[Federal Register Volume 62, Number 91 (Monday, May 12, 1997)]
[Rules and Regulations]
[Pages 26086-26098]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12209]



[[Page 26085]]

_______________________________________________________________________

Part III





Postal Service





_______________________________________________________________________



39 CFR Part 111



Special Services Reform; Implementation Standards; Final Rule; Changes 
in Domestic Mail Classifications and Fees; Notice

  Federal Register / Vol. 62, No. 91 / Monday, May 12, 1997 / Rules and 
Regulations  

[[Page 26086]]



POSTAL SERVICE

39 CFR Part 111


Special Services Reform; Implementation Standards

AGENCY: Postal Service.

ACTION: Final rule.

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

SUMMARY: This final rule presents the full text of the Domestic Mail 
Manual (DMM) standards adopted by the Postal Service to implement the 
Decision of the Governors of the United States Postal Service on the 
Recommended Decision of the Postal Rate Commission on Special Services 
Fees and Classifications, Docket No. MC96-3. This final rule affects 
only the fees for, and certain attributes of, the following special 
services and their users: post office box and caller service, certified 
mail, insurance (insured mail and Express Mail), parcel airlift, postal 
cards, registered mail, return receipt, return receipt for merchandise, 
and special delivery. As appropriate, clarifications are included.

DATES: This final rule is effective at 12:01 a.m., Sunday, June 8, 
1997. Comments allowed herein must be received on or before May 27, 
1997.

ADDRESSES: Mail or deliver written comments to the Manager, Mail 
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW, 
Room 6800, Washington DC 20260-2405. Copies of all written comments 
will be available at the above address for inspection and photocopying 
between 9 a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Neil Berger, (202) 268-2859, or John 
Nagla, (202) 268-4686.

SUPPLEMENTARY INFORMATION: On June 7, 1996, pursuant to its authority 
under 39 U.S.C. 3621, et seq., the Postal Service filed with the Postal 
Rate Commission (PRC) a request for a recommended decision on several 
special service reform proposals. The PRC designated the filing as 
Docket No. MC96-3. The PRC published a notice of the filing, with a 
description of the Postal Service's proposals, on June 21, 1996, in the 
Federal Register (61 FR 31968-31979).
    Pursuant to 39 U.S.C. 3624, on April 2, 1997, the PRC issued its 
Recommended Decision on the Postal Service's Request to the Governors 
of the Postal Service. The PRC's Recommended Decision made revisions to 
some of the restructuring of the post office box fees requested by the 
Postal Service. In other areas, the PRC's Recommended Decision 
generally followed the requests made by the Postal Service to increase 
the fee for certified mail, merge the two options for return receipt 
service, merge the two options for return receipt for merchandise, 
increase the maximum available indemnity for insured mail to $5,000, 
add optional insurance for Express Mail and refine the current 
available indemnity structure, simplify the fee schedule for registered 
mail, and eliminate special delivery. Although the PRC did not 
recommend a fee for postal cards (renamed stamped cards), it did 
suggest that the Postal Service remove costs unique to stamped cards 
from total postal and postcard subclass costs to support any proposed 
fee in addition to the face value of the cards.
    Based on extensive analysis of the PRC's Recommended Decision and 
deliberation as to its consequences to the Postal Service and its 
customers, and pursuant to 39 U.S.C. 3625, the Governors acted on the 
PRC's recommendations on May 5, 1997. Decision of the Governors of the 
United States Postal Service on the Recommended Decision of the Postal 
Rate Commission on Special Services Fees and Classifications, Docket 
No. MC96-3.
    The Governors determined to approve the PRC's recommendations, and 
the Board of Governors set an implementation date of June 8, 1997, for 
those rate and classification changes to take effect. A notice 
announcing the Governors' Decision and the issuance of final Domestic 
Mail Classification Schedule and Rate Schedule changes is published 
elsewhere in this issue of the Federal Register.
    This final rule contains the DMM standards adopted by the Postal 
Service to implement the Governors' decision. As appropriate, 
clarifications are included.
    In its testimony before the PRC, the Postal Service presented 
extensive evidence concerning the prudence and necessity of certain 
pricing and classification reforms that it was seeking for post office 
box service and certain special services. Despite the differences 
between the Postal Service's Request and the PRC's Recommended 
Decision, which the Governors have approved, the value and efficacy of 
many elements of the Request remain undiminished.
    Using new data and analysis obtained since the last omnibus rate 
case, the Postal Service, with its filing, sought the reform of several 
special services to improve customer satisfaction and to account for 
cost and customer demand. The final rule does not encompass any changes 
to the rates or preparation standards for the classes and subclasses of 
mail or to the fees for other special services, none of which were 
included in the filing.

Post Office Box Service

    Under the final rule, the Postal Service establishes new fee groups 
and adjusts certain post office box fees to recover a greater 
proportion of cost. The changes to post office box service and fees 
pursue the policy of providing each customer with one form of free 
delivery. In post offices that do not provide carrier delivery, the 
final rule eliminates box fees for customers who are ineligible for any 
form of carrier delivery (from any post office). Fees are also 
eliminated for box customers who are ineligible for carrier service at 
delivery offices, except for those customers who reside in the 
immediate vicinity of the office. These latter customers will be 
afforded continued access to general delivery service.

Caller Service

    Under the final rule, the Postal Service extends caller service to 
Group D post offices (formerly categorized as Group II offices) for 
those customers, especially commercial mailers, who desire this 
service. The Group D caller service fee is set at the Group C (formerly 
categorized as Group IC) annual rate of $450. The fees for Groups A, B, 
and C do not change from the current fees.

Certified Mail

    Under the final rule, the Postal Service raises the certified mail 
fee from $1.10 to $1.35 to align its price more appropriately with the 
cost of providing this service.

Insured Mail and Insured Express Mail

    Under the final rule, the Postal Service increases from $600 to 
$5,000 the maximum indemnity available for insured mail. It should be 
noted that the handling of insured mail is not changed and the 
distinction is maintained between ``unnumbered insured mail'' (i.e., 
mail insured for $50 or less) and ``numbered insured mail'' (i.e., mail 
insured for more than $50). The Postal Service increases from $500 to 
$5,000 the maximum indemnity for merchandise sent by Express Mail. This 
increase to $5,000 will enable the Postal Service to compete more 
effectively in the parcel market for higher value items such as 
electronic and computer equipment.
    Several other reforms and clarifications are made to describe 
payable and nonpayble claims. In addition, for negotiable items, 
currency,

[[Page 26087]]

or bullion, mailed as Express Mail, the maximum indemnity is $15.
    Concurrently, the indemnity for Express Mail document 
reconstruction is reduced from $50,000 to $500 per piece and $500,000 
to $5,000 per occurrence in response to industry changes from exclusive 
reliance on paper documents to the growing use of electronically 
generated documents that can be reconstructed easily. Indemnity will be 
paid according to value for items valued at $15 or less.

Parcel Airlift

    Under the final rule, the Postal Service increases from $25 to $50 
the minimum insurance amount required on a parcel airlift (PAL) package 
if return receipt or restricted delivery service is requested.

Registered Mail

    Under the final rule, the Postal Service simplifies the registered 
mail fee schedule by eliminating the uninsured schedule for declared 
values of more than $100 for the reasons that most mailers of 
registered mail want insurance and the dual fee schedules differ by 
less than $1 in the lower ranges to no more than $2.70 in the topmost 
range of coverage. The elimination of two parallel fee schedules also 
conforms to the overall Postal Service goal of simplifying its services 
and products for consumers. The maximum insurance coverage for 
registered mail service remains at the current limit of $25,000.

Return Receipt Services

    Under the final rule, the two basic service offerings for return 
receipt service are merged and made into one service offering, 
available for a fee of $1.10 (the current fee for the service showing 
to whom, signature, and date delivered). For return receipt for 
merchandise, the two basic service offerings are also merged and made 
into one service, available for a fee of $1.20 (the current fee for 
showing to whom, signature, and date delivered). The enhanced return 
receipt service includes the address of delivery if different from the 
address on the mailpiece.
    Also a classification change for return receipt for merchandise 
limits the availability of service in the First-Class Mail 
classification structure to Priority Mail. In addition, a clarification 
specifies the subclasses of Standard Mail for which return receipt for 
merchandise service is currently available.

Special Delivery Service

    Under the final rule, the Postal Service eliminates domestic 
special delivery service because the demand for it has virtually 
disappeared. Consumers who request expedited delivery service most 
frequently use Priority Mail or Express Mail. A 2-pound Priority Mail 
package costs only $3, compared with $12.95 for the same Priority Mail 
package sent as special delivery ($3 postage plus $9.95 special 
delivery fee). A 2-pound Express Mail Post Office to Addressee package 
costs $15.00. Express Mail, unlike special delivery service and 
Priority Mail, includes a delivery guarantee and insurance at no 
additional charge.

Stamped Cards

    Under the final rule, the Postal Service renames postal cards as 
stamped cards. Unlike stamped envelopes, stamped cards will continue to 
be sold at no additional charge above their face value of postage. The 
designation stamped cards emphasizes the similar nature of this 
stationery item with stamped envelopes.

Scope of Changes

    To the extent that this final rule establishes standards that were 
not previously published for public comment, the Postal Service has 
determined to seek and consider comments from customers. This 
opportunity for public comment is restricted to matters concerning 
implementing policies that are not determined directly from the PRC's 
Recommended Decision and the Governors' Decision. The provisions for 
which comments are solicited are as follows:
    1. Standards for post office box service as provided in DMM D910, 
including eligibility for box service in offices that offer no form of 
carrier delivery.
    2. Standards for indemnity as provided in DMM S010, S500, and S913, 
including the revised rate schedules for insured mail service and for 
Express Mail.
    3. Standards for return receipt service and return receipt service 
for merchandise in DMM S915 and S917, including the merger of the 
options currently available.
    After considering the potential effect of these provisions, the 
Postal Service has determined to allow 15 days for public comment. 
Although a longer comment period is usually provided, the Postal 
Service concluded that a 15-day comment period was warranted in this 
case for two reasons. First, the list of provisions on which comment is 
sought is short and straightforward. Customers and mailers should have 
little difficulty evaluating the effect of these provisions on their 
personal or commercial mailing requirements. Second, the Postal Service 
wants to ensure that customers and mailers have sufficient time after 
the close of the comment period and publication of any possible 
revisions to this final rule to make the necessary changes to their 
operations before the June 8, 1997, implementation date. After review 
of the comments received, the Postal Service will modify the 
corresponding standards if such modification is determined to be 
appropriate.
    Although exempt by 39 U.S.C. 410(a) from the notice and comment 
requirements of the Administrative Procedure Act (5 U.S.C. 553 (b), 
(c)) regarding rulemaking, the Postal Service invites comment on the 
revisions of sections D910, S010, S500, S913, S915, and S917 of the 
Domestic Mail Manual, incorporated by reference in the Code of Federal 
Regulations. See 39 CFR part 111.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. In view of the foregoing, amend the following sections of 
Domestic Mail Manual Issue 51 as set forth below:

A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

    [In 1.2d, replace ``postal cards'' with ``stamped cards''; no other 
change to text.]
* * * * *

A900  Customer Support

A910  Mailing List Services

    [In 1.5, 3.2, and 5.2, replace ``postal card[s]'' with ``stamped 
card[s]''; no other change to text.]
* * * * *

C  CHARACTERISTICS AND CONTENT

C000  General Information

* * * * *

C020  Restricted or Nonmailable Articles and Substances

* * * * *

[[Page 26088]]

C022  Perishables

    [In 3.1f, remove ``special delivery or''; in 3.7, remove ``special 
delivery or''; no other change to text.]
* * * * *

C030  Nonmailable Written, Printed, and Graphic Matter

C031  Written, Printed, and Graphic Matter Generally

    [In 3.2 and 5.6, replace ``postal card'' with ``stamped card or 
postcard''; no other change to text.]
* * * * *

C100  First-Class Mail

    [In 2.1, 2.3, and 2.9, replace ``postal card[s]'' with ``stamped 
card[s]''; no other change to text.]
* * * * *

C600  Standard Mail

    [In 2.2, remove ``special delivery or''; no other change to text.]
* * * * *

DEPOSIT, COLLECTION, AND DELIVERY

* * * * *

D900  Other Delivery Services

D910  Post Office Box Service

1.0  BASIC INFORMATION
    [Amend 1.0 by revising 1.1; by removing current 1.7; by 
redesignating current 1.6 as 1.7; and by adding new 1.6 to read as 
follows:]

1.1  Purpose

    Post office box service is a premium service offered for a fee to 
any customer requiring more than free carrier delivery or general 
delivery and for no fee to certain customers who are not eligible for 
carrier delivery. The service allows a customer to obtain mail during 
the hours the box lobby is open. Post office box service does not 
include alternate means of delivery established to replace, simplify, 
or extend carrier delivery service. A postmaster and a box customer may 
not make any agreement that contravenes the regulations on post office 
box service or its fees.
* * * * *

1.6  Box Availability

    When no box of the appropriate size is available, an application 
for box service may be handled, at the postmaster's discretion, in any 
one or more of the following ways: by referring the customer to another 
postal facility with available capacity; by placing the customer's name 
on a waiting list for box service; by providing general delivery 
service until an appropriate size box becomes available; by offering a 
smaller or larger box at its fee; or by offering caller service.
* * * * *
2.0  SERVICE
    [Amend 2.0 by revising 2.2 and 2.3 and adding new 2.4 to read as 
follows:]
* * * * *

2.2  Transferring Service

    Post office box service may be transferred, without payment of an 
additional fee, to any box of the same size and fee group at a 
different facility of the same post office. To transfer service, the 
box customer must submit a new application either to the facility where 
service is currently provided or to the facility where service is 
desired. A box customer may transfer service no more than once in any 
semiannual payment period and must submit a completed Form 3575 or Form 
3575-WWW at the time of transfer.

2.3  Minor

    Post office box service may be provided to a minor (a person under 
18 years of age) unless the minor's parent or guardian submits a 
written objection to the appropriate postmaster.

2.4  Proof of Physical Address

    An applicant for post office box service or a current box customer 
seeking renewal must identify his or her physical address (i.e., an 
individual's residence or a business's location) to the postmaster of 
the office where service is sought or provided. If the postmaster 
cannot confirm the physical address, the applicant or box customer must 
provide proof of the physical address (e.g., a utility bill, current 
lease, mortgage, deed of trust, a driver's license, or voter 
registration card). A business with multiple locations may, on 
providing appropriate evidence, use any one or more of such location(s) 
as its physical address.
3.0  CONDITIONS OF USE
    [Amend 3.0 by revising 3.2, 3.3, and 3.7 to read as follows:]
* * * * *

3.2  Updating

    When any information required to be provided by the box customer on 
Form 1093 changes, the customer must notify the post office of such 
changes.

3.3  Mail Only

    Only mail and official USPS notices may be placed into a post 
office box.
* * * * *

3.7  Forwarding

    A post office box may not be used when the primary purpose is, 
through change-of-address orders, to have the USPS forward or transfer 
mail to another address free of charge.
* * * * *
    [Revise 4.0 to read as follows:]
4.0  BASIS OF FEES AND PAYMENT

4.1  General

    Post office box fees are based on the size of box provided and the 
fee group of the administering facility as identified in 5.0.

4.2  Box Size

    Box sizes are standardized and the fees for boxes increase with box 
size. The following chart describes approximate box capacities and 
frontal dimensions.

------------------------------------------------------------------------
                                               Width and height  (linear
     Box  size       Capacity  (cubic inches)           inches)         
------------------------------------------------------------------------
1.................  Under 296................  3 by 5.5.                
2.................  296 through 499..........  5 by 5.5.                
3.................  500 through 999..........  11 by 5.5.               
4.................  1,000 through 1,999......  11 by 11.                
5.................  2,000 or more............  22.5 by 12.              
------------------------------------------------------------------------

4.3  Definitions of Facilities for Fee Groups

    All facilities administered by a single independent post office 
(including any classified or contract station or branch, community post 
office, or detached post office box unit) belong to the same fee group 
as that post office and use a single fee schedule, except as provided 
in 5.3. Additionally, the type of carrier delivery service available at 
any one facility administered by a post office determines the fee group 
applicable to all of that post office's facilities, as provided in 5.1. 
All box locations administered by a single mail processing facility 
belong to the same fee group as identified in 5.2 and use a single fee 
schedule, except as provided in 5.3.

4.4  Fee Changes

    A change in post office box service fees can arise from a general 
fee change, an administrative change in carrier service, a change in 
definitions in 4.3, or a change in facility groupings in 5.0. Any 
change in post office box service fees takes effect on the date of the 
action that caused the change unless an official announcement specifies 
another date. If a post office box service fee is increased, no 
customer must pay at the new rate until the end of the period already 
paid, and no retroactive adjustment is to be made for a payment 
received before the date of the change.

[[Page 26089]]

4.5  Payment

    All fees are for a semiannual (6-month) period, and must be paid in 
advance for no less than one but no more than two semiannual periods, 
except as provided under 4.7, 4.8, and 4.11. Fees may be paid using 
cash, credit or debit card, or check or money order payable to the 
postmaster. A mailed payment must be received by the postmaster on or 
before the due date.

4.6  Payment Period

    Except under 4.8, the beginning date for a box fee payment period 
is determined by the approval date of the application. The period 
begins on the first day of either the same month if the application is 
approved on or before the 15th of the month, or the next month if 
approved after the 15th of the month. After that, box fees for service 
renewal may be paid any time during the last 30 days of the service 
period, but no later than the last day of the service period.

4.7  U.S. Agencies

    Federal agencies whose payment period coincides with the federal 
fiscal year may pay their box fees during the first quarter rather than 
in advance.

4.8  Exception for Group D and E Offices

    Postmasters at Group D and Group E offices with fewer than 500 post 
office boxes may set April 1 and October 1 as the beginning of payment 
periods for box customers in their offices. Payment periods beginning 
other than April 1 or October 1 are brought into alignment with these 
respective dates by adjusting fees as follows:
    a. New service, one-sixth of the semiannual fee is charged for each 
remaining month between the beginning of the new payment period and the 
next April 1 or October 1.
    b. Existing service, one-sixth of the semiannual fee is charged for 
each remaining month between the end of all currently paid periods and 
the next April 1 or October 1.
    c. Next one or two semiannual payment periods, an adjustment may be 
accepted in addition to fees.

4.9  Change of Payment Period

    Except for customers at post offices subject to 4.8, a box customer 
of record may change the payment period by submitting a new application 
noting the month to be used as the start of the revised payment period. 
The date selected must be before the end of the current payment period. 
The unused fee for the period being discontinued may be refunded under 
6.0, and the fee for the new payment period must be fully paid in 
advance. A change of payment period date may not be used to circumvent 
a change in box fees.

4.10  Academic Institutions

    The USPS does not set or collect fees for boxes owned by an 
academic institution if the boxes are separate from designated USPS 
areas and serviced by employees or agents of the institution.

4.11  Adjusting Fees

    In postal facilities primarily serving academic institutions or 
their students, box fees may be adjusted to fit the semester schedules, 
using the matrix below. Charges are rounded up to the next multiple of 
$0.10. No refund is made for discontinued service when a box is 
obtained under this standard.

------------------------------------------------------------------------
              Service period                        Adjusted fee        
------------------------------------------------------------------------
95 days or less...........................  \1/2\ semiannual fee (or \1/
                                             4\ annual fee).            
96 to 140 days............................  \3/4\ semiannual fee (or \3/
                                             8\ annual fee).            
141 to 190 days...........................  Full semiannual fee (or \1/ 
                                             2\ annual fee).            
191 to 230 days...........................  1\1/4\ semiannual fee (or \5/
                                             8\ annual fee).            
231 to 270 days...........................  1\1/2\ semiannual fee (or \3/
                                             4\ annual fee).            
271 days to full year.....................  2 semiannual fees (or full  
                                             annual fee).               
------------------------------------------------------------------------

    [Add new 5.0 and redesignate current 5.0 through 7.0 as 6.0 through 
8.0, respectively.]
5.0  FEE GROUP ASSIGNMENTS

5.1  Post Offices

    For purposes of fee group assignment, and as defined in 4.3, a post 
office includes all subordinate facilities or units administered by 
that post office, such as classified stations, classified branches, and 
contractor-operated facilities. Additionally, the type of carrier 
delivery service available at any one facility administered by a post 
office determines the fee group applicable to all facilities of that 
post office as follows:
    a. Post Office With City Delivery. A post office that provides city 
carrier delivery at any of its administered facilities applies Group C 
fees, except as provided in 5.3. A customer whose physical residence or 
business location is within the geographic boundaries of any delivery 
area ZIP Code administered by that city delivery post office, who is 
ineligible for any form of carrier delivery service from that post 
office and who does not receive carrier delivery via an out-of-bounds 
delivery receptacle, may obtain one box of the smallest available size 
at the Group E fee (no fee).
    b. Post Office With Only Rural or Highway Contract Carrier 
Delivery. A post office that does not provide city carrier delivery but 
provides only rural carrier or highway contract carrier delivery at any 
of its administered facilities applies Group D fees, except as provided 
in 5.3, with two exceptions:
    (1) A customer whose physical residence or business location is 
within the geographic boundaries of any delivery area ZIP Code 
administered by that non-city delivery post office, who is ineligible 
for any form of carrier delivery service, who does not receive carrier 
delivery via an out-of-bounds delivery receptacle, and who resides 
outside the immediate vicinity of the post office as specified in 
Postal Operations Manual 653, may obtain one box of the smallest 
available size at the Group E fee (no fee).
    (2) A customer whose ineligibility for carrier service arises from 
residing in the immediate vicinity of the post office as specified in 
Postal Operations Manual 653 is afforded continued access to general 
delivery service.
    c. Post Office Without Any Carrier Delivery. A post office that 
does not provide any form of carrier delivery (i.e., a nondelivery post 
office) exists within the geographic delivery boundaries of other post 
offices. A nondelivery post office applies Group D fees or Group E fees 
(no fees), based on the box customer's physical residence or business 
location relative to the geographic boundaries of the post office 
containing the nondelivery office, as follows:
    (1) If the box customer's physical residence or business location 
is inside the geographic ZIP Code boundaries of the post office 
containing the nondelivery office, and the customer is eligible for 
carrier delivery service, a box at the nondelivery office is provided 
at the Group D fee. If the customer is not eligible for carrier 
delivery service and does not receive carrier delivery via an out-of-
bounds delivery receptacle, a box at either the nondelivery office or 
the containing delivery office is provided at the Group E fee (no fee).
    (2) If the box customer's physical residence or business location 
is outside the geographic ZIP Code boundaries of the post office 
containing the nondelivery office, a box is provided at the Group D 
fee.

5.2  Mail Processing Facilities

    Mail processing facilities with post office boxes apply Group C 
fees to post office boxes, except as provided in 5.3.

[[Page 26090]]

5.3  Facilities Assigned Location-Based Box Fees

    The facilities defined by the ZIP Codes in Exhibit 5.3 constitute 
exceptions to the fee groupings described in 5.1 and 5.2. Group A or B 
fees apply as identified.

        Exhibit 5.3.--Facilities Assigned Location-Based Box Fees       
------------------------------------------------------------------------
       Group                Location                  ZIP codes         
------------------------------------------------------------------------
A.................  New York, NY...........  10001-10299.               
B.................  Boston, MA.............  02113, 02115, 02117, 02128,
                                              02134, 02135, 02139,      
                                              02140, 02142, 02146, 02158-
                                              02162, 02164-02168, 02178,
                                              02179, 02181, 02205, 02214-
                                              02216, 02218, 02238.      
                    Staten Island, NY......  10301-10399.               
                    Long Island City, NY...  11101-11199.               
                    Brooklyn, NY...........  11201-11299.               
                    Queens (Flushing), NY..  11301-11399.               
                    Queens (Jamaica), NY...  11401-11499.               
                    Queens (Far Rockaway),   11601-11699.               
                     NY.                                                
                    Philadelphia, PA.......  19101-19104, 19105, 19107. 
                    Washington, DC.........  20004-20009, 20013, 20026, 
                                              20033, 20035, 20036,      
                                              20037, 20038, 20043,      
                                              20044, 20050, 20056       
                    Bethesda, MD...........  20813, 20824, 20825, 20827 
                    Arlington, VA..........  22202, 22209, 22210, 22216.
                    McLean, VA.............  22103.                     
                    Chicago, IL............  60606, 60610, 60611, 60654,
                                              60664, 60680, 60681,      
                                              60684, 60690.             
                    Los Angeles, CA........  90019, 90024, 90025, 90034,
                                              90035, 90048, 90049,      
                                              90064, 90067, 90069.      
                    Beverly Hills, CA......  90210-90212.               
                    Santa Monica, CA.......  90401-90405.               
                    San Francisco, CA......  94101, 94107, 94108, 94126,
                                              94133, 94147, 94159,      
                                              94164.                    
                    Honolulu, HI...........  96801-96815, 96830.        
------------------------------------------------------------------------

    [Revised redesignated 6.0 to read as follows:]
6.0  FEE REFUND

6.1  Calculation

    When post office box service is terminated or surrendered, the 
unused portion of the fee may be refunded as follows. For the current 
semiannual payment period, if service is discontinued any time within 
the first 3 months of the payment period, one-half the fee is refunded; 
if discontinued after the third month of the payment period, none of 
the fee is refunded. The entire fee is refunded for any semiannual 
payment period that begins after the termination or surrender date.

6.2  Discontinued Postal Facility

    When a postal facility is discontinued or relocated, a box customer 
at that facility may obtain a refund of unused box fees if box service 
at that location is discontinued and additional travel of \1/4\ mile or 
more (from the physical address on the customer's Form 1093) is 
required to obtain equivalent service. For this purpose, one-sixth of a 
semiannual fee is refunded for each month left in the payment period. 
The refund is computed from the first day of that month (if the 
effective date of the facility discontinuance is on or before the 15th 
of the month) or from the first day of the next month (if the effective 
date is after the 15th of the month).
7.0  KEYS
    [No change to redesignated 7.0.]
    [Revise redesignated 8.0 to read as follows:]
8.0  SERVICE REFUSAL OR TERMINATION

8.1  Refusal

    A postmaster may refuse to approve post office box service if: the 
applicant submits a falsified or incomplete application for box 
service; within the 2 years immediately before submitting the 
application, the applicant physically abused a box or violated a 
standard on the care or use of a box; or there is substantial reason to 
believe that the box is to be used for activities as described in 3.6 
or 3.7.

8.2  Termination

    A postmaster may terminate post office box service, including that 
of a customer paying a Group E fee, if the box customer or its 
representative falsifies the application for the box; physically abuses 
the box; refuses to update information on the box application; violates 
any standard on the care or use of the box; conducts himself or herself 
in a violent, threatening, or otherwise abusive manner on postal 
premises; or uses it for any unlawful activity as described in 3.6. The 
customer is notified of the postmaster's determination to refuse or 
terminate service and of the appeal procedures for that determination.

8.3  Customer Appeal

    The applicant or box customer may file a petition appealing the 
postmaster's determination to refuse or terminate service within 20 
calendar days after notice, as specified in the postmaster's 
determination and 39 CFR 958. The filing of a petition prevents the 
postmaster's determination from taking effect and transfers the case to 
the USPS Judicial Officer. The Administrative Law Judge's or the 
Judicial Officer's decision under 39 CFR 958 constitutes the final USPS 
decision.

8.4  Surrendered Box

    A post office box is deemed surrendered if the box customer submits 
a permanent change-of-address order, refuses or fails to pay the 
appropriate fees by the due date, or submits a written notice to 
discontinue service. A box is not considered surrendered if the box 
customer dies or disappears before the end of the period for which the 
box is issued, the box customer submits a temporary change-of-address 
order, or any person other than the box customer submits a change-of-
address order for mail going to the box.

D920  Caller Service

    [Revise 1.0 to read as follows:]
1.0  BASIC INFORMATION

1.1  Purpose

    Caller service is a premium service available for a fee to any 
customer

[[Page 26091]]

requiring more than free carrier service or the largest installed box 
size, or to any customer who is required to use caller service by 
standard. The service allows a customer to pick up mail at a post 
office call window or loading dock when the office is open. Caller 
service does not include general delivery service. A customer may 
obtain caller service for receiving the mail of a client, subject to 
D042. A postmaster and a caller may not make any agreement that 
contravenes the regulations on caller service or its fees.

1.2  Caller

    A caller is the person signing the application as an individual, or 
the organization represented by the individual signing the application.

1.3  Service Types

    Destination caller service is caller service provided at the postal 
facility to which the caller's mail is addressed. Origin caller service 
(accelerated reply mail) is described in 7.0.

1.4  Caller Service Number

    Except for origin caller service, the customer (including a 
customer using a post office box number) is assigned a caller service 
number before caller service may begin. A caller number is assigned for 
each separation used. Except under 1.5, mail addressed to a caller 
service customer must include ``Post Office Box'' or ``PO BOX'' 
followed by the assigned number in the mailing address immediately 
above the city, state, and ZIP Code. A caller of record may reserve 
caller numbers for future use. The postmaster determines the reserved 
numbers and may restrict this service.

1.5  Exemption

    A postmaster may exempt any customer continuously receiving firm 
holdout service since July 3, 1994, from the standard in 1.4 that 
correspondents must use the assigned post office box (caller service) 
number in the address.

1.6  Restriction

    The USPS may restrict caller service if such service adversely 
affects postal operations.

1.7  Required Use

    Subject to D910, when mail for a customer's post office box(es) 
exceeds the capacity of the box(es) on 12 of any 20 consecutive 
business days (excluding Saturdays, Sundays, and national holidays), or 
when the customer seeks multiple caller service separations, the 
postmaster can require the customer to use caller service, change to a 
larger box, or use one or more additional boxes (subject to 
availability) to which mail will be addressed. A customer required to 
use caller service because of the mail volume received may, once per 
semiannual payment period, make a written request to the postmaster for 
a new determination of whether current mail volume requires continued 
use of caller service.

1.8  U.S. Agencies and Schools

    Federal agencies and the various schools and departments within 
educational institutions are considered separate customers for 1.7.

1.9  Eligible Customers

    Caller service may be provided to the following:
    a. A new customer planning to receive an incoming volume of mail 
that cannot fit into the largest available post office box.
    b. A customer wanting a post office box when a box is unavailable, 
and the postmaster determines that such service does not adversely 
affect postal operations.
    c. A customer formerly receiving firm holdout service.
    [Revise 2.0 to read as follows:]
2.0  SERVICE

2.1  Application

    To apply for caller service, the applicant must complete all 
relevant spaces on Form 1093 and submit it to any postal facility that 
provides public window service. The facility need not be the one where 
destination caller service is desired. An incomplete or falsified 
application is sufficient reason to deny or discontinue service. An 
application is not considered approved until the USPS verifies the 
applicant's identity.

2.2  Transferring Service

    Caller service may be transferred, without payment of an additional 
fee, to a different facility of the same post office if that facility 
has caller service. To transfer service, the caller must submit a new 
application either to the facility where service is currently provided 
or to the facility where service is desired. A caller may transfer 
service no more than once in any semiannual payment period and must 
submit a completed Form 3575 or Form 3575-WWW at the time of transfer.

2.3  Minor

    Caller service may be provided to a minor (a person under 18 years 
of age) unless the minor's parent or guardian submits a written 
objection to the postmaster.
    [Revise 3.0 to read as follows:]
3.0  CONDITIONS OF USE

3.1  Mail Receipt

    An individual caller or organization may receive mail properly 
addressed to the caller number. Mail addressed only to a caller number 
is delivered to the caller so long as no improper or unlawful business 
is conducted. A caller who, as a regular practice, wants to call for 
mail at a postal facility more than once in any 24-hour period must 
obtain the postmaster's approval of the pickup schedule.

3.2  Updating

    When any information required to be provided by the caller on Form 
1093 changes, the caller must notify the post office of such changes.

3.3  Unlawful Activity

    Caller service may not be used for, or in connection with, a scheme 
or enterprise that violates any federal, state, or local law; breaches 
an agreement between the caller and a federal, state, or local agency 
for the caller to discontinue a specified activity; or violates or 
attempts to evade any order of a court or administrative body.

3.4  Forwarding

    A caller number may not be used when the primary purpose is, 
through change-of-address orders, to have the USPS forward or transfer 
mail to another address free of charge.
    [Revise 4.0 to read as follows:]
4.0  BASIS OF FEES AND PAYMENT

4.1  Basic Caller Fee

    The caller service fee groups are shown in Exhibit 4.1 and are 
charged per semiannual (6-month) period. The fee must be paid for each 
caller number or separation used, with two exceptions:
    a. If a caller uses many caller numbers, but receives only a bulk 
delivery of mail not separated to those numbers either because this 
mail is sorted to the customer's unique 5-digit ZIP Code or because 
sortation is made by caller name or other identification, the basic 
caller fee is charged only for each separation actually made. The 
reserved number fee is charged for each of the caller numbers to which 
mail received by the caller is addressed.
    b. Caller service is available in box fee Group D post offices on 
the same basis and fee as Group C offices. The one exception is when a 
box service applicant is provided a single caller service separation 
instead of a box because of a shortage of available boxes (see D910), 
in which case the fee

[[Page 26092]]

charged is the fee for the largest installed box rather than the fee 
for caller service.

                   Exhibit 4.1.--Caller Service Groups                  
------------------------------------------------------------------------
       Group                Location                  ZIP Codes         
------------------------------------------------------------------------
A.................  New York, NY...........  10001-10299.               
B.................  Boston, MA.............  02113, 02115, 02117, 02128,
                                              02134, 02135, 02139,      
                                              02140, 02142, 02146, 02158-
                                              02162, 02164-02168, 02178,
                                              02179, 02181, 02205, 02214-
                                              02216, 02218, 02238.      
                    Staten Island, NY......  10301-10399.               
                    Long Island City, NY...  11101-11199.               
                    Brooklyn, NY...........  11201-11299.               
                    Queens (Flushing), NY..  11301-11399.               
                    Queens (Jamaica), NY...  11401-11499.               
                    Queens (Far Rockaway),   11601-11699.               
                     NY.                                                
                    Philadelphia, PA.......  19101-19104, 19105, 19107. 
                    Washington, DC.........  20004-20009, 20013, 20026, 
                                              20033, 20035, 20036,      
                                              20037, 20038, 20043,      
                                              20044, 20050, 20056.      
                    Bethesda, MD...........  20813, 20824, 20825, 20827.
                    Arlington, VA..........  22202, 22209, 22210, 22216.
                    McLean, VA.............  22103.                     
                    Chicago, IL............  60606, 60610, 60611, 60654,
                                              60664, 60680, 60681,      
                                              60684, 60690.             
                    Los Angeles, CA........  90019, 90024, 90025, 90034,
                                              90035, 90048, 90049,      
                                              90064, 90067, 90069.      
                    Beverly Hills, CA......  90210-90212..              
                    Santa Monica, CA.......  90401-90405.               
                    San Francisco, CA......  94101, 94107, 94108, 94126,
                                              94133, 94147, 94159,      
                                              94164.                    
                    Honolulu, HI...........  96801-96815, 96830.        
C.................                                                      
(1) All post                                                            
 offices with city                                                      
 delivery and all                                                       
 nondelivery mail                                                       
 processing                                                             
 facilities not                                                         
 listed in Group A                                                      
 or B.                                                                  
D.................                                                      
(1) All post                                                            
 offices with no                                                        
 city delivery but                                                      
 with only rural                                                        
 or highway                                                             
 contract delivery                                                      
 and not listed in                                                      
 Group A or B.                                                          
------------------------------------------------------------------------

4.2  Reserved Number

    The required fee is charged per calendar year or any part of such a 
calendar year for each number reserved by a customer.

4.3  Fee Changes

    A change in caller service fees can arise from a general fee 
change, a change in customer eligibility under 4.1b, or a change in 
facility groupings in 4.1. Any change in caller service fees takes 
effect on the date of the action that caused the change unless an 
official announcement specifies another date. If a caller service fee 
is increased, no customer must pay at the new rate until the end of the 
period already paid, and no retroactive adjustment is to be made for a 
payment received before the date of the change.

4.4  Box Number

    If a caller uses a physical post office box to obtain a caller 
number, the applicable fees for both post office box service and caller 
service must be paid.

4.5  Payment

    Caller fees are charged for a semiannual (6-month) period and must 
be paid in advance for no less than one but no more than two semiannual 
periods. Fees may be paid using cash, credit or debit card, or check or 
money order payable to the postmaster. A mailed payment must be 
received by the postmaster on or before the due date.

4.6  Payment Period

    The beginning date for a caller fee payment period is determined by 
the approval date of the application. The period begins on the first 
day of either the same month if the application is approved on or 
before the 15th of the month, or the next month if approved after the 
15th of the month. After that, caller fees for renewal of service may 
be paid any time during the last 30 days of the service period, but no 
later than the last day of the service period.

4.7  Change of Payment Period

    A caller of record may change the payment period by submitting a 
new application noting the month to be used as the start of the revised 
payment period. The date selected must be before the end of the current 
payment period. The unused fee for the period being discontinued may be 
refunded under 5.0, and the fee for the new payment period must be 
fully paid in advance. A change of payment period date may not be used 
to circumvent a change in caller service fees.
    [Revise 5.0 to read as follows:]
5.0  FEE REFUND

5.1  Discontinued Number

    When a destination caller service number is discontinued or 
surrendered, the unused portion of the fee for that number may be 
refunded. The entire fee is refunded for any semiannual payment period 
after that in which the service is discontinued. For the current 
semiannual payment period, if service is discontinued any time within 
the first 3 months of the payment period, one-half the fee is refunded; 
if discontinued after the third month of the payment period, none of 
the fee is refunded.

5.2  Discontinued Postal Facility

    When a postal facility is discontinued or relocated, a caller 
service customer at that facility may obtain a refund of unused caller 
service fees if caller service at that location is discontinued and 
additional travel of \1/4\ mile or more (from the physical address on 
the caller's Form 1093) is required to obtain equivalent service. For 
this purpose, one-sixth of a semiannual fee is refunded for each month 
left in the payment period. The refund is computed from the first day 
of that month (if the effective date of the facility discontinuance is 
on or before the 15th of the month) or from the first day of the next 
month (if the effective date is after the 15th of the month).
    [Revise 6.0 to read as follows:]
6.0  SERVICE REFUSAL OR TERMINATION

6.1  Refusal

    A postmaster may refuse to approve caller service if the applicant 
submits a falsified or incomplete application for caller service; 
within the 2 years immediately before submitting the application, the 
applicant violated a

[[Page 26093]]

standard on the use of the service; or there is substantial reason to 
believe that the service is to be used for activities described in 3.3 
or 3.4.

6.2  Termination

    A postmaster may terminate caller service if the caller or its 
representative falsifies the application for the service; refuses to 
update information on the application; violates any standard on the use 
of the service; conducts himself or herself in a violent, threatening, 
or otherwise abusive manner on postal premises; or uses it for any 
unlawful activity as described in 3.3. The caller is notified of the 
postmaster's determination to refuse or terminate service and of the 
appeal procedures to that determination.

6.3  Customer Appeal

    The applicant or caller may file a petition opposing the 
postmaster's determination to refuse or terminate service within 20 
calendar days after notice, as specified in the postmaster's 
determination and 39 CFR 958. The filing of a petition prevents the 
postmaster's determination from taking effect and transfers the case to 
the USPS Judicial Officer. The Administrative Law Judge's or Judicial 
Officer's decision under 39 CFR 958 constitutes the final USPS 
decision.

6.4  Surrendered Service

    Caller service is deemed surrendered if the caller submits a 
permanent change-of-address order, fails or refuses to pay the 
appropriate fees by the due date, or submits a written notice to 
discontinue service.
* * * * *

D930  General Delivery and Firm Holdout

1.0  GENERAL DELIVERY
    [Amend 1.0 by revising 1.1 and 1.2 to read as follows:]

1.1  Purpose

    General delivery is intended primarily as a temporary means of 
delivery:
    a. For transients and customers not permanently located.
    b. For customers who want post office box service when boxes are 
unavailable.
    c. For customers whose eligibility for carrier delivery is 
restricted by Postal Operations Manual 653.

1.2  Service Restrictions

    General delivery is available at only one facility under the 
administration of a multifacility post office. A postmaster may refuse 
or restrict general delivery:
    a. To a customer who is unable to present suitable identification.
    b. To a customer whose mail volume or service level (e.g., mail 
accumulation) cannot reasonably be accommodated.
* * * * *

E  ELIGIBILITY

E000  Special Eligibility Standards

* * * * *

E020  Department of State Mail

    [In 2.3, remove ``special delivery''; no other change to text.]

E030  Mail Sent by U.S. Armed Forces

    [In 2.6, remove the second sentence; no other change to text.]
* * * * *

E060  Official Mail (Penalty)

    [In 9.2 and 9.6d, replace ``postal card[s]'' with ``stamped 
card[s]''; no other change to text.]
* * * * *

E100  First-Class Mail

E110  Basic Standards

    [In 3.1, 3.2, and 3.2a, replace ``postal card[s]'' with ``stamped 
card[s]''; no other change to text.]
* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *

E612  Additional Standards for Standard Mail (A)

    [In 4.1, remove ``special delivery'' in the third sentence; no 
other change to text.]
* * * * *

E620  Nonautomation Nonpresort Rates

    [In 2.2d, remove ``special delivery''; in 2.5 introductory text, 
remove ``special delivery or''; no other change to text.]

E630  Nonautomation Presort Rates

    [In 3.1, remove ``special delivery'' in the last sentence; no other 
change to text.]
* * * * *

F  FORWARDING AND RELATED SERVICES

F000  Basic Services

F010  Basic Information

    [In 3.0a, remove ``special delivery''; in 4.5, remove 4.5c and 
redesignate current 4.5d and 4.5e as 4.5c and 4.5d, respectively; in 
5.1, replace ``postal cards'' with ``stamped cards''; no other change 
to text.]

F020  Forwarding

    [In 3.3, replace ``postal cards'' with ``stamped cards''; in 3.7, 
remove the second sentence; no other change to text.]

F030  Address Correction, Address Change, FASTforwardSM, and 
Return Services

    [In 5.3, replace ``postal cards'' with ``stamped cards''; no other 
change to text.]

G  GENERAL INFORMATION

G000  The USPS and Mailing Standards

G010  Basic Business Information

G011  Post Offices and Postal Services

    [Amend Exhibit 1.5 by replacing the seventh column heading 
``Special Delivery'' with ``Express Mail''; replacing ``Holiday 
schedule'' with ``Holiday''; and by adding under ``Definition of 
Terms,'' ``Holiday--Service determined by national, area, and/or 
district guidelines''; no other change to text.]

G013  Trademarks and Copyrights

    [In 2.1, replace ``postal cards'' with ``stamped cards''; no other 
change to text.]
* * * * *

P  POSTAGE AND PAYMENT METHODS

P000  Basic Information

P010  General Standards

* * * * *

P014  Refunds and Exchanges

1.0  STAMP EXCHANGES
    [In 1.5, 1.6, 1.6c, 1.6d, 1.8b, 1.8c, and 1.8d, replace ``postal 
card[s]'' with ``stamped card[s]''; no other change to text.]
2.0  POSTAGE AND FEES REFUNDS
* * * * *

2.4  Full Refund

    [In 2.4f, remove ``special delivery,''; no other change to text.]
* * * * *

2.7  Unallowable Refunds

    [Amend 2.7 by revising 2.7b to read as follows:]
    Refunds are not made for the following:
* * * * *
    b. Collect on delivery (COD), Express Mail insurance, insured, and 
registered fees after the USPS accepts the article,

[[Page 26094]]

even if the article is later withdrawn from the mail.
* * * * *

P020  Postage Stamps and Stationery

P021  Stamped Stationery

    [In 3.1, revise the heading to read ``Stamped Card'' and replace 
``P[p]ostal cards'' with ``S[s]tamped cards''; in 4.0, replace ``postal 
cards'' with ``stamped cards (formerly called postal cards)''; no other 
change to text.]

P022  Adhesive Stamps

    [In 2.2d, replace ``postal cards'' with ``stamped cards''; no other 
change to text.]

P023  Precanceled Stamps

    [In 1.1 and 1.3, replace ``P[p]ostal cards'' with ``S[s]tamped 
cards''; in 3.1, replace ``postal cards'' with ``stamped cards''; no 
other change to text.]

P030  Postage Meters and Meter Stamps

    [In 4.8, remove ``special delivery,''; in 4.10, remove ``or special 
delivery mail,''; in 5.4b, remove ``special delivery mail or''; no 
other change to text.]
* * * * *

P100  First-Class Mail

    [In 2.1, replace ``postal cards'' with ``stamped cards''; no other 
change to text.]
* * * * *

R  RATES AND FEES

R000  Stamps and Stationery

* * * * *
    [Revise the heading and text of 3.0 to read as follows:]
3.0  STAMPED CARDS
    Stamped cards are priced as follows:

------------------------------------------------------------------------
                                                                  Total 
               Configuration                 Postage     Fee      price 
------------------------------------------------------------------------
Cut single card...........................     $0.20     $0.00     $0.20
Sheet of 40 cards.........................      8.00      0.00      8.00
Double reply-paid card....................      0.40      0.00      0.40
------------------------------------------------------------------------

* * * * *

R100  First-Class Mail

    [In 1.1 and in the Summary of First-Class Rates, replace ``postal 
cards'' with ``stamped cards''; no other change to text.]
* * * * *

R900  Services

    [Remove current 19.0; renumber current 7.0 through 18.0 as 8.0 
through 19.0, respectively; add new 7.0; and revise other sections to 
read as follows:]
* * * * *
    [Revise 3.0 to read as follows:]
3.0  CALLER SERVICE
    Fees are charged as follows:
    a. For service provided, per semiannual period:

------------------------------------------------------------------------
                           Fee group                               Fee  
------------------------------------------------------------------------
A.............................................................   $250.00
B.............................................................    240.00
C.............................................................    225.00
D.............................................................    225.00
------------------------------------------------------------------------

    b. For each reserved call number, per calendar year (all post 
offices): $30.00.
* * * * *
    [Revise 5.0 to read as follows:]
5.0  CERTIFIED MAIL
    Fee, in addition to postage and other fees, per mailpiece: $1.35.
* * * * *
    [Add new 7.0 to read as follows:]
7.0  EXPRESS MAIL INSURANCE
    Fee, in addition to postage and other fees, for additional Express 
Mail insurance:
    a. For amount of merchandise insurance liability:

------------------------------------------------------------------------
        Insurance coverage desired                       Fee            
------------------------------------------------------------------------
$0.01 to 500.00...........................  None                        
500.01 to 5,000.00........................  $0.90 for each $100 or      
                                             fraction thereof over $500 
                                             in insurance coverage      
                                             desired                    
------------------------------------------------------------------------
                                                                        
                Merchandise maximum liability: $5,000.00.               
------------------------------------------------------------------------

    b. Document reconstruction maximum liability: $500.00.
    [Revise redesignated 8.0 to read as follows:]
8.0  INSURED MAIL
    Fee, in addition to postage and other fees, for merchandise 
insurance liability:

------------------------------------------------------------------------
        Insurance coverage desired                       Fee            
------------------------------------------------------------------------
$0.01 to 50.00............................  $0.75                       
50.01 to 100.00...........................  1.60                        
100.01 to 5,000.00........................  1.60 plus $0.90 for each    
                                             $100 or fraction thereof   
                                             over first $100 in         
                                             insurance coverage desired 
------------------------------------------------------------------------
                                                                        
               Insured mail maximum liability: $5,000.00.               
------------------------------------------------------------------------

9.0  MAILING LIST SERVICE
    [No change to redesignated 9.0.]
10.0  MERCHANDISE RETURN SERVICE
    [No change to redesignated 10.0.]
11.0  METER SERVICE
    [No change to redesignated 11.0.]
12.0  MONEY ORDER
    [No change to redesignated 12.0.]
13.0  PARCEL AIRLIFT (PAL)
    [No change to redesignated 13.0.]
14.0  PERMIT IMPRINT
    [No change to redesignated 14.0.]
    [Revise redesignated 15.0 to read as follows:]
15.0  POST OFFICE BOX SERVICE
    For service provided as described in D910:
    a. Deposit per key issued: $1.00.
    b. Box fee per semiannual (6-month) period:

[[Page 26095]]



------------------------------------------------------------------------
                                           Box size and fee             
         Fee  group         --------------------------------------------
                                1        2        3        4        5   
------------------------------------------------------------------------
A..........................   $24.00   $37.00   $64.00  $121.00  $209.00
B..........................    22.00    33.00    56.00   109.00   186.00
C..........................    20.00    29.00    52.00    86.00   144.00
D..........................     6.00    10.00    18.00    26.50    41.50
E..........................     0.00     0.00     0.00     0.00     0.00
------------------------------------------------------------------------

    [Revise redesignated 16.0 to read as follows:]
16.0  REGISTERED MAIL
    The mailer must declare the full value of the article at the time 
of mailing and must pay the appropriate fee based on that value as 
shown in Exhibit 16.0. Any article sent as registered mail is insured, 
except that the mailer may elect not to insure articles valued up to 
and including $100.

                      Exhibit 16.0.--Registry Fees                      
------------------------------------------------------------------------
        Declared value (dollars)           Fee (in addition to postage) 
------------------------------------------------------------------------
(Without Insurance):                                                    
    0.00 to 100.00.....................  $ 4.85                         
(With Insurance):                                                       
    0.00 to 100.00.....................    4.95                         
    100.01 to 500.00...................    5.40                         
    500.01 to 1,000.00.................    5.85                         
    1,000.01 to 2,000.00...............    6.30                         
    2,000.01 to 3,000.00...............    6.75                         
    3,000.01 to 4,000.00...............    7.20                         
    4,000.01 to 5,000.00...............    7.65                         
    5,000.01 to 6,000.00...............    8.10                         
    6,000.01 to 7,000.00...............    8.55                         
    7,000.01 to 8,000.00...............    9.00                         
    8,000.01 to 9,000.00...............    9.45                         
    9,000.01 to 10,000.00..............    9.90                         
    10,000.01 to 11,000.00.............   10.35                         
    11,000.01 to 12,000.00.............   10.80                         
    12,000.01 to 13,000.00.............   11.25                         
    13,000.01 to 14,000.00.............   11.70                         
    14,000.01 to 15,000.00.............   12.15                         
    15,000.01 to 16,000.00.............   12.60                         
    16,000.01 to 17,000.00.............   13.05                         
    17,000.01 to 18,000.00.............   13.50                         
    18,000.01 to 19,000.00.............   13.95                         
    19,000.01 to 20,000.00.............   14.40                         
    20,000.01 to 21,000.00.............   14.85                         
    21,000.01 to 22,000.00.............   15.30                         
    22,000.01 to 23,000.00.............   15.75                         
    23,000.01 to 24,000.00.............   16.20                         
    24,000.01 to 25,000.00.............   16.65                         
                                         (Additional fees for articles  
                                          valued over $25,000 are for   
                                          handling only.)               
    25,000.01 to 1,000,000.00..........  $16.65 plus handling charge of 
                                          $0.45 per $1,000 or fraction  
                                          over first $25,000.           
    1,000,000.01 to 15,000,000.00......  $455.40 plus handling charge of
                                          $0.45 per $1,000 or fraction  
                                          over first $1,000,000.        
    Over 15,000,000.00.................  $6,755.40 plus additional      
                                          charges may be made based on  
                                          weight, space, and value.     
------------------------------------------------------------------------
        Registered mail maximum insurance liability: $25,000.00.        
------------------------------------------------------------------------

17.0   RESTRICTED DELIVERY
    [No change to redesignated 17.0.]
    [Revise redesignated 18.0 to read as follows:]
18.0  RETURN RECEIPT
    Fee, in addition to postage and other fees, per mailpiece:

------------------------------------------------------------------------
                              Type                                 Fee  
------------------------------------------------------------------------
Requested at time of mailing showing to whom, signature, date,          
 and addressee's address (if different)........................    $1.10
Requested after mailing showing only to whom and date delivered     6.60
------------------------------------------------------------------------

    [Revise redesignated 19.0 to read as follows:]
19.0  RETURN RECEIPT FOR MERCHANDISE
    Fee, in addition to postage and other fees, per mailpiece:

------------------------------------------------------------------------
                              Type                                 Fee  
------------------------------------------------------------------------
Showing to whom, signature, date, and addressee's address (if           
 different)....................................................    $1.20

[[Page 26096]]

                                                                        
Delivery record................................................     6.60
------------------------------------------------------------------------

20.0  SPECIAL HANDLING
    [No change to 20.0.]

S  SPECIAL SERVICES

S000  Miscellaneous Services

S010  Indemnity Claims

* * * * *
2.0  GENERAL FILING INSTRUCTIONS
* * * * *

2.5  Evidence of Insurance

    [Revise 2.5 to read as follows:]
    For a claim involving insured, COD, registered, or Express Mail 
service, the customer must present any of the following evidence 
showing that the particular service was purchased:
    a. The original mailing receipt issued at the time of mailing 
(reproduced copies are not acceptable).
    b. The wrapper showing the names and addresses of the sender and 
the addressee and the proper mail endorsement, tag, or label showing 
that the article was sent insured, COD, registered with postal 
insurance, or Express Mail. If only the wrapper is submitted, indemnity 
can be limited to $100 for insured, $50 for COD, $100 for registered 
mail, and $500 for Express Mail.
* * * * *

2.9  Proof of Loss

    [Revise 2.9 to read as follows:]
    To file a claim, the sender must provide proof of loss of insured 
or registered mail. Proof of loss is not required for COD or Express 
Mail claims. Any one of these documents is acceptable:
    a. A letter or statement from the addressee, dated at least 30 days 
(15 days for registered mail) after the date that the article was 
mailed, reporting that the addressee did not receive the article. The 
statement or a copy of it must be attached to the claim.
* * * * *

2.11  Payable Claim

    [Amend 2.11 by revising 2.11d to read as follows:]
    Insurance for loss or damage to insured, registered, or COD mail 
within the amount covered by the fee paid or within the indemnity 
limits for Express Mail explained in 2.12 is payable for the following:
* * * * *
    d. Reasonable costs incurred duplicating documents such as:
* * * * *

2.12  Payable Express Mail Claims

    [Revise 2.12 to read as follows:]
    In addition to the payable claims in 2.11, the following are 
payable for Express Mail:
    a. For Express Mail insurance, nonnegotiable documents are insured 
against loss, damage, or rifling while in transit. Coverage is limited 
to $500 per piece (the unit on which postage is paid), subject to a 
maximum limit per occurrence as provided in 2.12a(4). Claims for 
document reconstruction insurance must be supported by a statement of 
expense incurred in reconstruction. For this standard, while in transit 
begins when the USPS receives custody of the insured material and ends 
when the material is delivered to the addressee or, if undeliverable, 
when the sender receives the material on return. Nonnegotiable 
documents include audit and business records, commercial papers, and 
such other written instruments for the conduct and operation of banks 
and banking institutions that have not been made negotiable or cannot 
be negotiated or converted into cash without forgery. Nonnegotiable 
documents can be in hard copy, disk, tape, microfilm, or other forms of 
data storage. Articles such as artwork, collector or antique items, 
books, pamphlets, readers proofs, repro proofs, separation negatives, 
engineering drawings, blueprints, circulars, advertisements, film, 
negatives, and photographs are considered merchandise, not documents. 
Indemnity for document reconstruction is paid as follows:
    (1) For payments made (or which are payable) for reasonable costs 
incurred in the reconstruction of the exact duplicate of a lost or 
damaged nonnegotiable document. Indemnity is not paid for the cost of 
preparing the document mailed, or for the mailer's time in preparing 
the document mailed or reconstructed. Except for the per page copying 
cost, indemnity is not paid for documents if copies of the lost 
document are available or if they could have been made before mailing.
    (2) Reasonable reconstruction expenses incurred or obligated 
between the time of guaranteed or scheduled delivery and actual 
delivery.
    (3) Loss sustained by the use of funds to maintain cash balances 
during the period of document reconstruction (based on the applicable 
Federal Reserve discount rate). The period begins at the scheduled 
delivery time and may not exceed 15 days.
    (4) Catastrophic loss for multiple Express Mail items, such as a 
major fire, limited to $5,000, regardless of the number of Express Mail 
items, or the identity or number of customers involved. Each claim 
resulting from a catastrophic loss first is adjudicated individually. 
If the preliminary adjudication exceeds $5,000, the percentage of the 
sum represented by each individual settlement is applied to the $5,000 
to determine each claimant's pro rata share of the final settlement, 
not to exceed $500 per piece.
    b. Merchandise insurance coverage is provided against loss, damage, 
or rifling and is limited to $500. (Additional insurance, up to a 
maximum liability of $5,000, may be purchased for merchandise valued at 
more than $500.)
    c. For negotiable items, currency, or bullion, the maximum 
indemnity is $15.
* * * * *

2.14  Nonpayable Claims

    [Amend 2.14 by revising the introductory text and 2.14r, 2.14s, and 
2.14t to read as follows:]
    Indemnity is not paid for collect on delivery (COD), insured, or 
registered service or for Express Mail in these situations:
* * * * *
    r. Negotiable items (defined as instruments that can be converted 
to cash without resort to forgery), currency, or bullion valued in 
total at more than $15 per shipment sent by Express Mail, except under 
2.12c.
    s. Consequential loss of Express Mail claimed, except under 
2.12a(3).
    t. Nonmailable items, prohibited items, or restricted items not 
prepared and mailed according to postal standards, or any item packaged 
in such a manner that it could not have reached its destination 
undamaged in the normal course of the mail.
* * * * *

S070  Mixed Classes

1.0  BASIC INFORMATION
    [Revise 1.1 to read as follows:]
    For a Priority Mail drop shipment, enclosed First-Class Mail may be 
sent certified; enclosed Standard Mail may be sent special handling. 
Enclosed mail, regardless of class, may not be sent registered, 
insured, or collect on delivery (COD). No special services may be given 
to the Priority Mail segment of the drop shipment.
    [Revise the heading and text of 1.2 to read as follows:]

1.2  Special Handling

    A combination mailpiece sent as a Standard Mail parcel may be sent 
using

[[Page 26097]]

special handling; only one special handling fee applies to the parcel.
* * * * *

S500  Special Services for Express Mail

1.0  AVAILABLE SERVICES
* * * * *

1.5  Insurance and Indemnity

    [Amend 1.5 by removing current 1.5a, 1.5d, and 1.5e and 
redesignating and revising current 1.5b as 1.5a, current 1.5c as 1.5b, 
current 1.5f as 1.5c, and current 1.5g as 1.5d to read as follows:]
    Express Mail is insured against loss, damage, or rifling, subject 
to these standards:
    a. Insurance coverage for Express Mail drop shipment ends on 
receipt at the destination postal facility.
    b. All Express Mail signed for by the addressee, the addressee's 
agent, or the delivery employee constitutes a valid delivery, and no 
indemnity for loss is paid. A waiver of signature may not be used for 
Express Mail COD or Express Mail with additional insurance.
    c. Merchandise insurance coverage is provided against loss, damage, 
or rifling and is limited to $500. (Additional insurance under 1.6 may 
be purchased, up to a maximum liability of $5,000, for merchandise 
valued at more than $500.) Nonnegotiable documents are insured against 
loss, damage, or rifling, up to $500 per piece, subject to the maximum 
limit per occurrence as defined in S010.
    d. Additional terms, coverage, and procedures of indemnity claims 
are in S010.
    [Add new 1.6 to read as follows:]

1.6  Additional Insurance

    Additional insurance, up to a maximum coverage of $5,000, may be 
purchased for merchandise valued at more than $500 sent by Express 
Mail. The insurance fee is entered in the block marked ``Insurance'' on 
the mailing label. If the label does not contain this specific block, 
the mailer uses the ``COD'' block by crossing out ``COD,'' writing 
``INS'' to the right, and entering the fee for the applicable coverage. 
Coverage is limited to the actual value of the contents, regardless of 
the fee paid, or the highest insurance value increment for which the 
fee is fully paid, whichever is lower. If a waiver of signature is 
requested, additional insurance coverage is void.
* * * * *
    [Revise 3.0 to read as follows:]
3.0  EXPRESS MAIL DROP SHIPMENT
    Mail enclosed in an Express Mail drop shipment may be sent 
certified (if First-Class Mail) or special handling (if Standard Mail). 
The enclosed mail may not be sent collect on delivery (COD), insured, 
or registered. For Express Mail indemnity coverage, the content of each 
Express Mail pouch is considered one mailpiece.

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

1.0  BASIC INFORMATION:
    [Revise 1.1 to read as follows:]

1.1  Description

    Registered mail is the most secure service that the USPS offers. It 
incorporates a system of receipts to monitor the movement of the mail 
from the point of acceptance to delivery. Registered mail service 
provides the sender with a mailing receipt, and a delivery record is 
kept at the post office of address.
* * * * *
2.0  FEES AND LIABILITY
* * * * *
    [Remove current 2.4 and redesignate current 2.5 as 2.4, current 2.6 
as 2.5, current 2.7 as 2.6, and current 2.8 as 2.7; revise 2.3 and 
redesignated 2.4 to read as follows:]

2.3  Postal Insurance

    Postal insurance is provided for articles valued at more than $100, 
up to a maximum insured value of $25,000, and is included in the fee. 
For articles valued at $100 or less, postal insurance may be purchased 
by the sender at the time of mailing, subject to the standards for 
registered mail and payment of the corresponding fee.

2.4  Refund

    A fee for registered mail is not refunded after the USPS accepts 
the mail even if the sender later withdraws the mail under 3.9. A fee 
for return receipt service or restricted delivery service is not 
refunded unless the USPS fails to provide the service. The sender must 
present the registered mail receipt showing payment for these services.
* * * * *

S912  Certified Mail

1.0  BASIC INFORMATION
* * * * *
    [Revise 1.2 to read as follows:]

1.2  Eligible Matter

    Only mailable matter on which postage is paid at a First-Class Mail 
rate (including Priority Mail) may be accepted as certified mail.
* * * * *
2.0  MAILING
* * * * *
    [Amend 2.5 by revising 2.5b and 2.5c to read as follows:]

2.5  Procedure

    A mailer of certified mail must:
* * * * *
    b. If a return receipt is requested, check the block on the mailing 
receipt to show the fee. Near the certified mail endorsement on the 
address side, add the endorsement ``Return Receipt Requested.'' Enter 
the certified mail number on the return receipt card, address it to 
himself or herself, and attach it to the back of a small envelope or on 
the front of a package or large envelope, if the card does not cover 
the address. Enter the name and delivery address on the reverse of the 
return receipt to show where the receipt is to be sent. When a return 
receipt is requested, a complete return address (sender's name and 
delivery address) is required on the mailpiece. The name and delivery 
address entered on the reverse of the return receipt do not have to 
match the sender's name and return address on the mailpiece.
    c. Affix to the envelope enough postage to pay for the certified 
mail fee and First-Class Mail rate and, if requested, the return 
receipt fee.
* * * * *

S913  Insured Mail

1.0  BASIC INFORMATION
    [Revise 1.1 and 1.5 to read as follows:]

1.1  Description

    Insured mail provides up to $5,000 indemnity coverage for a lost, 
rifled, or damaged article, subject to the standards for the service 
and payment of the applicable fee. No record of insured mail is kept at 
the office of mailing. Insured mail service provides the sender with a 
mailing receipt. For mail insured for more than $50, a delivery record 
is kept at the post office of address. Insured mail is dispatched and 
handled in transit as ordinary mail.
* * * * *

1.5  Additional Services

    Subject to applicable standards and fees, special handling, parcel 
airlift, and merchandise return services may also be used with insured 
mail. Restricted delivery service and return receipt service (Form 
3811) may be obtained for parcels insured for more than $50.
* * * * *

[[Page 26098]]

S915  Return Receipt

1.0  BASIC INFORMATION
    [Revise the heading of 1.3 and text of 1.1, 1.2, and 1.3 to read as 
follows:]

1.1  Description

    Return receipt service provides a mailer with evidence of delivery. 
A return receipt also supplies the recipient's actual delivery address 
if it is different from the address used by the sender. A return 
receipt may be requested before or after mailing.

1.2  Availability

    The service is available only for Express Mail and mail sent as 
certified, collect on delivery (COD), insured for more than $50, or 
registered mail. After delivery, the USPS mails the return receipt to 
the sender.

1.3  Endorsement

    Mail for which return receipt service is requested must be endorsed 
``Return Receipt Requested'' above the delivery address and to the 
right of the return address.
* * * * *

S917  Return Receipt for Merchandise

1.0  BASIC INFORMATION
    [Revise the heading of 1.4 and text of 1.1, 1.2, 1.3, and 1.4 to 
read as follows:]

1.1  Description

    Return receipt for merchandise service is a form of return receipt 
service that provides the sender with a mailing receipt and a return 
receipt. A delivery record is kept at the post office of address, but 
no record is kept at the office of mailing. A return receipt for 
merchandise also supplies the recipient's actual delivery address if it 
is different from the address used by the sender. Mail using this 
service is dispatched and handled in transit as ordinary mail. This 
service does not include insurance coverage. A return receipt for 
merchandise may not be requested after mailing, and restricted delivery 
service is not available.

1.2  Availability

    The service is available only for merchandise sent at the postage 
rates for Priority Mail, Single-Piece Standard Mail, Parcel Post, Bound 
Printed Matter, Special Standard Mail, or Library Mail. This service 
may not be used on international mail.

1.3  Additional Services

    Special handling is available for Single-Piece Standard Mail, 
Parcel Post, Bound Printed Matter, Special Standard Mail, and Library 
Mail, subject to payment of the applicable fee.

1.4  Endorsement

    Form 3804 is used for return receipt for merchandise service. The 
form and the endorsement ``Return Receipt Requested'' must be placed 
above the address and to the right of the return address.
* * * * *
2.0  MAILING
    [In 2.2d, remove ``special delivery or''; no other change to text.]
* * * * *

S930  Handling

    [Remove current 1.0; renumber 2.0 and 3.0 as 1.0 and 2.0, 
respectively, and revise redesignated 1.1, 1.2, and 1.5 to read as 
follows:]
1.0  SPECIAL HANDLING

1.1  Description

    Special handling service provides preferential handling, but not 
preferential delivery, to the extent practicable in dispatch and 
transportation. The service does not itself insure the article against 
loss or damage. Special handling service is mandatory for material that 
requires extra care in handling, transportation, and delivery. Unless 
the special handling fee is paid, a nonmachinable surcharge applies to 
certain categories of items mailed at Parcel Post inter-BMC rates as 
required in E620.

1.2  Availability

    Special handling service is available only for Single-Piece 
Standard Mail, Parcel Post, Bound Printed Matter, Special Standard 
Mail, and Library Mail.
* * * * *

1.5  Fee and Postage

    The applicable special handling fee must be paid in addition to 
postage for each addressed piece for which special handling service is 
desired. Except for official mail, the special handling fee must be 
paid at the time of mailing. For official mail, the special handling 
fee is collected under established reimbursement procedures.
* * * * *
2.0  PARCEL AIRLIFT (PAL)
* * * * *
    [Redesignate current 3.3 and 3.4 as 2.4 and 2.5, respectively; add 
new 2.3 to read as follows:]

2.3  Additional Services

    The following services are available if the applicable standards 
for the services are met and the additional service fees paid:
    a. Certificate of mailing.
    b. Insured mail.
    c. Restricted delivery (if insured for more than $50).
    d. Return receipt (if insured for more than $50).
    e. Special handling.
* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 97-12209 Filed 5-7-97; 9:57 am]
BILLING CODE 7710-12-P