Postal Regulatory Commission issues Final Rules on Minimum Contribution of Competitive Products to Institutional Cost

Washington, DC – The Postal Regulatory Commission (PRC) issued Order No. 4963 adopting final rules for the share of institutional costs that U S Postal Postal Competitive products must contribute. The previous share requirement was 5.5 percent of institutional costs. For Fiscal Year 2019, the PRC has determined the appropriate share as 8.8 percent. 


The PRC addressed two general topics that provide necessary background.

First, the Commission described developments in the parcel delivery market and discussed how both the market and the Postal Service’s position in the market have changed since the Commission first set the appropriate share in 2007 and since the Commission last reviewed the appropriate share in 2012.

Second, the Commission discussed the appropriate share requirement and its purpose in the context of the statutory scheme for regulating competitive products.

A copy of the order can be found at

Postal Regulatory Commission Approves Price Changes for USPS Competitive Services

The Postal Service proposes changes in prices of general applicability for certain competitive products. The changes are scheduled to become effective January 27, 2019. The Commission approves the proposed price changes and updates the Mail Classification Schedule (MCS) to reflect the new prices. A draft of the applicable MCS changes is attached to this Order. The complete PRC information is available at

Postal Regulatory Commission Approves Price Changes for USPS Competitive Services

U S Postal Service to remove overweight items from the postal network

The Postal Service is amending Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) to implement a process to remove overweight items from the postal network.

The Postal Service published a notice of proposed rulemaking on April 20, 2018, (83 FR 17518-17519) to amend the DMM to add a process, which included a fee, for removing overweight items that are found in the postal network. Items that exceed the 70 pound weight limit are nonmailable and are not provided service.

The final rule is scheduled for publication Federal Register Notice (“FRN”) August 29, 2018, the effective date for the rule.

Once it is published it will be available on this page in an official form. Until then, you can download the unpublished PDF version – USPS Overweight Items FRN Rule Notice 2018-18481

UPDATE: Latest Action on H.R.5524 – To amend title 39, United States Code, to require the United States Postal Service to establish rates for delivery of inbound international mail. JUNE 06, 2018

H.R.5524, introduced by Representative Kenny Marchant on 04/16/2018, in response to US merchants’ objections about low international postal rates for inbound ePackets from China Post and other national postal operators (“NPOs”), is currently in the  Subcommittee on Trade, and today picked up two additional sponsors; Rep. Lance, Leonard [R-NJ-7], and Rep. Poe, Ted [R-TX-2].

Postal Service’s Pricing Methodology Upheld by Appeals Court

May 25, 2018

“The U.S. Court of Appeals for the District of Columbia Circuit on May 22 upheld The U.S. Postal Service’s method to set prices for competitive services. The ruling comes in the wake of President Donald Trump’s assertion that USPS doesn’t charge enough to deliver its packages.” – Postal Times

Postal Service’s Pricing Methodology Upheld by Appeals Court

Please contact us to schedule for a consultation, an in depth assessment, report, or custom research project on the court’s action, including the current White House Executive Order establishing a Task Force to conduct a thorough evaluation of the operations and finances of the USPS,

(i)    the expansion and pricing of the package delivery market and the USPS’s role in competitive markets;;

(ii)   the decline in mail volume and its implications for USPS self-financing and the USPS monopoly over letter delivery and mailboxes;

(iii)  the definition of the “universal service obligation” in light of changes in technology, e‑commerce, marketing practices, and customer needs;

(iv)   the USPS role in the U.S. economy and in rural areas, communities, and small towns; and

(v)    the state of the USPS business model, workforce, operations, costs, and pricing.

And develop recommendations for administrative and legislative reforms to the United States postal system.