[Federal Register Volume 60, Number 63 (Monday, April 3, 1995)]
[Notices]
[Pages 16887-16894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8107]



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[[Page 16888]]

POSTAL RATE COMMISSION

[Docket No. MC95-1 and Order No. 1049]


Mail Classification Schedule, 1995 Classification Reform I; 
Notice and Order on Filing of Major Revisions to the Domestic Mail 
Classification Schedule (With Related Postal Rate Changes)

    (Issued March 28, 1995)

    Notice is hereby given that on March 24, 1995, the United States 
Postal Service filed a request with the Postal Rate Commission pursuant 
to section 3623 of the Postal Reorganization Act [39 U.S.C. 3623] for a 
recommended decision on proposed changes in the domestic mail 
classification schedule (DMCS). The proposed revisions also entail 
changes in rates. The Request includes several attachments and is 
supported by the testimony of 22 witnesses. It is on file in the 
Commission's docket room and is available for public inspection during 
regular business hours.
    Nature and extent of proposed changes. The Service indicates that 
this proposal is the initial phase of a fundamental structural reform 
of the longstanding approach to mail classification. It asserts that an 
extensive review has shown that this type of reform is needed if it is 
to continue to meet its statutory obligations. Request at 1-2. In 
particular, the Service maintains that the requested amendments to the 
DMCS and its attendant rate schedules will further the general policies 
of efficient postal operations and reasonable rates enunciated in the 
Postal Reorganization Act, and conform to the criteria of 39 U.S.C. 
Secs. 3622(b) and 3623(c). Id. at 9.
    Mail users most directly affected by the revisions included in this 
phase of the proposed reform are current users of First-Class Mail, 
regular-rate second- and third-class mail. Also, the DMCS provisions 
relating to Express Mail and fourth class have been revised. 
Classification reforms affecting senders of nonprofit mail, parcels and 
Priority Mail are expected to be filed with the Commission at a later, 
unspecified time. Id. at 3-4. The proposed revisions entail numerous 
rate changes; however, the first ounce of First-Class Mail remains 
unchanged at 32 cents.
    Service levels proposed as the basic criterion for mail 
classification. The Service proposes using the customer's choice of 
service level as the basic criterion for defining the classes of mail. 
These service levels, plus an independent grouping for periodicals, 
would supplant the existing classes of mail, as follows: Expedited Mail 
for Express Mail; Standard Mail for third- and fourth-class mail; and a 
Periodicals class for second class. First-Class Mail would continue to 
be known by that name, but would have two distinct subclasses, as noted 
below.
    Mail preparation proposed as the criteria for subclasses. The 
Service proposes defining subclasses within the proposed new classes of 
mail on the basis of the type of mail preparation performed by the 
customer. Two types of preparation would be recognized under the new 
structure: that which facilitates the use of advanced technology to 
accept, process and deliver the mail, and that which allows what the 
Service refers to as ``the bulk bypass'' of postal operations. Under 
these criteria, Automation and Retail subclasses of First-Class Mail 
replace the current regular First-Class Mail and First-Class postal and 
post cards subclasses. Similarly, Regular, Automation, and Enhanced 
Carrier Route subclasses of Standard Mail replace the regular-rate bulk 
third-class mail subclass. Regular and Publications Service subclasses 
within the new Periodicals class replace the regular-rate second-class 
mail subclass. Expedited Mail, like the corresponding Express Mail it 
replaces, is not divided into subclasses.
    Principles underlying classification reform proposals. The Service 
says it has developed seven guiding principles for use in designing 
specific classification reform proposals. These are: the creation of 
homogeneous cost- and market-based subclasses; the application of 
pricing in a more effective manner; the encouragement of low-cost 
mailstreams; the modernization and standardization of mail entry 
requirements; the reduction of the impact of mail content in 
classification; the elimination of unnecessary classifications; and the 
addition of classifications only where significant market or 
operational needs exist. Id. at 3.
    Effect on postal costs, volumes and revenues; ``contribution 
neutrality.'' The Service maintains that the proposed rates are 
designed to recover approximately the same FY 1995 institutional cost 
contribution from the reformed subclasses as was projected in the 
Commission's Docket No. R94-1 Opinion and Recommended Decision for 
their predecessor subclasses for FY 1995. It says that this 
``contribution neutral'' approach was selected because this Request was 
not intended to be a revenue case, nor an opportunity to challenge, 
change or improve on the Commission's conclusions drawn from the record 
in Docket No. R94-1. The Service asserts that the rate changes included 
in this Request are solely for the purpose of applying the pricing 
factors of the Postal Reorganization Act to the reformed subclasses; it 
is not seeking to increase or decrease institutional cost contributions 
beyond the levels recommended by the Commission and approved by the 
Governors in Docket No. R94-1.
    The Service notes that with two exceptions, it has made no 
methodological changes or departures from the Docket No. R94-1 
Recommended Decision in this Request. The exceptions relate to 
estimates of the costs, volumes and revenues for the new subclasses and 
the city carrier single subclass stop issue. Id. at 6. With respect to 
the latter, the Service says that it has included only volume variable 
city carrier street time costs in the attributable cost base; it has 
included the remaining costs attributed in the Commission's Docket No. 
R94-1 Recommended Decision for each relevant existing subclass in the 
net revenue target for the pertinent group of reform subclasses. Id. 
The Service also notes that adjustments to the Docket No. R94-1 
forecasts for First- and third-class prebarcoded flats have been 
adjusted, and the base for the prebarcode portion of First-Class 
letters and cards has been recast to incorporate additional information 
from mailing statements. Id.
    Organizational and editorial changes in the DMCS. The Service also 
proposes conforming organizational changes in the DMCS. Pursuant to 
these changes, single-piece third-class mail and nonprofit third-class 
mail would be included in Standard Mail, as would Fourth-class Parcel 
Post, Bulk Parcel Post, Bound Printed Matter, Special and Library rate 
subclasses. The current second-class preferred rate classifications for 
Within County, Nonprofit, Classroom and Science of Agriculture 
publications would be included in the new Periodicals class. Priority 
Mail would remain a subclass in First-Class Mail. The Service maintains 
that no rate changes or substantive classification changes are 
requested for these existing classifications. The Postal Service also 
proposes a number of editorial changes to the Special Service Rate and 
Classification schedules to reflect changes in the names and 
organization of the restructured classes and subclasses. The Service 
also proposes consolidating and updating the General Definitions and 
General Terms and Conditions of the DMCS. See generally Request at 7-8. 
[[Page 16889]] 
    In conjunction with the proposed classification reform and DMCS 
reorganization, the Service requests the Commission to recommend 
editorial changes included in the DMCS provisions and in the Rate 
Schedules set forth, respectively, as Attachments A and B of its 
Request. The rate schedules are also reproduced as an attachment to 
this order. The Service says these changes, designed to streamline and 
standardize the DMCS, include: renumbering to eliminate the current 
four-decimal place section numbering structure; standardization of the 
organizational structure so that related provisions are in the same 
numbered sections in each classification schedule; inclusion in the 
text of the reformed subclasses provisions not set forth in footnotes 
to the rate schedules; consolidation of small sections; elimination of 
redundant and obsolete material; and use of headings for all sections. 
Id. at 8-9.
    Public hearings; intervention. The Commission intends to hold 
public hearings on the Service's proposed changes. Involvement in these 
hearings generally takes the form of either full intervention or 
limited participation. See Commission rules 20 and 20a [39 CFR 
Sec. 3001.20 and 20a]. Commenter status is available for persons 
wishing to express their views informally, without incurring the 
obligations that attach to the two other forms of participation. See 
Commission rule 20b [39 CFR Sec. 3001.20b]. Those wishing to be heard 
in this matter as either a full intervenor or limited participant are 
directed to file a written notice of intervention identifying the 
status they intend to assume and affirmatively stating how actively 
they expect to participate. Limited participants are advised to review 
recent revisions to Commission rules of practice clarifying their 
obligation to respond to discovery requests under certain 
circumstances.
    Notices should be sent to the attention of Margaret P. Crenshaw, 
Secretary of the Commission, 1333 H Street NW., Washington, DC 20268-
0001, on or before April 24, 1995. Commenter status does not require a 
notice of intervention.
    Representation of the general public. In conformance with section 
3624(a) of title 39, the Commission designates W. Gail Willette, 
Director of the Commission's Office of the Consumer Advocate (OCA), to 
represent the interests of the general public in this proceeding. 
Pursuant to this designation, Ms. Willette will direct the activities 
of Commission personnel assigned to assist her and, when requested, 
will supply their names for the record. Neither Ms. Willette nor any of 
the assigned personnel will participate in or provide advice on any 
Commission decision in this proceeding. The OCA shall be separately 
served with three copies of all filings, in addition to and 
contemporaneous with, service on the Commission of the 24 copies 
required by section 10(c) of the rules of practice [39 CFR 
Sec. 30001.10(c)].
    Special rules of practice. This proceeding will be conducted 
pursuant to special evidentiary rules of practice set forth as 
Attachment A. With the exceptions noted below, these special rules are 
essentially the same as those utilized in Docket No. R94-1. The 
Presiding Officer may alter these rules for good cause at any 
subsequent point during this proceeding. Participants are encouraged to 
carefully review the terms of all the rules, with special attention to 
the three noted below. Special Rule No. 2C retains the 14-day deadline 
for filing answers to discovery requests. The Commission notes that 
this deadline is applicable not only to intervenors and the OCA, but to 
the Service as well. Special Rule No. 3, relating to service of 
documents, has been changed to reflect the Commission's recent 
amendment of rule 12(b). The amendment imposes an affirmative duty upon 
participants to request service of certain documents. See 60 FR 12113 
(March 6, 1995).
    The text of Special Rule No. 1D relating to designations also has 
been revised by eliminating a reference that proved confusing in Docket 
No. R94-1. This revision is not intended to make any substantive change 
in the rule. In addition to this change, the Commission notes a larger 
concern based on experience with the rule in Docket No. R94-1. During 
the course of that proceeding, confusion over the scope and 
applicability of the designation rule gave rise to extensive counter-
designations, motion practice and rulings. This seriously undermined 
one of the main purposes underlying use of the rule, which is to foster 
expedition. Absent a better understanding among participants about the 
purpose of designations and the proffer that must be made to support a 
motion for their acceptance, the Commission has serious reservations 
about the rule's continued efficacy. Given this concern, the Commission 
asks that participants be prepared to address the designation process 
at the prehearing conference.
    Initial prehearing conference: date, location and agenda. The 
Commission will convene a prehearing conference at 9:30 a.m. on 
Tuesday, April 25, 1995. The conference will be held in the 
Commission's hearing room at 1333 H Street NW., Suite 300, in 
Washington, DC. The Commission expects persons attending the meeting to 
be prepared to discuss procedural and scheduling matters pertinent to 
the Service's filing, and other issues such as the potential for 
settlement of any issues or other opportunities for expedition.
    In the interest of conducting a comprehensive conference, 
participants are directed to file a notice of issues they would like to 
raise for consideration no later than 7 days before the prehearing 
conference. Suggestions need not be limited to procedural matters, but 
may include substantive issues to the extent that considering them at 
this stage may contribute to expedition of the entire proceeding. A 
final agenda incorporating participants' suggestions will be 
distributed at the outset of the prehearing conference. The Presiding 
Officer may schedule additional prehearing conferences if circumstances 
warrant.
    Other matters. The Commission intends to complete hearings on the 
Postal Service's filing and issue its recommended decision and opinion 
promptly. Although a firm procedural schedule has not been developed at 
this time, the Commission anticipates conducting hearings during the 
months of June and September. Parties are advised to plan their 
business and personal schedules accordingly. The Commission also 
encourages participants to use informal conferences to resolve as many 
technical questions about testimony, workpapers and exhibits as 
possible. In addition, the Commission strongly encourages participants 
to resolve disputes or concerns between or among themselves, reserving 
motions invoking the Presiding Officer's involvement (or that of the 
Commission) for only the most significant issues or intractable 
disagreements. In furtherance of this policy, the Presiding Officer may 
require participants to document their attempts at early and informal 
resolution as a condition of accepting motions for relief.
    Docket room hours of operation. Documents may be filed with the 
Commission's docket section Monday through Friday between 8 a.m. to 5 
p.m. Questions about docket room operations should be directed to Ms. 
Peggie Brown at 202-789-6845.
    It is ordered:
    1. The Commission will sit en banc in this proceeding.
    2. Notices of intervention shall be filed no later than April 24, 
1995. [[Page 16890]] 
    3. A prehearing conference will be held on Tuesday, April 25, 1995 
at 9:30 a.m. in the Commission's hearing room.
    4. Participants are directed to file notices of issues to be 
addressed at the prehearing conference not later than 7 days prior to 
the conference.
    5. This proceeding will be conducted pursuant to the special rules 
of practice set out as Attachment A.
    6. W. Gail Willette, Director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interests of the 
general public in this proceeding.
    7. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.

    By the Commission.
Margaret P. Crenshaw,
Secretary.

Attachment A--Special Rules of Practice

1. Evidence

A. Case-in-chief

    A participant's case-in-chief shall be in writing and shall include 
the participant's direct case and rebuttal, if any, to the United 
States Postal Service's case-in-chief. It may be accompanied by a trial 
brief or legal memoranda. There will be a stage providing an 
opportunity to rebut presentations of other participants and for the 
Postal Service to present surrebuttal evidence.

B. Exhibits

    Exhibits should be self-explanatory. They should contain 
appropriate footnotes or narrative explaining the source of each item 
of information used and the methods employed in statistical 
compilations. The principal title of each exhibit should state what it 
contains or represents. The title may also contain a statement of the 
purpose for which the exhibit is offered; however, this statement will 
not be considered part of the evidentiary record. Where one part of a 
multi-page exhibit is based on another part or on another exhibit, 
appropriate cross-references should be made. Relevant exposition should 
be included in the exhibits or provided in accompanying testimony.

C. Motions to Strike

    Motions to strike are requests for extraordinary relief and are not 
substitutes for briefs or rebuttal evidence. All motions to strike 
testimony or exhibit materials are to be submitted in writing at least 
14 days before the scheduled appearance of the witness. Responses to 
motions to strike are due within seven days.

D. Designation of Evidence from other Commission Dockets

    Participants may request that official notice be taken of evidence 
received in other Commission proceedings. These requests should be made 
by motion, should explain the purpose of the designation, and should 
identify material by page and line or paragraph number. Absent 
extraordinary justification, these requests must be made at least 28 
days before the date for filing the participant's direct case. If 
requests for designations and counter-designations are granted, the 
moving participant must submit two copies of the approved material to 
the Secretary of the Commission for inclusion in the record.
    Oppositions to motions for designation and/or requests for counter-
designations shall be filed within 14 days.

2. Discovery

A. General

    Rules 25, 26 and 27 apply during the discovery stage of this 
proceeding except when specifically overtaken by these special rules. 
Questions from each participant should be numbered sequentially, by 
witness.
    The discovery procedures set forth in the rules are not exclusive. 
Parties are encouraged to engage in informal discovery whenever 
possible to clarify exhibits and testimony. The results of these 
efforts may be introduced into the record by stipulation, by 
supplementary testimony or exhibit, by presenting selected written 
interrogatories and answers for adoption by a witness at the hearing, 
or by other appropriate means.
    In the interest of reducing motion practice, parties also are 
encouraged to use informal means to clarify questions and to identify 
portions of discovery requests considered overbroad or burdensome.

B. Objections and Motions to Compel Responses to Discovery

    Upon motion of any participant in the proceeding, the Commission or 
the presiding officer may compel production of documents or items or 
compel an answer to an interrogatory or request for admissions if the 
objection is overruled. Motions to compel should be filed within 14 
days of an objection to the discovery request.
    Parties who have objected to interrogatories or requests for 
production of documents or items which are the subject of a motion to 
compel shall have seven days to answer. Answers will be considered 
supplements to the arguments presented in the initial objection.

C. Answers to Interrogatories

    Answers to discovery requests shall be prepared so that they can be 
incorporated as written cross-examination. Each answer shall begin on a 
separate page, identify the individual responding, and set forth the 
participant who asked the question and the number and text of the 
question.
    Participants are expected to serve supplemental answers to update 
or to correct responses whenever necessary, up until the date that 
answers are accepted into evidence as written cross-examination. 
Participants filing supplemental answers shall indicate whether the 
answer merely supplements the previous answer to make it current or 
whether it is a complete replacement for the previous answer.
    Participants may submit discovery responses with a declaration of 
accuracy from the respondent in lieu of a sworn affidavit.
    Answers to discovery are to be filed within 14 days of the service 
of the discovery request. Participants are urged, but not required, to 
deliver discovery requests by hand to those who are subject to the 14-
day deadline.

D. Follow-up Interrogatories

    Follow-up interrogatories to clarify or elaborate on the answer to 
an earlier discovery request may be filed after the initial discovery 
period ends. They must be served within seven days of receipt of the 
answer to the previous interrogatory unless extraordinary circumstances 
are shown.

E. Discovery to Obtain Information Available Only from the Postal 
Service

    Rules 25 through 27 allow discovery reasonably calculated to lead 
to admissible evidence during a noticed proceeding with no time 
limitations. Generally, through actions by the presiding officer, 
discovery against a party is scheduled to end prior to the receipt into 
evidence of that party's direct case. An exception to this procedure 
shall operate when a participant needs to obtain information (such as 
operating procedures or data) available only from the Postal Service. 
Discovery requests of this nature are permissible up to 20 days prior 
to the filing date for final rebuttal testimony.

3. Service

    Interrogatories, objections and answers thereto should be served, 
in conformance with Rule 12, on the Commission, the OCA (three copies), 
on the complementary party, and on any [[Page 16891]] other participant 
so requesting. Participants will be deemed to have requested service 
for purposes of these special rules unless they file a document to the 
contrary with the Commission.
    Parties should include informative titles to identify the content 
of any filing. When possible, the relief requested or the issue 
addressed should be noted. Transmittal documents should identify the 
answers or other materials being provided.

4. Cross-examination

A. Written cross-examination

    Written cross-examination will be utilized as a substitute for oral 
cross-examination whenever possible, particularly to introduce factual 
or statistical evidence.
    Designations of written cross-examination should be served three or 
more working days before the scheduled appearance of a witness. 
Designations shall identify every item to be offered as evidence, 
listing the participant who initially posed the discovery request, the 
witness and/or party to whom the question was addressed (if different 
from the witness answering), the number of the request and, if more 
than one answer is provided, the dates of all answers to be included in 
the record. (For example, ``OCA-T1-17 to USPS witness Jones, answered 
by USPS witness Smith (July 1) as updated (July 21).'' When a 
participant designates written cross-examination, two copies of the 
actual documents to be included shall simultaneously be submitted to 
the Secretary of the Commission.
    The Secretary of the Commission shall prepare for the record a 
packet containing all materials designated for written cross-
examination, alphabetically by participant initially posing the 
question. The witness will verify the answers and materials in the 
packet, and they will be entered into the transcript by the presiding 
officer. Counsel for a witness may object to written cross-examination 
at that time, and any designated answers or materials ruled 
objectionable will be stricken from the record.

B. Oral cross-examination

    Oral cross-examination will be permitted for clarifying written 
cross-examination and for testing assumptions, conclusions or other 
opinion evidence. Requests for permission to conduct oral cross-
examination should be served three or more working days before the 
announced appearance of a witness and should include (1) specific 
references to the subject matter to be examined and (2) page references 
to the relevant direct testimony and exhibits.
    Participants intending to use complex numerical hypotheticals or to 
question using intricate or extensive cross-references, shall provide 
adequately documented cross-examination exhibits for the record. Copies 
of these exhibits should be provided to counsel for the witness at 
least two calendar days (including one working day) before the 
witness's scheduled appearance.

5. General

    Argument will not be received in evidence. It is the province of 
the lawyer, not the witness. It should be presented in brief or 
memoranda. Legal memoranda on matters at issue will be welcome at any 
stage of the proceeding.
    New affirmative matter (not in reply to another party's direct 
case) should not be included in rebuttal testimony or exhibits.
    Cross-examination will be limited to testimony adverse to the 
participant conducting the cross-examination.
    Library references may be submitted when documentation or materials 
are too voluminous reasonably to be distributed. Each party should 
sequentially number items submitted as library references and provide 
each item with an informative title. Parties are to file and serve a 
separate Notice of Filing of Library Reference(s). Library material is 
not evidence unless and until it is designated and sponsored by a 
witness.

Attachment B

    1. Amend Rate Schedules 500, 501, 502, 503 as follows:

             Express Mail Rate Schedules 121, 122, AND 123*             
                                [Dollars]                               
------------------------------------------------------------------------
   Schedule 121       Schedule 122               Schedule 123           
------------------------------------------------------------------------
                                        Next day and      Next day and  
 Same day airport   Custom designed   second day PO to  second day PO to
     service                                 PO             addressee   
------------------------------------------------------------------------
[THE POSTAL SERVICE DOES NOT REQUEST ANY CHANGE IN THESE SCHEDULES OTHER
 THAN THE ORGANIZATIONAL CHANGES NOTED ABOVE]                           
------------------------------------------------------------------------

    2. Replace Rate Schedule 100 with proposed Rate Schedules 221 and 
222.

           First-Class Mail Rate Schedule 221 Retail Subclass           
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
First Ounce:                                                            
  Single Piece...............................................       32.0
  Presort....................................................       30.0
Additional Ounce.............................................       23.0
Presort Discount for Pieces over 2 Ounces....................        4.6
Nonstandard Size Surcharge:                                             
  Single Piece...............................................       11.0
  Presort....................................................        5.0
Postal and Post Card Discount................................       11.0
------------------------------------------------------------------------


         First-Class Mail Rate Schedule 222 Automation Subclass         
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
First Ounce:                                                            
  Basic......................................................       27.0
  Three-Digit................................................       25.0
  Five-Digit.................................................       23.5
  Carrier Route..............................................       23.2
  Basic Flats................................................       29.0
  \3/5\-Digit Flats..........................................       27.0
Additional Ounce.............................................       23.0
Presort Discount for Pieces over 2 Ounces....................        4.6
Nonstandard Size Surcharge...................................        5.0
Post Card Discount...........................................        9.5
------------------------------------------------------------------------

    3. Amend Rate Schedule 103 as follows:

       First-Class Mail Rate Schedule 223 Priority Mail Subclass*       
                                                                        
                                                                        
[THE POSTAL SERVICE DOES NOT REQUEST ANY CHANGE IN THIS SCHEDULE OTHER  
 THAN THE ORGANIZATIONAL CHANGES NOTED ABOVE]                           

    4. Amend Rate Schedule 300 as follows:

         Standard Mail Rate Schedule 321.1 Single Piece Subclass        
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Basic Rate:                                                             
    One ounce or less........................................           
    Not more than two ounces.................................           
    Not more than three ounces...............................           
    Not more than four ounces................................           
    Not more than five ounces................................           
    Not more than six ounces.................................           
    Not more than seven ounces...............................           
    Not more than eight ounces...............................           
    Not more than nine ounces................................           
    Not more than ten ounces.................................           
    Not more than eleven ounces..............................           
    Not more than thirteen ounces............................           
    More than thirteen But less than sixteen ounces .........           
[[Page 16892]]
                                                                        
[THE POSTAL SERVICE DOES NOT REQUEST ANY CHANGE IN THIS                 
 SCHEDULE OTHER THAN THE ORGANIZATIONAL CHANGES NOTED WITHIN,           
 INCLUDING THE RELOCATION OF THE FOOTNOTES TO THE                       
 CLASSIFICATION SCHEDULE]                                               
Nonstandard Surcharge                                                   
Keys and identification devices:                                        
    First 2 ounces                                                      
    Each additional 2 ounces                                            
------------------------------------------------------------------------

  5. Replace Rate Schedule 301 with proposed Rate Schedules 321.2, 
321.3 and 321.4.

           Standard Mail Rate Schedule 321.2 Regular Subclass           
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Letter Size:                                                            
  Piece Rate:                                                           
      Basic..................................................       26.1
      3/5-Digit..............................................       21.9
  Destination Entry Discount Per Piece:                                 
      BMC....................................................        1.3
      SCF....................................................        1.7
Non-Letter Size:                                                        
  Minimum Per Piece Rate:                                               
      Basic..................................................       30.5
      3/5-Digit..............................................       23.7
  Destination Entry Discount Per Piece                                  
      BMC....................................................        1.3
      SCF....................................................        1.7
  Pound Rate:                                                       68.7
    Plus Per Piece Rate:                                                
        Basic................................................       16.3
        3/5-Digit............................................        9.5
  Destination Entry Discount Per Pound:                                 
      BMC....................................................        6.1
      SCF....................................................        8.1
------------------------------------------------------------------------


          Standard Mail Rate Schedule 321.3 Automation Subclass         
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Letter Size:                                                            
  Piece Rate:                                                           
    Basic Letter.............................................       17.5
    3-Digit Letter...........................................       16.8
    5-Digit Letter...........................................       15.0
    Carrier Route Letter.....................................       14.1
  Destination Entry Discount Per Piece:                                 
    BMC......................................................        1.3
    SCF......................................................        1.7
    DDU......................................................        2.2
Flat Size:                                                              
  Minimum Per Piece Rate:                                               
    Basic Flat...............................................       23.7
    3/5-Digit Flat...........................................       19.0
  Destination Entry Discount Per Piece:                                 
    BMC......................................................        1.3
    SCF......................................................        1.7
  Pound Rate:                                                       51.0
    Plus Per Piece Rate Basic Flat...........................       13.2
    3/5-Digit Flat...........................................        8.5
  Destination Entry Discount Per Pound:                                 
    BMC......................................................        6.1
    SCF......................................................        8.1
------------------------------------------------------------------------


    Standard Mail Rate Schedule 321.4 Enhanced Carrier Route Subclass   
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Minimum Per Piece Rate:                                                 
  Basic......................................................       15.5
  High Density...............................................       14.8
  Saturation.................................................       13.5
Destination Entry Discount Per Piece:                                   
  BMC........................................................        1.3
  SCF........................................................        1.8
  DDU........................................................        2.3
Pound Rate:                                                         51.0
  Plus Per Piece Rate                                                   
    Basic....................................................        5.0
    High Density.............................................        4.3
    Saturation...............................................        3.0
Destination Entry Discount Per Pound:                                   
  BMC........................................................        6.4
  SCF........................................................        8.5
  DDU........................................................       11.1
------------------------------------------------------------------------

    6. Amend Rate Schedules 302, 400, 401, 402, 405, and 406 as 
follows:
Standard Mail Rate Schedule 321.5 Nonprofit Subclass\1\
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedules 322.1A, 322.2A Parcel Post and Bulk Parcel 
Post Subclasses Basic Rates*
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedules 322.1B and 322.2B Parcel Post and Bulk 
Parcel Post Subclasses Destination BMC Rates*
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedule 322.3A Bound Printed Matter Subclass Single 
Piece Rates*
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedule 322.3B Bound Printed Matter Subclass Bulk 
and Carrier Route Presort Rates\1\
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedule 323.1 Special Subclass
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Standard Mail Rate Schedule 323.2 Library Subclass
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
    7. Replace Rate Schedule 200 with proposed Rate Schedules 421 and 
422.

             Periodicals Rate Schedule 421 Regular Subclass             
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Per Pound:                                                              
  Nonadvertising portion                                            19.4
    Advertising portion:                                                
      DDU....................................................       21.8
      SCF....................................................       23.9
      Zone 1 & 2.............................................       25.9
        3....................................................       26.8
        4....................................................       29.4
        5....................................................       33.2
        6....................................................       37.2
        7....................................................       42.0
        8....................................................       46.2
    Science of Agriculture:                                             
      DDU, SCF, Zone 1 & 2: The Postal Service does not                 
       request any change in these rates                                
      Zone 1 & 2}IN THESE RATES]                                        
Per Piece: Less Nonadvertising Discount of 0.066 Cents for              
 Each 1% of Nonadvertising Content:                                     
  Basic......................................................       27.2
  3/5-Digit..................................................       21.7
  Carrier Route..............................................       16.6
  Discounts:                                                            
    DDU......................................................        2.1
    SCF......................................................        1.1
    High Density.............................................        0.7
    Saturation                                                       2.0
  Automation Discounts:                                                 
    From Basic:                                                         
      Barcoded Letter........................................        4.6
      Barcoded Flat..........................................        3.5
  From 3/5-Digit:                                                       
    Barcoded Letter..........................................        2.9
    Barcoded Flat............................................        2.9
------------------------------------------------------------------------


                                                                        
[[Page 16893]]
       Periodicals Rate Schedule 422 Publications Service Subclass      
------------------------------------------------------------------------
                                                                  Rate  
                                                                (cents) 
------------------------------------------------------------------------
Per Pound:                                                              
  DDU........................................................       10.8
  SCF........................................................       12.9
  Zone 1 & 2.................................................       15.0
    3, 4 & 5.................................................       19.3
    6, 7 & 8.................................................       31.1
Per Piece:                                                              
  Basic......................................................       14.7
  Carrier Route..............................................        8.3
  Discounts:                                                            
    DDU......................................................        2.1
    SCF......................................................        1.1
------------------------------------------------------------------------

  8. Amend Rate Schedules 201, 202, and 203 as follows:
Periodicals Rate Schedule 423.2 Within County
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Periodicals Rate Schedule 423.3 Publications of Authorized Nonprofit 
Organizations\10\
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
Periodicals Rate Schedule 423.4 Classroom Publications\10\
    [The Postal Service does not request any change in this schedule 
other than the organizational changes noted above]
    9. Amend Rate Schedules SS-4, SS-13 and 1000, by inserting the 
underlined text and deleting the text set off with brackets, as 
follows:

                 Schedule SS-4: Certificates of Mailing                 
------------------------------------------------------------------------
                                          (Fee in addition to postage)  
------------------------------------------------------------------------
Individual pieces:                                                      
    Original certificate of mailing    [THE POSTAL SERVICE DOES NOT     
     for listed pieces of all classes   REQUEST ANY CHANGE IN THESE     
     of ordinary mail (per piece)       FEES]                           
    Three or more pieces individually                                   
     listed in a firm mailing book or                                   
     an approved customer provided                                      
     manifest (per piece)                                               
    Each additional copy of original                                    
     certificate of mailing or                                          
     original mailing receipt for                                       
     registered, insured, certified                                     
     and COD mail (each copy)                                           
Bulk pieces                                                             
    Identical pieces of [f]First-                                       
     Class and [third-]Single Piece,                                    
     Regular, Automation, Enhanced                                      
     Carrier Route, and Nonprofit                                       
     Standard [class m]Mail paid with                                   
     ordinary stamps, precanceled                                       
     stamps, or meter stamps are                                        
     subject to the following fees:                                     
        Up to 1,000 pieces (one                                         
         certificate for total                                          
         number)                                                        
        Each additional 1,000 pieces                                    
         or fraction Duplicate copy                                     
                                                                        
------------------------------------------------------------------------
   Schedule SS-13: Parcel Air Lift                                      
                                                                        
------------------------------------------------------------------------
Weight                                 Fee (In addition to [p]Parcel    
                                        [p]Post postage)                
                                                                        
------------------------------------------------------------------------
Up to 2 pounds                                                          
Over 2 up to 3 pounds                                                   
Over 3 up to 4 pounds                                                   
Over 4 pounds                          [THE POSTAL SERVICE DOES NOT     
                                        REQUEST ANY CHANGE IN THESE     
                                        FEES]                           
                                                                        
------------------------------------------------------------------------
         Schedule 1000--Fees                                            
                                                                        
------------------------------------------------------------------------
First-Class [p]Presorted [m]Mailing                                     
 [f]Fee.                                                                
[Second-class]Periodicals [mailing]                                     
 [f]Fees:.                                                              
    A. Original [e]Entry.............                                   
    B. Additional [e]Entry...........                                   
    C. Publications Service Entry....                                   
    D. [Second-class] [r]Re-entry                                       
     [fee].                                                             
    E. [Second-class] [r]Registration                                   
     for [n]News [a]Agents.                                             
[Third-class]Regular, Automation,                                       
 Enhanced Carrier Route, and                                            
 Nonprofit Standard Mail [b]Bulk                                        
 [m]Mailing [f]Fee.                                                     
[Fourth-class p]Parcel [p]Post:                                         
 [d]Destination BMC[/ASF]                                               
[Fourth-class] [s]Special Standard                                      
 [m]Mail [p]Presorted [m]Mailing                                        
 [f]Fee                                                                 
Authorization to [u]Use [p]Permit                                       
 [i]Imprint                                                             
Merchandise [r]Return (per facility                                     
 receiving merchandise return labels)                                   
Business [r]Reply [m]Mail [p]Permit    [THE POSTAL SERVICE DOES NOT     
                                        REQUEST ANY CHANGE IN THESE     
                                        FEES] $305.00 [THE POSTAL       
                                        SERVICE DOES NOT REQUEST ANY    
                                        CHANGE IN THESE FEES]           
------------------------------------------------------------------------

 [[Page 16894]] [FR Doc. 95-8107 Filed 3-31-95; 8:45 am]
BILLING CODE 7710-FW-P