[Federal Register Volume 64, Number 206 (Tuesday, October 26, 1999)]
[Rules and Regulations]
[Pages 57571-57572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27906]


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POSTAL SERVICE

39 CFR Part 111


Mailing Online Market Test: Changes in Domestic Classifications 
and Fees--Final Rule

AGENCY: Postal Service.

ACTION: Final rule; market test termination.

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SUMMARY: This serves notice that the United States Postal Service is 
terminating the Mailing Online market test on October 29, 1999. The 
Postal Service originally intended that the test, which began on 
October 30, 1998, would end at a time tied to action on a Request for a 
Mailing Online experiment. However, such Request has been delayed. 
Postal management has made the operational decision to end the market 
test, in accordance with the Postal Rate Commission's Rules of Practice 
which specify that market tests ordinarily last only one year. This 
rule makes conforming changes to the Domestic Mail Manual.

EFFECTIVE DATE: October 29, 1999.

FOR FURTHER INFORMATION CONTACT: Paul Lettmann, (202) 268-6261, or 
Kenneth N. Hollies, (202) 268-3083.

SUPPLEMENTARY INFORMATION: On July 15, 1998, pursuant to its authority 
under 39 U.S.C. section 3621, et seq., the Postal Service filed with 
the Postal Rate Commission (PRC) a Request for a Recommended Decision 
on a Market Test Classification and Fee Schedule and a Recommended 
Decision on an Experimental Classification and Fee Schedule for Mailing 
Online Service. The PRC designated the filing as Docket No. MC98-1 and 
published a notice of the filing, with a description of the Postal 
Service's proposals, in the Federal Register on July 23, 1998 (63 FR 
39600).
    The Postal Service's Request to the PRC proposed that the Postal 
Service be permitted to establish new classifications and fees for 
Mailing Online, first as a market test and later as an experiment. The 
market test was to permit assessment of the features and viability of 
the new service while providing input for PRC and Postal Service 
consideration of the experiment and perhaps a permanent form of Mailing 
Online. The market test was to be a limited one involving up to 5,000 
customers, starting in Tampa, Florida and the northeastern United 
States.
    On October 7, 1998, the Commission issued its favorable Opinion and 
Recommended Decision on the market test. The Postal Service Governors 
voted on October 16, 1998, to accept the Commission's recommendation. 
Operation of the market test subsequently commenced on October 30, 
1998.
    On May 3, 1999, the Board of Governors, in Resolution No. 99-5, 
directed the withdrawal of the request for an experiment in 
consideration of major changes that had occurred in the structure of 
the Postal Service's presence on the Internet. These changes rendered 
inaccurate the factual foundation underlying the earlier request for a 
Mailing Online experiment.
    Accordingly, the market test is being terminated at the end of one 
year based on operational considerations. This decision also accords 
with the PRC's Rules of Practice, 39 CFR 3001.162, which specify that 
market tests ordinarily last only up to one year. The Postal Service is 
now providing notice that operation of the Mailing Online market test 
will cease at approximately 1:59 p.m. EST on Friday, October 29, 1999.

Background

    Mailing Online is a service that allows postal customers with 
access to a personal computer and the Internet to transmit electronic 
documents to a postal Web site for subsequent batching and transmission 
to a contract printer, who creates and presents the physical mailpieces 
for entry into the mailstream. Payment for postage and mailpiece 
preparation is made Online via credit card.
    The Postal Service remains committed to Mailing Online and has not 
abandoned the project despite termination of the market test. 
Development of the single-channel USPS.com Internet presence continues 
and activities related to Mailing Online are being closely coordinated, 
although they are both under development and still being tested. Postal 
management hopes to ask the Governors to authorize the filing of a new 
request for a Mailing Online experiment, based upon the USPS.com 
architecture, in the near future.
    Because of the limited scope of the market test, the Postal Service 
earlier did not solicit comment on its implementation. Similarly, the 
Postal Service finds no need to solicit comment on its termination.

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. Amend the Domestic Mail Manual as follows:

E  Eligibility

* * * * *

E110  Basic Standards

1.0  CLASSIFICATION AND DESCRIPTION
* * * * *

1.3  Matter Closed Against Postal Inspection

[Revise 1.3 by removing reference to documents created and mailed by 
means of Mailing Online to read as follows:]

    Matter closed against postal inspection must be mailed as First-
Class Mail or Express Mail. Electronic documents created for possible

[[Page 57572]]

transmission as First-Class Mail are closed against inspection. Hard 
copy versions of electronic documents, while being prepared for entry 
as First-Class Mail, also are closed against postal inspection. The 
USPS may open mail other than First-Class Mail or Express Mail to 
determine whether the proper rate of postage is paid. Material wrapped 
or packaged so that it cannot be examined easily or cannot be examined 
without destruction or serious damage is closed against postal 
inspection and is charged the appropriate First-Class Mail or Express 
Mail rate.
* * * * *
4.0  FEES

4.1  Presort Mailing

[Revise 4.1 to remove references to Mailing Online mailers to read as 
follows:]

    A First-Class Mail presort mailing fee must be paid once each 12-
month period at each office of mailing by any person or organization 
entering mailings at automation or Presorted First-Class Mail rates. 
Payment of one fee allows a mailer to enter mail at all those rates. 
Persons or organizations paying this fee may enter clients' mail as 
well as their own mail. The fee may be paid in advance only for the 
next year and only during the last 30 days of the current service 
period. The fee charged is that which is in effect on the date of 
payment.
* * * * *
E140  Automation Rates
1.0  BASIC STANDARDS
[Revise 1.1b by removing reference to Mailing Online in G093 to read as 
follows:]

1.1  All Pieces

    All pieces in a First-Class Mail automation rate mailing must:
* * * * *
    b. Be part of a single mailing of at least 500 pieces of automation 
rate First-Class Mail, subject to 1.2.
* * * * *

E611  All Standard Mail

1.0  BASIC INFORMATION
* * * * *

1.2  Postal Inspection

[Revise 1.2 by removing reference to documents created in electronic 
form by means of Mailing Online to read as follows:]

    Standard Mail is not sealed against postal inspection except for 
electronic documents retained by the Postal Service, which are sealed 
against postal inspection. Regardless of physical closure, the mailing 
of articles at Standard Mail rates constitutes consent by the mailer to 
postal inspection of the contents.
* * * * *

E612  Additional Standards for Standard Mail (A)

* * * * *
4.0  BULK RATES
* * * * *

4.7  Annual Fees

[Revise 4.7 by removing reference to fees in G093 to read as follows:]

    Standard Mail (A) is subject to an annual mailing fee once each 12-
month period. The fee may be paid in advance only for the next year and 
only during the last 30 days of the current service period. The fee 
charged is that in effect on the date of payment. Each mailer who 
enters mail at Standard Mail (A) rates paid with a meter or precanceled 
stamps must pay an annual mailing fee at each post office of mailing; a 
mailer paying this fee may enter clients' mail as well as the mailer's 
own. The mailer whose permit imprint appears on pieces in a mailing 
paid with a permit imprint must show that permit number on the postage 
statement and must pay the annual mailing fee for that permit; this fee 
is in addition to the fee for an application to use permit imprints.
* * * * *

4.9  Preparation

[Revise 4.9b by removing reference to Mailing Online in G093 to read as 
follows:]
    Each Standard Mail (A) mailing is subject to these general 
standards:
* * * * *
    b. Each mailing must contain at least 200 pieces or 50 pounds. See 
E620 for volume requirement eligibility unique to Presorted Standard 
rate mailings. Other volume standards can also apply, based on the rate 
claimed.
* * * * *

G  General Information

* * * * *
[Remove G093, Mailing Online, and remove the preceding headings G000 
and G090.]
* * * * *

P040  Permit Imprints

5.0  MAILINGS

5.1  Minimum Quantity

[Remove 5.1d, which provided for Mailing Online permit imprint 
mailings.]
* * * * *
    These revisions will be incorporated into the pages of the Domestic 
Mail Manual. An appropriate amendment to 39 CFR 111.3 will be published 
in the Federal Register to reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-27906 Filed 10-25-99; 8:45 am]
BILLING CODE 7710-12-P