[Federal Register Volume 62, Number 143 (Friday, July 25, 1997)]
[Rules and Regulations]
[Pages 39946-39950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-19640]


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

POSTAL SERVICE

39 CFR Part 111


Changes in Preferred Postage Rates--Periodicals and Standard Mail 
(A)

AGENCY: Postal Service.

ACTION: Postage rate changes.

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

SUMMARY: Public Law 103-123 authorizes annual changes in the reduced 
rates formerly financed by appropriations for revenue forgone. This 
action implements these changes for FY 1998.

EFFECTIVE DATE: The changes pertaining to postage rates will be 
implemented effective 12:01 a.m., Sunday, October 5, 1997.

FOR FURTHER INFORMATION CONTACT: Patricia Bennett, (202) 268-6350 or 
Thomas DeVaughan, (202) 268-4491.

SUPPLEMENTARY INFORMATION: Under 39 U.S.C. 3626(a) and 3642, the Postal 
Service is authorized to make annual adjustments in the Periodicals 
Preferred In-County per piece rates, the nonadvertising pound rates and 
per piece rates for Preferred Nonprofit publications, the 
nonadvertising pound rates and the per piece rates for Preferred 
Classroom publications; and postal rates for Nonprofit Standard Mail, 
Nonprofit Enhanced Carrier Route Standard Mail, and Library Mail. These 
adjustments are necessary to phase up the institutional-costs 
contribution of this mail to the levels required by law by FY 1999.
    The rates for Periodicals Science-of-Agriculture publications zones 
1 and 2 will remain the same at 75 percent of the rates charged on 
advertising in regular-rate publications, as specified by law. These 
rates will not change until regular Periodicals advertising rates 
change through a general rate case.
    On June 2, 1997, the Board of Governors of the Postal Service, 
pursuant to its authority under 39 U.S.C. 3625(f), determined to 
implement the permanent rate changes for Classroom Periodicals approved 
by the Governors effective at 12:01 a.m. on October 5, 1997 (Resolution 
No. 97-9). The Board also determined in Resolution No. 97-9 to exercise 
its authority under 39 U.S.C. 3642 to establish temporary phased rates 
for Classroom Periodicals for FY 1998 at Step 5 of phasing schedule 
attached to the Resolution. The Step 5 rates for Classroom Periodicals 
will be implemented on October 5, 1997. Due to rounding adjustments, 
there are no changes to Library Mail rates.
    Under both the new permanent and temporary rate schedules for 
Classroom Periodicals, no discount will be available for ZIP+4 letter 
mail. In this respect, Classroom will join the other preferred 
subclasses of Periodicals, for which the ZIP+4 letter discount category 
was eliminated in the earlier portions of Docket No. MC96-2. In the 
past, only a minute portion of Classroom mail has qualified for the 
ZIP+4 letter discount.
    All references to Domestic Mail Manual (DMM) are based on DMM Issue 
52 (July 1, 1997).

List of Subjects in 39 CFR Part 111

    Postal Service.


[[Page 39947]]


    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations (see 39 
CFR Part 111).

PART 111--[AMENDED]

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

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

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

Domestic Mail Manual (DMM)

C  CHARACTERISTICS AND CONTENT

C800  Automation-Compatible Mail

C810  Letters and Cards

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

2.3  Maximum Weight

[Amend 2.3a and 2.3f to read as follows:]
    Maximum weight limits are as follows:
    a. 2.5 ounces: upgradable Presorted First-Class Mail and upgradable 
nonautomation Standard Mail.
* * * * *
    f. 3.3362 ounces: automation First-Class Mail, automation 
Periodicals, and automation Nonprofit Standard Mail heavy letters, 
subject to 7.5.
* * * * *

C840  Barcoding Standards

* * * * *
2.0  BARCODE LOCATION--LETTER-SIZE PIECE

2.1  Barcode Clear Zone

[Amend the first sentence of 2.1 by removing ``each piece of ZIP+4 
Classroom Periodicals'' to read as follows:]
    Each letter-size piece in an automation rate mailing and each piece 
of upgradable Presorted First-Class Mail or upgradable Standard Mail 
(A) must have a barcode clear zone unless the piece bears a DPBC in the 
address block. * * * 
* * * * *
E  ELIGIBILITY
* * * * *

E200  Periodicals

* * * * *

E240  Automation Rates

1.0  BASIC STANDARDS

1.1  All Pieces

[Amend the introductory sentence to read as follows:]
    All pieces in an automation Periodicals mailing must:
* * * * *
[Revise the heading of 2.0 to read as follows:]
2.0  RATE APPLICATION
[Revise the heading of 2.1 to read as follows:]

2.1  Letters--Other Than Classroom Periodicals

[Amend 2.1b and 2.1d to read as follows:]
    Automation rates apply to each letter-size piece that is sorted 
under M810 into the corresponding qualifying groups:
* * * * *
    b. Groups of 150 or more pieces in 5-digit, 5-digit scheme, or 
unique 3-digit trays (and all pieces in one less-than-full overflow 
tray) qualify for the 3/5 automation Regular, or Nonprofit rate, as 
applicable.
* * * * *
    d. Pieces for a unique 3-digit destination that is part of a 3-
digit scheme group in L003 qualify for the 3-digit automation In-County 
rate or the 3/5 automation Regular, or Nonprofit rate, as applicable, 
when placed in a 3-digit scheme tray if grouped separately from pieces 
for other 3-digit areas.

[Redesignate current 2.2 as 2.3; redesignate and rename current 3.2 as 
2.2; and amend redesignated 2.2 to read as follows:]

2.2  Letters--Classroom Periodicals

    Automation rates apply to each letter-size piece that is sorted 
under M810 into the corresponding qualifying groups:
    a. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays 
(and all pieces in one less-than-full overflow tray) qualify for the 5-
digit automation rate.
    b. Groups of 150 or more pieces in unique 3-digit trays (and all 
pieces in one less-than-full overflow tray) qualify for the 3-digit 
automation rate.
    c. Pieces for a unique 3-digit destination that is part of a 3-
digit scheme group in L003 qualify for the 3-digit automation rate when 
placed in a 3-digit scheme tray if grouped separately from pieces for 
other 3-digit areas.
    d. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in other 3-digit, 3-digit 
scheme, or AADC trays and all pieces in mixed AADC trays qualify for 
the basic automation rate.

[Delete current 3.0.]
* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *

E612  Additional Standards for Standard Mail (A)

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

4.2 Minimum Per Piece Rates

[Amend 4.2 by revising the first sentence to read as follows:]
    The minimum per piece rates (i.e., the minimum postage that must be 
paid for each piece) apply to Enhanced Carrier Route rate pieces 
weighing no more than 0.2066 pound rounded (3.3062 ounces rounded); 
Regular nonautomation and automation rate pieces weighing no more than 
0.2068 pound rounded (3.3087 ounces rounded); Nonprofit Enhanced 
Carrier Route rate pieces weighing no more than 0.2084 pound rounded 
(3.3348 ounces rounded); and Nonprofit nonautomation and automation 
rate pieces weighing no more than 0.2085 pound rounded (3.3362 ounces 
rounded.) * * *
* * * * *
M  MAIL PREPARATION AND SORTATION
* * * * *

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.3  Preparation Instructions

[Amend 1.3g and 1.3h by removing the last sentence of each: ``Scheme 
sortation is not available for ZIP+4 Classroom Periodicals.''; no other 
change to text.]
* * * * *

M012  Markings and Endorsements

* * * * *

4.5  OCR Read Area

[Amend 4.5 to read as follows:]
    Any printing (including an endorsement or return address) on 
upgradable letter-size First-Class Mail or Standard Mail (A) must not 
interfere

[[Page 39948]]

with the delivery address lines within the OCR read area defined in 
C830.
* * * * *

M032  Barcoded Labels

* * * * *
1.0  BASIC STANDARDS--TRAY AND SACK LABELS
* * * * *

1.3 Content Line (Line 2)

[Amend Exhibit 1.3a by removing the following two content identifier 
numbers (CINs) from the exhibit:]
* * * * *
PER Letters-ZIP+4
Presort
(Classroom publications only)
All tray levels--349 PER LTRS UPGR
* * * * *
NEWS Letters-ZIP+4 Presort
(Classroom publications only)
All tray levels--449 NEWS LTRS UPGR
* * * * *

M800  All Automation Mail

M810  Letter-Size Mail

1.0  BASIC STANDARDS
* * * * *

1.2 Mailings

[Amend 1.2 by removing the last sentence to read as follows:]
    All pieces in a mailing must meet the standards in C810 and must be 
sorted together to the finest extent required. A single automation rate 
mailing may include pieces prepared at 5-digit, 3-digit, 3/5, and basic 
automation rates, as applicable; all may be reported on the same 
postage statement and documentation. The definitions of a mailing and 
permissible combinations are in M011.
* * * * *
3.0  PERIODICALS

3.1  Tray Preparation

[Amend 3.1a and 3.1b to read as follows:]
    Tray size, preparation sequence, and Line 1 labeling:
    a. 5-digit/scheme: 5-digit trays required (150-piece minimum), 5-
digit scheme trays optional (150-piece minimum); overflow trays 
allowed; for Line 1, for required 5-digit trays use 5-digit ZIP Code 
destination of pieces, preceded for military mail by the prefixes under 
M031; for Line 1, for optional 5-digit scheme trays, use destination 
shown in the current City State File.
    b. 3-digit/scheme: required (150-piece minimum except no minimum 
for required origin/optional entry 3-digit(s)/scheme); overflow 
allowed; for Line 1, use L002, Column B.
* * * * *
P  POSTAGE AND PAYMENT METHODS

P000  Basic Information

P010  General Standards

* * * * *

P013  Rate Application and Computation

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

4.3 Bulk Rates

[Amend 4.3 to read as follows:]
    Bulk rates are based on the weight of the pieces and are applied 
differently to pieces weighing less than or equal to a ``breakpoint'' 
(rounded to four decimal places) and those weighing more, as follows:
    a. The appropriate minimum per piece rate applies to pieces 
weighing 0.2066 pound (3.3062 ounces) or less (Enhanced Carrier Route 
rates), 0.2068 pound (3.3087 ounces) or less (Regular rates), 0.2084 
pound (3.3348 ounces) or less (Nonprofit Enhanced Carrier Route rates), 
or 0.2085 pound (3.3362 ounces) or less (Nonprofit rates).
    b. A rate determined by adding the appropriate fixed per piece 
charge and the corresponding variable per pound charge (based on the 
weight of the piece) applies to pieces weighing more than 0.2066 pound 
(3.3062 ounces) (Enhanced Carrier Route rates), 0.2068 pound (3.3087 
ounces) (Regular rates), 0.2084 pound (3.3348 ounces) (Nonprofit 
Enhanced Carrier Route rates), or 0.2085 pound (3.3362 ounces) 
(Nonprofit rates).
* * * * *
R RATES AND FEES
* * * * *

R100 First-Class Mail

* * * * *
[Amend footnote 3 of ``Summary of First-Class Rates'' chart to read as 
follows:]

    \3\ Weight not to exceed 3.3362 ounces; pieces over 3 ounces 
subject to additional standards.
* * * * *

R200 Periodicals

* * * * *
2.0 PREFERRED--IN-COUNTY
* * * * *

2.2 Piece Rates

[Revise 2.2 to read as follows:]
    Per addressed piece:

------------------------------------------------------------------------
                                                        Automation \1\  
                                                     -------------------
            Presort level              Nonautomation   Letter-    Flat- 
                                                        size      size  
------------------------------------------------------------------------
Basic................................       $0.082      $0.082    $0.082
3/5..................................                              0.067
3-Digit..............................                    0.078          
5-Digit..............................                    0.065          
Carrier Route........................        0.044                      
High Density.........................        0.039                      
Saturation...........................        0.037                      
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3362 ounces for heavy letters); flat-size at 16 ounces.             

* * * * *
3.0 PREFERRED--NONPROFIT

3.1 Pound Rates

[Amend 3.1a to read as follows:]
    Per pound or fraction:
    a. For the nonadvertising portion: $0.142
* * * * *

3.2  Piece Rates

[Revise 3.2 to read as follows:]
    Per addressed piece:

------------------------------------------------------------------------
                                                         Automation\1\  
                                                     -------------------
            Presort level              Nonautomation   Letter-    Flat- 
                                                        size      size  
------------------------------------------------------------------------
Basic................................       $0.217      $0.187    $0.193
3/5..................................        0.172    ........     0.148
3-Digit..............................  .............     0.149  ........
5-Digit..............................  .............     0.149  ........
Carrier..............................        0.105    ........  ........
Route................................  .............  ........  ........
High.................................        0.098    ........  ........
Density..............................  .............  ........  ........
Saturation...........................        0.084    ........  ........
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3362 ounces for heavy letters); flat-size at 16 ounces.             

* * * * *
4.0  PREFERRED--CLASSROOM

4.1  Pound Rates

[Revise 4.1 to read as follows:]
    Per pound or fraction:
    a. For the nonadvertising portion: $0.143
    b. For the advertising portion:

------------------------------------------------------------------------
                             Zone                                 Rate  
------------------------------------------------------------------------
Delivery Unit................................................     $0.169
SCF..........................................................      0.190
1 & 2........................................................      0.214
3............................................................      0.224
4............................................................      0.251
5............................................................      0.292
6............................................................      0.336
7............................................................      0.388

[[Page 39949]]

                                                                        
8............................................................      0.432
------------------------------------------------------------------------

4.2  Piece Rates

[Revise 4.2 to read as follows:]
    Per addressed piece:

------------------------------------------------------------------------
                                                         Automation\1\  
                                                     -------------------
            Presort level              Nonautomation   Letter-    Flat- 
                                                        size      size  
------------------------------------------------------------------------
Basic................................       $0.211      $0.191    $0.184
3/5..................................        0.160    ........     0.142
3-Digit..............................  .............     0.148  ........
5-Digit..............................  .............     0.140  ........
Carrier Route........................        0.115    ........  ........
High Density.........................        0.113    ........  ........
Saturation...........................        0.107    ........  ........
------------------------------------------------------------------------
\1\ Lower maximum weight limits apply: letter-size at 3 ounces (or      
  3.3362 ounces for heavy letters); flat-size at 16 ounces.             

4.3  Discounts

[Amend 4.3 to read as follows:]
    Piece rate discounts:
    a. Nonadvertising adjustment for each 1% of nonadvertising content: 
$0.00042 per piece.
    b. Delivery unit zone piece discount or each addressed piece 
claimed in the pound rate portion at the delivery unit zone rate: 
$0.006.
    c. SCF zone piece discount for each addressed piece claimed in the 
pound rate portion at the SCF zone rate: $0.004.
* * * * *

R600  Standard Mail

* * * * *
4.0  NONPROFIT STANDARD MAIL
[Revise 4.0 to read as follows:]

4.1  Letter-Size Minimum Per Piece Rates

    Pieces 0.2085 pound (3.3362 ounces) or less:

----------------------------------------------------------------------------------------------------------------
                                                       Nonautomation                   Automation \1\           
                 Entry discount                 ----------------------------------------------------------------
                                                    Basic         3/5         Basic       3-Digit      5-Digit  
----------------------------------------------------------------------------------------------------------------
None...........................................       $0.135       $0.117       $0.102       $0.098       $0.085
DBMC...........................................        0.122        0.104        0.089        0.085        0.072
DSCF...........................................        0.117        0.099        0.084        0.080        0.067
DDU............................................  ...........  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              

4.2  Nonletter-Size Minimum Per Piece Rates

    Pieces 0.2085 pound (3.3362 ounces) or less:

----------------------------------------------------------------------------------------------------------------
                                                                    Nonautomation            Automation \1\     
                       Entry discount                        ---------------------------------------------------
                                                                 Basic         3/5         Basic         3/5    
----------------------------------------------------------------------------------------------------------------
None........................................................       $0.198       $0.149       $0.174       $0.125
DBMC........................................................        0.185        0.136        0.161        0.112
DSCF........................................................        0.180        0.131        0.156        0.107
DDU.........................................................  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Available only for automation-compatible flats.                                                             

4.3  Piece/Pound Rates

    Pieces more than 0.2085 pound (3.3362 ounces):

----------------------------------------------------------------------------------------------------------------
                                                                    Nonautomation            Automation \2\     
                    Piece/pound rate \1\                     ---------------------------------------------------
                                                                 Basic         3/5         Basic         3/5    
----------------------------------------------------------------------------------------------------------------
Per Piece...................................................       $0.100        $0.04       $0.076       $0.024
Per Pound (includes entry discount if applicable)...........         PLUS         PLUS         PLUS         PLUS
None........................................................        0.470        0.484        0.470        0.484
DBMC........................................................        0.408        0.422        0.408        0.422
DSCF........................................................        0.382        0.396        0.382        0.396
DDU.........................................................  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Each piece is subject to both a piece rate and a pound rate.                                                
\2\ Available only for automation-compatible flats.                                                             

5.0  NONPROFIT ENHANCED CARRIER ROUTE STANDARD MAIL

5.1  Letter-Size Minimum Per Piece Rates

[Revise 5.1 to read as follows:]
    Pieces 0.2084 pound (3.3348 ounces) or less:

----------------------------------------------------------------------------------------------------------------
                                                                    Nonautomation            Automation \1\     
                                                             ---------------------------------------------------
                       Entry discount                                          High                             
                                                                 Basic       density     Saturation     Basic   
----------------------------------------------------------------------------------------------------------------
None........................................................       $0.093       $0.087       $0.081       $0.082
DBMC........................................................        0.080        0.074        0.068        0.069
DSCF........................................................        0.075        0.069        0.063        0.064

[[Page 39950]]

                                                                                                                
DDU.........................................................        0.069        0.063        0.057        0.058
----------------------------------------------------------------------------------------------------------------
\1\ Pieces weighing over 3 ounces subject to additional standards.                                              

* * * * *
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 97-19640 Filed 7-24-97; 8:45 am]
BILLING CODE 7710-12-U