[Federal Register Volume 61, Number 122 (Monday, June 24, 1996)]
[Proposed Rules]
[Pages 32606-32616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16026]




[[Page 32605]]


_______________________________________________________________________

Part VI





Postal Service





_______________________________________________________________________



39 CFR Part 111



Classification Reform; Implementation Standards; Proposed Rule

  Federal Register / Vol. 61, No. 122 / Monday, June 24, 1996 / 
Proposed Rules  

[[Page 32606]]



POSTAL SERVICE

39 CFR Part 111


Classification Reform; Implementation Standards

AGENCY: Postal Service.

ACTION: Proposed rule.

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

SUMMARY: This notice presents the full text of the Domestic Mail Manual 
standards that the Postal Service proposes to adopt for implementing 
its Classification Reform proposals contained in Postal Rate Commission 
Docket No. MC96-2, Classification Reform II.

DATES: Comments on the proposed standards must be received on or before 
July 24, 1996.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Customer Mail Preparation, U.S. Postal Service, 475 L'Enfant 
Plaza SW, Room 6830, Washington DC 20260-2405. Copies of all written 
comments will be available at the above address for inspection and 
photocopying between 9 a.m. and 4 p.m., Monday through Friday.

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

SUPPLEMENTARY INFORMATION: On April 4, 1996, 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 several 
mail classification reform proposals (Classification Reform II). The 
PRC designated the filing as Docket No. MC96-2. On April 11, 1996, the 
PRC published a notice of the filing, with a description of the Postal 
Service's proposals, in the Federal Register (61 FR 16129-16146).
    As stated in the Postal Service filing, the changes proposed in 
Docket No. MC96-2 deliberately mirror those adopted by the Governors of 
the Postal Service in Docket No. MC95-1. The Postal Service believes 
that this feature of its proposal will expedite the ratemaking process 
and facilitate simplified implementing standards if the PRC's 
Recommended Decision substantially supports the Postal Service's 
proposal and if that Recommended Decision is approved by the Governors 
and implemented by the Board of Governors.
    Until July 1, 1996 (the implementation date for Classification 
Reform I), rate eligibility and mail preparation standards are 
generally similar for both commercial and nonprofit mail. After that 
date, new standards will take effect for commercial rate categories, 
while the existing rules generally will be retained for the 
``unreformed'' nonprofit categories pending the resolution of Docket 
No. MC96-2. In line with its proposal in Docket No. MC96-2, the Postal 
Service is proposing revised Domestic Mail Manual (DMM) standards for 
nonprofit rate categories that will substantively eliminate the 
preparation and rate eligibility distinctions between commercial and 
nonprofit mail that will exist during the interim period beginning July 
1, 1996.
    Accordingly, the following units of the DMM would be eliminated if 
the Postal Service's proposal is adopted, having been established 
solely to contain former general standards that are applicable only to 
nonprofit rate categories during the interim period beginning July 1: 
E239, E249, E639, E649, L001, L897, L898, L899, M690, M692, M693, M695, 
M696, M697, M698, M890, M891, M892, M893, M894, M895, M896, M897, and 
M898. Sections of other units would also be eliminated for the same 
reason, as described in the detailed text below.
    The DMM text presented below reflects other organizational 
revisions that do not constitute substantive changes: E621 through E625 
are consolidated into E620; E631 through E634 are consolidated into 
E630; and E641 is redesignated as E640.
    The proposed rates described below in the revisions to DMM module R 
are as shown in the Postal Service's Request, currently pending before 
the Postal Rate Commission.
    As shown in the DMM standards below, the ``breakpoint'' for 
Nonprofit Standard Mail is also amended, based on the rates proposed in 
Docket No. MC96-2. Standard Mail (A) is subject to postage at either a 
minimum rate per piece or a compound rate consisting of a flat piece 
charge and a pound charge that varies according to the weight of the 
piece, whichever is higher. The breakpoint is the calculated piece 
weight at or below which the piece is subject to the minimum per piece 
rate; above it, the piece/pound rate must be paid. Because the 
breakpoint is based on the mathematical relationship of specific rate 
elements, it must be adjusted whenever rates are changed. Moreover, 
because the heaviest Standard Mail (A) breakpoint was adopted as the 
maximum weight for automation First-Class Mail and Periodicals ``heavy 
letter'' pieces, the standards below (C810.2.3f) reflect a decrease of 
0.0976 ounce in that weight (from the current 3.4383 ounces to the 
proposed 3.3407 ounces).
    The Postal Service is also proposing to revise the current standard 
that prohibits the use of certain nonpaper, plastic-like materials 
(such as spun-bonded olefin) that do not accept the water-based ink 
used by the Postal Service to spray barcodes on mail. The current 
prohibition applies to pieces claimed at ZIP+4 rates, but ZIP+4 rates 
were eliminated for First-Class Mail, Regular Periodicals, and Regular 
Standard Mail in MC95-1, and a comparable proposal is advanced in MC96-
2 for Preferred Periodicals and Nonprofit Standard Mail. Nonetheless, 
the Postal Service remains interested in optimizing its ability to 
``upgrade'' (i.e., spray a barcode on) that volume of customer mail 
that was formerly prepared to qualify for the ZIP+4 rates (e.g., 
compatible with automated address recognition and automated processing) 
and that will not hereafter be barcoded before entry into the 
mailstream. For that reason, the implementing standards for MC95-1 (and 
those proposed below for MC96-2) prescribe simpler preparation 
standards for ``upgradable'' mail than for other nonupgradable pieces. 
Because the Postal Service seeks to barcode this mail by means similar 
to those used for ZIP+4 rate mail, the Postal Service proposes to 
continue to ban the use of certain nonpaper envelope materials for 
``upgradable'' mail as it does now for ZIP+4 rate pieces. This ban is 
represented by the revision to C830.6.2 shown below.
    All references to DMM sections shown in this proposed rule are 
based not on current Domestic Mail Manual Issue 49 but on the 
redesignations and revisions of the DMM published in the Federal 
Register on March 12, 1996 (61 FR 10068-10217), and scheduled for 
release as DMM Issue 50 (July 1, 1996). The rates shown in DMM module R 
below are the step 4 rates proposed in the Postal Service's MC96-2 
request and, as such, are subject to change.
    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 
the following proposed revisions of the DMM, 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.


[[Page 32607]]


    2. Revise the following sections of the Domestic Mail Manual as set 
forth below:

A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

* * * * *
4.0  RETURN ADDRESS
* * * * *
[Revise the heading and text of 4.5 to read as follows:]

4.5  Upgradable Mail

    The return address on upgradable mail must be outside the OCR read 
area. If placed on the front of the mailpiece, the return address must 
be in the top left corner. It must extend no farther than half the 
length of the mailpiece from the left edge and no lower than one-third 
the height of the mailpiece from the top edge (see Exhibit 4.5).
* * * * *

A800  Addressing for Automation

1.0  ACCURACY

1.1  Basic Standards

[Revise 1.1 to read as follows:]
    To qualify for automation rates, addresses must be sufficiently 
complete to enable matching to the current USPS ZIP+4 File when used 
with current CASS-certified address matching software. Standardized 
address elements are not required.
* * * * *
[Revise the heading of A900 to read as follows:]

A900  Customer Support

* * * * *

A950  Coding Accuracy Support System (CASS)

* * * * *
3.0  DATE OF ADDRESS MATCHING AND CODING

3.1  Updating Standards

[Amend 3.1 by revising the second sentence to read as follows:]
    * * * Coding must be done within 90 days before the mailing date 
for all carrier route mailings and within 180 days before the mailing 
date for all non-carrier route automation rate mailings. * * *
* * * * *

C  CHARACTERISTICS AND CONTENT

* * * * *

C800  Automation-Compatible Mail

C810  Letters and Cards

* * * * *
2.0  DIMENSIONS
* * * * *

2.3  Weight

[Revise 2.3 to read as follows:]
    Maximum weight limits are:
    a. 2.5 ounces: upgradable Presorted First-Class Mail and upgradable 
nonautomation Standard Mail.
    b. 3 ounces: automation First-Class Mail, automation Periodicals, 
and automation Standard Mail.
    c. 3.3062 ounces: automation Enhanced Carrier Route heavy letters, 
subject to 7.5.
    d. 3.3087 ounces: automation Regular Standard Mail heavy letters, 
subject to 7.5.
    e. 3.3384 ounces: automation Nonprofit Enhanced Carrier Route heavy 
letters, subject to 7.5.
    f. 3.3407 ounces: automation First-Class Mail, automation 
Periodicals, and automation Nonprofit Standard Mail heavy letters, 
subject to 7.5.
* * * * *

8.0  ENCLOSED REPLY CARDS AND ENVELOPES

8.1  Basic Standard

[Revise 8.1 to read as follows:]
    Effective January 1, 1997 (or March 1, 1997, for Preferred 
Periodicals and Nonprofit Standard Mail), all letter-size reply cards 
and envelopes (business reply, courtesy reply, and metered reply mail) 
provided as enclosures in automation First-Class Mail, automation 
Periodicals, and automation Standard Mail (A), and addressed for return 
to a domestic delivery address, must meet the applicable standards in 
1.0 through 7.0, bear a facing identification mark (FIM) meeting the 
standards in 8.2, and bear the correct delivery point barcode (or, for 
business reply mail (BRM), the correct ZIP+4 barcode) for the delivery 
address on the reply piece as defined by the USPS and subject to the 
barcode standards in C840. Mailers must certify that these standards 
have been met when the corresponding mail (in which the reply pieces 
are enclosed) is presented to the USPS. BRM pieces must also meet the 
applicable standards in S922.
* * * * *

C830  OCR Standards

* * * * *
6.0  USPS WATER-BASED BARCODE INK
* * * * *

6.2  Nonpaper Materials

[Revise 6.2 to read as follows:]
    Certain nonpaper, plastic-like materials (such as spun-bonded 
Olefin) are not acceptable for upgradable pieces unless approved by 
USPS Engineering.
* * * * *
[Revise the heading of C840 to read as follows:]

C840  Barcoding Standards

* * * * *
2.0  BARCODE LOCATION--LETTER-SIZE PIECES

2.1  Barcode Clear Zone

[Amend 2.1 by replacing the term ``upgradable Regular Standard Mail'' 
with ``upgradable Standard Mail (A)'' in the first sentence to read as 
follows:]
    Each piece in an automation rate mailing and each piece of 
upgradable Presorted First-Class Mail or upgradable Standard Mail (A) 
must have a barcode clear zone unless the piece bears a DPBC in the 
address block. * * *

2.2  General Standards

[Replace 2.2, 2.2a, 2.2b, and 2.2c with new 2.2 to read as follows:]
    In automation rate mailings, pieces weighing 3 ounces or less may 
bear a DPBC either in the address block or in the barcode clear zone; 
pieces weighing more than 3 ounces (up to the maximum weight permitted 
by C810) must bear a DPBC in the address block.
* * * * *
[Revise the heading of 8.0 to read as follows:]
8.0  ZIP+4 OR 5-DIGIT BARCODES

8.1  Automation Pieces

[Replace 8.1, 8.1a, 8.1b, and 8.1c with new 8.1 to read as follows:]
    Except under 8.3, letter-size pieces in automation rate mailings 
may not bear a 5-digit or ZIP+4 barcode in the lower right corner 
(barcode clear zone); such pieces may bear a 5-digit or ZIP+4 barcode 
in the address block only if a DPBC appears in the lower right corner. 
Except under 8.3, flat-size pieces may not bear a 5-digit barcode.
* * * * *

8.3  Temporary Exception to Barcoding

[Revise 8.3 to read as follows:]
    Until January 1, 1997, up to 10% of the pieces in an automation 
Periodicals mailing of flat-size pieces may be prepared with only a 5-
digit barcode (subject to C840); and up to 10% of the pieces in an 
automation Periodicals mailing of letter-size pieces may be prepared 
without a barcode or with only a ZIP+4 barcode (subject to C840). 
Pieces within this 10% allowance must be combined and presorted with 
the rest

[[Page 32608]]

of the mailing, with postage paid at the applicable nonautomation 
Periodicals rate and supported by documentation under P012.
* * * * *

E  ELIGIBILITY

* * * * *

E100  First-Class Mail

* * * * *

E140  Automation Rates

1.0  BASIC STANDARDS
* * * * *

1.5  Enclosed Reply Cards and Envelopes

    Effective January 1, 1997, all letter-size reply cards and 
envelopes (business reply, courtesy reply, and metered reply mail) 
provided as enclosures in automation First-Class 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 (in 
which the reply pieces are enclosed) is presented to the USPS.
* * * * *

E200  Periodicals

E210  Basic Standards

E211  All Periodicals

* * * * *
14.0  BASIC RATE ELIGIBILITY
* * * * *
[Revise the heading of 14.3 to read as follows:]

14.3  Adjustments and Discounts

[Replace 14.3, 14.3a, 14.3b, 14.3c, and 14.3d with new 14.3 to read as 
follows:]
    Postage for Periodicals is reduced by all applicable adjustments 
and discounts. The nonadvertising adjustment applies to the outside-
county piece rate charges and is computed under P013. Presort and 
automation discounts are available under E230 and E240, respectively. 
Destination entry discounts are available under E250 for copies entered 
at specific USPS facilities.
* * * * *

E230  Nonautomation Rates

[Remove E239 and redesignate E231 as E230.]
1.0  GENERAL INFORMATION

1.1  Standards

[Amend 1.1 by replacing the reference ``M210'' with ``M200'' to read as 
follows:]
    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 M200, 
M810, or M820. Not all combinations of presort level, automation, and 
destination entry discounts are permitted.
* * * * *
2.0  CARRIER ROUTE RATES
* * * * *

2.2  Eligibility

[Amend 2.2 by replacing the reference ``M210'' with ``M200'' in the 
introductory text to read as follows:]
    Preparation to qualify eligible pieces for carrier route rates is 
optional and is subject to M200. Carrier route sort need not be 
performed for all carrier routes in a 5-digit area. Specific rate 
eligibility is subject to these standards:
* * * * *
3.0  3/5 RATES
[Amend 3.0 by revising the introductory text to read as follows:]
    Subject to M200, 3/5 rates apply to pieces not claimed at in-county 
rates, as follows:
* * * * *
4.0  BASIC RATES
[Revise 4.0 to read as follows:]
    Basic rates apply to pieces prepared under M200 but not claimed at 
Carrier Route or 3/5 rates.
[Redesignate current 5.0 and 6.0 as 6.0 and 7.0, respectively; add new 
5.0 to read as follows:]
5.0  IN-COUNTY RATES
    In-county Basic rates apply to all pieces eligible for in-county 
rates that are not also eligible under 2.0 for in-county Carrier Route 
rates.
* * * * *

E240  Automation Rates

[Remove E249 and redesignate E241 as E240.]
1.0  BASIC STANDARDS

1.1  All Pieces

[Amend 1.1 by revising the introductory text to read as follows:]
    All pieces in an automation Periodicals mailing must:
* * * * *

1.2  Enclosed Reply Cards and Envelopes

[Revise 1.2 to read as follows:]
    Effective January 1, 1997 (or March 1, 1997, for Preferred 
Periodicals), all letter-size reply cards and envelopes (business 
reply, courtesy reply, and metered reply mail) provided as enclosures 
in automation Periodicals 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 (in which the reply pieces are 
enclosed) is presented to the USPS.

1.3  Temporary Exception to Barcoding

[Revise 1.3 to read as follows:]
    Until January 1, 1997, up to 10% of the pieces in an automation 
Periodicals mailing of flat-size pieces may be prepared with only a 5-
digit barcode (subject to C840); and up to 10% of the pieces in an 
automation Periodicals mailing of letter-size pieces may be prepared 
without a barcode or with only a ZIP+4 barcode (subject to C840). 
Pieces within this 10% allowance must be combined and presorted with 
the rest of the mailing, with postage paid at the applicable 
nonautomation Periodicals rate and supported by documentation under 
P012.
* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *

E612  Additional Standards for Standard Mail (A)

* * * * *
4.0  BULK RATES
* * * * *

4.2  Minimum Per Piece Rates

[Revise 4.2 to read as follows:]
    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 no more than 0.2066 pound rounded (3.3062 ounces rounded); 
Regular nonautomation and automation rate pieces weighing no more than 
0.2068 pound rounded (3.3087 ounces rounded); Nonprofit Enhanced 
Carrier Route rate pieces weighing no more than 0.2087 pound rounded 
(3.3384 ounces rounded); and Nonprofit nonautomation and automation 
rate pieces weighing no more than 0.2088 pound rounded (3.3407 ounces 
rounded). The base postage rate applies to pieces meeting minimum 
preparation standards (e.g., Basic rate) and may be reduced if 
additional standards are met. In applying the minimum per piece rates, 
mail is categorized as either letters or other than letters, based on 
whether the mail meets the letter-size standard in C050. That standard 
disregards address placement, except that, for automation rates, mail 
may be assigned

[[Page 32609]]

to the other than letters category based on the standards in C820. 
Address placement is also used to apply the aspect ratio standard in 
C810 to letter-size automation rates.
* * * * *

4.7  Annual Fees

[Replace 4.7, 4.7a, and 4.7b with new 4.7 to read as follows:]
    Bulk rate Standard Mail (A) is subject to an annual mailing 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. Each 
mailer who enters mail at bulk rates paid with meter or precanceled 
stamps must pay an annual bulk mailing fee at each post office of 
mailing; a mailer paying this fee may enter clients' mail as well as 
the mailer's own. The mailer whose permit imprint appears on pieces in 
a mailing paid with a permit imprint must show 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 for an application to use 
permit imprints.
* * * * *

4.9  Preparation

[Amend 4.9 by revising the introductory text and 4.9c to read as 
follows:]
    Each bulk rate mailing is subject to these general standards:
* * * * *
    c. The same mailing may not contain both automation and 
nonautomation rate pieces.
* * * * *

E620  Nonautomation Nonpresort Rates

[Redesignate E621 as E620.1.0; revise to read as follows:]
1.0  SINGLE-PIECE STANDARD MAIL (A)
[Redesignate E621.1.1 through 1.6 as E620.1.1 through 1.6, 
respectively, and revise internal references accordingly; no other 
change in text.]

[Redesignate E622 as E620.2.0; revise to read as follows:]

2.0  PARCEL POST

[Redesignate chart under 2.1 as Exhibit 2.4 and revise redesignated 2.1 
to read as follows:]

2.1  Basic Standards

    Any Standard Mail (B) matter may be mailed at parcel post rates, 
subject to the basic standards in E611 and E613.

[Redesignate E622.1.2 and 1.3 as E620.2.2 and 2.3, respectively.]
* * * * *
[Redesignate E622.2.0, 3.0, and 4.0 as E620.2.4, 2.5, and 2.6, 
respectively, and revise internal references accordingly; no other 
change in text.]

2.4  Rate Eligibility

[Revise redesignated E620.2.4 to read as follows:]
    Parcel post rates are based on zones; on whether a parcel is mailed 
and delivered within the service area of the same bulk mail center 
(BMC), auxiliary service facility (ASF), or other designated service 
area (as shown in Exhibit 2.4); and on the weight of the parcel. 
Specific rates and discounts are subject to these additional standards:

[Redesignate E622.2.1 through 2.5 as E620.2.4a through 2.4e, 
respectively, and revise internal references accordingly; no other 
change in text.]
* * * * *

2.5  Nonmachinable Surcharge

[Revise redesignated E620.2.5 to read as follows:]
    The nonmachinable surcharge applies only to the items listed in 
2.5a through 2.5i if mailed at the inter-BMC/ASF parcel post rates. The 
surcharge does not apply to those items or to other matter mailed at 
another Standard Mail (B) rate or if the mailer paid the special 
delivery or special handling fee. The nonmachinable surcharge applies 
to items that meet any of these standards:

[Remove the introductory text of E622.3.2 and redesignate E622.3.2a 
through 3.2i as E620.2.5a through 2.5i, respectively.]
* * * * *

2.6  Fees

[Revise redesignated E620.2.6 to read as follows:]
    Parcel post is subject to these fees, as applicable:

[Redesignate E622.4.1 and 4.2 as E620.2.6a and 2.6b, respectively.]
* * * * *
[Redesignate E623 as E620.3.0.]
3.0  BOUND PRINTED MATTER
[Redesignate E623.1.1 through 1.4 as E620.3.1 through 3.4, 
respectively; no other change in text.]

[Redesignate E624 as E620.4.0.]
4.0  SPECIAL STANDARD MAIL
[Redesignate E624.1.1 through 1.4 as E620.4.1 through 4.4, 
respectively; no other change in text.]

[Redesignate E625 as E620.5.0.]
5.0  LIBRARY MAIL
[Redesignate E625.1.1 through 1.7 as E620.5.1 through 5.7, 
respectively; no other change in text.]

E630  Nonautomation Presort Rates

[Remove E639; redesignate E631 through E634 as E630.1.0 through 4.0, 
respectively, and revise as follows:]
1.0  REGULAR AND NONPROFIT STANDARD MAIL
[Redesignate E631.1.0 through 3.0 as E630.1.1 through 1.3, 
respectively; in redesignated 1.1 and 1.2, replace the term ``Regular 
Standard Mail'' with ``Regular or Nonprofit Standard Mail''; in 
redesignated 1.3, replace the term ``Regular rates'' with ``Regular and 
Nonprofit rates''; no other change in text.]
2.0  ENHANCED CARRIER ROUTE STANDARD MAIL
[Redesignate E632.1.1 through 1.7 as E630.2.1 through 2.7, 
respectively; in redesignated 2.3, replace the reference ``E641'' with 
``E640''; redesignate E632.2.1 and 2.2 as E630.2.8 and 2.9, 
respectively; revise the heading of redesignated 2.8 to read as ``Basic 
Rates''; in redesignated 2.9, replace the reference ``1.6 and 1.7'' 
with ``2.6 and 2.7''; no other change in text.]
3.0  BULK BOUND PRINTED MATTER
[Redesignate E633.1.1 and 1.2 as E630.3.1 and 3.2, respectively; in 
redesignated 3.1, replace the phrase ``basic standards in E623'' with 
``basic standards for bound printed matter in E620''; no other change 
in text.]
4.0  PRESORTED SPECIAL STANDARD MAIL
[Redesignate E634.1.0 and 2.1 through 2.5 as E630.4.1 and 4.2 through 
4.6, respectively; no change in text.]

E640  Automation Rates

[Remove E649; redesignate E641 as E640; in 1.1, 1.1b, and 1.2, replace 
the term ``Regular Standard Mail'' with ``Regular or Nonprofit Standard 
Mail''; in 1.3, replace the term ``Regular automation rates'' with 
``Automation rates''; in 1.4, replace the term ``Regular automation 
rates'' with ``Automation rates.'']

[Revise the heading of 1.0 to read as follows:]
1.0  REGULAR AND NONPROFIT RATES

1.1  All Pieces

    [Amend 1.1 by revising the introductory text and 1.1b to read as 
follows:] All pieces in an automation

[[Page 32610]]

rate Regular or Nonprofit Standard mailing must:
* * * * *
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of automation rate Standard Mail (Regular and Nonprofit 
mailings must meet separate minimum volumes).
* * * * *

1.2  Enclosed Reply Cards and Envelopes

[Revise 1.2 to read as follows:]
    Effective January 1, 1997 (or March 1, 1997, for Nonprofit Standard 
Mail), all letter-size reply cards and envelopes (business reply, 
courtesy reply, and metered reply mail) provided as enclosures in 
automation Regular or Nonprofit Standard 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 (in which 
the reply pieces are enclosed) is presented to the USPS.
* * * * *
[Revise the heading of 2.0 to read as follows:]
2.0  ENHANCED CARRIER ROUTE RATES

2.1  All Pieces

[Amend 2.1 by revising the introductory text and 2.1b to read as 
follows:]
    All pieces in an automation rate Enhanced Carrier Route Standard 
mailing (available for letters only) must:
* * * * *
    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 
(Regular and Nonprofit mailings must meet separate minimum volumes).
* * * * *

2.4  Enclosed Reply Cards and Envelopes

[Revise 2.4 to read as follows:]
    Effective January 1, 1997 (or March 1, 1997, for Nonprofit Enhanced 
Carrier Route Standard Mail), all letter-size reply cards and envelopes 
(business reply, courtesy reply, and metered reply mail) provided as 
enclosures in automation Enhanced Carrier Route Standard 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 (in which the reply pieces are enclosed) is presented to the USPS.
* * * * *

E650  Destination Entry

* * * * *

E652  Parcel Post

[In 1.4, replace the reference ``E622'' with ``E620''; no other change 
in text.]

E670  Nonprofit Standard Mail

1.0  BASIC STANDARDS

1.1  Organization Eligibility

[Amend 1.1 by adding the qualifying phrase ``i.e., all nonautomation 
and automation Nonprofit rates'' to the end of the section to read as 
follows:]
    Only organizations that meet the standards in 2.0 or 3.0 and that 
have received specific authorization from the USPS may mail eligible 
matter at the Nonprofit Standard Mail rates, i.e., all nonautomation 
and automation Nonprofit rates.
* * * * *

L  LABELING LISTS

[Remove L001, L897, L898, and L899.]

M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

[Revise the heading of 1.0 to read as follows:]
1.0  TERMS AND CONDITIONS
* * * * *

1.2  Presort Levels

[Amend 1.2 by revising 1.2d, 1.2h, and 1.2i to read as follows:]
    Terms used for presort levels are defined as follows:
* * * * *
    d. 3-digit: the ZIP Code in the delivery address on all pieces 
begins with the same three digits (see L002, Column A).
* * * * *
    h. SCF: the separation includes pieces for two or more 3-digit 
areas served by the same SCF (see L005), 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 or L801).
* * * * *

1.4  Mailing

[Revise 1.4 to read as follows:]
    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. 
The following types of mail may not be part of the same mailing despite 
being in the same class and processing category: automation and 
nonautomation mail; automation rate Enhanced Carrier Route and other 
mail; any combination of Enhanced Carrier Route, Regular, Nonprofit, 
and/or Nonprofit Enhanced Carrier Route Standard Mail.
* * * * *

M013  Optional Endorsement Lines

1.0  USE

1.1  Basic Standards

[Amend 1.1 by removing in the chart the entries for Optional City and 
Working; by revising the parenthetical following the first entry for 
Carrier Route to read as ``(Periodicals)''; by revising the 
parenthetical following the entry for SCF to read as ``(bound printed 
matter)''; and by removing the parenthetical ``(Except Preferred 
Periodicals and Nonprofit Standard Mail)'' following the entries for 
AADC and Mixed AADC.]
* * * * *

1.4  Rate Markings

[Amend 1.4 by replacing the term ``automation Regular Standard Mail'' 
with ``automation Regular or automation Nonprofit Standard Mail.'']
* * * * *

M014  Carrier Route Information Lines

1.0  BASIC INFORMATION
[Amend 1.0 by replacing the terms ``carrier route and Level I/K 
Periodicals'' with ``Carrier Route Periodicals.'']
* * * * *

M020  Packages and Bundles

[Remove 2.0; redesignate 3.0 and 4.0 as 2.0 and 3.0, respectively; 
revise the heading of redesignated 2.0 as ``Additional Standards--
First-Class Mail, Periodicals, and Standard Mail (A)''; amend 
redesignated 2.1c by replacing the terms ``Regular Standard Mail'' with 
``Standard Mail (A)'' and ``Regular Periodicals'' with ``Periodicals''; 
no other change in text.]

M030  Containers

M031  Labels

* * * * *
4.0  PALLET LABELS
* * * * *

4.8  Delivery Unit, SCF, DDU, and DSCF Rates

[Revise 4.8 to read as follows:]
    If a 5-digit, 3-digit, or SCF pallet contains copies claimed at 
Periodicals

[[Page 32611]]

delivery unit and SCF zone rates, or Standard Mail DDU and DSCF rates, 
as applicable, the contents line of the pallet label must show the 
designation DDU/SCF, after the description of the contents.
* * * * *

M032  Barcoded Labels

1.0  BARCODED TRAY LABELS

1.1  Standards

[Revise 1.1 to read as follows:]
    Effective January 1, 1997, barcoded tray labels are required for 
all mailings of automation rate First-Class Mail flat-size pieces and 
automation rate First-Class Mail, Periodicals, and Standard Mail (A) 
letter-size pieces. Barcoded tray labels may be used before that date 
and may be used for other trayed mail. Mailer-produced barcoded tray 
labels must meet the standards below. Revisions to preprinted barcoded 
labels (e.g., handwritten changes) are not permitted.
* * * * *
2.0  BARCODED SACK LABELS

2.1  Standards

[Revise 2.1 to read as follows:]
    Effective January 1, 1997, barcoded sack labels are required for 
all mailings of automation rate Periodicals and Standard Mail (A) flat-
size pieces prepared in sacks. Barcoded sack labels may be used before 
that date and may be used for other sacked mail. Mailer-produced 
barcoded sack labels must meet the standards below. Revisions to 
preprinted barcoded labels (e.g., handwritten changes) are not 
permitted.
* * * * *

M033  Sacks and Trays

[In 1.2a, replace the terms ``Regular Periodicals, and Regular and 
Enhanced Carrier Route Standard Mail (A)'' with ``Periodicals, and bulk 
rate Standard Mail (A)''; remove the last sentence of 1.2f; in 1.4, 
remove the phrase and clause ``except for Preferred Periodicals and 
Nonprofit Standard Mail, which are covered in 3.0 and 4.0''; in 1.7, 
replace the phrase ``Except for Nonprofit Standard and Preferred 
Periodicals mailings, after'' with ``After''; revise the heading of 2.0 
to read as ``First-Class Mail, Periodicals, and Bulk Rate Standard Mail 
(A)''; remove 3.0 and 4.0; no other change in text.]

M040  Pallets

* * * * *

M045  Palletized Mailings

* * * * *
2.0  PACKAGES
* * * * *

2.2  Size--Periodicals

[Amend 2.2 by replacing the references ``M210 and M290'' in 2.2a with 
``M200'' to read as follows:]
    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 M200).
* * * * *
8.0  MIXED RATE LEVELS ON PALLETS--NONPROFIT STANDARD MAIL
* * * * *

8.2  Authorizations

[Amend 8.2 by revising the first sentence to read as follows:]
    Mailers must obtain a USPS authorization before commingling 
nonautomation, automation, or Enhanced Carrier Route Nonprofit Standard 
Mail on pallets. * * *
* * * * *

8.4  Documentation

[Replace 8.4, 8.4a, and 8.4b with new 8.4 to read as follows:]
    At the time of mailing, the mailer must provide standardized 
documentation, as required by the standards for the rate claimed, that 
includes pallet numbers to facilitate postal verification of the 
corresponding mail. When requested, the mailer must present pallets 
selected by USPS employees for verification.

8.5  Additional Pallet Standards

[Remove 8.5c and redesignate 8.5d as 8.5c.]
* * * * *
[Revise the heading of M050 to read as follows:]

M050  Delivery Sequence

[Amend 1.1 by replacing the references ``M290 or M693'' with ``M200 or 
M620''; no other change in text.]

M070  Mixed Classes

* * * * *

M073  Combined Mailings of Standard Mail Machinable Parcels

[Amend 1.1 by replacing the term ``Regular Standard Mail (A)'' with 
``Standard Mail (A).'']
* * * * *

M200  Periodicals (Nonautomation)

[Remove M290; redesignate M210 as M200 and revise internal references 
accordingly; amend 1.1, 1.2, and 2.3 (heading and text) by replacing 
the term ``Regular Periodicals'' with ``Periodicals.'']
* * * * *

M600  Standard Mail (Nonautomation)

[Revise the heading of M610 to read as follows:]

M610  Single-Piece and Nonautomation Standard Mail (A)

* * * * *
[Revise the heading of 2.0 to read as follows:]
2.0  BASIC STANDARDS--NONAUTOMATION RATES

2.1  All Mailings

[Amend 2.1 by revising the introductory text, 2.1a, and 2.1e to read as 
follows:]
    All nonautomation (Basic and 3/5) rate mailings are subject to 
these general standards (automation rate Standard Mail must be prepared 
under M810 or M820, as applicable):
    a. Each mailing must meet the applicable standards in E630 and in 
M010, M020, and M820.
* * * * *
    e. Subject to M012, all pieces eligible for and claimed at 
Nonprofit rates must be marked ``Nonprofit Organization'' (or 
``Nonprofit Org.'' or ``Nonprofit''); all other pieces must be marked 
``Bulk Rate'' (or ``Blk. Rt.''). In addition, pieces may be marked 
``Single-Piece'' (or ``SNGLP'') under P600 to correct an incorrect rate 
marking.
* * * * *

2.3  Exception--Standard Mail (A)

[In 2.3, replace the terms ``Regular Standard Mail'' with ``Standard 
Mail'' and ``Regular nonletter nonautomation'' with ``nonletter 
nonautomation.'']
* * * * *
[Revise the heading of 3.0 to read as follows:]
3.0  BASIC PREPARATION--NONAUTOMATION RATE LETTER-SIZE PIECES
* * * * *
[Revise the heading of 4.0 to read as follows:]
4.0  OPTIONAL PREPARATION--UPGRADABLE NONAUTOMATION RATE LETTER-SIZE 
PIECES
* * * * *
[Revise the heading of 5.0 to read as follows:]

[[Page 32612]]

5.0  PREPARATION--NONAUTOMATION RATE FLAT-SIZE PIECES AND ALL IRREGULAR 
PARCELS
* * * * *
[Revise the heading of 6.0 to read as follows:]
6.0  MACHINABLE PARCELS
* * * * *
[Revise the heading of 7.0 to read as follows:]
7.0  BEDLOADED BUNDLES OF NONAUTOMATION RATE FLAT-SIZE PIECES
[Amend 7.1 by replacing the term ``Regular nonautomation rate Standard 
Mail (A)'' with ``nonautomation rate Standard Mail (A)''; no other 
change in text.]

M620  Enhanced Carrier Route Standard Mail

1.0  BASIC STANDARDS

1.1  All Mailings

[Amend 1.1 by revising 1.1a and 1.1e to read as follows:]
    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 E630 and in 
M010, M020, and M030.
* * * * *
    e. Subject to M012, all pieces eligible for and claimed at 
Nonprofit rates must be marked ``Nonprofit Organization'' (or 
``Nonprofit Org.'' or ``Nonprofit''); all other pieces must be marked 
``Bulk Rate'' (or ``Blk. Rt.''). In addition, Basic, High Density, and 
Saturation rate pieces must each be marked ``ECRLOT,'' ``ECRWSH,'' or 
``ECRWSS,'' respectively. Pieces not claimed at the corresponding rate 
must not be marked ``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS'' unless paid at 
single-piece rate or a corrective single-piece rate marking is applied 
under P600.
* * * * *

1.4  Exception--Standard Mail (A)

[Revise 1.4 to read as follows:]
    When a Standard Mail (A) mailing job could, by size, qualify for 
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 nonletter nonautomation rates if the number of 
nonletter nonautomation rate pieces does not exceed 10% of the total 
number of pieces in the entire mailing job.
* * * * *
5.0  RESIDUAL MAIL
[Amend 5.0 by replacing the term ``Regular Standard Mail rates'' with 
``Regular or Nonprofit Standard Mail rates, as appropriate'' to read as 
follows:]
    Pieces not sorted under 2.0 and either 3.0 or 4.0 must be prepared 
as a separate mailing at Regular or Nonprofit Standard Mail rates, as 
appropriate.
* * * * *
[Remove M690, M692, M693, M695, M696, M697, and M698.]

M800  All Automation Mail

[Revise the heading of M810 to read as follows:]

M810  Letter-Size Mail

1.0  BASIC STANDARDS

1.1  Standards

[Amend 1.1 by replacing the term ``Regular Periodicals'' with 
``Periodicals'' in the first sentence to read as follows:]
    Letter-size automation rate First-Class Mail, Periodicals, and 
Standard Mail (A) must be prepared under M810 and the eligibility 
standards for the rate claimed. * * *
* * * * *

1.3  Marking

[Revise 1.3 to read as follows:]
    Periodicals require no marking. Subject to M012, all pieces must be 
marked ``AUTO'' (or ``AUTOCR'' for carrier route rate) and 
``Presorted'' and ``First-Class'' if First-Class Mail; ``Nonprofit 
Organization'' (or ``Nonprofit Org.'' or ``Nonprofit'') if eligible 
Nonprofit Standard Mail; or ``Bulk Rate'' (or ``Blk. Rt.'') if other 
Standard Mail. Pieces not claimed at an automation rate may not be 
marked ``AUTO'' or ``AUTOCR'' unless single-piece rate postage is 
affixed or a corrective single-piece rate marking is applied under P100 
or P600.
* * * * *

1.5  Carrier Route

[Amend 1.5 by replacing the reference ``E641'' with ``E640.'']
* * * * *
[Revise the heading of M820 to read as follows:]

M820  Flat-Size Mail

1.0  BASIC STANDARDS

1.1  Standards

[Amend 1.1 by replacing the term ``Regular Periodicals'' with 
``Periodicals'' in the first sentence to read as follows:]
    Flat-size automation rate First-Class Mail, Periodicals, and 
Standard Mail (A) must be prepared under M820 and the eligibility 
standards for the rate claimed. * * *
* * * * *

1.4  Marking

[Revise 1.4 to read as follows:]
    Periodicals require no marking. Subject to M012, all pieces must be 
marked ``AUTO'' and ``Presorted'' and ``First-Class'' if First-Class 
Mail; ``Nonprofit Organization'' (or ``Nonprofit Org.'' or 
``Nonprofit'') if eligible Nonprofit Standard Mail; or ``Bulk Rate'' 
(or ``Blk. Rt.'') if other Standard Mail. Pieces not claimed at an 
automation rate may not be marked ``AUTO'' unless single-piece rate 
postage is affixed or a corrective single-piece rate marking is applied 
under P100 or P600.

1.5  Exception--Standard Mail (A)

[Amend 1.5 by replacing the terms ``Regular Standard Mail'' with 
``Standard Mail'' and ``Regular nonletter nonautomation'' with 
``nonletter nonautomation'' to read as follows:]
    When a Standard Mail (A) mailing job could, by size, qualify for 
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 nonletter nonautomation rates if the number of 
nonletter nonautomation rate pieces does not exceed 10% of the total 
number of pieces in the entire mailing job.
* * * * *
[Remove M890, M891, M892, M893, M894, M895, M896, M897, and M898.]

P  POSTAGE AND PAYMENT METHODS

P000  Basic Information

P010  General Standards

P011  Payment

1.0  PREPAYMENT AND POSTAGE DUE

1.1  Prepayment Conditions

[Amend 1.1 by revising 1.1e to read as follows:]
    The mailer is responsible for proper payment of postage. Postage on 
all mail must be fully prepaid at the time of mailing, except as 
specifically provided by standard for:
* * * * *

[[Page 32613]]

    e. Keys and identification devices returned to owners (see E620).
* * * * *

P012  Documentation

* * * * *
[Revise the heading of 2.0 to read as follows:]
2.0  STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, AND 
STANDARD MAIL (A)

2.1  Basic Standard

[Amend 2.1 by replacing in the first sentence the terms ``Regular 
Periodicals'' with ``Periodicals'' and ``Regular and Enhanced Carrier 
Route Standard Mail'' with ``Standard Mail (A)'' to read as follows:]
    For First-Class Mail, Periodicals, and Standard Mail (A), 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. * * *

2.2  Format and Content

[Amend 2.2 by revising the introductory text to read as follows:]
    For First-Class Mail, Periodicals, and Standard Mail (A), 
standardized documentation includes:
* * * * *

2.5  Combined and Copalletized Mailings

[Amend 2.5 by revising the introductory text to read as follows:]
    For combined or copalletized mailings of Periodicals and Standard 
Mail (A) prepared under M045, the listing must show the following 
additional information:
* * * * *
[Remove 3.0; redesignate 4.0 as 3.0.]
* * * * *

P013  Rate Application and Computation

* * * * *
4.0  RATE APPLICATION--STANDARD MAIL (A)
* * * * *

4.3  Bulk Rates

[Revise 4.3 to read as follows:]
    Bulk rates are based on the weight of the pieces and are applied 
differently to pieces weighing less than or equal to a ``breakpoint'' 
(rounded to four decimal places) and those weighing more, as follows:
    a. The appropriate minimum per piece rate applies to pieces 
weighing 0.2066 pound (3.3062 ounces) or less (Enhanced Carrier Route 
rates), 0.2068 pound (3.3087 ounces) or less (Regular rates), 0.2087 
pound (3.3384 ounces) or less (Nonprofit Enhanced Carrier Route rates), 
or 0.2088 pound (3.3407 ounces) or less (Nonprofit rates).
    b. A rate determined by adding the appropriate fixed per piece 
charge and the corresponding variable per pound charge (based on the 
weight of the piece) applies to pieces weighing more than 0.2066 pound 
(3.3062 ounces) (Enhanced Carrier Route rates), 0.2068 pound (3.3087 
ounces) (Regular rates), 0.2087 pound (3.3384 ounces) (Nonprofit 
Enhanced Carrier Route rates), or 0.2088 pound (3.3407 ounces) 
(Nonprofit rates).
* * * * *

P014  Refunds and Exchanges

* * * * *
4.0  REFUND REQUESTS FOR EXCESS POSTAGE--AT TIME OF MAILING (``VALUE 
ADDED REFUNDS'')
* * * * *

4.13  Standard Mail (A)

[Replace 4.13, 4.13a, 4.13b, and 4.13c with new 4.13 to read as 
follows:]
    If a value added refund request is submitted when a Standard Mail 
(A) mailing is presented to the USPS, each piece must be letter-size, 
weigh less than the applicable maximum weight for automation mail 
prescribed in C810, be part of an automation rate mailing, and be 
metered by the presenter or the presenter's customer at a 3/5 
nonautomation rate or at any automation minimum per piece rate. Pieces 
for each entry must be prepared as a separate mailing if the 
destination entry rates are claimed.
* * * * *

P040  Permit Imprints

* * * * *
2.0  PREPARING PERMIT IMPRINTS
* * * * *

2.5  References to Expedited Handling

[Amend 2.5 by revising 2.5a to read as follows:]
    Except for postcard-size mail and imprints placed on address 
labels, permit imprints on bulk rate Standard Mail (A) bearing 
references to expedited handling or delivery (e.g., ``Priority,'' 
``Express,'' ``Overnight'') must:
    a. Show the words ``Bulk Rate'' or ``Nonprofit Organization'' (or 
``Nonprofit Org.'' or ``Nonprofit'') more prominently than other words 
in the imprint.
    b. Have a clear space of at least \3/8\ inch around the entire 
permit imprint.
* * * * *
4.0  FORMATS

4.1  Basic Standard

[Amend the Nonprofit Standard Mail examples in Exhibit 4.1b by 
replacing the endorsement ``Carrier Route Presort'' with ``AUTOCR.'']
* * * * *

P600  Standard Mail

* * * * *
3.0  AUTOMATION RATES

3.1  Method

[Amend 3.1 by removing the parenthetical ``(including Nonprofit ZIP+4 
and Barcoded rates)'' in the first sentence to read as follows:]
    Postage on any mailing made at an automation rate must be paid with 
meter stamps, permit imprints, or precanceled postage, under applicable 
standards. * * *
* * * * *

P710  Manifest Mailing System (MMS)

* * * * *
3.0  KEYLINE
* * * * *

3.3  Rate Category Abbreviations

[Revise 3.3 and Exhibit 3.3b to read as follows:]
    Keylines on 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., NV/DS).
* * * * *

      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.    

[[Page 32614]]

                                                                        
ES                              Enhanced Carrier Route Saturation.      
NV                              Nonprofit Automation 5-Digit [letters   
                                 only].                                 
NT                              Nonprofit Automation 3-Digit [letters   
                                 only].                                 
NF                              Nonprofit Automation 3/5 [flats only].  
NB                              Nonprofit Automation Basic.             
FA                              Nonprofit 3/5.                          
FB                              Nonprofit Basic.                        
PA                              Nonprofit Enhanced Carrier Route        
                                 Automation Basic [letters only].       
PB                              Nonprofit Enhanced Carrier Route Basic. 
PH                              Nonprofit Enhanced Carrier Route High   
                                 Density.                               
PS                              Nonprofit Enhanced Carrier Route        
                                 Saturation.                            
DB                              Destination Bulk Mail Center (DBMC).    
DD                              Destination Delivery Unit (DDU).        
DS                              Destination Sectional Center Facility   
                                 (DSCF).                                
SP                              Single-Piece Rate [when fewer than 200  
                                 pieces accompany automation rate mail].
------------------------------------------------------------------------



* * * * *

P760  First-Class or Standard Mail Mailings With Different Payment 
Methods

* * * * *
2.0  POSTAGE
* * * * *

2.2  Metered Pieces--Standard Mail (A)

[Revise 2.2 to read as follows:]
    Metered pieces in a combined mailing must bear postage at a 
nonautomation presort or automation 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.
* * * * *

2.4  Precanceled Pieces -- Standard Mail (A)

[Revise 2.4 to read as follows:]
    Pieces with precanceled stamps in a combined mailing must bear 
postage in any denomination of precanceled stamp permitted in an 
automation 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.
* * * * *

R  RATES AND FEES

* * * * *

R200  Periodicals

* * * * *
[Revise 2.0, 3.0, and 4.0 to read as follows:]
2.0  PREFERRED--IN-COUNTY

2.1  Pound Rates

    Per pound or fraction:

------------------------------------------------------------------------
                             Zone                                 Rate  
------------------------------------------------------------------------
Delivery Unit................................................     $0.112
All Others...................................................      0.122
------------------------------------------------------------------------

2.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                                Letter- 
                                                                  size  
         Presort level           Nonautomation    Automation  ----------
                                                     \1\       Flat-size
------------------------------------------------------------------------
Basic..........................       $0.081         $0.081       $0.081
3/5............................  .............  .............      0.066
3-Digit........................  .............        0.077    .........
5-Digit........................  .............        0.064    .........
Carrier Route..................        0.043    .............  .........
High Density...................        0.038    .............  .........
Saturation.....................        0.036    .............  .........
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3407 ounces for heavy letters); flat-size at 16 ounces.             

* * * * *
3.0  PREFERRED--NONPROFIT

3.1  Pound Rates

    Per pound or fraction:
    a. For the nonadvertising portion: $0.138.
    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
------------------------------------------------------------------------

3.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                       Automation \1\   
                                                   ---------------------
           Presort level             Nonautomation   Letter-            
                                                       size    Flat-size
------------------------------------------------------------------------
Basic..............................       $0.216       $0.186     $0.192
3/5................................        0.171    .........      0.147
3-Digit............................  .............      0.148  .........
5-Digit............................  .............      0.148  .........
Carrier Route......................        0.104    .........  .........
High Density.......................        0.097    .........  .........
Saturation.........................        0.083    .........          1
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3407 ounces for heavy letters); flat-size at 16 ounces.             

* * * * *
4.0  PREFERRED--CLASSROOM

4.1  Pound Rates

    Per pound or fraction:
    a. For the nonadvertising portion: $0.110.
    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
------------------------------------------------------------------------

4.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                         Automation1    
                                                   ---------------------
           Presort level             Nonautomation   Letter-            
                                                       size    Flat-size
------------------------------------------------------------------------
Basic..............................       $0.171       $0.154     $0.148
3/5................................        0.128    .........      0.113
3-Digit............................  .............      0.118  .........
5-Digit............................  .............      0.111  .........
Carrier Route......................        0.090    .........  .........
High Density.......................        0.088    .........  .........
Saturation.........................        0.083    .........  .........
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3407 ounces for heavy letters); flat-size at 16 ounces.             

* * * * *
[Revise the heading of 5.0 to read as follows:]
5.0  PREFERRED--SCIENCE-OF-AGRICULTURE
* * * * *

R600  Standard Mail

* * * * *

[[Page 32615]]

[Revise 5.0 to read as follows:]
5.0  NONPROFIT

5.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2088 lb. (3.3407 
oz.) or Less

----------------------------------------------------------------------------------------------------------------
                                                       Nonautomation                   Automation \1\           
                 Entry discount                 ----------------------------------------------------------------
                                                    Basic         3/5         Basic       3-Digit      5-Digit  
----------------------------------------------------------------------------------------------------------------
None...........................................       $0.132       $0.114       $0.099       $0.095       $0.082
DBMC...........................................        0.119        0.101        0.086        0.082        0.069
DSCF...........................................        0.114        0.096        0.081        0.077        0.064
DDU............................................  ...........  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              

5.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2088 lb. 
(3.3407 oz.) or Less

----------------------------------------------------------------------------------------------------------------
                                                                    Nonautomation            Automation \1\     
                       Entry discount                        ---------------------------------------------------
                                                                 Basic         3/5         Basic         3/5    
----------------------------------------------------------------------------------------------------------------
None........................................................       $0.195       $0.143       $0.171       $0.119
DBMC........................................................        0.182        0.130        0.158        0.106
DSCF........................................................        0.177        0.125        0.153        0.101
DDU.........................................................  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Available only for automation-compatible flats.                                                             

5.3  Piece/Pound Rates--Pieces More Than 0.2088 lb. (3.3407 oz.)

----------------------------------------------------------------------------------------------------------------
                                                                    Nonautomation            Automation \2\     
                    Piece pound rate \1\                     ---------------------------------------------------
                                                                 Basic         3/5         Basic         3/5    
----------------------------------------------------------------------------------------------------------------
Per Piece...................................................       $0.100       $0.048       $0.076       $0.024
Per Pound (includes entry discount if applicable)...........         Plus         Plus         Plus         Plus
None........................................................       $0.455       $0.455       $0.455       $0.455
DBMC........................................................        0.393        0.393        0.393        0.393
DSCF........................................................        0.367        0.367        0.367        0.367
DDU.........................................................  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.                                                
\2\ Available only for automation-compatible flats.                                                             

[Redesignate 6.0 through 11.0 as 7.0 through 12.0, respectively, with 
no change in text; add new 6.0 to read as follows:]
6.0  NONPROFIT ENHANCED CARRIER ROUTE

6.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2087 lb. (3.3384 
oz.) or Less

----------------------------------------------------------------------------------------------------------------
                                                                        Nonautomation                Automation 
                                                           ---------------------------------------------\1\-----
                      Entry discount                                         High                               
                                                               Basic       density     Saturation      Basic    
----------------------------------------------------------------------------------------------------------------
None......................................................       $0.087       $0.081       $0.075        $0.079 
DBMC......................................................        0.074        0.068        0.062         0.066 
DSCF......................................................        0.069        0.063        0.057         0.061 
DDU.......................................................        0.063        0.057        0.051         0.055 
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              


[[Page 32616]]



6.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2087 lb. 
(3.3384 oz.) or Less

------------------------------------------------------------------------
                                                      High              
            Entry  discount               Basic     density   Saturation
------------------------------------------------------------------------
None..................................     $0.095     $0.088      $0.082
DBMC..................................      0.082      0.075       0.069
DSCF..................................      0.077      0.070       0.064
DDU...................................      0.071      0.064       0.058
------------------------------------------------------------------------

6.3  Piece/Pound Rates--Pieces More Than 0.2087 lb. (3.3384 oz.)

------------------------------------------------------------------------
                                                      High              
         Piece/pound rate \1\             Basic     density   Saturation
------------------------------------------------------------------------
Per Piece.............................     $0.013     $0.006      $0.000
Per Pound (includes entry discount if                                   
 applicable)..........................       Plus       Plus        Plus
None..................................     $0.393     $0.393      $0.393
DBMC..................................      0.331      0.331       0.331
DSCF..................................      0.305      0.305       0.305
DDU...................................      0.279      0.279       0.279
------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.        

* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-16026 Filed 6-21-96; 8:45 am]
BILLING CODE 7710-12-P