Domestic Mail Manual: SAVE verification procedures and revisions Combined postage payment standards; automation letter mail,
[Federal Register: December 9, 1999 (Volume 64, Number 236)]
[Proposed Rules]
[Page 68965-68967]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09de99-19]
POSTAL SERVICE
Presentation of First-Class and Standard Mail (A) Automation Letter Mail for Verification Under New SAVE Verification Procedures and Revisions to Combined Postage Payment Standards
AGENCY: Postal Service.
ACTION: Proposed rule.
SUMMARY: The Postal Service will implement new Standardized Acceptance and Verification (SAVE) procedures for First-Class and Standard Mail (A) automation letter mail in mid-December 1999. These new SAVE procedures will replace existing verification procedures for many First-Class and Standard Mail (A) automation letter mailings. To facilitate these new SAVE procedures, the Postal Service is proposing that, effective March 1, 2000, for mailings produced by MLOCRs and barcode sorters, and effective July 1, 2000, for mailings produced by other means, mailers of First-Class and Standard Mail (A) automation letter rate mailings must physically separate Mixed AADC trays from other mail when the mailings are presented to the Postal Service for verification. In addition, for mailings of 10,000 or more pieces, the Postal Service is proposing to eliminate the current option that standardized documentation is not required with a mailing when the exact rate of postage is affixed to each piece or when it consists of identical weight pieces and is physically separated by rate category when presented to the Postal Service for verification. Under the proposal, effective March 1 for mailings produced by MLOCRs and barcode sorters, and effective July 1 for mailings produced by other means, each First-Class and Standard Mail (A) automation letter rate mailing of 10,000 or more pieces must be accompanied by paper documentation in a standardized format or, if authorized, with electronic documentation.
The Postal Service recently revised rate marking requirements for MLOCR mailers and documentation requirements for mailers who participate in automation letter mail value added refund (VAR) (DMM P014.4.0) and combined postage payment systems (DMM P760). In addition to these changes, the Postal Service is also hereby proposing, effective March 1, 2000, to amend the DMM standards for combined mailings to specify that First-Class Mail pieces weighing over one ounce and paid with precanceled stamps will not be permitted to be included in such mailings.
DATES: Comments must be received on or before January 10, 2000.
ADDRESSES: Mail or deliver written comments to the Manager, Mail Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW, Room 6800, Washington, DC 20260-2405. Copies of all written comments will be available for inspection and photocopying at USPS Headquarters Library, 475 L'Enfant Plaza SW, 11th Floor N, Washington, DC between 9 a.m. and 4 p.m., Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, (202) 268-6351 (Domestic Mail Manual changes), or Scott Hamel, (703) 329-3660 (SAVE procedures).
SUPPLEMENTARY INFORMATION: The Postal Service is working on a number of fronts to help business mailers provide the highest quality of letter/ card mail possible. Programs such as the Coding Accuracy Support System (CASS), Mail Quality Control (MQC), Presort Accuracy Validation and Evaluation (PAVE), and Mail Preparation Total Quality Management (MPTQM) provide quality assurance within the mailer's mail preparation process so that mailings presented to the Postal Service are properly prepared and can be handled efficiently.
Postal Service verification of mailings for proper preparation before entry into the mailstream is also a form of quality control. The Postal Service is moving toward greater use of technology in this verification process using devices such as Automated Barcode Evaluation (ABE), and proposed for early 2000 (initially for diagnostic purposes only) use of portable barcode verifiers for barcodes on tray and sack labels, and proposed for fall 2000, the Mailing Evaluation Readability Lookup Instrument (MERLIN). Technology promises to be the most viable and objective means of measuring quality. The Postal Service recognizes, however, that there always will be a need for commensurate manual verification procedures to cover instances when automated devices are not available. The SAVE verification procedures are primarily manual.
SAVE is the Postal Service's response to requests by business mailers for a verification process that is predictable, fair, consistent, and documented. SAVE also directs Postal Service attention to where the risk of poor quality lies. There are two verification levels and error rate thresholds under SAVE. The first level is for mailers who have been
[[Page 68966]]
certified by the Postal Service under the Mail Preparation Total Quality Management (MPTQM) program. The second level is for mailers who are not part of the MPTQM program. Mailers who have made commitments to quality under the MPTQM program will have certain portions of SAVE verifications performed on a less frequent basis, or not at all if that aspect of mail preparation is verified under MPTQM assurance reviews. Under SAVE, mailers will receive feedback on the quality of their mail to facilitate resolution of mail quality problems. SAVE incorporates most of the separate procedures used today to verify mail. For example, it employs the current ABE and short paid mail verification procedures. However, under SAVE, various separate verification checks have been standardized, made more complete, and structured. Corrective actions have been clarified and more diagnostic information will be provided to mailers. SAVE provides verification procedures for First-Class and Standard Mail (A) automation letter mailings, including those submitted under value added refund (VAR) procedures and combined mailing postage payment systems. A standard 4% error tolerance will apply to mailings verified under SAVE, including VAR and combined mailings. VAR mailings, for the first time, will be treated like all other mailings when postage adjustments become necessary. Rather than lose a value added refund when the error tolerance is exceeded, VAR mailers will pay a postage adjustment.
The amount of additional postage that must be paid for a mailing exceeding the 4% error tolerance under SAVE procedures will be calculated by determining the difference between the First-Class single-piece rate postage (based on weight) and the average weight per piece based on the First-Class or Standard Mail (A) automation letter rates claimed by the mailer. This difference in postage per piece will be multiplied by the number of pieces in the mailing to determine the total workshare discount. The total workshare discount will be multiplied by the verification error percentage to determine the additional postage due.
Mailers were provided information about SAVE in business sessions at the last two Postal Forums. During Postal Forum sessions the primary Postal Service SAVE development technician explained the procedures in great detail and demonstrated the forms to be used, and the process for checking mail and determining postage adjustments. Several detailed presentations also have been made to members of the National Association of Presort Mailers, at their request. In addition, every MLOCR mailer in the country was invited by letter to a special meeting in April 1999 to hear about SAVE and other topics. Feedback from these groups was used when designing the procedures. Notice of the start-up of SAVE procedures for First-Class and Standard Mail (A) automation letter mail prepared with MLOCRs and/or barcode sorters beginning in the middle of December 1999 was announced in the December 2, 1999, Postal Bulletin. That Postal Bulletin contains information concerning a phase-in period from mid-December 1999 through February 29, 2000. During the phase-in period, mailings found to have errors under the SAVE verification procedures will not be assessed additional postage unless the error rate for the mailing is 5% or more.
These SAVE standards apply to the initial acceptance procedures applied by the business mail entry unit. Nothing in SAVE or other verification procedures prevents independent review of mail by Revenue Assurance, the Inspection Service, the Office of Inspector General, or others. Nor do they prevent a postage adjustment based on these reviews. In instances of fraud or related activities, the postage adjustment may be based on the mail as presented to the Postal Service even if the overall error rate is less than that established in these procedures.
This proposed rule requests comments from mailers on two key mail preparation changes that are necessary for smooth application of the SAVE verification procedures. The first change will require mailers of First-Class and Standard Mail (A) automation letter mail to separate mixed AADC trays from other mail when presented to the Postal Service for verification. The second change will require submission of standardized documentation with all mailings of First-Class and Standard Mail (A) automation letter mail that contain 10,000 or more pieces. That is, the current provision allowing mailers to submit mailings without documentation if the mailings either (1) have exact postage affixed to each piece or (2) consist of identical weight pieces that are physically separated by rate category when presented to the Postal Service for verification will be deleted for mailings of 10,000 or more pieces.
As part of its efforts towards a standardized process, the Postal Service has separately adopted several clearer, standardized reports to be presented by the mailer with First-Class and Standard Mail (A) automation mailings that are submitted under VAR and/or combined postage payment systems. In addition, the Postal Service has announced new marking requirements for First-Class and Standard Mail (A) automation letter mailings that are prepared using MLOCRs and for which the MLOCR is used to apply the rate marking. These new marking and documentation requirements were developed in conjunction with MLOCR manufacturers and supporting software vendors and were announced and discussed at a special MLOCR users group meeting and at the last two Postal Forums. The Domestic Mail Manual changes incorporating the new marking and documentation requirements were published in the Postal Bulletin of December 2, 1999. The documentation formats have been incorporated in software provided by MLOCR manufacturers. If copies of the documentation are not available from an MLOCR vendor, sample copies may be obtained from the Rates and Classification Service Center (RCSC) that serves a particular mailer. Beginning January 3, 2000, the new markings must be used on pieces in First-Class and Standard Mail (A) automation letter mailings that are prepared using MLOCRs and for which the MLOCR is used to apply the rate marking. Also effective January 3, 2000, all mailers entering mail under VAR and/or combined postage payment procedures (DMM P014 and P760) will be required to meet the new documentation requirements. During the SAVE verification process, the new markings and documentation will help business mail acceptance clerks determine if the proper amount of postage has been claimed by the mailer.
Separate from these mail preparation revisions, but as part of the update to the procedures for submitting mailings under the combined mailing postage payment system, the Postal Service is hereby proposing to clarify the standards concerning precanceled stamp mail contained in such mailings. The change limits the weight of First-Class Mail prepared with precanceled stamps that are entered under the combined mailing postage payment system to pieces weighing a maximum of one ounce. The Postal Service does not provide a precanceled stamp that represents postage for additional ounces of First-Class Mail. Therefore First-Class rate precanceled stamp mailers would only be able to affix postage for any additional ounces for pieces weighing over one ounce if they had a permit for mailer precancelation under DMM P023. Additionally, for pieces weighing over two ounces, precanceled stamp
[[Page 68967]]
mailers would not be able to affix postage for the first ounce that reflects the lower first-ounce rate for presorted pieces weighing over two ounces, as is required for metered mailers under this postage payment procedure. The additional documentation that would be required to be added to combined mailing procedures to document postage paid and owed for precanceled stamp pieces weighing over one ounce would be extremely burdensome. Furthermore, the Postal Service understands that there are few mailers, if any, that have a need to include First-Class mail weighing over one ounce and paid with precanceled stamps in combined mailings under DMM P760. Accordingly, the Postal Service proposes to revise the DMM to specify that First-Class precanceled stamp mail weighing over one ounce may not be included in combined mailings.
In summary, the proposed Domestic Mail Manual changes needed to implement the new verification procedures for automation letter mailings and to revise the requirements for combined mailings are:
(1) For First-Class and Standard Mail (A) automation letter mailings, mixed AADC trays must be physically separated from other trays when the mail is presented to the USPS for verification. The proposed effective date for this change is March 1, 2000, for mail produced by MLOCRs and barcode sorters, and July 1, 2000, for other automation letter mail.
(2) For all First-Class and Standard Mail (A) automation letter mailings containing 10,000 or more pieces, documentation must be submitted on paper in a standardized format. Alternatively, if authorized by the Postal Service, the standardized documentation may be submitted in an electronic format. The proposed effective date for this change is March 1, 2000, for mail produced by MLOCRs and barcode sorters, and July 1, 2000, for other automation letter mail.
(3) The Postal Service proposes to amend the DMM standards for combined mailings to prohibit inclusion in such mailings of First-Class Mail pieces that weigh over one ounce and are paid with precanceled stamps. The proposed effective date for this revision is March 1, 2000.
Although exempt from the notice and comment requirements of the Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on the following proposed revisions to the Domestic Mail Manual, incorporated by reference in the Code of Federal Regulations. See 39 CFR Part 111.
List of Subjects in 39 CFR Part 111
Postal Service.
PART 111--[AMENDED]
-
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, 414, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
-
Revise the following sections of the Domestic Mail Manual as set forth below:
M000 General Preparation Standards
* * * * *
M800 All Automation Mail
M810 Letter-Size Mail
1.0 Basic Standards
* * * * *
[Amend 1.3 to read as follows:]
1.3 Documentation
A complete, signed postage statement, using the correct USPS form or an approved facsimile, must accompany each mailing. Each mailing must also be accompanied by presort and rate documentation produced by PAVE-certified (or, except for Periodicals, MAC-certified) software or by standardized documentation under P012. Exception: For mailings of fewer than 10,000 pieces, presort and rate documentation is not required if postage at 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. 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 (with a separate summary for carrier route and a separate summary for all other rate levels) for both an automation carrier route mailing and a mailing containing pieces prepared at 5-digit, 3-digit, and basic automation rates as applicable, when both mailings are submitted for entry at the same time. Combined mailings of more than one Periodicals publication also must be documented under M200. First-Class and Standard Mail (A) mailings prepared under the value added refund procedures or as combined mailings must meet additional standardized documentation requirements under P014 and P760. * * * * *
[New 1.8 is added to read as follows:]
1.8 Presentation
Upon presentation of letter-size automation rate First-Class Mail and Standard Mail (A) mailings to the Postal Service for verification, mailers must physically segregate mixed AADC trays from other trays in the mailing. * * * * *
P Postage and Payment Methods
P000 Basic Information
* * * * *
P700 Special Postage Payment Systems
* * * * *
P760 First-Class or Standard Mail (A) Mailings With Different Payment Methods
* * * * *
2.0 Postage
* * * * *
[Amend 2.3 to restrict precanceled stamp pieces to those weighing one ounce or less to read as follows:]
2.3 Precanceled Pieces--First-Class Mail
Pieces with precanceled stamps in a combined mailing must not weigh more than one ounce and must bear postage for the first ounce in any denomination of precanceled stamp permitted in a Presorted or automation rate mailing. Additional postage due for precanceled stamp pieces in a combined mailing is deducted from the mailer's postage due advance deposit account. Full postage at the single-piece First-Class rates must be paid on accompanying single-piece rate mail using one of the methods under P100. Additional preparation to verify postage due may be required by the Postal Service. * * * * *
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. 99-31968Filed12-8-99; 8:45 am]
BILLING CODE 7710-12-P
