[Federal Register Volume 63, Number 134 (Tuesday, July 14, 1998)]
[Rules and Regulations]
[Pages 37946-38033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18271]



[[Page 37945]]

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Part II





Postal Service





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39 CFR Part 111



Domestic Mail Manual Changes to Implement the Rate, Fee, and 
Classification Changes in Docket No. R97-1; Final Rule

  Federal Register / Vol. 63, No. 134 / Tuesday, July 14, 1998 / Rules 
and Regulations  

[[Page 37946]]



POSTAL SERVICE

39 CFR Part 111


Domestic Mail Manual Changes To Implement the Rate, Fee, and 
Classification Changes in Docket No. R97-1

AGENCY: Postal Service.

ACTION: Final rule.

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

SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the rate, fee, and 
classification changes for all classes of mail included in the Decision 
of the Governors of the Postal Service in Postal Rate Commission Docket 
No. R97-1.

EFFECTIVE DATE: This final rule is effective at 12:01 a.m. on January 
10, 1999.

FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, 202-268-6351 (all 
topics); Paul Lettman, 202-268-6261 (Parcel Post); Thomas DeVaughan, 
202-268-4491 (Business Reply Mail).

SUPPLEMENTARY INFORMATION: On July 10, 1997, the Postal Service, acting 
under sections 3622 and 3623 of the Postal Reorganization Act (39 
U.S.C. 3622, 3623), filed a request for a recommended decision by the 
Postal Rate Commission (PRC) on proposed rate, fee, and classification 
changes. The PRC designated this filing as Docket No. R97-1. A notice 
of filing, with a description of the Postal Service's proposals, was 
published by the PRC on July 23, 1997, in the Federal Register (62 FR 
39660).
    On March 16, 1998, the Postal Service published for public comment 
in the Federal Register a proposed rule (63 FR 12864) that provided 
information on the implementation rules for the rate, fee, and 
classification changes that the Postal Service proposed to adopt if its 
requested changes in Docket No. R97-1 were recommended by the PRC and 
approved by the Governors of the Postal Service.
    Pursuant to 39 U.S.C. 3624, on May 11, 1998, the PRC issued its 
Recommended Decision on the Postal Service's Request to the Governors 
of the Postal Service. The PRC recommendations made revisions to some 
of the mail classification structure, rates, and fees requested by the 
Postal Service. Based on an extensive analysis of the PRC's Recommended 
Decision and deliberation as to its consequences to the Postal Service 
and its customers, and pursuant to 39 U.S.C. 3625, the Governors acted 
on the PRC's recommendations on June 29, 1998. The Governors determined 
to approve the PRC's Recommended Decision except for the recommended 
classifications and fees for Prepaid Reply Mail and the recommended 
``shell classification'' for Courtesy Envelope Mail. The Governors 
expressed concern about the necessity for these separate 
classifications. The Governors have encouraged management to consider 
whether refinements to the approved Qualified Business Reply Mail 
(QBRM) classifications and fees can be developed which improve upon the 
accounting options and fees approved for QBRM. The Postal Service plans 
to further study the issue of consumer automation discounts.
    The Governors allowed under protest, and returned to the Postal 
Rate Commission for reconsideration, the rate schedules for Within 
County Periodicals, Library Rate Mail, and DDU Parcel Post.
    The Board of Governors set an implementation date of January 10, 
1999, for the approved rate, fee, and classification changes to take 
effect, except for delivery confirmation and the electronic form of 
return receipt (signature confirmation) service for delivery 
confirmation customers. The Board of Governors determined that 
implementation of the new delivery confirmation service approved in the 
Governors' Decision, as well as the classification change allowing 
delivery confirmation as a sole prerequisite for return receipt 
service, should take place after the effective date established for the 
other changes approved and allowed by the Governors, but not later than 
June 1, 1999. Later implementation will provide time for deployment of 
the technology used to provide these service features. The Board of 
Governors determined that an effective date for delivery confirmation 
and the electronic form of return receipt (signature service) will be 
selected through future action by the Board.
    A notice announcing the Governors' decision and the issuance of 
final Domestic Mail Classification Schedule and Rate Schedule changes 
is contained in a separate notice to be published in the Federal 
Register.
    This final rule contains the DMM standards adopted by the Postal 
Service to implement the Governors' decision. The revised DMM standards 
will take effect on January 10, 1999. The standards for delivery 
confirmation and the electronic form of return receipt (signature 
confirmation) service are not included in this final rule. They will be 
contained in a separate Federal Register notice when an implementation 
date is set by the Board of Governors.
    Part A of this notice summarizes major changes that have been made 
to or added to the proposed implementation standards since the proposed 
rule. This includes changes made because of differences in the Postal 
Service's proposal and the PRC's recommended decision, changes made in 
response to the Governors' decisions, and changes made by the Postal 
Service in response to mailer comments or for other reasons. Part B 
provides a summary of all of the changes in Domestic Mail Manual 
standards made as a result of Docket No. R97-1 and this rulemaking 
process. Part C contains an analysis of comments received on the 
proposed rule and the Postal Service responses. Part D summarizes the 
changes to the DMM by DMM module, followed by the text of the revised 
DMM standards.

A. Major Changes and Additions Other Than Rate and Fee Levels Since 
the March 16, 1998, Proposed Rule

1. Express Mail

a. Hazardous Materials Surcharges
    The Postal Rate Commission did not recommend the proposed 
surcharges for hazardous medical materials and for other hazardous 
materials. Therefore, provisions for hazardous materials surcharges 
have not been included in the DMM.

2. Priority Mail

a. Hazardous Materials Surcharges
    The Postal Rate Commission did not recommend the proposed 
surcharges for hazardous medical materials and for other hazardous 
materials. Therefore, provisions for hazardous materials surcharges 
have not been included in the DMM.
b. Weight
    The weight at which heavy First-Class Mail pieces must be paid at 
the Priority Mail rates is increased from First-Class Mail weighing 
over 11 ounces to First-Class Mail weighing over 13 ounces. At the 
mailer's option, any other mail matter (including regular First-Class 
Mail weighing 13 ounces or less) may be mailed as Priority Mail.

3. First-Class Mail

a. Hazardous Materials Surcharges
    The Postal Rate Commission did not recommend the proposed 
surcharges for hazardous medical materials and for other hazardous 
materials. Therefore, provisions for hazardous materials surcharges 
have not been included in the DMM.

[[Page 37947]]

b. Heavy Piece Discount
    The additional heavy piece presort discount of $0.046 for the first 
ounce of mailpieces weighing more than 2 ounces remains in effect.
c. Maximum Weight
    The maximum weight of First-Class Mail is increased from 11 ounces 
to 13 ounces.
d. Prepaid Reply Mail
    Prepaid Reply Mail will not be implemented.

4. Periodicals

a. Eligibility for In-County High Density Rates
    Eligibility for the high density rate for In-County pieces will be 
revised to allow walk-sequenced pieces for a carrier route to qualify 
when there are either a minimum of 125 pieces for a carrier route or 
addressed pieces for at least 25 percent of the total active possible 
deliveries on a carrier route.

5. Standard Mail (A)

a. Hazardous Materials Surcharges
    The Postal Rate Commission did not recommend the proposed 
surcharges for hazardous medical materials and for other hazardous 
materials. Therefore, provisions for hazardous materials surcharges 
have not been included in the DMM.
b. ``Presorted Standard'' Marking
    A two-year transition period (instead of one year) will be 
permitted for mailers to change their ``Bulk Rate'' markings to 
``Presorted Standard.'' Until January 10, 2001, mailers of regular rate 
Standard Mail (A) material (matter at regular Presorted Standard Mail 
(A), regular automation, and regular Enhanced Carrier Route rates) may 
use either the ``Bulk Rate'' or the ``Presorted Standard'' markings or 
their respective authorized abbreviations on their mailings. At the 
mailer's option the ``Presorted Standard'' marking or its abbreviation 
may be used instead of ``Bulk Rate'' or its abbreviation effective 
immediately.
c. ``RSS'' Marking
    The Postal Service will not require a separate ``RSS'' marking for 
pieces that are subject to the residual shape surcharge.
d. Pieces Not Qualifying for Standard Mail
    (A). Mailers have indicated that they may have pieces prepared with 
Standard Mail (A) rate markings that cannot be mailed at a Standard 
Mail (A) rate under the provisions for ``residual'' pieces set forth in 
the proposed rule and this final rule. Reasons include the mailer 
having pieces remaining in a mailing job that cannot be matched to a 
correct 5-digit ZIP Code, or the mailer choosing not to hand-sort 
handwritten pieces that could not be barcoded and sorted by a multi-
line optical character reader (MLOCR). In such instances, mailers must 
pay single-piece First-Class Mail or Priority Mail postage on the 
pieces.
    If mailers desire to receive First-Class or Priority Mail service 
as applicable based on the weight of the mailpieces (including 
forwarding and return services), they must re-envelope or otherwise 
prepare the mailpieces so that they bear only the proper First-Class 
Mail or Priority Mail rate markings, ancillary service endorsements, 
Address Change Service (ACS) codes, etc. Metered pieces weighing over 
13 ounces and less than 16 ounces must always be prepared under this 
method.
    Except for metered pieces weighing over 13 ounces and less than 16 
ounces, mailers who do not desire to receive First-Class or Priority 
Mail service on such pieces may submit them ``as is'' (i.e., bearing 
the Standard Mail (A) markings and endorsements). No additional 
markings or postage are to be added to these pieces. First-Class Mail 
or Priority Mail postage must be paid for these pieces using the 
appropriate First-Class or Priority Mail postage statement. Except for 
metered pieces weighing over 13 ounces and less than 16 ounces, mail 
bearing metered or precanceled stamp postage must, under this option, 
pay the difference between the postage affixed and the First-Class Mail 
or Priority Mail rates by means of an advance deposit account or by 
affixing a meter strip for the appropriate amount to the postage 
statement. If the pieces weigh 13 ounces or less, mailers must use 
special line items on the new First-Class postage statements under the 
heading ``From Standard Mail (A)'' to record the pieces mailed. This 
option may be used for fewer than 200 pieces of permit imprint mail 
only if the pieces were part of a larger mailing job and are submitted 
for acceptance along with the mail and a Standard Mail (A) postage 
statement for the other pieces in the same mailing job. Metered pieces 
weighing over 13 ounces and less than 16 ounces cannot use this option 
since there is no postage statement on which they can be reported and 
therefore must be re-enveloped and prepared as Priority Mail.

6. Standard Mail (B)

a. Barcoded Discounts
    (1) Additional Barcode Option. A fourth barcode symbology, UCC/EAN 
Code 128, has been added. The USPS, in cooperation with the parcel 
shipping industry, has adopted the UCC/EAN Code 128 as its preferred 
code structure and symbology standard. The UCC/EAN Code 128 permits 
encoding of either the 5-digit ZIP Code or the ZIP+4 code. The ZIP Code 
information must be preceded by the Application Identifier ``420'' that 
signifies a domestic ZIP Code, and must not include the trailing 
verifier character ``9'' used with other barcode symbologies. The UCC/
EAN code 128 will become mandatory for the barcoded discount in five 
years (January 10, 2004). During the 5-year phase-in period, UCC/EAN 
Code 128, as well as USS Code 128; USS Code I 2/5; and USS Code 39 
symbologies will be permitted.
    (2) Numeric Equivalent of Barcode. The requirement to print human-
readable characters representing the numeric equivalent of the ZIP Code 
information in the barcode (i.e., omitting the verifier character or, 
for UCC/EAN Code 128, omitting the 3-digit application identifier 
characters) near the barcode will not be required if the barcode is on 
the same label as the address block and is placed in close proximity to 
the address. The human-readable numeric equivalent of the ZIP Code 
information in the barcode will be required for barcodes not printed on 
the same label as the address block on mailpieces.
    (3) Parcel Post ASF Barcoded Rate Exclusion. The exclusion from the 
barcoded discount of machinable pieces eligible for DBMC rates that are 
entered at an auxiliary service facility (ASF) has been revised. Since 
the Phoenix, Arizona, ASF has parcel barcode reading equipment, 
machinable pieces of Parcel Post DBMC rate mail entered at the Phoenix 
ASF will be eligible for barcoded discounts. Since no other ASFs have 
barcode reading equipment, DBMC rate mail entered at ASFs other than 
Phoenix will not be eligible for the barcoded discount.
b. Hazardous Materials Surcharges
    The Postal Rate Commission did not recommend the proposed 
surcharges for hazardous medical materials and for other hazardous 
materials. Therefore, provisions for hazardous materials surcharges 
have not been included in the DMM.

[[Page 37948]]

c. Parcel Post BMC Presort and OBMC Presort Discounts
    (1) Mail Preparation. The proposed requirement to prepare 
machinable parcels in pallet boxes measuring 72 inches high and to fill 
the boxes with at least 54 inches of mail to qualify for these 
discounts is revised. The new requirement is to prepare machinable 
parcels in pallet boxes measuring 69 inches high and to fill the boxes 
with at least 52 inches of mail to qualify for these discounts. The 
preparation requirements for nonmachinable mail did not change.
    (2) Documentation. The requirement for documentation listing number 
of pieces per individual pallet is eliminated.
d. Parcel Post Oversized Pieces.
    The 10% limit per mailing of pieces that measure over 108 inches 
but not more than 130 inches in combined length and girth is removed. 
In its place the PRC recommended and the Governors of the Postal 
Service approved oversized rates for such pieces. These oversized rates 
are greater than the rates for 70-pound parcels.
e. Parcel Post DSCF Rate
    (1) Sacking Requirements Revised. The minimum number of pieces per 
5-digit sack is revised from 10 pieces to 7 pieces. A provision also is 
added to allow one overflow sack per 5-digit destination. The overflow 
sack has no minimum quantity requirement.
    (2) New Pallet Preparation Option Added. In response to mailer 
comments that the pallet minimums were too high, a new pallet 
preparation option has been added. This option allows preparation of 5-
digit pallets with a minimum of 35 pieces and 200 pounds of mail, 
provided the average number of pieces placed on pallets qualifying for 
the DSCF rate in such a mailing is at least 50 pieces. In order to 
document that no pallet contains less than 35 pieces and 200 pounds and 
that the average number of pieces per pallet claiming the DSCF rate is 
at least 50 pieces, mailers will be required to submit detailed 
documentation and place sequential identification numbers on qualifying 
pallets of DSCF rate mail. The documentation must list each pallet in 
sequential order by pallet identification number. The listing must show 
for each pallet: the pallet identification number, the 5-digit ZIP Code 
of the pallet, the total weight of pieces on the pallet, the total 
number of pieces on the pallet, and the cumulative total of pieces 
(i.e., the number equal to the number of pieces for that pallet plus 
the sum of the pieces on all pallets listed above it).
    (3) Overflow Provisions for Palletized Mail Added. Provisions are 
added to allow overflow from 5-digit pallets to be placed in 
corresponding 5-digit sacks. The overflow 5-digit sacks have no minimum 
quantity requirement, and the pieces placed in them will qualify for 
the DSCF rate. Mailers will also have the option of preparing a 5-digit 
overflow pallet. However, the pieces on overflow pallets, which by 
definition contain less than the minimum quantity required for a 
qualifying DSCF rate pallet, are not eligible for DSCF rates and are 
subject to the DBMC rates.
    (4) Pallet Boxes. The prohibition against use of pallet boxes on 
pallets for the DSCF rate is eliminated. Pallet boxes on pallets will 
be permitted for any 5-digit facility that can handle pallets, provided 
the pallet boxes measure no more than 60 inches high and meet the 
pallet box provisions in DMM M041. Mail prepared in pallet boxes is 
subject to the same pallet minimum preparation options as parcels 
placed directly on pallets.
    (5) Sacks on Pallets. Under DMM M045.12, mailers may consolidate 5-
digit sacks prepared under DMM M630 and/or under DMM M045.11 that 
qualify for the DSCF rate on an SCF pallet. Both 5-digit sacks meeting 
or exceeding the 7-piece minimum and overflow sacks (overflow from 
sacks and overflow from pallets) may be palletized in this manner. 
However, if in the same mailing, mail is palletized under M045.11.1 and 
sacked under M630, the sacks that are prepared as overflow from pallets 
must, at the time of acceptance, be separated from sacks prepared under 
M630. SCF pallets containing 5-digit sacks qualifying for the DSCF rate 
may be prepared without having to first prepare all possible 5-digit 
pallets and without having to meet a 250-pound pallet minimum. A 
special pallet label is specified for these pallets in M045.
    (6) Additional Information Pertaining to Drop Shipment Product. 
Mailers must use the following additional information when using the 
Drop Shipment Product to determine whether mail for a 5-digit ZIP Code 
delivery unit may be prepared on pallets to qualify for the DSCF rate. 
The DMM standards are revised to specify that when the Drop Shipment 
Product shows that mail for a single 5-digit ZIP Code area is delivered 
from more than one facility, the facility listed in the Drop Shipment 
Product that delivers mail to the majority of city carrier routes will 
be considered the delivery unit for parcel post. Two exhibits, Exhibits 
E652.6.0 and 652.7.0 that contain exceptions to the ``majority of city 
carriers'' rule, are also added to the DMM. If a 5-digit ZIP Code is 
listed in DMM Exhibit E652.6.0 or E652.7.0, the facility listed in one 
of those exhibits must be used to determine the name of the delivery 
unit. The name of the delivery unit must then be looked up in the Drop 
Shipment Product to determine if mail for it, and therefore mail for 
the 5-digit ZIP Code, can be prepared on pallets to qualify for the 
DSCF rate. At some point in the future the information in these two 
exhibits will be incorporated in the Drop Shipment Product.
    (7) Nonmachinable Outsides. Nonmachinable outside (NMO) parcels by 
definition cannot be prepared in sacks because they will not fit in a 
sack. Therefore, NMOs must be prepared directly on pallets or in pallet 
boxes on pallets. If overflow pallets are prepared, the pieces on such 
pallets are subject to the DBMC rates. The DSCF rate is not available 
for NMOs at those 5-digit delivery units that cannot handle palletized 
mail as listed in the Drop Shipment Product and in Exhibits E652.6.0 
and E652.7.0.
    (8) Exceptions to DMM Exhibit E652.5.0. Provisions are added to 
allow mailers to submit a written request to the Area Manager, 
Operations Support, for permission to bring palletized mail for a 5-
digit ZIP Code area listed in DMM Exhibit E652.5 to the DSCF rather 
than to the applicable BMC. Such exceptions must be requested at least 
15 days in advance and may be granted for a limited period of time 
only.
    (9) Separation of Perishable and Nonperishable Parcels. The 
requirement to separate perishable and nonperishable parcels is deleted 
from the final DMM rules.
f. Parcel Post DDU Rate
    (1) Pallet Boxes. The prohibition against the use of pallet boxes 
on pallets is eliminated. Pallet boxes on pallets will be permitted for 
any 5-digit facility that can handle pallets, provided that the pallet 
boxes measure no more than 60 inches high and meet the pallet box 
provisions in DMM M041.
    (2) Additional Lists Pertaining to Drop Shipment Product. Mailers 
must use the following additional information when using the Drop 
Shipment Product to determine the location of the delivery unit for a 
5-digit ZIP Code area. When mail for a single 5-digit ZIP Code area is 
delivered from more than one facility, the facility listed in the Drop 
Shipment Product that delivers mail to the majority of city carrier 
routes is the delivery unit at which mail must be entered to claim the 
DDU rate. There are two exceptions to this general rule. Two

[[Page 37949]]

exhibits, Exhibit E652.6.0 and Exhibit E652.7.0 are added to DMM E652. 
Exhibit E652.6.0 contains exceptions to the ``majority of city carrier 
routes'' rule. Exhibit E652.7.0 contains other anomalous situations 
including those where a parcel annex is used to deliver mail for 
multiple 5-digit ZIP Codes. If a 5-digit ZIP Code is listed in DMM 
Exhibit E652.6.0 or Exhibit E652.7.0, the facility location in one of 
those lists is the delivery unit to which the mail must be brought to 
qualify for the DDU rate. This facility must be looked up in the Drop 
Shipment Product to determine if that facility can handle pallets and 
(for facilities listed in Exhibit E652.6.0) to determine the address of 
the facility.
    (3) Pallet Stacking. Mailers may stack pallets of mail entered at 
destination delivery units provided that the mailer unloads and 
unstacks the pallets at the delivery unit and removes any strapping 
material.
    (4) Appointments. To facilitate the scheduling of drop shipments to 
delivery units, the Postal Service will allow standing appointments if 
shipment frequency is weekly or more often. A provision also has been 
added in E652.3.4 to specify that appointments are required for mixed 
loads of Periodicals and Standard Mail (B) entered at destination entry 
rates. DMM E250.2.4 already contains a similar provision for DDU entry 
of mixed loads of Periodicals and Standard Mail.
    (5) Grace Period for Late Arrivals. The grace period allowed for 
late arrival of shipments at DDUs, previously stated to be 1 hour, is 
revised to 20 minutes.
g. Markings
    (1) Parcel Post. Except for mail qualifying for a drop shipment 
rate, mailers will be given a one-year grace period, until January 10, 
2000, to print the ``Parcel Post'' or ``PP'' markings in the postage 
area. As of January 10, 1999, Drop Shipment rate mail must show the 
``Parcel Post'' or ``PP'' marking in the postage area and the marking 
``Drop Ship'' or ``D/S'' in either the postage area or on the line 
above or two lines above the address. An exception is that DBMC rate 
mailers currently using the ``DBMC Parcel Post'' or ``DBMC PP'' marking 
may continue to do so until January 10, 2000.
    (2) Standard Mail (B) Other than Parcel Post. Mailers not already 
doing so will have until January 10, 2000, to place the current 
required subclass markings ``Bound Printed Matter,'' ``Special 
Standard,'' and ``Library Mail'' or ``Library Rate'' in the postage 
area (as opposed to elsewhere on the mailpiece).
    (3) Bound Printed Matter. At the mailer's option the ``Presorted'' 
marking may be used instead of ``Bulk Rate'' effective immediately. 
(This marking will be required effective January 10, 2000.) In 
addition, mailers may use the marking ``Presorted Standard'' (or 
``PRSRT STD'') instead of ``Presorted'' (or ``PRSRT'') wherever the 
``Presorted'' marking is required or permitted.

7. Special Services

a. Bulk Insurance
    A provision requiring an electronic manifest to qualify for the 
bulk insurance discount was recommended by the PRC and approved by the 
Governors of the Postal Service. Therefore, one of the requirements to 
obtain this discount will be to provide a hard copy of Form 3877, Firm 
Mailing Book for Accountable Mail (or facsimile), and a copy of Form 
3877 on a diskette or other electronic medium. When systems that 
electronically capture information on accountable mail are completed 
and programming changes that will tie the St. Louis ASC into these 
systems are completed, mailers will be required to file claims 
electronically. When or before these changes and systems are completed, 
bulk insurance mailers will be provided with instructions for a new 
format for the electronic Form 3877 and with instructions for 
electronically filing claims.
b. Business Reply Mail
    Mailers will have until January 10, 2001, to comply with the 
standard that Qualified Business Reply Mail pieces and other BRM pieces 
bearing a barcode that measure more than 4\1/4\ inches by 6 inches must 
meet a minimum thickness requirement of .009 inch. In addition, mailers 
of QBRM and other BRM pieces that bear a barcode will be given until 
January 10, 2001, to meet the amended requirements for the barcode 
clear zone, window placement for lower right barcodes, and placement of 
the leftmost bar of lower right barcodes. The barcode specifications 
that are in DMM C840 will be required, rather than optional. The basis 
weight requirement for envelopes in C810.7.1 will not apply to BRM. BRM 
envelopes must continue to meet a minimum paper basis weight of 20 
pounds (measured using 500 sheets of 17- by 22-inch paper). The 
standard in current S922.6.4 that envelope material must not have a 
phosphorescence exceeding 4.0 phosphor meter units is retained and 
corrected to state that envelope material must not have a red 
fluorescence exceeding 4.0 phosphor meter units.
c. Delivery Confirmation
    Standards concerning delivery confirmation were removed pending an 
implementation date.
d. Merchandise Return Service
    The Postal Service revised the requirements for preprinted rate 
markings. The Priority Mail marking will not be required to be 
preprinted on all matter that might be subject to that rate upon 
return. It is understood that permit holders may not be able to predict 
whether a piece that might be returned will weigh over 13 ounces but 
less than 16 ounces and therefore need a Priority Mail marking on the 
merchandise return label. Therefore, the permit holder must preprint a 
Priority Mail marking only when it is desired that the mail matter be 
returned at those rates regardless of its weight. Pieces prepared with 
merchandise return labels that do not contain a preprinted rate marking 
will be returned at the First-Class Mail rates if weighing 13 ounces or 
less, at the Priority Mail rates if weighing over 13 ounces but less 
than 16 ounces, and at the Parcel Post rates if weighing 16 ounces or 
more.
d. Return Receipt
    The Postal Service determined not to revise DMM D042.1.7.

B. Summary of all DMM Revisions for R97-1

1. Express Mail

a. Rate Highlights
    Overall, Express Mail rates will increase 9%. For Post Office to 
Addressee service, the letter rate will increase to $11.75 and the 2-
pound flat rate will increase to $15.75. The fee for pickup service 
will increase from $4.95 to $8.25 per occurrence.
b. Rate Structure
    There are no changes to the rate structure.

2. Priority Mail

a. Rate Highlights
    On average, Priority Mail rates will increase 5.6%. The fee for 
pickup service will increase from $4.95 to $8.25 per occurrence.
b. Classification and Rate Structure
    (1) Keys and Identification Devices. Keys and identification 
devices that weigh more than 13 ounces but not more than 2 pounds will 
be subject to the 2-pound Priority Mail rate plus a $0.30 fee.
    (2) Elimination of Presort Category. The Presorted Priority Mail 
rate category

[[Page 37950]]

will be eliminated. Therefore, DMM labeling list L102, ADCs--Presorted 
Priority Mail, also will be eliminated.
    (3) Delivery Confirmation. A new delivery confirmation service will 
be available with Priority Mail in early 1999. See further details 
under ``Special Services.''

3. First-Class Mail

a. Rate Highlights
    The single-piece first-ounce letter rate will be increased one cent 
from $0.32 to $0.33, and the rate for each additional ounce will 
decrease to $0.22. The nonstandard surcharges for non-card-rate pieces 
will not increase and will remain at $0.11 for single-piece rate mail 
and $0.05 for presorted mail. For card rates, no change will be made to 
the single-piece rates, nonautomation Presorted rates, automation 3-
digit rates and automation basic rates. No change will be made to \3/
5\-digit automation flat rates. Small increases will be made to other 
automation rates and Presorted rates. The annual presort mailing fee 
will be increased from $85.00 to $100.00.
b. Classification and Rate Structure
    (1) Increase in Maximum Weight. The maximum weight of First-Class 
Mail will be increased from 11 ounces to 13 ounces.
    (2) Keys and Identification Devices. Keys and identification 
devices that weigh 13 ounces or less will be subject to the applicable 
single-piece letter rate, plus a $0.30 fee and, if applicable, the 
nonstandard surcharge.
    (3) Qualified Business Reply Mail. A new classification category 
and rate structure for qualified business reply mail (QBRM) that must 
be letter-size (including cards), automation-compatible, and barcoded 
will be added. As a result, the BRMAS fee category will be eliminated. 
The rate structure for QBRM includes a lower first-ounce rate. The fee 
structure for QBRM requires an annual permit fee, an annual accounting 
fee, and a fee for each piece returned. More specific requirements for 
this new classification category are described under DMM E150 and under 
``Special Services'' below.
c. Rate Markings
    The abbreviation ``PRSRT'' will be permitted for the required 
``Presorted'' marking.

4. Periodicals

a. Rate Highlights
    There will be average rate increases of 4.6% for Regular, 1.1% for 
In-County, 8.0% for Nonprofit, and 12.1% for Classroom publications. 
Authorization fees will not change, except that the additional entry 
fee decreases from $85.00 to $50.00.
b. Classification and Rate Structure
    (1) Per-Piece Rates. Separate 5-digit presort per-piece rates and 
3-digit presort per-piece rates will be added for Regular, Nonprofit, 
Classroom, and In-County subclasses. Furthermore, the 3-digit presort 
level rates will apply to both unique and nonunique 3-digit ZIP Code 
prefixes.
    To qualify for the nonautomation 5-digit per-piece rates, mail must 
be prepared in a 5-digit package of six or more pieces and must be 
containerized as follows: for letter mail, be placed in a 5-digit tray; 
for nonautomation flat mail, be placed in a 5-digit sack or on any 
presort level of pallet. To qualify for automation 5-digit per-piece 
rates for letters, mail must be part of a group of 150 pieces for the 
same 5-digit or 5-digit scheme, properly placed in a 5-digit or 5-digit 
scheme tray. To qualify for automation 5-digit per-piece rates for 
flats, mail must be prepared in a 5-digit package of six or more pieces 
and placed in any level of sack or on any level of pallet.
    To qualify for the nonautomation 3-digit per-piece rates, sacked 
flat-sized mail must be prepared in a 5-digit package of six or more 
pieces or in a 3-digit package of six or more pieces, and must be 
placed in a 3-digit sack; trayed letter-size mail must be prepared in a 
5-digit package of six or more pieces or in a 3-digit package of six or 
more pieces, and must be placed in a 3-digit tray. Palletized flat-
sized mail must be prepared in a 3-digit package of six or more pieces 
and placed on a 3-digit or higher (e.g., SCF, ADC) level of pallet.
    To qualify for automation 3-digit per-piece rates for letters, mail 
must be part of a group of 150 pieces for the same 3-digit or 3-digit 
scheme and be properly placed in a 3-digit or 3-digit scheme tray. To 
qualify for automation 3-digit per-piece rates for flats, mail must be 
prepared in a 3-digit package of six or more pieces and placed in a 3-
digit or higher (e.g. ADC or mixed ADC) level of sack or on a 3-digit 
or higher (e.g., SCF, ADC) level of pallet.
    (2) Eligibility for In-County High Density Rates. Eligibility for 
the high density rate for In-County pieces will be revised to allow 
walk-sequenced pieces for a carrier route to qualify when there are 
either a minimum of 125 pieces for the carrier route, or addressed 
pieces for at least 25 percent of the total active possible deliveries 
on the carrier route.
c. Mail Preparation
    (1) Automation Letters. Preparation of the 5-digit or 5-digit 
scheme sort for letter-size automation rate mailings will be revised 
from a required level of sort to an optional level of sort.
    (2) SCF Sack. The current optional SCF sack for nonletter mail will 
be revised to a required level of preparation. Preparation of an 
optional origin/required entry SCF sack will be added. Preparation of 
an optional origin/required entry 3-digit sack will be eliminated. SCF 
packages are not and will not be permitted.
d. Forwarding and Return
    Charges for the return of Periodicals mail bearing the ``Address 
Service Requested'' endorsement will be paid at the First-Class Mail 
rates for pieces weighing 13 ounces or less and at the Priority Mail 
rates for pieces weighing more than 13 ounces. (Priority Mail rates 
also apply to pieces weighing 16 ounces or more.) This is due to the 
elimination of the Standard Mail (A) single-piece rates discussed 
below.

5. Standard Mail (A)

a. Rate Highlights
    There will be average rate increases of 2.6% for Regular, 2.3% for 
Enhanced Carrier Route, and 14.0% for Nonprofit subclasses. On average, 
there will be a 8.0% decrease in Nonprofit Enhanced Carrier Route 
rates. Nonprofit and Nonprofit ECR pound rates will decrease. Regular 
and ECR pound rates will remain the same. For the first time, the 
automation 5-digit letter rate will be lower than the basic Enhanced 
Carrier Route rate. The basic Enhanced Carrier Route minimum per-piece 
rates will be the same for letter-size and for nonletter-size pieces. 
The destination entry discounts will maintain their current discount 
differentials between BMC and SCF and between SCF and DDU. The annual 
presort mailing fee will increase from $85.00 to $100.00.
b. Rate Structure
    (1) Elimination of Single-Piece Rates. The single-piece Standard 
Mail (A) rates will be eliminated. This will affect the treatment of 
pieces in situations where there are fewer than 200 pieces remaining in 
a mailing job after preparation of an Enhanced Carrier Route and/or an 
automation rate mailing, situations in which there are fewer than 200 
pieces in a mailing job, or situations in which the pieces are not or 
may not be presorted. See ``Mail Preparation'' below for further 
information. It also affects the fees for forwarding and return of 
Standard Mail

[[Page 37951]]

(A) as described below under ``Forwarding and Return.'' With one 
exception, single pieces that weigh less than 16 ounces will be subject 
to return postage at single-piece First-Class or Priority Mail rates 
multiplied by 2.472. The exception is that single pieces weighing less 
than 16 ounces that could qualify for single-piece Special Standard 
Mail or Library Mail rates will continue to be eligible for those rates 
upon return if properly endorsed because there are no minimum weight 
requirements for those two subclasses of Standard Mail (B).
    (2) Residual Shape Surcharge. Pieces that are prepared as parcels 
or that are not letter-size or flat-size will be subject to a $0.10 per 
piece residual shape surcharge in addition to the applicable nonletter 
postage. This surcharge applies to such pieces mailed at all Standard 
Mail (A) subclasses (Regular, Enhanced Carrier Route, Nonprofit, 
Nonprofit Enhanced Carrier Route).
c. Mail Preparation
    (1) Bulk Rate Markings and Nomenclature. Effective January 10, 
2001, the basic rate marking requirements for regular rate mailings 
(including Enhanced Carrier Route) will be changed from ``Bulk Rate'' 
or ``Blk. Rt.'' to ``Presorted Standard'' or ``PRSRT STD.'' During the 
two-year transition period, either the ``Bulk Rate'' or the ``Presorted 
Standard'' markings or their authorized abbreviations will be 
acceptable. For consistency, the DMM will use the term ``Presorted 
Standard Mail (A)'' or ``Presorted Standard'' when referring to the 
mailings and rates currently referred to as ``nonautomation presort (3/
5 and basic) Standard Mail (A).'' At the mailer's option the 
``Presorted Standard'' or ``PRSRT STD'' marking may be used instead of 
``Bulk Rate'' effective immediately.
    (2) Markings for Standard Mail (A) Matter Paid at Standard Mail (B) 
Rates. Effective January 10, 1999, mailings paid at Standard Mail (B) 
rates under the exception in DMM E612.4.6 must bear the appropriate 
Standard Mail (B) rate marking, not the applicable Standard Mail (A) 
rate marking. DMM E612.4.6 contains provisions that allow Standard Mail 
(A) matter weighing less than 16 ounces to pay Standard Mail (B) rates 
if those rates are lower than Standard Mail (A) rates and the matter 
and the mailing could qualify for the Standard Mail (B) rate except for 
weight. For example, if a mailer had flat-size printed matter pieces 
that met the qualifications for Bound Printed Matter in DMM E630 (until 
January 10, DMM E620) except that the pieces each weighed less than one 
pound, and if the applicable Bound Printed Matter Rates were less than 
the applicable Standard Mail (A) rates, the mailer could presort them 
as Standard Mail (A) flats and claim basic presorted Bound Printed 
Matter rates. Under this example, if the pieces weighed four ounces and 
the mailing was only for the local zone, the Bound Printed Matter rates 
would be lower than the Presorted Standard Mail (A) rates. Therefore, 
the mailer could claim local zone Bound Printed Matter rates if: (1) 
the pieces are presorted according the Presorted Standard Mail (A) 
requirements to 5-digit, 3-digit, ADC, and Mixed ADC (that are similar 
to the presort requirements for presorted Bound Printed Matter), (2) 
the pieces are marked ``Presorted'' or ``Presorted Standard'' and 
``Bound Printed Matter,'' and (3) documentation is submitted to 
substantiate that the pieces qualified for the local zone rate.
    (3) Elimination of Single-Piece Rates. Currently, Standard Mail (A) 
single-piece rates apply to pieces that cannot meet the separate 
minimum volume requirement of 200 pieces for a Presorted Standard 
mailing either because the mailing job itself contains fewer than 200 
pieces or because after preparing an Enhanced Carrier Route and/or 
automation mailing the pieces remaining in the mailing job are fewer 
than 200. Other instances where single-piece rates currently apply 
include mailers using MLOCRs to prepare the mail who may have pieces 
remaining in a mailing job that could not be matched to a 5-digit ZIP 
Code, or mailers who choose not to hand-sort handwritten pieces that 
could not be barcoded and sorted by a MLOCR. The single-piece Standard 
Mail (A) rate is eliminated. Mailers will now have three options 
concerning preparation and payment for mailing pieces that formerly 
were paid at the single-piece Standard Mail (A) rates.
    Option one applies to pieces that remain in a mailing job after a 
mailer has prepared an Enhanced Carrier Route and/or an automation 
mailing. A new provision in DMM E630.1.1 and 1.2 will allow pieces in 
an Enhanced Carrier Route rate mailing and/or in an automation rate 
mailing that have each separately met a 200-piece or 50-pound minimum 
quantity requirement to be counted toward the minimum quantity 
requirement for a Presorted Standard (\3/5\ and basic rate) mailing, 
provided that (1) the Enhanced Carrier Route rate mailing and/or the 
automation mailing, and the Presorted Standard mailing are part of the 
same mailing job, and (2) the mailings are all reported on the same 
postage statement. Under no circumstances may pieces mailed at the 
Presorted Standard (nonautomation \3/5\ and basic) rates be counted 
toward the minimum volume requirements for an Enhanced Carrier Route or 
an automation rate mailing. The pieces mailed at the Presorted Standard 
rates under this provision must meet all other requirements for those 
rates, including the sortation and other preparation requirements in 
M610. As prescribed in DMM M610.1.1e, the pieces mailed at the 
Presorted Standard rates must not bear any Enhanced Carrier Route or 
automation markings. Only ``Presorted Standard'' (or, until January 10, 
2001, ``Bulk Rate''), ``Nonprofit Organization,'' or their applicable 
authorized abbreviations may appear on pieces mailed at the Presorted 
Standard rates.
    Options two and three apply to mailings that cannot qualify for the 
Presorted Standard Mail rates under the above provisions for residual 
minimum volume. These might be mailings containing fewer than 200 
pieces that cannot be reported on the same postage statement as other 
mailings in the mailing job because the pieces have a different per 
piece weight (because of different editions in the same job). They 
could also be pieces remaining after sorting a mailing job that could 
not be matched to a correct 5-digit ZIP Code, or pieces that could not 
be barcoded and sorted by a MLOCR because they bear handwritten 
addresses and the mailer chose not to hand-sort the pieces. In such 
instances, mailers must pay single-piece First-Class Mail or Priority 
Mail postage on the pieces.
    Option two is for mailers of such pieces who desire to receive 
First-Class or Priority Mail service (including forwarding and return 
services) on such pieces as applicable, based on the weight of the 
mailpieces. Under this option, mailers must re-envelope the pieces or 
initially prepare them so that they bear only the proper First-Class 
Mail or Priority Mail markings, ancillary service endorsements, ACS 
codes, etc. These pieces must not bear Standard Mail (A) markings, 
endorsements or ACS codes. This option will also be required for 
metered mailpieces weighing over 13 ounces, but less than 16 ounces, 
that cannot be mailed under option one.
    Option three is for mailers who have pieces (other than metered 
pieces weighing over 13 ounces, but less than 16 ounces) that cannot 
qualify for the Presorted Standard Mail (A) rates, but that are 
prepared as Standard Mail (A), and who do not desire to receive First-
Class Mail or Priority Mail service for those pieces. Under this option 
the pieces may be submitted ``as is'' (i.e., bearing the Standard Mail 
(A) markings

[[Page 37952]]

and endorsements). No additional markings or postage are to be added to 
these pieces. Single-piece First-Class Mail or Priority Mail postage 
must be paid for these pieces using the appropriate First-Class or 
Priority Mail postage statement. Mail bearing metered or precanceled 
stamp postage must pay the difference between the postage affixed at 
the Standard Mail (A) rates and the single-piece First-Class Mail or 
Priority Mail rates by means of an advance deposit account or by 
affixing a meter strip for the appropriate amount to the postage 
statement. Mail bearing permit imprints must pay the single-piece 
First-Class or Priority Mail postage by completing the appropriate 
First-Class or Priority Mail postage statement. If the pieces weigh 13 
ounces or less, mailers must use special line items under Part C on the 
reverse side of Form 3600-R, Postage Statement--First-Class Mail Permit 
Imprint, or Form 3600-P, Postage Statement--First-Class Mail Postage 
Affixed. The new line items on the postage statements appear under the 
heading ``From Standard Mail (A).'' If the pieces weigh over 13 ounces 
but less than 16 ounces, and are paid with permit imprint, Form 3600-
PM, Postage Statement--Priority Mail Permit Imprint, must be 
appropriately completed to show that the pieces are from a Standard 
Mail (A) mailing. Option 3 may be used for permit imprint mail only if 
there are at least 200 pieces to be mailed under this option, or if the 
pieces were part of a larger mailing job and are submitted for 
acceptance along with the mail and a Standard Mail (A) postage 
statement for the other pieces in the same mailing job.
    d. Forwarding and Return. With two exceptions, charges for the 
forwarding and return of Standard Mail (A) are paid at the First-Class 
Mail rates for pieces weighing 13 ounces or less and at the Priority 
Mail rates for pieces weighing over 13 ounces. This is because single-
piece Standard Mail (A) rates have been eliminated as discussed above. 
The exceptions are (1) matter returned under Bulk Parcel Return Service 
(BPRS) and (2) matter that qualifies for a single-piece Special 
Standard Mail or Library Mail rate under DMM E630 and is endorsed to 
show that forwarding and return is requested at one of those rates.

6. Standard Mail (B)

a. Rate Highlights
    Some Parcel Post rates will decrease and many will increase, some 
as much as 30%. New rate categories and discounts will be added to 
Parcel Post as described in 6b below. On average, Bound Printed Matter 
rates will increase 5%. The discount will increase for sorting Bound 
Printed Matter to carrier route. Special Standard Mail rates will 
decrease. Library Mail rates will be the same as Special Standard Mail 
rates, resulting in a rate increase. The annual fees for destination 
bulk mail center (DBMC) rates and presorted Special Standard Mail will 
increase from $85.00 to $100.00. The fee for pickup service for Parcel 
Post will increase from $4.95 to $8.25 per occurrence. (Pickup service 
is not available for mailings claiming Parcel Post destination entry 
rates or Origin Bulk Mail Center (OBMC Presort) Presort discounts.)
b. Rate Structure for All Standard Mail (B)
    (1) Barcoded Discount. A discount of $0.03 per piece will apply to 
machinable pieces in mailings meeting a 50-piece minimum quantity 
requirement that bear a correct and properly prepared barcode 
representing the 5-digit ZIP Code (or, for UCC/EAN Code 128, the ZIP+4 
code) of the address on the mailpiece. Mail for each Standard Mail (B) 
subclass (Parcel Post, Bound Printed Matter, Special Standard, and 
Library Mail) must separately meet the 50-piece minimum volume 
requirement.
    The barcode specifications and clear zone requirements are in DMM 
C850. UCC/EAN Code 128 as well as USS Code 128; USS Code I 2/5; and USS 
Code 39 symbologies will be permitted until January 10, 2004. Beginning 
January 10, 2004, only UCC/EAN Code 128 will be permitted. For all 
barcode symbologies except UCC/EAN Code 128, the barcode must represent 
the correct 5-digit ZIP Code of the address on the mailpiece followed 
by the verifier character ``9.'' The UCC/EAN Code 128 barcode must 
represent either the correct 5-digit ZIP Code or the ZIP+4 code for the 
address on the mailpiece. For the UCC/EAN Code 128 barcode, the ZIP 
Code information must be preceded by the Application Identifier ``420'' 
that signifies a domestic ZIP Code, and must not include the trailing 
verifier character ``9'' used with the other barcode symbologies. 
Mailers must print human-readable characters representing the numeric 
equivalent of the ZIP Code information in the barcode (i.e., omitting 
the verifier character or, for UCC/EAN Code 128, omitting the 3-digit 
application identifier characters) preceded by the word ``ZIP'' near 
the barcode. An exception is that the numeric equivalent of the ZIP 
Code information in the barcode will not be required if the barcode is 
on the same label as the address block and is placed in close proximity 
to the address.
    The barcoded discount reflects the savings for parcels that are 
routinely processed individually on BMC parcel sorters equipped with 
barcode readers. Therefore, the discount will not be available for 
nonmachinable parcels and will not be available for parcels that are 
intended to bypass individual BMC sortation. The barcoded discount will 
therefore not be available for: (1) any nonmachinable parcel, (2) 
Parcel Post mail entered at destination sectional center facility 
(DSCF) rates, (3) Parcel Post mail entered at destination delivery unit 
(DDU) rates; (4) Parcel Post DBMC rate mail entered at any auxiliary 
service facility (ASF) other than the ASF at Phoenix, AZ (which has 
barcode readers), (5) Bound Printed Matter at the Carrier Route rates, 
and (6) Presorted Special Standard Mail at the 5-digit rate.
    (2) Delivery Confirmation. A new delivery confirmation service will 
be available for Standard Mail (B) in early 1999. See further details 
under ``Special Services.''
c. Rate Structure for Parcel Post
    (1) Presort Discounts for Inter-BMC Rates. A new Origin Bulk Mail 
Center Presort (OBMC Presort) discount of $0.57 per piece will be 
available for mail entered at a BMC that meets sortation criteria 
specific for the type of parcel. Machinable parcels must be sorted to 
BMCs and nonmachinable parcels must be sorted to BMCs and ASFs. A new 
BMC Presort discount of $0.22 per piece will be available for pieces 
that are sorted in the same manner as those qualifying for the OBMC 
Presort discount (sorted to BMCs if machinable parcels or sorted to 
BMCs and ASFs if nonmachinable parcels) and entered at any postal 
facility other than a BMC that accepts bulk mailings. To qualify for 
either of these rates, pieces must be part of a mailing of at least 50 
pieces mailed at Parcel Post rates. See ``Mail Preparation'' below for 
more details.
    (2) Drop Shipment Rates. New destination delivery unit (DDU) rates 
will be available for pieces entered at the delivery unit from which 
the parcels are delivered. DDU rate pieces must be part of a mailing of 
at least 50 pieces mailed at Parcel Post rates. New rates will also be 
available for pieces entered at the destination sectional center 
facility (DSCF). DSCF rate pieces must be part of a mailing of at least 
50 pieces mailed at Parcel Post rates. DSCF rate pieces must be sorted 
to 5-digit ZIP Codes as described under ``Mail Preparation'' below.
    (3) Balloon Rate. Any item weighing less than 15 pounds and 
measuring over 84 inches (but not more than 108

[[Page 37953]]

inches) in combined length and girth will be charged the applicable 
Parcel Post rate for a 15-pound parcel.
    (4) Oversized Pieces. Pieces in a Parcel Post mailing will be 
permitted to measure over 108 inches, but not more than 130 inches, in 
combined length and girth. These pieces will be charged new oversized 
rates which are higher than the 70-pound rates.
d. Markings
    (1) General. Currently, mailers are required to place subclass 
markings ``Bound Printed Matter,'' ``Special Standard,'' and ``Library 
Rate'' or ``Library Mail'' (or authorized abbreviations) on pieces 
qualifying for those rates. However, the Domestic Mail Manual does not 
clearly specify where on the mailpiece these markings must appear. 
Effective January 10, 2000, the current required subclass markings 
(``Bound Printed Matter,'' ``Special Standard,'' and ``Library Rate'' 
or ``Library Mail'') or their authorized abbreviations will be required 
to be placed in the postage area on each mailpiece (i.e., be printed or 
produced as part of, or directly below, or to the left of the permit 
imprint indicia, meter stamp or impression, or adhesive or precanceled 
stamp). The Postal Service prefers that mailers begin to do this as 
soon as possible.
    (2) Parcel Post Mail. Except for mail qualifying for drop shipment 
rates, mailers will have until January 10, 2000, to place a ``Parcel 
Post'' or ``PP'' rate marking in the postage area on all Parcel Post 
Mail. Effective January 10, 1999, mailings qualifying for the new DSCF 
and DDU drop shipment rates must bear the marking ``Drop Ship'' or its 
abbreviation ``D/S'' and the marking ``Parcel Post'' or ``PP.'' The 
``Parcel Post'' or ``PP'' marking must appear in the postage area 
(printed or produced as part of, or directly below, or to the left of 
the permit imprint or metered postage) and the marking ``Drop Ship'' or 
``D/S'' must appear either in the postage area or in the line above or 
two lines above the address as described in DMM M012. DBMC rate mail 
will also be required to bear the ``Drop Ship'' and ``Parcel Post'' 
markings or authorized abbreviations according to these placement 
rules. However, since DBMC rate mail is currently required to bear the 
marking ``DBMC Parcel Post,'' the Postal Service is allowing mailers a 
one-year grace period to convert to the new marking. From January 10, 
1999, to January 10, 2000, DBMC rate mailers may use either ``DBMC 
Parcel Post'' or ``Parcel Post'' and ``Drop Ship'' (or their applicable 
abbreviations). Effective January 10, 2000, DBMC Parcel Post must bear 
the new ``Parcel Post'' and ``Drop Ship'' markings, or their applicable 
abbreviations.
    Effective January 10, 1999, the Postal Service is eliminating the 
requirement to show the 5-digit or 3-digit ZIP Code of the post office 
of mailing in the drop shipment marking if the postage for the piece is 
paid with a permit imprint and the office of mailing is in a different 
3-digit ZIP Code area from the post office in the return address. The 
requirement for a ``Bulk Rate'' marking also will be eliminated. 
Mailpieces bearing the 3-digit ZIP Code of the office of mailing and 
``Bulk Rate'' markings will be accepted until January 10, 2000.
    (3) Bound Printed Matter. Effective January 10, 2000, the ``Bound 
Printed Matter'' marking must appear in the postage area of single-
piece rate mail. Until January 10, 2000, the ``Bound Printed Matter'' 
marking may appear elsewhere on the mailpiece.
    The marking ``Bulk Rate'' or ``Blk. Rt.'' will be changed to 
``Presorted'' or ``PRSRT'' for bulk Bound Printed Matter mailings. The 
marking ``Presorted Standard'' or ``PRSRT STD'' also will be 
permissible. The ``Presorted'' or ``Presorted Standard'' portion of the 
marking will be permitted to appear in either the postage area or in 
the line above or two lines above the address. Mailers will be given 
until January 10, 2000, to begin using the new markings. Between 
January 10, 1999 and January 10, 2000, mailers may use either ``Bulk 
Rate'' or ``Presorted'' or their respective authorized abbreviation. At 
the mailer's option the ``Presorted'' marking may be used instead of 
``Bulk Rate'' effective immediately. The name of the rate category also 
is changing from bulk Bound Printed Matter to presorted Bound Printed 
Matter. At the mailer's option the ``Presorted'' marking may be used 
instead of ``Bulk Rate'' effective immediately. Between now and January 
10, 2000, the marking ``Bound Printed Matter'' may appear either in the 
postage area or in the line above or two lines above the address on 
presorted Bound Printed Matter. Effective January 10, 2000, the ``Bound 
Printed Matter'' marking on presorted Bound Printed Matter must appear 
in the postage area.
    For carrier route Bound Printed Matter, the need for the ``Bulk 
Rate'' marking in addition to the ``Carrier Route Presort'' marking 
will be eliminated effective January 10, 1999. Carrier route Bound 
Printed Matter mailings must show ``Bound Printed Matter'' in the 
postage area and ``Carrier Route Presort'' or ``CAR-RT SORT'' in the 
postage area or in the line above or two lines above the address. 
Mailers will be given until January 10, 2000, to place the ``Bound 
Printed Matter'' marking in the postage area. Effective January 10, 
1999, mailers will be permitted, but not required, to show the 
``Presorted'' or ``PRSRT'' (or ``Presorted Standard'' or ``PRSRT STD'') 
marking on carrier route Bound Printed Matter in addition to the 
required ``Bound Printed Matter'' and ``Carrier Route Presort'' or 
``CAR-RT SORT'' markings.
    The ``Catalog'' or ``Catalog Rate'' marking will be eliminated for 
Bound Printed Matter. Pieces bearing the ``Catalog'' or ``Catalog 
Rate'' markings will be accepted until January 10, 2000.
    (4) Special Standard. For Presorted Special Standard mail, the 
``Presorted'' portion of the current marking will be permitted to be 
abbreviated ``PRSRT'' and to appear either in the postage area or in 
the line above or two lines above the address. Effective January 10, 
2000, the ``Special Standard'' marking must be placed in the postage 
area.
f. Mail Preparation--OBMC Presort Discount
    To qualify for the Origin Bulk Mail Center Presort (OBMC Presort) 
discount, a mailpiece must be part of a mailing of at least 50 Parcel 
Post rate pieces. Pieces eligible for the OBMC Presort rate must be 
entered at a BMC listed in DMM L601.
    Machinable parcels at OBMC Presort rates must: (1) be sorted to 
BMCs using DMM labeling list L601 and, (2) be prepared in 69-inch 
pallet boxes placed on pallets, each labeled to a BMC and each 
containing a minimum of 52 inches of mail. OBMC Presort machinable 
parcels must not be prepared as parcels placed directly on pallets. 
Overflow containers (pallets, pallet boxes on pallets, or sacks) are 
not permitted.
    Nonmachinable parcels at OBMC Presort rates must: (1) be sorted to 
BMCs and ASFs using new DMM labeling list L605 and, (2) be placed 
directly on pallets (no pallet boxes on pallets are allowed), each 
labeled to a BMC or ASF and each pallet containing at least 42 inches 
of mail. Overflow containers (pallets, pallet boxes on pallets, or 
sacks) are not permitted.
    Pallets and pallet boxes also must meet the provisions of M041. The 
minimum height of mail in a pallet box on a pallet (machinable parcels) 
or of mail placed directly on a pallet (nonmachinable parcels) is 
measured from the top of the pallet to the top of the lowest mailpiece 
(i.e., excludes the height of the pallet).

[[Page 37954]]

g. Mail Preparation--BMC Presort Discount
    To qualify for the BMC Presort discount, a piece must meet the same 
rules for sorting machinable parcels to BMCs and nonmachinable parcels 
to BMCs and ASFs as required for the OBMC Presort discount above. The 
difference is that BMC Presort mail may be entered at any postal 
facility (other than a BMC in DMM L601) that accepts bulk mailings.
h. Mail Preparation--DSCF Rate
    To qualify for the DSCF rate, a piece must be part of a mailing of 
at least 50 Parcel Post rate pieces and must be presorted to 5-digit 
ZIP Code destinations. Pieces eligible for the DSCF rate must be 
entered at an SCF listed in DMM L005 and must be for delivery within 
the service area of the entry SCF. For palletized mail only, certain 5-
digit ZIP Codes listed in DMM Exhibit E652.5.0 must be entered at the 
BMC facility serving the SCF.
    To qualify for the DSCF rates the pieces must be presorted and 
labeled to 5-digit sacks or 5-digit pallets (including pallet boxes on 
pallets). Machinable and nonmachinable parcels may be combined in the 
same sack or on the same pallet (or same pallet box on a pallet) to 
meet the minimum sortation requirements. If sacked, each 5-digit sack 
must contain a minimum of 7 pieces, except that one overflow sack per 
5-digit ZIP Code that contains fewer than 7 pieces is allowed. If 
palletized, each 5-digit pallet (including pallet boxes on pallets) in 
the mailing must meet one of the following basic minimum preparation 
requirements: (1) contain at least 50 pieces and 250 pounds of mail, or 
(2) contain at least 36 inches of mail (height of mail excluding 
pallet). Overflow from a full 5-digit pallet may be placed in 5-digit 
sacks or may be palletized. If the overflow is placed in a 5-digit sack 
it will be eligible for the DSCF rates. If the overflow is placed on a 
5-digit pallet it is subject to the DBMC rates. Pallets prepared under 
the piece and pound minimum and pallets prepared under the minimum 
height requirement may both be combined in a single mailing. Sacked 
mail and mail palletized according to either of the minimum quantity 
options listed above also may be included in the same mailing, provided 
that at the time of verification the mailer separates sacks that are 
overflow from the palletized portion of the mailing from sacks that 
were prepared under the provisions for sacking mail.
    If mailers can provide certain documentation, they also may prepare 
a mailing exclusively under the following alternate pallet preparation 
option. The minimum number of pieces on a 5-digit pallet (including a 
pallet box on a pallet) may be 35 pieces and 200 pounds provided that 
within the mailing the average number of DSCF pieces per 5-digit pallet 
is at least 50. To substantiate that no pallet contains less than 35 
pieces and 200 pounds and that the average number of DSCF pieces per 5-
digit pallet in the mailing is at least 50 pieces, mailers must submit 
documentation that lists each pallet in sequential order by pallet 
identification number. For each 5-digit pallet containing mail claimed 
at the DSCF rates the documentation must show: the unique pallet 
identification number, the 5-digit ZIP Code of the pallet, the total 
weight of pieces on the pallet, the total number of pieces on the 
pallet, and the cumulative total of pieces (i.e., the number of pieces 
on that pallet plus the sum of the pieces on all 5-digit pallets 
qualifying for the DSCF rates listed before it). Under this alternate 
pallet option, overflow from a full 5-digit pallet may be placed in 5-
digit sacks or may be palletized. If the overflow is placed in a 5-
digit sack, it will be eligible for the DSCF rates. If the overflow is 
placed on a 5-digit pallet, it is subject to the DBMC rates. Mailers 
using this 50-piece average-per-pallet alternative must exclude pieces 
that are prepared as overflow under any of the foregoing methods 
(sacked or palletized) from the computation (documentation) that the 
50-piece per pallet average is met.
    For any palletization option, mailers may place parcels directly on 
pallets or in pallet boxes on pallets. If pallet boxes are used they 
must not exceed 60 inches in height and must otherwise meet the 
provisions for pallet boxes in DMM M041. All pallets must meet the 
provisions of DMM M041.
    Under any palletization option, the following additional 
requirements or restrictions also apply. Currently, many BMCs transport 
mail for certain 5-digit ZIP Code areas directly to the 5-digit 
associate post office. A list of these 5-digit areas is found in DMM 
Exhibit E652.5.0. Five-digit pallets prepared for the DSCF rate for the 
5-digit ZIP Codes listed in this exhibit must be entered at the BMC, 
not at the SCF, to qualify for the DSCF rate. This will avoid 
additional handling and transportation of this mail at the affected 
SCFs. However, sacked mail for the 5-digit ZIP Codes listed in Exhibit 
E652.5.0 must always be entered at the SCF (not at the BMC). There is 
one exception to this rule provided for in DMM E652.1.3. This rule 
allows a mailer to request from the Area Manager, Operations Support, 
an exception to the requirement to drop palletized mail for the ZIP 
Codes in Exhibit E652.5 at the BMC. Such exceptions must be requested 
at least 15 days in advance and may only be granted for a limited time.
    In addition, there are certain associate post offices that cannot 
handle pallets. A list of these facilities is found in the Drop 
Shipment Product currently available from the National Customer Support 
Center (NCSC) in Memphis, TN (1-800-238-3150). For these 5-digit ZIP 
Codes, the DSCF rate will be available only for mail that can be 
prepared in 5-digit sacks as described above (i.e., the DSCF rate will 
not be available for palletized mail for 5-digit delivery units that 
cannot handle pallets).
    In instances where the Drop Shipment Product shows that mail for a 
single 5-digit ZIP Code area is delivered from more than one facility, 
the facility listed in the Drop Shipment Product that delivers mail to 
the majority of city carrier routes will be considered the delivery 
unit for parcel post. Two exhibits, Exhibits E652.6.0 and E652.7.0 that 
contain exceptions to the ``majority of city carriers'' rule, are also 
added to the DMM. If a 5-digit ZIP Code is listed in DMM Exhibit 
E652.6.0 or E652.7.0, the facility listed in one of those exhibits must 
be used to determine the name of the delivery unit. The name of the 
delivery unit must then be looked up in the Drop Shipment Product to 
determine if mail for it, and therefore mail for the 5-digit ZIP Code, 
can be prepared on pallets to qualify for the DSCF rate. At some point 
in the future the information in these two exhibits will be 
incorporated in the Drop Shipment Product.
    Nonmachinable outside (NMO) parcels by definition cannot be 
prepared in sacks because they will not fit in a sack. Therefore, NMOs 
must be prepared directly on pallets or in pallet boxes on pallets as 
described above to qualify for the DSCF rates. If overflow pallets are 
prepared, the pieces on such pallets are subject to the DBMC rates. The 
DSCF rate is not available for NMOs at those facilities listed in the 
Drop Shipment Product, and Exhibits E652.6.0 and E652.7.0, as unable to 
handle palletized mail.
    The Postal Service will unload palletized loads for DSCF rate mail. 
Mailers must unload sacked and bedloaded mailings. A provision has been 
added to allow mailers to prepare 5-digit sacks qualifying for the DSCF 
rate on SCF pallets. Such SCF pallets have no minimum pallet weight and 
may be prepared without having to first prepare all possible 5-digit 
pallets. A

[[Page 37955]]

special pallet label is prescribed for this mail in M045.12.
    Except for local mailings, appointments for dropping any Standard 
Mail (B) at an SCF must be scheduled through the appropriate district 
control center (see DMM E652).
i. Mail Preparation--DDU Rate
    To qualify for the DDU rate, a piece must be part of a mailing of 
at least 50 Parcel Post rate pieces. Pieces eligible for the DDU rate 
must be entered at the postal facility where the carrier who delivers 
the parcel is located. A list of these facilities and their telephone 
numbers are in the Drop Shipment Product currently available from the 
National Customer Support Center (NCSC) in Memphis, TN, 1-800-238-3150. 
In instances where the Drop Shipment Product shows that a 5-digit area 
is served by more than one facility, the facility that delivers mail to 
the majority of city carrier routes should be used for purposes of 
determining where to enter a destination delivery unit mailing. 
Exceptions to that general rule are those ZIP Codes listed in DMM 
Exhibit E652.6.0 and in Exhibit E652.7.0. If a ZIP Code appears in DMM 
Exhibit E652.6.0 or Exhibit E652.7.0, the mail must be entered at the 
delivery unit listed in the exhibit for that ZIP Code.
    There are no specific sortation requirements for the DDU rates 
other than the requirement that mail must be separated by 5-digit ZIP 
Code when unloaded at a DDU facility. Mailers may choose to sack or 
palletize DDU rate pieces. If so, there are no minimum sack or pallet 
requirements but the sack or pallet must be labeled as a 5-digit sack 
or pallet. Mailers may present mail to the DDU prepared in pallet boxes 
on pallets provided the pallet boxes do not exceed 60 inches in height 
and otherwise meet the provisions of M041. The Drop Shipment Product 
and DMM Exhibits E652.6.0 and E652.7.0 may be used to determine which 
postal facilities can handle pallets. If the facility cannot handle a 
pallet, and mail is transported to the facility on pallets, the mailer 
must unload the mail from pallets into a container as specified by the 
delivery unit.
    The mailer will be responsible for unloading all DDU loads (even if 
palletized). If palletized and the pallets are stacked, the mailer will 
be responsible for unloading, unstacking, and removing the strapping 
material from the pallets. Appointments for entry must be made by 
contacting the DDU at least one day in advance. Mailers desiring 
electronic confirmation of DDU mail entry also must schedule the 
appointment through the district control center. Standing appointments 
may be made if shipment frequency is weekly or more frequently. The 
grace period for late arrivals will be 20 minutes.
j. Destination Entry Mail Preparation--Plant-Verified Drop Shipment 
(PVDS)
    Pieces must be part of a mailing of at least 50 Parcel Post rate 
pieces to qualify for DDU, DSCF, and DBMC rates and to qualify for OBMC 
Presort, BMC Presort, and barcoded discounts. When Parcel Post rate 
pieces are submitted under PVDS procedures, mailers may use the total 
of all line items for all destinations on a PVDS register or PVDS 
postage statement to meet the minimum 50-piece volume requirement. This 
means a mailer may enter fewer than 50 pieces at an individual 
destination, provided there is a total of at least 50 Parcel Post rate 
pieces for all of the entry points for that single mailing job listed 
on the PVDS register or PVDS postage statement.
k. Bulk Parcel Post
    Bulk Parcel Post is a ``shell'' classification of Standard Mail (B) 
for which there are no separate rates prescribed. Current DMM E620.2.4e 
states that ``the bulk Parcel Post rate is the rate applicable to each 
piece in a bulk Parcel Post rate mailing at the single-piece rate or 
DBMC rate for that zone for an item equal to the average weight per 
piece for all parcels in the mailing to that zone, rounded up to the 
next whole pound.'' This DMM section therefore establishes a method of 
computing postage at Parcel Post rates. For mailings of identical 
weight pieces, this averaging method is irrelevant, because the average 
weight of all the pieces to a zone is always the weight of a single 
piece. For mailings of nonidentical weight pieces, DMM E620.2.2b states 
that this method of postage payment may be used only if authorized by 
the rates and classification service center (RCSC) serving the post 
office of mailing. The Postal Service is removing sections E620.2.2 and 
E620.2.4e from the DMM. Postal Service Headquarters is not aware of any 
mailer that is currently authorized to use this method of postage 
payment. If in fact there are mailers using this method, they may 
request that their RCSC issue an authorization for continuation of 
their postage payment procedure as an alternate mailing system under 
DMM P730. The Postal Service is implementing various new rates and 
discounts for Parcel Post that could be considered ``bulk rates'' 
because they require a minimum volume of 50 pieces per mailing. 
Therefore, removing references to ``Bulk Parcel Post'' rates in DMM 
E620 will reduce confusion in the eligibility section for Parcel Post 
rates in new DMM E630. As indicated above, the Postal Service also will 
be removing the requirement to mark pieces with a ``Bulk Parcel Post'' 
rate marking. New DMM E630.6.0 is reserved for any future rates and 
requirements for the Bulk Parcel Post classification.

7. Special Services

a. Address Correction
    No changes will be made to address correction service fees. They 
will remain at $0.50 for manual corrections and $0.20 for automated 
(ACS) corrections, per notice issued.
b. Address Changes for Election Boards
    No changes will be made to the fee. It will remain $0.17. See DMM 
R900.10.3.
c. Business Reply Mail (BRM)
    (1) Fees and Per-Piece Charges. The annual permit fee will increase 
from $85.00 to $100.00, and the annual accounting fee will increase 
from $205.00 to $300.00. For regular BRM, mailers will pay the 
applicable First-Class Mail rates plus a per-piece charge. The per-
piece charge for regular BRM with an advance deposit account will 
decrease from $0.10 to $0.08. The per-piece charge for regular BRM 
without an advance deposit account will decrease from $0.44 to $0.30.
    (2) Qualified Business Reply Mail. A new classification category 
and rate structure will be added for qualified business reply mail 
(QBRM) that must be letter-size, automation-compatible, and barcoded. 
As a result, the BRMAS fee category will be eliminated. The First-Class 
rate structure for QBRM includes a lower single-piece first-ounce rate 
of postage of $0.30 for letters and $0.18 for cards. The fee structure 
requires an annual BRM permit fee, an annual BRM accounting fee, and 
for each piece returned a $0.05 per-piece BRM charge.
    (3) Mailpiece Design and Barcoding Requirements. Mailpiece design 
and barcoding requirements will be revised for both regular BRM and 
QBRM. Regular BRM pieces that bear a barcode and QBRM pieces that bear 
a barcode will be required to meet the automation letter mailpiece 
design requirements in DMM C810 (except C810.7.1) and the barcoding 
standards in C840 so that there are uniform requirements for all mail 
that is processed on barcode sorters.
    For barcoded and nonbarcoded BRM, references to mailpiece design

[[Page 37956]]

requirements in DMM C810 and C830 will replace current BRM standards 
relative to reflectance requirements, paper weight, tabs and self-
mailers. This will add basis weight, tabbing, and other requirements 
for all self-mailers. It is likely that self-mailers will be processed 
on automated equipment. Meeting these requirements will ensure their 
ability to be processed without damage. QBRM and other barcoded 
mailpieces must meet all the mailpiece design requirements in C810 
except the requirement in C810.7.1. The basis weight requirement for 
envelopes in C810.7.1 will not apply to BRM. BRM envelopes, including 
QBRM, must continue to meet the current minimum paper basis weight of 
20 pounds (measured using 500 sheets of 17- by 22-inch paper). In 
addition, the standard in current S922.6.4 that envelope material must 
not have a phosphorescence exceeding 4.0 phosphor meter units is 
retained and corrected to state that envelope material must not have a 
red fluorescence exceeding 4.0 phosphor meter units. Mailers will have 
until January 10, 2001, to comply with the requirement in DMM C810.2.1c 
that Qualified Business Reply Mail pieces and other BRM pieces that 
bear a barcode and measure more than 4\1/4\ inches by 6 inches meet a 
minimum thickness requirement of .009 inch.
    Mailers currently have the option of preparing pieces with lower 
right barcodes according to the standards in C840. They also currently 
have the option of preparing the pieces so that the left boundary of 
the barcode clear zone and of a lower right barcode window is \1/4\ 
inch closer to the right edge of the mailpiece than required under 
C840, and to place the leftmost bar of a lower right barcode \1/4\ inch 
closer to the right edge of the mailpiece than required under C840. The 
revised standards will no longer permit mailers to use the option that 
does not meet the DMM C840 requirements. However, mailers will be given 
until January 10, 2001, to use existing stocks of such prebarcoded BRM 
envelopes and cards that: (1) Have a barcode clear zone with a left 
boundary that is 4\1/2\ inches from the right edge of the piece (not 
4\3/4\ inches as required in C840); (2) have a lower right barcode for 
which the leftmost bar is located between 3\1/4\ and 4 inches from the 
right edge of the piece (not between 3\1/2\ and 4\1/4\ inches as 
required under C840); (3) have a lower right barcode window, that has a 
left boundary measuring 4\1/2\ inches from the right edge of the piece 
(not 4\3/4\ inches as required under C840).
    The revised standards also will allow a company logo to appear 
beneath the delivery address line of a prebarcoded BRM or QBRM 
mailpiece, provided the logo is placed no lower than \5/8\ inch from 
the bottom edge of the mailpiece and does not interfere with the 
barcode clear zone.
d. Carrier Sequencing of Address Cards
    The fee will increase from $0.17 to $0.20. See DMM R900.1.0.
e. Certificate of Mailing
    The fees will increase. See DMM R900.4.0.
f. Certified Mail
    The fee will increase from $1.35 to $1.40. See DMM R900.5.0.
g. Collect on Delivery (COD)
    COD fees will increase. See DMM R900.6.0. The standards in DMM S921 
will also be revised to remove references to the availability of COD 
with single-piece Standard Mail (A).
h. Correction of Mailing Lists
    The per-correction fee will be increased from $0.17 to $0.20 and 
the minimum per-list fee is increased from $5.50 to $7.00. See DMM 
R900.10.1.
i. Delivery Confirmation
    A new delivery confirmation service will be available for Priority 
Mail and Standard Mail (B) in early 1999. This service, when available, 
will provide the mailer with information about the date of delivery or 
attempted delivery. This service will be available in two forms: (1) an 
electronic option for mailers who apply identifying barcodes to each 
piece, provide an electronic manifest, and retrieve confirmation 
information electronically; and (2) a retail (manual) option for which 
delivery information will be available through a USPS Internet address 
or a toll-free number. Signature (electronic return receipt) service 
also will be available in early 1999.
j. Express Mail Insurance
    The fees for merchandise insured for $500.01 to $5,000.00 will 
increase. See DMM R900.8.0.
k. Insured Mail
    The fees for insurance service will increase. See DMM R900.9.0. The 
DMM provisions in S913 will be revised to delete the applicability of 
insurance to single-piece Standard Mail (A). Since single-piece 
Standard Mail (A) will be eliminated, mail that was formerly mailed at 
those rates will be subject to single-piece First-Class Mail or 
Priority Mail rates as applicable for the weight of the mailpiece. 
Because First-Class Mail and Priority Mail may be insured, mailpieces 
formerly mailed at single-piece Standard Mail (A) rates will retain 
their eligibility for insurance when mailed at First-Class Mail or 
Priority Mail rates.
    In addition, a bulk insurance service discount of $0.40 per piece 
is introduced. To be eligible for the bulk insurance service discount, 
mailers must (1) enter mailings of insured articles under an approved 
manifest mailing system agreement, (2) mail a minimum of 10,000 insured 
articles annually (a total of all insured articles mailed at multiple 
locations), (3) provide a hard copy of Form 3877, Firm Mailing Book for 
Accountable Mail, or facsimile and (4) provide a copy of Form 3877 on a 
diskette or other electronic medium. Mailers must submit an application 
for bulk insurance to their local postmaster or designee. The local 
postmaster or designee will approve or deny the application. Authorized 
mailers will be provided instructions for filing claims under the bulk 
insurance service by the local postmaster or designee. When systems 
that electronically capture information on accountable mail are 
completed and programming changes that will tie the St. Louis ASC into 
these systems are completed, mailers will be required to file claims 
electronically using a new (soft) electronic format for the Form 3877. 
When or before these changes and systems are completed, bulk insurance 
mailers will be provided with instructions for a new format for the 
electronic Form 3877 and with instructions for electronically filing 
claims.
l. Merchandise Return Service
    The annual permit fee will increase from $85.00 to $100.00. The 
charge per returned mailpiece remains at $0.30. Revisions are made to 
the postage that is applicable to pieces returned that weigh less than 
16 ounces and to the marking requirements that specify the return rate 
of postage. These changes will be necessary because of the elimination 
of single-piece Standard Mail (A) rates. Matter bearing a merchandise 
return label without a preprinted rate marking will be returned at: (1) 
the Parcel Post rate if it weighs 16 ounces or more, (2) the Priority 
Mail rates if it weighs over 13 ounces but less than 16 ounces, and (3) 
the First-Class Mail rates if it weighs 13 ounces or less. If the 
permit holder desires matter to be returned the Special Standard, or 
Library Mail rates, the permit holder will be required to preprint the 
appropriate rate marking on the label. If the permit holder desires 
matter

[[Page 37957]]

weighing 13 ounces or less or matter weighing 16 ounces or more to be 
mailed at the Priority Mail rates, the mailer will be required to 
preprint the Priority Mail marking on the merchandise return label. It 
is recommended but not required that matter to be returned at the 
First-Class Mail, Priority Mail, or Parcel Post rates bear the 
applicable preprinted marking ``First-Class'' or ``First-Class Mail,'' 
``Priority Mail,'' or ``Parcel Post'' (or ``PP'').
m. Money Orders
    The fee for domestic money orders will be reduced from $0.85 to 
$0.80. The fee for a postal military money order will remain at $0.30 
and the inquiry fee will remain at $2.75.
n. On-Site Meter Settings
    There will be increases to two of the on-site meter setting fees. 
The fee for an additional meter setting will increase from $3.25 to 
$4.00, and the fee for checking a meter in and out of service will 
increase from $7.50 to $8.50. No increases will be made to the 
scheduled appointment setting fee for the first meter ($27.00) or to 
the unscheduled or emergency setting fee for the first meter ($31.00).
o. Parcel Airlift
    There will be no changes to parcel airlift fees ($0.40 for up to 
two pounds, $0.75 for over two up to three pounds, $1.15 for over three 
up to four pounds, and $1.55 for over four pounds).
p. Permit Imprint
    The application fee for permit imprints will increase from $85.00 
to $100.00.
q. Post Office Boxes, Caller Service, and Reserve Call Numbers
    Post office box fees (except the $0 fee for all box sizes in Group 
E) will increase. Fees for caller service and reserve call numbers also 
will increase (see R900.3.0 and DMM R900.16.0).
r. Registered Mail
    The maximum value level for registered mail without postal 
insurance will be decreased from $100.00 to $0.00. All registered mail 
with a value of $0.01 or more will be automatically provided with 
insurance (up to a maximum indemnity of $25,000 per piece). Insurance 
coverage is included in the applicable registered mail fee. Only mail 
of no value may be mailed as uninsured registered mail. In addition, 
registered mail fees will increase (see DMM R900.18.0).
s. Restricted Delivery
    The restricted delivery fee will not change (it remains $2.75).
t. Return Receipt
    Fees for return receipt will increase from $1.10 to $1.25 when 
requested at time of delivery and from $6.60 to $7.00 when requested 
after mailing.
u. Return Receipt for Merchandise
    The fee for return receipt for merchandise will increase from $1.20 
to $1.40, and the fee for a delivery record will increase from $6.60 to 
$7.00. DMM S917 will be revised to delete the availability of this 
service with single-piece Standard Mail (A), because single-piece 
Standard Mail (A) will be eliminated.
v. Special Handling
    There will be no change to the fees for special handling ($5.40 for 
matter weighing not more than 10 pounds and $7.50 for matter weighing 
more than 10 pounds). In addition, DMM S930.1 will be revised to 
conform to the Domestic Mail Classification Schedule (DMCS) by making 
it clear that special handling may be used with First-Class Mail and 
Priority Mail.
w. Stamped Cards
    A $0.01 fee per stamped card and a $0.02 fee per double stamped 
card will be added to cover manufacturing and printing costs. A fee of 
$0.40 will be added to the price of a sheet of 40 stamped cards. This 
is consistent with the existing fee structure for stamped envelopes, 
where customers are charged postage plus a small fee for the envelope 
itself.
x. Stamped Envelopes
    The fees for some stamped envelopes will increase and others will 
decrease. In addition, the fee structure will be simplified: except for 
hologram stamped envelopes, all stamped envelopes will be grouped 
together by size and whether they are plain or printed.
y. ZIP Coding of Mailing Lists
    Fees will increase from $60.00 to $70.00 per 1,000 addresses or 
fraction thereof.

C. Summary of Comments From the March 16, 1998, Proposed Rule

    The Postal Service received 32 pieces of correspondence offering 
comments on the March 16, 1998, proposed rule. Respondents included 
five major mailer associations; 24 publishers, printers, and mailers; 
and three individuals.
    The specific points raised in the comments are presented below, 
organized by general comments and then by class of mail and special 
service.

1. General Comments

    Three comments were received concerning the implementation date of 
the new rates, fees, and classifications. Each commenter indicated that 
the implementation date should allow time for mailers to make software 
changes. Suggested dates ranged from 90 days to 8 months after the 
Board of Governors' decision. The implementation date for Docket No. 
R97-1 is determined by the Board of Governors of the Postal Service and 
is outside the scope of this rulemaking process. Postal management did 
however, consider these comments when it provided advice to the Board 
of Governors concerning the effective dates.
    Various comments also were received that requested changes to rates 
and fees. One commenter requested that the revised rates not apply to 
his company for two to five years. These comments are beyond the scope 
of this rulemaking. The rates, rate structure, and basic standards for 
rates in Docket No. R97-1 were subject to litigation before the Postal 
Rate Commission and cannot be revised unilaterally by the Postal 
Service in a rulemaking process.
    Three commenters requested that a single item not be subject to 
both a hazardous medical materials and an other hazardous materials 
surcharge. As the PRC did not recommend the proposed hazardous 
materials surcharges, these comments will not be addressed.
    One commenter indicated that the Postal Service should re-solicit 
comments for any items that were affected by the PRC decision. Because 
the Postal Service cannot revise rates and DMCS language that is 
recommended by the PRC and approved by the Governors of the Postal 
Service, it does not believe that soliciting comments on such items 
would have any value.

2. Priority Mail

    One commenter requested clarification as to whether Priority Mail 
must always bear the ``Priority Mail'' marking. This commenter further 
asked whether the ``Priority Mail'' marking will delay the mail when 
deposited in an overnight First-Class Mail area and, if so, could such 
mail pieces be marked ``First-Class'' instead of ``Priority Mail.'' 
Priority Mail must always bear the marking ``Priority Mail'' or 
``Priority.'' This marking is used to ensure that mail is placed in and 
processed through the Priority Mail network and to collect cost

[[Page 37958]]

and revenue data through the Postal Service's statistical sampling 
systems. Deployment of the Priority Mail Processing Center (PMPC) 
network has affected overnight service standards for some ZIP Codes. 
While the vast majority of service standard changes have resulted in 
improved service, there are, as the commenter suggests, a small number 
of 5-digit ZIP Code areas that may experience two-day service instead 
of overnight. However, the Postal Service does not plan to waive the 
marking requirement for pieces mailed in such 5-digit ZIP Code areas.

3. First-Class Mail

    Two commenters requested that the Prepaid Reply Mail proposal 
should not be implemented because of administrative complexity and 
costs to the mailer. For other reasons, the Governors did not approve 
Prepaid Reply Mail.
    One commenter supported the provision allowing ``Presorted'' to be 
abbreviated ``PRSRT'' when used in the ``Presorted First-Class'' 
marking. Another commenter was concerned that it appeared the revised 
DMM M012.2.1a required single-piece First-Class Mail to bear a ``First-
Class'' marking. The Postal Service has revised DMM M012 to make it 
clear that single-piece First-Class Mail is not required to bear a rate 
marking.

4. Periodicals

    Two commenters suggested that for clarity, proposed DMM E230.3.0b 
and E230.4.0b concerning eligibility for 5-digit and 3-digit presort 
rates be revised to indicate that 5-digit and 3-digit packages of 6 or 
more pieces may be palletized under M045 to obtain the 5-digit and 3-
digit presort rates. The Postal Service has adopted this suggestion.
    Two commenters suggested that the forwarding rules table in DMM 
F010.5.2g should be clarified so it does not appear that use of ACS 
will always result in the return of the mailpiece. One of these 
commenters suggested that it would be clearer if the entire chart in 
this DMM section had been reproduced so that it was clear that footnote 
1 stating ``Valid for all pieces, including Address Change Service 
(ACS) participating pieces'' also applied to pieces that bear no 
endorsement. When Periodicals pieces bear no endorsement, after 60 days 
or, if the piece is undeliverable, a separate address correction or 
reason for nondelivery is provided, the address correction fee is 
charged (the automated fee if ACS service is used), and the piece is 
disposed of by the Postal Service. The entire chart in DMM F010.5.2g is 
reproduced in this final rule to make it clear that this policy has not 
changed.
    One commenter indicated that it appeared the Postal Service intends 
to revise current rules in DMM F010.6.1 to require that Periodicals 
mail with a nonincidental First-Class attachment be returned to the 
mailer. The Postal Service revisions to DMM F010.6.1 in both the 
proposed and this final rule revise only the rate of postage at which 
such pieces are returned from the single-piece Standard Mail (A) rate 
to the First-Class or Priority Mail rate as applicable for the weight 
of the piece. Postal Service policy for some years has provided that 
Periodicals pieces with nonincidental First-Class Mail attachments be 
returned. However, Periodicals pieces with incidental First-Class Mail 
attachments, as defined in DMM M070.5.0, are treated as dead mail 
unless endorsed ``Address Service Requested.'' To avoid confusion, in 
Part D of this final rule, the Postal Service has published DMM 
F010.6.1 in its entirety to show the treatment of incidental First-
Class attachments as well as treatment of nonincidental First-Class 
attachments.
    One commenter indicated that the current interpretation of 
``mailing'' for Periodicals allows mailers to treat and report mail for 
different rate categories, including automation mail, carrier route 
mail, and other non-automation mail, as one ``mailing.'' This commenter 
asked if the proposed definition of a mailing in DMM M011.1.4 would 
require that a separate mailing statement be prepared for each rate 
category of Periodicals mail. The DMM currently does not allow 
preparation of automation, carrier route, and other non-automation mail 
in a single ``mailing.'' Separate presort and eligibility requirements 
are prescribed for each of these rate categories. However, each of 
these rate categories are permitted to be reported on a single postage 
statement for a single publication and edition. To clarify that the 
current practice continues to be permitted, a new section DMM M011.1.4d 
has been added concerning ``mailings'' of Periodicals.

5. Standard Mail (A)

    Five commenters indicated their support for allowing pieces in an 
Enhanced Carrier Route rate mailing and/or in an automation rate 
mailing that have each separately met a 200-piece or 50-pound minimum 
quantity requirement to be counted toward the minimum quantity 
requirement for a Presorted Standard (\3/5\ and basic rate) mailing, 
provided that (1) the Enhanced Carrier Route rate mailing and/or the 
automation mailing and the Presorted Standard mailing are part of the 
same mailing job, and (2) the mailings are all reported on the same 
postage statement.
    One commenter asked what DMM section E612.4.6 means. DMM E612.4.6 
contains provisions that allow Standard Mail (A) matter weighing less 
than 16 ounces to pay Standard Mail (B) rates if those rates are lower 
than Standard Mail (A) rates and the matter and the mailing could 
qualify for the Standard Mail (B) rate except for weight. For example, 
suppose a mailer had flat-size printed matter pieces that met all of 
the qualifications for Bound Printed Matter except that the pieces each 
weighed 4 ounces and therefore did not meet the requirement of weighing 
at least one pound. In such an instance the mailer could presort the 
pieces as Standard Mail (A) flats and claim basic presorted Bound 
Printed Matter rates if those rates were less than the applicable 
Standard Mail (A) rates. The mailer could presort the pieces according 
to the Presorted Standard Mail (A) requirements to 5-digit, 3-digit, 
ADC, and mixed ADC, which are similar to the presort requirements for 
presorted Bound Printed Matter, and claim the local zone Bound Printed 
Matter rates provided the mailer marked the pieces ``Presorted'' or 
``Presorted Standard'' and ``Bound Printed Matter'' and submitted 
documentation to substantiate that the pieces qualified for the local 
zone rate.
    One commenter requested that the Postal Service not apply the 
residual shape surcharge to Enhanced Carrier Route rate merchandise 
samples prepared with detached labels. The Postal Rate Commission 
recommended and the Governors of the Postal Service approved a residual 
shape surcharge for Enhanced Carrier Route mail. Since these provisions 
are in the Domestic Mail Classification Schedule to take effect January 
10, 1999, the Postal Service cannot unilaterally change these 
provisions. Therefore, merchandise samples at the Enhanced Carrier 
Route rates will be subject to the residual shape surcharge.
    One commenter requested that the Postal Service revise the rule 
placed into effect under Classification Reform that allows mail whose 
size meets both the letter-size requirements and the automation flats 
requirements to be prepared as flats on pallets if a portion of the 
mailing qualifies for automation flats and if palletized mail at the 
Presorted Standard rates is limited to 10% of the total palletized 
mail. This rule further requires that mail unable to be palletized 
either due to density or because it exceeded the 10% limit be prepared 
as a separate letter-size mailing. This issue is not related to the

[[Page 37959]]

implementation rules for the Docket No. R97-1 rate case and will not be 
revised as a part of this rulemaking process. However, this matter has 
been brought to the attention of the Presort Optimization working group 
of the Mailers Technical Advisory Committee.
    One commenter indicated that on occasion he will have a mailing 
that is set up as Standard Mail (A) (i.e., bears Standard Mail (A) rate 
markings and pre-printed endorsements for Change Service Requested 
using ACS) and subsequently discover that a particular mailing list has 
fewer than 200 names. Such a mailing would not qualify for Standard 
Mail (A) rates, and would be subject to single-piece First-Class Mail 
rates, unless it could meet the revised volume requirements under DMM 
E620.1.2. This commenter indicated that he could cover the bulk rate 
indicias with First-Class stamps, but that the ACS participant code on 
the mailpieces would be that assigned for Standard Mail (A), not First-
Class. This commenter accordingly asked if changes could be made to the 
Centralized Forwarding System (CFS) to handle this, and if not, asked 
how could it be mailed. The CFS system cannot be modified to handle 
such instances. It would be unlikely that a postal employee would be 
able to tell that such a mailpiece was modified from a Standard Mail 
(A) mailpiece if a stamp is covering the bulk rate indicia. 
Furthermore, if mailers added ``single-piece'' or ``single-piece First-
Class'' markings to such mailpieces it would be difficult and time 
consuming to have carriers search all undeliverable mailpieces for such 
markings in order to forward them to CFS sites, and then for CFS 
employees to notice the markings and respond accordingly. Two options 
have been added to the DMM for payment at First-Class or Priority Mail 
rates for such pieces and for pieces that for other reasons are subject 
to the appropriate First-Class Mail or Priority Mail rates. Mailers who 
desire to receive First-Class Mail or Priority Mail service on 
mailpieces subject to those rates must re-envelope or otherwise prepare 
the mailpieces so that they bear only the proper First-Class Mail or 
Priority Mail rate markings, ancillary service endorsements, Address 
Change Service (ACS) codes, etc. Metered pieces weighing over 13 ounces 
and less than 16 ounces must always be prepared under this method. 
Except for metered pieces weighing over 13 ounces and less than 16 
ounces, mailers who do not desire to receive First-Class Mail or 
Priority Mail service on such pieces may submit them ``as is'' (i.e., 
bearing the Standard Mail (A) markings and endorsements). No additional 
markings or postage are to be added to these pieces. First-Class Mail 
or Priority Mail postage must be paid for these pieces using the 
appropriate First-Class or Priority Mail postage statement. Except for 
metered pieces weighing over 13 ounces and less than 16 ounces, mail 
bearing metered or precanceled stamp postage must pay the difference 
between the postage affixed and the First-Class Mail or Priority Mail 
rates by means of an advance deposit account or by affixing a meter 
strip for the appropriate amount to the First-Class postage statement. 
If the pieces weigh 13 ounces or less, mailers must use special line 
items on the new First-Class postage statements under the heading 
``From Standard Mail (A)'' to record the pieces mailed. This option may 
be used for fewer than 200 pieces of permit imprint mail only if the 
pieces were part of a larger mailing job and are submitted for 
acceptance along with the mail and a Standard Mail (A) postage 
statement for the other pieces in the same mailing job.
    One commenter was concerned that the revised definition of a 
mailing in DMM M011.1.4d(6) seemed to preclude his company's current 
practice of co-mailing Nonprofit and Regular rate mail. This section 
has been renumbered as M011.1.4e(6) in this final rule. This section 
begins with the phrase ``Except as provided by standard,'' which means 
that other rules in the DMM may permit practices that entail combining 
or copalletizing such pieces. For clarity the following sentence was 
added to this section in the final rule. ``See M041.6.0, M045.5.0, 
M045.7.0, and M200.6.0 for copalletized, combined, or mixed-rate level 
mailings.'' Accordingly, if a mailer is currently authorized to combine 
or copalletize Nonprofit and Regular rate mail, he or she may continue 
to do so after the new rates and mailing definitions are effective.
    Two commenters supported the change in the Standard Mail (A) rate 
marking for Regular rate mailings from ``Bulk Rate'' to ``Presorted 
Standard.'' Two commenters indicated that the ``Presorted Standard'' 
marking should be optional. These two commenters indicated that they 
would prefer to use the new marking on their advertising mail but do 
not wish to use it on fulfillment parcels because it will be costly to 
revise the current cartons. One of these commenters indicated that if 
the marking is not made optional, there should be a transition period 
of at least two years for mailers to convert to the new marking. For 
simplicity in its statistical sampling systems, the Postal Service will 
not allow both markings to be used indefinitely. However, mailers will 
be given two years to convert their regular rate Presorted, regular 
rate automation, and regular rate Enhanced Carrier Route mailings to 
the new ``Presorted Standard'' marking or its authorized abbreviation 
``PRSRT STD.'' Until January 10, 2001, either the ``Bulk Rate'' or the 
``Presorted Standard'' marking or authorized abbreviation will be 
accepted.
    Five commenters requested that the proposed ``RSS'' marking for 
pieces subject to the residual shape surcharge be eliminated. Four of 
these commenters indicated the marking uses too much space on a 
mailpiece, one indicated that it detracts visually from the mailpiece, 
two did not see the purpose of it, and one indicated it would require 
additional labor for the shipper. One commenter was a mailer 
association, who indicated it would be impossible for some of its 
mailers to predict which pieces would need the marking. One such mailer 
has pieces that could be considered either flat-size or a machinable 
parcel and decides which way to prepare the mail based on the density 
of orders received. Only machinable parcel mailings would need to bear 
the marking. Another such mailer indicated they cannot predict the 
final size of the product shipped ahead of time. For example, multiple 
pieces ordered could be sent as one or more pieces each having a 
different shape. Based on the comments received, the Postal Service has 
determined to not require the use of an ``RSS'' marking.

6. Standard Mail (B)

a. General
    There were 10 commenters among the 32 submitting comments to the 
Postal Service whose statements concerned Standard Mail B topics. Of 
the 10, seven were private firms, including three parcel consolidators, 
and three were parcel shipper associations. Their comments concentrated 
mainly on the following subject areas: barcoded discount, destination 
mailings at the sectional center and delivery unit levels; new bulk 
mail center presort (BMC Presort) and origin bulk mail center presort 
(OBMC Presort) discounts; 10% limitation on oversized parcels; criteria 
for machinability and nonmachinability; combined mailings of Standard 
Mail (A) and Standard Mail (B) parcels; and vehicle unloading 
requirements.
    In addition to receiving comments as part of the formal rulemaking 
process, the Postal Service has had extensive ongoing exchanges of 
viewpoints with representatives of the parcel shipping industry. This 
cooperative effort has led

[[Page 37960]]

to the development of revised standards that the Postal Service 
believes strikes a better balance between the interests of mailers and 
their concerns about qualifying for the most advantageous postage rate 
discounts at the lowest possible mailing costs and the needs of the 
Postal Service for providing high-quality service, containing costs, 
and optimizing operational efficiency. Significant revisions have been 
made in the proposed standards, especially as they relate to mail 
preparation requirements for the new destination sectional center and 
delivery unit discount rates.
    Several other issues unrelated to the R97-1 rate case emerged and 
are not addressed in the final standard. These issues concern extension 
of the destination bulk mail center rates (DBMC) to Alaska, Hawaii, and 
Puerto Rico, new criteria for parcel machinability or nonmachinability, 
and updated definitions of ``perishable'' and ``nonperishable'' parcels 
that take into account improved packaging and containerization. They 
will be reviewed separately by the Postal Service in the future and any 
changes to existing standards will be handled through separate 
rulemaking procedures.
b. Parcel Barcodes
    Two commenters indicated that they would support a barcode 
certification process, and that this process should be published at 
least 60 days prior to rate availability. In lieu of a barcode 
certification process, the Postal Service is looking at methods to 
verify the quality of barcodes during the verification process using 
commercially available barcode verification equipment.
    One commenter indicated that the barcoded discount should be 
available for pieces processed at any postal facility that is automated 
to use the ZIP Code barcode for sorting, including ASFs that now or in 
the future have barcode scanning capabilities. The Postal Service has 
determined that the Phoenix, Arizona, ASF has barcode scanning 
capabilities. Accordingly, the Postal Service has revised the standards 
for eligibility for the barcoded discount for Parcel Post mail to 
include machinable parcels eligible for the DBMC rate that are entered 
at the Phoenix ASF.
    One commenter raised a question about the need for having human-
readable characters representing the 5-digit barcode appear on a 
mailpiece's address label since it duplicates information already 
provided in the address and takes up limited label space. Having the 
human-readable ZIP Code appear as part of the barcode printing process 
immediately below the barcode is useful in determining that the correct 
barcode was applied to the mailpiece, particularly if the barcode is 
applied in a process separate from applying the address. Since 
generally the ZIP Code in the address block is used in the process of 
applying an address block barcode, the Postal Service has decided to 
revise the standard. Therefore, the numeric equivalent of the barcode 
will not be required to appear immediately below the barcode when the 
barcode is printed as part of the address block (on the same label as 
the mailing address and in close proximity to that address). However, 
if the barcode label is produced separately from the address label, the 
human readable ZIP Code information must be included. This decision 
will give mailers some flexibility in how they prepare their address 
labels while still meeting postal concerns about having barcodes that 
are correct for the addresses on the parcels.
    Another commenter raised several questions about the technical 
specifications included in the proposed rule. Clarification was 
requested for the average measured narrow element (bar or space) width. 
The average measured narrow element is the barcode X-dimension that 
typifies the arithmetic mean of the barcode narrow elements. A minimum 
clear or quiet zone equal to 10 times the average measured narrow 
element (bar or space) width must be maintained on either side of a 
barcode as defined in ANSI X3.182-1990.
    A second question was whether mailers and their suppliers would 
have to start measuring barcode spaces and bar widths more 
scientifically to determine what dimension is appropriate for the clear 
space surrounding parcel barcodes on either side. The Postal Service is 
confident that mailers will be able to determine the average narrow 
element widths and barcode quality by using commercially available 
barcode verification equipment.
    A related question had to do with how the Postal Service would 
administer this specification. The Postal Service is looking at methods 
to verify the quality of barcodes during verification by using 
commercially available barcode verifiers to measure barcode parameters.
    Another question concerned the basis for requiring a minimum clear 
zone equal to 10 times the average measured narrow element (bar or 
space) width on either side of the barcode. The advantage to the Postal 
Service for using a minimum clear zone of 10 times the average narrow 
element width is to ensure the reliable reading of barcodes on 
currently deployed postal equipment. The quiet zone specification for 
the barcode symbologies in question is defined in the AIM/USS symbol 
specification. Additionally, manufacturers of barcode readers advise 
that a minimum clear zone of 10 times the average narrow element width 
enhances barcode readability.
    This commenter also asked why the \1/8\-inch dimension could not be 
used. The reason is that \1/8\ inch is less than 10 times the average 
narrow element width for the minimally defined narrow element width of 
13 mils, and, therefore, not in compliance with the AIM/USS symbology 
specification and the ANSI print code quality guidelines (ANSI X3.182-
1990). Another question from this same commenter concerned whether the 
proposed measurement would allow greater room for shifting of the piece 
under the barcode reader on the parcel sorter machines. The proposed 
clear zone specification is the minimum acceptable standard as provided 
in the ANSI print code quality guidelines of ANSI X3.182-1990.
c. Oversized Parcels
    The Postal Service had included in the proposed rule provisions for 
mailing oversized parcels (parcels exceeding 108 inches but not more 
than 130 inches in combined length and girth) at the rates equal to a 
70-pound parcel for the applicable zone provided they constituted no 
more than 10% of the total pieces in a mailing. Two commenters 
questioned the 10% limit. The PRC's recommended decision included zoned 
rates for such oversized pieces that are higher than the 70-pound 
rates. The PRC did not recommend a 10% limit on such pieces but 
recommended higher rates. Since the Governors of the Postal Service 
approved this provision of the PRC's recommended decision, the final 
DMM standards do not include a 10% limit on such oversized pieces.
d. DSCF Rate Mailings
    Nine of the 10 Standard Mail (B) commenters had comments about the 
proposed standards for destination sectional center facility (DSCF) and 
delivery unit (DDU) rate mailings. Three parcel consolidation shipping 
companies submitted comments favoring more flexible, less restrictive 
requirements. In general, the comments favored lower minimum volumes 
for rate eligibility than those proposed by the Postal Service, 
optional entry points, and greater flexibility in the preparation 
requirements so mailers could choose to

[[Page 37961]]

prepare pieces directly on pallets, in pallet boxes on pallets, or in 
sacks.
    One commenter proposed that the Postal Service eliminate the use of 
sacks for the DSCF rate. This commenter believed that eliminating sacks 
as an option would avoid additional handlings of sacks at postal 
facilities. This commenter also indicated that very few parcel mailers 
would be able to place 10 parcels in a single sack and that this 
minimum could effectively eliminate sacked mail. Five other commenters 
also thought the proposed sack minimum of 10 pieces was too high and 
said it would discourage DSCF mailings. While several commenters 
proposed adopting minimums that would utilize sack volume and weight 
factors, these factors are not included as part of the costing 
determinations for the rate. The critical cost determinant for the rate 
is the number of pieces per handling. In the final DMM standards the 
minimum number of pieces per sack has been reduced from 10 to seven. 
The decision to reduce the minimum to seven pieces is being made with 
the expectation that an average of 10 pieces per sack will be achieved 
to support the worksharing discount. In addition, the final DMM 
standards allow for one overflow sack per 5-digit destination that may 
contain fewer than seven pieces.
    Six commenters sought to eliminate the provision prohibiting 
overflow pallets. One commenter said that since overflow trays of 
letters are permitted, overflow pallets of parcels also should be 
allowed. This argument is not persuasive because the cost of handling a 
pallet is much greater than the cost of handling a tray. It costs as 
much to handle a less-than-full pallet as it does a full one. However, 
the standard has been modified in this final rule to accommodate 
overflow from pallets. Provisions have been added to the DMM standards 
that allow overflow from 5-digit pallets to be placed in 5-digit sacks. 
Overflow sacks will have no minimum piece requirement and the pieces in 
overflow sacks will be eligible for the DSCF rates. The Postal Service 
also has added provisions that will allow a mailer to present to a DSCF 
overflow 5-digit pallets (that by definition do not meet the pallet 
minimums for the DSCF rate) provided the DBMC rates are paid for the 
pieces on such overflow pallets.
    Five commenters expressed concern over the 5-digit pallet minimums 
specified in the proposed rule. In setting the minimum specified in the 
proposed rule, the Postal Service was guided by per-piece handling 
costs and concerns that a reduction in the average number of pieces per 
handling resulting in higher costs, would adversely affect the 
viability of the rate. Small volume pallets would increase handling 
costs and also would take more cube space on transportation. While 
suggesting differing alternatives to the Postal Service proposal, these 
five commenters were in agreement that the requirement of a minimum of 
50 pieces and 250 pounds per pallet was too high. To resolve their 
concerns and those of the Postal Service about piece handling and 
transportation costs, the Postal Service has added a new option for 
preparing 5-digit pallets to qualify for the DSCF rate. Under the new 
option, pallets may be prepared that contain as few as 35 pieces and 
200 pounds of mail provided the total number of pallets prepared for 
the DSCF rate in the mailing average at least 50 pieces per pallet. 
Under this new option, no other pallet preparation or sack option may 
be used within a single mailing. Mailers will be required to submit 
detailed documentation and place sequential identification numbers on 
qualifying pallets of DSCF rate mail. The documentation must list each 
pallet in sequential order by pallet identification number. The listing 
must show for each pallet: the pallet identification number, the 5-
digit ZIP Code of the pallet, the total weight of pieces on the pallet, 
the total number of pieces on the pallet, and the cumulative total of 
pieces (i.e., the number equal to the number of pieces for that pallet 
plus the sum of the pieces on all pallets listed above it). This 
documentation must not include pieces prepared in overflow sacks at the 
DSCF rate, pieces prepared on overflow pallets at the DBMC rates, or 
pieces claimed at any other rate in the mailing.
    The requirement for BMC entry of DSCF rate mailings prepared on 
pallets to ZIP Codes listed in Exhibit E652.5.0 has been retained. The 
BMC provides direct transportation to the 5-digit facilities 
represented by the listed 5-digit ZIP Codes, thereby allowing certain 
quantities of mail to bypass the affected SCFs. The Postal Service 
believes that there is a need for palletized mail for the 5-digit ZIP 
Codes listed on Exhibit E652.5.0 to continue to bypass the affected 
SCFs because of the potentially limited capabilities of those SCF 
facilities. Three commenters said that they would like to have an 
option to enter DSCF rate mailings either at a BMC or an SCF. To 
support this position, one commenter contended that the same dock 
procedures for handling 5-digit containers are followed at the SCF as 
are followed at the BMC and that the distance from the SCF to a 5-digit 
facility would be less than from the BMC. The Postal Service disagrees. 
BMCs do not currently sort sacks to 5-digits or cross-dock 5-digit 
sacks. They are shipped to the SCF in 3-digit containers and are re-
worked to 5-digits at the SCF, thus adding handlings. Further, granting 
an option on a blanket basis is likely to worsen the problems 
experienced by some sectional center facilities in accommodating 
palletized mailings due to limited dock space, restricted vehicle 
maneuvering area, and other constraints. Recognizing that requiring BMC 
entry may present certain difficulties for mailers, the Postal Service 
has amended the proposed standard to allow exceptions on a case by case 
basis. A mailer may submit a written request to the appropriate Area 
Manager, Operation Support asking for an exception to Exhibit E652.5.0. 
The exception request must be submitted at least 15 days prior to the 
mailing and may be granted only for a limited time.
    The proposed standard specified that palletized DSCF rate mailings 
must be entered at the appropriate BMC listed in Exhibit E652.5.0. and 
sacked mailings must be entered at an SCF. Two commenters objected to 
these requirements. Since the requirement is consistent with the 
costing and worksharing assumptions that underlie the rate, it has been 
left unchanged. The rate assumes no handling of sacks at BMCs. Some 
mailers who were claiming the DBMC rate will benefit because now they 
can get a DSCF rate when dropping at a BMC.
    A parcel consolidator also stated that the DSCF rate should be 
allowed for mail prepared on pallets for 5-digit facilities that are 
not capable of handling pallets according to the Drop Shipment Product. 
The requirements as written allow the Postal Service to recoup the cost 
savings passed on to the mailer in the lower DSCF rate. These cost 
savings will not be realized if the SCF facility receives a 5-digit 
pallet for a 5-digit facility that cannot handle pallets. The SCF would 
need to manually unload the parcels off of the mailer-prepared 5-digit 
pallet and place them into another type of 5-digit container before the 
SCF could transport the parcels to that 5-digit facility. Accordingly, 
the DMM standards will not be revised to allow the DSCF rate for mail 
prepared on pallets for 5-digit facilities that are not capable of 
handling pallets.
    Six commenters requested reconsideration of the prohibition against 
use of pallet boxes on pallets. After further evaluation, the Postal 
Service decided to allow the use of

[[Page 37962]]

mailer-supplied pallet boxes that measure up to a maximum of 60 inches 
in height, except in the case of facilities unable to handle pallets. 
There is no minimum height requirement for the pallet box as long as 
the appropriate piece and pound minimum requirement or the 36-inches of 
mail minimum requirement are met for each pallet. One commenter also 
asked to be allowed to double-stack pallet boxes on pallets. The 
proposed standard has been revised to permit double stacking. Just as 
pallets are not allowed at the DSCF rate for those 5-digit destinations 
listed in the Drop Shipment Product as unable to handle pallets, pallet 
boxes on pallets will not be allowed for those same offices.
e. DDU Rate Mailings
    The proposed standard did not allow the use of pallet boxes for DDU 
rate mailings. Four commenters felt that pallet boxes should be 
allowed. The Postal Service agrees that they may be used and that 
mailers will need to supply them. If a mailer chooses to do so, they 
may be double-stacked. As with DDU mailings that are bedloaded or 
sacked or prepared as parcels placed directly on pallets, the vehicle 
driver is required to unload the pallet boxes and place them at a 
designated location at the delivery unit. If they are double-stacked, 
the driver must remove them from the vehicle, unstack them, and then 
remove any strapping material. At DDU facilities listed in the Drop 
Shipment Product as being unable to handle pallets, mail that has been 
placed directly on pallets or in pallet boxes on pallets must be off-
loaded by the vehicle driver from the pallet or pallet box into other 
containers specified by the delivery unit.
    Two commenters stated that Standard Mail (A) pieces should be 
counted towards the minimum volume required for the DDU rate. However, 
eligibility for the DDU rate category, as with each of the other 
destination rate categories for Parcel Post, has a fixed minimum volume 
requirement of 50 pieces of Parcel Post mail. This requirement is in 
the Domestic Mail Classification Schedule (DMCS) and cannot be 
unilaterally modified by the Postal Service.
    One commenter asked whether a separation would be required beyond a 
5-digit destination to be eligible for the DDU rate. The Postal Service 
requires a 5-digit separation only. However, if more than one 5-digit 
ZIP Code is served by a delivery unit, the mailer must separate the 
pieces by 5-digit ZIP Code when entered at the DDU.
    Another commenter wanted to bedload parcels entered at DDUs. 
Mailings may be bedloaded, placed directly on pallets, or placed in 
pallet boxes on pallets, if the facility can handle them. Since the DDU 
rate is based on worksharing factors that do not include unloading by 
Postal Service employees, the requirement for vehicle drivers to unload 
all DDU rate mailings is retained.
f. OBMC Presort and BMC Presort Rate Mailings
    Three commenters questioned why it is required that machinable 
parcels be placed in pallet boxes on pallets and why they could not be 
placed directly on pallets. In addition, three commenters wanted to use 
pallet boxes for both machinable parcels and nonmachinable parcels. The 
proposed standard has been left unchanged. The cost savings underlying 
the discount for machinable parcels assumes that machinable parcels are 
placed in pallet boxes that can be dumped by tipping the box onto the 
parcel sorting equipment instead of having to manually unload 
individual pieces from a pallet. A pallet box is placed at an incoming 
door of a BMC where there is a dumping operation. Nonmachinable parcels 
must be placed directly on pallets because they are worked at separate 
locations within a BMC. They are not dumped onto a parcel sorting 
machine since they are not machinable. These nonmachinable pieces are 
sorted manually. It is safer and more efficient to manually remove such 
pieces from pallets when they are placed directly on the pallet rather 
than in a pallet box.
    One commenter indicated that the proposed documentation for the BMC 
Presort and OBMC Presort discounts that requires a listing of the 
number of pieces on each individual BMC pallet was too onerous. The 
commenter suggested that a listing by BMC destination should satisfy 
the needs of the Postal Service. The Postal Service has reconsidered 
its documentation needs for verification purposes. Metered mail is 
required to bear the exact postage on each piece and, therefore 
documentation is not needed to verify postage. Permit imprint mail must 
be prepared so that all the mail in a single container is of the same 
weight and rate of postage unless the mail is prepared under a manifest 
mailing system or another system of documentation or records that 
permits the Postal Service to adequately verify postage. The manifest 
system will require mailers to list pieces for these rates by BMC 
destination. Accordingly, the Postal Service does not believe that any 
additional documentation will be necessary for mail entered at the BMC 
Presort or OBMC Presort discounts and has removed the documentation 
requirement from the DMM standards in this final rule.
    One commenter requested that the proposed standards for BMC Presort 
and OBMC Presort discounts be changed to allow overflow containers if 
the container was at least 50% full. The rate is based on piece 
handling efficiencies that are not realized when the containers do not 
meet the required minimum volumes. Therefore the prohibition on 
overflow containers has been retained.
g. Bedloading
    A requirement was included in proposed standard DMM E652.2.1 that 
perishable and nonperishable items in a bedloaded DBMC or bedloaded DDU 
rate mailing would have to be separated. Fruit shippers in particular 
expressed opposition to this on grounds that the current method of 
preparing mailings without separation was satisfactory and that the new 
requirement would only add to their mail preparation costs. The Postal 
Service has removed the requirement from the final standard after 
further consideration of the need for separation.
    Two commenters also requested to be allowed to bedload DSCF rate 
mailings as is allowed for DBMC and DDU rate mailings. The original 
provision limiting bedloading to DBMC rate mail entered at BMCs and 
ASFs and to DDU rate mail entered at delivery units has been retained 
in the final standard. This is because the DSCF rate is based upon 
receiving 5-digit containers of parcels that can be cross-docked to the 
5-digit delivery unit.
h. Destinating Facility Appointments and Vehicle Unloading
    The standard requiring the mailers' drivers to unload destination 
delivery unit mailings was the principal area drawing opposing 
comments. Six commenters objected to the driver unloading requirement 
for the DDU rate. A parcel shippers association and a company commenter 
took the position that unloading by drivers should be limited to 
bedloaded shipments only. The same two commenters said that postal 
employees should unload pallets of Standard Mail (B) parcels just as 
they do [Standard Mail (A)] flat mail. The current standards for the 
Standard Mail (A) DDU rates do however, require that vehicle drivers 
must unload DDU rate mailings. The comments of the parcel shippers 
association included a suggestion that assistance by postal

[[Page 37963]]

employees should be provided whenever possible. One commenter 
questioned the unloading requirement on the basis that the Postal 
Service was unlikely to make forklifts available to drivers and another 
raised the possibility that having drivers unload mailings might 
violate a postal labor agreement.
    Since the worksharing DDU rate assumes that postal employees will 
not unload shipments from vehicles, it was necessary for the Postal 
Service to retain the proposed standard without amendment. However, to 
facilitate the scheduling of drop shipments to delivery units, a 
provision has been made to allow standing appointments if shipment 
frequency is weekly or more often. Another change was made with respect 
to the proposed standard covering deposit conditions (E652.3.7) that 
stated mailings arriving more than 1 hour late for scheduled 
appointments at delivery units may be refused. This 1-hour allowance 
was incorrect. The proposed standard should have indicated 20 minutes 
to be consistent with current deposit conditions at delivery units for 
Standard Mail (A) mailings. Accordingly, the standard has been modified 
to specify 20 minutes.
    Several comments were received about destination entry shipments 
that generally requested an easing of existing provisions. For example, 
one commenter wanted to see the requirement for the time allowed for 
driver unloading of destination entry shipments to BMCs, ASFs, and SCFs 
increased from 8 to 12 hours. Another company submitting comments 
disagreed with the existing 2-hour grace period allowed for scheduled 
appointments at BMCs, requesting that the time allowance be doubled or 
even expanded to 8 hours during the peak fall mailing season. Such 
liberalization of existing standards would adversely impact the window 
needed by the Postal Service to handle mailings and will not be 
adopted.
    Another commenter wanted the Postal Service to allow a drop and 
pick option for palletized loads at BMCs. Again, the impact on postal 
operations of such a change would be negative, as, for example, postal 
employees would then have to shuttle trailers back and forth from 
staging areas to facility docks and back. Accordingly, this comment 
will not be adopted.
    Two commenters maintained that the Postal Service should reimburse 
mailers for waiting time charges, demurrage, or other detention costs 
when the cause is clearly attributable to the Postal Service or, 
alternatively, that there should be an expanded appeal process to the 
national Headquarters level. Under existing procedures two appeal 
levels, local facility manager and district manager, customer service, 
are already available to mailers. While the Postal Service is willing 
to consider possible future changes, no changes are made at this time.
i. Markings
    Two commenters supported the proposed use of a single drop shipment 
marking for DBMC, DSCF, and DDU Parcel Post rate mail. One commenter 
disagreed with the requirement for any drop shipment markings. Drop 
shipment markings are needed to develop meaningful statistical samples 
for the in-office costing system. Costs developed from this system are 
used in rate cases. Although individual rate markings for each of the 
drop shipment rates would result in more accurate costing, the Postal 
Service has determined, based on mailer input, to require only a single 
drop shipment marking for use on DBMC, DSCF and DDU Parcel Post rate 
mail. An exception will be that the current ``DBMC Parcel Post'' or 
``DBMC PP'' marking will continue to be permitted on DBMC rate mail 
instead of the new ``Parcel Post'' and ``Drop Ship'' markings until 
January 10, 2000.
    One commenter indicated that the ``Presorted Standard'' marking 
should be extended to Standard Mail (B). This commenter stated that 
many mailers now use the ``Bulk Rate'' indicia for both Standard Mail 
(A) and bulk Bound Printed Matter mailings by simply adding the ``Bound 
Printed Matter'' marking directly to the left of the ``Bulk Rate'' 
indicia. The Postal Service has amended this final rule to allow use of 
the ``Presorted Standard'' marking in lieu of the ``Presorted'' marking 
for presorted Bound Printed Matter.
    One commenter asked what will happen to an individual customer's 
mail if it does not bear the ``Parcel Post'' marking. If this mail is 
entered at a retail window, the retail clerk will add the marking to 
the mailpiece. If this mail is entered at an acceptance unit, the 
appropriate verification and acceptance processes will be performed to 
ensure that the mail is entered with proper markings. Since matter 
weighing over 16 ounces is not permitted to be placed in collection 
boxes, there is little likelihood that mail without the ``Parcel Post'' 
marking will be entered in the mailstream.
j. Combined Parcels
    One commenter stated that Standard Mail (A) parcels should be 
permitted to be combined with Standard Mail (B) parcels prepared for 
DDU entry because the preparation requirements are identical. The 
Postal Service disagrees with this statement. To qualify for Standard 
Mail (A) DDU rates, pieces must be sorted to carrier route. Except for 
merchandise samples prepared with detached address labels, the maximum 
size of Enhanced Carrier Route mail is 11\3/4\ inches high by 14 inches 
long, by \3/4\ of an inch thick (which is flat-sized mail). Because of 
the maximum size dimensions and the requirement to walk-sequence or 
LOT-sequence Enhanced Carrier Route mail, the only parcels that can 
qualify for Enhanced Carrier Route rates are merchandise samples 
prepared with detached address labels. The separate preparation 
requirements for merchandise samples with detached address labels 
prepared to qualify for the Enhanced Carrier Route rates does not lend 
itself to combined preparation with Standard Mail (B) parcels. 
Accordingly, Standard Mail (A) and Standard Mail (B) parcels will not 
be permitted to be combined when qualifying for their separate DDU 
rates.
    One commenter requested that the requirement for minimum volumes to 
be met by Standard Mail (B) alone should be removed since the incentive 
for combining classes is to use the combined volume to meet the pallet 
and sacking minimums. Meeting the pallet and sack minimums based on 
Standard Mail (B) alone is required only when the Standard Mail (B) 
preparation method requires a minimum number of pieces (e.g., it is not 
required when the DSCF minimum of 36 inches of mail on a 5-digit pallet 
is used). The Postal Service wants to ensure that it is moving a 
substantial volume of mail on a single 5-digit pallet. If mailers fill 
a pallet with 36 inches of predominately Standard Mail (A) mail, it 
would take a large number of Standard Mail (A) pieces to do so. By the 
same token, placing predominately Standard Mail (A) parcels on a pallet 
based on a 50-piece minimum criteria could result in a very small 
pallet. Therefore the Postal Service is retaining the rules as 
proposed.

7. Special Services

a. Business Reply Mail
    Eleven comments were received concerning the proposal to increase 
the minimum thickness of BRM pieces from 0.007 inch to 0.009 inch thick 
for those pieces that bear a barcode and measure greater than 4\1/4\ by 
6 inches. Nine commenters stated that 0.009 inch thick paper stock is 
more expensive than 0.007 inch thick paper stock. Six

[[Page 37964]]

commenters indicated that the increased weight of the stock would 
increase shipping and trucking costs of the paper stock and increase 
pound-rate postage on the outgoing mailpiece (publication) that the BRM 
piece is inserted into. Four commenters suggested that mailers will 
cease using the cards and use some other medium than the mail to 
increase their circulation and market their products. One commenter 
stated that this change is not directly related to rate and fee 
increases in Docket No. R97-1. One commenter suggested the Postal 
Service develop a new maximum size limit that could be used with 0.007 
inch thick paper stock, such as 5 inches by 7 inches. Four commenters 
stated that the Postal Service should study the impact on mailers and 
the Postal Service before adopting this requirement. Three commenters 
indicated that no compelling rationale for this change was provided in 
the proposal, such as the existence of machinability problems. Nine 
commenters indicated that there is currently only a limited supply of 
0.009 inch card stock. Two commenters indicated that mailers would need 
a grace period before this requirement went into effect so that their 
printers could develop new paper supplies. One commenter indicated that 
Postal Service testimony in R97-1 indicated that only a small 
proportion of BRM is processed through BRMAS or through barcode sorters 
and that the additional expense of thicker paper stock is not warranted 
if the pieces are not likely to be handled in an automated fashion.
    A low incidence of processing mail on barcode sorters is true only 
for the accounting activities related to BRM. However, the lower First-
Class postage rate for QBRM is based on lower costs due to processing 
pieces on barcode sorters in non-accounting operations (i. e. in 
processing the mail from the collection box to the facility where the 
accounting procedures are performed).
    The Postal Service has adopted the minimum thickness requirement of 
0.009 inch for pieces measuring over 4\1/4\ in height and/or 6 inches 
in length as proposed. This requirement is based on engineering 
studies. These studies have shown that mailable pieces not larger than 
4\1/4\ by 6 inches with a minimum thickness of 0.007 inch and meeting 
specified basis weight requirements can be successfully processed on 
automation equipment, while pieces larger than 4\1/4\ by 6 inches 
generally must be 0.009 inch thick to be successfully processed on 
automation equipment. Adoption of this rule will ensure that business 
reply pieces entered at the automation QBRM rate or that otherwise bear 
a barcode will be sufficiently sturdy to be successfully transported 
through postal automation equipment and will minimize the potential for 
damaged pieces. The Postal Service implemented this minimum thickness 
requirement for automation rate mailings on February 24, 1991, based on 
these studies and on mailer complaints concerning damaged pieces. 
Although at that time these minimum thickness requirements were not 
applied to BRMAS or other barcoded BRM pieces, the Postal Service 
believed then and believes today that the 0.009 inch minimum thickness 
requirement for pieces measuring over 4\1/4\ by 6 inches is necessary 
for efficient processing on automation equipment. In view of the 
discounted First-Class postage rate applied to QBRM postage that is 
based primarily on the savings for automated processing, the Postal 
Service feels it is appropriate to apply the same standards to this 
mail as it does to other mail entered at automation rates. The Postal 
Service understands that mailers may need time to deplete existing 
stock of BRM mailpieces and to develop suppliers of thicker paper 
stock. Therefore, the effective date of the 0.009 inch minimum 
thickness requirement for barcoded BRM pieces measuring over 4\1/4\ by 
6 inches will be January 10, 2001. This gives mailers 2-\1/2\ years 
notice to comply with this change.
    Only one comment was received regarding barcode placement. This 
commenter indicated that the proposed change to DMM S922.5.1 was 
confusing. This commenter assumed that the Postal Service was not 
seeking to further restrict placement of barcodes on letter-size BRM 
and asked why the one-year grace period for compliance was needed. The 
proposed change was to make the placement of lower right barcodes for 
BRM comply with C840. Currently, pieces of BRM prebarcode in the lower 
right corner may: (1) have a barcode clear zone with a left boundary 
that is 4\1/2\ inches from the right edge of the piece (not 4\3/4\ 
inches as required in C840); (2) have a lower right barcode for which 
the leftmost bar is located between 3\1/4\ and 4 inches from the right 
edge of the piece (not between 3\1/2\ and 4\1/4\ inches as required 
under C840); (3) have a lower right barcode window, that has a left 
boundary measuring 4\1/2\ inches from the right edge of the piece (not 
4\3/4\ inches as required under C840). The final standards in DMM 
S922.5.1 have been revised to clarify this matter. Mailers will be 
given until January 10, 2001, to use existing stocks of such 
prebarcoded BRM envelopes and cards and to procure new stock that meets 
the DMM C840 requirements.
    One comment was received questioning why proposed S922.6.8c(4) 
prohibits the use of business reply labels on letter-size envelopes 
with a height more than 4\1/2\ inches. This is not a change. The same 
standard appears today in S922.6.10c(4). This standard will be 
maintained in order to assure the readability of the address on the 
letter-size piece. If labels were permitted on letter-size pieces up to 
the maximum height of 6\1/8\ inches, the address on the label would not 
be placed within the optical character read (OCR) area of the 
mailpiece.
    One comment was received regarding the format error notification 
process described in proposed DMM S922.5.3. The commenter stated that 
although mailers are willing to correct errors immediately, they need a 
grace period in which pieces already distributed will be returned. The 
cited DMM section only requires that all future BRM pieces distributed 
by any means must meet the BRM format standards. This commenter also 
indicated that the requirement for mailers who have had their BRM 
permit revoked for repeatedly distributing BRM mail that does not meet 
the format requirements to submit 2 samples of each BRM format for 
approval for a two-year period after completing a new BRM application 
is overly punitive. The commenter stated publishers receive inserts too 
close to printing dates to allow time for the Postal Service to review 
the format. The commenter should note that this provision is not a 
change. The same standard appears today in S922.5.7 and has been in 
place for several years. The Postal Service feels that no change in 
policy is warranted at this time. This provision only applies to permit 
holders whose permit was previously revoked for repeated format 
violations and should not affect the vast majority of mailers.
b. Insurance
    One commenter requested clarification of DMM S913.12b. He indicated 
it is not clear what level of service would be provided to an item 
mailed under this DMM section. This section in essence states that 
matter mailed at First-Class Mail or Priority Mail rates may be insured 
only if it consists of matter that could also be mailed at Standard 
Mail rates (that is, it is not any of the types of items required to be 
mailed at First-Class rates under DMM E110). The level of service 
provided for these items will be First-Class or Priority Mail service 
according to the weight of the item and the rate of postage paid.

[[Page 37965]]

c. Return Receipt Service
    Three commenters had concerns over the Postal Service's proposal to 
modify DMM D042.1.7a and b. The proposed revisions stipulated that 
organizations receiving large volumes of pieces bearing return receipts 
would only need to sign a manifest listing all of the accountable mail 
before the mail was delivered to the organization. The current DMM 
rules stipulate that the recipient sign the delivery receipt and the 
return receipt and hand the receipts over to the Postal Service before 
the mailpieces can be opened, or given to the recipient. These 
commenters were concerned that allowing customers to complete return 
receipts without Postal Service controls is inappropriate and does not 
guarantee the customer that the return receipt he or she has paid for 
will be returned or will be completed properly. The Postal Service 
proposed this revision to reflect the operational conditions in plants 
that employ automated delivery receipt systems for processing 
accountable mail. However, based on the mailer comments received, the 
Postal Service determined not to revise DMM D042.1.7a and b. The Postal 
Service will work with its customers that receive large volumes of 
return receipts to ensure that our customers get the recipient's 
signature, date of delivery, and address, if different, under the 
standards in the current DMM.
e. Requests for Use of Various Special Services With Standard Mail (A)
    Two commenters recommended that DMM E612.4.10 be revised to allow 
COD, insurance, and registry service with Presorted Standard Mail (A). 
Another commenter indicated that certified, COD, insurance, registered, 
return receipt, return receipt for merchandise, special handling, and 
delivery confirmation services should be available for Standard Mail 
(A) since these services are available today for merchandise and 
providing these services would generate revenue. DMM E612.4.10 contains 
the information in current DMM E612.4.1. This section states that bulk 
rate Standard Mail (A) may not use certified, collect on delivery, 
insurance, registry, return receipt for merchandise, and special 
handling services. The proposed DMM language simply moved this 
information into a separate section so that it is easier to find. 
Although a few of the above services were previously available for 
Standard Mail (A) matter mailed at the single-piece rates, the 
elimination of the single-piece Standard Mail (A) rates now excludes 
any Standard Mail (A) from receiving these services. Offering these 
services with Standard Mail (A) would in many instances require a 
classification case to be filed with the PRC. Therefore, such changes 
will not be implemented with these R97-1 implementation rules. However, 
the Postal Service may consider offering some of these services with 
Standard Mail (A) at a future date.

D. Summary of Domestic Mail Manual (DMM) Changes

    The following are changes organized by DMM module. They are 
intended as an overview only and should not be viewed by readers as 
defining every revision.

A  Addressing

    A060.5.3 is amended to eliminate the option to pay postage for 
excess or undeliverable detached address labels (DALs) or items being 
returned at the single-piece Standard Mail (A) rates. Postage for 
excess or undeliverable DALs or items being returned is computed at the 
applicable single-piece rate (First-Class Mail, Priority Mail, or 
Standard Mail (B)) for the combined weight of the DAL and the 
accompanying item, regardless of whether both are being returned.

C  Characteristics and Content

    References to single-piece Standard Mail (A) are deleted 
throughout. C050 is revised to add ``Nonmachinable'' to the title of 
5.0 and 6.0 (Irregular and Outside Parcels). C100.4.0 is revised to 
include keys and identification devices as items that may be considered 
nonstandard mail. C600.1.2 is amended to allow Parcel Post mailings to 
include pieces measuring over 108 inches, but not over 130 inches, in 
combined length and girth, if the oversized Parcel Post rate is paid. 
C600.1.2 also is amended to require Parcel Post pieces that weigh less 
than 15 pounds but measure more than 84 inches in combined length and 
girth to pay a rate equal to that of a 15-pound parcel for the zone to 
which the parcel is addressed. C600.2 is amended to delete the 
nonstandard surcharge criteria that formerly applied to single-piece 
Standard Mail (A). C810.2 is amended to provide new maximum weights for 
automation ``heavy'' letters. C820.2 is amended to increase the maximum 
weight limit for First-Class automation rate flats to 13 ounces. C840.8 
is amended to add a stipulation for ZIP+4 barcodes for QBRM and other 
barcoded BRM. A new C850 is added to provide standards for barcodes on 
parcels.

D  Deposit, Collection, and Delivery

    D010.1.1 is amended to delete the term ``single-piece.'' D010.1.2 
is amended to exclude Parcel Post pieces mailed at the DDU and DSCF 
rates (as well as mail at DBMC rates), or claiming the OBMC Presort 
discount, from obtaining pickup service. D600.2 is amended to remove 
the sentence that allowed single-piece Standard Mail (A) bearing 
adhesive stamps to be placed in collection boxes.

E  Eligibility

    E060.5 is amended to reflect the new 13-ounce weight limit for 
First-Class Mail. E060.12 is amended to remove single-piece Standard 
Mail (A) as a permissible rate for the return of items under penalty 
merchandise return service. E110.4 is revised to delete references to 
Presorted Priority Mail. E120 is revised to remove references to 
Presorted Priority Mail, to add information on rates and fees 
applicable to keys and identification devices, and to make minor 
organizational changes. E130 is revised for clarity and to add 
information on rates and fees applicable to keys and identification 
devices. E150 is added to provide information on qualified business 
reply mail. E200.14 is amended to reflect the elimination of single-
piece Standard Mail (A) rates. E230.1, and E230.3 through E230.5 is 
revised to provide for separate 5-digit and 3-digit rates for Regular, 
Nonprofit, Classroom, and In-County subclasses, and to show that the 
applicable 3-digit rates will apply to both unique and nonunique 3-
digit ZIP Code areas. E230.6 is revised to allow In-County mail to 
qualify for high density carrier walk-sequence rates based on either a 
minimum of 125 pieces per route or 25% of the total active possible 
deliveries on the carrier route. E230.7 is amended to require 
documentation for pieces and copies mailed to all 3-digit destinations, 
(not only unique 3-digit destinations). E240.2 is amended to is revised 
to provide for separate 5-digit and 3-digit rates for Regular, 
Nonprofit, Classroom, and In-County subclasses, and to show that the 
applicable 3-digit rates will apply to both unique and nonunique 3-
digit ZIP Code areas. E600 is revised throughout to delete references 
to single-piece Standard Mail (A) and to change the name 
``nonautomation presort'' to ``Presorted'' or ``Presorted Standard.'' 
E612 is revised to change the weight breakpoints for the Standard Mail 
(A) minimum per-piece rates, require Standard Mail (A) mailed at a 
Standard Mail (B) rate to show the applicable Standard Mail (B) 
marking, and to move restrictions on use of

[[Page 37966]]

special services from E612.4.1 to new section E612.4.10. E620 and E630 
are reorganized so that E620 contains standards for Standard Mail (A) 
and E630 contains standards for Standard Mail (B). E620 is revised to 
add new minimum volume requirements for Presorted Standard mailings, to 
add provisions for mailing certain matter not eligible for Standard 
Mail (A) rates that bears Standard Mail (A) markings at the single-
piece First-Class or Priority Mail rates, and to add provisions for the 
new residual shape surcharge. E630 is revised to add provisions for new 
DSCF and DDU rates and new OBMC Presort, BMC Presort discounts, the 
oversized parcel provisions, and balloon rate provisions. E630 is 
revised to add provisions for a barcoded discount for Standard Mail (B) 
rates. E630 is revised to change marking requirements for Standard Mail 
(B). E640 is amended to clarify that Nonprofit rate mail may qualify 
for automation rates. E652 is revised to add provisions for DSCF and 
DDU Parcel Post rates.

F  Forwarding and Related Services

    F010 is amended throughout to delete references to single-piece 
Standard Mail (A). F010 is amended to revise forwarding and related 
services for Periodicals and for Standard Mail (A) to show that return 
postage is subject to the First-Class or Priority Mail rates based on 
weight, except for machinable Standard Mail (A) parcels returned under 
Bulk Parcel Return Service (BPRS). F020 is revised to remove references 
to single-piece Standard Mail (A).

G  General Information

    G043 is revised to add names and addresses of organizations from 
whom barcode specifications and barcode grading requirements can be 
obtained.

L  Labeling Lists

    Section L100, including labeling list L102, ADCs--Presorted 
Priority Mail, is deleted. New labeling list L605, BMCs--Nonmachinable 
Parcel Post, is added.

M  Mail Preparation and Sortation

    M011.1 is revised to add the definition of an overflow sack for 
Parcel Post DSCF rate mailings. M011.1 is revised to amend the 
definition of a mailing. M012 is revised to change marking requirements 
for Standard Mail (A) and (B), to clarify that no marking is needed for 
single-piece First-Class Mail, and to specify time frames for the new 
marking requirements. In M032, Exhibit 1.3 is revised to show headings 
for new Periodicals rate levels and for new Parcel Post rates and to 
change the name ``bulk Bound Printed Matter'' to ``presorted Bound 
Printed Matter.'' M033.1 is revised to reflect the new 13-ounce weight 
limit for First-Class Mail. M041 is revised to reflect requirements for 
new Standard Mail (B) rates (OBMC Presort, BMC presort, DSCF, DDU). 
M045 is revised to add preparation requirements for new Standard Mail 
(B) rates (OBMC Presort, BMC presort, DSCF, DDU). M050.4 is amended to 
reflect revised placement of sequencing date information on mailing 
statements and to add documentation requirements for the Periodicals 
In-County rate mail that qualifies for high density rates under the new 
25% of the total active possible deliveries per carrier route criteria. 
M072.1.1 is amended for clarity. M072.2.5 is amended to delete 
references to ``Bulk Parcel Post,'' revise ``bulk Bound Printed 
Matter'' to ``presorted Bound Printed Matter,'' add an exception to the 
zone separation requirement, and to add information on preparation of 
drop shipment mail for Parcel Post DSCF and DDU rates. M073 is revised 
to add information about permissibility and preparation requirements 
for combining Standard Mail (A) and Standard Mail (B) parcels in 
mailings qualifying for new Parcel Post rates (OBMC Presort, BMC 
Presort, DSCF, and DDU). M120 is revised to delete the sections on 
Presorted Priority Mail. M200 is revised to require preparation of an 
SCF level of sack. M130.2 and M130.3 are amended to revise their 
titles. M130.5 is revised to reflect the new 13-ounce weight limit for 
First-Class Mail. M200.3 is revised to require preparation of an SCF 
sack for nonletters, to delete the provisions for an optional origin/
required entry 3-digit sack, and to add provisions for an optional 
origin/required entry SCF sack. M620 is revised to change 
``nonautomation presort'' to ``Presorted,'' to revise references to 
E620 and E630, and to revise rate marking requirements including time 
frames for changing the ``Bulk Rate'' marking to ``Presorted 
Standard.'' M630 is amended to add preparation requirements for DSCF 
and DDU rates; to change ``nonautomation presort'' to ``Presorted;'' to 
revise references to E620 and E630; and to revise rate marking 
requirements for all Standard Mail (B) including placement of subclass 
markings, new generic rate markings for drop shipment rates, revising 
``bulk Bound Printed Matter'' to ``presorted Bound Printed Matter, 
eliminating the ``Bulk Parcel Post'' marking, removing the requirement 
for a 5-digit or 3-digit ZIP Code in the rate marking for DBMC rates, 
eliminating the ``catalog rate'' marking for Bound Printed Matter, and 
adding the abbreviation ``PRSRT'' for ``Presorted'' in the ``Presorted 
Special Standard'' marking. M810 is reorganized and revised for clarity 
and to add new rate categories for Periodicals and to make the 5-digit/
scheme sortation level optional for Periodicals automation letters. 
M820 is revised to make the SCF sack a required level of presort for 
Periodicals automation flats, to delete the provisions for an optional 
origin/required entry 3-digit sack, and to add provisions for an 
optional origin/required entry SCF sack.

P  Postage and Payment Methods

    P011 is revised to delete references to single-piece Standard Mail 
(A). P012 revises standardized documentation for Periodicals to add 
separate 5-digit and 3-digit rates for both automation and 
nonautomation and to add new rate abbreviations for nonautomation 5-
digit and 3-digit rates. P013 is revised to reflect payment for keys 
and identification devices at First-Class Mail and Priority Mail rates 
plus a $0.30 fee instead of single-piece Standard Mail (A) rates, to 
delete sections concerning computation of single-piece Standard Mail 
(A) rates, to revise the breakpoints for Standard Mail (A) rates, to 
delete references to Bulk Parcel Post, and to revise the term ``bulk 
Bound Printed Matter'' to ``presorted Bound Printed Matter.'' P014.2 is 
revised to delete references to single-piece Standard Mail (A). 
P030.1.5 is revised to reflect the new 13-ounce weight limit for First-
Class Mail. P030.5.4 is revised to delete a reference to single-piece 
Standard Mail (A). P040.4.1 is revised to reflect the new rate marking 
requirements for First-Class and Standard Mail and delete examples for 
single-piece Standard Mail (A). P100 is revised to add payment 
provisions for mailing certain matter not eligible for Standard Mail 
(A) rates that bears Standard Mail (A) markings at the single-piece 
First-Class or Priority Mail rates. P600 is revised to establish 
postage payment methods for Standard Mail (B) containing a combination 
of discounts, to delete information on payment and use of ``SNGLP'' 
marking for single-piece Standard Mail (A), and to clarify that for 
mailings of identical weight, Standard Mail (A) postage may be affixed 
to all pieces in the mailing at the lowest rate in the mailing job. 
P710 is revised to reflect the new marking requirements for regular 
rate Standard Mail (A). P750 is revised to include instructions on the 
new Parcel Post DSCF and DDU rates. P760 is revised to change 
``nonautomation'' to ``Presorted'' for Standard Mail (A) and to delete

[[Page 37967]]

references to single-piece Standard Mail (A).

R  Rates and Fees

    The entire module is revised to reflect new rates and fees.

S  Special Services

    S010 is revised to add information on claims for the new bulk 
insurance service. S070 is revised to clarify applicability of Priority 
Mail Drop Shipment. S911 is revised to reflect changes to indemnity 
coverage for registered mail. S913 is revised to eliminate references 
to single-piece Standard Mail (A), to provide clarification to matter 
eligible for insurance, and to include rules for the new bulk insurance 
service. S915.1 and S915.2 are amended for clarity. S917 is amended to 
delete availability of return receipt for merchandise with single-piece 
Standard Mail (A). S921 is amended to delete availability of COD with 
single-piece Standard Mail (A). S922 is revised to change references 
from BRMAS to QBRM, to remove eligibility requirements for BRMAS (these 
are relocated under QBRM in E150), to require all BRM bearing barcodes 
to meet the requirements of C810 and C840 (except basis weight 
requirements for envelopes in C810.7.1), and to replace current BRM 
standards relative to reflectance requirements, paper weight, and self-
mailers with current mailpiece design requirements in C810 and C830 
(except basis weight requirements for envelopes in C810.7.1, and the 
retention and clarification of current prohibition of red fluorescence 
in excess of 4.0 phosphor meter units). S923 is revised to eliminate 
the return of merchandise return service pieces at single-piece 
Standard Mail (A) rates, to prescribe new rates of return and 
corresponding markings, and to reflect new standards concerning 
registered mail used with that service. S924 is revised to eliminate 
references to single-piece Standard Mail (A). S930 is amended to remove 
availability of special handling service for single-piece Standard Mail 
(A), and to correct the rules to allow First-Class Mail and Priority 
Mail to receive special handling.

List 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]

    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. Revise the following sections of the Domestic Mail Manual as 
follows:

A  Addressing

A000  Basic Addressing

* * * * *

A060  Detached Address Labels (DALs)

* * * * *
5.0  POSTAGE
* * * * *

5.3  Returns

[Amend the first sentence of 5.3 by replacing ``Standard Mail'' with 
``First-Class Mail'' to read as follows:]
    Postage for excess or undeliverable DALs that are properly endorsed 
or for items being returned is computed at the applicable single-piece 
rate (First-Class Mail, Priority Mail, or Standard Mail (B)) applicable 
to the combined weight of the DAL and the accompanying item, regardless 
of whether both are being returned. * * *
* * * * *

C  Characteristics and Content

C000  General Information

C010  General Mailability Standards

1.0  MINIMUM AND MAXIMUM DIMENSIONS
* * * * *

1.6  Nonstandard Surcharge

[Amend 1.6 by removing ``or C600, respectively,'' and ``or Single-Piece 
Standard Mail'' to read as follows:]
    Because of address placement (orientation) under C100, a mailable 
piece of First-Class Mail weighing 1 ounce or less can be subject to 
the corresponding nonstandard surcharge.
* * * * *

C022  Perishables

* * * * *
3.0  LIVE ANIMALS

3.1  Day-Old Poultry

[Amend 3. 1f by adding ``or Priority Mail'' for clarity as follows:]
    Day-old poultry vaccinated with Newcastle disease (live virus) is 
nonmailable. Live day-old chickens, ducks, geese, partridges, pheasants 
(mailable only from April through August), guinea fowl, quail, and 
turkeys are acceptable in the mail only if:
* * * * *
    f. The shipment bears special handling postage in addition to 
regular postage, unless sent at the First-Class Mail or Priority Mail 
rate.
* * * * *

C024  Other Restricted or Nonmailable Matter

* * * * *
18.0  ODD-SHAPED ITEMS IN ENVELOPES

18.1  Nonmailable

[Amend 18.1 by removing ``Standard Mail (A) rate'' to read as follows:]
    Pens, bottle caps, and similar odd-shaped items are not acceptable 
in letter-size envelopes at the single-piece First-Class Mail rate.
* * * * *

C050  Mail Processing Categories

* * * * *
[Amend 5.0 to add ``Nonmachinable'' to the title as follows:]
5.0  IRREGULAR PARCEL (NONMACHINABLE)
* * * * *
[Amend 6.0 to add ``Nonmachinable'' to the title as follows:]
6.0  OUTSIDE PARCEL (NONMACHINABLE)
* * * * *

C100  First-Class Mail

1.0  DIMENSIONS

1.1  Maximum Weight and Size

[Revise 1.1 to show the new maximum weight of 13 ounces to read as 
follows:]
    Each piece may not weigh more than 70 pounds. Matter at First-Class 
Mail rates may not exceed 13 ounces. The combined length and girth of a 
piece (i.e., the length of its longest side plus the distance around 
its thickest part) may not exceed 108 inches. (Lower size or weight 
standards apply to mail claimed at certain rates or addressed to 
certain APOs and FPOs.)
* * * * *
4.0  NONSTANDARD MAIL
[Revise 4.0 to include keys and identification devices as items subject 
to the nonstandard classification as follows:]
    Except for Priority Mail, any piece of First-Class Mail (including 
keys or identification devices) weighing 1 ounce or less and not 
claimed at a card rate is nonstandard and subject to the applicable 
surcharge if its thickness

[[Page 37968]]

exceeds \1/4\ inch or, if based on the placement (orientation) of the 
address, its length exceeds 11\1/2\ inches, its height exceeds 6\1/8\ 
inches, or its aspect ratio (length divided by height) is less than 1.3 
or more than 2.5.
* * * * *

C600  Standard Mail

1.0  DIMENSIONS

1.1  Standard Mail (A)

[Amend 1.1b to read as follows:]
    These dimensional standards apply to Standard Mail (A):
* * * * *
    b. Presorted (\3/5\ and basic rate) Regular and Nonprofit Standard 
Mail (A) are subject only to the basic mailability standards in C010.
* * * * *

1.2  Standard Mail (B)

[Amend and renumber 1.2 as follows to specify requirements for 
oversized Parcel Post and add a Parcel Post balloon rate:]
    These dimensional standards apply to Standard Mail (B):
    a. No piece may weigh more than 70 pounds, except matter at Bound 
Printed Matter rates may not weigh more than 15 pounds.
    b. Except for Parcel Post under 1.2c, the combined length and girth 
of a piece (i.e., the length of its longest side plus the distance 
around its thickest part) may not exceed 108 inches.
    c. Parcel Post pieces measuring over 108 inches in combined length 
and girth, but not more than 130 inches in combined length and girth, 
are mailable at the applicable oversized rate.
    d. Parcel Post pieces measuring over 84 inches in combined length 
and girth, but not more than 108 inches in combined length and girth, 
and weighing less than 15 pounds are mailable at the rate equal to that 
of a 15-pound parcel for the zone to which the parcel is addressed.
    e. Two or more packages may be mailed as a single parcel, if they 
are about the same size or shape or if they are parts of one article, 
if they are securely wrapped or fastened together, and if they do not 
together exceed the weight or size limits.
    f. Lower size or weight standards apply to mail claimed at certain 
rates, addressed to certain APOs and FPOs, or sent by the Department of 
State to U.S. Government personnel abroad.
    g. Pieces might be subject to minimum weight or dimensions based on 
the standards for specific rates.

[Delete current 2.1, renumber current 2.2 as 2.0 and revise to read as 
follows:]
2.0  NONMACHINABLE SURCHARGE
    Items described in E630 and mailed at the inter-BMC/ASF Parcel Post 
rates are subject to a nonmachinable surcharge unless the applicable 
special handling fee is paid.
* * * * *

C800  Automation-Compatible Mail

C810  Letters and Cards

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

2.3  Maximum Weight

[Amend 2.3c through 2.3f to revise the maximum ounce weights for heavy 
letters to read as follows:]
    Maximum weight limits are as follows:
* * * * *
    c. 3.3087 ounces: automation Regular Standard Mail (A) heavy 
letters, subject to 7.5.
    d. 3.3062 ounces: automation Enhanced Carrier Route heavy letters, 
subject to 7.5.
    e. 3.2873 ounces: automation Nonprofit Standard Mail (A) heavy 
letters, subject to 7.5.
    f. 3.3103 ounces: automation Nonprofit Enhanced Carrier Route, 
automation First-Class Mail, and automation Periodicals heavy letters, 
subject to 7.5.
* * * * *

C820  Flats

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

2.4  Maximum Weight

[Revise 2.4 to show the new maximum weight of 13 ounces to read as 
follows:]
    Maximum weight limits are as follows:
    a. For First-Class Mail, 13 ounces.
    b. For Periodicals, 16 ounces.
    c. For Standard Mail (A), less than 16 ounces
* * * * *

C840  Barcoding Standards

* * * * *
8.0  5-DIGIT AND ZIP+4 BARCODES
[Revise the title and add a new sentence to 8.1 to read as follows:]

8.1  Permissibility

    An automation rate letter-size piece may not bear a 5-digit or 
ZIP+4 barcode in the lower right corner (barcode clear zone); the piece 
may bear a 5-digit or ZIP+4 barcode in the address block only if a DPBC 
appears in the lower right corner. A Qualified Business Reply Mail 
piece and other barcoded letter-size Business Reply Mail must only bear 
a ZIP+4 barcode; the ZIP+4 barcode may appear in the address block when 
printed on an insert that appears through a window or on an address 
label affixed directly to the piece; or may appear in the lower right 
corner either printed directly on the mailpiece or on an insert that 
appears through a window. An automation rate flat-size piece must not 
bear a 5-digit barcode.
* * * * *
[Add new C850 to read as follows.]

C850  Standard Mail (B) Barcode Standards

1.0  BARCODE SYMBOLOGIES

1.1  Basic Requirement

    Every addressed mailpiece eligible for a Standard Mail (B) barcode 
discount described in E630 must bear a properly prepared barcode that 
represents the correct ZIP Code information for the address on the 
mailpiece plus the appropriate verifier character suffix or application 
identifier prefix characters appropriate for the barcode symbology used 
as described in 1.0 through 4.0. The combination of appropriate ZIP 
Code and appropriate verifier or application identifier characters 
uniquely identifies the barcode as the postal routing code.

1.2  Permissible Barcode Symbologies.

    Until January 10, 2004, barcodes must be printed in one of the 
following symbologies: UCC/EAN Code 128; USS Code 128; USS Code I \2/
5\; and USS Code 39. Effective January 10, 2004, only the UCC/EAN Code 
128 may be used.

1.3  Postal Routing Barcode Elements

    a. UCC/EAN Code 128. For barcodes prepared using the UCC/EAN Code 
128 symbology the postal routing barcode must consist of the leading 
Application Identifier (AI) of ``420'' followed by the ZIP Code for the 
address on the mailpiece. The ZIP Code for the address on the mailpiece 
may be either the 5-digit ZIP Code or the ZIP+4 code. The Application 
Identifier indicates the meaning of the barcode. The USPS has 
designated 420 as the AI for domestic postal routing barcodes (and 421 
as the AI for international postal routing barcodes). UCC/EAN Code 128 
barcodes MUST NOT include the trailing verifier character ``9''.
    b. Other Permissible Symbologies. For the USS Code 128, USS Code I 
\2/5\, and USS Code 39 symbologies, the postal routing barcode must 
consist of the 5-digit ZIP Code for the address on the

[[Page 37969]]

mailpiece, followed by the 1-digit verifier character ``9.'' Barcodes 
prepared under these symbologies MUST NOT include the prefix ``420.''

1.4 Technical Specifications

    UCC/EAN Code 128 barcodes must meet the technical specifications in 
the ``UCC/EAN-128 Application Identifier Standard,'' which can be 
obtained from Uniform Code Council, Inc. and the specifications in 2.0. 
The UCC specifications can be obtained from: UNIFORM CODE COUNCIL, INC, 
8163 OLD YANKEE RD STE J, DAYTON OH 45458-1839
    USS Code I 2/5, USS Code 39, and USS Code 128 barcodes must meet 
the technical specifications in Uniform Symbology Specification (USS) 
documents USS-I 2/5, USS-39, and USS-128, respectively, and the 
specifications in 2.0. The USS Code specifications are available from: 
AUTOMATIC IDENTIFICATION MANUFACTURERS (AIM), 634 ALPHA DR, PITTSBURGH 
PA 15238-2802, www.aimusa.org

1.5  One Postal Routing Barcode.

    A mailer may include more than one barcode on a mailpiece provided 
there is only one barcode that is prepared under the postal routing 
code structure. That is, a mailpiece must contain only one barcode 
encoded with a 5-digit numeric code followed by the character ``9'' or 
encoded with ``420'' followed by a 5-digit or 9-digit numeric code.
2.0  BARCODE CHARACTERISTICS

2.1  Dimensions

    The preferred range of widths of narrow bars and spaces is 0.015 
inch to 0.017 inch. The width of the narrow bars or spaces must be at 
least 0.013 inch but no more than 0.021 inch. All bars must be at least 
0.75 inch high. The wide/narrow bar width ratio for Code I 2/5 and Code 
39 must be at least 2.5 to 1.

2.2  Reflectance

    When measured in the red spectral range between 630 nanometers and 
675 nanometers, the minimum white bar (space) reflectance (Rs) must be 
greater than 50%, and the maximum bar reflectance (Rb) must be less 
than 25%. The minimum print reflectance difference (Rs-Rb) is 40%. 
Reflectance must be measured with a USPS-specified reflectance meter or 
barcode verifier.

2.3  Quality

    All barcodes in each mailing must measure American National 
Standards Institute (ANSI) grade C or above. At least 70% of the 
barcodes in each mailing must measure ANSI grade A or B. For all 
printing processes, it is strongly recommended that the symbols be 
tested to ensure that they meet specification requirements. Information 
concerning ANSI guidelines X3.182-1990 may be obtained from: AMERICAN 
STANDARDS INSTITUTE INC, 11 W 42ND ST, NEW YORK NY 10036-8002, (212) 
642-4900

2.4  Substrate Material

    All barcode symbols must be printed on substrate material that 
preserves the optical specification as described in the AIM-USA Uniform 
Symbology Specification documents. Typically, white label stock 
commonly used for barcode generation is suitable, providing it is not 
glossy (causing mirror-like [specular] reflection) nor prone to 
smearing or smudging.
3.0  BARCODE LOCATION

3.1  General Standards

    The address and barcode must be on the side of the mailpiece with 
the largest surface area, except that the address and barcode must be 
on the top surface of the mailpiece when its shape requires specific 
orientation for stability during automated processing. The barcode 
should be placed immediately adjacent to the address and at least 1 
inch from the edge of the mailpiece. The delivery address or barcode 
may be printed on an attachment or on an enclosure in a window 
envelope, subject to the reflectance standards in 2.2.

3.2  Barcode Clear Zone

    The barcode must be located as specified in 3.1. No printing may 
appear in an area \1/8\ inch above and below the barcode regardless of 
location. A minimum clear zone equal to 10 times the average measured 
narrow element (bars or space) width must be maintained to the left and 
right of the barcode.
4.0  BARCODE CONTENT

4.1  Human-Readable Barcode Information

    If the barcode is printed on the same label as the mailing address, 
and in close proximity to that address, the human-readable equivalent 
of the ZIP Code or ZIP+4 code encoded in the barcode may be omitted. If 
the barcode is printed on a separate label from the mailing address, 
the human-readable equivalent of the 5-digit ZIP Code or ZIP+4 code 
encoded in the barcode (i.e., omitting the existing ``420'' Application 
Identifier for UCC/EAN 128 and omitting the existing ``9'' verifier 
character for the other three barcode symbologies) must be printed 
between \1/8\ inch and \1/2\ inch below the barcode preceded by the 
word ``ZIP'' in 10 point or larger bold sans serif type. In addition, 
the location of the word ``ZIP'' may be alternatively placed no less 
than 10 time the average narrow bar or space element width and not more 
than \1/2\ inch to the left of the barcode, in 12 point or larger bold 
sans serif type.
* * * * *

D  Deposit, Collection, and Delivery

D000  Basic Information

D010  Pickup Service

1.0  BASIC STANDARDS

1.1  Availability

[Amend 1.1b to delete the term ``single-piece rate'' to read as 
follows:]
    Subject to the standards in D010, pickup service is available from 
designated post offices for:
* * * * *
    b. Priority Mail.
* * * * *

1.2  Not Available

[Amend 1.2c to include all destination entry rate pieces as follows:]
    Pickup service is not available for pieces:
* * * * *
    c. Claimed at the Parcel Post DBMC, DSCF, or DDU destination entry 
rates, or claiming the Parcel Post OBMC Presort discount.
* * * * *

D600  Standard Mail

* * * * *
2.0  MAIL DEPOSIT
[Amend the heading and contents of 2.1 to read as follows:]

2.1  Single-Piece Standard Mail (B) Rates

    Single-piece rate Standard Mail (B) must be deposited at a time and 
place specified by the mailing post office postmaster. Metered mail 
must be deposited in locations under the jurisdiction of the licensing 
post office, except as permitted in D072. Permit imprint mail must be 
presented at the post office under P040 or P700. Precanceled stamp mail 
must be presented at the post office under P023.

E  Eligibility

E000  Special Eligibility Standards

* * * * *

E060  Official Mail (Penalty)

* * * * *

[[Page 37970]]

5.0  SERVICES, CLASSES, RATES, PREPARATION, AND DETENTION
* * * * *

5.3  Basic Preparation

[Revise 5.3d to incorporate the new 13-ounce weight limit for First-
Class Mail as follows:]
    Penalty mail must:
* * * * *
    d. Be endorsed for class or rate except for single-piece rate 
First-Class Mail not exceeding 13 ounces and single-piece rate Parcel 
Post. All mail with penalty mail stamps, other than First-Class Mail 
weighing 13 ounces or less, must be marked to show the class at which 
it is mailed.
* * * * *
12.0  PENALTY MERCHANDISE RETURN SERVICE

12.1  Description

[Amend 12.1 by inserting ``(B)'' and by removing ``Single-Piece 
Standard Mail'' to read as follows:]
    Merchandise return service allows a merchandise return permit 
holder to authorize individuals and organizations to send single-piece 
First-Class Mail (including Priority Mail) and single-piece Standard 
Mail (B) (Parcel Post, Special Standard Mail, and Bound Printed Matter) 
to the permit holder. The permit holder pays the return postage and 
fees.
* * * * *

E 100  First-Class Mail

E110  Basic Standards

* * * * *
4.0  FEES

4.1  Presort Mailing

[Amend the first sentence of 4.1 to delete the reference to Presorted 
Priority Mail to read as follows:]
    A First-Class Mail presort mailing fee must be paid once each 12-
month period at each office of mailing by any person or organization 
entering mailings at automation or Presorted First-Class Mail rates. 
Payment of one fee allows a mailer to enter mail at both those rates. 
Persons or organizations paying this fee may enter mail of their 
clients as well as their own mail. 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.
* * * * *

E120 Priority Mail

1.0  BASIC STANDARDS

1.1 Description

[Revise 1.1 to reflect the new maximum weight of First-Class Mail to 
read as follows:]
    Priority Mail is First-Class Mail weighing more than 13 ounces and, 
at the mailer's option, any other mail matter (including regular First-
Class Mail) weighing 13 ounces or less. Priority Mail rates are based 
on zone and/or weight.
* * * * *
[Delete current 1.4, renumber current 2.2 as new 1.4 to read as 
follows:]

1.4 Marking

    The marking ``Priority'' or ``Priority Mail'' must be placed 
prominently on the address side of each piece of Priority Mail.
[Amend 2.0 to read as follows:]
2.0  RATES

2.1  Application

    Priority Mail rates apply to pieces meeting the standards in 1.0.

2.2  Flat Rate Envelope

    Any amount of material that can be mailed in the special flat rate 
envelope available from the USPS is subject to the 2-pound Priority 
Mail rate, regardless of the weight of the material placed in the 
envelope.

2.3  Balloon Rate

    Items weighing less than 15 pounds but measuring more than 84 
inches in combined length and girth are charged a minimum rate equal to 
that for a 15-pound parcel for the zone to which it is addressed.

2.4  Keys and Identification Devices

    Keys and identification devices (identification cards or uncovered 
identification tags) that weigh more than 13 ounces but not more than 2 
pounds are returned at the 2-pound Priority Mail rate plus a $0.30 fee 
if they bear, contain, or have securely attached the name and complete 
address of a person, organization, or concern, with instructions to 
return the piece to that address and a statement guaranteeing payment 
of postage due on delivery.
[Delete current 3.0 pertaining to Presorted Priority Mail.]

E130  Nonautomation Rates

1.0  BASIC STANDARDS

1.1  All Pieces

[Revise 1.1 to reflect the new maximum weight for First-Class Mail to 
read as follows:]
    All pieces of nonautomation First-Class Mail must:
    a. Meet the basic standards for First-Class Mail in E110.
    b. Weigh 13 ounces or less.
    c. Bear a delivery address.
    d. Meet the applicable documentation and postage payment standards 
in P012, P013, and P100.
* * * * *
[Delete 1.3.]
2.0  SINGLE-PIECE RATE
[Revise 2.1, renumber 2.2 as 2.3, and insert new 2.2 to read as 
follows:]

2.1  Rate Application

    The single-piece rates for First-Class Mail are applied as follows:
    a. The card rate applies to a card meeting the applicable standards 
in C100 that is not eligible for or claimed at the Presorted rate, an 
automation rate, or a qualified business reply mail (QBRM) rate.
    b. The letter rate applies to any other First-Class Mail (letter, 
flat, and parcel) weighing 13 ounces or less that is not eligible for 
and claimed at the card rate, the Presorted rate, an automation rate, a 
qualified business reply mail (QBRM) rate, or required to be paid at a 
rate for keys and identification devices.

2.2  Keys and Identification Devices

    Keys and identification devices (identification cards or uncovered 
identification tags) that weigh not more than 13 ounces are mailed at 
the applicable single-piece letter rate, plus a $0.30 fee, and if 
applicable, the nonstandard surcharge. The keys and identification 
devices must bear, contain, or have securely attached, the name and 
complete address of a person, organization, or concern, with 
instructions to return the piece to that address and a statement 
guaranteeing payment of postage due on delivery.
* * * * *
[Insert new 4.0 to read as follows:]
4.0  NONSTANDARD SURCHARGE
    Single-piece (including keys and identification devices) and 
Presorted First-Class Mail are subject to the applicable nonstandard 
surcharge in R100 if they are not mailed at the card rate, weigh 1 
ounce or less, and meet the definition of nonstandard mail in C100.
* * * * *
[Insert new E150 to read as follows:]

[[Page 37971]]

E150  Qualified Business Reply Mail (QBRM) Rates

1.0  BASIC STANDARDS

1.1  Description

    Qualified Business Reply Mail (QBRM) is First-Class Mail that:
    a. Is letter-size and is prepared to meet the automation 
compatibility requirements in C810 (except 7.1).
    b. Meets all the Business Reply Mail (BRM) standards in S922.
    c. Has postage and BRM per-piece fees paid through a business reply 
mail advance deposit account.
    d. Is authorized to mail at QBRM rates and fees under 2.0. During 
the authorization process, the mailer is assigned a unique ZIP+4 code 
for each rate category of QBRM to be returned under the system (one for 
card-rate pieces, one for letter-size pieces weighing 1 ounce or less, 
and one for letter-size pieces weighing over 1 ounce up to and 
including 2 ounces).
    e. Bears the unique ZIP+4 code assigned during the application 
process in the address of each piece distributed. The ZIP+4 code on 
each piece must be the proper one assigned to the rate category of the 
piece on its return. The ZIP+4 codes assigned for this program must be 
used only on the organization's appropriate QBRM pieces.
    f. Bears the correct barcode that corresponds to the unique ZIP+4 
code in the address on each piece distributed. The barcode must be 
correctly prepared under C840 and S922.5.
    g. Bears a properly prepared facing identification mark (FIM) C on 
each piece distributed.
2.0  AUTHORIZATION
    To participate in QBRM, the mailer must submit a written request to 
open a QBRM account to the postmaster or business mail entry manager at 
the post office to which the pieces are to be returned. If the mailer's 
request is approved, the USPS issues the mailer an authorization letter 
and instructions on how to prepare BRM, including the ZIP+4 codes to be 
used. The mailer must have a valid BRM permit and pay the annual 
accounting fee to participate in QBRM. Preproduction samples, if 
provided with the request, are reviewed by the USPS for compliance with 
the relevant standards. Any BRM approved under the former Business 
Reply Mail Accounting System need not make reapplication to qualify for 
QBRM.
3.0  RATES AND FEES

3.1  Rates

    The single-piece rates for QBRM First-Class Mail are applied to 
each returned piece as follows:
    a. The QBRM rate for cards in R100 applies to a card meeting the 
applicable standards in 1.0 and C100.
    b. The QBRM rate for letters in R100 applies to a letter meeting 
the applicable standards in 1.0 that is not eligible for and claimed at 
the QBRM rate for cards.

3.2  Fees

    The following fees apply to QBRM First-Class Mail:
    a. The annual BRM permit fee in S922 and R900.
    b. The annual BRM accounting fee in S922 and R900.
    c. The QBRM fee in R900 for each returned piece.

E200  Periodicals

E210  Basic Standards

E211  All Periodicals

* * * * *
14.0  BASIC RATE ELIGIBILITY
* * * * *

14.4  Copies Mailed by Public

[Amend 14.4 by adding ``Priority'' and ``(B)'' to read as follows:]
    The applicable single-piece First-Class, Priority, or Standard Mail 
(B) rate is charged on copies of publications mailed by the general 
public (i.e., other than publishers or registered news agents) and on 
copies returned to publishers or news agents.
* * * * *

E230  Nonautomation Rates

1.0  BASIC INFORMATION
* * * * *

1.3  ZIP Code Accuracy

[In the first sentence, change ``3/5'' to ``5-digit, 3-digit,'' to read 
as follows:]
    All 5-digit ZIP Codes in addresses on pieces claimed at the 5-
digit, 3-digit, or basic rates must be verified and corrected within 12 
months before the mailing date by a USPS-approved method. * * *
* * * * *
[Replace current 3.0 through 5.0 with new 3.0 through 5.0 to read as 
follows:]
3.0  5-DIGIT RATES
    Subject to M200, 5-digit rates apply to:
    a. Letter-size pieces in 5-digit packages of six or more pieces 
each, placed in 5-digit trays.
    b. Flat-size pieces in 5-digit packages of six or more pieces each, 
placed in 5-digit sacks or palletized under M045.
4.0 3-DIGIT RATES
    Subject to M200, 3-digit rates apply to:
    a. Letter-size pieces in 5-digit and 3-digit packages of six or 
more pieces each, placed in 3-digit trays.
    b. Flat-size pieces in 5-digit and 3-digit packages of six or more 
pieces each, placed in 3-digit sacks or palletized under M045.
5.0 BASIC RATES
    Basic rates apply to pieces prepared under M200 that are not 
claimed at carrier route, 5-digit, or 3-digit rates.
6.0  WALK-SEQUENCE DISCOUNTS
* * * * *

6.4  Density Standards

[Revise 6.4b, renumber 6.4c through 6.4d as 6.4d through 6.4e, insert 
new 6.4c, and revise renumbered 6.4e to read as follows:]
    Walk-sequence rate mailings are subject to these density standards:
* * * * *
    b. Except under 6.4c, at least 125 walk-sequenced addressed pieces 
must be prepared for each carrier route receiving mail claimed at the 
high density rate. Mail for carrier routes of 124 or fewer possible 
deliveries can qualify for the high density rate if there are at least 
125 addressed pieces for the route, or if pieces are addressed to every 
possible delivery on the route. This mail may also qualify for the 
saturation rate, subject to 6.4e. In-County rate pieces may also 
qualify for high density rates under 6.4c.
    c. Mail may qualify for In-County high density rates when there are 
addressed pieces for a minimum of 25% of the total active possible 
deliveries on a carrier route. If a route contains addresses both 
within and outside the county, the number of pieces addressed to the 
entire carrier route will be used to determine if the 25% requirement 
has been met. However, for such carrier routes meeting the 25% 
requirement, only the pieces for that carrier route that are addressed 
to addresses within the county in which the original entry is located 
may qualify for the In-County high density rates.
* * * * *
    e. More than one addressed piece per delivery address may be 
included in a high density rate mailing and may be counted for the 
density standard, in 6.4b, for the high density rate. Only one piece 
per delivery address may be counted toward the density standards

[[Page 37972]]

for high density in 6.4c and for the saturation rate in 6.4d.
7.0  COMBINING MULTIPLE PUBLICATIONS OR EDITIONS
* * * * *

7.4  Documentation Elements

[Amend the first sentence of 7.4 to read as follows:]
    Presort documentation required under P012 also must show the total 
number of addressed pieces and copies of each publication or edition 
mailed to each carrier route, 5-digit, and 3-digit destination. * * *
* * * * *

E240  Automation Rates

* * * * *
2.0  RATE APPLICATION
[Replace current 2.1 through 2.3 with new 2.1 through 2.3 to read as 
follows:]

2.1  5-Digit Rates

    Subject to M200, 5-digit automation rates apply to:
    a. Letters. 5-digit rates apply to groups of 150 or more pieces to 
the same 5-digit or 5-digit scheme placed in a 5-digit or 5-digit 
scheme tray or trays prepared under M810. (Preparation to qualify for 
the 5-digit rate is optional, and if performed, need not be done for 
all 5-digit or 5-digit scheme destinations.)
    b. Flats. 5-digit rates apply to pieces in 5-digit packages of six 
or more pieces each, prepared under M820 or M045.

2.2  3-Digit Rates

    Subject to M200, 3-digit automation rates apply to:
    a. Letters. 3-digit rates apply to groups of 150 or more pieces to 
the same 3-digit or 3-digit scheme placed in a 3-digit/scheme tray or 
trays under M810.
    b. Flats. 3-digit rates apply to pieces in 3-digit packages of six 
or more pieces each, prepared under M820 or M045.

2.3  Basic Rates

    Subject to M200, basic automation rates apply to:
    a. Letters. Basic rates apply to pieces prepared under M810 that 
are not claimed at 5-digit or 3-digit rates.
    b. Flats. Basic rates apply to pieces prepared under M820 or M045 
that are not claimed at 5-digit or 3-digit rates.
* * * * *

E600  Standard Mail

E610  Basic Standards

E611  All Standard Mail

1.0  BASIC INFORMATION:
* * * * *
1.8  Documentation
[Amend the reference to single-piece rate mail to specify single-piece 
Standard Mail (B) as follows:]
    A postage statement, completed and signed by the mailer, using the 
correct USPS form or an approved facsimile, must be submitted with each 
mailing except for single-piece rate Standard Mail (B) mailings in 
which the correct postage is affixed to each piece. Additional 
supporting documentation may be required by the standards for the rate 
claimed or postage payment method used.

E612  Additional Standards for Standard Mail (A)

* * * * *
[Amend the heading of 4.0 by removing ``BULK'' to read as follows:]
4.0  RATES

4.1  General Information

[Revise the section numbers and the names of nonautomation rates and 
remove information about special services to read as follows:]
    All Standard Mail (A) rates are bulk rates (sometimes referred to 
as presort rates). Bulk rates apply to mailings meeting the basic 
standards in E611 and the corresponding standards for Enhanced Carrier 
Route, automation, Presorted, and destination entry in E620, E640, and 
E650 as appropriate for the rate claimed. Nonprofit rates may be used 
only by organizations authorized by the USPS under E670. Not all 
processing categories qualify for every bulk rate.

4.2  Minimum Per-Piece Rates

[In the first sentence, change ``nonautomation'' to ``Presorted'' and 
amend the weight breakpoints for the minimum per-piece rates 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 Presorted 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 0.2069 pound rounded 
(3.3103 ounces rounded); and Nonprofit Presorted and automation rate 
pieces weighing no more than 0.2055 pound rounded (3.2873 ounces 
rounded). * * *
* * * * *

4.6  Exception

[Amend 4.6 by revising the second sentence to read as follows:]
    When the postage computed at the bulk Standard Mail (A) rates is 
higher than a Standard Mail (B) rate for which the matter and the 
mailing could qualify except for its weight, the Standard Mail (B) rate 
may be paid without adding needless weight. When the Standard Mail (B) 
rate is paid, the pieces must bear the rate marking appropriate for the 
Standard Mail (B) rate at which postage is paid. All other standards 
for bulk Standard Mail (A) apply, including mail preparation.
* * * * *

4.9  Preparation

[Amend 4.9b to read as follows:]
    Each bulk rate mailing is subject to these general standards:
* * * * *
    b. Each mailing must contain at least 200 pieces or 50 pounds of 
pieces. See E620.1.2 for volume requirement eligibility unique to 
Presorted Standard rate mailings. Other volume standards also can 
apply, based on the rate claimed.
* * * * *
[Add new 4.10 as follows:]

4.10  Special Services

    Bulk rate Standard Mail (A) may not use certified, collect on 
delivery (COD), insurance, registered, return receipt, return receipt 
for merchandise, or special handling.
* * * * *
[Revise the title of E620. Delete current 1.0. Move current E620.2.0 
through 5.7 into E630. Renumber current E630.1.0 through E630.2.9 as 
E620.1.0 through E620.2.9. Renumber E620.1.2 as E620.1.5; renumber 
E620.1.3 as E620.1.4; add new E620.1.2,E620.1.3, E620.1.6, and 
E620.2.10; and revise to read as follows:]

E620  Nonautomation Standard Mail (A) Rates

1.0  PRESORTED REGULAR AND NONPROFIT RATES

1.1  Basic Standards

    All pieces in a Presorted Regular or Presorted Nonprofit Standard 
Mail (A) mailing must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Except as provided in 1.2, be part of a single mailing of at 
least 200 pieces or 50 pounds of pieces qualifying for Presorted 
Standard Mail (A). Regular and Nonprofit mailings must meet separate 
minimum volumes.
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code, unless an alternative address format is used subject to 
A040.

[[Page 37973]]

Upgradable pieces are subject to additional standards in M610. Pieces 
prepared with detached address labels are subject to additional 
standards in A060.
    d. Be marked, sorted, and documented as specified in M610.

1.2  Residual Volume Requirement

    Pieces in an Enhanced Carrier Route rate mailing that has 
separately met a 200 piece or 50 pound minimum quantity requirement may 
be counted toward the minimum quantity requirement for a Presorted rate 
mailing, provided that the Enhanced Carrier Route rate mailing and the 
Presorted rate mailing are part of the same mailing job and are 
reported on the same postage statement. Likewise, pieces in an 
automation rate mailing that has separately met a 200 piece or 50 pound 
minimum quantity requirement may be counted toward the minimum quantity 
requirement for a Presorted rate mailing, provided that the automation 
rate mailing and the Presorted mailing are part of the same mailing job 
and are reported on the same postage statement. Pieces mailed at 
Presorted Standard Mail (A) rates must not be counted toward the 
minimum volume requirements for an Enhanced Carrier Route rate or an 
automation rate mailing.

1.3  Residual Mail Subject to First-Class or Priority Mail Rates

    Pieces prepared as Standard Mail (A) (i.e., bear Standard Mail (A) 
rate markings, ancillary service markings, etc.) that do not qualify 
for Enhanced Carrier Route, automation, or Presorted Standard Mail (A) 
rates are subject to the single-piece First-Class or Priority Mail 
rates as applicable for the weight of the mailpiece. Metered pieces 
weighing over 13 ounces, but less than 16 ounces that do not qualify 
for Standard Mail (A) rates, and any mailpieces that do not qualify for 
Standard Mail (A) rates for which First-Class or Priority Mail service 
is desired, must be re-enveloped or otherwise prepared so that they do 
not bear Standard Mail (A) markings, endorsements and ACS codes, and 
must bear the proper First-Class Mail or Priority Mail rate markings, 
ancillary service endorsements, and ACS codes. Mailers who have pieces 
(other than metered pieces weighing over 13 ounces, but less than 16 
ounces) that do not qualify for Standard Mail (A) rates, but that are 
prepared as Standard Mail (A), and who do not desire to receive First-
Class Mail or Priority Mail service for those pieces, may enter their 
mailpieces ``as is'' (i.e., bearing the Standard Mail (A) markings and 
endorsements), provided the requirements in P100 are met.

1.4  ZIP Code Accuracy

    All 5-digit ZIP Codes included in addresses on pieces claimed at 
regular Presorted and Nonprofit Presorted rates must be verified and 
corrected within 12 months before the mailing date, using a USPS-
approved method. The mailer must certify that this standard has been 
met when the corresponding mail is presented to the USPS. This standard 
applies to each address individually, not to a specific list of 
mailing. An address meeting this standard may be used in mailings at 
any other rates to which the standard applies during the 12-month 
period after its most recent update.

1.5  Presorted Rates

    Presorted Regular or Nonprofit Standard Mail (\3/5\ and basic) 
rates apply to Regular or Nonprofit Standard Mail letters, flats, and 
machinable and irregular parcels weighing less than 16 ounces, that are 
prepared under M610 or palletized under M045. Basic rates apply to 
pieces that do not meet the standards for the \3/5\ rates described 
below. Basic rate and \3/5\ rate pieces prepared as part of the same 
mailing are subject to a single minimum volume standard. Pieces that do 
not qualify for the \3/5\ rate must be paid at the basic rate and 
prepared accordingly. Pieces may qualify for the \3/5\ rate if they are 
presented:
    a. In quantities of 150 or more letter-size pieces for a single 3-
digit area, prepared in 5-digit or 3-digit packages of 10 or more 
pieces each and placed in 5-digit or 3-digit trays.
    b. In quantities of 150 or more upgradable letter-size pieces (as 
defined in M610) for a single 3-digit area and placed in 5-digit or 3-
digit trays.
    c. In a 5-digit or 3-digit package of 10 or more flat-size pieces 
and placed in a 5-digit or 3-digit sack containing at least 125 pieces 
or 15 pounds of pieces.
    d. In a 5-digit or 3-digit package of 10 or more flat-size pieces 
palletized under M045.
    e. In a 5-digit, destination ASF (if required), or destination BMC 
sack containing at least 10 pounds of machinable parcels. (The \3/5\ 
rates are available only if all possible 5-digit sacks are prepared.)
    f. On a 5-digit, destination ASF (if required), or destination BMC 
pallet of machinable parcels. (The \3/5\ rates are available only if 
all possible 5-digit pallets are prepared.)
    g. In a 5-digit or 3-digit sack of irregular parcels containing at 
least 125 pieces or 15 pounds of pieces.

1.6  Residual Shape (Parcel) Surcharge

    Presorted Standard Mail that is prepared as a parcel, or is not 
letter-size or flat-size as defined in C050, is subject to the residual 
shape surcharge.
2.0  ENHANCED CARRIER ROUTE RATES

2.1  All Pieces

    All pieces in an Enhanced Carrier Route Standard Mail mailing 
(letters, flats, or irregular parcels, including merchandise samples 
distributed with detached address labels) must:
    a. Meet the basic standards for Standard Mail in E611 and E612.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail, except that 
automation basic carrier route rate pieces are subject to a separate 
200-piece/50-pound minimum volume standard and may not be included in 
the same mailing as other Enhanced Carrier Route mail. Regular and 
Nonprofit mailings must meet separate minimum volumes.
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized) or M620.

2.2  Flats and Merchandise Samples

    Enhanced Carrier Route rate mail may not be more than 11-\3/4\ 
inches high, 14 inches long, or \3/4\-inch thick. Merchandise samples 
with detached address labels may exceed these dimensions if the labels 
meet the standards in A060.

2.3  Preparation

    Preparation to qualify for any of the Enhanced Carrier Route rates 
is optional and need not be performed for all carrier routes in a 5-
digit area. An Enhanced Carrier Route mailing may include pieces at 
basic, high-density, and saturation Enhanced Carrier Route rates. 
Automation basic carrier route rate pieces must be prepared as a 
separate mailing, subject to the eligibility standards in E640.

2.4  Carrier Route Information

    Except for mailings prepared with a simplified address under A040, 
carrier route codes must be applied to mailings using CASS-certified 
software and the current USPS Carrier Route Information System (CRIS) 
scheme, hard copy CRIS files, or another AIS product containing carrier 
route information, subject to A930 and A950. Carrier route information 
must be updated within 90 days before the mailing date.

[[Page 37974]]

2.5  Sequencing

    Basic carrier route rate mail must be prepared either in carrier 
walk sequence or in line-of-travel (LOT) sequence according to LOT 
schemes prescribed by the USPS (see M050). High-density and saturation 
rate mailings must be prepared in carrier walk sequence according to 
schemes prescribed by the USPS.

2.6  Addressing

    Saturation rate mail may be prepared with detached address labels, 
subject to A060, or with an alternative addressing format, subject to 
A040. High-density pieces must have a complete delivery address or an 
address in occupant or exceptional format. Saturation pieces addressed 
for delivery on a city route must have a complete delivery address or 
an address in occupant or exceptional format, except that official mail 
from certain government entities also may use the simplified format. 
Saturation pieces for delivery on rural or highway contract routes, or 
through general delivery or a post office box, must have a complete 
delivery address or an alternative address format.

2.7  Density

    High-density and saturation rate mailings are subject to these 
density standards:
    a. There is no minimum volume per 5-digit ZIP Code delivery area. 
Pieces need not be sent to all carrier routes within a 5-digit delivery 
area.
    b. For the high-density rate, at least 125 pieces must be prepared 
for each carrier route for which that discount is claimed, except that 
fewer pieces may be prepared and the high-density rate may be claimed 
for carrier routes of 124 or fewer possible deliveries if a piece is 
addressed to every possible delivery on the route. Multiple pieces per 
delivery address can count toward this density standard.
    c. For the saturation rate, pieces must be addressed either to 90% 
or more of the active residential addresses or to 75% or more of the 
total number of active possible delivery addresses, whichever is less, 
on each carrier route receiving this mail, except that mail addressed 
in the simplified address format must meet the 100% coverage standard 
in A040. Multiple pieces per delivery address do not count toward this 
delivery standard. Sacks with fewer than 125 pieces and less than 15 
pounds of pieces may be prepared to a carrier route when the saturation 
rate is claimed for the contents and the applicable density standard is 
met.

2.8  Basic Rates

    Basic (nonautomation) carrier route rates apply to each piece that 
is sorted under M620 into the corresponding qualifying groups:
    a. Letter-size pieces in a full carrier route tray, or in a carrier 
route package of 10 or more pieces placed in a 5-digit carrier routes 
or 3-digit carrier routes tray.
    b. Flat-size pieces in a carrier route package of 10 or more pieces 
palletized under M045, or placed in a carrier route sack containing at 
least 125 pieces or 15 pounds of pieces or in a 5-digit carrier routes 
sack.
    c. Irregular parcels (merchandise samples prepared with detached 
address labels under A060) in a carrier route sack or in a carrier 
route carton(s) containing a total of 125 pieces or 15 pounds of 
pieces, or in a 5-digit carrier routes sack or carton. (DALs must be in 
carrier route packages of 10 or more pieces and prepared under A060.)

2.9  High-Density and Saturation

    High-density and saturation rates apply to pieces qualified for the 
basic rates that also meet the applicable addressing and density 
standards in 2.6 and 2.7.

2.10  Residual Shape (Parcel) Surcharge

    Enhanced Carrier Route mail that is prepared as a parcel, or is not 
letter-size or flat-size as defined in C050, is subject to the residual 
shape surcharge.

[Revise the title of E630 as follows:]

E630  Standard Mail (B)

[Delete current 630.1 through 630.2. Insert new 630.1 through 630.5.9, 
which combines former E620.2 through E620.5 with former E630.3 and 
E630.4 to reorganize and separate standards for Standard Mail (A) from 
those for Standard Mail (B) and to include new Standard Mail (B) rate 
categories to read as follows:]
1.0  PARCEL POST

1.1  Basic Standards

    Parcel Post is Standard Mail weighing 16 ounces or more that is not 
mailed as Bound Printed Matter, Special Standard Mail, or Library Mail. 
Any Standard Mail (B) matter may be mailed at Parcel Post rates, 
subject to the basic standards in E611 and E613.

1.2  Enclosures

    Parcel Post may contain any printed matter mailable as Standard 
Mail (A), in addition to the enclosures and additions listed in E611.

1.3  Rate Eligibility

    There are five Parcel Post rate categories: Intra-BMC, Inter-BMC, 
destination bulk mail center (DBMC), destination sectional center 
facility (DSCF), and destination delivery unit (DDU). Intra-BMC, Inter-
BMC, and DBMC Parcel Post rates are calculated based on the zone to 
which the parcel is addressed and the weight of the parcel. DSCF and 
DDU rates are calculated based on the weight of the parcel. Generally, 
Intra-BMC rates apply to parcels mailed and delivered within the same 
BMC service area and Inter-BMC rates apply to parcels mailed in one BMC 
service area and delivered in a different BMC service area. Specific 
standards for Inter-BMC and Intra-BMC rates and applicable discounts 
are described below. Generally, to qualify for destination entry rates 
(DBMC, DSCF, or DDU), mailers must enter their parcels at the 
destination BMC, SCF, or delivery unit postal facility that will 
process or deliver the parcels (see additional requirements in E652). 
Additional requirements for Parcel Post rates and discounts (other than 
destination entry rates) are set forth below.
    a. Intra-BMC rates apply to all Parcel Post originating and 
destining in the service area of the same BMC or ASF. Intra-BMC rates 
also apply to Parcel Post originating and destining in the same state 
for Alaska and Hawaii and in the same territory for Puerto Rico. See 
Exhibit 1.3.
    b. Inter-BMC rates for machinable parcels apply to all Parcel Post 
mail that weighs 35 pounds or less; is machinable; originates in the 
service area of a BMC/ASF, or in Alaska, Hawaii, or Puerto Rico, and 
destinates outside that area; and is not eligible for destination entry 
rates.
    c. Inter-BMC rates for nonmachinable Parcel Post include the 
nonmachinable surcharge and apply to all inter-BMC/ASF Parcel Post mail 
that weighs more than 35 pounds or otherwise is nonmachinable as 
defined in 1.4; originates in the service area of a BMC/ASF, or in 
Alaska, Hawaii, or Puerto Rico, and destinates outside that area; and 
is not eligible for destination entry rates.
    d. Parcel Post for which OBMC Presort, BMC Presort, and barcoded 
discounts are claimed, and parcel post which is mailed at a destination 
entry rate (DBMC, DSCF, DDU (E652)), must be part of a mailing of 50 or 
more Parcel Post rate pieces. Eligibility for one of those rates or 
discounts does not require a separate 50 qualifying pieces per rate or 
per discount. Eligibility for more than

[[Page 37975]]

one of those rates or discounts in the same Parcel Post mailing is 
possible, provided there are a total of at least 50 pieces of mail 
qualifying for any or all Parcel Post rates in the mailing and all 
other preparation and eligibility requirements for the rates or 
discounts are met.
    e. The bulk mail center (BMC) Presort per-piece discount applies to 
pieces of inter-BMC Parcel Post sorted to BMC destinations under L601 
for machinable pieces and sorted to BMC and ASF destinations for 
nonmachinable pieces under L605. To qualify, machinable pieces must be 
placed in pallet boxes on pallets and nonmachinable pieces must be 
placed directly on pallets under M041 and M045. The mail must be 
entered at a postal facility that is not a BMC and be part of a mailing 
containing 50 or more Parcel Post rate pieces.
    f. The origin bulk mail center presort (OBMC Presort) per-piece 
discount applies to pieces of inter-BMC Parcel Post sorted to BMC 
destinations under L601 for machinable pieces and sorted to BMC and ASF 
destinations for nonmachinable pieces under L605. To qualify, 
machinable pieces must be placed in pallet boxes on pallets and 
nonmachinable pieces must be placed directly on pallets under M041 and 
M045. The mail must be entered at a BMC listed in L601 and be part of a 
mailing containing 50 or more Parcel Post rate pieces.
    g. The barcoded discount applies to Parcel Post machinable parcels 
(C050) that each bear a correct, readable barcode under C850 for the 
ZIP Code of the delivery address; are part of a mailing of 50 or more 
Parcel Post rate pieces; are not mailed at the DSCF or DDU rates; and 
if claiming the DBMC rates, are not entered at an ASF. An exception is 
that properly prepared machinable pieces of DBMC rate mail entered at 
the Phoenix, AZ, ASF may claim the barcoded discount because that 
facility uses barcode scanning equipment.
    h. Pieces measuring over 108 inches but not more than 130 inches in 
combined length and girth, are mailable at the applicable oversized 
Parcel Post rate.
    i. Pieces measuring over 84 inches, but not more than 108 inches in 
combined length and girth and weighing less than 15 pounds are subject 
to the rate equal to that of a 15-pound parcel for the zone to which 
the parcel is addressed.

Exhibit 1.3  BMC/ASF Service Areas

[Renumber and insert former Exhibit E620.2.4 as Exhibit E630.1.3.]

1.4  Nonmachinable Surcharge

    The nonmachinable surcharge applies only to the items listed in 
1.4a through 1.4i if mailed at the Inter-BMC/ASF Parcel Post rates and 
no special handling fee is paid. The nonmachinable surcharge applies to 
items within these categories:
    a. A parcel more than 34 inches long, 17 inches wide, 17 inches 
high, or weighing more than 35 pounds.
    b. A parcel containing more than 24 ounces of liquid in glass 
containers, or 1 gallon or more of liquid in metal or plastic 
containers.
    c. An insecurely wrapped or metal-banded parcel.
    d. A can (paint, etc.), roll, or tube, or wooden or metal box.
    e. A shrub or tree.
    f. A perishable, such as eggs.
    g. Books, printed matter, or business forms weighing more than 25 
pounds.
    h. A high-density parcel weighing more than 15 pounds and exerting 
more than 60 pounds per-square-foot pressure on its smallest side.
    i. A film case weighing more than 5 pounds or with strap-type 
closures, except any film case the USPS authorizes to be entered as a 
machinable parcel under C050 and to be identified by the words 
``Machinable in United States Postal Service Equipment,'' permanently 
attached as a nontransferable decal in the lower right corner of the 
case.

1.5  Fees

Renumber former E620.2.6 as E630.1.5 and revise to read as follows:]
    Parcel Post mail is subject to these fees, as applicable:
    a. The fee for mailing at destination BMC (DBMC), destination 
sectional center facility (DSCF), and destination delivery unit (DDU) 
Parcel Post rates must be paid once each 12-month period at each post 
office of mailing by or for any person or organization that mails at 
the destination entry rates, except as provided otherwise for plant-
verified drop shipments. All destination entry rates are covered under 
the payment of a single annual fee. 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 (R600).
    b. The Parcel Post pickup fee must be paid every time pickup 
service is provided, subject to the corresponding standards in D010.
2.0  BOUND PRINTED MATTER

2.1  Description and Rate Categories

[Renumber former E620.3.1 as E630.2.1 and revise to include new rate 
categories as follows:]
    Bound Printed Matter is Standard Mail weighing at least 1 pound but 
not more than 15 pounds and meeting the standards in E611, E613, and 
E630. Bound Printed Matter rates are based on zones and on the weight 
of the piece. The rate categories are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Bound 
Printed Matter not mailed at the presorted rate or carrier route rate.
    b. Presorted Rate. The presorted rate applies to Bound Printed 
Matter prepared in a mailing of at least 300 pieces, prepared and 
presorted as specified in M045 and M630.
    c. Carrier Route Rate. The carrier route rate applies to Bound 
Printed Matter prepared in a mailing of at least 300 pieces presorted 
to carrier routes, prepared and presorted as specified in M045 and 
M630.

2.2  Characteristics

[Renumber former E620.3.2 as E630.2.2.]
* * * * *

2.3  Combining Pieces

[Renumber former E620.3.3 as E630.2.3.]
* * * * *

2.4  Enclosures

[Renumber former E620.3.4 as E630.2.4.]
* * * * *
[Add new 2.5 to specify barcoded discount standards as follows:]

2.5  Barcoded Discount

    The barcoded discount applies to machinable parcels (C050) bearing 
a correct, readable barcode under C850 for the ZIP Code shown in the 
delivery address that are part of a mailing of at least 50 Bound 
Printed Matter pieces, and are mailed at the single-piece rates or, 
under the following conditions, mailed at the presorted rates. Except 
for 5-digit bedloaded bundles, presorted Bound Printed Matter that is 
prepared under the machinable parcel preparation standards in M045 and 
M630 is eligible for the barcoded discount. Bedloaded bundles of 
presorted Bound Printed Matter that are required to be prepared under 
the sortation standards for flats and irregular parcels are not 
eligible for barcoded discounts. Carrier route Bound Printed Matter is 
not eligible for the barcoded discount.

[Renumber E630.3.1 as 2.6 and revise to delete references to E620 to 
read as follows:]

[[Page 37976]]

2.6  Preparation for Presorted Rates

    Presorted Bound Printed Matter must meet the basic standards in 2.1 
through 2.5 and the applicable preparation standards in M630. Mailings 
may contain nonidentical-weight pieces only if the correct postage is 
affixed to each piece or if the RCSC serving the post office of mailing 
has authorized payment of postage by permit imprint under P710, P720, 
or P730 or M630.8. Each mailing must contain 300 or more pieces of 
presorted Bound Printed Matter. Insurance, special handling, and COD 
services may be used, but selective use of these services for 
individual parcels must be approved by the RCSC.
[Renumber former E630.3.2 as 2.7.]

2.7  Additional Standards for Carrier Route Rates

    Carrier route Bound Printed Matter is subject to these additional 
standards:
    a. Each mailing must contain 300 or more pieces sorted under M630 
into groups of at least 10 pieces, 20 pounds, or 1,000 cubic inches 
each for the same carrier route, rural route, highway contract route, 
post office box section, or general delivery unit.
    b. Residual pieces (not sorted as described in 2.7a) do not count 
toward the minimum specified in 2.7a, are ineligible for the carrier 
route Bound Printed matter rates, and must have postage paid at the 
appropriate presorted Bound Printed Matter rates. Residual pieces may 
be included in a carrier route Bound Printer Matter rate mailing and be 
endorsed ``Carrier Route Presort'' or ``CAR-RT SORT.'' The number of 
residual pieces to any single 5-digit ZIP Code area may not exceed 5% 
of the total qualifying carrier route pieces addressed to that 5-digit 
area. Residual pieces must be separated from the pieces that qualify 
for the carrier route rate and must be prepared under M630.
    c. Subject to A930, the mailer must apply carrier route codes to 
mailings using CASS-certified software and the current USPS Carrier 
Route Information System (CRIS) scheme or another AIS product 
containing carrier route information. The carrier route information 
must be updated within 90 days before the mailing date.
[Renumber former E620.4.0 as E630.3.0.]
3.0  SPECIAL STANDARD MAIL
[Renumber former E620.4.1 as E630.3.1 and add rate categories as 
follows:]

3.1  Qualification

    Special Standard Mail is Standard Mail matter meeting the standards 
in E611, E613, and those below. Special Standard Mail rates are based 
on the weight of the piece, without regard to zone. The rate categories 
are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Special 
Standard Mail not mailed at a 5-digit or BMC rate.
    b. Presorted 5-Digit Rate. The 5-digit rate applies to Presorted 
Special Standard Mail mailings of at least 500 pieces and meeting the 
other requirements of 4.0 and that are prepared and presorted to 5-
digit destination ZIP Codes as specified in M630 or M041 and M045.
    c. Presorted BMC Rate. The BMC rate applies to Presorted Special 
Standard Mail mailings of at least 500 pieces and meeting the other 
requirements of 4.0 and that are prepared and presorted to destination 
bulk mail centers as specified in M630 or M041 and M045.
[Renumber former E620.4.2 as E630.3.2.]

3.2  Qualified Items

* * * * *
[Renumber former E620.4.3 as E630.3.3.]

3.3  Loose Enclosures

* * * * *
[Renumber former E620.4.4 as E630.3.4.]

3.4  Enclosures in Books

* * * * *
[Insert current E630.4.0. Amend 4.3 by revising the second sentence and 
add new E630.4.7 to read as follows:]
4.0  PRESORTED SPECIAL STANDARD MAIL
* * * * *

4.3  One Presort Level

    A Presorted Special Standard Mail rate mailing receives only one 
level of presort rate. The mailer may, however, prepare two separate 
mailings in order to use both levels of presort rates and claim them on 
the same postage statement. Pieces that do not qualify for a presort 
rate must be presented separately from any presorted rate mailings, but 
may be claimed on the same postage statement as a 5-digit rate and BMC 
presort rate mailing.
* * * * *

4.7  Barcoded Discount

    The barcoded discount applies to machinable parcels (C050) mailed 
at single-piece rates and Presorted Special Standard Mail BMC rates 
that bear a correct, readable barcode under C850 for the ZIP Code shown 
in the delivery address, and that are part of a mailing of at least 50 
pieces of Special Standard Mail. The discount does not apply to pieces 
mailed at the Presorted Special Standard Mail 5-digit rates.
[Renumber former E620.5.0 and 5.1 as E630.5.0 and E630.5.1 to read as 
follows:]
5.0  LIBRARY MAIL

5.1  Qualification

    Library Mail is Standard Mail matter meeting the standards in E611, 
E613, and those below. Library Mail rates are based on the weight of 
the piece, without regard to zone. The basic rate category applies to 
all Library Mail.

[Renumber former E620.5.2 through E620.5.7 as E630.5.2 through 
E630.5.7.]
[Insert new 5.8 as follows:]

5.8  Barcoded Discount

    The barcoded discount applies to machinable parcels (C050) of 
Library Mail bearing a correct, readable barcode under C850 for the ZIP 
Code shown in the delivery address and that are part of a mailing of at 
least 50 Library Mail pieces.

[Insert new 6.0 to read as follows:]
6.0  BULK PARCEL POST
[Reserved]
[Revise the title of E640 and the first sentence of E640.1.1 to read as 
follows:]

E640  Automation Standard Mail (A) Rates

1.0  REGULAR AND NONPROFIT RATES

1.1  All Pieces

    All pieces in an automation rate Regular or Nonprofit Standard Mail 
(A) mailing must: * * *
* * * * *

E650  Destination Entry

* * * * *

E652  Parcel Post

1.0  BASIC STANDARDS
[Amend 1.1 through 1.4 to add information on DSCF and DDU destination 
entry rates to read as follows:]

1.1  Definitions

    Destination entry discounts apply to Parcel Post mailings prepared 
as specified in M041, M045, and M630 and addressed for delivery within 
the service area of a destination BMC (or auxiliary service facility), 
sectional center facility (SCF), or delivery unit (DU) where they are 
deposited by the mailer. For this standard, the following destination 
facility definitions apply:
    a. A destination bulk mail center (DBMC) includes all bulk mail 
centers (BMCs) and auxiliary service facilities (ASFs) under L602, and 
designated sectional center facilities (SCFs) under 4.0.
    b. A destination sectional center facility (DSCF) includes all 
facilities

[[Page 37977]]

listed under L005. Mail that is prepared on pallets for 5-digit ZIP 
Codes listed in Exhibit 5.0 must be entered at the BMC shown in the 
exhibit instead of at the SCF serving the 5-digit ZIP Codes of the 
delivery addresses appearing on mailpieces unless an exception has been 
granted under 1.3e.
    c. A destination delivery unit (DDU) is a facility that delivers to 
the addresses appearing on the deposited pieces in a destination entry 
rate Parcel Post mailing. Refer to the Drop Shipment Product maintained 
by the National Customer Support Center (NCSC) (see G043) to determine 
the location of a 5-digit delivery facility. There is a charge for the 
Drop Shipment Product. When the Drop Shipment Product shows that mail 
for a single 5-digit ZIP Code area is delivered out of more than one 
postal facility, use the facility from which the majority of city 
carrier routes are delivered as the facility at which the DDU mail must 
be entered unless the 5-digit ZIP Code is listed in Exhibit 6.0 or 
Exhibit 7.0.

1.2  General

    A destination entry mailing is a Parcel Post mailing that:
    a. May be bedloaded, on pallets, or in pallet boxes on pallets, 
sacks, or other authorized containers as specified in 2.0 through 5.0, 
depending on the facility at which the pieces are deposited and;
    b. Is not plant-loaded.

1.3  DBMC, DSCF, and DDU Rates

    For DBMC, DSCF, or DDU rates, pieces must meet the applicable 
standards in 1.0 through 5.0 and meet the following criteria:
    a. Be part of a single mailing of 50 or more pieces that are 
eligible for and claimed at any Parcel Post rate or rates.
    b. Be deposited at a destination BMC (DBMC) or auxiliary service 
facility, or other equivalent facility; destination sectional center 
(DSCF); or destination delivery unit (DDU) as applicable for the rate 
claimed and as specified by the USPS.
    c. Be addressed for delivery within the ZIP Code ranges that the 
applicable entry facility serves.
    d. For destination BMC (DBMC) rates, be part of a Parcel Post 
mailing that is deposited at a BMC or ASF under L602 or other 
designated facility under 4.0, addressed for delivery within the ZIP 
Code range of that facility and prepared in accordance with M041 and 
M045 or M630.
    e. For destination sectional center facility (DSCF) rates, be part 
of a Parcel Post mailing deposited at a designated SCF facility under 
L005 (or at a BMC under Exhibit 5.0); addressed for delivery within the 
ZIP Code service area of that SCF facility under L005 and prepared in 
accordance with M041 and M045, and/or M630. For 5-digit ZIP Code areas 
listed under Exhibit 5.0, mail prepared on pallets must be entered at 
the corresponding BMC facility shown in that Exhibit (not at the SCF) 
unless an exception is requested 15 days in advance of the mailing in 
writing and granted by the Area Manager, Operations Support having 
jurisdiction over the BMC and SCF. Exceptions, if granted, will be for 
a limited time. Mailers must not prepare mail on pallets (including 
pallet boxes on pallets) for the DSCF rate if the 5-digit delivery 
facility is unable to handle pallets. Refer to the Drop Shipment 
Product maintained by the National Customer Support Center (NCSC) (see 
G043) to determine which 5-digit delivery facilities can handle pallets 
(including pallet boxes on pallets). There is a charge for the Drop 
Shipment Product. When the Drop Shipment Product shows that mail for a 
single 5-digit ZIP Code area is delivered out of more than one postal 
facility, use the facility where the majority of city carrier routes 
are located for purposes of determining if the delivery facility can 
handle pallets, unless the 5-digit ZIP Code is listed in Exhibit 6.0 or 
Exhibit 7.0. For ZIP Codes in Exhibits 6.0 and 7.0 use the name of the 
facility associated with the 5-digit ZIP Code on the respective exhibit 
along with the Drop Shipment Product to determine if pallets may be 
prepared for one of those 5-digit areas.
    f. For destination delivery unit (DDU) rates, be part of a Parcel 
Post mailing prepared in accordance with M041 and M045 and/or M630 and 
deposited at a designated destination delivery unit that delivers 
parcels to the addresses appearing on the deposited pieces. There is no 
required minimum number of pieces that must be deposited for the DDU 
rate and no specific preparation requirements; however, they must be 
part of a mailing of at least 50 Parcel Post rate pieces and must be 
separated by 5-digit ZIP Codes. Refer to the Drop Shipment Product 
maintained by the National Customer Support Center (NCSC) (see G043) to 
determine the location of the 5-digit delivery facility and whether it 
can handle pallets (including pallet boxes on pallets). There is a 
charge for the Drop Shipment Product. When the Drop Shipment Product 
shows that mail for a single 5-digit ZIP Code area is delivered out of 
more than one postal facility, use the facility from which the majority 
of city carrier routes are delivered as the facility at which the DDU 
mail must be entered and to determine whether that facility can handle 
pallets, unless the 5-digit ZIP Code is listed in Exhibit 6.0 or 
Exhibit 7.0. For ZIP Codes in Exhibits 6.0 and 7.0 use the name of the 
facility associated with the 5-digit ZIP Code on the respective exhibit 
as the facility at which DDU mail must be entered for that 5-digit ZIP 
Code. This facility name should be used along with the Drop Shipment 
Product to determine if that facility can handle pallets. If a DDU 
facility cannot handle pallets, and a mailer transports mail to the DDU 
facility on pallets, the driver will have to unload the pallets into a 
container specified by the delivery unit.

1.4 Postage Payment

    Postage payment for DBMC, DSCF, and DDU rate mail is subject to the 
same standards that apply generally to Standard Mail (B). Except for 
plant-verified drop shipments (see P750) or metered mail drop shipment 
(see D072), the mailer must have a meter license or permit imprint 
authorization at the destination facility parent post office for 
mailings deposited for entry at a DBMC or ASF, at a destination 
sectional center facility, or at the parent post office of a 
destination delivery unit. Postage and fees (under E630) are paid to 
the post office that verifies the mailings. The mailer must ensure that 
Form 8125 accompanies all plant-verified drop shipments.
[Rename 1.5 to read as follows:]

1.5  BMC as Agent

    The DBMC may act as acceptance agent only for its parent post 
office (see Exhibit 1.5) and only if authorized by Form 4410 for each 
mailer depositing DBMC entry rate mail.
[Delete 1.6.]
2.0  PREPARATION
[Amend 2.0 to include new destination entry rates as follows:]

2.1  Bedloaded Parcels

[Revise 2.1 to limit bedloaded destination entry mailings to BMCs and 
DDUs as follows:]
    A mailer may present bedloaded DBMC parcels if the mailer's vehicle 
has a road-to-bed height of 50 (2) inches. If applicable, 
the mail to be entered at different destinations must be separated to 
prevent mixing of mailings for deposit at different destinations. DBMC 
rate mailings may be bedloaded for deposit at BMCs/ASFs, and DDU rate 
mailings may be bedloaded for deposit at DDUs. Refer to the Drop 
Shipment Product available from the National Customer Support Center 
(NCSC) (see G043) to determine dock requirements

[[Page 37978]]

for a DDU facility. (There is a charge for this information.)

2.2  Containers

[Reorganize and revise 2.2 to include DSCF and DDU mailings and delete 
use of BMC over-the-road containers for the DBMC rate as follows:]
    DBMC (if not bedloaded), DDU rate mailings (if not bedloaded), and 
all DSCF mailings must be prepared as follows:
    a. Machinable parcels for which a DBMC, DSCF, or DDU rate is 
claimed must be sacked under M630 or prepared on pallets under M041 and 
M045.
    b. For DBMC rate mail, nonmachinable parcels that each weigh 35 
pounds or less must be sacked under M630 if the parcels do not contain 
perishables and the size of the parcels allows a sack to hold at least 
two pieces. DBMC rate nonmachinable parcels that cannot be sacked in 
this manner or that weigh more than 35 pounds must be transported as 
outside (unsacked) pieces. If authorized in advance by the USPS, DBMC 
rate nonmachinable parcels may be palletized.
    c. DSCF rate mail, if sacked under M630, must contain at least 7 
pieces per sack or, if the sack is overflow from a 5-digit sack that 
contains at least 7 pieces it may contain less. DSCF rate mail, if 
sacked under M045 as overflow from a 5-digit pallet that meets the 
applicable pallet minimum, may contain any number of pieces. Machinable 
and nonmachinable pieces may be included in the same sack.
    d. For the DSCF rate, 5-digit sacks may be bedloaded or they may be 
placed on SCF pallets that are labeled and otherwise prepared under 
M045.
    e. For DSCF rate and DDU rate mail, nonmachinable parcels may be 
palletized (including pallet boxes on pallets). Nonmachinable parcels 
may be combined with machinable parcels on 5-digit pallets (including 
pallet boxes on pallets) claimed at DSCF or DDU rates under M041 and 
M045.
    f. For DDU rate mail, there are no minimums for sacks, pallets, or 
pallet boxes on pallets. DDU rate mail must be separated by 5-digit ZIP 
Code (even if bedloaded) and, if placed in sacks or on pallets 
(including pallet boxes on pallets), it must be properly labeled to the 
5-digit ZIP Code. Machinable and nonmachinable pieces may be included 
in the same sack or on the same pallet (including pallet boxes).
3.0  DEPOSIT

3.1  Freight

    Drop shipments are freight until deposited and accepted as mail at 
the destination facility. The mailer may request use of a numbered PVDS 
band seal to secure mailer vehicles transporting plant-verified drop 
shipments.

3.2  Presentation

[Revise to include requirements for DSCF and DDU destination entry 
mailings as follows:]
    Destination entry rate mailings must be verified under a plant-
verified drop shipment authorization by a detached mail unit (DMU) in 
the mailer's plant or at the origin post office business mail entry 
unit (BMEU) serving the mailer's plant. They also may be deposited for 
verification at a business mail entry unit located at a destination 
BMC, destination sectional center facility, or other designated 
destination postal facility. Only plant-verified drop shipments may be 
deposited at a destination delivery unit not co-located with a post 
office or other postal facility having a business mail entry unit. When 
presented to the USPS, destination entry mailings must meet the 
following requirements:
    a. Separation by zone for DBMC rate mailings is required only for 
permit imprint mailings of identical-weight pieces that are not mailed 
using a postage payment system under P710, P720, or P730, or not mailed 
under M630.8.0.
    b. Each mailing must be separated from other mailings, and 
destination entry rate mailings for deposit at one destination postal 
facility must be separated from mailings for deposit at other 
facilities.
    c. Mail must be separated from freight transported on the same 
vehicle.
    d. Each piece of DBMC, DSCF, or DDU rate Parcel Post must be marked 
as specified in M012 and M630.
    e. The mailer must ensure that Form 8125 accompanies all plant-
verified drop shipments.
    f. If Periodicals mail is on the same vehicle as Standard Mail (B) 
the Periodicals mail should be loaded in the tail of the vehicle.

[Rename the title of 3.3 to read as follows:]

3.3  BMC as Agent

    The DBMC may verify and accept mail if authorized by Form 4410 to 
act as agent for the parent post office where the mailer's account or 
license is held.

3.4  Appointments

[Revise 3.4 to change and update appointment procedures as follows:]
    a. Except for local mailers under 3.5 and mailings of perishable 
commodities, appointments for deposit of destination entry rate mail at 
BMCs, ASFs, and SCFs must be scheduled through the appropriate 
appointment control center at least a day in advance. Same day 
appointments may be granted by a control center on the basis of a 
telephone request. All appointments for BMC loads must be scheduled by 
the appropriate BMC control center. Appointments for SCFs and ASFs must 
be scheduled through the appropriate district control center. 
Appointments may be made up to thirty (30) calendar days prior to a 
desired appointment date. Mailers must comply with the scheduled mail 
deposit time and location. The mailer must cancel any appointment by 
notifying the appropriate control center at least a day in advance of a 
scheduled appointment time.
    b. Electronic appointments may be made by mailers/agents using a 
USPS-issued computer log-on ID. Electronic appointments or 
cancellations must be made at least 12 hours prior to the desired time 
and date. All information required by the USPS appointment system 
regarding a mailing must be furnished.
    c. For deposit of DDU mailings, an appointment must be made by 
contacting the DDU at least 24 hours in advance. If the appointment 
must be canceled, a mailer must notify the DDU at least a day in 
advance of a scheduled appointment. Mailers desiring electronic 
confirmation of DDU mail entry also must schedule the appointment 
through the district control center. Recurring (standing) appointments 
will be allowed if shipment frequency is weekly or more often.
    d. When Periodicals are transported together with Standard Mail (A) 
or (B) as a mixed load (E250), an appointment must be obtained for 
deposit at a destination entry facility.
* * * * *

3.7  Deposit Conditions

[Revise 3.7a to clarify that rescheduling is permitted for refused 
mailings as follows:]
    Deposit of mail also is subject to these conditions:
    a. Destination facilities may refuse mailings that are unscheduled 
or late (i.e., if vehicles arrive more than 2 hours after the scheduled 
appointment at ASFs, BMCs, or SCFs and more than 20 minutes late at 
delivery units). If a mailing is refused, a mailer is permitted to make 
a new appointment.
* * * * *

[[Page 37979]]

3.8  Vehicle Unloading

[Revise 3.8 to include DSCF and DDU rate mail as follows:]
    Unloading of destination entry mailings is subject to these 
conditions:
    a. Properly prepared containerized loads (e.g., pallets) are 
unloaded by the USPS at BMCs, ASFs, and SCFs. The USPS does not unload 
or permit the mailer (or mailer agent) to unload palletized loads that 
are unstable or severely leaning or that have otherwise not maintained 
their integrity in transit.
    b. The driver must unload bedloaded shipments within 8 hours of 
arrival at BMCs, ASFs, and SCFs. Combination containerized and 
bedloaded drop shipment mailings are classified as bedloaded shipments 
for unload times. The USPS may assist in unloading.
    c. At delivery units, the driver must unload all mail, whether 
bedloaded, sacked, or palletized (including pallet boxes on pallets) 
within 1 hour of arrival. If pallets (including pallet boxes on 
pallets) are stacked, the driver is required to unload, unstack, and 
unstrap them. If a DDU facility cannot handle pallets, and a mailer 
transports mail to the DDU facility on pallets, the driver must unload 
the pallets into a container specified by the delivery unit. The driver 
may be required to place bedloaded pieces in containers provided by the 
delivery unit in order to maintain separation by 5-digit ZIP Codes or 
to place containerized mail so as to maintain the separation of 5-digit 
ZIP Codes.
    d. When driver unloading is required, the driver or assistant must 
stay with and continue to unload the vehicle once at the dock.
    e. The driver must remove the vehicle from USPS property after 
unloading. The driver and assistant are not permitted in USPS 
facilities except the dock and designated driver rest area.

3.9  Charges

[Revise 3.9 to include all destination rate mailings as follows:]
    The USPS is not responsible for demurrage or detention charges 
incurred by a mailer who presents destination rate mailings.

3.10  Appeals

    Mailers who believe that they are denied equitable treatment may 
appeal to the manager, customer service (district), responsible for the 
destination postal facility.

3.11  Documentation

[Revise 3.11 to include DSCF and DDU mailings as follows:]
    A postage statement must accompany each destination entry rate 
mailing. Any other documentation must be submitted as required by the 
standards for the rate claimed or the postage payment method used.
* * * * *
[Add 5.0 as follows to provide for deposit of some DSCF mail at a BMC:]
5.0  DSCF MAIL ENTERED AT A DESIGNATED BMC
    DSCF rate mail prepared on pallets (including pallet boxes on 
pallets) that is for a 5-digit ZIP Code listed in Exhibit 5.0 must be 
entered at the corresponding BMC facility listed on that exhibit 
instead of at the DSCF unless an exception has been granted under 1.3e. 
Sacked DSCF rate mail for the 5-digit ZIP Codes in Exhibit 5.0 must be 
entered at the DSCF.

           Exhibit E652.5.0, BMC Deposit of DSCF Rate Pallets           
------------------------------------------------------------------------
                BMC                         Destination ZIP code        
------------------------------------------------------------------------
ATLANTA...........................  30006-08, 30, 32-37, 60-69, 71, 80- 
                                     86, 88-90.                         
                                    30305-07, 19, 24, 28-29, 38, 40-42, 
                                     45-46, 59, 62-63, 66, 76.          
                                    31101.                              
                                    39901.                              
CHICAGO...........................  53140-44.                           
                                    53401-08.                           
                                    60016-17, 19, 25, 53, 56, 68, 70, 76-
                                     77.                                
                                    60103, 05, 07, 20-23, 26, 31, 53-54,
                                     60-65, 68, 76, 79, 87, 89, 92-95.  
                                    60301-04, 06-99.                    
                                    60409, 11-12, 15, 22, 25, 30-33, 35-
                                     36, 38-41, 46, 53-58, 62, 64-65,   
                                     67, 73, 77-78, 82, 90.             
                                    60504-07, 15-17, 21-23, 25-26, 40,  
                                     42, 63-64, 66-68, 98.              
                                    60601, 05, 08-60, 67, 81, 90, 93-94.
                                    60714.                              
                                    60803-05.                           
CINCINNATI........................  None.                               
DALLAS............................  None.                               
DENVER............................  69190.                              
                                    80001-19, 32, 40-42, 44, 46-47.     
                                    80110-15, 20-29, 50-56, 60-63, 65-  
                                     67.                                
                                    80215, 21-22, 24, 26-29, 31-33, 35- 
                                     37, 51.                            
                                    80401-19.                           
                                    80521-28, 53-54.                    
                                    80631-39.                           
DES MOINES........................  50000-50399, 50900-50999.           
DETROIT...........................  48007, 15, 21, 25-26, 34,37, 42-46, 
                                     66-73, 75-76, 80-84, 86, 89-93,98- 
                                     99.                                
                                    48103-04, 06-09, 11-13, 20-28, 30,  
                                     34, 41, 50-54, 61-62, 70, 74, 80,  
                                     82-88, 92, 95, 97-98.              
                                    48192, 95, 97-98.                   
                                    48204, 20-21, 27-28, 35.            
                                    48310-18, 40-43, 97.                
GREENSBORO........................  27101-02.                           
                                    27408-10.                           
                                    27514-16.                           
                                    27701.                              

[[Page 37980]]

                                                                        
JACKSONVILLE......................  31520-25, 27.                       
                                    32065, 67, 73, 84-86, 91-92, 95.    
                                    32173-76.                           
                                    32205, 07, 10-11, 16, 20-22, 24-25, 
                                     30, 36, 38-39, 44-45, 47, 54, 77.  
                                    32901-12, 19, 22-32, 34-37, 40-41,  
                                     51-56, 58-69, 76-78.               
                                    33427-29, 31-34, 60-67, 81, 86-87,  
                                     96-98.                             
                                    33755-67, 70-79.                    
                                    33880-85.                           
                                    34101-06, 08-10, 12-14, 16-17, 19-  
                                     20.                                
                                    34470-82.                           
                                    34945-51, 54, 79-82, 94-97.         
KANSAS CITY.......................  64013-15, 50-51, 55-56, 58.         
                                    64116-19, 51, 53-54, 57-61, 63-64,  
                                     67, 88, 90.                        
                                    66002, 44-49.                       
LOS ANGELES.......................  90220-23, 40-42, 80.                
MEMPHIS...........................  38018, 88.                          
                                    38115, 18, 25, 33-35, 38-39, 41, 75,
                                     81, 83-84, 88, 93, 95.             
                                    38614.                              
                                    38732.                              
MINNEAPOLIS/ST. PAUL..............  None.                               
NEW JERSEY........................  None.                               
PHILADELPHIA......................  19001-04, 06-10, 12-18, 20-23, 25-  
                                     26, 28-41, 43-44, 46-50, 52-53, 61,
                                     63-67, 70, 72-76, 78-91, 93-96.    
                                    19111, 14-16, 19-20, 24, 28, 34-37, 
                                     40, 44, 49, 52, 54-55, 60.         
PITTSBURGH........................  None.                               
ST. LOUIS.........................  62002, 40.                          
                                    62220-23, 26.                       
                                    63005-06, 11, 17, 21-22, 24, 31-34, 
                                     42-45, 74.                         
                                    63104-41, 43-44, 46-47, 51, 57-58.  
                                    63301-04.                           
SAN FRANCISCO.....................  93921-23.                           
                                    94002-03, 10-12, 22-28, 30, 35, 39- 
                                     43, 59, 61-65, 70, 86-89.          
                                    94401-99.                           
                                    94504, 06, 08, 11-24, 26-29, 33, 35-
                                     46, 48, 55-56, 58-63, 67, 70-71, 73-
                                     81, 83-85, 89-99.                  
SEATTLE...........................  98002-04, 23, 31, 35, 63-64, 92-93. 
SPRINGFIELD.......................  None.                               
WASHINGTON........................  None.                               
------------------------------------------------------------------------

6.0  DELIVERY FACILITY EXCEPTIONS TO THE ``MAJORITY OF CITY CARRIERS'' 
RULE
    For ZIP Codes in Exhibit 6.0 use the name of the facility 
associated with the 5-digit ZIP Code in that exhibit as the facility at 
which DDU rate mail for that 5-digit ZIP Code must be entered, and for 
both DDU and DSCF mail, to determine whether that 5-digit facility can 
handle pallets. See 1.1 and 1.3.

Exhibit E652.6.0, Delivery Facility Exceptions to the ``Majority of 
City Carriers'' Rule

    This listing identifies 5-digit ZIP Codes that are exceptions to 
the ``majority of city carriers rule'' which is used to determine the 
Standard (B) parcel facility for a 5-digit ZIP Code in instances of 
where a ZIP Code is delivered by multiple facilities. The name of the 
primary facility for parcel delivery is listed beside each 5-digit ZIP 
Code. Additional information about the facility including drop ship 
address and whether the facility can handle a pallet is included in the 
Drop Shipment Product. At a future date this list will be available in 
the Drop Shipment Product.

------------------------------------------------------------------------
                 ZIP Code                           Facility name       
------------------------------------------------------------------------
ALABAMA:                                                                
  36130...................................  Montgomery.                 
ALASKA:                                                                 
  99701...................................  Main Office.                
  99709...................................  Main Office.                
  99801...................................  Mendenhall.                 
CALIFORNIA:                                                             
  91941...................................  La Mesa.                    
  92056...................................  Oceanside.                  
  92122...................................  Universal City Annex.       
  92623...................................  Harvest Station.            
  92693...................................  San Juan Capistrano.        
  94087...................................  Sunnyvale.                  
  94304...................................  Palo Alto.                  
FLORIDA:                                                                
  34743...................................  Buena Ventura Lakes.        
  34747...................................  Celebration.                
GEORGIA:                                                                
  30811...................................  Keysville.                  
  31704...................................  Albany.                     
IOWA:                                                                   
  52401...................................  Cedar Rapids.               
KANSAS:                                                                 
  66044...................................  Jayhawk.                    
  66226...................................  Monticello.                 
  66619...................................  Hicrest.                    
KENTUCKY:                                                               
  40022...................................  Simpsonville.               
  40763...................................  Williamsburg.               
  41730...................................  Hyden.                      
  42338...................................  Hartford.                   
LOUISIANA:                                                              
  70503...................................  Oil Center.                 
  71201...................................  Monroe.                     
MAINE:                                                                  
  04043...................................  Kennebunk.                  
  04345...................................  Gardiner.                   
  04402...................................  Eastern Maine Carrier Annex.
  04769...................................  Presque Isle.               
  04841...................................  Rockland.                   
MASSACHUSETTS:                                                          
  02584...................................  Nantucket.                  
MINNESOTA:                                                              
  55369...................................  Maple Grove.                
  55378...................................  Burnsville.                 
  56387...................................  Waite Park.                 
MISSOURI:                                                               
  64113...................................  Country Club.               
MONTANA:                                                                
  59106...................................  Billings.                   
NEW HAMPSHIRE:                                                          
  03224...................................  Tilton.                     
NEW YORK:                                                               
  14304...................................  Niagara Falls.              
NORTH CAROLINA:                                                         

[[Page 37981]]

                                                                        
  27706...................................  Durham.                     
  28018...................................  Forest City.                
  28309...................................  Lafayette.                  
OHIO:                                                                   
  45013...................................  Hamilton.                   
  45459...................................  Centerville.                
PENNSYLVANIA:                                                           
  18073...................................  Red Hill.                   
  18241...................................  Nuremberg.                  
  19026...................................  Pilgrim Gardens.            
  19136...................................  Holmesburg Carrier Annex.   
RHODE ISLAND:                                                           
  02842...................................  Middleton.                  
SOUTH DAKOTA:                                                           
  57402...................................  Aberdeen.                   
TENNESSEE:                                                              
  37224...................................  South.                      
TEXAS:                                                                  
  75501...................................  Texarkana.                  
  75903...................................  Lufkin.                     
VIRGINIA:                                                               
  22320...................................  Alexandria.                 
  22405...................................  Fredericksburg.             
  23433...................................  Driver.                     
  23521...................................  LC Page.                    
WASHINGTON:                                                             
  98203...................................  Claremont.                  
  98324...................................  Carbonado.                  
  98375...................................  South Hill Annex.           
  98387...................................  Spanaway.                   
  98687...................................  East Vancouver DDU.         
WEST VIRGINIA:                                                          
  25801...................................  Beckley.                    
  26302...................................  Eastpointe.                 
  26330...................................  Eastpointe.                 
WISCONSIN:                                                              
  53703...................................  Madison.                    
------------------------------------------------------------------------

7.0  DELIVERY FACILITIES DIFFERENT THAN THOSE IN THE DROP SHIPMENT 
PRODUCT
    For ZIP Codes in Exhibit 7.0 use the name of the facility 
associated with the 5-digit ZIP Code in that exhibit as the facility at 
which DDU rate mail for that 5-digit ZIP Code must be entered, and for 
both DDU and DSCF mail, to determine whether that 5-digit facility can 
handle pallets. See 1.1 and 1.3.

Exhibit E652.7.0, Delivery Facilities Different than those in the 
Drop Shipment Product

    Parcel Post mailings for the ZIP Codes shown must be deposited at 
the facilities listed in order to qualify for destination delivery unit 
rates. The listing identifies 5-digit ZIP codes and facilities that are 
different from the ones indicated in the Drop Shipment Product for 
letters and flats. At a future date this information will be available 
in the Drop Shipment Product.

------------------------------------------------------------------------
         ZIP codes served            Destination delivery unit location 
------------------------------------------------------------------------
ALASKA:                                                                 
    99702.........................  Fairbanks--5400 Mail Trail,         
                                     Fairbanks, AK 99709-9998.          
CALIFORNIA:                                                             
    90223.........................  Compton--701 S. Santa Fe Avenue,    
                                     Compton, CA 90221-9998.            
    92677.........................  Laguna Niguel--29911 Niguel Road,   
                                     Laguna Beach, CA 92607-9998.       
    92684.........................  Westminster--15080 Goldenwest       
                                     Circle, Westminister, CA 92685-    
                                     9998.                              
FLORIDA:                                                                
    34278.........................  Manasota P&DC--850 Tallevast Road,  
                                     Sarasota, Florida 34243-3249.      
MASSACHUSETTS:                                                          
    02113, 14, 29, 99.............  Boston P&DC--25 Dorchester Avenue,  
                                     Boston, MA 02205-9998.             
    02215.                          Incoming Mail Center--307 Beacham   
                                     Street,                            
    02144-45......................  Chelsea, MA 02150-9998.             
MISSISSIPPI:                                                            
39563.............................  Pascagoula--911 Jackson Avenue,     
                                     Pascagoula, MS 39567-9998.         
MINNESOTA:                                                              
    55102.........................  Saint Paul--180 Kellogg Blvd. E.,   
                                     Saint Paul, MN 55101-9997.         
MONTANA:                                                                
    59401, 04-05, 14..............  Great Falls Annex--1409 14th Street 
                                     SW, Great Falls, MT 59404-9998.    
NEW YORK:                                                               
    10001, 18, 26, 27, 29, 32-35,   New York City--James A. Farley      
     40, 43, 60, 81, 87, 90, 95,     Building, 441 8th Avenue, New York,
     98, 99.                         NY 10001-9998.                     
    10115-23, 99.                                                       
    10017, 21, 22, 28, 30, 31, 37,  Bronx--East Side Parcel Post Annex, 
     39, 44, 55.                     500 East 132nd Street, Bronx, NY   
                                     10454-4619.                        
    10128, 51-55, 62, 65-78.                                            
    10002-07, 09-14, 16, 19, 20,    New York--Central Parcel Post       
     23-25, 36, 38, 41.              Facility, 341 9th Avenue, New York,
                                     NY 10199-9991.                     
    10103-07, 10, 49, 58.                                               
    10210, 56-60, 65, 70, 71, 79,                                       
     80-82, 85, 86, 92                                                  
    10008, 15, 45-48, 80..........  New York--Church Street Station, 90 
                                     Church Street, New York, NY 10007- 
                                     9998.                              
    10203, 49, 61, 67.                                                  
    10111, 12, 29, 85.............  New York--Times Square Station, 340 
                                     W. 42nd Street, New York, NY 10036-
                                     9998.                              
    10461.........................  Soundview--1687 Gleason Avenue,     
                                     Bronx, NY 10472-9998.              
    10463.........................  Mott Haven--517 E. 139th Street,    
                                     Bronx, NY 10454-9998.              
    14901.........................  Elmira P&DC--1580 Sullivan Street,  
                                     Elmira, NY 14901-9997.             
PENNSYLVANIA:                                                           
    15131-35......................  McKeesport--850 Walnut Street,      
                                     McKeesport, PA 15134.              
    15122.........................  West Mifflin--500 Regis Avenue,     
                                     Pittsburgh, PA 15236-9998.         
    15201.........................  Bloomfield--5182 Liberty Avenue,    
                                     Pittsburgh, PA 15224-9998.         
    15223.........................  Glenshaw--1541 Butler Park Road,    
                                     Pittsburgh, PA 15116-9998.         
    15225.........................  Woods Run Annex--2840 New Beaver    
                                     Avenue, Pittsburgh, PA 15233-9998. 
    15240.........................  Oakland--347 S. Bouquet Street,     
                                     Pittsburgh, PA 15213-9998.         
    15244.........................  Greentree--770 Trumbull Drive,      
                                     Pittsburgh, PA 15220.              
    17735.........................  Canton--55 Troy Street, Canton, PA  
                                     17724-9998.                        
------------------------------------------------------------------------


[[Page 37982]]

E670  Nonprofit Standard Mail

* * * * *
9.0  MAILING WHILE APPLICATION PENDING
* * * * *

9.2  Postage Record

[Amend 9.2 by removing ``or Single-Piece Standard Mail'' in the last 
sentence to read as follows:]
    While an application is pending, postage must be paid at the 
applicable First-Class Mail or Priority Mail rates, or at the following 
Standard Mail (A) rates: regular Enhanced Carrier Route; regular 
automation, or regular Presorted. The USPS records the difference 
between postage paid at the regular Standard Mail (A) rates (Enhanced 
Carrier Route, automation and Presorted) and the postage that would 
have been paid at the Nonprofit Standard Mail rates. No record is kept 
if postage is paid at First-Class Mail or Priority Mail rates.

9.3  Refund

[Amend 9.3b by removing ``or Single-Piece Standard Mail'' to read as 
follows:]
    If an authorization to mail at Nonprofit Standard Mail rates is 
issued, the mailer may be refunded the postage paid at that office in 
excess of the Nonprofit Standard Mail rate since the effective date of 
the authorization. No refund is made:
* * * * *
    b. If postage was paid at First-Class Mail or Priority Mail rates.
* * * * *

F  Forwarding and Related Services

F000  Basic Services

F010  Basic Information

* * * * *
3.0  DIRECTORY SERVICE
[Amend 3.0d by removing ``or Single-Piece Standard Mail'' to read as 
follows:]
    USPS letter carrier offices give directory service to the types of 
mail listed below that have an insufficient address or cannot be 
delivered at the address given (the USPS does not compile a directory 
of any kind):
* * * * *
    d. Parcels mailed at any Standard Mail (B) rate or endorsed by the 
mailer.
* * * * *
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES

5.1  Priority Mail and First-Class Mail

[Insert new sentence before the chart in 5.1 to read as follows:]
    Undeliverable Priority Mail and First-Class Mail (including stamped 
cards and postcards) are treated as described in the chart below. 
During months 13 through 18, pieces are returned to the sender with an 
on-piece address correction at no charge. Forwarding address 
information is not provided for mail with the exceptional address 
format. The Priority Mail portion of a Priority Mail drop shipment 
receives the forwarding, return, and address correction services 
described in this chart. The mail enclosed in a Priority Mail drop 
shipment receives the services appropriate for its class. First-Class 
Mail and Priority Mail that bear Standard Mail (A) markings and 
endorsements as permitted in E620.1.3 and P100, receive forwarding, 
return, and address correction services for Standard Mail (A) under 
5.3.
* * * * *

5.2  Periodicals

[Amend 5.2e and 5.2g to read as follows:]
    Undeliverable Periodicals publications (including publications 
pending Periodicals authorization) are treated as described in the 
chart below and under these conditions:
* * * * *
    e. The publisher may request the return of copies of undelivered 
Periodicals publications by printing the endorsement ``Address Service 
Requested'' on the envelopes or wrappers, or on one of the outside 
covers of unwrapped copies, immediately preceded by the sender's name, 
address, and ZIP+4 or 5-digit ZIP Code. The per piece rate charged for 
return is the appropriate single-piece First-Class Mail or Priority 
Mail rate as applicable for the weight of the piece. When the address 
correction is provided incidental to the return of the piece, there is 
no charge for the correction. This endorsement obligates the publisher 
to pay return postage.
* * * * *
    g. Periodicals matter is forwarded only to domestic addresses.

[Amend the ``Address Service Requested'' portion of 5.2g (chart) to 
read as follows:]

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces        
------------------------------------------------------------------------
``Address Service Requested''  First 60 days: piece forwarded; no       
 1.                             charge.                                 
                               After 60-day period, or if undeliverable:
                                piece returned with address correction  
                                or reason for nondelivery attached;     
                                single-piece First-Class or Priority    
                                Mail rate as applicable for weight of   
                                piece charged.                          
``Forwarding Service           Not available for Periodicals.           
 Requested''.                                                           
``Return Service Requested''.  Not available for Periodicals.           
``Change Service Requested''.  Not available for Periodicals.           
No endorsement 1.............  First 60 days: piece forwarded; no       
                                charge.                                 
                               After 60-day period, or if undeliverable:
                                separate address correction or reason   
                                for nondelivery provided; address       
                                correction fee charged; piece disposed  
                                of by USPS.                             
------------------------------------------------------------------------
1 Valid for all pieces, including Address Change Service (ACS)          
  participating pieces.                                                 

5.3  Standard Mail (A)

[Amend 5.3 by deleting 5.3a and renumbering 5.3b through 5.3i as 5.3a 
through 5.3h, respectively. Revise renumbered 5.3a, 5.3b, and 5.3f 
through 5.3h to read as follows:]
    Undeliverable Standard Mail (A) is treated as described in the 
chart below and under these conditions:
    a. Mail that qualifies for a single-piece Special Standard or 
Library Mail Standard Mail (B) rate under the applicable standards is 
forwarded and returned at that rate, if the mailer's endorsement 
includes the name of the applicable Standard Mail (B) rate.
    b. Mail that qualifies for Shipper Paid Forwarding (F020) under the 
applicable standards is forwarded at, and (if necessary) returned at 
the single-piece First-Class or Priority Mail rate as applicable for 
the weight of the piece.
* * * * *
    f. The weighted fee is the appropriate single-piece First-Class or 
Priority Mail rate, as applicable for the weight of the piece, 
multiplied by 2.472 and rounded

[[Page 37983]]

up to the next whole cent (if the computation yields a fraction of a 
cent). The weighted fee is computed (and rounded if necessary) for each 
piece individually. Neither the applicable postage, the factor, nor any 
necessary rounding is applied cumulatively to multiple pieces. The fee 
is charged when an unforwardable or undeliverable piece is returned to 
the sender and the piece is endorsed ``Address Service Requested'' or 
``Forwarding Service Requested.'' These endorsements obligate the 
sender to pay the weighted fee on all returned pieces.
    g. 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.''

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces        
------------------------------------------------------------------------
``Return Service Requested--   Piece returned with new address or reason
 BPRS''.                        for nondelivery attached; only the Bulk 
                                Parcel Return Service fee charged       
                                (address correction fee not charged).   
``Address Service Requested--  Months 1 through 12: piece forwarded; no 
 BPRS''.                        charge to addressee; separate ACS notice
                                of new address provided; ACS address    
                                correction fee and postage at single-   
                                piece First-Class or Priority Mail rate 
                                as applicable for weight of piece       
                                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).            
------------------------------------------------------------------------

    h. Standard Mail (A) is forwarded only to domestic addresses.

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces        
------------------------------------------------------------------------
``Address Service Requested''  Months 1 through 12: piece forwarded; no 
 1.                             charge; separate notice of new address  
                                provided; address correction fee        
                                charged.                                
                               Months 13 through 18: piece returned with
                                new address attached; only weighted fee 
                                charged (address correction fee not     
                                charged).                               
                               After month 18, or if undeliverable:     
                                piece returned with reason for          
                                nondelivery attached; only weighted fee 
                                charged (address correction fee not     
                                charged).                               
``Forwarding Service           Months 1 through 12: piece forwarded; no 
 Requested''.                   charge.                                 
                               Months 13 through 18: piece returned with
                                new address attached; only weighted fee 
                                charged (address correction fee not     
                                charged).                               
                               After month 18, or if undeliverable:     
                                piece returned with reason for          
                                nondelivery attached; only weighted fee 
                                charged (address correction fee not     
                                charged).                               
``Return Service Requested''.  Piece returned with new address or reason
                                for nondelivery attached; only return   
                                postage at single-piece First-Class or  
                                Priority Mail rate as applicable for    
                                weight of piece charged (address        
                                correction fee not charged).            
``Change Service Requested''   Separate notice of new address or reason 
 1.                             for nondelivery provided; in either     
                                case, address correction fee charged;   
                                piece disposed of by USPS.              
No endorsement...............  Piece disposed of by USPS.               
------------------------------------------------------------------------
1 Valid for all pieces, including Address Change Service (ACS)          
  participating pieces.                                                 

* * * * *
6.0  ENCLOSURES AND ATTACHMENTS
[Amend the first sentences of 6.1 and 6.2 to read as follows:]

6.1  Periodicals

    Undeliverable Periodicals publications (including publications 
pending Periodicals authorization) with a nonincidental First-Class 
Mail attachment or enclosure are returned at the single-piece First-
Class Mail or Priority Mail rate as applicable for the weight of the 
piece. The weight of the attachment or enclosure is not included when 
computing the charges for return of the mailpiece. Undeliverable 
Periodicals publications (including publications pending Periodicals 
authorization) with an incidental First-Class Mail attachment or 
enclosure are treated as dead mail unless endorsed ``Address Service 
Requested.''

6.2  Standard Mail (A)

    Undeliverable, unendorsed Standard Mail (A) with a nonincidental 
First-Class Mail attachment or enclosure is returned at the single-
piece First-Class Mail or Priority Mail rate as applicable for the 
weight of the piece. The weight of the First-Class Mail attachment or 
enclosure is not included when computing the charges for return of the 
mailpiece. Undeliverable, unendorsed Standard Mail (A) with an 
incidental First-Class Mail attachment or enclosure is treated as dead 
mail.
* * * * *
8.0  DEAD MAIL

8.1  Basic Information

[Amend 8.1 to read as follows:]
    Dead mail is matter deposited in the mail that is or becomes 
undeliverable and cannot be returned to the sender from the last office 
of address. Every reasonable effort is made to match articles found 
loose in the mail with the envelope or wrapper from which lost and to 
return or forward the articles.
    a. Nonmail matter (e.g., wallets and bank deposits) found in 
collection boxes or at other points within USPS jurisdiction is 
returned postage due at the single-piece First-Class Mail or Priority 
Mail rate for keys and identification devices that is applicable based 
on the weight of the matter.
* * * * *

F020 Forwarding

* * * * *
2.0  FORWARDABLE MAIL
* * * * *

2.3  Discontinued Post Office

[Amend 2.3 by removing ``and all Single-Piece Standard Mail'' to read 
as follows:]
    All Express Mail, First-Class Mail, Periodicals, and Standard Mail 
(B) addressed to a discontinued post office may be forwarded without 
added charge

[[Page 37984]]

to a post office that the addressee designates as more convenient than 
the office to which the USPS ordered the mail sent.

2.4  Rural Delivery

[Amend 2.4 by removing ``and all Single-Piece Standard Mail'' to read 
as follows:]
    When rural delivery service is established or changed, a customer 
of any office receiving mail from the rural carrier of another office 
may have all Express Mail, First-Class Mail, Periodicals, and Standard 
Mail (B) forwarded to the latter office for delivery by the rural 
carrier without added charge, if the customer files a written request 
with the postmaster at the former office.
* * * * *

2.6  Mail for Military Personnel

[Amend the first sentence of 2.6 by removing ``and all Single-Piece 
Standard Mail'' to read as follows:]
    All Express Mail, First-Class Mail, Periodicals, and Standard Mail 
(B) addressed to persons in the U.S. Armed Forces (including civilian 
employees) serving where U.S. mail service operates is forwarded at no 
added charge when the change of address is caused by official orders. * 
* *
3.0  POSTAGE FOR FORWARDING
* * * * *

3.5   Standard Mail (A)

[Amend the second sentence of 3.5 to read as follows:]
    * * * 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 single-piece 
First-Class or Priority Mail rate as applicable for the weight of the 
piece. * * *
* * * * *

G  The USPS and Mailing Standards

* * * * *

G040  Information Resources

* * * * *

G043  Address List For Correspondence

[Add the following at the end of the unit:]
Other
AMERICAN STANDARDS INSTITUTE INC, 11 W 42ND ST, NEW YORK NY 10036-8002, 
(212) 642-4900
AUTOMATIC IDENTIFICATION MANUFACTURERS (AIM), 634 ALPHA DR, PITTSBURGH 
PA 15238-2802, www.aimusa.org
UNIFORM CODE COUNCIL INC, 8163 OLD YANKEE RD STE J, DAYTON OH 45458-
1839
* * * * *

L  Labeling Lists

* * * * *
[Delete the heading ``L100 First-Class Mail'' and labeling list L102.]

L600  Standard Mail

* * * * *
[Insert new labeling list L605 as follows:]

L605 BMCs--Nonmachinable Parcel Post

    Mailers preparing BMC Presort and OBMC Presort Parcel Post mailings 
of nonmachinable parcels must sort the parcels and label pallets 
according to this list.

------------------------------------------------------------------------
      Column A--destination ZIP codes             Column B--label to    
------------------------------------------------------------------------
005-007, 009, 068-079, 085-098, 100-119,     BMC NEW JERSEY NJ 00102    
 124-127, 340.                                                          
006-009....................................  SCF SAN JUAN PR 006 \1\    
008........................................  BMC NEW JERSEY NJ 00102 \2\
008........................................  BMC JACKSONVILLE FL 32099  
                                              \3\                       
010-067, 120-123, 128, 129.................  BMC SPRINGFIELD MA 05500   
130-136, 140-149...........................  ASF BUFFALO NY 140         
150-168, 260-266, 439-447..................  BMC PITTSBURGH PA 15195    
080-084, 137-139, 169-199..................  BMC PHILADELPHIA PA 19205  
200-212, 214-239, 244, 254, 267, 268.......  BMC WASHINGTON DC 20499    
240-243, 245-249, 270-297, 376.............  BMC GREENSBORO NC 27075    
298, 300-312, 317-319, 350-352, 354-368,     BMC ATLANTA GA 31195       
 373, 374, 377-379, 399.                                                
299, 313-316, 320-339, 341, 342, 344, 346,   BMC JACKSONVILLE FL 32099  
 347, 349.                                                              
369-372, 375, 380-397, 700, 701, 703-705,    BMC MEMPHIS TN 38999       
 707, 708, 713, 714, 716, 717, 719-729.                                 
250-253, 255-259, 400-418, 421, 422, 425-    BMC CINCINNATI OH 45900    
 427, 430-433, 437, 438, 448-462, 469-474.                              
434-436, 465-468, 480-497..................  BMC DETROIT MI 48399       
500-516, 520-528, 612, 680, 681, 683-689...  BMC DES MOINES IA 50999    
498, 499, 540-551, 553-564, 566............  BMC MPLS/ST PAUL MN 55202  
570-577....................................  ASF SIOUX FALLS SD 570     
565, 567, 580-588..........................  ASF FARGO ND 580           
590-599, 821...............................  ASF BILLINGS MT 590        
463, 464, 530-532, 534, 535, 537-539, 600-   BMC CHICAGO IL 60808       
 611, 613.                                                              
420, 423, 424, 475-479, 614-620, 622-631,    BMC ST LOUIS MO 63299      
 633-639.                                                               
640, 641, 644-658, 660-662, 664-679, 739...  BMC KANSAS CITY KS 64399   
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730   
 749.                                                                   
706, 710-712, 718, 733, 747, 750-799, 885..  BMC DALLAS TX 75199        
690-693, 800-816, 820, 822-831.............  BMC DENVER CO 80088        
832-834, 836, 837, 840-847, 893, 898, 979..  ASF SALT LAKE CTY UT 840   
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852         
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870     
889-891, 900-908, 910-928, 930-935.........  BMC LOS ANGELES CA 90901   
894, 895, 897, 936-969.....................  BMC SAN FRANCISCO CA 94850 
835, 838, 970-978, 980-986, 988-999........  BMC SEATTLE WA 98000       
------------------------------------------------------------------------
\1\ Mailed from ZIP Code areas 006-009.                                 
\2\ If the entry post office is in ZIP Code areas 010-269, combine with 
  mail for ZIP Code areas 005-007, 009, 068-079, 085-098, 100-119, 124- 
  127, and 340, and label to BMC NEW JERSEY NJ 00102.                   
\3\ If the entry post office is in ZIP Code areas 270-999, combine with 
  mail for ZIP Code areas 299, 313-316, 320-339, 341, 342, 344, 346,    
  347, and 349, labeled to BMC JACKSONVILLE FL 32099.                   


[[Page 37985]]

* * * * *

M  Mail Preparation and Sortation

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.3  Preparation Instructions

[Insert new 1.3r and 1.3s to read as follows:]
    For purposes of preparing mail:
* * * * *
    r. An overflow sack for Parcel Post DSCF rate mail is a 5-digit 
sack prepared with fewer than 7 pieces after all other sacks for that 
same 5-digit ZIP Code area are prepared with 7 or more pieces per sack 
as required by M630. If all of the mail is sacked under M630, only one 
overflow sack is permitted for each 5-digit ZIP Code. If a mailing is 
prepared on pallets, remaining pieces of Parcel Post mail may be 
prepared in one or more 5-digit overflow sacks only after one or more 
5-digit pallets are prepared to meet the minimum pallet requirement 
specified in M045. More than one overflow sack per 5-digit ZIP Code 
area is permitted for mail prepared to 5-digit pallets under M045. 
Pieces in overflow sacks qualify for the Parcel Post DSCF rates.
    s. An overflow pallet in a Parcel Post DSCF rate mailing is a 5-
digit pallet containing pieces that remain after one or more 5-digit 
pallets have been prepared to meet the minimum pallet requirement 
specified in M045. Only one overflow pallet per 5-digit ZIP Code area 
is permitted for DSCF rate mail palletized under M045. Pieces on 5-
digit overflow pallets qualify for the DBMC rates.

1.4  Mailing

[Amend 1.4 to read as follows:]
    Mailings are defined as:
    a. General. A mailing is a group of pieces within the same class of 
mail and, except for certain parcel rates, the same processing category 
that may be sorted together and/or may be presented under a single 
minimum volume mailing requirement under the applicable standards. 
Generally, types of mail that follow different flows through the postal 
processing system (e.g., automation, nonautomation carrier route, and 
other nonautomation) and mail for each separate class and subclass must 
be prepared as a separate mailing. Other specific standards may define 
whether separate mailings may be combined, palletized, reported, or 
deposited together.
    b. First-Class Mail. The following types of First-Class Mail may 
not be part of the same mailing despite being in the same processing 
category:
    (1) automation rate and any other type of mail;
    (2) nonautomation Presorted rate and any other type of mail;
    (3) nonautomation Presorted rate mail prepared under the optional 
upgradable preparation and nonautomation Presorted rate mail prepared 
under the required preparation;
    (4) single-piece rate and any other type of mail.
    c. First-Class Postcards. Postcards and letters must be prepared as 
separate mailings except that they may be sorted together if each meets 
separate minimum volume mailing requirements.
    d. Periodicals. Mail qualifying for the In-County subclass rates 
may be part of a mailing at the Regular rates, or the Nonprofit rates, 
or the Classroom rates. Mail at carrier route rates, nonautomation 
presort rates, and automation rates must each be sorted as separate 
mailings. However, each of these mailings may be reported on the same 
postage statement provided the pieces are for the same publication and 
edition. See M041.6.0, M045.5.0, M045.7.0, and M200.6.0 for 
copalletized, combined, or mixed-rate level mailings.
    e. Standard Mail (A). Except as provided in E620.1.2, the following 
types of Standard Mail (A) may not be part of the same mailing:
    (1) automation Enhanced Carrier Route and any other type of mail;
    (2) non-carrier route automation and any other type of mail;
    (3) nonautomation Enhanced Carrier route and any other type of 
mail;
    (4) Presorted rate mail and any other type of mail;
    (5) Presorted rate mail prepared under the optional upgradable 
preparation and Presorted rate mail prepared under the required 
preparation;
    (6) except as provided by standard, Regular mail may not be in the 
same mailing as Nonprofit mail, and Enhanced Carrier Route mail may not 
be in the same mailing as Nonprofit Enhanced Carrier Route mail.
    See M041.6.0, M045.5.0, M045.7.0, and M200.6.0 for copalletized, 
combined, or mixed-rate level mailings.
    f. Standard Mail (B). Except for single-piece rate pieces not 
otherwise subject to a minimum mailing requirement that are presented 
under an approved manifest mailing system under P710, the following 
types of Standard Mail (B) may not be part of the same mailing even if 
in the same processing category:
    (1) Parcel Post mail and any other type of mail;
    (2) Bound Printed Matter and any other type of mail;
    (3) Special Standard and any other type of mail;
    (4) Library Mail and any other type of mail.
* * * * *

M012  Markings and Endorsements

[Renumber current M012.3.0 and M012.4.0 as M012.4.0 and M012.5.0, 
respectively. Reorganize and revise M012.1.0 and M012.2.0 and insert 
new M012.3.0 to read as follows:]
1.0  MARKINGS--BASIC STANDARDS

1.1  Class and Rate

    Except for single-piece First-Class Mail, mailpieces must be marked 
under the corresponding standards to show the class of service and/or 
rate paid:
    a. Single-Piece First-Class Mail may be identified under E130.2.5.
    b. Presorted First-Class Mail and Standard Mail (A) must be marked 
under 2.0.
    c. Standard Mail (B) must be marked under 3.0.
    d. Priority Mail must be identified under E120.
    e. Periodicals must be identified under E211.
    f. Express Mail is identified with the Express Mail mailing label 
(Label 11 or Form 5625) without any other required class or rate 
marking.
    g. All mailable hazardous materials must be labeled and/or marked 
as required in C020.

1.2  Enclosures

    Enclosures, attachments, and mixed rate mailpieces must be marked 
under the applicable standards in E070, M070, and P070.

1.3  Printing and Designs

    Required markings may be printed by a postage meter, special slug, 
ad plate, or other means that ensures a legible marking. A marking may 
not include or be part of a decorative design or advertisement.
2.0  MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL (A)

2.1  Placement

    a. Basic Marking. The basic required marking that indicates the 
class or subclass--``First-Class.'' ``Presorted Standard'' or ``PRSRT 
STD'' (or, until January 10, 2001, ``Bulk Rate'' or ``Blk. Rt.''); or 
``Nonprofit Organization'' or ``Nonprofit Org.'' or ``Nonprofit'' must 
be printed or produced as part of, or directly below or to the left of, 
the permit imprint indicia, meter stamp or impression, or adhesive or 
precanceled stamp.

[[Page 37986]]

    b. Other Markings. Other rate-specific markings (``Presorted'' or 
``PRSRT'' and ``Single-Piece'' or ``SNGLP'' (First-Class Mail only); 
``AUTO'' and ``AUTOCR'' (First-Class Mail and Standard Mail (A)); 
``ECRLOT,'' ``ECRWSH,'' and ``ECRWSS'' (Standard Mail (A) only) may be 
placed in the location specified in 2.1a or, if the marking appears 
alone or if no other information appears on the line with the marking 
except postal optional endorsement line information under M013 or 
postal carrier route package information under M014, may be placed in 
the address area on the line directly above or two lines above the 
address. If preceded by two asterisks, the ``AUTO,'' ``AUTOCR,'' 
``Single-Piece,'' or ``SNGLP'' markings also may be placed on the line 
above or two lines above the address in a mailer keyline or a manifest 
keyline or placed above the address and below the postage in an MLOCR 
ink-jet printed date correction/meter drop shipment line. 
Alternatively, the ``AUTO'' or ``AUTOCR'' markings may be placed to the 
left of the DPBC (subject to the barcode location and clear zone 
standards in C840).
    c. Additional Requirements for Carrier Route. ``AUTOCR'' (First-
Class Mail only), ``ECRLOT,'' ``ECRWSH,'' and ``ECRWSS'' (Standard Mail 
(A) only) must appear in their entirety wherever placed, except ``ECR'' 
may be placed in the postage area if ``LOT,'' ``WSH,'' or ``WSS,'' as 
applicable, is placed in the line above or two lines above the address, 
as specified in 2.1b.

2.2  Exceptions to Markings

    a. AUTO Marking. Non-carrier route automation rate First-Class Mail 
and Standard Mail (A) pieces do not require an ``AUTO'' marking if they 
bear a DPBC in the address block or on an insert visible through a 
window in the address block or lower right corner. Non-carrier route 
automation rate First-Class pieces not marked ``AUTO'' must bear both 
the ``Presorted'' and ``First-Class'' markings. Non-carrier route 
automation rate Standard Mail (A) pieces not marked ``AUTO'' must bear 
the appropriate basic marking for Standard Mail in 2.1a.
    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece as required in 2.1a. The two-letter rate category 
code required in the keyline on manifest mailing pieces prepared under 
P710 meets the requirement for other rate markings (e.g., on a First-
Class piece mailed at automation carrier route rates, the ``AC'' code 
may replace the ``AUTOCR'' marking).
3.0  Placement of Markings--Standard Mail (B)

3.1  Basic Markings

    The basic required marking that indicates the subclass--``Bound 
Printed Matter;'' ``Special Standard Mail'' or ``SPEC STD,'' ``Library 
Rate'' or ``Library Mail''--must be printed on the mailpiece. Effective 
January 10, 2000, these basic required markings must be printed or 
produced as part of, or directly below or to the left of, the permit 
imprint indicia or meter stamp or impression. The markings ``Parcel 
Post'' or ``PP'' also must be printed or produced as part of, or 
directly below or to the left of, the permit imprint indicia or meter 
stamp or impression. These Parcel Post markings are required for drop 
shipment rate mail and, effective January 10, 2000, will be required 
for all Parcel Post mail.

3.2  Other Parcel Post Markings

    The required markings ``Drop Ship'' or ``D/S'' for Parcel Post drop 
shipment rate mail may be placed in the postage area location specified 
in 3.1. Alternatively, it may be placed in the address area on the line 
directly above or two lines above the address if the marking appears 
alone (no other information appears on that line). Until January 10, 
2000, mail qualifying for the DBMC rate may bear the marking ``DBMC 
Parcel Post'' or ``DBMC PP'' in either location.

3.3 Other Bound Printed Matter Markings

    The required markings ``Presorted'' (or ``PRSRT'') or ``Presorted 
Standard'' (or ``PRSRT STD'') or ``Carrier Route Presort'' (or ``CAR-RT 
SORT'') may be placed in the location specified in 3.1. Alternatively, 
these markings may be placed in the address area on the line directly 
above or two lines above the address if the marking appears alone or if 
no other information appears on the line with the marking except postal 
optional endorsement line information under M013 or postal carrier 
route package information under M014.

3.4  Other Special Standard Markings

    The required ``Presorted'' or ``PRSRT'' for Special Standard mail 
may be placed in the location specified in 3.1. Alternatively, it may 
be placed in the address area on the line directly above or two lines 
above the address if the marking appears alone (no other information 
appears on that line).
* * * * *

M032  Barcoded Labels

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

1.3  Content Line (Line 2)

[Amend Exhibit 1.3a by deleting the following headings and all 
information under them: Priority Mail Letters--Presorted; Priority Mail 
Flats--Presorted; and Priority Mail Parcels--Presorted.]
[Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER 
Letters--\3/5\ and Basic'' to ``PER Letters--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER 
Flats--\3/5\ and Basic'' to ``PER Flats--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Periodicals (PER), by changing the heading ``PER 
Parcels--\3/5\ and Basic'' to ``PER Parcels--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS 
Letters--\3/5\ and Basic'' to ``NEWS Letters--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS 
Flats--\3/5\ and Basic'' to ``NEWS Flats--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Periodicals (NEWS), by changing the heading ``NEWS 
Parcels--\3/5\ and Basic'' to ``NEWS Parcels--5-Digit, 3-Digit, and 
Basic.'']
[Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk 
Bound Printed Matter Flats--Carrier Route'' to ``Bound Printed Matter 
Flats--Carrier Route'']
[Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk 
Bound Printed Matter Flats--Basic'' to ``Presorted Bound Printed Matter 
Flats--Basic'']
[Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk 
Bound Printed Matter Irregular Parcels--Carrier Route'' to ``Bound 
Printed Matter Irregular Parcels--Carrier Route'']
[Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk 
Bound Printed Matter Irregular Parcels--Basic'' to ``Presorted Bound 
Printed Matter Irregular Parcels--Basic'']

[Amend Exhibit 1.3a, Standard Mail (B), by changing the heading ``Bulk 
Bound Printed Matter Machinable Parcels--Basic'' to ``Presorted Bound 
Printed Matter Machinable Parcels--Basic'']

[Amend Exhibit 1.3a, Standard Mail (B), by inserting a new Parcel Post 
category after Parcel Post Machinable Parcels to read as follows:]

[[Page 37987]]



------------------------------------------------------------------------
                                                  Human-readable        
           Class and mailing            --------------------------------
                                           CIN         Content line     
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------
                      Parcel Post DSCF and DDU Rates                    
------------------------------------------------------------------------
5-digit sacks..........................      688  STD B 5D              
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

M033  Sacks and Trays

1.0  BASIC STANDARDS

1.2  Equipment

[Revise 1.2c to reflect the new 13-ounce weight limit for First-Class 
Mail to read as follows:]
    Mailings must be prepared in the container appropriate for the 
processing category and rate of the mail as follows:
* * * * *
    c. First-Class Mail parcels weighing less than 13 ounces must be 
prepared in green USPS sacks.
* * * * *

M041  General Standards

* * * * *
4.0  PALLET BOXES
[Revise 4.1, 4.2, and 4.4 to read as follows:]

4.1  Use

    A mailer may use pallet boxes constructed of single-, double-, or 
triple-wall corrugated fiberboard placed on pallets to hold sacks or 
parcels prepared under M045. Pallet boxes must protect the mail and 
maintain the integrity of the pallet loads throughout transportation, 
handling, and processing. Single-wall corrugated fiberboard may be used 
only for light loads (such as lightweight parcels) that do not require 
transportation by the USPS beyond the entry office, or for Parcel Post 
DSCF rate mail. Mailers must supply their own pallet boxes. The base of 
the boxes must measure approximately 40 by 48 inches. M045 requires the 
use of pallet boxes meeting the size requirements in 4.2 for machinable 
Parcel Post claiming OBMC Presort and BMC Presort discounts. M045 
prohibits use of pallet boxes for nonmachinable Parcel Post claiming 
OBMC Presort and BMC Presort discounts. Pallet boxes meeting the size 
dimensions in 4.2 also may be used at the mailer's option for Parcel 
Post DSCF and Parcel Post DDU rate mail.

4.2  Height

    The combined height of a single pallet, pallet box, and mail may 
not exceed 77 inches. The contents of the box may not extend above the 
top rim of the box. For Parcel Post DSCF and Parcel Post DDU rate 
mailings, the height of the pallet box may not exceed 60 inches 
(excluding the pallet). For Parcel Post OBMC Presort and BMC Presort 
rate mailings of machinable pieces, the height of the pallet box must 
be 69 inches (excluding the pallet).
* * * * *

4.4  Nonconforming

    Except when mailing Parcel Post claiming a DSCF or DDU rate, a 
nonconforming mailer (see 1.4) may use pallet boxes only if the boxes 
are constructed of triple-wall corrugated fiberboard (C-flute and/or B-
flute material) with a maximum height (pallet and box) of 77 inches.
5.0  PREPARATION
* * * * *

5.2  Required Preparation

[Revise text of 5.2 to read as follows:]
    These standards apply to:
    a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC 
Presort, OBMC Presort, DSCF and DDU rate mail). [Insert current 5.2.]
    b. Parcel Post Mailed at BMC Presort, OBMC Presort, DSCF and DDU 
Rates. Pallets must meet the requirements specifically prescribed for 
these rates in M045.

5.3  Minimum Load

[Revise text of 5.3 to read as follows.]
    These standards apply to:
    a. Periodicals, Standard Mail (A), and Parcel Post (Other than BMC 
Presort, OBMC Presort, DSCF and DDU Rate Mail). [Insert current 5.3.]
    b. Parcel Post Mailed at BMC Presort, OBMC Presort, DSCF and DDU 
Rates.
    A minimum load for the rate claimed may be stated in terms of 
weight, combined piece minimum and weight, or minimum height. M045 
specifies separate minimum mail heights for machinable parcels and for 
nonmachinable parcels claimed at OBMC Presort and BMC Presort rates. 
Mail entered at the Parcel Post DSCF rates and prepared directly on 
pallets or in pallet boxes on pallets must be prepared under either a 
minimum height requirement or under one of two options requiring a 
minimum number of pieces and pounds per pallet under M045. There is no 
minimum weight requirement for an SCF pallet containing 5-digit sacks 
prepared for the DSCF rate under M630 (see M045). There are no minimums 
for the Parcel Post DDU rate.

[Renumber current 5.4 through 5.7 as 5.5 through 5.8, respectively. 
Insert new 5.4 to read as follows:]

5.4  Minimum Height of Mail

    The definitions of the minimum height of mail used to qualify for 
OBMC Presort, BMC Presort and DSCF Parcel Post rates are:
    a. Machinable Parcels at OBMC Presort and BMC Presort Discounts and 
Parcels at DSCF Rates. The minimum height of mail in a pallet box is 
the shortest vertical distance measured from the bottom of a pallet box 
to the top of the lowest mailpiece. The height of the pallet is not 
included in this measurement.
    b. DSCF Rates and Nonmachinable Parcels at OBMC Presort and BMC 
Presort Discounts. The minimum height of mail on a pallet is the 
shortest vertical distance measured from the top of the pallet to the 
top of the lowest mailpiece. The height of the pallet is not included 
in this measurement.
* * * * *

M045  Palletized Mailings

* * * * *
2.0  PACKAGES OF FLATS
* * * * *

2.4  Size--Standard Mail (B)

[In 2.4c to change the phrase ``bulk Bound Printed Matter'' to 
``presorted Bound Printed Matter.]
* * * * *
[Add sections 9.0 through 12.0 to specify preparation requirements for 
the new BMC Presort, OBMC Presort, DSCF, and DDU rates as follows:]
9.0  PARCEL POST--BULK MAIL CENTER (BMC) PRESORT DISCOUNT

9.1  Machinable Parcels

    a. To qualify for the BMC Presort discount, machinable pieces must 
be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box 
must contain at least 52 inches of mail (not including pallet) for a 
BMC (see M041). Overflow pallet boxes are not permitted. Preparation in 
sacks, directly on pallets, or in other containers is not permitted.
    b. Pallet Box preparation and Line 1 labeling: destination BMC 
(required); for Line 1 use L601.
    c. Pallet Box Line 2 labeling: ``STD B MACH BMC.''

9.2  Nonmachinable Parcels

    a. To qualify for the BMC Presort discount, nonmachinable pieces 
must

[[Page 37988]]

be sorted to BMCs and ASFs under L605 directly on pallets. Each pallet 
for a BMC or ASF destination must have a minimum height of 42 inches of 
mail (not including the height of the pallet) (see M041). Overflow 
pallets are not allowed. Preparation in sacks, pallet boxes, or in 
other containers is not permitted.
    b. Pallet preparation and Line 1 labeling: destination BMC or 
destination ASF (required); for line 1, use L605.
    c. Pallet Line 2 labeling: ``STD B NON MACH BMC'' or ``STD B NON 
MACH ASF,'' as appropriate.
10.0  PARCEL POST--ORIGIN BULK MAIL CENTER PRESORT (OBMC PRESORT) 
DISCOUNT

10.1  Machinable Parcels

    a. To qualify for the OBMC Presort discount, machinable pieces must 
be sorted to BMCs under L601 in 69-inch pallet boxes. Each pallet box 
must contain at least 52 inches of mail (not including pallet) for a 
BMC (see M041). Overflow pallet boxes are not permitted. Preparation in 
sacks, directly on pallets, or in other containers is not permitted.
    b. Pallet Box preparation and Line 1 labeling: destination BMC 
(required); for Line 1, use L601.
    c. Pallet Box Line 2 labeling: ``STD B MACH BMC.''

10.2  Nonmachinable Parcels

    a. To qualify for the OBMC Presort discount, nonmachinable pieces 
must be sorted to BMCs and ASFs under L605 directly on pallets. Each 
pallet for a BMC or ASF destination must have a minimum height of 42 
inches of mail (not including the height of the pallet) (see M041). 
Overflow pallets are not allowed. Preparation in sacks, pallet boxes, 
or in other containers is not permitted.
    b. Pallet preparation and Line 1 labeling: destination BMC or 
destination ASF (required); for line 1, use L605.
    c. Pallet Line 2 labeling: ``STD B NON MACH BMC'' or ``STD B NON 
MACH ASF,'' as appropriate.
11.0  PARCEL POST DSCF RATES--PARCELS ON PALLETS

11.1  Basic Preparation, Parcels on Pallets

    Unless prepared under 11.2, or in sacks under M630, mail must be 
prepared for the DSCF rate as follows:
    a. General. Parcels for each SCF area must be sorted to 5-digit ZIP 
Codes on pallets. For purposes of this section the term pallets 
includes preparation of parcels directly on pallets and preparation of 
parcels in pallet boxes on pallets. Except when prepared under 11.2, 
each 5-digit pallet must meet a minimum volume requirement under one of 
the criteria in 11.1b. Machinable and nonmachinable pieces may be 
combined on the same pallet or in the same overflow sack. In a single 
mailing mailers may prepare some pallets under the minimum volume 
requirement in 11.1b(1) and some pallets under the minimum volume 
requirement in 11.1b(2). A mailing entered at a destination SCF 
facility containing pallets prepared under 11.1 also may include mail 
that is sacked for the DSCF rate under M630. Double-stacking is 
permitted if the requirements of M041 are met.
    b. Minimum Volume. The minimum volume per 5-digit pallet can be met 
in one of the following ways.
    (1) pieces may be placed on 5-digit pallets each containing at 
least 50 pieces and 250 pounds, or
    (2) pieces can be placed on 5-digit pallets each having a minimum 
height of 36 inches of mail (not including the height of the pallet) 
(see M041).
    c. Overflow. If after filling a pallet or pallets to a 5-digit 
destination, pieces remain that do not meet the minimum pallet 
requirements they may be prepared in one of the following ways. One or 
both methods may be used in a single mailing.
    (1) Placed in 5-digit overflow sacks (no minimum number of pieces 
per sack) that are labeled in accordance with the 5-digit sacking 
requirements for the DSCF rate in M630. Overflow pieces sacked in this 
manner are eligible for the DSCF rates.
    (2) Placed on a 5-digit pallet labeled under 11.1d that does not 
meet the minimums for the DSCF rate. Overflow pieces palletized in this 
manner are not eligible for the DSCF rates but are eligible for the 
DBMC rates.
    d. 5-digit pallet labeling:
    (1) for Line 1, use city, state, and 5-digit ZIP Code destination 
of contents.
    (2) for Line 2 use: ``STD B 5D.''
    e. Separation. If sacks prepared under M630 are included in the 
same mailing as pallets prepared under this section, at the time of 
acceptance the mailer must separate sacks that are overflow from 
palletized mail from those sacks that were prepared under the 
provisions of M630.

11.2  Alternate Preparation, Parcels on Pallets

    DSCF rate mailings not prepared under 11.1 may be prepared as 
follows:
    a. General. All DSCF rate mail in the mailing must be sorted to 5-
digits under 11.2 (i.e., mail prepared under 11.1 and mail sacked under 
M630 must not be included in a mailing prepared under 11.2). For 
purposes of this section the term pallets includes preparation of 
parcels directly on pallets and preparation of parcels in pallet boxes 
on pallets. Machinable and nonmachinable pieces may be combined on the 
same pallet or in the same overflow sack. The documentation in 11.2e 
must be presented at the time of verification. Double-stacking is 
permitted if the requirements of M041 are met.
    b. Minimum Volume. To qualify for the DSCF rate, no pallet may 
contain fewer than 35 pieces and 200 pounds, and for the entire mailing 
the average number of DSCF rate pieces per 5-digit pallet must be at 
least 50.
    c. Overflow. If after filling a pallet or pallets to a 5-digit 
destination, pieces remain that do not meet the minimum pallet 
requirement they may be prepared in one of the following ways. One or 
both methods may be used in a single mailing.
    (1) Placed in 5-digit overflow sacks (no minimum number of pieces 
per sack) that are labeled in accordance with the DSCF sacking 
requirements in M630. Overflow pieces sacked in this manner are 
eligible for the DSCF rates.
    (2) Placed on a 5-digit pallet labeled under 11.2d that does not 
meet the minimums for the DSCF rate. Overflow pieces palletized in this 
manner are not eligible for the DSCF rates but are eligible for the 
DBMC rates.
    d. 5-digit pallet labeling:
    (1) For Line 1, use city, state, and 5-digit ZIP Code destination 
of contents.
    (2) For Line 2 use: ``STD B 5D.''
    (3) In mailer area below line 3: the pallet ID number.
    e. Documentation. A list of each 5-digit pallet in the mailing that 
qualifies for the DSCF rate must be submitted. The pallets in the 
mailing that qualify for the DSCF rate must be numbered sequentially, 
and this pallet identification number must be printed below Line 3 on 
the pallet label. The documentation must list each pallet in sequential 
order by pallet identification number. The listing must show for each 
pallet the pallet identification number, the 5-digit ZIP Code of the 
pallet, the total weight of pieces on the pallet, the total number of 
pieces on the pallet, and the cumulative total of pieces (i.e., the 
number equal to the number of pieces for that pallet plus the sum of 
the pieces on all pallets listed above it). This documentation must not 
include: pieces prepared in overflow sacks at the DSCF rate, and pieces 
prepared on overflow pallets at the DBMC rates, or pieces claimed at 
any other rate in the mailing.

[[Page 37989]]

11.3  5-Digit ZIP Codes for Which Pallets May Not Be Prepared

    Refer to the Drop Shipment Product available from the National 
Customer Support Center (NCSC) (see G043) and to Exhibits E652.6.0 and 
E652.7.0 to determine if the facility serving the 5-digit destination 
can handle pallets. There is a charge for the Drop Shipment Product. If 
a facility cannot handle pallets, the DSCF rate is not applicable 
unless the mail can be prepared under the sacking requirement in M630.

11.4  5-Digit ZIP Codes Requiring BMC Entry

    Refer to Exhibit E652.5.0 for 5-digit destinations where palletized 
mail must be entered at the BMC that serves the SCF to obtain the DSCF 
rate.
12.0  PARCEL POST DSCF RATES--SACKS ON PALLETS
    Mailers who prepared DSCF rate mail in 5-digit sacks under M630 may 
place 5-digit sacks for the same SCF area on an SCF pallet (including a 
pallet box on a pallet). Mailers who prepare overflow from pallets 
under 11.1 or 11.2 may place 5-digit sacks for the same SCF area on an 
SCF pallet (including a pallet box on a pallet). See 11.1e for 
requirements concerning separation of sacks prepared under M630 from 
sacks prepared under 11.1. There are no pallet minimums for such 
pallets. Mailers may prepare such SCF pallets without having to prepare 
all possible 5-digit pallets prior to preparing the SCF pallet. The 
pallets must be labeled in the following manner:
    Line 1: Use L002, Column C
    Line 2: STD B PP 5D SACKS
13.0  PARCEL POST DDU RATES
    Parcels may be bedloaded, sacked, or palletized. For purposes of 
this section the term pallets includes preparation of parcels directly 
on pallets and preparation of parcels in pallet boxes on pallets. There 
are no preparation or presort requirements for DDU rate mailings other 
than separation by 5-digit. If pieces are sacked or palletized, they 
must be prepared to 5-digits and labeled as follows: Line 1 labeling--
use city, state, and 5-digit ZIP Code destination; Line 2 use ``STD B 
5D.'' Machinable and nonmachinable pieces may be combined. Refer to the 
Drop Shipment Product maintained by the National Customer Support 
Center (NCSC) (see G043) and the information in E652 including Exhibits 
E652.6.0 and E652.7.0 to determine the location of the 5-digit delivery 
facility, whether that facility can handle pallets (including pallet 
boxes on pallets). If a DDU facility cannot handle pallets, and a 
mailer transports mail to the DDU facility on pallets, the driver must 
unload the pallets into a container specified by the delivery unit.

M050  Delivery Sequence

* * * * *
4.0  DOCUMENTATION
[Revise 4.1 and 4.2 to read as follows:]

4.1  General

    The mailer must provide documentation as described below to 
substantiate compliance with the standards for carrier sequencing. 
Unless the documentation is submitted with the corresponding mailing, 
the mailer must be able to provide the USPS with documentation of 
accurate sequencing or delivery statistics for each carrier route to 
which walk-sequence rate pieces are mailed. The mailer must annotate 
the postage statement to show the earliest (oldest) date of the method 
(in 41.a through 4.1e) used to obtain sequencing of delivery stop 
information for the mailing. For Periodicals the postage statement must 
be annotated in the ``Sequencing Date'' block on each of the lines 
where high density and saturation per piece rate postage is reported. 
For Standard Mail (A) the postage statement must be annotated in the 
``Sequencing Date'' block on the front of the postage statement where 
total postage for Enhanced Carrier Route rates is reported. One or more 
of these must be submitted:
    a. CDS invoice.
    b. DSF invoice or DSF documentation.
    c. Copies of the delivery unit summaries that served as the 
mailer's bills for address sequencing service charges.
    d. Evidence of receipt of information from postmasters under A930 
for simplified address mailings.
    e. Date LOT product used.

4.2  High Density

    The following documentation must be submitted for high density rate 
mail:
    a. Standard Mail (A) and Periodicals Other than In-County Mail 
Qualifying Under E230.6.4c. For each carrier route to which high 
density rate mail is addressed, the mailer must document the total 
number of addressed pieces to the route. If there are fewer than 125 
addressed pieces for a given route, the documentation also must show 
the number of possible deliveries on the route.
    b. Periodicals In-County Mail Qualifying Under E230.6.4c. For each 
carrier route for which Periodicals In-County high density rates are 
claimed under the minimum 25% of the total active possible deliveries 
per carrier route under E230.6.4c, the documentation must show for each 
carrier route for which the rates are claimed the total number of 
active possible deliveries and the number and percentage of deliveries 
to which mailpieces are addressed. The documentation must be listed by 
5-digit ZIP Code and, within each, by carrier route. It must be 
submitted with each applicable mailing.
* * * * *

M070  Mixed Classes

* * * * *

M072  Express Mail and Priority Mail Drop Shipment

1.0  BASIC STANDARDS
1.1  Standards
[Revise 1.1 by adding references to M072 and D071 to read as follows:]
    The Express Mail or Priority Mail portion of the shipment must meet 
the standards in M500 or M100 respectively, and the applicable 
standards in M072 and D071.
* * * * *
2.0  ADDITIONAL STANDARDS FOR ENCLOSED MAIL
2.5  Standard Mail (B)
[Amend 2.5 to delete the reference to ``Bulk Parcel Post,'' to change 
the phrase ``bulk Bound Printed Matter'' to ``presorted Bound Printed 
Matter,'' to add and exception to the zone separation requirement, and 
to add information on new Parcel Post DSCF and DDU rates to read as 
follows:]
    Presorted Bound Printed Matter paid with meter or permit imprint, 
or single-piece rate Parcel Post or Bound Printed Matter paid with 
permit imprint, must be sorted by zone in separate Priority Mail or 
Express Mail pouches unless presented under a special postage payment 
system under P710, P720, or P730. If the enclosed mail is not presented 
under a special postage payment system under P710, P720, or P730, the 
Priority Mail or Express Mail pouches must be separated into groups by 
postal zone when presented to the USPS. For Parcel Post mail, the DBMC, 
DSCF, or DDU entry rate may be claimed subject to E652 and the 
destination of the Express Mail or Priority Mail sack.
* * * * *
[Revise the title of M073 to read as follows:]

[[Page 37990]]

M073  Combined Mailings of Standard Mail (A) and Standard Mail (B) 
Parcels

[Revise the title of 1.0 to read as follows:]
1.0  COMBINED MACHINABLE PARCELS--RATES OTHER THAN PARCEL POST OBMC 
PRESORT, BMC PRESORT, DSCF, AND DDU
[Renumber current 1.1 as 1.2, insert new 1.1, and revise section 
numbers in renumbered 1.2 to read as follows:]

1.1  Qualification

    Machinable Standard Mail (A) and machinable Standard Mail (B) 
parcels may be combined under the sortation and other requirements in 
1.0 except when claiming the following Parcel Post rates or discounts: 
OBMC Presort, BMC Presort, DSCF, and DDU. When claiming the OBMC 
Presort, BMC Presort, or DSCF rates, machinable Standard Mail (A) and 
machinable Standard Mail (B) parcels may be combined under the 
sortation and other requirements in 2.0. Standard Mail (A) parcels must 
not be combined with Standard Mail (B) parcels prepared for DDU rates.

1.2  Description

    Subject to 1.1 and authorization under 1.5, a mailer who is 
authorized plant load or plant-verified drop shipment privileges may 
prepare a combined mailing of Standard Mail (A) and Standard Mail (B) 
machinable parcels that have been merged and sorted together in sacks 
(under 1.5) or on pallets (under M040) to achieve the finest presort 
level. The combined mailing must meet the standards in 1.0 and those 
that apply to the rates claimed. Each parcel in a combined mailing is 
subject to the applicable Standard Mail rate, based on the 
corresponding standards. Required volume for bulk or presort rates is 
based solely on the quantity of pieces eligible for each rate at the 
required presort level. Pieces claimed at other rates in the same sack 
or on the same pallet do not count.

[Renumber existing 1.2 and 1.3 as 1.3 and 1.4, respectively.]

[Renumber existing 2.0 as 1.5. Renumber existing 2.1 through 2.3 as 
1.5a through 1.5c, respectively.]

[Renumber existing 3.0 as 1.6. Renumber existing 3.1 as 1.6a and 
existing 3.1a through 3.1d as 1.6a(1) through a(4), respectively. 
Renumber existing 3.2 as 1.6b and existing 3.2a through 3.2e as 1.6b(1) 
through 1.6b(5), respectively.]

[Add 2.0 to read as follows:]
2.0  COMBINED PARCELS--PARCEL POST OBMC PRESORT, BMC PRESORT, AND DSCF 
RATES

2.1  Qualification

    a. When claiming Parcel Post OBMC Presort and BMC Presort discounts 
and DSCF rates, machinable Standard Mail (A) parcels may be combined 
with machinable Standard Mail (B) parcels under 2.0.
    b. When claiming the Parcel Post DSCF rate, machinable and 
nonmachinable Standard Mail (A) may be combined with machinable and 
nonmachinable Standard Mail (B) parcels under 2.0.
    c. Standard Mail (A) parcels may not be combined with Standard Mail 
(B) parcels prepared for DDU rates.

2.2  Authorization

    Mailers must be authorized under 1.5 to prepare mailings that 
combine Standard Mail (A) and Standard Mail (B) parcels.

2.3  Postage Payment

    Postage for all pieces must be paid with permit imprint at the post 
office serving the mailer's plant under an approved manifest mailing 
system under P710. The applicable agreement must include procedures for 
combined mailings approved by the RCSC.

2.4  Preparation and Rates

    a. Minimum Mailing Volume. Separate minimum mailing volume 
requirements must be met for Standard Mail (A) parcels and for Standard 
Mail (B) parcels.
    b. Parcel Post Qualifying for DSCF Rates. The combined mailings 
must be prepared under the applicable 5-digit sack requirements in 
M630, or the applicable 5-digit pallet requirements in M040 for the 
Parcel Post DSCF rates. All other requirements for the Parcel Post DSCF 
rates and the Presorted Standard Mail (A) rates, as applicable, must be 
met. The following additional requirements apply:
    (1) If sacked under M630, the minimum requirement of 7 pieces per 
sack must be met with only Standard Mail (B) parcels. After the minimum 
sack volume has been met, Standard Mail (A) parcels may be included in 
the sack or in overflow sacks.
    (2) If palletized under the option to prepare 5-digit pallets when 
there are at least 50 pieces and 250 pounds per pallet, this pallet 
minimum must be met with only Standard Mail (B) parcels. After the 
minimum pallet volume has been met, Standard Mail (A) parcels may be 
included on the pallet or in overflow sacks.
    (3) If palletized under the alternate pallet preparation where no 
pallet may contain fewer than 35 pieces and 200 pounds provided the 
average number of pieces on pallets qualifying for the DSCF rate is at 
least 50, Standard Mail (A) parcels may not be combined with Standard 
Mail (B) parcels.
    (4) If palletized under the option to prepare 5-digit pallets under 
the 36-inch high (mail only) pallet minimum, any combination of 
Standard Mail (A) and Standard Mail (B) parcels may be used to meet the 
minimum pallet height requirement.
    (5) Line 2 of 5-digit pallet and sack labels must read: ``STD A/B 
5D.''
    (6) Standard Mail (A) parcels are eligible for the Presorted 3/5 
rate.
    c. Parcel Post Qualifying for OBMC Presort or BMC Presort rates. 
The combined mailings must be prepared under the M040 BMC pallet 
requirements for machinable parcels at Parcel Post OBMC Presort or BMC 
Presort rates. All other requirements for the Parcel Post OBMC Presort 
or BMC Presort rates and the Presorted Standard Mail (A) rates must be 
met. The following additional requirements apply:
    (1) The minimum height requirement for each pallet or pallet box on 
a pallet may be met using any combination of Standard Mail (A) and 
Standard Mail (B) parcels.
    (2) Line 2 of BMC pallet box labels must read: ``STD A/B MACH 
BMC.''
    (3) Standard Mail (A) parcels are eligible for the Presorted \3/5\ 
rate only if it can be shown by documentation that there was 
insufficient volume of Standard Mail (A) parcels in the mailing to 
prepare separate 5-digit pallets required for Standard Mail (A) 
machinable parcels under M045. Otherwise, Presorted basic rates apply 
to the Standard Mail (A) parcels.

2.5  Documentation

    Presort documentation is required as applicable for each rate 
claimed if the manifest does not list pieces in presort order. Separate 
postage statements must be prepared for the Standard Mail (A) and 
Standard Mail (B) pieces. Within each group, combined forms may be 
prepared where the standards and the forms permit. All postage 
statements must be provided at the time of mailing.
* * * * *

M120  Priority Mail

* * * * *
[Delete 2.0.]

M130  Presorted First-Class Mail

* * * * *

[[Page 37991]]

[Revise the title of 2.0 to read as follows:]
2.0  REQUIRED PREPARATION--LETTER-AND CARD-SIZE PIECES
* * * * *
[Revise the title of 3.0 to read as follows:]
3.0  OPTIONAL UPGRADABLE PREPARATION--LETTER-AND CARD-SIZE PIECES
* * * * *
5.0  PARCELS

5.1  Standards

[Revise 5.1 to reflect the new 13-ounce weight limit for First-Class 
Mail to read as follows:]
    First-Class parcels weighing 13 ounces or less, except Priority 
Mail, must be prepared under the standards below. All Priority Mail, 
including any First-Class parcel weighing more than 13 ounces must be 
must be prepared under the applicable standards in M120.
* * * * *

M200  Periodicals (Nonautomation)

1.0  BASIC STANDARDS
* * * * *
[Delete 1.6.]
* * * * *
3.0  SACK PREPARATION (FLAT-SIZE PIECES AND IRREGULAR PARCELS)

3.1  Sack Preparation

[Revise 3.1d and 3.1e to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    d. 3-digit: required at 24 pieces, optional with one six-piece 
package minimum except under 1.5; for Line 1, use L002, Column A.
    e. 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.
* * * * *

M600  Standard Mail (Nonautomation)

[Amend the title of M610. Delete 610.1.0 and renumber 610.2.0 through 
610.7.0 as 610.1.0 through 610.6.0, respectively. Make other revisions 
as shown below for clarity and to change ``nonautomation'' rate to 
``Presorted Standard'' rate and change ``Bulk Rate'' to ``Presorted 
Standard.'']

M610  Presorted Standard Mail (A)

1.0  BASIC STANDARDS

1.1  All Mailings

    All mailings at Presorted Standard rates (3/5 and basic) are 
subject to specific preparation standards in 2.0 through 6.0 and to 
these general standards (automation rate mail must be prepared under 
M810 or M820, as applicable):
    a. Each mailing must meet the applicable standards in E620 and in 
M010, M020, and M030.
* * * * *
    e. Subject to M012, all pieces eligible for and claimed at 
Nonprofit Presorted Standard rates must be marked ``Nonprofit 
Organization'' (or ``Nonprofit Org.'' or ``Nonprofit''). Regular 
Presorted Standard pieces must be marked ``Presorted Standard'' (or 
``PRSRT STD'') or, until January 10, 2001, ``Bulk Rate'' (or ``Blk. 
Rt.''). Pieces mailed at Nonprofit or Regular Presorted Standard rates 
must not bear ``ECRWSS,'' ``ECRWSH,'' ``ECRLOT,'' ``AUTO,'' ``AUTOCR,'' 
``Single-Piece'' or ``SNGLP'' markings.
* * * * *

1.3  Exception--Standard Mail (A)

    When the size of the pieces in a Standard Mail (A) mailing job 
allows them to qualify for preparation as either letters or automation 
flats and when part of the job is prepared as palletized automation 
flats, the remainder of the job may be prepared as palletized flats at 
Enhanced Carrier Route nonletter rates and Presorted nonletter rates if 
the number of Presorted rate pieces does not exceed 10% of the total 
number of pieces in the entire mailing job. Presorted rate pieces in 
the mailing job that exceed the 10% limit and therefore may not be 
palletized as flats must be prepared in trays as letter mail and must 
be paid for at the letter rates. A separate 200-piece minimum volume 
requirement must be met for the trayed letter mailing to qualify for 
Standard Mail (A) rates.

1.4  Processing Instructions

[Change the phrase ``nonautomation rate'' to ``Presorted rate'' to read 
as follows:]
    If a mailer prefers that the USPS not upgrade (automate) letter-
size or card-size pieces presented at a Presorted rate, the mailer must 
identify each tray of such mail with a facing slip or other device 
marked ``DO NOT AUTOMATE'' and (for letter-size mail) a tray label on 
which Line 2 includes ``Non-OCR.''

[Revise the title of 2.0 to read as follows:]
2.0  LETTER-SIZE PIECES--REQUIRED PREPARATION
* * * * *
[Revise the title of 3.0 to read as follows:]
3.0  LETTER-SIZE PIECES--OPTIONAL UPGRADABLE PREPARATION
* * * * *
6.0  BEDLOADED BUNDLES OF FLAT-SIZE PIECES

6.1  Authorization

[In the first sentence of 6.1, change ``nonautomation rate'' to 
``Presorted rate.'']
    The RCSC manager serving the post office where the mailing is to be 
made may authorize preparation of Presorted rate Standard Mail (A) in 
bundles that are outside sacks if this preparation benefits the USPS. * 
* *
* * * * *

M620  Enhanced Carrier Route Standard Mail

1.0  BASIC STANDARDS

1.1  All Mailings

[Revise 1.1a and 1.1e to read as follows:]
    All nonautomation rate Enhanced Carrier Route mailings are subject 
to these general standards (automation rate Enhanced Carrier Route 
mailings must be prepared under M810):
    a. Each mailing must meet the applicable standards in E620 and in 
M010, M020, and M030.
* * * * *
    e. Subject to M012, all pieces eligible for and claimed at 
Nonprofit rates must be marked ``Nonprofit Organization'' (or 
``Nonprofit Org.'' or ``Nonprofit''); all other pieces must be marked 
``Presorted Standard'' (or ``PRSRT STD''), or, until January 10, 2001, 
``Bulk Rate'' (or ``Blk. Rt.''). In addition, basic, high-density, and 
saturation rate pieces must each be marked ``ECRLOT,'' ``ECRWSH,'' or 
``ECRWSS,'' respectively. Pieces not claimed at the corresponding 
nonautomation Enhanced Carrier Route rate must not be marked 
``ECRLOT,'' ``ECRWSH,'' or ``ECRWSS.''
* * * * *

1.4  Exception--Standard Mail (A)

[In 1.4, change the phrase ``nonletter nonautomation rates'' to 
``Presorted rates,'' and make further clarifications to read as 
follows:]

    When the size of the pieces in a Standard Mail (A) mailing job 
allows them to qualify for preparation as either letters or automation 
flats and when part of the job is prepared as palletized

[[Page 37992]]

automation flats, the remainder may be prepared as palletized flats at 
Enhanced Carrier Route nonletter rates and Presorted nonletter rates if 
the number of Presorted rate pieces does not exceed 10% of the total 
number of pieces in the entire mailing job. Presorted rate pieces in 
the mailing job that exceed the 10% limit and therefore may not be 
palletized as flats must be prepared in trays as letter mail and must 
be paid for at the applicable letter rates. A separate 200-piece 
minimum volume requirement must be met for the trayed letter mailing to 
qualify for Standard Mail (A) rates.
* * * * *
5.0  RESIDUAL PIECES
    Pieces not sorted under 2.0 and either 3.0 or 4.0 must be prepared 
as a separate mailing at Standard Mail (A) automation or Presorted 
rates, or at single-piece First-Class or Priority Mail rates, as 
appropriate.
* * * * *

M630  Standard Mail (B)

[Amend 1.0 to add preparation requirements in 1.3-1.6 for new 
destination entry Parcel Post rates, introduce new drop ship markings, 
eliminate the ``Catalog'' marking, and make other marking changes to 
read as follows:]
1.0  PARCEL POST

1.1  Marking

[Amend 1.1 to provide for identifying Parcel Post pieces as follows:]

    Each piece mailed at the DBMC, DSCF, or DDU Parcel Post rates must 
be marked ``Parcel Post'' or ``PP'' and ``Drop Ship'' or ``D/S'' under 
M012. An exception is that until January 10, 2000, DBMC rate mail may 
be marked ``DBMC Parcel Post'' or ``DBMC PP.'' All other Parcel Post 
rate pieces may bear the ``Parcel Post'' or ``PP'' markings, and 
effective January 10, 2000, must bear the ``Parcel Post'' or ``PP'' 
marking under M012. Pieces not marked with the appropriate drop 
shipment marking as required are treated as single-piece rate Parcel 
Post and are subject to additional postage as necessary.

1.2  Separation

[Amend 1.2 to add requirements for the DSCF and DDU rate categories as 
follows:]
    Parcel Post pieces must be separated by zones when presented for 
acceptance unless either the correct postage is affixed to each piece 
or the mailing is prepared under 8.0, or presented under a special 
postage payment system under P710, P720, or P730. If sacks prepared 
under 1.5 are included in the same mailing as pallets prepared under 
M045, at the time of acceptance the mailer must separate sacks that are 
overflow from palletized mail from those sacks that were prepared under 
the provisions of 1.5.

1.3  Documentation

[Amend 1.3 to read as follows:]
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each bulk mailing (a mailing 
that includes pieces qualifying for rates that require a 50-piece 
minimum volume requirement). When presented for acceptance, 
documentation of postage by entry office and presort level (e.g.,. by 
BMC for DBMC, OBMC Presort and BMC Presort mail and by 5-digit ZIP Code 
for DSCF and DDU rates) is required under P710, P720, or P730. Except 
for DSCF rate mail palletized under the alternate preparation option 
that requires separate documentation, documentation is not required 
when the correct rate is affixed to each piece, or when each piece is 
of identical weight and the pieces are separated by zone and within 
each zone are grouped by pieces subject to the same combination of 
rates. DSCF rate mail palletized under the alternate preparation option 
in M045 must submit the detailed documentation required in M045.
[Add 1.4 for DSCF mailings as follows:]

1.4  DSCF Rate

    To qualify for the DSCF rate, pieces for the same SCF area (L002, 
Column C or L005) must be sorted to 5-digit ZIP Code destinations 
either in sacks under 1.5 or directly on pallets or in pallet boxes on 
pallets under M041 and M045. Pieces must be part of a mailing of at 
least 50 Parcel Post pieces. They must be entered at the designated SCF 
facility under L005 that serves the 5-digit ZIP Code destinations of 
the pieces except when palletized and entry is required at a BMC (see 
Exhibit E652.5.0). The DSCF rate is not available for palletized mail 
for facilities that are unable to handle palletized mailings. Refer to 
the Drop Shipment Product available from the National Customer Support 
Center (NCSC) (see G043) and Exhibit E652.6.0 and Exhibit E652.7.0 to 
determine if the facility serving the 5-digit destination can handle 
pallets. There is a charge for the Drop Shipment Product.

[Add 1.5 to describe sacking requirements for DSCF mailings as 
follows:]

1.5  DSCF Sack Preparation

    Sacking requirements for DSCF rates are as follows:
    a. Only 5-digit sacks are permitted.
    b. Each 5-digit sack must contain a minimum of 7 pieces (smaller 
volume not permitted). Machinable and nonmachinable pieces may be 
combined in the same sack to meet this requirement. One overflow sack 
per 5-digit ZIP Code is permitted (no piece minimum).
    c. Sack Line 1 labeling: use city, state, and 5-digit ZIP Code 
destination of pieces, preceded for military mail by the prefixes under 
M031.
    d. Sack Line 2: ``STD B 5D.''
    e. See M045 for option to place 5-digit DSCF sacks on an SCF 
pallet.
[Add 1.6 to describe preparation for DDU rate mailings as follows:]

1.6  DDU Rate

    The requirements for the DDU rate are as follows:
    a. For the DDU rate, pieces must be part of a mailing of at least 
50 Parcel Post pieces.
    b. The pieces must be entered by the mailer at the postal facility 
where the carrier delivers the parcels (delivery unit) as defined in 
E652.
    c. There are no minimum sacking or pallet preparation standards. 
DDU rate mailings may be bedloaded, sacked, placed directly on pallets 
or in pallet boxes on pallets. Machinable and nonmachinable pieces may 
be combined in the same sack or on the same pallet (including pallet 
boxes on pallets).
    d. If the delivery unit serves more than one 5-digit ZIP Code, the 
pieces must be separated by 5-digit ZIP Code when unloaded. Refer to 
the Drop Shipment Product available from the National Customer Support 
Center (see G043) and Exhibits E652.6.0 and E652.7.0 to determine the 
location of the delivery unit, whether it serves more than one 5-digit 
ZIP Code, and whether it can handle pallets. There is a charge for the 
Drop Shipment Product.
    e. If mail is sacked it must be labeled as follows.
    Line 1: City, state, and 5-digit ZIP Code destination, preceded for 
military mail by the prefixes under M031.
    Line 2: ``STD B 5D.''
2.0  BOUND PRINTED MATTER
* * * * *

2.3  Marking

[Revise 2.3 to provide for using new Bound Printed Matter markings as 
follows:]
    Each piece claimed at single-piece Bound Printed Matter rates must 
be marked ``Bound Printed Matter'' under M012. Each piece claimed at 
presorted Bound Printed Matter rates must be marked ``Bound Printed 
Matter'' and

[[Page 37993]]

either ``Presorted'' (or ``PRSRT'') or ``Presorted Standard'' (or 
``PRSRT STD'') under M012. Pieces not marked as required are treated as 
single-piece rate Parcel Post, subject to additional postage as 
necessary.
[Delete 2.4. Renumber existing 2.5 through 2.7 as 2.4 through 2.6, 
respectively.]
3.0  CARRIER ROUTE BOUND PRINTED MATTER
* * * * *

3.2  Marking

[Revise 3.2 to eliminate the markings ``Blk. Rt.'' and ``CATALOG'' as 
follows:]
    Each piece claimed at carrier route Bound Printed Matter rates must 
be marked ``Bound Printed Matter'' and ``Carrier Route Presort'' (or 
``Bound Printed Matter'' and ``CAR-RT SORT'') under M012. The mailer 
also may opt to include the marking ``Presorted'' (or ``PRSRT'') or 
``Presorted Standard'' (or ``PRSRT STD'') with the above required 
markings under M012. Residual pieces in a carrier route Bound Printed 
Matter mailing may have the ``Carrier Route Presort'' or ``CAR-RT 
SORT'' marking if the number of residual pieces to any single 5-digit 
ZIP Code area does not exceed 5% of the total qualifying carrier route 
rate pieces addressed to that 5-digit area. The residual pieces must be 
separated from the qualifying pieces when presented to the USPS. Pieces 
not marked as required are treated as single-piece rate Parcel Post and 
subject to additional postage as necessary.
* * * * *

3.7  Residual Pieces

[Amend the third sentence of 3.7 by replacing the phrase ``bulk Bound 
Printed Matter'' with ``presorted Bound Printed Matter.'']
4.0  SPECIAL STANDARD MAIL
* * * * *

4.2  Marking

[Revise 4.2 to add the marking ``PRSRT'' as follows:]
    Each piece claimed at Special Standard Mail rates must be marked 
``Special Standard Mail'' or ``SPEC STD'' under M012. Each piece 
claimed at presorted Special Standard Mail rates also must be marked 
``Presorted'' or ``PRSRT'' under M012. Pieces not marked as required 
are treated as single-piece Parcel Post, subject to additional postage 
as necessary.
* * * * *
5.0  LIBRARY MAIL
* * * * *

5.2  Marking

[Revise 5.2 to add a reference to M012 to read as follows:]
    Each piece of Library Mail must be marked ``Library Rate'' or 
``Library Mail'' under M012. Pieces not marked as required are treated 
as single-piece Parcel Post, subject to additional postage as 
necessary.
* * * * *

M800  All Automation Mail

M810  Letter-Size Mail

1.0  BASIC STANDARDS
* * * * *
[Amend 1.2 to delete the reference to 3/5 rates and to include 
information on mail qualifying for carrier route automation rates. 
Amend 1.2 and 1.3 to move information about postage statements and 
documentation from 1.2 to 1.3.]

1.2  Mailings

    The requirements for mailings are as follows:
    a. General. All pieces in a mailing must meet the standards in C810 
and must be sorted together to the finest extent required. The 
definitions of a mailing and permissible combinations are in M011.
    b. First-Class. A single automation rate First-Class mailing may 
include pieces prepared at carrier route, 5-digit, 3-digit, and basic 
automation rates.
    c. Periodicals. A single automation rate Periodicals mailing may 
include pieces prepared at 5-digit, 3-digit, and basic automation 
rates.
    d. Standard Mail (A). Pieces prepared to qualify for carrier route 
automation rates must be prepared as a separate mailing (meet a 
separate minimum volume requirement) from pieces prepared to qualify 
for 5-digit, 3-digit, and basic automation rates.

1.3  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing and must be 
supported by documentation produced by PAVE-certified (or, except for 
Periodicals, MAC-certified) software or by standardized documentation 
under P012. Mailers may use a single postage statement and a single 
documentation report for all rate levels in a single mailing. Standard 
Mail (A) mailers may use a single postage statement and a single 
documentation report for both an automation carrier route mailing and a 
mailing containing pieces prepared at 5-digit, 3-digit, and basic 
automation rates as applicable, submitted for entry at the same time. 
Documentation of postage is not required if the correct rate is affixed 
to each piece or if each piece is of identical weight and the pieces 
are separated by rate when presented for acceptance. Combined mailings 
of Periodicals publications also must be documented under M200.
* * * * *
3.0  PERIODICALS

3.1  Tray Preparation

[Amend 3.1a to read as follows:]
    Tray size, preparation sequence, and Line 1 labeling:
    a. 5-digit/scheme: optional, but 5-digit trays required for rate 
eligibility (150-piece minimum); overflow allowed; for Line 1, for 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.
* * * * *

M820  Flat-Size Mail

1.0  BASIC STANDARDS
* * * * *
[Amend 1.2 to add a reference to 5-digit and 3-digit rates. Amend 1.2 
and 1.3 to move information about postage statements and documentation 
from 1.2 to 1.3.]

1.2  Mailings

    All pieces in a mailing must meet the standards in C820 and must be 
sorted together to the finest extent required. First-Class Mail and 
Standard Mail (A) mailings may include pieces prepared at automation 3/
5 and basic rates, as applicable. Periodicals mailings may include 
pieces prepared at automation 5-digit, 3-digit, and basic rates, as 
applicable. The definitions of a mailing and permissible combinations 
are in M011.

1.3  Documentation

[Insert the following after the first sentence in 1.3:]
    * * * Mailers may use a single postage statement and a single 
documentation report for all rate levels in a single mailing. * * *
* * * * *
3.0  PERIODICALS
* * * * *

3.2  Sack Preparation

[Revise 3.2b and 3.2c to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. 3-digit: required at 24 pieces; optional with one six-piece 
package

[[Page 37994]]

minimum except under 1.7; for Line 1, use L002, Column A.
    c. 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.
* * * * *

P  Postage and Payment Methods

P000  Basic Information

P010  General Standards

P011  Payment

1.0  PREPAYMENT AND POSTAGE DUE

1.1  Prepayment Conditions

[Revise 1.1e to read as follows:]
    The mailer is responsible for proper payment of postage. Postage on 
all mail must be fully prepaid at the time of mailing, except as 
specifically provided by standard for:
* * * * *
    e. Keys and identification devices returned to owners (see E120 and 
E130).
* * * * *

1.5  Shortpaid Mail-Basic Standards

[Amend the first sentence of 1.5 by removing ``and nonstandard single-
piece Standard Mail (A)'' to read as follows:]
    Mail of any class, including mail indicating special services 
(except Express Mail, registered mail, and nonstandard First-Class 
Mail), which is received at either the office of mailing or office of 
address without enough postage is marked to show the total deficiency 
of postage and fees. * * *
* * * * *

1.8  Shortpaid Nonstandard Mail

[Amend 1.8 by removing ``nonstandard Single-Piece Standard Mail'' to 
read as follows:]
    Shortpaid nonstandard First-Class Mail is returned to the sender.
* * * * *
2.0  MAILABLE MATTER IN OR ON PRIVATE MAIL RECEPTACLES
* * * * *

2.3  Partial Distribution

[Amend 2.3 to reflect elimination of single-piece Standard Mail (A) 
rates to read as follows:]
    If there is a distribution of pieces to some, but not all, 
addresses on a route, pieces are returned to the delivery unit for use 
in computing the postage due. First-Class Mail rates are applied to 
matter that would require First-Class Mail postage if mailed. For other 
matter, if the piece weighs less than 16 ounces, the applicable single-
piece First-Class Mail or Priority Mail rate based on the weight of the 
piece is applied, or an applicable Standard Mail (B) rate is applied, 
whichever is lower. If the piece weighs 16 ounces or more, the Standard 
Mail (B) rate is applied.
* * * * *

P012  Documentation

* * * * *
2.0  STANDARDIZED DOCUMENTATION ( FIRST-CLASS MAIL, PERIODICALS, AND 
STANDARD MAIL (A)
* * * * *

2.3  Rate Level Column Headings

[Amend 2.3a and 2.3b to reflect the new separate 5-digit and 3-digit 
presort rate categories for Periodicals mail as follows:]
    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 2.2 and shown below:
    a. Automation First-Class Mail, Periodicals, and Standard Mail (A):

------------------------------------------------------------------------
                   Rate                             Abbreviation        
------------------------------------------------------------------------
Carrier Route [First-Class Mail letters/   CB                           
 cards].                                                                
5-Digit [First-Class Mail letters/cards,   5B                           
 Periodicals letters and flats, and                                     
 Standard Mail letters].                                                
3-Digit [First-Class Mail letters/cards,   3B                           
 Periodicals letters and flats, and                                     
 Standard Mail letters].                                                
3/5[First-Class Mail and Standard Mail     3/5B                         
 flats].                                                                
Basic [letters/cards and flats]..........  BB                           
------------------------------------------------------------------------

    b. Presorted First-Class Mail, nonautomation presorted Periodicals, 
and Standard Mail (A):

------------------------------------------------------------------------
                   Rate                             Abbreviation        
------------------------------------------------------------------------
Presorted [First-Class Mail letters/       Presort                      
 cards, flats, and parcels].                                            
5-Digit [Periodicals letters, flats, and   5D                           
 parcels].                                                              
3-Digit [Periodicals letters, flats, and   3D                           
 parcels].                                                              
3/5 [Standard Mail letters, flats, and     3/5                          
 parcels].                                                              
Basic [letters/cards and flats]..........  BS                           
------------------------------------------------------------------------

* * * * *

2.4  Sortation Level

[Amend 2.4 by deleting row ``Unique 3-Digit [Periodicals]'' and 
``3DGU'' and by revising the SCF sortation level to read as follows:]
    The actual sortation level (or corresponding abbreviation) is used 
for the package, tray, sack, or pallet levels required by 2.2 and shown 
below:

------------------------------------------------------------------------
             Sortation level                        Abbreviation        
------------------------------------------------------------------------
                                                                        
                  *        *        *        *        *                 
SCF [pallets, Periodicals flats, Bound     n/a                          
 Printed Matter].                                                       
                                                                        
                  *        *        *        *        *                 
------------------------------------------------------------------------

* * * * *

P013  Rate Application and Computation

1.0  BASIC STANDARDS
* * * * *

1.4  Affixing Postage--Single-Piece Rate Mailings

[Amend the first sentence of 1.4 by removing ``or Standard Mail (A)'' 
to read as follows:]
    In a postage-affixed single-piece rate Express Mail, First-Class 
Mail, or Priority Mail mailing, or in any postage-affixed Standard Mail 
(B) mailing, the mailer must affix to each piece a value in adhesive 
stamps, precanceled stamps, or meter impressions equal to at least the 
postage required for the piece. * * *
* * * * *
2.0  RATE APPLICATION--EXPRESS MAIL, FIRST-CLASS MAIL, AND PRIORITY 
MAIL
* * * * *
[Insert new 2.6 to read as follows:]

2.6  Keys and Identification Devices

    Keys and identification devices weighing 13 ounces or less are 
charged the First-Class Mail rates per ounce or fraction thereof in 
accordance with 2.3, plus a $0.30 fee. Keys and identification devices 
weighing more than 13 ounces but no more than 2 pounds are mailed at 
the 2-pound Priority Mail rate in accordance with 2.4, plus a $0.30 
fee.
* * * * *
4.0  RATE APPLICATION--STANDARD MAIL (A)
[Remove 4.1 and 4.2 and redesignate current 4.3 as the text of 4.0. 
Amend 4.0 to revise the breakpoints as follows:]
    Standard Mail (A) 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 Enhanced 
Carrier Route rate pieces weighing 0.2066 pound (3.3062 ounces) or 
less; Regular Presorted and automation rate pieces weighing 0.2068 
pound (3.3087 ounces)

[[Page 37995]]

or less; Nonprofit Enhanced Carrier Route rate pieces weighing 0.2069 
pound (3.3103 ounces) or less; and Nonprofit Presorted and automation 
rate pieces weighing 0.2055 pound (3.2873 ounces) or less.
    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) at Enhanced Carrier Route rates; weighing more than 
0.2068 pound (3.3087 ounces) at Regular Presorted and automation rates; 
weighing more than 0.2069 pound (3.3103 ounces) at Nonprofit Enhanced 
Carrier Route rates; and weighing more than 0.2055 pound (3.2873 
ounces) at Nonprofit Presorted and automation rates.
* * * * *
5.0  RATE APPLICATION--STANDARD MAIL (B)

5.1  Basis

    Postage is based on the rate that applies to the weight (postage) 
increment of each address piece, and where applicable, on the zone to 
which the piece is addressed.
* * * * *
[Delete current 5.6 and renumber current 5.7 as 5.6. Revise renumbered 
5.6 to change the name of the rate from ``bulk'' to ``presorted'' to 
read as follows:]

5.6  Presorted Bound Printed Matter

    The presorted Bound Printed Matter rate has a per-piece charge and 
a per-pound charge. The minimum postage rate for an addressed piece is 
one unit of the per-piece charge plus the per-pound charge for an 
addressed piece weighing 1 pound.
* * * * *
8.0  COMPUTING POSTAGE--STANDARD MAIL (A)
[Remove 8.1 and renumber current 8.2 through 8.5 as 8.1 through 8.4, 
respectively; no other changes.]
* * * * *
9.0  COMPUTING POSTAGE--STANDARD MAIL (B)

9.1  Mailing Weight

[In 9.1a revise the term ``bulk Bound Printed Matter'' to read 
``presorted Bound Printed Matter.'']
[Revise the title of 9.2 to read as follows:]

9.2  Total Postage--Presorted Bound Printed Matter

[In 9.2 revise the term ``bulk Bound Printed Matter'' to read 
``presorted Bound Printed Matter.'']
* * * * *

9.4  Computing Affixed Postage--Individual Pieces

[In the first and second sentences of 9.4 revise the term ``bulk Bound 
Printed Matter'' to read ``presorted Bound Printed Matter.'']

9.5  Permit Imprint

[In the first sentences of 9.5a and 9.5b revise the term ``bulk Bound 
Printed Matter'' to read ``presorted Bound Printed Matter.'']

P014  Refunds and Exchanges

* * * * *
2.0  POSTAGE AND FEES REFUNDS
* * * * *

2.3  Torn or Defaced Mail

[Amend 2.3 by removing ``Single-Piece Standard Mail'' as follows:]
    If First-Class Mail or Standard Mail (B) is torn or defaced during 
USPS handling so that the addressee or intended delivery point cannot 
be identified, the sender may receive a postage refund. This applies 
only when the failure to process and/or deliver is the fault of the 
USPS. Where possible, the damaged item is returned with the postage 
refund.
* * * * *

P030  Postage Meters and Meter Stamps

1.0  BASIC INFORMATION
* * * * *

1.5  Reply Postage

[Revise 1.5 to reflect the new 13-ounce weight limit for First-Class 
Mail to read as follows:]
    Meter stamps may prepay reply postage on Express Mail; Priority 
Mail when the rate is the same for all zones; First-Class postcards, 
letters, and flats up to a maximum of 13 ounces; single-piece rate 
Special Standard Mail; and Library Mail, under the following 
conditions:
* * * * *
    c. Postage on Priority Mail over 13, ounces, single-piece rate 
Special Standard Mail, or Library Mail may be paid only with meter-
stamped address labels.
* * * * *
5.0  MAILINGS

5.1  Notification of Metered Mailings Presented in Bulk

[Amend the names of the rates in the first sentence of 5.1 to read as 
follows:]
    Mailers who want to present Presorted First-Class Mail, Standard 
Mail (A), Parcel Post in bulk quantities, presorted Bound Printed 
Matter, Carrier Route Bound Printed Matter, or Presorted Special 
Standard Mail using metered postage must complete Form 3615. * * *
* * * * *

5.4  Place of Mailing

[Amend 5.4a by removing ``Standard Mail (A)'' to read as follows:]
    Except as noted below, metered mail must be deposited at a post 
office acceptance unit, retail unit, or other location designated by 
the postmaster of the licensing post office (i.e., the post office 
shown in the meter stamp) and may not be given to a delivery employee 
or deposited in a street collection box, mailchute, receiving box, 
cooperative mailing rack, or other mail collection receptacle. 
Exceptions to this general standard are listed below.
    a. Express Mail, Priority Mail (in a weight category for which 
rates do not vary by zone), or single-piece rate First-Class Mail, may 
be deposited in any street collection box or such other place where 
mail is accepted and that is served by the licensing post office.
* * * * *

P040  Permit Imprints

* * * * *
4.0  INDICIA Format

4.1  Basic Standard

* * * * *

Exhibit 4.1a  Indicia Formats for Mailgram and Official Mail

[Under the heading ``Standard Mail (A) Official Mail,'' delete the 
first example, in the second example change ``BULK RATE'' to ``PRSRT 
STD,'' and in the third example change ``BULK RATE AUTOCR'' to 
``PRESORTED STANDARD AUTOCR,'' add a new example that reads ``PRSRT 
STD, AUTO, POSTAGE AND FEES PAID, AGENCY NAME, PERMIT NO. G-999.'']
[Under the heading ``Standard Mail (B) Official Mail,'' in the third 
example change ``BULK RATE BOUND PRINTED MATTER'' to ``PRSRT BOUND 
PRINTED MATTER.'']

Exhibit 4.1b  Indicia Formats for First-Class Mail and Standard 
Mail

[Under the heading ``Standard Mail (A),'' in the first example change 
``BULK

[[Page 37996]]

RATE ECRWSS'' to ``PRESORTED STANDARD ECRWSS,'' in the second example 
change ``BULK RATE AUTOCR'' to ``PRESORTED STANDARD AUTOCR,'' in the 
third example change ``BLK RT AUTO'' to ``PRSRT STD AUTO,'' in the 
seventh and eighth examples change ``BULK RATE'' to ``PRESORTED 
STANDARD,'' delete the ninth example.]
[Under the heading ``Standard Mail (B),'' in the second example delete 
the word ``BLK RT,'' in the third example change ``BULK PARCEL POST'' 
to ``PARCEL POST,'' add a fifth example that reads ``PP D/S, U.S. 
POSTAGE PAID, NEW YORK, NY, PERMIT NO. 1,'' add a sixth example that 
reads ``PRESORTED BOUND PRINTED MATTER, U.S. POSTAGE PAID, NEW YORK, 
NY, PERMIT NO. 1.'']
* * * * *

P100  First-Class Mail

* * * * *
2.0  SINGLE-PIECE RATE
* * * * *
[Insert new 2.6 to read as follows:]

2.6  Residual Standard Mail (A) Subject to First-Class Rates

    Mailers who have pieces weighing 13 ounces or less that do not 
qualify for Standard Mail (A) rates, but that are prepared as Standard 
Mail (A), must pay single-piece First-Class Mail postage for such 
pieces. If mailers do not desire to receive First-Class Mail service 
for such pieces they may enter the mailpieces ``as is'' (i.e., bearing 
the Standard Mail (A) markings and endorsements), under the following 
conditions:
    a. Additional markings and/or postage must not be added to these 
pieces.
    b. Mail bearing metered or precanceled stamp postage must pay the 
difference between the postage affixed at the Standard Mail (A) rates 
and the single-piece First-Class Mail rates by means of an advance 
deposit account or by affixing a meter strip for the appropriate amount 
to Form 3600-P, Postage Statement--(First-Class Mail Postage Affixed. 
The number of pieces, rate, and any surcharge information must be 
entered in Part C on the reverse side of Form 3600-P in the space 
provided under the special heading ``From Standard Mail (A)''.
    c. Mail bearing permit imprints must pay the appropriate single-
piece First-Class rates by completing Form 3600-R, Postage Statement--
(First-Class Mail Permit Imprint. The number of pieces, rate, and any 
surcharge information must be entered in Part C on the reverse side of 
Form 3600-R in the space provided under the special heading ``From 
Standard Mail (A).'' For permit imprint mail there must be at least 200 
pieces, except when the pieces are part of a larger mailing job and are 
submitted for acceptance along with the mail and a Standard Mail (A) 
postage statement for the other pieces in the same mailing job.
3.0  PRIORITY MAIL RATES
* * * * *
[Insert new 3.4 to read as follows:]

3.4  Residual Standard Mail (A) Subject to Priority Mail Rates

    Mailers who have permit imprint pieces weighing over 13 ounces, but 
less than 16 ounces, that do not qualify for Standard Mail (A) rates, 
but that are prepared as Standard Mail (A), must pay Priority Mail 
postage for such pieces. Mailpieces paid with meters or permit imprints 
must re-envelope or otherwise prepare the pieces so that when mailed 
they bear only the appropriate Priority Mail markings, ancillary 
service endorsements, and ACS codes, and do not bear Standard Mail (A) 
markings, endorsements, or ACS codes. Mailpieces paid with permit 
imprints for which mailers do not desire to receive Priority Mail 
service may enter the mailpieces ``as is'' (i.e., bearing the Standard 
Mail (A) markings and endorsements), under the following conditions:
    a. Additional markings and/or postage must not be added to these 
pieces.
    b. The appropriate Priority Mail rates must be paid by completing 
Form 3600-PM, Postage Statement--Priority Mail Permit Imprint. The 
pieces must be recorded on this postage statement on the line titled 
``Pieces From Standard Mail (A)'' in the postage calculation section. 
For permit imprint mail there must be at least 200 pieces, except when 
the pieces are part of a larger mailing job and are submitted for 
acceptance along with the mail and a Standard Mail (A) postage 
statement for the other pieces in the same mailing job.
* * * * *

P600  Standard Mail

1.0  BASIC INFORMATION

1.1  Payment Method

[Amend 1.1 to read as follows:]
    Standard Mail postage must be paid using one of the following 
methods:
    a. Standard Mail (A). The mailer is responsible for proper postage 
payment. Postage for Standard Mail (A) must be paid with meters, permit 
imprints, or precanceled stamps. Postage-affixed pieces must bear the 
correct postage unless excepted by standard. A permit imprint may be 
used for mailings that contain nonidentical-weight pieces only if 
authorized by the RCSC serving the mailing office.
    b. Standard Mail (B). The mailer is responsible for proper postage 
payment. Subject to the corresponding standards, postage for single-
piece rate Standard Mail (B) may be paid by any method. Postage for 
bulk rate (rate has minimum mailing volume requirement) or presort rate 
Standard Mail (B) must be paid with meters or permit imprints. Postage-
affixed pieces must bear the correct postage unless excepted by 
standard. A permit imprint may be used for mailings that contain 
nonidentical-weight pieces only under P710, P720, or P730. Permit 
imprints may be used for identical weight pieces provided that the mail 
can be separated into groups that each contain pieces subject to the 
same zone and same combination of rates (e.g., all are zone 4, Inter-
BMC, with a BMC Presort discount and a barcode discount). Identical 
weight permit imprint mail also may be mailed under P710, P720, or 
P730.
* * * * *
[Delete 1.3.]
[Revise title of 2.0 and clarify the language in 2.1 to read as 
follows:]
2.0  Standard Mail (A)--Presorted and Enhanced Carrier Route

 2.1  Identical-Weight Pieces

    Mailings of identical-weight pieces in a Presorted or Enhanced 
Carrier Route mailing may have postage affixed to each piece at the 
exact rate for which the piece qualifies, or each piece in the mailing 
may have postage affixed at the lowest rate applicable to pieces in the 
mailing or in the mailing job. Alternatively, a nondenominated 
precanceled stamp may be affixed to every piece in the mailing or 
mailing job, or each piece may bear a permit imprint. If exact postage 
is not affixed, all additional postage must be paid at the time of 
mailing with an advance deposit account or with a meter strip affixed 
to the required postage statement. If exact postage is not affixed, 
documentation meeting the standards in P012 must be submitted to 
substantiate the additional postage unless the pieces are identical 
weight and separated by rate when presented for acceptance.
* * * * *
[Revise the heading of 3.0 to read as follows:]
3.0  STANDARD MAIL (A)--AUTOMATION RATES
* * * * *

P710  Manifest Mailing System (MMS)

* * * * *

[[Page 37997]]

3.0  Keyline

3.1  Letter-Size Mail

* * * * *

Exhibit P710.3.1  Letter-Size Keyline Information

[Amend the postage indicia in the upper right corner of the second 
(Standard Mail (A))sample mailpiece by replacing ``BULK RATE'' with 
``PRSRT STD'' to read as follows:]

PRSRT STD
U.S. POSTAGE PAID
NEW YORK, NY
PERMIT NO. 1
* * * * *

P750  Plant-Verified Drop Shipment (PVDS)

* * * * *
2.0  PROGRAM PARTICIPATION
* * * * *

2.11  Mailer Transport of PVDS

[Revise 2.11 to provide for additional DSCF and DDU rate Parcel Post 
mailings as follows:]
    Using any means of transportation, including Express Mail or 
Priority Mail drop shipment, the mailer must transport PVDS mailings 
from the origin plant to the destination postal facility or facilities. 
The mailer must not transport PVDS mailings on the same vehicle with 
shipments not entered as PVDS. For Standard Mail PVDS, the mailer must 
meet the scheduling standards for mail deposit at destination entry 
postal facilities. If a vehicle contains mail paid at the Parcel Post 
destination entry rates, the applicable standards for scheduling of 
deposits and unloading of vehicles apply to any other mail on the same 
vehicle for the same destination facility. Any material classified as 
hazardous under C023 may not be carried in the same vehicle as PVDS 
mailings.

2.12  Separation of PVDS Mailings

[Renumber 2.12d and 2.12e as 2.12e and 2.12f, respectively. Add new 
2.12d to provide for separation of Parcel Post at different destination 
entry rates in the same shipment as follows:]
    PVDS mailings must be kept separate:
* * * * *
    d. When a vehicle contains a shipment of Standard Mail (B) claiming 
more than one destination entry discount for deposit at the same postal 
facility, the mail eligible for each destination entry discount must be 
physically separated.
* * * * *
5.0  POSTAGE
* * * * *

5.3  Standard Mail (B)

[Revise 5.3 to explain zone-based postage computation as follows:]
    Postage for Standard Mail (B) PVDS must be paid with meter stamps 
or with a permit imprint under the applicable authorization at the post 
office serving the mailer's location. Postage for DBMC mailings is 
computed from the BMC parent post office.
* * * * *

P760  First-Class or Standard Mail Mailings with Different Payment 
Methods

* * * * *
2.0  POSTAGE
* * * * *

2.2  Metered Pieces Standard Mail (A)

[Revise the first sentence of 2.2 to change the term ``nonautomation'' 
to ``Presorted.'' Delete the last sentence.]
    Metered pieces in a combined mailing must bear postage at a 
Presorted or automation rate for which the pieces are eligible. 
Additional postage due for metered pieces in a combined mailing is 
deducted from the mailer's postage due advance deposit account.
* * * * *

2.4  Precanceled Pieces Standard Mail (A)

[Amend 2.4 by deleting the last sentence.]
* * * * *
3.0  PRODUCING THE COMBINED MAILING
* * * * *

3.3  Rejected Pieces

[In 3.3a, change the phrase ``Standard Mail (A) 3/5 presort rate'' to 
``3/5 Presorted Standard Mail (A) rate as follows:'']
    Pieces rejected for any reason by the mailer's automated sorting 
system and pulled out of the combined mailing stream must be identified 
by the mailer, specifically accounted for in documentation, and:
    a. If postage-affixed, bear postage or have additional postage 
affixed to equal a rate no lower than the correct Presorted First-Class 
rate or 3/5 Presorted Standard Mail (A) rate for letters, as 
applicable.
* * * * *
[Revise entire R module to read as follows:]

BILLING CODE 7710-12-P

[[Page 37998]]

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[[Page 38029]]

[GRAPHIC] [TIFF OMITTED] TR14JY98.031



BILLING CODE 7710-12-C

S  Special Services

S000  Miscellaneous Services

S010  Indemnity Claims

* * * * *
2.0  GENERAL FILING INSTRUCTIONS

2.1  Who May File

[Insert new 2.1d to read as follows:]
    A claim may be filed by:
* * * * *
    d. Only the sender, for bulk Insured service mail.

2.2  When to File

[Amend the chart to add the following:]

------------------------------------------------------------------------
                                      When to file (from mailing date)  
       Mail type or service       --------------------------------------
                                     No sooner than      No later than  
------------------------------------------------------------------------
Bulk Insured.....................  30 days...........  6 months         
                                                                        
                *         *         *         *         *               
------------------------------------------------------------------------

* * * * *

2.11  Payable Claim

[Amend 2.11a and add new 2.11n to read as follows:]
    Insurance for loss or damage to insured, registered, or COD mail 
within the amount covered by the fee paid or within the indemnity 
limits for Express Mail as explained in 2.12 is payable for the 
following:
    a. Actual value of lost articles at the time and place of mailing 
(see 2.11n for bulk insured articles).
* * * * *
    n. For bulk insured articles, indemnity is provided for the lesser 
of (1) the actual value of the article at the time of mailing, or (2) 
the wholesale cost of the contents to the sender.
* * * * *

2.13  Payment

[Amend 2.13 to read as follows:]
    The USPS does not make payment for more than the actual value of 
the article (or, for bulk insurance, the wholesale cost of the contents 
to the sender if a lesser amount) nor make payment for more than the 
maximum amount covered by the fee paid.
* * * * *
4.0  ADJUDICATION

4.1  Initial

[Amend 4.1 to read as follows:]
    The St. Louis Accounting Service Center (ASC) adjudicates and pays 
or disallows all domestic claims except the initial adjudication of 
domestic unnumbered insured claims that are not bulk insured service 
and those appealed under 4.3. Domestic unnumbered insured claims, 
except for bulk insured service, are adjudicated and paid locally at 
the post office accepting the claims.
* * * * *
[Insert new 6.0 to read as follows:]
6.0  BULK INSURED CLAIMS
    Mailers authorized to mail at bulk insured rates under S913 will 
receive instructions for filing claims from their postmaster or 
designee, including specific claim numbers to be used when filing 
claims. At some time in the future, electronic filing of indemnity 
claims will become mandatory. Prior to mandatory electronic claims 
filing, customers will be provided with the format instructions for the 
new electronic (soft copy) of Form 3877, Firm Mailing Book for 
Accountable Mail, and instructions for electronic filing of indemnity 
claims.
* * * * *

S070  Mixed Classes

1.0  BASIC INFORMATION
[Amend 1.1 and 1.2 to read as follows:]
1.1  Priority Mail Drop Shipment
    For a Priority Mail drop shipment, enclosed First-Class Mail may be 
sent certified or special handling; enclosed Standard Mail (B) may be 
sent special handling. Enclosed mail, regardless of class, may not be 
sent registered, insured, or collect on delivery (COD). No special 
services may be given to the Priority Mail segment of the drop 
shipment.

1.2  Special Handling

    A combination mailpiece sent as a Standard Mail (B) parcel may be 
sent using special handling; only one special handling fee is charged 
for the parcel.
* * * * *

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

* * * * *
2.0  FEES AND LIABILITY
* * * * *

2.3  Postal Insurance

[Amend 2.3 to read as follows:]
    Postal insurance is provided for articles with a value of at least 
$0.01 up to a maximum insured value of $25,000. Insurance is included 
in the fee. Postal insurance is not available for articles with no 
value ($0.00).
* * * * *

S913  Insured Mail

1.0  BASIC INFORMATION

1.1  Description

[Amend 1.1 to add a reference to the bulk insurance discount read as 
follows:]
    Retail insured mail provides up to $5,000 indemnity coverage for a 
lost, rifled, or damaged article, subject to the standards for the 
service and payment of the applicable fee. A bulk insurance discount is 
available for insured articles entered by authorized mailers who meet 
the criteria in 3.0. No record of insured mail is kept at the office of 
mailing. Insured mail service provides the sender with a mailing 
receipt. For mail insured for more than $50, a delivery record is kept 
at the post office of address. Insured mail is dispatched and handled 
in transit as ordinary mail.

1.2  Eligible Matter

[Amend 1.2 to read as follows:]
    The following types of mail matter may be insured:
    a. Standard Mail (B).
    b. Standard Mail matter mailed at the First-Class Mail or Priority 
Mail rates (i.e., is not matter described in E110 as required to be 
mailed as First-Class Mail). Sealed matter must be endorsed ``Standard 
Mail Enclosed'' in addition to the First-Class Mail or Priority Mail 
endorsement.

[[Page 38030]]

    c. Official government mail endorsed ``Postage and Fees Paid.''

1.3  Ineligible Matter

[Insert new 1.3f and 1.3g to read as follows:]
    The following items may not be insured:
* * * * *
    f. Matter mailed at Standard Mail (A) rates.
    g. Matter mailed at First-Class Mail rates (including Priority 
Mail) that consists of items described in E110 as required to be mailed 
at the First-Class rates.
* * * * *
[Renumber current 3.0 as 4.0 and insert new 3.0 to read as follows:]
3.0  ADDITIONAL REQUIREMENTS--BULK INSURANCE

3.1  Eligibility

    To mail at the bulk insured service rates, mailers must obtain an 
authorization under 3.2 and must meet the following criteria:
    a. Enter mailings of insured articles under an approved manifest 
mailing system agreement.
    b. Mail a minimum of 10,000 insured articles annually. To meet the 
minimum volume requirement, mailers may total all insured articles 
mailed at multiple locations.
    c. Provide a hard copy of Form 3877, Firm Mailing Book for 
Accountable Mail, or facsimile and a copy of Form 3877 on a disk or 
other electronic medium.
    d. Effective at a future date, provide a soft (electronic) copy of 
Form 3877, Firm Mailing Book for Accountable Mail, in a new, approved 
format.

3.2  Authorization

    Mailers must apply for authorization to mail at the bulk insured 
service rates through their local postmaster or designee by completing 
the customer portion of the Bulk Insured Service (BIS) verification 
form. The postmaster or designee will verify on this form that the 
mailer meets the requirements in 3.1. If the mailer does not meet the 
requirements, the application will be denied. If the mailer meets the 
requirements in 3.1, the postmaster or designee will certify on the 
Bulk Insured Service (BIS) verification form that the mailer qualifies 
and forward the form to the manager of Claims Processing at the St. 
Louis Accounting Service Center (ASC). After reviewing the information, 
St. Louis will notify the postmaster of their concurrence of the 
application and provide a range of claim numbers to be used by the 
mailer for filing claims. The postmaster or designee will then provide 
the customer with the approval of the application and with information 
needed to file claims, including the assigned claim numbers. At a 
future date, electronic filing of indemnity claims will become 
mandatory. Prior to mandatory electronic claims filing, customers will 
be provided with the format instructions for the new electronic (soft 
copy) of Form 3877, Firm Mailing Book for Accountable Mail, and 
instructions for electronic filing of indemnity claims.
* * * * *

S915  Return Receipt

1.0  BASIC INFORMATION

1.1  Description

[Clarify 1.1 to read as follows:]
    Return receipt service provides a mailer with evidence of delivery 
(to whom the mail was delivered and date of delivery). A return receipt 
also supplies the recipient's actual delivery address if it is 
different from the address used by the sender. A return receipt may be 
requested before or after mailing.
* * * * *
2.0  OBTAINING SERVICE

2.1  At Time of Mailing

[Correct the first sentence by changing ``Form 3811 or marking the 
mail'' to ``Form 3811 and marking the mail'' as follows:]
    The mailer may request the service at the time of mailing by using 
Form 3811 and marking the mail with the appropriate endorsement in 1.3. 
* * *
* * * * *

S917  Return Receipt for Merchandise

1.0  BASIC INFORMATION
* * * * *

1.2  Availability

[Amend 1.2 to delete ``Single-Piece Standard Mail'' as follows:]
    The service is available only for merchandise sent at the Priority 
Mail or Standard Mail (B) (Parcel Post, Bound Printed Matter, Special 
Standard Mail, or Library Mail) rates. This service may not be used on 
international mail.

1.3  Additional Services

[Amend 1.3 to delete ``Single-Piece Standard Mail'' and add ``Priority 
Mail'' as follows:]
    Special handling is available for Priority Mail, Parcel Post, Bound 
Printed Matter, Special Standard Mail, or Library Mail, subject to 
payment of the applicable fee.
* * * * *
[Add new S918 as follows:]

S918  [Reserved]

S920  Convenience

S921  Collect on Delivery (COD) Mail

1.0  BASIC INFORMATION
* * * * *

1.2  Eligible Matter

[Amend 1.2 by removing ``Single-Piece Standard Mail'' to read as 
follows:]
    COD service may be used for Express Mail, First-Class Mail, 
Priority Mail, and Standard Mail (B) (Parcel Post, Bound Printed 
Matter, Special Standard Mail, and Library Mail) if:
* * * * *

S922  Business Reply Mail (BRM)

1.0  BASIC INFORMATION
* * * * *
[Delete 1.5 and renumber current 1.6 as 1.5]
2.0  PERMITS
* * * * *
[Delete 2.2. Renumber current 2.3 through 2.8 as 2.2 through 2.7.]
3.0  POSTAGE AND FEES

3.1  Permit Fee

[Amend 3.1 to read as follows:]
    An annual BRM permit fee is charged each 12-month period.
* * * * *
[Replace current 3.4 with new 3.4 to read as follows:]

3.4  Charges

    a. Postage. The applicable First-Class Mail or Priority Mail 
postage on each returned piece is collected from the addressee on 
delivery. A lower rate of First-Class Mail postage applies to QBRM 
(R100).
    b. Fee Per Piece. The applicable BRM fee must be collected for each 
returned piece of BRM in addition to the applicable single-piece First-
Class Mail or Priority Mail postage. Lower piece fees apply to mail 
paid through a BRM advance deposit account and to QBRM pieces (R900).
    c. Improperly Prepared QBRM. The appropriate non-QBRM First-Class 
Mail postage plus the non-QBRM per piece fee is charged for:
    (1) Business reply cards and letters returned under QBRM that were 
rejected by USPS barcode sorters and found not to meet the standards 
for QBRM.
    (2) QBRM pieces with an incorrect barcode (e.g., a barcode 
representing the card rate on a letter-size piece).
[Delete current 3.5 and renumber current 3.6 through 3.11 as 3.5 
through

[[Page 38031]]

3.10, respectively. Amend renumbered 3.6 to read as follows:]

3.6  Cash or Postage Due

    Payment may be paid in cash or by a regular postage-due account. 
The applicable BRM fee is collected, but no business reply accounting 
fee is charged when a regular postage-due account is used (P011). A 
postage-due account does not qualify the BRM for the lower per-piece 
charge given to permit holders with a business reply account.

3.7  Account Use

[Amend renumbered 3.7c and 3.7d to read as follows:]
    A BRM advance deposit account must be used only for payment of 
postage and fees on BRM, subject to these conditions:
* * * * *
    c. When a permit holder with a business reply account desires a 
separation of charges, payment of a business reply accounting fee is 
required for each separate billing prepared. If a business reply 
accounting fee is not paid for each separation, the permit holder pays 
the appropriate non-QBRM First-Class Mail postage, plus for each 
separation the per-piece charge applicable to any mailer without a 
business reply account.
    d. A sufficient balance must be maintained in the permit holder's 
advance deposit account for BRM. The permit holder is notified if funds 
are insufficient. After 3 days, if no funds are deposited, BRM on hand 
is charged at the fee for postage due or cash transactions.
* * * * *

3.8  Single Item

[Amend renumbered 3.8 to read as follows:]
    Except for QBRM, two or more BRM pieces may be mailed as a single 
piece if the BRM pieces are identically addressed and prepared in 
accordance with C100. BRM postage-due calculations are based on the 
total weight of the piece and the appropriate First-Class Mail or 
Priority Mail postage plus the BRM per-piece charge for one piece. If 
the combined pieces become separated, BRM postage and fee charges are 
calculated for each piece.
* * * * *
4.0  FORMAT
* * * * *

4.3  Print Reflectance

[Amend 4.3 to read as follows:]
    All ink colors are acceptable if the piece meets the appropriate 
reflectance standards in C830 and C840.
* * * * *

4.8  Delivery Address

[Amend 4.8 to read as follows:]
    Unless printed on an address label or on an insert for a window 
envelope under 6.0, the complete address (including the permit holder's 
name, street address and/or post office box number, city, state, and 
ZIP Code) must be printed directly on the piece, subject to these 
conditions:
    a. For pieces distributed under QBRM, the address must include a 
unique ZIP+4 code that is preassigned for the BRM piece and that 
identifies the type of BRM, the applicable rate, and the individual 
permit holder (see E150).
    b. Preprinted labels with only delivery address information 
(including a ZIP+4 barcode under 5.0) are permitted for addressing BRM, 
but the permit holder's name must still be printed directly on the BRM. 
Permit holders are liable for the postage and fees on BRM returned with 
improper addressing.
    c. The bottom line of the address must not be lower than 5/8 inch 
or higher than 2-1/4 inches from the bottom edge of the piece. A clear 
margin void of any extraneous matter (except for the horizontal bars 
specified in 4.9) of at least 1 inch is required between the left and 
right edges of the piece and the address.
* * * * *
    f. A company logo is permitted on prebarcoded BRM if placed no 
lower than 5/8 inch from the bottom edge of the piece and is permitted 
on nonbarcoded BRM if placed no lower than the top of the street 
address or the post office box line of the address. The logo must not 
interfere with any required business reply endorsements.
* * * * *
5.0  PREBARCODED BRM
[Delete current 5.1 through 5.7, and insert new 5.1 through 5.3 to read 
as follows:]

5.1  General Format Standards

    Prebarcoding of BRM is optional except for letter-size BRM enclosed 
in automation rate mailings and for QBRM. Prebarcoded BRM must meet all 
general format standards in 4.0, the applicable barcoding standards in 
C840, the mailpiece design requirements in C810 (except the envelope 
basis weight requirements in 7.1), and these standards:
    a. An envelope or any mailpiece formed by an outer sheet or sheets 
sealed on all four edges must be prepared from paper with a minimum 
basis weight of 20 pounds (measured weight for 500 17 by 22-inch 
sheets).
    b. FIM C must be used (see C100).
    c. The ZIP+4 codes and barcodes assigned to the BRM permit holder 
by the USPS must be used. Delivery point barcodes are not permitted on 
BRM.
    d. Except as provided in e, the ZIP+4 barcode must be placed on the 
address side of the piece and positioned in either of these two 
locations:
    (1) As part of the delivery address block under C840 if printed on 
an insert placed in a window envelope or on an address label affixed 
directly to the piece.
    (2) Within the barcode clear zone in the lower right corner of the 
piece if printed directly on the piece or if printed on an insert or a 
label affixed to an insert and placed in an envelope with a lower right 
barcode window under C840.
    e. Until January 10, 2001, mailers may continue to use existing 
stocks of prebarcoded BRM envelopes and cards with barcodes in the 
lower right corner that:
    (1) Have a barcode clear zone with a left boundary that is 4\1/2\ 
inches from the right edge of the piece (not 4\3/4\ inches as required 
in C840).
    (2) Have a lower right barcode for which the leftmost bar is 
located between 3\1/4\ and 4 inches from the right edge of the piece 
(not between 3\1/2\ and 4\1/4\ inches as required under C840).
    (3) Have a lower right barcode window, that has a left boundary 
measuring 4\1/2\ inches from the right edge of the piece (not 4\3/4\ 
inches as required under C840).
    f. Mailers have until January 10, 2001, to comply with C810.2.1c(2) 
that requires pieces measuring more than 4\1/4\ inches high or 6 inches 
long, or both to measure at least 0.009 inch thick. Until January 10, 
2001, such pieces need only meet the minimum thickness of 0.007 inch.

5.2  Samples

    Mailers are encouraged to submit preproduction samples of BRM to 
the USPS for approval.

5.3  Error Notification

    If the USPS discovers a BRM format error, the responsible permit 
holder or authorized permit user receives written notification of the 
error and applicable specification. The permit holder must correct the 
error and make sure that all future BRM pieces distributed by any means 
meet appropriate specifications. The repeated distribution of BRM with 
a format error, as determined by the

[[Page 38032]]

USPS, is grounds for revoking a business reply permit. To obtain a new 
permit after a BRM permit is revoked for not following BRM format 
specifications, a former permit holder must complete a new application 
on Form 3615, pay the required BRM permit fee, pay a new business reply 
accounting fee if applicable, and submit two samples of each BRM format 
to the appropriate post office for approval for the next 2-year period.
[Replace 6.0 with the following:]
6.0  MAILPIECE CHARACTERISTICS

6.1  Paper Weight

    Paper envelopes used for BRM must have a minimum basis weight of 20 
pounds (500 17- by 22-inch sheets). Other pieces must meet the basis 
weight requirements in C810.

6.2  Nonpaper Envelopes

    USPS Engineering must approve nonpaper envelopes for mailability.

6.3  Reflectance

    BRM pieces must meet the reflectance requirements in C830. In 
addition, envelope material must not have a red fluorescence exceeding 
4.0 phosphor meter units.

6.4  Sealing and Edges

    Any BRM piece is nonmailable if sealed with wax, clasps, string, 
staples, or buttons; if all edges are not straight; or if the piece is 
not rectangular.

6.5   Window Envelope

    The following standards apply to BRM prepared in a window or open-
panel envelope:
    a. The pieces must meet the standards in C830 for envelopes with an 
address windows and inserts.
    b. The endorsement ``NO POSTAGE NECESSARY IF MAILED IN THE UNITED 
STATES,'' horizontal bars, FIM, and the legend ``BUSINESS REPLY MAIL'' 
must be printed directly on the address side of the envelope. Other 
required elements, including ``FIRST-CLASS MAIL PERMIT NO.,'' city, 
state, ``POSTAGE WILL BE PAID BY ADDRESSEE,'' and the permit holder's 
name and complete delivery address, may appear either on the enclosure 
in the window or be printed directly on the envelope.
    c. The address showing through the window must be that of the 
permit holder or an authorized agent/dealer.

6.6  BRM Self-Mailer

    Self-mailers must be at least 0.007 inch thick, not more than 0.25 
inch thick, and meet the requirements for sealing and folding self-
mailers in C810.4.0 and C810.7.2. Self-mailers must contain 
instructions to the user for sealing and folding, so that on return the 
self-mailer will meet the applicable sealing and folding requirements 
in C810. Barcoded self-mailers, including QBRM pieces also must meet 
the requirements in 5.0.

6.7  BRM Card

    A BRM card must be rectangular, not less than 3\1/2\ by 5 inches or 
more than 4\1/4\ by 6 inches, and of uniform thickness not less than 
0.007 inch or more than 0.016 inch to qualify for the card postage 
rate. Any card larger than those dimensions is mailable but is charged 
at the First-Class Mail rate for matter other than cards. Additional 
standards in 5.0 and C810 apply to prebarcoded BRM, including QBRM.

6.8  BRM Label

    The following standards apply to BRM labels:
    a. For other than letter-size pieces, the minimum size of a label 
with the legend ``Business Reply Label'' is 2 inches high and 3 inches 
long. It is not necessary to print FIMs or barcodes on these labels, 
but all other BRM format standards must be met.
    b. For letter-size envelopes, the minimum size of a label with the 
legend ``Business Reply Label'' is 2\5/8\ inches high and 4\1/4\ inches 
long. A FIM must be printed on the label. The label must be coated with 
a permanent adhesive strong enough to firmly attach the label to an 
envelope. The labels must meet the standards in 4.8 and 4.9 except that 
the series of horizontal bars on labels must be at least \3/4\-inch 
high.
    c. For letter-size envelopes, the permit holder must supply the 
user with instructions describing how the label should be applied to an 
envelope and what precautions must be observed when applying the label 
(see Exhibit 6.8). A pictorial diagram showing proper placement of the 
label must be included with the instructions. At a minimum, the 
instructions must include the following directions:
    (1) Place the label squarely on the upper right corner of the 
envelope.
    (2) Do not write on the envelope.
    (3) Do not use a window envelope, an envelope that is less than 1 
inch taller than the label, or an envelope with any printing other than 
the return address.
    (4) Do not use the label on an envelope more than 4\1/2\ inches 
high.
    (5) Do not use tape to affix the label. d. The address must be 
printed in the address block, and the envelope with label affixed must 
meet applicable OCR readability standards in C830.
    e. Business reply labels may not be distributed under QBRM.
[Renumber former Exhibit 6.10 as Exhibit 6.8.]
[Delete the entire contents of 7.0.]

S923  Merchandise Return Service

1.0  BASIC INFORMATION:

1.1  Description

[Delete the words ``Single-Piece Standard Mail'' in 1.1.]
* * * * *

1.3  Payment Guarantee

[Amend 1.3 for clarification and to eliminate return of articles at the 
single-piece Standard Mail (A) rate to read as follows:]
    a. The permit holder guarantees payment of the proper postage and 
fees on all returned merchandise return service articles distributed 
under the permit holder's permit number. Charges are collected for each 
article as postage due at the time of delivery or from a centralized 
advance deposit account using Form 3582-C, Postage Due Invoice.
    b. Articles are charged the required fees and the proper single-
piece rate as follows:
    (1) The Priority Mail, First-Class Mail, Bound Printed Matter, 
Special Standard, or Library Mail rate as marked on the label.
    (2) If no rate marking appears on the label, pieces weighing less 
than 16 ounces are charged the applicable First-Class Mail or Priority 
Mail rates based on weight, and pieces weighing 16 ounces or more are 
charged the Parcel Post rate.
    (3) See 1.12 for postage on articles received without a return 
address or a postmark.
* * * * *

1.11  Mailer Markings and Endorsements

[Revise 1.11 to read as follows:]
    If the permit holder desires matter weighing 16 ounces or more to 
be returned at a rate other than Parcel Post, the permit holder must 
preprint the appropriate rate marking on the label. If the permit hold 
desires matter weighing 16 ounces or less to be returned at the Special 
Standard or Library Mail rates, or matter weighing 13 ounces or less to 
be mailed at the Priority Mail rates, the mailer must preprint the 
appropriate rate marking on the label. Otherwise, matter weighing 13 
ounces or less will be returned at the First-Class Mail rates and 
matter weighing over 13 ounces and less than 16 ounces will be returned 
at the Priority Mail rates. It is recommended but not required that

[[Page 38033]]

matter to be returned at the First-Class Mail, Priority Mail, or Parcel 
Post rates bear the applicable preprinted marking ``First-Class'' or 
``First-Class Mail,'' ``Priority Mail,'' or ``Parcel Post'' (or 
``PP'').

1.12  No Return Address or Postmark

    Articles received without a return address or postmark are charged 
the required fees and the proper single-piece rate as follows:
    a. The Priority Mail, First-Class Mail, Bound Printed Matter, 
Special Standard, or Library Mail rate as marked on the label.
    b. If no rate marking appears on the label, pieces weighing 13 
ounces or less are charged the First-Class Mail rates, pieces weighing 
over 13 ounces and less than 16 ounces are charged the Priority Mail 
rates, and pieces weighing 16 ounces or more are charged the Parcel 
Post rates.
    c. Zoned rates are calculated at zone 4.
* * * * *
3.0  POSTAGE AND FEES
* * * * *

3.2  Transaction Fee

    [Change ``Standard Mail'' to ``Standard Mail (B)'' as follows:]
    The applicable transaction fee is assessed for each item returned, 
in addition to single-piece Priority Mail, First-Class Mail, or 
Standard Mail (B) rate postage and as applicable, the fees for pickup 
or special services.
* * * * *
4.0  ADDITIONAL FEATURES

4.1  Insured Mail

[Amend 4.1 to read as follows:]
    The permit holder may obtain insured mail service with direct 
merchandise return service but not with Priority Mail reshipment. The 
customer using a merchandise return label to return an article that 
does not have the appropriate postage due computation markings in 5.0 
or the endorsement specified in 4.2 may not obtain insured mail 
service. Only Standard Mail matter (i.e., matter not required to be 
mailed at First-Class Mail rates under E110) returned at the Standard 
Mail (B) rates or First-Class Mail or Priority Mail rates may be 
insured. If the matter is to be returned as First-Class Mail or 
Priority Mail, the endorsement ``Standard Mail Enclosed'' must appear 
below the class of mail endorsement on the merchandise return label.
* * * * *

4.7  Special Handling

[Revise the last sentence to read as follows:]
    * * * Special handling service is available only for articles 
returned at First-Class Mail, Priority Mail, or Standard Mail (B) 
rates.
* * * * *

4.10  Combining Special Services

[Amend 4.10 to read as follows:]
    Standard Mail articles (i.e., matter not required to be mailed at 
First-Class Mail rates under E110) may be both insured and receive 
special handing if the permit holder meets the applicable standards.
    Registered merchandise return pieces cannot receive any other 
special service.
* * * * *
5.0  FORMAT
* * * * *

5.6  Format Elements

* * * * *
[Revise 5.6c to read as follows:]
    Format standards required for the merchandise return label are 
shown in Exhibit 5.6a, Exhibit 5.6b, and Exhibit 5.6c and described as 
follows:
* * * * *
    c. Rate Marking. If the matter to be returned bears a rate marking 
as required or recommended under 1.11, the rate marking must be placed 
in the space to the right and above the ``Merchandise Return Label'' 
rectangle. The marking must be at least \1/4\-inch high and printed or 
rubber-stamped. Only the permit holder may apply this marking.
* * * * *
[Revise 5.6e(3) to read as follows:]
    e. Registry Service. * * *
* * * * *
    (3) The appropriate insurance endorsement, below the ``TOTAL 
POSTAGE AND FEES DUE'' entry: if matter returned has value ($0.01 or 
greater), ``REGISTERED MAIL SERVICE WITH POSTAL INSURANCE DESIRED BY 
PERMIT HOLDER''; if matter returned has no value ($0.00), ``REGISTERED 
MAIL SERVICE WITHOUT POSTAL INSURANCE DESIRED BY PERMIT HOLDER.''
* * * * *

S924  Bulk Parcel Return Service

* * * * *
2.0  PERMITS

2.1  Application Process and Participation

[Revise 2.1a and 2.1b to read as follows:]
    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. At a given delivery point, demonstrate receipt of 10,000 
returned machinable parcels (originally mailed at Standard Mail (A) 
rates) during the previous 12 months, or
    b. At a given delivery point, demonstrate a high likelihood of 
receiving a minimum of 10,000 returned machinable parcels (originally 
mailed at Standard Mail (A) rates) in the coming 12 months. * * *
* * * * *

2.2  Permit Renewal

[In the last two sentences change ``single-piece Standard Mail (A) 
rate'' to ``single-piece First-Class Mail or Priority Mail rate as 
appropriate for the weight of the piece.'']
* * * * *

S930  Handling

1.0  SPECIAL HANDLING

1.1  Description

[In 1.1 change ``E620'' to ``E630.'']
[Amend 1.2 through 1.4 to read as follows:]

1.2  Availability

    Special handling service is available only for First-Class Mail, 
Priority Mail, and Standard Mail (B) (Parcel Post, Bound Printed 
Matter, Special Standard Mail, and Library Mail).
* * * * *

1.4  Bees and Poultry

    Unless sent at the First-Class Mail or Priority Mail rates, special 
handling is required for parcels containing honeybees or baby poultry. 
Under C022.37, only queen honeybees may be shipped by aircraft. Check 
with your local post office for mailability prior to mailing honeybees 
other than queen honeybees at First-Class Mail or Priority Mail rates.
* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-18271 Filed 7-13-98; 8:45 am]
BILLING CODE 7710-12-P