[Federal Register Volume 63, Number 2 (Monday, January 5, 1998)] [Rules and Regulations] [Pages 153-156] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-8] ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Presort Requirements for Periodicals Mail AGENCY: Postal Service. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule sets forth revised Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement a sectional center facility (SCF) level of sack for Periodicals automation and nonautomation mailings of nonletter-size pieces. An SCF level of package will not be added. Only 5-digit and 3-digit packages will be permitted in the SCF sack. SCF sacks will be prepared after 5-digit and 3-digit sacks, and prior to preparing ADC sacks. EFFECTIVE DATES: Optional preparation effective January 5, 1998. Preparation of [[Page 154]] the SCF level of sack will become required with implementation of the R-97 rate case. FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, (202) 268-6351. SUPPLEMENTARY INFORMATION: As part of the streamlining of presort requirements under Classification Reform, the Postal Service eliminated SCF packages and sacks on July 1, 1996. Some Periodicals mailers have indicated that they believe the inability to sack mail to the SCF level has affected the service of their publications. Many mailers of Periodicals publications prepare 5-digit and 3-digit packages that contain fewer than six pieces, and 5-digit and 3-digit sacks that contain fewer than the required 24 pieces, to ensure good levels of service. This results in increased sack usage by mailers and increased sack handlings by the Postal Service. Re-instituting SCF sacks would allow Periodicals mailers to consolidate 5-digit and 3-digit packages, including ``skin'' packages containing fewer than six pieces, to the applicable processing plant for service reasons without having to prepare ``skin'' 3-digit sacks. Preparing SCF sacks also will provide the opportunity for the Postal Service to receive many 5-digit and 3- digit packages sorted to a finer level than an area distribution center (ADC) sack. On September 15, 1997, the Postal Service published for public comment in the Federal Register (62 FR 48191-48192) a proposed rule to re-institute an SCF level of sack for Periodicals automation and nonautomation mailings of nonletter-size pieces. The proposed rule did not provide for preparing SCF packages. The rule proposed that preparing the SCF sack would be optional for the period beginning on the date the final rule was published and ending on the effective date of the preparation rules that will be placed into effect as a result of the Docket No. R97-1 rate case proceedings, and that when the preparation rules resulting from the rate case proceedings are implemented, preparing the SCF sack would become mandatory. Comments were received from eight commenters, including three mailer associations. Three commenters supported the proposal to prepare only SCF sacks. Four commenters requested that Periodicals mailers be permitted to prepare SCF packages as well as SCF sacks. Allowing an SCF package would add another level of piece distribution for many of the larger Postal Service plants. Mail processing plants can sort the pieces prepared in 3-digit packages to 5-digit ZIP Codes in one handling. Mail received in an SCF package would in most cases require two handlings to sort the mail to the 5-digit ZIP Code level. This extra handling equates to higher costs and possible delay in delivery of the pieces in these packages. The Postal Service believes that the SCF sack by itself should help improve service for Periodicals publications, since it will capture volumes from ADC sacks that currently are not being prepared in 3-digit ``skin'' sacks. Also, the SCF sack should help to reduce some of the workload for mailers that are preparing 3-digit ``skin'' sacks since they will be able to prepare a single SCF sack instead of multiple 3-digit sacks for those SCFs that process mail for more than one 3-digit ZIP Code area. Accordingly, the Postal Service has determined to implement only an SCF sack at this time, and not an SCF package. The Postal Service will monitor the effects of the SCF sack on service to determine if it will give future consideration to implementing an SCF package. Two commenters stated that preparing the SCF sack should remain optional and not become a required level of presort with implementation of the rules for the Docket No. R97-1 rate case proceedings. One of these commenters did not provide a reason for this comment. The other commenter erroneously believed that the Postal Service planned to require preparing SCF sacks whenever there were 24 pieces for the SCF area, rather than whenever there were 24 pieces prepared in 5-digit and 3-digit packages remaining for the SCF area after preparing 5-digit and 3-digit sacks. This commenter was concerned that such a revised 24- piece rule would have required mailers to prepare 5-digit and 3-digit packages containing fewer than six pieces (``skin'' packages) in certain instances for inclusion in SCF sacks, which would have had an adverse affect on some bindery operations. The Postal Service is not revising the current process for preparing packages and sacks for Periodicals mail. Accordingly, mailers will still have the option of preparing 5-digit and 3-digit packages of fewer than six pieces for service reasons under the provisions of revised DMM M200.1.5 and M820.1.7 in this final rule, but will not be required to prepare such packages. The Postal Service believes a required SCF sack level will result in many 5-digit and 3-digit packages being prepared to the SCF level, rather than being placed in ADC sacks, which should improve service. Accordingly, the Postal Service has determined to make an SCF sack a required level of sack preparation on the effective date of the preparation rules that will be placed into effect as a result of the Docket No. R97-1 rate case proceedings, and to make the SCF sack optional prior to that time. One commenter requested that, for consistency, an SCF level of sack also be added to Standard Mail (A) preparation requirements. The SCF level of sack is being added to Periodicals mail preparation standards to improve service for Periodicals mail and to mitigate some of the need for mailers to prepare skin sacks. Standard Mail (A) mailers are not permitted to prepare sacks that contain less than the minimum sacking quantity of 125 pieces or 15 pounds of mail. The Postal Service therefore has determined not to add an SCF level of sack to the preparation standards for Standard Mail (A) at this time. Accordingly, the Postal Service has determined to reinstitute, for only nonletter-size Periodicals publications, an SCF sack that would be prepared after all required 5-digit and 3-digit sacks, and prior to preparing required ADC sacks. Effective immediately, preparing SCF sacks will be optional. Beginning on the effective date of the preparation rules that are placed in effect as a result of the Docket No. R97-1 rate case proceedings, preparing SCF sacks will become mandatory. During the period in which preparation of the SCF sack is optional, mail in SCF sacks in nonautomation rate mailings will be eligible for the basic per-piece rates. For mail in SCF sacks in automation rate mailings, 5-digit and unique 3-digit packages of six or more pieces will qualify for the 3/5 automation rate, and nonunique 3-digit packages as well as 5-digit and 3-digit packages of fewer than six pieces will qualify for the basic automation per-piece rates. For the interim period when preparing SCF sacks is optional, mailers who choose to prepare SCF sacks must prepare them for each SCF in the mailing for which there are 24 or more pieces of mail prepared in 5-digit and/or 3-digit packages remaining after preparing 5-digit and 3-digit sacks. At the mailer's option, SCF sacks also may be prepared that contain fewer pieces (a minimum of one package). The standard to prepare required origin/optional entry 3-digit sacks will not apply to Periodicals publications for which SCF sacks are prepared. Instead, mailers opting to prepare SCF sacks must prepare required origin/optional entry SCF sacks. At the time SCF sacks become a required level of sortation, the standard to prepare required origin/ [[Page 155]] optional entry 3-digit sacks will be deleted and preparation of required origin/optional entry SCF sacks will become the new standard. 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). List of Subjects in 39 CFR Part 111 Postal Service. 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: M Mail Preparation and Sortation M000 General Preparation Standards M010 Mailpieces M011 Basic Standards 1.0 Terms and Conditions * * * * * 1.2 Presort Levels [Redesignate current 1.2j through 1.2m as 1.2k through 1.2n respectively; insert new 1.2j to read as follows:] j. Origin/optional entry SCF: the separation includes packages for one or more 3-digit areas served by the same sectional center facility (SCF) (see L002, Column C or L005) in whose service area the mail is verified/entered. Subject to standard, this separation is required regardless of the volume of mail. * * * * * 1.3 Preparation Instructions [Redesignate current 1.3j through 1.3p as 1.3k through 1.3q respectively; insert new 1.3j to read as follows:] j. An origin/optional entry SCF sack contains all 5-digit and 3- digit packages (regardless of quantity) for the SCF in whose service area the mail is verified. At the mailer's option, such a sack may be prepared for the SCF area of each entry post office. This presort level applies only to nonletter-size Periodicals prepared in sacks. * * * * * M030 Containers * * * * * M032 Barcoded Labels 1.0 Basic Standards--Tray and Sack Labels * * * * * 1.3 Content Line (Line 2) [Amend Exhibit 1.3a by inserting the following between 3-digit sacks and ADC sacks for PER Flats--Automation to read as follows:] ------------------------------------------------------------------------ Human readable Class and mailing --------------------------------- CIN Content line ------------------------------------------------------------------------ * * * * * PER Flats--Automation * * * * * SCF sacks............................. 377 PER FLTS SCF BC * * * * * ------------------------------------------------------------------------ [Amend Exhibit 1.3a by inserting the following between 3-digit sacks and ADC sacks for PER Flats--3/5 and Basic to read as follows:] PER Flats--3/5 and Basic ------------------------------------------------------------------------ Human readable Class and mailing --------------------------------- CIN Content line ------------------------------------------------------------------------ * * * * * SCF sacks............................. 384 PER FLTS SCF NON BC * * * * * ------------------------------------------------------------------------ [Amend Exhibit 1.3a by inserting the following between 3-digit sacks and ADC sacks for NEWS Flats--Automation to read as follows:] ------------------------------------------------------------------------ Human readable Class and mailing --------------------------------- CIN Content line ------------------------------------------------------------------------ EWS Flats--Automation * * * * * SCF sacks............................. 477 NEWS FLTS SCF BC * * * * * ------------------------------------------------------------------------ [Amend Exhibit 1.3a by inserting the following between 3-digit sacks and ADC sacks for NEWS Flats--3/5 and Basic to read as follows:] NEWS Flats--3/5 and Basic ------------------------------------------------------------------------ Human readable Class and mailing --------------------------------- CIN Content line ------------------------------------------------------------------------ * * * * * SCF sacks............................. 484 NEWS FLTS SCF NON BC * * * * * ------------------------------------------------------------------------ M200 Periodicals (Nonautomation) 1.0 BASIC STANDARDS * * * * * 1.5 Low-Volume Packages and Sacks [Amend 1.5 to read as follows:] size Periodicals may be prepared in packages containing fewer than six pieces, and in sacks containing as few as one such package, when the publisher determines that such preparation improves service. These low-volume packages may be placed on 5-digit, 3-digit, and SCF pallets under M045. [Add new 1.6 to read as follows:] 1.6 Optional SCF Sack Mailers of nonletter-size Periodicals have the option to prepare an SCF sack level. If mailers choose to prepare SCF sacks, they must prepare them for all SCF destinations in the mailing for which there are 24 or more pieces prepared in 5-digit or 3-digit packages, under 3.1. When SCF sacks are prepared, required origin/optional entry 3- digit sacks must not be prepared and required origin/optional entry SCF sacks must be prepared. * * * * * 3.0 Sack Preparation (Flat-Size Pieces and Irregular Parcels) 3.1 Sack Preparation [Redesignate current 3.1e and 3.1f as 3.1f and 3.1g respectively; insert new 3.1e to read as follows:] Sack size, preparation sequence, and Line 1 labeling: * * * * * e. Optional SCF: required at 24 pieces (no minimum for required origin/optional entry SCF), optional with one six-piece package minimum except under 1.5; for Line 1, use L002, Column C. * * * * * M820 Flat-Size Mail 1.0 Basic Standards * * * * * 1.7 Exception--Periodicals [Amend 1.7 to read as follows:] As a general exception to 3.1a, 3.1b, and 3.2a through 3.2c, Periodicals may be prepared in packages containing fewer than six pieces, and in sacks containing as few as one such package, when the publisher determines that such preparation improves service. These low- volume packages may be placed on 5-digit, 3-digit, and SCF pallets under M045. [Add new 1.8 to read as follows:] 1.8 Optional SCF Sack--Periodicals Mailers of Periodicals have the option to prepare an SCF sack level. If mailers choose to prepare SCF sacks, they must prepare them for all SCF destinations in the mailing for which there are 24 or [[Page 156]] more pieces prepared in 5-digit or 3-digit packages, under 3.2. When SCF sacks are prepared, required origin/optional entry 3-digit sacks must not be prepared and required origin/optional entry SCF sacks must be prepared. * * * * * 3.0 Periodicals * * * * * 3.2 Sack Preparation [Redesignate current 3.2c and 3.2d as 3.2d and 3.2e respectively; add new 3.2c to read as follows:] Sack size, preparation sequence, and Line 1 labeling: * * * * * c. Optional SCF: required at 24 pieces (no minimum for required origin/optional entry SCF), optional with one six-piece package minimum except under 1.7; for Line 1, use L002, Column C. * * * * * An appropriate amendment to 39 CFR 111.3 will be published to reflect these changes. Neva R. Watson, Alternative Liaison. [FR Doc. 98-8 Filed 1-2-98; 8:45 am] BILLING CODE 7710-12-P