[Federal Register Volume 61, Number 76 (Thursday, April 18, 1996)]
[Rules and Regulations]
[Pages 17206-17209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9594]




[[Page 17205]]


_______________________________________________________________________

Part VII





Postal Service





_______________________________________________________________________



39 CFR Part 111



Experimental First-Class and Priority Mail Small Parcel Automation Rate 
Category Implementation Standards; Changes in Domestic Mail 
Classifications and Rates; Final Rule and Notice

  Federal Register / Vol. 61, No. 76 / Thursday, April 18, 1996 / Rules 
and Regulations  

[[Page 17206]]



POSTAL SERVICE

39 CFR Part 111


Experimental First-Class and Priority Mail Small Parcel 
Automation Rate Category; Implementation Standards

AGENCY: Postal Service.

ACTION: Final rule.

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

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 United States Postal Service on the Recommended 
Decision of the Postal Rate Commission on the Experimental First-Class 
and Priority Mail Small Parcel Automation Rate Category, Docket No. 
MC96-1.

EFFECTIVE DATE: April 28, 1996.

FOR FURTHER INFORMATION CONTACT: Leo F. Raymond, (202) 268-5199, or 
Susan Duchek, (202) 268-2990.

SUPPLEMENTARY INFORMATION: On December 19, 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 an experimental rate category for specific types of nonpresorted 
barcoded First-Class and Priority Mail. The PRC designated the filing 
as Docket No. MC96-1. The PRC published a notice of the filing, with a 
description of the Postal Service's proposals, on December 27, 1995, in 
the Federal Register (60 FR 66999-67000).
    The Postal Service's Request to the PRC proposed that the Postal 
Service be permitted to establish automation rate categories and 4-
cent-per-piece discounts for certain nonpresorted bulk barcoded First-
Class and Priority Mail small parcels entered for outgoing primary 
distribution at three test sites on a 2-year experimental basis. 
Eligible parcels would be processed on small parcel and bundle sorters 
(SPBSs) equipped with barcode scanners. Currently, such SPBSs are 
installed at only three postal facilities: the Southeastern, PA, 
Processing and Distribution Center (P&DC); the Philadelphia, PA, 
Airport Mail Center (AMC); and the St. Petersburg, FL, P&DC. These 
facilities will be the test sites for the experiment.
    A mailer wishing to prepare test mailings will be required to 
submit a written application to the Manager, Customer Mail Preparation, 
USPS Headquarters, at least 14 days before the earliest requested 
mailing date. The application must describe the mailpieces to be 
presented; preparation level and containerization mode (as applicable); 
typical daily and annual volumes and a schedule of mailings; deposit 
sites for mailings; postage payment method; sites of any corresponding 
authorizations for precanceled stamps, postage meters, or permit 
imprints. The mailer must also submit enough sample barcoded parcels to 
the plant manager of the test site where pieces are to be processed so 
that the accuracy and readability of the barcodes can be determined. If 
the barcodes on the submitted parcels are found accurate, correctly 
prepared, and readable, mailings may begin when approved by the 
Manager, Customer Mail Preparation, subject to the conditions in the 
authorization letter. The complete standards for participation are set 
forth in the DMM revision that follows.
    The goals of the Postal Service in requesting and conducting the 
experiment are: (1) To determine whether it is feasible to offer an 
automation discount for nonpresorted barcoded First-Class and Priority 
Mail small parcels; (2) to gauge mailer interest and acceptance of this 
type of discount; and (3) to confirm that the use of a barcode scanner 
with an SPBS provides significant sortation quality and productivity 
enhancements when comparing the automated processing of nonpresorted 
barcoded small parcels with the manual keying of the same or similar 
pieces. The 4-cent discount is based on the estimated cost difference 
between keying a nonbarcoded parcel and scanning a barcoded parcel.
    Pursuant to 39 U.S.C. 3624, the PRC on March 13, 1996, issued to 
the Governors of the Postal Service its Recommended Decision on the 
Postal Service's Request. The PRC recommendation substantially followed 
the mail classification structure and rates requested by the Postal 
Service. After reviewing the PRC's Recommended Decision and its 
consequences for the Postal Service and postal customers, the 
Governors, pursuant to 39 U.S.C. 3625, acted on the PRC's 
recommendations on April 1, 1996. Decision of the Governors of the 
United States Postal Service on the Recommended Decision of the Postal 
Rate Commission on the Experimental First-Class and Priority Mail Small 
Parcel Automation Rate Category, Docket No. MC96-1. The Governors 
determined to approve the PRC's recommendations, and the Board of 
Governors set an implementation date of April 28, 1996, for those rate 
and classification changes to take effect. A notice announcing the 
Governors' Decision and the 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. Those standards take 
effect April 28, 1996. The final rule reflects the criteria presented 
by the Postal Service in its pleadings before the PRC. As described 
above, the Postal Service is limiting this experimental rate category 
to those pieces of nonpresorted First-Class and Priority Mail that are 
outside the parameters of existing automation (i.e., letter and flat 
sorting machines equipped with barcode readers). Moreover, because this 
experiment focuses on the value of the mailer's worksharing effort not 
in presorting the mail but in barcoding the mail, the final rule 
excludes pieces prepared for a presort discount from concurrent 
eligibility for an automation discount.
    The final rule also presents the technical standards for the 
barcode formats readable by the automated equipment on which mail will 
be processed during this experiment. Although these standards have not 
previously been published in the DMM, they are based on existing 
industry standards and have been used in nonpostal applications for 
some time. Therefore, the Postal Service finds no need to solicit 
comment on those standards or to delay implementation of this 
experiment pending their evaluation.

List of Subjects in 39 CFR Part 111

    Postal Service.

    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations (see 39 
CFR part 111).

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. Add new G090 to the Domestic Mail Manual as follows:
G  GENERAL INFORMATION
* * * * *

[[Page 17207]]

G090  Experimental Classifications and Rates

G091  Barcoded Small Parcels

1.0  BASIC ELIGIBILITY

1.1  Applicability

    The standards in G091 apply to pieces claimed at the experimental 
automation rates for First-Class and Priority Mail small parcels. All 
pieces in an automation rate small parcel mailing under G091 must:
    a. Meet the basic standards for First-Class Mail and Priority Mail 
in E110 and E120, respectively, and the specific standards in 2.0 
through 7.0.
    b. Be part of a single mailing of at least 50 pieces of either 
First-Class Mail or Priority Mail, eligible for and claimed at the 
automation rate for small parcels. The same mailing may not contain 
both First-Class and Priority Mail pieces.
    c. Meet the applicable physical standards in 2.0.
    d. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code.
    e. Meet the address quality and coding standards in 4.0, A800, and 
A950.
    f. Bear an accurate barcode meeting the standards in 3.0.
    g. Be marked and prepared as specified in 5.0.
    h. Meet the documentation and postage payment standards in 6.0 and 
P012.
    i. Be deposited at a post office served by one of the test sites 
designated in 1.4.

1.2  Rate Application

    Each piece in an automation small parcel rate mailing qualifies for 
the corresponding single-piece First-Class or single-piece Priority 
Mail rate shown in 7.0.

1.3  Participation in Test

    Participation in the test is subject to these conditions:
    a. A mailer wishing to participate in preparing test mailings under 
G091 must submit a written application to the Customer Mail Preparation 
manager (for address, see G043) at least 14 days before the earliest 
requested mailing date. The application must describe the mailpieces to 
be presented; preparation level and containerization mode (as 
applicable); typical daily and annual volumes and a schedule of 
mailings; deposit sites for mailings; postage payment method; sites of 
any corresponding authorizations for precanceled stamps, postage 
meters, or permit imprints. The mailer must also submit sample barcoded 
parcels to the plant manager of the test site where pieces are to be 
processed so that the accuracy and readability of the barcodes can be 
determined; the plant manager will specify the sample size. The mailer 
is notified of any corrective action.
    b. If the barcodes on the submitted parcels are found accurate, 
correctly prepared, and readable, mailings may begin when approved by 
the Customer Mail Preparation manager, subject to the conditions in the 
authorization letter; no further notice is required except as specified 
under 6.0.
    c. An authorization is subject to amendment on 10 days' written 
notice to the mailer and ends automatically at the end of the test 
period (April 28, 1998). The mailer may end participation on 10 days' 
written notice to the Customer Mail Preparation manager. The USPS may 
terminate an authorization on 10 days' written notice to the mailer for 
failing to meet the eligibility standards in G091 or in accordance with 
a material change in the terms and conditions of the experimental 
classification. The mailer may file a written appeal of a denied 
application or revoked authorization, within 30 days of receipt of the 
notice of denial or revocation, with the Marketing Systems vice 
president (for address, see G043), who issues the final agency 
decision.

1.4 Test Sites

    As specified in the authorization letter, mail prepared under G091 
must be entered at a post office for which outgoing primary 
distribution is performed as follows:
    a. For Priority Mail, at either the St. Petersburg, FL, Processing 
and Distribution Center (P&DC) (3-digit ZIP Code area 337 and 5-digit 
ZIP Codes 33504, 34634, 34635, 34640-34649, and 34664-34666) or the 
Philadelphia, PA, Airport Mail Center (080-084, 189-194, and 197-199).
    b. For First-Class Mail, at either the St. Petersburg, FL, P&DC (3-
digit ZIP Code area 337 and 5-digit ZIP Codes 33504, 34634, 34635, 
34640-34649, and 34664-34666) or the Southeastern, PA, P&DC (3-digit 
ZIP Code areas 189, 193, and 194).
2.0  PHYSICAL CHARACTERISTICS

2.1  Automation Compatibility

    Only pieces that do not meet the dimensional and other physical 
standards in C810 or C820 may be claimed at the automation small parcel 
rates, subject to 2.2 and 2.3. Pieces must not have loose string, 
packaging material, or other protrusions that might snag or jam in 
processing equipment or impede or damage the mail or mail processing 
equipment. Pieces may not be prepared in envelopes or as unenclosed 
bound or unbound pages. Pieces may be prepared in padded mailing 
envelopes or in paper or plastic containers if the wrapper and dunnage 
can protect the contents during automated processing.

2.2  Measurement

    The dimensions of an irregularly shaped piece are based on the size 
of the smallest cube that could contain the piece when placed in a 
stable position for processing. The dimensions of other pieces are 
those of the largest surface area of another surface area that faces up 
when the piece is oriented for stable processing.

2.3  Dimensions and Weight

    All pieces are subject to these size and weight limits:
    a. The two horizontal dimensions (length and width) must be no less 
than 3.5 by 5 inches but no more than 12 by 15.5 inches.
    b. The vertical dimension (thickness) must be no more than 8 inches 
but:
    (1) More than 0.25 inch if the horizontal dimensions are 6.125 by 
11.5 inches or less; or
    (2) At least 0.01 inch if the horizontal dimensions are more than 
6.125 by 11.5 inches.
    c. The maximum weight of a piece must be no more than 20 pounds.
3.0  BARCODE CHARACTERISTICS

3.1  Basic Standards

    Every addressed piece mailed at the automation small parcel rates 
must bear the correct 6-digit barcode (a 5-digit ZIP Code and a 1-digit 
verifier character) in Interleaved 2 of 5, Code 39, or Code 128 format. 
Technical specifications for these three barcode formats appear in 
Uniform Symbology Specification (USS) documents USS-I2/5, USS-39, and 
USS-128, respectively, available from Automatic Identification 
Manufacturers (AIM), Material Handling Institute, Inc., 1326 Freeport 
Rd., Pittsburgh, PA 15238-3131. Only one 6-digit barcode ending in a 
``9'' character may appear on the mailpiece. The barcode must be 
located as specified in 4.1. No printing may appear in an area 0.125 
inch above, below, and on either side of the barcode, regardless of 
location.

3.2  Dimensions

    Narrow bars and spaces must be at least 0.013 inch wide; wide bars 
and spaces, at least 0.030 inch wide. All bars must be at least 0.75 
inch high. The gap between characters must equal the narrow bar width 
if Code 39 is used.

[[Page 17208]]

The ratio of wide to narrow bar width may be in one of two ranges:
    a. If only one 6-digit barcode appears on the address side of the 
mailpiece, the ratio must be between 1.9:1 and 3.2:1, inclusive, for 
the Interleaved 2 of 5 and Code 39 formats.
    b. If more than one 6-digit barcode appears on the address side of 
the mailpiece, the ratio must be between 1.9:1 and 2.2:1, inclusive, 
regardless of barcode format.

3.3  Verifier

    The verifier character must be the last digit of the 6-digit 
barcode. The correct verifier digit is always 9. The verifier appears 
only as part of the barcode and is not printed as part of the human-
readable ZIP Code.

3.4  Reflectance

    When measured in the red spectrum (633 nanometers  5%) 
by a USPS or USPS-licensed reflectance meter, the minimum white bar 
(space) reflectance (Rs) must be 25%, and the maximum black bar 
reflectance (Rb) must be less than 30%. The minimum print reflectance 
difference (Rs-Rb) is 35%.
4.0  ADDRESS INFORMATION

4.1  Address

    The address and barcode must be on the mailpiece side with the 
largest surface area, except that the address and barcode must be on 
the top surface of the mailpiece when its shape requires specific 
orientation for stability during automated processing. The delivery 
address and/or the barcode may be printed on an attachment or on an 
enclosure in a window envelope, subject to the reflectance standards in 
3.4.

4.2  Numeric Barcode

    In addition to the ZIP Code or ZIP+4 code included in the delivery 
address, human-readable characters representing the numeric equivalent 
of the barcode (but omitting the verifier character), preceded by the 
word ``ZIP,'' must be printed near the barcode but outside the barcode 
clear zone in a type size equal to or larger than that used in the 
delivery address.

4.3  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). 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. If a USPS-approved 
address update tool is used, a valid update is obtained regardless of 
the class of mail on which the address is placed. 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.
5.0  MAIL PREPARATION
    The standards in 5.0 apply exclusively to pieces claimed at the 
experimental automation rates for First-Class and Priority Mail small 
parcels. Pieces are subject to the basic eligibility standards in E100 
applicable to First-Class or Priority Mail and the general standards in 
M010, M020, and M030. Mail may be deposited at an eligible entry post 
office, regardless of destination. No packaging is required or 
permitted. No sortation or package labeling is required. First-Class 
pieces must be marked ``EX-AUTO'' and either ``First-Class'' or 
``Priority Mail,'' as appropriate. Pieces must be prepared in sacks or 
other containers labeled as directed by the test site plant manager. 
Use the city/state/ZIP for that facility on Line 1. For Line 2, use FCM 
PP BC WKG; if required by the plant manager, the applicable processing 
code must be right-justified on Line 2 under the ZIP Code on Line 1.
6.0  POSTAGE PAYMENT AND DOCUMENTATION
    Full postage must be affixed to each piece by meter or precanceled 
stamps, or paid by permit imprint, under an authorization issued by the 
entry post office (which must be an eligible facility listed in 1.4); 
plant-verified and other forms of drop shipment may not be used to 
deposit mail at an authorized entry post office. A complete, signed 
postage statement, using the correct USPS form or an approved 
facsimile, must accompany each mailing. No other documentation is 
required.
7.0  RATES AND FEES

7.1  First-Class Mail

    First-Class Mail weighing 1 ounce or less may be subject to a 
nonstandard surcharge under E100. Pieces weighing 11 ounces or less not 
mailed as Priority Mail:

------------------------------------------------------------------------
                        Weight Increment                           Rate 
------------------------------------------------------------------------
First ounce or fraction of an ounce............................    $0.28
Each additional ounce or fraction of an ounce..................     0.23
------------------------------------------------------------------------

7.2  Priority Mail

    Single-piece Priority Mail rates for barcoded small parcels:

----------------------------------------------------------------------------------------------------------------
                                                                      Zone \1\                                  
 Weight Not Over (pounds) \2\ \3\  -----------------------------------------------------------------------------
                                    L, 1, 2 & 3       4            5            6            7            8     
----------------------------------------------------------------------------------------------------------------
1.................................         2.96         2.96         2.96         2.96         2.96         2.96
2.................................         2.96         2.96         2.96         2.96         2.96         2.96
3.................................         3.96         3.96         3.96         3.96         3.96         3.96
4.................................         4.96         4.96         4.96         4.96         4.96         4.96
5.................................         5.96         5.96         5.96         5.96         5.96         5.96
6.................................         6.31         6.86         7.06         7.16         7.76         7.96
7.................................         6.61         7.46         8.06         8.36         9.16         9.76
8.................................         6.91         7.96         8.96         9.46        10.36        11.56
9.................................         7.36         8.56         9.76        10.56        11.26        12.96
10................................         7.76         9.26        10.51        11.36        12.11        14.01
11................................         8.21         9.86        11.31        12.16        12.96        15.06
12................................         8.66        10.51        12.06        12.96        13.86        16.11
13................................         9.06        11.16        12.76        13.76        14.71        17.16
14................................         9.51        11.81        13.56        14.51        15.56        18.21
15................................         9.96        12.41        14.31        15.31        16.46        19.26
16................................        10.36        13.11        15.01        16.11        17.31        20.31
17................................        10.81        13.71        15.76        16.91        18.16        21.36
18................................        11.26        14.31        16.46        17.71        19.01        22.41

[[Page 17209]]

                                                                                                                
19................................        11.66        15.01        17.21        18.51        19.91        23.46
20................................        12.11        15.61        17.91        19.26        20.76        24.51
----------------------------------------------------------------------------------------------------------------
\1\ Add $4.95 for each pickup stop.                                                                             
\2\ The 2-pound rate is charged for matter sent in a ``flat rate'' envelope provided by the USPS.               
\3\ Parcels weighing less than 15 pounds but measuring more than 84 inches in length and girth combined are     
  charged a minimum rate equal to that for a 15-pound parcel for the zone to which addressed.                   


    A transmittal letter making these changes in the pages of the 
Domestic Mail Manual will be published and will be transmitted to 
subscribers automatically. Notice of issuance will be published in the 
Federal Register as provided by 39 CFR 111.3.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-9594 Filed 4-17-96; 8:45 am]
BILLING CODE 7710-12-P