[Federal Register Volume 63, Number 32 (Wednesday, February 18, 1998)]
[Proposed Rules]
[Pages 8154-8156]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3952]


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POSTAL SERVICE

39 CFR Part 111


Elimination of Mixed BMC/ADC Pallets of Packages of Flats

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This notice presents proposed revisions to Domestic Mail 
Manual (DMM) sections M041 and M045 to eliminate the options for 
mailers to

[[Page 8155]]

place packages and bundles of Periodicals Mail on mixed ADC pallets and 
to place packages and bundles of Standard Mail (A) and Standard Mail 
(B) on mixed BMC pallets. Mailers will continue to have the options to 
place sacks, trays, or parcels on mixed ADC or mixed BMC pallets, as 
appropriate for the class of mail.

DATES: Comments must be received on or before April 6, 1998.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Business Mail Acceptance, 475 L'Enfant Plaza SW, Room 6801, 
Washington, DC 20260-6808. Copies of all written comments will be 
available at the above address for inspection and photocopying between 
9 a.m. and 4 p.m. Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: Since the implementation of Classification 
Reform in July 1996, mailers have had the options to prepare mixed ADC 
pallets of Periodicals and mixed BMC pallets of Standard Mail. Although 
these options offer some benefits in the manufacturing and distribution 
handling processes of mailers by reducing sack usage, they have had a 
negative impact on service and mailpiece integrity for packages and 
bundles of flats placed on mixed ADC/BMC pallets.
    Mixed pallets of packages and bundles are labeled to the origin BMC 
or ADC serving the 3-digit prefix of the entry office for processing. 
These pallets may consist of carrier route, 5-digit, 3-digit, ADC, or 
mixed ADC packages. Studies indicate that more than 90 percent of the 
packages on mixed pallets are prepared to the carrier route, 5-digit, 
and 3-digit levels. When the mixed pallets are worked at origin, each 
package that is for delivery outside the service area of that facility 
must be handled and sorted individually to the appropriate downstream 
ADC or BMC facility for further processing and distribution. In many 
cases, the packages on these pallets could have been placed, by the 
mailer, in sacks containing multiple packages sorted to the carrier 
route(s), 5-digit, or 3-digit level. The sacks could have been 
processed at the origin facility, generally on a sack sorter, to the 
appropriate downstream facility avoiding the individual package 
handlings at origin, thus providing greater opportunities to improve 
service and maintain piece integrity for the mail contained in those 
packages. Pieces in mixed ADC packages are distributed at an origin ADC 
or concentration center.
    Packages of Standard Mail that are placed on mixed BMC pallets are 
required to meet BMC machinability standards to facilitate processing 
on BMC parcel sorters. However, in many instances, packages of flat-
size mail on these pallets are being handled manually at origin and 
downstream BMCs and ADCs because they do not maintain their integrity 
on the parcel sorting equipment. This manual sortation drives more 
costs and processing time into the system.
    For the past year, the Postal Service has been advising the mailing 
industry that the delays in delivery, damage to mailpieces, and 
additional processing costs to the Postal Service that may result from 
preparation of these optional mixed pallet levels outweigh the mail 
production benefits to mailers. The Postal Service was planning to 
eliminate this option in the future once it expected that a sufficient 
quantity of sacks would be available on a regular basis to handle any 
volume that would shift from mixed pallets to sacks. Through the 
purchase of additional plastic sacks, we are confident that we will 
have a sufficient quantity of sacks available to handle all volume 
shifts that are likely to result from this change. Moreover, the 
implementation of the Mail Transport Equipment Service Centers (MTESC) 
over the next 24 months will ensure the continued availability of 
sacks.
    It should be noted that there are several other efforts under way, 
including the work being conducted by the Mailers' Technical Advisory 
Committee (MTAC) Presort Optimization Workgroup, to explore 
opportunities for reducing the need for mixed pallets without 
necessarily moving all the mail on these pallets back into sacks. 
However, for the reasons described above, the Postal Service has 
decided to go forward at this time with its proposal to eliminate the 
mixed pallets for packages and bundles.
    Discussions with many mailers have revealed that concerns about 
delivery times have caused them to voluntarily eliminate the 
preparation of optional mixed BMC and mixed ADC pallets. They were able 
to do so because most software used by mailers to palletize mail 
already allows them to turn off the optional mixed BMC/ADC sorts and to 
sack the packages that would have been placed on these pallets. 
Accordingly, in most instances, software will not require modification 
to accommodate the proposed changes.
    The Postal Service proposes that the revised standards become 
effective 45 days from the date that the final rule is published.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553 (b), (c)), regarding 
proposed rulemaking by 39 U.S.C. 401(a), the Postal Service invites 
comments on the following proposed revisions of the Domestic Mail 
Manual, 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, 5001.

    2. Amend the Domestic Mail Manual as set forth below:

M  Mail Preparation and Sortation

M000  General Preparation Standards

* * * * *

M020  Packages and Bundles

* * * * *
1.0  BASIC STANDARDS
[Amend the third sentence in 1.4 by removing the reference to mixed BMC 
pallets to read as follows:]

1.4  Palletization

    * * * Packages and bundles on BMC pallets must be shrinkwrapped and 
machinable on BMC parcel sorters; machinability is determined by the 
USPS * * *.

M040  Pallets

M041   General Standards

* * * * *
5.0  PREPARATION

5.1  Presort

[Amend 5.1 by revising the last sentence and adding new sentences to 
read as follows:]
    For sacks, trays, or machinable parcels on pallets, the mailer must 
prepare all required pallet levels before any mixed ADC or mixed BMC 
pallets are prepared for a mailing or job. Packages and bundles 
prepared under M045 must not be placed on mixed ADC or mixed BMC 
pallets. Packages and bundles that cannot be placed on pallets must be 
prepared in sacks under the standards for the rate claimed.

5.2  Required Preparation

[Amend 5.2 by removing the second and third sentences and revising the 
fourth sentence to read as follows:]

[[Page 8156]]

    Mixed pallets of sacks, trays, or machinable parcels must be 
labeled to the BMC or ADC (as appropriate) serving the post office 
where mailings are entered into the mailstream. The processing and 
distribution manager * * *
* * * * *

5.6  Sacked Mail

[Amend 5.6 by revising the first sentence to read as follows:]
    Mail that is not palletized (e.g., the mailer chooses not to 
prepare BMC pallets, or the packages do not meet the machinability 
standards in M020) must be prepared under the standards for the rate 
claimed.
* * * * *

M045  Palletized Mailings

* * * * *
2.0   PACKAGES OF FLATS

2.1  Standards

[Amend 2.1 by revising the second sentence to read as follows:]
    The palletized portion of a mailing may not include packages sorted 
to mixed ADC or to foreign destinations.
* * * * *

2.4  Size--Standard Mail (B)

* * * * *
[Amend 2.4c by revising the second sentence to read as follows:]
    Packages at other rates must be sorted to 5-digit, 3-digit, 
optional SCF, and ADC destinations, as appropriate.
* * * * *
3.0  OPTIONAL BUNDLES--PERIODICALS AND STANDARD MAIL (A)

3.1  Standards

[Amend 3.1 by revising the second sentence to read as follows:]
    The palletized portion of a mailing may not include bundles sorted 
to mixed ADC or to foreign destinations.
* * * * *
4.0  PALLET PRESORT AND LABELING

4.1  Packages, Bundles, Sacks, or Trays

* * * * *
    e. As appropriate:

[Amend the beginning of (1) by adding ``(sacks and trays only)'' to 
read as follows:]
    (1) Periodicals (sacks and trays only): mixed ADC: optional; * * *
[Amend the beginning of (2) by adding ``(sacks and trays only)'' to 
read as follows:]
    (2) Standard Mail (sacks and trays only): mixed BMC: optional; * * 
*
* * * * *
5.0  PALLETS OF PACKAGES, BUNDLES, AND TRAYS
* * * * *
[Amend 5.3 to eliminate references to mixed BMC pallets to read as 
follows:]

5.3  BMC and Mixed BMC Pallets

    Packages and bundles placed on BMC pallets must be machinable on 
BMC parcel sorting equipment. Line 2 on pallet labels must reflect the 
processing category of the pieces. A BMC or mixed BMC (trays only) 
pallet may include pieces that are eligible for the DBMC rate and 
others that are ineligible if the mailer provides documentation showing 
the pieces that qualify for the DBMC rate.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-3952 Filed 2-17-98; 8:45 am]
BILLING CODE 7710-12-P