[Federal Register Volume 65, Number 168 (Tuesday, August 29, 2000)]
[Proposed Rules]
[Pages 52480-52585]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21416]



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Part II





Postal Service





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39 CFR Part 111



Domestic Mail Manual to Implement Docket No. R2000-1, Proposed Changes; 
Proposed Rule

  Federal Register / Vol. 65, No. 168 / Tuesday, August 29, 2000 / 
Proposed Rules  

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POSTAL SERVICE

39 CFR Part 111


Proposed Changes to the Domestic Mail Manual to Implement Docket 
No. R2000-1

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: On January 12, 2000, the United States Postal Service, in 
conformance with sections 3622 and 3623 of the Postal Reorganization 
Act (39 U.S.C. 101 et seq.), filed a request for a recommended decision 
by the Postal Rate Commission (PRC) on proposed rate, fee, and 
classification changes. The PRC designated this filing as Docket No. 
R2000-1. The PRC issued a notice of filing in Order No. 1279 on January 
14, 2000.
    This proposed rule provides information on the implementing rules 
for the rate, fee, and classification changes that the Postal Service 
proposes to adopt if the PRC's recommended decision on R2000-1 is 
consistent with the Postal Service's request and if the Governors of 
the Postal Service, acting pursuant to 39 U.S.C. 3625, approve that 
recommended decision.

DATES: Comments must be received on or before October 2, 2000.

ADDRESSES: Mail or deliver written comments to the Manager, Mail 
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW, 
Room 6800, Washington DC 20260-2405. Fax: 202-268-4336. Copies of all 
written comments will be available for inspection and photocopying 
between 9 a.m. and 4 p.m., Monday through Friday, at USPS Headquarters 
Library, 475 L'Enfant Plaza SW, 11th Floor N, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Karen Magazino, 202-268-3854 (for 
information on Express Mail, First-Class Mail, and Priority Mail); Joel 
Walker, 202-268-3340 (for information on Periodicals); Lynn Martin, 
202-268-6351 (for information on Standard Mail); Paul Lettman, 202-268-
6261 (for information on Parcel Post, Media Mail, and Library Mail); 
Thomas DeVaughan, 202-268-4491, or Lynn Martin, 202-268-6351 (for 
information on Bound Printed Matter); Thomas DeVaughan, 202-268-4491, 
or Anne Emmerth, 202-268-2363 (for information on special services); 
Anne Emmerth, 202-268-2363 (for information on post office boxes); 
Carrie Bornitz, 202-268-6797 (for information on Signature 
Confirmation). General contact for all subjects is Lynn Martin, 202-
268-6351.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2000-1 includes major classification and rate structure changes and 
increases in most existing rate and fee categories. The proposed major 
classification changes and rate structure changes are as follows:
    (1) For Priority Mail, a separate price for pieces weighing 1 pound 
or less would be added.
    (2) For First-Class Mail automation flats, the current 3/5-digit 
presort rate would be replaced with a separate 5-digit rate and a 
separate 3-digit rate.
    (3) For Periodicals, based on an anticipated legislative change, 
the Regular, Nonprofit, and Classroom subclasses will be merged into a 
new ``Outside-County'' subclass. The preferred nature of Nonprofit and 
Classroom publications would be recognized by applying a 5% discount 
off of the total computation of Outside-County postage, except that the 
discount would not apply to postage for advertising pounds. 
Furthermore, the 5% discount would not apply to commingled 
nonsubscriber, nonrequester, complimentary, and sample copies in excess 
of the 10% allowance under Domestic Mail Classification Schedule (DMCS) 
sections 412.34 and 413.42, or to Science-of-Agriculture mail.
    (4) For Periodicals, physical restrictions would be added to 
specify that a mailpiece may not weigh more than 70 pounds or measure 
more than 108 inches in length and girth combined, and that additional 
size limitations may apply to pieces mailed at individual rate 
categories.
    (5) For Standard Mail (A), which would be renamed Standard Mail, a 
new barcoded discount would be available for machinable parcels that 
are subject to the residual shape surcharge and that are entered as 
Regular or Nonprofit subclass mail. (Mail entered at carrier route 
rates would not be eligible.)
    (6) For Standard Mail (A), which would be renamed Standard Mail, a 
separate residual shape surcharge would be added for Enhanced Carrier 
Route and Nonprofit Enhanced Carrier route pieces. This surcharge would 
be lower than the residual shape surcharge for Regular and Nonprofit 
mail.
    (7) For Standard Mail (A), which would be renamed Standard Mail, 
all automation letters would have a weight limit of 3.5 ounces. All 
other Standard Mail letters would be subject to a maximum weight limit 
of 3.3 ounces for minimum per-piece rates.
    (8) Standard Mail (B) would be renamed Package Services. Package 
Services would include Parcel Post, Bound Printed Matter, Media Mail 
(formerly Special Standard Mail), and Library Mail.
    (9) For Parcel Post, the minimum 16-ounce weight requirement would 
be removed. Pieces weighing less than 1 pound would be subject to the 
full, applicable rate for a piece weighing 2 pounds.
    (10) For Parcel Post, a nonmachinable surcharge would be added for 
intra-BMC/ASF rate mail and a separate nonmachinable surcharge would be 
added for destination bulk mail center (DBMC) rate mail.
    (11) For Bound Printed Matter (BPM), the minimum 16-ounce weight 
requirement would be removed. Presorted and Carrier Route rate pieces 
weighing less than 1 pound would be subject to the full, applicable 
rate for a piece weighing 1 pound and single-piece rate BPM pieces 
weighing less than 1 pound would be subject to the full, applicable 
rate for a piece weighing 1.5 pounds.
    (12) For all Bound Printed Matter, the separate local zone rate 
category would be removed. Mail for local zones would be subject to the 
same rates as mail for zones 1 and 2.
    (13) For Bound Printed Matter, three destination entry discounts 
would be added for mail entered at the destination bulk mail center 
(DBMC), destination sectional center facility (DSCF), and destination 
delivery unit (DDU).
    (14) Special Standard Mail would be renamed Media Mail.
    (15) For Bulk Parcel Return Service, mailers would be required to 
pay an annual accounting fee.
    (16) For Collect on Delivery (COD), the limit for collection would 
increase from $600 to $1,000.
    (17) For Delivery Confirmation, electronic option Delivery 
Confirmation would be extended to Standard Mail (formerly Standard Mail 
(A)) pieces that are subject to the residual shape surcharge.
    (18) For insurance, bulk insurance service would be extended to 
Standard Mail (formerly Standard Mail (A)) pieces that are subject to 
the residual shape surcharge.
    (19) For merchandise return service, the per-piece (transaction) 
fee for pieces returned to the permit holder would be removed, and 
permit holders would be required to pay an annual accounting fee. 
Senders (those who use MRS labels to return a parcel to the permit 
holder) would be permitted to add insurance to a MRS piece at their own 
discretion and expense. No other special services could be added by the 
sender.

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    (20) For meter service, the name of the service ``on-site meter 
settings'' would be changed to ``on-site meter service.'' The 
``additional meters'' fee category would be replaced with a ``meter 
reset and/or examined'' fee category that would be applicable to each 
meter reset or examined, including the first meter. Secured postage 
meters would be exempt from the checking in/out fee.
    (21) For post office boxes, the box fee groups would be realigned 
to better match fees with the costs of providing post office box 
service. A nonrefundable fee would be added for replacing or 
duplicating post office box keys. A nonrefundable fee would be added 
for changing a post office box lock.
    (22) For business reply mail, a new ``high-volume'' fee category is 
added for Qualified Business Reply Mail (QBRM). The high-volume fee 
category would give permit holders the option of paying a quarterly fee 
(in addition to the annual accounting fee) and thereby qualify for a 
lower per piece charge.
    (23) For return receipt for merchandise, service would be extended 
to Standard Mail (formerly Standard Mail (A)) pieces that are subject 
to the residual shape surcharge. Return receipt for merchandise service 
also would be extended to unnumbered insured items.
    (24) For Shipper Paid Forwarding, an annual accounting fee would be 
added for mailers who choose to pay forwarding charges through an 
advance deposit account.
    (25) A new classification for Signature Confirmation service has 
been proposed.
    (26) For stamped envelopes, the current three categories of stamped 
envelopes would be realigned into two categories: household (basic) and 
special.
    Part A of this proposed rule summarizes the proposed revisions to 
the Domestic Mail Manual (DMM) necessary to implement R2000-1 by class 
of mail and special service category. Part B summarizes the proposed 
changes by DMM module and section. The actual proposed changes to the 
DMM follow at the end of this proposed rule.
    Comments are solicited on the implementing DMM standards that 
appear at the end of this proposed rule. As information, the DMM 
language in this proposed rule incorporates revisions to the DMM from 
four previously published Federal Register final rules that also will 
take effect on the date that coincides with implementation of the rates 
resulting from the R2000-1 rate case. These final rules are:
    1. ``Sack Preparation Changes for Periodicals Nonletter-Size Pieces 
and Periodicals Prepared on Pallets'' published on July 28, 2000 (65 FR 
46361).
    2. ``Line-of-Travel Sequencing for Basic Carrier Route 
Periodicals'' published on July 28, 2000 (65 FR 46363).
    3. ``Preparation Changes for Palletized Standard Mail (A) and Bound 
Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed 
at DBMC Rates'' published on August 8, 2000 (65 FR 48385).
    4. ``Domestic Mail Manual Changes for Sacking and Palletizing 
Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-
Class Flats, and for Labeling Pallets'' published on August 16, 2000 
(65 FR 50054).
    Accordingly, the numbering and the language of the DMM sections in 
this proposed rule have been synchronized with these final rules and 
may not match the numbering and language in current DMM Issue 55.
    Although proposed rates, rate categories, and rate structures are 
included in this language, they are outside the scope of this 
rulemaking process because they are still under review by the Postal 
Rate Commission. For example, comments on whether destination entry 
rates for Bound Printed Matter should be offered, or offered at a 
different rate, would not be appropriate. However, comments suggesting 
changes to the way the Postal Service implements standards for 
destination entry Bound Printed Matter would, however, be appropriate.
    Similarly, comments on the provisions contained in the four Federal 
Register notices listed above are outside the scope of this rulemaking 
because they have already been subject to the comment process and 
published as final rules.

A. Summary of Proposed Changes by Class of Mail

1. Express Mail

a. Express Mail Rate Highlights
    Overall, Express Mail rates are proposed to increase by an average 
of 3.8%. Moderate increases are proposed for all Express Mail rates, 
except for a $0.30 decrease in the 1/2-pound rates for Custom Designed 
Service and for Next Day and Second Day Post Office to Post Office 
Service. The fee for pickup service is proposed to increase from $8.25 
to $10.25 per occurrence. The fee for delivery stops (Custom Designed 
Service only) is proposed to increase from $8.25 to $10.25. The fee for 
every $100 increment of additional insurance desired above the standard 
$500 of coverage would increase from $0.95 to $1.00.
b. Express Mail Rate Structure
    There are no proposed changes to the rate structure of Express 
Mail.
c. Express Mail Preparation Changes
    There are no proposed changes to mail preparation requirements for 
Express Mail.

2. Priority Mail

a. Priority Mail Rate Highlights
    Overall, Priority Mail rates are proposed to increase by an average 
of 15%. The fee for pickup service is proposed to increase from $8.25 
to $10.25 per occurrence.
b. Priority Mail Rate Structure
(1) One Pound or Less Priority Mail Rate
    A unique Priority Mail rate is proposed for pieces weighing 1 pound 
or less. Currently all Priority Mail pieces weighing 2 pounds or less 
pay the same rate. The proposed 1-pound Priority Mail rate is $0.35 
more than the proposed First-Class Mail rate ($3.10) for a 13-ounce 
piece. Mail that is placed in a Priority Mail flat-rate envelope will 
continue to be charged the 2-pound rate even if the actual weight is 1 
pound or less.
(2) Keys and Identification Devices
    It is proposed that keys and identification devices that weigh more 
than 13 ounces but not more than 1 pound will be eligible for the new 
1-pound Priority Mail rate plus the fee. The fee for keys and 
identification devices is proposed to increase from $0.30 to $0.35.
c. Priority Mail Preparation Changes
    There are no proposed changes to mail preparation requirements for 
Priority Mail.
3. First-Class Mail
a. First-Class Mail Rate Highlights
    Overall, First-Class Mail rates are proposed to increase by an 
average of 3.6%. It is proposed that the single-piece first-ounce 
letter rate be increased by only one cent, from $0.33 to $0.34, and 
that the rate for additional ounces increases by only one cent from 
$0.22 to $0.23. The Postal Service also is proposing a $0.01 increase 
in the single-piece card rate from $0.20 to $0.21.
    It is proposed that the first-ounce letter rate for Qualified 
Business Reply Mail (QBRM) increase from $0.30 to $0.31, and that the 
card rate for QBRM remain the same at $0.18.

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    The nonstandard surcharge for single-piece rate mail weighing one 
ounce or less would remain the same at $0.11. The nonstandard surcharge 
for Presorted rate and Automation rate pieces would remain the same at 
$0.05.
    Small increases are proposed for Automation and Presorted rates. 
The Postal Service proposes a $0.01 increase in the basic automation 
flat rate, from $0.30 to $0.31. The combined 3/5-digit rate category 
for automation flats would be eliminated. It is proposed that new and 
separate automated rate categories for 3-digit automation flats and for 
5-digit automation flats be implemented. The annual presort mailing fee 
is proposed to increase from $100 to $125.
b. First-Class Mail Rate Structure
    It is proposed to split the current automation flats 3/5-digit rate 
into two separate rates: a 5-digit automation rate and a 3-digit 
automation rate.
c. First-Class Mail Preparation Changes
(1) Automation Flats (DMM M011, M030, M033, M820, M910)
    The Postal Service is proposing to change the standards for 
preparation of 5-digit packages and 5-digit trays of automation flats 
under DMM 820 from required levels of sortation to optional levels of 
sortation. This is supported by the new rate structure that provides 
separate 5-digit and 3-digit rates for automation flats. All other 
current mail preparation requirements would remain the same.
    It is also proposed to add a new tray-based presort option for 
automation flats. When using this option, mailers would not need to 
prepare automation flats in 5-digit, 3-digit, ADC and mixed ADC 
packages. Instead, mailers would prepare flat trays to 5-digit 
(optional), 3-digit, ADC, and mixed ADC destinations whenever there 
were 90 or more pieces to a presort destination. Ninety is the average 
number of pieces that fills a flat tray up to the bottom of the 
handholds when at least a single stack of mail is lying flat on the 
bottom of the tray. When there are 90 or more pieces for a presort 
destination, mailers would be required to physically fill flat tray(s) 
for that destination and would be allowed one less-than-full tray or 
one overflow tray per presort destination. Preparation of 5-digit trays 
also would be optional under this tray-based preparation option. Rates 
would be based on the sortation level of the tray to which a piece is 
sorted. If this proposal is adopted, mailers choosing to prepare their 
mail using this option would not be eligible to prepare their mail as 
outlined in new M910 which will also go into effect when the rates 
resulting from the R2000-1 rate case are implemented. (M910 will permit 
co-traying of packages from automation rate mailings and packages from 
Presorted rate mailings that are part of the same mailing job and meet 
other criteria.)
(2) Tray Containers (DMM M033)
    For clarification, it is proposed to add information to M033.1.2 to 
show that the lids required to be placed on First-Class Mail flat trays 
must be placed on the tray green side up prior to strapping under 
M033.1.5b.

4. Periodicals

a. Periodicals Rate Highlights
    The average increase for Periodicals in the current proposal is 
12.6%. Outside-County Periodicals would have an average increase of 
12.7% while Within-County Periodicals would have an average increase of 
8.6%. However, as the result of a joint effort by the Postal Service 
and the Periodicals industry, further cost savings were identified that 
have the potential to reduce the proposed increases. The proposed rates 
assume that the Revenue Forgone Reform Act (RFRA) is amended.
    It is proposed to combine two of the preferred subclasses 
(Nonprofit and Classroom) with the Regular subclass to form an Outside-
County subclass with one set of rates. Nonprofit and Classroom 
publications would receive a 5% discount on total Outside-County 
postage, excluding the postage for advertising pounds. The Within-
County subclass would remain a separate subclass with a separate set of 
rates.
    It is proposed that the nonadvertising percentage per-piece 
discount, the delivery unit (Outside-County and In-county) per-piece 
discounts, and the SCF per-piece discount will increase. The Outside-
County, Science-of-Agriculture, and In-County pound rates will increase 
along with all per-piece rates for both subclasses (Outside-County and 
Within County). See DMM R200 for individual proposed rates and 
discounts.
    It is proposed that the fee for original entry would increase from 
$305 to $350. The re-entry and newsagents fees will decrease from $50 
to $40.
b. Periodicals Rate Structure
    Regular, Nonprofit, and Classroom publications would use the same 
rate schedule. Nonprofit and Classroom publications would receive a 5% 
discount on total Outside-County postage, excluding the postage for 
advertising pounds. The 5% discount does not apply to commingled 
nonsubscriber copies in excess of the 10% allowance provided under DMM 
E215. In-County rates would remain a separate rate schedule.
c. Periodicals Mail Preparation Changes
(1) Bundles on Pallets
    The current DMM describes a ``bundle'' as a group of packages 
secured together as a unit that equates to a sack. The current DMM 
provides both for preparation of packages on pallets under DMM M045.2.0 
and for preparation of bundles on pallets under DMM M045.3.0. The 
Postal Service is not aware of any mailers that currently opt to 
prepare bundles on pallets. Accordingly, the Postal Service is 
proposing to delete the option to prepare bundles on pallets under 
current DMM M045.3.0. The provisions for preparing packages on pallets 
would remain in DMM M045.2.0.
(2) Previous Rulemakings
    Mailers are reminded that three final rule Federal Register notices 
have previously been published that set forth required and optional 
preparation requirements for Periodicals that also will be effective on 
the date that the rates resulting from the R2000-1 rate case are 
implemented. These are: (1) ``Sack Preparation Changes for Periodicals 
Nonletter-Size Pieces and Periodicals Prepared on Pallets'' published 
on July 28, 2000 (65 FR 46361), (2) ``Line-of-Travel Sequencing for 
Basic Carrier Route Periodicals'' published on July 28, 2000 (65 FR 
46363), and (3) ``Domestic Mail Manual Changes for Sacking and 
Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for 
Traying First-Class Flats, and for Labeling Pallets'' published August 
16, 2000 (65 FR 50054).

5. Standard Mail (Formerly Standard Mail (A))

a. Standard Mail Rate Highlights
    The overall average proposed rate increase is 7.7%. Regular rates 
are proposed to increase by an average of 9.4%. Rates for commercial 
Enhanced Carrier Route (ECR) mail are proposed to increase by an 
average of 4.9%. Rates for Nonprofit mail are proposed to increase by 
an average of 14.8%. Rates for Nonprofit Enhanced Carrier Route are 
proposed to increase by an average of 5.6%. The proposed rates for 
Nonprofit and Nonprofit Enhanced Carrier Route are based on anticipated 
changes to the Revenue Forgone Reform Act (RFRA). However, subsequent 
to the

[[Page 52483]]

filing of the Request (for rate increases), mailer associations and the 
Postal Service engaged in further discussions concerning nonprofit 
rates. Responsible committees in Congress have since drafted 
legislation that would change the RFRA. This legislation would provide 
that nonprofit rates be set so that the estimated average revenue per 
piece received by the Postal Service from each subclass of nonprofit 
Standard Mail would be equal, as nearly as practicable, to 60% of the 
estimated average revenue per piece to be received from the most 
closely corresponding commercial subclass of mail. If the Postal 
Service had followed the mechanism in the legislation introduced in 
Congress in developing its proposal, the Postal Service would have 
proposed an average rate increase of 4.8% for Nonprofit and 17.3% for 
Nonprofit Enhanced Carrier Route.
    Increased discounts are proposed for destination entry rate mail 
(DBMC, DSCF, and DDU). The annual presort mailing fee would increase 
from $100 to $125.
b. Standard Mail Rate Structure
    It is proposed that automation letter mail would be subject to a 
weight limit of 3.5 ounces (.2188 pound). All other Standard Mail 
letters and non-letters would be subject to a weight limit of 3.3 
ounces (.2063 pound) for the minimum per-piece charge.
    A new barcoded discount of $0.03 is proposed for Standard Mail 
machinable parcels that are subject to the residual shape surcharge and 
that meet other preparation requirements. This discount would be 
available only for the Regular and Nonprofit Standard Mail subclasses 
(it would not be available for pieces mailed at the Enhanced Carrier 
Route and Nonprofit Enhanced Carrier Route subclasses).
    Two different residual shape surcharges are proposed. Enhanced 
Carrier Route and Nonprofit Enhanced Carrier Route mail would have a 
residual shape surcharge of $0.15, and Regular and Nonprofit mail would 
have a residual shape surcharge of $0.18.
    It is proposed to allow use of return receipt for merchandise, bulk 
insurance, and electronic option Delivery Confirmation with Standard 
Mail parcels that are subject to the residual shape surcharge.
c. Standard Mail Preparation Changes
(1) Name Change and DMM Restructuring
    The Postal Service proposes to change the name of this mail class 
from ``Standard Mail (A)'' to ``Standard Mail.'' Throughout this 
proposed rule, ``Standard Mail'' is used consistently in the DMM text 
to indicate the class formerly known as ``Standard Mail (A).'' For 
brevity, not all sections that had only name changes were reproduced in 
this final rule. This change will, however, be implemented throughout 
all of DMM Issue 56, which will transmit the final implementing rules 
for R2000-1.
    DMM sections C600, D600, E600, P600, and R600 would contain 
standards for only Standard Mail. Matter in these sections that contain 
standards for Package Services mail would be moved into new sections 
under C700, D700, E700, P700, and R700, respectively. (Former P700, 
that contains information on special postage payment systems, would be 
renumbered as P900.)
    Matter pertaining only to Standard Mail in former E611 and E612 has 
been consolidated and reorganized into new E610. E620 and E630 have 
been reorganized so that E620 pertains to Presorted rate Standard Mail 
and E630 pertains to Enhanced Carrier Route Standard Mail.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M600)
    Currently, the contents line of sack and pallet labels for 
irregular parcel and machinable parcel mailings must show ``STD A'' or 
``STD B'' as applicable for the class being mailed. Because of the name 
changes of ``Standard Mail (A)'' to ``Standard Mail'' and of ``Standard 
Mail (B)'' to ``Package Services,'' the use of ``STD A'' on ``Standard 
Mail'' sack and pallet labels for irregular parcel and machinable 
parcel mailings would be changed to ``STD'' (Package Services labels 
would use ``PSVC'').
(3) Weight Limit for Automation Letters (DMM C810)
    The maximum weight for heavy letters that may qualify for 
automation letter rates would be increased to 3.5 ounces (.2188 pound). 
Pieces of automation heavy letters weighing over 3 ounces up to 3.5 
ounces would be required to meet the additional preparation 
requirements currently in effect for heavy letters in DMM C810 and 
C840.
    Because it is proposed that automation letters have a weight limit 
of 3.5 ounces (.2188 pound) and other mail be subject to a maximum of 
3.3 ounces (.2063 pound) for the minimum per-piece rates, some mailers 
could enter a mailing job that consists of an automation letters 
mailing weighing over 3.3 ounces (.2063 pound) for which the pieces 
would be subject to the automation minimum per-piece rates and a 
mailing(s) of Enhanced Carrier Route and/or Presorted rate mail for 
which the pieces would be subject to the piece/pound rates. Such 
mailing jobs may continue to be reported on the same postage statement.
(4) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a 
would change to not less than 6 inches long, 3 inches high, \1/4\ inch 
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick 
would be subject to the 3\1/2\-inch height minimum under C010.) The 
current minimum weight is 8 ounces unless certain other conditions are 
met. Some parcels may be successfully processed on BMC parcel sorters 
although they do not conform to the machinability standards in DMM 
C050.4.1. If this is the case, a BMC plant manager may authorize a 
mailer to enter such parcels as machinable parcels if the parcels are 
tested on BMC parcel sorters and prove to be machinable. Such an 
authorization will only apply to mail that is both entered at a post 
office within the service area of the authorizing BMC area and is for 
delivery to an address within the service area of that BMC. These 
changes also would apply to Package Services mail.
(5) Preparation of Bundles
    The current DMM describes a ``bundle'' as a group of packages 
secured together as a unit that equates to a sack. The current DMM 
provides both for preparation of packages on pallets under DMM M045.2.0 
and for preparation of bundles on pallets under DMM M045.3.0. The 
Postal Service is not aware of any mailers that currently opt to 
prepare bundles on pallets. Accordingly, the Postal Service is 
proposing to delete the option to prepare bundles on pallets under 
current DMM M045.3.0. The provisions for preparing packages on pallets 
would remain in DMM M045.2.0.
    The current DMM also provides for preparation of bedloaded bundles 
of Presorted and carrier route rate mail under DMM M610.6.0 and 
M620.6.0, respectively. Such preparation requires Rates and 
Classification Service Center (RCSC) authorization. The records of the 
Postal Service currently indicate that there are no mailers authorized 
to prepare bedloaded bundles in the manner described in the DMM. 
Because of this, and because bedloaded bundles are generally not cost-
efficient for the Postal Service to handle and process, the Postal 
Service is proposing to delete the options to prepare bedloaded

[[Page 52484]]

bundles under DMM M610.6.0 and M620.6.0.
(6) Machinable Parcel Barcoded Discount (DMM C850, E610, E620, P600)
    The new machinable parcel barcoded discount of $0.03 would apply to 
machinable parcels (as defined in DMM C050) for which the residual 
shape surcharge (RSS) is paid and that bear a correct, readable 5-digit 
barcode under C850 for the ZIP Code shown in the delivery address and 
are prepared as machinable parcels under M045 or M610. Machinable 
parcels prepared in 5-digit sacks or on 5-digit pallets entered at DSCF 
rates may qualify for the barcoded discount even though such pieces 
will not be processed using BMC barcode scanning equipment. Otherwise, 
rates for 5-digit sorted machinable parcels entered at DSCF rates could 
be higher than for BMC sorted machinable parcels that were entered at 
DBMC rates and which also qualified for the barcoded discount. 
Machinable parcels entered at DBMC rates may claim the machinable 
parcel barcoded discount only if they are not entered at an ASF. An 
exception is that properly prepared machinable pieces of DBMC rate mail 
entered at the Phoenix, Arizona, ASF may claim the barcoded discount 
because that facility uses barcode scanning equipment. The machinable 
parcel barcoded discount is not available for pieces mailed at the 
Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses.
    If all pieces in a mailing are eligible for the machinable parcel 
barcoded discount under E610 and E620, then the mailing may be paid 
with meter stamps, permit imprint, or precanceled stamps under the 
applicable standards. If fewer than 100 percent of the pieces in the 
mailing are eligible for the machinable parcel barcoded discount, then 
payment with precanceled stamps would not be permitted; metered postage 
would be permissible for use only if exact postage was affixed to each 
piece in the mailing; and use of permit imprints would be permitted 
only under a manifest mailing system (P910).
(7) Special Services with Standard Mail (DMM E610, P600)
    It is proposed that Standard Mail that is subject to the residual 
shape surcharge (pieces prepared as parcels or that are not letter-size 
or flat-size as defined in DMM C050) may receive the following 
additional special services upon payment of the appropriate fees: bulk 
insurance, return receipt for merchandise, and electronic option 
Delivery Confirmation. Other Standard Mail would not be eligible for 
any special services. Mail prepared with detached address labels under 
A060 and mail using Bulk Parcel Return Service (BPRS) also would not be 
eligible for any special services.
    Mailpieces for which one or more of these special services are 
requested would be required to bear a return address under A010 and 
would be required to bear an ancillary service endorsement that results 
in return of the mailpiece to the sender if undeliverable as addressed 
(Address Service Requested, Forwarding Service Requested, or Return 
Service Requested).
    Mailings for which bulk insurance is requested would be required to 
pay postage and fees through a manifest mailing system (P910).
    For electronic option Delivery Confirmation, the following postage 
payment requirements would apply. If electronic option Delivery 
Confirmation is requested for all the pieces in the mailing and the 
mailing consists of pieces of identical weight, then postage may be 
paid with metered postage or permit imprints under the existing 
standards in P600.2.0 and P600.3.0 (as restructured in this proposed 
rule). However, if Delivery Confirmation is not requested for all 
pieces in the mailing, or if the pieces are not identical weight, then 
either the exact metered postage must be affixed to each piece or a 
manifest mailing system must be used for permit imprint mail under 
P910. Precanceled stamps may not be used for postage payment on pieces 
with Delivery Confirmation (see current DMM S918.1.5).
    It is proposed that, if return receipt for merchandise is requested 
for all the pieces in the mailing and the mailing consists of pieces of 
identical weight, then postage must be paid with metered postage or 
permit imprints under the applicable standards in DMM P600.2.0 and 
P600.3.0. If return receipt for merchandise is not requested for all of 
the pieces in the mailing, or if the pieces are not identical weight, 
then either the exact metered postage must be affixed to each piece, or 
a manifest mailing system must be used for permit imprint mail under 
P910. Precanceled stamps would not be permitted for use with return 
receipt for merchandise.

6. Package Services (formerly Standard Mail (B))--General

a. Name Change and DMM Restructuring
    The Postal Service proposes to change the name of this mail class 
from ``Standard Mail (B)'' to ``Package Services.'' Package Services 
would include Parcel Post, Bound Printed Matter, Media Mail (formerly 
Special Standard Mail) and Library Mail.
    The standards in current DMM sections C600, D600, E600, P600, and 
R600 that pertain to Package Services mail would be moved into new 
sections under DMM C700, D700, E700, P700, and R700. Former P700, which 
contains information on special postage payment systems would be 
renumbered as P900.
    The standards for Package Services mail contained in current DMM 
E611 and E613 have been consolidated and reorganized into new E710. 
Current DMM E630 and E650, which contain eligibility standards for 
Package Services would be moved into new DMM E700. The four subclasses 
of Package Services mail would each have their own eligibility 
sections: DMM E711 for Parcel Post; DMM E712 for Bound Printed Matter; 
DMM E713 for Media Mail (formerly Special Standard Mail); and DMM E714 
for Library Mail. Information pertaining to eligibility of Package 
Services for destination entry rates would be moved to DMM E750. 
Current DMM M630 would be moved and reorganized into new DMM M710 for 
Parcel Post, DMM M720 for Bound Printed Matter, DMM M730 for Media 
Mail, and DMM M740 for Library Mail.
b. Combining Different Subclasses of Package Services to Qualify for 
DSCF and DDU Rates
    New provisions are added in DMM E753 that allow mailers to combine 
different subclasses of Package Services machinable and irregular 
parcels in the same 5-digit sack or on the same 5-digit pallet to 
qualify for DSCF and DDU rates. For sack preparation, 10 or more 
parcels of any combination of Package Services subclasses, except for 
mail at Carrier Route Bound Printed Matter rates, would be allowed to 
be placed in the same 5-digit sack and entered at destination SCFs or 
at destination delivery units. For pallet preparation, 5-digit pallets 
that contain either 50 pieces and 250 pounds or that contain at least 
36 inches of Package Services parcels (any combination of subclasses, 
except mail at Carrier Route Bound Printed Matter rates) may be 
prepared and entered at destination SCFs or at destination delivery 
units. Any Parcel Post pieces and any Presorted Bound Printed Matter in 
such sacks or on such pallets would be eligible for the appropriate 
DSCF or DDU rate provided all other eligibility requirements for the 
applicable destination entry rate are met. Media Mail and Library Mail 
pieces would be subject to their respective single-piece or 5-digit 
rates

[[Page 52485]]

depending upon whether the 500-piece minimum quantity requirement for 
the 5-digit rates was met for each subclass. See E753 for a full 
description of the requirements and rate applicability.

7. Parcel Post

a. Parcel Post Rate Highlights
    Parcel Post rates are proposed to increase by an average of 1.3%. 
It is proposed to increase the nonmachinable surcharge for Inter-BMC 
Parcel Post from $1.65 to $1.79 per parcel. The Parcel Post Origin BMC 
Presort and BMC Presort discounts would increase from $0.57 to $0.93 
per piece and from $0.22 to $0.23 per piece, respectively. The barcoded 
discount for qualifying Parcel Post machinable parcels would remain at 
$0.03 per piece. The annual destination entry fee for Parcel Select is 
proposed to increase from $100 to $125.
b. Parcel Post Rate Structure
    It is proposed that pieces weighing less than 16 ounces would be 
eligible for Parcel Post rates; however, there are no proposed rates 
for pieces less than 2 pounds. Therefore, if a piece weighs less than 2 
pounds, it will be charged the rate that would apply to a 2-pound 
parcel.
    It is proposed to add a $0.40 nonmachinable surcharge for Intra-BMC 
Parcel Post and to add a $0.45 nonmachinable surcharge to DBMC Parcel 
Select.
c. Parcel Post Mail Preparation Changes
(1) Rate Markings (DMM M012 and M710)
    There are no proposed changes to the marking requirements for 
Parcel Post and Parcel Select.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M710)
    It is proposed to change the abbreviation ``STD'' or ``STD B'' on 
the contents line of sack and pallet labels for Parcel Post to ``PSVC'' 
(an abbreviation for Package Services). Labels for 5-digit sacks and 
pallets prepared to qualify for DSCF and DDU rates are further revised 
to add the processing category ``PARCELS'' to the contents line to read 
``PSVC PARCELS 5D.'' For containers of combined Package Services 
parcels, line 2 also would read ``PSVC PARCELS 5D.''
(3) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a 
would change to not less than 6 inches long, 3 inches high, \1/4\ inch 
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick 
would be subject to the 3\1/2\-inch height minimum under C010.) The 
current minimum weight is 8 ounces unless certain other conditions are 
met. Some parcels may be successfully processed on BMC parcel sorters 
although they do not conform to the machinability standards in DMM 
C050.4.1. If this is the case, a BMC plant manager may authorize a 
mailer to enter such parcels as machinable parcels if the parcels are 
tested on BMC parcel sorters and prove to be machinable. Such an 
authorization only applies to mail that is both entered at a post 
office within the authorizing BMC's service area and is for delivery to 
an address within that BMC's service area. These changes also would 
apply to Standard mail.
(4) Machinable Parcel Preparation Requirements (DMM M045 and M710)
    The rules for sacking and palletizing Parcel Post machinable 
parcels are clarified to point out that they are optional preparation 
methods for Parcel Post. In addition, the sacking rules are modified to 
delete the 1,000 cubic inch option for preparing sacks of machinable 
parcels. If Parcel Post mailers choose to sack under the machinable 
parcel preparation standards, sacks for a 5-digit, ASF, or BMC 
destination would have a minimum volume requirement of 10 pieces or 20 
pounds.
(5) Postage Payment (P700)
    P700 would be clarified to indicate that precanceled stamps must 
not be used for payment of any Parcel Post mail, including matter at 
single-piece rates.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights
    Bound Printed Matter (BPM) rates are proposed to increase by an 
average of 18.1%. New destination entry discounts for Presorted rate 
and Carrier Route rate mailings of Bound Printed Matter are being 
offered to encourage the deposit of mail at the destination BMC, SCF, 
or delivery unit. An annual destination entry mailing fee for mail 
entered at destination entry rates of $125 is proposed. The barcoded 
discount for qualifying Presorted Bound Printed Matter machinable 
parcels would remain at $0.03 per piece.
b. Bound Printed Matter Rate Structure
    The local zone rate category would be eliminated for Bound Printed 
Matter. Destination entry rates are proposed for Presorted and Carrier 
Route Bound Printed Matter entered at destination BMCs, SCFs, and 
delivery units. To qualify for destination entry rates mailers would 
need to pay the annual destination entry mailing fee described above 
and meet the preparation requirements in DMM E752 that are summarized 
below. There are no destination entry rates for single-piece Bound 
Printed Matter.
    Another major change is that pieces weighing less than 16 ounces 
would be eligible for Bound Printed Matter rates; however, there are no 
proposed rates for pieces less than 1.5 pounds (for single piece) and 1 
pound (for Presorted and Carrier Route). Therefore, single-piece Bound 
Printed Matter that weighs less than 1 pound will be charged the 1.5-
pound rate and Presorted and Carrier Route Bound Printed Matter that 
weighs less than 1 pound will be charged the full 1-pound rate, plus 
the applicable per-piece charge.
c. Bound Printed Matter Mail Preparation Changes
(1) Rate Markings (DMM M012 and M720)
    Two changes are proposed to the current marking requirements for 
Bound Printed Matter. The first would give mailers the option to use 
the abbreviation ``BPM'' as the basic (sub-class) marking that must 
appear in the postage area on each piece. The second would be to 
prohibit use of the ``Presorted Standard'' (or ``PRSRT STD'') marking 
on Presorted and Carrier Route Bound Printed Matter after a 1-year 
grace period. Because of the renaming of Standard Mail (B) to Package 
Services, ``Standard'' and ``STD'' would no longer be applicable as a 
class of mail description for Bound Printed Matter. Mailers would have 
until January 1, 2002 to discontinue use of the ``Presorted Standard'' 
(or ``PRSRT STD'') marking.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M700)
    It is proposed to change the abbreviation ``STD'' or ``STD B'' on 
the contents line of sack and pallet labels for Bound Printed Matter to 
``PSVC'' (an abbreviation for Package Services).
(3) Address Matching Requirements for Presorted Bound Printed Matter 
(DMM E712)
    The Postal Service is proposing that all 5-digit ZIP Codes included 
in addresses on pieces claimed at Presorted Bound Printed Matter rates 
must be verified and corrected within 12 months before the mailing date 
using a USPS-approved method. The mailer must certify that this 
standard has been met when the mail is presented to the USPS. This 
standard applies to each

[[Page 52486]]

address individually, not to a specific list or mailing. See E712.3.1.
(4) Dimensions for Machinable Parcels (DMM M050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a 
would change to not less than 6 inches long, 3 inches high, \1/4\ inch 
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick 
would be subject to the 3\1/2\-inch height minimum under C010.) The 
current minimum weight is 8 ounces unless certain other conditions are 
met. Some parcels may be successfully processed on BMC parcel sorters 
although they do not conform to the machinability standards in DMM 
C050.4.1. If this is the case, a BMC plant manager may authorize a 
mailer to enter such parcels as machinable parcels if the parcels are 
tested on BMC parcel sorters and prove to be machinable. Such an 
authorization only applies to mail that is both entered at a post 
office within the authorizing BMC's service area and is for delivery to 
an address within that BMC's service area. These changes also would 
apply to Standard mail.
(5) Sortation for Sacked Presorted Bound Printed Matter (DMM M722)
    It is proposed to require all flats and all irregular parcels that 
weigh 10 pounds or less to be prepared in packages prior to sacking. 
Machinable parcels would still be placed directly in sacks without 
packaging, and irregular parcels weighing more than 10 pounds would be 
placed into sacks without packaging. The provision for preparing sacks 
to a particular presort destination based on a 1,000 cubic inch minimum 
criteria would be deleted.
    For flats prepared in sacks, mailers would be required to prepare 
packages whenever there are at least 10 pieces or 10 pounds of mail, 
whichever occurs first, for a presort destination (5-digit, 3-digit, 
ADC), with remaining pieces placed in mixed ADC packages. The maximum 
weight of any package would be 20 pounds, except that 5-digit packages 
placed in 5-digit sacks could weigh up to 40 pounds. This will allow 
packages prepared in other than 5-digit sacks to be processed on small 
parcel and bundle sorters (SPBSs). Each physical package would be 
required to contain at least 2 addressed pieces except for mixed ADC 
packages. These packages would be required to be placed in sacks 
whenever there were at least 20 pieces or 20 pounds, whichever occurs 
first, for a sack destination (5-digit, 3-digit, optional SCF, ADC), 
with remaining packages placed in mixed ADC sacks.
    For Presorted irregular parcels, mailers would be required to 
prepare the mail in packages if the individual pieces weighed 10 pounds 
or less. Packages would be prepared whenever there were at least 10 
pieces or 10 pounds to a presort destination, whichever occurs first. 
The package destinations would be the same as for flat-size pieces (5-
digit, 3-digit, ADC, and mixed ADC). Mixed ADC packages could contain 
fewer than 10 pieces or 10 pounds of mail. Sortation to ADCs would be 
made using DMM L004 instead of L603 and mixed ADC sacks would be 
labeled using DMM L004 instead of L604. The maximum weight of any 
package would be 20 pounds, except that 5-digit packages placed in 5-
digit sacks could weigh up to 40 pounds. Each physical package would be 
required to contain at least 2 addressed pieces except for mixed ADC 
packages. These packages would be required to be placed in sacks 
whenever there were at least 10 pieces or 20 pounds, whichever occurs 
first, for a sack destination (5-digit, 3-digit, optional SCF, ADC), 
with remaining packages placed in mixed ADC sacks.
    Presorted irregular parcels that weigh over 10 pounds would not be 
packaged, but would be placed in 5-digit, 3-digit, optional SCF and ADC 
sacks whenever there were 10 or more pieces or 20 or more pounds, 
whichever occurs first, for a sack destination. Remaining pieces would 
be placed in mixed ADC sacks. Sortation to ADCs would be made using DMM 
L004 instead of L603 and mixed ADC sacks would be labeled using DMM 
L004 instead of L604. Irregular parcel-size pieces that weigh over 10 
pounds would be required to be individually enveloped, placed in a 
full-length sleeve or wrapper, or be polywrapped.
    For machinable parcels, there would be no change in sortation other 
than eliminating the option to use 1,000 cubic inches as a minimum 
sacking criteria as described above.
(6) Sortation for Sacked Carrier Route Bound Printed Matter (DMM M020, 
M723)
    For flat-size mail the basic eligibility requirement to qualify for 
carrier route rates of a minimum of 10 pieces/20 pounds/1,000 cubic 
inches of mail for the same carrier route would be changed to require a 
minimum of 10 pieces or 20 pounds of mail prepared in a package or 
packages for the same carrier route. In addition, the maximum weight of 
any flat-size package will be 40 pounds. Each physical package would be 
required to contain a minimum of two addressed pieces. The only 
exception to a minimum two-piece package is that the last physical 
package to an individual carrier route destination could contain less 
than the minimum package size and could consist of a single addressed 
piece provided that all other packages to that carrier route 
destination meet the minimum package size and contain at least two 
addressed pieces, and that the total group of pieces to that carrier 
route meets the Carrier Route rate eligibility minimum in E712. 
Packages of flat-sized mail would be sacked for an individual carrier 
route whenever there were at least 20 pieces or 20 pounds of mail for a 
carrier route. Remaining carrier route packages would be sacked in 5-
digit carrier routes sacks or, at the mailer's option, be sacked to 5-
digit scheme carrier routes sacks using L001.
    For irregular parcel-size mail the basic eligibility requirement of 
at least 10 pieces or 20 pounds of mail for the same carrier route 
would be retained.
    For Carrier Route irregular parcels, mailers would be required to 
prepare the mail in packages if the individual pieces weighed 10 pounds 
or less. Packages would be prepared whenever there were at least 10 
pieces or 20 pounds of mail to an individual carrier route. The maximum 
weight of any package would be 40 pounds. Each physical package would 
be required to contain a minimum of two addressed pieces. The only 
exception to a minimum two-piece package is that the last physical 
package to an individual carrier route destination could contain less 
than the minimum package size and could consist of a single addressed 
piece provided that all other packages to that carrier route 
destination meet the minimum package size and contain at least two 
addressed pieces, and that the total group of pieces to that carrier 
route meets the Carrier Route rate eligibility minimum in E712.
    Carrier route packages of irregular parcels would be required to be 
placed in direct carrier route sacks when there were 10 or more pieces 
or 20 or more pounds to a carrier route. Carrier route packages that 
could not be placed in direct carrier route sacks would be placed in 5-
digit carrier routes sacks. Preparation of 5-digit scheme carrier 
routes sacks for irregular parcels would not be permitted.
    For irregular parcels weighing over 10 pounds, the mail would not 
be prepared in packages, but would be placed only in direct carrier 
route sacks that each contained a minimum of 20 pounds of mail.
    Machinable parcels would be permitted to qualify for Carrier Route 
Bound Printed Matter rates if placed in

[[Page 52487]]

direct carrier route sacks that each contained a minimum of 10 pieces 
or 20 pounds of mail. (Machinable parcels prepared on pallets under 
M045 would not be eligible for Carrier Route Bound Printed Matter 
rates.)
    The provisions for marking and sortation of residual pieces that do 
not qualify for the Carrier Route Bound Printed Matter rates would 
change. Such pieces would no longer be sorted to carrier route and 
would no longer be permitted to bear the ``Carrier Route Presort'' 
marking. Such residual pieces would be required to be marked and sorted 
in accordance with the requirements for Presorted rate mailings and 
would continue to qualify for the Presorted rates (M723.1.5).
(7) Preparation of Packages on Pallets (DMM M040 and M045)
    Flats prepared as packages on pallets would be permitted to be 
palletized using scheme sort (DMM L001). For flat-size pieces prepared 
in a copalletized mailing job that contains both a Presorted rate 
mailing and a Carrier Route rate mailing, it is proposed that separate 
5-digit pallets must be prepared for carrier route mail (optional 5-
digit scheme carrier routes and required 5-digit carrier routes 
pallets) and separate 5-digit pallets must be prepared for Presorted 
rate mail (optional 5-digit scheme and required 5-digit pallets).
    For irregular parcels prepared as packages on pallets, mailers 
would continue to co-palletized Carrier Route and Presorted mail on the 
same 5-digit pallet. Scheme sortation would not be permitted for 
packages of irregular parcels on pallets.
    For flats and irregular parcels, packages would be required to be 
made to a required package destination (carrier route, 5-digit, 3-
digit, ADC) whenever there were 10 or more pieces or 10 or more pounds 
for a presort destination. ADC packages would be prepared using DMM 
L004 instead of L603. The maximum physical package size would be 20 
pounds except as follows. For Presorted rate mail, 5-digit packages 
could weigh up to 40 pounds if placed on a 5-digit scheme (flats only) 
or 5-digit pallet. For Carrier Route rate mail, flat-size carrier route 
packages could weigh up to 40 pounds if they were placed on 5-digit 
scheme carrier routes, or 5-digit carrier routes pallets, and irregular 
parcel-size carrier route packages could weigh up to 40 pounds if they 
are placed on a 5-digit pallet. Each physical package would be required 
to contain at least 2 pieces. If individual pieces weigh more than 10 
pounds and therefore could not meet both the 2-piece package minimum 
and the 20-pound package maximum, they could not be prepared as 
packages on pallets (except in those instances where 40-pound packages 
are permitted as described above). Such pieces that weigh over 10 
pounds would be required to be prepared either as machinable parcels on 
pallets (eligible only for Presorted rates) or in sacks under M722 
(Presorted rates) and/or M723 (Carrier Route rates). The new 20-pound 
package weight limit for flats and irregular parcels will allow the 
packages to be processed on small parcel and bundle sorters (SPBSs).
(8) PAVE Certification and Package Reallocation
    This proposal does not include a requirement for the use of 
standardized documentation or PAVE-certified software for Bound Printed 
Matter. The Postal Service plans to develop PAVE tests for Bound 
Printed Matter subsequent to implementation of the R2000-1 rate case. 
At that time, standardized documentation requirements will be developed 
and a Federal Register proposed rule to require either standardized 
documentation or use of PAVE-certified software for Presorted and 
Carrier Route Bound Printed Matter will be published for comment. 
Because use of optional package reallocation to protect SCF and BMC 
pallets requires use of PAVE-certified software, use of package 
reallocation for Bound Printed Matter will not be offered as an option 
at the time the rates from the R2000-1 rate case are implemented. Use 
of package reallocation will be offered for Bound Printed Matter once 
use of PAVE-certified software becomes available.
(9) Bedloaded Bundles (DMM M722, M723)
    The provisions for preparing bedloaded bundles in current DMM 
M630.7.0 would be removed. A ``bundle'' is described as a group of 
packages secured together as a unit that equates to a sack. The Postal 
Service does not believe that any mailers are currently preparing true 
bedloaded ``bundles,'' although some mailers do prepare bedloaded 
``packages.'' The Postal Service is proposing preparation rules for 
Bound Printed Matter that are designed to reduce handling and 
processing costs. Bedloaded packages or bundles are generally not cost-
efficient for the Postal Service to handle and process. Therefore the 
proposed sortation rules would eliminate preparation of bedloaded 
bundles, and would allow mailers to prepare bedloaded packages only for 
mail that is prepared for and entered at the DDU rates. Such bedloaded 
packages may weigh up to 40 pounds each. See M722 and M723.
(10) Destination Bulk Mail Center (DBMC) Rates (DMM E752)
    Destination Bulk Mail Center (DBMC) rates apply to Presorted and 
Carrier Route Bound Printed Matter mailings that are prepared in any 
permissible sack or pallet level and that are deposited at a BMC or 
ASF, 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 E751.5.0, 
and are placed in a sack or pallet that is labeled to the BMC or ASF 
where deposited, or labeled to a postal facility within the service 
area of that BMC or ASF under Exhibit E751.5.0.
    Flats or irregular parcels in an ADC sack or in a palletized ADC 
package would be eligible for the DBMC rates if the ADC facility ZIP 
Code (as shown in Line 1 of the corresponding sack label or the ADC 
facility that is the destination of the palletized ADC package as would 
be shown on an ADC sack label for that facility using DMM L004, Column 
B) is within the service area of the BMC or ASF at which the sack is 
deposited.
    Flats or irregular parcels in mixed ADC sacks would qualify for the 
DBMC rates only if all the pieces in the sack are for the service area 
of the DBMC or DASF as shown in Exhibit E751.5.0. Mailers who opt to 
claim the DBMC rates for mail in mixed ADC sacks would be required to 
prepare separate mixed ADC sacks for pieces eligible for and claimed at 
the DBMC rate and for pieces not claimed at the DBMC rate.
    Machinable parcels palletized under M045 or sacked under M722 could 
be sorted to destination BMCs under L601 or to destination BMCs and 
ASFs under L601 and L602. Sortation of machinable parcels to ASFs would 
be optional but would be required for mail with a 3-digit ZIP Code 
prefix within the ASF service area in Exhibit E751.5.0 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 rates are claimed, 
under applicable volume standards, using L602. Mailers may also opt to 
sort machinable parcels only to destination BMCs under L601. If 
machinable parcels are sorted to only destination BMCs under L601, then 
only mail for 3-digit ZIP Codes served by a BMC as listed in Exhibit 
E751.5.0 would be eligible for DBMC rates (mail for 3-digit ZIP Codes 
served by an ASF in Exhibit E751.5.0 sorted to the BMC

[[Page 52488]]

pallet would not eligible for DBMC rates, nor would mail for 3-digit 
ZIP Codes that do not appear in Exhibit E751.5.0).
    Machinable parcels in mixed BMC sacks or on mixed BMC pallets that 
are sorted to the origin BMC under M045 or M722 would be 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.
(11) Destination Sectional Center Facility (DSCF) rates (DMM E752)
    Destination Sectional Center Facility (DSCF) rates would apply to 
Presorted and Carrier Route Bound Printed Matter mailings that meet all 
of the following conditions:
    (a) Are eligible for and prepared to qualify for Presorted, or 
Carrier Route rates.
    (b) Are deposited at an SCF listed in L005, except that machinable 
parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit 
E751.6.0 must be entered at the corresponding BMC facility shown in 
that Exhibit (not at the SCF) unless an exception is requested and 
granted. An exception to Exhibit 751.6.0 must be requested at least 15 
days in advance of the mailing in writing from the area manager of 
operations support who has jurisdiction over the BMC and SCF. 
Exceptions, if granted, will be for a limited time.
    (c) Are addressed for delivery to one of the 3-digit ZIP Codes 
served by the SCF where deposited under L005.
    (d) Are placed in a sack or on a pallet (subject to the standards 
for the rate claimed) that is labeled to the DSCF where deposited, or 
labeled to a postal facility within the service area of that SCF (see 
L005).
    Flats in sacks for the carrier route, 5-digit carrier routes 
scheme, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort 
levels would be able to claim DSCF rates under the conditions described 
above. Flats on 5-digit scheme carrier routes, 5-digit carrier routes, 
5-digit scheme, 5-digit, 3-digit, SCF, and ASF pallets would be able to 
claim DSCF rates under the conditions described above.
    Irregular parcels in sacks for the carrier route, 5-digit carrier 
routes, 5-digit, 3-digit, and optional SCF sort levels would be able to 
claim DSCF rates under the conditions described above. Irregular 
parcels on 5-digit, 3-digit, SCF, and ASF pallets would be able to 
claim DSCF rates under the conditions described above.
    Machinable parcels in direct carrier route sacks, in 5-digit sacks, 
or on 5-digit pallets would be able to claim DSCF rates under the 
conditions described above. Machinable parcels prepared to claim 
Carrier Route rates would be eligible for DSCF rates only when prepared 
in direct carrier route sacks (machinable parcels would qualify for 
Carrier Route rates only when prepared in direct carrier route sacks). 
Machinable parcels on 5-digit pallets would be able to claim DSCF rates 
under the conditions described above. Note that machinable parcels for 
the 5-digit ZIP Codes listed in Exhibit E751.6.0 would be required to 
be entered at the BMC to claim DSCF rates.
(12) Destination Delivery Unit (DDU) Rates (DMM E752)
    Destination Delivery Unit (DDU) rates apply to Presorted and 
Carrier Route rate Bound Printed Matter mailings that are addressed for 
delivery within the ZIP Code(s) served by the destination delivery unit 
and are deposited at the appropriate destination delivery unit 
facility.
    For flat-size mail, DDU rates would be available only for mail 
prepared to qualify for Carrier Route Bound Printed Matter rates that 
is prepared in carrier route, optional 5-digit carrier routes scheme, 
and 5-digit carrier routes sacks; on 5-digit scheme carrier routes 
scheme and 5-digit carrier routes pallets; or in bedloaded carrier 
route packages. Flat-size mail must be entered at the facility where 
the carrier cases flat-size mail as shown in the Drop Ship Product.
    For irregular parcels, DDU rates would be available for carrier 
route packages and 5-digit packages prepared in direct carrier route, 
5-digit carrier routes, and 5-digit sacks, or on 5-digit pallets. 
Irregular parcels prepared as bedloaded carrier route packages or 
bedloaded 5-digit packages also would be eligible for DDU rates.
    For machinable parcels, DDU rates would be available for Carrier 
Route rate parcels prepared in direct carrier route sacks and for 
Presorted rate parcels prepared in 5-digit sacks or on 5-digit pallets.
    To claim the DDU rates, both irregular and machinable parcels would 
be required to be entered at the facility that delivers parcels to the 
addresses appearing on the deposited pieces. Mailers would use the Drop 
Ship Product to determine the location of the 5-digit delivery facility 
and whether it can handle pallets. When the Drop Ship Product shows 
that parcels for a single 5-digit ZIP Code area is delivered out of 
more than one postal facility, then the facility from which the 
majority of city carrier routes are delivered would be used as the 
facility at which the DDU mail must be entered and to determine whether 
that facility can handle pallets, unless the 5-digit ZIP Code is listed 
in Exhibit E751.7.0 or Exhibit E751.8.0. For ZIP Codes in E751.7.0 and 
Exhibit E751.8.0, mailers would use the name of the facility associated 
with the 5-digit ZIP Code on the respective exhibit as the facility at 
which DDU mail for that 5-digit ZIP Code mail must be entered.
(13) Destination Entry Mail Preparation--Plant-Verified Drop Shipment 
(PVDS) (DMM E752)
    Pieces would be required to be part of a mailing of at least 300 
pieces of Presorted Bound Printed Matter or part of a mailing of at 
least 300 pieces of Carrier Route Bound Printed Matter to qualify for 
DBMC, DSCF, and DDU rates. When Presorted Bound Printed Matter or 
Carrier Route Bound Printed Matter mailings are submitted under PVDS 
procedures, mailers would be able to use the total of all line items 
for all destinations on a PVDS register or PVDS postage statement to 
meet the respective 300-piece minimum volume requirements. This means 
that a mailer may enter fewer than 300 pieces per Presorted or Carrier 
Route mailing at an individual destination, provided there is a total 
of at least 300 Presorted rate pieces and/or 300 Carrier Route rate 
pieces for all of the entry points for that single mailing job listed 
on the PVDS register or PVDS postage statement.
(14) Detached Address Label Mailings (DMM A060)
    Currently, Bound Printed Matter may be prepared with detached 
address labels (DALs) only when for delivery in the local zone of the 
post office of mailing. The local zone rates are removed under this 
rate proposal. Accordingly, revised preparation requirements for use of 
DALs with Bound Printed Matter mailings are included in this proposal. 
Under the proposal, mailers would prepare Bound Printed Matter with 
DALs under either a pallet preparation option or a sacking preparation 
option.
    When prepared on pallets, mailers would be permitted to enter mail 
prepared with DALs at any post office where mail is verified provided 
only 5-digit pallets are prepared and if the following additional 
requirements and restrictions are met. The 5-digit pallets would be 
required to meet the minimum volume and other requirements for pallet 
preparation under M040 and M045, except that for flat-size mail, 
separate 5-digit pallets for Carrier Route rate and for Presorted rate 
mail would

[[Page 52489]]

not be required. The mail would not be permitted to be prepared on 
pallets when the Drop Ship Product indicates that the delivery unit 
that serves the 5-digit pallet destination cannot handle pallets. The 
destination delivery unit is determined using the Drop Ship Product 
under the provisions for the DDU rate in E752. (For delivery units that 
cannot handle pallets mail with DALs would be required to be prepared 
in sacks.) The trays or cartons of DALs would be required to be 
prepared under A060.3.0 and placed on the same pallet as the pieces and 
trays of DALs and the items would be required to be stretch-wrapped 
together as one unit.
    For mail prepared with DALs in sacks, the matter would be required 
to be prepared in 5-digit sacks and entered at the destination delivery 
unit. The destination delivery unit would be determined using the Drop 
Ship Product under the provisions for the DDU rate in DMM E752. The 
DALs would be required to be packaged under A060.3.0 and presented to 
the destination delivery unit with the accompanying items to be 
distributed with the DALs.
(15) Ancillary Service Endorsements
    It is proposed that undeliverable-as-addressed (UAA) Bound Printed 
Matter pieces mailed with no special service (e.g., Delivery 
Confirmation, insured), and with no ancillary service endorsement, 
would be disposed of by the USPS as waste at the delivery unit. This 
would make the handling of undeliverable-as-addressed Bound Printed 
Matter pieces that are not mailed with a special service or an 
ancillary service endorsement the same as for Standard Mail. Mailers of 
Bound Printed Matter who want to have their undeliverable-as-addressed 
pieces forwarded and returned could continue to choose the appropriate 
ancillary service endorsement to obtain such service. No other changes 
to the treatment of undeliverable-as-addressed Package Services mail 
are proposed.
(16) Postage Payment
    DMM P700 would be amended to clarify that precanceled stamps may 
not be used for payment of Bound Printed Matter.

9. Media Mail (Formerly Special Standard Mail)

a. Media Mail Rate Highlights
    Media Mail (formerly Special Standard Mail) rates would increase by 
an average of 4.9%. The barcoded discount for qualifying Media Mail 
would remain at $0.03 per piece. Separate rate schedules would be 
implemented for Media Mail and Library Mail as the shared rate 
structure would be discontinued. It is proposed to increase the annual 
presort mailing fee for Media Mail to $125.
b. Media Mail Rate Structure
    It is proposed to implement separate rate schedules for Media Mail 
and Library Mail.
c. Media Mail (Formerly Special Standard Mail) Preparation Changes
(1) Rate Marking (DMM M012 and M730)
    Special Standard Mail is being renamed ``Media Mail,'' and the 
marking that is required to appear on each piece would be changed from 
``Special Standard'' to ``Media Mail.'' A phase-in period through 
January 1, 2002, is proposed in order to give mailers time to adjust to 
this change and deplete any existing stocks of permit imprints that may 
bear the `` Special Standard'' marking.
(2) Sack and Pallet Labels (DMM M031, M045, and M730)
    The abbreviation ``STD'' or ``STD B'' that currently appears on 
sack and pallet labels for Package Services mailings would be changed 
to ``PSVC'' (an abbreviation for Package Services).
(3) Clarification of Preparation Requirements
    Current M630.4.0 provides for preparing Media Mail as bedloaded 
bundles under current M630.7.0. However, current M630.7.0 provides only 
for preparation of Bound Printed Matter as bedloaded bundles, and the 
eligibility requirements for the Media Mail rates in current E630.4.0 
provide only for preparation in sacks, on pallets, or as outside 
parcels prepared as prescribed by the postmaster of the mailing office. 
Accordingly, the provisions for preparing bedloaded bundles of Media 
Mail have been deleted from proposed new M730 that contains the 
requirements for presorted Media Mail. Current E630.4.0 (renumbered as 
E713) provides for preparing 5-digit and BMC bundles of Media Mail on 
pallets. The terminology in this section would be changed to provide 
for ``packages'' of Media Mail on pallets. Furthermore, the reference 
in current M630.4.0 (new M730) that refers to preparing mail according 
to the machinable parcel preparation rules has been deleted from 
proposed DMM M730. There are no provisions for such preparation to 
qualify for presorted Media Mail rates in proposed E713. The option to 
prepare sacks and qualify for presorted 5-digit or BMC rates based on a 
minimum of 1,000 cubic inches of mail would be deleted; however, the 
eight-piece or 20-pound minimum per 5-digit sortation level and the 
four-piece or 20 pound minimum per BMC sortation level would be 
retained.
(4) Postage Payment (DMM P700)
    DMM P700 would be amended to clarify that precanceled stamps may 
not be used for payment of Media Mail.

10. Library Mail

a. Library Mail Rate Highlights
    Library Mail rates would increase by an average of 4.5%. The 
barcoded discount for qualifying Library Mail would remain at $0.03 per 
piece. Separate rate schedules would be implemented for Media Mail and 
Library Mail as the shared rate structure would be discontinued. It is 
proposed to increase the annual presort mailing fee for Library Mail to 
$125.
b. Library Mail Rate Structure
    It is proposed to implement separate rate schedules for Library 
Mail and Media Mail.
c. Library Mail Preparation Changes
(1) Rate Markings (DMM M012 and M740)
    The optional use of ``Library Rate'' as a rate marking for Library 
Mail would be discontinued. Matter mailed at Library Mail rates would 
be required to use only the marking ``Library Mail.'' A phase-in period 
through January 1, 2002, is proposed in order to give mailers time to 
adjust to this change and deplete any existing stocks of permit 
imprints that may bear the ``Library Rate'' marking.
(2) Sack and Pallet Labels (DMM M031, M045, and M740)
    The abbreviation ``STD'' or ``STD B'' that currently appears on 
sack and pallet labels for Package Services mailings would be changed 
to ``PSVC'' (an abbreviation for Package Services).
(3) Sack Preparation Minimums (DMM M740)
    The option to prepare sacks and qualify for presorted 5-digit or 
BMC rates based on a minimum of 1,000 cubic inches of mail would be 
deleted (see M740).
(4) Postage Payment (DMM P700)
    DMM P700 would be amended to clarify that precanceled stamps may 
not be used for payment of Library Mail.

[[Page 52490]]

11. Special Services and Other Services

a. Address Changes for Election Boards (DMM A910)
    The fee is proposed to increase from $0.17 to $0.24 for each 
address card. There are no classification changes proposed for this 
service. See DMM R900.12.3.
b. Address Correction Notifications (DMM F030)
    The manual (hard-copy) fee is proposed to increase from $0.50 to 
$0.60 for each notification. There is no proposed change to the 
automated (electronic) fee notification (currently $0.20 each). There 
are no classification changes proposed for this service. See DMM 
R900.1.0.
c. Bulk Parcel Return Service (DMM S924)
    The per-piece charge is proposed to decrease from $1.75 to $1.65 
for each piece returned under Bulk Parcel Return Service (BPRS). It is 
proposed that the annual BPRS permit fee increase from $100 to $125. It 
is proposed to establish a new annual accounting fee of $375 for BPRS. 
This fee covers the costs of providing account maintenance services to 
mailers and is consistent with accounting fees charged for other 
special services. Current BPRS permit holders would have 30 days from 
the date of implementation of this classification change to pay their 
initial annual accounting fee. See DMM R900.3.0.
    No special services would be available for pieces returned through 
BPRS.
d. Business Reply Mail
(1) Business Reply Mail (BRM) (DMM S922)
    It is proposed to increase the annual business reply mail (BRM) 
permit fee from $100 to $125.
    The per-piece charge for low-volume BRM (BRM without an annual 
accounting fee) is proposed to increase from $0.30 to $0.35. This per-
piece charge is in addition to single-piece First-Class Mail (or 
Priority Mail) postage. The per-piece charge for high-volume BRM (BRM 
with an annual accounting fee) is proposed to increase from $0.08 to 
$0.10. This per-piece charge is in addition to single-piece First-Class 
Mail (or Priority Mail) postage. It is proposed to increase the annual 
accounting fee, required for high-volume BRM, from $300 to $375.
(2) Qualified Business Reply Mail (QBRM) (DMM E150, S922)
    The discounted automation rate for qualified business reply mail 
(QBRM) is proposed to increase from $0.30 to $0.31 as described under 
the First-Class Mail Summary. The annual accounting fee (required to 
participate in QBRM) is proposed to increase from $300 to $375.
    It also is proposed to split QBRM into two categories with 
different per-piece charges to mirror the current fee structure of BRM. 
The first category is the existing classification and will be called 
``low-volume'' QBRM. The per-piece charge for low-volume QBRM is 
proposed to increase from $0.05 to $0.06. This per-piece charge is in 
addition to the lower QBRM First-Class Mail postage listed in R100.
    The proposed new classification, called ``high-volume QBRM,'' 
recognizes that, for large volume users, some costs are relatively 
fixed, rather than varying with marginal volume. The high-volume QBRM 
category includes a lower per-piece charge and requires payment of a 
new (separate) quarterly fee in addition to the annual accounting fee. 
It is proposed to charge $0.03 per piece returned under high-volume 
QBRM service. This per-piece charge is in addition to the lower QBRM 
First-Class Mail postage listed in R100. It is proposed to charge an 
$850.00 quarterly fee (in addition to the $375.00 annual accounting 
fee). Mailers may ``opt in'' to high-volume QBRM by paying the 
quarterly fee at any time as their volume warrants, thereby paying 
lower per-piece charges when they expect a larger volume of returned 
pieces. Quarterly fees would apply to any three consecutive calendar 
months, beginning with the first calendar day of the first month and 
ending on the last calendar day of the third month. If the quarterly 
fee is paid on or before the 15th of the month, then the quarterly fee 
is counted as if it was paid on the first day of that calendar month, 
but the lower per-piece charges begin on the day the fee is paid. If 
the quarterly fee is paid after the 15th of the month, then the lower 
per-piece charges begin immediately, but the quarterly fee is credited 
as if it was paid on the first day of the following calendar month and 
continues through three calendar months. Mailers may not apply for 
``retroactive'' refunds of per-piece charges. See DMM R900.4.0
(3) Nonletter-Size Business Reply Mail (DMM S922)
    Clarifying language would be added to ensure that the maintenance 
fee applies to the bulk weight-averaging method only. No changes are 
proposed to the per-piece charge or to the monthly maintenance fee. The 
annual business reply mail permit fee is proposed to increase from $100 
to $125. The annual accounting fee is proposed to increase from $300 to 
$375. See DMM R900.4.0.
e. Carrier Sequencing of Address Cards (DMM A920)
    The fee is proposed to increase from $0.20 to $0.25 for each card 
removed due to an incorrect or undeliverable address and for each card 
added with a new address. There are no classification changes proposed 
for this service. See DMM R900.2.0.
f. Certificate of Mailing (DMM S914)
    For individual pieces, the fee for the original certificate of 
mailing is proposed to increase from $0.60 to $0.75. While no change is 
proposed to the firm mailing book fee, the fee for an additional copy 
of a certificate of mailing is proposed to increase from $0.60 to 
$0.75.
    For bulk quantities, the fee for one certificate of mailing (for 
the first 1,000 pieces) is proposed to increase from $3.00 to $3.50. 
There is no proposed change to the fee for a certificate for each 
additional group of 1,000 pieces. The fee for an additional copy of a 
bulk certificate of mailing is proposed to increase from $0.60 to 
$0.75.
    There are no classification changes proposed for this service. See 
DMM R900.6.0.
g. Certified Mail (DMM S912)
    The fee is proposed to increase from $1.40 to $2.10 in order to 
cover newly estimated costs for this service. See DMM R900.7.0.
h. Collect on Delivery (COD) (DMM S921)
    Fees are proposed to increase by $.50 for every $100 value level. 
It is proposed to increase the maximum COD value level from $600 to 
$1,000. No change is proposed to the fees for registered COD, the 
notice of nondelivery, or the alteration of COD charges (Form 3849-D). 
The money order limit is proposed to remain at $700; therefore, if the 
recipient pays in cash for COD amounts over $700, then the USPS will 
send two postal money orders to the mailer (and collect two money order 
fees from the recipient). See DMM R900.8.0.
i. Correction of Mailing Lists (DMM A910)
    The charge per correction is proposed to increase from $0.20 to 
$0.25. In conjunction, the minimum charge per list is proposed to 
increase from $7.00

[[Page 52491]]

to $7.50. There are no classification changes proposed for this 
service. See DMM R900.12.0.
j. Delivery Confirmation (DMM S918)
    The fee for retail option Priority Mail Delivery Confirmation 
(i.e., purchased by a customer over a retail counter) is proposed to 
increase from $0.35 to $0.40. The fee for retail option Package 
Services Delivery Confirmation is proposed to increase from $0.60 to 
$0.65. No change is proposed to the fees for electronic option Delivery 
Confirmation for Priority Mail and Package Services.
    It is proposed to extend electronic option Delivery Confirmation 
service to Standard Mail (both Regular and Nonprofit subclasses). 
Delivery Confirmation service would be limited to Standard Mail parcels 
that are subject to the residual shape surcharge. No retail option is 
proposed for Standard Mail. The proposed fee for electronic option 
Delivery Confirmation for Standard Mail is $0.25 per piece, which 
mirrors the current fee for Package Services. See DMM R900.9.0.
k. Express Mail Insurance (DMM S500)
    Fees for Express Mail insurance are proposed to increase. There are 
no classification changes proposed for this service. See DMM R900.10.0.
l. Insurance (DMM S913)
    Fees for insurance are proposed to increase for all value levels. 
It is proposed to offer separate bulk discounts for unnumbered and 
numbered insurance. In addition, it is proposed to extend bulk 
insurance to Standard Mail (both regular and nonprofit). Bulk insurance 
would be limited to Standard Mail parcels that are subject to the 
residual shape surcharge. No regular insurance is proposed for Standard 
Mail. See DMM R900.11.0.
    It is proposed to remove the requirement that insured pieces sent 
at First-Class Mail and Priority Mail rates be marked ``Standard Mail 
Enclosed.''
m. Mailing Fees
    Presort mailing fees and destination entry mailing fees for all 
classes of mail are proposed to increase. Specific fees and 
classification changes are included under the separate summary for each 
class of mail.
n. Merchandise Return Service (DMM S923)
    It is proposed to eliminate the per-piece (transaction) fee for 
parcels returned to the permit holder via merchandise return service 
(MRS). It is proposed to establish a new annual accounting fee of $375 
for MRS. This fee covers the costs of accounting services provided to 
mailers and is consistent with accounting fees charged for other 
special services. Current MRS permit holders would have 30 days from 
the date of implementation of this classification change to pay their 
initial annual accounting fee. See DMM R900.13.0.
    It is proposed to allow customers (those who use merchandise return 
service labels to return a parcel to the permit holder) to add 
insurance to a MRS parcel at their own discretion and expense. No other 
special services could be added by the sender. Previously, insurance 
could be added to a parcel only if specified by the permit holder. It 
is proposed to remove the requirement that MRS parcels sent at First-
Class Mail and Priority Mail rates be marked ``Standard Mail 
Enclosed.''
    It is proposed that parcels that do not bear a class or rate 
marking, regardless of weight, would be treated as Parcel Post and 
would be charged Parcel Post Inter-BMC/ASF rates.
    These same changes are proposed to apply to penalty merchandise 
return service.
o. Money Orders (DMM S020)
    It is proposed to increase the fee for domestic money orders from 
$0.80 to $0.90 per money order. It is proposed to increase the fee for 
APO/FPO money orders from $0.30 to $0.35 per money order. It is 
proposed to increase the inquiry fee from $2.75 to $3.00. There are no 
classification changes proposed for this service and the maximum amount 
would remain at $700. See DMM R900.15.0.
p. Parcel Airlift Service (PAL) (DMM S930)
    There are no proposed fee or classification changes for this 
service. See DMM R900.16.0.
q. Permit Imprint Application Fee (DMM P040)
    The application fee for permit imprints is proposed to increase 
from $100 to $125. Other kinds of permit fees (e.g., business reply 
mail) are covered under separate summary sections. See DMM R900.17.0.
r. Pickup Service (DMM D010)
    The pickup service fee is proposed to increase from $8.25 to $10.25 
per pickup. There are no classification changes proposed for this 
service. See DMM R900.18.0.
s. Post Office Boxes, Caller Service, and Reserve Call Numbers (DMM 
D910 and D920)
    The Postal Service is proposing to restructure post office box fee 
groups and to establish fees in each of the new groups. Compared to 
equivalent current post office box fees, the proposed fees represent 
both increases and decreases. It is proposed to charge a nonrefundable 
$4.00 fee for each key, over two, requested by a customer. In addition, 
the Postal Service is proposing a $10.00 lock replacement fee.
    In an attempt to better align fees with the actual cost of 
providing post office box service, the Postal Service is proposing to 
change the classification structure for post office boxes. The current 
classification (and therefore fees) of post office boxes are based 
primarily on the type of carrier delivery at a particular postal 
facility.
    The Postal Service has undertaken a major project to align post 
office box fees with actual costs by 5-digit ZIP Codes. In other words, 
post office boxes that have similar costs would be grouped together and 
have the same fee. These ``actual costs'' include estimated rental 
value of the space used to provide post office boxes.
    For this proposal, each 5-digit ZIP Code was assigned to one of six 
cost-based groups based on the estimated cost per square foot of the 
postal facilities within that ZIP Code. All facilities with post office 
boxes in the same 5-digit ZIP Code are in the same cost group and will 
charge the same fees for post office boxes. Therefore, facilities 
(stations and branches) within the same geographic area that are in 
different ZIP Codes may charge different fees for the same size post 
office box. Movement of ZIP Codes from old fee groups to new groups has 
been constrained to mitigate ``fee shock'' for customers whose post 
office box fees would have changed significantly.
    There are no proposed changes to free (Group E) box service. 
Therefore, customers qualifying for free box service would continue to 
receive free service.
    The Postal Service is developing a new data system to track post 
office box costs by 5-digit ZIP Code. At this time, the Postal Service 
is still adding data to this system and checking existing data for 
accuracy. A draft list of 5-digit ZIP Codes and fee group assignments 
will be made available to the public at a future date; the fee group 
assignments are not open for comment as part of this proposed rule. If 
this proposal is adopted, a final list will be published before 
implementation of new post office box fees.

[[Page 52492]]

    The Postal Service believes that this post office box 
reclassification will result in fairer, more equitable post office box 
fees for all customers because the fees will more accurately reflect 
the true costs of providing that service.
    Current post office box customers would not pay the proposed fees 
until their current box rental period ends. See DMM R900.19.0.
    Under the same reclassification effort, the caller service fee is 
proposed to increase to $375 for all customers at all postal 
facilities. Caller service fees would no longer be broken out according 
to post office fee groups. The annual call number reservation fee is 
proposed to decrease from $36 per semi-annual period to $30 per semi-
annual period. See R900.5.0.
    t. Registered Mail (DMM S911)
    All registered mail fees are proposed to increase. The incremental 
fee for registered mail per value level is proposed to increase from 
$0.55 to $0.75. The handling charge per $1,000 in value, or fraction 
thereof, for items valued over $25,000 also is proposed to increase 
from $0.55 to $0.75. There are no classification changes proposed for 
this service. See DMM R900.20.0.
u. Restricted Delivery (DMM S916)
    The restricted delivery fee is proposed to increase from $2.75 to 
$3.20. There are no classification changes proposed for this service. 
See DMM R900.21.0.
v. Return Receipt (DMM S915)
    The regular return receipt fee is proposed to increase from $1.25 
to $1.50. The return receipt for merchandise fee is proposed to 
increase from $1.40 to $2.35. The fee for a return receipt after 
mailing is proposed to decrease from $7.00 to $3.50. These changes 
reflect improved cost estimates and the impact of electronic signature 
capture. See DMM R900.22.0.
    The Postal Service is proposing two classification changes. The 
first change would allow return receipt for merchandise to be combined 
with unnumbered insurance. The second change would extend return 
receipt for merchandise service to Standard Mail (Regular and Nonprofit 
subclasses); this service would be limited to Standard Mail parcels 
that are subject to the residual shape surcharge. Enhanced Carrier 
Route and Nonprofit Enhanced Carrier Route subclasses would not be 
eligible for return receipt for merchandise.
w. Shipper Paid Forwarding (DMM F010)
    The Postal Service is proposing to establish an annual accounting 
fee of $375 for shipper paid forwarding for customers who choose to pay 
forwarding charges through a postage due account. This fee is 
consistent with accounting fees charged for other special services. See 
DMM R900.24.0.
x. Signature Confirmation (DMM S919)
    The Postal Service proposes to establish a new classification and 
fee schedule for Signature Confirmation. Signature Confirmation will 
capture and provide access to all Delivery Confirmation data and an 
image of recipient signatures. Signature Confirmation will be available 
only at the time of mailing for Priority Mail and all subclasses of 
Package Services. For Priority Mail Signature Confirmation, the 
proposed fees are $1.25 for electronic option and $1.75 for retail 
option. For Package Services Signature Confirmation, the proposed fees 
are $1.25 for electronic option and $1.75 for retail option. See DMM 
R900.25.0.
    Before the implementation of R2000-1, it is possible that an 
equivalent service will be implemented as electronic return receipt 
service with Delivery Confirmation, based on the PRC's recommendation 
on Docket No. R97-1.
y. Special Handling (DMM S930)
    There are no proposed fee or classification changes for this 
service. See DMM R900.26.0.
z. ZIP Code Sortation of Mailing Lists (DMM A910)
    Fees for sorting mailing lists by 5-digit ZIP Code for post offices 
with multiple ZIP Codes are proposed to increase from $70.00 to $73.00 
per 1,000 addresses. There are no classification changes proposed for 
this service. See DMM R900.12.0.

12. On-Site Meter Service (DMM P030)

    It is proposed to change the name of the service from ``on-site 
meter settings'' to ``on-site meter service.'' It is proposed to 
replace the ``single meter'' and ``unscheduled appointment'' categories 
with a new ``meter service'' category. It is proposed to replace the 
``additional meters'' category with a ``meter reset and/or examined'' 
category. These categories are proposed in order to consolidate similar 
fees and make the service simpler.
    New fees have been proposed for these realigned categories. The 
proposed fee for meter service is $31.00. The proposed fee for getting 
a meter reset and/or examined is $4.00 per meter. The proposed fee for 
checking a meter in or out of service is proposed to decrease from 
$8.00 to $4.00 per meter. See DMM R900.14.0.
    The Postal Service proposes that these fees for checking a meter in 
and out would not apply to ``secured postage'' meters. To qualify as a 
``secured postage'' meter, a meter must: (1) Include a USPS-approved 
postal security device; (2) print information-based indicia; and (3) be 
remotely set. Because of the enhanced security that these meters 
provide, they do not require labor intensive activities during 
installation or withdrawal. Therefore, these meters do not have 
significant check-in/out costs.

13. Stamps and Stationery (DMM P021)

a. Stamped Cards
    The fee for a single stamped card is proposed to increase from 
$0.01 to $0.02. The fee for double stamped cards is proposed to 
increase from $0.02 to $0.04, and the fee for a sheet of 40 stamped 
cards is proposed to increase from $0.40 to $0.80. These fees are in 
addition to the postage that is pre-printed on the cards and covers the 
cost of printing and manufacturing stamped cards. See DMM R000.3.0.
b. Stamped Envelopes
    The fees for all categories of stamped envelopes are proposed to 
increase. This fee is paid in addition to the postage pre-printed on 
the envelopes. The following classification changes are proposed for 
stamped envelopes:
    (1) Merge the printed household 6 \3/4\ inch and 10 inch categories 
into a single category called printed household (basic).
    (2) Eliminate the banded categories for 6 \3/4\ inch and 10 inch 
envelopes.
    (3) Expand the hologram category to include all envelopes that have 
a patched-in stamp and rename that category ``special'' stamped 
envelopes.
    See DMM R000.1.0 and R000.2.0.

B. Summary of Changes to the Domestic Mail Manual

    The following are proposed changes organized by DMM module. They 
are intended as an overview only and should not be viewed by commenters 
as defining every proposed revision.

Global Name Changes

    Throughout the DMM sections included in this document, the 
following name changes have been made:
    1. ``Special Standard Mail'' has been changed to ``Media Mail.''
    2. ``Standard Mail (A)'' has been changed to ``Standard Mail.''
    3. ``Standard Mail (B)'' has been changed to ``Package Services.'' 
Package

[[Page 52493]]

Services includes all of the Standard Mail (B) subclasses: Parcel Post 
(including Parcel Select), Bound Printed Matter, Media Mail, and 
Library Mail.
    In addition, the current DMM 600 series, which contains combined 
rules for Standard Mail (A) and Standard Mail (B), has been split into 
a 600 series for Standard Mail and a 700 series for Package Services. 
Within these new series, individual units and sections have been split 
up and reorganized for clarity. Current DMM P700, which contains 
standards for special postage payment systems, is renumbered as P900. 
Throughout the language in the DMM, references to ``Standard Mail'' 
have been retained as ``Standard Mail'' or changed to ``Package 
Services'' or ``Standard Mail and Package Services,'' as appropriate.

A  Addressing

    A010 is amended to change DMM references to reflect new DMM module 
numbering. A060 1.4 is amended to incorporate new requirements for 
preparation of Bound Printed Matter mailings with DALs because of the 
elimination of local zone rates. Also, it is clarified that mailings 
made with DALs may not contain any special services or an ancillary 
service endorsement. A new A060.1.7 is added to exclude DALs on special 
services mail.

C  Characteristics and Content

    C010 and C020 are revised to reflect new DMM module numbering. C050 
is revised to decrease the machinable parcel minimum piece weight from 
8 ounces to 6 ounces, to clarify that packaging requirements for soft 
goods may be found in C010, and to clarify that a destinating BMC 
manager may authorize the entry of parcels as machinable rather than as 
irregular if they are tested for machinability and are delivered within 
the service area of the authorizing facility. C200.5.0 is added to 
specify size and weight limitations for Periodicals. C600 is revised to 
delete sections 1.3 and 2.0, which pertain to Package Services and have 
been moved to new C700. C700 is added to include characteristics and 
content standards for Package Services (former C600.1.3 and 2.0 are 
included in this new section). C700.2.0 is amended to provide for the 
addition of new nonmachinable surcharges for intra-BMC and Parcel 
Select DBMC parcels. C810.2.3 is added to include instructions for 
determining the length and height for automation letters. C810.2.4 
(former C810.2.3) is amended to provide for the new maximum weight of 
3.5 ounces for heavy letters. C850 is amended to add Standard Mail 
machinable parcels as items eligible for barcoded discounts.

D  Deposit, Collection, and Delivery

    D600 is revised to remove information pertaining to Package 
Services, to add information about deposit of mail under plant-verified 
drop shipment procedures, and to clarify language. D700 is added to 
include deposit information for Package Services (formerly contained in 
D600).
    D910.1.5 is amended to clarify that post office box customers must 
pay the correct fee for the box service they receive. D910.1.7 is added 
to clarify that post office box service is provided in 6-month 
increments. D910.1.8 (formerly D910.1.7) is amended to add information 
about the new key duplication fee and the new lock resetting fee. 
D910.3.1 is amended for clarity. D910.3.7 is amended to clarify that a 
post office box may not be used when the primary purpose is to have the 
Postal Service redirect or transfer mail to another address. D910.4.1 
is amended to change the basis of post office box fees. D910.4.3 is 
deleted to remove references to fee groups; subsequent sections are 
renumbered. Renumbered D910.4.3 is amended to specify the conditions 
under which post office box fees can change. D910.4.4 is amended to 
clarify when post office box fees must be paid. D910.4.7 is amended to 
show that the exception for payment periods is applicable to all 
offices with fewer than 500 post office boxes, regardless of fee group. 
D910.5.1 is amended to explain the new system for grouping ZIP Codes 
into fee groups. D910.5.2 and 5.3 are amended to clarify the conditions 
under which a customer could qualify for fee (Group E) post office box 
service. Exhibits D910.5.3a and 5.3b are deleted because of the change 
to a new fee system. D910.6.1 is amended to clarify how refunds for 
post office box fees are calculated. D910.7.0 is revised to include the 
new fee for replacement or duplicate keys and the new fee for replacing 
post office box locks.
    D920.1.4 is amended to move information about reserved caller 
numbers into new D920.1.5. D920.3.4 amended to clarify that caller 
service may not be used when the primary purpose is to have the Postal 
Service redirect or transfer mail to another address. D920.4.0 is 
amended and Exhibit 4.1 is deleted to remove references to caller 
service fee groups. D920.4.2 is amended to clarify that reserved number 
fees are not refundable. D920.4.3 is amended to remove references to 
deleted sections. D920.4.5 is amended to clarify the payment periods 
for caller service. D920.4.8 is amended to show that the exception for 
payment periods is applicable to all offices with fewer than 500 post 
office boxes. D920.5.1 is amended to clarify how refunds for caller 
service fees are calculated. D920.5.3 is added to show that the reserve 
number fee is not refundable.

E  Eligibility

    Throughout the E module, references to ``Regular'' are changed to 
``Outside-County,'' as appropriate.
    E010.1.4 is amended to change references from ``C600'' to ``C700.'' 
E010.1.6 is amended to add clarity to the first sentence. The first 
sentence of E020.1.4 is added to clarify that Express Mail cannot be 
sent through the Department of State. E020.2.3 is amended to show that 
Signature Confirmation is not available for mail sent through the 
Department of State. E040.4.1 is amended to change references from 
``C600'' to ``C700.'' E060 5.3 is amended to reflect the current 
requirement for a ``Parcel Post'' rate marking for single-piece rate 
Parcel Post. E060.10.1 is amended to clarify standards for penalty 
reply mail. E060.11.1 is amended to add QBRM as an option for penalty 
business reply mail and to clarify when the annual accounting fee is 
paid. E060.12.1 is amended by adding a reference to S923. A new 
E060.12.2 is added to clarify how penalty merchandise return service 
(MRS) parcels are charged postage and fees. A new E060.12.3 is added to 
require MRS permit holders to pay an annual accounting fee. E060.12.7c 
is added to indicate where the recommended rate marking should appear 
on the MRS label. E060.12.8 is amended to clarify standards for permit 
holders who choose to add insurance to MRS parcels. E060.12.9 is 
renumbered as E060.12.10 and new E060.12.9 is added to allow senders to 
add insurance to MRS parcels at their own discretion and expense. 
E070.4.2 is amended to change the reference from ``E600'' to ``E700.'' 
E070.6.2 is revised to specify Presorted rate mail must be prepared 
under Bound printed Matter standards. E120.2.4 is revised to add 
provisions for a new minimum Priority Mail rate for pieces weighing 1 
pound or less, and to add information on rates applicable to keys and 
identification devices. E130.2.2 is revised to clarify the fee for keys 
and identification devices. E130.2.3 is relocated to M110.1.0. E140.2.2 
and E140.2.3 is revised to add separate 5-digit (optional) and 3-digit 
(required) rate eligibility requirements for automation flats. E150.2.0 
is amended by removing the last sentence. E150.3.2 is amended by adding 
a

[[Page 52494]]

quarterly QBRM fee under E150.3.2d. E211.13.1 is amended by revising 
13.1d(3). E211.13.2 is amended for clarity, no fee is charged if 
reentry is only to change eligibility to preferred rates or the 
preferred rate discount. E211.14.0 has been revised and renumbered as 
E220.1.0. E212.2.4 has been revised and renumbered as E220.4.0. 
E215.2.3 is amended by adding references to Preferred rate discount and 
clarifying qualification categories. New E215.2.4 is added for 
Publications of Institutions and Societies. E215.2.7 is amended by 
replacing the second sentence and deleting the third sentence. A new 
E220 is created that describes and clarifies basic rate eligibility 
standards for Periodicals including the new preferred rate discount for 
Nonprofit and Classroom publications which provides a 5% discount on 
total Outside-County postage, excluding the postage for advertising 
pounds. E270 is amended by removing 1.0 and 6.0 and renumbering 2.0 
through 9.0 as 1.0 through 7.0 and replacing the word in 1.0 ``RATES'' 
with the word ``ELIGIBILITY.'' Removing the word ``rates'' and 
replacing the reference 3.0 and 4.0 as 2.0 and 3.0 amends renumbered 
E270.1.1. Removing the word ``regular'' amends renumbered E270.1.3. 
E270.1.4 is removed. Removing the word ``RATES'' with the word 
``ELIGIBILITY'' amends renumbered E270.2.0. E270.2.1 and E270.2.2 are 
amended by replacing the reference ``3.3 through 3.10'' with ``2.3 
through 2.10.'' Removing the word ``RATES'' with the word 
``ELIGIBILITY'' amends renumbered E270.3.0. Removing the word 
``regular'' in the last sentence amends renumbered E270.4.0. E270.5.1 
is amended by adding a new first sentence requiring the Preferred rate 
discount is available only after USPS authorization. E270.5.5, Rate 
Anomaly, renumbered as E270.4.5 is removed. In renumbered E270.5.0, 5.1 
is removed and E270 5.2 and 5.3 are renumbered as 5.1 and 5.2. 
Renumbered E270.5.1 is amended by adding a new first sentence 
describing the Preferred rate discount and revising the second sentence 
applicable to authorization procedures for Nonprofit and Classroom 
publications. Adding reference to preferred rate and replacing 
``Regular Periodicals'' with ``Outside-County'' amends renumbered 
E270.6.1 and E270.6.2. Renumbered E270.7.4 is amended by replacing 
``Regular'' with ``Outside-County,'' and the reference ``9.5'' with 
``7.5.'' E611 is amended to provide basic eligibility requirements for 
only Standard Mail and is renumbered as E610. E610.1.0 is amended to 
show that Standard Mail no longer includes matter previously referred 
to as Standard Mail (B) or fourth-class mail, and add the weight limit 
from former E612.1.0. E610.4.6 is removed because this section is no 
longer needed since all Package Services mail may now weigh less than 
16 ounces. E610.5.0 is amended for clarity and incorporates new maximum 
limits for minimum per-piece rates. E610.5.4 is added for machinable 
parcels prepared with barcodes to be eligible for a barcoded discount. 
E610.5.5 is added for mail that is prepared as a parcel or is not a 
letter-size or flat-size mailpiece defined in C050 is subject to a 
residual shape surcharge. E612.4.9 is renumbered as E612.8.0. E612.8.0 
is amended for clarity and provides use of detached address labels. 
E610.5.6 is amended to provide for the residual shape surcharge. 
Renumbered E610.5.7 is amended to remove the reference to 4.6 and to 
delete ``bulk'' and to change ``pound rates'' to ``piece/pound rate.'' 
E612 is removed and its information added to new E610. E620 is amended 
to remove information pertaining to Enhanced Carrier Route Mail, and to 
add new 4.0, which contains standards for the barcoded discount. 
Information in current E630 has been moved to new E700. E630 now 
contains eligibility for Standard Mail Enhanced Carrier Route mail. 
E640 is amended to change references replacing ``Standard Mail (A)'' 
with ``Standard Mail'' and amended current ``E611 and E612'' to a 
consolidated and reorganized ``E610.'' E650 has been revised by 
renumbering E651 to E650 and amended current ``E611 and E612'' to a 
reorganized ``E610.'' E670 is amended to add a reference replacing 
``P750,'' which has been moved to ``P950.'' A new E700 is created for 
Package Services as part of the restructuring to establish separate 
modules for Standard Mail and Package Services mail. A new description 
has been added above E710 to match the description in the new E610 
section. Existing E611 and E613 are renumbered to be part of the basic 
standards in E710 and sections of existing E630 are renumbered as new 
E711, E712, E713, E714, and E715. Existing E613.1.0 is renumbered as 
E710.1.2 and amended to reflect that minimum weights for subclasses of 
Package Services mail have been eliminated. E630.1.3 is renumbered as 
E711.2.2 and amended to add the new Intra-BMC and Parcel Select-DBMC 
nonmachinable surcharges, and E711.2.3 is revised to clarify that 
certain parcels mailed at a balloon rate may be subject to a 
nonmachinable surcharge. E630.2.0 is renumbered as E712 and revised in 
its entirety. The definition of a full sack is revised in E713 and in 
all other sections by eliminating the 1,000 cubic inch volume 
requirement and retaining only the piece and sack weight criteria. 
E630.5.1 is renumbered as E714 and amended to change the class name 
from Library Mail to Package Services. E652 is renumbered as E750 for 
destination entry Package Services mail. E751.4.4 and 4.5 are revised 
to clarify that an exception to the appointment requirement exists for 
destination entry shipments containing 100 percent Periodicals or 
shipments of perishables. E752 is created for new destination entry 
discounts for Presorted rate and Carrier Route rate mailings of BPM 
encouraging the deposit of mail at a destinating BMC, SCF, or delivery 
unit. An annual destination entry fee for mail entered at destination 
entry rates is proposed. This new section also explains Destination 
Entry Mail Preparation when mailing under plant-verified drop shipment 
(PVDS). E753 has been added to provide for the combining of Package 
Services parcels in 5-digit sacks (E753.2.0) and on 5-digit pallets 
(E753.3.0) for destination entry at the SCF and DDU levels if also 
presented with an approved manifest. Sacks containing at least 10 
combined pieces or a combined weight of 20 pounds and pallets having at 
least 50 combined pieces and a combined weight of 250 pounds of mail, 
or 36 inches of mail, will be allowed. BPM parcels claimed at a Carrier 
Route rate may not be combined with the other Package Services parcels.

F  Forwarding and Related Services

    F010.4.5 is amended to add that Standard Mail with insurance is 
forwarded and returned. F010.4.6 is added to make the standards for 
undeliverable metered mail in this module consistent with standards 
elsewhere in the DMM. F010.5.3g is added and the chart in F010.5.3 is 
amended to prohibit the use of the ``Change Service Requested'' 
endorsement on Standard Mail with special services. F010.5.4c is added 
and the chart F010.5.4 is amended to allow BPM with no ancillary 
service endorsement and no special service to be disposed of by the 
Postal Service. F010.7.4 is amended to specify that combination parcels 
are returned at Parcel Post Inter-BMC/ASF rates.
    F030.2.5 is amended to give mailers participating in Shipper Paid 
Forwarding the option of paying forwarding charges through a postage 
due account. If mailers choose this option, then they must pay the 
annual

[[Page 52495]]

accounting fee. F030.4.2 is amended to include information about 
forwarding and return of Standard Mail.

L  Labeling Lists

    L001 is amended to change the introductory paragraph to show that 
this labeling list may be used with Bound Printed Matter flats. L002 is 
amended to add ``and per-piece'' to the rate description for 
Periodicals SCF rates. L004 is amended to show that it may be used with 
Bound Printed Matter. L601 is amended to show that packages of Bound 
Printed Matter irregular parcels on pallets may use this list and to 
show the instructions for labeling mixed BMC containers that were 
inadvertently omitted from the Federal Register published August 8, 
2000 (65 FR 48385). L602 is amended to remove the term ``bundles,'' and 
to provide for use of this list by Bound Printed Matter machinable 
parcels when DBMC rates are claimed.

M  Mail Preparation and Sortation

    M011.1.3 is amended to add preparation instructions for less-than-
full and overflow flat trays and to revise the preparation instructions 
for 5-digit/scheme carrier routes sort and 5-digit/scheme sort to 
provide for use of these levels of sortation with BPM flats. M012.3.1 
is amended to eliminate the use of ``Library Rate'' marking effective 
January 1, 2002 (after which date only ``Library Mail'' may be used as 
the marking), to change the marking ``Special Standard'' to ``Media 
Mail'' (``Special Standard'' or ``SPEC STD'' may be used only until 
January 1, 2002). M012.3.2 is amended to add the marking ``Parcel 
Select.'' M012.3.3 is amended to eliminate use of the marking 
``Presorted Standard'' instead of ``Presorted'' with Presorted BPM 
effective January 1, 2002 (after which date only ``Presorted'' and 
``Bound Printed Matter'' may be used), and to add use of the 
abbreviation ``BPM'' as an optional marking for ``Bound Printed 
Matter.'' M013.1.1 is updated to include a carrier route package 
optional endorsement line information for Carrier Route BPM. M013.2.5 
is amended for clarity and to change the labeling list used for ADC 
sortation of BPM irregular parcels from L603 to L004, to change the 
labeling list used for mixed ADC sortation from L604 to L004. M020.1.4 
is amended to delete references to bundles. Current M020.1.5 and 1.6 
are renumbered 1.6 and 1.7 and a new M020.1.5 is added to describe new 
physical preparation of BPM packages. M020.2.2 is amended to show that 
First-Class Mail automation flats prepared under the new tray-based 
preparation rules are not prepared in packages and to show that the 
exception in renumbered M020.1.7 also applies to First-Class flats in 
trays. M020.3.0 is amended to show that the requirements for facing 
slips used to label carrier route packages applies to all classes of 
mail. M031.4.7 is amended to specify that the words ``CARRIER ROUTES'' 
must appear on 5-digit pallets of BPM only when the pallet consists 
entirely of irregular parcels eligible for the carrier route rate and 
that the words ``CARRIER ROUTES'' must appear after the ``5D'' pallet 
level description. M031.4.12 is amended to delete the term ``bundle.'' 
M031.5.0 is amended to add new abbreviations for First-Class Mail and 
Package Services mail. Exhibit M032.1.3a is amended to reflect changes 
in the content line and CIN numbers of Package Services sack labels. 
M033.1.2 is amended to clarify that lids on First-Class flat trays must 
be placed on the trays green side up. M033 is amended to provide for 
less-than-full and overflow trays for First-Class Mail automation rate 
mailings prepared under the new tray-based option.
    M041.5.6 is amended to require for flat-size BPM that Presorted 
rate mail be placed on separate 5-digit pallets (5-digit scheme and 5-
digit pallets) than Carrier Route rate mail (5-digit carrier routes or 
5-digit scheme carrier routes pallets), and to remove references to 
palletized bundles. M045.2.0 is revised to clarify requirements and for 
BPM to revise the package minimums, maximums, and physical packaging 
requirements. Current M045.3.0, which provides for optional preparation 
of bundles on pallets for Periodicals and Standard Mail is deleted. 
M045.4 (as set forth in the final rules published in 65 FR 50054 
(August 16, 2000)) is renumbered as M045.3. M045.3 is amended to 
provide for separate pallet preparation requirements for BPM flats in 
M045.3.3 and for irregular parcels in M045.3.4, to renumber the 
remainder of that section, and to revise the class abbreviation on the 
contents lines for Package Services mail from ``STD'' or ``STD B'' to 
``PSVC.'' M045.5 through M045.15 (as set forth in the final rule 
published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.4 
through M045.14. Renumbered M045.6.4 and M045.9.2 will be amended by 
changing the reference ``M630'' to ``M710 or M720.'' Renumbered 10.0 
and 11.0 are amended by changing ``STD'' or ``STD B'' to ``PSVC.'' 
Renumbered 12.1 is amended to change ``M630'' to M710,'' to change the 
pallet label contents lines class abbreviation from ``STD B'' to 
``PSVC,'' and to add ``PARCELS'' after the class abbreviation. 
Renumbered 12.2 is amended to change ``M630'' to ``M710,'' to change 
the pallet label contents lines class abbreviation from ``STD B'' to 
``PSVC,'' and to add ``PARCELS'' after the class abbreviation. 
M045.12.3 is amended to change ``Exhibits E652.7.0 and E652.8.0'' to 
``Exhibits E751.7.0 and E751.8.0.'' M045.12.4 is amended to change 
``E652.6.0'' to ``E751.6.0.'' M045.13.0 is amended to change ``M630'' 
to ``M710'' and to change the class abbreviation on the contents line 
of the pallet label from ``STD B'' to ``PSVC.'' M045.14.0 is amended to 
change the pallet label contents lines class abbreviation from ``STD 
B'' to ``PSVC,'' and to add ``PARCELS'' after the class abbreviation. 
M072.2.4 is amended by changing ``P710, P720, or P730'' to ``P910, 
P920, or P930,'' and by changing ``E652'' to ``E751.'' M073.2.3 is 
amended to change ``P710'' to ``P910.''
    M110 is added to show the preparation requirements for single-piece 
First-Class Mail formerly located in E130.2.3. M610.6.0, which provided 
for preparation of Standard Mail bedloaded bundles, is deleted. 
M620.1.1a is amended by changing ``E620'' to ``E630.'' M630.1 
pertaining to Parcel Post is renumbered in new M710.
    M710.1.1 is added to describe general requirements for Parcel Post. 
Renumbered M710.1.3 (formerly M630.1.2) is revised to show that DSCF 
and DDU rate mail need not be separated by zone and to change ``P710, 
P720, or P730'' to ``P910, P920, or P930.'' M710.1.4 is added to 
contain standard for commingled zones (formerly M630.8.0). M710.1.5 
contains the documentation information formerly in M630.1.3 and is 
amended to clarify the standards and to change ``P710, P720, or P730'' 
to ``P910, P920, or P930.'' M710.2.1 contains standards, formerly in 
M630.1.4, that are amended by changing the reference ``1.5'' to 
``2.2,'' by changing ``Exhibit E652.6.0'' to ``Exhibit E751.6.0,'' and 
by changing the reference ``Exhibit E652.6.0 and Exhibit E652.8.0'' to 
``Exhibit E751.7.0 and Exhibit E751.8.0.'' M710.2.2 (formerly M630.1.5) 
contains standards that are amended to replace ``STD B 5D'' on the 
contents line of DSCF 5-digit sacks with ``PSVC PARCELS 5D.'' M710.4.0 
(formerly M630.6.0) is added to contain provisions for preparation of 
machinable parcels and is amended to show that this preparation is 
optional for Parcel Post. M720 (formerly M630.2.0 and 3.0) is added to 
contain standards for BPM. M721 contains the preparation standards for 
single-piece rate BPM. M722 contains the preparation standards for 
Presorted

[[Page 52496]]

BPM. M722.2.1 contains new packaging requirements for Presorted flats. 
M722.2.2 contains new sacking requirements for Presorted flats. 
M722.3.0 contains new line 2 sack labeling requirements that change the 
abbreviation ``STD'' to ``PSVC.'' M722.3.1 contains new packaging 
requirements for Presorted BPM irregular parcels that weigh 10 pounds 
or less. M722.3.2 contains new sack preparation requirements for 
Presorted BPM irregular parcels weighing 10 pounds or less, including a 
requirement to use L004 instead of L603 for preparation of ADC sacks 
and to use L004 instead of L604 for mixed ADC sacks. M722.3.3 contains 
new line 2 sack labeling requirements for Presorted BPM irregular 
parcels weighing 10 pounds or less that change the abbreviation ``STD 
B'' to ``PSVC.'' M722.3.4 contains a provision to allow preparation of 
bedloaded 5-digit packages of Presorted BPM irregular parcels weighing 
up to 40 pounds when prepared for and entered at DDU rates. M722.4.0 
contains preparation requirements for Presorted BPM irregular parcels 
weighing over 10 pounds. M722.4.1 prohibits packaging of such pieces 
and requires that each individual piece must be enclosed in an 
envelope, full-length sleeve, full-length wrapper, or polywrap before 
being placed in sacks. M722.4.2 contains sacking requirements for 
Presorted BPM irregular parcels weighing over 10 pounds including a 
requirement to use L004 instead of L603 for preparation of ADC sacks 
and to use L004 instead of L604 for mixed ADC sacks. M722.4.3 contains 
new line 2 sack labeling requirements for BPM irregular parcels 
weighing over 10 pounds that change the abbreviation ``STD B'' to 
``PSVC.'' M722.4.4 contains a provision to allow preparation of 
bedloaded 5-digit packages of Presorted BPM irregular parcels weighing 
up to 40 pounds when prepared for and entered at DDU rates. M722.5.0 
contains provisions for preparing Presorted machinable parcels that 
contains the provisions of former M630.6.0 that are amended to clarify 
preparation when DBMC rates are claimed and when they are not and to 
change the line 2 sack labeling class abbreviation from ``STD B'' to 
``PSVC.'' M723 is added that contains the provisions for preparing 
Carrier Route BPM. M723.2.0 contains the preparation requirements for 
Carrier Route BPM flats. M723.2.1 contains new packaging requirements. 
M723.2.2 contains new sacking minimums, requires preparation of carrier 
route sacks, and provides for optional preparation of 5-digit scheme 
carrier routes sacks for Carrier Route BPM flats. M723.2.3 contains 
line 2 sack labels that are amended to change the class abbreviation 
from ``STD B'' to ``PSVC.'' M724.2.4 contains a provision to allow 
preparation of bedloaded carrier route packages of BPM flats weighing 
up to 40 pounds when prepared for and entered at DDU rates. M723.3.0 
contains preparation requirement for Carrier Route BPM weighing 10 
pounds or less. M723.3.1 sets forth new packaging requirements for 
Carrier Route BPM irregular parcels weighing 10 pounds or less. 
M723.3.2 contains sack preparation requirements that change the carrier 
route sack minimum and make it a required level of sack. M723.3.3 
contains line 2 sack labels that are amended to change the class 
abbreviation from ``STD B'' to ``PSVC.'' M723.3.4 contains a provision 
to allow preparation of bedloaded carrier route packages of BPM 
irregular parcels weighing up to 40 pounds when prepared for and 
entered at DDU rates. M723.4.1 requires Carrier Route BPM irregular 
parcels weighing over 10 pounds to be prepared only in direct carrier 
route sacks containing a minimum of 20 pounds of mail. M723.5.1 permits 
machinable parcels to qualify for Carrier Route BPM rates only if 
prepared in a direct carrier route sack that contains a minimum of 10 
addressed pieces or 20 pounds. M730 is added to contain standards for 
Media Mail (formerly in M630.4.0) and is amended to reflect the 
subclass name change to ``Media Mail.'' M730.1.0 contains basic 
standards. M730.2.1 contains sack and package on pallet preparation for 
5-digit Media Mail rates from former M630.4.4 amended to change 
``bundles'' to ``packages'' and to remove ``/1,000 cubic inches.'' 
M730.2.2 (formerly M630.4.5) contains sack preparation for BMC Media 
Mail rates and is amended to remove ``/1,000 cubic inches.'' M730.2.3 
contains Line 2 sack label information for Media Mail (formerly in 
M630.4.6) amended to change ``STD'' and ``STD B'' to ``PSVC.'' M740 is 
added that contains the standards for Library Mail in former M630.5.0. 
M740.1.0 contains basic standards for Library Mail in former M630.5.1 
through 5.3, amended to discontinue use of the ``Library Rate'' marking 
beginning January 1, 2002. M740.2.1 contains sack preparation 
requirements for the 5-digit Library Mail rates from former M630.5.4 
amended to remove ``/1,000 cubic inches.'' M740.2.2 contains sack 
preparation requirements for the BMC Library Mail rates from former 
M630.5.5 amended to remove   ``1,000 cubic inches.'' M740.2.3 contains 
Line 2 sack label information for Library Mail from former M630.5.6 
amended to change ``STD'' and ``STD B'' to ``PSVC.''
    M820.1.2 is amended to incorporate the proposed separate rates for 
5-digit and 3-digit First-Class automation flats. M820.1.5 is amended 
to exclude First-Class automation flats prepared under the new tray-
based preparation rules from package preparation standards. M820.1.11 
is added to prohibit combining FSM 881 and FSM 1,000 mailpieces in the 
same tray when the new tray-based preparation option for First-Class 
Mail automation flats is used. M820.2.1 is amended to make preparation 
of 5-digit packages for First-Class automation flats optional. M820.2.2 
is amended to make preparation of 5-digit trays for First-Class 
automation flats optional. M820.3.0 is added to provide for an optional 
tray-based preparation for First-Class automation flats. M910.1.2 is 
amended to change the reference ``M820'' to the more specific reference 
``M820.2.1'' so that it is clear the mail must be packaged and must not 
be prepared under the new option for First-Class Mail automation flats 
in M820.3.0 for tray-based preparation.

P  Postage and Payment Methods

    P011.1.1b is amended by renumbering 1.1b through 1.1e as 1.1c 
through 1.1f and add new 1.1b to include prepayment conditions for 
merchandise return service. P011.3.3 and 3.4 are added to clarify 
standards for advance deposit accounts and annual accounting fees. A 
separate annual accounting fee must be paid for each special service 
deducted from the same account. P012.2.2 is amended to include in the 
body elements of the standardized documentation tray levels and tray 
destinations when choosing the new tray-based preparation option for 
Automation First-Class flat mailings. P013.1.4 and P013.1.5 is amended 
to reflect the proper affixing of postage to other than single-piece 
rate mailings and affixing postage to single-piece rate mailings. 
P012.2.3 is amended to add a new table to include the proposed rate 
level and abbreviations for Automation First-Class Mail when opting to 
prepare tray-based presorts. P013.2.4 is revised to reflect the new 
proposed one-pound minimum Priority Mail rate. P013.2.6 is amended to 
reflect keys and identification devices weighing more than 13 ounces 
but no more than one-pound would be charged the new one-pound rate. 
Computing and affixing postage on Package Services mail is clarified 
and the minimum postage rate computation for Presorted and Carrier 
route Bound Printed Matter is clarified.

[[Page 52497]]

P014.2.4I is amended to include when the destination entry mailing fee 
is eligible for a full (100%) refund. P022.1.2 is amended by removing 
payment with postage due stamps from the second sentence. P070.5.4 is 
amended by replacing ``Special Standard Mail'' with ``Media Mail'' and 
to include the inter-BMC/ASF rates to the rating of unmarked parcels. 
P600.4.0 and 5.0 are added to clarify eligibility for barcoded 
discounts and payment methods with special services. Current P700, 
Special Postage Payment Systems, is redesignated as P900. Current P710, 
P720, P730, P750, and P760 are redesignated as P910, P920, P930, P950, 
and P960, respectively. A new P700 is created from P600 for Package 
Services with the only change in content being the name change from 
Standard Mail (B) to Package Services.

R  Rates and Fees

    The entire module is revised to reflect new rates and fees for all 
classes of mail.

S  Special Services

    S010.2.1 is amended to show that the sender of a merchandise return 
service parcel may file a claim for loss if the sender has purchased 
the insurance.
    S911.1.5 is amended to add Signature Confirmation as an additional 
service that may be combined with registered mail. S912.1.4 is amended 
to specify the additional services that may be combined with certified 
mail and S912.1.5 is amended to clarify the standards for a delivery 
record. S912.2.5a is amended to specify the form number used by 
customers. S913.1.2 and 1.3 are amended to show that bulk insurance may 
be added to Standard Mail pieces that are subject to the residual shape 
surcharge and to remove the required ``Standard Mail Enclosed'' 
marking. S913.1.5 is amended to add Signature Confirmation as an 
additional service that may be combined with insurance. S913.1.6 is 
added to clarify that customers may request a delivery record after 
mailing. S913.4.0 is amended to change ``parcel'' to ``item.''
    S914.1.1 is amended to show that certificate of mailing is evidence 
that mail has been presented for mailing but does not provide a record 
of delivery. S914.1.2, 1.3, and 1.4 are rewritten for clarity; there 
are no changes to these standards for bulk certificate of mailing. 
S914.1.7 is added to specify the additional services that may be 
combined with certificate of mailing.
    S915.1.1 is amended to show that the return receipt is mailed back 
to the sender. S915.1.2 is amended to show the classes of mail that are 
eligible for return receipt service and the prerequisite services. 
S915.1.7 is added to specify the additional services that may be 
combined with return receipt. S915.2.2 is amended to clarify how to 
apply for a delivery record after mailing. S915.2.3 is added to specify 
the time limit for requesting a delivery record after mailing. S916.1.2 
is amended to clarify that restricted delivery cannot be used with 
Standard Mail. S916.1.7 is added to specify the additional services 
that may be combined with restricted delivery, including new Signature 
Confirmation service. S917.1.1 is amended to show that the return 
receipt is mailed back to the sender. S917.1.2 is amended to show that 
return receipt for merchandise service is available for Standard Mail 
pieces that are subject to the residual shape surcharge. S917.1.3 is 
amended to specify the special services that may be combined with 
return receipt for merchandise. S917.2.7 is added to clarify how 
mailers may request a delivery record if return receipt service was not 
provided. S917.3.0 is amended to remove information about the delivery 
record.
    S918.1.2 is amended to show that electronic option Delivery 
Confirmation is available for Standard Mail pieces that are subject to 
the residual shape surcharge. S918.1.3 is amended to show that Delivery 
Confirmation service is not available for Standard Mail cards, letters, 
and flats (i.e., pieces that are not subject to the residual shape 
surcharge). The last sentence of S918.5.0a is deleted to eliminate 
redundancy.
    New unit S919 is added for Signature Confirmation service.
    S921.1.1 is amended to show the new $1,000 limit for COD and to 
clarify that recipients who pay CODs with cash will be charged the 
applicable money order fee(s). S921.1.4 is amended to specify the 
additional services that may be combined with COD.
    S922.3.4 and 3.5 are added to add a new classification of high-
volume qualified business reply mail (QBRM) that includes a quarterly 
fee and a lower per-piece charge. Renumbered S922.3.6 is revised to 
clarify that the maintenance fee applies only to nonletter-size weight 
averaged BRM.
    S923.1.1, 1.3, and 2.7 are amended to remove references to the per-
piece fee for pieces returned through merchandise return service (MRS). 
S923.1.11 is amended and 1.12 is removed to show that unmarked MRS 
pieces will be treated as Parcel Post. S923.2.3 is amended to clarify 
references to the annual accounting fee. S923.3.0 is amended in its 
entirety to clarify how postage is paid on returned pieces, to remove 
references to the per-piece charge, and to add the annual accounting 
fee for the required advance deposit account. S923.4.1 and 4.2 are 
amended to show that the sender (the person using the merchandise 
return service label to return a parcel to the permit holder) may add 
insurance to a MRS parcel at their own discretion and expense. 
S923.5.6c is amended to clarify that rate markings are optional on MRS 
pieces. All of the exhibits in S923 are amended to remove references to 
the per-piece fee.
    S924.1.1 is amended to add a sentence about payment information for 
Bulk Parcel Return Service (BPRS). S924.1.4 is added to show that no 
special services can be added to pieces sent through BPRS. S924.3.2, 
3.3, and 3.4 are added to clarify the per-piece charges and to describe 
the new annual accounting fee. S924.3.5 is added to specify that the 
permit holder is responsible for payment of all applicable fees. 
Exhibit S924.5.0 is amended to change the class marking to ``Standard 
Mail.'' S930.1.3 is amended to specify that Signature Confirmation 
service can be combined with special handling. S930.1.7 is added to 
clarify that the Parcel Post nonmachinable surcharge is not added to 
parcels sent special handling. S930.2.3 is amended to specify the 
additional services that may be combined with parcel airlift service 
(PAL).
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
the following revisions of the Domestic Mail Manual (DMM), incorporated 
by reference in the Code of Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

PART 111--[AMENDED]

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

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

    2. Revise the following sections of the Domestic Mail Manual (DMM) 
to read as follows:

A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *

[[Page 52498]]

    [Amend 1.2 by replacing ``Standard Mail (A), Standard Mail (B),'' 
with ``Standard Mail, Package Services,'' no other changes to text.]
* * * * *
    [Amend 1.6 by replacing ``Standard Mail'' with ``Standard Mail, and 
Package Services''; and by replacing ``E600'' with ``E600, and E700''; 
no other changes to text.]
* * * * *
4.0  RETURN ADDRESS
* * * * *
    [Amend 4.3g by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
* * * * *

A060  Detached Address Labels (DALs)

1.0  USE
    [Amend 1.2 and 1.3 by changing ``Standard Mail (A)'' to ``Standard 
Mail''; no other changes to text.]
    [Revise 1.4 to reflect the elimination of the local zone and to add 
new 5-digit preparation and entry standards to read as follows:]

1.4  Bound Printed Matter

    Mailings of unaddressed pieces of Bound Printed Matter may be 
mailed with DALs when:
    a. The mail is prepared on 5-digit pallets meeting the standards in 
M040 and M045, except that for flat-size mail, separate 5-digit pallets 
of Carrier Route and Presorted rate mail are not required. The mail may 
not be prepared on pallets when the Drop Ship Product indicates that 
the delivery unit that serves the 5-digit pallet destination cannot 
handle pallets. The destination delivery unit is determined using the 
Drop Ship Product under the provisions for the DDU rate in E752. (For 
such delivery units, mail with DALs must be prepared in sacks.) The 
trays or cartons of DALs must be prepared under 3.0 and placed on the 
same pallet as the pieces and must be stretch-wrapped together as one 
unit.
    b. The mail is prepared in 5-digit sacks and entered at the 
destination delivery unit. The destination delivery unit is determined 
using the Drop Ship Product under the provisions for the DDU rate in 
E752. DALs must be packaged under 3.0 and presented to the destination 
delivery unit with the accompanying items to be distributed with the 
DALs.
* * * * *
    [Add a new 1.7 to read as follows:]

1.7  Special Services

    Items mailed with DALs may not be combined with any special 
services.
* * * * *
3.0  MAIL PREPARATION
* * * * *
    [Remove 3.7 and 3.8.]
* * * * *
4.0  DISPOSITION OF EXCESS OR UNDELIVERABLE MATERIAL
* * * * *
    [Amend 4.2 by adding additional restrictions to undeliverable Bound 
Printed Matter to read as follows:]

4.2  Undeliverable DAL

    A DAL that is undeliverable-as-addressed (UAA) is handled under 
F010. An UAA Standard Mail or Bound Printed Matter DAL is disposed of 
as waste. The accompanying item is treated as specified by the mailer 
under 4.1.
5.0  POSTAGE
* * * * *
    [Amend 5.2b by changing ``Standard Mail (A)'' to ``Standard Mail''; 
no other changes to text.]
    [Amend 5.3 by replacing ``Standard Mail (B)'' with ``Package 
Services mail''; no other changes to text.]

C  CHARACTERISTICS AND CONTENT

C000  General Information

C010  General Mailability Standards

1.0  MINIMUM AND MAXIMUM DIMENSIONS
* * * * *
    [Amend 1.3 by changing ``(see C600)'' to ``(see C700)''.]
* * * * *

C020  Restricted or Nonmailable Articles and Substances

* * * * *

C023  Hazardous Materials

1.0 GENERAL
    [Amend 1.1f by replacing ``Standard Mail'' with ``Standard Mail or 
Package Services''; no other changes to text.]
* * * * *

C050   Mail Processing Categories

1.0  BASIC INFORMATION
    [Amend the second sentence of 1.0 to reflect changes in class names 
to read as follows:]
    * * * Unless permitted by standard, any mailing at other than the 
single-piece Express Mail, Priority Mail, First-Class Mail, or Package 
Services rates may not contain pieces from more than one processing 
category.
* * * * *
    [Amend Exhibit 2.0 to show new weight limit for machinable 
parcels.]
* * * * *
4.0  MACHINABLE PARCEL

4.1  Criteria

    [Amend 4.1a to decrease the minimum piece weight from 8 ounces to 6 
ounces to read as follows:]
    A machinable parcel (see Exhibit 2.0) is any piece that is:
    a. Not less than 6 inches long, 3 inches high, \1/4\ inch thick, 
and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick is 
subject to the 3\1/2\-inch height minimum under C010.)
* * * * *
    [Remove 4.1c.]

4.2  Soft Goods

    [Amend 4.2 to include reference to C010 for packaging standards to 
read as follows:]
    Soft goods wrapped in paper or plastic bags and enveloped printed 
matter weighing up to 5 pounds are machinable only if all applicable 
packaging standards in C010 are met.

4.3  Exception

    [Amend 4.3 to clarify the exception authority for machinable 
parcels to read as follows:]
    Some parcels may be successfully processed on BMC parcel sorters 
although they do not conform to the general machinability criteria in 
4.1. A destinating BMC plant manager may authorize a mailer to enter 
such parcels as machinable parcels rather than as irregular parcels if 
the parcels are tested on BMC parcel sorters and prove to be 
machinable. In addition, the following requirements must be met: all 
mailed pieces must be machinable, properly labeled, bear delivery 
addresses located within the service area of the authorizing BMC, and 
be entered at a post office within the service area of the authorizing 
BMC.
* * * * *

C200  Periodicals

* * * * *
2.0  IMPERMISSIBLE MAILPIECE COMPONENTS
* * * * *

2.2  Prohibited Matter

    [Amend 2.2c to replace ``Standard Mail'' with ``Standard Mail, or 
Package Services''; no other changes to text.]
* * * * *
    [Amend heading and text of 2.4 by replacing ``Standard Mail (B)'' 
with ``Package Services''; no other changes to text.]
* * * * *
    [Add new section 5.0 to read as follows:]

[[Page 52499]]

5.0  PHYSICAL LIMITATIONS
    Periodicals mail may not weigh more than 70 pounds or measure more 
than 108 inches in length and girth combined. Additional size 
limitations apply to individual Periodicals rate categories.
* * * * *

C600  Standard Mail

1.0  DIMENSIONS
    [Revise the heading of 1.1 to read as follows:]

1.1  Basic Standards

    [Amend 1.1 and Exhibit 1.1d by changing ``Standard Mail (A)'' to 
``Standard Mail.'']
* * * * *
    [Redesignate 1.3 as C700.1.0.]
    [Redesignate current 2.0 as C700.2.0.]
    [Add new 2.0 to read as follows:]
2.0  RESIDUAL SHAPE SURCHARGE
    Mail that is prepared as a parcel or is not letter-size or flat-
size as defined in C050 is subject to a residual shape surcharge. There 
is one surcharge for mail entered at Regular and Nonprofit Presorted 
rates and a different surcharge for mail entered at Enhanced Carrier 
Route and Nonprofit Enhanced Carrier Route rates. See E610 and R600.
* * * * *
    [Add new C700 as follows:]

C700  Package Services

    [Redesignate C600.1.3 as C700.1.0 and amend the heading by 
replacing ``Standard Mail (B)'' with ``Package Services''; no other 
changes to text.]
    [Redesignate C600.2.0 as C700.2.0 and amend to extend the 
nonmachinable surcharge to intra-BMC and Parcel Select-DBMC pieces to 
read as follows:]
2.0  NONMACHINABLE SURCHARGE
    Items described in E711 that are mailed at the inter-BMC/ASF, 
intra-BMC, or Parcel Select-DBMC Parcel Post rates are subject to a 
nonmachinable surcharge unless the applicable special handling fee is 
paid. An oversized parcel as described in 1.0c is not subject to the 
surcharge.
    [Add new 3.0 to read as follows:]
3.0  POSTAL INSPECTION
    Package Services mail is not sealed against postal inspection. 
Package Services mail may be prepared for automated processing but must 
allow easy examination.

C800  Automation-Compatible Mail

C810  Letters and Cards

* * * * *
2.0  DIMENSIONS
* * * * *
    [Redesignate 2.3 as 2.4; amend redesignated 2.4 to provide for new 
maximum weight limits and by deleting 2.4d through f; and add new 2.3 
to read as follows:]

2.3  Determining Height and Length

    The length of an automation letter piece is the dimension parallel 
to the address when the address is read. The height is the dimension 
perpendicular to the length.

2.4  Maximum Weight

    Maximum weight limits are as follows:
    a. Upgradable Presorted First-Class Mail and Upgradable Presorted 
Standard Mail: 2.5 ounces (0.1563 pound).
    b. Automation First-Class Mail, automation Periodicals, and 
automation Standard Mail: 3 ounces (0.1875 pound).
    c. Automation First-Class Mail, automation Periodicals, and 
automation Standard Mail heavy letters: 3.5 ounces (0.2188 pound).
* * * * *
7.0  ADDITIONAL STANDARDS FOR SPECIFIC TYPES OF PIECES
* * * * *

7.5  Heavy Letter Mail

    [Amend 7.5 by changing the reference ``2.3'' to ``2.4''; no other 
changes to text.]
* * * * *

C820  Flats

* * * * *
3.0  DIMENSIONS FOR FSM 1000 PROCESSING
* * * * *

3.4  Maximum Weight

    [Amend 3.4 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *

C840  Barcoding Standards for Letters and Flats

* * * * *
2.0  BARCODE LOCATION--LETTER-SIZE PIECE

2.1  Barcode Clear Zone

    [Amend 2.1 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *
    [Amend title of 850 by replacing ``Standard Mail (B)'' with 
``Standard Mail and Package Services'' to read as follows:]

C850  Barcoding Standards for Standard Mail and Package Services 
Machinable Parcels

1.0  GENERAL
    [Amend 1.1 by replacing ``Standard Mail (B)'' with ``Standard Mail 
and Package Services mail,'' and replace ``E630'' with ``E620, E720, 
E730, or E740''; no other changes to text.]
* * * * *
    [Amend 1.4 by replacing ``Standard Mail (B)'' with ``Standard Mail 
and Package Services mail'' and replace ``E630'' with ``E620, E720, 
E730, or E740''; no other changes to text.]
* * * * *

D  DEPOSIT, COLLECTION, AND DELIVERY

D000  Basic Information

D010  Pickup Service

* * * * *
2.0  POSTAGE AND FEES
* * * * *
    [Amend 2.2 by changing ``R600'' to ``R700''.]
* * * * *

D200  Periodicals

D210  Basic Information

* * * * *
2.0  MAIL DEPOSIT
    [Amend 2.0 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
* * * * *

D600  Standard Mail

* * * * *
2.0  MAIL DEPOSIT
    [Amend 2.0 by removing 2.1 and 2.3; redesignating 2.2 and 2.4 as 
2.1 and 2.2, respectively; revising the heading and amending the 
contents of redesignated 2.1 to remove the term ``bulk rates,'' provide 
for mail entered under plant-verified drop shipment procedures, and 
amending the text of redesignated 2.2 for clarity to read as follows:]

2.1  General

    Standard Mail must be presented at the post office where the permit 
or license is held and the presort mailing fee is paid. Mailings must 
be presented at the locations and times specified by the postmaster. 
Plant-verified drop shipment (PVDS) mailings must be presented for 
verification, acceptance, and entry under P750. Plant-loaded

[[Page 52500]]

mailings must be presented, verified, accepted, and entered as 
specified by the plant load agreement and applicable standards. Metered 
Standard Mail may be deposited at other than the licensing post office 
only as permitted under D072. Nonprofit Standard Mail must be presented 
only at post offices where the organization producing the mailing has 
an approved nonprofit authorization (E670).

2.2  Separation of Mailings

    Pieces at different rates (e.g., 3/5 and basic) may be combined in 
the same mailing as provided in M011. Separate mailings may be reported 
on the same postage statement if the pieces in the mailings are in the 
same processing category (C050), are part of the same mailing job, and 
are presented for verification at the same time.
    [Add new D700 to read as follows:]

D700  Package Services

1.0  SERVICE OBJECTIVES
    The USPS does not guarantee the delivery of Package Services mail 
(Parcel Post, Bound Printed Matter, Media Mail, and Library Mail) 
within a specified time. Package Services mail might receive deferred 
service. The local post office can provide more information concerning 
delivery times within its area.
2.0  MAIL DEPOSIT

2.1  Single-Piece Rate Mailings

    Single-piece rate Package Services mail must be deposited at a time 
and place specified by the postmaster or designee at the office of 
mailing. Metered mail may be deposited at other than the licensing post 
office only as permitted under D072. Permit imprint mail must be 
presented at the post office under P040 or P700.

2.2  Presorted, Carrier Route, Destination Entry, and Barcoded 
Discount Mailings

    All presorted, carrier route, destination entry, barcoded discount 
mailings must be presented for verification and acceptance at the post 
office where the permit or license is held and, if applicable, where 
the presort mailing fee or destination entry mailing fee is paid. All 
such mailings must be deposited at locations and times specified by the 
postmaster or designee at the office that verifies and accepts the 
mailing. Plant-verified drop shipment (PVDS) mailings must be presented 
for verification, acceptance, and entry under P750. Plant-loaded 
mailings must be presented as specified by the applicable standards and 
the plant load agreement. Metered mail may be deposited at other than 
the licensing post office only as permitted under D072.

2.3  Zoned Rates

    Pieces paid at zoned rates must be entered at the post office from 
which the applicable zoned rate postage is computed unless an exception 
is permitted under E710.

2.4  Drop Shipment Information

    Essential information for entering drop shipment Package Services 
mailings at specific postal facilities can be found in the Drop Ship 
Product maintained by the National Customer Support Center (NCSC) (see 
G043). There is a charge for the Drop Ship Product (E750).

D900  Other Delivery Services

D910  Post Office Box Service

1.0  BASIC INFORMATION
* * * * *

1.5  Box Availability

    [Amend 1.5 by adding the following sentence at the end of the 
paragraph:]
    * * * Regardless of the box size applied for, customers must pay 
the correct fee for the service they receive.
    [Redesignate current 1.7 as 1.8. Add new 1.7 to read as follows:]

1.7  Service Period

    Post office box service is provided in six-month increments.
    [Amend redesignated 1.8 to add the new key duplication fee and the 
lock resetting fee read as follows:]

1.8  Fees

    Post office box fees for each six-month period are listed in R900. 
Each box customer is charged a refundable deposit for post office box 
keys. Customers also are charged fees for duplicate and replacement 
post office box keys and for changing locks on post office boxes.
* * * * *
3.0  CONDITIONS OF USE
    [Amend 3.1 by clarifying text to read as follows:]

3.1  Receiving Mail

    A box customer may receive through the box any mail that is 
properly addressed to that box number.
* * * * *
    [Amend 3.7 by clarifying to read as follows:]

3.7  Forwarding

    A post office box may not be used when the primary purpose is to 
have the USPS forward or transfer mail to another address free of 
charge.
* * * * *
4.0  BASIS OF FEES AND PAYMENT
    [Amend 4.1 to change the basis of post office box fees to read as 
follows:]

4.1  General

    Post office box fees are based on the size of box provided and the 
fee group to which the box's 5-digit ZIP Code is assigned.
* * * * *
    [Remove 4.3. Redesignate 4.4 through 4.11 as 4.3 through 4.10, 
respectively. Amend redesignated 4.3 to read as follows:]

4.3  Fee Changes

    A change in post office box service fees applicable to a given 5-
digit ZIP Code can arise from a general fee change. In addition, the 
Manager, Special Services, may authorize the reassignment of one or 
more 5-digit ZIP Codes to the next higher or lower fee group if the 
past history of fee group assignments was in error. The Postal Service 
also may regroup 5-digit ZIP Codes. No ZIP Code may be moved more than 
once a calendar year and may be moved only into the next higher or 
lower fee group. Any change in post office box service fees takes 
effect on the date of the action that caused the change unless an 
official announcement specifies another date. The post office box 
service fee charged is that in effect on the date of payment.

4.4  Payment

    [Amend 4.4 to specify when post office box fees must be paid to 
read as follows:]
    All fees for post office box service are for a 6-month period. 
Except under 4.6, 4.7, and 4.10, fees must be paid in advance for each 
6-month period. The fee may be paid for two periods at a time (i.e., up 
to one year in advance), but not more. The fee that must be paid is the 
one that is in effect on the day that the fee is paid. Fees may be paid 
using cash, credit or debit card, or check or money order payable to 
the postmaster. A mailed payment must be received by the postmaster on 
or before the due date.
* * * * *
    [Amend the heading of 4.7 by removing ``for Group D Offices'' to 
read as follows:]

4.7  Exception

    [Amend the first sentence of 4.8 by removing reference to ``Group 
D'' to read as follows:]

[[Page 52501]]

    Postmasters at offices with fewer than 500 post office boxes may 
set April 1 and October 1 as the beginning of payment periods for box 
customers in their offices. * * *
* * * * *
    [Amend 5.0 by revising 5.1 through 5.3 to show the new fee group 
assignments:]
5.0  FEE GROUP ASSIGNMENTS

5.1  Regular Fee Groups

    Post office boxes are assigned to fee groups listed in R900 based 
upon estimates of the market-based cost of the space occupied by post 
office boxes in each 5-digit ZIP Code. Local post offices can provide 
information about fees for a particular ZIP Code.

5.2  Free Box Service (Group E)

    Customers may qualify for a free (Group E) post office box if their 
physical address or business location meets all of the following 
criteria:
    a. The physical address or business location is within the 
geographic delivery ZIP Code boundaries administered by a post office.
    b. The physical address or business location constitutes a 
potential carrier delivery point of service.
    c. The USPS chooses not to provide carrier delivery to the physical 
address or business location.
    d. The customer does not receive carrier delivery via an out-of-
bounds delivery receptacle.

5.3  Additional Standards for Free Box Service

    Only one free (Group E) box may be obtained for each potential 
carrier delivery point of service. Eligibility for Group E boxes does 
not extend to individual tenants, contractors, employees, or other 
individuals receiving or eligible to receive single-point delivery such 
as delivery to a hotel, college, military installation, or transient 
trailer park. A customer must pay the applicable fee for each 
additional box requested beyond the initial box obtained at the Group E 
fee.
    [Remove Exhibits 5.3a and 5.3b.]
6.0  FEE REFUND

6.1  Calculation

    [Amend 6.1 to clarify fee calculations to read as follows:]
    When post office box service is terminated or surrendered by the 
customer, the unused portion of the fee may be refunded as follows:
    a. If service is discontinued any time within the first 3 months of 
the service period, then one-half of the fee is refunded.
    b. If service is discontinued after the beginning of the fourth 
month of the service period, then none of the fee is refunded.
    c. If service is discontinued and the customer has prepaid for the 
next semi-annual service period, then the entire fee for that period is 
refunded.
* * * * *
    [Amend the heading of 7.0 by adding reference to ``Locks'' to read 
as follows:]
7.0  KEYS AND LOCKS

7.1  Key Deposit

    [Amend 7.1 to clarify that customers must pay the refundable key 
deposit for all keys:]
    Two post office box keys are initially issued to each new box 
customer. Box customers must pay a refundable key deposit on each of 
these keys. The refundable key deposit also must be paid on each 
additional key requested under 6.2. When box service is terminated, the 
key deposit is refunded to the customer for each key that is returned 
to the post office where the box was issued.

7.2  Key Fee

    [Revise 7.2 to add a reference to the key fee to read as follows:]
    A box customer may obtain additional or replacement keys by 
submitting Form 1094 and paying the refundable key deposit and the key 
fee in R900. The fee for replacement or duplicate keys is not 
refundable. Worn or broken keys are replaced without charge when 
returned to the post office where the box was provided.
* * * * *
    [Add new 7.4 to explain the lock replacement fee read as follows:]

7.4  Lock Replacement

    The primary box customer (box applicant) may request that the post 
office box lock be changed. To change the lock, the customer must first 
pay the applicable lock fee in R900. Lock fees are charged for 
replacing keyed locks and combination locks and for re-setting 
combination locks. Lock fees are not refundable. Customers may turn in 
post office keys for the old lock and get a refund of the key deposit. 
Two keys are provided with the new lock, with a refundable deposit for 
each key charged under 7.1. Customers may obtain additional keys for 
the new lock under 7.2.
* * * * *

D920  Caller Service

1.0  BASIC INFORMATION
* * * * *

1.4  Caller Number Service

    [Remove the last two sentences of 1.4.]
    [Redesignate current 1.5 through 1.9 as 1.6 through 1.10, 
respectively. Add new 1.5 to read as follows:]

1.5  Reserving a Caller Number

    Customers may reserve a caller number for future use by paying the 
caller number reserve fee in R900. The postmaster determines the 
reserved numbers and may restrict the availability of this service.
* * * * *
3.0  CONDITIONS OF USE
    [Amend 3.4 by clarifying to read as follows:]

3.4  Forwarding

    Caller service may not be used when the primary purpose is to have 
the USPS forward or transfer mail to another address free of charge.
* * * * *
4.0  BASIS OF FEES AND PAYMENT

4.1  Caller Service Fee

    [Amend 4.1 by clarifying text to read as follows:]
    Customers must pay the caller service fee listed in R900. The fee 
must be paid for each caller number or separation used, with the 
following exceptions:
    a. If a caller uses many caller numbers, but receives only a bulk 
delivery of mail not separated to those numbers either because this 
mail is sorted to the customer's unique 5-digit ZIP Code or because 
sortation is made by caller name or other identification, then the 
caller service fee is charged only for each separation actually made. 
The reserved number fee is charged for each of the caller numbers to 
which mail received by the caller is addressed.
    b. When a post office box service applicant is provided a single 
caller service separation because of a shortage in available post 
offices boxes, then the fee charged is the fee for the largest 
installed post office box. In this instance, neither the caller service 
fee nor the reserved number fee is charged.
    [Remove Exhibit 4.1, Caller Service Groups.]

4.2  Reserved Number

    [Amend 4.2 to clarify that reserved number fees are not refundable 
to read as follows:]
    The reserved call number fee in R900 is charged per calendar year 
or any part of such a calendar year for each number reserved by a 
customer. Reserved call number fees are not prorated.

[[Page 52502]]

4.3  Fee Changes

    [Amend 4.3 by removing references to 4.1b and 4.1 to read as 
follows:]
    A change in caller service fees (including reserved number fees) 
can arise from a general fee change. Any change in caller service fees 
takes effect on the date of the action that caused the change unless an 
official announcement specifies another date. If a caller service fee 
is increased, no customer must pay at the new rate until the end of the 
period already paid, and no retroactive adjustment is to be made for a 
payment received before the date of the change.
* * * * *

4.5  Payment

    [Amend 4.5 to clarify the payment periods for caller service to 
read as follows:]
    All fees are for a 6-month period. Fees must be paid in advance for 
each 6-month period. The fee may be paid for two periods at a time 
(i.e., up to one year in advance), but not more. The fee that must be 
paid is the one that is in effect on the day that the fee is paid. Fees 
may be paid using cash, credit or debit card, or check or money order 
payable to the postmaster. A mailed payment must be received by the 
postmaster on or before the due date.
* * * * *
    [Amend the heading of 4.8 by removing ``for Group D Offices'' to 
read as follows:]

4.8  Exception

    [Amend the first sentence of 4.8 by removing reference to Group D 
offices to read as follows:]
    Postmasters at offices with fewer than 500 post office boxes may 
set April 1 and October 1 as the beginning of payment periods for 
caller service customers in their offices. * * *
* * * * *
5.0  FEE REFUND

5.1  Discontinued Number

    [Amend 5.1 to clarify when refunds can be made to read as follows:]
    When caller service is terminated or surrendered by the customer, 
the unused portion of the fee may be refunded as follows:
    a. If service is discontinued any time within the first 3 months of 
the service period, then one-half of the fee is refunded.
    b. If service is discontinued after the beginning of the fourth 
month of the service period, then none of the fee is refunded.
    c. If service is discontinued and the customer has prepaid for the 
next semi-annual service period, then the entire fee for that period is 
refunded.
* * * * *
    [Add new 5.3 to show that the reserved number fee is not refundable 
to read as follows:]

5.3  Reserved Number Fee

    The reserved number fee is not refundable.
* * * * *

E.  Eligibility

E000  Special Eligibility Standards

E010  Overseas Military Mail

1.0  BASIC STANDARDS
* * * * *

1.4  Preparation

    [Amend 1.4 by changing ``C600'' to ``C700'' and by changing 
``Standard Mail (B)'' to ``Package Services'' to read as follows:]
    Items sent by air or surface mail are subject to the size and 
weight standards in C100 or C700 unless limited further by this 
standard. Mail must be addressed under A010. Postage at the applicable 
Priority Mail or Package Services rates is charged for parcels sent by 
air or surface transportation.
* * * * *

1.6  Restriction

    [Amend the first sentence of 1.6 for added clarity and to refer to 
the new class and subclass names ``Package Services'' and ``Media 
Mail,'' respectively, to read as follows:]
    Regardless of the postage payment method, the following types of 
mail weighing 16 ounces or more must be presented at a post office 
retail counter: all single-piece rate Priority Mail and all single-
piece rate Package Services mail (Parcel Post, Bound Printed Matter, 
Media Mail, Library Mail).* * *
* * * * *
3.0  MILITARY ORDINARY MAIL (MOM)
    [Amend 3.0b by changing reference to ``Standard Mail (A), or 
Standard Mail (B)'' to ``Standard Mail, or Package Services mail''; no 
other changes to text.]

E020  Department of State Mail

1.0  AVAILABILITY
* * * * *
    [Add new 1.4 to show that Express Mail is not eligible to be mailed 
through Department of State Mail:]

1.4  Express Mail

    Express Mail may not be sent through the Department of State.
2.0  CONDITIONS FOR AUTHORIZED MAIL
* * * * *

2.3  Special Services

    [Amend 2.3 by removing references to Express Mail, which has been 
moved to new 1.4, and by adding Signature Confirmation:]
    The following special services are not available for mail 
transmitted through the Department of State: certified, COD, Delivery 
Confirmation, insured, registered, return receipt for merchandise, 
Signature Confirmation, and special handling. If one of those services 
is requested on this mail, it is returned to the sender endorsed 
``Service Not Available.''
* * * * *

E040  Free Matter for the Blind and Other Handicapped Persons

* * * * *
4.0  PREPARATION

4.1  Basic Standards

    [Amend 4.1b by changing ``C600'' to ``C700.'']
* * * * *

E060  Official Mail (Penalty)

* * * * *
5.0  SERVICES, CLASSES, RATES, PREPARATION, AND DETENTION
* * * * *

5.3  Basic Preparation

    [Amend 5.3d to require the Parcel Post marking to read as follows:]
    Penalty mail must:
* * * * *
    d. For all methods of payment, be endorsed for class or rate except 
for single-piece rate First-Class Mail not exceeding 13 ounces.
* * * * *
7.0  PENALTY METER
* * * * *
    [Amend 7.7 by changing title and references from ``On-Site 
Setting'' to ``Meter Service'' to read as follows:]

7.7  Meter Service

    An agency wanting on-site meter service must pay the required fee 
in cash or with a check when the meter is set.
* * * * *
10.0  GENERAL STANDARDS FOR PENALTY REPLY MAIL
    [Amend 10.1 by deleting the last phrase in the last sentence to 
read as follows:]

[[Page 52503]]

10.1  Restriction to Approved Formats

    An agency may distribute penalty envelopes, cards, cartons, or 
labels to any person, concern, or organization. To distribute penalty 
reply mail, agencies must use the penalty business reply mail format; 
the penalty metered reply format; penalty mail adhesive stamps or 
penalty mail stamped stationery; or the penalty merchandise return 
service label.
* * * * *
11.0  PENALTY BUSINESS REPLY MAIL (BRM)

11.1  General

    [Amend 11.1 to add QBRM as an option for penalty mailers and to 
clarify payment of the annual accounting fee to read as follows:]
    An agency may participate in business reply mail service (including 
Qualified Business Reply Mail). Standards for business reply mail are 
in S922. Agencies can choose to pay postage and per piece charges for 
low-volume BRM with cash upon delivery or through an advance deposit 
account. If an agency chooses to pay through an advance deposit 
account, they must pay an annual accounting fee, which is billed 
through their OMAS account. The postage, fees, and per piece charges 
are the same as those for private-sector customers (R900).
* * * * *
12.0  PENALTY MERCHANDISE RETURN SERVICE

12.1  Description

    [Amend 12.1 by replacing ``Standard Mail (B)'' with ``Package 
Services mail'' and replacing ``Special Standard Mail'' with ``Media 
Mail'' and adding a reference to S923 to read as follows:]
    Merchandise return service allows an authorized permit holder to 
pay the postage and special service fees on single-piece rate First-
Class Mail, Priority Mail, and Package Services (Parcel Post, Bound 
Printed Matter, and Media Mail) that is returned by the permit holder's 
customers via a special label produced by the permit holder as 
specified by S923.
    [Redesignate current 12.2 through 12.12 as 12.4 through 12.14, 
respectively, add new 12.2 to show rate and fee application, and add 
new 12.3 to show the required accounting fee to read as follows:]

12.2  Postage and Special Service Fees

    The standards for payment of postage and fees are:
    a. The permit holder guarantees payment of the proper postage and 
special service fees on all returned merchandise return service 
articles distributed under the permit holder's permit number. Postage 
is collected for each article from an OMAS postage due account.
    b. Returned parcels are charged single-piece rate postage and 
special service fees based on the class or subclass marking on the 
label. If a piece is unmarked, it is charged Parcel Post rates. If the 
postage for the returned piece is zoned and there is no way to 
determine where it was sent from (i.e., no postmark or return address), 
then postage is calculated at zone 4 (for Priority Mail) and zone 4 
inter-BMC rates (for Parcel Post).
    c. There is no per-piece charge per parcel returned.

12.3  Annual Accounting Fee

    All MRS permit holders are required to pay the annual accounting 
fee in R900. This is assessed automatically through OMAS.
* * * * *

12.7  Label Format

    [Amend redesignated 12.7 by changing exhibit numbers from ``Exhibit 
12.5a'' to ``Exhibit 12.7a'' and ``Exhibit 12.5b'' to ``Exhibit 12.7b'' 
and to add new item c to indicate the location of the optional rate 
marking.]
* * * * *
    c. Permit holders are encouraged, but are not required, to put the 
rate marking in the space to the right and above the ``Merchandise 
Return Label'' legend. The marking must be at least 3/16 inch high and 
be printed or rubber-stamped. Only the permit holder may apply this 
marking.
    [Revise heading and amend content of redesignated 12.8 by 
clarifying to read as follows:]

12.8  Insured Mail Indicated by Permit Holder

    The permit holder may obtain insured mail service with MRS. 
Indemnity under penalty mail merchandise return is limited to $100. 
Items requiring insurance greater than $100 may not be mailed under 
penalty merchandise return service. Only Package Services matter (i.e., 
matter not required to be mailed at First-Class Mail rates under E110) 
may be insured. Insured mail may be combined with Delivery Confirmation 
and special handling, or both. To request insured mail service, the 
permit holder must preprint or rubber-stamp ``Insurance Desired by 
Permit Holder for $______ (value)'' to the left of and above the 
``Merchandise Return Label'' legend and below the ``Total Postage and 
Fees Due'' statement on the merchandise return label. The value part of 
the endorsement, showing the dollar amount of insurance for the 
article, may be handwritten by the permit holder. If insurance is paid 
for by the MRS permit holder, then only the MRS permit holder may file 
a claim (S010).
    [Redesignate 12.9 through 12.14 as 12.10 through 12.15, 
respectively. Add new 12.9 to show that MRS senders may add insurance 
at their discretion to read as follows:]

12.9  Insured Mail Added by Sender

    If the permit holder has not indicated insured mail service on the 
MRS label, then the sender has the option of adding insurance at their 
own cost. There is no limit on the indemnity coverage paid for by the 
sender. If insurance is paid by the sender, then only the sender may 
file a claim (S010).
    [Amend redesignated 12.10, Registered Mail, by changing ``Exhibit 
12.5b'' to ``Exhibit 12.7b''; no other changes to text.]
    [Amend redesignated 12.11, Special Handling, by changing ``Exhibit 
12.5a'' to ``Exhibit 12.7a'' and by replacing ``Standard Mail'' with 
``Package Services''; no other changes to text.]
    [Remove redesignated 12.12 and 12.13. Redesignate 12.14 and 12.15 
as 12.12 and 12.13, respectively.]
* * * * *
15.0  CONTRACTORS
* * * * *

15.2  Preparation

    [Amend 15.2a to add the term ``Package Services'' to read as 
follows:]
    Preparation standards for a contractor's penalty mailings include:
    a. First-Class Mail, Standard Mail, and Package Services penalty 
mailings must be prepared with penalty permit imprints or penalty 
meters. Single-piece rate mailings may also be prepared with penalty 
mail stamps.
* * * * *

E070 Mixed Classes

* * * * *
2.0  ATTACHMENTS OF DIFFERENT CLASSES
    [Amend the heading and contents of 2.1 to change ``Standard Mail 
(A)'' to ``Standard Mail'' and ``Standard Mail'' to ``Standard Mail, or 
Package Services'' to read as follows:]

2.1  First-Class Mail or Standard Mail

    Letters or other pieces of First-Class Mail or Standard Mail may be 
placed in an envelope and attached to the address side of a 
Periodicals, Standard Mail, or

[[Page 52504]]

Package Services piece. Combination envelopes or containers with 
separate parts for the two classes of mail may be used.

2.2  Rate Qualification

    [Amend the introductory sentence of 2.2 by adding ``Package 
Services'' to read as follows:]
    If a Periodicals, Standard Mail, or Package Services host piece 
qualifies for:
    [Amend 2.2a through 2.2d by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend 3.2b by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *
    [Amend 3.3a through 3.3d by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend title of 4.0 by replacing ``Standard Mail'' with ``Standard 
Mail and Package Services'' to read as follows:]
4.0  ENCLOSURE IN STANDARD MAIL AND PACKAGE SERVICES PARCEL
    [Amend 4.1 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
    [Amend 4.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; by replacing ``Standard Mail (B) with ``Package Services 
mail''; and by replacing ``E600'' with ``E700''; no other changes to 
text.]
5.0  INCIDENTAL FIRST-CLASS MAIL ATTACHMENT OR ENCLOSURE
    [Amend 5.0 by replacing ``Standard Mail (A)'' with ``Standard 
Mail'' and by replacing ``Standard Mail (B)'' with ``Package Services 
mail''; no other changes to text.]
    [Amend the heading of 6.0 by replacing ``Special Standard Mail'' 
with ``Media Mail'' to read as follows:]
6.0  COMBINED MAILING OF MEDIA MAIL AND BOUND PRINTED MATTER
    [Amend 6.1 by replacing ``Special Standard Mail'' with ``Media 
Mail''; no other changes to text.]
    [Revise 6.2 to specify Presorted rate mail must be prepared under 
Bound Printed Matter standards to read as follows:]

6.2  Presorted Rates

    Presorted rates may be claimed, subject to the applicable 
preparation standards for Bound Printed Matter (M700).
* * * * *

E100  First-Class Mail

E110  Basic Standards

* * * * *
    [Amend 1.2 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail'' and by replacing ``Special Standard Mail'' with 
``Media Mail''; no other changes to text.]
* * * * *

E120  Priority Mail

* * * * *
2.0  RATES

2.4  Keys and Identification Devices

    [Amend 2.4 by adding reference to the 1-pound rate to read as 
follows:]
    Keys and identification devices (identification cards or uncovered 
identification tags) that weigh more than 13 ounces but not more than 2 
pounds are returned at the applicable 1- or 2-pound Priority Mail rate 
plus the fee as shown in R100 if they bear, contain, or have securely 
attached the name and complete address of a person, organization, or 
concern, with instructions to return the piece to that address and a 
statement guaranteeing payment of postage due on delivery.
* * * * *

E130  Nonautomation Rates

* * * * *
2.0  SINGLE-PIECE RATE
* * * * *

2.2  Keys and Identification Devices

    [Amend the first sentence of 2.2 by replacing ``$0.30'' with a 
reference to R100 to read as follows:]
    Keys and identification devices (identification cards or uncovered 
identification tags) that weigh 13 ounces or less are mailed at the 
applicable single-piece letter rate plus the fee as shown in R100 and, 
if applicable, the nonstandard surcharge.
    [Redesignate current E130.2.3 as M110.1.0. Add new 2.3 to read as 
follows:]   

2.3  Preparation

    Single-piece rate mail must be prepared under M110.
* * * * *

E140  Automation Rates

* * * * *
2.0  RATE APPLICATION
* * * * *
    [Revise heading of 2.2 to read as follows:]

2.2  Flats-Package-Based Preparation

    [Amend 2.2 by revising the introductory text, 2.2a, and 2.2b to 
read as follows:]
    First-Class Mail automation rates apply to each piece that is 
sorted under M820.2.0 or under M910.2.0 into the corresponding 
qualifying groups:
    a. Pieces in 5-digit packages of 10 or more pieces qualify for the 
5-digit automation rate. (Preparation to qualify for that rate is 
optional and need not be done for all 5-digit destinations.)
    b. Pieces in 3-digit packages of 10 or more pieces qualify for the 
3-digit automation rate.
    c. Pieces in ADC or mixed ADC packages qualify for the basic 
automation rate.
    [Add new 2.3 to read as follows:]

2.3  Flats--Optional Tray-Based Preparation

    First-Class Mail automation rates apply to each piece that is 
sorted under M820.3.0 into the corresponding qualifying groups:
    a. Groups of 90 or more pieces in 5-digit trays qualify for the 5-
digit automation rate.
    b. Groups of 90 or more pieces in 3-digit trays qualify for the 3-
digit automation rates.
    c. Groups of fewer than 90 pieces in origin 3-digit trays qualify 
for the basic automation rate.
    d. Groups of 90 or more pieces in ADC trays and all pieces in mixed 
ADC trays qualify for the basic automation rate.
* * * * *

E150  Qualified Business Reply Mail

* * * * *
2.0  AUTHORIZATION
    [Amend 2.0 by removing the last sentence.]
3.0  RATES AND FEES
* * * * *

3.2  Fees

    [Revise 3.2 to add the QBRM quarterly fee to read as follows:]
    Mailers participating in QBRM must pay an annual permit fee, an 
annual accounting fee, a per piece charge for each returned piece and, 
at the mailer's option, a quarterly fee. See R900.4.0.

E200  Periodicals

E210  Basic Standards

E211  All Periodicals

* * * * *

[[Page 52505]]

6.0  ELIGIBLE FORMATS
    [Amend 6.1 by replacing ``First-Class Mail or Standard Mail'' with 
``First-Class Mail, Standard Mail, or Package Services''; no other 
changes to text.]
* * * * *
9.0  BACK NUMBERS AND REPRINTS
    [Amend 9.0 by replacing ``First-Class Mail or Standard Mail'' with 
``First-Class Mail, Standard Mail, or Package Services''; no other 
changes to text.]
* * * * *
13.0  FEES

13.1  Fee Required

    [Amend 13.1 by revising 13.1d(3) to read as follows:]
    The required fee must accompany an application for:
* * * * *
    d. Reentry (unless excepted in 13.2 or 13.3) to request a:
* * * * *
    (3) Change eligibility from preferred rates or the preferred rate 
discount to regular Outside-County rates.
* * * * *

13.2  No Fee

    [Amend 13.2 for clarity to read as follows:]
    No fee is charged if reentry is only to change eligibility to 
preferred rates or the preferred rate discount.
* * * * *
    [Remove 14.0.]

E212  Qualification Categories

* * * * *
2.0  PUBLICATIONS OF INSTITUTIONS AND SOCIETIES
* * * * *
    [Remove 2.4.]
* * * * *
4.0  REQUESTER PUBLICATIONS
    [Amend 4.1 by replacing ``Regular'' with ``Outside-County''; no 
other changes to text.]
* * * * *
6.0  NEWS AGENT REGISTRY
* * * * *
    [Amend 6.4 by replacing ``Regular'' with ``Outside-County''; no 
other changes to text.]
    [Amend 6.5 by replacing ``Standard Mail'' with ``Standard Mail or 
Package Services''; no other changes to text.]

E213  Periodicals Mailing Privileges

* * * * *
2.0  MAILING WHILE APPLICATION PENDING
    [Amend 2.1 by replacing ``First-Class Mail or Standard Mail'' with 
``First-Class Mail, Standard Mail or Package Services''; no other 
changes to text.]
    [Amend 2.2 by replacing ``Standard Mail'' with ``Standard Mail or 
Package Services''; no other changes to text.]
* * * * *

E214  Reentry

* * * * *
3.0  APPLICATION FOR REENTRY
* * * * *
    [Amend 3.9a and 3.9c by replacing ``Standard Mail'' with ``Standard 
Mail or Package Services''; no other changes to text.]
    [Amend 3.10 by replacing ``Standard Mail'' with ``Standard Mail or 
Package Services''; no other changes to text.]
* * * * *

E215  Copies Not Paid or Requested by Addressee

* * * * *
2.0  NONSUBSCRIBER AND NONREQUESTER COPIES
    [Amend 2.1 and 2.2 by replacing ``Regular'' with ``Outside-
County''; no other changes to text.]
    [Amend heading of 2.3 by adding ``and the Preferred Rate Discount'' 
to read as follows:]

2.3  Preferred Rates and the Preferred Rate Discount

    [Amend 2.3 by adding references to Preferred rate discount and 
clarifying qualification categories to read as follows:]
    For Nonprofit, Classroom, In-County and Science-of-Agriculture 
publications, nonsubscriber copies, up to 10% of the total number of 
copies mailed to subscribers during the calendar year, may be mailed at 
the applicable Preferred rates or Preferred rate discount, provided the 
nonsubscriber copies would qualify as Preferred rate or Preferred rate 
discount publications if mailed to subscribers and if the copies are 
presorted under applicable standards. Nonsubscriber copies mailed over 
the 10% limit are not eligible for Preferred rates or the Preferred 
rate discount. To qualify for Outside-County rates, the nonsubscriber 
copies over the 10% allowance must be part of a presorted commingled 
mailing (one that includes subscriber copies). Subject to E220.4.0, 
nonsubscriber copies may be mailed at In-County rates up to a 10% limit 
of the total number of subscriber copies of the publication mailed at 
In-County rates during the calendar year. Once the 10% calendar year 
limit is exceeded on the number of nonsubscriber copies that may be 
mailed at Preferred rates or the Preferred rate discount, nonsubscriber 
copies may not then be mailed at In-County rates even if the 10% limit 
separately applied to those rates (under E220.4.0) is not exceeded.
    [Redesignate 2.4 through 2.7 as 2.5 through 2.8, respectively; add 
new section 2.4 to read as follows:]

2.4  Publications of Institutions and Societies

    For publications of institutions and societies that are not 
authorized to contain general advertising under E212.2.3, all 
circulated copies are considered subscriber copies and the total number 
of such copies is the total paid circulation.
    [Amend redesignated 2.5 and 2.6 by replacing ``Regular'' with 
``Outside-County''; no other changes to text.]
    [Amend the heading of redesignated 2.7 by adding ``noncommingled'' 
to read as follows:]

2.7  Excess Noncommingled Mailing

    [Amend redesignated 2.7 by replacing the second sentence and 
deleting the third sentence to read as follows:]
    A mailing is not eligible for Periodicals rates if it consists 
entirely of nonsubscriber or nonrequester copies over the 10% limit of 
the total number of copies mailed to subscribers or requesters during 
the calendar year. These copies are subject to the appropriate Express 
Mail, First-Class Mail, Standard Mail, or Package Services rate.
    [Amend redesignated 2.8 by replacing ``Express Mail, First-Class 
Mail, or Standard Mail'' with ``Express Mail, First-Class Mail, 
Standard Mail, or Package Services''; no other changes to text.]
* * * * *
    [Add new DMM section E220.]

E220  Basic Rate Eligibility

1.0  OUTSIDE-COUNTY RATES

1.1  Basic Eligibility

    Outside-County rates apply to all copies of an authorized 
Periodicals publication mailed by a publisher or news agent that are 
not eligible for In-County rates, except nonrequester and nonsubscriber 
copies under E215 for excess noncommingled mailings, unless the 
publication is authorized under E212.2.0 and is not authorized to 
contain general advertising. Nonrequester and nonsubscriber copies in 
excess of the 10% allowance under

[[Page 52506]]

E215 are subject to Outside-County rates when commingled with requester 
or subscriber copies as appropriate. Publications authorized for 
Science-of-Agriculture rates under 3.0 are subject to separate Delivery 
Unit, SCF, and Outside-County Zones 1 & 2 rates. Nonprofit and 
Classroom publications are subject to the Preferred rate discount under 
2.0. Outside-County rates consist of a per-piece charge, a zoned charge 
for the weight of the advertising portion of the publication, and a 
charge for the weight of the nonadvertising portion. Each piece rate 
requires specific preparation.
2.0  OUTSIDE-COUNTY PREFERRED RATE DISCOUNT
    Periodicals publications qualifying as Nonprofit or Classroom 
Periodicals under E270 receive a 5% discount off the total Outside-
County postage, excluding the postage for advertising pounds. Requester 
publications are not eligible for the Preferred rate discount. 
Nonsubscriber copies claiming the Preferred rate discount are subject 
to the standards in E215.
3.0  OUTSIDE-COUNTY SCIENCE-OF-AGRICULTURE RATES

3.1  Authorization

    To be mailed at the Science-of-Agriculture Periodicals rates, a 
publication must be granted Periodicals entry in other than the 
requester category and granted a Science-of-Agriculture rate 
authorization.

3.2  Eligibility

    Science-of-Agriculture rates apply to Outside-County copies of 
authorized Periodicals publications mailed by publishers or news agents 
when the total copies provided during any 12-month period to 
subscribers residing in rural areas are at least 70% of the total 
number of copies distributed by any means for any purpose.

3.3  Other Rates

    All Outside-County rates and discounts apply except for separate 
rates for Delivery Unit, DSCF, and zones 1 & 2. Each piece must meet 
the standards for rates or discounts claimed. Nonsubscriber copies are 
subject to E215. Subject to E250, the DDU or DSCF piece rate applies to 
each piece claimed in the pound rate portion at the corresponding rate.

3.4  Nonadvertising Discount

    The nonadvertising discount applies to Outside-County piece rate 
postage.

3.5  Application Procedures

    The Science-of-Agriculture rate is available only after USPS 
authorization. An application or written request for Science-of-
Agriculture rates must be filed at the publication's original entry 
post office. Application may be made by submitting a written request 
when applying for Periodicals mailing privileges (on Form 3501), by 
completing the relevant part of an application for Periodicals mailing 
privileges (on Form 3502), or by filing for reentry (on Form 3510) 
after Periodicals mailing privileges are authorized. The applicant must 
submit evidence to show eligibility under the corresponding standards 
in E220.
4.0  IN-COUNTY RATES

4.1  Subscriber Copies

    In-County rates apply to subscriber copies of any issue of a 
Periodicals publication (except a requester publication) when they are 
entered within the county in which the post office of original entry is 
located for delivery to addresses within that county, if one of the 
following is met:
    a. The total paid circulation of such issue is less than 10,000 
copies.
    b. The number of paid copies of such issue distributed within the 
county of publication is more than 50% of the total paid circulation of 
such issue.

4.2  Exceptional Conditions

    The standard in 4.1 also is applied under these exceptional 
conditions:
    a. If an entry office postmaster directs the publisher to deposit 
copies of the publication at a postal facility serving that office, 
those copies are considered as mailed at the entry office for purposes 
of In-County rates.
    b. A copy addressed to a destination within the county of 
publication is eligible for In-County rates when the entry post office 
serving that address is outside the county.
    c. Each Periodicals publication (except a requester publication or 
commingled nonsubscriber copies above the 10% allowance) having 
original entry at an incorporated city situated entirely within a 
county or contiguous to one or more counties in the same state, but 
politically independent of such county or counties, is considered 
within a part of the county with which it is principally contiguous. 
Copies mailed into that county are charged postage at the In-County 
rates. Where more than one county is involved, the publisher selects 
the principal county and notifies the postmaster.

4.3  Nonsubscriber Copies

    During a calendar year, the total number of nonsubscriber copies 
mailed at In-County rates may not exceed 10% of the number of 
subscriber copies mailed at In-County rates. The number of 
nonsubscriber copies mailed at In-County rates must be included in the 
determination of the overall 10% allowance under E215. Effectively, the 
allowance for nonsubscriber copies mailable at the In-County rates is 
the 10% allowed under this standard or the overall 10% limit under 
E215, whichever occurs first.

4.4  Other Rates

    Each piece also must meet the standards for the rates and discounts 
claimed. Subject to E250, the Delivery Unit piece rate applies to each 
piece claimed in the pound rate portion at the Delivery Unit rate.
5.0  DISCOUNTS
    Postage for Periodicals is reduced by all applicable discounts. The 
nonadvertising discount applies to the Outside-County piece rate 
charges and is computed under P013. Presort and automation discounts 
are available under E230 and E240, respectively. Destination entry 
discounts are available under E250 for copies entered at specific USPS 
facilities.
6.0  COPIES MAILED BY PUBLIC
    The applicable single-piece First-Class Mail, Priority Mail, or 
Package Services rate is charged on copies of publications mailed by 
the general public (i.e., other than publishers or registered news 
agents) and on copies returned to publishers or news agents.
* * * * *

E250  Destination Entry

* * * * *
2.0  DDU RATE
* * * * *
    [Amend 2.4 by replacing ``Standard Mail'' with ``Standard Mail or 
Package Services''; no other changes to text.]
* * * * *

E270  Preferred Periodicals

    [Remove 1.0 and 6.0 and redesignate 2.0, 3.0, 4.0, 5.0, 7.0, 8.0, 
and 9.0 as 1.0 through 7.0, respectively.]
    [Amend the heading in redesignated 1.0 by replacing the word 
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]

[[Page 52507]]

1.0  NONPROFIT ELIGIBILITY--BASIC INFORMATION

1.1  Authorization

    [Amend redesignated 1.1 by removing the word ``rates'' and 
replacing the reference ``3.0 or 4.0'' with ``2.0 or 3.0'' to read as 
follows:]
    To be mailed as a Nonprofit Periodical, a publication must be 
granted Periodicals entry in other than the requester category and a 
Nonprofit authorization for which eligibility was established under 2.0 
or 3.0.
* * * * *
    [Amend redesignated 1.3 by removing the word ``regular'' in the 
last sentence.]
    [Remove all of 1.4.]
* * * * *
    [Amend the heading in redesignated 2.0 by replacing the word 
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
2.0  NONPROFIT ELIGIBILITY--QUALIFIED ORGANIZATIONS

2.1  Types of Organizations

    [Replace the reference ``3.3 through 3.10'' with ``2.3 through 
2.10.'']

2.2  Primary Purpose

    [Replace the reference ``3.3 through 3.10'' with ``2.3 through 
2.10.'']
* * * * *
    [Amend the heading in redesignated 3.0 by replacing the word 
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
3.0  NONPROFIT ELIGIBILITY--OTHER QUALIFIED ORGANIZATIONS 3.1

Basic Eligibility

3.1  Basic Eligibility

    [Replace the reference ``4.2'' with ``3.2.'']

3.2  Eligibility Limitation

    [Replace the reference ``4.1c or 4.1d'' with ``3.1c or 3.1d.'']
    [Amend the heading in redesignated 4.0 by replacing the word 
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
4.0  CLASSROOM ELIGIBILITY
* * * * *
    [Amend redesignated 4.4 by removing the word ``regular'' in the 
last sentence.]
    [Remove 4.5.]
* * * * *
5.0  APPLICATION
    [In redesignated 5.0, remove 5.1 and redesignate 5.2 and 5.3 as 5.1 
and 5.2.]

5.1  Procedures

    [Amend redesignated 5.1 by adding a new first sentence and revising 
the second sentence (former first sentence) to read as follows:]
    The Preferred rate discount is available only after USPS 
authorization. An application or written request for authorization as a 
Nonprofit or Classroom publication must be filed at the publication's 
original entry post office. Application may be made by submitting a 
written request when applying for Periodicals mailing privileges (on 
Form 3501), by completing the relevant part of an application for 
Periodicals mailing privileges (on Form 3502), or by filing for reentry 
(on Form 3510) after Periodicals mailing privileges are authorized.* * 
*
* * * * *
6.0  MAILING WHILE APPLICATION PENDING
    [Amend redesignated 6.1 by adding reference to preferred rate and 
replacing ``Regular Periodicals'' with ``Outside-County'' and 
``Standard Mail'' with ``Standard Mail, or Package Services'' to read 
as follows:]

6.1  Mailing Before Approval

    A publisher or news agent may not mail at a Periodicals Preferred 
rate or Preferred rate discount before the RCSC manager approves the 
application for such privilege. Until approval is given, postage must 
be paid at the Outside-County rates (if the publication is authorized), 
or at the applicable First-Class Mail, Standard Mail, or Package 
Services rates (if the publication or news agent is in a pending status 
for Periodicals mailing privileges).
    [Amend redesignated 6.2 by replacing ``Standard Mail'' with 
``Standard Mail or Package Services''; and replacing ``regular'' with 
``Outside-County''; no other changes to text.]
7.0  DECISION ON APPLICATION
* * * * *
    [Amend redesignated 7.4 (formerly 9.4) by replacing ``Standard 
Mail'' with ``Standard Mail or Package Services''; replacing 
``Regular'' with ``Outside-County''; and the reference ``9.5'' with 
``7.5''; no other changes to text.]

7.5  No Refund

    [Amend 7.5c (formerly 9.5c) by removing the word ``Regular''; no 
other changes to text.]
* * * * *

E600  Standard Mail

E610  Basic Standards

    [Matter pertaining only to Standard Mail (formerly Standard Mail 
(A)) in current E611 and E612 has been consolidated and reorganized 
into new E610. Unless otherwise indicated by the amend/revise 
instructions below, there are no changes to the content of these 
sections]
    [Remove the heading ``E611, All Standard Mail.'']
1.0  BASIC INFORMATION
    [Redesignate E611.1.1 as E610.1.1, amend the heading and contents 
to show that Standard Mail no longer includes matter previously 
referred to as Standard Mail (B) or fourth-class mail, and add the 
weight limit from former E612.1.0 to read as follows:]

1.1  Definition and Weight

    Standard Mail consists of mailable matter that is neither mailed or 
required to be mailed as First-Class Mail nor entered as Periodicals 
(unless permitted or required by standard) and that weighs less than 16 
ounces. Standard Mail includes matter formerly classified as Standard 
Mail (A) and third-class mail.
    [Redesignate E611.1.2 as E610.1.2, no other changes to text:]
* * * * *
    [Redesignate E612.2.0 as E610.2.0; amend redesignated 2.1 and 2.2 
by changing ``Standard Mail (A)'' to ``Standard Mail''; no other 
changes to text.]
    [Redesignate E611.1.3 as E610.3.0, amend redesignated 3.0j by 
replacing ``Standard Mail (A)'' with ``Standard Mail''; no other 
changes to text.]
    [Redesignate the heading of E612.3.0 as E610.4.0 to read as 
follows:]
4.0  ENCLOSURES AND ATTACHMENTS
    [Redesignate E611.1.4 as E610.4.1; no other changes in text.]
    [Redesignate E611.1.5 as E610.4.2, replace ``Standard Mail (A)'' 
with ``Standard Mail,'' and ``Standard Mail (B) with ``Package Services 
mail''; no other changes to text.]
    [Redesignate E612.3.1 as E610.4.3 and amend by changing ``Standard 
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.3.2 as E610.4.4 and amend by changing ``Standard 
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.3.3 as E610.4.5 and amend to change ``Standard 
Mail (A)'' to ``Standard Mail''; no other changes to text.
    [Redesignate E612.4.0 as E610.5.0 to read as follows:]

[[Page 52508]]

5.0  RATES
    [Redesignate E612.4.1 through 4.3 as E610.5.1 through 5.3, amend 
for clarity, amend to incorporate new maximum limits for minimum per-
piece rates, and revise references to DMM section numbers, to read as 
follows:]

5.1  General Information

    All Standard Mail rates are presorted rates (including all 
nonprofit rates). These rates apply to mailings meeting the basic 
standards in E610 and the corresponding standards for Presorted, 
Enhanced Carrier Route, or automation, under E620, E630, or E640. 
Destination entry discounted rates are available under E650, and 
barcoded discounts are available for machinable parcels in E620, as 
appropriate for the rate claimed. A residual shape surcharge is also 
charged for pieces that are prepared as a parcel or that are not 
letter-size or flat-size. Nonprofit rates may be used only by 
organizations authorized by the USPS under E670. Not all processing 
categories qualify for every rate. Pieces are subject to either a 
single minimum per-piece rate or a combined piece/pound rate depending 
on the weight of the individual pieces in the mailing under 5.2 or 5.3.

5.2  Minimum Per-Piece Rates

    The minimum per-piece rates (i.e., the minimum postage that must be 
paid for each piece) apply as follows.
    a. Basic Requirement. Except for pieces eligible for and mailed at 
automation letter rates, pieces mailed at Regular, Enhanced Carrier 
Route, Nonprofit, and Nonprofit Enhanced Carrier Route rates are 
subject to minimum per-piece rates when they weigh no more than 3.3 
ounces (.2063 pound). Pieces eligible for and mailed at Regular, 
Enhanced Carrier Route, Nonprofit, and Nonprofit Enhanced Carrier Route 
automation letter rates are subject to minimum per-piece rates when 
they weigh no more than 3.5 ounces (.2188 pound).
    b. Letters and Nonletters. In applying the minimum per-piece rates, 
mail is categorized as either letters or nonletters, based on whether 
the mail meets the letter-size standard in C050, without regard to 
placement of the address on the mailpiece. There are two exceptions to 
this rule: (1) mailers that have pieces that meet both the definition 
of a letter in C050 and the definition of an automation flat in C820, 
may choose to prepare and enter mail at an automation flat (nonletter) 
rate; (2) address placement is used to determine the length when 
applying the size standards and aspect ratio requirements to qualify 
for automation letter rates under C810. For this purpose, the length is 
considered to be the dimension parallel to the address.
    c. Individual Rates. There are separate minimum per-piece rates for 
each subclass (Regular, Enhanced Carrier Route, Nonprofit, and 
Nonprofit Enhanced Carrier Route) and within each subclass for the type 
of mailing and the level of presort within each mailing under E620, 
E630, and E640. Discounted per-piece rates also may be claimed for 
destination entry mailings (destination bulk mail center (DBMC), 
destination sectional center facility (DSCF), and destination delivery 
unit (DDU)) under E650. DDU rates are available only for mail entered 
at Enhanced Carrier Route or Nonprofit Enhanced Carrier Route rates. 
See R600 for individual per-piece rates.

5.3  Piece/Pound Rates

    Except for pieces eligible for and mailed at automation letter 
rates, pieces that exceed 3.3 ounces (.2063 pound) are subject to a 
two-part piece/pound rate that includes a fixed charge per piece and a 
variable pound charge based on weight. There are separate per-piece 
rates for each subclass (Regular, Enhanced Carrier Route, Nonprofit, 
and Nonprofit Enhanced Carrier Route) and within each subclass for the 
type of mailing and the level of presort within each mailing under 
E620, E630, and E640. There are separate per-pound rates for each 
subclass (Regular, Enhanced Carrier Route, Nonprofit, and Nonprofit 
Enhanced Carrier Route) under E620, E630, and E640. Discounted per-
pound rates also may be claimed for destination entry mailings 
(destination bulk mail center (DBMC), destination sectional center 
facility (DSCF), and destination delivery unit (DDU)) under E650.
    [Add new 5.4 and 5.5 to read as follows:]

5.4  Machinable Parcel Barcoded Discount

    Machinable parcels (C050) mailed at Regular or Nonprofit rates that 
are prepared with barcodes under C850 and meet the eligibility 
requirements in E620 may qualify for a barcoded discount. Pieces 
eligible for a barcoded discount are also subject to a residual shape 
surcharge under 5.5. Pieces mailed at Enhanced Carrier Route or 
Nonprofit Enhanced Carrier route rates are not eligible for a barcoded 
discount.

5.5  Residual Shape Surcharge

    Mail that is prepared as a parcel or is not letter-size or flat-
size as defined in C050 is subject to a residual shape surcharge. There 
is one surcharge for mail entered at Regular or Nonprofit rates and a 
different surcharge for mail entered at Enhanced Carrier Route or 
Nonprofit Enhanced Carrier Route rates.
    [Redesignate E612.4.4 as 5.6 and amend to provide for the residual 
shape surcharge to read as follows:]

5.6  Net Postage

    The net postage rate that must be paid is either the applicable 
minimum per-piece rate or the piece/pound rate, as reduced by any 
discounts for which the piece is eligible, and/or as increased by any 
surcharge to which the piece is subject. The net postage rate is 
commonly designated by the name of the primary rate category or 
discount (e.g., Enhanced Carrier Route rate, automation letter rate, 
automation flat rate, Presorted rate).
    [Redesignate E612.4.5 as 5.7 and amend to remove the reference to 
4.6, to delete ``bulk,'' and to change ``pound rates'' to ``piece/pound 
rate,'' to read as follows:]

5.7  Minimum Rate

    Postage is computed at the applicable rates on the entire mailing 
to be mailed at one time. The total postage paid on any mailing may not 
be lower than the amount determined by multiplying the proper minimum 
per-piece rate (less applicable discounts) by the total number of 
pieces. If the total postage computed at piece/pound rates, after any 
adjustment for presort level, is less than the minimum per-piece 
postage charge, then postage must be computed at the minimum per-piece 
rate.
    [Remove E612.4.6. This section is no longer needed because all 
Package Services mail may now weigh less than 16 ounces.]
    [Add new heading 6.0 to read as follows:]
6.0  FEES
    [Redesignate E612.4.7 as E610.6.1 and amend to change ``Standard 
Mail (A)'' to ``Standard Mail''; no other changes in text.]
    [Redesignate E611.1.6 as 6.2; and amend by adding ``(R900)'' at the 
end of the sentence; no other changes in text.]
    [Remove current E611.1.7 and 1.8.]
    [Redesignate E612.4.8 as E610.7.0 and amend to change ``Standard 
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.4.9 as E610.8.0, amend to change ``Standard Mail 
(A)'' to ``Standard Mail,'' amend redesignated 8.0c for clarity, amend 
redesignated 8.0e to provide for use of detached address labels as 
previously provided in E611.1.7, amend redesignated 8.0g to

[[Page 52509]]

incorporate former E611.1.8, redesignate 8.0j as 8.0k, and add new 8.0j 
to read as follows:]
8.0  PREPARATION
    Each Standard Mail mailing is subject to these general standards:
    a. All pieces in a mailing must be of the same processing category, 
except that irregular and machinable parcels may be commingled in 5-
digit sacks or on 5-digit pallets.
    b. Each mailing must contain at least 200 pieces or 50 pounds of 
pieces. See E620 for volume requirement eligibility unique to Presorted 
Standard rate mailings. Other volume standards also can apply, based on 
the rate claimed.
    c. For letter-size and flat-size mail, all pieces in an automation 
mailing must be eligible for an automation rate. Separate automation 
and Presorted rate mailings of flats may be co-sacked under M910. 
Separate automation, Presorted, and Enhanced Carrier Route mailings of 
flats may be co-containerized under M920, M930 or M940.
    d. All pieces in a mailing must be sorted together and marked under 
the standards for the rate claimed.
    e. Each piece must bear the addressee's name and delivery address, 
including the correct ZIP Code or Zip+4 code, unless an alternative 
address format is used subject to A040. Detached address labels may be 
used subject to A060. Pieces in automation rate mailings, upgradable 
nonautomation rate pieces, or pieces prepared with detached address 
labels are subject to additional standards.
    f. Postage must be paid under P600 with precanceled stamps, postage 
meter, or permit imprint.
    g. A postage statement, completed and signed by the mailer, using 
the correct USPS form or an approved facsimile, must be submitted with 
each mailing. In addition mailings must be documented under P012 and 
the standards for the rate claimed.
    h. Each piece must meet the standards for any other rate or 
discount claimed.
    i. Any POSTNET barcode on a mailpiece must be correct for the 
delivery address and must meet the standards in C840 and A950.
    j. Any postal routing code barcode on a machinable parcel must be 
correct for the delivery address and must meet the standards in C850.
    k. Mailings must be deposited at a business mail entry unit of the 
post office where the postage permit or license is held and the annual 
bulk fee paid, unless deposit elsewhere is permitted by standard.
    [Redesignate E612.4.10 as E610.9.0 and revise to permit use of 
certain special services for matter subject to the residual shape 
surcharge and to specify the conditions for such use to read as 
follows:]
9.0  SPECIAL SERVICES

9.1  Eligible Matter

    Standard Mail that is subject to the residual shape surcharge 
(pieces prepared as parcels or that are not letter-size or flat-size as 
defined in C050) may receive the following additional special services 
subject to the standards for the special service and upon payment of 
the appropriate special service fees: bulk insurance (S913), return 
receipt for merchandise (S917), and electronic option Delivery 
Confirmation (S918). No other special services may be used with 
Standard Mail. Standard Mail that is letter-size or flat-size (C050) 
and is prepared as letter-size or flat-size mail is not eligible for 
any special services. Machinable parcels using Bulk Parcel Return 
service are not eligible for any special services. Matter mailed using 
detached address labels under A060 is not eligible for any special 
services.

9.2  Additional Preparation Requirements

    Mailpieces prepared using special services must bear a return 
address under A010 and must bear an ancillary service endorsement 
(F010) that results in return of the mailpiece to the sender if 
undeliverable as addressed (Address Service Requested, Forwarding 
Service Requested, or Return Service Requested).
    [Revise the heading of E620 to read as follows:]

E620  Presorted Rates

    [Revise the heading of 1.0 to read as follows:]
1.0  BASIC STANDARDS
    [Revise the heading of 1.1 to read as follows:]

1.1  General

    [Amend 1.1 by replacing in the first sentence of 1.1 and in 1.1b 
``Standard Mail (A)'' with ``Standard Mail,'' and by replacing in 1.1a 
``E611 and E612'' with ``E610''; no other changes to text.]
* * * * *
    [Amend 1.3 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes in text.]
* * * * *
    [Redesignate 1.5 as 2.0 and amend the heading by removing the word 
``Presorted''; no other changes to text.]
    [Redesignate 1.6 as 3.0; no other changes to text.]
    [Add 4.0 to read as follows:]
4.0  BARCODED DISCOUNT
    The barcoded discount applies to machinable parcels (C050) that are 
subject to the residual shape surcharge in 3.0 when the parcels bear a 
correct, readable barcode under C850 for the ZIP Code shown in the 
delivery address; are prepared as machinable parcels under M045 or 
M610; are, if entered at the DSCF rates, not prepared in ASF, BMC, or 
mixed BMC sacks or pallets; and, if claiming the DBMC rates, are not 
entered at an ASF. An exception is that properly prepared machinable 
pieces of DBMC rate mail entered at the Phoenix, AZ, ASF may claim the 
barcoded discount because that facility uses barcode scanning 
equipment. See P600 for postage payment standards.
    [Redesignate current E630.1.0 through E630.7.0 as E711 through 
E715, as directed later in this document.]
    [Add new E630 to read as follows:]

E630  Enhanced Carrier Route Rates

1.0  BASIC STANDARDS
    [Redesignate E620.2.1 as E630.1.1 and amend 1.1a by changing ``E611 
and E612'' to ``E610''; no other changes in text.]
    [Redesignate E610.2.2 through 2.7 as E630.1.2 through 1.7, 
respectively.]
    [Add new heading 2.0 to read as follows:]
2.0  RATES
    [Redesignate E620.2.8 through E620.2.10 as E630.2.1 through 
E630.2.3, respectively and amend redesignated 2.3 by changing ``2.6 and 
2.7'' to ``1.6 and 1.7''; no other changes to text.]
* * * * *
    [Amend the heading of E640 by removing ``Standard Mail (A)'' to 
read as follows:]

E640  Automation Rates

1.0  REGULAR AND NONPROFIT RATES

1.1  All Pieces

    [Amend the introductory sentence by replacing ``Standard Mail (A)'' 
with ``Standard Mail''; amend 1.1a by replacing ``E611 and E612'' with 
``E610,'' no other changes to text.]
* * * * *
2.0  ENHANCED CARRIER ROUTE RATES

2.1  All Pieces

    [Amend 2.1a by replacing ``E611 and E612'' with ``E610,'' no other 
changes to text.]
* * * * *

[[Page 52510]]

E650  Destination Entry

    [Remove the heading ``E651 Regular, Nonprofit, and Enhanced Carrier 
Route Standard Mail.']
1.0  BASIC STANDARDS
    [Amend 1.1 by replacing ``E611 and E612'' with ``E610''; no other 
changes to text.]
* * * * *
    [Amend 1.4 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
    [Amend 1.5 by replacing ``P750'' with ``P950.'']
* * * * *
2.0  VERIFICATION
* * * * *
    [Amend 2.2 by replacing ``P750'' with ``P950.'']
* * * * *
3.0  DEPOSIT
* * * * *
    [Amend 3.3d by changing ``Standard Mail (A)'' to ``Standard Mail'' 
and by changing ``Standard Mail (B)'' to ``Package Services mail.'']
* * * * *
    [Amend 3.10 by changing ``Standard Mail (A)'' to ``Standard 
Mail.'']
* * * * *
7.0  DDU DISCOUNT
    [Amend 7.1 by changing ``Standard Mail (A)'' to ``Standard Mail.'']
* * * * *
    [Redesignate E652 as E751. Amend E751 as specified later in this 
document.]

E670  Nonprofit Standard Mail

1.0  BASIC STANDARDS
* * * * *
    [Amend 1.2 by replacing ``P750'' with ``P950.'']
    [Amend 1.3 by replacing ``E611 and E612'' with ``E610.'']
* * * * *
3.0  QUALIFIED POLITICAL COMMITTEES AND STATE OR LOCAL VOTING 
REGISTRATION OFFICIALS
* * * * *
    [Amend 3.3 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
* * * * *
5.0  ELIGIBLE AND INELIGIBLE MATTER
* * * * *
    [Amend 5.4d(2) by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
* * * * *
    [Amend 5.6a by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
* * * * *
    [Amend 5.12 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
* * * * *
9.0  MAILING WHILE APPLICATION PENDING
* * * * *
    [Amend 9.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
* * * * *
    [Add new E700 as follows:]

E700  Package Services Mail

    [Matter pertaining to only Package Services (formerly Standard Mail 
(B)) in current E611 and E613 has been consolidated, reorganized, and 
added as new E710. Unless otherwise indicated by the amend/revise 
instructions below, there are no changes to the content of these 
sections. They are reproduced here to assist in understanding the new 
organization.]

E710  Basic Standards

1.0  BASIC INFORMATION
    [Redesignate E611.1.1 as E710.1.1 and amend by replacing ``Standard 
Mail'' with ``Package Services mail'' and including Package Services 
subclasses to read as follows:]

1.1  Definition

    Package Services mail consists of mailable matter that is neither 
mailed or required to be mailed as First-Class Mail nor entered as 
Periodicals (unless permitted or required by standard). Package 
Services mail includes matter formerly classified as Standard Mail (B). 
There are four subclasses of Package Services mail: Parcel Post, Bound 
Printed Matter, Media Mail (formerly Special Standard), and Library 
Mail. Information on specific eligibility requirements to qualify for 
rates under each of the four subclasses is found in E711, E712, E713, 
E714, and E715.
    [Redesignate E613.1.0 as E710.1.2 and amend by eliminating the 
minimum weight of 1 pound and replacing ``Special Standard Mail'' with 
``Media Mail'' to read as follows:]

1.2  Weight

    There is no minimum weight for Package Services. A single piece of 
Parcel Post, Media Mail, and Library Mail can weigh no more than 70 
pounds. A single piece of Bound Printed Matter can weigh no more than 
15 pounds.
    [Redesignate existing E611.1.2 as E710.1.3 and amend by changing 
the class name from ``Standard Mail'' to ``Package Services'' to read 
as follows:]

1.3  Postal Inspection

    Package Services mail is not sealed against postal inspection 
except that electronic documents retained by the Postal Service are 
sealed against postal inspection. Regardless of physical closure, the 
mailing of articles at Package Services rates constitutes consent by 
the mailer to postal inspection of the contents.
    [Redesignate existing E611.1.3 as E710.1.4 and amend by changing 
``Standard Mail (A) to ``Standard Mail'' in 1.4j; no other changes.]
    [Redesignate existing E611.1.4 as E710.1.5 and amend by replacing 
``Standard Mail'' with ``Package Services''; no other changes.]
    [Redesignate existing E611.1.5 as E710.1.6 and remove references to 
``Standard Mail (A)'' and ``Standard Mail'' to read as follows:]

1.6  Incidental First-Class Attachments and Enclosures

    Incidental First-Class matter may be enclosed in or attached to any 
Package Services piece without payment of First-Class postage. An 
incidental First-Class attachment or enclosure must be matter that, if 
mailed separately, would require First-Class postage, is closely 
associated with but secondary to the host piece, and is prepared so as 
not to interfere with postal processing. An incidental First-Class 
attachment or enclosure may be a bill for the product or publication, a 
statement of account for past products or publications, or a personal 
message or greeting included with a product, publication, or parcel. 
Postage at the Package Services rate for the host piece is based on the 
combined weight of the host piece and the incidental First-Class 
attachment or enclosure.
    [Redesignate E613.2.0 as E710.2.0.]
2.0  ZONED RATES
    [Redesignate existing E613.2.1 as E710.2.1 and amend by replacing 
``Standard Mail'' with ``Package Services''; no other changes.]
    [Redesignate existing E613.2.2 as E710.2.2, amend by changing 
``Standard Mail'' to ``Package Services'' in the first sentence, and 
amend 2.2c by inserting ``Parcel Post Intra-BMC'' to read as follows:]

2.2  Redirected Mailings

    A mailer who presents large mailings of zoned Package Services mail 
may be permitted or directed to deposit such mailings at another postal 
facility when processing or logistics make such an

[[Page 52511]]

alternative desirable for the USPS, subject to these conditions:
    a. Zoned postage need not be recomputed if both the original post 
office of mailing and the alternative facility use the same zone chart 
for computing zoned postage, based on the 3-digit prefix of their ZIP 
Codes.
    b. Postage must be recomputed on pieces in mailings redirected to a 
postal facility that uses a different zone chart for computing zoned 
postage.
    c. Postage for pieces claimed at the Parcel Post Intra-BMC local 
zone rates must be recomputed at the applicable zone rate for the 
alternative postal facility. Postage also may be recomputed for other 
pieces that are ineligible for the Parcel Post Intra-BMC local zone 
rates but could become eligible at the postal facility to which the 
mailing is redirected.
    [Redesignate existing E613.2.3 as E710.2.3 and amend by changing 
``Standard Mail'' to ``Package Services''; no other changes.]
    [Redesignate E613.3.0 as E710.3.0 and revise to read as follows:]
3.0  ADDRESSING

3.1  Delivery and Return Address

    All Package Services mail must bear a delivery address. Except for 
single-piece rate Parcel Post, the delivery address on each piece must 
include the correct ZIP Code or ZIP+4 code. Alternative address formats 
or detached address labels may be used, subject to A040 or A060. All 
Package Services mail must bear the sender's return address.
    [Redesignate E611.1.6 as E710.3.2 and amend title by adding 
``Fees'' to read as follows:]

3.2  Address Correction Fees

    The fee for manual or automated address correction service is 
charged per notice issued (R700).
    [Redesignate E611.1.8 as E710.4.0 and amend for clarity to read as 
follows:]
4.0  DOCUMENTATION
    Each mailing must be accompanied by a correct, completed USPS 
postage statement form, or approved facsimile, signed by the mailer. A 
postage statement is not required for a Package Services mailing when 
the correct postage at the single-piece rate is affixed to each piece. 
Additional supporting documentation may be required by the standards 
for the rate claimed or postage payment method used.

E700  Package Services Mail

E710  Basic Standards

    [Add new E711 to read as follows:]

E711  Parcel Post

    [Redesignate E630.1.0 as E711.1.0 and revise to read as follows:]
1.0  DEFINITION
    Parcel Post is Package Services mail that is not mailed as Bound 
Printed Matter, Media Mail, or Library Mail. Any Package Services 
matter may be mailed at Parcel Post rates, subject to the basic 
standards in E710.
    [Add new E711.2.0 to read as follows:]
2.0  BASIC STANDARDS
    [Redesignate E630.1.2 as E711.2.1 and change ``Standard Mail (A)'' 
to ``Standard Mail'' and change reference ``E611'' to ``E710'' to read 
as follows:]

2.1  Enclosures

    Parcel Post may contain any printed matter mailable as Standard 
Mail, in addition to the enclosures and additions listed in E710.
    [Redesignate E630.1.3 as E711.2.2 and amend to add the Intra-BMC 
and Parcel Select-DBMC nonmachinable surcharges to read as follows:]

2.2  Rate Eligibility

    There are five Parcel Post rate categories: Intra-BMC, Inter-BMC, 
destination bulk mail center (DBMC), destination sectional center 
facility (DSCF), and destination delivery unit (DDU). Intra-BMC, Inter-
BMC, and DBMC Parcel Post rates are calculated based on the zone to 
which the parcel is addressed and the weight of the parcel. DSCF and 
DDU rates are calculated based on the weight of the parcel. Generally, 
Intra-BMC rates apply to parcels mailed and delivered within the same 
BMC service area and Inter-BMC rates apply to parcels mailed in one BMC 
service area and delivered in a different BMC service area. Specific 
standards for Inter-BMC and Intra-BMC rates and applicable discounts 
are described below. Generally, to qualify for the Parcel Select-DBMC, 
-DSCF, or -DDU rates, mailers must enter their parcels at the 
destination BMC, SCF, or delivery unit postal facility that will 
process or deliver the parcels. (See E750 for destination entry 
requirements.) Inter-BMC, Intra-BMC, and Parcel Select-DBMC Parcel Post 
is subject to a nonmachinable surcharge if the criteria specified in 
C050.4.1 for machinable parcels are not met. Additional requirements 
for Parcel Post rates and discounts are as follows:
    a. Intra-BMC rates apply to all Parcel Post that originates and 
destinates in the service area of the same BMC or ASF. Intra-BMC rates 
also apply to Parcel Post that originates and destinates in the same 
state for Alaska and Hawaii and in the same territory for Puerto Rico. 
See Exhibit 2.2. Intra-BMC rates for nonmachinable Parcel Post include 
the nonmachinable surcharge that applies to parcels that weigh more 
than 35 pounds or otherwise do not meet the criteria contained in 
C050.4.1.
    b. Inter-BMC rates for machinable parcels apply to all Parcel Post 
mail that weighs 35 pounds or less; is machinable; originates in the 
service area of a BMC/ASF or in Alaska, Hawaii, or Puerto Rico and 
destinates outside that area; and is not eligible for destination entry 
rates.
    c. Inter-BMC rates for nonmachinable Parcel Post include the 
nonmachinable surcharge and apply to all inter-BMC/ASF Parcel Post mail 
that weighs more than 35 pounds or otherwise is nonmachinable as 
defined in C050; originates in the service area of a BMC/ASF or in 
Alaska, Hawaii, or Puerto Rico and destinates outside that area; and is 
not eligible for destination entry rates.
    d. Parcel Post for which OBMC Presort, BMC Presort, and barcoded 
discounts are claimed and Parcel Post that is mailed at a destination 
entry rate (Parcel Select-DBMC, -DSCF, -DDU (E750)) must be part of a 
mailing of 50 or more Parcel Post rate pieces. Eligibility for one of 
those rates or discounts does not require a separate 50 qualifying 
pieces per rate or per discount. Eligibility for more than one of those 
rates or discounts in the same Parcel Post mailing is possible, 
provided there are a total of at least 50 pieces of mail qualifying for 
any or all Parcel Post rates in the mailing and all other preparation 
and eligibility requirements for the rates or discounts are met.
    e. The BMC Presort per piece discount applies to pieces of inter-
BMC Parcel Post sorted to BMC destinations under L601 for machinable 
pieces and sorted to BMC and ASF destinations for nonmachinable pieces 
under L605. To qualify, machinable pieces must be placed in pallet 
boxes on pallets, and nonmachinable pieces must be placed directly on 
pallets under M041 and M045. The mail must be entered at a postal 
facility that is not a BMC and must be part of a mailing containing 50 
or more Parcel Post rate pieces.
    f. The origin bulk mail center (OBMC) Presort per piece discount 
applies to pieces of Inter-BMC Parcel Post sorted to BMC destinations 
under L601 for machinable pieces and sorted to BMC and ASF destinations 
for nonmachinable pieces under L605. To qualify, machinable pieces must 
be placed in pallet boxes on pallets, and nonmachinable pieces must be 
placed

[[Page 52512]]

directly on pallets under M041 and M045. The mail must be entered at a 
BMC listed in L601 and must be part of a mailing containing 50 or more 
Parcel Post rate pieces.
    g. The barcoded discount applies to Parcel Post machinable parcels 
(C050.4.1) that bear a correct, readable barcode under C850 for the ZIP 
Code of the delivery address; are part of a mailing of 50 or more 
Parcel Post rate pieces; are not mailed at the DSCF or DDU rates; and, 
if claiming the DBMC rates, are not entered at an ASF. An exception is 
that properly prepared machinable pieces of DBMC rate mail entered at 
the Phoenix, AZ, ASF may claim the barcoded discount because that 
facility uses barcode scanning equipment.
    h. The oversized rate applies to pieces that measure over 108 
inches but that are not more than 130 inches in combined length and 
girth; they are mailable at the applicable oversized Parcel Post rate.
    i. The balloon rate applies to pieces that measure over 84 inches 
but that are not more than 108 inches in combined length and girth and 
also weigh less than 15 pounds; they are subject to the rate equal to 
that of a 15-pound parcel for the zone to which the parcel is 
addressed.

Exhibit 2.2  BMC/ASF Service Areas

------------------------------------------------------------------------
         Service area                    ZIP code areas served
------------------------------------------------------------------------
BMC
    New Jersey...............  005, 068-079, 085-098, 100-119, 124-127,
                                340
    Springfield..............  010-067, 120-123, 128, 129
    Philadelphia.............  080-084, 137-139, 169-199
    Pittsburgh...............  150-168, 260-266, 439-447
    Washington...............  200-212, 214-239, 244, 254, 267, 268
    Greensboro...............  240-243, 245-249, 270-297, 376
    Cincinnati...............  250-253, 255-259, 400-418, 421, 422, 425-
                                427, 430-433, 437, 438, 448-462, 469-474
    Atlanta..................  298, 300-312, 317-319, 350-352, 354-368,
                                373, 374, 377-379, 399
    Jacksonville.............  299, 313-316, 320-339, 341, 342, 344,
                                346, 347, 349
    Memphis..................  369-372, 375, 380-397, 700, 701, 703-705,
                                707, 708, 713, 714, 716, 717, 719-729
    St. Louis................  420, 423, 424, 475-479, 614-620, 622-631,
                                633-639
    Detroit..................  434-436, 465-468, 480-497
    Chicago..................  463, 464, 530-532, 534, 535, 537-539, 600-
                                611, 613
    Minneapolis/St. Paul.....  498, 499, 540-551, 553-564, 566
    Des Moines...............  500-516, 520-528, 612, 680, 681, 683-689
    Kansas City..............  640, 641, 644-658, 660-662, 664-679, 739
    Denver...................  690-693, 800-816, 820, 822-831
    Dallas...................  706, 710-712, 718, 733, 747, 750-799, 885
    Seattle..................  835, 838, 970-978, 980-986, 988-994
    Los Angeles..............  889-891, 900-908, 910-928, 930-935
    San Francisco............  894, 895, 897, 936-966
ASF
    Buffalo..................  130-136, 140-149
    Fargo....................  565, 567, 580-588
    Sioux Falls..............  570-577
    Billings.................  590-599, 821
    Oklahoma City............  730, 731, 734-738, 740, 741, 743-746,
                                748, 749
    Salt Lake City...........  832-834, 836, 837, 840-847, 893, 898, 979
    Phoenix..................  850, 852, 853, 855-857, 859, 860, 863,
                                864
    Albuquerque..............  865, 870-875, 877-884
Other
    Puerto Rico..............  006-009
    Hawaii...................  967-969
    Alaska...................  995-999
------------------------------------------------------------------------

    [Redesignate existing E630.1.4 as E711.2.3 and amend to reflect 
extension of the nonmachinable surcharge to Intra-BMC and Parcel 
Select-DBMC mailings and the new minimum length and weight 
machinability requirements to read as follows:]

2.3  Nonmachinable Surcharge

    The nonmachinable surcharge applies when items are mailed at the 
Inter-BMC, Intra-BMC, and Parcel Select-DBMC Parcel Post rates and no 
special handling fee is paid. (See C050.4.1 for machinability 
criteria.) The nonmachinable surcharge does not apply to items mailed 
at the oversized rates; however, it may apply to certain parcels 
subject to the balloon rate. The nonmachinable surcharge applies to 
such parcels as the following:
    a. Parcels larger than 34 inches long, 17 inches wide, or 17 inches 
high.
    b. Parcels weighing more than 35 pounds. For books, business forms, 
or other printed matter the maximum weight is 25 pounds.
    c. Parcels less than 6 inches long, 3 inches high, and \1/4\ inch 
thick.
    d. Parcels weighing less than 6 ounces.
    e. Parcels containing more than 24 ounces of liquid in glass 
containers or 1 gallon or more of liquid in metal or plastic 
containers.
    f. Parcels that are insecurely wrapped or metal-banded.
    g. Cans, rolls, or tubes, or wooden or metal boxes.
    h. Shrubs or trees.
    i. Perishables, such as eggs.
    j. High-density parcels weighing more than 15 pounds and exerting 
more than 60 pounds per-square-foot pressure on their smallest side.
    k. Film cases weighing more than 5 pounds or with strap-type 
closures, except any film case the USPS authorizes to be entered as a 
machinable parcel under C050.4.0 and to be identified by the words 
``Machinable in United States Postal Service Equipment'' permanently 
attached as a nontransferable decal in the lower right corner of the 
case.
    [Redesignate E630.1.5 as E711.2.4 and change the reference in the 
last sentence to R700; no other changes to text.]
* * * * *

[[Page 52513]]

    [Redesignate E630.2.0 as E712 and revise in its entirety as 
follows:]

E712  Bound Printed Matter

1.0  BASIC STANDARDS

1.1  Description

    Bound Printed Matter (BPM) is Package Services mail. BPM must:
    a. Meet the basic standards for Package Services mail in E710.
    b. Weigh no more than 15 pounds.
    c. Consist of advertising, promotional, directory, or editorial 
material (or any combination of such material).
    d. Be securely bound by permanent fastenings such as staples, 
spiral binding, glue, or stitching. Loose-leaf binders and similar 
fastenings are not considered permanent.
    e. Consist of sheets of which at least 90% are imprinted by any 
process other than handwriting or typewriting with words, letters, 
characters, figures, or images (or any combination of them).
    f. Not have the nature of personal correspondence.
    g. Not be stationery, such as pads of blank printed forms.

1.2  Enclosures

    In addition to the basic standards in E710, BPM may have the 
following additions and enclosures:
    a. Any printed matter mailable as Standard Mail.
    b. A merchandise sample attached to a bound page or to a 
permissible loose enclosure, if the sample represents only an 
incidental portion of the BPM piece and if the sample is not provided 
exclusively or primarily as a premium or an inducement promoting the 
sale of the BPM piece. The sample may be identified as a ``free gift'' 
when it is clear that the sample is offered to the addressee to market 
the gift product; such marketing may also promote the sale of the BPM.

1.3  Nonidentical-Weight Pieces

    Mailings may contain nonidentical-weight pieces only if the correct 
postage is affixed to each piece or if the RCSC serving the post office 
of mailing has authorized payment of postage by permit imprint under 
P910 or P930.

1.4  POSTNET Barcodes on Flats

    Addresses on BPM flats (C050.3) may include an accurate ZIP+4 or 
delivery point barcode that meets the standards in C840. There are no 
automation discounts for BPM flats. Pieces within a package must be 
either 100 percent barcoded or nonbarcoded.
2.0  RATES
    BPM rates are based on the weight of a single addressed piece or 1 
pound, whichever is higher, and the zone (where applicable) to which 
the piece is addressed. Rate categories are as follows:
    a. Single-Piece Rate. The single-piece rate applies to BPM not 
mailed at the Presorted rate or Carrier Route rate.
    b. Presorted Rate. The Presorted rate applies to BPM prepared in a 
mailing of at least 300 pieces, prepared and presorted as specified in 
M045 and M720.
    c. Carrier Route Rate. The carrier route rate applies to BPM 
prepared in a mailing of at least 300 pieces presorted to carrier 
routes, prepared and presorted as specified in M045 and M723. For flat-
size pieces there must be at least 10 pieces or 10 pounds of pieces for 
an individual carrier route to qualify for the rate. For irregular 
parcels there must be at least 10 pieces or 20 pounds of pieces for an 
individual carrier route to qualify for the rate. Machinable parcels 
are eligible for the carrier route rate only when prepared in direct 
carrier route sacks under M723 that each contain at least 10 pieces or 
20 pounds of pieces. Machinable parcels prepared on pallets under M045 
are not eligible for Carrier Route Bound Printed Matter rates.
    d. Barcoded Discount. The barcoded discount applies to machinable 
BPM parcels (C050.4.1) that bear a correct, readable barcode under C850 
for the ZIP Code of the delivery address. The barcoded discount is 
available for a minimum of 50 pieces mailed at single piece rates. It 
is also available for matter mailed at Presorted rates prepared under 
the machinable parcel preparation standards in M045 and M720. The 
barcoded discount is not available for pieces mailed at any carrier 
route rates, at Presorted DDU, or DSCF rates, or for DBMC rate mailings 
entered at an ASF other than Phoenix, AZ, ASF.
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES

3.1  ZIP Code Accuracy

    All 5-digit ZIP Codes included in addresses on pieces claimed at 
Presorted rates must be verified and corrected within 12 months before 
the mailing date using a USPS-approved method. The mailer must certify 
that this standard has been met when the corresponding mail is 
presented to the USPS. This standard applies to each address 
individually, not a specific list or mailing. An address meeting this 
standard may be used in mailings at any other rates to which the 
standard applies during the 12-month period after its most recent 
update.

3.2  Preparation

    Pieces claiming the Presorted rates must be prepared under the 
applicable standards in M722.
4.0  ADDITIONAL STANDARDS FOR CARRIER ROUTE RATES

4.1 Carrier Route Information

    Except for mailings prepared with a simplified address format under 
A040, carrier route codes must be applied to mailings using CASS-
certified software and the current USPS Carrier Route Information 
System (CRIS) scheme, or another AIS product containing carrier route 
information, subject to A930 and A950. The carrier route information 
must be updated within 90 days before the mailing date.

4.2  Preparation

    Pieces claiming the carrier route rates must be prepared under the 
applicable standards in M723.

4.3  Minimum Per Carrier Route

    To qualify for carrier route rates, there must be at least 10 
addressed pieces or 20 pounds to a single carrier route, rural route, 
highway contract route, post office box section, or general delivery 
unit. When package preparation is required, each package prepared must 
consist of at least two addressed pieces with the exception for the 
last piece to a carrier route destination (M020).
5.0   ADDITIONAL STANDARDS FOR DESTINATION ENTRY RATES
    Eligibility standards for Presorted and Carrier Route Destination 
Delivery Unit (DDU) rates, Destination Sectional Center Facility (DSCF) 
rates, and Destination Bulk Mail Center (DBMC) rates are in E752. DDU 
rates are not available for Presorted flats.
6.0  ADDITIONAL STANDARDS FOR BEDLOADED MAILINGS
    Bedloaded packages are permitted only when prepared for and entered 
at DDU rates. If prepared, bedloaded packages of BPM are required to be 
prepared under the sortation standards for flats or irregular parcels, 
as applicable, and are not eligible for barcoded discounts (2.0).
* * * * *
    [Add new E713 as follows:]

E713 Media Mail

    [Redesignate E630.3.1 as E713.1.0 and change the heading, class, 
subclass names, section order, and references to read as follows:]
1.0  RATE ELIGIBILITY
    Media Mail is Package Services matter that meets the standards in 
E700 and

[[Page 52514]]

those below. Media Mail rates are based on the weight of the piece 
without regard to zone. The rate categories are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Media Mail 
not mailed at a 5-digit or BMC presort rate.
    b. BMC Presort Rate. The BMC rate (Level B) applies to presorted 
Media Mail mailings of at least 500 pieces and meeting the other 
requirements of 4.0 and that are prepared and presorted to destination 
bulk mail centers as specified in M730 or M041 and M045.
    c. 5-Digit Presort Rate. The 5-digit rate (Level A) applies to 
presorted Media Mail mailings of at least 500 pieces that meet the 
other requirements of 4.0 and that are prepared and presorted to 5-
digit destination ZIP Codes as specified in M730 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Media Mail 
machinable parcels (C050.4.0) that are included in a mailing of at 
least 50 pieces of Media Mail. The pieces must be entered either at 
single-piece rates or BMC presort rates and bear a correct, readable 
barcode for the ZIP Code shown in the delivery address as required by 
C850. The discount does not apply to pieces mailed at Media Mail 5-
digit presort rates.
    [Add new E713.2.0 to read as follows:]
2.0  QUALIFICATION
    [Redesignate E630.3.2 as E713.2.1 and change the subclass name to 
Media Mail; no other changes to text.]
    [Redesignate E630.3.3 as E713.2.2, change the class name to 
``Standard Mail'' from ``Standard Mail (A)'' and subclass name to Media 
Mail; no other changes to text.]
    [Redesignate E630.3.4 as E713.2.3 and change the subclass name and 
cross references to read as follows:]

2.3  Enclosures in Books

    Enclosures in books mailed at Media Mail rates are subject to these 
additional standards:
    a. Either one envelope or one addressed postcard may be bound into 
the pages of a book. If also serving as an order form, the envelope or 
card may be in addition to the order form permitted by 2.3b.
    b. One order form may be bound into the pages of a book. If also 
serving as an envelope or postcard, the order form may be in addition 
to the envelope or card permitted by 2.3a.
    c. Announcements of books may appear as book pages. These 
announcements must be incidental and exclusively devoted to books, 
without extraneous advertising of book-related or other materials or 
services. Announcements may fully describe the conditions and methods 
of ordering books and may contain ordering instructions for use with a 
separate order form. Up to three of these announcements may contain as 
part of their format a single order form, which may also serve as a 
postcard. The order forms permitted with these announcements are in 
addition to, and not in place of, order forms that may be enclosed 
under 2.3a or 2.3b.
    [Redesignate E630.4.0 as E713.3.0 and change the subclass name to 
read as follows:]
3.0  PRESORTED MEDIA MAIL
    [Redesignate E630.4.1 as E713.3.1 and change the subclass name and 
change the cross reference to M730 from M630; no other changes to 
text.]
    [Redesignate E630.4.2 as E713.3.2 and change the subclass name; no 
other changes to text.]
    [Redesignate E630.4.3 as E713.3.3 and change the subclass name; no 
other changes to text.]
    [Redesignate E630.4.4 as E713.3.4 and eliminate 1,000 cubic inches 
as a minimum quantity to read as follows:]

3.4  Definitions

    For this standard:
    a. Full sack means a sack containing at least eight pieces or a 
quantity of pieces weighing from 20 to 70 pounds.
    b. Substantially full sack means either at least four pieces or a 
quantity of pieces weighing from 20 to 70 pounds.
    [Redesignate E630.4.5 as E713.3.5, change the subclass name, change 
``bundles'' to ``packages, and remove ``1,000 cubic inches,'''' to read 
as follows:]

3.5  5-Digit Rate

    To qualify for the Media Mail 5-digit presort rate, a piece must be 
in a mailing of at least 500 Media Mail pieces receiving identical 
service and prepared and sorted either under M730 to full 5-digit sacks 
or under M045 to 5-digit pallets. These conditions also apply:
    a. Mailings of at least 500 nonmachinable outside parcels may 
qualify for the Media Mail 5-digit presort rate if prepared to preserve 
sortation by 5-digit ZIP Code as prescribed by the postmaster of the 
mailing office. The postmaster may require a 24-hour notice before the 
mailing is presented.
    b. Mailings prepared as palletized packages must consist of 5-digit 
packages, each containing at least eight pieces or weighing 20 pounds, 
whichever occurs first. No package may exceed 40 pounds. If there are 
more than 20 pounds of mail to a 5-digit destination, the mailer must 
prepare the minimum number of packages that weigh from 20 to 40 pounds 
each.
    [Redesignate E630.4.6 as E713.3.6, change the subclass name, change 
``bundles'' to ``packages,'' and remove ``1,000 cubic inches'' to read 
as follows:]

3.6  BMC Rate

    To qualify for the Media Mail BMC presort rate, a piece must be in 
a mailing of at least 500 pieces of Media Mail receiving identical 
service and prepared and sorted either under M730 to full or 
substantially full BMC sacks or to BMC pallets under M045. These 
conditions also apply:
    a. Mailings of at least 500 nonmachinable outside parcels may 
qualify for the Media Mail BMC presort rate if prepared to preserve 
sortation by BMC as prescribed by the mailing office postmaster. The 
postmaster may require a 24-hour notice before the mailing is 
presented.
    b. Mailings prepared as palletized packages must consist of BMC 
packages, each containing at least eight pieces or weighing 20 pounds. 
No package may exceed 40 pounds. If there are more than 20 pounds of 
mail to a BMC destination, the mailer must prepare the minimum number 
of packages that weigh from 20 to 40 pounds each.
    [Add new E714 as follows:]

E714  Library Mail

    [Redesignate E630.5.1 as E714.1.0 and amend by changing the class 
name to read as follows:]
1.0  RATE ELIGIBILITY
    Library Mail is Package Services matter meeting the standards in 
E710 and those below. Library Mail rates are based on the weight of the 
piece without regard to zone. The rate categories and barcoded discount 
are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Library Mail 
not mailed at a 5-digit or BMC rate.
    b. 5-Digit Presort Rate. The 5-digit rate (Level A) applies to a 
presorted mailing of at least 500 pieces of Library Mail that meet the 
other requirements of 3.0 and are prepared and presorted to 5-digit 
destination ZIP Codes as specified in M700 or M041 and M045.
    c. BMC Presort Rate. The BMC rate (Level B) applies to a presorted 
mailing of at least 500 pieces of Library Mail that meet the other 
requirements of 3.0 and are prepared and presorted to destination bulk 
mail centers as specified in M700 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to machinable 
parcels (C050) that are part of a mailing of at

[[Page 52515]]

least 50 pieces of Library Mail, mailed at single-piece rates or BMC 
presort rates, and bear a correct, readable barcode for the ZIP Code 
shown in the delivery address in accordance with C850. The discount 
does not apply to pieces mailed at the Library Mail 5-digit presort 
rates.
    [Add new E714.2.0 that follows:]
2.0  QUALIFICATION
    [Redesignate E630.5.2 as E714.2.1 and amend the heading and 
references to read as follows:]

2.1  Sender, Recipient, and Contents

    Each piece must show in the address or return address the name of a 
school, college, university, public library, museum, or herbarium or 
the name of a nonprofit religious, educational, scientific, 
philanthropic (charitable), agricultural, labor, veterans, or fraternal 
organization or association. For Library Mail standards, these 
nonprofit organizations are defined in E670. Only the articles 
described in 2.2 and 2.3 may be mailed at the Library Mail rate.
    [Redesignate E630.5.3 as E714.2.2 and revise the heading to read as 
follows; no change to text:]

2.2  Qualified Mailings Between Entities

    [Redesignate E630.5.4 as E714.2.3 and revise the heading to read as 
follows; no change to text.]

2.3  Qualified Mailings ``To'' or ``From''

    [Redesignate E630.5.5 as E714.2.4 and change the cross reference 
from E611 to E710; no other changes to text.]
    [Redesignate E630.5.6 as E714.2.5 and change the cross reference 
from E611 to E710; no other changes to text.]
    [Redesignate E630.6.0 as E714.3.0 and change the cross reference 
from M630 to M740; no other changes to text.:]
* * * * *
    [Redesignate E630.7.0 as E715.]

E715 Bulk Parcel Post

    [Reserved]
* * * * *
    [Add new E750 as follows:]

E750  Destination Entry

    [Add new heading E751 to read as follows:]

E751  Parcel Post

    [Redesignate E652.1.0 as E751.1.0.]

1.1  Definitions

    [Amend 1.1 to change cross reference M630 to M710; no other changes 
to text.]
* * * * *

1.3  DBMC Rates

    [Amend 1.3 to replace M630 with M710; no other changes to text.]

1.4   DSCF and DDU Rates

    [Amend 1.4a and b to replace M630 with M710; no other changes to 
text.]

1.5  Postage Payment

    [Amend 1.5 to change class name from ``Standard Mail (B)'' to 
``Package Services'' and change P750 to P950 as cross reference for 
plant-verified drop shipments; no other changes to text.]
* * * * *
    [Redesignate E652.2.0 as E751.2.0.]
2.0  PREPARATION
* * * * *

2.2  Containers

    [Amend 2.2a and b to replace the two references to M630 with M710 
and M722, respectively; amend 2.2c to replace M630 with M710; no other 
changes to text.]
    [Redesignate E652.3.0 as E751.3.0; no change to text.]
    [Redesignate E652.4.0--4.13 as E751.4.0-4.13 and amend to read as 
follows:]
* * * * *

4.2  Mail Separation and Presentation

    [Amend 4.2 to change the reference P750 to P950; in 4.2a and b 
change references from M630 to M710; and in 4.2b change the references 
from P710, P720, and P730 to P910, P920, and P930, respectively; no 
other changes to text.]
* * * * *

4.4  Appointments

    [Amend 4.4a to clarify that an exception exists for shipments 
containing 100 percent Periodicals and shipments of perishables, and 
amend 4.4d by changing ``Standard Mail (B)'' to ``Package Services 
mail'' to read as follows:]
    Appointments must be made for destination entry rate mail as 
follows:
    a. Except for local mailers, shipments containing 100 percent 
Periodicals mail and mailings of perishable commodities (C022) under 
4.5, appointments for deposit of destination entry rate mail at BMCs, 
ASFs, and SCFs must be scheduled through the appropriate appointment 
control center at least a day in advance.
* * * * *
    d. When Periodicals are transported together with Standard Mail or 
Package Services mail as a mixed load (E250), an appointment must be 
obtained for deposit at a destination entry facility.

4.5  Exceptions to Scheduling Standard

    [Restructure and amend 4.5 to clarify that scheduling exceptions 
are also made for shipments containing 100 percent of Periodicals and 
shipments of perishables to read as follows:]
* * * * *
    b. Exceptions to the scheduling standard are made for shipments of 
products recognized by the Postal Service as perishables under C020. 
While an appointment is not required for shipments of perishables, the 
destination facility must be notified at least 24 hours in advance of 
deposit to facilitate timely handling of the load.
    c. No appointment is required for shipments containing 100 percent 
Periodicals mail, nor is notification to the destination facility of 
their arrival required. An advance notice of 24 hours is recommended to 
facilitate the development of facility unloading schedules.
* * * * *
    [Redesignate E652.5.0 as E751.5.0; no changes to text.]
    [Redesignate E652.6.0 and Exhibit E652.6.0 as E751.6.0 and Exhibit 
E751.6.0; no changes to text.]
    [Redesignate E652.7.0 and Exhibit E652.7.0 as E751.7.0 and Exhibit 
E751.7.0 and change the class name to Package Services; no other 
changes to text.]
    [Redesignate E652.8.0 and Exhibit E652.8.0 as E751.8.0 and Exhibit 
E751.8.0; no other changes to text.]
    [Add new E752 to read as follows:]

E752  Bound Printed Matter

1.0  BASIC STANDARDS

1.1  General

    Destination entry discounts apply to Presorted and Carrier Route 
Bound Printed Matter (BPM) that is deposited at a destination bulk mail 
center (DBMC), destination sectional center facility (DSCF), or 
destination delivery unit (DDU) as specified below. Eligibility for a 
destination entry rate is determined by the sort level, processing 
category of the mail and the type of container the mail is in (i.e., 
sacked or palletized). Each piece can claim only one destination entry 
rate; an individual pallet may contain pieces claimed at different 
destination entry rates. There are no destination entry rates for 
single-piece BPM.

1.2  Volume

    Each destination entry rate mailing must contain at least 300 
pieces of Presorted BPM or 300 pieces of Carrier Route BPM. Each group 
of destination

[[Page 52516]]

entry rate pieces prepared for deposit at different destination post 
offices must be presented as separate mailings meeting separate minimum 
volume requirements. Separate Presorted and Carrier Route BPM mailings 
may be co-palletized under M041 and M045. Pieces deposited at the same 
postal facility, but claimed at different destination entry rates, may 
be included in a single mailing and reported on the same postage 
statement (subject to one minimum volume requirement), if the 
destination entry post office is the proper facility for claiming each 
of the destination entry discounts. Alternatively, when Presorted Bound 
Printed Matter or Carrier Route Bound Printed Matter mailings are 
submitted under PVDS procedures, mailers may use the total of all line 
items for all destinations on a PVDS register or PVDS postage statement 
to meet the respective 300-piece minimum volume requirements for 
Presorted and Carrier Route mailings. This means a mailer may enter 
fewer than 300 pieces per Presorted or Carrier Route mailing at an 
individual destination, provided there is a total of at least 300 
Presorted rate pieces and/or 300 Carrier Route rate pieces for all of 
the entry points for that single mailing job listed on the PVDS 
register or PVDS postage statement.

1.3  Postage

    Postage payment for destination entry mailings is subject to the 
same standards that apply generally to BPM. Postage and fees are paid 
to the post office that verifies the mailings. The destination entry 
mailing fee must be paid for the current 12-month period at each postal 
facility where the mailing(s) are verified.

1.4  Documentation

    Each mailing must be accompanied by the appropriate Form 3605 and 
Form 8125. No additional documentation is required for destination 
entry rates.

1.5  Plant Loads

    Plant load mailings, including expedited plant load shipments, are 
not eligible for destination entry discounts.
2.0  DESTINATION BULK MAIL CENTER (DBMC) RATES

2.1  General Eligibility

    Pieces in a mailing meeting the standards in 1.0, 2.0 and 5.0 
through 7.0 are eligible for the DBMC rate when they meet all of the 
following conditions:
    a. are eligible for and prepared to qualify for Presorted, or 
Carrier Route rates, subject to the corresponding standards for those 
rates.
    b. are deposited at a BMC or ASF.
    c. 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 
E751.5.0.
    d. are placed in a 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 E751.5.0).

2.2  Presorted Flats

    Presorted flats in sacks or on pallets at all sort levels may claim 
DBMC rates. Separate mixed ADC sacks must be prepared for flats 
eligible for and claimed at the DBMC rate and for flats not claimed at 
the DBMC rate. All pieces in an ADC sack or in a palletized ADC package 
are eligible for the DBMC discount if the ADC facility ZIP Code (as 
shown in Line 1 of the corresponding sack label or the ADC facility 
that is the destination of the palletized ADC package as would be shown 
on an ADC sack label for that facility using DMM L004, Column B) is 
within the service area of the BMC or ASF at which the sack is 
deposited. Mail must entered at the appropriate facility under 2.1.

2.3  Presorted Machinable Parcels

    Presorted machinable parcels in sacks or on pallets at all sort 
levels may claim DBMC rates. Machinable parcels palletized under M045 
or sacked under M722 may be sorted to destination BMCs under L601 or to 
destination BMCs and ASFs under L601 and L602. 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 are claimed, 
under applicable volume standards, using L602. Mailers may also opt to 
sort machinable parcels only to destination BMCs under L601. When 
machinable parcels are sorted under L601, only mail for 3-digit ZIP 
Codes served by a BMC as listed in Exhibit E751.5.0 are eligible for 
DBMC rates (i.e., mail for 3-digit ZIP Codes served by an ASF in 
Exhibit E751.5.0 are not eligible for DBMC rates, nor are 3-digit ZIP 
Codes that do not appear on Exhibit E751.5.0). Machinable parcels 
prepared in mixed BMC sacks or on mixed BMC pallets that are sorted to 
the origin BMC under M045 or M722 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 E751.5.0.

2.4  Presorted Irregular Parcels

    Presorted irregular parcels in sacks or on pallets at all sort 
levels may claim DBMC rates. All pieces in an ADC sack or in a 
palletized ADC package are eligible for the DBMC discount if the ADC 
facility ZIP Code (as shown in Line 1 of the corresponding sack label 
or the ADC facility that is the destination of the palletized ADC 
package as would be shown on an ADC sack label for that facility using 
DMM L004, Column B) is within the service area of the BMC at which the 
sack is deposited under E751.5.6. Separate mixed ADC sacks must be 
prepared for pieces eligible for and claimed at the DBMC rate and for 
parcels not claimed at the DBMC rate. Mail must entered at the 
appropriate facility under 2.1.

2.5  Carrier Route Flats

    Carrier route flats in sacks or on pallets at all sort levels may 
claim DBMC rates. Mail must entered at the appropriate facility under 
2.1.

2.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels in individual carrier route sacks 
may claim DBMC rates. Mail must entered at the appropriate facility 
under 2.1.

2.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks at both sort levels or on 
pallets at all sort levels may claim DBMC rates. Mail must entered at 
the appropriate facility under 2.1.
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES

3.1  General

    Pieces in a mailing meeting the standards in 1.0, 3.0 and 5.0 
through 7.0 are eligible for the DSCF rate when they meet all of the 
following conditions:
    a. are eligible for and prepared to qualify for Presorted, or 
Carrier Route rates, subject to the corresponding standards for those 
rates.
    b. are deposited at an SCF listed in L005, except that machinable 
parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit 
E751.6.0 must be entered at the corresponding BMC facility shown in 
that Exhibit (not at the SCF) unless an exception is requested and 
granted. An exception to Exhibit E751.6.0 must be requested at least 15 
days in advance of the mailing in writing from the Area Manager, 
Operations Support, who has jurisdiction over the BMC and SCF.

[[Page 52517]]

Exceptions, if granted, will be for a limited time.
    c. are addressed for delivery to one of the 3-digit ZIP Codes 
served by the SCF where deposited under L005, and
    d. are placed in a sack or pallet (subject to the standards for the 
rate claimed) that is labeled to the DSCF where deposited, or labeled 
to a postal facility within that SCF's service area (see L005).

3.2  Presorted Flats

    Presorted flats in sacks for the 5-digit, 3-digit, and optional SCF 
sort levels or on pallets at the optional 5-digit scheme, 5-digit, 
optional 3-digit, SCF and ASF sort levels may claim DSCF rates. Mail 
must entered at the appropriate facility under 3.1.

3.3  Presorted Machinable Parcels

    Presorted machinable parcels in sacks or on pallets at the 5-digit 
sort level may claim DSCF rates. For palletized mail, see 3.1b. Mail 
must entered at the appropriate facility under 3.1. Pallets must not be 
prepared if the 5-digit facility is unable to handle pallets. Refer to 
the Drop Ship Product maintained by the National Customer Support 
Center (NCSC) (see G043) to determine which 5-digit delivery facilities 
can handle pallets.

3.4  Presorted Irregular Parcels

    Presorted irregular parcels in sacks at the 5-digit, 3-digit, and 
optional SCF sort levels, or on pallets at the 5-digit, optional 3-
digit, SCF, and ASF sort levels may claim DSCF rates under 3.1.

3.5  Carrier Route Flats

    Carrier route flats in sacks at all sort levels or on pallets at 
optional 5-digit scheme carrier routes, 5-digit carrier routes, 
optional 3-digit, SCF, and ASF sort levels may claim DSCF rates under 
3.1.

3.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels in individual carrier route sacks 
may claim DSCF rates. Mail must entered at the appropriate facility 
under 3.1.

3.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks at both sort levels or on 
pallets at the 5-digit, optional 3-digit, SCF and ASF sort levels may 
claim DSCF rates. Mail must entered at the appropriate facility under 
3.1.
4.0  DESTINATION DELIVERY UNIT (DDU) RATES

4.1  General

    Pieces in a mailing meeting the standards in 1.0, and 4.0 through 
7.0 are eligible for the DDU rate when they meet all of the following 
conditions:
    a. are eligible for and prepared to qualify for Presorted, or 
Carrier Route rates, subject to the corresponding standards for those 
rates.
    b. Be addressed for delivery within the ZIP Code(s) served by the 
destination delivery unit.
    c. Be deposited:
    1. For flats, at the DDU designated by the USPS district drop 
shipment coordinator where the carrier cases the mail.
    2. For irregular parcels and machinable parcels, refer to the Drop 
Ship Product for the 5-digit destination. When the Drop Ship Product 
shows that mail for a single 5-digit ZIP Code area is delivered out of 
more than one postal facility, use the facility from which the majority 
of city carrier routes are delivered as the facility at which the DDU 
parcels must be entered and to determine whether that facility can 
handle pallets, unless the 5-digit ZIP Code is listed in Exhibit 
E751.7.0 or Exhibit E751.8.0. For ZIP Codes in Exhibit E751.7.0 and 
Exhibit E751.8.0 use the name of the facility associated with the 5-
digit ZIP Code on the respective exhibit as the facility at which DDU 
mail must be entered for that 5-digit ZIP Code. This facility name 
should be used along with the Drop Ship Product to determine if that 
facility can handle pallets. If a DDU facility cannot handle pallets, 
and a mailer transports mail to the DDU facility on pallets, the driver 
will have to unload the pallets into a container specified by the 
delivery unit.

4.2  Presorted Flats

    Presorted flats are not eligible for DDU rates.

4.3  Presorted Machinable Parcels

    Presorted machinable parcels in 5-digit sacks or on 5-digit pallets 
may claim DDU rates under 4.1.

4.4  Presorted Irregular Parcels

    Presorted irregular parcels in 5-digit sacks, on 5-digit pallets, 
or prepared as bedloaded 5-digit packages, may claim DDU rates when 
entered at the appropriate facility under 4.1.

4.5  Carrier Route Flats

    Carrier Route flats in sacks, on optional 5-digit carrier routes 
scheme and 5-digit carrier routes pallets, or prepared as bedloaded 
carrier route packages, may claim DDU rates under 4.1.

4.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels sorted to carrier route sacks may 
claim DDU rates when entered at the appropriate facility under 4.1.

4.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks, on 5-digit pallets, or 
prepared as bedloaded packages, may claim DDU rates when entered at the 
appropriate facility under 4.1.
5.0  VERIFICATION

5.1  Place

    As directed by the postmaster, the mailer must present destination 
entry mailings to USPS employees for verification either:
    a. At the origin mailer's plant or the origin post office serving 
the mailer's plant under an authorized plant-verified drop shipment 
system.
    b. At the destination post office or business mail entry unit.

5.2  Mail Separation and Presentation

    Destination entry rate mail must be verified under a PVDS system 
(P750) or be presented for verification and acceptance at a BMEU 
located at a destination BMC, destination SCF, or other designated 
destination postal facility. Only plant-verified drop shipments may be 
deposited at a destination delivery unit not co-located with a post 
office or other postal facility having a business mail entry unit. When 
presented to the USPS, destination entry mailings must meet the 
following requirements:
    a. Each mailing must be separated from other mailings for 
verification. For PVDS, destination entry rate mailings for deposit at 
one destination postal facility must be separated from mailings for 
deposit at other facilities to allow for reconciliation with each 
accompanying Form 8125, 8125-C, or 8125-CD.
    b. Mail must be separated from freight transported on the same 
vehicle.
    c. If Periodicals mail is on the same vehicle as BPM, then the 
Periodicals mail should be loaded toward the tail of the vehicle so 
that, for each destination entry, Periodicals mail can be offloaded 
first.
    d. Form 8125, 8125-C, or 8125-CD must accompany all PVDS mailings.

5.3  Form 8125

    When mailings are verified and paid for at a postal facility 
different from the one at which they are accepted as mail and deposited 
into the mailstream, the mailer must ensure that they are accompanied 
by a Form 8125 completed by the mailer and the verifying post office.

[[Page 52518]]

5.4  At BMC

    For a mailing to be verified at a BMC, the post office where the 
mailer's account or license is held must be within the service area of 
that BMC. The post office must authorize the BMC to act as its agent by 
sending Form 4410 to the BMC.

5.5  PVDS Seal

    The mailer may ask that a PVDS band seal secure the vehicle 
containing verified mailings before dispatch to the destination 
facility.

5.6  Mailer Transport

    The mailer must transport the PVDS mailing from the place where it 
was verified to the destination postal facility.

5.7  Volume Standards

    Except as permitted for a local mailer under 7.0, destination entry 
mailings are subject to these volume standards:
    a. Regardless of total volume, the pieces for which a destination 
rate is claimed must represent more than 50% of the mail (by weight or 
pieces, whichever is greater) presented by the same mailer within any 
24-hour period. For this standard, mailer is the party presenting the 
material to the USPS (or for whom a transportation company has 
presented the material to the USPS).
    b. The same mailer may not in a 24-hour period present for 
verification and acceptance more than four destination rate mailings at 
the same destination postal facility (or at another acting as its 
agent). The mailer may ask for a waiver of this limit when scheduling 
the deposit of the mailings. There is no maximum for plant-verified 
drop shipments.
6.0  DEPOSIT

6.1  When, Where

    Each mailing claimed at a destination rate must be deposited at the 
time and location specified by the USPS.

6.2  Vehicles

    Mailings must be presented in vehicles that are compatible with 
dock, yard, and DDU operations, as applicable.

6.3  Appointments

    Appointments must be made for destination entry rate mail as 
follows:
    a. Except for a local mailer under 7.0 and mailings of perishable 
commodities, appointments for deposit of destination entry rate mail at 
BMCs, ASFs, and SCFs must be scheduled through the appropriate 
appointment control center at least one business day in advance. Same-
day appointments may be granted by a control center only through a 
telephone request. All appointments for BMC loads must be scheduled by 
the appropriate BMC control center. Appointments for SCFs and ASFs must 
be scheduled through the appropriate district control center. 
Appointments may be made up to 30 calendar days before a desired 
appointment date. The mailer must adhere to the scheduled mail deposit 
time and location. The mailer must cancel any appointment by notifying 
the appropriate control center at least 24 hours in advance of a 
scheduled appointment.
    b. Electronic appointments may be made through the Dropship 
Appointment System (DSAS) by a mailer or agent using a USPS-issued 
computer logon ID. Electronic appointments or cancellations must be 
made at least 12 hours before the desired time and date. All 
information required by the USPS appointment system regarding a mailing 
must be provided.
    c. For deposit of DDU mailings, an appointment must be made by 
contacting the DDU at least 24 hours in advance. If the appointment 
must be canceled, the mailer must notify the DDU at least one business 
day in advance of a scheduled appointment. Recurring appointments are 
allowed if shipment frequency is once a week or more often.
    d. When Periodicals are transported together with BPM as a mixed 
load (E250), an appointment must be obtained for deposit at a 
destination entry facility.

6.4  Advance Scheduling

    Except under 7.0, a mailer must schedule deposit of destination 
entry rate mailings at least 24 hours in advance by contacting the 
proper district or BMC control center or destination delivery unit. 
Appointments at delivery units must be made by calling the delivery 
unit at least 24 hours in advance. Appointments for ASFs, SCFs, or for 
any multistop loads must be made through the USPS district control 
center or DSAS in 6.3. Appointments for BMC loads must be scheduled by 
the proper BMC control center. When making an appointment, or as soon 
as available, the mailer must provide the control center or DDU with 
the following information:
    a. Mailer's name and address and, when applicable, the name and 
telephone number of the mailer's agent or local contact.
    b. Description of what is being mailed, product name, number of 
mailings, volume of mail, how prepared and whether containerized (e.g., 
pallets). For DDU entries, the mailer also must provide the 5-digit ZIP 
Code(s) of the mail being deposited.
    c. Where the mailing was verified.
    d. Postage payment method.
    e. Requested date and destination facility for mailing.
    f. Vehicle identification number, size, and type.

6.5  Adherence to Schedule

    The mailer must follow the scheduled deposit time or cancel the 
appointment by notifying the designated control center. Destination 
facilities may refuse acceptance or deposit of unscheduled mailings or 
shipments that arrive more than 2 hours after the scheduled appointment 
at ASFs, BMCs, or SCFs or more than 20 minutes at delivery units.

6.6  Redirection by USPS

    A mailer may be directed to transport destination entry rate 
mailings to a facility other than the designated DDU, SCF, or BMC due 
to facility restrictions, building expansions, peak season mail 
volumes, or emergency constraints.

6.7  Redirection at Mailer's Request

    For service reasons, a mailer may ask to transport destination SCF 
rate mail to a facility other than the designated SCF. This exception 
may be approved only by the district control center serving the 
destination facility. To qualify for the SCF rate in this situation, 
mail deposited at a facility other than the SCF must destinate for 
processing within that facility and must not require backhauling to the 
SCF.

6.8  Recurring Appointments

    Recurring appointments refers to a drop shipment that is delivered 
to a destination office with a frequency of at least once a week on the 
same time and day(s). Mailings must be of a comparable product in terms 
of mail class, size, volume, and containerization (pallets, pallet 
boxes, etc.). A request to establish recurring appointments must be 
written on company letterhead to the postal facility manager/
postmaster. The drop shipment appointment control office/postmaster 
will respond to all requests within 10 days. Recurring appointments may 
be made for a period not to exceed 6 months. Thereafter, a new 
application must be submitted to ensure that up-to-date mailer 
information is on file. Written request for an additional 6 months may 
be made within 60 days prior to the expiration of a current 
arrangement. Failure to adhere to scheduled appointments or other abuse 
of the procedures will result in revocation of recurring appointment

[[Page 52519]]

privileges. Requests for recurring appointments must include the 
following:
    a. Name, address, and telephone number of the mailer.
    b. Transportation agent's name (contact person) and telephone 
number(s).
    c. Mail volume and preparation (trays/sacks/parcels).
    d. Containerization.
    e. Size and type of trailer(s) transporting mail.
    f. Frequency/schedule.

6.9  Vehicle Unloading

    Unloading of destination entry mailings is subject to these 
conditions:
    a. Properly prepared containerized loads (e.g., pallets) are 
unloaded by the USPS at BMCs, ASFs, and SCFs. The USPS does not unload 
or permit the mailer (or mailer's agent) to unload palletized loads 
that are unstable or severely leaning or that have otherwise not 
maintained their integrity in transit.
    b. At BMCs, and ASFs, the driver must unload bedloaded shipments 
within 8 hours of arrival. Combination containerized and bedloaded 
mailings are classified as bedloaded shipments for unload times. The 
USPS may assist in unloading.
    c. At delivery units, the driver must unload all mail within 1 hour 
of arrival. If pallets (including pallet boxes on pallets) are stacked, 
the driver is required to unload, unstack, and unstrap them. If a 
mailer transports palletized mail (including sacks on pallets) to a DDU 
facility that cannot handle pallets, then the driver must unload the 
pallets into a container specified by the delivery unit.
    d. When driver unloading is required, the driver or assistant must 
stay with and continue to unload the vehicle once at the dock.
    e. The driver must remove the vehicle from USPS property after 
unloading. The driver and assistant are not permitted in USPS 
facilities except for the dock and designated driver rest area.

6.10  Demurrage

    The USPS is not responsible for demurrage or detention charges 
incurred by a mailer who presents destination entry rate mailings.

6.11  Appeals

    Mailers who believe they are denied equitable treatment may appeal 
to the manager, Customer Service (district), responsible for the 
destination postal facility.
7.0  EXCEPTION FOR LOCAL MAILER
    The restrictions in 5.7 and 6.3 do not apply when a mailer deposits 
mailings for verification and acceptance at the local post office 
serving the facility where the mail was prepared, if the mailings are 
not verified under a plant load authorization or plant-verified drop 
shipment postage payment authorization. Under this exception, the 
mailer may claim the destination entry rates for mailings or portions 
of mailings deposited at the local post office that meet the standards 
in 2.0, 3.0, or 4.0.
* * * * *

E753  Combining Package Services Parcels for Destination Entry

1.0  COMBINING PARCELS
    Package Services mail-Parcel Post, Media Mail, Library Mail, and 
Bound Printed Matter-parcels may be combined, at the mailer's option 
and when authorized by USPS, in common 5-digit sacks or pallets for 
entry either at a destination sectional center facility (DSCF) or a 
destination delivery unit (DDU), only. Combined parcel mailings must 
meet the standards of E751, E752, and this section.

1.1  Basic Standards

    Only Package Services mail that qualifies as a machinable, 
nonmachinable, or irregular parcel under C050 and meets the following 
conditions may be combined under this standard:
    a. Parcels may be combined either in 5-digit sacks or on 5-digit 
pallets (including pallet boxes on pallets) for deposit at a DSCF or 
DDU. Combining other Package Services parcels with Bound Printed Matter 
parcels claimed at a carrier route rate is not permitted. All parcels 
must be prepared in sacks as required by M700 or on pallets as required 
by M045 unless stated otherwise in this section. Parcels may not be 
prepared on pallets (including pallet boxes on pallets) for the DSCF 
rate if the 5-digit delivery facility is unable to handle pallets. 
Refer to the Drop Ship Product maintained by the National Customer 
Support Center (NCSC) (see G043) to determine which 5-digit delivery 
facilities can handle pallets (or pallet boxes on pallets).
    b. Parcels may be combined if the following minimum quantity 
requirements are met: sacks-at least 10 combined pieces; pallets-at 
least 50 combined pieces and a combined weight of 250 pounds of mail, 
or 36 inches of mail.
    c. Machinable and irregular parcels may be combined in the same 5-
digit container.
    d. Separate postage statements must be prepared, as appropriate, 
for each subclass and postage payment method. Pieces may be claimed at 
single piece rates, presorted rates, and destination entry rates, if 
applicable.
    e. Parcels of a subclass for which no destination entry discount is 
offered remain ineligible for a destination entry discount but may be 
combined with pieces that are eligible for a DSCF or DDU entry 
discount. There are no destination entry rates for single-piece Parcel 
Post (less than 50 Parcel Post pieces in a mailing) and single-piece 
Bound Printed Matter, nor for single-piece or presorted Library Mail 
and Media Mail.
    f. Minimum mailing requirements for Parcel Select destination entry 
rates (50 pieces), Presorted Bound Printed Matter (300 pieces), 
Presorted Library Mail (500 pieces each level) and Presorted Media Mail 
(500 pieces each level), must be met separately and are unchanged by 
combining.
    g. All parcels must have correct postage affixed or must be 
prepared under an approved manifesting procedure as provided in P900 
and 5.0.
    h. All parcels entered at a DSCF or DDU are ineligible for the 
barcoded discount.
    i. The deposit of combined mail at a destination facility must be 
in accordance with applicable drop shipment standards.

1.2  Authorization

    The requirements for authorization to combine parcels are as 
follows:
    a. A mailer who wants to present combined Package Services mailings 
must submit a written request to the RCSC serving the post office where 
the mailer is located. The request must show names of mail owner and 
mailer (if different); address of the mailer's plant and mailing office 
(if different); the parcel subclasses in a combined mailing; evidence 
of authorization to mail under P710, expected date of first mailing; 
and sample of required computer-generated listings. The expected 
frequency of mailings under this section must be listed as part of the 
request.
    b. An authorization is valid only for a specified combination of 
mail subclasses and rate categories and for a specified period of time. 
It need not be limited to a single mailing or a specific number of 
mailings.
    c. An authorization expires at the same time as the applicable 
manifest postage payment system authorization and may not be written 
for a period of more than 2 years. A mailer may terminate an 
authorization at any time by written notice to the postmaster of the 
office serving the mailer's location. The USPS may terminate an

[[Page 52520]]

authorization by written notice if it finds that the mailer does not 
meet the applicable standards.
2.0  COMBINED PARCELS PREPARED IN SACKS

2.1  Rate Eligibility

    In addition to the applicable standards in E750 for destination 
entry Package Services mail, the following standards apply for combined 
Package Services mail prepared in sacks for destination entry rates 
where applicable:
    (a) Parcel Post and Parcel Select rates are applied as follows:
    (1) Parcel Select parcels that are contained in 5-digit sacks, each 
holding at least 10 pieces of any combination of Bound Printed Matter, 
Parcel Select, Parcel Post (pieces ineligible for destination entry 
rates) Media Mail, and/or Library Mail parcels, qualify for Parcel 
Select DSCF rates, provided all other requirements for the DSCF rate in 
E751 are met.
    (2) Parcel Select pieces that are contained in 5-digit sacks, each 
holding at least 10 pieces of any combination of Bound Printed Matter, 
Parcel Select, Parcel Post (pieces ineligible for destination entry 
rates), Media Mail, and/or Library Mail parcels, qualify for Parcel 
Select DDU rates, provided all other requirements for the DDU rate in 
E751 are met.
    (3) Parcel Post parcels for which the 50-piece minimum mailing 
requirement for Parcel Select rates is not met that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of 
Bound Printed Matter, Parcel Select, Media Mail, and/or Library Mail 
parcels, qualify for Parcel Post rates.
    b. Bound Printed Matter rates are applied as follows:
    (1) Presorted Bound Printed Matter parcels that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of 
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for 
destination entry rates), Media Mail, and/or Library Mail parcels, 
qualify for Bound Printed Matter DSCF rates, provided all other 
requirements for the DSCF rate in E752 are met.
    (2) Presorted Bound Printed Matter parcels that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of 
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for 
destination entry rates), Media Mail, and/or Library Mail parcels, 
qualify for Bound Printed Matter DDU rates, provided all other 
requirements for the DDU rate in E752 are met.
    (3) Bound Printed Matter parcels for which the 300-piece minimum 
mailing requirement for Presorted rates is not met and that are 
contained in 5-digit sacks, each holding at least 10 pieces of any 
combination of Bound Printed Matter, Parcel Select, Parcel Post (pieces 
ineligible for destination entry rates), Media Mail, and/or Library 
Mail parcels, qualify for Bound Printed Matter single-piece rates.
    c. Library Mail rates are applied as follows:
    (1) Presorted Library Mail parcels that are contained in 5-digit 
sacks, each holding at least 10 pieces of any combination Bound Printed 
Matter, Parcel Select, Parcel Post (pieces ineligible for destination 
entry rates), Media Mail, and/or Library Mail parcels, qualify for 5-
digit Library Mail rates.
    (2) Library Mail parcels for which the 500-piece minimum mailing 
requirement for 5-digit Presorted rates is not met that are contained 
in 5-digit sacks, each holding at least 10 pieces of any combination of 
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for 
destination entry rates), Media Mail, and/or Library Mail parcels, 
qualify for single-piece Library Mail rates.
    d. Media Mail rates are applied as follows:
    (1) Presorted Media Mail parcels that are contained in 5-digit 
sacks, each holding at least 10 pieces of any combination Bound Printed 
Matter, Parcel Select, Parcel Post (pieces ineligible for destination 
entry rates), Media Mail, and/or Library Mail parcels, qualify for 5-
digit Media Mail rates.
    (2) Media Mail parcels for which the 500-piece minimum mailing 
requirement for 5-digit Presorted rates is not met, that are contained 
in 5-digit sacks, each holding at least 10 pieces of any combination of 
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for 
destination entry rates), Media Mail, and/or Library Mail parcels, 
qualify for single-piece Media Mail rates.

2.2  Sack Preparation

    Only 5-digit sacks may be prepared. Each sack must contain a 
minimum of 10 pieces of any combination of Package Services parcels. 
Sack labels must be prepared as follows: 5-digit: For line 1, use 5-
digit ZIP Code on mail. For line 2, use ``PSVC PARCELS 5D.''
3.0  COMBINED PARCELS PREPARED ON PALLETS

3.1  Rate Eligibility

    In addition to the applicable standards in E750 for destination 
entry Package Services mail, the following standards apply for combined 
Package Services mail prepared on pallets for destination entry rates 
where applicable:
    a. Parcel Post: Under these standards, Parcel Post pieces may be 
combined with other Package Services mail to meet the pallet minimums. 
Parcel Select-DSCF rates may be claimed for pieces that are part of a 
mailing of at least 50 pieces of Parcel Post, prepared on 5-digit 
pallets of at least 50 pieces and 250 pounds of Package Services mail 
or 36 inches of mail, and deposited at a designated sectional center 
facility under E750. Parcel Select-DDU rates may be claimed for any 
pieces that are part of a mailing of at least 50 pieces of Parcel Post, 
prepared on 5-digit pallets of combined Package Services mail, and 
deposited at a designated DDU under E750.
    b. Bound Printed Matter: The DSCF and DDU rates apply to Presorted 
(excluding carrier route) Bound Printed Matter mailings that meet the 
standards for volume and presort under E752, are prepared on 5-digit 
pallets of at least 50 pieces and 250 pounds or 36 inches of mail, and 
are deposited at a designated sectional center facility or designated 
DDU. Under these standards, the Bound Printed Matter pieces may be 
combined with other Package Services mail to meet the pallet minimums. 
Single piece Bound Printed Matter rate mail may be combined with other 
Package Services mail when placed on a qualifying 5-digit pallet and 
deposited at a designated sectional center facility or designated DDU.
    c. Library Mail: 5-Digit presort and BMC presort rates apply to 
mailings meeting the standards for volume and presort under E714 and 
may be combined with other Package Services mail when prepared and 
presorted on 5-digit pallets of at least 50 pieces and 250 pounds or 36 
inches of mail and deposited at a designated sectional center facility 
or designated DDU. Single piece rate Library Mail may be combined with 
other Package Services mail when prepared on qualifying 5-digit pallets 
of at least 50 pieces and 250 pounds or 36 inches of mail that are 
deposited at a designated sectional center facility or DDU. Single 
piece Library Mail may be combined with other Package Services mail 
when placed on a qualifying 5-digit pallet and deposited at a 
designated sectional

[[Page 52521]]

center facility or designated DDU. There is no Library Mail BMC rate 
under E753.
    d. Media Mail: The 5-digit presort rate applies to mailings meeting 
the standards for volume and presort under E713 when combined with 
other Package Services mail, prepared and presorted on 5-digit pallets 
of at least 50 pieces or 250 pounds or 36 inches of mail, and deposited 
at a designated sectional center facility or designated DDU. Single 
piece rate Media Mail may be combined with other Package Services mail 
when placed on qualifying 5-digit pallets that are deposited at a 
designated DSCF or designated DDU. There is no Media Mail BMC rate 
under E753.

3.2  Packages

    Packages prepared on pallets must meet the applicable standards in 
M010, M020, M030, and M045.

3.3  Pallet Preparation

    5-digit pallets may be prepared whenever there are at least 50 
parcels or 250 pounds or 36 inches of combined Parcel Services mail.

3.4  Pallet Presort and Labeling

    Only 5-digit pallets are permitted under E753. For line 1, City, 
State, and 5-digit ZIP Code on mail. For line 2, ``PSVC PARCELS 5D.''
4.0  DOCUMENTATION
    Separate postage statements must be prepared for each Package 
Services mailing. All postage statements must be provided at the time 
of mailing and must be accompanied by a computer-generated manifest 
prepared in accordance with P900 and this section. The manifest must be 
a computer-generated listing in ZIP Code sequence and numbered to 
correspond to the sacks or pallets that describes the content of each 
sack or pallet. The mailer must keep this information for 90 days after 
the mailing is dispatched. If a manifest as described in M045.12.3 is 
already used to qualify for Parcel Select-DSCF rates, the information 
required by this section for combined pieces must be added. A pallet 
identification number must be printed below Line 3 on the pallet label. 
The manifest must show the following information for each sack or 
pallet: the number of pieces, combined weight, and total postage amount 
for each rate category (e.g., Parcel Select-DDU, Bound Printed Matter 
DDU) and a total sack or pallet combined summary of pieces, weight, and 
postage. It must also indicate by subclass and rate category, 
cumulative totals of the number of pieces, weight, and postage of all 
preceding sacks or pallets added to the totals of the current sack or 
pallet and a summary showing the total number of pieces and the total 
postage amount.

F  FORWARDING AND RELATED SERVICES

F000  Basic Services

F010  Basic Information

* * * * *
3.0  DIRECTORY SERVICE
    [Amend 3.0d by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
4.0  BASIC TREATMENT
* * * * *

4.5  Special Services

    [Amend 4.5 by revising 4.5b to add instructions for treatment of 
insured Standard Mail; revise 4.5c by deleting the last sentence to 
read as follows:]
    Mail with special services is treated according to the charts for 
each class of mail in 5.0, except that:
* * * * *
    b. All insured First-Class Mail is forwarded and returned free of 
charge. All insured Standard Mail and Package Services mail is 
forwarded and returned.
    c. Parcels undeliverable as originally addressed and forwarded to 
the addressee at a new address receive special handling service without 
an additional special handling fee.
* * * * *
    [Add new 4.6 to read as follows:]

4.6  Metered Pieces

    Mail paid by postage meter that does not have a delivery address 
and a return address is returned to the post office of mailing. The 
reason for nondelivery is attached but the address correction fee is 
not charged. The piece is returned to the meter licensee upon payment 
of the applicable return postage.
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES
    [Amend 5.1 by changing ``E620'' to ``E620 and E630.'']
* * * * *
    [Amend heading of 5.3 by removing ``(A)'' to read as follows:]

5.3  Standard Mail

    [Amend 5.3 by removing ``(A)'' from ``Standard Mail (A)''; amend 
5.3a by replacing ``Standard Mail (B)'' with ``Package Services'' and 
``Special Standard Mail'' with ``Media Mail.'' Redesignate current 
items g and h, as h and i, respectively; amend redesignated i by 
removing ``(A)'' from ``Standard Mail (A)'' add new g to read as 
follows:]
    Undeliverable Standard Mail is treated as described in the chart 
below and under these conditions:
* * * * *
    g. Standard Mail with insurance, return receipt for merchandise, or 
Delivery Confirmation must be endorsed ``Address Service Requested,'' 
``Forwarding Service Requested,'' or ``Return Service Requested.''
* * * * *
    [Amend the chart in 5.3 by adding the following under ``Change 
Service Requested'' to read as follows:]

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces
------------------------------------------------------------------------
Change Service Requested \1\.  * * * * *
                               This endorsement is not available for
                                mail with special services (e.g.,
                                insured or Delivery Confirmation).
------------------------------------------------------------------------

    [Revise heading of 5.4 to read as follows:]

5.4  Package Services

    [Amend 5.4 by replacing ``Standard Mail (B)'' with ``Package 
Services mail.'' Remove item 5.4c. Add new item 5.4c to read as 
follows:]
    Undeliverable Package Services mail is treated as described in the 
chart below and under these conditions:
* * * * *
    c. Bound Printed Matter with no ancillary service endorsement and 
no special service is disposed of by USPS. It is not forwarded or 
returned to sender. Bound Printed Matter with no ancillary service 
endorsement with a special service is treated as if it is endorsed 
``Forwarding Service Requested.''
* * * * *
    [Amend chart in 5.4 by adding an exception for Bound Printed Matter 
under ``No endorsement'' to read as follows:]

[[Page 52522]]



------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces
------------------------------------------------------------------------
No endorsement...............  Same as USPS action for ``Forwarding
                                Service Requested.'' Exception: Bound
                                Printed Matter with no special service
                                added is disposed of by USPS.
------------------------------------------------------------------------

* * * * *
6.0 ENCLOSURES AND ATTACHMENTS
* * * * *
    [Amend heading and text of 6.2 by removing the ``(A)'' in Standard 
Mail; no other changes to text.]
    [Revise title of 6.3 to read as follows:]

6.3 Package Services

    [Amend 6.3 by replacing references to ``Standard Mail (B)'' with 
``Package Services''; no other changes to text.]
7.0 MIXED CLASSES
    [Amend introductory paragraph of 7.1, 7.1a, and 7.2 by replacing 
``Standard Mail'' with ``Standard Mail or Package Services mail''; no 
other changes to text.]
* * * * *

7.4 Parcel

    [Amend 7.4 to specify that combination parcels are returned at the 
Parcel Post Inter-BMC rate and by replacing ``Special Standard Mail'' 
with ``Media Mail'' to read as follows:]
    A combination parcel containing Media Mail and Bound Printed Matter 
is charged postage at the Parcel Post Inter-BMC zoned rate when 
forwarded or returned.
8.0 DEAD MAIL
    [Amend 8.1b by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'' Amend 8.1e by replacing ``Standard Mail (A)'' with ``Standard 
Mail `` and ``Standard Mail'' with ``Standard Mail and Package 
Services''; no other changes to text.]
* * * * *

F020  Forwarding

* * * * *
2.0 FORWARDABLE MAIL
* * * * *
    [Amend 2.3, 2.4, and 2.6, by replacing ``Standard Mail (B)'' with 
``Package Services mail''; no other changes to text.]
* * * * *
3.0 POSTAGE FOR FORWARDING
* * * * *
    [Amend the title and contents of 3.5 by replacing ``Standard Mail 
(A)'' with ``Standard Mail''; no other changes to text.]
    [Revise title of 3.6 to read as follows:]

3.6 Package Services

    [Amend 3.6 by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
* * * * *

F030  Address Correction, Address Change, FASTforward, and Return 
Services

1.0  ADDRESS CORRECTION SERVICE
* * * * *
    [Amend 1.4 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; no other changes to text.]
* * * * *
2.0  ADDRESS CHANGE SERVICE (ACS)
    [Amend 2.1 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; no other changes to text.]
* * * * *

2.5  Shipper Paid Forwarding

    [Amend 2.5 by adding a reference to the accounting fee for a 
postage due account:]
    Shipper Paid Forwarding is an ACS fulfillment vehicle. It allows 
mailers of Standard Mail machinable parcels and most Package Services 
mail to pay forwarding charges via approved ACS participant code(s). 
For information about Shipper Paid Forwarding, contact the National 
Customer Support Center (see G043). Mailers have the option of paying 
forwarding charges through a postage due advance deposit account. If 
so, then mailers must pay an annual accounting fee.
* * * * *
4.0  SENDER INSTRUCTION
* * * * *

4.2  Special Services

    A change-of-address order covers certified, collect on delivery 
(COD), insured, registered, and return receipt for merchandise mail 
unless the sender gives other instructions or the addressee moves 
outside the United States. This mail is treated as follows:
    [Amend 4.2d to read as follows:]
* * * * *
    d. Insured Standard Mail is forwarded and returned.
* * * * *
    [Amend 4.2e by replacing ``Standard Mail (B)'' with ``Package 
Services mail''; no other changes to text.]
* * * * *

G  GENERAL INFORMATION

G000  The USPS and Mailing Standards

* * * * *

G090  Experimental Classifications and Rates

G094  Ride-Along Rate for Periodicals

1.0  BASIC ELIGIBILITY
    [Amend 1.1, 1.2, and 1.3 by changing ``Standard Mail (A)'' to 
``Standard Mail,'' no other changes to text.]
* * * * *

L  LABELING LISTS

L000  General Use

    [Amend the heading and introductory paragraph of L001 to provide 
for class of mail name changes and to allow use of L001 with Bound 
Printed Matter flats to read as follows:]

L001  5-Digit Scheme--Periodicals Flats and Irregular Parcels, Standard 
Mail Flats and Bound Printed Matter Flats

    When 5-digit scheme sort is used for Periodicals flats and 
irregular parcels, Standard Mail flats, and Bound Printed Matter flats, 
mail for the 5-digit ZIP Codes shown in Column A must be combined on 
pallets (packages on pallets only on merged 5-digit scheme, 5-digit 
scheme carrier routes, or 5-digit scheme pallets, as applicable) or in 
sacks (merged 5-digit scheme or 5-digit scheme carrier routes sacks, as 
applicable) labeled to the corresponding destination shown in Column B.
* * * * *

L002  3-Digit ZIP Code Prefix Matrix

    This matrix provides information about 3-digit ZIP Code prefixes as 
follows:
    [Amend the last sentence of L002d to read as follows:]
    d. * * * Destination SCF Standard Mail rates, destination SCF 
Package Services rates, or SCF zone and per-piece Periodicals rates are 
available only to those ZIP Code areas for which an SCF is shown.
* * * * *

L004  3-Digit Code Prefix Groups--ADC Sortation

    [Revise the next-to-last sentence of the L004 introduction to read 
as follows:]
    * * * To order labels from the USPS Label Printing Center, use Form 
1578-

[[Page 52523]]

B and indicate set number 008 (First-Class Mail), set number 009 
(Periodicals), or set number 010 (Standard Mail and Bound Printed 
Matter). * * *
    [In L004, replace''[STD only]'' with ``[STD and BPM only],'' 
replace ``[PER and STD only]'' with ``[PER, STD, and BPM only],'' and 
replace ``[FCM and STD only]'' with ``[FCM, STD, and BPM only].'']
* * * * *
    [Amend the heading of L600 to include Package Services to read as 
follows:]

L600  Standard Mail and Package Services

L601  BMCs

    [Revise introductory paragraph to read as follows:]
    Use this list for:
    (1) Standard Mail machinable parcels except ASF mail prepared and 
claimed at DBMC rates.
    (2) Standard Mail packages, letter trays, or sacks on pallets.
    (3) Bound Printed Matter machinable parcels.
    (4) Bound Printed Matter packages or sacks on pallets.
    (5) Parcel Post except for ASF mail prepared and claimed at DBMC 
rates and non-machinable BMC Presort or OBMC Presort rate mail.
    (6) Presorted Media Mail and Presorted Library Mail to BMC 
destinations. For labeling mixed BMC sacks and pallets, mailers must 
add ``MXD'' before the Column B information of the BMC serving the 3-
digit ZIP Code prefix of the post office at which the mail is entered.
* * * * *
    [Revise the heading of L602 to read as follows:]

L602  ASFs

    [Revise the introductory paragraph to read as follows:]
    Use this list for:
    (1) Standard Mail machinable parcels if ASF mail is entered at the 
ASF and claimed at DBMC rates.
    (2) Standard Mail packages, letter trays, or sacks on pallets.
    (3) Bound Printed Matter machinable parcels if ASF mail is entered 
at the ASF and claimed at DBMC rates.
    (4) Bound Printed Matter packages or sacks on pallets.
    (5) Parcel Post machinable parcels if ASF mail is entered at the 
ASF and claimed at DBMC rates.
* * * * *
    [Amend the title of L603 by adding ``Standard Mail'' to read as 
follows:]

L603  ADCs--Irregular Standard Mail Parcels

* * * * *
    [Amend to title of L604 to indicate that the list is used only for 
Standard Mail irregular parcels to read as follows:]

L604  Originating ADCs--Standard Mail Irregular Parcels

* * * * *

L800  Automation Rate Mailings

* * * * *
    [Amend the heading of L802 by changing ``Standard Mail (A)'' to 
``Standard Mail'' to read as follows:]

L802  BMC/ASF Entry--Periodicals and Standard Mail

* * * * *
    [Amend the heading of L803 by changing ``Standard Mail (A)'' to 
``Standard Mail'' to read as follows:]

L803  Non-BMC/ASF Entry--Periodicals and Standard Mail

* * * * *

M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS

1.1  Presort Process

    [Amend the third sentence of 1.1 by replacing ``Standard Mail (A)'' 
with ``Standard Mail''; no other changes to text.]
* * * * *

1.3  Preparation Instructions

    For purposes of preparing mail:
* * * * *
    [M013.13 was amended in the amended final rule published in 65 FR 
50054 (August 16, 2000). The section numbers in this proposed rule 
reflect those amendments.]
    [Redesignate 1.3f through 1.3z as 1.3h through 1.3ab respectively, 
add new 1.3f and 1.3g to read as follows:]
    For purposes of preparing mail:
* * * * *
    f. A less-than-full flat tray is one that contains First-Class Mail 
for the same destination regardless of quantity or whether a full tray 
was previously prepared for that destination. Less-than-full flat trays 
may be prepared only if permitted by the standards for the rate 
claimed.
    g. An overflow flat tray is a less-than-full First-Class Mail tray 
that contains all pieces remaining after preparation of one or more 
full trays for the same destination. Overflow flat trays may be 
prepared only if permitted by the standards for the rate claimed.
* * * * *
    [Amend redesignated 1.3j to provide for 5-digit/scheme carrier 
routes sortation for Carrier Route Bound Printed Matter, and to change 
``Standard Mail (A)'' to ``Standard Mail'' to read as follows:]
    j. A 5-digit/scheme carrier routes sort for carrier route rate 
Periodicals flats and irregular parcels, Enhanced Carrier Route rate 
Standard Mail flats, and Carrier Route Bound Printed Matter 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 carrier routes 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 required for carrier route 
packages of flat-size and irregular parcel Periodicals, is optional for 
flat-size Enhanced Carrier Route rate Standard Mail, and is optional 
for Carrier Route Bound Printed Matter flats 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 be performed 
only for carrier route packages prepared in sacks or as packages on 
pallets.
    [Amend redesignated 1.3k to provide for 5-digit/scheme sortation 
for Bound Printed Matter flats, and to change ``Standard Mail (A)'' to 
``Standard Mail'' to read as follows:]
    k. A 5-digit/scheme sort for Periodicals flats and irregular 
parcels, Standard Mail flats, and Bound Printed Matter flats prepared 
as packages on pallets yields 5-digit scheme pallets containing 
automation rate (not applicable to Bound Printed Matter) and Presorted 
rate 5-digit packages for those 5-digit ZIP Codes listed in L001 and 
yields 5-digit pallets containing automation rate (not applicable to 
Bound Printed Matter) and Presorted rate 5-digit packages for other 
areas. The 5-digit ZIP Codes in each scheme are treated as a single 
presort destination subject to a single minimum pallet

[[Page 52524]]

volume, with no further separation by 5-digit ZIP Code required. 
Pallets prepared for a 5-digit scheme destination that contain 5-digit 
packages for only one of the schemed 5-digit areas are still considered 
5-digit scheme sorted and are labeled accordingly. The 5-digit/scheme 
sort is required for flat-size and irregular parcel-size Periodicals, 
and is optional for flat-size Standard Mail and flat-size Bound Printed 
Matter that is prepared as packages on pallets and may not be used for 
other mail prepared on pallets, except for 5-digit packages of Standard 
Mail irregular parcels that are part of a mailing job that is prepared 
in part as palletized flats at automation rates. If preparation of 5-
digit scheme pallets is performed, it must be done for all 5-digit 
scheme destinations.
* * * * *
    [Amend the last sentence of 1.3p for clarity to read as follows:]
    * * * The 3-digit/scheme sort is required for automation rate 
letter-size First-Class Mail, Periodicals, and Standard Mail and is not 
permitted to be used for mail entered at another rate.
* * * * *
    [Amend 1.3z by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
    [Amend the first and last sentences of 1.3aa by replacing ``Parcel 
Post DSCF'' with ``Parcel Select (Parcel Post) DSCF)''; and by changing 
``M630'' to ``M710''; no other changes to text.]
    [Amend the first and second sentences of 1.3ab by replacing 
``Parcel Post DSCF'' with ``Parcel Select (Parcel Post) DSCF''; no 
other changes to text.]

1.4  Mailing

* * * * *
    [Amend 1.4e by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
    [Amend 1.4f by replacing ``Standard Mail (B)'' with ``Package 
Services'' and ``Special Standard'' with ``Media Mail''; no other 
changes in text.]
* * * * *

M012  Markings and Endorsements

1.0  MARKINGS--BASIC STANDARDS

1.1  Class and Rate

    [Amend 1.1b by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
    [Amend 1.1c by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
* * * * *
    [Revise the heading of 2.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other change.]
2.0  MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL

2.1  Placement

* * * * *
    [Amend 2.1b and c by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *

2.2  Exceptions to Markings

    [Amend 2.2a and 2.2b by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend the heading of 3.0 by replacing ``Standard Mail (B)'' with 
``Package Services Mail'' to read as follows:]
3.0  MARKINGS--PACKAGE SERVICES MAIL

3.1  Basic Markings

    [Amend 3.1 by changing the subclass name from ``Special Standard 
Mail'' to ``Media Mail'' and eliminating the ``Library Rate'' marking 
to read as follows:]
    The basic required Package Services subclass marking--``Parcel 
Post'' or ``PP,'' ``Bound Printed Matter'' or ``BPM,'' ``Media Mail,'' 
or ``Library Mail''--must be printed on each piece claimed at the 
respective rate. (The marking ``Library Rate'' may continue to be used 
on Library Mail until January 1, 2002. The marking ``Special Standard 
Mail'' (or ``SPEC STD'') may continue to be used on Media Mail until 
January 1, 2002.) For Parcel Post destination entry rate mail, the 
marking ``Parcel Select'' may be used as the basic required marking 
instead of ``Parcel Post.'' The basic required marking must be placed 
in the postage area (i.e., printed or produced as part of, or directly 
below or to the left of, the permit imprint indicia or meter stamp or 
impression).
    [Amend the heading of 3.2 for clarity to read as follows:]

3.2  Additional Parcel Select (Parcel Post) Markings

    [Amend the first sentence of 3.2 to read as follows:]
    Each piece in a Parcel Select (Parcel Post) mailing entered at a 
DBMC, DSCF, or DDU destination entry rate must bear a marking to 
indicate that it was mailed at a destination entry rate. * * *
    [Amend the heading of 3.3 by changing ``Other'' to ``Additional'' 
and revise to read as follows:]

3.3  Additional Bound Printed Matter Markings

    Each piece of Bound Printed Matter mailed at a Presorted rate must 
bear the marking ``Presorted'' (or ``PRSRT'') in addition to the basic 
marking in 3.1. Until January 1, 2002, mailers may use the marking 
``Presorted Standard'' (or ``PRSRT STD''). Each piece of Bound Printed 
Matter mailed at a Carrier Route rate must bear the marking ``Carrier 
Route Presort'' (or ``CAR-RT SORT'') in addition to the basic marking 
in 3.1. These additional markings may be placed in the postage area as 
specified in 3.1. Alternatively, these markings may be placed in the 
address area on the line directly above or two lines above the address 
if the marking appears alone, or if no other information appears on the 
line with the marking except postal optional endorsement line 
information under M013 or postal carrier route package information 
under M014.
    [Amend the heading of 3.4 to reflect the new subclass name to read 
as follows:]

3.4  Additional Media Mail Markings

    [Amend 3.4 to reflect the new subclass name to read as follows:]
    The required marking ``Presorted'' or ``PRSRT'' for Media Mail may 
be placed in the location specified in 3.1. Alternatively, it may be 
placed in the address area on the line directly above or two lines 
above the address provided that only the Media Mail marking appears on 
that line.
    [Amend the heading of 3.5 by changing ``Other'' to ``Additional'' 
to read as follows:]

3.5  Additional Library Mail Markings

* * * * *
4.0  ENDORSEMENTS--DELIVERY AND ANCILLARY SERVICES
* * * * *

4.5  OCR Read Area

    [Amend 4.5 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]

M013  Optional Endorsement Lines

1.0  USE

1.1  Basic Standards

    [Amend the chart in 1.1 by adding the sortation level and OEL 
example lines for Carrier Route Bound Printed Matter to read as 
follows:]

[[Page 52525]]



------------------------------------------------------------------------
       Sortation level                        OEL example
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
Carrier Route--Bound Printed   * * * * * * * * * * * CAR-RT SORT**C-001
 Matter.
 
*                  *                  *                  *
                   *                  *                 *
------------------------------------------------------------------------

* * * * *
2.0  FORMAT
* * * * *

2.5  ZIP Code

    [Amend 2.5 by removing the second sentence.]
    [Amend the table in 2.5 by revising the entries for ADC and mixed 
ADC sortation levels to read as follows:

----------------------------------------------------------------------------------------------------------------
           Sortation level                                Mail class                          Labeling list
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
ADC..................................  First-Class Mail (except automation letters),     L004
                                        Periodicals (except automation letters),
                                        Standard Mail (except Presorted rate irregular
                                        and machinable parcels), Presorted Bound
                                        Printed Matter (except machinable parcels).
                                       Standard Mail irregular parcels.................  L603
Mixed ADC............................  First-Class Mail (except automation letters)....  L002, Column C
                                       Periodicals (except automation letters),          L004
                                        Standard Mail (except Presorted rate irregular
                                        and machinable parcels), Presorted Bound
                                        Printed Matter (except machinable parcels).
                                       Standard Mail irregular parcels.................  L604
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

* * * * *

M014  Carrier Route Information Lines

* * * * *
2.0  FORMAT AND CONTENT
* * * * *

2.3  Route Code

* * * * *
    [Amend 2.3b by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *

M020  Packages and Bundles

1.0  BASIC STANDARDS
* * * * *

1.4  Palletization

    [Amend 1.4 by removing all references to bundles to read as 
follows:]
    Packages on pallets must be able to withstand normal transit and 
handling without breakage or injury to USPS employees. Heavy-gauge 
shrinkwrap over plastic banding, only shrinkwrap, or only banding 
material is acceptable if the package can stay together during normal 
processing. Except for packages of individually polywrapped pieces, 
packages on BMC pallets must be shrinkwrapped and machinable on BMC 
parcel sorters. Packages of individually polywrapped pieces may be 
secured with banding material only. Machinability is determined by the 
USPS. If used, banding material must be applied at least once around 
the length and once around the girth; wire and metal strapping are 
prohibited.
    [Redesignate 1.5 and 1.6 as 1.6 and 1.7 and add new 1.5 to read as 
follows:]

1.5  Package Size--Bound Printed Matter

    Each physical package of Presorted Bound Printed Matter must meet 
the minimum package size prescribed in M045 or M722. For Carrier Route 
Bound Printed matter prepared in sacks, the ``last physical package'' 
to an individual carrier route destination may contain less than the 
minimum package size and could consist of a single addressed piece, 
provided that all other packages to that carrier route destination meet 
the minimum package size and contain at least two addressed pieces, and 
that the total group of pieces to that carrier route meets the Carrier 
Route rate eligibility minimum in E712. Packages prepared on pallets 
must meet the packaging requirements under M045
    [Amend the heading and the introductory phrase of redesignated 1.6 
to read as follows:]

1.6  Package Size--Other Mail Classes

    For classes of mail other than Bound Printed Matter, an individual 
physical package may be prepared with fewer than the minimum number of 
pieces required by the standards for the rate claimed, without loss of 
rate eligibility under either of these conditions:
* * * * *
    [Amend heading of 2.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail'' to read as follows:]
2.0  ADDITIONAL STANDARDS--FIRST-CLASS MAIL, PERIODICALS, STANDARD 
MAIL, AND BOUND PRINTED MATTER FLATS

2.1  Cards and Letter-Size Pieces

    [Amend 2.1c and 2.1d by changing ``Standard Mail (A)'' to 
``Standard Mail.'']
* * * * *
    [Amend 2.2 by revising the second sentence to read as follows:]

2.2  Flat-Size Pieces

    * * * Flat-size pieces must be prepared in packages except under 
1.7. First-Class Mail automation flats prepared under the tray-based 
preparation option in M820.2.3 are not prepared in packages.
* * * * *
    [Amend the heading of 3.0 by adding ``All,'' and amend the opening 
text to read as follows:]
3.0  FACING SLIPS--ALL CARRIER ROUTE MAIL
    Facing slips used on any carrier route packages must show this 
information:
* * * * *

M030  Containers

M031  Labels

* * * * *

[[Page 52526]]

2.0  ADDITIONAL STANDARDS--SACK LABELS

2.1  Specifications

    [Amend 2.1a to reflect changes in mail class names to read as 
follows:]
    A sack label must meet these specifications:
    a. Color: white or manila for Priority Mail, First-Class Mail, 
Standard Mail and Package Services mail; pink for Periodicals.
* * * * *
3.0  ADDITIONAL STANDARDS--TRAY LABELS PLACEMENT
* * * * *

3.2  Specifications

    [Amend 3.2a to change ``Standard Mail (A)'' to ``Standard Mail'' to 
read as follows:]
    A tray label must meet these specifications:
    a. Color: White or manila for First-Class Mail and Standard Mail; 
pink for Periodicals.
* * * * *
4.0  PALLET LABELS
* * * * *

4.2  Specifications

    [Amend 4.2 to reflect changes in class names to read as follows:]
    Pallet labels must be pink for Periodicals mail or white for 
Standard Mail and Package Services. The pallet labels must measure at 
least 8 inches by 11 inches in size.
* * * * *
    [Amend the last sentence of 4.7 (as it appeared in the final rule 
published in 65 FR 50054 (August 16, 2000)) to add the word ``irregular 
parcel'' in front of ``Bound Printed Matter,'' and to change 
``processing category'' to ``''5D'' pallet level'' to read as follows:]

4.7  5-Digit, 5-Digit Carrier Routes, and 5-Digit Scheme Carrier 
Routes Pallets

    All 5-digit carrier routes or 5-digit scheme carrier routes pallets 
must show the words ``CARRIER ROUTES'' (or ``CR-RTS'') after the 
processing category description on the content line under M045, M920, 
M930, and M940. Five-digit pallets of irregular parcel Bound Printed 
Matter that contain only carrier route rate mail must also show the 
words ``CARRIER ROUTES'' (or ``CR-RTS'') after the ``5D'' pallet level 
description on the contents line under M045.
    [Amend 4.8 (as it appeared in the final rule published in 65 FR 
50054 (August 16, 2000)) by changing ``Standard Mail (A)'' to 
``Standard Mail'' to read as follows:]

4.8  Automation Status

    All Periodicals and Standard Mail 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, M920, M930, and M940. Except for machinable parcels, all 
Periodicals and Standard Mail 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, 
M920, M930, and M940. If a pallet contains copalletized automation rate 
and Presorted rate mail, the separate ``BARCODED'' and ``NONBARCODED'' 
designations may be abbreviated ``BC/NBC.''
    [The following section was revised as M031.4.10 in the final rule 
published in 65 FR 50054 (August 16, 2000). Subsequent revisions to the 
DMM have redesignated this section as 4.9.]

4.9  Extraneous Information

* * * * *
    [Amend 4.9c to reflect changes in class names to read as follows:]
    c. It does not appear on or between the lines reserved for USPS 
required information (blank lines are permitted). Exception: For 
combined mailings of Standard Mail and Package Services machinable 
parcels, mailer codes and extraneous information may appear between the 
content line and the post office of mailing line.
* * * * *
    [The following section was added as M031.4.13 in the final rule 
published in 65 FR 50054 (August 16, 2000). Subsequent revisions to the 
DMM have redesignated this section as 4.12. Amend the title of 4.12 to 
delete the phrase ``or Bundle'' to read as follows:]

4.12  Pallet Package Information

* * * * *
5.0  SECOND LINE CODES
    [Amend the chart in 5.0 to change ``Standard Mail (A)'' to 
``Standard Mail,'' add ``First Class Mail'' and code ``FCM,'' and add 
``Package Services'' and code ``PSVC'' 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
------------------------------------------------------------------------
Barcoded...............................  BC.
Barcoded and Nonbarcoded...............  BC/NBC.
Carrier Route..........................  C (type of route).
Carrier Routes.........................  CR-RTS (5-digit sack and pallet
                                          designation).
Digit..................................  D.
First-Class Mail.......................  FCM.
Flats..................................  FLTS.
General Delivery Unit..................  G.
Highway Contract Route.................  H.
Irregular Parcels......................  IRREG.
                                         (Periodicals, Standard Mail,
                                          and Package Services only).
Letters................................  LTRS.
Machinable Parcels.....................  MACH (Standard Mail and Package
                                          Services only).
Mixed..................................  MXD.
Mixed Machinable and Irregular Parcels.  MACH & IRREG (Standard Mail
                                          only).
Nonbarcoded............................  NON BC (sacks).
                                         NBC (pallets, and co-trayed or
                                          co-sacked mail under M910).
Package Services.......................  PSVC.
Parcels................................  PARCELS.
                                         (First-Class Mail and Package
                                          Services only).
Periodicals............................  PER (see 1.7).
                                         NEWS (see 1.7).
Post Office Box Section................  B.
Rural Route............................  R.

[[Page 52527]]

 
Scheme.................................  SCH.
                                         (Periodicals, Standard Mail,
                                          and (flats only) Bound Printed
                                          Matter 5-digit scheme carrier
                                          routes sacks and 5-digit
                                          scheme pallets only).
Standard Mail..........................  STD.
Working................................  WKG.
------------------------------------------------------------------------

M032  Barcoded Labels

1.0  BASIC STANDARDS--TRAY AND SACK LABELS

1.1  Use

    [Amend 1.1 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *
    [Amend Exhibit 1.3a, 3-Digit Content Identifier Numbers, by 
replacing headings ``STANDARD MAIL (A)'' with ``STANDARD MAIL,'' 
``STANDARD MAIL (B)'' with ``PACKAGE SERVICES,'' ``Special Standard 
Mail'' with ``Media Mail,'' and making other changes in content line 
information to read as follows:]

------------------------------------------------------------------------
                                                 Human-readable content
        Class and mailing              CIN                line
------------------------------------------------------------------------
 
      *         *         *         *         *         *         *
------------------------------------------------------------------------
          STANDARD MAIL
------------------------------------------------------------------------
      *         *         *         *         *         *         *
------------------------------------------------------------------------
Enhanced Carrier Route Irregular
 Parcels--Nonautomation
    car. rt. sacks--saturation..          599   STD IRREG WSS 1
    car. rt. sacks--high density          600   STD IRREG WSH 1
    car. rt. sacks--basic.......          601   STD IRREG LOT 1
    5-digit carrier routes sacks          598   STD IRREG CR-RTS
STD Irregular Parcels--Presorted
    5-digit sacks...............          590   STD IRREG 5D
    3-digit sacks...............          591   STD IRREG 3D
    ADC sacks...................          592   STD IRREG ADC
    mixed ADC sacks.............          594   STD IRREG WKG
STD Machinable Parcels--
 Presorted
    5-digit sacks...............          670   STD MACH 5D
    ASF sacks...................          672   STD MACH ASF
    BMC sacks...................          673   STD MACH BMC
    mixed BMC sacks.............          674   STD MACH WKG
STD Machinable and Irregular
 Parcels--Presorted
    5-digit sacks...............          603   STD MACH & IRREG 5D
------------------------------------------------------------------------
      PACKAGE SERVICES MAIL
------------------------------------------------------------------------
Carrier Route Bound Printed
 Matter--Flats
    carrier route sacks.........          657   PSVC FLTS CR 1
    5-digit scheme carrier                659   PSVC FLTS CR-RTS SCH
     routes sacks.
    5-digit carrier routes sacks          658   PSVC FLTS CR-RTS
Presorted Bound Printed Matter--
 Flats
    5-digit sacks...............          649   PSVC FLTS 5D NON BC
    3-digit sacks...............          650   PSVC FLTS 3D NON BC
    SCF sacks...................          654   PSVC FLTS SCF NON BC
    ADC sacks...................          651   PSVC FLTS ADC NON BC
    mixed ADC sacks.............          653   PSVC FLTS NON BC WKG
Carrier Route Bound Printed
 Matter--Irregular Parcels
    carrier route sacks.........          697   PSVC IRREG CR 1
    5-digit carrier routes sacks          698   PSVC IRREG CR-RTS
Presorted Bound Printed Matter--
 Irregular Parcels
    5-digit sacks...............          690   PSVC IRREG 5D
    3-digit sacks...............          691   PSVC IRREG 3D
    SCF sacks...................          696   PSVC IRREG SCF
    ADC sacks...................          692   PSVC IRREG ADC
    mixed ADC sacks.............          694   PSVC IRREG WKG
Presorted Bound Printed Matter--
 Machinable Parcels
    5-digit sacks...............          680   PSVC MACH 5D
    ASF sacks...................          682   PSVC MACH ASF
    BMC sacks...................          683   PSVC MACH BMC
    mixed BMC sacks.............          684   PSVC MACH WKG
Carrier Route Bound Printed
 Matter--Machinable Parcels
    carrier route sacks.........          687   PSVC MACH CR 1

[[Page 52528]]

 
Presorted Media Mail and
 Presorted Library Mail Flats--5-
 Digit and BMC
    5-digit sacks...............          649   PSVC FLTS 5D NON BC
    BMC sacks...................          652   PSVC FLTS BMC NON BC
Presorted Media Mail and
 Presorted Library Mail
 Irregular Parcels--5-Digit and
 BMC
    5-digit sacks...............          690   PSVC IRREG 5D
    BMC sacks...................          693   PSVC IRREG BMC
Presorted Media Mail and
 Presorted Library Mail
 Machinable Parcels--5-Digit and
 BMC
    5-digit sacks...............          680   PSVC MACH 5D
    BMC sacks...................          683   PSVC MACH BMC
Parcel Post Machinable Parcels
    5-digit sacks...............          680   PSVC MACH 5D
    ASF sacks...................          682   PSVC MACH ASF
    BMC sacks...................          683   PSVC MACH BMC
    mixed BMC sacks.............          684   PSVC MACH WKG
Parcel Post DSCF and DDU Rates
    5-digit sacks...............          688   PSVC PARCELS 5D
Combined PSVC Parcels
    5-digit sacks...............          688   PSVC PARCELS 5D
Combined STD & PSVC Machinable
 Parcels
    5-digit sacks...............          660   STD/PSVC MACH 5D
    ASF sacks...................          662   STD/PSVC MACH ASF
    BMC sacks...................          663   STD/PSVC MACH BMC
    mixed BMC sacks.............          664   STD/PSVC MACH WKG
------------------------------------------------------------------------

* * * * *
2.0 ADDITIONAL STANDARDS--BARCODED TRAY LABELS

2.1  Paper Stock, Size, and Color

    [Amend 2.1a to replace the class name ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
3.0 ADDITIONAL STANDARDS--BARCODED SACK LABELS
    [Amend 3.1a by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.
* * * * *

M033  Sacks and Trays

1.0  BASIC STANDARDS
* * * * *

1.2  Equipment

    [Amend 1.2a and 1.2f by replacing ``Standard Mail (A)'' with 
``Standard Mail''; and by no other changes to text and amend 1.2a by 
adding a second sentence to read as follows:]
    a. First-Class Mail flat-size pieces must be prepared in USPS flat 
trays with lids. The lids to these flat trays must be placed green side 
up.
    [Amend the heading of 2.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail'' to read as follows:]
2.0  FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL
* * * * *

2.2  Flat Tray Preparation (First-Class Mail Only)

    [Amend 2.2 by adding new f through h to read as follows:]
    All flat tray preparation is subject to these standards:
* * * * *
    f. For automation rate mailings prepared under the optional tray-
based preparation rules in M820, one less-than-full overflow tray may 
be prepared for a presort destination when the total number of pieces 
for that destination meets the minimum for preparation of the tray 
level under M820, and one or more full trays (see M011) for that 
destination are also prepared.
    g. For automation rate mailings prepared under the optional tray-
based preparation rules in M820, when the total number of pieces for a 
presort destination meets or exceeds the minimum number of pieces 
required to prepare a tray for that destination, but the total volume 
does not physically fill a single tray, the mail for that presort 
destination may be prepared in a less-than-full tray.
    h. Pieces prepared as automation flats under the tray-based 
preparation option in M820 do not have to be grouped by 3-digit ZIP 
Code prefix in ADC trays or by ADC in mixed ADC trays, if the mailing 
is prepared using an MLOCR/barcode sorter and standardized 
documentation is submitted.
* * * * *

M040  Pallets

M041  General Standards

* * * * *
    [M041.5.0 and 6.0 were amended in the amended final rule published 
in 65 FR 48385 (August 8, 2000) and in the final rule published in 65 
FR 50054 (August 16, 2000). The language in this proposed rule reflects 
those amendments.]
5.0  PREPARATION

5.1  Presort

    [Amend 5.1 to change the class name from ``Standard Mail (A)'' to 
``Standard Mail.'']

5.2  Required Preparation

    [Amend 5.2 to change the class name from ``Standard Mail (A)'' to 
``Standard Mail'' to read as follows:]
    These standards apply to:
    a. Periodicals, Standard Mail and Package Services (other than 
Parcel Post 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, Standard Mail, or Package Services mail in 
packages or sacks, or 500 pounds of parcels, or six layers of 
Periodicals or Standard Mail letter trays. For packages of Periodicals 
flats and irregular parcels on pallets that are prepared under the 
standards for package reallocation to protect the SCF pallet 
(M045.5.0), not all mail for a required 5-digit scheme carrier routes, 
5-digit scheme, 5-digit carrier routes, or 5-digit pallet or for an 
optional merged

[[Page 52529]]

5-digit scheme, optional merged 5-digit, or optional 3-digit pallet is 
required to be on that corresponding pallet level. For packages of 
Standard Mail flats on pallets that are prepared under the standards 
for package reallocation to protect the SCF pallet (M045.5.0), not all 
mail for a required 5-digit carrier routes or 5-digit pallet or for an 
optional 5-digit scheme carrier routes, merged 5-digit scheme, 5-digit 
scheme, merged 5-digit pallet, or 3-digit pallet is required to be on 
that corresponding pallet level. For packages of Standard Mail 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 ADC or mixed BMC 
pallets of sacks, trays, or machinable parcels, as appropriate, 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.
    b. Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU 
rates. Pallets must meet the requirements specifically prescribed for 
these rates in M045.

5.3  Minimum Load

    [Amend 5.3a by replacing ``Standard Mail (A)'' with ``Standard 
Mail'' and by changing ``M630'' to ``M710''; no other changes to text.]
* * * * *

5.6  Mail on Pallets

    [Amend 5.6 (as it appears in the final rule published in 65 FR 
50054 (August 16, 2000)) to provide for separation of flat-size Bound 
Printed Matter Carrier Route mail from Presorted mail on 5-digit level 
pallets, to change ``Standard Mail (A)'' to ``Standard Mail,'' to 
remove references to ``bundles,'' and to clarify and reorganize to read 
as follows:]
    These standards apply to mail on pallets:
    a. Pieces in trays, packages, and sacks must be prepared under the 
standards for the class of mail and rate claimed.
    b. When two or more Periodicals mailings, two or more Standard Mail 
mailings, or two or more Bound Printed Matter mailings are placed 
together on pallets, the mailer must keep records for each mailing as 
required by the standards for the class of mail.
    c. For Standard and Periodicals letter-size mail prepared in trays 
on pallets, carrier route rate mail (including automation carrier 
route) must be prepared on separate 5-digit pallets (5-digit carrier 
routes pallets) from non-carrier route automation rate or Presorted 
rate mail (5-digit pallets).
    d. Heavier, fuller trays must be placed at the bottom of the load.
    e. For Bound Printed Matter irregular parcels, Presorted and 
Carrier Route rate mail may be combined on all levels of pallet. For 
Bound Printed Matter flats, Presorted and Carrier Route rate mail may 
be combined on all levels of pallet except as provided in f and g.
    f. For sacks of nonletter-size Periodicals mail on pallets (except 
for mail prepared with detached address labels), for sacks of 
nonletter-size Standard Mail on pallets (except for mail prepared with 
detached address labels and machinable parcels), and for sacks of flat-
size Bound Printed Matter, carrier route rate mail must be prepared on 
separate 5-digit pallets (5-digit carrier routes pallets) from 
automation rate or Presorted rate mail (5-digit pallets).
    g. For packages on pallets of nonletter-size Periodicals, 
nonletter-size Standard Mail, and flat-size Bound Printed matter, 
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 is prepared under 5.6h, 
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.
    h. Mailers of nonletter-size Periodicals and flat-size Standard 
Mail that prepare packages 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 under 
the conditions in M920, M930, or M940.
* * * * *
6.0  COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE 
MAILPIECES
* * * * *
    [Amend the heading and contents of 6.4 to change the class name 
from ``Standard Mail (A)'' to ``Standard Mail.'']
* * * * *

M045  Palletized Mailings

1.0  BASIC USES
    [Amend 1.0f by replacing ``Standard Mail (A) and (B)'' with 
``Standard Mail and Package Services'' and 1.0i by replacing ``Standard 
Mail'' with ``Package Services mail'' and by replacing ``M630'' with 
``M700''; no other changes to text.]
    [Amend the heading of 2.0 to add ``ON PALLETS'' to read as 
follows:]
2.0  PACKAGES ON PALLETS
    [Revise 2.1 to read as follows:]

2.1  Applicability

    Only packages of flats and packages of irregular parcels of 
Periodicals, Standard Mail, and Bound Printed Matter may be prepared in 
packages placed directly on pallets under the provisions of 2.2 through 
2.5 and 3.0.
    [Redesignate current 2.2 through 2.4 as 2.3 through 2.5, 
respectively. Delete current 2.5 and 2.6. Insert new 2.2 to read as 
follows:]

2.2  Basic Packaging Standards

    Package preparation for Periodicals, Standard Mail and Bound 
Printed Matter must meet the general standards in M010, M020, and the 
applicable packaging provisions of M200, M610, M620, M720, and M820, 
except as noted in 2.3 through 2.5. Packages must be sorted to pallets 
under 3.0. The palletized portion of a mailing may not include packages 
sorted to mixed ADCs or foreign destinations.
    [Amend the heading of redesignated 2.3 by deleting ``Size''; no 
other changes to text, to read as follows:]

2.3  Periodicals

* * * * *
    [Amend the heading of redesignated 2.4 by deleting ``Size'' and 
replacing ``Standard Mail (A)'' with ``Standard Mail'' to read as 
follows:]

2.4  Standard Mail

* * * * *
    [Revise the heading and contents of redesignated 2.5 to read as 
follows:]

2.5  Bound Printed Matter

    a. Presorted Bound Printed Matter. Packages must be prepared to the 
package destinations in M722. Packages must be labeled using optional 
endorsement lines or pressure sensitive labels under M722. The Minimum 
package size is 10 addressed pieces or 10 pounds, whichever occurs 
first, except that the last package to a presort

[[Page 52530]]

destination may weigh less than 10 pounds. Maximum package size is 20 
pounds, except that 5-digit packages that will be placed on a 5-digit 
scheme or 5-digit pallet may weigh up to 40 pounds. The total number of 
physical packages for a single presort destination must not exceed the 
number of 10-pound increments to that destination.
    Each physical package must contain at least 2 addressed pieces. 
Irregular parcels that individually weigh more than 10 pounds and 
therefore cannot meet the requirement for a minimum of 2 pieces in each 
physical package must be prepared and palletized as machinable parcels 
under 3.5 or prepared in sacks under M722.
    b. Carrier Route Bound Printed Matter. Minimum package size is 10 
addressed pieces or 10 pounds to a carrier route, whichever occurs 
first, except that the last package to a carrier route destination may 
weigh less than 10 pounds. Maximum package size is 20 pounds, except 
that carrier route packages of flats that will be placed on a 5-digit 
scheme carrier routes or 5-digit carrier routes pallet, and carrier 
packages of irregular parcels that will be placed on a 5-digit pallet, 
may weigh up to 40 pounds. The total number of physical packages for a 
single carrier route destination must not exceed the number of 10-pound 
increments to that destination. Each physical package must contain at 
least 2 addressed pieces. Irregular parcels that individually weigh 
more than 10 pounds and therefore cannot meet the requirement for a 
minimum of 2 pieces in each physical package must either: (1) be 
prepared and palletized as machinable parcels under 3.5 and pay the 
Presorted rates, or (2) be prepared in sacks to qualify for the Carrier 
Route rates under M723. Packages must be labeled to the carrier route 
with facing slips under M723, optional endorsement lines under M013, or 
carrier route information lines under M014.
    [Remove 3.0; redesignate 4.0 through 15.0 as 3.0 through 14.0, 
respectively.]
3.0  PALLET PRESORT AND LABELING
    [The following section, Pallet Presort and Labeling, was originally 
revised as M045.4.0 in the final rule published in 65 FR 50054 (August 
16, 2000). The revisions below are revisions to the language in that 
final rule.]
* * * * *
    [Delete redesignated 3.3 pertaining to Bound Printed Matter 
(revised in the final rule published in 65 FR 50054 (August 16, 2000)). 
Redesignate 3.4 and 3.5 as 3.5 through 3.6. Add new 3.3 and 3.4 to read 
as follows:]

3.3  Bound Printed Matter Flats--Packages and Sacks on Pallets

    Mailers must prepare pallets in the sequence listed below. Mailers 
not opting to perform or not permitted to perform scheme sortation 
under 3.3a and 3.3b using L001 must begin preparing pallets under 3.3c. 
Pallets must be labeled according to the Line 1 and Line 2 information 
listed below and under M031.
    a. 5-Digit Scheme Carrier Routes. Optional. Permitted only for 
flat-size packages on pallets. May contain only carrier route rate 
packages 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 3.3c.
    (1) Line 1: Use L001, Column B.
    (2) Line 2: ``PSVC FLTS'' followed by ``CARRIER ROUTES `` or ``CR-
RTS'' and ``SCHEME'' or ``SCH.''
    b. 5-Digit Scheme. Optional. Permitted only for flat-size packages 
on pallets. May contain only Presorted rate packages 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 3.3d.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``PSVC FLTS 5D,'' followed by ``SCHEME'' or ``SCH.''
    c. 5-Digit Carrier Routes. Required for sacks and packages (except 
for packages prepared to 5-digit carrier route scheme pallets under 
3.3a). 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: ``PSVC FLTS,'' followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    d. 5-Digit. Required for sacks and packages (except for packages 
prepared to 5-digit scheme pallets under 3.3b). May contain only 
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: ``PSVC FLTS 5D.''
    e. 3-digit: optional. May contain Carrier Route and/or Presorted 
rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D.''
    f. SCF. Required. May contain Carrier Route and/or Presorted rate 
mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PSVC FLTS SCF.''
    g. ASF. Required. May contain Carrier Route and/or Presorted rate 
mail. Sort ADC packages or sacks to ASF pallets based on the label to 
ZIP Code for the ADC destination of the package or sack in L004. See 
E752 for additional requirements for DBMC rate eligibility.
    (1) Line 1: use L602.
    (2) Line 2: ``PSVC FLTS ASF.''
    h. Destination BMC: Required. May contain Carrier Route and/or 
Presorted rate mail. Sort ADC packages or sacks to BMC pallets based on 
the label to ZIP Code for the ADC destination of the package or sack in 
L004. See E752 for additional requirements for DBMC rate eligibility.
    (1) Line 1: use L601.
    (2) Line 2: ``PSVC FLTS BMC.''
    i. For sacks on pallets only, mixed BMC. Optional. May contain 
Carrier Route 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: ``PSVC FLTS'' as applicable, followed by ``WKG.''

3.4  Bound Printed Matter Irregular Parcels--Packages and 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. May contain Carrier Route 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: ``PSVC IRREG 5D'' and, if the pallet contains only 
carrier route mail, followed by ``CARRIER ROUTES'' (OR ``CR-RTS'').
    b. 3-digit. Optional. May contain Carrier Route and/or Presorted 
rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC IRREG 3D.''
    c. SCF. Required. May contain Carrier Route and/or Presorted rate 
mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PSVC IRREG SCF.''
    d. Destination ASF. Required. May contain carrier route rate and/or 
Presorted rate mail. Sort ADC packages or sacks to ASF pallets based on 
the label to ZIP Code for the ADC destination of the package or sack in 
L004.
    (1) Line 1: use L602.
    (2) Line 2: ``PSVC IRREG ASF.''
    e. Destination BMC. Required. May contain Carrier Route and/or 
Presorted rate mail. Sort ADC packages or sacks to BMC pallets based on 
the label to ZIP Code for the ADC destination of the package or sack in 
L004.
    (1) Line 1: use L601.
    (2) Line 2: ``PSVC IRREG BMC.''

[[Page 52531]]

    f. For sacks on pallets only, mixed BMC. Optional. May contain 
Carrier Route 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: ``PSVC IRREG'' as applicable, followed by ``WKG.''

3.5  Machinable Parcels--Standard Mail, 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 3.5 as an option. If Parcel 
Post is optionally sorted under 3.5 it must meet all the requirements 
of 3.5. 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 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 MACH 5D'' or ``PSVC MACH 5D'' as applicable.
    b. If DBMC rates are not claimed: Destination BMC. Required.
    (1) Line 1: use L601.
    (2) Line 2: ``STD MACH BMC'' or ``PSVC MACH BMC,'' as applicable.
    c. If DBMC rates are claimed: Destination ASF/BMC. Option 1: 
Mailers may opt to sort mail to ASFs using L602 only when the mail on 
the ASF pallet will be deposited at the ASF to claim the DBMC rate. 
After ASF pallets are prepared (mail need not be sorted to all ASFs) 
remaining mail must be sorted to BMCs using L601. Mail on BMC pallets 
deposited at the applicable BMC facility will be eligible for DBMC 
rates only if its 3-digit ZIP Code prefix is listed in Exhibit E650.5.1 
(Standard Mail) or Exhibit E751.1.3 (Parcel Post and Bound Printed 
Matter) for that entry BMC. Option 2: Mailers may sort mail only to 
BMCs using L601. Under option 2, only mail for 3-digit ZIP Codes served 
by a BMC listed in Exhibit E650.5.1 or Exhibit E751.1.3 are eligible 
for DBMC rates (i.e., mail for 3-digit ZIP Codes served by an ASF in 
Exhibit E650.5.1 or Exhibit E751.1.3 are not eligible for DBMC rates, 
nor are 3-digit ZIP Codes that do not appear on Exhibit E650.5.1 or 
Exhibit E751.1.3).
    (1) Line 1: Option 1: use L602 for ASF pallets; use L601 for BMC 
pallets. Option 2: use L601
    (2) Line 2: ``STD MACH'' or ``PSVC 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 MACH'' or ``PSVC MACH'' as applicable, followed 
by ``WKG.''
    [Amend 3.6 by changing ``Special Standard Mail'' to ``Media Mail''; 
no other changes to text.]
    [Amend the heading of redesignated 4.0 by adding ``To Protect SCF 
Pallet'' and by replacing ``Standard Mail (A)'' with ``Standard Mail'' 
to read as follows:]
4.0  PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS 
AND IRREGULAR PARCELS AND STANDARD MAIL FLATS ON PALLETS
* * * * *
    [The following section (M045.5.0) was originally added as M045.6.0 
in the amended final rule published in 65 FR 48385 (August 8, 2000). 
The revisions below are revisions to the language in that final rule.]
    [Amend the heading of redesignated 5.0 by replacing ``Standard Mail 
(A)'' with ``Standard Mail'' to read as follows:]
5.0  PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL FLATS 
ON PALLETS
* * * * *
6.0  PALLETS OF PACKAGES, BUNDLES, AND TRAYS OF LETTER-SIZE MAIL
* * * * *
    [Amend the heading of 6.2 to read as follows:]

6.2  Standard Mail

    [Amend 6.2 by replacing the class name ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *

6.4  Commingled Zones

    [Amend 6.4 by replacing ``Standard Mail (B)'' with ``Package 
Services mail,'' and by changing ``M630'' to ``M710 or M720'' to read 
as follows:]
    Pieces of Package Services mail for different zones may be 
commingled only under M710 or M720.
* * * * *
    [Amend the heading of 8.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail'' to read as follows:]
8.0  PALLETS OF COPALLETIZED PERIODICALS OR STANDARD MAIL FLAT-SIZE 
PIECES
* * * * *
    [Amend the heading of 8.3 by replacing ``Standard Mail (A)'' with 
``Standard Mail'' to read as follows:]

8.3  Standard Mail

    [Amend the first sentence of 8.3 to read as follows:]
    Additional standards apply to Standard Mail:* * *
* * * * *

8.5  Postage Statement

    [Amend 8.5b by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *
9.0  PALLETS OF MACHINABLE PARCELS
    [Amend the heading of 9.1 to remove the ``(A)'' to read as 
follows:]

9.1  Standard Mail

* * * * *
    [Revise the heading of 9.2 to read as follows:]

9.2  Package Services Mail

    [Amend 9.2 by changing ``M630'' to ``M710 and M720.'']
* * * * *
10.0  PARCEL POST--BULK MAIL CENTER (BMC) PRESORT DISCOUNT

10.1  Machinable Parcels

    [Amend 10.1c by replacing the label class designation ``STD B'' 
with ``PSVC'' to read as follows:]
    To qualify for the BMC Presort discount:
* * * * *
    c. Pallet box Line 2 labeling: ``PSVC MACH BMC.''

10.2  Nonmachinable Parcels

    [Amend 10.2c by replacing the label class designation ``STD B'' 
with ``PSVC'' to read as follows:]
* * * * *
    c. Pallet Line 2 labeling: ``PSVC NON MACH BMC'' or ``PSVC NON MACH 
ASF,'' as appropriate.

[[Page 52532]]

11.0  PARCEL POST--ORIGIN BULK MAIL CENTER (OBMC) PRESORT DISCOUNT

11.1  Machinable Parcels

    [Amend 11.1c by replacing the label class designation ``STD B'' 
with ``PSVC'' to read as follows:]
    To qualify for the OBMC Presort discount:
* * * * *
    c. Pallet box Line 2 labeling: ``PSVC MACH BMC.''

11.2  Nonmachinable Parcels

    [Amend 11.2c by replacing the label class designation ``STD B'' 
with ``PSVC'' to read as follows:]
    To qualify for the OBMC Presort discount:
* * * * *
    c. Pallet Line 2 labeling: ``PSVC NON MACH BMC'' or ``PSVC NON MACH 
ASF,'' as appropriate.
12.0  PARCEL POST DSCF RATES--PARCELS ON PALLETS

12.1  Basic Preparation, Parcels on Pallets

    [Amend the first sentence of 12.1 by changing ``M630'' to 
``M710.'']
* * * * *
    [Amend 12.1d(2) by replacing the label class designation ``STD B'' 
with ``PSVC'' and adding ``PARCELS'' to read as follows:]
* * * * *
    (2) For Line 2, use: ``PSVC PARCELS 5D.''
* * * * *
    [Amend 12.1e by changing ``M630'' to ``M710.'']

12.2  Alternate Preparation, Parcels on Pallets

    [Amend 12.2a by replacing ``M630'' with ``M710.'']
* * * * *
    [Amend 12.2c by replacing ``M630'' with M710.'']
    [Amend 12.2d(2) by replacing the label class designation ``STD B'' 
with ``PSVC'' and adding ``PARCELS'' to read as follows:]
* * * * *
    (2) For Line 2, use: ``PSVC PARCELS 5D.''
* * * * *

12.3  5-Digit ZIP Codes For Which Pallets May Not Be Prepared

    [Amend 12.3 by changing ``Exhibits E652.7.0 and E652.8.0'' to 
``Exhibits E751.7.0 and 751.8.0'' and by changing ``M630'' to 
``M710.'']

12.4  5-Digit ZIP Codes Requiring BMC Entry

    [Amend 12.4 by changing ``E652.6.0'' to ``E751.6.0.''
13.0  PARCEL POST DSCF RATES--SACKS ON PALLETS
    [Amend 13.0 by changing ``M630'' to ``M710.'']
    [Amend 13.0b by replacing the label class designation ``STD B'' 
with ``PSVC'' to read as follows:]
* * * * *
    b. Line 2: PSVC PP 5D SACKS.
14.0  PARCEL POST DDU RATES
    [Amend 14.0 by replacing ``STD B'' with ``PSVC'' and adding 
``PARCELS'' in the fourth sentence to read as follows:]
    * * * If pieces are sacked or palletized, they must be prepared to 
5-digits and labeled as follows: Line 1 labeling, use city, state, and 
5-digit ZIP Code destination; Line 2, use ``PSVC PARCELS 5D.'' * * *
* * * * *

M050  Delivery Sequence

* * * * *
4.0  DOCUMENTATION

4.1  General

    [Amend 4.1 by changing the class name ``Standard Mail (A)'' to 
``Standard Mail'' in the fifth sentence; no other changes to text.]

4.2  High Density

    [Amend 4.2a by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *

M070  Mixed Classes

M071  Basic Information

1.0  MARKINGS
    [Amend 1.1, and 1. 2 by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend 1.3 by replacing ``Standard Mail (A) Enclosed'' with 
``Standard Mail Enclosed'' and ``Standard Mail parcel'' with ``Standard 
Mail and Package Services parcel''; no other changes to text.]

M072  Express Mail and Priority Mail Drop Shipment

* * * * *
2.0  ADDITIONAL STANDARDS FOR ENCLOSED MAIL
* * * * *
    [Revise the heading and contents of 2.3 by changing ``Standard Mail 
(A)'' to ``Standard Mail.'']
    [Revise heading of 2.4 to ``Package Services Mail'' to read as 
follows:]

2.4  Package Services Mail

    [Amend 2.4 by changing ``P710, P720, or P730'' to ``P910, P920, or 
P930'' and by changing ``E652'' to ``E751.'']
* * * * *
    [Amend the heading of M073 to reflect the new class of mail names 
to read as follows:]

M073  Combined Mailings of Standard Mail and Package Services Parcels

1.0  COMBINED MACHINABLE PARCELS--RATES OTHER THAN PARCEL POST OBMC 
PRESORT, BMC PRESORT, DSCF, AND DDU
    [Amend 1.1 by replacing ``Standard Mail (A)'' with ``Standard 
Mail'' and by replacing ``Standard Mail (B)'' with ``Package Services 
mail''; no other changes to text.]
    [Amend 1.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail,'' by replacing ``Standard Mail (B)'' with ``Package Services 
mail,'' and by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; no other changes to text.]
* * * * *
    [Amend 1.4 and 1.5c by replacing ``Standard Mail (A)'' with 
``Standard Mail'' and by replacing ``Standard Mail (B)'' with ``Package 
Services mail''; no other changes to text.]
    [Amend 1.6a by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
    [Amend 1.6b by replacing ``STD A/B'' with ``STD/PSVC''; no other 
changes to text.]
2.0  COMBINED PARCELS--PARCEL POST OBMC PRESORT, BMC PRESORT, AND DSCF 
RATES

2.1  Qualification

    [Amend 2.1a, b, and c by replacing ``Standard Mail (A)'' with 
``Standard Mail,'' and by replacing ``Standard Mail (B)'' with 
``Package Services mail''; no other changes to text.]

2.2  Authorization

    [Amend 2.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail,'' and by replacing ``Standard Mail (B)'' with ``Package Services 
mail''; no other changes to text.]

2.3  Postage Payment

    [Amend 2.3 by replacing ``P710'' with ``P910.'']

[[Page 52533]]

2.4  Preparation and Rates

    [Amend 2.4 by replacing ``Standard Mail (A)'' with ``Standard 
Mail,'' and by replacing ``Standard Mail (B)'' with ``Package Services 
mail''; no other changes to text.]

2.5  Documentation

    [Amend 2.5 by replacing ``Standard Mail (A)'' with ``Standard 
Mail,'' and by replacing ``Standard Mail (B)'' with ``Package Services 
mail''; no other changes to text.]
* * * * *

M074  Plant Load Mailings

* * * * *
3.0  INTERSERVICE AREA PLANT-LOADED SHIPMENTS
* * * * *
    [Revise heading of 3.4 to reflect the new mail class names to read 
as follows:]

3.4  Standard Mail and Package Services

    [Amend 3.4 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
* * * * *
    [Amend 3.7c by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
* * * * *

M100  First-Class Mail (Nonautomation)

    [Add new headings M110 and 1.0 to read as follows:]

M110  Single-Piece First-Class Mail

1.0  PREPARATION
    [Redesignate E130.2.3 as M110.1.0; no changes in text.]
* * * * *

M600  Standard Mail

    [Amend the heading of M610 by removing ``(A)'' to read as follows:]

M610  Presorted Standard Mail

1.0  BASIC STANDARDS
* * * * *
    [Amend the heading and contents of 1.3 by replacing ``Standard Mail 
(A)'' with ``Standard Mail''; no other changes to text.]
* * * * *
4.0  FLAT-SIZE PIECES AND IRREGULAR PARCELS
* * * * *
    [Amend 4.6 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *
    [Delete 6.0 pertaining to preparation of bedloaded bundles of 
flats.]

M620  Enhanced Carrier Route Standard Mail

1.0  BASIC STANDARDS

1.1  All Mailings

    [Amend 1.1a by replacing ``E620'' with ``E630''.]
* * * * *
    [Revise the heading of 1.4 to read as follows:]

1.4  Exception

    [Amend 1.4 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''.]
* * * * *
5.0  RESIDUAL PIECES
    [Amend 5.0 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''.] changes to text.]
    [Delete 6.0 pertaining to preparation of bedloaded bundles of 
flats.]
    [Add new section M700 to read as follows:]

M700  Package Services

    [Redesignate M630.1.0 as M710 to read as follows:]

M710  Parcel Post

    [Add new heading 1.0 to read as follows:]
1.0  BASIC REQUIREMENTS
    [Add 1.1 to read as follows:]

1.1  General

    All mailings at Parcel Post rates are subject to these general 
standards:
    a. Each mailing must meet the applicable standards in E710, E711, 
E751, and M010 and M030.
    b. All pieces that are palletized must be prepared under M045, and 
if sacked, prepared under M710.
    c. There are no presort, sacking, or labeling standards for single-
piece rate Parcel Post.
    [Redesignate M630.1.1 as M710.1.2, no changes to text.]
    [Redesignate M630.1.2 as M710.1.3, amend to show DSCF and DDU rate 
mail need not be separated by zone, and amend for numbering revisions 
to read as follows:]

1.3  Separation

    Except for mail entered at DSCF or DDU rates (which are not zoned 
rates), Parcel Post pieces must be separated by zones when presented 
for acceptance unless either the correct postage is affixed to each 
piece or the mailing is prepared under 1.4, or presented under a 
special postage payment system under P910, P920, or P930. If DSCF sacks 
prepared under 2.2 are included in the same mailing as DSCF pallets 
prepared under M045.12.1e, at the time of acceptance the mailer must 
separate the sacks that are overflow from palletized mail from those 
sacks that were prepared under the provisions of 2.2.
    [Redesignate M630.8.0 as E710.1.4; amend to delete references to 
Bound Printed Matter, to read as follows:]

1.4  Commingled Zones

    Zoned Parcel Post pieces need not be separated by zones when 
presented other than as individual pieces or with full correct postage 
affixed to each piece, subject to this section. Nonidentical-weight 
pieces not bearing the full correct postage may not be commingled 
unless authorized by the RCSC manager serving the office of mailing. 
The mail must be prepared and documented:
    a. Under P910 or P930; or
    b. Under all these conditions:
    (1) The mail must be sacked or palletized.
    (2) A unique number is assigned to each sack/pallet in the mailing 
and printed on a separate line at the top of the sack/pallet label 
(above the Line 1 information).
    (3) A detailed list accompanies each mailing or mailing segment, 
sequenced numerically by the numbers assigned to sacks/pallets in the 
mailing, that shows the post office where the mail is to be entered 
(entry post office), a unique identifier for the mailing or mailing 
segment that also appears on the corresponding postage statement(s), 
the name and address of the mailer, the permit number (if applicable), 
the date of mailing, individual line entries for each sack/pallet, and 
the total number of pieces to each zone and in the entire mailing or 
mailing segment. Line entries for sacks/pallets containing mail for 
only one zone must show the sack/pallet number, the sortation level, 
the zone for which the mail is destined, and the total number of pieces 
for the sack/pallet. Entries for sacks/pallets containing mail for more 
than one zone must also show (by zone) the number of pieces to each 3-
digit ZIP Code area and the total number of pieces for that zone for 
the sack/pallet. Mailings are not accepted if there are discrepancies 
between the information in the detailed listing or on the postage 
statement and the results of USPS random verification of piece counts 
and postage.
* * * * *

[[Page 52534]]

    [Redesignate M630.1.3 as M710.1.5, and amend by changing references 
from ``P710, P720, or P730'' to ``P910, P920, or P930,'' and clarifying 
to read as follows:]

1.5  Documentation

    Parcel Post mailings must be documented as follows:
    a. Postage Statement. A complete, signed postage statement, using 
the correct USPS form or an approved facsimile, must accompany each 
bulk mailing (a mailing that includes pieces qualifying for rates that 
require a 50-piece minimum volume requirement).
    b. Other Documentation. When presented for acceptance, 
documentation of postage by entry office and presort level (e.g., by 
BMC for DBMC, OBMC Presort and BMC Presort mail and by 5-digit ZIP Code 
for DSCF and DDU rates) is required under P910, P920, or P930. Except 
for DSCF rate mail palletized under the alternate preparation option 
that requires separate documentation, documentation other than the 
postage statement is not required when the correct rate is affixed to 
each piece, or when each piece is of identical weight and the pieces 
are separated by zone and within each zone are grouped by pieces 
subject to the same combination of rates. DSCF rate mail palletized 
under the alternate preparation option in M045 must submit the detailed 
documentation required in M045.12.2.
    [Add 2.0 to read as follows:]
2.0  DSCF RATE

2.1  General

    [Redesignate contents of M630.1.4 as M710.2.1; amend by changing 
the reference ``1.5'' to ``2.2,'' by changing the reference ``Exhibit 
E652.6.0'' to ``Exhibit E751.6.0,'' and by changing the reference to 
``Exhibit E652.7.0 and Exhibit E652.8.0'' to ``Exhibit E751.7.0 and 
Exhibit E751.8.0''; no other changes to text.'']

2.2  DSCF Sack Preparation

    [Redesignate M630.1.5 as M710.2.2; amend redesignated 2.2d by 
replacing ``STD B 5D'' with ``PSVC PARCELS 5D''; no other change in 
text.]
3.0  DDU RATE
    [Redesignate M630.1.6 as M710.3.0; amend redesignated 3.0b by 
changing ``E652'' to ``E751''; amend redesignated 3.0d by changing 
``Exhibit E652.7.0 and Exhibit E652.8.0'' to ``Exhibit E751.7.0 and 
Exhibit E751.8.0''; amend redesignated 3.0e(2) by changing ``STD B 5D'' 
with ``PSVC PARCELS 5D,'' no other changes to text.
    [Add 4.0 to read as follows:]
4.0  OPTIONAL MACHINABLE PARCEL PREPARATION

4.1  Basic Standards

    Mailers may opt to prepare Parcel Post machinable parcels in sacks 
under 4.2 or palletized under M045. Pieces must be separated by zones 
when presented to the USPS unless either the correct postage is affixed 
to each piece or the mailing is prepared under 1.4. Pieces for more 
than one zone may not be placed in the same bundle or sack, and bundles 
and sacks must be separated by zone when presented to the USPS.

4.1  Sack Preparation

    Sack size, preparation sequence, and Line 1 labeling:
    a. 5-digit: required (minimum of 10 pieces/20 pounds, smaller 
volume not permitted); for Line 1, use 5-digit ZIP Code destination of 
pieces, preceded for military mail by the prefixes under M031.
    b. Destination ASF: optional; allowed only for mail deposited at an 
ASF to claim the DBMC rate (minimum of 10 pieces/20 pounds, smaller 
volume not permitted); for Line 1, use L602. Exhibit E751.1.3d 
determines DBMC rate eligibility.
    c. Destination BMC: required (minimum of 10 pieces/20 pounds, 
smaller volume not permitted); for Line 1, use L601. Exhibit E751.1.3d 
determines DBMC rate eligibility.
    d. Mixed BMC: required (no minimum); for Line 1, use ``MXD'' 
followed by the Column B information in L601 for the BMC serving the 3-
digit ZIP Code prefix of the entry post office.

4.3  Sack Line 2

    Line 2:
    a. 5-digit: ``PSVC MACH 5D.''
    b. ASF: ``PSVC MACH ASF.''
    c. Destination BMC: ``PSVC MACH BMC.''
    d. Mixed BMC: ``PSVC MACH WKG.''
    e. Any Line 2 processing code required by the labeling list must be 
right-justified.
* * * * *
    [Add new M720 to read as follows:]

M720  Bound Printed Matter

M721  Single Piece Rates

1.0  BASIC STANDARDS

1.1  General

    There are no presort, sacking or labeling standards for single-
piece rate Bound Printed Matter (BPM).

1.2  Markings

    Each piece mailed at single-piece BPM rates must be marked ``Bound 
Printed Matter'' (or ``BPM'') subject to M012.

M722  Presorted Bound Printed Matter

1.0  BASIC STANDARDS

1.1  General

    All mailings of Presorted Bound Printed Matter (BPM) are subject to 
the standards in 2.0 through 4.0 and to these general standards:
    a. Each mailing must meet the applicable standards in E710, E712, 
E752, and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A BPM irregular parcel is a piece that 
is neither a machinable parcel as defined in C050.4.1, or a flat as 
defined in C050.3.1. Irregular parcels are also pieces that meet the 
size and weight standards for a machinable parcel but are not 
individually boxed or packaged to withstand processing on BMC parcel 
sorters under C010.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. Subject to M012, pieces must be marked ``Bound Printed Matter'' 
(or ``BPM'') and ``Presorted'' (or ``PRSRT'').

1.2  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Documentation of 
postage is not required if the correct rate is affixed to each piece or 
if each piece is of identical weight and the pieces are separated by 
rate (zone) when presented for acceptance.

1.3  Separation

    Pieces for each zone must be sacked separately. When presented for 
verification, sacks must be separated by zone. Exception: Pieces for 
different zones may be sacked together and the sacks do not have to 
separated by zone for verification if any of the following apply:
    a. Full (exact) postage is affixed to each piece in the mailing.
    b. The mailing is prepared under P910, P930 or 1.4.
    c. The pieces are claimed at DSCF or DDU rates.

1.4  Commingling Zones

    Zone rated BPM need not be separated by zones when presented other 
than as individual pieces or with full correct postage affixed to each 
piece, subject to this section. Nonidentical-weight pieces not bearing 
the full correct postage may not be commingled unless authorized by the

[[Page 52535]]

RCSC manager serving the office of mailing. The mail must be prepared 
and documented:
    a. Under P910 or P930; or
    b. Under all these conditions:
    (1) A unique number is assigned to each pallet in the mailing and 
printed on a separate line at the top of the pallet label (above the 
Line 1 information).
    (2) A detailed list accompanies each mailing or mailing segment, 
sequenced numerically by the numbers assigned to the pallets in the 
mailing, that shows the post office where the mail is to be entered 
(entry post office), a unique identifier for the mailing or mailing 
segment that also appears on the corresponding postage statement, the 
name and address of the mailer, the permit number, the date of mailing, 
individual line entries for each pallet, and the total number of pieces 
to each zone in the entire mailing or mailing segment. Line entries for 
pallets containing mail for only one zone must show the pallet number, 
the sortation level, the zone for which the mail is destined, and the 
total number of pieces for the pallet. Entries for pallets containing 
mail for more than one zone must also show (by zone) the number of 
pieces to each 3-digit ZIP Code area and the total number of pieces for 
that zone for the pallet. Mailings are not accepted if there are 
discrepancies between the information in the detailed listing or on the 
postage statement and the results of USPS random verification of piece 
counts and postage.
2.0  REQUIRED PREPARATION-FLATS

2.1  Package Preparation

    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, or 10 
pounds, whichever occurs first. Smaller volumes not permitted except 
for mixed ADC packages. The maximum weight of each physical package is 
20 pounds, except that 5-digit packages placed in 5-digit sacks may 
weigh a maximum of 40 pounds each. Each package (except mixed ADC 
packages) must contain at least 2 addressed pieces. Packages must be 
prepared and labeled in the following required sequence:
    a. 5-digit: required; red Label D or optional endorsement line 
(OEL).
    b. 3-digit: required, green Label 3 or OEL.
    c. ADC: required, pink Label A or OEL.
    d. Mixed ADC: required; tan Label MXD or OEL.

2.2  Sack Preparation

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 20 addressed pieces, or 20 pounds, 
whichever occurs first. Smaller volumes not permitted (except mixed ADC 
sacks). Required preparation sequence and Line 1 sack labeling:
    a. 5-digit: required; for Line 1, use 5-digit ZIP Code destination 
of packages (for military mail, the ZIP Code is preceded by the 
prefixes under M031).
    b. 3-digit: required; for Line 1, use L002, Column A.
    c. SCF: optional; for Line 1, use L005, Column B.
    d. ADC: required; for Line 1, use L004, Column B.
    e. Mixed ADC: required; for Line 1, use ``MXD'' followed by the 
city/state/ZIP Code of the ADC serving the 3-digit ZIP Code of the 
entry post office, as shown in L004, Column B.

2.3  Sack Label Line 2

    Line 2 information:
    a. 5-digit: ``PSVC FLATS 5D NON BC.''
    b. 3-digit: ``PSVC FLATS 3D NON BC.''
    c. SCF: ``PSVC FLATS SCF NON BC.''
    d. ADC: ``PSVC FLATS ADC NON BC.''
    e. Mixed ADC: ``PSVC FLATS NON BC WKG.''
3.0  REQUIRED PREPARATION-IRREGULAR PARCELS WEIGHING 10 POUNDS OR LESS

3.1  Package Preparation

    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, or 10 
pounds, whichever occurs first. Smaller volumes not permitted except 
for mixed ADC packages. The maximum weight of each physical package is 
20 pounds, except that 5-digit packages placed in 5-digit sacks or 
prepared for and entered at DDU rates may weigh a maximum of 40 pounds 
each. Each physical package must contain at least 2 addressed pieces 
(except mixed ADC). Packages must be prepared and labeled in the 
following required sequence:
    (1) 5-digit: required; red Label D or optional endorsement line 
(OEL).
    (2) 3-digit: required; green Label 3 or OEL.
    (3) ADC: required; pink Label A or OEL.
    (4) Mixed ADC: required; (no minimum): tan Label MXD or OEL.

3.2  Sack Preparation

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 10 addressed pieces, or 20 pounds, 
whichever occurs first. Smaller volumes not permitted (except mixed ADC 
sacks). Required preparation sequence, and Line 1 labeling:
    a. 5-digit: required; for Line 1, use 5-digit ZIP Code destination 
of packages (for military mail, the ZIP Code is preceded by the 
prefixes under M031).
    b. 3-digit: required; for Line 1, use L002, Column A.
    c. SCF: optional; for Line 1, use L005, Column B.
    d. ADC: required; for Line 1, use L004, Column B.
    e. Mixed ADC: required (no minimum); for Line 1, use ``MXD'' 
followed by the city/state/ZIP Code of the ADC serving the 3-digit ZIP 
Code of the entry post office, as shown in L004, Column B.

3.3  Sack Label Line 2

    Line 2 information:
    a. 5-digit: ``PSVC IRREG 5D.''
    b. 3-digit: ``PSVC IRREG 3D.''
    c. SCF: ``PSVC IRREG SCF.''
    d. ADC: ``PSVC IRREG ADC.''
    e. Mixed ADC: ``PSVC IRREG WKG.''

3.4  Exception to Sacking

    Sacking is not required for 5-digit packages when prepared for and 
entered at DDU rates; such packages may be bedloaded and may weigh up 
to 40 pounds.
4.0  REQUIRED PREPARATION-IRREGULAR PARCELS WEIGHING OVER 10 POUNDS

4.1  Piece Preparation

    Packaging is not permitted for pieces weighing over 10 pounds 
except under 4.4. Each piece must be enclosed in an envelope, full-
length sleeve, full-length wrapper, or polybag.

4.2  Sack Preparation

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 10 addressed pieces, or 20 pounds, 
whichever occurs first. Smaller volumes not permitted (except mixed ADC 
sacks). Required preparation sequence, and Line 1 labeling:
    a. 5-digit: required; for Line 1, use 5-digit ZIP Code destination 
of packages (for military mail, the ZIP Code is preceded by the 
prefixes under M031).
    b. 3-digit: required; for Line 1, use L002, Column A.
    c. SCF: optional; for Line 1, use L005, Column B.
    d. ADC: required; for Line 1, use L004, Column B.
    e. Mixed ADC: required (no minimum); for Line 1, use ``MXD''

[[Page 52536]]

followed by the city/state/ZIP Code of the ADC serving the 3-digit ZIP 
Code of the entry post office, as shown in L004, Column B.

4.3  Sack Label Line 2

    Line 2 information:
    a. 5-digit: ``PSVC IRREG 5D.''
    b. 3-digit: ``PSVC IRREG 3D.''
    c. SCF: ``PSVC IRREG SCF.''
    d. ADC: ``PSVC IRREG ADC.''
    e. Mixed ADC: ``PSVC IRREG WKG.''

4.4  Exception to Sacking

    Pieces may be prepared only in 5-digit packages when entered at DDU 
rates; such packages may be bedloaded and may weigh up to 40 pounds.
5.0  REQUIRED PREPARATION-MACHINABLE PARCELS

5.1  Sack Preparation DBMC Rates Not Claimed

    A sack must be prepared when the quantity of parcels for a required 
presort destination reaches either 10 addressed pieces, or 20 pounds, 
whichever occurs first. Smaller volumes not permitted except in origin 
(mixed) BMC sacks. Required preparation sequence and Line 1 sack 
labeling:
    a. 5-digit: required; for Line 1, use 5-digit ZIP Code destination 
of parcels (for military mail, the ZIP Code is preceded by the prefixes 
under M031).
    b. BMC: required; for Line 1, use L601, Column B.
    c. Origin (mixed) BMC: required (no minimum); for Line 1, ``MXD'' 
followed by the information in L601, Column B, for the BMC serving the 
3-digit ZIP Code of the entry post office.

5.2  Sack Label Line 2 DBMC Rates Not Claimed

    Line 2 information:
    a. 5-digit: ``PSVC MACH 5D.''
    b. BMC: ``PSVC MACH BMC.''
    c. Mixed BMC: ``PSVC MACH WKG.''

5.3  Sack Preparation for DBMC Rates

    A sack must be prepared when the quantity of parcels for a required 
presort destination reaches either 10 addressed pieces, or 20 pounds, 
whichever occurs first. Smaller volumes not permitted except in origin 
(mixed) BMC sacks. See E752 for DBMC rate eligibility. Required 
preparation sequence and Line 1 sack labeling:
    a. 5-digit: required; for Line 1, use 5-digit ZIP Code destination 
of parcels (for military mail, the ZIP Code is preceded by the prefixes 
under M031).
    b. Destination ASF: optional; allowed only for mail deposited at an 
ASF to claim DBMC rate; for Line 1, use L602. DBMC rate eligibility is 
determined by E752 and Exhibit E751.5.0.
    c. Destination BMC: required; for Line 1, use L601, Column B. DBMC 
rate eligibility is determined by E752 and Exhibit E751.5.0.
    d. Origin (mixed) BMC: required (no minimum); for Line 1, ``MXD'' 
followed by the information in L601, Column B, for the BMC serving the 
3-digit ZIP Code of the entry post office.

5.4  Sack Label Line 2 for DBMC Rates

    Line 2 information:
    a. 5-digit: ``PSVC MACH 5D.''
    b. ASF: ``PSVC MACH ASF.''
    c. BMC: ``PSVC MACH BMC.''
    d. Mixed BMC: ``PSVC MACH WKG.''

M723  Carrier Route Bound Printed Matter

1.0  BASIC STANDARDS

1.1  General

    All mailings of Carrier Route Bound Printed Matter (BPM) are 
subject to the standards in 2.0 through 4.0 and to these general 
standards:
    a. Each mailing must meet the applicable standards in E710, E712, 
E752, and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A BPM irregular parcel is a piece that 
is neither a machinable parcel as defined in C050.4.1, or a flat as 
defined in C050.3.1. Irregular parcels are also pieces that meet the 
size and weight standards for a machinable parcel but are not 
individually boxed or packaged to withstand processing on BMC parcel 
sorters under C010.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. Subject to M012, pieces must be marked ``Bound Printed Matter'' 
(or ``BPM''), and ``Carrier Route Presort'' (or ``CAR-RT SORT'').

1.2  Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing. Documentation of 
postage is not required if the correct rate is affixed to each piece or 
if each piece is of identical weight and the pieces are separated by 
rate (zone) when presented for acceptance.

1.3  Separation

    Pieces for each zone must be sacked separately. When presented for 
verification, sacks must be separated by zone. Exception: Pieces for 
different zones may be sacked together and the sacks do not have to 
separated for verification if any of the following apply:
    a. Full postage is affixed to each piece in the mailing.
    b. The mailing is prepared under P910, P930 or 1.4.
    c. The pieces are claimed at DSCF or DDU rates.

1.4  Commingling Zones

    Zone rated BPM need not be separated by zones when presented other 
than as individual pieces or with full correct postage affixed to each 
piece, subject to this section. Nonidentical-weight pieces not bearing 
the full correct postage may not be commingled unless authorized by the 
RCSC manager serving the office of mailing. The mail must be prepared 
and documented:
    a. Under P910 or P930; or
    b. Under all these conditions:
    (1) A unique number is assigned to each pallet in the mailing and 
printed on a separate line at the top of the pallet label (above the 
Line 1 information).
    (2) A detailed list accompanies each mailing or mailing segment, 
sequenced numerically by the numbers assigned to the pallets in the 
mailing, that shows the post office where the mail is to be entered 
(entry post office), a unique identifier for the mailing or mailing 
segment that also appears on the corresponding postage statement, the 
name and address of the mailer, the permit number (if applicable), the 
date of mailing, individual line entries for each pallet, and the total 
number of pieces to each zone and in the entire mailing or mailing 
segment. Line entries for pallets containing mail for only one zone 
must show the pallet number, the sortation level, the zone for which 
the mail is destined, and the total number of pieces for the pallet. 
Entries for pallets containing mail for more than one zone must also 
show (by zone) the number of pieces to each 3-digit ZIP Code area and 
the total number of pieces for that zone for the pallet. Mailings are 
not accepted if there are discrepancies between the information in the 
detailed listing or on the postage statement and the results of USPS 
random verification of piece counts and postage.

1.5  Residual Pieces

    Residual pieces not sorted under 2.0, 3.0, or 4.0, may be prepared 
as a Presorted Bound Printed Matter mailing under M722 provided that 
they are that are part of the same mailing job and reported on the same 
postage statement. Pieces at the Presorted rate do not need to meet a 
separate 300 piece minimum. These pieces must be separated from the 
qualifying carrier route portion when presented to the USPS for 
verification.

[[Page 52537]]

Presorted flats are not eligible for DDU rates.
2.0  REQUIRED PREPARATION--FLATS

2.1  Package Preparation

    A carrier route package (or packages) must be prepared when there 
are 10 or more addressed pieces or 10 or more pounds, whichever occurs 
first, for an individual carrier route. Smaller volumes are not 
permitted to be prepared in carrier route packages. The maximum weight 
of each physical package is 40 pounds. Each package must contain at 
least 2 addressed pieces except for the last package for each carrier 
route destination under M020. Packages must be labeled with a facing 
slip unless the package is labeled using a carrier route information 
line (M014) or an optional endorsement line (M013).

2.2  Sack Preparation

    A carrier route sack must be prepared when the quantity of mail for 
an individual carrier route reaches a minimum of 20 addressed pieces, 
or 20 pounds, whichever occurs first. Smaller volumes must not be 
prepared in a direct carrier route sack. Mail that cannot be prepared 
in a direct carrier route sack may be placed in a 5-digit scheme 
carrier routes sack and/or a 5-digit carrier routes sack. Preparation 
sequence and Line 1 sack labeling:
    a. Carrier route: required; for Line 1, use 5-digit ZIP Code 
destination of packages (for military mail, the ZIP Code is preceded by 
the prefixes under M031).
    b. 5-digit scheme carrier routes: optional (no minimum); for Line 
1, use L001, Column B.
    c. 5-digit carrier routes: required (no minimum); for Line 1, use 
5-digit ZIP Code destination of packages, (for military mail, the ZIP 
Code is preceded by the prefixes under M031).

2.3  Sack Label Line 2

    Line 2 information:
    a. Carrier route: ``PSVC FLATS CR,'' followed by the route type and 
number.
    b. 5-digit scheme carrier routes: ``PSVC FLATS CR-RTS SCH.''
    c. 5-digit carrier routes: ``PSVC FLATS CR-RTS.''

2.4  Exception to Sacking

    Sacking is not required for packages when prepared for and entered 
at DDU rates; such packages may be bedloaded and may weigh up to 40 
pounds.
3.0  REQUIRED PREPARATION--IRREGULAR PARCELS WEIGHING 10 POUNDS OR LESS

3.1  Package Preparation

    No packaging is required in direct carrier route sacks. Otherwise, 
a carrier route package (or packages) must be prepared when the 
quantity of addressed pieces for a carrier route reaches a minimum of 
10 pieces, or 20 pounds, whichever occurs first. Smaller volumes are 
not permitted to be prepared in carrier route packages except for the 
last package for each carrier route destination under M020. The maximum 
weight of each physical package is 40 pounds. Each package must contain 
at least 2 addressed pieces. Packages must be labeled with a facing 
slip unless the package is labeled using a carrier route information 
line (M014) or an optional endorsement line (M013).

3.2  Sack Preparation

    A direct carrier route sack must be prepared when the quantity of 
mail for an individual carrier route reaches a minimum of 10 addressed 
pieces, or 20 pounds, whichever occurs first. Smaller volumes permitted 
in 5-digit carrier routes sacks. Required preparation sequence and Line 
1 labeling:
    a. Carrier route: required; for Line 1, use 5-digit ZIP Code 
destination of packages (for military mail, the ZIP Code is preceded by 
the prefixes under M031).
    b. 5-digit carrier routes: required; for Line 1, use 5-digit ZIP 
Code destination of packages (for military mail, the ZIP Code is 
preceded by the prefixes under M031).

3.3  Sack Label Line 2

    Line 2 information:
    a. Carrier route: ``PSVC IRREG CR,'' followed by the route type and 
number.
    b. 5-digit carrier routes: ``PSVC IRREG CR-RTS.''

3.4  Exception to Sacking

    Sacking is not required for packages when prepared for and entered 
at DDU rates; such packages may be bedloaded and may weigh up to 40 
pounds.
4.0  REQUIRED PREPARATION--IRREGULAR PARCELS WEIGHING OVER 10 POUNDS

4.1  Carrier Route Sack Preparation

    Irregular parcels must be prepared only in direct carrier route 
sacks. Each carrier route sack must contain a minimum of 20 pounds. 
Smaller volumes not permitted. Required preparation:
    a. Line 1 labeling: Use 5-digit ZIP Code destination of the pieces.
    b. Line 2 information: ``PSVC IRREG CR,'' followed by the route 
type and number.
5.0  REQUIRED PREPARATION--MACHINABLE PARCELS

5.1  Carrier Route Sack Preparation

    Machinable parcels may be prepared only in direct carrier route 
sacks. Each carrier route sack must contain a minimum of 10 addressed 
pieces, or 20 pounds, whichever occurs first. Smaller volumes not 
permitted. Required preparation:
    a. Line 1 labeling: Use 5-digit ZIP Code destination of the pieces.
    b. Line 2 information: ``PSVC MACH CR,'' followed by the route type 
and number.
* * * * *
    [Add new heading M730 to read as follows:]

M730  Media Mail

    [Add heading 1.0 to read as follows:]
1.0  BASIC STANDARDS
    [Redesignate M630.4.1 through M630.4.3 as M730.1.1 through M730.1.3 
respectively.]
    [Amend the heading of redesignated 1.1 to read as follows:]

1.1  General

    [Revise redesignated 1.1 to read as follows:]
    There are no preparation standards for single-piece Media Mail. 
Presorted Media Mail must be prepared under 2.0 unless prepared on 
pallets under M045, or as outside parcels under E713. Mailings of 
nonmachinable (outside) parcels eligible for presort rates must be 
prepared to preserve the required presort as instructed by the mailing 
office postmaster.

1.2  Marking

    [Amend redesignated 1.2 by ``Special Standard Mail'' with ``Media 
Mail'' and ``SPEC STD'' with ``Media Mail''; no other changes to text.]
* * * * *
    [Add new heading 2.0 to read as follows:]
2.0  PREPARATION
    [Redesignate M630.4.4 through M630.4.6 as M730.2.1 through 
M730.2.3, respectively.]
    [Amend the heading of redesignated 2.1 to read as follows:]

2.1  Sack or Package on Pallet Preparation (5-Digit Rate)

    [Amend 2.1 to read as follows:]
    5-digit sack or package size (for packages on pallets) and 
labeling: 5-

[[Page 52538]]

digit (only); required (minimum of eight pieces/20 pounds, smaller 
volume not permitted); 20-pound maximum for packages on pallets; no 
label required on packages; on sacks, use 5-digit ZIP Code destination 
of pieces for Line 1, preceded for military mail by the prefixes under 
M031.

2.2  Sack Preparation (BMC Rate)

    [Amend redesignated M730.2.2 by removing ``/1,000 cubic inches''.]

2.3  Sack Line 2

    [Amend redesignated M730.2.3a and b by replacing ``STD'' and ``STD 
B'' with ``PSVC''; no other changes to text.]
* * * * *
    [Add new heading M740 to read as follows:]

M740  Library Mail

    [Add heading 1.0 to read as follows:]
1.0  BASIC STANDARDS
    [Redesignate M630.5.1 through M630.5.3 as M7401.1 through M74.1.3, 
respectively.

1.1  General

    [Amend redesignated M740.1.1 by replacing ``E630.5.0'' with 
``E714''; no other changes to text.]

1.2  Marking

    [Amend redesignated 1.2 to eliminate ``Library Rate'' as optional 
marking in the first sentence and delete the last sentence to read as 
follows:]
    Each piece claimed at Library Mail rates must be marked ``Library 
Mail'' under M012. Each piece claimed at presorted Library Mail rates 
also must be marked ``Presorted'' or ``PRSRT'' under M012.
* * * * *
    [Add new heading 2.0 to read as follows:]
2.0  PREPARATION
    [Redesignate M630.5.4 through M630.5.6 as M740.2.1 through 
M740.2.3, respectively.]

2.1  Sack Preparation (5-Digit Rate)

    [Amend redesignated 2.1 by removing ``/1,000 cubic inches''.]

2.2  Sack Preparation (BMC Rate)

    [Amend redesignated 2.2 by removing ``/1,000 cubic inches''.]

2.3  Sack Line 2

    [Amend redesignated M740.2.3 a and M740.2.3b by replacing ``STD'' 
and ``STD B'' with ``PSVC''; no other changes to text.]
* * * * *

M800  All Automation Mail

* * * * *

M820  Flat-Size Mail

1.0  BASIC STANDARDS
* * * * *

1.2  Mailings

    [Amend 1.2 by revising the second and third sentences to read as 
follows:]
    * * * First-Class Mail and Periodical mailings may include pieces 
prepared at automation 5-digit, 3-digit and basic rates, as applicable. 
Standard Mail mailings may include pieces prepared at automation 3/5 
and basic rates. * * *
* * * * *

1.5  Package Preparation

    [Amend the first sentence of 1.5 by adding exception to read as 
follows; and amend the fourth sentence by replacing the ``3.1 or 4.1'' 
with ``4.1 or 5.1'':]
    Except for First-Class Mail prepared under 3.0, all pieces must be 
prepared in packages. * * *
* * * * *
    [Add new 1.11 to read as follows:]

1.11  Tray-Based Preparation

    For First-Class Mail prepared under the tray-based option in 3.0, 
mailers may not combine FSM 881 and FSM 1000 pieces in the same 
mailing.
* * * * *
    [Revise 2.0 heading to read as follows:]
2.0  FIRST-CLASS MAIL--REQUIRED PACKAGE-BASED PREPARATION
    [Amend 2.1a to make preparation of 5-digit packages optional to 
read as follows:]

2.1  Package Preparation

    Package size, preparation sequence, and labeling:
    a. 5-digit: optional, but required for 5-digit rate eligibility 
(10-piece minimum, fewer not permitted); red Label D or optional 
endorsement line (OEL).
* * * * *
    [Amend 2.2a to make preparation of 5-digit trays optional and to 
change ``M031'' to ``M032'' to read as follows:]

2.2  Tray Preparation

    Tray size, preparation sequence, and Line 1 labeling:
    a. 5-digit: optional, but required for 5-digit rate eligibility, 
full trays, no overflow; for Line 1, use 5-digit ZIP Code destination 
of packages, preceded for military mail by the prefixes under M032.
* * * * *
    [Redesignate current 3.0 and 4.0 as 4.0 and 5.0, respectively, and 
add new 3.0 to read as follows:]
3.0  FIRST-CLASS MAIL--OPTIONAL TRAY-BASED PREPARATION
    Tray size, preparation sequence and Line 1 labeling:
    a. 5-digit: optional, but 5-digit trays required for rate 
eligibility (90-piece minimum, fewer not permitted); one less-than-full 
or overflow tray allowed; for Line 1, for 5-digit trays, use 5-digit 
ZIP Code destination of pieces, preceded for military mail by the 
prefixes under M031. (Preparation to qualify for 5-digit rate is 
optional and need not be done for all 5-digit destinations.)
    b. 3-digit: required (90-piece minimum, fewer not permitted); one 
less-than-full or overflow tray allowed; for Line 1 use L002, Column A 
for 3-digit destinations.
    c. Origin 3-digit: required for each 3-digit ZIP Code served by the 
SCF of the origin (verification) office; no minimum; for Line 1 use 
L002, Column A for 3-digit destinations.
    d. ADC: required: (90-piece minimum, fewer not permitted); one 
less-than-full or overflow tray allowed; group pieces by 3-digit ZIP 
Code prefix; for Line 1 use L004, (ZIP Code prefixes in Column A must 
be combined and labeled to the corresponding ADC destination shown in 
Column B) As an exception, pieces do not have to be grouped by 3-digit 
ZIP Code prefix in ADC trays, if the mailing is prepared using a MLOCR/
barcode sorter and standardized documentation is submitted.
    e. Mixed ADC: required (no minimum for rate eligibility); group 
pieces by ADC; for Line 1, use ``MXD'' followed by the city/state/ZIP 
of the facility serving the 3-digit ZIP Code of the entry post office, 
as shown in L002, Column C. As an exception, pieces do not have to be 
grouped by ADCs in mixed ADC trays, if the mailing is prepared using a 
MLOCR/barcode sorter and standardized documentation is submitted.
* * * * *

M900  Advanced Preparation Options

M910  Co-Traying and Co-Sacking of Automation Rate and Presorted Rate 
Mailings of Flat-Size Mail

1.0  FIRST-CLASS MAIL
* * * * *

1.2  Package Preparation

    [Amend 1.2 by changing ``M820'' to ``M820.2.1'' to read as 
follows:]
    The automation rate mailing must be packaged and labeled under M820 
2.1.

[[Page 52539]]

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

P000  Postage and Payment Methods

P010  General Standards

P011  Payment

1.0  PREPAYMENT AND POSTAGE DUE

1.1  Prepayment Conditions

    [Amend 1.1 by redesignating 1.1b through 1.1e as 1.1c through 1.1f, 
respectively. Add new item 1.1b to read as follows:]
    The mailer is responsible for proper payment of postage. Postage on 
all mail must be fully prepaid at the time of mailing, except as 
specifically provided by standard for:
* * * * *
    b. Merchandise return service (S923).
* * * * *
3.0  COLLECTION OF POSTAGE DUE
* * * * *
    [Add new 3.3 and 3.4 to clarify standards for advance deposit 
accounts and annual accounting fees to read as follows:]

3.3  Advance Deposit Account

    Mailers may choose to establish an advance deposit account(s) from 
which postage, per-piece charges, and other fees are deducted. For 
certain special services, an advance deposit account is required. 
Except for business reply mail, which requires a separate account, 
mailers may use a single advance deposit account to pay postage due 
charges for more than one special service (e.g., merchandise return 
service and bulk parcel return service).

3.4  Annual Accounting Fee

    Except for accounts used solely to pay postage due for shortpaid 
mail, address correction notices, and undeliverable-as-addressed pieces 
returned to sender (e.g., return service requested), mailers must pay a 
separate annual accounting fee for each special service paid through an 
advance deposit account. This fee covers the administrative cost of 
maintaining the account and provides the mailer with the accounting of 
all charges deducted from that account. The accounting fee is charged 
once each 12-month period on the anniversary date of the initial 
accounting fee payment. The fee may be paid in advance only for the 
next year and only during the last 30 days of the current service 
period. The fee charged is that which is in effect on the date of 
payment.
* * * * *

P012  Documentation

* * * * *
    [Amend the heading of 2.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail'' to read as follows:]
2.0  STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, AND 
STANDARD MAIL

2.1  Basic Standard

    [Amend 2.1 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]

2.2  Format and Content

    [Amend 2.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; and add new 2.2c(3)(c) and amend 2.2c(6) by adding second 
sentence to read as follows:]
* * * * *
    c. For mail in trays or sacks, the body of the listing reporting 
these required elements:
* * * * *
    (3) * * * ; or (c) group destination for automation flats prepared 
under the tray-based option for each 3-digit in ADC trays and for each 
ADC in mixed ADC trays.
* * * * *
    (6) * * * The tray identification number is optional for tray-based 
automation flats.
* * * * *

2.3  Rate Level Column Headings

* * * * *
    [Amend 2.3 by replacing all references to ``Standard Mail (A)'' 
with ``Standard Mail'' and by revising 2.3a to provide for separate 5-
digit and 3-digit rates for automation First-Class flats to read as 
follows:]
    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 2.2 and shown below:
    a. Automation First-Class Mail, Periodicals, and Standard Mail:

------------------------------------------------------------------------
                  Rate                             Abbreviation
------------------------------------------------------------------------
 
   *          *          *          *          *          *          *
5-Digit [First-Class Mail letters/cards  5B
 and flats, Periodicals letters and
 flats and Standard Mail letters].
3-Digit [First-Class Mail letters/cards  3B
 and flats, Periodicals letters and
 flats and Standard Mail letters].
 
   *          *          *          *          *          *          *
3/5 [Standard Mail flats]..............  3/5 B
 
   *          *          *          *          *          *          *
------------------------------------------------------------------------

* * * * *

P013  Rate Application and Computation

1.0  BASIC STANDARDS
* * * * *
    [Amend 1.3 by replacing ``Special Standard Mail'' with ``Media 
Mail''; no other changes to text.]

1.4  Affixing Postage--Single-Piece Rate Mailings

    [Amend 1.4 by replacing ``Standard Mail (B)'' with ``Package 
Services and amend the first sentence to read as follows:]
    In a postage-affixed Express Mail, Priority Mail, single-piece 
First-Class Mail, or Package Services mailing, the mailer must affix to 
each piece a value in adhesive stamps or meter stamps equal to at least 
the postage required. A mailer may also use precanceled stamps on 
single-piece First-Class Mail. Less than the correct amount of postage 
may be affixed only when permitted by standard or specific USPS 
authorization.

1.5  Affixing Postage--Other Than Single-Piece Rate Mailings

    [Amend 1.5 by replacing ``Standard Mail'' with ``Standard Mail and 
``Package Services, and amend the introductory paragraph to read as 
follows:]

[[Page 52540]]

    In a First-Class Mail postage affixed mailing other than single-
piece or a Standard Mail presorted mailing, the mailer must affix to 
each piece a value in precanceled stamps or meter impressions that 
equals at least the full amount of postage at the applicable rate. In a 
Package Services postage affixed mailing other than single-piece 
mailing, the mailer must affix to each piece a value in meter 
impressions that equals at least the full amount of postage at the 
applicable rate; or
    a. For First-Class Mail, the applicable postage at the lowest rate 
claimed in the mailing (or a lesser amount if authorized under P760) if 
all additional postage is paid at the time of mailing.
    b. For Standard Mail, the minimum per piece charge, with the pound 
rate charge paid with permit imprint under the applicable standards; or 
the applicable postage at the lowest rate claimed in the mailing (or a 
lesser amount if authorized under P760) if all additional postage is 
paid at the time of mailing.
* * * * *
2.0  RATE APPLICATION--EXPRESS MAIL, FIRST-CLASS MAIL, AND PRIORITY 
MAIL
* * * * *

2.4  Priority Mail

    [Amend 2.4 by revising the third sentence to read as follows:]
    * * * The minimum postage amount per addressed piece is that for a 
piece weighing 1 pound. * * *
* * * * *
    [Amend 2.6 by revising the second sentence to read as follows:]

2.6  Keys and Identification Devices

     * * * Keys and identification devices weighing more than 
13 ounces but not more than 1 pound are mailed at the 1-pound Priority 
Mail rate plus the fee in R100.9.0; keys and identification devices 
weighing over 1 pound but not more than 2 pounds are mailed at the 2-
pound rate plus the fee in R100.9.0.
3.0  RATE APPLICATION--PERIODICALS
* * * * *

3.2  Applying Pound Rate

    [Amend 3.2 by replacing ``Regular and Preferred outside-county'' 
with ``Outside-County and Science-of-Agriculture Outside-County'' in 
the second sentence to read as follows:]
    * * * Outside-County and Science-of-Agriculture Outside-County 
pound rates are based on the weight of the advertising portion of the 
mail sent to each postal zone (as computed from the entry office) and 
the weight of the nonadvertising portion without regard to zone.* * *
    [Amend 3.3 by replacing ``Classroom rate'' with ``Classroom'' in 
the fourth and last sentence.]
* * * * *
    [Amend title of 5.0 by replacing ``Standard Mail (B)'' with 
``Package Services'' to read as follows:]
5.0  RATE APPLICATION--PACKAGE SERVICES
* * * * *
    [Revise heading of 5.4 to read as follows:]

5.4  Media Mail

    [Amend 5.4 by replacing ``Special Standard Mail'' with ``Media 
Mail''; no other changes to text.]
* * * * *
    [Amend the heading of 8.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail.'']
    [Amend heading of 9.0 by replacing ``Standard Mail (B) with 
``Package Services'' to read as follows:]
9.0  COMPUTING POSTAGE--PACKAGE SERVICES
    [Revise 9.0 in its entirety to clarify how to calculate postage for 
Package Services:]

9.1  Parcel Post (including Parcel Select), Media Mail, Library 
Mail, and Single-Piece Bound Printed Matter--Permit Imprint

    To compute the total postage for a mailing, for each weight 
increment, multiply the number of pieces by the applicable rate per 
piece. Round each product off to four decimal places. Add the products 
and round up the total postage to the nearest whole cent.

9.2  Parcel Post (including Parcel Select), Media Mail, Library 
Mail, and Single-Piece Bound Printed Matter--Postage Affixed

    For each piece, affix the postage for the weight increment and, if 
applicable, the zone to which the piece is addressed, as shown in R700. 
To calculate the total postage for the mailing, add all of the affixed 
postage amounts for each piece.

9.3  Presorted and Carrier Route Bound Printed Matter--Permit 
Imprint

    Presorted and Carrier Route Bound Printed Matter mailings paid with 
permit imprint are charged a per pound rate and a per piece rate as 
follows:
    a. Per pound rate:
    (1) For pieces 1 pound or less, compute the per pound rate by 
multiplying the total number of addressed pieces by the 1-pound rate 
for the rate category and zone. Do not round this result.
    (2) For pieces weighing more than 1 pound, compute the per pound 
rate by multiplying the unrounded total weight of the addressed pieces 
by the pound rate for the category and zone. Do not round this result.
    b. Per-piece rate. Multiply the total number of addressed pieces by 
the applicable piece rate.
    c. Total Postage. Calculate total postage by adding the total per 
piece calculation to the total per pound calculation. Round off the 
total postage to the nearest whole cent.

9.4  Presorted and Carrier Route Bound Printed Matter--Postage 
Affixed

    Presorted and Carrier Route Bound Printed Matter mailings with 
postage affixed are charged a per pound rate and a per piece rate as 
follows:
    a. For each addressed piece, calculate the per pound rate:
    (1) If the piece weighs 1 pound or less, the per pound rate is the 
rate listed in R700.2.0 for the rate category and zone.
    (2) If the piece weighs more than 1 pound, compute the per pound 
rate by multiplying the unrounded weight of the piece by the pound rate 
for the category and zone. Do not round this result.
    b. Postage per piece. Compute the postage for each piece by adding 
the calculated per pound rate to the per piece rate for the category 
and zone. Round this number up to the next tenth of a cent. Affix this 
amount of postage to the piece.
    c. Total Postage for Mailing. Add all of the affixed postage 
amounts for each piece in the mailing.

P014  Refunds and Exchanges

* * * * *
2.0  POSTAGE AND FEES REFUNDS
* * * * *
    [Amend 2.3 by replacing ``Standard Mail (B)'' with ``Package 
Services mail''; no other changes to text.]

2.4  Full Refund

    [Amend 2.4 by revising 2.4i to read as follows:]
    A full refund (100%) may be made when:
* * * * *
    i. An annual presort mailing fee is paid for Presorted First-Class 
Mail, Standard Mail, Presorted Media Mail, or Presorted Library Mail 
and when a destination entry mailing fee is paid for destination entry 
Parcel Post and Bound

[[Page 52541]]

Printed Matter and no mailings are made during the corresponding 12-
month period.
* * * * *
4.0  REFUND REQUEST FOR EXCESS POSTAGE (VALUE ADDED REFUND)--AT TIME OF 
MAILING
    [Amend 4.1, 4.13, 4.14c, 4.14d, 4.17a (5) and 4.17a (6) and by 
changing ``Standard Mail (A)'' to ``Standard Mail.'']
* * * * *
2.0  PERSONALIZED STAMPED ENVELOPE

P021  Stamped Stationery

* * * * *

2.5  Optional information

    [Amend 2.5b by changing ``Standard Mail (A)'' to ``Standard 
Mail.'']
* * * * *

P022  Postage Stamps

1.0  PURCHASE AND USE

1.2  Postage Due

    [Amend 1.2 by removing the second sentence to read as follows:]
    Postage due must be paid in cash.

P023  Precanceled Stamps

1.0  BASIC INFORMATION

1.2  Use

    [Amend 1.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''.]

3.5  Content of Postmark

    [Amend 3.5a by replacing ``Standard Mail (A) with ``Standard 
Mail''.]
* * * * *

P030  Postage Meters and Meter Stamps

1.0  BASIC INFORMATION
* * * * *
    [Amend 1.5 by replacing ``Special Standard Mail'' with ``Media 
Mail''; no other changes to text.]
* * * * *
3.0  METER SETTING
* * * * *
    [Amend the title of 3.5 by replacing ``Setting'' with ``Service'' 
to read as follows:]

3.5  On-Site Meter Service Program

    [Amend the last sentence of 3.5 to show the new categories for on 
site meter setting and add a new sentence to exclude secured postage 
devices from the meter service fees.]
    * * * The licensee must pay applicable on-site meter service fees 
in R900 and postage by check or advance deposit account at the time of 
the meter service. Secured postage meters are not subject to checking 
in/out fees.
* * * * *
4.0  METER STAMPS
* * * * *
    [Amend 4.8 and 4.9 by replacing ``Standard Mail'' with ``Standard 
Mail and Package Services mail''; no other changes to text.]
* * * * *
5.0  MAILINGS
    [Amend 5.1 by replacing ``Special Standard Mail'' with ``Media 
Mail'' and by removing ``(A)'' from Standard Mail (A)''; no other 
changes to text.]
* * * * *

P040 Permit  Imprints

1.0  BASIC INFORMATION
    [Amend 1.1 by replacing ``Standard Mail (A)'' with ``Standard 
Mail'' and ``Standard Mail (B)'' with ``Package Services mail''; no 
other changes to text.]
* * * * *
2.0  INDICIA PREPARATION
* * * * *
    [Amend 2.5 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
3.0  INDICIA CONTENT
* * * * *
    [Amend 3.2 by changing Standard Mail to Standard Mail and Package 
Services in the heading and content.]
* * * * *
    [Amend 3.4a by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services.'']
    [Amend 3.4b by replacing ``Standard Mail (A) with ``Standard 
Mail''; no other changes to text.]
4.0  INDICIA FORMAT
* * * * *
    [Amend heading of Exhibit 4.1a by replacing ``Standard Mail (A) 
Official Mail'' with ``Standard Mail Official Mail'' and ``Standard 
Mail (B) Official Mail'' with ``Package Services Official Mail''; and 
replace indicia example ``SPECIAL STANDARD MAIL'' with ``MEDIA MAIL''; 
no other changes to text.]
* * * * *
    [Amend the title of Exhibit 4.1b to read as follows:]

Exhibit 4.1b  Indicia Formats for First-Class Mail, Standard Mail, 
and Package Services Mail

    [Amend Exhibit 4.1b by replacing ``Standard Mail (A)'' with 
``Standard Mail,'' ``Special Standard Mail'' with ``Media Mail,'' and 
``PP D/S'' with ``Parcel Select.'']
* * * * *

P070  Mixed Classes

1.0  ATTACHMENTS OF DIFFERENT CLASSES
    [Amend 1.1 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Service Mail''; no other changes to text.]
    [Amend 1.2 and 1.3 by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
2.0  ENCLOSURE IN PERIODICALS PUBLICATION
    [Amend 2.1 through 2.10 by replacing ``Standard Mail (A)'' with 
``Standard Mail; no other changes to text.'']
    [Revise heading of 3.0 to read as follows:]
3.0  ENCLOSURE IN STANDARD MAIL AND PACKAGE SERVICES MAIL
    [Amend 3.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.'']
* * * * *
    [Amend heading of 5.0 by replacing ``Special Standard Mail'' with 
``Media Mail'' to read as follows:]
5.0  COMBINED MAILINGS OF MEDIA MAIL AND BOUND PRINTED MATTER
* * * * *

5.4  Rating of Unmarked Parcel

    [Amend 5.4 by replacing ``Special Standard Mail'' with ``Media 
Mail'' and Amend the introductory paragraph in 5.4 to include Inter-
BMC/ASF rates to read as follows:]
    A parcel containing Bound Printed Matter and Media Mail is charged 
postage at the Inter-BMC/ASF Parcel Post rates if it:
* * * * *

P200  Periodicals

1.0  BASIC INFORMATION
* * * * *
    [Amend 1.4 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
* * * * *
    [Amend 1.9 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; no other changes to text.]
* * * * *

P600  Standard Mail

  1.0 BASIC INFORMATION
    [Amend 1.1 by redesignating 1.1b as P700.1.1, redesignating 1.1a as 
1.1; and

[[Page 52542]]

by replacing ``Standard Mail (A)'' with ``Standard Mail''; no other 
changes to text.]
* * * * *
    [Amend the heading of 2.0 to delete ``Standard Mail (A)'' to read 
as follows:]
2.0  PRESORTED AND ENHANCED CARRIER ROUTE RATES
* * * * *
    [Amend the heading of 3.0 to delete ``Standard Mail (A)'' to read 
as follows:]
3.0  AUTOMATION RATES
* * * * *
    [Add new 4.0 to read as follows:]
4.0  MACHINABLE PARCEL BARCODED DISCOUNT

4.1  All Pieces in Mailing Eligible

    If all parcels in a mailing are eligible for the machinable parcel 
barcoded discount under E610 and E620, the mailing may be paid with 
meter stamps, permit imprints, or precanceled postage under the 
applicable standards.

4.2  Less than 100% Eligibility

    If fewer than 100% of the parcels in the mailing are eligible for 
the machinable parcel barcoded discount, the following postage payment 
standards apply:
    a. Payment with precanceled stamps is not permitted.
    b. Metered postage may be used only if exact postage is affixed to 
each piece in the mailing.
    c. Use of permit imprints is permitted only under a manifest 
mailing system (P910).
    [Add new 5.0 to read as follows:]
5.0  MAIL WITH SPECIAL SERVICES

5.1  Bulk Insurance

    Mailings for which bulk insurance is requested must pay postage and 
fees through a manifest mailing system (P910).

5.2  Electronic Option Delivery Confirmation

    If electronic option Delivery Confirmation is requested for all the 
pieces in the mailing and the mailing consists of pieces of identical 
weight, postage may be paid with metered postage or permit imprints 
under the applicable standards in 2.0. If Delivery Confirmation is not 
requested for all of the pieces in the mailing, or if the pieces are 
not identical weight, either the exact metered postage must be affixed 
to each piece, or a manifest mailing system must be used for permit 
imprint mail under P910. Use of precanceled stamps is not permitted 
with Delivery Confirmation.

5.3  Return Receipt for Merchandise

    If return receipt for merchandise is requested for all the pieces 
in the mailing and the mailing consists of pieces of identical weight, 
postage may be paid with metered postage or permit imprints under the 
applicable standards in 2.0. If return receipt for merchandise is not 
requested for all of the pieces in the mailing, or if the pieces are 
not identical weight, either the exact metered postage must be affixed 
to each piece, or a manifest mailing system must be used for permit 
imprint mail under P910. Use of precanceled stamps is not permitted 
with return receipt for merchandise.
    [Redesignate the heading P700 as P900. Redesignate the heading and 
contents of P710, P720, P730, P750, and P760 as P910, P920, P930, P950, 
and P960, respectively.]
    [Add new P700 to read as follows:]

P700  Package Services

1.0  BASIC INFORMATION

1.1  Payment Method

    [Redesignate P600.1.1b as the contents of 1.1 and amend for clarity 
to read as follows:]
    The mailer is responsible for proper postage payment. Subject to 
the corresponding standards, postage for Package Services mail may be 
paid by any method except precanceled stamps. Pieces with postage 
affixed must bear the correct postage unless excepted by standard. A 
permit imprint may be used for mailings that contain nonidentical-
weight pieces only under P910, P920, or P930. Permit imprints may be 
used for identical weight pieces provided the mail can be separated at 
acceptance into groups that each contain pieces subject to the same 
zone and same combination of rates (e.g., all are zone 4, Inter-BMC, 
with a BMC presort discount and a barcoded discount). Identical weight 
permit imprint mail also may be mailed under P910, P920, or P930.

1.2  Postage Statement and Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each presorted Package 
Services mailing. The postage statement must be supported by 
documentation as required by P012 and the rate claimed unless the 
correct rate is affixed to each piece or if each piece is of identical 
weight and the pieces are separated by rate when presented for 
acceptance.

P900  Special Postage Payment Systems

* * * * *

P920   Optional Procedure (OP) Mailing System

1.0  BASIC INFORMATION
    [Amend 1.1 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services mail''; no other changes to text.]
* * * * *

P950  Plant-Verified Drop Shipment (PVDS)

1.0  DESCRIPTION
* * * * *
    [Amend 1.2c and 1.3b by replacing ``Standard Mail'' with ``Standard 
Mail and Package Services''; no other changes to text.]
* * * * *
2.0  PROGRAM PARTICIPATION
* * * * *
    [Amend 2.3e and 2.5 by replacing ``Standard Mail'' with ``Standard 
Mail and Package Services''; no other changes to text.]
* * * * *
    [Amend 2.7 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
    [Revise heading of 2.8 to read as follows:]

2.8  Postage Statement--Package Services Mail

    [Amend 2.8 by replacing ``Standard Mail (B)'' with ``Package 
Services mail''; no other changes to text.]
* * * * *
4.0  POSTAGE
* * * * *
    [Amend 4.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail.'']
    [Revise heading of 4.3 to read as follows:]

4.3  Package Services Mail

    [Amend 4.3 by replacing ``Standard Mail (B) with ``Package Services 
mail''; no other changes to text.]
* * * * *
    [Amend the heading of 5.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail.'']
* * * * *
    [Revise heading of 6.0 to read as follows:]
6.0  PACKAGE SERVICES PVDS OPTION
* * * * *
    [Amend 6.2 by replacing ``Standard Mail (B) with ``Package Services 
mail''; no other changes to text.]
* * * * *
    [Amend heading of P960 by removing ``(A)'' to read as follows:]

[[Page 52543]]

P960  First-Class or Standard Mail Mailings With Different Payment 
Methods

* * * * *
    [Amend entire R module to read as follows:]

BILLING CODE 7710-12-P

[[Page 52544]]

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BILLING CODE 7710-12-C

[[Page 52579]]

S  SPECIAL SERVICES

S000  Miscellaneous Services

S010  Indemnity Claims

* * * * *
2.0  GENERAL FILING INSTRUCTIONS

2.1  Who May File

    [Amend 2.1 by revising 2.1a and 2.1c to read as follows:]
    A claim may be filed by:
    a. Only the sender, for the complete loss of a registered, insured, 
COD, or Express Mail item (including merchandise return service parcels 
where special services were added and paid for by the sender).
* * * * *
    c. Only the merchandise return permit holder, for merchandise 
return service parcels that are registered or insured as indicated by 
the permit holder on the MRS label.
* * * * *

S070  Mixed Classes

1.0  BASIC INFORMATION

1.1  Priority Mail Drop Shipment

    [Amend 1.1 by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
1.2  Special Handling
    [Amend 1.2 by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]
* * * * *

S500  Special Services for Express Mail

* * * * *
    [Amend 3.0 by changing ``Standard Mail'' to ``Package Services''; 
no other changes to text.]

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

1.0  BASIC INFORMATION
* * * * *

1.5  Additional Services

    [Amend 1.5 by adding new item f to read as follows:]
    The following services may be combined with registered mail if the 
applicable standards for the services are met and the additional 
service fees are paid:
* * * * *
    f. Signature Confirmation.
* * * * *

S912  Certified Mail

1.0  BASIC INFORMATION
* * * * *

1.4  Additional Services

    [Revise 1.4 to read as follows:]
    The following services may be combined with certified mail if the 
applicable standards for the services are met and the additional 
service fees are paid:
    a. Return receipt.
    b. Restricted delivery.
    [Add new 1.5 to specify that mailers may request a receipt after 
mailing to read as follows:]

1.5  Delivery Record

    Mailers may request a verified delivery record after mailing under 
S915.
2.0  MAILING
* * * * *

2.5  Procedure

    [Amend 2.5 by revising 2.5a to read as follows:]
    A mailer of certified mail must:
    a. Enter on Form 3800 the name and complete address of the person 
or firm to whom the mail is addressed.
* * * * *

S913  Insured Mail

1.0  BASIC INFORMATION
* * * * *

1.2  Eligible Matter

    [Amend 1.2 by changing the class names, removing the ``Standard 
Mail Enclosed'' marking requirement, and adding bulk insurance to 
Standard Mail to read as follows:]
    The following types of mail matter may be insured:
    a. Package Services.
    b. First-Class Mail, if it contains matter that may be mailed as 
Standard Mail or Package Services.
    c. Standard Mail pieces subject to the residual shape surcharge 
(bulk insurance only).
    d. Official government mail endorsed ``Postage and Fees Paid.''

1.3  Ineligible Matter

    [Amend 1.3 by revising 1.3f to read as follows:]
    The following types of mail may not be insured:
* * * * *
    f. Standard Mail cards, letters, and flats (i.e., pieces that are 
not subject to the residual shape surcharge).
* * * * *

1.5  Additional Services

    [Revise 1.5 to read as follows:]
    The following services may be combined with insurance if the 
applicable standards for the services are met and the additional 
service fees are paid:
    a. Delivery Confirmation.
    b. Parcel airlift (PAL) service.
    c. Restricted delivery (for items insured for more than $50).
    d. Return receipt for merchandise (for items insured for up to 
$50).
    e. Return receipt service (for items insured for more than $50).
    f. Signature Confirmation.
    g. Special handling.
    [Add new 1.6 to show that customers may request a delivery record 
after mailing to read as follows:]

1.6  Delivery Record

    Mailers may request a verified delivery record after mailing under 
S915.
* * * * *
4.0  DELIVERY
    [Amend 4.0 by changing ``parcel'' to ``item'' to read as follows:]
    An item insured for $50 or less is delivered as ordinary mail. 
Delivery of insured mail is subject to D042.

S914  Certificate of Mailing

1.0  BASIC INFORMATION

1.1  Description

    [Amend 1.1 to read as follows:]
    Certificate of mailing service provides evidence that mail has been 
presented to the Postal Service for mailing. Certificate of mailing 
service does not provide a record of delivery.
    [Revise heading of 1.2 to read as follows:]

1.2  Eligible Matter--Bulk Quantities

    [Amend 1.2 by clarifying text to read as follows:]
    Form 3606 is used for a bulk mailing as a certificate to specify 
the number of pieces mailed. This certificate is provided only for a 
mailing of identical pieces of First-Class Mail, Standard Mail, and 
Package Services. This certificate states only the total number of 
articles mailed and must not be used as an itemized list. A certificate 
of mailing cannot be issued for a bulk mailing paid with a permit 
imprint.
    [Revise heading of 1.3 to read as follows:]

1.3  Eligible Matter--Single Pieces

    [Amend 1.3 by clarifying text to read as follows:]
    Form 3817 is used for an individual certificate for single pieces 
of First-Class Mail (including Priority Mail) and Package Services. 
Privately printed forms also may be used.

[[Page 52580]]

    [Revise heading of 1.4 to read as follows:]

1.4  Eligible Matter--Three or More Single Pieces

    [Amend 1.4 by clarifying the first sentence to read as follows:]
    When requesting a certificate of mailing for three or more pieces 
of single-piece rate mail presented at one time, a mailer may use Form 
3877 (firm mailing book) or a privately printed facsimile, subject to 
payment of the applicable fee for each item listed. * * *
* * * * *
    [Add new 1.7 to read as follows:]

1.7  Additional Services

    The following services may be combined with certificate of mailing 
if the applicable standards for the services are met and the additional 
service fees are paid:
    a. Parcel airlift (PAL) service.
    b. Special handling.
* * * * *

S915  Return Receipt

1.0  BASIC INFORMATION

1.1  Description

    [Revise 1.1 to show that the return receipt is mailed back to 
sender:]
    Return receipt service provides a mailer with evidence of delivery 
(to whom the mail was delivered and date of delivery). After delivery, 
the return receipt is mailed back to the sender. A return receipt 
requested before mailing also supplies the recipient's actual delivery 
address, if the delivery address is different from the address used by 
the sender. A return receipt may be requested before or after mailing.
    [Revise 1.2 to read as follows:]

1.2  Eligible Matter

    Return receipt service is available for Express Mail, First-Class 
Mail (including Priority Mail), and Package Services when purchased 
with one of the following services:
    a. Certified Mail.
    b. COD.
    c. Delivery Confirmation.
    d. Insurance (for more than $50).
    e. Restricted delivery (for items insured for more than $50).
    f. Return receipt for merchandise (for items insured for up to 
$50).
    g. Signature Confirmation.
* * * * *
    [Add new 1.7 to show additional services to read as follows:]

1.7  Additional Services

    The following special services may be combined with return receipt 
service if the applicable standards for the services are met and the 
additional service fees are paid:
    a. PAL.
    b. Special handling.
2.0  OBTAINING SERVICE
* * * * *

2.2  After Mailing

    [Revise 2.2 to clarify how to apply for a delivery record after 
mailing:]
    The mailer may request a delivery record after mailing. When a 
delivery record is available, the USPS provides the mailer information 
from that record, including to whom the mail was delivered and the date 
of delivery. A return receipt after mailing is not available for return 
receipt for merchandise service. The mailer requests a delivery record 
by completing Form 3811-A, paying the appropriate fee in R900, and 
submitting the request to one of the following offices:
    a. For items mailed to an APO/FPO, U.S. territory or possession, or 
freely associated state (with the exception of Puerto Rico and the 
Virgin Islands), send the form to the office of delivery.
    b. For items delivered prior to the activation of the new signature 
capture process, send the form to the office of delivery.
    c. For items delivered after signature capture activation, send the 
form to any post office.
    [Add new 2.3 to show the time limits for requesting a delivery 
record after mailing:]

2.3  Time Limit

    A request for a return receipt after mailing for Express Mail must 
be submitted within 90 days after the date of mailing. All other 
requests must be submitted within 2 years from the date of mailing.
* * * * *
S916  Restricted Delivery
1.0  BASIC INFORMATION
* * * * *
    [Revise the heading and text of 1.2 to clarify that restricted 
delivery cannot be used with Standard Mail to read as follows:]

1.2  Eligible Matter

    Restricted delivery service is available for First-Class Mail 
(including Priority Mail) and Package Services that is sent COD, 
insured for more than $50, registered, or certified.
* * * * *
    [Add new 1.7 to read as follows:]

1.7  Additional Services

    In addition to the prerequisites listed in 1.2, the following 
services may be combined with restricted delivery if the applicable 
standards for the services are met and the additional service fees are 
paid:
    a. Delivery Confirmation.
    b. Parcel airlift service (PAL).
    c. Signature Confirmation.
    d. Special handling.
* * * * *

S917   Return Receipt for Merchandise

1.0  BASIC INFORMATION

1.1  Description

    [Add the following sentence after the first sentence:]
    * * * After delivery, the return receipt is mailed back to the 
sender. * * *
* * * * *
    [Revise heading of 1.2 to read as follows:]

1.2  Eligible Matter

    [Amend 1.2 to add return receipt for merchandise service to 
Standard Mail:]
    Return receipt for merchandise is available for merchandise sent as 
First-Class Mail (including Priority Mail), Standard Mail pieces 
subject to the residual shape surcharge, and Package Services.

1.3  Additional Services

    [Amend 1.3 by clarifying text to read as follows:]
    The following services may be combined with return receipt for 
merchandise if the applicable standards for the services are met and 
the additional service fees are paid:
    a. Delivery Confirmation.
    b. Insurance (for up to $50).
    c. Special handling.
* * * * *
    [Add new 2.7 to specify how a mailer applies for a delivery 
record:]

2.7  Receipt Not Received

    A mailer who did not receive return receipt for merchandise service 
for which the mailer had paid may request information from the delivery 
record using Form 3811-A. Any request must be filed within 2 years 
after the date of mailing. Mailers cannot request a delivery record 
unless the item originally was sent with return receipt for 
merchandise.
3.0  DELIVERY
    [Amend 3.0 to delete information about delivery records to read as 
follows:]
    Delivery of return receipt for merchandise mail is subject to D042.

[[Page 52581]]

S918  Delivery Confirmation

1.0  BASIC INFORMATION
* * * * *

1.2 Eligible Matter

    [Amend 1.2 by adding availability of electronic option to Standard 
Mail subject to residual shape surcharge to read as follows:]
    Delivery Confirmation service is available for Priority Mail, 
Standard Mail pieces subject to the residual shape surcharge 
(electronic option only), and Package Services.
    [Revise the heading and text of 1.3 to read as follows:]

1.3  Ineligible Matter

    Delivery Confirmation is not available for the following:
    a. Mail addressed to APO/FPO destinations or to United States 
territories, possessions, and freely-associated states listed in G011 
(except for Puerto Rico and U.S. Virgin Islands, to which service is 
available).
    b. Mail paid with precanceled stamps.
    c. Standard Mail cards, letters, and flats (i.e., pieces that are 
not subject to the residual shape surcharge).
* * * * *
5.0  ACCEPTANCE
    [Amend 5.0 by deleting the last sentence in 5.0a.]
* * * * *
    [Add new S919 for Signature Confirmation to read as follows:]

S919   Signature Confirmation

1.0  Basic Information

1.1  Description

    Signature Confirmation service provides the mailer with information 
about the date and time an article was delivered, including the 
recipient's signature, and, if delivery was attempted but not 
successful, the date and time of the delivery attempt. A delivery 
record is maintained by the USPS and is available, via fax or mail, 
upon request. No acceptance record is kept at the office of mailing. 
Signature Confirmation service is available only at the time of 
mailing. Signature Confirmation service does not include insurance.

1.2  Eligible Matter

    Signature Confirmation is available for Priority Mail and Package 
Services.

1.3  Service Not Available

    Signature Confirmation service is not available for the following:
    a. Mail addressed to APO/FPO destinations or to United States 
territories, possessions, and freely-associated states listed in G011 
(except for Puerto Rico and U.S. Virgin Islands, to which service is 
available).
    b. Mail paid with precanceled stamps.

1.4  Service Options

    The two Signature Confirmation service options are:
    a. Retail option: Available at post offices at the time of mailing. 
A mailing receipt is provided. Mailers can access delivery information 
over the Internet at www.usps.com or by calling 1-800-222-1811 toll-
free and providing the article number.
    b. Electronic option: Available to mailers who apply identifying 
barcodes to each piece, establish an electronic link with the Postal 
Service to exchange acceptance and delivery data, provide an electronic 
file with Signature Confirmation that are entered for mailing, and 
retrieve delivery status information electronically. No mailing receipt 
is provided; the mailer's manifest serves as a receipt. Mailers can 
access delivery information over the Internet at www.usps.com or by 
calling 1-800-222-1811 toll-free and providing the article number.

1.5  Fees and Postage

    The applicable Signature Confirmation fee in R900 must be paid in 
addition to the correct postage. The fee and postage may be paid with 
postage stamps, meter stamps, or permit imprint.

1.6  Additional Services

    Signature Confirmation may be combined with:
    a. Collect on delivery (COD).
    b. Insured mail.
    c. Registered mail.
    d. Restricted delivery (if purchased with insurance for more than 
$50, COD, or registry service).
    e. Special handling.

1.7  Where to Mail

    A mailer may mail articles with retail option Signature 
Confirmation at a post office, branch, or station, or give articles to 
a rural carrier.

1.8  Firm Mailing Books

    If three or more articles are presented for mailing at one time, 
the mailer may use Form 3877, Firm Mailing Book for Accountable Mail, 
provided by the Postal Service at no charge, or privately printed firm 
mailing bills. Privately printed or computer-generated firm mailing 
bills that contain the same information as Form 3877 may be used if 
approved by the local postmaster. The mailer may omit columns from Form 
3877 that are not applicable to Signature Confirmation mail. Required 
elements are the package identification code (PIC), 5-digit destination 
ZIP Code, and applicable fees. If the mailer wants the firm mailing 
bills receipted by the Postal Service, the mailer must present the 
books with the articles to be mailed at a post office. The sheets of 
the books are the mailer's receipts. All entries made in firm mailing 
books must be made by typewriter or ink. Alterations must be initialed 
by the mailer and accepting postal employee. All unused portions of the 
addressee column must be obliterated with a diagonal line. A receipt is 
required for refund requests.

1.9  Signature Waiver

    Customers may waive the recipient signature by indicating this in 
the prescribed location on the retail label or by placing the 
endorsement ``WAIVER OF SIGNATURE REQUESTED'' directly on the shipping 
label or package in accordance with M012. The endorsement must be 
printed consistent with the requirements for the carrier release 
endorsement. This option allows the delivery employee to sign for the 
article on the first delivery attempt to the listed address if the 
addressee or addressee's agent is not available to accept the shipment. 
Customers who waive the signature requirement must accept the delivery 
employee's signature and date of delivery as proof of delivery. For 
retail labels, detach both parts of the gummed label and attach to the 
mailpiece.
2.0  LABELS

2.1  Types of Labels

    Mailers may use one of the three Signature Confirmation label 
options shown in Exhibit 2.1. Additional information may be found in a 
supplement to Publication 91, Delivery Confirmation Technical Guide:
    a. Form 153 obtained from the post office at no charge. This form 
may be used only with the retail option (see Exhibit 2.1a).
    [Exhibit 2.1a, PS Form 153, will be published at a later date.]
    b. USPS Label 315, available at no charge to electronic option 
mailers (see Exhibit 2.1b).
    [Exhibit 2.1b, Label 315, will be published at a later date.]
    c. Privately printed barcoded labels that meet the requirements in 
2.0 and 3.0 (see Exhibit 2.1c).
    [Exhibit 2.1c, Privately Printed Label, will be published at a 
later date.]

2.2  Label Placement

    The barcoded label section of Label 315 or Form 152 must be placed 
either

[[Page 52582]]

above the delivery address and to the right of the return address or to 
the left of the delivery address. A privately printed Signature 
Confirmation label that is separate from a privately printed address 
label must be placed in close proximity to the address label. In all 
cases, the entire Signature Confirmation label must be placed on the 
address side of the mailpiece and not overlap any adjacent side.
3.0  BARCODES

3.1  Symbology

    Labels printed by mailers must meet the following symbology 
requirements:
    a. Mailers printing their own barcodes and using the retail option 
(1.4a) must print their barcodes using Automatic Identification 
Manufacturers' (AIM) Uniform Specifications for USS Code Interleaved 2 
of 5.
    b. Mailers printing their own barcodes and using the electronic 
option (1.4b) must use one of the following barcode symbologies: UCC/
EAN 128, USS Code Interleaved 2 of 5, USS Code 39, or USS Code 128. 
Each barcode must contain a unique Package Identification Code (PIC) as 
specified in 3.2. The barcodes must meet the specifications in 
Publication 91.

3.2  Package Identification Code (PIC)

    Each barcode symbology must contain a unique PIC:
    a. For UCC/EAN 128, each barcode must contain a unique PIC and be 
made up of five fields totaling 22 characters. Additional information 
and specifications can be found in Publication 91. The five required 
data fields are:
    (1) Application Identifier (AI): Two characters; identifies the 
article as a Signature Confirmation piece.
    (2) Service Type Code (STC): two characters; identifies the type of 
product or service used for each item.
    (3) Customer ID: nine characters; DUNS number that 
uniquely identifies the customer.
    (4) Package Sequence Number (PSN): eight characters; fixed 
sequential number.
    (5) Modulus 10 Check digit: one character.
    b. For USS Code Interleaved 2 of 5, USS Code 39, and USS Code 128, 
each barcode must contain a unique PIC and be made up of four fields 
totaling 20 characters. The four required data fields are fields 2 
through 5 above. Additional information and specifications can be found 
in Publication 91. These symbologies do not use an Application 
Identifier (AI).

3.3  Printing

    Labels printed by mailers must meet the following specifications:
    a. Each barcoded label must bear a unique Signature Confirmation 
PIC barcode as specified in 3.2 and have ``USPS SIGNATURE 
CONFIRMATION'' printed between \1/8\ inch and \1/2\ inch above the 
barcode in minimum 12-point bold sans serif type. Human-readable 
characters that represent the barcode ID must be printed between \1/8\ 
inch and \1/2\ inch under the barcode in minimum 10-point bold sans 
serif type. These characters must be parsed in accordance with 
Publication 91. There must be a minimum of \184\-inch clearance between 
the barcode and any printing. The preferred range of widths of narrow 
bars and spaces is 0.015 inch to 0.017 inch. The width of the narrow 
bars or spaces must be at least 0.013 inch but no more than 0.021 inch. 
All bars must be at least \3/4\ inch high. Bold (\1/16\ inch minimum) 
bars must appear between \1/8\ inch and \1/2\ inch above and below the 
human-readable endorsements to segregate the Signature Confirmation 
barcode from other areas of the shipping label. The line length must be 
equal to the length of the barcode (see Exhibit 2.1b).
    b. Each barcode must meet the requirements in 3.1 for the type of 
service requested.
    c. Mailers must obtain Postal Service certification for each 
printer used to print barcoded Signature Confirmation labels. For 
certification, a mailer must forward for evaluation and approval 20 
barcoded labels/forms generated by each printer to the National 
Customer Support Center (NCSC), Attention Barcode Certification (see 
G043 for address). The Postal Service will issue the mailer a PS Form 
3152, Delivery Confirmation Certification, for each printer certified. 
All barcodes must be in accordance with 2.0 and 3.0. Further 
certification instructions are included in Publication 91.
    d. Barcodes that do not meet specifications will not be accepted by 
the USPS. The USPS will contact the mailer if problems with the 
barcodes are found and will try to resolve the problem. The USPS may 
suspend a mailer's certification if electronic file quality does not 
meet specifications.
    e. Mailers who have previously received certification for label 
printing under the Delivery Confirmation program must submit five 
Signature Confirmation labels to the NCSC (see G043).
4.0  ELECTRONIC FILE TRANSMISSION
    Mailers must meet the following standards for electronic file 
transmission:
    a. Publication 91 contains specifications for electronic file 
transmission. A test file transmission must be uploaded and approved 
before mailings begin. Upon certification, USPS will issue to the 
mailer a Form 3152 for the mailer's electronic file format.
    b. Mailers using the electronic option will be required to transmit 
a file with a unique record for each article mailed. The USPS will 
contact the mailer if problems with the file are found and will try to 
resolve those problems. The USPS may suspend a mailer's certification 
if the electronic file quality does not meet specifications. In 
addition, USPS acceptance units will be notified to charge the customer 
the retail option Signature Confirmation fee.
    c. Mailers who have previously received certification for 
electronic file transmission under the Delivery Confirmation program 
are not required to do any additional certification for Signature 
Confirmation service use.
5.0  ACCEPTANCE
    Customers must meet the following requirements when presenting 
electronic option Signature Confirmation mail for acceptance:
    a. Presorted or permit imprint mailings containing pieces for which 
fees are paid for Signature Confirmation service must be presented to a 
post office business mail entry unit (BMEU), detached mail unit (DMU) 
at the mailer's plant, bulk mail center or auxiliary service facility 
business mail entry unit, or other postal facility capable of properly 
verifying the mailing and at which the mailer has obtained the 
necessary permits or license and paid any applicable mailing fee.
    b. Mailers who use the electronic option or print their own labels 
must submit a completed PS Form 3152 with each mailing. Each PS Form 
3152 must contain the Signature Confirmation electronic file number or 
barcode equivalent, date of mailing, and, if available, the total 
number of Signature Confirmation pieces by class of mail. The barcode 
format must comply with standards in Publication 91.

[[Page 52583]]

S920  Convenience

S921  Collect on Delivery (COD) Mail

1.0  BASIC INFORMATION

1.1  Description

    [Amend 1.1 to show the new $1,000 limit for COD to read as 
follows:]
    Any mailer may use collect on delivery (COD) service to mail an 
article for which the mailer has not been paid and have its price and 
the cost of the postage collected from the recipient. If the recipient 
pays the amount due by check payable to the mailer, the USPS forwards 
the check to the mailer. If the recipient pays the amount due in cash, 
the USPS collects the money order fee(s) from the recipient and sends a 
postal money order(s) to the mailer. The amount collected from the 
recipient may not exceed $1,000. COD service provides the mailer with a 
mailing receipt, and a delivery record is maintained by the Postal 
Service.
    [Amend 1.2 by replacing ``Standard Mail (B)'' with ``Package 
Services'' and ``Special Standard Mail'' with ``Media Mail''; no other 
changes to text.]
* * * * *
    [Amend title of 1.4 by replacing ``Other'' with ``Additional'' to 
read as follows:]

1.4  Additional Services

    [Amend 1.4 by clarifying the text to read as follows:]
    The following services may be combined with COD if the applicable 
standards for the services are met and the additional service fees are 
paid:
    a. Delivery Confirmation (not available with Express Mail COD).
    b. Restricted delivery (not available with Express Mail COD).
    c. Return receipt.
    d. Signature Confirmation.
* * * * *
    S922  Business Reply Mail (BRM)
* * * * *
3.0  POSTAGE AND FEES
* * * * *
    [Redesignate current 3.4 through 3.11 as 3.6 through 3.13, 
respectively. Add new 3.4 and 3.5 to read as follows:]

3.4  Quarterly Fee for High-Volume QBRM

    Mailers may choose to pay a quarterly fee in addition to the annual 
accounting fee; payment of the quarterly fee entitles mailers to a 
lower per-piece charge. The quarterly fee (and annual accounting fee) 
must be paid at each post office where mail is returned and for each 
separate billing desired. Mailers are committed to the ``quarterly fee 
system'' only for the time they pay the quarterly fee (i.e., mailers 
can opt out of the quarterly fee and high-volume QBRM per-piece charges 
by simply not paying the fee for the next quarter). The quarterly fee 
cannot be paid or renewed retroactively to receive a lower per-piece 
charge on pieces already paid for and delivered. The quarterly fee can 
be paid for any three consecutive calendar months.

3.5  Payment Period for Quarterly Fee

    The quarterly fee must be paid in advance for at least one but no 
more than four quarterly periods. A quarterly period begins on either 
the first day of the month (if a mailer pays on or before the 15th of 
the month) or the first day of the following month (if a mailer pays 
after the 15th of the month) and continues for three consecutive 
calendar months. A mailer who pays the quarterly fee is entitled to the 
reduced per-piece charge from the date of payment through the end of 
the quarterly period.
    [Amend the heading of redesignated 3.6 by adding ``Weight-
Averaging'' to read as follows:]

3.6  Nonletter-Size BRM Weight-Averaging Fees

    [Amend redesignated 3.6 by clarifying text to read as follows:]
    A mailer must pay the annual BRM permit fee and the annual 
accounting fee when the bulk weight-averaging method for nonletter-size 
BRM in 7.0 is used. In addition, a maintenance fee must be paid monthly 
for each account to which postage and fees are charged on the basis of 
this method. * * *
* * * * *

S923  Merchandise Return Service

1.0  BASIC INFORMATION

1.1  Description

    [Amend 1.1 by replacing ``Standard Mail (B)'' with ``Package 
Services'' and ``Special Standard Mail'' with ``Media Mail'' and by 
deleting references to the per-piece fee to read as follows:]
    Merchandise return service allows an authorized permit holder to 
pay the postage and special service fees on single-piece rate First-
Class Mail, Priority Mail, and Package Services parcels that are 
returned by the permit holder's customers via a special label produced 
by the permit holder.
* * * * *

1.3  Payment Guarantee

    [Revise 1.3 read as follows:]
    The permit holder guarantees payment of the proper postage and 
special service fees (except for insurance purchased by the sender) on 
all parcels returned via a special label produced by the permit holder.
* * * * *

1.8  Priority Mail Reshipment

    [Amend 1.8 by replacing ``Standard Mail'' with ``Package 
Services''; no other changes to text.]
* * * * *

1.11  Mailer Markings and Endorsements

    [Amend 1.11 to show that unmarked pieces will be treated as Parcel 
Post to read as follows:]
    It is recommended but not required that permit holders preprint a 
rate marking on the merchandise return service labels they distribute. 
Preprinting a rate marking guarantees that returned parcels will be 
given service and charged postage according to the wishes of the permit 
holder. Regardless of weight, all unmarked parcels will be treated as 
Parcel Post and charged Parcel Post rates.
    [Remove item 1.12.]
2.0  PERMITS
* * * * *

2.3  Multiple Accounts

    [Amend 2.3 to clarify the reference to the annual accounting fee:]
    When an advance deposit account is kept at each entry location, a 
separate permit is needed and the annual merchandise return service 
permit and annual accounting fees must be paid at each office.
* * * * *

2.7  Permit Cancellation

    [Amend 2.7 to remove references to the per-piece fee and to delete 
the last sentence to read as follows:]
    The USPS may cancel a permit if the permit holder refuses to accept 
and pay postage and fees on merchandise return service parcels, fails 
to keep sufficient funds in the advance deposit account to cover 
postage and fees, or distributes merchandise return labels or tags that 
do not meet USPS standards.
* * * * *
    [Revise 3.0 to read as follows:]
3.0  POSTAGE AND FEES

3.1  Postage

    Merchandise return service parcels are charged single-piece rate 
postage and special service fees based on the class or subclass marking 
on the label. If a parcel is unmarked, then it is charged Parcel Post 
rates. If the postage for the returned parcel is zoned and there is no 
way to determine where it was sent from (i.e., no postmark or

[[Page 52584]]

return address), then postage is calculated at zone 4 (for Priority 
Mail) or zone 4 Inter-BMC/ASF rates (for Parcel Post). Postage is 
deducted from an advance deposit account.

3.2  Per Piece Charge

    There is no per piece charge for returned parcels.

3.3  Permit Fee

    A permit fee is charged once each 12-month period on the 
anniversary date of the permit. The fee may be paid in advance only for 
the next year and only during the last 30 days of the current service 
period. The fee charged is that which is in effect on the date of 
payment.

3.4  Advance Deposit Account and Annual Accounting Fee

    The permit holder must pay postage and special service fees through 
an advance deposit account and must pay an annual accounting fee (see 
R900). The accounting fee is charged once each 12-month period on the 
anniversary date of the initial accounting fee payment. The fee may be 
paid in advance only for the next year and only during the last 30 days 
of the current service period. The fee charged is that which is in 
effect on the date of payment. A separate advance deposit account for 
MRS is not required; the annual accounting fee is charged if MRS 
postage and fees are paid from an existing account.
4.0  ADDITIONAL FEATURES
    [Amend heading of 4.1 by adding ``Indicated by Permit Holder'' to 
read as follows:]

4.1  Insurance Indicated by Permit Holder

    [Amend 4.1 by clarifying text to read as follows:]
    The permit holder may obtain insured mail service with MRS. Only 
Package Services matter (i.e., matter not required to be mailed at 
First-Class Mail rates under E110) may be insured. Insured mail may be 
combined with Delivery Confirmation and special handling, or both. To 
request insured mail service, the permit holder must preprint or 
rubber-stamp ``Insurance Desired by Permit Holder for $____ (value)'' 
to the left of and above the ``Merchandise Return Label'' legend and 
below the ``Total Postage and Fees Due'' statement on the merchandise 
return label. The value part of the endorsement, showing the dollar 
amount of insurance for the article, may be handwritten by the permit 
holder. If insurance is paid for by the MRS permit holder, then only 
the MRS permit holder may file a claim (S010).
    [Remove current 4.2. Add new 4.2 to read as follows:]

4.2  Insurance Added by Sender

    If the permit holder has not indicated insured mail service on the 
MRS label, then the sender has the option of adding insurance and 
paying the applicable insured fee. If insurance is paid by the sender, 
then only the sender may file a claim (S010). The permit holder pays 
postage upon receipt, but does not pay the insured fee when insurance 
is added by the sender.
    [Revise the title of 4.3 to read ``Insured Markings''; no other 
changes to text.]
* * * * *
5.0  FORMAT
* * * * *

5.6  Format Elements

    [Amend 5.6 by revising 5.6c to clarify that rate markings are 
optional on MRS labels.]
    Format standards required for the merchandise return label are 
shown in Exhibit 5.6a, Exhibit 5.6b, Exhibit 5.6c, and Exhibit 5.6d, 
and described as follows:
* * * * *
    c. Rate Marking. If the rate marking recommended in 1.11 is used, 
it must be placed in the space to the right and above the ``Merchandise 
Return Label'' legend. The marking must be at least 3/16 inch high and 
printed or rubber-stamped. Only the permit holder may apply this 
marking.
* * * * *
    [Amend the postage and fee markings shown in 5.6d(2) to remove the 
entry for the merchandise return service fee.]
    [Amend the postage and fee markings shown in 5.6e(2) to remove the 
entry for the merchandise return service fee.]
    [Amend Exhibits 5.6a, 5.6b, 5.6d, and 5.6d to remove the entry for 
the merchandise return service fee.]
* * * * *

S924  Bulk Parcel Return Service

1.0  BASIC INFORMATION

1.1  Description

    [Amend 1.1 to change ``Standard Mail (A)'' to ``Standard Mail'' and 
to add payment information:]
    Bulk parcel return service (BPRS) allows mailers of large 
quantities of Standard Mail machinable parcels that are either 
undeliverable-as-addressed or opened and remailed by addressees to be 
returned to designated postal facilities. The mailer has the option of 
picking up all returned parcels from a designated postal facility at a 
predetermined frequency specified by the Postal Service or having them 
delivered by the Postal Service in a manner and frequency specified by 
the Postal Service. For this service a mailer pays an annual permit fee 
and a per piece charge for each parcel returned. Payment for the 
returned pieces is deducted from an advance deposit account.

1.2  Availability

    [Amend 1.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail'' and ``Standard Mail (B)'' with ``Package Services'' in 1.2i; no 
other changes to text.]
* * * * *
    [Add new 1.4 to indicate that bulk parcel return service cannot be 
used with special services to read as follows:]

1.4  Special Services

    Special services cannot be added to pieces sent through bulk parcel 
return service.
* * * * *
    [Amend 3.0 by replacing ``Postage'' with ``Charges'' to read as 
follows:]
3.0  CHARGES AND FEES
* * * * *
    [Renumber current 3.2 as 3.5. Add new 3.2 through 3.4 to clarify 
the per-piece charges and to describe the new annual accounting fee to 
read as follows:]

3.2  Per-Piece Charge

    Each piece returned through BPRS is charged only the per-piece 
charge in R900. Postage is not charged for pieces returned through 
BPRS.

3.3  Advance Deposit Account

    The permit holder must pay BPRS fees through an advance deposit 
account and pay an annual accounting fee (see R900). This fee covers 
the administrative cost of maintaining the account and provides the 
mailer with a single accounting of all charges deducted from that 
account. The accounting fee is charged once each 12-month period on the 
anniversary date of the initial accounting fee payment. The fee may be 
paid in advance only for the next year and only during the last 30 days 
of the current service period. The fee charged is that which is in 
effect on the date of payment.

3.4  Existing Advance Deposit Account

    A separate advance deposit account for MRS is not required; the 
annual accounting fee is charged if MRS

[[Page 52585]]

postage and fees are paid from an existing account.
    [Amend the title and content of renumbered 3.5 to clarify the 
payment guarantee to read as follows:]

3.5  Payment Guarantee

    The permit holder guarantees payment of all applicable fees. The 
post office returns MRS items to the permit holder only when there are 
sufficient funds in the advance deposit account to pay the fees on 
returned pieces.
* * * * *
5.0  FORMAT
    [Amend Exhibit 5.0 to change the class marking to ``Standard 
Mail.'']
* * * * *

5.4  Class Endorsement

    [Amend 5.4 to change ``STANDARD MAIL A'' to ``STANDARD MAIL.'' No 
other changes to text.]
* * * * *

S930  Handling

1.0  SPECIAL HANDLING
* * * * *

1.2  Availability

    [Amend 1.2 by replacing ``Standard Mail (B)'' with ``Package 
Services'' and ``Special Standard Mail'' with ``Media Mail''; no other 
changes to text.]

1.3  Additional Services

    [Amend 1.3 to clarify the opening sentence, to change ``Standard 
Mail (B)'' to ``Package Services,'' and to add Signature Confirmation 
to read as follows:]
    The following special services may be combined with special 
handling if the applicable standards for the services are met and the 
additional service fees are paid:
    a. COD.
    b. Delivery Confirmation.
    c. Insurance.
    d. PAL (for Package Services only).
    e. Return receipt for merchandise.
    f. Signature Confirmation.
* * * * *
    [Add new 1.7 to clarify that the nonmachinable surcharge is not 
charged on pieces sent special handling:]

1.7  Nonmachinable Parcels

    The Parcel Post nonmachinable surcharge is not charged on parcels 
sent special handling.
2.0  PARCEL AIRLIFT (PAL)
* * * * *
    [Amend 2.2 by replacing ``Standard Mail (B)'' with ``Package 
Services''; no other changes to text.]

2.3  Additional Services

    [Amend 2.3 to clarify the opening sentence to read as follows:]
    The following special services may be combined with PAL if the 
applicable standards for the services are met and the additional 
service fees are paid:
* * * * *
    An appropriate amendment to 39 CFR to reflect these changes will be 
published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-21416 Filed 8-28-00; 8:45 am]
BILLING CODE 7710-12-P