[Federal Register: November 3, 2004 (Volume 69, Number 212)]
[Rules and Regulations]
[Page 63946-63947]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03no04-5]
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POSTAL SERVICE
39 CFR Part 20
Discontinuance of Volume Discount Availability for IPA and ISAL
Mailers
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: This final rule deletes International Mail Manual (IMM)
292.212, 292.213, and 293.75, which authorized mailers who spent $2
million or more combined on International Priority Airmail (IPA) and
International Surface Air Lift (ISAL) in the preceding Postal Service
fiscal year to receive discounted postage rates.
EFFECTIVE DATE: November 3, 2004.
FOR FURTHER INFORMATION CONTACT: Rick Klutts, 202-268-7268.
SUPPLEMENTARY INFORMATION: On July 28, 2004, the Postal Service
published for comment in the Federal Register (69 FR 45002-45003) a
proposed rule to delete standards that authorize postage discounts for
mailers who spend $2 million or more combined on International Priority
Airmail (IPA) and International Surface Air Lift (ISAL) in the
preceding Postal Service fiscal year. The Postal Service proposed to
discontinue these discounts due to recent Postal Service reviews of
costs for providing these services. These cost reviews identified
increases in transportation, terminal dues, and other costs that have
all risen while published rates for IPA and ISAL have remained static
since 2001. When costs rise above the rate we are charging, we are
obliged to adjust prices and discounts (in this case IPA and ISAL) so
they are not subsidized by other domestic or international product
offerings. These changes do not affect the standards for existing or
prospective customers who use IPA or ISAL mail and participate or would
like to participate in the International Customized Mail (ICM) service
agreement program as defined in IMM 297.
The Postal Service requested comments on the proposed rule by
August 18, 2004. Comments were received from two parties, one who
voiced opposition to the proposal, and one whose comment was outside
the scope of the proposed rule.
An industry organization respondent questioned the rationale for
the proposal and requested a more detailed cost analysis; this
commenter also cited a 1998 report to Congress that states there is
adequate cost coverage for these products. In addition, the commenter
suggested a correlation between the proposed discontinuance of volume
discounts and International Customized Mail (ICM) agreements. As
pointed out in the supplementary information, the Postal Service is
obligated to offer its services at a rate that covers both average
attributable cost and institutional cost. When costs rise above the
rate we are charging, adjustments to prices and discounts (in this case
IPA and ISAL) are required so they are not subsidized by other domestic
or international product offerings. Moreover, since 1998,
transportation costs, terminal dues costs, and other costs have risen
while published rates for IPA and ISAL have remained static since 2001.
The other comment was made by an international mailer who enters
mail under an ICM agreement. The mailer stated that IPA was a very good
service and they did not want to lose their current discount. Since
this proposed rule does not address ICMs, this comment falls outside
the scope of this rulemaking and therefore will not be addressed at
this time. Additionally, nothing in this change precludes this mailer
from entering IPA and ISAL mailings under their existing ICM agreement.
For the reasons discussed above, the Postal Service adopts the
following amendments to the International Mail Manual, which is
incorporated by reference in the Code of Federal Regulations. See 39
CFR Part 20.1.
List of Subjects in 39 CFR Part 20
International postal service, Foreign relations.
PART 20--[AMENDED]
0
1. The authority citation for 39 CFR part 20 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 401, 404, 407 and 408.
0
2. Amend the International Mail Manual as set forth below:
International Mail Manual (IMM)
* * * * *
2 Conditions for Mailing
* * * * *
290 Commercial Services
* * * * *
292 International Priority Airmail Service
* * * * *
292.2 Postage
292.21 Rates
* * * * *
[[Page 63947]]
(Delete 292.212 and 292.213; renumber current 292.214 through 292.217
as new 292.212 through 292.215.)
* * * * *
293 International Surface Air Lift (ISAL) Service
* * * * *
293.7 Postage
* * * * *
(Delete 293.75; renumber current 293.76 as new 293.75.)
* * * * *
Neva R. Watson,
Attorney, Legislative.
[FR Doc. 04-23997 Filed 11-2-04; 8:45 am]
BILLING CODE 7710-12-P