[Federal Register Volume 61, Number 49 (Tuesday, March 12, 1996)]
[Rules and Regulations]
[Pages 10068-10217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5500]




[[Page 10067]]

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Part II





Postal Service





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39 CFR Part 111



Classification Reform; Implementation Standards; Final Rule

  Federal Register / Vol. 61, No. 49 / Tuesday, March 12, 1996 / Rules 
and Regulations  

[[Page 10068]]


POSTAL SERVICE

39 CFR Part 111


Classification Reform; Implementation Standards

AGENCY: Postal Service.

ACTION: Final rule; request for comments.

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

SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the Decision of 
the Governors of the Postal Service in Postal Rate Commission Docket 
No. MC95-1, Classification Reform I, and requests further comments on 
some aspects of those standards.

DATES: The final rule is effective on July 1, 1996. Comments as allowed 
herein must be received on or before March 27, 1996.

ADDRESSES: Mail or deliver written comments to the Manager, Customer 
Mail Preparation, USPS Headquarters, 475 L'Enfant Plaza SW, Washington, 
DC 20260-2405. 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 6830 at the above address.

FOR FURTHER INFORMATION CONTACT: Leo F. Raymond, (202) 268-5199, 
concerning the DMM standards, or Lynn Martin, (202) 268-6351, 
concerning the comments analysis.

SUPPLEMENTARY INFORMATION: On March 24, 1995, pursuant to its authority 
under 39 U.S.C. 3621, et seq., the Postal Service filed with the Postal 
Rate Commission (PRC) a request for a recommended decision on a number 
of mail classification reform proposals (Classification Reform). The 
PRC designated the filing as Docket No. MC95-1. The PRC published a 
notice of the filing, with a description of the Postal Service's 
proposals, on April 3, 1995, in the Federal Register (60 FR 16888-
16893).
    On June 29, 1995, the Postal Service published for public comment 
in the Federal Register an advance notice of proposed rulemaking (60 FR 
34056-34069). That notice included an overview of the Postal Service's 
proposals in MC95-1, the process that was used in developing them, and 
the process being used to prepare for implementation of Classification 
Reform and to begin development of the Domestic Mail Manual (DMM) 
implementing standards. The notice also contained detailed information 
about issues that had been identified for consideration in the 
implementation process, presented in a format that paralleled the 
Domestic Mail Classification Schedule (DMCS) changes proposed in the 
MC95-1 filing. Many of those implementation issues had been developed 
with the advice of the Classification Reform Implementation Advisory 
Groups (IAGs) convened by the Postal Service as part of the process 
described in the notice. The advance notice requested comments on the 
criteria under consideration for inclusion in proposed DMM implementing 
standards. Readers who are unfamiliar with the content of the Postal 
Service's MC95-1 filing or the implementation process should review the 
June 29 notice.
    On August 30, 1995, the Postal Service published for public comment 
in the Federal Register a second advance notice of proposed rulemaking 
(60 FR 45298-45323). The second notice reported a summary of the 
comments received in response to the first notice and invited further 
comment from interested parties on updated proposed implementing 
standards and on the implementation process generally. Readers were 
advised that, following review of comments received in response to the 
second notice, the Postal Service would revise its proposed 
implementation criteria as appropriate and would use those criteria as 
the basis for the DMM standards it would propose for adoption if the 
Classification Reform proposals requested by the Postal Service in PRC 
Docket No. MC95-1 were adopted.
    On December 22, 1995, the Postal Service published for public 
comment in the Federal Register a proposed rule (60 FR 66582-66703) 
that summarized and responded to comments received from the August 
notice; offered extensive details about contents of the proposed rule 
that were new or modified compared to the earlier notices and assessed 
their possible impact on the mailing community; offered simplified 
charts to illustrate proposed mail preparation standards; supplied an 
estimated list of 5-digit ZIP Codes affected by one of its proposals; 
and concluded with a complete listing of changes to the standards in 
the DMM that it proposed to adopt if the Classification Reform 
proposals requested by the Postal Service in PRC Docket No. MC95-1 were 
recommended by the PRC and approved by the Governors of the Postal 
Service.
    Pursuant to 39 U.S.C. 3624, on January 26, 1996, the PRC issued its 
Recommended Decision on the Postal Service's Request to the Governors 
of the Postal Service. The PRC recommendations made revisions to some 
of the mail classification structure and rates requested by the Postal 
Service. Based on an extensive analysis of the PRC's Recommended 
Decision and deliberation as to its consequences to the Postal Service 
and its customers, and pursuant to 39 U.S.C. 3625, the Governors acted 
on the PRC's recommendations on March 4, 1996. Decision of the 
Governors of the United States Postal Service on the Recommended 
Decision of the Postal Rate Commission on Classification Reform I, 
Docket No. MC95-1. With the exception of the PRC's separate courtesy 
envelope mail and bulk parcel post proposals, the Governors determined 
to approve the PRC's recommendations, and the Board of Governors set an 
implementation date of July 1, 1996, for those rate and classification 
changes to take effect. A notice announcing the Governors' Decision and 
the issuance of final Domestic Mail Classification Schedule and Rate 
Schedule changes is published elsewhere in this issue of the Federal 
Register.
    This final rule contains the DMM standards adopted by the Postal 
Service to implement the Governors' decision. Except as specifically 
noted below, the revised DMM standards will take effect on July 1, 
1996.
    In its testimony before the PRC, the Postal Service presented 
extensive evidence concerning the prudence and necessity of certain 
fundamental changes it was seeking to cause or facilitate in the 
mailstreams it processes. Most if not all of those changes were not 
founded in a particular rate or classification scheme, although the 
Postal Service considered that the incentives offered in its requested 
structure make it easier for customers to accept or benefit from those 
changes. Many components of the proposed rule reflected basic 
operational and network changes designed to improve the Postal 
Service's ability to encourage, manage, and benefit from automated 
mail, to improve mailflow, and to focus processing activities at a 
redesigned matrix of node facilities. As a result, despite the 
differences between the Postal Service's Request and the PRC's 
recommendation which the Governors have approved, the value and 
efficacy of those elements of the proposed rule related to mail 
quality, preparation, automation, and equipment and network utilization 
remain undiminished. As a result, the content of the proposed rule has 
been adopted as a final rule except as described below to correct 
factual or typographical errors, respond to comments received, or align 
with the rate and classification

[[Page 10069]]
structure recommended by the PRC and approved by the Governors.
    Because the PRC's Recommended Decision, as approved by the 
Governors, made significant changes to the mail classification 
structure requested by the Postal Service, adaptation of the proposed 
rule to the final structure has been necessitated in the final rule. 
Most of these changes are a direct consequence of the difference 
between the rate and classification changes proposed by the Postal 
Service and those recommended by the PRC and approved by the Governors. 
These were matters at issue in the PRC proceeding and, as such, are not 
subject to review or adjustment in this rulemaking. To the extent this 
final rule establishes further standards that were not previously 
published for public comment, the Postal Service has determined to seek 
and consider additional input from customers. This further opportunity 
for public comment is limited to matters that are newly introduced in 
the final rule, that do not result from the difference in recommended 
rate and classification provisions, and that are significant in their 
impact on customers compared with what was proposed in the proposed 
rule. The provisions for which comments are solicited are:
    1. New standards applied to Periodicals that are similar to those 
adopted in this final rule for First-Class and Standard Mail:
    a. All pieces in an automation rate mailing must be delivery point 
barcoded.
    b. Presort and other preparation standards, including a 150-piece 
minimum for preparing trays of automation rate letter-size mail.
    c. 5-digit ZIP Codes used in the addresses on nonautomation rate 
Periodicals must be verified annually for accuracy; mailers must 
certify this at the time of mailing..
    d. Letter-size reply envelopes and cards enclosed in automation 
rate pieces must meet specific standards for automation-compatibility; 
mailers must certify this at the time of mailing.
    2. Standards for documentation produced by Presort Accuracy 
Validation and Evaluation (PAVE) certified software and for 
standardized documentation produced otherwise. These standards are 
presented in P012, below; examples of documentation are also presented 
as part of this notice.
    After considering the potential impact of these provisions, the 
Postal Service has determined to allow 15 days for public comment. 
Although a longer comment period is usually provided, the Postal 
Service concluded that a 15-day comment period was warranted in this 
case for two reasons. First, the list of provisions on which comment is 
sought is limited and straightforward. Mailers should have little 
difficulty evaluating the impact of these provisions on their 
operations and preparing comments in a short time period. Second, the 
Postal Service wants to ensure that mailers have sufficient time after 
the close of the comment period and publication of any possible 
revisions to this final rule to make the necessary changes to their 
operations before the July 1, 1996 implementation date. After review of 
the comments received, the Postal Service will modify the corresponding 
standards if such modification is determined to be appropriate.
    Part A of this notice summarizes major changes that have been made 
to or added to the proposed implementation standards since the proposed 
rule. Part B provides an analysis of comments received on the proposed 
rule and the Postal Service responses. Part C shows examples of 
standardized documentation that would be generated under the standards 
shown below. Part D summarizes the changes to the DMM, followed by the 
text of the revised DMM standards.

A. Major Changes and Additions Since the December 22 Proposed Rule

    This section identifies additions and changes to the final DMM 
mailing standards that were not part of the proposed rules published on 
December 22.

1. Marking Standards

    Marking standards have been revised to allow mailers to continue to 
use ``Presorted First-Class'' and ``Bulk Rate'' markings as class of 
mail markings for presorted First-Class and Standard Mail. These 
markings must appear in the postage area on mailpieces. Additional 
mailing or rate specific markings are also required. This change will 
allow mailers to continue to use existing envelope stock, precanceled 
stamps, and meter slugs.

2. Postage Payment

    Revisions have been made to postage payment standards to allow 
mailers to affix metered postage to all the pieces in a mailing job at 
the lowest rate that applies to any presorted mailing contained in the 
mailing job.

3. Value Added Refund

    The proposal that would have required all pieces in a value added 
refund (VAR) mailing to have postage affixed at an automation rate has 
been removed. First-Class mailpieces bearing postage at Presorted 
First-Class rates will be acceptable for inclusion in automation First-
Class VAR mailings, and Standard Mail pieces bearing postage at 
presorted nonautomation Regular rates will be acceptable for inclusion 
in automation Standard Mail VAR mailings.

4. Minimum Quantity Per Mailing

    In accordance with the Domestic Mail Classification Schedule 
standards approved by the Governors, separate 500-piece minimum 
quantity per mailing standards have been established for mailings of 
cards in addition to those which apply to letters. Mailers may continue 
to combine comparably prepared letters and cards in the same mailings 
if the separate minimums are met and additional postage payment and 
documentation standards are met.

5. Postage Statements

    Mailing statements have been renamed postage statements to clarify 
the new standards that will allow all mailings submitted for 
verification as part of the same mailing job to be reported on a single 
postage statement.

6. Sleeving and Banding

    The proposed sleeving and banding standards for trayed letter mail 
have been modified. There will be no exceptions to sleeving. Exceptions 
to strapping of local mail have been extended to allow such exceptions 
for mail entered and delivered within the service area of the SCF 
serving the entry post office if approved by local management. The 
proposal had limited this exception only to mail entered and delivered 
within the service area of the facility where the mail was entered. The 
DMM palletization standards have been modified to make it clear that 
only trayed mail on stretchwrapped 5-digit, 3-digit, and SCF pallets 
are exempt from tray-strapping.

7. Packaging Material

    The proposal has been removed that required use of only rubber 
bands to prepare packages within automation letter mailings. Upon 
implementation of Classification Reform, mailers may continue to 
prepare these packages using either rubber bands, elastic strapping, 
plastic strapping or string. However, the Postal Service plans to 
require use of rubber bands or elastic strapping for automation 
mailings at a future date and will work with mailers on the timing of 
this standard.

[[Page 10070]]


8. Courtesy Reply Mail in Automation Mailings

    The standards have been revised concerning courtesy envelope and 
business reply mail enclosed in pieces mailed at First-Class or 
Standard Mail automation rates. The final rule also applies these 
standards to automation Regular Periodicals. The proposal indicated 
that the enclosed reply pieces must all bear a delivery point barcode, 
in addition to being automation-compatible and bearing a FIM. Under the 
final rule, the barcode standards have been revised to indicate that 
ZIP+4 barcodes are required for business reply mail and that courtesy 
reply mail must bear the correct delivery point barcode for the 
delivery address as defined by the Postal Service. Unique 5-digit and 
ZIP+4 barcodes provided by the Postal Service for use with courtesy 
reply mail will be considered valid delivery point barcodes for 
purposes of meeting this standard. In addition, the final rule requires 
that the enclosed reply mail pieces meet the barcode preparation 
standards in DMM C840. The standards concerning reply mail enclosed in 
First-Class, Standard Mail and Periodicals automation rate mailings are 
effective January 1, 1997. Comments are permitted on the extension of 
this requirement to Periodicals.

9. 3-Digit Schemes for Automation Letters

    Use of 3-digit scheme sort will be required for automation letters. 
This standard will allow mailers to obtain the finest discount level 
and the Postal Service to receive mail presorted to the finest extent 
possible.

10. Grouping of Pieces in AADC Trays

    Within mixed AADC trays in automation and upgradable letter 
mailings, the proposed standard to group pieces in those trays by both 
AADC, and within each AADC group, by 3-digit ZIP Code has been 
modified. Mail in these mixed AADC trays will be required to be grouped 
only by AADC area.

11. Specific Use of 1-Foot and 2-Foot Trays

    The traying standards for proper use of appropriate 1-foot and 2-
foot trays have been clarified to specify the type of tray that must be 
used when mailers have a quantity of mail for a tray sortation level 
that exceeds the physical capacity of a 1-foot tray, but is less than 
the minimum quantity for a full 2-foot tray. For automation and 
upgradable mailings of other than card-size pieces, the Postal Service 
would like the fewest number of packages (which are only prepared in 
less-than-full trays). For these mailings, when the mail remaining 
after filling all possible 2-foot trays exceeds the physical capacity 
of a 1-foot tray, but is less than the minimum quantity for a full 2-
foot tray, mailers must place this mail in two 1-foot trays (a full 1-
foot tray (without packaging) and a less-than-full 1-foot tray (with 
packaging)). For nonautomation mailings and for automation and 
upgradable mailings consisting entirely of card-size pieces, which are 
prepared in banded packages, the Postal Service would like to receive 
the fewest number of trays. Therefore for nonautomation mailings, when 
the mail remaining after filling all possible 2-foot trays exceeds the 
physical capacity of a 1-foot tray, but is less than the minimum 
quantity for a full 2-foot tray, mailers must place this mail in a 
single less-than-full 2-foot tray.

12. Less-Than-Full 3-Digit Trays

    Modification has been made to the proposed standard to tray all 
mail for the 3-digit ZIP Codes served by the SCF of the entry post 
office to at least the 3-digit level. These rules now apply only to the 
SCF that serves the post office where the mailing is verified.

13. Modification to ADC Lists

    The ADC list in proposed DMM L004 has been modified to provide for 
some class-specific differences in labeling. In addition, separate ADC 
and Mixed ADC labeling lists for Standard Mail irregular parcels have 
been added as DMM L603 and L604.

14. Mixed ADC and AADC Tray Destinations for First-Class Mail

    Mixed ADC and mixed AADC trays in First-Class mailings will be 
labeled to the SCF that serves the entry post office rather than to the 
3-digit ZIP Code of the entry post office.

15. Qualification of AADC and ADC Sort Levels for BMC Destination Entry 
Discounts

    Eligibility for destination BMC discounts for Standard Mail 
prepared in AADC trays and ADC trays, sacks, and packages on pallets 
has been clarified. The entire contents of these trays, sacks, or 
packages placed on pallets may receive a DBMC discount, provided that 
the ZIP Code in the top line of the tray or sack label, (or the ZIP 
Code assigned to the ADC in L004 for the package) is in the service 
area of the BMC at which the tray, sack, package on a pallet, is 
entered.

16. Revisions to Barcoded Tray Label Specifications

    The effective date for the standard to use barcoded tray and sack 
labels for mailings at automation First-Class, automation Standard, and 
automation Periodicals rates has been changed to January 1, 1997.

17. Revisions to Specifications for Mailer Prepared Tray and Sack 
Labels

    Adjustments and corrections have been made to the specifications in 
DMM M032 concerning mailer-prepared tray and sack labels, including 
barcoded labels. Mailers at all classes and rates are also reminded 
that effective July 1, 1996, tray, sack, and pallet labels used with 
their mailings must be revised to reflect the network changes, changes 
to the names of the classes of mail, and other labeling changes that 
will go into effect with these final DMM rules.

18. Enhanced Carrier Route Rates

    Separate letter and nonletter rates have been established by the 
Governors for the Standard Enhanced Carrier Route subclass. In 
addition, the automation carrier route rate proposed under a separate 
automation subclass has been recommended by the PRC and approved by the 
Governors as an automation Enhanced Carrier Route rate. Accordingly, 
automation Enhanced Carrier Route mailings must meet a separate minimum 
quantity requirement from mail at automation Regular Standard rates, 
and will be subject to the minimum per piece weight breakpoint for the 
Enhanced Carrier Route subclass.

19. Palletization of Mail Meeting Both Letter-Size and Automation Flat-
Size Standards

    In the proposed rule, the Postal Service proposed an exception that 
would allow certain letter-size mail to be prepared as packages on 
pallets. Under this exception, mailers of pieces that meet both the 
letter and automation flats dimensions, and who mail a portion of their 
mailing job at the automation flats rates, would be permitted to 
prepare the entire mailing job (i.e., Enhanced Carrier Route, 
automation Regular, and nonautomation Regular mailings) as packages on 
pallets, provided the nonautomation Regular portion was 10% or less of 
the total pieces mailed at the Enhanced Carrier Route and automation 
Regular rates, and flat rates (non-letter rates) were paid on all 
pieces. The final rule will provide for this exception, but only until 
January 1, 1997. Beginning January 1, 1997, the Enhanced Carrier Route 
and nonautomation Regular portions of

[[Page 10071]]
mailing jobs of pieces that meet the definition of letter-size mail 
will be required to be trayed. Preparation of trays on pallets is 
preferred. This is consistent with the Postal Service's need to have 
all letter mail prepared in trays, and is discussed further in the 
section discussing comments.

20. Periodicals

    The proposed Publications Service subclass of Periodicals was not 
recommended to the Governors by the Postal Rate Commission. Instead 
revised rates for Regular Periodicals were recommended. These changes 
to Periodicals have been accepted by the Governors. As a consequence, 
the Postal Service has determined to modify the mail preparation and 
quality standards for entry at the Regular Periodicals rates. The 
standards set forth in this notice are final rules. Because many of 
these standards were not applied to all Periodicals mailers in the 
proposed rule, the Postal Service will permit comments on these 
standards.
    Unlike the proposed rule, there are no rates and corresponding 
preparation standards for automation carrier route mail; only mail 
sorted to 5-digit and unique 3-digit ZIP Code packages, trays, and 
sacks may qualify for applicable 3/5 rates; and zone rates apply only 
to advertising pounds. Like the proposed rule, optional city will no 
longer be a sortation level, and SDC, State, and Mixed States sortation 
levels have been replaced with the appropriate ADC and mixed ADC or 
AADC and mixed AADC sortation levels.
a. Regular Periodicals Automation Rate Mailings
    (1) Letter-Size Pieces. Mailings must be presorted under standards 
similar to automation First-Class and Standard mailings. There is no 
automation carrier route mail preparation or rate. Mailers must sort 
mail to required 5-digit, required unique 3-digit, required 3-digit/
scheme, and required AADC trays, using a 150-piece minimum at each tray 
level. Remaining mail is trayed to mixed AADC trays. Only mail in 5-
digit and unique 3-digit trays is eligible for 3/5 automation Regular 
Periodicals per-piece rates. Mail in 3-digit/scheme, AADC, and mixed 
AADC trays qualifies for basic automation per-piece rates. Both 1-foot 
and 2-foot tray sizes must be used as appropriate.
    Mailings must be 100% delivery point barcoded. Addresses must be 
matched semi-annually using CASS-certified software and a current AIS 
database. Barcoded tray labels will be required effective January 1, 
1997. Use of PAVE-certified software or standardized documentation will 
be required effective January 1, 1997. Enclosed courtesy and business 
reply mail envelopes will be required to be automation-compatible and 
prepared with barcodes and FIM marks effective January 1, 1997.
    (2) Flat-Size Pieces. Firm and carrier route packages cannot be 
part of an Automation flats mailing. Mailers must prepare packages of 6 
or more pieces to 5-digit, 3-digit, ADC and mixed ADC destinations and 
place them in 5-digit, 3-digit, ADC and mixed ADC sacks or on the 
appropriate level of pallet. Only pieces in 5-digit and unique 3-digit 
sacks (or in 5-digit and unique 3-digit packages placed on pallets), 
are eligible for the 3/5 automation Regular Periodicals per-piece 
rates. Pieces in non-unique 3-digit, ADC and mixed ADC sacks (and non-
unique 3-digit, ADC and mixed ADC packages placed on pallets) will 
qualify for basic Automation per-piece rates. Mailings must be 100% 
ZIP+4 or delivery point barcoded. Addresses must be matched semi-
annually using CASS-certified software and a current AIS database. 
Barcoded sack labels will be required effective January 1, 1997. Use of 
PAVE-certified software or standardized documentation will be required 
effective January 1, 1997. Enclosed courtesy and business reply mail 
envelopes will be required to be automation-compatible and prepared 
with barcodes and FIM marks effective January 1, 1997.
b. Nonautomation Mailings
    (1) Letters. Mail must be prepared in trays. Both 1-foot and 2-foot 
trays must be used as appropriate. Firm packages are permitted and 
receive rates based on current criteria. Six-piece or larger carrier 
route packages must be placed in carrier route trays when there are at 
least 24 pieces for the tray, but trays with as few as one 6-piece 
package are acceptable. Remaining carrier route packages are placed in 
5-digit carrier routes trays. Six-piece or larger 5-digit, 3-digit, 
ADC, and mixed ADC packages are prepared and must be placed in 5-digit, 
3-digit, and ADC trays whenever there are at least 24 pieces for one of 
those tray destinations. Trays with as few as one 6-piece or larger 
package may be prepared. Remaining packages are placed in mixed ADC 
trays. Only mail in 5-digit or unique 3-digit trays qualifies for 3/5 
nonautomation Regular Periodicals per-piece rates. Mail in non-unique 
3-digit, ADC and mixed ADC trays qualifies for basic per-piece rates. 
The carrier route portion must be matched using CASS-Certified software 
to a current CRIS file or other AIS product containing carrier route 
codes, within 90 days prior to the date of mailing. No sequencing is 
required for basic carrier route rates. High Density and Saturation 
rate mail must be prepared in carrier walk sequence using a current 
USPS DSF or CDS file or other USPS sequencing service within 90 days 
prior to the date of mailing. Effective October 1, 1996, 5-digit ZIP 
Codes in each address in the non-carrier route portion of the mailing 
must have been verified and corrected within 12-months prior to the 
date of mailing by a USPS approved method.
    (2) Nonautomation Flats. Mail is sorted according to current DMM 
issue 49 standards except that there must now be a minimum of one 6-
piece package in each sack other than a mixed ADC sack; the optional 
city package and sack level has been eliminated; and SDC, state, and 
mixed states packages and sacks have been replaced with ADC and mixed 
ADC packages and sacks. Only mail in 5-digit or unique 3-digit sacks 
(or in 5-digit or unique 3-digit packages on pallets) qualifies for 3/5 
nonautomation Regular Periodicals per-piece rates. Mail in non-unique 
3-digit, ADC, and mixed ADC packages and sacks qualifies for basic per-
piece rates. The carrier route portion must be matched using CASS-
Certified software to a current CRIS file or other AIS product 
containing carrier route codes, within 90 days prior to the date of 
mailing. No sequencing is required for basic carrier route rates. High 
Density and Saturation rate mail must be prepared in carrier walk 
sequence using a current USPS DSF or CDS file or other USPS sequencing 
service within 90 days prior to the date of mailing. Effective October 
1, 1996, 5-digit ZIP Codes in each address in the non-carrier route 
portion of the mailing must have been verified and corrected within 12-
months prior to the date of mailing by a USPS approved method.

21. Submission of Form 3553

    A standard to submit a Form 3553, CASS Report, with automation 
carrier route First-Class, automation and nonautomation Enhanced 
Carrier Route Standard, and carrier route Regular Periodicals has been 
added to the final DMM standards. Submission of this report with each 
mailing will document that the addresses in these mailings were matched 
to a current database using CASS certified software within 90 days 
prior to the date of mailing. Mailings at carrier route Nonprofit 
Standard and carrier route Preferred Periodicals rates will not be 
required to be accompanied by a Form 3553 because the standard for use 
of CASS

[[Page 10072]]
certified address matching software will not apply to mailings at these 
rates (although the standard to update their carrier route information 
within 90 days prior to the date of mailing using a current database 
will apply). Comments will be accepted on the application of these 
rules to Regular Periodicals.

B. Summary of Comments From the December 22 Proposed Rule

    The Postal Service received 64 pieces of correspondence offering 
comments on the December 22 proposed rule. Respondents included major 
mailer associations, individual publishers, printers, presort bureaus, 
and mailers.
    The specific points raised in the comments are presented below, 
organized by general comments and then by letters, flats, Periodicals 
and addressing.

1. General Comments

a. Change in Name of Third-Class and Fourth-Class Mail to Standard Mail
    Three comments were received regarding the change in name of third- 
and fourth-class mail to Standard Mail.
    The Postal Service proposed, as part of Classification Reform, that 
mail matter currently designated as third-class and fourth-class be 
combined into a new single Standard Mail class. This change was not 
opposed in the Postal Rate Commission (PRC) proceeding and has been 
recommended by the PRC and approved by the Governors.
    The Postal Service will be publishing information on the name 
change in the Postal Bulletin and has other planned communication 
events and publications to raise the awareness level of all mailers and 
the general public of this change and the other changes needed to 
implement Classification Reform.
b. Format of Final Mailing Standards for Classification Reform
    One commenter requested that entire DMM pages be published in the 
Postal Bulletin that transmits the mail preparation rules in this 
Federal Register notice and requested that any new wording be placed in 
bold.
    Due to limits on time, space, cost, and size of the document, the 
DMM standards published in the Postal Bulletin will follow the same 
format as this final rule and will contain only the sections that are 
changed. DMM issue 50, which will incorporate the new preparation 
standards will be distributed prior to implementation.
c. Comments Beyond the Scope of this Rulemaking Process
    Ten commenters submitted comments requesting such things as a 
change in the rates, rate structure, minimum quantity standards for a 
rate category, or stated concerns about the structure of the future 
Classification Reform proposals for nonprofit mail, or suggested an 
implementation date for Classification Reform. One commenter requested 
that the Postal Service provide mailers its delivery performance data.
    These comments are beyond the scope of this rulemaking. The rates, 
rate structure, and basic standards for rates in MC-95-1 were subject 
to litigation before the Postal Rate Commission, and cannot be 
unilaterally revised by the Postal Service in a rulemaking process. 
Similarly, the date for implementation of MC95-1 is determined by the 
Board of Governors of the Postal Service and is outside the scope of 
this rulemaking. Comments concerning the structure of the future 
Classification Reform proposal for Nonprofit Mail have been noted, but 
are also outside the scope of this rulemaking process.
d. General Comments on Mail Preparation Standards in the Proposed Rule
    Eight general comments were received regarding the preparation 
standards set forth in the proposed rule. One commenter was pleased to 
see the Federal Register notice published on the Postal Service 
electronic bulletin board (RIBBS). One indicated he found no problems 
or inequities with the proposed rule. The remaining six disagreed with 
the overall effect of the preparation rules.
    One of these indicated that the Postal Service is adding ``picky 
details`` to make the preparation standards complex. One indicated that 
some of the implementation standards may be exclusionary and create 
unnecessary barriers thereby creating growth of coarsely sorted and 
non-automated mail, exactly the opposite of the intended outcome of 
Classification Reform. Another commenter indicated that the preparation 
rules will negatively impact mailer cost and service. This commenter 
argued the proposed rules would keep more mailers out of automation 
thereby eliminating their reason to improve address quality, and 
leaving the USPS with more difficult-to-process mail. This commenter 
suggested that the Postal Service delay implementing unduly restrictive 
rules.
    Three commenters indicated a combination of several of the make-up 
standards for mail will increase preparation costs, listing such things 
as 1) the separate mailstreams for barcoded and non-barcoded mail; 2) 
the need to have 150 pieces to a 5-digit or 3-digit destination to 
obtain 5-digit and 3-digit automation rates; 3) the requirement to use 
barcoded tray labels on automation mailings; 4) the requirement for the 
mailer to strap all trays of letter mail; 5) the standard to prepare 
each subclass as a separate mailstream with separate subclass markings; 
6) the required use of both 1-foot and 2-foot trays in letter-size 
mailings; 7) the standards to tray letter mail prior to palletizing it; 
8) the decrease in drop shipment discounts when trucking costs may 
increase due to increased cost of preparing pallets and loss of cube 
space in trailers; and 9) the standards for purchasing and printing new 
reply mail pieces that bear barcodes and FIM marks for inclusion within 
pieces at automation rates.
    One commenter remarked that it did not appear the Postal Service 
gave serious consideration to mailer comments concerning these issues 
in the last Federal Register and requested that it give such attention 
in this rulemaking.
    Some of the items stated as concerns by these commenters involve 
issues that were at issue in the PRC proceeding, such as drop shipment 
discounts, and minimum quantity standards for mailings. The Postal 
Service cannot use rulemaking to change rates, discounts, and DMCS 
provisions that were recommended by the PRC and approved by the 
Governors. The Postal Service recognizes that under Classification 
Reform many mailers will be affected by new preparation criteria; 
however, the Postal Service believes that these preparation criteria 
are necessary to achieve the goal of encouraging mail that is efficient 
for the Postal Service to handle.
e. Minimum Quantity Standards/Definition of a Mailing
    Ten comments were received concerning the application of minimum 
quantity standards to mailings and the definition of a mailing. These 
commenters had concerns about the proposed standard that each separate 
subclass and, within each subclass, each separate mail processing 
category, meet the appropriate 500-piece (First-Class) or 200-piece 
(Standard Mail) minimum quantity standard.
    Five commenters indicated the minimum quantity should apply to the 
combined subclasses in the physical mailing and not to each individual 
subclass. Six commenters similarly requested that mailers should be 
able to combine mailings of different subclasses and rate categories 
that are part of the same mailing job. Four commenters stated that 
applying the minimum to

[[Page 10073]]
each subclass could cause problems for qualifying non-barcoded mail 
because when using lists that have a high percentage of names that can 
be properly barcoded, there may not be enough pieces left over after 
preparing the Automation mailing to meet a separate minimum quantity 
standard for mailing at Retail (now Presorted First-Class) or Regular 
(now Nonautomation Standard) rates. Another commenter expressed concern 
that mail remaining that cannot meet a separate minimum quantity 
standard will end up in the single-piece rate category, and that 
single-piece rate mail is generally not accepted at business mail entry 
units. One commenter also indicated that proposed DMM M130.1.1b, which 
stated that a mailing can consist of only one processing category, and 
M130.1.1d, which required that a separate rate marking appear on Retail 
Mail (now named Presorted First-Class), do not permit mailers to 
prepare the residual to an Automation mailing as a Retail (Presorted 
First-Class) mailing. One commenter expressed concern that splitting a 
Standard mailing job into three separate mailstreams complicates the 
mailing process and that this conflicts with a stated purpose of 
Classification Reform to simplify the preparation of mailings.
    The Domestic Mail Classification Schedule approved by the Governors 
specifies separate 500-piece minimum quantity standards for the 
following First-Class mailings: (1) Letters and Sealed Parcels 
Automation, (2) Cards Automation, (3) Letters and Sealed Parcels 
Presorted, and (4) Cards Presorted. Accordingly, the final implementing 
DMM standards in this notice contain these separate minimum quantity 
standards for Automation mailings and for Presorted First-Class 
Mailings, including the separate minimums for mailings of First-Class 
Cards. First-Class mailers will be permitted to combine letters and 
cards in the same mailing as they do currently, provided each separate 
subclass (cards and letters) meets its own separate 500 piece minimum 
quantity standard and mailers either affix exact postage to each piece 
in the mailing or can provide standardized documentation to reflect the 
number of pieces in each subclass and each rate category within the 
combined mailing. The current provisions that all pieces in a mailing 
must be of the same processing category (with certain exceptions 
allowing for commingling Standard Machinable and Irregular parcels) are 
also retained in the final implementing DMM standards.
    The DMCS also prescribes separate minimum quantity standards of 200 
pieces or 50 pounds each mailing of Standard Regular and Enhanced 
Carrier Route rate mail. Due to operational differences in the way that 
mail is handled, automation mail must be sorted and presented 
separately from presorted nonautomation mail. The Postal Service has 
determined that automation and nonautomation mail must therefore be 
prepared and presented as separate mailings. Accordingly, the final 
implementing DMM standards in this notice contain separate minimum 
quantity standards for the following Standard mailings: (1) automation 
Enhanced Carrier Route, (2) nonautomation Enhanced Carrier Route, (3) 
automation Regular, and (4) presorted nonautomation Regular.
    If, after preparing one or more of the above mailings within a 
class, mailers are left with a quantity of pieces that do not meet the 
minimum quantity standards for a Presorted First-Class or presorted 
nonautomation Regular mailing, mailers are correct that such pieces 
must be mailed at single-piece rates. These single-piece rate pieces 
will be accepted through the Business Mail Entry Unit when presented 
along with other presort rate mailings. Additional information on 
markings and postage payment for these pieces is provided in the 
separate comment sections on those two topics.
    Eight commenters indicated that mailings of all subclasses should 
be able to be reported on the same mailing statement, and on the same 
documentation. Four commenters requested clarification concerning the 
application of minimum quantity standards to plant verified drop 
shipment (PVDS) mailings expressing opinions that Customer Support 
ruling PS-283 be continued under Classification Reform. Three 
commenters pointed out that there is a conflict in the proposed rule 
between the information presented in the general comments section which 
states separate subclasses cannot be part of the same mailing, and the 
information in DMM 600.2.4 which states that all the Standard Mail 
subclasses can be prepared in the same mailing, and that this is 
further confused by rules and comments indicating that mailings of 
different subclasses can be combined on the same pallets in palletized 
mailings. These commenters stated that the proposed policy was 
confusing and inconsistently applied throughout the proposed standards. 
One of these commenters indicated that he interpreted the proposed 
standards to mean that Standard Automation and Regular (now 
nonautomation Regular) mail may be on the same pallet and can be 
reported on the same documentation and mailing statement. One commenter 
stated that his support for 100% barcoding during the Implementation 
Advisory Group (IAG) meetings was conditional on having Enhanced 
Carrier Route, Automation, and Regular subclass mail to be part of the 
same mailing and reported on the same mailing statement. This commenter 
believed that previous responses to comments led him to believe the 
Postal Service agreed with this single mailing concept.
    The information in proposed DMM 600.2.4, which stated that all the 
Standard mail subclasses could be prepared in the same mailing 
contained a typographical error omitting the word ``not.'' The Postal 
Service regrets any confusion this may have caused. Under 
Classification Reform, a mailing will consist of a group of mail of the 
same class and subclass which will be processed in the same manner by 
the Postal Service, and which is submitted for verification at the same 
time. Each mailing will be required to meet a separate minimum quantity 
standard. As indicated above, for presorted Regular Standard Mail 
mailers, automation mail must be prepared as a separate mailing from 
mail entered at presorted nonautomation rates, and automation Enhanced 
Carrier Route mail must be submitted as a separate mailing from mail 
entered at nonautomation Enhanced Carrier Route rates and from other 
Regular Standard mailings. Each of these four mailings must therefore 
meet a separate 200-piece or 50-pound minimum quantity standard. 
Similarly, a First-Class Automation letter mailing must meet a separate 
500-piece minimum quantity standard and a Presorted First-Class letter 
mailing must meet a separate 500-piece minimum quantity standard. 
Separate minimum quantity standards must also be met for mailings of 
automation First-Class Cards and Presorted First-Class Cards.
    The final implementing DMM standards contained in this notice 
provide that separate mailings of the same class of mail and in the 
same mailing job that are presented for verification at the same time 
may be claimed on a single postage statement. The Postal Service has 
renamed its ``mailing statements'' as ``postage statements'' to avoid 
confusion as to whether more than one mailing can be reported on a 
single statement. Under the standardized documentation standards for 
these mailings, separate documents describing each mailing will

[[Page 10074]]
be required except for copalletized, commingled, or combined mailings 
submitted on pallets. For these palletized mailings, packages or sacks 
or trays from each of the separate mailings are sorted together for 
placement on the appropriate level of pallets. Therefore, standardized 
documentation for palletized mailings will report pieces contained in 
each separate mailing by each separate rate category on a pallet by 
pallet basis, with a summary roll up of the total pieces for each 
separate mailing and each rate for the entire mailing job. Each of the 
mailings on the pallets that are part of the same mailing job may be 
reported on a single postage statement. The DMM standards in this 
notice have been revised to make these standards clear.
    Customer Support Ruling PS-283, Third-Class Destination Entry 
Discounts and Fourth-Class Bulk Bound Printed Matter for PVDS, that 
pertains to application of minimum quantity standards for plant 
verified drop shipment (PVDS) mailings will continue to apply to the 
corresponding Standard mailings under Classification Reform.
f. Marking Standards
    Eighteen comments were received in response to the proposed marking 
standards for First-Class and Standard Mail. Five commenters expressed 
outright opposition to the additional required markings. Three 
commenters suggested the Postal Service consider a transition period to 
allow time for mailer system and mailpiece design changes to 
accommodate the proposed marking standards. One of these commenters 
requested a one-year transition period to allow his company to deplete 
their envelope stock bearing current markings. One commenter asked 
whether the Postal Service would produce precanceled stamps bearing the 
proposed markings and asked whether it would accept stamps with current 
markings. One of these commenters questioned the need for the markings 
since they have no impact on improving deliverability of mailpieces.
    One commenter indicated that 5 to 7 address lines would be needed 
for the markings plus a barcode, and that this means their address 
windows will have to be enlarged to accommodate the extra address 
lines. Another commenter similarly indicated he would have space 
problems with their addresses if an optional endorsement line had to be 
added. Two commenters indicated they had cleaned their address blocks 
to appear more personalized and had eliminated all but the carrier 
route endorsement line and the Address Correction Service information 
line. These commenters were concerned the proposed markings would 
detract from the appearance of their mailings and thereby reduce the 
response rate to these pieces.
    Several commenters pointed out problems that separate markings for 
separate mailings would pose for their operations. Four MLOCR users 
indicated that they cannot mark the mail before processing it, and that 
the ability to apply the marking with an ink jet is not currently 
available. They also stated that since their mailings consist of 
various size pieces it would be hard to spray on a marking in a 
consistent place. They further indicated that they could not apply 
markings representing individual presort rates. One of these mailers 
stated that in a letter sorter environment postage is applied to the 
pieces prior to sorting them, and therefore correct markings could be 
applied only if an optional endorsement line was used (requiring an 
enormous amount of programming time) or if some mail was run through 
the postage meter process a second time. Five commenters stated that 
because their Retail Mail (renamed Presorted First-Class) will come 
from Automation mail that was not delivery point barcoded, a standard 
to separately mark this mail as Retail Mail (now Presorted First-Class) 
would be a problem in itself and would also lead to postage payment 
problems. One of these commenters stated the same marking and postage 
problems will be encountered if some of the uncoded mail must be 
entered at the First-Class single-piece rates.
    One commenter requested use of a generic ``Presort'' marking for 
all mailings. Two commenters requested that Retail Mail be allowed to 
bear an Automation marking, and two commenters suggested Automation 
mail be permitted to use the Retail marking. Two commenters indicated 
there would be no efficient way to delete old markings and add new 
markings to mailpieces. Another commenter indicated that the proposed 
endorsements would cause a problem in his mailing operations in which 
separately sorted mailings that each bear preprinted markings on an 
insert appearing through a window are merged together using barcode 
sorters to boost presort qualification levels. The merged final mailing 
would therefore not be able to show an individual rate qualification 
level marking. One commenter stated that one of the exhibits in the 
proposed rule appeared to require destination entry level in the 
markings and requested that the Postal Service eliminate this standard.
    One commenter indicated that the standards are unclear and 
requested clarification as to whether each subclass would have to bear 
a separate marking. This commenter requested further information as to 
which markings can appear in the indicia. Another commenter pointed out 
that the proposed language in DMM P040, Exhibit 4.1b, stated that the 
``Bulk Rate'' marking in permit imprints should be replaced with a 
``Presort'' marking, yet the standards in proposed DMM M810.1.1 stated 
that Standard Mail must be marked Standard or STD. This commenter 
stated that based on proposed DMM M810.1.1 he would have expected the 
permit imprint to have contained the marking ``Standard'' rather than 
:``Presort.'' One commenter was confused as to where the proposed 
subclass markings could be placed and suggested this standard could be 
a problem unless they were allowed in the address block. One commenter 
stated that the rules for optional endorsement lines and key lines need 
to be standardized since the information in each of these appears to be 
similar but is not consistent in content and format. One commenter 
asked whether the markings in DMM P700 would be required for everyone 
or just for customers who use manifest mailing systems.
    One commenter wanted to know why nonprofit mailers and Periodicals 
Mail did not need to meet the new marking standards.
    One commenter didn't understand the need for the markings 
indicating that it will provide no additional information to the Postal 
Service. One commenter stated that the marking standards are the result 
of shortcomings in the Postal Service In-Office Cost System (IOCS). 
This commenter further stated that the Postal Service should invest in 
technology to correct these shortcomings, and not require mailers to 
invest in technology to fix them. One commenter indicated that the 
Postal Service should use mailers' acceptance documents to gather 
needed information and expressed a belief that these forms are not 
analyzed and documented now. This commenter further questioned whether 
the information this proposal requested would be used any more 
effectively.
    Markings are used to develop detailed cost information about 
various categories of mail. The Postal Service In-Office Cost System 
(IOCS) determines the costs attributable to each subclass and certain 
rate categories. These attributable costs are used in determining 
rates. The IOCS uses a sampling system. A data collector will

[[Page 10075]]
go to a randomly selected postal employee at a randomly selected time 
and record the subclass, and where applicable, the rate category 
information appearing on any mail that postal employee is handling at 
the time of observation. The data collector will use the markings that 
appear on individual mail pieces, as well as postage, piece size, and 
other information to determine the subclass and any applicable rate 
category of the mail being handled at the time of observation.
    Accurate cost attribution depends on accurate piece markings. It is 
therefore in the best interest of both mailers and the Postal Service 
to have accurate costing information for subclasses and mailing and 
rate categories within subclasses for ratemaking purposes. 
Classification Reform offers an opportunity to implement markings that 
will enable the Postal Service to more accurately determine the costs 
of automation (barcoded) mailings and other mailings. Accordingly, the 
Postal Service has determined that the markings applied to First-Class 
and Standard mailpieces must accurately reflect the subclass and 
mailing category at which the pieces are actually mailed. For mail at 
any carrier route rates, a marking specifying the actual rate category 
within a mailing will also be required.
    The Postal Service is also sensitive to the concerns of the mailers 
who commented. It recognizes that in some instances the marking 
standards contained in this notice may require mailers to make changes 
to their current mailing practices. In response to these concerns, the 
Postal Service has made modifications to the final marking standards to 
make them easier for mailers to comply with. The final standards are 
described below.
    In response to comments concerning needed phase-in time to use 
current stocks of envelopes bearing ``Presorted First-Class'' and 
``Bulk Rate'' markings, and concerns over use of precanceled stamps 
that currently bear these printed markings, the Postal Service has 
decided to retain use of ``Presorted First-Class'' rather than adopt 
the proposed ``Presort First-Class'' for First-Class Mail; and to 
retain use of ``Bulk Rate'' or ``Blk. Rt.'' as the marking for Standard 
Mail (A) rather than the proposed ``Standard'' marking plus another 
specific mailing marking. Use of these current class specific markings 
will still allow the Postal Service to collect accurate data without 
adding the extra cost to mailers of buying new envelopes, or replacing 
meter slugs, or remarking mail bearing precanceled stamps with what 
would have been obsolete markings. This retention of current markings 
will also eliminate the confusion that would have occurred during any 
transition period that would have allowed mail bearing the old markings 
concurrent with mail bearing new markings. Accordingly, the Postal 
Service does not plan to phase-in the marking standards.
    For all First-Class and Standard Mail (A) presort rate mailings, 
both a class marking and a mailing marking will be required on each 
piece. For carrier route rates a class marking, mailing marking, and a 
specific carrier route rate marking will be required.
    For presorted First-Class mailings (both Automation and Presorted 
First-Class), the class marking of either ``First-Class'' or 
``Presorted First-Class'' must appear in the postage area. For 
presorted Standard (A) mailings (Automation, Enhanced Carrier Route, 
and Nonautomation), the class marking ``Bulk Rate'' or ``Blk. Rt.'' 
must appear in the postage area. The postage area is defined as the 
area within the permit imprint or precanceled stamp, or below or to the 
left of the meter stamp, permit imprint or precanceled stamp.
    For automation First-Class, automation Regular Standard, and 
automation Enhanced Carrier Route Standard mailings, the marking 
``AUTO'' in all capital letters will be required on all pieces in 
addition to the applicable class marking described above. In addition, 
mail qualifying for a presort First-Class or Enhanced Carrier Route 
Standard automation carrier route letter rate, must bear an additional 
CR rate marking so that the marking will appear as ``AUTOCR'' on each 
piece qualifying for those rates. The ``AUTOCR'' marking is in addition 
to the applicable class marking described above. The ``AUTOCR'' marking 
may appear only on pieces qualifying for an automation carrier route 
rate and the ``AUTO'' marking may appear only on pieces qualifying for 
a non-carrier route automation rate. The automation marking (``AUTO'' 
or ``AUTOCR'') may appear in the postage area or on the top line of the 
address (only a barcode may appear above it). Alternatively, for MLOCR 
users, the appropriate ``AUTO'' or ``AUTOCR'' marking may appear to the 
left of a barcode in the lower right corner of the envelope, or to the 
left of a date applied by the MLOCR in the postage payment area.
    For nonautomation Presorted First-Class mailings the marking 
``Presorted First-Class'' will be required in the postage area. This 
serves as the marking for both the class of mail and type of mailing. 
As indicated above, mail entered at the Presorted First-Class rates 
will not be permitted to also bear an ``AUTO'' or ``AUTOCR'' marking. 
Mail entered at single-piece First-Class rates must bear only the 
``First-Class'' marking, no marking, or under certain conditions, the 
``Presorted First-Class'' marking. Single-piece rate mail may bear the 
``Presorted First-Class'' marking only if additional postage is affixed 
to each piece to bring the total postage affixed to each piece up to 
the correct single-piece rate (based on the weight of the piece). For 
mailers using precanceled stamps or permit imprints, the additional 
postage affixed to single-piece rate mail could be in the form of 
either stamps or a meter imprint. The addition of postage to single-
piece rate mail marked ``Presorted First-Class'' will allow IOCS data 
collectors to determine that the piece was mailed at a single-piece 
First-Class rate.
    For presorted nonautomation Regular Standard mailings, the ``Bulk 
Rate'' or ``Blk. Rt.'' marking will be required in the postage area. 
This serves as the marking for both the class of mail and type of 
mailing. For nonautomation Enhanced Carrier Route Standard Mail, each 
piece must bear the marking ``ECRLOT'', ``ECRWSH'', or ``ECRWSS'' that 
is appropriate for the rate paid (basic, high density, or saturation) 
for the piece in addition to the ``Bulk Rate'' or ``Blk. Rt.'' class of 
mail marking. The Enhanced Carrier Route markings may appear either in 
the postage area or on the top line of the address. Mail entered at 
single-piece Standard rates must bear the marking ``Standard'', or 
under certain conditions, the ``Bulk Rate'' or ``Blk. Rt.'' marking. 
Single-Piece Standard Mail may bear the ``Bulk Rate'' or ``Blk. Rt.'' 
marking only if additional postage is affixed to each piece to bring 
the total postage affixed to each piece up to the correct single-piece 
rate (based on the weight of the piece). For mailers using precanceled 
stamps or permit imprints, the additional postage could be in the form 
of either stamps or a meter. The addition of postage to single-piece 
rate mail marked ``Bulk Rate'' or ``Blk. Rt.'' will allow IOCS data 
collectors to determine that the piece was mailed at a single-piece 
Standard rate.
    These marking standards will allow use of current meter slugs, 
permit imprints, and precanceled stamps that bear the ``Presorted 
First-Class'' and ``Bulk Rate'' or ``Blk. Rt.'' markings. For mailers 
who electronically presort mail, any additional mailing and carrier 
route rate markings can be applied on the top line of the address.
    For MLOCR users, including those preparing mail under value added 
refund (VAR) provisions, it is

[[Page 10076]]
recognized that some changes to their operations may be needed to 
comply with these marking standards. However, these mailers should be 
able to comply with these standards provided they can spray the 
appropriate ``AUTO'' or ``AUTOCR'' marking on mailpieces at the time a 
delivery point barcode is applied. The ``AUTO'' or ``AUTOCR'' marking 
would have to be suppressed any time a 5-digit barcode or no barcode is 
applied. Since pieces in both the automation First-Class mailing and 
the Presorted First-Class mailing will be allowed to bear the marking 
``Presorted First-Class'' in the postage area, this will allow mail not 
coded to delivery point being to be submitted as a properly marked 
Presorted First-Class mailing, provided all other standards for that 
type of mailing are met, including a separate 500 piece minimum 
quantity standard. Similarly the provision for both an automation 
Enhanced Carrier Route mailing and a nonautomation Regular mailing to 
bear the marking ``Bulk Rate'' or ``Blk. Rt.'' in the postage area, and 
the ability to apply the appropriate ``AUTO'' or ``AUTOCR'' marking at 
the time the barcode is applied will allow mail not coded to delivery 
point to be submitted as a properly marked nonautomation Regular 
mailing. The provision allowing the ``AUTO'' and ``AUTOCR'' marking to 
be printed to the left of the barcode in the lower right corner of the 
mailpiece, or in the postage area to the left of a date applied by the 
MLOCR, should make the ``AUTO'' or ``AUTOCR'' markings easier to apply 
for these mailers. In response to the commenter that indicated ink jet 
capability has not yet been developed, it should be pointed out that 
MLOCR users may currently use ink jet to spray a new mailing date and 
the correct ZIP Code for the mailpiece, and that many mailers are using 
these options already. The Postal Service does not believe that it 
would be onerous to adapt these existing systems to apply the ``AUTO'' 
or ``AUTOCR'' markings.
    First-Class, Regular Standard and Enhanced Carrier Route Standard 
mailers opposed to placing markings in the top line of the address will 
either need to modify their address labels or address inserts and 
windows, or to place the applicable mailing and carrier route rate 
markings in the postage area.
    Nonprofit Standard and Preferred Periodicals mailers are not 
affected by these new marking standards because these subclasses were 
not part of this Classification Reform effort. Cost data for 
Periodicals Mail is determined by the publication number that must 
appear in each copy. Accordingly, new marking standards will not be 
applied to Regular Periodicals under Classification Reform.
g. Postage Payment
    Five commenters had concerns about postage payment issues. Four of 
these commenters had concerns about the treatment of mail that would 
not qualify as part of an Automation mailing and would, as a result, 
become part of a Retail (Presorted First-Class) mailing. These 
commenters requested that Retail (Presorted First-Class) mail left over 
after preparing Automation mailings be permitted to bear postage at the 
Automation rates rather than the Retail (Presorted First-Class) rates, 
and that any difference between the postage affixed and the actual rate 
of postage owed for these mailings be paid by means of a meter strip 
affixed to the mailing statement or through an advance deposit account. 
This would simplify their mailing operations and prevent them from 
having to remeter mail entered at Retail (Presorted First-Class) rates. 
Generally mailers affix postage to mail prior to sorting it. Most of 
these commenters indicated that they use MLOCRs to prepare the mail and 
indicated that they would not know whether a piece could be barcoded 
and entered as part of an Automation mailing until after it was sorted. 
These commenters indicated that the proposed standards to separately 
mark and pay postage at the appropriate Retail (Presorted First-Class) 
rates for their nondelivery point barcoded mail would require them to 
run the mail through a second metering operation after it was sorted, 
adding cost and time to their operations. One of these commenters also 
requested that single-piece rate mail that could not be made part of 
either an Automation mailing or a Retail (Presorted First-Class) 
mailing also be allowed to pay the difference in postage between the 
rate affixed and the single-piece rate through a meter strip or an 
advance deposit account.
    The rules for payment of postage under Classification Reform will 
differ by method of postage payment as they do today. For mailings paid 
by permit imprint, all pieces in a mailing must be of identical weight 
(unless manifesting or an optional or alternative procedure has been 
authorized by a rates & classification service center). Presort 
mailings containing more than one rate category must be verifiable 
either based on weight (because the pieces are of identical weight and 
the mailer separates the trays or sacks by rate category at the time of 
verification), or based on the submission of standardized documentation 
showing the number of pieces in each rate category. As indicated under 
the marking section, if any pieces remain that are subject to single-
piece rates, each such piece must have postage affixed at the correct 
single-piece rate, or the pieces must be submitted as a separate 
single-piece rate permit imprint mailing bearing the proper rate 
markings for single-piece rate mail and meeting a separate minimum 
quantity standard for a permit imprint mailing.
    For metered mailings, postage must be metered on each piece at 
either the exact rate of postage for the mailpiece, or at the lowest 
rate applicable to any piece in the mailing, unless the mailer is 
authorized by a rates and classification service center to mail under 
an alternative program such as value added. An exception is provided by 
this final rule for mailing jobs. When a mailing job consists of two 
(First-Class) or two to three (Standard) mailing categories, and all 
the mailings in the mailing job are presented for verification at the 
same time, mailers may apply postage at the lowest rate applicable to 
any piece in the mailing job to all pieces in the mailing job. For 
First-Class metered mailings, each piece weighing more than 1-ounce 
must bear the correct amount of additional postage to pay for the 
additional ounces.
    Metered mailings containing more than one rate category must be 
verifiable either based on weight (because the pieces are of identical 
weight and the mailer separates the trays or sacks by rate category at 
the time of verification), or based on the submission of standardized 
documentation showing the number of pieces in each rate category. 
Presort mailings of nonidentical-weight pieces must (and mailings of 
identical weight may) be accompanied by standardized documentation that 
shows the number of pieces in the applicable rate categories and the 
total postage owed for the mailing. Any difference between the amount 
of postage affixed to the piece and the amount of postage owed for the 
presort mailing may be paid by means of a meter strip affixed to the 
postage statement or through a trust fund account. If any pieces remain 
that are subject to single-piece rates, each such piece must have 
postage affixed at the correct single-piece rate.
    For mailing jobs metered at the lowest rate in the job and having 
all mailings submitted on one postage statement, the individual 
mailings in a job of identical-weight pieces may also be verified by 
weighing as described above. Nonidentical-weight mailing jobs must (and 
identical weight mailings may) be accompanied by documentation that

[[Page 10077]]
shows the pieces and postage at each rate category by mailing with a 
summary for the job. Any difference between the total amount of postage 
affixed to each piece and the amount of postage owed for the total of 
all the presort mailings for the job may be paid by means of a meter 
strip affixed to the postage statement or through a single debit to an 
advance deposit account. If any pieces remain that are subject to 
single-piece rates, each such piece must have postage affixed at the 
correct single-piece rate.
    For precanceled stamp mailings, each piece must bear either a 
Postal Service precanceled stamp or stamps precanceled with a mailer's 
postmark. Mailers must be able to document (either by the weighing 
method or standardized documentation as described for meters) the 
difference between the price paid for the stamp affixed and the amount 
of postage owed for the presort mailing. The additional postage owed 
for the presort mailing and any single-piece rate pieces must be paid 
in the same manner as described for metered mailings. The provisions 
for mailing jobs also apply to precanceled stamp mailings.
    For value added refund mailings, the value added refund 
documentation and payment procedures will be extended to the 
nonautomation presorted portion of the mailing.
    Mailings or jobs of any postage payment method in which cards and 
letters are combined must be accompanied by standardized documentation 
that substantiates that the separate minimum quantity standards for 
cards and letters have been met. The documentation must also contain 
separate rate columns for each card rate and for each letter rate in 
the mailing or mailing job. In addition, if such combined mailings are 
paid with precanceled stamps or meters, the cards must bear postage at 
card rates and the letters must bear postage at the letter rates. Any 
difference between postage affixed and postage owed for the presort 
portion of a mailing or mailing job containing both cards and letters 
may also be paid by means of a meter strip affixed to the postage 
statement or through an advance deposit account. If any pieces remain 
that are subject to single-piece rates, each such piece must have 
postage affixed at the correct single-piece rate, or the pieces must be 
submitted as a separate single-piece rate permit imprint mailing 
bearing the proper rate markings for single-piece rate mail and meeting 
a separate minimum quantity standard for a permit imprint mailing.
h. Minimum Per Piece Rate Breakpoints for Standard Mail (A)
    Five comments were received regarding the minimum per piece rate 
weight breakpoints. All five commenters requested that the same 
breakpoint be used for the entire class of Standard Mail for the sake 
of simplicity. Two of these commenters further indicated that they 
wanted the highest weight breakpoint to apply to the entire class. 
These two commenters also stated a belief that there was no reason for 
the weight limits on heavy letter mail (mail weighing more than 3 
ounces) that is eligible for mailing at the Automation letter rates to 
be different for First-Class, Periodicals, Regular Standard, and 
Nonprofit Standard Mail.
    Separate rate schedules for each subclass of Standard Mail were 
recommended by the PRC and approved by the Governors. The rate 
schedules for the Regular, Enhanced Carrier Route, and Nonprofit 
subclasses of Standard Mail (A) each separately prescribe that mailers 
must pay either the minimum piece rate or the pound rates, whichever is 
higher. The weight breakpoint for each subclass is mathematically 
derived to determine the weight at which the pound rates become higher 
than the minimum per piece rates. Accordingly, the Postal Service 
cannot change the point at which the pound rates apply for individual 
subclasses in this process. Once a particular weight break is exceeded, 
the non-letter size piece and pound rates apply. The Postal Service 
does set the weight limits for eligibility for automation First-Class 
or Periodicals letter rates based on operational and administrative 
criteria. In the interest of simplicity, the Postal Service has 
determined to allow First-Class and Periodicals letter mail that meets 
the higher Standard Mail weight breakpoint to be eligible for barcoded 
letter rates provided that such mail meets all other standards for that 
rate. This affords as many mailers as possible the highest weight cut-
off for Automation letter rates.
i. Acceptance Procedures for Presort Errors
    One commenter requested information as to what would happen if one 
of his machines missorted one piece of mail. This commenter gave an 
example of a situation where on the second pass of an MLOCR, a piece 
destined to a 3-digit bin might mistakenly be sorted by the machine to 
another bin. The commenter indicated that the machine would not report 
that piece at the 3-digit automation rate, but indicated that this 
piece might be subsequently found and placed in a mixed AADC tray 
because it would be difficult to find the proper 3-digit tray. The 
commenter asked whether finding such a piece within a mixed AADC tray 
would be considered an error, and if such errors exceeded whatever 
tolerance might be established, if it would disqualify the mailing or 
result in substantial penalties. The commenter requested that this type 
of error be ignored for acceptance purposes since the primary 3-digit 
and AADC separations would be made and correct postage would be paid on 
the piece.
    Currently, a First-Class barcoded mailing is permitted to contain 
an unlimited amount of residual mailpieces without penalty, even if the 
pieces could have been sorted to a finer extent. This is because the 
residual mail is currently paid at single-piece rates. When 
Classification Reform is implemented, all pieces in an Automation 
mailing will receive a presort rate. Therefore it will be expected that 
all pieces within such mailings be presorted to the finest extent 
possible to 3-digit and AADC destinations prior to placing mail in a 
mixed AADC tray. All possible 5-digit trays will not be expected 
because this is an optional sortation level. Therefore, if during the 
acceptance process, mail is discovered in a mixed AADC tray that could 
have been sorted to a 3-digit or AADC tray in the mailing, such mail 
will be considered a presort error. Because the Postal Service 
recognizes that some machine or human errors can occur in the 
preparation of mailings, the Postal Service allows a tolerance without 
penalty for errors discovered in a mailing during acceptance. If the 
errors found in the mailing exceed this tolerance, mailers will be 
given the same two choices currently available: (1) to take the mailing 
back, correct it, and resubmit it to the Postal Service; or (2) to pay 
additional postage at the appropriate rate for the proportion of the 
mailing found to be in error during the verification process. The 
Postal Service does not agree with the commenter that certain types of 
errors should be ignored because the mailer did not intentionally make 
the error. The Postal Service expects that mailers will exercise good 
machine maintenance and other quality control procedures in their 
operations to ensure that such errors in sorting are minimized.
j. Destination Delivery Unit Discounts
    Ten commenters had concerns over the proposed revisions in the 
qualification criteria for destination delivery unit discounts for 
Standard

[[Page 10078]]
Mail and Publications Service Periodicals to require that mailers take 
carrier route sorted mail to the postal facility where sequencing of 
the mail takes place rather than to the postal facility where the 
carrier is located, in those situations where these were not the same 
facility.
    Seven commenters requested that the change requiring carrier route 
mail to be entered at the location where the mail is sequenced should 
be dropped. These mailers questioned how a small mailer is to know this 
information and that it will be subject to change. Two commenters did 
not disagree with the new standard but recommended that the Postal 
Service develop a list of 5-digit ZIP Code facilities at which mailers 
must drop Destination Delivery Unit mail. One commenter stated that 
this standard only has logic for letters and possibly for automation 
flats, and that applying it to non-automation flats could interfere 
with well established mailing patterns for newspapers and their 
shippers. This commenter requested that postmasters be given the 
authority to allow mail to be dropped at the delivery office.
    As pointed out by one commenter, a change in where the mail is 
dropped makes sense only for letter mail. Moreover, any change in where 
the mail is dropped would apply only to automation (barcoded) letter 
mail that is processed at CSBCS sites. Since Publications Service was 
not recommended as a separate subclass of Periodicals mail, and there 
is no automation carrier route rate applicable to Regular Periodicals, 
this revision will not apply to Periodicals under implementation of 
Classification Reform. Mailers of Periodicals, and of Standard letters 
mailed at other than automation Enhanced Carrier Route letter rates, 
will continue to drop their mail at the destination where the carrier 
is located since it is the carrier who sequences this mail under these 
final rules. However, for automation Enhanced Carrier Route letter 
mail, mailers will be required to drop their mail at the postal 
facility where the mail is sequenced. This could be the facility at 
which the carrier sequence barcode sorter (CSBCS) is located which will 
sequence the mail, rather than the facility at which the carrier is 
located. Mailers may contact the appropriate USPS district drop 
shipment coordinators to determine the sites where automation Enhanced 
Carrier Route letter mail must be dropped to obtain DDU discounts. The 
Postal Service plans to incorporate information as to where automation 
Enhanced Carrier Route mail must be dropped to obtain DDU discounts in 
its AIS Drop Shipment product in the future.
k. Replacement of SDC Network With ADC Network
    One comment was received in response to the Postal Service's notice 
that the SDC network would be replaced by the ADC network for all mail, 
effective with the implementation of Classification Reform. This 
commenter asked whether we would be creating an excess of skin sacks as 
a result of this since there are more ADCs than SDCs. He indicated that 
today all working flat mail is placed in the same sack, and it appears 
that the network change would require a separate sack for this mail for 
each ADC.
    The sortation rules for mail sorted to ADCs will require either a 
full tray (with no overflow) or a sack meeting a prescribed minimum 
quantity. Therefore there should not be an excess of skin sacks created 
by this network change. Mail that cannot be placed in full letter or 
flat trays, or in sacks meeting the specified minimum quantity would 
continue to be merged into mixed trays or sacks with the label changed 
to Mixed ADC rather than mixed states.
l. Enhanced Carrier Route Rate Eligibility for Routes With Fewer Than 
Ten Stops
    One commenter commended the USPS for allowing mail destined for 
carrier routes that have fewer than 10 delivery stops to qualify for 
the Saturation Enhanced Carrier Route rates if it meets the applicable 
density and documentation standards.
m. Eligibility for Enhanced Carrier Route High Density Rates
    Three comments were received in response to the Postal Service's 
indication that walk sequencing rather than line-of-travel (LOT) 
sequencing would be required to qualify for High Density Enhanced 
Carrier Route rates. All three commenters indicated that LOT sequencing 
should be permitted.
    Currently, walk sequence is required to obtain these rates, and 
that standard has been retained in the applicable DMCS provisions 
recommended by the PRC and accepted by the Governors.
n. Density Standards for Saturation Enhanced Carrier Route Mail
    One commenter requested an explanation as to why in proposed DMM 
sections E632.1.7b and c, multiple pieces for a single delivery address 
are not allowed to count toward meeting the Saturation Enhanced Carrier 
Route qualification criteria, but are permitted to count toward meeting 
the 125-pieces per route standard for High Density Enhanced Carrier 
Route rates. This commenter asked whether this excludes multiple 
dwelling units such as apartments or trailer parks. He requested 
clarification of this rule and also a modification to make this rule 
consistent for qualification for both rates.
    The proposed DMM sections E632.1.7b and c do not reflect a change 
from current standards but merely carry forward the current standards 
in DMM E334.1.6d. To meet the saturation criteria, the Postal Service 
requires delivery of a mailpiece to at least 90% of the active 
residential addresses or at least 75% of the total number of active 
possible delivery addresses for each carrier route claiming these 
rates, whereas for High Density rates it requires only a total of 125 
sequenced pieces per route. A delivery address for purposes of meeting 
the Saturation standards could be individual apartments in an apartment 
complex or highrise or individual trailers in a trailer park. This 
standard for saturation rates does not preclude mailers from mailing 
more than one piece to a specific delivery address, it only specifies 
that the specific delivery address to which a piece or pieces are 
delivered can count only once towards meeting the applicable percentage 
of active possible delivery addresses per carrier route.
o. Placement of All Packages or Pieces for the Entry SCF in 3-Digit or 
Finer Trays or Sacks
    Eleven comments were received in response to the Postal Service's 
proposal to require that all mail for the 3-digit ZIP Codes served by 
the SCF of the entry post office be trayed or sacked to a 3-digit or 
finer level of sortation. This proposed standard could have resulted in 
the preparation of less-than-full 3-digit trays and sacks for the 3-
digit ZIP Codes served by the SCF of the entry post office where full 
3-digit or finer trays or sacks for these destinations could not be 
prepared. This standard was added to avoid having small quantities of 
local mail being transported from the local office to an ADC or AADC 
where it would undergo processing and transportation back to the SCF at 
which it was entered. The avoidance of this loop would result in better 
service and an expanded opportunity for mail to qualify for destination 
SCF rates.
    Four commenters indicated that this standard should be changed from 
required to optional because it would be impossible for many drop 
shipment mailers to comply with it. These

[[Page 10079]]
commenters pointed out that at many mail preparation facilities, 
mailings are presorted and produced first and decisions as to 
destination entry drop points made second after the mailer is able to 
determine the total volume of mail it has produced on a given day for 
certain drop shipment destinations. Because the presort is performed 
prior to determining drop entry points, requiring 3-digit sortation 
based on the SCF service area of the facility at which the mail is 
dropped would require these mailers either to resort the mail by drop 
ship sites or, to manually remove this mail from ADC, AADC, mixed ADC 
and mixed AADC trays or sacks and make manual corrections to mailing 
documentation. Six commenters indicated that these less-than-full 3-
digit trays should be eligible for the applicable 3-digit or 3/5 rate 
rather than a basic rate. One commenter believed that a standard for 
separate 3-digit trays was overkill and requested the ability to 
prepare an SCF tray for this mail with separator cards. This would 
prevent mailers from having to prepare 10 separate less-than-full 3-
digit trays for SCF areas such as White River Junction, VT, which 
serves 10 different 3-digit ZIP Code areas. One commenter opposed this 
standard, indicating that consistency in mail preparation transcends 
the minimal benefit derived from this proposal.
    In response to the comments by drop shipment mailers, the Postal 
Service is revising the final DMM language to require preparation of 
these less-than-full 3-digit trays or sacks only for the 3-digit ZIP 
Codes served by the SCF of the post office where the mail is verified. 
These trays or sacks would be optional for other entry points. The 
Postal Service would also like to point out that because tray label 
destinations for mixed AADC trays and mixed ADC trays and sacks of mail 
will differ depending on the location of where the mail is dropped, 
plant verified drop shipment mailers will be expected to make 
appropriate tray label changes for any mixed AADC trays or mixed ADC 
trays and sacks that are drop shipped to other than the facility where 
the mail is verified.
    The Postal Service does not want to reinstitute preparation of SCF 
trays. Therefore the Postal Service is retaining the standard that, 
after preparation of any applicable carrier route and 5-digit trays or 
sacks, and all 3-digit trays or sacks meeting the applicable minimum 
quantity standards, any mail (for automation and upgradable letters) or 
any 5-digit and 3-digit packages (for other sortations) remaining for 
the 3-digit ZIP Code or ZIP Codes served by the post office where the 
mail is verified, must be prepared in separate 3-digit sacks or trays. 
The only exception is that for automation letter mailings, preparation 
of 3-digit scheme trays would be required where scheme sorts are 
indicated in DMM L003. The Postal Service recognizes that in some SCF 
areas like White River Junction, VT, which serves 10 different 3-digit 
ZIP Code areas, this could result in as many as 10 separate less-than-
full trays or sacks for mailings at other than automation letter rates. 
(For automation rate letters, only 3 separate scheme trays would be 
required for this mail, assuming there were pieces in the mailing for 
each of these schemes.) However, as stated above, the Postal Service 
does not wish to reinstitute preparation of SCF packages, trays, or 
sacks. The Postal Service is also retaining its position that when the 
pieces in these entry or origin 3-digit (3-digit scheme for automation 
rate letters) trays or sacks do not meet applicable minimum quantity 
standards for 3-digit or 3/5 rates, the pieces must be paid at basic 
rates.
p. Presort Accuracy Validation and Evaluation (PAVE)
    The Postal Service proposed to require use of PAVE-certified 
software or standardized documentation when preparing mailings under 
any of the reformed subclasses. Four commenters responded to this 
proposal. One commenter indicated that PAVE should not be required for 
mail acceptance, rather there should be only a requirement for 
standardized documentation. One commenter indicated that he is waiting 
for further information. This commenter recommended that the 
verification process for all changes and new proposals be incorporated 
into the standardized documentation standards in order to eliminate 
redundant documentation and streamline acceptance. One commenter 
indicated that his company has invested in sophisticated documentation 
software and needs the standardized documentation requirements in order 
to make necessary programming changes. One commenter indicated that the 
Postal Service needs to establish timely and reasonable procedures for 
mailers to have their documentation certified as standard. One 
commenter sent in a sample of current documentation to determine 
whether it met the standardized documentation requirements.
    The Postal Service has retained the standard for mailers to use 
either PAVE-certified software or to use standardized documentation. 
The standardized documentation requirements are included in this final 
rule. Mailers who use standardized documentation need not also meet the 
PAVE-certified software standard although its use is strongly 
recommended. Mailers using PAVE-certified software can be assured that 
their documentation will meet the standardized documentation 
requirement. The standardized documentation specified in this final 
rule does not incorporate all the new eligibility and mail preparation 
standards of Classification Reform as requested by one commenter. The 
standardized documentation is used to show that the presort criteria 
have been met and that rates were properly claimed on the postage 
statement. Certification of addressing standards, move update standards 
for First-Class Mail, certification that enclosed reply pieces in 
automation rate mailings are prepared with proper barcodes and FIMs, 
etc. cannot properly be captured by standardized documentation and will 
be certified through separate use of a Form 3553, the postage 
statement, or other means. Consolidation of all these certification 
standards may be considered in the future but is not part of these 
final implementing rules.
    The Postal Service plans to have PAVE testing available for 
affected presort categories prior to implementation of Classification 
Reform. PAVE test files will be available to software vendors on March 
22 for First-Class and Regular Standard letters and flats categories, 
and on March 29 for Enhanced Carrier Route Standard categories. This 
will provide sufficient time for the Postal Service to evaluate 
returned test files and certify participants prior to implementation of 
Classification Reform. Vendors whose files fail as a result of an 
initial evaluation will also have time for retesting and reevaluation 
for certification prior to the July 1 implementation date. Test files 
for Regular Periodicals will not be available until early summer as a 
result of the significant changes made to the quality and preparation 
standards in this category from those published in the proposed rule. 
Accordingly, the standard for use of PAVE certified software or 
standardized documentation for Regular Periodicals will not be required 
until January 1, 1997.
    Mailers are advised that PAVE certification does not remove the 
requirement to submit documentation with each mailing where 
documentation is required. This is because PAVE tests the ability of a 
software program to sort addresses properly, but does not test the

[[Page 10080]]
mailer's proper use of it or the application of proper mailing 
parameters to each mailing. Use of PAVE-certified software will assure 
that the documentation produced meets the requirements for standardized 
documentation. PAVE also tests the ability to prepare properly 
formatted postage statement facsimiles. Software that is developed in-
house by mailers may be PAVE-certified. Requests for PAVE certification 
information and tests should be directed to:

Pave Program, National Customer Support Center, US Postal Service, 
6060 Primacy Pky Ste 101, Memphis TN 38188-0001

    A list of PAVE certified products, by vendor, will be available on 
RIBBS, the Postal Service Rapid Information Bulletin Board System, and 
from the above address.
q. Perceived Restriction on the Mailability of Postcards as Bills
    One commenter pointed out that the proposed Domestic Mail 
Classification Schedule language in section 232.2 indicated that 
mailpieces having certain characteristics such as punched holes, 
vertical tearing guides, an address portion which is smaller than the 
remainder of the card and numbers or letters unrelated to postal 
purposes appearing in the address portion of the card, are not mailable 
as a postal card or postcard unless the mailpieces are prepared as 
prescribed by the Postal Service. This commenter believed that these 
standards were new restrictions and was concerned that the Postal 
Service included neither descriptions of ``face'' and ``holes, tearing 
guides'' in the proposed DMM language in the proposed rule, nor 
preparations ``prescribed by the Postal Service'' in order for mailers 
to maintain mailability for such pieces. The commenter believed that 
this meant that the Postal Service was seeking to prohibit such pieces 
from being mailed and expressed concern about the impact this would 
have on mailers of postcard bills.
    DMCS section 232.2 does not set forth new restrictions on 
postcards. This section carries forward the provisions of current DMCS 
section 100.043. The related DMM preparation standards for this DMCS 
provision are in current DMM C100.2.6 through 2.8. The Postal Service 
did not propose any changes to DMM C100.2.6 through 2.8, except that 
DMM C100.2.8 was revised to reflect the changes in the names of the 
classes and subclasses of mail proposed in MC95-1 and to reflect the 
proposed change to prepare this mail in trays rather than sacks. The 
reason current DMM C100.26 and 2.7 were not included in the proposed 
rule is because no changes were proposed for those existing sections. 
The asterisks that appeared between revised DMM C100.2.1 and revised 
DMM C100.2.8 meant that no changes were made to current rules that 
appeared between these two sections in the DMM. Accordingly, the 
current DMM provisions in C100.2.6 and 2.7 allowing postcards having 
the characteristics described in DMCS section 232.2, to be mailed at 
card rates if they are prepared under the provisions of DMM C100.2.8 
will remain in effect. The commenter is also advised that the 
additional preparation standards in C100.2.8 for pieces having the 
aforementioned physical characteristics are for the purposes of 
maintaining eligibility for card rates. Pieces having punched holes, 
vertical tearing guides, an address portion smaller than the remainder 
of the card, and numbers or letters unrelated to postal purposes 
appearing in the address portion of the card, that are described in DMM 
C100.2.6 and 2.7, and that do not meet the additional standards in DMM 
C100.2.8, are still mailable but must pay postage at the letter rates 
rather than the card rates.

2. Automation Mailings

a. 100% Barcoding
    Nineteen commenters responded to the Postal Service proposal that 
mailings at the proposed automation First-Class and automation Standard 
Mail subclasses be comprised of 100% delivery point barcoded pieces for 
letters and 100% ZIP+4 barcoded or delivery point barcoded pieces for 
flats. Although an automation subclass was not recommended by the PRC, 
the Postal Service reviewed these comments in light of its desire to 
retain the 100% barcoding standard for automation mailings in the 
First-Class Letters and Parcels subclass, automation mailings in the 
Regular Standard Mail subclass, and automation mailings in the Enhanced 
Carrier Route Standard Mail subclass. Furthermore, the Postal Service 
plans to extend the 100% barcoding standard to automation (barcoded 
rate) mailings within the Regular Periodicals subclass. Comments on 
this extension to automation mailings of Regular Periodicals will be 
permitted as discussed above.
    Two commenters supported this standard, one of which indicated that 
there is no need to phase in this standard because there is another 
subclass at which to mail noncoded pieces. Another commenter requested 
that implementation of this standard be delayed.
    Four commenters requested a gradual increase in the percentage of 
barcoded pieces needed to qualify, two of which suggested moving the 
standard first to 90% and then to 95%, and one which wanted a 2-year 
phase-in period. One commenter suggested that the standard be changed 
to 95%, and another suggested that the Postal Service provide some 
tolerance. One commenter asked whether there will be any error 
tolerance for occurrences such as labels falling off, address 
misprints, or a barcode spraying over two envelopes.
    Two commenters requested the rules be changed to allow nonbarcoded 
letter mail to be placed in the same trays as delivery point barcoded 
mail, one suggesting separation of barcoded and nonbarcoded mail in all 
trays, and one suggesting this practice be limited to AADC and mixed 
AADC trays. Three other commenters indicated that splitting their mail 
lists into two separate mailstreams, one with delivery point barcodes 
and one without, will increase their mail preparation expenses. One of 
these indicated it could result in more nonpresorted mail and another 
commenter indicated that this standard would eliminate large volumes of 
easier to process mail. Another commenter stated that together with the 
150-piece minimum for rate qualification, the 100% barcoding standard 
will result in a net increase in postage for many mailers, which in 
turn could lead to a decrease in the volume of barcoded and presorted 
mail. This commenter further stated that because postage for 
nonbarcoded mail will increase total postage, the 100% barcoding 
standard could result in a decrease of business for mail service 
companies.
    As indicated in the comment section of the December 22, 1995, 
proposed rule, when mailers, as is currently permitted, mix delivery 
point barcoded mail and non-delivery point barcoded mail within 3-digit 
and residual portions of their barcoded rate mailings, the non-delivery 
point barcoded mail is rejected from barcode sorters and must be rerun 
on MLOCRs or multiposition letter sorting machines (MPLSMs). (Mail 
presorted to 5-digit packages and trays must currently be 100% delivery 
point barcoded.) Requiring mailers to prepare a separate mailing for 
non-delivery point barcoded mail eliminates these extra handlings and 
allows this mail to be directed properly from the start, resulting in 
more efficient Postal Service processing. These efficiencies are 
recognized in the lower automation rates recommended by the PRC and 
approved by the Governors. Accordingly, the Postal Service does not

[[Page 10081]]
believe that phasing in or delaying this standard is appropriate. In 
return for lower automation rates, mailers will have to perform the 
additional work of separating nondelivery point barcoded mail (letters) 
and non-ZIP+4 or delivery point barcoded mail (flats) from barcoded 
mail, and presenting it as a separate Presorted First-Class, 
nonautomation Regular Standard, nonautomation Enhanced Carrier Route 
Mailing, or nonautomation Regular Periodicals mailing.
    The Postal Service does not understand how this standard will 
eliminate large volumes of easier to process mail or how it will lead 
to a decrease in the volume of barcoded and presorted mail as some 
commenters suggested. The nonautomation mailing rates approved by the 
Governors are higher than current nonautomation rates, and much higher 
than the automation rates to be implemented. For example, the rate 
difference between an automation First-Class mailing and a Presorted 
First-Class mailing is 3.4 cents-per-piece at basic automation rates 
and 4.1 cents-per-piece for 3-digit automation rates. There is a 7.3 
cents-per-piece difference between automation Regular Standard basic 
rates and nonautomation Standard Regular basic rates, and a 3.4 cents-
per-piece difference between automation Regular Standard 3-digit rates 
and nonautomation 3/5 Regular Standard rates. Based on these 
incentives, the Postal Service believes most mailers will try to 
qualify as much mail as possible for the lower automation rates, 
thereby leading to an increase in barcoded mail.
    One commenter took exception to a Postal Service response to a 
comment indicating that if the 100% barcoding standard results in more 
nonbarcoded mail presented for OCR processing at the origin post 
office, the Postal Service believes that it has the operational 
capacity to process this mail. The commenter stated that mailers have 
been told for years that nonqualified residual must be presented early 
in the night because operating units aren't able to handle this volume. 
This commenter maintains that the 100% barcoding standard will result 
in larger volumes of nonbarcoded mail and that this in turn will affect 
the cut-off times that are now around 9:00 p.m. for acceptance of this 
mail.
    As indicated above, the Postal Service does not believe that the 
100% barcoding standard will result in larger volumes of nonbarcoded 
mail. When mailers separate out the current 15% of their nonbarcoded 
mail that is currently permitted within barcoded rate mailings and 
submit it as a separate mailing, they are not increasing the total 
amount of nonbarcoded mail that must be processed by the Postal 
Service. Furthermore, these mailers are likely to submit the non-
delivery point barcoded pieces as either a Presorted First-Class or 
nonautomation Regular Standard mailing. These presorted nonautomation 
rate mailings will contain 5-digit, 3-digit, and ADC trays (AADC trays 
for upgradable mail) that can be dispatched directly to the appropriate 
facility and thereby bypass individual piece processing at the entry 
SCF. For automation Regular Standard mail, mixed AADC trays will be 
directed to concentration centers, and nonautomation mixed ADC trays 
will be directed to origin ADC for processing, also bypassing 
processing at the entry SCF (unless the entry SCF happens to be the 
concentration center or ADC). First-Class Mail received at the entry 
post office in mixed AADC or mixed ADC trays will be processed at the 
entry SCF. However, the processing of this mail will be more efficient 
than the current processing of residual mail. Current residual mail 
contains a mix of barcoded and nonbarcoded pieces. Under Classification 
Reform, mixed AADC trays of automation rate mail will be 100% barcoded 
and can be directed to an outgoing primary barcode sorter, mixed AADC 
trays of upgradable nonbarcoded mail can be directed to an MLOCR 
operation, and mixed ADC trays of nonupgradable mail can be directed to 
the appropriate mechanized or manual operation. Furthermore, because 
the SCF of the entry post office will not also have to process on OCRs 
the current volume of mailer-prepared pieces without delivery point 
barcodes that are rejected from that plant's barcode sorters, there 
should be an offsetting lessening of mail volume presented to a plant's 
OCRs for processing. If, despite all these offsetting factors, a higher 
quantity of nonbarcoded single piece or mixed AADC barcoded mail is 
experienced at a particular postal facility, the Postal Service can 
make internal adjustments to handle that mail. Accordingly, the Postal 
Service reiterates its belief that it has the operational capacity to 
process this mail.
    Two comments were received regarding the exception set forth in the 
proposed rule to allow outgoing courtesy reply mail envelopes bearing a 
FIM and a preapplied unique 5-digit or unique ZIP+4 barcode to be 
considered to have a proper delivery point barcode as opposed to an 11-
digit delivery point barcode required for all other mail. The Postal 
Service allowed this because this mail can be easily identified at 
acceptance by the presence of the FIM. One commenter indicated that he 
was pleased to see this provision and the other commenter noted that 
this exception was missing from the DMM standards and requested it be 
added to the DMM. Since the incidence of courtesy reply mail within the 
outgoing barcoded mailstream should be small, and limited to MLOCR 
users, this exception will be handled as an acceptance issue and will 
not be included in DMM standards.
    One commenter indicated that the 100% barcoding standards should 
also apply to Nonprofit Standard Mail and to Periodicals mail. The 100% 
barcoding standards have been added to Periodicals Automation mailings. 
Nonprofit Standard and Preferred Periodicals mail is not part of this 
phase of Classification Reform and therefore will not be affected by 
this standard at this time. As indicated above, this standard is being 
applied to automation Regular Periodical mail under the final rule.
    One commenter suggested that the Postal Service cannot barcode all 
addresses and that mailers therefore should not be held to this 
standard. This commenter also believed that there are addresses in the 
United States that have not been assigned ZIP+4 codes. One commenter 
indicated the ZIP+4 database has errors and suggested that the Postal 
Service match the DSF file against the ZIP+4 file, using CASS-certified 
software, to list all noncoded addresses, and further list good 
addresses that are not matched to the finest level to determine why 
this might happen. Another commenter expressed concern that valid 
addresses might not be coded due to data problems or strict software 
standards, and invalid addresses might appear valid because incorrect 
ZIP+4 codes are assigned. One commenter requested that the standard be 
changed from 100% to between 95% and 97% to account for new addresses 
and 911 conversions that are not in the database.
    There are no addresses for which the Postal Service is unable to 
assign a ZIP+4 code. For legal and privacy reasons, the Postal Service 
cannot disclose mailing lists. The ZIP+4 files contain ranges of ZIP 
Codes and are not intended as a product that would allow a mailer to 
determine whether an address on a mailpiece actually exists. Mailers 
with good quality addresses can obtain delivery point barcodes on their 
mailpieces. If they cannot, those pieces can be mailed at the 
appropriate rates for nonbarcoded mailings. Having

[[Page 10082]]
identified a need for accurate barcodes to ensure proper automation 
sortation, the Postal Service tests and certifies address matching 
software to ensure that it is producing correct barcodes. Because only 
correct barcodes are acceptable, software is controlled to help ensure 
that an incomplete or otherwise poor quality address receives a barcode 
only if it is correct. The Governors approved reduced postage rates for 
mail with correct barcodes. Those rates were not designed to apply to 
nonbarcoded mail or to mail with incorrect barcodes. Use of bad 
barcodes causes misdirected mailpieces. This in turn causes increased 
costs and reduces the Postal Service's ability to provide timely, 
consistent delivery service. To aid mailers with barcoding, the Postal 
Service already has a variety of tools to assist in improving address 
quality. If a mailer using CASS- or MASS-certified software cannot 
apply a correct delivery point barcode or, for flats a correct ZIP+4 
barcode, to mailpieces, the mailer should, and will be required to, 
mail those pieces at the Presorted First-Class, presorted nonautomation 
Regular Standard, nonautomation Regular Periodicals, or single-piece 
rates, whichever is applicable.
b. Courtesy and BRM Barcoded Envelopes
    Thirteen commenters responded to the proposed standard that, 
effective January 1, 1997, letter-size courtesy and business reply 
envelopes and cards included in letter-size an flat-size automation 
First-Class or automation Standard mailings must be automation-
compatible, bear a FIM, and bear a correct barcode for the address to 
which the piece is returned. Three commenters requested a more liberal 
phase-in period for this standard, one specifying a minimum of 1 year, 
to allow mailers to exhaust their existing stock of reply mail letters 
and cards. Four commenters indicated that they do not support this 
standard, three of which stated that they object to the standard 
because enclosed reply mail has no connection with the cost of 
processing the outgoing mailpiece. One of those commenters further 
stated that the cost of processing reply mail should be borne by the 
reply mail.
    Several commenters had concerns over the certification standard and 
enforcement of this standard. One commenter stated that this will add 
costs to his mailing operation by requiring someone to proof every 
reply piece prior to insertion. Two commenters requested a further 
explanation of the certification standards and indicated most 
lettershops are not involved with the creation and postal approval of 
courtesy and business reply envelopes. Two commenters stated tracking 
down the producer of the business reply piece will be difficult. One 
commenter stated that the Postal Service's contention that a mailer 
capable of printing a barcode on an outgoing piece should be able to 
prepare properly barcoded reply pieces has no bearing on this standard 
because some mailers do not print the reply pieces, only the host 
pieces. Three commenters indicated that liability for noncompliance 
should be the owner of the mail, not the preparer or presenter. One 
commenter stated the Postal Service needs to clarify the actions that 
will be taken for noncompliance. One commenter stated that enforcement 
seems unattainable and that this standard could renew a call for a 
public automation rate. One commenter assumed that an improperly 
prepared reply piece discovered at acceptance would downgrade the 
entire mailing to a higher rate of postage and stated that such a 
penalty is draconian and a dangerous precedent that could drive postal 
customers away from using return mailpieces rather than encourage their 
use.
    The Postal Service is adopting its proposal that letter-size reply 
envelopes and cards that are included within both letter-size and flat-
size mailpieces entered as automation First-Class, automation Regular 
Standard and automation Enhanced Carrier Route Standard mailings, must 
be automation-compatible, bear a FIM, and a correct barcode for the 
reply address. In addition, the Postal Service is extending this 
requirement to automation mailings of Regular Periodicals. Comments on 
this extension to Regular Periodicals will be permitted as discussed 
above.
    In addition to the customer convenience of a reply vehicle, 
increasing the use of barcoded reply vehicles is expected to keep 
postage rates down by making this mail more efficient to process. The 
Postal Service recognizes that mailers will need to work with their 
customers and possibly modify their contracts with advertisers and 
others to ensure that this standard is met. To allow time for this and 
for utilization of existing reply mail stock, the Postal Service is 
setting an implementation date of January 1, 1997, for this standard. 
The Postal Service does not believe a longer delay of this standard is 
warranted. At that time, automation First-Class, automation Regular 
Standard, automation Regular Enhanced Carrier Route, and automation 
Regular Periodicals mailers will be required to certify that enclosed 
reply pieces are properly prepared when the mailing is presented to the 
post office. Mailers will certify this by checking a box on the postage 
statement and signing the statement. For this purpose, the mailer is 
whomever presents the mail to the post office. As indicated above, it 
will be up to mailers to work with their customers and advertisers to 
ensure that reply pieces provided to mailers comply with the standards 
for barcoded reply pieces. Upon implementation, if mailers cannot 
certify that this standard has been met, or noncomplying reply pieces 
are found within the outgoing mailing, the mailing may not be mailed at 
the automation rates and must pay the higher nonautomation rates.
    Several commenters had questions concerning the standards for 
proper preparation of reply mail. Two commenters had concerns over the 
proposed standard for a delivery point barcode on all pieces. One 
pointed out that business reply mail is required to use a ZIP+4 barcode 
and that most courtesy envelope mail uses a unique ZIP+4 barcode. This 
commenter indicated that requiring an 11-digit delivery point barcode 
will require many mailers to make expensive form design changes to 
accommodate the larger barcode without any benefit to the Postal 
Service. The other commenter pointed out that there is a discrepancy 
between the Postal Service's apparent willingness to accept courtesy 
reply mail bearing unique 5-digit and ZIP+4 barcodes as properly 
barcoded outgoing pieces for purposes of meeting the 100% barcoded 
standard for automation rates, and its unwillingness to accept them on 
courtesy reply pieces contained within such mailings. One commenter 
questioned whether the standards for barcode preparation in DMM C840 
would also be required as this section was not referenced in the 
appropriate E module sections of the proposed DMM language. This 
commenter was concerned that, if the reflectance standards contained in 
C840 will be required, that the envelope industry may not be able to 
meet them. This commenter also stated that because most reply envelopes 
are printed with a flexographic process, 100% of the barcodes cannot be 
guaranteed to meet the automation standards as this process does not 
produce results as consistent as laser, inkjet, and impact printing. 
One commenter, for environmental reasons, requested that the Postal 
Service work to modify the reflectance tolerance levels in DMM C840 for 
the area around the barcode, to improve the capability of its barcode 
readers to read nonpolymer

[[Page 10083]]
window envelope coverings, and to relax its flexibility standards in 
order to accommodate recycled paper. Another commenter requested that a 
reference to DMM C840 be included in the DMM standards for enclosed 
courtesy reply mail because this is the section that provides for 
barcodes in the address block. One commenter requested the ability to 
put barcodes in the address area for business reply mail. Another 
commenter believed that the Postal Service had committed to allow the 
barcode, permit holder, and permit number to appear on inserts through 
a window on business reply mail in early 1996 and thanked us for this 
effort.
    The DMM standards concerning courtesy reply mail can be found in 
DMM E140.1.5, E241.1.2, E641.1.2, and C810.8. The Postal Service has 
determined that, for purposes of enclosed courtesy reply mail under 
this section, a unique 5-digit or unique-ZIP+4 barcode provided by the 
Postal Service will satisfy the delivery point barcode standards. This 
will make these rules consistent with the acceptance provisions for 
allowing outgoing courtesy reply mail prepared in this manner to count 
toward the 100% delivery point barcoding standards for letter-size 
automation rates. The Postal Service will require that barcodes on 
enclosed reply mail meet the barcode, reflectance, and window standards 
in DMM C840. The Postal Service recognizes that some recycled paper 
will not meet the reflectance standards. However, recycled paper that 
meets the Postal Service reflectance standards is available. Because 
the reflectance standards reflect the current capabilities of USPS 
barcode reader equipment they cannot be modified. Originators of reply 
mail pieces will be expected to make the necessary changes to the 
preparation of these pieces to ensure that they meet all the applicable 
DMM standards. Although the Postal Service has not begun a formal 
rulemaking process to allow BRM format elements such as the name of the 
permit holder and the permit number to appear through a window on BRM 
pieces, it will consider this for a future rulemaking.
    The Postal Service will provide, free of charge, camera-ready 
positives of appropriate FIMs and correct barcodes for the production 
of reply mail. Mailers should contact their local Postal Service 
account representative or postal business center to obtain the 
positives and additional information on preparation standards. 
Obtaining the correct barcode for mailpieces is extremely important. 
The Postal Service assigns ZIP+4 barcodes to BRMAS reply pieces. 
Publication 353, Designing Reply Mail, contains information on 
correctly preparing barcoded courtesy reply mail and business reply 
mail. Additional information on business reply mail and barcode 
standards is contained in the Domestic Mail Manual. These publications 
contain information on how to prepare barcodes that appear in the 
address block of reply pieces and those that appear through an address 
window.
c. Barcoded Tray and Sack Labels
    Nineteen comments were received concerning the proposal to require 
that automation First-Class and Standard Mail, and automation-
compatible Publications Service Periodicals be prepared with barcoded 
tray or sack labels. The proposed Publications Service subclass of 
periodicals was not recommended to the Governors by the Postal Rate 
Commission. Instead revised rates for Regular Periodicals were 
recommended and these changes to Periodicals have been accepted by the 
Governors. The Postal Service is applying the requirement for barcoded 
tray and sack labels to all automation Regular Periodicals under these 
final rules.
    Eight commenters indicated that implementation of this standard 
needs to be delayed in order to give mailers enough time to buy 
equipment and/or adapt their systems. Two of these commenters indicated 
that at least 6 months was needed and another indicated that the date 
should be much later than July 1, 1996. One commenter indicated that he 
must replace dot matrix printers with ink jet, thermal or laser 
printers. One commenter indicated that this standard should be dropped 
as it will require him to stock labels for every 3-digit ZIP Code 
because he will no longer be able to handwrite labels for destinations 
that are seldom used. He indicated that this will cause him either 
enormous storage problems or require him to purchase either an outside 
vendor's system of special printers and unprinted labels. One commenter 
simply stated that his operation is not set up to handle barcoded 
labels at this time.
    Six commenters indicated that the barcode specifications in the DMM 
cannot be met by most mailers and are not met by the Postal Service's 
own label printing facility. Problem areas mentioned included the point 
size, characters per inch, and size of the labels. These commenters 
also pointed out that these DMM standards are not met by the PASSPORT 
and Monarch printers system indicated to be a way to meet these 
standards in the proposed rule. One commenter indicated that the DMM 
M032 exhibit needs to include the appropriate CINs for tray and sack 
labels under Classification Reform.
    Three commenters were concerned about the Postal Service's ability 
to supply the total demand for these labels in a timely manner. One 
commenter stated that the Postal Service needs to design better tray 
label holders that will hold the label in place.
    The Postal Service has investigated the barcode label 
specifications in the DMM in relation to these comments. As a result, 
some changes to the barcode tray and sack label specifications in DMM 
M032 have been made and are published in this notice. Revised CINs have 
also been published in the DMM section of this notice. In order to give 
mailers time to incorporate these barcode specification changes into 
any current systems they may have to produce labels and to give other 
mailers time to buy necessary equipment and adapt their mailing systems 
to incorporate barcoded tray labels, the Postal Service is delaying the 
requirement to use barcoded tray and sack labels with automation rate 
mailings until January 1, 1997. At that time automation First-Class, 
automation Regular Standard, automation Enhanced Carrier Route, and 
automation Regular Periodicals mailings must be prepared with barcoded 
tray or sack labels. As indicated above, comments will be allowed on 
the extension of this standard to Regular Periodicals mail.
    The Postal Service currently has tray management systems that 
utilize barcoded container labels deployed at its largest plants and is 
aggressively deploying these systems to other plants. Barcoded tray 
labels are needed to capture the efficiencies of the tray management 
systems. Barcoded labels are also currently used to sort trays and 
sacks of Standard mail at BMCs. Accordingly, mailers are strongly 
encouraged to begin using barcoded tray labels prior to the January 1, 
1997, implementation date.
    Furthermore, mailers are reminded that, even though the requirement 
to use barcoded tray and sacks labels with automation mailings has been 
delayed, new tray and sack labels will be required for all mailings 
under Classification Reform (with the exception of some sort levels of 
First-Class Mail) due to the changes in postal networks, the addition 
of scheme sorts, and changes to the names of the classes of mail.
    As indicated in the previous notice, the Postal Service will supply 
barcoded tray and sack labels. Customers must complete Form 1578-B and 
submit it to their local post office, which after

[[Page 10084]]
checking the order, will forward it to the Postal Service Label 
Printing Center in Topeka, Kansas. The labels will be delivered in 
approximately 6 weeks of the order. These labels will reflect the 
network changes and the new CINs for Classification Reform and can not 
be used until July 1, 1996.
    Alternatively, mailers having a personal computer and a modem can 
obtain free PASSPORT software from the Postal Service that will enable 
them to order labels directly from the Label Printing Center in Topeka. 
In addition, the PASSPORT system will allow mailers to print barcoded 
labels on demand if they use one of three printers--Monarch 9425 or 
Monarch 9445, or Intermac 3000. The Passport system also includes free 
updates to the Postal Service labeling lists in DMM module L. PASSPORT 
software or further information about Passport may be obtained from the 
National Customer Support Center at 1-800-238-3150.
    The Postal Service purchased new tray labels holders last year that 
hold labels more firmly in place. The Postal Service is systematically 
replacing old tray label holders with the new ones.
d. ZIP Code Limits on Letter-Size Automation Carrier Route Rates
    Eleven commenters responded to the proposal to limit letter-size 
automation Carrier Route rates to ZIP Codes where mail will be 
sequenced either manually or by a carrier sequence barcode sorter 
(CSBCS). One commenter is opposed to the idea of reducing eligibility 
for carrier route rates. One commenter indicated that this limit on 
where letter-size automation carrier route rates can be obtained 
worsens the rate qualification degradation caused by the 150-piece 
standard for 5-digit and 3-digit Automation rates. This commenter 
indicated that he will mail at the Enhanced Carrier Route nonautomation 
letter rates rather than try to qualify mail for the 5-digit barcoded 
rate.
    As indicated in previous notices, the limits on availability of 
automation Carrier Route letter rates are necessary for efficient 
Postal Service processing. For an increasing number of 5-digit ZIP Code 
areas, the Postal Service sorts mail to delivery point sequence (DPS), 
the sequence in which carriers deliver the mail, using two passes on 
delivery barcode sorters (DBCSs). Where this takes place, the carrier 
does not have to sort this mail manually into delivery or walk 
sequence, which saves carrier in-office time. At postal facilities 
where DPS processing is performed, it is to the Postal Service's 
advantage to have as much mail as possible DPS processed on the 
automated equipment. Currently, at 5-digit ZIP Code areas for which DPS 
processing on DBCSs has been implemented, all mailer-prepared carrier 
route and walk-sequence presorted letter mail received with barcodes is 
processed on DBCSs rather than being directed to carriers for manual 
sequencing. Carrier route and walk-sequence sorted letter mail without 
barcodes is directed to MLOCRs for application of barcodes and 
subsequent DPS processing. In many cases today, this process results in 
the Postal Service backflowing mail from a delivery unit to the place 
where the DBCS or MLOCR is located. Thus, there is no additional value 
provided to the Postal Service by mailer presortation to carrier route 
or walk-sequence versus a 5-digit presortation for automation-
compatible letter mail at destinating DBCS sites.
    Carrier route rates are based in part on steps avoided by the 
Postal Service during processing. The preparation of carrier route 
packages and trays of barcoded mail addressed to ZIP Code areas at 
which mail is DPS processed on DBCSs does not avoid processing steps. 
The Postal Service will not give reduced rates for mail preparation 
that provides the Postal Service no value. Automation Carrier Route 
rates will therefore not be provided to barcoded carrier route mail at 
those 5-digit ZIP Code areas where DPS sequencing on DBCSs takes place.
    Carrier sequence barcode sorters (CSBCSs) are smaller barcode 
sorting machines that also sequence mail to delivery point. However, 
mail must already be sorted to the carrier route level before it can be 
processed on a CSBCS. Therefore it will still make sense for the Postal 
Service to offer carrier route rates for barcoded mail that it sorts on 
CSBCSs and for mail on carrier routes that are sequenced manually.
    The Postal Service is aware that this limit on automation Carrier 
Route rates will reduce the number of pieces a mailer can qualify for 
automation carrier route rates. It will be up to each mailer to make 
the decision whether the level of discount is worth the expense of 
preparing their particular mail for automation rates. The issue 
concerning the 150-piece minimum for 5-digit and 3-digit automation 
letter rates is further discussed under a separate section on 150-piece 
standards.
    Seven commenters indicated that the list of ZIP Codes ineligible 
for automation Carrier Route rates should be available on RIBBS on a 
permanent basis and that small mailers should not have to subscribe to 
the City/State file as this is an unnecessary and costly burden.
    The Postal Service sees no advantage and only possible confusion in 
providing a list of ZIP Codes where letter-size automation Carrier 
Route rates may be obtained. The argument that small mailers should not 
have to subscribe to the City/State file because this is an unnecessary 
and costly burden is not a good one. To qualify for automation Carrier 
Route rates, mailers will be required to match their addresses using 
CASS-certified software to a current CRIS file or other AIS product 
containing carrier route codes within 90 days prior to the date of 
mailing. The City/State File is automatically provided with all Address 
Information System (AIS) products and must always be used in 
conjunction with these AIS products for accurate matching. Accordingly, 
obtaining information as to which are the permissible ZIP Codes for 
automation Carrier Routes rates can be done at the same time as 
addresses are matched to the applicable CRIS, ZIP+4 or other AIS 
product that contains carrier route codes. In addition, some presort 
software vendors are including a City/State file match as part of the 
presort program. Accordingly, the Postal Service does not believe that 
use of the City/State file for determining the 5-digit ZIP Code areas 
for which automation Carrier Route rates can be obtained will be an 
unnecessary or costly burden to mailers. Furthermore, because software 
processing using the City/State file and an appropriate database 
containing carrier route information is already required for these 
mailings, the Postal Service does not believe that publication of the 
lists on RIBBS would be beneficial.
    Two commenters indicated that the Postal Service should provide an 
equipment deployment schedule to mailers that would give mailers 
sufficient lead time and would also provide the Postal Service a tool 
to make sure that the schedule is followed.
    The Postal Service does not plan to publish an equipment deployment 
schedule. Knowing when and where equipment is scheduled to be shipped 
to a plant will not provide mailers with the information that they are 
seeking. Knowing to which location and when a piece of equipment will 
be shipped does not equate to having a list of ZIP Codes that will be 
processed on that equipment. The 5-digit ZIP Codes that will be 
processed on this equipment are determined locally. ZIP Codes being 
processed on DBCSs may be shifted to processing on CSBCSs as these 
machines are deployed. This in turn will provide the capacity for 
additional ZIP Codes to be processed on DBCSs.

[[Page 10085]]

    Because procedures will be in place to update the City/State file 
on an established bimonthly basis, as to which 5-digit ZIP Codes may 
obtain the automation Carrier Route letter rates, and because mailers 
can easily incorporate this information in their mailings approximately 
every 90 days in connection with the required address matching 
standard, the Postal Service does not deem it appropriate to publicly 
provide its equipment deployment plans.
e. 5-Digit Scheme Sortation for Automation Letters
    Seven commenters responded to the information provided in the 
proposed rule that the Postal Service will not provide 5-digit scheme 
sortation for letters at the time Classification Reform is implemented. 
All seven commenters would like the Postal Service to do so. One 
argument for this action is to avoid the need to install a separate and 
costly software release to implement it at a later date. Three of these 
commenters indicated that having scheme sortation would enable mailers 
to qualify more mail for 5-digit automation rates. Two commenters 
indicated 5-digit scheme sort would reduce costs for both mailers and 
the Postal Service. Two commenters indicated that the volatility of 5-
digit schemes should be no different than the update of the ZIP Codes 
eligible for letter automation Carrier Route rates and suggested a 
workgroup be formed to discuss obstacles. One commenter similarly 
stated that it seems that there are systems in place to handle 
volatility of scheme issues.
    The Postal Service recognizes that 5-digit scheme sortation will 
allow mailers to qualify more mail for 5-digit automation letter rates, 
and agrees that it is in the best interest of mailers and the Postal 
Service to provide these schemes when practical. As indicated in 
comments on automation Carrier Route rates, the Postal Service is 
actively deploying CSBCS and DBCS equipment. ZIP Codes being processed 
on DBCSs may be shifted to processing on CSBCSs as these machines are 
deployed. This in turn will provide the capacity for additional ZIP 
Codes to be processed on DBCSs. This volatility will result in frequent 
changes to 5-digit schemes being used within local plants in the near 
future. Therefore 5-digit scheme sorts will not be implemented at this 
time. Given this, the Postal Service does not believe that it would 
benefit from forming a workgroup to discuss these matters.
f. 3-Digit Scheme Sort for Letters
    Eleven comments were received in response to the provisions for a 
3-digit scheme sort for automation letters set forth in the Proposed 
rule. All 10 commenters interpreted proposed section DMM M810.1.7 as 
requiring all possible 3-digit sorts to be prepared before performing 
3-digit scheme sorts and all disagreed with it. One of these commenters 
indicated that requiring 3-digit sorts prior to scheme sort would drive 
an unacceptable amount of mail into the residual mailstream, both 
decreasing mailer discounts and increasing the amount of raw mail 
processed by USPS receiving units. Several commenters pointed out that 
this information conflicted with the information presented in the 
discussion of comments that scheme sorts could be prepared prior to 
preparing 3-digit sortations. One commenter asked that we reword the 
obvious error in DMM M810.1.7. One commenter stated that if the Postal 
Service does require preparation of 3-digit trays prior to preparing 3-
digit scheme trays, that this is contrary to what was agreed to at the 
Implementation Advisory Group meetings and also defeats the purpose of 
scheme sort by not allowing mailers to merge small quantities of some 
scheme 3-digit areas with larger quantities of others in order to meet 
a single 150-piece minimum quantity standard for the 3-digit scheme.
    The Postal Service acknowledges that the wording of proposed 
section DMM M810.1.7 was misleading. This section was intended to give 
greater flexibility to mailers and not intended to require that 3-digit 
sorts would have had to been prepared prior to preparing 3-digit scheme 
sorts. The Postal Service agrees with mailers that this would be 
counterproductive, and notes the comment indicating that elimination of 
3-digit scheme sort would increase the amount of mail falling into 
basic rate levels of sortation.
    The Postal Service has re-reviewed comments opposed to requiring 
scheme sort that were received in response to the August 30 notice. 
Reasons for opposition were either not given (other than to say it 
would be a barrier to automation) or were based on desires not to 
change current software programs or to be able to use the same software 
sortation program for both automation and nonautomation mail. As 
pointed out to these mailers in the comments section of the proposed 
rule, mailers will be required to change their software because of 
major changes under Classification Reform in the way mail is sorted, 
including different sortation rules for automation mail and 
nonautomation mail.
    Accordingly, the Postal Service has revised the DMM language in 
this final rule to require use of 3-digit scheme sort. A separate 
labeling list in DMM L003 contains the information needed to sort to 3-
digit schemes and to sort non-scheme 3-digit ZIP Codes to direct 3-
digit trays. This will simplify sortation rules to avoid confusion such 
as that encountered with the Proposed rule, and also, as pointed out by 
a commenter, ensure that mail is sorted to the finest extent possible. 
This will also ensure that mailers will qualify the most mail possible 
for 3-digit Automation rates.
g. 5-Digit Scheme Sortation for Automation Flats
    One commenter indicated a desire for implementation of a 5-digit 
scheme sort for automation flats. Five-digit scheme sortation for 
automation flats is not foreseeable in the near future. The Postal 
Service will look at the feasibility of such sortation after it has 
implemented 3-digit scheme sortation for automation flats.
h. 3-Digit Scheme Sort for Flats
    Four comments were received concerning provisions for a 3-digit 
scheme sort for automation flat mailings. All four expressed a desire 
that these schemes be available on the date of implementation because 
it will benefit both the Postal Service and mailers. One commenter also 
pointed out that it would prevent the cost of installing another 
software change if this was implemented on the same date as 
Classification Reform.
    The Postal Service believes that a 3-digit scheme list for flats is 
feasible and has begun work on developing such a sortation scheme. 
However, work will not be completed in time to make this available with 
Classification Reform implementation. The 3-digit scheme sort for flats 
should be available in 1997.
i. Value Added Mailings
    Nine comments were received concerning the Postal Service's 
proposal to include only pieces with postage affixed at an automation 
First-Class or automation Standard Mail rate in mailings presented 
under the value added refund (VAR) procedures in DMM P014.4. All nine 
commenters strongly disagreed with this proposal and stated that the 
original intent of value added refund procedures was to encourage the 
upgrading of Presorted First-Class Mail to barcoded mail. Two 
commenters pointed out that this was never offered for discussion with

[[Page 10086]]
members of the Implementation Advisory Group. One commenter indicated 
that this will reduce the volume of barcoded mail received by the 
Postal Service. One commenter indicated that this standard increases 
the postage risk of presort bureaus because the bureaus will be 
required to affix 5-cent postage to each nonbarcoded piece rather than 
2-cents, and it is unlikely the difference could be recovered from the 
mailer. One commenter indicated that no mailer would be able to remeter 
all the pieces that did not qualify for barcoded rates. Two commenters 
indicated that not all pieces coming into their shop will enter into 
the automation mailstream. One of these further indicated that this 
will cause problems for mailers when doing a handsort on nonautomation 
mail.
    In response to mailer comments, the Postal Service has determined 
to continue to allow mail having postage affixed at the Presorted 
First-Class rate or presorted nonautomation Regular Standard rates, to 
continue to be mailed under the value added refund program.
j. Optimizing 5-Digit Sortation for Automation Letters
    One commenter asked whether mailers would be able to continue to 
optimize 5-digit sortation of Automation letters by moving some but not 
all pieces able to be sorted to 5-digit trays to 3-digit or 3-digit 
scheme trays to bring the total number of pieces sorted to the 3-digit/
scheme destination to the minimum of 150 pieces.
    Because 5-digit sortation is optional for Automation mail, mailers 
are not required to sort all possible pieces to the 5-digit level. 
Accordingly, if a mailer has more than 150 pieces for a 5-digit ZIP 
Code destination and fewer than 150 pieces for a 3-digit or 3-digit 
scheme destination, mailers will be permitted to move pieces that 
potentially could have been sorted to 5-digit destinations to a 3-
digit/scheme level of sortation. Each 5-digit destination would have to 
be left with a minimum of 150 pieces trayed to that destination and 
each 3-digit/scheme destination would also have to have a minimum of 
150 pieces trayed to that destination. Furthermore, the pieces that 
could have been placed in a 5-digit tray but were actually placed in a 
3-digit or 3-digit scheme tray would have to be documented and reported 
as qualifying for 3-digit automation rates.
k. Grouping of Pieces in AADC and Mixed AADC Trays in Automation Letter 
Mailings
    One commenter requested that this standard be dropped because it 
would be impractical to sort mail within AADC and mixed AADC trays into 
3-digit or AADC groups in his MLOCR operation. This commenter indicated 
that if the MLOCR determines on the first pass that there are fewer 
than 150 pieces for a particular 3-digit ZIP Code, then, on the second 
pass groups with fewer than 150 pieces for a 3-digit or 3-digit scheme 
will be aggregated to appropriate AADC or mixed AADC bins. Imposing the 
standard for ZIP Code sortation within the AADC and mixed AADC trays 
would require costly and time-consuming additional presort passes on 
this mail to sort it into 3-digit sequence.
    The Postal Service maintains that for mailers using presort 
software, or even sorting manually, it should not be a burden to 
maintain 3-digit/scheme groupings when placing mail in AADC trays or to 
maintain groupings by AADC within mixed AADC trays. However, the Postal 
Service acknowledges that this could be problematic for some MLOCR 
users depending upon how mail is sorted to bins on the second pass. The 
Postal Service is retaining this standard because it allows mailings to 
be easily matched to standardized documentation during verification, or 
if weigh verification is used, to determine that mail is presorted to 
the finest extent possible. However, the Postal Service will waive this 
standard for MLOCR users who submit standardized documentation.
    In addition, the Postal Service has reviewed its need for pieces 
within mixed AADC trays grouped by AADC to be further subgrouped by 3-
digit ZIP Code within each AADC group. This 3-digit subgrouping would 
also be burdensome to MLOCR users sorting to AADC bins. Also, 
documentation of these 3-digit subgroupings within mixed AADC trays 
could potentially require a mailer to list every 3-digit ZIP Code in 
the country. The Postal Service has determined that the added length to 
required documentation and added sortation complexity is not outweighed 
by the gains in ease of verification. Accordingly, the final 
implementing DMM language will require only grouping by AADCs within 
mixed AADC trays.
l. Numeric ZIP Code Standard for Automation Letter Mail
    One commenter questioned the meaning of proposed DMM E241.1.1c that 
required Regular Periodicals barcoded letter rate mail to ``Bear a 
delivery address that includes the correct numeric ZIP+4 or 5-digit ZIP 
Code (or, only if prepared with a delivery point barcode (DPBC), the 
numeric equivalent to the DPBC).'' This commenter asked whether this 
section meant that the entire DPBC numeric must be printed in front of 
the delivery point barcode as part of the ZIP Code correction process 
allowed MLOCR mailers.
    This standard means only that each piece in an automation mailing 
must bear a numeric ZIP Code in the address and that this ZIP Code can 
be either a 5-digit, ZIP+4, or delivery point numeric ZIP Code at the 
choice of the mailer, with the exception that a delivery point numeric 
code is only permitted on pieces bearing a delivery point barcode.
m. Request for Elimination of Required Tray Sortation Level
    One commenter wanted to begin sortation at the AADC tray level if 
the cost of manual presortation was found to be higher than the savings 
from sorting mail to qualify for 3/5 rates and 3- and 5-digit 
automation rates.
    The presort rates are based on presorting mail to the finest extent 
possible, with the exception that 5-digit trays are optional for 
automation rate letters and for the upgradable presort option for 
nonautomation letters. Accordingly, mailers will be required to prepare 
3-digit trays of automation letter mail any time there are at least 150 
pieces for a 3-digit ZIP Code before preparing AADC trays. Similarly, 
for upgradable Presorted First-Class and upgradable nonautomation 
Regular Standard Mail preparation, 3-digit trays will be required any 
time there are at least 150 pieces for a 3-digit ZIP Code prior to 
preparing AADC trays. For all other mailings, preparation of all 
possible 5-digit trays and 3-digit trays is required prior to preparing 
ADC trays.
n. ACT Tags
    Two comments were received in response to the Postal Service's 
removal of the standard for mailers to apply ACT tags to trays of 
automation First-Class letters. One commenter applauded the decision to 
drop this standard. One commenter pointed out that current DMM 
P014.4.14c requires mailers to sleeve, band, and ACT tag all trays in a 
mailing for which a value added refund (VAR) request will be submitted. 
The commenter requested that the Postal Service remove this standard 
from the DMM.
    The DMM language in this final rule removes the requirement for use 
of ACT tags within VAR mailings. However, mailers participating in 
other special programs such as multiple acceptance times may still be 
required to prepare mail with ACT tags.

[[Page 10087]]


3. Letter Mail

a. Standard To Prepare All Letter Mail in Trays
    Eight commenters responded to the Postal Service's proposal to 
require preparation of all letter mail entered at reformed subclasses 
in trays. Six of the comments were opposed to this standard for 
Enhanced Carrier Route Standard Mail. Two were opposed to it as a 
standard for any letter mail, and one was concerned about the 
availability of trays.
    Three commenters indicated the traying standards would result in 
higher preparation costs for their mailings and loss of cube on 
trailers for drop shipment. One of these commenters indicated that this 
standard and others led to a net loss for his company despite the 
decrease in Automation rates. Two commenters indicated that since the 
attributable costs underlying the proposed Enhanced Carrier Route rates 
were based on flat-sized mail, and therefore letter-size mail is paying 
a higher rate, letter mailers should have the option of traying or 
sacking this mail. One commenter stated that heavy letters, which are 
not automation-compatible due to weight, would be more efficiently 
handled in sacks since more pieces could fit into a sack than in a tray 
resulting in fewer containers for the Postal Service and mailers to 
handle. One commenter stated the Postal Service should be prepared to 
allow optional forms of preparation such as bundles on pallets in the 
event of tray shortages. Another commenter stated that Enhanced Carrier 
Route letter mail should be allowed to be prepared as packages on 
pallets provided such preparation is limited to 5-digit pallets. This 
commenter believed this limited packages on pallets preparation would 
not have a great impact on handling for the Postal Service and would 
alleviate the demand for trays.
    Trays are the most efficient method of containerizing letter mail 
for the Postal Service. Since the Postal Service prepares letter mail 
in trays, it is important that all mailer prepared letter mail be 
prepared in trays. Accordingly, the DMM standards set forth in this 
final rule require that all letter mail, except for Nonprofit Standard 
and Preferred Periodicals, be prepared in trays. It should also be 
clarified that although encouraged, it is not required that Standard or 
Periodicals letters prepared in trays be palletized. Mailers will be 
permitted to bedload trays of letter mail. However, if a mailer wants 
to palletize Standard letter mail, it must be prepared in trays on 
pallets, with one short-time exception. If, as described in the section 
on flat-size mail, the letter-size piece also meets the definition of 
an automation-compatible flat, and a portion of the mailing job is 
mailed at the automation Regular Standard flats rate, until January 1, 
1997, all the pieces in the mailing job may be prepared in packages 
placed directly on pallets provided all pieces pay the applicable rates 
as a flat-size piece and the amount of nonautomation Regular Standard 
mail palletized in this manner does not exceed 10% of the amount of 
Enhanced Carrier Route and Automation Regular Standard mail in the 
mailing job. After January 1, 1997, all letter mail, other than letter 
mail meeting the dimensions of an automation flat and mailed at those 
rates, must be prepared in trays and preferably in trays on pallets.
    The Postal Service acknowledges that trayed mail can sometimes fill 
trailers more quickly than the same amount of mail prepared in sacks, 
and that the number of pieces that can be placed in a trailer might 
affect a mailer's decision as to whether to prepare mail for 
destination entry discounts. The standard to use both 1-foot and 2-foot 
trays will aid in assuring the most efficient use of trailer space 
under the traying environment. As indicated in response to a previous 
comment, the Postal Service recognizes that many mailers will be 
affected by start-up costs for new preparation criteria and possibly 
some additional ongoing costs. However, the Postal Service believes 
that these preparation criteria are necessary to achieve one of the 
goals of Classification Reform of encouraging mail that is most 
efficient for the Postal Service to handle.
    One commenter indicated that they now prepare letter mail in sacks 
in which they mix letter-size and flat-size mail (this mail is a flat 
only because it exceeds \1/4\-inch in thickness). This mailer indicated 
that the standard to tray letters and sack flats will be a problem for 
them causing their mailstream to be split four ways (barcoded vs. 
nonbarcoded and trayed vs. sacked). One commenter stated if they could 
not sack their letters they would like to tray their flats so their 
automated handling systems could handle only one type of equipment. 
Similarly, one commenter requested the ability to place automation 
Standard flats in flats trays since it is not efficient to prepare both 
barcoded tray labels and barcoded sack labels.
    Currently, mailers are not permitted to mix mail of different mail 
processing categories in the same mailing, except for limited 
circumstances under which mailers may combine machinable and irregular 
parcels. The standard for separate mailings for separate mail 
processing categories will continue under Classification Reform. 
Letters and flats are handled under two separate mail processing 
streams and must not be merged together in the same mailing. Under 
Classification Reform, mail exceeding \1/4\ of an inch in thickness and 
classified as a flat will therefore be required to be sacked or 
prepared as packages on pallets. The Postal Service also will not 
permit flat mail to be prepared in letter trays due to the strong 
chance this mail will be directed to letter sorting operations where 
such pieces will not process on mechanized or automation letter sorting 
equipment. As indicated in the last two notices, Standard flats will 
not be permitted to be prepared in flats trays upon implementation of 
Classification Reform. The Postal Service plans to initially limit the 
use of these trays to First-Class flats to allow for a more gradual 
change to a future operating environment in which all flat mail will be 
prepared in trays (except for Standard Mail and Periodicals prepared as 
packages on pallets). Currently, the Postal Service processes First-
Class flats in trays. Generally, flats trays are better handled at 
processing and distribution center facilities and Airmail Facilities 
than sacks which are more conducive to BMC processing. At processing 
and distribution center facilities and at AMFs the Postal Service has 
tray handling systems. When barcoded flat mail is distributed on flat 
sorting machines using the barcode, there are instances were the flat 
mail is dispatched in flat trays to the next handling or destination 
regardless of class. Therefore, it is likely that as part of 
transitioning all classes of flats mail to tray preparation, allowing 
automation-compatible (barcoded) flat mail in trays would be the next 
step, albeit a future step.
b. 150-Piece/Full Tray Standard
    Twenty-two commenters responded to the Postal Service's proposal to 
require 150 pieces per 5-digit ZIP Code or 3-digit ZIP Code destination 
to qualify for 5-digit or 3-digit automation rates, and to be used as 
the basis for sorting to 5-digit, 3-digit and AADC trays. Six of these 
commenters also voiced concern over the standard for 150 pieces per 3-
digit ZIP Code area being the basis for rate qualification and 
sortation for the 3/5-digit nonautomation Regular Standard rates.
    Nine commenters cited specific examples of rate degradation in the 
automation rate categories and four commenters were concerned about 
rate degradation in the 3/5-digit

[[Page 10088]]
nonautomation Regular Standard rate categories. These commenters 
indicated that the 150-piece minimum would cause varying percentages of 
their mail to drop from 5-digit to 3-digit, or from 3-digit to basic 
within the automation rates, or from 3/5-digit to basic in the 
nonautomation Regular Standard rates. Most of these commenters had 
concerns regarding the shift in rate qualifications based on a 
comparison of the qualification criteria under the current 10-piece/50-
piece minimums to qualify for current barcoded rates or the current 
125-piece/15-pound criteria to qualify for current 3/5-digit non-
automation rates and the new 150-piece qualification rules.
    One commenter indicated that because the proposed automation rates 
were slightly lower than current rates the rate impact might balance 
out for the barcoded portion of the mailing, but that since the rates 
for nonbarcoded mail were increasing, it would raise their total 
postage bill. Two commenters stated that the 150-piece rule would have 
a big impact on 5-digit rate qualifications, one indicating all his 
current 5-digit mail will move to the 3-digit qualification level 
resulting in a 3% postage increase. The other indicated that the 150-
piece standard at the 5-digit level would force many mailers into 
moving their mail into the Enhanced Carrier Route subclass since they 
may have many carrier routes that will meet the 10-piece package 
minimum, but very few groups of 150-pieces to a particular 5-digit ZIP 
Code. One commenter indicated that modeling based on the 150-piece 
criteria showed that some of his third-class customers would pay higher 
rates under Classification Reform even though their lists were close to 
100% barcoded. One commenter indicated they will probably discontinue 
preparation of 5-digit sortations in order to be able to continue 
qualifying mail for the 3-digit level, and that this degradation of 
presort seems counter-productive to the Postal Service.
    Other commenters had further concerns over the rate implications 
for mail that could physically fill trays but would not meet the 150-
piece standard. Sixteen commenters in total requested that the Postal 
Service allow mailers two choices to qualify for rates, one based upon 
physically full trays without regard to the number of pieces within 
them, and the other the proposed 150-piece minimum. These commenters 
indicated that enforcement of the 150-piece standard will cause a 
tremendous hardship on the ability of mailers of thicker pieces to 
discount mail. One commenter stated he thought the idea was to fill 
trays. Six commenters further requested that the physically full tray 
option allow full 1-foot trays to qualify for rates without regard to 
number of pieces. Two commenters indicated a physically full tray 
criteria for rates and sortation would promote tray usage efficiencies. 
One commenter stated that the definition of a full tray should be 85% 
full because this is flexible enough to allow mailers to calculate the 
number of pieces needed to fill a tray and would resolve mailer 
consternation over near misses such as 130 pieces filling a tray but 
not being eligible for a rate. Two commenters believed the Postal 
Service should perform market surveys to gather data on mail volume 
characteristics to assess the impact of the 150-piece minimum on its 
customers.
    Some of these commenters provided statistics on the number of 
pieces that would fill trays as requested by the Postal Service in the 
proposed rule. One commenter indicated they had pieces for which 47 to 
65 pieces would fill a 1-foot tray. Five commenters cited pieces that 
would fill two-foot trays ranging from as few as 63 pieces upwards to 
140 pieces per tray. One commenter pointed out that by his estimate 
``heavy'' letter mail, weighing up to 3.4383, which will be permitted 
to qualify for letter-size barcoded rates under Classification Reform, 
would generally average 125 pieces per 2-foot tray. Another commenter 
also noted the Postal Service's provisions for including ``heavy 
weight'' mail in the Automation mailstream and indicated this will 
``probably encourage a growing volume of such letters that fill trays 
in less quantity than lighter weight mail.'' Another commenter pointed 
out that allowing an option to base the qualification and sortation on 
a physically full tray would allow more opportunity for larger size 
pieces that meet both the letter size dimensions and the automated flat 
dimensions to be prepared as a barcoded letter.
    Two commenters also stated that basing the traying criteria on the 
150-piece minimum could result in service degradation since much mail 
now trayed to the 5-digit or 3-digit level will drop down to the AADC 
level. Two other commenters indicated that this drop in sortation level 
will result in more residual or mixed AADC mail to be processed by the 
Postal Service at the local SCF because some mail currently placed in 
AADC trays will not be able to meet the 150-piece standard and will 
subsequently be trayed at the mixed AADC level. These commenters 
questioned whether the Postal Service could handle this volume and 
questioned whether requiring a move from an AADC tray to a mixed AADC 
tray made any sense from a mail processing standpoint.
    One commenter stated that basing rates on the average number of 
pieces that fill a 1-foot tray makes sense only if adequate supplies of 
1-foot trays are available and was concerned that if they were not and 
overflow had to be placed in a 2-foot tray it would result in loss of 
cube space for drop shipment purposes.
    One commenter questioned whether the 150-piece rule applied to 
postcards since 150 postcards equals only about 4 inches of mail.
    One commenter stated his thickness varies and in many instances 150 
pieces will not fit in a single tray. Another indicated that sometimes 
he produces sub-150-piece count trays containing mail of varying 
thicknesses under a manifesting agreement. This commenter indicated 
that because he manifests he cannot arbitrarily move mail around to 
fill trays. One commenter indicated that at only 125-140 pieces per 
tray none of this mail would qualify and the customer would have to 
revise their mailing package which could result in losing sales.
    Several commenters who advocate addition of an ``or full tray'' 
criteria to the qualifications for First-Class and Standard Regular 
Automation mail and to Standard Regular Nonautomation mail, challenged 
the reasons given by the Postal Service in the Proposed rule for 
keeping the standard at 150 pieces. Four commenters indicated that 
having an option to base discounts on full tray should not complicate 
acceptance too much since mailers are currently preparing and 
documenting this mail now under tray-based rules and the Postal Service 
is currently accepting it.
    Five commenters responded to the Postal Service's statement that if 
a physically-full tray qualification criteria were instituted, it would 
be based on a physically full 2-foot tray rather than a one-foot tray. 
These commenters stated this makes no sense since the Postal Service is 
basing the 150-piece rule on a one-foot tray. Three of these commenters 
stated this would be unfair since it would require these mailers to 
make twice as many trays to achieve equal qualification levels.
    One commenter stated that allowing physically full trays to qualify 
without a piece limit does not make sense from a unit (per piece) cost 
or gross profit standpoint in that the Postal Service would have to 
transport up to six trays of thicker Standard Mail for every one tray 
of First-Class Mail, and would receive less revenue for the Standard 
Mail.

[[Page 10089]]

    One mailer of Standard pieces indicated that it appears the 150-
piece standard was designed primarily for MLOCR barcode sorter users. 
This commenter indicated that since 90% of mailers do not use barcode 
sorters, this reasoning should not apply to them. One commenter simply 
stated that the level playing field argument does not make sense.
    Four commenters challenged the Postal Service's argument that the 
150-piece minimum per 3-digit area to be applied to nonautomation 
Regular Standard Mail will not keep qualification levels equivalent to 
today arguing that today mail can qualify based on either 125 pieces or 
15 pounds of mail. Two commenters gave examples wherein their mailings 
currently require only 75 pieces or 80 pieces to meet the 15-pound 
minimum. These mailers indicated that the 150-piece rule will either 
double or increase by 78% the number of pieces they will need to 
qualify for the 3/5 rate. These commenters also pointed out that the 
dual standard of 200 pieces or 50 pounds still applies as the minimum 
quantity standard for each Standard mailing.
    The Postal Service believes that applying a 150-piece minimum to an 
entire 3-digit area to qualify for 3/5 nonautomation Regular Standard 
rates will, on average, result in comparable or better rate 
qualifications when compared to current qualification criteria, even 
for heavier pieces of mail. Currently, the 125-piece/15-pound sacking 
rules are applied separately to 5-digit sacks and to 3-digit sacks. The 
two commenters with pieces meeting the 15 pound requirement with 75 to 
80 pieces of mail to an individual 5-digit or 3-digit sack, would still 
be able to meet the 150-piece requirement per 3-digit area in instances 
where they had an equivalent number of pieces that are now contained in 
two 5-digit sacks for the same 3-digit area, or in other combinations 
of 5-digit and 3-digit sacks for the same 3-digit area. Mailers who 
currently qualify for this rate based on a separate 125-piece 
requirement should, on average, be able to qualify more mail for 3/5 
rates since the 150-piece rule applies to an entire 3-digit area and 
not to individual 5-digit or 3-digit trays.
    The Postal Service would like to point out to the two commenters 
who were concerned that they could not qualify for automation rates 
based on the 150-piece rule because they could not fit 150 pieces in a 
single tray, that the Postal Service has provided for overflow trays 
wherever it has established a 150-piece minimum. This means that if a 
mailer has 150 pieces for a given sortation level, the mail will 
qualify for the rate regardless of the number of trays it takes to tray 
the mail to that sortation level. Likewise, for thinner pieces, if the 
150 piece minimum for a rate level is met, the mail will qualify for 
that rate even if 150 pieces does not fill a tray.
    The rate design approved for automation letters provides reduced 
rates for these mailings. Those rates are based in part on more 
stringent preparation standards that allow more efficient Postal 
Service processing of that mail. Under the Automation Standard Mail (A) 
letter rates, certain mailers could experience a minor increase in 
postage over what they pay today given a number of assumptions, such as 
that all mail not eligible for an automation carrier route rate moves 
to the 3-digit barcoded rate level, and that there are no basic 
automation rate pieces in the mailing. This hypothetical postage 
increase would also be offset by any pieces which the mailer now 
qualifies for basic rates, because there is a significant decrease in 
the basic automation rates under Classification Reform.
    Overall, the Postal Service believes that the automation letter 
discount levels and preparation standards will lower postage bills for 
automation mailings for most mailers of all three classes. Under 
current Barcoded rate mailing rules, a large portion of mail qualifying 
for 5-digit and 3-digit rates is already prepared in full 2-foot trays 
without packages. Because the 150-piece standard is based on a 1-foot 
tray, most mailers should be able to place even more mail in full 5-
digit and 3-digit trays under this standard.
    The 150-piece minimum represents an average of the average number 
of First-Class pieces that can fill three-fourths of a 1-foot tray and 
the average number of Standard letter-size pieces that can fill three-
fourths of a 1-foot tray. This 150-piece average is applied uniformly 
to all letter mail classes for purposes of determining rate 
qualification and for determining when to prepare a particular 
sortation level of tray for automation presort in the final DMM 
standards published in the latter part of this rule. The purpose of the 
standard is to apply rates to tray levels and to eliminate as much as 
possible the preparation of packages for automation mail. Basing the 
standard on an average number of pieces it takes too fill a 1-foot tray 
also provides the opportunity for the Postal Service to increase the 
number of pieces sorted to 5-digit and 3-digit destinations for the 
vast majority of letter mail.
    The Postal Service reiterates that it also desires to apply rates 
on an equal basis to all mailers. The application of the 150-piece rule 
allows mailers of postcard-size or other thin pieces to qualify for 
rates in the same way that thicker pieces can qualify, and in the same 
way as the vast majority of mail in the middle of this spectrum. Since 
the 150-piece standard is based on an average of averages for First-
Class and Standard Mail, the Postal Service believes this standard is 
equitable for both classes of mail. Moreover, the rates being 
implemented are based on cost and volume figures that relied on the 
150-piece criteria.
    The Postal Service recognizes that pieces exist that can fill trays 
with fewer than 150 pieces and that mailers of these pieces may not be 
able to qualify as many pieces for 5-digit and 3-digit automation rates 
under a 150-piece rule as they would under a physically full tray rule. 
However, these mailers will not experience any more of a rate 
degradation than will any other letter mailer at automation rates. 
Testing with heavy letters has shown the Postal Service that heavier 
pieces reduce automation productivity. Thicker pieces also result in 
more tray handlings for the Postal Service, and increased use of cube 
in its transportation systems, as compared to an equal number of 
thinner pieces. It is noted that all but one of the commenters 
requesting application of rates based on physically full trays were 
Standard rate mailers. Standard Mail postage does not increase with 
weight as does First-Class Mail, which means the same minimum piece 
postage will be received regardless of the thickness of the pieces, up 
to the minimum per piece rate weight breakpoint. Accordingly, if the 
Postal Service allowed these thicker pieces to obtain rates at 
quantities of less than 150 pieces, the Postal Service would be 
granting a rate break to mail that will cost it more to process. 
Although the Postal Service has permitted heavier weight pieces to 
qualify for automation rates, we do not feel it is in our best interest 
to encourage mailers to increase the thickness of their pieces in order 
to lower their rate qualification thresholds. One commenter indicated 
he could fill a 1-foot tray with as few as 47 pieces. It would be hard 
to justify to the commenters to this rule who were concerned about rate 
degradation in terms of moving from a 50-piece per 3-digit 
qualification standard to a 150-piece qualification standard, why we 
were allowing a mailer of thicker pieces (and therefore more expensive 
to process) to qualify even fewer pieces

[[Page 10090]]
than are required today (47) for a 3-digit rate, while maintaining that 
they must continue to meet the 150-piece rule to qualify.
    The Postal Service recognizes that the 150-piece sortation rules, 
when applied to pieces that fill 1-foot or 2-foot trays with fewer than 
150 pieces may result in instances where mail ends up not being sorted 
to as fine a level as if a full tray rule were instituted. By the same 
token, the Postal Service will be obtaining finer levels of sortation 
through use of the 150-piece rule from thinner pieces. On average, the 
Postal Service feels that the 150-piece rule will provide a good level 
of sortation for most mail. In the past the Postal Service has 
attempted to fine-tune mailing standards and rates to meet the needs of 
a variety of unusual mailpieces that constitute a small percentage of 
the mailstream. The result was a Domestic Mail Manual and rate schedule 
that led to public outcries for ``simpler rules.'' As indicated in past 
notices and proposals, another benefit to having only one set of 
preparation criteria is simplicity. Currently the Postal Service 
provides three different types of sortation for barcoded letter mail. 
It strongly wants to maintain only one type of preparation under 
Classification Reform. Classification Reform to a great extent is about 
simpler preparation rules, and the Postal Service has determined to 
keep it that way. Therefore, the final rules in this notice retain the 
150-piece rules and do not permit qualification for rates based on an 
indeterminate number of pieces that would produce a physically full 
tray.
c. Overflow Trays
    One commenter disagreed with the Postal Service's proposal to 
require use of overflow trays in those instances where the 150-piece 
rule is applied. The Postal Service is retaining this rule in order to 
ensure that mail is sorted to the finest extent possible.
d. Use of both 1-foot and 2-foot trays
    Fifteen commenters responded to the Postal Service's proposal to 
require letter-size mailings to be prepared in a combination of 1-foot 
and 2-foot trays in a manner that will result in the fewest number of 
trays. Seven commenters stated that use of two sizes of tray should be 
left to the mailer's discretion in that it will be in the mailer's 
interest as well to use the fewest number of trays. Three of these 
commenters indicated that the Postal Service could re-evaluate making 
this a standard at a later date if it finds mailers are not preparing 
mail in an economical fashion. Five commenters had concerns about 
pallet preparation in that use of two sizes of tray could lead to 
unstable shipments. One of these commenters requested that all 1-foot 
or all 2-foot trays be permitted for purposes of building pallets. Five 
commenters were opposed to this standard stating it will create a very 
difficult manufacturing operation to manage and will cause significant 
production costs. One of these commenters indicated it will eliminate 
his ability to automate the sleeving and banding process and doubles 
the capital and space needed. Two commenters were concerned whether the 
Postal Service will have adequate supplies of the different sizes of 
trays. One of these commenters was particularly concerned about the 
availability of extended mail trays. This mailer indicated difficulties 
in obtaining adequate quantities of extended mail trays now and asked 
the Postal Service to indicate the steps it is taking to ensure 
adequate supplies since moving mail from extended mail trays to 
standard letter trays jeopardizes their mail production strategy. 
Another commenter similarly stated that shortages of 1-foot trays that 
would result in mailers having to use only 2-foot trays in their 
mailings would result in problems in determining drop shipment loads 
and would increase cube space needed on transportation. One commenter 
stated required use of both 1-foot and 2-foot trays will be a barrier 
to mailers preparing Automation mail.
    The 150-piece minimum quantity to qualify for automation letter 
rates is based on the preparation of average size pieces in a 1-foot 
tray in order to make it easier for mailers to qualify for those rates, 
and to provide more full trays to direct destinations thereby lessening 
any loss of presort to the Postal Service. In order to increase the 
number of direct trays to sortation destinations for all letter 
mailings, the proposed DMM language would require use of both 1-foot 
and 2-foot trays for all mailings of letter-size pieces in all reformed 
subclasses. The Postal Service does not want to potentially double its 
number of tray handlings by allowing a mailing to be prepared entirely 
in 1-foot trays. Also, the Postal Service does not want to increase 
transportation costs by shipping an increased number of less-than-full 
2-foot trays. Accordingly, the standard to use both 1-foot and 2-foot 
trays where appropriate is considered necessary by the Postal Service. 
The final DMM language contained herein requires mailers to fill as 
many 2-foot trays as possible before filling 1-foot trays.
    The Postal Service recognizes that this standard will cause mailers 
to make major changes to their production lines and to maintain a 
supply of both 1-foot and 2-foot trays. It is believed that presort 
software developed to accommodate the Classification Reform presort 
structure will include mail documentation that provides information as 
to what size tray mail should be placed in as well as indicating where 
the tray breaks are. If this type of software is used it may not be 
necessary to create two separate production lines for the different 
tray sizes. The Postal Service is anticipating the increased need for 
both sizes of trays and has purchased additional supplies. In addition 
the Postal Service is continuing to review the need to purchase more 
trays. If local shortages of a particular size tray develop, mailers 
will have to tray using the tray size that the Postal Service provides. 
For example, if only 2-foot trays are provided, all mail would be 
placed in 2-foot trays. If only 1-foot trays are provided, the entire 
mailing would be placed in 1-foot trays. This may require working out 
individual mailing solutions locally.
    Mailers must use their own judgment when building pallets of trays 
containing both sizes of trays. The elimination of the proposal to 
require separate layers of trays on pallets for different mailings 
should help mailers to build stable pallets. An exception is that 
pieces at automation rates must not be combined with mail at 
nonautomation rates on 5-digit pallets. The standard to place 
destination delivery unit trays on the top of the pallet has also been 
eliminated. Accordingly, mailers may build pallets of trays based 
solely on the weight of the trays (heavier trays must be on the bottom) 
and the pallet destination.
    Since mailers will be required to use a combination of 1-foot and 
2-foot trays for all letter mail, including presorted nonautomation 
mailings, the Postal Service does not agree that this standard will be 
a barrier to automation.
e. Tray Sleeving and Strapping
    Six commenters responded to the Postal Service's proposal to 
require that all trays used to prepare letter-size mailings be both 
sleeved and strapped with limited exceptions for mail destined for the 
service area of the entry post office and an exception to strapping 
only for trays contained on 5-digit, 3-digit, and SCF pallets. Two 
commenters requested that the Postal Service eliminate this standard 
because it requires a private equipment purchase on the part of 
mailer's and an increase

[[Page 10091]]
in their processing burdens. These commenters pointed out that the 
Postal Service already has adequate capacity to strap all outgoing 
trays, and one suggested that the Postal Service use stretchwrapped 
pallets in its outgoing processing of mail to decrease its own need for 
strapped trays. Two commenters requested that the Postal Service delay 
implementation of this standard to allow mailers time to purchase and 
install strapping equipment, one suggesting at least a 6-month delay. 
Two commenters pointed out a discrepancy between the language in the 
comments section of page 66595, section p, proposed DMM M045.5.5 (which 
implied mail on any stretchwrapped pallet was exempt from strapping 
standards), and the lack of changes to P014.4.14c which requires all 
trayed mail submitted under value added refund procedures be both 
sleeved and strapped.
    The Postal Service will require sleeving and strapping of all trays 
of mail prepared under all reformed subclasses, with the exception that 
mail entered within the service area of an SCF which is for delivery 
within the SCF area may obtain a local exception to the tray strapping 
standard, and that strapping of individual trays placed on 
stretchwrapped 5-digit, 3-digit, and SCF pallets will not be required. 
All trays in all circumstances will be required to be sleeved. Mail 
transported without first being sleeved is susceptible to spillage and 
damage during transportation and handling. This is especially true for 
automation mail in which full trays will not contain banded packages. A 
strap around the tray is also necessary to maintain the integrity of 
the tray and its contents during transportation and handling. For 
example, because trays of mail sorted in a BMC move on belts and down 
chutes during mechanized distribution, sleeves that are not strapped to 
trays could slide off and the contents of the tray could spill. Trays 
transported by air are handled in many different ways and also need to 
be strapped to maintain their integrity. Because local mail is not 
subject to the same type or amount of transportation as other mail, an 
exception may be made for the strapping of this mail, however, it has 
been determined that sleeving will still be necessary.
    For palletized mailings, sleeving will be required for all trays, 
but strapping will be required only for trays placed on ADC, ASF, BMC, 
mixed ADC, and Mixed BMC pallets. These pallets must be broken down and 
the trays further transported before reaching the local SCF or plant 
and accordingly must be strapped to maintain their integrity during 
handling and transportation.
    The discrepancies in the DMM language contained in the proposed 
rule have been corrected in this final rule to reflect the above 
policy, which will apply to all mail including that prepared under 
value added refund provisions.
    The Postal Service will require sleeving and strapping effective 
July 1, 1996. A major element of the Postal Service's Classification 
Reform initiative is to remove costs from the postal processing system, 
thereby enabling rates to remain stable for longer periods of time. 
Accordingly, the Postal Service believes implementation of this 
standard at the time Classification Reform is appropriate.
f. Elimination of 3-Digit Carrier Routes Trays.
    One commenter stated that the Postal Service may be seriously 
underestimating the number of 1-bundle trays that will be created by 
elimination of 3-digit trays for barcoded carrier route mail. This 
mailer indicated that he currently prepares a lot of 3-digit trays 
which each contain only a few carrier route bundles for different 5-
digit areas. He indicated that almost every bundle currently in 3-digit 
carrier routes trays will be required to be prepared in a separate 1-
bundle, 1-foot tray upon implementation of Classification Reform. He 
believes these trays will be a problem to both mailers and the Postal 
Service in terms of the increase in the number of trays needed to 
prepare a mailing, and the resultant increase in the amount of air 
being shipped in those trays which will impact drop shipment efforts.
    The Postal Service recognizes that elimination of 3-digit carrier 
routes trays will increase the total number of trays needed to prepare 
the carrier route portion of automation First-Class mailings and to 
prepare Enhanced Carrier Route mailings. However, preparation of 
carrier route mail in direct carrier route or 5-digit carrier routes 
trays will eliminate the breakdown and distribution of 3-digit carrier 
routes trays at the plant level. This means trays can be routed 
directly to the appropriate piece of automated equipment, or to the 
postal facility where the carriers are located, without costly and time 
consuming resorting of the mail in 3-digit trays. The use of 1-foot 
trays for those 5-digit areas having only a few or one carrier route 
package should eliminate a lot of the air being shipped both by mailers 
and the Postal Service. Mailers will need to make their own cost-
benefit analyses concerning whether drop shipment will be beneficial to 
them. The Postal Service has increased its procurement of 1-foot trays 
in order to meet the anticipated demand under Classification Reform.
g. Banding Material for Package Preparation
    Five commenters responded to the proposed standards that would 
prohibit use of string or plastic strapping for preparation of packages 
in less-than-full trays of automation mailings, and would require use 
of separator cards in lieu of any banding material in full 5-digit 
carrier routes trays within automation First-Class and automation 
Enhanced Carrier Route mailings. Five commenters were opposed to the 
prohibition of string or plastic banding on automation mail, and one 
other to the prohibition against plastic strapping only. One commenter 
indicted it would cost him $150,000 to replace tying machines, and that 
he can't use rubber bands because of carpal tunnel syndrome complaints 
from his employees. One commenter was concerned primarily because it is 
problematic to have several different standards for different mailings 
within the same mailing job, such as in some places it is required to 
use separator cards, in some instances they are prohibited, sometimes 
rubber bands are required, and sometimes string and plastic strapping 
is required. This commenter would like the standards to be consistent 
for all mailings since having different standards causes mailer 
operational problems in terms of supply inventories, training, 
processing, and quality checking. One commenter indicated that the 
rules are not clear and appear to be contradictory in different places 
in the proposed DMM language.
    The standards for preparing packages or group separations for 
First-Class, Regular Standard, Enhanced Carrier Route Standard, and 
Regular Periodicals are contained in DMM M020.3.0. The Postal Service 
has determined to continue to allow packages in automation related 
mailings (automation First-Class, automation Regular Standard, 
automation Enhanced Carrier Route Standard, and automation Regular 
Periodicals, as well as upgradable Presorted First-Class and upgradable 
nonautomation Regular Standard Mail), to be prepared using either 
rubber bands, elastic strapping, plastic strapping, or string. However, 
preparation using rubber bands or elastic strapping is optimal for 
efficient Postal Service handling of the aforementioned automation-
related mailings because this material is quick and easy to remove and 
eliminates the

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debris created by removal of string and plastic strapping. Accordingly, 
the Postal Service encourages mailers to prepare letter-size mailings 
using rubber bands or elastic strapping under Classification Reform and 
plans at some future point to institute this standard for automation 
and upgradable mailings. The Postal Service will work with mailers on 
the timing of making rubber bands a requirement.
    In certain locations the Postal Service may take 5-digit carrier 
routes trays and sort them using automated equipment to individual 
carrier routes for subsequent DPS sequencing on CSBCS equipment. 
Accordingly, the Postal Service is retaining the standard to prepare 
full 5-digit carrier routes trays within automation mailings with 
separator cards. However banding material must be used in all other 
instances where packaging is required, (less-than-full trays or any 
trays consisting entirely of postcard-size pieces within automation and 
upgradable mailings, and all packages prepared for presorted 
nonautomation letters and all presorted flats).
h. Machinability (Automation-Compatible) Standards
    One commenter requested that the Postal Service relax its 
machinability standards (as they relate to automation mailings) to 
allow more mailers to prepare automation mail.
    The Postal Service cannot spontaneously relax machinability 
standards. The current standards are based on the type of mail that is 
capable of being processed on currently available Postal Service MLOCR 
and barcode sorting equipment.
i. Standards for Upgradable Mail
    One commenter would like to see handwritten mail permitted to be 
prepared under the upgradable option for nonautomation Presorted First-
Class and nonautomation Regular Standard Mail.
    The upgradable option for nonautomation mail is for mail that has a 
high likelihood of being read by current optical character readers 
(OCRs). The Postal Service does not at this time wish to extend the 
upgradable preparation option to mail that would require more costly 
RBCS processing.

4. Flat Mail

a. Palletization Sortation Standards
    Three comments were received in regard to the new palletization 
make-up standards that: contained revised levels of pallet sortation, 
and added a standard that all mail presented on pallets be sorted to 
pallets to the finest extent possible. One commenter indicated support 
of the standard allowing 10% of the total pallets to be working pallets 
since it will eliminate most sacks and thereby streamline production 
lines and improve the quality of mailpieces. One commenter requested 
clarification as to whether automation Standard trayed letter mail 
would be required to be sorted to SCF and BMC pallets, and if so would 
they still be eligible for destination BMC/SCF discounts. One commenter 
stated the new preparation standards are a rate increase without a rate 
case due to the need for new software and more labor by mailers.
    If presented to the Postal Service on pallets, trayed automation 
Standard letter mail will be required to be sorted to SCF and BMC 
pallets (and ASF pallets if drop shipment rates are claimed at ASFs). 
Up to 10% of the mail on these pallets could be submitted on Mixed BMC 
pallets. Trayed mail on SCF pallets will be eligible for SCF discounts 
if entered at the SCF facility, and carrier route, 5-digit carrier 
routes, 5-digit, 3-digit and ADC or AADC trays for destinations within 
the service area of the BMC or ASF will be eligible for BMC discounts 
if entered at the BMC or ASF. Determination of BMC rate eligibility for 
all mail in AADC trays and for all mail in ADC trays, sacks, or 
packages placed on pallets, will be made based upon whether the ADC or 
AADC 3-digit ZIP Code that appears on the top line of the tray or sack 
label in DMM L004 (or the ZIP Code assigned to the ADC in DMM L004 for 
the package) is within the BMC service area.
    As pointed out in previous notices, although there is a standard to 
prepare letter-size mail in trays, there is no standard to place those 
trays on pallets. However, if mailers choose to palletize trays of 
letter-size mail, the trays must be palletized according to the 
sortation standards set forth in DMM M040.
    The standard to sort all mail placed on pallets rather than 
submitting unsorted mail on working pallets is necessary for efficient 
Postal Service operations. Receiving unsorted mail on a pallet means 
that the pallet must be staged somewhere in the plant where it must be 
broken down, sorted to other containers, and dispatched. When large 
quantities of unsorted pallets are received at a plant, the facility 
can run out of space to place the pallets that are waiting to be broken 
down and sorted. In most instances it is more efficient to unload the 
contents of bedloaded trucks at a BMC directly into the sortation 
stream than it is to move a working pallet to a staging area, break it 
down, and then direct it to a sorting operation. The purpose of 
palletization of mail is to allow the Postal Service to cross-dock 
entire pallet loads of mail to particular destinations eliminating the 
need to break down and sort all the pallets at the entry postal 
facility. Accordingly the Postal Service is retaining the standard that 
mail presented on pallets must be sorted to required destinations with 
a minor portion (no more than 10%) received on working pallets.
b. Mail Meeting the Standards for Both Letters and Automation-
Compatible Flats
    Eight commenters had concerns regarding the preparation of 
mailpieces that meet the size standards for a letter size piece as well 
as the size standards for an automation flat-size piece.
    Six commenters stated that mailers should have the option of 
preparing their mail in a manner associated with the rates they are 
paying. That is, if a mailer chooses to pay rates associated with flat-
size mail, the mailer should be able to prepare this mail as a flat in 
sacks, or as packages on pallets; and conversely, if a mailer chooses 
to pay letter rates the mail must prepared in trays or preferably in 
trays on pallets.
    The Postal Service disagrees with this position. The Postal Service 
processes mail in different mailstreams based on the mail processing 
category of the mailpiece, i.e., letter, flat, automation flat, 
machinable parcel, irregular parcel or outside parcel. The mail 
processing categories are defined by the size dimensions or size and 
weight and other physical characteristics of the mailpieces as defined 
in DMM C050. Therefore, even if a letter pays a flat rate it would be 
processed by the Postal Service as a letter. The Postal Service 
therefore wants letter-size mail prepared in trays and the trays 
labeled to show they contain letter-size pieces so they can be directed 
to the appropriate letter processing stream. Letter and nonletter rates 
are developed on the basis that mail meeting the letter-size 
characteristics is processed as letters and mail meeting the flat-size 
or parcel characteristics is processed as flats or parcels as 
appropriate. Accordingly, the DMM standards reflected in this notice 
will require mail meeting the letter-size dimensions in DMM C050 to be 
prepared as a letter. The one anomaly in this rule is the automation 
flats category. Flat sorting machines can handle some smaller pieces 
that overlap into the letter-size processing category, and in the 
interest of encouraging preparation of barcoded flat mail, the Postal 
Service allowed this smaller mail to qualify for the barcoded flat 
rates. Accordingly the Postal Service will

[[Page 10093]]
continue to allow letter-size mail that also meets the size dimensions 
for an automation flat to be prepared according to the preparation 
standards for a flat, but only when such pieces are presented as part 
of an automation flats mailing.
    In the proposed rule, the Postal Service proposed an accommodation 
for mailers of pieces that meet both the letter and Automation flats 
dimensions if they prepare that mail as packages on pallets. Under this 
accommodation, the Postal Service proposed that when a portion of the 
mailing job consisted of such pieces and was prepared as an automation 
flats mailing of packages on pallets, the Postal Service would allow 
the entire mailing job, which could include Enhanced Carrier Route and 
nonautomation Regular Standard mail, to be prepared as packages on 
pallets if no more than 10% of the total number of pieces in the 
mailing job were claimed at nonautomation Regular rates and provided 
the pieces claimed at the nonautomation Regular rates were paid at the 
non-letter rates. This was in recognition that mailers who prepare mail 
in packages on pallets would have more efficient mail preparation 
operations if allowed to prepare an entire mailing job in the same 
manner. Seven commenters disagreed with the 10 percent limit on the 
Regular mail (now nonautomation Regular Standard Mail). Six of these 
commenters reiterated the reason above, that if they are paying flats 
rates they should be able to prepare their mail as a flat without 
limit. One commenter indicated he didn't understand the rationale, 
especially if pieces over 3 ounces are not run on automated letter 
sorting equipment. One commenter stated that the 10% limit should be 
increased to 15% to accommodate the mail that previously could have 
been prepared as part of a barcoded flat mailing under the 85/15 
barcoding rules. One commenter stated that if there was no limit on 
carrier route mail there should be no limit on the amount of Regular 
mail prepared in the mailing job. This commenter further indicated that 
there appears to be insufficient justification in terms of Postal 
Service benefits to offset complications in mailer operations.
    At the time the Postal Service proposed this accommodation to 
mailers preparing packages on pallets, it was working under the terms 
of its proposal to the PRC in which the Enhanced Carrier Route subclass 
did not contain separate rates for letter and flat mail. The Postal 
Service determined that it would overlook any additional preparation 
costs it incurred by not having the letter-size carrier route mail 
prepared in trays since there was no separate letter rate. However, the 
PRCs recommended decision approved by the Governors includes separate 
letter and flat rates for Enhanced Carrier Route mail. This change in 
the rate structure, together with fairness issues related to giving an 
exception for palletized mail but not for sacked mail, has caused the 
Postal Service to rethink its proposed accommodation for palletized 
mail. As reiterated in the beginning of this section and elsewhere in 
the comments concerning letters, the Postal Service is handling all 
letter mail in trays in its internal operations and for the sake of 
processing category recognition and efficiency in handling, wants all 
letter mail presented for entry by mailers to be prepared in letter 
trays. The Postal Service believes that preparation of letter-size 
Enhanced Carrier Route mail as well as nonautomation Regular letter 
mail in trays, and preferably in trays on pallets, is the most 
efficient preparation for its operations. The Postal Service will 
therefore not offer the exception set forth in the proposed rule, for 
palletized mailing jobs that contain a portion prepared as an 
automation flats mailing indefinitely. That exception will be 
terminated on January 1, 1997. At that time the Postal Service will 
provide that, for mailing jobs consisting of mailpieces meeting the 
definitions of both a letter and an automation flat, only the portion 
submitted as an automation Regular Standard flats mailing may be 
prepared as a flat. Letter-size pieces entered as Enhanced Carrier 
route and nonautomation Regular mailings must be prepared according to 
their letter-size classification as trayed mailings, and preferably as 
trays on pallets.
c. Physically Full Flats Trays
    One comment was received that supported the Postal Services 
proposed definition of a full flats tray as one that is physically 
full. This is further defined in DMM M011.1.3 as a minimum of a single 
stack of mail lying flat on the bottom of the tray and filling the tray 
to the bottom of the handholds. When there is additional mail for the 
same tray destination and additional pieces can be stacked in the tray, 
it must be further filled to capacity.

5. Periodicals

    Two mailers submitted comments concerning the proposed Publications 
Service subclass standard. As the Publications Service subclass was not 
recommended by the PRC, these comments will not be addressed.

6. Addressing

a. Move Updates
    Eighteen comments were received concerning the proposal to require 
automation First-Class and Presorted First-Class mailers to update the 
addresses of their customers who have moved within 6 months of the 
mailing date. One commenter supported the proposal. One commenter 
stated there was no support for the proposal within the mailing 
industry.
    The Postal Service believes the methods currently available to 
provide updated address information to customers offer a wide range of 
options that can meet the needs of mailers at reasonable cost. For 
example:
    Use of the endorsement ``Address Correction Requested'' means the 
mailpiece will be returned to the sender with the new address 
information affixed. This service is provided at No Additional Charge 
to the mailing customer. The mailer may then update the address 
information, use a new envelope and mail the piece to the new address.
    Use of the endorsement ``Forwarding and Address Correction 
Requested'' means the mailpiece is forwarded to the new location and 
the Postal Service sends a hard copy notice to the mailer with the new 
address information. This notice can be used to update the mailers 
address and costs $0.50 for each notice.
    Use of Address Change Service provides the mailer with an 
electronic notice of new address information instead of a hard copy 
notice. Electronic notices cost $0.20 and can be obtained on a variety 
of electronic media. Mailers may determine the frequency with which 
they use the ACS endorsement and participant code so long as the mailer 
can certify that each address in a First-Class mailing has been updated 
for customer moves within 6 months prior to the date of the mailing.
    Use of National Change of Address (NCOA) processing service can 
update mailers' address lists with corrected address information prior 
to a mailing. Mailers determine how frequently they process their 
address lists.
    Use of these move update methods on mailings in other classes would 
meet the standard for the addresses in the mailing list and qualify 
them for access to automation First-Class or Presorted First-Class 
rates. Any new addresses added to the mailing list would be ``move 
updated'' during the next scheduled processing of the addresses.
    One commenter stated that they are unable to use the current 
methods and two said they were too costly. The Postal Service incurs 
costs to rehandle

[[Page 10094]]
undeliverable-as-addressed mail and also incurs service delays when 
mail must be redirected to a new location. It is in the best interests 
of the Postal Service and mailers to improve deliverability and reduce 
costs. The options cited above provide flexibility to mailers in 
meeting the proposed standard, including the ``no fee'' Address 
Correction Requested endorsement.
    Three commenters asked that implementation of the standard be 
postponed to allow time to adjust and obtain move updates. The Postal 
Service believes this proposal has merit. The Postal Service recognizes 
that many mailers will need to revise their addressing systems to 
accommodate move updating. Some will have to learn to use electronic 
update systems. Others will need to use up stocks of envelopes that do 
not bear an endorsement. Some mailers may need to experiment with 
several options, such as the impact of the two different endorsements, 
to determine which makes the best business sense for their operations. 
The Postal Service also wants to avoid creating a semi-annual 
``crunch'' of demand for NCOA and ACS services that might occur if Move 
Update was implemented at the same time as the rate and classification 
changes resulting from Classification Reform. Thus, the Postal Service 
will begin the move update address qualification process at the time of 
Classification Reform implementation, but will not condition the 
eligibility of automation First-Class and Presorted First-Class 
mailings on complete move update qualification until January 1, 1997. 
This ``ramp up'' compliance period should give all concerned customers 
more than enough time to decide on the update method to use, obtain 
NCOA matching services if appropriate, implement internal system 
changes to accept electronic move update information and work with 
their internal customers or presort customers to obtain full 
compliance.
    Several commenters expressed concern about the availability of 
service from NCOA licensees. The Postal Service believes the existing 
group of licensees has the capacity to continue to provide their 
services to mailers within the terms of the license (process and return 
address files within 7 business days of receipt.) If Postal Service 
determines that a legitimate need exists, it will increase the number 
of licensees.
    Several commenters also asked that implementation be postponed 
indefinitely until other methods to do move updating, such as the 
Multiline Forwarding System, have been approved. The Postal Service 
does not believe that such an open-ended delay is warranted, given the 
wide range of current options. Excellent progress has been made towards 
the implementation of the Multiline Forwarding System, now known as 
FASTFORWARDsm. The Postal Service expects the implementation process to 
continue on schedule with certification of the operating systems to 
occur during the summer of 1996. Mailers who choose this option will be 
able to meet the Move Update requirement well before the end of the 
``ramp up'' period. The Postal Service plans to continue to work with 
MLOCR users through the Mailers Technical Advisory Committee and the 
Multiline Users Group on the development of the FASTFORWARDsm. As 
marketplace demands create a need, the Postal Service will also 
consider expanding the range of options in the existing services. For 
example, this might include adding additional notification options in 
Address Change Service beyond the current ones available.
    Three commenters inquired if their in house address correction 
centers, to which they have devoted significant resources, might be 
certified as meeting the standard. For those mailers who believe their 
lists are up to date, the use of the ``Address Correction Requested'' 
endorsement should have little or no impact on their business practices 
because they are mailing to the most current address for their 
customer. The simple and straightforward use of the endorsement would 
meet the proposed standard with no difficulty, need only be applied to 
all addresses on the list at least once within the 6 months prior to 
the date of mailing and expenditures would be limited to the costs 
associated with preprinting the endorsement on mailing envelopes. The 
current endorsement options would be an effective approach to meeting 
the proposed standard for lists which are well maintained by special 
mailer move correction processes. The Postal Service will discuss 
additional alternatives with members of the Mailers Technical Advisory 
Committee and other industry representatives.
    Three other commenters inquired whether a mailer was required to 
use the information provided from postal address correction processes 
and apply it immediately to their address lists. They asked if the 
notification could serve as a trigger to the company to initiate an 
inquiry with the customer about correcting address information. Four 
commenters indicated that various state and federal government agencies 
feel they are prohibited from using Postal Service provided 
corrections. In most cases, mailers are expected to update their 
mailing addresses promptly. However the Postal Service recognizes that 
in some industries there may be legally mandated limits on the address 
that can be used in certain customer communications. For example, one 
commenter noted that in a number of states, notices of shareholder 
meetings must be sent to the address ``in the corporation records.'' 
Given the concerns expressed by these mailers, the Postal Service has 
decided that in circumstances where clearly demonstrated legal 
constraints limit a mailer from using address changes provided by the 
Postal Service, an individually approved alternative process will be 
acceptable to meet the move update standard. Alternative process 
approval would be granted on a case by case basis and the legal 
limitation would need to be clearly identified. In this process, 
mailers would receive address change information from the Postal 
Service in any of the currently prescribed manners. This would be 
followed by a prompt mailer initiated direct mail contact with the 
customer requesting a signed verification of the address change. For 
example, the mailer could provide a preprinted barcoded Business Reply 
Card which the customer could sign and return. Address information 
could then be updated in the mailer's records prior to the next mailing 
cycle.
b. Carrier Route Sequencing Standards
    16 comments were received on the proposed standards to sequence 
basic Enhanced Carrier Route Standard mail and Publications Service 
Periodicals carrier route mail. The proposal required update of 
sequence information to be done through any of the established 
sequencing methods or, for basic carrier route rates, use of the newly 
developed Line-of-Travel (LOT) product.
    Two commenters said they would be unable to sequence their 
mailings. Two others asked that the High Density rate category in 
Enhanced Carrier Route Standard Mail be allowed to use line of travel 
sequence rather than exact walk sequence.
    The Domestic Mail Classification Schedule which was recommended by 
the PRC and approved by the Governors specifies that High Density 
Enhanced Carrier Route Standard and High Density Regular Periodicals 
mailings must be prepared in walk sequence, and this requirement is 
incorporated in the DMM final rules. The approved DMCS provides that 
basic nonautomation Enhanced Carrier Route mail and basic automation 
Enhanced Carrier Route

[[Page 10095]]
mail be sequenced as prescribed by the Postal Service. The DMM language 
in this final rule prescribes that nonautomation basic Enhanced Carrier 
Route must be sequenced using either LOT or walk sequence. Sequencing 
will not be required for automation Enhanced Carrier Route letters. 
Furthermore, the approved DMCS does not specify sequencing for basic 
carrier route Regular Periodicals. Accordingly, the Postal Service has 
determined that sequencing will not be required for those rates in the 
final DMM standards.
    Four commenters asked that, where sequencing is required, the 
Postal Service accept either ascending or descending order for 
sequencing. Commenters added that the turns in production runs may vary 
and it would be difficult to accurately predict which direction may 
result. One also speculated that the efficiencies gained would be the 
same going from end to beginning of the route as they would from 
beginning to end of the route. The Postal Service will identify mailers 
whose mailings are frequently in reverse order and work with them to 
ensure mailings are presented in the proper order.
    Eight comments were received concerning the availability of the LOT 
product. LOT has been available for subscription since July 1995. 
Implementation of the sequencing standards will occur with the 
implementation date for Classification Reform. Mailers who are 
interested in obtaining the Line-of-Travel product should contact the 
National Customer Support Center at 1-800-238-3150 for subscription 
information. Continuing updates of LOT sequence information will occur 
with the same frequency that carrier route codes are updated.
c. Five Digit ZIP Code Verification
    The Postal Service believes that accurate ZIP Codes are vital to 
ensuring consistent, timely delivery service. Moreover, the use of a 
correct ZIP Code is currently a standard for all presorted mail. Those 
who are unwilling to verify that the ZIP Codes they apply to mailpieces 
will not be allowed access to discounted postage rates that are based 
on ZIP Code presortation.
    One commenter asked if the results of CASS processing would verify 
ZIP Code accuracy. If the mailer uses certified software and updates 
the ZIP Code information using the software, this would be considered a 
acceptable verification method. One commenter said the standard should 
not be implemented because the Postal Service has received the revenue 
and can just discard Standard rate mail if it is undeliverable. The 
Postal Service disagrees. The Postal Service would still incur all the 
transportation and processing costs in addition to waste disposal fees.
    Two commenters asked for a longer implementation period. Mailers 
will be expected to identify the method used to verify the ZIP Code 
information and sign a certification of verification attached to the 
postage statement. The Postal Service has decided to allow mailers 3 
months from the date of Classification Reform implementation to verify 
the accuracy of their 5-digit ZIP Code information. The Postal Service 
believes this October 1, 1996, date provides adequate time in which to 
verify ZIP Code information. One commenter asked who would be 
responsible for ensuring ZIP Code accuracy. The person in control of 
the address would be responsible, however, others may offer services 
which would provide the verification. For example, an MLOCR could be 
used to apply a barcode representing the correct ZIP Code or a service 
bureau may offer a verification service as a part of their service 
line.
d. Carrier Route Updates
    Five comments were received about the proposal to update carrier 
route information within 90 days of the date of mailing. Two comments 
suggested that the coding date should be 120 days, not 90 and one 
suggested 180 days. Two commenters questioned if the important date was 
the date of coding or the date of the AIS product being used. It 
appears that some commenters misinterpreted the chart which was 
included in the last Federal Register concerning this issue. The chart 
indicated all of the possibilities when data products would be valid 
for use, not how long the codes assigned by using the product would be 
valid. Carrier route assignments are more frequently changed to 
accommodate the operational needs of the Postal Service to balance a 
carrier's workload. Thus, the Postal Service believes the 90 day coding 
standard is reasonable. However, it is not the Postal Service's intent 
to require mailers to update their carrier route codes if no more 
current source of information is available. The Postal Service believes 
the most current data available should be used in assigning carrier 
route codes. If new data files are not available, mailers should 
continue to use the existing route assignments until such time as new 
AIS products have been released by the Postal Service.
e. Address Information System Product Cycle Changes
    Eight comments were received concerning the proposed increase in 
the frequency of required updates to AIS products. One commenter 
suggested the Postal Service publish a separate Federal Register notice 
to ensure that all affected parties are aware of the proposed changes. 
Three stated that it is difficult to implement the ZIP+4 product 
releases within the required 45 day window and that to add CRIS within 
the same window would be impossible. Another commenter added that they 
have experienced difficulty with software vendors fulfilling product 
updates consistently. Two other comments expressed concern about the 
possible cost increases. To ensure a smooth transition to the bimonthly 
product cycle, the Postal Service will begin bimonthly product 
fulfillment with the October 15 product release. Thereafter products 
will be released on December 15, February 15, April 15, June 15, and 
August 15. The Postal Service believes it has given adequate notice of 
these proposed changes through the various notices and mailer meetings 
that have been a part of the Classification Reform implementation 
effort. It also believes that the benefits which will accrue from more 
timely updates justify the additional effort that mailers will need to 
make to incorporate these product releases. However, as part of its 
customer information commitment, the Postal Service will continue to 
work with the vendor industry to resolve any remaining concerns about 
product production and fulfillment.

C. Examples of Standardized Documentation

    The following pages show examples of documentation that would be 
produced under the requirements for standardized documentation 
described below.

BILLING CODE 7710-12-P

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BILLING CODE 7710-12-C

[[Page 10114]]


D. Summary of DMM Changes

    The DMM revisions shown below are the revisions published in the 
December 22, 1995, proposed rule, as modified to reflect inadvertent 
errors, comment responses, and the recommendations of the PRC as 
approved by the Governors. These revisions use as their base the text 
of DMM Issue 49 (September 1, 1995) as amended thereafter by notices 
published in the Federal Register or Postal Bulletin. Revisions are 
described by module of the DMM. This list is intended as an overview 
only, and should not be viewed as definitive.
    A (Addressing). Revisions in nomenclature are made throughout. A930 
is revised to update the list of available AIS products, and A950 is 
revised to show the more frequent product cycle for address coding 
products.
    C (Characteristics and Content). Revisions in nomenclature are made 
throughout. C100 is amended to reflect the proposed new size limits for 
pieces eligible for card rates. C300 and C400 are revised and merged 
into new C600 to recognize the merger of third- and fourth-class into 
Standard Mail. Terms used in various standards are defined in new 
sections added to C810, C820, and C840. A new section is added to C810 
to describe the standards for enclosed reply pieces.
    D (Deposit, Collection, and Delivery). Revisions in nomenclature 
are made throughout. D300 and D400 are revised and merged into new D600 
to recognize the merger of third- and fourth-class into Standard Mail.
    E (Eligibility). Revisions in nomenclature are made throughout. 
E100 is amended to consolidate the standards for First-Class Mail 
(excluding Priority Mail) into a unit on Presorted (nonautomation) mail 
and automation rate mail (in E130 and E140, respectively). E200 is 
renamed to recognize the renaming of second-class mail as Periodicals. 
E210, E250, and E270 are revised minimally. E230 and E240 are 
reorganized to present, respectively, the presort (nonautomation) rate 
and automation rate eligibility standards for Regular Periodicals, and 
to separate the standards retained for Preferred Periodicals in E239 
and E249. E300 and E400 are revised and merged into new E600 to 
recognize the merger of third- and fourth-class into Standard Mail. 
E610 presents basic standards for all Standard Mail in E611, for former 
third-class mail, now called Standard Mail (A) in E612, and for former 
fourth-class mail, now called Standard Mail (B) in E613. E620 contains 
standards for single-piece rates: single-piece Standard Mail (A) 
(E621), parcel post (E622), bound printed matter (E623), Special 
Standard Mail (currently special fourth-class mail) (E624), and Library 
Mail (E625). E630 presents standards for bulk rates: Regular Basic and 
3/5 (E631); Enhanced Carrier Route Basic, High Density, and Saturation 
(E632); basic and carrier route bulk bound printed matter (E633); 5-
Digit and BMC Presorted Special Standard Mail (E634); and, consolidated 
but without substantive change from current standards, for all existing 
Nonprofit rates (E639). E640 contains standards for automation rates: 
automation Carrier Route, 5-Digit, 3-Digit, 3/5 (for flats), and Basic 
(E641); and, also consolidated but essentially unchanged from current 
standards, for all existing Nonprofit rates (E649). E650 and E670 are 
revised minimally. Although the PRC's recommendation, as approved by 
the Governors, includes automation rate carrier route letter mail in 
the Enhanced Carrier Route subclass, for administrative purposes and 
for organizational simplicity in its rules, the Postal Service is 
presenting the standards for that mail as part of the broader standards 
in E641 (and, below, in M810) for automation rate Standard Mail.
    F (Forwarding and Related Services). Revisions are confined to 
changes in nomenclature and minor editorial changes.
    G (General Information) and I (Index Information). No revisions are 
made except to update address information, indices, and the Summary of 
Changes.
    L (Labeling Lists). Revisions in nomenclature are made throughout. 
L002 is reorganized to present information for all 3-digit ZIP Code 
areas to show where each 3-digit prefix is assigned for 3-digit, 3-
digit/scheme, and SCF distribution. L003 is added to list the 3-digit 
ZIP Code areas that are combined for scheme sortation under specific 
new preparation standards. To reflect the wider use of the ADC network, 
current L101 is relocated and renumbered as L004, with distinctions 
shown where appropriate for the respective ADC destinations to which 
First-Class, Periodicals, or Standard Mail is to be directed. For 
irregular Standard Mail (formerly third- and fourth-class irregular 
parcels), L702 and L707 are renumbered as L603 and L604, respectively. 
To reflect other revisions to distribution networks that have 
eliminated SDC, state, and mixed states preparation, L201-203, L701, 
L703, L704, and L706 are deleted.
    M (Mail Preparation and Sortation). Revisions in nomenclature are 
made throughout. Current M011 is renumbered as M012, and new M011 is 
added to consolidate basic definitions of terms used throughout other 
mail preparation instructions and to provide basic information about 
the Presort Accuracy Validation and Evaluation (PAVE) program. M012 and 
M013 are also updated to include revised formats for optional 
endorsement lines and carrier route information lines and to allow the 
inclusion of rate markings in both. M020 is amended to provide more 
consistent package preparation standards for other-than-Nonprofit mail. 
M033 is revised to add consistent standards for tray preparation for 
letter- and flat-size mail and to offer enhanced information about sack 
and tray preparation. M040 is amended to incorporate revisions to 
pallet preparation standards set forth in a final rule published on 
December 21, 1995 (60 FR 66142-66149). M041 is revised to present 
general standards for pallets and their use. M045 reorganizes the 
standards in current M042, M043, and M044 as amended by the cited 
rulemaking, to present the revised and consolidated standards for 
palletized mail preparation. M050 is revised to include information 
about line-of-travel sequencing. M100 is reorganized, with the 
standards for Presorted First-Class located in new M130. Preparation 
standards for nonautomation Regular Periodicals are in new M210; 
existing standards for nonautomation Preferred Rate Periodicals are 
consolidated in M290. M300 and M400 are revised and merged into new 
M600 to recognize the merger of third- and fourth-class into Standard 
Mail. Regular Standard Mail (A) preparation is detailed in M610, 
Enhanced Carrier Route standards are in M620, and existing standards 
for Standard Mail (B) (current fourth-class mail) and for Nonprofit 
Standard Mail are contained in M630 and M690, respectively. Revised 
preparation standards for automation rate First-Class, Regular 
Periodicals, and Standard Mail are contained in M810 (letter-size 
pieces) and M820 (flat-size pieces). M890 brings forward existing 
standards for Preferred Periodicals and Nonprofit Standard Mail. 
Throughout, the optional city preparation level has been eliminated 
(except for Preferred Periodicals) and the SDC, state, and mixed states 
preparation levels have been replaced with ADC and mixed ADC levels.
    P (Postage and Payment Methods). Revisions in nomenclature are made 
throughout. P012 is amended to improve the definition of 
``standardized'' documentation and to

[[Page 10115]]
include information about PAVE as a source for standardized postage 
documentation. P300 and P400 are revised and merged into new P600 to 
recognize the merger of third- and fourth-class into Standard Mail. 
P100 and P600 are revised to provide information about single-piece 
rate mail presented at the same time as a mailing at an automated rate. 
P710 is amended to contain new abbreviations for use with manifest 
mailings.
    R (Rates and Fees). Revisions in nomenclature are made throughout. 
R000 contains updated stamp and stamped stationery information. R100 
and R200 are amended to reflect revised rates and rate structures. R300 
and R400 are revised and merged into new R600 to recognize the merger 
of third- and fourth-class into Standard Mail and to show revised rates 
and rate structures.
    S (Special Services). Revisions in nomenclature are made throughout 
with no other substantive changes.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
those revisions to the DMM set forth below that have been specifically 
identified in the discussion as new proposals available for comment:
    1. New standards applied to Periodicals that are similar to those 
adopted in this final rule for First-Class and Standard Mail:
    a. All pieces in an automation rate mailing must be delivery point 
barcoded.
    b. Presort and other preparation standards, including a 150-piece 
minimum for preparing trays of automation rate letter-size mail.
    c. 5-digit ZIP Codes used in the addresses on nonautomation rate 
Periodicals must be verified annually for accuracy; mailers must 
certify this at the time of mailing.
    d. Letter-size reply envelopes and cards enclosed in automation 
rate pieces must meet specific standards for automation-compatibility; 
mailers must certify this at the time of mailing.
    2. Standards for documentation produced by Presort Accuracy 
Validation and Evaluation (PAVE) certified software and for 
standardized documentation produced otherwise. These standards are 
presented in P012, below; examples of documentation are also presented 
as part of this notice.

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 sections of the Domestic Mail Manual as 
noted below:
* * * * *
A  Addressing

A000  Basic Addressing

A010  General Information

[In 1.2d, replace ``second-class mail,'' and ``bulk third-class mail; 
fourth-class mail'' with ``Periodicals,'' and ``bulk rate Standard Mail 
(A); Standard Mail (B),'' respectively; remove the last sentence in 
1.3; in 1.6, replace ``First-, third-, and fourth-class mail'' with 
``First-Class and Standard Mail''; references ``E300, E400'' with 
``E600''; and ``second-class mail'' with ``Periodicals''; in 4.3f, 
replace ``Second-class mail'' with ``Periodicals''; in 4.3g, replace 
``Fourth-class mail'' with ``Standard Mail (B)''; in 7.0 (heading), 
replace ``Second-Class Mail'' with ``Periodicals''; in 7.1, replace 
``First-, third-, and fourth-class'' with ``First-Class and Standard 
Mail''; in 7.2, replace ``second-class mail'' with ``Periodicals'' and 
``2C'' with ``PER.'']

A040  Alternative Addressing Formats

[In 1.7, 2.2, 3.1, and 3.4, replace ``second-class'' with 
``Periodicals.'']

A060  Detached Address Labels

[In 1.2 (heading and text), replace ``[S]econd- or [T]hird-[C]lass'' 
with ``Periodicals or Standard Mail (A)''; in 1.3 (heading and text), 
replace ``[T]hird-[C]lass'' with ``Standard Mail (A)''; in 1.4 
(heading), remove ``Fourth-Class''; in 5.2a, replace ``Second-class'' 
with ``Periodicals''; in 3.8 (heading and text), replace ``[M]ailing 
[S]tatement'' with ``[P]ostage [S]tatement''; in 5.2b, replace 
``[T]hird-class'' with ``Standard Mail (A)'' and remove ``fourth-
class''; in 5.3, replace ``third- or fourth-class'' with ``Standard 
Mail.'']
* * * * *

A900  Customer Support Services

* * * * *

A930  Other Services

* * * * *
1.0  Delivery Statistics File
[Revise the fifth sentence as follows:]
    * * * The information is updated monthly through transaction files 
and can be ordered either with a single base file in the initial 
shipment or with a base file provided quarterly (bimonthly effective 
October 15, 1996). * * *
2.0  AIS Products
    Customers may use USPS Address Information System (AIS) products to 
obtain correct 5-digit ZIP Codes for the addresses on their mailing 
lists. These products generally are more economical than mailing list 
services. Customers with computerized address lists may obtain the 
City/State file, Five-Digit ZIP Code file, Line-of-Travel (LOT) 
information, Z4CHANGE file, ZIP Move file, Carrier Route Information 
System (CRIS), and ZIP+4 tapes. Customers may also use USPS directories 
and microfiche products to find correct 5-digit ZIP Codes for single 
and multi-ZIP Coded offices. Information about ordering and using these 
products is available by calling 1-800-238-3150.
* * * * *
[In 3.1a, 4.2, 4.3, 4.4, and 4.6, replace ``Quarterly'' and 
``quarterly'' with ``Quarterly (Bimonthly effective October 15, 1996)'' 
and ``quarterly (bimonthly effective October 15, 1996),'' 
respectively.]
* * * * *
[Revise 5.0 as follows:]
5.0  Delivery Statistics
    In post offices with rural delivery, highway contract box delivery, 
and post office box delivery, postmasters must provide, at no charge, 
the following information for their respective offices:
    a. Number of post office boxes rented.
    b. Route numbers, number of boxes, and number of families on each 
rural and highway contract box delivery route (including seasonal data, 
if applicable).
    c. Number of families served or number of business places served by 
rural or highway contract box delivery routes within the total delivery 
area.

A950  Coding Accuracy Support System (CASS)

* * * * *
3.0  Date of Address Matching and Coding

3.1  Updating Standards

    Unless Z4CHANGE is used, all automation and carrier route mailings 
bearing addresses coded by any AIS product must be coded with current 
CASS-certified software and the current USPS database. Coding must be 
performed within 90 days of the mailing date for all carrier route 
mailings; within 6 months for automation rate First-Class, Regular 
Periodicals, and Standard Mail; and within 1 year for ZIP+4 and 
Barcoded rate Preferred Periodicals and Nonprofit Standard

[[Page 10116]]
Mail. All AIS products may be used immediately upon release. New 
product releases must be included in address matching systems no later 
than 45 days after the release date. The overlap in dates for product 
use allows mailers adequate time to install the new data files and test 
their systems. Mailers are expected to update their systems with the 
latest data files as soon as practical and need not wait until the 
``last permissible use'' date to include the new information in their 
address matching systems. Effective with the October 15, 1996, database 
product release, the ``current USPS database'' product cycle is defined 
by the following matrix.

------------------------------------------------------------------------
           File release               Required use      Last permissible
------------------------------------------------------        use       
                                                      ------------------
  Use of file released on . . .       Must begin no     And must end no 
                                    later than . . .    later than . . .
------------------------------------------------------------------------
Feb. 15..........................  Apr. 1............  May 31.          
Apr. 15..........................  June 1............  July 31.         
June 15..........................  Aug. 1............  Sept. 30.        
Aug. 15..........................  Oct. 1............  Nov. 30.         
Oct. 15..........................  Dec. 1............  Jan. 31.         
Dec. 15..........................  Feb. 1............  Mar. 31.         
------------------------------------------------------------------------

* * * * *
5.0  Documentation

5.1  Requirement

    Unless excepted by standard, each mailing submitted at an 
automation rate, at a carrier route Periodicals rate, or at an Enhanced 
Carrier Route Standard Mail rate, must be accompanied by documentation 
as described below.
* * * * *

5.4  Providing Required Data

* * * * *
    b. Name of the list processor using the CASS-certified software to 
match and code the address list, the date the address list was 
processed, the date of the USPS database used to code the address list, 
the address list name or identification number, the total number of 
address records on the list submitted for coding, the total number of 
address records successfully coded to the appropriate depth of code, 
and the percentage of total addresses submitted for coding that were 
successfully coded.
* * * * *
6.0  Obtaining CASS Certification

6.1  Testing Arrangements

[Replace ``ZIP+4 or delivery point'' with ``carrier route, ZIP+4, or 
delivery point.'']
* * * * *
C  Characteristics and Content

C000  General Information

C010  General Mailability Standards

[In 1.1 and 3.8, replace ``third-class'' with ``Standard Mail (A)''; in 
1.7, replace ``C300'' and ``third-class mail'' with ``C600'' and 
``Standard Mail (A),'' respectively; in 6.0, replace the reference 
``G010'' with ``G020''; in 7.8 (heading), replace ``Scope'' with 
``High-Density''; in 9.3, replace the reference ``I042'' with ``G042''; 
no other change in text.]
* * * * *

C020  Restricted or Nonmailable Articles and Substances

[In 4.1, remove ``Title.'']
[Revise the heading of C021 as follows:]

C021  Articles and Substances Generally

* * * * *

C023  Hazardous Matter

[In 10.7, replace ``40 CFR 172, Identification Number Cross Reference 
Index to Proper Shipping Names,'' with ``40 CFR 172''; in 11.2, replace 
``Except under 10.10, parcels'' with ``Parcels''; in 11.6, replace 
``mailing statement'' with ``postage statement''; no other change in 
text.]
* * * * *

C024  Other Restricted or Nonmailable Matter

[In 12.1, replace ``First-, third-, or fourth-class'' with ``First-
Class or Standard Mail''; no other change in text.]
* * * * *

C050  Mail Processing Categories

1.0  Basic Information
[Remove current 1.1 and 1.2 and replace with new 1.0 as follows:]
    All mail is assigned to one of the mail processing categories 
listed below, based on the physical dimensions of the mailpiece, 
regardless of the placement (orientation) of the delivery address on 
the mailpiece. Unless permitted by standard, any mailing at other than 
the single-piece First-Class or Standard Mail rates may not contain 
pieces from more than one processing category.
* * * * *

C100  First-Class Mail

1.0  Dimensions
[In 1.2, remove the reference ``(see C400).'']
* * * * *
2.0  Cards Claimed at Card Rates

2.1  Postcard Dimensions

    Each card (i.e., each postal card or postcard or each half of a 
double postal card or postcard) claimed at a card rate must be:
    a. Rectangular.
    b. Not less than 3\1/2\ inches high, 5 inches long, or 0.007 inch 
thick.
    c. Not larger than 4\1/4\ inches high, 6 inches long, or 0.016 inch 
thick.
* * * * *

2.8  Special Rules for Cards

    Cards not mailed as Presorted First-Class Mail but with the 
characteristics noted in 2.6 or 2.7 must:
    a. Be prepared in mailings of not less than 200 cards of identical 
size and weight.
    b. Have an address that includes the correct ZIP Code or ZIP+4 
code.
    c. Have postage paid with permit imprints, meter stamps, or 
precanceled stamps.
    d. Be sorted to the finest extent possible and trayed as required 
for Regular Basic and 3/5 Standard Mail.
* * * * *
[Remove current 2.11 and renumber current 2.12 as 2.11; renumber 
current 3.0 as 4.0 and add new 3.0 as follows:]
3.0  Enclosures
    Enclosures in double cards are prohibited. Envelopes and cards 
enclosed in automation rate First-Class Mail are subject to the 
corresponding standards in C810.
4.0  Nonstandard Mail
[Replace ``A piece of First-Class Mail weighing 1 ounce or less'' with 
``Single-piece rate and Presorted rate First-Class Mail weighing 1 
ounce or less, and not claimed at a card rate,''; no other change.]
* * * * *
[Revise the heading of C200 as follows:]

C200  Periodicals

[In 1.1, 1.2, 1.3, 1.4, 1.4a, 1.4b, 1.4c, 1.5a, 1.6, 1.9, 1.10a, 1.10c, 
2.1, 2.2, 2.3, 2.4, 2.5, 3.3, 3.7, 4.2, and 4.4, replace ``[S]econd-
[C]lass'' with ``Periodicals''; in 1.3, 1.3b, 1.3c, 1.3d, and 1.10c, 
replace ``First- or [any] third-class'' with ``First-Class or [any] 
Standard Mail (A)''; in 1.3a, 1.3d, 1.8b, and 1.10c, replace ``[T]hird-
[C]lass [Mail]'' with ``Standard Mail (A)''; in 1.4d, replace ``mailing 
statement'' with ``postage statement''; in 2.2c, replace ``First-, 
third-, or fourth-class'' with ``First-Class or Standard Mail''; in 
2.4, replace ``Fourth-[C]lass [M]ail'' with ``Standard Mail (B)''; no 
other change in text.]


[[Page 10117]]

[Move current Exhibit [C300.]1.3 to new C600.1.1c and redesignate as 
Exhibit [600.]1.1c; retitle redesignated Exhibit 1.1c as ``Dimensions 
for Enhanced Carrier Route Standard Mail''; remove text of C300.]

[Move current Exhibit [C400.]1.2 to new C600.1.2b and redesignate as 
Exhibit [C600.]1.2b; remove text of current C300 and C400.]

[No change to C500.]

[Insert new C600, based on text of current C300 and C400, as follows:]

C600  Standard Mail

1.0  Dimensions

1.1  Standard Mail (A)

    These dimensional standards apply to Standard Mail (A):
    a. Each piece must weigh less than 16 ounces. Lower limits apply to 
mail claimed at automation rates.
    b. Within the standards for mailability in C010, there is no 
maximum size for nonautomation rate Regular and Nonprofit Standard Mail 
(A); all automation rate Standard Mail (A) is subject to the size and 
weight limits in C810 (letters) and C820 (flats), as applicable.
    c. Except for automation Basic Carrier Route rate pieces and 
merchandise samples mailed with detached address labels (DALs), the 
maximum size for Enhanced Carrier Route Standard Mail is 11\3/4\ inches 
high, 14 inches long, and \3/4\ inch thick (see Exhibit 1.1c). 
Merchandise samples whose dimensions exceed these maximums may be sent 
at the Enhanced Carrier Route rates if mailed using DALs, provided that 
the samples meet all other applicable standards and the DALs meet the 
standards in A060.
[Insert redesignated Exhibit [600.]1.1c.]

1.2  Standard Mail (B)

    These dimensional standards apply to Standard Mail (B):
    a. Each piece may not exceed 70 pounds, except matter at bound 
printed matter rates may not exceed 10 pounds.
    b. The combined length and girth of a piece (i.e., the length of 
its longest side plus the distance around its thickest part) may not 
exceed 108 inches (see Exhibit 1.2b).
    c. Two or more packages may be mailed as a single parcel, if they 
are about the same size or shape or if they are parts of one article, 
if they are securely wrapped or fastened together, and if they do not 
together exceed the weight or size limits.
    d. Lower size or weight standards apply to mail claimed at certain 
rates, addressed to certain APOs and FPOs, or sent by the Department of 
State to U.S. Government personnel abroad.
    e. Pieces might be subject to minimum weight or dimensions based on 
the standards for specific rates.

[Insert redesignated Exhibit [600.]1.2b.]
2.0  Surcharges

2.1  Nonstandard Mail

    Single-piece rate Standard Mail (A) (other than a key or 
identification device) weighing 1 ounce or less is nonstandard and 
subject to the applicable surcharge if its thickness exceeds \1/4\ inch 
or, if based on the placement (orientation) of the address, its length 
exceeds 11\1/2\ inches, its height exceeds 6\1/8\ inches, or its length 
divided by its height is less than 1.3 or more than 2.5.

2.2  Nonmachinable Mail

    Specific items mailed at the inter-BMC/ASF parcel post rates might 
be subject to a nonmachinable surcharge (as described in E600) unless 
the mailer paid the special delivery or special handling fee.
3.0  Sealing
    Standard Mail is not sealed against postal inspection. Standard 
Mail may be prepared for automated processing but must allow easy 
examination.
4.0  Enclosures
    Envelopes and cards enclosed in automation Standard Mail are 
subject to the corresponding standards in C810.

C800  Automation-Compatible Mail

[Renumber current Exhibit [C800.]8.3 as Exhibit 7.2b; replace text of 
current C810 with new C810 as follows:]

C810  Letters and Cards

1.0  Basic Standards
    Letters and cards claimed at automation-based rates must meet the 
standards in 2.0 through 7.0, and the general and specific standards 
for mailability and mail class. Pieces claimed at a card rate must also 
meet the standards in C100.
2.0  Dimensions

2.1  Shape and Size

    Each mailpiece must be rectangular and:
    a. Not more than 6\1/8\ or less than 3\1/2\ inches high.
    b. Not more than 11\1/2\ or less than 5 inches long.
    c. Not more than 0.25 or less than
    (1) 0.007 inch thick if not more than 4\1/4\ inches high and 6 
inches long; or
    (2) 0.009 inch thick if more than 4-1/4 inches high or 6 inches 
long, or both.

2.2  Aspect Ratio

    The length of a mailpiece divided by its height (aspect ratio) must 
be neither less than 1.3 nor more than 2.5.

2.3  Weight

    Maximum weight limits are:
    a. 2.5 ounces: upgradable Presorted First-Class, ZIP+4 Preferred 
Periodicals, upgradable nonautomation Regular Standard Mail, and ZIP+4 
Nonprofit Standard Mail.
    b. 3 ounces: automation First-Class Mail, automation Regular 
Periodicals, automation Standard Mail, and Barcoded Nonprofit Standard 
Mail.
    c. 3.3062 ounces: automation Enhanced Carrier Route heavy letters 
(subject to 7.5).
    d. 3.3087 ounces: automation Standard Mail heavy letters (subject 
to 7.5).
    e. 3.4383 ounces: automation First-Class Mail, automation Regular 
Periodicals, and Barcoded Nonprofit Standard Mail heavy letters 
(subject to 7.5).
3.0  General Prohibitions and Restrictions

3.1  Wraps and Closures

    An automation-compatible mailpiece may not be polywrapped, 
polybagged, or shrinkwrapped; have clasps, string, buttons, or similar 
closure devices; or have protrusions that might impede or damage the 
mail or mail processing equipment.

3.2  Staples and Saddle Stitching

    Staples or saddle stitching may be used only on booklet-type 
mailpieces to join the bound edge (spine). Inserted staples or 
stitching must parallel the bound edge, seat tightly and securely, and 
have no protrusions that might impede or damage the mail or mail 
processing equipment.

3.3  Rigid and Odd-Shaped Items

    Rigid items (e.g., pens, pencils, keys, bottle caps) are prohibited 
within mailpieces. Reasonably flexible items (e.g., credit cards) are 
permitted. Subject to 5.0, odd-shaped items (e.g., coins and tokens) 
are permitted if firmly affixed to and wrapped within the contents of 
the mailpiece and envelope to streamline the shape of the mailpiece for 
automated processing.
4.0  Tabs, Wafer Seals, Tape, and Glue
    Tabs, wafer seals, cellophane tape, or permanent glue (continuous 
or spot) may be used as applicable to the

[[Page 10118]]
particular type of mailpiece under 7.0 if the sealing devices do not 
interfere with the recognition of the barcode, rate marking, postage 
information, or delivery or return addresses. In all cases, additional 
tabs or seals may be used. Cellophane tape is not acceptable within the 
barcode clear zone. Tabs or wafer seals placed in the barcode clear 
zone must contain a paper face meeting the standards for background 
reflectance and, if the barcode is not preprinted by the mailer, the 
standards for acceptance of water-based ink. Tabs, wafer seals, and 
tape must have a peel adhesion (shear strength) value of at least 15 
ounces/inch at a speed of 12 inches/minute after application to a 
stainless steel plate; the test is to be conducted 10 minutes after the 
material is applied to the plate.
5.0 Flexibility

5.1  Ability to Bend

    To ensure transport through automated equipment, a mailpiece and 
its contents must bend easily when subjected to a transport belt 
tension of 40 pounds around an 11-inch diameter drum.

5.2  Testing Flexibility

    A mailer wanting to have mailpieces tested for flexibility must 
submit at least 50 sample pieces and a written request to USPS 
Engineering at least 6 weeks before the mailing date. The request must 
describe mailpiece contents and construction, number of pieces being 
produced, and level of preparation (e.g., presort). Engineering advises 
the mailer by letter of its findings. If the mailpiece is approved, the 
letter includes a unique number identifying the piece tested and serves 
as evidence that the piece meets the relevant standards. A copy of the 
letter must be attached to each postage statement submitted for 
mailings of the approved piece. If requested by the USPS, the mailer 
must show that pieces presented for mailing are the same as those 
tested and approved.
6.0  Outside Labels and Stickers

6.1  Use

    Permanent labels and stickers (i.e., those designed not to be 
removed or relocated) must be affixed directly to the outside of the 
mailpiece with permanent adhesive. A mailer may provide recipients with 
relocatable labels to place on the outside of response pieces sent back 
to the mailer. On pieces mailed at First-Class card rates or at 
Periodicals rates, labels and stickers may be used only if permitted by 
the applicable standards.

6.2  Pressure-Sensitive Labels

    Pressure-sensitive labels and stickers affixed directly to 
mailpieces before mailing must have a minimum peel adhesion to 
stainless steel of 8 ounces/inch. This standard does not apply to 
pressure-sensitive labels provided by the USPS to label packages to 
sortation levels.

6.3  ``Sandwich'' Labels

    A face stock/liner label (``sandwich'' label) is a two-part unit 
with a face stock (top label) attached to a liner (bottom label) 
affixed to the mailpiece. The face stock must have a peel adhesion 
value of at least 2 ounces/inch with respect to the liner label and at 
least 8 ounces/inch when reapplied to stainless steel.
7.0  Additional Standards for Specific Types of Pieces

7.1  Envelopes and Pieces Sealed on All Sides

    An envelope or any mailpiece formed by an outer sheet or sheets 
sealed on all four edges must be prepared from paper with a minimum 
basis weight of 16 pounds (measured weight for 500 17- by 22-inch 
sheets).

7.2  Folded Self-Mailers

    A folded self-mailer must be prepared with the folded edge parallel 
to the longest dimension and the address of the mailpiece. These 
additional standards apply, based on the number of tabs used:
    a. With one tab or wafer seal, the folded edge must be at the 
bottom of the self-mailer. The tab or wafer seal must be placed in the 
middle of the top edge of the piece. If formed of a single folded 
sheet, the self-mailer must be prepared from paper with a minimum basis 
weight of 28 pounds (measured weight for 500 17- by 22-inch sheets) or 
70 pounds (measured weight for 500 25- by 38-inch sheets). If formed of 
multiple folded sheets, the self-mailer must be prepared from paper 
with a minimum basis weight of 24 pounds (measured weight for 500 17- 
by 22-inch sheets) or 60 pounds (measured weight for 500 25- by 38-inch 
sheets).
    b. With two tabs or wafer seals, the folded edge may be at the top 
or bottom of the self-mailer. The two tabs or wafer seals must be 
placed on the open edge, opposite the folded edge. One tab or wafer 
seal must be placed within 1 inch of the left edge of the piece; the 
other, within 1 inch of the right edge of the piece (see Exhibit 7.2b). 
The whole tab need not be placed within 1 inch of the edge. The tabs 
must not obscure the FIM, postage, or required address information. The 
folded self-mailer must be prepared from paper with a minimum basis 
weight of 20 pounds (measured weight for 500 17- by 22-inch sheets).

[Insert renumbered Exhibit 7.2b.]

7.3  Booklet-Type Pieces

    The front and back covers of a booklet-type piece must be prepared 
from paper with a minimum basis weight of 20 pounds (measured weight 
for 500 17- by 22-inch sheets). The bound edge (spine) must be the 
longest edge of the piece and at the bottom, parallel to the address. 
The top (unbound) edge must be secured with at least two tabs or wafer 
seals. One tab or wafer seal must be placed within 1 inch of the left 
edge of the piece; the other, within 1 inch of the right edge of the 
piece.

7.4  Cards

    Cards must be prepared from paper stock meeting the industry 
standard for a basis weight of 75 pounds or greater, with none less 
than 71.25 pounds (measured weight for 500 25- by 38-inch sheets). The 
stock must be free from groundwood unless coated with a substance 
adding to the stock's ability to resist an applied bending force. A 
double postcard not prepared with all edges sealed must have the folded 
edge at the top or bottom, and the open edge parallel to the address 
must be secured with one tab (or other permitted closure) in the middle 
of the length.

7.5  Heavy Letter Mail

    Heavy letter mail (i.e., barcoded letter-size mail weighing more 
than 3 ounces up to the maximum in 2.3) must meet the additional 
barcoding standards in C840, must be prepared in an envelope, and must 
be part of a 100% delivery point barcoded mailing. Heavy letter mail 
may neither contain stiff enclosures nor be prepared as a self-mailer 
or booklet-type mailpiece.
8.0  Enclosed Reply Cards and Envelopes

8.1  Basic Standard

    Effective January 1, 1997, all courtesy reply and business reply 
mail (BRM) letter-size cards and envelopes provided as enclosures in 
automation First-Class, automation Regular Periodicals, and automation 
Regular Standard Mail must meet the applicable standards in 1.0 through 
7.0, bear a facing identification mark meeting the standards in 8.2, 
and bear the correct delivery point barcode (or, for BRM, the correct 
ZIP+4 barcode) for the delivery address of the reply piece as defined 
by the USPS, subject to the barcode standards in C840. Mailers

[[Page 10119]]
must certify that these standards have been met when the corresponding 
mail is presented to the USPS. BRM pieces must also meet the applicable 
standards in S922.

8.2  FIM

    Each enclosed reply piece described in 8.1 must bear the correct 
facing identification mark (FIM), either FIM A for courtesy reply or 
FIM C for BRM, prepared under the standards in S922.

C820  Flats

[Add new 1.0; renumber current 1.0 through 6.0 as 2.0 through 7.0, 
respectively; renumber Exhibit 4.1a, Exhibit 4.1b, and Exhibit 4.2 as 
Exhibit 5.1a, Exhibit 5.1b, and Exhibit 5.2, respectively; remove 
renumbered 2.1 and redesignate renumbered 2.2 through 2.5 as 2.1 
through 2.4, respectively; in renumbered 2.4b and 6.2, replace 
``second-class'' with ``Periodicals''; in renumbered 2.4c, replace 
``third-class'' with ``Standard Mail (A)''; revise other text as 
follows:]
1.0  Basic Standards
    All pieces must meet the general and specific standards for 
mailability and the class of mail and rate claimed.
2.0  General Dimensions
* * * * *
[Revise the heading and text of renumbered 2.3 as follows:]

2.3  Shape and Size

    Each mailpiece must be rectangular and:
    a. Not more than 12 or less than 6 inches high.
    b. Not more than 15 or less than
    (1) 5 inches long if from 6 to 7\1/2\ inches high; or
    (2) 6 inches long if more than 7\1/2\ inches high.
    c. Not more than 0.75 or less than 0.009 inch thick.
* * * * *
[Revise renumbered 4.0 as follows:]
4.0  Tabs, Wafer Seals, Tape, and Glue
    Tabs, wafer seals, cellophane tape, or permanent glue (continuous 
or spot) may be used if these sealing devices do not interfere with the 
recognition of the barcode, rate marking, postage information, and 
delivery and return addresses. Cellophane tape may not be placed over 
the barcode or where any part of the barcode will be printed. Tabs or 
seals placed in the area on which any part of the barcode is printed 
must contain a paper face meeting the standards for background 
reflectance. Tabs, wafer seals, and tape must have a peel adhesion 
(shear strength) value of at least 15 ounces/inch at a speed of 12 
inches/minute after application to a stainless steel plate; the test is 
to be conducted 10 minutes after the material is applied to the plate.
5.0  Turning Ability and Deflection
[In renumbered 5.1a, replace ``(see Exhibit 4.1a)'' with ``(see Exhibit 
5.1a)''; in renumbered 5.1b, replace ``(see Exhibit 4.1b)'' with ``(see 
Exhibit 5.1b)''; in renumbered 5.2 (heading), replace ``Rigidity'' with 
``Deflection''; in renumbered 5.2, replace reference ``Exhibit 4.2'' 
with ``Exhibit 5.2''; no other change.]
* * * * *
[Revise renumbered 7.0 as follows:]
7.0  Outside Labels and Stickers

7.1  Use

    Permanent labels and stickers (i.e., those designed not to be 
removed or relocated) must be affixed directly to the outside of the 
mailpiece with permanent adhesive. A mailer may provide recipients with 
relocatable labels to place on the outside of response pieces sent back 
to the mailer. On pieces mailed at Periodicals rates, labels and 
stickers may be used only if permitted by the applicable standards.

7.2  Pressure-Sensitive Labels

    Pressure-sensitive labels and stickers affixed directly to 
mailpieces before mailing must have a minimum peel adhesion to 
stainless steel of 8 ounces/inch. This standard does not apply to 
pressure-sensitive labels provided by the USPS to label packages to 
sortation levels.

7.3  ``Sandwich'' Labels

    A face stock/liner label (``sandwich'' label) is a two-part unit 
with a face stock (top label) attached to a liner (bottom label) 
affixed to the mailpiece. The face stock must have a peel adhesion 
value of at least 2 ounces/inch with respect to the liner label and at 
least 8 ounces/inch when reapplied to stainless steel.
* * * * *
[Revise the heading of C830 as follows:]

C830  OCR Standards

* * * * *

C840  Barcoded Mailpieces

* * * * *
[Revise 2.0 as follows:]
2.0  Barcode Location--Letter-Size Pieces

2.1  Barcode Clear Zone

    Each piece in an automation rate mailing and each piece of 
upgradable Presorted First-Class or upgradable Regular Standard Mail 
must have a barcode clear zone unless the piece bears a DPBC in the 
address block. The barcode clear zone and all printing and material in 
the clear zone must meet the reflectance standards in 5.0. The barcode 
clear zone is a rectangular area in the lower right corner of the 
address side of cards and letter-size pieces defined by these 
boundaries:
    a. Right: right edge of the piece.
    b. Left: 4-3/4 inches from the right edge of the piece.
    c. Bottom: bottom edge of the piece.
    d. Top: 5/8 inch from the bottom edge of the piece.

2.2  General Standards

    Barcode location is subject to these general standards:
    a. Pieces in automation rate mailings, except those subject to 2.2b 
or 2.2c, may bear a DPBC (or, when permitted by standard, a 5-digit 
barcode) in either the address block or the barcode clear zone. Pieces 
may bear a ZIP+4 barcode (subject to rate eligibility standards) only 
when the ZIP+4 barcode is in the address block and the DPBC is 
correctly positioned within the barcode clear zone.
    b. ZIP+4 rate pieces may bear a DPBC within either the address 
block or the barcode clear zone. Pieces may not bear a ZIP+4 barcode in 
the lower right corner. Subject to rate eligibility standards, pieces 
may bear a ZIP+4 barcode in the address block or a 5-digit barcode 
within either the address block or the barcode clear zone in the lower 
right corner of the address side.
    c. Automation rate pieces weighing more than 3 ounces, up to the 
maximum weight for barcoded pieces permitted by C810, must bear a DPBC 
in the address block.

2.3  Printed on Mailpiece

    Except as noted in 8.2 for 5-digit barcodes, if the barcode is 
printed directly on the lower right corner of the piece, the entire 
barcode must be within the barcode read area defined by these limits:
    a. Horizontally, the leftmost bar must be between 3-1/2 inches and 
4-1/4 inches from the right edge of the mailpiece.
    b. Vertically, the barcode must be positioned within the area 
between 3/16 inch and 7/16 inch from the bottom edge of the mailpiece; 
the bottom of the bars must be 1/4 inch 1/16 inch from the 
bottom edge of the mailpiece.

2.4  Printed on Inserts

    If the barcode is printed on an insert to appear through a window 
in the lower right corner of an envelope:

[[Page 10120]]

    a. The envelope and window must meet the physical standards in 7.0.
    b. The entire barcode must be within the barcode clear zone (but 
need not be completely within the barcode read area).
    c. When the insert showing through the window is moved to any of 
its limits inside the envelope, the entire barcode must remain within 
the barcode clear zone, and a clear space must be maintained that is at 
least 1/8 inch between the barcode and the left and right edges of the 
window, at least 1/25 inch between the barcode and the top edge of the 
window, and at least 3/16 inch between the barcode and the bottom edge 
of the mailpiece.

2.5  Printed in Address Block

    When the barcode is included as part of the address block:
    a. The barcode must be placed above the address line containing the 
recipient's name; below the city, state, and ZIP Code line; above or 
below the keyline information; or above or below the optional 
endorsement line.
    b. The printing of the barcode anywhere between the address line 
containing the recipient's name and the city, state, and ZIP Code line 
is prohibited.
    c. The minimum clearance between the barcode and any information 
line above or below it within the address block must be at least 1/25 
inch, and the separation between the barcode and top line or bottom 
line of the address block must not exceed 5/8 inch.
    d. If a window envelope is used, the clearance between the leftmost 
and rightmost bars and any printing or window edge must be at least 1/8 
inch, and the clearance between the barcode and the top and bottom 
window edges must be at least 1/25 inch. These clearances must be 
maintained during the insert's range of movement in the envelope. 
Address block windows on heavy letter mail (as defined in 2.2c) must be 
covered; such windows may be covered on other mail. Covers for address 
block windows are subject to 7.3.
    e. If an address label is used, a clear space of at least 1/8 inch 
must be left between the barcode and the left and right edges of the 
address label, and the clearance between the barcode and the top and 
bottom edges of the address label must be at least 1/25 inch.
    f. The rightmost bar must be at least 1/2 inch from the right edge 
of the mailpiece, and the leftmost bar must be less than 10-1/2 inches 
from the right edge of the mailpiece and at least 1/2 inch from the 
left edge of the mailpiece; the top of each bar must be less than 4 
inches from the bottom edge of the mailpiece; and the bottom line of 
the address block, including the barcode, must be at least 5/8 inch 
from the bottom of the mailpiece.

[Renumber current 3.0 through 9.0 as 4.0 through 10.0, respectively; in 
renumbered 7.2, replace the reference ``6.3'' with ``7.3''; in 
renumbered 7.3, replace the reference ``4.0'' with ``5.0''; add new 3.0 
as follows:]
3.0  Barcode Location--Flat-Size Mail
    The barcode may be anywhere on the address side that is at least 1/
8 inch from any edge of the mailpiece. That portion of the surface of 
the piece on which the barcode is printed must meet the reflectance 
standards in 5.0. The address side may bear only one POSTNET-format 
barcode (i.e., the correct barcode for the delivery address on the 
mailpiece). Other mailer-applied non-POSTNET barcodes may appear on the 
address side if their format is not intelligible or not confusing to 
automated postal equipment. Address block barcodes are subject to the 
standards in 2.5a through 2.5f.

[Revise renumbered 4.0 as follows:]
4.0  Barcode Dimensions and Spacing
    Barcodes are subject to these standards for dimensions and spacing. 
Extraneous ink or ink voids must not cause any bar to fail to meet 
these standards:
    a. A full bar must be 0.125 0.010 inch high.
    b. A half bar must be 0.050 0.010 inch high.
    c. All bars must be 0.020 0.005 inch wide.
    d. Measured over any 1/2 inch, horizontal spacing of the bars must 
be 22 2 bars per inch, and pitch (a bar and a space) must 
average at least 0.0416 inch but no more than 0.05 inch. The clear 
vertical space between bars must not be less than 0.012 inch nor more 
than 0.04 inch.
5.0  Reflectance
* * * * *

5.4  Dark Fibers and Background Patterns

* * * * *
    c. The barcode clear zone on all nonbarcoded pieces in a letter-
size barcoded mailing.
* * * * *
8.0  Use of ZIP+4 or 5-Digit Barcodes

8.1  Automation Pieces

    Pieces in automation rate mailings are subject to these standards:
    a. Subject to the eligibility standards for the rate claimed, 
pieces in automation rate mailings of Preferred Periodicals and 
Nonprofit Standard Mail may bear a ZIP+4 or 5-digit barcode if the 
barcode meets the standards in 3.0 through 6.0 except that a ZIP+4 
barcode may not appear in the lower right corner on pieces in ZIP+4 
rate mailings or in Barcoded rate mailings of pieces with address block 
barcodes.
    b. Letter-size pieces in automation rate mailings of First-Class 
Mail, Regular Periodicals, and Standard Mail may not bear a 5-digit or 
ZIP+4 barcode in the lower right corner. Pieces may bear a 5-digit or 
ZIP+4 barcode in the address block if a DPBC appears in the lower right 
corner.
    c. Flat-size pieces in automation rate mailings of First-Class 
Mail, Regular Periodicals, and Standard Mail may not bear a 5-digit 
barcode.

8.2  Leftmost Bar

    Any 5-digit barcode must be located as specified in 2.0, except 
that, if placed in the barcode clear zone, the leftmost bar of the 
barcode must be between 4-1/8 and 4-1/4 inches from the right edge of 
the mailpiece.
* * * * *
D  Deposit, Collection, and Delivery

D000  Basic Information

* * * * *

D020  Plant Loads

[In 3.1, replace ``second-, third-, and fourth-class mail'' with 
``Periodicals and Standard Mail'' and ``mailing statement'' with 
``postage statement''; in the table in 5.0 in the first column, replace 
``Second-Class'' with ``Periodicals'' and ``Bulk Mail Acceptance Unit'' 
with ``Business Mail Entry Unit (BMEU)''; in the table in 5.0 in the 
fourth column, replace ``Post Office of Acceptance Unit'' with ``BMEU 
Post Office'' and both ``Eligible SCF'' and ``Delivery/SCF Office'' 
with ``Entry Office''; in the table in 5.0, in footnote 1, replace 
``Mailing statements'' with ``Postage statements''; in the table in 
5.0, in footnote 2, replace ``carrier route First-Class, Presorted 
First-Class, ZIP+4, and Barcoded rate mail'' with ``Presorted First-
Class and all automation rate mail.'']
* * * * *

D041  Customer Mail Receptacles

[In 2.10, replace ``second-class mail'' with ``Periodicals.''] D042 
Conditions of Delivery
[In 7.0, replace the reference ``M011'' with ``M012.'']

[[Page 10121]]


D071  Express Mail and Priority Mail Drop Shipment

[In 1.2, 1.3, 2.2, and 2.3, replace ``bulk mail acceptance unit'' with 
``business mail entry unit.'']

D072  Drop Shipment of Metered Mail

[In 5.2, 5.3, 6.2, and 6.3, replace ``mailing statement'' with 
``postage statement.'']
4.0  Option 2: Deposit at Another Post Office
* * * * *
[Revise 4.4 as follows:]

4.4  Markings

    The drop shipment endorsement placed in the ad plate area may 
include the marking required by the standards for the rate claimed if 
that marking is placed directly below the drop ship endorsement and 
meets the standards in M012. The marking may also be provided 
separately, not necessarily by meter ad plate, directly below the meter 
stamp or imprint, if it meets the relevant size and legibility 
standards.
* * * * *
5.0  Option 3: Consolidated Drop Shipment With Endorsement
* * * * *
[Combine 5.2 and 5.3 as 5.2 and revise the heading as follows:]

5.2  Barcoded and Nonbarcoded Portion

[In new 5.2, replace ``mailing statement'' with ``postage statement.'']
[Renumber current 5.4 through 5.11 as 5.3 through 5.10, respectively.]
* * * * *
6.0  Option 4: Consolidated Drop Shipment Without Endorsement
* * * * *
[Combine 6.2 and 6.3 as 6.2 and revise the heading as follows:]

6.2  Barcoded and Nonbarcoded Portion

[In new 6.2, replace ``mailing statement'' with ``postage statement.''] 
Renumber current 6.4 through 5.12 as 6.3 through 6.11, respectively.]
* * * * *

D100  First-Class Mail

[In 2.5, replace ``carrier route First-Class, Presorted First-Class, 
ZIP+4, and Barcoded rate'' with ``Presorted First-Class or automation 
rate''; remove 2.6; in 3.3, replace ``a presorted or automation First-
Class rate'' with ``a Presorted First-Class rate or an automation 
First-Class rate''; remove 3.4 and renumber current 3.5 and 3.6 as 3.4 
and 3.5, respectively; in renumbered 3.5, replace ``mailing statement'' 
with ``postage statement.'']
[Revise the heading of D200 as follows:]

D200  Periodicals

D210  Basic Information

[In 1.0, 2.1, 2.2, 3.1, 3.4, 4.0 (heading), 4.1, and 4.2, replace 
``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; in 2.1, replace 
``First-, third- or fourth-class'' with ``First-Class or Standard 
Mail''; in 4.4a, replace ``second-class mail privileges'' with 
``Periodicals mailing privileges''; in 4.5d, replace ``mailing 
statements'' with ``postage statements.'']

D230  Additional Entry

[In 1.1, replace ``second-class'' with ``Periodicals''; in 1.1 and 1.5, 
replace ``mailing statements'' with ``postage statements''; in 4.5, 
replace ``second- and third-class mail'' and ``third-class mail'' with 
``Periodicals and Standard Mail (A)'' and ``Standard Mail (A),'' 
respectively.]
[Remove D300.]

[Remove D400.]

[No change to D500.]

[Insert new D600, based on current D300 and D400, and revise as 
follows:]

D600  Standard Mail

1.0  Service Objectives

    The USPS does not guarantee the delivery of Standard Mail within a 
specified time. Standard Mail might receive deferred service. Local 
postmasters can provide more information.
2.0  Mail Deposit

2.1  Single-Piece Rates

    Single-piece rate parcel post, bound printed matter, Special 
Standard Mail, or Library Mail must be deposited at a time and place 
specified by the mailing post office postmaster. Single-piece rate 
Standard Mail (A) bearing regular adhesive stamps may be placed into 
collection boxes, mailchutes, receiving boxes, or other places where 
mail is accepted. Mail with meter postage must be deposited in a 
location under the jurisdiction of the licensing post office, except as 
permitted in D072. Mail with permit imprints must be presented at the 
post office as specified in P040 or P700. Mail with precanceled stamps 
must be presented at the post office as specified in P023.

2.2  Bulk Rates

    Bulk rate Standard Mail must be presented at a business mail entry 
unit of the post office where the postage permit or license is held and 
the annual bulk mailing fee is paid. Mailings must be deposited at the 
locations and times specified by the postmaster. Plant-loaded mailings 
must be presented as specified by the applicable standards and the 
plant load agreement. Metered bulk Standard Mail may be deposited at 
other than the licensing post office only as permitted under D072. 
Nonprofit Standard Mail must be deposited only at post offices where 
the USPS has approved a nonprofit authorization under the relevant 
standards.

2.3  Zoned Rates

    Unless excepted by other standards, pieces paid at zoned rates must 
be presented for acceptance at the post office from which the 
applicable zoned rate postage is computed.

2.4  Separation of Mailings

    Unless permitted by standard, the same mailing (as defined in M011) 
may not include pieces claimed at Regular rates, Nonprofit rates, or 
Enhanced Carrier Route rates; or at both automation and nonautomation 
rates; or at both Nonprofit 3/5 and Nonprofit carrier route rates. 
Mailings that separately qualify at Enhanced Carrier Route and Regular 
rates, or mailings that separately qualify at Nonprofit rates may be 
reported on the same postage statement, if all pieces from each mailing 
are presented at the same time and are correctly marked and prepared 
under the respective standards.
* * * * *
[No change to D900.]
E  Eligibility

E000  Special Eligibility Standards

E010  Overseas Military Mail

[In 1.3, replace ``Third- or fourth-class'' with ``Standard Mail''; in 
1.4, replace ``Second-[C]lass'' with ``Periodicals''; in 1.5, replace 
the reference ``C400'' and ``fourth-class'' with ``C600'' and 
``Standard Mail (B),'' respectively; in 3.1, replace ``second-, third-, 
or fourth-class'' with ``Periodicals or Standard Mail''; in 3.3, 
replace ``second-, third-, or fourth-class mail'' with ``Periodicals or 
Standard Mail''; no other change in text.]
* * * * *

E040  Free Matter for the Blind and Other Handicapped Persons

[In 4.1b, replace the reference ``C400'' with ``C600.'']
* * * * *

E060  Official Mail (Penalty)

[Renumber Exhibit 13.4 as Exhibit 13.3; in 13.3, add to end of section 
``See Exhibit 13.3 for format.'' In 4.3, 5.4a,

[[Page 10122]]
6.1, 13.0 (heading), 13.1, 13.2, 13.3, renumbered Exhibit 13.3, 13.5, 
and 15.2b, replace ``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; 
in 13.4, replace ``Exhibit 13.4'' with ``Exhibit 13.3''; remove the 
last sentence in 7.3; remove 9.6 and renumber 9.7 through 9.9 as 9.6 
through 9.8, respectively; in 12.1, replace ``(including Priority 
Mail), single-piece third-class, and single-piece fourth-class (parcel 
post, special-fourth-class, and bound printed matter)'' with 
``(including Priority Mail) and single-piece rate Standard Mail 
(single-piece rate Standard Mail (A), parcel post, Special Standard 
Mail, and bound printed matter)''; in 12.8, replace ``Third- or fourth-
class'' with ``Standard Mail''; in 12.9, replace ``Third- and fourth-
class'' with ``Standard Mail''; in 15.2a, replace ``First-, third-, and 
fourth-class'' with ``First-Class and Standard Mail''; no other change 
in text.]

E070  Mixed Classes

[In 2.1, 2.2, 2.3, 3.3, and 3.4, replace ``First- or [T]hird-[C]lass 
[[M]ail]'' with ``First-Class Mail or Standard Mail (A)''; in 2.1, 
replace ``second-, third-, or fourth-class'' with ``Periodicals or 
Standard Mail (A) or (B)''; in 2.4, 2.5, 3.1, 3.2b, 3.5, 3.6, 4.2, and 
5.0, replace ``[T]hird-[C]lass [Mail]'' with ``Standard Mail (A)''; in 
3.0 (heading), 3.1, 3.2, 3.2a, 3.2c, 3.2e, and 5.0 (heading), replace 
``[S]econd-[C]lass'' with ``Periodicals''; in 3.3, replace ``comparable 
First- or third-class presort rate'' with ``comparable First-Class Mail 
or Standard Mail (A) rate''; in 4.0 (heading), replace ``Third- or 
Fourth-Class Parcels'' with ``Standard Mail Parcels''; in 4.1, replace 
``with third- or fourth-class mail'' with ``in pieces of Standard 
Mail''; in 4.2, 5.0,and 6.0 (heading), replace ``[F]ourth-[C]lass'' 
with ``Standard Mail (B)''; in 4.2, replace the reference ``E400'' with 
``E600''; in 6.1, replace ``special fourth-class'' with ``Special 
Standard Mail''; no other change in text.]
* * * * *

E100  First-Class Mail

[Insert text of current E110; revise as follows:]

E110  Basic Standards

1.0  Classification and Description
* * * * *

1.2  Written or Typewritten Matter

    Matter wholly or partially in writing or typewriting must be mailed 
as First-Class Mail or Express Mail, except authorized additions to 
Periodicals or Standard Mail and written or typewritten matter in 
Library Mail and Special Standard Mail, as permitted by the 
corresponding standards.
* * * * *
3.0  Rates for Postal Cards and Postcards
* * * * *

3.3  Card Rates

    To be eligible for the card rates, a postcard or postal card (and 
each part of a double postcard or double postal card) must meet the 
physical standards in C100. The reply part of a double postcard does 
not have to bear postage when originally mailed, but it must bear 
postage at the applicable rate when returned. Cards not meeting the 
standards for card rates must be paid at the rates for matter other 
than cards.
* * * * *
[Remove text of current 4.0 and 5.0; renumber 6.0 and 7.0 as 4.0 and 
5.0, respectively.]
4.0  Fees
[Revise the heading and text of renumbered 4.1 as follows:]

4.1  Presort Mailing

    A First-Class presort mailing fee must be paid once each 12-month 
period at each office of mailing by any person or organization entering 
mailings at automation or Presorted First-Class rates and/or Presorted 
Priority Mail rates. Payment of one fee allows a mailer to enter mail 
at all those rates. Persons or organizations paying this fee may enter 
mail of their clients as well as their own mail.
* * * * *
[Revise renumbered 5.0 as follows:]
5.0  Documentation
    A postage statement, completed and signed by the mailer, using the 
correct USPS form or an approved facsimile, must be submitted with each 
mailing except for single-piece First-Class or single-piece Priority 
Mail mailings in which the correct postage is affixed to each piece. 
Supporting documentation might be required by the standards for the 
rate claimed or the postage payment method used.
* * * * *
[Replace text of current E131 with new E130 as follows:]

E130  Nonautomation First-Class Mail Rates

1.0  Basic Standards

1.1  All Pieces

    All pieces of nonautomation First-Class Mail must:
    a. Meet the basic standards for First-Class Mail in E110.
    b. Weigh 11 ounces or less.
    c. Bear a delivery address.
    d. Meet the applicable documentation and postage payment standards 
in P012, P013, and P100.

1.2  Barcodes

    Any POSTNET barcode on a mailpiece in a nonautomation First-Class 
mailing must be the correct barcode for the delivery address and meet 
the standards in C840 and A950.

1.3  Nonstandard Surcharge

    Single-piece or Presorted First-Class Mail is subject to a 
nonstandard surcharge if it is not mailed at the card rate, weighs 1 
ounce or less, and meets the definition of nonstandard mail in C100.
2.0  Single-Piece Rate
    The single-piece card rate applies to any card meeting the 
applicable standards in C100 that is not eligible for or claimed at 
Presorted or automation First-Class rates. The single-piece rate 
applies to any other First-Class Mail weighing 11 ounces or less that 
is not eligible for or claimed at the single-piece card rate, the 
Presorted First-Class rate, or an automation First-Class rate.
3.0  Presorted Rate

3.1  Letters

    In addition to the standards in 1.0, all pieces in a Presorted 
First-Class rate mailing must:
    a. Be part of a single mailing of at least 500 pieces of Presorted 
First-Class Mail, subject to 3.2.
    b. Be in the same processing category and meet the applicable 
physical standards in C100.
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code and that meets the corresponding standards for accuracy and 
maintenance in 3.3 and 3.4.
    d. Be marked, sorted, and documented as specified in M130.

3.2  Cards and Letters

    Cards claimed at card rates must meet the physical standards for 
card rates in C100. Pieces claimed at card rates and pieces claimed at 
letter rates are subject to separate minimum volume criteria, but may 
be combined in the same mailing and reported on the same postage 
statement.

3.3  Address Quality

    Effective January 1, 1997, addresses appearing on all pieces 
claimed at the Presorted rate must be updated within 6 months before 
the mailing date by a USPS-approved address update tool (e.g., the 
``Address Correction

[[Page 10123]]
Endorsement,'' ACS, or NCOA). Additional alternatives currently under 
development (such as FASTFORWARDSM) may be used to meet this 
requirement when they have received final approval. Mailers must 
certify that this standard has been met when the corresponding mail is 
presented to the USPS. This standard applies to each address 
individually, not to a specific list or mailing. An address meeting 
this standard may be used in mailings at any other rate to which the 
standard applies throughout the 6-month period following its most 
recent update.

3.4  ZIP Code Accuracy

    Effective October 1, 1996, 5-digit ZIP Codes included in addresses 
appearing on pieces claimed at the Presorted rate must be verified and 
corrected within 12 months before the mailing date by a USPS-approved 
method. Mailers must certify that this standard has been met when the 
corresponding mail is presented to the USPS. This standard applies to 
each address individually, not to a specific list or mailing. An 
address meeting this standard may be used in mailings at any other rate 
to which the standard applies throughout the 12-month period following 
its most recent update.

[Remove E132.]

[Replace text of current E142, E144, E145, E147, E148, and E149 with 
new E140 as follows:]

E140  Automation First-Class Mail Rates

1.0  Basic Standards

1.1  All Pieces

    All pieces in a First-Class automation rate mailing must:
    a. Meet the basic standards for First-Class Mail in E110.
    b. Be part of a single mailing of at least 500 pieces of automation 
rate First-Class Mail, subject to 1.2.
    c. Be in the same processing category and meet the applicable 
physical standards in C810 or C820.
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC).
    e. Meet the address quality and coding standards in 1.3, 1.4 (if 
applicable), A800, and A950.
    f. Bear an accurate barcode meeting the standards in C840, either a 
DPBC (if a card or letter) or a ZIP+4 barcode or DPBC (if a flat), 
either on the piece or on an insert showing through a barcode window.
    g. Be marked, sorted, and documented as specified in M810 or M820, 
as applicable.
    h. Meet the applicable documentation and postage payment standards 
in P012, P013, and P100.

1.2  Cards and Letters

    Cards claimed at card rates must meet the physical standards for 
card rates in C100. Pieces claimed at card rates and pieces claimed at 
letter rates are subject to separate minimum volume criteria, but may 
be combined in the same mailing and reported on the same postage 
statement.

1.3  Address Quality

    Effective January 1, 1997, addresses appearing on all pieces 
claimed at automation rates must be updated within 6 months before the 
mailing date by a USPS-approved address update tool (e.g., the 
``Address Correction Endorsement,'' ACS, or NCOA). Additional 
alternatives currently under development (such as FASTFORWARD SM) 
may be used to meet this requirement when they have received final 
approval. Mailers must certify that this standard has been met when the 
corresponding mail is presented to the USPS. This standard applies to 
each address individually, not to a specific list or mailing. An 
address meeting this standard may be used in mailings at any other rate 
to which the standard applies throughout the 6-month period following 
its most recent update.

1.4  Carrier Route Presort

    Carrier route rates are available only for letter-size mail and 
only for those 5-digit ZIP Code areas identified in the USPS City/State 
File used for address coding. Subject to A930 and A950, mailers must 
apply carrier route codes to mailings using CASS-certified software and 
the current USPS Carrier Route Information System (CRIS) scheme or 
another AIS product containing carrier route information. Carrier route 
and City/State File information must be updated within 90 days before 
the mailing date.

1.5  Enclosed Reply Cards and Envelopes

    Effective January 1, 1997, all courtesy reply and business reply 
mail (BRM) cards and letter-size envelopes provided as enclosures in 
First-Class automation mail must meet the standards in C810 for 
enclosed reply cards and envelopes. Mailers must certify that this 
standard has been met when the corresponding mail is presented to the 
USPS.
2.0  Rate Application

2.1  Letters or Cards

    First-Class automation rates apply to each piece that is sorted 
under M810 into the corresponding qualifying groups:
    a. Subject to 1.4, pieces in full carrier route trays, or in 
carrier route groups of 10 or more pieces each placed in 5-digit 
carrier routes trays, qualify for the Carrier Route automation rate. 
(Preparation to qualify for that rate is optional and need not be 
performed for all carrier routes in a 5-digit area.)
    b. Groups of 150 or more pieces in 5-digit trays qualify for the 5-
Digit automation rate. (Preparation to qualify for that rate is 
optional and need not be performed for all 5-digit destinations.)
    c. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
qualify for the 3-Digit automation rate.
    d. Pieces in AADC and mixed AADC trays qualify for the Basic 
automation rate.

2.2  Flats

    First-Class automation rates apply to each piece that is sorted 
under M820 into the corresponding qualifying groups:
    a. Pieces in 5-digit or 3-digit packages of 10 or more pieces each 
qualify for the 3/5 automation rate.
    b. Pieces in ADC or mixed ADC packages qualify for the Basic 
automation rate.

[Revise the heading of E200 as follows:]

E200  Periodicals

E210  Basic Standards

[Revise the heading of E211 as follows:]

E211  Standards Applicable to All Periodicals Publications

[Renumber current 1.1 and 1.2 as 1.2 and 1.3, respectively; in 
renumbered 1.3, and in 2.1, 3.0, 4.1, 5.1, 6.1, 6.2, 7.2, 7.4, 7.5, 
8.1, 8.2, 9.0, 11.1, and 12.0, replace ``second-class [mail]'' with 
``Periodicals''; in 1.1, 4.1, 5.3, 7.4, 7.5, 10.2, and 13.1a, replace 
``second-class mail privileges'' with ``Periodicals mailing 
privileges''; in 6.1 and 9.0, replace ``First-, third-, or fourth-class 
rates'' with ``First-Class or Standard Mail rates''; add new 1.1 and 
revise other text as follows:]
1.0  Basic Information

1.1  Second-Class

    Effective July 1, 1996, second-class mail was renamed Periodicals. 
This name change does not alter the status of authorized publications; 
second-class mailing privileges are now referred to as

[[Page 10124]]
Periodicals mailing privileges and have comparable eligibility 
standards.
* * * * *
10.0  Identification
* * * * *

10.4  Bound Publication

    In a bound publication (one secured with two or more staples, 
spiral binding, glue, stitching, or other permanent fastening), the 
identification statement must be shown conspicuously as described in 
10.3 or on one of the last three editorial pages inside the back cover. 
If the publication is mailed with a permissible nonincidental enclosure 
paid with permit imprint, the identification statement must be located 
as specified in 10.3.

10.5  Identification Statement Content

    The identification statement must contain:
* * * * *
    g. The imprint ``Periodicals Postage Paid at * * *'' or, if mailed 
at two or more offices, ``Periodicals Postage Paid at * * * and at 
additional mailing offices.'' A notice of pending application is shown 
instead if copies are mailed while an application is pending: 
``Application to Mail at Periodicals Postage Rates is Pending at * * 
*.''
* * * * *
14.0  Basic Rate Eligibility

14.1  Regular Rates

    Regular rates apply to all copies of an authorized Periodicals 
publication mailed by a publisher or news agent, except nonrequester 
and nonsubscriber copies under E215, unless the publication is 
authorized a preferred rate. Mailings are also subject to the standards 
that apply to rates or discounts claimed. Regular rates consist of a 
per piece charge, a zoned charge for the weight of the advertising 
portion of the publication, and an unzoned charge for the weight of the 
nonadvertising portion. Each piece rate requires specific preparation.

14.2  Preferred Rates

    Preferred rates consist of the in-county rates and the special 
rates (nonprofit, classroom, and science-of-agriculture). Requester 
publications are not eligible for preferred rates. Copies of authorized 
Periodicals publications mailed at any preferred rate must meet the 
corresponding eligibility standards. Nonsubscriber copies mailed at 
preferred rates are subject to the standards in E215 and E270 and those 
applicable to other rates or discounts claimed. Preferred rates consist 
of a per piece charge, a zoned charge for the weight of the advertising 
portion of the publication, and an unzoned charge for the weight of the 
nonadvertising portion, except that in-county rates apply without 
differentiation to the advertising and nonadvertising portions. Each 
piece rate requires specific preparation.

14.3  Discounts and Adjustments

    Postage for Periodicals publications is reduced by all applicable 
discounts and adjustments:
    a. The nonadvertising adjustment applies to the outside-county 
piece rate charges for Regular and Preferred Periodicals publications 
and is computed as described in P013.
    b. Presort discounts are available for Regular and Preferred 
Periodicals, subject to E230.
    c. Automation discounts are available for Regular and Preferred 
Periodicals, subject to E240.
    d. Destination entry discounts are available for copies of a 
Periodicals publication entered by the publisher at specific USPS 
facilities, subject to E250.

14.4  Copies Mailed by Public

    The applicable single-piece First-Class or Standard Mail rate is 
charged on copies of publications mailed by the general public (i.e., 
other than publishers or registered news agents) and on copies returned 
to publishers or news agents.

E212  Additional Standards for Qualification Categories

[In 1.1, 5.1, 5.3, 6.1, and 6.2, replace ``second-class [mail]'' with 
``Periodicals''; in 1.3, 2.1, 2.2, 2.3, 3.1, 5.1, and 5.3, replace 
``second-class [mail] privileges'' with ``Periodicals mailing 
privileges''; in 6.5, replace ``third- or fourth-class rates'' with 
``Standard Mail rates.'']

[Revise the heading of E213 as follows:]

E213  Periodicals Mailing Privileges

[In 1.6b, 2.1, 3.5, and 3.6f, replace ``second-class [mail]'' with 
``Periodicals''; in 1.1, 1.2, 1.3, 1.4, 1.5, 1.9, 2.1, 3.1, 3.4, 3.5, 
4.0 (heading), 4.1, 4.2, and 4.3, replace ``[S]econd-[C]lass [[M]ail] 
[P]rivileges'' with ``Periodicals [M]ailing [P]rivileges''; in 2.1, 
replace ``First-, third-, or fourth-class rates'' with ``First-Class or 
Standard Mail rates''; in 2.2, replace ``third- or fourth-class rates'' 
with ``Standard Mail rates''; in 3.7 and 4.3, replace ``under 39 CFR 
954, Rules of Practice in Proceedings Relative to the Denial, 
Suspension, or Revocation of Second-Class Mail Privileges, a copy of 
which'' with ``under 39 CFR 954, a copy of which''; no other change.]

E214  Reentry

[In 1.1, 1.2, 1.3, 2.2, 3.1, 3.3, 3.6, and 3.10, replace ``second-
class'' with ``Periodicals.'' In 2.1, replace ``second-class mail 
privileges'' with ``Periodicals mailing privileges.'' In 3.10, replace 
``third- or fourth-class postage'' with ``Standard Mail postage''; in 
3.12, replace ``under 39 CFR 954, Rules of Practice in Proceedings 
Relative to the Denial, Suspension, or Revocation of Second-Class Mail 
Privileges, a copy of which'' with ``under 39 CFR 954, a copy of 
which''; no other change.]
* * * * *
3.0  Applications for Reentry
* * * * *

3.9  During Appeal

    During the appeal:
    a. Copies of any issue of a publication denied reentry under 1.0 
and found unqualified for Periodicals mailing privileges are accepted 
in a pending status at the applicable Standard Mail rates. For this 
standard, the pending status begins when the appeal is filed and 
continues until the end of the appeal process.
    b. Copies of a publication denied reentry under 2.0 are accepted at 
the currently applicable Periodicals rate.
    c. The publisher must submit the applicable Periodicals and 
Standard Mail postage statements with each mailing of the publication 
in a pending status. Failure to submit these statements is sufficient 
grounds to deny a postage refund under 3.12.
* * * * *

E215  Copies Not Paid or Requested by Addressee

[In 1.8, 2.1, 2.2, 2.6, and 2.7, replace ``second-class'' with 
``Periodicals''; in 1.6, replace ``second-class privileges'' with 
``Periodicals mailing privileges''; in 2.6, replace ``Express Mail, or 
First-, third-, or fourth-class rates, as appropriate'' with ``the 
appropriate Express Mail, First-Class Mail, or Standard Mail rate'' and 
``third- or fourth-class rates'' with ``Standard Mail rates''; in 2.7, 
replace ``Express Mail, or First-, third-, or fourth-class rate'' with 
``Express Mail, First-Class Mail, or Standard Mail rate.'']

E216  Publisher Records

[Redesignate and revise text of current E216.3.0 as M210; renumber 
current E216.4.0 and E216.5.0 as E216.3.0 and E216.4.0, respectively; 
in renumbered 3.1, 3.4, 4.1, and 4.2, replace ``second-class'' with 
``Periodicals''; in 1.1, 2.2,

[[Page 10125]]
and renumbered 3.2 and 3.3, replace ``second-class mail privileges'' 
with ``Periodicals mailing privileges.'']

E217  Authorization for Preferred Rates

[In 1.3, 2.1, 2.2, 3.4, 3.5c, and 3.5g, replace ``second-class'' with 
``Periodicals''; in 1.2, 2.1, 2.2, replace ``second-class [mail] 
privileges'' with ``Periodicals mailing privileges''; in 2.1, replace 
``First-, third-, or fourth-class rates'' with ``First-Class or 
Standard Mail rates''; in 2.2, replace ``third- or fourth-class 
postage'' with ``Standard Mail postage''; in 3.4, replace ``third- or 
fourth-class rates'' with ``Standard Mail rates.'']

[Replace text of current 230 with new E231 and E239 as follows:]

E230  Nonautomation Periodicals

[Remove E230.1.0 through E230.6.0; insert new E231 as follows:]

E231  Nonautomation Regular Periodicals

1.0  General Information

1.1  Standards

    The standards for presort rates are in addition to the basic 
standards for Periodicals in E210, the standards for other rates or 
discounts claimed, and the applicable preparation standards in M210, 
M810, or M820. Not all combinations of presort level, automation, and 
destination entry discounts are permitted.

1.2  Palletized Mail

    A correctly prepared package is the equivalent of a sack when 
palletized under M045. Individual pieces qualify for the presort level 
rate appropriate for the palletized package in which they are placed, 
regardless of the destination of the pallet. Eligibility for 
destination entry or other zoned rates depends on the point of entry.

1.3  ZIP Code Accuracy

    Effective October 1, 1996, 5-digit ZIP Codes included in addresses 
appearing on pieces claimed at the 3/5 or Basic rates must be verified 
and corrected within 12 months before the mailing date by a USPS-
approved method. Mailers must certify that this standard has been met 
when the corresponding mail is presented to the USPS. This standard 
applies to each address individually, not to a specific list or 
mailing. An address meeting this standard may be used in mailings at 
any other rate to which the standard applies throughout the 12-month 
period following its most recent update.
2.0  Carrier Route Rates

2.1  Carrier Route Information

    Subject to A930 and A950, mailers must apply carrier route codes to 
mailings using CASS-certified software and the current USPS Carrier 
Route Information System (CRIS) scheme or another AIS product 
containing carrier route information. Carrier route information must be 
updated within 90 days before the mailing date.

2.2  Eligibility

    Preparation to qualify eligible pieces for carrier route rates is 
optional and is subject to M210. Carrier route sort need not be 
performed for all carrier routes in a 5-digit area. Specific rate 
eligibility is subject to these standards:
    a. The basic carrier route rate applies to pieces in carrier route 
packages of six or more pieces each that are sorted to carrier route or 
carrier routes trays (letter-size pieces) or sacks (flat-size pieces).
    b. The high density and saturation rates apply to pieces that are 
eligible for the basic carrier route rate, are prepared in carrier walk 
sequence, and meet the applicable density standards in 5.0 for the rate 
claimed.
3.0  3/5 Rates
    Subject to M210, 3/5 rates apply to:
    a. Letter-size pieces in 5-digit or unique 3-digit packages of six 
or more pieces each, either placed in 5-digit or unique 3-digit trays 
containing at least 24 pieces or in an overflow unique 3-digit tray.
    b. Flat-size pieces in 5-digit or unique 3-digit packages of six or 
more pieces each, either placed in 5-digit or unique 3-digit sacks or 
palletized under M045.
4.0  Basic Rates
    Basic rates apply to pieces prepared under M210 but not eligible 
for or claimed at either the carrier route or 3/5 rates.
5.0  Walk-Sequence Discounts--Regular Periodicals
[Insert text of current E230.7.0 and E230.8.0; redesignate and renumber 
as E231.5.0 and E231.6.0, respectively; in renumbered 5.4b and 5.4d, 
replace ``125-piece walk-sequence rate'' with ``high density/125-piece 
walk-sequence rate''; in renumbered 5.4b, replace the reference 
``7.4d'' with ``5.4d'' and the reference ``7.4c'' with ``5.4c''; in 
renumbered 5.4d, replace the reference ``7.4b'' with ``5.4b''; in 
renumbered 6.1 and 6.2, replace ``second-class'' with ``Periodicals''; 
revise other text as follows:]

5.1  Eligibility

    The 125-piece or saturation walk-sequence rates apply to each walk-
sequenced piece in a carrier route mailing, eligible under 2.2 and 
prepared under M210, that also meets the corresponding addressing and 
density standards in 5.4.
* * * * *

E239  Nonautomation Preferred Periodicals

1.0  General Information

1.1  Standards

    The standards for presort rates are in addition to the basic 
standards for Periodicals in E210, the standards for other rates or 
discounts claimed, and the applicable preparation standards in M290 or 
M890. Not all combinations of presort level, automation, and 
destination entry discounts are permitted.

1.2  Optional Preparation

    At the mailer's option, Preferred Periodicals may be prepared under 
the standards for Regular Periodicals in M210, including presort. Under 
this option, Preferred Periodicals may claim Level I/K, Level H, or 
Level G/J rates, and may be combined (comailed) with Regular 
Periodicals in the same mailing, if all corresponding eligibility 
standards in E231 for Carrier Route, 3/5, and Basic are met. Presort 
rate eligibility for the mailing is based on the combined pieces.

1.3  Palletized Mail

    A correctly prepared package is the equivalent of a sack when 
palletized under M045. Individual pieces qualify for the presort level 
rate appropriate for the palletized package in which they are placed, 
regardless of the destination of the pallet. Eligibility for 
destination entry or other zoned rates depends on the point of entry.

1.4  Reporting Presort Level

    Publishers must separately report copies at Levels H3 and H5, and 
Levels J1, J3, and J5, only when claiming a ZIP+4 or ZIP+4 Barcoded 
rate.
2.0  Carrier Route (Level I/K) Rates

2.1  Rate Application

    Level I/K rates apply as follows:
    a. Level I1 or K1 rates apply to pieces in carrier route packages 
of six or more pieces each that are sorted to carrier route or carrier 
routes trays or sacks.
    b. Level I2 or K2 rates apply to pieces eligible for the Level I1 
or K1 rates that are further prepared in carrier delivery walk sequence 
and in the density

[[Page 10126]]
necessary to meet the additional standards in 6.0 for the 125-piece 
walk-sequence rate.
    c. Level I3 or K3 rates apply to pieces eligible for the Level I1 
or K1 rates that are further prepared in carrier delivery walk sequence 
and in the density necessary to meet the additional standards in 6.0 
for the saturation walk-sequence rate.

2.2  Carrier Route Information

    Mailers must apply carrier route codes to mailings by using the 
current USPS Carrier Route Information System (CRIS) scheme or another 
AIS product containing carrier route information (see A930). Carrier 
route information must be updated within 90 days before the mailing 
date.
3.0  3- and 5-Digit (Level H) Rates

3.1  H Rates

    Level H rates apply to pieces in 5-digit, optional city, and unique 
3-digit packages of six or more pieces each that are sorted to 5-digit, 
optional city, or unique 3-digit sacks.

3.2  H5 Rates

    Level H5 rates apply:
    a. In tray-based automation rate letter-size mailings, to pieces in 
5-digit trays.
    b. In package-based automation rate letter-size mailings, to pieces 
in 5-digit packages of 10 or more pieces each placed in 5-digit, 
optional city, 3-digit, SCF, or AADC trays.
    c. In ZIP+4 Barcoded rate flat-size mailings, to pieces in 5-digit 
packages of six or more pieces each placed in 5-digit, optional city, 
3-digit, SCF, or ADC sacks or palletized under M045.
    d. In other mailings, to pieces in 5-digit packages of six or more 
pieces each placed in 5-digit, optional city, or unique 3-digit sacks.

3.3  H3 Rates

    Level H3 rates apply:
    a. In tray-based automation rate letter-size mailings, to pieces in 
optional city and unique 3-digit trays.
    b. In package-based automation rate letter-size mailings, to pieces 
in optional city and unique 3-digit packages of 50 or more pieces each 
placed in optional city, 3-digit, SCF, or AADC trays.
    c. In ZIP+4 Barcoded rate flat-size mailings, to pieces in optional 
city and unique 3-digit packages of six or more pieces each placed in 
optional city, 3-digit, SCF, or ADC sacks or palletized under M045.
    d. In other mailings, to pieces in optional city or unique 3-digit 
packages of six or more pieces each placed in optional city or unique 
3-digit sacks.
4.0  Basic (Level G) Rates
    Level G rates apply to pieces not eligible for or claimed at the 
rates in 2.0 or 3.0.
5.0   In-County (Level J) Rates
[Insert text of current E230.5.0 and redesignate as E239.5.0; in 5.2c 
and 5.3c, replace ``SDC'' with ``ADC.'']
6.0  Walk-Sequence Discounts
[Insert text of current E230.7.0 and redesignate and renumber as 
E239.6.0; in renumbered 6.1, replace the references ``M203 and M204'' 
and ``7.4'' with ``M290'' and ``6.4,'' respectively; in renumbered 6.4b 
and 6.4d, replace ``125-piece walk-sequence rate'' with ``high density/
125-piece walk-sequence rate''; in renumbered 6.4b, replace the 
reference ``7.4d'' with ``6.4d''; in renumbered 6.4d, replace the 
reference ``7.4b'' with ``6.4b''; no other change to text.]

E240  Automation Periodicals Rates

[Insert new E241 as follows:]

E241  Automation Regular Periodicals

1.0  BASIC STANDARDS

1.1  All Pieces

    All pieces in a automation Regular Periodicals mailing must:
    a. Meet the basic standards for Periodicals and for the category of 
authorization in E211 and E212, respectively.
    b. Be in the same processing category and meet the applicable 
physical standards in C810 or C820. (Automation rate mailings may not 
include firm packages.)
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), 
the numeric equivalent to the DPBC).
    d. Meet the address quality and coding standards of A800 and A950.
    e. Be sorted and documented as specified in M810 or M820, as 
applicable.
    f. Meet the applicable documentation and postage payment standards 
in P012, P013, and P200.
    g. Bear an accurate barcode meeting the standards in C840, either a 
DPBC (if a letter) or a ZIP+4 barcode or DPBC (if a flat), either on 
the piece or on an insert showing through a barcode window.

1.2  Enclosed Reply Cards and Envelopes

    Effective January 1, 1997, all courtesy reply and business reply 
mail (BRM) cards and letter-size envelopes provided as enclosures in 
automation rate Regular Periodicals must meet the standards in C810 for 
enclosed cards and envelopes. Mailers must certify that this standard 
has been met when the corresponding mail is presented to the USPS.
2.0  Rate Application

2.1  Letters

    Automation rates apply to each letter-size piece that is sorted 
under M810 into the corresponding qualifying groups:
    a. Groups of 150 or more pieces in 5-digit or unique 3-digit trays 
qualify for the 3/5 automation rate. Pieces for unique 3-digit 
destinations do not qualify for the 3/5 automation rate if placed in 3-
digit scheme trays with pieces for nonunique 3-digit destinations.
    b. Groups of 150 or more pieces in other 3-digit, 3-digit scheme, 
AADC, or mixed AADC trays qualify for the Basic automation rate.

2.2  Flats

    Automation rates apply to each flat-size piece that is sorted under 
M820 into the corresponding qualifying groups:
    a. Pieces in 5-digit or unique 3-digit packages of 6 or more pieces 
each qualify for the 3/5 automation rate.
    b. Pieces in other 3-digit, ADC, or mixed ADC packages qualify for 
the Basic automation rate.

E249  Automation Preferred Periodicals

[Insert text of current E242, E244, and E245 and redesignate and 
renumber as E249.1.0, E249.2.0, and E249.3.0, respectively, with 
subsections redesignated accordingly; no change in text except to 
replace ``second-class [mail]'' with ``Periodicals.'']
1.0  Zip+4 Discounts

1.1  All Pieces

    All pieces in a Preferred Periodicals ZIP+4 rate mailing must:
    a. Meet the basic standards for Periodicals and for the category of 
authorization in E211 and E212, respectively.
    b. Meet the physical standards in C810.
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), 
the numeric equivalent to the DPBC).
    d. Meet the address quality and coding standards of A800 and A950.
    e. Meet the standards in C830 or, for pieces with the correct DPBC, 
the barcode standards in C840.
    f. Be sorted and documented as specified in M891 or M892.
    
[[Page 10127]]

    g. Meet the postage payment standards in P013 and P200.

1.2  Rate Application

    ZIP+4 rates apply to each piece that also:
    a. Is sorted under M810 into the qualifying groups described in 1.7 
and 1.8.
    b. Bears a delivery address with the correct numeric ZIP+4 code or 
bears the correct DPBC.

1.3  Barcode Window

    A mailpiece meeting the standards in 1.1 and 1.2, but with a 
barcode window in the lower right corner, is ineligible for any 
automation rate unless the correct DPBC appears through that window.

1.4  5-Digit Barcodes

    ZIP+4 rate mailings may include pieces with correct 5-digit 
barcodes if those pieces meet the standards in 1.1 and 1.2 and the 
standards for 5-digit barcodes in C840. Such pieces qualify for ZIP+4 
rates only if the barcode is printed on the piece and the address 
contains the correct numeric ZIP+4 code.

1.5  ZIP+4 Barcodes

    ZIP+4 rate mailings may include pieces with correct ZIP+4 barcodes 
if the barcode is located in the address block and those pieces meet 
the standards in 1.1 and 1.2 and the standards for ZIP+4 barcodes in 
C840. Such pieces qualify for ZIP+4 rates only if, additionally, the 
address contains the correct numeric ZIP+4 code. Pieces that bear a 
ZIP+4 barcode in the lower right corner may not be included in a ZIP+4 
rate mailing.

1.6  85% Rule

    At least 85% of all pieces in a ZIP+4 rate mailing (regardless of 
presort level or rate) must bear the correct numeric ZIP+4 code or DPBC 
for the delivery address, as defined by the standards for address 
quality and coding accuracy in A800 and A950. The 85% requirement 
applies to each mailing unless excepted by other standards.

1.7  Qualifying Tray-Based Presort

    In tray-based mailings under M891:
    a. In full or overflow 5-digit trays, ZIP+4 coded or DPBC pieces 
qualify for the Level H5/J5 ZIP+4 rates; other pieces qualify for the 
Level H5/J5 rates.
    b. In full or overflow optional city and unique 3-digit trays, 
ZIP+4 coded or DPBC pieces qualify for the Level H3/J3 ZIP+4 rates; 
other pieces qualify for the Level H3/J3 rates.
    c. In full or overflow nonunique 3-digit and SCF trays, ZIP+4 coded 
or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces 
qualify for the Level G/J1 rates. One less-than-full SCF tray is 
permitted for the SCF serving the post office where the mailing is 
entered.
    d. In AADC, mixed AADC, and working trays, ZIP+4 coded or DPBC 
pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for 
the Level G/J1 rates.

1.8  Qualifying Package-Based Presort

    In package-based mailings under M892:
    a. In 5-digit packages of 10 or more pieces each, ZIP+4 coded or 
DPBC pieces qualify for the Level H5/J5 ZIP+4 rates; other pieces 
qualify for the Level H5/J5 rates.
    b. In optional city and unique 3-digit packages of 50 or more 
pieces each, ZIP+4 coded or DPBC pieces qualify for the Level H3/J3 
ZIP+4 rates; other pieces qualify for the Level H3/J3 rates.
    c. In nonunique 3-digit packages of 50 or more pieces each, ZIP+4 
coded or DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other 
pieces qualify for the Level G/J1 rates.
    d. In the residual portion of the mailing, ZIP+4 coded or DPBC 
pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for 
the Level G/J1 rates.
2.0  Barcoded Discounts (Letter-Size Pieces)

2.1  All Pieces

    All pieces in a Barcoded rate letter-size mailing must:
    a. Meet the basic standards for Periodicals and for the category of 
authorization in E211 and E212, respectively.
    b. Meet the physical standards in C810.
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), 
the numeric equivalent to the DPBC).
    d. Meet the address quality and coding standards of A800 and A950.
    e. Either bear the correct DPBC meeting the barcode standards in 
C840 or meet the applicable standards in 2.5.
    f. Be sorted and documented as specified in M893, M894, or M895.
    g. Meet the postage payment standards in P013 and P200.

2.2  Rate Application

    Barcoded rates apply to each piece that also:
    a. Is sorted under M893, M894, or M895 into the qualifying groups 
described in 2.8, 2.9, and 2.10.
    b. Bears the correct DPBC that meets the barcode standards in C840.
    c. Meets the applicable standards in 2.4 through 2.7.

2.3  Optional Preparation

    At the mailer's option, barcoded Preferred Periodicals may be 
prepared under the standards for Regular Periodicals in M810, including 
presort. Under this option, Preferred Periodicals may claim Level H or 
Level G/J rates and may be combined (comailed) with Regular Periodicals 
in the same mailing, if all corresponding eligibility standards in E231 
and E241 for 3/5 and Basic rate are met. Presort rate eligibility for 
the mailing is based on the combined pieces.

2.4  Barcode Window

    A mailpiece with a barcode window in the lower right corner is 
ineligible for an automation rate unless the correct DPBC appears 
through that window.

2.5  Pieces Without DPBCs

    Subject to 1.5 and 1.6, Barcoded rate mailings may include 
nonbarcoded, 5-digit barcoded, or ZIP+4 barcoded pieces if each such 
piece (regardless of rate) meets the standards in 2.1, has a barcode 
clear zone in the lower right corner meeting the reflectance standards 
in C840 and, if applicable, meets the applicable 5-digit or ZIP+4 
barcode standards in C840. Additionally, to qualify for a ZIP+4 rate, 
subject to 2.8, 2.9, and 2.10:
    a. Nonbarcoded and 5-digit barcoded pieces must bear an address 
with the correct ZIP+4 code, meet the standards in C830, and not have a 
window in the lower right corner.
    b. ZIP+4 barcoded pieces must have the barcode in the address 
block, meet the standards in C830, bear an address with the correct 
ZIP+4 code, and not have a window in the lower right corner.

2.6  85% Rule

    Subject to 2.7, at least 85% of all pieces in a Barcoded rate 
mailing (regardless of presort level or rate) must bear the correct 
DPBC for the delivery address, as defined by the standards for address 
quality and coding accuracy in A800 and A950. The 85% requirement 
applies to each mailing unless excepted by other standards.

2.7  100% Barcoding

    Each piece must bear the correct delivery point barcode:
    a. In 5-digit trays in a tray-based mailing under M893.
    b. In 5-digit packages in a package-based mailing under M894 or 
M895.
    c. In any mailing containing heavy letters (as defined in C810).
    
[[Page 10128]]


2.8  Qualifying Tray-Based Presort

    In tray-based mailings under M893:
    a. Pieces in full or overflow 5-digit trays qualify for the Level 
H5/J5 Barcoded rates.
    b. In full or overflow optional city and unique 3-digit trays, DPBC 
pieces qualify for the Level H3/J3 Barcoded rates; subject to 2.5, 
ZIP+4 coded non-DPBC pieces qualify for the Level H3/J3 ZIP+4 rate; 
other pieces qualify for the Level H3/J3 rates.
    c. In full or overflow nonunique 3-digit and SCF trays, DPBC pieces 
qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded 
non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other pieces 
qualify for the Level G/J1 rates. One less-than-full SCF tray is 
permitted for the SCF serving the post office where the mailing is 
entered.
    d. In AADC, mixed AADC, and working trays, DPBC pieces qualify for 
the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC 
pieces qualify for the Level G/J1 ZIP+4 rates; other pieces qualify for 
the Level G/J1 rates.

2.9  Qualifying Two-Tier Package-Based Presort

    In two-tier package-based mailings under M894:
    a. Pieces in 5-digit packages of 10 or more pieces each qualify for 
the Level H5/J5 Barcoded rates.
    b. In optional city and unique 3-digit packages of 50 or more 
pieces each, DPBC pieces qualify for the Level H3/J3 Barcoded rates; 
subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level H3/J3 
ZIP+4 rates; other pieces qualify for the Level H3/J3 rates.
    c. In nonunique 3-digit packages of 50 or more pieces each, DPBC 
pieces qualify for the Level G/J1 Barcoded rates; subject to 2.5, ZIP+4 
coded non-DPBC pieces qualify for the Level G/J1 ZIP+4 rates; other 
pieces qualify for the Level G/J1 rates.
    d. In residual trays, DPBC pieces qualify for the Level G/J1 
Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for 
the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 
rates.

2.10  Qualifying Three-Tier Package-Based Presort

    In three-tier package-based mailings under M895:
    a. Pieces in 5-digit packages of 10 or more pieces each in the 5-
digit tier qualify for the Level H5/J5 Barcoded rates.
    b. In optional city and unique 3-digit packages of 50 or more 
pieces each in the 3-digit tier, DPBC pieces qualify for the Level H3/
J3 Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify 
for the Level H3/J3 ZIP+4 rates; other pieces qualify for the Level H3/
J3 rates.
    c. In nonunique 3-digit packages of 50 or more pieces each in the 
3-digit tier, DPBC pieces qualify for the Level G/J1 Barcoded rates; 
subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Level G/J1 
ZIP+4 rates; other pieces qualify for the Level G/J1 rates.
    d. In the residual tier, DPBC pieces qualify for the Level G/J1 
Barcoded rates; subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for 
the Level G/J1 ZIP+4 rates; other pieces qualify for the Level G/J1 
rates.
3.0  Barcoded Discounts (Flat-Size Pieces)

3.1  All Pieces

    All pieces in a Barcoded rate flat-size mailing must:
    a. Meet the basic standards for Periodicals and for the category of 
authorization in E211 and E212, respectively.
    b. Meet the physical standards in C820.
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code.
    d. Meet the address quality and coding standards of A800 and A950.
    e. Bear the correct 5-digit barcode, ZIP+4 barcode, or DPBC, 
meeting the barcode standards in C840, except for pieces in specific 
portions of mailings prepared under M897.
    f. Be sorted and documented as specified in M897.
    g. Meet the postage payment standards in P013 and P200.

3.2  Rate Application

    Barcoded rates apply to each piece that also:
    a. Is sorted under M897 into the qualifying groups described in 
3.6.
    b. Bears the correct ZIP+4 barcode or DPBC.
    c. Meets the applicable standards in 3.3 through 3.5.

3.3  Optional Preparation

    At the mailer's option, barcoded Preferred Periodicals may be 
prepared under the standards for Regular Periodicals in M820, including 
presort. Under this option, Preferred Periodicals may claim Level H or 
Level G/J rates and may be combined (comailed) with Regular Periodicals 
in the same mailing, if all corresponding eligibility standards in E231 
and E241 for 3/5 and Basic rates are met. Presort rate eligibility for 
the mailing is based on the combined pieces.

3.4  5-Digit Barcodes

    Barcoded rate mailings may include pieces with correct 5-digit 
barcodes if those pieces meet the standards in 3.1, 3.2, 3.3, and 3.5 
and the standards for 5-digit barcodes in C840. Pieces with a 5-digit 
barcode could be eligible for a presort rate under 3.6.

3.5  85% Rule

    At least 85% of all pieces in a Barcoded rate mailing (regardless 
of presort level or rate) must bear the correct ZIP+4 barcode or DPBC 
for the delivery address, as defined by the standards for address 
quality and coding accuracy in A800 and A950. The 85% requirement 
applies to each mailing unless excepted by other standards. Barcoded 
rate mailings not meeting the 85% rule must be prepared under 
corresponding standards in M897.

3.6  Qualifying Presort

    Barcoded and presort rates apply as follows:
    a. In 5-digit packages of six or more pieces each, ZIP+4 barcoded 
or DPBC pieces qualify for the Level H5/J5 Barcoded rates; 5-digit 
barcoded pieces (and nonbarcoded pieces where permitted) qualify for 
the Level H5/J5 rates.
    b. In optional city or unique 3-digit packages of six or more 
pieces each, ZIP+4 barcoded or DPBC pieces qualify for the Level H3/J3 
Barcoded rates; 5-digit barcoded pieces qualify for the Level H3/J3 
rates.
    c. In nonunique 3-digit and SCF packages, or in 5-digit, optional 
city, or unique 3-digit packages of fewer than six pieces, or in 
residual packages, ZIP+4 barcoded or DPBC pieces qualify for the Level 
G/J1 Barcoded rates; 5-digit barcoded pieces qualify for the Level G/J1 
rates.

[Revise E250 as follows:]

E250  Destination Entry

1.0  DSCF

1.1  Eligibility

    Copies not eligible for in-county rates qualify for the destination 
SCF (DSCF) rates if the copies are addressed for delivery in the same 
SCF service area as the entry post office, regardless of the type of 
package, pallet, sack, or tray in which they are prepared.

1.2  Rates

    DSCF rates include a pound rate and a discount per piece. Pieces 
claimed at DSCF rates must also meet the standards for any discount or 
rate claimed and postage payment method used.

[[Page 10129]]


1.3  Authorized Entry

    Publications must have an authorized entry at each post office 
where mail is entered at DSCF rates. Only copies entered according to 
the distribution plan authorized for that entry may be claimed at these 
rates. DSCF rate mail must be deposited at locations and times 
specified by the entry office postmaster.

1.4  Documentation

    Subject to P012, the publisher must be able to show compliance with 
1.1 through 1.3, e.g., by package, bundle, sack, tray, or pallet 
destination (as appropriate), and the number of pieces by presort level 
for each 5-digit ZIP Code destination eligible for DSCF rates.

2.0  DDU

2.1  Eligibility

    The destination delivery unit (DDU) rate applies to pieces entered 
at the facility where the carrier cases mail for the carrier route 
serving the delivery address on the mailpiece. Copies claimed at DDU 
rates must be part of a carrier route package placed in a carrier route 
or 5-digit carrier routes sack or tray under M210, or palletized under 
M045, and otherwise eligible for and claimed at a carrier route or 
Level I or K rate. Except for the standards applicable to preparing 
carrier route or walk-sequence rate mail, there is no additional 
minimum volume required for a DDU rate mailing.

2.2  Rates

    DDU rates include a pound rate and a discount per piece. Pieces 
claimed at DDU rates must also meet the standards for any discount or 
rate claimed and postage payment method used. A mailing may contain 
copies claimed at DDU rates and other copies claimed at other rates if 
permitted by standard. No separation by rate is required.

2.3  Maximum Volume

    Except under 2.4, the same mailer may not present for verification 
and acceptance more than four DDU rate mailings at the same destination 
postal facility (or another acting as its agent) in any 24-hour period. 
This limit may be waived if local conditions permit. A mailer may ask 
for such a waiver when scheduling deposit of the mailings. There is no 
maximum for plant-verified drop shipments. This standard does not apply 
to mailings presented to either the publication's authorized original 
entry post office or an authorized additional entry serving the place 
where the copies were prepared for mailing, if that entry post office 
is the destination postal facility at which the DDU rate copies must be 
deposited.

2.4  Authorized Entry

    Publications must have an authorized entry at each post office 
where mail is entered at DDU rates. Only copies entered according to 
the distribution plan authorized for that entry may be claimed at these 
rates. DDU rate mail must be deposited at locations and times specified 
by the entry office postmaster.

2.5  Scheduling

    Mailers may schedule deposit of DDU rate mailings at least 24 hours 
in advance by contacting the district office in whose service area the 
destination facility is located. Mailers must follow the scheduled 
deposit time provided. Mailers may request standing appointments for 
renewable 6-month periods by written application to the district office 
in whose service area the destination facility is located. Mixed loads 
of Periodicals and Standard Mail require advance appointments for 
deposit.

2.6  Documentation

    Subject to P012, the publisher must be able to show compliance with 
2.1 through 2.5. If a carrier route or walk-sequence rate is claimed, 
the publisher must provide the documentation required by the 
corresponding standards.

E270  Preferred Rates

[In 1.1, 1.2c, 2.1, 5.1, 6.1, and 6.2, replace ``second-class'' with 
``Periodicals''; in 1.3, replace ``second-class mailing privileges'' 
with ``Periodicals mailing privileges.'']

[Revise the heading of 1.0 as follows:]
1.0  In-County
* * * * *

1.6  DDU Rate

    Subject to E250, the DDU piece rate applies to each piece claimed 
in the pound rate portion at the DDU rate.

[Revise the heading of 2.0 as follows:]
2.0  Nonprofit--Basic Information
* * * * *

2.4  Destination Entry Rates

    Subject to E250, the DDU or DSCF piece rate applies to each piece 
claimed in the pound rate portion at the corresponding rate.

[Remove current 2.5.]

[Revise the heading of 3.0 as follows:]
3.0  Nonprofit--Publications of Qualified Nonprofit Organizations
* * * * *
[Revise the heading of 4.0 as follows:]
4.0  Nonprofit--Publications of Other Qualified Organizations
* * * * *
[Revise the heading of 5.0 as follows:]
5.0  Classroom
* * * * *

5.5  Destination Entry Rates

    Subject to E250, the DDU or DSCF piece rate applies to each piece 
claimed in the pound rate portion at the corresponding rate.

[Remove current 5.6.]

[Revise the heading of 6.0 as follows:]
6.0  Science-of-Agriculture
* * * * *

6.5  Destination Entry Rates

    Subject to E250, the DDU or DSCF piece rate applies to each piece 
claimed in the pound rate portion at the corresponding rate.

[Remove current 6.6.]

[Remove current E300 and E400; no change to E500.]
* * * * *
[Insert new E600 as follows:]

E600  Standard Mail

E610  Basic Standards

[Insert new E611, based on current E311 and E411, as follows:]

E611  Standards Applicable to All Standard Mail

1.0  General Information

1.1  Definition

    Standard Mail consists of mailable matter that is neither mailed or 
required to be mailed as First-Class Mail nor entered as Periodicals 
mail (unless permitted or required by standard). Standard Mail includes 
matter formerly classified as third-class mail and as fourth-class 
mail. Though combined in Standard Mail, matter from each former class 
is subject to separate and specific classification, eligibility, and 
preparation standards. Matter formerly classified as third-class mail 
is referred to as Standard Mail (A); matter formerly classified as 
fourth-class mail is referred to as Standard Mail (B). The unmodified 
term Standard Mail applies to both former third-class and former 
fourth-class matter.

1.2  Not Sealed

    Standard Mail is not sealed against postal inspection. Regardless 
of physical

[[Page 10130]]
closure, the mailing of articles at Standard Mail rates is consent by 
the mailer to postal inspection of the contents.

1.3  Written Additions

    Markings that have the character of personal correspondence 
require, with certain exceptions, additional postage at the First-Class 
rates. The following written additions and enclosures do not require 
additional First-Class postage and may be placed on the wrapper, on a 
tag or label attached to the outside of a parcel, or inside a parcel 
(either loose or attached to an article):
    a. The sender's and the addressee's names, occupations, and 
addresses, preceded by ``From'' or ``To,'' and directions for handling.
    b. Marks, numbers, names, or letters describing the contents.
    c. Words or phrases such as ``Do Not Open Until Christmas,'' 
``Happy Birthday, Mother,'' etc.
    d. Instructions and directions for the use of the item mailed.
    e. A manuscript dedication or inscription not having the nature of 
personal correspondence.
    f. Marks to call attention to words or passages in the text.
    g. Corrections of typographical errors in printed matter.
    h. Manuscripts accompanying related proof sheets and corrections of 
proof sheets including corrections of typographical and other errors, 
changes in the text, insertions of new text, marginal instructions to 
the printer, and corrective rewrites of parts.
    i. Handstamped imprints, unless the added material is in itself 
personal or converts the original matter to a personal communication.
    j. Matter mailable separately as Standard Mail (A) printed on the 
wrapper, envelope, tag, or label.

1.4  Invoice

    An invoice, whether or not it also serves as a bill, may be 
enclosed or placed in an envelope (marked ``Invoice Enclosed'') 
attached to the outside of a Standard Mail mailpiece if the invoice 
relates solely to the matter with which it is mailed. The invoice may 
show this information:
    a. Names and addresses of the sender and addressee.
    b. Names and quantities of the articles enclosed, descriptions of 
each (e.g., price, tax, style, stock number, size, and quality, and, if 
defective, nature of defects).
    c. Order or file number, date of order, date and manner of 
shipment, shipping weight, postage paid, and initials or name of packer 
or checker.

1.5  Incidental First-Class Attachments and Enclosures

    Incidental First-Class matter may be enclosed in or attached to 
Standard Mail (A) merchandise (including books but excluding 
merchandise samples) or any Standard Mail (B) mailpiece without payment 
of First-Class postage. An incidental First-Class attachment or 
enclosure must be matter that, if mailed separately, would require 
First-Class postage, is closely associated with but secondary to the 
host piece, and is prepared not to encumber postal processing. An 
incidental First-Class attachment or enclosure may be a bill for the 
product or publication, a statement of account for past products or 
publications, or a personal message or greeting included with a 
product, publication, or parcel. Postage at the Standard Mail rate 
applicable to the host piece is based on the combined weight of the 
host piece and the incidental First-Class attachment or enclosure.

1.6  Address Correction

    The fee for manual or automated address correction service is 
charged per notice issued.

1.7  Addressing

    Each piece of Standard Mail must bear a delivery address. 
Alternative address formats or detached address labels may be used, 
subject to A040 or A060, respectively.

1.8  Documentation

    A postage statement, completed and signed by the mailer, using the 
correct USPS form or an approved facsimile, must be submitted with each 
mailing except for single-piece rate mailings in which the correct 
postage is affixed to each piece. Supporting documentation might be 
required by the standards for the rate claimed or postage payment 
method used.

[Insert new E612, based on current E311 and E312, as follows:]

E612  Additional Standards Applicable to Standard Mail (A)

1.0  Weight
    Standard Mail (A) must weigh less than 16 ounces.
2.0  Content

2.1  Circulars

    Circulars, including printed form letters that, according to 
internal evidence, are sent in identical terms to more than one person 
are Standard Mail (A). A circular does not lose its character as such 
if a date and the individual names of the addressee and sender are 
printed therein or handwritten corrections of typographical errors are 
made on the circular.

2.2  Printed Matter

    Printed matter weighing less than 16 ounces may be sent as Standard 
Mail (A). For this standard, printed matter means paper on which words, 
letters, characters, figures, or images (or any combination of them), 
not having the character of a bill or statement of account or of actual 
or personal correspondence, are reproduced by any process other than 
handwriting or typewriting.

2.3  Computer-Prepared Material

    Computer-prepared material is considered printed matter. Such 
material is not considered to have the character of actual or personal 
correspondence merely because it contains:
    a. Specific information about a product offered for sale or lease 
(e.g., size, color, price) or a service being offered (e.g., the name, 
address, and telephone number of a company representative).
    b. Information relating the addressee directly to an advertised 
product or service.
    c. Information such as the amount paid for a previous purchase, 
pledge, or donation, when associated with a sales promotion or 
solicitation for donations.
3.0  Enclosures and Attachments

3.1  Nonincidental First-Class Enclosures

    Letters or other pieces of nonincidental First-Class Mail, subject 
to postage at First-Class rates, may be enclosed with Standard Mail 
(A). Postage for the First-Class enclosure must be placed on the 
outside of the mailpiece. It may be affixed separately or added to the 
postage for the host piece. The endorsement ``First-Class Mail 
Enclosed'' must be placed on the mailpiece, below the postage and above 
the address.

3.2  Nonincidental First-Class Attachments

    Letters or other pieces of nonincidental First-Class Mail may be 
placed in an envelope and securely attached to the address side of a 
Standard Mail (A) mailpiece or of the principal mailpiece, as 
applicable. Combination envelopes or containers with separate parts for 
the two classes of mail may be used. The names and addresses of the 
sender and addressee must be placed on both the principal mailpiece and 
the attachment.

[[Page 10131]]
Alternatively, the sender's name and address must be placed on one part 
and the addressee's name and address on the other. If the mailpiece is 
a combination container with inseparable parts or compartments, the 
names and addresses may appear on only one part. The applicable 
Standard Mail (A) postage for the Standard Mail (A) matter must be 
prepaid and placed in the upper right corner of the address space. 
Postage at the applicable First-Class rate must be paid for and affixed 
to the First-Class attachment, unless other payment methods are 
permitted by standard.

3.3  Attachment of Other Standard Mail (A) Matter

    The front cover page or the back cover page of a Standard Mail (A) 
mailpiece may bear an attachment that is other Standard Mail (A) matter 
if:
    a. Each piece in the mailing bears the same attachment.
    b. The material qualifies for and is mailed at bulk rates.
    c. The pieces bearing the attachment are larger than 6 by 11 
inches.
    d. The attachment is secured so as not to interfere with processing 
or delivery. Folded or multipage attachments must be secured to prevent 
opening during handling.
    e. The mailing is sorted to carrier routes.

3.4  Protective Covers

    A protective cover (outsert) on a catalog or book must fully cover 
(to within 3/4 inch of each edge) the main body of the catalog or book, 
front and back, or the entire piece must be enclosed in a wrapper (a 
full sleeve or envelope).
4.0  Bulk Rates

4.1  General Information

    Bulk rates apply to mailings meeting the basic standards in E611 
and the corresponding standards for presort, automation, and 
destination entry in E630, E640, and E650, as appropriate for the rate 
claimed. Nonprofit rates may be used only by organizations authorized 
by the USPS under E670. Bulk rate Standard Mail (A) may not use 
certified, collect on delivery (COD), insurance, registry, return 
receipt for merchandise, special delivery, and special handling 
services. Not all processing categories qualify for every bulk rate.

4.2  Minimum Per Piece Rates

    The minimum per piece rates (i.e., the minimum postage that must be 
paid for each piece) apply to Enhanced Carrier Route rate pieces 
weighing 0.2066 pound (rounded, or 3.3062 ounces, rounded) or less, 
Regular nonautomation and automation rate pieces weighing 0.2068 pound 
(rounded, or 3.3087 ounces, rounded) or less, and Nonprofit 
nonautomation and automation rate pieces weighing 0.2149 pound 
(rounded, or 3.4383 ounces, rounded) or less. The base postage rate 
applies to pieces meeting minimum preparation standards (e.g., 
Basicrate) and may be reduced if additional standards are met. For the 
minimum per piece rates, mail is categorized as either ``letters'' or 
``other than letters'' based on the letter-size standard in C050 that 
disregards address placement, except that, for automation rates, mail 
may be assigned to the ``other than letters'' category based on the 
standards in C820. Address placement is also used to apply the aspect 
ratio standard for letter-size automation rates in C810.

4.3  Piece/Pound Rates

    Pieces exceeding the weight limits specified in 4.2 are subject to 
a two-part piece/pound rate that includes a fixed charge per piece and 
a variable pound charge based on weight. The base postage rate applies 
to pieces meeting the minimum preparation standards (e.g., basic 
nonautomation presort). Discounts are available subject to the 
corresponding standards.

4.4  Net Postage

    The net postage rate that must be paid is either the minimum per 
piece rate or the piece/pound rate, as reduced in either case by any 
discounts for which the piece is eligible. The net postage rate is 
commonly designated by the name of the primary discount (e.g., carrier 
route rate, automation rate, DBMC rate).

4.5  Minimum Rate Per Piece

    Postage is computed at the applicable rates on the entire bulk 
mailing to be mailed at one time. Subject to 4.6, the total postage 
paid on any bulk mailing may not be lower than the amount determined by 
multiplying the proper minimum per piece rate (less applicable 
discounts) by the total number of mailpieces. If the total postage 
computed at pound rates, after any adjustment for presort level, is 
less than the minimum postage charge, postage must be computed at the 
minimum per piece rate.

4.6  Exception

    When the postage computed at the bulk Standard Mail (A) rates is 
higher than a Standard Mail (B) rate for which the matter and the 
mailing could qualify except for its weight, the Standard Mail (B) rate 
may be paid without adding needless weight. All other standards for 
bulk Standard Mail (A) apply.

4.7  Annual Fees

    Bulk rate Standard Mail (A) is subject to an annual fee once each 
12-month period. The fee may be paid in advance only for the next year 
and only during the last 30 days of the current service period. The fee 
charged is that in effect on the date of payment. Additional standards 
apply, based on how postage is paid:
    a. When mailings are paid with meter or precanceled stamps, each 
mailer who enters mailings at the Regular, Enhanced Carrier Route, or 
Nonprofit rates must pay an annual bulk mailing fee at each post office 
of mailing. Persons or organizations paying this fee may enter mail of 
their clients as well as their own mail.
    b. When a mailing is paid with a permit imprint, the mailer whose 
permit imprint is on the mailpiece must put that permit number on the 
postage statement and must pay the annual bulk mailing fee for that 
permit. This fee is in addition to the fee that must be paid when 
applying to use permit imprints.

4.8  Merging

    Mailings are subject to the general definition and conditions in 
M011. Generally, mailers may merge similar bulk Standard Mail (A) 
matter into a single mailing. Differences in text, address labels, and 
address lists or list key numbers do not prohibit the mailer from 
merging and sorting pieces together. Pieces with different methods of 
postage payment may be combined in the same mailing only if authorized 
by the RCSC. Pieces of nonidentical weight, if merged in the same 
mailing, must bear the correct postage when mailed, unless otherwise 
authorized by the RCSC.

4.9  Preparation

    Each Nonprofit, Regular, or Enhanced Carrier Route rate mailing 
must be prepared under these general standards:
    a. All pieces in a mailing must be of the same processing category, 
except that irregular and machinable parcels may be commingled in 5-
digit sacks or on 5-digit pallets.
    b. Each mailing must contain at least 200 pieces or 50 pounds of 
pieces. Other volume standards can also apply, based on the rate 
claimed.
    c. The same mailing may not contain both automation and 
nonautomation rate pieces except as allowed under E649.
    c. All pieces in a bulk mailing must be sorted together and marked 
under the standards applicable to the rate claimed.
    d. Each piece must bear the addressee's name and delivery address,

[[Page 10132]]
including the correct ZIP Code or ZIP+4 code, unless an alternative 
address format is used subject to A040. Pieces in automation rate 
mailings, upgradable nonautomation rate pieces, or pieces prepared with 
detached address labels, are subject to additional standards.
    e. Postage must be paid under the standards in P600 with 
precanceled stamps, postage meter, or permit imprint.
    f. Mailings must be documented under P012 and the standards for the 
rate claimed.
    g. Each piece must meet the standards applicable to any other rate 
or discount claimed.
    h. Any POSTNET barcode on a mailpiece must be the correct barcode 
for the delivery address and meet the standards in C840 and A950.
    i. Mailings must be deposited at a business mail entry unit of the 
post office where the postage permit or license is held and the annual 
bulk fee paid, unless deposit elsewhere is permitted by standard.

[Insert new E613, based on current E411, as follows:]

E613  Additional Standards Applicable to Standard Mail (B)

1.0  Weight
    Standard Mail (B) consists of mailable matter that (except Special 
Standard Mail and Library Mail) weighs 16 ounces or more.
2.0  Zoned Rates

2.1  Required Mailing Office

    Zoned Standard Mail (i.e., parcel post and bound printed matter) 
must be mailed at the post office from which the zone rate postage was 
computed, except under 2.2 and 2.3.

2.2  Redirected Mailings

    Mailers who present large mailings of zoned Standard Mail may be 
allowed or directed to deposit such mailings at another postal facility 
when processing or logistics make such an alternative desirable for the 
USPS, subject to these conditions:
    a. Zoned postage need not be recomputed if both the original post 
office of mailing and the alternative facility use the same zone chart 
for computing zoned postage, based on the 3-digit prefix of their ZIP 
Codes.
    b. Postage must be recomputed on pieces in mailings redirected to a 
postal facility that uses a different zone chart for computing zoned 
postage.
    c. Postage for pieces claimed at the local zone rates must be 
recomputed at the applicable zone rate for the alternative postal 
facility. Postage may also be recomputed for other pieces that are 
ineligible for the local zone rates but that could become eligible at 
the postal facility to which the mailing is redirected.

2.3  BMC Acceptance

    Mailers may present zoned Standard Mail at a BMC for acceptance if:
    a. Metered postage is paid through a postage meter licensed at the 
BMC parent post office, or permit imprint postage is paid through an 
advance deposit account at the BMC parent post office or another post 
office in the BMC service area, unless otherwise permitted by standard.
    b. Zoned postage is computed from the BMC parent post office.
    c. The BMC is authorized by Form 4410 to act as acceptance agent 
for the entry post office.
3.0  Addressing
    All Standard Mail (B) must bear the sender's return address and, 
except for single-piece rate parcel post, the delivery address on each 
piece must include the correct ZIP Code or ZIP+4 code.

E620  Nonautomation Nonpresort Standard Mail Rates

[Insert text of current E320 and redesignate as E621; revise as 
follows:]

E621  Single-Piece Standard Mail (A)

1.0  Single-Piece Rate

1.1  Rate Application

    Single-piece rate Standard Mail (A) is Standard Mail (A) matter not 
prepared as required for a bulk rate. The single-piece rates are 
applied to each piece (or each item mailed under 1.2) based on its 
weight. If the computed single-piece Standard Mail (A) rate is higher 
than any Standard Mail (B) rate for which the mail could qualify except 
for weight, the lower Standard Mail (B) rate may be paid; all other 
standards for single-piece Standard Mail (A) apply.

1.2  Keys and Identification Devices

    Keys and identification devices (identification cards or uncovered 
identification tags) may be mailed as single-piece Standard Mail (A) if 
they bear, contain, or have securely attached instructions to return to 
a name and complete address of a person, organization, or concern and a 
statement guaranteeing postage payment on delivery.

1.3  Nonstandard Surcharge

    Single-piece rate Standard Mail (A) (except keys and identification 
devices) is subject to a nonstandard surcharge if it weighs 1 ounce or 
less and meets the definition of nonstandard mail in C600.

1.4  Preparation

    Keys and identification devices must be prepared under 1.2. All 
other single-piece rate Standard Mail (A) pieces must have a delivery 
address and the endorsement ``Standard Mail.'' No minimum quantity is 
required unless postage is paid with a permit imprint (in which case 
the mailing must contain 200 pieces or 50 pounds of pieces). There are 
no sortation standards, but five or more metered letter-size pieces and 
any permit imprint pieces must be ``faced'' (so that the addresses face 
in one direction) and bundled, boxed, or packaged.

1.5  Postage Payment and Documentation

    Except for keys and identification devices, full postage must be 
affixed in adhesive stamps, precanceled stamps, or meter postage or 
paid with permit imprint. Documentation of postage and a postage 
statement are required if postage is paid with a permit imprint or if 
the correct postage is not affixed to each piece in the mailing.

1.6  Place of Mailing

    Pieces paid with adhesive stamps may be deposited in collection 
boxes or other places where mail is accepted. Pieces paid with meter 
postage, precanceled stamps, or permit imprint must be taken to the 
post office where the license or permit is held, unless the USPS 
authorizes otherwise.

[Insert text of current E412 and redesignate as E622; revise as 
follows:]

E622  Parcel Post

1.0  Basic Standards

1.1  Description

    Any Standard Mail (B) matter may be mailed at parcel post rates. 
Parcel post rates are based on zones, on whether a parcel is mailed and 
delivered within a BMC or ASF service area (as shown below), and on the 
weight of the piece.
* * * * *

1.3  Enclosures

    Parcel post may contain any printed matter mailable as Standard 
Mail (A), in addition to the enclosures and additions listed in E611.

[Remove current E412.1.4; insert text of current E412.2.0 through 
E412.4.0 and redesignate as E622.2.0 through E622.4.0, respectively; in 
1.1 and 3.1, replace ``fourth-class'' with ``Standard Mail (B)''; in 
2.4, replace the reference ``E450'' with ``E652''; no other change in 
text.]


[[Page 10133]]

[Insert text of current E414 and redesignate as E623; revise as 
follows:]

E623  Bound Printed Matter

1.0  Basic Standards

1.1  Description

    Bound printed matter is Standard Mail weighing at least 1 pound but 
not more than 10 pounds and meeting the standards in E611 and E613. 
Bound printed matter rates are based on zones and on the weight of the 
piece.

1.2  Characteristics

    Bound printed matter must:
    a. Consist of advertising, promotional, directory, or editorial 
material (or any combination of such material).
    b. Be securely bound by permanent fastenings such as staples, 
spiral binding, glue, or stitching. Looseleaf binders and similar 
fastenings are not considered permanent.
    c. Consist of sheets of which at least 90% are imprinted by any 
process other than handwriting or typewriting with words, letters, 
characters, figures, or images (or any combination of them).
    d. Not have the nature of personal correspondence.
    e. Not be stationery, such as pads of blank printed forms.

1.3  Combining Pieces

    A mailpiece containing two or more bound printed matter pieces, 
each weighing less than 1 pound, is mailable at the bound printed 
matter rates if the total weight of the pieces is at least 1 pound.

1.4  Enclosures

    In addition to the additions and enclosures listed in E611 and 
E612, bound printed matter may contain:
    a. Any printed matter mailable as Standard Mail (A).
    b. A merchandise sample attached to a bound page or to a 
permissible loose enclosure, if the sample represents only an 
incidental portion of the bound printed matter piece and if the sample 
is not provided exclusively or primarily as a premium or an inducement 
promoting the sale of the bound printed matter piece. The sample may be 
identified as a ``free gift'' where it is clear that the sample is 
offered to the addressee to market the gift product or promote the sale 
of the bound printed matter.

[Remove current E414.1.5; redesignate current E414.2.0 as E633.]

[Insert text of current E416 and redesignate as E624; revise as 
follows:]

E624  Special Standard Mail

1.0  Basic Standards

1.1  Qualification

    Special Standard Mail is Standard Mail matter meeting the standards 
in E611, E613, and those below. Special Standard Mail rates are based 
on the weight of the piece, without regard to zone.

1.2  Qualified Items

    Only these articles may be mailed at the Special Standard Mail 
rates:
    a. Books, including books issued to supplement other books of at 
least eight printed pages, consisting wholly of reading matter or 
scholarly bibliography, or reading matter with incidental blank spaces 
for notations and containing no advertising matter other than 
incidental announcements of books. Advertising includes paid 
advertising and the publisher's own advertising in display, classified, 
or editorial style.
    b. 16-millimeter or narrower width films, which must be positive 
prints in final form for viewing, and catalogs of such films of 24 
pages or more (at least 22 of which are printed). Films and film 
catalogs sent to or from commercial theaters do not qualify for the 
Special Standard Mail rate.
    c. Printed music, whether in bound or sheet form.
    d. Printed objective test materials and their accessories used by 
or in behalf of educational institutions to test ability, aptitude, 
achievement, interests, and other mental and personal qualities with or 
without answers, test scores, or identifying information recorded 
thereon in writing or by mark.
    e. Sound recordings and guides or scripts prepared solely for use 
with such recordings. Video recordings and player piano rolls are 
classified as sound recordings.
    f. Playscripts and manuscripts for books, periodicals, and music.
    g. Printed educational reference charts designed to instruct or 
train individuals for improving or developing their capabilities. Each 
chart must be a single printed sheet of information designed for 
educational reference. The information on the chart, which may be 
printed on one or both sides of the sheet, must be conveyed primarily 
by graphs, diagrams, tables, or other nonnarrative matter. An 
educational reference chart is normally but not necessarily devoted to 
one subject. A chart on which the information is conveyed primarily by 
textual matter in a narrative form does not qualify as a printed 
educational reference chart for mailing at the Special Standard Mail 
rates even if it includes graphs, diagrams, or tables. Examples of 
qualifying charts include maps produced primarily for educational 
reference, tables of mathematical or scientific equations, noun 
declensions or verb conjugations used in the study of languages, 
periodic table of elements, botanical or zoological tables, and other 
tables used in the study of science.
    h. Looseleaf pages and their binders consisting of medical 
information for distribution to doctors, hospitals, medical schools, 
and medical students.
    i. Computer-readable media containing prerecorded information and 
guides or scripts prepared solely for use with such media.

1.3  Loose Enclosures

    In addition to the enclosures and additions listed in E611, any 
printed matter that is mailable as Standard Mail (A) may be included 
loose with any qualifying material mailed at the Special Standard Mail 
rates.

1.4  Enclosures in Books

    Enclosures in books mailed at Special Standard Mail rates are 
subject to these additional standards:
    a. Either one envelope or one addressed postcard may be bound into 
the pages of a book. If also serving as an order form, the envelope or 
card may be in addition to the order form permitted by 1.4b.
    b. One order form may be bound into the pages of a book. If also 
serving as an envelope or postcard, the order form may be in addition 
to the envelope or card permitted by 1.4a.
    c. Announcements of books may appear as book pages. These 
announcements must be incidental and exclusively devoted to books, 
without extraneous advertising of book-related or other materials or 
services. Announcements may fully describe the conditions and methods 
of ordering books and may contain ordering instructions for use with a 
separate order form. Up to three of these announcements may contain as 
part of their format a single order form, which may also serve as a 
postcard. The order forms permitted with these announcements are in 
addition to, and not in place of, order forms that may be enclosed 
under 1.4a or 1.4b.

[Remove current E416.1.5; redesignate E416.2.0 as E634.]

[Insert text of current E419 and redesignate as E625; revise as 
follows:]

[[Page 10134]]


E625  Library Mail

1.0  Basic Standards

1.1  Qualification

    Library Mail is Standard Mail matter that meets the standards in 
E611, E613, and those below. Library Mail rates are based on the weight 
of the piece, without regard to zone.

1.2  Qualified Sender, Recipient, Content

    Each piece must show in the address or return address the name of a 
school, college, university, public library, museum, or herbarium or 
the name of a nonprofit religious, educational, scientific, 
philanthropic (charitable), agricultural, labor, veterans, or fraternal 
organization. For Library Mail standards, these nonprofit organizations 
are defined in E670. Only the articles described in 1.4 through 1.5 may 
be mailed at the Library Mail rate.

1.3  Preparation

    When 1,000 or more pieces of identical weight are mailed at the 
Library Mail rates during a single day, the pieces must be prepared 
under M630.

1.4  Mailable Items Sent Between

    The following items may be mailed at the Library Mail rate when 
sent between: (1) schools, colleges, universities, public libraries, 
museums, and herbariums and nonprofit religious, educational, 
scientific, philanthropic (charitable), agricultural, labor, veterans, 
and fraternal organizations or associations; (2) any such institution, 
organization, or association, and an individual who has no financial 
interest in the sale, promotion, or distribution of the materials; or 
(3) any such institution, organization, or association and a publisher, 
if such institution, organization, or association has placed an order 
to buy such materials for delivery to itself:
    a. Books, consisting wholly of reading matter, scholarly 
bibliography, or reading matter with incidental blank spaces for 
notations and containing no advertising except for incidental 
announcements of books.
    b. Printed music, whether in bound or sheet form.
    c. Bound volumes of academic theses, whether in typewritten or 
duplicated form.
    d. Periodicals, whether bound or unbound.
    e. Sound recordings.
    f. Other library materials in printed, duplicated, or photographic 
form or in the form of unpublished manuscripts.
    g. Museum materials, specimens, collections, teaching aids, printed 
matter, and interpretive materials for informing and furthering the 
educational work and interests of museums and herbariums.

1.5  Mailable Items Sent ``To'' or ``From''

    The following specific items may be mailed at the Library Mail rate 
when sent to or from schools, colleges, universities, public libraries, 
museums, and herbariums and to or from nonprofit religious, 
educational, scientific, philanthropic (charitable), agricultural, 
labor, veterans, or fraternal organizations:
    a. 16-millimeter or narrower width films, filmstrips, 
transparencies, slides, and microfilms. All must be positive prints in 
final form for viewing.
    b. Sound recordings.
    c. Museum materials, specimens, collections, teaching aids, printed 
matter, and interpretive materials intended for informing and 
furthering the educational work and interests of museums and 
herbariums.
    d. Scientific or mathematical kits, instruments, or other devices.
    e. Catalogs of the materials in 1.5a through 1.5d and guides or 
scripts prepared solely for use with such materials.

1.6  Enclosures in Books and Sound Recordings

    Books and sound recordings mailed at the Library Mail rate may 
contain these enclosures as well as the additions and enclosures 
permitted under E611:
    a. Either one envelope or one addressed postcard. If also serving 
as an order form, the envelope or card may be in addition to the order 
form permitted by 1.6b.
    b. One order form. If also serving as an envelope or postcard, the 
order form may be in addition to the envelope or card permitted by 
1.6a.
    c. With books, announcements of books appearing in book pages or as 
loose enclosures. These announcements must be incidental and 
exclusively devoted to books, without extraneous advertising of book-
related materials or services. Announcements may fully describe the 
conditions and methods of ordering books (such as by membership in book 
clubs) and may contain ordering instructions for use with the single 
order form permitted in 1.6b.
    d. With sound recordings, announcements of sound recordings 
appearing on title labels, on protective sleeves, on the carton or 
wrapper, or on loose enclosures. These announcements of sound 
recordings must be incidental and exclusively devoted to sound 
recordings. They may not contain extraneous advertising of recording-
related materials or services. Announcements may fully describe the 
conditions and methods of ordering sound recordings (such as by 
membership in sound recording clubs) and may contain ordering 
instructions for use with the single order form permitted in 1.6b.

1.7  Other Material

    Material mailed at the Library Mail rate other than books and sound 
recordings may contain only those additions and enclosures permitted 
under E611.

[Remove text of current E419.1.8.]

E630  Nonautomation Presort Standard Mail Rates

[Insert text of current of E331 and E332 and redesignate as E631; 
revise as follows:]

E631  Nonautomation Regular Standard Mail

1.0  Basic Standards
    All pieces in a nonautomation Regular Standard Mail mailing must 
meet the basic standards for Standard Mail in E611 and E612 and must be 
part of a single mailing of at least 200 pieces or 50 pounds of pieces 
of nonautomation rate Regular Standard Mail.
2.0  Basic and 3/5 Rates
    Nonautomation Regular Standard Mail rates (Basic and 3/5) apply to 
Regular Standard Mail letters, flats, and machinable and irregular 
parcels, weighing less than 16 ounces, that are prepared under M610 or 
palletized under M045. Basic rates apply to pieces that do not meet the 
standards for the 3/5 rates described below. Basic rate and 3/5 rate 
pieces prepared as part of the same mailing are subject to a single 
minimum volume standard. Pieces that do not qualify for the 3/5 rate 
must be paid at the basic rate and prepared accordingly. Pieces may 
qualify for the 3/5 rate if:
    a. In quantities of 150 or more letter-size pieces for a single 3-
digit area, prepared in 5-digit or 3-digit packages of 10 or more 
pieces each and placed in 5-digit or 3-digit trays.
    b. In quantities of 150 or more upgradable letter-size pieces (as 
defined in M610) for a single 3-digit area and placed in 5-digit or 3-
digit trays.
    c. In a 5-digit or 3-digit package of 10 or more flat-size pieces 
and placed in a 5-digit or 3-digit sack containing at least 125 pieces 
or 15 pounds of pieces.

[[Page 10135]]

    d. In a 5-digit or 3-digit package of 10 or more flat-size pieces 
palletized under M045.
    e. In a 5-digit, destination ASF (if required), or destination BMC 
sack containing at least 10 pounds of machinable parcels. (The 3/5 
rates are available only if all possible 5-digit sacks are prepared.)
    f. On a 5-digit, destination ASF (if required), or destination BMC 
pallet of machinable parcels. (The 3/5 rates are available only if all 
possible 5-digit pallets are prepared.)
    g. In a 5-digit or 3-digit sack of irregular parcels containing at 
least 125 pieces or 15 pounds of pieces.
3.0  ZIP Code Accuracy
    Effective October 1, 1996, 5-digit ZIP Codes included in addresses 
appearing on pieces claimed at nonautomation Regular rates must be 
verified and corrected within 12 months before the mailing date, using 
a USPS-approved method. Mailers must certify that this standard has 
been met when the corresponding mail is presented to the USPS. This 
standard applies to each address individually, not to a specific list 
or mailing. An address meeting this standard may be used in mailings at 
any other rates to which the standard applies throughout the 12-month 
period following its most recent update.

[Remove text of current E333 and E334 and replace with new E632 as 
follows:]

E632  Enhanced Carrier Route Standard Mail

1.0  Basic Standards

1.1  All Pieces

    All pieces in an Enhanced Carrier Route Standard Mail mailing 
(letters, flats, or irregular parcels, including merchandise samples 
distributed with detached address labels) must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail, except that 
automation Basic Carrier Route rate pieces are subject to a separate 
200-piece/50-pound minimum volume standard and may not be included in 
the same mailing as other Enhanced Carrier Route mail.
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized) or M620.

1.2  Flats and Merchandise Samples

    Enhanced Carrier Route rate flats may not be more than 11\3/4\ 
inches wide, 14 inches long, or \3/4\ inch thick. Merchandise samples 
with detached address labels may exceed these dimensions if the labels 
meet the standards in A060.

1.3  Preparation

    Preparation to qualify for any of the Enhanced Carrier Route rates 
is optional and need not be performed for all carrier routes in a 5-
digit area. An Enhanced Carrier Route mailing may include pieces at 
Basic, High Density, and Saturation Enhanced Carrier Route rates. 
Automation Basic Carrier Route rate pieces must be prepared as a 
separate mailing, subject to the eligibility standards in E641.

1.4  Carrier Route Information

    Subject to A930 and A950, mailers must apply carrier route codes to 
mailings using CASS-certified software and the current USPS Carrier 
Route Information System (CRIS) scheme or another AIS product 
containing carrier route information. The carrier route information 
must be updated within 90 days before the mailing date. Carrier route 
and City/State File information must be updated within 90 days before 
the mailing date.

1.5  Sequencing

    Basic Carrier Route rate mail must be prepared either in carrier 
walk sequence or in line-of-travel (LOT) sequence according to LOT 
schemes prescribed by the USPS (see M050). High Density and Saturation 
rate mailings must be prepared in carrier walk sequence according to 
schemes prescribed by the USPS.

1.6  Addressing--High Density and Saturation Mail

    High Density and Saturation rate mail may be prepared with detached 
address labels, subject to A060, or with an alternative addressing 
format, subject to A040. High Density pieces must have a complete 
delivery address or an address in occupant or exceptional format. 
Saturation pieces addressed for delivery on a city route must have a 
complete delivery address or an address in occupant or exceptional 
format, except that official mail from certain government entities may 
also use the simplified format. Saturation pieces for delivery on rural 
or highway contract routes, or through general delivery or a post 
office box, must have a complete delivery address or an alternative 
address format.

1.7  Density--High Density and Saturation Mail

    High Density and Saturation rate mailings are subject to these 
density standards:
    a. There is no minimum volume per 5-digit ZIP Code delivery area. 
Pieces need not be sent to all carrier routes within a 5-digit delivery 
area.
    b. For the High Density rate, at least 125 pieces must be prepared 
for each carrier route for which that discount is claimed, except that 
fewer pieces may be prepared and the High Density rate may be claimed 
for carrier routes of 124 or fewer possible deliveries if a piece is 
addressed to every possible delivery on the route. Multiple pieces per 
delivery address can count toward this density standard.
    c. For the Saturation rate, pieces must be addressed either to 90% 
or more of the active residential addresses or to 75% or more of the 
total number of active possible delivery addresses, whichever is less, 
on each carrier route receiving this mail, except that mail addressed 
in the simplified address format must meet the 100% coverage standard 
in A040. Multiple pieces per delivery address do not count toward this 
delivery standard. Sacks with fewer than 125 pieces and less than 15 
pounds of pieces may be prepared to a carrier route when the Saturation 
rate is claimed for the contents and the applicable density standard is 
met.
2.0  Rate Application

2.1  Automation Basic

    Automation Basic Carrier Route rates apply to each piece that is 
sorted under M810 into full carrier route trays, or in carrier route 
groups of 10 or more pieces each placed in 5-digit carrier routes 
trays. (Preparation to qualify for that rate is optional and need not 
be performed for all carrier routes in a 5-digit area.)

2.2  Basic

    Basic (nonautomation) Carrier Route rates apply to each piece that 
is sorted under M620 into the corresponding qualifying groups:
    a. Letter-size pieces in a full carrier route tray, or in a carrier 
route package of 10 or more pieces placed in a 5-digit carrier routes 
tray.
    b. Flat-size pieces in a carrier route package of 10 or more pieces 
palletized under M045, or placed in a carrier route sack containing at 
least 125 pieces or 15 pounds of pieces or in a 5-digit carrier routes 
sack.
    c. Irregular parcels in a carrier route sack containing 125 pieces 
or 15 pounds of pieces, in a carrier route carton(s) of merchandise 
samples prepared with detached address labels under A060 containing a 
total of 125 pieces or 15 pounds of pieces, or in a 5-digit carrier 
routes sack or carton. (Pieces must be in

[[Page 10136]]
packages of 10 or more irregular parcels each if packaging is required 
under M610.)

2.3  High Density and Saturation

    High Density and Saturation rates apply to pieces qualified for the 
Basic rates that also meet the applicable addressing and density 
standards in 1.6 and 1.7.

[Insert text of current E414.2.0 and redesignate as E633; revise as 
follows:]

E633  Bulk Bound Printed Matter

1.0  Basic Information

1.1  Preparation

    Bulk bound printed matter must meet the basic standards in E623 and 
the applicable preparation standards in M630. Mailings may contain 
nonidentical-weight pieces only if the correct postage is affixed to 
each piece or if the RCSC serving the office of mailing has authorized 
payment of postage by permit imprint. Each mailing must contain 300 or 
more pieces of bound printed matter. Insurance, special delivery, 
special handling, and COD services may be used, but selective use of 
these services for individual parcels must be approved by the RCSC.

1.2  Additional Standards for Carrier Route

    Carrier route bulk bound printed matter is subject to these 
additional standards:
    a. Each mailing must contain 300 or more pieces sorted under M630 
into groups of at least 10 pieces, 20 pounds, or 1,000 cubic inches 
each for the same carrier route, rural route, highway contract route, 
post office box section, or general delivery unit.
    b. Residual pieces (not sorted as described in 1.2a) do not count 
toward the minimum specified in 1.2a, are ineligible for the carrier 
route presort level rate, and must have postage paid at the appropriate 
bulk bound printed matter rate. Residual pieces may be included in a 
carrier route presort rate mailing and be endorsed ``Carrier Route 
Presort'' or ``CAR-RT SORT.'' The number of residual pieces to any 
single 5-digit ZIP Code area may not exceed 5% of the total qualifying 
carrier route pieces addressed to that 5-digit area. Residual pieces 
must be separated from the pieces that qualify for the carrier route 
rate and must be prepared under M630.
    c. Subject to A930, mailers must apply carrier route codes to 
mailings using CASS-certified software and the current USPS Carrier 
Route Information System (CRIS) scheme or another AIS product 
containing carrier route information. The carrier route information 
must be updated within 90 days before the mailing date.

[Insert text of current E416.2.0 and redesignate as E634; revise as 
follows:]

E634  Presorted Special Standard Mail

1.0  Basic Information
    The Presorted Special Standard Mail rates apply to Special Standard 
Mail rate matter mailed in minimum quantities at a place and time 
designated by the postmaster, subject to the preparation standards in 
M630. The size and content of each piece in the mailing does not need 
to be identical. Nonidentical pieces may be merged, sorted together, 
and presented as a single mailing either with postage paid with a 
permit imprint if authorized by the RCSC serving the post office of 
mailing, or with the correct postage affixed to each piece in the 
mailing.
2.0  Presort Rates

2.1  Mailing Fee

    A mailing fee must be paid once each 12-month period at each office 
of mailing by or for any person who mails at the Presorted Special 
Standard Mail rates. The fee may be paid in advance only for the next 
year and only during the last 30 days of the current service period. 
The fee charged is that in effect on the date of payment.

2.2  One Presort Level

    A Presorted Special Standard Mail rate mailing receives only one 
level of presort rate. The mailer may, however, prepare two or more 
mailings with separate postage statements to use both levels of presort 
rates. Pieces that do not qualify for a presort rate must be presented 
for mailing under a separate postage statement if postage is paid with 
a permit imprint.

2.3  Definitions

    For this standard:
    a. Full sack means either at least eight pieces or a quantity of 
pieces equaling at least 1,000 cubic inches of volume or weighing from 
20 to 70 pounds.
    b. Substantially full sack means either at least four pieces or a 
quantity of pieces equaling at least 1,000 cubic inches of volume or 
weighing from 20 to 70 pounds.

2.4  5-Digit Rate

    To qualify for the Presorted Special Standard Mail 5-digit rate, a 
piece must be in a mailing of at least 500 pieces receiving identical 
service, properly prepared and sorted either under M630 to full 5-digit 
sacks or under M045 to 5-digit pallets. These conditions also apply:
    a. Mailings of at least 500 nonmachinable outside parcels may 
qualify for the Presorted Special Standard Mail 5-digit rate if 
prepared to preserve sortation by 5-digit ZIP Code as prescribed by the 
mailing office postmaster. The postmaster may require up to a 24-hour 
notice before the mailing is presented.
    b. Mailings prepared as palletized bundles must consist of 5-digit 
bundles each containing at least eight pieces, or a quantity of pieces 
equaling 1,000 cubic inches of volume or weighing 20 pounds. No bundle 
may exceed 40 pounds. If there is more than 20 pounds of mail to a 5-
digit destination, mailers must prepare the minimum number of bundles 
that do not exceed 40 pounds each.

2.5  BMC Rate

    To qualify for the Presorted Special Standard Mail BMC rate, a 
piece must be in a mailing of at least 500 sacked pieces receiving 
identical service, properly prepared and sorted either under M630 to 
full or substantially full bulk mail center (BMC) sacks or under M045 
to BMC pallets. Mailings of at least 500 nonmachinable outside parcels 
may qualify for the Presorted Special Standard Mail BMC rate if 
prepared to preserve sortation by BMC as prescribed by the mailing 
office postmaster. The postmaster may require up to a 24-hour notice 
before the mailing is presented.

E639  Nonprofit Standard Mail

[Insert text of current E331 and E332 and redesignate, renumber, and 
revise as E639.1.0; insert text of current E333 and redesignate, 
renumber, and revise as E639.2.0; insert text of current E334 and 
redesignate, renumber, and revise as E639.3.0.]
1.0  Basic and 3/5 Rates

1.1  Qualifying Pieces

    Nonprofit Basic and 3/5 rates apply to Nonprofit Standard Mail 
letters, flats, and machinable and irregular parcels, weighing less 
than 16 ounces, that meet the basic standards in E611 and E612 and are 
prepared under M692. Basic rates apply to pieces that do not meet the 
standards for the 3/5 rates described below. Basic rate and 3/5 rate 
pieces may be prepared as part of the same mailing, subject to a single 
minimum volume standard. Pieces not sorted to qualify for the 3/5 rate 
must be paid at the basic rate and prepared accordingly. Pieces may 
qualify for the 3/5 rate if prepared:
    a. In 5-digit or 3-digit packages of 10 or more pieces each, placed 
in 5-digit or

[[Page 10137]]
3-digit sacks that contain at least 125 pieces or 15 pounds of pieces.
    b. In 5-digit or 3-digit packages of 10 or more pieces each, placed 
in 5-digit or 3-digit trays.
    c. In full or overflow 5-digit, 3-digit, or SCF trays, prepared 
under the standards for ZIP+4 tray-based mailings in M891.
    d. In 5-digit packages of 10 or more pieces each, or 3-digit 
packages of 50 or more pieces each, prepared under the standards for 
ZIP+4 package-based mailings in M892.
    e. In 5-digit, 3-digit, or SCF trays, prepared under the standards 
for letter-size Barcoded tray-based mailings in M893.
    f. In 5-digit packages of 10 or more pieces each, or 3-digit 
packages of 50 or more pieces each, prepared under the standards for 
letter-size Barcoded package-based mailings in M894 and M895.
    g. In 5-digit or 3-digit packages of 10 or more pieces each, 
prepared under the standards for flat-size 3/5 ZIP+4 Barcoded rate 
mailings in M897.
    h. In 5-digit or 3-digit packages of 10 or more pieces each, 
palletized under M045.
    i. In 5-digit, destination ASF (if required), or destination BMC 
sacks containing at least 10 pounds of machinable parcels. (The 3/5 
rates are available only if all possible 5-digit sacks are prepared.)
    j. On 5-digit or destination BMC pallets of machinable parcels. 
(The 3/5 rates are available only if all possible 5-digit pallets are 
prepared.)
    k. In 5-digit or 3-digit sacks of irregular parcels.

1.2  Optional Preparation

    At the mailer's option, nonautomation Nonprofit Standard Mail may 
be prepared under the standards for nonautomation Regular Standard Mail 
in M610, including presort. Under this option, nonautomation Nonprofit 
Standard Mail may claim nonautomation Nonprofit Basic or 3/5 rates if 
all corresponding eligibility standards in E631 for nonautomation 
Regular Basic and 3/5 rates are met.

1.3  Carrier Route Pieces

    A 3/5 rate mailing may not include pieces claimed at the carrier 
route or walk-sequence rates. The 3/5 rate pieces and carrier route or 
walk-sequence rate pieces may be reported on the same postage statement 
only under D600.
2.0  Carrier Route Rates

2.1  General

    All pieces in a carrier route rate mailing must be presented at one 
post office as part of a single mailing of at least 200 pieces or 50 
pounds of pieces prepared under M693 to carrier routes. Pieces may not 
be more than 11\3/4\ inches wide, 14 inches long, or \3/4\ inch thick. 
Merchandise samples with detached address labels may exceed these 
dimensions if the labels meet the standards in A060.

2.2  Optional Preparation

    At the mailer's option, carrier route Nonprofit Standard Mail may 
be prepared under the standards for Basic, High Density, or Saturation 
rate Enhanced Carrier Route Standard Mail in M620, including presort. 
Under this option, Nonprofit Standard Mail may claim Nonprofit carrier 
route rates if all corresponding eligibility standards in E632 are met 
for the Basic, High Density, or Saturation Enhanced Carrier Route rate. 
Automation Basic Carrier Route rates may not be claimed under this 
option.

2.3  Other Rates

    A carrier route rate mailing may include pieces claimed at the 
basic rate if the entire mailing meets the standard in 3.1. The basic 
rate pieces must be prepared under M692, but they do not have to meet a 
separate 200-piece/50-pound minimum. A carrier route rate mailing may 
not include pieces claimed at the 3/5 rates. The 3/5 rate and carrier 
route rate pieces may be reported on the same postage statement only 
under D600.

2.4  Required Listing

    At the time of mailing, the mailer must give the post office a list 
of the number of qualifying pieces to each 5-digit ZIP Code area. After 
the first mailing, the postmaster may authorize the mailer to keep the 
records and submit them on request. The mailer must keep these records 
for 90 days after the mailing date, or until any action pending on the 
recalculation of postage is resolved to USPS satisfaction.

2.5  Carrier Route Information

    Mailers must apply carrier route codes to mailings by using the 
current USPS Carrier Route Information System (CRIS) scheme or another 
AIS product containing carrier route information (see A930). Carrier 
route information must be updated within 90 days before the mailing 
date.

2.6  Qualifying Presort

    Each qualifying piece must be prepared under M693 as part of a 
group of 10 or more pieces in the same carrier route package that, in 
turn, is placed in a carrier route, 5-digit carrier routes, or 3-digit 
carrier routes tray or sack. To carrier route and 5-digit carrier 
routes destinations, trays must be full and sacks must contain at least 
125 pieces or 15 pounds of pieces. Qualifying mail also includes:
    a. Carrier route packages in a 5-digit carrier routes tray that is 
less than full, or in a 5-digit carrier routes sack that contains fewer 
than 125 pieces and less than 15 pounds of pieces if that 5-digit area 
does not have enough residential deliveries to meet the applicable full 
tray or 125-piece/15-pound sack minimum at a 90% saturation level.
    b. The last tray or sack to a 3-digit ZIP Code destination. The 
last tray may be less than full and the last sack may contain fewer 
than 125 pieces and less than 15 pounds of pieces.
    c. Carrier route packages palletized under M045.

2.7  Residual

    Residual pieces are those not sorted under M693 to qualify for 
carrier route rates. These pieces may be included in a carrier route 
rate mailing and may be marked ``Carrier Route Presort,'' subject to 
these conditions:
    a. Residual pieces do not count toward the minimum quantity for 
carrier route rates.
    b. The number of residual pieces to any single 5-digit ZIP Code 
area may not exceed 5% of the total qualifying carrier route pieces 
addressed to that 5-digit ZIP Code area.
    c. Residual pieces are not eligible for the carrier route rate and 
must have postage paid at the basic rate and must be prepared as 
specified in M693.
3.0  Walk-Sequence Rates

3.1  General

    All pieces in a walk-sequence rate mailing must be presented at one 
post office as part of a single mailing of at least 200 pieces or 50 
pounds of pieces sorted to carrier routes. Subject to compliance with 
these standards, the saturation walk-sequence rate may be claimed by 
pieces in both the ``letters'' and ``other-than-letters'' categories. 
The 125-piece walk-sequence rate may be claimed only by pieces in the 
``other-than-letters'' category, as defined in E612.

3.2  Optional Preparation

    At the mailer's option, carrier route Nonprofit Standard Mail may 
be prepared under the standards for Enhanced Carrier Route Standard 
Mail in M620, including presort. Under this option, Nonprofit Standard 
Mail may claim Nonprofit 125-piece walk-sequence or saturation walk-
sequence

[[Page 10138]]
rates if all corresponding eligibility standards in E632 for Enhanced 
Carrier Route High Density or Saturation rates are met.

3.3  Other Rates

    A walk-sequence rate mailing may include pieces claimed at the 
carrier route and basic rates, but only the carrier route pieces count 
toward the standard in 3.1. The basic rate pieces must be prepared as 
required for residual pieces under 1.0, but they do not have to meet a 
separate 200-piece/50-pound minimum. When presented to the USPS, the 
trays or sacks containing the walk-sequence rate pieces must be 
separated from other trays or sacks. Any effective separation method 
may be used. A walk-sequence rate mailing may not include pieces 
claimed at the 3/5 rate. The 3/5 rate and walk-sequence rate pieces may 
be reported on the same postage statement only under D600.

3.4  Addressing

    Walk-sequence rate mail must meet these addressing standards:
    a. Mailings may be prepared with detached address labels, subject 
to A060.
    b. Pieces prepared with an alternative addressing format must meet 
the applicable standards in A040.
    c. For the 125-piece walk-sequence discount, each piece must have a 
complete delivery address or an address in occupant or exceptional 
format.
    d. For the saturation walk-sequence discount, each piece addressed 
for delivery on a city route must have a complete delivery address or 
an address in occupant or exceptional format, except that official mail 
from certain government entities may also use the simplified format. 
Pieces for delivery on rural or highway contract routes, or through 
general delivery or a post office box, must have a complete delivery 
address or an alternative address format.

3.5  Density Standards

    Walk-sequence rate mailings are subject to these density standards:
    a. There is no minimum volume per 5-digit ZIP Code delivery area. 
Walk-sequence mail need not be sent to all carrier routes within a 5-
digit delivery area.
    b. For the 125-piece walk-sequence discount, at least 125 walk-
sequenced pieces must be prepared for each carrier route for which that 
discount is claimed, except that for carrier routes of 124 or fewer 
possible deliveries, the 125-piece walk-sequence discount may be 
claimed if a piece is addressed to every possible delivery on the 
route. Multiple pieces per delivery address can count toward this 
density standard.
    c. For the saturation walk-sequence discount, pieces must be 
addressed either to 90% or more of the active residential addresses or 
75% or more of the total number of active possible delivery addresses, 
whichever is less, on each carrier route receiving this mail, except 
that mail addressed in the simplified address format must meet the 
coverage standard in A040. Multiple pieces per delivery address do not 
count toward this density standard.
    d. Sacks with fewer than 125 pieces and less than 15 pounds of 
pieces may be prepared to a carrier route when a walk-sequence discount 
is claimed for the contents and the applicable density standard in 3.5b 
or 3.5c is met.

E640  Automation Standard Mail Rates

[Insert text of current E342, E344, and E345 and redesignate as E641; 
revise as follows:]

E641  Automation Regular and Enhanced Carrier Route Standard Mail

1.0  Automation Regular Rates

1.1  All Pieces

    All pieces in an automation rate Regular Standard Mail mailing 
must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of automation rate Regular Standard Mail.
    c. Meet the physical standards in C810 (letters and cards) or C820 
(flats).
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC).
    e. Meet the address quality and coding standards in 1.2 (if 
applicable), A800, and A950.
    f. Be marked, sorted, and documented as specified in M810 (letters 
and cards) or M820 (flats).
    g. Bear an accurate barcode, either a DPBC if a card or letter (on 
the piece or on an insert showing through a barcode window) or a ZIP+4 
barcode or DPBC if a flat, that meets the barcode standards in C840. A 
letter-size mailpiece with a barcode window in the lower right corner 
must have the correct DPBC appearing through that window.

1.2  Enclosed Reply Cards and Envelopes

    Effective January 1, 1997, all courtesy reply and business reply 
mail (BRM) cards and letter-size envelopes provided as enclosures in 
automation rate Regular Standard Mail must meet the standards in C810 
for enclosed cards and envelopes. Mailers must certify that this 
standard has been met when the corresponding mail is presented to the 
USPS.

1.3  Rate Application--Letters and Cards

    Regular automation rates apply to each piece that is sorted under 
M810 into the corresponding qualifying groups:
    a. Groups of 150 or more pieces in 5-digit trays (and all pieces in 
one less-than-full overflow tray) qualify for the 5-Digit automation 
rate. (Preparation to qualify for that rate is optional and need not be 
performed for all 5-digit destinations.)
    b. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
(and all pieces in one less-than-full overflow tray) qualify for the 3-
Digit automation rate.
    c. Pieces in full or overflow AADC trays and in all mixed AADC 
trays qualify for the Basic automation rate.

1.4  Rate Application--Flats

    Regular automation rates apply to each piece that is sorted under 
M820 into the corresponding qualifying groups:
    a. Pieces in 5-digit or 3-digit packages of 10 or more pieces each 
qualify for the 3/5 automation rate.
    b. Pieces in ADC or mixed ADC packages qualify for the Basic 
automation rate.
2.0  Enhanced Carrier Route Rates

2.1  All Pieces

    All pieces in an automation rate Enhanced Carrier Route Standard 
Mail mailing (available for letters only) must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of automation rate Enhanced Carrier Route Standard Mail.
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized) or M810.
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC).
    e. Meet the address quality and coding standards in 1.5, A800, and 
A950.
    f. Bear an accurate DPBC that meets the barcode standards in C840. 
A letter-size mailpiece with a barcode window in the lower right corner 
must have the correct DPBC appearing through that window.

[[Page 10139]]


2.2  Preparation

    Preparation to qualify for any of Enhanced Carrier Route automation 
rates is optional and need not be performed for all carrier routes in a 
5-digit area. An automation rate Enhanced Carrier Route mailing may not 
include pieces at Basic, High Density, and Saturation Enhanced Carrier 
Route rates.

2.3  Carrier Route Information

    Subject to A930 and A950, mailers must apply carrier route codes to 
mailings using CASS-certified software and the current USPS Carrier 
Route Information System (CRIS) scheme or another AIS product 
containing carrier route information. The carrier route information 
must be updated within 90 days before the mailing date. Carrier route 
and City/State File information must be updated within 90 days before 
the mailing date. The automation Basic Carrier Route rate is available 
only for letter-size mail and only for those 5-digit ZIP Code areas 
identified in the USPS City/State File used for address coding.

2.4  Rate Application

    Automation Basic Carrier Route rates apply to each piece that is 
sorted under M810 into full carrier route trays, or in carrier route 
groups of 10 or more pieces each placed in 5-digit carrier routes 
trays. (Preparation to qualify for that rate is optional and need not 
be performed for all carrier routes in a 5-digit area.)

E649  Automation Nonprofit Standard Mail

[Insert text of current eligibility standards in E342, E344, and E345 
and redesignate and renumber as E649.1.0, E649.2.0, and E649.3.0, 
respectively.]
1.0  ZIP+4 Discounts

1.1  All Pieces

    All pieces in a Nonprofit Standard Mail ZIP+4 rate mailing must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be presented at one post office as part of a single mailing of 
at least 200 pieces or 50 pounds of pieces of automation rate Nonprofit 
Standard Mail.
    c. Meet the physical standards in C810.
    d. Bear a delivery address with the correct ZIP Code or ZIP+4 code 
(or, if only prepared with a delivery point barcode (DPBC), the numeric 
equivalent to the DPBC).
    e. Meet the address quality and coding standards of A800 and A950.
    f. Meet the standards in C830 or, for pieces with the correct DPBC, 
the barcode standards in C840.
    g. Be marked, sorted, and documented as specified in M891 or M892.
    h. Separately qualify under the standard for any other discount 
claimed.

1.2  Rate Application

    Nonprofit ZIP+4 rates apply to each piece that also:
    a. Is sorted under M891 or M892 into the corresponding qualifying 
groups described in 1.7 and 1.8.
    b. Bears a delivery address with the correct numeric ZIP+4 code or 
bears the correct DPBC.
    c. Meets the applicable standards in 1.3 through 1.6.

1.3  Barcode Window

    A mailpiece meeting the standards in 1.1 and 1.2, but with a 
barcode window in the lower right corner, may be eligible for any 
Nonprofit automation rate only if the correct DPBC appears through that 
window.

1.4  5-Digit Barcodes

    Nonprofit ZIP+4 rate mailings may include pieces with correct 5-
digit barcodes if those pieces meet the standards in 1.1 and 1.2 and 
the standards for 5-digit barcodes in C840. Such pieces may qualify for 
the Nonprofit ZIP+4 rates only if the barcode is printed on the piece 
and the address contains the correct numeric ZIP+4 code.

1.5  ZIP+4 Barcodes

    Nonprofit ZIP+4 rate mailings may include pieces with correct ZIP+4 
barcodes if the barcode is located in the address block and those 
pieces meet the standards in 1.1 and 1.2 and the standards for ZIP+4 
barcodes in C840. Such pieces may qualify for Nonprofit ZIP+4 rates 
only if, additionally, each has a barcode clear zone (without a window) 
in the lower right corner and bears an address that contains the 
correct numeric ZIP+4 code. Pieces that bear a ZIP+4 barcode in the 
lower right corner may not be included in a Nonprofit ZIP+4 rate 
mailing.

1.6  85% Rule

    At least 85% of all pieces in a Nonprofit ZIP+4 rate mailing 
(regardless of presort level or rate) must bear the correct numeric 
ZIP+4 code or DPBC for the delivery address, as defined by the address 
quality and coding standards in A800 and A950. The 85% requirement 
applies to each mailing unless excepted by other standards.

1.7  Qualifying Tray-Based Presort

    In tray-based mailings under M891, ZIP+4 coded or DPBC pieces in 
full or overflow 5-digit, 3-digit, and SCF trays qualify for the 
Nonprofit 3/5 ZIP+4 rate; other pieces qualify for the Nonprofit 3/5 
rate. One less-than-full SCF tray for the origin SCF is permitted. 
ZIP+4 coded or DPBC pieces in AADC, mixed AADC, or working trays 
qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for 
the Nonprofit Basic rate.

1.8  Qualifying Package-Based Presort

    In package-based mailings under M892, ZIP+4 coded or DPBC pieces in 
5-digit packages of 10 or more pieces each, and 3-digit packages of 50 
or more pieces each, qualify for the Nonprofit 3/5 ZIP+4 rate; other 
pieces in these packages qualify for the Nonprofit 3/5 rate. Residual 
ZIP+4 coded or DPBC pieces qualify for the Nonprofit Basic ZIP+4 rate; 
other pieces qualify for the Nonprofit Basic rate.
2.0  Barcoded Discounts (Letter-Size Pieces)

2.1  All Pieces

    All pieces in a Nonprofit Standard Mail Barcoded rate letter-size 
mailing must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be presented at one post office as part of a single mailing of 
at least 200 pieces or 50 pounds of pieces.
    c. Meet the physical standards in C810.
    d. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), 
the numeric equivalent to the DPBC).
    e. Meet the address quality and coding standards of A800 and A950.
    f. Either bear the correct DPBC meeting the barcode standards in 
C840 or meet the applicable standards in 2.5.
    g. Be marked, sorted, and documented as specified in M893, M894, or 
M895.
    h. Meet the postage payment standards in P013 and P600.
    i. Separately qualify under the standard for any other discount 
claimed.

2.2  Rate Application

    Nonprofit Barcoded rates apply to each piece that also:
    a. Is sorted under M893, M894, or M895 into the corresponding 
qualifying groups described in 2.8, 2.9, and 2.10.
    b. Bears the correct DPBC that meets the barcode standards in C840.
    c. Meets the applicable standards in 2.3 through 2.7.
    
[[Page 10140]]


2.3  Optional Preparation

    At the mailer's option, barcoded Nonprofit Standard Mail may be 
prepared under the standards for Automation Standard Mail in M810, 
including presort. Under this option, barcoded Nonprofit Standard Mail 
may claim Nonprofit carrier route, 5-Digit Barcoded, 3-Digit Barcoded, 
and Basic Barcoded rates if all corresponding eligibility standards in 
E631 and E641 for Automation Carrier Route, 5-Digit, 3-Digit, and Basic 
rates are met.

2.4  Barcode Window

    A mailpiece with a barcode window in the lower right corner is 
ineligible for any Nonprofit automation rate unless the correct DPBC 
appears through that window.

2.5  Pieces Without DPBCs

    Subject to 2.6 and 2.7, Nonprofit Barcoded rate mailings may 
include nonbarcoded, 5-digit barcoded, or ZIP+4 barcoded pieces if each 
such piece (regardless of rate) meets the standards in 2.1, has a 
barcode clear zone in the lower right corner meeting the reflectance 
standards in C840, meets the applicable 5-digit or ZIP+4 barcode 
standards in C840. Additionally, to qualify for a Nonprofit ZIP+4 rate, 
subject to 2.8, 2.9, and 2.10:
    a. Nonbarcoded and 5-digit barcoded pieces must bear an address 
with the correct ZIP+4 code and meet the standards in C830, and must 
not have a window in the lower right corner.
    b. ZIP+4 barcoded pieces must have the barcode in the address 
block, meet the standards in C830, and bear an address with the correct 
ZIP+4 code, and must not have a window in the lower right corner.

2.6  85% Rule

    Subject to 2.7, at least 85% of all pieces in a Nonprofit Barcoded 
rate mailing (regardless of presort level or rate) must bear the 
correct DPBC for the delivery address, as defined by the standards for 
address quality and coding accuracy in A800 and A950. The 85% 
requirement applies to each mailing unless excepted by other standards.

2.7  100% Barcoding

    Each piece must bear the correct delivery point barcode:
    a. In 5-digit trays in a tray-based mailing under M893.
    b. In 5-digit packages in a package-based mailing under M894 or 
M895.
    c. In any mailing containing heavy letters (as defined in C810).

2.8  Qualifying Tray-Based Presort

    In tray-based mailings under M893:
    a. Pieces in full or overflow 5-digit trays qualify for the 5-digit 
Nonprofit Barcoded rate.
    b. In full or overflow 3-digit and SCF trays, DPBC pieces qualify 
for the 3-digit Nonprofit Barcoded rate; subject to 2.5, ZIP+4 coded 
non-DPBC pieces qualify for the Nonprofit \3/5\ ZIP+4 rate; other 
pieces qualify for the Nonprofit \3/5\ rate. One less-than-full SCF 
tray is permitted for the SCF serving the post office where the mailing 
is entered.
    c. In AADC, mixed AADC, and working trays, DPBC pieces qualify for 
the Nonprofit Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC 
pieces qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify 
for the Nonprofit Basic rates.

2.9  Qualifying Two-Tier Package-Based Presort

    In two-tier package-based mailings under M894:
    a. Pieces in 5-digit packages of 10 or more pieces each qualify for 
the Nonprofit 5-digit Barcoded rate.
    b. In 3-digit packages of 50 or more pieces each, DPBC pieces 
qualify for the Nonprofit 3-digit Barcoded rates; subject to 2.5, ZIP+4 
coded non-DPBC pieces qualify for the Nonprofit \3/5\ ZIP+4 rate; other 
pieces qualify for the Nonprofit \3/5\ rate.
    c. In the residual portion, DPBC pieces qualify for the Nonprofit 
Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces 
qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for 
Nonprofit Basic rate.

2.10  Qualifying Three-Tier Package-Based Presort

    In three-tier package-based mailings under M895:
    a. Pieces in 5-digit packages of 10 or more pieces each in the 5-
digit tier qualify for the Nonprofit 5-digit Barcoded rate.
    b. In 3-digit packages of 50 or more pieces each in the 3-digit 
tier, DPBC pieces qualify for the Nonprofit 3-digit Barcoded rate; 
subject to 2.5, ZIP+4 coded non-DPBC pieces qualify for the Nonprofit 
\3/5\ ZIP+4 rate; other pieces qualify for the Nonprofit \3/5\ rate.
    c. In the residual tier, DPBC pieces qualify for the Nonprofit 
Basic Barcoded rate; subject to 2.5, ZIP+4 coded non-DPBC pieces 
qualify for the Nonprofit Basic ZIP+4 rate; other pieces qualify for 
the Nonprofit Basic rate.

3.0  ZIP+4 Barcoded Discounts (Flat-Size Pieces)

3.1  All Pieces

    All pieces in a Nonprofit Standard Mail ZIP+4 Barcoded rate flat-
size mailing must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be presented at one post office as part of a single mailing of 
at least 200 pieces or 50 pounds of pieces.
    c. Meet the physical standards in C820.
    d. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code (or, only if prepared with a delivery point barcode (DPBC), 
the numeric equivalent to the DPBC).
    e. Meet the address quality and coding standards of A800 and A950.
    f. Bear the correct 5-digit barcode, ZIP+4 barcode, or DPBC, 
subject to C840, except for pieces in specific portions of mailings 
prepared under M897.
    g. Be marked, sorted, and documented as specified in M897.
    h. Meet the postage payment standards in P013 and P600.
    i. Separately qualify under the standard for any other discount 
claimed.

3.2  Rate Application

    Nonprofit ZIP+4 Barcoded rates apply to each piece that also:
    a. Is sorted under M897 into the qualifying groups described in 
3.6.
    b. Bears the correct ZIP+4 barcode or DPBC.

3.3  Optional Preparation

    At the mailer's option, barcoded Nonprofit Standard Mail may be 
prepared under the standards for Automation Standard Mail in M820, 
including presort. Under this option, barcoded Nonprofit Standard Mail 
may claim Nonprofit \3/5\ Barcoded and Basic Barcoded rates if all 
corresponding eligibility standards in E631 and E641 for Automation \3/
5\ and Basic rates are met.

3.4  5-Digit Barcodes

    Nonprofit ZIP+4 Barcoded rate mailings may include pieces with 
correct 5-digit barcodes if those pieces meet the standards in 3.1 
through 3.3 and the standards for 5-digit barcodes in C840. Pieces with 
a 5-digit barcode could be eligible for a presort rate under 3.6.

3.5  85% Rule

    Generally, at least 85% of all pieces in a Nonprofit ZIP+4 Barcoded 
rate mailing (regardless of presort level or rate) must bear the 
correct ZIP+4 barcode or DPBC for the delivery address, as defined by 
the standards for address quality and coding accuracy in A800 and A950. 
Remaining pieces must bear the correct 5-digit barcode meeting the 
applicable standards in C840. The 85% requirement applies to each

[[Page 10141]]
mailing unless excepted by other standards. Nonprofit ZIP+4 Barcoded 
rate mailings not meeting the 85% rule must be prepared under 
corresponding standards in M897.

3.6  Presort

    In 5-digit or 3-digit packages of 10 or more pieces each, ZIP+4 
barcoded or DPBC pieces can qualify for the Nonprofit 3/5 ZIP+4 
Barcoded rate; other pieces qualify for the Nonprofit 3/5 rate. In SCF 
packages of 10 or more pieces each, or in residual packages, ZIP+4 
barcoded or DPBC pieces qualify for the Nonprofit Basic ZIP+4 Barcoded 
rate for flats; 5-digit barcoded pieces qualify for the Nonprofit Basic 
rate.

E650  Destination Entry Discounts

E651  Destination Entry--Regular, Nonprofit, and Enhanced Carrier 
Route Standard Mail

[Insert text of current E350 and redesignate as E651; in 1.4, replace 
``bulk third-class mail'' with ``bulk rate Standard Mail (A)''; in 3.9, 
replace ``third-class mail'' with ``Standard Mail (A)''; revise the 
rest of E651 as follows:]
1.0  Basic Standards
1.1  Rate Application
    Regular, Nonprofit, and Enhanced Carrier Route Standard Mail 
meeting the basic standards in E611 and E612 may qualify for the 
destination BMC, SCF, or DDU entry rates if deposited at the correct 
destination postal facility, subject to the general standards below and 
the specific standards in 5.0, 6.0, and 7.0, respectively. Only one 
destination reduction may be claimed for each mailpiece.
* * * * *
5.0  DBMC Discount
[In 5.1, replace ``L708'' with ``L602.'']
* * * * *

5.2  Eligibility

[Add the following text after the first sentence:]
    * * * All pieces in an ADC or AADC sack or tray are eligible for 
the DBMC discount if the ADC or AADC facility ZIP Code (as shown on 
Line 1 of the corresponding container label) is within the service area 
of the BMC at which the sack or tray is deposited. All pieces in a 
palletized ADC package are eligible for the DBMC discount if the ADC 
facility that is the destination of the package is within the service 
area of the BMC at which it is deposited.

[Replace current 5.3 with new 5.3 as follows:]

5.3  Separate Containers

    Separate mixed ADC or mixed AADC sacks or trays must be prepared 
for pieces eligible for and claimed at the DBMC rate and for pieces not 
claimed at the DBMC rate. Otherwise applicable restrictions (e.g., 
minimum volume, number of less-than-full trays) are excepted when 
necessary to comply with this standard. Alternatively, the mailer may 
waive this separation if no pieces in the resulting mixed ADC or mixed 
AADC containers are claimed at the DBMC rate. Separate destination BMC 
sacks or pallets are not required for machinable parcels claimed at the 
DBMC rate.
* * * * *

6.0  DSCF DISCOUNT

6.1  Definition

    For this standard, destination sectional center facility (DSCF) 
refers to the facilities listed in L002, Column C.

6.2  Eligibility

    Pieces in a mailing that meet the standards in 1.0 through 4.0 and 
6.0 are eligible for the DSCF rate when deposited at a DSCF, addressed 
for delivery within that facility's service area, and placed in other 
than an ADC, AADC, mixed ADC, or mixed AADC tray or sack, or BMC sack 
or pallet (as permitted by the standards for the rate claimed) that is 
labeled to that DSCF or to a postal facility within its service area. 
DSCF rate mail may also be eligible for a presort or automation 
discount subject to the corresponding standards.
* * * * *
7.0  DDU Discount

7.1  Definition

    For this standard, destination delivery unit (DDU) refers to the 
facility designated by the USPS district drop shipment coordinator (for 
automation rate Standard Mail) or the facility (post office, branch, 
station, etc.) where the carrier cases mail for delivery to the 
addresses on pieces in the mailing (for other Standard Mail (A)).
* * * * *
[Remove 7.3.]

E652  Destination Entry--Parcel Post

[Insert text of current E450 and redesignate as E652; in 1.4, replace 
``fourth-class'' with ``Standard Mail (B)''; no other change in text.]

E670  Nonprofit Standard Mail

[Insert text of current E370 and redesignate as E670; in 1.1, 1.3, 2.1, 
3.1, 3.3, 4.1, 4.2, 5.1, 5.2, 5.3, 5.4, 5.4a, 5.4b, 5.4c, 5.4d(1), 
5.6a, 5.6b, 5.6b(1), 5.6b(2), 5.6b(3), 5.6e, 5.8, 5.9, 5.10, 5.10c, 
5.11, 5.12, 6.0, 7.1, 7.3, 8.1, 8.3, 9.1, 9.2, 9.3, 9.4, 11.1, and 
11.4, replace ``[s]pecial bulk third-class rate[s],'' ``special bulk 
rate[s],'' or ``special rate[s]'' with ``Nonprofit Standard Mail 
rate[s]''; in 1.3, replace ``for all bulk third-class mail in E311 and 
E312'' with ``in E611 and E612''; in 3.3, 5.4d(2), 5.6b, 5.11, 9.2, and 
9.3b, replace ``third-class'' with ``Standard Mail (A)''; in 5.8d, 
replace the reference ``E211.11.0'' with ``E211''; in 5.10c, replace 
the reference ``E370.5.0'' with ``5.0''; in 9.2, replace ``First-'' 
with ``First-Class'' and ``regular'' with ``Regular or Enhanced Carrier 
Route''; no other change in text.]
F Forwarding and Related Services

F000  Basic Services

F010  Basic Information

[In 3.0d, replace ``fourth-class'' and ``third-class'' with ``Standard 
Mail (B)'' and ``Standard Mail (A),'' respectively; in Exhibit 4.2, 5.2 
(heading and text), 5.2a, 5.2b, 5.2e, 5.2f, 5.2g, and 6.1, replace 
``[S]econd-[C]lass [[M]ail]'' with ``Periodicals''; in 4.4, replace the 
reference ``M011'' with ``M012''; in 4.6b, 5.2e, the table following 
5.2g, 6.1, 7.1, and 8.1e, replace ``third- or fourth-class'' with 
``Standard Mail''; in 4.6d, 5.3b, 5.4 (heading and text), 5.4b, 5.4c, 
5.4d, 5.4e, and 6.3, replace ``[F]ourth-[C]lass [[M]ail]'' with 
``Standard Mail (B)''; in 5.3 (heading and text), 5.3a, 5.3f, 5.3g, the 
table following 5.3g, 6.2, 8.1a, 8.1b, and 8.1e, replace ``[T]hird-
[C]lass [[M]ail]'' with ``Standard Mail (A)''; in 7.1a and 7.2, replace 
``second, third-, or fourth-class'' with ``Periodicals or Standard 
Mail''; in 7.4, replace ``special fourth-class'' with ``Special 
Standard Mail''; in 8.1e, replace ``third- and fourth-class'' with 
``Standard Mail''; no other change in text.]

F020  Forwarding

[In 2.3, 2.4, and 2.6, replace ``First-, second-, and fourth-class mail 
[,] and [all] single-piece rate third-class mail'' with ``First-Class, 
Periodicals, Standard Mail (B), and single-piece rate Standard Mail 
(A)''; in 3.4 (heading and text), replace ``Second-[C]lass'' with 
``Periodicals''; in 3.5 (heading and text), replace ``Third-[C]lass 
[mail],'' ``fourth-class,'' and ``Special Fourth-Class'' with 
``Standard Mail (A),'' ``Standard Mail (B),'' and ``Special Standard 
Mail,'' respectively; in 3.6 (heading and text), replace ``[F]ourth-
[C]lass [mail]'' with ``Standard Mail (B)''; no other change in text.]

[[Page 10142]]


F030  Address Correction, Address Change, and Return Services

[In 1.2 (heading and text) and 2.3 (heading and text), replace 
``[S]econd-[C]lass'' with ``Periodicals''; in 1.3, replace ``third- and 
fourth-class mail'' and ``Express Mail, First-, third-, or fourth-class 
mail'' with ``Standard Mail'' and ``Express Mail, First-Class Mail, and 
Standard Mail,'' respectively; in 3.2d, replace ``third-class mail'' 
with ``Standard Mail (A)''; in 3.2e, replace ``fourth-class mail'' with 
``Standard Mail (B)''; no other change in text.]
G  General Information
* * * * *

G020  Mailing Standards

[In 2.2, replace ``mailing statement'' with ``postage statement''; no 
other change.]
* * * * *
L  LABELING LISTS

L000  General Use

L001  Optional Multi-ZIP Coded Post Offices--Preferred Periodicals 
and Nonprofit Standard Mail Only

[Amend the heading as follows; no change to list entries.]

    As permitted by the standards for the rate claimed, Preferred 
Periodicals mailings may be sorted to the following multi-ZIP Coded 
cities.
* * * * *
[Replace current L002 as follows:]

L002  3-Digit ZIP Code Prefix Matrix

    This table provides information about 3-digit ZIP Code prefixes as 
follows:

------------------------------------------------------------------------
                  Column A For 3-    Column B For 3-                    
                       digit           digit/scheme     Column C For SCF
  3-Digit ZIP      destinations,      destinations,      destinations,  
  code prefix     label container    label container    label container 
                         to                 to                 to       
------------------------------------------------------------------------
001 X                                                                   
002 X                                                                   
003 X                                                                   
004............  WESTCHESTER NY     WESTCHESTER NY     SCF WESTCHESTER  
                  004.               004.               NY 105.         
005............  MID-ISLAND NY 005  MID-ISLAND NY 005  SCF MID-ISLAND NY
                                                        117.            
006............  SAN JUAN PR 006..  SAN JUAN PR 006 S  SCF SAN JUAN PR  
                                                        006.            
007............  SAN JUAN PR 007..  SAN JUAN PR 006 S  SCF SAN JUAN PR  
                                                        006.            
008............  (1)..............  SAN JUAN PR 006 S  (1).             
009............  SAN JUAN PR 009 U  SAN JUAN PR 006 S  SCF SAN JUAN PR  
                                                        006.            
010............  SPRINGFIELD MA     SPRINGFIELD MA     SCF SPRINGFIELD  
                  010.               010 S.             MA 010.         
011............  SPRINGFIELD MA     SPRINGFIELD MA     SCF SPRINGFIELD  
                  011 U.             010 S.             MA 010.         
012............  PITTSFIELD MA 012  PITTSFIELD MA 012  PITTSFIELD MA 012
                                                        D.              
013............  SPRINGFIELD MA     SPRINGFIELD MA     SCF SPRINFIELD MA
                  013.               010 S.             010.            
014............  WORCESTER MA 014.  WORCESTER MA 015   SCF WORCESTER MA 
                                     S.                 015.            
015............  WORCESTER MA 015.  WORCESTER MA 015   SCF WORCESTER MA 
                                     S.                 015.            
016............  WORCESTER MA 016   WORCESTER MA 016.  SCF WORCESTER MA 
                  U.                                    015.            
017............  WORCESTER MA 017.  WORCESTER MA 015   SCF WORCESTER MA 
                                     S.                 015.            
018............  MIDDLESEX-ESSX MA  MIDDLESEX-ESSX MA  SCF MIDDLESEX-   
                  018.               018 S.             ESSX MA 018.    
019............  MIDDLESEX-ESSX MA  MIDDLESEX-ESSX MA  SCF MIDDLESEX-   
                  019.               018 S.             ESSX MA 018.    
020............  BROCKTON MA 020..  BROCKTON MA 023 S  SCF BROCKTON MA  
                                                        023.            
021............  BOSTON MA 021 U..  BOSTON MA 021 S..  SCF BOSTON MA    
                                                        021.            
022............  BOSTON MA 022 U..  BOSTON MA 021 S..  SCF BOSTON MA    
                                                        021.            
023............  BROCKTON MA 023..  BROCKTON MA 023 S  SCF BROCKTON MA  
                                                        023.            
024............  BROCKTON MA 024 U  BROCKTON MA 023 S  SCF BROCKTON MA  
                                                        023.            
025............  BUZZARDS BAY MA    BUZZARDS BAY MA    SCF BUZZARDS BAY 
                  025.               025 S.             MA 025.         
026............  BUZZARDS BAY MA    BUZZARDS BAY MAY   SCF BUZZARDS BAY 
                  026.               025 S.             MA 025.         
027............  PROVIDENCE RI 027  PROVIDENCE RI 028  SCF PROVIDENCE RI
                                     S.                 028.            
028............  PROVIDENCE RI 028  PROVIDENCE RI 028  SCF PROVIDENCE RI
                                     S.                 028.            
029............  PROVIDENCE RI 029  PROVIDENCE RI 029  SCF PROVIDENCE RI
                  U.                                    028.            
030............  MANCHESTER NH 030  MANCHESTER NH 030   SCF MANCHESTER  
                                                        NH 030.         
031............  MANCHESTER NH 031  MANCHESTER NH 031  SCF MANCHESTER NH
                  U.                                    030.            
032............  MANCHESTER NH 032  MANCHESTER NH 032  SCF MANCHESTER NH
                                                        030.            
033............  CONCORD NH 033 U.  CONCORD NH 033...  SCF MANCHESTER NH
                                                        030.            
034............  MANCHESTER NH 034  MANCHESTER NH 034  SCF MANCHESTER NH
                                                        030.            
035............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  035.               051 S.             VT 050.         
                                    SCHEME B                            
036............  WHITE RVR JCT 036  WHITE RVR JCT VT   SCF WHITE RVR JCT
                                     051 S.             VT 050.         
                                    SCHEME B                            
037............  WHITE RVR JCT 037  WHITE RVR JCT VT   SCF WHITE RVR JCT
                                     050 S.             VT 050.         
                                    SCHEME C.........                   
038............  PORTSMOUTH NH 038  PORTSMOUTH NH 038  SCF PORTSMOUTH NH
                                     S.                 038.            
039............  PORTSMOUTH NH 039  PORTSMOUTH NH 038  SCF PORTSMOUTH NH
                                     S.                 038.            
040............  PORTLAND ME 040..  PORTLAND ME 040..  SCF PORTLAND ME  
                                                        040.            
041............  PORTLAND ME 041 U  PORTLAND ME 041..  SCF PORTLAND ME  
                                                        040.            
042............  PORTLAND ME 042..  PORTLAND ME 042..  SCF PORTLAND ME  
                                                        040.            
043............  PORTLAND ME 043..  PORTLAND ME 043 S  SCF PORTLAND ME  
                                                        040.            
044............  BANGOR ME 044....  BANGOR ME 044....  SCF BANGOR ME    
                                                        044.            
045............  PORTLAND ME 045..  PORTLAND ME 043 S  SCF PORTLAND ME  
                                                        040             
046............  BANGOR ME 046....  BANGOR ME 046....  SCF BANGOR ME    
                                                        044.            
047............  BANGOR ME 047....  BANGOR ME 047....  SCF BANGOR ME    
                                                        044.            
048............  PORTLAND ME 048..  PORTLAND ME 048..  SCF PORTLAND ME  
                                                        040             
049............  BANGOR ME 049....  BANGOR ME 049....  SCF BANGOR ME    
                                                        044.            

[[Page 10143]]
                                                                        
050............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  050.               050 S.             VT 050.         
                                    SCHEME C                            
051............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  051.               051 S.             VT 050.         
                                    SCHEME B                            
052............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  052.               051 S.             VT 050.         
                                    SCHEME B                            
053............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  053.               051 S.             VT 050.         
                                    SCHEME B                            
054............  BURLINGTON VT 054  BURLINGTON VT 054  SCF BURLINGTON VT
                                     S.                 054.            
055............  MIDDLESEX-ESSX MA  MIDDLESEX-ESSX MA  SCF MIDDLESEX-   
                  055.               018 S.             ESSX MA 018.    
056............  BURLINGTON VT 056  BURLINGTON VT 054  SCF BURLINGTON VT
                                     S.                 054.            
057............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  057.               057 S.             VT 050.         
                                    SCHEME A                            
058............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  058.               057 S.             VT 050.         
                                    SCHEME A                            
059............  WHITE RVR JCT VT   WHITE RVR JCT VT   SCF WHITE RVR JCT
                  059.               051 S.             VT 050.         
                                    SCHEME B                            
060............  HARTFORD CT 060..  HARTFORD CT 060..  SCF HARTFORD CT  
                                                        060.            
061............  HARTFORD CT 061 U  HARTFORD CT 061..  SCF HARTFORD CT  
                                                        060.            
062............  HARTFORD CT 062..  HARTFORD CT 062..  SCF HARTFORD CT  
                                                        060.            
063............  SOUTHERN CT 063..  SOUTHERN CT 063..  SCF SOUTHERN CT  
                                                        064.            
064............  SOUTHERN CT 064..  SOUTHERN CT 064..  SCF SOUTHERN CT  
                                                        064.            
065............  NEW HAVEN CT 065   NEW HAVEN CT 065.  SCF SOUTHERN CT  
                  U.                                    064.            
066............  BRIDGEPORT CT 066  BRIDGEPORT CT 066  SCF SOUTHERN CT  
                  U.                                    064.            
067............  WATERBURY CT 067.  WATERBURY CT 067.  WATERBURY CT     
                                                        067.D           
068............  STAMFORD CT 068..  STAMFORD CT 068 S  SCF STAMFORD CT  
                                                        068.            
069............  STAMFORD CT 069 U  STAMFORD CT 068 S  SCF STAMFORD CT  
                                                        068.            
070............  NEWARK NJ 070....  NEWARK NJ 070....  SCF NEWARK NJ    
                                                        070.            
071............  NEWARK NJ 071 U..  NEWARK NJ 071....  SCF NEWARK NJ    
                                                        070.            
072............  ELIZABETH NJ 072   ELIZABETH NJ 072.  SCF NEWARK NJ 070
                  U.                                                    
073............  JERSEY CITY NJ     JERSEY CITY NJ     SCF NEWARK NJ    
                  073 U.             073.               070.            
074............  PATERSON NJ 074..  HACKENSACK NJ 074  SCF PATERSON NJ  
                                     S.                 074.            
075............  PATERSON NJ 075 U  PATERSON NJ 075..  SCF PATERSON NJ  
                                                        074.            
076............  HACKENSACK NJ 076  HACKENSACK NJ 074  HACKENSACK NJ    
                                     S.                 076.D           
077............  MONMOUTH NJ 077..  KILMER NJ 077 S..  MONMOUTH NJ 077.D
078............  WEST JERSEY NJ     WEST JERSEY NJ     SCF WEST JERSEY  
                  078.               078 S.             NJ 079.         
079............  WEST JERSEY NJ     WEST JERSEY NJ     SCF WEST JERSEY  
                  079.               078 S.             NJ 079.         
080............  SOUTH JERSEY NJ    SOUTH JERSEY NJ    SCF SOUTH JERSEY 
                  080.               080 S.             NJ 080.         
                                    SCHEME A                            
081............  CAMDEN NJ 081 U..  SOUTH JERSEY NJ    SCF SOUTH JERSEY 
                                     080 S.             NJ 080.         
                                    SCHEME A                            
082............  SOUTH JERSEY NJ    SOUTH JERSEY NJ    SCF SOUTH JERSEY 
                  082.               080 S.             NJ 080.         
                                    SCHEME B                            
083............  SOUTH JERSEY NJ    SOUTH JERSEY NJ    SCF SOUTH JERSEY 
                  083.               080 S.             NJ 080.         
                                    SCHEME B                            
084............  ATLANTIC CITY NJ   SOUTH JERSEY NJ    SCF SOUTH JERSEY 
                  084 U.             080 S.             NJ 080.         
                                    SCHEME B                            
085............  TRENTON NJ 085...  TRENTON NJ 085 S.  SCF TRENTON NJ   
                                                        085.            
086............  TRENTON NJ 086 U.  TRENTON NJ 085 S.  SCF TRENTON NJ   
                                                        085.            
087............  TRENTON NJ 087...  TRENTON NJ 085 S.  SCF TRENTON NJ   
                                                        085.            
088............  KILMER NJ 088....  KILMER NJ 077 S..  SCF KILMER NJ    
                                                        088.            
089............  NEW BRUNSWICK NJ   NEW BRUNSWICK NJ   SCF KILMER NJ    
                  089 U.             089.               088.            
090............  APO AE 090.......  APO AE 090.......                   
091............  APO AE 091.......  APO AE 091.......                   
092............  APO AE 092.......  APO AE 092.......                   
093............  APO AE 093.......  APO AE 093.......  .................
094............  APO/FPO AE 094...  APO/FPO AE 094...  .................
095............  FPO AE 095.......  FPO AE 095.......  .................
096............  APO/FPO AE 096...  APO/FPO AE 096...  .................
097............  APO/FPO AE 097...  APO/FPO AE 097...  .................
098............  APO/FPO AE 098...  APO/FPO AE 098...  .................
099 X                                                                   
100............  NEW YORK NY 100 U  NEW YORK NY 100..  SCF NEW YORK NY  
                                                        100.            
101............  NEW YORK NY 101 U  NEW YORK NY 101..  SCF NEW YORK NY  
                                                        100.            
102............  NEW YORK NY 102 U  NEW YORK NY 102..  SCF NEW YORK NY  
                                                        100.            
103............  STATEN ISLAND NY   STATEN ISLAND NY   STATEN ISLAND NY 
                  103 U.             103.               103 D.          
104............  BRONX NY 104 U...  BRONX NY 104.....  BRONX NY 104 D.  
105............  WESTCHESTER NY     WESTCHESTER NY     SCF WESTCHESTER  
                  105.               105.               NY 105.         
106............  WHITE PLAINS NY    WHITE PLAINS NY    SCF WESTCHESTER  
                  106 U.             106.               NY 105.         
107............  YONKERS NY 107 U.  YONKERS NY 107...  SCF WESTCHESTER  
                                                        NY 105.         
108............  NEW ROCHELLE NY    NEW ROCHELLE NY    SCF WESTCHESTER  
                  108 U.             108.               NY 105.         
109............  ROCKLAND NY 109..  ROCKLAND NY 109..  ROCKLAND NY 109  
                                                        D.              

[[Page 10144]]
                                                                        
110............  QUEENS NY 110....  QUEENS NY 110 S..  SCF QUEENS NY    
                                                        110.            
111............  LONG ISLAND CITY   LONG ISLAND CITY   LONG ISLAND CITY 
                  NY 111 U.          NY 111.            NY 111 D.       
112............  BROOKLYN NY 112 U  BROOKLYN NY 112..  BROOKLYN NY 112  
                                                        D.              
113............  FLUSHING NY 113 U  QUEENS NY 110 S..  SCF QUEENS NY    
                                                        110.            
114............  JAMAICA NY 114 U.  QUEENS NY 110 S..  SCF QUEENS NY    
                                                        110.            
115............  WESTERN NASSAU NY  WESTERN NASSAU NY  WESTERN NASSAU NY
                  115.               115.               115 D.          
116............  FAR ROCKAWAY NY    QUEENS NY 110 S..  SCF QUEENS NY    
                  116 U.                                110.            
117............  MID-ISLAND NY 117  MID-ISLAND NY 117  SCF MID-ISLAND NY
                                                        117.            
118............  HICKSVILLE NY 118  HICKSVILLE NY 118  SCF MID-ISLAND NY
                  U.                                    117.            
119............  MID-ISLAND NY 119  MID-ISLAND NY 119  SCF MID-ISLAND NY
                                                        117.            
120............  ALBANY NY 120....  ALBANY NY 120 S..  SCF ALBANY NY    
                                                        120.            
121............  ALBANY NY 121....  ALBANY NY 120 S..  SCF ALBANY NY    
                                                        120.            
122............  ALBANY NY 122 U..  ALBANY NY 120 S..  SCF ALBANY NY    
                                                        120.            
123............  SCHENECTADY NY     ALBANY NY 120 S..  SCF ALBANY NY    
                  123 U.                                120.            
124............  MID-HUDSON NY 124  MID-HUDSON NY 124  SCF MID-HUDSON NY
                                     S.                 125.            
125............  MID-HUDSON NY 125  MID-HUDSON NY 124  SCF MID-HUDSON NY
                                     S.                 125.            
126............  POUGHKEEPSIE NY    POUGHKEEPSIE NY    SCF MID-HUDSON NY
                  126 U.             126.               125.            
127............  MID-HUDSON NY 127  MID-HUDSON NY 124  SCF MID-HUDSON NY
                                     S.                 125.            
128............  GLENS FALLS NY     GLENS FALLS NY     GLENS FALLS NY   
                  128.               128.               128 D.          
129............  PLATTSBURGH NY     PLATTSBURGH NY     PLATTSBURGH NY   
                  129.               129.               129 D.          
130............  SYRACUSE NY 130..  SYRACUSE NY 130 S  SCF SYRACUSE NY  
                                                        130.            
131............  SYRACUSE NY 131..  SYRACUSE NY 130 S  SCF SYRACUSE NY  
                                                        130.            
132............  SYRACUSE NY 132U.  SYRACUSE NY 130 S  SCF SYRACUSE NY  
                                                        130.            
133............  UTICA NY 133.....  UTICA NY 133 S...  SCF UTICA NY 133.
134............  UTICA NY 134.....  UTICA NY 133 S...  SCF UTICA NY 133.
135............  UTICA NY 135 U...  UTICA NY 135.....  SCF UTICA NY 133.
136............  WATERTOWN NY 136.  WATERTOWN NY 136.  WATERTOWN NY 136 
                                                        D.              
137............  BINGHAMTON NY 137  BINGHAMTON NY 137  SCF BINGHAMTON NY
                                     S.                 137.            
138............  BINGHAMTON NY 138  BINGHAMTON NY 137  SCF BINGHAMTON NY
                                     S.                 137.            
139............  BINGHAMTON NY 139  BINGHAMTON NY 137  SCF BINGHAMTON NY
                  U.                 S.                 137.            
140............  BUFFALO NY 140...  BUFFALO NY 140 S.  SCF BUFFALO NY   
                                                        140.            
141............  BUFFALO NY 141...  BUFFALY NY 140 S.  SCF BUFFALY NY   
                                                        140.            
142............  BUFFALO NY 142 U.  BUFFALO NY 140 S.  SCF BUFFALO NY   
                                                        140.            
143............  NIAGARA FALLS NY   BUFFALO NY 140 S.  SCF BUFFALO NY   
                  143 U.                                140.            
144............  ROCHESTER NY 144.  ROCHESTER NY 144.  SCF ROCHESTER NY 
                                                        144.            
145............  ROCHESTER NY 145.  ROCHESTER NY 145.  SCF ROCHESTER NY 
                                                        144.            
146............  ROCHESTER NY 146   ROCHESTER NY 146.  SCF ROCHESTER NY 
                  U.                                    144.            
147............  JAMESTOWN NY 147.  JAMESTOWN NY 147.  JAMESTOWN NY 147 
                                                        D.              
148............  ELMIRA NY 148....  ELMIRA NY 148....  SCF ELMIRA NY    
                                                        148.            
149............  ELMIRA NY 149 U..  ELMIRA NY 149....  SCF ELMIRA NY    
                                                        148.            
150............  PITTSBURGH PA 150  PITTSBURGH PA 150  SCF PITTSBURGH PA
                                                        150.            
151............  PITTSBURGH PA 151  PITTSBURGH PA 151  SCF PITTSBURGH PA
                                                        150.            
152............  PITTSBURGH PA 152  SCF PITTSBURGH PA                   
                                     150..                              
153............  PITTSBURGH PA 153  PITTSBURGH PA 153  SCF PITTSBURGH PA
                                                        150.            
154............  PITTSBURGH PA 154  PITTSBURGH PA 154  SCF PITTSBURGH PA
                                                        150.            
155............  JOHNSTOWN PA 155.  JOHNSTOWN PA 155   SCF JOHNSTOWN PA 
                                     S.                 159.            
156............  GREENSBURG PA 156  GREENSBURG PA 156  GREENSBURG PA 156
                                                        D.              
157............  JOHNSTOWN PA 157.  JOHNSTOWN PA 155   SCF JOHNSTOWN PA 
                                     S.                 159.            
158............  DUBOIS PA 158....  DUBOIS PA 158....  DUBOIS PA 158 D. 
159............  JOHNSTOWN PA 159.  JOHNSTOWN PA 159.  SCF JOHNSTOWN PA 
                                                        159.            
160............  NEW CASTLE PA 160  NEW CASTLE PA 160  SCF NEW CASTLE PA
                                                        161.            
161............  NEW CASTLE PA 161  NEW CASTLE PA 161  SCF NEW CASTLE PA
                                                        161.            
162............  NEW CASTLE PA 162  NEW CASTLE PA 162  SCF NEW CASTLE PA
                                                        161.            
163............  OIL CITY PA 163..  OIL CITY PA 163..  OIL CITY PA 163.D
164............  ERIE PA 164......  ERIE PA 164 S....  SCF ERIE PA 164. 
165............  ERIE PA 165 U....  ERIE PA 164 S....  SCF ERIE PA 164. 
166............  ALTOONA PA 166...  ALTOONA PA 166...  SCF ALTOONA PA   
                                                        166.            
167............  BRADFORD PA 167..  BRADFORD PA 167..  BRADFORD PA 167.D
168............  ALTOONA PA 168...  ALTOONA PA 168...  SCF ALTOONA PA   
                                                        166.            
169............  WILLIAMSPORT PA    WILLIAMSPORT PA    SCF WILLIAMSPORT 
                  169.               169 S.             PA 177.         
170............  HARRISBURG PA 170  HARRISBURG PA 170  SCF HARRISBURG PA
                                                        170.            
171............  HARRISBURG PA 171  HARRISBURG PA 171  SCF HARRISBURG PA
                  U.                                    170.            
172............  HARRISBURG PA 172  HARRISBURG PA 172  SCF HARRISBURG PA
                                                        170.            
173............  LANCASTER PA 173.  LANCASTER PA 173.  SCF LANCASTER PA 
                                                        173.            
174............  YORK PA 174 U....  YORK PA 174......  SCF LANCASTER PA 
                                                        173.            
175............  LANCASTER PA 175.  LANCASTER PA 175.  SCF LANCASTER PA 
                                                        173.            
176............  LANCASTER PA 176   LANCASTER PA 176.  SCF LANCASTER PA 
                  U.                                    173.            
177............  WILLIAMSPORT PA    WILLIAMSPORT PA    SCF WILLIAMSPORT 
                  177.               169 S.             PA 177.         
178............  HARRISBURG PA 178  HARRISBURG PA 178  SCF HARRISBURG PA
                                                        170.            
179............  READING PA 179...  READING PA 179...  SCF READING PA   
                                                        195.            
180............  LEHIGH VALLEY PA   LEHIGH VALLEY PA   SCF LEHIGH VALLEY
                  180.               180 S.             PA 180.         
181............  ALLENTOWN PA 181   LEHIGH VALLEY PA   SCF LEHIGH VALLEY
                  U.                 180 S.             PA 180.         

[[Page 10145]]
                                                                        
182............  WILKES BARRE PA    WILKES BARRE PA    SCF WILKES BARRE 
                  182.               182.               PA 186.         
183............  LEHIGH VALLEY PA   LEHIGH VALLEY PA   SCF LEHIGH VALLEY
                  183.               180 S.             PA 180          
184............  SCRANTON PA 184..  SCRANTON PA 184..  SCF SCRANTON PA  
                                                        184.            
185............  SCRANTON PA 185 U  SCRANTON PA 185..  SCF SCRANTON PA  
                                                        184.            
186............  WILKES BARRE PA    WILKES BARRE PA    SCF WILKES BARRE 
                  186.               186.               PA 186.         
187............  WILKES BARRE PA    WILKES BARRE PA    SCF WILKES BARRE 
                  187 U.             187.               PA 186.         
188............  SCRANTON PA 188..  SCRANTON PA 188..  SCF SCRANTON PA  
                                                        184.            
189............  SOUTHEASTERN PA    SOUTHEASTERN PA    SCF SOUTHEASTERN 
                  189.               189.               PA 189.         
190............  PHILADELPHIA PA    PHILADELPHIA PA    SCF PHILADELPHIA 
                  190.               190.               PA 190.         
191............  PHILADELPHIA PA    PHILADELPHIA PA    SCF PHILADELPHIA 
                  191 U.             191 S.             PA 190.         
192............  PHILADELPHIA PA    PHILADELPHIA PA    SCF PHILADELPHIA 
                  192.               191 S.             PA 190.         
193............  SOUTHEASTERN PA    SOUTHEASTERN PA    SCF SOUTHEASTERN 
                  193.               193 S.             PA 189.         
194............  SOUTHEASTERN PA    SOUTHEASTERN PA    SCF SOUTHEASTERN 
                  194.               193 S.             PA 189.         
195............  READING PA 195...  READING PA 195...  SCF READING PA   
                                                        195.            
196............  READING PA 196 U.  READING PA 196...  SCF READING PA   
                                                        195.            
197............  WILMINGTON DE 197  WILMINGTON DE 197  SCF WILMINGTON DE
                                     S.                 197.            
198............  WILMINGTON DE 198  WILMINGTON DE 197  SCF WILMINGTON DE
                  U.                 S.                 197.            
199............  WILMINGTON DE 199  WILMINGTON DE 197  SCF WILMINGTON DE
                                     S.                 197.            
200............  WASHINGTON DC 200  WASHINGTON DC 200  SCF WASHINGTON DC
                  U.                                    200.            
201............  NORTHERN VA 201..  NORTHERN VA 201..  SCF NORTHERN VA  
                                                        220.            
202............  WASHINGTON DC 202  WASHINGTON DC 202  SCF WASHINGTON DC
                                     S.                 200.            
203............  WASHINGTON DC 203  WASHINGTON DC 202  SCF WASHINGTON DC
                                     S.                 200.            
204............  WASHINGTON DC 204  WASHINGTON DC 202  SCF WASHINGTON DC
                                     S.                 200.            
205............  WASHINGTON DC 205  WASHINGTON DC 202  SCF WASHINGTON DC
                                     S.                 200.            
206............  SOUTHERN MD 206..  SOUTHERN MD 206..  SCF SOUTHERN MD  
                                                        206.            
207............  SOUTHERN MD 207..  SOUTHERN MD 207..  SCF SOUTHERN MD  
                                                        206.            
208............  SUBURBAN MD 208..  SUBURBAN MD 208 S  SCF SUBURBAN MD  
                                                        208.            
209............  SIVLER SPRING MD   SUBURBAN MD 208 S  SCF SUBURBAN MD  
                  209 U.                                208.            
210............  BALTIMORE MD 210.  BALTIMORE MD 210   SCF BALTIMORE MD 
                                     S.                 210.            
211............  BALTIMORE MD 211.  BALTIMORE MD 210   SCF BALTIMORE MD 
                                     S.                 210.            
212............  BALTIMORE MD 212   BALTIMORE MD 212.  SCF BALTIMORE MD 
                  U.                                    210.            
213X                                                                    
214............  ANNAPOLIS MD 214   ANNAPOLIS MD 214.  SCF BALTIMORE MD 
                  U.                                    210.            
215............  CUMBERLAND MD 215  CUMBERLAND MD 215  SCF CUMBERLAND MD
                                                        215.            
216............  EASTON MD 216....  EASTON MD 216....  EASTON MD 216.D  
217............  FREDERICK MD 217.  FREDERICK MD 217.  FREDERICK MD     
                                                        217.D           
218............  SALISBURY MD 218.  SALISBURY MD 218.  SALISBURY MD     
                                                        218.D           
219............  BALTIMORE MD 219.  BALTIMORE MD 210   SCF BALTIMORE MD 
                                     S.                 210.            
220............  NORTHERN VA 220..  NORTHERN VA 220..  SCF NORTHERN VA  
                                                        220.            
221............  NORTHERN VA 221..  NORTHERN VA 221..  SCF NORTHERN VA  
                                                        220.            
222............  ARLINGTON VA 222   ARLINGTON VA 222.  SCF NORTHERN VA  
                  U.                                    220.            
223............  ALEXANDRIA VA 223  ALEXANDRIA VA 223  SCF NORTHERN VA  
                  U.                                    220.            
224............  RICHMOND VA 224..  RICHMOND VA 224 S  SCF RICHMOND VA  
                                    SCHEME B            230.            
225............  RICHMOND VA 225..  RICHMOND VA 224 S  SCF RICHMOND VA  
                                    SCHEME B            230.            
226............  WINCHESTER VA 226  WINCHESTER VA 226  WINCHESTER VA    
                                                        226.D           
227............  CULPEPER VA 227..  CULPEPER VA 227..  CULPEPER VA 227.D
228............  CHARLOTTESVILLE    CHARLOTTESVILLE    SCF              
                  VA 228.            VA 228.            CHARLOTTESVILLE 
                                                        VA 229.         
229............  CHARLOTTESVILLE    CHARLOTTESVILLE    SCF              
                  VA 229.            VA 229.            CHARLOTTESVILLE 
                                                        VA 229.         
230............  RICHMOND VA 230..  RICHMOND VA 230 S  SCF RICHMOND VA  
                                    SCHEME A            230.            
231............  RICHMOND VA 231..  RICHMOND VA 230 S  SCF RICHMOND VA  
                                    SCHEME A            230.            
232............  RICHMOND VA 232 U  RICHMOND VA 232..  SCF RICHMOND VA  
                                                        230.            
233............  NORFOLK VA 233...  NORFOLK VA 233 S.  SCF NORFOLK VA   
                                                        233.            
234............  NORFOLK VA 234...  NORFOLK VA 233 S.  SCF NORFOLK VA   
                                                        233.            
235............  NORFOLK VA 235 U.  NORFOLF VA 233 S.  SCF NORFOLK VA   
                                                        233.            
236............  NORFOLK VA 236...  NORFOLK VA 233 S.  SCF NORFOLK VA   
                                                        233.            
237............  PORTSMOUTH VA 237  NORFOLK VA 233 S.  SCF NORFOLK VA   
                  U.                                    233.            
238............  RICHMOND VA 238..  RICHMOND VA 224 S  SCF RICHMOND VA  
                                    SCHEME B            230.            
239............  FARMVILLE VA 239.  FARMVILLE VA 239.  FARMVILLE VA     
                                                        239.D           
240............  ROANOKE VA 240...  ROANOKE VA 240 S.  SCF ROANOKE VA   
                                                        240.            
241............  ROANOKE VA 241...  ROANOKE VA 240 S.  SCF ROANOKE VA   
                                                        240.            
242............  BRISTOL VA 242...  BRISTOL VA 242...  BRISTOL VA 242.D 
243............  ROANOKE VA 243...  ROANOKE VA 243...  SCF ROANOKE VA   
                                                        240.            
244............  CHARLOTTESVILLE    CHARLOTTESVILLE    SCF              
                  VA 244.            VA 244.            CHARLOTTESVILLE 
                                                        VA 229.         
245............  LYNCHBURG VA 245.  LYNCHBURG VA 245.  LYNCHBURG VA     
                                                        245.D           
246............  BLUEFIELD WV 246.  BLUEFIELD WV 246.  SCF BLUEFIELD WV 
                                                        247.            
247............  BLUEFIELD WV 247.  BLUEFIELD WV 247.  SCF BLUEFIELD WV 
                                                        247.            
248............  BLUEFIELD WV 248.  BLUEFIELD WV 248.  SCF BLUEFIELD WV 
                                                        247.            

[[Page 10146]]
                                                                        
249............  LEWISBURG WV 249.  LEWISBURG WV 249.  LEWISBURG WV     
                                                        249.D           
250............  CHARLESTON WV 250  CHARLESTON WV 250  SCF CHARLESTON WV
                                     S.                 250.            
251............  CHARLESTON WV 251  CHARLESTON WV 250  SCF CHARLESTON WV
                                     S.                 250.            
252............  CHARLESTON WV 252  CHARLESTON WV 250  SCF CHARLESTON WV
                                     S.                 250.            
253............  CHARLESTON WV 253  CHARLESTON WV 253  SCF CHARLESTON WV
                  U.                                    250.            
254............  MARTINSBURG WV     MARTINSBURG WV     MARTINSBURG WV   
                  254.               254.               254.D           
255............  HUNTINGTON WV 255  HUNTINGTON WV 255  SCF HUNTINGTON WV
                                                        255.            
256............  HUNTINGTON WV 256  HUNTINGTON WV 256  SCF HUNTINGTON WV
                                                        255.            
257............  HUNTINGTON WV 257  HUNTINGTON WV 257  SCF HUNTINGTON WV
                  U.                                    255.            
258............  BECKLEY WV 258...  BECKLEY WV 258...  SCF BECKLEY WV   
                                                        258.            
259............  BECKLEY WV 259...  BECKLEY WV 259...  SCF BECKLEY WV   
                                                        258.            
260............  WHEELING WV 260..  WHEELING WV 260..  WHEELING WV 260.D
261............  PARKERSBURG WV     PARKERSBURG WV     PARKERSBURG WV   
                  261.               261.               261.D           
262............  CLARKSBURG WV 262  CLARKSBURG WV 262  SCF CLARKSBURG WV
                                                        263.            
263............  CLARKSBURG WV 263  CLARKSBURG WV 263  SCF CLARKSBURG WV
                                                        263.            
264............  CLARKSBURG WV 264  CLARKSBURG WV 264  SCF CLARKSBURG WV
                                                        263.            
265............  CLARKSBURG WV 265  CLARKSBURG WV 265  SCF CLARKSBURG WV
                                                        263.            
266............  GASSAWAY WV 266..  GASSAWAY WV 266..  GASSAWAY WV 266.D
267............  CUMBERLAND MD 267  CUMBERLAND MD 267  SCF CUMBERLAND MD
                                                        215.            
268............  PETERSBURG WV 268  PETERSBURG WV 268  PETERSBURG WV    
                                                        268.D           
269 X                                                                   
270............  GREENSBORO NC 270  GREENSBORO NC 270  SCF GREENSBORO NC
                                                        270.            
271............  WINSTON-SALEM NC   WINSTON-SALEM NC   SCF GREENSBORO NC
                  271 U.             271.               270.            
272............  GREENSBORO NC 272  GREENSBORO NC 272  SCF GREENSBORO NC
                                                        270.            
273............  GREENSBORO NC 273  GREENSBORO NC 273  SCF GREENSBORO NC
                                                        270.            
274............  GREENSBORO NC 274  GREENSBORO NC 274  SCF GREENSBORO NC
                  U.                                    270.            
275............  RALEIGH NC 275...  RALEIGH NC 275...  SCF RALEIGH NC   
                                                        275.            
276............  RALEIGH NC 276 U.  RALEIGH NC 276...  SCF RALEIGH NC   
                                                        275.            
277............  DURHAM NC 277 U..  DURHAM NC 277....  SCF RALEIGH NC   
                                                        275.            
278............  ROCKY MOUNT NC     ROCKY MOUNT NC     SCF ROCKY MOUNT  
                  278.               278 S.             NC 278.         
279............  ROCKY MOUNT NC     ROCKY MOUNT NC     SCF ROCKY MOUNT  
                  279.               278 S.             NC 278.         
280............  CHARLOTTE NC 280.  CHARLOTTE NC 280   SCF CHARLOTTE NC 
                                     S.                 280.            
281............  CHARLOTTE NC 281.  CHARLOTTE NC 280   SCF CHARLOTTE NC 
                                     S.                 280.            
282............  CHARLOTTE NC 282   CHARLOTTE NC 282.  SCF CHARLOTTE NC 
                  U.                                    280.            
283............  FAYETTEVILLE NC    FAYETTEVILLE NC    SCF FAYETTEVILLE 
                  283.               283.               NC 283.         
284............  FAYETTEVILLE NC    FAYETTEVILLE NC    SCF FAYETTEVILLE 
                  284.               284.               NC 283.         
285............  KINSTON NC 285...  KINSTON NC 285...  KINSTON NC 285.D 
286............  HICKORY NC 286...  HICKORY NC 286...  HICKORY NC 286.D 
287............  ASHEVILLE NC 287.  ASHEVILLE NC 287.  SCF ASHEVILLE NC 
                                                        287.            
288............  ASHEVILLE NC 288   ASHEVILLE NC 288.  SCF ASHEVILLE NC 
                  U.                                    287.            
289............  ASHEVILLE NC 289.  ASHEVILLE NC 289.  SCF ASHEVILLE NC 
                                                        287.            
290............  COLUMBIA SC 290..  COLUMBIA SC 290 S  SCF COLUMBIA SC  
                                                        290.            
291............  COLUMBIA SC 291..  COLUMBIA SC 290 S  SCF COLUMBIA SC  
                                                        290.            
292............  COLUMBIA SC 292 U  COLUMBIA SC 292..  SCF COLUMBIA SC  
                                                        290.            
293............  GREENVILLE SC 293  GREENVILLE SC 296  SCF GREENVILLE SC
                                     S.                 296.            
294............  CHARLESTON SC 294  CHARLESTON SC 294  CHARLESTON SC    
                                                        294.D           
295............  FLORENCE SC 295..  FLORENCE SC 295..  FLORENCE SC 295.D
296............  GREENVILLE SC 296  GREENVILLE SC 296  SCF GREENVILLE SC
                                     S.                 296.            
297............  CHARLOTTE NC 297.  CHARLOTTE NC 280   SCF CHARLOTTE NC 
                                     S.                 280.            
298............  AUGUSTA GA 298...  AUGUSTA GA 298...  SCF AUGUSTA GA   
                                                        308.            
299............  SAVANNAH GA 299..  SAVANNAH GA 299..  SCF SAVANNAH GA  
                                                        313.            
300............  NORTH METRO GA     NORTH METRO GA     SCF NORTH METRO  
                  300.               300 S.             GA 300.         
301............  NORTH METRO GA     NORTH METRO GA     SCF NORTH METRO  
                  301.               300 S.             GA 300.         
302............  NORTH METRO GA     NORTH METRO GA     SCF NORTH METRO  
                  302.               302.               GA 300.         
303............  ATLANTA GA 303 U.  ATLANTA GA 303 S.  SCF ATLANTA GA   
                                                        303.            
304............  SWAINSBORO GA 304  SWAINSBORO GA 304  SWAINSBORO GA    
                                                        304.D           
305............  ATHENS GA 305....  ATHENS GA 305....  SCF ATHENS GA    
                                                        306.            
306............  ATHENS GA 306....  ATHENS GA 306....  SCF ATHENS GA    
                                                        306.            
307............  CHATTANOOGA TN     CHATTANOOGA TN     SCF CHATTANOOGA  
                  307.               307.               TN 373.         
308............  AUGUSTA GA 308...  AUGUSTA GA 308...  SCF AUGUSTA GA   
                                                        308.            
309............  AUGUSTA GA 309 U.  AUGUSTA GA 309...  SCF AUGUSTA GA   
                                                        308.            
310............  MACON GA 310.....  MACON GA 310 S...  SCF MACON GA 310.
311............  ATLANTA GA 311 U.  ATLANTA GA 303 S.  SCF ATLANTA GA   
                                                        303.            
312............  MACON GA 312 U...  MACON GA 310 S...  SCF MACON GA 310.
313............  SAVANNAH GA 313..  SAVANNAH GA 313..  SCF SAVANNAH GA  
                                                        313.            
314............  SAVANNAH GA 314 U  SAVANNAH GA 314..  SCF SAVANNAH GA  
                                                        313.            
315............  WAYCROSS GA 315..  WAYCROSS GA 315..  WAYCROSS GA 315.D
316............  VALDOSTA GA 316..  VALDOSTA GA 316..  VALDOSTA GA 316.D
317............  ALBANY GA 317....  ALBANY GA 317....  ALBANY GA 317.D  
318............  COLUMBUS GA 318..  COLUMBUS GA 318 S  SCF COLUMBUS GA  
                                                        318.            
319............  COLUMBUS GA 319 U  COLUMBUS GA 318 S  SCF COLUMBUS GA  
                                                        318.            
320............  JACKSONVILLE FL    JACKSONVILLE FL    SCF JACKSONVILLE 
                  320.               320.               FL 320.         

[[Page 10147]]
                                                                        
321............  DAYTONA BEACH FL   DAYTONA BEACH FL   DAYTONA BEACH FL 
                  321.               321.               321.D           
322............  JACKSONVILLE FL    JACKSONVILLE FL    SCF JACKSONVILLE 
                  322 U.             322.               FL 320.         
323............  TALLAHASSEE FL     TALLAHASSEE FL     TALLAHASSEE FL   
                  323.               323.               323.D           
324............  PANAMA CITY FL     PANAMA CITY FL     PANAMA CITY FL   
                  324.               324.               324.D           
325............  PENSACOLA FL 325.  PENSACOLA FL 325.  PENSACOLA FL     
                                                        325.D           
326............  GAINESVILLE FL     GAINESVILLE FL     SCF GAINESVILLE  
                  326.               326.               FL 326.         
327............  MID-FLORIDA FL     MID-FLORIDA FL     MID-FLORIDA FL   
                  327.               327.               327.D           
328............  ORLANDO FL 328 U.  ORLANDO FL 328...  SCF ORLANDO FL   
                                                        328.            
329............  ORLANDO FL 329...  ORLANDO FL 329...  SCF ORLANDO FL   
                                                        328.            
330............  SOUTH FLORIDA FL   SOUTH FLORIDA FL   SOUTH FLORIDA FL 
                  330.               330.               330.D           
331............  MIAMI FL 331 U...  MIAMI FL 331.....  SCF MIAMI FL 331.
332............  MIAMI FL 332 U...  MIAMI FL 332.....  SCF MIAMI FL 331.
333............  FT LAUDERDALE FL   FT LAUDERDALE FL   FT LAUDERDALE FL 
                  333 U.             333.               333.D           
334............  WEST PALM BCH FL   WEST PALM BCH FL   SCF WEST PALM BCH
                  334.               334 S.             FL 334.         
335............  TAMPA FL 335.....  TAMPA FL 335 S...  SCF TAMPA FL 335.
336............  TAMPA FL 336 U...  TAMPA FL 336.....  SCF TAMPA FL 335.
337............  ST PETERSBURG FL   ST PETERSBURG FL   ST PETERSBURG FL 
                  337 U.             337.               337.D           
338............  LAKELAND FL 338..  LAKELAND FL 338..  LAKELAND FL 338.D
339............  FT MYERS FL 339..  FT MYERS FL 339..  FT MYERS FL 339.D
340............  APO/FPO AA 340...  APO/FPO AA 340...  .................
341 X                                                                   
342............  MANASOTA FL 342..  MANASOTA FL 342..  MANASOTA FL 342.D
343 X                                                                   
344............  GAINESVILLE FL     GAINESVILLE FL     SCF GAINESVILLE  
                  344.               344.               FL 326.         
345 X                                                                   
346............  TAMPA FL 346.....  TAMPA FL 335 S...  SCF TAMPA FL 335.
347............  ORLANDO FL 347...  ORLANDO FL 347...  SCF ORLANDO FL   
                                                        328.            
348 X                                                                   
349............  WEST PALM BCH FL   WEST PALM BCH FL   SCF WEST PALM BCH
                  349.               334 S.             FL 334.         
350............  BIRMINGHAM AL 350  BIRMINGHAM AL 350  SCF BIRMINGHAM AL
                                                        350.            
351............  BIRMINGHAM AL 351  BIRMINGHAM AL 351  SCF BIRMINGHAM AL
                                                        350.            
352............  BIRMINGHAM AL 352  BIRMINGHAM AL 352  SCF BIRMINGHAM AL
                  U.                                    350.            
353 X                                                                   
354............  TUSCALOOSA AL 354  TUSCALOOSA AL 354  TUSCALOOSA AL    
                                                        354.D           
355............  BIRMINGHAM AL 355  BIRMINGHAM AL 355  SCF BIRMINGHAM AL
                                                        350.            
356............  HUNTSVILLE AL 356  HUNTSVILLE AL 356  SCF HUNTSVILLE AL
                                                        357.            
357............  HUNTSVILLE AL 357  HUNTSVILLE AL 357  SCF HUNTSVILLE AL
                                                        357.            
358............  HUNTSVILLE AL 358  HUNTSVILLE AL 358  SCF HUNTSVILLE AL
                  U.                                    357.            
359............  BIRMINGHAM AL 359  BIRMINGHAM AL 359  SCF BIRMINGHAM AL
                                                        350.            
360............  MONTGOMERY AL 360  MONTGOMERY AL 360  SCF MONTGOMERY AL
                                                        360.            
361............  MONTGOMERY AL      MONTGOMERY AL 361  SCF MONTGOMERY AL
                  361U.                                 360.            
362............  ANNISTON AL 362..  ANNISTON AL 362..  ANNISTON AL 362.D
363............  DOTHAN AL 363....  DOTHAN AL 363....  DOTHAN AL 363.D  
364............  EVERGREEN AL 364.  EVERGREEN AL 364.  EVERGREEN 364.D  
365............  MOBILE AL 365....  MOBILE AL 365....  SCF MOBILE AL    
                                                        365.            
366............  MOBILE AL 366 U..  MOBLIE AL 366....  SCF MOBILE AL    
                                                        365.            
367............  MONTGOMERY AL 367  MONTGOMERY AL 367  SCF MONTGOMERY AL
                                                        360.            
368............  MONTGOMERY AL 368  MONTGOMERY AL 368  SCF MONTGOMERY AL
                                                        360.            
369............  MERIDIAN MS 369..  JACKSON MS 393 S.  SCF MERIDIAN MS  
                                    SCHEME B            393.            
370............  NASHVILLE TN 370.  NASHVILLE TN 370.  SCF NASHVILLE TN 
                                                        370.            
371............  NASHVILLE TN 371.  NASHVILLE TN 371.  SCF NASHVILLE TN 
                                                        370.            
372............  NASHVILLE TN 372   NASHVILLE TN 372.  SCF NASHVILLE TN 
                  U.                                    370.            
373............  CHATTANOOGA TN     CHATTANOOGA TN     SCF CHATTANOOGA  
                  373.               373.               TN 373.         
374............  CHATTANOOGA TN     CHATTANOOGA TN     SCF CHATTANOOGA  
                  374 U.             374.               TN 373.         
375............  MEMPHIS TN 375...  MEMPHIS TN 375...  SCF MEMPHIS TN   
                                                        380.            
376............  JOHNSON CITY TN    JOHNSON CITY TN    JOHNSON CITY TN  
                  376.               376.               376.D           
377............  KNOXVILLE TN 377.  KNOXVILLE TN 377   SCF KNOXVILLE TN 
                                     S.                 377.            
378............  KNOXVILLE TN 378.  KNOXVILLE TN 377   SCF KNOXVILLE TN 
                                     S.                 377.            
379............  KNOXVILLE TN 379   KNOXVILLE TN 377   SCF KNOXVILLE TN 
                  U.                 S.                 377.            
380............  MEMPHIS TN 380...  MEMPHIS TN 380...  SCF MEMPHIS TN   
                                                        380.            
381............  MEMPHIS TN 381 U.  MEMPHIS TN 381...  SCF MEMPHIS TN   
                                                        380.            
382............  MCKENZIE TN 382..  MCKENZIE TN 382..  MCKENZIE TN 382.D
383............  JACKSON TN 383...  JACKSON TN 383...  JACKSON TN 383.D 
384............  COLUMBIA TN 384..  COLUMBIA TN 384..  COLUMBIA TN 384.D
385............  COOKEVILLE TN 385  COOKEVILLE TN 385  COOKEVILLE TN    
                                                        385.D           
386............  MEMPHIS TN 386...  MEMPHIS TN 386...  SCF MEMPHIS TN   
                                                        380.            
387............  GREENVILLE MS 387  GREENVILE MS.....  GREENVILLE MS    
                                                        387.D           
388............  TUPELO MS 388....  TUPELO MS 388....  TUBELO MS 388.D  
389............  GRENADA MS 389...  GRENADA MS 389...  GRENADA MS 389.D 
390............  JACKSON MS 390...  JACKSON MS 390 S.  SCF JACKSON MS   
                                    SCHEME A            390.            

[[Page 10148]]
                                                                        
391............  JACKSON MS 391...  JACKSON MS 390 S.  SCF JACKSON MS   
                                    SCHEME A            390.            
392............  JACKSON MS 392 U.  JACKSON MS 392...  SCF JACKSON MS   
                                                        390.            
393............  MERIDIAN MS 393..  JACKSON MS 393 S.  SCF MERIDIAN MS  
                                    SCHEME B            393.            
394............  HATTIESBURG MS     HATTIESBURG MS     HATTIESBURG MS   
                  394.               394.               394.D           
395............  GULFPORT MS 395..  GULFPORT MS 395..  GULPORT MS 395.D 
396............  MCCOMB MS 396....  MCCOMB MS 396....  MCCOMB MS 396.D  
397............  COLUMBUS MS 397..  COLUMBUS MS 397..  COLUMBUS MS 397.D
398X                                                                    
399............  ATLANTA GA 399...  ATLANTA GA 303 S.  SCF ATLANTA GA   
                                                        303.            
400............  LOUISVILLE KY 400  LOUISVILLE KY 400  SCF LOUISVILLE KY
                                     S.                 400.            
401............  LOUISVILLE KY 401  LOUISVILLE KY 400  SCF LOUISVILLE KY
                                     S.                 400.            
402............  LOUISVILLE KY 402  LOUISVILLE KY 402  SCF LOUISVILLE KY
                  U.                                    400.            
403............  LEXINGTON KY 403.  LEXINGTON KY 403.  SCF LEXINGTON KY 
                                                        403.            
404............  LEXINGTON KY 404.  LEXINGTON KY 404.  SCF LEXINGTON KY 
                                                        403.            
405............  LEXINGTON KY 405   LEXINGTON KY 405.  SCF LEXINGTON KY 
                  U.                                    403.            
406............  FRANKFORT KY 406   FRANKFORT KY 406.  SCF LEXINGTON KY 
                  U.                                    403.            
407............  LONDON KY 407....  LONDON KY 407....  SCF LONDON KY    
                                                        407.            
408............  LONDON KY 408....  LONDON KY 408....  SCF LONDON KY    
                                                        407.            
409............  LONDON KY 409....  LONDON KY 409....  SCF LONDON KY    
                                                        407.            
410............  CONCINNATI OH 410  CINCINNATI OH 410  SCF CONCINNATI OH
                                     S.                 450.            
                                    SCHEME A                            
411............  ASHLAND KY 411...  ASHLAND KY 411...  SCF ASHLAND KY   
                                                        411.            
412............  ASHLAND KY 412...  ASHLAND KY 412...  SCF ASHLAND KY   
                                                        411.            
413............  CAMPTON KY 413...  CAMPTON KY 413...  SCF CAMPTON KY   
                                                        413.            
414............  CAMPTON KY 414...  CAMPTON KY 414...  SCF CAMPTON KY   
                                                        413.            
415............  PIKEVILLE KY 415.  PIKEVILLE KY 415.  SCF PIKEVILLE KY 
                                                        415.            
416............  PIKEVILLE KY 416.  PIKEVILLE KY 416.  SCF PIKEVILLE KY 
                                                        415.            
417............  HAZARD KY 417....  HAZARD KY 417....  SCF HAZARD KY    
                                                        417.            
418............  HAZARD KY 418....  HAZARD KY 418....  SCF HAZARD KY    
                                                        417.            
419 X                                                                   
420............  PADUCAH KY 420...  PADUCAH KY 420...  PADUCAH KY 420.D 
421............  BOWLING GREEN KY   BOWLING GREEN KY   SCF BOWLING GREEN
                  421.               421.               KY 421.         
422............  BOWLING GREEN KY   BOWLING GREEN KY   SCF BOWLING GREEN
                  422.               422.               KY 421.         
423............  OWENSBORO KY 423.  OWENSBORO KY 423.  OWENSBORO KY     
                                                        423.D           
424............  EVANSVILLE IN 424  EVANSVILLE IN 424  SCF EVANSVILLE IN
                                                        476.            
425............  SOMERSET KY 425..  SOMERSET KY 425..  SCF SOMERSET KY  
                                                        425.            
426............  SOMERSET KY 426..  SOMERSET KY 426..  SCF SOMERSET KY  
                                                        426.            
427............  ELIZABETHTOWN KY   ELIZABETHTOWN KY   ELIZABETHTOWN KY 
                  427.               427.               427.D           
428 X                                                                   
429 X                                                                   
430............  COLUMBUS OH 430..  COLUMBUS OH 430 S  SCF COLUMBUS OH  
                                    SCHEME A            430.            
431............  COLUMBUS OH 431..  COLUMBUS OH 430 S  SCF COLUMBUS OH  
                                    SCHEME A            430.            
432............  COLUMBUS OH 432 U  COLUMBUS OH 432..  SCF COLUMBUS OH  
                                                        430.            
433............  COLUMBUS OH 433..  COLUMBUS OH 430 S  SCF COLUMBUS OH  
                                    SCHEME A            430.            
434............  TOLEDO OH 434....  TOLEDO OH 434 S..  SCF TOLEDO OH    
                                                        434.            
435............  TOLEDO OH 435....  TOLEDO OH 434 S..  SCF TOLEDO OH    
                                                        434.            
436............  TOLEDO OH 436 U..  TOLEDO OH 434 S..  SCF TOLEDO OH    
                                                        434.            
437............  ZANESVILLE OH 437  COLUMBUS OH 437 S  SCF ZANESVILLE OH
                                    SCHEME B            437.            
438............  ZANESVILLE OH 438  COLUMBUS OH 437 S  SCF ZANESVILLE OH
                                    SCHEME B            437.            
439............  STEUBENVILLE OH    STEUBENVILLE OH    STEUBENVILLE OH  
                  439.               439.               439.D           
440............  CLEVELAND OH 440.  CLEVELAND OH 440.  SCF CLEVELAND OH 
                                                        440.            
441............  CLEVELAND OH 441   CLEVELAND OH 441.  SCF CLEVELAND OH 
                  U.                                    440.            
442............  AKRON OH 442.....  AKRON OH 442 S...  SCF AKRON OH 442.
443............  AKRON OH 443 U...  AKRON OH 442 S...  SCF AKRON OH 442.
444............  YOUNGSTOWN OH 444  YOUNGSTOWN OH 444  SCF YOUNGSTOWN OH
                                     S.                 444.            
445............  YOUNGSTOWN OH 445  YOUNGSTOWN OH 444  SCF YOUNGSTOWN OH
                  U.                 S.                 444.            
446............  CANTON OH 446....  CANTON OH 446 S..  SCF CANTON OH    
                                                        446.            
447............  CANTON OH 447 U..  CANTON OH 446 S..  SCF CANTON OH    
                                                        446.            
448............  MANSFIELD OH 448.  MANSFIELD OH 448.  SCF MANSFIELD OH 
                                                        448.            
449............  MANSFIELD OH 449   MANSFIELD OH 449.  SCF MANSFIELD OH 
                  U.                                    448.            
450............  CINCINNATI OH 450  CINCINNATI OH 450  SCF CINCINNATI OH
                                     S.                 450.            
                                    SCHEME B                            
451............  CINCINNATI OH 451  CINCINNATI OH 450  SCF CINCINNATI OH
                                     S.                 450.            
                                    SCHEME B                            
452............  CINCINNATI OH 452  CINCINNATI OH 452  SCF CINCINNATI OH
                  U.                                    450.            

[[Page 10149]]
                                                                        
453............  DAYTON OH 453....  DAYTON OH 453....  SCF DAYTON OH    
                                                        453.            
454............  DAYTON OH 454 U..  DAYTON OH 454....  SCF DAYTON OH    
                                                        453.            
455............  SPRINGFIELD OH     SPRINGFIELD OH     SCF DAYTON OH    
                  455 U.             455.               453.            
456............  CHILLICOTHE OH     CILLICOTHE OH 456  CHILLICOTHE OH   
                  456.                                  456.D           
457............  ATHENS OH 457....  ATHENS OH 457....  ATHENS OH 457.D  
458............  LIMA OH 458......  LIMA OH 458......  LIMA OH 458.D    
459............  CINCINNATI OH 459  CINCINNATI OH 459  SCF CINCINNATI OH
                                                        450.            
460............  INDIANAPOLIS IN    INDIANAPOLIS IN    SCF INDIANAPOLIS 
                  460.               460.               IN 460.         
461............  INDIANAPOLIS IN    INDIANAPOLIS IN    SCF INDIANAPOLIS 
                  461.               461.               IN 460.         
462............  INDIANAPOLIS IN    INDIANAPOLIS IN    SCF INDIANAPOLIS 
                  462 U.             462.               IN 460.         
463............  GARY IN 463......  GARY IN 463 S....  SCF GARY IN 463. 
464............  GARY IN 464 U....  GARY IN 463 S....  SCF GARY IN 463. 
465............  SOUTH BEND IN 465  SOUTH BEND IN 465  SCF SOUTH BEND IN
                                     S.                 465.            
466............  SOUTH BEND IN 466  SOUTH BEND IN 465  SCF SOUTH BEND IN
                  U.                 S.                 465.            
467............  FORT WAYNE IN 467  FORT WAYNE IN 467  SCF FORT WAYNE IN
                                                        467.            
468............  FORT WAYNE IN 468  FORT WAYNE IN 468  SCF FORT WAYNE IN
                  U.                                    467.            
469............  KOKOMO IN 469....  KOKOMO 469.......  KOKOMO 469.D     
470............  CINCINNATI OH 470  CINCINNATI OH 410  SCF CINCINNATI OH
                                     S.                 450.            
                                    SCHEME A                            
471............  LOUISVILLE KY 471  LOUISVILLE KY 400  SCF LOUISVILLE KY
                                     S.                 400.            
472............  COLUMBUS IN 472..  COLUMBUS IN 472..  COLUMBUS IN 472.D
473............  MUNCIE IN 473....  MUNCIE IN 473....  MUNCIE IN 473.D  
474............  BLOOMINGTON IN     BLOOMINGTON IN     BLOOMINGTON IN   
                  474.               474.               474.D           
475............  WASHINGTON IN 475  WASHINGTON IN 475  WASHINGTON IN    
                                                        475. D          
476............  EVANSVILLE IN 476  EVANSVILLE IN 476  SCF EVANSVILLE IN
                                                        476.            
477............  EVANSVILLE IN 477  EVANSVILLE IN 477  SCF EVANSVILLE IN
                  U.                                    476.            
478............  TERRE HAUTE IN     TERRE HAUTE IN     TERRE HAUTE IN   
                  478.               478.               478.D           
479............  LAFAYETTE IN 479.  LAFAYETTE IN 479.  LAFAYETTE IN     
                                                        479.D           
480............  ROYAL OAK MI 480.  ROYAL OAK MI 480.  SCF ROYAL OAK MI 
                                                        480.            
481............  DETROIT MI 481...  DETROIT MI 481...  SCF DETROIT MI   
                                                        481.            
482............  DETROIT MI 482 U.  DETROIT MI 482...  SCF DETROIT MI   
                                                        481.            
483............  ROYAL OAK MI 483.  ROYAL OAK MI 483.  SCF ROYAL OAK MI 
                                                        480.            
484............  FLINT MI 484.....  FLINT MI 484 S...  SCF FLINT MI 484.
485............  FLINT MI 485 U...  FLINT MI 484 S...  SCF FLINT MI 484.
486............  SAGINAW MI 486...  SAGINAW MI 486 S.  SCF SAGINAW MI   
                                                        486.            
487............  SAGINAW MI 487...  SAGINAW MI 486 S.  SCF SAGINAW MI   
                                                        486.            
488............  LANSING MI 488...  LANSING MI 488...  SCF LANSING MI   
                                                        488.            
489............  LANSING MI 489 U.  LANSING MI 489...  SCF LANSING MI   
                                                        488.            
490............  KALAMAZOO MI 490.  KALAMAZOO MI 490   SCF KALAMAZOO MI 
                                     S.                 490.            
491............  KALAMAZOO MI 491.  KALAMAZOO MI 490   SCF KALAMAZOO MI 
                                     S.                 490.            
492............  JACKSON MI 492...  JACKSON MI 492...  JACKSON MI 492.D 
493............  GRAND RAPIDS MI    GRAND RAPIDS MI    SCF GRAND RAPIDS 
                  493.               493.               MI 493.         
494............  GRAND RAPIDS MI    GRAND RAPIDS MI    SCF GRAND RAPIDS 
                  494.               494.               MI 493.         
495............  GRAND RAPIDS MI    GRAND RAPIDS MI    SCF GRAND RAPIDS 
                  495 U.             495.               MI 493.         
496............  TRAVERSE CITY MI   TRAVERSE CITY MI   TRAVERSE CITY MI 
                  496.               496.               496 D           
497............  GAYLORD MI 497...  GAYLORD MI 497...  GAYLORD MI 497.D 
498............  IRON MOUNTAIN MI   IRON MOUNTAIN MI   SCF IRON MOUNTAIN
                  498.               498 S.             MI 498.         
499............  IRON MOUNTAIN MI   IRON MOUNTAIN MI   SCF IRON MOUNTAIN
                  499 S.             498 S.             MI 498.         
500............  DES MOINES IA 500  DES MOINES IA 500  SCF DES MOINES IA
                                     S.                 500.            
                                    SCHEME A                            
501............  DES MOINES IA 501  DES MOINES IA 500  SCF DES MOINES IA
                                     S.                 500.            
                                    SCHEME A                            
502............  DES MOINES IA 502  DES MOINES IA 500  SCF DES MOINES IA
                                     S.                 500.            
                                    SCHEME A                            
503............  DES MOINES IA 503  DES MOINES IA 503  SCF DES MOINES IA
                  U.                 S.                 500.            
                                    SCHEME B                            
504............  MASON CITY IA 504  MASON CITY IA 504  MASON CITY IA    
                                                        504.D           
505............  FORT DODGE IA 505  FORT DODGE IA 505  FORT DODGE IA    
                                                        505.D           
506............  WATERLOO IA 506..  WATERLOO IA 506..  SCF WATERLOO IA  
                                                        506.            
507............  WATERLOO IA 507 U  WATERLOO IA 507..  SCF WATERLOO IA  
                                                        506.            
508............  CRESTON IA 508...  CRESTON IA 508...  CRESTON IA 508.D 
509............  DES MOINES IA 509  DES MOINES IA 503  SCF DES MOINES IA
                                     S.                 500.            
                                    SCHEME B                            
510............  SIOUX CITY IA 510  SIOUX CITY IA 510  SCF SIOUX CITY IA
                                                        510.            
511............  SIOUX CITY IA      SIOUX CITY IA 511  SCF SIOUX CITY IA
                  511U.                                 510.            
512............  SHELDON IA 512...  SHELDON IA 512...  SHELDON IA 512.D 
513............  SPENCER IA 513...  SPENCER IA 513...  SPENCER IA 513.D 
514............  CARROLL IA 514...  CARROLL IA 514...  CARROLL IA 514.D 
515............  OMAHA NE 515.....  OMAHA NE 680 S...  SCF OMAHA NE 680.
516............  OMAHA NE 516.....  OMAHA NE 680 S...  SCF OMAHA NE 680.
517X                                                                    
518X                                                                    

[[Page 10150]]
                                                                        
519X                                                                    
520............  DUBUQUE IA 520...  DUBUQUE IA 520...  DUBUQUE IA 520.D 
521............  DECORAH IA 521...  DECORAH IA 521...  DECORAH IA 521.D 
522............  CEDAR RAPIDS IA    CEDAR RAPIDS IA    SCF CEDAR RAPIDS 
                  522.               522 S.             IA 522.         
523............  CEDAR RAPIDS IA    CEDAR RAPIDS IA    SCF CEDAR RAPIDS 
                  523.               522 S.             IA 522.         
524............  CEDAR RAPIDS IA    CEDAR RAPIDS IA    SCF CEDAR RAPIDS 
                  524 U.             524.               IA 522.         
525............  OTTUMWA IA 525...  OTTUMWA IA 525...  OTTUMWA IA 525.D 
526............  BURLINGTON IA 526  BURLINGTON IA 526  BURLINGTON IA    
                                                        526.D           
527............  ROCK ISLAND IL     ROCK ISLAND IL     SCF ROCK ISLAND  
                  527.               612 S.             IL 612.         
528............  DAVENPORT IA 528   ROCK ISLAND IL     SCF ROCK ISLAND  
                  U.                 612 S.             IL 612.         
529 X                                                                   
530............  MILWAUKEE WI 530.  MILWAUKEE WI 530.  SCF MILWAUKEE WI 
                                                        530.            
531............  MILWAUKEE WI 531.  MILWAUKEE WI 531.  SCF MILWAUKEE WI 
                                                        530.            
532............  MILWAUKEE WI 532   MILWAUKEE WI 532.  SCF MILWAUKEE WI 
                  U.                                    530.            
533 X                                                                   
534............  RACINE WI 534 U..  RACINE WI 534....  SCF MILWAUKEE WI 
                                                        530.            
535............  MADISON WI 535...  MADISON WI 535 S.  SCF MADISON WI   
                                                        535.            
536X                                                                    
537............  MADISON WI 537 U.  MADISON WI 537...  SCF MADISON WI   
                                                        535.            
538............  MADISON WI 538...  MADISON WI 535 S.  SCF MADISON WI   
                                                        535.            
539............  PORTAGE WI 539...  PORTAGE WI 539...  PORTAGE WI 539.D 
540............  ST PAUL MIN 540..  ST PAUL MN 550 S.  SCF ST PAUL MN   
                                                        550.            
541............  GREEN BAY WI 541.  GREEN BAY WI 541   SCF GREEN BAY WI 
                                     S.                 541.            
542............  GREEN BAY WI 542.  GREEN BAY WI 541   SCF GREEN BAY WI 
                                     S.                 541.            
543............  GREEN BAY WI 543   GREEN BAY WI 543.  SCF GREEN BAY WI 
                  U.                                    541.            
544............  WAUSAU WI 544....  WAUSAU WI 544....  WAUSAU WI 544.D  
545............  RHINELANDER WI     RHINELANDER WI     RHINELANDER WI   
                  545.               545.               545.D           
546............  LA CROSSE WI 546.  LA CROSSE WI 546.  LA CROSSE WI     
                                                        546.D           
547............  EAU CLAIRE WI 547  EAU CLAIRE WI 547  EAU CLAIRE WI    
                                                        547.D           
548............  SPOONER WI 548...  SPOONER WI 548...  SPOONER WI 548.D 
549............  OSHKOSH WI 549...  OSHKOSH WI 549...  OSHKOSH WI 549.D 
550............  ST PAUL MN 550...  ST PAUL MN 550 S.  SCF ST PAUL MN   
                                                        550.            
551............  ST PAUL MN 551 U.  ST PAUL MN 551...  SCF ST PAUL MN   
                                                        550.            
552 X                                                                   
553............  MINNEAPOLIS MN     MINNEAPOLIS MN     SCF MINNEAPOLIS  
                  553.               553.               MN 553.         
554............  MINNEAPOLIS MN     MINNEAPOLIS MN     SCF MINNEAPOLIS  
                  554U.              554.               MN 553.         
555............  MINNEAPOLIS MN     MINNEAPOLIS MN     SCF MINNEAPOLIS  
                  555.               555.               MN 553.         
556............  DULUTH MN 556....  DULUTH MN 556....  SCF DULUTH MN    
                                                        556.            
557............  DULUTH MN 557....  DULUTH MN 557....  SCF DULUTH MN    
                                                        556.            
558............  DULUTH MN 558 U..  DULUTH MN 558....  SCF DULUTH MN    
                                                        556.            
559............  ROCHESTER MN 559.  ROCHESTER MN 559.  ROCHESTER MN     
                                                        559.D           
560............  MANKATO MN 560...  MANKATO MN 560...  MANKATO MN 560.D 
561............  WINDOM MN 561....  WINDOM MN 561....  WINDOM MN 561.D  
562............  WILLMAR MN 562...  WILLMAR MN 562...  WILLMAR MN 562.D 
563............  ST CLOUD MN 563..  ST CLOUD MN 563..  ST CLOUD MN 563.D
564............  BRAINERD MN 564..  BRAINERD MN 564..  BRAINERD MN 564.D
565............  DETROIT LAKES MN   DETROIT LAKES MN   DETROIT LAKES MN 
                  565.               565.               565.D           
566............  BEMIDJI MN 566...  BEMIDJI MN 566...  BEMIDJI MN 566.D 
567............  THIEF RIVER FALLS  THIEF RIVER FALLS  THIEF RIVER FALLS
                  MN 567.            MN 567.            MN 567.D        
568 X                                                                   
569 X                                                                   
570............  SIOUX FALLS SD     SIOUX FALLS SD     SCF SIOUX FALLS  
                  570.               570.               SD 570.         
571............  SIOUX FALLS SD     SIOUX FALLS SD     SCF SIOUX FALLS  
                  571 U.             571.               SD 570.         
572............  DAKOTA CENTRAL SD  DAKOTA CENTRAL SD  SCF DAKOTA       
                  572.               572.               CENTRAL SD 572. 
573............  DAKOTA CENTRAL SD  DAKOTA CENTRAL SD  SCF DAKOTA       
                  573.               573.               CENTRAL SD 572. 
574............  ABERDEEN SD 574..  ABERDEEN SD 574..  ABERDEEN SD 574.D
575............  PIERRE SD 575....  PIERRE SD 575....  PIERRE SD 575.D  
576............  MOBRIDGE SD 576..  MOBRIDGE SD 576..  MOBRIDGE SD 576.D
577............  RAPID CITY SD 577  RAPID CITY SD 577  RAPID CITY SD    
                                                        577.D           
578 X                                                                   
579 X                                                                   
580............  FARGO ND 580.....  FARGO ND 580.....  SCF FARGO ND 580.
581............  FARGO ND 581.....  FARGO ND 581.....  SCF FARGO ND 580.
582............  GRAND FORKS ND     GRAND FORKS ND     GRAND FORKS ND   
                  582.               582.               582.D           
583............  DEVILS LAKE ND     DEVILS LAKE ND     DEVILS LAKE ND   
                  583.               583.               583.D           
584............  JAMESTOWN ND 584.  JAMESTOWN ND 584.  JAMESTOWN ND     
                                                        584.D           
585............  BISMARCK ND 585..  BISMARCK ND 585..  BISMARCK ND 585.D
586............  DICKINSON ND 586.  DICKINSON ND 586.  DICKINSON ND     
                                                        586.D           
587............  MINOT ND 587.....  MINOT ND 587.....  MINOT ND 587.D   
588............  WILLISTON ND 588.  WILLISTON ND 588.  WILLISTON ND     
                                                        588.D           
589 X                                                                   
590............  BILLINGS MT 590..  BILLINGS MT 590 S  SCF BILLINGS MT  
                                                        590.            

[[Page 10151]]
                                                                        
591............  BILLINGS MT 591 U  BILLINGS MT 590 S  SCF BILLINGS MT  
                                                        590.            
592............  WOLF POINT MT 592  BILLINGS MT 590 S  WOLF POINT MT    
                                                        592.D           
593............  MILES CITY MT 593  BILLINGS MT 590 S  MILES CITY MT    
                                                        593.D           
594............  GREAT FALLS MT     BILLINGS MT 590 S  GREAT FALLS MT   
                  594.                                  594.D           
595............  HAVRE MT 595.....  BILLINGS MT 590 S  HAVRE MT 595.D   
596............  HELENA MT 596....  BILLINGS MT 590 S  HELENA MT 596.D  
597............  BUTTE MT 597.....  BILLINGS MT 590 S  BUTTE MT 597.D   
598............  MISSOULA MT 598..  BILLINGS MT 590 S  MISSOULA MT 598.D
599............  KALISPELL MT 599.  BILLINGS MT 590 S  KALISPELL MT     
                                                        599.D           
600............  PALATINE IL 600..  PALATINE IL 600 S  SCF PALATINE IL  
                                                        600.            
601............  CAROL STREAM IL    CAROL STREAM IL    SCF CAROL STREAM 
                  601.               601 S.             IL 601.         
602............  EVANSTON IL 602 U  PALATINE IL 600 S  SCF PALATINE IL  
                                                        600.            
603............  OAK PARK IL 603 U  CAROL STREAM IL    SCF CAROL STREAM 
                                     601 S.             IL 601.         
604............  SOUTH SUBURBAN IL  SOUTH SUBURBAN IL  SOUTH SUBURBAN IL
                  604.               604.               604.D           
605............  FOX VALLEY IL 605  FOX VALLEY IL 605  FOX VALLEY IL    
                                                        605.D           
606............  CHICAGO IL 606 U.  CHICAGO IL 606...  SCF CHICAGO IL   
                                                        606.            
607............  CHICAGO IL 607...  CHICAGO IL 607...  SCF CHICAGO IL   
                                                        606.            
608............  CHICAGO IL 608...  CHICAGO IL 608...  SCF CHICAGO IL   
                                                        606.            
609............  KANKAKEE IL 609..  KANKAKEE IL 609..  KANKAKEE IL 609.D
610............  ROCKFORD IL 610..  ROCKFORD IL 610 S  SCF ROCKFORD IL  
                                                        610.            
611............  ROCKFORD IL 611 U  ROCKFORD IL 610 S  SCF ROCKFORD IL  
                                                        610.            
612............  ROCK ISLAND IL     ROCK ISLAND IL     SCF ROCK ISLAND  
                  612.               612 S.             IL 612.         
613............  LA SALLE IL 613..  LA SALLE IL 613..  LA SALLE IL 613.D
614............  GALESBURG IL 614.  GALESBURG IL 614.  GALESBURG IL     
                                                        614.D           
615............  PEORIA IL 615....  PEORIA IL 615 S..  SCF PEORIA IL    
                                                        615.            
616............  PEORIA IL 616 U..  PEORIA IL 615 S..  SCF PEORIA IL    
                                                        615.            
617............  BLOOMINGTON IL     BLOOMINGTON IL     BLOOMINGTON IL   
                  617.               617.               617.D           
618............  CHAMPAIGN IL 618.  CHAMPAIGN IL 618   SCF CHAMPAIGN IL 
                                     S.                 618.            
619............  CHAMPAIGN IL 619.  CHAMPAIGN IL 618   CHAMPAIGN IL 618.
                                     S.                                 
620............  ST LOUIS MO 620..  ST LOUIS MO 630 S  SCF ST LOUIS MO  
                                                        630.            
621 X                                                                   
622............  ST LOUIS MO 622..  ST LOUIS MO 630 S  SCF ST LOUIS MO  
                                                        630.            
623............  QUINCY IL 623....  QUINCY IL 623....  QUINCY IL 623.   
624............  EFFINGHAM IL 624.  EFFINGHAM IL 624.  EFFINGHAM IL     
                                                        624.D           
625............  SPRINGFIELD IL     SPRINGFIELD IL     SCF SPRINGFIELD  
                  625.               625.               IL 625.         
626............  SPRINGFIELD IL     SPRINGFIELD IL     SCF SPRINGFIELD  
                  626.               626.               IL 625.         
627............  SPRINGFIELD IL     SPRINGFIELD IL     SCF SPRINGFIELD  
                  627 U.             627.               IL 625.         
628............  CENTRALIA IL 628.  CENTRALIA IL 628.  CENTRALIA IL     
                                                        628.D           
629............  CARBONDALE IL 629  CARBONDALE IL 629  CARBONDALE IL    
                                                        629.D           
630............  ST LOUIS MO 630..  ST LOUIS MO 630 S  SCF ST LOUIS MO  
                                                        630.            
631............  ST LOUIS MO 631 U  ST LOUIS MO 631..  SCF ST LOUIS MO  
                                                        630.            
632 X                                                                   
633............  ST LOUIS MO 633..  ST LOUIS MO 630 S  SCF ST LOUIS MO  
                                                        630.            
634............  QUINCY IL 634....  QUINCY IL 634....  SCF QUINCY IL    
                                                        623.            
635............  QUINCY IL 635....  QUINCY IL 635....  SCF QUINCY IL    
                                                        623.            
636............  CAPE GIRARDEAU MO  CAPE GIRARDEAU MO  SCF CAPE         
                  636.               636.               GIRARDEAU MO    
                                                        637.            
637............  CAPE GIRARDEAU MO  CAPE GIRARDEAU MO  SCF CAPE         
                  637.               637.               GIRARDEAU MO    
                                                        637.            
638............  CAPE GIRARDEAU MO  CAPE GIRARDEAU MO  SCF CAPE         
                  638.               638.               GIRARDEAU MO    
                                                        637.            
639............  CAPE GIRARDEAU MO  CAPE GIRARDEAU MO  SCF CAPE         
                  639.               639.               GIRARDEAU MO    
                                                        637.            
640............  KANSAS CITY MO     KANSAS CITY MO     SCF KANSAS CITY  
                  640.               640.               MO 640.         
641............  KANSAS CITY MO     KANSAS CITY MO     SCF KANSAS CITY  
                  641 U.             641.               MO 640.         
642 X                                                                   
643 X                                                                   
644............  ST JOSEPH MO 644.  ST JOSEPH MO 644.  SCF ST JOSEPH MO 
                                                        644.            
645............  ST JOSEPH MO 645   ST JOSEPH MO 645.  SCF ST JOSEPH MO 
                  U.                                    644.            
646............  CHILLICOTHE MO     CHILLICOTHE MO     CHILLICOTHE MO   
                  646.               646.               646.D           
647............  HARRISONVILLE MO   HARRISONVILLE MO   HARRISONVILLE MO 
                  647.               647.               647.D           
648............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  648.               648.               MO 656.         
649............  KANSAS CITY MO     KANSAS CITY MO     SCF KANSAS CITY  
                  649.               649.               MO 640.         
650............  MID-MISSOURI MO    MID-MISSOURI MO    SCF MID-MISSOURI 
                  650.               650.               MO 650.         
651............  JEFFERSON CITY MO  JEFFERSON CITY MO  SCF MID-MISSOURI 
                  651 U.             651.               MO 650.         
652............  MID-MISSOURI MO    MID-MISSOURI MO    SCF MID-MISSOURI 
                  652.               652.               MO 650.         
653............  MID-MISSOURI MO    MID-MISSOURI MO    SCF MID-MISSOURI 
                  653.               653.               MO 650.         
654............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  654.               654 S.             MO 656.         
                                    SCHEME A                            
655............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  655.               654 S.             MO 656.         
                                    SCHEME A                            
656............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  656.               656 S.             MO 656.         
                                    SCHEME B                            
657............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  657.               656 S.             MO 656.         
                                    SCHEME B                            
658............  SPRINGFIELD MO     SPRINGFIELD MO     SCF SPRINGFIELD  
                  658 U.             658.               MO 656.         

[[Page 10152]]
                                                                        
659 X                                                                   
660............  KANSAS CITY KS     KANSAS CITY KS     SCF KANSAS CITY  
                  660.               660.               KS 660.         
661............  KANSAS CITY KS     KANSAS CITY KS     SCF KANSAS CITY  
                  661 U.             661.               KS 660.         
662............  SHAWNEE MISSION    SHAWNEE MISSION    SCF SHAWNEE      
                  KS 662 U.          KS 662.            MISSION KS 662. 
633 X                                                                   
664............  TOPEKA KS 664....  TOPEKA KS 664....  SCF TOPEKA KS    
                                                        664.`           
665............  TOPEKA KS 665 U..  TOPEKA KS 665....  SCF TOPEKA KS    
                                                        664.            
666............  TOPEKA KS 666....  TOPEKA KS 666....  SCF TOPEKA KS    
                                                        664.            
667............  FT SCOTT KS 667..  FT SCOTT KS 667..  FT SCOTT KS 667.D
668............  TOPEKA KS 668....  TOPEKA KS 668....  SCF TOPEKA KS    
                                                        664.            
669............  SALINA KS 669....  SALINA KS 669....  SCF SALINA KS    
                                                        674.            
670............  WICHITA KS 670...  WICHITA KS 670 S.  SCF WICHITA KS   
                                                        670.            
671............  WICHITA KS 671...  WICHITA KS 670 S.  SCF WICHITA KS   
                                                        670.            
672............  WICHITA KS 672 U.  WICHITA KS 672...  SCF WICHITA KS   
                                                        670.            
673............  INDEPENDENCE KS    INDEPENDENCE KS    INDEPENDENCE KS  
                  673.               673.               673.D           
674............  SALINA KS 674....  SALINA KS 674....  SCF SALINA KS    
                                                        674.            
675............  HUTCHINSON KS 675  HUTCHINSON KS 675  HUTCHINSON KS    
                                                        675.D           
676............  HAYS KS 676......  HAYS KS 676......  HAYS KS 676.D    
677............  COLBY KS 677.....  COLBY KS 677.....  COLBY KS 677.D   
678............  DODGE CITY KS 678  DODGE CITY KS 678  DODGE CITY KS    
                                                        678.D           
679............  LIBERAL KS 679...  LIBERAL KS 679...  SCF LIBERAL KS   
                                                        679.            
680............  OMAHA NE 680.....  OMAHA NE 680 S...  SCF OMAHA NE 680.
681............  OMAHA NE 681 U...  OMAHA NE 681.....  SCF OMAHA NE 680.
682 X                                                                   
683............  LINCOLN NE 683...  LINCOLN NE 683...  SCF LINCOLN NE   
                                                        683.            
684............  LINCOLN NE 684...  LINCOLN NE 684...  SCF LINCOLN NE   
                                                        683.            
685............  LINCOLN 685 U....  LINCOLN 685......  SCF LINCOLN 683. 
686............  NORFOLK NE 686...  NORFOLK NE 686...  SCF NORFOLK NE   
                                                        687.            
687............  NORFOLK NE 687...  NORFOLK NE 687...  SCF NORFOLK NE   
                                                        687.            
688............  GRAND ISLAND 688.  GRAND ISLAND 688.  SCF GRAND ISLAND 
                                                        688.            
689............  GRAND ISLAND 689.  GRAND ISLAND 689.  SCF GRAND ISLAND 
                                                        688.            
690............  MCCOOK NE 690....  MCCOOK NE 690....  MCCOOK NE 690.D  
691............  NORTH PLATTE NE    NORTH PLATTE NE    NORTH PLATTE NE  
                  691.               691.               691.D           
692............  VALENTINE NE 692.  VALENTINE NE 692.  VALENTINE NE     
                                                        692.D           
693............  ALLIANCE NE 693..  ALLIANCE NE 693..  ALLIANCE NE 693.D
694 X                                                                   
695 X                                                                   
696 X                                                                   
697 X                                                                   
698 X                                                                   
699 X                                                                   
700............  NEW ORLEANS LA     NEW ORLEANS LA     SCF NEW ORLEANS  
                  700.               700.               LA 700.         
701............  NEW ORLEANS LA     NEW ORLEANS LA     SCF NEW ORLEANS  
                  701 U.             701.               LA 700.         
701                                                                     
702 X                                                                   
703 X..........  HOUMA LA 703.....  HOUMA LA 703.....  HOUMA LA 703.D   
704............  MANDEVILLE LA 704  MANDEVILLE LA 704  MANDEVILLE LA    
                                                        704.D           
705............  LAFAYETTE LA 705.  LAFAYETTE LA 705.  LAFAYETTE LA     
                                                        705.D           
706............  LAKE CHARLES LA    LAKE CHARLES LA    LAKE CHARLES LA  
                  706.               706.               706.D           
707............  BATON ROUGE LA     BATON ROUGE LA     SCF BATON ROUGE  
                  707.               707.               LA 707.         
708............  BATON ROUGE LA     BATON ROUGE LA     SCF BATON ROUGE  
                  708 U.             708.               LA 707.         
709 X                                                                   
710............  SHREVEPORT LA 710  SHREVEPORT LA 710  SCF SHREVEPORT LA
                                     S.                 710.            
                                    SCHEME A                            
711............  STREVEPORT LA 711  STREVEPORT LA 710  SCF STREVEPORT LA
                                     S.                 710.            
                                    SCHEME A                            
712............  MONROE LA 712....  MONROE LA 712....  MONROE LA 712.D  
713............  ALEXANDRIA LA 713  SHREVEPORT LA 713  SCF ALEXANDRIA LA
                                     S.                 713.            
                                    SCHEME B                            
714............  ALEXANDRIA LA 714  SHREVEPORT LA 713  SCF ALEXANDRIA LA
                                     S.                 713.            
                                    SCHEME B                            
715 X                                                                   
716............  PINE BLUFF AR 716  PINE BLUFF AR 716  PINE BLUFF AR    
                                                        716.D           
717............  CAMDEN AR 717....  CAMDEN AR 717....  CAMDEN AR 717.D  
718............  TEXARKANA TX 718.  TEXARKANA TX 718.  SCF TEXARKANA TX 
                                                        755.            
719............  HOT SPRINGS NTL    HOT SPRINGS NTL    HOT SPRINGS NTL  
                  PK AR 719.         PK AR 719.         PK AR 719.D     
720............  LITTLE ROCK AR     LITTLE ROCK AR     SCF LITTLE ROCK  
                  720.               720.               AR 720.         
721............  LITTLE ROCK AR     LITTLE ROCK AR     SCF LITTLE ROCK  
                  721.               721.               AR 720.         
722............  LITTLE ROCK AR     LITTLE ROCK AR     SCF LITTLE ROCK  
                  722 U.             722.               AR 720.         
723............  MEMPHIS TN 723...  MEMPHIS TN 723...  SCF MEMPHIS TN   
                                                        380.            
724............  JONESBORO AR 724.  JONESBORO AR 724.  JONESBORO AR     
                                                        724.D           
725............  BATESVILLE AR 725  BATESVILLE AR 725  BATESVILLE AR    
                                                        725.D           

[[Page 10153]]
                                                                        
726............  HARRISON AR 726..  HARRISON AR 726..  HARRISON AR 726.D
727............  FAYETTEVILLE AR    FAYETTEVILLE AR    FAYETTEVILLE AR  
                  727.               727.               727.D           
728............  RUSSELLVILLE AR    RUSSELLVILLE AR    RUSSELLVILLE AR  
                  728.               728.               728.D           
729............  FORT SMITH 729...  FORT SMITH 729...  FORT SMITH 729.D 
730............  OKLAHOMA CITY OK   OKLAHOMA CITY OK   SCF OKLAHOMA CITY
                  730.               730.               OK 730.         
731............  OKLAHOMA CITY OK   OKLAHOMA CITY OK   SCF OKLAHOMA CITY
                  731 U.             731.               OK 730.         
732 X                                                                   
733............  AUSTIN TX 733....  AUSTIN TX 733....  SCF AUSTIN TX    
                                                        786.            
734............  ARDMORE OK 734...  ARDMORE OK 734...  ARDMORE OK 734.D 
735............  LAWTON OK 735....  LAWTON OK 735....  LAWTON OK 735.D  
736............  CLINTON OK 736...  CLINTON OK 736...  CLINTON OK 736.D 
737............  ENID OK 737......  ENID OK 737......  ENID OK 737.D    
738............  WOODWARD OK 738..  WOODWARD OK 738..  WOODWARD OK 738.D
739............  LIBERAL KS 739...  LIBERAL KS 739...  SCF LIBERAL KS   
                                                        679.            
740............  TULSA OK 740.....  TULSA OK 740.....  SCF TULSA OK 740.
741............  TULSA OK 741 U...  TULSA OK 741.....  SCF TULSA OK 740.
742 X                                                                   
743............  TULSA OK 743.....  TULSA OK 743.....  SCF TULSA OK 740.
744............  MUSKOGEE OK 744..  MUSKOGEE OK 744..  MUSKOGEE OK 744.D
745............  MCALESTER OK 745.  MCALESTER OK 745.  LCALESTER OK     
                                                        745.D           
746............  PONCA CITY OK 746  PONCA CITY OK 746  PONCA CITY OK    
                                                        746.D           
747............  DURANT OK 747....  DURANT OK 747....  DURANT OK 747.D  
748............  SHAWNEE OK 748...  SHAWNEE OK 748...  SHAWNEE OK 748.D 
749............  POTEAU OK 749....  POTEAU OK 749....  POTEAU OK 749.D  
750............  NORTH TEXAS TX     NORTH TEXAS TX     NORTH TEXAS TX   
                  750.               750.               750.D           
751............  DALLAS TX 751....  DALLAS TX 751....  SCF DALLAS TX    
                                                        752.            
752............  DALLAS TX 752 U..  DALLAS TX 752 S..  SCF DALLAS TX    
                                                        752.            
753............  DALLAS TX 753 U..  DALLAS TX 752 S..  SCF DALLAS TX    
                                                        752.            
754............  GREENVILLE TX 754  GREENVILLE TX 754  GREENVILLE TX    
                                                        754.D           
755............  TEXARKANA TX 755.  TEXARKANA TX 755.  SCF TEXARKANA TX 
                                                        755.            
756............  LONGVIEW TX 756..  LONGVIEW TX 756..  LONGVIEW TX 756.D
757............  TYLER TX 757.....  TYLER TX 757.....  TYLER TX 757.D   
758............  PALESTINE TX 758.  PALESTINE TX 758.  PALESTINE TX     
                                                        758.D           
759............  LUFKIN TX 759....  LUFKIN TX 759....  LUFKIN TX 759.D  
760............  FORT WORTH TX 760  FORT WORTH TX 760  SCF FORT WORTH TX
                                                        760.            
761............  FORT WORTH TX 761  FORT WORTH TX 761  SCF FORT WORTH TX
                  U.                                    760.            
762............  FORT WORTH TX 762  FORT WORTH TX 762  SCF FORT WORTH TX
                                                        760.            
763............  WICHITA FALLS TX   WICHITA FALLS TX   WICHITA FALLS TX 
                  763.               763.               763.D           
764............  FORT WORTH TX 764  FORT WORTH TX 764  SCF FORT WORTH TX
                                                        760.            
765............  WACO TX 765......  WACO TX 765......  SCF WACO TX 766. 
766............  WACO TX 766......  WACO TX 766......  SCF WACO TX 766. 
767............  WACO TX 767U.....  WACO TX 767......  SCF WACO TX 766. 
768............  ABILENE TX 768...  ABILENE TX 768...  SCF ABILENE TX   
                                                        795.            
769............  MIDLAND TX 769...  MIDLAND TX 769...  SCF MIDLAND TX   
                                                        797.            
770............  HOUSTON TX 770 U.  HOUSTON TX 770...  SCF HOUSTON TX   
                                                        770.            
771............  HOUSTON TX 771 U.  HOUSTON TX 771...  SCF HOUSTON TX   
                                                        770.            
772............  HOUSTON TX 772 U.  HOUSTON TX 772...  SCF HOUSTON TX   
                                                        770.            
773............  NORTH HOUSTON TX   NORTH HOUSTON TX   SCF NORTH HOUSTON
                  773.               773.               TX 773.         
774............  NORTH HOUSTON TX   NORTH HOUSTON TX   SCF NORTH HOUSTON
                  774.               774.               TX 773.         
775............  NORTH HOUSTON TX   NORTH HOUSTON TX   SCF NORTH HOUSTON
                  775.               775.               TX 773.         
776............  BEAUMONT TX 776..  BEAUMONT TX 776..  SCF BEAUMONT TX  
                                                        776.            
777............  BEAUMONT TX 777 U  BEAUMONT TX 777..  SCF BEAUMONT TX  
                                                        776.            
778............  BRYAN TX 778.....  BRYAN TX 778.....  BRYAN TX 778.D   
779............  VICTORIA TX 779..  VICTORIA TX 779..  VICTORIA TX 779.D
780............  SAN ANTONIO TX     SAN ANTONIO TX     SCF SAN ANTONIO  
                  780.               780.               TX 780.         
781............  SAN ANTONIO TX     SAN ANTONIO TX     SCF SAN ANTONIO  
                  781.               781.               TX 780.         
782............  SAN ANTONIO TX     SAN ANTONIO TX     SCF SAN ANTONIO  
                  782 U.             782.               780.            
783............  CORPUS CHRISTI TX  CORPUS CHRISTI TX  SCF CORPUS       
                  783.               783.               CHRISTI TX 783. 
784............  CORPUS CHRISTI TX  CORPUS CHRISTI TX  SCF CORPUS       
                  784 U.             784.               CHRISTI TX 783. 
785............  MCALLEN TX 785...  MCALLEN TX 785...  MCALLEN TX 785.D 
786............  AUSTIN TX 786....  AUSTIN TX 786 S..  SCF AUSTIN TX    
                                                        786.            
787............  AUSTIN TX 787 U..  AUSTIN TX 787....  SCF AUSTIN TX    
                                                        786.            
788............  SAN ANTONIO TX     SAN ANTONIO TX     SCF SAN ANTONIO  
                  788.               788.               TX 780.         
789............  AUSTIN TX 789....  AUSTIN TX 786 S..  SCF AUSTIN TX    
                                                        786.            
790............  AMARILLO TX 790..  AMARILLO TX 790..  SCF AMARILLO TX  
                                                        790.            
791............  AMARILLO TX 791 U  AMARILLO TX 791..  SCF AMARILLO TX  
                                                        790.            
792............  CHILDRESS TX 792.  CHILDRESS TX 792.  CHILDRESS TX     
                                                        792.D           
793............  LUBBOCK TX 793...  LUBBOCK TX 793...  SCF LUBBOCK TX   
                                                        793.            
794............  LUBBOCK TX 794 U.  LUBBOCK TX 794...  SCF LUBBOCK TX   
                                                        793.            
795............  ABILENE TX 795...  ABILENE TX 795...  SCF ABILENE TX   
                                                        795.            
796............  ABILENE TX 796 U.  ABILENE TX 796...  SCF ABILENE TX   
                                                        795.            
797............  MIDLAND TX 797...  MIDLAND TX 797...  SCF MIDLAND TX   
                                                        797.            

[[Page 10154]]
                                                                        
798............  EL PASO TX 798...  EL PASO TX 798...  SCF EL PASO TX   
                                                        798.            
799............  EL PASO TX 799 U.  EL PASO TX 799...  SCF EL PASO TX   
                                                        798.            
800............  DENVER CO 800....  DENVER CO 800....  SCF DENVER CO    
                                                        800.            
801............  DENVER CO 801....  DENVER CO 801....  SCF DENVER CO    
                                                        800.            
802............  DENVER CO 802 U..  DENVER CO 802....  SCF DENVER CO    
                                                        800.            
803............  BOULDER CO 803 U.  BOULDER CO 803...  SCF DENVER CO    
                                                        800.            
804............  DENVER CO 804....  DENVER CO 804....  SCF DENVER CO    
                                                        800.            
805............  LONGMONT CO 805..  LONGMONT CO 805..  LONGMONT CO 805.D
806............  BRIGHTON CO 806..  BRIGHTON CO 806..  SCF BRIGHTON CO  
                                                        806.            
807............  BRIGHTON CO 807..  BRIGHTON CO 807..  SCF BRIGHTON CO  
                                                        806.            
808............  COLORADO SPGS CO   COLORADO SPGS CO   SCF COLORADO SPGS
                  808.               808 S.             CO 808.         
809............  COLORADO SPGS CO   COLORADO SPGS CO   SCF COLORADO SPGS
                  809 U.             808 S.             CO 808.         
810............  PUEBLO CO 810....  PUEBLO CO 810....  PUEBLO CO 810.D  
811............  ALAMOSA CO 811...  ALAMOSA CO 811...  ALAMOSA CO 811.D 
812............  SALIDA CO 812....  SALIDA CO 812....  SALIDA CO 812.D  
813............  DURANGO CO 813...  DURANGO CO 813...  DURANGO CO 813.D 
814............  GRAND JUNCTION CO  GRAND JUNCTION CO  SCF GRAND        
                  814.               814.               JUNCTION CO 814.
815............  GRAND JUNCTION CO  GRAND JUNCTION CO  SCF GRAND        
                  815.               815.               JUNCTION CO 814.
816............  GLENWOOD SPRINGS   GLENWOOD SPRINGS   GLENWOOD SPRINGS 
                  CO 816.            CO 816.            CO 816.D        
817 X                                                                   
818 X                                                                   
819 X                                                                   
820............  CHEYENNE WY 820..  CHEYENNE WY 820..  CHEYENNE WY 820.D
821............  YELLOWSTONE NAT    BILLINGS MT 590 S  SCF BILLINGS MT  
                  PK WY 821U.                           590.            
822............  WHEATLAND WY 822.  WHEATLAND WY 822.  WHEATLAND WY     
                                                        822.D           
823............  RAWLINS WY 823...  RAWLINS WY 823...  RAWLINS WY 823.D 
824............  WORLAND WY 824...  WORLAND WY 824...  WORLAND WY 824.D 
825............  RIVERTON WY 825..  RIVERTON WY 825..  RIVERTON WY 825.D
826............  CASPER WY 826....  CASPER WY 826....  CASPER WY 826.D  
827............  GILLETTE WY 827..  GILLETTE WY 827..  GILLETTE WY 827.D
828............  SHERIDAN WY 828..  SHERIDAN WY 828..  SHERIDAN WY 828.D
829............  ROCK SPRINGS WY    ROCK SPRINGS WY    SCF ROCK SPRINGS 
                  829.               829.               WY 829.         
830............  ROCK SPRINGS WY    ROCK SPRINGS WY    SCF ROCK SPRINGS 
                  830.               830.               WY 829.         
831............  ROCK SPRINGS WY    ROCK SPRINGS WY    SCF ROCK SPRINGS 
                  831.               831.               WY 829.         
832............  POCATELLO ID 832.  POCATELLO ID 832.  SCF POCATELLO ID 
                                                        832.            
833............  TWIN FALLS ID 833  TWIN FALLS ID 833  TWIN FALLS ID    
                                                        833.D           
834............  POCATELLO ID 834.  POCATELLO ID 834.  SCF POCATELLO ID 
                                                        832.            
835............  LEWISTON ID 835..  LEWISTON ID 835..  SCF LEWISTON ID  
                                                        835.            
836............  BOISE ID 836.....  BOISE ID 836.....  SCF BOISE ID 836.
837............  BOISE ID 837 U...  BOISE ID 837.....  SCF BOISE ID 836.
838............  SPOKANE WA 838...  SPOKANE WA 838...  SCF SPOKANE WA   
                                                        990.            
839 X                                                                   
840............  SALT LAKE CITY UT  SALT LAKE CITY UT  SCF SALT LAKE    
                  840.               840 S.             CITY UT 840.    
841............  SALT LAKE CITY UT  SALT LAKE CITY UT  SCF SALT LAKE    
                  841 U.             840 S.             CITY UT 840.    
842............  SALT LAKE CITY UT  SALT LAKE CITY UT  SCF SALT LAKE    
                  842.               840 S.             CITY UT 840.    
843............  SALT LAKE CITY UT  SALT LAKE CITY UT  SCF SALT LAKE    
                  843.               840 S.             CITY UT 840.    
844............  OGDEN UT 844 U...  SALT LAKE CITY UT  SCF SALT LAKE    
                                     840 S.             CITY UT 840.    
845............  PROVO UT 845.....  PROVO UT 845.....  SCF PROVO UT 845.
846............  PROVO UT 846.....  PROVO UT 846.....  SCF PROVO UT 845.
847............  PROVO UT 847.....  PROVO UT 847.....  SCF PROVO UT 845.
848 X                                                                   
849 X                                                                   
850............  PHOENIX AZ 850 U.  PHOENIX AZ 850...  SCF PHOENIX AZ   
                                                        852.            
851 X                                                                   
852............  PHOENIX AZ 852...  PHOENIX AZ 852...  SCF PHOENIX AZ   
                                                        852.            
853............  PHOENIX AZ 853...  PHOENIX AZ 853...  SCF PHOENIX AZ   
                                                        852.            
854 X                                                                   
855............  GLOBE AZ 855.....  GLOBE AZ 855.....  GLOBE AZ 855.D   
856............  TUCSON AZ 856....  TUCSON AZ 856....  SCF TUCSON AZ    
                                                        856.            
857............  TUCSON AZ 857 U..  TUCSON AZ 857....  SCF TUCSON AZ    
                                                        856.            
858 X                                                                   
859............  SHOW LOW AZ 859..  SHOW LOW AZ 859..  SHOW LOW AZ 859.D
860............  FLAGSTAFF AZ 860.  FLAGSTAFF AZ 860.  FLAGSTAFF AZ     
                                                        860.D           
861 X                                                                   
862 X                                                                   
863............  PRESCOTT AZ 863..  PRESCOTT AZ 863..  PRESCOTT AZ 863.D
864............  KINGMAN AZ 864...  KINGMAN AZ 864...  KINGMAN AZ 864.D 
865............  GALLUP NM 865....  GALLUP NM 865....  SCF GALLUP NM    
                                                        873.            
866 X                                                                   
867 X                                                                   
868 X                                                                   
869 X                                                                   

[[Page 10155]]
                                                                        
870............  ALBUQUERQUE NM     ALBUQUERQUE NM     SCF ALBUQUERQUE  
                  870.               870.               NM 870.         
871............  ALBUQUERQUE NM     ALBUQUERQUE NM     SCF ALBUQUERQUE  
                  871 U.             871.               NM 870.         
872............  ALBUQUERQUE NM     ALBUQUERQUE NM     SCF ALBUQUERQUE  
                  872 U.             872.               NM 870.         
873............  GALLUP NM 873....  GALLUP NM 873....  SCF GALLUP NM    
                                                        873.            
874............  FARMINGTON NM 874  FARMINGTON NM 874  FARMINGTON NM    
                                                        874.D           
875............  ALBUQUERQUE NM     ALBUQUERQUE NM     SCF ALBUQUERQUE  
                  875.               875.               NM 870.         
876 X                                                                   
877............  LAS VEGAS NM 877.  LAS VEGAS NM 877.  LAS VEGAS NM     
                                                        877.D           
878............  SOCORRO NM 878...  SOCORRO NM 878...  SOCORRO NM 878.D 
879............  TRUTH OR CONS NM   TRUTH OR CONS NM   TRUTH OR CONS NM 
                  879.               879.               879.D           
880............  LAS CRUCES NM 880  LAS CRUCES NM 880  LAS CRUCES NM    
                                                        880.D           
881............  CLOVIS NM 881....  CLOVIS NM 881....  CLOVIS NM 881.D  
882............  ROSWELL NM 882...  ROSWELL NM 882...  ROSWELL NM 882.D 
883............  CARRIZOZO NM 883.  CARRIZOZO NM 883.  CARRIZOZO NM     
                                                        883.D           
884............  TUCUMCARI NM 884.  TUCUMCARI NM 884.  TUCUMCARI NM     
                                                        884.D           
885............  EL PASO TX 885 U.  EL PASO TX 885...  SCF EL PASO TX   
                                                        798.            
886 X                                                                   
887 X                                                                   
888 X                                                                   
889............  LAS VEGAS NV 889   LAS VEGAS NV 890   SCF LAS VEGAS NV 
                  U.                 S.                 890.            
890............  LAS VEGAS NV 890.  LAS VEGAS NV 890   SCF LAS VEGAS NV 
                                     S.                 890.            
891............  LAS VEGAS NV 891   LAS VEGAS NV 890   SCF LAS VEGAS NV 
                  U.                 S.                 890.            
892 X                                                                   
893............  ELY NV 893.......  ELY NV 893.......  ELY NV 893.D     
894............  RENO NV 894......  RENO NV 894 S....  SCF RENO NV 894. 
895............  RENO NV 895 U....  RENO NV 894 S....  SCF RENO NV 894. 
896 X                                                                   
897............  CARSON CITY NV     RENO NV 894 S....  SCF RENO NV 894. 
                  897 U.                                                
898............  ELKO NV 898......  ELKO NV 898......  ELKO NV 898.D    
899 X                                                                   
900............  LOS ANGELES CA     LOS ANGELES CA     SCF LOS ANGELES  
                  900 U.             900 S.             CA 900.         
901............  LOS ANGELES CA     LOS ANGELES CA     SCF LOS ANGELES  
                  901 U.             900 S.             CA 900.         
902............  INGLEWOOD CA 902.  INGLEWOOD CA 902   SCF INGLEWOOD CA 
                                     S.                 902.            
903............  INGLEWOOD CA 903   INGLEWOOD CA 902   SCF INGLEWOOD CA 
                  U.                 S.                 902.            
904............  SANTA MONICA CA    INGLEWOOD CA 902   SCF INGLEWOOD CA 
                  904 U.             S.                 902.            
905............  TORRANCE CA 905 U  INGLEWOOD CA 902   SCF INGLEWOOD CA 
                                     S.                 902.            
906............  LONG BEACH CA 906  LONG BEACH CA 907  SCF LONG BEACH CA
                                     S.                 907.            
907............  LONG BEACH CA 907  LONG BEACH CA 907  SCF LONG BEACH CA
                                     S.                 907.            
908............  LONG BEACH CA 908  LONG BEACH CA 907  SCF LONG BEACH CA
                  U.                 S.                 907.            
909 X                                                                   
910............  PASADENA CA 910..  PASADENA CA 910..  SCF PASADENA CA  
                                                        910.            
911............  PASADENA CA 911 U  PASADENA CA 911..  SCF PASADENA CA  
                                                        910.            
912............  GLENDALE CA 912 U  GLENDALE CA 912..  SCF PASADENA CA  
                                                        910.            
913............  VAN NUYS CA 913..  VAN NUYS CA 913 S  SCF VAN NUYS CA  
                                                        913.            
914............  VAN NUYS CA 914 U  VAN NUYS CA 913 S  SCF VAN NUYS CA  
                                                        913.            
915............  BURBANK CA 915 U.  VAN NUYS CA 913 S  SCF VAN NUYS CA  
                                                        913.            
916............  NORTH HOLLYWOOD    VAN NUYS CA 913 S  SCF VAN NUYS CA  
                  CA 916 U.                             913.            
917............  INDUSTRY CA 917..  INDUSTRY CA 917 S  SCF INDUSTRY CA  
                                                        917.            
918............  INDUSTRY CA 918 U  INDUSTRY CA 917 S  SCF INDUSTRY CA  
                                                        917.            
919............  SAN DIEGO CA 919.  SAN DIEGO CA 920   SCF SAN DIEGO CA 
                                     S.                 920.            
920............  SAN DIEGO CA 920.  SAN DIEGO CA 920   SCF SAN DIEGO CA 
                                     S.                 920.            
921............  SAN DIEGO CA 921   SAN DIEGO CA 921.  SCF SAN DIEGO CA 
                  U.                                    920.            
922............  PALM SPRINGS CA    PALM SPRINGS CA    PALM SPRINGS CA  
                  922.               922.               922.D           
923............  SAN BERNARDINO CA  SAN BERNARDINO CA  SCF SAN          
                  923.               923 S.             BERNARDINO CA   
                                                        923.            
924............  SAN BERNARDINO CA  SAN BERNARDINO CA  SCF SAN          
                  924 U.             923 S.             BERNARDINO CA   
                                                        923.            
925............  SAN BERNARDINO CA  SAN BERNARDINO CA  SCF SAN          
                  925.               923 S.             BERNARDINO CA   
                                                        923.            
926............  SANTA ANA CA 926.  SANTA ANA CA 926   SCF SANTA ANA CA 
                                     S.                 926.            
927............  SANTA ANA CA 927   SANTA ANA CA 926   SCF SANTA ANA CA 
                  U.                 S.                 926.            
928............  ANAHEIM CA 928 U.  ANAHEIM CA 928...  SCF SANTA ANA CA 
                                                        926.            
929 X                                                                   
930............  OXNARD CA 930....  OXNARD CA 930....  OXNARD CA 930.D  
931............  SANTA BARBARA CA   SANTA BARBARA CA   SCF SANTA BARBARA
                  931 U.             931.               CA 931.         
932............  BAKERSFIELD CA     BAKERSFIELD CA     SCF BAKERSFIELD  
                  932.               932.               CA 932.         
933............  BAKERSFIELD CA     BAKERSFIELD CA     SCF BAKERSFIELD  
                  933 U.             933.               CA 932.         
934............  SANTA BARBARA CA   SANTA BARBARA CA   SCF SANTA BARBARA
                  934.               934.               CA 931.         
935............  MOJAVE CA 935....  MOJAVE CA 935....  MOJAVE CA 935.D  
936............  FRESNO CA 936....  FRESNO CA 936....  SCF FRESNO CA    
                                                        936.            
937............  FRESNO CA 937 U..  FRESNO CA 937....  SCF FRESNO CA    
                                                        936.            
938............  FRESNO CA 938....  FRESNO CA 938....  SCF FRESNO CA    
                                                        936.            
939............  SALINAS CA 939...  SALINAS CA 939...  SALINAS CA 939.  
940............  SAN FRANCISCO CA   SAN FRANCISCO CA   SCF SAN FRANCISCO
                  940.               940 S.             CA 940.         
                                    SCHEME A                            

[[Page 10156]]
                                                                        
941............  SAN FRANCISCO CA   SAN FRANCISCO CA   SCF SAN FRANCISCO
                  941 U.             941.               CA 940.         
942............  SACRAMENTO CA 942  SACRAMENTO CA 942  SCF SACRAMENTO CA
                  U.                                    956.            
943............  PALO ALTO CA 943   SAN FRANCISCO CA   SCF SAN FRANCISCO
                  U.                 940 S.             CA 940.         
                                    SCHEME A                            
944............  SAN MATEO CA 944   SAN FRANCISCO CA   SCF SAN FRANCISCO
                  U.                 940 S.             CA 940.         
                                    SCHEME A                            
945............  OAKLAND CA 945...  OAKLAND CA 945 S.  SCF OAKLAND CA   
                                    SCHEME A            945.            
946............  OAKLAND CA 946 U.  OAKLAND CA 946 S.  SCF OAKLAND CA   
                                    SCHEME B            945.            
947............  BERKELEY CA 947 U  OAKLAND CA 946 S.  SCF OAKLAND      
                                    SCHEME B            CA945.          
948............  RICHMOND CA 948 U  OAKLAND CA 945 S.  SCF OAKLAND CA   
                                    SCHEME A            945.            
949............  NORTH BAY CA 949.  NORTH BAY CA 949.  SCF NORTH BAY CA 
                                                        949.            
950............  SAN JOSE CA 950..  SAN JOSE CA 950..  SCF SAN JOSE CA  
                                                        950.            
951............  SAN JOSE CA 951 U  SAN JOSE CA 951..  SCF SAN JOSE CA  
                                                        950.            
952............  STOCKTON, CA 952.  STOCKTON, CA 952   SCF STOCKTON, CA 
                                     S.                 952.            
953............  STOCKTON, CA 953.  STOCKTON, CA 952   SCF STOCKTON, CA 
                                     S.                 952.            
954............  NORTH BAY CA 954.  NORTH BAY CA 954.  SCF NORTH BAY CA 
                                                        949.            
955............  EUREKA CA 955....  EUREKA CA 955....  EUREKA CA 955.D  
956............  SACRAMENTO CA 956  SACRAMENTO CA 956  SCF SACRAMENTO CA
                                     S.                 956.            
957............  SACRAMENTO CA 957  SACRAMENTO CA 956  SCF SACRAMENTO CA
                                     S.                 956.            
958............  SACRAMENTO CA 958  SACRAMENTO CA 958  SCF SACRAMENTO CA
                  U.                                    956.            
959............  MARYSVILLE CA 959  MARYSVILLE CA 959  MARYSVILLE CA    
                                                        959.D           
960............  REDDING CA 960...  REDDING CA 960...  REDDING CA 960.D 
961............  RENO NV 961......  RENO NV 961......  SCF RENO NV 894. 
962............  APO/FPO AP 962...  SAN FRANCISCO CA   .................
                                     962 S.                             
                                    SCHEME B                            
963............  APO/FPO AP 963...  SAN FRANCISCO CA   .................
                                     962 S.                             
                                    SCHEME B                            
964............  APO/FPO AP 964...  SAN FRANCISCO CA   .................
                                     962 S.                             
                                    SCHEME B                            
965............  APO/FPO AP 965...  SAN FRANCISCO CA   .................
                                     962 S.                             
                                    SCHEME B                            
966............  FPO AP 966.......  SAN FRANCISCO CA   .................
                                     962 S.                             
                                    SCHEME B                            
967............  HONOLULU HI 967..  HONOLULU HI 967 S  SCF HONOLULU HI  
                                                        967.            
968............  HONOLULU HI 968 U  HONOLULU HI 967 S  SCF HONOLULU HI  
                                                        967.            
969............  BARRIGADA GU 969.  [FCM Only]         BARRIGADA GU     
                                     HONOLULU HI 967    969.D           
                                     S.                                 
                                    [PER and STD]                       
                                     OAKLAND CA 945 S.                  
970............  PORTLAND OR 970..  PORTLAND OR 970..  SCF PORTLAND OR  
                                                        970.            
971............  PORTLAND OR 971..  PORTLAND OR 971..  SCF PORTLAND OR  
                                                        970.            
972............  PORTLAND OR 972 U  PORTLAND OR 972..  SCF PORTLAND OR  
                                                        970.            
973............  SALEM OR 973.....  SALEM OR 973.....  SALEM OR 973.D   
974............  EUGENE OR 974....  EUGENE OR 974....  EUGENE OR 974.D  
975............  MEDFORD OR 975...  MEDFORD OR 975...  MEDFORD OR 975.D 
976............  KLAMATH FALLS OR   KLAMATH FALLS OR   KLAMATH FALLS OR 
                  976.               976.               976.D           
977............  BEND OR 977......  BEND OR 977......  BEND OR 977.D    
978............  PENDLETON OR 978.  PENDLETON OR 978.  PENDLETON OR     
                                                        978.D           
979............  BOISE ID 979.....  BOISE ID 979.....  SCF BOISE ID 836.
980............  SEATTLE WA 980...  SEATTLE WA 980...  SCF SEATTLE WA   
                                                        980.            
981............  SEATTLE WA 981 U.  SEATTLE WA 981...  SCF SEATTLE WA   
                                                        980.            
982............  EVERETT WA 982...  EVERETT WA 982...  EVERETT WA 982.D 
983............  TACOMA WA 983....  TACOMA WA 983....  SCF TACOMA WA    
                                                        983.            
984............  TACOMA WA 984 U..  TACOMA WA 984....  SCF TACOMA WA    
                                                        983.            
985............  OLYMPIA WA 985...  OLYMPIA WA 985...  OLYMPIA WA 985.D 
986............  PORTLAND OR 986..  PORTLAND OR 986..  SCF PORTLAND OR  
                                                        970.            
987 X                                                                   
988............  WENATCHEE WA 988.  WENATCHEE WA 988.  WENATCHEE WA     
                                                        988.D           
989............  YAKIMA WA 989....  YAKIMA WA 989....  YAKIMA WA 989.D  
990............  SPOKANE WA 990...  SPOKANE WA 990...  SCF SPOKANE WA   
                                                        990.            
991............  SPOKANE WA 991...  SPOKANE WA 991...  SCF SPOKANE WA   
                                                        990.            
992............  SPOKANE WA 992 U.  SPOKANE WA 992...  SCF SPOKANE WA   
                                                        990.            
993............  PASCO WA 993.....  PASCO WA 993.....  PASCO WA 993.D   
994............  LEWISTON ID 994..  LEWISTON ID 994..  SCF LEWISTON ID  
                                                        835.            
995............  ANCHORAGE AK 995.  ANCHORAGE AK 995.  SCF ANCHORAGE AK 
                                                        995.            
996............  ANCHORAGE AK 996.  ANCHORAGE AK 996.  SCF ANCHORAGE AK 
                                                        995.            
997............  FAIRBANKS AK 997.  FAIRBANKS AK 997.  FAIRBANKS AK     
                                                        997.D           
998............  JUNEAU AK 998....  JUNEAU AK 998....  JUNEAU AK 998.D  
999............  KETCHIKAN AK 999.  KETCHIKAN AK 999.  KETCHIKAN AK     
                                                        999.D           
------------------------------------------------------------------------
a. ZIP Code: Use this column to find a 3-digit ZIP Code prefix. Those   
  indicated by an X are unassigned.                                     

[[Page 10157]]
                                                                        
b. 3-Digit Destination: Use this information for Line 1 or 3-digit      
  containers (subject to the standards for the rate claimed). Unique 3- 
  digit cities are indicated by a U.                                    
c. 3-Digit Scheme Destination: Use this information for Line 1 on 3-    
  digit/scheme containers (subject to the standards for the rate        
  claimed). Line 2 for destinations indicated by an S must include      
  either ``SCHEME'' or the specific information shown. 3-digit groups by
  scheme group, where applicable, are shown in L003.                    
d. SCF Destination: Use this information for Line 1 on SCF containers   
  (subject to the standards for the rate claimed). SCFs serving only a  
  single 3-digit area are indicated by a D. 3-digit groups by SCF are   
  shown in L005. Destination SCF Standard Mail (A) rates or SCF zone    
  Periodicals rates are available only to those ZIP Code areas for which
  an SCF is shown, except that, for either rate, mailings may be        
  deposited at Watertown SD for mail destinating in 572 and at Mitchell 
  SD for mail destinating in 573.                                       
To order labels from the USPS Label Printing Center, use Form 1578-B and
  indicate set number 001 (unique 3-digit cities only), set number 002  
  (3-digit destinations), or set number 003 (SCF destinations). Requests
  are supplied in lots of 300 (minimum) for each label on the list.     
\1\ =Mail destinating in 3-digit ZIP Code area 008 must be labeled as   
  shown in L601 for Standard Mail machinable parcels, L603 for Standard 
  Mail irregular parcels, and L004 for all other mail.                  


[Add new L003 as follows:]

L003  3-Digit ZIP Code Prefix Groups for 3-Digit Scheme Sortation

    When required by the standards for specific rates, pieces for the 
3-digit ZIP Code prefixes shown in Column A must be combined in trays 
labeled to the corresponding destination shown in Column B. Line 2 on 
tray labels must include ``SCHEME'' except as shown below.

----------------------------------------------------------------------------------------------------------------
                        Column A                                                 Column B                       
----------------------------------------------------------------------------------------------------------------
             3-Digit ZIP Code Prefix Group                                       Label to                       
----------------------------------------------------------------------------------------------------------------
 006-009...............................................  SAN JUAN PR 006.                                       
 010, 011, 013.........................................  SPRINGFIELD MA 010.                                    
 014, 015, 017.........................................  WORCESTER MA 015.                                      
 018, 019, 055.........................................  MIDDLESEX-ESSEX MA 018.                                
 020, 023, 024.........................................  BROCKTON MA 023.                                       
 021, 022..............................................  BOSTON MA 021.                                         
 025, 026..............................................  BUZZARDS BAY MA 025.                                   
 027, 028..............................................  PROVIDENCE RI 028.                                     
 035, 036, 051-053, 059................................  WHITE RVR JCT VT 051                                   
                                                         SCHEME B.                                              
 037, 050..............................................  WHITE RVR JCT VT 050                                   
                                                         SCHEME C.                                              
 038, 039..............................................  PORTSMOUTH NH 038.                                     
 043, 045..............................................  PORTLAND ME 043.                                       
 054, 056..............................................  BURLINGTON VT 054.                                     
 057, 058..............................................  WHITE RVR JCT VT 057                                   
                                                         SCHEME A.                                              
 068, 069..............................................  STAMFORD CT 068.                                       
 074, 076..............................................  HACKENSACK NJ 074.                                     
 077, 088..............................................  KILMER NJ 077.                                         
 078, 079..............................................  WEST JERSEY NJ 078.                                    
 080, 081..............................................  SOUTH JERSEY NJ 080                                    
                                                         SCHEME A.                                              
 082-084...............................................  SOUTH JERSEY NJ 082                                    
                                                         SCHEME B.                                              
 085-087...............................................  TRENTON NJ 085.                                        
 110, 113, 114, 116....................................  QUEENS NY 110.                                         
 120-123...............................................  ALBANY NY 120.                                         
 124, 125, 127.........................................  MID-HUDSON NY 124.                                     
 130-132...............................................  SYRACUSE NY 130.                                       
 133, 134..............................................  UTICA NY 133.                                          
 137-139...............................................  BINGHAMTON NY 137.                                     
 140-143...............................................  BUFFALO NY 140.                                        
 155, 157..............................................  JOHNSTOWN PA 155.                                      
 164, 165..............................................  ERIE PA 164.                                           
 169, 177..............................................  WILLIAMSPORT PA 169.                                   
 180, 181, 183.........................................  LEHIGH VALLEY PA 180.                                  
 191, 192..............................................  PHILADELPHIA PA 191.                                   
 193, 194..............................................  SOUTHEASTERN PA 193.                                   
 197-199...............................................  WIMINGTON DE 197.                                      
 202-205...............................................  WASHINGTON DC 202.                                     
 208, 209..............................................  SUBURBAN MD 208.                                       
 210, 211, 219.........................................  BALTIMORE MD 210.                                      
 224, 225, 238.........................................  RICHMOND VA 224                                        
                                                         SCHEME B.                                              
 230, 231..............................................  RICHMOND VA 230                                        
                                                         SCHEME A.                                              
 233-237...............................................  NORFOLK VA 233.                                        
 240, 241..............................................  ROANOKE VA 240.                                        
 250-252...............................................  CHARLESTON WV 250.                                     
 278, 279..............................................  ROCKY MOUNT NC 278.                                    
 280, 281, 297.........................................  CHARLOTTE NC 280.                                      

[[Page 10158]]
                                                                                                                
 290, 291..............................................  COLUMBIA SC 290.                                       
293, 296...............................................  GREENVILLE SC 296.                                     
 300, 301..............................................  NORTH METRO GA 300.                                    
 303, 311, 399.........................................  ATLANTA GA 303.                                        
 310, 312..............................................  MACON GA 310.                                          
 318, 319..............................................  COLUMBUS GA 318.                                       
 334, 349..............................................  W PALM BEACH FL 334.                                   
 335, 346..............................................  TAMPA FL 335.                                          
 369, 393..............................................  JACKSON MS 393                                         
                                                         SCHEME B.                                              
 377-379...............................................  KNOXVILLE TN 377.                                      
 390, 391..............................................  JACKSON MS 390                                         
                                                         SCHEME A.                                              
 400, 401, 471.........................................  LOUISVILLE KY 400.                                     
 410, 470..............................................  CINCINNATI OH 410                                      
                                                         SCHEME A.                                              
 430, 431, 433.........................................  COLUMBUS OH 430                                        
                                                         SCHEME A.                                              
 434-436...............................................  TOLEDO OH 434.                                         
 437, 438..............................................  COLUMBUS OH 437                                        
                                                         SCHEME B.                                              
 442, 443..............................................  AKRON OH 442.                                          
 444, 445..............................................  YOUNGSTOWN OH 444.                                     
 446, 447..............................................  CANTON OH 446.                                         
 450, 451..............................................  CINCINNATI OH 450                                      
                                                         SCHEME B.                                              
 463, 464..............................................  GARY IN 463.                                           
 465, 466..............................................  SOUTH BEND IN 465.                                     
 484, 485..............................................  FLINT MI 484.                                          
 486, 487..............................................  SAGINAW MI 486.                                        
 490, 491..............................................  KALAMAZOO MI 490.                                      
 498, 499..............................................  IRON MOUNTAIN MI 498.                                  
 500-502...............................................  DES MOINES IA 500                                      
                                                         SCHEME A.                                              
 503, 509..............................................  DES MOINES IA 503                                      
                                                         SCHEME B.                                              
 515, 516, 680.........................................  OMAHA NE 680.                                          
 522, 523..............................................  CEDAR RAPIDS IA 522.                                   
 527, 528, 612.........................................  ROCK ISLAND IL 612.                                    
 535, 538..............................................  MADISON WI 535.                                        
 540, 550..............................................  ST PAUL MN 550.                                        
 541, 542..............................................  GREEN BAY WI 541.                                      
 590-599, 821..........................................  BILLINGS MT 590.                                       
 600, 602..............................................  PALATINE IL 600.                                       
 601, 603..............................................  CAROL STREAM IL 601.                                   
 610, 611..............................................  ROCKFORD IL 610.                                       
 615, 616..............................................  PEORIA IL 615.                                         
 618, 619..............................................  CHAMPAIGN IL 618.                                      
 620, 622, 630, 633....................................  ST LOUIS MO 630.                                       
 654, 655..............................................  SPRINGFIELD MO 654                                     
                                                         SCHEME A.                                              
 656, 657..............................................  SPRINGFIELD MO 656                                     
                                                         SCHEME B.                                              
 670, 671..............................................  WICHITA KS 670.                                        
 710, 711..............................................  SHREVEPORT LA 710                                      
                                                         SCHEME A.                                              
 713, 714..............................................  SHREVEPORT LA 713                                      
                                                         SCHEME B.                                              
 752, 753..............................................  DALLAS TX 752.                                         
 786, 789..............................................  AUSTIN TX 786.                                         
 808, 809..............................................  COLORADO SPGS CO 808.                                  
 840-844...............................................  SALT LAKE CITY UT 840.                                 
 889-891...............................................  LAS VEGAS NV 890.                                      
 894, 895, 897.........................................  RENO NV 894.                                           
 900, 901..............................................  LOS ANGELES CA 900.                                    
 902-905...............................................  INGLEWOOD CA 902.                                      
 906-908...............................................  LONG BEACH CA 907.                                     
 913-916...............................................  VAN NUYS CA 913.                                       
 917, 918..............................................  INDUSTRY CA 917.                                       
 919, 920..............................................  SAN DIEGO CA 920.                                      
923, 925...............................................  SAN BERNARDINO CA 923.                                 
 926, 927..............................................  SANTA ANA CA 926.                                      

[[Page 10159]]
                                                                                                                
 940, 943, 944.........................................  SAN FRANCISCO CA 940                                   
                                                         SCHEME A.                                              
 945, 948..............................................  OAKLAND CA 945                                         
                                                         SCHEME A.                                              
(FCM only).............................................                                                         
945, 948, 969..........................................  OAKLAND CA 945.                                        
                                                         SCHEME A.                                              
(PER and STD only).....................................                                                         
 946, 947..............................................  OAKLAND CA 946                                         
                                                         SCHEME B.                                              
 952, 953..............................................  STOCKTON CA 952.                                       
 956, 957..............................................  SACRAMENTO CA 956.                                     
 962-966...............................................  SAN FRANCISCO CA 962                                   
                                                         SCHEME B.                                              
 967-969 (FCM only)....................................  HONOLULU HI 967.                                       
967-968 (PER and STD only).............................  HONOLULU HI 967.                                       
----------------------------------------------------------------------------------------------------------------



[Add new L004 as follows:]

L004  3-Digit ZIP Code Prefix Groups for ADC Sortation

    Subject to the standards for the rate claimed, pieces for the 3-
digit ZIP Code prefixes shown in Column A must be combined and labeled 
to the corresponding ADC destination shown in Column B. Where noted, 
the destination must be selected based on the class of mail being 
prepared. Unassigned 3-digit prefixes or assigned 3-digit prefixes not 
associated with an ADC are omitted.

----------------------------------------------------------------------------------------------------------------
                        Column A                                                 Column B                       
----------------------------------------------------------------------------------------------------------------
             3-digit ZIP code prefix group                                       Label to                       
----------------------------------------------------------------------------------------------------------------
004, 105-109...........................................  ADC WESTCHESTER NY 105.                                
005, 115, 117-119......................................  ADC LONG ISLAND NY 117.                                
006-009................................................  ADC SAN JUAN PR 006.                                   
010-017................................................  ADC SPRINGFIELD MA 010.                                
018, 019, 021, 022, 055................................  ADC BOSTON MA 021.                                     
020, 023-029...........................................  ADC PROVIDENCE RI 028.                                 
030-034, 038, 039......................................  ADC MANCHESTER NH 030.                                 
035-037, 050-054, 056-059..............................  ADC WHITE RVR JCT VT 050.                              
040-049................................................  ADC PORTLAND ME 040.                                   
060-069................................................  [FCM and STD only] ADC HARTFORD CT 060.                
                                                         [PER only] ADC SOUTHERN CT 064.                        
070-079, 085-089.......................................  [FCM and PER only] ADC DV DANIELS NJ 07099.            
                                                         [STD only] ADC DV DANIELS NJ 00104.                    
080-084................................................  ADC SOUTH JERSEY NJ 080.                               
090-098................................................  [FCM only] AMF KENNEDY NY 00300.                       
                                                         APO/FPO                                                
                                                         [PER and STD only] MILITARY CENTER NY 090.             
100-102, 104...........................................  [FCM and STD only] ADC NEW YORK NY 100.                
                                                         [PER only] ADC JAF NY 10180.                           
103, 110-114, 116......................................  ADC QUEENS NY 110.                                     
120-129................................................  ADC ALBANY NY 120.                                     
130-139................................................  ADC SYRACUSE NY 130.                                   
140-149                                                  ADC BUFFALO NY 140.                                    
150-168, 260...........................................  ADC PITTSBURGH PA 150.                                 
169-178................................................  ADC HARRISBURG PA 170.                                 
179, 189, 193-196......................................  ADC SOUTHEASTERN PA 189.                               
180-188................................................  ADC LEHIGH VALLEY PA 180.                              
190-192................................................  ADC PHILADELPHIA PA 190.                               
197-199................................................  ADC WILMINGTON DE 197.                                 
200, 202-205...........................................  ADC WASHINGTON DC 200.                                 
201, 220-223, 226, 227.................................  [FCM only] ADC DULLES VA 201.                          
                                                         [PER and STD only] ADC NORTHERN VA 220.                
206-209................................................  ADC SOUTHERN MD 206.                                   
210-212, 214-219, 254, 267.............................  ADC BALTIMORE MD 210.                                  
224, 225, 228-239, 244.................................  ADC RICHMOND VA 230.                                   
240-243, 245...........................................  ADC ROANOKE VA 240.                                    
246-253, 255-259.......................................  ADC CHARLESTON WV 250.                                 
261-266, 268...........................................  ADC CLARKSBURG WV 263.                                 
270-279, 285...........................................  ADC GREENSBORO NC 270.                                 
280-284, 286-289, 297..................................  ADC CHARLOTTE NC 280.                                  
290-296................................................  ADC COLUMBIA SC 290.                                   
                                                                                                                

[[Page 10160]]
                                                                                                                
298, 300-303, 305, 306, 308, 309, 311, 399.............  [FCM and PER only] ADC NORTH METRO GA 301.             
                                                         [STD only] ADC NORTH METRO GA 30199.                   
299, 304, 313-315, 320-324, 326, 344...................  [FCM and PER only] ADC JACKSONVILLE FL 320.            
                                                         [STD only] ADC JACKSONVILLE FL 32099.                  
307, 370-374, 376-379, 384, 385........................  [FCM and PER only] ADC NASHVILLE TN 370.               
                                                         [STD only] ADC NASHVILLE TN 37099.                     
310, 312, 316-319......................................  [FCM and PER only] ADC MACON GA 310.                   
                                                         [STD only] ADC MACON GA 31299.                         
325, 365, 366, 394-396, 700, 701, 703-708..............  [FCM and PER only] ADC NEW ORLEANS LA 700.             
                                                         [STD only] ADC NEW ORLEANS LA 70099.                   
327-329, 334, 347, 349.................................  [FCM only] ADC ORLANDO FL 328.                         
                                                         [PER only] ADC MID FLORIDA FL 327.                     
                                                         [STD only] ADC MID FLORIDA FL 32799.                   
330-333................................................  [FCM and PER only] ADC MIAMI FL 331.                   
                                                         [STD only] ADC MIAMI FL 33298.                         
335-339, 342, 346......................................  [FCM only] ADC TAMPA FL 335.                           
                                                         [PER only] ADC MANASOTA FL 342.                        
                                                         [STD only] ADC MANASOTA FL 34299.                      
340....................................................  [FCM only] ADC MIAMI FL 331.                           
                                                         [PER and STD only] MILITARY CENTER NY 090.             
350-352, 354-359, 362..................................  [FCM and PER only] ADC BIRMINGHAM AL 350.              
                                                         [STD only] ADC BIRMINGHAM AL 35099.                    
360, 361, 363, 364, 367, 368...........................  [FCM and PER only] ADC MONTGOMERY AL 360.              
                                                         [STD only] ADC MONTGOMERY AL 36099.                    
369, 390-393, 397......................................  [FCM and PER only] ADC JACKSON MS 390.                 
                                                         [STD only] ADC JACKSON MS 39099.                       
375, 380-383, 386-389, 723.............................  [FCM and PER only] ADC MEMPHIS TN 380.                 
                                                         [STD only] ADC MEMPHIS TN 38099.                       
400-409, 411-418, 420-427, 471, 476, 477...............  ADC LOUISVILLE KY 400.                                 
410, 450-455, 458, 459, 470............................  ADC CINCINNATI OH 450.                                 
430-438, 456, 457......................................  ADC COLUMBUS OH 430.                                   
439-449................................................  ADC CLEVELAND OH 440.                                  
460-469, 472-475, 478, 479.............................  ADC INDIANAPOLIS IN 460.                               
480-489................................................  ADC DETROIT MI 481.                                    
490-497................................................  ADC GRAND RAPIDS MI 493.                               
498, 499, 530-532, 534, 535, 537-539, 541-545, 549.....  ADC MILWAUKEE WI 530.                                  
500-509, 520-528, 612..................................  [FCM only] ADC DES MOINES IA 500.                      
                                                         [PER only] ADC DES MOINES IA 50092.                    
                                                         [STD only] ADC DES MOINES IA 50091.                    
510-516, 680, 681, 683-693.............................  ADC OMAHA NE 680.                                      
540, 546-548, 550, 551, 556-559........................  [FCM only] ADC ST PAUL MN 550.                         
                                                         [PER only] ADC ST PAUL MN 55222.                       
                                                         [STD only] ADC ST PAUL MN 55532.                       
553-555, 560-564, 566..................................  [FCM only] ADC MINNEAPOLIS MN 553.                     
                                                         [PER only] ADC MINNEAPOLIS MN 55228.                   
                                                         [STD only] ADC MINNEAPOLIS MN 55538.                   
565, 567, 580-588......................................  ADC FARGO ND 580.                                      
570-577................................................  ADC SIOUX FALLS SD 570.                                
590-599, 821...........................................  ADC BILLINGS MT 590.                                   
600-603, 610, 611, 613-616.............................  [FCM and STD only] ADC CAROL STREAM IL 601.            
                                                         [PER only] ADC CHICAGO IL 60821.                       
604, 605, 609, 617-619.................................  [FCM and STD only] ADC SOUTH SUBN IL 604.              
                                                         [PER only] ADC CHICAGO IL 60821.                       
606-608................................................  [FCM and STD only] ADC CHICAGO IL 606.                 
                                                         [PER only] ADC CHICAGO IL 60821.                       
620, 622-631, 633-639..................................  [FCM and PER only] ADC ST LOUIS MO 630.                
                                                         [STD only] ADC ST LOUIS MO 63203.                      
640, 641, 644-658, 660-662, 664-668....................  [FCM only] ADC KANSAS CITY MO 640.                     
                                                         [PER only] ADC KANSAS CITY MO 64240.                   
                                                         [STD only] ADC KANSAS CITY MO 66340.                   
669-679, 739...........................................  [FCM only] ADC WICHITA KS 670.                         
                                                         [PER only] ADC WICHITA KS 64270.                       
                                                         [STD only] ADC WICHITA KS 66370.                       
710-714................................................  [FCM and PER only] ADC SHREVEPORT LA 710.              
                                                         [STD only] ADC SHREVEPORT LA 71099.                    
716-722, 724-729.......................................  [FCM and PER only] ADC LITTLE ROCK AR 720.             
                                                         [STD only] ADC LITTLE ROCK AR 72098.                   
730, 731, 734-738, 748.................................  ADC OKLAHOMA CITY OK 730.                              
733, 779-789, 798, 799, 885............................  [FCM and PER only] ADC SAN ANTONIO TX 780.             
                                                         [STD only] ADC SAN ANTONIO TX 78099.                   
740, 741, 743-747, 749.................................  ADC TULSA OK 740.                                      
                                                                                                                

[[Page 10161]]
                                                                                                                
750-759................................................  ADC NORTH TEXAS TX 750.                                
760-769, 790-797.......................................  ADC FT WORTH TX 760.                                   
770-778................................................  ADC NORTH HOUSTON TX 773.                              
800-816................................................  ADC DENVER CO 800.                                     
820, 822-831...........................................  ADC CHEYENNE WY 820.                                   
832-834, 836, 837, 979.................................  ADC BOISE ID 836.                                      
835, 838, 980-985, 988-994, 998, 999...................  ADC SEATTLE WA 980.                                    
840-847, 893, 898......................................  ADC SALT LAKE CITY UT 840.                             
850, 852, 853, 855-857, 859, 860, 863..................  ADC PHOENIX AZ 852.                                    
864, 889-891, 894, 895, 897, 961.......................  ADC LAS VEGAS NV 890.                                  
865, 870-875, 877-884..................................  ADC ALBUQUERQUE NM 870.                                
900, 901...............................................  ADC LOS ANGELES CA 900.                                
902-908, 910-918.......................................  ADC TWIN VALLEY CA 900.                                
919-921................................................  ADC SAN DIEGO CA 920.                                  
922-928, 930-935.......................................  ADC SEQUOIA CA 901.                                    
936-939, 942, 950-953, 955-960.........................  [FCM only] ADC SIERRA CA 940.                          
                                                         [PER and STD only] ADC OAKLAND CA 945.                 
940, 941, 943-949, 954.................................  [FCM only] ADC PENINSULA CA 941.                       
                                                         [PER and STD only] ADC OAKLAND CA 945.                 
962-966................................................  AMF SAN FRANCISCO CA 962.                              
                                                         APO/FPO.                                               
967-968................................................  ADC HONOLULU HI 967.                                   
969....................................................  [FCM only] ADC HONOLULU HI 967.                        
                                                         [PER and STD only] ADC OAKLAND CA 945.                 
970-978, 986...........................................  ADC PORTLAND OR 970.                                   
995-997................................................  ADC ANCHORAGE AK 995.                                  
----------------------------------------------------------------------------------------------------------------



[Add new L005 as follows:]

L005  3-Digit ZIP Code Prefix Group for SCF Sortation

    Subject to the standards for the rate claimed, pieces for the 3-
digit Zip Code prefixes shown in Column A must be combined and labeled 
to the corresponding SCF destination shown in Column B. SCFs serving 
only one 3-digit area are identified by S; Line 1 labels for these 
destinations does not include the ``SCF'' prefix before the facility 
name. Unassigned 3-digit prefixes or assigned 3-digit prefixes not 
associated with an SCF are omitted.

----------------------------------------------------------------------------------------------------------------
                        Column A                                                 Column B                       
----------------------------------------------------------------------------------------------------------------
             3-digit ZIP code prefix group                                       Label to                       
----------------------------------------------------------------------------------------------------------------
004, 105-108...........................................  SCF WESTCHESTER NY 105.                                
005, 117-119...........................................  SCF MID-ISLAND NY 117.                                 
006, 007, 009..........................................  SCF SAN JUAN PR 006.                                   
010, 011, 013..........................................  SCF SPRINGFIELD MA 010.                                
012....................................................  PITTSFIELD MA 012.S                                    
014-017................................................  SCF WORCESTER MA 015.                                  
018, 019, 055..........................................  SCF MIDDLESEX-ESSX MA 018.                             
020, 023, 024..........................................  SCF BROCKTON MA 023.                                   
021, 022...............................................  SCF BOSTON MA 021.                                     
025, 026...............................................  SCF BUZZARDS BAY MA 025.                               
027-029................................................  SCF PROVIDENCE RI 028.                                 
030-034................................................  SCF MANCHESTER NH 030.                                 
035-037, 050-053, 057-059..............................  SCF WHITE RVR JCT VT 050.                              
038, 039...............................................  SCF PORTSMOUTH NH 038.                                 
040-043, 045, 048......................................  SCF PORTLAND ME 040.                                   
044, 046, 047, 049.....................................  SCF BANGOR ME 044.                                     
054, 056...............................................  SCF BURLINGTON VT 054.                                 
060-062................................................  SCF HARTFORD CT 060.                                   
063-066................................................  SCF SOUTHERN CT 064.                                   
067....................................................  WATERBURY CT 067.S                                     
068, 069...............................................  SCF STAMFORD CT 068.                                   
070-073................................................  SCF NEWARK NJ 070.                                     
074, 075...............................................  SCF PATERSON NJ 074.                                   
076....................................................  HACKENSACK NJ 076.S                                    
077....................................................  MONMOUTH NJ 077.S                                      
078, 079...............................................  SCF WEST JERSEY NJ 079.                                
080-084................................................  SCF SOUTH JERSEY NJ 080.                               
085-087................................................  SCF TRENTON NJ 085.                                    
088, 089...............................................  SCF KILMER NJ 088.                                     
100-102................................................  SCF NEW YORK NY 100.                                   
103....................................................  STATEN ISLAND NY 103.S                                 
104....................................................  BRONX NY 104.S                                         

[[Page 10162]]
                                                                                                                
109....................................................  ROCKLAND NY 109.S                                      
110, 113, 114, 116.....................................  SCF QUEENS NY 110.                                     
111....................................................  LONG ISLAND CITY NY 111.S                              
112....................................................  BROOKLYN NY 112.S                                      
115....................................................  WESTERN NASSAU NY 115.S                                
120-123................................................  SCF ALBANY NY 120.                                     
124-127................................................  SCF MID-HUDSON NY 125.                                 
128....................................................  GLENS FALLS NY 128.S                                   
129....................................................  PLATTSBURGH NY 129.S                                   
130-132................................................  SCF SYRACUSE NY 130.                                   
133-135................................................  SCF UTICA NY 133.                                      
136....................................................  WATERTOWN NY 136.S                                     
137-139................................................  SCF BINGHAMTON NY 137.                                 
140-143................................................  SCF BUFFALO NY 140.                                    
144-146................................................  SCF ROCHESTER NY 144.                                  
147....................................................  JAMESTOWN NY 147.S                                     
148, 149...............................................  SCF ELMIRA NY 148.                                     
150-154................................................  SCF PITTSBURGH PA 150.                                 
155, 157, 159..........................................  SCF JOHNSTOWN PA 159.                                  
156....................................................  GREENSBURG PA 156.S                                    
158....................................................  DUBOIS PA 158.S                                        
160-162................................................  SCF NEW CASTLE PA 161.                                 
163....................................................  OIL CITY PA 163.S                                      
164, 165...............................................  SCF ERIE PA 164.                                       
166, 168...............................................  SCF ALTOONA PA 166.                                    
167....................................................  BRANDFORD PA 167.S                                     
169, 177...............................................  SCF WILLIAMSPORT PA 177.                               
170-172, 178...........................................  SCF HARRISBURG PA 170.                                 
173-176................................................  SCF LANCASTER PA 173.                                  
179, 195, 196..........................................  SCF READING PA 195.                                    
180, 181, 183..........................................  SCF LEHIGH VALLEY PA 180.                              
182, 186, 187..........................................  SCF WILKES BARRE PA 186.                               
184, 185, 188..........................................  SCF SCRANTON PA 184.                                   
189, 193, 194..........................................  SCF SOUTHEASTERN PA 189.                               
190-192................................................  SCF PHILADELPHIA PA 190.                               
197-199................................................  SCF WILMINGTON DE 197.                                 
200, 202-205...........................................  SCF WASHINGTON DC 200.                                 
201, 220-223...........................................  SCF NORTHERN VA 220.                                   
206, 207...............................................  SCF SOUTHERN MD 206.                                   
208, 209...............................................  SCF SUBURBAN MD 208.                                   
210-212, 214, 219......................................  SCF BALTIMORE MD 210.                                  
215, 267...............................................  SCF CUMBERLAND MD 215.                                 
216....................................................  EASTON MD 216.S                                        
217....................................................  FREDERICK MD 217.S                                     
218....................................................  SALISBURY MD 218.S                                     
224, 225, 230-232, 238.................................  SCF RICHMOND VA 230.                                   
226....................................................  WINCHESTER VA 226.S                                    
227....................................................  CULPEPER VA 227.S                                      
228, 229, 244..........................................  SCF CHARLOTTESVILLE VA 229.                            
233-237................................................  SCF NORFOLK VA 233.                                    
239....................................................  FARMVILLE VA 239.S                                     
240, 241, 243..........................................  SCF ROANOKE VA 240.                                    
242....................................................  BRISTOL VA 242.S                                       
245....................................................  LYNCHBURG VA 245.S                                     
246-248................................................  SCF BLUEFIELD WV 247.                                  
249....................................................  LEWISBURG WV 249.S                                     
250-253................................................  SCF CHARLESTON WV 250.                                 
254....................................................  MARTINSBURG WV 254.S                                   
255-257................................................  SCF HUNTINGTON WV 255.                                 
258, 259...............................................  SCF BECKLEY WV 258.                                    
260....................................................  WHEELING WV 260.S                                      
261....................................................  PARKERSBURG WV 261.S                                   
262-265................................................  SCF CLARKSBURG WV 263.                                 
266....................................................  GASSAWAY WV 266.S                                      
268....................................................  PETERSBURG WV 268.S                                    
270-274................................................  SCF GREENSBORO NC 270.                                 
275-277................................................  SCF RALEIGH NC 275.                                    
278, 279...............................................  SCF ROCKY MOUNT NC 278.                                
280-282, 297...........................................  SCF CHARLOTTE NC 280.                                  
283, 284...............................................  SCF FAYETTEVILLE NC 283.                               
285....................................................  KINSTON NC 285.S                                       
286....................................................  HICKORY NC 286.S                                       

[[Page 10163]]
                                                                                                                
287-289................................................  SCF ASHEVILLE NC 287.                                  
290-292................................................  SCF COLUMBIA SC 290.                                   
293, 296...............................................  SCF GREENVILLE SC 296.                                 
294....................................................  CHARLESTON SC 294.S                                    
295....................................................  FLORENCE SC 295.S                                      
298, 308, 309..........................................  SCF AUGUSTA GA 308.                                    
299, 313, 314..........................................  SCF SAVANNAH GA 313.                                   
300-302................................................  SCF NORTH METRO GA 300.                                
303, 311, 399..........................................  SCF ATLANTA GA 303.                                    
304....................................................  SWAINSBORO GA 304.S                                    
305, 306...............................................  SCF ATHENS GA 306.                                     
307, 373, 374..........................................  SCF CHATTANOOGA TN 373.                                
310, 312...............................................  SCF MACON GA 310.                                      
315....................................................  WAYCROSS GA 315.S                                      
316....................................................  VALDOSTA GA 316.S                                      
317....................................................  ALBANY GA 317.S                                        
318, 319...............................................  SCF COLUMBUS GA 318.                                   
320, 322...............................................  SCF JACKSONVILLE FL 320.                               
321....................................................  DAYTONA BEACH FL 321.S                                 
323....................................................  TALLAHASSEE FL 323.S                                   
324....................................................  PANAMA CITY FL 324.S                                   
325....................................................  PENSACOLA FL 325.S                                     
326, 344...............................................  SCF GAINESVILLE FL 326.                                
327....................................................  MID-FLORIDA FL 327.S                                   
328, 329, 347..........................................  SCF ORLANDO FL 328.                                    
330....................................................  SOUTH FLORIDA FL 330.S                                 
331, 332...............................................  SCF MIAMI FL 331.                                      
333....................................................  FT LAUDERDALE FL 333.S                                 
334, 349...............................................  SCF WEST PALM BCH FL 334.                              
335, 336, 346..........................................  SCF TAMPA FL 335.                                      
337....................................................  ST PETERSBURG FL 337.S                                 
338....................................................  LAKELAND FL 338.S                                      
339....................................................  FT MYERS FL 339.S                                      
342....................................................  MANASOTA FL 342.S                                      
350-352, 355, 359......................................  SCF BIRMINGHAM AL 350.                                 
354....................................................  TUSCALOOSA AL 354.S                                    
356-358................................................  SCF HUNTSVILLE AL 357.                                 
360, 361, 367, 368.....................................  SCF MONTGOMERY AL 360.                                 
362....................................................  ANNISTON AL 362.S                                      
363....................................................  DOTHAN AL 363.S                                        
364....................................................  EVERGREEN AL 364.S                                     
365, 366...............................................  SCF MOBILE AL 365.                                     
369, 393...............................................  SCF MERIDIAN MS 393.                                   
370-372................................................  SCF NASHVILLE TN 370.                                  
375, 380, 381, 386, 723................................  SCF MEMPHIS TN 380.                                    
376....................................................  JOHNSON CITY TN 376.S                                  
377-379................................................  SCF KNOXVILLE TN 377.                                  
382....................................................  MCKENZIE TN 382.S                                      
383....................................................  JACKSON TN 383.S                                       
384....................................................  COLUMBIA TN 384.S                                      
385....................................................  COOKEVILLE TN 385.S                                    
387....................................................  GREENVILLE MS 387.S                                    
388....................................................  TUPELO MS 388.S                                        
389....................................................  GRENADA MS 389.S                                       
390-392................................................  SCF JACKSON MS 390.                                    
394....................................................  HATTIESBURG MS 394.S                                   
395....................................................  GULFPORT MS 395.S                                      
396....................................................  MCCOMB MS 396.S                                        
397....................................................  COLUMBUS MS 397.S                                      
400-402, 471...........................................  SCF LOUISVILLE KY 400.                                 
403-406................................................  SCF LEXINGTON KY 403.                                  
407-409................................................  SCF LONDON KY 407.                                     
410, 450-452, 459, 470.................................  SCF CINCINNATI OH 450.                                 
411, 412...............................................  SCF ASHLAND KY 411.                                    
413, 414...............................................  SCF CAMPTON KY 413.                                    
415, 416...............................................  SCF PIKEVILLE KY 415.                                  
417, 418...............................................  SCF HAZARD KY 417.                                     
420....................................................  PADUCAH KY 420.S                                       
421, 422...............................................  SCF BOWLING GREEN KY 421.                              
423....................................................  OWENSBORO KY 423.S                                     
424, 476, 477..........................................  SCF EVANSVILLE IN 476.                                 
425, 426...............................................  SCF SOMERSET KY 425.                                   

[[Page 10164]]
                                                                                                                
427....................................................  ELIZABETHTOWN KY 427.S                                 
430-433................................................  SCF COLUMBUS OH 430.                                   
434-436................................................  SCF TOLEDO OH 434.                                     
437, 438...............................................  SCF ZANESVILLE OH 437.                                 
439....................................................  STEUBENVILLE OH 439.S                                  
440, 441...............................................  SCF CLEVELAND OH 440.                                  
442, 443...............................................  SCF AKRON OH 442.                                      
444, 445...............................................  SCF YOUNGSTOWN OH 444.                                 
446, 447...............................................  SCF CANTON OH 446.                                     
448, 449...............................................  SCF MANSFIELD OH 448.                                  
453-455................................................  SCF DAYTON OH 453.                                     
456....................................................  CHILLICOTHE OH 456.S                                   
457....................................................  ATHENS OH 457.S                                        
458....................................................  LIMA OH 458.S                                          
460-462................................................  SCF INDIANAPOLIS IN 460.                               
463, 464...............................................  SCF GARY IN 463.                                       
465, 466...............................................  SCF SOUTH BEND IN 465.                                 
467, 468...............................................  SCF FORT WAYNE IN 467.                                 
469....................................................  KOKOMO IN 469.S                                        
472....................................................  COLUMBUS IN 472.S                                      
473....................................................  MUNCIE IN 473.S                                        
474....................................................  BLOOMINGTON IN 474.S                                   
475....................................................  WASHINGTON IN 475.S                                    
478....................................................  TERRE HAUTE IN 478.S                                   
479....................................................  LAFAYETTE IN 479.S                                     
480, 483...............................................  SCF ROYAL OAK MI 480.                                  
481, 482...............................................  SCF DETROIT MI 481.                                    
484, 485...............................................  SCF FLINT MI 484.                                      
486, 487...............................................  SCF SAGINAW MI 486.                                    
488, 489...............................................  SCF LANSING MI 488.                                    
490, 491...............................................  SCF KALAMAZOO MI 490.                                  
492....................................................  JACKSON MI 492.S                                       
493-495................................................  SCF GRAND RAPIDS MI 493.                               
496....................................................  TRAVERSE CITY MI 496.S                                 
497....................................................  GAYLORD MI 497.S                                       
498, 499...............................................  SCF IRON MOUNTAIN MI 498.                              
500-503, 509...........................................  SCF DES MOINES IA 500.                                 
504....................................................  MASON CITY IA 504.S                                    
505....................................................  FORT DODGE IA 505.S                                    
506, 507...............................................  SCF WATERLOO IA 506.                                   
508....................................................  CRESTON IA 508.S                                       
510, 511...............................................  SCF SIOUX CITY IA 510.                                 
512....................................................  SHELDON IA 512.S                                       
513....................................................  SPENCER IA 513.S                                       
514....................................................  CARROLL IA 514.S                                       
515, 516, 680, 681.....................................  SCF OMAHA NE 680.                                      
520....................................................  DUBUQUE IA 520.S                                       
521....................................................  DECORAH IA 521.S                                       
522-524................................................  SCF CEDAR RAPIDS IA 522.                               
525....................................................  OTTUMWA IA 525.S                                       
526....................................................  BURLINGTON IA 526.S                                    
527, 528, 612..........................................  SCF ROCK ISLAND IL 612.                                
530-532, 534...........................................  SCF MILWAUKEE WI 530.                                  
535, 537, 538..........................................  SCF MADISON WI 535.                                    
539....................................................  PORTAGE WI 539.S                                       
540, 550, 551..........................................  SCF ST PAUL MN 550.                                    
541-543................................................  SCF GREEN BAY WI 541.                                  
544....................................................  WAUSAU WI 544.S                                        
545....................................................  RHINELANDER WI 545.S                                   
546....................................................  LA CROSSE WI 546.S                                     
547....................................................  EAU CLAIRE WI 547.S                                    
548....................................................  SPOONER WI 548.S                                       
549....................................................  OSHKOSH WI 549.S                                       
553-555................................................  SCF MINNEAPOLIS MN 553.                                
556-558................................................  SCF DULUTH MN 556.                                     
559....................................................  ROCHESTER MN 559.S                                     
560....................................................  MANKATO MN 560.S                                       
561....................................................  WINDOM MN 561.S                                        
562....................................................  WILLMAR MN 562.S                                       
563....................................................  ST CLOUD MN 563.S                                      
564....................................................  BRAINERD MN 564.S                                      
565....................................................  DETROIT LAKES MN 565.S                                 

[[Page 10165]]
                                                                                                                
566....................................................  BEMIDJI MN 566.S                                       
567....................................................  THIEF RIVER FALLS MN 567.S                             
570, 571...............................................  SCF SIOUX FALLS SD 570.                                
572, 573...............................................  SCF DAKOTA CENTRAL SD 572.                             
574....................................................  ABERDEEN SD 574.S                                      
575....................................................  PIERRE SD 575.S                                        
576....................................................  MOBRIDGE SD 576.S                                      
577....................................................  RAPID CITY SD 577.S                                    
580, 581...............................................  SCF FARGO ND 580.                                      
582....................................................  GRAND FORKS ND 582.S                                   
583....................................................  DEVILS LAKE ND 583.S                                   
584....................................................  JAMESTOWN ND 584.S                                     
585....................................................  BISMARCK ND 585.S                                      
586....................................................  DICKINSON ND 586.S                                     
587....................................................  MINOT ND 587.S                                         
588....................................................  WILLISTON ND 588.S                                     
590, 591, 821..........................................  SCF BILLINGS MT 590.                                   
592....................................................  WOLF POINT MT 592.S                                    
593....................................................  MILES CITY MT 593.S                                    
594....................................................  GREAT FALLS MT 594.S                                   
595....................................................  HAVRE MT 595.S                                         
596....................................................  HELENA MT 596.S                                        
597....................................................  BUTTE MT 597.S                                         
598....................................................  MISSOULA MT 598.S                                      
599....................................................  KALISPELL MT 599.S                                     
600, 602...............................................  SCF PALATINE IL 600.                                   
601, 603...............................................  SCF CAROL STREAM IL 601.                               
604....................................................  SOUTH SUBURBAN IL 604.S                                
605....................................................  FOX VALLEY IL 605.S                                    
606-608................................................  SCF CHICAGO IL 606.                                    
609....................................................  KANKAKEE IL 609.S                                      
610, 611...............................................  SCF ROCKFORD IL 610.                                   
613....................................................  LA SALLE IL 613.S                                      
614....................................................  GALESBURG IL 614.S                                     
615, 616...............................................  SCF PEORIA IL 615.                                     
617....................................................  BLOOMINGTON IL 617.S                                   
618, 619...............................................  SCF CHAMPAIGN IL 618.                                  
620, 622, 630, 631, 633................................  SCF ST LOUIS MO 630.                                   
623, 634, 635..........................................  SCF QUINCY IL 623.                                     
624....................................................  EFFINGHAM IL 624.S                                     
625-627................................................  SCF SPRINGFIELD IL 625.                                
628....................................................  CENTRALIA IL 628.S                                     
629....................................................  CARBONDALE IL 629.S                                    
636-639................................................  SCF CAPE GIRARDEAU MO 637.                             
640, 641, 649..........................................  SCF KANSAS CITY MO 640.                                
644, 645...............................................  SCF ST JOSEPH MO 644.                                  
646....................................................  CHILLICOTHE MO 646.S                                   
647....................................................  HARRISONVILLE MO 647.S                                 
648, 654-658...........................................  SCF SPRINGFIELD MO 656.                                
650-653................................................  SCF MID-MISSOURI MO 650.                               
660-662................................................  SCF KANSAS CITY KS 660.                                
664-666, 668...........................................  SCF TOPEKA KS 664.                                     
667....................................................  FT SCOTT KS 667.S                                      
669, 674...............................................  SCF SALINA KS 674.                                     
670-672................................................  SCF WICHITA KS 670.                                    
673....................................................  INDEPENDENCE KS 673.S                                  
675....................................................  HUTCHINSON KS 675.S                                    
676....................................................  HAYS KS 676.S                                          
677....................................................  COLBY KS 677.S                                         
678....................................................  DODGE CITY KS 678.S                                    
679, 739...............................................  SCF LIBERAL KS 679.                                    
683-685................................................  SCF LINCOLN NE 683.                                    
686, 687...............................................  SCF NORFOLK NE 687.                                    
688, 689...............................................  SCF GRAND ISLAND NE 688.                               
690....................................................  MCCOOK NE 690.S                                        
691....................................................  NORTH PLATTE NE 691.S                                  
692....................................................  VALENTINE NE 692.S                                     
693....................................................  ALLIANCE NE 693.S                                      
700, 701...............................................  SCF NEW ORLEANS LA 700.                                
703....................................................  HOUMA LA 703.S                                         
704....................................................  MANDEVILLE LA 704.S                                    
705....................................................  LAFAYETTE LA 705.S                                     

[[Page 10166]]
                                                                                                                
706....................................................  LAKE CHARLES LA 706.S                                  
707, 708...............................................  SCF BATON ROUGE LA 707.                                
710, 711...............................................  SCF SHREVEPORT LA 710.                                 
712....................................................  MONROE LA 712.S                                        
713, 714...............................................  SCF ALEXANDRIA LA 713.                                 
716....................................................  PINE BLUFF AR 716.S                                    
717....................................................  CAMDEN AR 717.S                                        
718, 755...............................................  SCF TEXARKANA TX 755.                                  
719....................................................  HOT SPRINGS NTL PK AR 719.S                            
720-722................................................  SCF LITTLE ROCK AR 720.                                
724....................................................  JONESBORO AR 724.S                                     
725....................................................  BATESVILLE AR 725.S                                    
726....................................................  HARRISON AR 726.S                                      
727....................................................  FAYETTEVILLE AR 727.S                                  
728....................................................  RUSSELLVILLE AR 728.S                                  
729....................................................  FORT SMITH AR 729.S                                    
730, 731...............................................  SCF OKLAHOMA CITY OK 730.                              
733, 786, 787, 789.....................................  SCF AUSTIN TX 786.                                     
734....................................................  ARDMORE OK 734.S                                       
735....................................................  LAWTON OK 735.S                                        
736....................................................  CLINTON OK 736.S                                       
737....................................................  ENID OK 737.S                                          
738....................................................  WOODWARD OK 738.S                                      
740, 741, 743..........................................  SCF TULSA OK 740.                                      
744....................................................  MUSKOGEE OK 744.S                                      
745....................................................  MCALESTER OK 745.S                                     
746....................................................  PONCA CITY OK 746.S                                    
747....................................................  DURANT OK 747.S                                        
748....................................................  SHAWNEE OK 748.S                                       
749....................................................  POTEAU OK 749.S                                        
750....................................................  NORTH TEXAS TX 750.S                                   
751-753................................................  SCF DALLAS TX 752.                                     
754....................................................  GREENVILLE TX 754.S                                    
756....................................................  LONGVIEW TX 756.S                                      
757....................................................  TYLER TX 757.S                                         
758....................................................  PALESTINE TX 758.S                                     
759....................................................  LUFKIN TX 759.S                                        
760-762, 764...........................................  SCF FORT WORTH TX 760.                                 
763....................................................  WICHITA FALLS TX 763.S                                 
765-767................................................  SCF WACO TX 766.                                       
768, 795, 796..........................................  SCF ABILENE TX 795.                                    
769, 797...............................................  SCF MIDLAND TX 797.                                    
770-772................................................  SCF HOUSTON TX 770.                                    
773-775................................................  SCF NORTH HOUSTON TX 773.                              
776, 777...............................................  SCF BEAUMONT TX 776.                                   
778....................................................  BRYAN TX 778.S                                         
779....................................................  VICTORIA TX 779.S                                      
780-782, 788...........................................  SCF SAN ANTONIO TX 780.                                
783, 784...............................................  SCF CORPUS CHRISTI TX 783.                             
785....................................................  MCALLEN TX 785.S                                       
790, 791...............................................  SCF AMARILLO TX 790.                                   
792....................................................  CHILDRESS TX 792.S                                     
793, 794...............................................  SCF LUBBOCK TX 793.                                    
798, 799, 885..........................................  SCF EL PASO TX 798.                                    
800-804................................................  SCF DENVER CO 800.                                     
805....................................................  LONGMONT CO 805.S                                      
806, 807...............................................  SCF BRIGHTON CO 806.                                   
808, 809...............................................  SCF COLORADO SPGS CO 808.                              
810....................................................  PUEBLO CO 810.S                                        
811....................................................  ALAMOSA CO 811.S                                       
812....................................................  SALIDA CO 812.S                                        
813....................................................  DURANGO CO 813.S                                       
814, 815...............................................  SCF GRAND JUNCTION CO 814.                             
816....................................................  GLENWOOD SPRINGS CO 816.S                              
820....................................................  CHEYENNE WY 820.S                                      
822....................................................  WHEATLAND WY 822.S                                     
823....................................................  RAWLINS WY 823.S                                       
824....................................................  WORLAND WY 824.S                                       
825....................................................  RIVERTON WY 825.S                                      
826....................................................  CASPER WY 826.S                                        
827....................................................  GILLETTE WY 827.S                                      
828....................................................  SHERIDAN WY 828.S                                      

[[Page 10167]]
                                                                                                                
829-831................................................  SCF ROCK SPRINGS WY 829.                               
832, 834...............................................  SCF POCATELLO ID 832.                                  
833....................................................  TWIN FALLS ID 833.S                                    
835, 994...............................................  SCF LEWISTON ID 835.                                   
836, 837, 979..........................................  SCF BOISE ID 836.                                      
838, 990-992...........................................  SCF SPOKANE WA 990.                                    
840-844................................................  SCF SALT LAKE CITY UT 840.                             
845-847................................................  SCF PROVO UT 845.                                      
850, 852, 853..........................................  SCF PHOENIX AZ 852.                                    
855....................................................  GLOBE AZ 855.S                                         
856, 857...............................................  SCF TUCSON AZ 856.                                     
859....................................................  SHOW LOW AZ 859.S                                      
860....................................................  FLAGSTAFF AZ 860.S                                     
863....................................................  PRESCOTT AZ 863.S                                      
864....................................................  KINGMAN AZ 864.S                                       
865, 873...............................................  SCF GALLUP NM 873.                                     
870-872, 875...........................................  SCF ALBUQUERQUE NM 870.                                
874....................................................  FARMINGTON NM 874.S                                    
877....................................................  LAS VEGAS NM 877.S                                     
878....................................................  SOCORRO NM 878.S                                       
879....................................................  TRUTH OR CONS NM 879.S                                 
880....................................................  LAS CRUCES NM 880.S                                    
881....................................................  CLOVIS NM 881.S                                        
882....................................................  ROSWELL NM 882.S                                       
883....................................................  CARRIZOZO NM 883.S                                     
884....................................................  TUCUMCARI NM 884.S                                     
889-891................................................  SCF LAS VEGAS NV 890.                                  
893....................................................  ELY NV 893.S                                           
894, 895, 897, 961.....................................  SCF RENO NV 894.                                       
898....................................................  ELKO NV 898.S                                          
900, 901...............................................  SCF LOS ANGELES CA 900.                                
902-905................................................  SCF INGLEWOOD CA 902.                                  
906-908................................................  SCF LONG BEACH CA 907.                                 
910-912................................................  SCF PASADENA CA 910.                                   
913-916................................................  SCF VAN NUYS CA 913.                                   
917, 918...............................................  SCF INDUSTRY CA 917.                                   
919-921................................................  SCF SAN DIEGO CA 920.                                  
922....................................................  PALM SPRINGS CA 922.S                                  
923-925................................................  SCF SAN BERNARDINO CA 923.                             
926-928................................................  SCF SANTA ANA CA 926.                                  
930....................................................  OXNARD CA 930.S                                        
931, 934...............................................  SCF SANTA BARBARA CA 931.                              
932, 933...............................................  SCF BAKERSFIELD CA 932.                                
935....................................................  MOJAVE CA 935.S                                        
936-938................................................  SCF FRESNO CA 936.                                     
939....................................................  SALINAS CA 939.S                                       
940, 941, 943, 944.....................................  SCF SAN FRANCISCO CA 940.                              
942, 956-958...........................................  SCF SACRAMENTO CA 956.                                 
945-948................................................  SCF OAKLAND CA 945.                                    
949, 954...............................................  SCF NORTH BAY CA 949.                                  
950, 951...............................................  SCF SAN JOSE CA 950.                                   
952, 953...............................................  SCF STOCKTON CA 952.                                   
955....................................................  EUREKA CA 955.S                                        
959....................................................  MARYSVILLE CA 959.S                                    
960....................................................  REDDING CA 960.S                                       
967, 968...............................................  SCF HONOLULU HI 967.                                   
969....................................................  BARRIGADA GU 969.S                                     
970-972, 986...........................................  SCF PORTLAND OR 970.                                   
973....................................................  SALEM OR 973.S                                         
974....................................................  EUGENE OR 974.S                                        
975....................................................  MEDFORD OR 975.S                                       
976....................................................  KLAMATH FALLS OR 976.S                                 
977....................................................  BEND OR 977.S                                          
978....................................................  PENDLETON OR 978.S                                     
980, 981...............................................  SCF SEATTLE WA 980.                                    
982....................................................  EVERETT WA 982.S                                       
983, 984...............................................  SCF TACOMA WA 983.                                     
985....................................................  OLYMPIA WA 985.S                                       
988....................................................  WENATCHEE WA 988.S                                     
989....................................................  YAKIMA WA 989.S                                        
993....................................................  PASCO WA 993.S                                         
995, 996...............................................  SCF ANCHORAGE AK 995.                                  

[[Page 10168]]
                                                                                                                
997....................................................  FAIRBANKS AK 997.S                                     
998....................................................  JUNEAU AK 998.S                                        
999....................................................  KETCHIKAN AK 999.S                                     
----------------------------------------------------------------------------------------------------------------



[Amend title of current L100; remove current L101; no change to L102.]

L100  Priority Mail

[Remove current L201, L202, L203, L701, L703, L704, and L706; add new 
L600.]

L600  Standard Mail

L601  BMCs--Machinable Parcels

[Insert current L705 with no change in text.]

L602  BMCs--DBMC Rates

[Insert current L708 with no change in text.]

L603  ADCs--Irregular Parcels

[Insert current L702 with no changes to the ZIP Code ranges or 
destination information; delete the notes preceding the chart.]

L604  Originating ADCs--Irregular Parcels

[Insert current L707 with no changes to the ZIP Code ranges or 
destination information; replace the notes preceding the chart with the 
following:]
    To determine the correct top (destination) line for labels being 
prepared for containers of mixed ADC mail:
    1. Determine the ZIP Code of the origin post office (i.e., the post 
office where the mail is to be entered and postage paid);
    2. Locate the first three digits of that ZIP Code under 
``Originating ZIP Codes'' in the left column;
    3. Read across the line to the entry under ``Label To'' in the 
right column;
    4. Use this entry as the top line of the label for all mixed ADC 
containers in the mailing.
* * * * *

L800  Automation Rate Mailings

L801  AADCs--Letter-Size Mailings

[Text of current L804 with no change except revise footnote 2 as 
follows:]

    \2\ For Regular Periodicals and other than Nonprofit Standard 
Mail (A) mailings.

L802  BMC/ASF Entry--Periodicals and Standard Mail (A)

[Insert current L805 with no change in text.]

L803  Non-BMC/ASF Entry--Periodicals and Standard Mail (A)

[Insert current L806 with no change in text.]

L897  3-Digit Destinations--Automated Site Mailings (Preferred 
Periodicals and Nonprofit Standard Mail Only)

[Insert current L801 with no change in text.]

L898  SCFs--Automated Site Mailings (Preferred Periodicals and 
Nonprofit Standard Mail Only)

[Insert current L802 with no change in text.]

L899  AADCs--Automated Site Mailings (Preferred Periodicals and 
Nonprofit Standard Mail Only)

[Insert current L803 with no change in text.]

M000  General Preparation Standards

M010  Mailpiece Preparation

[Redesignate current M011 as M012; add new M011, based on M020.1.1, 
M020.1.4, M020.1.5, and M020.1.7, as follows:]

M011  General Preparation Standards

1.0  Basic Preparation Terms and Definitions

1.1  Presort Process

    Presort is the process by which a mailer prepares mail so that it 
is sorted to at least the finest extent required by the standards for 
the rate claimed. Generally, presort is performed sequentially, from 
the lowest (finest) level to the highest level, to those destinations 
specified by standard and is completed at each level before the next 
level is prepared. Not all presort levels are applicable in all 
situations.

1.2  Presort Levels

    Terms used for presort levels are defined as follows:
    a. Firm: all pieces for delivery at the address shown on the top 
piece.
    b. Carrier route: all pieces for delivery to the same city route, 
rural route, highway contract route, post office box section, or 
general delivery unit.
    c. 5-digit: the delivery address on all pieces includes the same 5-
digit ZIP Code.
    d. 3-digit: the ZIP Code in the delivery address on all pieces 
begins with the same three digits (see L002, Column A, or L897, as 
applicable).
    e. Unique 3-digit: the ZIP Code in the delivery address on all 
pieces begins with the same three digits, and that the 3-digit prefix 
is so identified in L002, Column A.
    f. 3-digit scheme: the ZIP Code in the delivery address on all 
pieces begins with one of the 3-digit prefixes processed by the USPS as 
a single scheme (see L003); see 1.3g.
    g. Origin 3-digit(s): the ZIP Code in the delivery address on all 
pieces begins with one of the 3-digit prefixes processed at the SCF in 
whose service area the mail is verified. Subject to standard, a 
separation is required for each such 3-digit area regardless of the 
volume of mail.
    h. SCF: the separation includes pieces for two or more 3-digit 
areas served by the same SCF (see L005 or L898 as applicable), except 
that, where required or permitted by standard, mail for a single 3-
digit area may be prepared in an SCF separation when no mail for other 
3-digit ZIP Code areas is available.
    i. ADC/AADC: all pieces are addressed for delivery in the service 
area of the same ADC or AADC (see L004, L801, or L899, as applicable).
    j. ASF/BMC: all pieces are addressed for delivery in the service 
area of the same ASF or BMC (see L601 or L602, as applicable).
    k. Mixed [BMC, ADC, AADC, etc.]: the pieces are for delivery in the 
service area of more than one BMC, ADC, AADC, etc.
    l. Residual pieces/packages/sacks contain material left over after 
completion of a presort sequence. Residual mail lacks the volume set by 
standard to require or allow package or bundle preparation to a 
particular destination, and usually does not qualify for a presort 
rate. Residual mail is also referred to as nonqualifying or working 
mail.

1.3  Preparation Instructions

    For purposes of preparing mail:
    a. Pieces refers to individually addressed mailpieces. This 
definition also applies when pieces is used in eligibility standards. 
Quantities indicated for optional or required

[[Page 10169]]
sortations always refer to pieces unless specifically excepted.
    b. A full letter tray (1- or 2-foot) is one in which faced, upright 
pieces fill the tray to its capacity whenever practical, but never less 
than at least 3/4 of its length. Each tray must be filled before 
filling of the next tray is begun, with the contents in multiple trays 
relatively balanced. A tray with less mail may be prepared only if 
less-than-full or overflow trays are permitted by the standards for the 
rate claimed. Tray preparation is described in M033.
    c. A less-than-full letter tray is one that contains mail for the 
same destination regardless of quantity or whether a full tray was 
previously prepared for that destination. Less-than-full trays may be 
prepared only if permitted by the standards for the rate claimed.
    d. An overflow letter tray is a less-than-full tray that contains 
all pieces remaining after preparation of full trays for the same 
destination. Overflow trays may be prepared only if permitted by the 
standards for the rate claimed.
    e. A full flat tray is one that is physically full. Although a 
specific minimum volume is required (at least a single stack of mail 
lying flat on the bottom of the tray and filling the tray to the bottom 
of the handholds) before a tray may or must be prepared to the 
corresponding presort destination, trays must be filled with additional 
available pieces, (up to the reasonable capacity of the tray) when 
standards require preparation of full trays.
    f. A full sack is defined in the standards for the class and rate 
claimed.
    g. A 3-digit/scheme sort yields 3-digit scheme trays for those 3-
digit ZIP Code prefixes listed in L003 and 3-digit trays for other 
areas. The 3-digit ZIP Code prefixes in a scheme are treated as a 
single presort destination that is subject to a single minimum tray 
volume. No further separation by 3-digit prefix is required for pieces 
placed in 3-digit scheme trays. Trays prepared for a 3-digit scheme 
destination (i.e., one of the facilities listed in L003) that happen to 
contain pieces for only one of the schemed 3-digit areas are still 
considered 3-digit scheme sorted and are labeled accordingly. The 3-
digit/scheme sort is required for automation rate First-Class, Regular 
Periodicals, and Regular Standard Mail letter-size pieces and may not 
be used by mail at other rates.
    h. An origin 3-digit tray contains all mail (regardless of 
quantity) for a 3-digit ZIP Code area processed by the SCF in whose 
service area the mail is verified. If more than one 3-digit area is 
served, as indicated in L005, a separate tray must be prepared for 
each.
    i. The required at [quantity] instruction (e.g., ``required at 10 
pieces'') means that the particular unit must be prepared for the 
corresponding presort level whenever the specified quantity of mail is 
reached or exceeded. Packages, bundles, and containers may contain more 
than the specified required at quantity up to the applicable maximum 
physical size. Subject to applicable rate eligibility standards, 
smaller quantities may be prepared only if permitted. Where specified 
by standard, required preparation applies only if the mailer chooses to 
qualify for the corresponding rate.
    j. The optional at [quantity] instruction means that the particular 
unit may be prepared for the corresponding presort level whenever the 
specified quantity of mail is reached or exceeded. Packages, bundles, 
or containers may contain more than the specified optional at quantity 
up to the applicable maximum physical size. Smaller quantities may be 
prepared only if permitted by applicable rate eligibility standards. 
Standards for quantities with which preparation is optional are often 
followed by standards for larger quantities with which preparation is 
required.
    k. Entry [facility] (or origin [facility]) refers to the USPS mail 
processing facility (e.g., ``entry BMC'') that serves the post office 
at which the mail is entered by the mailer. If the post office where 
the mail is entered is not the one serving the mailer's location (e.g., 
for plant-verified drop shipment), the post office of entry determines 
the entry facility. Entry SCF includes both single- and multi-3-digit 
SCFs. Entry BMC includes subordinate ASFs unless otherwise specified.
    l. Smaller quantities not permitted or fewer pieces not permitted 
disallows preparation of quantities of mail smaller than that stated as 
the minimum required.
    m. The group pieces instruction means the pieces are to be sorted 
together as if to be packaged but not actually secured into a package. 
Package labels and other package identification methods may be used for 
unsecured groups of pieces as permitted by standard.
    n. A package is a group of addressed pieces secured together as a 
unit. The presort process considers the total number of pieces 
available for the particular presort destination and assembles them 
into groups meeting applicable volume and size standards. When the 
standards applicable to the rate claimed require securing the pieces in 
each group together, the result is a package. The term package does not 
apply to unsecured groups of pieces (e.g., pieces prepared in trays and 
identified by separator cards). Package preparation is described in 
M020.
    o. A bundle is a group of packages secured together as a unit under 
the standards applicable to the rate claimed.

1.4  Mailing

    A mailing is a group of pieces within the same class of mail and 
processing category that may be sorted together under the applicable 
standards. Other specific standards may define whether separate 
mailings may be combined, palletized, reported, or deposited together. 
These types of mail may not be part of the same mailing regardless of 
being in the same class and processing category: automation and 
nonautomation mail (except as permitted by the ``85% rule'' where 
applicable); automation carrier route rate and other automation rate 
mail; any combination of Enhanced Carrier Route, Regular, and/or 
Nonprofit Standard Mail; 3/5 and carrier route Nonprofit Standard Mail.
2.0  Presort Accuracy Validation and Evaluation (Pave)

2.1  Basic Information

    The Presort Accuracy Validation and Evaluation (PAVE) program is a 
process designed in cooperation with the mailing industry to evaluate 
presort software and determine its accuracy in sorting address files 
under DMM standards. PAVE is available only to software and hardware 
manufacturers (i.e., companies that actually develop presort software 
or manufacture presorting equipment). PAVE certification does not 
guarantee acceptance of customer mail prepared with PAVE-validated 
hardware/software.

2.2  Process

    PAVE evaluates the accuracy of presort products by providing test 
address files to vendors. Vendors process the test file(s) through 
their presort software or hardware and return the resulting postage 
statement facsimile(s) and other presort documentation to the USPS 
National Customer Support Center (NCSC) for evaluation of the answers. 
Each test file is evaluated for its accuracy of presort, compliance 
with current DMM standards, accuracy of sack/tray/pallet tag labels, 
and general acceptability of computer-generated facsimiles of postage 
statements and other presort documentation. If the answers are

[[Page 10170]]
accurate, the vendor's presort product is validated for a 12-month 
period or until the end of the current annual period.

2.3  Participation

    For information on participation in PAVE, presort product 
developers may request the PAVE Program Technical Guide from the NCSC 
by calling 1-800-331-5746, extension 651 or 454. Participants may use 
the PAVE form included in that guide to order PAVE test files.

M012  Endorsements and Markings

[In 1.1a, replace ``First-, third-, and fourth-class mail'' with 
``First-Class or Standard Mail''; in 1.1b, replace ``[S]econd-class 
mail'' with ``Periodicals''; revise other text as follows:]
* * * * *
2.0  METHOD

2.1  Placement

    Unless otherwise directed or permitted by standard, placement of 
markings is subject to these standards:
    a. The required rate markings ``First-Class,'' ``Presorted First-
Class,'' ``Bulk Rate,'' ``Nonprofit'' (or approved abbreviations) must 
be printed or produced as part of, or immediately below or to the left 
of, the permit imprint, meter impression or stamp, or precanceled or 
adhesive stamp.
    b. Other required rate markings (e.g., ``AUTO,'' ``Carrier Route 
Presort,'' ``ECRLOT'') may be placed in the locations shown in 2.1a or, 
alternatively, may be placed in the address area on the line 
immediately above the address or, preferably, two lines above the 
address if no other information appears on the line with the marking 
except postal information such as package label and ACS information; in 
the optional endorsement line (under M013); or carrier route 
information line (under M014). Alternatively, the mailer may use an 
MLOCR-driven ink jet printer to apply these markings to the left of the 
DPBC or to apply AUTO or AUTOCR to the left of a corrected date.
    c. Compound markings (e.g, ``AUTOCR,'' ``ECRLOT'') must appear in 
their entirety wherever placed.
* * * * *
[Remove current 2.3 and renumber current 2.4 and 2.5 as 2.3 and 2.4, 
respectively.]
* * * * *

M013  Optional Endorsement Lines

[In the current chart following 1.1, remove the three examples for 
optional SDC, state, and mixed-states packages; in 1.2 and 2.1, replace 
``[T]hird-[C]lass'' with ``Standard Mail (A)''; revise other text as 
follows:]
1.0  Use

1.1  Basic Standards

    Mailers may prepare mailings without applying pressure-sensitive 
package labels or facing slips to the top piece of packages by using a 
specific optional endorsement line (OEL) above the address block or on 
the address label on the top piece of a package as shown below. Use of 
OELs on bundles is subject to the standards for the rate claimed.

------------------------------------------------------------------------
              Package type                  Optional endorsement line   
------------------------------------------------------------------------
Firm...................................  * * * * * * * * * * * * * * * *
                                          * * * * * * * FIRM 12345.     
Carrier Route, (Nonprofit Standard       * * * * * * * * * * * * * * * *
 Mail, Regular and Preferred              * * * * * * * CAR-RT SORT**C- 
 Periodicals).                            001.                          
Carrier Route (Basic, High Density, and                                 
 Saturation Enhanced Carrier Route                                      
 Standard Mail).                                                        
                                         * * * * * * * * * * * * * * * *
                                          * * * * * * * ECRLOT**C-001.  
                                         * * * * * * * * * * * * * * * *
                                          * * * * * * * ECRWSH**C-001.  
                                         * * * * * * * * * * * * * * * *
                                          * * * * * * * ECRWSS**C-001.  
Carrier Route (Automation rate First-    AUTOCR**C-001.                 
 Class and automation rate Enhanced                                     
 Carrier Route and Regular Standard                                     
 Mail).                                                                 
5-Digit................................  * * * * * * * * * * * * * * * *
                                          * * * * * * * 5-DIGIT 12345.  
Optional City (Preferred Periodicals     * * * * * * * * * * * * * * * *
 only).                                   * * * * * * * MIXED CITY 12345
                                          (Use lowest 5-digit ZIP Code  
                                          assigned to that city.)       
3-Digit................................  * * * * * * * * * * * * * * * *
                                          * * * * * * * 3-DIGIT 771.    
SCF....................................  * * * * * * * * * * * * * * * *
                                          * * * * * * * SCF 750 (Use    
                                          correct 3-digit SCF code as   
                                          shown in L002, Column C.)     
ADC....................................  * * * * * * * * * * * * * * * *
                                          * * * * * * * ALL FOR ADC     
                                          [nnn] (Mailer may insert 3-   
                                          digit ZIP Code prefix of ADC.)
Mixed ADC..............................  * * * * * * * * * * * * * * * *
                                          * * * * * * * MIXED ADC [nnn] 
                                          (Mailer may insert 3-digit ZIP
                                          Code prefix of ADC.)          
AADC (Preferred Periodicals and          * * * * * * * * * * * * * * * *
 Nonprofit Standard Mail only).           * * * * * * * ALL FOR AADC    
                                          [nnn] (Mailer may insert 3-   
                                          digit ZIP Code prefix of      
                                          AADC.)                        
Mixed AADC (Preferred Periodicals and    * * * * * * * * * * * * * * * *
 Nonprofit Standard Mail only).           * * * * * * * MIXED AADC [nnn]
                                          (Mailer may insert 3-digit ZIP
                                          Code prefix of AADC.)         
Working (Preferred Periodicals and       * * * * * * * * * * * * * * * *
 Nonprofit Standard Mail only).           * * * * * * * WORKING.        
------------------------------------------------------------------------

* * * * *

1.4  Rate Markings

    At the mailer's option, rate markings required by the standards for 
the rate claimed may be included in the OEL if the OEL appears on each 
piece in the mailing and if it remains a single line with the basic 
package label information (required by 1.1) at the right end (e.g., on 
a carrier route package of Enhanced Carrier Route Saturation Standard 
Mail: ****ECRWSS**C-001; on an automation Regular Standard Mail 3-digit 
package: ****AUTO**3-DIGIT 750).
2.0  Format
* * * * *

2.6  ZIP Code

    Except for carrier route packages, ADC, AADC, mixed ADC, mixed 
AADC, and (as applicable) working residual packages, the optional 
endorsement line must include the appropriate ZIP Code information. 
ADC, AADC, mixed ADC, and mixed AADC OELs may include the 3-digit ZIP 
Code prefix of the destination facility. Mixed ADC bundles

[[Page 10171]]
of bound printed matter must have facing slips as specified in M630. 
Carrier route OELs must show carrier route information under M014.

M014 Carrier Route Information Lines

[Replace current 1.1 and 1.2 with new 1.0 as follows:]
1.0  Basic Information
    Packages for individual carrier routes, rural routes, highway 
contract routes, post office box sections, or general delivery units 
may be prepared without facing slips if prepared with optional 
endorsement lines under M013 or with carrier route information lines 
under 2.0. These standards apply to automation Carrier Route rate 
First-Class, carrier route and Level I/K Periodicals, automation Basic 
Carrier Route rate and Enhanced Carrier Route Standard Mail, and 
carrier route bound printed matter mailings. Carrier route information 
lines may be on all pieces in a carrier route mailing, regardless of 
presort level.
2.0  Format and Content

2.1  Route Information

    Carrier route information consisting of a descriptive prefix (or 
its abbreviation), plus a route number or numeric code, must be on the 
top line of the address, either alone or with other information (e.g., 
addressee, account data). Alternatively, when permitted by standard, 
the carrier route information may appear with the applicable carrier 
route endorsement on the line above or two lines above the address if 
the carrier route rate marking is in the address area (see Exhibit 
2.1).

Address Formats With Carrier Route Information

Exhibit 2.1

**CARRIER ROUTE 011
    RESIDENT, 1300 WATERFORD DR, DISTRICT HEIGHTS MD 20747
**C-011
    RESIDENT, 1300 WATERFORD DR, ENDICOTT NY 13760
**RURAL ROUTE 005
    RESIDENT, 1602 COUNTRY LN, BURKE VA 22015
**R 15005
    POSTAL CUSTOMER
**C 127
    CAR-RT SORT, RESIDENT, 2711 ORDWAY ST NW, WASHINGTON DC 20008
**C011
    AUTOCR, RESIDENT, 1300 WATERFORD DR, DISTRICT HEIGHTS MD 20747

2.2  Descriptive Prefix

    The descriptive prefix ``carrier route,'' ``rural route,'' 
``highway contract route,'' ``post office box section,'' or ``general 
delivery unit'' must be spelled out or abbreviated as shown below.
Carrier Route--C
General Delivery Unit--G
Highway Contract Route--H
Post Office Box Section--B
Rural Route--R

2.3  Route Code

    These conditions apply to route codes:
    a. The one-character descriptive prefix in 2.2 must be followed by 
a 3-digit route or post office box section number.
    b. On Periodicals and Standard Mail pieces bearing a simplified 
address that does not include a ZIP Code, the descriptive prefix in 2.2 
must be followed by a route code that begins with the last two digits 
of the 5-digit ZIP Code and is followed by the route code in 2.3a.
    c. The descriptive prefix and route code required for simplified 
address mailings in 2.3b may also be used on mailings of any class that 
contain a ZIP Code in the address.

[Replace current 2.4, 2.5, and 2.6 with new 2.4 as follows:]

2.4  Other Contents

    Other elements of the carrier route information line include:
    a. The carrier route code must be preceded by at least two 
asterisks (**) or other distinctive nonalphabetic or nonnumeric 
characters.
    b. At least 10 spaces must be reserved for the carrier route code 
if other information is included on the top line.
    c. The carrier route information line may also contain the basic 
markings required by standard for the class of mail and rate claimed if 
all the information remains on a single line with the basic information 
(required by 2.1) at the right end (e.g., on a carrier route package of 
Enhanced Carrier Route Saturation rate mail). No information other than 
postal information appears on that line, and the carrier route 
information line is the top line of the address:

* * * * * * * ECRWSS**C-001
    POSTAL CUSTOMER

M020  Packages and Bundles

1.0  Basic Standards
[Move current 1.1, 1.4, 1.5, and 1.7 to M011; renumber current 1.2, 
1.3, and 1.6 as 1.1, 1.2, and 1.3, respectively; revise renumbered 1.3, 
and add new 1.4 and 1.5 as follows:]
* * * * *

1.3  Labeling

    Unless excepted by standard, each package (other than carrier route 
packages) must be identified with the pressure-sensitive package label 
specified in the standards for the class and rate claimed. On letter-
size and card-size mail, the label must be placed in the lower left 
corner of the address side of the top piece in the package. On flat-
size mail, the label must be placed on the address side of the top 
piece in the package. An optional endorsement line may be used in lieu 
of a pressure-sensitive label, subject to M013.

1.4  Palletization

    Packages and bundles placed on pallets must be able to withstand 
normal transit and handling without breakage or injury to USPS 
employees. Heavy-gauge shrinkwrap over plastic banding, only 
shrinkwrap, or only banding material is acceptable if the package or 
bundle can stay together during normal processing. Packages and bundles 
placed on BMC and mixed BMC pallets must be shrinkwrapped and 
machinable on BMC parcel sorters; machinability is determined by the 
USPS. If used, banding material must be applied at least once around 
the length and once around the girth; wire and metal strapping are 
prohibited.

1.5  Exception to Package Size

    An individual package may be prepared with fewer than the minimum 
number of pieces required by the standards for the rate claimed, 
without loss of rate eligibility, under either of these conditions:
    a. A greater number of pieces would exceed the maximum physical 
size for a package and the total number of pieces for that presort 
destination meets the minimum volume standard (e.g., 30 pieces are 
available to meet a 10-piece minimum, but a package of 8 pieces is 6 
inches thick).
    b. The pieces constitute the ``last package'' for a presort 
destination and previously prepared packages met the applicable minimum 
volume standard (e.g., 505 pieces prepared in ten 50-piece packages and 
one 5-piece package).

1.6  Exception to Package Preparation

    In package-based mailings not entirely of card-size pieces, mail 
need not be prepared in 5-digit packages when it will be placed in a 
full 5-digit tray. Similarly, mail need not be prepared in other levels 
of packages when it will be

[[Page 10172]]
placed in a full tray to the corresponding tray level, and none of the 
mail in that tray would have been more finely sorted if packaged. For 
example, the contents of a full ADC tray need not be packaged if, when 
correctly sorted, it would have all been prepared in ADC packages to 
the same destination; conversely, this exception would not apply if 
some pieces would require preparation in 5-digit or 3-digit packages).

[Revise current 2.0 as follows:]
2.0  Additional Standards--Preferred Periodicals and Nonprofit Standard 
Mail

2.1  Nonautomation Rate Mailings

    Nonautomation rate mailings are subject to these additional 
standards:
    a. Maximum package thickness is 4 inches for letter-size walk-
sequence rate mail and 6 inches for other letter-size mail.
    b. Packages of letter-size mail up to 1 inch thick must be secured 
with appropriate banding applied around the girth. Thicker packages 
must be secured with at least two bands, the first placed around the 
length and the second around the girth.
    c. When a simplified address is used, all pieces for the same post 
office must be prepared in packages of 50 when possible. If packages of 
other quantities are prepared, the actual number of pieces must be 
shown on the facing slip that must be attached to show distribution 
desired (e.g., rural route, city route, post office boxholder).

2.2  Automation Rate Mailings

    Automation rate mailings are subject to these additional standards:
    a. Maximum package thickness is 6 inches for letter-size mail.
    b. Packages must be prepared for mailings consisting entirely of 
card-size pieces, and for mail placed in residual AADC trays (package-
based mailings), mixed AADC trays, or overflow trays (tray-based 
mailings).
    c. Packages must not be prepared in full trays in tray-based 
mailings of larger than card-size pieces except in residual AADC and 
mixed AADC trays and as permitted by standard for oversize pieces.
    d. Packages must be secured with rubber bands, elastic strapping, 
flat plastic strapping, or string placed once around the girth (narrow 
dimension) on packages up to 1 inch thick. Thicker packages must be 
secured twice, with the first rubber band or elastic strap placed 
around the length and the second around the girth. Additional ties may 
be used if none lies along the outer 1 inch of any package edge.
    e. Elastic strapping must have a minimum strength of 15 pounds and 
a minimum of 150% elongation prior to breaking. Minimum tension, when 
applied to the bundle, must be 50% breaking strength. Elastic strapping 
may not be used unless approved by USPS Engineering. A mailer wanting 
to have elastic strapping material tested for acceptability must 
provide 25 packages (five each: 6 inches, 4 inches, 2 inches, 1 inch, 
and 10 pieces) strapped with the tested material. The mailer must send 
the material with a letter of request to USPS Engineering at least 6 
weeks before the planned date of mailing. The mailer is notified in 
writing by the USPS. If the USPS approves the material, that letter 
(showing a unique number) serves as evidence that the material meets 
USPS standards. A copy of the letter must be attached to each postage 
statement provided for mailings that use the approved strapping 
material. The mailer must be able to show when requested that the 
strapping material on a mailing is the same as that approved.
    f. Separator cards:
    (1) May be used instead of packaging (except for card-size pieces) 
to identify groups of pieces in full 3-digit and SCF trays in package-
based mailings.
    (2) May be prepared from any paper or card stock.
    (3) Must be at least 1/4 inch higher than the highest piece in the 
mailing.
    (4) Must be placed in front of the corresponding groups of mail.
    g. Except in package-based mailings under M894 and M895, if groups 
of pieces are identified by separator cards, the required pressure-
sensitive package label must be placed on the separator card or in the 
lower left corner of the first piece behind it. Alternatively, the 
descriptive words ``5-Digit'' or ``3-Digit,'' as appropriate for the 
group, may appear on the separator card. If placed on separator cards, 
the pressure-sensitive label or descriptive words must be at the top of 
each card in a position easily read when the card is in a tray.
    h. In three-tier package-based Barcoded rate mailings under M895, 
pieces in AADC overflow trays must be secured into 5-digit packages in 
the 5-digit tier, and 3-digit packages in the 3-digit tier. These 
packages require no labeling.
    i. In tray-based mailings, pieces in 5-digit overflow trays must be 
secured into and labeled as 5-digit packages. Pieces in 3-digit 
overflow trays and SCF overflow trays must be secured into and labeled 
as 3-digit packages.

[Revise current 3.0 as follows:]
3.0  Additional Standards--First-Class Mail and Other Periodicals and 
Standard Mail (A)

3.1  Cards and Letter-Size Pieces

    Cards and letter-size pieces are subject to these specific 
packaging standards:
    a. The maximum thickness for packages of walk-sequence rate mail is 
4 inches. The maximum thickness for other packages is 6 inches.
    b. Mailings consisting entirely of card-size pieces must always be 
prepared in packages.
    c. Packages must be prepared in all less-than-full trays, for 
nonupgradable Presorted First-Class, nonupgradable Regular Standard 
Mail, and for nonautomation Regular Periodicals.
    d. Separator cards may be used instead of packaging for carrier 
route groups in full 5-digit carrier routes trays of nonautomation 
Enhanced Carrier Route mail. Separator cards must be used instead of 
packaging for carrier route groups in full trays of automation Carrier 
Route First-Class and automation Enhanced Carrier Route Standard Mail. 
Separator cards must be prepared from paper or card stock, must be at 
least 1/4 inch higher than the highest piece in the mailing, and must 
be placed in front of the corresponding groups of mail.
    e. For mailings consisting entirely of card-size pieces and mail in 
less-than-full trays, packages must be secured with rubber bands, 
elastic strapping, flat plastic strapping, or string. (Elastic 
strapping must have a minimum strength of 15 pounds and a minimum of 
150% elongation prior to breaking. Minimum tension, when applied to the 
bundle, must be 50% breaking strength. Elastic strapping may not be 
used unless approved by USPS Engineering. If requested, the mailer must 
be able to show such approval for the strapping material used for a 
mailing.)

3.2  Flat-Size Pieces

    Flat-size pieces are subject to these specific packaging standards:
    a. Though not subject to a specific thickness limit, packages of 
flats must be secure and stable, and are subject to specific weight 
limits if palletized.
    b. Flat-size pieces must always be prepared in packages unless 
excepted by standard.

3.3  All Pieces

    All pieces are subject to these standards:
    a. For mail prepared with a simplified address, all pieces for the 
same post office must be prepared in packages of 50 when possible. If 
packages of other

[[Page 10173]]
quantities are prepared, the actual number of pieces must be shown on 
the facing slip that must be attached to show distribution desired 
(e.g., rural route, city route, post office boxholder).
    b. Packages up to 1 inch thick must be secured with appropriate 
banding placed once around the girth (narrow dimension). Thicker 
packages must be secured with at least two bands, the first placed 
around the length and the second around the girth so that the second 
band crosses over the first. Additional ties may be used if none lies 
along the outer 1 inch of any package edge.
* * * * *
[In 4.2b, replace ``Second-class'' with ``Periodicals.'']

[Remove current 5.0 and 6.0.]

M030  Container Preparation

M031  Labels

[In 1.7 and 4.13, replace ``second-class'' in the heading and text with 
``Periodicals'' and replace ``2C'' with ``PER''; in 2.1a, replace 
``First-, third-, and fourth-class mail'' with ``First-Class and 
Standard Mail'' and replace ``second-class mail'' with ``Periodicals''; 
in 2.1d, replace ``15/16 inch'' and ``31/32 inch'' with ``0.937 inch'' 
and ``0.980 inch,'' respectively; in 3.2a, replace ``First- and third-
class mail'' with ``First-Class and Standard Mail (A)'' and replace 
``second-class mail'' with ``Periodicals''; in 4.2, replace ``second-
class mail'' with ``Periodicals'' and replace ``third- or fourth-class 
mail'' with ``Standard Mail''; in 4.8, add ``(Preferred Periodicals 
only)'' after ``optional city,'' replace ``second-class'' with 
``Periodicals,'' and replace ``third-class'' with ``Standard Mail''; in 
4.12c, replace ``third- and fourth-class'' with ``Standard Mail''; in 
4.14, replace ``second-class mail'' with ``Periodicals'' and ``2C'' 
with ``PER''; in 5.0 (chart), replace ``First- and third-class'' with 
``First-Class and Standard Mail (A),'' replace ``second- or third-
class'' with ``Periodicals or Standard Mail (A),'' replace ``First-, 
second-, and third-class'' with ``First-Class, Periodicals, and 
Standard Mail (A),'' replace ``third-class'' with ``Standard Mail 
(A),'' and replace ``[T]hird- and [F]ourth-[C]lass'' with ``Standard 
Mail''; revise 1.1 as shown below; no other change in text.]
1.0 Sack and Tray Labels

1.1  Basic Standards

    Only sack labels may be used for sacks, only tray labels for trays. 
Machine-printed labels (available from the USPS) ensure legibility. 
Legible hand-printed labels are acceptable. Illegible labels are not 
acceptable.
* * * * *

M032  Barcoded Container Labels

1.0 Barcoded Tray Labels

1.1  Standards

    Effective January 1, 1997, barcoded tray labels are required for 
automation rate mailings of First-Class, Regular Periodicals, and 
Regular and Enhanced Carrier Route Standard Mail letter-size pieces and 
First-Class flat-size pieces. Barcoded tray labels may be used earlier 
and may be used on any other mailing. Mailer-produced barcoded tray 
labels must meet the standards below.

[In 1.2, replace ``First- and third-class mail'' with ``First-Class and 
Standard Mail (A)'' and replace ``second-class mail'' with 
``Periodicals.'']
* * * * *

1.3  Printed Text Lines

* * * * *
    d. The human-readable printed text lines, unless otherwise noted, 
must be printed in easily readable uppercase letters, with no run-on 
letters, in the approximate locations shown in Exhibit 1.3a. The 
printing must have an effective font density of no greater than 12 
characters per inch; font density can be proportional.
* * * * *
    f. The printed destination line must have a minimum character 
height of 0.135 inch and a maximum character density of approximately 
17 characters per inch. The corresponding ZIP Code must have a minimum 
character height of 0.190 inch and a maximum character density of 
approximately 10 characters per inch. The destination line must 
accommodate at least 21 characters in the destination name and 5 
characters in the corresponding ZIP Code. Only the correct 3-digit ZIP 
Code prefix is to be printed when the required labeling for a tray 
includes only a 3-digit ZIP Code prefix for Line 1.
    g. The printed contents line must have a minimum character height 
of 0.135 inch. The contents line must accommodate at least 21 
characters.
    h. The printed numeric barcode line must have a maximum character 
height of 0.085 inch and must accommodate 10 characters.
    i. The printed origin line must have a maximum character height of 
not less than 0.085 inch and must accommodate at least 21 characters.

1.4  Zebra Code

    The zebra code is a series of diagonal lines to the right of the 
barcode that serves solely as a visual indication that a tray contains 
barcoded mail. The code must not appear on tray labels for nonbarcoded 
mail. The diagonal marks must each be from 0.25 to 0.375 inch high, and 
from 0.125 to 0.25 inch wide, separated by blank spaces equal size in 
size to the diagonal marks.

1.5  Barcode

* * * * *
    b. It must be on the left side of the tray label. A clear space of 
at least 0.05 inch must be maintained to the left and the right of the 
barcode for its full height, and of at least 0.070 inch above and below 
the barcode for its full width. The barcode must not extend more than 
2.0 inches to the right from the left edge of the label. The top of the 
barcode must be not less than 0.6 inch from the top of the label. The 
bottom of the barcode must be no more than 1.5 inches from the top of 
the label.
    c. The width of the narrow bars and spaces (``X'' dimension) must 
be between 0.012 inch and 0.016 inch and uniform within the barcode; 
the optimum narrow bar width is 0.015 inch. The tolerance of the width 
of all bars and spaces is 0.004 inch and is not cumulative. 
The maximum irregularity in the edge straightness of any bar element is 
0.3 times the ``X'' dimension.
    d. The height of the barcode must be from 0.65 inch to 0.75 inch.
    e. The wide-to-narrow ratio for barcodes must be between 3 to 1 and 
2.3 to 1 and uniform within the barcode; the optimum ratio is 3 to 1.
    f. When measured at 633 nanometers, bar reflectance must be less 
than 30%; space reflectance must be more than 40%. The bar-to-space 
reflectance difference must be more than 40 percentage points.
    g. There must be a clear area (quiet zone) at each end of the 
barcode not less than 10 times the ``X'' dimension. The clear area must 
meet the space reflectance specification in 1.5f.
* * * * *

Exhibit 1.3c--Contents Identifier Codes

CIN/Mail Type

001  FCM
004  FCM FLTS
006  FCM FLTS NON-BC
008  FCM LTRS BC
013  FCM LTRS BC WKG
017  FCM PRESORT
018  FCM  PRESORT RESID PKS
020  FCM WKG
021  FCM CR-RT
022  FCM CR- RTS
023  FCM MXD CR-RTS
024  FCM RURAL RT
025  FCM HWY CONTRACT RT

[[Page 10174]]

026  FCM BOX SECT
027  FCM GEN DEL UNIT
028  FCM FLTS BARCODED WKG
029  FCM LTRS 5D NON-OCR
030  FCM LTRS 3D NON-OCR
031  FCM LTRS ADC NON-OCR
032  FCM LTRS NON-OCR WKG
033  STD LTRS 5D NON-OCR
034  STD LTRS 3D NON-OCR
035  STD LTRS ADC NON-OCR
036  STD LTRS NON-OCR WKG
040  PRIORITY
041  PRIORITY LTRS
042  PRIORITY FLTS
043  PRIORITY PARCELS
044  PRIORITY DROP SHIP
058  FCM LTRS UPGR WKG
060  EXPRESS MAIL
061  EXPRESS DROP SHIP
063  FCM LTRS CR-RT BC
064  FCM LTRS CR-RTS BC
072  FCM LTRS 5D UPGR
077  FCM LTRS 3D UPGR
083  FCM LTRS AADC UPGR
084  FCM AADC LTRS BC
085  FCM LTRS BC SCHEME
086  FCM IRREG PARCELS
087  APO
088  FPO
089  MEXICO
090  CANADA
091  FOREIGN
092  APO/FPO
100  NEWS
101  NEWS CR-RT
102  NEWS RURAL RT
103  NEWS HWY CONTR RT
104  NEWS BOX SECT
105  NEWS GEN DEL UNIT
106  NEWS CR-RTS
107  NEWS MXD STATES
108  NEWS APO
109  NEWS FPO
111  NEWS LTRS CR-RT
112  NEWS LTRS CR-RT BC
113  NEWS LTRS CR-RTS
114  NEWS LTRS CR-RTS BC
116  NEWS APO/FPO
118  NEWS LTRS BC SCHEME
120  NEWS CITY
121  NEWS ZIP+4 PRESORT
122  NEWS LTRS BC
123  NEWS LTRS BC WKG
124  NEWS FLTS BC
125  NEWS FLTS BC WKG
126  NEWS FLTS CR-RT
127  NEWS FLTS CR-RT BC
128  NEWS FLTS CR-RTS
129  NEWS FLTS CR-RTS BC
130  NEWS CANADA
131  NEWS FOREIGN
132  NEWS MEXICO
200  PER
201  PER CR-RT
202  PER RURAL RT
203  PER HWY CONTR RT
204  PER BOX SECT
205  PER GEN DEL UNIT
206  PER CR-RTS
207  PER MXD STATES
208  PER APO
209  PER FPO
216  PER APO/FPO
218  PER LTRS BC SCHEME
220  PER CITY
221  PER ZIP+4 PRESORT
222  PER LTRS BC
223  PER LTRS BC WKG
224  PER FLTS BC
225  PER FLTS BC WKG
226  PER LTRS CR-RT
227  PER LTRS CR-RT BC
228  PER LTRS CR-RTS
229  PER LTRS CR-RTS BC
230  PER CANADA
231  PER FOREIGN
232  PER MEXICO
233  PER FLTS CR-RT
234  PER FLTS CR-RT BC
235  PER FLTS CR-RTS
236  PER FLTS CR-RTS BC
300  STD FLTS
301  STD FLTS CR-RT
302  STD FLTS RR
303  STD FLTS HC
304  STD FLTS BOX SECT
305  STD FLTS GEN DEL
306  STD FLTS MXD CR-RTS
307  STD FLTS MXD 5-DG PKS
308  STD FLTS MXD STATES
312  STD IRREG
313  STD MACH AND IRREG
314  STD MACH
316  STD FLTS APO/FPO
317  STD FLTS CR-RTS
318  STD FLTS APO
319  STD FLTS FPO
320  STD FLTS CITY
321  STD FLTS IRREG CITY
324  STD FLTS BC
325  STD FLTS BC WKG
329  STD FLTS MEXICO
330  STD FLTS CANADA
331  STD FLTS FOREIGN
332  STD FLTS CR-RT BC
333  STD FLTS CR-RTS BC
400  STD LTRS
401  STD LTRS CR-RT
402  STD LTRS RR
403  STD LTRS HC
404  STD LTRS BOX SECT
405  STD LTRS GEN DEL
406  STD LTRS MXD CR-RTS
407  STD LTRS MXD 5-DG PKS
408  STD LTRS MXD STATES
413  STD LTRS 5D UPGR
414  STD LTRS 3D UPGR
415  STD LTRS AADC UPGR
416  STD LTRS APO/FPO
417  STD LTRS CR-RTS
418  STD LTRS APO
419  STD LTRS FPO
420  STD LTRS CITY
421  STD ZIP+4 PRESORT
422  STD LTRS BC
423  STD LTRS BC WKG
424  STD LTRS UPGR WKG
428  STD LTRS BC SCHEME
429  STD LTRS MEXICO
430  STD LTRS CANADA
431  STD LTRS FOREIGN
432  STD LTRS CR-RT BC
433  STD LTRS CR-RTS BC
440  STD IRREG PARCELS
529  STD MACH MEXICO
530  STD MACH CANADA
531  STD MACH FOREIGN
600  STD IRREG
601  STD IRREG CR-RT
602  STD IRREG CR-RTS
603  STD IRREG MXD STATES
615  STD IRREG MEXICO
620  STD FLTS CITY
621  STD IRREG CITY
630  STD IRREG CANADA
631  STD IRREG FOREIGN
2.0  Barcoded Sack Labels
[Replace current 2.1 and 2.2 with new 2.1 as follows:]

2.1  Standards

    Effective January 1, 1997, barcoded sack labels meeting the 
standards in this section are required for automation rate Regular 
Periodicals and Standard Mail flat-size pieces prepared in sacks. These 
sack labels may be used earlier and may be used for other Periodicals 
and Standard Mail prepared in sacks.

[Renumber current 2.3, 2.4, and 2.5 as 2.2, 2.3, and 2.4, respectively; 
in renumbered 2.4e, replace the reference ``2.5d'' with ``2.4d''; in 
renumbered 2.4f, replace ``200 (2C)'' with ``200 (PER).'']
* * * * *

2.2  Specifications

    a. Sack labels for Standard Mail must be printed on white or manila 
label stock; for Periodicals, on pink stock.
    b. The paper stock must be 70 pounds or heavier.
    c. Each label must be from 0.937 inch to 0.980 inch high.
    d. Each label must be from 3.250 inches to 3.374 inch long.

2.3  Text Lines

* * * * *
    c. The human-readable printed text lines, unless otherwise noted, 
must be printed in easily readable uppercase letters, with no run-on 
letters, in the approximate locations shown in Exhibit 1.3a. The 
printing must have an effective font density of no greater than 15 
characters per inch; font density can be proportional. When the 
information cannot be shortened by acceptable postal abbreviations, it 
may be printed in a compressed font. At least 22 human-readable 
characters for the destination must fit on the label without 
interfering with the quiet zone. The minimum acceptable height for the 
destinating ZIP Code is 0.111 inch. The

[[Page 10175]]
minimum acceptable character height for all other information for Lines 
1, 2, and 3 is 0.083 inch.

2.4  Barcode

* * * * *
    c. The width of the narrow bars and spaces (``X'' dimension) must 
be between 0.012 inch and 0.016 inch and uniform within the barcode; 
the optimum narrow bar size is 0.015 inch. The tolerance of the width 
of all bars and spaces is 0.004 inch and is not cumulative. 
The maximum irregularity in the edge straightness of any bar element is 
0.3 times the ``X'' dimension. The wide-to-narrow ratio must be between 
3 to 1 and 2.3 to 1 and uniform within the barcode; the optimum ratio 
is 3 to 1. The height of the barcode must be at least 0.700 inch.

M033  Sacks and Trays

[Replace current 1.0 with new 1.0 as follows:]
1.0  Basic Standards

1.1  Total Weight

    The total weight of any sack (mail plus sack tare) must not exceed 
70 pounds. The total weight of any MM tray (mail plus tray tare) must 
not exceed 20 pounds; for an EMM tray, 35 pounds.

1.2  Equipment

    Palletization of trays or sacks is subject to M040. Other mailings 
must be prepared in the container appropriate for the processing 
category and rate of the mail:
    a. First-Class, Regular Periodicals, and Regular and Enhanced 
Carrier Route Standard Mail (A) letter-size pieces (including cards) 
must be prepared in USPS letter trays with sleeves. Subject to 
availability, 1-foot or 2-foot regular (MM) or 2-foot extended (EMM) 
letter trays must be used as appropriate for the size and volume of 
pieces. Letter trays may be used for other letter-size mail, subject to 
the applicable preparation standards.
    b. First-Class flat-size pieces must be prepared in USPS flat trays 
with lids.
    c. First-Class parcels weighing less than 11 ounces must be 
prepared in green USPS sacks.
    d. Priority Mail must be prepared in orange USPS sacks.
    e. Periodicals flat-size pieces, machinable and irregular parcels, 
and letter-size pieces not required to be placed in trays must be 
prepared in brown USPS sacks.
    f. Standard Mail flat-size pieces, machinable and irregular parcels 
must be prepared in white canvas USPS sacks. Nonprofit Standard Mail 
letter-size pieces may be prepared in white canvas USPS sacks or trays 
as permitted by standard.

1.3  Tray Sizes

    These standard tray sizes apply to all mail preparation standards:
a. Letter trays: Inside bottom length:
    (1) 2-foot MM and EMM trays: 21 inches.
    (2) 1-foot trays: 10-1/2 inches.
b. Flat trays:
    (1) Inside bottom dimensions: 14-3/4 inches long by 10-3/4 inches 
wide.
    (2) Height: 8 inches to bottom of handhold, 11-1/4 inches to top of 
tray.

1.4  Presort

    Presort, presort levels, and standard preparation terms are defined 
in M011, except for Preferred Periodicals and Nonprofit Standard Mail, 
which are covered in 3.0 and 4.0.

1.5  Sleeving and Strapping

    Each letter tray must be sleeved, and each flat tray must be 
secured with a lid, using USPS-provided sleeves or lids. Except under 
1.6, each letter tray must also be secured with a plastic strap placed 
tightly around the length of the tray without crushing the tray or 
sleeve. Flat trays must be secured by two straps placed tightly around 
the width of the tray (i.e., the shorter dimension).

1.6  Exception

    Letter trays do not require strapping if placed on 5-digit, 3-
digit, and SCF pallets secured with stretchwrap, or if they originate 
and destinate in the same SCF (mail processing plant) service area and 
the processing and distribution manager has given the mailer a written 
waiver.

1.7  Origin SCF/Plant Sacks and Trays

    Except for Nonprofit Standard and Preferred Periodicals mailings, 
after all required carrier route, 5-digit, and 3-digit trays are 
prepared, a 3-digit sack/tray must be prepared to contain any remaining 
mail for each 3-digit area served by the SCF (mail processing plant) 
serving the post office where the mail is verified, and may be prepared 
for each 3-digit area served by the SCF/plant where mail is entered (if 
that is different from the SCF/plant serving where the mail is 
verified, e.g., a PVDS deposit site). In all cases, only one less-than-
full sack/tray may be prepared for each 3-digit area.

[Renumber current 2.0 and 3.0 as 3.0 and 4.0, respectively, and revise 
headings and text as shown below. Add new 2.0 as follows:]
2.0  First-Class, Regular Periodicals, and Regular and Enhanced Carrier 
Route Standard Mail

2.1  Letter Tray Preparation

    Pieces must be prepared to result in the fewest practical number of 
packages (where required) and trays to contain the mail sorted to a 
destination. Letter tray preparation uses terms defined in M011 and is 
subject to these further standards:
    a. Pieces must be ``faced'' (with all addresses in the same 
direction) and placed in trays to maintain their orientation.
    b. Regardless of minimum volumes that may be required per tray, 
each tray prepared must be filled before filling of the next tray is 
begun, with the contents in multiple trays relatively balanced. A tray 
with less mail may be prepared only if permitted by the standards in 
2.1c, 2.1d, and 2.1e and for the rate claimed. Subject to availability, 
2-foot trays must be used whenever available, except that 1-foot trays 
must be used for lesser volume or as less-than-full trays.
    c. Subject to 2.1e and the standards for the rate claimed, pieces 
left over after filling one or more trays for a presort destination are 
packaged and placed in a less-than-full ``overflow'' tray. Where 
overflow trays are permitted, they are required for required presort 
levels and optional for optional levels. Only one overflow tray per 
destination may be prepared in the same mailing.
    d. Where standards do not limit preparation to full trays, or where 
no minimum volume per tray is required, pieces may be packaged and 
placed in a less-than-full tray even though a full tray was not 
previously prepared for that destination. In all circumstances, only 
one less-than-full tray per destination may be prepared in the same 
mailing.
    e. For automation rate and nonautomation rate upgradable mailings 
where packaging is not required, mail remaining after filling all 
possible 2-foot trays must be prepared in a full 1-foot tray before 
being packaged for placement in a less-than-full 1-foot tray (if a 
less-than-full tray is permitted by the standards for the rate 
claimed). For other mailings where packaging is required, mail 
remaining after filling all possible 2-foot trays must be prepared in a 
less-than-full 2-foot tray if it exceeds the capacity of a 1-foot tray.
    f. Subject to availability, standard MM trays must be used for all 
letter-size mail, except  that extended MM (EMM) trays must be used 
when available for letter-size mail more than 4-1/2 inches high or 10-
1/2 inches long. When EMM

[[Page 10176]]
trays are not available, such pieces must be placed in MM trays, angled 
back and/or placed upright perpendicular to the length of the tray in 
row(s) to preserve their orientation.
    g. Each tray must bear the correct tray label.
    h. Each tray must be sleeved and strapped under 1.5 and 1.6.
    i. As a general exception, pieces do not have to be grouped by 3-
digit ZIP Code prefix in AADC trays, or by AADC in mixed AADC trays if 
the mailing is prepared using an MLOCR and standardized documentation 
is submitted.

2.2  Flat Tray Preparation (First-Class Mail Only)

    All flat tray preparation is subject to these standards:
    a. Addresses on all pieces must face upward in the same direction
    b. Pieces must be placed in trays to maintain their orientation. 
Once the required minimum volume is reached to allow or require 
preparation of a tray, additional pieces must be placed in the same 
tray up to its capacity to minimize the number of trays used. When 
possible, pieces must be placed in two stacks to optimize tray use, but 
mail must not overfill the tray to inhibit adequate closure or covering 
of the contents. The total weight of a tray and its contents must not 
exceed 70 pounds.
    c. Each tray must bear the correct tray label.
    d. Each tray must be covered and strapped under 1.5 and 1.6.

2.3  Sack Preparation

    All sack preparation is subject to these standards:
    a. Each sack must bear the correct sack label.
    b. The weight of a sack and its contents must not exceed 70 pounds.
3.0  Nonautomation Rate Preferred Periodicals and Nonprofit Standard 
Mail
[Insert text of current 2.0 and renumber accordingly. In renumbered 
3.1a, replace the reference ``2.1b'' with ``3.1b.'']
4.0  Automation Rate Preferred Periodicals and Nonprofit Standard Mail
[Insert text of current 3.0 and renumber accordingly. In renumbered 
4.1a, replace the reference ``3.4 and 3.5'' with ``4.4 and 4.5''; in 
renumbered 4.3, replace the reference ``3.1b'' with ``4.1b''; in 
renumbered 4.5, replace the reference ``3.4'' with ``4.4''; in 
renumbered 4.5c, replace the reference ``3.5b'' with ``4.5b''; and in 
renumbered 4.6, replace the reference ``3.7'' with ``4.7.'']

M040  Palletization

[Replace current M041, M042, M043, M044, and M048 with new M041 and 
M045, based on a recently concluded separate rulemaking.]

M041  General Pallet Standards

1.0  Physical Characteristics

1.1  Standards

    All pallets presented to the USPS, whether USPS- or mailer-
provided, must meet the standards in 1.2, 1.3, and 1.4. Mail on such 
pallets must meet the standards for the class and rate claimed.

1.2  Construction

    Pallets must be made of high-quality material that can hold loads 
equal to a gross weight of 2,200 pounds. Pallets must measure 48 by 40 
inches and must allow for four-way entry by forklift trucks and two-way 
entry by pallet jacks.

1.3  Securing

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

1.4  Nonconforming Mailers

    The USPS informs mailers or their agents who present palletized 
mailings, including plant-verified drop shipment (PVDS), when their 
pallets fail to meet basic pallet integrity and safety standards. Once 
a mailer is notified and allowed to make changes to improve load 
integrity, if the mailer's methods, or those of the mailer's agent, do 
not work, the mailer is considered nonconforming. A nonconforming 
mailer must meet the specifications for nonconforming mailers for top-
cap use, stacking of pallets, pallet box construction, and maximum 
height/tiers of trays in 2.0 through 5.0, respectively. Mailers will be 
suspended from the pallet program if their pallets continue to fail to 
meet the minimum load integrity levels after being notified and allowed 
to make changes accordingly.
2.0  Top Caps

2.1  Use

    Top caps are used as follows:
    a. Except under 2.1b and 2.1c, all pallets of sacks, letter mail 
trays, parcels, packages or bundles of mail, or pallet boxes must be 
top-capped if the pallets are double- or triple-stacked when presented 
to the USPS for acceptance.
    b. The top pallet need not be top-capped if the strapping or 
banding securing the stacked pallets together neither damages the mail 
on the top pallet nor allows the stack to shift.
    c. Lower pallet(s) containing either parcels or packages or bundles 
of mail need not be top-capped if the top surface of each pallet load 
provides a sturdy, flat surface, parallel to the pallet base, that 
allows for safe and efficient stacking of pallets placed on top and 
prevents sliding of the top pallet(s), damage to the loaded mail, or 
crushing of the load.

2.2  Construction

    Any material may be used as a top cap if it provides a flat, level 
surface horizontal to the base pallet, protects the integrity of the 
mail below it while supporting a loaded pallet above, and allows for 
easy entry of a forklift to remove the upper pallet(s). Flimsy paper or 
fiberboard (e.g., the ends of paper rolls) or similar material is 
inadequate and may not be used as a top cap.

2.3  Securing

    A top cap must be secured to the pallet horizontal to the plane of 
the base pallet, with either stretchwrap or at least two crossed straps 
or bands, so that the cap stays in place to protect the mail and 
maintain the integrity of the pallet load.

2.4  Nonconforming Mailers

    Nonconforming mailers (see 1.4) must use top caps on all pallets of 
sacks, letter mail trays, parcels, or packages or bundles of mail, 
regardless of weight, or on pallets containing pallet boxes no more 
than 60 inches high. Top caps must be approximately 48 by 40 inches and 
meet one of these construction standards:
    a. Five-wood boards, with uniform edges and nine-leg pallet contact 
for stacking.
    b. Fiberboard box-end style, with a minimum 3-inch side and wall 
material of at least double-wall corrugated fiberboard C- and/or B-
flute.
    c. Fiberboard honeycomb covered on both sides, with heavy 
linerboard at least \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.
3.0  Stacking Pallets

3.1  Double- or Triple-Stacking

    Pallets may be double- or triple-stacked if:
    
[[Page 10177]]

    a. The combined gross weight of the stacked pallets (pallets, top 
caps, and mail) does not exceed 2,200 pounds.
    b. The heaviest pallet is on the bottom and the lightest is on the 
top.
    c. The pallets are secured with at least two straps or bands of 
appropriate material to maintain their integrity during transportation 
and handling. Pallets may not be secured together with stretchable or 
shrinkable plastic.
    d. Each pallet is top-capped under 2.0.
    e. The combined height of the stacked pallets and their loads does 
not exceed 84 inches.

3.2  Nonconforming Mailers

    Nonconforming mailers (see 1.4) who stack pallets are subject to 
the conditions in 3.1 with these additional restrictions:
    a. The combined height of any stacked pallets may not exceed 77 
inches; and
    b. Triple-stacking is allowed only for pallets of parcels.
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 M045. (Single-wall corrugated fiberboard may be 
used only for light loads (such as lightweight parcels) that do not 
require transportation by the USPS beyond the entry office.) Pallet 
boxes must protect the mail and maintain the integrity of the pallet 
loads throughout transportation, handling, and processing. The base of 
the boxes must measure approximately 40 by 48 inches.

4.2  Height

    The combined height of the pallet, pallet box, and mail may not 
exceed 77 inches. The contents of the box may not extend above the top 
rim of the box.

4.3  Securing

    Pallet boxes must be secured to the pallet with strapping, banding, 
stretchable plastic, shrinkwrap, or other material that ensures that 
the pallet can be safely unloaded from vehicles, transported, and 
processed as a single unit to the point where the contents are 
distributed with the load intact if:
    a. The pallet and its contents are transported by the USPS from the 
office where the mail is accepted to another postal facility where the 
contents are distributed.
    b. The weight of the mail in the box is not sufficient to hold the 
box in place on the pallet during transportation and processing.

4.4  Nonconforming Mailers

    Nonconforming mailers (see 1.4) may use pallet boxes only if the 
boxes are constructed of triple-wall corrugated fiberboard (C- and/or 
B-flute material) with a maximum height of 77 inches.
5.0  Preparation

5.1  Presort

    Pallet preparation and pallet sortation are subject to the specific 
standards in M045. Pallet sortation is intended to presort the 
palletized portion of a mailing to at least the finest extent required 
for the corresponding class of mail and method of preparation. 
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, 
standard preparation terms and presort levels for pallets are defined 
in M011 and M045. Mailers must prepare all required levels of pallets 
before any working pallet is prepared for a mailing or job.

5.2  Required Preparation

    A pallet must be prepared to a required sortation level when there 
are 500 pounds of Periodicals or Standard Mail packages, sacks, or 
parcels or six layers of Periodicals or Standard Mail (A) letter trays. 
Up to 10 percent of the total pallets in any mailing or job may be 
working pallets labeled to the BMC (Standard Mail) or ADC (Periodicals) 
serving the post office where mailings are accepted into the 
mailstream. The processing and distribution manager of that facility 
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. Working pallets 
contain all mail remaining after required and optional pallets are 
prepared.

5.3  Minimum Load

    In a single mailing, the minimum load per pallet is 250 pounds of 
Periodicals or Standard Mail packages, parcels, and sacks (or three 
tiers/layers of letter trays of Periodicals or Standard Mail (A)), 
except that the processing and distribution manager of the facility 
where a mailing is entered may issue a written authorization to the 
mailer allowing preparation of 5-digit, 3-digit, or SCF pallets 
containing less volume if the mail on those pallets is for that 
facility's service area. In a mailing or mailing job presented for 
acceptance at a single postal facility, one overflow pallet may be 
prepared containing less than 250 pounds or 3 tiers/layers of letter 
trays if the mail is for the service area of the entry facility and the 
pallet is properly labeled under 4.0 based on its contents. No special 
authorization is required.

5.4  Maximum Load

    The maximum weight (mail and pallet) is 2,200 pounds. The maximum 
height of a single pallet (mail and pallet) is 77 inches for packages, 
bundles, parcels, sacks, or pallet boxes or 12 layers of letter trays.

5.5  Mail on Pallets

    Pieces in trays, packages, bundles, and sacks must be prepared 
under the standards for the class of mail and rate claimed. When two or 
more Periodicals or Standard Mail (A) mailings are placed together on 
pallets, the mailer must maintain records for each mailing as required 
by standard. Automation rate and upgradable letter-size pieces must be 
placed on separate 5-digit pallets; neither may be placed on the same 
5-digit pallet as pieces at other rates. Trays must always be placed on 
pallets ``right-side-up'' with heavier, fuller trays at the bottom of 
the load.

5.6  Sacked Mail

    Mail that is not palletized must be prepared under the standards 
for the rate claimed. For Periodicals, mailers must separately sack 
packages of each publication that are not palletized under M045 or that 
are excluded from palletization. Trays that are not palletized must be 
bedloaded. Sacks (including sacks of packages not placed on pallets) 
containing packages remaining after all pallets are prepared may be 
presented with the palletized mail (and reported on the same postage 
statement) if separated from the palletized portion of the mailing.

5.7  Nonconforming Mailers

    For nonconforming mailers (see 1.4) of letter-size mail in trays, 
the combined height of a pallet and its load may not exceed six layers 
of MM or EMM letter trays.
6.0  Copalletized, Combined, or Mixed-Rate Level Mailings

6.1  General

    Palletized mailings (including combined, copalletized, and mixed 
rate level mailings) must be prepared under the standards for the class 
of mail, subject to specific authorization by the RCSC serving the 
mailing post office when required.

6.2  Application

    The mailer (or publisher or agent) must submit a written request to 
the

[[Page 10178]]
RCSC serving the mailing post office to present the types of pallets 
described in 6.1. A separate request is required for each type of 
pallet at each location, but multiple, concurrent applications are 
acceptable. A mailer who cannot meet the minimum palletization 
standards without copalletizing, combining, or commingling mixed rate 
mailings might still qualify if the total copalletized, combined, or 
commingled mailing meets minimum pallet standards. The request must be 
received at least 30 days before the first mailing and include the 
names, addresses, and telephone numbers of the mail owner and of the 
firm or person preparing the mail; a description of the mailing (e.g., 
size, weight, class, rate, volume, mailing frequency, and postage 
payment method); the type of authorization requested; and a sample of 
the applicable documentation under M045.

6.3  Periodicals Publications

    To combine more than one Periodicals publication on pallets, the 
mailer must merge and presort copies of all the publications into 
common packages to achieve the finest presort level for the combined 
mailing. To copalletize different Periodicals flat-size publications, 
the mailer must consolidate on pallets all independently sorted 
packages for each publication to achieve the finest presort level for 
the mailing. Both combining and copalletizing publications must be 
supported by the documentation required in M045. Preferred Periodicals 
may not be combined with Regular Periodicals.

6.4  Standard Mail (A)

    To combine mixed rate level Nonprofit Standard Mail on pallets 
(i.e., 3/5 and Carrier Route), the mailer must be an authorized plant 
load mailer or an authorized plant-verified drop shipment (PVDS) mailer 
with on-site postal verification; must attach to the written request to 
the RCSC either a copy of an approved Form 3815 showing the mailer's 
authority to plant load or the USPS authorization for PVDS with on-site 
verification, as applicable; and must consolidate on pallets all 
independently prepared packages to achieve the finest presort level for 
the mailing. To copalletize different Standard Mail (A) flat-size 
mailings, the mailer must consolidate on pallets all independently 
sorted packages from each mailing to achieve the finest presort level 
for the mailing, and must present computer-generated listings at the 
time of mailing that include a summary list consolidating the 
copalletized multiple mailings and a list of the contents of each 
pallet by ZIP Code and presort level.

6.5  Cancellation

    An authorization may be canceled by the RCSC if the mailer does not 
meet the standards for pallets or the rates claimed or the mailer does 
not submit information on future mailings as requested by the RCSC. 
Mailers may appeal canceled authorizations under G020.

M045  Preparation of Palletized Mailings

1.0  Basic Uses
    Mailers may palletize these types of mail:

    a. Letter-size mail in trays.
    b. Packages or bundles of nonletter-size mail not prepared in 
sacks.
    c. Packages or parcels in sacks.
    d. Machinable or irregular parcels.
    e. Copalletized multiple flat-size mailings, subject to M041.
    f. Combined mailings of machinable parcels (Standard Mail (A) and 
(B)), subject to M073.
    g. Two or more Periodicals publications combined or copalletized, 
subject to M041.
    h. Combined mailings of Nonprofit Standard Mail mixed rate levels, 
subject to M041.
    i. Commingled zone-rated Standard Mail, subject to M630.
2.0  Packages

2.1  Standards

    Package preparation must meet the applicable general standards in 
M010, M020, and M030, except as noted below. The palletized portion of 
a mailing may not include packages sorted to foreign destinations.

2.2  Size--Periodicals

    Package size: Six-piece minimum, 20-pound maximum, except that:
    a. Firm packages may contain as few as two copies of a publication 
and do not have to be consolidated into bundles with other packages to 
the same 5-digit destination. A firm ``package'' may be one piece for 
presort standards (see M210 and M290).
    b. All pieces for the same presort destination must be in one 
package if they weigh less than 10 pounds. Otherwise, packages must 
weigh from 10 to 20 pounds each.
    c. The last package to a presort destination may contain less than 
10 pounds of mail.
    d. All palletized packages of copalletized publications must 
contain at least six pieces.

2.3  Size--Standard Mail (A)

    Package size: 10-piece minimum, 20-pound maximum, except that:
    a. All pieces for the same presort destination must be in one 
package if they weigh less than 10 pounds. Otherwise, packages must 
weigh from 10 to 20 pounds each.
    b. The last package to a presort destination may contain less than 
10 pounds of mail.

2.4  Size--Standard Mail (B)

    Package size: 10-pound or 1,000-cubic-inch minimum (whichever 
occurs first), 40-pound maximum, except that:
    a. All pieces for a presort destination must be in one package if 
they weigh less than 10 pounds. Otherwise, packages must weigh from 10 
to 40 pounds each.
    b. The last package to a presort destination may contain less than 
10 pounds of mail.
    c. Packages must be prepared to carrier route sortations if the 
carrier route bulk bound printed matter rate is claimed. Mail at other 
rates must be sorted to 5-digit, 3-digit, ADC, BMC, and mixed ADC 
destinations, as appropriate.
    d. Smaller size packages of any copies remaining may be prepared to 
the levels noted in 2.4c after all required volume or larger packages 
are prepared. These smaller packages must be properly labeled and 
placed on an appropriate pallet level.

2.5  Labels

    When pressure-sensitive labels are used, a red Label D must appear 
on 5-digit packages if the copies in those packages show carrier route 
information.

2.6  Residual

    After all required and optional packages are prepared, remaining 
copies may be made into a residual package, properly labeled and placed 
on an appropriate pallet level.
3.0  Optional Bundles--Periodicals and Standard Mail (A)

3.1  Standards

    Bundle preparation must meet the applicable general standards in 
M010, M020, and M030, except as noted below. The palletized portion of 
a mailing may not include bundles sorted to foreign destinations.

3.2  Size

    Bundle size: Two-package minimum, 20-pound maximum. Exception: For 
copalletized publications or products, the maximum is 40 pounds.

[[Page 10179]]


3.3  Sortation

    Sortation is in the same sequence as sacks under 4.1.

3.4  Labeling

    Labeling of bundles is not required except for:
    a. Bundles containing packages for sortation levels finer than the 
bundle destination. (These bundles must have a facing slip with Lines 1 
and 2 prepared as required for sacks.)
    b. Bundles of Standard Mail (A) (other than carrier route and 5-
digit bundles) placed on BMC pallets and containing packages for 
sortation levels finer than the bundle destination. These bundles must 
have a facing slip with Lines 1 and 2 prepared as required for sacks. 
The facing slip must completely cover the address and package label on 
the top piece in the bundle.)
4.0  Pallet Presort and Labeling

4.1  Packages, Bundles, Sacks, or Trays

    Preparation sequence and labeling:
    a. 5-digit: required for packages, bundles, and sacks; optional for 
trays; use destination of contents for Line 1.
    b. 3-digit: optional; use L002, Column A, for Line 1.
    c. SCF: required; use L002, Column C, for Line 1.
    d. As appropriate:
    (1) Periodicals: ADC: required; use L004 for Line 1.
    (2) Standard Mail: As appropriate, (a) Destination ASF: allowed and 
required only if DBMC rate is claimed for mail deposited at ASF; use 
L602 for Line 1; or (b) Destination BMC: required; use L601 (L602 if 
DBMC rate claimed) for Line 1. (Sort ADC packages, trays, or sacks, or 
AADC trays to ASF/BMC pallets based on ZIP Code of the package 
destination or shown on Line 1 of the tray or sack label.)
    e. As appropriate:
    (1) Periodicals: mixed ADC: optional; use L004 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).
    (2) Standard Mail: mixed BMC: optional; use L601 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).

4.2  Machinable Parcels--Standard Mail

    Preparation sequence and labeling:
    a. 5-digit: optional, but required for Standard Mail (A) 3/5 rate 
and Standard Mail (B) only; use destination of parcels for Line 1.
    b. ASF: allowed and required only if DBMC rate is claimed for mail 
deposited at ASF; use L602 for Line 1.
    c. Destination BMC: required; use L601 (L602 if DBMC rate claimed) 
for Line 1.
    d. Mixed BMC: optional; use L601 for Line 1, based on ZIP Code of 
entry office (in ``Destination ZIP Codes'' column).

4.3  Presorted Special Standard Mail

    Preparation sequence and labeling:
    a. 5-digit: (5-digit rate only); required; use destination of 
pieces or packages for Line 1.
    b. Destination BMC: (BMC rate only); required; use L601 for Line 1.

4.4  Line 2

    Line 2, class of mail (shown below, as appropriate), processing 
category and mail type (e.g., MACH, LTRS BC), and any processing code 
required by the applicable labeling list under 4.1, 4.2, and 4.3:
    a. Periodicals: PER or NEWS, as appropriate.
    b. Standard Mail (A): STD 3C.
    c. Standard Mail (B): STD 4C.
5.0  Pallets of Packages, Bundles, and Trays of Letter-Size Mail

5.1  Periodicals

    When two or more letter-size publications are part of a combined 
mailing, the mailer must keep records for each mailing (publication) as 
required by standard. Automation rate and nonautomation rate pieces 
must be placed on separate 5-digit pallets. Preferred Periodicals may 
be combined with Regular Periodicals only as permitted by standard. 
Pieces claimed at destination delivery unit (DDU) rates do not require 
separation from pieces claimed at other rates.

5.2  Standard Mail (A)

    Nonprofit mail may be included in the same mailing or palletized on 
the same pallet as other Standard Mail (A) only as permitted by 
standard. Automation rate and upgradable letter-size pieces must be 
placed on separate 5-digit pallets; neither may be placed on the same 
5-digit pallet as pieces at other rates. Pieces claimed at destination 
delivery unit (DDU) rates do not require separation from pieces claimed 
at other rates.

5.3  BMC Pallets

    Packages and bundles placed on BMC pallets must be machinable on 
BMC parcel sorting equipment. Line 2 on pallet labels must reflect the 
processing category of the pieces. A BMC pallet may include pieces that 
are eligible for the DBMC rate and others that are ineligible if the 
mailer provides documentation showing the pieces that qualify for the 
DBMC rate.

5.4  Commingled Zones

    Pieces of Standard Mail (B) for different zones may be commingled 
only under M630.

5.5  Securing Trays

    Trays must be sleeved and strapped under M033, except that 
strapping is not required for trays on 5-digit, 3-digit, and SCF 
pallets or for trays that originate and destinate in the same SCF 
service area.
6.0  Pallets of Sacks
    All sacks remaining after all pallets are prepared may be presented 
with the palletized mailing (on the same postage statement) if the 
sacks are segregated from the palletized portion of the mailing.
7.0  Pallets of Copalletized Periodicals or Standard Mail (A) Flat-Size 
Pieces

7.1  Basic Standards

    Copalletized flat-size mailings must meet the standards in M041 and 
in 1.0 through 5.0, and those below. Any combination of automation rate 
mailings and nonautomation rate mailings is subject to the restrictions 
in 5.0. Packages in a copalletized mailing qualify for the appropriate 
presort level rate, regardless of the pallet level on which they are 
placed.

7.2  Periodicals

    Additional standards apply to Periodicals:
    a. Preferred Periodicals may be combined with Regular Periodicals 
only as permitted by standard.
    b. Documentation meeting the basic standard in P012 must be 
provided with each mailing. Before copalletizing, the mailer must 
obtain the written approval of the RCSC manager. Approval is based on 
the mailer's demonstrated ability to provide documentation meeting 
these standards:
    (1) Documentation by package and by publication and edition showing 
the number of pieces and copies in each package and the per piece 
presort rate claimed for each piece in each package, or a listing by 
pallet showing (by presort level (rate) and destination) the number of 
copies and pieces of each publication and edition. For large volume 
mailing jobs reported on a single listing, the mailer may provide 
abbreviated documentation that shows full package detail for the first 
20 pallets and for every twentieth pallet thereafter if the mailer 
maintains full package detail (by publication and edition code and 
rate)

[[Page 10180]]
for the entire mailing job for 90 days and can provide it to the USPS 
upon request within 3 working days. Abbreviated documentation must 
include the rate summary by publication and edition for each pallet, 
including those for which full detail package listings are not 
reported.
    (2) Documentation showing the number of copies and pieces claimed 
at the intra-SCF rate.
    (3) Documentation showing that packages of all publications and 
editions are sorted to the appropriate finest pallet level in the 
mailing.
    (4) Documentation showing that 5-digit, 3-digit, SCF, and ADC 
pallets are prepared when the applicable minimum volume is developed in 
the copalletized mailing for these destinations.
    (5) A listing showing the destination of pallets in the 
copalletized mailing.
    (6) If the sacked portion of the mailing is presented with the 
copalletized portion, a report by sack showing the number of pieces 
(and copies) of each publication or edition at each presort level 
(rate).

7.3  Standard Mail (A)

    Additional standards apply to Standard Mail (A):
    a. Nonprofit Standard mailings may be copalletized with one another 
but not with mailings at other rates unless permitted by standard.
    b. Nonidentical-weight pieces may be copalletized only if the 
correct postage is affixed to each piece or if otherwise authorized by 
the RCSC.
    c. All pieces in mailings to be copalletized must be subject to the 
minimum per piece rate, or all subject to the per pound rate, unless 
otherwise authorized by the RCSC.
    d. All pieces must have postage paid with permit imprint, or all 
pieces must have postage affixed.
    e. When requested, the mailer must present pallets selected by USPS 
employees for verification.

7.4  Line 2

    Line 2 on pallet labels for copalletized mailings: Class (PER or 
NEWS, or STD, as applicable), FLTS, and contents.

7.5  Postage Statement

    Separate postage statements are required:
    a. For Periodicals, a separate postage statement is required for 
each publication and/or edition that is part of the copalletized 
mailing. Mailers must note on or in an attachment to the postage 
statement the name and issue date of the publications with which each 
publication and/or edition was copalletized.
    b. For Standard Mail (A), a separate postage statement must be 
prepared for each mailing that is part of a single copalletized 
shipment, except that copalletized Regular and Enhanced Carrier Route 
mailings produced as part of the same job may be reported on the same 
postage statement.
8.0  Mixed Rate Levels on Pallets--Nonprofit Standard Mail

8.1  Standards

    Nonprofit mixed rate level mailings must meet the standards in 4.0 
and those below.

8.2  Authorizations

    Mailers must be authorized to commingle either Nonprofit Carrier 
Route, 3/5, and Basic rate mail on pallets or Nonprofit Carrier Route 
and Barcoded rate flats in packages. Mailers do not need authorization 
to commingle mixed rate level mailings when only mailings of barcoded 
flats are sorted on pallets. Nonidentical-weight pieces may be 
commingled only if the correct postage is affixed to each piece or if 
otherwise authorized by the RCSC.

8.3  Carrier Route Information

    Carrier route endorsements may appear only on pieces that qualify 
for that rate, but carrier route codes may appear on each piece in the 
mailing.

8.4  Documentation

    At the time of mailing, the mailer must provide a computer-
generated listing (in ZIP Code sequence and numbered to correspond to 
the pallets) that describes the contents of each pallet. The mailer 
must maintain this information for 90 days after the mailing is 
dispatched. When requested, the mailer must present pallets selected by 
USPS employees for verification by comparison with the listing. The 
listing must show:
    a. Mailer's name and location, owner of the mail, mailing segment, 
and entry post office.
    b. Number of pieces to each carrier route by 5-digit ZIP Code, to 
each 5-digit and 3-digit ZIP Code at the Basic and 3/5 rates, in total 
for these categories for each pallet and for the entire mailing. 
Barcoded rates must be identified, where applicable.

8.5  Additional Pallet Standards

    Pallets must meet these additional preparation standards:
    a. The number relating the computer-generated list to each pallet 
must be placed in the lower right corner of the pallet label in an 
easily read print size.
    b. At the time of mailing, the mailer must show how packages and 
bundles are arranged on the pallets.
    c. When preparing copalletized Nonprofit Carrier Route and Barcoded 
rate mailings of flat-size pieces, mailers must separately group the 
packages at each rate.
    d. When top caps are used, the mailer must write the tare weight of 
the top cap on the pallet label or in another prominent location.
9.0  Palletizing Machinable Parcels

9.1  Standard Mail (A)

    Pieces may be eligible for the 3/5 rate when prepared under 4.2a, 
4.2b, and 4.2c. This eligibility includes pieces correctly sorted under 
4.2b and 4.2c to the service area of the entry ASF/BMC.

9.2  Standard Mail (B)

    Mailers must sack by zone, using the applicable standards, any mail 
that cannot be placed on 5-digit or BMC pallets. Sacks containing mail 
remaining after all pallets are prepared may be presented with the 
palletized mailing (on the same postage statement) if the sacks are 
segregated by zone from the palletized portion of the mailing. Pieces 
for different zones may be commingled only under M630.

9.3  DBMC Rate

    If applicable, a BMC pallet may include pieces that are eligible 
for the DBMC rate and others that are ineligible. The mailer must 
provide documentation showing the pieces that qualify for the DBMC 
rate.

9.4  Top Caps

    When top caps are used, the mailer must write the tare weight of 
the top cap on the pallet label or in another prominent location.

M050  Walk Sequence

1.0  Basic Standards
[In 1.1, replace the reference ``M203 or M303'' with ``M290 or M693.'']
* * * * *
3.0  Delivery Sequence Information
[Replace current 3.1 and 3.2 with new 3.1 and 3.2 as follows:]

3.1  With Simplified Addressing

    Walk-sequence rate pieces prepared with a simplified address must 
be based on delivery stop information obtained within 6 months before 
the date of mailing (or within 90 days before the date of mailing for 
Enhanced Carrier Route Standard Mail), either from the Delivery 
Statistics File or from the postmaster of the destination office.

[[Page 10181]]


3.2  Without Simplified Addressing

[In 3.2a and 3.2b, replace ``quarterly'' with ``bimonthly'' and revise 
the opening paragraph as follows:]

    Walk-sequence rate pieces prepared with other than a simplified 
address must be sequenced using USPS data from one of the following 
sources, issued within 90 days before the date of mailing: * * *
* * * * *
[Add new 3.4 as follows:]

3.4  Line of Travel

    Line-of-travel sequence is an option for mailers who prepare 
carrier route mailings other than high density/125-piece or saturation 
mailings. Line-of-travel sequencing is required for Basic Enhanced 
Carrier Route Standard Mail. Line-of-travel sequence is not an exact 
walk sequence but a sequence of ZIP+4 codes arranged in the order that 
the route is served by a carrier. (First the ZIP+4 groups are 
sequenced, then the addresses within each are identified as being in 
ascending or descending order.) The USPS Line-of-Travel (LOT) product 
provides a list of the ZIP+4 codes each route serves, identifies the 
order in which they are delivered, and provides an indicator specifying 
whether the addresses in each must be sorted in ascending or descending 
order. LOT information must be updated at the same frequency as carrier 
route codes, i.e., within 90 days before the date of mailing.
4.0  Documentation
    [In 4.1, replace ``(second-class)'' with ``(Periodicals)'' and 
``(third-class)'' with ``(Standard Mail).'']
* * * * *
[Replace current 4.2 with new 4.2 as follows:]

4.2  High Density/125-Piece

    For each carrier route to which 125-piece walk-sequence or High 
Density rate mail is addressed, the mailer must document the total 
number of pieces to the route. If there are fewer than 125 pieces for a 
route, the documentation must also show the number of possible 
deliveries on the route.
* * * * *

M070  Mixed Classes

M071  Basic Information

[In 1.1, 1.2, and 1.3, replace ``[T]hird-[C]lass'' with ``Standard Mail 
(A)''; in 1.2 and 1.2a, replace ``second-class'' with ``Periodicals''; 
in 1.2c, replace ``First- or third-class'' with ``First-Class or 
Standard Mail (A)''; and in 1.3, replace ``third- or fourth-class'' 
with ``Standard Mail''; no other change in text.]

M072  Express Mail and Priority Mail Drop Shipment

[In 2.1, replace ``Presorted First-Class and carrier route presort'' 
with ``Presorted and automation''; remove current 2.2 and renumber 
current 2.3 as 2.2; in 3.0 (heading), replace ``Second-Class Mail'' 
with ``Periodicals''; in 4.0 (heading), replace ``Third-Class Mail'' 
with ``Standard Mail (A)''; in 5.0 (heading), replace ``Fourth-Class 
Mail'' with ``Standard Mail (B)'' and replace the reference ``E450'' 
with ``E652''; in 6.2, replace ``Transported by (Priority Mail) 
(Express Mail) with ``TRANSPORTED BY [PRIORITY MAIL][EXPRESS MAIL]'' 
and ``Delivered locally as (class of enclosed mail)'' with ``DELIVERED 
LOCALLY AS [CLASS OF ENCLOSED MAIL]''; no other change in text.]

[Revise the heading of M073 as follows:]

M073  Combined Mailings of Standard Mail Machinable Parcels

[Replace current 1.0 with new 1.0 as follows:]
1.0  Basic Standards

1.1  Description

    Subject to authorization under 2.0, a mailer authorized plant load 
or plant-verified drop shipment privileges may prepare a combined 
mailing of Regular Standard Mail (A) and Standard Mail (B) machinable 
parcels that have been merged and sorted together in sacks (under 3.0) 
or on pallets (under M040) to achieve the finest presort level. The 
combined mailing must meet the standards below and those that apply to 
the rates claimed. Each parcel in a combined mailing is subject to the 
applicable Standard Mail rate, based on the corresponding standards. 
Required volume for bulk or presort rates is based solely on the 
quantity of pieces eligible for each rate at the required presort 
level. Pieces claimed at other rates in the same sack or on the same 
pallet do not count.

1.2  Postage Payment

    Postage for all pieces must be paid with permit imprint at the post 
office serving the mailer's plant under P710, P720, or P730. The 
applicable agreement must include procedures for combined mailings 
approved by the RCSC.

1.3  Documentation

    Separate postage statements must be prepared for the Standard Mail 
(A) and (B) pieces. Within each group, combined forms may be prepared 
where standards and the forms permit. All postage statements must be 
provided at the time of mailing, accompanied by a computer-generated 
listing (in ZIP Code sequence and numbered to correspond to the sacks 
or pallets) that describes the contents of each sack or pallet. The 
mailer must retain this information for 90 days after the mailing is 
dispatched. This listing must show the mailer's name and location, the 
name and owner of each product for which a separate postage statement 
is prepared, and the entry post office. For each product, the listing 
must detail the number of pieces at each rate by 5-digit ZIP Code and 
totals for each pallet or sack and for the entire mailing. Additional 
documentation must be provided for all mailings of nonidentical-weight 
pieces or in which Basic and 3/5 rate pieces are commingled and the 
mailer has not separated the sacks or pallets containing the pieces at 
the respective rates. Such documentation must be in one of these 
formats:
    a. Segmented sequentially by sortation level (e.g., 5-digit, 
destination BMC) and, within each, listing a unique number or Line 1 of 
each sack or pallet label. For each 5-digit or destination ASF/BMC 
entry, the number of pieces at each rate must be shown by 5-digit ZIP 
Code or 3-digit ZIP Code prefix, respectively. Destination ASF/BMC 
sacks or pallets must show a total number of pieces in the sack or on 
the pallet. The entries must be summarized for the whole mailing to 
show total pieces at each rate, total pieces, and total postage (and 
additional postage due, as applicable). The sacks or pallets do not 
have to be presented to the USPS in any particular order.
    b. Segmented sequentially by sortation level and, by 5-digit ZIP 
Code (for 5-digit sacks) or 3-digit ZIP Code prefix (for other sacks or 
pallets), the number of pieces at each rate must be listed. The entries 
must be totaled for the whole mailing to show total pieces at each 
rate, total pieces, and total postage (or additional postage due, as 
applicable). If different amounts of additional postage are due, the 
summary must further detail the number of pieces at each postage amount 
or at each amount of additional postage due. The sacks or pallets must 
be separated by sortation level when presented for acceptance.
2.0  Authorization
* * * * *
[Replace current 2.3 and 2.4 with new 2.3 as follows:]

[[Page 10182]]


2.3  Term

    An authorization to combine Standard Mail (A) and (B) machinable 
parcels expires at the same time as the applicable postage payment 
system authorization and may not be for more than 2 years. A mailer may 
terminate an authorization at any time by written notice to the 
postmaster of the office serving the mailer's location. The USPS may 
terminate an authorization, by written notice to the mailer explaining 
the reasons for termination, if it finds that the mailer does not meet 
the applicable standards.
3.0  Sack Preparation
[Replace current 3.1, 3.2, and 3.3 with new 3.1 and 3.2 as follows:]

3.1  Sack Size, Preparation, and Labeling

    Sack size, preparation sequence, and labeling:
    a. 5-digit: optional, but required for Standard Mail (A) Regular 
and Nonprofit 3/5 rate eligibility (minimum of 10 pieces/20 pounds/
1,000 cubic inches, smaller volume not permitted); use 5-digit ZIP Code 
destination of pieces for Line 1, preceded for military mail by the 
prefixes under M031.
    b. Destination ASF: allowed and required for DBMC rate only 
(minimum of 10 pieces/20 pounds/1,000 cubic inches, smaller volume not 
permitted); use L602 for Line 1.
    c. Destination BMC: required (minimum of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); use L602 if DBMC rate is 
claimed; otherwise, use L601 for Line 1.
    d. Mixed BMC: required (no minimum); use L601 to show entry BMC for 
Line 1.

3.2  Line 2

    Line 2:
    a. 5-digit, ASF, and destination BMC sacks: STD 3C/4C MACH.
    b. Mixed BMC sacks: STD 3C/4C MACH MIXED BMC.
    c. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
M074  Plant Load Mailings
[In 3.3b and 3.3c, replace ``SDC'' with ``ADC''; in 3.3 and 3.7b, 
replace ``[S]econd-[C]lass [M]ail'' with ``Periodicals''; and in 3.4 
and 3.7c, replace ``[T]hird- or [F]ourth-[C]lass [M]ail'' with 
``Standard Mail''; no other change in text.]

M100  First-Class Mail

[Renumber current M101 as M120 with no change in text.]

M120  Priority Mail

* * * * *
[Replace current M102 and M103 with new M130 as follows:]

M130  Presorted First-Class

1.0  Basic Standards

1.1  All Pieces

    Each Presorted First-Class (nonautomation rate) mailing must meet 
the applicable standards in E130 and in M010, M020, and M030. All 
pieces must be in the same processing category, subject to 1.3, and 
must be sorted together and prepared under 2.0, 3.0, 4.0, or 5.0, as 
appropriate; automation rate First-Class Mail must be prepared under 
M810 or M820, as applicable. Letter- and card-size pieces must be 
prepared in letter trays; flat-size pieces must be prepared in flat 
trays; parcels must be prepared in sacks. All pieces must be marked 
``Presorted First-Class.''

1.2  Local Exception

    Postmasters may authorize preparation of small volume mailings in 
nonpostal containers if they consist primarily of packages for local 
ZIP Codes, do not exceed 20 pounds, and do not require postal 
transportation for processing.

1.3  Cards, Letters

    Pieces claimed at card rates and pieces claimed at letter rates are 
each subject to a separate minimum volume criteria whether prepared as 
separate or combined mailings. Either way, card-size and letter-size 
pieces may be presented at the same time and reported on the same 
postage statement.

1.4  Processing Instructions

    If the mailer's preference is that the USPS does not attempt to 
upgrade (automate) letter- or card-size pieces presented at a 
nonautomation rate, trays of such mail may be identified with a facing 
slip or other device that conspicuously bears the words ``DO NOT 
AUTOMATE'' and a tray label on which Line 2 includes ``NON-OCR.''
2.0  Basic Preparation--Letter-Size or Card-Size Pieces

2.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL); labeling optional.
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MS or OEL.

2.2  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. 5-digit: required (full trays); no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.
    b. 3-digit: required (full trays except for origin 3-digit(s)); no 
overflow; use L002, Column A, for Line 1.
    c. ADC: required (full trays); no overflow; use L004 for Line 1.
    d. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the facility serving the 3-digit ZIP Code of 
the entry post office, as shown in L002, Column C.

2.3  Line 2

    Line 2: FCM LTRS NON-OCR and, as applicable:
    a. Mixed ADC trays: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
3.0  Optional Preparation--Upgradable Letter-Size or Card-Size Pieces

3.1  Definition

    Upgradable pieces are those that meet the standards in C810 for 
physical automation compatibility and the standards in C830 for an OCR 
read area and barcode clear zone, for reflectance, and for paper that 
can accept water-based ink. Addresses on upgradable pieces must be 
machine-printed in a nonscript font. Upgradable pieces prepared under 
3.0 are not packaged except for mailings of card-size pieces and pieces 
in less-than-full mixed AADC trays.

3.2  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. 5-digit: optional (full trays); no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.
    b. 3-digit: required (full trays except for origin 3-digit(s)); no 
overflow; use L002, Column A, for Line 1.
    c. AADC: required (full trays); no overflow; group pieces by 3-
digit ZIP Code prefix; use L801 for Line 1.
    d. Mixed AADC: required (no minimum); group pieces by AADC; for 
Line 1, use MXD, followed by the city/

[[Page 10183]]
state/ZIP of the facility serving the 3-digit ZIP Code of the entry 
post office, as shown in L002, Column C.

3.3  Line 2

    Line 2: FCM LTRS UPGR and, as applicable:
    a. Mixed AADC trays: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
4.0  Preparation of Flat-Size Pieces

4.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL).
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MS or OEL.

4.2  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. 5-digit: required (full trays), no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.
    b. 3-digit: required (full trays except for origin 3-digit(s)), no 
overflow; use L002, Column A, for Line 1.
    c. ADC: required (full trays), no overflow; use L004 for Line 1.
    d. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the facility serving the 3-digit ZIP Code of 
the entry post office, as shown in L002, Column C.

4.3  Line 2

    Line 2: FCM FLTS and, on mixed ADC trays, WKG.
5.0  Preparation of Parcels

5.1  Standards

    First-Class parcels weighing 11 ounces or less, except Priority 
Mail, must be prepared under the standards below. All Priority Mail and 
any parcels weighing more than 11 ounces must be prepared under the 
applicable standards in M120.

5.2  Package Preparation

    Packaging is not required for pieces \1/2\ inch thick or thicker if 
they are placed in a sack to the same destination to which they would 
otherwise be packaged (e.g., in a 3-digit sack vs. a 3-digit package). 
Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL).
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MS or OEL.

5.3  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required (10-pound minimum); use 5-digit ZIP Code 
destination of packages (or unpackaged pieces, if applicable) for Line 
1, preceded for military mail by the prefixes under M031.
    b. 3-digit: required (10-pound minimum except for origin 3-
digit(s)); use L002, Column A, for Line 1.
    c. ADC: required (10-pound minimum); use L004 for Line 1.
    d. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the facility serving the 3-digit ZIP Code of 
the entry post office, as shown in L002, Column C.

5.4  Line 2

    Line 2: FCM IRREG and, on mixed ADC sacks, WKG.
6.0  Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation produced by PAVE- or MAC-certified software, or 
standardized documentation meeting the standards in P012. Documentation 
of postage is not required if each piece is of identical weight and the 
pieces are separated by rate when presented for acceptance, or if the 
correct rate is affixed to each piece.
[Revise the heading of M200 as follows:]

M200  Periodicals

[Move M201, M202, M203, M204, and M205 to new M290 and revise; add new 
M210 as follows:]

M210  Regular Periodicals

1.0  Basic Standards

1.1  General Preparation

    All pieces in each nonautomation rate Regular Periodicals mailing 
must be in the same processing category and must be sorted together to 
the finest extent required under 2.0 and 3.0, or 4.0, as appropriate; 
automation rate Regular Periodicals must be prepared under M810 or 
M820, as applicable. Letter-size pieces must be prepared in trays; 
flat-size pieces must be prepared in sacks. Palletization of trays, 
sacks, or packages is as permitted by M040. Postmasters may authorize 
preparation of small volume mailings in nonpostal containers if they 
consist primarily of packages for local ZIP Codes, do not exceed 20 
pounds, and do not require postal transportation for processing.

1.2  Carrier Route and Walk-Sequence

    Preparation for carrier route rates is optional and is subject to 
additional standards. Regular Periodicals for which a walk-sequence 
discount is claimed must be prepared as a carrier route mailing under 
this section and the walk-sequencing standards in M050; pieces prepared 
with a simplified address must also meet the standards in A040.

1.3  Firm Packages

    A firm package is two or more copies for the same address placed in 
one package. If each copy has a delivery address, each may be claimed 
as a separate piece for presort and on the postage statement. The firm 
package may be claimed as one piece for presort and on the postage 
statement. If the copies are unaddressed, the firm package is 
considered one piece. A firm package sorted and claimed as one piece 
must be accompanied by (but must be physically separate from) five 
other pieces packaged to the same destination to satisfy a six-piece 
package requirement when applicable, regardless of the number of copies 
in the firm package.
2.0  Package Preparation

2.1  General

    Packaging preparation is subject to M020 and the specific standards 
below.

2.2  Carrier Route Packages

    Mailers may choose to prepare carrier route packages at a higher 
level of route saturation (e.g., only if there are at least 15 pieces 
per route). Under this option, smaller packages of six or more pieces 
per carrier route not prepared for carrier route rates must be prepared 
and paid for at another applicable rate.

2.3  Regular Periodicals

    In addition to labeling under 2.4b, each package of Regular 
Periodicals walk-sequence mail must be labeled to show that the mail is 
walk sequenced. A facing slip with the phrase ``HIGH

[[Page 10184]]
DENSITY WALK-SEQUENCED CARRIER ROUTE MAIL'' or ``SATURATION WALK-
SEQUENCED CARRIER ROUTE MAIL'' (as applicable) may be placed on the top 
of each package of walk-sequence mail. It may be an address label with 
the required information placed on a sample mailpiece that is the top 
piece in the package, or a separate piece of paper affixed to the top 
of the package. If packages are prepared without facing slips, an 
optional endorsement line or carrier route information line must be 
placed on each piece in the package to provide the equivalent 
information.

2.4  Package Preparation

    Package size, preparation sequence, and labeling:
    a. Firm: optional (two-piece minimum); blue Label F or optional 
endorsement line (OEL).
    b. Carrier route: optional but required for rate eligibility (six-
piece minimum, fewer not permitted); labeling required only if placed 
in a 5-digit carrier routes tray or sack (facing slip, OEL, or CR 
information line).
    c. 5-digit: required (six-piece minimum, fewer not permitted); red 
Label D or OEL.
    d. 3-digit: required (six-piece minimum, fewer not permitted); 
green Label 3 or OEL.
    e. ADC: required (six-piece minimum, fewer not permitted); pink 
Label A or OEL.
    f. Mixed ADC: required (no minimum); tan Label MS or OEL.
3.0  Sack Preparation (Flats)

3.1  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. Carrier route: required for rate eligibility at 24 pieces, 
optional with one six-piece package minimum; use 5-digit ZIP Code 
destination of packages for Line 1, preceded for military mail by the 
prefixes under M031.
    b. 5-digit carrier routes (carrier route packages only): required 
for rate eligibility (no minimum); use 5-digit ZIP Code destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.
    c. 5-digit: required at 24 pieces, optional with one six-piece 
package minimum; use 5-digit ZIP Code destination of packages for Line 
1, preceded for military mail by the prefixes under M031.
    d. 3-digit: required at 24 pieces (no minimum for origin 3-
digit(s)), optional with one six-piece package minimum; use L002, 
Column A, for Line 1.
    e. ADC: required at 24 pieces, optional with one six-piece package 
minimum; use L004 for Line 1.
    f. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004.

3.2  Line 2

    Line 2: PER or NEWS (as applicable), FLTS or IRREG (as applicable), 
and:
    a. Basic Carrier Route sacks: route type and number.
    b. High Density sacks: WSH and route type and number.
    c. Saturation sacks: WSS and route type and number.
    d. 5-digit carrier routes sacks: CR-RTS.
    e. Mixed ADC sacks: WKG.
    f. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
4.0  Tray Preparation (Letter-Size Pieces)

4.1  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. Carrier route: required for rate eligibility at 24 pieces, 
optional with one six-piece package minimum; use 5-digit ZIP Code 
destination of packages for Line 1, preceded for military mail by the 
prefixes under M031.
    b. 5-digit carrier routes (carrier route packages only): required 
for rate eligibility (no minimum); use 5-digit ZIP Code destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.
    c. 5-digit: required at 24 pieces, optional with one six-piece 
package minimum; use 5-digit ZIP Code destination of packages for Line 
1, preceded for military mail by the prefixes under M031.
    d. 3-digit: required at 24 pieces (no minimum for origin 3-
digit(s)), optional with one six-piece package minimum; use L002, 
Column A, for Line 1.
    e. ADC: required at 24 pieces, optional with one six-piece package 
minimum; use L004 for Line 1.
    f. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004.

4.2  Line 2

    Line 2: PER or NEWS (as applicable), LTRS, and:
    a. Basic Carrier Route trays: route type and number.
    b. High Density trays: WSH and route type and number.
    c. Saturation trays: WSS and route type and number.
    d. 5-digit carrier routes trays: CR-RTS.
    e. Mixed ADC trays: WKG.
    f. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
5.0  Bedloaded Bundles (Flats)

5.1  Authorization

    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of flat-size Periodicals in bundles that 
are outside sacks if this preparation benefits the USPS. Generally, 
authorization is approved only when the number of bundles is not more 
than the number of sacks that would otherwise be used in a mailing. The 
mailer or agent must submit an application for each product, showing 
the name of the mailer, the frequency of mailing, the post offices to 
which shipments are to be made, and the approximate numbers of copies 
and bundles to be deposited at each office. The RCSC manager rules on 
the application and informs the applicant in writing. If an 
authorization is approved, the publisher or agent must be prepared to 
provide information for future filings, similar to that required on the 
original application, if requested by the RCSC manager. Authorization 
is approved for a specific period, not to exceed 2 years. Authorization 
to bundle instead of sack may be revoked when it is determined that the 
preparation method no longer benefits the USPS.

5.2  Package Preparation

    Packages must be sorted and labeled under 2.0 and meet the 
applicable basic standards in M020 and these conditions:
    a. Packages must contain at least six pieces but no more than 20 
pounds of mail.
    b. Firm packages may contain as few as two copies of a publication 
and (except under 5.2c) do not have to be consolidated into bundles 
with other packages to the same 5-digit destination.
    c. All pieces must be in one package if they weigh less than 10 
pounds. Ten pounds or more of mail for a destination must be prepared 
in packages weighing from 10 to 20 pounds each.
    d. The last package to a destination may contain less than 10 
pounds of mail.
    e. All palletized packages of copalletized publications must 
contain at least six pieces.

[[Page 10185]]


5.3  Bundle Preparation

    Bundles must be sorted under 3.0 and meet the applicable standards 
in M020 and these conditions:
    a. Bundle size for all required presort levels: required (minimum 
of 20 pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted except for origin 3-digit(s)).
    b. Bundle size for all optional presort levels: optional (minimum 
of 20 pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted except for origin 3-digit(s)).
    c. Bundles other than carrier route and 5-digit bundles must be 
labeled with facing slips that have similar information to that 
required for sack labels. A facing slip is not required on carrier 
route bundles. Five-digit bundles must contain pieces with the correct 
optional endorsement line or have a red Label D.

5.4  Physical Characteristics

    Bundles must be machinable on USPS sack-sorting equipment, unless 
they consist of publications for entry and delivery in the same SCF 
service area. Machinability can be improved by cross-strapping and 
using heavy-gauge shrinkwrap or stretchwrap on each bundle. Bundles 
entered and delivered in the same SCF service area must be securely 
bound to withstand normal handling without breakage or injury to USPS 
employees or damage to mechanized sorting systems. Binding material 
must be applied at least once around both the length and girth. Wire 
and metal strapping are prohibited.
6.0  Combining Multiple Publications or Editions

6.1  Basic Information

    A combined mailing is a mailing in which individually addressed 
copies of two or more Periodicals publications or editions are merged 
into a single mailstream, during production or after finished copies 
are produced, and all copies are sorted together to achieve the finest 
presort possible for the combined mailing. This process is also known 
as comailing. More than one publication, or edition of a publication, 
may be combined to meet the volume standard per tray, sack, or bundle, 
applicable to the presort rate claimed. Each piece must meet all 
applicable standards for the specific rate claimed. Nonprofit and 
Classroom publications may be combined with Regular publications only 
as permitted by standard.

6.2  Postage Statements

    A separate postage statement must be prepared for the postage 
computations for each publication or edition that is part of the 
combined mailing. The name and issue date of the publications with 
which each publication or edition was combined must be noted on, or 
attached to, the postage statements. To report postage for firm 
packages, the per piece postage computation (and nonadvertising 
adjustment, if applicable) for all copies included in firm packages 
must be on the postage statement for the publication (having copies in 
those packages) that contains the higher (or highest) amount of 
advertising.
7.0  Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation meeting the basic standards in P012. Effective January 1, 
1997, postage statements must be supported by documentation produced by 
PAVE-certified software, or standardized documentation meeting the 
standards in P012.

M290  Preferred Periodicals

[Add new M290, based on current M201, M202, M203, and M205; M201.1.0, 
M202.1.0, and M203.1.0 are combined into new M290.1.0; the remainder of 
M201, M202, and M203, and all M205 are revised as M290.2.0, M290.3.0, 
M290.4.0, and M290.5.0, respectively, with subsections renumbered and 
revised accordingly for names of rates and mail classes.]
1.0  Basic Standards

1.1  Presort

    All pieces in a Preferred Periodicals mailing must be sorted. All 
pieces must be in the same processing category unless specifically 
excepted by standard. Except for automation rate mailings, presort must 
at a minimum meet the standards in 2.0. Additional preparation might 
qualify pieces for other presort rates or discounts. Automation rate 
mailings must meet the presort standards in M800.

1.2  Single-Piece

    Subject to the applicable standards, if sorting results in a single 
piece remaining that cannot be included in a package already prepared, 
that single piece may be sorted to a tray, sack, or pallet, as 
appropriate, without being prepared as a package.

1.3  Loose Packing

    District managers may authorize loose packing of faced, unpackaged 
flat-size mail if there are enough pieces to fill a No. 3 sack for the 
same 5-digit ZIP Code destination.

1.4  Firm Packages

    A firm package is two or more copies for the same address placed in 
one package. If each copy has a delivery address, each may be claimed 
as a separate piece for presort and on the postage statement. The firm 
package may be claimed as one piece for presort and on the postage 
statement. If the copies are unaddressed, the firm package is 
considered one piece. A firm package sorted and claimed as one piece 
must be accompanied by (but must be physically separate from) five 
other pieces packaged to the same destination to satisfy a six-piece 
package requirement when applicable, regardless of the number of copies 
in the firm package.

1.5  Nonpostal Containers

    Postmasters may authorize preparation of small volume mailings in 
nonpostal containers if they consist primarily of packages for local 
ZIP Codes, do not exceed 20 pounds, and do not require postal 
transportation for processing.
2.0  Preparation for Level G/J Rates

2.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. Firm: optional with at least two pieces; blue Label F or 
optional endorsement line (OEL).
    b. 5-digit: required at six pieces; smaller packages permitted; red 
Label D or OEL; labeling optional.
    c. City: optional with at least six pieces; yellow Label C or OEL.
    d. 3-digit: required at six pieces; smaller packages permitted; 
green Label 3 or OEL.
    e. SCF: optional at six pieces; smaller packages permitted; green 
Label 3 or OEL.
    f. ADC: required with at least six pieces; pink Label A or OEL.
    g. Mixed ADC: required with no minimum; tan Label MS or OEL.

2.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required at four packages; fewer packages permitted; 
use 5-digit ZIP Code destination of packages for Line 1, preceded for 
military mail by the prefixes under M031.
    b. City: optional with no minimum except as required for rate 
eligibility; use lowest ZIP Code for destination from L001 for Line 1.

[[Page 10186]]

    c. 3-digit: required at four packages; fewer packages permitted; 
use L002, Column A, for Line 1.
    d. SCF: optional with no minimum; use L002, Column C, for Line 1.
    e. ADC: required at four packages; fewer packages permitted; use 
L004 for Line 1.
    f. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004.

2.3  Line 2

    Line 2: PER or NEWS (as applicable), processing category, and:
    a. City sacks: CITY, right-justified under the ZIP Code on Line 1.
    b. Mixed ADC sacks: WKG.
    c. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
3.0  Preparation for Level H Rates

3.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. Firm: optional with at least two pieces, subject to 1.5; blue 
Label F or optional endorsement line (OEL).
    b. 5-digit: required at six pieces; smaller packages not permitted; 
red Label D or OEL; labeling optional.
    c. City: optional with at least six pieces; yellow Label C or OEL.
    d. Unique 3-digit: required at six pieces; smaller packages not 
permitted; green Label 3 or OEL.

3.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required at four packages; fewer packages permitted; 
use 5-digit ZIP Code destination of packages for Line 1, preceded for 
military mail by the prefixes under M031.
    b. City: optional at one six-piece package, as required for rate 
eligibility; use lowest ZIP Code for destination from L001 for Line 1.
    c. Unique 3-digit: required at four packages; fewer packages 
permitted; use L002, Column A, for Line 1.

3.3  Line 2

    Line 2: PER or NEWS (as applicable) and processing category (and, 
on city sacks, CITY right-justified under the ZIP Code on Line 1).
4.0  Preparation for Level I/K Rates

4.1  Trays

    Letter-size pieces may be prepared in letter trays rather than 
sacks. Letter-size pieces prepared in trays must be packaged under 2.0, 
except that packages are not required when there is enough mail to fill 
a tray for the same carrier route. Rate eligibility remains subject to 
the applicable standards.

4.2  Walk-Sequence Mail

    Pieces for which a walk-sequence discount is claimed must be 
prepared as a carrier route mailing under this section and the walk-
sequencing standards in M050. Pieces prepared with a simplified address 
must also meet the corresponding standards. Walk-sequence letter- and 
flat-size pieces must be prepared in packages. In addition to labeling 
under 4.4 and 4.5, each package of walk-sequence mail must be labeled 
to show that the mail is walk sequenced. A facing slip with the phrase 
``WALK-SEQUENCED CARRIER ROUTE MAIL'' may be placed on the top of each 
package of walk-sequence mail. It may be an address label with the 
required information placed on a sample mailpiece that is the top piece 
in the package, or a separate piece of paper affixed to the top of the 
package. If packages are prepared without facing slips, ``WS'' must 
immediately precede the carrier route information on a carrier route 
information line on each piece in the package.

4.3  Package Preparation

    Package size, preparation sequence, and labeling:
    a. Firm: optional with at least two pieces, subject to 1.4; blue 
Label F or optional endorsement line (OEL).
    b. Carrier route: required at six pieces, subject to 4.5; smaller 
packages not permitted; label under 4.4.

4.4  Package Labels

    Carrier route package labels are based on the sack level in which 
placed:
    a. No label is required if the package is placed in a correctly 
labeled carrier route sack.
    b. Packages in 5-digit carrier routes sacks must have a facing slip 
unless the pieces in the package show a carrier route information line.
    c. Optional endorsement lines may be used instead of carrier route 
information lines or facing slips.

4.5  Higher Level

    Mailers may choose to prepare carrier route packages at a higher 
level of route saturation than required in 4.4b (e.g., only when there 
are at least 15 pieces per route). Under this option, smaller packages 
(but with six or more pieces per carrier route) must be claimed at 
another rate and prepared accordingly.

4.6  Tray or Sack Preparation

    Tray preparation is in the same sequence as for sacks; a tray must 
be prepared for a required presort destination when the corresponding 
pieces (or packages of pieces) fill a tray. Minimum volume per tray is 
the same as for a comparable sack. The information placed on tray 
labels is the same as on sack labels. Tray or sack size, preparation 
sequence, and labeling:
    a. Carrier route: optional at one six-piece package minimum, 
required for rate eligibility; use 5-digit ZIP Code destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.
    b. Carrier routes: optional at minimum of one six-piece package 
each for two different routes in the same 5-digit ZIP Code area; 
required for rate eligibility; use 5-digit ZIP Code destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.

4.7  Line 2

    Line 2: PER or NEWS (as applicable), processing category, and:
    a. Walk-sequence carrier route trays or sacks: WS and route type 
and number.
    b. Carrier route trays or sacks: route type and number.
    c. 5-digit carrier routes trays or sacks: CARRIER ROUTES.
5.0  Bedloaded Bundles (Flats)

5.1.  Authorization

    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of flat-size Periodicals in bundles that 
are outside sacks if this preparation must benefit the USPS. Generally, 
authorization is approved only when the number of bundles is not more 
than the number of sacks that would otherwise be used in a mailing. The 
publisher or agent must submit an application for each publication, 
showing the name of the publication; the frequency of mailing, the post 
offices to which shipments are to be made, and the approximate numbers 
of copies and bundles to be deposited at each office. The RCSC manager 
rules on the application and informs the applicant in writing. If an 
authorization is approved, the publisher or agent must be prepared to 
provide information similar to that required on the original 
application for future issues of the publication, if requested by the 
RCSC manager. Authorization is approved for a specific period, not to 
exceed 2 years. Authorization to bundle instead of sack may be revoked 
when it is determined that the preparation method no longer benefits 
the USPS.

[[Page 10187]]


5.2  Package Preparation

    Packages must be sorted and labeled under 2.1, 3.1, and 4.3 and 
meet the applicable basic standards in M020 and these conditions:
    a. Packages must contain at least six pieces but no more than 20 
pounds of mail.
    b. Firm packages may contain as few as two copies of a publication 
and (except under 5.2c) do not have to be consolidated into bundles 
with other packages to the same 5-digit destination.
    c. All pieces must be in one package if they weigh less than 10 
pounds. Ten pounds or more of mail for a destination must be prepared 
in packages weighing from 10 to 20 pounds each.
    d. The last package to a destination may contain less than 10 
pounds of mail.
    e. All palletized packages of copalletized publications must 
contain at least six pieces.

5.3  Bundle Preparation

    Bundles must be sorted under 2.2, 3.2, and 4.6 and meet the 
applicable standards in M020 and these conditions:
    a. Bundle size for all required presort levels: required (minimum 
of 20 pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted).
    b. Bundle size for all optional presort levels: optional (minimum 
of 20 pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted).
    c. Bundles other than carrier route and 5-digit bundles must be 
labeled with facing slips that have similar information to that 
required for sack labels. A facing slip is not required on carrier 
route bundles. Five-digit bundles must contain pieces with the correct 
optional endorsement line or have a red Label D.

5.4  Physical Characteristics

    Bundles must be machinable on USPS sack-sorting equipment, unless 
they consist of publications for entry and delivery in the same SCF 
service area. Machinability can be improved by cross-strapping and 
using heavy-gauge shrinkwrap or stretchwrap on each bundle. Bundles 
entered and delivered in the same SCF service area must be securely 
bound to withstand normal handling without breakage or injury to USPS 
employees or damage to mechanized sorting systems. Binding material 
must be applied at least once around both the length and girth. Wire 
and metal strapping are prohibited.
6.0  Combining Multiple Publications or Editions

6.1  Basic Information

    A combined mailing is a mailing in which individually addressed 
copies of two or more Periodicals publications or editions are merged 
into a single mailstream, during production or after finished copies 
are produced, and all copies are sorted together to achieve the finest 
presort possible for the combined mailing. This process is also known 
as comailing. More than one publication, or edition of a publication, 
may be combined to meet the volume standard per tray, sack, or bundle, 
applicable to the presort rate claimed. Each piece must meet all 
applicable standards for the specific rate claimed. Nonprofit and 
Classroom publications may be combined with Regular publications only 
as permitted by standard.

6.2  Postage Statements

    A separate postage statement must be prepared for the postage 
computations for each publication or edition that is part of the 
combined mailing. The name and issue date of the publications with 
which each publication or edition was combined must be noted on, or 
attached to, the postage statements. To report postage for firm 
packages, the per piece postage computation (and nonadvertising 
adjustment, if applicable) for all copies included in firm packages 
must be on the postage statement for the publication (having copies in 
those packages) that contains the higher (or highest) amount of 
advertising.
7.0  Documentation
    The publisher must be prepared to support information on postage 
statements required with a Periodicals publication (e.g., the number of 
pieces or weight of copies addressed or sorted to specific destinations 
or zones, prepared at specific presort levels, or prepared to qualify 
for a particular rate or discount). Except for mailings containing 
pieces at an automation rate, a destination entry rate, or a walk-
sequence rate, the publisher may meet this standard at the time of 
mailing by separating sacks into groups based on the presort level for 
which their contents qualify. In other situations, the publisher must 
have available documentation meeting the standards in P012 that 
describes the mailing in sufficient detail to allow verification of the 
accompanying mailing's compliance with applicable preparation and 
eligibility standards.

[Remove current M300 and M400; no change to M500.]
* * * * *
[Add new M600, M610, M620, and M630, based on M300 and M400, as 
follows:]

M600  Standard Mail

M610  Single-Piece and Nonautomation Regular Standard Mail (A)

1.0  Single-Piece Rates
    Each piece must be legibly marked ``Standard'' or ``STD.'' Unmarked 
pieces are treated as First-Class Mail and charged postage at the 
applicable First-Class rate.
2.0  Basic Standards--Regular Nonautomation Rates

2.1  All Mailings

    All Regular nonautomation (Basic and 3/5) rate mailings are subject 
to these general standards (automation rate Regular Standard Mail must 
be prepared under M810 or M820 as applicable):
    a. Each mailing must meet the applicable standards in E631 and in 
M010, M020, and M030.
    b. All pieces must be in the same processing category unless 
specifically excepted by standard.
    c. All pieces must be sorted together and prepared under M045 (if 
palletized) or M610.
    d. Sortation determines rate eligibility; pieces not claimed at or 
not eligible for the 3/5 rate must be claimed at the Basic rate.
    e. All pieces must be marked ``Bulk Rate'' or ``Blk. Rt.''
    f. Subject to 2.2, letter-size pieces must be prepared in trays 
and, unless palletized, flat-size pieces must be prepared in sacks.
    g. Postmasters may authorize preparation of small volume mailings 
in nonpostal containers if they consist primarily of packages for local 
ZIP Codes, do not exceed 20 pounds, and do not require postal 
transportation for processing.

2.2  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation produced by PAVE- or MAC-certified software, or 
standardized documentation meeting the standards in P012. Documentation 
of postage is not required if the correct rate is affixed to each piece 
or if each piece is of identical weight and the pieces are separated by 
rate when presented for acceptance.

[[Page 10188]]


2.3  Limited Exception--Standard Mail (A)

    The following exception is applicable until January 1, 1997; after 
that time, preparation will be based solely on the standards for the 
rate claimed and the processing category of the pieces, whether the 
same standards apply to other pieces claimed at other rates and 
produced as part of the same mailing job: When a Standard Mail (A) 
mailing job could, by size, qualify for Regular Standard Mail 
automation rates as either letters or flats, if part of the job is 
prepared as palletized flats at automation rates for flats, the 
remainder may be prepared as palletized flats at Enhanced Carrier Route 
rates and Regular nonletter nonautomation rates if the number of 
Regular nonletter nonautomation rate pieces does not exceed 15% of the 
total number of pieces in the entire mailing job.

2.4  Processing Instructions

    If the mailer's preference is that the USPS does not attempt to 
upgrade (automate) letter- or card-size pieces presented at a 
nonautomation rate, trays of such mail may be identified with a facing 
slip or other device that conspicuously bears the words ``DO NOT 
AUTOMATE'' and a tray label on which Line 2 includes ``NON-OCR.''
3.0  Basic Preparation--Regular Nonautomation Rate Letter-Size Pieces

3.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL); labeling optional.
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MS or OEL.

3.2  Tray Preparation

    Only mail eligible for the 3/5 rate (i.e., 150 or more pieces in 
total for the 3-digit area) can be prepared in 5- and 3-digit trays 
under 3.2a and 3.2b. Tray size, preparation sequence, and labeling:
    a. 5-digit: required (full trays); no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the correct prefixes under M031.
    b. 3-digit: required (no minimum); use L002, Column A, for Line 1.
    c. Origin 3-digit(s): required (no minimum); use L002, Column A, 
for Line 1.
    d. ADC: required (full trays); no overflow; use L004 for Line 1.
    e. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004.

3.4  Line 2

    Line 2: STD LTRS NON-OCR and, as applicable:
    a. Mixed ADC trays: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
4.0  Optional Preparation--Upgradable Regular Nonautomation Rate 
Letter-Size Pieces

4.1  Definition

    Upgradable pieces are those that meet the standards in C810 for 
physical automation compatibility and the standards in C830 for an OCR 
read area and barcode clear zone, for reflectance, and for paper that 
can accept water-based ink. Addresses on upgradable pieces must be 
machine-printed in a nonscript font. Upgradable pieces prepared under 
4.0 are not packaged.

4.2  Tray Preparation

    Only mail eligible for the 3/5 rate (i.e., 150 or more pieces in 
total for the 3-digit area) can be prepared in 5- and 3-digit trays 
under 4.2a and 4.2b. Tray size, preparation sequence, and labeling:
    a. 5-digit: optional (full trays); no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the correct prefixes under M031.
    b. 3-digit: required (no minimum); use L002, Column A, for Line 1.
    c. Origin 3-digit(s): required (no minimum); use L002, Column A, 
for Line 1.
    d. AADC: required (full trays); no overflow; group pieces by 3-
digit ZIP Code prefix; use L801 for Line 1.
    e. Mixed AADC: required (no minimum); group pieces by AADC; for 
Line 1, use L802 (mail entered by the mailer at an ASF or BMC) or L803, 
as appropriate.

4.3  Line 2

    Line 2: STD LTRS UPGR and, as applicable:
    a. Mixed AADC trays: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
5.0  Preparation--Regular Nonautomation Rate Flat-Size Pieces and All 
Irregular Parcels

5.1  Commingling Irregular Parcel Mailings

    RCSCs may authorize the commingling of several permit imprint 
mailings of irregular parcels to achieve a finer presort, if adequate 
means are available to ensure that proper postage is paid. When 
authorizing commingling, RCSCs may waive minimum quantity standards for 
preparation of 5-digit and 3-digit packages if doing so results in a 
finer preparation of at least 50% of the mail.

5.2  Packaging Irregular Parcels

    Irregular parcels are packaged under 5.3, except for:
    a. Irregular parcels 1/2 inch thick or thicker if they are placed 
in a sack to the same destination to which they would otherwise be 
packaged (e.g., in a 3-digit sack vs. a 3-digit package).
    b. Items so large that 10 or fewer pieces fill a sack.
    c. Pieces in a 5-digit sack containing both machinable and 
irregular parcels. (Sacks containing both machinable and irregular 
parcels may not be prepared to other presort levels.)

5.3  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); red 
Label D or optional endorsement line (OEL).
    b. 3-digit: required (10-piece minimum, fewer not permitted); green 
Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MS or OEL.

5.4  Loose Packing

    District managers of customer services may authorize loose packing 
of unpackaged pieces to fill Number 3 sacks if no material in a sack 
would be more finely sorted if packaged. Pieces must be faced and 
packed to remain oriented in transit. The total weight of pieces placed 
in one sack may not exceed 70 pounds. Requests to loose-pack mail must 
be made through the post office of mailing.

5.5  Required Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:

[[Page 10189]]

    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum; those that weigh more must be 
prepared using the 15-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 125-piece 
or 15-pound minimum applies) or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 5.5b (``BOTH'').

5.6  Drop Shipment

    Mailers who use Priority Mail or Express Mail to drop ship Standard 
Mail (A) may prepare sacks containing fewer than 125 pieces or less 
than 15 pounds of mail.

5.7  Sack Preparation

    Sack size (subject to 5.4, 5.5, and 5.6), preparation sequence, and 
labeling:
    a. 5-digit: as applicable:
    (1) Flats or irregular parcels: required (minimum of 125 pieces/15 
pounds, smaller volume not permitted); use 5-digit ZIP Code destination 
of packages for Line 1, preceded for military mail by the prefixes 
under M031.
    (2) Commingled machinable and irregular parcels: required at 10 
pounds, smaller volume permitted; use 5-digit ZIP Code destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.
    b. 3-digit: required (minimum of 125 pieces/15 pounds, smaller 
volume not permitted, except no minimum for origin 3-digit(s)); use 
L002, Column A, for Line 1.
    c. ADC: required (minimum of 125 pieces/15 pounds, smaller volume 
not permitted); for Line 1, use L004 (for flats) or L603 (for irregular 
parcels), as appropriate.
    d. Mixed ADC: required (no minimum); for Line 1, use MXD, followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004 (for flats) or L604 (for irregular 
parcels), as appropriate.

5.8  Line 2

    Line 2: STD and:
    a. 5-digit sacks of machinable and irregular parcels: 3C MACH AND 
IRREG.
    b. Sacks of commingled irregular parcels: 3C COMM IRREG.
    c. All other sacks: FLTS or 3C IRREG (as appropriate).
    d. Mixed ADC sacks: WKG.
    e. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
6.0  Regular Rate Machinable Parcels

6.1  5-Digit Sacks

    Five-digit sacks containing both machinable and irregular parcels 
must be prepared under 5.0. Every possible 5-digit sack must be 
prepared in any mailing including pieces claimed at the 3/5 rate. If 
every possible 5-digit sack is not prepared when there are 10 pounds or 
more of mail for that destination, the 3/5 rate may not be claimed for 
any part of the mailing.

6.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: optional at 10 pounds except under 6.1; use 5-digit ZIP 
Code destination of pieces for Line 1, preceded for military mail by 
the prefixes under M031.
    b. Destination ASF: required for DBMC rate only (10-pound minimum, 
smaller volume not permitted); use L602 for Line 1.
    c. Destination BMC: required (10-pound minimum, smaller volume not 
permitted); use L602 if DBMC rate is claimed; otherwise, use L601 for 
Line 1.
    d. Mixed BMC: required (no minimum); use L601 to show entry BMC for 
Line 1.

6.3  Line 2

    Line 2: STD 3C MACH and:
    a. Mixed BMC sacks: MIXED BMC.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
7.0  Bedloaded Bundles of Regular Nonautomation Rate Flat-Size Pieces

7.1  Authorization

    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of nonautomation rate Regular Standard 
Mail (A) in bundles that are outside sacks if this preparation benefits 
the USPS. Generally, authorization is approved only when the number of 
bundles is not more than the number of sacks that would otherwise be 
used in a mailing. The mailer or agent must submit an application for 
each product, showing the name of the mailer, the frequency of mailing, 
the post offices to which shipments are to be made, and the approximate 
numbers of copies and bundles to be deposited at each office. The RCSC 
manager rules on the application and informs the applicant in writing. 
If an authorization is approved, the mailer or agent must be prepared 
to provide information for future filings, similar to that required on 
the original application, if requested by the RCSC manager. 
Authorization is approved for a specific period, not to exceed 2 years. 
Authorization to bundle instead of sack may be revoked when it is 
determined that the preparation method no longer benefits the USPS.

7.2  Documentation

    Documentation must be provided under 2.2, applying those standards 
to bundles rather than sacks.

7.3  Package Preparation

    Package size for all presort levels: two-piece minimum, 20-pound 
maximum. Preparation sequence and labeling of packages are subject to 
5.0.

7.4  Bundle Preparation

    Bundle size for all presort levels: minimum of two packages/20 
pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted. Preparation sequence is subject to 5.0. Five-digit bundles 
must contain pieces with the correct optional endorsement line or have 
a red Label D. Other bundles must be labeled with facing slips that 
have similar information to that required for sack labels. A facing 
slip is not required on packages too large to be placed in a bundle.

7.5  Physical Characteristics

    Bundles must be machinable by USPS sack-sorting equipment, unless 
they consist of pieces for entry and delivery in the same SCF service 
area. Machinability can be improved by cross-strapping and using heavy-
gauge shrinkwrap or stretchwrap on each bundle. Bundles entered and 
delivered in the same SCF service area must be securely bound to 
withstand normal handling without breakage or injury to USPS employees 
or damage to mechanized sorting systems. Binding material must be 
applied at least once around both the length and girth. Wire and metal 
strapping are prohibited.

[[Page 10190]]


M620  Enhanced Carrier Route Standard Mail (A)

1.0  Basic Standards

1.1  All Mailings

    All nonautomation rate Enhanced Carrier Route mailings are subject 
to these general standards (automation rate Enhanced Carrier Route 
mailings must be prepared under M810):
    a. Each mailing must meet the applicable standards in E632 and in 
M010, M020, and M030.
    b. All pieces must be in the same processing category, except that 
automation Basic Carrier Route rate may not be included in the same 
mailing as other Enhanced Carrier Route mail.
    c. All pieces must be sorted together and prepared under M045 (if 
palletized) or under M620.
    d. Sortation determines rate eligibility; pieces not claimed at or 
not eligible for the High Density or Saturation rates must be claimed 
at the Basic Carrier Route rate.
    e. Subject to M012, all pieces must be marked ``Bulk Rate'' or 
``Blk. Rt.'' In addition, automation Basic Carrier Route, Basic, High 
Density, and Saturation rate pieces must each be marked ``AUTOCR,'' 
``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS,'' respectively, either in the 
correct optional endorsement line under M013 or in the correct carrier 
route information line under M014. Pieces not claimed at the 
corresponding rate must not bear the ``AUTOCR,'' ``ECRLOT,'' 
``ECRWSH,'' or ``ECRWSS'' marking.
    f. Letter-size pieces must be prepared in trays and, unless 
palletized, flat-size pieces must be prepared in sacks.
    g. Postmasters may authorize preparation of small volume mailings 
in nonpostal containers if they consist primarily of packages for local 
ZIP Codes, do not exceed 20 pounds, and do not require postal 
transportation for processing.

1.2  High Density and Saturation Rates

    Pieces claimed at the High Density or Saturation rate must be 
prepared as a carrier route mailing under this section and the walk-
sequencing standards in M050. Pieces prepared with a simplified address 
must also meet the corresponding standards.

1.3  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation produced by PAVE- or MAC-certified software, or 
standardized documentation meeting the standards in P012. Documentation 
of postage is not required if the correct rate is affixed to each 
piece, or if each piece is of identical weight and the pieces are 
separated by rate when presented for acceptance. In addition, at the 
time a mailing is submitted for presort and postage verification, the 
mailer must submit a list of the number of pieces qualifying for each 
Enhanced Carrier Route rate claimed by 5-digit ZIP Code and, within 
each, by carrier route; additional documentation is required under M050 
for the High Density and Saturation rates. After the first mailing, the 
postmaster may authorize the mailer to keep the records and submit them 
on request. The mailer must keep these records for 90 days after the 
mailing date, or until any action pending on the recalculation of 
postage is resolved to USPS satisfaction.

1.4  Limited Exception--Standard Mail (A)

    The following exception is applicable until January 1, 1997; after 
that time, preparation will be based solely on the standards for the 
rate claimed and the processing category of the pieces, whether the 
same standards apply to other pieces claimed at other rates and 
produced as part of the same mailing job: When a Standard Mail (A) 
mailing job could, by size, qualify for Regular Standard Mail 
automation rates as either letters or flats, if part of the job is 
prepared as palletized flats at automation rates for flats, the 
remainder may be prepared as palletized flats at Enhanced Carrier Route 
rates and Regular nonletter nonautomation rates if the number of 
Regular nonletter nonautomation rate pieces does not exceed 15% of the 
total number of pieces in the entire mailing job.
2.0  Package Preparation

2.1  General

    Only carrier route packages are prepared. Packages are not required 
in full carrier route trays.

2.2  Package Preparation

    Package size: carrier route; required (10-piece minimum, fewer not 
permitted). Carrier route package labels are based on the sack or tray 
level in which placed:
    a. No label is required if the package is placed in a correctly 
labeled carrier route tray or sack.
    b. Packages in 5-digit carrier routes trays and sacks must have a 
facing slip unless the pieces in the package show a carrier route 
information line or an optional endorsement line.
3.0  Tray Preparation--Letter-Size Pieces

3.1  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. Carrier route: required full tray; no overflow; use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.
    b. 5-digit carrier routes: required (no minimum); use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.

3.2  Line 2

    Line 2: STD LTRS and:
    a. Basic Carrier Route trays: ECRLOT and route type and number.
    b. High Density trays: ECRWSH and route type and number.
    c. Saturation trays: ECRWSS and route type and number.
    d. 5-digit carrier routes trays: CR-RTS.
4.0  Sack Preparation--Other Pieces

4.1  Required Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:
    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum; those that weigh more must be 
prepared using the 15-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 125-piece 
or 15-pound minimum applies) or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 4.1b (``BOTH'').

4.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. Carrier route: required (minimum of 125 pieces/15 pounds, 
smaller volume not permitted); use 5-digit ZIP Code

[[Page 10191]]
destination of packages for Line 1, preceded for military mail by the 
prefixes under M031.
    b. 5-digit carrier routes: required (no minimum); use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.

4.3  Line 2

    Line 2: STD, FLTS or 3C IRREG (as appropriate), and:
    a. Basic Carrier Route sacks: ECRLOT and route type and number.
    b. High Density sacks: ECRWSH and route type and number.
    c. Saturation sacks: ECRWSS and route type and number.
    d. 5-digit carrier routes sacks: CR-RTS.
5.0  Residual Mail
    Pieces not sorted under 2.0 and either 3.0 or 4.0 must be prepared 
as a separate mailing at Regular Standard Mail rates.
6.0  Bedloaded Bundles

6.1  Authorization

    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of Enhanced Carrier Route Standard Mail 
in bundles that are outside sacks if this preparation benefits the 
USPS. Generally, authorization is approved only when the number of 
bundles is not more than the number of sacks that would otherwise be 
used in a mailing. The mailer or agent must submit an application for 
each product, showing the name of the mailer, the frequency of mailing, 
the post offices to which shipments are to be made, and the approximate 
numbers of copies and bundles to be deposited at each office. The RCSC 
manager rules on the application and informs the applicant in writing. 
If an authorization is approved, the mailer or agent must be prepared 
to provide information for future filings, similar to that required on 
the original application, if requested by the RCSC manager. 
Authorization is approved for a specific period, not to exceed 2 years. 
Authorization to bundle instead of sack may be revoked when it is 
determined that the preparation method no longer benefits the USPS.

6.2  Package Preparation

    Package size for all presort levels: two-piece minimum, 20-pound 
maximum. Preparation sequence and labeling of packages are subject to 
2.0.

6.3  Bundle Preparation

    Bundle size for all presort levels: minimum of two packages/20 
pounds/1,000 cubic inches, 40 pounds maximum; smaller bundles not 
permitted. Preparation sequence is subject to 4.0. Five-digit bundles 
must contain pieces with the correct optional endorsement line or have 
a red Label D. A facing slip is not required on packages too large to 
be placed in a bundle.

6.4  Physical Characteristics

    Bundles must be machinable by USPS sack-sorting equipment, unless 
they consist of pieces for entry and delivery in the same SCF service 
area. Machinability can be improved by cross-strapping and using heavy-
gauge shrinkwrap or stretchwrap on each bundle. Bundles entered and 
delivered in the same SCF service area must be securely bound to 
withstand normal handling without breakage or injury to USPS employees 
or damage to mechanized sorting systems. Binding material must be 
applied at least once around both the length and girth. Wire and metal 
strapping are prohibited.

M630  Standard Mail (B)

1.0  Parcel Post

1.1  Marking

    Pieces mailed at the single-piece parcel post rates do not require 
a marking. Each piece mailed at the bulk parcel post rates must be 
marked ``Bulk Parcel Post'' or ``Bulk PP.'' Each piece mailed at the 
DBMC parcel post rates must be marked ``DBMC Parcel Post'' or ``DBMC 
PP.'' If postage for the piece is paid with a permit imprint and the 
office of mailing is in a different 3-digit ZIP Code area from the post 
office in the return address, the 5-digit ZIP Code or the 3-digit ZIP 
Code prefix of the office of mailing must be included in the indicia or 
incorporated in the required marking (e.g., ``DBMC PP 011'' or ``DBMC 
Parcel Post Mailed From 01101''). Pieces not clearly marked as required 
are treated as single-piece rate parcel post and subject to additional 
postage as necessary.

1.2  Separation

    DBMC and bulk parcel post pieces must be separated by zones when 
presented unless either the correct postage is affixed to each piece or 
the mailing is prepared under 8.0. For mailings prepared in sacks, 
pieces for more than one zone may not be placed in the same sack, and 
sacks must be separated by zone when presented to the USPS.

1.3  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing at other than 
single-piece rates when the full postage is not affixed to each piece.
2.0  Bound Printed Matter

2.1  Basic Standards

    There are no presort, sacking, or labeling standards for single-
piece rate bound printed matter. All bulk rate bound printed matter 
must be prepared under 2.6 and 2.7, except for carrier route bound 
printed matter, machinable pieces, bedloaded bundles, or palletized 
pieces and bundles under 3.0, 6.0, 7.0, and M045, respectively.

2.2  Separation

    Pieces must be separated by zones when presented unless either the 
correct postage is affixed to each piece or the mailing is prepared 
under 8.0. Pieces for more than one zone may not be placed in the same 
bundle or sack, and bundles and sacks must be separated by zone when 
presented to the USPS.

2.3  Marking

    Each piece claimed at single-piece bound printed matter rates must 
be marked ``Bound Printed Matter.'' Each piece claimed at bulk bound 
printed matter rates must be marked ``Bound Printed Matter'' and ``Bulk 
Rate'' or ``Blk. Rt.'' Pieces not clearly marked as required are 
treated as single-piece rate parcel post and subject to additional 
postage as necessary.

2.4  Catalogs

    In addition to marking under 2.3, catalogs must be marked ``CATALOG 
RATE'' or ``CATALOG.'' For this standard, a catalog is bound printed 
matter consisting entirely of advertising. Advertising includes all 
material for the publication of which a valuable consideration is paid, 
accepted, or promised, which calls attention to something for getting 
people to buy it, seek it, sell it, or support it. Public service 
advertisements for which no consideration is paid are not advertising 
for postal purposes. Advertising includes:
    a. Reading matter or other material, for the publication of which 
an advertising rate is charged.
    b. Articles, items, and notices that are reading matter inserted by 
a custom or understanding that textual matter is to be inserted for the 
advertiser or the advertiser's products in the publication where a 
display advertisement appears.
    c. Material in a publication advertising its own services or 
issues, or any other business (or products or services) of its 
publisher, whether display advertising or editorial or reading matter.

[[Page 10192]]


2.5  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing at other than 
single-piece rates when the full postage is not affixed to each piece.

2.6  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required at 10 pieces/20 pounds/1,000 cubic inches; 
smaller volume permitted; use 5-digit ZIP Code destination of packages 
for Line 1, preceded for military mail by the prefixes under M031.
    b. 3-digit: required at 10 pieces/20 pounds/1,000 cubic inches (no 
minimum for origin 3-digit(s)); smaller volume permitted; use L002, 
Column A, for Line 1.
    c. SCF: optional (10 pieces/20 pounds/1,000 cubic inches minimum; 
smaller volume not permitted); use L002, Column C, for Line 1.
    d. ADC: optional (no minimum); for Line 1, use L004 (for flats) or 
L603 (for irregular parcels), as applicable.
    e. Mixed ADC: required (no minimum); for Line 1, use MXD followed 
by the city/state/ZIP of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004 (for flats) or L604 (for irregular 
parcels), as applicable.

2.7  Line 2

    Line 2: STD 4C, FLTS or IRREG (as applicable), and:
    a. Mixed ADC sacks: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
3.0  Carrier Route Bound Printed Matter

3.1  Preparation

    Carrier route rate bound printed matter must be prepared under 3.5, 
3.6, and 3.7, unless prepared as machinable pieces, bedloaded bundles, 
or palletized under 6.0, 7.0, or M045, respectively.

3.2  Marking

    Each piece claimed at carrier route bulk bound printed matter rates 
must be marked ``Bound Printed Matter Blk. Rt.'' and ``Carrier Route 
Presort'' or ``CAR-RT SORT.'' In addition, catalogs must be marked 
``CATALOG RATE'' or ``CATALOG.'' Catalog is defined in 2.4. Residual 
pieces in a carrier route bulk bound printed matter mailing may have 
the ``Carrier Route Presort'' or ``CAR-RT SORT'' marking if the number 
of residual pieces to any single 5-digit ZIP Code area does not exceed 
5% of the total qualifying carrier route rate pieces addressed to that 
5-digit area. The residual pieces must be separated from the qualifying 
pieces when presented to the USPS. Pieces not clearly marked as 
required are treated as single-piece rate parcel post and subject to 
additional postage as necessary.

3.3  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing at other than 
single-piece rates when the full postage is not affixed to each piece. 
Documentation is subject to the general standards in P012. At the time 
a mailing is submitted for presort and postage verification, the mailer 
must submit a list of the number of qualifying and residual pieces for 
each 5-digit ZIP Code and, within each, by carrier route. After the 
first mailing, the postmaster may authorize the mailer to keep the 
records and submit them on request. The mailer must keep these records 
for 90 days after the mailing date, or until any action pending on the 
recalculation of postage is resolved to USPS satisfaction.

3.4  Package Preparation

    Packages must meet the applicable basic standards in M020. Package 
size, preparation sequence, and labeling: Carrier route; required 
(minimum of 10 pieces/20 pounds/1,000 cubic inches, smaller packages 
not permitted); facing slip required unless the pieces in the package 
show a carrier route information line.

3.5  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. Carrier route: optional (minimum of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); use 5-digit destination of 
packages for Line 1, preceded for military mail by the prefixes under 
M031.
    b. 5-digit carrier routes: required (no minimum); use 5-digit ZIP 
Code destination of packages for Line 1, preceded for military mail by 
the prefixes under M031.

3.6  Line 2

    Line 2: STD 4C, FLTS or IRREG (as applicable), and:
    a. Carrier route sacks: route type and number.
    b. 5-digit carrier routes sacks: CR-RTS.

3.7  Residual Pieces

    Residual mail not sorted under 3.5, 3.6, and 3.7 may be prepared in 
packages of fewer than 10 pieces each for individual carrier routes. 
Residual pieces must be sacked under 2.0. Residual pieces may be 
included in a carrier route presort rate mailing with the ``Carrier 
Route Presort'' or ``CAR-RT SORT'' marking if postage is paid at the 
applicable bulk bound printed matter rate. These pieces must be 
separated from the qualifying carrier route rate pieces when presented 
to the USPS. The number of residual pieces endorsed ``Carrier Route 
Presort'' or ``CAR-RT SORT'' addressed to any single 5-digit ZIP Code 
area must not exceed 5% of the total qualifying carrier route pieces 
addressed to that 5-digit area.
4.0  Special Standard Mail

4.1 Basic Standards

    There are no preparation standards for single-piece Special 
Standard Mail. Presorted Special Standard Mail must be prepared under 
4.4, 4.5, and 4.6, unless prepared as machinable pieces, bedloaded 
bundles, or palletized, under 6.0, 7.0, or M045, respectively. Mailings 
of nonmachinable (outside) pieces eligible for the presort rates must 
be prepared to preserve the required presort as instructed by the 
mailing office postmaster.

4.2 Marking

    Each piece claimed at Special Standard Mail single-piece rates must 
be marked ``Special Standard Mail.'' Each piece claimed at Presorted 
Special Standard Mail rates must be marked ``Presorted Special Standard 
Mail.'' Pieces not clearly marked as required are treated as single-
piece parcel post and subject to additional postage as necessary.

4.3 Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing at other than 
single-piece rates when the full postage is not affixed to each piece.

4.4  Sack or Bundle Preparation (5-Digit Rate)

    Sack or bundle size, preparation sequence, and labeling: 5-digit 
(only); required (minimum of eight pieces/20 pounds/1,000 cubic inches, 
smaller volume not permitted); 20-pound maximum for bundles; no label 
required on bundles; on sacks, use 5-digit ZIP Code destination of 
pieces for Line 1, preceded for military mail by the prefixes under 
M031.

4.5  Sack Preparation (BMC Rate)

    Sack size, preparation sequence, and labeling: destination BMC 
(only); required (minimum of four pieces/20

[[Page 10193]]
pounds/1,000 cubic inches, smaller volume not permitted); use L601 for 
Line 1.

4.6  Line 2

    Line 2: STD 4C and processing category. As required by the labeling 
list, Line 2 processing code must be right-justified under the ZIP Code 
on Line 1.
5.0  Library Mail

5.1  Basic Standards

    There are no preparation standards for single-piece Library Mail, 
except that, if 1,000 or more identical-weight Library Mail pieces are 
mailed during a single day, they must be sorted and sacked under 2.0 
unless prepared as machinable parcels or palletized subject to 6.0 or 
M045, respectively.

5.2  Marking

    Each piece of Library Mail must be marked ``Library Rate'' or 
``Library Mail.'' Pieces not clearly marked as required are treated as 
single-piece parcel post and subject to additional postage as 
necessary.

5.3  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing when the full 
postage is not affixed to each piece.
6.0  Machinable Parcels

6.1  Basic Standards

    All Standard Mail (B) machinable parcels must be prepared in sacks 
under 6.2 or palletized under M045. Parcel post or bound printed matter 
pieces must be separated by zones when presented to the USPS unless 
either the correct postage is affixed to each piece or the mailing is 
prepared under 8.0. Pieces for more than one zone may not be placed in 
the same bundle or sack, and bundles and sacks must be separated by 
zone when presented to the USPS.

6.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required (minimum of 10 pieces/20 pounds/1,000 cubic 
inches, smaller volume not permitted); use 5-digit ZIP Code destination 
of pieces for Line 1, preceded for military mail by the prefixes under 
M031.
    b. ASF: allowed and required only if DBMC rate is claimed for mail 
deposited at ASF (minimum of 10 pieces/20 pounds/1,000 cubic inches, 
smaller volume not permitted); use L602 for Line 1.
    c. Destination BMC: required (minimim of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); use L601 (L602 if DBMC 
rate claimed) for Line 1.
    d. Mixed BMC: required (no minimum); use L601 to show entry BMC for 
Line 1.

6.3  Line 2

    Line 2: STD 4C MACH and:
    a. Mixed BMC sacks: MIXED BMC.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
7.0  Bound Printed Matter as Bedloaded Bundles

7.1  Authorization

    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of bound printed matter in bundles that 
are outside sacks if this preparation benefits the USPS. Generally, 
authorization is approved only when the number of bundles is not more 
than the number of sacks that would otherwise be used in a mailing. The 
mailer or agent must submit an application for each product, showing 
the name of the mailer, the frequency of mailing, the post offices to 
which shipments are to be made, and the approximate numbers of copies 
and bundles to be deposited at each office. The RCSC manager rules on 
the application and informs the applicant in writing. If an 
authorization is approved, the mailer or agent must be prepared to 
provide information for future filings, similar to that required on the 
original application, if requested by the RCSC manager. Authorization 
is approved for a specific period, not to exceed 2 years. Authorization 
to bundle instead of sack may be revoked when it is determined that the 
preparation method no longer benefits the USPS.

7.2  Separation

    Unless prepared under 8.0, pieces for more than one zone may not be 
placed in the same package or bundle, and packages and bundles must be 
separated by zone when presented to the USPS.

7.3  Package Preparation

    Packages must meet the applicable basic standards in M020. Package 
size: two-piece minimum, 20-pound maximum. Sort sequence and labeling 
of packages are subject to 2.0 or 3.0, as applicable for the rate 
claimed.

7.4  Bundle Preparation

    Bundles must meet the applicable basic standards in M020. Bundles 
must be machinable by USPS sack-sorting equipment, unless they consist 
of pieces for entry and delivery in the same SCF service area. 
Machinability can be improved by cross-strapping and using heavy-gauge 
shrinkwrap or stretchwrap on each bundle. Bundles entered and delivered 
in the same SCF service area must be securely bound to withstand normal 
handling without breakage or injury to USPS employees or damage to 
mechanized sorting systems. Binding material must be applied at least 
once around both the length and girth. Wire and metal strapping are 
prohibited.

7.5  Bundle Preparation

    Bundle size, preparation sequence, and labeling: For all presort 
levels: minimum of two packages/20 pounds/1,000 cubic inches, 40 pounds 
maximum; smaller bundles not permitted. Sort sequence is same as sacks 
under 2.0 or 3.0, as applicable for the rate claimed. Bundles other 
than carrier route and 5-digit bundles must be labeled with facing 
slips that have similar information to that required for sack labels. A 
facing slip is not required on carrier route bundles. The 5-digit 
bundles must contain pieces with the correct optional endorsement line 
or have a red Label D. Packages too large to be placed in a bundle do 
not require a facing slip. Optional endorsement lines may be used 
instead of facing slips on other than mixed states bundles, subject to 
M013.

8.0  Commingling Zones

    Zoned Standard Mail pieces need not be separated by zones when 
presented other than as individual pieces or with full correct postage 
affixed to each piece, subject to this section. Nonidentical-weight 
pieces not bearing the full correct postage may not be commingled 
unless authorized by the RCSC manager serving the office of mailing. 
These provisions also apply to bundles of bound printed matter, whether 
bedloaded, sacked, or palletized. The mail must be prepared and 
documented:
    a. Under P710 or P730; or
    b. Under all these conditions:
    (1) A unique number is assigned to each sack/pallet in the mailing 
and printed on a separate line at the top of the sack/pallet label 
(above the Line 1 information on bound printed matter).
    (2) For bound printed matter and all palletized mailings, Line 2 of 
the sack/pallet label for each sack/pallet that contains mail for more 
than one zone also shows ``MIXED ZONES'' and the zone numbers (e.g., 
``STD FLTS MIXED ZONES 2 & 3'').
    (3) A detailed list accompanies each mailing or mailing segment, 
sequenced

[[Page 10194]]
numerically by the numbers assigned to sacks/pallets in the mailing, 
that shows the post office where the mail is to be entered (entry post 
office), a unique identifier for the mailing or mailing segment that 
also appears on the corresponding postage statement(s), the name and 
address of the mailer, the permit number (if applicable), the date of 
mailing, individual line entries for each sack/pallet, and the total 
number of pieces to each zone and in the entire mailing or mailing 
segment. Line entries for sacks/pallets containing mail for only one 
zone must show the sack/pallet number, the level of sortation, the zone 
for which the mail is destined, and the total number of pieces for the 
sack/pallet. Entries for sacks/pallets containing mail for more than 
one zone must also show (by zone) the number of pieces to each 3-digit 
ZIP Code area and the total number of pieces for that zone for the 
sack/pallet. Mailings are not accepted if there are discrepancies 
between the information in the detailed listing or on the postage 
statement and the results of USPS random verification of piece counts 
and postage.

M690  Nonprofit Standard Mail

M692  Basic and 3/5 Presort

[Insert text of current M302 and redesignate sections accordingly. In 
1.2, replace the references ``M302,'' ``M305,'' and ``M306'' with 
``M692,'' ``M695,'' and ``M696,'' respectively; in 1.2 and 3.3, replace 
``bulk third-class'' with ``Nonprofit Standard Mail''; remove current 
1.3 and 1.6 and renumber succeeding sections accordingly; in renumbered 
1.5, replace ``special (nonprofit)'' with ``Nonprofit''; in renumbered 
1.8a, replace ``City and 3-digit sacks'' with ``The 3-digit sacks''; in 
2.1, remove ``or optional city''; remove 2.2c, 2.2f, 2.3c, 2.3f, 3.4b, 
3.4e, 3.5b, 3.5e, 3.6b, and 3.6d and reletter succeeding sections 
accordingly; in relettered 2.2e, 2.3e, 3.4d, and 3.5d, replace 
``State'' with ``ADC''; in relettered 2.2f, 2.3f, 3.4e, 3.5e, and 3.6e, 
replace ``M[ixed states]'' with ``M[ixed ADC]''; in relettered 2.3e, 
replace ``orange Label S'' with ``pink Label A''; in relettered 3.5c, 
replace ``Column B'' with ``Column C''; in relettered 3.5d, replace the 
references ``L703 or L704'' with ``L004 (flats) or L603 (irregular 
parcels), as applicable''; and in relettered 3.5e, replace ``origin 
SDC'' with ``origin ``ADC'' and replace the references ``L706 or L707, 
as applicable'' with ``L004''; in 3.6, replace ``3C'' with ``STD''; no 
other change to text.]

M693  Carrier Route

[Insert text of current M303 and redesignate sections accordingly. In 
1.2, replace ``bulk third-class'' with ``Nonprofit Standard Mail,'' the 
reference ``M043'' with ``M045,'' the reference ``M303'' with ``M693,'' 
and the reference ``M304'' with ``M050''; remove 1.3 and 1.5, and 
renumber succeeding sections accordingly; in renumbered 1.3, replace 
the reference ``D300'' with ``D600''; in renumbered 1.5, replace the 
reference ``1.5 or 1.6, as applicable'' and ``Exhibit 1.7'' with 
``1.4'' and ``Exhibit 1.5,'' respectively; redesignate current Exhibit 
1.7 as Exhibit 1.5; in 2.7, replace the reference ``1.7'' with ``1.5''; 
in 3.3a, replace the references ``E334'' and ``M304'' with ``E632'' and 
``M693,'' respectively; in 3.4b, replace the reference ``E334'' with 
``E632''; and in 3.6, replace ``3C'' with ``STD 3C''; no other change 
to text.]

M695  Machinable Parcels

[Insert text of current M305 and redesignate as M695; in 2.3, replace 
the references to ``L705'' and ``L708'' with ``L601'' and ``L602,'' 
respectively; in 2.4, replace ``3C'' with ``STD 3C''; no other change 
in text.]

M696  Irregular Parcels

[Insert text of current M306 and redesignate as M696; in 1.5, replace 
``bulk third-class'' with ``Nonprofit Standard Mail''; in 2.0, replace 
the reference ``M302'' with ``M692''; in 3.0, replace ``3C'' with ``STD 
3C'' and the reference ``M302'' with ``M692.'']

M697  Bedloaded Bundles

[Insert text of current M307 and redesignate as M697; in 1.2, replace 
``third-class mail'' with ``Nonprofit Standard Mail''; in 2.3, replace 
the references ``M302 or M303'' with ``M692 or M693''; in 3.3, replace 
the references ``M302 or M303'' with ``M692 or M693.'']

M698  Combined Mailings of Nonprofit Standard Mail and Standard 
Mail (B) Machinable Parcels

[Insert text of current M073 and redesignate as M698. In 1.1, replace 
``third-class and fourth-class'' with ``Nonprofit Standard Mail and 
Standard Mail (B)''; in 1.2, replace ``third- or fourth-class'' with 
``Nonprofit Standard Mail or Standard Mail (B) and remove ``class or''; 
in 1.5, replace the reference ``M043'' with ``M045''; in 1.6 and 1.7, 
replace ``class'' with ``category''; in 1.7 and 2.3, replace ``third- 
and fourth-class'' with ``Nonprofit Standard Mail and Standard Mail (B) 
pieces''; in 3.2, replace the references ``L705'' and ``L708'' with 
``L601'' and ``L602,'' respectively; in 3.3, replace ``3C/4C'' with 
``STD 3C/4C.'']

M800  Automation-Compatible Mail

[Move text of current M810 and M820 to M890 and renumber and revise as 
shown below to apply only to Preferred Periodicals and Nonprofit 
Standard Mail. For automation rate First-Class, Regular Periodicals, 
and Standard Mail (A), add new M810 (replacing M814, M815, and M816) 
and new M820 (replacing M823), as follows (M812, M813, M817, M818, 
M819, M825, and M827 are removed for these subclasses).]

[Add new M810 as follows:]

M810  Letter-Size Mail (Except Preferred Periodicals and Nonprofit 
Standard Mail)

1.0  Basic Standards

1.1  Standards

    Letter-size automation rate First-Class, Regular Periodicals, and 
Standard Mail (A) must be prepared under M810, subject to the basic 
eligibility standards applicable to the rate claimed. Package and tray 
preparation are subject to the general standards in M010, M020, and 
M030. Firm packages may not be included in mailings prepared under 
M810. Effective January 1, 1997, trays must be labeled with barcoded 
tray labels under M032.

1.2  Mailings

    All pieces in a mailing must meet the standards in C810 and must be 
sorted together to the finest extent required. A single automation rate 
mailing (e.g., automation First-Class) may include pieces prepared at 
all available rate levels (e.g., 5-Digit, 3-Digit, and Basic); all may 
be reported on the same postage statement and documentation. 
Information about the definition of a mailing and permissible 
combinations is in M011.

1.3  Marking

    First-Class pieces must be marked ``First-Class'' or ``Presorted 
First-Class''; Standard Mail must be marked either ``Bulk Rate'' or 
``Blk. Rt.'' In addition, all pieces must be marked ``AUTO'' (or 
``AUTOCR'' for carrier route rate pieces, as appropriate). No markings 
are required on Periodicals pieces. Pieces not claimed at an automation 
rate must not be marked ``AUTO'' or ``AUTOCR.''

1.4  General Preparation

    Grouping, packaging, and labeling are not generally required, with 
these exceptions:
    a. No packaging is required in full trays except for any mailing 
consisting

[[Page 10195]]
entirely of card-size pieces. Pieces must be packaged to preserve 
orientation in overflow and less-than-full trays.
    b. Pieces must be grouped as specified below in 5-digit carrier 
routes, AADC, and mixed AADC trays, and for Regular Periodicals.
    c. Package labels are required only for Regular Periodicals.

1.5  Carrier Route Rates

    Preparation of mail to qualify for automation carrier route rates 
is optional for First-Class and Standard Mail (A) pieces, subject to 
the availability limitations in E140 and E641.

1.6  Scheme Sortation

    Scheme sortation is required for automation rate First-Class, 
Regular Periodicals, and Standard Mail (A) mail for those 3-digit ZIP 
Code prefix groups listed in L003. Each 3-digit scheme group is subject 
to a single minimum volume standard.

1.7  First-Class Cards

    Pieces claimed at First-Class card rates and pieces claimed at 
First-Class letter rates are each subject to a separate minimum volume 
criteria whether prepared as separate or combined mailings. Either way, 
card-size and letter-size pieces may be presented at the same time and 
reported on the same postage statement.
2.0  Preparation--First-Class and Standard Mail (A)

2.1  Grouping--Carrier Route Pieces

    Grouping size, preparation sequence, and labeling: carrier route 
(only); required (10-piece minimum; fewer not permitted); use an 
optional endorsement line or carrier route information line. Group 
pieces by carrier route in full 5-digit carrier routes trays, using 
separator cards under M020, not packaging.

2.2  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. Carrier route: optional, but required for rate eligibility (full 
trays); no overflow; use 5-digit ZIP Code destination of pieces for 
Line 1, preceded for military mail by the prefixes under M031.
    b. 5-digit carrier routes (carrier route pieces only): optional, 
but required for rate eligibility (no minimum); overflow allowed; use 
5-digit ZIP Code destination of pieces for Line 1, preceded for 
military mail by the prefixes under M031.
    c. 5-digit: optional, but required for rate eligibility (150-piece 
minimum); overflow allowed; use 5-digit ZIP Code destination of pieces 
for Line 1, preceded for military mail by the prefixes under M031.
    d. 3-digit/scheme: required (150-piece minimum except no minimum 
for origin 3-digit(s)); overflow allowed; for Line 1, use L002, Column 
B.
    e. AADC: required (150-piece minimum); overflow allowed; group 
pieces by 3-digit ZIP Code prefix; use L801 for Line 1.
    f. Mixed AADC: required (no minimum); group by AADC; for Line 1, 
for First-Class Mail, use MXD, followed by the city/state/ZIP of the 
facility serving the 3-digit ZIP Code of the entry post office, as 
shown in L002, Column C, or, for Standard Mail, use L802 (mail entered 
by the mailer at an ASF or BMC) or L803, as appropriate.

2.3  Line 2

    Line 2: FCM or STD (as appropriate), LTRS BC, and:
    a. Carrier route trays: route type and number.
    b. 5-digit carrier routes trays: CR-RTS.
    c. For scheme trays: SCHEME.
    d. For mixed AADC trays: WKG.
3.0  Preparation--Periodicals

3.1  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. 5-digit: required (150-piece minimum); no overflow; use 5-digit 
ZIP Code destination of pieces for Line 1, preceded for military mail 
by the prefixes under M031.
    b. Unique 3-digit: required for rate eligibility (150 piece 
minimum); overflow allowed; use L002, Column A, for Line 1.
    c. 3-digit/scheme: required (150-piece minimum except no minimum 
for origin 3-digit(s)); overflow allowed; for Line 1, use L002, Column 
B.
    d. AADC: required (150-piece minimum); no overflow; use L801 for 
Line 1.
    e. Mixed AADC: required (no minimum); group by AADC; for Line 1, 
use L802 (mail entered by the mailer at an ASF or BMC) or L803, as 
appropriate.

3.2  Line 2

    Line 2: PER or NEWS (as appropriate), LTRS BC, and:
    a. For scheme trays: SCHEME.
    b. For mixed AADC trays: WKG.
4.0  Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation produced by PAVE-certified (or, except for Periodicals, 
MAC-certified) software, or standardized documentation meeting the 
standards in P012. Documentation of postage is not required if the 
correct rate is affixed to each piece, or if each piece is of identical 
weight and the pieces are separated by rate when presented for 
acceptance. Combined mailings of Periodicals publications must also be 
documented under M210. Periodicals are not subject to the standard for 
supporting documentation produced by PAVE-certified software, or 
standardized documentation meeting the standards in P012, until January 
1, 1997.

[Add new M820 as follows:]

M820  Flat-Size Mail (Except Preferred Periodicals and Nonprofit 
Standard Mail)

1.0  Basic Standards

1.1  Standards

    Flat-size automation rate First-Class, Regular Periodicals, and 
Standard Mail (A) must be prepared under M820, subject to the basic 
eligibility standards applicable to the rate claimed. Package, sack, 
and tray preparation are subject to the general standards in M010, 
M020, and M030. Effective January 1, 1997, trays must be labeled with 
barcoded tray labels under M032.

1.2  Mailings

    All pieces in a mailing must meet the standards in C820 and must be 
sorted together to the finest extent required. A single automation rate 
mailing (e.g., automation First-Class) may include pieces prepared at 
all available rate levels (e.g., 5-Digit, 3-Digit, and Basic); all may 
be reported on the same postage statement and documentation. 
Information about the definition of a mailing and permissible 
combinations is in M011.

1.3  Packages

    All pieces must be prepared in packages. When the pieces for a 
presort destination must be prepared in more than one package or in 
packages each with fewer pieces than the minimum required (because of 
size or total number of pieces), rate eligibility is not affected if 
the total number of pieces for that destination exceeds the applicable 
minimum. Firm packages may not be included in mailings prepared under 
M820.

1.4  Marking

    First-Class pieces must be marked ``AUTO'' and either ``First-
Class'' or ``Presorted First-Class.'' Standard Mail must be marked 
either ``Bulk Rate'' or ``Blk. Rt.'' and ``AUTO.'' No markings are 
required on Periodicals pieces.

[[Page 10196]]


1.5  Limited Exception--Standard Mail (A)

    The following exception is applicable until January 1, 1997; after 
that time, preparation will be based solely on the standards for the 
rate claimed and the processing category of the pieces, whether the 
same standards apply to other pieces claimed at other rates and 
produced as part of the same mailing job: When a Standard Mail (A) 
mailing job could, by size, qualify for Regular Standard Mail 
automation rates as either letters or flats, if part of the job is 
prepared as palletized flats at automation rates for flats, the 
remainder may be prepared as palletized flats at Enhanced Carrier Route 
rates and Regular nonletter nonautomation rates if the number of 
Regular nonletter nonautomation rate pieces does not exceed 15% of the 
total number of pieces in the entire mailing job.
2.0  Preparation--First-Class Mail

2.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); use 
red Label D or optional endorsement line (OEL).
    b. 3-digit: required (10-piece minimum, fewer not permitted); use 
green Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); use pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); use tan Label MS or OEL.

2.2  Tray Preparation

    Tray size, preparation sequence, and labeling:
    a. 5-digit: required full trays, no overflow; use 5-digit ZIP Code 
destination of packages for Line 1, preceded for military mail by the 
prefixes under M031.
    b. 3-digit: required full trays, no overflow, except no minimum for 
origin 3-digit(s); use L002, Column A, for Line 1.
    c. ADC: required full trays, no overflow; use L004 for Line 1.
    d. Mixed ADC: required (no minimum); use MXD, followed by the city/
state/ZIP of the facility serving the 3-digit ZIP Code of the entry 
post office, as shown in L002, Column C, for Line 1.

2.3  Line 2

    Line 2: FCM FLTS BC, and:
    a. Mixed ADC sacks: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
3.0  Preparation--Periodicals

3.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (six-piece minimum, fewer not permitted); use 
red Label D or optional endorsement line (OEL).
    b. 3-digit: required (six-piece minimum, fewer not permitted); use 
green Label 3 or OEL.
    c. ADC: required (six-piece minimum, fewer not permitted); use pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); use tan Label MS or OEL.

3.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required at 24 pieces, optional with one six-piece 
package minimum; use 5-digit ZIP Code destination of packages for Line 
1, preceded for military mail by the prefixes under M031.
    b. 3-digit: required at 24 pieces, optional with one six-piece 
package minimum, no minimum for origin 3-digit(s); use L002, Column A, 
for Line 1.
    c. ADC: required at 24 pieces, optional with one six-piece package 
minimum; use L004 for Line 1.
    d. Mixed ADC: required (no minimum); for Line 1, use L802 (mail 
entered by the mailer at an ASF or BMC) or L803, as appropriate.

3.3  Line 2

    Line 2: PER or NEWS (as appropriate), FLTS BC, and:
    a. Mixed ADC sacks: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
4.0  Preparation--Standard Mail

4.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: required (10-piece minimum, fewer not permitted); use 
red Label D or optional endorsement line (OEL).
    b. 3-digit: required (10-piece minimum, fewer not permitted); use 
green Label 3 or OEL.
    c. ADC: required (10-piece minimum, fewer not permitted); use pink 
Label A or OEL.
    d. Mixed ADC: required (no minimum); use tan Label MS or OEL.

4.2  Required Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:
    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum; those that weigh more must be 
prepared using the 15-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 125-piece 
or 15-pound minimum applies) or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 4.2b (``BOTH'').

4.3  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. 5-digit: required (125-piece/15-pound minimum, smaller volume 
not permitted); use 5-digit ZIP Code destination of packages for Line 
1, preceded for military mail by the prefixes under M031.
    b. 3-digit: required (125-piece/15-pound minimum, smaller volume 
not permitted, except no minimum for origin 3-digit(s)); use L002, 
Column A, for Line 1.
    c. ADC: required (125-piece/15-pound minimum, smaller volume not 
permitted); use L004 for Line 1.
    d. Mixed ADC: required (no minimum); for Line 1, use L802 (mail 
entered by the mailer at an ASF or BMC) or L803, as appropriate.

4.4  Line 2

    Line 2: STD FLTS BC and:
    a. Mixed ADC sacks: WKG.
    b. As required by the applicable labeling list, Line 2 processing 
code must be right-justified under the ZIP Code on Line 1.
5.0  Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
documentation produced by PAVE-certified (or, except for Periodicals, 
MAC-certified) software, or

[[Page 10197]]
standardized documentation meeting the standards in P012. Documentation 
of postage is not required if each piece is of identical weight, or if 
the correct rate is affixed to each piece or the pieces are separated 
by rate when presented for acceptance. Combined mailings of Periodicals 
publications must also be documented under M210. Periodicals are not 
subject to the standard for supporting documentation produced by PAVE-
certified software, or standardized documentation meeting the standards 
in P012, until January 1, 1997.

[Add new M890, based on current M810 and M820, as follows:]

M890  Preferred Periodicals and Nonprofit Standard Mail

M891  ZIP+4 Presort--Tray-Based Letter-Size Mailings

[Insert text of current M812 and redesignate as M891, revised to apply 
only to Preferred Periodicals publications and Nonprofit Standard Mail, 
as follows:]
1.0  Basic Standards

1.1  Standards

    Preferred Periodicals and Nonprofit Standard Mail claimed at a 
ZIP+4 presort rate must be prepared as a tray-based mailing under 1.2 
through 1.7, 2.0, 4.0, and 5.0, or as a package-based mailing under 
M892. Grouping, packaging, labeling, and traying are subject to M010, 
M020, and M030.

1.2  Automated Sites

    Mailings consisting entirely of pieces for the 3-digit areas listed 
in L897 (``automated sites'') may be prepared under 3.0 rather than 
2.0. Pieces for other ZIP Code areas must be prepared in a separate 
mailing.

1.3  Grouping

    Grouping is required for pieces for the same 3-digit ZIP Code 
prefix in SCF trays and for pieces for the same AADC area in working 
trays. Grouping by ZIP Code is not required in city or 3-digit trays.

1.4  Packaging

    Packaging is required:
    a. For mailings consisting entirely of pieces that qualify by size 
for First-Class card rates, regardless of the actual rate claimed or 
class of mail. Package labels are required in less-than-full trays.
    b. For mail in overflow AADC trays, in mixed AADC trays, and in a 
less-than-full working tray. Appropriate package labels are required in 
these trays.

1.5  No Packaging

    Packaging may not be used for larger than card-size pieces, except 
that:
    a. Mail in overflow trays must be packaged and labeled correctly as 
for the corresponding trays (mail in a less-than-full tray for the 
entry SCF must be sorted and labeled as 3-digit packages).
    b. Mail in AADC trays may be packaged, and mail in mixed AADC trays 
must be packaged into AADC packages.

1.6  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation and may be also marked ``ZIP+4'' or ``5-digit 
ZIP+4'' (as appropriate). No marking is required on Periodicals.

1.7  Carrier Route

    ZIP+4 rate mail and carrier route presort (or walk-sequence) rate 
mail may not be included in the same mailing or reported on the same 
postage statement.
2.0  Tray Preparation--Qualifying Mail
[In 2.2d, replace ``use L002, Column B, for Line 1 for 3-digit areas 
listed in Column C; L804 for Line 1 for others'' with ``use L002, 
Column C, except use L801 for indicated single 3-digit areas''; 2.2b 
and 2.3, replace ``second-class mail'' with ``Periodicals''; in 3.3a, 
replace ``L801'' with ``L897''; in 3.2b and 3.3b, replace ``L802'' with 
``L898''; no other change to 12.0. Revise succeeding sections as 
follows:]
3.0  Optional Preparation For Automated Sites--Qualifying Mail
[In 3.3a, replace ``L801'' with ``L897''; in 3.2b and 3.3b, replace 
``L802'' with ``L898''; no other change to 3.0.]
[Replace current 4.0 with new 4.0 as follows:]
4.0  Residual Mail
    Pieces remaining after packages and trays are prepared under 2.0 or 
3.0 are residual (nonqualifying) mail. Residual Periodicals and 
Standard Mail must be prepared as follows:
    a. All pieces must be sorted by AADC area using L801 (or, for 
automated site mailings, L899).
    b. Quantities of 10 or more pieces for an AADC area must be 
prepared as an AADC package (or, if possible, a full AADC tray). 
Packaging is not required in full AADC trays. AADC packages of fewer 
than 10 pieces are not permitted.
    c. All AADC packages must be trayed in AADC or mixed AADC trays. 
Pieces remaining after preparing full AADC trays and AADC packages must 
be placed in separate working trays.
    d. Pieces in less-than-full AADC overflow trays and in all mixed 
AADC trays must be packaged and labeled as AADC packages using a pink 
Label A or optional endorsement line. Separator cards are not 
permitted.
    e. Pieces in working trays must be grouped by AADC area. Pieces in 
a less-than-full working tray must be prepared in working packages up 
to 6 inches thick making as few packages as possible without regard to 
AADC breaks. Separator cards are not permitted. Label packages in less-
than-full working trays with either a facing slip marked ``WORKING'' or 
``WKG'' or the optional endorsement line ``WORKING.''
    f. A piece count listing must be provided for all residual pieces 
that shows by tray level and AADC area (listed by numeric AADC code 
from L801 or, for automated site mailings, L899) the number of pieces 
eligible for each rate and the number of pieces with and without a 
ZIP+4 code.
    g. Tray size:
    (1) AADC: required full trays; one overflow tray permitted per 
destination per mailing.
    (2) Mixed AADC: required full trays; one less-than-full tray 
permitted.
    (3) Working: required full trays; one less-than-full tray 
permitted.
    h. Residual preparation sequence and Line 1 labeling:
    (1) AADC: (required); use L801 or, for automated site mailings, 
L899.
    (2) Mixed AADC: (required); use L802 for mail entered at a BMC/ASF 
or L803 for mail entered at all other facilities.
    (3) Working: (required); use L802 for mail entered at a BMC/ASF or 
L803 for mail entered at all other facilities.
    i. For Line 2: class (PER or NEWS as applicable, or STD), followed 
by:
    (1) For AADC trays: AADC ZIP+4 PRESORT.
    (2) For mixed AADC trays: ZIP+4 PRESORT PKGS.
    (3) For working trays: ZIP+4 WORKING or ZIP+4 WKG.

[Revise 5.0 as follows:]
5.0  Documentation

5.1  Postage Statement

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. The endorsement 
``M891'' must be placed at the top and, as appropriate, ``Automated 
Site'' (if prepared under 3.0).
* * * * *

5.4  Standards

    Documentation must include residual pieces and meet the basic 
standards in

[[Page 10198]]
P012 and those below. Abbreviated documentation may be provided under 
M896. Combined mailings of Periodicals publications must also be 
documented under M210.
* * * * *

5.6  ZIP Code Option

    Under the ZIP Code option, individual entries for each type of tray 
destination must be in ascending numeric order by ZIP Code: by 5-digit 
ZIP Code for 5-digit trays; by lowest assigned 5-digit ZIP Code for 
city trays (Periodicals only); by 3-digit ZIP Code prefix for 3-digit 
and SCF trays; by the 3-digit AADC code (preceded by ``AADC'') in L801 
(or L899 for automated sites) for AADC, mixed AADC, and working trays. 
Volume in overflow trays must be included in the corresponding ZIP Code 
entry even though there is a list of overflow trays.

5.7  Tray Label Option

    Under the tray label option, individual entries for each tray must 
be listed sequentially by the unique tray number on each label or by 
Line 1 on the label. The contents of each overflow tray are reported as 
an individual entry even though there is a list of overflow trays. Each 
tray entry must be subdivided as needed to report volume sequentially 
by ZIP Code in the tray: by 5-digit ZIP Code for 5-digit trays; by 
lowest assigned 5-digit ZIP Code for city trays (Periodicals only); by 
3-digit ZIP Code for 3-digit and SCF trays; by the 3-digit AADC code 
(preceded by ``AADC'') in L801 (or L899 for automated sites) for AADC, 
mixed AADC, and working trays.

5.8  Line Entries

    Under either option, each entry must report ZIP+4 coded (including 
delivery point barcoded) and uncoded pieces by each rate for which 
specific numbers of pieces are eligible, and a cumulative total for the 
segment through that entry. As applicable, data on each line must be 
subdivided further to report separately:
    a. In Periodicals mailings, both in-county and outside-county 
pieces and Level G/J1 and Level H/J3 rates.
    b. In Standard Mail, pieces at each destination entry rate.

5.9  Subtotals and Summaries

    Each column of data must be subtotaled at the end of each segment 
of the report, and a summary must list data for the entire mailing, 
including the residual. The summary must include:
    a. The number of pieces with a ZIP+4 code or delivery point 
barcode, the number without, the total number of pieces in the mailing, 
and the percentage with ZIP+4 codes or delivery point barcodes.
    b. Each rate (or weight increment, combination of rate and 
discount, or other variable in 5.8), the number of pieces at each rate, 
the total postage at each rate, and the total postage for the mailing. 
(For Periodicals mailings, postage rates and computed totals may be 
omitted.)
    c. A list of overflow trays.
    d. For postage-affixed mailings, further detail must be added as 
needed to account for the value of postage affixed, if less than the 
applicable amount, and the net due, to yield the correct total postage.

M892  ZIP+4 Presort--Package-Based Letter-Size Mailings

[Insert text of current M813; redesignate as M892, revised to apply 
only to Barcoded Preferred Periodicals publications and Nonprofit 
Standard Mail, as follows:]
1.0  Basic Standards

1.1  Standards

    Preferred Periodicals and Nonprofit Standard Mail claimed at a 
ZIP+4 presort rate must be prepared as a package-based mailing under 
2.0, 3.0, 5.0, and 6.0, or as a tray-based mailing under M891. 
Grouping, packaging, labeling, and traying are subject to M010, M020, 
and M030.

1.2  Automated Sites

    Mailings consisting entirely of pieces for the 3-digit areas listed 
in L897 (``automated sites'') may be prepared under 4.0 rather than 
3.0. Pieces of Periodicals or Standard Mail for other ZIP Code areas 
must be prepared in a separate mailing.
* * * * *

1.4  No Packaging

    Packages or separator cards are not required for larger than card-
size pieces in full 5-digit trays, full AADC trays if the contents are 
only residual AADC packages, and full working trays under 4.2 and 4.3.
* * * * *
[Add new 1.6 as follows:]

1.6  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation, and may be also marked ``ZIP+4'' or ``5-digit 
ZIP+4'' (as appropriate). No marking is required on Periodicals.
2.0  Package Preparation
[In 2.1b and 2.2b, replace ``second-class mail'' with ``Periodicals''; 
in 2.2a, replace ``Line'' with ``line''; no other change to 2.0.]
3.0  Tray Preparation--Qualifying Mail
[In 3.3d, replace ``use L002, Column B, for Line 1 for 3-digit areas 
listed in Column C'' with ``use L002, Column C''; in 3.2b, 3.3b, and 
3.4b, replace ``second-class mail'' with ``Periodicals''; in 3.3e, 
change the reference from ``L804'' to ``L801''; no other change to 
3.0.]
4.0  Optional Preparation For Automated Sites--Qualifying Mail
[In 4.5b, replace the reference ``L802'' with ``L898''; in 4.6a, 
replace the reference ``L801'' with ``L897''; in 4.6b, replace the 
reference ``L802'' with ``L898''; in 4.6c, replace the reference 
``L803'' with ``L899''; no other change to 4.0.]
5.0  Residual Mail

5.1  Definition

    Pieces remaining after packages and trays are prepared under 2.0, 
3.0, and 4.0 are residual (nonqualifying) mail. Residual Periodicals 
and Standard Mail must be prepared under an option in 5.2 and under 
5.3. Residual mail from automated site mailings under 4.0 is subject to 
specific instructions where applicable. All residual mail must be 
presented under 5.4.

5.2  Options

    Residual Periodicals and Standard Mail must be prepared under one 
of these options and under 5.3.
    a. Separate AADC Preparation. Residual mail is trayed separately 
from qualifying mail. Groups of 10 or more residual pieces to an AADC 
area in L801 (or L899 or automated site preparation) are placed in AADC 
trays and mixed AADC trays. AADC trays are required if there are enough 
pieces to fill a tray, but less-than-full AADC trays are permitted. 
Residual pieces in mixed AADC trays and in less-than-full AADC trays 
must be prepared and labeled as AADC packages. Remaining groups of 
fewer than 10 pieces to an AADC are placed in separate working trays. 
Packages and trays must be prepared under 5.3.
    b. Intermixed SCF/AADC Preparation. Some residual mail is trayed 
with qualifying mail. Groups of 10 or more residual pieces to the same 
AADC area in L801 (or L899 for automated site preparation) are packaged 
by AADC and placed in AADC trays (with qualifying mail) and in mixed 
AADC trays. AADC trays are required if there are enough pieces to fill 
a tray, but less-than-full AADC trays are permitted. AADC trays 
containing only residual AADC packages are permitted. Mixed AADC trays 
are limited to residual AADC

[[Page 10199]]
packages. At the mailer's option, residual mail may be packaged by 3-
digit ZIP Code prefix and placed in SCF trays (remaining pieces sorted 
by AADC). A less-than-full tray for the entry SCF containing only 
residual packages is permitted. Remaining groups of fewer than 10 
pieces to an AADC are placed in separate working trays. Packages and 
trays must be prepared under 5.3.

5.3  Required Preparation

    Subject to 5.1 and 5.2, residual mail must be prepared as follows:

[In 5.3a(2) and 5.3a(3), replace ``L804'' and ``L803'' with ``L801'' 
and ``L899,'' respectively; in 5.3c(1), replace ``Column A, identified 
with three bullets'' with ``Column C''; in 5.3c(2), replace ``L802'' 
with ``L898.'']
* * * * *
    d. Tray preparation sequence and Line 1 labeling:
    (1) Optional 3-digit (only for single 3-digit SCFs under option 
5.2b); use L002, Column C. This tray is not available for the residual 
mail of automated site mailings.
    (2) Optional SCF (only for option 5.2b); use L898 for automated 
site mailings, use L002, Column C, for other mailings.
    (3) AADC (required); use L899 for automated site mailings, use L801 
for other mailings.
    (4) Mixed AADC (required); use L802 for mail entered at a BMC/ASF 
or L803 for mail entered at all other facilities.
    (5) Working (required); use L802 for mail entered at a BMC/ASF or 
L803 for mail entered at all other facilities.
    e. Line 2: class (PER or NEWS as applicable, or STD), followed by:
    (1) On 3-digit and SCF trays
    (option 5.2b only): ZIP+4 PRESORT.
    (2) On AADC trays: AADC ZIP+4 PRESORT.
    (3) On mixed AADC trays: ZIP+4 PRESORT PKGS.
    (4) On working trays: ZIP+4 WORKING or ZIP+4 WKG.

[Remove current 5.4 and 5.5; renumber current 5.6 as 5.4.]
6.0  Documentation

6.1  Postage Statement

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. The endorsement 
``M892'' must be placed at the top and, as appropriate, ``Automated 
Site'' (if prepared under 4.0).

6.2  When Not Required

    Documentation under 6.3 through 6.8 is not required if each piece 
in the mailing is correctly ZIP+4 coded (or delivery point barcoded) 
and either has postage affixed at the exact rate for which it qualifies 
or is of identical weight, the pieces in each tray are subject to the 
same rate, and the trays for each rate are segregated when presented to 
the USPS.

6.3  Standards

    Documentation must include residual pieces and must meet the basic 
standards in P012 and those below. Abbreviated documentation may be 
provided under M896. Combined mailings of Periodicals publications must 
be documented under M210.

6.4  Segmentation, Labeling

    Documentation must be segmented and labeled by qualification tier 
(e.g., residual). Each tier must be further segmented by type of 
package/grouping (5-digit, 3-digit, AADC, as applicable) under 6.5, or 
have all represented 3-digit and 5-digit ZIP Codes (and AADC codes for 
residual mail under 5.2 and 5.3) reported in a continuous sequential 
list under 6.6 within each tier listing. Under either option, data must 
be presented as shown in 6.7 and 6.8.

6.5  Type of Package Option

    If the report is segmented by type of package, individual entries 
for each destination must be in ascending numeric order by ZIP Code: by 
5-digit ZIP Code for 5-digit packages; by lowest assigned 5-digit ZIP 
Code for city packages (Periodicals only); by 3-digit ZIP Code prefix 
for 3-digit packages; and, for AADC packages and AADC groups (in 
working trays) under 5.2 and 5.3, by the applicable 3-digit AADC code 
in L899 (for automated site mailings) or L801 (AADC entries must be 
preceded by ``AADC'').

6.6  Sequential List Option

    If the report is a sequential list, individual entries for each 
destination must be listed sequentially by ZIP Code within each tier, 
regardless of package type: by 5-digit ZIP Code for 5-digit packages; 
by lowest assigned 5-digit ZIP Code for city packages (Periodicals 
only); by 3-digit ZIP Code for 3-digit packages; and, for AADC packages 
and AADC groups (in working trays) under 5.2 and 5.3, by the applicable 
3-digit AADC code in L899 (for automated site mailings) or L801. (AADC 
entries must be preceded by ``AADC.'') For Periodicals only, listings 
for 5-digit, city, and 3-digit packages must be preceded by the 
prefixes ``5DG,'' ``CTY,'' and ``3DG,'' respectively.

6.7  Line Entries

    Under either option, each entry must separately report ZIP+4 coded 
(including delivery point barcoded) and uncoded pieces by each rate for 
which specific numbers of pieces are eligible; and a cumulative total 
for the segment through that entry. As applicable, data on each line 
must be subdivided further to report separately:
    a. In Periodicals mailings, both in-county and outside-county 
pieces, and Level G/J1 and Level H/J3 rates.
    b. In Standard Mail, pieces at each destination entry rate.

6.8  Subtotals and Summaries

    Each column of data must be subtotaled at the end of each segment 
of the report, and a summary must list data for the entire mailing, 
including the residual. The summary must include:
    a. The number of pieces with a ZIP+4 code or DPBC, the number 
without, the total number of pieces in the mailing, and the percentage 
with ZIP+4 codes or DPBC.
    b. Each rate (or weight increment, combination of rate and 
discount, or other variable in 6.7), the number of pieces at each rate, 
the total postage at each rate, and the total postage for the mailing. 
(For Periodicals mailings, postage rates and computed totals may be 
omitted.)
    c. For postage-affixed mailings, further detail must be added as 
needed to account for the value of postage affixed, if less than the 
applicable amount, and the net due, to yield the correct total postage.

M893 Barcoded--Tray-Based Letter-Size Mailings

[Insert text of current M814 and redesignate as M893, revised to apply 
only to Barcoded Preferred Periodicals publications and Nonprofit 
Standard Mail, as follows:]

[Insert new 1.0 as follows:]
1.0  Basic Standards

1.1  Standards

    Preferred Periodicals and Nonprofit Standard Mail claimed at a 
Barcoded rate must be prepared as a tray-based mailing under 1.2 
through 1.7 and 2.0 through 4.0, or as a package-based mailing under 
M894 or M895. Grouping, packaging, labeling, and traying are subject to 
M010, M020, and M030.

1.2  Grouping

    Grouping is required for pieces for the same 3-digit ZIP Code 
prefix in SCF trays, and for pieces for the same AADC area in working 
trays under 3.0.

[[Page 10200]]
Grouping by ZIP Code is not required in city or 3-digit trays.

1.3  Packaging

    Packaging is required for mailings consisting entirely of card-size 
pieces and for mail in overflow AADC trays, in mixed AADC trays, and in 
a less-than-full working tray. Appropriate package labels are required.

1.4  No Packaging

    Packaging may not be used for larger than card-size pieces, except 
that:
    a. Mail in overflow trays must be packaged to maintain orientation.
    b. Mail in a less-than-full tray for the entry SCF must be sorted 
and labeled as 3-digit packages.
    c. Mail in AADC trays may be packaged and mail in mixed AADC trays 
must be packaged into AADC packages.
    d. Mail in a less-than-full working tray under 3.0 must be 
packaged.

1.5  5-Digit Trays

    Only pieces with correct DPBCs may be sorted to 5-digit trays. 
Other pieces for the same ZIP Code must be sorted to successive trays 
as appropriate. Preparation of 5-digit trays is required only for mail 
claimed at the 5-digit Barcoded rate.

1.6  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation and may be also marked ``Barcoded.'' No marking 
is required on Periodicals.

1.7  Carrier Route

    Barcoded rate mail and carrier route (or walk-sequence) rate mail 
may not be included in the same mailing or reported on the same postage 
statement.
2.0  Tray Preparation
[In 2.2d, replace ``use L002, Column B, for Line 1 for 3-digit areas 
listed in Column C; L804 for Line 1 for others'' with ``use L002, 
Column C, except use L801 for indicated single 3-digit areas''; 2.2b 
and 2.3, replace ``second-class mail'' with ``Periodicals''; no other 
change to 2.0.]

[Insert new 3.0, based on current 3.0, as follows:]
3.0  Residual Mail
    Pieces remaining after packages and trays are prepared under 2.0 
are residual (nonqualifying) mail. Residual Periodicals and Standard 
Mail must be prepared as follows:
    a. All pieces must be sorted by AADC area using L801.
    b. Quantities of 10 or more pieces for an AADC area must be 
prepared as an AADC package (or, if possible, a full AADC tray). 
Packaging is not required in full AADC trays. AADC packages of fewer 
than 10 pieces are not permitted.
    c. All AADC packages must be trayed in AADC or mixed AADC trays. 
Pieces remaining after preparing full AADC trays and AADC packages must 
be placed in separate working trays.
    d. Pieces in less-than-full AADC overflow trays and in all mixed 
AADC trays must be packaged and labeled as AADC packages using a pink 
Label A or optional endorsement line (OEL). Separator cards are not 
permitted.
    e. Pieces in working trays must be grouped by AADC area. Pieces in 
a less-than-full working tray must be prepared in working packages up 
to 6 inches thick making as few packages as possible without regard to 
AADC breaks. Separator cards are not permitted. Label packages in less-
than-full working trays with either a facing slip marked ``WORKING'' or 
``WKG'' or the OEL ``WORKING.''
    f. A piece count listing must be provided for all residual pieces 
that shows by tray level and AADC area (listed by numeric AADC code 
from L801) the number of pieces eligible for each rate and the number 
of pieces with a DPBC, the number of pieces without a DPBC that qualify 
for ZIP+4 rates, and the number of other pieces.
    g. Tray size:
    (1) AADC: required full trays; one overflow tray permitted per 
destination per mailing.
    (2) Mixed AADC: required full trays; one less-than-full tray 
permitted.
    (3) Working: required full trays; one less-than-full tray 
permitted.
    h. Residual preparation sequence and Line 1 labeling:
    (1) AADC: (required); use L801.
    (2) Mixed AADC: (required); use L802 for mail entered at a BMC/ASF 
or L803 for mail entered at all other facilities.
    (3) Working: (required); use L802 for mail entered at a BMC/ASF or 
L803 for mail entered at all other facilities.
    i. For Line 2: class (PER or NEWS as applicable, or STD), followed 
by:
    (1) For AADC trays: LTRS AADC BARCODED.
    (2) For mixed AADC trays: LTRS BARCODED PKGS.
    (3) For working trays: LTRS BARCODED WKG.

[Revise 4.0 as follows:]
4.0  Documentation

4.1  Postage Statement

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. The endorsement 
``M893'' must be placed at the top, based on the documentation method 
used, and ``ZIP Code Option'' or ``Tray Label Option.''
* * * * *

4.4  Standards

    Documentation must include residual pieces and meet the basic 
standards in P012 and those below. Abbreviated documentation may be 
provided under M896. Combined mailings of Periodicals publications must 
also be documented under M210.
* * * * *

4.6  ZIP Code Option

    Under the ZIP Code option, individual entries for each type of tray 
destination must be in ascending numeric order by ZIP Code: by 5-digit 
ZIP Code for 5-digit trays; by lowest assigned 5-digit ZIP Code for 
city trays (Periodicals only); by 3-digit ZIP Code prefix for 3-digit 
and SCF trays; by the 3-digit AADC code (preceded by ``AADC'') in L801 
for AADC, mixed AADC, and working trays. Volume in overflow trays must 
be included in the corresponding entry even though there is a list of 
overflow trays.

4.7  Tray Label Option

    Under the tray label option, individual entries for each tray must 
be listed sequentially by the unique tray number on each label or by 
Line 1 on the label. The contents of each overflow tray are reported as 
an individual entry even though there is a list of overflow trays. Each 
tray entry must be subdivided as needed to report volume sequentially 
by ZIP Code in the tray: by 5-digit ZIP Code for 5-digit trays; by 
lowest assigned 5-digit ZIP Code for city trays (Periodicals only); by 
3-digit ZIP Code for 3-digit and SCF trays; by the 3-digit AADC code 
(preceded by ``AADC'') in L801 for AADC, mixed AADC, and working trays.

4.8  Line Entries

    Under either option, each entry must separately report DPBC mail, 
correctly ZIP+4 coded non-DPBC mail (meeting the standards in C830), 
and other pieces by each rate for which specific numbers of pieces are 
eligible, and a cumulative total for the segment through that entry. As 
applicable, data on each line must be subdivided further to report 
separately:
    a. In Periodicals mailings, both in-county and outside-county 
pieces and Level G/J1 and Level H/J3 rates.
    b. In Standard Mail, pieces at each destination entry rate.

4.9  Subtotals and Summaries

    Each column of data must be subtotaled at the end of each segment 
of

[[Page 10201]]
the report, and a summary must list data for the entire mailing, 
including the residual. The summary must include:
    a. The number of pieces with a DPBC, the number without, the total 
number of pieces in the mailing, and the percentage with DPBCs.
    b. Each rate (or weight increment, combination of rate and 
discount, or other variable in 4.8), the number of pieces at each rate, 
the total postage at each rate, and the total postage for the mailing. 
(For Periodicals mailings, postage rates and computed totals may be 
omitted.)
    c. A list of overflow trays.
    d. For postage-affixed mailings, further detail must be added as 
needed to account for the value of postage affixed, if less than the 
applicable amount and the net due, to yield the correct total postage.

M894  Barcoded--Two-Tier Package-Based Letter-Size Mailings

[Insert text of current M815 and redesignate as M894, revised to apply 
only to Barcoded Preferred Periodicals publications and Nonprofit 
Standard Mail, as follows:]
1.0  Basic Standards

1.1  Standards

    Preferred Periodicals and Nonprofit Standard Mail claimed at a 
Barcoded rate must be prepared as a tray-based mailing under M893, as a 
two-tier package-based mailing under 1.2 through 1.6 and 2.0 through 
5.0, or as a three-tier package-based mailing under M895. Grouping, 
packaging, labeling, and traying are subject to M010, M020, and M030.
* * * * *

1.3  No Packaging

    Packages or separator cards are not required for larger than card-
size pieces in full 5-digit trays, full AADC trays if the contents are 
only residual AADC packages, and full working trays under 4.2 and 4.3.

[Replace current 1.4 with the following:]

1.4  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation and may be also marked ``Barcoded.'' No marking 
is required on Periodicals.
* * * * *
[Remove current 1.7.]
2.0  Package Preparation
[In 2.1b and 2.2b, replace ``second-class'' with ``Periodicals''; 
remove the parenthetical in 2.1c and 2.2c; no other change to 2.0.]
3.0  Tray Preparation--Qualifying Mail
[In 3.3d, replace ``use L002, Column B, for Line 1 for 3-digit areas 
listed in Column C'' with ``use L002, Column C''; in 3.2b, 3.3b, and 
3.4b, replace ``second-class'' with ``Periodicals''; in 3.3e, replace 
the reference ``L804'' with ``L801''; no other change to 3.0.]

[Revise 4.0 as follows:]
4.0  Residual Mail

4.1  Definition

    Pieces remaining after packages and trays are prepared under 2.0 
and 3.0 are residual (nonqualifying) mail. Residual Periodicals and 
Standard Mail must be prepared under an option in 4.2 and under 4.3. 
All residual mail must be presented under 4.4.

4.2  Options

    Residual Periodicals and Standard Mail must be prepared under one 
of these options and under 4.3.
    a. Separate AADC Preparation. Residual mail is trayed separately 
from qualifying mail. Groups of 10 or more residual pieces to an AADC 
area in L801 are placed in AADC trays and mixed AADC trays. AADC trays 
are required if there are enough pieces to fill a tray, but less-than-
full AADC trays are permitted. Residual pieces in mixed AADC trays and 
in less-than-full AADC trays must be prepared and labeled as AADC 
packages. Remaining groups of fewer than 10 pieces to an AADC are 
placed in separate working trays. Packages and trays must be prepared 
under 4.3.
    b. Intermixed SCF/AADC Preparation. Some residual mail is trayed 
with qualifying mail. Groups of 10 or more residual pieces to the same 
AADC area in L801 are packaged by AADC and placed in AADC trays (with 
qualifying mail) and in mixed AADC trays. AADC trays are required if 
there are enough pieces to fill a tray, but less-than-full AADC trays 
are permitted. AADC trays containing only residual AADC packages are 
permitted. Mixed AADC trays are limited to residual AADC packages. At 
the mailer's option, residual mail may be packaged by 3-digit ZIP Code 
prefix placed in SCF trays (remaining pieces sorted by AADC). A less-
than-full tray for the entry SCF containing only residual packages is 
permitted. Remaining groups of fewer than 10 pieces to an AADC are 
placed in separate working trays. Packages and trays must be prepared 
under 4.3.

4.3  Required Preparation

    Subject to 4.1 and 4.2, residual mail must be prepared as follows:

[In 4.3a(2) and 4.3a(3), replace ``L804'' with ``L801.'']
* * * * *
    c. Tray size:
    (1) Optional 3-digit (only for single 3-digit SCFs in L002, Column 
C, and prepared under option 4.2b): required full trays; less-than-full 
and overflow trays prohibited, except for one less-than-full tray for 
the single 3-digit origin SCF.
* * * * *
    d. Tray preparation sequence and Line 1 labeling:
    (1) Optional 3-digit (only for single 3-digit SCFs under option 
4.2b); use L002, Column C.
    (2) Optional SCF (only for option 4.2b); use L002, Column C.
    (3) AADC (required); use L801.
    (4) Mixed AADC (required); use L802 for mail entered at a BMC/ASF 
or L803 for mail entered at all other facilities.
    (5) Working (required); use L802 for mail entered at a BMC/ASF or 
L803 for mail entered at all other facilities.
    e. Line 2: class (PER or NEWS as applicable, or STD), followed by:
    (1) In 3-digit and SCF trays (option 4.2b only): ZIP+4 PRESORT.
    (2) In AADC trays: AADC ZIP+4 PRESORT.
    (3) In mixed AADC trays: ZIP+4 PRESORT PKGS.
    (4) In working trays: ZIP+4 WORKING or ZIP+4 WKG.

[Remove current 4.4 and 4.5; renumber current 4.6 as 4.4.]

[Revise 5.0 as follows:]
5.0  Documentation

5.1  Postage Statement

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. The endorsement 
``M894 must be placed at the top.

5.2  Standards

    Documentation must include residual pieces and must meet the basic 
standards in P012 and those below. Abbreviated documentation may be 
provided under M896. Combined mailings of Periodicals publications must 
be documented under M210.

5.3  When Not Required

    Documentation under 5.4 through 5.8 is not required if each piece 
in the mailing is correctly delivery point barcoded and either has 
postage affixed at the exact rate for which it qualifies or is of 
identical weight, the pieces in each tray are subject to the same rate, 
and the trays for each rate are segregated when presented to the USPS.

[[Page 10202]]


5.4  Segmentation, Labeling

    Documentation must be segmented and labeled by qualification tier 
(e.g., residual). Each tier must be further segmented by type of 
package/grouping (5-digit, 3-digit, AADC, as applicable) under 5.5, or 
have all represented 3- and 5-digit ZIP Codes (and AADC codes for 
residual mail under 4.2 and 4.3) reported in a continuous sequential 
list under 5.6 within each tier listing. Under either option, data must 
be presented as shown in 5.7 and 5.8.

5.5  Type of Package Option

    If the report is segmented by type of package, individual entries 
for each destination must be in ascending numeric order by ZIP Code: by 
5-digit ZIP Code for 5-digit packages; by lowest assigned 5-digit ZIP 
Code for city packages (Periodicals only); by 3-digit ZIP Code for 3-
digit packages; and, for AADC packages and AADC groups (in working 
trays) under 4.2 and 4.3, by the applicable 3-digit AADC code in L801 
(AADC entries must be preceded by ``AADC'').

5.6  Sequential List Option

    If the report is a sequential list, individual entries for each 
destination must be listed sequentially by ZIP Code within each tier, 
regardless of package type: by 5-digit ZIP Code for 5-digit packages; 
by lowest assigned 5-digit ZIP Code for city packages (Periodicals 
only); by 3-digit ZIP Code prefix for 3-digit packages; and, for AADC 
packages and AADC groups (in working trays) under 4.2 and 4.3, by the 
applicable 3-digit AADC code in L801. AADC entries must be preceded by 
the prefix ``AADC. For Periodicals only, listings for 5-digit, city, 
and 3-digit packages must be preceded by the prefixes ``5DG,'' ``CTY,'' 
and ``3DG,'' respectively.

5.7  Line Entries

    Under either option, each entry must separately report DPBC pieces, 
correctly ZIP+4 coded non-DPBC pieces (meeting the standards in C830), 
and other pieces, by each rate for which specific numbers of pieces are 
eligible; and a cumulative total for the segment through that entry. As 
applicable, data on each line must be subdivided further to report 
separately:
    a. In Periodicals mailings, both in-county and outside-county 
pieces and Level G/J1 and Level H/J3 rates.
    b. In Standard Mail, pieces at each destination entry rate.

5.8  Subtotals and Summaries

    Each column of data must be subtotaled at the end of each segment 
of the report, and a summary must list data for the entire mailing, 
including the residual. The summary must include:
    a. The number of pieces with a DPBC, the number without, the total 
number of pieces in the mailing, and the percentage with DPBCs.
    b. Each rate (or weight increment, combination of rate and 
discount, or other variable in 5.7), the number of pieces at each rate, 
the total postage at each rate, and the total postage for the mailing. 
(For Periodicals mailings, postage rates and computed totals may be 
omitted.)
    c. For postage-affixed mailings, further detail must be added as 
needed to account for the value of postage affixed, if less than the 
applicable amount, and the net due, to yield the correct total postage.

M895  Barcoded--Three-Tier Package-Based Letter-Size Mailings

[Insert text of current M816 and redesignate as M895, revised to apply 
only to Barcoded Preferred Periodicals publications and Nonprofit 
Standard Mail.]
1.0  Basic Standards

1.1  Standards

    Preferred Periodicals and Nonprofit Standard Mail claimed at a 
Barcoded rate must be prepared as a tray-based mailing under M893, as a 
two-tier package-based mailing under M894, or as a three-tier package-
based mailing under 1.2 through 1.6 and 2.0 through 7.0. Grouping, 
packaging, labeling, and traying are subject to M010, M020, and M030.
* * * * *

1.3  No Packaging

    Packages or separator cards are not required for larger than card-
size pieces in full 5-digit trays in the 5-digit tier; or in the 3-
digit tier in full city, full 3-digit, full SCF, and full AADC trays 
containing only residual AADC packages; or in full working trays under 
6.2 and 6.3.
* * * * *

1.5  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation, and may be also marked ``Barcoded.'' No 
marking is required on Periodicals.
* * * * *
[Remove 1.7.]

[In 3.3c and 5.3c, replace ``use L002, Column B, for Line 1 for 3-digit 
areas listed in Column C'' with ``use L002, Column C''; in 3.3d, 
replace ``L804'' with ``L801''; in 4.1a, 4.2a, 5.2a, 5.3a, and 5.4b, 
replace ``second-class mail'' with ``Periodicals''; in 4.1b and 4.2b, 
remove the parenthetical ``optional for...''; in 5.3d, 6.3a(2), 
6.3a(3), and 6.3b(2), replace the reference ``L804'' with ``L801''; no 
other change to 2.0 through 5.0.]
6.0  Residual Mail

6.1  Definition

    Pieces remaining after packages and trays are prepared under 2.0 
through 5.0 are residual (nonqualifying) mail. Residual Periodicals and 
Standard Mail must be prepared under an option in 6.2 and under 6.3. 
All residual mail must be presented under 6.4.

6.2  Options

    Residual Periodicals and Standard Mail must be prepared under one 
of these options and under 6.3.
    a. Separate AADC Preparation. Residual mail is trayed separately 
from qualifying mail. Groups of 10 or more residual pieces to an AADC 
area in L801 are placed in AADC trays and mixed AADC trays. AADC trays 
are required if there are enough pieces to fill a tray, but less-than-
full AADC trays are permitted. Residual pieces in mixed AADC trays and 
in less-than-full AADC trays must be prepared and labeled as AADC 
packages. Remaining groups of fewer than 10 pieces to an AADC are 
placed in separate working trays. Packages and trays must be prepared 
under 6.3.
    b. Intermixed SCF/AADC Preparation. Some residual mail is trayed 
with qualifying mail. Groups of 10 or more residual pieces to the same 
AADC area in L801 are packaged by AADC and placed in AADC trays (with 
qualifying mail) and in mixed AADC trays. AADC trays are required if 
there are enough pieces to fill a tray, but less-than-full AADC trays 
are permitted. AADC trays containing only residual AADC packages are 
permitted. Mixed AADC trays are limited to residual AADC packages. At 
the mailer's option, residual mail may be packaged by 3-digit ZIP Code 
prefix and placed in SCF trays (remaining pieces sorted by AADC). A 
less-than-full tray for the entry SCF containing only residual packages 
is permitted. Remaining groups of fewer than 10 pieces to an AADC are 
placed in separate working trays. Packages and trays must be prepared 
under 6.3.

6.3  Required Preparation

    Subject to 6.1 and 6.2, residual mail must be prepared as follows:

[In 6.3a(2) and 6.3a(3), replace ``L804'' with ``L801.'']
* * * * *

[[Page 10203]]

    c. Tray size:
    (1) Optional 3-digit (only for single 3-digit SCFs in L002, Column 
C, and prepared under option 6.2b): required full trays; less-than-full 
and overflow trays prohibited, except for one less-than-full tray for 
the single 3-digit origin SCF.
* * * * *
    d. Tray presort sequence and Line 1 labeling:
    (1) Optional 3-digit (only for single 3-digit SCFs under option 
6.2b); use L002, Column C.
    (2) Optional SCF (only for option 6.2b); use L002, Column C.
    (3) AADC (required); use L801.
    (4) Mixed AADC (required); use L802 for mail entered at a BMC/ASF 
or L803 or mail entered at all other facilities.
    (5) Working (required); use L802 for mail entered at a BMC/ASF or 
L803 for mail entered at all other facilities.
    e. Line 2: class (PER or NEWS, as applicable, or STD), followed by:
    (1) In 3-digit and SCF trays (option 6.2b only): ZIP+4 PRESORT.
    (2) In AADC trays: AADC ZIP+4 PRESORT.
    (3) In mixed AADC trays: ZIP+4 PRESORT PKGS.
    (4) In working trays: ZIP+4 WORKING or ZIP+4 WKG.

[Remove current 6.4 and 6.5; renumber current 6.6 as 6.4, no change in 
text.]
7.0  Documentation

7.1  Postage Statement

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. The endorsement 
``M895'' must be placed at the top.

7.2  Standards

    Documentation must include residual pieces and must meet the basic 
standards in P012 and those below. Abbreviated documentation may be 
provided under M896. Combined mailings of Periodicals publications must 
be documented under M210.

7.3  When Not Required

    Documentation under 7.4 through 7.8 is not required if each piece 
in the mailing is correctly delivery point barcoded and either has 
postage affixed at the exact rate for which it qualifies; or is of 
identical weight, the pieces in each tray are subject to the same rate, 
and the trays for each rate are segregated when presented to the USPS.

7.4  Segmentation, Labeling

    Documentation must be segmented and labeled by qualification tier 
(e.g., residual). Each tier must be further segmented by type of 
package/grouping (5-digit, 3-digit, AADC, as applicable) under 7.5, or 
have all represented 3- and 5-digit ZIP Codes (and AADC codes for 
residual mail under 6.2 and 6.3) reported in a continuous sequential 
list under 7.6 within each tier listing. Under either option, data must 
be presented as shown in 7.7 and 7.8.

7.5  Type of Package Option

    If the report is segmented by type of package, individual entries 
for each destination must be in ascending numeric order by ZIP Code: by 
5-digit ZIP Code for 5-digit packages; by lowest assigned 5-digit ZIP 
Code for city packages (Periodicals only); by 3-digit ZIP Code prefix 
for 3-digit packages; and, for AADC packages and AADC groups (in 
working trays), by the applicable 3-digit AADC code in L801 (AADC 
entries must be preceded by ``AADC'').

7.6  Sequential List Option

    If the report is a sequential list, individual entries for each 
destination must be listed sequentially by ZIP Code within each tier, 
regardless of package type: by 5-digit ZIP Code for 5-digit packages; 
by lowest assigned 5-digit ZIP Code for city packages (Periodicals 
only); by 3-digit ZIP Code prefix for 3-digit packages; and, for AADC 
packages and AADC groups (in working trays) under 6.2 and 6.3, by the 
applicable 3-digit AADC code in L801. AADC entries must be preceded by 
the prefix ``AADC.'' For Periodicals only, listings for 5-digit, city, 
and 3-digit packages must be preceded by the prefixes ``5DG,'' ``CTY,'' 
and ``3DG,'' respectively.

7.7  Line Entries

    Under either option, each entry must separately report DPBC pieces, 
correctly ZIP+4 coded non-DPBC pieces (meeting the standards in C830), 
and other pieces, by each rate for which specific numbers of pieces are 
eligible; and a cumulative total for the segment through that entry. As 
applicable, data on each line must be subdivided further to report 
separately:
    a. In Periodicals mailings, both in-county and outside-county 
pieces and Level G/J1 and Level H/J3 rates.
    b. In Standard Mail, pieces at each destination entry rate.

7.8  Subtotals and Summaries

    Each column of data must be subtotaled at the end of each segment 
of the report, and a summary must list data for the entire mailing, 
including the residual. The summary must include:
    a. The number of pieces with a DPBC, the number without, the total 
number of pieces in the mailing, and the percentage with DPBCs.
    b. Each rate (or weight increment, combination of rate and 
discount, or other variable in 7.7), the number of pieces at each rate, 
the total postage at each rate, and the total postage for the mailing. 
(For Periodicals mailings, postage rates and computed totals may be 
omitted.)
    c. For postage-affixed mailings, further detail must be added as 
needed to account for the value of postage affixed, if less than the 
applicable amount, and the net due, to yield the correct total postage.

M896  Elective Documentation--Letter-Size Mailings

[Insert text of current M817 and redesignate as M896; in 1.1, 2.2, 2.4, 
3.1a, and 4.8, replace ``M812 through M816'' with ``M891 through 
M895''; in 1.2, 4.7b, and 4.7d, replace the references ``M817,'' 
``M815,'' and ``M812 or M814'' with ``M896,'' ``M894,'' and ``M891 or 
M893,'' respectively; no other change in text.]

[Remove current M818 and M819.]

M897  ZIP+4 Barcoded--Flat-Size Mail

[Insert text of current M823 and redesignate as M897, revised to apply 
only to Barcoded Preferred Periodicals publications and Nonprofit 
Standard Mail.]
1.0  Basic Standards

1.1  Standards

    Flat-size Preferred Periodicals and Nonprofit Standard Mail claimed 
at a ZIP+4 Barcoded rate must be prepared as described below. 
Packaging, labeling, and sacking are subject to M010, M020, and M030.
* * * * *

1.4  Marking

    Standard Mail must be marked ``Nonprofit Organization'' or the 
authorized abbreviation, and may be also marked ``Barcoded.'' No 
marking is required on Periodicals.

[In 1.5, replace the reference ``M825'' with ``M898.'']
* * * * *
[Revise 2.0 as follows:]
2.0  Package Preparation--Mailings Subject to 85% Rule

2.1  Package Preparation--Periodicals

    Package size, preparation sequence, and labeling for Periodicals:
    a. 5-digit: required at six pieces; smaller packages permitted but 
not

[[Page 10204]]
eligible for Level H rates; use red Label D or optional endorsement 
line (OEL).
    b. City: optional at six pieces; smaller packages permitted but not 
eligible for Level H rates; use yellow Label C or OEL.
    c. 3-digit: required at six pieces; smaller packages permitted but 
not eligible for Level H rates; use green Label 3 or OEL.
    d. SCF: required at six pieces; smaller packages permitted; use 
green Label 3 or OEL.

2.2  Package Preparation--Standard Mail

    Package size, preparation sequence, and labeling for Standard Mail:
    a. 5-digit: required at 10 pieces; smaller packages prohibited; use 
red Label D or optional endorsement line (OEL).
    b. 3-digit: required at 10 pieces; smaller packages prohibited; use 
green Label 3 or OEL.
    c. SCF: required at 10 pieces; smaller packages prohibited; use 
green Label 3 or OEL.

[Revise 3.0 as follows:]
3.0  Package Preparation--Mailings Not Subject to 85% Rule

3.1  Package Preparation--Periodicals

    Package size, preparation sequence, and labeling for Periodicals:
    a. 5-digit (ZIP+4 or DPBC pieces only; see 1.3): required at six 
pieces; smaller packages prohibited; use red Label D or optional 
endorsement line (OEL).
    b. 5-digit (nonbarcoded pieces only; see 1.3): required at six 
pieces; smaller packages prohibited; use red Label D or OEL.
    c. City: optional at six pieces; smaller packages permitted but not 
eligible for Level H rates; use yellow Label C or OEL.
    d. 3-digit: required at six pieces; smaller packages permitted but 
not eligible for Level H rates; use green Label 3 or OEL.
    e. SCF: required at six pieces; smaller packages permitted; use 
green Label 3 or OEL.

3.2  Package Preparation--Standard Mail

    Package size, preparation sequence, and labeling for Standard Mail:
    a. 5-digit (ZIP+4 or DPBC pieces only; see 1.3): required at 10 
pieces; smaller packages prohibited; use red Label D or optional 
endorsement line (OEL).
    b. 5-digit (nonbarcoded pieces only; see 1.3): required at 10 
pieces; smaller packages prohibited; use red Label D or OEL.
    c. 3-digit: required at 10 pieces; smaller packages prohibited; use 
green Label 3 or OEL.
    d. SCF: required at 10 pieces; smaller packages prohibited; use 
green Label 3 or OEL.

[Revise 4.0 as follows:]
4.0  Sack Preparation--Qualifying Mail

4.1  Sack Preparation--Periodicals

    Sack size, preparation sequence, and labeling for Periodicals:
    a. 5-digit: required with four packages; smaller volume permitted; 
use 5-digit ZIP Code destination of packages for Line 1, preceded for 
military mail by the prefixes under M031.
    b. City: optional with four packages; smaller volume permitted; use 
lowest ZIP Code for destination from L001 for Line 1.
    c. 3-digit: required with four packages; smaller volume permitted; 
use L002, Column A, for Line 1.
    d. SCF: required with four packages; smaller volume permitted; use 
L002, Column C, for Line 1.
    e. ADC: required with no minimum; use L004 for Line 1.

4.2  Required Sacking--Standard Mail

    For Standard Mail, a sack must be prepared when the quantity of 
mail for a required presort destination reaches either 125 pieces or 15 
pounds of pieces, whichever occurs first, subject to these conditions:
    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum, those that weigh more must be 
prepared using the 15-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 125-piece 
or 15-pound minimum applies) or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 4.2b (``BOTH'').

4.3  Sack Preparation--Standard Mail

    Sack size, preparation sequence, and labeling for Standard Mail, 
subject to 4.2:
    a. 5-digit: required at 125 pieces/15 pounds; smaller volume 
prohibited; use 5-digit ZIP Code destination of packages for Line 1, 
preceded for military mail by the prefixes under M031.
    b. 3-digit: required at 125 pieces/15 pounds; smaller volume 
prohibited; use L002, Column A, for Line 1.
    c. SCF: required at 125 pieces/15 pounds; smaller volume 
prohibited; use L002, Column C, for Line 1.
    d. ADC: required with no minimum; use L004 for Line 1.

4.4  Line 2

    Line 2: class of mail and FLTS BARCODED (and, on city sacks, CITY 
right-justified under the ZIP Code for Line 1).
5.0  Residual Mail
* * * * *

5.4  Sack Labeling

    Labeling of residual sacks:
    a. Line 1: ``MXD,'' followed by the applicable origin SCF name, 
state, and ZIP Code from L802 for mail entered at a BMC/ASF or L803 for 
mail entered at all other facilities.
* * * * *
6.0  Documentation
[In 6.2, replace the reference ``M825'' and ``E230'' with ``M898'' and 
``E239,'' respectively; in 6.9b, replace ``second-class'' with 
Periodicals''; revise other text as follows:]
* * * * *

6.7  Line Entries

    Under either option, the mailer must identify 5-digit, city, 3-
digit, SCF, and residual packages with the prefixes ``5DG,'' ``3DG,'' 
``SCF,'' and ``WKG,'' respectively. Each entry must separately report 
ZIP+4 or DPBC pieces, and 5-digit barcoded or nonbarcoded pieces, by 
each rate for which specific numbers of pieces are eligible; and a 
cumulative total for the segment through that entry. As applicable, 
data on each line must be subdivided further to report separately in 
Periodicals mailings both in-county and outside-county pieces and Level 
G/J1 and Level H/J3 rates.

6.8  Actual Piece Count

    In Standard Mail for which the mailer used the actual piece count 
and weight of the mail to prepare sacks (``BOTH''), a separate listing 
must identify for each sack the total number of pieces it contains and 
their combined weight.
* * * * *

[[Page 10205]]


M898  Elective Documentation--Flat-Size Mailings

[Insert text of current M825 and redesignate as M898; in 1.1, 2.2, 2.3, 
3.1a, 3.4, and 4.5, replace the reference ``M823'' with ``M897''; in 
1.2, replace the reference ``M825'' with ``M898.'']

[Remove current M827.]
P  Postage and Payment Methods

P000  Basic Information

P010  General Standards

P011  Payment

[In 1.1e, replace the reference ``(see E320)'' with ``(see E621)''; in 
1.5 and 2.3, replace ``third-class [mail]'' with ``Standard Mail (A)''; 
in 2.3, replace ``fourth-class'' with ``Standard Mail (B)''; in 4.2 and 
5.1, change the reference from ``E370'' to ``E670''; in 5.0 (heading) 
and 5.1, replace ``[S]pecial [bulk] [T]hird-[C]lass'' with ``Nonprofit 
Standard Mail''; no other change in text.]

P012  Documentation

1.0  Purpose and Basic Standards

1.1  General

[Add to the end of the section:]

    Documentation must be submitted when specified by the standards for 
the rate claimed or postage payment method used.
* * * * *
[In 1.5, replace the reference ``G010'' with ``G020.'']

[Renumber current 2.0 and 3.0 as 3.0 and 4.0 and insert new 2.0 as 
follows:]
2.0  Standardized Documentation--First-Class Mail, Regular Periodicals, 
and Regular Standard Mail

2.1  Basic Standard

    For First-Class Mail, Regular Periodicals, and Regular Standard 
Mail, subject to the standards for the rate claimed, documentation must 
be produced by software certified under the USPS Presort Accuracy 
Validation and Evaluation (PAVE) or Manifest Analysis and Certification 
(MAC) programs, appropriate for the accompanying class of mail and rate 
claimed, or must be prepared to meet the criteria for standardized 
documentation in this section. Standardized documentation contains the 
elements described in 2.2 through 2.6, as applicable. Documentation 
produced by PAVE- or MAC-certified software is considered standardized 
documentation for purposes of these standards.

2.2  Format and Content

    For First-Class Mail, Regular Periodicals, and Regular Standard 
Mail, standardized documentation includes:
    a. A heading identifying the listing as a ``USPS Qualification 
Report'' must appear at the top of each page. The heading must contain 
the name of the mailer and the mailing, a mailing identification code 
corresponding to the postage statement, the date, the class of mail, 
and either the DMM standard under which the mail was prepared (e.g., 
M800) or type of rates claimed.
    b. Sequential page numbers in the body of the listing.
    c. For mail in trays or sacks, the body of the listing reporting 
these required elements:
    (1) Tray/sack sortation level.
    (2) Tray/sack destination ZIP Code (use destination on top line of 
tray/sack label).
    (3) Group destination for automation letter mail (number of pieces 
for each carrier route in carrier routes trays, for each 3-digit ZIP 
Code prefix in 3-digit scheme and AADC trays, and for each AADC in 
mixed AADC trays), or package level and package destination for 
automation flats and regular nonautomation presort mail (use the 
presort destination as described in M020).
    (4) Number of pieces claimed at each rate.
    (5) A running total of pieces mailed that is continuous for each 
mailing.
    (6) The tray identification number and tray size (1-foot or 2-foot) 
if available for letter mail in trays.
    (7) Separate columns for each rate reported in the mailing, with 
pieces reported in the appropriate column (group information either in 
ZIP Code order and by level of sortation or by sortation level and 
within each sortation level, by ZIP Code).
    d. For packages on pallets, the body of the listing reporting these 
required elements:
    (1) Pallet sortation level.
    (2) Pallet destination ZIP Code (use destination on top line of 
pallet label).
    (3) For each package, the sortation level and number of pieces 
claimed at each rate.
    (4) Separate columns for each rate reported in the mailing, with 
pieces reported in the appropriate column, and a running total of 
pieces mailed that is continuous for each mailing (group information 
either in ZIP Code order and by level of sortation or by sortation 
level and within each sortation level, by ZIP Code; report trays and 
sacks on pallets by pallet level and destination; include all 
information required in 2.2c for mail in trays or sacks).
    (5) At the end of the listing, a summary report of the total number 
of pieces claimed at each postage rate on the pallet by postage payment 
method, and the total number of pieces and the total weight of the mail 
on the pallet.
    e. At the end of the documentation, a summary report of the total 
number of pieces mailed at each postage rate for each mailing reported 
on the listing by postage payment method (and by entry point for drop 
shipment mailings) and the total number of pieces in each mailing. This 
information must correspond to the information reported on the postage 
statement(s) for the pieces reported. Additional data must be provided 
if necessary to calculate the amount of postage for the mailing (or 
additional postage due, or postage to be refunded) if nonidentical-
weight pieces that do not bear the correct postage at the rate for 
which they qualify are included in the mailing, or if different rates 
of postage are affixed to pieces in the mailing.

2.3  Rate Level Column Headings

    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 2.2 as shown below:
    a. Automation First-Class and Standard Mail

------------------------------------------------------------------------
                   Rate                             Abbreviation        
------------------------------------------------------------------------
Carrier Route [letters/cards]............  CB                           
5-digit [letters/cards]..................  5B                           
3-digit [letters/cards]..................  3B                           
3/5 [flats]..............................  3/5B                         
Basic [letters/cards and flats]..........  BB                           
------------------------------------------------------------------------

    b. Presorted First-Class Mail and nonautomation Standard Mail

------------------------------------------------------------------------
                   Rate                             Abbreviation        
------------------------------------------------------------------------
Presorted First-Class....................  Presort                      
3/5......................................  3/5                          
Basic....................................  BS                           
------------------------------------------------------------------------

    c. Enhanced Carrier Route Standard Mail

------------------------------------------------------------------------
                   Rate                             Abbreviation        
------------------------------------------------------------------------
Saturation...............................  WS                           
High Density.............................  HD                           
Basic....................................  CR                           
------------------------------------------------------------------------

2.4  Tray, Sack, Pallet, Package Sortation Level

    The actual sortation level (or corresponding abbreviation) is used 
for the tray, sack, pallet, or package sortation levels required by 2.2 
as shown below:

[[Page 10206]]


------------------------------------------------------------------------
             Sortation level                        Abbreviation        
------------------------------------------------------------------------
Carrier Route(s).........................  CR                           
5-Digit..................................  5DG                          
3-Digit..................................  3DG                          
3-Digit Scheme [barcoded letters]........  3DGS                         
ADC......................................  n/a                          
AADC.....................................  n/a                          
Mixed ADC................................  MADC                         
Mixed AADC...............................  MAAD                         
SCF [pallets]............................  n/a                          
BMC or ASF...............................  n/a                          
------------------------------------------------------------------------

2.5  Combined and Copalletized Mailings

    For combined or copalletized mailings of Periodicals and Regular 
Standard Mail prepared under M045, the listing must show the following 
additional information:
    a. For mailings that require a separate postage statement, a column 
that further identifies the contents of all trays/packages by product 
or edition code, unless the mailer provides abbreviated documentation 
under 2.2. The applicable rates for each product or edition must be 
shown in the correct rate column and be summarized for each pallet and 
for the entire mailing.
    b. For large-volume mailing jobs reported on a single listing, the 
mailer may provide abbreviated documentation that shows full package 
detail for the first 20 pallets and every twentieth pallet thereafter 
if the mailer maintains full package detail (by product or edition code 
and rate) for the entire mailing job for 90 days and can provide it to 
the Postal Service upon request within 3 working days. Abbreviated 
documentation must include the rate summary by product or edition for 
each pallet, including those for which full detail package listings are 
not reported.

2.6  Optional Information

    Standardized documentation may include additional information about 
the pieces mailed (such as individual tray or sack total piece counts, 
optional identification codes, package weights) if this information 
does not conflict with the information required under 2.2 through 2.5.

[Revise the heading of renumbered 3.0 as follows:]
3.0 Standardized Documentation--Preferred Periodicals, Nonprofit 
Standard Mail, and Standard Mail (B)
[Renumber current 2.1 through 2.6 as 3.1 through 3.6, respectively; 
revise the introductory text of 3.1 as follows:]

3.1  Format and Content

    For Preferred Periodicals, Nonprofit Standard Mail, and Standard 
Mail (B), subject to the standards for the rate claimed, standard 
documentation must be provided that includes: * * *
* * * * *
[Revise the heading of renumbered 4.0 as follows:]
4.0  Postage Statement
[Add the following sentence to the end of the section:]

    * * * A facsimile postage statement produced by software certified 
by the USPS Presort Accuracy Validation and Evaluation (PAVE) or 
Manifest Analysis and Certification (MAC) programs, appropriate for the 
accompanying class of mail and rate claimed, is considered a USPS-
approved form for purposes of these standards.

P013  Rate Application and Computation

1.0  Basic Standards
* * * * *
[In 1.2c, replace ``mailing statement'' with ``postage statement''; 
revise 1.3, 1.4, and 1.5 as follows:]

1.3  Determining Single-Piece Weight

    To determine single-piece weight in any mailing at single-piece 
rates, in a bulk rate mailing at parcel post Standard Mail or Special 
Standard Mail rates, or in any bulk rate mailing of nonidentical-weight 
pieces (except at Periodicals rates), weigh each piece individually. To 
determine single-piece weight in any other bulk or presort rate mailing 
(except at Periodicals rates), weigh a sample group of at least 10 
randomly selected pieces and divide the total sample weight by the 
number of pieces in the sample. Express all single-piece weights in 
decimal pounds rounded off to four decimal places.

1.4  Affixing Postage--Single-Piece Rate Mailings

    In a postage-affixed single-piece rate Express Mail, First-Class, 
Priority Mail, or Standard Mail (A) mailing, or in any postage-affixed 
Standard Mail (B) mailing, the mailer must affix to each piece a value 
in adhesive stamps, precanceled stamps, or meter impressions equal to 
at least the postage required for the piece. (In a Standard Mail bound 
printed matter rate mailing, the postage affixed to each piece must be 
at least the sum of the applicable per pound charge based on the weight 
of the piece plus one unit of the applicable per piece charge.) Less 
than the correct amount of postage may be affixed only when permitted 
by standard or specific USPS authorization.

1.5  Affixing Postage--Other Than Single-Piece Rate Mailings

    In a First-Class, Priority Mail, or Standard Mail postage-affixed 
mailing at other than a single-piece rate, the mailer must affix to 
each piece a value in precanceled stamps or meter impressions that 
equals at least the full amount of postage at the applicable rate; or
    a. For First-Class and Priority Mail, the applicable postage at the 
lowest rate in the mailing (or a lesser amount if authorized under 
P760) if all additional postage is paid at the time of mailing.
    b. For Standard Mail (A), the minimum per piece charge, with the 
pound rate charge paid with permit imprint under the applicable 
standards; or the applicable postage at the lowest rate in the mailing 
(or a lesser amount if authorized under P760) if all additional postage 
is paid at the time of mailing.
    c. For bound printed matter Standard Mail, the postage affixed to 
each piece must be at least the sum of the applicable per pound charge 
plus one unit of the applicable per piece charge.
* * * * *
[Revise 3.0 (heading), 3.1, 3.2, and 3.3 as follows:]
3.0  Rate Application--Periodicals

3.1  Rate Elements

    Postage for all Periodicals includes a pound rate charge, a piece 
rate charge, and any discount for which the mail qualifies under the 
corresponding standards.

3.2  Applying Pound Rate

    Pound rates are applied to the weight of the mailpieces in the 
mailing. Regular and Preferred outside-county pound rates are based on 
the weight of the advertising portion of the mail sent to each postal 
zone (as computed from the entry office) and the weight of the 
nonadvertising portion without regard to zone. In-county pound rates 
consist of a delivery unit zone rate and a uniform (unzoned) rate for 
all other eligible mailpieces delivered within the county of 
publication. The minimum pound rate charge for any zone or other group 
for which a per pound charge is computed is 1 unit (1 pound) of the 
pound rate charge. For example, three 2-ounce pieces for a zone are 
subject to the minimum 1-pound charge.

3.3  Computing Weight of Advertising Portion

    The pound rate charge is the sum of the charges for the computed 
weight of the advertising portion of copies to each zone, plus an 
additional flat (unzoned)

[[Page 10207]]
charge for the total weight of the nonadvertising portion of all copies 
to all zones. For publications containing advertising, the minimum 
pound rate charge for any zone to which copies are mailed is 1 unit 
(pound) of the advertising pound rate charge. The minimum pound rate 
charge for the nonadvertising portion is that which applies to all 
weight not reported in the advertising (zoned) portion. (Authorized 
nonprofit rate publications with an advertising percentage that is 10% 
or less are considered 100% nonadvertising. When computing the pound 
rates and the nonadvertising adjustment, use ``0'' as the advertising 
percentage. Authorized nonprofit rate publications claiming 0% 
advertising must pay the nonadvertising pound rate for the entire 
weight of all copies to all zones.)
* * * * *
[Revise the heading of 4.0 as follows:]
4.0  Rate Application--Standard Mail (A)
[In 4.1a, 4.1b, and 4.1c, replace ``third-class'' with ``Standard Mail 
(A)'' and revise the introductory text of 4.1 as follows:]

4.1  Single-Piece Rates

    Single-piece rate postage is based on the rate that applies to the 
weight (postage) increment of each piece. Single-piece rates are 
applied differently, depending on weight: * * *
* * * * *
[Revise 4.3 as follows:]

4.3  Bulk Rates

    Bulk rates are based on the weight of the pieces and are applied 
differently to pieces weighing under or equal to a ``break point'' 
(rounded to four decimal places) and those weighing more:
    a. Pieces weighing 0.2067 pound (3.3062 ounces) or less (Enhanced 
Carrier Route rates), 0.2068 pound (3.3087 ounces) or less (Regular 
rates), or 0.2149 pound (3.4383 ounces) or less (Nonprofit rates), are 
subject to the minimum applicable rate per piece.
    b. Pieces weighing more than 0.2067 pound (3.3062 ounces) (Enhanced 
Carrier Route rates), 0.2068 pound (3.3087 ounces) (Regular rates), or 
0.2149 pound (3.4383 ounces) (Nonprofit rates), are subject to a per 
piece charge plus a per pound charge based on the weight of the piece.

[Revise the heading of 5.0 as follows:]
5.0  Rate Application--Standard Mail (B)
* * * * *
[Revise 5.4 as follows:]

5.4  Special Standard Mail

    The Special Standard Mail rate is charged per pound or fraction 
thereof; any fraction of a pound is considered a whole pound. (Rate 
application is identical for the single-piece and presort rates.) For 
example, if an item weighs 4.225 pounds, the weight (postage) increment 
is 5 pounds. The minimum postage rate per piece is that for a piece 
weighing 1 pound.

[In 5.5 (heading and text), replace ``Library'' with ``Library Mail.'']
* * * * *
[Revise the heading of 7.0 as follows:]
7.0  Computing Postage--Periodicals
* * * * *
[Revise 7.4 and 7.6 as follows:]

7.4  Pound Rate

    To compute the pound rate postage for Regular and Preferred 
outside-county copies, multiply the weight of the advertising and 
nonadvertising portions by the corresponding rates, add the unrounded 
results, and subtract any applicable discounts. To compute the pound 
rate postage for in-county copies, multiply their total weight by the 
corresponding rate per pound.
* * * * *

7.6  Nonadvertising Adjustment

    To compute the nonadvertising adjustment (where applicable), 
subtract the advertising percentage from 100, multiply the remainder by 
the nonadvertising adjustment per piece, multiply the unrounded product 
by the number of pieces, and round off the product to four decimal 
places.
* * * * *
[Revise the heading of 8.0 as follows:]
8.0  Computing Postage--Standard Mail (A)
* * * * *
[Revise the heading of 9.0 as follows:]
9.0  Computing Postage--Standard Mail (B)
[In 9.1b and 9.3, replace ``[F]ourth-[C]lass'' with ``Standard Mail 
(B)''; in 9.4, replace the reference ``R400'' with ``R600.'']
* * * * *
[Combine current 9.5 and 9.6 and revise as follows:]

9.5  Permit Imprint

    In a permit imprint mailing:
    a. At other than bulk bound printed matter rates, for each weight 
increment multiply the number of pieces by the applicable rate per 
piece, rounding off each product to four decimal places. Add the 
products and round up the total postage to the nearest whole cent.
    b. At bulk bound printed matter rates, for each zone multiply the 
total unrounded weight of the pieces by the applicable rate per pound 
(round off each product to four decimal places) and multiply the number 
of pieces by the applicable rate per piece without rounding. Add the 
pound and piece charges and round up the total postage to the nearest 
whole cent.

P014  Refunds and Exchanges

[In 2.3, replace ``First-Class, third-class single-piece, and fourth-
class mail'' with ``First-Class Mail, single-piece rate Standard Mail 
(A), or Standard Mail (B)''; in 2.4, replace ``third-class'' with 
``Standard Mail (A)''; in 4.1, replace ``First-Class or bulk third-
class mail'' with ``First-Class Mail or bulk rate Standard Mail (A)''; 
in 4.12a and 4.13a, replace ``3 ounces or less'' with ``less than the 
applicable maximum weight for automation mail prescribed in C810''; in 
4.12c, replace ``ZIP+4 Presort, or one of the Barcoded'' with ``or 
automation''; in 4.13, replace ``[T]hird-[C]lass'' with ``Standard Mail 
(A)''; in 4.13c, replace ``3/5 presort, basic ZIP+4, or one of the 
Barcoded minimum per-piece rates'' with ``Nonprofit 3/5 presort, 
Nonprofit Basic ZIP+4, or one of the Nonprofit Barcoded minimum per 
piece rates, or at Regular 3/5 nonautomation or any automation minimum 
per piece rates, as applicable''; in 4.14, replace ``will be'' with 
``is''; in 4.14c, replace ``sleeve, band, and ACT tag'' with ``sleeve 
and band''; in 4.14d, replace ``First- or third-class'' with ``First-
Class or Standard Mail (A),'' remove 4.14e, redesignate 4.14f as 4.14e 
and replace ``third-class'' with ``Standard Mail (A)''; in 4.15 and 
4.17, replace ``[M]ailing [S]tatement[s]'' with ``[P]ostage 
[S]tatement[s]''; remove 4.17c and redesignate 4.17d and 4.17e as 4.17c 
and 4.17d, respectively; in redesignated 4.17d, replace ``in (b) (and 
(c) and (d), as applicable)'' with ``in 4.17b (and 4.17c, if 
applicable)''; no other change in text.]

P020  Postage Stamps and Stationery

P021  Stationery Bearing Postage

[In 1.1b, replace ``special bulk third-class'' with ``Nonprofit 
Standard Mail''; in 2.5b, replace ``Express, First-, or third-class 
mail'' with ``Express Mail, First-Class Mail, or Standard Mail (A)''; 
in 2.5a, 2.5c, and 2.5d, replace ``third-class,'' ``THIRD-CLASS,'' 
``single-piece rate third-class mail,'' and ``third-class mail'' with 
``Standard Mail (A),'' ``STANDARD MAIL,'' ``single-piece rate Standard 
Mail (A),'' and ``Standard Mail

[[Page 10208]]
(A),'' respectively; no other change in text.]
* * * * *

P023  Precanceled Stamps

[In 1.2, replace ``third-class'' with ``Standard Mail (A)''; in 1.12, 
replace ``Third-Class Mail'' with ``Standard Mail''; in 3.5a, replace 
``third-class mail'' with ``Standard Mail (A)''; no other change in 
text.]

P030  Postage Meters and Meter Stamps

[In 1.4, replace ``second-class'' with ``Periodicals''; in 1.5 and 
1.5c, replace ``special fourth-class'' with ``Special Standard Mail''; 
in 1.5 and 1.5c, replace ``library rate mail'' with ``Library Mail''; 
in 4.8 and 4.9, replace ``third- or [and] fourth-class'' with 
``Standard Mail''; in 4.14, replace ``(e.g., ``Library Rate'')'' with 
``(e.g., ``Presorted'')''; in 5.3a, replace ``First- or third-class 
mail'' with ``First-Class Mail or Standard Mail (A)''; no other change 
in text.]

P040  Permit Imprints

[In 2.5 and 3.5b, replace ``bulk third-class mail'' with ``bulk rate 
Standard Mail (A)''; in 3.2, replace ``[S]econd-[C]lass [M]ail'' with 
``Periodicals''; in 3.3, replace ``[T]hird- and [F]ourth-[C]lass 
[M]ail'' with ``Standard Mail''; in 3.5a, replace ``third- or fourth-
class'' with ``Standard Mail''; in Exhibit 4.1a under the heading 
``First-Class Official Mail,'' replace ``ZIP+4 Presort'' with ``First-
Class Mail AUTO''; in Exhibit 4.1a under the heading ``Third-Class 
Official Mail,'' replace the heading with ``Standard Mail (A) Official 
Mail'' and ``Third-Class Mail'' with ``Standard Mail (A)'' and 
``Carrier Route Presort'' with ``AUTOCR''; in Exhibit 4.1a under the 
heading ``Fourth-Class Official Mail,'' replace the heading with 
``Standard Mail (B) Official Mail'' and ``Fourth-Class Mail'' with 
``Standard Mail (B)'' and ``Special Fourth-Class Rate'' with ``Special 
Standard Mail''; in Exhibit 4.1b under the heading ``First-Class 
Mail,'' no change; in Exhibit 4.1b under the heading ``Third- and 
Fourth-Class Mail (Date and Class Omitted),'' replace the heading with 
``Standard Mail (Date and Class Omitted)'' and ``Library Rate'' with 
``Library Mail''; in Exhibit 4.1b under the heading ``Third-Class Mail 
(Regular Single-Piece and Bulk Rates),'' replace the heading with 
``Standard Mail (A) (Regular Single-Piece and Bulk Rates)'' and delete 
``CAR-RT SORT''; in Exhibit 4.1b under the heading ``Third-Class Mail 
(Authorized Organizations),'' replace the heading with ``Nonprofit 
Standard Mail''; in Exhibit 4.1b under the heading ``Fourth-Class Bulk 
Rate Mail,'' replace the heading with ``Standard Mail (B) Bulk Rate 
Mail,'' ``Fourth-Class'' with ``Standard Mail (B),'' and ``Special 
Fourth-Class Rate'' with ``Special Standard Mail;'' in 5.5, replace 
``mailing statements'' with ``postage statements''; no other change in 
text.]

P070  Mixed Classes

[In 1.1, replace ``second-, third-, or fourth-class'' with 
``Periodicals or Standard Mail''; in 1.1, 1.2, 2.1, 2.2, 2.4, 2.5, 
2.5d, 2.6, 2.6d, 2.7, 2.9, 2.9b, and 3.2, replace ``First- or third-
class'' with ``First-Class or Standard Mail (A)''; in 1.2, 2.2, 2.7, 
2.9b, 3.2, 5.2, and 6.8, replace ``mailing statement'' with ``postage 
statement''; in 1.3, 2.7, and 2.8, replace ``third-class'' with 
``Standard Mail (A)''; in 2.0 (heading), 2.1, 2.2, 2.4, 2.5, 2.6, 2.7, 
2.9, 2.9a, and 4.2, replace ``[S]econd-[C]lass'' with ``Periodicals''; 
in 3.0 (heading), replace ``[T]hird- and [F]ourth-[C]lass'' with 
``Standard Mail''; in 5.0 (heading) and 5.4, replace ``[S]pecial 
[F]ourth-[C]lass'' with ``Special Standard Mail''; no other change in 
text.]

P100  First-Class Mail

* * * * *
2.0  Single-Piece Rates
[In 2.1, remove ``regular.'']
* * * * *
[Insert new 2.5 as follows:]

2.5  Pieces Presented With Automation Rate Mailings

    Fewer than 500 pieces of single-piece rate First-Class Mail with 
postage affixed may be presented with other postage-affixed pieces 
claimed at automation rates, and may be reported on the same postage 
statement as the automation rate pieces, if the single-piece rate 
pieces meet these standards:
    a. The pieces are physically separated from the automation rate 
pieces.
    b. The pieces do not bear the ``AUTO'' rate marking.
    c. The pieces all bear the full correct single-piece rate postage. 
(Additional postage must be affixed to each as necessary.)
* * * * *
[In 3.2, replace ``mailing statement'' with ``postage statement.'']

[Revise 4.0 as follows:]
4.0  Presorted Rates

4.1  Payment Methods

    Postage on mailings made at Presorted First-Class rates must be 
paid with meter stamps, permit imprints, or precanceled postage, 
subject to the corresponding standards. All pieces in a mailing must be 
paid with the same method unless otherwise permitted by standard or 
RCSC authorization.

4.2  Postage Affixed, Generally

    Unless permitted by other standards or RCSC authorization, when 
precanceled postage or meter stamps are used, all pieces in a single 
mailing must bear postage under one of these conditions:
    a. The full correct postage at the First-Class rate for which they 
qualify (no postage documentation is required).
    b. The full correct postage at the lowest First-Class first ounce 
rate applicable to the mailing (or list/job if more than one mailing is 
produced as part of the same list/job) and full postage for any extra 
ounce(s) (postage documentation is required).
    c. Postage in an amount not less than the lowest available First-
Class first ounce letter or card rate (as applicable) if authorized by 
the RCSC, plus full postage for any extra ounce(s) (postage 
documentation is required).

4.3  Additional Postage

    Additional postage for pieces not bearing sufficient postage when 
presented to the USPS (e.g., under 4.2b or 4.2c) must be paid before 
acceptance either using an advance deposit account or with a meter 
strip attached to the postage statement accompanying the mail. When the 
amount affixed is subject to RCSC authorization under 4.2c, credit will 
not be given for postage affixed in excess of the authorized amount.

[Revise 5.0 (heading), 5.1, and 5.2 as follows:]
5.0  Automation Rates

5.1  Payment Methods

    Postage on mailings made at automation rates must be paid with 
meter stamps, permit imprints, or precanceled postage, subject to the 
corresponding standards. All pieces in a mailing must be paid with the 
same method unless otherwise permitted by standard or RCSC 
authorization. Permit imprints may be used for mailings of 
nonidentical-weight pieces only if authorized by the RCSC serving the 
mailing post office.

5.2  Postage Affixed, Generally

    Unless permitted by other standards (e.g., 5.2c) or RCSC 
authorization, when precanceled postage or meter stamps are used, only 
one payment method may be used in a mailing and each piece must bear 
the correct postage at the rate for which it qualifies. In a metered or 
precanceled stamp mailing:
    a. Each piece weighing more than 1 ounce must bear the correct 
amount of

[[Page 10209]]
additional postage to pay for the additional ounces.
    b. Flat-size pieces must bear enough postage to include the 
nonstandard surcharge if applicable.
    c. Each piece may bear postage at the lowest rate applicable to 
pieces in the mailing if all additional postage is paid at the time of 
mailing with an advance deposit account or with a meter strip affixed 
to the required postage statement.
    d. Documentation meeting the standards in P012 must be presented 
with the postage statement to show the number of pieces at each rate 
and the computation of the additional postage due for pieces not 
bearing full postage at the applicable rate (i.e., the difference 
between what the pieces bear and the correct postage at the rate for 
which each qualifies).

[In 5.3b, 5.3c, 5.4c, 5.4d, and 5.5, replace ``mailing statement'' with 
``postage statement.'']
* * * * *
[Revise the heading of P200 as follows:]

P200  Periodicals

[In 1.3, 1.4, 1.9, 1.11, 1.12, and 2.4, replace ``second-class [mail]'' 
with ``Periodicals''; in 1.4 and 1.9, replace ``third- or fourth-
class'' with ``Standard Mail''; in 1.3, 1.5, 1.6, 1.9, 1.10, 2.1, 2.2, 
and 2.4, replace ``mailing statement'' with ``postage statement''; 
revise other sections as follows:]
* * * * *
[Revise 2.0 (heading) and 2.4 as follows:]
2.0  Monthly Postage Statement
* * * * *

2.4  Waiving Nonadvertising Rates

[Revise the first sentence as follows:]

    Instead of marking a copy of each issue to show the advertising and 
nonadvertising portions, the publisher may pay postage at the 
advertising zone rates on both portions of all issues or editions of a 
Periodicals publication (except a requester publication). * * *
* * * * *
[Remove current 3.0 (key rates were eliminated on November 1, 1995); 
renumber current 4.0 as 3.0; in renumbered 3.0, replace ``second-
class'' with ``Periodicals'' and remove the last sentence.]

[Remove P300.1.0; move P300.2.0 and P300.3.0 to new P600.2.0 and 
P600.3.0, respectively.]

[Remove P400.]

[No change to P500.]

[Insert new P600, based on current P300 and P400, as follows:]

P600  Standard Mail

1.0  Basic Information

1.1  Payment Method

    Subject to the corresponding standards, postage for single-piece 
rate Standard Mail may be paid by any method; postage for bulk rate 
Standard Mail may be paid with meter or permit imprints. Postage for 
bulk rate Standard Mail (A) may also be paid with precanceled stamps. 
Postage-affixed pieces must bear the correct postage unless excepted by 
standard. A permit imprint may be used for mailings of nonidentical-
weight pieces only if authorized by the RCSC serving the mailing 
office. The mailer is responsible for proper payment of postage.

1.2  Postage Statement

    The mailer must submit a complete and signed postage statement, as 
specified in P012, with every Standard Mail mailing for which postage 
is paid with a permit imprint or claimed at any bulk rate.

1.3  Pieces Presented With Automation Rate Mailings

    Fewer than 200 pieces of single-piece rate Standard Mail (A) with 
postage affixed may be presented with other postage-affixed pieces 
claimed at automation rates, and may be reported on the same postage 
statement as the automation rate pieces, if the single-piece rate 
pieces meet these standards:
    a. The pieces are physically separated from the automation rate 
pieces.
    b. The pieces do not bear the ``AUTO'' rate marking.
    c. The pieces all bear the full correct single-piece rate postage. 
(Additional postage must be affixed to each as necessary.)

[Insert text of current P300.2.0; revise as follows:]
2.0  Nonautomation Rates

2.1  Identical-Weight Pieces

    Bulk mailings of identical-weight pieces may have postage affixed 
at the 3/5 rate to each piece in the mailing with additional postage 
for pieces subject to the Basic rate paid either by an advance deposit 
account or with a meter strip affixed to the back of the accompanying 
postage statement. The 3/5 rate pieces and carrier route or walk-
sequence rate pieces may not be part of the same mailing and (except 
under D600) may not be reported on the same postage statement.

[In 2.2, replace ``mailing statement'' with ``postage statement.'']
* * * * *
[Insert text of current P300.3.0; in 3.1, 3.2a, 3.2b, 3.3b, 3.3c, 3.4c, 
3.4d, and 3.5, replace ``mailing statement'' with ``postage 
statement''; revise as follows:]
3.0  Automation Rates

3.1  Method

[Revise the first sentence as follows:]

    Postage on mailings made at all automation rates (including 
Nonprofit ZIP+4 and Barcoded rates) must be paid with meter stamps, 
permit imprints, or precanceled postage, under applicable standards. * 
* *
* * * * *

P700  Special Postage Payment Systems

P710  Manifest Mailing System (MMS)

[In 1.0, replace ``second-class'' with ``Periodicals''; in 2.2a, 2.2b, 
2.7, 2.8, and 2.8c, replace ``mailing statement'' with ``postage 
statement''; in 2.6 and 3.1, replace ``First- or third-class [mail]'' 
with ``First-Class or Standard Mail (A)''; in Exhibit 3.1, replace 
``Third-Class Mail'' with ``Standard Mail (A); in 4.2c, replace 
``mailing statement'' with ``postage statement.'']
* * * * *
3.0  Keyline
* * * * *
[Combine and revise current 3.3 and 3.4 as shown below and renumber 
current 3.5 as 3.4 and 3.6 as 3.5.]

3.3  Rate Category Abbreviations--Letter-Size and Flat-Size Mail

    Keylines on letter-size First-Class Mail or bulk Standard Mail (A) 
may use only the rate category abbreviations in Exhibit 3.3a or Exhibit 
3.3b, respectively. All pieces that qualify for more than one postage 
rate must show each rate category abbreviation, separated by a ``/'' 
(slash) (e.g., ZP/DS).
Exhibit 3.3a

              Rate Category Abbreviations--First-Class Mail             
------------------------------------------------------------------------
              Code                             Rate category            
------------------------------------------------------------------------
AC                                Automation Carrier Route [letters     
                                   only].                               
AV                                Automation 5-Digit [letters only].    
AT                                Automation 3-Digit [letters only].    
AF                                Automation 3/5 [flats only].          
AB                                Automation Basic.                     
FP                                Presorted.                            
------------------------------------------------------------------------
SP                                Single-Piece Rate (when fewer than 500
                                   pieces accompany automation rate     
                                   mail).                               
------------------------------------------------------------------------


[[Page 10210]]


Exhibit 3.3b

             Rate category Abbreviations--Standard Mail (A)             
------------------------------------------------------------------------
              Code                             Rate Category            
------------------------------------------------------------------------
AV                                Automation 5-Digit [letters only].    
AT                                Automation 3-Digit [letters only].    
AF                                Automation 3/5 [flats only].          
AB                                Automation Basic.                     
RA                                Regular 3/5.                          
RB                                Regular Basic.                        
EA                                Enhanced Carrier Route Automation     
                                   Basic [letters only].                
EB                                Enhanced Carrier Route Basic.         
EH                                Enhanced Carrier Route High Density.  
ES                                Enhanced Carrier Route Saturation.    
ZB                                Nonprofit 5-Digit Barcoded.           
TB                                Nonprofit 3-Digit Barcoded.           
BB                                Nonprofit Basic Barcoded.             
ZP                                Nonprofit 3/5 ZIP+4.                  
ZN                                Nonprofit Basic ZIP+4.                
ST                                Nonprofit Saturation Walk Sequence.   
WS                                Nonprofit 125-Piece Walk Sequence.    
CP                                Nonprofit Carrier Route.              
FD                                Nonprofit 3/5.                        
BA                                Nonprofit Basic.                      
DB                                Destination BMC.                      
DS                                Destination SCF.                      
DD                                Destination Delivery Unit.            
------------------------------------------------------------------------
SP                                Single-Piece Rate (when fewer than 200
                                   pieces accompany automation rate     
                                   mail).                               
------------------------------------------------------------------------

* * * * *

P720  Optional Procedure (OP) Mailing System

[In 1.1, replace ``First-, third-, and fourth-class'' with ``First-
Class and Standard Mail''; in 3.1 and 3.2, replace ``mailing 
statement'' with ``postage statement''; no other change in text.]
* * * * *

P750  Plant-Verified Drop Shipment (PVDS)

[In 1.1, 1.2b, 1.3a, 2.4, 2.6, 2.12a, and 5.1, replace ``[S]econd-class 
[mail]'' with ``Periodicals''; in 1.2c, 2.5, and 2.11, replace 
``[T]hird- and [F]ourth-[C]lass [Mail]'' with ``Standard Mail''; in 
1.3b, 2.2e, and 2.5, replace ``third- or fourth-class'' with ``Standard 
Mail''; in 1.4, 2.2d, 2.2e, 2.6, 2.7, 2.8, 2.10, 6.2, 6.3a, 6.4, 6.5, 
7.1, 7.2, 7.3, 7.4, 7.4a, 7.4b, 7.4c, 7.4d, 7.5, 7.6, 7.7, 7.7a, 7.7f, 
7.8, 7.9, 7.10, 7.11, and 7.12, replace ``mailing statement'' with 
``postage statement''; in 2.7, 2.9, 2.12b, 5.2, and 6.0 (heading), 
replace [T]hird-[C]lass [Mail]'' with ``Standard Mail (A)''; in 2.8, 
2.12c, 5.3, 7.0 (heading), and 7.2, replace ``[F]ourth-[C]lass [Mail]'' 
with ``Standard Mail (B)''; in 1.4, replace ``(or 8125-PV)'' with ``(or 
Form 8125-PV)''; in 2.11, replace the reference ``C042'' with ``C023''; 
no other change in text.]

[Revise the heading of P760 as follows:]

P760  First-Class or Standard Mail Mailings With Different Postage 
Payment Methods

[In 1.1 and 4.1, replace ``First- or third-class'' with ``First-Class 
or Standard Mail (A)''; in 1.5c, 1.5e, 4.1a, 4.1b, 4.2, 4.3, 4.5, and 
4.7, replace ``mailing statement'' with ``postage statement''; in 3.1e, 
3.2, and 3.3a, replace ``third-class'' with ``Standard Mail (A)''; in 
Exhibit 4.6, replace ``First-Class and Third-Class ZIP+4 Barcoded,'' 
``ZIP+4 Barcoded,'' and ``3rd'' with ``First-Class and Standard Mail 
Automation and Barcoded''; ``Automation or Barcoded,'' and ``STD,'' 
respectively; in Exhibit 4.6 under part A (section 2), replace ``3600-
PC'' and ``3602-PC'' with ``3600-P'' and ``3602-PR,'' respectively; add 
``3602-PN''; in Exhibit 4.6 under part A (section 3), replace ``3600-
PC'' and ``3602-PC'' with ``3600-P'' and ``3602-PR,'' respectively; add 
``3602-PN''; revise 2.0 as shown below; no other change in text.]
* * * * *
2.0  Postage

2.1  Metered Pieces--First-Class Mail

    Metered pieces in a combined mailing must bear postage for the 
first ounce at the Presorted rate or at an automation rate for which 
the pieces are eligible and, if applicable, the full amount of postage 
due for additional ounces. Additional postage due for metered pieces in 
a combined mailing is deducted from the mailer's postage due advance 
deposit account. Full postage must be affixed to accompanying single-
piece rate mail.

2.2  Metered Pieces--Standard Mail (A)

    Metered pieces in a combined mailing must bear postage at a Regular 
nonautomation presort or automation rate (or, in combined Nonprofit 
mailings only, at a Nonprofit presort, ZIP+4, or Barcoded rate) for 
which the pieces are eligible. Additional postage due for metered 
pieces in a combined mailing is deducted from the mailer's postage due 
advance deposit account. Full postage must be affixed to accompanying 
single-piece rate mail.

2.3  Precanceled Pieces--First-Class Mail

    Pieces with precanceled stamps in a combined mailing must bear 
postage for the first ounce in any denomination of precanceled stamp 
permitted in a Presorted or automation rate mailing and the full 
applicable amount of postage due for additional ounces. Additional 
postage due for precanceled stamp pieces in a combined mailing is 
deducted from the mailer's postage due advance deposit account. Full 
postage must be affixed to accompanying single-piece rate mail.

2.4  Precanceled Pieces--Standard Mail (A)

    Pieces with precanceled stamps in a combined mailing must bear 
postage in any denomination of precanceled stamp permitted in a Regular 
automation rate or Nonprofit Barcoded rate mailing. Nonprofit postage 
may appear only on pieces in a Nonprofit rate mailing that are eligible 
for and claimed at a Nonprofit rate. Additional postage due for 
precanceled stamp pieces in a combined mailing is deducted from the 
mailer's postage due advance deposit account. Full postage must be 
affixed to accompanying single-piece rate mail.

2.5  Permit Imprint--First-Class and Standard Mail (A)

    Pieces in a combined mailing may bear the permit imprint of the 
mailer or the mailer's clients. Postage for the permit imprint part of 
a combined mailing must be paid by the permit imprint advance deposit 
account maintained for combined mailings. Postage is deducted only from 
this account, regardless of the permit numbers or company permit 
imprints on pieces in a combined mailing.
* * * * *
R  Rates and Fees

R000  Stamps and Stationery

1.0  Plain Stamped Envelopes

----------------------------------------------------------------------------------------------------------------
                                                                                     Quantity and Price         
                                                             Denomination --------------------------------------
                     Type                         Size \1\     or Value     Each (less                          
                                                                            than 500)       500         1,000   
----------------------------------------------------------------------------------------------------------------
Regular.......................................        6-3/4         $0.32        $0.38      $168.20      $336.40
                                                         10          0.32         0.38       172.00       344.00
Single Window.................................        6-3/4          0.32         0.38       169.00       338.00
                                                         10          0.32         0.38       173.00       346.00

[[Page 10211]]
                                                                                                                
Special Regular \2\...........................        6-3/4          0.32         0.38       170.50       341.00
                                                         10          0.32         0.38       175.00       350.00
Bulk Rate Regular.............................           10          0.10  ...........        62.00       124.00
Nonprofit Regular.............................        6-3/4          0.05  ...........        33.20        66.40
                                                         10          0.05  ...........        37.00        74.00
Nonprofit Single Window.......................        6-3/4          0.05  ...........        34.00        68.00
                                                         10          0.05  ...........        38.00        76.00
----------------------------------------------------------------------------------------------------------------
\1\ Size 10 includes all intermediate sizes through 10.                                                         
\2\ Envelopes with multicolor indicia such as a Love stamp or a hologram.                                       


2.0  Personalized Stamped Envelopes

----------------------------------------------------------------------------------------------------------------
                                                                                     Quantity and Price         
                     Type                          Size 1    Denomination --------------------------------------
                                                               or Value         50          500         1,000   
----------------------------------------------------------------------------------------------------------------
Regular.......................................      6-\3/4\         $0.32       $19.00      $172.60      $345.20
                                                         10          0.32        19.20       176.40       352.80
Single Window.................................      6-\3/4\          0.32        19.10       173.40       346.80
                                                         10          0.32        19.30       177.40       354.80
Special Regular 2.............................      6-\3/4\          0.32        19.00       174.90       349.80
                                                         10          0.32        19.20       179.40       358.80
Bulk Rate Regular.............................           10          0.10  ...........        66.40       132.80
Nonprofit Regular.............................      6-\3/4\          0.05  ...........        37.60        75.20
                                                         10          0.05  ...........        41.40        82.80
Nonprofit Single Window.......................      6-\3/4\          0.05  ...........        38.40        76.80
                                                         10          0.05  ...........        42.40        84.80
----------------------------------------------------------------------------------------------------------------
1 Size 10 includes all intermediate sizes through 10.                                                           
2 Envelopes with a multicolor indicia such as a Love stamp or a hologram.                                       

3.0  Postal Cards
    Postal cards in sheets, per sheet: $8.00.

------------------------------------------------------------------------
               Denomination                          Description        
------------------------------------------------------------------------
$0.20.....................................  Domestic regular or         
                                             commemorative, cut single  
                                             card.                      
0.20......................................  Domestic regular, sheet of  
                                             40.                        
0.40......................................  Domestic regular, double    
                                             reply-paid card.           
------------------------------------------------------------------------

4.0  Postage Stamps

------------------------------------------------------------------------
           Purpose                    Form              Denomination    
------------------------------------------------------------------------
Regular Postage.............  Panes of up to 100..  $0.01, .02, .03,    
                                                     .04, .05, .10, .20,
                                                     .23, .25, .29, .30,
                                                     .32, .35, .40, .45,
                                                     .46, .50, .52, .55,
                                                     .60, .75, .78, $1, 
                                                     $2, $3, $5, $10.75.
                              Booklets............  $0.20 ($2.00        
                                                     booklet).          
                                                    $0.32 ($3.20 or     
                                                     $6.40 booklets).   
                              Coils of 100........  $0.20, .23          
                                                     (additional ounce  
                                                     postage), .32.     
                              Coils of 500........  $0.01, .02, .03,    
                                                     .04, .05, .10, .20,
                                                     .23, .32, $1.      
                              Coils of 3,000......  $0.01, .02, .03,    
                                                     .04, .05, .10, .20,
                                                     .23, .32.          
                              Coils of 10,000.....  $0.05, .32.         
Precanceled Bulk Rate         Coils of 500, 3,000,  Various             
 Postage--First-Class and      and 10,000.           nondenominated     
 Standard Mail (A).                                  (available only to 
                                                     permit holders).   
Commemorative...............  Panes of up to 50...  $0.32 and other     
                                                     denominations.     
                              20-Stamp Booklets...  $0.32 ($6.40        
                                                     booklets).         
------------------------------------------------------------------------

R100  First-Class Mail

1.0  Single-Piece

1.1  Cards

    Single and double postal cards and postcards meeting the standards 
in C100 and E110:

------------------------------------------------------------------------
                   Type                                 Rate            
------------------------------------------------------------------------
Single....................................  $0.20.                      
Double....................................  0.40 ($0.20 each part).     
------------------------------------------------------------------------

1.2  Letters, Flats, and Parcels

    Letters, flats, and parcels (i.e., matter not eligible for card 
rates); surcharge might apply under 9.0:

------------------------------------------------------------------------
                       Weight increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce..........................      $0.32
Each additional ounce or fraction of an ounce................       0.23
------------------------------------------------------------------------


[[Page 10212]]


2.0  Nonautomation--Presorted

2.1  Cards

    Single and double postcards meeting the standards in C100 and E110: 
$0.180 each.

2.2  Letters, Flats, and Parcels

    Letters, flats, and parcels (i.e., matter not eligible for card 
rates); surcharge might apply under 9.0:

------------------------------------------------------------------------
                       Weight increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.295
(For pieces weighing more than 2 ounces).....................      0.249
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

3.0  Automation--Basic

3.1  Cards

    Single and double postcards meeting the standards in C100 and E110: 
$0.166 each.

3.2  Letters

    Letter-size pieces other than cards:

------------------------------------------------------------------------
                       Weight increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.261
(For pieces weighing more than 2 ounces).....................      0.215
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

3.3  Flats

    Flat-size pieces; surcharge might apply under 9.0:

------------------------------------------------------------------------
                       Weight increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.290
(For pieces weighing more than 2 ounces).....................      0.244
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

4.0  Automation--3-Digit

4.1  Cards

    Single and double postcards meeting the standards in C100 and E110: 
$0.159 each.

4.2  Letters

    Letter-size pieces other than cards:

------------------------------------------------------------------------
                       Weight increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.254
(For pieces weighing more than 2 ounces).....................      0.208
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

5.0  Automation--5-Digit

5.1  Cards

    Single and double postcards meeting the standards in C100 and E110: 
$0.143 each.

5.2  Letters

    Letter-size pieces other than cards:

------------------------------------------------------------------------
                       Weight Increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.238
(For pieces weighing more than 2 ounces).....................      0.192
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

6.0  Automation--\3/5\ (Flat-Size Pieces)
    Flat-size pieces; surcharge might apply under 9.0:

------------------------------------------------------------------------
                       Weight Increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.270
(For pieces weighing more than 2 ounces).....................      0.224
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------

7.0  Automation--Carrier Route

7.1  Cards

    Single and double postcards meeting the standards in C100 and E110: 
$0.140 each.

7.2  Letters

    Letter-size pieces other than cards:

------------------------------------------------------------------------
                       Weight Increment                           Rate  
------------------------------------------------------------------------
First ounce or fraction of an ounce:                                    
(For pieces weighing not more than 2 ounces).................      0.230
(For pieces weighing more than 2 ounces).....................      0.184
Each additional ounce or fraction of an ounce................      0.230
------------------------------------------------------------------------


----------------------------------------------------------------------------------------------------------------
                                       Nonautomation                           Automation                       
                                   -----------------------------------------------------------------------------
Letters, Flats, and Parcels Weight                                                     Carrier                  
         Not Over (ounces)          Single-               Basic    3-digit   5-digit    Route    Basic     3/5  
                                     Piece   Presorted  (Letter-  (Letter-  (Letter-  (Letter-   (Flat-   (Flat-
                                                          Size)     Size)     Size)     Size)    Size)    Size) 
----------------------------------------------------------------------------------------------------------------
1\1\..............................    $0.32    $0.295     $0.261    $0.254    $0.238    $0.230   $0.290   $0.270
2.................................     0.55     0.525      0.491     0.484     0.468     0.460    0.520    0.500
3 \2\.............................     0.78     0.709      0.675     0.668     0.652     0.644    0.704    0.684
4.................................     1.01     0.939   \3\ 0.90                                                
                                                               5  \3\ 0.89                                      
                                                                         8  \3\ 0.88                            
                                                                                   2  \3\ 0.87                  
                                                                                             4    0.934    0.914
5.................................     1.24     1.169                                             1.164    1.144
6.................................     1.47     1.399                                             1.394    1.374
7.................................     1.70     1.629                                             1.624    1.604
8.................................     1.93     1.859                                             1.854    1.834
9.................................     2.16     2.089                                             2.084    2.064
10................................     2.39     2.319                                             2.314    2.294
11................................     2.62     2.549                                             2.544    2.524
Postcards \4\                                                                                                   
Postal Cards \4\                                                                                                
Single............................    $0.20    $0.180     $0.166    $0.159    $0.143    $0.140                  
Double............................     0.40                                                                     
----------------------------------------------------------------------------------------------------------------
\1\ Surcharge might apply.                                                                                      
\2\ Presorted and automation rates for pieces weighing over 2 ounces reflect a first-ounce rate that is $0.046  
  lower than for pieces weighing 2 ounces or less; see 2.0 through 7.0.                                         
\3\ Weight not to exceed 3.4383 ounces; pieces over 3 ounces subject to additional standards.                   

[[Page 10213]]
                                                                                                                
\4\ Rates shown apply to each single or double postcard when originally mailed; reply half of double postcard   
  must bear postage at applicable rate when returned unless prepared as business reply mail.                    



Summary of First-Class Rates

[Renumber current 10.0 as 8.0 and Exhibit 10.0a and Exhibit 10.0b as 
Exhibit 8.0a and Exhibit 8.0b, respectively.]
8.0  Priority Mail
    See Exhibit 8.0a and Exhibit 8.0b.

[Renumber current 11.0 as 9.0; revise text as follows:]
9.0  Nonstandard Surcharge
    Surcharge per piece:
    a. Single-piece rate: $0.11.
    b. Nonautomation presort and automation rates (flat-size): $0.05.

[Combine current 12.0, 13.0, and 14.0 and renumber as 10.0; revise text 
as follows:]
10.0  Fees

10.1  Mailing

    Presort fee, per 12-month period, per office of mailing: $85.00.

10.2  Address Correction Service

    Charge per notice issued:
    a. Manual: $0.50.
    b. Automated: $0.20.

10.3  Pickup

    Priority Mail only, per occurrence: $4.95.

R200  Periodicals

1.0  Regular

1.1  Pound Rates

    Per pound or fraction:
    a. For the nonadvertising portion: $0.161.
    b. For the advertising portion:

------------------------------------------------------------------------
                             Zone                                 Rate  
------------------------------------------------------------------------
Delivery Unit................................................     $0.169
SCF..........................................................      0.190
1 & 2........................................................      0.214
3............................................................      0.224
4............................................................      0.251
5............................................................      0.292
6............................................................      0.336
7............................................................      0.388
8............................................................      0.432
------------------------------------------------------------------------

1.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                       Automation \1\   
                                                   ---------------------
           Presort Level             Nonautomation   Letter-            
                                                       Size    Flat-Size
------------------------------------------------------------------------
Basic..............................       $0.240       $0.194     $0.209
3/5................................        0.202        0.173      0.175
Carrier Route......................        0.119                        
High Density.......................        0.111                        
Saturation.........................        0.095                        
------------------------------------------------------------------------
\1\ Weight limits apply.                                                

1.3  Discounts

    Piece rate discounts:
    a. Nonadvertising adjustment for each 1% of nonadvertising content: 
$0.00057 per piece.
    b. Delivery unit zone piece discount for each addressed piece 
claimed in the pound rate portion at the delivery unit zone rate: 
$0.021.
    c. SCF zone piece discount for each addressed piece claimed in the 
pound rate portion at the SCF zone rate: $0.011.
* * * * *
5.0  Science-of-Agriculture

5.1  Pound Rates

    Per pound or fraction:
    a. For the nonadvertising portion: $0.161.
    b. For the advertising portion:

------------------------------------------------------------------------
                             Zone                                 Rate  
------------------------------------------------------------------------
Delivery Unit................................................     $0.127
SCF..........................................................      0.143
1 & 2........................................................      0.161
3............................................................      0.224
4............................................................      0.251
5............................................................      0.292
6............................................................      0.336
7............................................................      0.388
8............................................................      0.432
------------------------------------------------------------------------

5.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                       Automation \1\   
                                                   ---------------------
           Presort Level             Nonautomation   Letter-            
                                                       Size    Flat-Size
------------------------------------------------------------------------
Basic..............................       $0.240       $0.194     $0.209
3/5................................        0.202        0.173      0.175
Carrier Route......................        0.119    .........  .........
High Density.......................        0.111    .........  .........
Saturation.........................        0.095    .........  .........
------------------------------------------------------------------------
\1\ Weight limits apply.                                                

5.3  Discounts

    Piece rate discounts:
    a. Nonadvertising adjustment for each 1% of nonadvertising content: 
$0.00057 per piece.
    b. Delivery unit zone piece discount for each addressed piece 
claimed in the pound rate portion at the delivery unit zone rate: 
$0.021.
    c. SCF zone piece discount for each addressed piece claimed in the 
pound rate portion at the SCF zone rate: $0.011.
6.0  Fees

6.1  Application

    Fee, as appropriate, per application:
    
[[Page 10214]]

    a. Original entry: $305.00.
    b. News agent registry: $50.00.
    c. Additional entry: $85.00.
    d. Reentry: $50.00.

6.2  Address Correction Service

    Charge per notice issued:
    a. Manual: $0.50.
    b. Automated: $0.20.
* * * * *
[Redesignate text of current R300 and R400 as parts of new R600 and 
revise as shown below; no change in R500.]

R600  Standard Mail

1.0  Single-Piece (Standard Mail (A))

------------------------------------------------------------------------
                            Weight                                Rate  
------------------------------------------------------------------------
Not over 1 oz \1\............................................      $0.32
Over 1 oz., but not over 2 oz................................       0.55
Over 2 oz., but not over 3 oz................................       0.78
Over 3 oz., but not over 4 oz................................       1.01
Over 4 oz., but not over 5 oz................................       1.24
Over 5 oz., but not over 6 oz................................       1.47
Over 6 oz., but not over 7 oz................................       1.70
Over 7 oz., but not over 8 oz................................       1.93
Over 8 oz., but not over 9 oz................................       2.16
Over 9 oz., but not over 10 oz...............................       2.39
Over 10 oz., but not over 11 oz..............................       2.62
Over 11 oz., but not over 13 oz..............................       2.90
Over 13 oz., but under 16 oz.................................       2.95
------------------------------------------------------------------------
\1\ Surcharge might apply.                                              

2.0  Keys and Identification Devices

------------------------------------------------------------------------
                            Weight                                Rate  
------------------------------------------------------------------------
Not over 2 oz................................................      $0.99
Over 2 oz., but not over 4 oz................................       1.54
Over 4 oz., but not over 6 oz................................       2.09
Over 6 oz., but not over 8 oz................................       2.64
Over 8 oz., but not over 10 oz...............................       3.19
Over 10 oz., but not over 12 oz..............................       3.74
Over 12 oz., but not over 14 oz..............................       4.29
Over 14 oz., but under 16 oz.................................       4.84
------------------------------------------------------------------------

3.0  Regular

3.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2068 lb. (3.3087 
oz.) or Less

----------------------------------------------------------------------------------------------------------------
                                                               Nonautomation               Automation 1         
                      Entry discount                      ------------------------------------------------------
                                                             Basic       3/5       Basic     3-digit    5-digit 
----------------------------------------------------------------------------------------------------------------
None.....................................................     $0.256     $0.209     $0.183     $0.175     $0.155
DBMC.....................................................      0.243      0.196      0.170      0.162      0.142
DSCF.....................................................      0.238      0.191      0.165      0.157      0.137
DDU......................................................  .........  .........  .........  .........  .........
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              

3.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2068 lb. 
(3.3087 oz.) or Less

------------------------------------------------------------------------
                                  Nonautomation        Automation \1\   
       Entry Discount        -------------------------------------------
                                Basic       3/5       Basic       3/5   
------------------------------------------------------------------------
None........................     $0.306     $0.225     $0.277     $0.189
DBMC........................      0.293      0.212      0.264      0.176
DSCF........................      0.288      0.207      0.259      0.171
------------------------------------------------------------------------
\1\ Available only for automation-compatible flats.                     

3.3  Piece/Pound Rates--Pieces More Than 0.2068 lb. (3.3087 oz.)

------------------------------------------------------------------------
                                  Nonautomation        Automation \2\   
    Piece/Pound Rate \1\     -------------------------------------------
                                Basic       3/5       Basic       3/5   
------------------------------------------------------------------------
Per Piece...................     $0.166     $0.085     $0.137     $0.049
Per Pound (includes entry                                               
 discount if applicable)....       PLUS       PLUS       PLUS       PLUS
None........................      0.677      0.677      0.677      0.677
DBMC........................      0.613      0.613      0.613      0.613
DSCF........................      0.592      0.592      0.592      0.592
------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.        
\2\ Available only for automation-compatible flats.                     

4.0  Enhanced Carrier Route

4.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2066 lb. (3.3062 
oz.) or Less

----------------------------------------------------------------------------------------------------------------
                                                                              Nonautomation           Automation
                                                                   ---------------------------------------------
                          Entry Discount                                          High                          
                                                                    Basic \1\   Density   Saturation   Basic \1\
----------------------------------------------------------------------------------------------------------------
None..............................................................     $0.150     $0.142      $0.133      $0.146

[[Page 10215]]
                                                                                                                
DBMC..............................................................      0.137      0.129       0.120       0.133
DSCF..............................................................      0.132      0.124       0.115       0.128
DDU...............................................................      0.127      0.119       0.110       0.123
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              



4.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2066 lb. 
(3.3062 oz.) or Less

------------------------------------------------------------------------
                                                      High              
            Entry Discount                Basic     Density   Saturation
------------------------------------------------------------------------
None..................................     $0.155     $0.147      $0.137
DBMC..................................      0.142      0.134       0.124
DSCF..................................      0.137      0.129       0.119
DDU...................................      0.132      0.124       0.114
------------------------------------------------------------------------

4.3  Piece/Pound Rates--Pieces More Than 0.2066 lb. (3.3062 oz.)

------------------------------------------------------------------------
                                                      High              
         Piece/Pound Rate \1\             Basic     Density   Saturation
------------------------------------------------------------------------
Per Piece.............................     $0.018     $0.010      $0.000
Per Pound (includes entry discount if                                   
 applicable)..........................       PLUS       PLUS        PLUS
None..................................      0.663      0.663       0.663
DBMC..................................      0.599      0.599       0.599
DSCF..................................      0.578      0.578       0.578
DDU...................................      0.552      0.552       0.552
------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.        

5.0  Nonprofit

5.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2149 lb. (3.4383 
oz.) or Less

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Nonautomation                                     Automation \1\                   
                                                     ---------------------------------------------------------------------------------------------------
                   Entry Discount                                            Carrier   Saturation    Basic                 Basic     3-Digit    5-Digit 
                                                        Basic       3/5       Route        W S       ZIP+4    3/5 ZIP+4   Barcoded   Barcoded   Barcoded
--------------------------------------------------------------------------------------------------------------------------------------------------------
None................................................     $0.124     $0.111     $0.086      $0.083     $0.117     $0.107     $0.106     $0.101     $0.093
DBMC................................................      0.112      0.099      0.074       0.071      0.105      0.095      0.094      0.089      0.081
DSCF................................................      0.106      0.093      0.068       0.065      0.099      0.089      0.088      0.083      0.075
DDU.................................................  .........  .........      0.063       0.060                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Lower weight limits might apply.                                                                                                                    

5.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2149 lb. 
(3.4383 oz.) or Less

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Nonautomation                                          Automation \1\                   
                                          --------------------------------------------------------------------------------------------------------------
              Entry Discount                                      Carrier   125-Piece  Saturation    Basic                 Basic     3-Digit      3/5   
                                             Basic       3/5       Route        W S        W S       ZIP+4    3/5 ZIP+4   Barcoded   Barcoded   Barcoded
--------------------------------------------------------------------------------------------------------------------------------------------------------
None.....................................     $0.175     $0.161     $0.128     $0.126      $0.121  .........  .........     $0.149  .........     $0.143
DBMC.....................................      0.163      0.149      0.116      0.114       0.109  .........  .........      0.137  .........      0.131
DSCF.....................................      0.157      0.143      0.110      0.108       0.103  .........  .........      0.131  .........      0.125
DDU......................................  .........  .........      0.105      0.103       0.098                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Available only for automation-compatible flats.                                                                                                     

5.3  Piece/Pound Rates--Pieces More Than 0.2149 lb. (3.4383 oz.)

[[Page 10216]]


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Nonautomation                                          Automation \2\                   
                                          --------------------------------------------------------------------------------------------------------------
           Piece/Pound Rate\1\                                    Carrier   125-Piece  Saturation    Basic                 Basic     3-Digit      3/5   
                                             Basic       3/5       Route        W S        W S       ZIP+4    3/5 ZIP+4   Barcoded   Barcoded   Barcoded
--------------------------------------------------------------------------------------------------------------------------------------------------------
Per Piece................................     $0.074     $0.060     $0.027     $0.025      $0.020  .........  .........     $0.048  .........     $0.042
Per Pound (includes entry discount if                                                                                                                   
 applicable).............................       PLUS       PLUS       PLUS       PLUS        PLUS  .........  .........       PLUS  .........       PLUS
None.....................................      0.470      0.470      0.470      0.470       0.470  .........  .........      0.470  .........      0.470
DBMC.....................................      0.410      0.410      0.410      0.410       0.410  .........  .........      0.410  .........      0.410
DSCF.....................................      0.386      0.386      0.386      0.386       0.386  .........  .........      0.386  .........      0.386
DDU......................................  .........  .........      0.362      0.362       0.362                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.                                                                                        
\2\ Available only for automation-compatible flats.                                                                                                     

6.0  Parcel Post
[Insert text and rates from current R400.1.0 with no change.]
7.0  Bound Printed Matter

7.1 Single-Piece

[Insert text and rates from current R400.2.0 with no change.]

7.2  Bulk

[Insert text and rates from current R400.3.0 with no change.]

7.3  Bulk Rate Computed Postage Amount With Postage Affixed

[Insert text and rates from current R400.4.0 with no change.]
8.0  Special Standard Mail
[Insert text and rates from current R400.5.0 with no change.]
9.0  Library Mail
[Insert text and rates from current R400.6.0 with no change.]
10.0  Fees

10.1  Mailing Fees

    Fee, as appropriate, per 12-month period:
    a. Regular, Enhanced Carrier Route, and Nonprofit rates: $85.00.
    b. Parcel post destination BMC rate: $85.00.
    c. Presorted Special Standard Mail: $85.00.

10.2  Address Correction Service

    Charge per notice issued:
    a. Manual: $0.50.
    b. Automated: $0.20.

10.3  Pickup

    Parcel post only, per occurrence: $4.95.
11.0  Nonstandard Surcharge
    Single-piece rate Standard Mail (A) only, per piece: $0.11.
S  Special Services

S000  Miscellaneous Services

* * * * *
[Revise the heading of S020 as follows:]

S020  Money Orders and Other Services

[Revise the headings of 1.0, 2.0, and 3.0 as ``Issuing Money Orders,'' 
``Cashing Money Orders,'' and ``Use of Federal Reserve System,'' 
respectively.]

[Add new 4.0, based on S030.1.0, as follows:]
4.0  Nonpostal Services

4.1  Bird Stamps

    Migratory-bird hunting and conservation stamps (``bird stamps'') 
are required by federal law for the hunting of migratory birds, such as 
ducks and geese. As a public convenience, these stamps are sold at all 
post offices in CAGs A through J and, based on demand, at designated 
offices in CAGs K and L. These post offices act as agents of the 
federal government for this function. Blocks composed of two or more 
attached unused stamps, sold on consignment to any person but not 
resold, may be redeemed at any time on or before the last day of the 
stamp year. Stamps may not be redeemed if they are validated by 
signature or appear removed from a hunting license or identification 
card.

[Redesignate current S030.2.0, S030.3.0, and S030.4.0 as S020.4.2, 
S020.4.3, and S020.4.4, respectively; no other change in text; remove 
current S030.]

S070  Mixed Classes

[In 1.1, replace ``third- or fourth-class mail'' with ``Standard 
Mail''; in 1.2, replace ``third- and fourth-class'' with ``Standard 
Mail''; no other change in text.]

S500  Special Services for Express Mail

[In 3.0, replace ``third- or fourth-class'' with ``Standard Mail''; no 
other change in text.]

S900  Special Postal Services

* * * * *

S913  Insured Mail

[In 1.2a, replace ``Third- and fourth-class mail'' with ``Standard 
Mail''; in 1.2b, replace ``Third- or fourth-class,'' ``Third-Class 
Mail,'' and ``Fourth-Class Mail'' with ``Standard Mail,'' ``Standard 
Mail (A),'' and ``Standard Mail (B),'' respectively; no other change in 
text.]

S914  Certificate of Mailing

[In 1.2, delete ``or for First-, third-, and fourth-class matter 
bearing an official mail indicia''; in revised 1.2, replace ``First-, 
third-, and fourth-class matter'' with ``First-Class and Standard 
Mail''; in 1.6, replace ``third-class mail'' with ``Standard Mail 
(A)''; delete 2.3 and renumber current 2.4 as 2.3''; no other change in 
text.]

S915  Return Receipts

1.0  Basic Information
* * * * *
[Replace current 1.4 with new 1.4 as follows:]

1.4  Postage and Fees

    The applicable fee for return receipt service must be paid in 
addition to postage and other fees. For purposes of computing postage, 
the weight of the return receipt is excluded from the weight of the 
mailpiece to which it is attached.
* * * * *

S917  Return Receipt for Merchandise

[In 1.2, replace ``third-class,'' ``special fourth-class,'' and 
``library rates of postage'' with ``Standard Mail (A),'' ``Special 
Standard Mail,'' and ``Library Mail postage rates,'' respectively; in 
1.3, replace ``third-class'' and ``third-class

[[Page 10217]]
and fourth-class'' with ``Standard Mail (A)'' and ``Standard Mail,'' 
respectively; no other change in text.]

S921  Collect on Delivery (COD) Mail

[In 1.2, replace ``First-, third-, fourth-class, and Express Mail'' 
with ``Express Mail, First-Class and Priority Mail, and Standard 
Mail''; no other change in text.]
* * * * *

S923  Merchandise Return Service

[In 1.1, replace ``third-class, and fourth-class mail,'' ``special 
fourth-class,'' and ``library rate'' with ``and Standard Mail,'' 
``Special Standard Mail,'' and ``Library Mail,'' respectively; in 1.7, 
replace ``First-Class, third-class, and fourth-class'' with ``First-
Class and Standard Mail''; in 1.10, replace ``single-piece third-class 
or fourth-class parcel post'' with ``Standard Mail single-piece Regular 
or parcel post''; in 1.11, replace ``or third- or fourth-class,'' 
``Special fourth-class,'' and ``library rate'' with ``or Standard Mail 
(A) or Standard Mail (B),'' ``Special Standard Mail,'' and ``Library 
Mail,'' respectively; in 3.2, replace ``First-, third-, or fourth-
class'' with ``First-Class, or Standard Mail''; in 4.1, replace 
``third- or fourth-class,'' ``Third-Class Mail,'' and ``Fourth-Class 
Mail'' with ``Standard Mail,'' ``Standard Mail (A),'' and ``Standard 
Mail (B),'' respectively; in 4.7 and 5.6d, replace ``third- or fourth-
class'' with ``Standard Mail''; in 4.10, replace ``third- and fourth-
class'' with ``Standard Mail''; no other change in text.]

S930  Handling

[In 2.2, replace ``third- and fourth-class mail'' with ``Standard 
Mail''; in 3.2, replace ``both third-class mail and fourth-class mail'' 
with ``Standard Mail''; no other change in text.]
* * * * *
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-5500 Filed 3-5-96; 3:54 pm]
BILLING CODE 7710-12-P