[Federal Register Volume 62, Number 41 (Monday, March 3, 1997)]
[Notices]
[Pages 9455-9469]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4986]


=======================================================================
-----------------------------------------------------------------------

POSTAL RATE COMMISSION

[Parcel Classification Reform Docket No. MC97-2]


Notice of Request for Changes in Domestic Mail Classification 
Schedule Provisions and Rates for Parcel Services and Order Instituting 
Proceedings

    Issued February 24, 1997.


[[Page 9456]]


    Before Commissioners: Edward J. Gleiman, Chairman; H. Edward 
Quick, Jr., Vice Chairman; George W. Haley; W.H. ``Trey'' LeBlanc 
III.

    Notice is hereby given that on February 21, 1997, the United States 
Postal Service filed a Request with the Postal Rate Commission pursuant 
to Sec. 3623 of the Postal Reorganization Act, 39 U.S.C. Secs. 101 et 
seq., for a recommended decision on proposed changes in the Domestic 
Mail Classification Schedule (DMCS). The proposed revisions also 
include proposed new rates and fees. The Request includes attachments 
and is supported by the testimony of 13 witnesses and 46 library 
references. It is on file in the Commission Docket Room and is 
available for inspection during the Commission's regular business 
hours.

Contents of the Filing

    The Service's Request incorporates significant changes in mail 
classification affecting parcels in the following subclasses of 
Standard Mail: Single Piece, Regular, Enhanced Carrier Route, Parcel 
Post, and Bound Printed Matter. The following summarizes the proposed 
classification changes on a subclass-by-subclass basis:

Single Piece

     Introduction of a parcel return service with rates below 
those currently applicable to returned single pieces.
     Introduction of a new forwarding service.

Regular Presort and Enhanced Carrier Route

     Establishment of a surcharged rate category for parcel-
shaped items.

Parcel Post

     Re-introduction of a charge for bulky, lighter-weight 
parcel post.
     Adoption of an increase in the maximum permissible parcel 
size.
     Introduction of discounts for BMC presort and origin BMC 
entry.
     Introduction of discounts for DSCF entry combined with 
five-digit presort.
     Introduction of a discount for destination delivery unit 
entry.

Bound Printed Matter

     Adoption of an increase in the maximum weight limit.
    The Postal Service Request also proposes changes that would apply 
across several different mail classifications. For all categories of 
Standard Mail weighing 16 ounces or more, the Service proposes:
     Introduction of prebarcode discounts; and
     Introduction of a delivery confirmation service using 
barcoded peel-off labels.
    The Service also proposes the introduction of bulk rates tied to 
electronically-transmitted information for users of the Insurance 
special service who send First-Class, Priority, Parcel Post, Bound 
Printed Matter, Special, and Library Mail. Finally, the Service 
requests establishment of surcharges for hazardous medical materials 
and other mailable hazardous materials contained in First-Class, 
Priority, Express Mail, Standard Single Piece, Regular, Enhanced 
Carrier Route, and Parcel Post parcels.
    In addition to proposed changes in mail classification, the Postal 
Service Request incorporates proposed adjustments in current postal 
rates and fees. The Service proposes revisions in Parcel Post rates to 
reflect revisions in transportation and processing cost information, 
and in the DBMC discounts available for Parcel Post to reflect current 
cost data. The Service also proposes to increase the fee for the pickup 
service available for Express Mail, Priority Mail, and Parcel Post.

Effect on Net Revenue

    Unlike the Postal Service's earlier classification reform requests 
in Docket Nos. MC95-1 and MC96-2, its proposal in this docket is not 
intended to have a neutral effect on its overall net revenue. The 
Postal Service estimates that if its proposals in this docket were in 
effect throughout FY 1997, they would increase system revenues by $90.8 
million while decreasing system costs by $35.4 million, for a net 
increase in system revenue of $126.2 million. USPS-T-1 at 7.

Cost and Roll-Forward Methodologies

    In the past, interim Postal Service filings used the same base year 
and test year that were used in the most recent omnibus rate 
proceeding. This provided a consistent basis for comparing the cost and 
revenue effects of proposed interim changes with the cost and revenue 
effects of the general rate and classification schedules in place. In 
this interim filing, evaluation of the Postal Service's proposed 
changes is complicated by use of a base year (FY 1995) and a test year 
(FY 1997) that were not used to evaluate the rate and classification 
schedules emanating from Docket Nos. R94-1, MC95-1 and MC96-2. The 
Service's filing also develops base year costs solely by the methods 
that the Postal Service uses in its own Cost and Revenue Analysis 
Report (CRA). It does not follow the Commission's approved costing 
methods as far as practical, as the Postal Service's filing did in 
Docket No. MC93-1, nor does it describe and explain its departures from 
them, as the Postal Service's filing did in the last omnibus rate 
proceeding, Docket No. R94-1. Direct Testimony of Richard Patelunas on 
Behalf of the United States Postal Service, USPS-T-5, at 5-8.

Proposed DMCS Provisions

    The Postal Service's Request proposes changes in the current 
Domestic Mail Classification Schedule (DMCS), which was extensively 
revised as the result of the first mail classification reform 
proceeding, Docket No. MC95-1. The DMCS is codified at 39 CFR Part 
3001, Subpart C, Appendix A. In Attachment A to its Request, the Postal 
Service displays the changes it proposes in the version of the DMCS 
currently in effect.1 These proposed revisions accompany this 
Notice as Attachment A.
---------------------------------------------------------------------------

    \1\ Proposed changes in the DMCS unrelated to the Postal 
Service's Request in this proceeding are pending in Commission 
Docket Nos. MC96-2, MC96-3, and MC97-1.
---------------------------------------------------------------------------

Proposed Rate and Fee Schedules

    In Attachment B to its Request, the Postal Service displays changes 
it proposes to the various rate and fee schedules currently in effect. 
Most of these proposed rate and fee changes correspond to the revisions 
the Postal Service proposes in the DMCS; however, some of the proposed 
changes would adjust rates or fees for current mail classifications on 
the basis of estimated cost changes or other rationales. These changes 
occur in rates for the Parcel Post subclass and the fee for the Pickup 
service available for Express Mail, Priority Mail, and Parcel Post. The 
Postal Service's requested changes in rates and fees accompany this 
Notice as Attachment B.

Intervention

    Participation in Commission proceedings generally takes the form of 
either full intervention or limited participation. See sections 20 and 
20a of the Commission rules of practice [39 CFR Sec. 3001.20 and .20a]. 
For those wishing to express their views informally, without incurring 
the obligations that attach to the other two forms of participation, 
commenter status is available. See section 20b [39 CFR Sec. 3001.20b]. 
Those wishing to be heard in this matter as either a full intervenor or 
limited participant are directed to file a written notice of 
intervention in conformance with section 20(b) or 20a(a), identifying 
the status they intend to assume and affirmatively stating how actively 
they expect to participate. In

[[Page 9457]]

addition, intervenors are requested to provide a telephone number, 
facsimile number, and e-mail address, if available. [See proposed 
Special Rule 3A, infra.]
    Notices of intervention should be sent to the attention of Margaret 
P. Crenshaw, Secretary of the Commission, 1333 H Street, NW, Suite 300, 
Washington, D.C. 20268-0001, and are to be filed on or before March 18, 
1997. Commenter status does not require a notice of intervention.

Representation of the General Public

    In conformance with section 3624(a) of title 39, the Commission 
designates W. Gail Willette, Director of the Office of the Consumer 
Advocate (OCA), to represent the interests of the general public in 
this proceeding. Pursuant to this designation, Ms. Willette will direct 
the activities of Commission personnel assigned to assist her and, when 
requested, will supply their names for the record. Neither Ms. Willette 
nor any of the assigned personnel will participate in or provide advice 
on any Commission decision in this proceeding.

Special Rules of Practice

    The Commission proposes conducting this proceeding pursuant to the 
special rules of practice set forth in Attachment C. These rules 
reflect the special rules implemented in Docket Nos. MC96-2 and MC96-3, 
with two exceptions. The proposed special rules shorten the time for 
providing certain pleadings and answers to discovery from 14 days to 12 
days, and eliminate provisions allowing for voluntary, alternative 
service of documents by electronic filing. In conducting its experiment 
with the electronic filing of case-related documents, the Commission 
observed a number of functional problems, some of which remain 
unresolved. Consequently, the Commission suspended the filing of 
documents by e-mail, effective February 4, 1997. See Secretary's Notice 
to Intervenors, February 4, 1997, appended hereto as Attachment D. 
However, participants who are capable of filing documents as word 
processing files stored on diskettes may avail themselves of an 
alternative method of filing them with the Commission, together with a 
reduced number of paper copies. See Special Rule of Practice 3.B.

Initial Prehearing Conference: Date, Location, and Agenda

    The Commission will convene a prehearing conference at 2:00 p.m. on 
Thursday, March 20, 1997, in the Commission's hearing room at 1333 H 
Street, N.W., Suite 300, Washington, D.C. The Commission asks that 
persons attending the conference be prepared to discuss procedural and 
scheduling matters pertinent to the Service's filing.
    Participants are to file a notice of issues they would like to 
raise for consideration at the prehearing conference. Suggestions need 
not be limited to procedural matters, but may include substantive 
issues to the extent that considering them at this stage might expedite 
the proceeding. An agenda incorporating participants' suggestions will 
be distributed at the beginning of the prehearing conference.

Docket Room Operations

    Documents may be filed with the Commission's docket section Monday 
through Friday between 8 a.m. and 5 p.m. Questions about docket room 
operations should be directed to Ms. Peggie Brown (at 202-789-6847) or 
Ms. Joyce Taylor (at 202-789-6846).
    It is ordered:
    1. The Commission will sit en banc in this proceeding.
    2. Notices of intervention shall be filed no later than March 18, 
1997.
    3. A prehearing conference will be held Thursday, March 20, 1997 at 
2:00 p.m. in the Commission's hearing room.
    4. Participants are to file notices of issues they intend to raise 
at the prehearing conference by March 18, 1997.
    5. Comments on the proposed special rules of practice set out in 
Attachment C should be filed by March 18, 1997.
    6. W. Gail Willette, Director of the Commission's Office of the 
Consumer Advocate, is designated to represent the interest of the 
general public in this proceeding.
    7. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.

    By the Commission.
Margaret P. Crenshaw,
Secretary.

Requested Changes in the Domestic Mail Classification Schedule

    In this Request, the Postal Service asks the Commission to 
recommend certain changes in the Domestic Mail Classification Schedule 
(DMCS). The changes requested herein alter the DMCS recommended by the 
Commission on November 29, 1978, adopted by decision of the Governors 
and implemented by resolution of the Board of Governors on April 3, 
1979, effective April 15, 1979, and as amended from time-to-time, most 
recently by the decision of the Governors approving the Recommended 
Decision of the Commission on Nonprofit Regular Standard Mail, 
Nonprofit Enhanced Carrier Route Standard Mail, Nonprofit Periodicals 
and Within County Periodicals, Docket No. MC96-2, as implemented by 
resolution of the Board of Governors adopted on August 5, 1996, 
effective October 6, 1996. The current DMCS (which is published in part 
at 39 CFR Part 3001, subpart C, appendix A, and in part as Attachment B 
to the Decision of the Governors of the United States Postal Service On 
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 
(61 Fed. Reg. 42,464)), is incorporated by reference in this Request.
    Proposed additions to text of the classification schedule are 
underlined; proposed deletions are in brackets. The changes in the DMCS 
requested by the Postal Service are as follows:

EXPEDITED MAIL CLASSIFICATION SCHEDULE

* * * * *
170  RATES AND FEES
    171  Express Mail. The rates for Express Mail are set forth in the 
following rate schedules:

------------------------------------------------------------------------
                                                               Schedule 
------------------------------------------------------------------------
a. Same Day Airport.........................................         121
b. Custom Designed..........................................         122
c. Next Day Post Office-to-Post Office......................         123
d. Second Day Post Office-to-Post Office....................         123
e. Next Day Post Office-to-Addressee........................         123
f. Second Day Post Office-to-Addressee......................         123
------------------------------------------------------------------------

    172  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Express Mail containing hazardous medical 
materials or other mailable hazardous materials, as defined by the 
Postal Service, must meet the preparation requirements of the Postal 
Service and is subject to one or both surcharges.
* * * * *

FIRST-CLASS MAIL CLASSIFICATION SCHEDULE

* * * * *
220  DESCRIPTION OF SUBCLASSES
221  Letters and Sealed Parcels Subclass
* * * * *
    221.5  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Letters and

[[Page 9458]]

Sealed Parcels subclass mail containing hazardous medical materials or 
other mailable hazardous materials, as defined by the Postal Service, 
must meet the preparation requirements of the Postal Service and is 
subject to one or both surcharges.
* * * * *
223  Priority Mail
* * * * *
    223.8  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Priority Mail containing hazardous medical 
materials or other mailable hazardous materials, as defined by the 
Postal Service, must meet the preparation requirements of the Postal 
Service and is subject to one or both surcharges.
* * * * *

STANDARD MAIL CLASSIFICATION SCHEDULE

* * * * *
320  DESCRIPTION OF SUBCLASSES
321  Subclasses Limited to Mail Weighing Less than 16 Ounces
321.1  Single Piece Subclass
* * * * *
    321.15  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Single Piece subclass mail containing hazardous 
medical materials or other mailable hazardous materials, as defined by 
the Postal Service, must meet the preparation requirements of the 
Postal Service and is subject to one or both surcharges.
321.2  Regular Subclass
* * * * *
    321.25  Residual Shape Surcharge. Regular subclass mail is subject 
to a surcharge if it is not letter-, card-, or flat-shaped.
    321.26  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Regular subclass mail containing hazardous 
medical materials or other mailable hazardous materials, as defined by 
the Postal Service, must meet the preparation requirements of the 
Postal Service and is subject to one or both surcharges.
* * * * *
321.3  Enhanced Carrier Route Subclass
* * * * *
    321.37  Residual Shape Surcharge. Enhanced Carrier Route subclass 
mail is subject to a surcharge if it is not letter-, card-, or flat-
shaped.
    321.38 Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Enhanced Carrier Route subclass mail containing 
hazardous medical materials or other mailable hazardous materials, as 
defined by the Postal Service, must meet the preparation requirements 
of the Postal Service and is subject to one or both surcharges.
321.4  Nonprofit Subclass
* * * * *
    321.45  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Nonprofit subclass mail containing hazardous 
medical materials or other mailable hazardous materials, as defined by 
the Postal Service, must meet the preparation requirements of the 
Postal Service and is subject to one or both surcharges.
    321.5  Nonprofit Enhanced Carrier Route Subclass
* * * * *
    321.57  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Nonprofit Enhanced Carrier Route subclass mail 
containing hazardous medical materials or other mailable hazardous 
materials, as defined by the Postal Service, must meet the preparation 
requirements of the Postal Service and is subject to one or both 
surcharges.
322  Subclasses Limited to Mail Weighing 16 Ounces or More
322.1  Parcel Post Subclass
    322.11  Definition. The Parcel Post subclass consists of Standard 
Mail weighing 16 ounces or more that is not mailed under sections 
322.2, 322.3, 323.1, or 323.2.
    [322.12  Basic Rate Category. The basic rate category applies to 
all Parcel Post subclass mail not mailed under sections 322.13 or 
322.14.]

322.12  Description of Rate Categories

    322.121  Inter-BMC Rate Category. Inter-BMC Parcel Post rates apply 
to all Parcel Post not mailed under sections 322.122, 322.123, 322.124, 
or 322.125.
    322.122  Intra-BMC Rate Category. Intra-BMC rates apply to Parcel 
Post mail originating and destinating within a designated BMC or 
auxiliary service facility service area, Alaska, Hawaii or Puerto Rico.
    322.123  Destination Bulk Mail Center (DBMC) Rate Category. DBMC 
rates apply to Parcel Post mail prepared as prescribed by the Postal 
Service in a mailing of at least 50 pieces deposited at a designated 
destination BMC, auxiliary service facility, or other equivalent 
facility, as prescribed by the Postal Service.
    322.124  Destination Sectional Center Facility (DSCF) Rate 
Category. DSCF rates apply to Parcel Post mail prepared as prescribed 
by the Postal Service in a mailing of at least 50 pieces sorted to five 
digits as prescribed by the Postal Service and entered at a designated 
destination processing and distribution center or facility, or other 
equivalent facility, as prescribed by the Postal Service.
    322.125  Destination Delivery Unit (DDU) Rate Category. DDU rates 
apply to Parcel Post mail prepared as prescribed by the Postal Service 
in a mailing of at least 50 pieces, and deposited at a designated 
destination delivery unit, or other equivalent facility, as prescribed 
by the Postal Service.
322.13  [Reserved]
[400.0202  Bulk
    Bulk parcel post mail is fourth-class parcel post mail consisting 
of properly prepared and separated single mailings of at least 300 
pieces or 2000 pounds. Pieces weighing less than 15 pounds and 
measuring over 84 inches in length and girth combined are not mailable 
as bulk parcel post. Provision for mailing nonidentical pieces is set 
forth in section 400.046.]
    [322.14  Destination BMC Rate Category. Parcel Post subclass mail 
is eligible for destination BMC rates if it is included in a mailing of 
at least 50 pieces deposited at the destination BMC, auxiliary service 
facility, or other equivalent facility, as prescribed by the Postal 
Service.]

322.14  Bulk Mail Center (BMC) Presort Discounts

    322.141  Machinable BMC Presort Discount. The machinable BMC 
presort discount applies to machinable Inter-BMC Parcel Post mail that 
is prepared as prescribed by the Postal Service in a mailing of 50 or 
more pieces, deposited at a facility authorized by the Postal Service, 
and sorted to destination BMCs, as prescribed by the Postal Service.
    322.142  Nonmachinable BMC Presort Discount. The nonmachinable BMC 
presort discount applies to nonmachinable Inter-BMC Parcel Post mail 
that is prepared as prescribed by the Postal Service in a mailing of 50 
or more pieces, deposited at a facility authorized by the Postal 
Service, and sorted to destination BMCs, as prescribed by the Postal 
Service.
    322.143  Origin Bulk Mail Center (OBMC) Discount. The Origin BMC 
Parcel Post discount applies to Inter-BMC Parcel Post mail that is 
prepared as prescribed by the Postal Service in a

[[Page 9459]]

mailing of at least 50 pieces, deposited at the origin BMC, and sorted 
to destination BMCs, as prescribed by the Postal Service.
    [322.15  Intra-BMC Discount. Basic rate category Parcel Post 
subclass mail is eligible for the intra-BMC discount if it originates 
and destinates within the same BMC or auxiliary service facility 
service area, Alaska, Hawaii or Puerto Rico.]
    322.15  Barcoded Discount. The barcoded discount applies to Inter-
BMC, Intra-BMC, and DBMC Parcel Post mail that is entered at designated 
facilities, bears a barcode prescribed by the Postal Service, is 
prepared as prescribed by the Postal Service in a mailing of at least 
50 pieces, and meets all other preparation and machinability 
requirements of the Postal Service.

322.16  Oversized Parcel Post

    322.161  Excessive Length and Girth. Parcel Post pieces exceeding 
108 inches in length and girth combined, but not greater than 130 
inches in length and girth combined, are mailable, provided that such 
pieces constitute no more than 10 percent of the total number of Parcel 
Post pieces mailed as a part of a single mailing. If mailable, such 
pieces are subject to the applicable rates for the 70 pound weight 
increment.
    322.162  Balloon Rate. Parcel Post pieces exceeding 84 inches in 
length and girth combined and weighing less than 15 pounds are subject 
to a rate equal to that for a 15 pound parcel for the zone to which the 
parcel is addressed.
    322.1[6]7  Nonmachinable Surcharge. [Basic rate category Parcel 
Post subclass mail] Inter-BMC Parcel Post that does not meet 
machinability criteria prescribed by the Postal Service is subject to a 
nonmachinable surcharge.
    322.1[7]8  Pickup Service. Pickup service is available for Parcel 
Post [subclass] mail under terms and conditions prescribed by the 
Postal Service.
    322.19  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Parcel Post mail containing hazardous medical 
materials or other mailable hazardous materials, as defined by the 
Postal Service, must meet the preparation requirements of the Postal 
Service and is subject to one or both surcharges.
322.2  Bulk Parcel Post
    Bulk parcel post mail is Parcel Post mail consisting of properly 
prepared and separated single mailings of at least 300 pieces or 2000 
pounds. Pieces weighing less than 15 pounds and measuring over 84 
inches in length and girth combined are not mailable as bulk parcel 
post.
322.3  Bound Printed Matter Subclass
    322.31  Definition. The Bound Printed Matter subclass consists of 
Standard Mail weighing at least 16 ounces, but not more than [10]15 
pounds, which:
* * * * *
    322.35  Barcoded Discount. The barcoded discount applies to Single-
Piece and Bulk Rate Bound Printed Matter that is entered at designated 
facilities, bears a barcode prescribed by the Postal Service, is 
prepared as prescribed by the Postal Service in a mailing of at least 
50 pieces, and meets all other preparation and machinability 
requirements of the Postal Service.
323  Subclasses With No 16-Ounce Limitation
323.1  Special Subclass
* * * * *
    322.15  Barcoded Discount. The barcoded discount applies to Single 
Piece and Level B Presort Special subclass mail that is entered at 
designated facilities, bears a barcode prescribed by the Postal 
Service, is prepared as prescribed by the Postal Service in a mailing 
of at least 50 pieces, and meets all other preparation and 
machinability requirements of the Postal Service.
323.2  Library Subclass
* * * * *
    323.23  Barcoded Discount. The barcoded discount applies to Library 
subclass mail that is entered at designated facilities, bears a barcode 
prescribed by the Postal Service, is prepared as prescribed by the 
Postal Service in a mailing of at least 50 pieces, and meets all other 
preparation and machinability requirements of the Postal Service.
    323.24  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Library subclass mail containing hazardous 
medical materials or other mailable hazardous materials, as defined by 
the Postal Service, must meet the preparation requirements of the 
Postal Service and is subject to one or both surcharges.
330  PHYSICAL LIMITATIONS
331  Size
    Except as provided in 322.161, Standard Mail may not exceed 108 
inches in length and girth combined. Additional size limitations apply 
to individual Standard Mail subclasses. The maximum size for mail 
presorted to carrier route in the Enhanced Carrier Route and Nonprofit 
Enhanced Carrier Route subclasses is 14 inches in length, 11.75 inches 
in width, and 0.75 inch in thickness. For merchandise samples mailed 
with detached address cards, the carrier route maximum dimensions apply 
to the detached address cards and not to the samples.
* * * * *
350  DEPOSIT AND DELIVERY
* * * * *
353 Forwarding and Return
353.1  Single Piece, Regular, Enhanced Carrier Route, Nonprofit and 
Nonprofit Enhanced Carrier Route Subclasses (section 321)
    Undeliverable-as-addressed Standard Mail mailed under section 321 
will be returned on request of the mailer, or forwarded and returned on 
request of the mailer. Undeliverable-as-addressed combined First-Class 
and Standard pieces will be returned as prescribed by the Postal 
Service. Except as provided in Schedule SS-21, [T]the Single Piece 
Standard rate is charged for each piece receiving return only service. 
Except as provided in Schedule SS-22, [C]charges for forwarding-and-
return service are assessed only on those pieces which cannot be 
forwarded and are returned. Except as provided in Schedules SS-21 and 
SS-22, [T]the charge for those returned pieces is the appropriate 
Single Piece Standard rate for the piece plus that rate multiplied by a 
factor equal to the number of section 321 Standard pieces nationwide 
that are successfully forwarded for every one piece that cannot be 
forwarded and must be returned.
* * * * *
360  ANCILLARY SERVICES
* * * * *
362  Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library Subclasses
    Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library subclass mail will receive the following additional services 
upon payment of the appropriate fees:

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Certificates of mailing.................  SS-4                       
b. COD.....................................  SS-6                       
c. Insured mail............................  SS-9                       
d. Special delivery........................  SS-17                      
e. Special handling........................  SS-18                      
f. Return receipt (merchandise only).......  SS-16                      
Merchandise return.........................  SS-20                      

[[Page 9460]]

                                                                        
h. Delivery Confirmation (excluding Single-  PSS-7                      
 Piece).                                                                
------------------------------------------------------------------------

    Insurance, special delivery, special handling, and COD services may 
not be used selectively for individual pieces in a multi-piece [Parcel 
Post subclass] Standard Mail mailing unless specific methods approved 
by the Postal Service for ascertaining and verifying postage are 
followed.

363  Regular and Nonprofit

    Regular and Nonprofit subclass mail will receive the following 
additional services upon payment of the appropriate fees:

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Bulk Parcel Return Service..............  SS-21                      
b. Shipper-Paid Forwarding.................  SS-22                      
------------------------------------------------------------------------

370  RATES AND FEES
    The rates and fees for Standard Mail are set forth as follows:

------------------------------------------------------------------------
                                                       Schedule         
------------------------------------------------------------------------
a. Single Piece subclass...................  321.1                      
b. Regular subclass........................  321.2                      
c. Enhanced Carrier Route subclass.........  321.3                      
d. Nonprofit subclass......................  321.4                      
e. Nonprofit Enhanced Carrier Route          321.5                      
 subclass.                                                              
f. Parcel Post subclass                                                 
  [Basic]Inter-BMC.........................  322.1A                     
  Intra-BMC................................  322.1B                     
  Destination BMC..........................  322.1[B]C                  
  Destination SCF..........................  322.1D                     
  Destination Delivery Unit................  322.1E                     
g. Bound Printed Matter subclass                                        
  Single Piece.............................  322.3A                     
  Bulk and Carrier Route...................  322.3B                     
h Special subclass.........................  323.1                      
i. Library subclass........................  323.2                      
j. Fees....................................  1000                       
------------------------------------------------------------------------

380  AUTHORIZATIONS AND LICENSES
* * * * *
383  Parcel Post Subclass
    A mailing fee as set forth in Rate Schedule 1000 must be paid once 
each year by mailers of Destination BMC, Destination SCF or Destination 
Delivery Unit rate category mail in the Parcel Post subclass.
* * * * *

CLASSIFICATION SCHEDULE SS-4--CERTIFICATE OF MAILING

* * * * *
4.03  Other Services
     4.030  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this 
classification schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. Parcel airlift.........................  SS-13                       
b. Special delivery.......................  SS-17                       
c. Special handling.......................  SS-18                       
d. Delivery confirmation..................  SS-7                        
------------------------------------------------------------------------

* * * * *

CLASSIFICATION SCHEDULE SS-6--COLLECT ON DELIVERY SERVICE

* * * * *
6.06  Other Services
    6.060  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this 
classification schedule upon payment of the applicable fee:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. Registered mail, if sent as First-Class  SS-14                       
b. Restricted delivery....................  SS-15                       
c. Special delivery.......................  SS-17                       
d. Special handling.......................  SS-18                       
e. Delivery confirmation..................  SS-7                        
------------------------------------------------------------------------

* * * * *

CLASSIFICATION SCHEDULE SS-7--DELIVERY CONFIRMATION

7.01  Definition

    7.010  Delivery confirmation service provides confirmation to the 
mailer that an article was delivered or that a delivery attempt was 
made.

7.02  Description of Service

    7.020  Delivery confirmation is available for a fee for Parcel 
Post, Bound Printed Matter, Special, and Library subclass mail.
    7.021  Delivery Confirmation service may be requested at the time 
of mailing only.
    7.022  Mail for which Delivery Confirmation is requested must meet 
the preparation and barcoding requirements of the Postal Service.
    7.023  Matter for which delivery confirmation is requested must be 
deposited in a manner specified by the Postal Service.

7.03  Fees

    7.030  The fees for delivery confirmation service are set forth in 
Rate Schedule SS-7.
* * * * *

CLASSIFICATION SCHEDULE SS-9--INSURED MAIL

* * * * *
9.02  Description of Service
* * * * *
9.021  Availability
    9.0210  Retail [Insured] insurance [mail service] is available for 
mail sent under the following classification schedules:
    a. First-Class Mail, if containing matter which may be mailed as 
Standard Mail
    b. Single Piece, Parcel Post, Bound Printed Matter, Special, and 
Library [Standard M] subclass mail.
    9.0211  Bulk insurance service is available for mail entered in 
bulk at designated facilities and in a manner prescribed by the Postal 
Service and sent under the following classification schedules:
    a. First-Class Mail, if containing matter that may be mailed as 
Standard Mail,
    b. Parcel Post, Bound Printed Matter, Special, and Library subclass 
mail
* * * * *
9.023  Coverage
    9.0230  Retail insurance provides indemnity for the actual value of 
the article at the time of mailing.
    9.0231  Bulk insurance provides indemnity for the lesser of (1) the 
actual value of the article at the time of mailing, or (2) the 
wholesale cost of the contents to the sender.
    9.024  Accountability and Recordkeeping
    9.0240  For retail insurance, the mailer is issued a receipt for 
each item mailed. For items insured for more than $50, a receipt of 
delivery is obtained by the Postal Service.
    9.0241  For items insured for more than $50, a notice of arrival is 
left at the mailing address when the first attempt at delivery is 
unsuccessful.
    9.0242  Bulk insurance bears endorsements and identifiers 
prescribed by the Postal Service. Bulk insurance mailers must meet the 
documentation requirements of the Postal Service.
9.025  Claims
    9.0250  For retail insurance, a [A] claim for complete loss may be 
filed by the mailer only. A claim for damage or for partial loss may be 
filed by either the mailer or addressee.
    9.0251  For bulk insurance, all claims must be filed by the mailer.
[9.026]
    9.0252  A claim for damage or loss on a parcel sent merchandise 
return

[[Page 9461]]

(SS-20) may only be filed by the purchaser of the insurance.
[9.027]
    9.0253  Indemnity claims for insured mail must be filed within a 
specified period of time from the date the article was mailed.[9.028 
Additional copies of the original mailing receipt may be obtained by 
the mailer, upon payment of the applicable fee set forth in Rate 
Schedule SS-9.]
    9.03  Deposit of Mail
    9.030  Retail and bulk Insured mail must be deposited [in a manner] 
as specified by the Postal Service.
* * * * *
9.05  Other Services
    9.050  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this 
classification schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. Parcel Airlift.........................  SS-13                       
b. Restricted delivery (for items insured   SS-15                       
 for more than $50).                                                    
c. Return receipt (for items insured for    SS-16                       
 more than $50).                                                        
d. Special delivery.......................  SS-17                       
e. Special handling.......................  SS-18                       
f. Merchandising return (shippers only)...  SS-20                       
g. Delivery confirmation..................  SS-7                        
------------------------------------------------------------------------

* * * * *

CLASSIFICATION SCHEDULE SS-13--PARCEL AIRLIFT (PAL)

* * * * *
13.07  Other Services
    13.070  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this 
classification schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. Certificate of mailing.................  SS-4                        
b. Insured mail...........................  SS-9                        
c. Restricted delivery (if insured for      SS-15                       
 more than $[25]50).                                                    
d. Return receipt (if insured for more      SS-16                       
 than $[25] 50).                                                        
e. Special delivery (if mailed for          SS-17                       
 delivery within the 48 contiguous states).                             
Special handling..........................  SS-18                       
------------------------------------------------------------------------

* * * * *

CLASSIFICATION SCHEDULE SS-18--SPECIAL HANDLING

* * * * *
18.06  Other Services
    18.060  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this 
classification schedule upon payment of the applicable fees:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. COD mail...............................  SS-6                        
b. Insured mail...........................  SS-9                        
c. Parcel airlift.........................  SS-13                       
Merchandise return (shippers only)........  SS-20                       
e. Delivery confirmation..................  SS-7                        
------------------------------------------------------------------------

* * * * *

CLASSIFICATION SCHEDULE SS-21--BULK PARCEL RETURN SERVICE

21.01  Definition

    21.010  Bulk Parcel Return Service provides a method whereby high-
volume parcel mailers may have undeliverable-as-addressed machinable 
parcels returned to designated postal facilities for pickup by the 
mailer at a predetermined frequency prescribed by the Postal Service or 
delivered by the Postal Service in bulk in a manner and frequency 
prescribed by the Postal Service.

21.02  Description of Service

    21.020  Bulk Parcel Return Service is available only for the return 
of machinable parcels, as defined by the Postal Service, initially 
mailed under the following Standard Mail subclasses: Regular and 
Nonprofit.

21.03  Requirements of the Mailer

    21.030  Mailers must receive authorization from the Postal Service 
to use Bulk Parcel Return Service.
    21.031  To claim eligibility for Bulk Parcel Return Service at each 
facility through which the mailer requests Bulk Parcel Return Service, 
the mailer must demonstrate receipt of a prescribed minimum number of 
returned machinable parcels at a given delivery point in the previous 
postal fiscal year or must demonstrate a high likelihood of receiving 
the prescribed minimum number of returned parcels in postal fiscal year 
for which the service is requested.
    21.032  Payment for Bulk Parcel Return Service is made through 
advance deposit account, or as otherwise specified by the Postal 
Service.
    21.033  Mail for which Bulk Parcel Return Service is requested must 
bear endorsements prescribed by the Postal Service.
    21.034  Bulk Parcel Return Service mailers must meet the 
documentation and audit requirements of the Postal Service.

21.04  Other Services

    21.040  The following services may be purchased in conjunction with 
Bulk Parcel Return Service:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
Address Correction Service................  SS-1                        
Certificate of Mailing....................  SS-4                        
Shipper-Paid Forwarding...................  SS-22                       
------------------------------------------------------------------------

21.05  Fee

    21.050  The fee for Bulk Parcel Return Service is set forth in Rate 
Schedule SS-21.

21.06  Authorizations and Licenses

    21.060  A permit fee as set forth in Rate Schedule 1000 must be 
paid once each calendar year by mailers utilizing Bulk Parcel Return 
Service.
    21.061  The Bulk Parcel Return Service permit may be canceled for 
failure to maintain sufficient funds in an advance deposit account to 
cover postage and fees on returned parcels or for failure to meet the 
specifications of the Postal Service.

CLASSIFICATION SCHEDULE SS-22--SHIPPER-PAID FORWARDING

22.01  Definition

    22.010  Shipper-Paid Forwarding provides a method whereby mailers 
may have undeliverable-as-addressed machinable parcels forwarded at 
Standard Mail Single Piece rates for up to one year from the date that 
the addressee filed a change-of-address order. If the parcel, for which 
Shipper-Paid Forwarding is elected, is returned, the mailer will pay 
the appropriate Standard Mail Single Piece rate, or the Bulk Parcel 
Return Service fee, if that service was elected.

22.02  Description of Service

    22.020  Shipper-Paid Forwarding is available only for the 
forwarding of machinable parcels, as defined by the Postal Service, 
initially mailed under the following Standard Mail subclasses: Regular 
and Nonprofit.

22.03  Requirements of the Mailer

    22.030  Shipper-Paid Forwarding is available only in conjunction 
with automated Address Correction Service in Schedule SS-1.
    22.031  Mail for which Shipper-Paid Forwarding is purchased must 
meet the

[[Page 9462]]

preparation requirements of the Postal Service.
    22.032  Payment for Shipper-Paid Forwarding is made through advance 
deposit account, or as otherwise specified by the Postal Service.
    22.033  Mail for which Shipper-Paid Forwarding is requested must 
bear endorsements prescribed by the Postal Service.

22.04  Other Services

    22.040  The following services may be purchased in conjunction with 
Shipper-Paid Forwarding:

------------------------------------------------------------------------
                                               Classification schedule  
------------------------------------------------------------------------
a. Certificate of Mailing.................  SS-4                        
b. Bulk Parcel Return Service.............  SS-21                       
------------------------------------------------------------------------

22.05  Applicable Rates

    22.050  Except as provided in Schedule SS-21, Standard Mail Single 
Piece rates, set forth in Rate Schedule 321.1, apply to pieces 
forwarded or returned in connection with Shipper-Paid Forwarding.

GENERAL DEFINITIONS, TERMS AND CONDITIONS

* * * * *
2000  Delivery of Mail
* * * * *
2030  Forwarding and Return
* * * * *
    2033  Applicable Provisions. The provisions of sections 150, 250, 
350 and 450 and schedules SS-21 and SS-22 apply to forwarding and 
return.
* * * * *
6000  Mailable Matter
* * * * *
6030  Maximum Size and Weight Standards
    Where applicable, the maximum size and weight standards for each 
class or subclass of mail are set forth in sections 130, 230, 322.16, 
330 and 430. Additional limitations may be applicable to specific 
subclasses, and rate and discount categories as provided in the 
eligibility provisions for each subclass or category.

Requested Changes in the Rate and Fee Schedules

    In conjunction with the requested changes in the Domestic Mail 
Classification Schedule (DMCS) set forth in Attachment A, the Postal 
Service also is requesting that the Commission recommend corresponding 
changes in the attendant rate and special service fee schedules.
    Rate schedules were last amended in part by the decision of the 
Governors approving the Recommended Decision of the Commission on 
Nonprofit Regular Standard Mail, Nonprofit Enhanced Carrier Route 
Standard Mail, Nonprofit Periodicals and Within County Periodicals, 
Docket No. MC96-2, as implemented by resolution of the Board of 
Governors adopted on August 5, 1996, effective October 6, 1996. The 
rate schedules attached to that decision, published at 61 Fed. Reg. 
42,464 and the rate and fee schedules published at 39 CFR Part 3001, 
subpart C, appendix A, and published at 61 Fed. Reg. 10,220, are 
incorporated by reference in this Request.
    Unless otherwise indicated, proposed additions to the text of the 
schedules are underlined; proposed deletions are in brackets. The 
requested changes in the rate and fee schedules are as follows:

                                  Express Mail Rate Schedules 121, 122, and 123                                 
                                                    [Dollars]                                                   
----------------------------------------------------------------------------------------------------------------
                                                                                              Schedule 123 Next 
 Weight Not Exceeding  Schedule 121 Same Day   Schedule 122 Custom   Schedule 123 Next Day   Day and Second Day 
       (Pounds)           Airport Service            Designed         Second Day PO to PO      PO to Addressee  
----------------------------------------------------------------------------------------------------------------
                                                                                                                
----------------------------------------------------------------------------------------------------------------

* * * * *

SCHEDULES 121, 122, AND 123 NOTES

* * * * *
    2. Add [$4.95] $7.75 for each pickup stop.
    3. Add [$4.95] $7.75 for each Custom Designed delivery stop.
    4. Add $0.50 per-piece for hazardous medical materials and $1.00 
per-piece for other mailable hazardous materials.

FIRST-CLASS MAIL RATE SCHEDULE 221 LETTERS and SEALED PARCELS \12\

* * * * *

SCHEDULE 221 NOTES:

* * * * *
    \12\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

FIRST-CLASS MAIL RATE SCHEDULE 223 PRIORITY MAIL SUBCLASS (in dollars)

* * * * *

SCHEDULE 223 NOTES:

* * * * *
    2. Add [$4.95]$7.75 for each pickup stop.
* * * * *
    6. Add $0.50 per-piece for hazardous medical materials and $1.00 
per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.1 SINGLE PIECE SUBCLASS \3\

* * * * *

SCHEDULE 321.1 NOTES:

* * * * *
    \3\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.2A REGULAR SUBCLASS Presort Category 1 
\4\

Letter Size
* * * * *
Non-Letter Size \3\
* * * * *

SCHEDULE 321.2A NOTES:

* * * * *
    \3\ Residual shape surcharge $0.10 per-piece.
    \4\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.2B REGULAR SUBCLASS Automation Category 
1 \10\

* * * * *

SCHEDULE 321.2B NOTES

* * * * *
    \10\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

[[Page 9463]]

STANDARD MAIL RATE SCHEDULE 321.3

Enhanced Carrier Route Subclass 1 \6\

Letter Size
* * * * *
Non-Letter Size \5\
* * * * *

SCHEDULE 321.3 NOTES

* * * * *
    \5\ Residual Shape Surcharge: $0.10 per piece.
    \6\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.4A NONPROFIT SUBCLASS

Presort Categories 1 \3\ (Full rates)

* * * * *

SCHEDULE 321.4A NOTES

* * * * *
    \3\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.4B NONPROFIT SUBCLASS

Automation Categories 1 \10\ (Full Rates)

* * * * *

SCHEDULE 321.4B NOTES

* * * * *
    \10\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.

STANDARD MAIL RATE SCHEDULE 321.5 NONPROFIT ENHANCED CARRIER ROUTE 
SUBCLASS 1 \5\

* * * * *

SCHEDULE 321.5 NOTES

* * * * *
    \5\ Add $0.50 per-piece for hazardous medical materials and 
$1.00 per-piece for other mailable hazardous materials.
    Replace Rate Schedules 322.1A and 322.1B with proposed Rate 
Schedules 322.1A, 322.1B, 322.1C, 322.1D, and 322.1E.

                                                             Standard Mail Rate Schedule 322.1A Parcel Post Subclass Inter-BMC Rates                                                            
                                                                                            [Dollars]                                                                                           
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Zones 1 & 2           Zone 3             Zone 4             Zone 5             Zone 6             Zone 7             Zone 8     
                      Weight (pounds)                       ------------------------------------------------------------------------------------------------------------------------------------
                                                             Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2..........................................................      2.95     2.63      2.95     2.79      2.95     2.87      2.95     2.95      2.95     2.95      2.95     2.95      2.95     2.95
3..........................................................      3.48     2.76      3.61     3.00      3.86     3.34      3.95     3.68      3.95     3.95      3.95     3.95      3.95     3.95
4..........................................................      3.73     2.87      3.97     3.20      4.31     3.78      4.68     4.68      4.95     4.95      4.95     4.95      4.95     4.95
5..........................................................      3.86     2.97      4.31     3.38      4.74     4.10      5.19     5.19      5.84     5.56      5.95     5.95      5.95     5.95
6..........................................................      3.99     3.07      4.62     3.55      5.12     4.39      5.67     5.67      6.90     6.90      7.75     7.75      7.95     7.95
7..........................................................      4.11     3.16      4.82     3.71      5.48     4.67      6.11     6.11      7.51     7.51      9.15     9.15      9.75     9.75
8..........................................................      4.24     3.26      5.01     3.85      5.81     4.91      6.53     6.53      8.08     8.08      9.94     9.94     11.55    11.55
9..........................................................      4.33     3.33      5.19     3.99      6.12     5.16      6.92     6.92      8.62     8.62     10.65    10.65     12.95    12.95
10.........................................................      4.45     3.42      5.36     4.12      6.40     5.38      7.29     7.29      9.12     9.12     11.31    11.31     14.00    14.00
11.........................................................      4.54     3.49      5.53     4.25      6.67     5.59      7.63     7.63      9.59     9.59     11.93    11.93     15.05    15.05
12.........................................................      4.64     3.57      5.68     4.37      6.91     5.79      7.96     7.96     10.03    10.03     12.52    12.52     16.10    16.10
13.........................................................      4.73     3.64      5.81     4.47      7.16     5.98      8.26     8.26     10.45    10.45     13.07    13.07     17.15    17.15
14.........................................................      4.82     3.71      5.97     4.59      7.38     6.16      8.55     8.55     10.84    10.84     13.59    13.59     18.20    18.20
15.........................................................      4.90     3.77      6.10     4.69      7.58     6.34      8.82     8.82     11.22    11.22     14.08    14.08     19.25    19.25
16.........................................................      4.98     3.83      6.23     4.79      7.78     6.50      9.09     9.09     11.58    11.58     14.55    14.55     20.30    20.30
17.........................................................      5.07     3.90      6.34     4.88      7.97     6.66      9.33     9.33     11.92    11.92     15.00    15.00     21.35    21.35
18.........................................................      5.14     3.95      6.46     4.97      8.14     6.81      9.58     9.58     12.24    12.24     15.42    15.42     22.40    22.40
19.........................................................      5.23     4.02      6.58     5.06      8.31     6.95      9.80     9.80     12.55    12.55     15.83    15.83     23.25    23.25
20.........................................................      5.29     4.07      6.68     5.14      8.46     7.08     10.01    10.01     12.84    12.84     16.21    16.21     23.84    23.84
21.........................................................      5.36     4.12      6.80     5.23      8.61     7.21     10.23    10.23     13.12    13.12     16.59    16.59     24.41    24.41
22.........................................................      5.43     4.18      6.89     5.30      8.75     7.34     10.43    10.43     13.39    13.39     16.94    16.94     24.96    24.96
23.........................................................      5.50     4.23      7.01     5.39      8.88     7.47     10.62    10.62     13.66    13.66     17.28    17.28     25.47    25.47
24.........................................................      5.55     4.27      7.10     5.46      9.02     7.58     10.80    10.80     13.90    13.90     17.60    17.60     25.97    25.97
25.........................................................      5.62     4.32      7.19     5.53      9.14     7.70     10.98    10.98     14.14    14.14     17.91    17.91     26.45    26.45
26.........................................................      5.68     4.37      7.28     5.60      9.26     7.81     11.15    11.15     14.37    14.37     18.21    18.21     26.91    26.91
27.........................................................      5.75     4.42      7.37     5.67      9.37     7.91     11.31    11.31     14.59    14.59     18.50    18.50     27.34    27.34
28.........................................................      5.80     4.46      7.46     5.74      9.48     8.02     11.47    11.47     14.81    14.81     18.78    18.78     27.77    27.77
29.........................................................      5.86     4.51      7.55     5.81      9.59     8.12     11.63    11.63     15.01    15.01     19.05    19.05     28.17    28.17
30.........................................................      5.92     4.55      7.63     5.87      9.69     8.21     11.78    11.78     15.20    15.20     19.30    19.30     28.57    28.57
31.........................................................      5.98     4.60      7.70     5.92      9.78     8.31     11.92    11.92     15.39    15.39     19.55    19.55     28.94    28.94
32.........................................................      6.03     4.64      7.79     5.99      9.88     8.40     12.06    12.06     15.58    15.58     19.79    19.79     29.30    29.30
33.........................................................      6.08     4.68      7.87     6.05      9.96     8.49     12.20    12.20     15.76    15.76     20.02    20.02     29.66    29.66
34.........................................................      6.14     4.72      7.93     6.10     10.05     8.57     12.32    12.32     15.94    15.94     20.24    20.24     30.00    30.00
35.........................................................      6.19     4.76      8.01     6.16     10.13     8.66     12.45    12.45     16.11    16.11     20.46    20.46     30.33    30.33
36.........................................................      6.24     4.80      8.07     6.21     10.21     8.75     12.58    12.58     16.27    16.27     20.66    20.66     30.64    30.64
37.........................................................      6.29     4.84      8.14     6.26     10.29     8.82     12.70    12.70     16.43    16.43     20.87    20.87     30.94    30.94
38.........................................................      6.34     4.88      8.22     6.32     10.36     8.91     12.81    12.81     16.57    16.57     21.07    21.07     31.24    31.24
39.........................................................      6.40     4.92      8.28     6.37     10.43     8.98     12.92    12.92     16.72    16.72     21.26    21.26     31.53    31.53
40.........................................................      6.44     4.95      8.35     6.42     10.51     9.05     13.04    13.04     16.86    16.86     21.44    21.44     31.81    31.81
41.........................................................      6.50     5.00      8.42     6.48     10.57     9.12     13.14    13.14     17.00    17.00     21.62    21.62     32.07    32.07
42.........................................................      6.54     5.03      8.48     6.52     10.63     9.19     13.24    13.24     17.14    17.14     21.79    21.79     32.33    32.33
43.........................................................      6.58     5.06      8.54     6.57     10.70     9.27     13.35    13.35     17.28    17.28     21.96    21.96     32.58    32.58
44.........................................................      6.63     5.10      8.59     6.61     10.75     9.33     13.44    13.44     17.41    17.41     22.12    22.12     32.83    32.83
45.........................................................      6.67     5.13      8.66     6.66     10.81     9.40     13.54    13.54     17.52    17.52     22.28    22.28     33.06    33.06
46.........................................................      6.72     5.17      8.72     6.71     10.88     9.46     13.63    13.63     17.65    17.65     22.44    22.44     33.30    33.30
47.........................................................      6.77     5.21      8.78     6.75     10.93     9.52     13.72    13.72     17.77    17.77     22.59    22.59     33.52    33.52
48.........................................................      6.81     5.24      8.84     6.80     10.98     9.59     13.82    13.82     17.88    17.88     22.74    22.74     33.73    33.73
49.........................................................      6.85     5.27      8.89     6.84     11.04     9.65     13.90    13.90     17.99    17.99     22.88    22.88     33.95    33.95
50.........................................................      6.89     5.30      8.94     6.88     11.09     9.70     13.99    13.99     18.10    18.10     23.02    23.02     34.15    34.15
51.........................................................      6.94     5.34      9.00     6.92     11.13     9.77     14.07    14.07     18.20    18.20     23.16    23.16     34.35    34.35
52.........................................................      6.98     5.37      9.06     6.97     11.19     9.82     14.15    14.15     18.31    18.31     23.29    23.29     34.54    34.54
53.........................................................      7.02     5.40      9.11     7.01     11.24     9.87     14.23    14.23     18.42    18.42     23.41    23.41     34.74    34.74
54.........................................................      7.06     5.43      9.17     7.05     11.28     9.93     14.31    14.31     18.51    18.51     23.54    23.54     34.92    34.92
55.........................................................      7.10     5.46      9.20     7.08     11.33     9.99     14.38    14.38     18.61    18.61     23.66    23.66     35.10    35.10
56.........................................................      7.15     5.50      9.27     7.13     11.37    10.04     14.45    14.45     18.70    18.70     23.79    23.79     35.27    35.27
57.........................................................      7.19     5.53      9.32     7.17     11.41    10.09     14.53    14.53     18.80    18.80     23.89    23.89     35.44    35.44
58.........................................................      7.23     5.56      9.36     7.20     11.45    10.14     14.60    14.60     18.89    18.89     24.01    24.01     35.60    35.60
59.........................................................      7.27     5.59      9.41     7.24     11.50    10.19     14.67    14.67     18.97    18.97     24.12    24.12     35.76    35.76
60.........................................................      7.31     5.62      9.46     7.28     11.54    10.25     14.74    14.74     19.07    19.07     24.22    24.22     35.92    35.92
61.........................................................      7.36     5.66      9.52     7.32     11.58    10.29     14.81    14.81     19.14    19.14     24.33    24.33     36.07    36.07

[[Page 9464]]

                                                                                                                                                                                                
62.........................................................      7.40     5.69      9.56     7.35     11.61    10.34     14.87    14.87     19.23    19.23     24.44    24.44     36.22    36.22
63.........................................................      7.42     5.71      9.61     7.39     11.65    10.39     14.93    14.93     19.31    19.31     24.53    24.53     36.37    36.37
64.........................................................      7.46     5.74      9.65     7.42     11.68    10.44     15.00    15.00     19.39    19.39     24.64    24.64     36.50    36.50
65.........................................................      7.50     5.77      9.70     7.46     11.72    10.48     15.06    15.06     19.46    19.46     24.73    24.73     36.64    36.64
66.........................................................      7.55     5.81      9.75     7.50     11.75    10.52     15.13    15.13     19.55    19.55     24.82    24.82     36.77    36.77
67.........................................................      7.59     5.84      9.79     7.53     11.78    10.57     15.18    15.18     19.62    19.62     24.92    24.92     36.91    36.91
68.........................................................      7.62     5.86      9.83     7.56     11.83    10.62     15.24    15.24     19.68    19.68     25.00    25.00     37.04    37.04
69.........................................................      7.66     5.89      9.87     7.59     11.86    10.66     15.30    15.30     19.76    19.76     25.10    25.10     37.15    37.15
70.........................................................      7.70     5.92      9.93     7.64     11.89    10.71     15.35    15.35     19.83    19.83     25.18    25.18     37.28   37.28 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE 322.1A NOTES                                                                                                                                                                           
1. For nonmachinable Inter-BMC parcels, add: $1.25 per-piece.                                                                                                                                   
2. For each pickup stop, add: $7.75.                                                                                                                                                            
3. For Origin Bulk Mail Center Discount, deduct $0.49 per-piece.                                                                                                                                
4. For Machinable BMC Presort, deduct $0.16 per-piece.                                                                                                                                          
5. For Nonmachinable BMC Presort, deduct $0.21 per-piece.                                                                                                                                       
6. For Barcoded Discount, deduct $0.04 per-piece.                                                                                                                                               
7. See 322.16 for oversize parcel post.                                                                                                                                                         
8. Add $0.50 per-piece for hazardous medical materials and $1.00 per-piece for other mailable hazardous materials.                                                                              


                                         Standard Mail Rate Schedule 322.1B Parcel Post Subclass Intra-BMC Rates                                        
                                                                        [Dollars]                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Local           Zones 1 & 2           Zone 3             Zone 4             Zone 5     
                     Weight (pounds)                      ----------------------------------------------------------------------------------------------
                                                           Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current
--------------------------------------------------------------------------------------------------------------------------------------------------------
2........................................................     $2.22    $2.24     $2.51    $2.31     $2.51    $2.47     $2.55    $2.55     $2.63    $2.63
3........................................................      2.30     2.31      2.73     2.44      2.74     2.68      3.02     3.02      3.36     3.36
4........................................................      2.37     2.39      2.94     2.55      2.94     2.88      3.46     3.46      4.36     4.36
5........................................................      2.45     2.45      3.14     2.65      3.14     3.06      3.78     3.78      4.87     4.87
6........................................................      2.51     2.52      3.32     2.75      3.33     3.23      4.07     4.07      5.35     5.35
7........................................................      2.57     2.58      3.49     2.84      3.50     3.39      4.35     4.35      5.79     5.79
8........................................................      2.63     2.74      3.65     2.94      3.66     3.53      4.59     4.59      6.21     6.21
9........................................................      2.69     2.69      3.80     3.01      3.81     3.67      4.84     4.84      6.60     6.60
10.......................................................      2.75     2.75      3.94     3.10      3.94     3.80      5.06     5.06      6.97     6.97
11.......................................................      2.80     2.80      4.08     3.17      4.08     3.93      5.27     5.27      7.31     7.31
12.......................................................      2.85     2.85      4.21     3.25      4.21     4.05      5.47     5.47      7.64     7.64
13.......................................................      2.90     2.91      4.32     3.32      4.32     4.15      5.66     5.66      7.94     7.94
14.......................................................      2.95     2.95      4.41     3.39      4.45     4.27      5.84     5.84      8.23     8.23
15.......................................................      2.99     3.00      4.49     3.45      4.55     4.37      6.02     6.02      8.50     8.50
16.......................................................      3.04     3.05      4.56     3.51      4.66     4.47      6.18     6.18      8.77     8.77
17.......................................................      3.09     3.09      4.65     3.58      4.77     4.56      6.34     6.34      9.01     9.01
18.......................................................      3.13     3.13      4.72     3.63      4.86     4.65      6.49     6.49      9.26     9.26
19.......................................................      3.17     3.17      4.81     3.70      4.95     4.74      6.63     6.63      9.48     9.48
20.......................................................      3.21     3.22      4.88     3.75      5.05     4.82      6.76     6.76      9.69     9.69
21.......................................................      3.25     3.25      4.94     3.80      5.14     4.91      6.89     6.89      9.91     9.91
22.......................................................      3.29     3.29      5.02     3.86      5.22     4.98      7.02     7.02     10.11    10.11
23.......................................................      3.33     3.33      5.08     3.91      5.30     5.07      7.15     7.15     10.30    10.30
24.......................................................      3.37     3.37      5.14     3.95      5.39     5.14      7.26     7.26     10.48    10.48
25.......................................................      3.42     3.41      5.20     4.00      5.47     5.21      7.38     7.38     10.66    10.66
26.......................................................      3.45     3.44      5.27     4.05      5.54     5.28      7.49     7.49     10.83    10.83
27.......................................................      3.49     3.48      5.33     4.10      5.61     5.35      7.59     7.59     10.99    10.99
28.......................................................      3.52     3.51      5.38     4.14      5.69     5.42      7.70     7.70     11.15    11.15
29.......................................................      3.56     3.55      5.45     4.19      5.76     5.49      7.80     7.80     11.31    11.31
30.......................................................      3.59     3.59      5.50     4.23      5.82     5.55      7.89     7.89     11.46    11.46
31.......................................................      3.63     3.62      5.56     4.28      5.89     5.60      7.99     7.99     11.60    11.60
32.......................................................      3.66     3.65      5.62     4.32      5.95     5.67      8.08     8.08     11.74    11.74
33.......................................................      3.69     3.69      5.67     4.36      6.02     5.73      8.17     8.17     11.88    11.88
34.......................................................      3.74     3.72      5.72     4.40      6.08     5.78      8.25     8.25     12.00    12.00
35.......................................................      3.77     3.75      5.77     4.44      6.14     5.84      8.34     8.34     12.13    12.13
36.......................................................      3.80     3.78      5.82     4.48      6.20     5.89      8.43     8.43     12.26    12.26
37.......................................................      3.83     3.81      5.88     4.52      6.26     5.94      8.50     8.50     12.38    12.38
38.......................................................      3.86     3.84      5.93     4.56      6.32     6.00      8.59     8.59     12.49    12.49
39.......................................................      3.90     3.88      5.98     4.60      6.38     6.05      8.66     8.66     12.60    12.60
40.......................................................      3.93     3.91      6.02     4.63      6.43     6.10      8.73     8.73     12.72    12.72
41.......................................................      3.96     3.94      6.08     4.68      6.48     6.16      8.80     8.80     12.82    12.82
42.......................................................      3.99     3.97      6.12     4.71      6.53     6.20      8.87     8.87     12.92    12.92
43.......................................................      4.02     4.00      6.16     4.74      6.58     6.25      8.95     8.95     13.03    13.03
44.......................................................      4.06     4.04      6.21     4.78      6.64     6.29      9.01     9.01     13.12    13.12
45.......................................................      4.09     4.06      6.25     4.81      6.69     6.34      9.08     9.08     13.22    13.22
46.......................................................      4.12     4.09      6.31     4.85      6.74     6.39      9.14     9.14     13.31    13.31
47.......................................................      4.15     4.12      6.36     4.89      6.79     6.43      9.20     9.20     13.40    13.40
48.......................................................      4.17     4.15      6.40     4.92      6.83     6.48      9.27     9.27     13.50    13.50
49.......................................................      4.20     4.18      6.44     4.95      6.88     6.52      9.33     9.33     13.58    13.58
50.......................................................      4.23     4.21      6.47     4.98      6.92     6.56      9.38     9.38     13.67    13.67
51.......................................................      4.26     4.24      6.53     5.02      6.98     6.60      9.45     9.45     13.75    13.75
52.......................................................      4.29     4.26      6.57     5.05      7.02     6.65      9.50     9.50     13.83    13.83
53.......................................................      4.32     4.29      6.60     5.08      7.07     6.69      9.55     9.55     13.91    13.91
54.......................................................      4.34     4.32      6.64     5.11      7.12     6.73      9.61     9.61     13.99    13.99
55.......................................................      4.38     4.35      6.68     5.14      7.16     6.76      9.67     9.67     14.06    14.06
56.......................................................      4.41     4.38      6.73     5.18      7.20     6.81      9.72     9.72     14.13    14.13
57.......................................................      4.44     4.40      6.77     5.21      7.24     6.85      9.77     9.77     14.21    14.21
58.......................................................      4.46     4.43      6.81     5.24      7.29     6.88      9.82     9.82     14.28    14.28
59.......................................................      4.49     4.46      6.85     5.27      7.33     6.92      9.87     9.87     14.35    14.35
60.......................................................      4.52     4.48      6.89     5.30      7.37     6.96      9.93     9.93     14.42    14.42
61.......................................................      4.55     4.52      6.94     5.34      7.41     7.00      9.97     9.97     14.49    14.49
62.......................................................      4.57     4.54      6.98     5.37      7.45     7.03     10.02    10.02     14.55    14.55
63.......................................................      4.60     4.57      7.01     5.39      7.49     7.07     10.07    10.07     14.61    14.61

[[Page 9465]]

                                                                                                                                                        
64.......................................................      4.63     4.59      7.05     5.42      7.53     7.10     10.12    10.12     14.68    14.68
65.......................................................      4.65     4.62      7.09     5.45      7.56     7.14     10.16    10.16     14.74    14.74
66.......................................................      4.69     4.64      7.14     5.49      7.61     7.18     10.20    10.20     14.81    14.81
67.......................................................      4.72     4.68      7.18     5.52      7.65     7.21     10.25    10.25     14.86    14.86
68.......................................................      4.74     4.70      7.20     5.54      7.68     7.24     10.30    10.30     14.92    14.92
69.......................................................      4.77     4.73      7.24     5.57      7.72     7.27     10.34    10.34     14.98    14.98
70.......................................................      4.79     4.75      7.28     5.60      7.75     7.32     10.39    10.39     15.03    15.03
--------------------------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE 322.1B NOTES:                                                                                                                                  
1. For Barcoded Discount, deduct $0.04 per-piece.                                                                                                       
2. See 322.16 for oversize parcel post.                                                                                                                 
3. Add $0.50 per-piece for hazardous medical materials and $1.00 per-piece for other mailable hazardous materials.                                      
4. For each pickup stop, add $7.75.                                                                                                                     


                  Standard Mail Rate Schedule 322.1C Parcel Post Subclass Destination BMC Rates                 
----------------------------------------------------------------------------------------------------------------
                                         Zones 1 & 2           Zone 3             Zone 4             Zone 5     
           Weight (Pounds)           ---------------------------------------------------------------------------
                                      Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current
----------------------------------------------------------------------------------------------------------------
2...................................     $1.97    $2.10     $2.25    $2.25     $2.55    $2.30     $2.63    $2.33
3...................................      2.12     2.22      2.61     2.44      3.02     2.74      3.36     3.00
4...................................      2.26     2.33      2.92     2.62      3.46     3.15      4.36     3.94
5...................................      2.40     2.42      3.14     2.79      3.78     3.45      4.87     4.40
6...................................      2.53     2.51      3.33     2.95      4.07     3.71      5.35     4.83
7...................................      2.64     2.60      3.50     3.09      4.35     3.97      5.79     5.22
8...................................      2.76     2.69      3.66     3.22      4.59     4.19      6.21     5.60
9...................................      2.85     2.76      3.81     3.35      4.84     4.42      6.60     5.95
10..................................      2.95     2.84      3.94     3.47      5.06     4.62      6.97     6.29
11..................................      3.04     2.91      4.08     3.59      5.27     4.82      7.31     6.59
12..................................      3.13     2.98      4.21     3.70      5.47     5.00      7.64     6.89
13..................................      3.21     3.05      4.32     3.79      5.66     5.17      7.94     7.16
14..................................      3.28     3.11      4.45     3.91      5.84     5.34      8.23     7.42
15..................................      3.35     3.17      4.55     4.00      6.02     5.51      8.50     7.67
16..................................      3.43     3.23      4.66     4.09      6.18     5.65      8.77     7.91
17..................................      3.50     3.29      4.77     4.18      6.34     5.80      9.01     8.13
18..................................      3.56     3.34      4.86     4.26      6.49     5.94      9.26     8.35
19..................................      3.62     3.41      4.95     4.34      6.63     6.07      9.48     8.55
20..................................      3.68     3.45      5.05     4.42      6.76     6.19      9.69     8.74
21..................................      3.74     3.50      5.14     4.50      6.89     6.31      9.91     8.94
22..................................      3.80     3.56      5.22     4.57      7.02     6.43     10.11     9.12
23..................................      3.85     3.61      5.30     4.65      7.15     6.55     10.30     9.30
24..................................      3.90     3.64      5.39     4.72      7.26     6.65     10.48     9.46
25..................................      3.95     3.69      5.47     4.78      7.38     6.77     10.66     9.62
26..................................      4.00     3.74      5.54     4.85      7.49     6.87     10.83     9.78
27..................................      4.05     3.79      5.61     4.91      7.59     6.96     10.99     9.92
28..................................      4.10     3.83      5.69     4.98      7.70     7.06     11.15    10.07
29..................................      4.14     3.87      5.76     5.05      7.80     7.16     11.31    10.21
30..................................      4.18     3.91      5.82     5.10      7.89     7.24     11.46    10.35
31..................................      4.22     3.96      5.89     5.15      7.99     7.33     11.60    10.48
32..................................      4.26     4.00      5.95     5.22      8.08     7.42     11.74    10.61
33..................................      4.30     4.04      6.02     5.27      8.17     7.50     11.88    10.73
34..................................      4.34     4.08      6.08     5.32      8.25     7.58     12.00    10.84
35..................................      4.39     4.11      6.14     5.38      8.34     7.66     12.13    10.96
36..................................      4.42     4.15      6.20     5.42      8.43     7.75     12.26    11.08
37..................................      4.46     4.19      6.26     5.47      8.50     7.81     12.38    11.19
38..................................      4.50     4.23      6.32     5.53      8.59     7.90     12.49    11.29
39..................................      4.53     4.27      6.38     5.57      8.66     7.96     12.60    11.39
40..................................      4.56     4.30      6.43     5.62      8.73     8.03     12.72    11.50
41..................................      4.60     4.35      6.48     5.68      8.80     8.09     12.82    11.59
42..................................      4.63     4.38      6.53     5.72      8.87     8.16     12.92    11.68
43..................................      4.66     4.40      6.58     5.76      8.95     8.23     13.03    11.79
44..................................      4.70     4.44      6.64     5.80      9.01     8.29     13.12    11.87
45..................................      4.74     4.47      6.69     5.85      9.08     8.36     13.22    11.96
46..................................      4.77     4.51      6.74     5.90      9.14     8.41     13.31    12.04
47..................................      4.80     4.55      6.79     5.94      9.20     8.47     13.40    12.13
48..................................      4.83     4.58      6.83     5.98      9.27     8.53     13.40    12.22
49..................................      4.86     4.61      6.88     6.02      9.33     8.59     13.58    12.29
50..................................      4.89     4.64      6.92     6.06      9.38     8.64     13.67    12.38
51..................................      4.91     4.68      6.98     6.10      9.45     8.70     13.75    12.45
52..................................      4.94     4.71      7.02     6.15      9.50     8.75     13.83    12.52
53..................................      4.97     4.73      7.07     6.19      9.55     8.80     13.91    12.60
54..................................      5.01     4.76      7.12     6.22      9.61     8.86     13.99    12.67
55..................................      5.04     4.79      7.16     6.25      9.67     8.91     14.06    12.74
56..................................      5.06     4.83      7.20     6.30      9.72     8.96     14.13    12.80
57..................................      5.09     4.86      7.24     6.34      9.77     9.01     14.21    12.88
58..................................      5.12     4.89      7.29     6.37      9.82     9.06     14.28    12.94
59..................................      5.14     4.92      7.33     6.41      9.87     9.10     14.35    13.01
60..................................      5.17     4.95      7.37     6.45      9.93     9.16     14.42    13.07
61..................................      5.20     4.99      7.41     6.48      9.97     9.20     14.49    13.14
62..................................      5.22     5.02      7.45     6.51     10.02     9.25     14.55    13.19
63..................................      5.25     5.04      7.49     6.55     10.07     9.29     14.61    13.25
64..................................      5.27     5.07      7.53     6.58     10.12     9.34     14.68    13.31
65..................................      5.30     5.10      7.56     6.62     10.16     9.38     14.74    13.37
66..................................      5.32     5.14      7.61     6.66     10.20     9.42     14.81    13.43
67..................................      5.36     5.17      7.65     6.69     10.25     9.47     14.85    13.48
68..................................      5.38     5.19      7.68     6.72     10.30     9.51     14.88    13.54
69..................................      5.41     5.21      7.72     6.74     10.34     9.55     14.91    13.59
70..................................      5.43     5.24      7.75     6.79     10.39     9.60     14.94    13.64
----------------------------------------------------------------------------------------------------------------
1. For Barcoded Discount, deduct $0.04 per-piece.                                                               

[[Page 9466]]

                                                                                                                
2. See 322.16 for oversize parcel post.                                                                         
3. Add $0.50 per-piece for hazardous medical materials and $1.00 per-piece for other mailable hazardous         
  materials.                                                                                                    
4. A fee of $85.00 must be paid each year for DBMC, DSCF, and DDU.                                              


 Standard Mail Rate Schedule 322.1D Parcel Post Subclass Destination SCF
                                  Rates                                 
                                [Dollars]                               
------------------------------------------------------------------------
                                                                 DSCF   
                       Weight (pounds)                       -----------
                                                               Proposed 
------------------------------------------------------------------------
2...........................................................       $1.53
3...........................................................        1.61
4...........................................................        1.69
5...........................................................        1.77
6...........................................................        1.84
7...........................................................        1.90
8...........................................................        1.97
9...........................................................        2.02
10..........................................................        2.08
11..........................................................        2.13
12..........................................................        2.19
13..........................................................        2.24
14..........................................................        2.28
15..........................................................        2.32
16..........................................................        2.38
17..........................................................        2.42
18..........................................................        2.46
19..........................................................        2.50
20..........................................................        2.54
21..........................................................        2.58
22..........................................................        2.62
23..........................................................        2.66
24..........................................................        2.69
25..........................................................        2.73
26..........................................................        2.76
27..........................................................        2.80
28..........................................................        2.84
29..........................................................        2.87
30..........................................................        2.90
31..........................................................        2.92
32..........................................................        2.96
33..........................................................        2.99
34..........................................................        3.02
35..........................................................        3.06
36..........................................................        3.08
37..........................................................        3.11
38..........................................................        3.15
39..........................................................        3.17
40..........................................................        3.19
41..........................................................        3.23
42..........................................................        3.25
43..........................................................        3.28
44..........................................................        3.31
45..........................................................        3.35
46..........................................................        3.37
47..........................................................        3.40
48..........................................................        3.42
49..........................................................        3.45
50..........................................................        3.47
51..........................................................        3.49
52..........................................................        3.52
53..........................................................        3.54
54..........................................................        3.58
55..........................................................        3.61
56..........................................................        3.63
57..........................................................        3.65
58..........................................................        3.68
59..........................................................        3.70
60..........................................................        3.73
61..........................................................        3.75
62..........................................................        3.77
63..........................................................        3.80
64..........................................................        3.82
65..........................................................        3.85
66..........................................................        3.87
67..........................................................        3.91
68..........................................................        3.92
69..........................................................        3.95
70..........................................................        3.97
------------------------------------------------------------------------
SCHEDULE 322.1D NOTES:                                                  
1. See 322.16 for oversize parcel post.                                 
2. Add $0.50 per-piece for hazardous medical materials and $1.00 per-   
  piece for other mailable hazardous materials.                         
3. A fee of $85.00 must be paid each year for DBMC, DSCF, and DDU.      


   Standard Mail Rate Schedule 322.1E Parcel Post Subclass Destination  
                           Delivery Unit Rates                          
                                [Dollars]                               
------------------------------------------------------------------------
                                                                  DDU   
                       Weight (pounds)                       -----------
                                                               Proposed 
------------------------------------------------------------------------
2...........................................................       $1.29
3...........................................................        1.34
4...........................................................        1.38
5...........................................................        1.43
6...........................................................        1.48
7...........................................................        1.51
8...........................................................        1.56
9...........................................................        1.59
10..........................................................        1.63
11..........................................................        1.67
12..........................................................        1.71
13..........................................................        1.74
14..........................................................        1.77
15..........................................................        1.80
16..........................................................        1.84
17..........................................................        1.84
18..........................................................        1.90
19..........................................................        1.93
20..........................................................        1.96
21..........................................................        1.99
22..........................................................        2.02
23..........................................................        2.05
24..........................................................        2.08
25..........................................................        2.10
26..........................................................        2.13
27..........................................................        2.16
28..........................................................        2.20
29..........................................................        2.22
30..........................................................        2.24
31..........................................................        2.27
32..........................................................        2.29
33..........................................................        2.32
34..........................................................        2.34
35..........................................................        2.38
36..........................................................        2.40
37..........................................................        2.43
38..........................................................        2.46
39..........................................................        2.48
40..........................................................        2.50
41..........................................................        2.53
42..........................................................        2.55
43..........................................................        2.57
44..........................................................        2.61
45..........................................................        2.64
46..........................................................        2.66
47..........................................................        2.68
48..........................................................        2.71
49..........................................................        2.73
50..........................................................        2.76
51..........................................................        2.77
52..........................................................        2.80
53..........................................................        2.82
54..........................................................        2.86
55..........................................................        2.88
56..........................................................        2.90
57..........................................................        2.93
58..........................................................        2.95
59..........................................................        2.97
60..........................................................        3.00
61..........................................................        3.02
62..........................................................        3.04
63..........................................................        3.07
64..........................................................        3.09
65..........................................................        3.11
66..........................................................        3.13
67..........................................................        3.17
68..........................................................        3.19
69..........................................................        3.22
70..........................................................        3.23
------------------------------------------------------------------------
SCHEDULE 322.1E NOTES:                                                  
1. See 322.16 for oversize parcel post.                                 
2. Add $0.50 per-piece for hazardous medical materials and $1.00 per-   
  piece for other mailable hazardous materials.                         
3. A fee of $85.00 must be paid each year for DBMC, DSCF, and DDU.      

    Amend Rate Schedule 322.3A as follows:

[[Page 9467]]



             Standard Mail Rate Schedule 322.3A Bound Printed Matter Subclass Single Piece Rates[*]             
                                                  [In dollars]                                                  
----------------------------------------------------------------------------------------------------------------
                                            Zone 1 &                                                            
    Weight not over (pounds)        Local       2      Zone 3    Zone 4    Zone 5    Zone 6    Zone 7    Zone 8 
----------------------------------------------------------------------------------------------------------------
1.5.............................     $1.11     $1.49     $1.52     $1.58     $1.66     $1.74     $1.84     $1.93
2.0.............................      1.12      1.52      1.56      1.63      1.74      1.85      1.99      2.10
2.5.............................      1.14      1.55      1.60      1.69      1.82      1.96      2.13      2.28
3.0.............................      1.15      1.57      1.64      1.74      1.90      2.07      2.27      2.45
3.5.............................      1.17      1.60      1.67      1.80      1.98      2.18      2.42      2.62
4.0.............................      1.18      1.63      1.71      1.85      2.07      2.29      2.56      2.79
4.5.............................      1.20      1.65      1.75      1.91      2.15      2.40      2.71      2.97
5.0.............................      1.22      1.68      1.79      1.96      2.23      2.51      2.85      3.14
6.0.............................      1.25      1.73      1.86      2.07      2.39      2.73      3.14      3.49
7.0.............................      1.28      1.79      1.94      2.18      2.56      2.95      3.43      3.83
8.0.............................      1.31      1.84      2.01      2.29      2.72      3.17      3.71      4.18
9.0.............................      1.34      1.90      2.09      2.40      2.89      3.39      4.00      4.52
10.0............................      1.37      1.95      2.16      2.51      3.05      3.61      4.29      4.87
11.0............................      1.40      2.00      2.24      2.62      3.21      3.83      4.58      5.22
12.0............................      1.43      2.06      2.31      2.73      3.38      4.05      4.87      5.56
13.0............................      1.46      2.11      2.39      2.84      3.54      4.27      5.15      5.91
14.0............................      1.49      2.17      2.46      2.95      3.71      4.49      5.44      6.25
15.0............................      1.53      2.22      2.54      3.06      3.87      4.71      5.73     6.60 
----------------------------------------------------------------------------------------------------------------
SCHEDULE 322.3A NOTES                                                                                           
[*]1. Includes both catalogs and similar bound printed matter.                                                  
2. For Barcoded Discount, deduct $0.04 per-piece.                                                               


  Standard Mail Rate Schedule 322.3B Bound Printed Matter Subclass Bulk 
                   and Carrier Route Presort Rates\1\                   
                                [Dollars]                               
------------------------------------------------------------------------
       Zone          Per-piece \3\      Carrier route       Per-pound   
---------------------------------------------\2\------------------------
                                                                        
------------------------------------------------------------------------
*        *        *        *        *                                   
SCHEDULE 322.3B  NOTES                                                  
*        *        *        *        *                                   
\3\ For Barcoded Discount, deduct $0.04 per-piece                       


   Standard Mail Rate Schedules 323.1 & 323.2 Special and Library Rate  
                               Subclasses                               
------------------------------------------------------------------------
                                                                  Rates 
                    Schedule 323.1: Special                      (cents)
------------------------------------------------------------------------
First Pound Not presorted \4\                                           
    LEVEL A Presort (5-digits)\1\ \2\                                   
    LEVEL B Presort (BMC)\1\ \3\ \4\                                    
Each additional pound through 7 pounds                                  
Each additional pound over 7 pounds                                     
------------------------------------------------------------------------


------------------------------------------------------------------------
                                                                  Full  
                    Schedule 323.2: Library                       rates 
                                                                 (cents)
------------------------------------------------------------------------
First pound                                                             
Each additional pound through 7 pounds                                  
Each additional pound over 7 pounds                                     
------------------------------------------------------------------------

SCHEDULE 323.1  NOTES:

*        *        *        *        *
    \4\ For Barcoded Discount, deduct $0.04 per-piece.

SCHEDULE 323.2  NOTES:

    1. Add $0.50 per-piece for hazardous medical materials and $1.00 
per-piece for other mailable hazardous materials.
    2. For Barcoded Discount, deduct $0.04 per-piece.
* * * * *

SPECIAL SERVICES

* * * * *

SCHEDULE SS-7

Delivery Confirmation

------------------------------------------------------------------------
                                                                Fee (in 
                                                               addition 
                          Per piece                               to    
                                                               postage) 
------------------------------------------------------------------------
Manual......................................................       $0.50
Electronic..................................................       $0.25
------------------------------------------------------------------------

* * * * *

SCHEDULE SS-9

Insured Mail

------------------------------------------------------------------------
                                                                Fee \1\ 
                                                                  (in   
                          Liability                             addition
                                                                   to   
                                                                postage)
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
                                                                        
------------------------------------------------------------------------
\1\ For Bulk Insurance, deduct $0.40 per piece.                         

* * * * *

SCHEDULE SS-21

Bulk Parcel Return Service

------------------------------------------------------------------------
                                                                   Fee  
------------------------------------------------------------------------
Per Returned Piece............................................     $1.75
------------------------------------------------------------------------

SCHEDULE 1000 FEES

* * * * *

------------------------------------------------------------------------
                                                                   Fee  
------------------------------------------------------------------------
Parcel Post: Destination BMC, Destination SCF, and Destination          
 Delivery Unit................................................     85.00
                                                                        
                  *        *        *        *        *                 
Authorization to Use Bulk Parcel Return Service...............     85.00
------------------------------------------------------------------------

SPECIAL RULES OF PRACTICE

1. Evidence
    A. Case-in-chief. A participant's case-in-chief shall be in writing 
and shall include the participant's direct case and rebuttal, if any, 
to the United States Postal Service's case-in-chief. It may be 
accompanied by a trial brief or legal memoranda. There will be a stage 
providing an opportunity to rebut presentations of other participants 
and for the Postal Service to present surrebuttal evidence.
    B. Exhibits. Exhibits should be self-explanatory. They should 
contain appropriate footnotes or narrative explaining the source of 
each item of information used and the methods employed in statistical 
compilations. The principal title of each exhibit should state what it 
contains or represents. The title may also contain a

[[Page 9468]]

statement of the purpose for which the exhibit is offered; however, 
this statement will not be considered part of the evidentiary record. 
Where one part of a multi-part exhibit is based on another part or on 
another exhibit, appropriate cross-references should be made. Relevant 
exposition should be included in the exhibits or provided in 
accompanying testimony.
    C. Motions to Strike. Motions to strike are requests for 
extraordinary relief and are not substitutes for briefs or rebuttal 
evidence. All motions to strike testimony or exhibit materials are to 
be submitted in writing at least 14 days before the scheduled 
appearance of the witness. Responses to motions to strike are due 
within seven days.
    D. Designation of Evidence from other Commission Dockets. 
Participants may request that evidence received in other Commission 
proceedings be entered into the record of this proceeding. These 
requests should be made by motion, should explain the purpose of the 
designation, and should identify material by page and line or paragraph 
number. Absent extraordinary justification, these requests must be made 
at least 28 days before the date for filing the participant's direct 
case. If requests for designations and counter-designations are 
granted, the moving participant must submit two copies of the approved 
material to the Secretary of the Commission for inclusion in the 
record.
    Oppositions to motions for designation and/or requests for counter-
designations shall be filed within 12 days.
2. Discovery
    A. General. Sections 25, 26 and 27 of the rules of practice apply 
during the discovery stage of this proceeding except when specifically 
overtaken by these special rules. Questions from each participant 
should be numbered sequentially, by witness.
    The discovery procedures set forth in the rules are not exclusive. 
Parties are encouraged to engage in informal discovery whenever 
possible to clarify exhibits and testimony. The results of these 
efforts may be introduced into the record by stipulation, by 
supplementary testimony or exhibit, by presenting selected written 
interrogatories and answers for adoption by a witness at the hearing, 
or by other appropriate means.
    In the interest of reducing motion practice, parties also are 
encouraged to use informal means to clarify questions and to identify 
portions of discovery requests considered overbroad or burdensome.
    B. Objections and Motions to Compel Responses to Discovery. Upon 
motion of any participant in the proceeding, the Commission or the 
presiding officer may compel an answer to an interrogatory or request 
for admissions if the objection is overruled. Motions to compel should 
be filed within 12 days of an objection to the discovery request.
    Parties who have objected to interrogatories or requests for 
production of documents or items which are the subject of a motion to 
compel shall have seven days to answer. Answers will be considered 
supplements to the arguments presented in the initial objection.
    C. Answers to Interrogatories. Answers to discovery are to be filed 
within 12 days of the service of the discovery request. Answers to 
discovery requests shall be prepared so that they can be incorporated 
as written cross-examination. Each answer shall begin on a separate 
page, identify the individual responding, the participant who asked the 
question, and the number and text of the question.
    Participants are expected to serve supplemental answers to update 
or to correct responses whenever necessary, up until the date that 
answers are accepted into evidence as written cross-examination. 
Participants filing supplemental answers shall indicate whether the 
answer merely supplements the previous answer to make it current or 
whether it is a complete replacement for the previous answer.
    Participants may submit responses with a declaration of accuracy 
from the respondent in lieu of a sworn affidavit.
    D. Follow-up Interrogatories. Follow-up interrogatories to clarify 
or elaborate on the answer to an earlier discovery request may be filed 
after the initial discovery period ends. They must be served within 
seven days of receipt of the answer to the previous interrogatory 
unless extraordinary circumstances are shown.
    E. Discovery to Obtain Information Available Only from the Postal 
Service. Sections 25 through 27 of the rules of practice allow 
discovery reasonably calculated to lead to admissible evidence during a 
noticed proceeding with no time limitations. Generally, through actions 
by the presiding officer, discovery against a participant is scheduled 
to end prior to the receipt into evidence of that participant's direct 
case. An exception to this procedure shall operate when a participant 
needs to obtain information (such as operating procedures or data) 
available only from the Postal Service. Discovery requests of this 
nature are permissible up to 20 days prior to the filing date for final 
rebuttal testimony.
    3. Service
    A. Receipt of Documents. The Service List shall contain the name 
and address of up to two individuals entitled to receive copies of 
documents for each participant. If possible that entry will also 
include a telephone number and facsimile number.
    B. Service of Documents. Documents shall be filed with the 
Commission and served upon parties in accordance with sections 9 
through 12 of the Commission's rules of practice. As provided in the 
Secretary's Notice to Intervenors, issued February 4, 1997, 
participants capable of submitting documents stored on computer 
diskettes may use an alternative procedure for filing documents with 
the Commission. Provided that the stored document is a file generated 
in either Word Perfect 5.1 or any version of Microsoft Word, and is 
formatted in Arial 12 font, in lieu of the requirements of section 10 
of the rules, a participant may submit a diskette containing the text 
of each filing simultaneously with the filing of 1 (one) printed 
original and 3 (three) hard copies.
    C. Exceptions to general service requirements for certain 
documents. Designations of written cross-examination, notices of intent 
to conduct oral cross-examination, and notices of intent to participate 
in oral argument need to be served only on the Commission, the OCA, the 
Postal Service, and the complementary party (as applicable), as well as 
on participants filing a special request for service.
    Discovery requests, objections and answers thereto need to be 
served on the Commission, the OCA, on the complementary party, and on 
any other participant so requesting, as provided in sections 25-27 of 
the rules of practice. Special requests relating to discovery must be 
served individually upon the party conducting discovery and state the 
witness who is the subject of the special request.
    D. Document titles. Parties should include titles that effectively 
describe the basic content of any filed documents. Where applicable, 
titles should identify the issue addressed and the relief requested. 
Transmittal documents should identify the answers or other materials 
being provided.
4. Cross-examination
    A. Written cross-examination. Written cross-examination will be 
utilized as a substitute for oral cross-examination whenever possible, 
particularly to introduce factual or statistical evidence.

[[Page 9469]]

    Designations of written cross-examination should be served no later 
than three working days before the scheduled appearance of a witness. 
Designations shall identify every item to be offered as evidence, 
listing the participant who initially posed the discovery request, the 
witness and/or party to whom the question was addressed (if different 
from the witness answering), the number of the request and, if more 
than one answer is provided, the dates of all answers to be included in 
the record. (For example, ``OCA-T1-17 to USPS witness Jones, answered 
by USPS witness Smith (March 1, 1997) as updated (March 21, 1997).'' 
When a participant designates written cross-examination, two copies of 
the documents to be included shall simultaneously be submitted to the 
Secretary of the Commission.
    The Secretary of the Commission shall prepare for the record a 
packet containing all materials designated for written cross-
examination in a format that facilitates review by the witness and 
counsel. The witness will verify the answers and materials in the 
packet, and they will be entered into the transcript by the presiding 
officer. Counsel for a witness may object to written cross-examination 
at that time, and any designated answers or materials ruled 
objectionable will be stricken from the record.
    B. Oral cross-examination. Oral cross-examination will be permitted 
for clarifying written cross-examination and for testing assumptions, 
conclusions or other opinion evidence. Requests for permission to 
conduct oral cross-examination should be served three or more working 
days before the announced appearance of a witness and should include 
(1) specific references to the subject matter to be examined and (2) 
page references to the relevant direct testimony and exhibits.
    Participants intending to use complex numerical hypotheticals or to 
question using intricate or extensive cross-references, shall provide 
adequately documented cross-examination exhibits for the record. Copies 
of these exhibits should be provided to counsel for the witness at 
least two calendar days (including one working day) before the 
witness's scheduled appearance.
5. General
    Argument will not be received in evidence. It is the province of 
the lawyer, not the witness. It should be presented in brief or 
memoranda. Legal memoranda on matters at issue will be welcome at any 
stage of the proceeding.
    New affirmative matter (not in reply to another party's direct 
case) should not be included in rebuttal testimony or exhibits.
    Cross-examination will be limited to testimony adverse to the 
participant conducting the cross-examination.
    Library references may be submitted when documentation or materials 
are too voluminous reasonably to be distributed. Each party should 
sequentially number items submitted as library references and provide 
each item with an informative title. Parties are to file and serve a 
separate Notice of Filing of Library Reference(s). Library material is 
not evidence unless and until it is designated and sponsored by a 
witness.

NOTICE TO INTERVENORS

    Beginning with MC96-2, the Postal Rate Commission embarked on an 
effort to experiment with the electronic filing of case-related 
documents. A substantial number of intervenors participated in the 
experiment with varying results. Some had transmission problems, some 
had computer hardware problems, and some had compatibility and corrupt 
file problems. While the Commission was able to solve or resolve most 
of these problems, some of them still remain. In addition, the recent 
overload on the Internet has made e-mail transmissions unreliable. 
Thus, the Commission has decided that as of today, Tuesday, February 4, 
1997, it will suspend the filing of documents by e-mail.
    The Commission, however, hopes to continue electronic communication 
and is studying new technologies in the hope that electronic 
communication between the Commission and intervenors will become a 
workable reality in the near future. Pursuant to these efforts, the 
Commission is adopting as a standard type font Arial 12, which is the 
most compatible with the Commission's current and future electronic 
needs.
    Therefore, with respect to filings in docketed cases, parties now 
are advised to proceed as follows:
    1. Consistent with past practices, parties choosing hard copy 
filing should send 1 (one) original and 24 (twenty-four) hard copies of 
each filing to the Commission's docket room.
    2. For those with the capacity to use diskettes, diskettes will 
continue to be accepted at the Commission so long as the copy is typed 
in Arial 12 and copied in either Word Perfect 5.1 or any version of 
Word. If sending a diskette, the party need file only 1 (one) original 
and 3 (three) hard copies with the Commission. In addition, all 
material sent by diskette in the required format will be placed on the 
Commission's Home Page (www.prc.gov).
    3. All documents filed by the Commission and the Office of Consumer 
Advocate will be served in hard copy and be placed on the Commission's 
Home Page. The Commission's Daily Listing of Documents Received will 
also be placed on the Home Page. Documents of excessive length will be 
zipped and downloading instructions will be included with such files.
    4. For those having questions about electronic operations, the 
Commission's computer administrator, Brenda Lamka, can be reached at 
202-789-6873.
Margaret P. Crenshaw,
Secretary.
[FR Doc. 97-4986 Filed 2-28-97; 8:45 am]
BILLING CODE 7710-FW-P