Domestic Mail Manual: Nonprofit and classroom periodicals classification changes and notice of refund procedures,

[Federal Register: July 20, 1999 (Volume 64, Number 138)]

[Rules and Regulations]

[Page 38831-38832]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr20jy99-14]

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual Changes To Implement Nonprofit and Classroom Periodicals Classification Changes and Notice of Refund Procedures

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This document sets forth the changes to the Domestic Mail Manual to implement the July 12, 1999, Decision of the Governors of the United States Postal Service on the Recommended Decision of the Postal Rate Commission (PRC) on Periodicals Classification Changes. In addition, it contains procedures for obtaining refunds for the difference between postage paid on certain mailings at Periodicals Nonprofit or Classroom rates and postage computed at Periodicals Regular rates on those same mailings.

EFFECTIVE DATE: August 1, 1999.

FOR FURTHER INFORMATION CONTACT: Jerry Lease, 202-268-5188.

SUPPLEMENTARY INFORMATION: On April 9, 1999, the Postal Service filed with the PRC a request for a recommended decision on Periodicals classification changes designed to provide a remedy to a rate anomaly resulting from the last omnibus rate case, Docket No. R97-1. The PRC designated the filing as Docket No. MC99-3. On April 23, 1999, the PRC published a notice of the filing, with a description of the Postal Service's proposal, in the Federal Register (64 FR 13613).

On June 23, 1999, the PRC issued to the Governors of the Postal Service its recommended decision on the Postal Service's request. The PRC recommended the changes proposed by the Postal Service. On July 12, 1999, the Governors of the United States Postal Service voted to approve the PRC's recommendations, and the Board of Governors set an effective date of August 1, 1999.

This final rule contains the Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement the Governors' decision. The revised DMM standards take effect on August 1, 1999.

Because of the unusual circumstances of this anomaly, the Postal Service has also decided to make refunds available for the excess of postage paid using Nonprofit or Classroom rate schedules over postage computed using the Regular rate schedule. These circumstances include the following. The anomaly was an unintended byproduct of the highly complex Periodicals rate design process,

[[Page 38832]]

resulting in higher postage for Preferred rate publications than Regular rate publications for certain mail with the same characteristics. Moreover, both the Regular and Preferred rates were available to the publications affected by the anomaly at the time of mailing; and mailers would have qualified for the lower Regular rates if they had surrendered their Nonprofit or Classroom authorizations.

For mailings made prior to August 1, a publisher of a Nonprofit or Classroom Periodicals publication may request a refund for the difference between postage paid at Nonprofit or Classroom rates and postage computed at Regular rates, if the Regular postage is lower. On April 26, 1999, the Postal Service published a notice in the Federal Register (see 64 FR 20340-20341) of procedures for tracking differences in postage between Regular rates and Nonprofit or Classroom rates, for the purpose of making refunds for mailings made starting April 9, 1999. The Postal Service has decided that appropriate refunds may be made back to January 10, 1999.

An application for a refund will consist of a written statement that the mailer is currently authorized to use either Classroom or Nonprofit Periodicals rates and wishes to retain that authorization, but also wishes to be considered under these procedures for a refund to be calculated with reference to Regular rate postage statements to be submitted with the refund application and Preferred rate postage statements on file at the post office. Mailers must use the instructions published in the April 26, 1999, Federal Register notice. Some publishers may have already submitted refund requests for mailings made between April 9, 1999, and August 1, 1999. Refund requests must be submitted according to published instructions and received no later than September 15, 1999. No refunds will be given for mailings entered on or after August 1, 1999, regardless of whether a mailer could have claimed a lower postage rate.

Under the new rules, the mailer must choose either Regular or Preferred rates for each issue of a publication and complete the applicable postage statement, except that a supplemental mailing at least 10 calendar days after other mailings for the issue can be treated separately. All postage statements for a particular issue should be provided with an application for a refund, but a supplemental mailing at least 10 calendar days after other mailings does not need to be included in calculating refunds.

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, 3626, 5001.

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

   E200 Periodicals * * * * *

   E270 Preferred Periodicals * * * * *

   2.0 NONPROFIT RATE--BASIC INFORMATION:

   * * * * *

   [Add new 2.4 as follows:]

   2.4 Rate Anomaly

   When the Nonprofit postage computed for a single issue is higher than the Regular postage computed for the same issue, that issue is eligible for postage at Regular rates. Mailers cannot use different rate schedules for the same issue, except for a supplemental mailing for a particular issue entered at least 10 calendar days after other mailings for that issue. Publications claimed at Regular rates under this section with an advertising percentage of 10% or less are considered 100% nonadvertising for Regular rate purposes. Those publications may use ``0'' as the ``advertising percentage'' when computing the nonadvertising adjustment to be applied to outside-county piece rate charges. * * * * *

   5.0 CLASSROOM RATES

   * * * * *

   [Add new 5.5 as follows:]

   5.5 Rate Anomaly

   When the Classroom postage computed for a single issue is higher than the Regular postage computed for the same issue, that issue is eligible for postage at Regular rates. Mailers cannot use different rate schedules for the same issue, except for a supplemental mailing for a particular issue entered at least 10 calendar days after other mailings for that issue. Publications claimed at Regular rates under this section with an advertising percentage of 10% or less are considered 100% nonadvertising for Regular rate purposes. Those publications may use ``0'' as the ``advertising percentage'' when computing the nonadvertising adjustment to be applied to outside county-piece rate charges.

   An appropriate amendment to 39 CFR 111.3 will be published to reflect these changes. Stanley F. Mires, Chief Counsel, Legislative.

   [FR Doc. 99-18510Filed7-19-99; 8:45 am]

   BILLING CODE 7710-12-P