[Federal Register Volume 65, Number 242 (Friday, December 15, 2000)]
[Rules and Regulations]
[Pages 78538-78654]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31357]



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Part II





Postal Service





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39 CFR Part 111



Changes to the Domestic Mail Manual to Implement Docket No. R2000-1; 
Final Rule

  Federal Register / Vol. 65, No. 242 / Friday, December 15, 2000 / 
Rules and Regulations  

[[Page 78538]]


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POSTAL SERVICE

39 CFR Part 111


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

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the rate, fee, and 
classification changes for all classes of mail included in the Decision 
of the Governors of the Postal Service in Postal Rate Commission Docket 
No. R2000-1.

EFFECTIVE DATE: This final rule is effective at 12:01 a.m. on January 
7, 2001.

FOR FURTHER INFORMATION CONTACT: Sherry Suggs, Office of Mail 
Preparation and Standards, 703-292-3648.

SUPPLEMENTARY INFORMATION: 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.
    On August 29, 2000, the Postal Service published for comment in the 
Federal Register a proposed rule (65 FR 52479) that provided 
information on the implementation rules for the rate, fee, and 
classification changes that the Postal Service proposed to adopt if its 
requested changes in Docket No. R2000-1 were recommended by the PRC and 
approved by the Governors of the Postal Service.
    On November 13, 2000, pursuant to 39 U.S.C. 3624, the PRC issued 
its Recommended Decision on the Postal Service's Request to the 
Governors of the Postal Service. The PRC recommendations made revisions 
to some of the mail classification structure, rates, and fees requested 
by the Postal Service. Based on an extensive analysis of the PRC's 
Recommended Decision and deliberation as to its consequences to the 
Postal Service and its customers, and pursuant to 39 U.S.C. 3625, the 
Governors acted on the PRC's recommendations on December 4, 2000. The 
Governors determined to allow the recommended rates and fees and the 
majority of the classification recommendations to take effect under 
protest. The Governors expressed disagreement with the Commission's 
estimate of required revenues in the test year, and returned the 
Recommended Decision to the Commission for reconsideration of the 
Postal Services revenue requirement. In a separate decision, the 
Governors rejected the PRC's recommendation to establish a one-pound 
flat rate for Priority Mail and ``shell'' classifications for 
Information Based Indicia Program Mail and Courtesy Envelope Mail. The 
Governors also rejected the Commission's recommendation to include 
footnotes in the Standard Mail rate schedules indicating a 3.3 ounce 
maximum weight and breakpoint weight.
    The Board of Governors set an implementation date of January 7, 
2001, for the rates, fees, and classifications allowed to take effect. 
This final rule contains the DMM standards adopted by the Postal 
Service to implement the Governors' decision. The revised DMM standards 
will take effect on January 7, 2001.
    Part A summarizes the major changes made to the DMM implementing 
language since publication of the proposed rule (65 FR 52479). This 
includes changes made because of differences in the Postal Service's 
proposal and the PRC's recommended decision, changes made in response 
to the Governors' decisions, and changes made by the Postal Service in 
response to mailer comments or for other reasons. Part B of this final 
rule summarizes, by class of mail and special service category, all of 
the revisions made to current DMM Issue 55 to implement R2000-1. Part C 
of this final rule contains an analysis of the comments received on the 
proposed rule and the Postal Service responses. Part D summarizes the 
changes by DMM module and section. The actual implementing language for 
the DMM follows at the end of this final rule.
    As information, the DMM language in this final rule incorporates 
revisions to the DMM from four previously published Federal Register 
final rules that also will take effect on January 7, 2001. 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 final rule have been synchronized with these other final rules and 
may not match the numbering and language in current DMM Issue 55.

A. Major Changes and Additions Other than Rate and Fee Levels Since 
Publication of the August 29, 2000, Proposed Rule

1. Express Mail

    The Postal Service has added clarifying language to DMM S500.3.0 to 
provide for use of electronic option Delivery Confirmation with 
Priority Mail, Standard Mail parcels, and Package Services mail 
enclosed in Express Mail drop shipment mailings. Use of electronic 
option Signature Confirmation also will be permitted for Priority Mail 
and Package Services mail that is enclosed in Express Mail drop 
shipments. Retail option Delivery Confirmation and Signature Service is 
not available for mail enclosed in Express Mail drop shipment mailings.

2. Priority Mail

    The Postal Service has added clarifying language to DMM S070 to 
provide for use of electronic option Delivery Confirmation with 
Standard Mail parcels and Package Services mail enclosed in Priority 
Mail drop shipment mailings. Use of electronic option Signature 
Confirmation also will be permitted for Package Services mail that is 
enclosed in Priority Mail drop shipments. Use of retail option Delivery 
Confirmation and Signature Confirmation is not permitted with Standard 
Mail and will not be permitted with Package Services mail enclosed in 
Priority Mail drop shipments. Delivery Confirmation (either retail or 
electronic option) is not available for the Priority Mail portion of 
the drop shipment.

3. First-Class Mail

a. Maximum Weight for Automation Heavy Letters
    The maximum weight for First-Class Mail heavy letters that may 
qualify for automation letter rates will be 3.3 ounces (.2063 pound).
b. Barcodes on Automation Flats
    DMM C840.3.0 has been revised to allow application of two POSTNET 
barcodes on the address side of flat-size

[[Page 78539]]

automation rate pieces provided certain conditions are met.

4. Periodicals

a. DDU Rates for Periodicals Mail Entered under Exceptional Dispatch
    Based on the Postal Rate Commission's recommended decision, the 
final rule will include DMM changes that will provide for DDU rates for 
Periodicals mail entered under exceptional dispatch. The change will 
limit DDU rates under exceptional dispatch to zones 1 and 2 and 
provides a restriction on eligibility to publications with circulation 
of 25,000 and under.
b. DMM Renumbering
    The information contained in DMM E220 in the proposed rule has been 
renumbered as DMM E217.
c. Maximum Weight for Automation Heavy Letters
    The maximum weight for Periodicals heavy letters that may qualify 
for automation letter rates will be 3.3 ounces (.2063 pound).
d. Barcodes on Automation Flats
    DMM C840.3.0 has been revised to allow application of two POSTNET 
barcodes on the address side of flat-size automation rate pieces 
provided certain conditions are met.

5. Standard Mail (formerly Standard Mail (A))

a. Maximum Weight Limit for Automation Letters
    The maximum weight for heavy letters that may qualify for 
automation letter rates will be 3.3 ounces (.2063 pound).
b. Computation of Postage
    Proposed DMM E610.5.7 (formerly DMM E612.4.5) that contained 
language that mailers must compute postage using both piece and piece/
pound rates and pay whichever is higher, was removed. Because all 
pieces weighing 3.3 ounces or less will pay postage using minimum per 
piece rates and all pieces weighing more than 3.3 ounces will pay 
postage using the piece/pound rates, this computation by mailers is not 
necessary.
c. Barcodes on Automation Flats
    DMM C840.3.0 has been revised to allow application of two POSTNET 
barcodes on the address side of flat-size automation rate pieces 
provided certain conditions are met.
d. Permissible Use of Electronic Option Delivery Confirmation With 
Standard Mail Parcels Enclosed in a Priority Mail or Express Mail Drop 
Shipment
    The Postal Service has added clarifying language to DMM S070 and 
S500.3.0 to provide for use of electronic option Delivery Confirmation 
with Standard Mail enclosed in Priority Mail Drop Shipment or Express 
Mail Drop Shipment mailings. Use of retail option Delivery Confirmation 
is not permitted with Standard Mail. Delivery Confirmation also is not 
available for the Priority Mail portion of the drop shipment.

6. Combined Package Services Mail for DSCF and DDU Rates

a. Overflow Sacks
    Based on comments received on the proposed rule, standards were 
added to DMM E753.2 and 3 to provide for the preparation of 5-digit 
overflow sacks for Combined Package Services mailings prepared in sacks 
or on pallets.
b. Clarification of Destination Entry Rate Eligibility
    In DMM E753, references to ``destination entry'' were changed to 
``DSCF and DDU'' to clarify that DBMC rates are not available under DMM 
E753 for combined Package Services mailings.
c. Clarification of Minimum Pallet Volumes
    Minor changes were made throughout DMM E753 for combined Package 
Services mail prepared on pallets to clarify that there are two options 
for meeting minimum pallet volumes. Pallets must contain (1) a minimum 
of 50 combined parcels and 250 pounds of combined Package Services 
mail, or (2) 36 inches of mail. In addition, E753.1.1b(2) was amended 
to clarify that the height of the pallet is excluded when determining 
the minimum of 36 inches of mail on pallets.
d. Clarification of Postage Payment Method
    DMM E753.1.1g was revised and new DMM E753.1.1h added to clarify 
that postage for combined Package Services mailings must be paid by 
permit imprint under an approved manifest mailing system agreement.
e. Maximum Height for Pallet Boxes
    DMM M041.4.2 has been revised to add a requirement that for 
mailings prepared in pallet boxes to qualify for the DSCF or DDU rate, 
the height of the pallet box may not exceed 60 inches (excluding the 
pallet) as is currently required for Parcel Select DSCF and DDU rate 
mail (DMM M041.4.2).

7. Bound Printed Matter

a. Eligibility of Flat-Size Presorted Bound Printed Matter for DDU 
Rates
    The final implementing standards in DMM E753 permit flat-size 
Presorted Bound Printed Matter sorted to 5-digit containers or 5-digit 
bedloaded packages to qualify for DDU rates if the pieces weigh over 
one pound and are entered at the appropriate destination delivery unit. 
The Drop Shipment Product must be used to determine the correct 
destination entry facility for the 5-digit sorted flat-size Bound 
Printed Matter entered at Presorted rates. If the Drop Shipment Product 
lists multiple facilities for a single 5-digit ZIP Code, the mailer 
must inquire about the correct drop site when contacting the DDU to 
schedule an appointment.
b. Clarification of Package and Sack Minimums
    DMM M045, M722, and M723 were amended to include a clarification of 
the term ``whichever comes first,'' as it is used in the minimum size 
standards for preparing packages and sacks.
c. Correction of Summary of Changes to Machinable Parcel Sacking 
Standards
    The summary of changes information in the proposed rule incorrectly 
stated that there were no changes to machinable parcel sack preparation 
other than eliminating the 1,000 cubic inch sack sortation option. The 
summary of changes in this final rule correctly shows that machinable 
parcel preparation is revised to add the ``whichever comes first'' 
criterion to the minimum sack requirements, and to allow mailers the 
option of preparing an ASF sack when such pieces are entered at the 
DBMC rates.
d. Clarification of Carrier Route Rate Eligibility
    DMM E712.4.3, which was contained in the proposed rule, is deleted 
in this final rule. This section was erroneously included in the 
proposed rule and contained Carrier Route rate eligibility standards 
that conflicted with E712.2.0.
e. Clarification of Packaging Standards in M020
    DMM M020 has been clarified to (1) show that mixed ADC packages may 
contain fewer than two physical pieces, (2) clarify that each physical 
package of Bound Printed Matter must always contain at least two pieces 
except for mixed ADC packages and, under the conditions described in 
that section,

[[Page 78540]]

packages of Carrier Route mail prepared in sacks.
f. Revision of Maximum Individual Piece Weight for Package Preparation
    The proposed rule preparation requirements for sacked mailings of 
irregular parcels stated that pieces weighing 10 pounds or less must be 
packaged prior to sacking. However, for Presorted rate irregular 
parcels, the minimum package size was proposed to be and is stated in 
this final rule to be 10 pieces or 10 pounds, whichever comes first, 
with a stipulation that each package must contain at least 2 pieces. 
Under this scenario, a single piece weighing 10 pounds would meet the 
minimum packaging standard and would also be required to meet the 
standard that each package contain at least 2 pieces. The standard 
requiring at least 2 pieces in each physical package would, for a 10-
pound mailpiece, actually result in a minimum package size of 20 pounds 
rather than 10 pounds.
    To eliminate this discrepancy, the cut-off weight for preparing 
irregular parcels in packages in DMM M722 has been changed from 
``weighing 10 pounds or less'' to ``weighing less than 10 pounds.''
    To keep the packaging requirements parallel, this change also has 
been made for carrier route irregular parcels in sacks (DMM M723) and 
for all packages on pallets (DMM M045).
g. Revised Sacking Criteria for Presorted Irregular Parcels Weighing 10 
or More Pounds
    DMM M722.4.0, Required Preparation--Irregular Parcels Weighing 10 
Pounds or More, has been revised to remove the sacking criterion of 10 
or more pieces. The proposed rule stated that irregular parcels each 
weighing over 10 pounds were to be sacked whenever there were at least 
10 pieces or 20 pounds, whichever occurs first, for a presort 
destination. Under the stated ``whichever occurs first'' rule, pieces 
that weigh over 2 pounds would always be sacked under the minimum 20-
pound rule. Since this section pertains to only pieces that 
individually weigh 10 or more pounds, the option to sack based on the 
criterion of at least 10 pieces for a presort destination would never 
be used and it is therefore deleted.
h. Exception to Packaging for Presorted Rate Irregular Parcels in 5-
Digit Sacks
    An exception has been added to the packaging requirement in DMM 
M722 for Presorted rate irregular parcels that are prepared in 5-digit 
sacks. Mailers of Presorted rate irregular parcels prepared in 5-digit 
sacks, may at their option, prepare such pieces loose in sacks without 
physical packaging provided the number of pieces in the sack meets the 
minimum package size and sack size requirements and the pieces in the 
5-digit sack(s) are individually wrapped or enveloped.
i. Clarification of Mixed ADC Sack Preparation to Qualify for DBMC 
Rates
    Mailers who opt to claim the DBMC rates for mail in mixed ADC sacks 
are 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 (one set of mixed ADC sacks containing packages qualifying for 
DBMC rates and one set of mixed ADC sacks for packages that do not 
qualify for DBMC rates). For this purpose, DMM E650 and E752 have been 
clarified to specify that mailers must assign ADC packages to the 
respective qualifying or nonqualifying mixed ADC sacks based on the 
``label to'' ZIP code for the ADC (DMM L804). For mixed ADC packages, 
separate mixed ADC packages must be prepared based on the individual 
addresses on the pieces. That is, a mixed ADC package(s) for pieces 
within the ASF or BMC entry point must be prepared and a separate mixed 
ADC package(s) for pieces outside the entry ASF or DBMC area must be 
prepared (using either Exhibit E650.5.1 or Exhibit E751.1.3).
j. Correction of Eligibility of Presorted Rate Machinable Parcels for 
DSCF Rates
    DMM E752.3.3 has been amended to remove the requirement that was 
incorrectly published in the proposed rule that stated mailers of 
palletized machinable parcels at Presorted rates would be required to 
determine if the 5-digit facility was able to handle pallets using the 
Drop Shipment Product maintained by the National Customer Support 
Center (NCSC) and that pallets could not be prepared if the 5-digit 
facility was unable to handle pallets.
k. Maximum Height for Pallet Boxes at DSCF and DDU Rates
    DMM M041.4.2 has been revised to add a requirement that for 
mailings prepared in pallet boxes to qualify for the DSCF or DDU rate, 
the height of the pallet box may not exceed 60 inches (excluding the 
pallet) as is currently required for Parcel Select DSCF and DDU rate 
mail (DMM M041.4.2).

8. Parcel Post

    Some of the standards for Parcel Post have been reorganized for 
clarity since the publication of the proposed rule. Specifically, the 
criteria for nonmachinable parcels for purposes of applicability of the 
nonmachinable surcharges for inter-BMC, Intra-BMC, and DBMC rate 
parcels have been moved from E711 to C700.
    There have been no substantive changes to the standards for Parcel 
Post since publication of the proposed rule.

9. Media Mail and Library Mail

    DMM M045.3.6 has been corrected to show that pallets of Presorted 
Media Mail and Presorted Library Mail must show ``PSVC'' on Line 2 to 
indicate the class of mail.

10. Special Services

a. Business Reply Mail
    Effective November 5, 2000, the Postal Service completely rewrote 
DMM standards for business reply mail (see Postal Bulletin 22035 (10-
19-00), available via www.usps.com). This rewrite was done for clarity 
and consistency. Therefore, standards for business reply mail in this 
final rule have been reorganized to reflect the new structure of DMM 
units E150, P014, R900, and S922.
    A provision in the DMCS that required permit holders to maintain an 
advance deposit account solely for the use of business reply mail has 
been deleted. Therefore, DMM S922.3.3 is revised to show that permit 
holders will be able to maintain a single advance deposit account from 
which multiple items can be deducted (e.g., BRM, QBRM, merchandise 
return service, incoming shortpaid mail, address correction notices, 
etc.). If permit holders request separation of charges, then they must 
pay an annual accounting fee for each separation, as appropriate.
b. Insurance
    DMM S913.1.5 was rewritten to clarify the additional services that 
can be added to insurance.
c. Registered Mail
    A sentence was added to the DMM to clarify that registered items 
receive registered treatment while they are being forwarded or returned 
(DMM F010.5.4e). DMM S911.1.5 was rewritten to clarify the additional 
services that can be added to registered mail.
d. Return Receipt
    Editorial changes were made to DMM S915.1.2 to clarify that certain 
special services can be combined with return receipt only at the time 
of mailing. DMM S915.1.7 was revised to allow Delivery Confirmation and 
Signature Confirmation services to be added as

[[Page 78541]]

additional services, provided that one of the prerequisite services in 
DMM S915.1.2 is purchased first. DMM S915.2.2 was amended to remove 
instructions related to activation of the signature capture process. 
DMM S915.4.2 was amended to clarify procedures for requesting delivery 
information.
e. Return Receipt for Merchandise
    Proposed DMM S917.1.2 is revised to remove First-Class Mail as 
eligible matter. Return receipt for merchandise service is not 
currently an option for First-Class Mail that is 13 ounces or less; the 
reference to First-Class Mail was included in the proposed rule in 
error. Return receipt for merchandise service is available only for 
Priority Mail, Standard Mail parcels that are subject to the residual 
shape surcharge, and Package Services.
f. Signature Confirmation
    Minor changes were made to the DMM language to clarify how delivery 
information can be retrieved and to clarify requirements for the 
package identification code. In addition, mailers who have previously 
received certification for label printing under the Delivery 
Confirmation program are not required to obtain any additional 
certification to use Signature Confirmation (DMM S919.3.3). Standards 
were added to allow mailers to use an integrated barcode to combine 
Delivery Confirmation or Signature Confirmation and insurance services 
(DMM S919.1.7, 3.4, and 4.0). Waiver of signature is not available when 
Signature Confirmation is combined with other special services (DMM 
S919.1.10). DMM C850.1.4 was amended to include information about 
concatenated and integrated barcodes with Signature Confirmation 
service. Language was added to F020.3.7 to show that pieces with 
Signature Confirmation are forwarded without payment of additional 
special service fees. P014.2.34f was amended to add language for 
refunds for Signature Confirmation service. S913.2.5 was amended to add 
information about integrated barcodes with Signature Confirmation and 
insurance.
g. Mailing List Services
    DMM A910.2.2 was revised to show that the minimum fee ($7.50) for 
correcting a mailing list applies to lists with fewer than 30 names or 
addresses. This revision was omitted from the proposed rule.
h. Merchandise Return Service
    DMM S923.3.4 was amended to clarify that a separate accounting fee 
must be paid for each separate withdrawal (billing) requested by a 
permit holder. This change is consistent with current standards for 
business reply mail.
i. Payment Period for Fee Renewals
    On December 14, 2000, the Postal Service revised current DMM 
sections E100.4.1, E612.4.7, E630.1.5, S922.2.3, S922.3.3, S923.3.1, 
and S924.3.1 to allow customers to renew fee payments any time during 
the last 60 days of the current period (see Postal Bulletin 22039 (12-
14-00)). Affected sections in this final rule have been revised 
accordingly to be consistent with the 60-day payment period.

B. Summary by Class of Mail and Special Service of All DMM 
Revisions for R2000-1

1. Express Mail

a. Express Mail Rate Highlights
    Overall, Express Mail rates will increase by an average of 3.6%. 
Moderate increases will occur 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 will increase from $8.25 to $10.25 per occurrence. 
The fee for delivery stops (Custom Designed Service only) will increase 
from $8.25 to $10.25. The fee for every $100 increment of additional 
insurance desired above the standard $500 of coverage will increase 
from $0.95 to $1.00.
b. Express Mail Rate Structure
    There are no changes to the rate structure of Express Mail. Same 
Day Airport Service is still suspended.
c. Express Mail Preparation Changes
    There are no changes to mail preparation requirements for Express 
Mail.

2. Priority Mail

a. Priority Mail Rate Highlights
    Overall, Priority Mail rates will increase by an average of 16%. 
The fee for pickup service will 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 has been implemented for pieces 
weighing 1 pound or less. Prior to this change all Priority Mail pieces 
weighing 2 pounds or less were charged the 2-pound rate. Mail that is 
placed in a Priority Mail flat-rate envelope will continue to be 
charged the 2-pound rate regardless of the actual weight of the piece.
(2) Keys and Identification Devices
    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 
will increase from $0.30 to $0.35.
c. Priority Mail Preparation Changes
    There are no changes to mail preparation requirements for Priority 
Mail.

3. First-Class Mail

a. First-Class Mail Rate Highlights
    Overall, First-Class Mail rates will increase by an average of 
1.8%. The single-piece first-ounce letter rate increases by only one 
cent, from $0.33 to $0.34, and the rate for each additional ounce 
reduces by one cent from $0.22 to $0.21. The single-piece card rate 
remains at $0.20.
    The first-ounce letter rate for Qualified Business Reply Mail 
(QBRM) increases from $0.30 to $0.31, and the card rate for QBRM 
reduces from $0.18 to $0.17.
    The nonstandard surcharge for single-piece rate mail weighing one 
ounce or less will remain the same at $0.11. The nonstandard surcharge 
for Presorted rate and Automation rate pieces will remain the same at 
$0.05.
    The basic automation flat rate will increase from $0.30 to $0.31 
for the first ounce. The combined 3/5-digit rate category for 
automation flats will be eliminated. New and separate automated rate 
categories for 3-digit automation flats and for 5-digit automation 
flats will be implemented. The annual presort mailing fee will increase 
from $100 to $125.
b. First-Class Mail Rate Structure
    The current automation flats 3/5-digit rate will be split into two 
separate rates: a 3-digit automation rate and a 5-digit automation 
rate.
c. First-Class Mail Preparation Changes
(1) Maximum Weight Limit for Automation Heavy Letters (C810.2.3)
    The maximum weight for heavy letters that may qualify for 
automation letter rates also will be 3.3 ounces (.2063 pound).

[[Page 78542]]

(2) Automation Flats (DMM M011, M030, M033, M820, M910)
    The Postal Service will change the standards for the 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 will remain the same.
    The Postal Service will also add a new tray-based presort option 
for automation flats. When using this option, mailers will not need to 
prepare automation flats in 5-digit, 3-digit, ADC, and mixed ADC 
packages. Instead, mailers will prepare flat trays to 5-digit 
(optional), 3-digit, and ADC destinations whenever there are 90 or more 
pieces to a presort destination, and place remaining pieces in mixed 
ADC tray(s) that have no minimum tray quantity. 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 (other than mixed ADC), mailers will be required to 
physically fill flat tray(s) for that destination and will be allowed 
one less-than-full tray or one overflow tray per 5-digit, 3-digit, and 
ADC destination. Preparation of 5-digit trays also will be optional 
under this tray-based preparation option. Rates will be based on the 
sortation level of the tray to which a piece is sorted. Mailers 
choosing to prepare their mail using this option will 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.)
(3) Tray Containers (DMM M033)
    For clarification, new information has been added 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) Application of Two POSTNET Barcodes for Automation Flats (DMM 
C840.3.0)
    Mailers have requested the ability to qualify flat-size mailpieces 
that bear two POSTNET barcodes for the automation flat rates. Mailers 
indicate that a mailpiece bearing a barcode that is not CASS-certified 
can in some instances be upgraded to contain a second delivery point 
barcode that meets the CASS- or MASS-certification criterion for 
eligibility for automation flat rates if it is subsequently processed 
through an MLOCR or other barcoding system.
    However, unlike automated processing of letter mail, FSM barcode 
readers will read the first barcode it recognizes. Therefore, which 
barcode is read depends on the orientation of the mailpiece when fed 
through the flat sorter and the location of the barcodes on the 
mailpiece.
    A cooperative effort between the Postal Service and MLOCR vendors 
led to the development of standards that will allow mailers to submit 
mailpieces that bear two POSTNET barcodes to qualify for automation 
flat-rates. The Postal Service believes these standards meet both the 
interest of the mailers in qualifying for the most advantageous postage 
rate discounts at the lowest possible mailing costs and the interest of 
the Postal Service to generate more barcoded flat-size mailpieces. In 
addition, MLOCR vendors plan to offer FASTforwardsm to their 
clients in the future to meet the First-Class Mail requirement for move 
update in DMM E140.
    The Postal Service will allow the application of two POSTNET 
barcodes on the addressed side of flat-size automation rate pieces 
providing certain requirements are met. The presence of two POSTNET 
barcodes on a flat-size mailpiece will be permitted only when the first 
barcode is applied in the address block and that barcode is either a 5-
digit barcode or it is a ZIP+4 or delivery point barcode that is not 
CASS-certified. The second barcode must be a delivery point barcode and 
must be CASS- or MASS-certified. It is preferred, but not required, 
that the second barcode be applied in the lower right area of the 
mailpiece parallel to and in the same direction as the delivery 
address. A greater than one-inch separation between the two barcodes is 
required. The second POSTNET barcode must not be placed near the return 
address. A no-spray clear zone of at least one inch below the return 
address is required. This is because OCRs on Postal Service flat 
sorting machines use the location of the POSTNET barcode to determine 
the location of the destination address block. If a POSTNET barcode is 
applied close to the return address and is scanned first, it is highly 
probable that the OCR will encode the return address and inadvertently 
return the mailpiece to the sender. The preferred location of the lower 
right area of the mailpiece will increase the likelihood that the CASS- 
or MASS-certified delivery point barcode is the first one read by the 
FSMs.
    The application of two POSTNET barcodes is a temporary solution and 
may be revised subsequent to implementation of planet codes and/or 
testing and implementation of other options. At that time, MLOCR 
vendors and or mailers will be given a 90-day transition period to 
comply with the new requirements.

4. Periodicals

a. Periodicals Rate Highlights
    The overall proposed average rate increase for Periodicals 
decreased from 12.7% to 9.5%. Outside-County Periodicals will have an 
average increase of 9.5% while Within-County Periodicals will have an 
average increase of 6.8%. Regular, Nonprofit and Classroom will have 
average increases of 9.9%, 7.2% and 9.6%, respectively.
    Two of the preferred subclasses (Nonprofit and Classroom) will be 
combined with the Regular subclass to form an Outside-County subclass 
with one set of rates. Nonprofit and Classroom publications will 
receive a 5% discount on total Outside-County postage, excluding the 
postage for advertising pounds. The Within-County subclass will remain 
a separate subclass with a separate set of rates.
    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 (except delivery unit, 
which decreases), Science-of-Agriculture (except delivery unit, which 
decreases), 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 rates and discounts.
    The fee for original entry will increase from $305 to $350. The re-
entry and newsagents' fees will decrease from $50 to $40. The fee for 
additional entry will remain unchanged at $50.
    DMM changes will provide for DDU rates for Periodicals entered 
under exceptional dispatch authorizations. The change will limit DDU 
rates under exceptional dispatch to mail destined to zones 1 and 2 and 
will generally restrict eligibility to publications with circulation of 
25,000 and under.
b. Periodicals Rate Structure
    Regular, Nonprofit, and Classroom publications will use the same 
Outside-County rate schedule. Nonprofit and

[[Page 78543]]

Classroom publications will 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 will 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 will delete 
the option to prepare bundles on pallets under current DMM M045.3.0. 
The provisions for preparing packages on pallets will remain in DMM 
M045.2.0.
(2) Maximum Weight Limit for Automation Heavy Letters (C810.2.3)
    The maximum weight for heavy letters that may qualify for 
automation letter rates also will be 3.3 ounces (.2063 pound).
(3) Other 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 
January 7, 2001. 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). In addition, a final rule has been published 
concerning ``Sack Preparation Changes for Periodicals Nonletter-Size 
Mailing Jobs that Include Automation Flat Rate and Presorted Rate 
Mailings.'' This final rule requires, effective January 7, 2001, use of 
the co-sacking preparation method in DMM M910 for Periodicals 
nonletter-size mailing jobs that include both an automation flats 
mailing and a Presorted flats mailing. Information concerning optional 
use of DMM M910 and its associated preparation criteria was published 
in Postal Bulletin 22036 (11-2-00). Information concerning required use 
of DMM M910 by Periodicals mailers will be published in Postal Bulletin 
22039 (12-14-00) as ``Preparation Changes for Periodicals Nonletter-
Size Mailing Jobs.''

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

a. Standard Mail Rate Highlights
    Regular rates will increase by an average of 8.8%. Rates for 
commercial Enhanced Carrier Route (ECR) mail will increase by an 
average of 4.5%. Rates for Nonprofit mail will increase by an average 
of 4.8%. Rates for Nonprofit Enhanced Carrier Route will increase by an 
average of 18.3%.
    Discounts for destination entry rate mail (DBMC, DSCF, and DDU) 
have increased. The annual presort mailing fee increases from $100 to 
$125.
b. Standard Mail Rate Structure
    All Standard Mail letters and non-letters are subject to a weight 
limit of 3.3 ounces (.2063 pound) for the minimum per piece rate.
    A new machinable parcel barcoded discount of $0.03 will apply to 
Standard Mail machinable parcels that are subject to the residual shape 
surcharge and that meet other preparation requirements. This machinable 
parcel barcoded discount is available only for the Regular and 
Nonprofit Standard Mail subclasses (it will not be available for pieces 
mailed at the Enhanced Carrier Route and Nonprofit Enhanced Carrier 
Route subclasses).
    There are two different residual shape surcharges: Enhanced Carrier 
Route and Nonprofit Enhanced Carrier Route mail have a residual shape 
surcharge of $0.15, and Regular and Nonprofit mail have a residual 
shape surcharge of $0.18.
    Return receipt for merchandise, bulk insurance, and electronic 
option Delivery Confirmation are available for Standard Mail parcels 
that are subject to the residual shape surcharge.
c. Standard Mail Preparation Changes
(1) Name Change and DMM Restructuring
    The name of the mail class ``Standard Mail (A)'' will change to 
``Standard Mail.'' Throughout this final rule, ``Standard Mail'' is 
used consistently in the DMM text to indicate the class formerly known 
as ``Standard Mail (A).'' For brevity, not all DMM sections for which 
only name changes apply 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, M600, P600, and R600 now contain 
standards for only Standard Mail. Matter in these sections that 
formerly contained standards for Package Services mail have been moved 
into new sections under C700, D700, E700, M700, P700, and R700, 
respectively. (Former P700, which contains information on special 
postage payment systems, is renumbered as P900.)
    Matter pertaining only to Standard Mail in former E611 and E612 is 
consolidated and reorganized into new E610. DMM E620 and E630 are 
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 is changed to ``STD'' (Package Services labels will use 
``PSVC'').
(3) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a are 
changed 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 is 
subject to the 3\1/2\-inch height minimum under C010.) Some parcels may 
be successfully processed on BMC parcel sorters although they do not 
conform to the new 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 apply 
only 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 apply to 
Package Services mail.
(4) Preparation of Bundles (DMM M045, M600)
    The current DMM describes a ``bundle'' as a group of packages 
secured

[[Page 78544]]

together as a unit that equates to a sack. Because the Postal Service 
is not aware of any mailers that currently opt to prepare bundles on 
pallets, the provision in M045.3.0 that contains an option to prepare 
bundles on pallets is removed. The provisions for preparing packages on 
pallets will 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 removing the options to prepare bedloaded bundles under DMM 
M610.6.0 and M620.6.0.
(5) Machinable Parcel Barcoded Discount (DMM C850, E610, E620, P600)
    The new machinable parcel barcoded discount of $0.03 will apply to 
machinable parcels (as defined in DMM C050) for which the residual 
shape surcharge (RSS) surcharge 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 entered at a BMC. 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 is not permitted; use of metered 
postage is permissible only if exact postage is affixed to each piece 
in the mailing; and use of permit imprints is permitted only under a 
manifest mailing system (P910).
(6) Special Services With Standard Mail (DMM E610, P600)
    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 is not eligible for any special services. Mail 
prepared with detached address labels under A060 and mail using Bulk 
Parcel Return Service (BPRS) also are not eligible for any special 
services.
    Mailpieces for which one or more of these special services are 
requested must bear a return address under A010 and must 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 must pay postage and 
fees through a manifest mailing system (P910).
    For electronic option Delivery Confirmation, the following postage 
payment requirements 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 final rule). However, if Delivery 
Confirmation is not requested for all pieces in the mailing, or if the 
pieces are not of 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 
DMM S918.1.5).
    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 are not permitted for use with return receipt for 
merchandise.
(7) Maximum Weight Limit for Automation Heavy Letters (DMM C810.2.3)
    The maximum weight for heavy letters that may qualify for 
automation letter rates also will be 3.3 ounces (.2063 pound).
(8) Barcodes on Automation Flats (DMM C840.3.0)
    DMM C840.3.0 has been revised to allow application of two POSTNET 
barcodes on the address side of flat-size automation rate pieces 
provided certain conditions are met.
(9) Permissible Use of Electronic Option Delivery Confirmation With 
Standard Mail Parcels Enclosed in an Express Mail or Priority Mail Drop 
Shipment (DMM S070 and S500.3.0)
    DMM S070 and S500.3.0 are amended to provide for use of electronic 
Delivery Confirmation with Standard Mail parcels enclosed in Priority 
Mail Drop Shipment or Express Mail Drop Shipment mailings.

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

a. Name Change and DMM Restructuring
    The name of this mail class will change from ``Standard Mail (B)'' 
to ``Package Services.'' Package Services includes Parcel Post 
(including Parcel Select), Bound Printed Matter, Media Mail (formerly 
Special Standard Mail), and Library Mail.
    The standards in current DMM sections C600, D600, M600, E600, P600, 
and R600 that pertain to Package Services have been moved to new 
sections under DMM C700, D700, E700, M700, P700, and R700. Former P700, 
which contains information on special postage payment systems, is 
renumbered as P900.
    The standards for Package Services contained in current DMM E611 
and E613 are consolidated and reorganized into new E710. Current DMM 
E630 and E650, which contain eligibility standards for Package 
Services, are moved into new DMM E700. Each of the

[[Page 78545]]

four subclasses of Package Services mail has its 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 mail for destination entry rates is moved to DMM E750. Current 
DMM M630 is 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, irregular, and 
nonmachinable 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, may 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 will 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 are subject to their 
respective single-piece or 5-digit rates depending upon whether the 
500-piece minimum quantity requirement for the 5-digit rates is met for 
each subclass. Mailers must request authorization to use this 
preparation method and pay postage using permit imprints under a 
manifest mailing system agreement. See E753 for a full description of 
the requirements and rate applicability.

7. Parcel Post

a. Parcel Post Rate Highlights
    Parcel Post rates will increase by an average of 2.7%. The 
nonmachinable surcharge for Inter-BMC Parcel Post will increase from 
$1.65 to $2.00 per parcel. The Parcel Post Origin BMC Presort and BMC 
Presort discounts will increase from $0.57 to $0.90 per piece and from 
$0.22 to $0.23 per piece, respectively. The barcoded discount for 
qualifying Parcel Post (including Parcel Select) machinable parcels 
will remain at $0.03 per piece. The annual destination entry fee for 
Parcel Select will increase from $100 to $125.
b. Parcel Post Rate Structure
    Pieces weighing less than 16 ounces are now eligible for Parcel 
Post (including Parcel Select) rates. A one-pound rate is added. The 
rates for a piece weighing one pound or less and the rates for a piece 
weighing more than one pound but not more than 2 pounds are the same. A 
$1.35 nonmachinable surcharge for Intra-BMC Parcel Post and a $1.45 
nonmachinable surcharge for DBMC Parcel Select are added.
c. Parcel Post Mail Preparation Changes
(1) Rate Markings (DMM M012 and M710)
    There are no changes to the marking requirements for Parcel Post 
and Parcel Select.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M710)
    The abbreviation ``STD'' or ``STD B'' on the contents line of sack 
and pallet labels for Parcel Post (including Parcel Select) is changed 
to ``PSVC'' (an abbreviation for Package Services). Labels for 5-digit 
sacks and pallets prepared to qualify for Parcel Select DSCF and DDU 
rates are 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 will also read ``PSVC PARCELS 5D.''
(3) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a are 
changed 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 is 
subject to the 3\1/2\-inch height minimum under C010.) (The previous 
minimum weight was 8 ounces unless certain other conditions were met.) 
Some parcels may be successfully processed on BMC parcel sorters 
although they do not conform to the machinability standards in new 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 applies only 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 apply to 
Standard Mail.
(4) Machinable Parcel Preparation Requirements (DMM M045 and M710)
    The rules for sacking and palletizing Parcel Post (including Parcel 
Select) 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 have a minimum volume requirement of 10 pieces 
or 20 pounds.
(5) Postage Payment (P700)
    P700 is clarified to indicate that precanceled stamps must not be 
used for postage payment of any Parcel Post or Parcel Select mail, 
including matter at single-piece rates.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights
    The Postal Service has calculated that Bound Printed Matter (BPM) 
rates will increase by an average of 9.8%. New destination entry 
discounts for Presorted rate and Carrier Route rate mailings of Bound 
Printed Matter are available to encourage the deposit of mail at the 
destination BMC, SCF, or delivery unit. There is an annual destination 
entry mailing fee for mail entered at destination entry rates of $125. 
The barcoded discount for qualifying Presorted Bound Printed Matter 
machinable parcels will remain at $0.03 per piece.
b. Bound Printed Matter Rate Structure
    The local zone rate category has been eliminated for Bound Printed 
Matter. Destination entry rates for Presorted and Carrier Route Bound 
Printed Matter entered at destination BMCs, SCFs, and delivery units 
are provided. To qualify for destination entry rates mailers must 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 
are eligible for Bound Printed Matter rates; however, there are no rate 
categories for pieces less than 1 pound for single-piece, Presorted, 
and Carrier Route mail. Therefore, single-piece Bound Printed Matter 
that weighs less than 1 pound will be charged the 1-pound rate (which 
is the same as the 1.5-pound rate), and

[[Page 78546]]

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)
    There are two changes to the marking requirements for Bound Printed 
Matter. The first allows mailers to use the abbreviation ``BPM'' as the 
basic (subclass) marking that must appear in the postage area on each 
piece. The second prohibits mailers from using 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'' are no longer applicable as class of mail descriptions for 
Bound Printed Matter. Mailers will 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)
    The abbreviations ``STD'' or ``STD B'' on the contents line of sack 
and pallet labels for Bound Printed Matter are changed to ``PSVC'' (an 
abbreviation for Package Services).
(3) Address Matching Requirements for Presorted Bound Printed Matter 
(DMM E712)
    A new requirement is added 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 on the postage 
statement that this standard has been met when the mail is presented to 
the USPS. This standard applies to each 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 are 
changed 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 is 
subject to the 3\1/2\-inch height minimum under C010.) (The previous 
minimum weight was 8 ounces unless certain other conditions were 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 applies only 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 apply to 
Standard Mail.
(5) Sortation for Sacked Presorted Rate Bound Printed Matter (DMM M722)
    (a) General. All flats and all irregular parcels that weigh less 
than 10 pounds must be prepared in packages prior to sacking. 
Machinable parcels are still placed directly in sacks without 
packaging, and irregular parcels weighing 10 pounds or more must be 
placed into sacks without packaging. Irregular parcels weighing 10 
pounds or more that are placed directly in sacks must be individually 
enveloped, be placed in a full-length sleeve or wrapper, or be 
polywrapped. The provisions for preparing sacks to a particular presort 
destination based on a 1,000 cubic inch minimum are deleted.
    (b) Flats. For flats prepared in sacks, mailers are 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. 
``Whichever occurs first'' means a mailing of identical-weight pieces 
weighing one pound or less must be packaged using the 10-piece package 
minimum, and those that weigh more must be prepared using the 10-pound 
package minimum. (See M722 for information concerning mailings of 
nonidentical weight pieces.) The maximum weight of any package is 20 
pounds, except that 5-digit packages placed in 5-digit sacks may weigh 
up to 40 pounds. This allows packages prepared in other than 5-digit 
sacks to be processed on small parcel and bundle sorters (SPBSs). Each 
physical package is required to contain at least 2 addressed pieces 
except for mixed ADC packages.
    These packages are required to be placed in sacks whenever there 
are 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. ``Whichever occurs first'' means 
that if the individual pieces in the mailing weigh one pound or less 
they must be sacked whenever there are 20 or more pieces to a sack 
destination, and individual pieces that weigh more than one pound must 
be sacked when there are 20 or more pounds to a sack destination. (See 
M722 for information concerning mailings of nonidentical weight 
pieces.)
    (c) Irregular Parcels That Each Weigh Less Than 10 Pounds. For 
Presorted irregular parcels, mailers are required to prepare the mail 
in packages if the individual pieces weigh less than 10 pounds. 
Packages must be prepared whenever there are at least 10 pieces or 10 
pounds to a presort destination, whichever occurs first. ``Whichever 
occurs first'' means a mailing of identical-weight pieces weighing one 
pound or less must be packaged using the 10-piece package minimum, and 
those that weigh more must be prepared using the 10-pound package 
minimum. (See M722 for information concerning mailings of nonidentical 
weight pieces.) The package destinations are the same as for flat-size 
pieces (5-digit, 3-digit, ADC, and mixed ADC). Mixed ADC packages may 
contain fewer than 10 pieces or 10 pounds of mail.
    Sortation to ADCs is made using DMM L004 instead of L603, and mixed 
ADC sacks are labeled using DMM L004 instead of L604. The maximum 
weight of any package is 20 pounds, except that 5-digit packages placed 
in 5-digit sacks may weigh up to 40 pounds. Each physical package is 
required to contain at least 2 addressed pieces except for mixed ADC 
packages.
    There is one exception to the packaging requirement. Mailers of 
irregular parcel BPM prepared in 5-digit sacks, may at their option, 
prepare such pieces loose in sacks without physical packaging provided 
the number of pieces in the sack meets the minimum package size and 
sack size requirements and the pieces in the 5-digit sack(s) are 
individually wrapped or enveloped.
    Packages must be placed in 5-digit, 3-digit, optional SCF, and ADC 
sacks whenever there are 10 or more pieces or 20 or more pounds, 
whichever occurs first, for a sack destination. Remaining packages must 
be placed in mixed ADC sacks. ``Whichever occurs first'' means that if 
the individual pieces in the mailing weigh two pounds or less they must 
be sacked whenever there are 10 or more pieces to a sack destination, 
and individual pieces weighing more than two pounds must be sacked when 
there are 20 or more pounds to a sack destination. (See M722 for 
information concerning mailings of nonidentical weight pieces.)
    (d) Irregular Parcels That Each Weigh 10 or More Pounds. Presorted 
irregular parcels that each weigh 10 or more pounds are not packaged, 
but must be placed in 5-digit, 3-digit, optional SCF, and ADC sacks 
whenever there are 20 or more pounds for a sack destination.

[[Page 78547]]

Remaining pieces are placed in mixed ADC sacks. Sortation to ADCs is 
made using DMM L004 instead of L603, and mixed ADC sacks are labeled 
using DMM L004 instead of L604. Irregular parcel-size pieces that each 
weigh 10 or more pounds are required to be individually enveloped, be 
placed in a full-length sleeve or wrapper, or be polywrapped prior to 
sacking.
    (e) Machinable Parcels. For machinable parcels, sacks are prepared 
when there are at least 10 pieces or 20 pounds, whichever occurs first, 
for a required or optional sack level. The option to use 1,000 cubic 
inches as a minimum sacking criterion is deleted. The new ``whichever 
occurs first'' criterion means that if the individual pieces in the 
mailing weigh two pounds or less they must be sacked whenever there are 
10 or more pieces to a sack destination, and individual pieces weighing 
more than two pounds must be sacked when there are 20 or more pounds to 
a sack destination. (See M722 for information concerning mailings of 
nonidentical weight pieces.) In addition, an optional ASF sack 
sortation level using DMM L602 is added for pieces that are entered at 
DBMC rates.
(6) Sortation for Sacked Carrier Route Rate Bound Printed Matter (DMM 
M020, M723)
    (a) Flats. 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 is changed to 
require a minimum of 10 pieces or 10 pounds of mail, whichever occurs 
first, prepared in a package or packages for the same carrier route. 
``Whichever occurs first'' means a mailing of identical-weight pieces 
weighing one pound or less must be packaged using the 10-piece package 
minimum, and those that weigh more than one pound must be prepared 
using the 10-pound package minimum. (See M722 for information 
concerning mailings of nonidentical weight pieces.)
    In addition, the maximum weight of any flat-size package is 40 
pounds. Each physical package must 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 may 
consist of a single addressed piece provided that all other packages to 
that carrier route destination contained at least two addressed pieces 
and that the total group of pieces to that carrier route meets the 
applicable Carrier Route rate eligibility minimum in E712 (for flats, 
10 pieces or 10 pounds, whichever occurs first).
    Packages of flat-sized mail must be sacked for an individual 
carrier route whenever there are at least 20 pieces or 20 pounds of 
mail for a carrier route, whichever occurs first. The new ``whichever 
occurs first'' criterion means that if the individual pieces in the 
mailing weigh one pound or less they must be sacked whenever there are 
20 or more pieces to a sack destination, and individual pieces weighing 
more than one pound must be sacked when there are 20 or more pounds to 
a sack destination. (See M722 for information concerning mailings of 
nonidentical weight pieces.)
    Remaining carrier route packages must be sacked in 5-digit carrier 
routes sacks or, at the mailer's option, sacked to 5-digit scheme 
carrier routes sacks using L001.
    (b) Irregular Parcels Weighing Less Than 10 Pounds Each. For 
mailings of Carrier Route irregular parcels that each weigh less than 
10 pounds, mailers must prepare the mail in packages prior to sacking. 
A package must be prepared whenever there are at least 10 pieces or 20 
pounds of mail to an individual carrier route, whichever occurs first. 
The new ``whichever occurs first'' criterion means that if the 
individual pieces in the mailing weigh two pounds or less they must be 
packaged whenever there are 10 or more pieces to a carrier route 
destination, and individual pieces weighing more than two pounds must 
be packaged when there are 20 or more pounds to a carrier route 
destination. (See M722 for information concerning mailings of 
nonidentical weight pieces.)
    The maximum weight of any package is 40 pounds. Each physical 
package is 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 may consist of a 
single addressed piece provided that all other packages to that carrier 
route destination contain at least two addressed pieces and that the 
total group of pieces to that carrier route meets the applicable 
Carrier Route rate eligibility minimum in E712 (for irregular parcels 
weighing less than 10 pounds, 10 pieces or 20 pounds, whichever occurs 
first).
    Carrier route packages of irregular parcels must be placed in 
direct carrier route sacks when there are 10 or more pieces or 20 or 
more pounds to a carrier route, whichever occurs first. The new 
``whichever occurs first'' criterion means that if the individual 
pieces in the mailing weigh two pounds or less they must be sacked 
whenever there are 10 or more pieces to a sack destination, and 
individual pieces weighing more than two pounds must be sacked when 
there are 20 or more pounds to a sack destination. (See M722 for 
information concerning mailings of nonidentical weight pieces.) Carrier 
route packages that cannot be placed in direct carrier route sacks must 
be placed in 5-digit carrier routes sacks. Preparation of 5-digit 
scheme carrier routes sacks for irregular parcels is not permitted.
    (c) Irregular Parcels That Each Weigh 10 or More Pounds. For 
mailings of Carrier Route irregular parcels that each weigh 10 or more 
pounds, the mail is not prepared in packages, but must be placed only 
in direct carrier route sacks that each contain a minimum of 20 pounds 
of mail. Smaller volumes in a carrier route sack are not permitted.
    (d) Machinable Parcels. Machinable parcels will be permitted to 
qualify for Carrier Route Bound Printed Matter rates if placed in 
direct carrier route sacks that each contain a minimum of 10 pieces or 
20 pounds of mail, whichever occurs first. (Machinable parcels prepared 
on pallets under M045 are not eligible for Carrier Route Bound Printed 
Matter rates.) The new ``whichever occurs first'' criterion means that 
if the individual pieces in the mailing weigh two pounds or less they 
must be sacked whenever there are 10 or more pieces to a sack 
destination, and individual pieces that weigh more than two pounds must 
be sacked when there are 20 or more pounds to a sack destination. (See 
M722 for information concerning mailings of nonidentical weight 
pieces.) Smaller volumes in a sack are not permitted.
    (e) Residual Pieces. The provisions for marking and sortation of 
residual pieces that do not qualify for the Carrier Route Bound Printed 
Matter rates have changed. Such pieces may no longer be sorted to 
carrier routes and may not bear the ``Carrier Route Presort'' marking. 
Such residual pieces are required to be marked and sorted in accordance 
with the requirements for Presorted rate mailings and will continue to 
qualify for the Presorted rates (see M723.1.5).
(7) Preparation of Packages on Pallets (DMM M040 and M045)
    Flats prepared as packages on pallets are permitted to use optional 
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, 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

[[Page 78548]]

prepared for Presorted rate mail (optional 5-digit scheme and required 
5-digit pallets).
    For irregular parcels prepared as packages on pallets, mailers must 
prepare co-palletized Carrier Route and Presorted mail on the same 5-
digit pallet. Scheme sortation is not permitted for packages of 
irregular parcels on pallets.
    For flats and irregular parcels, packages are required to be made 
to a required package destination (carrier route, 5-digit, 3-digit, 
ADC) whenever there are 10 or more pieces or 10 or more pounds for a 
presort destination, whichever occurs first, except that the last 
package to a presort destination may weigh less than 10 pounds. 
``Whichever occurs first'' means a mailing of identical-weight pieces 
weighing one pound or less must be packaged using the 10-piece package 
minimum, and those that weigh more must be prepared using the 10-pound 
package minimum. (See M722 for information concerning mailings of 
nonidentical weight pieces.) When there are at least 10 pieces, but 
fewer than 10 pounds for a presort destination, the pieces must be 
prepared in a single physical package.
    ADC packages must be prepared using DMM L004 instead of L603. The 
maximum physical package size is 20 pounds except as follows. For 
Presorted rate mail, 5-digit packages may 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 may weigh up to 40 
pounds if they are placed on 5-digit scheme carrier routes, or 5-digit 
carrier routes pallets, and irregular parcel-size carrier route 
packages may weigh up to 40 pounds if they are placed on a 5-digit 
pallet. Each physical package is required to contain at least 2 pieces.
    When individual pieces weigh 10 or more pounds, they cannot be 
prepared as packages on pallets (except in those instances where 40-
pound packages are permitted as described above). Such pieces that 
weigh 10 or more pounds are 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 
allows the packages to be processed on small parcel and bundle sorters 
(SPBSs).
(8) PAVE Certification and Package Reallocation
    A requirement for the use of standardized documentation or Presort 
Accuracy Validation and Evaluation (PAVE)-certified software for Bound 
Printed Matter has not been added to the standards. However, the Postal 
Service plans to develop PAVE tests for Bound Printed Matter in the 
future. At that time, standardized documentation requirements will be 
developed and a Federal Register proposed rule to require either use of 
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 flats is not available at this 
time. 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 previous DMM 
M630.7.0 have been 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 implementing 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, 
these final sortation rules eliminate the option to prepare bedloaded 
bundles and allow mailers to prepare bedloaded packages only for mail 
that is prepared for and entered at the DDU rates (because DDU rate 
mail must be unloaded by the mailer). 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 E751.1.3, 
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 E751.1.3.
    Flats or irregular parcels in an ADC sack or in a palletized ADC 
package are 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 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 E751.1.3. Mailers who opt to claim 
the DBMC rates for mail in mixed ADC sacks are 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 (one set of mixed 
ADC sacks containing packages qualifying for DBMC rates and one set of 
mixed ADC sacks for packages that do not qualify for DBMC rates). For 
this purpose, DMM E650 and E752 specify that mailers assign ADC 
packages to the respective qualifying or nonqualifying mixed ADC sacks 
based on the ``label to'' ZIP Code for the ADC. For mixed ADC packages, 
separate mixed ADC packages must be prepared based on the individual 
addresses on the pieces. That is, a mixed ADC package(s) for pieces 
within the ASF or BMC entry point must be prepared and a separate mixed 
ADC package(s) for pieces outside the entry ASF or DBMC area (using 
either Exhibit E650.5.1 or E751.1.3) must be prepared.
    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 to be eligible for DBMC rates for mail with a 
3-digit ZIP Code prefix within the ASF service area in Exhibit 
E751.1.3. 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 E751.1.3 
would be eligible for DBMC rates (mail for 3-digit ZIP Codes served by 
an ASF in Exhibit E751.1.3 sorted to the BMC pallet would not be 
eligible for DBMC rates, nor would mail for 3-digit ZIP Codes that do 
not appear in Exhibit E751.1.3).

[[Page 78549]]

    Machinable parcels 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 only 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 E751.1.3.
(11) Destination Sectional Center Facility (DSCF) Rates (DMM E752)
    Destination Sectional Center Facility (DSCF) rates 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 may 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 may 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 may claim DSCF 
rates under the conditions described above. Irregular parcels on 5-
digit, 3-digit, SCF, and ASF pallets may claim DSCF rates under the 
conditions described above.
    Machinable parcels in direct carrier route sacks, in 5-digit sacks, 
or on 5-digit pallets may claim DSCF rates under the conditions 
described above. Machinable parcels prepared to claim Carrier Route 
rates are eligible for DSCF rates only when prepared in direct carrier 
route sacks (machinable parcels qualify for Carrier Route rates only 
when prepared in direct carrier route sacks). Presorted rate machinable 
parcels on 5-digit pallets may claim DSCF rates under the conditions 
described above. Note that palletized machinable parcels for the 5-
digit ZIP Codes listed in Exhibit E751.6.0 must be entered at the 
applicable BMC to claim DSCF rates.
    For mailings prepared for the DSCF rate in pallet boxes, the height 
of the pallet box may not exceed 60 inches (excluding the pallet) as is 
currently required for Parcel Select DSCF rate mail (DMM M041.4.2).
(12) Destination Delivery Unit (DDU) Rates (DMM E752)
    New 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 Presorted Bound Printed Matter, DDU rates may be 
claimed only for individual pieces that weigh more than one pound. 
(This minimum weight may increase in the near future dependent on AFSM 
100 machinability requirements.) To qualify for DDU rates, Presorted 
rate flats must be prepared in 5-digit sacks, or on optional 5-digit 
scheme or required 5-digit pallets, or be prepared as bedloaded 5-digit 
packages. The Drop Shipment Product must be used to determine the 
correct destination entry facility for the 5-digit destination of the 
container. If the Drop Shipment Product lists multiple facilities for a 
single 5-digit ZIP Code, the mailer must inquire about the correct drop 
site when contacting the DDU to schedule an appointment.
    For flat-size Carrier Route Bound Printed Matter, DDU rates may be 
claimed for mail 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. There is no minimum weight for 
individual flat-size pieces to qualify for Carrier Route rate flat-size 
pieces. Carrier Route rate flat-size mail must be entered at the 
facility where the carrier cases flat-size mail as shown in the Drop 
Shipment Product.
    For irregular parcels of Carrier Route Bound Printed Matter, DDU 
rates may be claimed for mail prepared in carrier route and, for pieces 
each weighing less than pounds only, in 5-digit carrier routes sacks. 
For irregular parcels of Presorted Bound Printed Matter, DDU rates may 
be claimed for mail prepared in 5-digit sacks or on 5-digit pallets. 
Irregular parcels prepared as bedloaded carrier route packages or 
bedloaded 5-digit packages also are eligible for DDU rates.
    For machinable parcels of Carrier Route Bound Printed Matter, DDU 
rates are available for carrier route parcels prepared in direct 
carrier route sacks. For machinable parcels of Presorted Bound Printed 
Matter, DDU rates are available for parcels prepared in 5-digit sacks 
or on 5-digit pallets.
    To claim the DDU rates, both irregular and machinable parcels must 
be entered at the facility that delivers parcels to the addresses 
appearing on the deposited pieces. Mailers must use the Drop Shipment 
Product to determine the location of the 5-digit delivery facility and 
whether it can handle pallets. When the Drop Shipment 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 is the facility at which 
the DDU mail must be entered, 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, 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. Mailers who palletize machinable and irregular parcels must 
also determine if the 5-digit facility is able to handle pallets using 
the Drop Shipment Product. If the 5-digit facility is unable to 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.
(13) Destination Entry Mail Preparation--Plant-Verified Drop Shipment 
(PVDS) (DMM E752)
    Pieces must 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 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. This means that a mailer may enter 
fewer than 300 pieces per Presorted or Carrier Route mailing at

[[Page 78550]]

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)
    The preparation requirements for use of DALs with Bound Printed 
Matter mailings are revised. Mailers must prepare Bound Printed Matter 
with DALs either on pallets or in sacks as described in DMM A060.
    When prepared on pallets, mailers may enter Bound Printed Matter 
prepared with DALs at any post office provided only 5-digit pallets are 
prepared and if the following additional requirements and restrictions 
are met. The 5-digit pallets must 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 are not required. The mail must not be prepared 
on pallets when the Drop Shipment 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 Shipment 
Product under the provisions for the DDU rate in E752. (For delivery 
units that cannot handle pallets, mail with DALs is required to be 
prepared in sacks.) The trays or cartons of DALs must be prepared under 
A060.3.0 and placed on the same pallet as the Bound Printed Matter. In 
addition, the Bound Printed Matter and the trays of DALs must be 
stretch-wrapped together as one unit on the pallet.
    For mail prepared with DALs in sacks, the matter must be prepared 
in 5-digit sacks and must be entered at the destination delivery unit. 
The destination delivery unit must be determined using the Drop 
Shipment Product under the provisions for the DDU rate in DMM E752. The 
DALs must be packaged under A060.3.0 and presented to the destination 
delivery unit with the accompanying items to be distributed with the 
DALs. The standards for DALs are amended to clarify that items mailed 
with DALs may not be combined with any special services (new A060.1.7). 
In addition, the standards for DALs in A060.4.2 are amended to specify 
that an undeliverable-as-addressed DAL is disposed of as waste, and the 
accompanying item is treated as specified by the mailer under A060.4.1.
(15) Ancillary Service Endorsements
    The handling of undeliverable-as-addressed Bound Printed Matter 
pieces that are not mailed with a special service or an ancillary 
service endorsement will be the same as for Standard Mail. 
Undeliverable-as-addressed Bound Printed Matter pieces mailed with no 
special service (e.g., Delivery Confirmation, insured), and with no 
ancillary service endorsement, will be disposed of by the USPS as waste 
at the delivery unit. Mailers of Bound Printed Matter who want to have 
their undeliverable-as-addressed pieces forwarded and returned must 
choose the appropriate ancillary service endorsement and print it on 
their pieces to obtain such service. There are no other changes to the 
treatment of undeliverable-as-addressed Package Services mail (except 
for Bound Printed Matter prepared with detached address labels under 
DMM A060.4.2 as described earlier.)
(16) Postage Payment
    DMM P700 is amended to clarify that precanceled stamps may not be 
used for payment of Bound Printed Matter postage.

9. Media Mail (Formerly Special Standard Mail)

a. Media Mail Rate Highlights
    Media Mail (formerly Special Standard Mail) rates will increase by 
an average of 6.3%. The barcoded discount for qualifying Media Mail 
remains at $0.03 per piece. There are separate rate schedules for Media 
Mail and Library Mail as the shared rate structure is discontinued. The 
annual presort mailing fee for Media Mail increases to $125.
b. Media Mail Rate Structure
    There are 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 renamed ``Media Mail,'' and the marking 
that is required to appear on each piece is changed from ``Special 
Standard'' to ``Media Mail.'' There is a phase-in period until January 
1, 2002, 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 is changed to 
``PSVC'' (an abbreviation for Package Services).
(3) Clarification of Preparation Requirements
    Former M630.4.0 provided for preparing Media Mail as bedloaded 
bundles under former M630.7.0. However, former M630.7.0 provided only 
for preparation of Bound Printed Matter as bedloaded bundles, and the 
eligibility requirements for the Media Mail rates in former E630.4.0 
provided only for preparation of Media Mail 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 are deleted from M730 that contains the requirements for 
presorted Media Mail.
    Former E630.4.0 (renumbered as E713) provided for preparing 5-digit 
and BMC bundles of Media Mail on pallets. The terminology in new E713 
is changed to provide for ``packages'' of Media Mail on pallets. 
Furthermore, the reference in former M630.4.0 that referred to 
preparing mail according to the machinable parcel preparation rules is 
not contained in new M730. There were no provisions for such 
preparation to qualify for presorted Media Mail rates in former 
E630.4.0, and such provisions were not added to new 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 is 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 is retained.
(4) Postage Payment (DMM P700)
    DMM P700 is amended to clarify that precanceled stamps may not be 
used for payment of Media Mail postage.

10. Library Mail

a. Library Mail Rate Highlights
    Library Mail rates will increase by an average of 4.9%. The 
barcoded discount for qualifying Library Mail remains at $0.03 per 
piece. Separate rate schedules are implemented for Media Mail and 
Library Mail as the shared rate structure is discontinued. The annual 
presort mailing fee for Library Mail is increased to $125.

[[Page 78551]]

b. Library Mail Rate Structure
    There are 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 is being discontinued. Matter mailed at Library Mail rates will be 
required to use only the marking ``Library Mail.'' There is a phase-in 
period until January 1, 2002, 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 is 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 is deleted 
(see M740).
(4) Postage Payment (DMM P700)
    DMM P700 is amended to clarify that precanceled stamps may not be 
used for payment of Library Mail postage.

11. Special Services and Other Services

a. Address Changes for Election Boards (DMM A910)
    The fee will increase from $0.17 to $0.23 for each address card. 
There are no classification changes for this service. See DMM 
R900.12.3.
b. Address Correction Notifications (DMM F030)
    The manual (hard-copy) fee will increase from $0.50 to $0.60 for 
each notification. There is no change to the automated (electronic) fee 
notification (currently $0.20 each). There are no classification 
changes for this service. See DMM R900.1.0.
c. Bulk Parcel Return Service (DMM S924)
    The per piece charge will decrease from $1.75 to $1.62 for each 
piece returned under Bulk Parcel Return Service (BPRS). The annual BPRS 
permit fee will increase from $100 to $125. A new annual accounting fee 
of $375 will be required for BPRS. This fee covers the costs of 
providing BPRS account maintenance services to mailers and is 
consistent with accounting fees charged for other special services. 
Current BPRS permit holders will have until February 5, 2001, to pay 
their initial annual accounting fee. See DMM R900.3.0.
    No special services are available for pieces returned through BPRS.
d. Business Reply Mail
(1) Business Reply Mail (BRM) (DMM S922)
    The annual business reply mail (BRM) permit fee will increase from 
$100 to $125.
    The per piece charge for basic BRM (BRM without an annual 
accounting fee) will 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) will increase from $0.08 to $0.10. This per 
piece charge is in addition to single-piece First-Class Mail (or 
Priority Mail) postage. The annual accounting fee, required for high-
volume BRM, will increase from $300 to $375.
    A provision in the DMCS that required permit holders to maintain an 
advance deposit account solely for the use of business reply mail has 
been deleted. Therefore, permit holders will be able to maintain a 
single advance deposit account from which postage, fees, and per piece 
charges for multiple items can be deducted (e.g., BRM, QBRM, 
merchandise return service, incoming shortpaid mail, address correction 
notices, etc.). If permit holders request separation of charges, then 
they must pay an annual accounting fee for each separation.
(2) Qualified Business Reply Mail (QBRM) (DMM E150, S922)
    The discounted automation rate for qualified business reply mail 
(QBRM) letters will increase from $0.30 to $0.31 as described under the 
First-Class Mail Summary. The discounted automation rate for QBRM cards 
will decrease from $0.18 to $0.17. The annual accounting fee, required 
to participate in QBRM, will increase from $300 to $375.
    QBRM will be split into two categories with different per piece 
charges to mirror the current fee structure of regular BRM. The first 
category is the existing classification and will be called ``basic'' 
QBRM. The per piece charge for basic QBRM will remain at $0.05. This 
per piece charge is in addition to the lower QBRM First-Class Mail 
postage listed in R100. See DMM R900.4.3.
    A new classification, called ``high-volume'' QBRM, recognizes that, 
for large volume users, some costs are relatively fixed, rather than 
varying with marginal volume. High-volume QBRM includes a lower per 
piece charge and requires payment of a new quarterly fee in addition to 
the annual accounting fee. The per piece charge for high-volume QBRM 
will be $0.01. This per piece charge is in addition to the discounted 
automation QBRM First-Class Mail rate listed in R100. The quarterly fee 
will be $1,800 per quarter (in addition to the $375 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. See DMM R900.4.4.
    Quarterly fees 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 for periods before the 
quarterly fee was paid.
(3) Bulk Weight Averaged Nonletter-Size Business Reply Mail (DMM S922)
    Language has been added to clarify that the monthly maintenance fee 
applies only to bulk weight averaged nonletter-size BRM. The per piece 
charge will remain at $0.01. The maintenance fee will remain at $600 
per month. The annual business reply mail permit fee will increase from 
$100 to $125. The annual accounting fee, required to participate in 
weight averaged nonletter-size BRM, will increase from $300 to $375. 
See DMM R900.4.5.
e. Carrier Sequencing of Address Cards (DMM A920)
    The fee will 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 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 will increase from $0.60 to $0.75. The firm

[[Page 78552]]

mailing book fee will remain at $0.25; the fee for an additional copy 
of a certificate of mailing will increase from $0.60 to $0.75.
    For bulk quantities, the fee for one certificate of mailing (for 
the first 1,000 pieces) will increase from $3.00 to $3.50. There is no 
change to the fee for a certificate for each additional group of 1,000 
pieces (currently $0.40). The fee for an additional copy of a bulk 
certificate of mailing will increase from $0.60 to $0.75.
    There are no classification changes for this service. See DMM 
R900.6.0.
g. Certified Mail (DMM S912)
    The fee will increase from $1.40 to $1.90 in order to cover newly 
estimated costs for this service. See DMM R900.7.0.
h. Collect on Delivery (COD) (DMM S921)
    Fees will increase by $.50 for every $100 value level. The maximum 
COD value level will increase from $600 to $1,000, with a fee increment 
of $1.00 for each $100 increment. The fees for registered COD, the 
notice of nondelivery, and the alteration of COD charges (Form 3849-D) 
will remain at current levels. The money order limit will remain at 
$700; therefore, if a recipient pays in cash for COD amounts over $700, 
then the Postal Service 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 will increase from $0.20 to $0.25. In 
conjunction, the minimum charge per list for lists with fewer than 30 
addresses will increase from $7.00 to $7.50. There are no 
classification changes 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) will increase 
from $0.35 to $0.40. The fee for retail option Package Services 
Delivery Confirmation will decrease from $0.60 to $0.50. There will 
continue to be no fee for electronic option Delivery Confirmation for 
Priority Mail. The fee for electronic option Delivery Confirmation for 
Package Services will decrease from $0.25 to $0.12.
    Electronic option Delivery Confirmation service will be extended to 
Standard Mail parcels that are subject to the residual shape surcharge 
(both Regular and Nonprofit subclasses). Delivery Confirmation service 
will not be available for the Enhanced Carrier Route or Nonprofit 
Enhanced Carrier Route subclasses. No retail option will be available 
for Standard Mail. The fee for electronic option Delivery Confirmation 
for Standard Mail will be $0.12 per piece, which mirrors the new fee 
for Package Services. See DMM R900.9.0.
k. Express Mail Insurance (DMM S500)
    Fees for Express Mail insurance will increase. There are no 
classification changes for this service. See DMM R900.10.0.
l. Insurance (DMM S913)
    Fees for insurance will increase for all value levels. The fee for 
unnumbered insurance (items valued at $50 or less) will increase from 
$0.85 to $1.10. Separate bulk discounts for unnumbered and numbered 
insurance have been added. In addition, bulk insurance will be 
available for Standard Mail parcels that are subject to the residual 
shape surcharge (both Regular and Nonprofit subclasses). Bulk insurance 
will not be available for the Enhanced Carrier Route or Nonprofit 
Enhanced Carrier Route subclasses. Regular insurance is not available 
for Standard Mail. See DMM R900.11.0.
    The Postal Service has removed the requirement that insured pieces 
sent at First-Class Mail and Priority Mail rates be marked ``Standard 
Mail Enclosed.'' In addition, merchandise return service (MRS) 
customers (those who use MRS labels to return a parcel to the permit 
holder) will be permitted to add insurance to an MRS parcel at their 
own discretion and expense.
m. Mailing Fees
    Presort mailing fees and destination entry mailing fees for all 
classes of mail will increase. Specific fees and classification changes 
are included under the separate summaries for each class of mail.
n. Merchandise Return Service (DMM S923)
    The per piece (transaction) fee for parcels returned to the permit 
holder via merchandise return service (MRS) will be eliminated. A new 
annual accounting fee of $375 is established for MRS. This fee covers 
the costs of accounting services provided to permit holders and is 
consistent with accounting fees charged for other special services. 
Current MRS permit holders have until February 5, 2001, to pay their 
initial annual accounting fee. A separate annual accounting fee must be 
paid for each separation of charges and separate billing provided. This 
makes the application of the new annual accounting fee consistent with 
Business Reply Mail. See DMM R900.13.0.
    If the permit holder has not specified insurance on the MRS label, 
then customers (those who use merchandise return service labels to 
return a parcel to the permit holder) will be permitted to add 
insurance to a MRS parcel at their own discretion and expense. No other 
special services may be added by the sender. Previously, insurance 
could be added to a parcel only if specified by the permit holder. The 
Postal Service has removed the requirement that MRS parcels sent at 
First-Class Mail and Priority Mail rates be marked ``Standard Mail 
Enclosed.''
    Parcels that do not bear a class or rate marking, regardless of 
weight, will be treated as Parcel Post and will be charged Parcel Post 
Inter-BMC/ASF rates.
    These same changes apply to penalty merchandise return service.
o. Money Orders (DMM S020)
    The fee for domestic money orders will decrease from $0.80 to $0.75 
per money order. The fee for APO/FPO money orders will decrease from 
$0.30 to $0.25 per money order. The inquiry fee will remain at $2.75. 
There are no classification changes for this service; the maximum 
amount for a single money order remains at $700. See DMM R900.15.0.
p. Parcel Airlift Service (PAL) (DMM S930)
    There are no 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 will 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 will increase from $8.25 to $10.25 per 
pickup. There are no classification changes for this service. See DMM 
R900.18.0.
s. Post Office Boxes, Caller Service, and Reserve Call Numbers (DMM 
D910 and D920)
    The Postal Rate Commission has approved the Postal Service's 
proposal to restructure post office box fee groups and to establish 
fees for each of the new groups. A nonrefundable fee for each

[[Page 78553]]

key, over two, requested by a customer has been established at $4.00. 
In addition, a $10.00 fee for a lock replacement initiated by a 
customer as been established.
    The new structure for post office boxes aligns post office box fees 
more closely with costs by 5-digit ZIP Code. These costs include 
estimated real estate value of the space used to provide post office 
boxes.
    The Postal Service submits 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. At this time, box 
restructuring is constrained based on current fee groups in order to 
mitigate large fee increases for customers.
    Current post office box customers would not pay the new fees until 
their current box fee period ends. There are no changes to free (Group 
E) box service. Therefore, customers who currently qualify for free box 
service may continue to receive it. See DMM R900.19.0.
    Post offices will be notified of their new cost group via a special 
publication that will be distributed before implementation of new rates 
and fees. Customers will be able to find their new post office box fees 
via their local post office, the Postal Service web site 
(www.usps.com), or by calling 1-800-ASK-USPS and providing the 5-digit 
ZIP Code.
    The caller service fee will increase to $375 for all customers at 
all postal facilities. Caller service fees will no longer be broken out 
according to post office fee groups. The annual call number reservation 
fee will decrease from $36 to $30. See R900.5.0.
    The Postal Service has deleted a provision from the DMCS that 
allowed customers with both a post office box and a regular street 
delivery address served by the same delivery unit to redirect the 
delivery of all of their mail, regardless of how it was addressed, to 
the post office box. This redirection of mail often depends on the 
memory of specific individuals or on an ad hoc handwritten note. The 
net result easily can be delivery of mail in a fashion contrary to a 
customer's intent. The Domestic Mail Manual currently does not contain 
standards related to this provision, although some local post offices 
redirect mail as a favor to customers. The policy of the Postal 
Service, as contained in the Domestic Mail Manual, is to deliver mail 
to the address specified on the mailpiece. Deleting section 921.222 of 
the DMCS is desirable from the point of view of the customer and the 
Postal Service. Customers will still be able to have their mail 
forwarded from one address to another, including a post office box, 
based on current forwarding procedures. Because no standard currently 
exists in the Domestic Mail Manual, no changes are necessary to support 
this DMCS change.
t. Registered Mail (DMM S911)
    All registered mail fees will increase. The incremental fee for 
registered mail per value level will 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 will increase from $0.55 to $0.75. There are 
no classification changes for this service. See DMM R900.20.0.
u. Restricted Delivery (DMM S916)
    The restricted delivery fee will increase from $2.75 to $3.20. 
There are no classification changes for this service. See DMM 
R900.21.0.
v. Return Receipt (DMM S915)
    The regular return receipt fee will increase from $1.25 to $1.50. 
The return receipt for merchandise fee will increase from $1.40 to 
$2.35. The fee for a return receipt after mailing will 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 and 23.0.
    There are two classification changes for return receipt service. 
The first change allows return receipt for merchandise to be combined 
with unnumbered insurance. The second change extends return receipt for 
merchandise service to Standard Mail parcels that are subject to the 
residual shape surcharge (both Regular and Nonprofit subclasses). 
Return receipt for merchandise will not be available for the Enhanced 
Carrier Route or Nonprofit Enhanced Carrier Route subclasses.
w. Shipper Paid Forwarding (DMM F010)
    The Postal Service is establishing 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 is establishing 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 the recipient's signature. 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 fees are $1.25 for electronic option and $1.75 for 
retail option. For Package Services Signature Confirmation, the fees 
are $1.25 for electronic option and $1.75 for retail option. See DMM 
R900.25.0.
y. Special Handling (DMM S930)
    There are no 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 will increase from $70.00 to $73.00 per 1,000 
addresses. There are no classification changes for this service. See 
DMM R900.12.0.

12. On-Site Meter Service (DMM P030)

    The name of the service will change from ``on-site meter settings'' 
to ``on-site meter service.'' The ``single meter'' and ``unscheduled 
appointment'' categories will be replaced with a new ``meter service'' 
category. The ``additional meters'' category will be replaced with a 
``meter reset and/or examined'' category. These categories will 
consolidate similar fees and make the service easier to understand and 
use.
    New fees have been established for these realigned categories. The 
fee for meter service is $31.00. The fee for getting a meter reset and/
or examined is $4.00 per meter. The fee for checking a meter in or out 
of service will decrease from $8.00 to $4.00 per meter. See DMM 
R900.14.0.
    The checking in/out fees will 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 will increase from $0.01 to 
$0.02. The fee for double stamped cards will increase from $0.02 to 
$0.04, and the fee for a sheet of 40 stamped cards will increase from 
$0.40 to $0.80. These fees are in addition to the postage that is 
preprinted on the cards and covers the

[[Page 78554]]

cost of printing and manufacturing stamped cards. See DMM R000.3.0.
b. Stamped Envelopes
    The fees for all categories of stamped envelopes will increase. 
This fee is paid in addition to the postage preprinted on the 
envelopes. The following classification changes will apply to 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.

C. Summary of Comments From the August 29, 2000, Proposed Rule (65 
FR 52479)

    The Postal Service received nine pieces of correspondence offering 
comments on the August 29, 2000, proposed rule. Commenters included two 
major mailer associations, six publishers, printers and/or mailers, and 
one individual.
    The specific points raised in the comments are presented below, 
organized by general comments and then by class of mail and special 
service.

1. General Comments

    One commenter commended the Postal Service on publishing a clear, 
concise, and orderly proposed rule.
    One commenter supported the change of the minimum dimensions for a 
machinable parcel.
    One commenter indicated they are pleased with the name change from 
Standard Mail (B) to Package Services.
    One commenter indicated that their association had previously 
warned the Postal Service that eliminating the advertising requirement 
for Bound Printed matter would change the nature of that subclass and 
result in the entry of higher cost materials that would inevitably 
result in higher rates. This commenter further stated that although all 
mailers are concerned about rate increases the effect is much greater 
for catalog mailers than book mailers because books generally cost a 
substantial amount--$20.00 and more--and that book publishers can more 
easily absorb additional mailing costs. This commenter indicated it may 
be feasible to undo the damage by restoring Bound Printed Matter to its 
previous status by requiring it to contain advertising. This comment is 
outside the scope of this rulemaking and will not be addressed.
    One commenter indicated that their association recommends that the 
Postal Service give Standard and Package Services mailers a grace 
period to implement the new tray, sack, and pallet labels for those 
classes. The Postal Service will work with individual mailers 
concerning any exceptions needed concerning the requirements of this 
final rule.
    Two commenters indicated that the rate incentive for drop shipping 
Bound Printed Matter to a destination delivery unit to claim the DDU 
rates was not sufficient to compensate mailers for the additional costs 
of preparing and transporting the mail. These comments are outside the 
scope of this rulemaking process. The rates, rate structure, and basic 
standards for rates in Docket No. R2000-1 were subject to litigation 
before the Postal Rate Commission and cannot be revised unilaterally by 
the Postal Service in a rulemaking process.

2. Express Mail

    No comments were received regarding Express Mail.

3. Priority Mail

    No comments were received regarding Priority Mail.

4. First-Class Mail

    No comments were received regarding First-Class Mail.

5. Periodicals

    No comments were received regarding Periodicals.

6. Standard Mail (Formerly Standard Mail (A))

    One commenter supported the change that they believed allowed 
Delivery Confirmation and ancillary service endorsements to be used 
with Standard Mail pieces subject to the residual shape surcharge that 
are mailed using Priority Mail Drop Shipment procedures. The Postal 
Service did not specifically propose use of electronic Delivery 
Confirmation with Standard Mail parcels entered under Priority Mail 
Drop Shipment procedures, but has added clarifying language to the 
final rule DMM language to provide for such use where appropriate.

7. Package Services--Combined Mailings

    One commenter supported the change that allows the combining of any 
subclass into common containers to qualify for applicable DBMC, DSCF, 
and DDU rates. The Postal Service appreciates this comment but would 
like to point out that the provisions for Combined Package Services 
mailings in DMM E753 apply only to matter sorted to 5-digit containers 
for the purposes of meeting eligibility requirements for DSCF and DDU 
rates. There are no provisions for Combined Package Services mailings 
for DBMC rates.
    One commenter requested that overflow sacks be permitted in the 
preparation standards for combined package services mailings in DMM 
E753 that allows parcels from all Package Services subclasses to be 
combined in 5-digit sacks to qualify for Parcel Post and Bound Printed 
Matter DSCF and DDU rates. The proposed rule indicated that each 5-
digit sack must contain at least 10 pieces of any combination of 
Package Services mail. This commenter indicated that, if an overflow 
sack is not permitted, the number of pieces qualifying for this 
preparation option would always need to be perfectly divisible by 10 
and that this is not a practical scenario for mailers. The Postal 
Service agrees that the standards for combined package services 
mailings should include the preparation of overflow sacks and have 
incorporated the preparation of overflow sacks into the standards in 
E753. Preparation of overflow sacks will be available both for sacked 
mailings and for mailings prepared on pallets.
    This commenter also believed that irregular parcels were required 
to be prepared in packages under the Combined Package Services option 
in DMM E753. This commenter also questioned why irregular parcels were 
required to be packaged in 5-digit sacks as he believes there appears 
to be no operational reason for preparing irregular parcel in packages 
when they are in 5-digit containers. The Postal Service has clarified 
that packaging is not required for preparation of Combined Package 
Services mailings under DMM M753. In addition, the Postal Service has 
added an option to DMM M722 that will allow Presorted Bound Printed 
Matter irregular parcels prepared in 5-digit sacks to be prepared loose 
in sacks without packaging if the minimum package size requirement is 
met and the pieces are individually wrapped or enveloped.
    This commenter also pointed out an omission in the wording of 
proposed DMM E753.2.1a(3). This section of the DMM has been revised in 
the final rule.

8. Parcel Post (Including Parcel Select)

    Two commenters expressed concern that there would be 
inconsistencies in acceptance practices from location to location 
because of the proposed new nonmachinable surcharges for intra-

[[Page 78555]]

BMC rate and DBMC rate parcels. These commenters stated that the 
inconsistencies could be caused by differences in how parcels will be 
measured at different acceptance points around the country. The 
commenters suggested training for acceptance personnel and a transition 
period for application and compliance with new standards. Postal 
Service acceptance personnel will receive training on the new 
provisions in this final rule including the new nonmachinable 
surcharges for intra-BMC rate and DBMC rate nonmachinable parcels. 
Postal employees will use the procedures currently in effect for 
determining if an inter-BMC parcel is nonmachinable when determining 
whether the nonmachinable surcharges apply to intra-BMC rate and DBMC 
rate parcels. The Postal Service will make every effort to ensure a 
smooth transition into new procedures. However, no transition or grace 
period for application of the nonmachinable surcharges can be granted.
    One commenter indicated that use of the term ``Parcel Post'' in 
proposed DMM E711.2.2g pertaining to the barcoded discount was 
incorrect and that this term should be changed to ``Parcel Select.'' 
The term Parcel Post used in the DMM encompasses all rate categories of 
Parcel Post including the destination entry rates, which have been 
named Parcel Select. DMM E E711.2.2f in this final rule now contains 
the provisions for the barcoded rate. This section has been amended to 
show that the barcoded discount and its applicable 50-piece minimum 
mailing requirement applies to all Parcel Post rate categories, 
including Parcel Select.
    One commenter pointed out that Exhibit E711.2.2, BMC/ASF Service 
Areas, that is used to determine eligibility for intra-BMC rates had 
not been updated to move ZIP Code 893 from the Salt Lake City ASF to 
the Los Angeles BMC. This change was published in Postal Bulletin 
22038, November 30, 2000.

9. Bound Printed Matter

    One commenter expressed support for the change to ancillary service 
marking requirements for Bound Printed Matter.
    Two commenters stated they were opposed to the proposed requirement 
to restrict DDU rates to carrier route mail. One of these commenters, a 
mailer association, indicated that the proposed rule requirement that 
Bound Printed Matter pieces would be eligible for destination delivery 
unit (DDU) rates only if prepared as part of a Carrier Route Bound 
Printed Matter mailing appears to be a ``classification'' rather than a 
regulatory change. This commenter indicated there was nothing in the 
Postal Service's proposal to the PRC that indicated the DDU discount 
would be limited to carrier route mail. The commenter indicated its 
belief that the Postal Service overstepped its regulatory authority by 
adding such a limit to the DDU rate. Another commenter indicated that 
this requirement does not make sense and would add to costs for both 
the mailer and the Postal Service.
    The Postal Service submits that the proposed rule did not prohibit 
all Presorted Bound Printed Matter from obtaining DDU rates. The 
proposed restriction applied only to flat-size pieces at Presorted 
rates. This restriction contained in the proposed rule is consistent 
with the Postal Service's treatment of flat-size mail of other classes 
for eligibility for DDU rates. Currently, Standard Mail and Periodicals 
must be sorted to carrier route to obtain DDU rates. Furthermore, the 
Drop Shipment file also directs mailers to the delivery unit where the 
carrier is located that will deliver the flats. This assumes that the 
mailer must know the carrier route for flat-size mailpieces. This 
restriction was proposed in order to give the USPS the ability to 
process Presorted rate flat-size mail to carrier routes on Flat Sorting 
Machines at the plant, rather than manually sorting it to carrier 
routes at the delivery unit.
    However, the Postal Service has reconsidered this requirement. The 
final rule will provide that flat-size pieces of Presorted Bound 
Printed Matter may qualify for the DDU rates provided each piece weighs 
over one pound, the pieces are sorted in 5-digit sacks, or on optional 
5-digit scheme or required 5-digit pallets, or prepared as bedloaded 5-
digit packages. 5-digit containers or in bedloaded 5-digit packages, 
and are entered at the appropriate destination delivery unit. The Drop 
Shipment Product must be used to determine the correct destination 
entry facility for the 5-digit sorted flat-size Presorted Bound Printed 
Matter. If the Drop Shipment Product lists multiple facilities for a 
single 5-digit ZIP Code, the mailer must inquire about the correct drop 
site when contacting the DDU to schedule an appointment. Mail weighing 
over one pound is less likely to be worked on AFSM 100s and is not 
processed on FSM 881s. Heavier mail that is directed to an FSM 1000 is 
less likely to be processed to carrier routes on the FSM at the current 
time, although that may change after full deployment of AFSM 100s. 
Therefore, allowing DDU rates currently makes sense for these heavier 
flats. However, the Postal Service will reassess this decision when it 
receives the results of the AFSM 100 machinability tests.
    One commenter opposed the elimination of the marking ``Presorted 
Standard'' on Presorted Bound Printed Matter. This mailer has a 
customer that currently uses the ``Presorted Standard'' marking in the 
permit imprint indicia of pieces mailed at both Standard Mail (A) and 
Standard Mail (B) rates. For the portion of the mailing that is split 
off into a Standard Mail (B) mailing, the mailer ink-jets the ``Bound 
Printed Matter'' marking on the mailpieces directly to the left or 
below the permit imprint indicia. The Postal Service understands the 
concerns of the customer in question. However, the Postal Service In-
Office Costing System relies heavily on such markings to appropriately 
attribute costs to classes and subclasses of mail. Having markings 
indicating two different classes of mail on the same mailpiece is 
potentially confusing to data collectors and could result in 
inaccuracies in data collection. Instructions as to which marking 
overrides the other would be possible but adds a level of complexity to 
an already complex system. Furthermore, such dual markings are also 
confusing to delivery unit employees and Computerized Forwarding System 
(CFS) employees who rely on such markings to correctly handle and 
process undeliverable-as-addressed mail. Accordingly, the Postal 
Service is retaining the prohibition against using the ``Presorted 
Standard'' marking on Presorted Bound Printed Matter. Mailers are 
reminded that they will have until January 1, 2002, to discontinue use 
of the ``Presorted Standard'' (or ``PRSRT STD'') marking.
    One commenter disagreed that Bound Printed Matter weighing less 
than 1.5 pounds should be charged the rate equal to a piece weighing 
1.5 pounds. This commenter recommended a piece-pound calculation be 
used so that a 1-pound item would be the minimum. The Postal Service 
will not adopt this suggestion. The instructions in the proposed rule 
for calculating rates do not differ from the current requirements for 
calculating Bound Printed Matter rates in DMM P013.5.0. It should be 
noted that the 1.5-pound weight category is contained in the single-
piece rate Bound Printed Matter rate chart. The PRC recommended adding 
rate cells for pieces weighing not more than one pound to this rate 
schedule. The 1-pound rates that the PRC recommended are the same as 
the rates for the 1.5-pound weight cells. Furthermore, the column 
heading for the weights in rate

[[Page 78556]]

schedule 522A, Domestic Mail Classification Schedule and in DMM R700 is 
``Weight not Exceeding (pounds).'' This means that all mail that does 
not exceed the first weight category on the schedule pays rates shown 
for the first weight category. A piece and pound calculation is not 
performed for single-piece Bound Printed Matter.
    One commenter supported the change to the handling of 
undeliverable-as-addressed Bound Printed Matter pieces that are not 
mailed with a special service or an ancillary service endorsement that 
will make it the same as for Standard Mail. This change provides 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, will be disposed of by the USPS 
as waste at the delivery unit. Mailers of Bound Printed Matter who want 
to have their UAA pieces forwarded and returned must choose the 
appropriate ancillary service endorsement for the service they desire. 
Handling of mail for each ancillary service endorsement is in DMM F010. 
The commenter indicated that this change will allow catalog mailers 
that generally mail as Standard Mail to mail heavier catalogs, over one 
pound, without applying the ancillary service endorsement. This 
commenter indicated the previous requirement was confusing and 
sometimes costly for such mailers, who had no option for disposing of 
pieces.
    One commenter suggested that packaging should not be required for 
Presorted Bound Printed Matter irregular parcels prepared in 5-digit 
sacks. The Postal Service has added to the final mail preparation 
standard the option of forgoing packaging provided the pieces in the 
sack meet the minimum packaging volume and the pieces are individually 
wrapped or enveloped.
    Three commenters expressed concern regarding the proposed 
elimination of the bedloaded bundle preparation option for Bound 
Printed Matter. One of these commenters suggested that the Postal 
Service allow customers to continue bedloading on an exception basis or 
``grandfathering'' of existing products because a transition to product 
palletization will require major changes in some mailer facilities. 
Another commenter also indicated they had a client that currently 
bedloads bundles for which the required pallet preparation would be 
costly, slow down their production process, and require at least until 
March or April, 2002 to install. That commenter requested that the 
Postal Service waive the requirements for this customer. The third 
commenter also indicated that requiring palletization for DSCF or DBMC 
rates would incur large costs to mailers and that they were not 
convinced the benefits to the Postal Service would be commensurate. 
This commenter requested that the Postal Service design a bedloaded 
entry option for DSCF or DBMC entry that would be subject to strict 
scheduling, advance notice and other requirements that would permit 
maximum Postal Service efficiency.
    The mail preparation standards that were set forth in the proposed 
rule are designed to lower the Postal Service costs of handling Bound 
Printed Matter. Generally, bedloaded packages or bundles of Bound 
Printed matter are not machinable on BMC parcel sorters and are not 
cost-efficient for the Postal Service to handle and process. The 
requirement to sack or palletize mail is designed to enable more mail 
to be processed on sack sorters and to enable pallets of mail to be 
cross-docked at BMCs and processing plants, thereby reducing the number 
of individual piece handlings of Bound Printed Matter. The Postal 
Service believes that permitting bedloaded packages only when the mail 
is entered by the mailer at the destination delivery unit for the DDU 
rates is critical to lowering the overall costs of processing Bound 
Printed Matter. Accordingly, the sortation requirements in the final 
rule retain the restriction on bedloaded packages to mail prepared for 
the DDU rates. The Postal Service will work with mailers on a case-by-
case basis to develop interim solutions for those who need time to 
convert their operations to pallet preparation.
    One commenter indicated that lowering the maximum package weight 
for Bound Printed Matter on pallets from 40 pounds to 20 pounds will 
create production throughput problems because they will now be able to 
place only four catalogs in each package. This commenter indicated that 
this will require slowing their production lines to allow the 
production of the additional packages.
    The Postal Service proposed the 20-pound maximum package size to 
allow packages to be handled on Small Parcel and Bundle Sorters 
(SPBSs). As indicated above, most packages of Bound Printed Matter are 
not prepared to withstand handling on BMC parcel sorting equipment. If 
packages exceed 20 pounds they cannot be processed on SPBSs. Allowing 
heavier packages would result in the Postal Service having to process 
such packages manually at a greater cost than mechanized processing. 
These costs are eventually reflected in the rates. Accordingly, the 
Postal Service is retaining the 20-pound package limit in the final 
rule, except that the following packages have a maximum weight limit of 
40 pounds: (1) Carrier route packages in sacked mailings, (2) 5-digit 
packages in 5-digit sacks, (3) carrier route packages of flats on 5-
digit scheme carrier routes or 5-digit carrier routes pallets, (4) 
carrier route packages of irregular parcels on 5-digit pallets, (5) 5-
digit packages of flats on 5-digit scheme pallets, (6) 5-digit packages 
of flats or irregular parcels on 5-digit pallets, and (7) carrier route 
bedloaded packages or 5-digit bedloaded packages prepared for the DDU 
rate.

10. Special Services

    The Postal Service received two comments related to special 
services. One commenter supported the proposal to allow mailers to add 
special services to Standard Mail (formerly Standard Mail (A)) pieces. 
Another commenter supported the proposal to add a new ``high-volume'' 
category for Qualified Business Reply Mail.

D. Summary by DMM Module of All R2000-1 Revisions

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

[[Page 78557]]

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. A910.2.2 is amended to show that the minimum fee ($7.50) 
for correcting a mailing list applies to lists with fewer than 30 names 
or addresses.

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 each 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. Those 
sections 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, and to include the criteria for 
nonmachinability from E630.1.4. 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 
revised maximum weight of 3.3 ounces for heavy letters. C840.3.0 is 
revised to include new requirements under which mailers may submit 
flat-size automation rate mailings in which pieces contain two POSTNET 
barcodes.
    C850 is amended to add Standard Mail machinable parcels as items 
eligible for barcoded discounts. C850.1.4 is amended to include 
information about barcodes for Signature Confirmation service.

D  Deposit, Collection, and Delivery

    D210 is revised to provide for DDU rate eligibility for Periodicals 
mail entered under exceptional dispatch authorizations. The change will 
limit DDU rates under exceptional dispatch to mail destined to zones 1 
and 2 and will provide a restriction on eligibility to publications 
with circulation of 25,000 and under.
    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 free (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 is 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 that if 
Presorted rates are claimed for both Media Mail and Bound Printed 
Matter, the mail must be prepared under the standards for Bound Printed 
Matter in M722.
    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.

[[Page 78558]]

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. E150.3.3 is amended by adding a quarterly 
QBRM fee under E150.3.2c.
    E211.13.1 is amended by revising 13.1d(3) to reference the 
preferred rate discount. E211.13.2 is amended to clarify that 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 E217.1.0. E212.2.4 has been revised and renumbered as E217.4.0. 
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 
E217 is created that describes and clarifies basic rate eligibility 
standards for Periodicals including the new preferred rate discount for 
Nonprofit and Classroom publications that provides a 5% discount on 
total Outside-County postage, excluding the postage for advertising 
pounds. E250 is revised to incorporate changes that provide for DDU 
rates for Periodicals mail entered under exceptional dispatch 
authorizations. 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 in 1.0 the word 
``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. Replacing the word ``RATES'' with the 
word ``ELIGIBILITY'' amends renumbered E270.2.0 and 3.0. Sections 
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 ``regular'' 
in the last sentence amends renumbered E270.4.0. E270.5.1 is amended by 
adding a new first sentence clarifying that 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 adds 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 (formerly E612.4.0) is amended for clarity and 
incorporates a revised maximum limit for minimum per piece rates. 
E610.5.4 is added to provide for the barcoded rate for machinable 
parcels. E610.5.5 is revised to provide for separate residual shape 
surcharges for Presorted rates and for Enhanced Carrier Route rates. 
E612.4.9 is renumbered as E610.8.0, is amended for clarity to provide 
for use of detached address labels. E610.5.6 (previously E612.4.4) is 
amended to provide for the residual shape surcharge and to include the 
first sentence of previously numbered E612.4.5. Former E612.4.5 is 
deleted. Renumbered E610.5.6 (previously E612.4.4) is amended to remove 
the reference to 4.6, to delete ``bulk'' and to change ``pound rates'' 
to ``piece/pound rate.'' E612 is removed and, except as noted above, 
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 machinable parcel barcoded 
discount. E630 is revised to contain the eligibility criteria for 
Enhanced Carrier Route Standard Mail. (Information in former E630 has 
been moved to new E700.) E640 is amended to replace ``Standard Mail 
(A)'' with ``Standard Mail'' and to replace ``E611 and E612'' with 
``E610.'' E650 contains the contents of previously numbered E651 and 
has been amended to change references from ``E611 and E612'' to 
``E610.'' E670 is amended to change ``P750'' 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. The appropriate 
provisions of former E611 and E613 are renumbered as the basic 
standards in E710. Former 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. Provisions in former E630.1.0 are 
renumbered as E711 (Parcel Post). E711.2.3 is revised to clarify that 
certain parcels mailed at a balloon rate may be subject to a 
nonmachinable surcharge. Provisions in former E630.2.0 are renumbered 
as E712 (Bound Printed Matter). Provisions in former E630.3.0 and 
E630.4.0 (Special Standard Mail) are renumbered as E713 (Media Mail). 
The definition of a full sack is revised in E713 to eliminate the 1,000 
cubic inch volume sacking criteria. Provisions in former E630.5.0 and 
E630.6.0 are renumbered as E714 (Library Mail). The definition of a 
full sack is revised in E714 to eliminate the 1,000 cubic inch volume 
sacking criteria. Provisions in former E630.7.0 are renumbered as E715. 
Former E630.1.4, that contains the description of items subject to 
Parcel Post nonmachinable surcharges, is renumbered and moved to 
C700.2.0. 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 that contains the eligibility requirements 
for Bound Printed Matter destination entry discounts. An annual 
destination entry fee for mail entered at destination entry rates is 
added. E752 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 under E753.

F  Forwarding and Related Services

    F010.4.5 is amended to add that Standard Mail with insurance is 
forwarded and returned and to show that registered items are given 
registered service while they are being forwarded or returned. F010.4.6 
is added to make the standards for undeliverable metered mail in this 
module consistent with standards elsewhere in the DMM.

[[Page 78559]]

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.
    F020.3.7 is amended to show that pieces with Delivery Confirmation 
and Signature Confirmation are forwarded without payment of additional 
special service fees. 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 accounting fee. F030.4.2 is amended to include 
information about forwarding and return of Standard Mail.

G  General Information

    G091.3.0 is amended to reflect the increase in the fee for 
certification of a system as functionally equivalent to Mailing Online 
from $100 to $125.

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 only ``Library Mail'' may be used as the 
marking), and 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 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, to 
change the labeling list used for ADC sortation of BPM irregular 
parcels from L603 to L004, and 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 Mail flats in trays. 
M020.3.0 is amended to show that the requirement 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 must be placed on separate 5-digit pallets (5-digit scheme 
and 5-digit pallets) from 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 to revise the package minimums, maximums, and physical 
packaging requirements for BPM. Current M045.3.0, which provides for 
optional preparation of bundles on pallets for Periodicals and Standard 
Mail, is deleted. M045.4.0 (as set forth in the final rules published 
in 65 FR 50054 (August 16, 2000)) is renumbered as M045.3.0. M045.3.0 
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.'' M045.3.5 (M045.4.4 as set forth in 
the final rule published in 65 FR 50054 (August 16, 2000)) is revised 
to provide for DBMC rates for Bound Printed Matter and to revise line 2 
pallet labels to show ``STD'' instead of ``STD A'' and to show ``PSVC'' 
instead of ``STD B.'' M045.3.6 (M045.4.5 as set forth in the final rule 
published in 65 FR 50054 (August 16, 2000)) is revised to change the 
line 2 pallet labels from ``STD'' or ``STD B'' to ``PSVC.'' M045.5.0 
through M045.15.0 (as set forth in the final rule published in 65 FR 
50054 (August 16, 2000)) is renumbered as M045.4.0 through M045.14.0. 
Renumbered M045.6.4 and M045.9.2 are amended by changing the reference 
``M630'' to ``M710 or M720.'' Renumbered M045.10.0 and 11.0 are amended 
by changing ``STD'' or ``STD B'' to ``PSVC.'' Renumbered M045.12.1 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 M045.12.2 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.

[[Page 78560]]

    M610.6.0, which provided for preparation of Standard Mail bedloaded 
bundles, is deleted. M620.1.1a is amended by changing ``E620'' to 
``E630.'' M630.1.0, pertaining to Parcel Post, is renumbered in new 
M710.
    M710.1.1 is added to describe general requirements for Parcel Post. 
M710.1.3 (formerly M630.1.2) is revised to show that DSCF and DDU rate 
mail need not be separated by zone at the time of acceptance and to 
change ``P710, P720, or P730'' to ``P910, P920, or P930.'' M710.1.4 
(formerly M630.8.0) is added to contain standard for commingled zones. 
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 E652.7.0 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 BPM. M722.2.0 contains new 
packaging and sacking requirements for Presorted BPM flats, including 
new line 2 sack labeling requirements that change the abbreviation 
``STD B'' to ``PSVC.'' M722.3.0 contains new packaging and sacking 
requirements for Presorted BPM irregular parcels weighing less than 10 
pounds, including a requirement to use L004 instead of L603 for 
preparation of ADC sacks, to use L004 instead of L604 for mixed ADC 
sacks, and new line 2 sack labeling requirements that change the 
abbreviation ``STD B'' to ``PSVC.'' M722.3.6 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 10 or more 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 through 
M722.4.4 contains sacking requirements for Presorted BPM irregular 
parcels weighing 10 or more pounds including a requirement to use L004 
instead of L603 for preparation of ADC sacks, to use L004 instead of 
L604 for mixed ADC sacks, and new sack labeling requirements that 
change the abbreviation ``STD B'' to ``PSVC.'' M722.4.5 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 BPM machinable parcels. These provisions eliminate 
the 1,000 cubic inch sacking minimum option, provide for preparation of 
an ASF sack when DBMC rates are claimed, and 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 through M723.2.4 
contains new sacking minimums, requires preparation of carrier route 
sacks, provides for optional preparation of 5-digit scheme carrier 
routes sacks for Carrier Route BPM flats and amends the Line 2 sack 
labels to change the class abbreviation from ``STD B'' to ``PSVC.'' 
M723.2.5 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 requirements 
for Carrier Route BPM weighing less than 10 pounds. M723.3.1 sets forth 
new packaging requirements for Carrier Route BPM irregular parcels 
weighing less than 10 pounds. M723.3.2 through M723.3.4 contain sack 
preparation requirements that change the carrier route sack minimum, 
make it a required level of sack, and amend line 2 sack labels to 
change the class abbreviation from ``STD B'' to ``PSVC.'' M723.3.5 
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. M723.4.0 contains requirements 
for Carrier Route BPM irregular parcels weighing 10 or more pounds. 
M723.4.1 requires Carrier Route BPM irregular parcels weighing 10 or 
more pounds to be prepared only in direct carrier route sacks 
containing a minimum of 20 pounds of mail. M723.5.0 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 
(formerly M630.4.4) contains sack and package on pallet preparation for 
5-digit Media Mail rates. M730.2.1 is 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 (formerly 
M630.5.1 through 5.3) contains basic standards for Library Mail and is 
amended to discontinue use of the ``Library Rate'' marking beginning 
January 1, 2002. M740.2.1 (former M630.5.4) contains sack preparation 
requirements for the 5-digit Library Mail rates and is amended to 
remove ``/1,000 cubic inches'' and to change line 2 labels from ``STD'' 
and ``STD B'' to ``PSVC.''
    M740.2.2 (formerly M630.5.5) contains sack preparation requirements 
for the BMC Library Mail rates and is amended to remove ``/1,000 cubic 
inches.'' M740.2.3 (formerly M630.5.6) contains line 2 sack label 
information for Library Mail and is amended to change ``STD'' and ``STD 
B'' to ``PSVC.''
    M820.1.2 is amended to incorporate the separate rates for 5-digit 
and 3-digit First-Class Mail automation flats. M820.1.5 is amended to 
exclude First-Class Mail 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 1000 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.

[[Page 78561]]

P  Postage and Payment Methods

    P011.1.1 is amended by renumbering 1.1b through 1.1e as 1.1c 
through 1.1f and by adding 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 require tray 
levels and tray destinations in the body elements of the standardized 
documentation for the new tray-based preparation option for First-Class 
Mail automation flats. P012.2.3 is amended to add the rate levels and 
abbreviations for the new tray-based option for First-Class Mail 
automation flats. P013.1.4 and 1.5 are amended to show how to properly 
affix postage to single-piece rate mailings and other-than-single-piece 
rate mailings. P013.2.4 is revised to reflect the new one-pound minimum 
Priority Mail rate. P013.2.6 is amended to reflect that keys and 
identification devices weighing more than 13 ounces but not more than 
one pound would be charged the new one-pound rate. P013.9.0 is amended 
to clarify how to calculate Package Services postage for pieces with 
postage affixed and for pieces paid with permit imprint. P014.2.4f is 
amended to show that customers may receive a refund for Signature 
Confirmation service. P014.2.4i is amended to include standards for 
when the destination entry mailing fee for Package Services and Bound 
Printed Matter is eligible for a full (100%) refund. P014.2.11 is 
amended to show that the QBRM quarterly fee is not refundable. P022.1.2 
is amended to show that postage due stamps cannot be used to pay 
postage due. P030.3.5 is amended to reflect the new categories for on-
site meter service and to exclude secured postage devices from the 
meter service fees. P070.5.4 is amended to specify that unmarked 
parcels are rated at the inter-BMC/ASF postage rates. P600.4.0 and 5.0 
are added to clarify payment standards for Standard Mail pieces that 
claim the barcoded discount or are mailed 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 to 
contain payment standards for 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 clarify the additional services that can be 
added to registered mail and to add Signature Confirmation as an 
additional service. 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 
clarify the additional services that can be added to insurance and to 
add Signature Confirmation as an additional service. S913.1.6 is added 
to clarify that customers may request a delivery record after mailing. 
S913.2.5 is amended to include information about integrated barcodes 
with Signature Confirmation and insurance. 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. S915.4.2 
is amended to clarify how to request delivery information. 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.
    Effective November 5, 2000, the Postal Service completely rewrote 
DMM standards for business reply mail (see Postal Bulletin 22035 (10-
19-00), available via www.usps.com). This rewrite was done for clarity 
and consistency. Therefore, standards for business reply mail in this 
final rule have been reorganized to reflect the new structure of DMM 
units E150, P014, R900, and S922. There have been no substantive 
changes to these standards since publication in the proposed rule.
    S922.3.3 is amended to delete the requirement that BRM permit 
holders maintain a unique advance deposit account just for BRM. 
S922.7.7 and 7.8 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.
    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. S923.2.7 is amended to remove 
references to the per piece fee for items returned via merchandise 
return service. 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

[[Page 78562]]

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 labels. 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 rulemaking 
by 39 U.S.C. 410(a), the Postal Service hereby adopts the following 
amendments to the Domestic Mail Manual (DMM), which is incorporated by 
reference in the Code of Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

PART 111--[AMENDED]

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

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

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

A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *
    [Amend 1.2 by replacing ``and 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

    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 Shipment 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 Shipment 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 entry unit is determined by 
using the Drop Shipment 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. A 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''; no other changes to text.]
* * * * *

A900  Customer Support

A910  Mailing List Services

* * * * *
2.0  FEE ASSESSMENT

2.1  Corrections

    [Amend 2.1 to show that the minimum fee applies to lists with fewer 
than 30 corrections:]
    The fee for correcting name and address lists or occupant lists is 
assessed for each name or street address on the list. Individual 
apartments are considered separate addresses. The minimum fee in R900 
applies to lists with fewer than 30 names or addresses. (For assessing 
the fee, the USPS considers a list to be all the addresses sent at one 
time to the appropriate postal facility.)
* * * * *

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

* * * * *

[[Page 78563]]

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 
even though 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 properly labeled, entered at a post office within 
the service area of the authorizing BMC, and bear delivery addresses 
located within the service area of the authorizing BMC.
* * * * *

C200  Periodicals

1.0  PERMISSIBLE MAILPIECE COMPONENTS
    [Amend 1.3, 1.8, and 1.10 to replace ``Standard Mail (A)'' with 
``Standard Mail.'']
* * * * *
2.0  IMPERMISSIBLE MAILPIECE COMPONENTS
* * * * *

2.2  Prohibited Matter

    [Amend 2.2c to replace ``or 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:]
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.
* * * * *
    [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. Insert the criteria for 
nonmachinability from E630.1.4 and amend to extend the nonmachinable 
surcharge to intra-BMC and Parcel Select-DBMC pieces to read as 
follows:]
2.0  NONMACHINABLE PARCEL POST PIECES
    [Effective December 12, 2000, the Postal Service amended the 
criteria for nonmachinability (see Postal Bulletin 22038 (11-30-00), 
available via www.usps.com)). Those changes are reflected in the 
following paragraphs.]
    Mailpieces described in this section and mailed at the inter-BMC/
ASF Parcel Post, intra-BMC/ASF Parcel Post, and DBMC Parcel Select 
rates are subject to the applicable nonmachinable surcharge in R700 
unless the applicable special handling fee is paid. An oversized parcel 
as described in 1.0c is not subject to the nonmachinable surcharge. 
Mailpieces are nonmachinable if they meet any of the following 
criteria:
    a. A parcel more than 34 inches long, 17 inches wide, or 17 inches 
high, or weighing more than 35 pounds.
    b. A parcel containing more than 24 ounces of liquid in glass 
containers, or 1 gallon or more of liquid in metal or plastic 
containers.
    c. An insecurely wrapped or metal-banded parcel.
    e. A can, roll, or tube, or wooden or metal box.
    f. A shrub or tree.
    g. A perishable such as eggs.
    h. Books, printed matter, or business forms weighing more than 25 
pounds.
    i. A high-density parcel weighing more than 15 pounds and exerting 
more than 60 pounds per-square-foot pressure on its smallest side.
    j. A film case 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 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.
    k. Parcels with characteristics (such as inadequate packaging) that 
could result in damage to the contents or postal machinery if 
mechanical sortation is used.
    [Add new 3.0 to read as follows:]

[[Page 78564]]

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 by revising the 
maximum weight limit for heavy letters 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, subject to 7.5: 3.3 ounces 
(0.2063 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.]
* * * * *
    [Revise 3.0 to read as follows:]
3.0  BARCODE APPLICATION--FLAT-SIZE PIECE

3.1  General Requirements

    On any flat-size piece claimed at automation rates, the piece may 
bear one POSTNET barcode under 3.2, or may bear two POSTNET barcodes 
under 3.3. Other mailer-applied non-POSTNET barcodes may appear on the 
address side of the piece if the barcode format is not detectable or 
confusing to automated postal equipment.

3.2  Applying One POSTNET Barcode

    On any flat-size mailpiece claimed at an automation rate, the 
barcode may be anywhere on the address side as long as it is at least 
\1/8\ inch from any edge of the piece. For FSM 1000 mailpieces, the 
preferred location of the barcode is at least 2 inches from the edge of 
the dimension that is the length for that type of automation piece (the 
longest edge or, for pieces with a folded or bound edge, the folded or 
bound edge). The portion of the surface of the piece on which the 
barcode is printed must meet the barcode dimensions and spacing 
requirements in 4.0 and the reflectance standards in 5.0. Address block 
barcodes are subject to the standards in 2.5a through 2.5e.

3.3  Applying a Second POSTNET Barcode

    A second POSTNET barcode may be applied to the piece at the 
mailer's option only if the first POSTNET barcode on the piece is an 
address block barcode prepared under 3.2 that is not CASS-certified. In 
addition, the second barcode must meet the following requirements:
    a. It must be a delivery point barcode (DPBC).
    b. The preferred placement is the lower right corner of the 
mailpiece parallel to and in the same direction as the delivery 
address.
    c. It must be placed at least 1 inch below the return address.
    d. The space between the two POSTNET barcodes must be greater than 
1 inch.
* * * * *
    [Amend title of C850 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,'' and replace ``E630'' with ``E620, E720, E730, 
or E740''; no other changes to text.]
* * * * *
    [Effective November 30, 2000, the Postal Service revised DMM 
C850.1.4 to include new information about integrated barcodes. See 
Postal Bulletin 22038 (11-30-00).]
    [Amend 1.4 by replacing ``Standard Mail (B)'' with ``Standard Mail 
and Package Services mail'' and ``E630'' with ``E620, E720, E730, or 
E740.'' Amend 1.4c to add information about Signature Confirmation to 
read as follows:]

1.4  Use with Delivery Confirmation and Signature Confirmation 
Services

    A mailer may qualify for the machinable parcel barcode discount and 
may apply Delivery Confirmation and Signature Confirmation barcodes 
provided that the requirements in E600, E700, and S900 are met and the 
barcode(s) is prepared in one of the following ways:
    a. Separate Barcodes. Mailers may place both a postal routing code 
prepared under 1.0 through 4.0 and separate Delivery Confirmation and 
Signature Confirmation barcodes on the same mailpiece.
    b. Single Concatenated Barcode. Mailers may print on the same 
mailpiece a single concatenated barcode that combines the postal 
routing code and Delivery Confirmation and/or Signature Confirmation 
information as follows:
    (1) Only the UCC/EAN Code 128 barcode symbology may be used.
    (2) The barcode must be prepared according to the barcode 
specifications for the UCC/EAN Code 128 in S918, S919, and Publication 
91.
    (3) The barcode must be prepared according to the data format 
requirements for concatenated barcodes in Publication 91, Appendix G, 
Table 25. This format contains the start code, function one code, the 
``420'' application identifier, the 5-digit code of the delivery 
address on the mailpiece, the function one code, the ``91'' application 
identifier, the service type code, the customer ID, the sequential 
package ID, the MOD 10 check digit, the MOD 103 check digit, and the 
stop code. The MOD 10 check digit must be calculated using only the 
Delivery Confirmation barcode or Signature

[[Page 78565]]

Confirmation barcode elements. The function one codes, the ``420'' 
application identifier, and the 5-digit code of the delivery address 
are not included in the MOD 10 check digit calculation.
    (4) Instead of the requirements in 3.0 and 4.0, mailers must use 
the format, placement, and human-readable information requirements 
found in S918, S919, and Publication 91. The human-readable numeric 
representation of the concatenated barcode must show the ``420'' 
application identifier, the 5-digit code of the delivery address, the 
``91'' application identifier, the service type code, customer ID, 
sequential package ID, and MOD 10 check digit. The human-readable 
information also must include the ``USPS Delivery Confirmation'' or 
``USPS Signature Confirmation'' text and identification bars.
    (5) In addition to the human readable requirements in S918, S919, 
and Publication 91, the word ``ZIP'' must be printed to the left of the 
barcode in 12 point or larger sans serif type. A clear zone between the 
end of the word ``ZIP'' and the beginning of the barcode must be 
maintained. The clear zone must be no less than 10 times the average 
narrow bar or space element width and no more than \1/2\ inch to the 
left of the barcode. A clear zone of 0.25 inch is recommended.
    (6) If a mailpiece bears a concatenated barcode, then no other 
barcodes that appear on the mailpiece may contain the postal routing 
code structure (see 1.5).
    (7) All barcode symbols must be printed on substrate material that 
preserves the optical specification as described in the AIM-USA Uniform 
Symbology Specification documents. Typically, white label stock 
commonly used for barcode generation is suitable, providing it is not 
glossy (causing mirror-like (specular) reflection) nor prone to 
smearing or smudging.
    c. Integrated Barcode. An integrated barcode may be used by mailers 
who choose to combine Delivery Confirmation or Signature Confirmation 
with other special services on Priority Mail and Package Services. This 
option also is available for electronic option Delivery Confirmation 
with other special services on Standard Mail. Mailers may combine 
multiple services into a single barcode on the shipping label to 
eliminate multiple labels and barcodes on parcels. The only approved 
combinations are Delivery Confirmation combined with insurance and 
Signature Confirmation combined with insurance. Mailers printing their 
own barcodes and using the electronic option must meet existing 
specifications in S918 or S919. Two required changes are:
    1. Change the text above the barcode to identify the service 
requested. Exhibits are included in Publication 91, Delivery 
Confirmation Technical Guide, November 2000 edition (which includes the 
addendum on Signature Confirmation and integrated barcodes.)
    2. Change the service type code in the barcode to identify the 
class of mail and/or type of special service combined with Delivery 
Confirmation or Signature Confirmation. Additional information on the 
Service Type Code Matrix can be found in Publication 91, Delivery 
Confirmation Technical Guide, November 2000 edition.
* * * * *

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.]
3.0  EXCEPTIONAL DISPATCH
* * * * *

3.2  Intended Use

    [Revise 3.2 by amending the first sentence and adding a new second 
sentence to read as follows:]
    The provision for exceptional dispatch is intended for short-haul 
local distribution (zones 1 and 2) of publications with total 
circulation of no more than 25,000 and is not to be used to circumvent 
additional entry standards. Applications for exceptional dispatch for 
publications with over 25,000 total circulation may be considered on a 
case-by-case basis for possible waiver of the 25,000-circulation limit.
* * * * *

3.4  Destination Rates

    [Revise 3.4 by changing the second sentence to read as follows:]
    * * * Copies of Periodicals publications deposited under 
exceptional dispatch may be eligible for and claimed at the SCF rates 
if eligible for those rates at both the entry office from which the 
zone rate postage for those copies is computed and at the post office 
of deposit by exceptional dispatch. Copies of Periodicals publications 
deposited under exceptional dispatch may be eligible for and claimed at 
the destination delivery unit rates provided the applicable standards 
in E250 are met. * * *
* * * * *

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 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 (including Parcel Select), Bound Printed Matter, Media 
Mail, and

[[Page 78566]]

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, and barcoded 
discount mailings must be presented for verification and acceptance at 
the post office where the permit or license is held. 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 
Shipment Product maintained by the National Customer Support Center 
(NCSC) (see G043). There is a charge for the Drop Shipment 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 6-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 6-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 initiating lock changes 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, can assign a fee group to a new ZIP Code, 
and may authorize the reassignment of one or more 5-digit ZIP Codes to 
the next higher or lower fee group if the past fee group assignments 
were 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 a ZIP Code 
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. If post office box service fees are increased, no 
customer must pay the new rate until the end of the current service 
period, and no retroactive adjustment is to be made for a payment 
received before the date of the change. The 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 4.7 by removing reference to ``Group 
D'' 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 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 facility space for post office boxes in each 5-
digit ZIP Code. Local post offices can provide information about fees 
for a particular ZIP Code.

[[Page 78567]]

5.2  Free Box Service (Group E)

    Customers may qualify for free (Group E) post office box service 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) post office 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 next 
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 must be paid on each additional 
key requested under 7.2. When box service is terminated, the key 
deposit is refunded to the customer for each key (including additional 
or replacement keys in 7.2) that is returned to the post office where 
the box was issued.

7.2  Additional 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 (see 7.1) 
and the key fee in R900. The fee for additional or replacement keys is 
not refundable. Worn or broken keys are replaced without charge when 
returned to the post office where the box is located.
* * * * *
    [Add new 7.4 to explain the lock replacement fee to 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 box 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 reservation 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 caller number fee in R900 is charged per calendar year 
or any part of a calendar year for each number reserved by a customer. 
Reserved caller number fees are not prorated.

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 
current service period, and no retroactive adjustment is to be made for 
a payment received before the date of

[[Page 78568]]

the change. The fee charged is that in effect on the date of payment.
* * * * *

4.5  Payment

    [Amend 4.5 to clarify the payment periods for caller service to 
read as follows:]
    The basic caller service 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 next 
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
* * * * *
    [Amend 1.2 to change ``Standard Mail (B)'' to ``Package 
Services.'']
* * * * *

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 3.0 by changing ``Standard Mail'' to ``Standard Mail and 
Package Services.'' 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 to read as follows:]

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 to read as 
follows:]
    The following special services are not available for mail 
transmitted through the Department of State: certified, COD, Delivery 
Confirmation, insured, registered, restricted delivery, return receipt, 
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:]

10.1  Restriction to Approved Formats

    An agency may distribute penalty envelopes, cards, cartons, or 
labels to

[[Page 78569]]

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 
BRM with cash upon delivery or through an advance deposit account. If 
an agency chooses to pay through an advance deposit account, then it 
must pay an annual accounting fee, which is billed through an 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,'' 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, then 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) or 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, which is assessed automatically through OMAS.
* * * * *

12.7  Label Format

    [Amend redesignated 12.7 by changing ``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  Insurance 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 other special 
services as listed in S913. 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 the 
sender's own expense. 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, Parcels, and 12.13, Postage and Fees. 
Redesignate 12.14, Permit Cancellation, and 12.15, Later Receipt, 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 
the following:
    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 Package Services piece. Combination

[[Page 78570]]

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 PARCELS
    [Amend 4.1 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; no other changes to text.]
    [Amend 4.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; by replacing ``Standard Mail (B) with ``Package Services''; 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 that 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. If presort rates are claimed on both subclasses, 
the mail must be prepared under the standards for Bound Printed Matter 
(M722).
* * * * *

E100  First-Class Mail

E110  Basic Standards

1.0  CLASSIFICATION AND DESCRIPTION
* * * * *
    [Amend 1.2 by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services'' 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 to provide for separate 5-digit and 3-digit rates to 
read as follows:]
    First-Class Mail automation rates apply to each piece that is 
sorted under M820.2.0 or 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 and 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 (and all pieces in 
one less-than-full overflow tray) 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. Groups of 90 or more pieces in 3-digit trays (and all pieces in 
one less-than-full overflow tray) qualify for the 3-digit automation 
rate.
    c. Groups of fewer than 90 pieces in origin 3-digit trays and all 
pieces in ADC and mixed ADC trays qualify for the basic automation 
rate.

E150  Qualified Business Reply Mail

    [Effective November 5, 2000, the Postal Service rewrote and 
reorganized standards for business reply mail and qualified business 
reply mail (see Postal Bulletin 22035 (10-19-00), available via 
www.usps.com). The numbering in this final rule reflects those 
changes.]
* * * * *
2.0  AUTHORIZATION
    [Amend 2.0 by removing the last sentence.]
3.0  POSTAGE, PER PIECE CHARGES, AND FEES
* * * * *

3.3  Fees

    [Revise 3.3 to add new item c for the QBRM quarterly fee to read as 
follows:]

[[Page 78571]]

    The following fees apply to QBRM First-Class Mail:
* * * * *
    c. At the mailer's option, a quarterly fee.

E200  Periodicals

E210  Basic Standards

E211  All Periodicals

* * * * *
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

1.1  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 in 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, 3.9c, and 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 In-County rates, and Nonprofit, Classroom, 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 that 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% limit must be part of a presorted 
commingled mailing (one that includes subscriber copies). Subject to 
E217.4.0, 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 for 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 E217.4.0) 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 E217.0.]

E217  Basic Rate Eligibility

1.0  OUTSIDE-COUNTY RATES
    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

[[Page 78572]]

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 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 E217.
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 any of 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

2.1  Eligibility

    [Amend 2.1 by replacing sentence one and two with new sentences 
one, two and three to read as follows:]
    The destination delivery unit (DDU) rate applies to pieces, 
including exceptional dispatch pieces, entered at the facility where 
the carrier cases mail for the carrier route serving the delivery 
address on the mailpiece. Letter-size copies claimed at DDU rates must 
be part of a carrier route package placed in a carrier route tray or a 
5-digit carrier routes tray, prepared under M200, and otherwise 
eligible for and claimed at a

[[Page 78573]]

carrier route rate. Flat-size or irregular parcel-size copies claimed 
at DDU rates must be part of a carrier route package placed in a 
carrier route sack; a 5-digit carrier routes sack, a 5-digit scheme 
carrier routes sack, a merged 5-digit sack, or a merged 5-digit scheme 
sack prepared under M200 or M920, or palletized on a 5-digit carrier 
routes, 5-digit scheme carrier routes, merged 5-digit, or merged 5-
digit scheme pallet prepared under M045, M920, M930, or M940, and 
otherwise eligible for and claimed at a carrier route rate. Except for 
the standards for preparing basic carrier route or walk-sequence 
carrier route rate mail, there is no additional minimum volume required 
for a DDU rate mailing.
* * * * *

2.4  Deposit Schedule

    [Amend 2.4 by adding a new last sentence and by replacing 
``Standard Mail'' with ``Standard Mail or Package Services mail'' to 
read as follows:]
    The mailer may schedule deposit of DDU rate mailings at least 24 
hours in advance by contacting the district office in whose service 
area the destination facility is located. The mailer must follow the 
scheduled deposit time provided. The mailer may request standing 
appointments for renewable 6-month periods by written application to 
the district office in whose service area the destination facility is 
located. Mixed loads of Periodicals and Standard Mail or Package 
Services mail require advance appointments for deposit. For DDU rate 
mail entered under exceptional dispatch, the application for 
exceptional dispatch required under D210 serves as a request for 
standing appointments.
* * * * *

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:]
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 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

    [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 deduct the Preferred rate discount until 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

[[Page 78574]]

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.]
* * * * *
    [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:]
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. A 
residual shape surcharge also is 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. 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).
    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

    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, amend to provide for the residual 
shape surcharge, and to add as the first sentence the first sentence of 
previous E612.4.5 to read as follows:]

5.6  Net Postage

    Postage is computed at the applicable rates on the entire mailing 
to be mailed at one time. 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).
    [Remove E612.4.5.]
    [Remove E612.4.6. This section is no longer needed because all 
Package

[[Page 78575]]

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 to text.]
    [Redesignate E611.1.6 as 6.2; and amend by adding ``(R900)'' at the 
end of the sentence; no other changes to 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 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 allow 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. Pieces mailed with 
detached address labels under A060 is not eligible for any special 
services.

9.2  Additional Preparation Requirements

    Pieces 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 Presorted rate machinable parcels 
(C050) that are subject to the residual shape surcharge in 3.0, bear a 
correct, readable barcode under C850 for the ZIP Code shown in the 
delivery address; and are prepared as machinable parcels under M045 or 
M610. Machinable parcels entered at the DSCF rates are eligible for the 
barcoded discount only if prepared in 5-digit sacks or on 5-digit 
pallets (i.e., are not prepared in ASF, BMC, or mixed BMC sacks or 
pallets). Machinable parcels claiming the DBMC rates that are entered 
at an ASF are not eligible for the barcoded discount except that 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 to 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

[[Page 78576]]

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.]
* * * * *

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'' 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, 
and E714.
    [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'' and by 
deleting references to electronic documents to read as follows:]

1.3  Postal Inspection

    Package Services mail is not 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 to 
text.]
    [Redesignate existing E611.1.4 as E710.1.5 and amend by replacing 
``Standard Mail'' with ``Package Services''; no other changes to text.]
    [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

[[Page 78577]]

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 to text.]
    [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 authorized or directed to deposit such mailings at another 
postal facility when processing or logistics make such an 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.
    [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 (including Parcel Select) 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 (including Parcel Select) 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 (including Parcel Select) rate 
categories: Intra-BMC, Inter-BMC, destination bulk mail center (DBMC), 
destination sectional center facility (DSCF), and destination delivery 
unit (DDU). Destination entry rates are named Parcel Select. Intra-BMC 
and Inter-BMC Parcel Post rates and DBMC Parcel Select rates are 
calculated based on the zone to which the parcel is addressed and the 
weight of the parcel. DSCF and DDU Parcel Select 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. Nonmachinable pieces (C050.4.1 and C700) mailed at 
Intra-BMC rates are subject to a nonmachinable surcharge in addition to 
the postage rate.
    b. Inter-BMC rates apply to all Parcel Post that originates in the 
service area of a BMC or ASF or in Alaska, Hawaii, or Puerto Rico and 
destinates outside that area, state, or territory. Nonmachinable pieces 
(C050.4.1 and C700) mailed at Inter-BMC rates are subject to a 
nonmachinable surcharge in addition to the postage rate.
    c. 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 (E751)) 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.
    d. 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

[[Page 78578]]

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.
    e. 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 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.
    f. The barcoded discount applies to Parcel Post (including Parcel 
Select) 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 (including Parcel Select) 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.
    g. The applicable oversized rate applies to pieces that measure 
over 108 inches but that are not more than 130 inches in combined 
length and girth.
    h. 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, 893, 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, 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 E630.1.5 as E711.2.3 and change the reference in the 
last sentence to R700; no other changes to text.]
* * * * *
    [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 a subclass of Package Services. 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.

[[Page 78579]]

    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 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 M722.
    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.
    d. Barcoded Discount. The barcoded discount applies to BPM 
machinable parcels (C050.4.1) that bear a correct, readable barcode 
under C850 for the ZIP Code of the delivery address and are part of a 
single-piece rate mailing of 50 or more BPM pieces or are part of a 
Presorted rate mailing of at least 300 BPM pieces. Matter mailed at 
Presorted rates must be prepared under the machinable parcel 
preparation standards in M045 and M720. The barcoded discount is not 
available for pieces mailed at Presorted DDU or DSCF rates, or for 
Presorted DBMC rate mailings entered at an ASF other than Phoenix, AZ, 
ASF. Carrier Route rate mail is not eligible for the barcoded discount.
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 M045 or 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 Product, 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 M045 or M723.
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.
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.
* * * * *
    [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 
E710 and those below. Media Mail rates are based on the weight of the 
piece without regard to zone. The rate categories and discounts 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. 5-Digit Presort Rate. The 5-digit Presort rate applies to a 
mailing of at least 500 pieces of Media Mail that meets the other 
requirements of 4.0 and that is prepared and presorted to 5-digit ZIP 
Codes as specified in M730 or M041 and M045.
    c. BMC Presort Rate. The BMC Presort rate applies to a mailing of 
at least 500 pieces of Media Mail that meets the other requirements of 
4.0 and that is prepared and presorted to bulk mail centers as 
specified in M730 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Media Mail 
machinable parcels (C050) 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 
barcoded discount is not available for 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 from 
``Standard Mail (A)'' to ``Standard Mail'' and the 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:]

[[Page 78580]]

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 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 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 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 postmaster of the mailing office. 
The postmaster may require 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, 
whichever comes first. 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 discounts 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 Presort rate applies to a 
mailing of at least 500 pieces of Library Mail that meets the other 
requirements of 3.0 and is prepared and presorted to 5-digit ZIP Codes 
as specified in M740 or M041 and M045.
    c. BMC Presort Rate. The BMC Presort rate applies to a mailing of 
at least 500 pieces of Library Mail that meets the other requirements 
of 3.0 and is prepared and presorted to bulk mail centers as specified 
in M740 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Library Mail 
machinable parcels (C050) that are included in a mailing of at least 50 
pieces of Library 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 
barcoded discount is not available for pieces mailed at 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.]

[[Page 78581]]

    [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 new E715.]

E715  Bulk Parcel Post

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

E750  Destination Entry

    [Add new heading E751 to read as follows:]

E751  Parcel Select

    [Redesignate E652.1.0 as E751.1.0.]
1.0  BASIC STANDARDS

1.1  Definitions

    [Amend 1.1 to change cross reference M630 to M710; no other changes 
to text.]
    [Amend 1.2c to add provisions for PVDS mailings to read as 
follows:]

1.2  General

    For Parcel Post mailings claimed at DBMC, DSCF, or DDU rates, 
pieces must meet the applicable standards in 1.0 through 6.0 and the 
following criteria:
* * * * *
    c. Be part of a single mailing of 50 or more pieces that are 
eligible for and claimed at any Parcel Post rate or rates. When Parcel 
Post 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 50-piece minimum volume 
requirement for destination entry rate mailings. This means that a 
mailer may enter fewer than 50 pieces at an individual destination, 
provided there is a total of at least 50 Parcel Post pieces for all of 
the entry points for that single mailing job listed on the PVDS 
register or PVDS postage statement.

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 through 4.13 as E751.4.0 through 4.13 and 
amend to read as follows:]
4.0  DEPOSIT
* * * * *

4.2  Mail Separation and Presentation

    [Amend 4.2 to change the reference from 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% Periodicals and shipments of perishables, and amend 
4.4d by changing ``Standard Mail (B)'' to ``Package Services'' to read 
as follows:]
    Appointments must be made for destination entry rate mail as 
follows:
    a. Except for local mailers, for shipments containing 100% 
Periodicals mail and for 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 one 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

    [Redesignate the text of current 4.5 as 4.5a and add new 4.5b and c 
to clarify that scheduling exceptions are also made for shipments 
containing 100% Periodicals and shipments of perishables to read as 
follows:]
    a. The scheduling standard in 4.4 does 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 system authorization. Under this 
exception, the mailer may claim the DBMC rates for mailings or portions 
of such mailings deposited at the local post office if the local post 
office is the DBMC/ASF or designated SCF that meets the application 
standards.
    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% 
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 rates 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 entry rate pieces prepared for deposit at different 
destination post offices must be presented as separate mailings meeting 
separate minimum volume

[[Page 78582]]

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 BPM or Carrier Route BPM 
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 300-piece minimum volume requirements for 
Presorted and Carrier Route mailings. 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.

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.

1.4  Mailing Fee

    A destination entry mailing fee (R700) must be paid once each 12-
month period at each postal facility where the mailing(s) are verified. 
The fee may be paid in advance only for the next 12-month period and 
only during the last 60 days of the current service period. The fee 
charged is that in effect on the date of payment.

1.5  Documentation

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

1.6  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 
E751.1.3.
    d. Are placed in a sack or pallet 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 E751.1.3).

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. Use the ``label to'' ZIP Code of the ADC to assign ADC 
packages to the respective mixed ADC sack. Use the address on the 
mailpieces to assign pieces to the respective mixed ADC package. 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 be 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 also may 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 E751.1.3 are eligible for 
DBMC rates (i.e., mail for 3-digit ZIP Codes served by an ASF in 
Exhibit E751.1.3 are not eligible for DBMC rates, nor are 3-digit ZIP 
Codes that do not appear on Exhibit E751.1.3). 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 E751.1.3.

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. Use the ``label to'' ZIP Code for 
the ADC to assign ADC packages to the respective mixed ADC sack. Use 
the address on the parcels to assign parcels to the respective mixed 
ADC package or sack, as appropriate. Mail must be 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 be 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 be 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 be entered 
at the appropriate facility under 2.1.
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES

3.1  General Eligibility

    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.

[[Page 78583]]

    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. 
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 pallet that is labeled to the SCF 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 be 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 be entered at the appropriate facility under 3.1.

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. Mail must be 
entered at the appropriate facility 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. Mail 
must be entered at the appropriate facility under 3.1.

3.6  Carrier Route Machinable Parcels

    Carrier Route machinable parcels in individual carrier route sacks 
may claim DSCF rates. Mail must be 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 be entered at the appropriate facility 
under 3.1.
4.0  DESTINATION DELIVERY UNIT (DDU) RATES

4.1  General Eligibility

    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. Are addressed for delivery within the ZIP Code(s) served by the 
destination delivery unit.
    c. Are deposited:
    (1) For Carrier Route flats, at the DDU where the carrier cases the 
mail, as shown in the Drop Shipment Product.
    (2) For Presorted flats, the Drop Shipment Product must be used to 
determine the correct destination entry facility for the 5-digit sorted 
flats entered at Presorted rates. If the Drop Shipment Product lists 
multiple facilities for a single 5-digit ZIP Code, then the mailer must 
inquire about the correct drop site when contacting the DDU to schedule 
an appointment.
    (3) For all irregular parcels and machinable parcels, the Drop 
Shipment Product must be used to determine the 5-digit destination. 
When the Drop Shipment 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 Shipment 
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 must unload the pallets into a 
container specified by the delivery unit.

4.2  Presorted Flats

    Presorted flats that weigh more than 1 pound in 5-digit sacks, on 
optional 5-digit scheme or required 5-digit pallets, or prepared as 
bedloaded 5-digit packages may claim DDU rates. Mail must be entered at 
the appropriate facility under 4.1. Presorted flats weighing 1 pound or 
less 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. Mail must be entered at the appropriate facility 
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. Mail 
must be 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. Mail must be entered at the 
appropriate facility under 4.1.

4.6  Carrier Route Machinable Parcels

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

4.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks at both sort levels, on 5-
digit pallets, or prepared as bedloaded packages may claim DDU rates. 
Mail must be 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 
(P950) 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

[[Page 78584]]

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.

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

6.2  Freight

    Drop shipments are freight until deposited and accepted as mail at 
the destination facility.

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.

[[Page 78585]]

6.8  Recurring Appointments

    Recurring appointments refer 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 
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.
    [Add new E753 for combining Package Services parcels to read as 
follows:]

E753  Combining Package Services Parcels for DSCF and DDU Entry 1.0

1.0  COMBINING PARCELS
    Package Services parcels--Parcel Post, Parcel Select, Bound Printed 
Matter, Media Mail, and Library Mail--may be combined, at the mailer's 
option and when authorized by the USPS, in the same 5-digit sack(s) or 
pallet(s) for entry either at a destination sectional center facility 
(DSCF) or a destination delivery unit (DDU). All applicable fees for 
presort and drop shipment must be paid and applicable minimum volume 
requirements for Presort rates and Parcel Select rates must be met. 
Combined Package Services mailings must meet the standards in E750, 
except as provided by this section. Parcels may not be combined for 
entry at a destination bulk mail center (DBMC). Carrier Route Bound 
Printed Matter may not be combined with other parcels under these 
standards. Presorted Media Mail and Presorted Library Mail claimed at 
BMC rates may not be combined with other parcels under these standards. 
Parcels combined under these standards are not eligible for the 
barcoded discount.

1.1  Basic Standards

    Package Services parcels that qualify as machinable, nonmachinable, 
and irregular under C050 and meet the following conditions may be 
combined in the same 5-digit sack(s) or pallet(s) under these 
conditions:
    a. Minimum volume requirements for Parcel Select, Presorted Bound 
Printed Matter, Presorted Library Mail, and Presorted Media Mail must 
be met separately before combining.
    b. Postage must be paid via permit imprint under an approved 
manifest mailing system as provided in P910.
    c. All parcels must be prepared in sacks under 2.0 or on pallets 
under 3.0. For mail entered at the DSCF rates, pallet preparation is 
not permitted for 5-digit ZIP Codes that are 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. 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.
    d. Pieces may be claimed at single-piece rates, Presorted rates, 
and destination entry rates under 2.1 or 3.1.
    e. Separate postage statements must be prepared for each subclass 
and destination entry rate as appropriate.
    f. The deposit of combined Package Services mail at a DSCF or DDU 
must be in accordance with applicable drop shipment standards.

1.2  Authorization

    Mailers apply for RCSC authorization to combine parcels as part of 
a manifest mailing agreement (P910). Current manifest mailers can apply 
for additional authorization to combine parcels. This authorization may 
not exceed two years.
2.0  COMBINED PARCELS PREPARED IN SACKS

2.1  Rate Eligibility

    In addition to the applicable standards in E750 for destination 
entry Package Services, the following standards apply for combined 
Package Services mail prepared in sacks:
    a. Parcel Select DSCF rates apply to parcels that are contained in 
5-digit sacks, each containing at least 10 pieces of any combination of 
Package Services mail, or contained in overflow sacks

[[Page 78586]]

under 2.2, provided all other requirements for the DSCF rate in E751 
are met. Parcel Select DDU rates apply to parcels that are contained in 
5-digit sacks, each containing at least 10 pieces of any combination of 
Package Services mail, or contained in overflow sacks under 2.2, 
provided all other requirements for the DDU rate in E751 are met.
    b. Presorted Bound Printed Matter DSCF rates apply to parcels that 
are contained in 5-digit sacks, each containing at least 10 pieces of 
any combination of Package Services mail, or contained in overflow 
sacks under 2.2, provided all other requirements for the DSCF rate in 
E752 are met. Presorted Bound Printed Matter DDU rates apply to parcels 
that are contained in 5-digit sacks, each containing at least 10 pieces 
of any combination of Package Services mail, or contained in overflow 
sacks under 2.2, provided all other requirements for the DDU rate in 
E752 are met.
    c. Presorted Library Mail 5-digit rates apply to parcels that are 
contained in 5-digit sacks, each containing at least 10 pieces of any 
combination of Package Services mail, or contained in overflow sacks 
under 2.2.
    d. Presorted Media Mail 5-digit rates apply to parcels that are 
contained in 5-digit sacks, each containing at least 10 pieces of any 
combination of Package Services mail, or contained in overflow sacks 
under 2.2.
    e. Single-piece rate Parcel Post, Bound Printed Matter, Library 
Mail, and Media Mail parcels that are contained in 5-digit sacks, each 
containing at least 10 pieces of any combination of Package Service 
mail, or contained in overflow sacks under 2.2, qualify for their 
applicable single-piece rates.

2.2  Sack Preparation

    Only 5-digit sacks may be prepared. Each sack of combined Package 
Services mail must contain at least 10 pieces. One overflow sack 
containing fewer than 10 pieces is permitted per 5-digit destination.

2.3  Sack Labeling

    Sack labels must be prepared as follows:
     a. For Line 1, use 5-digit ZIP Code on mail.
    b. 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, the following standards apply for combined 
Package Services mail prepared on pallets:
    a. Parcel Select DSCF rates apply to pieces that are prepared on 5-
digit pallets, each containing at least 50 pieces and 250 pounds or 36 
inches of Package Services mail, or contained in overflow sacks under 
3.3, and deposited at a DSCF under E751. Parcel Select DDU rates apply 
to pieces that are prepared on 5-digit pallets, each containing at 
least 50 pieces and 250 pounds or 36 inches of Package Services mail, 
or contained in overflow sacks under 3.3, and deposited at a DDU under 
E751.
    b. Presorted Bound Printed Matter DSCF rates apply to pieces that 
are prepared on 5-digit pallets, each containing at least 50 pieces and 
250 pounds or at least 36 inches of Package Services mail, or contained 
in overflow sacks under 3.3, and deposited at a DSCF under E752. 
Presorted Bound Printed Matter DDU rates apply to pieces that are 
prepared on 5-digit pallets, each containing at least 50 pieces and 250 
pounds or at least 36 inches of Package Services mail, or contained in 
overflow sacks under 3.3, and deposited at a DDU under E752.
    c. Presorted Library Mail 5-digit rates apply to pieces that are 
prepared on 5-digit pallets, each containing at least 50 pieces and 250 
pounds or 36 inches of Package Services mail, or contained in overflow 
sacks under 3.3.
    e. Presorted Media Mail 5-digit rates apply to pieces that are 
prepared on 5-digit pallets, each containing at least 50 pieces and 250 
pounds or 36 inches of Package Services mail, or contained in overflow 
sacks under 3.3.
    f. Single-piece rate Parcel Post, Bound Printed Matter, Library 
Mail, and Media Mail parcels that are prepared on 5-digit pallets, each 
containing at least 50 pieces and 250 pounds or 36 inches of Package 
Services mail, or contained in overflow sacks under 3.3, qualify for 
their applicable single-piece rates.

3.2  Pallet Preparation

    Only 5-digit pallets may be prepared. Each 5-digit pallet of 
combined Package Services mail must contain at least: (1) 50 parcels 
and 250 pounds of mail, or (2) 36 inches mail (excluding the height of 
the pallet). Pallets prepared using either minimum requirement may be 
combined in the same mailing.

3.3  Overflow Sacks

    If, after filling a pallet(s) to a 5-digit destination, pieces 
remain that do not meet the minimum pallet requirements, they may be 
prepared in 5-digit overflow sacks and labeled under 2.2.

3.4  Pallet Labeling

    Pallet labels must be prepared as follows:
    a. For Line 1, use city, state, and 5-digit ZIP Code on mail.
    b. For Line 2, use ``PSVC PARCELS 5D.''
4.0  DOCUMENTATION
    Separate postage statements are required for each of the separate 
mailings contained within the combined mailing. All postage statements 
must be provided at the time of mailing and must be accompanied by a 
RCSC approved manifest prepared in accordance with P910 and this 
section.

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, and 
add new item e 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 at no 
additional cost. All insured Standard Mail and Package Services mail is 
forwarded or returned.
    c. Parcels with special handling that are undeliverable as 
originally addressed and forwarded to the addressee continue to receive 
special handling service without an additional special handling fee.
* * * * *
    e. All registered mail items are treated as registered while they 
are being forwarded or returned.
* * * * *
    [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

[[Page 78587]]

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.'' Remove item 5.4c. Add new item 5.4c to read as follows:]
    Undeliverable Package Services 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:]

 
----------------------------------------------------------------------------------------------------------------
                            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''; 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 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''; 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.]
    [Amend 3.7 by adding Delivery Confirmation and Signature 
Confirmation to read as follows:]

3.7  Special Services

    Certified, collect on delivery (COD), Delivery Confirmation, 
insured, registered, Signature Confirmation, and special handling mail 
is forwarded without additional special service fees, subject to the 
applicable postage charge (to a domestic address only).

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

1.0  ADDRESS CORRECTION SERVICE
* * * * *

[[Page 78588]]

    [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 to read as follows:]
    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. 
Mailers who choose to do so 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''; no other changes to text.]
* * * * *

G  GENERAL INFORMATION

G000  The USPS and Mailing Standards

* * * * *

G090  Experimental Classifications and Rates

G091  NetPost Mailing Online

    [In G091, change all references from ``Standard Mail (A)'' to 
``Standard Mail.'']
* * * * *
3.0  FUNCTIONALLY EQUIVALENT SYSTEMS
    [Amend the third sentence of 3.0 to provide for an increase in the 
fee for certification of a system as functionally equivalent to Mailing 
Online from $100 to $125, to read as follows:]
    * * * Certification of functional equivalence requires payment of a 
$125 fee and demonstration that the service in comparable to NetPost 
Mailing Online service and capable of all of the following as specified 
by the USPS: * * *
* * * * *

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-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.

[[Page 78589]]

    (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 final rule reflect 
those changes.]
    [Redesignate 1.3f through 1.3z as 1.3h through 1.3ab, respectively, 
and 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, they must be prepared 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 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:]
    p. * * * 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 redesignated 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.]

[[Page 78590]]

    [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 2.1c 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'' to read as follows:]
3.0  MARKINGS--PACKAGE SERVICES

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 (destination entry Parcel Post) 
mailing 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:]
    Each piece of Media Mail mailed at a presorted rate must bear the 
required marking ``Presorted'' or ``PRSRT'' in addition to the basic 
marking specified in 3.1. This additional marking 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.
    [Amend the heading of 3.5 by changing ``Other'' to ``Additional'' 
and revise to read as follows:]

3.5  Additional Library Mail Markings

    Each piece of Library Mail mailed at a presorted rate must bear the 
required marking ``Presorted'' or ``PRSRT'' in addition to the basic 
marking specified in 3.1. This additional marking 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.
* * * * *
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:]

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

* * * * *
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:]

[[Page 78591]]



----------------------------------------------------------------------------------------------------------------
        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).
ADC...........................  Standard Mail irregular parcels..................  L603
Mixed ADC.....................  First-Class Mail (except automation letters).....  L002, Colum C
Mixed ADC.....................  Periodicals (except automation letters), Standard  L004
                                 Mail (except Presorted rate irregular and
                                 machine parcels), Presorted Bound Printed Matter
                                 (except machinable parcels).
Mixed ADC.....................  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

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 incurring injury to USPS employees. Heavy-
gauge shrinkwrap over plastic banding, shrinkwrap alone, or banding 
material alone 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 ``logical'' package (the total group of pieces for a package 
destination) of Bound Printed Matter must meet the applicable minimum 
package size prescribed in M045 or M722. The pieces in the ``logical'' 
package must then be secured in a physical package or packages. 
Wherever possible, each physical package for a logical package 
destination should contain at least the minimum package size. The size 
of each physical package for a specific logical package destination 
may, however, contain the exact package minimum, more pieces than the 
package minimum, or fewer pieces than the package minimum depending on 
the size of the pieces in the mailing or the total quantity of the 
pieces to that destination. However, except for mixed ADC packages and 
for carrier route packages prepared in sacks, each physical package of 
Bound Printed Matter must contain at least two pieces. For Carrier 
Route rate mail prepared in sacks, the ``last physical package'' to an 
individual carrier route destination may consist of a single addressed 
piece, provided that all other packages to that carrier route 
destination contain at least two addressed pieces, and that the total 
group of pieces to that carrier route (the ``logical'' package) meets 
the Carrier Route rate eligibility minimum in E712. Packages prepared 
on pallets must meet the additional packaging requirements under M045 
and each physical package, including carrier route rate mail, must 
always contain at least two pieces.
    [Amend the heading and the introductory phrase of redesignated 1.6 
to read as follows:]

1.6  Package Size--Other Mail Classes

    Except for 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 FLAT-SIZE 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 and, for First-Class Mail, under M820.3.0.
* * * * *
    [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
    All facing slips used on carrier route packages must show this 
information:
* * * * *

M030  Containers

M031  Labels

* * * * *
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
* * * * *

[[Page 78592]]

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 mail class names to read as 
follows:]
    Pallet labels must be pink for Periodicals mail or white for 
Standard Mail and Package Services mail. Pallet labels must measure at 
least 8 inches by 11 inches.
* * * * *
    [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. 5-digit pallets of Bound Printed Matter irregular 
parcels that contain only carrier route rate mail also must show the 
words ``CARRIER ROUTES'' (or ``CR-RTS'') after the ``5D'' pallet level 
description on the contents line under M045.
    [Amend the heading of 4.8 to read as follows:]

4.8  Automation/Nonautomation Status

    [Amend 4.8 (as it appeared in Postal Bulletin 22036, 11-2-00) by 
changing ``Standard Mail (A)'' to ``Standard Mail'' to read as 
follows:]
    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 and 5-digit scheme pallets must 
show ``NONBARCODED'' or ``NBC'' on the contents line if the pallet 
contains Presorted rate mail under M045, M920, M930, and M940. Except 
for machinable parcels, all Periodicals and Standard Mail 3-digit, SCF, 
ADC, ASF, BMC, Mixed ADC, and Mixed BMC pallets must show 
``NONBARCODED'' or ``NBC'' on the contents line if the pallet contains 
Presorted rate and/or carrier route mail under M045, M920, M930, and 
M940. If a pallet contains copalletized automation rate and Presorted 
rate mail, or, for 3-digit, SCF, ADC, ASF, BMC, Mixed ADC, or Mixed BMC 
pallets, contains copalletized automation rate, Presorted rate, and 
carrier route mail, the separate ``BARCODED'' and ``NONBARCODED'' 
designations may be abbreviated ``BC/NBC.'' (Note: if one of these 
pallets contains carrier route rate mail, but not Presorted rate mail, 
``NONBARCODED'' or ``NBC'' is not required until July 15, 2001.)
    [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

    Extraneous information is permitted no pallet labels if:
* * * * *
    [Amend 4.9c to reflect changes in mail 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
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

[[Page 78593]]

 
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 MAIL,'' ``Special 
Standard Mail'' with ``Media Mail,'' and making other changes in 
content line information to read as follows:]

----------------------------------------------------------------------------------------------------------------
               Class and mailing                   CIN                  Human-readable content 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 routes sacks.......       659  PSVC FLTS CR-RTS SCH
    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
Carrier Route Bound Printed Matter--Machinable
 Parcels:
    carrier route sacks.......................       687  PSVC MACH CR\1\
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
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

[[Page 78594]]

 
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''; 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 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 when one or more full trays for that destination 
are also prepared.
    g. For automation rate mailings prepared under the optional tray-
based preparation rules in M820, if 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, then 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 final 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'' and to delete the phrase ``and bundles'' to read as 
follows:]
    Pallet preparation and pallet sortation are subject to the specific 
standards in M045, M920, M930, and M940. Pallet sortation is generally 
intended to presort the palletized portion of a mailing to at least the 
finest extent required for the corresponding class of mail and method 
of preparation. Pallet sortation is sequential from the lowest (finest) 
level to the highest and must be completed at each required level 
before the next optional or required level is prepared. Standard 
preparation terms for pallets are defined in M011, standard presort 
levels are defined in M045, and advanced presort levels are defined in 
M920, M930, and M940. For sacks, trays, or machinable parcels on 
pallets, the mailer must prepare all required pallet levels before any 
mixed ADC or mixed BMC pallets are prepared for a mailing or job. 
Packages prepared under M045 or M920, M930, or M940 must not be placed 
on mixed ADC or mixed BMC pallets. Packages that cannot be placed on 
pallets must be prepared in sacks under the standards for the rate 
claimed. The standards for package reallocation to protect the SCF or 
BMC pallet (M045.5.0 and 6.0) are optional methods of pallet 
preparation designed to retain as much mail as possible at the SCF or 
BMC level. These standards may result in some packages of Periodical 
flats and irregular parcels and Standard Mail (A) flats that are part 
of a mailing job prepared in part as palletized flats at automation 
rates not being placed on the finest level of pallet possible. Mailers 
must use PAVE-certified presort software to prepare mailings using 
package reallocation (package reallocation is optional, but if

[[Page 78595]]

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

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 (except for 
Parcel Post BMC Presort and OBMC Presort, and except for Parcel Select 
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 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 appeared 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 letter-size Standard Mail and Periodicals 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 (5-digit pallets or 5-digit 
scheme pallets). Exception: When nonletter-size Periodicals and flat-
size Standard Mail is prepared under h, 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 
PIECES
* * * * *
    [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'' 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. Mail that cannot be placed on pallets under 2.0 and 3.0 
must be prepared in sacks under the applicable provisions of M200, 
M600, and M700. Sacks containing packages for mixed ADC destinations, 
or containing packages remaining after all pallets are prepared, may be 
presented with the palletized portion of the mailing job (and, subject 
to 8.5, reported on the same postage statement) if the sacks are set 
apart from the palletized portion of the mailing job.
    [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:]

[[Page 78596]]

2.2  Basic Packaging Standards

    Package preparation for Periodicals, Standard Mail, and Bound 
Printed Matter must meet the general standards in M010 and 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''; 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

    Bound Printed Matter on pallets must be packaged as follows:
    a. Presorted Bound Printed Matter:
    (1) Only individual pieces of flats or irregular parcels that weigh 
less than 10 pounds may be prepared as packages on pallets. Pieces that 
individually weigh 10 or more pounds must be prepared and palletized as 
machinable parcels under 3.5 or prepared in sacks under M722.
    (2) Packages must be prepared to the package destinations in M722. 
The minimum package size is 10 addressed pieces or 10 pounds, whichever 
occurs first, except that the last package to a presort destination may 
contain fewer than 10 pieces or weigh less than 10 pounds. See 2.5c for 
a definition of the ``whichever comes first'' packaging requirement. 
When there are at least 10 pieces but fewer than 10 pounds for a 
presort destination, the pieces must be prepared in a single physical 
package. The maximum physical package size is 20 pounds, except that 5-
digit packages that will be placed on a 5-digit scheme (flats only) 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. Each physical package must be 
labeled using optional endorsement lines or pressure sensitive labels 
under M722.
    b. Carrier Route Bound Printed Matter:
    (1) Only individual pieces of flats or irregular parcels that weigh 
less than 10 pounds may be prepared as packages on pallets. Pieces that 
individually weigh 10 or more pounds must either be prepared and 
palletized as machinable parcels under 3.5 and pay the Presorted rates, 
or be prepared in sacks to qualify for the Carrier Route rates under 
M723.
    (2) The 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 contain fewer than 10 pieces or 
weigh less than 10 pounds. See 2.5c for a definition of the ``whichever 
comes first'' packaging requirement. When there are at least 10 pieces 
but fewer than 10 pounds for a presort destination, the pieces must be 
prepared in a single physical package. The maximum physical 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 route 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. Each 
physical package must be labeled to the carrier route with facing slips 
under M723, optional endorsement lines under M013, or carrier route 
information lines under M014.
    c. Minimum Package Size. Package mail under the minimum package 
size of ``10 pieces or 10 pounds, whichever comes first'' according to 
these standards:
    (1) For identical-weight pieces, a single-piece weight of one pound 
results in 10 pieces weighing 10 pounds. Identical-weight pieces 
weighing one pound or less must be prepared using the 10-piece minimum; 
those that weigh more must be prepared using the 10 pound minimum.
    (2) For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies). Alternatively, package by the actual 
piece count or mail weight for each package destination, provided 
documentation can be provided with the mailing that shows (specifically 
for each package) the number of pieces and their total weight.
    (3) Mailers must note on the accompanying postage statement whether 
they applied the 10-piece or 10-pound threshold, or both.
    [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 
who do not 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.''

[[Page 78597]]

    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. 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. Mixed BMC (for sacks on pallets only). Optional. May contain 
Carrier Route and/or Presorted rate mail.
    (1) Line 1: ``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'' followed by ``WKG.''

3.4  Bound Printed Matter Irregular Parcels--Packages and Sacks on 
Pallets

    Mailers must prepare pallets in the sequence listed below. Pallets 
must be labeled 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. 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. 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.''
    f. Mixed BMC (for sacks on pallets only). Optional. May contain 
Carrier Route and/or Presorted rate mail.
    (1) Line 1: ``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'' 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 this section as an option. 
If Parcel Post is optionally sorted under this section, it must meet 
all the requirements of this section. 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: 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: 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: ``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 the title of 3.6 to read as follows:]

3.6  Presorted Media Mail and Library Mail

    [Amend 3.6a(2) by changing ``STD'' and ``STD B'' to ``PSVC.'']
    [Amend 3.6b by changing ``Destination BMC'' to ``BMC'' and by 
changing ``STD'' and ``STD B'' to ``PSVC.]
    [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:]

[[Page 78598]]

5.0  PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL FLATS 
ON PALLETS
* * * * *
6.0  PALLETS OF PACKAGES, SACKS, AND TRAYS
* * * * *
    [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

    [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 applicable.
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 replacing ``M630'' with ``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 E751.8.0'' 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.]
* * * * *

[[Page 78599]]

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 the heading of 2.4 to ``Package Services'' to read as 
follows:]

2.4  Package Services

    [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''; 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''; no other changes to text.]
    [Amend 1.6a by replacing ``Standard Mail (A)'' with ``Standard 
Mail,'' by changing ``10 pieces/20 pounds/1,000 cubic inches'' to ``10 
pieces or 20 pounds,'' and by changing ``Exhibits E651.5.1 and 
E652.1.3'' to ``Exhibits E650.5.1 and E751.1.3.'']
    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''; 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''; no other changes to text.]

2.3  Postage Payment

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

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''; 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''; 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''; no other changes to text.]
* * * * *
    [Amend 3.7c by replacing ``Standard Mail'' with ``Standard Mail and 
Package Services''; 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 to 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.]
* * * * *
    [Amend 4.8 by replacing ``STD A IRREG'' with ``STD IRREG'' and by 
replacing ``STD A MACH'' with ``STD MACH,'' no other changes to text.]
5.0  MACHINABLE PARCELS
* * * * *
    [Amend 5.3 by replacing ``STD A MACH'' with ``STD MACH,'' 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.'']
* * * * *
4.0  SACK PREPARATION--FLAT-SIZE PIECES AND IRREGULAR PARCELS
* * * * *
    [Amend 4.3 by replacing ``STD A IRREG'' with ``STD IRREG,'' no 
other changes to text.]
5.0  RESIDUAL PIECES
    [Amend 5.0 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]

[[Page 78600]]

    [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.
    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 the mailing is 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, then 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 M710.1.4; 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 for verification, 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 under either of 
the following:
    a. P910 or P930; or
    b. All of these conditions:
    (1) 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).
    (2) 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.
* * * * *
    [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, other documentation 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 changes to 
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 on pallets 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 sack, and sacks must be 
separated by zone when presented to the USPS.

4.2  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 (see M031 for military mail).
    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.

[[Page 78601]]

    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.''
* * * * *
    [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 not a machinable parcel as defined in C050.4.1 or a flat as defined 
in C050.3.1. Irregular parcels also are 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 be 
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.

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, 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  Required Packaging

    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 are 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 physical package must 
contain at least 2 addressed pieces (except mixed ADC packages). 
Packaging also is subject to these conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 10-piece minimum; those that weigh more than 1 pound 
must be prepared using the 10-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies), or package by the actual piece count or 
mail weight for each package, if documentation can be provided with the 
mailing that shows the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.

2.2  Package Preparation

    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 (no minimum); tan Label MXD or OEL.

2.3  Required Sacking

    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 are volumes not permitted (except mixed 
ADC sacks). Optional SCF sacks may only be prepared when there are at 
least 20 addressed pieces or 20 pounds, whichever occurs first. Smaller 
volumes are not permitted. Sacking also is subject to these conditions:

[[Page 78602]]

    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 20-piece minimum; those that weigh more than 1 pound 
must be prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 20-piece 
or 20-pound minimum applies), or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

2.4  Sack Preparation

    Required 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 (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.

2.5  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 LESS THAN 10 
POUNDS

3.1  Required Packaging

    Packaging is not required for pieces placed in 5-digit sacks when 
such pieces are enclosed in an envelope, full-length sleeve, full-
length wrapper, or polybag, and the minimum package size is met. 
Otherwise, 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 are not permitted 
(except 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). Packaging also is subject to these 
conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 10-piece minimum; those that weigh more than 1 pound 
must be prepared using the 10-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies), or package by the actual piece count or 
mail weight for each sack, if documentation can be provided with the 
mailing that shows the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.

3.2  Package Preparation

    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; (no minimum): tan Label MXD or OEL.

3.3  Required Sacking

    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 are not permitted (except mixed 
ADC sacks). Optional SCF sacks may only be prepared when there are at 
least 10 addressed pieces or 20 pounds, whichever occurs first. Smaller 
volumes are not permitted. Sacking also is subject to these conditions:
    a. Identical-weight pieces weighing two pounds or less must be 
prepared using the 10-piece minimum, those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies). Alternatively, sack by the actual piece 
count or mail weight for each package destination, provided that 
documentation can be provided with the mailing that shows (specifically 
for each sack) the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

3.4  Sack Preparation

    Required 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.

3.5  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.''

3.6  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 10 POUNDS OR MORE

4.1  Piece Preparation

    Each piece must be enclosed in an envelope, full-length sleeve, 
full-length wrapper, or polybag. Packaging is not permitted for pieces 
weighing 10 pounds or more except under 4.5.

4.2  Required Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 20 pounds. Smaller

[[Page 78603]]

volumes are not permitted (except mixed ADC sacks). Optional SCF sacks 
may be prepared only when there are at least 20 pounds. Smaller volumes 
are not permitted.

4.3  Sack Preparation

    Required 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.

4.4  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.''

4.5  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  Required Sacking 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 are not permitted (except 
origin (mixed) BMC sacks). Sacking also is subject to these conditions:
    a. Identical-weight pieces that weigh two 2 pounds or less must be 
prepared using the 10-piece minimum; those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies) or sack by the actual piece count or mail 
weight for each package destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

5.2  Sack Preparation DBMC Rates Not Claimed

    Required sequence and Line 1 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.

5.3  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.''

5.4  Required Sacking 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 are not permitted (except 
origin (mixed) BMC sacks). Optional ASF sacks, if prepared, also must 
meet the minimum sack volume requirement. See E752 for DBMC rate 
eligibility. Sacking also is subject to these conditions:
    a. Identical-weight pieces that weigh two pounds or less must be 
prepared using the 10-piece minimum; those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies) or sack by the actual piece count or mail 
weight for each sack destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

5.5  Sack Preparation for DBMC Rates

    Required sequence and line 1 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. 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. 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.

5.6  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 not a machinable parcel as defined in C050.4.1 or a flat as defined 
in C050.3.1. Irregular parcels also are 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.

[[Page 78604]]

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 be 
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.

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 part of the same mailing job and reported on the same postage 
statement. Residual pieces paid at the Presorted rate do not need to 
meet a separate 300 piece minimum. These pieces must be separated from 
the Carrier Route portion when presented to the USPS for verification. 
Presorted flats weighing 1 pound or less are not eligible for DDU 
rates.
2.0  REQUIRED PREPARATION--FLATS

2.1  Required Packaging

    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. 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). Packaging also is subject to these conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 10-piece minimum; those that weigh more than 1 pound 
must be prepared using the 10-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 10-pound minimum applies), or package by the actual piece count or 
mail weight for each package, if documentation can be provided with the 
mailing that shows the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.

2.2  Required Sacking

    A direct 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 are not 
permitted. Remaining packages must be placed in a 5-digit scheme 
carrier routes sack and/or a 5-digit carrier routes sack, which have no 
minimum sack size. Carrier route sacking also is subject to these 
conditions:
    a. Identical-weight pieces that weigh 1 pound or less must be 
prepared using the 20-piece minimum; those that weigh more than 1 pound 
must be prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 20-piece 
or 20-pound minimum applies), or sack by the actual piece count or mail 
weight for each sack, if documentation can be provided with the mailing 
that shows (specifically for each sack) the number of pieces and their 
total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

2.3  Sack Preparation

    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 (see M031 for military mail).

2.4  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.''

2.5  Exception to Sacking

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

3.1  Package Preparation

    Packaging is not 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. The maximum weight of each physical

[[Page 78605]]

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). Packaging also is subject to these 
conditions:
    a. Identical-weight pieces that weigh two pounds or less must be 
prepared using the 10-piece minimum; those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies), or package by the actual piece count or 
mail weight for each package destination, provided that documentation 
can be provided with the mailing that shows (specifically for each 
package) the number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count, weight, or both.

3.2  Required Sacking

    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 are not 
permitted. Remaining packages must be placed in 5-digit carrier routes 
sacks, which have no minimum sack size. Carrier route sacks also are 
subject to these conditions:
    a. Identical-weight pieces that weigh two pounds or less must be 
prepared using the 10-piece minimum; those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must either use the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies), or sack by the actual piece count or mail 
weight for each sack destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

3.3  Sack Preparation

    Sack 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 (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).

3.4  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.''

3.5  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 10 POUNDS OR MORE

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: use 5-digit ZIP Code destination of the pieces.
    b. Line 2: ``PSVC IRREG CR,'' followed by the route type and 
number.
5.0  REQUIRED PREPARATION--MACHINABLE PARCELS

5.1  Required Carrier Route Sacking

    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 are not 
permitted. Carrier route sacks also are subject to these conditions:
    a. Identical-weight pieces that weigh two pounds or less must be 
prepared using the 10-piece minimum; those that weigh more must be 
prepared using the 20-pound minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum that applies to the average piece weight for the entire mailing 
(divide the net weight of the mailing by the number of pieces; the 
resulting average single-piece weight determines whether the 10-piece 
or 20-pound minimum applies), or sack by the actual piece count or mail 
weight for each sack destination, provided that documentation can be 
provided with the mailing that shows (specifically for each sack) the 
number of pieces and their total weight.
    c. Mailers must note on the accompanying postage statement whether 
they applied the piece count or weight.

5.2  Sack Label

    Required preparation:
    a. Line 1: Use 5-digit ZIP Code destination of the pieces.
    b. Line 2: ``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 presort, sacking, or labeling 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 changing ``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  Sacks or Packages on Pallet Preparation (5-Digit Rate)

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

[[Page 78606]]

digit (only); required (minimum of eight pieces/20 pounds, smaller 
volume not permitted); 40-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 2.3b 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 M740.1.3, 
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 an 
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 M740.2.3a 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 the exception to read as 
follows; and amend the fourth sentence by replacing ``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

2.1  Package Preparation

    [Amend 2.1a to make preparation of 5-digit packages optional to 
read as follows:]
    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).
* * * * *

2.2  Tray Preparation

    [Amend 2.2a to make preparation of 5-digit trays optional and to 
change ``M031'' to ``M032'' to read as follows:]
    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, use 5-digit ZIP Code destination 
of pieces (for military mail see 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 Packages of Automation and Presorted 
Mailings

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

[[Page 78607]]

P  POSTAGE AND PAYMENT METHODS

P000  Basic Information

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. 
Mailers may use a single advance deposit account to pay postage due 
charges for more than one special service (e.g., business reply mail, 
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 60 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''; 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 Mail 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]...............  3/5B
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

* * * * *

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 also may 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 amending the introductory paragraph to read as 
follows:]
    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.

[[Page 78608]]

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 through an advance deposit account 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. * * *
* * * * *

2.6  Keys and Identification Devices

    [Amend 2.6 by revising the second sentence to read as follows:]
    * * * 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 sentences.]
* * * * *
    [Amend the title of 5.0 by replacing ``Standard Mail (B)'' with 
``Package Services'' to read as follows:]
5.0  RATE APPLICATION--PACKAGE SERVICES
* * * * *
    [Revise the 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 the 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 to read as follows:]

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''; no other changes to text.]

2.4  Full Refund

    [Amend 2.4 by revising 2.4f and 2.4i to read as follows:]
    A full refund (100%) may be made when:
* * * * *
    f. Fees are paid for special handling, certified mail, Delivery 
Confirmation, or Signature Confirmation and the article fails to 
receive the special service for which the fee is paid.
* * * * *
    i. An annual presort mailing fee is paid for Presorted First-Class 
Mail, Standard Mail, Presorted Media Mail, or Presorted Library Mail or 
a destination

[[Page 78609]]

entry mailing fee is paid for destination entry Parcel Post and Bound 
Printed Matter and no mailings are made during the corresponding 12-
month period.
* * * * *
    [Effective November 5, 2000, the Postal Service added new P014.2.11 
to clarify procedures for refunds for stamps affixed to business reply 
mail.]
    [Amend the fourth sentence of 2.11 to add the new quarterly fee for 
Qualified Business Reply Mail:]

2.11  Business Reply Mail

    A business reply mail (BRM) permit holder may request a credit or 
refund for postage stamps affixed to returned BRM pieces. Only the 
value of the postage stamps affixed may be credited or refunded. 
Refunds are not given for foreign postage stamps affixed to BRM. To 
receive a refund for postage stamps affixed to returned BRM pieces, the 
permit holder must submit a completed Form 3533 to the postmaster, 
documenting the excess postage payment for which a credit or refund is 
desired. The permit holder also must present to the designated office 
properly faced and banded packages of 100 identical BRM pieces with 
identical amounts of postage affixed. A charge of $15 per hour, or 
fraction thereof, is assessed for the workhours used to process the 
refund. With permission from the postmaster, a BRM permit holder may 
submit a package with fewer than 100 BRM pieces. Refunds are not given 
for any BRM or QBRM per piece charges, annual accounting fees, 
quarterly fees, or monthly maintenance fees.
* * * * *
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''; no other changes 
to text.]
* * * * *

P021  Stamped Stationery

* * * * *
2.0  PERSONALIZED STAMPED ENVELOPE
* * * * *

2.5  Optional information

    [Amend 2.5b by changing ``Standard Mail (A)'' to ``Standard Mail''; 
no other changes to text.]
* * * * *

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''; no other changes to text.]
* * * * *
3.0  MAILER PRECANCELLATION
* * * * *

3.5  Content of Postmark

    [Amend 3.5a by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
* * * * *

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 to read as follows:]
     * * * 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/checking out fees.
* * * * *
4.0  METER STAMPS
* * * * *
    [Amend 4.8 and 4.9 by replacing ``Standard Mail'' with ``Standard 
Mail and Package Services''; no other changes to text.]
* * * * *
5.0  MAILINGS
    [Amend 5.1 by replacing ``Special Standard Mail'' with ``Media 
Mail'' and by replacing ``Standard Mail (A)'' with ``Standard Mail''; 
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''; 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 replacing ``Standard Mail'' with ``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''; 
replace indicia example ``SPECIAL STANDARD MAIL'' with ``MEDIA MAIL''; 
no other changes to exhibit.]
* * * * *
    [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

    [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.]

[[Page 78610]]

    [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''; 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 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 Parcels in Mailing Eligible

    If 100% of the 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 postage under 
the applicable standards.

4.2  Less than 100% Eligibility

    If less than 100% of the parcels in the mailing are eligible for 
the machinable parcel barcoded discount, then the following 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. Payment with permit imprint 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 on which bulk insurance is requested must have postage and 
fees paid with permit imprint under a manifest mailing system (P910).

5.2  Electronic Option Delivery Confirmation

    If electronic option Delivery Confirmation is requested for all of 
the pieces in the mailing and the mailing consists of pieces of 
identical weight, then postage may be paid with metered postage or 
permit imprint under the applicable standards in 2.0. If electronic 
option Delivery Confirmation 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 postage must be 
paid with permit imprint under a manifest mailing system (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 of the 
pieces in the mailing and the mailing consists of pieces of identical 
weight, then postage may be paid with metered postage or permit imprint 
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, then either the exact metered 
postage must be affixed to each piece or postage must be paid with 
permit imprint under a manifest mailing system (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. 
Permit imprint may be used for mailings that contain nonidentical-
weight pieces only under P910, P920, or P930. Permit imprint 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 and/or 
destination entry rate Package Services mailing, and any mailing paid 
with permit imprint. 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.]
* * * * *

[[Page 78611]]

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''; no other changes to text.]
    [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''; no other changes to text.]
* * * * *
4.0  POSTAGE
* * * * *
    [Amend 4.2 by replacing ``Standard Mail (A)'' with ``Standard 
Mail''; no other changes to text.]
    [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''; no other changes to text.]
* * * * *
    [Amend the heading of 5.0 by replacing ``Standard Mail (A)'' with 
``Standard Mail''; no other changes to text.]
* * * * *
    [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''; no other changes to text.]
* * * * *
    [Amend heading of P960 by removing ``(A)'' to read as follows:]

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

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

BILLING CODE 7710-12-P

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BILLING CODE 7710-12-C

[[Page 78647]]

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 
to which 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''; and by providing for use of Delivery Confirmation and 
Signature Service with enclosed mail to read as follows:]
    For a Priority Mail drop shipment, enclosed First-Class Mail may be 
sent certified or special handing; enclosed Standard Mail may be sent 
with electronic option Delivery Confirmation; enclosed Package Services 
mail may be sent special handling, electronic option Delivery 
Confirmation, or electronic option Signature Confirmation. Enclosed 
mail may not be sent registered, insured, or collect on delivery (COD). 
No special services may be added to the Priority Mail segment of the 
drop shipment.

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 2.0 by changing ``Standard Mail'' to ``Package Services'' 
and by providing for use of electronic option Delivery Confirmation and 
electronic option Signature Service with enclosed mail to read as 
follows:]
2.0  EXPRESS MAIL DROP SHIPMENT
    Mail enclosed in an Express Mail drop shipment may be sent 
certified (if First-Class Mail) or special handling. For an Express 
Mail drop shipment, enclosed First-Class Mail may be sent certified or, 
if Priority Mail, with electronic option Delivery Confirmation service; 
enclosed Standard Mail parcels may be sent with electronic option 
Delivery Confirmation service; enclosed Package Services mail may be 
sent with special handling, electronic option Delivery Confirmation 
service, or electronic option Signature Confirmation service. The 
enclosed mail may not be sent collect on delivery (COD), insured, or 
registered. For Express Mail indemnity coverage, the content of each 
Express Mail pouch is considered one mailpiece.

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

1.0  BASIC INFORMATION
* * * * *

1.5  Additional Services

    [Amend 1.5 by clarifying the additional services that can be used 
with registered mail to read as follows:]
    Purchasing registered mail service allows customers to then 
purchase restricted delivery service or a return receipt. The following 
additional services may be combined with registered mail if the 
applicable standards for the services are met and the additional 
service fees are paid:
    a. COD.
    b. Delivery Confirmation.
    c. Signature Confirmation.
* * * * *

S912  Certified Mail

1.0  BASIC INFORMATION
* * * * *

1.4  Additional Services

    [Revise 1.4 to read as follows:]
    Purchasing certified mail service allows customers to then purchase 
restricted delivery service or a return receipt.
    [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 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 (including Priority Mail), if it contains 
matter that may be mailed as 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:]
    Insuring an item for more than $50 allows customers to then 
purchase restricted delivery service or a return receipt. The following 
additional 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 service (PAL).
    d. Return receipt for merchandise (for items insured for up to 
$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 delivery record after mailing under S915.
* * * * *
2.0  MAILING
* * * * *

[[Page 78648]]

    [Effective November 30, 2000, the Postal Service revised DMM 
S913.2.0 to include new information about integrated barcodes. See 
Postal Bulletin 22038 (11-30-00). The revisions below reflect those 
changes.]

2.5  Integrated Barcodes

    [Amend 2.5 to include information about Signature Confirmation to 
read as follows:]
    There are two other options available for mailers who print their 
own labels:
    a. An integrated barcode may be used by Delivery Confirmation 
electronic option mailers who wish to combine insurance with Delivery 
Confirmation or insurance with Signature Confirmation into a single 
barcode on the shipping label to eliminate multiple labels and barcodes 
on packages. Additional information on the integrated barcode solution 
can be found in Publication 91, Delivery Confirmation Technical Guide, 
November 2000 edition (which includes the Addendum on Signature 
Confirmation and integrated barcodes.)
    b. Mailers have a third option for privately printed labels with 
insurance. The privately printed form must meet the specifications 
described in Publication 91 (see Exhibit 2.4). Applicable certification 
procedures must be followed, also as specified in Publication 91.
* * * * *
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 a certificate for a single piece of First-
Class Mail (including Priority Mail) or Package Services. Privately 
printed forms also may be used.
    [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 
on single pieces if the applicable standards for the services are met 
and the additional service fees are paid:
    a. Parcel airlift service (PAL).
    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. It is 
available also for First-Class Mail (including Priority Mail) and 
Package Services when purchased at the time of mailing with one of the 
following services:
    a. Certified mail.
    b. COD.
    c. Insurance (for more than $50).
    d. Registered mail.
* * * * *
    [Add new 1.7 to show additional services to read as follows:]

1.7  Additional Services

    If return receipt service has already been purchased with one of 
the services listed in 1.2, then one or more of the following special 
services may be combined with those services at the time of mailing if 
the applicable standards for the services are met and the additional 
service fees are paid:
    a. Delivery Confirmation (Priority Mail and Package Services only).
    b. Parcel airlift service (PAL) (Priority Mail and Package Services 
only).
    c. Restricted delivery.
    d. Signature Confirmation (Priority Mail and Package Services 
only).
    e. 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 for Express 
Mail, certified mail, registered mail, COD mail, and mail insured for 
more than $50. 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. 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 U.S. 
Virgin Islands), the form should be sent to the office of delivery.
    b. For items delivered prior to activation of the signature capture 
process (August 1, 2000), send the form to the office of delivery.
    c. For items delivered on or after activation of the signature 
capture process (August 1, 2000), 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.
* * * * *

[[Page 78649]]

4.0  REQUESTS FOR DELIVERY INFORMATION
* * * * *
    [Amend 4.2 to remove references to the ``actual delivery record'' 
to read as follows:]

4.2 Form 3811-A

    The mailer must complete a Form 3811-A at any post office. The 
applicable fee is waived if the mailer can produce a receipt showing 
the applicable return receipt fee was paid.
* * * * *

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 
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. Parcel airlift service (PAL).
    d. Special handling.
* * * * *
    [Add new 2.7 to specify how a mailer applies for a delivery 
record:]

2.7  Receipt Not Received

    A mailer who does not receive return receipt for merchandise 
service for which the mailer has paid may request information from the 
delivery record, at no additional charge, by 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.

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).
* * * * *
3.0  BARCODES
* * * * *
    [Effective November 30, 2000, the Postal Service revised DMM 
S918.3.4 and S918.4.0c to include new information about integrated 
barcodes. See Postal Bulletin 22038 (11-30-00). The revisions below 
reflect those changes.]

3.4  Integrated Barcodes

    An integrated barcode may be used by mailers printing their own 
barcodes and using the electronic service option. Mailers may combine 
Delivery Confirmation and insurance services into a single barcode on 
the shipping label and eliminate multiple labels and barcodes on 
packages. Mailers must still meet existing specifications in 3.1 and 
3.2. Minor modifications allow users to request multiple special 
services on Priority Mail and Package Services. Two required changes 
are:
    a. Change the text above the barcode to identify the service 
requested. Exhibits are included in Publication 91, Delivery 
Confirmation Technical Guide, November 2000 edition (which includes the 
Addendum on Signature Confirmation and integrated barcode).
    b. Change the service type code in the barcode to identify the 
class of mail and/or type of special services combined with Delivery 
Confirmation. Additional information on the Service Type Code Matrix 
can be found in the Publication 91, Delivery Confirmation Technical 
Guide, November 2000 edition.
4.0  ELECTRONIC FILE TRANSMISSION
* * * * *
    c. Mailers using the electronic option are required to include 
additional fields in the electronic file when planning to use the 
integrated barcode. For more information consult Publication 91, 
Delivery Confirmation Technical Guide, November 2000 edition.
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 and, if delivery was 
attempted but not successful, the date and time of the delivery 
attempt. A delivery record, including the recipient's signature, is 
maintained by the USPS and is

[[Page 78650]]

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  Ineligible Matter

    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 of Signature Confirmation pieces that are entered for mailing, and 
retrieve delivery status information electronically. No mailing receipt 
is provided. Mailers can access delivery information over the Internet 
at www.usps.com or through their electronic file. Requests for delivery 
records can be made over the Internet 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

    The following special services may be combined with Signature 
Confirmation if the applicable standards for the services are met and 
the additional service fees are paid:
    a. Collect on delivery (COD).
    b. Insurance.
    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 who waive the signature requirement must accept the 
delivery employee's signature and date of delivery as proof of 
delivery. Customers who waive the signature requirement will be 
provided only the date of delivery in the delivery record, unless a 
special request for the delivery employee's signature is made. For 
retail labels, detach both parts of the gummed label and attach to the 
mailpiece. Waiver of signature is not available when Signature 
Confirmation is combined with other special services.
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 
(November 2000 edition):
    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 153 must be placed 
either 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 represent 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 represent a unique PIC:
    a. For UCC/EAN 128, each barcode must represent a unique PIC and be 
made up of five fields totaling from 16 to 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 
barcode as a postal barcode.
    (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): variable from 2 to 8 numbers.

[[Page 78651]]

    (5) Modulus 10 Check digit: one character. See Publication 91 for 
use of the concatenated barcode for routing purposes.
    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 with a fixed sequential number of 8 digits. 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 \1/8\-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 are not required to 
obtain any additional certification to use Signature Confirmation.

3.4  Integrated Barcodes

    An integrated barcode may be used by mailers printing their own 
barcodes and using the electronic service option. Mailers may combine 
Signature Confirmation and insurance into a single barcode on the 
shipping label and eliminate multiple labels and barcodes on packages. 
Mailers must still meet existing specifications in 3.1 and 3.2. Minor 
modifications allow users to request multiple special services on 
Priority Mail and Package Services. Two required changes are:
    a. Change the text above the barcode to identify the service 
requested. Exhibits are included in Publication 91, Delivery 
Confirmation Technical Guide, November 2000 edition (which includes the 
Addendum on Signature Confirmation and integrated barcode).
    b. Change the service type code in the barcode to identify the 
class of mail and/or type of special services combined with Signature 
Confirmation. Additional information on the Service Type Code Matrix 
can be found in the Publication 91, Delivery Confirmation Technical 
Guide, November 2000 edition.
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, Delivery Confirmation Certification.
    b. Mailers using the electronic option will be required to transmit 
a file with a unique record for each article mailed. 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 obtain any additional certification for Signature 
Confirmation service use.
    d. Mailers using the electronic option are required to include 
additional fields in the electronic file when planning to use the 
integrated barcode. For more information, consult Publication 91.
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 must submit a completed 
Form 3152 with each mailing. Each Form 3152 must contain the electronic 
file number or barcode equivalent, date of mailing, and, if available, 
the total number of pieces by class of mail. The barcode format must 
comply with standards in Publication 91.

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.]
* * * * *

[[Page 78652]]

    [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:]
    Purchasing COD service allows customers to then purchase restricted 
delivery service or a return receipt. The following additional 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. Registered mail.
    c. Signature Confirmation.
    d. Special handling.
* * * * *
    [Effective November 5, 2000, the Postal Service completely rewrote 
DMM standards for business reply mail (see Postal Bulletin 22035 (10-
19-00), available via www.usps.com). This rewrite was done for clarity 
and consistency. Therefore, standards for business reply mail in this 
final rule have been reorganized to reflect the new structure of DMM 
units E150, P014, R900, and S922. There have been no substantive 
changes to these standards since publication in the proposed rule.]

S922  Business Reply Mail (BRM)

* * * * *
3.0  POSTAGE, PER PIECE CHARGES, AND ACCOUNTING FEES
* * * * *

3.3  Annual Accounting Fee and Advance Deposit Account

    [Amend 3.3 to show that BRM no longer requires a unique advance 
deposit account:]
    A permit holder may choose to pay an annual accounting fee and 
establish an advance deposit account, which qualifies returned BRM 
pieces for the high-volume per piece charge. The accounting fee must be 
paid once each 12-month period at each post office where a permit 
holder holds an advance deposit account. Payment of the accounting fee 
is based on the anniversary date of the initial payment. The fee may be 
paid in advance only for the next 12-month period and only during the 
last 60 days of the current 12-month period. The fee charged is that 
which is in effect on the date of payment. An advance deposit account 
can be used for BRM under these conditions:
* * * * *
7.0  ADDITIONAL STANDARDS FOR QUALIFIED BUSINESS REPLY MAIL (QBRM)
* * * * *
    [Add new 7.7 and 7.8 for the quarterly fee to read as follows:]

7.7  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 high-volume QBRM per piece charge listed in 
R900.4.4). 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.

7.8  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 
high-volume QBRM per piece charge from the date of payment through the 
end of the quarterly period. The fee paid is that which is in effect on 
the date of payment.
* * * * *

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 to the permit holder by the permit holder's customers via a 
special label produced by the permit holder.
* * * * *

1.3  Payment Guarantee

    [Revise 1.3 to 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:]

[[Page 78653]]

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 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 60 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 60 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.
    a. For each withdrawal, only one statement is provided for each 
annual accounting fee paid.
    b. The permit holder must pay an annual accounting fee for each 
separate statement (accounting) requested. If only one annual account 
fee is paid, then the permit holder receives only one statement.
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 5.6c 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 returned via 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

[[Page 78654]]

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 60 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 BPRS is not required; the 
annual accounting fee is charged if BPRS 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 BPRS 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 SERVICE (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 111 to reflect these changes 
will be published.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-31357 Filed 12-14-00; 8:45 am]
BILLING CODE 7710-12-P