[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Proposed Rules]
[Pages 264-270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25]


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POSTAL SERVICE

39 CFR Part 111


Preparation Changes for Palletized Standard Mail (A) and Bound 
Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed 
at DBMC Rates

AGENCY: Postal Service, USPS.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The USPS proposes changes to the Domestic Mail Manual (DMM) 
that would require mailers to utilize one Labeling List (L605) for 
Standard Mail (A) packages of flats, letter trays, and sacks prepared 
on pallets, regardless of whether the mail is prepared for entry at 
destination bulk mail center (DBMC) rates; to require mailers to 
utilize Labeling List L605 for Standard Mail (A) and Standard Mail (B) 
machinable parcels prepared in sacks or on pallets when mail for 
auxiliary service facility (ASF) service areas is prepared for and 
claimed at DBMC rates; to implement package reallocation between ASFs 
and BMCs for Standard Mail (A) packages of flats placed on pallets; and 
to utilize Labeling List L605 for the preparation of all Standard Mail 
(B) when mail for ASF service areas is prepared for and claimed at DBMC 
rates and for Bound Printed Matter other than machinable parcels 
prepared on pallets.

DATES: Comments must be received on or before February 3, 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 between 9 a.m. and 4 
p.m., Monday through Friday at USPS Headquarters Library, 475 L' Enfant 
Plaza SW, 11th Floor N, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Karen A. Magazino, (202) 268-3854 or 
Barry Elliott, (202) 268-2731.

SUPPLEMENTARY INFORMATION: Two labeling lists currently are used by 
mailers to prepare Standard Mail (A) machinable parcels and all 
Standard Mail (A) placed on pallets. Generally, when a mailing is being 
prepared, either DMM Labeling List L601 or Labeling List L602 is used 
to sort the mail, depending on whether or not the mailer is planning to 
claim DBMC rates. Regardless of which list is used, the overall result 
is less than optimal because L601 does not include the ASFs as a 
separate sort level and L602 does not include ZIP Codes for offshore 
destinations. L601 also is used to sort Standard Mail (B) machinable 
parcels. ASFs are not included on L601 because the Postal Service wants 
to direct machinable parcels to BMCs, where they are processed on 
parcel sorting machines. Consequently, when Standard Mail (A) flats, 
letter trays, and sacks are not being prepared for drop shipment at 
DBMC rates and Labeling List L601 is used, the beneficial ASF pallets 
are not prepared, even when there is sufficient volume (e.g., 500 
pounds) to prepare such pallets. Consequently, the mail for the ASF 
service area is placed on a BMC service area pallet and must be 
processed by the parent BMC.
    Labeling List L602 is used to define DBMC rate eligibility for 
Standard Mail. Because mail for offshore destinations is not entitled 
to DBMC rates, these ZIP

[[Page 265]]

Codes are not included in L602 and mail for such destinations cannot 
currently be placed on DBMC pallets prepared using this list. The 3-
digit service areas that are considered offshore destinations are 006-
009, 967-969, and 995-999. As a result, when a mailer sorts an address 
file for entry at DBMC rates using this labeling list, the offshore 
mail is generally entered at origin and must be processed at the origin 
BMC and transported through the postal network to the destination BMC 
serving the offshore destination. This mail is frequently placed in 
sacks because it cannot be placed on DBMC pallets and it is not 
permissible to prepare packages of flats on mixed BMC pallets. 
Ultimately, the preparation and entry point of the offshore mail is 
determined by which labeling list is used to prepare the mailing.

Proposal To Use One Labeling List (L605) for Standard Mail (A) 
Flats, Letter Trays and Sacks Prepared on Pallets

    The Mailers' Technical Advisory Committee (MTAC) approved a work 
group, the Presort Optimization Work Group, comprised of 
representatives of the Postal Service, presort software vendors, mail 
owners, and printers, to identify opportunities to improve the overall 
presort of mailings. This group identified the two anomalies discussed 
above. They indicated that the most viable solution for the offshore 
mail is to allow it to ride along on DBMC pallets (or in sacks if 
machinable parcels) that may be drop shipped to destination BMCs.
    Based on the input of the MTAC Work Group, the Postal Service 
proposes to address these anomalies by requiring mailers to use a 
single Labeling List, L605, for all Standard Mail (A) flats, letter 
trays, and sacks prepared on pallets, regardless of where the mail is 
deposited or what rates are claimed. L605 delineates the ASF service 
areas and also includes the ZIP Codes for the offshore destinations 
within their respective BMC service areas. With this change, the 
offshore mail will ``ride along'' with the DBMC mail but will not be 
eligible for the DBMC discount. The benefit is that the handling of 
offshore mail at the origin BMC will be bypassed and service to the 
offshore mail should improve. The three BMCs (New Jersey, San 
Francisco, and Seattle) that presently service offshore destinations 
are already receiving BMC service area pallets and sacks that contain 
offshore mail prepared using Labeling List L601. Therefore, the 
addition of offshore mail to these DBMC containers should have no 
negative impact.
    Requiring the use of Labeling List L605 for all Standard Mail (A) 
flats, letter trays, and sacks prepared on pallets will also ensure 
that the eight ASFs are always included in the presort logic hierarchy 
and that ASF pallets are prepared when the volume warrants.
    Labeling List L601 will be retained and will continue to be 
applicable for Standard Mail (A) and Standard Mail (B) machinable 
parcels, except when mail for ASF service areas is prepared for and 
claimed at DBMC rates.
    Current Labeling List L602, which contains the ZIP Code ranges for 
DBMC rate eligibility will be deleted from the Domestic Mail Manual. 
This information will appear, instead, in DMM Module E. This revision 
will not change current standards for DBMC rate eligibility.

Package Reallocation of Packages of Standard Mail (A) Flats To 
Protect the BMC Pallet

    To ensure that the creation of an ASF pallet is not detrimental to 
a BMC pallet, the Postal Service also proposes to allow protection of 
the BMC pallet through the optional use of package reallocation between 
a ``child'' ASF and the ``parent'' BMC pallet. Package reallocation for 
protecting a BMC pallet is similar to the option implemented on July 
29, 1999, for protecting the SCF pallet. In protecting a BMC pallet, 
any amount of mail necessary to achieve the minimum BMC pallet weight 
could be reallocated from one ASF pallet and the ASF pallet could be 
eliminated if necessary. Mailers who choose to utilize package 
reallocation to protect the BMC pallet must use Presort Accuracy 
Validation and Evaluation (PAVE) certified presort software.

Utilization of DMM Labeling Lists L601 and L605 for Preparation of 
Standard Mail (B)

    The proposed elimination of L602 also affects Parcel Post (Parcel 
Select) claimed at DBMC rates because that list is currently used to 
define eligibility and preparation for all mail claimed at those rates. 
Accordingly, the Postal Service proposes that all Standard Mail (B) 
entered at BMCs or ASFs for DBMC rates be prepared using L605 and DBMC 
rate eligibility, which would not change, will be determined based on 
an exhibit in DMM E652. In addition, palletized Bound Printed Matter 
(other than machinable parcels) will be prepared using L605 for 
sortation to ASF/BMC pallets. L605 will also remain applicable for BMC 
Presort and OBMC presort of nonmachinable Parcel Post. L601 will 
continue to be used for machinable parcels except when mail for ASF 
service areas is prepared for and claimed at DBMC rates.
    The proposed implementation date for all of the changes contained 
in this proposed rule is July 13, 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 revisions of the Domestic Mail Manual (DMM), incorporated 
by reference in the Code of Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, 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 (DMM) 
as set forth below:

Domestic Mail Manual (DMM)

E. Eligibility

* * * * *

E651  Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
5.0  DBMC DISCOUNT
[Amend 5.1 by replacing ``L602'' with ``Exhibit 5.1'' to read as 
follows.]

5.1  Definition

    For this standard, destination bulk mail center (DBMC) includes all 
bulk mail centers (BMCs) and auxiliary service facilities (ASFs) as 
shown in Exhibit 5.1.

[Add new Exhibit 5.1.]

                    Exhibit 5.1.--BMC/ASF--DBMC RATES
------------------------------------------------------------------------
        Eligible destination ZIP codes               Entry BMC/ASF
------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127, 340.  BMC NEW JERSEY NJ 00102.

[[Page 266]]

 
010-067, 120-123, 128, 129...................  BMC SPRINGFIELD MA 05500.
130-136, 140-149.............................  ASF BUFFALO NY 140.
150-168, 260-266, 439-447....................  BMC PITTSBURGH PA 15195.
080-084, 137-139, 169-199....................  BMC PHILADELPHIA PA
                                                19205.
200-212, 214-239, 244, 254, 267, 268.........  BMC WASHINGTON DC 20499.
240-243, 245-249, 270-297, 376...............  BMC GREENSBORO NC 27075.
298, 300-312, 317-319, 350-352, 354-368, 373,  BMC ATLANTA GA 31195.
 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,     BMC JACKSONVILLE FL
 347, 349.                                      32099.
369-372, 375, 380-397, 700, 701, 703-705,      BMC MEMPHIS TN 38999.
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-427,  BMC CINCINNATI OH 45900.
 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497....................  BMC DETROIT MI 48399.
500-516, 520-528, 612, 680, 681, 683-689.....  BMC DES MOINES IA 50999.
498, 499, 540-551, 553-564, 566..............  BMC MPLS/ST PAUL MN
                                                55202.
570-577......................................  ASF SIOUX FALLS SD 570.
565, 567, 580-588............................  ASF FARGO ND 580.
590-599, 821.................................  ASF BILLINGS MT 590.
463, 464, 530-532, 534, 535, 537-539, 600-     BMC CHICAGO IL 60808.
 611, 613.
420, 423, 424, 475-479, 614-620, 622-631, 633- BMC ST LOUIS MO 63299.
 639.
640, 641, 644-658, 660-662, 664-679, 739.....  BMC KANSAS CITY KS 64399.
730, 731, 734-738, 740, 741, 743-746, 748,     ASF OKLAHOMA CITY OK 730.
 749.
706, 710-712, 718, 733, 747, 750-799, 885....  BMC DALLAS TX 75199.
690-693, 800-816, 820, 822-831...............  BMC DENVER CO 80088.
832-834, 836, 837, 840-847, 893, 898, 979....  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864...  ASF PHOENIX AZ 852.
865, 870-875, 877-884........................  ASF ALBUQUERQUE NM 870.
889-891, 900-908, 910-928, 930-935...........  BMC LOS ANGELES CA 90901.
894, 895, 897, 936-966.......................  BMC SAN FRANCISCO CA
                                                94850.
835, 838, 970-978, 980-986, 988-994..........  BMC SEATTLE WA 98000.
------------------------------------------------------------------------

5.2  Eligibility

[Amend 5.2 by replacing ``BMC or ASF'' with ``DBMC'' to read as 
follows:]
    Pieces in a mailing that meet the standards in 1.0 through 5.0 are 
eligible for the DBMC rate when deposited at a BMC or ASF, addressed 
for delivery within that facility's service area (ZIP Code range), and 
placed in a tray, sack, or pallet (subject to the standards for the 
rate claimed) that is labeled to that BMC or ASF or to a postal 
facility within its service area. With the exception of pieces for 3-
digit service areas that are not listed in Exhibit 5.1, all pieces in 
an ADC or AADC sack or tray are eligible for the DBMC discount if the 
ADC or AADC facility ZIP Code (as shown on Line 1 of the corresponding 
container label) is within the service area of the BMC or ASF at which 
the sack or tray is deposited. With the exception of pieces for 3-digit 
service areas that are not listed in Exhibit 5.1, all pieces in a 
palletized ADC package are eligible for the DBMC discount if the ADC 
facility that is the destination of the package (determined by using 
the label to ZIP Code in Column B of L004) is within the service area 
of the BMC or ASF at which it is deposited. DBMC rate mail may also be 
eligible for a presort or automation discount, subject to the 
corresponding standards.
* * * * *

E652  Parcel Post

1.0  BASIC STANDARDS
* * * * *

1.2  General

[Revise 1.2 to read as follows:]
    For Parcel Post mailings claimed at DBMC, DSCF, and DDU rates, 
pieces must meet the applicable standards in 1.0 through 6.0 and meet 
the following criteria:
    a. May be bedloaded, on pallets, in pallet boxes on pallets, in 
sacks, or in other authorized containers as specified in 2.0 through 
6.0, depending on the facility at which the pieces are deposited.
    b. May not be plant-loaded.
    c. Be part of a single mailing of 50 or more pieces that are 
eligible for and claimed at any Parcel Post rate or rates.
    d. Be deposited at a destination BMC (DBMC) or auxiliary service 
facility or other equivalent facility; destination sectional center 
(DSCF); or destination delivery unit (DDU) as applicable for the rate 
claimed and as specified by the USPS.
    e. Be addressed for delivery within the ZIP Code ranges that the 
applicable entry facility serves.

[Revise 1.3 to read as follows:]

1.3  DBMC Rates

    For DBMC rates, pieces must meet the applicable standards in 1.0 
through 6.0. In addition, pieces must be part of a Parcel Post mailing 
that is deposited at a BMC or ASF under L605, the pieces deposited at 
each BMC or ASF must be addressed for delivery within the ZIP Code 
range of that facility, must be within a ZIP Code eligible for DBMC 
rates under Exhibit 1.3, and must be prepared in accordance with M041 
and M045 or M630. Mail meeting the additional criteria in 5.0 may be 
deposited at a designated facility other than the BMC or ASF where the 
DBMC parcels would otherwise be deposited.
[Add new Exhibit 1.3]

                    Exhibit 1.3.--BMC/ASF--DBMC Rates
------------------------------------------------------------------------
        Eligible destination ZIP codes               Entry BMC/ASF
------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127, 340.  BMC NEW JERSEY NJ 00102.
010-067, 120-123, 128, 129...................  BMC SPRINGFIELD MA 05500.

[[Page 267]]

 
130-136, 140-149.............................  ASF BUFFALO NY 140.
150-168, 260-266, 439-447....................  BMC PITTSBURGH PA 15195.
080-084, 137-139, 169-199....................  BMC PHILADELPHIA PA
                                                19205.
200-212, 214-239, 244, 254, 267, 268.........  BMC WASHINGTON DC 20499.
240-243, 245-249, 270-297, 376...............  BMC GREENSBORO NC 27075.
298, 300-312, 317-319, 350-352, 354-368, 373,  BMC ATLANTA GA 31195.
 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,     BMC JACKSONVILLE FL
 347, 349.                                      32099.
369-372, 375, 380-397, 700, 701, 703-705,      BMC MEMPHIS TN 38999.
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-427,  BMC CINCINNATI OH 45900.
 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497....................  BMC DETROIT MI 48399.
500-516, 520-528, 612, 680, 681, 683-689.....  BMC DES MOINES IA 50999.
498, 499, 540-551, 553-564, 566..............  BMC MPLS/ST PAUL MN
                                                55202.
570-577......................................  ASF SIOUX FALLS SD 570.
565, 567, 580-588............................  ASF FARGO ND 580.
590-599, 821.................................  ASF BILLINGS MT 590.
463, 464, 530-532, 534, 535, 537-539, 600-     BMC CHICAGO IL 60808.
 611, 613.
420, 423, 424, 475-479, 614-620, 622-631, 633- BMC ST LOUIS MO 63299.
 639.
640, 641, 644-658, 660-662, 664-679, 739.....  BMC KANSAS CITY KS 64399.
730, 731, 734-738, 740, 741, 743-746, 748,     ASF OKLAHOMA CITY OK 730.
 749.
706, 710-712, 718, 733, 747, 750-799, 885....  BMC DALLAS TX 75199.
690-693, 800-816, 820, 822-831...............  BMC DENVER CO 80088.
832-834, 836, 837, 840-847, 893, 898, 979....  ASF SALT LAKE CTY UT 840.
850, 852, 853, 855-857, 859, 860, 863, 864...  ASF PHOENIX AZ 852.
865, 870-875, 877-884........................  ASF ALBUQUERQUE NM 870.
889-891, 900-908, 910-928, 930-935...........  BMC LOS ANGELES CA 90901.
894, 895, 897, 936-966.......................  BMC SAN FRANCISCO CA
                                                94850.
835, 838, 970-978, 980-986, 988-994..........  BMC SEATTLE WA 98000.
------------------------------------------------------------------------

[Redesignate 1.4 through 1.5 as 1.5 through 1.6 and insert new number 
1.4 to read as follows:

1.4  DSCF and DDU Rates

    For DSCF and DDU rates, pieces must meet the applicable standards 
in 1.0 through 1.6 and meet the following criteria:
[Move former 1.3 (e) and (f) to new section as 1.4 (a) and (b).]
* * * * *

L  Labeling Lists

* * * * *

L600  Standard Mail

[Amend the heading of Labeling List 601 by removing ``Machinable 
Parcels'' to read as follows:]

L601  BMCs

[Revise introductory paragraph to read as follows:]
    Use this list for:
    (a) Standard Mail (A) machinable parcels if ASF mail is not 
prepared for and claimed at DBMC rates,
    (b) Bound Printed Matter machinable parcels,
    (c) Parcel Post if ASF mail is not prepared for and claimed at DBMC 
rates except non-machinable BMC Presort and OBMC Presort, and
    (d) Presorted Special Standard Mail and Presorted Library Mail to 
BMC destinations.
* * * * *
[Remove Labeling List 602, BMCs/ASFs-DBMC Rates.]
* * * * *
[Revise the heading of Labeling List 605 to read as follows:]

L605  BMCs/ASFs

[Revise introductory paragraph to read as follows:]
    Use this list for:
    (a) Standard Mail (A) pallets of packages of flats, letter trays, 
and/or sacks,
    (b) Standard Mail (A) machinable parcels when mail for ASF service 
areas is prepared for and claimed at DBMC rates,
    (c) Parcel Post when mail for ASF service areas is prepared for and 
claimed at DBMC rates,
    (d) Parcel Post nonmachinable parcels claimed at BMC Presort and 
OBMC Presort rates, and
    (e) Bound Printed Matter packages and/or sacks on pallets.
* * * * *

M  MAIL PREPARATION AND SORTATION

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.2  Presort Levels

[Amend 1.2 by revising 1.2n to read as follows:]
    Terms used for presort levels are defined as follows:
* * * * *
    n. ASF/BMC: all pieces are addressed for delivery in the service 
area of the same auxiliary service facility (ASF) or bulk mail center 
(BMC) (see L601 or L605, as applicable).
* * * * *

M040  PALLETS

M041  General Standards

* * * * *
5.0  PREPARATION
* * * * *

5.1  Presort

[Amend 5.1 by revising the last two sentences to read as follows:]
    * * * The standards for package reallocation to protect the SCF or 
BMC pallet (M045.5.0 and 6.0) are optional methods of pallet 
preparation designed to retain as much mail as possible at the SCF or 
BMC level. These standards 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 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

[[Page 268]]

performed, must be done for the complete mailing job).

5.2  Required Preparation

[Amend 5.2 by revising 5.2a to read 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). For mail that is 
prepared on pallets, 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 Standard Mail (A) packages of 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. For packages of Standard Mail 
(A) flats on pallets prepared under the standards for package 
reallocation to protect the BMC pallet (M045.6.0), not all mail for a 
required ASF pallet is required to be on an ASF 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
* * * * *

6.4  Standard Mail (A)

[Amend 6.4 by revising the first sentence to read as follows:]
    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 or 6.0, 
using package reallocation, may not always result in all packages being 
placed on the finest pallet level possible.* * *
* * * * *

M045  Palletized Mailings

* * * * *
4.0  PALLET PRESORT AND LABELING
4.1  Packages, Bundles, Sacks or Trays on Pallets
[Amend 4.1 by revising 4.1e to read as follows:]
    Preparation and Line 1 labeling:
* * * * *
    e. As appropriate:
    (1) Periodicals: ADC: required; for Line 1, use L004.
    (2) Standard Mail: BMC/ASF: required; for Line 1, use L605. If 
package reallocation to protect the BMC pallet is used and the BMC 
pallet contains mail for the ASF service area, for Line 1, use L601.
* * * * *

4.2  Machinable Parcels-Standard Mail

[Amend 4.2 by revising 4.2b and 4.2c to read as follow:]
    Preparation sequence and Line 1 labeling:
* * * * *
    b. ASF: allowed and required only when mail for ASF service areas 
is prepared for and claimed at DBMC rates; for Line 1, use L605. DBMC 
rate eligibility is determined by Exhibit E651.5.1 and Exhibit 
E652.1.3.
    c. Destination BMC: required; for Line 1, use L601 (L605 when mail 
for ASF service areas is prepared for and claimed at DBMC rates). DBMC 
rate eligibility is determined by Exhibit E651.5.1 and Exhibit 
E652.1.3.
* * * * *
[Revise heading of 5.0 to read as follows:]
5.0  PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS 
AND IRREGULAR PARCELS AND STANDARD MAIL (A) FLATS ON PALLETS

5.1  Basic Standards

[Amend 5.1 by revising the first sentence to read as follows:]
    Package reallocation to protect the SCF pallet 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 5.5 * * *
* * * * *
[Redesignate 6.0 through 14.0 as 7.0 through 15.0, respectively, and 
insert new number 6.0 to read as follows:]
6.0  PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL (A) 
FLATS ON PALLETS

6.1  Basic Standards

    Package reallocation to protect the BMC pallet level is an optional 
preparation method (if performed, package reallocation to protect the 
BMC pallet must be done for the complete mailing job); only PAVE-
certified presort software may be used to create pallets under the 
standards in 6.2 through 6.4. The software will determine if mail for a 
BMC service area would fall beyond the BMC level when ASF pallets are 
prepared. Reallocation is performed only when there is mail for the BMC 
service area that would fall beyond the BMC pallet level. The amount of 
mail required to bring the mail that would fall beyond the BMC pallet 
level back to a BMC level is the minimum volume that would be 
reallocated from an ASF pallet, where possible. The following 
``parent'' BMCs can be protected with package reallocation by using 
mail from the ASF ``child'' pallets indicated in Exhibit 6.1.

               Exhibit 6.1.--``Parent'' BMC/``Child'' ASF
------------------------------------------------------------------------
``Parent'' BMC: service areas     ``Child'' ASF: ZIP Code areas served
------------------------------------------------------------------------
Pittsburgh BMC...............  Buffalo ASF: 130-136; 140-149.
Denver BMC...................  Albuquerque ASF: 865, 870-875, 877-884.
                               Phoenix ASF: 850, 852, 853, 855-857, 859,
                                860, 863, 864.
                               Salt Lake City ASF: 832-834, 836, 837,
                                840-847, 893, 898, 979.
                               Billings ASF: 590-599, 821.
Dallas BMC...................  Oklahoma City ASF: 730, 731, 734-738,
                                740, 741, 743-746, 748, 749.
Des Moines BMC...............  Sioux Falls ASF: 570-577
Minneapolis BMC..............  Fargo ASF: 565, 567, 580-588.
------------------------------------------------------------------------


[[Page 269]]

6.2  General Reallocation Rules

    Reallocation rules:
    a. The reallocation process does not affect package preparation. 
Reallocate only complete packages and only the minimum number of 
packages necessary to create a BMC 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 a BMC pallet.
    b. Using the parent BMC/child ASF table provided in Exhibit 6.1, 
reallocate packages from the ASF pallet to create a BMC pallet. The ASF 
pallet can be eliminated if necessary to protect the BMC pallet.
    c. When reallocating mail to create a BMC pallet, reallocate mail 
only from the ASF pallet. Package reallocation is only to be used 
between the ``parent'' BMC and the ``child'' ASF. Mail from finer 
levels of pallets (e.g., SCF pallet) may not be reallocated to protect 
BMC pallets.
    d. 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.

6.3  Reallocation of Packages From ASF Pallets

    When reallocating packages from ASF pallets:
    a. Using the parent BMC/child ASF table provided in Exhibit 6.1, 
attempt to identify an ASF pallet of adequate weight that can support 
reallocation of one or more packages to bring the mail that has fallen 
through the BMC level back to the BMC level without eliminating the ASF 
pallet. A sufficient amount of mail must remain on the ASF pallet after 
reallocation to meet the ASF pallet weight minimum. If an ASF pallet of 
adequate weight is available, create a BMC pallet by combining the 
reallocated mail from the ASF pallet with the mail that would fall 
beyond the BMC pallet level.
    b. If no single ASF pallet within the BMC service area contains an 
adequate volume of mail to allow reallocation of the portion of the 
mail on a pallet as described in the previous step, then eliminate one 
ASF pallet and reallocate all of the mail to create a BMC pallet by 
combining it with the mail that would fall beyond the BMC pallet level. 
As a result, the software will not prepare one ASF pallet for the ASF 
service area if it is detrimental to the BMC pallet.

6.4  Documentation

    Mailings must be supported by documentation produced by PAVE-
certified software meeting the standards in P012.
* * * * *

M073  COMBINED MAILINGS OF STANDARD (A) AND STANDARD (B) PARCELS

1.0  COMBINED MACHINABLE PARCELS--RATES OTHER THAN PARCEL POST OBMC 
PRESORT, BMC PRESORT, DSCF, AND DDU

* * * * *

1.6   Sack Preparation

[Amend 1.6 by revising 1.6a(2) and 1.6a(3) to read as follows:]
    The requirements for sack preparation are as follows:
    a. Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    (2) Destination ASF: allowed and required only when mail for ASF 
service areas is prepared for and claimed at DBMC rates (minimum of 10 
pieces/20 pounds/1,000 cubic inches, smaller volume not permitted); for 
Line 1, use L605. DBMC rate eligibility is determined by Exhibit 
E651.5.1 and Exhibit E652.1.3.
    (3) Destination BMC: required (minimum of 10 pieces/20 pounds/1.000 
cubic inches, smaller volume not permitted); for Line 1, use L601 (L605 
when mail for ASF service areas is prepared for and claimed at DBMC 
rates). DBMC rate eligibility is determined by Exhibit E651.5.1 and 
Exhibit E652.1.3.
* * * * *

M610  Presorted Standard Mail (A)

* * * * *
5.0  MACHINABLE PARCELS
* * * * *

5.2  Sack Preparation

[Amend 5.2 by revising 5.2(b) and 5.2(c) to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. Destination ASF: allowed and required only when mail for ASF 
service areas is prepared for and claimed at DBMC rates (10 pound 
minimum, smaller volume not permitted); for Line 1 use L605. DBMC rate 
eligibility is determined by Exhibit E651.5.1.
    c. Destination BMC: required (10 pound minimum, smaller volume not 
permitted); for Line 1, use L601 (L605 when mail for ASF service areas 
is prepared for and claimed at DBMC rates). DBMC rate eligibility is 
determined by Exhibit E651.5.1.
* * * * *

M630  Standard Mail (B)

* * * * *
6.0  MACHINABLE PARCELS
* * * * *

6.2  Sack Preparation

[Amend 6.2 by revising 6.2b and 6.2c to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. ASF: allowed and required only when mail for ASF service areas 
is prepared for and claimed at DBMC rates (minimum of 10 pieces/20 
pounds/1,000 cubic inches, smaller volume not permitted); for Line 1, 
use L605. DBMC rate eligibility is determined by Exhibit E652.1.3.
    c. Destination BMC: required (minimum of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); for Line 1, use L601 (L605 
when mail for ASF service areas is prepared for and claimed at DBMC 
rates). DBMC rate eligibility is determined by Exhibit E652.1.3.
* * * * *

P POSTAGE AND PAYMENT METHODS

P000  Basic information

P010  General Standards

* * * * *

P012  DOCUMENTATION

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

2.2  Format and Content

[Amend 2.2 by replacing last two sentences of 2.2d (4) to read as 
follows:]
    For First-Class Mail, Periodicals, and Standard Mail (A), 
standardized documentation includes:
* * * * *
    (4) * * * Document SCF or BMC pallets created as a result of 
package reallocation under M045.5.0 or 6.0 on the USPS Qualification 
Report by designating the protected pallet with an identifier of 
``PSCF'' (for an SCF pallet) or ``PBMC'' (for a BMC pallet). These 
identifiers are required to appear only on the USPS Qualification 
Report; they are not required to appear on pallet

[[Page 270]]

labels or in any other mailing documentation.
* * * * *

2.4  Sortation Level

[Amend 2.4 by inserting new sortation level and abbreviation 
immediately below SCF pallets (created from package reallocation) to 
read 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
------------------------------------------------------------------------
 
                  *        *        *        *        *
BMC [pallets created from package           PBMC
 reallocation].
------------------------------------------------------------------------

* * * * *
    An appropriate amendment to 39 CFR 11.3 to reflect these changes 
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-25 Filed 1-3-00; 8:45 am]
BILLING CODE 7710-12-P