[Federal Register Volume 65, Number 153 (Tuesday, August 8, 2000)]
[Rules and Regulations]
[Pages 48385-48391]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19579]


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POSTAL SERVICE

39 CFR Part 111


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

AGENCY: Postal Service.

ACTION: Amended final rule.

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

SUMMARY: On May 19, 2000, the Postal Service published in the Federal 
Register (65 FR 31815) a final rule setting forth Domestic Mail Manual 
(DMM) standards adopted by the Postal Service requiring mailers to 
utilize one Labeling List (L605) for palletized mailings of Standard 
Mail (A) packages of flats, letter trays, and sacks prepared on 
pallets, regardless of whether the mail is prepared for entry at 
destination bulk mail center (DBMC) rates; to require mailers to 
utilize Labeling List L605 for Standard Mail (A) and Standard Mail (B) 
machinable parcels prepared in sacks or on pallets for pieces claimed 
at DBMC rates; to implement package reallocation between auxiliary 
service facilities (ASFs) and BMCs for Standard Mail (A) packages of 
flats placed on pallets; and to utilize Labeling List L605 for the 
preparation of all Standard Mail (B) that is claimed at DBMC rates and 
for Bound Printed Matter other than machinable parcels prepared on 
pallets.
    This document amends the final rule by requiring mailers to utilize 
revised Labeling List L602--ASFs and Labeling List L601--Bulk Mail 
Centers instead of L605 for palletized mailings of Standard Mail (A) 
and Bound Printed Matter packages of flats, letter trays (Standard Mail 
(A) only), and sacks prepared on pallets, regardless of whether the 
mail is prepared for entry at DBMC rates. Labeling Lists L601 and L602 
will be used together for Standard Mail (A) and Standard Mail (B) 
machinable parcels prepared in sacks or on pallets when DBMC rates are 
claimed for mail deposited at both ASFs and BMCs. Only Labeling List 
L601 will be used to prepare machinable parcels when no mail for ASFs 
is claimed at DBMC rates.

DATES: Effective Date: December 15, 2000.
    Implementation Date: It is anticipated that the implementation of 
the rates resulting from the R2000-1 rate case will be sometime in 
early January 2001. Compliance with this rule will be required on the 
date that coincides with implementation of the rates resulting from the 
R2000-1 rate case, and notice of that implementation date will be 
published in the Federal Register. Until such notice is published, 
compliance with this rule is optional beginning on December 15, 2000.

FOR FURTHER INFORMATION CONTACT: Karen A. Magazino, (202) 268-3854 or 
Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: On May 19, 2000, the Postal Service 
published a final rule (65 FR 31815) that required mailers to use 
Labeling List L605 for all Standard Mail (A) flats, letter trays, and 
sacks prepared on pallets regardless of whether DBMC rates are claimed. 
This amended final rule will instead require mailers to use revised 
Labeling List L602--ASFs when there is sufficient volume to create an 
ASF pallet, and Labeling List L601--Bulk Mail Centers when there is not 
sufficient volume for an ASF pallet to be prepared.
    This will ensure that the eight ASFs always are included in presort 
logic hierarchy and that ASF pallets are prepared when the volume 
warrants and will also prevent mail for an ASF and/or its parent BMC 
service area from falling to sacks. For trays and sacks on pallets it 
will also prevent mail from falling to a mixed BMC pallet when there is 
sufficient volume to prepare a DBMC pallet using Labeling List L601 
although the volume does not warrant a separate ASF pallet.
    Using L601 and L602 together will benefit the Postal Service and 
mailers by reducing the volume of sacked mail likely to be deposited at 
origin. It will also provide more opportunities for mailers to create 
ASF and BMC pallets that can be drop shipped or cross-docked to 
destination entry facilities, including BMC pallets that contain mail 
for offshore ZIP Codes, because L601 includes those ZIP Codes within 
their respective BMC service areas.
    As noted in 65 FR 31815 (May 19, 2000), mail for offshore ZIP Codes 
and for ASF ZIP Codes prepared on destination BMC pallets using L601 
will continue to be ineligible for DBMC rates.

Utilization of Labeling Lists L601 and Revised L602 for Preparation 
of Standard Mail (A)

    If mailers were to use Labeling List L605, as provided in the 
original final rule, when there is not sufficient volume to warrant 
creation of an ASF pallet, then packages of Standard Mail (A) flats for 
the ASF would be required to be prepared in sacks. Trays or sacks would 
fall to mixed BMC pallets. In addition, if mailers were to use L605 
when there is insufficient volume to prepare an ASF pallet or a 
separate pallet for the parent BMC, then packages of flats will fall to 
sacks, and trays and sacks will fall to mixed BMC pallets, even if 
there is sufficient volume to create a DBMC pallet by combining the 
mail for the ASF and the parent BMC. This would occur because the ASF 
service area ZIP Codes are not included with the parent BMC service 
areas on Labeling List L605 as they are on Labeling List L601.
    Upon further review of the standards prescribed in the original 
final rule, the Postal Service, presort software vendors, and mailers 
who are members of the MTAC Presort Optimization Work Group that 
originally proposed these changes agreed that the standards would not 
be optimal. It was agreed that the original intent was to create ASF 
pallets when volume warranted and to allow mailers to place offshore 
mail with mail for the parent BMC. Using revised Labeling List L602, 
which includes only the ASFs, in conjunction with Labeling List L601 
will ensure that this outcome is fully realized and will have the added 
benefit of keeping packages of flats from falling to sacks and sacks 
and trays from falling to mixed BMC pallets when volume warrants.
    The following are examples of outcomes that would result from using 
Labeling List L605, as prescribed in the original final rule:
    (1) A mailing contains 220 pounds of mail for the Buffalo ASF 
service area and 300 pounds for the Pittsburgh BMC service area. All 
mail would fall to sacks if presort software parameters are set at the 
required minimum pallet weight of 500 pounds.
    (2) A mailing includes 50 pounds of mail for the Buffalo ASF 
service area and 600 pounds for the Pittsburgh BMC service area. A 
Pittsburgh BMC pallet would be prepared, but the Buffalo mail would 
fall to sacks.
    (3) A mailing contains 700 pounds of mail for Buffalo ASF and 200 
pounds for Pittsburgh BMC. A Buffalo ASF pallet would be prepared and 
the Pittsburgh mail would fall to sacks.
    In lieu of using Labeling List L605, and instead using Labeling 
Lists L602 (revised) and L601 together, as set forth in this amended 
final rule, all mail in examples (1) and (2) above will be prepared on 
a destination BMC Pittsburgh pallet and no mail will be prepared in 
sacks. This will provide

[[Page 48386]]

mailers with greater opportunities to drop ship pallets to destination 
BMCs and move mail for ASF service areas closer to its destination, 
even though the mail for the ASF service area would not be entitled to 
the DBMC rates. Mailers would be unlikely to drop ship this mail if it 
were sacked. This will also allow the Postal Service to cross-dock 
pallets that are not drop shipped and avoid additional sack handlings. 
In example (3) above, when using L602 and L601, the ASF pallet will 
still be prepared and the mail for the BMC will fall to sacks unless 
the mailer chose to use package reallocation to protect the BMC pallet. 
Using package reallocation with the pallet minimum set at 500 pounds, 
the ASF pallet would be eliminated and the ASF mail would be placed on 
a destination BMC pallet with other mail for the BMC service area (mail 
for the ASF ZIP Codes would be ineligible for DBMC rates).
    Labeling List L601 will continue to be applicable for Standard Mail 
(A) machinable parcels, except that revised Labeling List L602 will be 
used when DBMC rates are claimed for machinable parcels deposited at 
ASFs.
    The ZIP Code ranges for DBMC rate eligibility, currently in 
Labeling List L602, will appear instead in DMM Module E as prescribed 
in the original final rule.

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

    This amended final rule does not change the standards in 65 FR 
31815 (May 19, 2000) that allow mailers to choose to reallocate 
packages from the ASF pallet to protect mail for the parent BMC service 
area using the parent-child table in DMM M045, Exhibit 6.1 and PAVE-
certified presort software.

Preparation of Standard Mail (B)

    This amended final rule also changes the standards contained in 65 
FR 31815 (May 19, 2000) for palletized Bound Printed Matter. Bound 
Printed Matter will be prepared using L601 and revised L602 together 
instead of L605 for sortation of packages of flats and sacks to both 
BMC and ASF pallets. L601 will continue to be used for sortation of 
Bound Printed Matter machinable parcels both in sacks and on pallets.
    For Parcel Post (Parcel Select) machinable parcels, mailers 
claiming the DBMC rates may continue the current practice of opting to 
sort mail using L601 (BMC sortation only) under the condition that mail 
for 3-digit ZIP Codes served by an ASF in Exhibit E652.1.3d is not 
eligible for DBMC rates, nor is mail for 3-digit ZIP Codes that do not 
appear on Exhibit E652.1.3d. Revised L602 must be used when Parcel 
Select mail for an ASF is claimed at the DBMC rates.
    L605 will continue to be used for BMC Presort and OBMC Presort 
mailings of nonmachinable Parcel Post as stated in the original final 
rule. L605 delineates the ASF service areas and also includes the ZIP 
Codes for the offshore destinations within their respective BMC service 
areas. L601 will continue to be required for machinable parcels 
claiming BMC Presort and OBMC Presort rates.
    This amended final rule, published below in its entirety for ease 
of use, affects only the following DMM sections published in 65 FR 
31815 (May 22, 2000): E651.5.5a; E652.1.1a; E652.1.3a; L601 (heading 
and introductory paragraph revised); current L602 (this list was 
deleted in 65 FR 31815 (May 22, 2000)) (heading, introductory 
paragraph, and contents revised); L605 (heading revised, introductory 
paragraph deleted); M011.1.2n; M045.4.1e; M045.4.2b and c; M073.1.6a 
(2) and (3); M610.5.2b and c; and M630.6.2b and c.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    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(c), the Postal Service hereby adopts the 
following amendments to the Domestic Mail Manual (DMM), which is 
incorporated by reference in the Code of Federal Regulations (see 39 
CFR part 111).

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

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

Domestic Mail Manual (DMM)

E  ELIGIBILITY

* * * * *

E650  Destination Entry

E651  Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
5.0  DBMC DISCOUNT
    (Amend 5.1 by replacing ``L602'' with ``E651.5.0 Exhibit 5.1'' to 
read as follows:)

5.1  Definition

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

Exhibit 5.1  BMC/ASF--DBMC RATES

------------------------------------------------------------------------
       Eligible destination ZIP Codes               Entry facility
------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127,     BMC NEW JERSEY NJ 00102
 340.
010-067, 120-123, 128, 129.................  BMC SPRINGFIELD MA 05500
130-136, 140-149...........................  ASF BUFFALO NY 140
150-168, 260-266, 439-447..................  BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199..................  BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268.......  BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376.............  BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368,     BMC ATLANTA GA 31195
 373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,   BMC JACKSONVILLE FL 32099
 347, 349.
369-372, 375, 380-397, 700, 701, 703-705,    BMC MEMPHIS TN 38999
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-    BMC CINCINNATI OH 45900
 427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497..................  BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689...  BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............  BMC MPLS/ST PAUL MN 55202
570-577....................................  ASF SIOUX FALLS SD 570
565, 567, 580-588..........................  ASF FARGO ND 580
590-599, 821...............................  ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600-   BMC CHICAGO IL 60808
 611, 613.

[[Page 48387]]

 
420, 423, 424, 475-479, 614-620, 622-631,    BMC ST LOUIS MO 63299
 633-639.
640, 641, 644-658, 660-662, 664-679, 739...  BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730
 749.
706, 710-712, 718, 733, 747, 750-799, 885..  BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831.............  BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979.......  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935....  BMC LOS ANGELES CA 90901
894, 895, 897, 936-966.....................  BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........  BMC SEATTLE WA 98000
------------------------------------------------------------------------

    (Delete current 5.2 and 5.3 and replace with new 5.2 through 5.5. 
Redesignate current 5.4 and 5.5 as 5.6 and 5.7.)

5.2  General Eligibility

    Pieces in a mailing that meet the standards in 1.0 through 5.0 are 
eligible for the DBMC rate when they meet all of the following 
conditions: (1) Are deposited at a BMC or ASF; (2) are addressed for 
delivery to one of the 3-digit ZIP Codes served by the BMC or ASF where 
deposited that are listed in Exhibit 5.1; and (3) are placed in a tray, 
sack, or pallet (subject to the standards for the rate claimed) that is 
labeled to the BMC or ASF where deposited, or labeled to a postal 
facility within that BMC's or ASF's service area (see Exhibit 5.1). If 
packages of flats on pallets are reallocated from an ASF pallet to a 
BMC pallet under M045.6.0, mail for the ASF ZIP Codes placed on the BMC 
pallet is not eligible for the DBMC rates. DBMC rate mail must also be 
eligible for Presorted, automation, or Enhanced Carrier Route rates, 
subject to the corresponding standards for those rates.

5.3  Eligibility for ADC or AADC Sortation

    All pieces in an ADC sack or tray or AADC tray are eligible for the 
DBMC discount if the ADC or AADC facility ZIP Code (as shown on Line 1 
of the corresponding container label) is within the service area of the 
BMC or ASF as shown in Exhibit 5.1 at which the sack or tray is 
deposited. All pieces in a palletized ADC package or bundle are 
eligible for the DBMC discount if the ADC facility that is the 
destination of the package or bundle (determined by using the label to 
ZIP Code in Column B of L004) is within the service area of the BMC or 
ASF as shown in Exhibit 5.1 at which it is deposited.

5.4  Eligibility in Mixed ADC Sacks or Trays or Mixed AADC Trays

    Mail in mixed ADC or mixed AADC sacks or trays qualify for the DBMC 
rates only if all the pieces in the sack or tray are for the service 
area of the DBMC or DASF as shown in Exhibit 5.1. Mailers who opt to 
claim the DBMC rates for mail in mixed ADC Sacks or trays or mixed AADC 
trays must prepare separate Mixed ADC sacks or trays or Mixed AADC 
trays for pieces eligible for and claimed at the DBMC rate and for 
pieces not claimed at the DBMC rate. Otherwise applicable restrictions 
(e.g., minimum volume, number of less-than-full trays) are excepted 
when necessary to comply with this standard.

5.5  Additional Standards for Machinable Parcels

    a. Destination BMC/ASF Containers. Machinable parcels palletized 
under M045 or sacked under M610 may be sorted to destination BMCs under 
L601 or to destination BMCs and ASFs under L601 and L602. When 
machinable parcels are sorted to both destination BMCs and ASFs under 
L601 and L602, they qualify for DBMC rates under 5.2. Sortation of 
machinable parcels to ASFs is optional but is required for the ASF mail 
to be eligible for DBMC rates. Mailers may opt to sort some or all 
machinable parcels for ASF service area ZIP Codes to ASFs only when the 
mail will be deposited at the respective ASFs where the DBMC rate is 
claimed, under applicable volume standards, using L602, otherwise 
mailers must sort machinable parcels only to destination BMCs under 
L601. If machinable parcels are sorted under L601, only mail for 3-
digit ZIP Codes served by a BMC as listed in Exhibit E651.5.1 are 
eligible for DBMC rates (i.e., mail for 3-digit ZIP Codes served by an 
ASF in Exhibit 5.1 is not eligible for DBMC rates, nor is mail for 3-
digit ZIP Codes that do not appear on Exhibit 5.1).
    b. Mixed BMC Containers. Pieces in mixed BMC sacks or on mixed BMC 
pallets that are sorted to the origin BMC under M045 or M610 are 
eligible for the DBMC rates if both of the following conditions are 
met: (1) The mixed BMC sack or pallet is entered at the origin BMC 
facility to which it is labeled; and (2) the pieces are for 3-digit ZIP 
Codes listed as eligible destination ZIP Codes for that BMC in Exhibit 
5.1.
* * * * *

E652  Parcel Post

1.0  BASIC STANDARDS

1.1  Definitions

* * * * *
    (Amend 1.1a to include a reference to L601 to read as follows:)
    a. A destination bulk mail center (DBMC) includes all bulk mail 
centers (BMCs) and auxiliary service facilities (ASFs) under L601 and 
L602, and designated sectional center facilities (SCFs) under 5.0.
* * * * *

1.2  General

    (Revise 1.2 to read as follows:)
    For Parcel Post mailings claimed at DBMC, DSCF, or DDU rates, 
pieces must meet the applicable standards in 1.0 through 6.0 and the 
following criteria:
    a. May be bedloaded, on pallets, in pallet boxes on pallets, in 
sacks, or in other authorized containers as specified in 2.0 through 
6.0, depending on the facility at which the pieces are deposited.
    b. Is not plant-loaded.
    c. Be part of a single mailing of 50 or more pieces that are 
eligible for and claimed at any Parcel Post rate or rates.
    d. Be deposited at a destination BMC (DBMC) or destination 
auxiliary service facility (DASF) or other equivalent facility; 
destination sectional center (DSCF); or destination delivery unit (DDU) 
as applicable for the rate claimed and as specified by the USPS.
    e. Be addressed for delivery within the ZIP Code ranges that the 
applicable entry facility serves.
    (Revise 1.3 to read as follows:)

1.3  DBMC Rates

    For DBMC rates, pieces must meet the applicable standards in 1.0 
through 6.0 and the following:
    a. Pieces must be part of a Parcel Post mailing that is deposited 
at a BMC or ASF under L601 or L602.

[[Page 48388]]

    b. Pieces deposited at each BMC or ASF must be addressed for 
delivery within the ZIP Code range of that facility.
    c. Pieces must be within a ZIP Code eligible for DBMC rates under 
Exhibit 1.3, and if sacked or palletized must be prepared in accordance 
with M041 and M045 or M630. Mail meeting the additional criteria in 4.0 
may be deposited at a designated facility other than the BMC or ASF 
where the DBMC parcels would otherwise be deposited.
    (Add new Exhibit 1.3.)
    (Redesignate 1.3 (e) and (f) as 1.4 (a) and (b).)

Exhibit 1.3  BMC/ASF--DBMC RATE ELIGIBILITY

------------------------------------------------------------------------
       Eligible destination ZIP Codes               Entry facility
------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127,     BMC NEW JERSEY NJ 00102
 340.
010-067, 120-123, 128, 129.................  BMC SPRINGFIELD MA 05500
130-136, 140-149...........................  ASF BUFFALO NY 140
150-168, 260-266, 439-447..................  BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199..................  BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268.......  BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376.............  BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368,     BMC ATLANTA GA 31195
 373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,   BMC JACKSONVILLE FL 32099
 347, 349.
369-372, 375, 380-397, 700, 701, 703-705,    BMC MEMPHIS TN 38999
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-    BMC CINCINNATI OH 45900
 427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497..................  BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689...  BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............  BMC MPLS/ST PAUL MN 55202
570-577....................................  ASF SIOUX FALLS SD 570
565, 567, 580-588..........................  ASF FARGO ND 580
590-599, 821...............................  ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600-   BMC CHICAGO IL 60808
 611, 613.
420, 423, 424, 475-479, 614-620, 622-631,    BMC ST LOUIS MO 63299
 633-639.
640, 641, 644-658, 660-662, 664-679, 739...  BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730
 749.
706, 710-712, 718, 733, 747, 750-799, 885..  BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831.............  BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979.......  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935....  BMC LOS ANGELES CA 90901
894, 895, 897, 936-966.....................  BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........  BMC SEATTLE WA 98000
------------------------------------------------------------------------

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

1.4  DSCF and DDU Rates

    For DSCF and DDU rates, pieces must meet the applicable standards 
in 1.0 through 1.6 and the following criteria:
* * * * *

L  LABELING LISTS

L000  General Use

* * * * *

L600  Standard Mail

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

L601  BMCs

    (Revise introductory paragraph to read as follows:)
    Use this list for:
    (1) Standard Mail (A) machinable parcels except ASF mail prepared 
and claimed at DBMC rates.
    (2) Standard Mail (A) packages, bundles, letter trays, or sacks on 
pallets.
    (3) Bound Printed Matter machinable parcels.
    (4) Bound Printed Matter packages of flats or sacks on pallets.
    (5) Parcel Post except for ASF mail prepared and claimed at DBMC 
rates and non-machinable BMC or OBMC presort rate mail.
    (6) Presorted Special Standard Mail and Presorted Library Mail to 
BMC destinations.
* * * * *
    (Amend the heading of Labeling List 602 by removing ``BMCs/'' and 
``-DBMC Rates''; revise the introductory paragraph; remove BMC 
Destination ZIP Codes from Column A and BMC ``Label to'' information 
from Column B, to read as follows:)

L602  ASFs

    Use this list for:
    (1) Standard Mail (A) machinable parcels if ASF mail is entered at 
the ASF and claimed at DBMC rates.
    (2) Standard Mail (A) packages, bundles, letter trays, or sacks on 
pallets.
    (3) Bound Printed Matter packages or sacks on pallets.
    (4) Parcel Post machinable parcels if ASF mail is entered at the 
ASF and claimed at DBMC rates.

------------------------------------------------------------------------
      Column A--destination ZIP Codes             Column B--label to
------------------------------------------------------------------------
130-136, 140-149...........................  ASF BUFFALO NY 140
570-577....................................  ASF SIOUX FALLS SD 570
565, 567, 580-588..........................  ASF FARGO ND 580
590-599, 821...............................  ASF BILLINGS MT 590
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730
 749.
832-834, 836, 837, 840-847, 898, 979.......  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852

[[Page 48389]]

 
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870
------------------------------------------------------------------------

* * * * *
    (Revise the heading of Labeling List 605 to read as follows:)

L605  BMCs/ASFs--Nonmachinable Parcel Post BMC/OBMC Presort

    (Remove the introductory paragraph.)
* * * * *

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 revising 1.2n to read as follows:)
    Terms used for presort levels are defined as follows:
* * * * *
    n. ASF/BMC: all pieces are addressed for delivery in the service 
area of the same auxiliary service facility (ASF) or bulk mail center 
(BMC) (see L601, L602, or L605, as applicable).
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION

5.1  Presort

    (Amend 5.1 by revising the last two sentences of 5.1 to read as 
follows:)
    * * * The standards for package reallocation to protect the SCF or 
BMC pallet (M045.5.0 and 6.0) are optional methods of pallet 
preparation designed to retain as much mail as possible at the SCF or 
BMC level. These standards may result in some packages of Periodical 
flats and irregular parcels and Standard Mail (A) flats that are part 
of a mailing job prepared in part as palletized flats at automation 
rates not being placed on the finest level of pallet possible. Mailers 
must use PAVE-certified presort software to prepare mailings using 
package reallocation (package reallocation is optional, but if 
performed, it must be done for the complete mailing job).

5.2  Required Preparation

    (Amend 5.2a by revising 5.2a to read as follows:)
    These standards apply to:
    a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC 
Presort, OBMC Presort, DSCF, and DDU rate mail). A pallet must be 
prepared to a required sortation level when there are 500 pounds of 
Periodicals or Standard Mail packages, sacks, or parcels or six layers 
of Periodicals or Standard Mail (A) letter trays. For packages of 
Periodicals flats and irregular parcels on pallets prepared under the 
standards for package reallocation to protect the SCF pallet (M045.5), 
not all mail for a required 5-digit scheme or 5-digit destination is 
required to be on a 5-digit scheme or 5-digit destination pallet. For 
packages of Standard mail (A) flats on pallets, not all mail for a 
required 5-digit destination is required to be on a 5-digit pallet or 
optional 5-digit/scheme pallet. For packages of Standard Mail (A) flats 
on pallets prepared under the standards for package reallocation to 
protect the BMC pallet (M045.6.0), not all mail for a required ASF 
pallet is required to be on an ASF pallet. Mixed pallets of sacks, 
trays, or machinable parcels must be labeled to the BMC or ADC (as 
appropriate) serving the post office where mailings are entered into 
the mailstream. The processing and distribution manager of that 
facility may issue a written authorization to the mailer to label mixed 
BMC or mixed ADC pallets to the post office or processing and 
distribution center serving the post office where mailings are entered. 
These pallets contain all mail remaining after required and optional 
pallets are prepared to finer sortation levels under M045, as 
appropriate.
* * * * *
6.0  COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE 
MAILPIECES
* * * * *

6.4  Standard Mail (A)

    (Amend 6.4 by revising the first sentence to read as follows:)
    To copalletize different Standard Mail (A) flat-size mailings, the 
mailer must consolidate on pallets all independently sorted packages 
from each mailing to achieve the finest presort level for the mailing, 
except that a copalletized mailing prepared under M045.5.0 or 6.0, 
using the package reallocation option, may not always result in all 
packages being placed on the finest pallet level possible .* * *
* * * * *

M045  Palletized Mailings

* * * * *
4.0  PALLET PRESORT AND LABELING

4.1  Packages, Bundles, Sacks, or Trays on Pallets

    (Amend 4.1 by revising 4.1e to read as follows:)
    Preparation sequence and Line 1 labeling:
* * * * *
    e. As appropriate:
    (1) Periodicals: ADC: required; for Line 1, use L004.
    (2) Standard Mail:
    (i) Destination ASF: required, except that an ASF may not be 
required if using package reallocation used under 6.0. For Line 1 use 
L602. Exhibit E651.5.1 determines DBMC rate eligibility.
    (ii) Destination BMC: required; for Line 1 use L601. Exhibit 
E651.5.1 determines DBMC rate eligibility.
* * * * *

4.2  Machinable Parcels--Standard Mail

    (Amend 4.2 by revising 4.2b and 4.2c to read as follows:)
    Preparation sequence and Line 1 labeling:
* * * * *
    b. Destination ASF: optional; allowed only for mail deposited at an 
ASF to claim the DBMC rate; for Line 1, use L602. Exhibit E651 5.1 or 
Exhibit E652.1.3 determines DBMC rate eligibility.
    c. Destination BMC: required; for Line 1, use L601. Exhibit E651 
5.1 or Exhibit E652.1.3 determines DBMC rate eligibility.
* * * * *
    (Amend heading of 5.0 by adding ``TO PROTECT SCF PALLET'' to read 
as follows:)
5.0  PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS 
AND IRREGULAR PARCELS AND STANDARD MAIL (A) FLATS ON PALLETS

5.1  Basic Standards

    (Amend 5.1 by revising the first sentence to read as follows:)
    Package reallocation to protect the SCF pallet is an optional 
preparation

[[Page 48390]]

method (if performed, package reallocation must be done for the 
complete mailing job); only PAVE-certified presort software may be used 
to create pallets under the standards in 5.2 through 5.4.* * *
* * * * *
    (Redesignate 6.0 through 14.0 as 7.0 through 15.0, respectively; 
insert new 6.0 to read as follows:)
6.0  PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL (A) 
FLATS ON PALLETS

6.1  Basic Standards

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

Exhibit 6.1, ``Parent'' BMC/''Child'' ASF

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

6.2  General Reallocation Rules

    In general, when reallocating:
    a. The reallocation process does not affect package preparation. 
Reallocate only complete packages and only the minimum number of 
packages necessary to create a BMC pallet that meets the 250-pound 
minimum pallet weight. Based on the weight of individual pieces within 
a package and packaging parameters, the weight of mail that is 
reallocated may be slightly more than the minimum volume required 
creating a BMC pallet.
    b. Use Exhibit 6.1 to reallocate packages from the ASF pallet to 
create a BMC pallet. The ASF pallet may be eliminated to protect the 
BMC pallet.
    c. Reallocate mail only from one ASF pallet. Package reallocation 
is only to be used between the ``parent'' BMC and the ``child'' ASF. 
Mail from finer levels of pallets (e.g., SCF pallets) may not be 
reallocated.
    d. Mailers may use any minimum pallet weight(s) permitted by 
standard and may use different minimum weights for different pallet 
levels in conjunction with package reallocation.

6.3  Reallocation of Packages from ASF pallets

    When reallocating packages from ASF pallets:
    a. Use Exhibit 6.1, to identify an ASF pallet of adequate weight 
that can support reallocation of one or more packages to bring the mail 
that has fallen through the BMC level back to the BMC level without 
eliminating the ASF pallet. A sufficient amount of mail must remain on 
the ASF pallet after reallocation to meet the ASF pallet weight minimum 
of 250-pounds. If an ASF pallet of adequate weight is available, then 
create a BMC pallet by combining the reallocated mail from the ASF 
pallet with the mail that would fall beyond the BMC pallet level.
    b. If no single ASF pallet within the BMC service area contains an 
adequate volume of mail to allow reallocation of the portion of the 
mail on a pallet as described in 6.3a, then eliminate one ASF pallet 
and reallocate all of the mail to create a BMC pallet.

6.4  Documentation

    Mailings must be supported by documentation produced by PAVE-
certified software meeting the standards in P012.
* * * * *
10.0  PALLETS OF MACHINABLE PARCELS
* * * * *
    (Amend redesignated 10.3, by removing the second sentence to read 
as follows:)

10.3  DBMC Rate

    If applicable, a BMC pallet may include pieces that are eligible 
for the DBMC rate and pieces that are ineligible.
* * * * *

M073  Combined Mailings Of Standard Mail (A) And Standard Mail (B) 
Parcels

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

1.6  Sack Preparation

    (Amend 1.6 by adding an introductory sentence and by revising 
1.6a(2) and 1.6a(3) to read as follows:)
    The requirements for sack preparation are as follows:
    a. Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    (2) Destination ASF: optional; allowed only for mail deposited at 
an ASF to claim the DBMC rate (minimum of 10 pounds, smaller volume not 
permitted); for Line 1 use L602. DBMC rate eligibility is determined by 
Exhibit E651.1.3.
    (3) Destination BMC: required (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L602 if DBMC rate is claimed for mail 
deposited at ASF under 4.2b; otherwise, use L601. DBMC rate eligibility 
is determined by Exhibit E651.5.1.
* * * * *

[[Page 48391]]

M610  Presorted Standard Mail (A)

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

5.2  Sack Preparation

    (Amend 5.2 by revising 5.2(b) and 5.2(c) to read as follows:)
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. Destination ASF: optional; allowed only for mail deposited at an 
ASF to claim the DBMC rate (minimum of 10 pounds, smaller volume not 
permitted); for Line 1 use L602. DBMC rate eligibility is determined by 
Exhibit E651.1.3.
    c. Destination BMC: required (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L601. DBMC rate eligibility is 
determined by Exhibit E651.5.1.
* * * * *

M630  Standard Mail (B)

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

6.2  Sack Preparation

    (Amend 6.2 by revising 6.2b and 6.2c to read as follows:)
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. Destination ASF: optional; allowed only for mail deposited at an 
ASF to claim the DBMC rate (minimum of 10 pieces/20 pounds/1,000 cubic 
inches, smaller volume not permitted); for Line 1, use L602. Exhibit 
E652.1.3d determines DBMC rate eligibility.
    c. Destination BMC: required (minimum of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); for Line 1, use L601. 
Exhibit E652.1.3d determines DBMC rate eligibility.
* * * * *

P  POSTAGE AND PAYMENT METHODS

P000  Basic Information

P010  General Standards

* * * * *

P012  Documentation

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

2.2  Format and Content

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

2.4  Sortation Level

    (Amend 2.4 by inserting new sortation level and abbreviation 
immediately below SCF pallets created from package reallocation to read 
as follows:)
    The actual sortation level (or corresponding abbreviation) is used 
for the package, tray, sack, or pallet levels required by 2.2 and shown 
below.

------------------------------------------------------------------------
                      Sortation level                       Abbreviation
------------------------------------------------------------------------
 
                  *        *        *        *        *
BMC [pallets created from package reallocation]...........         PBMC
 
                  *        *        *        *        *
------------------------------------------------------------------------

    An appropriate amendment to 39 CFR 111.3 will be made to reflect 
these changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-19579 Filed 8-7-00; 8:45 am]
BILLING CODE 7710-12-P