[Federal Register Volume 65, Number 40 (Tuesday, February 29, 2000)]
[Proposed Rules]
[Pages 10735-10759]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4535]


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POSTAL SERVICE

39 CFR Part 111


Proposed Domestic Mail Manual Changes for Sacking and Palletizing 
Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-
Class Flats, and for Labeling Pallets

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service is proposing, for flat-size First-Class 
Mail and Standard Mail (A) and nonletter-size Periodicals, to allow 
mailers to combine packages of automation rate mail and packages of 
Presorted rate mail in the same sack or tray if mailers can provide 
appropriate presort and rate documentation and use presort accuracy 
validation and evaluation (PAVE)-certified presort software to prepare 
the

[[Page 10736]]

mailing. This co-sacking and co-traying of packages in automation rate 
and Presorted rate mailings will be permitted at all sack and tray 
presort levels (5-digit, 3-digit, SCF (Periodicals only), ADC, and 
Mixed ADC). The Postal Service is also proposing to revise the 
requirements for preparation of 5-digit pallets to require carrier 
route rate mail to be placed on separate 5-digit pallets from 5-digit 
non-carrier route rate mail (automation rate and Presorted rate mail). 
This means that when preparing 5-digit pallets, mailers will be 
required to make 5-digit pallets that contain only carrier route sorted 
mail, and 5-digit pallets that contain both automation rate and 
Presorted rate mail, except as proposed under the following new 
preparation option. It is proposed to allow mailers of nonletter-size 
Periodicals and flat-size Standard Mail (A) to combine carrier route, 
automation rate, and Presorted rate packages that are part of the same 
mailing job in the same 5-digit carrier routes sack (to be named a 
``merged 5-digit'' sack) or on the same 5-digit pallet (to be named a 
``merged 5-digit'' pallet) for those 5-digit ZIP Codes where the Postal 
Service performs carrier route incoming secondary sortation at the 
delivery unit. The carrier route rate sortation indicator field in the 
Postal Service's City State Product will be modified to contain 
information that will identify the 5-digit ZIP Codes where such 
combinations will be permitted. This field in the City State Product 
will be renamed the ``Carrier Route Indicators'' field. It is also 
proposed to allow packages in the same mailing job that are 
independently presorted as carrier route, automation, and Presorted 
rate mailings to be sorted together at the 5-digit level, in both sacks 
and on pallets, using both the Carrier Route Indicators field in the 
City State Product and the Domestic Mail Manual (DMM) L001 labeling 
list to prepare ``merged 5-digit scheme'' sacks or pallets according to 
additional sortation rules. It is also proposed to revise pallet 
labeling requirements.

DATES: Comments must be received on or before April 14, 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 20260-2413. Copies of all written comments 
will be available for inspection and photocopying between 9 a.m. and 4 
p.m., Monday through Friday at the Postal Service Library, 475 L'Enfant 
Plaza SW, Room 11-N, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Lynn Martin, (202) 268-6351, or Linda 
Kingsley, (202) 268-2252.

SUPPLEMENTARY INFORMATION: Over the past year, there have been various 
discussions between the Postal Service and the mailing industry 
regarding the implications of existing DMM standards that require 
packages of automation rate flats and packages of nonautomation rate 
(carrier route rate and Presorted rate) flats to be prepared in 
separate containers. Typically, the smallest portion of the mailing is 
relegated to a container level of a lesser depth of presort, which can 
cause inconsistencies in delivery as well as more package and/or 
container handlings and greater demands on mail transport equipment. 
Two Mailers Technical Advisory Committee (MTAC) Work Groups, the 
National Periodicals Service Improvement Team, and the Presort 
Optimization Work Group, have been working to better understand the 
implications and identify opportunities to improve the current 
situation. As a result, these MTAC Work Groups have identified 
preparation changes that should help to improve service. Likewise, it 
is expected these changes, which were also recommended in the Report of 
the Periodicals Operations Review Team, should help reduce processing 
costs. That team, which is comprised of postal and industry 
representatives, visited many postal facilities in order to better 
understand the factors contributing to USPS processing costs.
    In short, the proposed changes contained in this Federal Register 
notice have been drafted based on significant feedback from the 
industry as well as USPS field sites. The specific changes are 
described in detail below.

Option To Combine Packages of Automation Rate and Presorted Rate 
Mail in the Same Sack or Tray for First-Class Mail and Standard 
Mail (A) Flats and Nonletter-Size Periodicals

    Although Periodicals mailers already have the option to co-sack 
packages of automation rate flats and Presorted rate nonletter mail in 
the same 3-digit, SCF, ADC, or Mixed ADC sack, they cannot combine 
packages of automation rate flats and Presorted rate nonletter mail in 
the same 5-digit sack. For First-Class and Standard Mail (A), packages 
of automation rate and Presorted rate flats currently must be prepared 
in separate sacks or trays at all presort levels.
    Analyses of automation rate and Presorted rate mailings show that 
it is common for packages of Presorted rate flats to reside in sacks or 
trays that are of a lesser depth of sort than the corresponding 
containers of automation rate flats. Many customers have indicated that 
most of their mailings contain some small number of addresses that 
cannot be ZIP+4 barcoded. Currently, these pieces must be both 
separately packaged and separately sacked or trayed as a Presorted rate 
mailing that must meet its own sack or tray minimums. Because of the 
small number of pieces generally contained in the Presorted rate 
mailing, the density of pieces presorted to 5-digit and 3-digit ZIP 
Codes may be small and the resulting packages and sacks or trays for 5-
digit and 3-digit presort levels may be few. For Periodicals and 
Standard Mail (A) this situation has rate impacts because Presorted 
rates are based on the sack in which the pieces reside.
    With the recent optical character reader (OCR) technology that has 
been deployed on the Postal Service's flat-sorting machines (FSM) 881s, 
there is less of a need for segregation of automation rate and 
Presorted rate packages. OCR technology will also be incorporated in 
the new automated flat-sorting machines (AFSM) 100s that the Postal 
Service will begin deploying this year. The Postal Service therefore 
seeks to resolve the current situation where the requirement to 
separately sack packages of automation rate flat mail from packages of 
Presorted rate flat mail results in less finely presorted mail by 
allowing packages of automation rate flats and Presorted rate flats 
(and for Periodicals irregular parcels) to be presorted together in the 
same sack or tray at all container levels.
    It is expected that this change will help improve service on the 
packages of Presorted rate mail and will also reduce mail transport 
equipment (MTE) usage because mailers will no longer have to prepare 
their packages of automation rate flats and packages of Presorted rate 
flats (or irregular parcels for Periodicals mail) in separate 
containers.
    This new presort option, which will appear in DMM M710, will be a 
co-sacking or co-traying presort option. This means that each separate 
automation and Presorted rate mailing that is co-sacked or co-trayed 
must continue to meet all the separate eligibility requirements for 
their respective mailing, including separate packaging requirements, 
and for First-Class Mail and Standard Mail (A), separate minimum 
mailing quantity requirements. For example, under this proposed new 
option, when co-sacking a Standard Mail (A) automation rate mailing 
with a Presorted rate mailing the automation rate mailing would be 
required to meet a 200-piece or 50-pound minimum mailing quantity

[[Page 10737]]

requirement and the Presorted rate portion would be required to meet a 
separate 200-piece or 50-pound minimum mailing requirement (the 
residual volume requirement in DMM E620.1.2 may be used to meet this). 
Under this example the automation rate pieces would be required to be 
packaged under the requirements in DMM M820, and the Presorted rate 
pieces would be required to be separately packaged under the standards 
in DMM M610. These separately prepared packages from the two separate 
Standard Mail (A) mailings could then be sacked together (co-sacked) in 
the same 5-digit, 3-digit, ADC, and Mixed ADC sacks.
    Another requirement for co-sacking or co-traying will be that the 
two separate mailings must be part of the same mailing job, and for 
First-Class Mail and Standard Mail (A), be reported on the same postage 
statement or, for Standard Mail (A), the same consolidated postage 
statement. In addition, for all mail classes, PAVE-certified software 
or MAC-certified software must be used to presort the co-sacked or co-
trayed mailing.
    Use of the co-sacking or co-traying option will not affect the rate 
eligibility criteria for automation or Presorted rates. Pieces in 
automation rate packages will continue to qualify for automation rates 
based on the presort level of the package in which they are placed. For 
Presorted First-Class rates, there is only one rate level so co-traying 
will have no effect on rate applicability. Pieces in Presorted rate 
packages at Periodicals and Standard Mail (A) rates will continue to 
qualify for Presorted rates based on the presort level of the sack in 
which the pieces are placed. (For Periodicals mail there must also be a 
minimum of six pieces in a package within a qualifying sack to qualify 
for 5-digit or 3-digit Presorted rates.) However, pieces in automation 
rate packages that reside in the same sack as Presorted rate packages 
will count toward the minimum sacking requirements for purposes of 
qualifying for Periodicals and Standard Mail (A) Presorted rates. 
Mailers of all classes must provide documentation that details the 
sortation and rate eligibility of pieces in each tray or sack.
    For First-Class Mail and Standard Mail (A), this co-sacking or co-
traying option will be available only when the physical dimensions of 
the mailpieces are in the flats processing category at both the 
automation and Presorted rates. For example, a mailpiece that exceeds 
\3/4\ of an inch could be considered an automation flat under the FSM 
1000 size requirements in DMM C820, but would be considered a parcel at 
the Presorted rates under DMM C050.3.1. In such an instance, for First-
Class Mail and Standard Mail (A), separate sacking of the Presorted 
portion of the mailing job as a First-Class Mail parcel or Standard 
Mail (A) machinable or irregular parcel would be required whereas the 
automation flats portion would be required to be trayed for First-Class 
Mail or sacked for Standard Mail (A) according to the automation flats 
requirements. If such pieces were mailed at Standard Mail (A) rates, 
the residual shape surcharge (RSS) would apply to the Presorted rate 
portion of the mailing job. For Periodicals, pieces in the automation 
mailing must meet the physical standards for an automation flat and 
pieces in the Presorted rate mailing must be nonletter-size. Specific 
authorization from the rates and classification service center (RCSC) 
will not be required to co-sack or co-tray flat-size mailings under 
these new standards in DMM M710. However, as indicated above, mailers 
who co-sack or co-tray packages of automation rate and Presorted rate 
flats in the same sack or tray under DMM M710 will be required to use 
PAVE-certified software or MAC-certified to prepare the mailing.

Requirement To Segregate Carrier Route Packages From 5-Digit 
Packages on 5-Digit Pallets

    In the process of developing these proposed DMM changes, USPS field 
operations personnel were canvassed for input regarding the proposal to 
combine packages of automation rate and Presorted rate flats in the 
same container. Many USPS field sites expressed a strong desire to have 
carrier route packages segregated from 5-digit packages (both 
automation rate and Presorted rate 5-digit packages) due to the planned 
deployment of new flat-sorting machines. This segregation already 
occurs today for mailings prepared in sacks, because carrier route rate 
packages are currently required to be prepared as a separate mailing 
and sacked separately from other mail in a mailing job. However, for 
packages on pallets, 5-digit Presorted rate flats may currently be 
placed with carrier route packages on the same 5-digit pallet or same 
5-digit scheme pallet.
    In today's mail processing environment, where in many instances 
there is limited flat sorter capacity at the plant, the Postal Service 
sorts the majority of non-carrier-route-sorted flats to carrier routes 
at delivery units. This year, the Postal Service will begin deploying 
new Automated Flat Sorting Machine (AFSM) 100s. As a result of the 
deployment of these additional flat-sorting machines over the next 2 to 
3 years, the sortation of Presorted rate mail to carrier routes by the 
Postal Service will more frequently be done on flat-sorting machines 
located at plants rather than at delivery units. In the future, it will 
generally no longer be economical to the Postal Service to allow 
mailers to combine 5-digit sorted Presorted rate mail (which must be 
sorted by the Postal Service to carrier routes) on the same 5-digit 
pallet as mail that has already been sorted to carrier routes by the 
mailer.
    Due to the anticipated changes in the location where the majority 
of Presorted rate mail will be sorted to carrier routes, the Postal 
Service is proposing to require the segregation of carrier route sorted 
flats from non-carrier route sorted flats on 5-digit and 5-digit scheme 
pallets. When preparing 5-digit and 5-digit scheme pallets, it is 
proposed that mailers be required to make 5-digit and 5-digit scheme 
pallets that contain only carrier route sorted mail (to be named 5-
digit carrier routes pallets and 5-digit scheme carrier routes 
pallets), and separate 5-digit and 5-digit scheme pallets that contain 
only automation rate and Presorted rate mail. There will be one 
exception as provided below. This proposal should greatly reduce any 
mail volume that would have to be sent from the delivery unit back to 
the plant for sortation to carrier route when new flat-sorting 
equipment is deployed.
    Periodicals and Standard Mail (A) mailers that prepare letter-size 
mail in trays on pallets or prepare nonletter-size mail as sacks on 
pallets, also will be required to place trays and sacks of carrier 
route mail on 5-digit carrier routes pallets that are separate from 5-
digit pallets containing non-carrier route mail.

Optional Presort Using the ``Carrier Route Indicators'' Field in 
the AMS City State Product

    Because the transition from carrier route sortation being performed 
primarily at delivery units to being performed primarily at plants will 
occur gradually as AFSM 100s are deployed, the Postal Service is 
proposing to provide a new presort option for Periodicals nonletters 
and Standard Mail (A) flats that are sacked or prepared as packages on 
pallets. This new presort option should ease the transition and lessen 
the impact on mailers of the proposed new requirement to prepare 
separate 5-digit carrier routes and 5-digit scheme carrier routes 
pallets that contain only carrier route packages. As noted earlier, for 
many 5-digit ZIP Code areas, the incoming secondary sortation 
(sortation to carrier routes) will be moved from the

[[Page 10738]]

delivery unit to the plant only when an AFSM 100 is deployed at the 
plant serving that 5-digit ZIP Code area. It is when sortation to 
carrier route occurs at the plant for a given 5-digit ZIP Code area 
that the mailer preparation of carrier route presorted packages of 
flats in separate containers from non-carrier route sorted 5-digit 
packages of flats will become necessary at the 5-digit pallet and sack 
level. The Postal Service therefore intends to modify the current 
carrier route rate sortation indicator field in the AMS City State 
Product so that it will indicate for each 5-digit ZIP Code area whether 
it is necessary to separately containerize carrier route sorted flats 
from non-carrier route sorted flats, as well as indicate for which 5-
digit ZIP Codes letter-size automation carrier route sortation may take 
place. This field in the City State Product will be renamed the 
``Carrier Route Indicators'' field. The new information will be 
provided by changing the current ``Yes'' or ``No'' character in the 
field to an ``A,'' ``B,'' ``C,'' or ``D.'' An ``A'' will indicate 
sortation for automation letters carrier routes rates is permitted and 
that co-containerization of flat-size (nonletter-size for Periodicals) 
carrier route and 5-digit packages is also permitted. A ``B'' will 
indicate sortation for automation letters carrier routes rates is 
permitted and that co-containerization of flat-size (nonletter-size for 
Periodicals) carrier route and 5-digit packages is not permitted. A 
``C'' will indicate sortation for automation letters carrier routes 
rates is not permitted and that co-containerization of flat-size 
(nonletter-size for Periodicals) carrier route and 5-digit packages is 
permitted. A ``D'' will indicate sortation for automation letters 
carrier routes rates is not permitted and that co-containerization of 
flat-size (nonletter-size for Periodicals) carrier route and 5-digit 
packages is not permitted. This means that for 5-digit ZIP Codes with 
an ``A'' or a ``C'' indicator in the City State Product the Postal 
Service performs incoming secondary at the delivery unit and separate 
containerization of carrier route packages from 5-digit packages is not 
required.
    For those 5-digit ZIP Codes where the City State Product indicates 
by an ``A'' or a ``C'' in the Carrier Route Indicators field that 
segregation of carrier route flats is not required, it is proposed to 
provide mailers with the option to co-sack or copalletize carrier route 
packages with automation rate 5-digit packages and Presorted rate 5-
digit packages. This new optional presort method will be contained in 
DMM M720. Five-digit pallets prepared under this option will be named 
``merged 5-digit'' pallets, and 5-digit scheme pallets prepared under 
this option will be named ``merged 5-digit scheme'' pallets. For sacked 
mailings, the new sack levels that may contain carrier route packages, 
automation rate 5-digit packages, and Presorted rate 5-digit packages 
for the same 5-digit ZIP Code when permitted by the Carrier Route 
Indicators field will be named ``merged 5-digit'' sacks and ``merged 5-
digit scheme'' sacks. Although this preparation option is designed 
primarily for flat-sized mail, all nonletter-size Periodicals will be 
permitted to use this optional sortation method. Mailers must use PAVE-
certified or MAC-certified software to sort according to this option.
    As the number of AFSM 100s deployed to the field increases, it is 
expected that there also will be an increase in the number of 5-digit 
ZIP Codes where the segregation of carrier route packages from 5-digit 
packages is required. It is expected that the information in the 
Carrier Route Indicators field in the City State Product will be 
dynamic and subject to change as the AFSM 100s are being deployed. 
Accordingly, mailers who utilize the Carrier Route Indicators field in 
the City State Product to sort their mail under new DMM 720 must enter 
the mailing no later than 90 days after the release date of the City 
State Product used to obtain the Carrier Route Indicators information 
for the mailing.
    Mailers who sack will first prepare direct carrier route sacks 
containing a minimum of 24 pieces for Periodicals or a minimum of 125 
pieces or 15 pounds of mail for Standard Mail (A). After preparing 
direct carrier route sacks, mailers will prepare merged 5-digit sacks 
in which carrier route packages, automation rate 5-digit packages, and 
Presorted rate 5-digit packages may be placed in the same sack for each 
5-digit ZIP Code with an ``A'' or a ``C'' indicator in the City State 
Product that permits such co-sacking. The merged 5-digit sacks will 
have a sacking minimum of either one qualifying carrier route package 
or, when there are no carrier route packages for a particular 5-digit 
ZIP Code in a mailing, of 125 pieces or 15 pounds of mail for Standard 
Mail (A) and of 24 pieces (required) or one package (optional) for 
Periodicals mail. A merged 5-digit sack will be required to be prepared 
when there is at least one carrier route package for the 5-digit ZIP 
Code. Presorted rate 5-digit packages in merged 5-digit sacks will be 
eligible for \3/5\ Presorted Standard Mail (A) rates and 5-digit 
Periodicals rates (for packages of 6 or more pieces). After preparing 
merged 5-digit sacks, mailers must prepare remaining carrier route 
packages in 5-digit carrier routes sacks. Any remaining 5-digit 
packages must be sacked in 5-digit, 3-digit, ADC, or Mixed ADC sacks as 
applicable under new DMM M710 in which automation and Presorted 
packages may be sacked together.
    For mailings prepared as packages and/or bundles on pallets, the 
first level of pallet to be prepared would be merged 5-digit pallets. 
Merged 5-digit pallets will contain carrier route packages, automation 
rate 5-digit packages, and Presorted rate 5-digit packages for each 5-
digit ZIP Code with an ``A'' or a ``C'' indicator in the City State 
Product that permits combination of such packages. For 5-digit ZIP 
Codes where the indicator in the City State Product prohibits combining 
carrier route packages with 5-digit packages (a ``B'' or a ``D'' 
indicator), mailers must, where possible under current minimum weight 
standards, prepare 5-digit carrier routes pallets that contain only 
carrier route packages and separately prepare 5-digit pallets that 
contain both automation rate and Presorted rate 5-digit packages. The 
current pallet minimums and maximums and other physical preparation 
requirements will apply. The remainder of the palletized mailing would 
be prepared according to current preparation requirements for Standard 
Mail (A) or Periodicals, as applicable.
    This option to combine all types of packages of Standard Mail (A) 
flats and Periodicals nonletters into one merged 5-digit pallet or sack 
should help reduce container handlings for mailers and the Postal 
Service.

Use of the New ``Carrier Route Indicators'' Field With 5-Digit 
Scheme Sortation Using DMM L001

    The Postal Service is also proposing to permit mailers to sort 
Periodicals nonletters and Standard Mail (A) flats using both the 
Carrier Route Indicators field of the City State Product as described 
above and DMM labeling list L001 for preparing scheme sortations. This 
option will be available for Periodicals nonletters and Standard Mail 
(A) flats prepared either in sacks or as packages and/or bundles on 
pallets.
    Under this option, carrier route packages for all 5-digit ZIP Codes 
in an L001 scheme may be combined on a merged 5-digit scheme pallet or 
in a merged 5-digit scheme sack along with 5-digit packages of 
automation rate and 5-digit packages of Presorted rate mail for those 
5-digit ZIP Codes in the scheme that also have an ``A'' or ``C'' 
indicator in the City State Product that

[[Page 10739]]

allows all three types of packages to be placed in the same 5-digit 
level container. For sacked mail, such a merged 5-digit scheme sack may 
be prepared only after all direct carrier route sacks have been 
prepared.
    In some instances there may be 5-digit ZIP Codes that are part of a 
scheme but have an indicator in the City State File that does not allow 
merging carrier route and 5-digit packages in the same container. Five-
digit packages for the 5-digit ZIP Codes in a scheme that have such a 
negative indicator in the City State Product must not be placed in a 
merged 5-digit scheme sack or pallet.
    The sortation for these 5-digit packages of automation and 
Presorted rate mail that are part of an L001 scheme, but cannot be 
placed on a merged 5-digit scheme pallet, will be different for 
palletized mail than for sacked mail. This is because for sacks, 5-
digit scheme sort applies only to carrier route packages, whereas for 
pallets, 5-digit scheme sort applies to both carrier route packages and 
to 5-digit packages.
    For palletized mail 5-digit packages of automation rate and 
Presorted rate mail for those 5-digit ZIP Codes in a scheme that have 
an indicator in the City State Product that does not permit merging 
carrier route and 5-digit packages in the same container may be placed 
together on a 5-digit scheme pallet (that does not contain carrier 
route packages).
    For sacked mail 5-digit packages of automation rate and Presorted 
rate mail for those 5-digit ZIP Codes in a scheme that have an 
indicator in the City State Product that does not permit merging 
carrier route and 5-digit packages in the same container must be 
prepared in separate 5-digit sacks (not a scheme sack) using the 
provisions of new DMM M710 described earlier. That is, for each 5-digit 
ZIP Code in the scheme with a negative (``B'' or ``D'') indicator in 
the City State Product, prepare a separate 5-digit sack(s) that 
contains both automation rate 5-digit packages and Presorted rate 5-
digit packages.
    Use the following scenario as an example. There is an L001 scheme 
that contains ZIP Codes 30034, 30035, 30036, and 30037. ZIP Codes 30036 
and 30037 have an ``A'' or ``C'' indicator in the Carrier Route 
Indicators field of the City State Product that allows carrier route 
packages to be sorted to the same 5-digit container as automation and 
Presorted rate packages. ZIP Codes 30034 and 30035 of the L001 scheme 
however, have an indicator that carrier route packages must not be 
combined with 5-digit packages of automation rate and Presorted rate 
mail. To illustrate:

----------------------------------------------------------------------------------------------------------------
                                              ``A'' or ``C''
   L001 scheme ZIP       Package types      indicator allowing
        codes                               merged sortation?
---------------------------------------------------------------
30034...............  CR-RT..............  5D Automation......  5D Presorted......  No
30035...............  CR-RT..............  5D Automation......  5D Presorted......  No
30036...............  CR-RT..............  5D Automation......  5D Presorted......  Yes
30037...............  CR-RT..............  5D Automation......  5D Presorted......  Yes
----------------------------------------------------------------------------------------------------------------

    When preparing pallets to this L001 scheme using the Carrier Route 
Indicators field in the City State Product, two pallets would be 
prepared as follows (assuming there were sufficient packages to meet 
minimum pallet weights).
    (1) A merged 5-digit scheme pallet that contains the carrier route 
packages from all four 5-digit ZIP Codes in the L001 scheme, as well as 
the automation rate 5-digit packages and the Presorted rate 5-digit 
packages for ZIP Codes 30036 and 30037 (because the City State Product 
indicates for ZIP Codes 30036 and 30037 that carrier route packages and 
5-digit packages of automation rate and Presorted rate mail may be 
merged in the same container).
    (2) A 5-digit scheme pallet that contains the automation rate 5-
digit packages and the Presorted rate 5-digit packages for ZIP Codes 
30034 and 30035 (because the City State Product does not permit merging 
carrier route packages and 5-digit packages in the same container for 
these ZIP Codes).
    Because for sacked mail an L001 scheme sort may be performed for 
only carrier route mail, sacking mail to this L001 scheme using the 
City State Product would result in the following three types of sacks 
(assuming there were sufficient packages to meet minimum sacking 
requirements).
    (1) A merged 5-digit scheme sack that contains the carrier route 
packages from all four 5-digit ZIP Codes in the L001 scheme, as well as 
the automation rate 5-digit and Presorted rate 5-digit packages for ZIP 
Codes 30036 and 30037 (because the City State Product indicates for 
30036 and 30037 that carrier route packages and 5-digit packages of 
automation rate and Presorted rate mail may be merged in the same 
container).
    (2) One 5-digit sack for ZIP Code 30034 for which the City State 
Product indicates merging of carrier route packages with 5-digit 
packages is not permitted that contains both the automation rate and 
Presorted rate 5-digit packages for 30034.
    (3) One 5-digit sack for ZIP Code 30035 for which the City State 
Product indicates merging of carrier route packages with 5-digit 
packages is not permitted that contains both the automation rate and 
Presorted rate 5-digit packages for 30035.
    If the City State Product indicates that none of the 5-digit ZIP 
Codes in an L001 scheme are permitted to merge carrier route packages 
with 5-digit packages, mailers would prepare containers as follows. For 
palletized mail two pallets would be prepared: a merged 5-digit scheme 
pallet containing carrier route packages for the scheme and a 5-digit 
scheme pallet containing the 5-digit packages of automation rate and 
Presorted rate mail for the scheme. For sacked mail a merged 5-digit 
scheme sack(s) would be prepared that contained the carrier route 
packages for all of the 5-digit ZIP Codes in the scheme. The automation 
rate 5-digit packages and the Presorted rate 5-digit packages would be 
co-sacked in 5-digit sacks (a separate 5-digit sack(s) for each 5-digit 
ZIP Code in the scheme would be prepared).
    If a 5-digit ZIP Code is not part of a scheme mail would be 
palletized or sacked as described earlier for mail that is not prepared 
with scheme sortation.
    It is expected that the standards permitting mailers to prepare 5-
digit level pallets or sacks using both the Carrier Route Indicators 
field of the City State Product and DMM labeling list L001 for 
preparing scheme sortations as described above also will help reduce 
the number of containers prepared by mailers and correspondingly reduce 
the number of containers handled by the Postal Service.

Other Domestic Mail Manual Revisions

    The provisions in this proposed rule necessitated revisions to 
pallet labeling requirements for certain pallet levels. In addition, 
the Postal Service is proposing to revise pallet labels for all mail 
with the exception of the following Parcel Post mailings: BMC Presort, 
OBMC

[[Page 10740]]

Presort, and Parcel Select DSCF and DDU rate mail. These pallet label 
revisions will eliminate conflicts between current M031 and M045 
requirements, and will clarify the label requirements for each pallet 
level under each type of pallet preparation. The proposed revisions 
will: (1) Show the pallet sortation level abbreviation on pallets 
(except for pallets containing carrier route packages that are sorted 
to the 5-digit level); (2) require ``CARRIER ROUTES'' to be shown only 
on labels for 5-digit or 5-digit scheme level pallets that contain any 
carrier route mail; (3) split the ``DDU/SCF'' designation into separate 
``DDU'' and ``DSCF'' designations and permit these designations to be 
shown only on 3-digit and SCF pallet labels; and (4) add a requirement 
to show ``NONBARCODED'' or ``NBC'' on pallet labels for pallets 
containing Presorted rate mail (except for the new ``merged'' 5-digit 
pallet levels).
    An option is also added to M031 for mailers to add information to 
pallet labels for pallets containing packages and bundles that shows 
the number of packages for each package sortation and rate level that 
is on the pallet (the number of carrier route packages, the number of 
5-digit, 3-digit, and ADC automation rate packages, and the number of 
5-digit, 3-digit, and ADC Presorted rate packages on each pallet). This 
information will assist the Postal Service in processing the mail on 
these pallets.
    This proposal also reorganizes the pallet presort and labeling 
standards in M045.4.0 to show separate pallet preparation and label 
requirements for packages, bundles, sacks, or trays on pallets at 
Periodicals, Standard Mail (A), and Bound Printed Matter rates, and to 
show separate labeling requirements for pallets containing Standard 
Mail Machinable Parcels, Special Standard Mail, and Library Mail.
    The proposed implementation date for all of the changes contained 
in this proposed rule is early September 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

    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

E  Eligibility

* * * * *

E100  First-Class Mail

* * * * *

E130  Nonautomation Rates

* * * * *
3.0  PRESORTED RATE
    [Revise the heading of 3.1 to read as follows:]

3.1  All Pieces

    [Amend 3.1d to provide for preparation under M710 to read as 
follows:]
    In addition to the standards in 1.0, all pieces in a Presorted 
First-Class rate mailing must:
* * * * *
    d. Be marked, sorted, and documented as specified in M130 or, 
alternatively for flat-sized mail, under M710.
* * * * *

E140  Automation Rates

1.0  BASIC STANDARDS

1.1  All Pieces

    [Amend 1.1g to provide for preparation under M710 to read as 
follows:]
    All pieces in a First-Class Mail automation rate mailing must:
* * * * *
    g. Be marked, sorted, and documented as specified in M810 for 
letters and cards, or as specified in M710 or M820 for flats.
* * * * *
2.0  RATE APPLICATION
* * * * *

2.2  Flats

    [Amend the first sentence of 2.2 to provide for sortation under 
M710 to read as follows:]
    First-Class Mail automation rates apply to each piece that is 
sorted under M820 or under M710 into the corresponding qualifying 
groups: * * *
* * * * *

E230  Nonautomation Rates

1.0  BASIC INFORMATION

1.1  Standards

    [Amend 1.1 to provide for preparation under M710 and M720 to read 
as follows:]
    The standards for Presorted rates are in addition to the basic 
standards for Periodicals in E210, the standards for other rates or 
discounts claimed, and the applicable preparation standards in M045, 
M200, M710, M720, M810, or M820. Not all combinations of presort level, 
automation, and destination entry discounts are permitted.
* * * * *
2.0  CARRIER ROUTE RATES
* * * * *

2.2   Eligibility

    [Amend 2.2 to provide for preparation under M045 and M720 to read 
as follows:]
    Preparation to qualify eligible pieces for carrier route rates is 
optional and is subject to M045, M200, or (nonletter-size mail only) 
M720. Carrier route sort need not be done for all carrier routes in a 
5-digit area. Specific rate eligibility is subject to these standards:
    a. The basic carrier route rate applies to copies of letter-size 
mail prepared in carrier route packages of six or more pieces each that 
are sorted to carrier route, 5-digit carrier routes, or 3-digit carrier 
routes trays. The basic carrier route rate applies to copies of flat-
size or irregular parcel-size pieces prepared in carrier route packages 
of six or more pieces each and that are sorted to pallets under M045 or 
M720, or sorted to carrier route, 5-digit carrier routes, 5-digit 
scheme carrier routes or, under M720, merged 5-digit, or merged 5-digit 
scheme sacks. Preparation of 5-digit scheme carrier routes sacks or 
pallets is optional but, if performed, must be done for all 5-digit 
scheme destinations. Preparation of merged 5-digit sacks or pallets and 
merged 5-digit scheme sacks or pallets is optional but if performed 
must be done for all 5-digit ZIP Codes for which there is an indicator 
in the City State Product that permits co-containerization of carrier 
route and 5-digit packages. For merged 5-digit scheme sacks or pallets, 
preparation also must be done for all 5-digit scheme destinations.
    b. The high density and saturation rates apply to pieces that are 
eligible for the basic carrier route rate, are prepared in carrier walk 
sequence, and meet the applicable density standards in 6.0 for the rate 
claimed.

[[Page 10741]]

3.0  5-DIGIT RATES
    [Amend the first sentence of 3.0 to provide for preparation of mail 
under M045, M710 and M720 as follows:]
    Subject to M045, M200, or (nonletter-size mail only) M710 or M720, 
5-digit rates apply to: * * *
* * * * *
    b. Flat-size pieces in 5-digit packages of six or more pieces each, 
placed in 5-digit sacks, merged 5-digit sacks, or merged 5-digit scheme 
sacks or palletized under M045 or M720.
4.0  3-DIGIT RATES
    [Amend the first sentence of 4.0 and 4.0b to provide for 
preparation under M045, M710 and M720 to read as follows:]
    Subject to M045, M200, or (nonletter-size mail only) M710 or M720, 
3-digit rates apply to:
* * * * *
    b. Flat-size pieces in 5-digit and 3-digit packages of six or more 
pieces each, placed in 3-digit sacks or palletized under M045 or M720.
5.0  BASIC RATES
    [Amend 5.0 to provide for preparation of mail under M045, M710 and 
M720 to read as follows:]
    Basic rates apply to pieces prepared under M045, M200, or 
(nonletter-size mail only) M710 or M720, that are not eligible for and 
claimed at carrier route, 5-digit, or 3-digit rates.
6.0  WALK-SEQUENCE DISCOUNTS

6.1  Eligibility

    [Amend 6.1 to provide for preparation under M045 and M720 as 
follows:]
    The high density or saturation rates apply to each walk-sequenced 
piece in a carrier route mailing, eligible under 2.2 and prepared under 
M045, M200, or (nonletter-size mail only) M720, that also meets the 
corresponding addressing and density standards in 6.4. High density and 
saturation rate mailings must be prepared in carrier walk sequence 
according to schemes prescribed by the USPS (see M050).
* * * * *

E240   Automation Rates

1.0  BASIC STANDARDS

1.1  All Pieces

    [Amend 1.1f to provide for preparation under M045, M710 and M720 as 
follows:]
    All pieces in an automation Periodicals mailing must:
* * * * *
    f. Be marked, sorted, and documented as specified in M045, or M710 
or M720 (nonletter-size mail), or M810 (letters) or M820 (flats).
* * * * *
2.0  RATE APPLICATION

2.1  5-Digit Rates

    [Amend the first sentence of 2.1 and 2.1b to provide for 
preparation of flats under M710 and M720 to read as follows:]
    Subject to M045, M710, M720, M810, or M820, 5-digit automation 
rates apply to:
* * * * *
    b. Flats. 5-digit rates apply to pieces in 5-digit packages of six 
or more pieces each, prepared under M045, M710, M720, or M820.

2.2  3-Digit Rates

    [Amend the first sentence of 2.2 and 2.2b to provide for 
preparation of flats under M710 and M720 to read as follows:]
    Subject to M045, M710, M720, M810, or M820, 3-digit automation 
rates apply to:
* * * * *
    b. Flats. 3-digit rates apply to pieces in 3-digit packages of six 
or more pieces each, prepared under M045, M710, M720, or M820.

2.3  Basic Rates

    [Amend 2.3 to provide for preparation of flats under M710 and M720 
to read as follows:]
    Subject to M045, M710, M720, M810, or M820, basic automation rates 
apply to:
* * * * *
    b. Flats. Basic rates apply to pieces prepared under M045, M710, 
M720, or M820 that are not claimed at 5-digit or 3-digit rates.

E250  Destination Entry

* * * * *
2.0  DDU RATE

2.1  Eligibility

    [Amend 2.1 to provide for preparation under M720 to read as 
follows:]
    The destination delivery unit (DDU) rate applies to pieces entered 
at the facility where the carrier cases mail for the carrier route 
serving the delivery address on the mailpiece. Letter-size copies 
claimed at DDU rates must be part of a carrier route package placed in 
a carrier route tray or a 5-digit carrier routes tray, prepared under 
M200, and otherwise eligible for and claimed at a carrier route rate. 
Flat-size or irregular parcel-size copies claimed at DDU rates must be 
part of a carrier route package placed in a carrier route sack; a 5-
digit carrier routes sack, a 5-digit scheme carrier routes sack, a 
merged 5-digit sack, or a merged 5-digit scheme sack prepared under 
M200 or M720, or palletized under M045 or M720, and otherwise eligible 
for and claimed at a carrier route rate. Except for the standards for 
preparing basic carrier route or walk-sequence carrier route rate mail, 
there is no additional minimum volume required for a DDU rate mailing.
* * * * *

E620  Nonautomation Standard Mail (A) Rates

1.0  PRESORTED REGULAR AND NONPROFIT RATES

1.1  Basic Standards

    [Amend 1.1d to provide for preparation of flat-sized mail under 
M710 and M720 as follows:]
    All pieces in a Presorted Regular or Presorted Nonprofit Standard 
Mail (A) mailing must:
* * * * *
    d. Be marked, sorted and documented as specified in M045, M610, or, 
(flat-sized mail only) under M710 or M720.
* * * * *

1.5  Presorted Rates

    [Amend the first sentence of 1.5 to provide for preparation of 
flat-sized mail under M710 and M720. Redesignate 1.5d through g as 1.5e 
through h, respectively. Add new 1.5d and revise redesignated 1.5e to 
read as follows:]
    Presorted Regular or Nonprofit Standard Mail (A) rates apply to 
Regular or Nonprofit Standard Mail letters, flats, and machinable and 
irregular parcels weighing less than 16 ounces that are prepared under 
M045, M610, or (flat-sized mail only) under M710 or M720. Basic 
Presorted rates apply to pieces that do not meet the standards for the 
\3/5\ Presorted rates described below. Basic rate and \3/5\ rate pieces 
prepared as part of the same mailing are subject to a single minimum 
volume standard. Pieces that do not qualify for the \3/5\ rate must be 
paid at the basic rate and prepared accordingly. Pieces may qualify for 
the \3/5\ rate if they are presented:
* * * * *
    d. In a 5-digit package of 10 or more flat-size pieces that is part 
of a group of packages sorted to a merged 5-digit sack(s) or merged 5-
digit scheme sack(s) destination that contains either at least one 
qualifying carrier route package of 10 or more pieces, or contains at 
least 125 pieces or 15 pounds of pieces prepared in 5-digit packages 
(both automation and nonautomation 5-digit

[[Page 10742]]

packages count toward the 125-piece or 15-pound sack minimum).
    e. In a 5-digit or 3-digit package of 10 or more flat-sized pieces 
palletized under M045 or M720.
* * * * *
2.0  ENHANCED CARRIER ROUTE RATES

2.1  General

    [Amend 2.1c to provide for preparation of carrier route packages 
under M720 to read as follows:]
    All pieces in an Enhanced Carrier Route Standard Mail mailing 
(letters, flats, or, if merchandise samples distributed with detached 
address labels, irregular parcels) must:
* * * * *
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized), M620, or (flats only) M720.
* * * * *

2.8  Basic Rates

    [Amend 2.8 to provide for preparation of flat-sized mail under M045 
and M720 to read as follows:]
    Basic (nonautomation) carrier route rates apply to each piece that 
is sorted under M045 (pallets), M620, or (flats only) M720, into the 
corresponding qualifying groups:
* * * * *
    b. Flat-size pieces in a carrier route package of 10 or more pieces 
palletized under M045, or placed in a carrier route sack containing at 
least 125 pieces or 15 pounds of pieces, or placed in a 5-digit carrier 
routes, 5-digit scheme carrier routes, merged 5-digit, or merged 5-
digit scheme sack. Preparation of 5-digit scheme carrier routes sacks 
or pallets is optional but, if performed, must be done for all 5-digit 
scheme destinations. Preparation of merged 5-digit sacks or pallets and 
merged 5-digit scheme sacks or pallets is optional, but if performed 
must be done for all 5-digit ZIP Codes for which there is an indicator 
in the City State Product that permits co-containerization of carrier 
route and 5-digit packages. For merged 5-digit scheme sacks or pallets 
preparation also must be done for all 5-digit scheme destinations.
* * * * *

E640  Automation Standard Mail (A) Rates

1.0  REGULAR AND NONPROFIT RATES

1.1  All Pieces

    [Amend 1.1g to provide for preparation under M045, M710 and M720 to 
read as follows:]
    All pieces in an automation rate Regular or Nonprofit Standard Mail 
(A) mailing must:
* * * * *
    g. Be marked, sorted, and documented as specified in M045, M810 
(letter-size), M820 (flat-size), or (flat-size only) M710 and M720.
* * * * *

1.4  Rate Application--Flats

    [Amend the first sentence of 1.4 to provide for preparation under 
M045, M710 and M720 to read as follows:]
    Automation rates apply to each piece that is sorted under M045, 
M820, M710, or M720, into the corresponding qualifying groups: * * *
* * * * *

E650  Destination Entry

E651  Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
6.0  DSCF DISCOUNT
* * * * *

6.2  Eligibility

    Amend 6.2 by adding the following as the second sentence of 6.2 to 
allow DSCF rates for 5-digit packages in merged 5-digit or merged 5-
digit scheme sacks or pallets that are deposited at the destination 
delivery unit to read as follows:]
    * * * Pieces prepared under 1.0 through 4.0 and 6.0 and that are 
prepared in 5-digit packages placed in a merged 5-digit sack or pallet 
or in a merged 5-digit scheme sack or pallet that is deposited at the 
destination delivery unit as defined in 7.1, are eligible for the DSCF 
rate. * * *
7.0  DDU DISCOUNT
* * * * *

7.2  Eligibility

    [Amend the first sentence of 7.2 to provide for preparation under 
M710 and M720 to read as follows:]
    Pieces in a mailing that meet the standards in 1.0 through 4.0 and 
7.0 are eligible for the DDU rate when deposited at a DDU, addressed 
for delivery within that facility's service area (carrier routes), and 
placed in properly prepared and labeled carrier route packages sorted 
to carrier route trays (letters) or sacks (flats and irregular 
parcels), 5-digit carrier routes trays (letters) or sacks (flats and 
irregular parcels), or 5-digit scheme carrier routes sacks (flats) 
under M600 or M720, or merged 5-digit sacks (flats), or merged 5-digit 
scheme sacks (flats) under M720, or palletized under M045 or M720, and 
otherwise eligible for and claimed at a carrier route rate. * * *
* * * * *

L  Labeling Lists

L000  General Use

L001  5-Digit Scheme--Periodicals Flats and Irregular Parcels and 
Standard Mail (A) Flats

    [Amend the First sentence of L001 to read as follows:]
    When 5-digit scheme sort is used for Periodicals flats and 
irregular parcels packages and Standard Mail (A) flats packages, the 
applicable mail for the ZIP Codes shown in Column A must be combined on 
merged 5-digit scheme or 5-digit scheme pallets, or in merged 5-digit 
scheme or 5-digit carrier routes scheme sacks labeled to the 
corresponding destination shown in Column B.
* * * * *

M  Mail Preparation and Sortation

M000  General Preparation Standards

* * * * *

M010  Mailpieces

M011  Basic Standards

1.0 TERMS AND CONDITIONS
* * * * *

1.2  Presort Levels

    [Amend 1.2 by redesignating 1.2g through 1.2p as 1.2i through 1.2r, 
respectively, and adding new 1.2g and 1.2h to read as follows:]
    Terms used for presort levels are defined as follows:
* * * * *
    g. Merged 5-digit: the carrier route packages and/or automation 
rate 5-digit packages and/or Presorted rate 5-digit packages in a sack 
or on a pallet are all for a 5-digit ZIP Code that has an indicator in 
the Carrier Route Indicators field in the City State Product that 
allows combining carrier route rate packages with automation rate 5-
digit packages and Presorted rate 5-digit packages in the same 5-digit 
container.
    h. Merged 5-digit scheme: the 5-digit ZIP Codes on pieces in 
carrier route packages and/or automation rate 5-digit packages and/or 
Presorted rate 5-digit packages in a sack or on a pallet are all for 5-
digit ZIP Codes that are part of a single scheme as shown in L001, and 
the automation rate 5-digit packages and/or the Presorted rate 5-digit 
packages are also for 5-digit ZIP Codes that have an indicator in the 
Carrier Route Indicators field in the City State Product that allows 
combining carrier route packages with automation rate 5-

[[Page 10743]]

digit packages and Presorted rate 5-digit packages within the same 5-
digit container.

1.3  Preparation Instructions

    [Amend 1.3 by amending 1.3h to reflect the requirement for 5-digit 
scheme pallets to be prepared as either pure 5-digit scheme carrier 
routes pallets or as 5-digit scheme pallets that do not contain carrier 
route mail, and by redesignating 1.3j through 1.3u as 1.3l through 
1.3w, respectively, and adding new 1.3j and 1.3k that contain 
information on new merged 5-digit and ``merged 5-digit scheme'' 
sortations to read as follows:]
    For purposes of preparing mail:
* * * * *
    h. A 5-digit/scheme carrier routes sort for carrier route rate 
Periodicals flats and irregular parcels and Enhanced Carrier Route rate 
Standard Mail (A) flats prepared in sacks or as packages on pallets 
yields a 5-digit scheme carrier routes sack or pallet for those 5-digit 
ZIP Codes listed in L001 and 5-digit carrier routes sacks or pallets 
for other areas. The 5-digit ZIP Codes in each scheme are treated as a 
single presort destination subject to a single minimum sack or pallet 
volume, with no further separation by 5-digit ZIP Code required. Sacks 
or pallets prepared for a 5-digit scheme destination that contain 
carrier route packages for only one of the schemed 5-digit areas are 
still considered 5-digit scheme carrier routes sorted and are labeled 
accordingly. The 5-digit/scheme sort is optional for carrier route 
packages of flat-size and irregular parcel Periodicals and flat-size 
Enhanced Carrier Route rate Standard Mail (A) prepared in sacks or as 
packages on pallets. If preparation of 5-digit scheme carrier routes 
sacks or pallets is performed, it must be done for all 5-digit scheme 
destinations. A 5-digit/scheme carrier routes sort may contain only for 
carrier route packages prepared in sacks or as packages on pallets.
* * * * *
    j. A Merged 5-digit sort for Periodicals flats and irregular 
parcels and Standard Mail (A) flats prepared in sacks or as packages on 
pallets yields merged 5-digit sacks or pallets that contain carrier 
route packages and/or automation rate 5-digit packages, and/or 
Presorted rate 5-digit packages that are all for a 5-digit ZIP Code 
that has an indicator in the Carrier Route Indicators field in the City 
State Product that allows combining carrier route packages, automation 
rate 5-digit packages, and Presorted rate 5-digit packages in the same 
5-digit sack or pallet. The merged 5-digit sort is optional for 
Periodicals flats and irregular parcels and Standard Mail (A) flats 
prepared in sacks or as packages on pallets. Sacks or pallets prepared 
for a merged 5-digit destination that contain only a single rate level 
of package(s) (only carrier route packages(s) or only automation rate 
5-digit package(s) or only Presorted rate 5-digit packages) or that 
contain only two rate levels of package(s) are still considered to be 
merged 5-digit sorted and are labeled accordingly. If preparation of 
merged 5-digit sacks or pallets is performed, it must be done for all 
5-digit ZIP Code destinations with an indicator in the Carrier Route 
Indicators field in the City State Product that allows combining 
carrier route packages, automation rate 5-digit packages, and Presorted 
rate 5-digit packages in the same 5-digit container.
    k. A merged 5-digit scheme sort for Periodicals flats and irregular 
parcels and Standard Mail (A) flats prepared in sacks or as packages on 
pallets yields merged 5-digit scheme sacks or pallets that contain 
carrier route packages for those 5-digit ZIP Codes that are part of a 
single scheme as shown in L001, as well as automation rate 5-digit 
packages and Presorted rate 5-digit packages for 5-digit ZIP Codes in 
the scheme that have an indicator in the Carrier Route Indicators field 
in the City State Product that allows combining carrier route packages, 
automation rate 5-digit packages, and Presorted rate 5-digit packages 
in the same 5-digit container. Sacks or pallets prepared for a merged 
5-digit scheme destination that contain only a single rate level of 
package(s) (only carrier route packages(s) or only automation rate 5-
digit package(s) or only Presorted rate 5-digit packages) or that 
contain only two rate levels of package(s), or that contain packages 
for only one of the schemed 5-digit areas are still considered to be 
merged 5-digit scheme sorted and are labeled accordingly. If 
preparation of merged 5-digit scheme sacks or pallets is performed, it 
must be done for all 5-digit scheme destinations in L001, and it must 
be done for all 5-digit destinations with an indicator in the Carrier 
Route Indicators field in the City State Product that allows combining 
carrier route, automation rate 5-digit, and Presorted rate 5-digit 
packages in the same 5-digit container.
* * * * *

M031  Labels

* * * * *
4.0  PALLET LABELS
* * * * *
    [Revise the heading and contents of 4.4 to remove the requirement 
for pallet labels to contain the information required by the sack 
labeling standard for the class and rate claimed to read as follows:]

4.4  Required Information

    Labels must contain the information required under 4.0 and under 
M045 or M720 for the preparation method and class and rate claimed.
* * * * *
    [Amend the heading and contents of 4.7 to permit and require a 
``CARRIER ROUTES'' or ``CR-RTS'' designation only on 5-digit carrier 
routes pallets to read as follows:]

4.7  5-Digit Carrier Routes Pallets

    All 5-digit carrier routes or 5-digit carrier routes scheme pallets 
must show the words ``CARRIER ROUTES'' (or ``CR-RTS'') after the 
processing category description on the content line under M045 and 
M720.

4.8  Delivery Unit, SCF, DDU, and DSCF Rates

    [Amend 4.8 to require ``DDU'' and/or ``DSCF'' as applicable, only 
on 3-digit or SCF pallets, and to use ``DSCF'' for Periodicals rather 
than ``SCF'' to read as follows:]
    If a 3-digit or SCF pallet contains copies claimed at Periodicals 
delivery unit rates or Standard Mail (A) DDU rates, the content line of 
the label must show the designation ``DDU'' after the processing 
category as provided in M045 and M720. If a 3-digit or SCF pallet 
contains copies claimed at Periodicals SCF rates or Standard Mail (A) 
DSCF rates, the content line of the pallet label must show the 
designation ``DSCF'' after the processing category and, if applicable, 
after the ``DDU'' designation as provided in M045 and M720. If a pallet 
contains pieces eligible for both rates, the separate ``DDU'' and 
``DSCF'' designations may be shown as ``DDU/DSCF.''
    [Revise the heading of 4.9 to read as follows:]

4.9  Automation Status

    [Revise 4.9 to read as follows:]
    All 5-digit, 5-digit scheme, 3-digit, SCF, ADC, ASF and BMC pallets 
must show ``BARCODED'' or ``BC'' on the contents line if the pallet 
contains automation rate mail as provided in M045 and M720. All 5-
digit, 5-digit scheme, 3-digit, SCF, ADC, ASF and BMC pallets must show 
``NONBARCODED'' or ``NBC'' on the contents line if the pallet contains 
Presorted rate mail under M045 and M720. If a pallet contains 
copalletized

[[Page 10744]]

automation rate and Presorted rate mail, the separate ``BARCODED'' and 
``NONBARCODED'' designations may be abbreviated ``BC/NBC.''
* * * * *
    [Add 4.14 to provide for additional pallet label information to 
read as follows:]

4.14  Pallet Package or Bundle Information

    It is recommended that mailers preparing packages on pallets add to 
the pallet label, below the office of mailing or mailer information 
line and under the provisions of M032.4.11, additional information 
listing the number of packages for each package sortation and rate 
level on the pallet (i.e., the number of carrier route packages, the 
number of 5-digit, 3-digit, and ADC automation rate packages, and the 
number of 5-digit, 3-digit, and ADC Presorted rate packages on each 
pallet).
* * * * *
5.0  SECOND LINE CODES
    [Amend 5.0 to add the pallet abbreviation for CARRIER ROUTES, and 
to add the abbreviation for NONBARCODED to read as follows:]
    The codes shown below must be used as appropriate on Line 2 of 
sack, tray, and pallet labels.

------------------------------------------------------------------------
               Content type                             Code
------------------------------------------------------------------------
 
                  *        *        *        *        *
Carrier Route.............................  C (type of route).
Carrier Routes............................  CR-RTS (5-digit sack and
                                             pallet designation).
 
                  *        *        *        *        *
Nonbarcoded...............................  Non BC (sacks).
                                            NBC (pallets).
------------------------------------------------------------------------

* * * * *

M032  Barcoded Labels

1.0  BASIC STANDARDS--TRAY AND SACK LABELS

1.1  Use

    [Amend the second and third sentences of 1.1 to require use of 
barcoded tray and sack labels for mailings prepared under M710 and M720 
to read as follows:]
* * * * *
    * * *  Barcoded tray labels are required for all mailings of 
automation rate First-Class Mail flat-size pieces, for co-trayed 
automation rate and Presorted rate First-Class Mail flat-size pieces 
under M710, and for automation rate First-Class Mail, Periodicals, and 
Standard Mail (A) letter-size pieces. Barcoded sack labels are required 
for all mailings of automation rate Periodicals and Standard Mail (A) 
flat-size pieces prepared in sacks and, under M710 and M720, for co-
sacked automation rate and Presorted rate mailings and co-sacked 
carrier route, automation rate and Presorted rate mailings. * * *

1.2  Destination Line (Line 1)

    [Amend 1.2b and 1.2c to include information on ``merged 5-digit'' 
sack labels to read as follows:]
    The destination line must meet these standards:
* * * * *
    b. Information. The destination line must contain only the 
information required by the applicable standards for the class, 
processing category, sortation level of the tray or sack, and the rates 
claimed. This information is contained in module L labeling lists for 
all sortation and rate levels except trays and sacks to carrier route, 
5-digit carrier routes, merged 5-digit, and 5-digit destinations, and 
trays to 5-digit scheme destinations. For the destination line of 
carrier route, 5-digit carrier routes, merged 5-digit, and 5-digit 
trays and sacks, the city, two-letter state abbreviation, and 5-digit 
ZIP Code of the destination 5-digit ZIP Code area must be shown. For 5-
digit scheme trays, the city, two-letter state abbreviation, and ZIP 
Code for the destination scheme must be obtained from the City State 
Product. The destination line may contain abbreviated city and state 
information if such abbreviations are those in the City State Product 
or in Publication 65, National Five-Digit ZIP Code and Post Office 
Directory.
    c. Military Destinations: On carrier route, 5-digit carrier routes, 
and 5-digit trays and sacks and on merged 5-digit sacks, the 
destination 5-digit ZIP Code of the mail contained in the tray or sack 
must be preceded by ``APO'' or ``FPO,'' as applicable, and ``AE'' (for 
090-098 ZIP Codes), ``AA'' (for 340 ZIPs), or ``AP'' (for 962-966 
ZIPs), as applicable.

1.3  Content Line (Line 2)

* * * * *

Exhibit 1.3a  3-Digit Content Identifier Numbers

* * * * *

------------------------------------------------------------------------
      Class and Mailing         CIN      Human-Readable  Content Line
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
FIRST-CLASS MAIL
 
 [Amend Exhibit 1.3a by adding the following after ``FCM Flats--
 Presorted'' to read as follows:]
 
FCM Flats--Co-Trayed Automation and Presorted
 
 5-digit trays...............    221  FCM FLTS 5D BC/NBC
3-digit trays................    222  FCM FLTS 3D BC/NBC
ADC trays....................    231  FCM FLTS ADC BC/NBC
mixed ADC trays..............    232  FCM FLTS BC/NBC WKG
 
*                  *                  *                  *
                  *                  *                  *
PERIODICALS (PER)
 
 [Amend Exhibit 1.3a by adding the following after ``PER Flats--5-Digit,
 3-Digit, and Basic'' to read as follows:]
 
PER Flats--Co-Sacked Automation and Presorted
 
 5-digit sacks...............    321  PER FLTS 5D BC/NBC
3-digit and origin/entry 3-      322  PER FLTS 3D BC/NBC
 digit sacks.
SCF and origin/entry SCF         329  PER FLTS SCF BC/NBC
 sacks.

[[Page 10745]]

 
ADC sacks....................    331  PER FLTS ADC BC/NBC
mixed ADC sacks..............    332  PER FLTS BC/NBC WKG
 
PER Flats--Merged Carrier
 Route, Automation, and
 Presorted
 
merged 5-digit (flats).......    339  PER FLTS CR/5D
merged 5-digit (irregular        340  PER IRREG CR/5D
 parcels).
merged 5-digit scheme (flats)    349  PER FLTS CR/5D SCH
merged 5-digit scheme            365  PER IRREG CR/5D SCH
 (irregular parcels).
 
*                  *                  *                  *
                  *                  *                  *
PERIODICALS (NEWS)
 
[Amend Exhibit 3.1a by adding
 the following after ``NEWS
 FLATS--5-digit, 3-Digit, and
 Basic'' to read as follows:]
NEWS Flats--Co-Sacked
 Automation and Presorted
 
5-digit sacks................    421  NEWS FLTS 5D BC/NBC
3-digit sacks................    422  NEWS FLTS 3D BC/NBC
SCF and origin/entry SCF         429  NEWS FLTS SCF BC/NBC
 sacks.
ADC sacks....................    431  NEWS FLTS ADC BC/NBC
mixed ADC sacks..............    432  NEWS FLTS BC/NBC WKG
NEWS Flats--Merged Carrier
 Route, Automation, and
 Presorted
 
merged 5-digit (flats).......    439  NEWS FLTS CR/5D
merged 5-digit (irregular        440  NEWS IRREG CR/5D
 parcels).
merged 5-digit scheme (flats)    449  NEWS FLTS CR/5D SCH
merged 5-digit scheme            465  NEWS IRREG CR/5D SCH
 (irregular parcels).
 
*                  *                  *                  *
                  *                  *                  *
STANDARD MAIL (A)
 
[Amend Exhibit 3.1a by adding
 the following after
 ``Enhanced Carrier Route
 flats--Nonautomation'' to
 read as follows:]
STD Flats--Co-Sacked
 Automation and Presorted
5-digit sacks................    521  STD FLTS 5D BC/NBC
3-digit and origin/entry 3-      522  STD FLTS 3D BC/NBC
 digit sacks.
ADC sacks....................    531  STD FLTS ADC BC/NBC
mixed ADC sacks..............    532  STD FLTS BC/NBC WKG
STD Flats--Co-Sacked Carrier
 Route, Automation, and
 Presorted
 
merged 5-digit...............    539  STD FLTS CR/5D
merged 5-digit scheme........    549  STD FLTS CR/5D SCH
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

M033  Sacks and Trays

1.0 BASIC STANDARDS
* * * * *


1.7  Origin/Entry 3-Digit/Scheme Trays and Sacks

    [Amend 1.7 to refer to the preparation of merged 5-digit sacks and 
merged 5-digit scheme sacks to read as follows:]
    Except for flat-size and irregular parcel-size Periodicals under 
1.8, after all carrier route, 5-digit carrier routes (and, where 
permitted for flats in sacks, merged 5-digit scheme, 5-digit scheme 
carrier routes, merged 5-digit, and where permitted for letters in 
trays, 3-digit carrier routes), 5-digit (and where permitted for 
automation letters in trays, 5-digit scheme), 3-digit (and, where 
permitted for automation letters in trays, 3-digit scheme) sacks/trays 
are prepared, an origin/entry 3-digit sack or tray (or, if applicable, 
origin/entry 3-digit scheme tray) must be prepared to contain any 
remaining mail for each 3-digit (or 3-digit scheme) area serviced by 
the SCF (mail processing office) serving the post office where the mail 
is verified (origin), and may be prepared for each 3-digit (or 3-digit 
scheme) area served by the SCF/plant where mail is entered (if that is 
different from the SCF/plant serving the post office where the mail is 
verified, e.g., a PVDS deposit site). In all cases, only one less-than-
full sack or

[[Page 10746]]

tray may be prepared for each 3-digit (or 3-digit scheme) area.

1.8  Periodicals Flats and Irregular Parcels Origin/Entry SCF Sacks

    [Amend 1.8 to refer to the preparation of merged 5-digit sacks and 
merged 5-digit scheme sacks to read as follows:]
    For flat-size and irregular parcel-size Periodicals, after all 
carrier route, 5-digit carrier routes (and, where permitted, merged 5-
digit scheme, 5-digit scheme carrier routes, and merged 5-digit), 5-
digit, 3-digit, and required SCF sacks are prepared, an origin/entry 
SCF sack must be prepared to contain any remaining 5-digit and 3-digit 
packages for the 3-digit ZIP Code area(s) served by the SCF serving the 
post office where the mail is verified (origin), and may be prepared 
for the area served by the SCF/plant where mail is entered (if that is 
different from the SCF/plant serving the post office where the mail is 
verified, e.g., a PVDS deposit site). In all cases, only one less-than-
full sack may be prepared for each SCF area.
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION

5.1  Presort

    [Amend the first five sentences of 5.1 to provide for advanced 
pallet preparation options in M720 to read as follows:]
    Pallet preparation and pallet sortation are subject to the specific 
standards in M045 and M720. Pallet sortation is generally intended to 
presort the palletized portion of a mailing to at least the finest 
extent required for the corresponding class of mail and method of 
preparation. Pallet sortation is sequential from the lowest (finest) 
level to the highest and must be completed at each required level 
before the next optional or required level is prepared. Standard 
preparation terms for pallets are defined in M011, standard presort 
levels are defined in M045 and advanced presort levels are defined in 
M720. For sacks, trays, or machinable parcels on pallets, the mailer 
must prepare all required pallet levels before any mixed ADC or mixed 
BMC pallets are prepared for a mailing or job. Packages and bundles 
prepared under M045 or M720 must not be placed on mixed ADC or mixed 
BMC pallets * * *

5.2  Required Preparation

    [Amend the second sentence of 5.2a 1 to provide for advanced pallet 
preparation options in M720 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 packages of 
Periodicals flats and irregular parcels and packages of Standard Mail 
(A) 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 merged 5-digit scheme, 5-digit 
scheme carrier routes, 5-digit scheme, merged 5-digit, 5-digit carrier 
routes, or 5-digit pallet. * * *
* * * * *

5.6  Mail on Pallets

    [Amend 5.6 by removing current 5.6c and 5.6d; redesignating current 
5.6e as 5.6f, adding new 5.6c through 5.6e to reflect new requirements 
for separating carrier route rate mail from non-carrier route rate mail 
on 5-digit and 5-digit scheme pallets to read as follows:]
    These standards apply to mail on pallets:
* * * * *
    c. For Bound Printed Matter (other than machinable parcels), 
carrier route rate mail and Presorted rate mail in the same mailing job 
may be combined on all levels of pallets.
    d. For Standard Mail (A) and Periodicals letter-size mail prepared 
in trays on pallets, and for nonletter-size Periodicals and Standard 
Mail (A) prepared either as sacks on pallets or as packages/bundles on 
pallets, carrier route rate mail must be prepared on separate 5-digit 
pallets (5-digit carrier routes or 5-digit scheme carrier routes 
pallets) from automation rate or Presorted rate mail (that must be 
prepared on 5-digit pallets or 5-digit scheme pallets). Exception: When 
nonletter-size Periodicals and flat-size Standard Mail (A) is prepared 
under 5.6e, carrier route rate mail, automation rate mail, and 
Presorted rate mail may be copalletized on the same merged 5-digit 
pallet or on the same merged 5-digit scheme pallet for applicable 5-
digit ZIP Codes.
    e. Mailers of nonletter-size Periodicals and flat-size Standard 
Mail (A) that prepare packages and/or bundles on pallets may 
copalletize carrier route rate mail, automation rate mail, and 
Presorted rate mail on the same merged 5-digit pallet or on the same 
merged 5-digit scheme pallet for those 5-digit ZIP Codes where the 
Carrier Route Indicators field in the City State Product indicates this 
is permissible. To use this option, mailings must meet the standards in 
M720.
* * * * *
6.0  COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE 
PIECES
* * * * *

6.2  Application

    [Amend 6.2 by removing the last word ``M045'' and replacing it with 
``M045 or M720.'']

6.3  Periodicals Publications

    [Amend 6.3 by replacing the reference ``M045'' in the next to last 
sentence with ``M045 or M720.'']

6.4  Standard Mail (A)

    [Amend the last sentence of 6.4 by removing the word ``M045'' and 
replacing it with ``M045 or M720.'']
* * * * *

M045  Palletized Mailings

* * * * *
4.0  PALLET PRESORT AND LABELING
    [Amend 4.0 by removing current 4.4; redesignating current 4.2 and 
4.3 as 4.4 and 4.5, respectively; amending 4.1 to make it applicable to 
only Periodicals mail, to reflect new 5-digit pallet preparation 
procedures, and to clarify and amend the standards for line 2 of pallet 
labels; adding new 4.2 that separately specifies sortation of Standard 
Mail (A) pallets, reflects new 5-digit pallet preparation procedures, 
and clarifies and amends the standards for line 2 of pallet labels; 
adding new 4.3 that separately specifies sortation of Bound Printed 
Matter pallets and clarifies and amends the standards for line 2 of 
pallet labels to read as follows:]

4.1  Periodicals Packages, Bundles, Sacks, or Trays on Pallets

    Mailers must prepare pallets in the sequence listed below. Mailers 
not opting to perform or not permitted to perform scheme sortation 
under 4.1a and 4.1b using L001 must begin preparing pallets under 4.1c. 
Pallets must be labeled according to the Line 1 and Line 2 information 
listed below and under M031. At the mailer's option, Periodicals 
nonletter mail prepared as packages and/or bundles on pallets may be 
palletized in accordance with the advanced presort option under M720.
    a. 5-Digit Scheme Carrier Routes. Optional. Permitted only for 
nonletter-size packages/bundles on pallets. May contain only carrier 
route packages and bundles for the same 5-digit scheme under L001. If 
scheme sort is performed,

[[Page 10747]]

it must be done for all 5-digit scheme destinations. For all 5-digit 
destinations that are not part of a scheme, prepare 5-digit carrier 
routes pallets under 4.1c.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CARRIER ROUTES'' or ``CR-
RTS'' and ``SCHEME'' or ``SCH.''
    b. 5-Digit Scheme. Optional. Permitted only for nonletter-size 
packages/bundles on pallets. May contain only automation rate and/or 
Presorted rate packages and bundles for the same 5-digit scheme under 
L001. If scheme sort is performed, it must be done for all 5-digit 
scheme destinations. For all 5-digit destinations that are not part of 
a scheme, prepare 5-digit pallets under 4.1d.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``5D,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail, followed by ``SCHEME'' or ``SCH.''
    c. 5-Digit Carrier Routes. Required for sacks; required for 
packages and bundles (except for packages and bundles prepared to 5-
digit scheme carrier routes pallets under 4.1a); optional for trays. 
May contain only carrier route mail for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable; followed by ``FLTS'' 
or ``IRREG'' or, for trays on pallets only, ``LTRS'' as applicable; 
followed by ``CARRIER ROUTES'' or ``CR-RTS.''
    d. 5-Digit. Required for sacks; required for packages and bundles 
(except for packages and bundles prepared to 5-digit scheme pallets 
under 4.1b); optional for trays. May contain only automation rate and/
or Presorted rate mail for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable; followed by ``FLTS'' 
or ``IRREG'' or, trays on pallets only, ``LTRS'' as applicable; 
followed by ``5D;'' followed by ``BARCODED'' or ``BC'' if the pallet 
contains automation rate mail; and followed by ``NONBARCODED'' or 
``NBC'' if the pallet contains Presorted rate mail.
    e. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and/or Presorted rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' or (trays on pallets only) ``LTRS'' as applicable, 
followed by ``3D,'' followed by ``DDU'' if DDU rates are claimed, 
followed by ``DSCF'' if SCF rates are claimed, followed by ``BARCODED'' 
or ``BC'' if the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    f. SCF. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail.
    (1) Line 1: use L002, Column C
    (2) Line 2: ``PER'' or ``NEWS'' as applicable; followed by ``FLTS'' 
or ``IRREG'' or, trays on pallets only, ``LTRS'' as applicable; 
followed by ``SCF;'' followed by ``DDU'' if DDU rates are claimed; 
followed by ``DSCF'' if SCF rates are claimed; followed by ``BARCODED'' 
or ``BC'' if the pallet contains automation rate mail; and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    g. ADC. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail.
    (1) Line 1 labeling: use L004.
    (2) Line 2 labeling: ``PER'' or ``NEWS'' as applicable; followed by 
``FLTS'' or ``IRREG'' or, trays on pallets only, ``LTRS'' as 
applicable; followed by ``ADC;'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail; and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    h. For sacks and trays on pallets only, mixed ADC. Optional. May 
contain carrier route rate, automation rate, and/or Presorted rate 
mail.
    (1) Line 1: use ``MXD'' followed by the city/state/ZIP Code of the 
ADC serving the 3-digit ZIP Code prefix of the entry post office as 
shown in L004, Column A (label to plant serving entry post office if 
authorized by the processing and distribution manager).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable; followed by ``FLTS'' 
or ``IRREG'' or, trays on pallets only, ``LTRS'' as applicable; 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail; followed by ``WKG.''

4.2  Standard Mail (A) Packages, Bundles, Sacks, or Trays on 
Pallets

    Mailers must prepare pallets in the sequence listed below. Mailers 
not opting to perform or not permitted to perform scheme sortation 
under 4.2a and 4.2b using L001 must begin preparing pallets under 4.2c. 
Pallets must be labeled according to the Line 1 and Line 2 information 
listed below and under M031. At the mailer's option, flat-size Standard 
Mail (A) prepared as packages and/or bundles on pallets may be 
palletized in accordance with the advanced presort option under M720.
    a. 5-Digit Scheme Carrier Routes. Optional. Permitted only for 
flat-size packages/bundles on pallets. May contain only carrier route 
rate packages and bundles for the same 5-digit scheme under L001. If 
scheme sort is performed, it must be done for all 5-digit scheme 
destinations. For all 5-digit destinations that are not part of a 
scheme, prepare 5-digit carrier routes pallets under 4.2c.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``STD FLTS 5D'' followed by ``CARRIER ROUTES'' or ``CR-
RTS'' and ``SCHEME'' or ``SCH.''
    b. 5-Digit Scheme. Optional. Permitted only for flat-size packages/
bundles on pallets. May contain only automation rate and/or Presorted 
rate packages and bundles for the same 5-digit scheme under L001. If 
scheme sort is performed, it must be done for all 5-digit scheme 
destinations. For all 5-digit destinations that are not part of a 
scheme, prepare 5-digit pallets under 4.2d.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``STD FLTS 5D,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail, 
and followed by ``SCHEME'' or ``SCH.''
    c. 5-Digit Carrier Routes. Required for sacks; required for 
packages and bundles (except for packages and bundles prepared to 5-
digit carrier route scheme pallets under 4.2a); optional for trays. May 
contain only carrier route rate mail for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS'' or ``STD A IRREG'' or, for trays on 
pallets only ``STD LTRS,'' as applicable, followed by ``CARRIER 
ROUTES'' or ``CR-RTS.''
    d. 5-Digit. Required for sacks; required for packages and bundles 
(except for packages and bundles prepared to 5-digit scheme pallets 
under 4.2b); optional for trays. May contain only automation rate and/
or Presorted rate mail for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D'' or ``STD A IRREG 5D'' or, for trays on 
pallets only ``STD LTRS 5D,'' as applicable;

[[Page 10748]]

followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    e. 3-digit: optional. May contain carrier route rate, automation 
rate, and/or Presorted rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D'' or ``STD A IRREG 3D'' or, for trays on 
pallets only ``STD LTRS 3D,'' as applicable; followed by ``DDU'' if DDU 
rates are claimed, followed by ``DSCF'' if DSCF rates are claimed; 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    f. SCF. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``STD FLTS SCF'' or ``STD A IRREG SCF'' or, for trays 
on pallets only ``STD LTRS SCF,'' as applicable; followed by ``DDU'' if 
DDU rates are claimed, followed by ``DSCF'' if DSCF rates are claimed; 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    g. If DBMC rates are not claimed: Destination BMC. Required. May 
contain carrier route rate, automation rate, and/or Presorted rate 
mail. Sort ADC packages, trays, or sacks, or AADC trays to BMC pallets 
based on the label to ZIP Code for the ADC in L004 or the label to ZIP 
Code for the AADC in L801.
    (1) Line 1: use L601.
    (2) Line 2: ``STD FLTS BMC'' or ``STD A IRREG BMC'' or, for trays 
on pallets only ``STD LTRS BMC'' as applicable, followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    g. If DBMC rates are claimed: Destination ASF/BMC. Destination ASF 
allowed and required only if DBMC rate is claimed for mail deposited at 
an ASF, otherwise sort to Destination BMC. May contain carrier route 
rate, automation rate, and/or Presorted rate mail. Sort ADC packages, 
trays or sacks, or AADC trays to ASF/BMC pallets based on the label to 
ZIP Code for the ADC in L004 or the label to ZIP Code for the AADC in 
L801.
    (1) Line 1: use L602.
    (2) Line 2: ``STD FLTS'' or ``STD A IRREG'' or, for trays on 
pallets only ``STD LTRS,'' as applicable; followed by ``ASF'' or ``BMC 
as applicable; followed by ``BARCODED'' or ``BC'' if the pallet 
contains automation rate mail; and followed by ``NONBARCODED'' or 
``NBC'' if the pallet contains Presorted rate mail.
    h. For sacks and trays on pallets only, mixed BMC. Optional. May 
contain carrier route rate, automation rate, and/or Presorted rate 
mail.
    (1) Line 1: use ``MXD'' followed by the information in L601, Column 
B, for the BMC serving the 3-digit ZIP Code prefix of the entry post 
office (label to plant serving entry post office if authorized by the 
processing and distribution manager).
    (2) Line 2: ``STD FLTS'' or ``STD A IRREG'' or, for trays on 
pallets only ``STD LTRS'' as applicable, followed by ``BARCODED'' or 
``BC'' if the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail, 
followed by ``WKG.''

4.3  Bound Printed Matter Packages, Bundles, or Sacks on Pallets 
Prepare pallets in the sequence listed below. Label pallets 
according to the Line 1 and Line 2 information listed below and 
under M031.

    a. 5-digit. Required for sacks and for packages and bundles. May 
contain carrier route rate and/or Presorted rate mail.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D'' or ``STD B IRREG 5D'' as applicable, 
and, if the pallet contains only carrier route mail, followed by 
``CARRIER ROUTES'' (OR ``CR-RTS'').
    b. 3-digit. Optional. May contain carrier route rate and/or 
Presorted rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D'' or ``STD B IRREG 3D'' as applicable.
    c. SCF. Required. May contain carrier route rate and/or Presorted 
rate mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``STD FLTS SCF'' or ``STD B IRREG SCF'' as applicable.
    d. Destination BMC. Required. May contain carrier route rate and/or 
Presorted rate mail.
    (1) Line 1: use L601. Sort ADC packages or sacks to BMC pallets 
based on the label to ZIP Code for the ADC in L004.
    (2) Line 2: ``STD FLTS BMC'' or ``STD B IRREG BMC'' as applicable.
    e. For sacks on pallets only, mixed BMC. Optional. May contain 
carrier route rate and/or Presorted rate mail.
    (1) Line 1: use ``MXD'' followed by the information in L601, Column 
B, for the BMC serving the 3-digit ZIP Code prefix of the entry post 
office (label to plant serving entry post office if authorized by the 
processing and distribution manager).
    (2) Line 2: ``STD FLTS'' or ``STD B IRREG'' as applicable, followed 
by ``WKG.''

4.4 Machinable Parcels--Standard Mail (A), Bound Printed Matter, 
and Parcel Post (Except BMC Presort, OBMC Presort, and Parcel 
Select DDU and DSCF)

    Mailers must prepare pallets in the sequence listed below. Mailers 
may prepare Parcel Post other than BMC Presort, OBMC Presort, and 
Parcel Select DDU and DSCF on pallets under 4.4 as an option. If Parcel 
Post is optionally sorted under 4.4 it must meet all the requirements 
of 4.4. Pallets must be labeled according to the Line 1 and Line 2 
information listed below and under M031.
    a. 5-digit. Required, except optional for Standard Mail (A) if 3/5 
rates are not claimed.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD A MACH 5D'' or ``STD B MACH 5D'' as applicable.
    b. For Standard Mail if DBMC rates are not claimed: Destination 
BMC. Required.
    (1) Line 1: use L601.
    (2) Line 2: ``STD A MACH BMC'' or ``STD B MACH BMC,'' as 
applicable.
    c. For Standard Mail if DBMC rates are claimed: Destination ASF/
BMC. Destination ASF allowed and required only if DBMC rate is claimed 
for mail deposited at an ASF, otherwise sort to destination BMC 
(required).
    (1) Line 1: use L602.
    (2) Line 2: ``STD A MACH'' or ``STD B MACH'' as applicable; 
followed by ``ASF'' or ``BMC'' as applicable.
    d. Mixed BMC. Optional.
    (1) Line 1: use ``MXD'' followed by the information in L601, Column 
B, for the BMC serving the 3-digit ZIP Code prefix of the entry post 
office (label to plant serving entry post office if authorized by the 
processing and distribution manager).
    (2) Line 2: ``STD A MACH'' or ``STD B MACH'' as applicable, 
followed by ``WKG.''

4.5  Presorted Special Standard and Library Mail

    Mailers must prepare 5-digit pallets for Presorted 5-digit rate 
mailings and must prepare BMC pallets for Presorted BMC rate mailings 
as described below. Label pallets according to the Line 1 and Line 2 
information listed below and under M031.

[[Page 10749]]

    a. 5-digit (5-digit rate only). Required.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D,'' or ``STD B IRREG 5D,'' or ``STD B MACH 
5D,'' as applicable.
    b. Destination BMC (BMC rate only). Required.
    (1) Line 1: use L601.
    (2) Line 2: ``STD FLTS BMC,'' or ``STD B IRREG BMC,'' or ``STD B 
MACH BMC,'' as applicable.
5.0  PACKAGE REALLOCATION FOR PERIODICALS FLATS AND IRREGULAR PARCELS 
AND STANDARD MAIL (A) FLATS ON PALLETS

5.1  Basic Standards

    [Amend the second sentence of 5.1 to provide for new pallet levels 
to read as follows:]
    * * * The software will determine if mail for an SCF service area 
would fall beyond the SCF level if all optional merged 5-digit scheme, 
optional 5-digit scheme carrier routes, optional 5-digit scheme, merged 
5-digit, required 5-digit carrier routes, required 5-digit, or optional 
3-digit pallets are prepared. * * *

5.2  General Reallocation Rules

    [Amend 5.2b, 5.2c, and 5.2d to provide for new pallet levels to 
read as follows:]
    Reallocation rules:
* * * * *
    b. Reallocate packages from the highest available pallet level 
possible. If it is not possible to reallocate some mail from a 3-digit 
pallet first, then attempt to eliminate a 3-digit pallet and reallocate 
all mail from that pallet to create an SCF pallet; if mail cannot be 
reallocated from a 3-digit pallet, then attempt to reallocate some mail 
from a 5-digit, 5-digit carrier routes, merged 5-digit, 5-digit scheme, 
5-digit scheme carrier routes, or merged 5-digit scheme pallet.
    c. The reallocation process may result in the elimination of a 3-
digit pallet to create an SCF pallet, but a 5-digit, 5-digit carrier 
routes, merged 5-digit, 5-digit scheme, 5-digit scheme carrier routes, 
or merged 5-digit scheme pallet may not be eliminated in order to 
create an SCF pallet.
    d. When reallocating mail to create an SCF pallet, reallocate mail 
from only one more finely sorted pallet. This may be accomplished by 
reallocating a portion of a 3-digit pallet, reallocating all mail from 
a 3-digit pallet, or reallocating a portion of one of the following 
pallets: 5-digit, 5-digit carrier routes, merged 5-digit, 5-digit 
scheme, 5-digit scheme carrier routes, or merged 5-digit scheme.
* * * * *

5.3-Reallocation of Packages if Optional 3-Digit Pallets Are 
Prepared

    [Amend 5.3c and 5.3d to provide for new pallet levels to read as 
follows:]
    Reallocation rules:
* * * * *
    c. If preparation is under M045 and there are no 3-digit pallets, 
attempt to identify a 5-digit, 5-digit carrier routes, 5-digit scheme, 
or 5-digit scheme carrier routes pallet of adequate weight to support 
reallocation of one or more packages to bring the mail that would fall 
beyond the SCF pallet level back to the SCF level. If preparation is 
under M720 and there are no 3-digit pallets, attempt to identify a 5-
digit, 5-digit carrier routes, merged 5-digit, 5-digit scheme, 5-digit 
scheme carrier routes, or merged 5-digit scheme pallet of adequate 
weight to support reallocation of one or more packages to bring the 
mail that would fall beyond the SCF pallet level back to the SCF level. 
A sufficient volume of mail must remain on the applicable pallet after 
reallocation to meet the pallet weight minimum established by the 
mailer in compliance with applicable DMM standards. If a 5-digit, 5-
digit carrier routes, merged 5-digit, 5-digit scheme, 5-digit scheme 
carrier routes, or merged 5-digit scheme pallet, as applicable, of 
adequate weight is available, create an SCF pallet by combining the 
reallocated packages with the mail that would fall beyond the SCF 
pallet level.
    d. If no single 5-digit, 5-digit carrier routes, merged 5-digit, 5-
digit scheme, 5-digit scheme carrier routes, or merged 5-digit scheme 
pallet, as applicable, within the SCF service area contains an adequate 
volume of mail to allow reallocation of a portion of the mail on a 
pallet as described in 5.3c, then no packages will be reallocated and 
an SCF pallet will not be prepared; the mail that falls beyond the SCF 
pallet level must be placed on the appropriate level pallet (ADC or 
BMC) or in the appropriate level sack.

5.4  Reallocation of Packages if Optional 3-digit Pallets Are Not 
Prepared

    [Amend 5.4a and 5.4b to provide for new pallet levels to read as 
follows:]
    Reallocation rules:
    a. Attempt to identify a 5-digit, 5-digit carrier routes, merged 5-
digit, 5-digit scheme, 5-digit scheme carrier routes, or merged 5-digit 
scheme pallet of adequate weight to support reallocation of one or more 
packages to bring the mail that would fall beyond the SCF pallet level 
back to the SCF level. A sufficient volume of mail must remain on the 
5-digit, 5-digit carrier routes, merged 5-digit, 5-digit scheme, 5-
digit scheme carrier routes, or merged 5-digit scheme pallet after 
reallocation to meet the pallet weight minimum established by the 
mailer in compliance with applicable DMM standards. If a 5-digit, 5-
digit carrier routes, merged 5-digit, 5-digit scheme, 5-digit scheme 
carrier routes, or merged 5-digit scheme pallet of adequate weight is 
available, create an SCF pallet by combining the reallocated packages 
with the mail that would fall beyond the SCF pallet level.
    b. If no single 5-digit, 5-digit carrier routes, merged 5-digit, 5-
digit scheme, 5-digit scheme carrier routes, or merged 5-digit scheme 
pallet within the SCF service area contains an adequate volume of mail 
to allow reallocation of a portion of the mail on a pallet as described 
in 5.4a, then no packages will be reallocated and an SCF pallet will 
not be prepared; the mail that falls beyond the SCF pallet level must 
be placed on the appropriate level pallet (ADC or BMC) or in the 
appropriate level sack.
* * * * *
6.0  PALLETS OF PACKAGES, BUNDLES, AND TRAYS OF LETTER-SIZE MAIL

6.1  Periodicals

    [Amend 6.1 by replacing the second sentence with the following to 
require placement of carrier route sorted mail on separate pallets from 
automation rate and Presorted rate mail at the 5-digit presort level to 
read as follows:]
    * * * Carrier route sorted pieces must be prepared on separate 5-
digit pallets (5-digit carrier routes or 5-digit scheme carrier routes 
pallets) from automation rate or Presorted rate pieces (prepared on 5-
digit pallets or 5-digit scheme pallets). Exception: When non-letter-
size Periodicals are prepared as packages and/or bundles on pallets 
under M720, carrier route sorted mail, automation rate mail, and 
Presorted rate mail may be placed on the same merged 5-digit pallet or 
on the same merged 5-digit scheme pallet for those 5-digit ZIP Codes 
for which the Carrier Route Indicators field in the City State Product 
indicates are eligible for such copalletization. * * *

6.2  Standard Mail (A)

    [Amend 6.2 by replacing the second sentence with the following to 
require placement of carrier route rate mail on separate pallets from 
automation rate

[[Page 10750]]

and Presorted rate mail at the 5-digit presort level to read as 
follows:]
    * * * Carrier route rate pieces must be prepared on separate 5-
digit pallets (5-digit carrier routes or 5-digit scheme carrier routes 
pallets) from automation rate and/or Presorted rate pieces (prepared on 
5-digit pallets or 5-digit scheme pallets). Exception: When flat-size 
pieces are prepared as packages and/or bundles on pallets under M720, 
carrier route rate mail, automation rate mail, and Presorted rate mail 
may be placed on the same merged 5-digit pallet or on the same merged 
5-digit scheme pallet for those 5-digit ZIP Codes for which the Carrier 
Route Indicators field in the City State Product indicates are eligible 
for such copalletization. * * *
* * * * *
8.0  PALLETS OF COPALLETIZED PERIODICALS OR STANDARD MAIL (A) FLAT-SIZE 
PIECES

8.1  Basic Standards

    [Amend 8.1 by adding the following after the first sentence to 
provide for preparation under M720 to read as follows:]
    * * * In addition, if copalletized under M720, the provisions of 
M720 must be met. * * *
* * * * *
    [Amend the heading and the contents of 8.4 to read as follows:]

8.4  Pallet Labels

    Pallet labels for copalletized mailings must meet the provisions of 
M031, M045.4.0, and if applicable, M720.
* * * * *

M100  First-Class Mail (Nonautomation)

* * * * *

M130  Presorted First-Class

1.0  BASIC STANDARDS

1.1  All Pieces

    [Amend 1.1 to provide for preparation under M720 to read as 
follows:]
    Each Presorted First-Class mailing must meet the applicable 
standards in E130 and in M010, M020, and M030; flat-sized mail co-
trayed with automation rate mail must be prepared under 1.6 and M720. 
All pieces must be in the same processing category, subject to 1.4, and 
must be sorted together and prepared under 2.0, 3.0, 4.0, or 5.0 as 
appropriate; automation rate First-Class Mail must be prepared under 
M710, M810, or M820, as applicable. Letter-size pieces (including card-
size pieces) must be prepared in letter trays; flat-size pieces must be 
prepared in flat trays; parcels must be prepared in sacks. Subject to 
M012, all pieces must be marked ``Presorted'' and ``First-Class.''
* * * * *
    [Add new 1.6 to read as follows:]

1.6  Co-Traying with Automation Rate Mail

    Packages of flat-size mail prepared under 4.1 may be co-trayed with 
automation rate mail that is part of the same mailing job at all levels 
of trays if prepared under M710.
* * * * *

M200  Periodicals (Nonautomation)

1.0  BASIC STANDARDS

1.1  General Preparation

    [Amend 1.1 to provide for preparation under M710 and M720 to read 
as follows:]
    All pieces in each nonautomation rate Periodicals mailing must be 
in the same processing category and sorted together to the finest 
extent required under 2.0 and either 3.0 or 4.0 as appropriate; 
automation rate Periodicals must be prepared under M810 or M820, as 
applicable; nonletter-size mail co-sacked with automation rate mail 
must be prepared under 1.6 and M710, or under 1.7 and M720. Letter-size 
pieces must be prepared in trays; flat-size pieces must be prepared in 
sacks. Palletization of trays, sacks, or packages is permitted by M040, 
M045, and M720. Postmasters may authorize preparation of small mailings 
in nonpostal containers if they consist primarily of packages for local 
ZIP Codes, do not exceed 20 pounds, and do not require postal 
transportation for processing.
* * * * *
    [Add new 1.6 and 1.7 to provide for preparation under M710 and M720 
to read as follows:]

1.6  Co-Sacking with Automation Rate Mail

    Packages of nonletter-size mail prepared under 2.4a and 2.4c 
through 2.4f may be co-sacked with automation rate mail that is part of 
the same mailing job under the standards in M710.

1.7  Merged Containerization of Carrier Route, Automation Rate, and 
Presorted Rate Mail

    Under the standards in M720, nonletter-size firm and 5-digit 
packages at Presorted rates that are prepared under 1.0 and 2.4a and 
2.4c may be co-sacked or copalletized with nonletter-size carrier route 
packages prepared under 1.0 and 2.4b and with nonletter-size 5-digit 
packages at automation rates prepared under M820 in merged 5-digit 
sacks or pallets and in merged 5-digit scheme sacks or pallets. Such 
co-sacking or copalletization may only be performed for those 5-digit 
ZIP Codes with an indicator in the Carrier Route Indicators field of 
the City State Product that shows such combination is permissible.
* * * * *

M600  Standard Mail (Nonautomation)

M610  Presorted Standard Mail (A)

1.0  BASIC STANDARDS

1.1  All Mailings

    [Amend the first sentence of 1.1 and 1.1c to provide for 
preparation under M710 and M720 to read as follows:]
    All mailings at Presorted Standard rates are subject to specific 
preparation standards in 2.0 through 6.0 and to these general standards 
(automation rate mail must be prepared under M710, M720, M810, or M820 
as applicable):
* * * * *
    c. All pieces must be sorted together and prepared under M045, or 
under M610 or, if flat-sized under M710 or 720.
* * * * *
    [Add new 1.5 and 1.6 to provide for preparation under M710 and M720 
to read as follows:]

1.5  Co-Sacking with Automation Rate Mail

    Packages of flat-size mail prepared under 4.3 may be co-sacked with 
automation rate mail that is part of the same mailing job under the 
standards in M710.

1.6  Merged Containerization With Carrier Route and Automation Rate 
Mail

    Under the standards in M720, flat-size 5-digit packages at 
Presorted rates prepared under 4.3a may be co-sacked or copalletized 
with flat-size carrier route rate packages prepared under M620 and with 
flat-size 5-digit packages at automation rates prepared under M820 in 
merged 5-digit sacks or pallets, or in merged 5-digit scheme sacks or 
pallets. Such co-sacking or copalletization may only be performed for 
those 5-digit ZIP Codes with an indicator in the Carrier Route 
Indicators field of the City State Product that shows such combination 
is permissible.
* * * * *

M620  Enhanced Carrier Route Standard

Mail 1.0  BASIC STANDARDS

1.1  All Mailings

    [Amend 1.1 to provide for preparation under M720 to read as 
follows:]

[[Page 10751]]

    All nonautomation rate Enhanced Carrier Route mailings are subject 
to these general standards (automation rate Enhanced Carrier Route 
mailings must be prepared under M810):
* * * * *
    c. All pieces must be sorted together and prepared under M045 or 
M720 (if palletized), or under M620.
* * * * *
    [Add new 1.6 to provide for preparation under M720 to read as 
follows:]

1.6  Merged Containerization with Automation Rate and Presorted 
Rate Mail

    Under the standards in M720, flat-size carrier route rate packages 
prepared under 2.0 may be co-sacked or copalletized with flat-size 5-
digit packages at Presorted rates prepared under M610 and with flat-
size 5-digit packages at automation rates prepared under M820 in merged 
5-digit sacks or pallets, or in merged 5-digit scheme sacks or pallets. 
Such co-sacking or copalletization may only be performed for those 5-
digit ZIP Codes with an indicator in the Carrier Route Indicators field 
of the City State Product that shows such combination is permissible.
* * * * *
    [Add new section M700 to provide for co-traying and co-sacking of 
automation rate and Presorted rate packages and co-sacking and 
copalletization of carrier route packages, 5-digit automation packages 
and 5-digit Presorted rate packages to read as follows:]

M700  Advanced Preparation Options

M710  Co-Traying and Co-Sacking of Automation Rate and Presorted 
Rate Mailings of Flat-Size Mail

1.0  FIRST-CLASS MAIL

1.1  Basic Standards

    Packages of flat-size pieces in an automation rate mailing may be 
co-trayed with packages of flat-size pieces in a Presorted rate mailing 
under the following conditions:
    a. The pieces in the automation rate mailing and in the Presorted 
rate mailing must be part of the same mailing job and reported on the 
same postage statement.
    b. Pieces in the automation rate mailing must meet the criteria for 
a flat under C050.3.2 and C820. Pieces in the Presorted rate mailing 
must meet the criteria for a flat under C050.3.1.
    c. The automation rate mailing must meet the eligibility criteria 
in E140, except that the traying criteria in 1.3 must be met rather 
than the traying criteria in M820.
    d. The Presorted rate mailing must meet the eligibility criteria in 
E130, except that the traying and documentation criteria in 1.1 and 1.3 
must be met rather than the traying and documentation criteria in M820.
    e. The rates for pieces in the automation rate mailing are applied 
based on the level of package to which they are sorted under E140.2.0.
    f. The automation rate pieces must be marked under M012. Pieces 
claimed at an automation rate must bear the ``First-Class'' marking or 
``Presorted'' and ``First-Class'' markings and, except as provided in 
M012, ``AUTO.'' The Presorted rate pieces must be marked ``First-
Class'' and ``Presorted.'' Presorted rate pieces must not bear the 
``AUTO'' marking.
    g. The packages from each separate mailing must be sorted together 
into trays as described in 1.3 using presort software that is PAVE-
certified or MAC-certified.
    h. A complete, signed postage statement, using the correct USPS 
form or an approved facsimile, must accompany each mailing job prepared 
under these procedures. In addition to the applicable postage 
statement, documentation produced by PAVE-certified or MAC-certified 
software must be submitted with each co-trayed mailing job that 
describes for each tray sortation level the number of pieces qualifying 
for each applicable automation rate and the number of pieces that 
qualify for the Presorted rate under P012.
    i. Barcoded tray labels under M032 must be used to label the trays.

1.2  Package Preparation

    The automation rate mailing must be packaged and labeled under 
M820. The Presorted rate mailing must be packaged and labeled under 
M130.

1.3  Tray Preparation and Labeling

    Presorted rate and automation rate packages prepared under 1.2 must 
be presorted together into trays (co-trayed) in the sequence listed 
below. Trays must be labeled using the following information for Lines 
1 and 2 and M032 for other sack label criteria.
    a. 5-digit: required, full trays only (no overflow trays).
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``FCM FLTS 5D BC/NBC.''
    b. 3-digit: required, full trays only (no overflow trays).
    (1) Line 1: Use L002, Column A.
    (2) Line 2: ``FCM FLTS 3D BC/NBC.''
    c. Origin/entry 3-digit: required for each 3-digit ZIP Code served 
by the SCF of the origin (verification) office, optional for each 3-
digit ZIP Code served by the SCF of an entry office other than the 
origin office, no minimum.
    (1) Line 1: Use L002, Column A.
    (2) Line 2: ``FCM FLTS 3D BC/NBC.''
    d. ADC: required, full trays only (no overflow trays), use L004 to 
determine ZIP Codes served by each ADC.
    (1) Line 1: Use L004.
    (2) Line 2: ``FCM FLTS ADC BC/NBC.''
    e. Mixed ADC: required, no minimum.
    (1) Line 1: Use ``MXD'' followed by the city, state, and ZIP Code 
of the facility serving the 3-digit ZIP Code of the entry post office, 
as shown in L002, Column C.
    (2) Line 2: ``FCM FLTS BC/NBC WKG.''
2.0  PERIODICALS

2.1  Basic Standards

    Packages of nonletter-size pieces in an automation rate mailing may 
be co-sacked with packages of nonletter-size pieces in a Presorted rate 
mailing under the following conditions:
    a. The pieces in the automation rate mailing and in the Presorted 
rate mailing must be part of the same mailing job and must be reported 
on the appropriate postage statement(s).
    b. The pieces in the mailing job must all be nonletter-size and 
meet any other size and mailpiece design requirements applicable to the 
rate category for which they are prepared.
    c. The automation rate mailing must meet the eligibility criteria 
in E240, except that the sacking and documentation criteria in 2.1, 2.3 
and 2.4 must be met rather than the sacking and documentation criteria 
in M820.
    d. The Presorted rate mailing must meet the eligibility criteria in 
E230, except that the sacking and documentation criteria in 2.1, 2.3 
and 2.4 must be met rather than the sacking and documentation criteria 
in M820.
    e. The rates for pieces in the automation rate mailing are applied 
based on the number of pieces in the package and the level of package 
to which they are sorted under E240. The rates for pieces in the 
Presorted rate mailing are based on the number of pieces in the package 
and the level of sack in which they are placed under E230.
    f. The packages from each separate mailing must be sorted together 
into sacks as described in 2.3 and 2.4 using presort software that is 
PAVE-certified.
    g. A complete, signed postage statement, using the correct USPS 
form

[[Page 10752]]

or an approved facsimile, must accompany each mailing job prepared 
under these procedures. In addition to the applicable postage 
statement, documentation prepared by PAVE-certified software must be 
submitted with each co-sacked mailing job that describes for each sack 
sortation level the number of pieces qualifying for each applicable 
automation rate and the number of pieces that qualify for each 
applicable Presorted rate under P012.
    h. Barcoded sack labels under M032 must be used to label sacks.

2.2  Package Preparation

    The automation rate mailing must be packaged and labeled under M820 
(all package levels). The Presorted rate mailing must be packaged and 
labeled under M200 (excluding carrier route packages).

2.3  Low Volume Packages in Sacks or on Pallets

    Five-digit, and 3-digit packages prepared under M200 and M820 that 
contain fewer than six pieces may be placed in 5-digit, 3-digit and SCF 
sacks when the publisher determines that such preparation improves 
service. Pieces in such low volume packages must claim the applicable 
basic Presorted rate, except for firm packages at Presorted rates as 
applicable under M200.1.4.

2.4  Sack Preparation and Labeling

    Presorted rate and automation rate packages prepared under 2.2 and 
2.3 must be presorted together into sacks (co-sacked) in the sequence 
listed below. Sacks must be labeled using the following information for 
Lines 1 and 2 and M032 for other sack label criteria. If, due to the 
physical size of the mailpieces, the automation rate pieces are 
considered flat-size under C820 and the carrier route sorted pieces and 
Presorted rate pieces are considered irregular parcels under C050, the 
processing category shown on the sack label must show ``FLTS.''
    a. 5-digit: required at 24 pieces to same 5-digit, optional with 
fewer pieces.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS 5D BC/
NBC.''
    b. 3-digit: required at 24 pieces to same 3-digit, optional with 
fewer pieces.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS 3D BC/
NBC.''
    c. SCF: required at 24 pieces, optional with fewer pieces.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS SCF BC/
NBC.''
    d. Origin/entry SCF: required for the SCF of the origin 
(verification) office, optional for the SCF of an entry office other 
than the origin office, no minimum.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS SCF BC/
NBC.''
    e. ADC: required at 24 pieces, optional with fewer pieces except 
that packages of fewer than 6 pieces are not permitted.
    (1) Line 1: use L004.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS ADC BC/
NBC.''
    f. Mixed ADC: required, no minimum, except that packages of fewer 
than 6 pieces at 5-digit, 3-digit, and ADC package levels are not 
permitted.
    (1) Line 1: Use ``MXD'' followed by the city, state, and ZIP Code 
of the facility serving the 3-digit ZIP Code of the entry post office, 
as shown in L002, Column C.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS BC/NBC 
WKG.''
3.0  STANDARD MAIL (A)

3.1  Basic Standards

    Packages of flat-size pieces in an automation rate mailing may be 
co-sacked with packages of flat-size pieces in a Presorted rate mailing 
under the following conditions:
    a. The pieces in the automation rate mailing and in the Presorted 
rate mailing must be part of the same mailing job and reported on the 
same postage statement or consolidated postage statement.
    b. Pieces in the automation rate mailing must meet the criteria for 
a flat under C050.3.2 and C820. Pieces in the Presorted rate mailing 
must meet the criteria for a flat under C050.3.1.
    c. The automation rate mailing must meet the eligibility criteria 
in E640, except that the sacking and documentation criteria in 3.1, 3.3 
and 3.4 must be met rather than the sacking and documentation criteria 
in M820.
    d. The Presorted rate mailing must meet the eligibility criteria in 
E620, except that the sacking and documentation criteria in 3.1, 3.3, 
and 3.4 must be met rather than the sacking and documentation criteria 
in M610.
    e. The rates for pieces in the automation rate mailing are applied 
based on the number of pieces in the package and the level of package 
to which they are sorted under E640.1.0. The rates for pieces in the 
Presorted rate mailing are based on the number of pieces in the package 
and the level of sack in which they are placed under E620.1.0.
    f. The automation rate pieces must be marked under M012. Pieces 
claimed at an automation rate must be marked ``Presorted Standard'' (or 
``PRSRT STD'') or ``Nonprofit Organization'' (or ``Nonprofit Org.'' or 
``Nonprofit'') and, except as provided in M012, ``AUTO.'' The Presorted 
rate pieces must be marked ``Presorted Standard'' (or ``PRSRT STD'') or 
``Nonprofit Organization'' (or ``Nonprofit Org.'' or ``Nonprofit''). 
Presorted rate pieces must not bear the ``AUTO'' marking.
    g. The packages from each separate mailing must be sorted together 
into sacks as described in 3.3 and 3.4 using presort software that is 
PAVE-certified or MAC-certified.
    h. A complete, signed postage statement, using the correct USPS 
form or an approved facsimile, must accompany each mailing job prepared 
under these procedures. In addition to the applicable mailing 
statement, PAVE-certified or MAC-certified documentation must be 
submitted with each co-sacked mailing job that describes for each sack 
sortation level the number of pieces qualifying for each applicable 
automation rate and the number of pieces that qualify for each 
applicable Presorted rate under P012.
    i. Barcoded sack labels under M032 must be used to label the sacks.

3.2  Package Preparation

    The automation rate mailing must be packaged and labeled under 
M820. The Presorted rate mailing must be packaged and labeled under 
M610. Loose packing under M610 is not permitted.

3.3  Sacking Under 125-Piece or 15-Pound Rules

    When the minimum quantity of 125-pieces or 15-pounds of mail is 
specified for a sack sortation level in 3.4, the provisions of M820.4.2 
apply.

3.4  Sack Preparation and Labeling

    Presorted rate and automation rate packages prepared under 3.2 must 
be presorted together into sacks (co-sacked) in the sequence listed 
below. Sacks must be labeled using the following information for Lines 
1 and 2, and M032 for other sack label criteria.
    a. 5-digit: required; 125-piece/15-pound minimum, smaller volume 
not permitted.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS 5D BC/NBC.''
    b. 3-digit: required; 125-piece/15-pound minimum, smaller volume 
not permitted.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D BC/NBC.'' c. Origin/entry 3-digit: 
required for each 3-digit ZIP Code served by the SCF of

[[Page 10753]]

the origin (verification) office, optional for each 3-digit ZIP Code 
served by the SCF of an entry office other than the origin office, no 
minimum.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D BC/NBC.''
    d. ADC: required; 125-piece/15-pound minimum, smaller volume not 
permitted. Use L004 to determine ZIP Codes served by each ADC.
    (1) Line 1: use L004.
    (2) Line 2: ``STD FLTS ADC BC/NBC.''
    e. Mixed ADC: required, no minimum.
    (1) Line 1: use L802 for mail entered by the mailer at an ASF or 
BMC, otherwise use L803.
    (2) Line 2: ``STD FLTS BC/NBC WKG.''

M720  Merged Containerization of Periodicals and Standard Mail (A) 
Carrier Route, Automation, and Presorted Rate Mail Packages for the 
Same 5-Digit ZIP Code or 5-Digit Scheme

1.0  PERIODICALS MAIL

1.1  Basic Standards

    Carrier route packages of nonletter-size pieces in a carrier route 
rate mailing may be placed in the same sack or on the same pallet (a 
merged 5-digit sack or pallet, or a merged 5-digit scheme sack or 
pallet) as nonletter-size 5-digit packages from an automation rate 
mailing and nonletter-size 5-digit packages from a Presorted rate 
mailing under the following conditions:
    a. A carrier route mailing must be part of the mailing job.
    b. Carrier route packages may be co-sacked or copalletized with 
automation rate 5-digit packages and Presorted rate 5-digit packages 
only for those 5-digit ZIP Codes listed in the Carrier Route Indicators 
field in the City State Product as eligible for such co-sacking or 
copalletization. Containers of mail sorted in this manner are called 
``merged 5-digit'' sacks or pallets. Containers of mail sorted in this 
manner for which scheme sortation is also performed are called ``merged 
5-digit scheme'' sacks or pallets.
    c. If sortation under this section is performed, merged 5-digit 
sacks or pallets must be prepared for all 5-digit ZIP Codes with an 
indicator in the City State Product that permits such preparation when 
there is enough volume for the 5-digit ZIP Code to prepare such a sack 
under 1.4 or 1.5 or such a pallet under 1.6 or 1.7. In addition, if 
mailers also choose to sort to L001, all possible merged 5-digit scheme 
sacks must be prepared under 1.5 or all possible merged 5-digit scheme 
and 5-digit scheme pallets must be prepared under 1.7.
    d. Mailers must use the Carrier Route Indicators field in the City 
State Product to prepare the mailing and enter the mailing no later 
than 90 days after the release date of the City State Product used.
    e. The pieces in the carrier route mailing, the automation rate 
mailing and the Presorted rate mailing must be part of the same mailing 
job.
    f. Pieces in the automation rate mailing must meet the criteria for 
a flat under C050.3.2 and C820. Pieces in the Presorted rate mailing 
and the carrier route mailing must be nonletter-size.
    g. The carrier route mailing must meet the eligibility criteria in 
E230, the automation rate mailing must meet the eligibility criteria in 
E240, and the Presorted rate mailing must meet the eligibility criteria 
in E230.
    h. For sacked mailings, the rates for pieces in the carrier route 
mailing are based on the criteria in E230, the rates for pieces in the 
automation rate mailing are applied based on the number of pieces in 
the package and the level of package to which they are sorted under 
E240, and the rates for pieces in the Presorted rate mailing are based 
on the number of pieces in the package and the level of sack to which 
they are sorted under E230.
    i. For palletized mailings, the rates are based on the level of 
package and the number of pieces in the package under E230 and E240.
    j. The packages from each separate mailing must be sorted together 
into sacks (co-sacked) under 1.4 and 1.5 or on pallets (copalletized) 
under 1.6 and 1.7 using presort software that is PAVE-certified.
    k. A complete, signed appropriate postage statement(s), using the 
correct USPS form or an approved facsimile, must accompany each mailing 
job prepared under these procedures.
    l. In addition to the applicable postage statement(s), 
documentation prepared by PAVE-certified software must be submitted 
with each co-sacked or copalletized mailing job that describes for each 
sack sortation level and sack or each pallet sortation level and 
pallet, the number of pieces qualifying for each applicable carrier 
route rate, each applicable automation rate, and each applicable 
Presorted rate under P012.
    m. Barcoded sack labels under M032 must be used to label sacks.

1.2  Package Preparation

    Packages must be prepared as follows:
    a. Sacked Mailings. The carrier route mailing must be packaged and 
labeled under M200. The automation rate mailing must be packaged and 
labeled under M820. The Presorted rate mailing must be packaged and 
labeled under M200.
    b. Palletized Mailings. Packages and bundles placed on pallets must 
be prepared under the standards in M045.

1.3  Low Volume Packages in Sacks or on Pallets

    Carrier route and 5-digit packages prepared under M200 and M820 
that contain fewer than six pieces must be placed in sacks under 1.4a 
through d or 1.5 a through e or in 3-digit and SCF sacks, or on pallets 
under 1.6a through e or 1.7a through h, when the publisher determines 
that such preparation improves service. Pieces in such low volume 
packages must claim the applicable basic rate, except that as provided 
under M200.1.4, some firm packages may be eligible for carrier route 
rates and for 5-digit and 3-digit Presorted rates.

1.4  Sack Preparation and Labeling Without Scheme Sort

    Mailers must prepare sacks containing the individual carrier route 
and 5-digit packages from the carrier route, automation rate, and 
Presorted rate mailings in the mailing job in the following manner and 
sequence. All carrier route packages must be placed in sacks under 1.4a 
through c as described below. When sortation under this section is 
performed, merged 5-digit sacks must be prepared for all 5-digit ZIP 
Codes with an indicator in the City State Product that permits such 
preparation when there is enough volume for the 5-digit ZIP Code to 
prepare such a sack under 1.4. Mailers must label sacks according to 
the Line 1 and Line 2 information listed below and under M032. If, due 
to the physical size of the mailpieces, the automation rate pieces are 
considered flat-size under C820 and the carrier route sorted pieces and 
Presorted rate pieces are considered irregular parcels under C050, 
``FLTS'' must be shown as the processing category shown on the sack 
label. If a mailing contains no automation rate pieces and the carrier 
route mailing and the Presorted rate mailing are irregular parcel 
shaped, use ``IRREG'' for the processing category on the contents line 
of the label.
    a. Carrier Route. Required. May only contain carrier route 
packages. Must be prepared when there are 24 or more pieces for the 
same carrier route. Smaller volume not permitted.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).

[[Page 10754]]

    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR'' for basic rate, ``WSH'' 
for high density rate, or ``WSS'' for saturation rate, followed by the 
route type and number.
    b. Merged 5-Digit. Required. Must be prepared only for those 5-
digit ZIP Codes that have an indicator in the City State Product that 
allows carrier route packages to be co-containerized with automation 
rate 5-digit and Presorted rate 5-digit packages. May contain carrier 
route packages, automation rate 5-digit packages, and Presorted rate 5-
digit packages. Must be prepared if there is at least one carrier route 
package for the 5-digit. If there is no carrier route package(s) for a 
5-digit destination, must be prepared when there are 24 or more pieces 
for the same 5-digit destination, optional with one six-piece package 
or at least one package of fewer pieces under 1.3.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR/5D.''
    c. 5-Digit Carrier Routes. Required. May contain only carrier route 
packages for a 5-digit ZIP Code that could not be sacked under 1.4a and 
1.4b. No sack minimum. All carrier route packages remaining after 
preparing sacks under 1.4a and 1.4b must be sacked to this level.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by CR-RTS.''
    d. 5-Digit. Required. May only contain automation rate 5-digit 
packages and Presorted rate 5-digit packages. Must be prepared at 24 or 
more pieces, optional with one six-piece package or at least one 
package of fewer pieces under 1.3.
    (1) Line 1 labeling: use city, state abbreviation, and 5-digit ZIP 
Code destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable and ``FLTS 5D BC/NBC; 
except if there are no automation rate packages in the mailing job, 
label under M200.3.2f.
    e. 3-Digit through Mixed ADC Sacks. Any 5-digit packages remaining 
after preparing sacks under 1.4a through d, and all 3-digit, ADC, and 
Mixed ADC packages, must be sacked and labeled according to the 
applicable requirement under M710.2.0 for co-sacking of automation rate 
and Presorted rate packages, except if there are no automation rate 
packages in the mailing job, sack and label under M200.3.0.

1.5  Optional Sack Preparation and Labeling With Scheme Sort

    When mailers choose to prepare mail under this option they must 
prepare sacks containing the individual carrier route and 5-digit 
packages from the carrier route, automation rate, and Presorted rate 
mailings in the mailing job in the following manner and sequence. All 
carrier route packages must be placed in sacks under 1.5a through d as 
described below. When sortation under this section is performed, merged 
5-digit scheme sacks and merged 5-digit sacks must be prepared for all 
possible 5-digit schemes or 5-digit ZIP Codes as applicable, using L001 
(merged 5-digit scheme sort only) and the Carrier Route Indicators 
field in the City State Product when there is enough volume for the 5-
digit scheme or 5-digit ZIP Code to prepare such sacks under 1.5. 
Mailers must label sacks according to the Line 1 and Line 2 information 
listed below and under M032. If, due to the physical size of the 
mailpieces, the automation rate pieces are considered flat-size under 
C820 and the carrier route sorted pieces and Presorted rate pieces are 
considered irregular parcels under C050, ``FLTS'' must be shown as the 
processing category shown on the sack label. If a mailing job does not 
contain an automation rate mailing and the carrier route mailing and 
the Presorted rate mailing are irregular parcel shaped, use ``IRREG'' 
for the processing category on the contents line of the label.
    a. Carrier Route. Required. May only contain carrier route 
packages. Must be prepared when there are 24 or more pieces for the 
same carrier route. Smaller volume not permitted.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR'' for basic rate, ``WSH'' 
for high density rate, or ``WSS'' for saturation rate, followed by the 
route type and number.
    b. Merged 5-Digit Scheme. Required. May contain carrier route 
packages for any 5-digit ZIP Code(s) in a single scheme listed in L001 
as well as automation rate 5-digit packages and Presorted rate 5-digit 
packages for those 5-digit ZIP Codes in the scheme that are also 
identified in the City State Product as eligible for co-
containerization of carrier route packages and 5-digit packages. Must 
be prepared if there are any carrier route package(s) for the scheme. 
If there is not at least one carrier route package for any 5-digit 
destination in the scheme, preparation of this sack is required at 24 
pieces in 5-digit packages for any of the 5-digit ZIP Codes in the 
scheme that are identified in the City State Product as eligible for 
co-containerization of carrier route packages and 5-digit packages, and 
is optional with one six-piece 5-digit package or at least one 5-digit 
package of fewer pieces for the scheme in L001 under 1.3 (for any ZIP 
Codes that are identified in the City State Product as eligible for co-
containerization of carrier route packages and 5-digit packages). For a 
5-digit ZIP Code(s) in a scheme for which the indicator in the City 
State Product does not allow co-containerization of carrier route 
packages and 5-digit packages, prepare a 5-digit sack(s) for the 
automation rate and Presorted rate packages under 1.5e. For 5-digit ZIP 
Codes not included in a scheme, prepare sacks under 1.5c through f.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR/5D SCH.''
    c. Merged 5-Digit. Required. Must be prepared only for those 5-
digit ZIP Codes that are not part of a scheme and that have an 
indicator in the City State Product that allows carrier route packages 
to be co-containerized with 5-digit packages. May contain carrier route 
packages, automation rate 5-digit packages, and Presorted rate 5-digit 
packages. Must be prepared if there are any carrier route packages for 
the 5-digit. If there is not at least one carrier route package for the 
5-digit destination, preparation of this sack is required at 24 pieces 
in 5-digit packages for the same 5-digit destination, and is optional 
with one six piece package or at least one package of fewer pieces 
under 1.3.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR/5D.''
    d. 5-Digit Carrier Routes. Required. Contains only carrier route 
packages for a 5-digit ZIP Code that could not be sacked under 1.5a 
through c. No sack minimum. All carrier route packages remaining after 
preparing sacks under 1.5a through c must be sacked to this level.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).

[[Page 10755]]

    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR-RTS.''
    e. 5-Digit. Required. May only contain automation rate 5-digit 
packages and Presorted rate 5-digit packages. Must be prepared at 24 or 
more pieces, optional with one six-piece package or at least one 
package of fewer pieces under 1.3.
    (1) Line 1 labeling: use city, state abbreviation, and 5-digit ZIP 
Code destination (see M032 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS 
5D BC/NBC'', except if there are no automation rate packages in the 
mailing job, label under M200.3.2f.
    f. Three-digit through mixed ADC sacks. Any 5-digit packages 
remaining after preparing sacks under 1.5a through e, and all 3-digit, 
ADC, and Mixed ADC packages, must be sacked and labeled according to 
the applicable requirements under M710.2.0 for co-sacking of automation 
rate and Presorted rate packages, except if there are no automation 
rate packages in the mailing job, sack and label under M200.3.0.

1.6  Pallet Preparation and Labeling Without Scheme (L001) Sort

    Mailers must prepare pallets of packages and/or bundles in the 
manner and sequence listed below and under M041. When sortation under 
this section is performed, merged 5-digit pallets must be prepared for 
all 5-digit ZIP Codes with an indicator in the City State Product that 
permits such preparation when there is enough volume for the 5-digit 
ZIP Code to prepare such a pallet under 1.6. Mailers must label pallets 
according to the Line 1 and Line 2 information listed below and under 
M031. If, due to the physical size of the mailpieces, the automation 
rate pieces are considered flat-size under C820 and the carrier route 
sorted pieces and Presorted rate pieces are considered irregular 
parcels under C050, ``FLTS'' must be shown as the processing category 
shown on the sack label. If a mailing contains no automation rate 
pieces and the carrier route mailing and the Presorted rate mailing are 
irregular parcel shaped, use ``IRREG'' for the processing category on 
the contents line of the label.
    a. Merged 5-Digit. Required. May be prepared only for those 5-digit 
ZIP Codes with an indicator in the City State Product that permits 
carrier route packages to be co-containerized with automation rate 5-
digit packages and Presorted rate 5-digit packages. May contain carrier 
route packages and bundles, automation rate 5-digit packages and 
bundles, and Presorted rate 5-digit packages and bundles.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR/5D.''
    b. 5-Digit Carrier Routes. Required. May contain only carrier route 
packages and bundles for a 5-digit ZIP Code that does not have an 
indicator in the City State Product allowing merged 5-digit 
preparation.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    c. 5-Digit. Required. May contain only automation rate and 
Presorted rate 5-digit packages and bundles for a 5-digit ZIP Code that 
does not have an indicator in the City State Product allowing co-
containerization of carrier route packages and 5-digit packages.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``5D,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    d. 3-Digit. Optional. May contain carrier route, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``3D,'' followed by ``DDU'' if 
DDU rates are claimed, followed by ``DSCF'' if SCF rates are claimed, 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail, and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    e. SCF. Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``SCF,'' followed by ``DDU'' if 
DDU rates are claimed, followed by ``DSCF'' if SCF rates are claimed, 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail, and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    f. ADC. Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L004.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``ADC,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.

1.7  Optional Pallet Preparation and Labeling With Scheme (L001) 
Sort

    When mailers choose to prepare mail under this option they must 
prepare pallets of packages and/or bundles in the manner and sequence 
listed below and under M041. When sortation under this option is 
performed, mailers must prepare all merged 5-digit scheme, 5-digit 
scheme, and merged 5-digit pallets that are possible in the mailing 
based on the volume of mail to the destination using L001 and/or the 
City State Product as applicable. Mailers must label pallets according 
to the Line 1 and Line 2 information listed below and under M031. If, 
due to the physical size of the mailpieces, the automation rate pieces 
are considered flat-size under C820 and the carrier route sorted pieces 
and Presorted rate pieces are considered irregular parcels under C050, 
``FLTS'' must be shown as the processing category shown on the sack 
label. If a mailing contains no automation rate pieces and the carrier 
route mailing and the Presorted rate mailing are irregular parcel 
shaped, use ``IRREG'' for the processing category on the contents line 
of the label.
    a. Merged 5-Digit Scheme. Required. May contain carrier route 
packages and bundles for all carrier routes in an L001 scheme as well 
as automation rate 5-digit packages and bundles and Presorted rate 5-
digit packages and bundles for those 5-digit ZIP Codes in the scheme 
that also have an indicator in the City State Product that that permits 
carrier route packages to be co-containerized with automation rate 5-
digit and Presorted rate 5-digit packages.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CR/5D SCHEME.''
    b. 5-Digit Scheme. Required. May contain only 5-digit packages and 
bundles of automation rate and Presorted rate mail for the same 5-digit 
scheme under L001 for ZIP Codes in the scheme that do not have an 
indicator in the City State Product that permits

[[Page 10756]]

carrier route packages to be co-containerized with 5-digit packages.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``5D,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail, followed by ``SCHEME'' or ``SCH.''
    c. Merged 5-Digit. Required. May contain carrier route packages and 
bundles, automation rate 5-digit packages and bundles, and Presorted 
rate 5-digit packages and bundles for those 5-digit ZIP Codes that are 
not part of a scheme and that have an indicator in the City State 
Product that allows co-containerization of carrier route packages and 
5-digit packages.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or IRREG'' as applicable, followed by ``CR/5D.''
    d. 5-Digit Carrier Routes. Required. May contain only carrier route 
rate packages and bundles for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    e. 5-Digit. Required. May contain only automation rate 5-digit 
packages and bundles and Presorted rate 5-digit packages and bundles 
for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``5D,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    f. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or IRREG'' as applicable, followed by ``3D,'' followed by ``DDU'' if 
DDU rates are claimed, followed by ``DSCF'' if SCF rates are claimed, 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail, and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    g. SCF. Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``SCF,'' followed by ``DDU'' if 
DDU rates are claimed, followed by ``DSCF'' if SCF rates are claimed, 
followed by ``BARCODED'' or ``BC'' if the pallet contains automation 
rate mail, and followed by ``NONBARCODED'' or ``NBC'' if the pallet 
contains Presorted rate mail.
    h. ADC. Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L004.
    (2) Line 2: ``PER'' or ``NEWS'' as applicable, followed by ``FLTS'' 
or ``IRREG'' as applicable, followed by ``ADC,'' followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
2.0  STANDARD MAIL (A)

2.1  Basic Standards

    Carrier route packages of flat-size pieces in a carrier route rate 
mailing may be placed in the same sack or on the same pallet (a merged 
5-digit sack or pallet, or a merged 5-digit scheme sack or pallet) as 
flat-size 5-digit packages from an automation rate mailing and flat-
size 5-digit packages from a Presorted rate mailing under the following 
conditions:
    a. A carrier route mailing must be part of the mailing job.
    b. Carrier route rate packages may be co-sacked or copalletized 
with automation rate 5-digit packages and Presorted rate 5-digit 
packages only for those 5-digit ZIP Codes listed in the Carrier Route 
Indicators field in the City State Product as eligible for such co-
sacking or copalletization. Containers of mail sorted in this manner 
are called ``merged 5-digit'' sacks or pallets. Containers of mail 
sorted in this manner for which scheme sortation is also performed are 
called ``merged 5-digit scheme'' sacks or pallets.
    c. If sortation under this section is performed, merged 5-digit 
sacks or pallets must be prepared for all 5-digit ZIP Codes with an 
indicator in the City State Product that permits such preparation when 
there is enough volume for the 5-digit ZIP Code to prepare such a sack 
under 2.3 and 2.4 or 2.5 or such a pallet under 2.6 or 2.7. In 
addition, if mailers also choose to sort to L001, all possible merged 
5-digit scheme sacks must be prepared under 2.5 or all possible merged 
5-digit scheme and 5-digit scheme pallets must be prepared under 2.7.
    d. Mailers must use the Carrier Route Indicators field in the City 
State Product to prepare the mailing and enter the mailing no later 
than 90 days after the release date of the City State Product used.
    e. The pieces in the carrier route rate mailing, the automation 
rate mailing, and the Presorted rate mailing must be part of the same 
mailing job and all three mailings must be reported on the same postage 
statement or same consolidated postage statement.
    f. Pieces in the automation rate mailing must meet the criteria for 
a flat under C050.3.2 and C820. Pieces in the Presorted rate mailing 
and the carrier route mailing must meet the criteria for a flat under 
C050.3.1.
    g. The carrier route mailing must meet the eligibility criteria in 
E620, the automation rate mailing must meet the eligibility criteria in 
E640, and the Presorted rate mailing must meet the eligibility criteria 
in E620.
    h. For sacked mailings, the rates for pieces in the carrier route 
mailing are based on the criteria in E620, the rates for pieces in the 
automation rate mailing are applied based on the number of pieces in 
the package and the level of package to which they are sorted under 
E640, and the rates for pieces in the Presorted rate mailing are based 
on the number of pieces in the package and the level of sack to which 
they are sorted under E620.
    i. For palletized mailings, the rates are based on the level of 
package that the pieces are contained in under E620 and E640.
    j. The packages from each separate mailing must be sorted together 
into sacks (co-sacked) under 2.3 and 2.4 or 2.5, or on pallets 
(copalletized) under 2.6 or 2.7 using presort software that is PAVE-
certified or MAC-certified.
    k. A complete, signed postage statement or consolidated postage 
statement, using the correct USPS form or an approved facsimile, must 
accompany each mailing job prepared under these procedures.
    l. In addition to the applicable postage statement, documentation 
prepared by PAVE-certified or MAC-certified software must be submitted 
with each co-sacked or copalletized mailing job that describes for each 
sack sortation level and sack, or each pallet sortation level and 
pallet, the number of pieces qualifying for each applicable carrier 
route rate, each applicable automation

[[Page 10757]]

rate, and each applicable Presorted rate under P012.
    m. Barcoded sack labels under M032 must be used to label sacks.

2.2  Package Preparation

    Packages must be prepared as follows:
    a. Sacked Mailings. The carrier route mailing must be packaged and 
labeled under M620. The automation rate mailing must be packaged and 
labeled under M820. The Presorted rate mailing must be packaged and 
labeled under M610.
    b. Palletized Mailings. Packages and bundles placed on pallets must 
be prepared under the standards in M045.

2.3  Sacking Under 125-Piece or 15-Pound Rules

    When the minimum quantity of 125-pieces or 15-pounds of mail is 
specified for a sack sortation level in 2.4, the provisions of M820.4.2 
apply.

2.4  Sack Preparation and Labeling Without Scheme Sort

    Mailers must prepare sacks containing the individual carrier route 
and 5-digit packages from the carrier route rate, automation rate, and 
Presorted rate mailings in the mailing job in the following manner and 
sequence. All carrier route packages must be placed in sacks under 2.4a 
through c as described below. When sortation under this section is 
performed, merged 5-digit sacks must be prepared for all 5-digit ZIP 
Codes with an indicator in the City State Product that permits such 
preparation when there is enough volume for the 5-digit ZIP Code to 
prepare such a sack under 2.4. Mailers must label sacks according to 
the Line 1 and Line 2 information listed below and under M032.
    a. Carrier Route. Required. May only contain carrier route 
packages. Must be prepared when there are 125 pieces or 15 pounds of 
pieces for the same carrier route. Smaller volume not permitted.
    (1) Line 1 labeling: use city, state abbreviation, and 5-digit ZIP 
Code destination (see M032 for military mail).
    (2) Line 2 labeling: ``STD FLTS'' followed by ``ECRLOT,'' 
``ECRWSH.'' or ``ECRWSS'' as applicable for basic, high density, and 
saturation rate mail, followed by the route type and number.
    b. Merged 5-Digit. Required. Must be prepared only for those 5-
digit ZIP Codes that have an indicator in the City State Product that 
allows carrier route packages to be co-containerized with automation 
rate 5-digit packages and Presorted rate 5-digit packages. May contain 
carrier route rate packages, automation rate 5-digit packages, and 
Presorted rate 5-digit packages. Must be prepared if there is at least 
one carrier route package for the 5-digit ZIP Code. If there is no 
carrier route package(s) for a 5-digit destination, must be prepared 
when there are at least 125 pieces or 15 pounds of pieces in 5-digit 
packages for the same 5-digit destination (smaller volume not 
permitted).
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS CR/5D.''
    c. 5-Digit Carrier Routes. Required. May contain only carrier route 
packages for a 5-digit ZIP Code that could not be sacked under 2.4a and 
b. No sack minimum. All carrier route packages remaining after 
preparing sacks under 2.4a and b must be sacked to this level.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS CR-RTS.''
    d. 5-Digit. Required. May only contain automation rate 5-digit 
packages and Presorted rate 5-digit packages. Must be prepared when 
there are at least 125 pieces or 15 pounds of pieces for the 5-digit 
ZIP Code. Smaller volume not permitted.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS 5D BC/NBC,'' except if there are no 
automation rate packages in the mailing job use ``STD FLTS 5D NON BC.''
    e. Three-digit through Mixed ADC Sacks. Any 5-digit packages 
remaining after preparing sacks under 2.4a through d, and all 3-digit, 
ADC, and Mixed ADC packages, must be sacked and labeled according to 
the applicable requirements under M710.3.0 for co-sacking of automation 
rate and Presorted rate packages, except if there are no automation 
rate packages in the mailing job, sack and label under M610.

2.5  Optional Sack Preparation and Labeling With Scheme Sort

    When mailers choose to prepare mail under this option they must 
prepare sacks containing the individual carrier route and 5-digit 
packages from the carrier route rate, automation rate, and Presorted 
rate mailings in the mailing job in the following manner and sequence. 
All carrier route packages must be placed in sacks under 2.5a through d 
as described below. When sortation under this section is performed, 
merged 5-digit scheme sacks and merged 5-digit sacks must be prepared 
for all possible 5-digit schemes or 5-digit ZIP Codes as applicable, 
using L001 (merged 5-digit scheme sort only) and the Carrier Route 
Indicators field in the City State Product when there is enough volume 
for the 5-digit scheme or 5-digit ZIP Code to prepare such sacks under 
2.5. Mailers must label sacks according to the Line 1 and Line 2 
information listed below and under M032.
    a. Carrier Route. Required. May only contain carrier route 
packages. Must be prepared when there are 125 pieces or 15 pounds of 
pieces for the same carrier route. Smaller volume not permitted.
    (1) Line 1 labeling: use city, state abbreviation, and 5-digit ZIP 
Code destination (see M032 for military mail).
    (2) Line 2 labeling: ``STD FLTS'' followed by ``ECRLOT,'' 
``ECRWSH.'' or ``ECRWSS'' as applicable for basic, high density, and 
saturation rate mail, followed by the route type and number.
    b. Merged 5-Digit Scheme. Required. May contain carrier route 
packages for any 5-digit ZIP Code(s) in a single scheme listed in L001 
as well as automation rate 5-digit packages and Presorted rate 5-digit 
packages for those 5-digit ZIP Codes in the scheme that are also 
identified in City State Product as eligible for co-containerization of 
carrier route packages and 5-digit packages. Must be prepared if there 
any carrier route packages for the 5-digit scheme. If there is not at 
least one carrier route package for any 5-digit destination in the 
scheme, preparation of this sack is required when there are at least 
125 pieces or 15 pounds of pieces in 5-digit packages for any of the 5-
digit ZIP Codes in the scheme that are identified in the City State 
Product as eligible for co-containerization of carrier route packages 
and 5-digit packages (smaller volume not permitted). For a 5-digit ZIP 
Code(s) in a scheme for which the indicator in the City State Product 
does not allow co-containerization of carrier route packages and 5-
digit packages, prepare a 5-digit sack(s) for the automation rate and 
Presorted rate packages under 2.5e. For 5-digit ZIP Codes not included 
in a scheme, prepare sacks under 2.5c through f.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``STD FLTS CR/5D SCH.''
    c. Merged 5-Digit. Required. Must be prepared only for those 5-
digit ZIP Codes that are not part of a scheme and that have an 
indicator in the City State Product that allows carrier route packages 
to be co-containerized with 5-digit packages. May contain carrier route 
packages, automation rate 5-digit packages, and Presorted rate 5-digit 
packages. Must be prepared if there are any carrier route packages for 
the 5-digit. If there is not at least one carrier route package for the 
5-digit destination, must be prepared when there are at least 125 
pieces or 15 pounds of pieces in 5-digit packages for the same 5-digit

[[Page 10758]]

destination (smaller volume not permitted).
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS CR/5D.''
    d. 5-Digit Carrier Routes. Required. Contains only carrier route 
packages for a 5-digit ZIP Code that could not be sacked under 2.5a 
through c. No sack minimum. All carrier route packages remaining after 
preparing sacks under 2.5a through c must be sacked to this level.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS CR-RTS.''
    e. 5-Digit. Required. May only contain automation rate 5-digit 
packages and Presorted rate 5-digit packages. Must be prepared when 
there are at least 125 pieces or 15 pounds of pieces for the 5-digit 
ZIP Code. Smaller volume not permitted.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M032 for military mail).
    (2) Line 2: ``STD FLTS 5D BC/NBC,'' except if there are no 
automation rate packages in the mailing job use ``STD FLTS 5D NON BC.''
    f. Three-digit through Mixed AADC Sacks. Any 5-digit packages 
remaining after preparing sacks under 2.5 a through e, and all 3-digit, 
ADC, and Mixed ADC packages, must be sacked and labeled according to 
the applicable requirements under M710.3.0 for co-sacking of automation 
rate and Presorted rate packages, except if there are no automation 
rate packages in the mailing job, sack and label under M610.

2.6  Pallet Preparation and Labeling Without Scheme (L001) Sort

    Mailers must prepare pallets of packages and/or bundles in the 
manner and sequence listed below and under M041. When sortation under 
this option is performed, merged 5-digit pallets must be prepared for 
all 5-digit ZIP Codes with an indicator in the City State Product that 
permits such preparation when there is enough volume for the 5-digit 
ZIP Code to prepare such a pallet under 2.6. Mailers must label pallets 
according to the Line 1 and Line 2 information listed below and under 
M031.
    a. Merged 5-Digit. Required. May be prepared only for those 5-digit 
ZIP Codes with an indicator in the City State Product that permits 
carrier route packages to be co-containerized with automation rate 5-
digit packages and Presorted rate 5-digit packages. May contain carrier 
route rate packages and bundles, automation rate 5-digit packages and 
bundles, and Presorted rate 5-digit packages and bundles.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS CR/5D.''
    b. 5-Digit Carrier Routes. Required. May contain only carrier route 
rate packages and bundles for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS,'' followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    c. 5-Digit. Required. May contain automation rate 5-digit packages 
and bundles and automation rate 5-digit packages and bundles for the 
same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    d. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D,'' followed by ``DDU'' if DDU rates are 
claimed, followed by ``DSCF'' if DSCF rates are claimed, followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    e. SCF: Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column C
    (2) Line 2: ``STD FLTS SCF;'' followed by ``DDU'' if DDU rates are 
claimed, followed by ``DSCF'' if DSCF rates are claimed; followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail; and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    f. If DBMC rates are not claimed: Destination BMC. Required. May 
contain carrier route rate, automation rate, and Presorted rate 
packages and bundles. Sort ADC packages and bundles to BMC pallets 
based on the ``label to'' ZIP Code shown for the ADC of the package or 
bundle in L004.
    (1) Line 1: use L601.
    (2) Line 2: ``STD FLTS BMC,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    g. If DBMC rates are claimed: Destination ASF/BMC. May contain 
carrier route rate, automation rate, and Presorted rate packages and 
bundles. Destination ASF sortation allowed and required only if DBMC 
rate is claimed for mail deposited at an ASF, otherwise sort to 
Destination BMC. Sort ADC packages and bundles to ASF/BMC pallets based 
on the ``label to'' ZIP Code shown for the ADC of the package or bundle 
in L004.
    (1) Line 1: use L602.
    (2) Line 2: ``STD FLTS,'' followed by ``ASF'' or ``BMC as 
applicable; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate mail.

2.7  Optional Pallet Preparation and Labeling With Scheme (L002) 
Sort

    When mailers choose to prepare mail under this option they must 
prepare pallets of packages and/or bundles in the manner and sequence 
listed below and under M041. When sortation under this option is 
performed, mailers must prepare all merged 5-digit scheme, 5-digit 
scheme, and merged 5-digit pallets that are possible in the mailing 
based on the volume of mail to the destination using L001 and/or the 
City State Product as applicable. Mailers must label pallets according 
to the Line 1 and Line 2 information listed below and under M031.
    a. Merged 5-Digit Scheme. Required. May contain carrier route rate 
packages and bundles for all carrier routes in an L001 scheme as well 
as automation rate 5-digit packages and bundles and Presorted rate 5-
digit packages and bundles for those 5-digit ZIP Codes in the scheme 
that also have an indicator in the City State Product that permits 
carrier route packages to be co-containerized with automation rate 5-
digit and Presorted rate 5-digit packages. For 5-digit ZIP Codes in a 
scheme for which the indicator in the Carrier Route Indicators field 
does not allow co-containerization of carrier route and 5-digit 
packages, begin preparing pallets under 2.7b (5-digit scheme pallet). 
For 5-digit ZIP Codes not included in a scheme, begin preparing pallets 
for carrier route and 5-digit packages under 2.7c (merged 5-digit 
pallet).
    (1) Line 1: labeling: use L001, Column B
    (2) Line 2: ``STD FLTS CR/5D SCHEME.''
    b. 5-Digit Scheme. Required. May contain 5-digit packages and 
bundles of automation rate and 5-digit Presorted rate mail for the same 
5-digit scheme under L001 for ZIP Codes in the scheme that do not have 
an indicator in the City State Product that permits co-

[[Page 10759]]

containerization of carrier route packages and 5-digit packages.
    (1) Line 1: use L001, Column B.
    (2) Line 2: STD FLTS 5D,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, followed by ``NONBARCODED'' 
or ``NBC'' if the pallet contains Presorted rate mail, followed by 
``SCHEME'' or ``SCH.''
    c. Merged 5-Digit. Required. May contain carrier route rate 
packages and bundles, automation rate 5-digit packages and bundles, and 
Presorted rate 5-digit packages and bundles for those 5-digit ZIP Codes 
that are not part of a scheme and that have an indicator in the City 
State Product that allows co-containerization of carrier route packages 
and 5-digit packages.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS CR/5D.''
    d. 5-Digit Carrier Routes. Required. May contain only carrier route 
rate packages and bundles for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS,'' followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    e. 5-Digit. Required. May contain automation rate 5-digit packages 
and bundles and Presorted rate 5-digit packages and bundles for the 
same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    f. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD FLTS 3D,'' followed by ``DDU'' if DDU rates are 
claimed, followed by ``DSCF'' if DSCF rates are claimed, followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail, and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    g. SCF: Required. May contain carrier route rate, automation rate, 
and Presorted rate packages and bundles.
    (1) Line 1: use L002, Column C
    (2) Line 2: ``STD FLTS SCF;'' followed by ``DDU'' if DDU rates are 
claimed, followed by ``DSCF'' if DSCF rates are claimed; followed by 
``BARCODED'' or ``BC'' if the pallet contains automation rate mail; and 
followed by ``NONBARCODED'' or ``NBC'' if the pallet contains Presorted 
rate mail.
    h. If DBMC rates are not claimed: Destination BMC. Required. May 
contain carrier route rate, automation rate, and Presorted rate 
packages and bundles. Sort ADC packages and bundles to BMC pallets 
based on the ``label to'' ZIP Code shown for the ADC of the package or 
bundle in L004.
    (1) Line 1: use L601.
    (2) Line 2: ``STD FLTS BMC,'' followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail, and followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
    i. If DBMC rates are claimed: Destination ASF/BMC. May contain 
carrier route rate, automation rate, and Presorted rate packages and 
bundles. Destination ASF sortation allowed and required only if DBMC 
rate is claimed for mail deposited at an ASF, otherwise sort to 
Destination BMC. Sort ADC packages and bundles to ASF/BMC pallets based 
on the ``label to'' ZIP Code shown for the ADC of the package or bundle 
in L004.
    (1) Line 1: use L602.
    (2) Line 2: ``STD FLTS,'' followed by ``ASF'' or ``BMC'' as 
applicable; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; and followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate mail.

M800 All Automation Mail

* * * * *

M820  Flat-Size Mail

1.0  BASIC STANDARDS
    [Revise the heading and contents of 1.9 to provide for preparation 
under M710 to read as follows:]

1.9  Co-Traying, Co-Sacking, or Co-Palletizing With Presorted Rate 
Mail

    Packages prepared under M820 1.0 through 4.0 may be co-trayed or 
co-sacked with Presorted rate mail that is part of the same mailing job 
and mail class at all levels of tray or sack under the provisions of 
M710.
    [Add new 1.10 to provide for preparation under M720 to read as 
follows:]

1.10  Merged Containerization With Carrier Route and Presorted Rate 
Mail

    Under M720, 5-digit automation rate packages prepared under 
M820.1.0, M820.3.0 and M820.4.0 may be co-sacked or copalletized with 
both carrier route rate packages and 5-digit Presorted rate packages in 
merged 5-digit sacks or pallets, or in merged 5-digit scheme sacks or 
pallets, for those 5-digit ZIP Codes with an indicator in the Carrier 
Route Indicators field of the City State Product that shows such 
combination is permissible. Packages co-sacked or copalletized under 
M720 must be part of the same mailing job and mail class.

P012  Documentation

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


2.4    Sortation Level

    [Amend 2.4 by adding new indicator ``M5D'' to identify merged 5-
digit sacks and pallets, by adding new indicator ``M5DS'' to identify 
merged 5-digit scheme sacks and pallets, and by adding ``and pallets'' 
to the description of the sortation level for 5-digit scheme carrier 
routes 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
------------------------------------------------------------------------
 
                  *        *        *        *        *
5-Digit Scheme Carrier Routes (sacks and    CR5S
 pallets, Periodicals flats and irregular
 parcels, Standard Mail (A) flats).
 
                  *        *        *        *        *
Merged 5-Digit (sacks and pallets,         M5D
 Periodicals flats and irregular parcels,
 Standard Mail (A) flats).
Merged 5-Digit Scheme (sacks and pallets,  M5DS
 Periodicals flats and irregular parcels,
 Standard Mail (A) flats).
------------------------------------------------------------------------

2.5 Combined, Copalletized, and Merged Mailings

    [Amend 2.5 by amending the heading and by replacing ``M045'' with 
``M045 and M720'' in the first sentence to read as follows:]
* * * * *
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-4535 Filed 2-28-00; 8:45 am]
BILLING CODE 7710-12-P