[Federal Register Volume 64, Number 66 (Wednesday, April 7, 1999)]
[Rules and Regulations]
[Pages 16814-16840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8400]


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POSTAL SERVICE

39 CFR Part 111


Domestic Mail Manual Changes To Implement New Labeling List L001 
and To Implement Package Reallocation for Periodicals and Standard Mail 
(A) Flats Placed on Pallets

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule amends the Domestic Mail Manual (DMM) to 
implement new labeling list L001, 5-Digit Scheme--Periodical Flats and 
Irregular Parcels and Standard (A) Flats, and to offer mailers an 
option to use package reallocation to protect the sectional center 
facility (SCF) pallet level for Periodicals flats and irregular parcels 
and Standard Mail (A) flats.

EFFECTIVE DATE: July 29, 1999.

FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166 or Barry 
Elliott, (202) 268-2731.

SUPPLEMENTARY INFORMATION: On October 29, 1998, the Postal Service 
published for public comment in the Federal Register a proposed rule 
(63 FR 57970-57996) regarding the implementation of labeling list L001 
and package reallocation. The Postal Service also invited comments on 
the proposed rule from interested parties and accepted comments through 
December 28, 1998. This final rule contains the DMM standards adopted 
by the Postal Service after review of the comments that were submitted.

Evaluation of Comments Received

    The Postal Service received 11 pieces of correspondence offering 
comments

[[Page 16815]]

on the October 29 proposed rule. Respondents included major mailer 
associations, individual publishers, printers, service bureaus, and 
mailers. Nearly all of the commenters were supportive of either one or 
all of the components of the proposed rule. However, many of the same 
commenters who voiced support for the proposed rule also conveyed 
various levels of uncertainty as to how their specific mailings would 
be impacted by L001 and/or package reallocation. Many of these 
commenters, therefore, suggested that the Postal Service should 
implement both L001 and package reallocation optionally as opposed to 
requiring either or both components. It was felt that implementing both 
components optionally would allow more time for additional modeling and 
also provide mailers with the flexibility to determine the most 
appropriate combination of these options for their specific mailing(s). 
Based on these comments, as well as other concerns that are mentioned 
below, the Postal Service has elected to implement both L001 and 
package reallocation as optional preparation methods with an effective 
date of July 29, 1999.

Optional Implementation

    By implementing both L001 and package reallocation as optional 
preparation methods, mailers will have the ability to mitigate any of 
the concerns that were cited during the comment period. Mailers will be 
able to selectively utilize none, one, or both options as they deem 
appropriate for their specific mailing. By appropriately tailoring the 
utilization of these options to their specific mailing, mailers should 
be able to avoid the undesired results noted in some of the comments. 
Potential undesirable results that were cited as possibilities 
depending on the size and/or density of a mailing were: (1) An increase 
in the number of sacks, (2) an increase in the amount of mail on ADC or 
BMC pallets (if package reallocation is not used), and (3) an 
inordinate amount of mail being moved from 5-digit pallets to SCF 
pallets. Several different alternatives were suggested to alleviate 
these undesirable results. The alternatives varied from lowering the 
minimum weight for pallets to creating a transfer hub pallet for 
Periodicals. These alternatives are no longer entirely relevant given 
that the Postal Service will allow the mailer to choose the option(s) 
that are most appropriate for their mailings. Prior to preparing a 
specific mailing, mailers should remain cognizant of the potential 
undesirable results and therefore choose to experiment with different 
combinations of the two options to determine the most appropriate 
setup.
    Other comments also factored into the decision to make both L001 
and package reallocation optional. Two commenters expressed concerns 
about L001 being a required pallet level because some palletized 
mailings do not use palletization software. In these instances, it was 
stated that the creation of an L001 pallet, if prepared manually 
without software, would slow down and/or complicate production. 
Accordingly, the commenters requested palletized mailings that are not 
prepared with palletization software be exempt from using L001. 
Although the Postal Service has decided to implement L001 as an 
optional preparation method, and thus alleviate this concern 
temporarily for mailers not using palletization software, it remains 
likely the Postal Service will require the use of L001 for all 
palletized Standard (A) and Periodicals flat mailings at some point in 
the future. For ZIP Codes that are included on L001, it is more 
appropriate for service and cost reasons for the Postal Service to 
receive one L001 pallet instead of multiple 5-digit pallets because all 
of the mail for the zones listed in a given combination are processed 
at the same facility. The use of L001 facilitates greater presort 
density, which can yield more ``cross-dock'' pallets for plants and 
provide more timely service to mailers. Hence, there are operational 
and service efficiencies to be gained from making L001 a required level 
of preparation. Mailers that are not currently using palletization 
software to prepare pallets should therefore begin evaluating how 
palletization software can be integrated into their production 
processes in the future, in order to be prepared for a change that 
would require the usage of L001. Likewise, mailers that are already 
using palletization software to prepare pallets are strongly encouraged 
to utilize L001 because this list reflects the way the mail is 
processed by postal operations.
    One commenter expressed concern regarding the requirement that 
reallocation could be performed only with Presort Accuracy Validation 
and Evaluation (PAVE)-certified software. The concern pertains to the 
portion of the mailing community that uses in-house-developed software 
applications. The commenter remarked that there are marketplace factors 
which compel commercial software vendors to attempt PAVE certification 
and that those same factors do not apply to in-house developed software 
applications. Therefore, the commenter requested that the requirement 
be amended to ``PAVE certified software or approved documentation.'' 
The same commenter, as well as two other commenters, also expressed 
concern about requiring the implementation of labeling list L001 by May 
1999. They noted many companies are having to devote computer 
programmers to the Y2K bug and resources are therefore limited for new 
development. One of these three commenters also requested that a longer 
lead time (12 weeks) be provided between the date that software is 
PAVE-certified and the implementation date. Since both L001 and package 
reallocation will now be optional, developers of in-house software 
applications will be able to work on this initiative in a less frenetic 
manner. As noted earlier, the implementation date for L001 and package 
reallocation will be July 29, 1999. In the interest of providing the 
requested lead time between certification and implementation, PAVE 
testing of L001 and package reallocation will be made available to 
interested parties beginning in April.

Additional Comments

    Communication regarding rate impact--One commenter noted that the 
Postal Service should emphasize the proposed changes will not have any 
impact on rates. The comment is noted and the Postal Service reminds 
mailers that rates for packages of flats on pallets are based on the 
presort level of the package, not the presort level of the pallet.

Availability of Labeling List L001 in an Electronic Format

    --One commenter requested that labeling list L001 should be made 
available in an electronic format in order to eliminate the need for 
developers to manually build a table of the information. Moreover, the 
commenter requested that the list should be made available through a 
mechanism that would facilitate quicker, if not, real-time updates. 
Another commenter questioned if the publication of the L001 list in the 
DMM would eventually result in the 5-digit scheme list, which is used 
for automation letters, being published in the DMM instead of the 
current mechanism (AMS City/State file). The same commenter also 
expressed concern about potential confusion among mailers regarding the 
L001 list and the 5-digit scheme list for letter-size mail.
    The Postal Service recognizes the need for labeling lists, such as 
L001, to be provided to software developers and mailers in an 
electronic format. Realistically, making labeling lists

[[Page 16816]]

available in an electronic format is the first step in facilitating 
quicker updates to mailers. An effort has been underway for some time 
to provide this format, and is currently nearing completion. The USPS/
Mailers Technical Advisory Committee (MTAC) Presort Optimization Work 
Group will be involved in the final stages of this effort to assure 
that appropriate file formats are provided. The Postal Service does not 
anticipate mailers having difficulty in discerning the difference 
between the 5-digit scheme list and L001. The 5-digit scheme list 
applies only to barcoded letters and L001 applies only to pallets and 
5-digit Carrier Routes sacks of Periodicals flats and irregular parcels 
and Standard (A) flats.
    Impact of L001 pallets on delivery units--One commenter expressed 
concerns regarding non-carrier route pieces being shipped to delivery 
units only to be returned to a plant because the sortation to carrier 
route is performed at the plant. The commenter suggested the Postal 
Service should require mailers to place a CRRT designation on the 
address label of every piece of mail in order to facilitate manual 
distribution of this mail by nonscheme-trained clerks at the delivery 
unit. This would help to alleviate the need to send the mail back to 
the plant for distribution to carrier route.
    The scenario outlined by the commenter is not necessarily an 
outgrowth from the implementation of L001. There are already instances 
where a delivery unit receives non-carrier route mail on a 5-digit 
pallet and the unit must decide how to best handle that mail. In many 
cases, the amount of non-carrier route pieces is the determining factor 
in whether the mail is worked at the delivery unit or returned to the 
plant. Field sites have received guidance on how L001 should be used 
and how it can benefit them. Based on that information, field sites 
have listed only the zone combinations they deem appropriate for their 
specific service area. Operations at Postal Service Headquarters is 
currently discussing other possible changes to pallet standards in the 
future that could better remedy this situation and will soon begin 
discussions with field sites for their input. It should be noted that 
the destination delivery unit (DDU) rate will be available for mail on 
a 5-digit scheme pallet prepared using L001 for all carrier route rate 
Periodicals or Enhanced Carrier Route rate Standard Mail (A) on the 
pallet when the pallet is deposited at the facility designated by the 
Postal Service as the location where the carrier cases the mail based 
on the ``Label To'' Zip Code on the pallet label.

List of Subjects in 39 CFR part 111

    Postal Service.
    Accordingly, the Postal Service 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]

    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, 407, 
3001-3011, 3201-3219, 3403-3406, 3621, 5001.
    Revise the following sections of the Domestic Mail Manual as 
follows:

E  Eligibility

E200  Periodicals

* * * * *

E230  Nonautomation Rates

* * * * *

2.0  CARRIER ROUTE RATES

* * * * *

2.2  Eligibility

* * * * *
[Amend 2.2 by revising 2.2a to add the word ``scheme'' before ``carrier 
routes sacks'' and add new sentence as follows:]

    a. The basic carrier route rate applies to copies in carrier route 
packages of six or more letter-size pieces each that are sorted to 
carrier route, 5-digit carrier routes, or 3-digit carrier routes trays; 
and six or more flat-size pieces or irregular parcel-size pieces each 
that are sorted to carrier route, 5-digit, or 5-digit scheme carrier 
routes sacks. (Preparation of 5-digit scheme carrier routes sacks is 
optional, but, if performed, must be done for all 5-digit scheme 
destinations.)
* * * * *

E250  Destination Entry

* * * * *
2.0  DDU RATE

2.1  Eligibility

[Amend the second sentence of E250.2.1 by adding the word ``scheme'' 
before ``carrier routes sacks'' as follows:]

    * * * Copies claimed at DDU rates must be part of a carrier route 
package placed in a carrier route tray or sack, a 5-digit carrier 
routes tray or sack, or, for flats and irregular parcels, a 5-digit 
scheme carrier routes sack, under M200, or be palletized under M045, 
and otherwise eligible for and claimed at a carrier route rate. * * *
* * * * *

E600  Standard Mail

* * * * *

E620 Nonautomation Standard Mail (A) Rates

* * * * *
2.0  ENHANCED CARRIER ROUTE RATES
* * * * *

2.8  Basic Rates

[Amend E630.2.8 by revising 2.8b to add the word ``scheme'' before 
``carrier routes sacks'' and add new sentence as follows:]
    Basic (nonautomation) carrier route rates apply to each piece that 
is sorted under M620 into the corresponding qualifying groups:
* * * * *
    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 or 5-digit 
scheme carrier routes sack. (Preparation of 5-digit scheme carrier 
routes sacks is optional, but, if performed, must be done for all 5-
digit scheme destinations.)
* * * * *

E650  Destination Entry

E651  Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
7.0  DDU DISCOUNTS
* * * * *

7.2  Eligibility

[Amend E651.7.2 by revising the first sentence to provide DDU rate 
eligibility for carrier route flats placed in 5-digit scheme carrier 
routes sacks, as follows:]
    Pieces in a mailing that meet the standards in 1.0 through 4.0 and 
7.0 are eligible for the DDU rate when deposited at a DDU, addressed 
for delivery within that facility's service area (carrier routes), and 
placed in properly prepared and labeled carrier route packages sorted 
to carrier route trays (letters) or sacks (flats and irregular 
parcels), 5-digit carrier routes trays (letters) or sacks (flats and 
irregular parcels), or 5-digit scheme carrier routes sacks (flats) 
under M600, or palletized under M045, and otherwise eligible for and 
claimed at a carrier route rate. * * *
* * * * *

[[Page 16817]]

L  Labeling Lists

L000  General Use

[Add labeling list L001 as follows:]

L001  5-Digit Scheme--Periodicals Flats and Irregular Parcels and 
Standard (A) Flats

    When 5-digit scheme sort is used for Periodicals flats and 
irregular parcels packages and Standard Mail (A) flats packages, mail 
for the 5-digit ZIP Codes shown in Column A must be combined on pallets 
or in carrier routes sacks labeled to the corresponding destination 
shown in Column B.

BILLING CODE 7710-12-P

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BILLING CODE 7710-12-C

[[Page 16836]]

M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS

1.1  Presort Process

[Amend M011.1.1 to incorporate a reference to package reallocation to 
read as follows:]
    Presort is the process by which a mailer prepares mail so that it 
is sorted to at least the finest extent required by the standards for 
the rate claimed. Generally, presort is performed sequentially, from 
the lowest (finest) level to the highest level, to those destinations 
specified by standard and is completed at each level before the next 
level is prepared. Under standards for package reallocation for 
Periodicals flats and irregular parcels and Standard Mail (A) flats on 
pallets (see M041 and M045), mail will not necessarily be placed on the 
lowest (finest) level pallets (package reallocation is optional, but, 
if performed, must be done for the complete mailing job). Not all 
presort levels are applicable in all situations.

1.2  Presort Levels

[Amend M011.1.2 by revising 1.2d and adding new 1.2e and 1.2f to 
differentiate between 5-digit schemes for automation letters and 5-
digit schemes for pallets and for carrier routes sacks of Periodicals 
flats and irregular parcels and Standard Mail (A) flats; redesignate 
current M011.1.2e through M011.1.2m as M011.1.2g through M011.1.2o, 
respectively, as follows:]
    Terms used for presort levels are defined as follows:
* * * * *
    d. 5-digit scheme (trays) for automation letters: the ZIP Code in 
the delivery address on all pieces is one of the 5-digit ZIP Code areas 
processed by the USPS as a single scheme, as shown in the USPS City 
State File.
    e. 5-digit scheme carrier routes (sacks) for Periodicals flats and 
irregular parcels and Standard Mail (A) flats: the ZIP Code in the 
delivery address on all pieces in carrier route packages begins with 
one of the 5-digit ZIP Code zones processed by the USPS as a single 
scheme, as shown in L001.
    f. 5-digit scheme (pallets) for Periodicals flats and irregular 
parcels and Standard Mail (A) flats: The ZIP Code in the delivery 
address on all pieces begins with one of the 5-digit ZIP Code zones 
processed by the USPS as a single scheme, as shown in L001.
* * * * *

1.3  Preparation Instructions

* * * * *
[Amend 1.3 by revising the first sentence of 1.3g to insert the phrase 
``for automation letters''; inserting new 1.3h and i to define 5-digit/
scheme sort for carrier routes sacks of Periodicals flats and irregular 
parcels and Standard Mail (A) flats and 5-digit/scheme sort for 
Periodicals flats and irregular parcels packages and Standard Mail (A) 
flats packages on pallets; redesignate 1.3h through s as 1.3j through 
u, respectively, to read as follows:]
    g. A 5-digit scheme sort for automation letters yields * * *
    h. A 5-digit/scheme carrier routes sort for sacked carrier route 
rate Periodicals flats and irregular parcels and Enhanced Carrier Route 
rate Standard Mail (A) flats yields 5-digit scheme carrier routes sacks 
for those 5-digit ZIP Codes listed in L001 and 5-digit carrier routes 
sacks for other areas. The 5-digit ZIP Codes in each scheme are treated 
as a single presort destination subject to a single minimum sack 
volume, with no further separation by 5-digit ZIP Code required. Sacks 
prepared for a 5-digit scheme destination that contain carrier route 
packages for only one of the schemed 5-digit areas are still considered 
5-digit carrier route scheme sorted and are labeled accordingly. The 5-
digit/scheme sort is optional for carrier route rate flat-size and 
irregular parcel Periodicals and flat-size Enhanced Carrier Route rate 
Standard Mail (A) in sacks. If preparation of 5-digit scheme carrier 
routes sacks is performed, it must be done for all 5-digit scheme 
destinations. A 5-digit/scheme carrier route sort may not be used for 
mail at other rates in sacks.
    i. A 5-digit/scheme sort for Periodicals flats and irregular 
parcels and Standard Mail (A) flats prepared as packages on pallets 
yields 5-digit scheme pallets for those 5-digit ZIP Codes listed in 
L001 and 5-digit pallets for other areas. The 5-digit ZIP Codes in each 
scheme are treated as a single presort destination subject to a single 
minimum pallet volume, with no further separation by 5-digit ZIP Code 
required. Pallets prepared for a 5-digit scheme destination that 
contain packages for only one of the schemed 5-digit areas are still 
considered 5-digit scheme sorted and are labeled accordingly. The 5-
digit/scheme sort is optional for flat-size and irregular parcel-size 
Periodicals and flat-size Enhanced Carrier Route rate Standard Mail (A) 
prepared as packages on pallets and may not be used for other mail 
prepared on pallets, except for packages of Standard Mail (A) irregular 
parcels that are part of a mailing job that is prepared in part as 
palletized flats at automation rates. If preparation of 5-digit scheme 
pallets is performed, it must be done for all 5-digit scheme 
destinations.
* * * * *

M030  Containers

M031  Labels

* * * * *
4.0  PALLET LABELS
* * * * *

4.8  Delivery Unit, SCF, DDU, and DSCF Rates

[Amend M031.4.8 to refer to 5-digit scheme pallets, as follows:]
    If a 5-digit, 5-digit scheme, 3-digit, or SCF pallet contains 
copies claimed at Periodicals delivery unit and SCF zone rates, or 
Standard Mail DDU and DSCF rates, as applicable, the content line of 
the pallet label must show the designation ``DDU/SCF,'' after the 
content description.
* * * * *
5.0  SECOND LINE CODES
[Amend 5.0 to include code for 5-digit scheme carrier routes sacks, as 
follows:]
    The codes shown below must be used as appropriate on Line 2 of 
sack, tray, and pallet labels.
* * * * *

------------------------------------------------------------------------
                Content                                Code
------------------------------------------------------------------------
Scheme.................................  SCH.
                                         (Periodicals and Standard Mail
                                          (A) 5-digit scheme carrier
                                          routes sacks and 5-digit
                                          scheme pallets only).
------------------------------------------------------------------------

* * * * *

M032  Barcoded Labels

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

Exhibit 1.3a  3-Digit Content Identifier Numbers

[Amend Exhibit 1.3a, Periodicals (PER) and Standard (A) by inserting 
new 5-digit scheme carrier routes sacs and 5-digit scheme Enhanced 
Carrier Routes sacks categories, respectively, to read as follows:]
* * * * *

[[Page 16837]]



----------------------------------------------------------------------------------------------------------------
              Class and mailing                       CIN                   Human-readable content line
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
              Periodicals (Per)
 
*                  *                  *                  *                  *                  *
                                                        *
PER Flats--Carrier Route:
 
*                  *                  *                  *                  *                  *
                                                        *
5-digit carrier routes sacks.................                386  PER FLTS CR-RTS
5-digit scheme car. rts. sacks...............                371  PER FLTS CR-RTS SCH
 
*                  *                  *                  *                  *                  *
                                                        *
PER Parcels--Carrier Route:
 
*                  *                  *                  *                  *                  *
                                                        *
5-digit carrier routes sacks.................                396  PER IRREG CR-RTS
5-digit scheme car. rts. sacks...............                399  PER IRREG CR-RTS SCH
 
*                  *                  *                  *                  *                  *
                                                        *
              Periodicals (News)
 
*                  *                  *                  *                  *                  *
                                                        *
NEWS Flats--Carrier Route:
 
*                  *                  *                  *                  *                  *
                                                        *
5-digit carrier routes sacks.................                486  NEWS FLTS CR-RTS
5-digit scheme car. rts. sacks...............                471  NEWS FLTS CR-RTS SCH
 
*                  *                  *                  *                  *                  *
                                                        *
NEWS Parcels--Carrier Route:
 
*                  *                  *                  *                  *                  *
                                                        *
5-digit carrier routes sacks.................                496  NEWS IRREG CR-RTS
5-digit scheme car. rts. sacks...............                499  NEWS IRREG CR-RTS SCH
 
*                  *                  *                  *                  *                  *
                                                        *
              Standard Mail (A)
 
*                  *                  *                  *                  *                  *
                                                        *
Enhanced Carrier Route Flats--Nonautomation:
 
*                  *                  *                  *                  *                  *
                                                        *
5-digit carrier routes sacks.................                586  STD FLTS CR-RTS
5-digit scheme car. rts. sacks...............                529  STD FLTS CR-RTS SCH
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

M033  Sacks And Trays

1.0  BASIC STANDARDS
* * * * *

1.7  Origin/Entry 3-Digit/Scheme Trays and Sacks

[Amend the first sentence in M033.1.7 to refer to preparation of 5-
digit carrier routes trays and sacks, optional 5-digit scheme carrier 
routes sacks for Periodicals and Standard Mail (A), and 3-digit carrier 
routes trays, as follows:]
    Except for flat-size and irregular parcel-size Periodicals under 
1.8, after all carrier route, 5-digit carrier routes (and where 
permitted, 5-digit scheme carrier routes and 3-digit carrier routes), 
5-digit (and, where permitted, 5-digit scheme), 3-digit (and, where 
permitted, 3-digit scheme) sacks/trays are prepared * * *

1.8  Periodicals Flats and Irregular Parcels Origin/Entry SCF Sacks

[Amend the first sentence in M033.1.8 to refer to preparation of 5-
digit carrier routes sacks and optional 5-digit scheme carrier routes 
sacks for Periodicals, as follows:]
    For flat-size and irregular parcel-size Periodicals, after all 
carrier route, 5-digit carrier routes (and where permitted, 5-digit 
scheme carrier routes), 5-digit, 3-digit, and required SCF sacks are 
prepared * * *
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION
[Amend M041.5.1 to indicate that pallet sortation using package 
reallocation may not always require sorting a mailing to the finest 
level as follows:]

5.1  Presort

    Pallet preparation and pallet sortation are subject to the specific 
standards in

[[Page 16838]]

M045. Pallet sortation is generally intended to presort the palletized 
portion of a mailing to at least the finest extent required for the 
corresponding class of mail and method of preparation. Pallet sortation 
is sequential from the lowest (finest) level to the highest and must be 
completed at each required level before the next optional or required 
level is prepared. Standard preparation terms and presort levels for 
pallets are defined in M011 and M045. For sacks, trays, or machinable 
parcels on pallets, the mailer must prepare all required pallet levels 
before any mixed ADC or mixed BMC pallets are prepared for a mailing or 
job. Packages and bundles prepared under M045 must not be placed on 
mixed ADC or mixed BMC pallets. Packages and bundles that cannot be 
placed on pallets must be prepared in sacks under the standards for the 
rate claimed. The standards for package reallocation (M045.5.0), an 
optional method of pallet preparation, are designed to retain as much 
mail as possible at the SCF level and may result in some packages of 
Periodicals flats and irregular parcels and Standard Mail (A) flats, 
and irregular parcels that are part of a mailing job that is prepared 
in part as palletized flats at automation rates, not being placed on 
the finest level of pallet possible. Mailers must use PAVE-certified 
presort software to prepare mailings using package reallocation 
(package reallocation is optional, but, if performed, must be done for 
the complete mailing job).

5.2  Required Preparation

[Amend M041.5.2 by revising 5.2a to refer to Periodicals and Standard 
Mail (A) 5-digit pallets prepared under the standards for package 
reallocation 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). A pallet must be 
prepared to a required sortation level when there are 500 pounds of 
Periodicals or Standard Mail packages, sacks, or parcels or six layers 
of Periodicals or Standard Mail (A) letter trays. For packages of 
Periodicals flats and irregular parcels and packages of Standard Mail 
(A) flats on pallets prepared under the standards for package 
reallocation (M045.5.0), not all mail for a required 5-digit 
destination is required to be on a 5-digit pallet or optional 5-digit 
scheme pallet. Mixed pallets of sacks, trays, or machinable parcels 
must be labeled to the BMC or ADC (as appropriate) serving the post 
office where mailings are entered into the mailstream. The processing 
and distribution manager of that facility may issue a written 
authorization to the mailer to label mixed BMC or mixed ADC pallets to 
the post office or processing and distribution center serving the post 
office where mailings are entered. These pallets contain all mail 
remaining after required and optional pallets are prepared to finer 
sortation levels under M045, as appropriate.
* * * * *
6.0  COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE 
PIECES
* * * * *
[Amend M041.6.3 and M041.6.4 to indicate that pallet sortation using 
package reallocation may not always require sorting a mailing to the 
finest level, as follows:]

6.3  Periodicals Publications

    To combine more than one Periodicals publication on pallets, the 
mailer must merge and presort copies of all the publications into 
common packages to achieve the finest presort level for the combined 
mailing. To copalletize different Periodicals flat-size publications, 
the mailer must consolidate on pallets all independently sorted 
packages for each publication to achieve the finest presort level for 
the mailing. A combined or copalletized mailing prepared under 
M045.5.0, using package reallocation, may not always result in all 
packages being placed on the finest pallet level possible. Both 
combined and copalletized publications must be supported by the 
documentation required in M045. Preferred Periodicals may be combined 
with Regular Periodicals only as permitted by standard.

6.4  Standard Mail (A)

    To copalletize different Standard Mail (A) flat-size mailings, the 
mailer must consolidate on pallets all independently sorted packages 
from each mailing to achieve the finest presort level for the mailing, 
except that a copalletized mailing prepared under M045.5.0, using 
package reallocation, may not always result in all packages being 
placed on the finest pallet level possible. At the time of mailing, the 
mailer must present computer-generated listings required in M045 that 
include a summary list consolidating the copalletized multiple mailings 
and a list of the contents of each pallet by ZIP Code and presort 
level.
* * * * *

M045  Palletized Mailings

* * * * *
4.0  PALLET PRESORT AND LABELING
[Amend the title of M045.4.1 to indicate that it also refers to trays 
on pallets, as follows:]

4.1  Packages, Bundles, Sacks, or Trays

[Amend M045.4.1 by revising 4.1a and adding new 4.1b to provide an 
optional 5-digit/scheme sort for packages of Periodicals and Standard 
Mail (A) flats; redesignate M045.4.1b through M0454.1e as M045.4.1c 
through M045.4.1f, as follows:]
    Preparation sequence and Line 1 labeling:
    a. 5-digit: required for sacks; required for packages and bundles 
except for packages and bundles prepared under b; optional for trays; 
for Line 1, use 5-digit ZIP Code destination of contents.
    b. 5-digit/scheme: optional for Periodicals and Standard Mail (A) 
packages and bundles; for Line 1 for 5-digit pallets, use 5-digit ZIP 
Code destination of contents; for Line 1 for 5-digit scheme pallets, 
use L001, column B.
* * * * *

4.4  Line 2

[Amend M045.4.4 to require ``SCHEME'' or ``SCH'' to appear on 5-digit 
scheme pallets of Periodicals or Standard Mail (A), as follows:]
    Line 2, class of mail (shown below, as appropriate), processing 
category and mail type (e.g., ``MACH,'' ``LTRS BC''), ``SCHEME'' or 
``SCH'' for 5-digit scheme pallets of Periodicals or Standard Mail (A), 
and any processing code required by the applicable labeling list under 
4.1, 4.2, and 4.3:
* * * * *
[Add new section M045.5.0 to specify preparation requirements for 
package reallocation; and redesignate sections M045.5.0 through 
M045.13.0, as M045.6.0 through M045.14.0, respectively, as follows:]
5.0  PACKAGE REALLOCATION FOR PERIODICALS FLATS AND IRREGULAR PARCELS 
AND STANDARD MAIL (A) FLATS ON PALLETS

5.1  Basic Standards

    Package reallocation is an optional preparation method (if 
performed, package reallocation must be done for the complete mailing 
job); only PAVE-certified presort software may be used to create 
pallets under the standards in 5.2 through 5.4. The software will 
determine if mail for an SCF service area would fall beyond the SCF 
level if all required 5-digit or optional 5-digit/

[[Page 16839]]

scheme pallets and optional 3-digit pallets are prepared. Reallocation 
is performed only when there is mail for the SCF service area that 
would fall beyond the SCF pallet level (e.g., to an ADC or BMC pallet). 
The amount of mail required to bring the mail that would fall beyond 
the SCF level back to an SCF level pallet level is the minimum volume 
that will be reallocated, where possible.

5.2  General Reallocation Rules

    Reallocation rules:
    a. Package preparation is not affected by the reallocation process. 
Reallocate only complete packages and only the minimum number of 
packages necessary to create an SCF pallet meeting the minimum pallet 
weight. Based on the weight of individual pieces within a package and 
packaging parameters, the weight of mail that is reallocated may be 
slightly more than the minimum volume required to create an SCF pallet.
    b. Reallocate packages from the highest available pallet level 
possible. If it is not possible to reallocate some mail from a 3-digit 
pallet first, then attempt to eliminate a 3-digit pallet and reallocate 
all mail from that pallet to create an SCF pallet; if mail cannot be 
reallocated from a 3-digit pallet, then attempt to reallocate some mail 
from a 5-digit or 5-digit scheme pallet.
    c. The reallocation process may result in the elimination of a 3-
digit pallet to create an SCF pallet, but a 5-digit or 5-digit scheme 
pallet (when 5-digit scheme pallets are prepared) may not be eliminated 
in order to create an SCF pallet.
    d. When reallocating mail to create an SCF pallet, reallocate mail 
from only one more finely sorted pallet. This may be accomplished by 
reallocating a portion of a 3-digit pallet, reallocating all mail from 
a 3-digit pallet, or reallocating a portion of a 5-digit or 5-digit 
scheme pallet following the sequence in 5.2b.
    e. Mailers may use any minimum pallet weight(s) permitted by DMM 
standards and may use different minimum weights for different pallet 
levels in conjunction with package reallocation.

5.3  Reallocation of Packages if Optional 3-Digit Pallets Are 
Prepared

    Reallocation rules:
    a. Attempt to identify a 3-digit pallet of adequate weight that can 
support reallocation of one or more packages to bring the mail that has 
fallen through the SCF level back to the SCF level without eliminating 
the pallet. A sufficient volume of mail must remain on the 3-digit 
pallet after reallocation to meet the 3-digit pallet weight minimum 
established by the mailer in compliance with applicable DMM standards. 
If a 3-digit pallet of adequate weight is available, create an SCF 
pallet by combining the reallocated mail from the 3-digit pallet with 
the mail that would fall beyond the SCF pallet level.
    b. If no single 3-digit pallet within the SCF service area contains 
an adequate volume of mail to allow reallocation of a portion of the 
mail on a pallet as described in the previous step, then eliminate one 
3-digit pallet and reallocate all of the mail to create an SCF pallet 
by combining it with the mail that would fall beyond the SCF pallet 
level. The result will be that the software will not prepare one 3-
digit pallet for the SCF service area if it is detrimental to the SCF 
pallet.
    c. If there are no 3-digit pallets, attempt to identify a 5-digit 
or 5-digit scheme pallet of adequate weight to support reallocation of 
one or more packages to bring the mail that would fall beyond the SCF 
pallet level back to the SCF level. A sufficient volume of mail must 
remain on the 5-digit or 5-digit scheme pallet after reallocation to 
meet the pallet weight minimum established by the mailer in compliance 
with applicable DMM standards. If a 5-digit or 5-digit scheme pallet of 
adequate weight is available, create an SCF pallet by combining the 
reallocated packages with the mail that would fall beyond the SCF 
pallet level.
    d. If no single 5-digit or 5-digit scheme pallet within the SCF 
service area contains an adequate volume of mail to allow reallocation 
of a portion of the mail on a pallet as described in c, then no 
packages will be reallocated and an SCF pallet will not be prepared; 
the mail that falls beyond the SCF pallet level must be placed on the 
appropriate level pallet (ADC or BMC) or in the appropriate level sack.

5.4  Reallocation of Packages if Optional 3-Digit Pallets Are Not 
Prepared

    Reallocation rules:
    a. Attempt to identify a 5-digit or 5-digit scheme pallet of 
adequate weight to support reallocation of one or more packages to 
bring the mail that would fall beyond the SCF pallet level back to the 
SCF level. A sufficient volume of mail must remain on the 5-digit or 5-
digit scheme pallet after reallocation to meet the pallet weight 
minimum established by the mailer in compliance with applicable DMM 
standards. If a 5-digit or 5-digit scheme pallet of adequate weight is 
available, create an SCF pallet by combining the reallocated packages 
with the mail that would fall beyond the SCF pallet level.
    b. If no single 5-digit or 5-digit scheme pallet within the SCF 
service area contains an adequate volume of mail to allow reallocation 
of a portion of the mail on a pallet as described in a, then no 
packages will be reallocated and an SCF pallet will not be prepared; 
the mail that falls beyond the SCF pallet level must be placed on the 
appropriate level pallet (ADC or BMC) or in the appropriate level sack.

5.5  Documentation

    Mailings must be supported by documentation produced by PAVE-
certified software meeting the standards in P012.
6.0  PALLETS OF PACKAGES, BUNDLES, AND TRAYS OF LETTER-SIZE MAIL
[Amend redesignated 6.1 and 6.2 by revising the second section of each 
section to indicate that automation rate and nonautomation rate mail 
must be placed on separate 5-digit scheme pallets, as follows:]
    6.1  * * * Automation rate and nonautomation rate pieces must be 
placed on separate 5-digit and 5-digit scheme pallets. * * *
    6.2  * * * Automation rate and nonautomation rate pieces must be 
placed on separate 5-digit and 5-digit scheme pallets, except that 
upgradable pieces prepared under M610 may be placed on 5-digit pallets 
with automation rate pieces. * * *
* * * * *

M200  Periodicals (Nonautomation)

1.0  BASIC STANDARDS
* * * * *

1.5  Low Volume Packages and Sacks

[Amend M200.1.5 by revising reference to ``3.1a through 3.1e'' to read 
``3.1a through 3.1f'', as follows:]
    As a general exception to 2.4b through 2.4d and 3.1a through 3.1f, 
* * *
* * * * *
3.0  SACK PREPARATION (FLAT-SIZE PIECES AND IRREGULAR PARCELS)

3.1  Sack Preparation

[Amend M200.3.1 by revising 3.1b and adding new 3.1c to provide an 
optional 5-digit/scheme carrier routes sort for flats and irregular 
parcels; redesignate M200.3.1c through M200.3.1g as M200.3.1d through 
M200.3.1h, as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *

[[Page 16840]]

    b. 5-digit carrier routes (carrier routes packages only): required 
for rate eligibility (no minimum) unless sacks are prepared under c; 
for Line 1, use 5-digit ZIP Code destination of packages, preceded for 
military mail by the prefixes under M031.
    c. 5-digit/scheme carrier routes (carrier route packages only): 
required at 24 pieces, optional with one six-piece package minimum 
except under 1.5; for Line 1 for 5-digit carrier routes sacks, use 5-
digit ZIP Code destination of packages, preceded for military mail by 
the prefixes under M031; for Line 1 for 5-digit scheme carrier routes 
sacks, use L001, column B.
* * * * *

3.2  Sack Line 2

[Amend M200.3.2 by adding new 3.2e for 5-digit scheme carrier routes 
sacks; and redesignate M200.3.2e through M200.3.2h as M200.3.2f through 
M200.3.2i, respectively, as follows:]
* * * * *
    e. 5-digit scheme car. rts.: ``CR-RTS SCH''
* * * * *

M600  Standard Mail (Nonautomation)

* * * * *

M620  Enhanced Carrier Route Standard Mail

* * * * *
4.0  SACK PREPARATION--FLAT-SIZE PIECES AND IRREGULAR PARCELS
* * * * *

4.2  Sack Preparation

[Amend M620.4.2 by revising 4.2b and adding new 4.2c, as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. 5-digit carrier routes: required (no minimum); for irregular 
parcels; for Line 1, use 5-digit ZIP Code destination of packages, 
preceded for military mail by the prefixes under M031.
    c. 5-digit/scheme carrier routes: required (no minimum) for flats; 
for Line 1, for 5-digit sacks, use 5-digit ZIP Code destination of 
packages, preceded for military mail by the prefixes under M031; for 
Line 1 for 5-digit scheme sacks, use L001, column B.

4.3  Sack Line 2

[Amend M620.4.3 by adding new 4.3e for 5-digit scheme carrier routes 
sacks, as follows:]
* * * * *
    e. 5-digit scheme car. rts.: ``CR-RTS SCH''
* * * * *

P  Postage And Payment Methods

P000  Basic Information

* * * * *

P012  Documentation

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

2.2  Format and Content

[Amend P012.2.2d by revising 2.2d(4) to add standards for identifying 
SCF pallets created as a result of package reallocation by adding the 
following to the end of the section:]
* * * * *
    d. For packages on pallets, the body of the listing reporting these 
required elements:
* * * * *
    (4) * * * Document SCF pallets created as a result of package 
reallocation under M045.5.0 on the USPS Qualification Report by 
designating the protected SCF pallet with an identifier of ``PSCF.'' 
This identifier is only required to appear on the USPS Qualification 
Report; it is not required to appear on pallet labels or on any other 
mailing documentation.
* * * * *

2.4  Sortation Level

[Amend 2.4 by adding new indicators ``CR5S'' to identify 5-digit 
carrier routes scheme sacks, ``5DGS'' to identify 5-digit scheme 
pallets, and ``PSCF'' to identify SCF pallets created as a result of 
package reallocation under M045.5.0, 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
------------------------------------------------------------------------
 
                          *    *    *    *    *
5-Digit Carrier Routes.....................  CR5
5-Digit Scheme Carrier Routes (Periodicals   CR5S
 flats, Standard Mail (A) flats).
5-Digit Scheme (pallets, Periodicals flats   5DGS
 and irregular parcels, Standard Mail (A)
 flats).
 
                          *    *    *    *    *
SCF (pallets)..............................  N/A
SCF (pallets created from package            PSCF
 reallocation).
 
                          *    *    *    *    *
------------------------------------------------------------------------

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-8400 Filed 4-6-99; 8:45 am]
BILLING CODE 7710-12-P