[Federal Register Volume 64, Number 236 (Thursday, December 9, 1999)]
[Proposed Rules]
[Pages 68965-68967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31968]


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POSTAL SERVICE

39 CFR Part 111


Presentation of First-Class and Standard Mail (A) Automation 
Letter Mail for Verification Under New SAVE Verification Procedures and 
Revisions to Combined Postage Payment Standards

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service will implement new Standardized Acceptance 
and Verification (SAVE) procedures for First-Class and Standard Mail 
(A) automation letter mail in mid-December 1999. These new SAVE 
procedures will replace existing verification procedures for many 
First-Class and Standard Mail (A) automation letter mailings. To 
facilitate these new SAVE procedures, the Postal Service is proposing 
that, effective March 1, 2000, for mailings produced by MLOCRs and 
barcode sorters, and effective July 1, 2000, for mailings produced by 
other means, mailers of First-Class and Standard Mail (A) automation 
letter rate mailings must physically separate Mixed AADC trays from 
other mail when the mailings are presented to the Postal Service for 
verification. In addition, for mailings of 10,000 or more pieces, the 
Postal Service is proposing to eliminate the current option that 
standardized documentation is not required with a mailing when the 
exact rate of postage is affixed to each piece or when it consists of 
identical weight pieces and is physically separated by rate category 
when presented to the Postal Service for verification. Under the 
proposal, effective March 1 for mailings produced by MLOCRs and barcode 
sorters, and effective July 1 for mailings produced by other means, 
each First-Class and Standard Mail (A) automation letter rate mailing 
of 10,000 or more pieces must be accompanied by paper documentation in 
a standardized format or, if authorized, with electronic documentation.
    The Postal Service recently revised rate marking requirements for 
MLOCR mailers and documentation requirements for mailers who 
participate in automation letter mail value added refund (VAR) (DMM 
P014.4.0) and combined postage payment systems (DMM P760). In addition 
to these changes, the Postal Service is also hereby proposing, 
effective March 1, 2000, to amend the DMM standards for combined 
mailings to specify that First-Class Mail pieces weighing over one 
ounce and paid with precanceled stamps will not be permitted to be 
included in such mailings.

DATES: Comments must be received on or before January 10, 2000.

ADDRESSES: Mail or deliver written comments to the Manager, Mail 
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW, 
Room 6800, Washington, DC 20260-2405. Copies of all written comments 
will be available for inspection and photocopying at USPS Headquarters 
Library, 475 L'Enfant Plaza SW, 11th Floor N, Washington, DC between 9 
a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, (202) 268-6351 
(Domestic Mail Manual changes), or Scott Hamel, (703) 329-3660 (SAVE 
procedures).

SUPPLEMENTARY INFORMATION: The Postal Service is working on a number of 
fronts to help business mailers provide the highest quality of letter/
card mail possible. Programs such as the Coding Accuracy Support System 
(CASS), Mail Quality Control (MQC), Presort Accuracy Validation and 
Evaluation (PAVE), and Mail Preparation Total Quality Management 
(MPTQM) provide quality assurance within the mailer's mail preparation 
process so that mailings presented to the Postal Service are properly 
prepared and can be handled efficiently.
    Postal Service verification of mailings for proper preparation 
before entry into the mailstream is also a form of quality control. The 
Postal Service is moving toward greater use of technology in this 
verification process using devices such as Automated Barcode Evaluation 
(ABE), and proposed for early 2000 (initially for diagnostic purposes 
only) use of portable barcode verifiers for barcodes on tray and sack 
labels, and proposed for fall 2000, the Mailing Evaluation Readability 
Lookup Instrument (MERLIN). Technology promises to be the most viable 
and objective means of measuring quality. The Postal Service 
recognizes, however, that there always will be a need for commensurate 
manual verification procedures to cover instances when automated 
devices are not available. The SAVE verification procedures are 
primarily manual.
    SAVE is the Postal Service's response to requests by business 
mailers for a verification process that is predictable, fair, 
consistent, and documented. SAVE also directs Postal Service attention 
to where the risk of poor quality lies. There are two verification 
levels and error rate thresholds under SAVE. The first level is for 
mailers who have been

[[Page 68966]]

certified by the Postal Service under the Mail Preparation Total 
Quality Management (MPTQM) program. The second level is for mailers who 
are not part of the MPTQM program. Mailers who have made commitments to 
quality under the MPTQM program will have certain portions of SAVE 
verifications performed on a less frequent basis, or not at all if that 
aspect of mail preparation is verified under MPTQM assurance reviews. 
Under SAVE, mailers will receive feedback on the quality of their mail 
to facilitate resolution of mail quality problems. SAVE incorporates 
most of the separate procedures used today to verify mail. For example, 
it employs the current ABE and short paid mail verification procedures. 
However, under SAVE, various separate verification checks have been 
standardized, made more complete, and structured. Corrective actions 
have been clarified and more diagnostic information will be provided to 
mailers. SAVE provides verification procedures for First-Class and 
Standard Mail (A) automation letter mailings, including those submitted 
under value added refund (VAR) procedures and combined mailing postage 
payment systems. A standard 4% error tolerance will apply to mailings 
verified under SAVE, including VAR and combined mailings. VAR mailings, 
for the first time, will be treated like all other mailings when 
postage adjustments become necessary. Rather than lose a value added 
refund when the error tolerance is exceeded, VAR mailers will pay a 
postage adjustment.
    The amount of additional postage that must be paid for a mailing 
exceeding the 4% error tolerance under SAVE procedures will be 
calculated by determining the difference between the First-Class 
single-piece rate postage (based on weight) and the average weight per 
piece based on the First-Class or Standard Mail (A) automation letter 
rates claimed by the mailer. This difference in postage per piece will 
be multiplied by the number of pieces in the mailing to determine the 
total workshare discount. The total workshare discount will be 
multiplied by the verification error percentage to determine the 
additional postage due.
    Mailers were provided information about SAVE in business sessions 
at the last two Postal Forums. During Postal Forum sessions the primary 
Postal Service SAVE development technician explained the procedures in 
great detail and demonstrated the forms to be used, and the process for 
checking mail and determining postage adjustments. Several detailed 
presentations also have been made to members of the National 
Association of Presort Mailers, at their request. In addition, every 
MLOCR mailer in the country was invited by letter to a special meeting 
in April 1999 to hear about SAVE and other topics. Feedback from these 
groups was used when designing the procedures. Notice of the start-up 
of SAVE procedures for First-Class and Standard Mail (A) automation 
letter mail prepared with MLOCRs and/or barcode sorters beginning in 
the middle of December 1999 was announced in the December 2, 1999, 
Postal Bulletin. That Postal Bulletin contains information concerning a 
phase-in period from mid-December 1999 through February 29, 2000. 
During the phase-in period, mailings found to have errors under the 
SAVE verification procedures will not be assessed additional postage 
unless the error rate for the mailing is 5% or more.
    These SAVE standards apply to the initial acceptance procedures 
applied by the business mail entry unit. Nothing in SAVE or other 
verification procedures prevents independent review of mail by Revenue 
Assurance, the Inspection Service, the Office of Inspector General, or 
others. Nor do they prevent a postage adjustment based on these 
reviews. In instances of fraud or related activities, the postage 
adjustment may be based on the mail as presented to the Postal Service 
even if the overall error rate is less than that established in these 
procedures.
    This proposed rule requests comments from mailers on two key mail 
preparation changes that are necessary for smooth application of the 
SAVE verification procedures. The first change will require mailers of 
First-Class and Standard Mail (A) automation letter mail to separate 
mixed AADC trays from other mail when presented to the Postal Service 
for verification. The second change will require submission of 
standardized documentation with all mailings of First-Class and 
Standard Mail (A) automation letter mail that contain 10,000 or more 
pieces. That is, the current provision allowing mailers to submit 
mailings without documentation if the mailings either (1) have exact 
postage affixed to each piece or (2) consist of identical weight pieces 
that are physically separated by rate category when presented to the 
Postal Service for verification will be deleted for mailings of 10,000 
or more pieces.
    As part of its efforts towards a standardized process, the Postal 
Service has separately adopted several clearer, standardized reports to 
be presented by the mailer with First-Class and Standard Mail (A) 
automation mailings that are submitted under VAR and/or combined 
postage payment systems. In addition, the Postal Service has announced 
new marking requirements for First-Class and Standard Mail (A) 
automation letter mailings that are prepared using MLOCRs and for which 
the MLOCR is used to apply the rate marking. These new marking and 
documentation requirements were developed in conjunction with MLOCR 
manufacturers and supporting software vendors and were announced and 
discussed at a special MLOCR users group meeting and at the last two 
Postal Forums. The Domestic Mail Manual changes incorporating the new 
marking and documentation requirements were published in the Postal 
Bulletin of December 2, 1999. The documentation formats have been 
incorporated in software provided by MLOCR manufacturers. If copies of 
the documentation are not available from an MLOCR vendor, sample copies 
may be obtained from the Rates and Classification Service Center (RCSC) 
that serves a particular mailer. Beginning January 3, 2000, the new 
markings must be used on pieces in First-Class and Standard Mail (A) 
automation letter mailings that are prepared using MLOCRs and for which 
the MLOCR is used to apply the rate marking. Also effective January 3, 
2000, all mailers entering mail under VAR and/or combined postage 
payment procedures (DMM P014 and P760) will be required to meet the new 
documentation requirements. During the SAVE verification process, the 
new markings and documentation will help business mail acceptance 
clerks determine if the proper amount of postage has been claimed by 
the mailer.
    Separate from these mail preparation revisions, but as part of the 
update to the procedures for submitting mailings under the combined 
mailing postage payment system, the Postal Service is hereby proposing 
to clarify the standards concerning precanceled stamp mail contained in 
such mailings. The change limits the weight of First-Class Mail 
prepared with precanceled stamps that are entered under the combined 
mailing postage payment system to pieces weighing a maximum of one 
ounce. The Postal Service does not provide a precanceled stamp that 
represents postage for additional ounces of First-Class Mail. Therefore 
First-Class rate precanceled stamp mailers would only be able to affix 
postage for any additional ounces for pieces weighing over one ounce if 
they had a permit for mailer precancelation under DMM P023. 
Additionally, for pieces weighing over two ounces, precanceled stamp

[[Page 68967]]

mailers would not be able to affix postage for the first ounce that 
reflects the lower first-ounce rate for presorted pieces weighing over 
two ounces, as is required for metered mailers under this postage 
payment procedure. The additional documentation that would be required 
to be added to combined mailing procedures to document postage paid and 
owed for precanceled stamp pieces weighing over one ounce would be 
extremely burdensome. Furthermore, the Postal Service understands that 
there are few mailers, if any, that have a need to include First-Class 
mail weighing over one ounce and paid with precanceled stamps in 
combined mailings under DMM P760. Accordingly, the Postal Service 
proposes to revise the DMM to specify that First-Class precanceled 
stamp mail weighing over one ounce may not be included in combined 
mailings.
    In summary, the proposed Domestic Mail Manual changes needed to 
implement the new verification procedures for automation letter 
mailings and to revise the requirements for combined mailings are:
    (1) For First-Class and Standard Mail (A) automation letter 
mailings, mixed AADC trays must be physically separated from other 
trays when the mail is presented to the USPS for verification. The 
proposed effective date for this change is March 1, 2000, for mail 
produced by MLOCRs and barcode sorters, and July 1, 2000, for other 
automation letter mail.
    (2) For all First-Class and Standard Mail (A) automation letter 
mailings containing 10,000 or more pieces, documentation must be 
submitted on paper in a standardized format. Alternatively, if 
authorized by the Postal Service, the standardized documentation may be 
submitted in an electronic format. The proposed effective date for this 
change is March 1, 2000, for mail produced by MLOCRs and barcode 
sorters, and July 1, 2000, for other automation letter mail.
    (3) The Postal Service proposes to amend the DMM standards for 
combined mailings to prohibit inclusion in such mailings of First-Class 
Mail pieces that weigh over one ounce and are paid with precanceled 
stamps. The proposed effective date for this revision is March 1, 2000.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
the following proposed revisions to the Domestic Mail Manual, 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR Part 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

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, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise the following sections of the Domestic Mail Manual as set 
forth below:

M000 General Preparation Standards

* * * * *

M800 All Automation Mail

M810 Letter-Size Mail

1.0 Basic Standards

* * * * *
    [Amend 1.3 to read as follows:]

1.3 Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Each mailing 
must also be accompanied by presort and rate documentation produced by 
PAVE-certified (or, except for Periodicals, MAC-certified) software or 
by standardized documentation under P012. Exception: For mailings of 
fewer than 10,000 pieces, presort and rate documentation is not 
required if postage at the correct rate is affixed to each piece or if 
each piece is of identical weight and the pieces are separated by rate 
when presented for acceptance. Mailers may use a single postage 
statement and a single documentation report for all rate levels in a 
single mailing. Standard Mail (A) mailers may use a single postage 
statement and a single documentation report (with a separate summary 
for carrier route and a separate summary for all other rate levels) for 
both an automation carrier route mailing and a mailing containing 
pieces prepared at 5-digit, 3-digit, and basic automation rates as 
applicable, when both mailings are submitted for entry at the same 
time. Combined mailings of more than one Periodicals publication also 
must be documented under M200. First-Class and Standard Mail (A) 
mailings prepared under the value added refund procedures or as 
combined mailings must meet additional standardized documentation 
requirements under P014 and P760.
* * * * *
    [New 1.8 is added to read as follows:]

1.8 Presentation

    Upon presentation of letter-size automation rate First-Class Mail 
and Standard Mail (A) mailings to the Postal Service for verification, 
mailers must physically segregate mixed AADC trays from other trays in 
the mailing.
* * * * *

P Postage and Payment Methods

P000 Basic Information

* * * * *

P700 Special Postage Payment Systems

* * * * *

P760 First-Class or Standard Mail (A) Mailings With Different Payment 
Methods

* * * * *

2.0 Postage

* * * * *
    [Amend 2.3 to restrict precanceled stamp pieces to those weighing 
one ounce or less to read as follows:]

2.3 Precanceled Pieces--First-Class Mail

    Pieces with precanceled stamps in a combined mailing must not weigh 
more than one ounce and must bear postage for the first ounce in any 
denomination of precanceled stamp permitted in a Presorted or 
automation rate mailing. Additional postage due for precanceled stamp 
pieces in a combined mailing is deducted from the mailer's postage due 
advance deposit account. Full postage at the single-piece First-Class 
rates must be paid on accompanying single-piece rate mail using one of 
the methods under P100. Additional preparation to verify postage due 
may be required by the Postal Service.
* * * * *
    An appropriate amendment to 39 CFR 111.3 to reflect these changes 
will be published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 99-31968 Filed 12-8-99; 8:45 am]
BILLING CODE 7710-12-P