Federal Register: July 14, 1998 (Volume 63, Number 134)Rules and RegulationsPage 37945-38033From the Federal Register Online via GPO Access [wais.access.gpo.gov]

DOCID:fr14jy98-18

[Page 37945]

Part II

Postal Service

39 CFR Part 111

Domestic Mail Manual Changes to Implement the Rate, Fee, and Classification Changes in Docket No. R97-1; Final Rule

[Page 37946]

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual Changes To Implement the Rate, Fee, and Classification Changes in Docket No. R97-1

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement the rate, fee, and classification changes for all classes of mail included in the Decision of the Governors of the Postal Service in Postal Rate Commission Docket No. R97-1.

EFFECTIVE DATE: This final rule is effective at 12:01 a.m. on January 10, 1999.

FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, 202-268-6351 (all topics); Paul Lettman, 202-268-6261 (Parcel Post); Thomas DeVaughan, 202-268-4491 (Business Reply Mail).

SUPPLEMENTARY INFORMATION: On July 10, 1997, the Postal Service, acting under sections 3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 3622, 3623), fileda request for a recommended decision by the Postal Rate Commission (PRC) on proposed rate, fee, and classification changes. The PRC designated this filing as Docket No. R97-1. A notice of filing, with a description of the Postal Service's proposals, was published by the PRC on July 23, 1997, in the Federal Register (62 FR 39660).

On March 16, 1998, the Postal Service published for public comment in the Federal Register a proposed rule (63 FR 12864) that provided information on the implementation rules for the rate, fee, and classification changes that the Postal Service proposed to adopt if its requested changes in Docket No. R97-1 were recommended by the PRC and approved by the Governors of the Postal Service.

Pursuant to 39 U.S.C. 3624, on May 11, 1998, the PRC issued its Recommended Decision on the Postal Service's Request to the Governors of the Postal Service. The PRC recommendations made revisions to some of the mail classification structure, rates, and fees requested by the Postal Service. Based on an extensive analysis of the PRC's Recommended Decision and deliberation as to its consequences to the Postal Service and its customers, and pursuant to 39 U.S.C. 3625, the Governors acted on the PRC's recommendations on June 29, 1998. The Governors determined to approve the PRC's Recommended Decision except for the recommended classifications and fees for Prepaid Reply Mail and the recommended ``shell classification'' for Courtesy Envelope Mail. The Governors expressed concern about the necessity for these separate classifications. The Governors have encouraged management to consider whether refinements to the approved Qualified Business Reply Mail (QBRM) classifications and fees can be developed which improve upon the accounting options and fees approved for QBRM. The Postal Service plans to further study the issue of consumer automation discounts.

The Governors allowed under protest, and returned to the Postal Rate Commission for reconsideration, the rate schedules for Within County Periodicals, Library Rate Mail, and DDU Parcel Post.

The Board of Governors set an implementation date of January 10, 1999, for the approved rate, fee, and classification changes to take effect, except for delivery confirmation and the electronic form of return receipt (signature confirmation) service for delivery confirmation customers. The Board of Governors determined that implementation of the new delivery confirmation service approved in the Governors' Decision, as well as the classification change allowing delivery confirmation as a sole prerequisite for return receipt service, should take place after the effective date established for the other changes approved and allowed by the Governors, but not later than June 1, 1999. Later implementation will provide time for deployment of the technology used to provide these service features. The Board of Governors determined that an effective date for delivery confirmation and the electronic form of return receipt (signature service) will be selected through future action by the Board.

A notice announcing the Governors' decision and the issuance of final Domestic Mail Classification Schedule and Rate Schedule changes is contained in a separate notice to be published in the Federal Register.

This final rule contains the DMM standards adopted by the Postal Service to implement the Governors' decision. The revised DMM standards will take effect on January 10, 1999. The standards for delivery confirmation and the electronic form of return receipt (signature confirmation) service are not included in this final rule. They will be contained in a separate Federal Register notice when an implementation date is set by the Board of Governors.

Part A of this notice summarizes major changes that have been made to or added to the proposed implementation standards since the proposed rule. This includes changes made because of differences in the Postal Service's proposal and the PRC's recommended decision, changes made in response to the Governors' decisions, and changes made by the Postal Service in response to mailer comments or for other reasons. Part B provides a summary of all of the changes in Domestic Mail Manual standards made as a result of Docket No. R97-1 and this rulemaking process. Part C contains an analysis of comments received on the proposed rule and the Postal Service responses. Part D summarizes the changes to the DMM by DMM module, followed by the text of the revised DMM standards.

A. Major Changes and Additions Other Than Rate and Fee Levels Since the March 16, 1998, Proposed Rule

1. Express Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not recommend the proposed surcharges for hazardous medical materials and for other hazardous materials. Therefore, provisions for hazardous materials surcharges have not been included in the DMM.

2. Priority Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not recommend the proposed surcharges for hazardous medical materials and for other hazardous materials. Therefore, provisions for hazardous materials surcharges have not been included in the DMM. b. Weight

The weight at which heavy First-Class Mail pieces must be paid at the Priority Mail rates is increased from First-Class Mail weighing over 11 ounces to First-Class Mail weighing over 13 ounces. At the mailer's option, any other mail matter (including regular First-Class Mail weighing 13 ounces or less) may be mailed as Priority Mail.

3. First-Class Mail

a. Hazardous Materials Surcharges

The Postal Rate Commission did not recommend the proposed surcharges for hazardous medical materials and for other hazardous materials. Therefore, provisions for hazardous materials surcharges have not been included in the DMM.

[Page 37947]b. Heavy Piece Discount

The additional heavy piece presort discount of $0.046 for the first ounce of mailpieces weighing more than 2 ounces remains in effect. c. Maximum Weight

The maximum weight of First-Class Mail is increased from 11 ounces to 13 ounces. d. Prepaid Reply Mail

Prepaid Reply Mail will not be implemented.

4. Periodicals

a. Eligibility for In-County High Density Rates

Eligibility for the high density rate for In-County pieces will be revised to allow walk-sequenced pieces for a carrier route to qualify when there are either a minimum of 125 pieces for a carrier route or addressed pieces for at least 25 percent of the total active possible deliveries on a carrier route.

5. Standard Mail (A)

a. Hazardous Materials Surcharges

The Postal Rate Commission did not recommend the proposed surcharges for hazardous medical materials and for other hazardous materials. Therefore, provisions for hazardous materials surcharges have not been included in the DMM. b. ``Presorted Standard'' Marking

A two-year transition period (instead of one year) will be permitted for mailers to change their ``Bulk Rate'' markings to ``Presorted Standard.'' Until January 10, 2001, mailers of regular rate Standard Mail (A) material (matter at regular Presorted Standard Mail (A), regular automation, and regular Enhanced Carrier Route rates) may use either the ``Bulk Rate'' or the ``Presorted Standard'' markings or their respective authorized abbreviations on their mailings. At the mailer's option the ``Presorted Standard'' marking or its abbreviation may be used instead of ``Bulk Rate'' or its abbreviation effective immediately. c. ``RSS'' Marking

The Postal Service will not require a separate ``RSS'' marking for pieces that are subject to the residual shape surcharge. d. Pieces Not Qualifying for Standard Mail

  (A). Mailers have indicated that they may have pieces prepared with Standard Mail (A) rate markings that cannot be mailed at a Standard Mail (A) rate under the provisions for ``residual'' pieces set forth in the proposed rule and this final rule. Reasons include the mailer having pieces remaining in a mailing job that cannot be matched to a correct 5-digit ZIP Code, or the mailer choosing not to hand-sort handwritten pieces that could not be barcoded and sorted by a multi- line optical character reader (MLOCR). In such instances, mailers must pay single-piece First-Class Mail or Priority Mail postage on the pieces.

If mailers desire to receive First-Class or Priority Mail service as applicable based on the weight of the mailpieces (including forwarding and return services), they must re-envelope or otherwise prepare the mailpieces so that they bear only the proper First-Class Mail or Priority Mail rate markings, ancillary service endorsements, Address Change Service (ACS) codes, etc. Metered pieces weighing over 13 ounces and less than 16 ounces must always be prepared under this method.

Except for metered pieces weighing over 13 ounces and less than 16 ounces, mailers who do not desire to receive First-Class or Priority Mail service on such pieces may submit them ``as is'' (i.e., bearing the Standard Mail (A) markings and endorsements). No additional markings or postage are to be added to these pieces. First-Class Mail or Priority Mail postage must be paid for these pieces using the appropriate First-Class or Priority Mail postage statement. Except for metered pieces weighing over 13 ounces and less than 16 ounces, mail bearing metered or precanceled stamp postage must, under this option, pay the difference between the postage affixed and the First-Class Mail or Priority Mail rates by means of an advance deposit account or by affixing a meter strip for the appropriate amount to the postage statement. If the pieces weigh 13 ounces or less, mailers must use special line items on the new First-Class postage statements under the heading ``From Standard Mail (A)'' to record the pieces mailed. This option may be used for fewer than 200 pieces of permit imprint mail only if the pieces were part of a larger mailing job and are submitted for acceptance along with the mail and a Standard Mail (A) postage statement for the other pieces in the same mailing job. Metered pieces weighing over 13 ounces and less than 16 ounces cannot use this option since there is no postage statement on which they can be reported and therefore must be re-enveloped and prepared as Priority Mail.

6. Standard Mail (B)

a. Barcoded Discounts

  (1) Additional Barcode Option. A fourth barcode symbology, UCC/EAN Code 128, has been added. The USPS, in cooperation with the parcel shipping industry, has adopted the UCC/EAN Code 128 as its preferred code structure and symbology standard. The UCC/EAN Code 128 permits encoding of either the 5-digit ZIP Code or the ZIP+4 code. The ZIP Code information must be preceded by the Application Identifier ``420'' that signifies a domestic ZIP Code, and must not include the trailing verifier character ``9'' used with other barcode symbologies. The UCC/ EAN code 128 will become mandatory for the barcoded discount in five years (January 10, 2004). During the 5-year phase-in period, UCC/EAN Code 128, as well as USS Code 128; USS Code I 2/5; and USS Code 39 symbologies will be permitted.

  (2) Numeric Equivalent of Barcode. The requirement to print human- readable characters representing the numeric equivalent of the ZIP Code information in the barcode (i.e., omitting the verifier character or, for UCC/EAN Code 128, omitting the 3-digit application identifier characters) near the barcode will not be required if the barcode is on the same label as the address block and is placed in close proximity to the address. The human-readable numeric equivalent of the ZIP Code information in the barcode will be required for barcodes not printed on the same label as the address block on mailpieces.

  (3) Parcel Post ASF Barcoded Rate Exclusion. The exclusion from the barcoded discount of machinable pieces eligible for DBMC rates that are entered at an auxiliary service facility (ASF) has been revised. Since the Phoenix, Arizona, ASF has parcel barcode reading equipment, machinable pieces of Parcel Post DBMC rate mail entered at the Phoenix ASF will be eligible for barcoded discounts. Since no other ASFs have barcode reading equipment, DBMC rate mail entered at ASFs other than Phoenix will not be eligible for the barcoded discount. b. Hazardous Materials Surcharges

The Postal Rate Commission did not recommend the proposed surcharges for hazardous medical materials and for other hazardous materials. Therefore, provisions for hazardous materials surcharges have not been included in the DMM.

[Page 37948]c. Parcel Post BMC Presort and OBMC Presort Discounts

  (1) Mail Preparation. The proposed requirement to prepare machinable parcels in pallet boxes measuring 72 inches high and to fill the boxes with at least 54 inches of mail to qualify for these discounts is revised. The new requirement is to prepare machinable parcels in pallet boxes measuring 69 inches high and to fill the boxes with at least 52 inches of mail to qualify for these discounts. The preparation requirements for nonmachinable mail did not change.

  (2) Documentation. The requirement for documentation listing number of pieces per individual pallet is eliminated. d. Parcel Post Oversized Pieces.

The 10% limit per mailing of pieces that measure over 108 inches but not more than 130 inches in combined length and girth is removed. In its place the PRC recommended and the Governors of the Postal Service approved oversized rates for such pieces. These oversized rates are greater than the rates for 70-pound parcels. e. Parcel Post DSCF Rate

  (1) Sacking Requirements Revised. The minimum number of pieces per 5-digit sack is revised from 10 pieces to 7 pieces. A provision also is added to allow one overflow sack per 5-digit destination. The overflow sack has no minimum quantity requirement.

  (2) New Pallet Preparation Option Added. In response to mailer comments that the pallet minimums were too high, a new pallet preparation option has been added. This option allows preparation of 5- digit pallets with a minimum of 35 pieces and 200 pounds of mail, provided the average number of pieces placed on pallets qualifying for the DSCF rate in such a mailing is at least 50 pieces. In order to document that no pallet contains less than 35 pieces and 200 pounds and that the average number of pieces per pallet claiming the DSCF rate is at least 50 pieces, mailers will be required to submit detailed documentation and place sequential identification numbers on qualifying pallets of DSCF rate mail. The documentation must list each pallet in sequential order by pallet identification number. The listing must show for each pallet: the pallet identification number, the 5-digit ZIP Code of the pallet, the total weight of pieces on the pallet, the total number of pieces on the pallet, and the cumulative total of pieces (i.e., the number equal to the number of pieces for that pallet plus the sum of the pieces on all pallets listed above it).

  (3) Overflow Provisions for Palletized Mail Added. Provisions are added to allow overflow from 5-digit pallets to be placed in corresponding 5-digit sacks. The overflow 5-digit sacks have no minimum quantity requirement, and the pieces placed in them will qualify for the DSCF rate. Mailers will also have the option of preparing a 5-digit overflow pallet. However, the pieces on overflow pallets, which by definition contain less than the minimum quantity required for a qualifying DSCF rate pallet, are not eligible for DSCF rates and are subject to the DBMC rates.

  (4) Pallet Boxes. The prohibition against use of pallet boxes on pallets for the DSCF rate is eliminated. Pallet boxes on pallets will be permitted for any 5-digit facility that can handle pallets, provided the pallet boxes measure no more than 60 inches high and meet the pallet box provisions in DMM M041. Mail prepared in pallet boxes is subject to the same pallet minimum preparation options as parcels placed directly on pallets.

  (5) Sacks on Pallets. Under DMM M045.12, mailers may consolidate 5- digit sacks prepared under DMM M630 and/or under DMM M045.11 that qualify for the DSCF rate on an SCF pallet. Both 5-digit sacks meeting or exceeding the 7-piece minimum and overflow sacks (overflow from sacks and overflow from pallets) may be palletized in this manner. However, if in the same mailing, mail is palletized under M045.11.1 and sacked under M630, the sacks that are prepared as overflow from pallets must, at the time of acceptance, be separated from sacks prepared under M630. SCF pallets containing 5-digit sacks qualifying for the DSCF rate may be prepared without having to first prepare all possible 5-digit pallets and without having to meet a 250-pound pallet minimum. A special pallet label is specified for these pallets in M045.

  (6) Additional Information Pertaining to Drop Shipment Product. Mailers must use the following additional information when using the Drop Shipment Product to determine whether mail for a 5-digit ZIP Code delivery unit may be prepared on pallets to qualify for the DSCF rate. The DMM standards are revised to specify that when the Drop Shipment Product shows that mail for a single 5-digit ZIP Code area is delivered from more than one facility, the facility listed in the Drop Shipment Product that delivers mail to the majority of city carrier routes will be considered the delivery unit for parcel post. Two exhibits, Exhibits E652.6.0 and 652.7.0 that contain exceptions to the ``majority of city carriers'' rule, are also added to the DMM. If a 5-digit ZIP Code is listed in DMM Exhibit E652.6.0 or E652.7.0, the facility listed in one of those exhibits must be used to determine the name of the delivery unit. The name of the delivery unit must then be looked up in the Drop Shipment Product to determine if mail for it, and therefore mail for the 5-digit ZIP Code, can be prepared on pallets to qualify for the DSCF rate. At some point in the future the information in these two exhibits will be incorporated in the Drop Shipment Product.

  (7) Nonmachinable Outsides. Nonmachinable outside (NMO) parcels by definition cannot be prepared in sacks because they will not fit in a sack. Therefore, NMOs must be prepared directly on pallets or in pallet boxes on pallets. If overflow pallets are prepared, the pieces on such pallets are subject to the DBMC rates. The DSCF rate is not available for NMOs at those 5-digit delivery units that cannot handle palletized mail as listed in the Drop Shipment Product and in Exhibits E652.6.0 and E652.7.0.

  (8) Exceptions to DMM Exhibit E652.5.0. Provisions are added to allow mailers to submit a written request to the Area Manager, Operations Support, for permission to bring palletized mail for a 5- digit ZIP Code area listed in DMM Exhibit E652.5 to the DSCF rather than to the applicable BMC. Such exceptions must be requested at least 15 days in advance and may be granted for a limited period of time only.

  (9) Separation of Perishable and Nonperishable Parcels. The requirement to separate perishable and nonperishable parcels is deleted from the final DMM rules. f. Parcel Post DDU Rate

  (1) Pallet Boxes. The prohibition against the use of pallet boxes on pallets is eliminated. Pallet boxes on pallets will be permitted for any 5-digit facility that can handle pallets, provided that the pallet boxes measure no more than 60 inches high and meet the pallet box provisions in DMM M041.

  (2) Additional Lists Pertaining to Drop Shipment Product. Mailers must use the following additional information when using the Drop Shipment Product to determine the location of the delivery unit for a 5-digit ZIP Code area. When mail for a single 5-digit ZIP Code area is delivered from more than one facility, the facility listed in the Drop Shipment Product that delivers mail to the majority of city carrier routes is the delivery unit at which mail must be entered to claim the DDU rate. There are two exceptions to this general rule. Two

[Page 37949]exhibits, Exhibit E652.6.0 and Exhibit E652.7.0 are added to DMM E652. Exhibit E652.6.0 contains exceptions to the ``majority of city carrier routes'' rule. Exhibit E652.7.0 contains other anomalous situations including those where a parcel annex is used to deliver mail for multiple 5-digit ZIP Codes. If a 5-digit ZIP Code is listed in DMM Exhibit E652.6.0 or Exhibit E652.7.0, the facility location in one of those lists is the delivery unit to which the mail must be brought to qualify for the DDU rate. This facility must be looked up in the Drop Shipment Product to determine if that facility can handle pallets and (for facilities listed in Exhibit E652.6.0) to determine the address of the facility.

  (3) Pallet Stacking. Mailers may stack pallets of mail entered at destination delivery units provided that the mailer unloads and unstacks the pallets at the delivery unit and removes any strapping material.

  (4) Appointments. To facilitate the scheduling of drop shipments to delivery units, the Postal Service will allow standing appointments if shipment frequency is weekly or more often. A provision also has been added in E652.3.4 to specify that appointments are required for mixed loads of Periodicals and Standard Mail (B) entered at destination entry rates. DMM E250.2.4 already contains a similar provision for DDU entry of mixed loads of Periodicals and Standard Mail.

  (5) Grace Period for Late Arrivals. The grace period allowed for late arrival of shipments at DDUs, previously stated to be 1 hour, is revised to 20 minutes. g. Markings

  (1) Parcel Post. Except for mail qualifying for a drop shipment rate, mailers will be given a one-year grace period, until January 10, 2000, to print the ``Parcel Post'' or ``PP'' markings in the postage area. As of January 10, 1999, Drop Shipment rate mail must show the ``Parcel Post'' or ``PP'' marking in the postage area and the marking ``Drop Ship'' or ``D/S'' in either the postage area or on the line above or two lines above the address. An exception is that DBMC rate mailers currently using the ``DBMC Parcel Post'' or ``DBMC PP'' marking may continue to do so until January 10, 2000.

  (2) Standard Mail (B) Other than Parcel Post. Mailers not already doing so will have until January 10, 2000, to place the current required subclass markings ``Bound Printed Matter,'' ``Special Standard,'' and ``Library Mail'' or ``Library Rate'' in the postage area (as opposed to elsewhere on the mailpiece).

  (3) Bound Printed Matter. At the mailer's option the ``Presorted'' marking may be used instead of ``Bulk Rate'' effective immediately. (This marking will be required effective January 10, 2000.) In addition, mailers may use the marking ``Presorted Standard'' (or ``PRSRT STD'') instead of ``Presorted'' (or ``PRSRT'') wherever the ``Presorted'' marking is required or permitted.

7. Special Services

a. Bulk Insurance

A provision requiring an electronic manifest to qualify for the bulk insurance discount was recommended by the PRC and approved by the Governors of the Postal Service. Therefore, one of the requirements to obtain this discount will be to provide a hard copy of Form 3877, Firm Mailing Book for Accountable Mail (or facsimile), and a copy of Form 3877 on a diskette or other electronic medium. When systems that electronically capture information on accountable mail are completed and programming changes that will tie the St. Louis ASC into these systems are completed, mailers will be required to file claims electronically. When or before these changes and systems are completed, bulk insurance mailers will be provided with instructions for a new format for the electronic Form 3877 and with instructions for electronically filing claims. b. Business Reply Mail

Mailers will have until January 10, 2001, to comply with the standard that Qualified Business Reply Mail pieces and other BRM pieces bearing a barcode that measure more than 4\1/4\ inches by 6 inches must meet a minimum thickness requirement of .009 inch. In addition, mailers of QBRM and other BRM pieces that bear a barcode will be given until January 10, 2001, to meet the amended requirements for the barcode clear zone, window placement for lower right barcodes, and placement of the leftmost bar of lower right barcodes. The barcode specifications that are in DMM C840 will be required, rather than optional. The basis weight requirement for envelopes in C810.7.1 will not apply to BRM. BRM envelopes must continue to meet a minimum paper basis weight of 20 pounds (measured using 500 sheets of 17- by 22-inch paper). The standard in current S922.6.4 that envelope material must not have a phosphorescence exceeding 4.0 phosphor meter units is retained and corrected to state that envelope material must not have a red fluorescence exceeding 4.0 phosphor meter units. c. Delivery Confirmation

Standards concerning delivery confirmation were removed pending an implementation date. d. Merchandise Return Service

The Postal Service revised the requirements for preprinted rate markings. The Priority Mail marking will not be required to be preprinted on all matter that might be subject to that rate upon return. It is understood that permit holders may not be able to predict whether a piece that might be returned will weigh over 13 ounces but less than 16 ounces and therefore need a Priority Mail marking on the merchandise return label. Therefore, the permit holder must preprint a Priority Mail marking only when it is desired that the mail matter be returned at those rates regardless of its weight. Pieces prepared with merchandise return labels that do not contain a preprinted rate marking will be returned at the First-Class Mail rates if weighing 13 ounces or less, at the Priority Mail rates if weighing over 13 ounces but less than 16 ounces, and at the Parcel Post rates if weighing 16 ounces or more. d. Return Receipt

The Postal Service determined not to revise DMM D042.1.7.

B. Summary of all DMM Revisions for R97-1

1. Express Mail

a. Rate Highlights

Overall, Express Mail rates will increase 9%. For Post Office to Addressee service, the letter rate will increase to $11.75 and the 2- pound flat rate will increase to $15.75. The fee for pickup service will increase from $4.95 to $8.25 per occurrence. b. Rate Structure

There are no changes to the rate structure.

2. Priority Mail

a. Rate Highlights

On average, Priority Mail rates will increase 5.6%. The fee for pickup service will increase from $4.95 to $8.25 per occurrence. b. Classification and Rate Structure

  (1) Keys and Identification Devices. Keys and identification devices that weigh more than 13 ounces but not more than 2 pounds will be subject to the 2-pound Priority Mail rate plus a $0.30 fee.

  (2) Elimination of Presort Category. The Presorted Priority Mail rate category

[Page 37950]will be eliminated. Therefore, DMM labeling list L102, ADCs--Presorted Priority Mail, also will be eliminated.

  (3) Delivery Confirmation. A new delivery confirmation service will be available with Priority Mail in early 1999. See further details under ``Special Services.''

3. First-Class Mail

a. Rate Highlights

The single-piece first-ounce letter rate will be increased one cent from $0.32 to $0.33, and the rate for each additional ounce will decrease to $0.22. The nonstandard surcharges for non-card-rate pieces will not increase and will remain at $0.11 for single-piece rate mail and $0.05 for presorted mail. For card rates, no change will be made to the single-piece rates, nonautomation Presorted rates, automation 3- digit rates and automation basic rates. No change will be made to \3/ 5\-digit automation flat rates. Small increases will be made to other automation rates and Presorted rates. The annual presort mailing fee will be increased from $85.00 to $100.00. b. Classification and Rate Structure

  (1) Increase in Maximum Weight. The maximum weight of First-Class Mail will be increased from 11 ounces to 13 ounces.

  (2) Keys and Identification Devices. Keys and identification devices that weigh 13 ounces or less will be subject to the applicable single-piece letter rate, plus a $0.30 fee and, if applicable, the nonstandard surcharge.

  (3) Qualified Business Reply Mail. A new classification category and rate structure for qualified business reply mail (QBRM) that must be letter-size (including cards), automation-compatible, and barcoded will be added. As a result, the BRMAS fee category will be eliminated. The rate structure for QBRM includes a lower first-ounce rate. The fee structure for QBRM requires an annual permit fee, an annual accounting fee, and a fee for each piece returned. More specific requirements for this new classification category are described under DMM E150 and under ``Special Services'' below. c. Rate Markings

The abbreviation ``PRSRT'' will be permitted for the required ``Presorted'' marking.

4. Periodicals

a. Rate Highlights

There will be average rate increases of 4.6% for Regular, 1.1% for In-County, 8.0% for Nonprofit, and 12.1% for Classroom publications. Authorization fees will not change, except that the additional entry fee decreases from $85.00 to $50.00. b. Classification and Rate Structure

  (1) Per-Piece Rates. Separate 5-digit presort per-piece rates and 3-digit presort per-piece rates will be added for Regular, Nonprofit, Classroom, and In-County subclasses. Furthermore, the 3-digit presort level rates will apply to both unique and nonunique 3-digit ZIP Code prefixes.

To qualify for the nonautomation 5-digit per-piece rates, mail must be prepared in a 5-digit package of six or more pieces and must be containerized as follows: for letter mail, be placed in a 5-digit tray; for nonautomation flat mail, be placed in a 5-digit sack or on any presort level of pallet. To qualify for automation 5-digit per-piece rates for letters, mail must be part of a group of 150 pieces for the same 5-digit or 5-digit scheme, properly placed in a 5-digit or 5-digit scheme tray. To qualify for automation 5-digit per-piece rates for flats, mail must be prepared in a 5-digit package of six or more pieces and placed in any level of sack or on any level of pallet.

To qualify for the nonautomation 3-digit per-piece rates, sacked flat-sized mail must be prepared in a 5-digit package of six or more pieces or in a 3-digit package of six or more pieces, and must be placed in a 3-digit sack; trayed letter-size mail must be prepared in a 5-digit package of six or more pieces or in a 3-digit package of six or more pieces, and must be placed in a 3-digit tray. Palletized flat- sized mail must be prepared in a 3-digit package of six or more pieces and placed on a 3-digit or higher (e.g., SCF, ADC) level of pallet.

To qualify for automation 3-digit per-piece rates for letters, mail must be part of a group of 150 pieces for the same 3-digit or 3-digit scheme and be properly placed in a 3-digit or 3-digit scheme tray. To qualify for automation 3-digit per-piece rates for flats, mail must be prepared in a 3-digit package of six or more pieces and placed in a 3- digit or higher (e.g. ADC or mixed ADC) level of sack or on a 3-digit or higher (e.g., SCF, ADC) level of pallet.

  (2) Eligibility for In-County High Density Rates. Eligibility for the high density rate for In-County pieces will be revised to allow walk-sequenced pieces for a carrier route to qualify when there are either a minimum of 125 pieces for the carrier route, or addressed pieces for at least 25 percent of the total active possible deliveries on the carrier route. c. Mail Preparation

  (1) Automation Letters. Preparation of the 5-digit or 5-digit scheme sort for letter-size automation rate mailings will be revised from a required level of sort to an optional level of sort.

  (2) SCF Sack. The current optional SCF sack for nonletter mail will be revised to a required level of preparation. Preparation of an optional origin/required entry SCF sack will be added. Preparation of an optional origin/required entry 3-digit sack will be eliminated. SCF packages are not and will not be permitted. d. Forwarding and Return

Charges for the return of Periodicals mail bearing the ``Address Service Requested'' endorsement will be paid at the First-Class Mail rates for pieces weighing 13 ounces or less and at the Priority Mail rates for pieces weighing more than 13 ounces. (Priority Mail rates also apply to pieces weighing 16 ounces or more.) This is due to the elimination of the Standard Mail (A) single-piece rates discussed below.

5. Standard Mail (A)

a. Rate Highlights

There will be average rate increases of 2.6% for Regular, 2.3% for Enhanced Carrier Route, and 14.0% for Nonprofit subclasses. On average, there will be a 8.0% decrease in Nonprofit Enhanced Carrier Route rates. Nonprofit and Nonprofit ECR pound rates will decrease. Regular and ECR pound rates will remain the same. For the first time, the automation 5-digit letter rate will be lower than the basic Enhanced Carrier Route rate. The basic Enhanced Carrier Route minimum per-piece rates will be the same for letter-size and for nonletter-size pieces. The destination entry discounts will maintain their current discount differentials between BMC and SCF and between SCF and DDU. The annual presort mailing fee will increase from $85.00 to $100.00. b. Rate Structure

  (1) Elimination of Single-Piece Rates. The single-piece Standard Mail (A) rates will be eliminated. This will affect the treatment of pieces in situations where there are fewer than 200 pieces remaining in a mailing job after preparation of an Enhanced Carrier Route and/or an automation rate mailing, situations in which there are fewer than 200 pieces in a mailing job, or situations in which the pieces are not or may not be presorted. See ``Mail Preparation'' below for further information. It also affects the fees for forwarding and return of Standard Mail

[Page 37951](A) as described below under ``Forwarding and Return.'' With one exception, single pieces that weigh less than 16 ounces will be subject to return postage at single-piece First-Class or Priority Mail rates multiplied by 2.472. The exception is that single pieces weighing less than 16 ounces that could qualify for single-piece Special Standard Mail or Library Mail rates will continue to be eligible for those rates upon return if properly endorsed because there are no minimum weight requirements for those two subclasses of Standard Mail (B).

  (2) Residual Shape Surcharge. Pieces that are prepared as parcels or that are not letter-size or flat-size will be subject to a $0.10 per piece residual shape surcharge in addition to the applicable nonletter postage. This surcharge applies to such pieces mailed at all Standard Mail (A) subclasses (Regular, Enhanced Carrier Route, Nonprofit, Nonprofit Enhanced Carrier Route). c. Mail Preparation

  (1) Bulk Rate Markings and Nomenclature. Effective January 10, 2001, the basic rate marking requirements for regular rate mailings (including Enhanced Carrier Route) will be changed from ``Bulk Rate'' or ``Blk. Rt.'' to ``Presorted Standard'' or ``PRSRT STD.'' During the two-year transition period, either the ``Bulk Rate'' or the ``Presorted Standard'' markings or their authorized abbreviations will be acceptable. For consistency, the DMM will use the term ``Presorted Standard Mail (A)'' or ``Presorted Standard'' when referring to the mailings and rates currently referred to as ``nonautomation presort (3/ 5 and basic) Standard Mail (A).'' At the mailer's option the ``Presorted Standard'' or ``PRSRT STD'' marking may be used instead of ``Bulk Rate'' effective immediately.

  (2) Markings for Standard Mail (A) Matter Paid at Standard Mail (B) Rates. Effective January 10, 1999, mailings paid at Standard Mail (B) rates under the exception in DMM E612.4.6 must bear the appropriate Standard Mail (B) rate marking, not the applicable Standard Mail (A) rate marking. DMM E612.4.6 contains provisions that allow Standard Mail (A) matter weighing less than 16 ounces to pay Standard Mail (B) rates if those rates are lower than Standard Mail (A) rates and the matter and the mailing could qualify for the Standard Mail (B) rate except for weight. For example, if a mailer had flat-size printed matter pieces that met the qualifications for Bound Printed Matter in DMM E630 (until January 10, DMM E620) except that the pieces each weighed less than one pound, and if the applicable Bound Printed Matter Rates were less than the applicable Standard Mail (A) rates, the mailer could presort them as Standard Mail (A) flats and claim basic presorted Bound Printed Matter rates. Under this example, if the pieces weighed four ounces and the mailing was only for the local zone, the Bound Printed Matter rates would be lower than the Presorted Standard Mail (A) rates. Therefore, the mailer could claim local zone Bound Printed Matter rates if: (1) the pieces are presorted according the Presorted Standard Mail (A) requirements to 5-digit, 3-digit, ADC, and Mixed ADC (that are similar to the presort requirements for presorted Bound Printed Matter), (2) the pieces are marked ``Presorted'' or ``Presorted Standard'' and ``Bound Printed Matter,'' and (3) documentation is submitted to substantiate that the pieces qualified for the local zone rate.

  (3) Elimination of Single-Piece Rates. Currently, Standard Mail (A) single-piece rates apply to pieces that cannot meet the separate minimum volume requirement of 200 pieces for a Presorted Standard mailing either because the mailing job itself contains fewer than 200 pieces or because after preparing an Enhanced Carrier Route and/or automation mailing the pieces remaining in the mailing job are fewer than 200. Other instances where single-piece rates currently apply include mailers using MLOCRs to prepare the mail who may have pieces remaining in a mailing job that could not be matched to a 5-digit ZIP Code, or mailers who choose not to hand-sort handwritten pieces that could not be barcoded and sorted by a MLOCR. The single-piece Standard Mail (A) rate is eliminated. Mailers will now have three options concerning preparation and payment for mailing pieces that formerly were paid at the single-piece Standard Mail (A) rates.

Option one applies to pieces that remain in a mailing job after a mailer has prepared an Enhanced Carrier Route and/or an automation mailing. A new provision in DMM E630.1.1 and 1.2 will allow pieces in an Enhanced Carrier Route rate mailing and/or in an automation rate mailing that have each separately met a 200-piece or 50-pound minimum quantity requirement to be counted toward the minimum quantity requirement for a Presorted Standard (\3/5\ and basic rate) mailing, provided that (1) the Enhanced Carrier Route rate mailing and/or the automation mailing, and the Presorted Standard mailing are part of the same mailing job, and (2) the mailings are all reported on the same postage statement. Under no circumstances may pieces mailed at the Presorted Standard (nonautomation \3/5\ and basic) rates be counted toward the minimum volume requirements for an Enhanced Carrier Route or an automation rate mailing. The pieces mailed at the Presorted Standard rates under this provision must meet all other requirements for those rates, including the sortation and other preparation requirements in M610. As prescribed in DMM M610.1.1e, the pieces mailed at the Presorted Standard rates must not bear any Enhanced Carrier Route or automation markings. Only ``Presorted Standard'' (or, until January 10, 2001, ``Bulk Rate''), ``Nonprofit Organization,'' or their applicable authorized abbreviations may appear on pieces mailed at the Presorted Standard rates.

Options two and three apply to mailings that cannot qualify for the Presorted Standard Mail rates under the above provisions for residual minimum volume. These might be mailings containing fewer than 200 pieces that cannot be reported on the same postage statement as other mailings in the mailing job because the pieces have a different per piece weight (because of different editions in the same job). They could also be pieces remaining after sorting a mailing job that could not be matched to a correct 5-digit ZIP Code, or pieces that could not be barcoded and sorted by a MLOCR because they bear handwritten addresses and the mailer chose not to hand-sort the pieces. In such instances, mailers must pay single-piece First-Class Mail or Priority Mail postage on the pieces.

Option two is for mailers of such pieces who desire to receive First-Class or Priority Mail service (including forwarding and return services) on such pieces as applicable, based on the weight of the mailpieces. Under this option, mailers must re-envelope the pieces or initially prepare them so that they bear only the proper First-Class Mail or Priority Mail markings, ancillary service endorsements, ACS codes, etc. These pieces must not bear Standard Mail (A) markings, endorsements or ACS codes. This option will also be required for metered mailpieces weighing over 13 ounces, but less than 16 ounces, that cannot be mailed under option one.

Option three is for mailers who have pieces (other than metered pieces weighing over 13 ounces, but less than 16 ounces) that cannot qualify for the Presorted Standard Mail (A) rates, but that are prepared as Standard Mail (A), and who do not desire to receive First- Class Mail or Priority Mail service for those pieces. Under this option the pieces may be submitted ``as is'' (i.e., bearing the Standard Mail (A) markings

[Page 37952]and endorsements). No additional markings or postage are to be added to these pieces. Single-piece First-Class Mail or Priority Mail postage must be paid for these pieces using the appropriate First-Class or Priority Mail postage statement. Mail bearing metered or precanceled stamp postage must pay the difference between the postage affixed at the Standard Mail (A) rates and the single-piece First-Class Mail or Priority Mail rates by means of an advance deposit account or by affixing a meter strip for the appropriate amount to the postage statement. Mail bearing permit imprints must pay the single-piece First-Class or Priority Mail postage by completing the appropriate First-Class or Priority Mail postage statement. If the pieces weigh 13 ounces or less, mailers must use special line items under Part C on the reverse side of Form 3600-R, Postage Statement--First-Class Mail Permit Imprint, or Form 3600-P, Postage Statement--First-Class Mail Postage Affixed. The new line items on the postage statements appear under the heading ``From Standard Mail (A).'' If the pieces weigh over 13 ounces but less than 16 ounces, and are paid with permit imprint, Form 3600- PM, Postage Statement--Priority Mail Permit Imprint, must be appropriately completed to show that the pieces are from a Standard Mail (A) mailing. Option 3 may be used for permit imprint mail only if there are at least 200 pieces to be mailed under this option, or if the pieces were part of a larger mailing job and are submitted for acceptance along with the mail and a Standard Mail (A) postage statement for the other pieces in the same mailing job.

d. Forwarding and Return. With two exceptions, charges for the forwarding and return of Standard Mail (A) are paid at the First-Class Mail rates for pieces weighing 13 ounces or less and at the Priority Mail rates for pieces weighing over 13 ounces. This is because single- piece Standard Mail (A) rates have been eliminated as discussed above. The exceptions are (1) matter returned under Bulk Parcel Return Service (BPRS) and (2) matter that qualifies for a single-piece Special Standard Mail or Library Mail rate under DMM E630 and is endorsed to show that forwarding and return is requested at one of those rates.

6. Standard Mail (B)

a. Rate Highlights

Some Parcel Post rates will decrease and many will increase, some as much as 30%. New rate categories and discounts will be added to Parcel Post as described in 6b below. On average, Bound Printed Matter rates will increase 5%. The discount will increase for sorting Bound Printed Matter to carrier route. Special Standard Mail rates will decrease. Library Mail rates will be the same as Special Standard Mail rates, resulting in a rate increase. The annual fees for destination bulk mail center (DBMC) rates and presorted Special Standard Mail will increase from $85.00 to $100.00. The fee for pickup service for Parcel Post will increase from $4.95 to $8.25 per occurrence. (Pickup service is not available for mailings claiming Parcel Post destination entry rates or Origin Bulk Mail Center (OBMC Presort) Presort discounts.) b. Rate Structure for All Standard Mail (B)

  (1) Barcoded Discount. A discount of $0.03 per piece will apply to machinable pieces in mailings meeting a 50-piece minimum quantity requirement that bear a correct and properly prepared barcode representing the 5-digit ZIP Code (or, for UCC/EAN Code 128, the ZIP+4 code) of the address on the mailpiece. Mail for each Standard Mail (B) subclass (Parcel Post, Bound Printed Matter, Special Standard, and Library Mail) must separately meet the 50-piece minimum volume requirement.

The barcode specifications and clear zone requirements are in DMM C850. UCC/EAN Code 128 as well as USS Code 128; USS Code I 2/5; and USS Code 39 symbologies will be permitted until January 10, 2004. Beginning January 10, 2004, only UCC/EAN Code 128 will be permitted. For all barcode symbologies except UCC/EAN Code 128, the barcode must represent the correct 5-digit ZIP Code of the address on the mailpiece followed by the verifier character ``9.'' The UCC/EAN Code 128 barcode must represent either the correct 5-digit ZIP Code or the ZIP+4 code for the address on the mailpiece. For the UCC/EAN Code 128 barcode, the ZIP Code information must be preceded by the Application Identifier ``420'' that signifies a domestic ZIP Code, and must not include the trailing verifier character ``9'' used with the other barcode symbologies. Mailers must print human-readable characters representing the numeric equivalent of the ZIP Code information in the barcode (i.e., omitting the verifier character or, for UCC/EAN Code 128, omitting the 3-digit application identifier characters) preceded by the word ``ZIP'' near the barcode. An exception is that the numeric equivalent of the ZIP Code information in the barcode will not be required if the barcode is on the same label as the address block and is placed in close proximity to the address.

The barcoded discount reflects the savings for parcels that are routinely processed individually on BMC parcel sorters equipped with barcode readers. Therefore, the discount will not be available for nonmachinable parcels and will not be available for parcels that are intended to bypass individual BMC sortation. The barcoded discount will therefore not be available for: (1) any nonmachinable parcel, (2) Parcel Post mail entered at destination sectional center facility (DSCF) rates, (3) Parcel Post mail entered at destination delivery unit (DDU) rates; (4) Parcel Post DBMC rate mail entered at any auxiliary service facility (ASF) other than the ASF at Phoenix, AZ (which has barcode readers), (5) Bound Printed Matter at the Carrier Route rates, and (6) Presorted Special Standard Mail at the 5-digit rate.

  (2) Delivery Confirmation. A new delivery confirmation service will be available for Standard Mail (B) in early 1999. See further details under ``Special Services.'' c. Rate Structure for Parcel Post

  (1) Presort Discounts for Inter-BMC Rates. A new Origin Bulk Mail Center Presort (OBMC Presort) discount of $0.57 per piece will be available for mail entered at a BMC that meets sortation criteria specific for the type of parcel. Machinable parcels must be sorted to BMCs and nonmachinable parcels must be sorted to BMCs and ASFs. A new BMC Presort discount of $0.22 per piece will be available for pieces that are sorted in the same manner as those qualifying for the OBMC Presort discount (sorted to BMCs if machinable parcels or sorted to BMCs and ASFs if nonmachinable parcels) and entered at any postal facility other than a BMC that accepts bulk mailings. To qualify for either of these rates, pieces must be part of a mailing of at least 50 pieces mailed at Parcel Post rates. See ``Mail Preparation'' below for more details.

  (2) Drop Shipment Rates. New destination delivery unit (DDU) rates will be available for pieces entered at the delivery unit from which the parcels are delivered. DDU rate pieces must be part of a mailing of at least 50 pieces mailed at Parcel Post rates. New rates will also be available for pieces entered at the destination sectional center facility (DSCF). DSCF rate pieces must be part of a mailing of at least 50 pieces mailed at Parcel Post rates. DSCF rate pieces must be sorted to 5-digit ZIP Codes as described under ``Mail Preparation'' below.

  (3) Balloon Rate. Any item weighing less than 15 pounds and measuring over 84 inches (but not more than 108

[Page 37953]inches) in combined length and girth will be charged the applicable Parcel Post rate for a 15-pound parcel.

  (4) Oversized Pieces. Pieces in a Parcel Post mailing will be permitted to measure over 108 inches, but not more than 130 inches, in combined length and girth. These pieces will be charged new oversized rates which are higher than the 70-pound rates. d. Markings

  (1) General. Currently, mailers are required to place subclass markings ``Bound Printed Matter,'' ``Special Standard,'' and ``Library Rate'' or ``Library Mail'' (or authorized abbreviations) on pieces qualifying for those rates. However, the Domestic Mail Manual does not clearly specify where on the mailpiece these markings must appear. Effective January 10, 2000, the current required subclass markings (``Bound Printed Matter,'' ``Special Standard,'' and ``Library Rate'' or ``Library Mail'') or their authorized abbreviations will be required to be placed in the postage area on each mailpiece (i.e., be printed or produced as part of, or directly below, or to the left of the permit imprint indicia, meter stamp or impression, or adhesive or precanceled stamp). The Postal Service prefers that mailers begin to do this as soon as possible.

  (2) Parcel Post Mail. Except for mail qualifying for drop shipment rates, mailers will have until January 10, 2000, to place a ``Parcel Post'' or ``PP'' rate marking in the postage area on all Parcel Post Mail. Effective January 10, 1999, mailings qualifying for the new DSCF and DDU drop shipment rates must bear the marking ``Drop Ship'' or its abbreviation ``D/S'' and the marking ``Parcel Post'' or ``PP.'' The ``Parcel Post'' or ``PP'' marking must appear in the postage area (printed or produced as part of, or directly below, or to the left of the permit imprint or metered postage) and the marking ``Drop Ship'' or ``D/S'' must appear either in the postage area or in the line above or two lines above the address as described in DMM M012. DBMC rate mail will also be required to bear the ``Drop Ship'' and ``Parcel Post'' markings or authorized abbreviations according to these placement rules. However, since DBMC rate mail is currently required to bear the marking ``DBMC Parcel Post,'' the Postal Service is allowing mailers a one-year grace period to convert to the new marking. From January 10, 1999, to January 10, 2000, DBMC rate mailers may use either ``DBMC Parcel Post'' or ``Parcel Post'' and ``Drop Ship'' (or their applicable abbreviations). Effective January 10, 2000, DBMC Parcel Post must bear the new ``Parcel Post'' and ``Drop Ship'' markings, or their applicable abbreviations.

Effective January 10, 1999, the Postal Service is eliminating the requirement to show the 5-digit or 3-digit ZIP Code of the post office of mailing in the drop shipment marking if the postage for the piece is paid with a permit imprint and the office of mailing is in a different 3-digit ZIP Code area from the post office in the return address. The requirement for a ``Bulk Rate'' marking also will be eliminated. Mailpieces bearing the 3-digit ZIP Code of the office of mailing and ``Bulk Rate'' markings will be accepted until January 10, 2000.

  (3) Bound Printed Matter. Effective January 10, 2000, the ``Bound Printed Matter'' marking must appear in the postage area of single- piece rate mail. Until January 10, 2000, the ``Bound Printed Matter'' marking may appear elsewhere on the mailpiece.

The marking ``Bulk Rate'' or ``Blk. Rt.'' will be changed to ``Presorted'' or ``PRSRT'' for bulk Bound Printed Matter mailings. The marking ``Presorted Standard'' or ``PRSRT STD'' also will be permissible. The ``Presorted'' or ``Presorted Standard'' portion of the marking will be permitted to appear in either the postage area or in the line above or two lines above the address. Mailers will be given until January 10, 2000, to begin using the new markings. Between January 10, 1999 and January 10, 2000, mailers may use either ``Bulk Rate'' or ``Presorted'' or their respective authorized abbreviation. At the mailer's option the ``Presorted'' marking may be used instead of ``Bulk Rate'' effective immediately. The name of the rate category also is changing from bulk Bound Printed Matter to presorted Bound Printed Matter. At the mailer's option the ``Presorted'' marking may be used instead of ``Bulk Rate'' effective immediately. Between now and January 10, 2000, the marking ``Bound Printed Matter'' may appear either in the postage area or in the line above or two lines above the address on presorted Bound Printed Matter. Effective January 10, 2000, the ``Bound Printed Matter'' marking on presorted Bound Printed Matter must appear in the postage area.

For carrier route Bound Printed Matter, the need for the ``Bulk Rate'' marking in addition to the ``Carrier Route Presort'' marking will be eliminated effective January 10, 1999. Carrier route Bound Printed Matter mailings must show ``Bound Printed Matter'' in the postage area and ``Carrier Route Presort'' or ``CAR-RT SORT'' in the postage area or in the line above or two lines above the address. Mailers will be given until January 10, 2000, to place the ``Bound Printed Matter'' marking in the postage area. Effective January 10, 1999, mailers will be permitted, but not required, to show the ``Presorted'' or ``PRSRT'' (or ``Presorted Standard'' or ``PRSRT STD'') marking on carrier route Bound Printed Matter in addition to the required ``Bound Printed Matter'' and ``Carrier Route Presort'' or ``CAR-RT SORT'' markings.

The ``Catalog'' or ``Catalog Rate'' marking will be eliminated for Bound Printed Matter. Pieces bearing the ``Catalog'' or ``Catalog Rate'' markings will be accepted until January 10, 2000.

  (4) Special Standard. For Presorted Special Standard mail, the ``Presorted'' portion of the current marking will be permitted to be abbreviated ``PRSRT'' and to appear either in the postage area or in the line above or two lines above the address. Effective January 10, 2000, the ``Special Standard'' marking must be placed in the postage area. f. Mail Preparation--OBMC Presort Discount

To qualify for the Origin Bulk Mail Center Presort (OBMC Presort) discount, a mailpiece must be part of a mailing of at least 50 Parcel Post rate pieces. Pieces eligible for the OBMC Presort rate must be entered at a BMC listed in DMM L601.

Machinable parcels at OBMC Presort rates must: (1) be sorted to BMCs using DMM labeling list L601 and, (2) be prepared in 69-inch pallet boxes placed on pallets, each labeled to a BMC and each containing a minimum of 52 inches of mail. OBMC Presort machinable parcels must not be prepared as parcels placed directly on pallets. Overflow containers (pallets, pallet boxes on pallets, or sacks) are not permitted.

Nonmachinable parcels at OBMC Presort rates must: (1) be sorted to BMCs and ASFs using new DMM labeling list L605 and, (2) be placed directly on pallets (no pallet boxes on pallets are allowed), each labeled to a BMC or ASF and each pallet containing at least 42 inches of mail. Overflow containers (pallets, pallet boxes on pallets, or sacks) are not permitted.

Pallets and pallet boxes also must meet the provisions of M041. The minimum height of mail in a pallet box on a pallet (machinable parcels) or of mail placed directly on a pallet (nonmachinable parcels) is measured from the top of the pallet to the top of the lowest mailpiece (i.e., excludes the height of the pallet).

[Page 37954]g. Mail Preparation--BMC Presort Discount

To qualify for the BMC Presort discount, a piece must meet the same rules for sorting machinable parcels to BMCs and nonmachinable parcels to BMCs and ASFs as required for the OBMC Presort discount above. The difference is that BMC Presort mail may be entered at any postal facility (other than a BMC in DMM L601) that accepts bulk mailings. h. Mail Preparation--DSCF Rate

To qualify for the DSCF rate, a piece must be part of a mailing of at least 50 Parcel Post rate pieces and must be presorted to 5-digit ZIP Code destinations. Pieces eligible for the DSCF rate must be entered at an SCF listed in DMM L005 and must be for delivery within the service area of the entry SCF. For palletized mail only, certain 5- digit ZIP Codes listed in DMM Exhibit E652.5.0 must be entered at the BMC facility serving the SCF.

To qualify for the DSCF rates the pieces must be presorted and labeled to 5-digit sacks or 5-digit pallets (including pallet boxes on pallets). Machinable and nonmachinable parcels may be combined in the same sack or on the same pallet (or same pallet box on a pallet) to meet the minimum sortation requirements. If sacked, each 5-digit sack must contain a minimum of 7 pieces, except that one overflow sack per 5-digit ZIP Code that contains fewer than 7 pieces is allowed. If palletized, each 5-digit pallet (including pallet boxes on pallets) in the mailing must meet one of the following basic minimum preparation requirements: (1) contain at least 50 pieces and 250 pounds of mail, or (2) contain at least 36 inches of mail (height of mail excluding pallet). Overflow from a full 5-digit pallet may be placed in 5-digit sacks or may be palletized. If the overflow is placed in a 5-digit sack it will be eligible for the DSCF rates. If the overflow is placed on a 5-digit pallet it is subject to the DBMC rates. Pallets prepared under the piece and pound minimum and pallets prepared under the minimum height requirement may both be combined in a single mailing. Sacked mail and mail palletized according to either of the minimum quantity options listed above also may be included in the same mailing, provided that at the time of verification the mailer separates sacks that are overflow from the palletized portion of the mailing from sacks that were prepared under the provisions for sacking mail.

If mailers can provide certain documentation, they also may prepare a mailing exclusively under the following alternate pallet preparation option. The minimum number of pieces on a 5-digit pallet (including a pallet box on a pallet) may be 35 pieces and 200 pounds provided that within the mailing the average number of DSCF pieces per 5-digit pallet is at least 50. To substantiate that no pallet contains less than 35 pieces and 200 pounds and that the average number of DSCF pieces per 5- digit pallet in the mailing is at least 50 pieces, mailers must submit documentation that lists each pallet in sequential order by pallet identification number. For each 5-digit pallet containing mail claimed at the DSCF rates the documentation must show: the unique pallet identification number, the 5-digit ZIP Code of the pallet, the total weight of pieces on the pallet, the total number of pieces on the pallet, and the cumulative total of pieces (i.e., the number of pieces on that pallet plus the sum of the pieces on all 5-digit pallets qualifying for the DSCF rates listed before it). Under this alternate pallet option, overflow from a full 5-digit pallet may be placed in 5- digit sacks or may be palletized. If the overflow is placed in a 5- digit sack, it will be eligible for the DSCF rates. If the overflow is placed on a 5-digit pallet, it is subject to the DBMC rates. Mailers using this 50-piece average-per-pallet alternative must exclude pieces that are prepared as overflow under any of the foregoing methods (sacked or palletized) from the computation (documentation) that the 50-piece per pallet average is met.

For any palletization option, mailers may place parcels directly on pallets or in pallet boxes on pallets. If pallet boxes are used they must not exceed 60 inches in height and must otherwise meet the provisions for pallet boxes in DMM M041. All pallets must meet the provisions of DMM M041.

Under any palletization option, the following additional requirements or restrictions also apply. Currently, many BMCs transport mail for certain 5-digit ZIP Code areas directly to the 5-digit associate post office. A list of these 5-digit areas is found in DMM Exhibit E652.5.0. Five-digit pallets prepared for the DSCF rate for the 5-digit ZIP Codes listed in this exhibit must be entered at the BMC, not at the SCF, to qualify for the DSCF rate. This will avoid additional handling and transportation of this mail at the affected SCFs. However, sacked mail for the 5-digit ZIP Codes listed in Exhibit E652.5.0 must always be entered at the SCF (not at the BMC). There is one exception to this rule provided for in DMM E652.1.3. This rule allows a mailer to request from the Area Manager, Operations Support, an exception to the requirement to drop palletized mail for the ZIP Codes in Exhibit E652.5 at the BMC. Such exceptions must be requested at least 15 days in advance and may only be granted for a limited time.

In addition, there are certain associate post offices that cannot handle pallets. A list of these facilities is found in the Drop Shipment Product currently available from the National Customer Support Center (NCSC) in Memphis, TN (1-800-238-3150). For these 5-digit ZIP Codes, the DSCF rate will be available only for mail that can be prepared in 5-digit sacks as described above (i.e., the DSCF rate will not be available for palletized mail for 5-digit delivery units that cannot handle pallets).

In instances where the Drop Shipment Product shows that mail for a single 5-digit ZIP Code area is delivered from more than one facility, the facility listed in the Drop Shipment Product that delivers mail to the majority of city carrier routes will be considered the delivery unit for parcel post. Two exhibits, Exhibits E652.6.0 and E652.7.0 that contain exceptions to the ``majority of city carriers'' rule, are also added to the DMM. If a 5-digit ZIP Code is listed in DMM Exhibit E652.6.0 or E652.7.0, the facility listed in one of those exhibits must be used to determine the name of the delivery unit. The name of the delivery unit must then be looked up in the Drop Shipment Product to determine if mail for it, and therefore mail for the 5-digit ZIP Code, can be prepared on pallets to qualify for the DSCF rate. At some point in the future the information in these two exhibits will be incorporated in the Drop Shipment Product.

Nonmachinable outside (NMO) parcels by definition cannot be prepared in sacks because they will not fit in a sack. Therefore, NMOs must be prepared directly on pallets or in pallet boxes on pallets as described above to qualify for the DSCF rates. If overflow pallets are prepared, the pieces on such pallets are subject to the DBMC rates. The DSCF rate is not available for NMOs at those facilities listed in the Drop Shipment Product, and Exhibits E652.6.0 and E652.7.0, as unable to handle palletized mail.

The Postal Service will unload palletized loads for DSCF rate mail. Mailers must unload sacked and bedloaded mailings. A provision has been added to allow mailers to prepare 5-digit sacks qualifying for the DSCF rate on SCF pallets. Such SCF pallets have no minimum pallet weight and may be prepared without having to first prepare all possible 5-digit pallets. A

[Page 37955]special pallet label is prescribed for this mail in M045.12.

Except for local mailings, appointments for dropping any Standard Mail (B) at an SCF must be scheduled through the appropriate district control center (see DMM E652). i. Mail Preparation--DDU Rate

To qualify for the DDU rate, a piece must be part of a mailing of at least 50 Parcel Post rate pieces. Pieces eligible for the DDU rate must be entered at the postal facility where the carrier who delivers the parcel is located. A list of these facilities and their telephone numbers are in the Drop Shipment Product currently available from the National Customer Support Center (NCSC) in Memphis, TN, 1-800-238-3150. In instances where the Drop Shipment Product shows that a 5-digit area is served by more than one facility, the facility that delivers mail to the majority of city carrier routes should be used for purposes of determining where to enter a destination delivery unit mailing. Exceptions to that general rule are those ZIP Codes listed in DMM Exhibit E652.6.0 and in Exhibit E652.7.0. If a ZIP Code appears in DMM Exhibit E652.6.0 or Exhibit E652.7.0, the mail must be entered at the delivery unit listed in the exhibit for that ZIP Code.

There are no specific sortation requirements for the DDU rates other than the requirement that mail must be separated by 5-digit ZIP Code when unloaded at a DDU facility. Mailers may choose to sack or palletize DDU rate pieces. If so, there are no minimum sack or pallet requirements but the sack or pallet must be labeled as a 5-digit sack or pallet. Mailers may present mail to the DDU prepared in pallet boxes on pallets provided the pallet boxes do not exceed 60 inches in height and otherwise meet the provisions of M041. The Drop Shipment Product and DMM Exhibits E652.6.0 and E652.7.0 may be used to determine which postal facilities can handle pallets. If the facility cannot handle a pallet, and mail is transported to the facility on pallets, the mailer must unload the mail from pallets into a container as specified by the delivery unit.

The mailer will be responsible for unloading all DDU loads (even if palletized). If palletized and the pallets are stacked, the mailer will be responsible for unloading, unstacking, and removing the strapping material from the pallets. Appointments for entry must be made by contacting the DDU at least one day in advance. Mailers desiring electronic confirmation of DDU mail entry also must schedule the appointment through the district control center. Standing appointments may be made if shipment frequency is weekly or more frequently. The grace period for late arrivals will be 20 minutes. j. Destination Entry Mail Preparation--Plant-Verified Drop Shipment (PVDS)

Pieces must be part of a mailing of at least 50 Parcel Post rate pieces to qualify for DDU, DSCF, and DBMC rates and to qualify for OBMC Presort, BMC Presort, and barcoded discounts. When Parcel Post rate pieces are submitted under PVDS procedures, mailers may use the total of all line items for all destinations on a PVDS register or PVDS postage statement to meet the minimum 50-piece volume requirement. This means a mailer may enter fewer than 50 pieces at an individual destination, provided there is a total of at least 50 Parcel Post rate pieces for all of the entry points for that single mailing job listed on the PVDS register or PVDS postage statement. k. Bulk Parcel Post

Bulk Parcel Post is a ``shell'' classification of Standard Mail (B) for which there are no separate rates prescribed. Current DMM E620.2.4e states that ``the bulk Parcel Post rate is the rate applicable to each piece in a bulk Parcel Post rate mailing at the single-piece rate or DBMC rate for that zone for an item equal to the average weight per piece for all parcels in the mailing to that zone, rounded up to the next whole pound.'' This DMM section therefore establishes a method of computing postage at Parcel Post rates. For mailings of identical weight pieces, this averaging method is irrelevant, because the average weight of all the pieces to a zone is always the weight of a single piece. For mailings of nonidentical weight pieces, DMM E620.2.2b states that this method of postage payment may be used only if authorized by the rates and classification service center (RCSC) serving the post office of mailing. The Postal Service is removing sections E620.2.2 and E620.2.4e from the DMM. Postal Service Headquarters is not aware of any mailer that is currently authorized to use this method of postage payment. If in fact there are mailers using this method, they may request that their RCSC issue an authorization for continuation of their postage payment procedure as an alternate mailing system under DMM P730. The Postal Service is implementing various new rates and discounts for Parcel Post that could be considered ``bulk rates'' because they require a minimum volume of 50 pieces per mailing. Therefore, removing references to ``Bulk Parcel Post'' rates in DMM E620 will reduce confusion in the eligibility section for Parcel Post rates in new DMM E630. As indicated above, the Postal Service also will be removing the requirement to mark pieces with a ``Bulk Parcel Post'' rate marking. New DMM E630.6.0 is reserved for any future rates and requirements for the Bulk Parcel Post classification.

7. Special Services

a. Address Correction

No changes will be made to address correction service fees. They will remain at $0.50 for manual corrections and $0.20 for automated (ACS) corrections, per notice issued. b. Address Changes for Election Boards

No changes will be made to the fee. It will remain $0.17. See DMM R900.10.3. c. Business Reply Mail (BRM)

  (1) Fees and Per-Piece Charges. The annual permit fee will increase from $85.00 to $100.00, and the annual accounting fee will increase from $205.00 to $300.00. For regular BRM, mailers will pay the applicable First-Class Mail rates plus a per-piece charge. The per- piece charge for regular BRM with an advance deposit account will decrease from $0.10 to $0.08. The per-piece charge for regular BRM without an advance deposit account will decrease from $0.44 to $0.30.

  (2) Qualified Business Reply Mail. A new classification category and rate structure will be added for qualified business reply mail (QBRM) that must be letter-size, automation-compatible, and barcoded. As a result, the BRMAS fee category will be eliminated. The First-Class rate structure for QBRM includes a lower single-piece first-ounce rate of postage of $0.30 for letters and $0.18 for cards. The fee structure requires an annual BRM permit fee, an annual BRM accounting fee, and for each piece returned a $0.05 per-piece BRM charge.

  (3) Mailpiece Design and Barcoding Requirements. Mailpiece design and barcoding requirements will be revised for both regular BRM and QBRM. Regular BRM pieces that bear a barcode and QBRM pieces that bear a barcode will be required to meet the automation letter mailpiece design requirements in DMM C810 (except C810.7.1) and the barcoding standards in C840 so that there are uniform requirements for all mail that is processed on barcode sorters.

For barcoded and nonbarcoded BRM, references to mailpiece design

[Page 37956]requirements in DMM C810 and C830 will replace current BRM standards relative to reflectance requirements, paper weight, tabs and self- mailers. This will add basis weight, tabbing, and other requirements for all self-mailers. It is likely that self-mailers will be processed on automated equipment. Meeting these requirements will ensure their ability to be processed without damage. QBRM and other barcoded mailpieces must meet all the mailpiece design requirements in C810 except the requirement in C810.7.1. The basis weight requirement for envelopes in C810.7.1 will not apply to BRM. BRM envelopes, including QBRM, must continue to meet the current minimum paper basis weight of 20 pounds (measured using 500 sheets of 17- by 22-inch paper). In addition, the standard in current S922.6.4 that envelope material must not have a phosphorescence exceeding 4.0 phosphor meter units is retained and corrected to state that envelope material must not have a red fluorescence exceeding 4.0 phosphor meter units. Mailers will have until January 10, 2001, to comply with the requirement in DMM C810.2.1c that Qualified Business Reply Mail pieces and other BRM pieces that bear a barcode and measure more than 4\1/4\ inches by 6 inches meet a minimum thickness requirement of .009 inch.

Mailers currently have the option of preparing pieces with lower right barcodes according to the standards in C840. They also currently have the option of preparing the pieces so that the left boundary of the barcode clear zone and of a lower right barcode window is \1/4\ inch closer to the right edge of the mailpiece than required under C840, and to place the leftmost bar of a lower right barcode \1/4\ inch closer to the right edge of the mailpiece than required under C840. The revised standards will no longer permit mailers to use the option that does not meet the DMM C840 requirements. However, mailers will be given until January 10, 2001, to use existing stocks of such prebarcoded BRM envelopes and cards that: (1) Have a barcode clear zone with a left boundary that is 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required in C840); (2) have a lower right barcode for which the leftmost bar is located between 3\1/4\ and 4 inches from the right edge of the piece (not between 3\1/2\ and 4\1/4\ inches as required under C840); (3) have a lower right barcode window, that has a left boundary measuring 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required under C840).

The revised standards also will allow a company logo to appear beneath the delivery address line of a prebarcoded BRM or QBRM mailpiece, provided the logo is placed no lower than \5/8\ inch from the bottom edge of the mailpiece and does not interfere with the barcode clear zone. d. Carrier Sequencing of Address Cards

The fee will increase from $0.17 to $0.20. See DMM R900.1.0. e. Certificate of Mailing

The fees will increase. See DMM R900.4.0. f. Certified Mail

The fee will increase from $1.35 to $1.40. See DMM R900.5.0. g. Collect on Delivery (COD)

COD fees will increase. See DMM R900.6.0. The standards in DMM S921 will also be revised to remove references to the availability of COD with single-piece Standard Mail (A). h. Correction of Mailing Lists

The per-correction fee will be increased from $0.17 to $0.20 and the minimum per-list fee is increased from $5.50 to $7.00. See DMM R900.10.1. i. Delivery Confirmation

A new delivery confirmation service will be available for Priority Mail and Standard Mail (B) in early 1999. This service, when available, will provide the mailer with information about the date of delivery or attempted delivery. This service will be available in two forms: (1) an electronic option for mailers who apply identifying barcodes to each piece, provide an electronic manifest, and retrieve confirmation information electronically; and (2) a retail (manual) option for which delivery information will be available through a USPS Internet address or a toll-free number. Signature (electronic return receipt) service also will be available in early 1999. j. Express Mail Insurance

The fees for merchandise insured for $500.01 to $5,000.00 will increase. See DMM R900.8.0. k. Insured Mail

The fees for insurance service will increase. See DMM R900.9.0. The DMM provisions in S913 will be revised to delete the applicability of insurance to single-piece Standard Mail (A). Since single-piece Standard Mail (A) will be eliminated, mail that was formerly mailed at those rates will be subject to single-piece First-Class Mail or Priority Mail rates as applicable for the weight of the mailpiece. Because First-Class Mail and Priority Mail may be insured, mailpieces formerly mailed at single-piece Standard Mail (A) rates will retain their eligibility for insurance when mailed at First-Class Mail or Priority Mail rates.

In addition, a bulk insurance service discount of $0.40 per piece is introduced. To be eligible for the bulk insurance service discount, mailers must (1) enter mailings of insured articles under an approved manifest mailing system agreement, (2) mail a minimum of 10,000 insured articles annually (a total of all insured articles mailed at multiple locations), (3) provide a hard copy of Form 3877, Firm Mailing Book for Accountable Mail, or facsimile and (4) provide a copy of Form 3877 on a diskette or other electronic medium. Mailers must submit an application for bulk insurance to their local postmaster or designee. The local postmaster or designee will approve or deny the application. Authorized mailers will be provided instructions for filing claims under the bulk insurance service by the local postmaster or designee. When systems that electronically capture information on accountable mail are completed and programming changes that will tie the St. Louis ASC into these systems are completed, mailers will be required to file claims electronically using a new (soft) electronic format for the Form 3877. When or before these changes and systems are completed, bulk insurance mailers will be provided with instructions for a new format for the electronic Form 3877 and with instructions for electronically filing claims. l. Merchandise Return Service

The annual permit fee will increase from $85.00 to $100.00. The charge per returned mailpiece remains at $0.30. Revisions are made to the postage that is applicable to pieces returned that weigh less than 16 ounces and to the marking requirements that specify the return rate of postage. These changes will be necessary because of the elimination of single-piece Standard Mail (A) rates. Matter bearing a merchandise return label without a preprinted rate marking will be returned at: (1) the Parcel Post rate if it weighs 16 ounces or more, (2) the Priority Mail rates if it weighs over 13 ounces but less than 16 ounces, and (3) the First-Class Mail rates if it weighs 13 ounces or less. If the permit holder desires matter to be returned the Special Standard, or Library Mail rates, the permit holder will be required to preprint the appropriate rate marking on the label. If the permit holder desires matter

[Page 37957]weighing 13 ounces or less or matter weighing 16 ounces or more to be mailed at the Priority Mail rates, the mailer will be required to preprint the Priority Mail marking on the merchandise return label. It is recommended but not required that matter to be returned at the First-Class Mail, Priority Mail, or Parcel Post rates bear the applicable preprinted marking ``First-Class'' or ``First-Class Mail,'' ``Priority Mail,'' or ``Parcel Post'' (or ``PP''). m. Money Orders

The fee for domestic money orders will be reduced from $0.85 to $0.80. The fee for a postal military money order will remain at $0.30 and the inquiry fee will remain at $2.75. n. On-Site Meter Settings

There will be increases to two of the on-site meter setting fees. The fee for an additional meter setting will increase from $3.25 to $4.00, and the fee for checking a meter in and out of service will increase from $7.50 to $8.50. No increases will be made to the scheduled appointment setting fee for the first meter ($27.00) or to the unscheduled or emergency setting fee for the first meter ($31.00). o. Parcel Airlift

There will be no changes to parcel airlift fees ($0.40 for up to two pounds, $0.75 for over two up to three pounds, $1.15 for over three up to four pounds, and $1.55 for over four pounds). p. Permit Imprint

The application fee for permit imprints will increase from $85.00 to $100.00. q. Post Office Boxes, Caller Service, and Reserve Call Numbers

Post office box fees (except the $0 fee for all box sizes in Group E) will increase. Fees for caller service and reserve call numbers also will increase (see R900.3.0 and DMM R900.16.0). r. Registered Mail

The maximum value level for registered mail without postal insurance will be decreased from $100.00 to $0.00. All registered mail with a value of $0.01 or more will be automatically provided with insurance (up to a maximum indemnity of $25,000 per piece). Insurance coverage is included in the applicable registered mail fee. Only mail of no value may be mailed as uninsured registered mail. In addition, registered mail fees will increase (see DMM R900.18.0). s. Restricted Delivery

The restricted delivery fee will not change (it remains $2.75). t. Return Receipt

Fees for return receipt will increase from $1.10 to $1.25 when requested at time of delivery and from $6.60 to $7.00 when requested after mailing. u. Return Receipt for Merchandise

The fee for return receipt for merchandise will increase from $1.20 to $1.40, and the fee for a delivery record will increase from $6.60 to $7.00. DMM S917 will be revised to delete the availability of this service with single-piece Standard Mail (A), because single-piece Standard Mail (A) will be eliminated. v. Special Handling

There will be no change to the fees for special handling ($5.40 for matter weighing not more than 10 pounds and $7.50 for matter weighing more than 10 pounds). In addition, DMM S930.1 will be revised to conform to the Domestic Mail Classification Schedule (DMCS) by making it clear that special handling may be used with First-Class Mail and Priority Mail. w. Stamped Cards

A $0.01 fee per stamped card and a $0.02 fee per double stamped card will be added to cover manufacturing and printing costs. A fee of $0.40 will be added to the price of a sheet of 40 stamped cards. This is consistent with the existing fee structure for stamped envelopes, where customers are charged postage plus a small fee for the envelope itself. x. Stamped Envelopes

The fees for some stamped envelopes will increase and others will decrease. In addition, the fee structure will be simplified: except for hologram stamped envelopes, all stamped envelopes will be grouped together by size and whether they are plain or printed. y. ZIP Coding of Mailing Lists

Fees will increase from $60.00 to $70.00 per 1,000 addresses or fraction thereof.

C. Summary of Comments From the March 16, 1998, Proposed Rule

The Postal Service received 32 pieces of correspondence offering comments on the March 16, 1998, proposed rule. Respondents included five major mailer associations; 24 publishers, printers, and mailers; and three individuals.

The specific points raised in the comments are presented below, organized by general comments and then by class of mail and special service.

1. General Comments

Three comments were received concerning the implementation date of the new rates, fees, and classifications. Each commenter indicated that the implementation date should allow time for mailers to make software changes. Suggested dates ranged from 90 days to 8 months after the Board of Governors' decision. The implementation date for Docket No. R97-1 is determined by the Board of Governors of the Postal Service and is outside the scope of this rulemaking process. Postal management did however, consider these comments when it provided advice to the Board of Governors concerning the effective dates.

Various comments also were received that requested changes to rates and fees. One commenter requested that the revised rates not apply to his company for two to five years. These comments are beyond the scope of this rulemaking. The rates, rate structure, and basic standards for rates in Docket No. R97-1 were subject to litigation before the Postal Rate Commission and cannot be revised unilaterally by the Postal Service in a rulemaking process.

Three commenters requested that a single item not be subject to both a hazardous medical materials and an other hazardous materials surcharge. As the PRC did not recommend the proposed hazardous materials surcharges, these comments will not be addressed.

One commenter indicated that the Postal Service should re-solicit comments for any items that were affected by the PRC decision. Because the Postal Service cannot revise rates and DMCS language that is recommended by the PRC and approved by the Governors of the Postal Service, it does not believe that soliciting comments on such items would have any value.

2. Priority Mail

One commenter requested clarification as to whether Priority Mail must always bear the ``Priority Mail'' marking. This commenter further asked whether the ``Priority Mail'' marking will delay the mail when deposited in an overnight First-Class Mail area and, if so, could such mail pieces be marked ``First-Class'' instead of ``Priority Mail.'' Priority Mail must always bear the marking ``Priority Mail'' or ``Priority.'' This marking is used to ensure that mail is placed in and processed through the Priority Mail network and to collect cost

[Page 37958]and revenue data through the Postal Service's statistical sampling systems. Deployment of the Priority Mail Processing Center (PMPC) network has affected overnight service standards for some ZIP Codes. While the vast majority of service standard changes have resulted in improved service, there are, as the commenter suggests, a small number of 5-digit ZIP Code areas that may experience two-day service instead of overnight. However, the Postal Service does not plan to waive the marking requirement for pieces mailed in such 5-digit ZIP Code areas.

3. First-Class Mail

Two commenters requested that the Prepaid Reply Mail proposal should not be implemented because of administrative complexity and costs to the mailer. For other reasons, the Governors did not approve Prepaid Reply Mail.

One commenter supported the provision allowing ``Presorted'' to be abbreviated ``PRSRT'' when used in the ``Presorted First-Class'' marking. Another commenter was concerned that it appeared the revised DMM M012.2.1a required single-piece First-Class Mail to bear a ``First- Class'' marking. The Postal Service has revised DMM M012 to make it clear that single-piece First-Class Mail is not required to bear a rate marking.

4. Periodicals

Two commenters suggested that for clarity, proposed DMM E230.3.0b and E230.4.0b concerning eligibility for 5-digit and 3-digit presort rates be revised to indicate that 5-digit and 3-digit packages of 6 or more pieces may be palletized under M045 to obtain the 5-digit and 3- digit presort rates. The Postal Service has adopted this suggestion.

Two commenters suggested that the forwarding rules table in DMM F010.5.2g should be clarified so it does not appear that use of ACS will always result in the return of the mailpiece. One of these commenters suggested that it would be clearer if the entire chart in this DMM section had been reproduced so that it was clear that footnote 1 stating ``Valid for all pieces, including Address Change Service (ACS) participating pieces'' also applied to pieces that bear no endorsement. When Periodicals pieces bear no endorsement, after 60 days or, if the piece is undeliverable, a separate address correction or reason for nondelivery is provided, the address correction fee is charged (the automated fee if ACS service is used), and the piece is disposed of by the Postal Service. The entire chart in DMM F010.5.2g is reproduced in this final rule to make it clear that this policy has not changed.

One commenter indicated that it appeared the Postal Service intends to revise current rules in DMM F010.6.1 to require that Periodicals mail with a nonincidental First-Class attachment be returned to the mailer. The Postal Service revisions to DMM F010.6.1 in both the proposed and this final rule revise only the rate of postage at which such pieces are returned from the single-piece Standard Mail (A) rate to the First-Class or Priority Mail rate as applicable for the weight of the piece. Postal Service policy for some years has provided that Periodicals pieces with nonincidental First-Class Mail attachments be returned. However, Periodicals pieces with incidental First-Class Mail attachments, as defined in DMM M070.5.0, are treated as dead mail unless endorsed ``Address Service Requested.'' To avoid confusion, in Part D of this final rule, the Postal Service has published DMM F010.6.1 in its entirety to show the treatment of incidental First- Class attachments as well as treatment of nonincidental First-Class attachments.

One commenter indicated that the current interpretation of ``mailing'' for Periodicals allows mailers to treat and report mail for different rate categories, including automation mail, carrier route mail, and other non-automation mail, as one ``mailing.'' This commenter asked if the proposed definition of a mailing in DMM M011.1.4 would require that a separate mailing statement be prepared for each rate category of Periodicals mail. The DMM currently does not allow preparation of automation, carrier route, and other non-automation mail in a single ``mailing.'' Separate presort and eligibility requirements are prescribed for each of these rate categories. However, each of these rate categories are permitted to be reported on a single postage statement for a single publication and edition. To clarify that the current practice continues to be permitted, a new section DMM M011.1.4d has been added concerning ``mailings'' of Periodicals.

5. Standard Mail (A)

Five commenters indicated their support for allowing pieces in an Enhanced Carrier Route rate mailing and/or in an automation rate mailing that have each separately met a 200-piece or 50-pound minimum quantity requirement to be counted toward the minimum quantity requirement for a Presorted Standard (\3/5\ and basic rate) mailing, provided that (1) the Enhanced Carrier Route rate mailing and/or the automation mailing and the Presorted Standard mailing are part of the same mailing job, and (2) the mailings are all reported on the same postage statement.

One commenter asked what DMM section E612.4.6 means. DMM E612.4.6 contains provisions that allow Standard Mail (A) matter weighing less than 16 ounces to pay Standard Mail (B) rates if those rates are lower than Standard Mail (A) rates and the matter and the mailing could qualify for the Standard Mail (B) rate except for weight. For example, suppose a mailer had flat-size printed matter pieces that met all of the qualifications for Bound Printed Matter except that the pieces each weighed 4 ounces and therefore did not meet the requirement of weighing at least one pound. In such an instance the mailer could presort the pieces as Standard Mail (A) flats and claim basic presorted Bound Printed Matter rates if those rates were less than the applicable Standard Mail (A) rates. The mailer could presort the pieces according to the Presorted Standard Mail (A) requirements to 5-digit, 3-digit, ADC, and mixed ADC, which are similar to the presort requirements for presorted Bound Printed Matter, and claim the local zone Bound Printed Matter rates provided the mailer marked the pieces ``Presorted'' or ``Presorted Standard'' and ``Bound Printed Matter'' and submitted documentation to substantiate that the pieces qualified for the local zone rate.

One commenter requested that the Postal Service not apply the residual shape surcharge to Enhanced Carrier Route rate merchandise samples prepared with detached labels. The Postal Rate Commission recommended and the Governors of the Postal Service approved a residual shape surcharge for Enhanced Carrier Route mail. Since these provisions are in the Domestic Mail Classification Schedule to take effect January 10, 1999, the Postal Service cannot unilaterally change these provisions. Therefore, merchandise samples at the Enhanced Carrier Route rates will be subject to the residual shape surcharge.

One commenter requested that the Postal Service revise the rule placed into effect under Classification Reform that allows mail whose size meets both the letter-size requirements and the automation flats requirements to be prepared as flats on pallets if a portion of the mailing qualifies for automation flats and if palletized mail at the Presorted Standard rates is limited to 10% of the total palletized mail. This rule further requires that mail unable to be palletized either due to density or because it exceeded the 10% limit be prepared as a separate letter-size mailing. This issue is not related to the

[Page 37959]implementation rules for the Docket No. R97-1 rate case and will not be revised as a part of this rulemaking process. However, this matter has been brought to the attention of the Presort Optimization working group of the Mailers Technical Advisory Committee.

One commenter indicated that on occasion he will have a mailing that is set up as Standard Mail (A) (i.e., bears Standard Mail (A) rate markings and pre-printed endorsements for Change Service Requested using ACS) and subsequently discover that a particular mailing list has fewer than 200 names. Such a mailing would not qualify for Standard Mail (A) rates, and would be subject to single-piece First-Class Mail rates, unless it could meet the revised volume requirements under DMM E620.1.2. This commenter indicated that he could cover the bulk rate indicias with First-Class stamps, but that the ACS participant code on the mailpieces would be that assigned for Standard Mail (A), not First- Class. This commenter accordingly asked if changes could be made to the Centralized Forwarding System (CFS) to handle this, and if not, asked how could it be mailed. The CFS system cannot be modified to handle such instances. It would be unlikely that a postal employee would be able to tell that such a mailpiece was modified from a Standard Mail (A) mailpiece if a stamp is covering the bulk rate indicia. Furthermore, if mailers added ``single-piece'' or ``single-piece First- Class'' markings to such mailpieces it would be difficult and time consuming to have carriers search all undeliverable mailpieces for such markings in order to forward them to CFS sites, and then for CFS employees to notice the markings and respond accordingly. Two options have been added to the DMM for payment at First-Class or Priority Mail rates for such pieces and for pieces that for other reasons are subject to the appropriate First-Class Mail or Priority Mail rates. Mailers who desire to receive First-Class Mail or Priority Mail service on mailpieces subject to those rates must re-envelope or otherwise prepare the mailpieces so that they bear only the proper First-Class Mail or Priority Mail rate markings, ancillary service endorsements, Address Change Service (ACS) codes, etc. Metered pieces weighing over 13 ounces and less than 16 ounces must always be prepared under this method. Except for metered pieces weighing over 13 ounces and less than 16 ounces, mailers who do not desire to receive First-Class Mail or Priority Mail service on such pieces may submit them ``as is'' (i.e., bearing the Standard Mail (A) markings and endorsements). No additional markings or postage are to be added to these pieces. First-Class Mail or Priority Mail postage must be paid for these pieces using the appropriate First-Class or Priority Mail postage statement. Except for metered pieces weighing over 13 ounces and less than 16 ounces, mail bearing metered or precanceled stamp postage must pay the difference between the postage affixed and the First-Class Mail or Priority Mail rates by means of an advance deposit account or by affixing a meter strip for the appropriate amount to the First-Class postage statement. If the pieces weigh 13 ounces or less, mailers must use special line items on the new First-Class postage statements under the heading ``From Standard Mail (A)'' to record the pieces mailed. This option may be used for fewer than 200 pieces of permit imprint mail only if the pieces were part of a larger mailing job and are submitted for acceptance along with the mail and a Standard Mail (A) postage statement for the other pieces in the same mailing job.

One commenter was concerned that the revised definition of a mailing in DMM M011.1.4d(6) seemed to preclude his company's current practice of co-mailing Nonprofit and Regular rate mail. This section has been renumbered as M011.1.4e(6) in this final rule. This section begins with the phrase ``Except as provided by standard,'' which means that other rules in the DMM may permit practices that entail combining or copalletizing such pieces. For clarity the following sentence was added to this section in the final rule. ``See M041.6.0, M045.5.0, M045.7.0, and M200.6.0 for copalletized, combined, or mixed-rate level mailings.'' Accordingly, if a mailer is currently authorized to combine or copalletize Nonprofit and Regular rate mail, he or she may continue to do so after the new rates and mailing definitions are effective.

Two commenters supported the change in the Standard Mail (A) rate marking for Regular rate mailings from ``Bulk Rate'' to ``Presorted Standard.'' Two commenters indicated that the ``Presorted Standard'' marking should be optional. These two commenters indicated that they would prefer to use the new marking on their advertising mail but do not wish to use it on fulfillment parcels because it will be costly to revise the current cartons. One of these commenters indicated that if the marking is not made optional, there should be a transition period of at least two years for mailers to convert to the new marking. For simplicity in its statistical sampling systems, the Postal Service will not allow both markings to be used indefinitely. However, mailers will be given two years to convert their regular rate Presorted, regular rate automation, and regular rate Enhanced Carrier Route mailings to the new ``Presorted Standard'' marking or its authorized abbreviation ``PRSRT STD.'' Until January 10, 2001, either the ``Bulk Rate'' or the ``Presorted Standard'' marking or authorized abbreviation will be accepted.

Five commenters requested that the proposed ``RSS'' marking for pieces subject to the residual shape surcharge be eliminated. Four of these commenters indicated the marking uses too much space on a mailpiece, one indicated that it detracts visually from the mailpiece, two did not see the purpose of it, and one indicated it would require additional labor for the shipper. One commenter was a mailer association, who indicated it would be impossible for some of its mailers to predict which pieces would need the marking. One such mailer has pieces that could be considered either flat-size or a machinable parcel and decides which way to prepare the mail based on the density of orders received. Only machinable parcel mailings would need to bear the marking. Another such mailer indicated they cannot predict the final size of the product shipped ahead of time. For example, multiple pieces ordered could be sent as one or more pieces each having a different shape. Based on the comments received, the Postal Service has determined to not require the use of an ``RSS'' marking.

6. Standard Mail (B)

a. General

There were 10 commenters among the 32 submitting comments to the Postal Service whose statements concerned Standard Mail B topics. Of the 10, seven were private firms, including three parcel consolidators, and three were parcel shipper associations. Their comments concentrated mainly on the following subject areas: barcoded discount, destination mailings at the sectional center and delivery unit levels; new bulk mail center presort (BMC Presort) and origin bulk mail center presort (OBMC Presort) discounts; 10% limitation on oversized parcels; criteria for machinability and nonmachinability; combined mailings of Standard Mail (A) and Standard Mail (B) parcels; and vehicle unloading requirements.

In addition to receiving comments as part of the formal rulemaking process, the Postal Service has had extensive ongoing exchanges of viewpoints with representatives of the parcel shipping industry. This cooperative effort has led

[Page 37960]to the development of revised standards that the Postal Service believes strikes a better balance between the interests of mailers and their concerns about qualifying for the most advantageous postage rate discounts at the lowest possible mailing costs and the needs of the Postal Service for providing high-quality service, containing costs, and optimizing operational efficiency. Significant revisions have been made in the proposed standards, especially as they relate to mail preparation requirements for the new destination sectional center and delivery unit discount rates.

Several other issues unrelated to the R97-1 rate case emerged and are not addressed in the final standard. These issues concern extension of the destination bulk mail center rates (DBMC) to Alaska, Hawaii, and Puerto Rico, new criteria for parcel machinability or nonmachinability, and updated definitions of ``perishable'' and ``nonperishable'' parcels that take into account improved packaging and containerization. They will be reviewed separately by the Postal Service in the future and any changes to existing standards will be handled through separate rulemaking procedures. b. Parcel Barcodes

Two commenters indicated that they would support a barcode certification process, and that this process should be published at least 60 days prior to rate availability. In lieu of a barcode certification process, the Postal Service is looking at methods to verify the quality of barcodes during the verification process using commercially available barcode verification equipment.

One commenter indicated that the barcoded discount should be available for pieces processed at any postal facility that is automated to use the ZIP Code barcode for sorting, including ASFs that now or in the future have barcode scanning capabilities. The Postal Service has determined that the Phoenix, Arizona, ASF has barcode scanning capabilities. Accordingly, the Postal Service has revised the standards for eligibility for the barcoded discount for Parcel Post mail to include machinable parcels eligible for the DBMC rate that are entered at the Phoenix ASF.

One commenter raised a question about the need for having human- readable characters representing the 5-digit barcode appear on a mailpiece's address label since it duplicates information already provided in the address and takes up limited label space. Having the human-readable ZIP Code appear as part of the barcode printing process immediately below the barcode is useful in determining that the correct barcode was applied to the mailpiece, particularly if the barcode is applied in a process separate from applying the address. Since generally the ZIP Code in the address block is used in the process of applying an address block barcode, the Postal Service has decided to revise the standard. Therefore, the numeric equivalent of the barcode will not be required to appear immediately below the barcode when the barcode is printed as part of the address block (on the same label as the mailing address and in close proximity to that address). However, if the barcode label is produced separately from the address label, the human readable ZIP Code information must be included. This decision will give mailers some flexibility in how they prepare their address labels while still meeting postal concerns about having barcodes that are correct for the addresses on the parcels.

Another commenter raised several questions about the technical specifications included in the proposed rule. Clarification was requested for the average measured narrow element (bar or space) width. The average measured narrow element is the barcode X-dimension that typifies the arithmetic mean of the barcode narrow elements. A minimum clear or quiet zone equal to 10 times the average measured narrow element (bar or space) width must be maintained on either side of a barcode as defined in ANSI X3.182-1990.

A second question was whether mailers and their suppliers would have to start measuring barcode spaces and bar widths more scientifically to determine what dimension is appropriate for the clear space surrounding parcel barcodes on either side. The Postal Service is confident that mailers will be able to determine the average narrow element widths and barcode quality by using commercially available barcode verification equipment.

A related question had to do with how the Postal Service would administer this specification. The Postal Service is looking at methods to verify the quality of barcodes during verification by using commercially available barcode verifiers to measure barcode parameters.

Another question concerned the basis for requiring a minimum clear zone equal to 10 times the average measured narrow element (bar or space) width on either side of the barcode. The advantage to the Postal Service for using a minimum clear zone of 10 times the average narrow element width is to ensure the reliable reading of barcodes on currently deployed postal equipment. The quiet zone specification for the barcode symbologies in question is defined in the AIM/USS symbol specification. Additionally, manufacturers of barcode readers advise that a minimum clear zone of 10 times the average narrow element width enhances barcode readability.

This commenter also asked why the \1/8\-inch dimension could not be used. The reason is that \1/8\ inch is less than 10 times the average narrow element width for the minimally defined narrow element width of 13 mils, and, therefore, not in compliance with the AIM/USS symbology specification and the ANSI print code quality guidelines (ANSI X3.182- 1990). Another question from this same commenter concerned whether the proposed measurement would allow greater room for shifting of the piece under the barcode reader on the parcel sorter machines. The proposed clear zone specification is the minimum acceptable standard as provided in the ANSI print code quality guidelines of ANSI X3.182-1990. c. Oversized Parcels

The Postal Service had included in the proposed rule provisions for mailing oversized parcels (parcels exceeding 108 inches but not more than 130 inches in combined length and girth) at the rates equal to a 70-pound parcel for the applicable zone provided they constituted no more than 10% of the total pieces in a mailing. Two commenters questioned the 10% limit. The PRC's recommended decision included zoned rates for such oversized pieces that are higher than the 70-pound rates. The PRC did not recommend a 10% limit on such pieces but recommended higher rates. Since the Governors of the Postal Service approved this provision of the PRC's recommended decision, the final DMM standards do not include a 10% limit on such oversized pieces. d. DSCF Rate Mailings

Nine of the 10 Standard Mail (B) commenters had comments about the proposed standards for destination sectional center facility (DSCF) and delivery unit (DDU) rate mailings. Three parcel consolidation shipping companies submitted comments favoring more flexible, less restrictive requirements. In general, the comments favored lower minimum volumes for rate eligibility than those proposed by the Postal Service, optional entry points, and greater flexibility in the preparation requirements so mailers could choose to

[Page 37961]prepare pieces directly on pallets, in pallet boxes on pallets, or in sacks.

One commenter proposed that the Postal Service eliminate the use of sacks for the DSCF rate. This commenter believed that eliminating sacks as an option would avoid additional handlings of sacks at postal facilities. This commenter also indicated that very few parcel mailers would be able to place 10 parcels in a single sack and that this minimum could effectively eliminate sacked mail. Five other commenters also thought the proposed sack minimum of 10 pieces was too high and said it would discourage DSCF mailings. While several commenters proposed adopting minimums that would utilize sack volume and weight factors, these factors are not included as part of the costing determinations for the rate. The critical cost determinant for the rate is the number of pieces per handling. In the final DMM standards the minimum number of pieces per sack has been reduced from 10 to seven. The decision to reduce the minimum to seven pieces is being made with the expectation that an average of 10 pieces per sack will be achieved to support the worksharing discount. In addition, the final DMM standards allow for one overflow sack per 5-digit destination that may contain fewer than seven pieces.

Six commenters sought to eliminate the provision prohibiting overflow pallets. One commenter said that since overflow trays of letters are permitted, overflow pallets of parcels also should be allowed. This argument is not persuasive because the cost of handling a pallet is much greater than the cost of handling a tray. It costs as much to handle a less-than-full pallet as it does a full one. However, the standard has been modified in this final rule to accommodate overflow from pallets. Provisions have been added to the DMM standards that allow overflow from 5-digit pallets to be placed in 5-digit sacks. Overflow sacks will have no minimum piece requirement and the pieces in overflow sacks will be eligible for the DSCF rates. The Postal Service also has added provisions that will allow a mailer to present to a DSCF overflow 5-digit pallets (that by definition do not meet the pallet minimums for the DSCF rate) provided the DBMC rates are paid for the pieces on such overflow pallets.

Five commenters expressed concern over the 5-digit pallet minimums specified in the proposed rule. In setting the minimum specified in the proposed rule, the Postal Service was guided by per-piece handling costs and concerns that a reduction in the average number of pieces per handling resulting in higher costs, would adversely affect the viability of the rate. Small volume pallets would increase handling costs and also would take more cube space on transportation. While suggesting differing alternatives to the Postal Service proposal, these five commenters were in agreement that the requirement of a minimum of 50 pieces and 250 pounds per pallet was too high. To resolve their concerns and those of the Postal Service about piece handling and transportation costs, the Postal Service has added a new option for preparing 5-digit pallets to qualify for the DSCF rate. Under the new option, pallets may be prepared that contain as few as 35 pieces and 200 pounds of mail provided the total number of pallets prepared for the DSCF rate in the mailing average at least 50 pieces per pallet. Under this new option, no other pallet preparation or sack option may be used within a single mailing. Mailers will be required to submit detailed documentation and place sequential identification numbers on qualifying pallets of DSCF rate mail. The documentation must list each pallet in sequential order by pallet identification number. The listing must show for each pallet: the pallet identification number, the 5- digit ZIP Code of the pallet, the total weight of pieces on the pallet, the total number of pieces on the pallet, and the cumulative total of pieces (i.e., the number equal to the number of pieces for that pallet plus the sum of the pieces on all pallets listed above it). This documentation must not include pieces prepared in overflow sacks at the DSCF rate, pieces prepared on overflow pallets at the DBMC rates, or pieces claimed at any other rate in the mailing.

The requirement for BMC entry of DSCF rate mailings prepared on pallets to ZIP Codes listed in Exhibit E652.5.0 has been retained. The BMC provides direct transportation to the 5-digit facilities represented by the listed 5-digit ZIP Codes, thereby allowing certain quantities of mail to bypass the affected SCFs. The Postal Service believes that there is a need for palletized mail for the 5-digit ZIP Codes listed on Exhibit E652.5.0 to continue to bypass the affected SCFs because of the potentially limited capabilities of those SCF facilities. Three commenters said that they would like to have an option to enter DSCF rate mailings either at a BMC or an SCF. To support this position, one commenter contended that the same dock procedures for handling 5-digit containers are followed at the SCF as are followed at the BMC and that the distance from the SCF to a 5-digit facility would be less than from the BMC. The Postal Service disagrees. BMCs do not currently sort sacks to 5-digits or cross-dock 5-digit sacks. They are shipped to the SCF in 3-digit containers and are re- worked to 5-digits at the SCF, thus adding handlings. Further, granting an option on a blanket basis is likely to worsen the problems experienced by some sectional center facilities in accommodating palletized mailings due to limited dock space, restricted vehicle maneuvering area, and other constraints. Recognizing that requiring BMC entry may present certain difficulties for mailers, the Postal Service has amended the proposed standard to allow exceptions on a case by case basis. A mailer may submit a written request to the appropriate Area Manager, Operation Support asking for an exception to Exhibit E652.5.0. The exception request must be submitted at least 15 days prior to the mailing and may be granted only for a limited time.

The proposed standard specified that palletized DSCF rate mailings must be entered at the appropriate BMC listed in Exhibit E652.5.0. and sacked mailings must be entered at an SCF. Two commenters objected to these requirements. Since the requirement is consistent with the costing and worksharing assumptions that underlie the rate, it has been left unchanged. The rate assumes no handling of sacks at BMCs. Some mailers who were claiming the DBMC rate will benefit because now they can get a DSCF rate when dropping at a BMC.

A parcel consolidator also stated that the DSCF rate should be allowed for mail prepared on pallets for 5-digit facilities that are not capable of handling pallets according to the Drop Shipment Product. The requirements as written allow the Postal Service to recoup the cost savings passed on to the mailer in the lower DSCF rate. These cost savings will not be realized if the SCF facility receives a 5-digit pallet for a 5-digit facility that cannot handle pallets. The SCF would need to manually unload the parcels off of the mailer-prepared 5-digit pallet and place them into another type of 5-digit container before the SCF could transport the parcels to that 5-digit facility. Accordingly, the DMM standards will not be revised to allow the DSCF rate for mail prepared on pallets for 5-digit facilities that are not capable of handling pallets.

Six commenters requested reconsideration of the prohibition against use of pallet boxes on pallets. After further evaluation, the Postal Service decided to allow the use of

[Page 37962]mailer-supplied pallet boxes that measure up to a maximum of 60 inches in height, except in the case of facilities unable to handle pallets. There is no minimum height requirement for the pallet box as long as the appropriate piece and pound minimum requirement or the 36-inches of mail minimum requirement are met for each pallet. One commenter also asked to be allowed to double-stack pallet boxes on pallets. The proposed standard has been revised to permit double stacking. Just as pallets are not allowed at the DSCF rate for those 5-digit destinations listed in the Drop Shipment Product as unable to handle pallets, pallet boxes on pallets will not be allowed for those same offices. e. DDU Rate Mailings

The proposed standard did not allow the use of pallet boxes for DDU rate mailings. Four commenters felt that pallet boxes should be allowed. The Postal Service agrees that they may be used and that mailers will need to supply them. If a mailer chooses to do so, they may be double-stacked. As with DDU mailings that are bedloaded or sacked or prepared as parcels placed directly on pallets, the vehicle driver is required to unload the pallet boxes and place them at a designated location at the delivery unit. If they are double-stacked, the driver must remove them from the vehicle, unstack them, and then remove any strapping material. At DDU facilities listed in the Drop Shipment Product as being unable to handle pallets, mail that has been placed directly on pallets or in pallet boxes on pallets must be off- loaded by the vehicle driver from the pallet or pallet box into other containers specified by the delivery unit.

Two commenters stated that Standard Mail (A) pieces should be counted towards the minimum volume required for the DDU rate. However, eligibility for the DDU rate category, as with each of the other destination rate categories for Parcel Post, has a fixed minimum volume requirement of 50 pieces of Parcel Post mail. This requirement is in the Domestic Mail Classification Schedule (DMCS) and cannot be unilaterally modified by the Postal Service.

One commenter asked whether a separation would be required beyond a 5-digit destination to be eligible for the DDU rate. The Postal Service requires a 5-digit separation only. However, if more than one 5-digit ZIP Code is served by a delivery unit, the mailer must separate the pieces by 5-digit ZIP Code when entered at the DDU.

Another commenter wanted to bedload parcels entered at DDUs. Mailings may be bedloaded, placed directly on pallets, or placed in pallet boxes on pallets, if the facility can handle them. Since the DDU rate is based on worksharing factors that do not include unloading by Postal Service employees, the requirement for vehicle drivers to unload all DDU rate mailings is retained. f. OBMC Presort and BMC Presort Rate Mailings

Three commenters questioned why it is required that machinable parcels be placed in pallet boxes on pallets and why they could not be placed directly on pallets. In addition, three commenters wanted to use pallet boxes for both machinable parcels and nonmachinable parcels. The proposed standard has been left unchanged. The cost savings underlying the discount for machinable parcels assumes that machinable parcels are placed in pallet boxes that can be dumped by tipping the box onto the parcel sorting equipment instead of having to manually unload individual pieces from a pallet. A pallet box is placed at an incoming door of a BMC where there is a dumping operation. Nonmachinable parcels must be placed directly on pallets because they are worked at separate locations within a BMC. They are not dumped onto a parcel sorting machine since they are not machinable. These nonmachinable pieces are sorted manually. It is safer and more efficient to manually remove such pieces from pallets when they are placed directly on the pallet rather than in a pallet box.

One commenter indicated that the proposed documentation for the BMC Presort and OBMC Presort discounts that requires a listing of the number of pieces on each individual BMC pallet was too onerous. The commenter suggested that a listing by BMC destination should satisfy the needs of the Postal Service. The Postal Service has reconsidered its documentation needs for verification purposes. Metered mail is required to bear the exact postage on each piece and, therefore documentation is not needed to verify postage. Permit imprint mail must be prepared so that all the mail in a single container is of the same weight and rate of postage unless the mail is prepared under a manifest mailing system or another system of documentation or records that permits the Postal Service to adequately verify postage. The manifest system will require mailers to list pieces for these rates by BMC destination. Accordingly, the Postal Service does not believe that any additional documentation will be necessary for mail entered at the BMC Presort or OBMC Presort discounts and has removed the documentation requirement from the DMM standards in this final rule.

One commenter requested that the proposed standards for BMC Presort and OBMC Presort discounts be changed to allow overflow containers if the container was at least 50% full. The rate is based on piece handling efficiencies that are not realized when the containers do not meet the required minimum volumes. Therefore the prohibition on overflow containers has been retained. g. Bedloading

A requirement was included in proposed standard DMM E652.2.1 that perishable and nonperishable items in a bedloaded DBMC or bedloaded DDU rate mailing would have to be separated. Fruit shippers in particular expressed opposition to this on grounds that the current method of preparing mailings without separation was satisfactory and that the new requirement would only add to their mail preparation costs. The Postal Service has removed the requirement from the final standard after further consideration of the need for separation.

Two commenters also requested to be allowed to bedload DSCF rate mailings as is allowed for DBMC and DDU rate mailings. The original provision limiting bedloading to DBMC rate mail entered at BMCs and ASFs and to DDU rate mail entered at delivery units has been retained in the final standard. This is because the DSCF rate is based upon receiving 5-digit containers of parcels that can be cross-docked to the 5-digit delivery unit. h. Destinating Facility Appointments and Vehicle Unloading

The standard requiring the mailers' drivers to unload destination delivery unit mailings was the principal area drawing opposing comments. Six commenters objected to the driver unloading requirement for the DDU rate. A parcel shippers association and a company commenter took the position that unloading by drivers should be limited to bedloaded shipments only. The same two commenters said that postal employees should unload pallets of Standard Mail (B) parcels just as they do [Standard Mail (A)] flat mail. The current standards for the Standard Mail (A) DDU rates do however, require that vehicle drivers must unload DDU rate mailings. The comments of the parcel shippers association included a suggestion that assistance by postal

[Page 37963]employees should be provided whenever possible. One commenter questioned the unloading requirement on the basis that the Postal Service was unlikely to make forklifts available to drivers and another raised the possibility that having drivers unload mailings might violate a postal labor agreement.

Since the worksharing DDU rate assumes that postal employees will not unload shipments from vehicles, it was necessary for the Postal Service to retain the proposed standard without amendment. However, to facilitate the scheduling of drop shipments to delivery units, a provision has been made to allow standing appointments if shipment frequency is weekly or more often. Another change was made with respect to the proposed standard covering deposit conditions (E652.3.7) that stated mailings arriving more than 1 hour late for scheduled appointments at delivery units may be refused. This 1-hour allowance was incorrect. The proposed standard should have indicated 20 minutes to be consistent with current deposit conditions at delivery units for Standard Mail (A) mailings. Accordingly, the standard has been modified to specify 20 minutes.

Several comments were received about destination entry shipments that generally requested an easing of existing provisions. For example, one commenter wanted to see the requirement for the time allowed for driver unloading of destination entry shipments to BMCs, ASFs, and SCFs increased from 8 to 12 hours. Another company submitting comments disagreed with the existing 2-hour grace period allowed for scheduled appointments at BMCs, requesting that the time allowance be doubled or even expanded to 8 hours during the peak fall mailing season. Such liberalization of existing standards would adversely impact the window needed by the Postal Service to handle mailings and will not be adopted.

Another commenter wanted the Postal Service to allow a drop and pick option for palletized loads at BMCs. Again, the impact on postal operations of such a change would be negative, as, for example, postal employees would then have to shuttle trailers back and forth from staging areas to facility docks and back. Accordingly, this comment will not be adopted.

Two commenters maintained that the Postal Service should reimburse mailers for waiting time charges, demurrage, or other detention costs when the cause is clearly attributable to the Postal Service or, alternatively, that there should be an expanded appeal process to the national Headquarters level. Under existing procedures two appeal levels, local facility manager and district manager, customer service, are already available to mailers. While the Postal Service is willing to consider possible future changes, no changes are made at this time. i. Markings

Two commenters supported the proposed use of a single drop shipment marking for DBMC, DSCF, and DDU Parcel Post rate mail. One commenter disagreed with the requirement for any drop shipment markings. Drop shipment markings are needed to develop meaningful statistical samples for the in-office costing system. Costs developed from this system are used in rate cases. Although individual rate markings for each of the drop shipment rates would result in more accurate costing, the Postal Service has determined, based on mailer input, to require only a single drop shipment marking for use on DBMC, DSCF and DDU Parcel Post rate mail. An exception will be that the current ``DBMC Parcel Post'' or ``DBMC PP'' marking will continue to be permitted on DBMC rate mail instead of the new ``Parcel Post'' and ``Drop Ship'' markings until January 10, 2000.

One commenter indicated that the ``Presorted Standard'' marking should be extended to Standard Mail (B). This commenter stated that many mailers now use the ``Bulk Rate'' indicia for both Standard Mail (A) and bulk Bound Printed Matter mailings by simply adding the ``Bound Printed Matter'' marking directly to the left of the ``Bulk Rate'' indicia. The Postal Service has amended this final rule to allow use of the ``Presorted Standard'' marking in lieu of the ``Presorted'' marking for presorted Bound Printed Matter.

One commenter asked what will happen to an individual customer's mail if it does not bear the ``Parcel Post'' marking. If this mail is entered at a retail window, the retail clerk will add the marking to the mailpiece. If this mail is entered at an acceptance unit, the appropriate verification and acceptance processes will be performed to ensure that the mail is entered with proper markings. Since matter weighing over 16 ounces is not permitted to be placed in collection boxes, there is little likelihood that mail without the ``Parcel Post'' marking will be entered in the mailstream. j. Combined Parcels

One commenter stated that Standard Mail (A) parcels should be permitted to be combined with Standard Mail (B) parcels prepared for DDU entry because the preparation requirements are identical. The Postal Service disagrees with this statement. To qualify for Standard Mail (A) DDU rates, pieces must be sorted to carrier route. Except for merchandise samples prepared with detached address labels, the maximum size of Enhanced Carrier Route mail is 11\3/4\ inches high by 14 inches long, by \3/4\ of an inch thick (which is flat-sized mail). Because of the maximum size dimensions and the requirement to walk-sequence or LOT-sequence Enhanced Carrier Route mail, the only parcels that can qualify for Enhanced Carrier Route rates are merchandise samples prepared with detached address labels. The separate preparation requirements for merchandise samples with detached address labels prepared to qualify for the Enhanced Carrier Route rates does not lend itself to combined preparation with Standard Mail (B) parcels. Accordingly, Standard Mail (A) and Standard Mail (B) parcels will not be permitted to be combined when qualifying for their separate DDU rates.

One commenter requested that the requirement for minimum volumes to be met by Standard Mail (B) alone should be removed since the incentive for combining classes is to use the combined volume to meet the pallet and sacking minimums. Meeting the pallet and sack minimums based on Standard Mail (B) alone is required only when the Standard Mail (B) preparation method requires a minimum number of pieces (e.g., it is not required when the DSCF minimum of 36 inches of mail on a 5-digit pallet is used). The Postal Service wants to ensure that it is moving a substantial volume of mail on a single 5-digit pallet. If mailers fill a pallet with 36 inches of predominately Standard Mail (A) mail, it would take a large number of Standard Mail (A) pieces to do so. By the same token, placing predominately Standard Mail (A) parcels on a pallet based on a 50-piece minimum criteria could result in a very small pallet. Therefore the Postal Service is retaining the rules as proposed.

7. Special Services

a. Business Reply Mail

Eleven comments were received concerning the proposal to increase the minimum thickness of BRM pieces from 0.007 inch to 0.009 inch thick for those pieces that bear a barcode and measure greater than 4\1/4\ by 6 inches. Nine commenters stated that 0.009 inch thick paper stock is more expensive than 0.007 inch thick paper stock. Six

[Page 37964]commenters indicated that the increased weight of the stock would increase shipping and trucking costs of the paper stock and increase pound-rate postage on the outgoing mailpiece (publication) that the BRM piece is inserted into. Four commenters suggested that mailers will cease using the cards and use some other medium than the mail to increase their circulation and market their products. One commenter stated that this change is not directly related to rate and fee increases in Docket No. R97-1. One commenter suggested the Postal Service develop a new maximum size limit that could be used with 0.007 inch thick paper stock, such as 5 inches by 7 inches. Four commenters stated that the Postal Service should study the impact on mailers and the Postal Service before adopting this requirement. Three commenters indicated that no compelling rationale for this change was provided in the proposal, such as the existence of machinability problems. Nine commenters indicated that there is currently only a limited supply of 0.009 inch card stock. Two commenters indicated that mailers would need a grace period before this requirement went into effect so that their printers could develop new paper supplies. One commenter indicated that Postal Service testimony in R97-1 indicated that only a small proportion of BRM is processed through BRMAS or through barcode sorters and that the additional expense of thicker paper stock is not warranted if the pieces are not likely to be handled in an automated fashion.

A low incidence of processing mail on barcode sorters is true only for the accounting activities related to BRM. However, the lower First- Class postage rate for QBRM is based on lower costs due to processing pieces on barcode sorters in non-accounting operations (i. e. in processing the mail from the collection box to the facility where the accounting procedures are performed).

The Postal Service has adopted the minimum thickness requirement of 0.009 inch for pieces measuring over 4\1/4\ in height and/or 6 inches in length as proposed. This requirement is based on engineering studies. These studies have shown that mailable pieces not larger than 4\1/4\ by 6 inches with a minimum thickness of 0.007 inch and meeting specified basis weight requirements can be successfully processed on automation equipment, while pieces larger than 4\1/4\ by 6 inches generally must be 0.009 inch thick to be successfully processed on automation equipment. Adoption of this rule will ensure that business reply pieces entered at the automation QBRM rate or that otherwise bear a barcode will be sufficiently sturdy to be successfully transported through postal automation equipment and will minimize the potential for damaged pieces. The Postal Service implemented this minimum thickness requirement for automation rate mailings on February 24, 1991, based on these studies and on mailer complaints concerning damaged pieces. Although at that time these minimum thickness requirements were not applied to BRMAS or other barcoded BRM pieces, the Postal Service believed then and believes today that the 0.009 inch minimum thickness requirement for pieces measuring over 4\1/4\ by 6 inches is necessary for efficient processing on automation equipment. In view of the discounted First-Class postage rate applied to QBRM postage that is based primarily on the savings for automated processing, the Postal Service feels it is appropriate to apply the same standards to this mail as it does to other mail entered at automation rates. The Postal Service understands that mailers may need time to deplete existing stock of BRM mailpieces and to develop suppliers of thicker paper stock. Therefore, the effective date of the 0.009 inch minimum thickness requirement for barcoded BRM pieces measuring over 4\1/4\ by 6 inches will be January 10, 2001. This gives mailers 2-\1/2\ years notice to comply with this change.

Only one comment was received regarding barcode placement. This commenter indicated that the proposed change to DMM S922.5.1 was confusing. This commenter assumed that the Postal Service was not seeking to further restrict placement of barcodes on letter-size BRM and asked why the one-year grace period for compliance was needed. The proposed change was to make the placement of lower right barcodes for BRM comply with C840. Currently, pieces of BRM prebarcode in the lower right corner may: (1) have a barcode clear zone with a left boundary that is 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required in C840); (2) have a lower right barcode for which the leftmost bar is located between 3\1/4\ and 4 inches from the right edge of the piece (not between 3\1/2\ and 4\1/4\ inches as required under C840); (3) have a lower right barcode window, that has a left boundary measuring 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required under C840). The final standards in DMM S922.5.1 have been revised to clarify this matter. Mailers will be given until January 10, 2001, to use existing stocks of such prebarcoded BRM envelopes and cards and to procure new stock that meets the DMM C840 requirements.

One comment was received questioning why proposed S922.6.8c(4) prohibits the use of business reply labels on letter-size envelopes with a height more than 4\1/2\ inches. This is not a change. The same standard appears today in S922.6.10c(4). This standard will be maintained in order to assure the readability of the address on the letter-size piece. If labels were permitted on letter-size pieces up to the maximum height of 6\1/8\ inches, the address on the label would not be placed within the optical character read (OCR) area of the mailpiece.

One comment was received regarding the format error notification process described in proposed DMM S922.5.3. The commenter stated that although mailers are willing to correct errors immediately, they need a grace period in which pieces already distributed will be returned. The cited DMM section only requires that all future BRM pieces distributed by any means must meet the BRM format standards. This commenter also indicated that the requirement for mailers who have had their BRM permit revoked for repeatedly distributing BRM mail that does not meet the format requirements to submit 2 samples of each BRM format for approval for a two-year period after completing a new BRM application is overly punitive. The commenter stated publishers receive inserts too close to printing dates to allow time for the Postal Service to review the format. The commenter should note that this provision is not a change. The same standard appears today in S922.5.7 and has been in place for several years. The Postal Service feels that no change in policy is warranted at this time. This provision only applies to permit holders whose permit was previously revoked for repeated format violations and should not affect the vast majority of mailers. b. Insurance

One commenter requested clarification of DMM S913.12b. He indicated it is not clear what level of service would be provided to an item mailed under this DMM section. This section in essence states that matter mailed at First-Class Mail or Priority Mail rates may be insured only if it consists of matter that could also be mailed at Standard Mail rates (that is, it is not any of the types of items required to be mailed at First-Class rates under DMM E110). The level of service provided for these items will be First-Class or Priority Mail service according to the weight of the item and the rate of postage paid.

[Page 37965]c. Return Receipt Service

Three commenters had concerns over the Postal Service's proposal to modify DMM D042.1.7a and b. The proposed revisions stipulated that organizations receiving large volumes of pieces bearing return receipts would only need to sign a manifest listing all of the accountable mail before the mail was delivered to the organization. The current DMM rules stipulate that the recipient sign the delivery receipt and the return receipt and hand the receipts over to the Postal Service before the mailpieces can be opened, or given to the recipient. These commenters were concerned that allowing customers to complete return receipts without Postal Service controls is inappropriate and does not guarantee the customer that the return receipt he or she has paid for will be returned or will be completed properly. The Postal Service proposed this revision to reflect the operational conditions in plants that employ automated delivery receipt systems for processing accountable mail. However, based on the mailer comments received, the Postal Service determined not to revise DMM D042.1.7a and b. The Postal Service will work with its customers that receive large volumes of return receipts to ensure that our customers get the recipient's signature, date of delivery, and address, if different, under the standards in the current DMM. e. Requests for Use of Various Special Services With Standard Mail (A)

Two commenters recommended that DMM E612.4.10 be revised to allow COD, insurance, and registry service with Presorted Standard Mail (A). Another commenter indicated that certified, COD, insurance, registered, return receipt, return receipt for merchandise, special handling, and delivery confirmation services should be available for Standard Mail (A) since these services are available today for merchandise and providing these services would generate revenue. DMM E612.4.10 contains the information in current DMM E612.4.1. This section states that bulk rate Standard Mail (A) may not use certified, collect on delivery, insurance, registry, return receipt for merchandise, and special handling services. The proposed DMM language simply moved this information into a separate section so that it is easier to find. Although a few of the above services were previously available for Standard Mail (A) matter mailed at the single-piece rates, the elimination of the single-piece Standard Mail (A) rates now excludes any Standard Mail (A) from receiving these services. Offering these services with Standard Mail (A) would in many instances require a classification case to be filedwith the PRC. Therefore, such changes will not be implemented with these R97-1 implementation rules. However, the Postal Service may consider offering some of these services with Standard Mail (A) at a future date.

D. Summary of Domestic Mail Manual (DMM) Changes

The following are changes organized by DMM module. They are intended as an overview only and should not be viewed by readers as defining every revision.

A Addressing

A060.5.3 is amended to eliminate the option to pay postage for excess or undeliverable detached address labels (DALs) or items being returned at the single-piece Standard Mail (A) rates. Postage for excess or undeliverable DALs or items being returned is computed at the applicable single-piece rate (First-Class Mail, Priority Mail, or Standard Mail (B)) for the combined weight of the DAL and the accompanying item, regardless of whether both are being returned.

C Characteristics and Content

References to single-piece Standard Mail (A) are deleted throughout. C050 is revised to add ``Nonmachinable'' to the title of 5.0 and 6.0 (Irregular and Outside Parcels). C100.4.0 is revised to include keys and identification devices as items that may be considered nonstandard mail. C600.1.2 is amended to allow Parcel Post mailings to include pieces measuring over 108 inches, but not over 130 inches, in combined length and girth, if the oversized Parcel Post rate is paid. C600.1.2 also is amended to require Parcel Post pieces that weigh less than 15 pounds but measure more than 84 inches in combined length and girth to pay a rate equal to that of a 15-pound parcel for the zone to which the parcel is addressed. C600.2 is amended to delete the nonstandard surcharge criteria that formerly applied to single-piece Standard Mail (A). C810.2 is amended to provide new maximum weights for automation ``heavy'' letters. C820.2 is amended to increase the maximum weight limit for First-Class automation rate flats to 13 ounces. C840.8 is amended to add a stipulation for ZIP+4 barcodes for QBRM and other barcoded BRM. A new C850 is added to provide standards for barcodes on parcels.

D Deposit, Collection, and Delivery

D010.1.1 is amended to delete the term ``single-piece.'' D010.1.2 is amended to exclude Parcel Post pieces mailed at the DDU and DSCF rates (as well as mail at DBMC rates), or claiming the OBMC Presort discount, from obtaining pickup service. D600.2 is amended to remove the sentence that allowed single-piece Standard Mail (A) bearing adhesive stamps to be placed in collection boxes.

E Eligibility

E060.5 is amended to reflect the new 13-ounce weight limit for First-Class Mail. E060.12 is amended to remove single-piece Standard Mail (A) as a permissible rate for the return of items under penalty merchandise return service. E110.4 is revised to delete references to Presorted Priority Mail. E120 is revised to remove references to Presorted Priority Mail, to add information on rates and fees applicable to keys and identification devices, and to make minor organizational changes. E130 is revised for clarity and to add information on rates and fees applicable to keys and identification devices. E150 is added to provide information on qualified business reply mail. E200.14 is amended to reflect the elimination of single- piece Standard Mail (A) rates. E230.1, and E230.3 through E230.5 is revised to provide for separate 5-digit and 3-digit rates for Regular, Nonprofit, Classroom, and In-County subclasses, and to show that the applicable 3-digit rates will apply to both unique and nonunique 3- digit ZIP Code areas. E230.6 is revised to allow In-County mail to qualify for high density carrier walk-sequence rates based on either a minimum of 125 pieces per route or 25% of the total active possible deliveries on the carrier route. E230.7 is amended to require documentation for pieces and copies mailed to all 3-digit destinations, (not only unique 3-digit destinations). E240.2 is amended to is revised to provide for separate 5-digit and 3-digit rates for Regular, Nonprofit, Classroom, and In-County subclasses, and to show that the applicable 3-digit rates will apply to both unique and nonunique 3- digit ZIP Code areas. E600 is revised throughout to delete references to single-piece Standard Mail (A) and to change the name ``nonautomation presort'' to ``Presorted'' or ``Presorted Standard.'' E612 is revised to change the weight breakpoints for the Standard Mail (A) minimum per-piece rates, require Standard Mail (A) mailed at a Standard Mail (B) rate to show the applicable Standard Mail (B) marking, and to move restrictions on use of

[Page 37966]special services from E612.4.1 to new section E612.4.10. E620 and E630 are reorganized so that E620 contains standards for Standard Mail (A) and E630 contains standards for Standard Mail (B). E620 is revised to add new minimum volume requirements for Presorted Standard mailings, to add provisions for mailing certain matter not eligible for Standard Mail (A) rates that bears Standard Mail (A) markings at the single- piece First-Class or Priority Mail rates, and to add provisions for the new residual shape surcharge. E630 is revised to add provisions for new DSCF and DDU rates and new OBMC Presort, BMC Presort discounts, the oversized parcel provisions, and balloon rate provisions. E630 is revised to add provisions for a barcoded discount for Standard Mail (B) rates. E630 is revised to change marking requirements for Standard Mail (B). E640 is amended to clarify that Nonprofit rate mail may qualify for automation rates. E652 is revised to add provisions for DSCF and DDU Parcel Post rates.

F Forwarding and Related Services

F010 is amended throughout to delete references to single-piece Standard Mail (A). F010 is amended to revise forwarding and related services for Periodicals and for Standard Mail (A) to show that return postage is subject to the First-Class or Priority Mail rates based on weight, except for machinable Standard Mail (A) parcels returned under Bulk Parcel Return Service (BPRS). F020 is revised to remove references to single-piece Standard Mail (A).

G General Information

G043 is revised to add names and addresses of organizations from whom barcode specifications and barcode grading requirements can be obtained.

L Labeling Lists

Section L100, including labeling list L102, ADCs--Presorted Priority Mail, is deleted. New labeling list L605, BMCs--Nonmachinable Parcel Post, is added.

M Mail Preparation and Sortation

M011.1 is revised to add the definition of an overflow sack for Parcel Post DSCF rate mailings. M011.1 is revised to amend the definition of a mailing. M012 is revised to change marking requirements for Standard Mail (A) and (B), to clarify that no marking is needed for single-piece First-Class Mail, and to specify time frames for the new marking requirements. In M032, Exhibit 1.3 is revised to show headings for new Periodicals rate levels and for new Parcel Post rates and to change the name ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter.'' M033.1 is revised to reflect the new 13-ounce weight limit for First-Class Mail. M041 is revised to reflect requirements for new Standard Mail (B) rates (OBMC Presort, BMC presort, DSCF, DDU). M045 is revised to add preparation requirements for new Standard Mail (B) rates (OBMC Presort, BMC presort, DSCF, DDU). M050.4 is amended to reflect revised placement of sequencing date information on mailing statements and to add documentation requirements for the Periodicals In-County rate mail that qualifies for high density rates under the new 25% of the total active possible deliveries per carrier route criteria. M072.1.1 is amended for clarity. M072.2.5 is amended to delete references to ``Bulk Parcel Post,'' revise ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter,'' add an exception to the zone separation requirement, and to add information on preparation of drop shipment mail for Parcel Post DSCF and DDU rates. M073 is revised to add information about permissibility and preparation requirements for combining Standard Mail (A) and Standard Mail (B) parcels in mailings qualifying for new Parcel Post rates (OBMC Presort, BMC Presort, DSCF, and DDU). M120 is revised to delete the sections on Presorted Priority Mail. M200 is revised to require preparation of an SCF level of sack. M130.2 and M130.3 are amended to revise their titles. M130.5 is revised to reflect the new 13-ounce weight limit for First-Class Mail. M200.3 is revised to require preparation of an SCF sack for nonletters, to delete the provisions for an optional origin/ required entry 3-digit sack, and to add provisions for an optional origin/required entry SCF sack. M620 is revised to change ``nonautomation presort'' to ``Presorted,'' to revise references to E620 and E630, and to revise rate marking requirements including time frames for changing the ``Bulk Rate'' marking to ``Presorted Standard.'' M630 is amended to add preparation requirements for DSCF and DDU rates; to change ``nonautomation presort'' to ``Presorted;'' to revise references to E620 and E630; and to revise rate marking requirements for all Standard Mail (B) including placement of subclass markings, new generic rate markings for drop shipment rates, revising ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter, eliminating the ``Bulk Parcel Post'' marking, removing the requirement for a 5-digit or 3-digit ZIP Code in the rate marking for DBMC rates, eliminating the ``catalog rate'' marking for Bound Printed Matter, and adding the abbreviation ``PRSRT'' for ``Presorted'' in the ``Presorted Special Standard'' marking. M810 is reorganized and revised for clarity and to add new rate categories for Periodicals and to make the 5-digit/ scheme sortation level optional for Periodicals automation letters. M820 is revised to make the SCF sack a required level of presort for Periodicals automation flats, to delete the provisions for an optional origin/required entry 3-digit sack, and to add provisions for an optional origin/required entry SCF sack.

P Postage and Payment Methods

P011 is revised to delete references to single-piece Standard Mail (A). P012 revises standardized documentation for Periodicals to add separate 5-digit and 3-digit rates for both automation and nonautomation and to add new rate abbreviations for nonautomation 5- digit and 3-digit rates. P013 is revised to reflect payment for keys and identification devices at First-Class Mail and Priority Mail rates plus a $0.30 fee instead of single-piece Standard Mail (A) rates, to delete sections concerning computation of single-piece Standard Mail (A) rates, to revise the breakpoints for Standard Mail (A) rates, to delete references to Bulk Parcel Post, and to revise the term ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter.'' P014.2 is revised to delete references to single-piece Standard Mail (A). P030.1.5 is revised to reflect the new 13-ounce weight limit for First- Class Mail. P030.5.4 is revised to delete a reference to single-piece Standard Mail (A). P040.4.1 is revised to reflect the new rate marking requirements for First-Class and Standard Mail and delete examples for single-piece Standard Mail (A). P100 is revised to add payment provisions for mailing certain matter not eligible for Standard Mail (A) rates that bears Standard Mail (A) markings at the single-piece First-Class or Priority Mail rates. P600 is revised to establish postage payment methods for Standard Mail (B) containing a combination of discounts, to delete information on payment and use of ``SNGLP'' marking for single-piece Standard Mail (A), and to clarify that for mailings of identical weight, Standard Mail (A) postage may be affixed to all pieces in the mailing at the lowest rate in the mailing job. P710 is revised to reflect the new marking requirements for regular rate Standard Mail (A). P750 is revised to include instructions on the new Parcel Post DSCF and DDU rates. P760 is revised to change ``nonautomation'' to ``Presorted'' for Standard Mail (A) and to delete

[Page 37967]references to single-piece Standard Mail (A).

R Rates and Fees

The entire module is revised to reflect new rates and fees.

S Special Services

S010 is revised to add information on claims for the new bulk insurance service. S070 is revised to clarify applicability of Priority Mail Drop Shipment. S911 is revised to reflect changes to indemnity coverage for registered mail. S913 is revised to eliminate references to single-piece Standard Mail (A), to provide clarification to matter eligible for insurance, and to include rules for the new bulk insurance service. S915.1 and S915.2 are amended for clarity. S917 is amended to delete availability of return receipt for merchandise with single-piece Standard Mail (A). S921 is amended to delete availability of COD with single-piece Standard Mail (A). S922 is revised to change references from BRMAS to QBRM, to remove eligibility requirements for BRMAS (these are relocated under QBRM in E150), to require all BRM bearing barcodes to meet the requirements of C810 and C840 (except basis weight requirements for envelopes in C810.7.1), and to replace current BRM standards relative to reflectance requirements, paper weight, and self- mailers with current mailpiece design requirements in C810 and C830 (except basis weight requirements for envelopes in C810.7.1, and the retention and clarification of current prohibition of red fluorescence in excess of 4.0 phosphor meter units). S923 is revised to eliminate the return of merchandise return service pieces at single-piece Standard Mail (A) rates, to prescribe new rates of return and corresponding markings, and to reflect new standards concerning registered mail used with that service. S924 is revised to eliminate references to single-piece Standard Mail (A). S930 is amended to remove availability of special handling service for single-piece Standard Mail (A), and to correct the rules to allow First-Class Mail and Priority Mail to receive special handling.

List of Subjects in 39 CFR Part 111

Postal Service.

For the reasons discussed above, the Postal Service hereby adopts the following amendments to the Domestic Mail Manual, which is incorporated by reference in the Code of Federal Regulations (see 39 CFR Part 111).

PART 111--[AMENDED]

1. The authority citation for 39 CFR part 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001- 3011, 3201-3219, 3403-3406, 3621, 5001.

2. Revise the following sections of the Domestic Mail Manual as follows:

A Addressing

A000 Basic Addressing

* * * * *

A060 Detached Address Labels (DALs)

* * * * * 5.0 POSTAGE * * * * *

5.3 Returns

Amend the first sentence of 5.3 by replacing ``Standard Mail'' with ``First-Class Mail'' to read as follows:Postage for excess or undeliverable DALs that are properly endorsed or for items being returned is computed at the applicable single-piece rate (First-Class Mail, Priority Mail, or Standard Mail (B)) applicable to the combined weight of the DAL and the accompanying item, regardless of whether both are being returned. * * * * * * * *

C Characteristics and Content

C000 General Information

C010 General Mailability Standards

1.0 MINIMUM AND MAXIMUM DIMENSIONS * * * * *

1.6 Nonstandard Surcharge

Amend 1.6 by removing ``or C600, respectively,'' and ``or Single-Piece Standard Mail'' to read as follows:Because of address placement (orientation) under C100, a mailable piece of First-Class Mail weighing 1 ounce or less can be subject to the corresponding nonstandard surcharge. * * * * *

C022 Perishables

* * * * * 3.0 LIVE ANIMALS

3.1 Day-Old Poultry

Amend 3. 1f by adding ``or Priority Mail'' for clarity as follows:Day-old poultry vaccinated with Newcastle disease (live virus) is nonmailable. Live day-old chickens, ducks, geese, partridges, pheasants (mailable only from April through August), guinea fowl, quail, and turkeys are acceptable in the mail only if: * * * * *

f. The shipment bears special handling postage in addition to regular postage, unless sent at the First-Class Mail or Priority Mail rate. * * * * *

C024 Other Restricted or Nonmailable Matter

* * * * * 18.0 ODD-SHAPED ITEMS IN ENVELOPES

18.1 Nonmailable

Amend 18.1 by removing ``Standard Mail (A) rate'' to read as follows:Pens, bottle caps, and similar odd-shaped items are not acceptable in letter-size envelopes at the single-piece First-Class Mail rate. * * * * *

C050 Mail Processing Categories

* * * * *

Amend 5.0 to add ``Nonmachinable'' to the title as follows:5.0 IRREGULAR PARCEL (NONMACHINABLE) * * * * *

Amend 6.0 to add ``Nonmachinable'' to the title as follows:6.0 OUTSIDE PARCEL (NONMACHINABLE) * * * * *

C100 First-Class Mail

1.0 DIMENSIONS

1.1 Maximum Weight and Size

Revise 1.1 to show the new maximum weight of 13 ounces to read as follows:Each piece may not weigh more than 70 pounds. Matter at First-Class Mail rates may not exceed 13 ounces. The combined length and girth of a piece (i.e., the length of its longest side plus the distance around its thickest part) may not exceed 108 inches. (Lower size or weight standards apply to mail claimed at certain rates or addressed to certain APOs and FPOs.) * * * * * 4.0 NONSTANDARD MAIL

Revise 4.0 to include keys and identification devices as items subject to the nonstandard classification as follows:Except for Priority Mail, any piece of First-Class Mail (including keys or identification devices) weighing 1 ounce or less and not claimed at a card rate is nonstandard and subject to the applicable surcharge if its thickness

[Page 37968]exceeds \1/4\ inch or, if based on the placement (orientation) of the address, its length exceeds 11\1/2\ inches, its height exceeds 6\1/8\ inches, or its aspect ratio (length divided by height) is less than 1.3 or more than 2.5. * * * * *

C600 Standard Mail

1.0 DIMENSIONS

1.1 Standard Mail (A)

Amend 1.1b to read as follows:These dimensional standards apply to Standard Mail (A): * * * * *

b. Presorted (\3/5\ and basic rate) Regular and Nonprofit Standard Mail (A) are subject only to the basic mailability standards in C010. * * * * *

1.2 Standard Mail (B)

Amend and renumber 1.2 as follows to specify requirements for oversized Parcel Post and add a Parcel Post balloon rate:These dimensional standards apply to Standard Mail (B):

a. No piece may weigh more than 70 pounds, except matter at Bound Printed Matter rates may not weigh more than 15 pounds.

b. Except for Parcel Post under 1.2c, the combined length and girth of a piece (i.e., the length of its longest side plus the distance around its thickest part) may not exceed 108 inches.

c. Parcel Post pieces measuring over 108 inches in combined length and girth, but not more than 130 inches in combined length and girth, are mailable at the applicable oversized rate.

d. Parcel Post pieces measuring over 84 inches in combined length and girth, but not more than 108 inches in combined length and girth, and weighing less than 15 pounds are mailable at the rate equal to that of a 15-pound parcel for the zone to which the parcel is addressed.

e. Two or more packages may be mailed as a single parcel, if they are about the same size or shape or if they are parts of one article, if they are securely wrapped or fastened together, and if they do not together exceed the weight or size limits.

f. Lower size or weight standards apply to mail claimed at certain rates, addressed to certain APOs and FPOs, or sent by the Department of State to U.S. Government personnel abroad.

g. Pieces might be subject to minimum weight or dimensions based on the standards for specific rates.

Delete current 2.1, renumber current 2.2 as 2.0 and revise to read as follows:2.0 NONMACHINABLE SURCHARGE

Items described in E630 and mailed at the inter-BMC/ASF Parcel Post rates are subject to a nonmachinable surcharge unless the applicable special handling fee is paid. * * * * *

C800 Automation-Compatible Mail

C810 Letters and Cards

* * * * * 2.0 DIMENSIONS * * * * *

2.3 Maximum Weight

Amend 2.3c through 2.3f to revise the maximum ounce weights for heavy letters to read as follows:Maximum weight limits are as follows: * * * * *

c. 3.3087 ounces: automation Regular Standard Mail (A) heavy letters, subject to 7.5.

d. 3.3062 ounces: automation Enhanced Carrier Route heavy letters, subject to 7.5.

e. 3.2873 ounces: automation Nonprofit Standard Mail (A) heavy letters, subject to 7.5.

f. 3.3103 ounces: automation Nonprofit Enhanced Carrier Route, automation First-Class Mail, and automation Periodicals heavy letters, subject to 7.5. * * * * *

C820 Flats

* * * * * 2.0 DIMENSIONS * * * * *

2.4 Maximum Weight

Revise 2.4 to show the new maximum weight of 13 ounces to read as follows:Maximum weight limits are as follows:

a. For First-Class Mail, 13 ounces.

b. For Periodicals, 16 ounces.

c. For Standard Mail (A), less than 16 ounces * * * * *

C840 Barcoding Standards

* * * * * 8.0 5-DIGIT AND ZIP+4 BARCODES

Revise the title and add a new sentence to 8.1 to read as follows:8.1 Permissibility

An automation rate letter-size piece may not bear a 5-digit or ZIP+4 barcode in the lower right corner (barcode clear zone); the piece may bear a 5-digit or ZIP+4 barcode in the address block only if a DPBC appears in the lower right corner. A Qualified Business Reply Mail piece and other barcoded letter-size Business Reply Mail must only bear a ZIP+4 barcode; the ZIP+4 barcode may appear in the address block when printed on an insert that appears through a window or on an address label affixed directly to the piece; or may appear in the lower right corner either printed directly on the mailpiece or on an insert that appears through a window. An automation rate flat-size piece must not bear a 5-digit barcode. * * * * *

Add new C850 to read as follows.C850 Standard Mail (B) Barcode Standards

1.0 BARCODE SYMBOLOGIES

1.1 Basic Requirement

Every addressed mailpiece eligible for a Standard Mail (B) barcode discount described in E630 must bear a properly prepared barcode that represents the correct ZIP Code information for the address on the mailpiece plus the appropriate verifier character suffix or application identifier prefix characters appropriate for the barcode symbology used as described in 1.0 through 4.0. The combination of appropriate ZIP Code and appropriate verifier or application identifier characters uniquely identifies the barcode as the postal routing code.

1.2 Permissible Barcode Symbologies.

Until January 10, 2004, barcodes must be printed in one of the following symbologies: UCC/EAN Code 128; USS Code 128; USS Code I \2/ 5\; and USS Code 39. Effective January 10, 2004, only the UCC/EAN Code 128 may be used.

1.3 Postal Routing Barcode Elements

a. UCC/EAN Code 128. For barcodes prepared using the UCC/EAN Code 128 symbology the postal routing barcode must consist of the leading Application Identifier (AI) of ``420'' followed by the ZIP Code for the address on the mailpiece. The ZIP Code for the address on the mailpiece may be either the 5-digit ZIP Code or the ZIP+4 code. The Application Identifier indicates the meaning of the barcode. The USPS has designated 420 as the AI for domestic postal routing barcodes (and 421 as the AI for international postal routing barcodes). UCC/EAN Code 128 barcodes MUST NOT include the trailing verifier character ``9''.

b. Other Permissible Symbologies. For the USS Code 128, USS Code I \2/5\, and USS Code 39 symbologies, the postal routing barcode must consist of the 5-digit ZIP Code for the address on the

[Page 37969]mailpiece, followed by the 1-digit verifier character ``9.'' Barcodes prepared under these symbologies MUST NOT include the prefix ``420.''

1.4 Technical Specifications

UCC/EAN Code 128 barcodes must meet the technical specifications in the ``UCC/EAN-128 Application Identifier Standard,'' which can be obtained from Uniform Code Council, Inc. and the specifications in 2.0. The UCC specifications can be obtained from: UNIFORM CODE COUNCIL, INC, 8163 OLD YANKEE RD STE J, DAYTON OH 45458-1839

USS Code I 2/5, USS Code 39, and USS Code 128 barcodes must meet the technical specifications in Uniform Symbology Specification (USS) documents USS-I 2/5, USS-39, and USS-128, respectively, and the specifications in 2.0. The USS Code specifications are available from: AUTOMATIC IDENTIFICATION MANUFACTURERS (AIM), 634 ALPHA DR, PITTSBURGH PA 15238-2802, www.aimusa.org

1.5 One Postal Routing Barcode.

A mailer may include more than one barcode on a mailpiece provided there is only one barcode that is prepared under the postal routing code structure. That is, a mailpiece must contain only one barcode encoded with a 5-digit numeric code followed by the character ``9'' or encoded with ``420'' followed by a 5-digit or 9-digit numeric code. 2.0 BARCODE CHARACTERISTICS

2.1 Dimensions

The preferred range of widths of narrow bars and spaces is 0.015 inch to 0.017 inch. The width of the narrow bars or spaces must be at least 0.013 inch but no more than 0.021 inch. All bars must be at least 0.75 inch high. The wide/narrow bar width ratio for Code I 2/5 and Code 39 must be at least 2.5 to 1.

2.2 Reflectance

When measured in the red spectral range between 630 nanometers and 675 nanometers, the minimum white bar (space) reflectance (Rs) must be greater than 50%, and the maximum bar reflectance (Rb) must be less than 25%. The minimum print reflectance difference (Rs-Rb) is 40%. Reflectance must be measured with a USPS-specified reflectance meter or barcode verifier.

2.3 Quality

All barcodes in each mailing must measure American National Standards Institute (ANSI) grade C or above. At least 70% of the barcodes in each mailing must measure ANSI grade A or B. For all printing processes, it is strongly recommended that the symbols be tested to ensure that they meet specification requirements. Information concerning ANSI guidelines X3.182-1990 may be obtained from: AMERICAN STANDARDS INSTITUTE INC, 11 W 42ND ST, NEW YORK NY 10036-8002, (212) 642-4900

2.4 Substrate Material

All barcode symbols must be printed on substrate material that preserves the optical specification as described in the AIM-USA Uniform Symbology Specification documents. Typically, white label stock commonly used for barcode generation is suitable, providing it is not glossy (causing mirror-like [specular] reflection) nor prone to smearing or smudging. 3.0 BARCODE LOCATION

3.1 General Standards

The address and barcode must be on the side of the mailpiece with the largest surface area, except that the address and barcode must be on the top surface of the mailpiece when its shape requires specific orientation for stability during automated processing. The barcode should be placed immediately adjacent to the address and at least 1 inch from the edge of the mailpiece. The delivery address or barcode may be printed on an attachment or on an enclosure in a window envelope, subject to the reflectance standards in 2.2.

3.2 Barcode Clear Zone

The barcode must be located as specified in 3.1. No printing may appear in an area \1/8\ inch above and below the barcode regardless of location. A minimum clear zone equal to 10 times the average measured narrow element (bars or space) width must be maintained to the left and right of the barcode. 4.0 BARCODE CONTENT

4.1 Human-Readable Barcode Information

If the barcode is printed on the same label as the mailing address, and in close proximity to that address, the human-readable equivalent of the ZIP Code or ZIP+4 code encoded in the barcode may be omitted. If the barcode is printed on a separate label from the mailing address, the human-readable equivalent of the 5-digit ZIP Code or ZIP+4 code encoded in the barcode (i.e., omitting the existing ``420'' Application Identifier for UCC/EAN 128 and omitting the existing ``9'' verifier character for the other three barcode symbologies) must be printed between \1/8\ inch and \1/2\ inch below the barcode preceded by the word ``ZIP'' in 10 point or larger bold sans serif type. In addition, the location of the word ``ZIP'' may be alternatively placed no less than 10 time the average narrow bar or space element width and not more than \1/2\ inch to the left of the barcode, in 12 point or larger bold sans serif type. * * * * *

D Deposit, Collection, and Delivery

D000 Basic Information

D010 Pickup Service

1.0 BASIC STANDARDS

1.1 Availability

Amend 1.1b to delete the term ``single-piece rate'' to read as follows:Subject to the standards in D010, pickup service is available from designated post offices for: * * * * *

b. Priority Mail. * * * * *

1.2 Not Available

Amend 1.2c to include all destination entry rate pieces as follows:Pickup service is not available for pieces: * * * * *

c. Claimed at the Parcel Post DBMC, DSCF, or DDU destination entry rates, or claiming the Parcel Post OBMC Presort discount. * * * * *

D600 Standard Mail

* * * * * 2.0 MAIL DEPOSIT

Amend the heading and contents of 2.1 to read as follows:2.1 Single-Piece Standard Mail (B) Rates

Single-piece rate Standard Mail (B) must be deposited at a time and place specified by the mailing post office postmaster. Metered mail must be deposited in locations under the jurisdiction of the licensing post office, except as permitted in D072. Permit imprint mail must be presented at the post office under P040 or P700. Precanceled stamp mail must be presented at the post office under P023.

E Eligibility

E000 Special Eligibility Standards

* * * * *

E060 Official Mail (Penalty)

* * * * *

[Page 37970]5.0 SERVICES, CLASSES, RATES, PREPARATION, AND DETENTION * * * * *

5.3 Basic Preparation

Revise 5.3d to incorporate the new 13-ounce weight limit for First- Class Mail as follows:Penalty mail must: * * * * *

d. Be endorsed for class or rate except for single-piece rate First-Class Mail not exceeding 13 ounces and single-piece rate Parcel Post. All mail with penalty mail stamps, other than First-Class Mail weighing 13 ounces or less, must be marked to show the class at which it is mailed. * * * * * 12.0 PENALTY MERCHANDISE RETURN SERVICE

12.1 Description

Amend 12.1 by inserting ``(B)'' and by removing ``Single-Piece Standard Mail'' to read as follows:Merchandise return service allows a merchandise return permit holder to authorize individuals and organizations to send single-piece First-Class Mail (including Priority Mail) and single-piece Standard Mail (B) (Parcel Post, Special Standard Mail, and Bound Printed Matter) to the permit holder. The permit holder pays the return postage and fees. * * * * *

E 100 First-Class Mail

E110 Basic Standards

* * * * * 4.0 FEES

4.1 Presort Mailing

Amend the first sentence of 4.1 to delete the reference to Presorted Priority Mail to read as follows:A First-Class Mail presort mailing fee must be paid once each 12- month period at each office of mailing by any person or organization entering mailings at automation or Presorted First-Class Mail rates. Payment of one fee allows a mailer to enter mail at both those rates. Persons or organizations paying this fee may enter mail of their clients as well as their own mail. The fee may be paid in advance only for the next year and only during the last 30 days of the current service period. The fee charged is that which is in effect on the date of payment. * * * * *

E120 Priority Mail

1.0 BASIC STANDARDS

1.1 Description

Revise 1.1 to reflect the new maximum weight of First-Class Mail to read as follows:Priority Mail is First-Class Mail weighing more than 13 ounces and, at the mailer's option, any other mail matter (including regular First- Class Mail) weighing 13 ounces or less. Priority Mail rates are based on zone and/or weight. * * * * *

Delete current 1.4, renumber current 2.2 as new 1.4 to read as follows:1.4 Marking

The marking ``Priority'' or ``Priority Mail'' must be placed prominently on the address side of each piece of Priority Mail.

Amend 2.0 to read as follows:2.0 RATES

2.1 Application

Priority Mail rates apply to pieces meeting the standards in 1.0.

2.2 Flat Rate Envelope

Any amount of material that can be mailed in the special flat rate envelope available from the USPS is subject to the 2-pound Priority Mail rate, regardless of the weight of the material placed in the envelope.

2.3 Balloon Rate

Items weighing less than 15 pounds but measuring more than 84 inches in combined length and girth are charged a minimum rate equal to that for a 15-pound parcel for the zone to which it is addressed.

2.4 Keys and Identification Devices

Keys and identification devices (identification cards or uncovered identification tags) that weigh more than 13 ounces but not more than 2 pounds are returned at the 2-pound Priority Mail rate plus a $0.30 fee if they bear, contain, or have securely attached the name and complete address of a person, organization, or concern, with instructions to return the piece to that address and a statement guaranteeing payment of postage due on delivery.

Delete current 3.0 pertaining to Presorted Priority Mail.E130 Nonautomation Rates

1.0 BASIC STANDARDS

1.1 All Pieces

Revise 1.1 to reflect the new maximum weight for First-Class Mail to read as follows:All pieces of nonautomation First-Class Mail must:

a. Meet the basic standards for First-Class Mail in E110.

b. Weigh 13 ounces or less.

c. Bear a delivery address.

d. Meet the applicable documentation and postage payment standards in P012, P013, and P100. * * * * *

Delete 1.3.2.0 SINGLE-PIECE RATE

Revise 2.1, renumber 2.2 as 2.3, and insert new 2.2 to read as follows:2.1 Rate Application

The single-piece rates for First-Class Mail are applied as follows:

a. The card rate applies to a card meeting the applicable standards in C100 that is not eligible for or claimed at the Presorted rate, an automation rate, or a qualified business reply mail (QBRM) rate.

b. The letter rate applies to any other First-Class Mail (letter, flat, and parcel) weighing 13 ounces or less that is not eligible for and claimed at the card rate, the Presorted rate, an automation rate, a qualified business reply mail (QBRM) rate, or required to be paid at a rate for keys and identification devices.

2.2 Keys and Identification Devices

Keys and identification devices (identification cards or uncovered identification tags) that weigh not more than 13 ounces are mailed at the applicable single-piece letter rate, plus a $0.30 fee, and if applicable, the nonstandard surcharge. The keys and identification devices must bear, contain, or have securely attached, the name and complete address of a person, organization, or concern, with instructions to return the piece to that address and a statement guaranteeing payment of postage due on delivery. * * * * *

Insert new 4.0 to read as follows:4.0 NONSTANDARD SURCHARGE

Single-piece (including keys and identification devices) and Presorted First-Class Mail are subject to the applicable nonstandard surcharge in R100 if they are not mailed at the card rate, weigh 1 ounce or less, and meet the definition of nonstandard mail in C100. * * * * *

Insert new E150 to read as follows:

[Page 37971]E150 Qualified Business Reply Mail (QBRM) Rates

1.0 BASIC STANDARDS

1.1 Description

Qualified Business Reply Mail (QBRM) is First-Class Mail that:

a. Is letter-size and is prepared to meet the automation compatibility requirements in C810 (except 7.1).

b. Meets all the Business Reply Mail (BRM) standards in S922.

c. Has postage and BRM per-piece fees paid through a business reply mail advance deposit account.

d. Is authorized to mail at QBRM rates and fees under 2.0. During the authorization process, the mailer is assigned a unique ZIP+4 code for each rate category of QBRM to be returned under the system (one for card-rate pieces, one for letter-size pieces weighing 1 ounce or less, and one for letter-size pieces weighing over 1 ounce up to and including 2 ounces).

e. Bears the unique ZIP+4 code assigned during the application process in the address of each piece distributed. The ZIP+4 code on each piece must be the proper one assigned to the rate category of the piece on its return. The ZIP+4 codes assigned for this program must be used only on the organization's appropriate QBRM pieces.

f. Bears the correct barcode that corresponds to the unique ZIP+4 code in the address on each piece distributed. The barcode must be correctly prepared under C840 and S922.5.

g. Bears a properly prepared facing identification mark (FIM) C on each piece distributed. 2.0 AUTHORIZATION

To participate in QBRM, the mailer must submit a written request to open a QBRM account to the postmaster or business mail entry manager at the post office to which the pieces are to be returned. If the mailer's request is approved, the USPS issues the mailer an authorization letter and instructions on how to prepare BRM, including the ZIP+4 codes to be used. The mailer must have a valid BRM permit and pay the annual accounting fee to participate in QBRM. Preproduction samples, if provided with the request, are reviewed by the USPS for compliance with the relevant standards. Any BRM approved under the former Business Reply Mail Accounting System need not make reapplication to qualify for QBRM. 3.0 RATES AND FEES

3.1 Rates

The single-piece rates for QBRM First-Class Mail are applied to each returned piece as follows:

a. The QBRM rate for cards in R100 applies to a card meeting the applicable standards in 1.0 and C100.

b. The QBRM rate for letters in R100 applies to a letter meeting the applicable standards in 1.0 that is not eligible for and claimed at the QBRM rate for cards.

3.2 Fees

The following fees apply to QBRM First-Class Mail:

a. The annual BRM permit fee in S922 and R900.

b. The annual BRM accounting fee in S922 and R900.

c. The QBRM fee in R900 for each returned piece.

E200 Periodicals

E210 Basic Standards

E211 All Periodicals

* * * * * 14.0 BASIC RATE ELIGIBILITY * * * * *

14.4 Copies Mailed by Public

Amend 14.4 by adding ``Priority'' and ``(B)'' to read as follows:The applicable single-piece First-Class, Priority, or Standard Mail (B) rate is charged on copies of publications mailed by the general public (i.e., other than publishers or registered news agents) and on copies returned to publishers or news agents. * * * * *

E230 Nonautomation Rates

1.0 BASIC INFORMATION * * * * *

1.3 ZIP Code Accuracy

In the first sentence, change ``3/5'' to ``5-digit, 3-digit,'' to read as follows:All 5-digit ZIP Codes in addresses on pieces claimed at the 5- digit, 3-digit, or basic rates must be verified and corrected within 12 months before the mailing date by a USPS-approved method. * * * * * * * *

Replace current 3.0 through 5.0 with new 3.0 through 5.0 to read as follows:3.0 5-DIGIT RATES

Subject to M200, 5-digit rates apply to:

a. Letter-size pieces in 5-digit packages of six or more pieces each, placed in 5-digit trays.

b. Flat-size pieces in 5-digit packages of six or more pieces each, placed in 5-digit sacks or palletized under M045. 4.0 3-DIGIT RATES

Subject to M200, 3-digit rates apply to:

a. Letter-size pieces in 5-digit and 3-digit packages of six or more pieces each, placed in 3-digit trays.

b. Flat-size pieces in 5-digit and 3-digit packages of six or more pieces each, placed in 3-digit sacks or palletized under M045. 5.0 BASIC RATES

Basic rates apply to pieces prepared under M200 that are not claimed at carrier route, 5-digit, or 3-digit rates. 6.0 WALK-SEQUENCE DISCOUNTS * * * * *

6.4 Density Standards

Revise 6.4b, renumber 6.4c through 6.4d as 6.4d through 6.4e, insert new 6.4c, and revise renumbered 6.4e to read as follows:Walk-sequence rate mailings are subject to these density standards: * * * * *

b. Except under 6.4c, at least 125 walk-sequenced addressed pieces must be prepared for each carrier route receiving mail claimed at the high density rate. Mail for carrier routes of 124 or fewer possible deliveries can qualify for the high density rate if there are at least 125 addressed pieces for the route, or if pieces are addressed to every possible delivery on the route. This mail may also qualify for the saturation rate, subject to 6.4e. In-County rate pieces may also qualify for high density rates under 6.4c.

c. Mail may qualify for In-County high density rates when there are addressed pieces for a minimum of 25% of the total active possible deliveries on a carrier route. If a route contains addresses both within and outside the county, the number of pieces addressed to the entire carrier route will be used to determine if the 25% requirement has been met. However, for such carrier routes meeting the 25% requirement, only the pieces for that carrier route that are addressed to addresses within the county in which the original entry is located may qualify for the In-County high density rates. * * * * *

e. More than one addressed piece per delivery address may be included in a high density rate mailing and may be counted for the density standard, in 6.4b, for the high density rate. Only one piece per delivery address may be counted toward the density standards

[Page 37972]for high density in 6.4c and for the saturation rate in 6.4d. 7.0 COMBINING MULTIPLE PUBLICATIONS OR EDITIONS * * * * *

7.4 Documentation Elements

Amend the first sentence of 7.4 to read as follows:Presort documentation required under P012 also must show the total number of addressed pieces and copies of each publication or edition mailed to each carrier route, 5-digit, and 3-digit destination. * * * * * * * *

E240 Automation Rates

* * * * * 2.0 RATE APPLICATION

Replace current 2.1 through 2.3 with new 2.1 through 2.3 to read as follows:2.1 5-Digit Rates

Subject to M200, 5-digit automation rates apply to:

a. Letters. 5-digit rates apply to groups of 150 or more pieces to the same 5-digit or 5-digit scheme placed in a 5-digit or 5-digit scheme tray or trays prepared under M810. (Preparation to qualify for the 5-digit rate is optional, and if performed, need not be done for all 5-digit or 5-digit scheme destinations.)

b. Flats. 5-digit rates apply to pieces in 5-digit packages of six or more pieces each, prepared under M820 or M045.

2.2 3-Digit Rates

Subject to M200, 3-digit automation rates apply to:

a. Letters. 3-digit rates apply to groups of 150 or more pieces to the same 3-digit or 3-digit scheme placed in a 3-digit/scheme tray or trays under M810.

b. Flats. 3-digit rates apply to pieces in 3-digit packages of six or more pieces each, prepared under M820 or M045.

2.3 Basic Rates

Subject to M200, basic automation rates apply to:

a. Letters. Basic rates apply to pieces prepared under M810 that are not claimed at 5-digit or 3-digit rates.

b. Flats. Basic rates apply to pieces prepared under M820 or M045 that are not claimed at 5-digit or 3-digit rates. * * * * *

E600 Standard Mail

E610 Basic Standards

E611 All Standard Mail

1.0 BASIC INFORMATION: * * * * * 1.8 Documentation

Amend the reference to single-piece rate mail to specify single-piece Standard Mail (B) as follows:A postage statement, completed and signed by the mailer, using the correct USPS form or an approved facsimile, must be submitted with each mailing except for single-piece rate Standard Mail (B) mailings in which the correct postage is affixed to each piece. Additional supporting documentation may be required by the standards for the rate claimed or postage payment method used.

E612 Additional Standards for Standard Mail (A)

* * * * *

Amend the heading of 4.0 by removing ``BULK'' to read as follows:4.0 RATES

4.1 General Information

Revise the section numbers and the names of nonautomation rates and remove information about special services to read as follows:All Standard Mail (A) rates are bulk rates (sometimes referred to as presort rates). Bulk rates apply to mailings meeting the basic standards in E611 and the corresponding standards for Enhanced Carrier Route, automation, Presorted, and destination entry in E620, E640, and E650 as appropriate for the rate claimed. Nonprofit rates may be used only by organizations authorized by the USPS under E670. Not all processing categories qualify for every bulk rate.

4.2 Minimum Per-Piece Rates

In the first sentence, change ``nonautomation'' to ``Presorted'' and amend the weight breakpoints for the minimum per-piece rates as follows:The minimum per piece rates (i.e., the minimum postage that must be paid for each piece) apply to Enhanced Carrier Route rate pieces weighing no more than 0.2066 pound rounded (3.3062 ounces rounded); Regular Presorted and automation rate pieces weighing no more than 0.2068 pound rounded (3.3087 ounces rounded); Nonprofit Enhanced Carrier Route rate pieces weighing no more than 0.2069 pound rounded (3.3103 ounces rounded); and Nonprofit Presorted and automation rate pieces weighing no more than 0.2055 pound rounded (3.2873 ounces rounded). * * * * * * * *

4.6 Exception

Amend 4.6 by revising the second sentence to read as follows:When the postage computed at the bulk Standard Mail (A) rates is higher than a Standard Mail (B) rate for which the matter and the mailing could qualify except for its weight, the Standard Mail (B) rate may be paid without adding needless weight. When the Standard Mail (B) rate is paid, the pieces must bear the rate marking appropriate for the Standard Mail (B) rate at which postage is paid. All other standards for bulk Standard Mail (A) apply, including mail preparation. * * * * *

4.9 Preparation

Amend 4.9b to read as follows:Each bulk rate mailing is subject to these general standards: * * * * *

b. Each mailing must contain at least 200 pieces or 50 pounds of pieces. See E620.1.2 for volume requirement eligibility unique to Presorted Standard rate mailings. Other volume standards also can apply, based on the rate claimed. * * * * *

Add new 4.10 as follows:4.10 Special Services

Bulk rate Standard Mail (A) may not use certified, collect on delivery (COD), insurance, registered, return receipt, return receipt for merchandise, or special handling. * * * * *

Revise the title of E620. Delete current 1.0. Move current E620.2.0 through 5.7 into E630. Renumber current E630.1.0 through E630.2.9 as E620.1.0 through E620.2.9. Renumber E620.1.2 as E620.1.5; renumber E620.1.3 as E620.1.4; add new E620.1.2,E620.1.3, E620.1.6, and E620.2.10; and revise to read as follows:E620 Nonautomation Standard Mail (A) Rates

1.0 PRESORTED REGULAR AND NONPROFIT RATES

1.1 Basic Standards

All pieces in a Presorted Regular or Presorted Nonprofit Standard Mail (A) mailing must:

a. Meet the basic standards for Standard Mail in E611 and E612.

b. Except as provided in 1.2, be part of a single mailing of at least 200 pieces or 50 pounds of pieces qualifying for Presorted Standard Mail (A). Regular and Nonprofit mailings must meet separate minimum volumes.

c. Bear a delivery address that includes the correct ZIP Code or ZIP+4 code, unless an alternative address format is used subject to A040.

[Page 37973]Upgradable pieces are subject to additional standards in M610. Pieces prepared with detached address labels are subject to additional standards in A060.

d. Be marked, sorted, and documented as specified in M610.

1.2 Residual Volume Requirement

Pieces in an Enhanced Carrier Route rate mailing that has separately met a 200 piece or 50 pound minimum quantity requirement may be counted toward the minimum quantity requirement for a Presorted rate mailing, provided that the Enhanced Carrier Route rate mailing and the Presorted rate mailing are part of the same mailing job and are reported on the same postage statement. Likewise, pieces in an automation rate mailing that has separately met a 200 piece or 50 pound minimum quantity requirement may be counted toward the minimum quantity requirement for a Presorted rate mailing, provided that the automation rate mailing and the Presorted mailing are part of the same mailing job and are reported on the same postage statement. Pieces mailed at Presorted Standard Mail (A) rates must not be counted toward the minimum volume requirements for an Enhanced Carrier Route rate or an automation rate mailing.

1.3 Residual Mail Subject to First-Class or Priority Mail Rates

Pieces prepared as Standard Mail (A) (i.e., bear Standard Mail (A) rate markings, ancillary service markings, etc.) that do not qualify for Enhanced Carrier Route, automation, or Presorted Standard Mail (A) rates are subject to the single-piece First-Class or Priority Mail rates as applicable for the weight of the mailpiece. Metered pieces weighing over 13 ounces, but less than 16 ounces that do not qualify for Standard Mail (A) rates, and any mailpieces that do not qualify for Standard Mail (A) rates for which First-Class or Priority Mail service is desired, must be re-enveloped or otherwise prepared so that they do not bear Standard Mail (A) markings, endorsements and ACS codes, and must bear the proper First-Class Mail or Priority Mail rate markings, ancillary service endorsements, and ACS codes. Mailers who have pieces (other than metered pieces weighing over 13 ounces, but less than 16 ounces) that do not qualify for Standard Mail (A) rates, but that are prepared as Standard Mail (A), and who do not desire to receive First- Class Mail or Priority Mail service for those pieces, may enter their mailpieces ``as is'' (i.e., bearing the Standard Mail (A) markings and endorsements), provided the requirements in P100 are met.

1.4 ZIP Code Accuracy

All 5-digit ZIP Codes included in addresses on pieces claimed at regular Presorted and Nonprofit Presorted rates must be verified and corrected within 12 months before the mailing date, using a USPS- approved method. The mailer must certify that this standard has been met when the corresponding mail is presented to the USPS. This standard applies to each address individually, not to a specific list of mailing. An address meeting this standard may be used in mailings at any other rates to which the standard applies during the 12-month period after its most recent update.

1.5 Presorted Rates

Presorted Regular or Nonprofit Standard Mail (\3/5\ and basic) rates apply to Regular or Nonprofit Standard Mail letters, flats, and machinable and irregular parcels weighing less than 16 ounces, that are prepared under M610 or palletized under M045. Basic rates apply to pieces that do not meet the standards for the \3/5\ rates described below. Basic rate and \3/5\ rate pieces prepared as part of the same mailing are subject to a single minimum volume standard. Pieces that do not qualify for the \3/5\ rate must be paid at the basic rate and prepared accordingly. Pieces may qualify for the \3/5\ rate if they are presented:

a. In quantities of 150 or more letter-size pieces for a single 3- digit area, prepared in 5-digit or 3-digit packages of 10 or more pieces each and placed in 5-digit or 3-digit trays.

b. In quantities of 150 or more upgradable letter-size pieces (as defined in M610) for a single 3-digit area and placed in 5-digit or 3- digit trays.

c. In a 5-digit or 3-digit package of 10 or more flat-size pieces and placed in a 5-digit or 3-digit sack containing at least 125 pieces or 15 pounds of pieces.

d. In a 5-digit or 3-digit package of 10 or more flat-size pieces palletized under M045.

e. In a 5-digit, destination ASF (if required), or destination BMC sack containing at least 10 pounds of machinable parcels. (The \3/5\ rates are available only if all possible 5-digit sacks are prepared.)

f. On a 5-digit, destination ASF (if required), or destination BMC pallet of machinable parcels. (The \3/5\ rates are available only if all possible 5-digit pallets are prepared.)

g. In a 5-digit or 3-digit sack of irregular parcels containing at least 125 pieces or 15 pounds of pieces.

1.6 Residual Shape (Parcel) Surcharge

Presorted Standard Mail that is prepared as a parcel, or is not letter-size or flat-size as defined in C050, is subject to the residual shape surcharge. 2.0 ENHANCED CARRIER ROUTE RATES

2.1 All Pieces

All pieces in an Enhanced Carrier Route Standard Mail mailing (letters, flats, or irregular parcels, including merchandise samples distributed with detached address labels) must:

a. Meet the basic standards for Standard Mail in E611 and E612.

b. Be part of a single mailing of at least 200 pieces or 50 pounds of pieces of Enhanced Carrier Route Standard Mail, except that automation basic carrier route rate pieces are subject to a separate 200-piece/50-pound minimum volume standard and may not be included in the same mailing as other Enhanced Carrier Route mail. Regular and Nonprofit mailings must meet separate minimum volumes.

c. Be sorted to carrier routes, marked, and documented under M045 (if palletized) or M620.

2.2 Flats and Merchandise Samples

Enhanced Carrier Route rate mail may not be more than 11-\3/4\ inches high, 14 inches long, or \3/4\-inch thick. Merchandise samples with detached address labels may exceed these dimensions if the labels meet the standards in A060.

2.3 Preparation

Preparation to qualify for any of the Enhanced Carrier Route rates is optional and need not be performed for all carrier routes in a 5- digit area. An Enhanced Carrier Route mailing may include pieces at basic, high-density, and saturation Enhanced Carrier Route rates. Automation basic carrier route rate pieces must be prepared as a separate mailing, subject to the eligibility standards in E640.

2.4 Carrier Route Information

Except for mailings prepared with a simplified address under A040, carrier route codes must be applied to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme, hard copy CRIS files, or another AIS product containing carrier route information, subject to A930 and A950. Carrier route information must be updated within 90 days before the mailing date.

[Page 37974]2.5 Sequencing

Basic carrier route rate mail must be prepared either in carrier walk sequence or in line-of-travel (LOT) sequence according to LOT schemes prescribed by the USPS (see M050). High-density and saturation rate mailings must be prepared in carrier walk sequence according to schemes prescribed by the USPS.

2.6 Addressing

Saturation rate mail may be prepared with detached address labels, subject to A060, or with an alternative addressing format, subject to A040. High-density pieces must have a complete delivery address or an address in occupant or exceptional format. Saturation pieces addressed for delivery on a city route must have a complete delivery address or an address in occupant or exceptional format, except that official mail from certain government entities also may use the simplified format. Saturation pieces for delivery on rural or highway contract routes, or through general delivery or a post office box, must have a complete delivery address or an alternative address format.

2.7 Density

High-density and saturation rate mailings are subject to these density standards:

a. There is no minimum volume per 5-digit ZIP Code delivery area. Pieces need not be sent to all carrier routes within a 5-digit delivery area.

b. For the high-density rate, at least 125 pieces must be prepared for each carrier route for which that discount is claimed, except that fewer pieces may be prepared and the high-density rate may be claimed for carrier routes of 124 or fewer possible deliveries if a piece is addressed to every possible delivery on the route. Multiple pieces per delivery address can count toward this density standard.

c. For the saturation rate, pieces must be addressed either to 90% or more of the active residential addresses or to 75% or more of the total number of active possible delivery addresses, whichever is less, on each carrier route receiving this mail, except that mail addressed in the simplified address format must meet the 100% coverage standard in A040. Multiple pieces per delivery address do not count toward this delivery standard. Sacks with fewer than 125 pieces and less than 15 pounds of pieces may be prepared to a carrier route when the saturation rate is claimed for the contents and the applicable density standard is met.

2.8 Basic Rates

Basic (nonautomation) carrier route rates apply to each piece that is sorted under M620 into the corresponding qualifying groups:

a. Letter-size pieces in a full carrier route tray, or in a carrier route package of 10 or more pieces placed in a 5-digit carrier routes or 3-digit carrier routes tray.

b. Flat-size pieces in a carrier route package of 10 or more pieces palletized under M045, or placed in a carrier route sack containing at least 125 pieces or 15 pounds of pieces or in a 5-digit carrier routes sack.

c. Irregular parcels (merchandise samples prepared with detached address labels under A060) in a carrier route sack or in a carrier route carton(s) containing a total of 125 pieces or 15 pounds of pieces, or in a 5-digit carrier routes sack or carton. (DALs must be in carrier route packages of 10 or more pieces and prepared under A060.)

2.9 High-Density and Saturation

High-density and saturation rates apply to pieces qualified for the basic rates that also meet the applicable addressing and density standards in 2.6 and 2.7.

2.10 Residual Shape (Parcel) Surcharge

Enhanced Carrier Route mail that is prepared as a parcel, or is not letter-size or flat-size as defined in C050, is subject to the residual shape surcharge.

Revise the title of E630 as follows:E630 Standard Mail (B)

Delete current 630.1 through 630.2. Insert new 630.1 through 630.5.9, which combines former E620.2 through E620.5 with former E630.3 and E630.4 to reorganize and separate standards for Standard Mail (A) from those for Standard Mail (B) and to include new Standard Mail (B) rate categories to read as follows:1.0 PARCEL POST

1.1 Basic Standards

Parcel Post is Standard Mail weighing 16 ounces or more that is not mailed as Bound Printed Matter, Special Standard Mail, or Library Mail. Any Standard Mail (B) matter may be mailed at Parcel Post rates, subject to the basic standards in E611 and E613.

1.2 Enclosures

Parcel Post may contain any printed matter mailable as Standard Mail (A), in addition to the enclosures and additions listed in E611.

1.3 Rate Eligibility

There are five Parcel Post rate categories: Intra-BMC, Inter-BMC, destination bulk mail center (DBMC), destination sectional center facility (DSCF), and destination delivery unit (DDU). Intra-BMC, Inter- BMC, and DBMC Parcel Post rates are calculated based on the zone to which the parcel is addressed and the weight of the parcel. DSCF and DDU rates are calculated based on the weight of the parcel. Generally, Intra-BMC rates apply to parcels mailed and delivered within the same BMC service area and Inter-BMC rates apply to parcels mailed in one BMC service area and delivered in a different BMC service area. Specific standards for Inter-BMC and Intra-BMC rates and applicable discounts are described below. Generally, to qualify for destination entry rates (DBMC, DSCF, or DDU), mailers must enter their parcels at the destination BMC, SCF, or delivery unit postal facility that will process or deliver the parcels (see additional requirements in E652). Additional requirements for Parcel Post rates and discounts (other than destination entry rates) are set forth below.

a. Intra-BMC rates apply to all Parcel Post originating and destining in the service area of the same BMC or ASF. Intra-BMC rates also apply to Parcel Post originating and destining in the same state for Alaska and Hawaii and in the same territory for Puerto Rico. See Exhibit 1.3.

b. Inter-BMC rates for machinable parcels apply to all Parcel Post mail that weighs 35 pounds or less; is machinable; originates in the service area of a BMC/ASF, or in Alaska, Hawaii, or Puerto Rico, and destinates outside that area; and is not eligible for destination entry rates.

c. Inter-BMC rates for nonmachinable Parcel Post include the nonmachinable surcharge and apply to all inter-BMC/ASF Parcel Post mail that weighs more than 35 pounds or otherwise is nonmachinable as defined in 1.4; originates in the service area of a BMC/ASF, or in Alaska, Hawaii, or Puerto Rico, and destinates outside that area; and is not eligible for destination entry rates.

d. Parcel Post for which OBMC Presort, BMC Presort, and barcoded discounts are claimed, and parcel post which is mailed at a destination entry rate (DBMC, DSCF, DDU (E652)), must be part of a mailing of 50 or more Parcel Post rate pieces. Eligibility for one of those rates or discounts does not require a separate 50 qualifying pieces per rate or per discount. Eligibility for more than

[Page 37975]one of those rates or discounts in the same Parcel Post mailing is possible, provided there are a total of at least 50 pieces of mail qualifying for any or all Parcel Post rates in the mailing and all other preparation and eligibility requirements for the rates or discounts are met.

e. The bulk mail center (BMC) Presort per-piece discount applies to pieces of inter-BMC Parcel Post sorted to BMC destinations under L601 for machinable pieces and sorted to BMC and ASF destinations for nonmachinable pieces under L605. To qualify, machinable pieces must be placed in pallet boxes on pallets and nonmachinable pieces must be placed directly on pallets under M041 and M045. The mail must be entered at a postal facility that is not a BMC and be part of a mailing containing 50 or more Parcel Post rate pieces.

f. The origin bulk mail center presort (OBMC Presort) per-piece discount applies to pieces of inter-BMC Parcel Post sorted to BMC destinations under L601 for machinable pieces and sorted to BMC and ASF destinations for nonmachinable pieces under L605. To qualify, machinable pieces must be placed in pallet boxes on pallets and nonmachinable pieces must be placed directly on pallets under M041 and M045. The mail must be entered at a BMC listed in L601 and be part of a mailing containing 50 or more Parcel Post rate pieces.

g. The barcoded discount applies to Parcel Post machinable parcels (C050) that each bear a correct, readable barcode under C850 for the ZIP Code of the delivery address; are part of a mailing of 50 or more Parcel Post rate pieces; are not mailed at the DSCF or DDU rates; and if claiming the DBMC rates, are not entered at an ASF. An exception is that properly prepared machinable pieces of DBMC rate mail entered at the Phoenix, AZ, ASF may claim the barcoded discount because that facility uses barcode scanning equipment.

h. Pieces measuring over 108 inches but not more than 130 inches in combined length and girth, are mailable at the applicable oversized Parcel Post rate.

i. Pieces measuring over 84 inches, but not more than 108 inches in combined length and girth and weighing less than 15 pounds are subject to the rate equal to that of a 15-pound parcel for the zone to which the parcel is addressed.

Exhibit 1.3 BMC/ASF Service Areas

Renumber and insert former Exhibit E620.2.4 as Exhibit E630.1.3.1.4 Nonmachinable Surcharge

The nonmachinable surcharge applies only to the items listed in 1.4a through 1.4i if mailed at the Inter-BMC/ASF Parcel Post rates and no special handling fee is paid. The nonmachinable surcharge applies to items within these categories:

a. A parcel more than 34 inches long, 17 inches wide, 17 inches high, or weighing more than 35 pounds.

b. A parcel containing more than 24 ounces of liquid in glass containers, or 1 gallon or more of liquid in metal or plastic containers.

c. An insecurely wrapped or metal-banded parcel.

d. A can (paint, etc.), roll, or tube, or wooden or metal box.

e. A shrub or tree.

f. A perishable, such as eggs.

g. Books, printed matter, or business forms weighing more than 25 pounds.

h. A high-density parcel weighing more than 15 pounds and exerting more than 60 pounds per-square-foot pressure on its smallest side.

i. A film case weighing more than 5 pounds or with strap-type closures, except any film case the USPS authorizes to be entered as a machinable parcel under C050 and to be identified by the words ``Machinable in United States Postal Service Equipment,'' permanently attached as a nontransferable decal in the lower right corner of the case.

1.5 Fees

Renumber former E620.2.6 as E630.1.5 and revise to read as follows:]

Parcel Post mail is subject to these fees, as applicable:

a. The fee for mailing at destination BMC (DBMC), destination sectional center facility (DSCF), and destination delivery unit (DDU) Parcel Post rates must be paid once each 12-month period at each post office of mailing by or for any person or organization that mails at the destination entry rates, except as provided otherwise for plant- verified drop shipments. All destination entry rates are covered under the payment of a single annual fee. The fee may be paid in advance only for the next year and only during the last 30 days of the current service period. The fee charged is that which is in effect on the date of payment (R600).

b. The Parcel Post pickup fee must be paid every time pickup service is provided, subject to the corresponding standards in D010. 2.0 BOUND PRINTED MATTER

2.1 Description and Rate Categories

Renumber former E620.3.1 as E630.2.1 and revise to include new rate categories as follows:Bound Printed Matter is Standard Mail weighing at least 1 pound but not more than 15 pounds and meeting the standards in E611, E613, and E630. Bound Printed Matter rates are based on zones and on the weight of the piece. The rate categories are as follows:

a. Single-Piece Rate. The single-piece rate applies to Bound Printed Matter not mailed at the presorted rate or carrier route rate.

b. Presorted Rate. The presorted rate applies to Bound Printed Matter prepared in a mailing of at least 300 pieces, prepared and presorted as specified in M045 and M630.

c. Carrier Route Rate. The carrier route rate applies to Bound Printed Matter prepared in a mailing of at least 300 pieces presorted to carrier routes, prepared and presorted as specified in M045 and M630.

2.2 Characteristics

Renumber former E620.3.2 as E630.2.2.* * * * *

2.3 Combining Pieces

Renumber former E620.3.3 as E630.2.3.* * * * *

2.4 Enclosures

Renumber former E620.3.4 as E630.2.4.* * * * *

Add new 2.5 to specify barcoded discount standards as follows:2.5 Barcoded Discount

The barcoded discount applies to machinable parcels (C050) bearing a correct, readable barcode under C850 for the ZIP Code shown in the delivery address that are part of a mailing of at least 50 Bound Printed Matter pieces, and are mailed at the single-piece rates or, under the following conditions, mailed at the presorted rates. Except for 5-digit bedloaded bundles, presorted Bound Printed Matter that is prepared under the machinable parcel preparation standards in M045 and M630 is eligible for the barcoded discount. Bedloaded bundles of presorted Bound Printed Matter that are required to be prepared under the sortation standards for flats and irregular parcels are not eligible for barcoded discounts. Carrier route Bound Printed Matter is not eligible for the barcoded discount.

Renumber E630.3.1 as 2.6 and revise to delete references to E620 to read as follows:

[Page 37976]2.6 Preparation for Presorted Rates

Presorted Bound Printed Matter must meet the basic standards in 2.1 through 2.5 and the applicable preparation standards in M630. Mailings may contain nonidentical-weight pieces only if the correct postage is affixed to each piece or if the RCSC serving the post office of mailing has authorized payment of postage by permit imprint under P710, P720, or P730 or M630.8. Each mailing must contain 300 or more pieces of presorted Bound Printed Matter. Insurance, special handling, and COD services may be used, but selective use of these services for individual parcels must be approved by the RCSC.

Renumber former E630.3.2 as 2.7.2.7 Additional Standards for Carrier Route Rates

Carrier route Bound Printed Matter is subject to these additional standards:

a. Each mailing must contain 300 or more pieces sorted under M630 into groups of at least 10 pieces, 20 pounds, or 1,000 cubic inches each for the same carrier route, rural route, highway contract route, post office box section, or general delivery unit.

b. Residual pieces (not sorted as described in 2.7a) do not count toward the minimum specified in 2.7a, are ineligible for the carrier route Bound Printed matter rates, and must have postage paid at the appropriate presorted Bound Printed Matter rates. Residual pieces may be included in a carrier route Bound Printer Matter rate mailing and be endorsed ``Carrier Route Presort'' or ``CAR-RT SORT.'' The number of residual pieces to any single 5-digit ZIP Code area may not exceed 5% of the total qualifying carrier route pieces addressed to that 5-digit area. Residual pieces must be separated from the pieces that qualify for the carrier route rate and must be prepared under M630.

c. Subject to A930, the mailer must apply carrier route codes to mailings using CASS-certified software and the current USPS Carrier Route Information System (CRIS) scheme or another AIS product containing carrier route information. The carrier route information must be updated within 90 days before the mailing date.

Renumber former E620.4.0 as E630.3.0.3.0 SPECIAL STANDARD MAIL

Renumber former E620.4.1 as E630.3.1 and add rate categories as follows:3.1 Qualification

Special Standard Mail is Standard Mail matter meeting the standards in E611, E613, and those below. Special Standard Mail rates are based on the weight of the piece, without regard to zone. The rate categories are as follows:

a. Single-Piece Rate. The single-piece rate applies to Special Standard Mail not mailed at a 5-digit or BMC rate.

b. Presorted 5-Digit Rate. The 5-digit rate applies to Presorted Special Standard Mail mailings of at least 500 pieces and meeting the other requirements of 4.0 and that are prepared and presorted to 5- digit destination ZIP Codes as specified in M630 or M041 and M045.

c. Presorted BMC Rate. The BMC rate applies to Presorted Special Standard Mail mailings of at least 500 pieces and meeting the other requirements of 4.0 and that are prepared and presorted to destination bulk mail centers as specified in M630 or M041 and M045.

Renumber former E620.4.2 as E630.3.2.3.2 Qualified Items

* * * * *

Renumber former E620.4.3 as E630.3.3.3.3 Loose Enclosures

* * * * *

Renumber former E620.4.4 as E630.3.4.3.4 Enclosures in Books

* * * * *

Insert current E630.4.0. Amend 4.3 by revising the second sentence and add new E630.4.7 to read as follows:4.0 PRESORTED SPECIAL STANDARD MAIL * * * * *

4.3 One Presort Level

A Presorted Special Standard Mail rate mailing receives only one level of presort rate. The mailer may, however, prepare two separate mailings in order to use both levels of presort rates and claim them on the same postage statement. Pieces that do not qualify for a presort rate must be presented separately from any presorted rate mailings, but may be claimed on the same postage statement as a 5-digit rate and BMC presort rate mailing. * * * * *

4.7 Barcoded Discount

The barcoded discount applies to machinable parcels (C050) mailed at single-piece rates and Presorted Special Standard Mail BMC rates that bear a correct, readable barcode under C850 for the ZIP Code shown in the delivery address, and that are part of a mailing of at least 50 pieces of Special Standard Mail. The discount does not apply to pieces mailed at the Presorted Special Standard Mail 5-digit rates.

Renumber former E620.5.0 and 5.1 as E630.5.0 and E630.5.1 to read as follows:5.0 LIBRARY MAIL

5.1 Qualification

Library Mail is Standard Mail matter meeting the standards in E611, E613, and those below. Library Mail rates are based on the weight of the piece, without regard to zone. The basic rate category applies to all Library Mail.

Renumber former E620.5.2 through E620.5.7 as E630.5.2 through E630.5.7.Insert new 5.8 as follows:5.8 Barcoded Discount

The barcoded discount applies to machinable parcels (C050) of Library Mail bearing a correct, readable barcode under C850 for the ZIP Code shown in the delivery address and that are part of a mailing of at least 50 Library Mail pieces.

Insert new 6.0 to read as follows:6.0 BULK PARCEL POST

ReservedRevise the title of E640 and the first sentence of E640.1.1 to read as follows:E640 Automation Standard Mail (A) Rates

1.0 REGULAR AND NONPROFIT RATES

1.1 All Pieces

All pieces in an automation rate Regular or Nonprofit Standard Mail (A) mailing must: * * * * * * * *

E650 Destination Entry

* * * * *

E652 Parcel Post

1.0 BASIC STANDARDS

Amend 1.1 through 1.4 to add information on DSCF and DDU destination entry rates to read as follows:1.1 Definitions

Destination entry discounts apply to Parcel Post mailings prepared as specified in M041, M045, and M630 and addressed for delivery within the service area of a destination BMC (or auxiliary service facility), sectional center facility (SCF), or delivery unit (DU) where they are deposited by the mailer. For this standard, the following destination facility definitions apply:

a. A destination bulk mail center (DBMC) includes all bulk mail centers (BMCs) and auxiliary service facilities (ASFs) under L602, and designated sectional center facilities (SCFs) under 4.0.

b. A destination sectional center facility (DSCF) includes all facilities

[Page 37977]listed under L005. Mail that is prepared on pallets for 5-digit ZIP Codes listed in Exhibit 5.0 must be entered at the BMC shown in the exhibit instead of at the SCF serving the 5-digit ZIP Codes of the delivery addresses appearing on mailpieces unless an exception has been granted under 1.3e.

c. A destination delivery unit (DDU) is a facility that delivers to the addresses appearing on the deposited pieces in a destination entry rate Parcel Post mailing. Refer to the Drop Shipment Product maintained by the National Customer Support Center (NCSC) (see G043) to determine the location of a 5-digit delivery facility. There is a charge for the Drop Shipment Product. When the Drop Shipment Product shows that mail for a single 5-digit ZIP Code area is delivered out of more than one postal facility, use the facility from which the majority of city carrier routes are delivered as the facility at which the DDU mail must be entered unless the 5-digit ZIP Code is listed in Exhibit 6.0 or Exhibit 7.0.

1.2 General

A destination entry mailing is a Parcel Post mailing that:

a. May be bedloaded, on pallets, or in pallet boxes on pallets, sacks, or other authorized containers as specified in 2.0 through 5.0, depending on the facility at which the pieces are deposited and;

b. Is not plant-loaded.

1.3 DBMC, DSCF, and DDU Rates

For DBMC, DSCF, or DDU rates, pieces must meet the applicable standards in 1.0 through 5.0 and meet the following criteria:

a. Be part of a single mailing of 50 or more pieces that are eligible for and claimed at any Parcel Post rate or rates.

b. Be deposited at a destination BMC (DBMC) or auxiliary service facility, or other equivalent facility; destination sectional center (DSCF); or destination delivery unit (DDU) as applicable for the rate claimed and as specified by the USPS.

c. Be addressed for delivery within the ZIP Code ranges that the applicable entry facility serves.

d. For destination BMC (DBMC) rates, be part of a Parcel Post mailing that is deposited at a BMC or ASF under L602 or other designated facility under 4.0, addressed for delivery within the ZIP Code range of that facility and prepared in accordance with M041 and M045 or M630.

e. For destination sectional center facility (DSCF) rates, be part of a Parcel Post mailing deposited at a designated SCF facility under L005 (or at a BMC under Exhibit 5.0); addressed for delivery within the ZIP Code service area of that SCF facility under L005 and prepared in accordance with M041 and M045, and/or M630. For 5-digit ZIP Code areas listed under Exhibit 5.0, mail prepared on pallets must be entered at the corresponding BMC facility shown in that Exhibit (not at the SCF) unless an exception is requested 15 days in advance of the mailing in writing and granted by the Area Manager, Operations Support having jurisdiction over the BMC and SCF. Exceptions, if granted, will be for a limited time. Mailers must not prepare mail on pallets (including pallet boxes on pallets) for the DSCF rate if the 5-digit delivery facility is unable to handle pallets. Refer to the Drop Shipment Product maintained by the National Customer Support Center (NCSC) (see G043) to determine which 5-digit delivery facilities can handle pallets (including pallet boxes on pallets). There is a charge for the Drop Shipment Product. When the Drop Shipment Product shows that mail for a single 5-digit ZIP Code area is delivered out of more than one postal facility, use the facility where the majority of city carrier routes are located for purposes of determining if the delivery facility can handle pallets, unless the 5-digit ZIP Code is listed in Exhibit 6.0 or Exhibit 7.0. For ZIP Codes in Exhibits 6.0 and 7.0 use the name of the facility associated with the 5-digit ZIP Code on the respective exhibit along with the Drop Shipment Product to determine if pallets may be prepared for one of those 5-digit areas.

f. For destination delivery unit (DDU) rates, be part of a Parcel Post mailing prepared in accordance with M041 and M045 and/or M630 and deposited at a designated destination delivery unit that delivers parcels to the addresses appearing on the deposited pieces. There is no required minimum number of pieces that must be deposited for the DDU rate and no specific preparation requirements; however, they must be part of a mailing of at least 50 Parcel Post rate pieces and must be separated by 5-digit ZIP Codes. Refer to the Drop Shipment Product maintained by the National Customer Support Center (NCSC) (see G043) to determine the location of the 5-digit delivery facility and whether it can handle pallets (including pallet boxes on pallets). There is a charge for the Drop Shipment Product. When the Drop Shipment Product shows that mail for a single 5-digit ZIP Code area is delivered out of more than one postal facility, use the facility from which the majority of city carrier routes are delivered as the facility at which the DDU mail must be entered and to determine whether that facility can handle pallets, unless the 5-digit ZIP Code is listed in Exhibit 6.0 or Exhibit 7.0. For ZIP Codes in Exhibits 6.0 and 7.0 use the name of the facility associated with the 5-digit ZIP Code on the respective exhibit as the facility at which DDU mail must be entered for that 5-digit ZIP Code. This facility name should be used along with the Drop Shipment Product to determine if that facility can handle pallets. If a DDU facility cannot handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver will have to unload the pallets into a container specified by the delivery unit.

1.4 Postage Payment

Postage payment for DBMC, DSCF, and DDU rate mail is subject to the same standards that apply generally to Standard Mail (B). Except for plant-verified drop shipments (see P750) or metered mail drop shipment (see D072), the mailer must have a meter license or permit imprint authorization at the destination facility parent post office for mailings deposited for entry at a DBMC or ASF, at a destination sectional center facility, or at the parent post office of a destination delivery unit. Postage and fees (under E630) are paid to the post office that verifies the mailings. The mailer must ensure that Form 8125 accompanies all plant-verified drop shipments.

Rename 1.5 to read as follows:1.5 BMC as Agent

The DBMC may act as acceptance agent only for its parent post office (see Exhibit 1.5) and only if authorized by Form 4410 for each mailer depositing DBMC entry rate mail.

Delete 1.6.2.0 PREPARATION

Amend 2.0 to include new destination entry rates as follows:2.1 Bedloaded Parcels

Revise 2.1 to limit bedloaded destination entry mailings to BMCs and DDUs as follows:A mailer may present bedloaded DBMC parcels if the mailer's vehicle has a road-to-bed height of 50 (<plus-minus>2) inches. If applicable, the mail to be entered at different destinations must be separated to prevent mixing of mailings for deposit at different destinations. DBMC rate mailings may be bedloaded for deposit at BMCs/ASFs, and DDU rate mailings may be bedloaded for deposit at DDUs. Refer to the Drop Shipment Product available from the National Customer Support Center (NCSC) (see G043) to determine dock requirements

[Page 37978]for a DDU facility. (There is a charge for this information.)

2.2 Containers

Reorganize and revise 2.2 to include DSCF and DDU mailings and delete use of BMC over-the-road containers for the DBMC rate as follows:DBMC (if not bedloaded), DDU rate mailings (if not bedloaded), and all DSCF mailings must be prepared as follows:

a. Machinable parcels for which a DBMC, DSCF, or DDU rate is claimed must be sacked under M630 or prepared on pallets under M041 and M045.

b. For DBMC rate mail, nonmachinable parcels that each weigh 35 pounds or less must be sacked under M630 if the parcels do not contain perishables and the size of the parcels allows a sack to hold at least two pieces. DBMC rate nonmachinable parcels that cannot be sacked in this manner or that weigh more than 35 pounds must be transported as outside (unsacked) pieces. If authorized in advance by the USPS, DBMC rate nonmachinable parcels may be palletized.

c. DSCF rate mail, if sacked under M630, must contain at least 7 pieces per sack or, if the sack is overflow from a 5-digit sack that contains at least 7 pieces it may contain less. DSCF rate mail, if sacked under M045 as overflow from a 5-digit pallet that meets the applicable pallet minimum, may contain any number of pieces. Machinable and nonmachinable pieces may be included in the same sack.

d. For the DSCF rate, 5-digit sacks may be bedloaded or they may be placed on SCF pallets that are labeled and otherwise prepared under M045.

e. For DSCF rate and DDU rate mail, nonmachinable parcels may be palletized (including pallet boxes on pallets). Nonmachinable parcels may be combined with machinable parcels on 5-digit pallets (including pallet boxes on pallets) claimed at DSCF or DDU rates under M041 and M045.

f. For DDU rate mail, there are no minimums for sacks, pallets, or pallet boxes on pallets. DDU rate mail must be separated by 5-digit ZIP Code (even if bedloaded) and, if placed in sacks or on pallets (including pallet boxes on pallets), it must be properly labeled to the 5-digit ZIP Code. Machinable and nonmachinable pieces may be included in the same sack or on the same pallet (including pallet boxes). 3.0 DEPOSIT

3.1 Freight

Drop shipments are freight until deposited and accepted as mail at the destination facility. The mailer may request use of a numbered PVDS band seal to secure mailer vehicles transporting plant-verified drop shipments.

3.2 Presentation

Revise to include requirements for DSCF and DDU destination entry mailings as follows:Destination entry rate mailings must be verified under a plant- verified drop shipment authorization by a detached mail unit (DMU) in the mailer's plant or at the origin post office business mail entry unit (BMEU) serving the mailer's plant. They also may be deposited for verification at a business mail entry unit located at a destination BMC, destination sectional center facility, or other designated destination postal facility. Only plant-verified drop shipments may be deposited at a destination delivery unit not co-located with a post office or other postal facility having a business mail entry unit. When presented to the USPS, destination entry mailings must meet the following requirements:

a. Separation by zone for DBMC rate mailings is required only for permit imprint mailings of identical-weight pieces that are not mailed using a postage payment system under P710, P720, or P730, or not mailed under M630.8.0.

b. Each mailing must be separated from other mailings, and destination entry rate mailings for deposit at one destination postal facility must be separated from mailings for deposit at other facilities.

c. Mail must be separated from freight transported on the same vehicle.

d. Each piece of DBMC, DSCF, or DDU rate Parcel Post must be marked as specified in M012 and M630.

e. The mailer must ensure that Form 8125 accompanies all plant- verified drop shipments.

f. If Periodicals mail is on the same vehicle as Standard Mail (B) the Periodicals mail should be loaded in the tail of the vehicle.

Rename the title of 3.3 to read as follows:3.3 BMC as Agent

The DBMC may verify and accept mail if authorized by Form 4410 to act as agent for the parent post office where the mailer's account or license is held.

3.4 Appointments

Revise 3.4 to change and update appointment procedures as follows:a. Except for local mailers under 3.5 and mailings of perishable commodities, appointments for deposit of destination entry rate mail at BMCs, ASFs, and SCFs must be scheduled through the appropriate appointment control center at least a day in advance. Same day appointments may be granted by a control center on the basis of a telephone request. All appointments for BMC loads must be scheduled by the appropriate BMC control center. Appointments for SCFs and ASFs must be scheduled through the appropriate district control center. Appointments may be made up to thirty (30) calendar days prior to a desired appointment date. Mailers must comply with the scheduled mail deposit time and location. The mailer must cancel any appointment by notifying the appropriate control center at least a day in advance of a scheduled appointment time.

b. Electronic appointments may be made by mailers/agents using a USPS-issued computer log-on ID. Electronic appointments or cancellations must be made at least 12 hours prior to the desired time and date. All information required by the USPS appointment system regarding a mailing must be furnished.

c. For deposit of DDU mailings, an appointment must be made by contacting the DDU at least 24 hours in advance. If the appointment must be canceled, a mailer must notify the DDU at least a day in advance of a scheduled appointment. Mailers desiring electronic confirmation of DDU mail entry also must schedule the appointment through the district control center. Recurring (standing) appointments will be allowed if shipment frequency is weekly or more often.

d. When Periodicals are transported together with Standard Mail (A) or (B) as a mixed load (E250), an appointment must be obtained for deposit at a destination entry facility. * * * * *

3.7 Deposit Conditions

Revise 3.7a to clarify that rescheduling is permitted for refused mailings as follows:Deposit of mail also is subject to these conditions:

a. Destination facilities may refuse mailings that are unscheduled or late (i.e., if vehicles arrive more than 2 hours after the scheduled appointment at ASFs, BMCs, or SCFs and more than 20 minutes late at delivery units). If a mailing is refused, a mailer is permitted to make a new appointment. * * * * *

[Page 37979]3.8 Vehicle Unloading

Revise 3.8 to include DSCF and DDU rate mail as follows:Unloading of destination entry mailings is subject to these conditions:

a. Properly prepared containerized loads (e.g., pallets) are unloaded by the USPS at BMCs, ASFs, and SCFs. The USPS does not unload or permit the mailer (or mailer agent) to unload palletized loads that are unstable or severely leaning or that have otherwise not maintained their integrity in transit.

b. The driver must unload bedloaded shipments within 8 hours of arrival at BMCs, ASFs, and SCFs. Combination containerized and bedloaded drop shipment mailings are classified as bedloaded shipments for unload times. The USPS may assist in unloading.

c. At delivery units, the driver must unload all mail, whether bedloaded, sacked, or palletized (including pallet boxes on pallets) within 1 hour of arrival. If pallets (including pallet boxes on pallets) are stacked, the driver is required to unload, unstack, and unstrap them. If a DDU facility cannot handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver must unload the pallets into a container specified by the delivery unit. The driver may be required to place bedloaded pieces in containers provided by the delivery unit in order to maintain separation by 5-digit ZIP Codes or to place containerized mail so as to maintain the separation of 5-digit ZIP Codes.

d. When driver unloading is required, the driver or assistant must stay with and continue to unload the vehicle once at the dock.

e. The driver must remove the vehicle from USPS property after unloading. The driver and assistant are not permitted in USPS facilities except the dock and designated driver rest area.

3.9 Charges

Revise 3.9 to include all destination rate mailings as follows:The USPS is not responsible for demurrage or detention charges incurred by a mailer who presents destination rate mailings.

3.10 Appeals

Mailers who believe that they are denied equitable treatment may appeal to the manager, customer service (district), responsible for the destination postal facility.

3.11 Documentation

Revise 3.11 to include DSCF and DDU mailings as follows:A postage statement must accompany each destination entry rate mailing. Any other documentation must be submitted as required by the standards for the rate claimed or the postage payment method used. * * * * *

Add 5.0 as follows to provide for deposit of some DSCF mail at a BMC:5.0 DSCF MAIL ENTERED AT A DESIGNATED BMC

DSCF rate mail prepared on pallets (including pallet boxes on pallets) that is for a 5-digit ZIP Code listed in Exhibit 5.0 must be entered at the corresponding BMC facility listed on that exhibit instead of at the DSCF unless an exception has been granted under 1.3e. Sacked DSCF rate mail for the 5-digit ZIP Codes in Exhibit 5.0 must be entered at the DSCF.

Exhibit E652.5.0, BMC Deposit of DSCF Rate Pallets

BMC

Destination ZIP code

ATLANTA........................... 30006-08, 30, 32-37, 60-69, 71, 80- 86, 88-90.

30305-07, 19, 24, 28-29, 38, 40-42, 45-46, 59, 62-63, 66, 76.

31101.

39901.

CHICAGO........................... 53140-44.

53401-08.

60016-17, 19, 25, 53, 56, 68, 70, 76- 77.

60103, 05, 07, 20-23, 26, 31, 53-54, 60-65, 68, 76, 79, 87, 89, 92-95. 60301-04, 06-99.

60409, 11-12, 15, 22, 25, 30-33, 35- 36, 38-41, 46, 53-58, 62, 64-65, 67, 73, 77-78, 82, 90.

60504-07, 15-17, 21-23, 25-26, 40, 42, 63-64, 66-68, 98.

60601, 05, 08-60, 67, 81, 90, 93-94. 60714.

60803-05.

CINCINNATI........................ None.

DALLAS............................ None.

DENVER............................ 69190.

80001-19, 32, 40-42, 44, 46-47. 80110-15, 20-29, 50-56, 60-63, 65- 67.

80215, 21-22, 24, 26-29, 31-33, 35- 37, 51.

80401-19.

80521-28, 53-54.

80631-39.

DES MOINES........................ 50000-50399, 50900-50999.

DETROIT........................... 48007, 15, 21, 25-26, 34,37, 42-46, 66-73, 75-76, 80-84, 86, 89-93,98- 99.

48103-04, 06-09, 11-13, 20-28, 30, 34, 41, 50-54, 61-62, 70, 74, 80, 82-88, 92, 95, 97-98.

48192, 95, 97-98.

48204, 20-21, 27-28, 35.

48310-18, 40-43, 97.

GREENSBORO........................ 27101-02.

27408-10.

27514-16.

27701.

[Page 37980]

JACKSONVILLE...................... 31520-25, 27.

32065, 67, 73, 84-86, 91-92, 95.

32173-76.

32205, 07, 10-11, 16, 20-22, 24-25, 30, 36, 38-39, 44-45, 47, 54, 77. 32901-12, 19, 22-32, 34-37, 40-41, 51-56, 58-69, 76-78.

33427-29, 31-34, 60-67, 81, 86-87, 96-98.

33755-67, 70-79.

33880-85.

34101-06, 08-10, 12-14, 16-17, 19- 20.

34470-82.

34945-51, 54, 79-82, 94-97.

KANSAS CITY....................... 64013-15, 50-51, 55-56, 58.

64116-19, 51, 53-54, 57-61, 63-64, 67, 88, 90.

66002, 44-49.

LOS ANGELES....................... 90220-23, 40-42, 80.

MEMPHIS........................... 38018, 88.

38115, 18, 25, 33-35, 38-39, 41, 75, 81, 83-84, 88, 93, 95.

38614.

38732.

MINNEAPOLIS/ST. PAUL.............. None.

NEW JERSEY........................ None.

PHILADELPHIA...................... 19001-04, 06-10, 12-18, 20-23, 25- 26, 28-41, 43-44, 46-50, 52-53, 61, 63-67, 70, 72-76, 78-91, 93-96.

19111, 14-16, 19-20, 24, 28, 34-37, 40, 44, 49, 52, 54-55, 60.

PITTSBURGH........................ None.

ST. LOUIS......................... 62002, 40.

62220-23, 26.

63005-06, 11, 17, 21-22, 24, 31-34, 42-45, 74.

63104-41, 43-44, 46-47, 51, 57-58. 63301-04.

SAN FRANCISCO..................... 93921-23.

94002-03, 10-12, 22-28, 30, 35, 39- 43, 59, 61-65, 70, 86-89.

94401-99.

94504, 06, 08, 11-24, 26-29, 33, 35- 46, 48, 55-56, 58-63, 67, 70-71, 73- 81, 83-85, 89-99.

SEATTLE........................... 98002-04, 23, 31, 35, 63-64, 92-93. SPRINGFIELD....................... None.

WASHINGTON........................ None.

6.0 DELIVERY FACILITY EXCEPTIONS TO THE ``MAJORITY OF CITY CARRIERS'' RULE

For ZIP Codes in Exhibit 6.0 use the name of the facility associated with the 5-digit ZIP Code in that exhibit as the facility at which DDU rate mail for that 5-digit ZIP Code must be entered, and for both DDU and DSCF mail, to determine whether that 5-digit facility can handle pallets. See 1.1 and 1.3.

Exhibit E652.6.0, Delivery Facility Exceptions to the ``Majority of City Carriers'' Rule

This listing identifies 5-digit ZIP Codes that are exceptions to the ``majority of city carriers rule'' which is used to determine the Standard (B) parcel facility for a 5-digit ZIP Code in instances of where a ZIP Code is delivered by multiple facilities. The name of the primary facility for parcel delivery is listed beside each 5-digit ZIP Code. Additional information about the facility including drop ship address and whether the facility can handle a pallet is included in the Drop Shipment Product. At a future date this list will be available in the Drop Shipment Product.

ZIP Code

Facility name

ALABAMA:

36130................................... Montgomery.

ALASKA:

99701................................... Main Office.

99709................................... Main Office.

99801................................... Mendenhall.

CALIFORNIA:

91941................................... La Mesa.

92056................................... Oceanside.

92122................................... Universal City Annex. 92623................................... Harvest Station.

92693................................... San Juan Capistrano.

94087................................... Sunnyvale.

94304................................... Palo Alto.

FLORIDA:

34743................................... Buena Ventura Lakes.

34747................................... Celebration.

GEORGIA:

30811................................... Keysville.

31704................................... Albany.

IOWA:

52401................................... Cedar Rapids.

KANSAS:

66044................................... Jayhawk.

66226................................... Monticello.

66619................................... Hicrest.

KENTUCKY:

40022................................... Simpsonville.

40763................................... Williamsburg.

41730................................... Hyden.

42338................................... Hartford.

LOUISIANA:

70503................................... Oil Center.

71201................................... Monroe.

MAINE:

04043................................... Kennebunk.

04345................................... Gardiner.

04402................................... Eastern Maine Carrier Annex. 04769................................... Presque Isle.

04841................................... Rockland.

MASSACHUSETTS:

02584................................... Nantucket.

MINNESOTA:

55369................................... Maple Grove.

55378................................... Burnsville.

56387................................... Waite Park.

MISSOURI:

64113................................... Country Club.

MONTANA:

59106................................... Billings.

NEW HAMPSHIRE:

03224................................... Tilton.

NEW YORK:

14304................................... Niagara Falls.

NORTH CAROLINA:

[Page 37981]

27706................................... Durham.

28018................................... Forest City.

28309................................... Lafayette.

OHIO:

45013................................... Hamilton.

45459................................... Centerville.

PENNSYLVANIA:

18073................................... Red Hill.

18241................................... Nuremberg.

19026................................... Pilgrim Gardens.

19136................................... Holmesburg Carrier Annex. RHODE ISLAND:

02842................................... Middleton.

SOUTH DAKOTA:

57402................................... Aberdeen.

TENNESSEE:

37224................................... South.

TEXAS:

75501................................... Texarkana.

75903................................... Lufkin.

VIRGINIA:

22320................................... Alexandria.

22405................................... Fredericksburg.

23433................................... Driver.

23521................................... LC Page.

WASHINGTON:

98203................................... Claremont.

98324................................... Carbonado.

98375................................... South Hill Annex.

98387................................... Spanaway.

98687................................... East Vancouver DDU.

WEST VIRGINIA:

25801................................... Beckley.

26302................................... Eastpointe.

26330................................... Eastpointe.

WISCONSIN:

53703................................... Madison.

7.0 DELIVERY FACILITIES DIFFERENT THAN THOSE IN THE DROP SHIPMENT PRODUCT

For ZIP Codes in Exhibit 7.0 use the name of the facility associated with the 5-digit ZIP Code in that exhibit as the facility at which DDU rate mail for that 5-digit ZIP Code must be entered, and for both DDU and DSCF mail, to determine whether that 5-digit facility can handle pallets. See 1.1 and 1.3.

Exhibit E652.7.0, Delivery Facilities Different than those in the Drop Shipment Product

Parcel Post mailings for the ZIP Codes shown must be deposited at the facilities listed in order to qualify for destination delivery unit rates. The listing identifies 5-digit ZIP codes and facilities that are different from the ones indicated in the Drop Shipment Product for letters and flats. At a future date this information will be available in the Drop Shipment Product.

ZIP codes served

Destination delivery unit location

ALASKA:

99702......................... Fairbanks--5400 Mail Trail,

Fairbanks, AK 99709-9998.

CALIFORNIA:

90223......................... Compton--701 S. Santa Fe Avenue,

Compton, CA 90221-9998.

92677......................... Laguna Niguel--29911 Niguel Road, Laguna Beach, CA 92607-9998.

92684......................... Westminster--15080 Goldenwest Circle, Westminister, CA 92685-

9998.

FLORIDA:

34278......................... Manasota P&DC--850 Tallevast Road, Sarasota, Florida 34243-3249. MASSACHUSETTS:

02113, 14, 29, 99............. Boston P&DC--25 Dorchester Avenue, Boston, MA 02205-9998.

02215.

Incoming Mail Center--307 Beacham Street,

02144-45...................... Chelsea, MA 02150-9998.

MISSISSIPPI:

39563............................. Pascagoula--911 Jackson Avenue, Pascagoula, MS 39567-9998.

MINNESOTA:

55102......................... Saint Paul--180 Kellogg Blvd. E., Saint Paul, MN 55101-9997.

MONTANA:

59401, 04-05, 14.............. Great Falls Annex--1409 14th Street SW, Great Falls, MT 59404-9998.

NEW YORK:

10001, 18, 26, 27, 29, 32-35, New York City--James A. Farley 40, 43, 60, 81, 87, 90, 95, Building, 441 8th Avenue, New York, 98, 99.

NY 10001-9998.

10115-23, 99.

10017, 21, 22, 28, 30, 31, 37, Bronx--East Side Parcel Post Annex, 39, 44, 55.

500 East 132nd Street, Bronx, NY 10454-4619.

10128, 51-55, 62, 65-78.

10002-07, 09-14, 16, 19, 20, New York--Central Parcel Post 23-25, 36, 38, 41.

Facility, 341 9th Avenue, New York, NY 10199-9991.

10103-07, 10, 49, 58.

10210, 56-60, 65, 70, 71, 79,

80-82, 85, 86, 92

10008, 15, 45-48, 80.......... New York--Church Street Station, 90 Church Street, New York, NY 10007- 9998.

10203, 49, 61, 67.

10111, 12, 29, 85............. New York--Times Square Station, 340 W. 42nd Street, New York, NY 10036- 9998.

10461......................... Soundview--1687 Gleason Avenue, Bronx, NY 10472-9998.

10463......................... Mott Haven--517 E. 139th Street,

Bronx, NY 10454-9998.

14901......................... Elmira P&DC--1580 Sullivan Street, Elmira, NY 14901-9997.

PENNSYLVANIA:

15131-35...................... McKeesport--850 Walnut Street, McKeesport, PA 15134.

15122......................... West Mifflin--500 Regis Avenue, Pittsburgh, PA 15236-9998.

15201......................... Bloomfield--5182 Liberty Avenue,

Pittsburgh, PA 15224-9998.

15223......................... Glenshaw--1541 Butler Park Road,

Pittsburgh, PA 15116-9998.

15225......................... Woods Run Annex--2840 New Beaver

Avenue, Pittsburgh, PA 15233-9998.

15240......................... Oakland--347 S. Bouquet Street, Pittsburgh, PA 15213-9998.

15244......................... Greentree--770 Trumbull Drive, Pittsburgh, PA 15220.

17735......................... Canton--55 Troy Street, Canton, PA 17724-9998.

[Page 37982]E670 Nonprofit Standard Mail

* * * * * 9.0 MAILING WHILE APPLICATION PENDING * * * * *

9.2 Postage Record

Amend 9.2 by removing ``or Single-Piece Standard Mail'' in the last sentence to read as follows:While an application is pending, postage must be paid at the applicable First-Class Mail or Priority Mail rates, or at the following Standard Mail (A) rates: regular Enhanced Carrier Route; regular automation, or regular Presorted. The USPS records the difference between postage paid at the regular Standard Mail (A) rates (Enhanced Carrier Route, automation and Presorted) and the postage that would have been paid at the Nonprofit Standard Mail rates. No record is kept if postage is paid at First-Class Mail or Priority Mail rates.

9.3 Refund

Amend 9.3b by removing ``or Single-Piece Standard Mail'' to read as follows:If an authorization to mail at Nonprofit Standard Mail rates is issued, the mailer may be refunded the postage paid at that office in excess of the Nonprofit Standard Mail rate since the effective date of the authorization. No refund is made: * * * * *

b. If postage was paid at First-Class Mail or Priority Mail rates. * * * * *

F Forwarding and Related Services

F000 Basic Services

F010 Basic Information

* * * * * 3.0 DIRECTORY SERVICE

Amend 3.0d by removing ``or Single-Piece Standard Mail'' to read as follows:USPS letter carrier offices give directory service to the types of mail listed below that have an insufficient address or cannot be delivered at the address given (the USPS does not compile a directory of any kind): * * * * *

d. Parcels mailed at any Standard Mail (B) rate or endorsed by the mailer. * * * * * 5.0 CLASS TREATMENT FOR ANCILLARY SERVICES

5.1 Priority Mail and First-Class Mail

Insert new sentence before the chart in 5.1 to read as follows:Undeliverable Priority Mail and First-Class Mail (including stamped cards and postcards) are treated as described in the chart below. During months 13 through 18, pieces are returned to the sender with an on-piece address correction at no charge. Forwarding address information is not provided for mail with the exceptional address format. The Priority Mail portion of a Priority Mail drop shipment receives the forwarding, return, and address correction services described in this chart. The mail enclosed in a Priority Mail drop shipment receives the services appropriate for its class. First-Class Mail and Priority Mail that bear Standard Mail (A) markings and endorsements as permitted in E620.1.3 and P100, receive forwarding, return, and address correction services for Standard Mail (A) under 5.3. * * * * *

5.2 Periodicals

Amend 5.2e and 5.2g to read as follows:Undeliverable Periodicals publications (including publications pending Periodicals authorization) are treated as described in the chart below and under these conditions: * * * * *

e. The publisher may request the return of copies of undelivered Periodicals publications by printing the endorsement ``Address Service Requested'' on the envelopes or wrappers, or on one of the outside covers of unwrapped copies, immediately preceded by the sender's name, address, and ZIP+4 or 5-digit ZIP Code. The per piece rate charged for return is the appropriate single-piece First-Class Mail or Priority Mail rate as applicable for the weight of the piece. When the address correction is provided incidental to the return of the piece, there is no charge for the correction. This endorsement obligates the publisher to pay return postage. * * * * *

g. Periodicals matter is forwarded only to domestic addresses.

Amend the ``Address Service Requested'' portion of 5.2g (chart) to read as follows:

Mailer endorsement

USPS action on UAA pieces

``Address Service Requested'' First 60 days: piece forwarded; no <SUP>1.

charge.

After 60-day period, or if undeliverable: piece returned with address correction or reason for nondelivery attached; single-piece First-Class or Priority

Mail rate as applicable for weight of piece charged.

``Forwarding Service

Not available for Periodicals.

Requested''.

``Return Service Requested''. Not available for Periodicals.

``Change Service Requested''. Not available for Periodicals.

No endorsement <SUP>1............. First 60 days: piece forwarded; no charge.

After 60-day period, or if undeliverable: separate address correction or reason for nondelivery provided; address correction fee charged; piece disposed of by USPS.

<SUP>1 Valid for all pieces, including Address Change Service (ACS)

participating pieces.

5.3 Standard Mail (A)

Amend 5.3 by deleting 5.3a and renumbering 5.3b through 5.3i as 5.3a through 5.3h, respectively. Revise renumbered 5.3a, 5.3b, and 5.3f through 5.3h to read as follows:Undeliverable Standard Mail (A) is treated as described in the chart below and under these conditions:

a. Mail that qualifies for a single-piece Special Standard or Library Mail Standard Mail (B) rate under the applicable standards is forwarded and returned at that rate, if the mailer's endorsement includes the name of the applicable Standard Mail (B) rate.

b. Mail that qualifies for Shipper Paid Forwarding (F020) under the applicable standards is forwarded at, and (if necessary) returned at the single-piece First-Class or Priority Mail rate as applicable for the weight of the piece. * * * * *

f. The weighted fee is the appropriate single-piece First-Class or Priority Mail rate, as applicable for the weight of the piece, multiplied by 2.472 and rounded

[Page 37983]up to the next whole cent (if the computation yields a fraction of a cent). The weighted fee is computed (and rounded if necessary) for each piece individually. Neither the applicable postage, the factor, nor any necessary rounding is applied cumulatively to multiple pieces. The fee is charged when an unforwardable or undeliverable piece is returned to the sender and the piece is endorsed ``Address Service Requested'' or ``Forwarding Service Requested.'' These endorsements obligate the sender to pay the weighted fee on all returned pieces.

g. Mail that qualifies for Bulk Parcel Return Service (BPRS) under the applicable standards in S924 is returned at the BPRS per piece fee if the mailer uses one of the endorsements that includes ``--BPRS.''

Mailer endorsement

USPS action on UAA pieces

``Return Service Requested-- Piece returned with new address or reason BPRS''.

for nondelivery attached; only the Bulk Parcel Return Service fee charged (address correction fee not charged). ``Address Service Requested-- Months 1 through 12: piece forwarded; no BPRS''.

charge to addressee; separate ACS notice of new address provided; ACS address

correction fee and postage at single- piece First-Class or Priority Mail rate as applicable for weight of piece charged via ACS participant code. Months 13 through 18: piece returned with new address attached; only the Bulk Parcel Return Service fee charged (address correction fee not charged). After Month 18, or if undeliverable: piece returned with reason for

nondelivery attached; only Bulk Parcel Return Service fee charged (address correction fee not charged).

h. Standard Mail (A) is forwarded only to domestic addresses.

Mailer endorsement

USPS action on UAA pieces

``Address Service Requested'' Months 1 through 12: piece forwarded; no <SUP>1.

charge; separate notice of new address provided; address correction fee

charged.

Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction fee not charged).

After month 18, or if undeliverable: piece returned with reason for

nondelivery attached; only weighted fee charged (address correction fee not charged).

``Forwarding Service

Months 1 through 12: piece forwarded; no Requested''.

charge.

Months 13 through 18: piece returned with new address attached; only weighted fee charged (address correction fee not charged).

After month 18, or if undeliverable: piece returned with reason for

nondelivery attached; only weighted fee charged (address correction fee not charged).

``Return Service Requested''. Piece returned with new address or reason for nondelivery attached; only return postage at single-piece First-Class or Priority Mail rate as applicable for

weight of piece charged (address

correction fee not charged).

``Change Service Requested'' Separate notice of new address or reason <SUP>1.

for nondelivery provided; in either case, address correction fee charged; piece disposed of by USPS.

No endorsement............... Piece disposed of by USPS.

<SUP>1 Valid for all pieces, including Address Change Service (ACS)

participating pieces.

* * * * * 6.0 ENCLOSURES AND ATTACHMENTS

Amend the first sentences of 6.1 and 6.2 to read as follows:6.1 Periodicals

Undeliverable Periodicals publications (including publications pending Periodicals authorization) with a nonincidental First-Class Mail attachment or enclosure are returned at the single-piece First- Class Mail or Priority Mail rate as applicable for the weight of the piece. The weight of the attachment or enclosure is not included when computing the charges for return of the mailpiece. Undeliverable Periodicals publications (including publications pending Periodicals authorization) with an incidental First-Class Mail attachment or enclosure are treated as dead mail unless endorsed ``Address Service Requested.''

6.2 Standard Mail (A)

Undeliverable, unendorsed Standard Mail (A) with a nonincidental First-Class Mail attachment or enclosure is returned at the single- piece First-Class Mail or Priority Mail rate as applicable for the weight of the piece. The weight of the First-Class Mail attachment or enclosure is not included when computing the charges for return of the mailpiece. Undeliverable, unendorsed Standard Mail (A) with an incidental First-Class Mail attachment or enclosure is treated as dead mail. * * * * * 8.0 DEAD MAIL

8.1 Basic Information

Amend 8.1 to read as follows:Dead mail is matter deposited in the mail that is or becomes undeliverable and cannot be returned to the sender from the last office of address. Every reasonable effort is made to match articles found loose in the mail with the envelope or wrapper from which lost and to return or forward the articles.

a. Nonmail matter (e.g., wallets and bank deposits) found in collection boxes or at other points within USPS jurisdiction is returned postage due at the single-piece First-Class Mail or Priority Mail rate for keys and identification devices that is applicable based on the weight of the matter. * * * * *

F020 Forwarding

* * * * * 2.0 FORWARDABLE MAIL * * * * *

2.3 Discontinued Post Office

Amend 2.3 by removing ``and all Single-Piece Standard Mail'' to read as follows:All Express Mail, First-Class Mail, Periodicals, and Standard Mail (B) addressed to a discontinued post office may be forwarded without added charge

[Page 37984]to a post office that the addressee designates as more convenient than the office to which the USPS ordered the mail sent.

2.4 Rural Delivery

Amend 2.4 by removing ``and all Single-Piece Standard Mail'' to read as follows:When rural delivery service is established or changed, a customer of any office receiving mail from the rural carrier of another office may have all Express Mail, First-Class Mail, Periodicals, and Standard Mail (B) forwarded to the latter office for delivery by the rural carrier without added charge, if the customer files a written request with the postmaster at the former office. * * * * *

2.6 Mail for Military Personnel

Amend the first sentence of 2.6 by removing ``and all Single-Piece Standard Mail'' to read as follows:All Express Mail, First-Class Mail, Periodicals, and Standard Mail (B) addressed to persons in the U.S. Armed Forces (including civilian employees) serving where U.S. mail service operates is forwarded at no added charge when the change of address is caused by official orders. * * * 3.0 POSTAGE FOR FORWARDING * * * * *

3.5 Standard Mail (A)

Amend the second sentence of 3.5 to read as follows:* * * Shipper Paid Forwarding, used in conjunction with Address Change Service (F030), provides mailers of Standard Mail (A) machinable parcels an option of paying forwarding postage at the single-piece First-Class or Priority Mail rate as applicable for the weight of the piece. * * * * * * * *

G The USPS and Mailing Standards

* * * * *

G040 Information Resources

* * * * *

G043 Address List For Correspondence

Add the following at the end of the unit:Other AMERICAN STANDARDS INSTITUTE INC, 11 W 42ND ST, NEW YORK NY 10036-8002, (212) 642-4900 AUTOMATIC IDENTIFICATION MANUFACTURERS (AIM), 634 ALPHA DR, PITTSBURGH PA 15238-2802, www.aimusa.org UNIFORM CODE COUNCIL INC, 8163 OLD YANKEE RD STE J, DAYTON OH 45458- 1839 * * * * *

L Labeling Lists

* * * * *

Delete the heading ``L100 First-Class Mail'' and labeling list L102.L600 Standard Mail

* * * * *

Insert new labeling list L605 as follows:L605 BMCs--Nonmachinable Parcel Post

Mailers preparing BMC Presort and OBMC Presort Parcel Post mailings of nonmachinable parcels must sort the parcels and label pallets according to this list.

Column A--destination ZIP codes

Column B--label to

005-007, 009, 068-079, 085-098, 100-119, BMC NEW JERSEY NJ 00102

124-127, 340.

006-009.................................... SCF SAN JUAN PR 006 \1\

008........................................ BMC NEW JERSEY NJ 00102 \2\ 008........................................ BMC JACKSONVILLE FL 32099 \3\

010-067, 120-123, 128, 129................. BMC SPRINGFIELD MA 05500 130-136, 140-149........................... ASF BUFFALO NY 140

150-168, 260-266, 439-447.................. BMC PITTSBURGH PA 15195

080-084, 137-139, 169-199.................. BMC PHILADELPHIA PA 19205 200-212, 214-239, 244, 254, 267, 268....... BMC WASHINGTON DC 20499

240-243, 245-249, 270-297, 376............. BMC GREENSBORO NC 27075

298, 300-312, 317-319, 350-352, 354-368, BMC ATLANTA GA 31195 373, 374, 377-379, 399.

299, 313-316, 320-339, 341, 342, 344, 346, BMC JACKSONVILLE FL 32099 347, 349.

369-372, 375, 380-397, 700, 701, 703-705, BMC MEMPHIS TN 38999 707, 708, 713, 714, 716, 717, 719-729.

250-253, 255-259, 400-418, 421, 422, 425- BMC CINCINNATI OH 45900

427, 430-433, 437, 438, 448-462, 469-474.

434-436, 465-468, 480-497.................. BMC DETROIT MI 48399 500-516, 520-528, 612, 680, 681, 683-689... BMC DES MOINES IA 50999

498, 499, 540-551, 553-564, 566............ BMC MPLS/ST PAUL MN 55202 570-577.................................... ASF SIOUX FALLS SD 570 565, 567, 580-588.......................... ASF FARGO ND 580

590-599, 821............................... ASF BILLINGS MT 590

463, 464, 530-532, 534, 535, 537-539, 600- BMC CHICAGO IL 60808 611, 613.

420, 423, 424, 475-479, 614-620, 622-631, BMC ST LOUIS MO 63299 633-639.

640, 641, 644-658, 660-662, 664-679, 739... BMC KANSAS CITY KS 64399 730, 731, 734-738, 740, 741, 743-746, 748, ASF OKLAHOMA CITY OK 730 749.

706, 710-712, 718, 733, 747, 750-799, 885.. BMC DALLAS TX 75199

690-693, 800-816, 820, 822-831............. BMC DENVER CO 80088

832-834, 836, 837, 840-847, 893, 898, 979.. ASF SALT LAKE CTY UT 840 850, 852, 853, 855-857, 859, 860, 863, 864. ASF PHOENIX AZ 852

865, 870-875, 877-884...................... ASF ALBUQUERQUE NM 870 889-891, 900-908, 910-928, 930-935......... BMC LOS ANGELES CA 90901 894, 895, 897, 936-969..................... BMC SAN FRANCISCO CA 94850 835, 838, 970-978, 980-986, 988-999........ BMC SEATTLE WA 98000

\1\ Mailed from ZIP Code areas 006-009.

\2\ If the entry post office is in ZIP Code areas 010-269, combine with mail for ZIP Code areas 005-007, 009, 068-079, 085-098, 100-119, 124- 127, and 340, and label to BMC NEW JERSEY NJ 00102.

\3\ If the entry post office is in ZIP Code areas 270-999, combine with mail for ZIP Code areas 299, 313-316, 320-339, 341, 342, 344, 346,

347, and 349, labeled to BMC JACKSONVILLE FL 32099.

[Page 37985]* * * * *

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS * * * * *

1.3 Preparation Instructions

Insert new 1.3r and 1.3s to read as follows:For purposes of preparing mail: * * * * *

r. An overflow sack for Parcel Post DSCF rate mail is a 5-digit sack prepared with fewer than 7 pieces after all other sacks for that same 5-digit ZIP Code area are prepared with 7 or more pieces per sack as required by M630. If all of the mail is sacked under M630, only one overflow sack is permitted for each 5-digit ZIP Code. If a mailing is prepared on pallets, remaining pieces of Parcel Post mail may be prepared in one or more 5-digit overflow sacks only after one or more 5-digit pallets are prepared to meet the minimum pallet requirement specified in M045. More than one overflow sack per 5-digit ZIP Code area is permitted for mail prepared to 5-digit pallets under M045. Pieces in overflow sacks qualify for the Parcel Post DSCF rates.

s. An overflow pallet in a Parcel Post DSCF rate mailing is a 5- digit pallet containing pieces that remain after one or more 5-digit pallets have been prepared to meet the minimum pallet requirement specified in M045. Only one overflow pallet per 5-digit ZIP Code area is permitted for DSCF rate mail palletized under M045. Pieces on 5- digit overflow pallets qualify for the DBMC rates.

1.4 Mailing

Amend 1.4 to read as follows:Mailings are defined as:

a. General. A mailing is a group of pieces within the same class of mail and, except for certain parcel rates, the same processing category that may be sorted together and/or may be presented under a single minimum volume mailing requirement under the applicable standards. Generally, types of mail that follow different flows through the postal processing system (e.g., automation, nonautomation carrier route, and other nonautomation) and mail for each separate class and subclass must be prepared as a separate mailing. Other specific standards may define whether separate mailings may be combined, palletized, reported, or deposited together.

b. First-Class Mail. The following types of First-Class Mail may not be part of the same mailing despite being in the same processing category:

  (1) automation rate and any other type of mail;

  (2) nonautomation Presorted rate and any other type of mail;

  (3) nonautomation Presorted rate mail prepared under the optional upgradable preparation and nonautomation Presorted rate mail prepared under the required preparation;

  (4) single-piece rate and any other type of mail.

c. First-Class Postcards. Postcards and letters must be prepared as separate mailings except that they may be sorted together if each meets separate minimum volume mailing requirements.

d. Periodicals. Mail qualifying for the In-County subclass rates may be part of a mailing at the Regular rates, or the Nonprofit rates, or the Classroom rates. Mail at carrier route rates, nonautomation presort rates, and automation rates must each be sorted as separate mailings. However, each of these mailings may be reported on the same postage statement provided the pieces are for the same publication and edition. See M041.6.0, M045.5.0, M045.7.0, and M200.6.0 for copalletized, combined, or mixed-rate level mailings.

e. Standard Mail (A). Except as provided in E620.1.2, the following types of Standard Mail (A) may not be part of the same mailing:

  (1) automation Enhanced Carrier Route and any other type of mail;

  (2) non-carrier route automation and any other type of mail;

  (3) nonautomation Enhanced Carrier route and any other type of mail;

  (4) Presorted rate mail and any other type of mail;

  (5) Presorted rate mail prepared under the optional upgradable preparation and Presorted rate mail prepared under the required preparation;

  (6) except as provided by standard, Regular mail may not be in the same mailing as Nonprofit mail, and Enhanced Carrier Route mail may not be in the same mailing as Nonprofit Enhanced Carrier Route mail.

See M041.6.0, M045.5.0, M045.7.0, and M200.6.0 for copalletized, combined, or mixed-rate level mailings.

f. Standard Mail (B). Except for single-piece rate pieces not otherwise subject to a minimum mailing requirement that are presented under an approved manifest mailing system under P710, the following types of Standard Mail (B) may not be part of the same mailing even if in the same processing category:

  (1) Parcel Post mail and any other type of mail;

  (2) Bound Printed Matter and any other type of mail;

  (3) Special Standard and any other type of mail;

  (4) Library Mail and any other type of mail. * * * * *

M012 Markings and Endorsements

Renumber current M012.3.0 and M012.4.0 as M012.4.0 and M012.5.0, respectively. Reorganize and revise M012.1.0 and M012.2.0 and insert new M012.3.0 to read as follows:1.0 MARKINGS--BASIC STANDARDS

1.1 Class and Rate

Except for single-piece First-Class Mail, mailpieces must be marked under the corresponding standards to show the class of service and/or rate paid:

a. Single-Piece First-Class Mail may be identified under E130.2.5.

b. Presorted First-Class Mail and Standard Mail (A) must be marked under 2.0.

c. Standard Mail (B) must be marked under 3.0.

d. Priority Mail must be identified under E120.

e. Periodicals must be identified under E211.

f. Express Mail is identified with the Express Mail mailing label (Label 11 or Form 5625) without any other required class or rate marking.

g. All mailable hazardous materials must be labeled and/or marked as required in C020.

1.2 Enclosures

Enclosures, attachments, and mixed rate mailpieces must be marked under the applicable standards in E070, M070, and P070.

1.3 Printing and Designs

Required markings may be printed by a postage meter, special slug, ad plate, or other means that ensures a legible marking. A marking may not include or be part of a decorative design or advertisement. 2.0 MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL (A)

2.1 Placement

a. Basic Marking. The basic required marking that indicates the class or subclass--``First-Class.'' ``Presorted Standard'' or ``PRSRT STD'' (or, until January 10, 2001, ``Bulk Rate'' or ``Blk. Rt.''); or ``Nonprofit Organization'' or ``Nonprofit Org.'' or ``Nonprofit'' must be printed or produced as part of, or directly below or to the left of, the permit imprint indicia, meter stamp or impression, or adhesive or precanceled stamp.

[Page 37986]

b. Other Markings. Other rate-specific markings (``Presorted'' or ``PRSRT'' and ``Single-Piece'' or ``SNGLP'' (First-Class Mail only); ``AUTO'' and ``AUTOCR'' (First-Class Mail and Standard Mail (A)); ``ECRLOT,'' ``ECRWSH,'' and ``ECRWSS'' (Standard Mail (A) only) may be placed in the location specified in 2.1a or, if the marking appears alone or if no other information appears on the line with the marking except postal optional endorsement line information under M013 or postal carrier route package information under M014, may be placed in the address area on the line directly above or two lines above the address. If preceded by two asterisks, the ``AUTO,'' ``AUTOCR,'' ``Single-Piece,'' or ``SNGLP'' markings also may be placed on the line above or two lines above the address in a mailer keyline or a manifest keyline or placed above the address and below the postage in an MLOCR ink-jet printed date correction/meter drop shipment line. Alternatively, the ``AUTO'' or ``AUTOCR'' markings may be placed to the left of the DPBC (subject to the barcode location and clear zone standards in C840).

c. Additional Requirements for Carrier Route. ``AUTOCR'' (First- Class Mail only), ``ECRLOT,'' ``ECRWSH,'' and ``ECRWSS'' (Standard Mail (A) only) must appear in their entirety wherever placed, except ``ECR'' may be placed in the postage area if ``LOT,'' ``WSH,'' or ``WSS,'' as applicable, is placed in the line above or two lines above the address, as specified in 2.1b.

2.2 Exceptions to Markings

a. AUTO Marking. Non-carrier route automation rate First-Class Mail and Standard Mail (A) pieces do not require an ``AUTO'' marking if they bear a DPBC in the address block or on an insert visible through a window in the address block or lower right corner. Non-carrier route automation rate First-Class pieces not marked ``AUTO'' must bear both the ``Presorted'' and ``First-Class'' markings. Non-carrier route automation rate Standard Mail (A) pieces not marked ``AUTO'' must bear the appropriate basic marking for Standard Mail in 2.1a.

b. Manifest Mailings. The basic marking must appear in the postage area on each piece as required in 2.1a. The two-letter rate category code required in the keyline on manifest mailing pieces prepared under P710 meets the requirement for other rate markings (e.g., on a First- Class piece mailed at automation carrier route rates, the ``AC'' code may replace the ``AUTOCR'' marking). 3.0 Placement of Markings--Standard Mail (B)

3.1 Basic Markings

The basic required marking that indicates the subclass--``Bound Printed Matter;'' ``Special Standard Mail'' or ``SPEC STD,'' ``Library Rate'' or ``Library Mail''--must be printed on the mailpiece. Effective January 10, 2000, these basic required markings must be printed or produced as part of, or directly below or to the left of, the permit imprint indicia or meter stamp or impression. The markings ``Parcel Post'' or ``PP'' also must be printed or produced as part of, or directly below or to the left of, the permit imprint indicia or meter stamp or impression. These Parcel Post markings are required for drop shipment rate mail and, effective January 10, 2000, will be required for all Parcel Post mail.

3.2 Other Parcel Post Markings

The required markings ``Drop Ship'' or ``D/S'' for Parcel Post drop shipment rate mail may be placed in the postage area location specified in 3.1. Alternatively, it may be placed in the address area on the line directly above or two lines above the address if the marking appears alone (no other information appears on that line). Until January 10, 2000, mail qualifying for the DBMC rate may bear the marking ``DBMC Parcel Post'' or ``DBMC PP'' in either location.

3.3 Other Bound Printed Matter Markings

The required markings ``Presorted'' (or ``PRSRT'') or ``Presorted Standard'' (or ``PRSRT STD'') or ``Carrier Route Presort'' (or ``CAR-RT SORT'') may be placed in the location specified in 3.1. Alternatively, these markings may be placed in the address area on the line directly above or two lines above the address if the marking appears alone or if no other information appears on the line with the marking except postal optional endorsement line information under M013 or postal carrier route package information under M014.

3.4 Other Special Standard Markings

The required ``Presorted'' or ``PRSRT'' for Special Standard mail may be placed in the location specified in 3.1. Alternatively, it may be placed in the address area on the line directly above or two lines above the address if the marking appears alone (no other information appears on that line). * * * * *

M032 Barcoded Labels

1.0 BASIC STANDARDS--TRAY AND SACK LABELS * * * * *

1.3 Content Line (Line 2)

Amend Exhibit 1.3a by deleting the following headings and all information under them: Priority Mail Letters--Presorted; Priority Mail Flats--Presorted; and Priority Mail Parcels--Presorted.Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER Letters--\3/5\ and Basic'' to ``PER Letters--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER Flats--\3/5\ and Basic'' to ``PER Flats--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER Parcels--\3/5\ and Basic'' to ``PER Parcels--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS Letters--\3/5\ and Basic'' to ``NEWS Letters--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS Flats--\3/5\ and Basic'' to ``NEWS Flats--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS Parcels--\3/5\ and Basic'' to ``NEWS Parcels--5-Digit, 3-Digit, and Basic.''Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk Bound Printed Matter Flats--Carrier Route'' to ``Bound Printed Matter Flats--Carrier Route''Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk Bound Printed Matter Flats--Basic'' to ``Presorted Bound Printed Matter Flats--Basic''Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk Bound Printed Matter Irregular Parcels--Carrier Route'' to ``Bound Printed Matter Irregular Parcels--Carrier Route''Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk Bound Printed Matter Irregular Parcels--Basic'' to ``Presorted Bound Printed Matter Irregular Parcels--Basic''

Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk Bound Printed Matter Machinable Parcels--Basic'' to ``Presorted Bound Printed Matter Machinable Parcels--Basic''

Amend Exhibit 1.3a, Standard Mail (B), by inserting a new Parcel Post category after Parcel Post Machinable Parcels to read as follows:

[Page 37987]

Human-readable

Class and mailing

CIN

Content line

*

*

*

*

*

Parcel Post DSCF and DDU Rates

5-digit sacks.......................... 688 STD B 5D

*

*

*

*

*

M033 Sacks and Trays

1.0 BASIC STANDARDS

1.2 Equipment

Revise 1.2c to reflect the new 13-ounce weight limit for First-Class Mail to read as follows:Mailings must be prepared in the container appropriate for the processing category and rate of the mail as follows: * * * * *

c. First-Class Mail parcels weighing less than 13 ounces must be prepared in green USPS sacks. * * * * *

M041 General Standards

* * * * * 4.0 PALLET BOXES

Revise 4.1, 4.2, and 4.4 to read as follows:4.1 Use

A mailer may use pallet boxes constructed of single-, double-, or triple-wall corrugated fiberboard placed on pallets to hold sacks or parcels prepared under M045. Pallet boxes must protect the mail and maintain the integrity of the pallet loads throughout transportation, handling, and processing. Single-wall corrugated fiberboard may be used only for light loads (such as lightweight parcels) that do not require transportation by the USPS beyond the entry office, or for Parcel Post DSCF rate mail. Mailers must supply their own pallet boxes. The base of the boxes must measure approximately 40 by 48 inches. M045 requires the use of pallet boxes meeting the size requirements in 4.2 for machinable Parcel Post claiming OBMC Presort and BMC Presort discounts. M045 prohibits use of pallet boxes for nonmachinable Parcel Post claiming OBMC Presort and BMC Presort discounts. Pallet boxes meeting the size dimensions in 4.2 also may be used at the mailer's option for Parcel Post DSCF and Parcel Post DDU rate mail.

4.2 Height

The combined height of a single pallet, pallet box, and mail may not exceed 77 inches. The contents of the box may not extend above the top rim of the box. For Parcel Post DSCF and Parcel Post DDU rate mailings, the height of the pallet box may not exceed 60 inches (excluding the pallet). For Parcel Post OBMC Presort and BMC Presort rate mailings of machinable pieces, the height of the pallet box must be 69 inches (excluding the pallet). * * * * *

4.4 Nonconforming

Except when mailing Parcel Post claiming a DSCF or DDU rate, a nonconforming mailer (see 1.4) may use pallet boxes only if the boxes are constructed of triple-wall corrugated fiberboard (C-flute and/or B- flute material) with a maximum height (pallet and box) of 77 inches. 5.0 PREPARATION * * * * *

5.2 Required Preparation

Revise text of 5.2 to read as follows:These standards apply to:

a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC Presort, OBMC Presort, DSCF and DDU rate mail). [Insert current 5.2.]

b. Parcel Post Mailed at BMC Presort, OBMC Presort, DSCF and DDU Rates. Pallets must meet the requirements specifically prescribed for these rates in M045.

5.3 Minimum Load

Revise text of 5.3 to read as follows.These standards apply to:

a. Periodicals, Standard Mail (A), and Parcel Post (Other than BMC Presort, OBMC Presort, DSCF and DDU Rate Mail). [Insert current 5.3.]

b. Parcel Post Mailed at BMC Presort, OBMC Presort, DSCF and DDU Rates.

A minimum load for the rate claimed may be stated in terms of weight, combined piece minimum and weight, or minimum height. M045 specifies separate minimum mail heights for machinable parcels and for nonmachinable parcels claimed at OBMC Presort and BMC Presort rates. Mail entered at the Parcel Post DSCF rates and prepared directly on pallets or in pallet boxes on pallets must be prepared under either a minimum height requirement or under one of two options requiring a minimum number of pieces and pounds per pallet under M045. There is no minimum weight requirement for an SCF pallet containing 5-digit sacks prepared for the DSCF rate under M630 (see M045). There are no minimums for the Parcel Post DDU rate.

Renumber current 5.4 through 5.7 as 5.5 through 5.8, respectively. Insert new 5.4 to read as follows:5.4 Minimum Height of Mail

The definitions of the minimum height of mail used to qualify for OBMC Presort, BMC Presort and DSCF Parcel Post rates are:

a. Machinable Parcels at OBMC Presort and BMC Presort Discounts and Parcels at DSCF Rates. The minimum height of mail in a pallet box is the shortest vertical distance measured from the bottom of a pallet box to the top of the lowest mailpiece. The height of the pallet is not included in this measurement.

b. DSCF Rates and Nonmachinable Parcels at OBMC Presort and BMC Presort Discounts. The minimum height of mail on a pallet is the shortest vertical distance measured from the top of the pallet to the top of the lowest mailpiece. The height of the pallet is not included in this measurement. * * * * *

M045 Palletized Mailings

* * * * * 2.0 PACKAGES OF FLATS * * * * *

2.4 Size--Standard Mail (B)

In 2.4c to change the phrase ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter.* * * * *

Add sections 9.0 through 12.0 to specify preparation requirements for the new BMC Presort, OBMC Presort, DSCF, and DDU rates as follows:9.0 PARCEL POST--BULK MAIL CENTER (BMC) PRESORT DISCOUNT

9.1 Machinable Parcels

a. To qualify for the BMC Presort discount, machinable pieces must be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box must contain at least 52 inches of mail (not including pallet) for a BMC (see M041). Overflow pallet boxes are not permitted. Preparation in sacks, directly on pallets, or in other containers is not permitted.

b. Pallet Box preparation and Line 1 labeling: destination BMC (required); for Line 1 use L601.

c. Pallet Box Line 2 labeling: ``STD B MACH BMC.''

9.2 Nonmachinable Parcels

a. To qualify for the BMC Presort discount, nonmachinable pieces must

[Page 37988]be sorted to BMCs and ASFs under L605 directly on pallets. Each pallet for a BMC or ASF destination must have a minimum height of 42 inches of mail (not including the height of the pallet) (see M041). Overflow pallets are not allowed. Preparation in sacks, pallet boxes, or in other containers is not permitted.

b. Pallet preparation and Line 1 labeling: destination BMC or destination ASF (required); for line 1, use L605.

c. Pallet Line 2 labeling: ``STD B NON MACH BMC'' or ``STD B NON MACH ASF,'' as appropriate. 10.0 PARCEL POST--ORIGIN BULK MAIL CENTER PRESORT (OBMC PRESORT) DISCOUNT

10.1 Machinable Parcels

a. To qualify for the OBMC Presort discount, machinable pieces must be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box must contain at least 52 inches of mail (not including pallet) for a BMC (see M041). Overflow pallet boxes are not permitted. Preparation in sacks, directly on pallets, or in other containers is not permitted.

b. Pallet Box preparation and Line 1 labeling: destination BMC (required); for Line 1, use L601.

c. Pallet Box Line 2 labeling: ``STD B MACH BMC.''

10.2 Nonmachinable Parcels

a. To qualify for the OBMC Presort discount, nonmachinable pieces must be sorted to BMCs and ASFs under L605 directly on pallets. Each pallet for a BMC or ASF destination must have a minimum height of 42 inches of mail (not including the height of the pallet) (see M041). Overflow pallets are not allowed. Preparation in sacks, pallet boxes, or in other containers is not permitted.

b. Pallet preparation and Line 1 labeling: destination BMC or destination ASF (required); for line 1, use L605.

c. Pallet Line 2 labeling: ``STD B NON MACH BMC'' or ``STD B NON MACH ASF,'' as appropriate. 11.0 PARCEL POST DSCF RATES--PARCELS ON PALLETS

11.1 Basic Preparation, Parcels on Pallets

Unless prepared under 11.2, or in sacks under M630, mail must be prepared for the DSCF rate as follows:

a. General. Parcels for each SCF area must be sorted to 5-digit ZIP Codes on pallets. For purposes of this section the term pallets includes preparation of parcels directly on pallets and preparation of parcels in pallet boxes on pallets. Except when prepared under 11.2, each 5-digit pallet must meet a minimum volume requirement under one of the criteria in 11.1b. Machinable and nonmachinable pieces may be combined on the same pallet or in the same overflow sack. In a single mailing mailers may prepare some pallets under the minimum volume requirement in 11.1b(1) and some pallets under the minimum volume requirement in 11.1b(2). A mailing entered at a destination SCF facility containing pallets prepared under 11.1 also may include mail that is sacked for the DSCF rate under M630. Double-stacking is permitted if the requirements of M041 are met.

b. Minimum Volume. The minimum volume per 5-digit pallet can be met in one of the following ways.

  (1) pieces may be placed on 5-digit pallets each containing at least 50 pieces and 250 pounds, or

  (2) pieces can be placed on 5-digit pallets each having a minimum height of 36 inches of mail (not including the height of the pallet) (see M041).

c. Overflow. If after filling a pallet or pallets to a 5-digit destination, pieces remain that do not meet the minimum pallet requirements they may be prepared in one of the following ways. One or both methods may be used in a single mailing.

  (1) Placed in 5-digit overflow sacks (no minimum number of pieces per sack) that are labeled in accordance with the 5-digit sacking requirements for the DSCF rate in M630. Overflow pieces sacked in this manner are eligible for the DSCF rates.

  (2) Placed on a 5-digit pallet labeled under 11.1d that does not meet the minimums for the DSCF rate. Overflow pieces palletized in this manner are not eligible for the DSCF rates but are eligible for the DBMC rates.

d. 5-digit pallet labeling:

  (1) for Line 1, use city, state, and 5-digit ZIP Code destination of contents.

  (2) for Line 2 use: ``STD B 5D.''

e. Separation. If sacks prepared under M630 are included in the same mailing as pallets prepared under this section, at the time of acceptance the mailer must separate sacks that are overflow from palletized mail from those sacks that were prepared under the provisions of M630.

11.2 Alternate Preparation, Parcels on Pallets

DSCF rate mailings not prepared under 11.1 may be prepared as follows:

a. General. All DSCF rate mail in the mailing must be sorted to 5- digits under 11.2 (i.e., mail prepared under 11.1 and mail sacked under M630 must not be included in a mailing prepared under 11.2). For purposes of this section the term pallets includes preparation of parcels directly on pallets and preparation of parcels in pallet boxes on pallets. Machinable and nonmachinable pieces may be combined on the same pallet or in the same overflow sack. The documentation in 11.2e must be presented at the time of verification. Double-stacking is permitted if the requirements of M041 are met.

b. Minimum Volume. To qualify for the DSCF rate, no pallet may contain fewer than 35 pieces and 200 pounds, and for the entire mailing the average number of DSCF rate pieces per 5-digit pallet must be at least 50.

c. Overflow. If after filling a pallet or pallets to a 5-digit destination, pieces remain that do not meet the minimum pallet requirement they may be prepared in one of the following ways. One or both methods may be used in a single mailing.

  (1) Placed in 5-digit overflow sacks (no minimum number of pieces per sack) that are labeled in accordance with the DSCF sacking requirements in M630. Overflow pieces sacked in this manner are eligible for the DSCF rates.

  (2) Placed on a 5-digit pallet labeled under 11.2d that does not meet the minimums for the DSCF rate. Overflow pieces palletized in this manner are not eligible for the DSCF rates but are eligible for the DBMC rates.

d. 5-digit pallet labeling:

  (1) For Line 1, use city, state, and 5-digit ZIP Code destination of contents.

  (2) For Line 2 use: ``STD B 5D.''

  (3) In mailer area below line 3: the pallet ID number.

e. Documentation. A list of each 5-digit pallet in the mailing that qualifies for the DSCF rate must be submitted. The pallets in the mailing that qualify for the DSCF rate must be numbered sequentially, and this pallet identification number must be printed below Line 3 on the pallet label. The documentation must list each pallet in sequential order by pallet identification number. The listing must show for each pallet the pallet identification number, the 5-digit ZIP Code of the pallet, the total weight of pieces on the pallet, the total number of pieces on the pallet, and the cumulative total of pieces (i.e., the number equal to the number of pieces for that pallet plus the sum of the pieces on all pallets listed above it). This documentation must not include: pieces prepared in overflow sacks at the DSCF rate, and pieces prepared on overflow pallets at the DBMC rates, or pieces claimed at any other rate in the mailing.

[Page 37989]11.3 5-Digit ZIP Codes for Which Pallets May Not Be Prepared

Refer to the Drop Shipment Product available from the National Customer Support Center (NCSC) (see G043) and to Exhibits E652.6.0 and E652.7.0 to determine if the facility serving the 5-digit destination can handle pallets. There is a charge for the Drop Shipment Product. If a facility cannot handle pallets, the DSCF rate is not applicable unless the mail can be prepared under the sacking requirement in M630.

11.4 5-Digit ZIP Codes Requiring BMC Entry

Refer to Exhibit E652.5.0 for 5-digit destinations where palletized mail must be entered at the BMC that serves the SCF to obtain the DSCF rate. 12.0 PARCEL POST DSCF RATES--SACKS ON PALLETS

Mailers who prepared DSCF rate mail in 5-digit sacks under M630 may place 5-digit sacks for the same SCF area on an SCF pallet (including a pallet box on a pallet). Mailers who prepare overflow from pallets under 11.1 or 11.2 may place 5-digit sacks for the same SCF area on an SCF pallet (including a pallet box on a pallet). See 11.1e for requirements concerning separation of sacks prepared under M630 from sacks prepared under 11.1. There are no pallet minimums for such pallets. Mailers may prepare such SCF pallets without having to prepare all possible 5-digit pallets prior to preparing the SCF pallet. The pallets must be labeled in the following manner:

Line 1: Use L002, Column C

Line 2: STD B PP 5D SACKS 13.0 PARCEL POST DDU RATES

Parcels may be bedloaded, sacked, or palletized. For purposes of this section the term pallets includes preparation of parcels directly on pallets and preparation of parcels in pallet boxes on pallets. There are no preparation or presort requirements for DDU rate mailings other than separation by 5-digit. If pieces are sacked or palletized, they must be prepared to 5-digits and labeled as follows: Line 1 labeling-- use city, state, and 5-digit ZIP Code destination; Line 2 use ``STD B 5D.'' Machinable and nonmachinable pieces may be combined. Refer to the Drop Shipment Product maintained by the National Customer Support Center (NCSC) (see G043) and the information in E652 including Exhibits E652.6.0 and E652.7.0 to determine the location of the 5-digit delivery facility, whether that facility can handle pallets (including pallet boxes on pallets). If a DDU facility cannot handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver must unload the pallets into a container specified by the delivery unit.

M050 Delivery Sequence

* * * * * 4.0 DOCUMENTATION

Revise 4.1 and 4.2 to read as follows:4.1 General

The mailer must provide documentation as described below to substantiate compliance with the standards for carrier sequencing. Unless the documentation is submitted with the corresponding mailing, the mailer must be able to provide the USPS with documentation of accurate sequencing or delivery statistics for each carrier route to which walk-sequence rate pieces are mailed. The mailer must annotate the postage statement to show the earliest (oldest) date of the method (in 41.a through 4.1e) used to obtain sequencing of delivery stop information for the mailing. For Periodicals the postage statement must be annotated in the ``Sequencing Date'' block on each of the lines where high density and saturation per piece rate postage is reported. For Standard Mail (A) the postage statement must be annotated in the ``Sequencing Date'' block on the front of the postage statement where total postage for Enhanced Carrier Route rates is reported. One or more of these must be submitted:

a. CDS invoice.

b. DSF invoice or DSF documentation.

c. Copies of the delivery unit summaries that served as the mailer's bills for address sequencing service charges.

d. Evidence of receipt of information from postmasters under A930 for simplified address mailings.

e. Date LOT product used.

4.2 High Density

The following documentation must be submitted for high density rate mail:

a. Standard Mail (A) and Periodicals Other than In-County Mail Qualifying Under E230.6.4c. For each carrier route to which high density rate mail is addressed, the mailer must document the total number of addressed pieces to the route. If there are fewer than 125 addressed pieces for a given route, the documentation also must show the number of possible deliveries on the route.

b. Periodicals In-County Mail Qualifying Under E230.6.4c. For each carrier route for which Periodicals In-County high density rates are claimed under the minimum 25% of the total active possible deliveries per carrier route under E230.6.4c, the documentation must show for each carrier route for which the rates are claimed the total number of active possible deliveries and the number and percentage of deliveries to which mailpieces are addressed. The documentation must be listed by 5-digit ZIP Code and, within each, by carrier route. It must be submitted with each applicable mailing. * * * * *

M070 Mixed Classes

* * * * *

M072 Express Mail and Priority Mail Drop Shipment

1.0 BASIC STANDARDS 1.1 Standards

Revise 1.1 by adding references to M072 and D071 to read as follows:The Express Mail or Priority Mail portion of the shipment must meet the standards in M500 or M100 respectively, and the applicable standards in M072 and D071. * * * * * 2.0 ADDITIONAL STANDARDS FOR ENCLOSED MAIL 2.5 Standard Mail (B)

Amend 2.5 to delete the reference to ``Bulk Parcel Post,'' to change the phrase ``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter,'' to add and exception to the zone separation requirement, and to add information on new Parcel Post DSCF and DDU rates to read as follows:Presorted Bound Printed Matter paid with meter or permit imprint, or single-piece rate Parcel Post or Bound Printed Matter paid with permit imprint, must be sorted by zone in separate Priority Mail or Express Mail pouches unless presented under a special postage payment system under P710, P720, or P730. If the enclosed mail is not presented under a special postage payment system under P710, P720, or P730, the Priority Mail or Express Mail pouches must be separated into groups by postal zone when presented to the USPS. For Parcel Post mail, the DBMC, DSCF, or DDU entry rate may be claimed subject to E652 and the destination of the Express Mail or Priority Mail sack. * * * * *

Revise the title of M073 to read as follows:

[Page 37990]M073 Combined Mailings of Standard Mail (A) and Standard Mail (B) Parcels

Revise the title of 1.0 to read as follows:1.0 COMBINED MACHINABLE PARCELS--RATES OTHER THAN PARCEL POST OBMC PRESORT, BMC PRESORT, DSCF, AND DDU

Renumber current 1.1 as 1.2, insert new 1.1, and revise section numbers in renumbered 1.2 to read as follows:1.1 Qualification

Machinable Standard Mail (A) and machinable Standard Mail (B) parcels may be combined under the sortation and other requirements in 1.0 except when claiming the following Parcel Post rates or discounts: OBMC Presort, BMC Presort, DSCF, and DDU. When claiming the OBMC Presort, BMC Presort, or DSCF rates, machinable Standard Mail (A) and machinable Standard Mail (B) parcels may be combined under the sortation and other requirements in 2.0. Standard Mail (A) parcels must not be combined with Standard Mail (B) parcels prepared for DDU rates.

1.2 Description

Subject to 1.1 and authorization under 1.5, a mailer who is authorized plant load or plant-verified drop shipment privileges may prepare a combined mailing of Standard Mail (A) and Standard Mail (B) machinable parcels that have been merged and sorted together in sacks (under 1.5) or on pallets (under M040) to achieve the finest presort level. The combined mailing must meet the standards in 1.0 and those that apply to the rates claimed. Each parcel in a combined mailing is subject to the applicable Standard Mail rate, based on the corresponding standards. Required volume for bulk or presort rates is based solely on the quantity of pieces eligible for each rate at the required presort level. Pieces claimed at other rates in the same sack or on the same pallet do not count.

Renumber existing 1.2 and 1.3 as 1.3 and 1.4, respectively.

Renumber existing 2.0 as 1.5. Renumber existing 2.1 through 2.3 as 1.5a through 1.5c, respectively.

Renumber existing 3.0 as 1.6. Renumber existing 3.1 as 1.6a and existing 3.1a through 3.1d as 1.6a(1) through a(4), respectively. Renumber existing 3.2 as 1.6b and existing 3.2a through 3.2e as 1.6b(1) through 1.6b(5), respectively.

Add 2.0 to read as follows:2.0 COMBINED PARCELS--PARCEL POST OBMC PRESORT, BMC PRESORT, AND DSCF RATES

2.1 Qualification

a. When claiming Parcel Post OBMC Presort and BMC Presort discounts and DSCF rates, machinable Standard Mail (A) parcels may be combined with machinable Standard Mail (B) parcels under 2.0.

b. When claiming the Parcel Post DSCF rate, machinable and nonmachinable Standard Mail (A) may be combined with machinable and nonmachinable Standard Mail (B) parcels under 2.0.

c. Standard Mail (A) parcels may not be combined with Standard Mail (B) parcels prepared for DDU rates.

2.2 Authorization

Mailers must be authorized under 1.5 to prepare mailings that combine Standard Mail (A) and Standard Mail (B) parcels.

2.3 Postage Payment

Postage for all pieces must be paid with permit imprint at the post office serving the mailer's plant under an approved manifest mailing system under P710. The applicable agreement must include procedures for combined mailings approved by the RCSC.

2.4 Preparation and Rates

a. Minimum Mailing Volume. Separate minimum mailing volume requirements must be met for Standard Mail (A) parcels and for Standard Mail (B) parcels.

b. Parcel Post Qualifying for DSCF Rates. The combined mailings must be prepared under the applicable 5-digit sack requirements in M630, or the applicable 5-digit pallet requirements in M040 for the Parcel Post DSCF rates. All other requirements for the Parcel Post DSCF rates and the Presorted Standard Mail (A) rates, as applicable, must be met. The following additional requirements apply:

  (1) If sacked under M630, the minimum requirement of 7 pieces per sack must be met with only Standard Mail (B) parcels. After the minimum sack volume has been met, Standard Mail (A) parcels may be included in the sack or in overflow sacks.

  (2) If palletized under the option to prepare 5-digit pallets when there are at least 50 pieces and 250 pounds per pallet, this pallet minimum must be met with only Standard Mail (B) parcels. After the minimum pallet volume has been met, Standard Mail (A) parcels may be included on the pallet or in overflow sacks.

  (3) If palletized under the alternate pallet preparation where no pallet may contain fewer than 35 pieces and 200 pounds provided the average number of pieces on pallets qualifying for the DSCF rate is at least 50, Standard Mail (A) parcels may not be combined with Standard Mail (B) parcels.

  (4) If palletized under the option to prepare 5-digit pallets under the 36-inch high (mail only) pallet minimum, any combination of Standard Mail (A) and Standard Mail (B) parcels may be used to meet the minimum pallet height requirement.

  (5) Line 2 of 5-digit pallet and sack labels must read: ``STD A/B 5D.''

  (6) Standard Mail (A) parcels are eligible for the Presorted 3/5 rate.

c. Parcel Post Qualifying for OBMC Presort or BMC Presort rates. The combined mailings must be prepared under the M040 BMC pallet requirements for machinable parcels at Parcel Post OBMC Presort or BMC Presort rates. All other requirements for the Parcel Post OBMC Presort or BMC Presort rates and the Presorted Standard Mail (A) rates must be met. The following additional requirements apply:

  (1) The minimum height requirement for each pallet or pallet box on a pallet may be met using any combination of Standard Mail (A) and Standard Mail (B) parcels.

  (2) Line 2 of BMC pallet box labels must read: ``STD A/B MACH BMC.''

  (3) Standard Mail (A) parcels are eligible for the Presorted \3/5\ rate only if it can be shown by documentation that there was insufficient volume of Standard Mail (A) parcels in the mailing to prepare separate 5-digit pallets required for Standard Mail (A) machinable parcels under M045. Otherwise, Presorted basic rates apply to the Standard Mail (A) parcels.

2.5 Documentation

Presort documentation is required as applicable for each rate claimed if the manifest does not list pieces in presort order. Separate postage statements must be prepared for the Standard Mail (A) and Standard Mail (B) pieces. Within each group, combined forms may be prepared where the standards and the forms permit. All postage statements must be provided at the time of mailing. * * * * *

M120 Priority Mail

* * * * *

Delete 2.0.M130 Presorted First-Class Mail

* * * * *

[Page 37991]

Revise the title of 2.0 to read as follows:2.0 REQUIRED PREPARATION--LETTER-AND CARD-SIZE PIECES * * * * *

Revise the title of 3.0 to read as follows:3.0 OPTIONAL UPGRADABLE PREPARATION--LETTER-AND CARD-SIZE PIECES * * * * * 5.0 PARCELS

5.1 Standards

Revise 5.1 to reflect the new 13-ounce weight limit for First-Class Mail to read as follows:First-Class parcels weighing 13 ounces or less, except Priority Mail, must be prepared under the standards below. All Priority Mail, including any First-Class parcel weighing more than 13 ounces must be must be prepared under the applicable standards in M120. * * * * *

M200 Periodicals (Nonautomation)

1.0 BASIC STANDARDS * * * * *

Delete 1.6.* * * * * 3.0 SACK PREPARATION (FLAT-SIZE PIECES AND IRREGULAR PARCELS)

3.1 Sack Preparation

Revise 3.1d and 3.1e to read as follows:Sack size, preparation sequence, and Line 1 labeling: * * * * *

d. 3-digit: required at 24 pieces, optional with one six-piece package minimum except under 1.5; for Line 1, use L002, Column A.

e. SCF: required at 24 pieces (no minimum for required origin/ optional entry SCF), optional with one six-piece package minimum except under 1.5; for Line 1, use L002, Column C. * * * * *

M600 Standard Mail (Nonautomation)

Amend the title of M610. Delete 610.1.0 and renumber 610.2.0 through 610.7.0 as 610.1.0 through 610.6.0, respectively. Make other revisions as shown below for clarity and to change ``nonautomation'' rate to ``Presorted Standard'' rate and change ``Bulk Rate'' to ``Presorted Standard.''M610 Presorted Standard Mail (A)

1.0 BASIC STANDARDS

1.1 All Mailings

All mailings at Presorted Standard rates (3/5 and basic) are subject to specific preparation standards in 2.0 through 6.0 and to these general standards (automation rate mail must be prepared under M810 or M820, as applicable):

a. Each mailing must meet the applicable standards in E620 and in M010, M020, and M030. * * * * *

e. Subject to M012, all pieces eligible for and claimed at Nonprofit Presorted Standard rates must be marked ``Nonprofit Organization'' (or ``Nonprofit Org.'' or ``Nonprofit''). Regular Presorted Standard pieces must be marked ``Presorted Standard'' (or ``PRSRT STD'') or, until January 10, 2001, ``Bulk Rate'' (or ``Blk. Rt.''). Pieces mailed at Nonprofit or Regular Presorted Standard rates must not bear ``ECRWSS,'' ``ECRWSH,'' ``ECRLOT,'' ``AUTO,'' ``AUTOCR,'' ``Single-Piece'' or ``SNGLP'' markings. * * * * *

1.3 Exception--Standard Mail (A)

When the size of the pieces in a Standard Mail (A) mailing job allows them to qualify for preparation as either letters or automation flats and when part of the job is prepared as palletized automation flats, the remainder of the job may be prepared as palletized flats at Enhanced Carrier Route nonletter rates and Presorted nonletter rates if the number of Presorted rate pieces does not exceed 10% of the total number of pieces in the entire mailing job. Presorted rate pieces in the mailing job that exceed the 10% limit and therefore may not be palletized as flats must be prepared in trays as letter mail and must be paid for at the letter rates. A separate 200-piece minimum volume requirement must be met for the trayed letter mailing to qualify for Standard Mail (A) rates.

1.4 Processing Instructions

Change the phrase ``nonautomation rate'' to ``Presorted rate'' to read as follows:If a mailer prefers that the USPS not upgrade (automate) letter- size or card-size pieces presented at a Presorted rate, the mailer must identify each tray of such mail with a facing slip or other device marked ``DO NOT AUTOMATE'' and (for letter-size mail) a tray label on which Line 2 includes ``Non-OCR.''

Revise the title of 2.0 to read as follows:2.0 LETTER-SIZE PIECES--REQUIRED PREPARATION * * * * *

Revise the title of 3.0 to read as follows:3.0 LETTER-SIZE PIECES--OPTIONAL UPGRADABLE PREPARATION * * * * * 6.0 BEDLOADED BUNDLES OF FLAT-SIZE PIECES

6.1 Authorization

In the first sentence of 6.1, change ``nonautomation rate'' to ``Presorted rate.''The RCSC manager serving the post office where the mailing is to be made may authorize preparation of Presorted rate Standard Mail (A) in bundles that are outside sacks if this preparation benefits the USPS. * * * * * * * *

M620 Enhanced Carrier Route Standard Mail

1.0 BASIC STANDARDS

1.1 All Mailings

Revise 1.1a and 1.1e to read as follows:All nonautomation rate Enhanced Carrier Route mailings are subject to these general standards (automation rate Enhanced Carrier Route mailings must be prepared under M810):

a. Each mailing must meet the applicable standards in E620 and in M010, M020, and M030. * * * * *

e. Subject to M012, all pieces eligible for and claimed at Nonprofit rates must be marked ``Nonprofit Organization'' (or ``Nonprofit Org.'' or ``Nonprofit''); all other pieces must be marked ``Presorted Standard'' (or ``PRSRT STD''), or, until January 10, 2001, ``Bulk Rate'' (or ``Blk. Rt.''). In addition, basic, high-density, and saturation rate pieces must each be marked ``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS,'' respectively. Pieces not claimed at the corresponding nonautomation Enhanced Carrier Route rate must not be marked ``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS.'' * * * * *

1.4 Exception--Standard Mail (A)

In 1.4, change the phrase ``nonletter nonautomation rates'' to ``Presorted rates,'' and make further clarifications to read as follows:

When the size of the pieces in a Standard Mail (A) mailing job allows them to qualify for preparation as either letters or automation flats and when part of the job is prepared as palletized

[Page 37992]automation flats, the remainder may be prepared as palletized flats at Enhanced Carrier Route nonletter rates and Presorted nonletter rates if the number of Presorted rate pieces does not exceed 10% of the total number of pieces in the entire mailing job. Presorted rate pieces in the mailing job that exceed the 10% limit and therefore may not be palletized as flats must be prepared in trays as letter mail and must be paid for at the applicable letter rates. A separate 200-piece minimum volume requirement must be met for the trayed letter mailing to qualify for Standard Mail (A) rates. * * * * * 5.0 RESIDUAL PIECES

Pieces not sorted under 2.0 and either 3.0 or 4.0 must be prepared as a separate mailing at Standard Mail (A) automation or Presorted rates, or at single-piece First-Class or Priority Mail rates, as appropriate. * * * * *

M630 Standard Mail (B)

Amend 1.0 to add preparation requirements in 1.3-1.6 for new destination entry Parcel Post rates, introduce new drop ship markings, eliminate the ``Catalog'' marking, and make other marking changes to read as follows:1.0 PARCEL POST

1.1 Marking

Amend 1.1 to provide for identifying Parcel Post pieces as follows:

Each piece mailed at the DBMC, DSCF, or DDU Parcel Post rates must be marked ``Parcel Post'' or ``PP'' and ``Drop Ship'' or ``D/S'' under M012. An exception is that until January 10, 2000, DBMC rate mail may be marked ``DBMC Parcel Post'' or ``DBMC PP.'' All other Parcel Post rate pieces may bear the ``Parcel Post'' or ``PP'' markings, and effective January 10, 2000, must bear the ``Parcel Post'' or ``PP'' marking under M012. Pieces not marked with the appropriate drop shipment marking as required are treated as single-piece rate Parcel Post and are subject to additional postage as necessary.

1.2 Separation

Amend 1.2 to add requirements for the DSCF and DDU rate categories as follows:Parcel Post pieces must be separated by zones when presented for acceptance unless either the correct postage is affixed to each piece or the mailing is prepared under 8.0, or presented under a special postage payment system under P710, P720, or P730. If sacks prepared under 1.5 are included in the same mailing as pallets prepared under M045, at the time of acceptance the mailer must separate sacks that are overflow from palletized mail from those sacks that were prepared under the provisions of 1.5.

1.3 Documentation

Amend 1.3 to read as follows:A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each bulk mailing (a mailing that includes pieces qualifying for rates that require a 50-piece minimum volume requirement). When presented for acceptance, documentation of postage by entry office and presort level (e.g.,. by BMC for DBMC, OBMC Presort and BMC Presort mail and by 5-digit ZIP Code for DSCF and DDU rates) is required under P710, P720, or P730. Except for DSCF rate mail palletized under the alternate preparation option that requires separate documentation, documentation is not required when the correct rate is affixed to each piece, or when each piece is of identical weight and the pieces are separated by zone and within each zone are grouped by pieces subject to the same combination of rates. DSCF rate mail palletized under the alternate preparation option in M045 must submit the detailed documentation required in M045.

Add 1.4 for DSCF mailings as follows:1.4 DSCF Rate

To qualify for the DSCF rate, pieces for the same SCF area (L002, Column C or L005) must be sorted to 5-digit ZIP Code destinations either in sacks under 1.5 or directly on pallets or in pallet boxes on pallets under M041 and M045. Pieces must be part of a mailing of at least 50 Parcel Post pieces. They must be entered at the designated SCF facility under L005 that serves the 5-digit ZIP Code destinations of the pieces except when palletized and entry is required at a BMC (see Exhibit E652.5.0). The DSCF rate is not available for palletized mail for facilities that are unable to handle palletized mailings. Refer to the Drop Shipment Product available from the National Customer Support Center (NCSC) (see G043) and Exhibit E652.6.0 and Exhibit E652.7.0 to determine if the facility serving the 5-digit destination can handle pallets. There is a charge for the Drop Shipment Product.

Add 1.5 to describe sacking requirements for DSCF mailings as follows:1.5 DSCF Sack Preparation

Sacking requirements for DSCF rates are as follows:

a. Only 5-digit sacks are permitted.

b. Each 5-digit sack must contain a minimum of 7 pieces (smaller volume not permitted). Machinable and nonmachinable pieces may be combined in the same sack to meet this requirement. One overflow sack per 5-digit ZIP Code is permitted (no piece minimum).

c. Sack Line 1 labeling: use city, state, and 5-digit ZIP Code destination of pieces, preceded for military mail by the prefixes under M031.

d. Sack Line 2: ``STD B 5D.''

e. See M045 for option to place 5-digit DSCF sacks on an SCF pallet.

Add 1.6 to describe preparation for DDU rate mailings as follows:1.6 DDU Rate

The requirements for the DDU rate are as follows:

a. For the DDU rate, pieces must be part of a mailing of at least 50 Parcel Post pieces.

b. The pieces must be entered by the mailer at the postal facility where the carrier delivers the parcels (delivery unit) as defined in E652.

c. There are no minimum sacking or pallet preparation standards. DDU rate mailings may be bedloaded, sacked, placed directly on pallets or in pallet boxes on pallets. Machinable and nonmachinable pieces may be combined in the same sack or on the same pallet (including pallet boxes on pallets).

d. If the delivery unit serves more than one 5-digit ZIP Code, the pieces must be separated by 5-digit ZIP Code when unloaded. Refer to the Drop Shipment Product available from the National Customer Support Center (see G043) and Exhibits E652.6.0 and E652.7.0 to determine the location of the delivery unit, whether it serves more than one 5-digit ZIP Code, and whether it can handle pallets. There is a charge for the Drop Shipment Product.

e. If mail is sacked it must be labeled as follows.

Line 1: City, state, and 5-digit ZIP Code destination, preceded for military mail by the prefixes under M031.

Line 2: ``STD B 5D.'' 2.0 BOUND PRINTED MATTER * * * * *

2.3 Marking

Revise 2.3 to provide for using new Bound Printed Matter markings as follows:Each piece claimed at single-piece Bound Printed Matter rates must be marked ``Bound Printed Matter'' under M012. Each piece claimed at presorted Bound Printed Matter rates must be marked ``Bound Printed Matter'' and

[Page 37993]either ``Presorted'' (or ``PRSRT'') or ``Presorted Standard'' (or ``PRSRT STD'') under M012. Pieces not marked as required are treated as single-piece rate Parcel Post, subject to additional postage as necessary.

Delete 2.4. Renumber existing 2.5 through 2.7 as 2.4 through 2.6, respectively.3.0 CARRIER ROUTE BOUND PRINTED MATTER * * * * *

3.2 Marking

Revise 3.2 to eliminate the markings ``Blk. Rt.'' and ``CATALOG'' as follows:Each piece claimed at carrier route Bound Printed Matter rates must be marked ``Bound Printed Matter'' and ``Carrier Route Presort'' (or ``Bound Printed Matter'' and ``CAR-RT SORT'') under M012. The mailer also may opt to include the marking ``Presorted'' (or ``PRSRT'') or ``Presorted Standard'' (or ``PRSRT STD'') with the above required markings under M012. Residual pieces in a carrier route Bound Printed Matter mailing may have the ``Carrier Route Presort'' or ``CAR-RT SORT'' marking if the number of residual pieces to any single 5-digit ZIP Code area does not exceed 5% of the total qualifying carrier route rate pieces addressed to that 5-digit area. The residual pieces must be separated from the qualifying pieces when presented to the USPS. Pieces not marked as required are treated as single-piece rate Parcel Post and subject to additional postage as necessary. * * * * *

3.7 Residual Pieces

Amend the third sentence of 3.7 by replacing the phrase ``bulk Bound Printed Matter'' with ``presorted Bound Printed Matter.''4.0 SPECIAL STANDARD MAIL * * * * *

4.2 Marking

Revise 4.2 to add the marking ``PRSRT'' as follows:Each piece claimed at Special Standard Mail rates must be marked ``Special Standard Mail'' or ``SPEC STD'' under M012. Each piece claimed at presorted Special Standard Mail rates also must be marked ``Presorted'' or ``PRSRT'' under M012. Pieces not marked as required are treated as single-piece Parcel Post, subject to additional postage as necessary. * * * * * 5.0 LIBRARY MAIL * * * * *

5.2 Marking

Revise 5.2 to add a reference to M012 to read as follows:Each piece of Library Mail must be marked ``Library Rate'' or ``Library Mail'' under M012. Pieces not marked as required are treated as single-piece Parcel Post, subject to additional postage as necessary. * * * * *

M800 All Automation Mail

M810 Letter-Size Mail

1.0 BASIC STANDARDS * * * * *

Amend 1.2 to delete the reference to 3/5 rates and to include information on mail qualifying for carrier route automation rates. Amend 1.2 and 1.3 to move information about postage statements and documentation from 1.2 to 1.3.1.2 Mailings

The requirements for mailings are as follows:

a. General. All pieces in a mailing must meet the standards in C810 and must be sorted together to the finest extent required. The definitions of a mailing and permissible combinations are in M011.

b. First-Class. A single automation rate First-Class mailing may include pieces prepared at carrier route, 5-digit, 3-digit, and basic automation rates.

c. Periodicals. A single automation rate Periodicals mailing may include pieces prepared at 5-digit, 3-digit, and basic automation rates.

d. Standard Mail (A). Pieces prepared to qualify for carrier route automation rates must be prepared as a separate mailing (meet a separate minimum volume requirement) from pieces prepared to qualify for 5-digit, 3-digit, and basic automation rates.

1.3 Documentation

A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing and must be supported by documentation produced by PAVE-certified (or, except for Periodicals, MAC-certified) software or by standardized documentation under P012. Mailers may use a single postage statement and a single documentation report for all rate levels in a single mailing. Standard Mail (A) mailers may use a single postage statement and a single documentation report for both an automation carrier route mailing and a mailing containing pieces prepared at 5-digit, 3-digit, and basic automation rates as applicable, submitted for entry at the same time. Documentation of postage is not required if the correct rate is affixed to each piece or if each piece is of identical weight and the pieces are separated by rate when presented for acceptance. Combined mailings of Periodicals publications also must be documented under M200. * * * * * 3.0 PERIODICALS

3.1 Tray Preparation

Amend 3.1a to read as follows:Tray size, preparation sequence, and Line 1 labeling:

a. 5-digit/scheme: optional, but 5-digit trays required for rate eligibility (150-piece minimum); overflow allowed; for Line 1, for 5- digit trays, use 5-digit ZIP Code destination of pieces, preceded for military mail by the prefixes under M031; for Line 1, for optional 5- digit scheme trays, use destination shown in the current City State File. * * * * *

M820 Flat-Size Mail

1.0 BASIC STANDARDS * * * * *

Amend 1.2 to add a reference to 5-digit and 3-digit rates. Amend 1.2 and 1.3 to move information about postage statements and documentation from 1.2 to 1.3.1.2 Mailings

All pieces in a mailing must meet the standards in C820 and must be sorted together to the finest extent required. First-Class Mail and Standard Mail (A) mailings may include pieces prepared at automation 3/ 5 and basic rates, as applicable. Periodicals mailings may include pieces prepared at automation 5-digit, 3-digit, and basic rates, as applicable. The definitions of a mailing and permissible combinations are in M011.

1.3 Documentation

Insert the following after the first sentence in 1.3:* * * Mailers may use a single postage statement and a single documentation report for all rate levels in a single mailing. * * * * * * * * 3.0 PERIODICALS * * * * *

3.2 Sack Preparation

Revise 3.2b and 3.2c to read as follows:Sack size, preparation sequence, and Line 1 labeling: * * * * *

b. 3-digit: required at 24 pieces; optional with one six-piece package

[Page 37994]minimum except under 1.7; for Line 1, use L002, Column A.

c. SCF: required at 24 pieces (no minimum for required origin/ optional entry SCF); optional with one six-piece package minimum except under 1.7; for Line 1, use L002, Column C. * * * * *

P Postage and Payment Methods

P000 Basic Information

P010 General Standards

P011 Payment

1.0 PREPAYMENT AND POSTAGE DUE

1.1 Prepayment Conditions

Revise 1.1e to read as follows:The mailer is responsible for proper payment of postage. Postage on all mail must be fully prepaid at the time of mailing, except as specifically provided by standard for: * * * * *

e. Keys and identification devices returned to owners (see E120 and E130). * * * * *

1.5 Shortpaid Mail-Basic Standards

Amend the first sentence of 1.5 by removing ``and nonstandard single- piece Standard Mail (A)'' to read as follows:Mail of any class, including mail indicating special services (except Express Mail, registered mail, and nonstandard First-Class Mail), which is received at either the office of mailing or office of address without enough postage is marked to show the total deficiency of postage and fees. * * * * * * * *

1.8 Shortpaid Nonstandard Mail

Amend 1.8 by removing ``nonstandard Single-Piece Standard Mail'' to read as follows:Shortpaid nonstandard First-Class Mail is returned to the sender. * * * * * 2.0 MAILABLE MATTER IN OR ON PRIVATE MAIL RECEPTACLES * * * * *

2.3 Partial Distribution

Amend 2.3 to reflect elimination of single-piece Standard Mail (A) rates to read as follows:If there is a distribution of pieces to some, but not all, addresses on a route, pieces are returned to the delivery unit for use in computing the postage due. First-Class Mail rates are applied to matter that would require First-Class Mail postage if mailed. For other matter, if the piece weighs less than 16 ounces, the applicable single- piece First-Class Mail or Priority Mail rate based on the weight of the piece is applied, or an applicable Standard Mail (B) rate is applied, whichever is lower. If the piece weighs 16 ounces or more, the Standard Mail (B) rate is applied. * * * * *

P012 Documentation

* * * * * 2.0 STANDARDIZED DOCUMENTATION ( FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL (A) * * * * *

2.3 Rate Level Column Headings

Amend 2.3a and 2.3b to reflect the new separate 5-digit and 3-digit presort rate categories for Periodicals mail as follows:The actual name of the rate level (or corresponding abbreviation) is used for column headings required by 2.2 and shown below:

a. Automation First-Class Mail, Periodicals, and Standard Mail (A):

Rate

Abbreviation

Carrier Route [First-Class Mail letters/ CB

cards].

5-Digit [First-Class Mail letters/cards, 5B

Periodicals letters and flats, and

Standard Mail letters].

3-Digit [First-Class Mail letters/cards, 3B

Periodicals letters and flats, and

Standard Mail letters].

3/5[First-Class Mail and Standard Mail 3/5B

flats].

Basic [letters/cards and flats].......... BB

b. Presorted First-Class Mail, nonautomation presorted Periodicals, and Standard Mail (A):

Rate

Abbreviation

Presorted [First-Class Mail letters/ Presort

cards, flats, and parcels].

5-Digit [Periodicals letters, flats, and 5D

parcels].

3-Digit [Periodicals letters, flats, and 3D

parcels].

3/5 [Standard Mail letters, flats, and 3/5

parcels].

Basic [letters/cards and flats].......... BS

* * * * *

2.4 Sortation Level

Amend 2.4 by deleting row ``Unique 3-Digit [Periodicals] '' and ``3DGU'' and by revising the SCF sortation level to read as follows:The actual sortation level (or corresponding abbreviation) is used for the package, tray, sack, or pallet levels required by 2.2 and shown below:

Sortation level

Abbreviation

*

*

*

*

*

SCF [pallets, Periodicals flats, Bound n/a

Printed Matter].

*

*

*

*

*

* * * * *

P013 Rate Application and Computation

1.0 BASIC STANDARDS * * * * *

1.4 Affixing Postage--Single-Piece Rate Mailings

Amend the first sentence of 1.4 by removing ``or Standard Mail (A)'' to read as follows:In a postage-affixed single-piece rate Express Mail, First-Class Mail, or Priority Mail mailing, or in any postage-affixed Standard Mail (B) mailing, the mailer must affix to each piece a value in adhesive stamps, precanceled stamps, or meter impressions equal to at least the postage required for the piece. * * * * * * * * 2.0 RATE APPLICATION--EXPRESS MAIL, FIRST-CLASS MAIL, AND PRIORITY MAIL * * * * *

Insert new 2.6 to read as follows:2.6 Keys and Identification Devices

Keys and identification devices weighing 13 ounces or less are charged the First-Class Mail rates per ounce or fraction thereof in accordance with 2.3, plus a $0.30 fee. Keys and identification devices weighing more than 13 ounces but no more than 2 pounds are mailed at the 2-pound Priority Mail rate in accordance with 2.4, plus a $0.30 fee. * * * * * 4.0 RATE APPLICATION--STANDARD MAIL (A)

Remove 4.1 and 4.2 and redesignate current 4.3 as the text of 4.0. Amend 4.0 to revise the breakpoints as follows:Standard Mail (A) rates are based on the weight of the pieces and are applied differently to pieces weighing less than or equal to a ``breakpoint'' (rounded to four decimal places) and those weighing more, as follows:

a. The appropriate minimum per-piece rate applies to Enhanced Carrier Route rate pieces weighing 0.2066 pound (3.3062 ounces) or less; Regular Presorted and automation rate pieces weighing 0.2068 pound (3.3087 ounces)

[Page 37995]or less; Nonprofit Enhanced Carrier Route rate pieces weighing 0.2069 pound (3.3103 ounces) or less; and Nonprofit Presorted and automation rate pieces weighing 0.2055 pound (3.2873 ounces) or less.

b. A rate determined by adding the appropriate fixed per-piece charge and the corresponding variable per-pound charge (based on the weight of the piece) applies to pieces weighing more than 0.2066 pound (3.3062 ounces) at Enhanced Carrier Route rates; weighing more than 0.2068 pound (3.3087 ounces) at Regular Presorted and automation rates; weighing more than 0.2069 pound (3.3103 ounces) at Nonprofit Enhanced Carrier Route rates; and weighing more than 0.2055 pound (3.2873 ounces) at Nonprofit Presorted and automation rates. * * * * * 5.0 RATE APPLICATION--STANDARD MAIL (B)

5.1 Basis

Postage is based on the rate that applies to the weight (postage) increment of each address piece, and where applicable, on the zone to which the piece is addressed. * * * * *

Delete current 5.6 and renumber current 5.7 as 5.6. Revise renumbered 5.6 to change the name of the rate from ``bulk'' to ``presorted'' to read as follows:5.6 Presorted Bound Printed Matter

The presorted Bound Printed Matter rate has a per-piece charge and a per-pound charge. The minimum postage rate for an addressed piece is one unit of the per-piece charge plus the per-pound charge for an addressed piece weighing 1 pound. * * * * * 8.0 COMPUTING POSTAGE--STANDARD MAIL (A)

Remove 8.1 and renumber current 8.2 through 8.5 as 8.1 through 8.4, respectively; no other changes.* * * * * 9.0 COMPUTING POSTAGE--STANDARD MAIL (B)

9.1 Mailing Weight

In 9.1a revise the term ``bulk Bound Printed Matter'' to read ``presorted Bound Printed Matter.''Revise the title of 9.2 to read as follows:9.2 Total Postage--Presorted Bound Printed Matter

In 9.2 revise the term ``bulk Bound Printed Matter'' to read ``presorted Bound Printed Matter.''* * * * *

9.4 Computing Affixed Postage--Individual Pieces

In the first and second sentences of 9.4 revise the term ``bulk Bound Printed Matter'' to read ``presorted Bound Printed Matter.''9.5 Permit Imprint

In the first sentences of 9.5a and 9.5b revise the term ``bulk Bound Printed Matter'' to read ``presorted Bound Printed Matter.''P014 Refunds and Exchanges

* * * * * 2.0 POSTAGE AND FEES REFUNDS * * * * *

2.3 Torn or Defaced Mail

Amend 2.3 by removing ``Single-Piece Standard Mail'' as follows:If First-Class Mail or Standard Mail (B) is torn or defaced during USPS handling so that the addressee or intended delivery point cannot be identified, the sender may receive a postage refund. This applies only when the failure to process and/or deliver is the fault of the USPS. Where possible, the damaged item is returned with the postage refund. * * * * *

P030 Postage Meters and Meter Stamps

1.0 BASIC INFORMATION * * * * *

1.5 Reply Postage

Revise 1.5 to reflect the new 13-ounce weight limit for First-Class Mail to read as follows:Meter stamps may prepay reply postage on Express Mail; Priority Mail when the rate is the same for all zones; First-Class postcards, letters, and flats up to a maximum of 13 ounces; single-piece rate Special Standard Mail; and Library Mail, under the following conditions: * * * * *

c. Postage on Priority Mail over 13, ounces, single-piece rate Special Standard Mail, or Library Mail may be paid only with meter- stamped address labels. * * * * * 5.0 MAILINGS

5.1 Notification of Metered Mailings Presented in Bulk

Amend the names of the rates in the first sentence of 5.1 to read as follows:Mailers who want to present Presorted First-Class Mail, Standard Mail (A), Parcel Post in bulk quantities, presorted Bound Printed Matter, Carrier Route Bound Printed Matter, or Presorted Special Standard Mail using metered postage must complete Form 3615. * * * * * * * *

5.4 Place of Mailing

Amend 5.4a by removing ``Standard Mail (A)'' to read as follows:Except as noted below, metered mail must be deposited at a post office acceptance unit, retail unit, or other location designated by the postmaster of the licensing post office (i.e., the post office shown in the meter stamp) and may not be given to a delivery employee or deposited in a street collection box, mailchute, receiving box, cooperative mailing rack, or other mail collection receptacle. Exceptions to this general standard are listed below.

a. Express Mail, Priority Mail (in a weight category for which rates do not vary by zone), or single-piece rate First-Class Mail, may be deposited in any street collection box or such other place where mail is accepted and that is served by the licensing post office. * * * * *

P040 Permit Imprints

* * * * * 4.0 INDICIA Format

4.1 Basic Standard

* * * * *

Exhibit 4.1a Indicia Formats for Mailgram and Official Mail

Under the heading ``Standard Mail (A) Official Mail,'' delete the first example, in the second example change ``BULK RATE'' to ``PRSRT STD,'' and in the third example change ``BULK RATE AUTOCR'' to ``PRESORTED STANDARD AUTOCR,'' add a new example that reads ``PRSRT STD, AUTO, POSTAGE AND FEES PAID, AGENCY NAME, PERMIT NO. G-999.''Under the heading ``Standard Mail (B) Official Mail,'' in the third example change ``BULK RATE BOUND PRINTED MATTER'' to ``PRSRT BOUND PRINTED MATTER.''Exhibit 4.1b Indicia Formats for First-Class Mail and Standard Mail

[Under the heading ``Standard Mail (A),'' in the first example change ``BULK

[Page 37996]RATE ECRWSS'' to ``PRESORTED STANDARD ECRWSS,'' in the second example change ``BULK RATE AUTOCR'' to ``PRESORTED STANDARD AUTOCR,'' in the third example change ``BLK RT AUTO'' to ``PRSRT STD AUTO,'' in the seventh and eighth examples change ``BULK RATE'' to ``PRESORTED STANDARD,'' delete the ninth example.]

Under the heading ``Standard Mail (B),'' in the second example delete the word ``BLK RT,'' in the third example change ``BULK PARCEL POST'' to ``PARCEL POST,'' add a fifth example that reads ``PP D/S, U.S. POSTAGE PAID, NEW YORK, NY, PERMIT NO. 1,'' add a sixth example that reads ``PRESORTED BOUND PRINTED MATTER, U.S. POSTAGE PAID, NEW YORK, NY, PERMIT NO. 1.''* * * * *

P100 First-Class Mail

* * * * * 2.0 SINGLE-PIECE RATE * * * * *

Insert new 2.6 to read as follows:2.6 Residual Standard Mail (A) Subject to First-Class Rates

Mailers who have pieces weighing 13 ounces or less that do not qualify for Standard Mail (A) rates, but that are prepared as Standard Mail (A), must pay single-piece First-Class Mail postage for such pieces. If mailers do not desire to receive First-Class Mail service for such pieces they may enter the mailpieces ``as is'' (i.e., bearing the Standard Mail (A) markings and endorsements), under the following conditions:

a. Additional markings and/or postage must not be added to these pieces.

b. Mail bearing metered or precanceled stamp postage must pay the difference between the postage affixed at the Standard Mail (A) rates and the single-piece First-Class Mail rates by means of an advance deposit account or by affixing a meter strip for the appropriate amount to Form 3600-P, Postage Statement--(First-Class Mail Postage Affixed. The number of pieces, rate, and any surcharge information must be entered in Part C on the reverse side of Form 3600-P in the space provided under the special heading ``From Standard Mail (A)''.

c. Mail bearing permit imprints must pay the appropriate single- piece First-Class rates by completing Form 3600-R, Postage Statement-- (First-Class Mail Permit Imprint. The number of pieces, rate, and any surcharge information must be entered in Part C on the reverse side of Form 3600-R in the space provided under the special heading ``From Standard Mail (A).'' For permit imprint mail there must be at least 200 pieces, except when the pieces are part of a larger mailing job and are submitted for acceptance along with the mail and a Standard Mail (A) postage statement for the other pieces in the same mailing job. 3.0 PRIORITY MAIL RATES * * * * *

Insert new 3.4 to read as follows:3.4 Residual Standard Mail (A) Subject to Priority Mail Rates

Mailers who have permit imprint pieces weighing over 13 ounces, but less than 16 ounces, that do not qualify for Standard Mail (A) rates, but that are prepared as Standard Mail (A), must pay Priority Mail postage for such pieces. Mailpieces paid with meters or permit imprints must re-envelope or otherwise prepare the pieces so that when mailed they bear only the appropriate Priority Mail markings, ancillary service endorsements, and ACS codes, and do not bear Standard Mail (A) markings, endorsements, or ACS codes. Mailpieces paid with permit imprints for which mailers do not desire to receive Priority Mail service may enter the mailpieces ``as is'' (i.e., bearing the Standard Mail (A) markings and endorsements), under the following conditions:

a. Additional markings and/or postage must not be added to these pieces.

b. The appropriate Priority Mail rates must be paid by completing Form 3600-PM, Postage Statement--Priority Mail Permit Imprint. The pieces must be recorded on this postage statement on the line titled ``Pieces From Standard Mail (A)'' in the postage calculation section. For permit imprint mail there must be at least 200 pieces, except when the pieces are part of a larger mailing job and are submitted for acceptance along with the mail and a Standard Mail (A) postage statement for the other pieces in the same mailing job. * * * * *

P600 Standard Mail

1.0 BASIC INFORMATION

1.1 Payment Method

Amend 1.1 to read as follows:Standard Mail postage must be paid using one of the following methods:

a. Standard Mail (A). The mailer is responsible for proper postage payment. Postage for Standard Mail (A) must be paid with meters, permit imprints, or precanceled stamps. Postage-affixed pieces must bear the correct postage unless excepted by standard. A permit imprint may be used for mailings that contain nonidentical-weight pieces only if authorized by the RCSC serving the mailing office.

b. Standard Mail (B). The mailer is responsible for proper postage payment. Subject to the corresponding standards, postage for single- piece rate Standard Mail (B) may be paid by any method. Postage for bulk rate (rate has minimum mailing volume requirement) or presort rate Standard Mail (B) must be paid with meters or permit imprints. Postage- affixed pieces must bear the correct postage unless excepted by standard. A permit imprint may be used for mailings that contain nonidentical-weight pieces only under P710, P720, or P730. Permit imprints may be used for identical weight pieces provided that the mail can be separated into groups that each contain pieces subject to the same zone and same combination of rates (e.g., all are zone 4, Inter- BMC, with a BMC Presort discount and a barcode discount). Identical weight permit imprint mail also may be mailed under P710, P720, or P730. * * * * *

Delete 1.3.Revise title of 2.0 and clarify the language in 2.1 to read as follows:2.0 Standard Mail (A)--Presorted and Enhanced Carrier Route

2.1 Identical-Weight Pieces

Mailings of identical-weight pieces in a Presorted or Enhanced Carrier Route mailing may have postage affixed to each piece at the exact rate for which the piece qualifies, or each piece in the mailing may have postage affixed at the lowest rate applicable to pieces in the mailing or in the mailing job. Alternatively, a nondenominated precanceled stamp may be affixed to every piece in the mailing or mailing job, or each piece may bear a permit imprint. If exact postage is not affixed, all additional postage must be paid at the time of mailing with an advance deposit account or with a meter strip affixed to the required postage statement. If exact postage is not affixed, documentation meeting the standards in P012 must be submitted to substantiate the additional postage unless the pieces are identical weight and separated by rate when presented for acceptance. * * * * *

Revise the heading of 3.0 to read as follows:3.0 STANDARD MAIL (A)--AUTOMATION RATES * * * * *

P710 Manifest Mailing System (MMS)

* * * * *

[Page 37997]3.0 Keyline

3.1 Letter-Size Mail

* * * * *

Exhibit P710.3.1 Letter-Size Keyline Information

Amend the postage indicia in the upper right corner of the second (Standard Mail (A))sample mailpiece by replacing ``BULK RATE'' with ``PRSRT STD'' to read as follows:PRSRT STD U.S. POSTAGE PAID NEW YORK, NY PERMIT NO. 1 * * * * *

P750 Plant-Verified Drop Shipment (PVDS)

* * * * * 2.0 PROGRAM PARTICIPATION * * * * *

2.11 Mailer Transport of PVDS

Revise 2.11 to provide for additional DSCF and DDU rate Parcel Post mailings as follows:Using any means of transportation, including Express Mail or Priority Mail drop shipment, the mailer must transport PVDS mailings from the origin plant to the destination postal facility or facilities. The mailer must not transport PVDS mailings on the same vehicle with shipments not entered as PVDS. For Standard Mail PVDS, the mailer must meet the scheduling standards for mail deposit at destination entry postal facilities. If a vehicle contains mail paid at the Parcel Post destination entry rates, the applicable standards for scheduling of deposits and unloading of vehicles apply to any other mail on the same vehicle for the same destination facility. Any material classified as hazardous under C023 may not be carried in the same vehicle as PVDS mailings.

2.12 Separation of PVDS Mailings

Renumber 2.12d and 2.12e as 2.12e and 2.12f, respectively. Add new 2.12d to provide for separation of Parcel Post at different destination entry rates in the same shipment as follows:PVDS mailings must be kept separate: * * * * *

d. When a vehicle contains a shipment of Standard Mail (B) claiming more than one destination entry discount for deposit at the same postal facility, the mail eligible for each destination entry discount must be physically separated. * * * * * 5.0 POSTAGE * * * * *

5.3 Standard Mail (B)

Revise 5.3 to explain zone-based postage computation as follows:Postage for Standard Mail (B) PVDS must be paid with meter stamps or with a permit imprint under the applicable authorization at the post office serving the mailer's location. Postage for DBMC mailings is computed from the BMC parent post office. * * * * *

P760 First-Class or Standard Mail Mailings with Different Payment Methods

* * * * * 2.0 POSTAGE * * * * *

2.2 Metered Pieces Standard Mail (A)

Revise the first sentence of 2.2 to change the term ``nonautomation'' to ``Presorted.'' Delete the last sentence.Metered pieces in a combined mailing must bear postage at a Presorted or automation rate for which the pieces are eligible. Additional postage due for metered pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. * * * * *

2.4 Precanceled Pieces Standard Mail (A)

Amend 2.4 by deleting the last sentence.* * * * * 3.0 PRODUCING THE COMBINED MAILING * * * * *

3.3 Rejected Pieces

In 3.3a, change the phrase ``Standard Mail (A) 3/5 presort rate'' to ``3/5 Presorted Standard Mail (A) rate as follows:''Pieces rejected for any reason by the mailer's automated sorting system and pulled out of the combined mailing stream must be identified by the mailer, specifically accounted for in documentation, and:

a. If postage-affixed, bear postage or have additional postage affixed to equal a rate no lower than the correct Presorted First-Class rate or 3/5 Presorted Standard Mail (A) rate for letters, as applicable. * * * * *

Revise entire R module to read as follows:BILLING CODE 7710-12-P

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BILLING CODE 7710-12-C

S Special Services

S000 Miscellaneous Services

S010 Indemnity Claims

* * * * * 2.0 GENERAL FILING INSTRUCTIONS

2.1 Who May File

Insert new 2.1d to read as follows:A claim may be filedby: * * * * *

d. Only the sender, for bulk Insured service mail.

2.2 When to File

Amend the chart to add the following:

When to file (from mailing date) Mail type or service -------------------------------------- No sooner than No later than

Bulk Insured..................... 30 days........... 6 months

*

*

*

*

*

* * * * *

2.11 Payable Claim

Amend 2.11a and add new 2.11n to read as follows:Insurance for loss or damage to insured, registered, or COD mail within the amount covered by the fee paid or within the indemnity limits for Express Mail as explained in 2.12 is payable for the following:

a. Actual value of lost articles at the time and place of mailing (see 2.11n for bulk insured articles). * * * * *

n. For bulk insured articles, indemnity is provided for the lesser of (1) the actual value of the article at the time of mailing, or (2) the wholesale cost of the contents to the sender. * * * * *

2.13 Payment

Amend 2.13 to read as follows:The USPS does not make payment for more than the actual value of the article (or, for bulk insurance, the wholesale cost of the contents to the sender if a lesser amount) nor make payment for more than the maximum amount covered by the fee paid. * * * * * 4.0 ADJUDICATION

4.1 Initial

Amend 4.1 to read as follows:The St. Louis Accounting Service Center (ASC) adjudicates and pays or disallows all domestic claims except the initial adjudication of domestic unnumbered insured claims that are not bulk insured service and those appealed under 4.3. Domestic unnumbered insured claims, except for bulk insured service, are adjudicated and paid locally at the post office accepting the claims. * * * * *

Insert new 6.0 to read as follows:6.0 BULK INSURED CLAIMS

Mailers authorized to mail at bulk insured rates under S913 will receive instructions for filing claims from their postmaster or designee, including specific claim numbers to be used when filing claims. At some time in the future, electronic filing of indemnity claims will become mandatory. Prior to mandatory electronic claims filing, customers will be provided with the format instructions for the new electronic (soft copy) of Form 3877, Firm Mailing Book for Accountable Mail, and instructions for electronic filing of indemnity claims. * * * * *

S070 Mixed Classes

1.0 BASIC INFORMATION

Amend 1.1 and 1.2 to read as follows:1.1 Priority Mail Drop Shipment

For a Priority Mail drop shipment, enclosed First-Class Mail may be sent certified or special handling; enclosed Standard Mail (B) may be sent special handling. Enclosed mail, regardless of class, may not be sent registered, insured, or collect on delivery (COD). No special services may be given to the Priority Mail segment of the drop shipment.

1.2 Special Handling

A combination mailpiece sent as a Standard Mail (B) parcel may be sent using special handling; only one special handling fee is charged for the parcel. * * * * *

S900 Special Postal Services

S910 Security and Accountability

S911 Registered Mail

* * * * * 2.0 FEES AND LIABILITY * * * * *

2.3 Postal Insurance

Amend 2.3 to read as follows:Postal insurance is provided for articles with a value of at least $0.01 up to a maximum insured value of $25,000. Insurance is included in the fee. Postal insurance is not available for articles with no value ($0.00). * * * * *

S913 Insured Mail

1.0 BASIC INFORMATION

1.1 Description

Amend 1.1 to add a reference to the bulk insurance discount read as follows:Retail insured mail provides up to $5,000 indemnity coverage for a lost, rifled, or damaged article, subject to the standards for the service and payment of the applicable fee. A bulk insurance discount is available for insured articles entered by authorized mailers who meet the criteria in 3.0. No record of insured mail is kept at the office of mailing. Insured mail service provides the sender with a mailing receipt. For mail insured for more than $50, a delivery record is kept at the post office of address. Insured mail is dispatched and handled in transit as ordinary mail.

1.2 Eligible Matter

Amend 1.2 to read as follows:The following types of mail matter may be insured:

a. Standard Mail (B).

b. Standard Mail matter mailed at the First-Class Mail or Priority Mail rates (i.e., is not matter described in E110 as required to be mailed as First-Class Mail). Sealed matter must be endorsed ``Standard Mail Enclosed'' in addition to the First-Class Mail or Priority Mail endorsement.

[Page 38030]

c. Official government mail endorsed ``Postage and Fees Paid.''

1.3 Ineligible Matter

Insert new 1.3f and 1.3g to read as follows:The following items may not be insured: * * * * *

f. Matter mailed at Standard Mail (A) rates.

g. Matter mailed at First-Class Mail rates (including Priority Mail) that consists of items described in E110 as required to be mailed at the First-Class rates. * * * * *

Renumber current 3.0 as 4.0 and insert new 3.0 to read as follows:3.0 ADDITIONAL REQUIREMENTS--BULK INSURANCE

3.1 Eligibility

To mail at the bulk insured service rates, mailers must obtain an authorization under 3.2 and must meet the following criteria:

a. Enter mailings of insured articles under an approved manifest mailing system agreement.

b. Mail a minimum of 10,000 insured articles annually. To meet the minimum volume requirement, mailers may total all insured articles mailed at multiple locations.

c. Provide a hard copy of Form 3877, Firm Mailing Book for Accountable Mail, or facsimile and a copy of Form 3877 on a disk or other electronic medium.

d. Effective at a future date, provide a soft (electronic) copy of Form 3877, Firm Mailing Book for Accountable Mail, in a new, approved format.

3.2 Authorization

Mailers must apply for authorization to mail at the bulk insured service rates through their local postmaster or designee by completing the customer portion of the Bulk Insured Service (BIS) verification form. The postmaster or designee will verify on this form that the mailer meets the requirements in 3.1. If the mailer does not meet the requirements, the application will be denied. If the mailer meets the requirements in 3.1, the postmaster or designee will certify on the Bulk Insured Service (BIS) verification form that the mailer qualifies and forward the form to the manager of Claims Processing at the St. Louis Accounting Service Center (ASC). After reviewing the information, St. Louis will notify the postmaster of their concurrence of the application and provide a range of claim numbers to be used by the mailer for filing claims. The postmaster or designee will then provide the customer with the approval of the application and with information needed to file claims, including the assigned claim numbers. At a future date, electronic filing of indemnity claims will become mandatory. Prior to mandatory electronic claims filing, customers will be provided with the format instructions for the new electronic (soft copy) of Form 3877, Firm Mailing Book for Accountable Mail, and instructions for electronic filing of indemnity claims. * * * * *

S915 Return Receipt

1.0 BASIC INFORMATION

1.1 Description

Clarify 1.1 to read as follows:Return receipt service provides a mailer with evidence of delivery (to whom the mail was delivered and date of delivery). A return receipt also supplies the recipient's actual delivery address if it is different from the address used by the sender. A return receipt may be requested before or after mailing. * * * * * 2.0 OBTAINING SERVICE

2.1 At Time of Mailing

Correct the first sentence by changing ``Form 3811 or marking the mail'' to ``Form 3811 and marking the mail'' as follows:The mailer may request the service at the time of mailing by using Form 3811 and marking the mail with the appropriate endorsement in 1.3. * * * * * * * *

S917 Return Receipt for Merchandise

1.0 BASIC INFORMATION * * * * *

1.2 Availability

Amend 1.2 to delete ``Single-Piece Standard Mail'' as follows:The service is available only for merchandise sent at the Priority Mail or Standard Mail (B) (Parcel Post, Bound Printed Matter, Special Standard Mail, or Library Mail) rates. This service may not be used on international mail.

1.3 Additional Services

Amend 1.3 to delete ``Single-Piece Standard Mail'' and add ``Priority Mail'' as follows:Special handling is available for Priority Mail, Parcel Post, Bound Printed Matter, Special Standard Mail, or Library Mail, subject to payment of the applicable fee. * * * * *

Add new S918 as follows:S918 [Reserved]

S920 Convenience

S921 Collect on Delivery (COD) Mail

1.0 BASIC INFORMATION * * * * *

1.2 Eligible Matter

Amend 1.2 by removing ``Single-Piece Standard Mail'' to read as follows:COD service may be used for Express Mail, First-Class Mail, Priority Mail, and Standard Mail (B) (Parcel Post, Bound Printed Matter, Special Standard Mail, and Library Mail) if: * * * * *

S922 Business Reply Mail (BRM)

1.0 BASIC INFORMATION * * * * *

Delete 1.5 and renumber current 1.6 as 1.52.0 PERMITS * * * * *

Delete 2.2. Renumber current 2.3 through 2.8 as 2.2 through 2.7.3.0 POSTAGE AND FEES

3.1 Permit Fee

Amend 3.1 to read as follows:An annual BRM permit fee is charged each 12-month period. * * * * *

Replace current 3.4 with new 3.4 to read as follows:3.4 Charges

a. Postage. The applicable First-Class Mail or Priority Mail postage on each returned piece is collected from the addressee on delivery. A lower rate of First-Class Mail postage applies to QBRM (R100).

b. Fee Per Piece. The applicable BRM fee must be collected for each returned piece of BRM in addition to the applicable single-piece First- Class Mail or Priority Mail postage. Lower piece fees apply to mail paid through a BRM advance deposit account and to QBRM pieces (R900).

c. Improperly Prepared QBRM. The appropriate non-QBRM First-Class Mail postage plus the non-QBRM per piece fee is charged for:

  (1) Business reply cards and letters returned under QBRM that were rejected by USPS barcode sorters and found not to meet the standards for QBRM.

  (2) QBRM pieces with an incorrect barcode (e.g., a barcode representing the card rate on a letter-size piece).

[Delete current 3.5 and renumber current 3.6 through 3.11 as 3.5 through

[Page 38031]3.10, respectively. Amend renumbered 3.6 to read as follows:]

3.6 Cash or Postage Due

Payment may be paid in cash or by a regular postage-due account. The applicable BRM fee is collected, but no business reply accounting fee is charged when a regular postage-due account is used (P011). A postage-due account does not qualify the BRM for the lower per-piece charge given to permit holders with a business reply account.

3.7 Account Use

Amend renumbered 3.7c and 3.7d to read as follows:A BRM advance deposit account must be used only for payment of postage and fees on BRM, subject to these conditions: * * * * *

c. When a permit holder with a business reply account desires a separation of charges, payment of a business reply accounting fee is required for each separate billing prepared. If a business reply accounting fee is not paid for each separation, the permit holder pays the appropriate non-QBRM First-Class Mail postage, plus for each separation the per-piece charge applicable to any mailer without a business reply account.

d. A sufficient balance must be maintained in the permit holder's advance deposit account for BRM. The permit holder is notified if funds are insufficient. After 3 days, if no funds are deposited, BRM on hand is charged at the fee for postage due or cash transactions. * * * * *

3.8 Single Item

Amend renumbered 3.8 to read as follows:Except for QBRM, two or more BRM pieces may be mailed as a single piece if the BRM pieces are identically addressed and prepared in accordance with C100. BRM postage-due calculations are based on the total weight of the piece and the appropriate First-Class Mail or Priority Mail postage plus the BRM per-piece charge for one piece. If the combined pieces become separated, BRM postage and fee charges are calculated for each piece. * * * * * 4.0 FORMAT * * * * *

4.3 Print Reflectance

Amend 4.3 to read as follows:All ink colors are acceptable if the piece meets the appropriate reflectance standards in C830 and C840. * * * * *

4.8 Delivery Address

Amend 4.8 to read as follows:Unless printed on an address label or on an insert for a window envelope under 6.0, the complete address (including the permit holder's name, street address and/or post office box number, city, state, and ZIP Code) must be printed directly on the piece, subject to these conditions:

a. For pieces distributed under QBRM, the address must include a unique ZIP+4 code that is preassigned for the BRM piece and that identifies the type of BRM, the applicable rate, and the individual permit holder (see E150).

b. Preprinted labels with only delivery address information (including a ZIP+4 barcode under 5.0) are permitted for addressing BRM, but the permit holder's name must still be printed directly on the BRM. Permit holders are liable for the postage and fees on BRM returned with improper addressing.

c. The bottom line of the address must not be lower than 5/8 inch or higher than 2-1/4 inches from the bottom edge of the piece. A clear margin void of any extraneous matter (except for the horizontal bars specified in 4.9) of at least 1 inch is required between the left and right edges of the piece and the address. * * * * *

f. A company logo is permitted on prebarcoded BRM if placed no lower than 5/8 inch from the bottom edge of the piece and is permitted on nonbarcoded BRM if placed no lower than the top of the street address or the post office box line of the address. The logo must not interfere with any required business reply endorsements. * * * * * 5.0 PREBARCODED BRM

Delete current 5.1 through 5.7, and insert new 5.1 through 5.3 to read as follows:5.1 General Format Standards

Prebarcoding of BRM is optional except for letter-size BRM enclosed in automation rate mailings and for QBRM. Prebarcoded BRM must meet all general format standards in 4.0, the applicable barcoding standards in C840, the mailpiece design requirements in C810 (except the envelope basis weight requirements in 7.1), and these standards:

a. An envelope or any mailpiece formed by an outer sheet or sheets sealed on all four edges must be prepared from paper with a minimum basis weight of 20 pounds (measured weight for 500 17 by 22-inch sheets).

b. FIM C must be used (see C100).

c. The ZIP+4 codes and barcodes assigned to the BRM permit holder by the USPS must be used. Delivery point barcodes are not permitted on BRM.

d. Except as provided in e, the ZIP+4 barcode must be placed on the address side of the piece and positioned in either of these two locations:

  (1) As part of the delivery address block under C840 if printed on an insert placed in a window envelope or on an address label affixed directly to the piece.

  (2) Within the barcode clear zone in the lower right corner of the piece if printed directly on the piece or if printed on an insert or a label affixed to an insert and placed in an envelope with a lower right barcode window under C840.

e. Until January 10, 2001, mailers may continue to use existing stocks of prebarcoded BRM envelopes and cards with barcodes in the lower right corner that:

  (1) Have a barcode clear zone with a left boundary that is 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required in C840).

  (2) Have a lower right barcode for which the leftmost bar is located between 3\1/4\ and 4 inches from the right edge of the piece (not between 3\1/2\ and 4\1/4\ inches as required under C840).

  (3) Have a lower right barcode window, that has a left boundary measuring 4\1/2\ inches from the right edge of the piece (not 4\3/4\ inches as required under C840).

f. Mailers have until January 10, 2001, to comply with C810.2.1c(2) that requires pieces measuring more than 4\1/4\ inches high or 6 inches long, or both to measure at least 0.009 inch thick. Until January 10, 2001, such pieces need only meet the minimum thickness of 0.007 inch.

5.2 Samples

Mailers are encouraged to submit preproduction samples of BRM to the USPS for approval.

5.3 Error Notification

If the USPS discovers a BRM format error, the responsible permit holder or authorized permit user receives written notification of the error and applicable specification. The permit holder must correct the error and make sure that all future BRM pieces distributed by any means meet appropriate specifications. The repeated distribution of BRM with a format error, as determined by the

[Page 38032]USPS, is grounds for revoking a business reply permit. To obtain a new permit after a BRM permit is revoked for not following BRM format specifications, a former permit holder must complete a new application on Form 3615, pay the required BRM permit fee, pay a new business reply accounting fee if applicable, and submit two samples of each BRM format to the appropriate post office for approval for the next 2-year period.

Replace 6.0 with the following:6.0 MAILPIECE CHARACTERISTICS

6.1 Paper Weight

Paper envelopes used for BRM must have a minimum basis weight of 20 pounds (500 17- by 22-inch sheets). Other pieces must meet the basis weight requirements in C810.

6.2 Nonpaper Envelopes

USPS Engineering must approve nonpaper envelopes for mailability.

6.3 Reflectance

BRM pieces must meet the reflectance requirements in C830. In addition, envelope material must not have a red fluorescence exceeding 4.0 phosphor meter units.

6.4 Sealing and Edges

Any BRM piece is nonmailable if sealed with wax, clasps, string, staples, or buttons; if all edges are not straight; or if the piece is not rectangular.

6.5 Window Envelope

The following standards apply to BRM prepared in a window or open- panel envelope:

a. The pieces must meet the standards in C830 for envelopes with an address windows and inserts.

b. The endorsement ``NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES,'' horizontal bars, FIM, and the legend ``BUSINESS REPLY MAIL'' must be printed directly on the address side of the envelope. Other required elements, including ``FIRST-CLASS MAIL PERMIT NO.,'' city, state, ``POSTAGE WILL BE PAID BY ADDRESSEE,'' and the permit holder's name and complete delivery address, may appear either on the enclosure in the window or be printed directly on the envelope.

c. The address showing through the window must be that of the permit holder or an authorized agent/dealer.

6.6 BRM Self-Mailer

Self-mailers must be at least 0.007 inch thick, not more than 0.25 inch thick, and meet the requirements for sealing and folding self- mailers in C810.4.0 and C810.7.2. Self-mailers must contain instructions to the user for sealing and folding, so that on return the self-mailer will meet the applicable sealing and folding requirements in C810. Barcoded self-mailers, including QBRM pieces also must meet the requirements in 5.0.

6.7 BRM Card

A BRM card must be rectangular, not less than 3\1/2\ by 5 inches or more than 4\1/4\ by 6 inches, and of uniform thickness not less than 0.007 inch or more than 0.016 inch to qualify for the card postage rate. Any card larger than those dimensions is mailable but is charged at the First-Class Mail rate for matter other than cards. Additional standards in 5.0 and C810 apply to prebarcoded BRM, including QBRM.

6.8 BRM Label

The following standards apply to BRM labels:

a. For other than letter-size pieces, the minimum size of a label with the legend ``Business Reply Label'' is 2 inches high and 3 inches long. It is not necessary to print FIMs or barcodes on these labels, but all other BRM format standards must be met.

b. For letter-size envelopes, the minimum size of a label with the legend ``Business Reply Label'' is 2\5/8\ inches high and 4\1/4\ inches long. A FIM must be printed on the label. The label must be coated with a permanent adhesive strong enough to firmly attach the label to an envelope. The labels must meet the standards in 4.8 and 4.9 except that the series of horizontal bars on labels must be at least \3/4\-inch high.

c. For letter-size envelopes, the permit holder must supply the user with instructions describing how the label should be applied to an envelope and what precautions must be observed when applying the label (see Exhibit 6.8). A pictorial diagram showing proper placement of the label must be included with the instructions. At a minimum, the instructions must include the following directions:

  (1) Place the label squarely on the upper right corner of the envelope.

  (2) Do not write on the envelope.

  (3) Do not use a window envelope, an envelope that is less than 1 inch taller than the label, or an envelope with any printing other than the return address.

  (4) Do not use the label on an envelope more than 4\1/2\ inches high.

  (5) Do not use tape to affix the label. d. The address must be printed in the address block, and the envelope with label affixed must meet applicable OCR readability standards in C830.

e. Business reply labels may not be distributed under QBRM.

Renumber former Exhibit 6.10 as Exhibit 6.8.Delete the entire contents of 7.0.S923 Merchandise Return Service

1.0 BASIC INFORMATION:

1.1 Description

Delete the words ``Single-Piece Standard Mail'' in 1.1.* * * * *

1.3 Payment Guarantee

Amend 1.3 for clarification and to eliminate return of articles at the single-piece Standard Mail (A) rate to read as follows:a. The permit holder guarantees payment of the proper postage and fees on all returned merchandise return service articles distributed under the permit holder's permit number. Charges are collected for each article as postage due at the time of delivery or from a centralized advance deposit account using Form 3582-C, Postage Due Invoice.

b. Articles are charged the required fees and the proper single- piece rate as follows:

  (1) The Priority Mail, First-Class Mail, Bound Printed Matter, Special Standard, or Library Mail rate as marked on the label.

  (2) If no rate marking appears on the label, pieces weighing less than 16 ounces are charged the applicable First-Class Mail or Priority Mail rates based on weight, and pieces weighing 16 ounces or more are charged the Parcel Post rate.

  (3) See 1.12 for postage on articles received without a return address or a postmark. * * * * *

1.11 Mailer Markings and Endorsements

Revise 1.11 to read as follows:If the permit holder desires matter weighing 16 ounces or more to be returned at a rate other than Parcel Post, the permit holder must preprint the appropriate rate marking on the label. If the permit hold desires matter weighing 16 ounces or less to be returned at the Special Standard or Library Mail rates, or matter weighing 13 ounces or less to be mailed at the Priority Mail rates, the mailer must preprint the appropriate rate marking on the label. Otherwise, matter weighing 13 ounces or less will be returned at the First-Class Mail rates and matter weighing over 13 ounces and less than 16 ounces will be returned at the Priority Mail rates. It is recommended but not required that

[Page 38033]matter to be returned at the First-Class Mail, Priority Mail, or Parcel Post rates bear the applicable preprinted marking ``First-Class'' or ``First-Class Mail,'' ``Priority Mail,'' or ``Parcel Post'' (or ``PP'').

1.12 No Return Address or Postmark

Articles received without a return address or postmark are charged the required fees and the proper single-piece rate as follows:

a. The Priority Mail, First-Class Mail, Bound Printed Matter, Special Standard, or Library Mail rate as marked on the label.

b. If no rate marking appears on the label, pieces weighing 13 ounces or less are charged the First-Class Mail rates, pieces weighing over 13 ounces and less than 16 ounces are charged the Priority Mail rates, and pieces weighing 16 ounces or more are charged the Parcel Post rates.

c. Zoned rates are calculated at zone 4. * * * * * 3.0 POSTAGE AND FEES * * * * *

3.2 Transaction Fee

Change ``Standard Mail'' to ``Standard Mail (B)'' as follows:The applicable transaction fee is assessed for each item returned, in addition to single-piece Priority Mail, First-Class Mail, or Standard Mail (B) rate postage and as applicable, the fees for pickup or special services. * * * * * 4.0 ADDITIONAL FEATURES

4.1 Insured Mail

Amend 4.1 to read as follows:The permit holder may obtain insured mail service with direct merchandise return service but not with Priority Mail reshipment. The customer using a merchandise return label to return an article that does not have the appropriate postage due computation markings in 5.0 or the endorsement specified in 4.2 may not obtain insured mail service. Only Standard Mail matter (i.e., matter not required to be mailed at First-Class Mail rates under E110) returned at the Standard Mail (B) rates or First-Class Mail or Priority Mail rates may be insured. If the matter is to be returned as First-Class Mail or Priority Mail, the endorsement ``Standard Mail Enclosed'' must appear below the class of mail endorsement on the merchandise return label. * * * * *

4.7 Special Handling

Revise the last sentence to read as follows:* * * Special handling service is available only for articles returned at First-Class Mail, Priority Mail, or Standard Mail (B) rates. * * * * *

4.10 Combining Special Services

Amend 4.10 to read as follows:Standard Mail articles (i.e., matter not required to be mailed at First-Class Mail rates under E110) may be both insured and receive special handing if the permit holder meets the applicable standards.

Registered merchandise return pieces cannot receive any other special service. * * * * * 5.0 FORMAT * * * * *

5.6 Format Elements

* * * * *

Revise 5.6c to read as follows:Format standards required for the merchandise return label are shown in Exhibit 5.6a, Exhibit 5.6b, and Exhibit 5.6c and described as follows: * * * * *

c. Rate Marking. If the matter to be returned bears a rate marking as required or recommended under 1.11, the rate marking must be placed in the space to the right and above the ``Merchandise Return Label'' rectangle. The marking must be at least \1/4\-inch high and printed or rubber-stamped. Only the permit holder may apply this marking. * * * * *

Revise 5.6e(3) to read as follows:e. Registry Service. * * * * * * * *

  (3) The appropriate insurance endorsement, below the ``TOTAL POSTAGE AND FEES DUE'' entry: if matter returned has value ($0.01 or greater), ``REGISTERED MAIL SERVICE WITH POSTAL INSURANCE DESIRED BY PERMIT HOLDER''; if matter returned has no value ($0.00), ``REGISTERED MAIL SERVICE WITHOUT POSTAL INSURANCE DESIRED BY PERMIT HOLDER.'' * * * * *

S924 Bulk Parcel Return Service

* * * * * 2.0 PERMITS

2.1 Application Process and Participation

Revise 2.1a and 2.1b to read as follows:To participate in BPRS, the mailer must make a written request to the postmaster at each post office where parcels are to be returned. The request must:

a. At a given delivery point, demonstrate receipt of 10,000 returned machinable parcels (originally mailed at Standard Mail (A) rates) during the previous 12 months, or

b. At a given delivery point, demonstrate a high likelihood of receiving a minimum of 10,000 returned machinable parcels (originally mailed at Standard Mail (A) rates) in the coming 12 months. * * * * * * * *

2.2 Permit Renewal

In the last two sentences change ``single-piece Standard Mail (A) rate'' to ``single-piece First-Class Mail or Priority Mail rate as appropriate for the weight of the piece.''* * * * *

S930 Handling

1.0 SPECIAL HANDLING

1.1 Description

In 1.1 change ``E620'' to ``E630.''Amend 1.2 through 1.4 to read as follows:1.2 Availability

Special handling service is available only for First-Class Mail, Priority Mail, and Standard Mail (B) (Parcel Post, Bound Printed Matter, Special Standard Mail, and Library Mail). * * * * *

1.4 Bees and Poultry

Unless sent at the First-Class Mail or Priority Mail rates, special handling is required for parcels containing honeybees or baby poultry. Under C022.37, only queen honeybees may be shipped by aircraft. Check with your local post office for mailability prior to mailing honeybees other than queen honeybees at First-Class Mail or Priority Mail rates. * * * * *

An appropriate amendment to 39 CFR 111.3 to reflect these changes will be published if the proposal is adopted. Stanley F. Mires, Chief Counsel, Legislative.

FR Doc. 98-18271Filed7-13-98; 8:45 amBILLING CODE 7710-12-P