[Federal Register Volume 63, Number 199 (Thursday, October 15, 1998)]
[Rules and Regulations]
[Pages 55472-55478]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27674]



[[Page 55471]]

_______________________________________________________________________

Part III





Postal Service





_______________________________________________________________________



39 CFR Part 111



New Specifications for Automated Flats; Rule

  Federal Register / Vol. 63, No. 199 / Thursday, October 15, 1998 / 
Rules and Regulations  

[[Page 55472]]



POSTAL SERVICE

39 CFR Part 111


New Specifications for Automated Flats

AGENCY: Postal Service.

ACTION: Final rule.

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

SUMMARY: This final rule sets forth the DMM standards adopted by the 
Postal Service to implement the discount rate for automation flat-size 
mailpieces processed on the Flat Sorting Machine (FSM) 1000. The FSM 
1000 is capable of processing mailpieces that cannot be processed on 
the FSM 881. FSM 1000 machines are being retrofitted with barcode 
readers. Mailpieces that currently do not qualify for automation flat 
rates will be eligible if pieces meet the size and other criteria for 
processing on the FSM 1000, are prepared with correct ZIP+4 or delivery 
point barcodes, and meet other preparation requirements.

EFFECTIVE DATE: This final rule became effective at 12:01 a.m. on 
October 4, 1998.

FOR FURTHER INFORMATION CONTACT: Karen A. Magazino, (202) 268-3854.

SUPPLEMENTARY INFORMATION: On August 26, 1998, the Postal Service 
published for public comment in the Federal Register a proposed rule 
(63 FR 45440) that provided information on the implementation of 
automation flat rates for pieces prepared as automated flats that meet 
the physical mailpiece requirements for the FSM 1000. The revised DMM 
standards became effective October 4, 1998.
    Deployment of 340 FSM 1000s has been completed in major processing 
and distribution centers nationwide. Barcode reader deployment for the 
FSM 1000s will be completed by February 1999. Newspapers, tabloids, 
catalogs, and many kinds of polywrap that cannot be processed on 
existing FSM 881 equipment can be processed on FSM 1000 equipment and 
will now be able to qualify for automation discounts.
    Flat mailpieces must meet the uniformity requirements contained in 
C820.8.0.
    The FSM 1000 can efficiently process pieces that or bound or, if 
unbound are double folded. Since newspapers are double-folded, they 
pose little problem for processing on the FSM 1000. However, many flat-
sized mail pieces are not bound or double-folded; therefore, unbound 
flat-sized mailpieces will be required to be prepared with two folds. 
The second fold must be perpendicular to the original fold. In order to 
give publishers and printers the opportunity to make adjustments to 
their periodical design to comply with this requirement, the Postal 
Service has determined to suspend the effective date of this 
requirement until October 4, 2000.
    Testing has shown that larger pieces can be processed on FSM 1000 
than on the FSM 881. Separate size, weight, and thickness dimensions 
for mail that can be processed on the FSM 1000 will be added to the 
eligibility criteria for automation flat rates in DMM C820. The FSM 
1000 can process a piece up to 12 inches high by 15\3/4\ inches in 
length. For the FSM 1000, the length is the longest edge except that 
for pieces that are folded or have a bound edge, where the length is 
the dimension parallel to the folded or bound edge. This is different 
from the definitions of length and height for mailpieces processed on 
FSM 881. For FSM 881 pieces, the height is defined as the dimension 
parallel to the folded or bound edge. The length for folded pieces or 
pieces with a bound edge that are processed on the FSM 1000 increases 
3\3/4\ inches (for example, the bound edge) but the height decreases 3 
inches (for example, the edge perpendicular to the bound edge). The 
minimum height and length for all flats processed on the FSM 1000 is 4 
inches high by 4 inches long provided the mailpiece is greater than \1/
2\-inch. Mailpieces less than 5 inches in length must be greater than 
\1/4\-inch thick. The minimum thickness for pieces 5 inches or more in 
length is 0.009 inch.
    Testing of flat mailpieces demonstrated that as the length of the 
piece decreases, the thickness may increase. The maximum thickness 
requirement for the FSM 1000 mail are 1\1/4\ inches if the length of 
the mailpiece is 13 inches in length. For pieces over 13 inches, the 
thickness cannot exceed \7/8\ inch.
    The maximum weight for First-Class Mail mailpieces processed on the 
FSM 1000 is 11 ounces (13 ounces after rate case implementation, 
January 10, 1999), up to 16 ounces for Standard Mail (A), and 6 pounds 
for Periodicals.
    For pieces processed on the FSM 1000, the correct and properly 
prepared POSTNET barcode must be placed at least \1/8\ inch from any 
edge of the mailpiece. However, since there has been a demonstrated 
``slump'' on certain mailpieces, we strongly recommend barcodes be 
placed at least 2 inches from the dimension that is the length (the 
longest edge or, if bound or folded, the bound or folded edge).
    For pieces processed on the FSM 1000, barcode requirements found in 
C840.4.0, C840.5.0, and C840.6.0 still apply.
    Pieces that do not meet the FSM 881 dimensions, but do meet the FSM 
1000 dimensions may be prepared with polywrap under the guidelines 
specified in DMM C820.4.0 except that only physical property number 2 
(haze) will be required. Pieces prepared with FSM 1000 approved 
polywrap must bear a separate marking from pieces prepared with FSM 881 
approved polywrap to indicate the flat sorting machine for which the 
polywrap was approved. Mailers will be given a 1-year grace period to 
begin using the new polywrap markings that specify whether the polywrap 
is approved for FSM 881 or FSM 1000 approved.
    When addressing a polywrapped FSM 881 or FSM 1000 flat mailpiece, 
if the address label is on the outside of the polywrapped piece, the 
haze requirement is not applicable nor is review of the polywrap by the 
mailpiece design analyst (MDA) prior to mailing.
    Although the Postal Service is extending the discount to pieces 
that can be processed on FSM 1000 equipment, it does not wish to 
encourage mailers to prepare pieces in a manner that would cause them 
to migrate from the more productive FSM 881 to the FSM 1000. In 
addition to productivity concerns, a large migration could also cause 
equipment capacity problems. Therefore, in order to qualify for the 
automation flats rates, mailpieces that meet the current automation 
flat height, length, thickness, and weight dimensions applicable to the 
FSM 881 under DMM C820.2.0 must continue to meet the current 
specifications for turning ability and deflection (current DMM C820.5.0 
and proposed DMM C820.7.0) and if prepared with polywrap, must continue 
to meet all the polywrap criteria in DMM C820.4.0.
    When presorting mail for the automation flat-size rates, pieces 
meeting the FSM 881 dimensions must be prepared in separate packages 
from pieces that meet the FSM 1000 dimensions. When preparing packages 
of pieces meeting the dimensions for the FSM 881, mailers may combine 
pieces of nonidentical weights provided appropriate postage payment 
methods are used. Likewise, within a package of pieces meeting the 
dimensions for the FSM 1000, mailers may combine pieces of non-
identical weights provided appropriate postage payment methods are 
used. Separate package minimums must be met for each type of package, 
e.g. 10 pieces per package for First-Class and Standard Mail (A) and 
six pieces per package for Periodicals). This will allow packages of 
mail to be sorted to the appropriate flats processing

[[Page 55473]]

equipment at sack or tray opening units and at pallet breakdown 
operations.
    Both types of automation flats packages (FSM 881 and FSM 1000 
packages) may be placed in the same tray (First-Class) or in the same 
sack (Periodicals and Standard Mail (A)). For Periodicals and Standard 
Mail (A) both types of automation flats packages (FSM 881 and FSM 1000 
packages) may be placed on the same pallet.
    In addition, for Periodicals sacked mail, FSM 881 and FSM 1000 
packages may be combined with nonautomation packages in 3-digit, SCF, 
ADC, and mixed ADC sacks and/or pallets. Periodicals automation flats 
packages must be placed in separate 5-digit sacks or pallets from 
Periodicals nonautomation packages. For First-Class and Standard Mail 
(A) mailings, automation rate mail must continue to be separately 
trayed (First-Class) or sacked (Standard Mail (A)), or separately 
palletized on five digit pallets from nonautomation rate mail.
    These changes will be included in DMM Issue 54.
    Part A of this notice summarizes major changes that have been made 
to or material added to the proposed implementation standards since the 
proposed rule was published. This includes changes made by the Postal 
Service in response to mailers' comments or for other reasons. Part B 
contains an analysis of comments received on the proposed rule and the 
Postal Service's responses. Part C summarizes the changes to the DMM, 
followed by the text of the revised DMM standards.

A. Major Changes and Additions to the Specifications Outlined in 
the August 26, 1998, Proposed Rule

    1. Overhang (selvage)--The proposed rule required the polywrap 
overhang on the sides of the mailpiece must not be more than \1/4\-
inch. However, it has been determined that the FSM 1000 can process 
flats up to \3/4\-inch overhang from all edges.
    2. Double folds--The proposed rule required newspapers and tabloids 
to have two folds. It has been determined that newspapers are double-
folded and, if any telescoping problems occur, they will be handled on 
a case-by-case basis. Bound tabloid publications appear to remain 
intact in processing operations. However, unbound publications cause 
mail slippage and telescoping problems; therefore, they are required to 
be double-folded, with the second fold perpendicular to the original 
fold. For publishers who are unable to comply at this date, a 2-year 
transition period will be given.
    3. Polywrap marking--The proposed rule require the marking to 
include the company name in the mailpiece identification statement. The 
product name is required instead of the company name for verification 
purposes. In addition, the 6-month transition period for existing 
polywrap markings has been extended to one year, until October 4, 1999.
    4. Package preparation--For periodicals, automation and 
nonautomation packages may not be combined in 5-digit sacks. Therefore, 
Customer Support Ruling 29, dated January 1997, will be rescinded. The 
applicable standards will be published in the DMM.
    5. Wrap direction--The polywrap seam must be along the addressed 
side of the mailpiece, oriented from top to bottom on FSM 881 pieces. 
However, it has been determined that this is not a requirement for a 
FSM 1000 flat-size mailpiece.
    6. Polywrap requirement--When addressing a polywrapped flat-size 
mailpiece the haze and verifying requirements are not applicable if the 
address label is placed on the outside of the polywrapped piece.

B. Summary of Comments From the August 26, 1998, Proposed Rule

    The Postal Service received 21 pieces of correspondence offering 
comments on the August 26, 1998, proposed rule. Respondents included 
four associations and 17 major mailers, publishers, and printers.
    The specific points raised in the comments are presented below, 
organized by general comments and by specific comments on particular 
issues. In addition to receiving numerous comments from the mailing 
industry, the Postal Service has had extensive ongoing exchanges of 
viewpoints with representatives of the mailing industry. This 
cooperative effort has led to the development of revised standards that 
the Postal Service believes strikes a better balance between the 
interests of the mailers and the Postal Service.

1. General Comments

    Ten comments were received concerning the separation of 
specifications for pieces that will run on FSM 881 versus the FSM 1000. 
One commenter stated that having two sets of specifications is 
confusing to the mailers and USPS acceptance staff. One commenter said 
mailers have no control over the type of equipment their mailpieces are 
run on, so they should not be expected to meet different specifications 
to qualify for the same postage rate. Postal management did consider 
these comments. There are two types of FSM's to handle two different 
types of flats. However, USPS operations is concerned about flats that 
are currently processed on the FSM 881 migrating to the FSM 1000 
because of changes in preparation standards. In addition, current 
automation polywrap must be used on the FSM 881 pieces when claiming 
the barcode discount for 881 shaped pieces. Without this standard we 
would see a mass migration by mailers to the less expensive polywrap 
and would result in a substantial diversion of mail to the FSM 1000. 
There are capacity issues (340 FSM 1000 compared to 812 FSM 881) as 
well as productivity, service, and cost concerns. USPS acceptance 
personnel will be receiving instructions from the office of Business 
Mail Acceptance regarding the acceptance and verification procedures 
for these two sets of specifications for flat-size mail qualifying for 
these discount rates.

2. Machinable Parcels Qualifying for the FSM 1000 Discount

    One commenter indicated that they are presently mailing 
nonautomation-compatible parcels that he would qualify as automated 
compatible flats under the new specifications for automated flats. 
However, the requirement relating to package and mail preparation, as 
proposed, will make it cost-prohibitive for them to participate in this 
program. This commenter further asked whether he could mail to an SCF 
level and stack mail in large (mixed) cartons sectioned by SCF instead 
of bags, trays, or pallets. The Postal Service currently allows bundled 
Standard Mail (A) and Periodical Mail to be prepared as packages of 
flats placed on pallets. However, there are sortation requirements in 
DMM M820. Flat-size automation rate First-Class Mail, Periodicals, and 
Standard Mail (A) must be prepared under M820 and meet the eligibility 
standards for the rate claimed. Package, sack, and tray preparations 
are subject to M010, M020, and M030. Firm packages may not be included. 
Trays and sacks must bear the appropriate barcoded container labels 
under M032. In addition, each piece must also include a complete 
delivery address with correct ZIP Code or ZIP+4 code. Address and 
barcode quality is subject to A800 and CASS/MASS standards in A950. For 
Standard Mail (A) mailpieces mailed at rates for the FSM 1000 flats, 
this portion in non-automation rates is subject to the residual shape 
surcharge if these mailpieces do not meet the standards in C050 for a 
letter or a flat.

[[Page 55474]]

3. Polywrap

    Ten commenters were concerned that polywrap requirements for the 
FSM 881 require more expensive polywrap than for mailpieces processed 
on the FSM 1000. Mailers feel this requirement is causing an unfair 
competitive situation and request all mailers be permitted to use the 
same type of polywrap, only complying to property number 2 (haze) in 
order to qualify for automation flats rates. One commenter indicated 
that, based upon the characteristics of the mailpiece, it should be 
left up to operations personnel at the USPS to determine which piece of 
equipment the flats should be processed on. Another commenter 
volunteered time and energy to assist the USPS in a limited time test 
to estimate the probable volume of mail that will migrate from the FSM 
881 to the FSM 1000 because of the polywrap requirements and the 
overall net advantage to the Postal Service of receiving automation 
based mailings from a sector of the publishing industry currently not 
using automation.
    The Postal Service has had extensive ongoing exchanges with USPS 
Engineering and mailers currently using and not using the polywrap 
required for FSM 881. This cooperative effort has led to the 
development of revised polywrap requirements for the FSM 1000. 
Initially, properties 1, 2, and 7 were proposed in workgroup meetings. 
However, the USPS's main concern regarding the FSM 1000 is the 
readability of the barcode. It was agreed that property 1 and 7 did not 
affect readability. In addition, the USPS must maintain separate 
standards for polywrap for operational efficiency. Therefore, pieces 
meeting the FSM 881 processing dimensions must also meet all 7 polywrap 
properties standards in C820.4.0 if polybagged when claiming the 
barcode discount. Without this standard, the USPS would see a mass 
migration by mailers to the less expensive polywrap and a substantial 
diversion of mail to the FSM 1000 causing capacity, service and cost 
problems.

4. Co-Mailing and Selective Binding

    Twelve commenters proposed that the Postal Service allow co-mailers 
and selective binders to mix FSM 881 pieces and FSM 1000 pieces 
together in the same package and use the less expensive polywrap. One 
commenter stated the only possible alternative available to it would be 
to split all of their co-mailings into two mailstreams, one for carrier 
route pieces, and the others for all other levels of presort. They 
further explained that this would cause less finely prepared mail for 
the Postal Service. Several commenters requested reconsideration 
permitting the mix of the FSM 881 and FSM 1000 pieces in co-mail and 
selective bind situations. They also stated that the co-mail and 
selective bind processes are aggressive workshare concepts that should 
not have penalties preventing mailer participation. Another commenter 
stated that mailers who already enter highly workshared and dropshipped 
mail that is otherwise fully automatable should not be discouraged from 
taking part in this automation program by an unnecessary requirement. 
One association indicated that the Postal Service needs to increase FSM 
1000 capacity if a marketplace response to incentives for worksharing 
drives such a need. A ``Blue Ribbon'' Committee task force addressed 
these issues for the Postmaster General in relationship to USPS capital 
expenditures. The USPS Operations position is that the FSM 881 and FSM 
1000 flat-size mailpieces cannot be merged in the same package. 
Allowing the combination of these pieces in the same package would 
result either in FSM 881 pieces diverting to the FSM 1000 or FSM 1000 
pieces rejecting on the FSM 881, depending on the machine on which the 
package was processed. This requirement also leaves the door open in 
the future for possible relaxation of the existing requirement to 
segregate FSM 881 sized automation flats from FSM 881 nonautomation 
flats. The existing FSM 881 will be receiving an OCR modification over 
the next 12 months and the need for automation/nonautomation 
segregation on FSM 881 pieces will be reduced. Therefore, there is a 
long-term value in maintaining a split of FSM 881 and FSM 1000 pieces 
because the auto/nonauto split could possibly be eliminated for the FSM 
881 pieces. The relaxation of the automation/nonautomation separation 
for FSM 881 pieces could be much more beneficial for the overall 
industry since a high percentage of the non-carrier route flats are 
machinable on the FSM 881. Conversations with some industry 
representatives have confirmed the relaxation of the auto/non-auto 
separation for FSM 881 pieces may be a greater need than the ability to 
combine FSM 881 and FSM 1000 pieces. Finally, the combining of FSM 881 
and FSM 1000 pieces is not compatible with the Postal Service's long 
term objective for flats sorting.

5. Increase Thickness and Uniformity of Thickness

    Four commenters indicated that the maximum thickness for an FSM 
1000 piece should be increased to at least 1\1/2\ inches thick. One 
commenter stated that he is satisfied with the minimum and maximum 
standards however, he noted that it is virtually impossible to 
manufacture a six pound publication with a proposed maximum thickness 
of only 1\1/4\ inches. Two commenters believed that if the ability of 
the FSM 1000 was to process thicker pieces depending upon the length of 
the piece, whereas longer pieces must be thinner to be successfully 
processed, then shorter pieces should be able to be thicker and still 
be processed successfully. Several proposals were submitted based on 
this ``sliding scale'' theory. In addition, several commenters would 
like clarification on how the uniformity requirement applies to the FSM 
1000 when individual mailers have watched their machinable parcels run 
through the FSM 1000 with no problem. According to USPS Engineering, 
the maximum thickness of 1\1/4\ inches for the FSM 1000 allows for some 
misalignment of the plastic chutes in relation to the diverter modules 
(transport belts). Items above the maximum thickness will jam against 
the edge of the chutes if the chutes are not precisely aligned. In 
addition, if a mailpiece is not uniform in thickness, the flats flip 
over when they go into the accelerator module of the induction station. 
This results in jams since the photocells will indicate a flat below 
the minimum length when the mailpieces on the corners don't lay flat. A 
uniformly thick flat is on the geometric center of the mailpiece and 
thus will not flip once accelerated to the speed of the sorter. The 
observations made were based on a short run of testing different size 
and thicknesses of mailpieces. The USPS agrees that the possibility 
does exist on increasing the thickness to 1\1/2\ inches thick, however, 
this will entail extensive testing and evaluation by the USPS 
engineering department. The Manager of Mail Preparation and Standards 
will request such testing to be formally performed.

6. Turning Ability and Flexibility

    Four commenters requested that ``flimsy pieces'' that fail the 
deflection test and therefore do not qualify for the FSM 881 automated 
rates be allowed to qualify for the automation rates for the FSM 1000. 
One mailer commented that Standard Mail (A) flats volume has grown over 
the last 5 years while the average piece weight has been decreasing. 
This shows a trend toward more ``flimsy'' type mailpieces as direct 
marketers and catalogers strive to target their customers. The Postal 
Service would like to ensure that FSM 881

[[Page 55475]]

mailpieces are not diverted to the FSM 1000. There are currently 340 
FSM 1000s compared to 812 FSM 881s and the migration of this mail to 
the FSM 1000 could have a direct effect on service and higher costs. 
Allowing the migration is not compatible with the Postal Service's 
long-term direction for sequencing flats in the carrier's line of 
travel.

7. Mailer Identification Statement for Polywrap

    Seven commenters requested an extension of time from the previously 
proposed 6-month grace period to a one-year extension for the 
requirement of separate markings distinguishing FSM 881-approved 
polywrap from FSM 1000-approved polywrap. Mailers have inventories of 
preprinted automatable polywrap already in stock. Two commenters 
suggested that special markings for the FSM 1000 approved polywrap be 
used and the current markings for approved polywrap on the FSM 881 
polywrap continue as a default. Many mailers have a supply of 
preprinted polywrap and a delay will allow them to use up existing 
stock. The Postal Service will require the mailpiece identification 
markings identifying FSM 881 and FSM 1000 polywrap for various reasons. 
Business mail entry employees must be able to determine if the correct 
polywrap is being used to qualify mailpieces for the barcoded rates. 
The Postal Service does understand the comments received regarding 
polywrap in stock and supply, therefore, a one-year transition period 
through October 4, 1999.

8. Overhang (Selvage)

    Four commenters indicated that the overhang requirement for the FSM 
1000 should be increased due to relative trim size in a selective 
polywrap co-mailing process. Variances during a co-mailing run have a 
proportional effect on both the ``head to foot'' and ``side to side'' 
overhang. The following overhang extensions were requested: head to 
foot increase from 1\1/2\ inches to 2\1/4\ inches and side to side 
increase from \1/4\-inch on each side up to 1.375 inches. The Postal 
Service has amended the proposed standard for overhang indicated in 
Exhibit 4.1b, of C820.4.0 to include a separate section for the FSM 
1000 overhang allowance. The Postal Service consulted with USPS 
engineering and the requirement for the FSM 1000 overhang now is a 
maximum of \3/4\-inch from any edge. The requirements for the FSM 881 
remain unchanged.

9. Wrap Direction and Protective Coverings

    One commenter proposed that the Postal Service ``suggest'' 
recommended wrap configuration instead of having a requirement and, in 
addition, allow the MDAs review to be the final deciding factor in 
determining if mailpieces will produce handling and processing 
problems. The Postal Service has worked with USPS Engineering on this 
issue and has taken this request into consideration. After several 
discussions with engineering the Postal Service agrees that the wrap 
direction requirement only need apply to the FSM 881 mailpieces. One 
commenter strongly recommended that the Postal Service eliminate the 
prohibition of protective covers for automated flats to be processed on 
the FSM 1000. This issue is not solely related to the FSM 1000 
requirements and the new specifications. However, the Postal Service 
will continue to evaluate and review mailpieces with the various types 
of protective coverings and possibly relax this requirement.

10. Barcode Placement

    All 21 commenters supported the requirement to place the barcode a 
minimum of \1/8\-inch from any edge; however, three commenters 
requested that the Postal Service remove the language that currently 
states, ``preferably 2 inches from the bound or folded edge.'' These 
commenters are concerned that Entry employees will misinterpret this 
requirement and possibly reject their mail. Business Mail Acceptance at 
USPS Headquarters is disseminating to all managers, business mail entry 
to ensure situations like this do not occur.
    Therefore, the Postal Service is retaining this preference in the 
final rule.

11. Double-Folds

    Four commenters expressed their concerns about the proposed 
standards that newspapers and other unbound flats must have two folds, 
the second fold perpendicular to the original fold. One commenter 
explained that 25% to 30% his mailed copies contain supplements and 
inserts which, due to thickness, prevent secure quarter-folding. 
Currently, one commenter stated that they are working closely with USPS 
engineering employees on possible solutions to the ``telescoping'' 
problems with a new ``embossing'' procedure. Another commenter believes 
the telescoping of tabloids on the FSM 1000 is greatly exaggerated. The 
Postal Service has had numerous discussions with USPS Engineering on 
this issue, and it has been determined that unbound flat-sized mail 
pieces without a second fold cause the most problems with telescoping 
such as the body of the mailpiece separating from the inner sheets 
during postal processing on the FSM 1000. Therefore, the requirement 
for this final rule is that any unbound flat-size mailpieces will be 
required to be double-folded by October 4, 2000. A transition of 2 
years will be extended to publishers and printers who are unable to 
comply.

C. Summary of Domestic Mail Manual (DMM) Changes and Additions

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 III).

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001, 
3011, 3201,3219, 3403, 3406, 3621, 3626, 5001.

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

Domestic Mail Manual (DMM)
C  Characteristics and Content
C800  Automation-Compatible Mail
* * * * *
C820  Flats
    [Amend 1.0 by changing the term ``2.0'' to ``1.0'' and ``7.0'' to 
``9.0'' and adding additional standards for FSM 881 and FSM 1000 pieces 
to read as follows:]
1.0  BASIC STANDARDS
    Flats claimed at automation rates must meet the standards in 1.0 
through 9.0 and the general and specific standards for mailability and 
the class of mail and rate claimed. Pieces meeting the dimensions for 
FSM 881 processing under 2.0 (height, length, thickness, and weight) 
must also meet the turning ability and deflection requirements in 7.0 
in order to qualify for the automation flats discount. If polywrap is 
used with FSM 881 pieces meeting the dimensions under 2.0, the polywrap 
must meet all of the physical properties in Exhibit C820.4.1a of 
section 4.0 in order to qualify for the automation flats discount. 
Pieces that do not meet the dimensions for height, length, thickness, 
and weight under 2.0 (FSM 881 pieces), but that do meet the dimensions 
in 3.0

[[Page 55476]]

are eligible for processing on the FSM 1000. Such FSM 1000 pieces need 
not meet the turning ability and deflection requirements in 7.0. If 
prepared with polywrap, the polywrap for FSM 1000 pieces must meet only 
physical property number 2 (haze) in Exhibit 4.1a.
    [Amend the heading of 2.0 to read as follows.]
2.0  DIMENSIONS FOR FSM 881 PROCESSING
* * * * *
    [Delete the second sentence of section 2.3 b(2).]
* * * * *
    [Redesignate 3.0 through 7.0 as 5.0 through 9.0, respectively. 
Insert new 3.0 and 4.0 to read as follows.]
3.0  DIMENSIONS FOR FSM 1000 PROCESSING
3.1  Determining Length and Height
    The length and height of an automation compatible flat-size 
mailpiece eligible for FSM processing is not determined by the 
orientation of the address. It is determined by the following:
    a. For a piece prepared as a single sheet or in an envelope, full-
length wrapper, or full-length sleeve, the length is the longest 
dimension. The height is the dimension perpendicular to the length.
    b. For a piece that has a bound or folded edge (e.g., a newspaper, 
tabloid, and catalog), the length is the dimension parallel to the 
bound or folded edge. The height is the dimension perpendicular to the 
length. If the piece is folded more than once or bound and then folded, 
the length of the mailpiece is based on the final fold.
3.2  Address Placement and Folded Pieces
    a. A flat-size mailpiece with a final fold must be designed so that 
the address is in view when the final folded edge is to the right and 
any intermediate bound or folded edge is at the bottom.
    b. Unbound flat-size mailpiece will be required to be double-folded 
on October 4, 2000.
3.3  Shape and Size
    Pieces must meet the following requirements:
    a. Height: no more than 12 inches or less than 4 inches.
    b. Length: no more than 15\3/4\ inches or less than 4 inches.
    c. Minimum thickness:
    (1) For pieces at least 5 inches long, 0.009 inch.
    (2) For pieces at least 4 inches long, but less than 5 inches long, 
0.25 inch thick.
    d. Maximum thickness:
    (1) For pieces 13 inches long or less, 1.25 inches.
    (2) For pieces longer than 13 inches up to and including 15\3/4\ 
inches, \7/8\ inch.
3.4  Maximum Weight
    Maximum weight limits are as follows:
    a. For First-Class Mail, 11 ounces (13 ounces as of January 10, 
1999).
    b. For Periodicals, 6 pounds.
    c. For Standard Mail (A), less than 16 ounces.
4.0  COVERINGS
4.1  Polywrap Films
    The Postal Service will allow plastic manufacturers to use the 
results of their American Standard Testing Methods (ASTM). Product 
tests must be used to certify that the polywrap films meet or exceed 
the minimum requirements for the physical properties outlined in 
Exhibit 4.1a and 4.1b.
Exhibit 4.1a
FSM 881  Polywrapped Flats Specifications
    Automation flat pieces that meet the height, length, thickness, and 
weight dimensions for the FSM 881 in 2.0 must meet all seven 
properties. Automation flat pieces that do not meet the height, length, 
thickness, or weight dimensions in 2.0, but meet the dimensions for the 
FSM 1000 in 3.0, may be prepared with polywrap that only meets property 
number 2 (haze).

----------------------------------------------------------------------------------------------------------------
             Property                       Requirement                 Test Method                Comment
----------------------------------------------------------------------------------------------------------------
1. Kinetic Coefficient of           <0.28.....................  ASTM D1894                  Stainless steel
 Friction, MD.                                                                               finish must be in
                                                                                             accordance with
                                                                                             ASTM A 480/A 480M.
a. Film on Stainless Steel with
 No. 8 (Mirror) Finish
b. Film on Film...................  0.20 to 0.40..............  ASTM D1894
2. Haze...........................  <70.......................  ASTM D1003                  Address labels are
                                                                                             an alternative to
                                                                                             meeting this
                                                                                             requirement.
3. Secant Modulus, 1% elongation..  >40,000...................  ASTM D882
a. TD, psi
b. MD, psi........................  >50,000...................  ASTM D882
4. Tensile Strength:
    a. TD, psi....................  >2,000....................  ASTM D882
    b. MD, psi....................  >3,000....................  ASTM D882
5. Density, g/cc..................  0.900 to 0.950............  ASTM D1505
6. Nominal Gauge, in..............  >0.001....................  ASTM D374
7. Static Charge, kV..............  <2.0......................  ASTM D4470                  Antistatic additives
                                                                                             can regulate this
                                                                                             charge.
----------------------------------------------------------------------------------------------------------------

Exhibit 4.1b
Wrap Instruction
    1. The polywrapped flat shall be machinable according to USPS-STD-
28A and as outlined in section C820. Shrinkwrapped mailpieces shall be 
approved if they conform to the machinable flat requirements according 
to USPS-STD-28A and as outlined in DMM 54 section C820.
    2. Wrap direction shall be specified as around the shorter axis of 
the mailpiece so that the seam is along the addressed side of the 
mailpiece, oriented from top to bottom. This seam must not cover any 
part of the address and barcode read areas (FSM 881 mailpieces only).
    3. Overhang around edges:
    a. For FSM 881 mailpieces, overhang (selvage) of not more than 1.5 
inches of polywrap shall be allowed at the top of the mailpiece when 
the contents are at the bottom of the package. Overhang on each side 
shall not be more than .25 inch, however. The piece shall not be 
wrapped so tightly as to cause the product to bend.
    b. For FSM 1000 mailpieces, overhang (selvage) cannot exceed \3/4\ 
inch from any edge.
4.2  Polywrap Certification Process
    The polywrap certification program requires plastic manufacturers 
to provide to the producer of the polywrapped flats an official ASTM 
certification of conformance verifying that their polywrap product 
meets the

[[Page 55477]]

physical properties described in Exhibit 4.1a. Prior to the initial 
mailing with that polywrap product, the producer of the polywrapped 
pieces must submit for evaluation barcoded sample pieces that meet both 
applicable DMM mailing standards for automated flats and the minimum 
standards for polywrapped flats including the configuration 
requirements described in Exhibit 4.1b. Mailpiece design analysts 
(MDAs) may authorize the producer of the polywrapped flats that it may 
claim the automation rates for their initial mailing of flat-size 
barcoded pieces if both of the following conditions are met: (A) The 
pieces are prepared in a polywrap product for which the plastics 
manufacturer provides an official ASTM certification of conformance; 
(B) The prepared mailpiece meets all other mail preparation standards 
for polywrapped flats such as overhang, seam, and barcode readability. 
The MDA who authorizes the producer of the polywrapped flats that it 
may claim the automation rates will notify the applicable business mail 
entry unit of the authorization.
4.3  Submission of Samples for Evaluation
    A producer of polywrapped flats who wishes to obtain authorization 
to claim automation rates for that polywrap product must submit samples 
to the Manager of Business Mail Entry for review by an MDA. Each sample 
submitted must consist of at least 30 polywrapped and barcoded sample 
mailpieces with a certification of conformance verifying that the 
polywrap material meets the physical property specifications in Exhibit 
4.1a and Exhibit 4.1b, for either the FSM 881 mailpieces or the FSM 
1000 mailpieces. If the address is placed on the outside of the 
polywrapped FSM 1000 flat, the submission of test pieces is not 
required.
4.4  Mailpiece Identification
    Producers of polywrapped flats authorized to claim the automation 
rates must endorse the flats to show that they are automation-
compatible polywrapped flat-size pieces. The mailer may meet this 
requirement by adding ``USPS (product name of polywrap) FSM 881 
Approved Automatable Polywrap'' or ``USPS (product name of polywrap) 
FSM 1000 Approved Automatable Polywrap,'' as applicable, on the address 
side of the piece, preferably below the postage area or in another 
visible location on the outside of the mailpiece. The polywrap marking 
must not interfere with the delivery address or the recognition of the 
barcode. The polywrap marking may also be printed directly on the 
polywrap material. Producers of polywrapped flats not currently using 
the appropriate mailpiece identification marking will have until 
October 4, 1999, to comply with this standard. For a list of USPS-
approved polywrap manufacturers, refer to the USPS website.
4.5  Suspension of Approval
    Any mailing found to be improperly prepared will not be accepted at 
the automation rates for flats. The repeated submission of 
nonmachinable mailings is cause for exclusion from the polywrap flat 
automation rates for polywrap pieces.
    [Delete renumbered 5.1. Renumber 5.2 and 5.3 as 5.1 and 5.2.]
* * * * *
6.0  TABS, WAFER SEALS, TAPE, AND GLUE
    [Amend the first sentence in renumbered 6.0 to clarify that tabs, 
seals, tape, and glue are not required, to read as follows:]
    Although not required, mailpieces may be prepared with tabs, wafer 
seals, cellophane tape, or permanent glue (continuous or spot) if these 
sealing devices do not interfere with the recognition of the barcode, 
rate marking, postage information, and delivery and return addresses.
* * * * *
7.0  TURNING ABILITY AND DEFLECTION
7.1  Turning Ability
    [Amend the first sentence of renumbered 7.1 by adding ``881'' to 
read as follows:]
    A flat-size mailpiece meeting the FSM 881 dimensions in 2.0 must 
fit between two concentric arcs drawn on a horizontal flat surface, one 
with a radius of 15.72 inches and the other with a radius of 16.72 
inches in one of these ways:
* * * * *
    [Renumber Exhibits 5.1a and 5.1b as Exhibits 7.1a and 7.1b.]
7.2  Deflection
    [Renumber Exhibit 5.2 as Exhibit 7.2; amend renumbered 7.2 by 
adding ``881'' to read as follows:]
    A flat-size mailpiece meeting the FSM 881 dimensions in 2.0 must be 
sufficiently rigid so that, when placed flat on a surface to extend 
unsupported 5 inches off that surface, no part of the edge of the piece 
that is opposite the bound, folded, or final folded edge (as 
applicable) deflects more than 1\3/4\ inches (if the piece is less than 
\1/8\ inch thick) or more than 2\3/8\ inches (if the piece is from \1/
8\ to \3/4\ inch thick). See Exhibit 7.2.
* * * * *
C840  Barcoding Standards
* * * * *
3.0  BARCODE LOCATION--FLAT-SIZE PIECE
    [Revise 3.0 to read as follows:]
    On any flat-size piece claimed at an automation rate, the barcode 
may be anywhere on the address side that is at least 1/8 inch from any 
edge of the piece. For FSM 1000 pieces, it is preferred that the 
barcode be placed at least 2 inches from the dimension that is the 
length for that type of automation piece (the longest edge, or for 
pieces with a folded or bound edge, the folded or bound edge). That 
portion of the surface of the piece on which the barcode is printed 
must meet the reflectance standards in 5.0. The address side may bear 
only one POSTNET-format barcode (i.e., the correct barcode for the 
delivery address on the mailpiece). Other mailer-applied non-POSTNET 
barcodes may appear on the address side if their format is not 
intelligible or not confusing to automated postal equipment. Address 
block barcodes are subject to the standards in 2.5a through 2.5e.
* * * * *
M  Mail Preparation and Sortation
M820  Flat-Size Mail
1.0  BASIC STANDARDS
* * * * *
1.5  Package Preparation
    All pieces must be prepared in packages. Firm packages must not be 
included in mailings prepared under M820. Pieces meeting the size 
dimensions for the FSM 881 under C820.2.0 must be prepared in separate 
packages from pieces that do not meet the FSM 881 dimensions (but that 
meet the dimensions for FSM 1000 processing). Each FSM 881 package and 
each FSM 1000 package must separately meet the package size minimum 
number of pieces in M820.2.1, 3.1, or 4.1 as applicable for the class 
of mail. When the total number of FSM 881 or FSM 1000 pieces for a 
specific presort destination (e.g., the 5-digit ZIP Code 12345) meets 
or exceeds the applicable minimum package size, the pieces for that 
presort destination must be prepared into a package or packages labeled 
to that presort destination in accordance with the standards for the 
rate claimed. The physical size of each package for that specific 
presort

[[Page 55478]]

destination may contain the exact package minimum, more pieces than the 
package minimum, or fewer pieces than the package minimum depending on 
the size of the pieces in the mailing or the total quantity of the 
pieces to that destination. Rate eligibility is not affected when a 
physical package for a presort destination contains fewer pieces than 
the minimum package size for the above reasons, provided the total 
number of FSM 881 pieces physically packaged for that presort 
destination, or provided the total number of FSM 1000 pieces physically 
packaged for that presort destination, meets or exceeds the rate 
eligibility package minimum under E140, E240, or E640.
    [Renumber 1.6 and 1.7 as 1.7 and 1.8, respectively, and insert new 
1.6 to read as follows:]
1.6  Sack Preparation
    Mailers may combine FSM 881 packages and FSM 1000 packages in the 
same tray (First-Class Mail) or in the same sack (Standard Mail (A) and 
Periodicals).
* * * * *
    [Amend the heading of renumbered 1.8 to read ``Exception--
Periodicals Packages.'']
    [Insert new 1.9 to read as follows:]
1.9  Exception--Periodicals Automation and Nonautomation
    For Periodicals, packages of automation mail (both FSM 881 and FSM 
1000 packages) prepared under 3.1 and packages of nonautomation mail 
prepared under M200.2.4c through f may be sacked together under 3.2d 
through 3.2e. Automation and nonautomation packages may not be combined 
in 5-digit sacks. Under this exception, documentation required under 
P012 must identify the mail claimed at each rate by package and sack 
sortation level. Under this exception, nonautomation mail continues to 
qualify for rates under E230 and automation mail continues to qualify 
for rates under E240 (i.e., rates for pieces in automation flats 
packages are based on the package level and rates for pieces in 
nonautomation flats packages are based on the package and sack level).
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-27674 Filed 10-9-98; 3:45 pm]
BILLING CODE 7710-12-P