[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]


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POSTAL SERVICE

39 CFR Part 111


Presort Requirements for Periodicals Mail

AGENCY: Postal Service.

ACTION: Final rule.

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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