[Federal Register Volume 64, Number 180 (Friday, September 17, 1999)]
[Rules and Regulations]
[Pages 50449-50453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24263]


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POSTAL SERVICE

39 CFR Part 111


Bulk Parcel Return Service

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the Decision of 
the Governors of the United States Postal Service on the Recommended 
Decision of the Postal Rate Commission on the Minor Classification 
Change for Bulk Parcel Return Service, Docket No. MC99-4. The change 
allows properly endorsed Standard Mail (A) machinable parcels that have 
been opened and resealed by the recipient to be returned to the 
original mailer and allows mailers the option of providing the parcel 
recipients with the label for returns.

EFFECTIVE DATE: October 3, 1999.

FOR FURTHER INFORMATION CONTACT: Paul Lettmann, (202) 268-6261, or 
Scott L. Reiter, (202) 268-2999.

SUPPLEMENTARY INFORMATION: The changes in Domestic Mail Manual 
standards allow properly endorsed Standard Mail (A) machinable parcels 
that have been opened and resealed by the recipient to be returned to 
the original mailer without payment of return postage as part of the 
bulk parcel return service in certain circumstances. They also allow 
mailers to elect to furnish a label that can be used by recipients when 
returning a parcel.
    These changes will provide better service to mailers and their 
customers and will also improve postal efficiency. Parcels that have 
been opened, resealed, and replaced in the mail normally require 
payment of additional postage. However, there are two situations in 
which the Postal Service believes the requirement should be superseded 
by the more efficient and cost-effective practice of treating the 
parcel as part of the BPRS mailstream.
    The first situation occurs when the parcel has already been 
returned to the mailstream and it is impractical or inefficient to 
return it to the recipient for payment of postage. This could occur 
either because discovery that the parcel had been opened is made only 
after the parcel has reached a point in the mailstream that is at or 
near the office serving the original mailer or because such discovery 
is simply not made. This situation might also occur because of the 
inefficiencies and costs that would be encountered by having a carrier 
return the parcel to the recipient.
    The second situation in which a recipient does not have to pay for 
return postage occurs when a mailer distributes a return label prepared 
to Postal Service specifications that the parcel recipient later uses 
to indicate that the parcel is being returned as BPRS at the expense of 
the original mailer. The use of a label is optional

[[Page 50450]]

and is a new feature of BPRS that mailers requested.

Background

    The Postal Service currently offers bulk parcel return service 
(BPRS) to mailers who have a large volume of returned Standard Mail (A) 
machinable parcels. One of the new features will allow BPRS mailers to 
have properly endorsed parcels that are opened, resealed, and 
redeposited in the mail by addressees to be returned to designated 
postal facilities. BPRS currently offers a mailer the option of picking 
up all returned parcels from a designated postal facility at a 
predetermined frequency specified by the Postal Service or having them 
delivered by the Postal Service in a manner and frequency specified by 
the Postal Service. For this service a mailer pays an annual permit fee 
and a per piece fee for each returned parcel.
    Some BPRS mailers requested that the Postal Service allow 
addressees who opened their parcels to have some method of returning 
these parcels and to allow the original mailer to pay the return 
postage. The Postal Service previously offered BPRS for machinable 
parcels only when they were undeliverable-as-addressed (UAA). If a 
recipient received a BPRS-endorsed parcel, opened it, and then decided 
to return it, the recipient was to bring it to a post office and pay 
single-piece postage for the return. Domestic Mail Manual standards 
previously required that Standard (A) parcels that had been delivered 
and subsequently opened, resealed, and reentered into the mail by the 
recipient be returned to the recipient for payment of postage. This 
practice resulted in inconvenience for some postal customers as well as 
mailers, and inefficiency for the Postal Service.

Label Option

    BPRS mailers now have the option to provide customers with a return 
label prepared at the mailer's expense and in accordance with Postal 
Service specifications. These specifications include a barcode for the 
address of the postal facility to which the parcel is to be returned. 
The label authorizes recipients to return opened, machinable parcels at 
the expense of the mailer. It will be required that instructions be 
provided to recipients with the label. Once returned to the mailstream, 
opened and resealed parcels bearing a label will be handled in the same 
manner as other BPRS parcels. There will be no additional fee since 
there are no additional costs to the Postal Service associated with the 
use of a label. Mailers may choose to distribute their return labels by 
enclosing them with parcels or by other means, including First-Class 
Mail or making them available for customer downloading from an Internet 
site.
    It is anticipated that the revisions will help resolve several 
problems that have been experienced by customers, mailers, and the 
Postal Service. They will help to eliminate situations where original 
mailers experience delays or other difficulties in having their 
merchandise returned by their customers. Mailers may be denied customer 
payments and information of value to their business when returned 
parcels are not received in a timely manner. By using a return label, 
mailers will be able to inform any customer who is not satisfied with 
the merchandise they receive that it can be sent back at no cost to 
them. The label feature thus gives mailers somewhat more influence over 
how their mailings are treated by recipients and helps to reduce or 
eliminate a source of customer dissatisfaction.
    Another benefit is that mailers will have an effective way to 
retrieve merchandise that their customers reseal and redeposit after 
opening. A key factor in the Postal Service decision to make the use of 
return labels optional was the feeling on the part of some mailers that 
the use of a label tends to encourage customers to return merchandise. 
Instead of using a label, these mailers can choose to identify BPRS 
parcels and make the Postal Service aware that they will pay the 
postage for returns by properly using one of the prescribed BPRS 
endorsements.
    The new service features also benefit the Postal Service by 
minimizing both decision and transaction costs associated with former 
procedures for dealing with opened and resealed Standard Mail (A) 
machinable parcels found in the mailstream. Postal employees who 
discover such parcels without postage will no longer be required to 
make a decision about how to handle them. As long as the parcels bear a 
proper BPRS endorsement, they can be handled like BPRS-endorsed parcels 
that are undeliverable-as-addressed. This will help reduce costs that 
are incurred by the Postal Service if such parcels are sent to a mail 
recovery center.
    Mail processing costs can also be minimized because barcodes are 
required on all return labels. The barcodes will allow the Postal 
Service to process the parcels on bulk mail center parcel sorting 
machines.
    There is yet another advantage when a label is used. Parcels that 
display a return label will be easier to identify and process as part 
of the BPRS mailstream. Printing on the labels will make them easier to 
read than if the parcels have a hand-written or stamped endorsement of 
``Return to Sender.'' An easy-to-read label makes it less likely that a 
parcel will become ``loop'' mail in processing and delivery channels 
because of an unclear or incomplete return address.
    In these ways the label option may help to reduce postal costs for 
handling returned parcels. There is no additional fee for use of the 
label since the Postal Service fully recovers the costs of processing 
opened, resealed parcels that are redeposited into the mailstream, 
including postage due accounting through the BPRS fee. Current BPRS 
permit holders who want to use the label option need only to submit 
their proposed labels to the post office for approval. There is no need 
for them to apply for a new permit.
    Because of the purpose and limited scope of these changes to BPRS, 
the Postal Service finds no need to solicit comment on them or to delay 
their implementation.

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. Secs. 101, 401, 403, 404, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Amend the Domestic Mail Manual as follows:

S  SPECIAL SERVICES

* * * * *

S900  Special Postal Services

* * * * *

S920  Convenience

* * * * *

S924  Bulk Parcel Return Service

1.0  BASIC INFORMATION
[Amend 1.1 to allow the remailing of opened parcels to read as 
follows:]

1.1  Description

    Bulk parcel return service (BPRS) allows mailers of large 
quantities of Standard Mail (A) machinable parcels that are either 
undeliverable-as-addressed or opened and remailed by

[[Page 50451]]

addressees to be returned to designated postal facilities. The mailer 
has the option of picking up all returned parcels from a designated 
postal facility at a predetermined frequency specified by the Postal 
Service or having them delivered by the Postal Service in a manner and 
frequency specified by the Postal Service. For this service a mailer 
pays an annual permit fee and a per piece fee for each parcel returned.

[Revise 1.2 to read as follows:]

1.2  Availability

    A mailer may be authorized to use BPRS when the following 
conditions apply:
    a. All returned parcels are initially prepared as Regular or 
Nonprofit Standard Mail (A) and are machinable parcels as defined in 
C050.
    b. At least 10,000 Standard Mail (A) machinable parcels will be 
returned to a designated postal facility during a 12-month period.
    c. Parcels are returned to the mailer either because they are 
undeliverable-as-addressed or because they have been opened, resealed, 
and redeposited in the mail by the recipient and it is impractical or 
inefficient for the Postal Service to return them.
    d. Parcels bear one of the following BPRS endorsements

(F010):
    ``Return Service Requested--BPRS''

    ``Address Service Requested--BPRS''

    e. Parcels have a return address that is in the delivery area of 
the post office that issued the BPRS permit.
    f. The postal facility designated for returned parcels is located 
in the United States, its territories or possessions, or is a U.S. 
military post office overseas (APO or FPO).
    g. The mailer has a valid postage due advance deposit account and 
pays the annual BPRS permit fee.
    h. BPRS parcels may be combined with the shipper paid forwarding 
service (F030).
    i. Standard Mail (A) parcels that qualify for a single-piece 
Standard Mail (B) rate under the applicable standards and that contain 
the name of the Standard Mail (B) rate in the mailer's ancillary 
service endorsement are not eligible for BPRS.

[Revise 1.3 to read as follows:]

1.3  Optional Label

    An authorized BPRS permit holder has the option to use a label to 
identify BPRS parcels for return to a designated postal facility. The 
label is prepared at the mailer's expense and must meet all format 
requirements described in 4.0 and 5.0 and specifications in C820 for a 
postal routing barcode symbology used to produce a correct, readable 
barcode for the return address. Each label must be accompanied by 
complete instructions for its use.

[Remove current 1.4]
2.0  PERMITS
[Revise section 2.1 to read as follows:]

2.1  Application Procedures

    To obtain a BPRS permit, a mailer must send a written request to 
the postmaster at each post office where parcels are to be returned. 
The request must include the following:
    a. Payment for the annual BPRS permit fee.
    b. Information pertinent to each requested delivery point that 
documents either the receipt of at least 10,000 machinable parcels 
originally mailed at Standard Mail (A) rates during the past 12 months, 
or that there are reasonable grounds to expect at least 10,000 
machinable parcels originally mailed at Standard Mail (A) rates will be 
returned during the next 12-month period.
    c. A description of the returned parcels (e.g., piece size and 
packaging).
    d. A statement of the desired frequency and location of the parcel 
pickup or delivery point.
    e. Sample documentation that will be used to substantiate the 
number of parcels returned daily to each location.
    f. If labels will be furnished for returning opened parcels, sample 
labels prepared in accordance with 4.0 and 5.0 along with instructions 
for their use.
    g. A written statement agreeing to pay the per piece fee for each 
returned parcel from a centralized advance deposit account.

[Redesignate 2.2 as 2.4 and add new 2.2 as follows:]

2.2  Authorization

    Upon approval of a mailer's request, the post office issues an 
authorization letter and provides a postage due service agreement with 
a BPRS permit number. The permit number is used for account 
administration only and is not for use on mail.

[Revise 2.3 to read as follows:]

2.3  Postage Due Service Agreement

    A BPRS mailer will be required to sign a postage due service 
agreement with each post office that issues a permit for the return of 
BPRS parcels.

[Amend redesignated 2.4 to clarify permit renewal as follows:]

2.4  Permit Renewal

    A post office provides BPRS permit holders with annual renewal 
notices advising that their permits are due to expire. A notice must be 
returned to the issuing post office with the fee payment or 
authorization for the postmaster to deduct the fee from the advance 
deposit account by the permit expiration date. Written authorization is 
not necessary for renewal of a permit if there is no change to the 
authorization on file at the post office where the parcels are 
returned. If a permit holder does not renew a BPRS permit after having 
been given notice, the USPS will endorse the mail ``Bulk Parcel Return 
Service Canceled'' and will charge postage due at the single-piece 
First-Class Mail or Priority Mail rate as appropriate for the weight of 
the piece. If the single-piece First-Class Mail or Priority Mail rate 
is not paid, the mail is forwarded to the nearest mail recovery center 
for final disposition.

[Redesignate current 2.4 as 2.5 and revise to read as follows:]

2.5  Permit Cancellation

    A BPRS permit may be canceled by the USPS for any of the following 
reasons:
    a. Failure to meet the minimum volume requirement of 10,000 parcels 
returned during a 12-month period to each postal facility;
    b. Failure of the mailer to pay the required postage and fees for 
returned parcels;
    c. Insufficient funds in an advance deposit account to cover 
postage and fees that are due for returned parcels;
    d. Failure to fulfill the terms and conditions of the BPRS permit 
authorization; or
    e. Failure to conform return labels to the specifications in 
sections 4.0 and 5.0.

[Redesignate current 2.5 as 2.6 and revise to read as follows:]

2.6  Reapplying After Cancellation

    A mailer must do the following to receive a new BPRS permit at the 
same post office where a permit was canceled earlier:
    a. Submit a letter to that office requesting a permit and new 
agreement.
    b. Pay a new permit fee.
    c. Provide evidence showing that the reasons for cancellation of 
the previous permit no longer exist.
    d. Maintain adequate funds in an advance deposit account to cover 
the number of returns expected over at least a 2-week period.
3.0  POSTAGE AND FEES

3.1  Permit Fee

[Amend 3.1 for clarification to read as follows:]


[[Page 50452]]


    The permit fee is charged once for each 12-month period and the fee 
for a permit renewal is due on the anniversary date of the original 
permit issuance. The fee may be paid in advance only for the next year 
and only during the last 30 days of the current service period under 
the existing permit. The fee charged is that which is in effect on the 
date of payment.

3.2  Payment

[Revise 3.2 to read as follows:]

    The requirements for payment of the BPRS annual permit fee and per 
piece fees are as follows:
    a. The permit holder must pay BPRS per piece fees through an 
advance deposit account.
    b. Parcels will be turned over to the mailer only when sufficient 
funds are in the account to pay all applicable fees.
    c. The permit holder may establish a unique advance deposit account 
or use an existing one to pay postage and fees under BPRS.

[Add new 4.0 to specify label requirements to read as follows:]
4.0  LABEL REQUIREMENTS

4.1  Production Methods

    Any photographic, mechanical, or electronic process, or any 
combination of such processes other than typewriting or handwriting may 
be used to prepare the BPRS label. The background may be any light 
color that allows the address, postmark, and other endorsements to be 
easily read. Brilliant colors may not be used for the background. If a 
label is prepared with adhesive on its reverse side, the adhesive must 
be capable of securely bonding the label to the parcel.

4.2  Label Instructions

    Written instructions must be provided with the label that, at a 
minimum, advise the user to do the following:
    a. Obliterate all other delivery addresses and barcodes on the 
outside of the parcel.
    b. Print a complete return address in the location provided in the 
upper left corner of the label.
    c. Place the label with the delivery address and barcode on the 
side of the mailpiece with the largest surface area. If tape or similar 
material is used, it must not cover any part of the label where the 
mailer's return address and postal routing barcode are located. The 
barcode should be at least 1 inch from the edge of the parcel. If the 
shape of the parcel requires specific orientation for stability, the 
label must be placed on the top surface.
    d. Take the parcel to a post office, drop it in a collection box, 
or give it to a postal carrier.

4.3  Distribution

    BPRS return labels may be distributed to customers as an enclosure 
with merchandise, as a separate item, as a facsimile transmission 
(fax), or as an electronic transmission for customer downloading and 
printing. Regardless of distribution method, all standards in 4.2 and 
5.0 must be met. An electronic file must include instructions that 
explain how to affix the label securely to the parcel as required in 
4.2.

[Add new 5.0 to read as follows:]
5.0  FORMAT

5.1  General

    The BPRS label contents and format must meet all applicable 
standards before the label may be distributed for use. Format 
requirements are shown in Exhibit 5.0.

5.2  Postage Guarantee

    The endorsement ``NO POSTAGE NECESSARY IF MAILED IN THE UNITED 
STATES'' must be printed in the upper right corner of the face of the 
piece. The endorsement must not extend more than 1\3/4\ inches (1.75 
inches) from the right edge of the label.

5.3  Horizontal Bars

    To facilitate recognition of BPRS parcels, a series of horizontal 
bars parallel to the label length must be printed directly below the 
endorsement ``NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES.''
    a. The bars must be uniform in length, at least 1 inch long and \1/
16\ inch (0.0625 inch) to \3/16\ inch (0.1875 inch) thick, and evenly 
spaced.
    b. There must be at least a \1/2\ inch (0.500 inch) clearance 
between the right edge of the ZIP Code in the delivery address and the 
left edge of the horizontal bars.
    c. The bottom bar in the series must be above (not on or below) the 
top of the delivery address line (the next-to-last line in the address, 
just above the line with the city, state, and ZIP Code).
    d. Do not use a facing identification mark (FIM) on this label.

5.4  Class Endorsement

    The ``STANDARD MAIL A'' class endorsement must be at least \1/4\-
inch (.25 inch) high and shown in capital letters to the left of the 
postage guarantee endorsement.

5.5  BULK PARCEL RETURN SERVICE Legend

    The ``BULK PARCEL RETURN SERVICE'' legend must be placed above the 
return delivery address on all BPRS parcels. The legend means that the 
BPRS permit holder guarantees payment of postage and fees on all 
returned Standard Mail (A) parcels. The following information must be 
enclosed in a rectangle:
    a. Line 1: Show the words ``BULK PARCEL RETURN SERVICE'' in capital 
letters at least \3/16\ inch (0.1875 inch) high, enclosed in a 
rectangle.
    b. Line 2: The name of the BPRS permit holder must also be printed 
in capital letters in the rectangle directly below the words ``BULK 
PARCEL RETURN SERVICE.''
    c. The permit holder's city, state, and ZIP Code must appear in 
capital letters and must be located on the same line as the company 
name.
    d. The post office box number and/or street address must appear in 
capital letters on the line beneath this information.

5.6  Delivery Address

    A complete delivery address (city, state, ZIP Code) specified by 
the post office that issued the BPRS permit and to which parcels are 
returned must be printed in capital letters at least \3/16\ inch 
(0.1875) high below the ``BULK PARCEL RETURN SERVICE'' rectangle and at 
least 1 inch from the left edge of the label. There must be at least a 
\1/2\-inch (0.50 inch) clearance between the ZIP Code and the 
horizontal bars.

5.7  Customer's Return Address

    The complete return address (street, city, state, ZIP Code) of the 
customer mailing the article back to the permit holder must be shown in 
the upper left corner of the label. Space must be provided for the 
customer's return address if it is not preprinted by the permit holder.

5.8  Optional Information

    At the option of the permit holder, a single line above the top 
line of the customer return address may be used for customer account or 
other information.

5.9  Postal Routing Barcode

    Every BPRS label must include a properly prepared barcode that 
represents the correct ZIP Code information for the delivery address of 
the returned parcel plus the appropriate verifier character suffix or 
application identifier prefix characters appropriate for the barcode 
symbology as described in C850 for machinable parcels. In addition to 
the barcode requirements in C850, the following requirements must be 
met in preparing BPRS labels:
    a. Barcode Location: The barcode must be placed on the label 
immediately adjacent to the address and the label must be located on 
the parcel so the

[[Page 50453]]

barcode is at least 1 inch from the parcel edge.
    b. Barcode Clear Zone: No printing may appear in the area \1/8\ 
inch (0.125 inch) above and below the barcode regardless of location on 
the label. A minimum clear zone equal to 10 times the average measured 
narrow element (bars or space) width must be maintained to the left and 
right of the barcode.
    c. Human-Readable Barcode Information. The human-readable 
equivalent of the ZIP Code or ZIP+4 code encoded in the barcode as 
referenced in C850 may be omitted.

Exhibit 5.0 Bulk Parcel Return Service Label (not to scale)

BILLING CODE 7710-12-P
[GRAPHIC] [TIFF OMITTED] TR17SE99.005


Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-24263 Filed 9-16-99; 8:45 am]
BILLING CODE 7710-12-P