[Federal Register Volume 61, Number 159 (Thursday, August 15, 1996)]
[Rules and Regulations]
[Pages 42478-42489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20816]



[[Page 42477]]


_______________________________________________________________________

Part III





Postal Service





_______________________________________________________________________



39 CFR Part 111



Classification Reform; Implementation Standards; Final Rule

  Federal Register / Vol. 61, No. 159 / Thursday, August 15, 1996 / 
Rules and Regulations  

[[Page 42478]]



POSTAL SERVICE

39 CFR Part 111


Classification Reform; Implementation Standards

AGENCY: Postal Service.

ACTION: Final rule with 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 United States Postal Service on the Recommended 
Decision of the Postal Rate Commission on Nonprofit Standard Mail, 
Nonprofit Enhanced Carrier Route Standard Mail, Nonprofit Periodicals, 
and Within County Periodicals, Docket No. MC96-2, Classification Reform 
II. This final rule also contains the phased rates being implemented 
both for those subclasses as well as for Classroom Periodicals and 
Library Mail.

DATES: The final rule is effective October 6, 1996. Comments on the 
standards for Classroom Periodicals as discussed in Supplementary 
Information must be received on or before September 5, 1996.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Customer Mail Preparation and Standards, 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 for nonprofit Periodicals and 
Standard Mail (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).
    After an abbreviated proceeding that was made possible by 
settlement between many of the intervenors and the Postal Service, the 
PRC issued its Opinion and Recommended Decision on Docket No. MC96-2 on 
July 19, 1996. In that document, the PRC favorably recommended what the 
Postal Service had proposed, with the exception of those provisions in 
the Classroom Periodicals rate schedule; the PRC reopened the record in 
Docket No. MC96-2 for further proceedings on that category of mail. On 
August 6, 1996, the Governors of the Postal Service accepted the 
Recommended Decision and the Board of Governors set October 6, 1996, as 
the date on which the provisions of Docket No. MC96-2 would take 
effect. A notice of the Decision of the Governors is published 
elsewhere in this issue of the Federal Register.
    As stated in the Postal Service filing, the changes proposed in 
Docket No. MC96-2 deliberately mirrored those adopted by the Governors 
of the Postal Service in Docket No. MC95-1. The Postal Service 
correctly believed that this feature of its proposal would expedite the 
ratemaking process and facilitate simplified implementing standards if 
the PRC's Recommended Decision substantially supported the Postal 
Service's proposal and if that Recommended Decision were 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 were 
generally similar for both commercial and nonprofit mail. After that 
date, new standards took effect for commercial rate categories, while 
the preexisting rules were generally 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 
proposed revised Domestic Mail Manual (DMM) standards for nonprofit 
rate categories that would substantively eliminate the preparation and 
rate eligibility distinctions between commercial and nonprofit mail 
that would exist after July 1, 1996.
    The DMM standards that were proposed to take effect to implement 
Docket No. MC96-2 were published for public comment in the Federal 
Register on June 24, 1996 (61 FR 32606-32616).
    No comments were received on the proposed rule. Accordingly, it is 
adopted without change as the final rule, except that comments may be 
submitted on the rate provisions for Classroom Periodicals.
    Accordingly, the following units of the DMM are eliminated, having 
been established solely to contain former general standards that were 
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 are also eliminated for 
the same reason, as shown in the detailed DMM text below.
    In addition, the existing eligibility standards in E231 and E239 
are consolidated into E230, and existing E241 and E249 are consolidated 
into new E240. The basic mail preparation standards in M010 through 
M070, as amended in the proposed rule, are also implemented as proposed 
for all nonprofit mail.
    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.
    Most of the rates described below in the revisions to DMM module R 
are Step 4 rates, not the Step 6 ``full'' rates shown in the Postal 
Service's Request, recommended by the PRC, and accepted by the 
Governors. ``Full'' rates are subject to incremental implementation 
(phasing) under the provisions of 39 U.S.C. 3642. For certain nonletter 
Nonprofit Standard Mail, however, Step 4 rates would conflict with the 
provisions of subsection (d) of section 3642. Consequently, the rates 
for such mail (i.e., all pieces subject to Nonprofit 3/5 and Enhanced 
Carrier Route nonletter rates) have been set at the Step 6 ``full'' 
rates. Compared with the tentative rates published in the June 24 
Federal Register, this results in different rates for all Nonprofit 3/5 
and Enhanced Carrier Route rate nonletter-size pieces. Within the 
Nonprofit subclass, it also results in a difference in pound rates 
between Basic rate and 3/5 rate pieces subject to nonletter rates.
    The ``breakpoint'' for Nonprofit Standard Mail is also amended, 
based on the rates in Docket No. MC96-2 and the implementation of Step 
6 rates as discussed above. (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 is adjusted whenever rates are changed.) The 
implementation of Step 6 rates has caused a slight decrease from the 
breakpoint for Nonprofit Enhanced Carrier Route Standard Mail rates

[[Page 42479]]

published in the proposed rule. As shown below, that breakpoint is set 
at 0.2084 pound (3.3348 ounces), 0.0036 ounce less than in the proposed 
rule.
    Because the PRC's Recommended Decision, as accepted and implemented 
by the Governors, excludes rate changes for Classroom Periodicals that 
had been proposed by the Postal Service, the rates for Classroom 
Periodicals in DMM module R are revised to reflect only the Step 4 
rates separately scheduled to take effect October 6, 1996, as 
prescribed by the Governors of the Postal Service. Under the same 
scheduled advancement to Step 4, revised rates for Library Mail also 
take effect October 6, 1996. Although not part of Docket No. MC96-2 or 
this rulemaking, the revised Library Mail rates are shown below as 
information to readers.
    The PRC's Recommended Decision leaves the rate schedule for 
Classroom Periodicals unchanged, retaining ZIP+4 Classroom rates. 
Because of this difference from what the Postal Service had proposed in 
its request and in the proposed rule, this final rule is amended to 
retain access to ZIP+4 rates for Classroom Periodicals in a way that 
minimizes the impact of those provisions on the Postal Service's 
efforts to simplify DMM standards for rate eligibility and mail 
preparation. Therefore, the Postal Service adopts standards for ZIP+4 
Classroom rate mail that are different from those published in DMM 
Issue 50. Because these standards were not part of the June 24 proposed 
rule, the Postal Service will accept further comments on those 
standards from interested parties for an additional 21 days.
    In general, the Postal Service establishes eligibility standards 
for ZIP+4 Classroom rate mail that parallel those for other automation 
rate Periodicals. Mail preparation standards for ZIP+4 Classroom rate 
mail would be essentially similar to those for upgradable mail in other 
classes, except a ZIP+4 code would be required in the address. The 
Postal Service anticipates minimal adverse impact from this proposal on 
the mailing community, given the applicability of ZIP+4 rates to only 
letter-size pieces and the likely absence of a significant volume of 
letter-size mail in the Classroom Periodicals subclass.
    The Postal Service is also revising the 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 was 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 adopted by this 
notice 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 will 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 rule are based on DMM 
Issue 50 (July 1, 1996).

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. 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 piece from the left edge and no lower than one-third the 
height of the piece 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  Update 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
* * * * *
[Revise the heading of 2.3 to read as follows:]

2.3  Maximum Weight

[Revise 2.3 to read as follows:]
    Maximum weight limits are as follows:
    a. 2.5 ounces: upgradable Presorted First-Class Mail, ZIP+4 
Classroom Periodicals, 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.

[[Page 42480]]

    d. 3.3087 ounces: automation Regular Standard Mail heavy letters, 
subject to 7.5.
    e. 3.3348 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. The mailer 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 Material

[Revise 6.2 to read as follows:]
    Certain nonpaper, plastic-like material (such as spun-bonded 
olefin) is 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 revising the first sentence to read as follows:]
Each letter-size piece in an automation rate mailing, each piece of 
ZIP+4 Classroom Periodicals, 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  5-Digit and ZIP+4 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 of the mailing, with postage paid at the applicable 
nonautomation Periodicals rate and supported by documentation under 
former M893 (letters) or M897 (flats).
* * * * *
E  Eligibility
* * * * *

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 done 
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:]

[[Page 42481]]

    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, and 
revise internal references accordingly; 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:]
    Except for Classroom Periodicals under 3.0, 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, and addressed for return to a domestic 
delivery address, must meet the standards in C810 for enclosed reply 
cards and envelopes. The mailer 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 
former M893 (letters) or M897 (flats).
[Revise the heading of 2.0 to read as follows:]
2.0  Rate Application--Except Classroom Periodicals
[Redesignate current 2.1a, 2.1b, and 2.1c as 2.1b, 2.1d, and 2.1e, 
respectively, and revise redesignated 2.1b and add new 2.1a and 2.1c to 
read as follows:]

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 trays qualify for the 5-
digit automation in-county rate.
    b. Groups of 150 or more pieces in 5-digit or unique 3-digit trays 
qualify for the 3/5 automation Regular or Nonprofit rate, as 
applicable.
    c. Groups of 150 or more pieces in unique 3-digit trays qualify for 
the 3-digit automation in-county rate.
    d. Pieces for a unique 3-digit destination that is part of a 3-
digit scheme group in L003 qualify for the 3/5 automation rate when 
placed in a 3-digit scheme tray if grouped separately from pieces for 
other 3-digit areas.
    e. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in other 3-digit, 3-digit 
scheme, or AADC trays and all pieces in mixed AADC trays qualify for 
the Basic automation rate.
* * * * *
[Add new 3.0 to read as follows:]
3.0  Classroom Periodicals

3.1  ZIP+4 Rates

    ZIP+4 Classroom Periodicals must meet the basic standards in 1.1a 
through 1.1f and 1.2, except each piece must meet the physical 
standards for letter-size mail in C810 and the standards for OCR 
processing in C830, must bear the correct ZIP+4 code in the address, 
and must have address elements in the standardized format placed in the 
OCR read area, under A010. ZIP+4 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 ZIP+4 rate.
    b. Groups of fewer than 150 pieces in origin/entry 3-digit trays 
and groups of 150 or more pieces in other 3-digit or AADC trays, and 
all pieces in mixed AADC trays qualify for the Basic ZIP+4 rate.

3.2  Barcoded Rates

    Barcoded Classroom Periodicals must meet the basic standards in 
1.0. Barcoded 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 trays qualify for the 5-
digit Barcoded rate.
    b. Groups of 150 or more pieces in unique 3-digit trays qualify for 
the 3-digit Barcoded rate.
    c. Pieces for a unique 3-digit destination that is part of a 3-
digit scheme group in L003 qualify for the 3-digit Barcoded rate when 
placed in a 3-digit scheme tray if grouped separately from pieces for 
other 3-digit areas.
    d. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in other 3-digit, 3-digit 
scheme, or AADC trays and all pieces in mixed AADC trays qualify for 
the Basic Barcoded rate.

E250  Destination Entry

[Amend 2.1 by replacing the reference ``M210'' with ``M200'' and by 
removing the phrase ``or Level I or K''; no other change to text.]
* * * * *

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 0.2084 pound rounded 
(3.3348 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 to the other than letters category based

[[Page 42482]]

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; no other change to text.]
[Redesignate E622 as E620.2.0 and revise internal references 
accordingly; revise to read as follows:]
2.0  Parcel Post
[Redesignate chart under 2.1 as Exhibit 2.4, with the heading ``BMC/ASF 
Service Areas,'' 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 to text.]

2.4  Rate Eligibility

[Add introductory text to redesignated E620.2.4 to read as follows:]
    Parcel post rates are based on the zone to which the parcel is 
addressed; the weight of the parcel; and whether the parcel is mailed 
and delivered either within the service area of the same bulk mail 
center (BMC) or auxiliary service facility (ASF) (as shown in Exhibit 
2.4) or within another designated service area. 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 to text.]
* * * * *

2.5  Nonmachinable Surcharge

[Add introductory text to 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 and 
no special delivery or special handling fee is paid. The nonmachinable 
surcharge applies to items within these categories:
[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

[Add introductory text to 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.]
[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, and revise internal references accordingly; no other 
change to 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, and revise internal references accordingly; no other 
change to 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 to 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 to 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''; in redesignated 
3.2b, replace the reference ``1.2a'' with ``3.2a''; no other change to 
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.]

E640  Automation Rates

[Remove E649; redesignate E641 as E640; 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 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

[[Page 42483]]

(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, and addressed for return 
to a domestic delivery address, must meet the standards in C810 for 
enclosed reply cards and envelopes. The mailer 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, and 
addressed for return to a domestic delivery address, must meet the 
standards in C810 for enclosed reply cards and envelopes. The mailer 
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 
to text.]

E670 Nonprofit Standard Mail

1.0  Basic Standards

1.1  Organization Eligibility

[Revise 1.1 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 any Nonprofit Standard Mail rate, including Nonprofit 
Enhanced Carrier Route 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 terms following the first entry 
for Carrier Route to read as only ``(Periodicals)''; by revising the 
parenthetical terms following the entry for SCF to read as only 
``(bound printed matter)''; and by removing the parenthetical phrase 
``(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 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 to 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 delivery unit and SCF zone rates, or Standard Mail DDU and 
DSCF rates, as applicable, the content line of the pallet label must 
show the designation ``DDU/SCF,'' after the content description.
* * * * *

[[Page 42484]]

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 to 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 counted as one 
piece for presort standards (see M200).
* * * * *
[Remove 8.0 and renumber 9.0 as 8.0 with no change to text.]
[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 to 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; 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 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, 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:]
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 to 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,''

[[Page 42485]]

respectively. Pieces not claimed at the corresponding rate must not be 
marked ``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS'' unless single-piece rate 
postage is affixed 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 the size of the pieces in a Standard Mail (A) mailing job 
enables them to 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 nonletter 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.* * *

1.2  Mailings

[Amend 1.2 by adding the following sentence to the end of the section 
to read as follows:]
    * * * A Periodicals mailing may not contain both ZIP+4 Classroom 
pieces and any other automation rate Periodicals.

1.3  Marking

[Revise 1.3 to read as follows:]
    Except for Periodicals (which require no markings), all pieces must 
be marked (subject to M012) ``AUTO'' or ``AUTOCR'' for carrier route 
rate) and, as appropriate, ``Presorted'' and ``First-Class'' if First-
Class Mail; ``Nonprofit Organization'' (or ``Nonprofit Org.'' or 
``Nonprofit'') if Nonprofit or Nonprofit Enhanced Carrier Route 
Standard Mail; or ``Bulk Rate'' (or ``Blk. Rt.'') if Regular or 
Enhanced Carrier Route Standard Mail. Pieces not claimed at automation 
rates must 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.'']

1.6  Scheme Sortation

[Amend 1.6 by adding the following sentence to the end of the section 
to read as follows:]
    * * * Scheme sortation is not available for ZIP+4 Classroom 
Periodicals.
* * * * *
3.0  Preparation--Periodicals

3.1  Tray Preparation

[Amend 3.1 by revising 3.1b to read as follows:]
    Tray size, preparation sequence, and labeling:
* * * * *
    b. 3-digit/scheme (3-digit only for ZIP+4 Classroom Periodicals): 
required (150-piece minimum except no minimum for required origin/
optional entry 3-digit(s)/scheme); overflow allowed; for Line 1, use 
L002, Column B (except use L002, Column A, for ZIP+4 Classroom 
Periodicals).
* * * * *

3.2 Line 2

[Revise 3.2 to read as follows:]
    Line 2: PER or NEWS (as appropriate) LTRS BC (except LTRS UPGR for 
ZIP+4 Classroom Periodicals) and:
    a. For scheme trays: SCHEME (or as shown in L002, Column B).
    b. For mixed AADC trays: WKG.
4.0 Documentation
[Amend 4.0 by replacing the reference ``M210'' with ``M200.'']
[Revise the heading of M820 to read as follows:]

M820 Flat-Size Mail

1.0 Basic Standards

1.1 Standards

[Amend 1.1 by revising 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:]
    Except for Periodicals (which require no markings), all pieces must 
be marked (subject to M012) ``AUTO'' and, as appropriate, ``Presorted'' 
and ``First-Class'' if First-Class Mail; ``Nonprofit Organization'' (or 
``Nonprofit Org.'' or ``Nonprofit'') if Nonprofit Standard Mail; or 
``Bulk Rate'' (or ``Blk. Rt.'') if Regular Standard Mail. Pieces not 
claimed at automation rates must 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)

[Revise 1.5 to read as follows:]
    When the size of the pieces in a Standard Mail (A) mailing job 
enables them to 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 nonletter 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 Documentation
[Amend 5.0 by replacing the reference ``M210'' with ``M200.'']
[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

[[Page 42486]]

mailing, except as specifically provided by standard for:
* * * * *
    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), 0.2084 
pound (3.3348 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), 0.2084 pound (3.3348 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

* * * * *
[Revise the heading of 2.0 to read as follows:]
2.0  Permit Imprint Preparation
* * * * *

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'' (``Blk. Rt.'') or ``Nonprofit 
Organization'' (or ``Nonprofit Org.'' or ``Nonprofit'') more 
prominently than other words in the imprint.
    b. Include 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
[Revise the heading of 3.1 to read as follows:]

3.1  Payment Methods

[Amend 3.1 by revising 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., EB/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.............................  3/5.                                   
RB.............................  Basic.                                 

[[Page 42487]]

                                                                        
EA.............................  Enhanced Carrier Route Automation Basic
                                  [letters only].                       
EB.............................  Enhanced Carrier Route Basic.          
EH.............................  Enhanced Carrier Route High Density.   
ES.............................  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:

------------------------------------------------------------------------
                                                         Automation \1\ 
                                                      ------------------
             Presort level              Nonautomation   Letter-   Flat- 
                                                         size      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-   Flat- 
                                                         size      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\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3407 ounces for heavy letters); flat-size at 16 ounces.             

3.3  Discounts

    Piece rate discounts:
* * * * *
    b. Delivery unit zone piece discount for each addressed piece 
claimed in the pound rate portion at the delivery unit zone rate: 
$0.012.
    c. SCF zone piece discount for each addressed piece claimed in the 
pound rate portion at the SCF zone rate: $0.006.
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..................................................   $0.180
SCF............................................................    0.191
1 & 2..........................................................    0.212
3..............................................................    0.223
4..............................................................    0.250
5..............................................................    0.292
6..............................................................    0.335
7..............................................................    0.388
8..............................................................    0.432
------------------------------------------------------------------------

4.2  Piece Rates

    Per addressed piece:

----------------------------------------------------------------------------------------------------------------
                                                                                           Barcoded \1\         
                  Presort level                    Nonautomation   ZIP+4 Letter- -------------------------------
                                                                       size         Letter-Size      Flat-Size  
----------------------------------------------------------------------------------------------------------------
Basic...........................................          $0.169          $0.162          $0.152          $0.146
3/5.............................................           0.126           0.122  ..............           0.111
3-Digit.........................................  ..............  ..............           0.116  ..............
5-Digit.........................................  ..............  ..............           0.109  ..............
Carrier Route...................................           0.088  ..............  ..............  ..............
High Density....................................           0.086  ..............  ..............  ..............
Saturation......................................           0.081  ..............  ..............  ..............
----------------------------------------------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or 3.3407 ounces for heavy letters); flat-size  
  at 16 ounces.                                                                                                 


[[Page 42488]]


* * * * *
[Revise the heading of 5.0 to read as follows:]
5.0  Preferred--Science-of-Agriculture
* * * * *

R600  Standard Mail

* * * * *
[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       $0.149       $0.171       $0.125
DBMC........................................................        0.182        0.136        0.158        0.112
DSCF........................................................        0.177        0.131        0.153        0.107
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       $0.484       $0.455       $0.484
    DBMC....................................................        0.393        0.422        0.393        0.422
    DSCF....................................................        0.367        0.396        0.367        0.396
    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 to text; add new 6.0 to read as follows:]
6.0  Nonprofit Enhanced Carrier Route

6.1  Letter-Size Minimum Per Piece Rates--Pieces 0.2084 lb. (3.3348 
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.                                              

6.2  Nonletter-Size Minimum Per Piece Rates--Pieces 0.2084 lb. 
(3.3348 oz.) or Less

----------------------------------------------------------------------------------------------------------------
                      Entry discount                              Basic         High density       Saturation   
----------------------------------------------------------------------------------------------------------------
None......................................................            $0.107            $0.100            $0.094
DBMC......................................................             0.094             0.087             0.081
DSCF......................................................             0.089             0.082             0.076
DDU.......................................................             0.083             0.076             0.070
----------------------------------------------------------------------------------------------------------------


[[Page 42489]]



6.3  Piece/Pound Rates--Pieces More Than 0.2084 lb. (3.3348 oz.)

----------------------------------------------------------------------------------------------------------------
                   Piece/pound rate \1\                           Basic         High density       Naturation   
----------------------------------------------------------------------------------------------------------------
Per Piece.................................................            $0.013            $0.006            $0.000
Per Pound (includes entry discount if applicable)                       Plus              Plus              Plus
    None..................................................            $0.451            $0.451             $0.451
    DBMC..................................................              0.389             0.389             0.389
    DSCF..................................................              0.363             0.363             0.363
    DDU                                                                 0.337             0.337             0.337
----------------------------------------------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.                                                

* * * * *
[Revise redesignated 10.0 to read as follows:]

10.0  Library Mail

----------------------------------------------------------------------------------------------------------------
                                               Weight not over                   Weight not over                
  Weight not over (pounds)      Single-piece       (pounds)       Single-piece       (pounds)      Single-piece 
----------------------------------------------------------------------------------------------------------------
1...........................           $1.12   24.............           $7.32   47.............          $12.38
2...........................            1.53   25.............            7.54   48.............           12.60
3...........................            1.94   26.............            7.76   49.............           12.82
4...........................            2.35   27.............            7.98   50.............           13.04
5...........................            2.76   28.............            8.20   51.............           13.26
6...........................            3.17   29.............            8.42   52.............           13.48
7...........................            3.58   30.............            8.64   53.............           13.70
8...........................            3.80   31.............            8.86   54.............           13.92
9...........................            4.02   32.............            9.08   55.............           14.14
10..........................            4.24   33.............            9.30   56.............           14.36
11..........................            4.46   34.............            9.52   57.............           14.58
12..........................            4.68   35.............            9.74   58.............           14.80
13..........................            4.90   36.............            9.96   59.............           15.02
14..........................            5.12   37.............           10.18   60.............           15.24
15..........................            5.34   38.............           10.40   61.............           15.46
16..........................            5.56   39.............           10.62   62.............           15.68
17..........................            5.78   40.............           10.84   63.............           15.90
18..........................            6.00   41.............           11.06   64.............           16.12
19..........................            6.22   42.............           11.28   65.............           16.34
20..........................            6.44   43.............           11.50   66.............           16.56
21..........................            6.66   44.............           11.72   67.............           16.78
22..........................            6.88   45.............           11.94   68.............           17.00
23..........................            7.10   46.............           12.16   69.............           17.22
                              ...............  ...............  ...............  70.............           17.44
----------------------------------------------------------------------------------------------------------------

* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 96-20816 Filed 8-12-96; 1:21 pm]
BILLING CODE 7710-12-P