[Federal Register Volume 62, Number 141 (Wednesday, July 23, 1997)]
[Notices]
[Pages 39660-39709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19230]



[[Page 39659]]

_______________________________________________________________________

Part III





Postal Rate Commission





_______________________________________________________________________



Filing of Proposed Postal Rate, Fee, and Classification Changes and 
Order Instituting Proceedings; Notice

  Federal Register / Vol. 62, No. 141 / Wednesday, July 23, 1997 / 
Notices  

[[Page 39660]]


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POSTAL RATE COMMISSION

[Docket No. R97-1; Order No. 1186]


Notice of The U.S. Postal Service's Filing of Proposed Postal 
Rate, Fee, and Classification Changes and Order Instituting Proceedings

    Issued July 11, 1997.
    Before Commissioners: Edward J. Gleiman, Chairman; H. Edward 
Quick, Jr., Vice Chairman; George W. Haley; W.H. ``Trey'' LeBlanc 
III

I. Notice of the Service's Filing

    On July 10, 1997, the United States Postal Service, acting under 
sections 3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 
Secs. 3622, 3623), filed a Request with the Postal Rate Commission for 
a recommended decision on proposed changes in domestic postage rates 
and fees and in certain mail classifications. The proposed rate and fee 
changes affect all classes of mail. The Request maintains that without 
the rate and fee changes, the Postal Service would incur a revenue 
deficiency of approximately $2.4 billion in the proposed test year 
(1998), in contravention of 39 U.S.C. Sec. 3621. The Request states 
that proposed rates will generate a revenue surplus of approximately 
$41.9 million.
    An overview of the Service's filing follows. The entire contents of 
the Service's filing, along with supporting documentation, is available 
for public inspection in the Commission's docket section. See Part 
II.F. for information about Docket Room operations.
    First-Class Mail rates. The Service's Request includes a proposal 
to increase the price of the First-Class stamp by one cent, from 32 
cents to 33 cents, and to hold the rate for each additional ounce of 
First-Class Mail at its current price of 23 cents per ounce. Basic 
postage for a card changes by one cent, increasing from 20 to 21 cents. 
In addition, the Service is proposing a prepaid reply mail category, at 
a discounted rate of 30 cents. The Service states that this discounted 
rate is intended to benefit the public served by large-volume business 
mailers, such as utility companies or credit card companies. Additional 
information about this proposal, as well as about rates affecting 
mailers using other classes of mail, appears later in this Notice.
    Major classification changes; rate design In addition to rate and 
fee changes, the Service is also proposing changes in classification 
and rate design. Both types of changes can have a significant effect on 
postage and mailing requirements. A summary of the Service's proposed 
classification changes follows. To obtain additional details, persons 
interested in rate design changes should consult the Service's filing 
and the proposed rate schedules which appear as Attachment B to this 
notice.
    First-Class Mail classification changes. The Service proposes three 
changes in the structure of First-Class Mail. One change entails the 
introduction of Prepaid Reply Mail and Qualified Business Reply Mail 
postage rates for both letters and cards, at the discounted rate of 30 
cents for letters and 18 cents for cards. Another change involves the 
elimination of the heavy-piece discount, which currently applies to 
presort mail weighing more than two ounces. The third change is the 
introduction of a Hazardous Medical Materials surcharge.
    The Service states that with Prepaid Reply Mail, businesses or 
other organizations can provide their correspondents with Postal 
Service-approved, postage-paid courtesy envelopes or cards that will 
enable the correspondents to return mail, such as bill payments, 
without affixing postage. Postage and a monthly administration fee for 
this mail must be prepaid by the envelope provider. Qualified Business 
Reply Mail, with proposed rates identical to Postage Reply Mail (PRM), 
differs in terms of postage accounting and auditing. However, as with 
PRM, the provider of the envelope would pay the postage and fees under 
the Service's proposal.
    Periodicals classification changes. In the Periodicals class 
(formerly referred to as second-class mail), the Postal Service 
proposes realignment of the existing 3/5-digit rate category in each of 
the subclasses (Regular, Within County, Nonprofit and Classroom). 
Specifically, the Service proposes splitting the category that 
currently includes both 3-and 5-digit mail into separate 3-digit and 5-
digit categories. Thus, all Periodicals subclasses will have 3-digit 
piece rates and 5-digit piece rates for both letters and flats for 
automation compatible mail. The proposal also entails including pieces 
sorted to non-unique 3-digit ZIP codes in the proposed 3-digit 
classification. Currently, non-unique 3-digit ZIP Codes are included in 
the basic (required) presort category.
    Standard Mail classification changes. In Standard Mail (formerly 
third-class and fourth-class mail), the Service proposes the 
elimination of the Standard Mail (A) Single-Piece subclass and the 
introduction of a Residual Shape surcharge applicable to pieces that 
are not letter or flat shaped. See generally USPS-T-36 at 1-2. For 
Standard Mail (B), the Service proposes a number of new parcel 
discounts and expands weight and size limits.
    Special Services classification changes. The Service proposes 
classification changes affecting registered mail, business reply mail, 
and the newly-proposed prepaid reply mail. The registered mail proposal 
would limit uninsured registered mail to merchandise of no declared 
value. The Service also proposes a bulk insurance discount of 40 cents 
for bulk mailers who process mailing records electronically. 
Classification changes affecting business reply mail include adding an 
annual permit fee and a monthly accounting fee for permit reply mail. 
The introduction of prepaid reply mail was discussed earlier in this in 
connection with the Service's proposed First-Class Mail rates. In a 
separate but related matter, the Service also proposes restructuring 
the DMCS language for special services. USPS-T-39 at 102. The effect of 
this restructuring, which includes renumbering and numerous non-
substantive editorial changes, is shown in Attachment A.
    Other changes. Among other things, the Service is proposing 
delivery confirmation services for Priority Mail and for Standard Mail 
(B). In Standard Mail (A) the Service's proposal reduces pound rates 
for various categories of advertising mail. This proposal also raises 
substantially the Enhanced Carrier Route Basic Letter rate.
    Costing. The Service's Request is based, in part, on costing 
approaches that differ significantly from previous approaches. These 
changes affect, among other things, the analysis and attribution of 
mail processing costs, carrier costs, and transportation costs. The 
overall effect of these changes is that the levels of attribution from 
which mark-ups are calculated are considerably lower than the Service 
proposed in Docket No. R94-1 or the Commission used in its 
recommendation in that proceeding.
    Contents of the Service's filing. The Service's filing includes its 
formal Request, seven attachments (A-G) and 42 pieces of testimony, 
presented by 40 witnesses. Testimony is supported, in many instances, 
with exhibits, workpapers, and library references. Attachment A 
identifies requested changes in the DMCS. Attachment B includes a 
comparison of current and proposed rates and fees. Attachment C, in 
response to rule 54(b)(2), specifies the rules, regulations and 
practices that establish standards of service and conditions of 
mailability. Attachment D includes the certification, required by rule 
54(p), concerning the accuracy of

[[Page 39661]]

cost statements and other documentation submitted with the Request. 
Attachment E contains audited financial statements. Attachment F 
provides an index identifying witnesses by name, testimony, exhibits 
and workpapers by number, and the name and telephone number of the 
witness's attorney. Attachment G contains the Service's Compliance 
Statement. This statement addresses pertinent provisions of Commission 
rules of practice 54 and 64. It also refers to a separate notice that 
discusses several matters concerning the alternate cost presentation 
required under the rule. See Notice of the Postal Service Concerning 
Provision of Information Pursuant to Rule 54(a)(1) (July 10, 1997), 
citing (USPS-LR-H-196, ``Rule 54(a)(1) Alternate Commission Cost 
Presentation (Base Year)).''
    Rate and fee increases. The approximate average percentage 
increases proposed by the Postal Service for the major categories of 
mail service follow. Since the percentages shown are averages, 
increases for individual mail pieces may differ substantially.

        The Postal Service's Proposed Percentage Changes in Rates       
------------------------------------------------------------------------
                                                                 Percent
                        Classification                           change 
------------------------------------------------------------------------
First Class Mail                                                        
  Letters.....................................................       3.2
  Cards.......................................................       5.9
Priority Mail.................................................       7.4
Express Mail..................................................       3.7
Periodicals:                                                            
  In County...................................................       3.4
  Nonprofit...................................................       3.9
  Classroom...................................................       4.8
  Regular Rate................................................       3.5
Standard Mail A:                                                        
  Commercial Regular..........................................       4.1
  Commercial Enhanced.........................................       3.2
  Nonprofit...................................................      15.1
  Nonprofit Enhanced..........................................      -4.8
Standard Mail B:                                                        
  Parcel Post.................................................      10.2
  Bound Printed Matter........................................       5.0
  Special.....................................................       0.0
  Library.....................................................     13.1 
------------------------------------------------------------------------
 Source: USPS-T-30, Exhibit D.                                          


    The Postal Service's Proposed Percent Changes in Fees for Special   
                                Services                                
------------------------------------------------------------------------
                                                                 Percent
                       Special services                          change 
------------------------------------------------------------------------
Post Office Boxes and Caller Service..........................        18
Certified Mail................................................        15
C.O.D.........................................................        12
Insurance.....................................................        17
Money Orders..................................................         0
Registered Mail...............................................        51
Stamped Cards.................................................       (1)
Stamped Envelopes.............................................        16
Address Correction............................................         0
Business Reply................................................        51
Certificates of Mailing.......................................        15
First Class Presort Mailing Fee...............................        18
Standard (B) Special Presort Mailing Fee......................        18
Parcel Airlift................................................        13
Periodicals Applications......................................        -1
Special Handling..............................................       221
Standard (A) Presort Mailing Fee..............................        18
Correction of Mailing Lists...................................        18
Furnishing Address Changes to Election Boards.................        18
Merchandise Return............................................         0
On-Site Meter Setting.........................................       1.5
Permit Imprint................................................        18
Zip-Coding of Mailing Lists...................................        17
Return Receipts...............................................        32
Restricted Delivery...........................................        0 
------------------------------------------------------------------------
\1\ New 2 cents fee.                                                    
                                                                        
 Source: USPS-T-30, Exhibit E.                                          

    A complete list of current and proposed rates and fees appears in 
Attachment B.
    Requested Classification Changes. The Postal Service's Request asks 
the Commission to recommend certain classification changes. These 
changes alter the Domestic Mail Classification Schedule (DMCS) and 
appear in Attachment A. The Service identifies recent amendments to the 
current text of the DMCS, and indicates that these amendments, along 
with the DMCS provisions codified at 39 CFR Part 3001, subpart C, 
appendix A, are incorporated by reference in its Request. See generally 
Attachment A at 1. In addition, the Service notes that it proposes 
renumbering the classification schedules for special services. A table 
identifying the changes appears in Attachment A at 2.
    Availability of the Service's filing. The Postal Service's Request, 
along with supporting documentation, is available for public inspection 
in the Commission's docket section. See Part II. F for information 
about Docket Room hours.

II. Order Instituting Proceedings

    The Commission hereby institutes proceedings to consider the Postal 
Service's Request, which has been assigned Docket No. R97-1. Details 
regarding the conduct of this proceeding follow. The Commission will 
issue additional notices regarding this proceeding as needed.
    A. Nature of proceedings and possibility that the Commission's 
recommendation may differ from the Service's proposed changes. 
Proceedings in this docket will concern, in the first instance, the 
specific changes in current postal rates, fees and mail classification 
provisions proposed by the Postal Service in its Request. The 
Commission will also conduct public hearings to receive evidence 
sponsored by other interested parties, including the Commission's 
Office of the Consumer Advocate, that responds to the Postal Service's 
proposed changes and the evidence it offers in support of those 
changes. These presentations may include alternative rate, fee and mail 
classification proposals.
    After the conclusion of hearings and the receipt of briefs from the 
Postal Service and other parties, the Commission will consider all 
proposals advanced and arguments made in conducting its deliberations 
in the case. Depending upon its assessment of the public policies and 
statutory factors mandated by the Postal Reorganization Act, the 
Commission may or may not recommend the exact array of rate, fee and 
mail classification changes requested by the Postal Service, or 
proposed in the direct cases of other participants. In order to 
accommodate applicable statutory considerations, while at the same time 
observing the technical constraints of setting rates and fees for all 
postal services, the Commission may recommend a schedule of postal 
rates and fees that will differ appreciably from those requested by the 
Postal Service or contained in the parties' alternative proposals. 
Similarly, the Commission may recommend mail classification changes 
different from those proposed by the Postal Service and other parties, 
or may decline to recommend proposed classification changes but address 
their objectives through other recommended adjustments in rates or fees 
for existing mail categories.

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B. Participation: full, limited and commenter status. There are 
three main types of participation in Commission proceedings: full, 
limited or commenter status. Formal intervention in hearings on the 
Postal Service request generally takes the form of full 
intervention. However, the status of limited participant is also 
available under certain circumstances. Persons intending to seek 
either full or limited status must file a notice of intervention 
that complies with the Commission rules. These rules require 
certain information and representations, such as whether the 
intervenor intends to actively participate in the proceeding. 
Commenter status is available to those wishing to express their 
views informally. This status does not require a notice of 
intervention or compliance with the Commission's evidentiary rules. 
Other distinctions among the forms of participation are explained 
in Commission rules 20, 20a and 20b. (39 CFR 3001.20, 20a and 20b) 
Questions about the interpretation and application of these rules 
should be directed to the Commission's Office of Legal Advisor at 
(202) 789-6820.

    Notices of intervention should be sent to the attention of Margaret 
P. Crenshaw, Secretary of the Commission, 1333 H Street, NW, Suite 300, 
Washington, DC 20268-0001, and are to be filed on or before August 6, 
1997. In addition, intervenors are requested to provide a telephone 
number, facsimile number, and e-mail address if available.
    C. Representation of the general public. The Commission designates 
W. Gail Willette, Director of the Commission's Office of the Consumer 
Advocate (OCA), as the representative of the general public in this 
proceeding. Ms. Willette shall direct the activities of Commission 
personnel assigned to assist her and, at an appropriate time, provide 
the names of these employees for the record. Neither she nor the 
assigned personnel shall participate in or advise as to any Commission 
decision in this proceeding, other than in their designated capacity. 
Parties shall serve the OCA separately with three copies of all filings 
in addition to, and at the same time as they effect service on the 
Commission.

D. Scheduling: Hearing schedule and date for prehearing conference 
procedural schedule. The Commission intends to conduct this case 
with the utmost expedition consistent with the due process rights 
of all participants. Upon intervention, participants may submit 
formal discovery or contact the Postal Service to request an 
informal technical conference. Attachment C to this Notice and 
Order sets out the procedural schedule for the conduct of this 
case. Participants should address requests to adjust this schedule 
to the Presiding Officer.

    Prehearing conference. An initial prehearing conference will be 
held on July 30, 1997, for the purpose of facilitating the conduct of 
this case. Participants proposing to raise topics for discussion at the 
prehearing conference should file notice to that effect on or before 
July 25, 1997. In accordance with the Commission's goal of expeditious 
consideration, the Commission will conduct all prehearing conferences 
and hearings en banc (39 CFR 3001.30(b)). Additional prehearing 
conferences will be scheduled if needed. Unless otherwise indicated, 
all conferences and hearings will begin at 9:30 a.m. in the Postal Rate 
Commission's hearing room, 1333 H Street NW, Suite 300, Washington, DC 
20268-0001. Hearings will be conducted on the record and transcribed by 
an official reporter, unless the presiding officer determines 
otherwise.
    E. Special rules of practice. The Special Rules of Practice for 
this case are set forth in Attachment D. These Special Rules are 
identical to the special rules currently in use in Docket No. MC97-4. 
Participants should address requests to adjust these rules to the 
Presiding Officer.
    F. 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 the above-captioned 
proceeding.
    2. Notices of intervention shall be filed by August 6, 1997.
    3. W. Gail Willette, Director of the Office of the Consumer 
Advocate, is designated to represent the interests of the general 
public in this proceeding.
    4. A prehearing conference in this proceeding will be held July 30, 
1997. The hearing will begin at 9:30 a.m. in the Postal Rate Commission 
hearing room, 1333 H Street NW, Suite 300, Washington, DC 20268-0001.
    5. Topics for discussion at the prehearing conference should be 
submitted on or before July 25, 1997.
    6. The Procedural Schedule for the conduct of this proceeding is 
set out in Attachment C.
    7. These proceedings shall be conducted pursuant to special rules 
of practice set out in Attachment D.
    8. The Secretary shall cause this Notice and Order to be published 
in the Federal Register.
    By the Commission.
Margaret P. Crenshaw,
Secretary.

Attachment A--Requested Changes in the Domestic Mail Classification 
Schedule

    In its Request, the Postal Service asks the Commission to recommend 
certain changes in the Domestic Mail Classification Schedule (DMCS). 
The requested changes alter the DMCS as amended from time-to-time. The 
most recent amendments are the Decision of the Governors on the 
Recommended Decision of the Postal Rate Commission on Special Services 
Fees and Classifications, Docket No. MC96-3 (Special Services 
Decision), as implemented by Resolution 97-7 of the Board of Governors 
and the Decision of the Governors on the Recommended Decision of the 
Postal Rate Commission on the Experimental Nonletter-Size Business 
Reply Mail Categories and Fees, Docket No. MC97-1 (BRM Decision), as 
implemented by Resolution 97-8 of the Board of Governors.
    The current DMCS (which is published in part at 39 CFR Part 3001, 
subpart C, appendix A, in part as Attachment A to the Special Services 
Decision (62 Fed. Reg. 26,099), in part as Attachment A to the BRM 
Decision (62 Fed. Reg. 25,756), and in part as Attachment B to the 
Decision of the Governors of the United States Postal Service on the 
Recommended Decision of the Postal Rate Commission on Nonprofit 
Standard Mail, Nonprofit Enhanced Carrier Route Standard Mail, 
Nonprofit Periodicals, and Within County Periodicals, Docket No. MC96-2 
(61 Fed. Reg. 42,464)), is incorporated by reference in the Service's 
Request.
    Except as otherwise noted, proposed additions to text of the 
classification schedules are underlined, and proposed deletions are in 
brackets. Classification schedules for special services, which are 
currently numbered as schedules SS-1-6, SS-8-16, and SS-18-20, are 
renumbered as indicated in the table below. Existing section numbers 
for the special service schedules do not appear as overstricken text in 
this attachment;

[[Page 39663]]

however, edits to the remaining text of the renumbered sections appear 
as they are printed in the existing special service schedules, and 
edits to the remaining text are in brackets or underlined, as 
appropriate.

   Special Services--DMCS Cross-Reference Table, Existing to Proposed   
------------------------------------------------------------------------
                                                                Proposed
               Service                  Existing DMCS section     DMCS  
                                                                section 
------------------------------------------------------------------------
Address Correction Service...........  SS-1                          911
Business Reply Mail..................  SS-2                          931
Caller Service.......................  SS-3                          921
Certificate of Mailing...............  SS-4                          947
Certified Mail.......................  SS-5                          941
Collect on Delivery Service..........  SS-6                          944
Domestic Postal Money Orders.........  SS-8                          971
Insured Mail.........................  SS-9                          943
Post Office Box Service..............  SS-10                         921
Mailing List Services................  SS-11                         912
On-Site Meter Setting................  SS-12                         933
Parcel Airlift (PAL).................  SS-13                         951
Registered Mail......................  SS-14                         942
Restricted Delivery..................  SS-15                         946
Return Receipts......................  SS-16                         945
Special Handling.....................  SS-18                         952
Stamped Envelopes....................  SS-19                         961
Stamped Cards........................  SS-19A                        962
Merchandise Return...................  SS-20                         932
------------------------------------------------------------------------

    The changes in the DMCS requested by the Postal Service are as 
follows.
    Amend the Domestic Mail Classification Schedule as follows:

Expedited Mail Classification Schedule

110  DEFINITION
    Expedited Mail is mail matter entered as Express Mail [in 
accordance with] under the provisions of this Schedule. Any matter 
eligible for mailing may, at the option of the mailer, be mailed as 
Express Mail. Insurance is either included in Express Mail postage 
or is available for an additional charge, depending on the value and 
nature of the item sent by Express Mail.
120  DESCRIPTION OF SERVICES
121  Same Day Airport Service
    Same Day Airport service is available between designated airport 
mail facilities.
122  Custom Designed Service
122.1  General. Custom Designed service is available between 
designated postal facilities or other designated locations for 
mailable matter tendered [in accordance with] under a service 
agreement between the Postal Service and the mailer. Service under a 
service agreement shall be offered in a manner consistent with 39 
U.S.C. 403(c).
122.2  Service Agreement. A service agreement shall set forth the 
following:
    a. The scheduled place for each shipment tendered for service to 
each specific destination;
    b. Scheduled place for claim, or delivery, at destination for 
each scheduled shipment;
    c. Scheduled time of day for tender at origin and for claim or 
delivery at destination.
122.3  Pickup and Delivery. Pickup at the mailer's premises, and/or 
delivery at an address other than the destination postal facility is 
provided under terms and conditions as [prescribed] specified by the 
Postal Service.
122.4  Commencement of Service Agreement. Service provided pursuant 
to a service agreement shall commence not more than 10 days after 
the signed service agreement is tendered to the Postal Service.
122.5  Termination of Service Agreement
122.51  Termination by Postal Service. Express Mail service provided 
pursuant to a service agreement may be terminated by the Postal 
Service upon 10 days prior written notice to the mailer if:
    a. Service cannot be provided for reasons beyond the control of 
the Postal Service or because of changes in Postal Service 
facilities or operations, or
    b. The mailer fails to adhere to the terms of the service 
agreement or this schedule.
122.52  Termination by Mailers. The mailer may terminate a service 
agreement, for any reason, by notice to the Postal Service.
123  Next Day Service and Second Day Service
123.1  Availability of Services. Next Day and Second Day Services 
are available at designated retail postal facilities to designated 
destination facilities or locations for items tendered by the time 
or times[ prescribed] specified by the Postal Service. Next Day 
Service is available for overnight delivery. Second Day Service is 
available for second day delivery.
123.2  Pickup Service. Pickup service is available for Next Day and 
Second Day Services under terms and conditions as [prescribed] 
specified by the Postal Service. Service shall be offered in a 
manner consistent with 39 U.S.C. 403(c).
130  PHYSICAL LIMITATIONS
    Express Mail may not exceed 70 pounds or 108 inches in length 
and girth combined.
140  POSTAGE AND PREPARATION
    Except as provided in Rate Schedules 121, 122 and 123, postage 
on Express Mail is charged on each piece. For shipments tendered in 
Express Mail pouches under a service agreement, each pouch is a 
piece.
150  DEPOSIT AND DELIVERY
151  Deposit
    Express Mail must be deposited at places designated by the 
Postal Service.
152  Receipt
    A receipt showing the time and date of mailing will be provided 
to the mailer upon acceptance of Express Mail by the Postal Service. 
This receipt serves as evidence of mailing.
153  Service
    Express Mail service provides a high speed, high reliability 
service. Same Day Airport Express Mail will be dispatched on the 
next available transportation to the destination airport mail 
facility. Custom Designed Express Mail will be available for claim 
or delivery as specified in the service agreement.
154  Forwarding and Return
    When Express Mail is returned, or forwarded, as [prescribed] 
specified by the Postal Service, there will be no additional charge.
160  ANCILLARY SERVICES
    The following services may be obtained in conjunction with mail 
sent under this classification schedule upon payment of applicable 
fees:

------------------------------------------------------------------------
                Service                              Schedule           
------------------------------------------------------------------------
a. Address correction..................  911[SS-1]                      
b. Return receipts.....................  945[SS-16]                     
c. COD.................................  944[SS-6]                      
d. Express Mail Insurance..............  943[SS-9]                      
------------------------------------------------------------------------

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

------------------------------------------------------------------------
                            Service                             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
------------------------------------------------------------------------

180  REFUNDS
181  Procedure
    Claims for refunds of postage must be filed within the period of 
time and under terms and conditions [prescribed] specified by the 
Postal Service.
182  Availability
182.1  Same Day Airport. The Postal Service will refund the postage 
for Same Day Airport Express Mail not available for claim by the 
time specified, unless the delay is caused by:
    a. Strikes or work stoppage;
    b. Delay or cancellation of flights; or
    c. Governmental action beyond the control of Postal Service or 
air carriers.
182.2  Custom Designed. Except where a service agreement provides 
for claim, or delivery, of Custom Designed Express Mail more than 24 
hours after scheduled tender at point of origin, the Postal Service 
will refund postage for such mail not available for claim, or not 
delivered, within 24 hours of mailing, unless the item was delayed 
by strike or work stoppage.
182.3  Next Day. Unless the item was delayed by strike or work 
stoppage, the Postal Service will refund postage for Next Day 
Express Mail not available for claim or not delivered:
    a. By 10:00 a.m., or earlier time(s) [prescribed] specified by 
the Postal Service, of the next delivery day in the case of Post 
Office-to-Post Office service;
    b. By 3:00 p.m., or earlier time(s) [prescribed] specified by 
the Postal Service,

[[Page 39664]]

of the next delivery day in the case of Post Office-to-Addressee 
service.
182.4  Second Day. Unless the item was delayed by strike or work 
stoppage, the Postal Service will refund postage for Second Day 
Express Mail not available for claim or not delivered:
    a. By 10:00 a.m., or earlier time(s) [prescribed] specified by 
the Postal Service, of the second delivery day in the case of Post 
Office-to-Post Office service;
    b. By 3:00 p.m., or earlier time(s) [prescribed] specified by 
the Postal Service, of the second delivery day in the case of Post 
Office-to-Addressee service.
190  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

210  DEFINITION
    Any matter eligible for mailing may, at the option of the 
mailer, be mailed as First-Class Mail. The following must be mailed 
as First-Class Mail, unless mailed as Express Mail or exempt under 
title 39, United States Code, or except as authorized under sections 
344.12, 344.23 and 443:
    a. Mail sealed against postal inspection as set forth in section 
5000;
     b. Matter wholly or partially in handwriting or typewriting 
except as specifically permitted by sections 312, 313, 323, 344.22, 
and 446;
    c. Matter having the character of actual and personal 
correspondence except as specifically permitted by sections 312, 
313, 323, 344.22, and 446; and
    d. Bills and statements of account.
220  DESCRIPTION OF SUBCLASSES
221  Letters and Sealed Parcels Subclass
221.1  General. The Letters and Sealed Parcels subclass consists of 
First-Class Mail weighing 11 ounces or less that is not mailed under 
section 222 or 223.
221.2  Regular Rate Categories. The regular rate categories consist 
of Letters and Sealed Parcels subclass mail not mailed under section 
221.3.
221.21  [Single Piece] Single-Piece Rate Category. The single-piece 
rate category applies to regular rate Letters and Sealed Parcels 
subclass mail not mailed under section 221.22[.], 221.23, or 221.24.
221.22  Presort Rate Category. The Presort rate category applies to 
Letters and Sealed Parcels subclass mail that:
    a. Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service; and
    c. Meets the addressing and other preparation requirements 
[prescribed] specified by the Postal Service.
221.23  Prepaid Reply Mail Rate Category. The Prepaid Reply Mail 
category applies to Letters and Sealed Parcels subclass mail that:
    a. Is provided to senders with postage-prepaid by the recipient, 
a Prepaid Reply Mail permit holder, for return by mail to the 
recipient;
    b. Bears the recipient's preprinted machine-readable return 
address, a barcode representing not more than 11 digits (not 
including ``correction'' digits), a Facing Identification Mark, and 
other markings specified and approved by the Postal Service; and
    c. Meets the letter machinability and other preparation 
requirements specified by the Postal Service.
221.24  Qualified Business Reply Mail Rate Category. The Qualified 
Business Reply Mail category applies to Letters and Sealed Parcels 
subclass mail that:
    a. Is provided to senders by the recipient, an advance deposit 
account Business Reply Mail permit holder, for return by mail to the 
recipient;
    b. Bears the recipient's preprinted machine-readable return 
address, a barcode representing not more than 11 digits (not 
including ``correction'' digits), a Facing Identification Mark, and 
other markings specified and approved by the Postal Service; and
    c. Meets the letter machinability and other preparation 
requirements specified by the Postal Service.
221.25  Nonstandard Size Surcharge. Regular rate category Letters 
and Sealed Parcels subclass mail is subject to a surcharge if it is 
nonstandard size mail, as defined in section 232.
[221.25  Presort Discount for Pieces Weighing More Than Two Ounces. 
Presort rate category Letters and Sealed Parcels subclass mail is 
eligible for an additional presort discount on each piece weighing 
more than two ounces.]
221.3  Automation Rate Categories--Letters and Flats
221.31  General. The automation rate categories consist of Letters 
and Sealed Parcels subclass mail weighing 11 ounces or less that:
    a. Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as specified by the 
Postal Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as [prescribed] specified by the 
Postal Service; and
     d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
221.32  Basic Rate Category. The basic rate category applies to 
letter-size automation rate category mail not mailed under section 
221.33, 221.34, or 221.35.
221.33  Three-Digit Rate Category. The three-digit rate category 
applies to letter-size automation rate category mail presorted to 
single or multiple three-digit ZIP Code destinations as [prescribed] 
specified by the Postal Service.
221.34  Five-Digit Rate Category. The five-digit rate category 
applies to letter-size automation rate category mail presorted to 
single or multiple five-digit ZIP Code destinations as [prescribed] 
specified by the Postal Service.
0221.35  Carrier Route Rate Category. The carrier route rate 
category applies to letter-size automation rate category mail 
presorted to carrier routes. It is available only for those carrier 
routes [prescribed] specified by the Postal Service.
221.36   Basic Flats Rate Category. The basic flats rate category 
applies to flat-size automation rate category mail not mailed under 
section 221.37.
221.37  Three- and Five-Digit Flats Rate Category. The three- and 
five-digit flats rate category applies to flat-size automation rate 
category mail presorted to single or multiple three- and five-digit 
ZIP Code destinations as specified by the Postal Service.
221.38  Nonstandard Size Surcharge. Flat-size automation rate 
category pieces are subject to a surcharge if they are nonstandard 
size mail, as defined in section 232.
[221.39  Presort Discount for Pieces Weighing More Than Two Ounces. 
Presorted automation rate category mail is eligible for an 
additional presort discount on each piece weighing more than two 
ounces.]
221.4  Automation Rate Category--Parcels
221.41  Prebarcoded Parcel Rate Category. The prebarcoded parcel 
rate category applies to Letters and Sealed Parcels subclass 
nonpresorted mail that:
    a. Is prepared in a mailing of at least 50 pieces;
    b. Bears a barcode as [prescribed] specified by the Postal 
Service;
    c. Is marked and presented as [prescribed] specified by the 
Postal Service; and
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
    This provision is applicable only to mailings entered for 
processing at no more than six facilities designated by the Postal 
Service. This provision expires April 28, 1998.
221.5   Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Letters and 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.
222  [Stamped Cards and Post Cards] Cards Subclass
222.1  Definition
[222.11  Stamped Card. A Stamped Card is a card with postage 
imprinted or impressed on it and supplied by the Postal Service for 
the transmission of messages.]

[[Page 39665]]

222.1[2]1  [Post CardCards.] The Cards subclass consists of Stamped 
Cards, defined in classification schedule 962, and postcards. A 
[post card] postcard is a privately printed mailing card for the 
transmission of messages. To be eligible to be mailed as a First-
Class [post card] postcard, a card must be of uniform thickness and 
must not exceed any of the following dimensions:
    a. 6 inches in length;
    b. 4\1/4\ inches in width;
    c. 0.016 inch in thickness.
222.1[3]2  Double Cards. Double Stamped Cards or [post cards] 
postcards may be mailed as Stamped Cards or [post cards]postcards. 
[A d]Double Stamped Cards are defined in classification schedule 
962. [or post card] A double postcard consists of two attached 
cards, one of which may be detached by the receiver and returned by 
mail as a single [Stamped Card or] postcard [post card].
222.2  Restriction. A mailpiece with any of the following 
characteristics is not mailable as a Stamped Card or [post card] 
postcard unless it is prepared as [prescribed] specified by the 
Postal Service:
    a. Numbers or letters unrelated to postal purposes appearing in 
the address portion of the card;
    b. Punched holes;
    c. Vertical tearing guide;
    d. An address portion which is smaller than the remainder of the 
card.
222.3  Regular Rate Categories
222.31  Single-Piece Rate Category. The single-piece rate category 
applies to regular rate [Stamped Cards and Post] Cards subclass mail 
not mailed under section 222.32[.], 222.33, or 222.34.
222.32  Presort Rate Category. The presort rate category applies to 
[Stamped Cards and Post] Cards subclass mail that:
    a. Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service; and
    c. Meets the addressing and other preparation requirements 
[prescribed] specified by the Postal Service.
222.33  Prepaid Reply Mail Rate Category. The Prepaid Reply Mail 
category applies to Cards subclass mail that:
    a. Is provided to senders with postage-prepaid by the recipient, 
a Prepaid Reply Mail permit holder, for return by mail to the 
recipient;
    b. Bears the recipient's preprinted machine-readable return 
address, a barcode representing not more than 11 digits (not 
including ``correction'' digits), a Facing Identification Mark, and 
other markings specified and approved by the Postal Service; and
    c. Meets the card machinability and other preparation 
requirements specified by the Postal Service.
0222.34  Qualified Business Reply Mail Rate Category. The Qualified 
Business Reply Mail category applies to Cards subclass mail that:
    a. Is provided to senders by the recipient, an advance deposit 
account Business Reply Mail permit holder, for return by mail to the 
recipient;
    b. Bears the recipient's preprinted machine-readable return 
address, a barcode representing not more than 11 digits (not 
including ``correction'' digits), a Facing Identification Mark, and 
other markings specified and approved by the Postal Service; and
    c. Meets the card machinability and other preparation 
requirements specified by the Postal Service.
222.4  Automation Rate Categories
222.41  General. The automation rate categories consist of [Stamped 
Cards and Post] Cards subclass mail that: a.
    Is prepared in a mailing of at least 500 pieces;
    b. Is presorted, marked, and presented as specified by the 
Postal Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as [prescribed] specified by the 
Postal Service; and
     d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
222.42  Basic Rate Category. The basic rate category applies to 
automation rate category cards not mailed under section 222.43, 
222.44, or 222.45.
222.43  Three-Digit Rate Category. The three-digit rate category 
applies to automation rate category cards presorted to single or 
multiple three-digit ZIP Code destinations as [prescribed] specified 
by the Postal Service.
222.44  Five-Digit Rate Category. The five-digit rate category 
applies to automation rate category cards presorted to single or 
multiple five-digit ZIP Code destinations as [prescribed] specified 
by the Postal Service.
222.45  Carrier Route Rate Category. The carrier route rate category 
applies to automation rate category cards presorted to carrier 
routes. It is available only for those carrier routes [prescribed] 
specified by the Postal Service.
223  Priority Mail
223.1  General. The Priority Mail subclass consists of:
    a. First-Class Mail weighing more than 11 ounces; and
    b. Any mailable matter which, at the option of the mailer, is 
mailed for expeditious mailing and transportation.
223.2  Single-Piece Priority Mail Rate Category. The single-piece 
Priority Mail [priority mail] rate category applies to Priority Mail 
subclass mail not mailed under section 223.[34.]
223.3  [Presorted Priority Mail Rate Category. The presorted 
priority mail Priority Mail rate category applies to Priority Mail 
subclass mail that:
    a. Is prepared in a mailing of at least 300 pieces;]
    b. Is presorted, marked, and presented as prescribed by the 
Postal Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements prescribed by the Postal Service.] [reserved]
223.4  Prebarcoded Priority Mail Parcel Rate Category. The 
prebarcoded Priority Mail Parcel rate category applies to Priority 
Mail [subclass nonpresorted mail] that:
    a. Is prepared in a mailing of at least 50 pieces;
    b. Bears a barcode as [prescribed] specified by the Postal 
Service;
    c. Is marked and presented as [prescribed] specified by the 
Postal Service; and
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
    This provision is applicable only to mailings entered for 
processing at no more than six facilities designated by the Postal 
Service. This provision expires April 28, 1998.
223.5  Flat Rate Envelope. Priority Mail subclass mail sent in a 
``flat rate'' envelope provided by the Postal Service is charged the 
two-pound rate.
223.6  Pickup Service. Pickup service is available for Priority Mail 
subclass mail under terms and conditions [prescribed] specified by 
the Postal Service.
223.7  Bulky Parcels. Priority Mail subclass mail weighing less than 
15 pounds, and measuring over 84 inches in length and girth 
combined, is charged a minimum rate equal to that for a 15-pound 
parcel for the zone to which the piece is addressed.
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.
230  PHYSICAL LIMITATIONS
231  Size and Weight
    First-Class Mail may not exceed 70 pounds or 108 inches in 
length and girth combined. Additional size and weight limitations 
apply to individual First-Class Mail subclasses.
232  Nonstandard Size Mail
    Letters and Sealed Parcels subclass mail weighing one ounce or 
less is nonstandard size if:
    a. Its aspect ratio does not fall between 1 to 1.3 and 1 to 2.5 
inclusive; or
    b. It exceeds any of the following dimensions:
    i. 11.5 inches in length;
    ii. 6.125 inches in width; or
    iii. 0.25 inch in thickness.
240  POSTAGE AND PREPARATION
    Postage on First-Class Mail must be paid as set forth in section 
3000. Postage is computed separately on each piece of mail. Pieces 
not within the same postage rate increment may be mailed at other 
than a single-piece rate as part of the same mailing only when 
specific methods approved by the Postal Service for [ascertaining] 
determining and verifying postage are followed. All mail mailed at 
other than a single-piece rate must have postage paid in a manner 
not requiring cancellation.
250  DEPOSIT AND DELIVERY
251  Deposit

[[Page 39666]]

    First-Class Mail must be deposited at places and times 
designated by the Postal Service.
252  Service
    First-Class Mail receives expeditious handling and 
transportation, except that when First-Class Mail is attached to or 
enclosed with mail of another class, the service of that class 
applies.
253  Forwarding and Return
    First-Class Mail that is undeliverable-as-addressed is forwarded 
or returned to the sender without additional charge.
260  ANCILLARY SERVICES
    First-Class Mail, except as otherwise noted, will receive the 
following additional services upon payment of the fees prescribed in 
the corresponding schedule:

------------------------------------------------------------------------
                Service                              Schedule           
------------------------------------------------------------------------
a. Address correction..................  911 [SS-1]                     
b. Business reply mail.................  931 [SS-2]                     
c. Certificates of mailing.............  947 [SS-4]                     
d. Certified mail......................  941 [SS-5]                     
e. COD.................................  944 [SS-6]                     
f. Insured mail........................  943 [SS-9]                     
g. Registered mail.....................  942 [SS-14]                    
h. Return receipt (limited to            945 [SS-16]                    
 merchandise sent by Priority Mail).                                    
i. Merchandise return..................  932 [SS-20]                    
j. Delivery Confirmation (limited to     948                            
 Priority Mail).                                                        
------------------------------------------------------------------------

270  RATES AND FEES
271  The rates [and fees] for First-Class Mail are set forth in the 
following schedules:

------------------------------------------------------------------------
                Service                              Schedule           
------------------------------------------------------------------------
a. Letters and Sealed Parcels..........  221                            
b. [Stamped Cards and Post] Cards......  222                            
c. Priority Mail.......................  223                            
[d. Fees...............................  SS-19A and 1000]               
------------------------------------------------------------------------

272  Keys and Identification Devices. Keys, identification cards, 
identification tags, or similar identification devices that:
    (a) weigh no more than 2 pounds;
    (b) are mailed without cover; and
    (c) bear, contain, or have securely attached the name and 
address information, as specified by the Postal Service, of a 
person, organization, or concern, with instructions to return to the 
address and a statement guaranteeing the payment of postage due on 
delivery;

are subject to the following rates and fees:
    (a) the applicable single-piece rates in schedules 221 or 223;
    (b) the fee set forth in fee schedule 931 for payment of postage 
due charges if an active business reply mail advance deposit account 
is not used, and
    (c) the nonstandard surcharge, if applicable, under section 232.
280  AUTHORIZATIONS AND LICENSES
    The fee set forth in [Rate] Schedule 1000 must be paid once each 
year at each office of mailing by any person who mails other than 
single-piece First-Class Mail or courtesy envelope mail. Payment of 
the fee allows the mailer to mail at any First-Class rate.

Standard Mail Classification Schedule

310  DEFINITION
311  General
    Any mailable matter may be mailed as Standard Mail except:
    a. Matter required to be mailed as First-Class Mail;
    b. Copies of a publication that is entered as Periodicals class 
mail, except copies sent by a printer to a publisher, and except 
copies that would have traveled at the former second-class transient 
rate. (The transient rate applied to individual copies of second-
class mail (currently Periodicals class mail) forwarded and mailed 
by the public, as well as to certain sample copies mailed by 
publishers.)
312  Printed Matter
    Printed matter, including printed letters which according to 
internal evidence are being sent in identical terms to several 
persons, but which do not have the character of actual or personal 
correspondence, may be mailed as Standard Mail. Printed matter does 
not lose its character as Standard Mail when the date and name of 
the addressee and of the sender are written thereon. For the 
purposes of the Standard Mail Classification Schedule, ``printed'' 
does not include reproduction by handwriting or typewriting.
313  Written Additions
    Standard Mail may have the following written additions placed on 
the wrapper, on a tag or label attached to the outside of the 
parcel, or inside the parcel, either loose or attached to the 
article:
    a. Marks, numbers, name, or letters descriptive of contents;
    b. ``Please Do Not Open Until Christmas,'' or words of similar 
import;
    c. Instructions and directions for the use of an article in the 
package;
    d. Manuscript dedication or inscription not in the nature of 
personal correspondence;
    e. Marks to call attention to any word or passage in text;
    f. Corrections of typographical errors in printed matter;
    g. Manuscripts accompanying related proof sheets, and 
corrections in proof sheets to include: corrections of typographical 
and other errors, alterations of text, insertion of new text, 
marginal instructions to the printer, and rewrites of parts if 
necessary for correction;
    h. Handstamped imprints, except when the added matter is itself 
personal or converts the original matter to a personal 
communication;
    i. An invoice.
320  DESCRIPTION OF SUBCLASSES
321  Subclasses Limited to Mail Weighing Less than 16 Ounces
[321.1  Single Piece Subclass]
[321.11  Definition. The Single Piece subclass consists of Standard 
Mail weighing less than 16 ounces that is not mailed under sections 
321.2, 321.3, 321.4, 321.5 or 323.]
[321.12  Basic Rate Category. The basic rate category applies to 
Single Piece subclass mail not mailed under section 321.13.]
[321.13  Keys and Identification Devices Rate Category. The keys and 
identification devices rate category applies to keys, identification 
cards, identification tags, or similar identification devices mailed 
without cover, and which bear, contain, or have securely attached 
the name and complete address of a person, organization, or concern, 
with instructions to return to such address and a statement 
guaranteeing the payment of postage due on delivery.]
[321.14  Nonstandard Size Surcharge. Single Piece subclass mail, 
other than that mailed under section 321.13, is subject to a 
surcharge if it is nonstandard size mail, as defined in section 
333.]
321.2  Regular Subclass
321.21  General. The Regular subclass consists of Standard Mail 
weighing less than 16 ounces that is not mailed under sections 
[321.1,] 321.3, 321.4, 321.5 or 323.
321.22  Presort Rate Categories
321.221  General. The presort rate categories apply to Regular 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements [prescribed] specified by the Postal Service.
321.222  Basic Rate Categories. The basic rate categories apply to 
presort rate category mail not mailed under section 321.223.
321.223  Three- and Five-Digit Rate Categories. The three- and five-
digit rate categories apply to presort rate category mail presorted 
to single or multiple three- and five-digit ZIP Code destinations as 
[prescribed] specified by the Postal Service.
321.23  Automation Rate Categories
321.231  General. The automation rate categories apply to Regular 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as [prescribed] specified by the 
Postal Service;
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
321.232  Basic Barcoded Rate Category. The basic barcoded rate 
category applies to letter-size automation rate category mail not 
mailed under section 321.233 or 321.234.
321.233  Three-Digit Barcoded Rate Category. The three-digit 
barcoded rate category applies to letter-size automation rate 
category mail presorted to single or multiple three-digit ZIP Code 
destinations as [prescribed] specified by the Postal Service.

[[Page 39667]]

321.234  Five-Digit Barcoded Rate Category. The five-digit barcoded 
rate category applies to letter-size automation rate category mail 
presorted to single or multiple five-digit ZIP Code destinations as 
[prescribed] specified by the Postal Service.
321.235  Basic Barcoded Flats Rate Category. The basic barcoded 
flats rate category applies to flat-size automation rate category 
mail not mailed under section 321.236.
321.236  Three- and Five-Digit Barcoded Flats Rate Category. The 
three- and five-digit barcoded flats rate category applies to flat-
size automation rate category mail presorted to single or multiple 
three- and five-digit ZIP Code destinations as [prescribed] 
specified by the Postal Service.
321.24  Destination Entry Discount. The destination entry discounts 
apply to Regular subclass mail prepared as [prescribed] specified by 
the Postal Service and addressed for delivery within the service 
area of the BMC (or auxiliary service facility), or sectional center 
facility (SCF), at which it is entered, as defined by the Postal 
Service.
321.25  Residual Shape Surcharge. Regular subclass mail is subject 
to a surcharge if it is prepared as a parcel or if it is not letter 
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
321.31  Definition. The Enhanced Carrier Route subclass consists of 
Standard Mail weighing less than 16 ounces that is not mailed under 
section [321.1,] 321.2, 321.4, 321.5 or 323, and that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is prepared, marked, and presented as [prescribed] specified 
by the Postal Service;
    c. Is presorted to carrier routes as [prescribed] specified by 
the Postal Service;
    d. Is sequenced as [prescribed] specified by the Postal Service; 
and
    e. Meets the machinability, addressing, and other preparation 
requirements [prescribed] specified by the Postal Service.
321.32  Basic Rate Category. The basic rate category applies to 
Enhanced Carrier Route subclass mail not mailed under section 
321.33, 321.34 or 321.35.
321.33  Basic Pre-Barcoded Rate Category. The basic pre-barcoded 
rate category applies to letter-size Enhanced Carrier Route subclass 
mail which bears a barcode representing not more than 11 digits (not 
including ``correction'' digits), as specified [prescribed] by the 
Postal Service, and which meets the machinability, addressing, and 
barcoding specifications and other preparation requirements 
[prescribed] specified by the Postal Service.
321.34  High Density Rate Category. The high density rate category 
applies to Enhanced Carrier Route subclass mail presented in walk-
sequence order and meeting the high density requirements 
[prescribed] specified by the Postal Service.
321.35  Saturation Rate Category. The saturation rate category 
applies to Enhanced Carrier Route subclass mail presented in walk-
sequence order and meeting the saturation requirements [prescribed] 
specified by the Postal Service.
321.36  Destination Entry Discounts. Destination entry discounts 
apply to Enhanced Carrier Route subclass mail prepared as 
[prescribed] specified by the Postal Service and addressed for 
delivery within the service area of the BMC (or auxiliary service 
facility), sectional center facility (SCF), or destination delivery 
unit (DDU) at which it is entered, as defined by the Postal Service.
321.37  Residual Shape Surcharge. Enhanced Carrier Route subclass 
mail is subject to a surcharge if it is prepared as a parcel or if 
it is not letter 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
321.41 General.  The Nonprofit subclass consists of Standard Mail 
weighing less than 16 ounces that is not mailed under section 
[321.1,] 321.2, 321.3, 321.5 or 323, and that is mailed by 
authorized nonprofit organizations or associations of the following 
types:
    a. Religious, as defined in section 1009,
    b. Educational, as defined in section 1009,
    c. Scientific, as defined in section 1009,
    d. Philanthropic, as defined in section 1009,
    e. Agricultural, as defined in section 1009,
    f. Labor, as defined in section 1009,
    g. Veterans', as defined in section 1009,
    h. Fraternal, as defined in section 1009,
    i. Qualified political committees,
    j. State or local voting registration officials when making a 
mailing required or authorized by the National Voter Registration 
Act of 1993.
321.411  Qualified Political Committees. The term ``qualified 
political committee'' means a national or State committee of a 
political party, the Republican and Democratic Senatorial Campaign 
Committees, the Democratic National Congressional Committee, and the 
National Republican Congressional Committee:
    a. The term ``national committee'' means the organization which, 
by virtue of the bylaws of a political party, is responsible for the 
day-to-day operation of such political party at the national level; 
and
    b. The term ``State committee'' means the organization which, by 
virtue of the bylaws of a political party, is responsible for the 
day-to-day operation of such political party at the State level.
321.412  Limitation on Authorization. An organization authorized to 
mail at the nonprofit Standard rates for qualified nonprofit 
organizations may mail only its own matter at these rates. An 
organization may not delegate or lend the use of its permit to mail 
at [special] Nonprofit [Standard] rates to any other person, 
organization or association.
321.42  Presort Rate Categories
321.421  General. The presort rate categories apply to Nonprofit 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service; and
    c. Meets the machinability, addressing, and other preparation 
requirements [prescribed] specified by the Postal Service.
321.422  Basic Rate Categories. The basic rate categories apply to 
presort rate category mail not mailed under section 321.423.
321.423  Three- and Five-Digit Rate Categories. The three- and five-
digit rate categories apply to presort rate category mail presorted 
to single or multiple three- and five-digit ZIP Code destinations as 
[prescribed] specified by the Postal Service.
321.43  Automation Rate Categories
321.431  General. The automation rate categories apply to Nonprofit 
subclass mail that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is presorted, marked, and presented as [prescribed] specified 
by the Postal Service;
    c. Bears a barcode representing not more than 11 digits (not 
including ``correction'' digits) as [prescribed] specified by the 
Postal Service;
    d. Meets the machinability, addressing, barcoding, and other 
preparation requirements [prescribed] specified by the Postal 
Service.
321.432  Basic Barcoded Rate Category.The basic barcoded rate 
category applies to letter-size automation rate category mail not 
mailed under section 321.433 or 321.434.
321.433  Three-Digit Barcoded Rate Category. The three-digit 
barcoded rate category applies to letter-size automation rate 
category mail presorted to single or multiple three-digit ZIP Code 
destinations as [prescribed] specified by the Postal Service.
321.434  Five-Digit Barcoded Rate Category. The five-digit barcoded 
rate category applies to letter-size automation rate category mail 
presorted to single or multiple five-digit ZIP Code destinations as 
[prescribed] specified by the Postal Service.

[[Page 39668]]

321.435  Basic Barcoded Flats Rate Category. The basic barcoded 
flats rate category applies to flat-size automation rate category 
mail not mailed under section 321.436.
321.436  Three- and Five-Digit Barcoded Flats Rate Category. The 
three- and five-digit barcoded flats rate category applies to flat-
size automation rate category mail presorted to single or multiple 
three- and five-digit ZIP Code destinations as [prescribed] 
specified by the Postal Service.
321.44  Destination Entry Discounts. Destination entry discounts 
apply to Nonprofit subclass mail prepared as [prescribed] specified 
by the Postal Service and addressed for delivery within the service 
area of the BMC (or auxiliary service facility) or sectional center 
facility (SCF) at which it is entered, as defined by the Postal 
Service.
321.45  Residual Shape Surcharge. Nonprofit subclass mail is subject 
to a surcharge if it is prepared as a parcel or if it is not letter 
or flat shaped.
321.46  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
321.51  Definition. The Nonprofit Enhanced Carrier Route subclass 
consists of Standard Mail weighing less than 16 ounces that is not 
mailed under section [321.1,] 321.2, 321.3, 321.4 or 323, that is 
mailed by authorized nonprofit organizations or associations (as 
defined in section 321.41) under the terms and limitations stated in 
section 321.412, and that:
    a. Is prepared in a mailing of at least 200 addressed pieces or 
50 pounds of addressed pieces;
    b. Is prepared, marked, and presented as [prescribed] specified 
by the Postal Service;
    c. Is presorted to carrier routes as [prescribed] specified by 
the Postal Service;
    d. Is sequenced as [prescribed] specified by the Postal Service; 
and
    e. Meets the machinability, addressing, and other preparation 
requirements [prescribed] specified by the Postal Service.
321.52  Basic Rate Category. The basic rate category applies to 
Nonprofit Enhanced Carrier Route subclass mail not mailed under 
section 321.53, 321.54 or 321.55.
321.53  Basic Pre-Barcoded Rate Category. The basic pre-barcoded 
rate category applies to letter-size Nonprofit Enhanced Carrier 
Route subclass mail which bears a barcode representing not more than 
11 digits (not including ``correction'' digits), as [prescribed] 
specified by the Postal Service, and which meets the machinability, 
addressing, and barcoding specifications and other preparation 
requirements [prescribed] specified by the Postal Service.
321.54  High Density Rate Category. The high density rate category 
applies to Nonprofit Enhanced Carrier Route subclass mail presented 
in walk-sequence order and meeting the high density requirements 
[prescribed] specified by the Postal Service.
321.55  Saturation Rate Category. The saturation rate category 
applies to Nonprofit Enhanced Carrier Route subclass mail presented 
in walk-sequence order and meeting the saturation requirements 
[prescribed] specified by the Postal Service.
321.56  Destination Entry Discounts. Destination entry discounts 
apply to Nonprofit Enhanced Carrier Route subclass mail prepared as 
[prescribed] specified by the Postal Service and addressed for 
delivery within the service area of the BMC (or auxiliary service 
facility), sectional center facility (SCF), or destination delivery 
unit (DDU) at which it is entered, as defined by the Postal Service.
321.57  Residual Shape Surcharge. Nonprofit Enhanced Carrier Route 
subclass mail is subject to a surcharge if it is prepared as a 
parcel or if it is not letter or flat shaped.
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 specified by the Postal 
Service in a mailing of at least 50 pieces entered at a designated 
destination BMC, auxiliary service facility, or other equivalent 
facility, as specified by the Postal Service.
322.124  Destination Sectional Center Facility (DSCF) Rate Category. 
DSCF rates apply to Parcel Post mail prepared as specified by the 
Postal Service in a mailing of at least 50 pieces sorted to five 
digit destination ZIP Codes as specified by the Postal Service and 
entered at a designated destination processing and distribution 
center or facility, or other equivalent facility, as specified by 
the Postal Service.
322.125  Destination Delivery Unit (DDU) Rate Category. DDU rates 
apply to Parcel Post mail prepared as specified by the Postal 
Service in a mailing of at least 50 pieces, and entered at a 
designated destination delivery unit, or other equivalent facility, 
as specified 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  BMC Presort Discount. The BMC presort discount applies to 
Inter-BMC Parcel Post mail that is prepared as specified by the 
Postal Service in a mailing of 50 or more pieces, entered at a 
facility authorized by the Postal Service, and sorted to destination 
BMCs, as specified by the Postal Service.
322.142  Origin Bulk Mail Center (OBMC) Discount. The Origin BMC 
Parcel Post discount applies to Inter-BMC Parcel Post mail that is 
prepared as specified by the Postal Service in a mailing of at least 
50 pieces, entered at the origin BMC, and sorted to destination 
BMCs, as specified 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 specified by the Postal 
Service, is prepared as specified 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  Oversize Parcel Post

[[Page 39669]]

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] specified 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] 
specified 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
322.21  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 or pieces 
measuring over 108 inches in length and girth combined are not 
mailable as bulk parcel post.
322.22  Barcoded Discount. The barcoded discount applies to Bulk 
Parcel Post mail that is entered at designated facilities, bears a 
barcode specified by the Postal Service, is prepared as specified by 
the Postal Service, and meets all other preparation and 
machinability requirements of the Postal Service.
322.23  Hazardous Medical Materials and Other Mailable Hazardous 
Materials Surcharges. Bulk 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.
322.3  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:
    a. Consists of advertising, promotional, directory, or editorial 
material, or any combination thereof;
    b. Is securely bound by permanent fastenings including, but not 
limited to, staples, spiral bindings, glue, and stitching; loose 
leaf binders and similar fastenings are not considered permanent;
    c. Consists of sheets of which at least 90 percent are imprinted 
with letters, characters, figures or images or any combination of 
these, by any process other than handwriting or typewriting;
    d. Does not have the nature of personal correspondence;
    e. Is not stationery, such as pads of blank printed forms.
322.32 Single-Piece Rate Category. The single-piece rate category 
applies to Bound Printed Matter subclass mail which is not mailed 
under section 322.33 or 322.34.
322.33 Bulk Rate Category. The bulk rate category applies to Bound 
Printed Matter subclass mail prepared in a mailing of at least 300 
pieces, prepared and presorted as [prescribed] specified by the 
Postal Service.
322.34 Carrier Route Presort Rate Category. The carrier route rate 
category applies to Bound Printed Matter subclass mail prepared in a 
mailing of at least 300 pieces of carrier route presorted mail, 
prepared and presorted as specified [prescribed] by the Postal 
Service.
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 specified by the Postal 
Service, is prepared as specified 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
323.11 Definition. The Special subclass consists of Standard Mail of 
the following types:
    a. Books, including books issued to supplement other books, of 
at least eight printed pages, consisting wholly of reading matter or 
scholarly bibliography or reading matter with incidental blank 
spaces for notations, and containing no advertising matter other 
than incidental announcements of books. Not more than three of the 
announcements may contain as part of their format a single order 
form, which may also serve as a postcard [post card.] The order 
forms permitted in this subsection are in addition to and not in 
lieu of order forms which may be enclosed by virtue of any other 
provision;
    b. 16 millimeter or narrower width films which must be positive 
prints in final form for viewing, and catalogs of such films, of 24 
pages or more, at least 22 of which are printed, except when sent to 
or from commercial theaters;
    c. Printed music, whether in bound form or in sheet form;
    d. Printed objective test materials and accessories thereto used 
by or in behalf of educational institutions in the testing of 
ability, aptitude, achievement, interests and other mental and 
personal qualities with or without answers, test scores or 
identifying information recorded thereon in writing or by mark;
    e. Sound recordings, including incidental announcements of 
recordings and guides or scripts prepared solely for use with such 
recordings. Not more than three of the announcements permitted in 
this subsection may contain as part of their format a single order 
form, which may also serve as a postcard [post card.] The order 
forms permitted in this subsection are in addition to and not in 
lieu of order forms which may be enclosed by virtue of any other 
provision;
    f. Playscripts and manuscripts for books, periodicals and music;
    g. Printed educational reference charts, permanently processed 
for preservation;
    h. Printed educational reference charts, including but not 
limited to
    i. Mathematical tables,
    ii. Botanical tables,
    iii. Zoological tables, and
    iv. Maps produced primarily for educational reference purposes;
    i. Looseleaf pages and binders therefor, consisting of medical 
information for distribution to doctors, hospitals, medical schools, 
and medical students; and
    j. Computer-readable media containing prerecorded information 
and guides or scripts prepared solely for use with such media.
323.12 Single-Piece Rate Category. The single-piece rate category 
applies to Special subclass mail not mailed under section 323.13 or 
323.14.
323.13 Level A Presort Rate Category. The Level A presort rate 
category applies to mailings of at least 500 pieces of Special 
subclass mail, prepared and presorted to five-digit destination ZIP 
Codes as [prescribed] specified by the Postal Service.
323.14 Level B Presort Rate Category. The Level B presort rate 
category applies to mailing of at least 500 pieces of Special 
subclass mail, prepared and presorted to destination Bulk Mail 
Centers as [prescribed] specified by the Postal Service.
323.15 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 specified by the Postal 
Service, is prepared as specified 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
323.21  Definition.
323.211 General. The Library subclass consists of Standard Mail of 
the following types, separated or presorted as [prescribed] 
specified by the Postal Service:
    a. Matter designated in subsection 323.213, loaned or exchanged 
(including cooperative processing by libraries) between:
    i. Schools or colleges, or universities;
    ii. Public libraries, museums and herbaria, nonprofit religious, 
educational, scientific, philanthropic, agricultural, labor, 
veterans' or fraternal organizations or associations, or between 
such organizations and their members, readers or borrowers.
    b. Matter designated in subsection 323.214, mailed to or from 
schools, colleges, universities, public libraries, museums and

[[Page 39670]]

herbaria and to or from nonprofit religious, educational, 
scientific, philanthropic, agricultural, labor, veterans' or 
fraternal organizations or associations; or
    c. Matter designated in subsection 323.215, mailed from a 
publisher or a distributor to a school, college, university or 
public library.
323.212 Definition of Nonprofit Organizations and Associations. 
Nonprofit organizations or associations are defined in section 1009.
323.213 Library subclass mail under section 323.211a. Matter 
eligible for mailing as Library subclass mail under section 323.211a 
consists of:
    a. Books consisting wholly of reading matter or scholarly 
bibliography or reading matter with incidental blank spaces for 
notations and containing no advertising other than incidental 
announcements of books;
    b. Printed music, whether in bound form or in sheet form;
    c. Bound volumes of academic theses in typewritten or other 
duplicated form;
    d. Periodicals, whether bound or unbound;
    e. Sound recordings;
    f. Other library materials in printed, duplicated or 
photographic form or in the form of unpublished manuscripts; and
    g. Museum materials, specimens, collections, teaching aids, 
printed matter and interpretative materials intended to inform and 
to further the educational work and interest of museums and 
herbaria.
323.214 Library subclass mail under section 323.211b. Matter 
eligible for mailing as Library subclass mail under section 323.211b 
consists of:
    a. 16-millimeter or narrower width films; filmstrips; 
transparencies; slides; microfilms; all of which must be positive 
prints in final form for viewing;
    b. Sound recordings;
    c. Museum materials, specimens, collections, teaching aids, 
printed matter, and interpretative materials intended to inform and 
to further the educational work and interests of museums and 
herbaria;
    d. Scientific or mathematical kits, instruments or other 
devices;
    e. Catalogs of the materials in section 323.214 a through d and 
guides or scripts prepared solely for use with such materials.
323.215 Library subclass mail under section 323.211c. Matter 
eligible for mailing as Library subclass mail under section 323.211c 
consists of books, including books to supplement other books, 
consisting wholly of reading matter or scholarly bibliography or 
reading matter with incidental blank spaces for notations, and 
containing no advertising matter other than incidental announcements 
of books.
323.22 Basic Rate Category. The basic rate category applies to all 
Library subclass mail.
323.23 Barcoded Discount. The barcoded discount applies to Library 
subclass mail that is entered at designated facilities, bears a 
barcode specified by the Postal Service, is prepared as specified 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.
332  Weight
    Standard Mail may not weigh more than 70 pounds. Additional 
weight limitations apply to individual Standard Mail subclasses.
333  Nonstandard Size Mail
    Single-Piece subclass mail weighing one ounce or less is 
nonstandard size if:
    a. Its aspect ratio does not fall between 1 to 1.3 and 1 to 2.5 
inclusive; or
    b. It exceeds any of the following dimensions:
    i. 11.5 inches in length;
    ii. 6.125 inches in width; or
    iii. 0.25 inch in thickness.
340  POSTAGE AND PREPARATION
341  Postage
    Postage must be paid as set forth in section 3000. When the 
postage computed at a [Single Piece,] Regular, Enhanced Carrier 
Route, Nonprofit or Nonprofit Enhanced Carrier Route Standard rate 
is higher than the rate prescribed in any of the Standard subclasses 
listed in 322 or 323 for which the piece also qualifies (or would 
qualify, except for weight), the piece is eligible for the 
applicable lower rate. All mail mailed at a bulk or presort rate 
must have postage paid in a manner not requiring cancellation.
342  Preparation
    All pieces in a Standard mailing must be separately addressed. 
All pieces in a Standard mailing must be identified as [prescribed] 
specified by the Postal Service, and must contain the ZIP Code of 
the addressee when [prescribed] specified by the Postal Service. All 
Standard mailings must be prepared and presented as specified 
[prescribed] by the Postal Service. Two or more Standard mailings 
may be commingled and mailed only when specific methods approved by 
the Postal Service for [ascertaining] determining and verifying 
postage are followed.
343  Non-Identical Pieces
    Pieces not identical in size and weight may be mailed at a bulk 
or presort rate as part of the same mailing only when specific 
methods approved by the Postal Service for [ascertaining] 
determining and verifying postage are followed.
344  Attachments and Enclosures
344.1  [Single Piece,] Regular, Enhanced Carrier Route, Nonprofit 
and Nonprofit Enhanced Carrier Route Subclasses (section 321)
344.11  General. First-Class Mail may be attached to or enclosed in 
Standard books, catalogs, and merchandise entered under section 321. 
The piece must be marked as [prescribed] specified by the Postal 
Service. Except as provided in section 344.12, additional postage 
must be paid for the attachment or enclosure as if it had been 
mailed separately. Otherwise, the entire combined piece is subject 
to the First-Class rate for which it qualifies.
344.12  Incidental First-Class Attachments and Enclosures. First-
Class Mail, as defined in section 210 b through d, may be attached 
to or enclosed with Standard merchandise entered under section 321, 
including books but excluding merchandise samples, with postage paid 
on the combined piece at the applicable Standard rate, if the 
attachment or enclosure is incidental to the piece to which it is 
attached or with which it is enclosed.
344.2  Parcel Post, Bound Printed Matter, Special, and Library 
Subclasses (sections 322 and 323)
344.21  General. First-Class Mail or Standard Mail from any of the 
subclasses listed in section 321 [Single Piece,] Regular, Enhanced 
Carrier Route, Nonprofit or Nonprofit Enhanced Carrier Route) may be 
attached to or enclosed in Standard Mail mailed under sections 322 
and 323. The piece must be marked as [prescribed] specified by the 
Postal Service. Except as provided in sections 344.22 and 344.23, 
additional postage must be paid for the attachment or enclosure as 
if it had been mailed separately. Otherwise, the entire combined 
piece is subject to the First-Class or section 321 Standard rate for 
which it qualifies (unless the rate applicable to the host piece is 
higher), or, if a combined piece with a section 321 Standard Mail 
attachment or enclosure weighs 16 ounces or more, the piece is 
subject to the Parcel Post rate for which it qualifies.
344.22  Specifically Authorized Attachments and Enclosures. Standard 
Mail mailed under sections 322 and 323 may contain enclosures and 
attachments as [prescribed] specified by the Postal Service and as 
described in section 323.11 a and e, with postage paid on the 
combined piece at the Standard rate applicable to the host piece.
344.23  Incidental First-Class Attachments and Enclosures. First-
Class Mail that meets one or more of the definitions in section 210 
b through d, may be attached to or enclosed with Standard Mail 
mailed under section 322 or 323, with postage paid on the combined 
piece at the Standard rate applicable to the host piece, if the 
attachment or enclosure is incidental to the piece to which it is 
attached or with which it is enclosed.

[[Page 39671]]

350  DEPOSIT AND DELIVERY
351  Deposit
    Standard Mail must be deposited at places and times designated 
by the Postal Service.
352  Service
    Standard Mail may receive deferred service.
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] specified by the Postal Service. The applicable First-
Class Mail [Single Piece Standard] rate is charged for each piece 
receiving return only service. Charges for forwarding-and-return 
service are assessed only on those pieces which cannot be forwarded 
and are returned. The charge for those returned pieces is the 
appropriate First-Class Mail [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.
353.2  Parcel Post, Bound Printed Matter, Special, and Library 
Subclasses (sections 322 and 323)
    Undeliverable-as-addressed Standard Mail mailed under sections 
322 and 323 will be forwarded on request of the addressee, returned 
on request of the mailer, or forwarded and returned on request of 
the mailer. Pieces which combine Standard Mail from one of the 
subclasses described in 322 and 323 with First-Class Mail or 
Standard Mail from one of the subclasses described in 321 will be 
forwarded if undeliverable-as-addressed, and returned if 
undeliverable, as specified [prescribed] by the Postal Service. When 
Standard Mail mailed under sections 322 and 323 is forwarded or 
returned from one post office to another, additional charges will be 
based on the applicable [appropriate] [S]single [P]piece Standard 
Mail rate under 322 or 323.
360  ANCILLARY SERVICES
361  All Subclasses
    All Standard Mail will receive the following services upon 
payment of the appropriate fees:

------------------------------------------------------------------------
                Service                              Schedule           
------------------------------------------------------------------------
a. Address correction..................  911 [SS-1]                     
b. Certificates of mailing indicating    947 [SS-4]                     
 that a specified number of pieces have                                 
 been mailed.                                                           
------------------------------------------------------------------------

    Certificates of mailing are not available for Regular, Enhanced 
Carrier Route, Nonprofit and Nonprofit Enhanced Carrier Route 
subclass mail when postage is paid with [by] permit imprint.
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.............  947 [SS-4]                     
b. COD.................................  944 [SS-6]                     
c. Insured mail........................  943 [SS-9]                     
d. Special handling....................  952 [SS-18]                    
e. Return receipt (merchandise only)...  945 [SS-16]                    
f. Merchandise return..................  932 [SS-20]                    
g. Delivery Confirmation...............  948                            
------------------------------------------------------------------------

    Insurance, 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] determining and verifying 
postage are followed.
    370  RATES AND FEES
    The rates and fees for Standard Mail are set forth as follows:

------------------------------------------------------------------------
                Service                              Schedule           
------------------------------------------------------------------------
[a. Single Piece subclass..............  321.1]                         
[b.]a. Regular subclass................  321.2                          
[c.]b. Enhanced Carrier Route subclass.  321.3                          
[d.]c. Nonprofit subclass..............  321.4                          
[e.]d. Nonprofit Enhanced Carrier Route  321.5                          
 subclass.                                                              
[f.]e..................................        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.]f. Bound Printed Matter subclass...                                 
    Single__Piece......................  322.3A                         
    Bulk and Carrier Route.............  322.3B                         
[h.]g. Special subclass................  323.1                          
[i.]h. Library subclass................  323.2                          
[j.]i. Fees............................  1000                           
------------------------------------------------------------------------

380 AUTHORIZATIONS AND LICENSES
381 Regular, Enhanced Carrier Route, Nonprofit and Nonprofit 
Enhanced Carrier Route Subclasses
    A mailing fee as set forth in [Rate] Schedule 1000 must be paid 
once each year by mailers of Regular, Enhanced Carrier Route, 
Nonprofit and Nonprofit Enhanced Carrier Route subclass mail.
382 Special Subclass
    A presort mailing fee as set forth in [Rate] Schedule 1000 must 
be paid once each year at each office of mailing by or for any 
person who mails presorted Special subclass mail. Any person who 
engages a business concern or other individuals to mail presorted 
Special subclass mail must pay the fee.
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.

PERIODICALS CLASSIFICATION SCHEDULE

410 DEFINITION
411 General Requirements
411.1 Definition. A publication may qualify for mailing under the 
Periodicals Classification Schedule if it meets all of the 
requirements in sections 411.2 through 411.5 and the requirements 
for one of the qualification categories in sections 412 through 415. 
Eligibility for specific Periodicals rates is prescribed in section 
420.
411.2 Periodicals. Periodicals class mail is mailable matter 
consisting of newspapers and other periodical publications. The term 
``periodical publications'' includes, but is not limited to:
    a. Any catalog or other course listing including mail 
announcements of legal texts which are part of post-bar admission 
education issued by any institution of higher education or by a 
nonprofit organization engaged in continuing legal education.
    b. Any looseleaf page or report (including any index, 
instruction for filing, table, or sectional identifier which is an 
integral part of such report) which is designed as part of a 
looseleaf reporting service concerning developments in the law or 
public policy.
411.3 Issuance
411.31 Regular Issuance. Periodicals class mail must be regularly 
issued at stated intervals at least four times a year, bear a date 
of issue, and be numbered consecutively.
411.32 Separate Publication. For purposes of determining Periodicals 
rate eligibility, an ``issue'' of a newspaper or other periodical 
shall be deemed to be a separate publication when the following 
conditions exist:
    a. The issue is published at a regular frequency more often than 
once a month either on (1) the same day as another regular issue of 
the same publication; or (2) on a day different from regular issues 
of the same publication, and
    b. More than 10 percent of the total number of copies of the 
issue is distributed on a regular basis to recipients who do not 
subscribe to it or request it, and
    c. The number of copies of the issue distributed to 
nonsubscribers or nonrequesters is more than twice the number of 
copies of any other issue distributed to nonsubscribers or 
nonrequesters on that same day, or, if no other issue that day, any 
other issue distributed during the same period. ``During the same 
period'' shall be defined as the periods of time ensuing between the 
distribution of each of the issues whose eligibility is being 
examined. Such separate publications must independently meet the 
qualifications for Periodicals eligibility.
411.4 Office of Publication. Periodicals class mail must have a 
known office of publication. A known office of publication is a 
public office where business of the publication is transacted during 
the usual business hours. The office must be maintained where the 
publication is authorized original entry.

[[Page 39672]]

411.5 Printed Sheets. Periodicals class mail must be formed of 
printed sheets. It may not be reproduced by stencil, mimeograph, or 
hectograph processes, or reproduced in imitation of typewriting. 
Reproduction by any other printing process is permissible. Any style 
of type may be used.
412 General Publications
412.1 Definition. To qualify as a General Publication, Periodicals 
class mail must meet the requirements in section 411 and in sections 
412.2 through 412.4.
412.2 Dissemination of Information. A General Publication must be 
originated and published for the purpose of disseminating 
information of a public character, or devoted to literature, the 
sciences, art, or some special industry.
412.3 Paid Circulation
412.31 Total Distribution. A General Publication must be designed 
primarily for paid circulation. At least 50 percent or more of the 
copies of the publication must be distributed to persons who have 
paid above a nominal rate.
412.32 List of Subscribers. A General Publication must be 
distributed to a legitimate list of persons who have subscribed by 
paying or promising to pay at a rate above nominal for copies to be 
received during a stated time. Copies mailed to persons who are not 
on a legitimate list of subscribers are nonsubscriber copies.
412.33 Nominal Rates. As used in section 412.31, nominal rate means:
    a. A token subscription price that is so low that it cannot be 
considered a material consideration;
    b. A reduction to the subscriber, under a premium offer or any 
other arrangements, of more than 50 percent of the amount charged at 
the basic annual rate for a subscriber to receive one copy of each 
issue published during the subscription period. The value of a 
premium is considered to be its actual cost to the publishers, the 
recognized retail value, or the represented value, whichever is 
highest.
412.34 Nonsubscriber Copies
412.341 Up to Ten Percent. Nonsubscriber copies, including sample 
and complimentary copies, mailed at any time during the calendar 
year up to and including 10 percent of the total number of copies 
mailed to subscribers during the calendar year are mailable at the 
rates that apply to subscriber copies provided that the 
nonsubscriber copies would have been eligible for those rates if 
mailed to subscribers.
412.342 Over Ten Percent. Nonsubscriber copies, including sample and 
complimentary copies, mailed at any time during the calendar year, 
in excess of 10 percent of the total number of copies mailed to 
subscribers during the calendar year which are presorted and 
commingled with subscriber copies are charged the applicable rates 
for Regular Periodicals. The 10 percent limitation for a publication 
is based on the total number of all copies of that publication 
mailed to subscribers during the calendar year.
412.35 Advertiser's Proof Copies. One complete copy of each issue of 
a General Publication may be mailed to each advertiser in that issue 
as an advertiser's proof copy at the rates that apply to subscriber 
copies, whether the advertiser's proof copy is mailed to the 
advertiser directly or, instead, to an advertising representative or 
agent of the publication. These copies count as subscriber copies.
412.36 Expired Subscriptions. For six months after a subscription 
has expired, copies of a General Publication may be mailed to a 
former subscriber at the rates that apply to copies mailed to 
subscribers, if the publisher has attempted during that six months 
to obtain payment, or a promise to pay, for renewal. These copies do 
not count as subscriber copies.
412.4 Advertising Purposes
    A General Publication may not be designed primarily for 
advertising purposes. A publication is ``designed primarily for 
advertising purposes'' if it:
    a. Has advertising in excess of 75 percent in more than one-half 
of its issues during any 12-month period;
    b. Is owned or controlled by individuals or business concerns 
and conducted as an auxiliary to and essentially for the advancement 
of the main business or calling of those who own or control it;
    c. Consists principally of advertising and editorial write-ups 
of the advertisers;
    d. Consists principally of advertising and has only a token list 
of subscribers, the circulation being mainly free;
    e. Has only a token list of subscribers and prints 
advertisements free for advertisers who pay for copies to be sent to 
a list of persons furnished by the advertisers; or
    f. Is published under a license from individuals or institutions 
and features other businesses of the licensor.
413 Requester Publications
413.1 Definition. A publication which is circulated free or mainly 
free may qualify for Periodicals class as a Requester Publication if 
it meets the requirements in sections 411, and 413.2 through 413.4.
413.2 Minimum Pages. It must contain at least 24 pages.
413.3 Advertising Purposes
413.31  Advertising Percentage. It must devote at least 25 percent 
of its pages to nonadvertising and not more than 75 percent to 
advertisements.
413.32 Ownership and Control. It must not be owned or controlled by 
one or more individuals or business concerns and conducted as an 
auxiliary to and essentially for the advancement of the main 
business or calling of those who own or control it.
413.4 Circulated to Requesters
413.41  List of Requesters. It must have a legitimate list of 
persons who request the publication, and 50 percent or more of the 
copies of the publication must be distributed to persons making such 
requests. Subscription copies paid for or promised to be paid for, 
including those at or below a nominal rate may be included in the 
determination of whether the 50 percent request requirement is met. 
Persons will not be deemed to have requested the publication if 
their request is induced by a premium offer or by receipt of 
material consideration, provided that mere receipt of the 
publication is not material consideration.
413.42 Nonrequester Copies
413.421  Up to Ten Percent. Nonrequester copies, including sample 
and complimentary copies, mailed at any time during the calendar 
year up to and including 10 percent of the total number of copies 
mailed to requesters during the calendar year are mailable at the 
rates that apply to requester copies provided that the nonrequester 
copies would have been eligible for those rates if mailed to 
requesters.
413.422 Over Ten Percent. Nonrequester copies, including sample and 
complimentary copies, mailed at any time during the calendar year, 
in excess of 10 percent of the total number of copies mailed to 
requesters during the calendar year which are presorted and 
commingled with requester copies are charged the applicable rates 
for Regular Periodicals. The 10 percent limitation for a publication 
is based on the total number of all copies of that publication 
mailed to requesters during the calendar year.
413.43 Advertiser's Proof Copies. One complete copy of each issue of 
a Requester Publication may be mailed to each advertiser in that 
issue as an advertiser's proof copy at the rates that apply to 
requester copies, whether the advertiser's proof copy is mailed to 
the advertiser directly or, instead, to an advertising 
representative or agent of the publication. These copies count as 
requester copies.
414 Publications of Institutions and Societies
414.1 Publisher's Own Advertising. Except as provided in section 
414.2, a publication which meets the requirements of sections 411 
and 412.4, and which contains no advertising other than that of the 
publisher, qualifies for Periodicals class as a publication of an 
institution or society if it is:
    a. Published by a regularly incorporated institution of 
learning;
    b. Published by a regularly established state institution of 
learning supported in whole or in part by public taxation;
    c. A bulletin issued by a state board of health or a state 
industrial development agency;
    d. A bulletin issued by a state conservation or fish and game 
agency or department;

[[Page 39673]]

    e. A bulletin issued by a state board or department of public 
charities and corrections;
    f. Published by a public or nonprofit private elementary or 
secondary institution of learning or its administrative or governing 
body;
    g. Program announcements or guides published by an educational 
radio or television agency of a state or political subdivision 
thereof, or by a nonprofit educational radio or television station;
    h. Published by or under the auspices of a benevolent or 
fraternal society or order organized under the lodge system and 
having a bona fide membership of not less than 1,000 persons;
    i. Published by or under the auspices of a trade(s) union;
    j. Published by a strictly professional, literary, historical, 
or scientific society; or,
    k. Published by a church or church organization.
414.2 General Advertising. A publication published by an institution 
or society identified in sections 414.1 h through k, may contain 
advertising of other persons, institutions, or concerns, if the 
following additional conditions are met:
    a. The publication is originated and published to further the 
objectives and purposes of the society;
    b. Circulation is limited to:
    i. Copies mailed to members who pay either as a part of their 
dues or assessment or otherwise, not less than 50 percent of the 
regular subscription price;
    ii. Other actual subscribers; and
    iii. Exchange copies.
    c. The circulation of nonsubscriber copies, including sample and 
complimentary copies, does not exceed 10 percent of the total number 
of copies referred to in 414.2b.
415  Publications of State Departments of Agriculture
    A publication which is issued by a state department of 
agriculture and which meets the requirements of sections 411 
qualifies for Periodicals class as a publication of a state 
department of agriculture if it contains no advertising and is 
published for the purpose of furthering the objects of the 
department.
416  Foreign Publications
    Foreign newspapers and other periodicals of the same general 
character as domestic publications entered as Periodicals class mail 
may be accepted on application of the publishers thereof or their 
agents, for transmission through the mail at the same rates as if 
published in the United States. This section does not authorize the 
transmission through the mail of a publication which violates a 
copyright granted by the United States.
420  DESCRIPTION OF SUBCLASSES
421  Regular Subclass
421.1  Definition. The Regular subclass consists of Periodicals 
class mail that is not mailed under section 423 and that:
    a. Is presorted, marked, and presented as specified [prescribed] 
by the Postal Service; and
    b. Meets machinability, addressing, and other preparation 
requirements [prescribed] specified by the Postal Service.
421.2   Regular Pound Rates
    An unzoned pound rate applies to the nonadvertising portion of 
Regular subclass mail. A zoned pound rate applies to the advertising 
portion and may be reduced by applicable destination entry 
discounts. The pound rate postage is the sum of the nonadvertising 
portion charge and the advertising portion charge.
421.3  Regular Piece Rates
421.31  Basic Rate Category. The basic rate category applies to all 
Regular subclass mail not mailed under section 421.32, [or] 421.33, 
or 421.34.
421.32  Three [-Digit City and Five]-Digit Rate Category. The three 
digit rate category applies [rates for this category apply] to 
Regular subclass mail presorted to [three-digit cities and five-
digit] single or multiple three-digit ZIP Code destinations as 
[prescribed] specified by the Postal Service.
421.33  Five[-]Digit Rate Category. The five-digit rate category 
applies to Regular subclass mail presorted to single or multiple 
five-digit ZIP Code destinations as specified by the Postal Service.
421.34  Carrier Route Rate Category. The carrier route rate category 
applies to Regular subclass mail presorted to carrier routes as 
[prescribed] specified by the Postal Service.
421.4  Regular Subclass Discounts
421.41  Barcoded Letter Discounts. Barcoded letter discounts apply 
to letter size Regular subclass mail mailed under sections 421.31, 
[and] 421.32, and 421.33 which bears a barcode representing not more 
than 11 digits (not including ``correction'' digits) as [prescribed] 
specified by the Postal Service, and which meets the machinability, 
addressing, and barcoding specifications and other preparation 
requirements [prescribed] specified by the Postal Service.
421.42  Barcoded Flats Discounts. Barcoded flats discounts apply to 
flat size Regular subclass mail mailed under sections 421.31 [and] 
421.32, and 421.33 which bear a barcode representing not more than 
11 digits (not including ``correction'' digits) as [prescribed] 
specified by the Postal Service, and meet the flats machinability, 
addressing, and barcoding specifications and other preparation 
requirements specified [prescribed] by the Postal Service.
421.43  High Density Discount. The high density discount applies to 
Regular subclass mail mailed under section [421.33] 421.34, 
presented in walk-sequence order, and meeting the high density and 
preparation requirements specified [prescribed] by the Postal 
Service.
421.44  Saturation Discount. The saturation discount applies to 
Regular subclass mail mailed under section [421.33] 421.34, 
presented in walk-sequence order, and meeting the saturation and 
preparation requirements specified [prescribed] by the Postal 
Service.
421.45 Destination Entry Discounts. Destination entry discounts 
apply to Regular subclass mail which is destined for delivery within 
the service area of the destination sectional center facility (SCF) 
or the destination delivery unit (DDU) in which it is entered, as 
defined by the Postal Service. The DDU discount only applies to 
Carrier Route rate category mail.
421.46 Nonadvertising Discount. The nonadvertising discount applies 
to all Regular subclass mail and is determined by multiplying the 
proportion of nonadvertising content by the discount factor set 
forth in Rate Schedule 421 and subtracting that amount from the 
applicable piece rate.
422  [Reserved]
423  Preferred Rate Periodicals
423.1   Definition. Periodicals class mail, other than publications 
qualifying as Requester Publications, may qualify for Preferred Rate 
Periodicals rates if it meets the applicable requirements for those 
rates in sections 423.2 through 423.5.
423.2  Within County Subclass
423.21   Definition. Within County mail consists of Preferred Rate 
Periodicals class mail mailed in, and addressed for delivery within, 
the county where published and originally entered, from either the 
office of original entry or additional entry. In addition, a Within 
County publication must meet one of the following conditions:
    a. The total paid circulation of the issue is less than 10,000 
copies; or
    b. The number of paid copies of the issue distributed within the 
county of publication is at least one more than one-half [of] the 
total paid circulation of such issue.
423.22  Entry in an Incorporated City. For the purpose of 
determining eligibility for Within County mail, when a publication 
has original entry at an independent incorporated city which is 
situated entirely within a county or which is contiguous to one or 
more counties in the same state, such incorporated city shall be 
considered to be within the county with which it is principally 
contiguous. Where more than one county is involved, the publisher 
will select the principal county.
423.3  Nonprofit Subclass
    Nonprofit mail is Preferred Rate Periodicals class mail entered 
by authorized nonprofit organizations or associations of the 
following types:
    a. Religious, as defined in section 1009,
    b. Educational, as defined in section 1009,
    c. Scientific, as defined in section 1009,
    d. Philanthropic, as defined in section 1009,
    e. Agricultural, as defined in section 1009,
    f. Labor, as defined in section 1009,
    g. Veterans'', as defined in section 1009,
    h. Fraternal, as defined in section 1009, and
    i. Associations of rural electric cooperatives,
    j. One publication, which contains no advertising (except 
advertising of the

[[Page 39674]]

publisher) published by the official highway or development agency 
of a state,
    k. Program announcements or guides published by an educational 
radio or television agency of a state or political subdivision 
thereof or by a nonprofit educational radio or television station.
    l. One conservation publication published by an agency of a 
state which is responsible for management and conservation of the 
fish or wildlife resources of such state.
423.4  Classroom Subclass
    Classroom mail is Preferred Rate Periodicals class mail which 
consists of religious, educational, or scientific publications 
designed specifically for use in school classrooms or religious 
instruction classes.
423.5  Science of Agriculture
    Science of Agriculture mail consists of Preferred Rate 
Periodicals class mail devoted to the science of agriculture if the 
total number of copies of the publication furnished during any 12-
month period to subscribers residing in rural areas amounts to at 
least 70 percent of the total number of copies distributed by any 
means for any purpose.
423.6  Preferred Rate Pound Rates
    For Preferred Rate Periodicals entered under sections 423.3, 
423.4 and 423.5, an unzoned pound rate applies to the nonadvertising 
portion. A zoned pound rate applies to the advertising portion and 
may be reduced by applicable destination entry discounts. The pound 
rate postage is the sum of the nonadvertising portion charge and the 
advertising portion charge. For Preferred Rate Periodicals entered 
under section 423.2, one pound rate applies to the pieces presorted 
to carrier route to be delivered within the delivery area of the 
originating post office, and another pound rate applies to all other 
pieces.
423.7  Preferred Rate Piece Rates
423.71  Basic Rate Category. The basic rate category applies to all 
Preferred Rate Periodicals not mailed under section 423.72, [or] 
423.73, or 423.74.
423.72  Three-[digit City and Five]-Digit Rate Category. The three-
digit rate category applies [rates for this category apply] to 
Preferred Rate Periodicals entered under sections 423.2, 423.3, 
423.4, or 423.5 that are presorted to single or multiple three-digit 
[cities and five-digit] ZIP [c] Code destinations as [prescribed] 
specified by the Postal Service.
423.73  Five [-]Digit Rate Category. The five-digit rate category 
applies to Preferred Rate Periodicals entered under sections 423.2, 
423.3, 423,4, or 423.5 that are presorted to single or multiple 
five-digit ZIP Code destinations as specified by the Postal Service.
423.74   Carrier Route Rate Category. The carrier route rate 
category applies to Preferred Rate Periodicals presorted to carrier 
routes as [prescribed] specified by the Postal Service.
423.8  Preferred Rate Discounts
423.81  Barcoded Letter Discounts. Barcoded letter discounts apply 
to letter size Preferred Rate Periodicals mailed under sections 
423.71, [and] 423.72, and 423.73 which bear a barcode representing 
not more than 11 digits (not including ``correction'' digits) as 
specified [prescribed] by the Postal Service, and which meet the 
machinability, addressing, and barcoding specifications and other 
preparation requirements [prescribed] specified by the Postal 
Service.
423.82  Barcoded Flats Discounts. Barcoded flats discounts apply to 
flat size Preferred Rate Periodicals mailed under sections 423.71, 
[and] 423.72, and 423.73 which bear a barcode representing not more 
than 11 digits (not including ``correction'' digits) as [prescribed] 
specified by the Postal Service, and meet the flats machinability, 
addressing, and barcoding specifications and other preparation 
requirements [prescribed] specified by the Postal Service.
423.83  High Density Discount. The high density discount applies to 
Preferred Rate Periodicals mailed under section [423.73] 423.74, 
presented in walk-sequence order, and meeting the high density and 
preparation requirements [prescribed] specified by the Postal 
Service.
423.84  Saturation Discount. The saturation discount applies to 
Preferred Rate Periodicals mailed under section [423.73] 423.74, 
presented in walk-sequence order, and meeting the saturation and 
preparation requirements [prescribed] specified by the Postal 
Service.
423.85  Destination Entry Discounts. Destination entry discounts 
apply to Preferred Rate Periodicals which are destined for delivery 
within the service area of the destination sectional center facility 
(SCF) or the destination delivery unit (DDU) in which they are 
entered, as defined by the Postal Service. the DDU discount only 
applies to Carrier Route rate category mail; the SCF discount is not 
available for mail entered under section 423.2.
423.86  Nonadvertising Discount. The nonadvertising discount applies 
to Preferred Rate Periodicals entered under sections 423.3, 423.4, 
423.5 and is determined by multiplying the proportion of 
nonadvertising content by the discount factor set forth in Rate 
Schedules 421, 423.3 or 423.4 and subtracting that amount from the 
applicable piece rate.
430  PHYSICAL LIMITATIONS
    There are no maximum size or weight limits for Periodicals class 
mail.
440  POSTAGE AND PREPARATION
441  Postage. Postage must be paid on Periodicals class mail as set 
forth in section 3000.
442  Presortation. Periodicals class mail must be presorted [in 
accordance with] under regulations [prescribed] specified by the 
Postal Service.
443  Attachments and Enclosures
443.1 General.  First-Class Mail or Standard Mail from any of the 
subclasses listed in section 321 [(Single Piece,] Regular, Enhanced 
Carrier Route or Nonprofit) may be attached to or enclosed with 
Periodicals class mail. The piece must be marked as [prescribed] 
specified by the Postal Service. Except as provided in section 
443.2, additional postage must be paid for the attachment or 
enclosure as if it had been mailed separately. Otherwise, the entire 
combined piece is subject to the appropriate First-Class or section 
321 Standard Mail rate for which it qualifies (unless the rate 
applicable to the host piece is higher), or, if a combined piece 
with a section 321 Standard Mail attachment or enclosure weighs 16 
ounces or more, the piece is subject to the Parcel Post rate for 
which it qualifies.
443.2  Incidental First-Class Mail Attachments and Enclosures. 
First-Class Mail that meets one or more of the definitions in 
sections 210 b through d may be attached to or enclosed with 
Periodicals class mail, with postage paid on the combined piece at 
the applicable Periodicals rate, if the attachment or enclosure is 
incidental to the piece to which it is attached or with which it is 
enclosed.
444  Identification
    Periodicals class mail must be identified as required by the 
Postal Service. Nonsubscriber and nonrequester copies, including 
sample and complimentary copies, must be identified as required by 
the Postal Service.
445  Filing of Information
    Information relating to Periodicals class mail must be filed 
with the Postal Service [in accordance with] under 39 U.S.C. 3685.
446  Enclosures and Supplements
    Periodicals class mail may contain enclosures and supplements as 
[prescribed] specified by the Postal Service. An enclosure or 
supplement may not contain writing, printing or sign thereof or 
therein, in addition to the original print, except as authorized by 
the Postal Service, or as authorized under section 443.2.
450  DEPOSIT AND DELIVERY
451  Deposit
    Periodicals class mail must be deposited at places and times 
designated by the Postal Service.
452  Service
    Periodicals class mail is given expeditious handling insofar as 
is practicable.
453  Forwarding and Return
    Undeliverable-as-addressed Periodicals class mail will be 
forwarded or returned to the mailer, as [prescribed] specified by 
the Postal Service. Undeliverable-as-addressed combined First-Class 
and Periodicals class mail pieces will be forwarded or returned, as 
[prescribed] specified by the Postal Service. Additional charges 
when Periodicals class mail is returned will be based on the 
applicable [Standard] First-Class Mail rate.
470  RATES AND FEES
    The rates and fees for Periodicals class mail are set forth as 
follows:

[[Page 39675]]



------------------------------------------------------------------------
                           Service                              Schedule
------------------------------------------------------------------------
a. Regular...................................................      421.0
b. Within County.............................................      423.2
c. Nonprofit.................................................      423.3
d. Classroom.................................................      423.4
e. Science of Agriculture....................................      421.0
f. Fees......................................................     1000.0
------------------------------------------------------------------------

480  AUTHORIZATIONS AND LICENSES
481  Entry Authorizations
    Prior to mailing at Periodicals rates, a publication must be 
authorized for entry as Periodicals class mail by the Postal 
Service. Each authorized publication will be granted one original 
entry authorization at the post office where the office of 
publication is maintained. An authorization for the establishment of 
an account to enter a publication at an additional entry office may 
be granted by the Postal Service upon application by the publisher. 
An application for re-entry must be made whenever the publisher 
proposes to change the publication's title, frequency of issue or 
office of original entry.
482  Preferred Rate Authorization
    Prior to mailing at Nonprofit, Classroom, and Science of 
Agriculture rates, a publication must obtain an additional Postal 
Service entry authorization to mail at those rates.
483  Mailing by Publishers and News Agents
    Periodicals class mail may be mailed only by publishers or 
registered news agents. A news agent is a person or concern engaged 
in selling two or more Periodicals publications published by more 
than one publisher. News agents must register at all post offices at 
which they mail Periodicals class mail.
484 Fees
    Fees for original entry, additional entry, re-entry, and 
registration of a news agent are set forth in [Rate] Schedule 1000.
    Renumber and amend Special Service Classification Schedules SS--1-
6, SS--8-16, and SS--18-20 as follows:

Special Services

910  ADDRESSING
911  ADDRESS CORRECTION SERVICE
911.1  Definition
911.11  Address correction service is a service which provides the 
mailer with a method of obtaining the correct address, if available 
to the Postal Service, of the addressee or the reason for 
nondelivery.
911.2  Description of Service
911.21  Address correction service is available to mailers of 
postage prepaid mail of all classes. Periodicals class mail will 
receive address correction service.
911.22  Address correction service is not available for items 
addressed for delivery by military personnel at any military 
installation.
911.23  Address correction provides the following service to the 
mailer:
    a. If the correct address is known to the Postal Service, the 
mailer is notified of both the old and the correct address.
    b. If the item mailed cannot be delivered, the mailer will be 
notified of the reason for nondelivery.
911.3  Requirements of the Mailer
911.31  Mail, other than Periodicals class mail, sent under this 
classification schedule must bear a request for address correction 
service.
911.4  Fees
911.41  There is no charge for address correction service when the 
correction is provided incidental to the return of the [mail piece] 
mailpiece to the sender.
911.42  A fee, as set forth in [Rate] Fee Schedule [SS-1] 911, is 
charged for all other forms of address correction service.
912  MAILING LIST SERVICES
912.1  Definition
912.11  Mailing list services include:
    a. Correction of mailing lists;
    b. [Change of address] Change-of-address information for 
election boards and registration commissions;
    c. ZIP coding of mailing lists; and
    d. Arrangement of address cards in the sequence of delivery.
912.12  Correction of mailing list service provides current 
information concerning name and address mailing lists or correct 
information concerning occupant mailing lists.
912.13  ZIP coding of mailing lists service is a service identifying 
ZIP [c]Code addresses in areas served by multi-ZIP coded postal 
facilities.
912.2  Description of Service
912.21  Correction of mailing list service is available only to the 
following owners of name and address or occupant mailing lists:
    a. Members of Congress
    b. Federal agencies
    c. State government departments
    d. Municipalities
    e. Religious organizations
    f. Fraternal organizations
    g. Recognized charitable organizations
    h. Concerns or persons who solicit business by mail
921.22  The following corrections will be made to name and address 
lists:
    a. Names to which mail cannot be delivered or forwarded will be 
deleted;
    b. Incorrect house, rural, or post office box numbers will be 
corrected;
    c. When permanent forwarding orders are on file for customers 
who have moved, new addresses including ZIP [c] Codes will be 
furnished;
    d. New names will not be added to the list.
912.23  The following corrections will be made to occupant lists:
    a. Numbers representing incorrect or non-existent street 
addresses will be deleted;
    b. Business or rural route addresses will be distinguished if 
known;
    c. Corrected cards or sheets will be grouped by route;
    d. Street address numbers will not be added or changed.
912.24  Corrected lists will be returned to customers at no 
additional charge.
912.25  Residential change-of-address information is available only 
to election boards or registration commissions for obtaining, if 
known to the Postal Service, the current address of an addressee.
912.26  ZIP coding or mailing list service provides that addresses 
will be sorted to the finest possible ZIP [c] Code sortation.
912.27  Gummed labels, wrappers, envelopes, [or] Stamped Cards, or 
[post cards] postcards indicative of one-time use will not be 
accepted as mailing lists.
912.28  Sequencing of address cards service provides for the removal 
of incorrect addresses, notation of missing addresses and addition 
of missing addresses.
912.3  Requirements of Customer
912.31  A customer desiring correction of a mailing list or 
arrangement of address cards in sequence of carrier delivery must 
submit the list or cards as [prescribed] specified by [regulation] 
the Postal Service.
912.4  Fees
912.41  The fees for mailing list services are set forth in [Rate] 
Fee Schedule[s] 912 [SS-11a, SS-11b, SS-11c and SS-11d.]
920  DELIVERY ALTERNATIVES
921  POST OFFICE BOX AND CALLER SERVICE
921.1  Caller Service
921.11  Definition
921.111  Caller service is a service which permits a customer to 
obtain mail addressed to the customer's box number through a call 
window or loading dock.
921.12  Description of Service
921.121  Caller service uses post office box numbers as the address 
medium but does not actually use a post office box.
921.122  Caller service is not available at certain postal 
facilities.
921.123  Caller service is provided to customers on the basis of 
mail volume received and number of post office boxes used at any one 
facility.
921.124  A customer may reserve a caller number.
921.125  Caller service cannot be used when the sole purpose is, by 
subsequently filing [change of address] change-of-address orders, to 
have mail forwarded or transferred to another address by the Postal 
Service free of charge.
921.13  Fees
921.131  Fees for caller service are set forth in [Rate] Fee 
Schedule 921. [SS-10.]
922.2  Post Office Box Service
922.21  Definition
922.211  Post office box service is a service which provides the 
customer with a private, locked receptacle for the receipt of mail 
during the hours when the lobby of a postal facility is open.
922.22  Description of Service
922.221  The Postal Service may limit the number of post office 
boxes occupied by any one customer.
922.222  A post office [box holder] boxholder may ask the Postal 
Service to deliver to the post office box all mail properly 
addressed to the holder. If the post office box is located at the 
post office indicated on the piece, it will be transferred without 
additional charge, [in accordance with] under existing regulations.

[[Page 39676]]

922.223  Post office box service cannot be used when the sole 
purpose is, by subsequently filing [change of address] change-of-
address orders, to have mail forwarded or transferred to another 
address by the Postal Service free of charge.
922.23  Fees
922.231  Fees for post office box service are set forth in [Rate] 
Fee Schedule 922. [SS-10.]
922.232  In postal facilities primarily serving academic 
institutions or the students of such institutions, fees for post 
office boxes are:

------------------------------------------------------------------------
             Period of box use                           Fee            
------------------------------------------------------------------------
95 days or less...........................  \1/2\ semi-annual fee.      
96 to 140 days............................  \3/4\ semi-annual fee.      
141 to 190 days...........................  Full semi-annual fee.       
191 to 230 days...........................  1\1/4\ semi-annual fee.     
231 to 270 days...........................  1\1/2\ semi-annual fee.     
271 days to full year.....................  Full annual fee.            
------------------------------------------------------------------------

922.233  No refunds will be made for post office box fees paid under 
section 922.32. [10.031.] For purposes of this classification 
schedule [SS-10], the full annual fee is twice the amount of the 
semi-annual fee.
930  PAYMENT ALTERNATIVES
931  BUSINESS REPLY MAIL
931.1  Definitions
931.11  Business reply mail is a service whereby business reply 
cards, envelopes, cartons and labels may be distributed by or for a 
business reply distributor for use by mailers for sending First-
Class Mail without prepayment of postage to an address chosen by the 
distributor. A distributor is the holder of a business reply 
license.
931.12  A business reply mail piece is nonletter-size for purposes 
of Classification Schedule 931 [SS-2] if it meets addressing and 
other preparation requirements, but does not meet the machinability 
requirements [prescribed] specified by the Postal Service for 
mechanized or automated letter sortation.
    This provision expires June 7, 1999.
931.2  Description of Service
931.21  The distributor guarantees payment on delivery of postage 
and fees for all returned business reply mail. Any distributor of 
business reply cards, envelopes, cartons and labels under any one 
license for return to several addresses guarantees to pay postage 
and fees on any returns refused by any such addressee.
931.3  Requirements of the Mailer
931.31  Business reply cards, envelopes, cartons and labels must be 
preaddressed and bear business reply markings.
931.32  Handwriting, typewriting or handstamping are not acceptable 
methods of preaddressing or marking business reply cards, envelopes, 
cartons, or labels.
931.4  Fees
931.41  The fees for business reply mail are set forth in [Rate] Fee 
Schedule 931 [SS-2.]
931.42  To qualify as an active business reply mail advance deposit 
trust account, the account must be used solely for business reply 
mail and contain sufficient postage and fees due for returned 
business reply mail.
931.43  An accounting fee as set forth in [Rate] Fee Schedule 931 
[SS-2] must be paid each year for each advance deposit business 
reply account at each facility where the mail is to be returned.
931.5  Experimental Reverse Manifest Fees
931.51  A set-up/qualification fee as set forth in [Rate] Fee 
Schedule 931 [SS-2] must be paid by each business reply mail advance 
deposit trust account holder at each destination postal facility at 
which it applies to receive nonletter-size business reply mail for 
which the postage and fees will be accounted for through a reverse 
manifest method approved by the Postal Service for [ascertaining] 
determining and verifying postage.
    A distributor must pay this fee for each business reply mail 
advance deposit trust account for which participation in the 
nonletter-size business reply mail experiment is requested.
    This provision expires June 7, 1999.
931.52  A nonletter-size reverse manifest monthly fee as set forth 
in [Rate] Fee Schedule 931 [SS-2] must be paid each month during 
which the distributor's reverse manifest account is active.
    This fee applies to the (no more than) 10 advance deposit 
account holders which are selected by the Postal Service to 
participate in the reverse manifest nonletter-size business reply 
mail experiment and which utilize reverse manifest accounting 
methods approved by the Postal Service for [ascertaining] 
determining and verifying postage and fees.
    This provision expires June 7, 1999.
931.6  Experimental Weight Averaging Fees
931.61  A set-up/qualification fee as set forth in [Rate] Fee 
Schedule 931 [SS-2] must be paid by each business reply mail advance 
deposit trust account holder at each destination postal facility at 
which it applies to receive nonletter-size business reply mail for 
which the postage and fees will be accounted for through a weight 
averaging method approved by the Postal Service for [ascertaining] 
determining and verifying postage.
    A distributor must pay this fee for each business reply mail 
advance deposit trust account for which participation in the 
nonletter-size business reply mail experiment is requested.
    This provision expires June 7, 1999.
931.62  A nonletter-size weight averaging monthly fee as set forth 
in [Rate] Fee Schedule 931 [SS-2] must be paid each month during 
which the distributor's weight averaging account is active.
    This fee applies to the (no more than) 10 advance deposit 
account holders which are selected by the Postal Service to 
participate in the weight averaging nonletter-size business reply 
mail experiment.
    This provision expires June 7, 1999.
931.7  Authorizations and Licenses
931.71  In order to distribute business reply cards, envelopes, 
cartons or labels, the distributor must obtain a license or licenses 
from the Postal Service and pay the appropriate fee as set forth in 
[Rate] Fee Schedule 931 [SS-2].
931.72  Except as provided in section 931.73 [2.0502], the license 
to distribute business reply cards, envelopes, cartons, or labels 
must be obtained at each office from which the mail is offered for 
delivery.
931.73  If the business reply mail is to be distributed from a 
central office to be returned to branches or dealers in other 
cities, one license obtained from the post office where the central 
office is located may be used to cover all business reply mail.
931.74  The license to mail business reply mail may be canceled for 
failure to pay business reply postage and fees when due, and for 
distributing business reply cards or envelopes [which] that do not 
conform to prescribed form, style or size.
931.75  Authorization to pay experimental nonletter-size business 
reply mail fees as set forth in [Rate] Fee Schedule 931. [SS-2] may 
be canceled for failure of a business reply mail advance deposit 
trust account holder to meet the standards [prescribed] specified by 
the Postal Service for the applicable reverse manifest or weight 
averaging accounting method.
    This provision expires June 7, 1999.
932  MERCHANDISE RETURN SERVICE
932.1  Definition
932.11  Merchandise return service provides a method whereby a 
shipper may authorize its customers to return a parcel with the 
postage paid by the shipper. A shipper is the holder of a 
merchandise return permit.
932.2  Description of Service
932.21  Merchandise return service is available to all shippers who 
obtain the necessary permit and who guarantee payment of postage and 
fees for all returned parcels.
932.22  Merchandise return service is available for the return of 
any parcel under the following classification schedules.
    a. First-Class Mail
    b. Standard Mail
932.3  Requirements of the Mailer
932.31  Merchandise return labels must be prepared at the shipper's 
expense to specifications set forth by the Postal Service.
932.32  The shipper must furnish its customer with an appropriate 
merchandise return label.
932.4  Other Services
932.41  The following services may be purchased in conjunction with 
Merchandise Return Service:

------------------------------------------------------------------------
        Classification schedule                                         
------------------------------------------------------------------------
a. Certificate of mailing..............  947 [SS-4]                     
b. Insured mail........................  943 [SS-9]                     
c. Registered mail.....................  942 [SS-14]                    
d. Special handling....................  952 [SS-18]                    
------------------------------------------------------------------------


[[Page 39677]]

932.42  Only the shipper may purchase insurance service for the 
merchandise return parcel by indicating the amount of insurance on 
the merchandise return label before providing it to the customer. 
The customer who returns a parcel to the shipper under merchandise 
return service may not purchase insurance.
932.5  Fees
932.51  The fee for the merchandise return service is set forth in 
[Rate] Fee Schedule 932. [SS-20]. This fee is paid by the shipper.
932.6  Authorizations and Licenses
932.61  A permit fee as set forth in [Rate] Schedule 1000 must be 
paid once each calendar year by shippers utilizing merchandise 
return service.
932.62  The merchandise return permit may be canceled for failure to 
maintain sufficient funds in a trust account to cover postage and 
fees on returned parcels or for distributing merchandise return 
labels that do not conform to Postal Service specifications.
933  ON-SITE METER SETTING
933.1  Definition
933.11  On-site meter setting or examination service is a service 
whereby the Postal Service will service a postage meter at the 
mailer's or meter manufacturer's premises.
933.2  Description of Service
933.21  On-site meter setting or examination service is available on 
a scheduled basis, and meter setting may be [done] performed on an 
emergency basis for those customers enrolled in the scheduled on-
site meter setting or examination program.
933.3  Fees
933.31  The fees for on-site meter setting or examination service 
are set forth in [Rate] Fee Schedule 933 [SS-12].
934  PREPAID REPLY MAIL
934.1  Definition
934.11  Prepaid reply mail is a service whereby letter-size reply 
cards and envelopes may be distributed by or for a prepaid reply 
mail distributor for use by mailers for sending First-Class Mail 
reply letters or cards on which postage is prepaid by the 
distributor. A distributor is the holder of a prepaid reply mail 
license.
934.2  Description of Service
    When paying postage on outgoing mail pieces which contain reply 
cards and letters to be returned by mail under the terms of this 
section, the distributor simultaneously pays postage on reply cards 
and letters anticipated in response to those outgoing pieces.
934.3  Requirements of the Mailer
934.31  Prepaid reply cards and envelopes must be preaddressed and 
bear prepaid reply mail markings.
934.32  Handwriting, typewriting, or other handstamping are not 
acceptable methods of preaddressing or marking prepaid reply cards 
and envelopes.
934.4  Fees 
934.41  To qualify as an active prepaid reply mail account, the 
account must be used solely for prepaid reply mail and contain a 
balance sufficient to cover postage for returned prepaid reply mail.
934.42  A monthly accounting fee as set forth in Fee Schedule 934 
must be paid each month for each prepaid reply mail account at each 
facility where the mail is returned.
934.5  Authorizations and Licenses
934.51  In order to distribute prepaid reply mail cards and 
envelopes, the distributor must obtain a license or licenses from 
the Postal Service and pay an annual permit fee as set forth in Fee 
Schedule 934.
934.52  Except as provided in section 934.53, the license to 
distribute prepaid reply mail cards and envelopes must be obtained 
at each office from which the mail is offered for delivery.
934.53  If the prepaid reply mail is to be distributed from a 
central office to be returned to branches or dealers in other 
cities, one license obtained from the post office where the central 
office is located may be used to cover all prepaid reply mail.
934.54  The license to mail prepaid reply mail may be canceled for 
failure to pay prepaid reply mail postage and monthly fees when due, 
and for distributing business reply cards and envelopes which do not 
conform to prescribed form, style, size, or thickness.
940 ACCOUNTABILITY & RECEIPTS
941  CERTIFIED MAIL
941.1  Definition
941.11  Certified mail service is a service that provides a mailing 
receipt to the sender and a record of delivery at the office of 
delivery[address].
941.2  Description of Service
941.21  Certified mail service is provided for matter mailed as 
First-Class Mail.
941.22  If requested by the mailer, the time of acceptance[s] by the 
Postal Service will be indicated on the receipt.
941.23  A record of delivery is retained at the office of delivery 
for a specified period of time.
941.24  If the initial attempt to delivery mail is not successful, a 
notice of [arrival] attempted delivery is left at the mailing 
address.
941.25  A receipt of mailing may be obtained only if the article is 
mailed at a post office, branch or station, or given to a rural 
carrier.
941.26  Additional copies of the original mailing receipt may be 
obtained by the mailer.
941.3  Deposit of Mail
941.31  Certified mail must be deposited in a manner specified by 
the Postal Service.
941.4  Other Services
941.41  The following services may be obtained in conjunction with 
mail sent under this classification schedule upon payment of the 
applicable fees:

                                                                        
------------------------------------------------------------------------
                    Service                      Classification schedule
------------------------------------------------------------------------
a. Restricted delivery.........................              946 [SS-15]
b. Return receipt..............................              945 [SS-16]
------------------------------------------------------------------------

941.5  Fees
941.51  The fees for certified mail service are set forth in [Rate] 
Fee Schedule 941. [SS-5.]
942  REGISTERED MAIL
942.1  Definition
942.11  Registered mail is a service that [which] provides added 
protection to mail sent under the[is] Domestic Mail Classification 
Schedule[ ]and indemnity in case of loss or damage.
942.2  Description of Service
942.21  Registered mail service is available to mailers of prepaid 
mail sent as First-Class Mail except that registered mail must meet 
the minimum requirements for length and width regardless of 
thickness.
942.22  Registered mail service provides insurance up to a maximum 
of $25,000, depending upon the actual value at the time of mailing, 
except that insurance is not available for articles of no value. 
[optional for articles valued $100 or less.]
942.23  There is no limit on the value of articles sent under this 
classification schedule.
942.24  Registered mail service is not available for:
    a. All delivery points because of the high security required for 
registered mail; in addition, not all delivery points will be 
available for registry and liability is limited in some geographic 
areas[.];
    b. Mail of any class sent in combination with First-Class Mail;
    c. Two or more articles tied or fastened together, unless the 
envelopes are enclosed in the same envelope or container.
942.25  The following services are provided as part of registered 
mail service at no additional cost to the mailer:
    a. A receipt;
    b. A record of delivery, retained by the Postal Service for a 
specified period of time;
    c. A notice of arrival will be left at the mailing address if 
the initial delivery attempt is unsuccessful;
    d. When registered mail is undeliverable-as-addressed and cannot 
be forwarded, a notice of nondelivery is provided.
942.26  A claim for complete loss of insured articles may be filed 
by the mailer only. A claim for damage or for partial loss of 
insured articles may be filed by either the mailer or addressee.
942.27  Indemnity claims for registered mail [on which insurance is 
provided, or for articles valued $100 or less on which optional 
insurance has been elected], must be filed within a [specified] 
period of time, specified by the Postal Service, from the date the 
article was mailed.
[942.28 No indemnity is paid on any matter registered free.]
942.3  Deposit of Mail
942.31  Registered mail must be deposited in a manner specified by 
the Postal Service.
942.4  Service
942.41  Registered mail is provided maximum security.
942.5  Forwarding and Return

[[Page 39678]]

942.51  Registered mail is forwarded and returned without additional 
registry charge.
942.6  Other Services
942.61  The following services may be obtained in conjunction with 
mail sent under this classification schedule upon payment of 
applicable fees:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Collect on delivery.................  944  [SS-6]                    
b. Restricted delivery.................  946  [SS-15]                   
c. Return receipt......................  945  [SS-16]                   
d. Merchandise return (shippers only)..  932  [SS-20]                   
------------------------------------------------------------------------

942.7  Fees
942.71  The fees for registered mail are set forth in [Rate] Fee 
Schedule 942. [SS-14.]
943  INSURANCE
943.1  Express Mail Insurance
943.11  Definition
943.111  Express Mail Insurance is a service that provides the 
mailer with indemnity for loss of, rifling of, or damage to items 
sent by Express Mail.
943.12  Description of Service
943.121  Express Mail Insurance is available only for Express Mail.
943.122  Insurance coverage is provided, for no additional charge, 
up to $500 per piece for document reconstruction, up to $5,000 per 
occurrence regardless of the number of claimants. Insurance coverage 
is also provided, for no additional charge, up to $500 per piece for 
merchandise. Insurance coverage for merchandise valued at more than 
$500 is available for an additional fee, as set forth in [Rate] Fee 
Schedule 943 [SS-9]. The maximum liability for merchandise is $5,000 
per piece. For negotiable items, currency, or bullion, the maximum 
liability is $15.
943.123  Indemnity claims for Express Mail must be filed within a 
specified period of time from the date the article was mailed.
943.124  Indemnity will be paid under terms and conditions 
[prescribed] specified by the Postal Service.
943.125  Among other limitations [prescribed] specified by the 
Postal Service, indemnity will not be paid by the Postal Service for 
loss, damage or rifling:
    a. Of nonmailable matter;
    b. Due to improper packaging;
    c. Due to seizure by any agency of government; or,
    d. Due to war, insurrection or civil disturbances.
943.13  Fees
943.131  The fees for Express Mail Insurance service are set forth 
in [Rate] Fee Schedule 943.[SS-9.]
943.2  General Insurance
943.21  Retail Insurance
943.211  [General] Retail Insurance is a service that provides the 
mailer with indemnity for loss of, rifling of, or damage to mailed 
items.
943.212  The maximum liability of the Postal Service [under this 
part] for Retail Insurance is $5000.
943.213  [General] Retail Insurance is available for mail sent under 
the following classification schedules:
    a. First-Class Mail, if containing matter [which] that may be 
mailed as Standard Mail
    b. [Single Piece,] Parcel Post, Bound Printed Matter, Special, 
and Library Standard Mail
943.214  [This service] Retail Insurance is not available for matter 
offered for sale, addressed to prospective purchasers who have not 
ordered or authorized their sending. If such matter is received in 
the mail, payment will not be made for loss, rifling, or damage.
943.215  For Retail Insurance, the [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.
943.216  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.
943.217  Retail insurance provides indemnity for the actual value of 
the article at the time of mailing.
943.22  Bulk Insurance
943.221  Bulk insurance service is available for mail entered in 
bulk at designated facilities and in a manner specified 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
943.222  Bulk insurance bears endorsements and identifiers specified 
by the Postal Service. Bulk insurance mailers must meet the 
documentation requirements of the Postal Service.
943.223  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.
943.23  Claims
943.231  For Retail Insurance, a [A] claim for complete loss may be 
filed by the mailer only,[.] and a [A] claim for damage or for 
partial loss may be filed by either the mailer or addressee. For 
bulk insurance, all claims must be filed by the mailer.
943.232  A claim for damage or loss on a parcel sent merchandise 
return under classification schedule 932 [(SS-20)] may only be filed 
by the purchaser of the insurance.
943.233  Indemnity claims must be filed within a specified period of 
time from the date the article was mailed.
[943.234  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.]
943.24  Deposit of Mail
943.241  Retail and Bulk Insured Mail [insured under this part] must 
be deposited [in a manner] as specified by the Postal Service.
943.25  Forwarding and Return
943.251  By insuring an item, the mailer guarantees forwarding and 
return postage unless instructions on the piece mailed indicate that 
it not be forwarded or returned.
943.252  Mail undeliverable as addressed sent under this part will 
be returned to the sender as specified by the sender or by the 
Postal Service.
943.26  Other Services
943.261  The following services, if applicable to the subclass of 
mail, may be obtained in conjunction with mail sent under this part 
upon payment of the applicable fees:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Parcel Airlift 9....................  51 [SS-13]                     
   b. Restricted delivery (for items     946 [SS-15]                    
       insured for more than $50)                                       
  c. Return receipt (for items insured   945 [SS-16]                    
           for more than $50)                                           
d. Special handling....................  952 [SS-18]                    
e. Merchandise return (shippers only)..  932 [SS-20]                    
------------------------------------------------------------------------

943.27  Fees
943.271  The fees for [General] Insurance are set forth in [Rate] 
Fee Schedule 943. [SS-9.]
944  COLLECT ON DELIVERY
944.1  Definition
944.11  Collect on Delivery (COD) service is a service [which] that 
allows a mailer to mail an article for which [he has not been paid] 
full or partial payment has not yet been received and have the 
price, the cost of postage and fees, and anticipated or past due 
charges collected by the Postal Service from the addressee when the 
article is delivered.
944.2  Description of Service
944.21  COD service is available for collection of $600 or less upon 
the delivery of postage prepaid mail sent under the following 
classification schedules:
    a. Express Mail
    b. First-Class Mail
    c. [Single Piece,] Parcel Post, Bound Printed Matter, Special, 
and Library Standard Mail
944.22  Service under this schedule is not available for:
    a. Collection agency purposes;
    b. Return of merchandise about which some dissatisfaction has 
arisen, unless the new addressee has consented in advance to such 
return;
    c. Sending only bills or statements of indebtedness, even though 
the sender may establish that the addressee has agreed to collection 
in this manner; however, when the legitimate COD shipment consisting 
of merchandise or bill of lading, is being mailed, the balance due 
on a past or anticipated transaction may be included in the charges 
on a COD article, provided the addressee has consented in advance to 
such action;

[[Page 39679]]

    d. Parcels containing moving-picture films mailed by exhibitors 
to moving-picture manufacturers, distributors, or exchanges;
    e. Goods that [which] have not been ordered by the addressee.
944.23  COD service provides the mailer with insurance against loss, 
rifling and damage to the article as well as failure to receive the 
amount collected from the addressee. This provision insures only the 
receipt of the instrument issued to the mailer after payment of COD 
charges, and is not to be construed to make the Postal Service 
liable upon any such instrument other than a Postal Service money 
order.
944.24  A receipt is issued to the mailer for each piece of COD 
mail. Additional copies of the original mailing receipt may be 
obtained by the mailer.
944.25  Delivery of COD mail will be made in a manner specified by 
the Postal Service. If a delivery to the mailing address is not 
attempted or if a delivery attempt is unsuccessful, a notice of 
arrival will be left at the mailing address.
944.26  The mailer may receive a notice of nondelivery if the piece 
mailed is endorsed appropriately.
944.27  The mailer may designate a new addressee or alter the COD 
charges by submitting the appropriate form and by paying the 
appropriate fee as set forth in [Rate] Fee Schedule 944. [SS-6.]
944.28  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.
944.29  COD indemnity claims must be filed within a specified period 
of time from the date the article was mailed.
944.3  Requirements of the Mailer
944.31  COD mail must be identified as COD mail.
944.4  Deposit of Mail
944.41  COD mail must be deposited in a manner specified by the 
Postal Service.
944.5  Forwarding and Return
944.51  A mailer of COD mail guarantees to pay any return postage, 
unless otherwise specified on the piece mailed.
944.52  For COD mail sent as Standard Mail, postage at the 
applicable rate will be charged to the addressee:
    a. When an addressee, entitled to delivery to the mailing 
address under Postal Service regulations, requests delivery of COD 
mail [which] that was refused when first offered for delivery;
    b. For each delivery attempt, to an addressee entitled to 
delivery to the mailing address under Postal Service regulations, 
after the second such attempt.
944.6  Other Services
944.61  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:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Registered mail, if sent as First-    942 [SS-14]                    
 Class.                                                                 
b. Restricted delivery.................  946 [SS-15]                    
c. Special handling....................  952 [SS-18]                    
------------------------------------------------------------------------

944.7  Fees
944.71  Fees for COD service are set forth in [Rate] Fee Schedule 
944 [SS-6.]
945  RETURN RECEIPT
945.1  Definition
945.11  Return receipt service is a service that [which] provides 
evidence to the mailer that an article has been received at the 
delivery address.
945.2  Description of Service
945.21  Return receipt service is available for mail sent under the 
following classification schedules:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Certified mail......................  941 [SS-5]                     
b. COD mail............................  944 [SS-6]                     
c. Insured mail (if insured for more     943 [SS-9]                     
 than $50).                                                             
d. Registered mail.....................  942 [SS-14]                    
e. Delivery Confirmation...............  948                            
[e.] f. Express Mail                                                    
[f.] g. Priority Mail (merchandise                                      
 only)                                                                  
[g.] h. Standard Mail (limited to                                       
 merchandise sent by [Single Piece,]                                    
 Parcel Post, Bound Printed Matter,                                     
 Special, and Library Subclasses)                                       
------------------------------------------------------------------------

945.22  Return receipt service is available at the time of mailing 
or, when purchased in conjunction with certified mail, COD, insured 
mail (if for more than $50), registered mail, or Express Mail, after 
mailing.
945.23  Mailers requesting return receipt service at the time of 
mailing will be provided, as appropriate, the signature of the 
addressee or addressee's agent, the date delivered, and the address 
of delivery, if different from the address on the mailpiece.
945.24  Mailers requesting return receipt service after mailing will 
be provided the date of delivery and the name of the person who 
signed for the article.
945.25  If the mailer does not receive a return receipt within a 
specified period of time from the date of mailing, the mailer may 
request a duplicate return receipt. No fee is charged for a 
duplicate return receipt.
945.3  Fees
945.31  The fees for return receipt service are set forth in [Rate] 
Fee Schedule 945 [SS-16.]
946  RESTRICTED DELIVERY
946.1  Definition
946.11  Restricted delivery service is a service that provides a 
means by which a mailer may direct that delivery will be made only 
to the addressee or to someone authorized by the addressee to 
receive such mail.
946.2  Description of Service
946.21  This service is available for mail sent under the following 
classification schedules:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Certified Mail......................  941 [SS-5]                     
b. COD Mail............................  944 [SS-6]                     
c. Insured Mail (if insured for more     943 [SS-9]                     
 than $50).                                                             
d. Registered Mail.....................  942 [SS-14]                    
------------------------------------------------------------------------

946.22  Restricted delivery is available to the mailer at the time 
of mailing or after mailing.
946.23  Restricted delivery service is available only to natural 
persons specified by name.
946.24  A record of delivery will be retained by the Postal Service 
for a specified period of time.
946.25  Failure to provide restricted delivery service when 
requested after mailing, due to prior delivery, is not grounds for 
refund of the fee or communications charges.
946.3  Fees
946.31  The fees for restricted delivery service are set forth in 
[Rate] Fee Schedule 946 [SS-15.]
947  CERTIFICATE OF MAILING
947.1  Definition
947.11  Certificate of mailing service is a service [which] that 
furnishes evidence of mailing.
947.2  Description of Service
947.21  Certificate of mailing service is available to mailers of 
matter sent under the classification schedule to any class of mail.
947.22  A receipt is not obtained upon delivery of the mail to the 
addressee. No record of mailing is maintained at the post office.
947.23  Additional copies of certificates of mailing may be obtained 
by the mailer.
947.3  Other Services
947.31  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:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Parcel airlift......................  951 [SS-13]                    
b. Special handling....................  952 [SS-18]                    
------------------------------------------------------------------------

947.4  Fees
947.41  The fees for certificate of mailing service are set forth in 
[Rate] Fee Schedule 947 [SS-4.]
948  DELIVERY CONFIRMATION
948.1  Definition
948.11  Delivery confirmation service provides confirmation to the 
mailer that an article was delivered or that a delivery attempt was 
made.
948.2  Description of Service
948.21  Delivery confirmation service is available for Priority 
Mail, Parcel Post, Bound Printed Matter, Special Standard Mail, and 
Library Mail.

[[Page 39680]]

948.22  Delivery confirmation service may be requested at the time 
of mailing only.
948.23  Mail for which delivery confirmation service is requested 
must meet any preparation requirements established by the Postal 
Service, and bear a barcode specified by the Postal Service.
948.24  Matter for which delivery confirmation service is requested 
must be deposited in a manner specified by the Postal Service.
948.3  Fees
948.31  Delivery confirmation service is subject to the fees set 
forth in Fee Schedule 948.
950  PARCEL HANDLING
951  PARCEL AIRLIFT (PAL)
951.1  Definition
951.11  Parcel airlift service is a service that provides for air 
transportation of parcels on a space available basis to or from 
military post offices outside the contiguous 48 states.
951.2  Description of Service
951.21  Parcel airlift service is available for mail sent under the 
following classification schedule:
    Standard Mail
951.3  Physical Limitations
951.31  The minimum physical limitations established for the mail 
sent under the classification schedule for which postage is paid 
apply to parcel airlift mail. In no instance may the parcel exceed 
30 pounds in weight, or 60 inches in length and girth combined.
951.4  Requirements of the Mailer
951.41  Mail sent under this schedule must be endorsed as 
[prescribed] specified by [regulation] the Postal Service.
951.5  Deposit of Mail
951.51  PAL mail must be deposited in a manner specified by the 
Postal Service
951.6  Forwarding and Return
951.61  PAL mail sent for delivery outside the contiguous 48 states 
is forwarded as set forth in section 2030 of the General 
Definitions, Terms and Conditions. PAL mail sent for delivery within 
the contiguous 48 states is forwarded or returned as set forth in 
section 353 as appropriate.
951.7  Other Services
951.71  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:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. Certificate of mailing..............  947 [SS-4]                     
b. Insured mail........................  943 S[S-9]                     
c. Restricted delivery (if insured for   946 [SS-15]                    
 more than $50).                                                        
d. Return receipt (if insured for more   945 [SS-16]                    
 than $50).                                                             
e. Special handling....................  952 [SS-18]                    
------------------------------------------------------------------------

951.8  Fees
951.81  The fees for parcel airlift service are set forth in [Rate] 
Fee Schedule 951 [SS-13.]
952  SPECIAL HANDLING
952.1  Definition
952.11  Special handling service is a service that provides 
preferential handling to the extent practicable during dispatch and 
transportation.
952.2  Description of Service
952.21  Special handling service is available for mail sent under 
the following classification schedules:
    a. First-Class Mail
    b. [Single Piece,] Parcel Post, Bound Printed Matter, Special, 
and Library Standard Mail
952.22  Special handling service is mandatory for matter [which] 
that requires special attention in handling, transportation and 
delivery.
952.3  Requirements of the Mailer
952.31  Mail sent under this schedule must be identified as 
[prescribed] specified by the Postal Service [regulation.]
952.4  Deposit of Mail
952.41  Mail sent under this schedule must be deposited in a manner 
[prescribed] specified by the Postal Service.
952.5  Forwarding and Return
952.51  If undeliverable as addressed, special handling mail that is 
forwarded to the addressee is given special handling without 
requiring payment of an additional handling fee. However, additional 
postage at the applicable Standard Mail rate is collected on 
delivery.
952.6  Other Services
952.61  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:

------------------------------------------------------------------------
                Service                      Classification schedule    
------------------------------------------------------------------------
a. COD mail............................  944 [SS-6]                     
b. Insured mail........................  943 [SS-9]                     
c. Parcel airlift......................  951 [SS-13]                    
d. Merchandise return (shippers only)..  932 [SS-20]                    
------------------------------------------------------------------------

952.7  Fees
952.71  The fees for special handling service are set forth in 
[Rate] Fee Schedule 952 [SS-18].
960  STAMPED PAPER
961  STAMPED ENVELOPES
961.1  Definition 961.11 Plain stamped envelopes and printed stamped 
envelopes are envelopes with postage thereon offered for sale by the 
Postal Service.
961.2  Description of Service
961.21  Stamped envelopes are available for:
    a. First-Class Mail within the first rate increment.
    b. Standard Mail mailed at a minimum [per piece] per piece rate 
as [prescribed] specified by the Postal Service.
961.22  Printed stamped envelopes may be obtained by special 
request.
961.3  Fees
961.31  The fees for stamped envelopes are set forth in [Rate] Fee 
Schedule 961 [SS-19.]
962  STAMPED CARDS
962.1  Definition
962.11  Stamped Cards. Stamped Cards are cards with postage 
imprinted or impressed on them and supplied by the Postal Service 
for the transmission of messages.
962.12  Double Stamped Cards. Double Stamped Cards consist of two 
attached cards, one of which may be detached by the receiver and 
returned by mail as a single Stamped Card.
962.2  Description of Service. Stamped Cards are available for 
First-Class Mail.
962.3  Fees. The fees for Stamped Cards are set forth in [Rate] Fee 
Schedule 962 [SS-19A.]
970  POSTAL MONEY ORDERS
971  DOMESTIC POSTAL MONEY ORDERS
971.1  Definition
971.11  Money order service is a service that provides the customer 
with an instrument for payment of a specified sum of money.
971.2  Description of Service
971.21  The maximum value for which a domestic postal money order 
may be purchased is $700. Other restrictions on the number or dollar 
value of postal money order sales, or both, may be imposed [in 
accordance with] under regulations [prescribed] specified by law or 
the Postal Service.
971.22  A receipt of purchase is provided at no additional cost.
971.23  The Postal Service will replace money orders that are 
spoiled or incorrectly prepared, regardless of who caused the error, 
without charge if replaced on the date originally issued.
971.24  If a replacement money order is issued after the date of 
original issue because the original was spoiled or incorrectly 
prepared, the applicable money order fee may be collected from the 
customer.
971.25  Inquiries and/or claims may be filed by the purchaser, 
payee, or endorsee.
971.3  Fees
971.31  The fees for domestic postal money orders are set forth in 
[Rate] Fee Schedule 971 [SS-8.]

    Amend the domestic mail classification schedule as Follows:

General Definitions, Terms and Conditions

1000  GENERAL DEFINITIONS
    As used in this Domestic Mail Classification Schedule, the 
following terms have the meanings set forth below.
1001  Advertising
    Advertising includes all material for the publication of which a 
valuable consideration is paid, accepted, or promised, that calls 
attention to something for the purpose of getting people to buy it, 
sell it, seek it, or support it. If an advertising rate is charged 
for the publication of reading matter or other material, such 
material shall be deemed to be advertising. Articles, items, and 
notices in the form of reading matter inserted in accordance with a 
custom or understanding that textual matter is to be inserted for 
the advertiser or his products in the publication in which a display 
advertisement appears are deemed to be advertising. If a publisher 
advertises his own services or publications, or any other

[[Page 39681]]

business of the publisher, whether in the form of display 
advertising or editorial or reading matter, this is deemed to be 
advertising.
1002  Aspect Ratio
    Aspect ratio is the ratio of width to length.
1003  Bills and Statements of Account
1003.1  A bill is a request for payment of a definite sum of money 
claimed to be owing by the addressee either to the sender or to a 
third party. The mere assertion of an indebtedness in a definite sum 
combined with a demand for payment is sufficient to make the message 
a bill.
1003.2  A statement of account is the assertion of the existence of 
a debt in a definite amount but which does not necessarily contain a 
request or a demand for payment. The amount may be immediately due 
or may become due after a certain time or upon demand or billing at 
a later date.
1003.3  A bill or statement of account must present the particulars 
of an indebtedness with sufficient definiteness to inform the debtor 
of the amount [he] that is required to pay [to acquit himself] for 
acquittal of the debt. However, neither a bill nor a statement of 
account need state the precise amount if it contains sufficient 
information to enable the debtor to determine the exact amount of 
the claim asserted.
1003.4  A bill or statement of account is not the less a bill or 
statement of account merely because the amount claimed is not in 
fact owing or may not be legally collectible.
1004  Girth
    Girth is the measurement around a piece of mail at its thickest 
part.
1005  Invoice
    An invoice is a writing showing the nature, quantity, and cost 
or price of items shipped or sent to a purchaser or consignor.
1006  Permit Imprints
    Permit imprints are printed indicia indicating postage has been 
paid by the sender under the permit number shown.
1007  Preferred Rates
    Preferred rates are the reduced rates established pursuant to 39 
U.S.C. 3626.
1008  ZIP Code
    The ZIP Code is a numeric code that facilitates the sortation, 
routing, and delivery of mail.
1009  Nonprofit Organizations and Associations
    Nonprofit organizations or associations are organizations or 
associations not organized for profit, none of the net income of 
which benefits any private stockholder or individual, and which meet 
the qualifications set forth below for each type of organization or 
association. The standard of primary purpose applies to each type of 
organization or association, except veterans' and fraternal. The 
standard of primary purpose requires that each type of organization 
or association be both organized and operated for the primary 
purpose. The following are the types of organizations or 
associations [which] that may qualify as authorized nonprofit 
organizations or associations.
    a. Religious. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct religious worship;
    ii. To support the religious activities of nonprofit 
organizations whose primary purpose is to conduct religious worship;
    iii. To perform instruction in, to disseminate information 
about, or otherwise to further the teaching of particular religious 
faiths or tenets.
    b. Educational. A nonprofit organization whose primary purpose 
is one of the following:
    i. The instruction or training of the individual for the purpose 
of improving or developing his capabilities;
    ii. The instruction of the public on subjects beneficial to the 
community.
    An organization may be educational even though it advocates a 
particular position or viewpoint so long as it presents a 
sufficiently full and fair exposition of the pertinent facts to 
permit an individual or the public to form an independent opinion or 
conclusion. On the other hand, an organization is not educational if 
its principal function is the mere presentation of unsupported 
opinion.
    c. Scientific. A nonprofit organization whose primary purpose is 
one of the following:
    i. To conduct research in the applied, pure or natural sciences;
    ii. To disseminate systematized technical information dealing 
with applied, pure or natural sciences.
    d. Philanthropic. A nonprofit organization primarily organized 
and operated for purposes beneficial to the public. Philanthropic 
organizations include, but are not limited to, organizations that 
[which] are organized for:
    i. Relief of the poor and distressed or of the underprivileged;
    ii. Advancement of religion;
    iii. Advancement of education or science;
    iv. Erection or maintenance of public buildings, monuments, or 
works;
    v. Lessening of the burdens of government;
    vi. Promotion of social welfare by organizations designed to 
accomplish any of the above purposes or:
    (A) To lessen neighborhood tensions;
    (B) To eliminate prejudice and discrimination;
    (C) To defend human and civil rights secured by law; or
    (D) To combat community deterioration and juvenile delinquency.
    e. Agricultural. A nonprofit organization whose primary purpose 
is the betterment of the conditions of those engaged in agriculture 
pursuits, the improvement of the grade of their products, and the 
development of a higher degree of efficiency in agriculture. The 
organization may advance agricultural interests through educational 
activities; the holding of agricultural fairs; the collection and 
dissemination of information concerning cultivation of the soil and 
its fruits or the harvesting of marine resources; the rearing, 
feeding, and management of livestock, poultry, and bees, or other 
activities relating to agricultural interests. The term agricultural 
nonprofit organization also includes any nonprofit organization 
whose primary purpose is the collection and dissemination of 
information or materials relating to agricultural pursuits.
    f. Labor. A nonprofit organization whose primary purpose is the 
betterment of the conditions of workers. Labor organizations 
include, but are not limited to, organizations in which employees or 
workmen participate, whose primary purpose is to deal with employers 
concerning grievances, labor disputes, wages, hours of employment 
and working conditions.
    g. Veterans'. A nonprofit organization of veterans of the armed 
services of the United States, or an auxiliary unit or society of, 
or a trust or foundation for, any such post or organization.
    h. Fraternal. A nonprofit organization [which] that meets all 
[of] the following criteria:
    i. Has as its primary purpose the fostering of brotherhood and 
mutual benefits among its members;
    ii. Is organized under a lodge or chapter system with a 
representative form of government;
    iii. Follows a ritualistic format; and
    iv. Is comprised of members who are elected to membership by 
vote of the members.
2000  DELIVERY OF MAIL
2010  Delivery Services
    The Postal Service provides the following modes of delivery:
    a. Caller service. The fees for caller service are set forth in 
[Rate] Fee Schedule 921 [SS-10.]
    b. Carrier delivery service.
    c. General delivery.
    d. Post office box service. The fees for post office box service 
are set forth in [Rate] Fee Schedule 922 [SS-10.]
2020  Conditions of Delivery
2021  General. Except as provided in section 2022, mail will be 
delivered as addressed unless the Postal Service is instructed 
otherwise by the addressee in writing.
2022  Refusal of Delivery. The addressee may control delivery of his 
mail. The addressee may refuse to accept a piece of mail that does 
not require a delivery receipt at the time it is offered for 
delivery or after delivery by returning it unopened to the Postal 
Service. For mail that requires a delivery receipt, the addressee or 
his representative may read and copy the name of the sender of 
registered, insured, certified, COD, return receipt, and Express 
Mail prior to accepting delivery. Upon signing the delivery receipt 
the piece may not be returned to the Postal Service without the 
applicable postage and fees affixed.
2023  Receipt. If a signed receipt is required, mail will be 
delivered to the addressee (or competent member of his family), to 
persons who customarily receive his mail or to one authorized in 
writing to receive the addressee's mail.
2024  Jointly Addressed Mail. Mail addressed to several persons may 
be delivered to any one of them. When two or more persons make 
conflicting orders for delivery for the same mail, the mail shall be 
delivered as determined by the Postal Service.

[[Page 39682]]

2025  Commercial Mail Receiving Agents. Mail may be delivered to a 
commercial mail receiving agency on behalf of another person. In 
consideration of delivery of mail to the commercial agent, the 
addressee and the agent are considered to agree that:
    a. No [change of address] change-of-address order will be filed 
with the post office when the agency relationship is terminated;
    b. When remailed by the commercial agency, the mail is subject 
to payment of new postage.
2026  Mail Addressed To Organizations. Mail addressed to 
governmental units, private organizations, corporations, 
unincorporated firms or partnerships, persons at institutions 
(including but not limited to hospitals and prisons), or persons in 
the military is delivered as addressed or to an authorized agent.
2027  Held Mail. Mail will be held for a specified period of time at 
the office of delivery [address] upon request of the addressee, 
unless the mail:
    a. Has contrary retention instructions;
    b. Is perishable; or
    c. Is registered, COD, insured, return receipt, certified, or 
Express Mail for which the normal retention period expires before 
the end of the specified holding period.
2030  Forwarding and Return
2031  Forwarding. Forwarding is the transfer of undeliverable-as-
addressed mail to an address other than the one originally placed on 
the [mail piece]mailpiece. All post offices will honor [change of 
address] change-of-address orders for a period of time specified by 
the Postal Service.
2032  Return. Return is the delivery of undeliverable-as-addressed 
mail to the sender.
2033  Applicable Provisions. The provisions of sections 150, 250, 
350 and 450 apply to forwarding and return.
2034  Forwarding for Postal Service Adjustments. When mail is 
forwarded due to Postal Service adjustments (such as, but not 
limited to, the discontinuance of the post office of original 
address, establishment of rural carrier service, conversion to city 
delivery service from rural, readjustment of delivery districts, or 
renumbering of houses and renaming of streets), it is forwarded 
without charge for a period of time specified by the Postal Service.
3000  POSTAGE AND PREPARATION
3010  Packaging
    Mail must be packaged so that:
    a. The contents will be protected against deterioration or 
degradation;
    b. The contents will not be likely to damage other mail, Postal 
Service employees or property, or to become loose in transit;
    c. The package surface must be able to retain postage indicia 
and address markings;
    d. It is marked by the mailer with a material [which] that is 
[not] neither readily water soluble nor [which can be] easily rubbed 
off or smeared, and the marking will be sharp and clear.
3020  Envelopes
    Paper used in the preparation of envelopes may not be of a 
brilliant color. Envelopes must be prepared with paper strong enough 
to withstand normal handling.
3030  Payment of Postage and Fees
    Postage must be fully prepaid on all mail at the time of 
mailing, except as authorized by law or this Schedule. Except as 
authorized by law or this Schedule, mail deposited without 
prepayment of sufficient postage shall be delivered to the addressee 
subject to payment of deficient postage, returned to the sender, or 
otherwise disposed of as [prescribed] specified by the Postal 
Service. Mail deposited without any postage affixed will be returned 
to the sender without any attempt at delivery.
3040  Methods for Paying Postage and Fees
    Postage for all mail may be prepaid [by] with postage meter 
indicia, adhesive stamps, or permit imprint, unless otherwise 
limited or [prescribed] specified by the Postal Service. The 
following methods of paying postage and fees require prior 
authorization from the Postal Service:
    a. Permit imprint,
    b. Postage meter,
    c. Precanceled stamps, precanceled envelopes, and mailer's 
precanceled postmarks.
3050  Authorization Fees
    Fees for authorization to use a permit imprint are set forth in 
[Rate] Schedule 1000. No fee is charged for authorization to use a 
postage meter. Fees for setting postage meters are set forth in 
[Rate] Fee Schedule 933[SS-12.] No fee is charged for authorization 
to use precanceled stamps, precanceled envelopes or mailer's 
precanceled postmark.
3060  Special Service Fees
    Fees for special services may be prepaid in any manner 
appropriate for the class of mail indicated or as otherwise 
[prescribed] specified by the Postal Service.
3070  Marking of Unpaid Mail
    Matter authorized for mailing without prepayment of postage must 
bear markings identifying the class of mail service. Matter so 
marked will be billed at the applicable rate of postage set forth in 
this Schedule. Matter not so marked will be billed at the applicable 
First-Class rate of postage.
3080  Refund of Postage
    When postage and special service fees have been paid on mail for 
which no service is rendered for the postage or fees paid, or 
collected in excess of the lawful rate, a refund may be made. There 
shall be no refund for registered, COD, general insurance, and 
Express Mail Insurance fees when the article is [later] withdrawn by 
the mailer after acceptance. In cases involving returned articles 
improperly accepted because of excess size or weight, a refund may 
be made.
3090  Calculation of Postage
    When a rate schedule contains per piece and per pound rates, the 
postage shall be the sum of the charges produced by those rates. 
When a rate schedule contains a minimum-[per-piece] per piece rate 
and a pound rate, the postage shall be the greater of the two. When 
the computation of postage yields a fraction of a cent in the 
charge, the next higher whole cent must be paid.
4000  POSTAL ZONES
4010  Geographic Units of Area
    In the determination of postal zones, the earth is considered to 
be divided into units of area thirty minutes square, identical with 
a quarter of the area formed by the intersecting parallels of 
latitude and meridians of longitude. The distance between these 
units of area is the basis of the postal zones.
4020  Measurement of Zone Distances
    The distance upon which zones are based shall be measured from 
the center of the unit of area containing the dispatching sectional 
center facility or multi-ZIP coded post office not serviced by a 
sectional center facility. A post office of mailing and a post 
office of delivery shall have the same zone relationship as their 
respective sectional center facilities or multi-ZIP coded post 
offices, but this shall not cause two post offices to be regarded as 
within the same local zone.
4030  Definition of Zones
4031  Local Zone. The local zone applies to mail mailed at any post 
office for delivery at that office; at any city letter carrier 
office or at any point within its delivery limits for delivery by 
carriers from that office; at any office from which a rural route 
starts for delivery on the same route; and on a rural route for 
delivery at the office from which the route starts or on any rural 
route starting from that office.
4032  First Zone. The first zone includes all territory within the 
quadrangle of entry in conjunction with every contiguous quadrangle, 
representing an area having a mean radial distance of approximately 
50 miles from the center of a given unit of area. The first zone 
also applies to mail between two post offices in the same sectional 
center.
4033  Second Zone. The second zone includes all units of area 
outside the first zone lying in whole or in part within a radius of 
approximately 150 miles from the center of a given unit of area.
4034  Third Zone. The third zone includes all units of area outside 
the second zone lying in whole or in part within a radius of 
approximately 300 miles from the center of a given unit of area.
4035  Fourth Zone. The fourth zone includes all units of area 
outside the third zone lying in whole or in part within a radius 
approximately 600 miles from the center of a given unit of area.
4036  Fifth Zone. The fifth zone includes all units of area outside 
the fourth zone lying in whole or in part within a radius of 
approximately 1,000 miles from the center of a given unit of area.
4037  Sixth Zone. The sixth zone includes all units of area outside 
the fifth zone lying in whole or in part within a radius of 
approximately 1,400 miles from the center of a given unit of area.
4038  Seventh Zone. The seventh zone includes all units of area 
outside the sixth zone lying in whole or in part within a radius of 
approximately 1,800 miles from the center of a given unit of area.

[[Page 39683]]

4039  Eighth Zone. The eighth zone includes all units of area 
outside the seventh zone.
4040  Zoned Rates
    Except as provided in section 4050, rates according to zone 
apply for zone-rated mail sent between Postal Service facilities 
including [a]Armed [f]Forces post offices, wherever located.
4050  APO/FPO Mail
4051  General. Except as provided in section 4052, the rates of 
postage for zone-rated mail transported between the United States, 
or the possessions or territories of the United States, on the one 
hand, and Army, Air Force and Fleet Post Offices on the other, or 
among the latter, shall be the applicable zone rates for mail 
between the place of mailing or delivery and the city of the 
postmaster serving the Army, Air Force or Fleet Post Office 
concerned.
4052  Transit Mail. The rates of postage for zone-rated mail [which] 
that is mailed at or addressed to an Armed Forces [armed forces] 
post office and [which] is transported directly to or from Armed 
Forces [armed forces] post offices at the expense of the Department 
of Defense, without transiting any of the 48 contiguous states 
(including the District of Columbia), shall be the applicable local 
zone rate; provided, however, that if the distance from the place of 
mailing to the embarkation point or the distance from the point of 
debarkation to the place of delivery is greater than the local zone 
for such mail, postage shall be assessed on the basis of the 
distance from the place of mailing to the embarkation point or the 
distance from the point of debarkation to the place of delivery of 
such mail, as the case may be. The word ``transiting'' does not 
include enroute transfers at coastal gateway cities which are 
necessary to transport military mail directly between military post 
offices.
5000  PRIVACY OF MAIL
5010  First-Class and Express Mail
    Matter mailed as First-Class Mail or Express Mail shall be 
treated as mail which is sealed against postal inspection and shall 
not be opened except as authorized by law.
5020  All Other Mail
    Matter not paid at First-Class Mail or Express Mail rates must 
be wrapped or secured in the manner [prescribed] specified by the 
Postal Service so that the contents may be examined. Mailing of 
sealed items as other than First-Class Mail or Express Mail is 
considered consent by the sender to the postal inspection of the 
contents.
6000  MAILABLE MATTER
6010  General
    Mailable matter is any matter which:
    a. Is not mailed in contravention of 39 U.S.C. Chapter 30, or of 
17 U.S.C. 109;
    b. While in the custody of the Postal Service is not likely to 
become damaged itself, to damage other pieces of mail, to cause 
injury to Postal Service employees or to damage Postal Service 
property; and
    c. Is not mailed contrary to any special conditions or 
limitations placed on transportation or movement of certain 
articles, when imposed under law by the U.S. Department of the 
Treasury; U.S. Department of Agriculture; U.S. Department of 
Commerce; U.S. Department of Health and Human Services, U.S. 
Department of Transportation; and any other Federal department or 
agency having legal jurisdiction.
6020  Minimum Size Standards
    The following minimum size standards apply to all mailable 
matter:
    a. All items must be at least 0.007 inches thick, and
    b. all items, other than keys and identification devices, which 
are 0.25 inch thick or less must be
    i. rectangular in shape,
    ii. at least 3.5 inches in width, and
    iii. at least 5 inches in length.
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.

Attached B--Requested Changes in Rates and Fees and Phasing 
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 to the attendant rate and fee schedules.
    Rate and fee schedules were last amended in part by the Decision of 
the Governors on the Further Recommended Decision of the Postal Rate 
Commission on Classroom Mail, Docket No. MC96-2 (Classroom Decision), 
as implemented by Resolution 97-9 of the Board of Governors; the 
Decision of the Governors on the Recommended Decision of the Postal 
Rate Commission on Special Services Fees and Classifications, Docket 
No. MC96-3 (Special Services Decision), as implemented by Resolution 
97-7 of the Board of Governors; and the Decision of the Governors on 
the Recommended Decision of the Postal Rate Commission on the 
Experimental Nonletter-Size Business Reply Mail Categories and Fees, 
Docket No. MC97-1 (BRM Decision), as implemented by resolution 97-8 of 
the Board of Governors. The current rate and fee schedules (which are 
published in part at 39 CFR Part 3001, subpart C, appendix A, and in 
part as the Attachment to the Classroom Decision 62 (Fed. Reg. 33,142), 
in part as Attachment B to the Special Services Decision (62 Fed. Reg. 
26,099), in part as Attachment B to the BRM Decision (26 Fed. Reg. 
25,756), and in part as Attachment B to the Decision of the Governors 
of the United States Postal Service on the Recommended Decision of the 
Postal Rate Commission on Nonprofit Standard Mail, Nonprofit Enhanced 
Carrier Route Standard Mail, Nonprofit Periodicals, and Within County 
Periodicals, Docket No. MC96-2( 61 Fed. Reg. 42,464)), are incorporated 
by reference in this Request.
    The schedules in this attachment present both proposed and current 
rates and fees. In general, for existing schedules, proposed additions 
to text in the schedules or notes are underlined; proposed deletions 
are in brackets. New or renamed categories within existing schedules 
are underlined. Rate or fee categories that are either renamed or 
proposed for elimination are either in brackets or are assigned the 
acronym ``NA'' in the proposed rate or fee column. Special service 
schedules are renumbered according to the numbering system presented in 
Attachment A.
    The proposed rate and fee schedules in this attachment contain both 
the proposed and the current rate levels for the preferred rate 
categories. The current levels are those approved by the Governors in 
Docket No. R94-1 for Library Rate, and in Docket No. MC96-2 for all 
other preferred subclasses. The proposed rates in this attachment are 
the ``full'' Step 6 rates pursuant 39 U.S.C. Sec. 3626. Section 3626 
establishes a six-year phasing period, at the end of which the markups 
for preferred subclasses will be set at one-half the markups for the 
corresponding commercial subclasses. The test year in this proceeding 
is FY 98, during which the markups for preferred subclasses are to be 
set at 5/12ths the markups for the corresponding commercial subclasses. 
The phasing schedules provided on pages 67-74 of this attachment show 
the proposed rates at levels 5 and 6 and are provided for informational 
purposes only.
    The requested changes in the rate and fee schedules are as follows:

[[Page 39684]]



                                                         Express Mail Schedules 121, 122 and 123                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Proposed rates                                                                Current rates                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Schedule     Schedule     Schedule                  Schedule     Schedule     Schedule 
                                                    Schedule       122        123 post     123 post     Schedule       122        123 post     123 post 
          Weight not exceeding (pounds)             121 same     customed    office to    office to     121 same     customed    office to    office to 
                                                  day airport    designed   post office   addressee   day airport    designed   post office   addressee 
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.5.............................................        $9.25        $9.50       $10.50       $11.25        $9.00        $9.45       $10.25       $10.75
 1..............................................        10.75        13.50        12.25        14.95        10.50        14.00        12.05        15.00
 2..............................................        11.25        13.75        12.25        14.95        10.50        14.00        12.05        15.00
 3..............................................        12.25        15.50        14.00        18.00        11.95        16.15        14.20        17.25
 4..............................................        13.25        17.35        15.75        20.25        13.05        18.30        16.35        19.40
 5..............................................        14.25        19.75        17.75        22.00        14.15        20.45        18.50        21.55
 6..............................................        15.50        22.75        21.00        24.75        15.30        24.30        22.35        25.40
 7..............................................        16.50        24.25        22.50        27.00        16.40        25.40        23.45        26.45
 8..............................................        17.75        25.75        23.50        27.75        17.55        26.50        24.55        27.60
 9..............................................        19.00        27.25        24.50        28.50        18.70        27.60        25.65        28.65
10..............................................        20.25        28.75        25.75        30.00        19.75        28.75        26.80        29.80
11..............................................        21.50        29.50        26.75        30.75        20.90        29.80        27.85        30.90
12..............................................        22.75        30.25        27.75        31.50        22.05        30.95        29.00        32.00
13..............................................        24.00        31.00        29.00        32.25        23.15        32.00        30.10        33.10
14..............................................        25.25        31.75        31.00        33.50        24.30        33.15        31.20        34.25
15..............................................        26.50        32.50        32.00        34.25        25.40        34.25        32.30        35.30
16..............................................        27.75        34.00        33.10        35.50        26.50        35.35        33.45        36.45
17..............................................        29.00        34.50        34.55        37.00        27.65        36.50        34.55        37.60
18..............................................        30.25        36.00        36.00        38.50        28.80        37.60        35.65        38.65
19..............................................        31.50        37.50        37.45        40.00        29.90        38.70        36.75        39.80
20..............................................        32.75        38.50        38.25        40.75        31.00        39.80        37.85        40.90
21..............................................        34.00        40.50        40.00        42.00        32.15        40.95        39.00        42.00
22..............................................        35.25        41.00        41.00        43.00        33.25        42.00        40.05        43.10
23..............................................        36.50        43.00        42.00        44.25        34.40        43.15        41.20        44.25
24..............................................        37.75        44.00        43.00        45.70        35.55        44.25        42.30        45.30
25..............................................        39.00        45.00        44.00        47.20        36.60        45.35        43.40        46.45
26..............................................        40.25        46.50        45.20        48.65        37.75        46.45        44.50        47.50
27..............................................        41.50        47.50        46.65        50.10        38.75        47.55        45.65        48.65
28..............................................        42.75        48.50        48.10        51.55        39.70        48.65        46.70        49.75
29..............................................        44.00        50.00        49.55        53.00        40.65        49.80        47.85        50.85
30..............................................        45.25        50.80        51.00        54.50        41.60        50.90        49.00        52.00
31..............................................        46.50        52.25        52.50        55.95        42.50        52.00        50.05        53.10
32..............................................        47.60        53.70        53.95        57.40        43.45        53.15        51.20        54.20
33..............................................        48.70        55.15        55.40        58.85        44.40        54.20        52.25        55.30
34..............................................        49.80        56.65        56.85        60.30        45.30        55.35        53.40        56.45
35..............................................        50.90        58.10        58.30        61.75        46.30        56.45        54.50        57.50
36..............................................        52.00        59.55        59.80        63.25        47.20        57.55        55.60        58.65
37..............................................        53.10        61.00        61.25        64.70        48.10        58.65        56.70        59.70
38..............................................        54.20        62.45        62.70        66.15        49.10        59.80        57.85        60.85
39..............................................        55.30        63.95        64.15        67.60        50.00        60.85        58.90        61.95
40..............................................        56.40        65.40        65.60        67.70        50.90        62.00        60.05        63.05
41..............................................        57.50        66.85        66.50        69.15        51.90        63.05        61.15        64.15
42..............................................        58.60        68.30        67.20        70.60        52.80        64.20        62.25        65.30
43..............................................        59.70        69.75        68.60        72.00        53.75        65.35        63.40        66.40
44..............................................        60.80        71.20        70.05        73.45        54.70        66.40        64.50        67.50
45..............................................        61.90        72.70        71.45        74.85        55.60        67.55        65.60        68.65
46..............................................        63.00        74.15        72.90        76.25        56.55        68.65        66.70        69.70
47..............................................        64.10        75.60        73.50        76.55        57.50        69.75        67.80        70.85
48..............................................        65.15        77.05        74.60        77.95        58.45        70.85        68.90        71.95
49..............................................        66.15        78.50        76.00        79.35        59.35        72.00        70.05        73.05
50..............................................        67.15        79.95        77.40        80.75        60.30        73.05        71.10        74.15
51..............................................        68.15        80.25        78.80        82.15        61.25        74.20        72.25        75.30
52..............................................        69.15        81.70        80.20        83.55        62.15        75.30        73.35        76.35
53..............................................        70.15        83.10        81.65        85.00        63.15        76.40        74.45        77.50
54..............................................        71.15        84.55        83.05        86.40        64.05        77.55        75.60        78.60
55..............................................        72.15        85.95        84.45        87.80        65.00        78.60        76.70        79.70
56..............................................        73.15        87.45        85.85        89.20        65.95        79.75        77.80        80.85
57..............................................        74.15        88.85        87.25        90.60        66.85        80.85        78.90        81.90
58..............................................        75.15        90.30        88.65        92.05        67.80        81.95        80.05        83.05
59..............................................        76.15        91.75        90.10        93.45        68.75        83.15        81.20        84.25
60..............................................        77.15        93.15        91.50        94.85        69.65        84.45        82.50        85.55
61..............................................        78.15        94.60        92.90        96.25        70.65        85.85        83.90        86.95
62..............................................        79.15        96.05        94.30        97.65        71.55        87.15        85.20        88.25
63..............................................        80.15        97.50        95.70        99.05        72.45        88.45        86.50        89.55
64..............................................        81.15        98.90        97.15       100.50        73.45        89.85        87.90        90.95
65..............................................        82.15       100.35        98.55       101.90        74.35        91.15        89.20        92.25
66..............................................        83.15       101.80        99.95       103.30        75.30        92.55        90.60        93.65
67..............................................        84.15       103.20       101.35       104.70        76.25        93.85        91.90        94.95

[[Page 39685]]

                                                                                                                                                        
68..............................................        85.15       104.70       102.75       106.10        77.15        95.25        93.30        96.35
69..............................................        86.15       106.10       104.15       107.50        78.10        96.55        94.60        97.65
70..............................................        87.15       107.55       105.60       108.95        79.05        97.85        95.90        98.95
--------------------------------------------------------------------------------------------------------------------------------------------------------
NOTES:                                                                                                                                                  
1.The applicable 2-pound rate is charged for matter sent in a ``flat rate'' envelope provided by the Postal Service.                                    
2.Add [$4.95] $8.25 for each pickup stop.                                                                                                               
3.Add [$4.95] $8.25 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\  
------------------------------------------------------------------------
                                                  Proposed     Current  
          Letters and Sealed Parcels                rate         rate   
                                                  (cents)      (cents)  
------------------------------------------------------------------------
Regular:                                                                
    Single Piece: First Ounce.................         33.0         32.0
    Presort\11\...............................         31.0         29.5
    Pre-barcoded Parcels (experimental)\11\...         29.0         28.0
    Prepaid Reply Mail........................         30.0           NA
    Qualified Business Reply Mail.............         30.0           NA
    Additional Ounce \2\......................         23.0         23.0
    Nonstandard Surcharge                                               
        Single Piece..........................         16.0         11.0
        Presort...............................         11.0          5.0
Automation--Presort:\1\                                                 
    Letters \3\                                                         
        Basic Presort \4\.....................         27.5         26.1
        3-Digit Presort \5\...................         26.5         25.4
        5-Digit Presort \6\...................         24.9         23.8
        Carrier Route Presort \7\.............         24.6         23.0
    Flats \8\                                                           
        Basic Presort \9\.....................         30.0         29.0
        3/5-Digit Presort \10\................         28.0         27.0
    Additional Ounce \2\......................         23.0         23.0
    Nonstandard Surcharge.....................         11.0         5.0 
------------------------------------------------------------------------
Schedule 221 Notes:                                                     
\1\ A mailing fee of [$85.00] $100.00 must be paid once each year at    
  each office of mailing by any person who mails other than Single Piece
  First-Class Mail. Payment of the fee allows the mailer to mail at any 
  First-Class rate. [For presorted mailings weighing more than 2 ounces,
  subtract 4.6 cents per piece.]                                        
\2\ Rate applies through 11 ounces. Heavier pieces are subject to       
  Priority Mail rates.                                                  
\3\ Rates apply to bulk-entered mailings of at least 500 letter-size    
  pieces, which must be delivery point barcoded and meet other          
  preparation requirements [prescribed] specified by the Postal Service.
\4\ Rate applies to letter-size Automation-Presort category mail not    
  mailed at 3-Digit, 5-Digit, or Carrier Route rates.                   
\5\ Rate applies to letter-size Automation-Presort category mail        
  presorted to single or multiplethree-digit ZIP Code destinations [as  
  prescribed] specified by the Postal Service.                          
\6\ Rate applies to letter-size Automation-Presort category mail        
  presorted to single or multiple five-digit ZIP Code destinations [as  
  prescribed] specified by the Postal Service.                          
\7\ Rate applies to letter-size Automation-Presort category mail        
  presorted to carrier routes specified by the Postal Service.          
\8\ Rates apply to bulk-entered mailings of at least 500 flat-size      
  pieces, each of which must be delivery-point barcoded or bear a ZIP+4 
  barcode, and must meet other preparation requirements specified       
  [prescribed] by the Postal Service.                                   
\9\ Rate applies to flat-size Automation-Presort category mail not      
  mailed at the 3/5-Digit rate.                                         
\10\ Rate applies to flat-size Automation-Presort category mail         
  presorted to single or multiple three-and five-digit ZIP Code         
  destinations as specified by the Postal Service.                      
\11\ Nonpresorted pre-barcoded parcels must be properly prepared and    
  submitted in mailings of at least 50 pieces. This experimental        
  discount is in effect until April 28, 1998.                           
\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 222 [Stamped Cards and Post] Cards   
------------------------------------------------------------------------
                                           Proposedrate    Current rate 
                  Cards                       (cents)         (cents)   
------------------------------------------------------------------------
Regular:                                                                
    Single Piece........................            21.0            20.0
    Presort \1\.........................            19.0            18.0
    Prepaid Reply Mail..................            18.0              NA
    Qualified Business Reply Mail.......            18.0              NA
Automation-Presort:\1\ \2\                                              
    Basic Presort \3\...................            17.6            16.6

[[Page 39686]]

                                                                        
    3-Digit Presort \4\.................            17.0            15.9
    5-Digit Presort \5\.................            15.9            14.3
    Carrier Route Presort \6\...........            15.6           14.0 
------------------------------------------------------------------------
Schedule 222 Notes:                                                     
\1\ A mailing fee of [$85.00] $100.00 must be paid once each year at    
  each office of mailing by any person who mails other than Single Piece
  First-Class Mail. Payment of the fee allows the mailer to mail at any 
  First-Class rate.                                                     
\2\ Rates apply to bulk-entered mailings of at least 500 pieces, which  
  must be barcoded and meet other preparation requirements [prescribed] 
  specified by the Postal Service.                                      
\3\ Rate applies to Automation-Presort category mail not mailed at 3-   
  Digit, 5-Digit, or Carrier Route rates.                               
\4\ Rate applies to Automation-Presort category mail presorted to single
  or multiple three-digit ZIP Code destinations as [prescribed]         
  specified by the Postal Service.                                      
\5\ Rate applies to Automation-Presort category mail presorted to single
  or multiple five-digit ZIP Code destinations as [prescribed] specified
  by the Postal Service.                                                
\6\ Rate applies to Automation-Presort category mail presorted to       
  carrier routes specified by the Postal Service.                       


                                                 First-Class Mail, Priority Mail Subclass, Schedule 223                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                           Priority mail proposed rates                                                  Priority mail current rates                    
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Weight not                                                     
  Weight not exceeding (pounds)    L,1,2&3  Zone 4  Zone 5  Zone 6  Zone 7  Zone 8   exceeding (pounds)  L,1,2&3  Zone 4  Zone 5  Zone 6  Zone 7  Zone 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
1................................     3.20    3.20    3.20    3.20    3.20    3.20  1..................     3.00    3.00    3.00    3.00    3.00    3.00
2................................     3.20    3.20    3.20    3.20    3.20    3.20  2..................     3.00    3.00    3.00    3.00    3.00    3.00
3................................     4.40    4.40    4.40    4.40    4.40    4.40  3..................     4.00    4.00    4.00    4.00    4.00    4.00
4................................     5.50    5.50    5.50    5.50    5.50    5.50  4..................     5.00    5.00    5.00    5.00    5.00    5.00
5................................     6.60    6.60    6.60    6.60    6.60    6.60  5..................     6.00    6.00    6.00    6.00    6.00    6.00
6................................     6.75    6.90    7.75    7.80    8.25    8.75  6..................     6.35    6.90    7.10    7.20    7.80    8.00
7................................     7.05    7.60    8.60    9.10    9.85   11.15  7..................     6.65    7.50    8.10    8.40    9.20    9.80
8................................     7.35    8.30    9.45   10.05   10.85   12.40  8..................     6.95    8.00    9.00    9.50   10.40   11.60
9................................     7.65    9.00   10.25   11.00   11.90   13.65  9..................     7.40    8.60    9.80   10.60   11.30   13.00
10...............................     8.10    9.75   11.10   11.90   12.80   14.85  10.................     7.80    9.30   10.55   11.40   12.15   14.05
11...............................     8.55   10.45   11.90   12.85   13.85   16.10  11.................     8.25    9.90   11.35   12.20   13.00   15.10
12...............................     9.00   11.15   12.75   13.80   14.85   17.35  12.................     8.70   10.55   12.10   13.00   13.90   16.15
13...............................     9.45   11.85   13.60   14.70   15.90   18.60  13.................     9.10   11.20   12.80   13.80   14.75   17.20
14...............................     9.90   12.60   14.40   15.65   16.90   19.85  14.................     9.55   11.85   13.60   14.55   15.60   18.25
15...............................    10.35   13.30   15.25   16.60   17.95   21.05  15.................    10.00   12.45   14.35   15.35   16.50   19.30
16...............................    10.80   14.00   15.50   17.50   18.95   22.30  16.................    10.40   13.15   15.05   16.15   17.35   20.35
17...............................    11.25   14.75   16.30   18.45   20.00   23.55  17.................    10.85   13.75   15.80   16.95   18.20   21.40
18...............................    11.70   15.45   17.10   19.40   21.00   24.80  18.................    11.30   14.35   16.50   17.75   19.05   22.45
19...............................    12.15   16.15   17.90   20.30   22.05   26.05  19.................    11.70   15.05   17.25   18.55   19.95   23.50
20...............................    12.55   16.85   18.70   21.25   23.05   27.25  20.................    12.15   15.65   17.95   19.30   20.80   24.55
21...............................    12.95   17.60   18.75   22.20   24.10   28.50  21.................    12.60   16.35   18.70   20.10   21.65   25.60
22...............................    13.35   18.30   19.50   23.10   25.10   29.75  22.................    13.00   16.95   19.40   20.90   22.55   26.65
23...............................    13.75   19.00   20.25   24.05   26.15   31.00  23.................    13.45   17.55   20.15   21.70   23.40   27.70
24...............................    14.15   19.75   21.05   25.00   27.15   32.25  24.................    13.85   18.25   20.85   22.50   24.25   28.75
25...............................    14.55   20.45   21.80   25.90   28.20   33.45  25.................    14.30   18.85   21.60   23.25   25.15   29.85
26...............................    14.95   21.15   22.55   26.85   29.20   34.70  26.................    14.75   19.50   22.30   24.05   26.00   30.90
27...............................    15.35   21.85   23.35   27.80   30.25   35.95  27.................    15.15   20.15   23.00   24.85   26.85   31.95
28...............................    15.75   22.60   24.10   28.70   31.25   37.20  28.................    15.60   20.80   23.75   25.65   27.70   33.00
29...............................    16.15   23.30   24.90   29.65   32.30   38.45  29.................    16.05   21.40   24.45   26.45   28.60   34.05
30...............................    16.40   24.00   25.65   30.60   33.30   39.65  30.................    16.45   22.10   25.20   27.20   29.45   35.10
31...............................    16.85   24.75   26.40   31.55   34.35   40.90  31.................    16.90   22.70   25.90   28.00   30.30   36.15
32...............................    17.30   25.45   27.20   32.45   35.35   42.15  32.................    17.35   23.40   26.65   28.80   31.20   37.20
33...............................    17.75   26.15   27.95   33.40   36.40   43.40  33.................    17.75   24.00   27.35   29.60   32.05   38.25
34...............................    18.25   26.85   28.70   34.35   37.40   44.65  34.................    18.20   24.60   28.10   30.40   32.90   39.30
35...............................    18.70   27.60   29.50   35.25   38.40   45.85  35.................    18.60   25.30   28.80   31.20   33.75   40.35
36...............................    19.15   28.30   30.25   36.20   39.45   47.10  36.................    19.05   25.90   29.55   31.95   34.65   41.40
37...............................    19.60   29.00   31.05   37.15   40.45   48.35  37.................    19.50   26.55   30.25   32.75   35.50   42.45
38...............................    20.05   29.75   31.80   38.05   41.50   49.60  38.................    19.90   27.20   31.00   33.55   36.35   43.50
39...............................    20.55   30.45   32.55   39.00   42.50   50.85  39.................    20.35   27.80   31.70   34.35   37.25   44.55
40...............................    21.00   31.15   33.35   39.95   43.55   52.10  40.................    20.80   28.45   32.40   35.15   38.10   45.60
41...............................    21.45   31.85   34.10   40.85   44.55   53.30  41.................    21.20   29.10   33.15   35.90   38.95   46.65
42...............................    21.90   32.60   34.85   41.80   45.60   54.55  42.................    21.65   29.75   33.85   36.70   39.85   47.70
43...............................    22.35   33.30   35.65   42.75   46.60   55.80  43.................    22.10   30.35   34.60   37.50   40.70   48.80
44...............................    22.85   34.00   36.40   43.65   47.65   57.05  44.................    22.50   31.05   35.30   38.30   41.55   49.85
45...............................    23.30   34.75   37.20   44.60   48.65   58.30  45.................    22.95   31.65   36.05   39.10   42.40   50.90
46...............................    23.75   35.45   37.95   45.55   49.70   59.50  46.................    23.35   32.35   36.75   39.85   43.30   51.95
47...............................    24.20   36.15   38.70   46.45   50.70   60.75  47.................    23.80   32.95   37.50   40.65   44.15   53.00
48...............................    24.65   36.85   39.50   47.40   51.75   62.00  48.................    24.25   33.55   38.20   41.45   45.00   54.05
49...............................    25.15   37.60   40.25   48.35   52.75   63.25  49.................    24.65   34.25   38.95   42.25   45.90   55.10
50...............................    25.60   38.30   41.00   49.25   53.80   64.50  50.................    25.10   34.85   39.65   43.05   46.75   56.15
51...............................    26.05   39.00   41.80   50.20   54.80   65.70  51.................    25.55   35.50   40.35   43.85   47.60   57.20
52...............................    26.50   39.75   42.55   51.15   55.85   66.95  52.................    25.95   36.15   41.10   44.60   48.50   58.25
53...............................    26.95   40.45   43.35   52.05   56.85   68.20  53.................    26.40   36.80   41.80   45.40   49.35   59.30
54...............................    27.45   41.15   44.10   53.00   57.90   69.45  54.................    26.85   37.40   42.55   46.20   50.20   60.35
55...............................    27.90   41.85   44.85   53.95   58.90   70.70  55.................    27.25   38.05   43.25   47.00   51.05   61.40
56...............................    28.35   42.60   45.65   54.85   59.95   71.90  56.................    27.70   38.70   44.00   47.80   51.95   62.45
57...............................    28.80   43.30   46.40   55.80   60.95   73.15  57.................    28.10   39.35   44.70   48.55   52.80   63.50
58...............................    29.25   44.00   47.15   56.75   62.00   74.40  58.................    28.55   40.00   45.45   49.35   53.65   64.55
59...............................    29.75   44.75   47.95   57.65   63.00   75.65  59.................    29.00   40.60   46.15   50.15   54.55   65.60
60...............................    30.20   45.45   48.70   58.60   64.05   76.90  60.................    29.40   41.30   46.90   50.95   55.40   66.65
61...............................    30.65   46.15   49.50   59.55   65.05   78.10  61.................    29.85   41.90   47.60   51.75   56.25   67.75
62...............................    31.10   46.85   50.25   60.45   66.10   79.35  62.................    30.30   42.50   48.35   52.50   57.10   68.80
63...............................    31.55   47.60   51.00   61.40   67.10   80.60  63.................    30.70   43.20   49.05   53.30   58.00   69.85
64...............................    32.05   48.30   51.80   62.35   68.15   81.85  64.................    31.15   43.80   49.75   54.10   58.85   70.90
65...............................    32.50   49.00   52.55   63.25   69.15   83.10  65.................    31.60   44.45   50.50   54.90   59.70   71.95

[[Page 39687]]

                                                                                                                                                        
66...............................    32.95   49.75   53.30   64.20   70.20   84.30  66.................    32.00   45.10   51.20   55.70   60.60   73.00
67...............................    33.40   50.45   54.10   65.15   71.20   85.55  67.................    32.45   45.75   51.95   56.50   61.45   74.05
68...............................    33.85   51.15   54.85   66.05   72.25   86.80  68.................    32.90   46.35   52.65   57.25   62.30   75.10
69...............................    34.35   51.85   55.65   67.00   73.25   88.05  69.................    33.30   47.05   53.40   58.05   63.20   76.15
70...............................    34.80   52.60   56.40   67.95   74.30   89.30  70.................    33.75   47.65   54.10   58.85   64.05  77.20 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:                                                                                                                                                  
1. The 2-pound rate is charged for matter sent in a ``flat rate'' envelope provided by the Postal Service.                                              
2. Add [$4.95] $8.25 for each pickup stop.                                                                                                              
3. [Pieces presented in mailings of at least 300 pieces and meeting applicable Postal Service regulations for presorted priority Mail receive the 11    
  cents per-piece discount.] Add $0.50 per piece for hazardous medical materials and $1.00 per piece for other mailable hazardous materials.            
4. EXCEPTION: Parcels weighing less than 15 pounds, measuring over 84 inches in length and girth combined, are chargeable with a minimum rate equal to  
  that for a 15-pound parcel for the zone to which addressed.                                                                                           
5. Pieces presented in mailings of at least 50 pieces and meeting applicable Postal Service regulations for pre-barcoded Priority Mail parcels receive a
  discount of 4 cents per piece (experimental). This experimental discount is in effect until April 28, 1998.                                           


         Standard Mail Rate Schedule 321.1 Single Piece Subclass        
------------------------------------------------------------------------
                                                               Rate\1\  
                                                               (cents)  
------------------------------------------------------------------------
Basic:                                                                  
    One ounce or less......................................           32
    Not more than two ounces...............................           55
    Not more than three ounces.............................           78
    Not more than four ounces..............................          101
    Not more than five ounces..............................          124
    Not more than six ounces...............................          147
    Not more than seven ounces.............................          170
    Not more than eight ounces.............................          193
    Not more than nine ounces..............................          216
    Not more than ten ounces...............................          239
    Not more than eleven ounces............................          262
    Not more than thirteen ounces..........................          290
    More than thirteen ounces but less than sixteen ounces.          295
    Nonstandard Surcharge \2\..............................           11
Keys and Identification Devices:                                        
    First 2 ounces.........................................           99
    Each additional 2 ounces...............................           55
------------------------------------------------------------------------
Schedule 321.1 Notes:                                                   
\1\ When the postage rate computed at the single piece rate is higher   
  than the rate prescribed in the other Standard Class parcel categories
  contained in rate schedules 322.1, 322.2, 322.3, or 323.1 for which   
  the piece qualifies, the lower rate applies.                          
\2\ Applies only to pieces weighing one ounce or less.                  


 Standard Mail Rate Schedule 321.2A, Regular Subclass Presort Category 1
                                    3                                   
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  Current      Proposed 
------------------------------------------------------------------------
Letter size                                                             
    Piece Rate                                                          
        Basic.................................         25.6         24.7
        3/5-Digit.............................         20.9         20.9
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
Non-letter size: \4\                                                    
    Piece Rate                                                          
        Minimum per Piece \2\.................         30.6         30.0
        Basic 3/5 Digit.......................         22.5         24.0
        Destination Entry Discount per Piece                            
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
    Pound Rate \2\                                     67.7         65.0
        Plus per Piece Rate                                             
            Basic.............................         16.6         16.6
            3/5-Digit.........................          8.5         10.6
        Destination Entry Discount per Pound                            
            BMC...............................          6.4          7.2
            SCF...............................          8.5          8.8
------------------------------------------------------------------------
Schedule 321.2A notes:                                                  
\1\ A fee of [$85.00] $100 must be paid each 12-month period for each   
  bulk mailing permit.                                                  
\2\ Mailer pays either the minimum piece rate or the pound rate,        
  whichever is higher.                                                  

[[Page 39688]]

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


    Standard Mail Rate Schedule 321.2, B, Regular Subclass Automation   
                             Category 1, 10                             
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  Current      Proposed 
------------------------------------------------------------------------
Letter Size: \3\                                                        
    Piece Rate                                                          
        Basic Letter \3\......................         18.3         18.9
        3-Digit Letter \4\....................         17.5         17.8
        5-Digit Letter \5\....................         15.5         16.0
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
Flat Size: \6\                                                          
    Piece Rate                                                          
        Minimum per Piece \7\                                           
            Basic Flat \8\....................         27.7         24.3
            3/5-Digit Flat \9\................         18.9         20.7
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
    Pound Rate \7\                                     67.7         65.0
        Plus per piece Rate                                             
            Basic Flat \8\....................         13.7         10.9
            3/5-Digit Flat \9\................          4.9          7.3
    Destination Entry Discount per Pound                                
        BMC...................................          6.4          7.2
        SCF...................................          8.5         8.8 
------------------------------------------------------------------------
Schedule 321.2B notes:                                                  
\1\ A fee of [$ 85.00] $100 must be paid once each 12-month period for  
  each bulk mailing permit.                                             
\2\ For letter-size automation pieces meeting applicable Postal Service 
  regulations.                                                          
\3\ Rate applies to letter-size automation mail not mailed at 3-digit, 5-
  digit or carrier route rates.                                         
\4\ Rate applies to letter-size automation mail presorted to single or  
  multiple three-digit ZIP Code destinations as [prescribed] specified  
  by the Postal Service.                                                
\5\ Rate applies to letter-size automation mail presorted to single or  
  multiple five-digit ZIP Code destinations as [prescribed] specified by
  the Postal Service.                                                   
\6\ For flat-size automation mail meeting applicable Postal Service     
  regulations.                                                          
\7\ Mailer pays minimum piece rate or pound rate, whichever is higher.  
\8\ Rate applies to flat-size automation mail not mailed at 3/5-digit   
  rate.                                                                 
\9\ Rate applies to flat-size automation mail presorted to single or    
  multiple three-and five-digit ZIP Code destinations as specified by   
  the Postal Service.                                                   
10 Add $0.50 per piece for hazardous medical materials and $1.00 per    
  piece for other mailable hazardous materials.                         


 Standard Mail Rate Schedule 321.3, Enhanced Carrier Route Subclass 1, 5
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  Current      Proposed 
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic.................................         15.0         16.4
        Basic Automated Letter \2\............         14.6         15.7
        High Density..........................         14.2         14.3
        Saturation............................         13.3         13.4
    Destination Entry Discount per Piece                                
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
            DDU \3\...........................          2.3          2.3
Non-Letter Size 6                                                       
    Piece Rate                                                          
        Minimum per Piece \4\                                           
            Basic.............................         15.5         16.4
            High Density......................         14.7         15.3
            Saturation........................         13.7         14.1
        Destination Entry Discount per Piece                            
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
            DDU \3\...........................          2.3          2.3
    Pound Rate \4\............................         66.3         53.0
        Plus per Piece Rate                                             
            Basic.............................          1.8          5.5
            High Density......................          1.0          4.4

[[Page 39689]]

                                                                        
            Saturation........................          0.0          3.2
        Destination Entry Discount per Pound                            
            BMC...............................          6.4          7.2
            SCF...............................          8.5          8.8
            DDU \3\...........................         11.1         11.0
------------------------------------------------------------------------
Schedule 321.3 notes:                                                   
\1\ A fee of [$85.00] $100 must be paid each 12-month period for each   
  bulk mailing permit.                                                  
\2\ Rate applies to letter-size automation mail presorted to routes     
  specified by the Postal Service.                                      
\3\ Applies only to enhanced carrier route mail.                        
\4\ Mailer pays either the minimum piece rate or the pound rate,        
  whichever is higher.                                                  
5 Add $0.50 per piece for hazardous medical materials and $1.00 per     
  piece for other mailable hazardous materials.                         
6 Residual shape surcharge $0.10 per piece.                             


     Standard Mail Rate Schedule 321.4A, Nonprofit Subclass, Presort    
                      Categories 1, 3 (Full Rates)                      
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  Current      Proposed 
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic.................................         13.8         16.5
        3/5-Digit.............................         12.0         14.3
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
Non-Letter Size: 4                                                      
    Piece Rate                                                          
        Minimum per Piece \2\                                           
            Basic.............................         20.1         23.9
            3/5-Digit.........................         14.9         17.6
        Destination Entry Discount per Piece                            
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
    Pound Rate \2\............................         48.4         55.0
        Plus per Piece Rate                                             
            Basic.............................         10.0         12.6
            3/5-Digit.........................          4.8          6.3
        Destination Entry Discount per Pound                            
            BMC...............................          6.2          7.2
            SCF...............................          8.8          8.8
------------------------------------------------------------------------
Schedule 321.4A Notes                                                   
\1\A fee of [$85.00] $100.00 must be paid once each 12-month period for 
  each bulk mailing permit.                                             
\2\ Mailer pays either the minimum piece rate or the pound rate,        
  whichever is higher.                                                  
3 Add $0.50 per piece for hazardous medical materials and $1.00 per     
  piece for other mailable hazardous materials.                         
4 Residual shape surcharge $0.10 per piece.                             


   Standard Mail Rate Schedule 321.4B, Nonprofit Subclass, Automation   
                      Categories 1, 10 (Full Rates)                     
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  current      proposed 
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic Letter \3\......................         10.5         12.4
        3-Digit Letter \4\....................         10.1         11.2
        5-Digit Letter \5\....................          8.8          9.5
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
Flat Size: \6\                                                          
    Piece Rate                                                          
        Minimum per Piece \7\                                           
            Basic Flat \8\....................         17.7         19.0
            3/5-Digit \9\.....................         12.5         15.5
        Destination Entry Discount per Piece                            
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
    Pound Rate \7\............................         48.4         55.0

[[Page 39690]]

                                                                        
        Plus Per Piece Rate                                             
            Basic Flat \8\....................          7.6          7.7
            3/5-Digit Flat \9\................          2.4          4.2
        Destination Entry Discount per Pound                            
            BMC...............................          6.2          7.2
            SCF...............................          8.8          8.8
------------------------------------------------------------------------
Schedule 321.4B notes:                                                  
\1\ A fee of [$85.00] $100 must be paid once each 12-month period for   
  each bulk mailing permit.                                             
\2\ For letter-size automation pieces meeting applicable Postal Service 
  regulations.                                                          
\3\ Rate applies to letter-size automation mail not mailed at 3-digit, 5-
  digit or carrier route rates.                                         
\4\ Rate applies to letter-size automation mail presorted to single or  
  multiple three-digit ZIP Code destinations as [prescribed] specified  
  by the Postal Service.                                                
\5\ Rate applies to letter-size automation mail presorted to single or  
  multiple five-digit ZIP Code destinations as [prescribed] specified by
  the Postal Service.                                                   
\6\ For flat-size automation mail meeting applicable Postal Service     
  regulations.                                                          
\7\ Mailer pays minimum piece rate or pound rate, whichever is higher.  
\8\ Rate applies to flat-size automation mail not mailed at 3/5-digit   
  rate.                                                                 
\9\ Rate applies to flat-size automation mail presorted to single or    
  multiple three- and five-digit ZIP Code destinations as specified by  
  the Postal Service.                                                   
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 (Full Rates)                       
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                  Current      Proposed 
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic.................................          9.9          9.6
        Basic Automated Letter \2\............          8.5          9.2
        High Density..........................          9.3          7.8
        Saturation............................          8.7          7.2
    Destination Entry Discount per Piece                                
        BMC...................................          1.3          1.5
        SCF...................................          1.8          1.8
        DDU \3\...............................          2.4          2.3
Non-Letter Size: 6                                                      
    Piece Rate                                                          
        Minimum per Piece \4\                                           
            Basic.............................         10.7          9.6
            High Density......................         10.0          8.6
            Saturation........................          9.4          8.0
        Destination Entry Discount per Piece                            
            BMC...............................          1.3          1.5
            SCF...............................          1.8          1.8
            DDU \3\...........................          2.4          2.3
    Pound Rate \4\............................         45.1         35.0
        Plus per Piece Rate                                             
            Basic.............................          1.3          2.4
            High Density......................          0.6          1.4
            Saturation........................          0.0          0.8
        Destination Entry Discount per Pound                            
            BMC...............................          6.2          7.2
            SCF...............................          8.8          8.8
            DDU \3\...........................         11.4         11.0
------------------------------------------------------------------------
Schedule 321.5 notes:                                                   
\1\ A fee of [$85.00] $100 must be paid each 12-month period for each   
  bulk mailing permit.                                                  
\2\ Rate applies to letter-size automation mail presorted to routes     
  specified by the Postal Service.                                      
\3\ Applies only to enhanced carrier route mail.                        
\4\ Mailer pays either the minimum piece rate or the pound rate,        
  whichever is higher.                                                  
\5\ Add $0.50 per-piece for hazardous medical materials and $1.00 per   
  piece for other mailable hazardous materials.                         
\6\ Residual shape surcharge $0.10 per piece.                           


                                                       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..........................................................     3.15      2.63     3.15      2.79     3.15      2.87     3.15      2.95     3.15      2.95     3.15      2.95     3.15      2.95

[[Page 39691]]

                                                                                                                                                                                                
3..........................................................     3.59      2.76     3.85      3.00     4.23      3.34     4.35      3.68     4.35      3.95     4.35      3.95     4.35      3.95
4..........................................................     3.73      2.87     4.16      3.20     4.80      3.78     5.45      4.68     5.45      4.95     5.45      4.95     5.45      4.95
5..........................................................     3.86      2.97     4.39      3.38     5.31      4.10     6.22      5.19     6.55      5.56     6.55      5.95     6.55      5.95
6..........................................................     3.99      3.07     4.62      3.55     5.71      4.39     6.83      5.67     7.75      6.90     8.20      7.75     8.70      7.95
7..........................................................     4.11      3.16     4.82      3.71     6.07      4.67     7.41      6.11     8.93      7.51     9.80      9.15    11.10      9.75
8..........................................................     4.24      3.26     5.01      3.85     6.38      4.91     7.94      6.53     9.60      8.08    10.80      9.94    12.35     11.55
9..........................................................     4.33      3.33     5.19      3.99     6.71      5.16     8.43      6.92    10.25      8.62    11.85     10.65    13.60     12.95
10.........................................................     4.45      3.42     5.36      4.12     6.99      5.38     8.87      7.29    10.85      9.12    12.75     11.31    14.80     14.00
11.........................................................     4.54      3.49     5.53      4.25     7.27      5.59     9.30      7.63    11.39      9.59    13.80     11.93    16.05     15.05
12.........................................................     4.64      3.57     5.68      4.37     7.53      5.79     9.69      7.96    11.91     10.03    14.62     12.52    16.86     16.10
13.........................................................     4.73      3.64     5.81      4.47     7.77      5.98    10.07      8.26    12.39     10.45    15.25     13.07    17.21     17.15
14.........................................................     4.82      3.71     5.97      4.59     8.01      6.16    10.42      8.55    12.85     10.84    15.83     13.59    18.27     18.20
15.........................................................     4.90      3.77     6.10      4.69     8.24      6.34    10.74      8.82    13.26     11.22    16.37     14.08    19.25     19.25
16.........................................................     4.98      3.83     6.23      4.79     8.45      6.50    11.05      9.09    13.67     11.58    16.88     14.55    20.30     20.30
17.........................................................     5.07      3.90     6.34      4.88     8.66      6.66    11.35      9.33    14.05     11.92    17.36     15.00    21.35     21.35
18.........................................................     5.14      3.95     6.46      4.97     8.85      6.81    11.62      9.58    14.40     12.24    17.82     15.42    22.40     22.40
19.........................................................     5.23      4.02     6.58      5.06     9.04      6.95    11.88      9.80    14.74     12.55    18.26     15.83    23.25     23.25
20.........................................................     5.29      4.07     6.68      5.14     9.20      7.08    12.13     10.01    15.06     12.84    18.67     16.21    23.84     23.84
21.........................................................     5.36      4.12     6.80      5.23     9.37      7.21    12.37     10.23    15.36     13.12    19.06     16.59    24.41     24.41
22.........................................................     5.43      4.18     6.89      5.30     9.54      7.34    12.60     10.43    15.66     13.39    19.43     16.94    24.96     24.96
23.........................................................     5.50      4.23     7.01      5.39     9.71      7.47    12.82     10.62    15.93     13.66    19.78     17.28    25.47     25.47
24.........................................................     5.55      4.27     7.10      5.46     9.85      7.58    13.02     10.80    16.21     13.90    20.12     17.60    25.97     25.97
25.........................................................     5.62      4.32     7.19      5.53    10.01      7.70    13.21     10.98    16.46     14.14    20.43     17.91    26.45     26.45
26.........................................................     5.68      4.37     7.28      5.60    10.15      7.81    13.40     11.15    16.70     14.37    20.73     18.21    26.91     26.91
27.........................................................     5.75      4.42     7.37      5.67    10.28      7.91    13.59     11.31    16.93     14.59    21.03     18.50    27.34     27.34
28.........................................................     5.80      4.46     7.46      5.74    10.43      8.02    13.75     11.47    17.14     14.81    21.32     18.78    27.77     27.77
29.........................................................     5.86      4.51     7.55      5.81    10.56      8.12    13.92     11.63    17.35     15.01    21.58     19.05    28.17     28.17
30.........................................................     5.92      4.55     7.63      5.87    10.67      8.21    14.08     11.78    17.55     15.20    21.84     19.30    28.57     28.57
31.........................................................     5.98      4.60     7.70      5.92    10.80      8.31    14.23     11.92    17.75     15.39    22.08     19.55    28.94     28.94
32.........................................................     6.03      4.64     7.79      5.99    10.92      8.40    14.38     12.06    17.94     15.58    22.31     19.79    29.30     29.30
33.........................................................     6.08      4.68     7.87      6.05    11.04      8.49    14.52     12.20    18.11     15.76    22.54     20.02    29.66     29.66
34.........................................................     6.14      4.72     7.93      6.10    11.14      8.57    14.65     12.32    18.29     15.94    22.75     20.24    30.00     30.00
35.........................................................     6.19      4.76     8.01      6.16    11.26      8.66    14.79     12.45    18.46     16.11    22.96     20.46    30.33     30.33
36.........................................................     6.24      4.80     8.07      6.21    11.38      8.75    14.91     12.58    18.61     16.27    23.16     20.66    30.64     30.64
37.........................................................     6.29      4.84     8.14      6.26    11.47      8.82    15.04     12.70    18.77     16.43    23.35     20.87    30.94     30.94
38.........................................................     6.34      4.88     8.22      6.32    11.58      8.91    15.15     12.81    18.92     16.57    23.54     21.07    31.24     31.24
39.........................................................     6.40      4.92     8.28      6.37    11.67      8.98    15.27     12.92    19.06     16.72    23.71     21.26    31.53     31.53
40.........................................................     6.44      4.95     8.35      6.42    11.77      9.05    15.37     13.04    19.20     16.86    23.89     21.44    31.81     31.81
41.........................................................     6.50      5.00     8.42      6.48    11.86      9.12    15.50     13.14    19.33     17.00    24.06     21.62    32.07     32.07
42.........................................................     6.54      5.03     8.48      6.52    11.95      9.19    15.60     13.24    19.46     17.14    24.21     21.79    32.33     32.33
43.........................................................     6.58      5.06     8.54      6.57    12.05      9.27    15.69     13.35    19.58     17.28    24.37     21.96    32.58     32.58
44.........................................................     6.63      5.10     8.59      6.61    12.13      9.33    15.79     13.44    19.70     17.41    24.52     22.12    32.83     32.83
45.........................................................     6.67      5.13     8.66      6.66    12.22      9.40    15.88     13.54    19.81     17.52    24.66     22.28    33.06     33.06
46.........................................................     6.72      5.17     8.72      6.71    12.30      9.46    15.98     13.63    19.93     17.65    24.80     22.44    33.30     33.30
47.........................................................     6.77      5.21     8.78      6.75    12.38      9.52    16.06     13.72    20.03     17.77    24.93     22.59    33.52     33.52
48.........................................................     6.81      5.24     8.84      6.80    12.47      9.59    16.15     13.82    20.14     17.88    25.06     22.74    33.73     33.73
49.........................................................     6.85      5.27     8.89      6.84    12.55      9.65    16.24     13.90    20.24     17.99    25.18     22.88    33.95     33.95
50.........................................................     6.89      5.30     8.94      6.88    12.61      9.70    16.31     13.99    20.35     18.10    25.31     23.02    34.15     34.15
51.........................................................     6.94      5.34     9.00      6.92    12.70      9.77    16.39     14.07    20.44     18.20    25.42     23.16    34.35     34.35
52.........................................................     6.98      5.37     9.06      6.97    12.77      9.82    16.47     14.15    20.53     18.31    25.54     23.29    34.54     34.54
53.........................................................     7.02      5.40     9.11      7.01    12.83      9.87    16.54     14.23    20.62     18.42    25.64     23.41    34.74     34.74
54.........................................................     7.06      5.43     9.17      7.05    12.91      9.93    16.61     14.31    20.71     18.51    25.76     23.54    34.92     34.92
55.........................................................     7.10      5.46     9.20      7.08    12.99      9.99    16.69     14.38    20.79     18.61    25.85     23.66    35.10     35.10
56.........................................................     7.15      5.50     9.27      7.13    13.05     10.04    16.75     14.45    20.88     18.70    25.96     23.79    35.27     35.27
57.........................................................     7.19      5.53     9.32      7.17    13.12     10.09    16.82     14.53    20.95     18.80    26.05     23.89    35.44     35.44
58.........................................................     7.23      5.56     9.36      7.20    13.18     10.14    16.88     14.60    21.04     18.89    26.14     24.01    35.60     35.60
59.........................................................     7.27      5.59     9.41      7.24    13.25     10.19    16.95     14.67    21.12     18.97    26.24     24.12    35.76     35.76
60.........................................................     7.31      5.62     9.46      7.28    13.33     10.25    17.01     14.74    21.19     19.07    26.32     24.22    35.92     35.92
61.........................................................     7.36      5.66     9.52      7.32    13.38     10.29    17.07     14.81    21.26     19.14    26.40     24.33    36.07     36.07
62.........................................................     7.40      5.69     9.56      7.35    13.44     10.34    17.12     14.87    21.34     19.23    26.49     24.44    36.22     36.22
63.........................................................     7.42      5.71     9.61      7.39    13.51     10.39    17.19     14.93    21.40     19.31    26.58     24.53    36.37     36.37
64.........................................................     7.46      5.74     9.65      7.42    13.57     10.44    17.24     15.00    21.46     19.39    26.66     24.64    36.50     36.50
65.........................................................     7.50      5.77     9.70      7.46    13.62     10.48    17.29     15.06    21.52     19.46    26.74     24.73    36.64     36.64
66.........................................................     7.55      5.81     9.75      7.50    13.68     10.52    17.34     15.13    21.59     19.55    26.81     24.82    36.77     36.77
67.........................................................     7.59      5.84     9.79      7.53    13.74     10.57    17.39     15.18    21.65     19.62    26.88     24.92    36.91     36.91
68.........................................................     7.62      5.86     9.83      7.56    13.81     10.62    17.45     15.24    21.71     19.68    26.96     25.00    37.04     37.04
69.........................................................     7.66      5.89     9.87      7.59    13.86     10.66    17.50     15.30    21.76     19.76    27.02     25.10    37.15     37.15
70.........................................................     7.70      5.92     9.93      7.64    13.92     10.71    17.55     15.35    21.83     19.83    27.08     25.18    37.28    37.28 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule 322.1A notes:                                                                                                                                                                          
\1\ For nonmachinable Inter-BMC parcels, add: $1.35 per piece.                                                                                                                                  
\2\ For each pickup stop, add: $8.25.                                                                                                                                                           
\3\ For Origin Bulk Mail Center Discount, deduct $0.57 per piece.                                                                                                                               
\4\ For BMC Presort, deduct $0.12 per piece.                                                                                                                                                    
\5\ For Barcoded Discount, deduct $0.04 per piece.                                                                                                                                              
\6\ See DMCS section 322.16 for oversize Parcel Post.                                                                                                                                           
\7\ Add $0.50 per piece for hazardous medical materials and $1.00 per piece for other mailable hazardous materials.                                                                             


                                          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..................................................      2.48      2.24      2.70      2.31      2.70      2.47      2.70      2.55      2.70      2.63
 3..................................................      2.65      2.31      2.98      2.44      2.98      2.68      3.02      3.02      3.36      3.36
 4..................................................      2.79      2.39      3.25      2.55      3.25      2.88      3.46      3.46      4.36      4.36
 5..................................................      2.94      2.45      3.45      2.65      3.50      3.06      3.78      3.78      4.87      4.87

[[Page 39692]]

                                                                                                                                                        
 6..................................................      3.08      2.52      3.58      2.75      3.73      3.23      4.07      4.07      5.35      5.35
 7..................................................      3.20      2.58      3.69      2.84      3.95      3.39      4.35      4.35      5.79      5.79
 8..................................................      3.33      2.64      3.82      2.94      4.15      3.53      4.59      4.59      6.21      6.21
 9..................................................      3.44      2.69      3.91      3.01      4.36      3.67      4.84      4.84      6.60      6.60
10..................................................      3.55      2.75      4.03      3.10      4.54      3.80      5.06      5.06      6.97      6.97
11..................................................      3.64      2.80      4.12      3.17      4.71      3.93      5.27      5.27      7.31      7.31
12..................................................      3.71      2.85      4.23      3.25      4.88      4.05      5.47      5.47      7.64      7.64
13..................................................      3.78      2.91      4.32      3.32      5.04      4.15      5.66      5.66      7.94      7.94
14..................................................      3.84      2.95      4.41      3.39      5.18      4.27      5.84      5.84      8.23      8.23
15..................................................      3.90      3.00      4.49      3.45      5.33      4.37      6.02      6.02      8.50      8.50
16..................................................      3.97      3.05      4.56      3.51      5.47      4.47      6.18      6.18      8.77      8.77
17..................................................      4.02      3.09      4.65      3.58      5.61      4.56      6.34      6.34      9.01      9.01
18..................................................      4.07      3.13      4.72      3.63      5.74      4.65      6.49      6.49      9.26      9.26
19..................................................      4.12      3.17      4.81      3.70      5.86      4.74      6.63      6.63      9.48      9.48
20..................................................      4.19      3.22      4.88      3.75      5.98      4.82      6.76      6.76      9.69      9.69
21..................................................      4.23      3.25      4.94      3.80      6.10      4.91      6.89      6.89      9.91      9.91
22..................................................      4.28      3.29      5.02      3.86      6.20      4.98      7.02      7.02     10.11     10.11
23..................................................      4.33      3.33      5.08      3.91      6.32      5.07      7.15      7.15     10.30     10.30
24..................................................      4.38      3.37      5.14      3.95      6.42      5.14      7.26      7.26     10.48     10.48
25..................................................      4.43      3.41      5.20      4.00      6.53      5.21      7.38      7.38     10.66     10.66
26..................................................      4.47      3.44      5.27      4.05      6.62      5.28      7.49      7.49     10.83     10.83
27..................................................      4.52      3.48      5.33      4.10      6.73      5.35      7.59      7.59     10.99     10.99
28..................................................      4.56      3.51      5.38      4.14      6.82      5.42      7.70      7.70     11.15     11.15
29..................................................      4.62      3.55      5.45      4.19      6.91      5.49      7.80      7.80     11.31     11.31
30..................................................      4.67      3.59      5.50      4.23      7.01      5.55      7.89      7.89     11.46     11.46
31..................................................      4.71      3.62      5.56      4.28      7.10      5.60      7.99      7.99     11.60     11.60
32..................................................      4.75      3.65      5.62      4.32      7.18      5.67      8.08      8.08     11.74     11.74
33..................................................      4.80      3.69      5.67      4.36      7.27      5.73      8.17      8.17     11.88     11.88
34..................................................      4.84      3.72      5.72      4.40      7.35      5.78      8.25      8.25     12.00     12.00
35..................................................      4.88      3.75      5.77      4.44      7.42      5.84      8.34      8.34     12.13     12.13
36..................................................      4.91      3.78      5.82      4.48      7.51      5.89      8.43      8.43     12.26     12.26
37..................................................      4.95      3.81      5.88      4.52      7.58      5.94      8.50      8.50     12.38     12.38
38..................................................      4.99      3.84      5.93      4.56      7.65      6.00      8.59      8.59     12.49     12.49
39..................................................      5.04      3.88      5.98      4.60      7.73      6.05      8.66      8.66     12.60     12.60
40..................................................      5.08      3.91      6.02      4.63      7.80      6.10      8.73      8.73     12.72     12.72
41..................................................      5.12      3.94      6.08      4.68      7.87      6.16      8.80      8.80     12.82     12.82
42..................................................      5.16      3.97      6.12      4.71      7.95      6.20      8.87      8.87     12.92     12.92
43..................................................      5.20      4.00      6.16      4.74      8.01      6.25      8.95      8.95     13.03     13.03
44..................................................      5.25      4.04      6.21      4.78      8.08      6.29      9.01      9.01     13.12     13.12
45..................................................      5.28      4.06      6.25      4.81      8.14      6.34      9.08      9.08     13.22     13.22
46..................................................      5.32      4.09      6.31      4.85      8.21      6.39      9.14      9.14     13.31     13.31
47..................................................      5.36      4.12      6.36      4.89      8.27      6.43      9.20      9.20     13.40     13.40
48..................................................      5.40      4.15      6.40      4.92      8.33      6.48      9.27      9.27     13.50     13.50
49..................................................      5.43      4.18      6.44      4.95      8.39      6.52      9.33      9.33     13.58     13.58
50..................................................      5.47      4.21      6.47      4.98      8.46      6.56      9.38      9.38     13.67     13.67
51..................................................      5.51      4.24      6.53      5.02      8.52      6.60      9.45      9.45     13.75     13.75
52..................................................      5.54      4.26      6.57      5.05      8.57      6.65      9.50      9.50     13.83     13.83
53..................................................      5.58      4.29      6.60      5.08      8.63      6.69      9.55      9.55     13.91     13.91
54..................................................      5.62      4.32      6.64      5.11      8.69      6.73      9.61      9.61     13.99     13.99
55..................................................      5.66      4.35      6.68      5.14      8.75      6.76      9.67      9.67     14.06     14.06
56..................................................      5.69      4.38      6.73      5.18      8.80      6.81      9.72      9.72     14.13     14.13
57..................................................      5.72      4.40      6.77      5.21      8.85      6.85      9.77      9.77     14.21     14.21
58..................................................      5.76      4.43      6.81      5.24      8.91      6.88      9.82      9.82     14.28     14.28
59..................................................      5.80      4.46      6.85      5.27      8.96      6.92      9.87      9.87     14.35     14.35
60..................................................      5.82      4.48      6.89      5.30      9.01      6.96      9.93      9.93     14.42     14.42
61..................................................      5.88      4.52      6.94      5.34      9.06      7.00      9.97      9.97     14.49     14.49
62..................................................      5.90      4.54      6.98      5.37      9.11      7.03     10.02     10.02     14.55     14.55
63..................................................      5.94      4.57      7.01      5.39      9.17      7.07     10.07     10.07     14.61     14.61
64..................................................      5.97      4.59      7.05      5.42      9.22      7.10     10.12     10.12     14.68     14.68
65..................................................      6.01      4.62      7.09      5.45      9.27      7.14     10.16     10.16     14.74     14.74
66..................................................      6.03      4.64      7.14      5.49      9.31      7.18     10.20     10.20     14.81     14.81
67..................................................      6.08      4.68      7.18      5.52      9.36      7.21     10.25     10.25     14.86     14.86
68..................................................      6.11      4.70      7.20      5.54      9.41      7.24     10.30     10.30     14.92     14.92
69..................................................      6.15      4.73      7.24      5.57      9.46      7.27     10.34     10.34     14.98     14.98
70..................................................      6.18      4.75      7.28      5.60      9.50      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 DMCS section 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.                                     

[[Page 39693]]

                                                                                                                                                        
\4\ For each pickup stop, add $8.25.                                                                                                                    


                                 Standard Mail Rate Schedule 322.1C Parcel Post Subclass Destination BMC Rates (dollars)                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Zones1 & 2                Zone 3                  Zone 4                  Zone 5        
                     Weight (Pounds)                     -----------------------------------------------------------------------------------------------
                                                           Proposed     Current    Proposed     Current    Proposed     Current    Proposed     Current 
--------------------------------------------------------------------------------------------------------------------------------------------------------
2.......................................................        2.01        2.10        2.26        2.25        2.70        2.30        2.70        2.33
3.......................................................        2.18        2.22        2.67        2.44        3.02        2.74        3.36        3.00
4.......................................................        2.34        2.33        2.99        2.62        3.46        3.15        4.36        3.94
5.......................................................        2.49        2.42        3.28        2.79        3.78        3.45        4.87        4.40
6.......................................................        2.63        2.51        3.56        2.95        4.07        3.71        5.35        4.83
7.......................................................        2.75        2.60        3.82        3.09        4.35        3.97        5.79        5.22
8.......................................................        2.88        2.69        4.06        3.22        4.59        4.19        6.21        5.60
9.......................................................        3.00        2.76        4.30        3.35        4.84        4.42        6.60        5.95
10......................................................        3.11        2.84        4.52        3.47        5.06        4.62        6.97        6.29
11......................................................        3.21        2.91        4.67        3.59        5.27        4.82        7.31        6.59
12......................................................        3.32        2.98        4.81        3.70        5.47        5.00        7.64        6.89
13......................................................        3.41        3.05        4.93        3.79        5.66        5.17        7.94        7.16
14......................................................        3.50        3.11        5.08        3.91        5.84        5.34        8.23        7.42
15......................................................        3.60        3.17        5.20        4.00        6.02        5.51        8.50        7.67
16......................................................        3.68        3.23        5.32        4.09        6.18        5.65        8.77        7.91
17......................................................        3.76        3.29        5.43        4.18        6.34        5.80        9.01        8.13
18......................................................        3.85        3.34        5.54        4.26        6.49        5.94        9.26        8.35
19......................................................        3.92        3.41        5.64        4.34        6.63        6.07        9.48        8.55
20......................................................        4.00        3.45        5.75        4.42        6.76        6.19        9.69        8.74
21......................................................        4.08        3.50        5.85        4.50        6.89        6.31        9.91        8.94
22......................................................        4.15        3.56        5.94        4.57        7.02        6.43       10.11        9.12
23......................................................        4.22        3.61        6.05        4.65        7.15        6.55       10.30        9.30
24......................................................        4.30        3.64        6.14        4.72        7.26        6.65       10.48        9.46
25......................................................        4.36        3.69        6.21        4.78        7.38        6.77       10.66        9.62
26......................................................        4.42        3.74        6.31        4.85        7.49        6.87       10.83        9.78
27......................................................        4.48        3.79        6.38        4.91        7.59        6.96       10.99        9.92
28......................................................        4.55        3.83        6.47        4.98        7.70        7.06       11.15       10.07
29......................................................        4.61        3.87        6.57        5.05        7.80        7.16       11.31       10.21
30......................................................        4.66        3.91        6.63        5.10        7.89        7.24       11.46       10.35
31......................................................        4.72        3.96        6.70        5.15        7.99        7.33       11.60       10.48
32......................................................        4.78        4.00        6.79        5.22        8.08        7.42       11.74       10.61
33......................................................        4.84        4.04        6.85        5.27        8.17        7.50       11.88       10.73
34......................................................        4.89        4.08        6.92        5.32        8.25        7.58       12.00       10.84
35......................................................        4.94        4.11        6.99        5.38        8.34        7.66       12.13       10.96
36......................................................        5.00        4.15        7.05        5.42        8.43        7.75       12.26       11.08
37......................................................        5.05        4.19        7.11        5.47        8.50        7.81       12.38       11.19
38......................................................        5.10        4.23        7.19        5.53        8.59        7.90       12.49       11.29
39......................................................        5.14        4.27        7.24        5.57        8.66        7.96       12.60       11.39
40......................................................        5.19        4.30        7.31        5.62        8.73        8.03       12.72       11.50
41......................................................        5.25        4.35        7.38        5.68        8.80        8.09       12.82       11.59
42......................................................        5.29        4.38        7.44        5.72        8.87        8.16       12.92       11.68
43......................................................        5.34        4.40        7.49        5.76        8.95        8.23       13.03       11.79
44......................................................        5.38        4.44        7.54        5.80        9.01        8.29       13.12       11.87
45......................................................        5.42        4.47        7.61        5.85        9.08        8.36       13.22       11.96
46......................................................        5.47        4.51        7.67        5.90        9.14        8.41       13.31       12.04
47......................................................        5.52        4.55        7.72        5.94        9.20        8.47       13.40       12.13
48......................................................        5.56        4.58        7.77        5.98        9.27        8.53       13.50       12.22
49......................................................        5.60        4.61        7.83        6.02        9.33        8.59       13.58       12.29
50......................................................        5.64        4.64        7.88        6.06        9.38        8.64       13.67       12.38
51......................................................        5.68        4.68        7.93        6.10        9.45        8.70       13.75       12.45
52......................................................        5.73        4.71        8.00        6.15        9.50        8.75       13.83       12.52
53......................................................        5.77        4.73        8.05        6.19        9.55        8.80       13.91       12.60
54......................................................        5.81        4.76        8.09        6.22        9.61        8.86       13.99       12.67
55......................................................        5.85        4.79        8.13        6.25        9.67        8.91       14.06       12.74
56......................................................        5.89        4.83        8.19        6.30        9.72        8.96       14.13       12.80
57......................................................        5.93        4.86        8.24        6.34        9.77        9.01       14.21       12.88
58......................................................        5.97        4.89        8.28        6.37        9.82        9.06       14.28       12.94
59......................................................        6.01        4.92        8.33        6.41        9.87        9.10       14.35       13.01
60......................................................        6.05        4.95        8.39        6.45        9.93        9.16       14.42       13.07
61......................................................        6.08        4.99        8.42        6.48        9.97        9.20       14.49       13.14
62......................................................        6.12        5.02        8.46        6.51       10.02        9.25       14.55       13.19
63......................................................        6.15        5.04        8.52        6.55       10.07        9.29       14.61       13.25
64......................................................        6.19        5.07        8.55        6.58       10.12        9.34       14.68       13.31
65......................................................        6.23        5.10        8.61        6.62       10.16        9.38       14.74       13.37
66......................................................        6.27        5.14        8.66        6.66       10.20        9.42       14.81       13.43
67......................................................        6.30        5.17        8.70        6.69       10.25        9.47       14.86       13.48
68......................................................        6.34        5.19        8.74        6.72       10.30        9.51       14.92       13.54
69......................................................        6.37        5.21        8.76        6.74       10.34        9.55       14.98       13.59

[[Page 39694]]

                                                                                                                                                        
70......................................................        6.41        5.24        8.83        6.79       10.39        9.60       15.03       13.64
--------------------------------------------------------------------------------------------------------------------------------------------------------
Schedule 322.1C notes:                                                                                                                                  
\1\ For Barcoded Discount, deduct $0.04 per piece                                                                                                       
\2\ See DMCS section 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 $100 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.........................................................         1.60
 3.........................................................         1.72
 4.........................................................         1.84
 5.........................................................         1.94
 6.........................................................         2.04
 7.........................................................         2.12
 8.........................................................         2.22
 9.........................................................         2.31
10.........................................................         2.38
11.........................................................         2.46
12.........................................................         2.54
13.........................................................         2.60
14.........................................................         2.67
15.........................................................         2.74
16.........................................................         2.80
17.........................................................         2.86
18.........................................................         2.93
19.........................................................         2.98
20.........................................................         3.04
21.........................................................         3.11
22.........................................................         3.16
23.........................................................         3.21
24.........................................................         3.28
25.........................................................         3.32
26.........................................................         3.37
27.........................................................         3.42
28.........................................................         3.47
29.........................................................         3.52
30.........................................................         3.56
31.........................................................         3.61
32.........................................................         3.66
33.........................................................         3.70
34.........................................................         3.74
35.........................................................         3.78
36.........................................................         3.83
37.........................................................         3.87
38.........................................................         3.91
39.........................................................         3.95
40.........................................................         3.99
41.........................................................         4.04
42.........................................................         4.07
43.........................................................         4.11
44.........................................................         4.14
45.........................................................         4.18
46.........................................................         4.22
47.........................................................         4.26
48.........................................................         4.30
49.........................................................         4.33
50.........................................................         4.36
51.........................................................         4.40
52.........................................................         4.44
53.........................................................         4.47
54.........................................................         4.51
55.........................................................         4.54
56.........................................................         4.58
57.........................................................         4.61
58.........................................................         4.65
59.........................................................         4.68
60.........................................................         4.72
61.........................................................         4.74
62.........................................................         4.78
63.........................................................         4.80
64.........................................................         4.84
65.........................................................         4.87
66.........................................................         4.91
67.........................................................         4.94
68.........................................................         4.97
69.........................................................         5.00
70.........................................................         5.03
------------------------------------------------------------------------
Schedule 322.1D notes:                                                  
\1\ See DMCS section 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 $100.00 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.........................................................         1.37
 3.........................................................         1.44
 4.........................................................         1.48
 5.........................................................         1.54
 6.........................................................         1.59
 7.........................................................         1.63
 8.........................................................         1.69
 9.........................................................         1.73
10.........................................................         1.77
11.........................................................         1.80
12.........................................................         1.81
13.........................................................         1.83
14.........................................................         1.83
15.........................................................         1.84
16.........................................................         1.87
17.........................................................         1.87
18.........................................................         1.88
19.........................................................         1.89
20.........................................................         1.92
21.........................................................         1.92
22.........................................................         1.93
23.........................................................         1.95
24.........................................................         1.96
25.........................................................         1.98
26.........................................................         1.99
27.........................................................         2.01
28.........................................................         2.02
29.........................................................         2.05
30.........................................................         2.08
31.........................................................         2.09
32.........................................................         2.11
33.........................................................         2.13
34.........................................................         2.15
35.........................................................         2.16
36.........................................................         2.17
37.........................................................         2.19
38.........................................................         2.21
39.........................................................         2.24
40.........................................................         2.26
41.........................................................         2.28
42.........................................................         2.30
43.........................................................         2.32
44.........................................................         2.36
45.........................................................         2.37
46.........................................................         2.39
47.........................................................         2.42
48.........................................................         2.44
49.........................................................         2.46
50.........................................................         2.48
51.........................................................         2.51
52.........................................................         2.52
53.........................................................         2.55
54.........................................................         2.58
55.........................................................         2.60
56.........................................................         2.62
57.........................................................         2.64
58.........................................................         2.67
59.........................................................         2.69
60.........................................................         2.70
61.........................................................         2.75
62.........................................................         2.76
63.........................................................         2.79
64.........................................................         2.81
65.........................................................         2.84
66.........................................................         2.85
67.........................................................         2.89
68.........................................................         2.91
69.........................................................         2.94
70.........................................................         2.96
------------------------------------------------------------------------
Schedule 322.1E Notes:                                                  
\1\ See DMCS section 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.                         

[[Page 39695]]

                                                                        
\3\ A fee of $100.00 must be paid each year for DBMC, DSCF, and DDU.    


                                                 Standard Mail Rate Schedule 322.3A Bound Printed Matter Subclass Single Piece Rates * (dollars)                                                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Zones                                                                        
                                         -------------------------------------------------------------------------------------------------------------------------------------------------------
      Weight not exceeding (pounds)             Local               1&2                 3                  4                  5                  6                  7                  8        
                                         -------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current  Proposed  Current
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.5.....................................    $1.15     $1.20    $1.73     $1.65    $1.85     $1.75    $2.05     $1.91    $2.35     $2.15    $2.67     $2.40    $3.06     $2.71    $3.38     $2.97
2.......................................     1.17      1.22     1.77      1.68     1.90      1.79     2.12      1.96     2.46      2.23     2.82      2.51     3.24      2.85     3.61      3.14
2.5.....................................     1.19      1.25     1.85      1.73     2.00      1.86     2.27      2.07     2.67      2.39     3.10      2.73     3.61      3.14     4.05      3.49
3.......................................     1.21      1.28     1.92      1.79     2.10      1.94     2.41      2.18     2.89      2.56     3.39      2.95     3.98      3.43     4.49      3.83
3.5.....................................     1.23      1.31     2.00      1.84     2.21      2.01     2.56      2.29     3.10      2.72     3.67      3.17     4.35      3.71     4.93      4.18
4.......................................     1.26      1.34     2.07      1.90     2.31      2.09     2.70      2.40     3.32      2.89     3.96      3.39     4.72      4.00     5.38      4.52
4.5.....................................     1.28      1.37     2.15      1.95     2.41      2.16     2.85      2.51     3.53      3.05     4.24      3.61     5.09      4.29     5.82      4.87
5.......................................     1.30      1.40     2.23      2.00     2.51      2.24     3.00      2.62     3.74      3.21     4.53      3.83     5.46      4.58     6.26      5.22
6.......................................     1.33      1.43     2.30      2.06     2.61      2.31     3.14      2.73     3.96      3.38     4.81      4.05     5.83      4.87     6.71      5.56
7.......................................     1.35      1.46     2.38      2.11     2.72      2.39     3.29      2.84     4.17      3.54     5.10      4.27     6.20      5.15     7.15      5.91
8.......................................     1.37      1.49     2.45      2.17     2.82      2.46     3.43      2.95     4.39      3.71     5.38      4.49     6.57      5.44     7.59      6.25
9.......................................     1.40      1.53     2.53      2.22     2.92      2.54     3.58      3.06     4.60      3.87     5.67      4.71     6.94      5.73     8.04      6.60
10......................................     1.28      1.37     2.15      1.95     2.41      2.16     2.85      2.51     3.53      3.05     4.24      3.61     5.09      4.29     5.82      4.87
11......................................     1.30      N.A.     2.23      N.A.     2.51      N.A.     3.00      N.A.     3.74      N.A.     4.53      N.A.     5.46      N.A.     6.26      N.A.
12......................................     1.33      N.A.     2.30      N.A.     2.61      N.A.     3.14      N.A.     3.96      N.A.     4.81      N.A.     5.83      N.A.     6.71      N.A.
13......................................     1.35      N.A.     2.38      N.A.     2.72      N.A.     3.29      N.A.     4.17      N.A.     5.10      N.A.     6.20      N.A.     7.15      N.A.
14......................................     1.37      N.A.     2.45      N.A.     2.82      N.A.     3.43      N.A.     4.39      N.A.     5.38      N.A.     6.57      N.A.     7.59      N.A.
15......................................     1.40      N.A.     2.53      N.A.     2.92      N.A.     3.58      N.A.     4.60      N.A.     5.67      N.A.     6.94      N.A.     8.04      N.A.
Per piece rate..........................     1.05      1.06     1.39      1.41     1.39      1.41     1.39      1.41     1.39      1.41     1.39      1.41     1.39      1.41     1.39      1.41
Per pound rate..........................    0.023     0.031    0.076     0.054    0.102     0.075    0.146     0.110    0.214     0.164    0.285     0.220    0.370     0.288    0.443    0.346 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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)                                                   
----------------------------------------------------------------------------------------------------------------
                                          Per-piece \3\           Carrier route \2\             Per-pound       
               Zone                -----------------------------------------------------------------------------
                                      Proposed     Current      Proposed     Current      Proposed     Current  
----------------------------------------------------------------------------------------------------------------
Local.............................        0.523        0.530        0.456        0.467        0.012        0.023
1 and 2...........................        0.697        0.700        0.630        0.637        0.061        0.043
3.................................        0.697        0.700        0.630        0.637        0.087        0.063
4.................................        0.697        0.700        0.630        0.637        0.131        0.099
5.................................        0.697        0.700        0.630        0.637        0.198        0.152
6.................................        0.697        0.700        0.630        0.637        0.269        0.209
7.................................        0.697        0.700        0.630        0.637        0.355        0.277
8.................................        0.697        0.700        0.630        0.637        0.428       0.335 
----------------------------------------------------------------------------------------------------------------
Schedule 322.3B notes:                                                                                          
\1\ Includes both catalogs and similar bound printed matter.                                                    
\2\ Applies to mailings of at least 300 pieces presorted to carrier route as [prescribed] specified by the      
  Postal Service.                                                                                               
\3\ For Barcoded Discount, deduct $0.04 per-piece.                                                              


   Standard Mail Rate Schedules 323.1 & 323.2 Special and Library Rate  
                               Subclasses                               
------------------------------------------------------------------------
                                          Proposed rates   Current rates
         Schedule 323.1: Special              (cents)         (cents)   
------------------------------------------------------------------------
First Pound Not presorted \4\...........             124             124
    LEVEL A Presort (5-digits) \1\ \2\..              90              70
    LEVEL B Presort (BMC) \1\ \3\ \4\...             112             104
Each additional pound through 7 pounds..              51              50
Each additional pound over 7 pounds.....              21              31
Schedule 323.2: Library                    Proposed full                
                                           rates (cents)   Current full 
                                                           rates (cents)
First Pound.............................             144             112
Each additional pound through 7 pounds..              52              42
Each additional pound over 7 pounds.....              25             22 
------------------------------------------------------------------------
Schedule 323.1 notes:                                                   
\1\ A fee of [$85.00] $100.00 must be paid once each 12-month period for
  each permit.                                                          
\2\ For mailings of 500 or more pieces properly prepared and presorted  
  to five-digit destination ZIP Codes.                                  
\3\ For mailings of 500 or more pieces properly prepared and presorted  
  to Bulk Mail Centers.                                                 
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.                        


[[Page 39696]]


                               Periodicals Rate Schedule 421 Regular Subclass 1, 2                              
----------------------------------------------------------------------------------------------------------------
                                                                                          Current      Proposed 
                                                            Postage rate unit             rate \3\       rate   
                                                                                          (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising Portion.......................  Pound..............................         16.1         17.4
    Advertising Portion:.........................                                                               
    Delivery Office \4\..........................  Pound..............................         16.9         15.8
        SCF \5\..................................  Pound..............................         19.0         18.0
        1&2......................................  Pound..............................         21.4         20.3
        3........................................  Pound..............................         22.4         21.6
        4........................................  Pound..............................         25.1         25.1
        5........................................  Pound..............................         29.2         30.5
        6........................................  Pound..............................         33.6         36.1
        7........................................  Pound..............................         38.8         41.6
        8........................................  Pound..............................         43.2         47.4
    Science of Agriculture:......................                                                               
    Delivery Office..............................  Pound..............................         12.7         11.9
        SCF......................................  Pound..............................         14.3         13.5
        Zones 1&2................................  Pound..............................         16.1         15.2
Per Piece: Less Non Advertising Factor \6\.......  ...................................          5.7          5.9
    Required Preparation 7.......................  Piece..............................         24.0         26.3
    Presorted to 3-digit city/5-digit............  Piece..............................         20.2         N.A.
    Presorted to 3-digit.........................  Piece..............................         N.A.         21.7
    Presorted to 5-digit.........................  Piece..............................         N.A.         21.4
    Presorted to Carrier Route...................  Piece..............................         11.9         12.8
    Discounts:                                                                                                  
        Prepared to Delivery Office \4\..........  Piece..............................          2.1          2.3
        Prepared to SCF \5\......................  Piece..............................          1.1          1.2
        High Density \8\.........................  Piece..............................          0.8          1.2
        Saturation \9\...........................  Piece..............................          2.4          2.6
    Automation Discounts for Automation                                                                         
     Compatible Mail \10\                                                                                       
         From Required:                                                                                         
            Pre-barcoded letter size.............  Piece..............................          4.6          8.1
            Pre-barcoded flats...................  Piece..............................          3.1          4.2
        From 3/5 Digit:                                                                                         
            Pre-barcoded 3-digit letter size.....  Piece..............................          2.9         N.A.
            Pre-barcoded 5-digit letter size.....  Piece..............................          2.9         N.A.
            Pre-barcoded flats...................  Piece..............................          2.7         N.A.
        From 3 Digit:                                                                                           
            Pre-barcoded letter size.............  Piece..............................         N.A.          5.1
            Pre-barcoded flats...................  Piece..............................         N.A.          2.9
        From 5 Digit:                                                                                           
            Pre-barcoded letter size.............  Piece..............................         N.A.          5.2
            Pre-barcoded flats...................  Piece..............................         N.A.         2.8 
----------------------------------------------------------------------------------------------------------------
Schedule 421 notes:                                                                                             
\1\ The rates in this schedule also apply to commingled nonsubscriber, non-requester, complimentary, and sample 
  copies in excess of 10 percent allowance in regular-rate, non-profit, and classroom periodicals.              
\2\ Rates do not apply to otherwise regular rate mail that qualifies for the Within-County rates in Schedule    
  423.2.                                                                                                        
\3\ Charges are computed by adding the appropriate per-Piece charge to the sum of the nonadvertising portion and
  the advertising portion, as applicable.                                                                       
\4\ Applies to carrier route (including high density and saturation) mail delivered within the delivery area of 
  the originating post office.                                                                                  
\5\ Applies to mail delivered within the SCF area of the originating SCF office.                                
\6\ For postage calculations, multiply the proportion of nonadvertising content by this factor and subtract from
  the applicable piece rate.                                                                                    
[\7\ Mail presorted to 3-digit (other than 3-digit city), SCF, states, or mixed states.]                        
\7\ Mail not eligible for carrier-route, 5-digit or 3-digit rates.                                              
\8\ Applicable to high density mail, deducted from carrier route presort rate.                                  
\9\ Applicable to saturation mail, deducted from carrier route presort rate.                                    
\10\ For automation compatible mail meeting applicable Postal Service regulations.                              


       Periodicals Rate Schedule 423.2 Within County (Full Rates)       
------------------------------------------------------------------------
                                           Current Rate    Proposed Rate
                                              (cents)         (cents)   
------------------------------------------------------------------------
Per Pound:                                                              
    General.............................            12.6            13.1
    Delivery Office \1\.................            11.6            11.7
Per Piece:                                                              
    Required Presort....................             8.2             9.0
    Presorted to 3-digit................            N.A.             8.0
    Presorted to 5-digit................            N.A.             7.7
    Carrier Route.......................             4.4             4.5
    Presort.............................  ..............  ..............

[[Page 39697]]

                                                                        
Per Piece Discounts:                                                    
    Delivery Office \2\.................             0.3             0.4
    High Density (formerly 125 Piece)                                   
     \3\................................             0.5             0.5
    Saturation..........................             0.7             0.7
    Automation Discounts for Automation                                 
     Compatible Mail \4\                                                
        From Required:                                                  
            3-Digit Pre-barcoded Letter                                 
             size.......................             0.4            N.A.
            5-Digit Pre-barcoded Letter                                 
             size.......................             1.7            N.A.
            Pre-barcoded Letter size....            N.A.             2.7
            3/5-Digit Pre-barcoded Flats             1.5            N.A.
            Pre-barcoded Flat size......            N.A.             1.2
        From 3-digit:                                                   
            Pre-barcoded Letter size....            N.A.             1.9
            Pre-barcoded Flat size......            N.A.             1.4
        From 5-digit:                                                   
            Pre-barcoded Letter size....            N.A.             1.8
            Pre-barcoded Flat size......            N.A.            1.4 
------------------------------------------------------------------------
Schedule 432.2 notes:                                                   
\1\ Applicable only to the Pound charge of carrier route (including high
  density and saturation) presorted pieces to be delivered within the   
  delivery area of the originating post office.                         
\2\ Applicable only to carrier presorted pieces to be delivered within  
  the delivery area of the originating post office.                     
\3\ Applicable to high density mail, deducted from carrier route presort
  rate.                                                                 
\4\ For automation compatible pieces meeting applicable Postal Service  
  regulations.                                                          


     Periodicals, Rate Schedule 423.3, Publications of Authorized Nonprofit Organizations \10\ (Full Rates)     
----------------------------------------------------------------------------------------------------------------
                                                                                          Current      Proposed 
                                                            Postage rate unit             rate \1\     rate \1\ 
                                                                                          (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising portion.......................  Pound..............................         14.2         15.4
    Advertising portion: \9\                                                                                    
        Delivery Office \2\......................  Pound..............................         16.9         15.8
                                                   Pound..............................         19.0         18.0
        1&2......................................  Pound..............................         21.4         20.3
        3........................................  Pound..............................         22.4         21.6
        4........................................  Pound..............................         25.1         25.1
        5........................................  Pound..............................         29.2         30.5
        6........................................  Pound..............................         33.6         36.1
        7........................................  Pound..............................         38.8         41.6
        8........................................  Pound..............................         43.2         47.4
Per Piece: Less Nonadvertising Factor \4\........  ...................................          4.2          4.4
    Required Preparation \5\.....................  Piece..............................         21.9         24.4
    Presorted to 3-digit city/5-digit............  Piece..............................         17.4         N.A.
    Presorted to 3-digit.........................  Piece..............................         N.A.         18.5
    Presorted to 5-digit.........................  Piece..............................         N.A.         18.3
    Presorted to Carrier Route...................  Piece..............................         10.7         11.3
    Discount                                                                                                    
        Prepared to Delivery Office \2\..........  Piece..............................          1.2          1.2
        Prepared to SCF \3\......................  Piece..............................          0.6          0.6
        High Density (formerly 125-Piece) \6\....  Piece..............................          0.7          2.0
        Saturation \7\...........................  Piece..............................          2.1          3.3
    Automation Discounts for Automation                                                                         
     Compatible Mail \8\                                                                                        
        From Required:                                                                                          
            Pre-barcoded Letter size.............  Piece..............................          3.0          7.9
            Pre-barcoded Flats...................  Piece..............................          2.4          3.7
        From 3/5 Digit:                                                                                         
            3-Digit Pre-barcoded Letter size.....  Piece..............................          2.3         N.A.
            5-Digit Pre-barcoded Letter size.....  Piece..............................          2.3         N.A.
            Pre-barcoded Flats...................  Piece..............................          2.4         N.A.
        From 3-Digit:                                                                                           
            Pre-barcoded Letter size.............  Piece..............................         N.A.          2.9
            Pre-barcoded Flats...................  Piece..............................         N.A.          2.6
        From 5-Digit:                                                                                           
            Pre-barcoded Letter size.............  Piece..............................         N.A.          3.2
            Pre-barcoded Flats...................  Piece..............................         N.A.         2.8 
----------------------------------------------------------------------------------------------------------------
Schedule 423.3 notes:                                                                                           
\1\ Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and
  the advertising portion, as applicable.                                                                       
\2\ Applies to carrier route (including high density and saturation) mail delivered within the delivery area of 
  the originating post office.                                                                                  

[[Page 39698]]

                                                                                                                
\3\ Applies to mail delivered within the SCF area of the originating SCF office.                                
\4\ For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from 
  the applicable piece rate.                                                                                    
[\5\ Mail presorted to 3-digit (other than 3-digit city), SCF, states, or mixed states.]                        
\5\ Mail not eligible for carrier-route, 5-digit or 3-digit rates.                                              
\6\ Applicable to high density mail, deducted from carrier route presort rate.                                  
\7\ Applicable to saturation mail, deducted from carrier route presort rate.                                    
\8\ For automation compatible mail meeting applicable Postal Service regulations.                               
\9\ Not applicable to publications containing 10 percent or less advertising content.                           
\10\ If qualified, nonprofit publications may use Within-County rates for applicable portions of a mailing.     


                   Periodicals, Rate Schedule 423.4, Classroom Publications \10\ (Full Rates)                   
----------------------------------------------------------------------------------------------------------------
                                                                             Current     Oct 5 '97     Proposed 
                                                  Postage rate unit          rate \1\     rate \1\     rate \1\ 
                                                                             (cents)      (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising Portion................  Pound........................         11.3         14.2         15.4
    Advertising Portion:\9\                                                                                     
    Delivery Office \2\...................  Pound........................         18.0         16.9         15.8
        SCF \3\...........................  Pound........................         19.1         19.0         18.0
        1&2...............................  Pound........................         21.2         21.4         20.3
        3.................................  Pound........................         22.3         22.4         21.6
        4.................................  Pound........................         25.0         25.1         25.1
        5.................................  Pound........................         29.2         29.2         30.5
        6.................................  Pound........................         33.5         33.6         36.1
        7.................................  Pound........................         38.8         38.8         41.6
        8.................................  Pound........................         43.2         43.2         47.4
Per Piece: Less Nonadvertising Factor \4\.  .............................          3.5          4.2          4.4
    Required Preparation \5\..............  Piece........................         17.1         21.9         24.4
    Presorted to 3-digit city/5-digit.....  Piece........................         12.8         17.4         N.A.
    Presorted to 3-digit..................  Piece........................         N.A.         N.A.         18.5
    Presorted to 5-digit..................  Piece........................         N.A.         N.A.         18.3
    Presorted to Carrier Route............  Piece........................          9.0         10.7         11.3
    Discounts:                                                                                                  
        Prepared to Delivery Office \2\...  Piece........................          0.5          1.2          1.2
        Prepared to SCF...................  Piece........................          0.3          0.6          0.6
        High Density (formerly 125-Piece)   Piece........................          0.2          0.7          2.0
         \6\.                                                                                                   
        Saturation \7\....................  Piece........................          0.7          2.1          3.3
    Automation Discounts for Automation                                                                         
     Compatible Mail \8\                                                                                        
        From Required:                                                                                          
            ZIP+4 Letter size.............  Piece........................          0.7         N.A.         N.A.
            Pre-barcoded Letter size......  Piece........................          1.7          3.0          7.9
            Pre-barcoded Flats............  Piece........................          2.3          2.4          3.7
        From 3/5 Digit:                                                                                         
            ZIP+4 Letter size.............  .............................          0.4         N.A.         N.A.
            3-Digit Pre-barcoded Letter     Piece........................          1.0          2.3         N.A.
             size.                                                                                              
            5-Digit Pre-barcoded Letter     Piece........................          1.7          2.3         N.A.
             size.                                                                                              
            Pre-barcoded Flats............  Piece........................          1.5          2.4         N.A.
        From 3 Digit:                                                                                           
            Pre-barcoded Letter size......  Piece........................         N.A.         N.A.          2.9
            Pre-barcoded Flats............  Piece........................         N.A.         N.A.          2.6
        From 5 Digit:                                                                                           
            Pre-barcoded Letter size......  Piece........................         N.A.         N.A.          3.2
            Pre-barcoded Flats............  Piece........................         N.A.         N.A.         2.8 
----------------------------------------------------------------------------------------------------------------
Schedule 423.4 notes:                                                                                           
\1\ Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and
  the advertising portion, as applicable.                                                                       
\2\ Applies to carrier route (including 125-piece walk sequence and saturation) mail delivered within the       
  delivery area of the originating post office.                                                                 
\3\ Applies to mail delivered within the SCF area of the originating SCF office.                                
\4\ For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from 
  the applicable piece rate.                                                                                    
[\5\ Mail presorted to 3-digit (other than 3-digit city), SCF, states, or mixed states.]                        
\5\ Mail not eligible for carrier-route, 5-digit, or 3-digit rates.                                             
\6\ For walk sequenced mail in batches of 125 pieces or more from carrier route presorted mail.                 
\7\ Applicable to saturation mail; deducted from carrier route presort rate.                                    
\8\ For automation compatible mail meeting applicable Postal Service regulations.                               
\9\ Not applicable to publications containing 10 percent or less of advertising content.                        
\10\ If qualified, classroom publications may use Within-County rates for applicable portions of a mailing.     


                 Fee Schedule 911.--Address Corrections                 
------------------------------------------------------------------------
                                                        Fee             
               Description               -------------------------------
                                             Proposed         Current   
------------------------------------------------------------------------
Per manual correction...................           $0.50           $0.50

[[Page 39699]]

                                                                        
Per automated correction................             .20             .20
------------------------------------------------------------------------


             Fee Schedule 912.--Zip Coding of Mailing Lists             
------------------------------------------------------------------------
                                                        Fee             
                                         -------------------------------
                                             Proposed         Current   
------------------------------------------------------------------------
Per thousand addresses..................          $70.00          $60.00
------------------------------------------------------------------------
                       Correction of Mailing Lists                      
------------------------------------------------------------------------
Per submitted address...................           $0.20           $0.17
Minimum charge per list corrected.......           $7.00           $5.50
------------------------------------------------------------------------
    Address Changes for Election Boards and Registration Commissions    
------------------------------------------------------------------------
Per change of address...................           $0.20           $0.17
------------------------------------------------------------------------
   Corrections Associated With Arrangement of Address Cards in Carrier  
                            Delivery Sequence                           
------------------------------------------------------------------------
Per Correction..........................           $0.20           $0.17
------------------------------------------------------------------------
Note: When rural routes have been consolidated or changed to another    
  post office, no charge will be made for correction if the list        
  contains only names of persons residing on the route or routes        
  involved.                                                             


                                                 Fee Schedule 921, Post Office Boxes and Caller Service                                                 
                                                               I. Semi-annual Box Fees \1\                                                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                              Fee group                                                 
                                           -------------------------------------------------------------------------------------------------------------
               Box Size \2\                                                                                     D [& E                     E [\3\]      
                                                A       Current       B       Current       C       Current      \3\]     Current  ---------------------
                                             Proposed              Proposed              Proposed              Proposed              Proposed   Current 
--------------------------------------------------------------------------------------------------------------------------------------------------------
1.........................................     $35.00        $24     $30.00         22     $22.50        $20      $9.00      $6.00         $0       N.A.
2.........................................      52.50         37      45.00         33      32.50         29      15.00      10.00          0       N.A.
3.........................................      92.50         64      75.00         56      57.50         52      27.50      18.00          0       N.A.
4.........................................     162.50        121     145.00        109      97.50         86      40.00      26.50          0       N.A.
5.........................................     275.00        209     217.50        186     162.50        144      62.50      41.50          0      N.A. 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ A customer ineligible for carrier delivery may obtain a post office box at [no charge] Group E fees, subject to administrative decisions regarding  
  customer's proximity to post office.                                                                                                                  
\2\ Box Size 1 = under 296 cubic inches; 2 = 296-499 cubic inches; 3 = 500-999 cubic inches; 4 = 1000-1999 cubic inches; 5 = 2000 cubic inches and over.
                                                                                                                                                        
[\3\ Group E post office box customers subject to these fees are those eligible for carrier delivery.]                                                  


------------------------------------------------------------------------
                                                        Fee             
                Fee Group                -------------------------------
                                             Proposed         Current   
------------------------------------------------------------------------
II. Semi-annual Caller Service Fees:                                    
    A...................................            $275            $250
    B...................................            $275            $240
    C...................................            $275            $225
    D...................................            $275            $225
III. Annual Call Number Reservation Fee:                                
    (all applicable Fee Groups).........             $40             $30
------------------------------------------------------------------------


                  Fee Schedule 931, Business Reply Mail                 
------------------------------------------------------------------------
                                                         Fee \1\        
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Active business reply advance deposit account:                          
    Per piece:                                                          
        Pre-barcoded..........................           NA        $0.02
        Qualified.............................         0.06          .02
        Nonletter-size, using reverse manifest                          
         (experimental).......................          .02          .02

[[Page 39700]]

                                                                        
        Nonletter-size, using weight averaging                          
         (experimental).......................          .03          .03
        Other.................................          .08          .10
Payment of postage due charges if active                                
 business reply mail advance deposit account                            
 not used:                                                              
    Per piece.................................          .30          .44
Annual License and Accounting Fees:                                     
    Accounting Fee for Advance Deposit Account          300          205
    Permit fee (with or without Advance                                 
     Deposit Account).........................          100           85
Monthly Fees for customers using a reverse                              
 manifest or weight averaging for nonletter-                            
 size business reply:                                                   
    Nonletter-size, using reverse manifest                              
     (experimental)...........................        1,000        1,000
    Nonletter-size, using weight averaging                              
     (experimental)...........................        3,000        3,000
Set-up/Qualification fee for customers using a                          
 reverse manifest or weight averaging for                               
 nonletter-size business reply                                          
    Nonletter-size, using reverse manifest                              
     (experimental)...........................        1,000        1,000
    Nonletter-size, using weight averaging                              
     (experimental)...........................        3,000       3,000 
------------------------------------------------------------------------
\1\ Experimental per piece, monthly, and set-up/qualification fees are  
  applicable only to participants selected by the Postal Service for the
  nonletter-size business reply mail experiment. The experimental fees  
  expire June 7, 1999.                                                  


                  Fee Schedule 932, Merchandise Return                  
------------------------------------------------------------------------
                                                           Fee          
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
    Per Transaction:..........................                          
    Shipper must have an advance deposit                                
     account (see DMCS Schedule 1000).........        $0.30        $0.30
------------------------------------------------------------------------


                                     Fee Schedule 933, On-Site Meter Setting                                    
----------------------------------------------------------------------------------------------------------------
                                                                                                   Fee          
                                                                                       -------------------------
                                                                                          Proposed     Current  
----------------------------------------------------------------------------------------------------------------
First Meter...................................  By appointment                               $27.50       $27.50
                                                Unscheduled request                           31.00        31.00
Additional meters.............................  ......................................         4.00         3.25
Checking meter in or out of service (per        ......................................         8.50         7.50
 meter).                                                                                                        
----------------------------------------------------------------------------------------------------------------


                  Fee Schedule 934, Prepaid Reply Mail                  
------------------------------------------------------------------------
                                                                 Fee    
------------------------------------------------------------------------
Annual Permit Fee..........................................         $100
Monthly Accounting Fee.....................................        1,000
------------------------------------------------------------------------


                    Fee Schedule 941, Certified Mail                    
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                  Description                  -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Service (per mailpiece).......................        $1.55        $1.35
------------------------------------------------------------------------


                                        Fee Schedule 942, Registered Mail                                       
----------------------------------------------------------------------------------------------------------------
                                           Fees[\2\] (in addition to postage)                                   
     Declared value of article\1\     --------------------------------------------        Handling charge       
                                         Proposed              Current                                          
----------------------------------------------------------------------------------------------------------------
$0.00 to $100........................          N/A  $4.85 (without insurance)....  None.                        
0....................................         7.30  N.A..........................      Do.                      
0.00 to 100..........................          N/A  4.95 (with insurance)........      Do.                      
0.01 to 100..........................         7.45  N.A..........................      Do.                      
100.01 to 500........................         8.15  5.40.........................      Do.                      
500.01 to 1,000......................         8.85  5.85.........................      Do.                      
1,000.01 to 2,000....................         9.55  6.30.........................      Do.                      
2,000.01 to 3,000....................        10.25  6.75.........................      Do.                      

[[Page 39701]]

                                                                                                                
3,000.01 to 4,000....................        10.95  7.20.........................      Do.                      
4,000.01 to 5,000....................        11.65  7.65.........................      Do.                      
5,000.01 to 6,000....................        12.35  8.10.........................      Do.                      
6,000.01 to 7,000....................        13.05  8.55.........................      Do.                      
7,000.01 to 8,000....................        13.75  9.00.........................      Do.                      
8,000.01 to 9,000....................        14.45  9.45.........................      Do.                      
9,000.01 to 10,000...................        15.15  9.90.........................      Do.                      
10,000.01 to 11,000..................        15.85  10.35........................      Do.                      
11,000.01 to 12,000..................        16.55  10.80........................      Do.                      
12,000.01 to 13,000..................        17.25  11.25........................      Do.                      
13,000.01 to 14,000..................        17.95  11.70........................      Do.                      
14,000.01 to 15,000..................        18.65  12.15........................      Do.                      
15,000.01 to 16,000..................        19.35  12.60........................      Do.                      
16,000.01 to 17,000..................        20.05  13.05........................      Do.                      
17,000.01 to 18,000..................        20.75  13.50........................      Do.                      
18,000.01 to 19,000..................        21.45  13.95........................      Do.                      
19,000.01 to 20,000..................        22.15  14.40........................      Do.                      
20,000.01 to 21,000..................        22.85  14.85........................      Do.                      
21,000.01 to 22,000..................        23.55  15.30........................      Do.                      
22,000.01 to 23,000..................        24.25  15.75........................      Do.                      
23,000.01 to 24,000..................        24.95  16.20........................      Do.                      
24,000.01 to 25,000..................        25.65  16.65........................      Do.                      
25,000.01 to $1 million..............        25.65  16.65........................  Plus [45] 70 cents for each  
                                                                                    $1,000 (or fraction thereof)
                                                                                    over $25,000.               
Over $1 million to $15 million.......       708.15  455.40.......................  Plus [45] 70 cents for each  
                                                                                    $1,000 (or fraction thereof)
                                                                                    over $1 million.            
Over $15 million.....................    10,508.15  6,755.40.....................  Plus Amount determined by the
                                                                                    Postal Service based on     
                                                                                    weight, space and value.    
----------------------------------------------------------------------------------------------------------------
\1\ Articles with a declared value of more than $25,000 can be registered, but compensation for loss or damage  
  is limited to $25,000.                                                                                        
\2\ Fees for articles with declared values of more than $100 include insurance.                                 


                                         Fee Schedule 943, Insured Mail                                         
----------------------------------------------------------------------------------------------------------------
      Document reconstruction coverage                           Fee (in addition to postage)                   
----------------------------------------------------------------------------------------------------------------
                                         Part a--Express Mail Insurance                                         
                                                                                                                
$0.01 to $500...............................  No charge.                                                        
----------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 Fee (in addition to postage)                                           
     [Declared Value] Coverage      --------------------------------------------------------------------------------------------------------------------
                                                              Proposed                                                   Current                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Merchandise:                                                                                                                                            
    $0.01 to $ 500.................  No charge................................................  No charge.                                              
    500.01 to 5000.................  $1.00 for each $100 (or fraction thereof) over $500 in     $0.90 for each $100 (or fraction thereof) over $500 in  
                                      value.                                                     value.                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               Fee\1\ (in addition to postage)                                          
     [Declared Value] Coverage      --------------------------------------------------------------------------------------------------------------------
                                                              Proposed                                                   Current                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                Part b--General Insurance                                                               
$0.01 to $50.......................  $0.95....................................................  $0.75.                                                  
50.01 to $100......................  1.90.....................................................  1.60.                                                   
100.1 to $5000.....................  1.90 plus $1.00 for each $100 (or fraction thereof) over   1.60 plus $0.90 for each $100 (or fraction thereof) in  
                                      $100 in [declared value] coverage.                         declared value.                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ For bulk insurance, deduct $0.40 per piece.                                                                                                         


                  Fee Schedule 944, Collect on Delivery                 
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Amount to be collected, or insurance coverage                           
 desired:                                                               
    $0.01 to $50..............................        $4.00        $3.50

[[Page 39702]]

                                                                        
    50.01 to 100..............................         5.00         4.50
    100.01 to 200.............................         6.00         5.50
    200.01 to 300.............................         7.00         6.50
    300.01 to 400.............................         8.00         7.50
    400.01 to 500.............................         9.00         8.50
    500.01 to 600.............................        10.00         9.50
Notice of nondelivery of COD..................         3.00         2.80
Alteration of COD charges or designation of                             
 new addressee................................         3.00         2.80
Registered COD................................         4.00         3.50
------------------------------------------------------------------------


                    Fee Schedule 945, Return Receipts                   
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                  Description                  -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Receipt Issued at Time of Mailing: \1\                                  
    Items other than Merchandise..............        $1.45        $1.10
    Merchandise (without another special                                
     service).................................         1.70         1.20
Receipt Issued after Mailing \2\..............         7.00        6.60 
------------------------------------------------------------------------
\1\ This receipt shows the signature of the person to whom the mailpiece
  was delivered, the date of delivery and the delivery address, if such 
  address is different from the address on the mailpiece.               
\2\ This receipt shows to whom the mailpiece was delivered and the date 
  of delivery.                                                          


                  Fee Schedule 946, Restricted Delivery                 
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Per Piece.....................................        $2.75        $2.75
------------------------------------------------------------------------


                Fee Schedule 947, Certificate of Mailing                
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Individual pieces:                                                      
    Original certificate of mailing for listed                          
     pieces of all classes of ordinary mail                             
     (per piece)..............................        $0.60        $0.55
    Three or more pieces individually listed                            
     in a firm mailing book or an approved                              
     customer provided manifest (per piece)...          .25          .20
    Each additional copy of original                                    
     certificate of mailing or original                                 
     mailing receipt for registered, insured,                           
     certified, and COD mail (each copy)......          .60          .55
Bulk pieces:                                                            
Identical pieces of First-Class and Single                              
 Piece, Regular, Enhanced Carrier Route,                                
 Nonprofit, and Nonprofit Enhanced Carrier                              
 Route Standard Mail paid with ordinary                                 
 stamps, precanceled stamps, or meter stamps                            
 are subject to the following fees:                                     
    Up to 1,000 pieces (one certificate for                             
     total number)............................         3.00         2.75
    Each additional 1,000 pieces or fraction..          .40          .35
    Duplicate copy............................          .60          .55
------------------------------------------------------------------------


                 Fee Schedule 948, Delivery Confirmation                
------------------------------------------------------------------------
                                                               Fee (in  
                          Service                            addition to
                                                               postage) 
------------------------------------------------------------------------
Used in Conjunction with Priority Mail:                                 
    Electronic.............................................        $0.00
    Manual.................................................         0.35
Used in Conjunction with Parcel Post, Bound Printed Matter,             
 Library, and Special Standard Mail:                                    
    Electronic.............................................         0.25

[[Page 39703]]

                                                                        
    Manual.................................................         0.60
------------------------------------------------------------------------


                    Fee Schedule 951, Parcel Air Lift                   
------------------------------------------------------------------------
                                                   Fee (In addition to  
                                                  Parcel Post postage)  
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Up to 2 pounds................................        $0.45        $0.40
Over 2 up to 3 pounds.........................         0.85         0.75
Over 3 up to 4 pounds.........................         1.30         1.15
Over 4 pounds.................................         1.75         1.55
------------------------------------------------------------------------


                   Fee Schedule 952, Special Handling                   
------------------------------------------------------------------------
                                                   Fee (In addition to  
                                                        postage)        
                                               -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Not more than 10 pounds.......................       $17.25        $5.40
More than 10 pounds...........................        24.00         7.50
------------------------------------------------------------------------


                                       Fee Schedule 961, Stamped Envelopes                                      
----------------------------------------------------------------------------------------------------------------
                                                                                           Fee (in addition to  
                                                                                                postage)        
                                                              Description              -------------------------
                                                                                          Proposed     Current  
----------------------------------------------------------------------------------------------------------------
Single Sale....................................  .....................................        $0.07        $0.06
Single Sale Hologram...........................  .....................................         0.08         0.06
Plain Bulk (500) #6\3/4\ size:.................  Regular                                       8.50         8.20
                                                  Window                                       8.50         9.00
Printed Bulk (500) #6\3/4\ size                  Regular                                      14.00        12.60
                                                 Window                                       14.00        13.40
Banded (500) #6\3/4\ size......................  .....................................         9.50         8.20
Plain Bulk (500) size > #6\3/4\ through #10....  Regular                                      11.50        12.00
                                                 Window                                       11.50        13.00
Printed Bulk (500) size > #6\3/4\ through #10..  Regular                                      15.00        16.40
                                                 Window                                       15.00        17.40
                                                 Savings Bond                                 15.00        15.00
                                                 Hologram                                     19.00        16.40
Banded (500) size > #6\3/4\ through #10:         .....................................        12.00        13.00
Multi-Color Printing (500) #6\3/4\ size\1\.....  .....................................        14.00        10.50
  #10 size\1\                                    .....................................        15.00        15.00
Printing Charge per 500 Envelopes (for each                                                                     
 type of printed envelope):                                                                                     
    Minimum Order (500 envelopes)..............  .....................................         N.A.         4.40
    Order for 1,000 or more envelopes..........  .....................................         N.A.         4.40
Double Window (500)--size > #6\3/4\ through      .....................................        11.50        15.00
 #10\1\.                                                                                                        
Household (50): size #6\3/4\...................  Regular                                       3.00         3.00
                                                 Window                                        3.00         3.10
    Size > #6\3/4\ through #10.................  Regular                                       3.25         3.20
                                                 Window                                        3.25         3.30
                                                 Hologram                                      3.50         3.20
----------------------------------------------------------------------------------------------------------------
Notes:                                                                                                          
\1\ Fee for precancelled envelopes is the same.                                                                 


                     Fee Schedule 962, Stamped Cards                    
------------------------------------------------------------------------
                                                   Fee (in addition to  
                                                        postage)        
                  Description                  -------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Stamped Card..................................        $0.02        $0.00

[[Page 39704]]

                                                                        
Double Stamped Card...........................         0.04         0.00
------------------------------------------------------------------------


                     Fee Schedule 971, Money Orders                     
------------------------------------------------------------------------
                                                  Proposed     Current  
------------------------------------------------------------------------
Domestic:                                                               
    $0.01 to $700.............................        $0.85        $0.85
APO-FPO:                                                                
    $0.01 to $700.............................         0.30         0.30
Inquiry Fee, which includes the issuance of                             
 copy of a paid money order...................         2.75         2.75
------------------------------------------------------------------------


                              Schedule 1000                             
------------------------------------------------------------------------
                     Fees                         Proposed     Current  
------------------------------------------------------------------------
First-Class Presorted Mailing [Fee]...........      $100.00       $85.00
Periodicals [Fees]                                                      
    A. Original Entry.........................       305.00       305.00
    B. Additional Entry.......................        50.00        85.00
    C. Re-entry...............................        50.00        50.00
    D. Registration for News Agents...........        50.00        50.00
Regular, Enhanced Carrier Route, Nonprofit,                             
 and Nonprofit Enhanced Carrier Route Standard                          
 Mail Bulk Mailing [Fee]......................       100.00        85.00
Parcel Post: Destination BMC, SCF, and DDU....       100.00        85.00
Special Standard Mail Presorted Mailing [Fee].       100.00        85.00
Authorization to Use Permit Imprint...........       100.00        85.00
Merchandise Return (per facility receiving                              
 merchandise return labels)...................       100.00        85.00
Business Reply Mail Permit (see Fee Schedule                            
 932).........................................  ...........        85.00
------------------------------------------------------------------------

Phasing Schedules

   Summary of Proposed Rates for Phasing Schedule, Standard Mail Rate   
         Schedule 321.4A, Nonprofit Subclass, Presort Categories        
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                   Step 5       Step 6  
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic.................................         16.0         16.5
        3/5-Digit.............................         13.8         14.3
    Destination Entry Discount per Piece                                
        BMC...................................          1.5          1.5
        SCF...................................          1.8          1.8
Non-Letter Size:                                                        
    Piece Rate                                                          
        Minimum per Piece                                               
            Basic.............................         23.4         23.9
            3/5-Digit.........................         17.1         17.6
        Destination Entry Discount per Piece                            
            BMC...............................          1.5          1.5
            SCF...............................          1.8          1.8
    Pound Rate                                         55.0         55.0
        Plus per Piece Rate                                             
            Basic.............................         12.1         12.6
            3/5-Digit.........................          5.8          6.3
        Destination Entry Discount per Pound                            
            BMC...............................          7.2          7.2
            SCF...............................          8.8          8.8
------------------------------------------------------------------------


[[Page 39705]]


   Summary of Proposed Rates for Phasing Schedule, Standard Mail Rate   
       Schedule 321.4B, Nonprofit Subclass, Automation Categories       
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                   Step 5       Step 6  
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic Letter..........................         11.9         12.4
        3-Digit Letter........................         10.7         11.2
        5-Digit Letter........................          9.0          9.5
    Destination Entry Discount per Piece                                
        BMC...................................          1.5          1.5
        SCF...................................          1.8          1.8
Flat Size:                                                              
    Piece Rate                                                          
        Minimum per Piece                                               
            Basic Flat........................         18.5         19.0
            3/5-Digit.........................         15.0         15.5
        Destination Entry Discount per Piece                            
            BMC...............................          1.5          1.5
            SCF...............................          1.8          1.8
    Pound Rate                                         55.0         55.0
        Plus per Piece Rate                                             
            Basic Flat........................          7.2          7.7
            3/5-Digit Flat....................          3.7          4.2
        Destination Entry Discount per Pound                            
            BMC...............................          7.2          7.2
            SCF...............................          8.8          8.8
------------------------------------------------------------------------


   Summary of Proposed Rates for Phasing Schedule, Standard Mail Rate   
        Schedule 321.5, Nonprofit Enhanced Carrier Route Subclass       
------------------------------------------------------------------------
                                                      Rate (cents)      
                                               -------------------------
                                                   Step 5       Step 6  
------------------------------------------------------------------------
Letter Size:                                                            
    Piece Rate                                                          
        Basic.................................          N/A          9.6
        Basic Automated Letter................          8.7          9.2
        High Density..........................          7.3          7.8
        Saturation............................          6.7          7.2
    Destination Entry Discount per Piece                                
        BMC...................................          1.5          1.5
        SCF...................................          1.8          1.8
        DDU...................................          2.3          2.3
Non-Letter Size:*                                                       
    Piece Rate                                                          
        Minimum per Piece                                               
            Basic.............................          N/A          9.6
            High Density......................          N/A          8.6
            Saturation........................          N/A          8.0
        Destination Entry Discount per Piece                            
            BMC...............................          1.5          1.5
            SCF...............................          1.8          1.8
            DDU...............................          2.3          2.3
    Pound Rate                                         35.0         35.0
        Plus per Piece Rate                                             
            Basic.............................          N/A          2.4
            High Density......................          N/A          1.4
            Saturation........................          N/A          0.8
        Destination Entry Discount per Pound                            
            BMC...............................          7.2          7.2
            SCF...............................          8.8          8.8
            DDU...............................         11.0         11.0
------------------------------------------------------------------------
*It is anticipated that in order to comply with 39 U.S.C. Section       
  3642(d), phased rates will not be implemented for the cells marked N/ 
  A. Full rates would apply for these cells.                            


[[Page 39706]]


 Summary of Proposed Rates for Phasing Schedule Schedule 323.2: Library 
------------------------------------------------------------------------
                                                  Proposed     Proposed 
                                                   step 5       step 6  
                                                   rates        rates   
                                                  (cents)      (cents)  
------------------------------------------------------------------------
First Pound...................................          144          144
Each additional pound through 7 pounds........           47           52
Each additional pound over 7 pounds...........           24           25
------------------------------------------------------------------------


  Summary of Proposed Rates for Phasing Schedule, Rate Schedule 423.2,  
                              Within County                             
                        [Step 5 and Step 6 Rates]                       
------------------------------------------------------------------------
                                                  Phase 5      Phase 6  
                                                    rate         rate   
                                                  (cents)      (cents)  
------------------------------------------------------------------------
Per pound:                                                              
    General...................................         13.0         13.1
    Delivery Office \1\.......................         11.7         11.7
Per piece:                                                              
    Required Presort..........................          9.0          9.0
    Presorted to 3-digit......................          7.9          8.0
    Presorted to 5-digit......................          7.6          7.7
    Carrier Route Presort.....................          4.4          4.5
Per piece discounts:                                                    
    Delivery Office \2\.......................          0.4          0.4
    High Density (formerly 125 piece) \3\.....          0.4          0.5
    Saturation................................          0.6          0.7
    Automation Discounts for Automation                                 
     Compatible Mail \4\                                                
        From Required:                                                  
            Pre-barcoded Letter size..........          2.8          2.7
            Pre-barcoded Flat size............          1.3          1.2
        From 3-digit:                                                   
            Pre-barcoded Letter size..........          1.9          1.9
            Pre-barcoded Flat size............          1.3          1.4
        From 5-digit:                                                   
            Pre-barcoded Letter size..........          1.8          1.8
            Pre-barcoded Flat size............          1.4         1.4 
------------------------------------------------------------------------
Schedule 432.2 notes:                                                   
\1\ Applicable only to the pound charge of carrier route (including high
  density and saturation) presorted pieces to be delivered within the   
  delivery area of the originating post office.                         
\2\ Applicable only to carrier presorted pieces to be delivered within  
  the delivery area of the originating post office.                     
\3\ Applicable to high density mail, deducted from carrier route presort
  rate.                                                                 
\4\ For automation compatible pieces meeting applicable Postal Service  
  regulations.                                                          


   Summary of Proposed Rates for Phasing Schedule, Periodicals Rate Schedule 423.3, Publications of Authorized  
                                          Nonprofit Organizations \10\                                          
                                            [Step 5 and Step 6 Rates]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                          Phase 5      Phase 6  
                                                           Postage rate unit              rate \1\       rate   
                                                                                          (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per pound:                                                                                                      
    Nonadvertising portion:....................  Pound................................         15.3         15.4
    Advertising portion: \9\                                                                                    
        Delivery Office \2\....................  Pound................................         15.8         15.8
        SCF \3\................................  Pound................................         18.0         18.0
        1&2....................................  Pound................................         20.3         20.3
        3......................................  Pound................................         21.6         21.6
        4......................................  Pound................................         25.1         25.1
        5......................................  Pound................................         30.5         30.5
        6......................................  Pound................................         36.1         36.1
        7......................................  Pound................................         41.6         41.6
        8......................................  Pound................................         47.4         47.4
Per piece: Less Nonadvertising Factor \4\......    ...................................          4.4          4.4
    Required Preparation \5\...................  Piece................................         24.3         24.4
    Presorted to 3-digit.......................  Piece................................         18.4         18.5
    Presorted to 5-digit.......................  Piece................................         18.2         18.3
    Presorted to Carrier Route.................  Piece................................         11.2         11.3
    Discounts:                                                                                                  
        Prepared to Delivery Office \2\........  Piece................................          1.2          1.2
        Prepared to SCF........................  Piece................................          0.6          0.6
        High Density (formerly 125-Piece) \6\..  Piece................................          2.0          2.0

[[Page 39707]]

                                                                                                                
        Saturation \7\.........................  Piece................................          3.3          3.3
    Automation Discounts for Automation                                                                         
     Compatible Mail \8\ From Required:                                                                         
        Pre-barcoded Letter size...............  Piece................................          7.9          7.9
        Pre-barcoded Flats.....................  Piece................................          3.7          3.7
    From 3-Digit:                                                                                               
        Pre-barcoded Letter size...............  Piece................................          2.9          2.9
        Pre-barcoded Flats.....................  Piece................................          2.6          2.6
    From 5-Digit:                                                                                               
        Pre-barcoded Letter size...............  Piece................................          3.2          3.2
        Pre-barcoded Flats.....................  Piece................................          2.8         2.8 
----------------------------------------------------------------------------------------------------------------
Schedule 423.3 notes:                                                                                           
\1\ Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and
  the advertising portion, as applicable.                                                                       
\2\ Applies to carrier route (including high density and saturation) mail delivered within the delivery area of 
  the originating post office.                                                                                  
\3\ Applies to mail delivered within the SCF area of the originating SCF office.                                
\4\ For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from 
  the applicable piece rate.                                                                                    
[\5\ Mail presorted to 3-digit (other than 3-digit city), SCF, states, or mixed states.]                        
\5\ Mail not eligible for carrier-route, 5-digit or 3-digit rates.                                              
\6\ Applicable to high density mail, deducted from carrier route presort rate.                                  
\7\ Applicable to saturation mail, deducted from carrier route presort rate.                                    
\8\ For automation compatible mail meeting applicable Postal Service regulations.                               
\9\ Not applicable to publications containing 10 percent or less advertising content.                           
\10\ If qualified, nonprofit publications may use Within-County rates for applicable portions of a mailing.     


  Summary of Proposed Rates for Phasing Schedule, Periodicals Rate Schedule 423.4, Classroom Publications \10\  
                                            [Step 5 and Step 6 Rates]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                          Phase 5      Phase 6  
                                                           Postage rate unit              rate \1\       rate   
                                                                                          (cents)      (cents)  
----------------------------------------------------------------------------------------------------------------
Per Pound:                                                                                                      
    Nonadvertising Portion:...................  Pound.................................         15.3         15.4
    Advertising Portion: \9\                                                                                    
        Delivery Office \2\...................  Pound.................................         15.8         15.8
        SCF \3\...............................  Pound.................................         18.0         18.0
        1&2...................................  Pound.................................         20.3         20.3
        3.....................................  Pound.................................         21.6         21.6
        4.....................................  Pound.................................         25.1         25.1
        5.....................................  Pound.................................         30.5         30.5
        6.....................................  Pound.................................         36.1         36.1
        7.....................................  Pound.................................         41.6         41.6
        8.....................................  Pound.................................         47.4         47.4
Per piece: Less Nonadvertising Factor \4\.....    ....................................          4.4          4.4
    Required Preparation \5\..................  Piece.................................         24.3         24.4
    Presorted to 3-digit......................  Piece.................................         18.4         18.5
    Presorted to 5-digit......................  Piece.................................         18.2         18.3
    Presorted to Carrier Route................  Piece.................................         11.2         11.3
    Discounts:                                                                                                  
        Prepared to Delivery Office \2\.......  Piece.................................          1.2          1.2
        Prepared to SCF.......................  Piece.................................          0.6          0.6
        High Density (formerly 125-Piece) \6\.  Piece.................................          2.0          2.0
        Saturation \7\........................  Piece.................................          3.3          3.3
    Automation Discounts for Automation                                                                         
     Compatible Mail \8\                                                                                        
        From Required:                                                                                          
            Pre-barcoded Letter size..........  Piece.................................          7.9          7.9
            Pre-barcoded Flats................  Piece.................................          3.7          3.7
        From 3 Digit:                                                                                           
            Pre-barcoded Letter size..........  Piece.................................          2.9          2.9
            Pre-barcoded Flats................  Piece.................................          2.6          2.6
        From 5 Digit:                                                                                           
            Pre-barcoded Letter size..........  Piece.................................          3.2          3.2
            Pre-barcoded Flats................  Piece.................................          2.8         2.8 
----------------------------------------------------------------------------------------------------------------
Schedule 423.4 notes:                                                                                           
\1\ Charges are computed by adding the appropriate per-piece charge to the sum of the nonadvertising portion and
  the advertising portion, as applicable.                                                                       

[[Page 39708]]

                                                                                                                
\2\ Applies to carrier route (including 125-piece walk sequence and saturation) mail delivered within the       
  delivery area of the originating post office.                                                                 
\3\ Applies to mail delivered within the SCF area of the originating SCF office.                                
\4\ For postage calculation, multiply the proportion of nonadvertising content by this factor and subtract from 
  the applicable piece rate.                                                                                    
[\5\ Mail presorted to 3-digit (other than 3-digit city), SCF, states, or mixed states.]                        
5 Mail not eligible for carrier-route, 5-digit or 3-digit rates.                                                
\6\ For walk sequenced mail in batches of 125 pieces or more from carrier route presorted mail.                 
\7\ Applicable to saturation mail, deducted from carrier route presort rate.                                    
\8\ For automation compatible mail meeting applicable Postal Service regulations.                               
\9\ Not applicable to publications containing 10 percent or less of advertising content.                        
\10\ If qualified, classroom publications may use Within-County rates for applicable portions of a mailing.     

Attachment C--Hearing Schedule: Postal Rate and Fee Changes

July 30, 1997--First Prehearing Conference
September 3, 1997--Identify expected amount of oral cross-examination. 
Report on the availability of witnesses
September 3, 1997--Completion of discovery on the Postal Service's 
direct case
September 22-October 1 and October 6-10, 1997--Hearings for cross-
examination of the Postal Service's direct case (9:30 a.m. in the 
Commission hearing room)
October 20, 1997--Filing of the case-in-chief of each participant, 
including rebuttal to the Postal Service
November 19, 1997--Identify expected amount of oral cross-examination. 
Report on the availability of witnesses
November 18, 1997--Completion of discovery directed to intervenors and 
the OCA
December 8-23, 1997--Evidentiary hearings on the cases-in-chief of 
intervenors and the OCA (9:30 a.m. in the Commission hearing room)
December 23, 1997--Completion of discovery directed to the Service
January 12, 1998--Filing of evidence in rebuttal to the cases-in-chief 
of participants other than the Postal Service (no discovery permitted 
on this rebuttal evidence; only oral cross-examination)
January 21-30, 1998--Hearings on rebuttal to participants' direct 
evidence (9:30 a.m. in the Commission hearing room)
February 12, 1998--Filing of initial briefs
February 23, 1998--Filing of reply briefs
February 26-27, 1998--Oral argument

Attachment D--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 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, unless good cause is shown. 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. Oppositions to motions for designation and/or requests for 
counter-designations shall be filed within 14 days. Oppositions to 
requests for counter-designations are due within 7 days. At the time 
requests for designations and counter-designations are made, the moving 
participant must submit two copies of the identified material to the 
Secretary of the Commission.

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 a more responsive answer, or an answer to 
an interrogatory or request for admission to which an objection was 
interposed, if the objection is overruled. Motions to compel should be 
filed within 14 days of the answer or objection to the discovery 
request. The text of the discovery request, and any answer provided, 
should be provided in the text or as an attachment to the motion to 
compel.
    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 14 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.

[[Page 39709]]

    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, 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. 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, the Postal Service, and 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.
    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.

[FR Doc. 97-19230 Filed 7-22-97; 8:45 am]
BILLING CODE 7710-FW-D