[Federal Register Volume 60, Number 36 (Thursday, February 23, 1995)]
[Rules and Regulations]
[Pages 10021-10029]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-4333]



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POSTAL SERVICE

39 CFR Part 111


Contents of Second-Class Mail

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: On July 20, 1994, the Postal Service published a proposed rule 
for public comment in the Federal Register (59 FR 37011-37018) that 
would revise the current standards in the Domestic Mail Manual (DMM) on 
materials eligible for mailing at second-class rates with authorized 
second-class publications. This final rule adopts most of the proposed 
changes to the standards governing the contents and characteristics of 
second-class mail.
    The final rule adopts the proposed objective criteria for 
determining which materials may be mailed at second-class rates, 
revises the regulations on pages with``novel characteristics,'' and 
liberalizes the standards governing the mailing of products and product 
samples. The final rule adds instructions specifying how advertising 
content is measured and a new definition of public service 
announcements. The Postal Service has decided not to adopt the proposal 
to remove the current advertising [[Page 10022]] limitation on loose 
supplements to bound publications.

EFFECTIVE DATE: March 27, 1995.

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

SUPPLEMENTARY INFORMATION: The proposed rule discussed in detail 
efforts on the part of the Postal Service in recent years to adopt 
standards that satisfy and protect the interests of both the mailing 
public and the Postal Service regarding the mailing of additional 
materials, such as supplements, at second-class rates. Changes in 
technology, such as a publisher's ability to enclose a publication with 
supplemental materials in a polybag, have led to a renewed debate over 
the limits to which the standards should allow loose pieces, such as 
advertising supplements, to be mailed with a publication at second-
class rates. Difficulty in consistent interpretation of the current 
standards has been a major concern for the Postal Service. This 
difficulty has required the need for additional Postal Service 
resources for training and mail acceptance and has compromised the 
ability of the Postal Service to consistently collect the correct 
postage on second-class mail.
    At the behest of the second-class mailing industry, the Postal 
Service agreed to review the standards governing the contents of 
second-class mail and solicit public comment on proposed changes. As a 
result, the Postal Service published the proposed rule on July 20, 
1994.
    The comment period ended on September 19, 1994, and 27 written 
comments were received from interested associations, publishers, and 
individuals. Having given thorough consideration to these comments, the 
Postal Service is now publishing its final rule. This final rule 
completely reorganizes and renumbers DMM C200, using a format with four 
main headings (as described in the proposed rule): 1.0 Permissible 
Mailpiece Components, 2.0 Impermissible Mailpiece Components, 3.0 
Mailpiece Construction, and 4.0 Printed Features. Following this new 
format, each section and the comments applicable to that section are 
summarized and discussed below. Affected sections of modules A, E, and 
P of the DMM are also listed and discussed in detail.
    Not specifically discussed below is one comment received that 
stated general acceptance of the entire proposal. In addition, one 
comment was received requesting that the Postal Service amend the 
mailing standards governing carrier route second-class mail. This 
comment is outside the scope of this rulemaking and is not addressed in 
the final rule. One commenter noted an error in proposed C200.4.3 
referring to an exception in C200.1.4d although no subsection C200.1.4d 
was shown in the proposal. This omission is corrected in the final 
rule.

Discussion of Comments

Additional Standards for Second-Class Mail (A010.7.0)

1. Preparation (A010.7.1)
    This section, which provides the basic standards for addressing 
second-class mail, is moved intact from current A200.1.1. No comments 
were received. The proposal is adopted.
2. Address Labels (A010.7.2)
    Current text from A200.1.2 forms this new section. No comments were 
received. The proposal is adopted.
3. Address Placement (A010.7.3)
    Current A200.1.3 is also relocated to these general standards for 
addressing second-class mail. The section is revised for clarity. No 
comments were received. The proposal is adopted.
4. Return Address (A010.7.4)
    Instructions on mail requiring a return address when it is endorsed 
``Return Postage Guaranteed'' are relocated from current A200.1.4. No 
comments were received. The proposal is adopted.

Permissible Mailpiece Components (C200.1.0)

5. Pages (C200.1.1)
    One commenter expressed concern over the proposed language that 
states, in part, ``no page may have dimensions (when folded, if folded) 
that exceed the dimensions of the cover of the publication.'' This 
commenter was concerned about covers that are slightly shorter than the 
full dimensions of the publication. The Postal Service believes that 
this commenter's concern has merit. The Postal Service has removed the 
reference to the cover of the publication. The pertinent phrase now 
reads ``that exceed the dimensions of the publication.'' Three 
commenters remarked favorably on proposed language that would allow 
small amounts of fastening material such as grommets, string, or rubber 
bands when used to assemble a page. No negative comments were received. 
The proposed language is adopted with the revision noted above.
6. Parts and Sections (C200.1.2)
    Although no substantive change concerning parts or sections was 
proposed, four commenters offered remarks on the reorganized language 
that carries forward the standards governing parts and sections. These 
commenters suggested that the language providing that ``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'' is unnecessary and/or confusing and should be 
eliminated. This language essentially prohibits parts or sections 
produced for advertising purposes. Such parts or sections have 
historically been restricted from second-class eligibility and that 
restriction remains in place. The Postal Service believes that the 
language in question is useful in making it clear that pieces that are 
not eligible as supplements may not be prepared as parts or sections in 
order to qualify for mailing at second-class rates. The language is 
also useful in providing a clear distinction between parts and sections 
and other components such as supplements. The proposed language is 
adopted with a minor revision providing that any postal official, not 
just the rates and classification service centers, may request 
publishers to submit contracts entered into with producers of parts or 
sections.
7. Enclosures at First- or Third-Class Rates (C200.1.3)
    This section clarifies the standards governing enclosures at First- 
or third-class rates. No comments were received. The proposal is 
adopted.
8. Enclosures at Second-Class Rates (C200.1.4)
    Three commenters favored the proposed language clarifying that 
permissible enclosures allowable at second-class rates are not counted 
when determining the percentage of advertising in a second-class 
publication, but instead are included in the total weight of the 
publication reported on the mailing statement, either PS Form 3541-R or 
PS Form 3541-N. Another commenter suggested that the section allowing a 
receipt or request for a subscription to be accompanied by a single 
sheet of printed matter containing information related exclusively to 
it (proposed C200.1.4b) be revised to permit two separate sheets rather 
than one. The revision to DMM language that allowed for a separate 
single sheet was in [[Page 10023]] response to industry requests for 
production flexibility, particularly to allow extended forms to be 
divided into two separate sheets (e.g., order form and related 
promotional information). See Postal Bulletin 21848 (August 19, 1993). 
The Postal Service believes that it is inconsistent with the limited 
nature of loose enclosures to consider allowing any additional material 
as enclosures. The section is adopted as proposed.
9. Supplements (C200.1.5)
    The proposed rule explained in detail the concerns expressed by 
many publishers over a course of several years regarding the mailing 
standard requiring that 25% nonadvertising content be included in all 
loose supplements to bound second-class publications. Publishers have 
asserted that this requirement is a burden to the industry and 
unnecessarily restricts publishers from including desired advertising 
and other supplemental materials with the host publication. At the 
urging of those publishers, the Postal Service agreed to propose, for 
public comment, elimination of the 25% nonadvertising requirement for 
loose supplements to bound second-class publications. Two commenters 
offered historical reviews of the regulations concerning second-class 
supplements to support their position that relaxing the current 
standard would damage the integrity of second-class mail. These 
commenters were joined by eight other commenters who also opposed 
eliminating the 25% nonadvertising requirement. Most often the reason 
given was that the elimination of this requirement could diminish the 
distinction between second-class and other classes of mail and 
eliminate the preferential rate treatment accorded to second-class 
mail. In one commenter's opinion, postal operations would also be 
negatively impacted because more publishers would use polywrapping.
    On the other hand, seven commenters offered support for the 
elimination of the 25% nonadvertising requirement, although some 
expressed concern about the continued viability of second-class mail if 
safeguards are not taken to monitor second-class mailings strictly to 
ensure that typical third-class matter not be allowed to be mailed at 
second-class rates. For the most part, these seven commenters viewed 
the elimination of the 25% nonadvertising requirement as an improvement 
and believed that the overall limit on advertising is adequate to 
protect the integrity of second-class mail.
    The comments received on the elimination of the 25% nonadvertising 
requirement indicate that there is no consensus within the second-class 
industry on this proposal. Based on this lack of consensus, the Postal 
Service has concluded that there is insufficient support for a change 
to the existing standards at this time. Thus, the Postal Service will 
retain the 25% nonadvertising requirement for loose supplements to 
bound second-class publications.
    Eight commenters supported the retention of the ``Supplement to'' 
endorsement requirement as a safeguard against the inclusion of third-
class material being carried as a supplement. One commenter favored the 
complete elimination of the ``Supplement to'' endorsement. The Postal 
Service believes that it is necessary to retain the ``Supplement to'' 
requirement as an indication that the material was designed for 
inclusion with the publication. Therefore, this part of the rule is 
adopted as proposed. Six commenters requested that the Postal Service 
clarify that supplements to unbound publications do not require the 
endorsement ``Supplement to'' unless the supplement is included loose 
outside the publication. This final rule does so.
    Three commenters expressed a concern that the proposed definition 
of supplements would exclude from second-class eligibility special 
supplemental advertising materials that are bound into a second-class 
publication. The Postal Service considers such an advertisement to be 
an integral part of the publication. It is not a ``supplement'' within 
the meaning of this section. Six other commenters requested that the 
Postal Service better define the term ``supplement'' to avoid any 
misunderstanding over its use. Although, as indicated, some publishers 
use the term ``supplement'' to refer to items that are either bound 
into a bound publication or included loose with a bound publication, 
the Postal Service considers the definition in the proposal to be less 
confusing than prior definitions and a more accurate description of 
what is acceptable as a supplement. The proposed definition is adopted 
in the final rule.
    One commenter disagreed with the requirement that the external 
dimensions of a supplement (its length and height) may not exceed the 
dimensions of the host publication. The commenter suggested that this 
restriction be dropped if the publication and its supplement or 
supplements are polybagged. The Postal Service considers the height and 
length restriction on supplements to be a necessary requirement to aid 
in recognizing the second-class piece as the host piece to ensure 
proper handling as a time-value publication. Additionally, this 
restriction promotes the production of a mailpiece (i.e., host and 
supplement) that is easier to process. The proposal is adopted.
10. Covers (C200.1.6)
    No comments were received concerning the proposed language in this 
section. The proposal is adopted.
11. Mailing Wrappers (C200.1.7)
    One commenter suggested that the definition of a wrapper include 
the words ``partial wrapper,'' consistent with the use of this term 
elsewhere in these standards (see C200.3.4). The Postal Service agrees. 
This wording is added and the proposal is adopted.
12. Attachments (C200.1.8)
    The rule as proposed in C200.1.8a allows for stickers of any size 
and shape to be attached to the cover, protective cover, or mailing 
wrapper if no portion of the publication name is obscured. One 
commenter requested that this reference to stickers as attachments be 
clarified to state that stickers attached to a page using any 
manufacturing process are allowable. The Postal Service believes that 
the suggested reference to ``any manufacturing process'' is too broad 
and all inclusive and that the proposed language is sufficiently clear 
and accommodating. No other comments were received. This section is 
adopted as proposed.
13. Printed Additions (C200.1.9)
    This section consolidates the list of words, characters, figures, 
and phrases that may be added to a copy of a second-class publication 
after it is printed or placed on the protective cover or mailing 
wrapper. No comments were received. The proposal is adopted.
14. Label Carriers (C200.1.10)
    One commenter suggested that a label carrier should be permitted 
with publications enclosed within polywrap or a partial wrapper (such 
as a sleeve). The Postal Service believes that there is merit in this 
suggestion and has amended this section accordingly in the final rule.

Impermissible Components (C200.2.0)

15. General Standard (C200.2.1)
    This section describes materials not eligible for second-class 
rates. No comments were received. The proposal is adopted.
16. Prohibited Matter (C200.2.2)
    This section describes those materials that are prohibited from 
being mailed at [[Page 10024]] second-class rates whether as a loose 
supplement, as a bound-in ``preprint,'' or as a run-of-press (ROP) 
page. One commenter stated that the prohibitions should be applicable 
to loose supplements only and not to preprints or ROP pages. The Postal 
Service considers that, by definition, certain materials are not 
eligible to be mailed at second-class rates. Further, the Postal 
Service does not find the manner in which matter would be incorporated 
in a host publication (e.g., as a loose supplement or bound-in 
advertisement) to be a relevant factor in determining second-class 
eligibility. The Postal Service believes that the listed elements for 
prohibited matter should apply to all material offered for entry at the 
second-class rates.
    It was further suggested by a commenter that a USPS number be added 
to the list of prohibited matter. Although separate second-class 
publications may be combined under certain specified conditions, the 
Postal Service believed that it was understood that a second-class 
publication could not be mailed as a supplement. Seeing some merit in 
this suggestion, the Postal Service has added a USPS number to the list 
of prohibited matter (see C200.2.2e) to clarify this point.
    Two commenters strongly favored the Postal Service's new list of 
objective criteria for defining those independent publications that are 
ineligible to be mailed at second-class rates. One commenter stated 
that the list of prohibited items does not go far enough to ensure that 
prohibited independent publications not be allowed to mail at second-
class rates, and suggested that the standards be revised to retain a 
specific prohibition against ``independent publications'' and to treat 
the list of components as creating a strong presumption that the item 
is (or is not) an independent publication. The commenter also suggested 
that the list be expanded to include a separate table of contents, 
pagination, and masthead as indicators of a publication's possible 
independence. Eliminating the confusion surrounding what constitutes an 
independent publication is a major objective of this rulemaking. The 
Postal Service believes that the proposed rule as written serves to 
eliminate such confusion and that it is not necessary to adopt 
requirements more stringent than those in the proposed rule, especially 
because the 25% nonadvertising requirement for loose supplements to a 
bound publication has been retained. Therefore, except for the 
aforementioned amendment, the proposal is adopted.
17. Products (C200.2.3)
    The following proposed language concerning products drew numerous 
comments: ``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 
date, and relate to other advertising or nonadvertising content of the 
host publication.'' Five commenters objected to this language as being 
both too vague and too stringent (except for the prohibition against 
such pages as calendars being offered for sale). Seven commenters were 
in favor of the Postal Service's position that noncommercially 
available oversized pages and calendars be permitted to be mailed at 
second-class rates. The Postal Service intended this proposed revision 
to allow pages (specifically pages prepared as posters) and calendars 
that are not commercially sold or offered for sale by the publisher to 
be included in publications mailed at the second-class rates. The 
requirement for including the host publication name, issue date, and 
the relation of the page or calendar to other advertising or 
nonadvertising content of the host publication was intended to 
demonstrate the piece's relationship to the host piece, thereby 
reinforcing its acceptability. To minimize the likelihood of 
misinterpretation, however, the Postal Service has reworded portions of 
this section for greater clarity.
    One commenter suggested that publishers should be allowed to sell 
their own reprints and other reader service items to their subscribers 
without paying a ``postage penalty.'' The Postal Service does not 
believe that it is appropriate to allow publishers to obtain 
preferential second-class rates for material that is also designed for 
separate sale. This view is consistent with the exclusion from 
eligibility for second-class rates of items bearing a separate price 
(see C200.2.2a). Three commenters suggested that the word ``Poster'' be 
included. The Postal Service does not wish to limit oversized pages to 
posters because other items (e.g., maps, wall charts, and patterns) 
will also be acceptable at second-class rates if not commercially 
available or offered for sale.
18. Fourth-Class Mail (C200.2.4)
    One commenter suggested that this section be revised to allow 
second-class matter to be mailed with fourth-class matter at fourth-
class rates. However, the proposed section pertains to what may be 
mailed at second-class rates. The comment goes beyond the scope of this 
rulemaking. No other comments concerning this portion of the proposal 
were received. The proposal is adopted as written.
19. Nonprinted Sheets (C200.2.5)
    This section makes clear that any matter not formed of printed 
sheets (except for small amounts of fastening material such as 
grommets, string, or rubber bands needed to assemble the page [see 
C200.1.1b]) is not eligible for second-class rates. No comments were 
received. The proposal is adopted.

Mailpiece Construction (C200.3.0)

20. Bound/Unbound (C200.3.1)
    This section defines bound and unbound publications for the 
purposes of second-class mail. No comments were received. The proposal 
is adopted.
21. Physical Size (C200.3.2)
    This section explains that publications claimed at certain rates 
may need to comply with other DMM standards regarding size or weight. 
Additionally, it provides that requester publications must contain at 
least 24 pages per issue. No comments were received. The proposal is 
adopted.
22. Without Wrapper (C200.3.3)
    One commenter suggested that the tolerance for protective covers 
(i.e., \3/4\ inch of the edge opposite the fold or binding) in C200.3.5 
be allowed for attachments to covers as well. The Postal Service agrees 
that the standards governing protective covers and attachments to 
covers should be consistent and has added language to permit acceptable 
attachments to covers (as outlined in C200.1.8b) that come within \3/4\ 
inch opposite the fold or binding to be mailed without a wrapper. The 
proposal is adopted with this clarification.
23. With Wrapper (C200.3.4)
    No comments were received concerning the proposed language in this 
section. The proposal is adopted.
24. Protective Cover (C200.3.5)
    Two commenters supported the proposed language in C200.3.5, which 
would allow a protective cover to be up to \3/4\ inch shorter than the 
cover of the edge opposite the fold or binding. No negative comments 
were received. The proposal is adopted.
25. APO/FPO Copies (C200.3.6)
    This section requires that 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 
[[Page 10025]] to be completely enclosed in a wrapper. No comments were 
received. The proposal is adopted.
26. Sealing (C200.3.7)
    This section explains that second-class mail must be prepared so 
that it can be easily examined. No comments were received. The proposal 
is adopted.

Printed Features (C200.4.0)

27. Publication Name; Notices (C200.4.1)
    This section details how and where the publication name and any 
notices must be displayed on the publication and any protective cover 
or mailing wrapper. No comments were received. The proposal is adopted.
28. Endorsements (C200.4.2)
    This section pertains to endorsement placement on second-class 
mailing wrappers. No comments were received. The proposal is adopted.
29. Advertising (C200.4.3)
    This section explains that, regardless of location, an 
advertisement must be prepared as an integral part of the publication. 
This section also details acceptable preparation standards for 
advertisements. No comments were received. The proposal is adopted.
30. Marking of Paid Reading Matter (18 U.S.C. 1734) (C200.4.4)
    This section on the marking of paid reading matter is carried word 
for word from the current DMM. No comments were received. The proposal 
is adopted.

Standards Applicable to All Second-Class Mail (E211)

31. Printed Sheets (E211.3.0)
    Two commenters opposed the revision to this section, with one 
commenter suggesting that the additional language would ``limit the 
types of publications included within `printed sheet' and would exclude 
publications printed on computer-readable plastic or metal sheets from 
second-class eligibility.'' The language in E211.3.0 was not revised, 
but taken word for word from current module C, Characteristics and 
Content, of the DMM. The Postal Service did not propose to make any 
change in its policy or interpretation concerning what constitutes a 
printed sheet. Rather, the proposal was solely intended to move this 
provision to a more appropriate position in module E, Eligibility. Four 
commenters suggested that the section be revised to include ``plastic'' 
to describe permissible sheets mailed at second-class rates, and one 
commenter suggested that the section be revised to include ``a small 
swatch of cloth, fabric, wallpaper, or plastic.'' The current language 
does not exclude materials such as plastic, and the Postal Service 
believes that retention of the words ``or other similar materials'' is 
preferable to an attempt to set forth a complete list of eligible 
materials. The language is adopted as proposed.
32. Contents (E211.7.3)
    Five commenters suggested that this section be revised to include 
``buyers' guides'' as permissible contents to issues of a second-class 
publication. The Postal Service believes that this is a reasonable 
suggestion and has revised the wording accordingly. The proposal is 
adopted with this change.
33. Back Numbers and Reprints (E211.9.0)
    This section rewords for clarity current DMM requirements governing 
back numbers and reprints. No comments were received. The proposal is 
adopted.
34. Public Service (E211.11.2)
    One comment was received concerning the Postal Service's proposed 
definition of what constitutes a public service announcement, 
expressing the concern that material on behalf of advertisers might be 
published as part of a public service announcement. The Postal 
Service's definition of advertising states, in part, ``articles, items, 
and notices in the form of reading matter inserted by custom or 
understanding that textual matter is to be inserted for the advertiser 
or the advertiser's products in the publication in which a display 
advertisement appears is `advertising.''' The Postal Service believes 
that this provision is adequate to protect against the commenter's 
concerns. Therefore, the definition as proposed is adopted.

Mixed Classes (P070)

35. Enclosures in Second-Class Publications (P070.2.0)
    This section contains the general rule for postage payment on 
enclosures in second-class mail. Current P070.2.4, which contains 
instructions on how to mark mail including First- or third-class 
enclosures, is moved from module P, Postage and Payment Methods, to the 
revised module C (see C200.2.8b). No comments were received. The 
proposal is adopted.
36. Computing Permit Imprint Postage (P070.2.8)
    This section clarifies the procedures to follow when computing 
permit imprint postage. No comments were received. The proposal is 
adopted.

Basic Information (P200.1.0)

37. Measuring Advertising (P200.1.7)
    One commenter asserted that this section is ``self-contradictory'' 
because some advertising space (e.g., columns as well as borders) is 
required to be counted twice under these instructions. The proposed 
standard does not require that advertising be counted twice. Consistent 
with past practice, this provision provides that the publisher must use 
the same method to compute the advertising/nonadvertising percentage 
(e.g., column inches, square inches, or pages) consistently throughout 
the measurement process. Instructions concerning the measurement of 
portions of a page or blank borders are only meant to ensure that if an 
advertising rate is paid for the material, it must be included in the 
advertising percentage. For example, if an advertiser who pays for a 
full page of advertising to be measured in column inches chooses to 
produce a small advertisement surrounded by blank space on a full page 
that contains 27 column inches, the entire 27 column inches must be 
claimed at the advertising rate even though a majority of the page is 
blank space. The Postal Service believes, therefore, that the standard 
as proposed should be adopted.
    Two commenters found the final sentence confusing in the section 
that reads ``[w]hen 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.'' The Postal 
Service agrees with this assessment and has changed the language to 
read ``[w]hen two or more sheets are permanently glued together to form 
a single sheet, the surface area of the resulting sheet (front and 
back) is included when measuring the advertising or nonadvertising 
portion.'' The proposal is adopted with this minor clarification.

List of Subjects in 39 CFR Part 111

    Postal Service.

    In view of the considerations discussed above, the Postal Service 
hereby adopts the following amendments to the Domestic Mail Manual, 
which is incorporated by reference in the Code of Federal Regulations 
(see 39 CFR part 111.1).

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    [[Page 10026]] 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 
endorsed ``Return Postage Guaranteed.''
    3. Replace current Domestic Mail Manual C200, Second-Class Mail, 
with the following:


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 pages having textual and graphic matter (see E211), 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 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 pages formed by sheets glued 
together and pages 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 publication name, 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 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 piece 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 any 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 must be closely related but 
secondary to the second-class publication with which it is enclosed and 
must consist 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 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 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. [[Page 10027]] 
    d. 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 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. Supplements are also subject to these conditions as 
applicable:
    a. A loose supplement to a bound second-class publication must 
contain at least 25% nonadvertising matter and bear the endorsement 
``Supplement to'' followed by the name of the publication or the 
publisher. A bound publication with one or more supplements must be 
enclosed in a wrapper under 3.4. If a supplement to a bound publication 
is formed of more than one sheet, all sheets making up the supplement 
must be bound together.
    b. A supplement to an unbound publication must be combined with and 
inserted within the publication under 3.3. If the supplement is 
included loose outside the unbound publication, the publication and its 
supplement must be enclosed in a wrapper or envelope under 3.4 and the 
supplement must bear the 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, partial wrapper, 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:
    a. Stickers of any size and shape. If stickers are attached to the 
cover, protective cover, or mailing wrapper, no portion of the 
publication name may be obscured.
    b. Material allowed as a loose enclosure described in 1.3 or 1.4. 
When nonincidental First- and/or any 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 expiration date of the subscription.
    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 Mail 
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 (as defined in 
1.7) 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. The label carrier 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 that permit 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.


2.2  Prohibited Matter

    Material that 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 
those of 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) or USPS number 
different from that of the host publication. [[Page 10028]] 


2.3  Products

    Products may not be mailed at second-class rates. Examples include 
stationery (such as 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 
offered for sale.


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 in which 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 in which pages are loose and 
collated (``nested'') or in which 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 and comes within 3/4 inch of the edge 
opposite the fold or binding.


3.4  With Wrapper

    Except as provided in 1.5, 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 must 
be either completely enclosed in an envelope, plastic wrapper 
(polybag), or paper wrapper or 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. The mailing of 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 (or ISSN if 
one has been assigned), 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 (or request) for a subscription, all advertisements in a bound 
publication must be permanently attached. Except as provided in 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:]

    [[Page 10029]] * * * 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, buyers'' guides, 
lists, and similar material prepared as part of the contents if copies 
of these issues bear the publication name and are included in the 
regular subscription price.
* * * * *


9.0  BACK NUMBERS AND REPRINTS

[Combine 9.1 and 9.2; revise as follows:]

    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 are also mailable at second-class rates. 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 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, the enclosures are 
treated as a single enclosure for computing postage. * * *
* * * * *
    6. In Domestic Mail Manual P200, Second-Class Mail, renumber 
current 1.7 through 1.11 as 1.8 through 1.12, respectively; delete 
current 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 portions. 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 are permanently glued together to form a single sheet, the 
surface area of the resulting sheet (front and back) is included when 
measuring the advertising or nonadvertising portion.
* * * * *
    A transmittal letter making these changes in the pages of the 
Domestic Mail Manual will be published in the Federal Register as 
provided by 39 CFR 111.3.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 95-4333 Filed 2-22-95; 8:45 am]
BILLING CODE 7710-12-P