Notice2022-25179
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 18, 2022
Effective
January 22, 2023
Issuing agencies
Postal Service
Abstract
This notice sets forth changes in rates and classifications of general applicability for competitive products.
Full Text
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<title>Federal Register, Volume 87 Issue 222 (Friday, November 18, 2022)</title>
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[Federal Register Volume 87, Number 222 (Friday, November 18, 2022)]
[Notices]
[Pages 69350-69351]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25179]
[[Page 69350]]
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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 and classifications of general
applicability for competitive products.
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SUMMARY: This notice sets forth changes in rates and classifications of
general applicability for competitive products.
DATES: Effective date: January 22, 2023.
FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.
SUPPLEMENTARY INFORMATION: On November 9, 2022, 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). Mail Classification Schedule language containing the new
prices and classification changes can be found at <a href="http://www.prc.gov">www.prc.gov</a>.
Ruth Stevenson,
Chief Counsel, Ethics and Legal Compliance.
Decision of the Governors of the United States Postal Service on
Changes in Rates and Classifications of General Applicability for
Competitive Products (Governors' Decision No. 22-6)
November 9, 2022
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 prices and classifications of general applicability for the
Postal Service's competitive products. The changes are described
generally below, with a detailed description of the changes in the
Postal Service's associated draft Mail Classification Schedule change
document. That document contains 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 10.4 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.
3632-3633 and 39 CFR 3035.102 and 104.
I. Domestic Products
A. Priority Mail Express
Overall, the Priority Mail Express price change represents a 6.6
percent increase. The Commercial Base and Commercial Plus price
categories, which have had equivalent prices since 2016, will be
consolidated into one Priority Mail Express Commercial price category
for 2023. Also new for 2023, the zoned prices for the existing ``Local,
1, 2'' Zone will be differentiated. The Local zone will be eliminated,
and separate prices will be established for Zone 1 and Zone 2. No other
structural changes are proposed. Dimensional weighting, which was
introduced for all zones in 2019, will continue in 2023.
Retail prices will increase an average of 6.7 percent. The price
for the Retail Flat Rate Envelope, a significant portion of all
Priority Mail Express volume, will increase to $28.75, with the Legal
Size and Padded Flat Rate Envelopes priced at $28.95 and $29.45,
respectively.
The newly consolidated Commercial price category will increase 6.0
percent on average. Commercial prices will, on average, reflect a 12.5
percent discount off of Retail prices. Nonstandard Fees (NSFs) are
changing for our full network products for 2023. Priority Mail Express
will see an increase in NSFs, while ground products will see a price
decrease in NSFs.
B. Priority Mail
On average, the Priority Mail prices will be increased by 5.5
percent. Similar to Priority Mail Express, the Commercial Base and
Commercial Plus price categories, which have had equivalent prices
since 2019, will be consolidated into one Priority Mail Commercial
price category for 2023. Dimensional weighting, which was extended to
all zones in 2019, will continue in 2023. New for 2023, the Priority
Mail Regional Rate Boxes will be eliminated because of low usage and to
avoid product redundancies. Also new for 2023, the zoned prices for the
existing ``Local, 1, 2'' Zone will be differentiated. The Local zone
will be eliminated, and separate prices will be established for Zone 1
and Zone 2. No other structural changes are proposed.
Retail prices will increase by an average of 6.8 percent. Retail
Flat Rate Box prices will be: Small, $10.20; Medium, $17.10; Large,
$22.80 and Large APO/FPO/DPO, $21.20.
Thus, the Large APO/FPO/DPO Flat Rate Box will be $1.60 less than
the Large Flat Rate Box. The regular Flat Rate Envelope will be priced
at $9.65, with the Legal Size and Padded Flat Rate Envelopes priced at
$9.95 and $10.40, respectively.
The newly consolidated Commercial price category will increase by
3.6 percent on average. Commercial prices will, on average, reflect a
20.1 percent discount off of Retail prices. Nonstandard Fees (NSFs) are
changing for our full network products for 2023. Priority Mail will see
an increase in NSFs, while ground products will see a price decrease in
NSFs.
C. Parcel Select
On average, Parcel Select prices as a whole will increase 5.1
percent. Prices for destination-entered non-Lightweight Parcel Select,
the Postal Service's bulk ground shipping product, will increase 5.1
percent on average. For destination delivery unit (DDU) entered
parcels, the average price increase is 5.6 percent. For destination
sectional center facility (DSCF) destination entered parcels, the
average price increase is 4.7 percent. For destination network
distribution center (DNDC) parcels, the average price increase is 5.0
percent. Prices for Parcel Select Lightweight will increase by 6.1
percent on average. Prices for USPS Connect Local, introduced in 2022,
will remain unchanged for 2023. Finally, Parcel Select Ground, which is
slated to be eliminated later in 2023, will see very minor price
adjustments in certain cells, with a zero percent average change.
Dimensional weighting, which was introduced for all zones in 2019, will
continue in 2023.
New for 2023, the zoned prices for the existing ``Local, 1, 2''
Zone will be differentiated. The Local zone will be eliminated, and
separate prices will be established for Zone 1 and Zone 2. No other
structural changes are proposed. Nonstandard Fees (NSFs) are changing
for our full network products for 2023. Ground products will see a
price decrease in NSFs.
D. First-Class Package Service
First-Class Package Service (FCPS) is currently positioned as a
lightweight (less than one pound) offering primarily used by businesses
for fulfillment purposes. Later in 2023, the Postal Service plans to
enhance and expand
[[Page 69351]]
the FCPS product up to seventy pounds, but for January 2023, FCPS will
remain only a lightweight offering. Overall, FCPS prices will increase
7.8 percent on average, with a 6.9 percent increase for FCPS-Retail and
a 8.0 percent increase for FCPS-Commercial. New for 2023, the zoned
prices for the existing ``Local, 1, 2'' Zone will be differentiated.
The Local zone will be eliminated, and separate prices will be
established for Zone 1 and Zone 2. No other structural changes are
proposed. Nonstandard Fees (NSFs) are changing for our full network
products for 2023. Ground products will see a price decrease in NSFs.
F. USPS Retail Ground
USPS Retail Ground, which is also slated for removal later in 2023
as part of the Postal Service's expansion of FCPS and product
simplification efforts, will remain on the competitive product list in
January 2023. USPS Retail Ground prices will increase 6.4 percent
overall on average. New for 2023, the zoned prices for the existing
``Local, 1, 2'' Zone will be differentiated. The Local zone will be
eliminated, and separate prices will be established for Zone 1 and Zone
2. No other structural changes are proposed. Nonstandard Fees (NSFs)
are changing for our full network products for 2023. Ground products
will see a price decrease in NSFs.
G. Domestic Extra Services
Premium Forwarding Service (PFS) prices will increase 6.5 percent
on average in 2023. The retail counter enrollment fee will increase to
$25.45. The online enrollment option, introduced in 2014, will increase
to $23.40. The weekly reshipment fee will increase to $25.45. PFS
Local, which was introduced in 2019 for P.O. Box customers, will have
an increased reshipment fee of $25.45. Prices for Adult Signature
service will increase to $9.05 for the basic service and $9.35 for the
person-specific service. Address Enhancement Service prices will remain
the same for 2023. Competitive Post Office Box prices will be
increasing 6.5 percent on average, within the existing price ranges.
Package Intercept Service will increase to $17.00. The Pickup On Demand
fee will increase to $26.50 for 2023. Premium Data Retention and
Retrieval Service (USPS Tracking Plus), which was introduced in 2020,
will not see a price change in 2023. New for 2023, the Postal Service
is introducing a new Label Delivery Service under the Competitive
Ancillary Services product, whereby residential and business customers
can request return label delivery for a $1.25 fee for certain products.
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 4.9 percent, and PMEI will be subject to an overall
6.0 percent increase. Commercial Plus prices will be equivalent to
Commercial Base.
B. Priority Mail International
The overall increase for Priority Mail International (PMI) will be
6.0 percent. Commercial Plus prices will be equivalent to Commercial
Base. For Priority Mail Express International, weight-rated items
tendered at retail counters will no longer be offered at prices
equivalent to Priority Mail International for certain destinations and
weight steps subject to certain requirements and conditions. The zoned
prices based on origin ZIP Code for Priority Mail International
destined to Canada will be collapsed into a single country group for
Priority Mail International to Canada, and the related fee for the
International Service Center (ISC) zone chart for Priority Mail
International pieces destined to Canada will be eliminated.
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 3.5 percent and
12.0 percent, respectively.
D. Airmail M-Bags
The published prices for Airmail M-Bags will increase by 6.4
percent.
E. First-Class Package International ServiceTM
The overall increase for First-Class Package International Service
(FCPIS) prices will be 6.5 percent. Commercial Plus prices will be
equivalent to Commercial Base.
F. International Ancillary Services and Special Services
Prices for several international ancillary services will be
increased, with an overall increase of 12.2 percent.
Order
The changes in prices and classes set forth herein shall be
effective at 12:01 a.m. on January 22, 2023. 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:
/s/
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Roman Martinez IV,
Chairman, Board of Governors.
UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS
CERTIFICATION OF GOVERNORS' VOTE ON GOVERNORS' DECISION NO. 22-6
Consistent with 39 U.S.C. 3632(a), I hereby certify that, on
November 9, 2022, the Governors voted on adopting Governors' Decision
No. 22-6, and that a majority of the Governors then holding office
voted in favor of that Decision.
Date: November 9, 2022.
/s/
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Michael J. Elston,
Secretary of the Board of Governors.
[FR Doc. 2022-25179 Filed 11-17-22; 8:45 am]
BILLING CODE 7710-12-P
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</html>Indexed from Federal Register on November 18, 2022.
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.