[Federal Register Volume 65, Number 30 (Monday, February 14, 2000)]
[Rules and Regulations]
[Pages 7288-7290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3298]


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POSTAL SERVICE

39 CFR Part 111


Experimental Ride-Along Rate for Periodicals Mail

AGENCY:  Postal Service.

ACTION:  Final rule.

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SUMMARY:  This document provides notice that the Governors of the 
Postal Service have approved a two-year experiment allowing material 
that would otherwise qualify as Standard Mail (A) to ``Ride-Along'' 
with Periodicals mail for a flat rate of $0.10 per piece. This notice 
also establishes basic requirements and procedures for mailing Ride-
Along material.

EFFECTIVE DATE:  February 26, 2000.

FOR FURTHER INFORMATION CONTACT:  Jerome M. Lease, 202-268-5188; or 
Joel Walker, 202-268-3340.

SUPPLEMENTARY INFORMATION:  Under current Postal Service standards, 
Periodicals publications cannot contain certain types and amounts of 
advertising. For example, items such as cosmetic or perfume samples 
cannot be mailed at Periodicals postage rates. Also excluded is 
anything that is not comprised of printed sheets of paper or paper-like 
material; for example, a swatch of fabric, a pacquette of hand cream, 
or a CD-ROM.
    All advertising matter or other enclosures or attachments that do 
not meet the requirements for mailing at Periodicals rates can be 
attached to the publication or included as enclosures but are charged 
Standard Mail (A) postage rates. The rate is computed as if the matter 
is a stand-alone piece of Standard Mail (A), even though the Standard 
Mail (A) matter is processed and delivered along with the rest of the 
Periodicals publication.
    These standards require the mailer to pay processing and delivery 
costs for two pieces (the Periodicals publication and the Standard Mail 
(A) material) even though the Postal Service incurs processing and 
delivery costs for only one piece. Periodicals mailers maintain that 
this extra postage discourages advertisers from including certain kinds 
of advertisements in their publications. Some publishers work around 
this problem by including the Standard Mail (A) matter only in the 
copies that are sold at newsstands, thereby avoiding completely the 
extra postage costs.
    In December 1996, the Periodicals Advisory Group (PAG), an industry 
group comprised of publishers and printers, recommended that the Postal 
Service investigate the idea of a reduced rate of postage for Standard 
Mail (A) material that could be combined with all Periodicals 
subclasses. This recommendation was supported by the Magazine 
Publishers of America and the American Business Press.
    Acting on this recommendation, on September 27, 1999, pursuant to 
39 U.S.C. 3623, the Postal Service filed with the Postal Rate 
Commission a request for a decision recommending an experimental 
``Ride-Along'' classification and rate for Periodicals mail. The 
request was designated as Docket No. MC2000-1 by the Commission. Based 
on a settlement agreement reached among the parties, the Commission 
recommended the experimental classification and rate on February 3, 
2000. This recommendation was approved by the Governors of the Postal 
Service on February 8, 2000, and the Board of Governors set February 
26, 2000, as the implementation date for the experiment, which will 
last two years.
    The experiment will allow a single Standard Mail (A) Ride-Along 
piece in a Periodicals host publication. The Ride-Along piece will be 
charged a flat postage rate of $0.10 per copy. There are very specific 
physical requirements for the Ride-Along piece, which are summarized 
below and detailed in the amendments to the Domestic Mail Manual (DMM) 
that are included in this notice. The Ride-Along postage is added 
separately, so that the addition of a Ride-Along piece does not affect 
the weight, advertising percentage, or postage for the Periodicals host 
piece. This experiment does not affect or change current standards for 
Standard Mail (A) enclosures in Periodicals.
    The duration of this experiment is two years. Revenue and costs for 
this experiment will be attributed to Periodicals mail. The 
classification changes resulting from the experiment are summarized 
below and are detailed in the additions to the DMM included with this 
notice.
    Over the course of the experiment, the Postal Service will collect 
appropriate data to determine the feasibility of a permanent 
classification change. Mailers also will be required to submit a sample 
of the host and Ride-Along mailpiece and will be asked to complete a 
simple questionnaire regarding the mailpiece. During the experiment, 
these sample mailpieces will be available for public inspection via the 
Manager, Pricing, 475 L'Enfant Plaza, SW, Room 6670, Washington, DC 
20260-2406.
    Periodicals mailers will be required to use an alternate postage 
statement (PS Form 3541-RX, 3541-NX, or 3541-NCX, as appropriate) so 
that the Postal Service can collect data on Ride-Along attachments or 
enclosures. No foreign copies will be reported on the Ride-Along 
statements, as Ride-Along pieces are not permitted in foreign copy 
mailings. Foreign copies and other mailings of copies without a Ride-
Along enclosure or attachment will be mailed as a separate edition on 
regular Forms 3541-R, 3541-N, and 3541-NC. Monthly postage statements 
may not be used to report Ride-Along mailings.
    These experimental postage statements will be used only when 
publishers are claiming copies with the Ride-Along rate. All copies 
within the

[[Page 7289]]

mailing must contain the same Ride-Along enclosure or attachment. Ride-
Along enclosures of different weights or different contents must be 
reported on separate postage statements.

Summary of Requirements for Ride-Along Classification Periodicals 
Host Pieces

    This classification change applies to all subclasses of 
Periodicals, including pieces mailed at Regular, In-County, Nonprofit, 
Classroom, and Science-of-Agriculture rates. The addition of a Ride-
Along Standard Mail (A) piece cannot change the shape, processing 
category or affect the uniform thickness of the host piece. In 
addition, for pieces claiming automation discounts, the addition of the 
Ride-Along cannot change the host piece's processing method (automation 
letter, FSM 881 flat, or FSM 1000 flat) or automation compatibility 
(e.g., turning ability and deflection, flexibility, rigidity). 
Publications that are automation compatible and claim automation 
discounts before the addition of the Ride-Along piece must remain 
within the constraints of the automation requirements of the host 
publication in order to use the Ride-Along rate and claim the 
automation discounts.

Ride-Along Pieces Must Be Eligible for Standard Mail (A) Rates

    This classification change is applicable to Standard Mail (A) 
material (advertising or otherwise) attached to or enclosed with the 
Periodicals host copy. A flat rate of $0.10 per copy is charged for 
this attachment or enclosure. Under the experiment, only one Ride-Along 
piece can be attached to a single host copy. Mailers desiring to mail 
multiple Standard Mail (A) attachments or enclosures with their 
Periodicals copies can continue to use the current standards, which 
require paying postage at full Standard Mail (A) rates, or may choose 
to pay the Ride-Along rate for the first attachment or enclosure and 
Standard Mail (A) rates for subsequent attachments and enclosures. If 
mailers choose the latter, the Ride-Along requirements apply.
    The Ride-Along piece cannot exceed 3.3 ounces, and the weight of 
the Ride-Along piece cannot exceed the separate weight of the 
Periodicals host publication. The Ride-Along enclosure or attachment 
can be letter-size or flat-size, as long as the Ride-Along does not 
change the shape or affect the uniform thickness of the host piece. All 
pieces within a Periodicals mailing must contain the same Ride-Along 
piece. Mailers are encouraged to use common sense in the selection and 
preparation of Ride-Along pieces to ensure the proper handling and 
delivery of the mail. The Postal Service will be examining the sample 
pieces provided by mailers and will be monitoring operations to 
determine compliance with the requirements and whether any unexpected 
increases in costs are being caused as a result of Ride-Along pieces. 
The Postal Service will notify the mailer of any noncompliance with the 
requirements and will not accept future mailings of the same type. The 
Postal Service will work with the mailer to remedy noncompliance. The 
Postal Service also may determine that a change in the requirements is 
necessary because of unexpected cost increases and therefore reserves 
the right to amend these standards during the course of the experiment.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to Domestic Mail Manual G094, which are 
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, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.


    2. Add the following sections to the Domestic Mail Manual as 
follows:
DOMESTIC MAIL MANUAL
* * * * *
G  GENERAL INFORMATION
    [Add new G090 to read as follows:]
G090  Experimental Classifications and Rates

    [Add new G094 to read as follows:]

G094  Ride-Along Rate for Periodicals

1.0  BASIC ELIGIBILITY

1.1  Description

    The standards in G094 apply to Standard Mail (A) material paid at 
the experimental Periodicals Ride-Along rate that is attached to or 
enclosed with Periodicals mail. All Periodicals subclasses (Regular, 
Science of Agriculture, Nonprofit, Classroom, and In-County) are 
eligible to use the experimental Ride-Along rate.

1.2  Basic Standards

    A limit of one Ride-Along piece may be attached to or enclosed with 
an individual copy of Periodicals mail. In addition, Ride-Along pieces 
eligible under G094 must:
    a. Be eligible to be mailed as Standard Mail (A).
    b. Not exceed any dimensions of the host publication.
    c. Not exceed 3.3 ounces or the weight of the host publication.
    d. Not obscure the title of the publication or the address label.


    Note: If more than one Ride-Along type piece is attached or 
enclosed, mailers have the option of paying Standard Mail (A) 
postage for all the enclosures or attachments, or paying the Ride-
Along rate for the first attachment or enclosure and Standard Mail 
(A) rates for subsequent attachments and enclosures.

1.3  Physical Characteristics

    The host Periodicals piece and the Ride-Along piece must meet the 
following physical characteristics where applicable:
    a. The Ride-Along piece contained within a publication (bound or 
unbound) must be securely affixed in a manner that prevents detachment 
during postal processing. A loose Ride-Along enclosure with a bound 
publication must be enclosed in a full wrapper, polybag, or envelope 
with the publication. A loose Ride-Along enclosure with an unbound 
publication must be combined with and inserted within the publication. 
If the Ride-Along piece is included outside the unbound publication, 
the publication and the Ride-Along piece must be enclosed in a full 
wrapper, poly bag, or envelope.
    b. A Periodicals piece (automation and nonautomation) with the 
addition of a Ride-Along piece must meet the standards for uniformity 
(C820.7), and maintain the same shape, processing category (flat or 
letter) as it had before the addition of the Ride-Along attachment or 
enclosure.
    c. A Periodicals piece with a Ride-Along piece that claims 
automation discounts must maintain the same processing category 
(automation letter, FSM 881 flat, or FSM 1000 flat) and automation-
compatibility (C810 and C820), as applicable, as it had before the 
addition of the Ride-Along attachment or enclosure. For example:
    (1) If, due to the inclusion of a Ride-Along piece, an FSM 881 
compatible host piece can no longer be processed on the FSM 881, but 
must be processed on an FSM 1000, that piece must pay either the 
appropriate Periodicals nonautomation rate plus the Ride-Along rate or 
the appropriate Periodicals automation rate for the host piece and

[[Page 7290]]

the appropriate Standard Mail (A) rate for the attachment or enclosure.
    (2) If, due to the inclusion of a Ride-Along piece, an FSM 1000 
compatible host piece can no longer be processed on the FSM 1000, but 
must be processed manually, that piece must pay either the appropriate 
Periodicals nonautomation rate plus the Ride-Along rate or the 
appropriate Periodicals nonautomation rate for the host piece and the 
appropriate Standard Mail (A) rate for the attachment or enclosure.
    (3) If, due to the inclusion of a Ride-Along piece, an automation 
letter host piece can no longer be processed as an automation letter, 
that piece must pay the appropriate Periodicals nonautomation rate plus 
the Ride-Along rate or the appropriate Periodicals nonautomation rate 
for the host piece and the appropriate Standard Mail (A) rate for the 
attachment or enclosure.

1.4  Marking and Endorsements

    The endorsement ``Ride-Along Enclosed'' must be placed on or in the 
host publication if it contains an enclosure or attachment paid at the 
Ride-Along rate. If placed on the outer wrapper, polybag, envelope, or 
cover of the host publication, the marking must be set in type no 
smaller than any used in the required ``POSTMASTER: Send change of 
address * * *'' statement. If placed in the identification statement, 
the marking must meet the applicable standards. The marking must not be 
on or in copies not accompanied by a Ride-Along attachment or 
enclosure.
2.0  RATES
    Each piece mailed under the standards in G094 receives a $0.10 per 
copy rate in addition to the postage for the Periodicals host piece.
3.0  MAILER REQUIREMENT
    When mailing Ride-Along attachments or enclosures, publishers must 
submit the following:
    a. Two copies of the applicable alternative Postage Statement (Form 
3541-RX, 3541-NX, or 3541-NCX). Different Ride-Along pieces are 
considered separate mailings and must have different postage 
statements.
    b. A sample of the Periodicals publication with the Ride-Along 
attachment or enclosure, in addition to the current required marked 
copy, if applicable.
    c. A completed data collection questionnaire.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-3298 Filed 2-11-00; 8:45 am]
BILLING CODE 7710-12-U