Notice2025-08709

Change in Rates and Classifications 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
May 16, 2025

Issuing agencies

Postal Service

Abstract

This notice sets forth changes in rates and classifications of general applicability for competitive products.

Full Text

<html>
<head>
<title>Federal Register, Volume 90 Issue 94 (Friday, May 16, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 94 (Friday, May 16, 2025)]
[Notices]
[Pages 21087-21088]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-08709]



[[Page 21087]]

=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE


Change in Rates and Classifications of General Applicability for 
Competitive Products

AGENCY: Postal Service.

ACTION: Notice of a change in rates and classifications of general 
applicability for competitive products.

-----------------------------------------------------------------------

SUMMARY: This notice sets forth changes in rates and classifications of 
general applicability for competitive products.

DATES: Applicability date: July 13, 2025.

FOR FURTHER INFORMATION CONTACT: Elizabeth Reed, 202-268-3179.

SUPPLEMENTARY INFORMATION: On May 8, 2025, pursuant to their authority 
under 39 U.S.C. 3632, the Governors of the Postal Service established 
price 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 can be found at <a href="http://www.prc.gov">www.prc.gov</a>.

Kevin Rayburn,
Attorney, 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. 25-1)

May 8, 2025

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 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 9.6 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

    Priority Mail Express prices will not change for July 2025, and the 
existing price structure will be maintained. Non-Standard Fees (NSF) 
applicable to Priority Mail Express packages will be restructured for 
July 2025. Finally, the IMpb Noncompliance Fee will be renamed the 
Package Quality Noncompliance Fee.

B. Priority Mail

    On average, Priority Mail prices will be increased by 6.3 percent, 
and the existing price structure will be maintained.
    Retail prices will increase by an average of 7.3 percent. Retail 
Flat Rate Box prices will be: Small, $11.70; Medium, $21.05; Large, 
$29.95 and Large APO/FPO/DPO, $28.70. Thus, the Large APO/FPO/DPO Flat 
Rate Box will be $1.25 less than the Large Flat Rate Box. The regular 
Flat Rate Envelope will be priced at $11.00, with the Legal Size and 
Padded Flat Rate Envelopes priced at $11.20 and $11.95, respectively.
    The Commercial price category will increase by 5.1 percent on 
average. Commercial prices will, on average, reflect a 14.6 percent 
discount off of Retail prices. Non-Standard Fees (NSF) applicable to 
Priority Mail packages will be restructured for July 2025. Finally, the 
IMpb Noncompliance Fee will be renamed the Package Quality 
Noncompliance Fee.

C. Parcel Select

    On average, Parcel Select prices as a whole will increase 7.6 
percent. For destination delivery unit (DDU) entered parcels, the 
average price increase is 10.0 percent. For destination hub (Dhub) 
entered parcels, the average price increase is 0.0 percent. For 
destination sectional center facility (DSCF) destination entered 
parcels, the average price increase is 7.2 percent. For Connect Local, 
introduced in 2022, the average price increase is 5.7 percent. The 
destination network distribution center (DNDC) price category within 
the Parcel Select product will be eliminated for July 2025, because it 
now has limited operational value based on recent network changes. Non-
Standard Fees (NSF) applicable to Parcel Select packages will be 
restructured for July 2025. Finally, the IMpb Noncompliance Fee will be 
renamed the Package Quality Noncompliance Fee.

D. USPS Ground Advantage

    USPS Ground Advantage, introduced in July 2023, is the Postal 
Service's flagship ground package product. Overall, USPS Ground 
Advantage prices will increase 7.1 percent on average, and the existing 
structure will be maintained. Retail prices will increase 9.8 percent 
on average, while Commercial prices will increase 4.7 percent on 
average. The Alaska Limited Overland Routes (LOR) price category will 
see a 9.9 percent average increase for July 2025. New for July 2025, 
USPS Ground Advantage Commercial packages will be sealed against 
inspection, which will better align it with our Retail offering and 
help to grow USPS Ground Advantage volume. Non-Standard Fees (NSF) 
applicable to USPS Ground Advantage packages will be restructured for 
July 2025. Finally, the IMpb Noncompliance Fee will be renamed the 
Package Quality Noncompliance Fee.

F. Domestic Extra Services

    No competitive Extra Services prices will change for July 2025.

II. International Products

    No competitive International Products prices will change for July 
2025.

Order

    The changes in prices and classes set forth herein shall be 
effective at 12:01 a.m. on July 13, 2025. We direct the Secretary of 
the Board of Governors Office 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:

Amber F. McReynolds,

Chairman, Board of Governors.

UNITED STATES POSTAL SERVICE OFFICE OF THE BOARD OF GOVERNORS

Certification of Governors' Vote on Governors' Decision No. 25-1

    Consistent with 39 U.S.C. 3632(a), I hereby certify that, on May 8, 
2025, the Governors voted on adopting Governors' Decision No. 25-1, and 
that a majority of the Governors then holding office voted in favor of 
that Decision.

    Date: May 8, 2025.


[[Page 21088]]


Lucy C. Trout,

Acting Secretary of the Board of Governors.

[FR Doc. 2025-08709 Filed 5-15-25; 8:45 am]
BILLING CODE 7710-12-P


</pre></body>
</html>
Indexed from Federal Register on May 16, 2025.

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.