assessed on packages that cause the Postal Service to incur manual
handling costs when the dimensions of the package exceed sortation
requirements.
Retail prices will increase an average of 2.9 percent. The price
for the Retail Flat Rate Envelope, a significant portion of all
Priority Mail Express volume, will increase to $26.95, with the Legal
Size and Padded Flat Rate Envelopes priced at $27.10 and $27.50,
respectively.
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 4.3 percent on average. Commercial
Base prices will, on average, reflect a 13.1 percent discount off of
Retail prices.
The Commercial Plus price category has traditionally offered even
lower prices to large-volume customers. Commercial Plus prices were
matched to the Commercial Base prices in 2016 and will continue to be
in 2022. For January, Commercial Plus prices as a whole will receive a
4.3 percent increase on average.
B. Priority Mail
On average, the Priority Mail prices will be increased by 3.1
percent. The existing structure of Priority Mail Retail, Commercial
Base, and Commercial Plus price categories is maintained. Dimensional
weighting, which was extended to all zones in 2019, will continue in
2022. New for 2022, a $1.50 fee will be assessed on commercial parcels
that are greater than one cubic foot or with a length greater than 22
inches, if the customer did not provide dimensions or provided
inaccurate dimensions in the electronic manifest file. Also new for
2022, a new series of nonstandard fees will be assessed on packages
that cause the Postal Service to incur manual handling costs when the
dimensions of the package exceed sortation requirements.
Retail prices will increase an average of 4.5 percent. Retail Flat
Rate Box prices will be: Small, $9.45; Medium, $16.10; Large, $21.50
and Large APO/FPO/DPO, $20.00. Thus, the Large APO/FPO/DPO Flat Rate
Box will be $1.50 less than the Large Flat Rate Box. The regular Flat
Rate Envelope will be priced at $8.95, with the Legal Size and Padded
Flat Rate Envelopes priced at $9.25 and $9.65, respectively.
The Commercial Base price category offers lower prices to customers
using authorized postage payment methods. The Commercial Base prices
will increase 2.7 percent on average. Commercial Base prices will, on
average, reflect a 17.9 percent discount off of Retail prices.
Commercial Plus offers the same weight-rated and flat-rates prices
as Commercial Base, but offers the additional rate categories of Cubic
and Priority Mail Open & Distribute (PMOD) to customers who meet a
higher volume commitment. For January, Commercial Plus prices as a
whole will receive a 1.2 percent increase and will average 18.6 percent
off Retail prices. While the prices for Commercial Plus are the same as
Commercial Base, the percent change is different because of profile
mail mix differences for the two categories.
C. Parcel Select
On average, Parcel Select prices as a whole will increase 5.5
percent. Prices for destination-entered non-Lightweight Parcel Select,
the Postal Service's bulk ground shipping product, will decrease 11.1
percent on average. For destination delivery unit (DDU) entered
parcels, the average price increase is 6.1 percent. For destination
sectional center facility (DSCF) destination entered parcels, the
average price decrease is 10.4 percent. New prices for machinable DSCF
destination entered parcels that are unsorted are being introduced in
2022. For destination network distribution center (DNDC) parcels, the
average price decrease is 23.1 percent. Prices for Parcel Select
Lightweight will increase by 7.4 percent on average. Parcel Select
Ground will see a 12.1 percent price decrease on average. Dimensional
weighting, which was introduced for all zones in 2019, will continue in
2022.
[[Page 66707]]
New for 2022, a $1.50 fee will be assessed on commercial parcels that
are greater than one cubic foot or with a length greater than 22
inches, if the customer did not provide dimensions or provided
inaccurate dimensions in the electronic manifest file. Also new for
2022, a new series of nonstandard fees will be assessed on packages
that cause the Postal Service to incur manual handling costs when the
dimensions of the package exceed sortation requirements.
Finally, the Postal Service will introduce USPS Connect Local, a
new offering under Parcel Select designed to give neighborhood
businesses enhanced access to the postal network at the local level to
deliver products same-day or next-day if served by their local delivery
unit. Sunday delivery will be available for an additional fee, and
customers must have a valid customer agreement with the Postal Service
on file to participate.
D. Parcel Return Service
Parcel Return Service prices will have an overall price increase of
4.9 percent on average. Prices for parcels retrieved at a return
sectional center facility (RSCF) will increase by 4.9 percent, and
prices for parcels picked up at a return delivery unit (RDU) will
increase 4.9 percent.
E. First-Class Package Service
First-Class Package Service (FCPS) continues to be positioned as a
lightweight (less than one pound) offering primarily used by businesses
for fulfillment purposes. In 2017, First-Class Mail Parcels were
transferred to the competitive product list and renamed First-Class
Package Service--Retail (FCPS-Retail), and in 2019, the FCPS-Retail and
FCPS-Commercial price categories were given zone-based pricing.
Overall, FCPS prices will increase 8.8 percent on average, with a 9.0
percent increase for FCPS-Retail and a 8.8 percent increase for FCPS-
Commercial. New for 2022, a new series of nonstandard fees will be
assessed on retail packages that cause the Postal Service to incur
manual handling costs when the dimensions of the package exceed
sortation requirements.
F. USPS Retail Ground
USPS Retail Ground prices will decrease 7.4 percent overall on
average, but the product is expected to continue to cover its costs in
2022. The price decrease is designed to address overpricing in certain
zones and win more volume in 2022. New for 2022, prices for Zones 1-4
will be differentiated from Priority Mail, and customers shipping in
those zones will no longer default to Priority Mail service. Also new
for 2022, a new series of nonstandard fees will be assessed on packages
that cause the Postal Service to incur manual handling costs when the
dimensions of the package exceed sortation requirements.
G. Domestic Extra Services
Premium Forwarding Service (PFS) prices will increase 5.1 percent
on average in 2022. The retail counter enrollment fee will increase to
$23.90. The online enrollment option, introduced in 2014, will now be
available for $21.95. The weekly reshipment fee will increase to
$23.90. PFS Local, which was introduced in 2019 for P.O. Box customers,
will have an increase in the reshipment fee to $23.90. Prices for Adult
Signature service will increase to $8.50 for the basic service and
$8.75 for the person-specific service. Address Enhancement Service
price increases will vary depending on the particular rate element, to
ensure adequate cost coverage. The RDI API rates within Address
Enhancement Services will be removed because the interface application
is obsolete. Competitive Post Office Box prices will be increasing 18.2
percent on average, within the existing price ranges. Package Intercept
Service will increase 4.6 percent, to $15.95. The Pickup On Demand fee
will remain at $25.00 for 2022. Premium Data Retention and Retrieval
Service, which was introduced in 2020, will have a 51.5 percent price
decrease in 2022, and the list of products eligible for the service
will expand.
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 2.3 percent, and PMEI will be subject to an overall
3.2 percent increase. Commercial Plus prices will be equivalent to
Commercial Base; however, deeper discounting may still be made
available to customers through negotiated service agreements.
B. Priority Mail International
The overall increase for Priority Mail International (PMI) will be
3.7 percent. Commercial Plus prices will be equivalent to Commercial
Base; however, deeper discounting may still be made available to
customers through negotiated service agreements.
C. International Priority Airmail and International Surface Air Lift
Published prices for International Priority Airmail (IPA) and
International Surface Air Lift (ISAL) will increase by 4.9 percent and
8.2 percent, respectively. Within ISAL and IPA, ISAL M-Bag published
prices will increase by 2.9 percent while IPA M-Bags published prices
will remain unchanged.
D. Airmail M-Bags
The published prices for Airmail M-Bags will increase by 5.0
percent.
E. First-Class Package International Service<SUP>TM</SUP>
The overall increase for First-Class Package International Service
(FCPIS) prices will be 4.2 percent. Commercial Plus prices will be
equivalent to Commercial Base; however, deeper discounting will still
be made available to customers through negotiated service agreements.
F. International Ancillary Services and Special Services
Prices for several international ancillary services will be
increased, with an overall increase of 5.0 percent. However, some
services will be increased above average to ensure cost coverage,
including International Postal Money Orders and Money Transfer Service,
which will increase by 15.8 percent.
Order
The changes in prices and classes set forth herein shall be
effective at 12:01 a.m. on January 9, 2022. We direct the Secretary to
have this decision published in the Federal Register in accordance with
39 U.S.C. 3632(b)(2), and direct management to file with the Postal
Regulatory Commission appropriate notice of these changes.
By The Governors:
Ron A. Bloom,
Chairman, Board of Governors.
UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS
Certification of Governors' Vote on Governors' Decision No. 21-6
Consistent with 39 U.S.C. 3632(a), I hereby certify that, on
November 9, 2021, the Governors voted on adopting Governors' Decision
No. 21-6, and that a majority of the Governors then holding office
voted in favor of that Decision.
Dated: November 9, 2021.
Michael J. Elston,
Secretary of the Board of Governors.
BILLING CODE 7710-12-P
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[FR Doc. 2021-25121 Filed 11-22-21; 8:45 am]
BILLING CODE 7710-12-C
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</html>Indexed from Federal Register on November 23, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.