[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)]
[Rules and Regulations]
[Pages 53539-53541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27299]
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POSTAL SERVICE
39 CFR Part 111
Bulk Parcel Return Service and Shipper Paid Forwarding
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM)
standards adopted by the Postal Service to implement the decision of
the Governors of the Postal Service in Postal Rate Commission Docket
No. MC97-4, Bulk Parcel Return Service and Shipper Paid Forwarding.
EFFECTIVE DATES: The amendments to section S concerning Bulk Parcel
Return Service are effective October 12, 1997, and the amendments to
sections F and R concerning Shipper Paid Forwarding are effective
January 4, 1998.
FOR FURTHER INFORMATION CONTACT: Tom DeVaughan, (202) 268-4491.
SUPPLEMENTARY INFORMATION: On June 6, 1997, the United States Postal
Service filed a Request with the Postal Rate Commission pursuant to
sections 3622 and 3623 of the Postal Reorganization Act, 39 U.S.C. 101
et seq., for a recommended decision on proposed changes to the Domestic
Mail Classification Schedule (DMCS). The proposed revisions also
included proposed new fees. The Postal Service requested the
consideration of two changes affecting the forwarding and return of
Standard Mail (A) parcels that were initially considered in Docket No.
MC97-2. It requested that Bulk Parcel Return Service (BPRS) and Shipper
Paid Forwarding (SPF) be established.
Pursuant to 39 U.S.C. 3624, on September 4, 1997, the PRC issued
its Recommended Decision in Docket MC97-4, to the Governors of the
United States Postal Service. That decision adopted the BPRS and SPF
classifications and fees proposed in a Revised Stipulation and
Agreement submitted by most of the parties in the proceeding. Pursuant
to 39 U.S.C. 3625, the Governors acted on the PRC's Recommendation on
October 6, 1997.
The Governors approved the PRC's recommendations, and set an
implementation date of October 12, 1997, for BPRS. Due to software and
other support modifications needed for Computer Forwarding Sites and
the Address Change Service network to support SPF, the Governors set
January 4, 1998, for the effective date of SPF.
Under current practice, forwarding and return of bulk Standard Mail
(A) parcels are obtained by endorsing pieces ``Forwarding Service
Requested'' (or until December 31, 1997, ``Forwarding and Return
Postage Guaranteed'') or ``Address Service Requested'' (or until
December 31, 1997, ``Forwarding and Return Postage Guaranteed, Address
Correction Requested''). The postage charged at the time that a parcel
is returned is a weighted fee that is 2.472 times the applicable
single-piece rate. This fee indirectly pays for forwarding service of
other parcels: 1.472 is the average number of pieces forwarded for
[[Page 53540]]
every piece that is returned. Multiplying 1.472 by the single-piece
rate is intended to cover the cost of the forwarding service.
BPRS and SPF will provide mailers other options. SPF allows mailers
to pay forwarding postage (the applicable single-piece rate) directly
through the use of the tracking capabilities of the existing electronic
Address Change Service (ACS). Only mailers authorized to participate in
ACS and who mail machinable parcels with the required endorsement will
be eligible. An advance postage due deposit account is required. BPRS,
through bulk handling of returned parcels, lowers the average cost of
the return service. BPRS mailers must arrange for pickup of their
returned parcels in bulk at a specified frequency at a designated
postal facility(s), or arrange to have their returned parcels delivered
to them in bulk by the Postal Service. Only machinable parcels weighing
less than one pound, with the required endorsements, are eligible for
BPRS. A minimum requirement of 10,000 returned parcels per year at each
site (return address) is required. BPRS mailers must document their
returned parcel volume and maintain an advance deposit account. A flat
$1.75 per-piece fee for each returned parcel and an annual permit fee
of $85.00 are required at each designated facility. BPRS and SPF can be
combined, beginning with the January 4, 1998, effective date for SPF.
This final rule contains the DMM standards adopted by the Postal
Service to implement the Governors decision. Appropriate clarifications
are included.
Lists of Subjects in 39 CFR Part 111
Postal Service.
For the reasons discussed above, the Postal Service hereby adopts
the following amendments to the Domestic Mail Manual, which is
incorporated by reference in the Code of Federal Regulations (see 39
CFR part 111).
PART 111--[AMENDED]
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.
Revise the following sections of the Domestic Mail Manual as noted
below:
* * * * *
F FORWARDING AND RELATED SERVICES
F010 Basic Information
* * * * *
5.0 CLASS TREATMENT FOR ANCILLARY SERVICES
* * * * *
5.3 Standard Mail (A)
* * * * *
[Redesignate existing 5.3c through 5.3e as 5.3d through 5.3f,
respectively; redesignate existing 5.3g as 5.3i. Amend 5.3 by adding a
new 5.3c and new 5.3h to read as follows:].
* * * * *
c. Effective January 4, 1998, mail that qualifies for Shipper Paid
Forwarding (F020) under the applicable standards is forwarded (and if
necessary) returned at the Standard Mail (A) single-piece rate.
* * * * *
h. Mail that qualifies for Bulk Parcel Return Service (BPRS) under
the applicable standards in S924 is returned at the BPRS per piece fee,
if the mailer uses one of the endorsements that includes ``-- BPRS.''
Until January 4, 1998, when SPF becomes effective, mailers using BPRS
will not be able to request forwarding services.
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``Return Service Requested--BPRS''................ Piece returned with
new address or
reason for
nondelivery
attached; only the
Bulk Parcel Return
Service fee charged
(address correction
fee not charged).
(Effective January 4, 1998)
``Address Service Requested--BPRS''............... Months 1 through 12:
piece forwarded; no
charge to
addressee; separate
ACS notice of new
address provided;
ACS address
correction fee and
postage at single-
piece Standard Mail
(A) rate charged
via ACS participant
code.
Months 13 through
18: piece returned
with new address
attached; only the
Bulk Parcel Return
Service fee charged
(address correction
fee not charged).
After month 18, or
if undeliverable:
piece returned with
reason for
nondelivery
attached; only Bulk
Parcel Return
Service fee charged
(address correction
fee not charged).
------------------------------------------------------------------------
* * * * *
F020 Forwarding
* * * * *
3.0 POSTAGE FOR FORWARDING
* * * * *
3.5 Standard Mail (A)
[Amend 3.5 to read as follows:]
Generally, Standard Mail (A) is subject to collection of additional
postage from the mailer when forwarding service is provided by charging
the Standard Mail (A) weighted fee on all returns. Shipper Paid
Forwarding, used in conjunction with Address Change Service (F030),
provides mailers of Standard Mail (A) machinable parcels an option of
paying forwarding postage at the Standard Mail (A) single-piece rate.
Mail that qualifies for Bulk Parcel Return Service (BPRS) is returned
at the BPRS per piece charge if the mailer uses one of the ancillary
service endorsements that specifies BPRS (e.g., ``Return Service
Requested--BPRS''). * * *
* * * * *
F030 Address Correction, Address Change, FASTforward,SM and
Return Services
* * * * *
2.0 ADDRESS CHANGE SERVICE (ACS)
2.1 Description
[Amend 2.1 to read as follows:]
Address Change Service (ACS) centralizes, automates, and improves
the processing of address correction requests for mailers. ACS involves
transmitting address correction information to a central point where
the changes are consolidated electronically by unique publication or
mailer identifier. These records are sequentially organized by USPS-
assigned codes and distributed to each participating mailer. ACS can
also be used to pay forwarding postage on most Standard Mail pieces
using Shipper Paid Forwarding under 2.5.
* * * * *
[Add new 2.5 to read as follows:]
2.5 Shipper Paid Forwarding
Shipper Paid Forwarding (SPF) is an ACS fulfillment vehicle. It
allows mailers of Standard Mail (A) machinable parcels (effective
January 4, 1998), and most Standard Mail (B) to pay forwarding charges
via approved ACS participant code(s). For information, write to the
National
[[Page 53541]]
Customer Support Center (see G043 for address).
* * * * *
R RATES AND FEES
* * * * *
R600 Standard Mail
* * * * *
10.0 FEES
10.1 Mailing
[Redesignate current 10.1b and 10.1c as 10.1c and 10.1d respectively;
add new 10.1b to read as follows]
b. Bulk Parcel Return Service Permit Fee: $85.00
* * * * *
[Add new 10.4 to read as follows:]
10.4 Bulk Parcel Return Service Fee
Bulk Parcel Return Service fee per piece returned: $1.75
* * * * *
S900 Special Postal Services
* * * * *
S920 Convenience
* * * * *
[Add new S924 to read as follows:]
S924 Bulk Parcel Return Service
1.0 BASIC INFORMATION
1.1 Description
Bulk Parcel Return Service (BPRS) provides a method whereby high-
volume parcel mailers may have undeliverable-as-addressed machinable
parcels returned to designated postal facilities for bulk pickup by the
mailer at a predetermined frequency prescribed by the Postal Service,
or delivered by the Postal Service in bulk in a manner and frequency
prescribed by the Postal Service. Mailers using this service pay only
the BPRS per piece fee for each parcel returned.
1.2 Availability
BPRS is available only for the return of machinable parcels, as
defined in C050, initially prepared and mailed as Regular or Nonprofit
Standard Mail (A) machinable parcels. Mail for which BPRS is requested
must bear one of the BPRS endorsements in F010 and a return address
that is in the delivery area of the post office that issued the BPRS
permit. Effective January 4, 1998, BPRS may also be combined with the
Shipper Paid Forwarding service (F030). Any Standard Mail (A) parcel
that qualifies for a single-piece Standard Mail (B) rate under the
applicable standards, and that contains the name of the Standard Mail
(B) rate in the mailer's ancillary service endorsement is not eligible
for BPRS.
1.3 Payment Guarantee
The permit holder guarantees payment of fees on all returned
parcels from a centralized advance deposit postage due account.
1.4 Where Service Established
BPRS may be established at any post office in the United States and
its territories and possessions or at any U.S. military post office
overseas (APO/FPO). It is not available in any foreign country.
2.0 PERMITS
2.1 Application Process and Participation
To participate in BPRS, the mailer must make a written request to
the postmaster at each post office where parcels are to be returned.
The request must:
a. Demonstrate receipt of 10,000 returned machinable Standard Mail
(A) parcels at a given delivery point during the previous 12 months, or
b. Demonstrate a high likelihood of receiving a minimum of 10,000
returned machinable Standard Mail (A) parcels at a given delivery point
in the coming 12 months.
The written request must be submitted with the annual permit fee, a
description of the mail (e.g., size, packaging), a sample of the
documentation to be used to substantiate individually, the number of
parcels returned each day, and the requested frequency and location of
the pickup or delivery of the parcels. If the mailer's request is
approved, the USPS issues the mailer an authorization letter and
agreement with the BPRS permit number (which will be used solely for
account and annual fee tracking). The BPRS permit number is not to
appear on the mail. The mailer must have a valid postage due advance
deposit account and pay the annual BPRS permit fee to participate in
BPRS.
2.2 Permit Renewal
An annual renewal notice is provided to each BPRS permit holder.
The notice must be returned to the post office that issued the permit
with the fee payment or authorization for the postmaster to deduct the
fee from the advance deposit account by the expiration date of the
permit. Written authorization is not needed for permit renewal if there
is no change to the authorization on file at the post office where the
parcels are to be returned. If, after notice, the permit holder does
not renew a BPRS permit, the USPS endorses the mail ``Bulk Parcel
Return Service Canceled'' and charges postage due at the single-piece
Standard Mail (A) rate. If the single-piece Standard Mail (A) rate is
not paid, the mail is then forwarded to the nearest mail recovery
center for final disposition.
2.3 Procedure
An approved BPRS permit and fee payment must be on file at every
post office to which parcels are returned.
2.4 Permit Cancellation
The USPS may cancel a permit if the permit holder fails to meet the
minimum requirements, refuses to accept and pay the required fee for
parcels returned, fails to keep sufficient funds in the advance deposit
account to cover fees due for returned parcels, or fails to meet terms
of the authorization (e.g., fails to pickup mail on agreed upon
frequency).
2.5 Reapplying After Cancellation
To receive a new permit at the same post office after a BPRS permit
is canceled, the applicant must resubmit a letter to that office; pay a
new permit fee; provide evidence that the reasons for the permit
cancellation are corrected; and provide and keep funds in an advance
deposit account to cover normal returns for at least 2 weeks.
3.0 POSTAGE AND FEES
3.1 Permit Fee
A permit fee is charged once each 12-month period on the
anniversary date of the permit. The fee may be paid in advance only for
the next year and only during the last 30 days of the current service
period. The fee charged is that which is in effect on the date of
payment.
3.2 Payment
The permit holder must pay BPRS per piece fees by an advance
deposit account. The post office delivers parcels under this service
only when estimated sufficient funds are in the account to pay all
applicable fees. The permit holder may establish a unique advance
deposit account or use an existing one to pay postage under BPRS.
* * * * *
An appropriate amendment to 39 CFR 111.3 will be published to
reflect these changes.
Neva R. Watson,
Alternate Liaison Officer.
[FR Doc. 97-27299 Filed 10-10-97; 11:50 am]
BILLING CODE 7710-12-P