[Federal Register Volume 59, Number 138 (Wednesday, July 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-17714]


[[Page Unknown]]

[Federal Register: July 20, 1994]


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POSTAL SERVICE
39 CFR Part 111

 

Contents of Second-Class Mail

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposal would revise the present standards in the 
Domestic Mail Manual (DMM) on materials eligible for mailing at second-
class rates with authorized second-class publications. The proposal 
would remove the current advertising limitation on loose supplements to 
bound publications and adopt a more objective test for determining what 
material can be mailed as a supplement. The proposal would revise the 
regulations on pages with ``novel'' characteristics, giving publishers 
more latitude in page design. The provisions concerning the mailing of 
products and product samples have been liberalized. A new provision has 
been added specifying how advertising content of second-class 
publications is to be measured. A provision has also been added 
defining public service announcements. Finally, the proposal would 
reorganize and clarify a number of additional standards for second-
class mail concerning addressing, mailpiece construction, rate 
eligibility, and postage payment. These additional changes are 
editorial rather than substantive in nature.

DATES: Comments on this proposal must be received on or before 
September 19, 1994.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Business Mail Acceptance, U.S. Postal Service, 475 L'Enfant 
Plaza SW, Room 8430, Washington, DC 20260-6808. Copies of all written 
comments will be available for inspection and photocopying between 9 
a.m. and 4 p.m., Monday through Friday, at the above address.

FOR FURTHER INFORMATION CONTACT: Jerome M. Lease, (202) 268-5188, or 
Alixe Johnson, (312) 765-5487.

SUPPLEMENTARY INFORMATION: In the mid-1980s the Postal Service 
undertook an extensive review of the regulations governing what could 
be mailed as part of a periodical publication at second-class postage 
rates, with a special focus on supplements to second-class 
publications. Beginning in September 1986, the Postal Service published 
four proposed rules, culminating in a final rule that was published 2 
years later. 53 FR 35813 (September 15, 1988). The final rule explained 
that then-recent changes in technology--specifically the introduction 
of equipment making it practical to insert a publication into a sealed 
plastic wrapper (polybag)--made it possible for publishers of bound 
second-class publications to include with their publications additional 
materials that are separate and distinct from the publication. A number 
of publishers were in favor of taking advantage of this new technology, 
but others were concerned that allowing separately prepared material to 
be enclosed loose in a polybag at second-class rates would cause an 
undesirable movement of printed advertising materials from third-class 
mail to second-class mail.
    The Postal Service noted the difficulty in reaching an appropriate 
balance between the conflicting concerns and interests in this area, 
and was hopeful that the rulemaking would resolve these issues. To 
counter arguments that second-class mail would be harmed by the 
inclusion of too much advertising in the form of loose supplements 
riding along with bound second-class publications, the final rule 
adopted, among other things, requirements that a loose second-class 
supplement and its host bound publication must be enclosed in an 
envelope or wrapper, that the supplement must contain a minimum of 25 
percent nonadvertising content, and that the supplement must be marked 
``Supplement to'' followed by the name of the publication or the 
publisher.
    Although that rulemaking was at least partially successful in 
achieving its goals, experience over the past 6 years indicates that 
further revisions may be appropriate. Technological advancements, such 
as selective binding, continue to affect the design of publications, 
and publishers continue to seek to include materials with second-class 
publications that were not contemplated at the time the current 
regulations were adopted. Many publishers consider the 25 percent 
nonadvertising rule for loose supplements to be burdensome and 
inappropriate as a means of curbing the influx of advertising in 
second-class mail. Many publishers also consider the current 
restrictions on the use of pages with ``novel'' characteristics and the 
inclusion of products and product samples to limit unduly their 
creativity in designing publications that appeal to their readers and 
advertisers. These publishers also point out that private delivery 
companies do not impose similar restrictions on their delivery of 
publications.
    The most significant problem with the current regulations from the 
Postal Service's perspective is the difficulty in applying these 
standards. This problem is not limited to customers, but exists for 
postal personnel as well, as is demonstrated by the relatively large 
number of revenue deficiencies and decisions overturned on 
administrative appeal that concern the mailing of supplements, novelty 
pages, and products with second-class publications. This difficulty of 
application creates additional expense for the Postal Service in 
training and in mail acceptance, and it compromises the ability of the 
Postal Service to collect consistently the correct postage on second-
class mailings.
    Accordingly, the Postal Service undertook a review of the standards 
that pertain to the content of second-class mail. This included review 
of the terminology involved (e.g., supplements, enclosures, 
attachments, novelty pages, independent publications), the substantive 
rules concerning eligibility of these materials for second-class rates, 
the clarity of the existing rules, and the organization of these rules 
in the DMM. The result of this review is the instant proposal for 
substantive and editorial changes to, and deletion of a number of, 
existing rules with the renumbering and reorganizing of these rules for 
clarity and ease of use.
    The Postal Service believes that the proposed rules, if adopted, 
will reduce the costs of mail acceptance and training, and facilitate 
timely collection of the appropriate postage on second-class mailings. 
The Postal Service also believes that the proposed elimination of a 
number of restrictions on publication design will promote publishers' 
continued use of the Postal Service for delivery of their periodical 
publications. Moreover, the proposed changes are not expected to have 
any adverse operational effect on the Postal Service.
    To provide clarity and improve the organization of the mailing 
standards governing the contents and characteristics of second-class 
mail, Domestic Mail Manual (DMM) C200 has been completely reorganized 
and renumbered under four main headings: 1.0 Permissible Mailpiece 
Components, 2.0 Impermissible Components, 3.0 Mailpiece Construction, 
and 4.0 Printed Features. Within these sections are subsections that 
specifically identify what may and may not be included in a mailpiece 
claimed at second-class rates. The following discussion identifies the 
significant changes being proposed in C200.
    The reference to pages of a second-class publication in proposed 
C200.1.1 is new and describes those printed sheets that form the 
second-class mailpiece. Rather than addressing advertising and 
``novelty pages'' in separate standards (as is currently done in 
C200.5.0 and 6.0), this proposed section sets forth a general rule that 
provides that the pages in a second-class publication, whether they 
contain advertising or nonadvertising matter or both, may be prepared 
with novel or unusual characteristics, i.e., different size, shape, or 
construction. This proposed change would limit the number of these 
pages to a minor portion of the publication so that the general 
appearance of the material as a ``periodical publication'' is 
maintained. In proposing this greater latitude on the preparation of 
pages to a publication, the Postal Service is concerned that publishers 
might create publications whose physical characteristics would encumber 
efficient postal processing. Therefore, this provision includes a 
requirement that no page may have dimensions (when folded) that exceed 
the dimensions of the cover of the publication.
    In another change from current standards, this new pages section 
would allow the use of grommets, string, rubber bands, and similar 
types of fastening materials in minor amounts in the production of 
printed sheets. The Postal Service has concluded that allowing the use 
of minor amounts of these fastening materials in the preparation of 
pages is consistent with the existing practice of allowing second-class 
publications to be bound with staples, saddle stitching, or spiral 
binding.
    The mailing standards governing the preparation of parts and 
sections in proposed C200.1.2 remain unchanged, although current 
C200.2.0, 2.1, 2.2, and 2.3 have been condensed into one paragraph. The 
provision governing parts or sections produced by someone other than 
the publisher has been retained in 1.2 to preserve the distinction 
between parts and sections of a publication and supplements to a 
publication.
    Nonincidental enclosures at First- and third-class rates are 
covered in proposed C200.1.3, which is composed of former 8.1, 8.3b, 
8.4, 8.6, and 10.2. The wording has been changed for clarity.
    Proposed C200.1.4 incorporates current sections (C200.3.2, 3.3, 
7.1, 7.2, and 7.3) governing enclosures and attachments mailable at 
second-class rates. The last sentence of current 3.2f (proposed 
C200.1.4b) is deleted to remove the single-fold limitation on a printed 
sheet accompanying a receipt, request, or order for a subscription. The 
Postal Service does not believe that it is necessary to limit the 
method used by publishers in producing this material.
    The proposal allows all items listed in C200.1.4 as permissible 
second-class enclosures to be treated as neither advertising nor 
nonadvertising, but instead to be accounted for in the weight of the 
host publication when determining postage. This is a change in the 
interpretation of current rules that distinguish between the 
subscription order or requester form and any additional material that 
promotes the publisher's publications. Allowing these permissible 
enclosures to be accounted for only in the weight of the host 
publication will simplify the acceptance review process without any 
significant effect on postal revenues.
    The proposed supplements section in C200.1.5 would change the 
standard concerning loose supplements to bound publications to 
eliminate the current requirement that such a supplement contain at 
least 25 percent nonadvertising content. If adopted, this change would 
allow publishers to include loose supplements with bound publications 
that could consist of up to 100 percent advertising. This change is 
being proposed in response to widespread requests from publishers for 
an elimination of this provision. These publishers argue that this 
provision is an unnecessary restriction on their ability to choose 
whether to place advertising matter in the host publication or in an 
accompanying loose supplement. They argue that competitors of the 
Postal Service impose no such restrictions on the nonpostal delivery of 
publications. They also argue that the responses by some publishers to 
the 25 percent nonadvertising requirement (e.g., the use of such 
devices as public service announcements that say such things as ``Just 
Say No To Drugs'') demonstrate the uselessness of the provision as a 
means to increase the ``editorial'' content of second-class 
publications. These publishers argue that the overall requirement that 
second-class publications contain a substantial amount of 
nonadvertising content and the need to provide substantial editorial 
content to satisfy their subscribers are sufficient safeguards of the 
integrity and value of second-class mail. These publishers also 
correctly state that all advertising in supplements will be accounted 
and paid for at the advertising rates because the determination of a 
publication's advertising/nonadvertising content is based on the host 
piece and any supplements. The Postal Service finds that these 
arguments have merit and has determined to propose the elimination of 
the 25 percent nonadvertising content requirement for comment by all 
interested parties.
    The proposed supplements section also includes clarifying 
provisions, based on current standards and on Postal Service rulings, 
restricting the inclusion of loose sheets of advertising as a 
supplement. These provisions describe the permissible preparation of 
supplements for the four different methods of second-class mailpiece 
preparation--a bound publication not enclosed in a wrapper, a bound 
publication enclosed in a wrapper, and an unbound publication not 
enclosed in a wrapper, an unbound publication enclosed in a wrapper. 
Bound and unbound publications are defined in C200.3.1. The standards 
proscribing the use of mailing wrappers are set forth in C200.3.3 and 
3.4.
    A bound publication that is not enclosed in a wrapper may not have 
any supplements included loose with it. Only enclosures under C200.1.4 
may be included loose in a bound publication. A bound publication with 
one or more supplements must be enclosed in a wrapper. If a supplement 
to a bound publication is made up of more than one printed sheet, all 
sheets making up the supplement must be bound together to form one 
piece. If not, each loose sheet must separately qualify as a 
supplement. A supplement to an unbound publication that is not enclosed 
in a wrapper must be combined with, and inserted within, the 
publication. A loose supplement may be included with an unbound 
publication only if the entire mailpiece is enclosed in a wrapper.
    The proposed supplements section will retain the requirement that 
loose supplements to bound publications contain the identification 
``Supplement to'' followed by the name of the publication or the 
publisher. This requirement to identify a supplement will also apply to 
any loose supplement mailed with an unbound publication enclosed in a 
wrapper. The presence of the ``Supplement to'' statement is an 
objective demonstration that the publisher designed the material to be 
included as a supplement to the host publication. The Postal Service 
believes that the retention of this identification requirement, the 
retention of the general requirement in C200.4.3 that all 
advertisements in bound publications must be permanently attached, and 
the clarification in C200.1.5 that any multisheet supplement to a bound 
publication must also be bound together will effectively limit the 
inclusion of miscellaneous loose advertising pieces with second-class 
publications enclosed in wrappers.
    The section on attachments (proposed C200.1.8) consolidates the 
wording contained in current 4.3 pertaining to the addition of stickers 
on covers of second-class publications or on mailing wrappers. 
Additionally, proposed 1.8 includes information currently contained in 
10.1 and 10.4, regarding the required markings for nonincidental First- 
and/or third-class enclosures.
    Except for its movement from A200.2.0 to C200.1.10, the provision 
allowing label carriers remains unaltered. Placement in C200 is more 
appropriate for these standards because they will be with the sections 
governing what may be combined loose in a polybag or plastic wrapper 
and mailed at the second-class rates (a mailing practice that commonly 
uses a label carrier).
    Publishers have also complained about the subjective nature of the 
current standards concerning what material may not be included as a 
loose supplement at second-class rates. For example, current rules 
state that an independent publication may not be sent at second-class 
rates. Those rules then require the reviewer to determine the 
independence of material by making a subjective judgment based on a 
number of factors. Although the specified items (such as independent 
publications) remain ineligible for mailing at second-class rates (even 
if bound into publications), the Postal Service has undertaken to 
respond to publishers' concerns by explaining these restrictions more 
clearly. For this reason, proposed C200.2.1 sets forth a general 
standard that all the impermissible components in 2.2 to 2.5 are 
prohibited from being mailed at second-class rates whether they take 
the form of a run-of-press page, supplement, bound-in advertisement, or 
other component of the publication. Proposed C200.2.2 would base the 
decision on what constitutes impermissible matter on a review of the 
questionable material against a list of objective criteria, any one of 
which will automatically make that material ineligible for mailing at 
second-class rates. These criteria are a separate price or subscription 
instructions;theword``catalog'';aFirst-,
third-, or fourth-class permit imprint; an International Standard Book 
Number (ISBN); or an International Standard Serial Number (ISSN). The 
Postal Service believes that this change will simplify the 
determination of what constitutes impermissible second-class matter. 
This change is expected to benefit publishers by reducing the 
uncertainty and confusion they have experienced with regard to the 
current and more subjective standards.
    Current standards restrict the inclusion of products and product 
samples (see C200.1.8) in items mailed at the second-class rates. 
Proposed C200.2.3 would continue to exclude products, such as 
stationery, cassettes, and floppy disks, that are not printed sheets, 
but the proposed section would no longer prohibit product samples that 
are otherwise formed of printed sheets. The Postal Service believes 
that applying the general requirement that all second-class matter must 
be formed of printed sheets is a sufficient standard to limit the 
inappropriate mailing of products and product samples at second-class 
rates. Additionally, this section would relax current interpretations 
on what constitutes a product or merchandise when the item is a printed 
sheet. For example, under specific conditions, a 12-month calendar or a 
poster will now be eligible to be mailed at second-class rates if it is 
not separately distributed or offered for sale. Including the name of 
the host publication, issue or issue date, and relating such a piece to 
advertising or nonadvertising within the content of the host 
publication would provide further proof that the piece is properly 
prepared as a page of the publication.
    To ensure that second-class mail is transported and delivered 
intact, proposed C200.3.3 specifies what may be included loose within a 
second-class publication without requiring wrapping. For consistency, 
proposed C200.3.4 has been added to provide guidance on when wrappers 
are required.
    Proposed C200.3.5 includes all the standards governing protective 
covers in current C200.4.1. In recognition of the practicalities of 
publication production, the requirement that a protective cover cover 
completely a publication is changed to allow the cover to be smaller 
than the publication if it extends to within \3/4\ inch of the edge of 
the publication opposite the fold or binding. No similar allowance has 
been proposed for the top and bottom edges of a protective cover 
because the Postal Service has had no indication from publishers that 
there is any problem with covers matching a publication's top and 
bottom edges.
    The proposed advertising standard in C200.4.3 blends the contents 
of current C200.6.1 and 6.4 and explains that all advertisements must 
be prepared as an integral part of the publication and that, except for 
advertisements prepared as supplements and advertisements on printed 
matter included as part of a receipt or order for subscriptions (or 
requests), all advertisements in a bound publication must be 
permanently attached. The provision in current C200.6.3 concerning the 
types of material that can comprise printed sheets has been moved to 
E211.3.0, the eligibility section that includes the printed sheet 
standard.
    Additionally, several new proposed sections have been added to 
provide clarifying definitions, such as C200.1.6 (covers), 1.7 (mailing 
wrappers), and 3.1 (bound/unbound). Other sections have been proposed 
to clarify further what is allowable and what is excluded at second-
class rates, e.g., the proscription against combining fourth-class mail 
with second-class mail.
    The proposed rule also contains an expanded definition of public 
service announcements in E211.11.2, to clarify those announcements that 
do not have to be treated as advertising matter. An expanded standard 
explaining procedures to be followed when measuring advertising in 
second-class publications is proposed in new P070.1.7. This provision, 
which is based on Postal Service rulings, is designed to ensure uniform 
treatment of blank space in publications. Section E211.7.3 has been 
revised to clarify that materials such as annual reports, directories, 
and lists may be included as supplements to second-class publications. 
Minor nonsubstantive changes have also been proposed to DMM modules A, 
E, and P.
    Although exempt from the notice and comment provisions of the 
Administrative Procedures Act (5 U.S.C. 553(b) and (c)) regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
public comments on the following proposed amendments of the Domestic 
Mail Manual, which is incorporated by reference in the Code of Federal 
Regulations. See 39 CFR part 111.1.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 remains 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. Renumber existing Domestic Mail Manual A200.1.0 (including 
Exhibit 1.3) as A010.7.0; renumber subsections accordingly and revise 
as shown below; delete remainder of existing A200.

A010  General Information

* * * * *
7.0  ADDITIONAL STANDARDS FOR SECOND-CLASS MAIL

7.1 Preparation

[Insert text of existing A200.1.1.]

7.2  Address Labels

[Insert text of existing A200.1.2.]

7.3  Address Placement

    The delivery address must be clearly visible on or through the 
outside of the mailpiece, whether placed on a label or directly on the 
host publication, a component, or the mailing wrapper. If placed on the 
mailing wrapper, the address must be on a flat side, not on a fold (see 
Exhibit 7.3). If a polybag is used, the address must not appear on a 
component that rotates within the bag, and the address must remain 
visible throughout the addressed component's range of motion.

7.4  Return Address

    The return address must appear on any mailing wrapper that is also 
endorsed ``Return Postage Guaranteed.''
    3. Revise all Domestic Mail Manual C200, Second-Class Mail, to read 
as follows:

C200  Second-Class Mail

1.0  PERMISSIBLE MAILPIECE COMPONENTS

1.1  Pages

    Pages are the printed sheets forming the publication or one of the 
mailpiece's components, bearing advertising, nonadvertising, or both, 
including those having textual and graphic matter (see E211.2.4); blank 
spaces for writing or marking; and material to be completed or used by 
the reader. A minor portion of the pages in a second-class mailpiece 
may have unusual characteristics, such as a different size, shape, or 
construction, or portions that may be wholly or partially separable; 
and pages prepared for folding out. No page may have dimensions (when 
folded, if folded) that exceed the dimensions of the cover of the 
publication. Pages are also subject to these standards:
    a. A detachable coupon, application, or order form must relate 
directly to advertising or nonadvertising matter printed on the page of 
which it is a part or to which it is attached.
    b. Multilayer pages, including those formed by sheets glued 
together and those that have unusual shapes, such as cutouts, movable 
flaps, or ``pop-ups,'' may include small amounts of fastening material 
such as grommets, string, or rubber bands as needed to assemble the 
page. Multilayer pages may also be formed as pouches or pockets but may 
contain only permissible loose enclosures (see 1.4) or other securely 
affixed permissible components.
    c. Multiple pages may be held together by staples or other means 
separate from and in addition to the regular binding of the 
publication.
    d. Oversized pages may be used for illustrations, charts, maps, and 
other advertising and nonadvertising content.

1.2  Parts and Sections

    Parts and sections are pages (subject to 1.1) that are physically 
separate subdivisions of the publication, as identified by the 
publisher. Each part or section must show the name of the publication, 
and the number of parts or sections in the issue must be stated on the 
cover of the first part or section. Parts or sections produced by 
someone other than the publisher may not be mailed at second-class 
rates if these parts or sections are prepared by or for advertisers or 
if they are provided to the publisher free or at a nominal charge. On 
request, publishers must submit to the RCSC serving the known office of 
publication contracts entered into with producers of parts or sections.

1.3  Enclosures at First- or Third-Class Rates

    Matter to be paid at the applicable First- or third-class rate may 
be enclosed in a second-class mailpiece subject to these conditions:
    a. The total weight of all enclosed third-class matter must be less 
than 16 ounces.
    b. Postage and fee payment is subject to P070. A permit imprint 
that may appear on a First- or third-class enclosure must not be 
visible when the mailpiece is prepared for mailing except as provided 
under P070.
    c. When enclosing nonincidental First- or any third-class mail, 
combination envelopes or containers with separate parts for the two 
classes of mail may be used. If both the sender's and addressee's names 
and addresses are not on both pieces, the sender's name and address 
must be placed on one and the addressee's name and address on the 
other. Combination containers with inseparable parts may bear the names 
and addresses on only one part.
    d. The applicable ``First-Class Mail Enclosed'' or ``Third-Class 
Mail Enclosed'' marking must be placed on or in the host publication if 
it contains a nonincidental First- or third-class enclosure. If placed 
on the outer wrapper, polybag, envelope, or cover of the host 
publication, the marking must be set in type no smaller than any used 
in the required ``POSTMASTER: Send change of address . . .'' statement. 
If placed in the identification statement, the marking must meet the 
applicable standards. The marking must not be on or in copies not 
accompanied by a First- or third-class enclosure unless additional 
information is provided under the applicable postage payment standards 
in P070.

1.4  Enclosures at Second-Class Rates

    Only the following material may be included loose as an enclosure 
in a second-class mailpiece and be paid at second-class rates, subject 
to the corresponding conditions:
    a. An incidental First-Class piece that must be closely related but 
secondary to the second-class publication with which it is enclosed, 
and that consists of matter that, if mailed separately, would require 
First-Class postage. Examples of an incidental First-Class enclosure 
are a bill for the publication, a statement of account for past 
publication purchases, or a personal message or greeting included with 
the publication.
    b. A receipt, request, or order for a subscription that may be 
printed or written; prepared as a card or envelope, including business 
reply, or as a combination form for the host and one or more second-
class publications issued by the same publisher; arranged to include a 
coin receptacle; and inserted in an envelope within the publication. 
The receipt or request may be part of or accompanied by a single sheet 
of printed matter containing information related exclusively to a 
receipt or request or order for a subscription to the host second-class 
publication (or a combination of the host and other second-class 
publications of the same publisher), if that printed matter does not 
advertise, promote, or offer for sale other products or services.
    c. A card or form for the recipient's use in providing address 
correction information to the publisher that may be printed or written; 
prepared as a card or envelope, including business reply, or as a 
combination form for two or more second-class publications issued by 
the same publisher; inserted in an envelope that is attached to, bound 
in, or loose within the publication; or prepared as a detachable part 
of another permissible enclosure. Enclosures listed in 1.4b and 1.4c 
are not counted when determining the percentage of advertising in the 
publication, but they are included in the total weight of the 
publication reported on the mailing statement. If the publication 
otherwise consists entirely of nonadvertising matter, an incidental 
First-Class enclosure as described in 1.4a may be treated as 
nonadvertising matter. In all other cases, an incidental First-Class 
enclosure is considered part of the advertising portion of the 
publication.

1.5  Supplements

    A supplement is one or more pages (subject to 1.1) formed by one or 
more printed sheets that are not bound into a publication. A bound 
publication with one or more supplements must be enclosed in a wrapper 
(see 3.3 and 3.4). If a supplement to a bound publication is formed of 
more than one sheet, all sheets comprising the supplement must be bound 
together. Except where the mailpiece is enclosed in a wrapper (see 
3.4), a supplement to an unbound publication must be combined with, and 
inserted within, the publication. A loose supplement may be included 
with an unbound publication only if the mailpiece is enclosed in a 
wrapper (see 3.4). A supplement may be devoted to a single topic, and 
may contain material different from that in the host publication. The 
external dimensions of a supplement (i.e., its length and height) may 
not exceed those of the host publication. Each supplement to a bound 
publication and loose supplements included with unbound publications 
must bear the printed endorsement ``Supplement to'' followed by the 
name of the publication or publisher.

1.6  Covers

    A cover may be placed on the outside of a second-class publication. 
A protective cover is an additional cover placed around the outside of 
a publication; preparation is subject to 3.5. Advertising, 
nonadvertising, or both may be printed on the cover or protective 
cover. The cover and protective cover on a publication are included 
when measuring advertising percentage. Nothing may be attached to the 
cover or protective cover except as permitted under 1.8.

1.7  Mailing Wrappers

    A mailing wrapper is an envelope, sleeve, or polywrap used to 
enclose the mailpiece. Advertising may be printed on the mailing 
wrapper and is included when measuring advertising percentage. Nothing 
may be attached to the mailing wrapper except as permitted under 1.8.

1.8  Attachments

    The following may be attached to a page, cover, protective cover, 
or mailing wrapper of a publication, subject to the corresponding 
standards:
    a. Stickers of any size and shape. If attached to the cover, 
protective cover, or mailing wrapper, no portion of the publication's 
name may be obscured.
    b. Material that is allowed as a loose enclosure described in 1.3 
or 1.4. When nonincidental First- and/or third-class enclosures (see 
1.3) are attached, the marking ``First-Class'' or ``Letter Enclosed'' 
must be on a First-Class attachment; ``Third-Class,'' on a third-class 
attachment.

1.9  Printed Additions

    Only the following may be printed on a copy of a second-class 
publication after it is printed, or placed on its cover, protective 
cover, or mailing wrapper:
    a. The name and address of the intended recipient or of the 
publisher or sender.
    b. The printed title of the publication and its place of 
publication.
    c. The date the subscription ends.
    d. Requests for address-correction information from the addressee.
    e. The words ``Sample Copy'' (on a sample), ``Marked Copy'' (when 
the copy contains a marked item or article), or ``Return Postage 
Guaranteed'' (when the copy is to be returned to the sender if 
undeliverable as addressed).
    f. The number of copies enclosed (on the outside of a package) or a 
package count (e.g., ``2 of 4'') (on a package wrapper).
    g. Corrections of typographical errors or a mark, except by written 
or printed words, to call attention to a word or passage.
    h. Printed messages not required to be mailed as First-Class or 
Express Mail.

1.10  Label Carriers

    A label carrier is a single unfolded, uncreased sheet of card or 
paper stock, securely affixed to the cover of the publication or large 
enough so that it does not rotate inside the wrapper or cover the 
publication title (if placed over the front cover), that is used to 
carry the delivery address for the mailpiece, subject to these 
conditions:
    a. It must bear the title of the second-class publication; the 
second-class imprint or ``Second-Class'' endorsement in the upper right 
corner of the address side (unless ``Second-Class'' is printed on the 
address side of the polybag); and the address to which the mailpiece 
can be returned if undeliverable (if endorsed ``Return Postage 
Guaranteed'').
    b. If the address remains clearly visible, the label carrier may 
also bear a request for address correction from the addressee; 
information for requesting or subscribing to the publication; or a 
subscription or request form.
    c. As applicable, the label carrier may show the endorsement 
``First-Class Mail Enclosed'' or ``Third-Class Mail Enclosed'' or the 
permit imprint used to pay postage for the First- or third-class 
enclosure if the imprint is below the second-class imprint or the 
endorsement ``Second-Class.''
    d. Other printed information, whether advertising or 
nonadvertising, is permitted only on the back of the label carrier and 
is subject to measurement and postage payment accordingly. A single 
line of text calling attention to information on the reverse may be 
placed on the front of the label carrier. If any information on the 
reverse of the label carrier is advertising, the line of text on the 
front is also treated as advertising.
2.0  IMPERMISSIBLE COMPONENTS

2.1  General Standard

    Regardless of preparation or characteristics, or whether otherwise 
meeting the standards in 1.0, the materials described in 2.2 through 
2.5 are not eligible for second-class rates and may not form, or be 
included, in a second-class mailpiece.

2.2  Prohibited Matter

    Material that either contains any one of the following printed 
items, or that is referred to in a component of the second-class 
mailpiece (by the use of one of these items), is ineligible to be 
mailed at second-class rates:
    a. A separate price or subscription instructions different from the 
host publication.
    b. The word ``Catalog.''
    c. A First-, third-, or fourth-class permit imprint.
    d. An ISBN (International Standard Book Number).
    e. An ISSN (International Standard Serial Number) different from 
the ISSN of the host publication.

2.3  Products

    Products may not be mailed at second-class rates. Examples include 
stationery (pads of paper or blank printed forms); cassettes; floppy 
disks; merchandise; envelopes containing enclosures, other than 
receipts, orders for subscriptions, and incidental First-Class matter; 
and wall, desk, and blank calendars. Printed pages, including oversized 
pages and calendars, are not considered products if they are not 
separately distributed or offered for sale, bear the name of the host 
publication and the issue or issue date, and relate to other 
advertising or nonadvertising content of the host publication.

2.4  Fourth-Class Mail

    Fourth-class mail may not be combined with a second-class 
publication.

2.5  Nonprinted Sheets

    Any matter not formed of printed sheets (except as permitted under 
1.1b) is not eligible for second-class rates.
3.0  MAILPIECE CONSTRUCTION

3.1  Bound/Unbound

    Publications may be prepared in either a bound or unbound form, 
with or without wrappers unless required by 3.6. A bound publication is 
a publication whose pages are securely held together by two or more 
staples, spiral binding, glue, stitching, or other permanent fastening. 
All other publications are unbound, including folded multisheet and 
single-sheet publications and those whose pages are loose and collated 
or ``nested,'' or whose pages are held together by a single staple.

3.2  Physical Size

    Standards for size or weight may apply to publications claimed at 
certain rates. Requester publications must contain at least 24 pages 
per issue.

3.3  Without Wrapper

    When the mailpiece does not have a mailing wrapper, all the 
components of an unbound publication must be combined with and inserted 
inside the publication. Only enclosures mailable at second-class rates 
under 1.4 may be included loose inside a bound unwrapped publication. 
An enclosure under 1.3 or 1.4 may be securely attached on the outside 
of an unwrapped publication along the bound edge if it does not exceed 
any dimension of the cover of the publication.

3.4  With Wrapper

    Except as provided in 4.1, when the mailpiece is completely 
enclosed in a mailing wrapper, there are no restrictions on where the 
components may be located within that wrapper. When a sleeve or other 
partial wrapper is used, the components must be secured so that they do 
not fall out during handling. Bound publications carrying loose 
supplements or prepared in physically separate parts or sections either 
must be totally enclosed in an envelope, plastic wrapper (polybag) or 
paper wrapper, or they must be inserted within a sleeve so that the 
component parts do not become separated while in the mail.

3.5  Protective Cover

    If the mailpiece is not completely enclosed in a mailing wrapper, 
any protective cover must cover both the front and back of the host 
publication and extend to within at least \3/4\ inch of the edge 
opposite the fold or binding. If the host publication is bound, the 
protective cover must be permanently attached to the publication.

3.6  APO/FPO Copies

    Any single copy of an unbound publication that includes any 
enclosures, supplements, or more than one part or section and that is 
mailed to an APO/FPO address must be completely enclosed in a mailing 
wrapper.

3.7  Sealing

    Second-class mail must be prepared so that it can be easily 
examined. Mailing publications at second-class postage rates represents 
consent by the sender to USPS inspection of the contents whether loose 
or inserted in envelopes, wrappers, or other covers. Mailers who want 
to ensure that publications are not opened for postal inspection must 
pay First-Class rates and mark such mail accordingly.
4.0  PRINTED FEATURES

4.1  Publication Name; Notices

    The publication name must be displayed prominently on the 
publication, and the name must be visible through or displayed 
prominently on any protective cover or mailing wrapper. The publication 
name, followed immediately by the USPS publication number, and the 
mailing address to which undeliverable copies or change-of-address 
notices are to be sent, may be shown in the upper left corner of the 
address side of a mailing wrapper, or directly on the outside of the 
host publication if it can be read when the mailing wrapper is in 
place. The publication number includes an alpha prefix and is to be 
within parentheses, e.g., THE NATIONAL WEEKLY (ISSN 9876-543X) or THE 
COMMUNITY (USPS 123-456).

4.2  Endorsements

    Mailing wrappers that completely enclose the host publication must 
bear the words ``Second-Class'' in the upper right corner of the 
address area. If a clear plastic wrapper is used, those words may 
appear anywhere on the address side of the wrapper or the topmost item 
inside.

4.3  Advertising

    Advertising (as defined in E211) may be printed on the pages of any 
component of a publication, subject to the corresponding standards. 
Regardless of location, an advertisement must be prepared as an 
integral part of the publication. Except for advertisements in 
supplements, and on printed matter included as part of a receipt or 
order for subscriptions (or requests), all advertisements in a bound 
publication must be permanently attached. Except as provided in 
C200.1.4d, all advertising must be included in the advertising portion 
of the issue measured under P200. Different advertising may occupy the 
same space in different editions of the same issue.

4.4  Marking of Paid Reading Matter (18 USC 1734)

    If a valuable consideration is paid, accepted, or promised for the 
publication or any editorial or other reading matter in a second-class 
publication, that matter must be plainly marked ``advertisement'' by 
the publisher. When a single item of paid editorial or other reading 
matter occupies more than one page, it need only be marked 
``advertisement'' on the first page. The word ``advertisement'' may be 
included in a statement that explains why the material is marked 
``advertisement.'' Such a statement must be prominent on the first page 
of the material and the word ``advertisement'' in the statement must be 
in bold or italicized print, or otherwise emphasized so that it can be 
plainly seen. Editors or publishers who print such matter without 
plainly marking it ``advertisement'' are subject to a fine of not more 
than $500.
    4. Revise Domestic Mail Manual E211, Standards Applicable to All 
Second- Class Mail, to read as follows:

E211  Standards Applicable to All Second-Class Mail

* * * * *
3.0  PRINTED SHEETS
[Insert the following after the first sentence:]

    Sheets may be die cut or deckle-edged and may be made of paper, 
cellophane, foil, or other similar materials.
* * * * *
7.0  ISSUES
* * * * *

7.3  Contents

    Issues may include annual reports, directories, lists, and similar 
material prepared as supplements (see C200).
* * * * *
9.0  BACK NUMBERS AND REPRINTS
    Second-class rates may be paid on mailings of back issues (if the 
publication's second-class entry is in effect); reprint copies of daily 
publications printed within 1 week of the issue date; and reprint 
copies of other than daily publications printed before the next issue 
is printed. Other mailings of reprint or back issues, including 
permanently bound reprint or back issues, are subject to the applicable 
First-, third-, or fourth-class rates.
* * * * *
11.0  ADVERTISING STANDARDS
* * * * *

11.2  Public Service

    Public service announcements are announcements for which no 
valuable consideration is received by the publisher, which do not 
include any matter related to the business interests of the publisher, 
and which promote programs, activities or services of federal, state, 
or local governments or of nonprofit organizations, or matters 
generally regarded as in the public interest. Public service 
announcements are not treated as advertising.
* * * * *
    5. Revise Domestic Mail Manual P070, Mixed Classes, to read as 
follows:

P070  Mixed Classes

* * * * *
2.0  ENCLOSURES IN SECOND-CLASS PUBLICATIONS
* * * * *
[Delete existing 2.4; renumber succeeding sections accordingly.]
* * * * *

2.8  Computing Permit Imprint Postage

[Renumber as 2.7 and insert the following after the first sentence:]

    The enclosure is eligible for the rate for its class of mail that 
is most comparable to the presort, automation, and destination 
discounts that apply to the second-class host piece. For example, a 
third-class enclosure is eligible for the SCF entry discount if the 
publication is deposited at the destinating SCF. When more than one 
enclosure of the same class of mail is enclosed with a publication, 
they are treated as a single enclosure for computing postage.
* * * * *
    6. In Domestic Mail Manual P200, Second-Class Mail, renumber 
existing 1.7 through 1.11 as 1.8 through 1.12, respectively; delete 
existing 2.3; renumber 2.4 and 2.5 as 2.3 and 2.4, respectively; add 
new 1.7 to read as follows:

P200  Second-Class Mail

1.0  BASIC INFORMATION
* * * * *

1.7  Measuring Advertising

    The total advertising and nonadvertising portions may be determined 
by column inches, square inches, pages, or by another recognized unit 
of measure, if the same unit of measure is used for both. One full page 
of advertising must equal one full page of nonadvertising regardless of 
the amount of blank space between each advertisement or nonadvertising 
article on a page. If measured in column inches, nonadvertising inches 
are determined by subtracting the total measured advertising inches 
from the total column inches of the publication. A blank page, portion 
of a page, or blank border or margin is counted as advertising if 
consideration was received for the whole page, the blank portion, or 
the blank border or margin. The border of a page is otherwise 
considered neither advertising nor nonadvertising and is not measured, 
but it is included in the total weight of the publication for purposes 
of postage calculation. When measuring nonrectangular sheets, the 
measurement is based on the smallest rectangle that could contain the 
irregular sheet; exact measurement is not attempted. When two or more 
sheets or parts thereof are glued together, the surface area of each 
sheet (front and back) is included when measuring the advertising or 
nonadvertising portion.
* * * * *
    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. 94-17714 Filed 7-18-94; 9:21 am]
BILLING CODE 7710-12-P