[Federal Register Volume 60, Number 21 (Wednesday, February 1, 1995)]
[Proposed Rules]
[Pages 6047-6049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2255]



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POSTAL SERVICE

39 CFR Part 111


Shipper Paid Forwarding for Fourth-Class Mail

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to provide fourth-class mailers 
with an option to pay for the nonlocal forwarding of machinable fourth-
class mail when participating in automatic electronic address 
correction service. Those mailers requested this option to the current 
forwarding standards so that, if they choose, they can pay for the 
nonlocal forwarding of their customers' catalogs, books, merchandise 
and other fourth-class matter. The intended effects of this option are 
to increase mailer satisfaction with fourth-class mail; increase 
customer satisfaction by reducing the need to charge them postage-due 
for forwarded fourth-class mail, and for them to travel to the post 
office to get such pieces; and improve service by facilitating fewer 
handlings for such mail both in processing and in delivery.

DATES: Comments on the proposed rule must be received on or before 
March 3, 1995.

ADDRESSES: Mail or deliver written comments to the Manager, Parcels, 
Product Management, 475 L'Enfant Plaza SW., Room 5142, Washington, DC 
20260-2408. Copies of all written comments will be available for 
inspection and photocopying between 9 a.m. and 4 p.m., Monday through 
Friday, in room 5142, at the above address.

FOR FURTHER INFORMATION CONTACT: Stephanie Tolson, (202) 268-3149.

SUPPLEMENTARY INFORMATION: Currently parcels, catalogs, books, 
merchandise, etc., sent to customers who have moved outside their local 
area are forwarded to the new address, postage due. The applicable 
amount, based on the mailpiece's classification, weight, and the 
delivery zone of the new address, is collected from the recipient. 
Depending upon the customer's availability at time of delivery, the 
package may be: (1) Accepted and the postage collected, (2) refused and 
returned to the shipper requesting payment for the forwarding and 
return postage due and other applicable fees, (3) returned to the post 
office for re-delivery or customer pickup, or (4) disposed of by the 
Postal Service.
    Fourth-class mailers have requested that the USPS provide an option 
to this forwarding standard so that mailers can, if they choose, pay 
for nonlocal forwarding of their customers' parcels, catalogs, books, 
merchandise, etc.
    In view of these requests, the Postal Service and the fourth-class 
mailing industry jointly developed a proposal to meet the needs of 
large fourth-class shippers to provide nonlocal forwarding for mail 
sent to their customers. This optional service has been designated 
Shipper Paid Forwarding (SPF) and, as proposed, will operate through 
the existing electronic Address Change Service (ACS). As a result, SPF 
will be available only to mailers participating in ACS. Further, 
because of the limitations of the current ACS system, SPF will be 
offered at this time only for machinable parcels (i.e., parcels that 
are not subject to a nonmachinable surcharge if mailed at inter-BMC 
parcel post rates). The Postal Service will consider modifying the ACS 
system in the future to accommodate SPF for nonmachinable parcels if 
there is sufficient customer demand.
    As designed, SPF will allow the Postal Service to use the 
electronic systems developed for ACS and will piggyback on the existing 
fee billing and collection feature of ACS. Automatic electronic ACS 
notification will be provided for each forwarded package, subject to 
the ACS change notification fee (currently $0.20 per notice). Shippers 
will be able to use corrected address information immediately upon 
receipt to update mailing files and avoid additional forwarding 
charges.
    Participating ACS/SPF mailers will be required to provide the 
weight of the package in pound or half-pound increments (as appropriate 
for the rate claimed) and indicate the rate category of the mailpiece. 
This information will be imbedded as the first 4 characters of the 
customer information keyline. Based on the current ACS keyline, the 
ACS/SPF keyline is located in the address block and consists of 4 to 16 
characters (excluding spaces and delimiters), set off by pound sign (#) 
delimiters. In addition to the 4 characters of required postal 
information, up to 12 characters may be used for customer information, 
the last position serving as a check digit. (The required single-
character rate category codes will be provided to authorized SPF 
participants.) For example, the keyline on a 2.5-pound piece of basic 
bulk bound printed matter (code B) would begin as #025B, followed (if 
used by the mailer) by the individual customer information, a check 
digit, and a closing # delimiter.
    This proposed rule provides for an application and authorization 
process for ACS and for SPF. Upon approval of a new ACS/SPF application 
for this service, the mailer will be assigned a new 7-character ACS 
participation code specifically for use with SPF. Current ACS users 
must also request a new participation code to use the SPF service 
option. The ACS participation code must be preceded by a # delimiter.
    An authorized ACS mailer must place the endorsement ``Forwarding 
and Return Postage Guaranteed, Address Correction Requested'' and the 
correct keyline on each mailpiece for which SPF is requested. (A 
separate identifier code may be maintained and used by the mailer for 
pieces on which only ACS service is desired. The Postal Service will 
provide ACS or SPF, and charge the corresponding fees, based on the 
mailer's choice of codes.) As proposed, SPF will provide forwarding for 
1 year from the date that the recipient filed a change of address, and 
return (postage due) to the sender for 6 months more (i.e., for months 
13 through 18 after the addressee's move). Customers receiving SPF 
packages will see a message on the USPS-applied forwarding label 
reading ``FORWARDING POSTAGE PAID BY MAILER.'' The mailer will receive 
an electronic bill from the Postal Service's St. Louis Information 
Services Support Center that includes both forwarding postage and 
address correction notice fees. Other standards applicable to the 
forwarding, return, and address correction of fourth-class mail remain 
in force.
    In conjunction with this proposal, the USPS also announces a change 
in the ACS frequency in F030.2.2 from ``weekly or monthly'' to ``as 
requested by the mailer,'' reflecting the USPS [[Page 6048]] ability to 
provide ACS participants with address change information more 
frequently than as stated in the current standards.
    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 of the DMM, 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]

    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 units of the Domestic Mail Manual as noted 
below:

F010   Basic Information

* * * * *

5.0   TREATMENT OF CLASSES OF MAIL

* * * * *

5.4  Fourth-Class Mail

* * * * *

------------------------------------------------------------------------
   Mailer endorsement                      USPS action                  
------------------------------------------------------------------------
No Endorsement.........  Forwarded locally at no charge; out of town, as
                          postage-due. If undeliverable or addressee    
                          refused to pay postage, mailpiece returned    
                          with new address or reason for nondelivery,   
                          subject to forwarding (where attempted) and   
                          return postage.                               
Do Not Forward, Do Not   No forwarding or return service provided;      
 Return.                  mailpiece disposed of by USPS.                
Forwarding and Return    Forwarded locally at no charge; out of town, as
 Postage Guaranteed.      postage-due. If undeliverable or addressee    
                          refused to pay postage, mailpiece returned    
                          with new address or reason for nondelivery,   
                          subject to forwarding (where attempted) and   
                          return postage.                               
Forwarding and Return    Pieces from ACS Shipper Paid Forwarding        
 Postage Guaranteed,      participants: Forwarded locally and out of    
 Address Correction       town at no charge to addressee. If forwarded, 
 Requested (1).           separate address-correction notice provided,  
                          subject to address-correction fee and (if     
                          forwarded out of town) forwarding postage     
                          (billed to mailer). If mailpiece              
                          undeliverable, mailpiece returned with new    
                          address or reason for nondelivery, subject to 
                          return postage. Other pieces: Forwarded       
                          locally at no charge; out of town, as postage-
                          due. If forwarded, separate address-correction
                          notice provided, subject to address-correction
                          fee. If mailpiece undeliverable or addressee  
                          refused to pay postage, mailpiece returned    
                          with new address or reason for nondelivery,   
                          subject to forwarding (where attempted) and   
                          return postage.                               
Do Not Forward, Do Not   No forwarding or return service provided;      
 Return, Address          separate address-correction notice provided,  
 Correction Requested     subject to address-correction fee; mailpiece  
 (2).                     disposed of by USPS.                          
Do Not Forward, Address  No forwarding service provided; mailpiece      
 Correction Requested,    returned with new address or reason for       
 Return Postage           nondelivery, subject to return postage.       
 Guaranteed (3).                                                        
------------------------------------------------------------------------
(1) The authorized abbreviation for this endorsement is ``Forward &     
  Address Correction.'' This abbreviation is authorized where the full  
  endorsement cannot be accommodated.                                   
(2) The authorized abbreviation for this endorsement is ``Do Not Forward
  or Return--Address Cor.'' This abbreviation is authorized where the   
  full endorsement cannot be accommodated.                              
(3) The authorized abbreviation for this endorsement is ``Do Not        
  Forward--Address Cor-- Return Guar.'' This abbreviation is authorized 
  where the full endorsement cannot be accommodated.                    

* * * * *

6.0  ENCLOSURES OR ATTACHMENTS

* * * * *

6.3  Fourth-Class

    Undeliverable, unendorsed fourth-class mail with nonincidental 
First-Class Mail attachments or enclosures is forwarded, if requested 
by mailer endorsement, or returned at the applicable single-piece 
fourth-class rate. The weight of the First-Class attachment or 
enclosure is not included when computing the charges for return of the 
mailpiece. Undeliverable, unendorsed fourth-class mail with incidental 
First-Class attachments or enclosures is returned at the applicable 
single-piece fourth-class rate.
* * * * *

F020  Forwarding

* * * * *

3.0  POSTAGE FOR FORWARDING

* * * * *

3.6  Fourth-Class

    Fourth-class mail is subject to the collection of additional 
postage at the applicable rate for nonlocal forwarding if guaranteed by 
the sender or recipient. Unless endorsed ``Do Not Forward, Do Not 
Return,'' all fourth-class mail is delivered as directed without 
additional postage charged when the old and new addresses are served by 
the same post office. The addressee may refuse any piece of forwarded 
fourth-class mail without losing the right to have other fourth-class 
mail forwarded. If the addressee does not want to pay forwarding 
postage for all fourth-class mail, the addressee must ask the 
postmaster of the new address to use Form 3546 to notify the postmaster 
of the old address to discontinue the forwarding of fourth-class mail. 
(Such a request will not affect the forwarding of fourth-class mail 
sent by SPF participants, who pay forwarding postage under F030.)
* * * * *

F030  Address Correction, Address Change, and Return Services

* * * * *

2.0  ADDRESS CHANGE SERVICE (ACS)

2.1  Description

    ACS centralizes, automates, and improves the processing of 
participating mailers' requests for address-correction information by 
unique publication or mailer identifier. Address-correction records are 
sequentially organized by USPS-assigned codes and distributed to each 
participating mailer.

2.2  Shipper Paid Forwarding (SPF)

    An option available to ACS participants, SPF allows for the 
collection of forwarding and return postage from the sender by 
including those charges concurrently with ACS fees. Mail forwarded or 
returned under SPF remains subject to F010, F020, and 3.2. SPF may be 
requested only for parcels that, if mailed at inter-BMC parcel post 
rates, would not be subject to the nonmachinable surcharge. ACS/ 
[[Page 6049]] SPF requires USPS authorization under 2.3 and mailer use 
of a unique ACS/SPF identifier as part of an address block keyline. The 
keyline mail must be left-justified (below the optional endorsement 
line, if used), and must begin with a pound sign (#) delimiter, 
followed by the 4-character code indicating the weight and rate 
category of the piece, up to 12 characters of optional customer 
information (the last of which is a check digit), and a closing # 
delimiter. (ACS participants must use the specific ACS/SPF identifier 
and keyline format to participate in ACS/SPF.) For information, write 
to USPS ACS/SPF, National Customer Support Center.

2.3  Availability of ACS and ACS/SPF

    Where mail is marked with ACS symbols under M013, ACS and ACS/SPF 
are available to authorized mailers who maintain their address records 
on computers and whose mail bears the correct endorsement to obtain 
address correction and nonlocal fourth-class forwarding. ACS and ACS/
SPF are available on the frequency requested by the mailer. Because ACS 
and ACS/SPF are associated with USPS-computerized forwarding 
operations, these services are not available at all post offices. 
Information about ACS or SPF (including application) is available from: 
USPS Address Change Service, National Customer Support Center.

[Renumber existing 2.3 and 2.4 as 2.4 and 2.5, respectively; no change 
in text]
* * * * *

3.0  SENDER INSTRUCTION

* * * * *

3.2  Special Services

* * * * *
    e. Insured fourth-class mail without any other endorsement is 
forwarded at no charge locally and postage-due nonlocally if the 
recipient guarantees to pay forwarding postage. Insured fourth-class 
mail endorsed for ACS/SPF under 2.2 is forwarded at no charge to the 
addressee. (For forwarding, local means within the same post office.) 
If the article is undeliverable, the USPS returns it to the sender with 
the new address or the reason for nondelivery. The sender is charged 
for the return of the mailpiece and the attempted forwarding, when 
appropriate.
* * * * *

M013  Optional Endorsement Lines

* * * * *

2.0  FORMAT

2.1  Presort Identification

    Except when an address block barcode is placed above the optional 
endorsement line, the appropriate presort identification must be the 
first line at the top of the address block or label. Mailers 
participating in Address Change Service (ACS), including ACS with or 
Shipper Paid Forwarding (SPF), under F030 may use the first eight 
positions on the left side of the optional endorsement line for the ACS 
or ACS/SPF participant code (see Exhibit 2.1). Third-class mailers 
participating in the EX3C or BBM/SPMS measurement system may use the 
first 14 positions on the left side of the optional endorsement line 
for the measurement system code specified by the USPS for that program.
* * * * *

2.4  Non-ACS, Non-EX3C, and Non-BBM/SPMS Labels

    On labels not used with ACS (including ACS/SPF), EX3C, or BBM/SPMS, 
the optional endorsement line must be filled with asterisks from the 
left margin of the label or address block (as defined by the position 
of the first character printed in the address block or on the address 
label) up to the first character in the optional endorsement line.

2.5  ACS and ACS/SPF Labels

    On labels used with ACS or ACS/SPF, the delimiter # must be in the 
first position at the left margin of the optional endorsement line, 
followed by the seven-character ACS or ACS/SPF participation code 
assigned by the USPS; the remaining space between the code and the 
first character of the makeup information must be filled with 
asterisks. The keyline required on ACS/SPF mail under F030 must be 
left-justified below the optional endorsement line.
* * * * *
    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. 95-2255 Filed 1-31-95; 8:45 am]
BILLING CODE 7710-12-P