Seamless Changes for Detached Mail Unit (DMU) and Full-Service Mailings

Citation85 FR 27299
Record Number2020-08625
Published date08 May 2020
SectionRules and Regulations
CourtPostal Service
Federal Register, Volume 85 Issue 90 (Friday, May 8, 2020)
[Federal Register Volume 85, Number 90 (Friday, May 8, 2020)]
                [Rules and Regulations]
                [Pages 27299-27301]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-08625]
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                POSTAL SERVICE
                39 CFR Part 111
                Seamless Changes for Detached Mail Unit (DMU) and Full-Service
                Mailings
                AGENCY: Postal ServiceTM.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: The Postal ServiceTM is revising Mailing Standards
                of the United States Postal Service, Domestic Mail Manual (DMM[supreg])
                to require Detached Mail Unit (DMU) mailers and mailers that enter
                full-service mailings at a Business Mail Entry Unit (BMEU) to
                participate in Seamless Parallel by June 1, 2020. In addition, the
                Postal Service provides advance notice of its intent: To require all
                mailers with an authorized Detached Mail Unit to enroll in the Seamless
                Acceptance Program by May 1, 2021; and to verify all BMEU-entered full-
                service mailings using only automated sampling and verification
                processes beginning July 1, 2021.
                DATES: Effective June 1, 2020.
                FOR FURTHER INFORMATION CONTACT: Lance Bell at (407) 782-2972, or
                Jacqueline Erwin at (202) 268-2158.
                SUPPLEMENTARY INFORMATION:
                Background
                 Seamless Acceptance leverages electronic documentation (eDoc) and
                the Intelligent Mail[supreg] barcodes (IMbs) on all containers,
                handling units, and mailpieces required under full-service. Mailpiece
                scans collected from mail processing equipment (MPE) and samples from
                hand-held scanning devices are reconciled to the mailer eDoc to confirm
                proper mail preparation for discounts claimed and confirm correct
                postage payment. This capability avoids the need for verification of
                mail at acceptance.
                 The Postal Service published a notice of proposed rulemaking on
                January 8, 2020 (85 FR 856-859), to require mailers with authorized
                Detached Mail Units (DMU) and mailers that enter full-service mailings
                at a Business Mail Entry Unit (BMEU) to participate in Seamless
                Parallel by March 1, 2020. In addition, the Postal Service provided
                advance notice of its intent to require DMU mailers to enroll in the
                Seamless Acceptance Program by February 1, 2021. Moreover, the Postal
                Service provided advance notices of its intent to verify all full-
                service mailings entered at a BMEU using automated sampling and
                verification processes, beginning July 1, 2021.
                 The Postal Service received many insightful comments and questions
                from the mailing community in response to the proposed rule of January
                8, 2020. In response to those comments, the Postal Service incorporates
                the following changes into this final rule, and notes that aside from
                these changes, Seamless Acceptance plans have not changed in substance
                from the proposed rule of January 8, 2020:
                 Mailers with authorized DMUs and mailers entering full-
                service mailings at BMEUs must enroll in Seamless Parallel by June 1,
                2020 (instead of March 1, 2020).
                 In addition, the Postal Service intends to propose the following
                regulatory changes in a future rulemaking:
                 Mailers with authorized DMUs, as a condition of their DMU
                authorization, must participate in Seamless Acceptance by May 1, 2021;
                 Full-Service mailings entered at BMEUs will begin to be
                verified using only automated sampling and verification processes on
                July 1, 2021.
                Comments on Seamless Changes for Detached Mail Unit (DMU) and Full-
                Service Mailings and USPS Responses
                 The Postal Service received seven formal responses on the Seamless
                changes for Detached Mail Unit (DMU) and Full-Service Mailings
                proposal. Six formal responses included comments on more than one
                issue.
                Incentive for Mailers To Adopt Seamless Acceptance
                 Five comments encouraged the USPS[supreg] to provide an incentive
                for mailers to defray costs incurred from migrating to Seamless
                Acceptance. Respondents claim that there is a significant cost impact
                to business (above and beyond full-service IMb participation) to
                participate in Seamless Acceptance, and that the USPS should provide an
                incentive to offset the investment and ongoing costs incurred by
                mailers.
                USPS Response
                 USPS will continue to work collaboratively with industry
                stakeholders to minimize any cost impact to mailers that adopt Seamless
                Acceptance. The Postal Service notes that new rates, including
                incentives, must be authorized by the Governors of the Postal Service
                and reviewed by the Postal Regulatory Commission.
                Piece Weights May Cause Assessments
                 Four comments stated that varying piece weights may cause a mailer
                to be susceptible to an assessment. Respondents claim this is
                especially true for flat-size pieces susceptible to environmental
                impacts (e.g., humidity).
                USPS Response
                 USPS has initiated the creation of a Task Team (MTAC TT-30) to work
                collaboratively with industry stakeholders. USPS will consider
                recommendations from MTAC TT-30.
                Images of Mailpieces To Assist With Undocumented Errors
                 Four comments encourage USPS to provide mailers with images of
                undocumented pieces and other mailer scorecard errors so they can
                identify the specific mailer or mailing to investigate and resolve mail
                quality issues.
                USPS Response
                 USPS will continue to explore the feasibility of this proposal.
                The Timeline for Mandating Seamless Acceptance for DMUs
                 Three comments had concerns that the intended February 1, 2021 date
                was too close to implementation of the January 2021 price change. Price
                changes require significant resources and commenters are concerned that
                their resources will be limited and will not be ready by February 1,
                2021.
                USPS Response
                 As previously indicated, the USPS recognizes the industry concern
                with the proposed dates and has made the following changes:
                 Seamless Parallel enrollment must be completed by June 1,
                2020.
                 Intended date to require DMU sites to Seamless changed to
                May 1, 2021.
                 Verification of BMEU full-service mailings intended to
                begin on July 1, 2021.
                General Overall Timeline and Deadline To Adopt Seamless Acceptance
                 Three comments voice concerns on the general timeline in terms of
                USPS ability to provide the necessary education, training, and customer
                service needed for mailers to adopt Seamless Acceptance.
                USPS Response
                 USPS has provided extensive internal and external training on the
                Streamlined Mail Entry Programs. The Mail Entry
                [[Page 27300]]
                staff will be able to effectively manage the influx of new Seamless
                mailers. In addition, USPS has created a centralized Mailing and
                Shipping Solutions Center (MSSC) with specially trained personnel to
                answer mailer questions and provide information. USPS continues to
                emphasize ongoing internal training to ensure USPS staff have the most
                up-to-date training and tools necessary to assist mailers with any
                concerns or issues that may arise.
                Legacy Verifications at Acceptance To Avoid Assessments
                 One comment stated that the customer was using legacy verifications
                as their quality control to avoid un-foreseen assessments.
                USPS Response
                 Seamless Acceptance and the automated sampling and verification
                processes provide mailers with the opportunity to view their mail
                quality metrics throughout the month utilizing the Mailer Scorecard.
                The Mailer Scorecard is updated each night with current Mail Quality
                Metric reporting, enabling mailers to diagnose errors and implement
                changes prior to being assessed. The Scorecard provides a daily update
                informing the customer of any potential assessments that could be
                levied if the mail quality metric continues to exceed the posted error
                threshold.
                ``After the Fact'' Postage Assessment
                 One comment expressed a concern of a potential assessment after a
                mailing has been accepted and entered into the mailstream, without a
                chance to avoid the assessment by fixing the mailing.
                USPS Response
                 The Postal Service works collaboratively with mailers to provide
                advice and guidance throughout the month on Mailer Scorecard issues.
                Mailers start in the Seamless Parallel process to gauge how they would
                have performed under Seamless verifications; no assessments are imposed
                during Seamless Parallel. Seamless Parallel provides mailers
                opportunities to gather information and correct issues prior to moving
                to Seamless Acceptance. During this Seamless Parallel process USPS
                works with mailers to mitigate Mailer Scorecard errors and prepare
                mailers to adopt Seamless Acceptance.
                Impact on Exceptional Dispatch Periodicals, Associate Office
                Acceptance, and Updated Guides
                 Several other comments mentioned the Seamless Acceptance impact on
                Exceptional Dispatch for Periodicals mailings, mailings accepted at
                local associated offices (AO), and when updated guides would be posted.
                USPS Response
                 There is no impact to Exceptional Dispatch Periodicals mailings.
                Customers would continue to drop at the sites that are currently
                established drop locations as part of their Exceptional Dispatch.
                Mailings at smaller AOs will continue as they currently do today. The
                updated Guide to the Mailer Scorecard and Publication 685, Publication
                for Streamlined Mail Acceptance for Letters and Flats will be posted on
                PostalPro in April 2020.
                Non-Acceptance Detached Mail Unit (DMU) Duties if DMU Closes
                 Further comments inquired into the impact Seamless Acceptance will
                have on the other non-acceptance duties performed at a DMUs like
                Certificates of Mailing, and questioned whether DMUs may be closed.
                USPS Response
                 Due to the automated verification processes, DMU sites enrolled in
                Seamless Acceptance will experience a reduced presence of USPS
                personnel onsite. Other duties such as Certificates of Mailings and
                non-acceptance duties will be completed when the clerk is on site for
                Seamless samplings. It is not the intent of the Postal Service to close
                DMUs but rather to require adoption of Seamless Acceptance by May 1,
                2021, as a condition of DMU authorization. When mailers submit the PS
                Form 3834, Detached Mail Unit Authorization Application, they agree to
                prepare mailings in accordance with applicable standards in the DMM.
                Any DMU mailer that anticipates they will be unable to comply with
                Seamless Acceptance requirements by May 1, 2021 will be required to
                request an extension by February 1, 2021.
                Availability of Resources To Navigate Seamless Acceptance
                 Additional comments related to the available resources for industry
                to train and educate their staff.
                USPS Response
                 There are tremendous amounts of resources currently available to
                customers including web based searches on PostalPro and Postal
                Explorer. Fact sheets, process guides, and publications are available
                on those sites. Mailers may also reach out to the Mailing and Shipping
                Solutions Center (MSSC), PostalOne! or Facility Access & Shipment
                Tracking (FAST) helpdesks for information.
                ``Just in Time'' Payment and Auto Finalization Impact
                 Commenters wondered how auto finalization affects the balance of
                the permit when some clients of mail preparers pay just prior to
                mailing. Client's permits sometimes have insufficient funds on deposit.
                Is there a way for USPS to alert mail preparers when one of the client
                permits has insufficient funds?
                USPS Response
                 Auto finalization puts control in the mailers' hands. The process
                has not changed and sufficient funds must be in the account at the time
                of mailing. Under current standards specified in DMM Sec. 705.22.3,
                mailings accepted under Seamless auto finalize even if one of the
                permits in the mailing does not have sufficient funds in combined
                mailings. This allows mailings to be accepted without delay.
                eInduction Participation and Container Placard Requirement for Small
                Mailings
                 Two different comments were submitted seeking clarity on eInduction
                requirements for BMEU-entered mailings and potential impact on
                container requirements.
                USPS Response
                 No, BMEU mailers will not be required to participate in eInduction
                unless they elect to enroll in Seamless Acceptance. eInduction is a
                requirement of Seamless Acceptance for all drop shipment mailings. When
                the hardcopy PS 8125, Plant-Verified Drop Shipment (PVDS) would have
                been used. This allows mailers to enter mailings without using the
                hardcopy form. Mailers will continue to follow the current placarding
                under Publication 685, Publication for Streamlined Mail Acceptance for
                Letters and Flats available on PostalPro.
                Undocumented Mail and Postal Automated Redirection System (PARS)
                Operations
                 One comment stated that USPS is causing undocumented mail on the
                mailer's scorecard by changing the IMb on the mailpiece to start with
                ``93''.
                USPS Response
                 USPS does update mailpieces that go through PARS operations. These
                pieces will have their IMb ``Type'' updated to ``93'' and the Address
                (Delivery Point) information is changed to the new address. The changed
                IMb no longer matches the original IMb contained in eDoc. In the past,
                this resulted in the piece being erroneously reported as
                [[Page 27301]]
                undocumented. However, to keep these pieces from being reporting
                erroneously as undocumented in mailer scorecards, USPS implemented
                system logic to recognize that the ``93'' IMb type indicated a changed
                IMb. Prior to reporting a piece as undocumented, USPS drops the ``93''
                and New Address portion of the IMb and attempts to match the remainder
                of the original IMb--STID, MID, Serial Number--combination to an eDoc.
                Only if a match is not found with the remaining STID, MID, Serial
                Number combination would the piece be reported as undocumented.
                Mailers That Do Not Adopt Seamless Acceptance by July 1, 2021
                 One comment wanted to know what would happen if they did not adopt
                Seamless Acceptance by the July 1, 2021 deadline.
                USPS Response
                 USPS clarifies that there is no July 1, 2021 ``deadline'' for
                mailers. Rather, that is the date on which the Postal Service intends
                to begin verifying all Full-Service mailings entered at BMEUs using
                automated verification processes. BMEU mailers would not be required to
                prepare or enter their mail differently. All other mailings will
                continue to be verified using manual verification methods.
                USPS Should Create a Roadmap
                 One comment mentions that there used to be a roadmap and wanted to
                know if USPS has updated it and where it can be found.
                USPS Response
                 We have an updated Roadmap available, by searching ``CIO Roadmap''
                on PostalPro at: https://postalpro.usps.com/usps-roadmap#!/category/mail-acceptance-payment.
                List of Subjects in 39 CFR Part 111
                 Administrative practice and procedure, Postal Service.
                 The Postal Service adopts the following changes to Mailing
                Standards of the United States Postal Service, Domestic Mail Manual
                (DMM), incorporated by reference in the Code of Federal Regulations.
                See 39 CFR 111.1.
                 Accordingly, 39 CFR part 111 is amended as follows:
                 PART 111--[AMENDED]
                0
                1. The authority citation for 39 CFR part 111 continues to read as
                follows:
                 Authority: 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
                1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219,
                3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.
                0
                2. Revise the Mailing Standards of the United States Postal Service,
                Domestic Mail Manual (DMM) as follows:
                Mailing Standards of the United States Postal Service, Domestic Mail
                Manual (DMM)
                * * * * *
                700 Special Standards
                * * * * *
                705 Advanced Preparation and Special Postage Payment Systems
                * * * * *
                22.0 Seamless Acceptance Program
                22.1 Description
                 [Revise the text of 22.1 to read as follows:]
                 Seamless Acceptance leverages electronic documentation (eDoc) and
                Intelligent Mail barcodes (IMbs) on containers, handling units and
                mailpieces that full-service provides. Mailpiece scans collected from
                USPS mail processing equipment (MPE) and samples from hand held
                scanning devices are reconciled to the mailer eDoc to confirm proper
                mail preparation for the discounts claimed and postage paid. Seamless
                Acceptance is available for First-Class Mail cards, letters, and flats,
                Periodicals, USPS Marketing Mail letters and flats, and Bound Printed
                Matter flats.
                 [Revise the title and text of 22.2 to read as follows:]
                22.2 Seamless Participation
                 Mailers may initiate participation in the Seamless Acceptance
                Program by contacting a local BMEU or the PostalOne! Helpdesk at 1-800-
                522-9085.
                22.3 Basic Standards
                 [Add new heading 22.3.1, General, and move text from 22.3 as new
                22.3.1.]
                22.3.1 General
                * * * * *
                 [Revise the text of item c to read as follows:]
                 c. Participate in the Seamless Parallel Program under 22.3.2
                * * * * *
                 [Add new subsection 22.3.2 to read as follows:]
                22.3.2 Seamless Parallel Program
                 Detached Mail Unit (DMU) mailers and mailers that enter full-
                service mailings at a Business Mail Entry Unit (BMEU) must participate
                in the Seamless Parallel Program. Additional information on the
                Seamless Parallel Program is available in Publication 685, Publication
                for Streamlined Mail Acceptance for Letters and Flats, available at:
                https://postalpro.usps.com/StreamlinedMailAcceptLettersFlatsPub685.
                * * * * *
                23.0 Full-Service Automation Option
                * * * * *
                23.3 Fees
                23.3.1 Eligibility for Exception to Payment of Annual Fees and Waiver
                of Deposit of Permit Imprint Mail Restrictions
                 Mailers who present automation or presort mailings (of First-Class
                Mail cards, letters, and flats, USPS Marketing Mail letters and flats,
                or Bound Printed Matter flats) that contain 90 percent or more full-
                service eligible mail as full-service, and 75 percent of their total
                mail is eligible for full-service incentives, are eligible for the
                following exceptions to standards:
                * * * * *
                 [Revise the text of item c to read as follows:]
                 c. If any mailing falls under the 90-percent and 75-percent full-
                service thresholds for qualified full-service mailings, the annual
                mailing fee will be due and the mailing verification date will become
                the renewal or anniversary date of the permit fees. The full-service
                percentage will automatically set to 0 percent on each subsequent
                anniversary date. The first mailing presented after the anniversary
                date begins the cumulative process for the full-service percentage
                calculation. If the first mailing presented after the anniversary date
                is below 90 percent, the annual fee will need to be paid prior to the
                mail being finalized. Once the annual fees are paid, the next
                validation date will be the next anniversary date.
                 [Delete item c2 in its entirety:]
                * * * * *
                 We will publish an appropriate amendment to 39 CFR part 111 to
                reflect these changes.
                Joshua J. Hofer,
                Attorney, Federal Compliance.
                [FR Doc. 2020-08625 Filed 5-7-20; 8:45 am]
                 BILLING CODE 7710-12-P
                

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