[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Rules and Regulations]
[Pages 38831-38832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18510]


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POSTAL SERVICE

39 CFR Part 111


Domestic Mail Manual Changes To Implement Nonprofit and Classroom 
Periodicals Classification Changes and Notice of Refund Procedures

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This document sets forth the changes to the Domestic Mail 
Manual to implement the July 12, 1999, Decision of the Governors of the 
United States Postal Service on the Recommended Decision of the Postal 
Rate Commission (PRC) on Periodicals Classification Changes. In 
addition, it contains procedures for obtaining refunds for the 
difference between postage paid on certain mailings at Periodicals 
Nonprofit or Classroom rates and postage computed at Periodicals 
Regular rates on those same mailings.

EFFECTIVE DATE: August 1, 1999.

FOR FURTHER INFORMATION CONTACT: Jerry Lease, 202-268-5188.

SUPPLEMENTARY INFORMATION: On April 9, 1999, the Postal Service filed 
with the PRC a request for a recommended decision on Periodicals 
classification changes designed to provide a remedy to a rate anomaly 
resulting from the last omnibus rate case, Docket No. R97-1. The PRC 
designated the filing as Docket No. MC99-3. On April 23, 1999, the PRC 
published a notice of the filing, with a description of the Postal 
Service's proposal, in the Federal Register (64 FR 13613).
    On June 23, 1999, the PRC issued to the Governors of the Postal 
Service its recommended decision on the Postal Service's request. The 
PRC recommended the changes proposed by the Postal Service. On July 12, 
1999, the Governors of the United States Postal Service voted to 
approve the PRC's recommendations, and the Board of Governors set an 
effective date of August 1, 1999.
    This final rule contains the Domestic Mail Manual (DMM) standards 
adopted by the Postal Service to implement the Governors' decision. The 
revised DMM standards take effect on August 1, 1999.
    Because of the unusual circumstances of this anomaly, the Postal 
Service has also decided to make refunds available for the excess of 
postage paid using Nonprofit or Classroom rate schedules over postage 
computed using the Regular rate schedule. These circumstances include 
the following. The anomaly was an unintended byproduct of the highly 
complex Periodicals rate design process,

[[Page 38832]]

resulting in higher postage for Preferred rate publications than 
Regular rate publications for certain mail with the same 
characteristics. Moreover, both the Regular and Preferred rates were 
available to the publications affected by the anomaly at the time of 
mailing; and mailers would have qualified for the lower Regular rates 
if they had surrendered their Nonprofit or Classroom authorizations.
    For mailings made prior to August 1, a publisher of a Nonprofit or 
Classroom Periodicals publication may request a refund for the 
difference between postage paid at Nonprofit or Classroom rates and 
postage computed at Regular rates, if the Regular postage is lower. On 
April 26, 1999, the Postal Service published a notice in the Federal 
Register (see 64 FR 20340-20341) of procedures for tracking differences 
in postage between Regular rates and Nonprofit or Classroom rates, for 
the purpose of making refunds for mailings made starting April 9, 1999. 
The Postal Service has decided that appropriate refunds may be made 
back to January 10, 1999.
    An application for a refund will consist of a written statement 
that the mailer is currently authorized to use either Classroom or 
Nonprofit Periodicals rates and wishes to retain that authorization, 
but also wishes to be considered under these procedures for a refund to 
be calculated with reference to Regular rate postage statements to be 
submitted with the refund application and Preferred rate postage 
statements on file at the post office. Mailers must use the 
instructions published in the April 26, 1999, Federal Register notice. 
Some publishers may have already submitted refund requests for mailings 
made between April 9, 1999, and August 1, 1999. Refund requests must be 
submitted according to published instructions and received no later 
than September 15, 1999. No refunds will be given for mailings entered 
on or after August 1, 1999, regardless of whether a mailer could have 
claimed a lower postage rate.
    Under the new rules, the mailer must choose either Regular or 
Preferred rates for each issue of a publication and complete the 
applicable postage statement, except that a supplemental mailing at 
least 10 calendar days after other mailings for the issue can be 
treated separately. All postage statements for a particular issue 
should be provided with an application for a refund, but a supplemental 
mailing at least 10 calendar days after other mailings does not need to 
be included in calculating refunds.

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, 3626, 5001.

    2. Revise the following sections of the Domestic Mail Manual as 
follows:
E Eligibility
    E200 Periodicals
* * * * *
    E270 Preferred Periodicals
* * * * *

2.0 NONPROFIT RATE--BASIC INFORMATION:

* * * * *
    [Add new 2.4 as follows:]
    2.4 Rate Anomaly
    When the Nonprofit postage computed for a single issue is higher 
than the Regular postage computed for the same issue, that issue is 
eligible for postage at Regular rates. Mailers cannot use different 
rate schedules for the same issue, except for a supplemental mailing 
for a particular issue entered at least 10 calendar days after other 
mailings for that issue. Publications claimed at Regular rates under 
this section with an advertising percentage of 10% or less are 
considered 100% nonadvertising for Regular rate purposes. Those 
publications may use ``0'' as the ``advertising percentage'' when 
computing the nonadvertising adjustment to be applied to outside-county 
piece rate charges.
* * * * *

5.0 CLASSROOM RATES

* * * * *
    [Add new 5.5 as follows:]
    5.5 Rate Anomaly
    When the Classroom postage computed for a single issue is higher 
than the Regular postage computed for the same issue, that issue is 
eligible for postage at Regular rates. Mailers cannot use different 
rate schedules for the same issue, except for a supplemental mailing 
for a particular issue entered at least 10 calendar days after other 
mailings for that issue. Publications claimed at Regular rates under 
this section with an advertising percentage of 10% or less are 
considered 100% nonadvertising for Regular rate purposes. Those 
publications may use ``0'' as the ``advertising percentage'' when 
computing the nonadvertising adjustment to be applied to outside 
county-piece rate charges.
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-18510 Filed 7-19-99; 8:45 am]
BILLING CODE 7710-12-P