[Federal Register Volume 66, Number 101 (Thursday, May 24, 2001)]
[Rules and Regulations]
[Pages 28659-28666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13174]


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POSTAL SERVICE

39 CFR Part 111


Domestic Mail Manual Changes for First-Class Mail, Standard Mail, 
and Bound Printed Matter Flats

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule amends the Domestic Mail Manual (DMM) to 
implement the following mail preparation standards: For First-Class 
Mail, packages of Presorted rate flats and packages of automation rate 
flats that are part of the same mailing job and reported on the same 
postage statement must be co-trayed according to the standards in DMM 
M910; For Standard Mail, packages of Presorted rate flats and packages 
of automation rate flats that are part of the same mailing job and 
reported on the same postage statement must be co-sacked according to 
the standards in DMM M910; For Standard Mail, packages of Enhanced 
Carrier Route flats and 5-digit packages of Presorted flats must be 
sacked or palletized using the labeling list L001 scheme sort. This 
includes the scheme sorts included in the optional preparation methods 
in DMM M920, M930, and M940; and For Bound Printed Matter, packages of 
Carrier Route flats and 5-digit packages of Presorted flats must be 
sacked or palletized using the labeling list L001 scheme sort.

EFFECTIVE DATE: September 1, 2001.

FOR FURTHER INFORMATION CONTACT: Anne Emmerth, 703-292-3641, 
[email protected].

SUPPLEMENTARY INFORMATION: On March 16, 2001 (66 FR 15206), the Postal 
Service published in the Federal Register a proposed rule seeking 
comments on proposed changes to the Domestic Mail Manual (DMM) that 
would revise mail preparation standards for flats. The original comment 
period ended on April 13, 2001; as of that date, no comments were 
received. On April 17, 2001 (65 FR 19740), the Postal Service re-opened 
the comment period through May 4 to allow customers more time to 
comment on the proposed changes. The Postal Service received one 
comment.
    Generally, the changes are intended to align mail preparation more 
closely with the way that the Postal Service transports and processes 
flat-size mail. The co-traying requirements for First-Class Mail flats 
and the co-sacking requirements for Standard Mail flats will result in 
fewer less-than-full trays and sacks and an overall reduction in the 
number of trays and sacks prepared by mailers and processed by the 
Postal Service. For Presorted rate Standard Mail, with sack-based 
rates, this requirement also will result in lower postage rates for 
some mail that will move to a finer sack presort level. Requiring the 
use of labeling list L001 for sacked carrier route Standard Mail and 
Bound Printed Matter flats also will result in fewer sacks prepared by 
mailers. For mail on pallets, use of L001 will create more 5-digit 
level pallets, resulting in fewer package handlings for the Postal 
Service and better service for mailers.
    The changes are outlined below by class of mail; the DMM language 
follows at the end of this final rule.
    In response to the proposed rule, the Postal Service received one 
comment from a large commercial printer. The commenter expressed 
support for the mail preparation changes in the proposed rule and 
believes that these changes will improve service and handling of 5-
digit containers and reduce the number of sacks. The commenter 
suggested that the proposed September 1 implementation date be moved to 
January 2002. The commenter explained that in September the mailing 
industry will be in the midst of preparing its heaviest volumes for the 
fall mailing season, which is not a convenient time to implement new 
and complex preparation standards.
    The Postal Service appreciates receiving supportive comments and 
thanks the commenter for responding to the proposed rule. The Postal 
Service recognizes that mail preparation changes can be disruptive to 
mailers who must adjust presort software systems and internal 
operations. The standards in this final rule will result in more 
efficient and cost-effective mail handling for the Postal Service and 
better service and postage savings for mailers. Therefore, implementing 
these changes on September 1 will allow the Postal Service and its 
customers to capture savings and efficiencies during the time of 
heaviest mail volume.
    Based on the comment received and discussions with other mailers 
and presort software vendors regarding these changes, the Postal 
Service will implement the standards in this final rule on September 1, 
2001. This will allow time for programming, testing, and installation 
of new presort software, and time for mailers to adjust their internal 
processes in advance of the fall mailing season.
    The changes implemented in this final rule are as follows:

1. First-Class Mail

Required Co-Traying

    Since January 7, 2001, mailers have had the option to use M910 to 
co-tray packages of Presorted rate flats and automation rate flats that 
are part of the same mailing job (see M130.1.6 and M820.1.9). This 
final rule changes that option into a requirement. Therefore, effective 
September 1, 2001, any First-Class Mail mailing job that contains 
packages of Presorted rate flats and packages of automation rate flats 
and is

[[Page 28660]]

reported on a single postage statement must be co-trayed using 
M910.1.0.

2. Standard Mail

a. Scheme Sort

    Currently, Standard Mail Enhanced Carrier Route flats are sorted to 
two required sack levels and one optional sort level (required carrier 
route, optional 5-digit scheme carrier routes using labeling list L001, 
and required 5-digit carrier routes) (see M620.4.0). This final rule 
changes the optional sort level into a required sort level. Therefore, 
effective September 1, 2001, all Enhanced Carrier Route Standard Mail 
flats must be sorted to all three required sack levels (carrier route, 
5-digit scheme carrier routes, and 5-digit carrier routes).
    Current M620.4.0 contains sack preparation requirements for 
Standard Mail Enhanced Carrier Route flats and irregular parcels. In 
order to apply the labeling list L001 scheme sort only to flats, the 
sacking requirements for flats have been separated into a different 
section. Therefore, the sack preparation requirements for irregular 
parcels are included in this final rule only to show renumbering and 
reorganization. There are no mail preparation changes for Standard Mail 
Enhanced Carrier Route irregular parcels.
    Currently, mailers have the option to use the L001 scheme sort for 
packages of Standard Mail Enhanced Carrier Route flats and 5-digit 
packages of Presorted flats on pallets (see M045.3.2). This final rule 
changes the two optional sort levels using labeling list L001 (5-digit 
scheme carrier routes and 5-digit scheme) into required sort levels. 
Therefore, effective September 1, 2001, packages of carrier route rate 
flats on pallets must be sorted to 5-digit scheme carrier routes 
pallets as the first sort level, and 5-digit packages of Presorted 
flats must be sorted to 5-digit scheme pallets as the first sort level.
    Under the advanced preparation options in M920, M930, and M940, 
mailers currently have the option of sorting Standard Mail packages 
with or without using the L001 scheme sort. This final rule eliminates 
the ``non-L001'' sort (current M920.2.4, M920.2.6, M930.2.4, and 
M940.2.4). Therefore, effective September 1, 2001, mailers sorting 
Standard Mail flats under M920, M930, or M940 will be required to use 
the L001 scheme sort.
    These changes apply to regular and nonprofit Standard Mail flats.

b. Required Co-Sacking

    Since January 7, 2001, mailers have had the option to use M910 to 
co-sack packages of Presorted rate flats and packages of automation 
rate flats that are part of the same mailing job (see M610.1.5 and 
M820.1.9). This final rule changes that option into a requirement. 
Therefore, effective September 1, 2001, any Standard Mail mailing job 
that contains packages of Presorted rate flats and packages of 
automation rate flats and is reported on a single postage statement 
must be co-sacked using M910.3.0.
    These changes apply to regular and nonprofit Standard Mail flats.

3. Bound Printed Matter

Scheme Sort

    Currently, Bound Printed Matter Carrier Route flats are sorted to 
two required sack levels and one optional sort level (required carrier 
route, optional 5-digit scheme carrier routes using labeling list L001, 
and required 5-digit carrier routes) (see M723.2.3). This final rule 
changes the optional sort level into a required sort level. Therefore, 
effective September 1, 2001, all Bound Printed Matter carrier route 
flats must be sorted to all three required sack levels (carrier route, 
5-digit scheme carrier routes, and 5-digit carrier routes).
    Currently, mailers have the option to use the L001 scheme sort for 
packages of Bound Printed Matter carrier route flats and 5-digit 
packages of Presorted flats on pallets (M045.3.3). This final rule 
changes the two optional sort levels (5-digit scheme carrier routes and 
5-digit scheme) into required sort levels. Therefore, effective 
September 1, 2001, packages of carrier route rate flats on pallets must 
be sorted to 5-digit scheme carrier routes pallets as the first sort 
level, and 5-digit packages of Presorted flats must be sorted to 5-
digit scheme pallets as the first sort level.
    There are no other mail preparation changes for Bound Printed 
Matter.

PAVE Certification

    For mailings that are co-trayed or co-sacked under M910, 
documentation produced by PAVE-certified software or standardized 
documentation under P012 must be submitted with each mailing job. Use 
of PAVE-certified software is required for the advanced ``merging'' 
preparation options in M920, M930, and M940, which include the L001 
scheme sort.

Implementation Date

    The implementation date for these changes is September 1, 2001. 
This date allows presort software vendors time to update and distribute 
software to their customers and includes time for installation and 
testing of the software.

List of Subjects in 39 CFR Part 111

    Postal Service.

    For the reasons mentioned above, the Postal Service hereby adopts 
the following amendments to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR Part 111.

PART 111--[AMENDED]

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

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


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

E  ELIGIBILITY

* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *
8.0  PREPARATION
    Each Standard Mail mailing is subject to these general standards:
* * * * *
    [Amend 8.0c to read as follows:]
    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 that are reported on the same 
postage statement must be co-sacked under M910. Separate automation, 
Presorted, and Enhanced Carrier Route mailings of flats may be co-
containerized under M920, M930, or M940.
* * * * *

E700  Package Services

* * * * *

E750.  Destination Entry

* * * * *

E752.  Bound Printed Matter

* * * * *
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES
* * * * *

3.2  Presorted Flats

    [Amend 3.2 by removing the word ``optional'' to show that the 
scheme sort is required.]
    Presorted flats in sacks for the 5-digit, 3-digit, and SCF sort 
levels or on pallets at the 5-digit scheme, 5-digit, 3-digit, SCF, and 
ASF sort levels may claim

[[Page 28661]]

DSCF rates. Mail must be entered at the appropriate facility under 3.1.
* * * * *

3.5  Carrier Route Flats

    [Amend 3.5 by removing the word ``optional'' to show that the 
scheme sort is required.]
    Carrier route flats in sacks at all sort levels or on pallets at 5-
digit scheme carrier routes, 5-digit carrier routes, 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 UNITS (DDU) RATES
* * * * *

4.2  Presorted Flats

    [Amend 4.2 by removing the word ``optional'' to show that the 
scheme sort is required.]
    Presorted flats that weigh more than 1 pound in 5-digit sacks, on 
5-digit scheme and 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.
* * * * *

4.5  Carrier Route Flats

    [Amend 4.5 by removing the word ``optional'' to show that the 
scheme sort is required.]
    Carrier Route flats in sacks, on 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.
* * * * *

M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.3  Preparation Instructions

    For the purposes of preparing mail:
* * * * *
    [Amend 1.3j to show that the L001 scheme sort is required for 
Standard Mail Enhanced Carrier Route flats and Bound Printed Matter 
Carrier Route flats.]
    j. A 5-digit/scheme carrier routes sort for carrier route rate 
Periodicals flats and irregular parcels (nonletters), 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 to be sorted to 5-digit scheme carrier routes and are 
labeled accordingly. The 5-digit/scheme carrier routes sort is required 
for carrier route packages of flat-size and irregular parcel 
Periodicals, for Enhanced Carrier Route Standard Mail flats, and for 
Carrier Route Bound Printed Matter flats. Preparation of 5-digit scheme 
carrier routes sacks or pallets must be done for all 5-digit scheme 
destinations.
    [Amend 1.3k to show that the scheme sort is required for Standard 
Mail flats and Bound Printed Matter flats.]
    k. A 5-digit/scheme sort for Periodicals flats and irregular 
parcels (nonletters), Standard Mail flats, and Presorted Bound Printed 
Matter flats prepared as packages on pallets yields 5-digit scheme 
pallets containing automation rate and Presorted rate 5-digit packages 
for those 5-digit ZIP Codes listed in L001 and yields 5-digit pallets 
containing automation rate and Presorted rate 5-digit packages for 
other areas (automation rate packages are not applicable to Bound 
Printed Matter). 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 to be 
sorted to the 5-digit scheme and are labeled accordingly. The 5-digit/
scheme sort is required for flat-size and irregular parcel-size 
Periodicals, for Standard Mail flats, and for Presorted Bound Printed 
Matter flats. The 5-digit/scheme sort 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. Preparation of 5-digit 
scheme pallets must be done for all 5-digit scheme destinations.
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION
* * * * *

5.2  Required Preparation

    These standards apply to:
    [Amend 5.2a to show that the L001 scheme sort is required for 
Standard Mail flats.]
    a. Periodicals, Standard Mail, and Package Services (except for 
Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). 
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; 500 pounds of parcels; or six layers of Periodicals 
or Standard Mail letter trays. For packages of Periodicals flats and 
irregular parcels and packages of Standard Mail flats on pallets that 
are prepared under the standards for package reallocation to protect 
the SCF pallet (M045.4.0), not all mail for a 5-digit scheme carrier 
routes, 5-digit scheme, 5-digit carrier routes, or 5-digit pallet or 
for a merged 5-digit scheme, merged 5-digit, 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 (M045.5.0), not all mail for a 
required ASF pallet must 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.
* * * * *

5.6  Mail on Pallets

    These standards apply to mail on pallets:
* * * * *
    [Amend 5.6g to read as follows:]
    g. For Periodicals flats and irregulars, Standard Mail flats, and 
Bound Printed Matter flats, packages of carrier route rate mail must be 
prepared on separate 5-digit pallets from automation and

[[Page 28662]]

Presorted rate mail. Exception: For Periodicals and Standard Mail, 
under the standards in M920, M930, and M940, carrier route rate, 
automation rate, and Presorted rate packages can be combined onto the 
same merged 5-digit scheme pallet and merged 5-digit pallet for 
applicable 5-digit ZIP Codes.
    [Delete 5.6h.]
* * * * *

M045  Palletized Mailings

* * * * *
3.0  PALLET PRESORT AND LABELING
* * * * *

3.2  Standard Mail Packages, Sacks, or Trays on Pallets

    [Amend the introduction to 3.2 and 3.2a through 3.2d to show that 
the scheme sort using L001 is required for packages of Standard Mail 
flats.]
    Mailers must prepare pallets in the sequence listed below, except 
that mailings of sacks on pallets, trays on pallets, and irregular 
parcels must be prepared beginning with 3.2c (because L001 scheme sort 
is not permitted). Pallets must be labeled according to the Line 1 and 
Line 2 information listed below and under M031. At the mailer's option, 
Standard Mail flats prepared as packages on pallets may be palletized 
in accordance with the advanced presort options in M920, M930, or M940.
    a. 5-Digit Scheme Carrier Routes. Required for packages of flats on 
pallets. Not permitted for sacks or trays on pallets, or for irregular 
parcels on pallets except under M011. May contain only carrier route 
rate packages for the same 5-digit scheme under L001. Scheme sort 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 3.2c.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``STD FLTS''; followed by ``CARRIER ROUTES'' or ``CR-
RTS''; followed by ``SCHEME'' or ``SCH.''
    b. 5-Digit Scheme. Required for packages of flats on pallets. Not 
permitted for sacks or trays on pallets, or for irregular parcels on 
pallets except under M011. May contain only automation rate and/or 
Presorted rate packages for the same 5-digit scheme under L001. Scheme 
sort 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 3.2d.
    (1) Line 1: use L001, Column B.
    (2) Line 2: ``STD FLTS 5D''; followed by ``BARCODED'' or ``BC'' if 
the pallet contains automation rate mail; followed by ``NONBARCODED'' 
or ``NBC'' if the pallet contains Presorted rate mail; followed by 
``SCHEME'' or ``SCH.''
    c. 5-Digit Carrier Routes. Required for sacks and packages; 
optional for trays. May contain only carrier route rate mail for the 
same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS'' or ``STD IRREG'' or, for trays on pallets 
only, ``STD LTRS'' as applicable; followed by ``CARRIER ROUTES'' or 
``CR-RTS.''
    d. 5-Digit. Required for sacks and packages; optional for trays. 
May contain only automation rate and/or Presorted rate mail for the 
same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``STD FLTS 5D'' or ``STD IRREG 5D'' or, for trays on 
pallets only, ``STD LTRS 5D'' as applicable; followed by ``BARCODED'' 
or ``BC'' if the pallet contains automation rate mail; followed by 
``NONBARCODED'' or ``NBC'' if the pallet contains Presorted rate mail.
* * * * *

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

    [Amend the introduction to 3.3 and 3.3a through 3.3d to show that 
the scheme sort using L001 is required for packages of Bound Printed 
Matter flats.]
    Mailers must prepare pallets in the sequence listed below, except 
that mailings of sacks on pallets must be prepared beginning with 3.3c 
(because L001 scheme sort is not permitted). Pallets must be labeled 
according to the Line 1 and Line 2 information listed below and under 
M031.
    a. 5-Digit Scheme Carrier Routes. Required for packages of flats on 
pallets. Not permitted for sacks on pallets. May contain only Carrier 
Route rate packages for the same 5-digit scheme under L001. Scheme sort 
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. Required for packages of flats on pallets. Not 
permitted for sacks on pallets. May contain only Presorted rate 
packages for the same 5-digit scheme under L001. Scheme sort 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. May 
contain only Carrier Route rate mail for the same 5-digit ZIP Code.
    (1) Line 1: use city, state abbreviation, and 5-digit ZIP Code 
destination (see M031 for military mail).
    (2) Line 2: ``PSVC FLTS'' followed by ``CARRIER ROUTES'' or ``CR-
RTS.''
    d. 5-Digit. Required for sacks and packages. 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.''
* * * * *
4.0  PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS 
AND IRREGULAR PARCELS AND STANDARD MAIL FLATS ON PALLETS
    [Amend 4.1 to delete references to optional sort levels.]

4.1  Basic Standards

    Package reallocation to protect the SCF pallet is an optional 
preparation method (if performed, package reallocation must be done for 
the complete mailing job); only PAVE-certified presort software may be 
used to create pallets under the standards in 4.2 through 4.4. The 
software will determine if mail for an SCF service area would fall 
beyond the SCF level if all merged 5-digit scheme, 5-digit scheme 
carrier routes, 5-digit scheme, merged 5-digit, 5-digit carrier routes, 
5-digit, or 3-digit pallets are prepared. Reallocation is performed 
only when there is mail for the SCF service area that would fall beyond 
the SCF pallet level (e.g., to an ADC or BMC pallet). The amount of 
mail required to bring the mail that would fall beyond the SCF level 
back to an SCF level is the minimum volume that will be reallocated, 
where possible.
* * * * *

M100  First-Class Mail (Nonautomation)

* * * * *

M130  Presorted First-Class Mail

1.0  BASIC STANDARDS
* * * * *

1.6  Co-Traying With Automation Rate Mail

    Except for automation rate mailings prepared under the tray-based 
preparation option in M820.3.0, if a

[[Page 28663]]

single mailing job contains an automation rate mailing and a Presorted 
rate mailing and both mailings are reported on the same postage 
statement, then the mailing job must be presorted under the co-traying 
standards in M910.
* * * * *

M600  Standard Mail (Nonautomation)

M610  Presorted Standard Mail

1.0  BASIC STANDARDS

1.1  All Mailings

    In addition to the preparation standards in 2.0 through 5.0, the 
following basic standards must be met for all Presorted rate mailings:
* * * * *
    [Amend 1.1f to change the reference from 1.3 to 1.4.]
    f. Subject to 1.4, letter-size pieces must be prepared in trays 
and, unless palletized, flat-size pieces must be prepared in sacks.
* * * * *
    [Renumber current 1.2 through 1.6 as 1.3 through 1.7, respectively. 
Add new 1.2 to read as follows:]

1.2  Additional Standards for Sacked Flats Mailing Jobs Containing 
More Than One Mailing

    The following standards apply:
    a. If the mailing job contains a carrier route mailing, an 
automation rate mailing, and a Presorted rate mailing, then it must be 
prepared under one of the following options: 1) the carrier route 
mailing must be prepared under E630 and M620 and the automation rate 
and Presorted rate mailings must be prepared under M910; or 2) all 
three mailings in the mailing job must be prepared under M920.
    b. If the mailing job contains an automation rate mailing and a 
Presorted rate mailing, then it must be prepared under the co-sacking 
standards in M910.
    c. If the mailing job contains a carrier route mailing and a 
Presorted rate mailing, then it must be separately sacked under M610 
and M620 or prepared using the merged sacking option under M920.
    d. If the mailing job contains a carrier route mailing and an 
automation rate mailing, then it must be separately sacked under M620 
and M820 or prepared using the merged sacking option under M920.
* * * * *
    [Delete renumbered 1.6 (former 1.5), Co-Sacking With Automation 
Rate Mail, and renumber 1.7 as 1.6. Amend 1.6 to read as follows:]

1.6  Merged Containerization of Flat-Size Carrier Route, Automation 
Rate, and Presorted Rate Mail

    Under the optional preparation method in M920, 5-digit packages of 
Presorted flats must be co-sacked with packages of carrier route flats 
prepared under M620 and with 5-digit packages of automation flats 
prepared under M820 in merged 5-digit scheme sacks and merged 5-digit 
sacks. Under the optional preparation methods in M920, M930, or M940, 
5-digit packages of Presorted flats must be copalletized with packages 
of carrier route rate flats prepared under M620 and with 5-digit 
packages of automation rate flats prepared under M820 on merged 5-digit 
scheme pallets and merged 5-digit pallets. See 1.2a for information on 
when preparation under M920 may be required.
* * * * *

M620  Enhanced Carrier Route Standard Mail

1.0  BASIC STANDARDS
* * * * *
    [Amend 1.6 to read as follows:]

1.6  Merged Containerization of Flat-Size Carrier Route, Automation 
Rate, and Presorted Rate Mail

    Under the optional preparation method in M920, packages of carrier 
route rate flats must be co-sacked with 5-digit packages of Presorted 
rate flats prepared under M610 and with 5-digit packages of automation 
rate flats prepared under M820 in merged 5-digit scheme sacks and 
merged 5-digit sacks. Under the optional preparation methods in M920, 
M930, or M940, packages of carrier route rate flats must be 
copalletized with 5-digit packages of Presorted flats prepared under 
M610 and with 5-digit packages of automation rate flats prepared under 
M820 on merged 5-digit scheme pallets and merged 5-digit pallets.
* * * * *

    Note: The current DMM combines the preparation standards for 
flats and irregulars into one section. Because the L001 scheme sort 
will be required for flats but not for irregulars, the current 
single section has been split into two sections: one for flats and 
one for irregulars. The standards for irregulars are included in 
this final rule because they have been renumbered and reorganized; 
however, there are no changes to the mail preparation for irregular 
parcels.


    [Amend 4.0 to add the required L001 scheme sort for flats to read 
as follows:]
4.0  SACK PREPARATION--FLATS

4.1  Required Sack Minimums

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:
    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum; those that weigh more must be 
prepared using the 15-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 125-piece 
or 15-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 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 4.1b (``BOTH'').

4.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. Carrier route: required (minimum of 125 pieces/15 pounds, 
smaller volume not permitted).
    (1) Line 1: use 5-digit ZIP Code destination of packages, preceded 
for military mail by the prefixes under M031.
    (2) Line 2: ``STD FLTS ECRWSS'' or ``STD FLTS ECRWSH'' or ``STD 
FLTS ECRLOT'' as applicable, followed by the route type and number.
    b. 5-digit scheme carrier routes: required (no minimum).
    (1) Line 1: use L001, column B.
    (2) Line 2: ``STD FLTS CR-RTS SCH.''
    c. 5-digit carrier routes: required (no minimum).
    (1) Line 1: use 5-digit ZIP Code destination of packages, preceded 
for military mail by the prefixes under M031.
    (2) Line 2: ``STD FLTS CR-RTS.''
    [Renumber current 5.0, Residual Pieces, as 6.0. Add new 5.0 to read 
as follows:]

[[Page 28664]]

5.0  SACK PREPARATION--IRREGULAR PARCELS

5.1  Required Sack Minimums

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 125 pieces or 15 pounds of pieces, 
whichever occurs first, subject to these conditions:
    a. For identical-weight pieces, a single-piece weight of 1.92 
ounces (0.12 pound) results in 125 pieces weighing 15 pounds. 
Identical-weight pieces weighing 1.92 ounces (0.12 pound) or less must 
be prepared using the 125-piece minimum; those that weigh more must be 
prepared using the 15-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 125-piece 
or 15-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 125-piece (``PCS'') or 15-pound (``WT'') threshold or 
the method in 5.1b (``BOTH'').

5.2  Sack Preparation

    Sack size, preparation sequence, and labeling:
    a. Carrier route: required (minimum of 125 pieces/15 pounds, 
smaller volume not permitted).
    (1) Line 1: use 5-digit ZIP Code destination of packages, preceded 
for military mail by the prefixes under M031.
    (2) Line 2: ``STD IRREG WSS'' or ``STD IRREG WSH'' or ``STD IRREG 
LOT'' as applicable, followed by the route type and number.
    b. 5-digit carrier routes: required (no minimum).
    (1) Line 1: use 5-digit ZIP Code destination of packages, preceded 
for military mail by the prefixes under M031.
    (2) Line 2: ``STD IRREG CR-RTS.''
* * * * *

M700  Package Services

* * * * *

M720  Bound Printed Matter

* * * * *

M723  Carrier Route Bound Printed Matter

* * * * *
2.0  REQUIRED PREPARATION--FLATS
* * * * *

2.3  Sack Preparation

    Preparation sequence and Line 1 sack labeling:
* * * * *
    [Amend 2.3b to show that the L001 scheme sort is required, not 
optional.]
    b. 5-digit scheme carrier routes: required (no minimum); for Line 
1, use L001, Column B.
* * * * *

M800  All Automation Mail

* * * * *

M820  Flats

1.0  BASIC STANDARDS
* * * * *
    [Amend 1.9 to show that co-traying is required for First-Class Mail 
and co-sacking is required for Standard Mail.]

1.9  Required Co-Traying and Co-Sacking With Presorted Rate Mail

    The following standards apply:
    a. First-Class Mail: Except for mailings prepared under the tray-
based preparation option in 3.0, if the mailing job contains an 
automation rate mailing and a Presorted rate mailing and both mailings 
are reported on the same postage statements, then the mailing job must 
be prepared under the co-traying standards in M910.
    b. Periodicals:
    (1) If the mailing job contains a carrier route mailing, an 
automation rate mailing, and a Presorted rate mailing, then it must be 
prepared under one of the following options: (1) the carrier route 
mailing must be prepared under E230 and M220 and the automation rate 
and Presorted rate mailings must be prepared under M910; or (2) all 
three mailings in the mailing job must be prepared under M920.
    (2) If the mailing job contains an automation rate mailing and a 
Presorted rate mailing, then it must be prepared under the co-sacking 
standards in M910.
    (3) If the mailing job contains a carrier route mailing and an 
automation rate mailing, then it must be separately sacked under M220 
and M820 or prepared using the merged sack option under M920.
    c. Standard Mail:
    (1) If the mailing job contains a carrier route mailing, an 
automation rate mailing, and a Presorted rate mailing, then it must be 
prepared under one of the following options: (1) the carrier route 
mailing must be prepared under E630 and M620 and the automation rate 
and Presorted rate mailings must be prepared under M910; or (2) all 
three mailings in the mailing job must be prepared under M920.
    (2) If the mailing job contains only an automation rate mailing and 
a Presorted rate mailing and both mailings are reported on the same 
postage statement, then the mailing job must be prepared under the co-
sacking standards in M910.
    (3) If the mailing job contains only a carrier route mailing and an 
automation rate mailing, then it must be separately sacked under M620 
and M820 or prepared using the merged sack option under M920.
    [Amend 1.10 to read as follows:]

1.10  Optional Merged Containerization With Presorted and Carrier 
Route Flats

    When the conditions and preparation standards in M920, M930, or 
M940 are met, 5-digit packages of Presorted, automation, and carrier 
route rate mail that are part of the same mailing job may be combined 
on merged 5-digit scheme sacks or pallets and merged 5-digit sacks or 
pallets. Packages co-sacked or copalletized must be part of the same 
mailing job and mail class.
* * * * *

M900  Advanced Preparation Options for Flats

M910  Co-Traying and Co-Sacking Packages of Automation and Presorted 
Mailings

1.0  FIRST-CLASS MAIL

1.1  Basic Standards

    [Amend the introduction of 1.1 and 1.1a to show that co-traying is 
required:]
    Packages of flats in an automation rate mailing prepared under 
M820.2.0 must be co-trayed with packages of flats in a Presorted rate 
mailing under the following conditions:
    a. The automation rate pieces and Presorted rate pieces are part of 
the same mailing job and are reported on the same postage statement.
* * * * *
3.0  STANDARD MAIL

3.1  Basic Standards

    [Amend the introduction of 3.1 and 3.1a to show that co-sacking is 
required:]
    Packages of flats in an automation rate mailing must be co-sacked 
with packages of flats in a Presorted rate mailing under the following 
conditions:
    a. The automation rate pieces and Presorted rate pieces are part of 
the same mailing job and are reported on the same postage statement.
* * * * *

[[Page 28665]]

M920  Merged Containerization of Packages Using the City State Product

* * * * *
2.0  STANDARD MAIL

2.1  Basic Standards

    Carrier route packages of flats in a carrier route rate mailing may 
be placed in the same sack or on the same pallet as 5-digit packages of 
flats from an automation rate mailing and 5-digit packages of flats 
from a Presorted rate mailing under the following conditions:
* * * * *
    [Amend 2.1f to delete references to the optional L001 scheme sort. 
This sort is now required.]
    f. If sortation under this section is performed, merged 5-digit 
sacks or pallets must be prepared for all 5-digit ZIP Codes with an 
``A'' or ``C'' indicator in the City State Product that permits such 
preparation when there is enough volume for the 5-digit ZIP Code to 
prepare that sack or pallet.
* * * * *
    [Amend 2.1k to delete references to the optional L001 scheme sort. 
This sort is now required.]
    k. The packages from each separate mailing must be sorted together 
into sacks (co-sacked) under 2.3 and 2.4 or on pallets (copalletized) 
under 2.5 using presort software that is PAVE-certified.
* * * * *
    [Delete 2.4 and 2.6. Renumber 2.5 (sacking with scheme sort) as 
2.4. Renumber 2.7 (palletizing with scheme sort) as 2.5. Amend the 
title and introduction of renumbered 2.4 to read as follows:]

2.4  Sack Preparation and Labeling

    Mailers must prepare sacks in the following manner and sequence. 
All carrier route packages must be placed in sacks under 2.4a through 
2.4e as described below. Mailers must prepare all merged 5-digit scheme 
sacks, 5-digit scheme carrier routes sacks, and merged 5-digit sacks 
that are possible in the mailing based on the volume of mail to the 
destination using L001 and the Carrier Route Indicators field in the 
City State Product. Mailers must label sacks according to the Line 1 
and Line 2 information listed below and under M032.
* * * * *
    [Amend the title and introduction of renumbered 2.5 to read as 
follows:]

2.5  Pallet Preparation and Labeling

    Mailers must prepare pallets in the manner and sequence listed 
below and under M041. Mailers must prepare all merged 5-digit scheme, 
5-digit scheme carrier routes, 5-digit scheme, and merged 5-digit 
pallets that are possible in the mailing based on the volume of mail to 
the destination using L001 and/or the City State Product. Mailers must 
label pallets according to the Line 1 and Line 2 information listed 
below and under M031.
* * * * *

M930  Merged Palletization of Packages Using a 5% Threshold

* * * * *
2.0  STANDARD MAIL

2.1  Basic Standards

    [Amend the introduction to read as follows:]
    Carrier route packages of flats in a carrier route rate mailing may 
be placed on the same pallet as 5-digit packages of flats from an 
automation rate mailing and 5-digit packages of flats from a Presorted 
rate mailing under the following conditions:
* * * * *
    [Amend 2.1d and 2.1e to delete references to the optional L001 
scheme sort.]
    d. Automation rate 5-digit packages and Presorted rate 5-digit 
packages may be copalletized with carrier route packages only when the 
pieces in the 5-digit packages do not exceed the 5% threshold described 
in 2.3. Pallets of mail sorted in this manner are called ``merged 5-
digit scheme'' pallets.
    e. If sortation under this section is performed, merged 5-digit 
scheme pallets must be prepared whenever there is enough volume of 
carrier route and 5-digit packages under M041 and 2.3 to prepare such 
pallets.
* * * * *
    [Amend 2.1h to delete references to the optional L001 scheme sort.]
    h. The packages from each separate mailing must be sorted together 
on pallets (copalletized) using presort software that is PAVE-
certified.
* * * * *

2.3  5% Threshold Standards

    [Amend the introduction of 2.3 to show that the L001 scheme sort is 
the only allowable sort.]
    Mailers may place 5-digit packages with carrier route packages on 
the same merged 5-digit scheme and merged 5-digit pallet if all of the 
following conditions are met:
* * * * *
    [Delete 2.4. Renumber 2.5 (palletizing with scheme sort) as 2.4. 
Amend the title and introduction of renumbered 2.4 to read as follows:]

2.4  Pallet Preparation and Labeling

    Mailers must prepare pallets of packages in the manner and sequence 
listed below and under M041. Mailers must prepare all merged 5-digit 
scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-
digit pallets that are possible in the mailing based on the volume of 
mail to the destination using L001 and the 5% threshold. Mailers must 
label pallets according to the Line 1 and Line 2 information listed 
below and under M031.
* * * * *

M940  Merged Palletization of Packages Using the City State Product and 
a 5% Threshold

* * * * *
2.0  STANDARD MAIL

2.1  Basic Standards

    [Amend the introduction to read as follows:]
    Carrier route packages of flats in a carrier route rate mailing may 
be placed on the same pallet as 5-digit packages of flats from an 
automation rate mailing and 5-digit packages of flats from a Presorted 
rate mailing under the following conditions:
* * * * *
    [Amend 2.1f to delete references to the optional L001 scheme sort.]
    f. If sortation under this section is performed, then merged 5-
digit scheme pallets must be prepared whenever there is enough volume 
of carrier route and 5-digit packages under M041 to prepare such 
pallets using the criteria in 2.1e and the sortation criteria in 2.4.
* * * * *
    [Amend 2.1j to delete references to the optional L001 scheme sort.]
    j. The packages from each separate mailing must be sorted together 
on pallets (copalletized) using presort software that is PAVE-
certified.
* * * * *

2.3  5% Threshold Standard

    [Amend the introduction to show that the L001 scheme sort is the 
only allowable sort.]
    For 5-digit ZIP Codes with a ``B'' or ``D'' indicator in the City 
State Product, mailers may place 5-digit packages with carrier route 
packages on the same merged 5-digit scheme and merged 5-digit pallet if 
all of the following conditions are met:
* * * * *
    [Delete 2.4. Renumber 2.5 (palletizing with scheme sort) as 2.4. 
Amend the title and introduction to read as follows:]

[[Page 28666]]

2.4  Pallet Preparation and Labeling

    Mailers must prepare pallets of packages in the manner and sequence 
listed below and under M041. Mailers must prepare all merged 5-digit 
scheme, 5-digit scheme carrier routes, 5-digit scheme, and merged 5-
digit pallets that are possible in the mailing based on the volume of 
mail to the destination using L001, the City State Product, and the 5% 
threshold. Mailers must label pallets according to the Line 1 and Line 
2 information listed below and under M031.
* * * * *
    An appropriate amendment to 39 CFR Part 111 to reflect these 
changes will be published.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 01-13174 Filed 5-23-01; 8:45 am]
BILLING CODE 7710-12-P