[Federal Register Volume 60, Number 146 (Monday, July 31, 1995)]
[Proposed Rules]
[Pages 39080-39088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18629]




[[Page 39079]]

_______________________________________________________________________

Part II





Postal Service





_______________________________________________________________________



39 CFR Part 111



Revisions to Standards for Palletization; Proposed Rule

  Federal Register / Vol. 60, No. 146 / Monday, July 31, 1995 / 
Proposed Rules   

[[Page 39080]]


POSTAL SERVICE

39 CFR Part 111


Revisions to Standards for Palletization

AGENCY: Postal Service.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule modifies previously published proposed 
revisions to the Domestic Mail Manual (DMM) standards concerning the 
preparation of mail on pallets. See 59 FR 42536-42540 (August 18, 
1994). As a result of further review of postal operating needs and 
comments received in response to the proposal, both in writing and at a 
public meeting, the Postal Service has modified its original proposal 
and has decided to provide additional opportunity for comment.
    This proposed rule is intended to establish certain basic 
preparation standards, such as levels of sortation and maximum pallet 
loads, that mailers will be required to meet for all classes of mail. 
Mailers will have more flexibility in other areas of pallet 
preparation, such as top-capping, stacking, pallet box construction, 
absolute minimum volumes, and stretchwrapping of pallets.

DATES: Comments must be received on or before August 30, 1995.

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

FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: The proposed revised makeup standards grew 
out of the proposed rule published in the Federal Register on August 
18, 1994 (59 FR 42536-42540). These standards are based both on current 
Postal Service processing needs and safety concerns and on mailers' 
comments concerning their processing abilities, service needs, and 
transportation methods.
1. General

    This proposed rule is intended to establish certain basic 
preparation standards, such as levels of sortation and maximum pallet 
loads, that mailers will be required to meet for all classes of mail. 
Mailers will have more flexibility in other areas of pallet 
preparation, such as top-capping, stacking, pallet box construction, 
absolute minimum volumes, and stretchwrapping of pallets.
    Pallet loads may be prepared according to best industry practices, 
provided that these standards result in pallets that can be handled 
safely and that maintain their integrity throughout transportation and 
postal processing. Recommended guidelines, developed by Postal Service 
Engineering, will also be published in the DMM for those mailers 
seeking assistance in establishing optimal preparation methods to 
ensure that their products arrive at the proper destinations in the 
condition expected.
    The use of pallets that are not provided by the Postal Service and 
that are not prepared to the required levels of sortation (sometimes 
referred to as ``courtesy pallets'') is recognized as a key issue to 
many mailers. A revised policy regarding the definition, preparation, 
and acceptance of such pallets is included in the new proposed rule 
published below.
    The Postal Service will rely on a consistent mechanism to enforce 
standards and provide feedback to those mailers who are not preparing 
pallets in a manner that maintains the integrity of loads throughout 
transportation and processing. Under the revised proposed standards, 
all pallets presented to the Postal Service for acceptance, whether the 
pallets are provided by the Postal Service or the mailer, must meet the 
basic standards in the DMM pertaining to the following:
    a. Pallet labels.
    b. Physical pallet dimensions (40 inches by 48 inches, designed for 
four-way entry, etc.).
    c. Pallet load integrity, stacking, and minimum and maximum loads 
and heights.
    d. Package, sack, and tray preparation.
    e. Permissible levels of sortation applicable to the class and type 
of mail placed on the pallets.
    The flexibility in pallet minimum weights and the increase in 
maximum pallet height and tiers of trays described below should promote 
and facilitate mailers' adherence to makeup requirements. Exceptions 
for acceptance of pallets that do not meet basic DMM standards for 
height, weight, safety, load integrity, and permissible levels of 
sortation undermine efforts to assure safe and efficient handling of 
palletized loads. Such exceptions will not be permitted. (See section 
8, Pallets Not Prepared to Finest Depth of Sort, which provides some 
relief for mailers who currently have difficulty preparing mailings on 
pallets to the required levels of sortation.)
    In addition, the Postal Service will consider individual pallet 
shipments that are entered under the plant-verified drop shipment 
(PVDS) program to be bedloaded if the load integrity of the pallets is 
compromised when they are presented for acceptance at a destination 
entry postal facility, such that the shipment requires driver 
unloading.
    The Postal Service will establish a standardized system to monitor 
load integrity of customers' pallets at mailers' plants where mailings 
are prepared (when mail is verified by on-site postal personnel) and at 
postal facilities where mailings are entered and will inform mailers 
when their preparation methods result in pallets that do not meet the 
basic pallet integrity and safety standards (for example, the load on 
pallet is not secure, has toppled, is leaning, or exceeds the maximum 
weight or height restrictions). In conjunction with a steering 
committee of customers, the Postal Service is currently formulating 
specific standards for identifying, quantifying, handling, and 
providing feedback regarding pallet load integrity problems and 
requests comments on that issue. Where possible, this feedback system 
will be incorporated into the existing Drop Shipment Appointment System 
(DSAS).
    After notification and an opportunity to make changes to improve 
load integrity, if the mailer's methods still do not work, the mailer 
will be required to meet the specifications developed by Postal Service 
Engineering for strapping of single pallets, stretchwrapping of 
pallets, pallet box construction and dimensions, stacking of pallets, 
maximum height/tiers of trays, and top-cap use. The specifications were 
published in the original proposed rule and are included in the 
proposed DMM revisions that follow. Mailers will be suspended from the 
pallet program if their pallets continue to fail to meet the minimum 
load integrity levels that Postal Service Engineering specifications 
are aimed to reach.
2. Bulk Mail Center Processing Needs

    The proposed sortation and preparation standards described below 
will address existing capacity constraints and keep the bulk mail 
center (BMC) network flowing smoothly by moving as much mail as 
possible farther into the distribution network through pallet cross-
dock operations.
    These standards will further the Postal Service's current priority 
of providing relief to the BMCs for processing packages of flats and 
trayed letter mail. Relaxed standards on pallet minimum and maximum 
load size for 

[[Page 39081]]
these mail types will provide the most relief to the BMCs without 
extending Postal Service pallet-handling resources beyond supportable 
limits.
    The initial proposal to require that all trays on BMC pallets and 
working pallets must be strapped, regardless of where the pallets are 
deposited, remains unchanged. Mailers will not be required to strap 
trays placed on pallets made up to finer levels of sortation. This 
option will provide an inducement to mailers to prepare pallets to the 
finest depth of sort, allowing for greater cross-dock opportunities at 
the BMCs and providing relief for BMC operations heavily affected by 
unstrapped trays.
    The requirement that exists in current regulations to sleeve all 
trays containing letter-size automation rate mail that does not 
originate and destinate in the delivery area of the same SCF and that 
may be processed at a BMC or AMF is extended to include trays 
containing non-automation rate letter-size mail.

3. Height and Weight Restrictions

    The maximum weight for any single pallet or any pallets stacked 
together (pallets and mail) is 2,200 pounds as originally proposed.
    Pallet maximum height restrictions are increased to 84 inches for 
stacked pallets as well as for single pallets with pallet boxes. Pallet 
loads exceeding 84 inches, however, pose safety concerns and handling 
problems because of the heights of dock doors and ceilings within 
postal facilities and the heights of doors and internal spaces within 
Postal Service trailers and other vehicles. This change is more 
consistent with current practices of many mailers using pallet boxes 
and stacking smaller pallets to make optimum use of transportation for 
drop shipping and is an increase from the initial proposed maximum of 
77 inches for all pallets including stacked pallets.
    The maximum height for single pallets containing packages or sacks 
(not placed in pallet boxes) will remain at 77 inches as originally 
proposed. This height limit should not negatively impact mailers 
because packages on pallets will usually reach the weight maximum of 
2,200 pounds before reaching the height limit.
    If the Postal Service identifies any non-BMC postal facilities that 
cannot accommodate a pallet load as high as 84 inches because of 
physical limitations (for example, low dock door or ceiling heights or 
other physical obstructions), mailers participating in the plant-
verified drop shipment (PVDS) program will be advised of these 
limitations when they make appointments to deposit mailings. In any 
such limited situation, mailers may be asked to prepare pallets less 
than 84 inches high until the plants are modified to accept standard 
pallet loads.
    Under the revised rules for packages, parcels, and sacks on 
pallets, mailers must prepare a required level of pallet when they have 
500 pounds of mail for that destination. When smaller loads are 
desirable, mailers may prepare pallets for any required or optional 
levels of sortation when they have from 250 to 499 pounds of mail for a 
destination. The minimum weight used to build pallet loads may vary 
from 250 to 500 pounds for pallets within a single mailing. The 
original proposal required pallet preparation at 250 pounds.
    Trays of letter-size mail on pallets are prepared based on the 
number of tiers. The revised rules give mailers the option of preparing 
a pallet when they have from three to five tiers of 1- or 2-foot 
managed mail (MM) or extended managed mail (EMM) trays with a mandatory 
preparation requirement at six tiers. The minimum may vary for pallets 
within a single mailing.
    The maximum load for trays on pallets is 12 tiers, not to exceed 
2,200 pounds gross. The original proposal would have required mailers 
to prepare a pallet when they had three tiers of MM trays or two tiers 
of EMM trays for a required level of sortation.
    When placing trays on pallets, mailers must take extra precautions 
to place the fullest trays on the bottom and the least full trays on 
top to avoid crushing the lower trays and causing the entire load to 
topple.
    Mailers are reminded that under the Postal Service's guidelines for 
the plant-verified drop shipment (PVDS) program, the driver is required 
to unload mail entered at delivery units. In some instances, this 
unloading requires breaking down palletized loads because of the 
physical limitations of a delivery unit such as small or congested 
offices that cannot accommodate large or stacked pallets.
4. Stacking Pallets

    The Postal Service is proposing to allow mailers to double-stack or 
triple-stack pallets up to the maximum allowable height and weight (84 
inches/2,200 pounds total for the stacked pallets), provided that such 
pallets are presented for acceptance at the mailer's plant or a postal 
facility in a manner that ensures safe and efficient unloading, 
handling, and transporting. Triple-stacking will allow mailers to make 
better use of transportation for drop shipments when low-weight pallets 
are prepared.
    When stacking pallets, the mailer must place the heaviest pallet on 
the bottom and the lightest pallet on the top to prevent crushing or 
other damage to mail on the bottom. If part of the load is crushed, the 
entire load is likely to collapse.
    Stacked pallets must be top-capped (except for the top pallet) and 
banded together. The top caps must provide a flat surface for safe and 
efficient stacking and must be of sufficient quality to maintain the 
integrity of the load and protect the mailpieces. The Postal Service 
will closely monitor the preparation of all stacked pallets, 
particularly those that are triple-stacked, to ensure that they can be 
handled safely and without damage to the mail on the pallets.
    Whenever possible, Mailers are requested to place pallets for the 
same processing facility together to facilitate moving as much mail as 
possible directly into cross-dock operations at BMCs for further 
movement into the distribution network.

5. Pallet Boxes

    Pallet boxes may be used to hold parcels and sacks. The revised 
proposal allows mailers to use pallet boxes constructed of single-wall 
or double-wall corrugated fiberboard, as well as triple-wall corrugated 
fiberboard, provided that the pallet box and its load maintain their 
stability and integrity throughout transportation and postal 
processing. In the original proposal, mailers were required to use 
pallet boxes constructed of triple-wall corrugated fiberboard.
    The height of pallet boxes will not be limited except by the 
maximum combined pallet, box, and mail load (contents of the box) 
height of 84 inches or by those non-BMC postal facilities that do not 
have equipment for handling or unloading full-size pallet boxes (boxes 
more than 60 inches high).
    Boxes must be secured to the pallet to ensure that they can be 
safely unloaded from vehicles (and reloaded, if necessary) and 
processed as a single unit to the point where the contents are 
distributed. The mail must be evenly distributed within the pallet box 
so that the load does not shift in transit and cause the box to break, 
topple, or fall off the pallet in transit or during processing.
    The flexibility in box construction will provide mailers with the 
opportunity to use boxes that are compatible with those used in their 
other manufacturing processes and to minimize costs. However, if the 
Postal Service notifies a mailer that the mailer's pallet boxes 
continually fail to 

[[Page 39082]]
remain intact or that the loads in any way do not meet the basic pallet 
integrity standards (for example, the load on pallet is not secure or 
completely contained, has toppled, is leaning, or exceeds the maximum 
weight or height restrictions), the mailer will be required to meet the 
Postal Service preparation standards developed by Postal Service 
Engineering, including the use of triple-wall corrugated fiberboard 
boxes.

6. Top-Capping

    Under the new proposal, mailers are required to top-cap only 
stacked pallets (the bottom pallet if pallets are presented to the 
Postal Service double-stacked; the bottom and middle pallets if pallets 
are presented triple-stacked). Mailers may determine the best method 
for ensuring pallet integrity and will have the opportunity to use 
manufacturing materials that already come into their plants as top-
capping material. Mailers must not use flimsy paper obtained from ends 
of paper rolls or similar material as top caps because this material, 
used alone, can cause stack failure.
    The Postal Service's original proposal required top caps meeting 
strict Postal Service Engineering construction standards on all pallets 
other than on full-size pallet boxes. Mailers will be required to meet 
these strict standards only after they are informed by the Postal 
Service that their methods do not ensure the integrity of mail on 
pallets that they prepare.

7. Pallet Strapping

    The original proposal to require mailers to strap or band (the 
terms are used interchangeably) all pallets is also relaxed. Depending 
on the characteristics of a mail load, strapping might not be the most 
effective method of ensuring load integrity throughout transportation 
and processing.
    Loads can compress themselves during storage in a mailer's plant or 
while in transit, causing strapping to become loose. In those 
instances, stretchwrap can be more effective in securing loads on a 
single pallet.
    Mailers are required to strap all stacked pallets together with at 
least two straps. The strap must be plastic or metal at least \1/2\ 
inch wide. The minimum breaking strength for plastic strapping must be 
at least 800 pounds and for metal strapping at least 1,200 pounds. 
These minimums ensure that the strapping does not break and cause 
injuries to postal employees handling pallets.

8. Pallets Not Prepared to Finest Level of Sort

    The Postal Service recognizes that some mailers have difficulty 
preparing mailings on pallets to the proposed required levels of 
sortation and that these mailers will need an opportunity to make 
necessary changes to their systems and to work with their customers to 
generate mailings in a manner that is more compatible with placing the 
mailings onto the required levels of pallets.
    To accommodate these needs, the Postal Service will allow mailers 
to place mailings onto pallets that are not prepared to the required 
finest levels of sortation for a period not to exceed 6 months from the 
effective date of the final rule implementing this proposed rule.
    Regardless of the level of sortation and whether postal or mailer-
provided pallets are used, all pallets must meet all other DMM 
standards for preparation and labeling based on the class and type of 
mail.
    During this 6-month transition, mailers will be required, at a 
minimum, to sort individual mailings (a mailing represented by a single 
mailing statement) to a destination BMC (state distribution center 
(SDC) for second-class mail) when there are 500 pounds or more of mail 
(or six tiers of trays) within a single mailing to that BMC/SDC if 
mailings are presented to destination entry offices under the PVDS 
program.
    Remaining mail may be sacked or bedloaded or placed onto residual 
or working pallets properly labeled to the origin BMC/SDC or plant (see 
section 10, Pallet Sortation). Mailers will be required to comply with 
all DMM standards after the 6-month phase-in.

9. Placement of Automation and Non-Automation Rate Letter-Size 
Mailings in Trays on Pallets

    Mailers may place trays from letter-size automation rate mailings 
onto pallets together with trays from letter-size non-automation rate 
mailings prepared to any level of sortation except the optional 5-digit 
level. This placement will allow mailers to achieve finer levels of 
sortation using fewer pallets.
10. Pallet Sortation

    The proposed required and optional sortations, which are consistent 
with national distribution network policy changes, are shown in the 
following chart.

----------------------------------------------------------------------------------------------------------------
                   Class and category                                           Sortation                       
----------------------------------------------------------------------------------------------------------------
2C/3C letter-size mail (in trays/sacks on pallets).....  Required: SCF, BMC \1\ (3C)/SDC(2C).                   
                                                         Optional: 5D, ADC, working pallet.\2\                  
2C/3C/4C flats, irregular parcels, and outside parcels.  Required: 5D, SCF.                                     
                                                         Optional: 3D, ADC, BMC \1\ (3C/4C)/SDC(2C), working    
                                                          pallet.\2\                                            
3C/4C machinable parcels...............................  Required: 5D, BMC.\1\                                  
                                                         Optional: working.\2\                                  
----------------------------------------------------------------------------------------------------------------
\1\ Or ASF for third-class and fourth-class DBMC discounts, as applicable.                                      
\2\ Origin BMC(3C/4C)/SDC(2C) or plant pallet for residual mail. Labeled to BMC/SDC or plant serving post office
  where mailings are entered (accepted) into mailstream. May be prepared after all required and optional levels 
  of pallets are prepared. Limited to 10 percent of total pallets in any mailing or job. When insufficient      
  volume to prepare finer levels of required pallets for a mailing or job, working pallets for non-PVDS mailings
  may be prepared in excess of 10 percent limit (all possible optional BMC/SDC pallets must be prepared first,  
  where applicable).                                                                                            

    The proposed option to prepare area distribution center (ADC) 
pallets for mail other than machinable parcels will improve processing 
opportunities.
    Current DMM standards preclude mailers from placing onto pallets 
SDC, state, and mixed-states packages of second-, third-, and fourth-
class mail and trays of residual mail from automation-rate mailings. 
SDC, state, and mixed-states packages are generally placed into sacks.
    These sacks, like trays of residual mail, may not be placed onto an 
authorized level of pallet and are generally bedloaded, placed loose in 
a vehicle on top of authorized pallets, or placed onto unauthorized or 
``courtesy pallets'' for transport to an entry postal facility.
    Because of these restrictions, some mailers cannot create 100 
percent palletized mailstreams and these mailers might have to retain 
sacking operations for a small portion of their mail, while preparing 
the balance as packages placed directly onto pallets. 

[[Page 39083]]
These operational inefficiencies also affect the Postal Service when 
these partially palletized loads are unloaded from vehicles at entry or 
downstream postal facilities.
    In order to provide mailers with additional opportunities to 
eliminate split production lines (for example, packages on pallets and 
packages in sacks), the new proposed rule allows mailers to palletize 
trays of residual letter-size mail and to place SDC, state, and mixed-
states packages of flats meeting the package preparation standards for 
packages onto pallets.
    Trays of residual mail from automation mailings may be placed onto 
the appropriate level of pallet where possible (for example, AADC trays 
on ADC or BMC pallets). Trays of working mail and SDC, state, and 
mixed-states packages may be placed onto working pallets labeled to the 
origin BMC or SDC or to the plant serving the office where mailings are 
entered.
    As noted above, working pallets must not exceed 10 percent of the 
total number of pallets for a single mailing or job. These working 
pallets must be loaded to the maximum to minimize pallet handlings.
    When placing mail onto pallets, if there is a conflict between the 
labeling lists (service area ZIP Codes) of the container (for example, 
tray or sack) and the pallet on which it is placed (for example, the 
range of ZIP Codes assigned to a single SCF or a single AADC may be 
assigned (split) to two or more BMCs), mailers must place the container 
onto the pallet for the facility serving the ZIP Code on the 
destination (top) line of the container. Any applicable destination 
entry discounts may be claimed for mail properly palletized in this 
manner.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), 553(c)) regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
comments on the following proposed revisions of the Domestic Mail 
Manual, incorporated by reference in the Code of Federal Regulations. 
See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

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

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise the following units of the Domestic Mail Manual as noted 
below:

E--Eligibility

* * * * *
E300 THIRD-CLASS MAIL
* * * * *
E333 CARRIER ROUTE PRESORT
* * * * *
3.0 PRESORT
[Introductory paragraph 3.1 previously revised in Postal Bulletin 
21888, March 2, 1995, as follows:]

3.1 Qualifying Mail

    Each qualifying piece must be part of a group of 10 or more 
addressed pieces correctly packaged to the same carrier route that is, 
in turn, correctly placed in a carrier route, 5-digit carrier routes, 
or 3-digit carrier routes tray or sack. Such trays must be full; sacks 
must contain at least 125 addressed pieces or 15 pounds of addressed 
pieces. Qualifying mail also includes:
* * * * *
[Add new 3.1c as follows:]
    c. Correctly presorted carrier route packages correctly sorted to 
the appropriate level of pallet.
* * * * *
E350  Destination Entry Discounts
* * * * *
3.0  Deposit
* * * * *
[Revise the heading and introductory paragraph of 3.8 as follows:]

3.8  Unloading

    The unloading of vehicles is subject to these conditions:

[Add new 3.8a and redesignate current 3.8a through 3.8c as 3.8b through 
3.8d, respectively.]
    a. Properly prepared containerized loads (e.g., pallets) are 
unloaded by the USPS at BMCs, ASFs, and SCFs. The USPS does not unload 
or permit a mailer/mailer agent to unload containerized loads that have 
not maintained their integrity in transit.

[Amend redesignated 3.8b by deleting the second sentence as follows:]
    b. At delivery units, the driver must unload containerized drop 
shipments within 1 hour of arrival.
* * * * *
E400  FOURTH-CLASS MAIL
* * * * *
E416  Special Fourth-Class Rates
* * * * *
2.0 SPECIAL FOURTH-CLASS PRESORT
* * * * *
[Revise the first sentence of the introductory paragraph of 2.6 
(previously revised and redesignated from 2.5 to 2.6 in Postal Bulletin 
21884, January 5, 1995) as follows:]

2.6 Level A

    To qualify for the special fourth-class presort level A rate, a 
piece must be in a mailing of at least 500 pieces receiving identical 
service, properly prepared and presorted under M404 in full 5-digit 
sacks or under M044 on 5-digit pallets. These conditions also apply:
* * * * *
[Revise the first sentence of 2.7 (previously revised and redesignated 
from 2.6 to 2.7 in Postal Bulletin 21884, January 5, 1995) as follows:]

2.7 Level B

    To qualify for the special fourth-class presort level B rate, a 
piece must be in a mailing of at least 500 pieces receiving identical 
service, properly prepared and presorted under M404 in full or 
substantially full bulk mail center (BMC) sacks or under M044 on 
destination BMC pallets. Mailings of at least 500 nonmachinable outside 
parcels may qualify for presort level B if made up to preserve presort 
by BMC as prescribed by the mailing office postmaster. The postmaster 
may require up to a 24-hour notice before the mailing is presented.
* * * * *
E450  DESTINATION BMC/ASF DISCOUNT
* * * * *
3.0  DEPOSIT
* * * * *
[Revise the introductory paragraph of 3.8 as follows:]

3.8  Unloading

    The unloading of DBMC mailings is subject to these conditions:

[Revise 3.8a as follows:]
    a. Properly prepared containerized loads (e.g., pallets) are 
unloaded by the USPS. The USPS does not unload or permit a mailer/
mailer agent to unload containerized loads that have not maintained 
their integrity in transit.
* * * * *

L--Labeling Lists

* * * * *
[Revise the heading of L101 as follows:]
L101 ADCs--PRESORTED FIRST-CLASS, ALL ZIP+4 BARCODED FLAT-SIZE 
MAILINGS, AND ALL ADC PALLETS
* * * * * 

[[Page 39084]]


M--Mail Preparation and Sortation

M000  GENERAL PREPARATION STANDARDS
* * * * *

M030  Container Preparation

M031  Labels

* * * * *
[Amend 4.8 by deleting the words ``optional city'' in the first 
sentence as follows:]

4.8  Delivery Office, SCF, DDU, and DSCF Rates

    If a 5-digit, 3-digit, or SCF pallet contains copies claimed at 
second-class delivery office and SCF zone rates, or third-class DDU and 
DSCF rates, as applicable, the contents line of the pallet label must 
show the designation DDU/SCF, after the description of the contents.
* * * * *

M033  Sacks and Trays

1.0  BASIC STANDARDS
* * * * *
[Add new 1.4 and 1.5 as follows:]

1.4  Sleeving and Strapping

    Except under 1.5, each letter mail tray must be sleeved. All 
nonpalletized trays of letter mail transported from the mailer's plant 
to a BMC, ASF, or AMF on USPS or mailer transportation and all trays 
placed on BMC or mixed BMC/SDC pallets must also be secured by a 
plastic strap placed tightly around the length of the tray. The strap 
must not crush the tray or sleeve. Strapping is not required on trays 
placed on pallets prepared to finer levels of sortation.
1.5  Sleeving Exception

    When all pieces in a mailing originate and destinate in the 
delivery area of the same SCF and the trays containing those pieces are 
not processed at a BMC or AMF, the processing and distribution manager 
may (on request) issue a written authorization to the mailer to submit 
the mailing in trays without sleeves.
* * * * *
[Revise the heading of 3.0 as follows:]
3.0  BASIC STANDARDS FOR TRAYS--AUTOMATION RATES
* * * * *
[Delete current 3.6 and 3.7.]

M040  Palletization

[Revise the heading of M041 as follows:]

M041  Standards for Palletized Mailings

[Revise the heading of 1.0 as follows:]
1.0  PHYSICAL PALLET CHARACTERISTICS
[Amend 1.1 by deleting ``and a volume of up to 65 cubic feet'' in the 
second sentence as follows:]

1.1  Construction

    Whether provided by the USPS or mailer, all pallets in a palletized 
mailing must be made of high-quality material. Pallets must be designed 
to hold loads equal to a gross weight of 2,200 pounds.
* * * * *
[Revise the heading of 1.4 and amend the section by adding ``Except for 
pallet boxes under 4.3,'' as follows:]

1.4  Stretchwrap

    Except for pallet boxes under 4.3, loaded pallets of mail must be 
wrapped with shrinkable or stretchable plastic strong enough to retain 
the integrity of the pallet during transportation and handling.

[Add new 1.5 and 1.6 as follows:]

1.5  Nonstandard Pallets Prohibited

    All mail on pallets presented to the USPS, whether on postal 
pallets or mailer-provided pallets, must meet the standards in 1.1 
through 1.4 and the standards applicable to the class and type of mail 
placed on the pallets.

1.6  Nonconforming Mailers

    The USPS informs mailers when their preparation methods result in 
pallets that fail to meet the basic pallet integrity and safety 
standards (e.g., load on pallet is not secure, has toppled, is leaning, 
exceeds the maximum weight or height restrictions). Where possible, 
this feedback system is incorporated into the existing Drop Shipment 
Appointment System (DSAS). Once notified and given an opportunity to 
make changes to improve load integrity, if a mailers methods do not 
work, the mailer is considered nonconforming and is required to meet 
the specifications in 2.0 through 5.0 for nonconforming mailers for 
top-cap use, stacking of pallets, pallet box construction, and maximum 
height/tiers of trays. Mailers are suspended from the pallet program if 
their pallets continue to fail to meet the minimum load integrity 
levels.
[Revise current 2.0 as follows:]
2.0  TOP CAPS

2.1  Use

    Top caps are required on the lower pallet(s) when pallets are 
stacked. Pallets that are not stacked when presented to the USPS for 
acceptance are not required to be top-capped. Flimsy paper (e.g., the 
ends of paper rolls) or similar material must not be used alone as a 
top cap. Any other material that protects the integrity of the mail may 
be used.

2.2  Securing

    When used, a top cap must be secured to the pallet, horizontal to 
the plane of the pallet, with strapping, banding, or stretchwrap strong 
enough to keep the cap in place so that it protects the mail and 
maintains the integrity of the pallet load. At least two straps are 
required.
2.3  Nonconforming Mailers

    Nonconforming mailers (see 1.6) must use top caps on all loaded 
pallets, regardless of weight, holding letter trays (MM and EMM) of 
mail, packages of mail, and bricklayed parcels. Top caps are not 
required on loaded pallets, regardless of weight, holding either sacks 
or parcels contained in fiberboard pallet boxes prepared under 4.0. Top 
caps must be approximately 48 inches long, 40 inches wide, and meet any 
of these construction standards:
    a. Five wood boards with uniform edges and nine-leg pallet contact 
for stacking.
    b. Fiberboard box end style, with minimum 3-inch side, with wall 
material a minimum of double-wall corrugated fiberboard C and/or B 
flute.
    c. Fiberboard honeycomb covered on both sides with heavy 
linerboard, minimum \1/2\ inch thick.
    d. Corrugated fiberboard C flute sheet covering the entire top of 
the load with standard pallet solid fiberboard corner edge protectors.

[Amend current 3.0 by combining current 3.1 and 3.2 and adding new 3.2 
and 3.3 as follows:]
3.0  STACKING PALLETS

3.1  Double- or Triple-Stacking

    Pallets may be double- or triple-stacked if the combined gross 
weight of the stacked pallets is not more than 2,200 pounds; the 
heaviest pallet is on the bottom and the lightest pallet is on the top; 
the pallets are banded together with appropriate strapping material to 
maintain their integrity during transportation and handling; each lower 
pallet is top-capped; and the combined height of the stacked pallets is 
not more than 84 inches.

3.2  Same Facility

    Pallets for the same processing facility should be stacked together 
when possible.

3.3  Nonconforming Mailers

    Nonconforming mailers (see 1.6) who stack pallets must do so as 
follows:
    a. Pallets may be double-stacked if the combined gross weight of 
the stacked 

[[Page 39085]]
pallets is not more than 2,200 pounds; the heavier pallet is on the 
bottom; the pallets are banded together with appropriate strapping 
material to maintain their integrity during transportation and 
handling; and the combined height of the stacked pallets is not more 
than 77 inches. Pallets of sacks not placed in fiberboard boxes must 
not be double-stacked.
    b. Pallets holding MM or EMM trays of letter-size mail or 
bricklayed parcels may be triple-stacked if the combined gross weight 
of the stacked pallets is not more than 2,200 pounds. No other type of 
pallet may be triple-stacked. The heaviest pallet must be on the bottom 
and the lightest on the top; the pallets must be banded together with 
appropriate strapping material to maintain their integrity during 
transportation and handling; and the combined height of the stacked 
pallets must not be more than 77 inches.

[Redesignate current 4.0 as 5.0; add new 4.0 as follows:]
4.0  PALLET BOXES

4.1  Use

    Mailers may use pallet boxes constructed of single-, double-, or 
triple-wall corrugated fiberboard placed on pallets to hold sacks or 
parcels prepared under M042, M043, or M044. The box must protect the 
mail and maintain the integrity of the pallet load throughout 
transportation, handling, and processing.

4.2  Maximum Height

    The combined height of the pallet, pallet box, and mail must not be 
more than 84 inches. The USPS may restrict the use of pallet boxes more 
than 60 inches high at non-BMC postal facilities that do not have 
equipment for handling or unloading such containers.

4.3  Securing

    A pallet box must be secured to the pallet base with strapping, 
banding, stretchable plastic, shrinkwrap, or by any other means that 
ensures that the pallet can be safely unloaded from vehicles (and 
reloaded, if necessary) and processed as a single unit to the point 
where the contents are distributed. The mail must be evenly distributed 
within the pallet box so that the load remains intact and does not 
shift in transit causing the box to break, topple, or fall off the 
pallet in transit or during processing.

4.4  Nonconforming Mailers

    Nonconforming mailers (see 1.6) may use pallet boxes only if 
constructed of triple-wall corrugated fiberboard (C and/or B flute) 
material with a maximum height of 77 inches.

[Revise the heading of redesignated 5.0 as follows:]
5.0  PALLET PREPARATION
[Revise redesignated 5.1 as follows:]

5.1  Presort

    Pallet preparation and sortation is subject to the specific 
standards in M042 through M048. Pallet sortation is intended to presort 
the palletized portion of a mailing to at least the finest extent 
required for the rate claimed. Generally, pallet sortation is 
sequential from the lowest (finest) level to the highest and must be 
completed at each required level before the next optional or required 
level is prepared. As applicable, presort levels and standard 
preparation terms for pallets are defined in M020, M042, M043, M044, 
and M048.

[Revise redesignated 5.2 as follows:]

5.2  Minimum Load

    In a single mailing, the minimum load per pallet is 250 pounds (of 
second-, third-, and fourth-class packages, parcels, and sacks); or 
three layers of MM or EMM trays (of second- or third-class letter-size 
mail).

[Renumber redesignated 5.3 as 5.7; add new 5.3, 5.4, 5.5, and 5.6 as 
follows:]

5.3  Required Preparation

    Pallets are prepared as follows:
    a. A pallet must be prepared to a required level of sortation 
whenever there are 500 pounds of mail (for second-, third-, and fourth-
class packages, sacks, and parcels) or six layers of MM or EMM trays 
(for second- and third-class letter-size mail).
    b. Up to 10 percent of the total pallets in any mailing or job may 
be working pallets labeled to the BMC (third- or fourth-class mail) or 
SDC (second-class mail) serving the post office where mailings are 
entered (accepted) into the mailstream. The processing and distribution 
manager may issue a written authorization to the mailer to label 
working pallets to the post office or processing and distribution 
center serving the post office where mailings are entered. For non-PVDS 
mailings, the 10 percent limit may be exceeded when finer levels of 
pallets could not be prepared.

5.4  Maximum Weight

    The maximum weight is 2,200 pounds (mail and pallet) for all 
pallets.

5.5  Maximum Height

    The combined height of a single pallet and its load must not exceed 
the following:
    a. 84 inches for a fiberboard pallet box and its contents (sacks or 
parcels) on a pallet.
    b. 77 inches for packages, bundles, parcels, or sacks on pallets.
    c. 12 layers of MM or EMM trays.

5.6  Nonconforming Mailers

    For nonconforming mailers (see 1.6) the combined height of a pallet 
and its load must not exceed 77 inches for sacks, packages, bundles, 
parcels, and full-size fiberboard pallet boxes; or five layers of EMM 
trays; or six layers of MM trays.

5.7  Mixed Rates

    Regular rate and special rate mail may be placed on the same 
pallet, subject to the terms of the mailer's pallet authorization and 
the standards applicable to the rates claimed.

[Add new 6.0 as follows:]
6.0  ADDITIONAL STANDARDS FOR TRAYS (LETTER MAIL), PACKAGES, BUNDLES, 
AND SACKS ON PALLETS

6.1  Other Standards

    Trays of letter mail, packages, bundles, and sacks must be prepared 
under the respective standards for the class of mail and rate claimed.

6.2  Trays--Second- and Third-Class Mail

    Trays from automation rate mailings must not be placed on 5-digit 
pallets with trays from non-automation rate mailings.

6.3  Records--Second- and Third-Class Mail

    When two or more mailings are placed together on pallets, the 
mailer must maintain records for each mailing as required by standard.

6.4  Packages, Bundles, and Sacks

    Subject to the applicable standards, mailers must sack mail that is 
not prepared as packages or bundles on pallets. For second-class mail, 
mailers must separately sack packages of each second-class publication 
not palletized under M042 or excluded from palletization; however, 
packages of each publication and edition may be sacked together if 
adequate documentation is provided. Sacks (including sacks of packages 
not placed on pallets) containing packages remaining after all pallets 
are prepared may be presented with the palletized mail (on the same 
mailing statement) if segregated from the palletized portion of the 
mailing.

[[Page 39086]]


M042  Second-Class Mail

* * * * *
2.0  PACKAGES
[Amend 2.1 by adding a second sentence as follows:]

2.1  Standards

    Package presort and labeling must meet the applicable general 
standards in M020 and M030, except as noted below. The palletized 
portion of a mailing may not include packages sorted to foreign 
destinations.
* * * * *
[Delete current 2.5.]
3.0  OPTIONAL BUNDLES
[Amend 3.1 by adding a second sentence as follows:]

3.1  Standards

    Bundle presort and labeling must meet the applicable general 
standards in M020 and M030, except as noted below. The palletized 
portion of a mailing may not include bundles sorted to foreign 
destinations.
* * * * *
[Revise 3.3 as follows:]

3.3  Sortation

    Sortation is in the same sequence as sacks.
* * * * *
[Delete current 3.5.]

[Add new 4.0 as follows; delete current 6.0 and redesignate current 4.0 
and 5.0 as 5.0 and 6.0, respectively.]
4.0  PALLET PRESORT AND LABELING
    Presort sequence and labeling:
    a. 5-digit (required for packages, bundles, sacks, and machinable 
parcels; optional for trays); use destination of packages, etc., for 
Line 1.
    b. 3-digit (optional); use L002, Column A, for Line 1.
    c. SCF (required); use L002, Column B, for Line 1.
    d. ADC (optional); use L101 for Line 1.
    e. SDC (required); use L201 for Line 1.
    f. Working (optional), mixed SDC; use L201 for Line 1 based on ZIP 
Code of entry office (in ``Destination ZIP Codes'' column); (label to 
plant serving entry post office if authorized by processing and 
distribution manager).

[Revise the heading of redesignated 5.0 as follows:]
5.0  ADDITIONAL STANDARDS FOR PALLETS OF PACKAGES, BUNDLES, OR SACKS
[Delete redesignated 5.1, 5.3, and 5.5; renumber redesignated 5.2 and 
5.4 as 5.1 and 5.2, respectively.]
* * * * *
[Amend renumbered 5.2 by deleting ``optional city'' in the first 
sentence as follows:]

5.2  Delivery Office Rates

    When a 5-digit, 3-digit, or SCF pallet contains copies claimed at 
delivery office rates and copies claimed at other rates, the copies 
claimed at delivery office rates must be placed on the top of the 
pallet. These copies must be separated from the other copies. Any 
effective method (such as a slipsheet) may be used.

[Revise the heading of redesignated 6.0 as follows:]
6.0  PALLETS OF COPALLETIZED FLAT-SIZE PUBLICATIONS
[Delete redesignated 6.3, 6.4, and 6.6; renumber redesignated 6.5 and 
6.7 through 6.10 as 6.3 and 6.4 through 6.7, respectively.]
* * * * *
[Revise 6.2 as follows:]

6.2  Exclusion

    The palletized portion of a mailing may not include packages or 
bundles sorted to foreign destinations.
* * * * *

M043  Third-Class Mail

* * * * *
[Revise the heading of 2.0 as follows:]
2.0  PACKAGES
[Amend 2.1 by adding a second sentence as follows:]

2.1  Standards

    Package presort and labeling must meet the applicable general 
standards in M020 and M030, except as noted below. The palletized 
portion of a mailing may not include packages sorted to foreign 
destinations.
* * * * *
[Delete current 2.5.]
3.0  OPTIONAL BUNDLES
[Amend 3.1 by adding a second sentence as follows:]

3.1  Standards

    Bundle presort and labeling must meet the applicable general 
standards in M020 and M030, except as noted below. The palletized 
portion of a mailing may not include bundles sorted to foreign 
destinations.
* * * * *
[Revise 3.3 as follows:]

3.3  Sortation

    Sortation is the same sequence as sacks.
* * * * *
[Add new 4.0; delete current 9.0 and redesignate current 4.0 through 
8.0 as 5.0 through 9.0, respectively.]
4.0  PALLET PRESORT AND LABELING

4.1  Pallets of Packages, Bundles, Sacks, or Trays

    Presort sequence and labeling:
    a. 5-digit (required for packages, bundles, and sacks; optional for 
trays); use destination of packages, etc., for Line 1.
    b. 3-digit (optional); use L002, Column A, for Line 1.
    c. SCF (required); use L002, Column B, for Line 1.
    d. ADC (optional); use L101 for Line 1 (deposit pallet at BMC 
serving 3-digit ZIP Code on Line 1 if DBMC rate claimed).
    e. Destination BMC (required); use L705 (or L708 if DBMC rate 
claimed) for Line 1 and show any required processing code right-
justified on Line 2.
    f. Working (optional), mixed BMC; use L705 for Line 1 based on ZIP 
Code of entry office (in ``Destination ZIP Codes'' column) and show any 
required processing code right-justified on Line 2; (label to plant 
serving entry post office if authorized by processing and distribution 
manager).

4.2  Pallets of Machinable Parcels

    Presort sequence and labeling:
    a. 5-digit (required); use destination of parcels for Line 1.
    b. ASF (allowed and required only if DBMC rate is claimed for mail 
deposited at ASF); use L708 for Line 1.
    c. Destination BMC (required); use L705 for Line 1 (or L708 if DBMC 
rate claimed) and show any required processing code right-justified on 
Line 2.
    d. Mixed BMC (optional); use L705 for Line 1 based on ZIP Code of 
entry office (in ``destination ZIP Codes'' column) and show any 
required processing code right-justified on Line 2.

4.3  Line 2

    Line 2: 3C, processing category, and any processing code if 
required by 4.2.

[Revise the heading of redesignated 5.0 as follows:] 

[[Page 39087]]

5.0  ADDITIONAL STANDARDS FOR PALLETS OF PACKAGES OR BUNDLES
[Delete redesignated 5.1, 5.3, and 5.6; renumber redesignated 5.2, 5.4, 
and 5.5 as 5.1, 5.2, and 5.3, respectively.]
* * * * *
[Amend 5.2 by deleting ``optional city'' in the first sentence as 
follows:]

5.2  DDU Rates

    When a 5-digit, 3-digit, or SCF pallet contains pieces claimed at 
destination delivery unit (DDU) rates and pieces claimed at other 
rates, the pieces claimed at DDU rates must be placed on the top of the 
pallet. These pieces must be separated from the other pieces. Any 
effective method (such as a slipsheet) may be used.
* * * * *
[Revise the heading of redesignated 7.0 as follows:]
7.0  ADDITIONAL STANDARDS FOR PALLETS OF COPALLETIZED FLAT-SIZE 
MAILINGS
[Amend redesignated 7.1 by changing the references from ``4.2 through 
4.6'' to ``5.1 through 5.3.'']

7.1  Standards

    Copalletized flat-size mailings must meet the standards in 5.1 
through 5.3 and those below.
* * * * *
[Delete redesignated 7.3, 7.4, and 7.9 and renumber 7.5 through 7.12 as 
7.3 through 7.9, respectively.]
* * * * *
[Revise the heading of redesignated 8.0 as follows:]
8.0  ADDITIONAL STANDARDS FOR PALLETS OF MACHINABLE THIRD-CLASS PARCELS
[Delete redesignated 8.1, 8.2, 8.3, and 8.5; renumber 8.4 as 8.0. Amend 
8.0 by changing the references in the first sentence from ``7.2a 
through 7.2c'' to ``4.2a through 4.2c'' and in the second sentence from 
``7.2b and 7.2c'' to ``4.2b and 4.2c'' as follows:] Pieces may be 
eligible for the 3/5 presort rate if prepared under 4.2a through 4.2c. 
This eligibility includes pieces correctly presorted under 4.2b and 
4.2c to the service area of the origin ASF/BMC.
* * * * *
[Revise the heading of redesignated 9.0 as follows:]
9.0  ADDITIONAL STANDARDS FOR PALLETS OF THIRD- AND FOURTH-CLASS 
MACHINABLE PARCELS
[Delete redesignated 9.1, 9.2, 9.3, and 9.6; renumber 9.4 through 9.8 
as 9.1 through 9.4, respectively.]

[Amend 9.1 by changing the reference ``8.3'' to ``4.2'' as follows:]

9.1  Line 2

    Line 2: 3C/4C MACH and any processing code if required by 4.2.

[Amend 9.2 by changing the references in the first sentence from ``8.2a 
through 8.2c'' to ``4.2a through 4.2c'' and in the second sentence from 
``8.2b and 8.2c'' to ``4.2b and 4.2c'' as follows:]

9.2  3/5 Presort Rate

    Pieces may be eligible for the 3/5 presort rate if prepared under 
4.2a through 4.2c. This eligibility includes pieces correctly presorted 
under 4.2b and 4.2c to the service area of the origin ASF/BMC.
* * * * *

M044  Fourth-Class Mail

* * * * *
[Revise the heading of 2.0 as follows:]
2.0  PACKAGES
[Amend 2.1 by adding a second sentence as follows:]

2.1  Standards

    Package presort and labeling must meet the applicable general 
standards in M020 and M030, except as noted below. The palletized 
portion of a mailing may not include packages sorted to foreign 
destinations.
* * * * *
[Delete current 2.4.]

[Add new 3.0; delete current 5.0; redesignate current 3.0 and 4.0 as 
4.0 and 5.0, respectively.]
3.0  PALLET PRESORT AND LABELING

3.1  Pallets of Packages, Bundles, or Sacks

    Presort sequence and labeling:
    a. 5-digit (required); use destination of packages, etc., for Line 
1.
    b. 3-digit (optional); use L002, Column A, for Line 1.
    c. SCF (required); use L002, Column B, for Line 1.
    d. ADC (optional); use L101 for Line 1 (deposit pallet at BMC 
serving 3-digit ZIP Code on Line 1 if DBMC rate claimed).
    e. Destination BMC (optional); use L705 (or L708 if DBMC rate 
claimed) for Line 1 and show any required processing code right-
justified on Line 2.
    f. Working (optional), mixed BMC; use L705 for Line 1 based on ZIP 
Code of entry office (in ``Destination ZIP Codes'' column) and show any 
required processing code right-justified on Line 2; (label to plant 
serving entry post office if authorized by processing and distribution 
manager).

3.2  Pallets of Machinable Parcels

    Presort sequence and labeling:
    a. 5-digit (required); use destination of parcels for Line 1.
    b. ASF (allowed and required only if DBMC rate is claimed for mail 
deposited at ASF); use L708 for Line 1.
    c. Destination BMC (required); use L705 for Line 1 (or L708 if DBMC 
rate claimed) and show any required processing code right-justified on 
Line 2.
    d. Mixed BMC (optional); use L705 for Line 1 based on ZIP Code of 
entry office (in ``Destination ZIP Codes'' column) and show any 
required processing code right-justified on Line 2.

3.3  Pallets of Special Fourth-Class Presort

    a. 5-digit (Level A only; required); use destination of pieces or 
packages for Line 1.
    b. Destination BMC (Level B only; required); use L705 for Line 1 
and show any required processing code right-justified on Line 2.

3.4   Line 2

    Line 2: 4C, processing category, and any processing code if 
required by 3.1 through 3.3.

[Revise the heading of redesignated 4.0 as follows:]
4.0  ADDITIONAL STANDARDS FOR PALLETS OF PACKAGES
[Delete redesignated 4.1, 4.2, and 4.4; renumber 4.3 and 4.5 as 4.1 and 
4.2, respectively.]
* * * * *
[Revise the heading of redesignated 5.0 as follows:]
5.0  ADDITIONAL STANDARDS FOR PALLETS OF MACHINABLE PARCELS
[Delete redesignated 5.1, 5.2, and 5.3; renumber 5.4 through 5.6 as 5.1 
through 5.3, respectively.]
* * * * *

M048  Automation-Compatible Flats

* * * * *
2.0  PACKAGE AND PALLET PREPARATION
[Revise 2.1 as follows:]

2.1   Packages

    Packages to be presented on pallets must be prepared and presorted 
under the general standards in M020 and M030 and those applicable to 
the class and rate claimed.

[Revise 2.2 as follows:] 

[[Page 39088]]


2.2  Pallets

    Pallets must be prepared under the general standards in M041.
* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 95-18629 Filed 7-28-95; 8:45 am]
BILLING CODE 7710-12-P