[Federal Register Volume 67, Number 73 (Tuesday, April 16, 2002)]
[Rules and Regulations]
[Pages 18684-18771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8928]



[[Page 18683]]

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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. R20011; 
Final Rule

  Federal Register / Vol. 67, No. 73 / Tuesday, April 16, 2002 / Rules 
and Regulations  

[[Page 18684]]


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POSTAL SERVICE

39 CFR Part 111


Changes to the Domestic Mail Manual to Implement Docket No. 
R2001-1

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 and special services 
included in the Decision of the Governors of the Postal Service in 
Postal Rate Commission Docket No. R2001-1.

EFFECTIVE DATE: This final rule is effective at 12:01 a.m. on June 30, 
2002.

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

SUPPLEMENTARY INFORMATION: On September 24, 2001, 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. R2001-1 and issued a notice of filing in Order No. 1324 
on September 26, 2001.
    On October 25, 2001, the PRC directed the participants to consider 
the possibility of a settlement. Noting the extraordinary national 
events experienced during September, and the potential effects that 
changed circumstances might have on the Postal Service's request, the 
PRC requested all participants consider whether substantial agreement 
on issues and objectives might permit a beneficial resolution of the 
proceeding.
    Counsel for the Postal Service, the Office of the Consumer 
Advocate, and participating intervenors discussed the issues presented 
by this case at conferences on October 30 and November 16, 2001, to 
which all intervenors and the Office of the Consumer Advocate were 
invited. The Postal Service also consulted with intervenors 
individually and in smaller groups.
    On December 17, 2001, the Postal Service filed a Stipulation and 
Agreement for settlement of Docket No. R2001-1, together with a motion 
for the establishment of preliminary procedures and a schedule. On 
December 26, 2001, the Postal Service with concurrence of its Board of 
Governors agreed to changes in the terms of the Stipulation and 
Agreement. These changes included specifying June 30, 2002, rather than 
June 2, 2002, as the earliest effective date for rate, fee, and 
classification changes. The revision also restored the rates for intra- 
and inter-BMC Parcel Post back to the levels originally proposed in the 
September 24, 2001, request. Between December 26, 2001, and January 17, 
2002, 50 parties adhered to the terms of the revised settlement by 
signing the agreement.
    On January 17, 2002, the Postal Service filed a second revised 
Stipulation and Agreement that included several relatively minor 
changes in the rates proposed for the Enhanced Carrier Route (ECR) 
subclass of Standard Mail. In all other respects, the Stipulation and 
Agreement remained the same. Subsequently, six additional parties 
adhered to the settlement agreement. Only one participant opposed the 
settlement.
    On January 30, 2002, the Postal Service published for comment in 
the Federal Register a proposed rule (67 FR 4562) that provided 
information on the implementation rules for the rate, fee, and 
classification changes the Postal Service proposed to adopt if the 
requested changes in Docket No. R2001-1 were recommended by the PRC and 
approved by the Board of Governors of the Postal Service.
    On February 13, 2002, the Postal Service filed a third revised 
Stipulation and Agreement that withdrew certain proposed changes 
concerning the listings of combinations of special services. In all 
other respects, the Stipulation and Agreement remained the same.
    On March 6, 2002, the Postal Service filed the original signatures 
of the participants in Docket No. R2001-1 who signed the Stipulation 
and Agreement. A total of 57 parties including the Postal Service 
signed the settlement agreement. Six parties of record did not sign the 
agreement, but did not oppose it. Only one party opposed the 
settlement.
    On March 22, 2002, 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. On April 8, 2002, the Board of Governors 
approved the recommended decision and established an implementation 
date of June 30, 2002, on which the adopted rates, fees, and 
classifications will take effect. This final rule contains the DMM 
standards adopted by the Postal Service to implement the decision of 
the Governors.
    A notice announcing the Governors' decision and the issuance of 
final Domestic Mail Classification Schedule and Rate Schedule changes 
is contained in a separate notice to be published in the Federal 
Register.
    Part A of this document identifies and responds to the comments 
received on the proposed rule and also summarizes the changes contained 
in this final rule that were not part of the proposed rule. Part B of 
this document summarizes the revisions to the DMM by class of mail and 
special service category. Part C summarizes the changes by DMM module 
and section. The actual changes to the DMM, which will take effect on 
June 30, 2002, appear at the end of this final rule.
    As information, the DMM language in this final rule incorporates 
all revisions to the DMM from previously published Federal Register 
final rules that have taken effect on or before March 31, 2002. As a 
result, the numbering and the language of the DMM sections in this 
final rule have been synchronized with the language in the current DMM 
56.
    Mailers are advised that the Postal Service is providing a 6-month 
phase-in period through January 1, 2003, for meeting the requirements 
for mail preparation and tray labeling of nonmachinable First-Class 
Mail and Standard Mail.

Part A--Comments on the Proposed Rule and Changes in the Final Rule

    On January 30, 2002, the Postal Service published a proposed rule 
in the Federal Register (67 FR 4562) 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. R2001-1 were approved. The Postal Service solicited comments on the 
proposed rule from members of the general public and responses from 12 
parties were received. The parties providing responses represented two 
industry associations, two mailers, six mailing agents, and two 
individuals. A summary of the comments received by subject matter is 
detailed in items 1 through 7. Item 8 summarizes the changes contained 
in the final rule that were not part of the proposed rule.

1. Express Mail

    Only one comment related to Express Mail. The commenter emphasized 
that the wording in DMM D500.1.5 pertaining to Express Mail refunds 
must not be misapplied to transportation failures of a routine nature 
(e.g., equipment failures, canceled flights). For Express Mail refunds 
that are denied due to a transportation breakdown, the commenter 
maintained that the breakdown must occur in a

[[Page 18685]]

substantial portion of the network (causing a massive disruption) and 
not be an isolated or routine incident. The Postal Service agrees with 
this comment and notes that this was the intent of the text in the 
proposed rule, which is also adopted in this final rule.

2. Periodicals

    Three of the commenters, who represented one mailer, one mailing 
agent, and one industry association, provided comments on several items 
related to Periodicals.
    One commenter requested a clarification of the new per piece pallet 
discounts, asking whether the discounts are cumulative or exclusive. To 
clarify, the pallet discounts are exclusive and cannot be applied to 
the same addressed piece. A $0.005 discount applies to each addressed 
nonletter piece on nondestination entry pallets and a $0.015 discount 
applies to each addressed nonletter piece on destination entry pallets. 
However, a per piece pallet discount may be claimed in addition to any 
destination entry rate and discount (DADC, DSCF, DDU) for which an 
addressed piece may also qualify.
    Regarding the Ride-Along classification, two commenters expressed 
an opinion that while they are pleased that the Ride-Along 
classification will become a permanent classification, the $0.024 per 
piece increase was too high. It is important to note the experimental 
rate of $0.10 had been in place since February 2000. The $0.024 
increase represents the cumulative increases in rates for R2000-1 
implemented in January 2001, the modified rates implemented in July 
2001, and the implementation of R2001-1. It must also be noted that 
modifying the Ride-Along rate would require action by the Postal Rate 
Commission, which is outside the scope of this rulemaking.
    One commenter asked about the eligibility of multiple sheets 
enclosed in an envelope mailed at the Ride-Along rate. To clarify, 
multiple sheets (e.g., coupons) can be enclosed within an envelope and 
mailed at the Ride-Along rate, providing all other standards for Ride-
Along are met. The same commenter asked, for multiple editions, if the 
required marking could be included in the identification statement so 
long as the editions in which a Ride-Along is included are defined in 
the identification statement. This was allowed during the experiment 
and will continue to be allowed.
    A further comment on Ride-Along asked for clarification to the 
standard for Ride-Along pieces contained within unbound publications. 
The DMM text in this final rule has been amended to clarify that a 
loose Ride-Along enclosure with an unbound publication does not have to 
be glued or permanently fastened within the host piece but must be 
combined with and inserted within the publication.
    One commenter recommended that co-located SCF/ADC facilities be 
defined and designated. As information, the Postal Service did not 
intend to allow DSCF rate eligibility for mail on DADC pallets. The 
proposed standard for DSCF rate eligibility published in the January 
30, 2002, Federal Register (67 FR 4562) indicated that the DSCF rate 
was applicable to mail on DADC pallets at co-located SCF and ADC 
facilities. The standards in E250 reflect this rate eligibility for 
addressed pieces deposited at such facilities. However, the Postal 
Service plans to change this standard appropriately in the next rate 
case.
    One commenter expressed support for the revision that will no 
longer require mailers to present hard copy Form 3553, Coding Accuracy 
Support System (CASS) Summary Report, with each postage statement. The 
commenter further suggested a similar revision be extended to the 
requirements for standardized presort documentation and the 
documentation required for Periodicals mailings using the simplified 
address format. While the Postal Service understands that the mailing 
lists for Periodicals mailings are generally consistent from issue to 
issue, standardized documentation is needed to support the postage 
rates and discounts claimed on the postage statements. It should be 
noted that documentation of postage is not required if the pieces are 
separated by rate and zone when presented for acceptance. For mailings 
using simplified address, the required documentation shows that the 
mailer is using up-to-date saturation density information. Therefore, 
the Postal Service does not intend to change the standards for the 
submission of postage and saturation density documentation at this 
time.
    One commenter raised issues regarding drop shipment discount 
eligibility in circumstances when the mail is not entered at the 
destination facility. The Postal Service recognizes that there are 
circumstances when the entry discount would apply even though the mail 
is not entered at the destination facility. For example, for barcoded 
letter-size Periodicals, the ADC entry discount would apply for mail 
entered at an ADC listed in L004 or a facility listed in L801. Another 
example of this may occur when 5-digit sacks are entered at the 
delivery unit. In this example, providing the mail is sorted to carrier 
routes at the local office (e.g., because either the ZIP Code is not an 
AFSM 100 automated zone or the pieces are not compatible with AFSM 100 
processing) and does not have to be taken to another facility for 
sorting, the mail would qualify for the SCF discount.
    One commenter expressed concern that the proposed rule changed 
eligibility standards for residential customer simplified address 
mailings. The Postal Service does not intend to change the standards 
for simplified address mailings in DMM E230.3.4.
    One commenter questioned the legal responsibilities of mailers when 
they sign a postage statement certifying that address quality and other 
rate requirements have been met. The responsibilities of mailers have 
not changed. Postage statements have always required that mailers sign 
the form to certify that their mailings meet postal eligibility 
standards.

3. Standard Mail

    Eight respondents provided comments related to Standard Mail. These 
commenters represented one mailer, five mailing agents, and one 
industry association. Comments related to the nonmachinable surcharge 
are discussed separately in item 6.
a. Automation Requirements for High Density and Saturation Letters
    The Postal Service received six comments regarding the new 
requirement that pieces mailed at Enhanced Carrier Route (ECR) high 
density and saturation letter rates be automation-compatible and bear a 
delivery point barcode. Mailers who choose not to make their letter-
size pieces automation-compatible or choose not to barcode will pay the 
ECR high density or saturation nonletter rate.
    The proposed classification changes for high density and saturation 
letters were submitted to the Postal Rate Commission as part of the 
original rate case filing and are factored into the overall rate design 
for ECR letters. The new requirements are specified in the Domestic 
Mail Classification Schedule (DMCS), which is the legal document that 
supports the standards in the DMM. Comments about rate design and DMCS 
language are handled as part of the proceedings of the Postal Rate 
Commission and are outside the scope of this rulemaking. However, we 
will address some of the concerns raised by the commenters.

[[Page 18686]]

    As a whole, the commenters opposed the additional requirements for 
high density and saturation rate letters, and they questioned the 
operational justifications behind including this requirement in the 
rate case filing. Some commenters predicted that the additional costs 
of installing barcoding technology or tabbing machines is greater than 
the ``penalty'' imposed by paying the nonletter rate. Therefore, 
mailers will find it more cost efficient to pay the nonletter rate. 
Commenters asserted that this rate structure will not give mailers an 
incentive to produce automation-compatible mailpieces. One commenter 
asked if mailers were consulted on this classification change before it 
was proposed to the Postal Rate Commission and asked that 
implementation be postponed to provide the mailing industry with more 
time to comment and respond to the changes.
    Two commenters asked that the automation requirements be waived for 
pieces entered at the destination delivery unit (DDU). It is the 
understanding of these commenters that very little automated sortation 
is performed at delivery units.
    The cost savings and operational efficiencies that will be captured 
through these automation requirements have been factored into the rate 
design for all high density and saturation rate letters, including 
those that receive the DDU discount. While it is true that little 
automated sortation is performed at the delivery unit, a significant 
volume of ECR letters is backhauled to the sectional center facility 
(SCF) for processing and sequencing. Therefore, the Postal Service 
receives operational benefits from these pieces being barcoded and 
automation-compatible.
    No comments were received in response to the proposed DMM language 
for implementing these changes. Therefore, effective with rate 
implementation, all pieces claimed at high density or saturation letter 
rates must be automation-compatible and must bear a delivery point 
barcode. Letters that do not meet these requirements may be mailed at 
high density or saturation nonletter rates.
b. Automation Heavy Letters
    The Postal Service received two comments asking for clarification 
on issues related to raising the weight limit for Standard Mail 
automation letters to 3.5 ounces.
    Two commenters asked for clarification on the weight increments for 
calculating postage for pieces between 3.3 and 3.5 ounces. As for all 
postage calculations, the single-piece weight is expressed in decimal 
weights and rounded off to four digits (see DMM P013.1.3). For example, 
if a piece weighs 3.444411 ounces, then the pound rate postage would be 
calculated using 3.4444 ounces as the weight.
    The same two commenters asked how residual (nonbarcoded) pieces 
from a regular Standard Mail heavy automation letter mailing would be 
treated. Pieces in a heavy automation mailing that cannot be barcoded 
will be treated as under current standards for automation letters. 
Pieces that are not barcoded cannot be mailed at automation rates and 
must be mailed at Presorted rates. Because there is no provision to 
apply the 3.5 ounce weight limit to Presorted letters, pieces that 
weigh more than 3.3 ounces must be mailed at the Presorted piece/pound 
rates. These residual pieces would be reported on a separate postage 
statement but, like today, they will not need to meet a separate 200-
piece or 50-pound minimum (see DMM E620.1.2). Mailers also have the 
option of mailing residual pieces at the First-Class Mail single-piece 
rate.
    Raising the weight limit for Presorted letters to 3.5 ounces would 
require action by the Postal Rate Commission and is outside the scope 
of this rulemaking.
    Current DMM E620.1.2 requires that residual pieces be part of the 
same mailing job and reported on the same postage statement as the rest 
of the ECR or automation rate mailing. The Postal Service has developed 
new postage statements for heavy automation letters (Forms 3602-HR, -
HP, -NHR, and -NHP) that do not include space for calculating postage 
for residual pieces mailed at Presorted rates. Therefore, a mailing job 
that contains heavy automation or heavy ECR letters and Presorted 
piece/pound rate letters would be reported on separate postage 
statements (although some facsimiles produced by presort software will 
combine these two into one). To accommodate this change, DMM E620.1.2 
has been revised as part of this final rule to remove the requirement 
that residual pieces be reported on the same postage statement.

4. Package Services

    Two commenters, who represented one mailing agent and one industry 
organization, provided comments on four items related to Package 
Services. Three of the items concerned Bound Printed Matter and the 
other involved Media Mail.
a. Bound Printed Matter
    One commenter proposed that the Postal Service define a Bound 
Printed Matter (BPM) parcel as any piece that is more than 1-1/4 inches 
thick at its thickest point. The definition quoted by the commenter was 
a BPM parcel is defined as ``any piece that is in a box or, if not in a 
box, is more than 1\1/4\-inch thick at its thickest point.'' This 
definition is applicable only when Delivery Confirmation or Signature 
Confirmation service is added to a First-Class Mail or Package Services 
parcel (see DMM C100.5.0 and C700.1.0h). In all other circumstances, 
the existing criteria in DMM C050 will continue to be used to define a 
parcel, including a BPM parcel.
    One commenter raised a question about the requirement that BPM 
pieces be sorted to the 5-digit level to qualify for DSCF rates. The 
Postal Service maintains its position that BPM must be sorted to 5-
digits in order to qualify for DSCF rates.
    The Postal Service proposed that BPM flats meet the standards in 
DMM C820 for flat sorting machine (FSM) 881 processing. One commenter 
stated that the standards in DMM C820 for FSM 1000 processing are not 
included in the formulation of the automated flat sorting machine 
(AFSM) 100 standards and that they should be. The Postal Service did 
not include the standards in DMM C820 for FSM 1000 processing in the 
eligibility requirements for the barcode discount for automation BPM 
flats because FSM 1000 standards are not consistent with the design of 
the AFSM 100. As information, the DMM language in this final rule does 
not incorporate revisions to the DMM standards for automation flats 
because this issue was not filed as part of Docket No. R2001-1. 
Therefore, the comment is outside the scope of this rulemaking. At a 
future date, the Postal Service will publish standards for the AFSM 100 
in a separate Federal Register notice for public comment.
    One commenter stated that upon completion of the testing of the 
AFSM 100, new standards are likely to be used for defining when BPM 
flats can be processed on the FSM 881. It is anticipated this change 
would affect the weight maximum for flats in particular. Since this 
issue was not filed as part of Docket No. R2001-1, the comment is 
outside the scope of this rule making. However, the Postal Service will 
publish for public comment the maximum weight for BPM flats at a future 
date in a separate Federal Register notice.
b. Media Mail and Library Mail
    One commenter believes the Postal Service should reinstate the 
option for preparing Media Mail in sacks to qualify

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for Presorted 5-digit or basic rates based on a minimum 1,000 cubic 
inches of mail. This option was eliminated for both Media Mail and 
Library Mail with the implementation of Docket No. R2000-1, which took 
effect on January 7, 2001. The Postal Service is not opposed to this 
suggestion and as part of this final rule reinstates the option for 
preparing sacks based on a minimum of 1,000 cubic inches of mail for 
both Media Mail and Library Mail.

5. Special Services

    The two individuals who responded both commented on items related 
to the proposal for adding an electronic option for return receipt 
service.
    Unrelated to these comments, the Postal Service has decided to 
delay implementation of the proposed electronic option until a future 
date. Consequently, the electronic option will not be available as 
proposed, and it is not included in this final rule.

6. Nonmachinable Surcharge

    Three respondents representing one individual, one mailing agent, 
and one industry association provided comments on the nonmachinable 
surcharge. One commenter asked for clarification of some of the 
criteria for nonmachinable letters published as proposed DMM C050.2.2.
    For item 2.2d, the commenter asked if a key that is affixed to a 
card or piece of cardboard inserted in an envelope would be 
nonmachinable and requested that the standard be reworded to read 
``loose keys and coins.''
    The Postal Service agrees that loose keys in an envelope would 
cause a piece to be nonmachinable and has made the suggested change to 
DMM C050.2.2d in this final rule. Mailers should note that a ``non-
bulky key'' (such as a house key) firmly affixed to a piece of stiff 
paper inserted into an envelope would be machinable; no surcharge would 
apply. A bulky key (such as a vehicle key with thick plastic at the 
top) in an envelope would pay the surcharge, regardless of whether or 
not that key was affixed to anything, due to the uneven thickness of 
the piece.
    For item 2.2f, the commenter requested that the standard be 
reworded to show that the minimum thickness requirement should apply to 
the ``majority of the surface area of a mailpiece.'' The commenter 
cited an example of a piece of business correspondence inserted into a 
#10 envelope. The majority of the surface of the piece is greater than 
.009 inches thick, but there is a small margin around the edges of the 
piece that is less than .009 inches thick. The commenter also 
questioned why the minimum thickness criteria applies to pieces of a 
certain size (as proposed, pieces more than 4\1/4\ inches high or 6 
inches long would have to be at least 0.009 inches thick).
    The Postal Service included a minimum thickness criteria because 
very flimsy mailpieces (such as a single sheet of unenveloped 
newsprint) cannot be processed efficiently on automated sorting 
equipment. This is especially true as pieces increase in height and 
length. These pieces must be handled manually. We believe that the 
standard as written is adequate to achieve this goal. The Postal 
Service does not measure the thickness of a mailpiece at the very edge. 
We will monitor the implementation of this criterion to ensure that 
mailers are not being assessed the surcharge on pieces that meet the 
thickness requirement for machinable pieces.
    Two commenters asked if the nonmachinable surcharge would apply to 
residual pieces from a Standard Mail automation flats mailing.
    Any piece mailed at the Presorted letter piece rate that meets one 
or more of the criteria in C050.2.2 would be subject to the 
nonmachinable surcharge. This includes pieces that are residual pieces 
from any automation mailing, including a mailing of automation flats.
    For example, a barcoded piece that is 8\1/2\ by 5\1/2\ inches and 
bears an address parallel to the shorter edge could be mailed as a 
Standard Mail automation flat. Pieces in this mailing that cannot be 
barcoded can be mailed at Presorted rates; the mailer would then have 
the option of paying the letter piece rate plus the nonmachinable 
surcharge (because the address is parallel to the shorter dimension) or 
the nonletter piece rate. Like today, these residual pieces will not 
need to meet a separate 200-piece or 50-pound minimum (see DMM 
E620.1.2). Mailers also have the option of mailing residual pieces at 
the First-Class Mail single-piece rate.

7. Pallet Load Minimum for Trays

    One commenter stated that the proposed change to DMM M041.5.0 has 
the effect of raising the minimum number of letter trays needed to make 
a pallet. The commenter believes that today's standard (three layers of 
letter trays) can be met with 14 2-foot trays (28 linear feet).
    The intent of this rule change is to create a measurement that 
mailers and postal employees can use to objectively determine whether 
the pallet minimum has been met. Under the current standard, mailers 
use a combination of 1-foot and 2-foot trays to create three full 
layers of letter trays on a pallet. Analysis by the Postal Service has 
determined that the minimum number of trays to create three layers is 
36 linear feet. We understand that some mailers do not properly layer 
letter trays and can create three layers with fewer than 36 linear feet 
(by stacking trays around the edges of the pallet with a hole in the 
middle). Stacking trays this way gives the appearance of meeting the 
requirement of three layers but, in fact, does not.
    We believe that a measurement that is objective and easy to 
understand, such as linear feet, will ensure that the pallet minimum is 
applied more consistently. However, in consideration of comments from 
the mailing industry, we will retain the current standard and add the 
linear feet measurement as an option. Therefore, in this final rule, 
DMM M041.5.0 has been revised to show that the pallet minimum is three 
layers of trays or 36 linear feet of trays. A mailer must make a pallet 
for a particular presort destination when they have six layers of trays 
or 72 linear feet of trays.

8. Other Changes and Clarifications in the Final Rule

    The following information summarizes the DMM changes contained in 
the final rule, but which were not published as part of the proposed 
rule.
a. First-Class Mail
    M032.2.4b was revised to replace references to upgradable mail with 
references to machinable mail. Barcoded tray labels will be allowed, 
but will not be required, for trays of First-Class Mail machinable 
letters. Zebra codes must not be used on trays of First-Class Mail 
machinable letters. Zebra codes indicate that the tray contains 
automation rate prebarcoded mail.
b. Standard Mail
    M032 was revised to show that barcoded tray labels will be required 
on trays of Enhanced Carrier Route (ECR) high-density and saturation 
letters. Barcoded tray labels will not be required for letter-size 
pieces mailed at the nonletter rate.
    M032.2.4b was revised to replace references to upgradable mail with 
references to machinable mail. Barcoded tray labels will be allowed, 
but will not be required, for trays of Standard Mail machinable 
letters. Zebra codes must not be used on trays of Standard Mail 
machinable letters. Zebra codes indicate that the tray contains 
automation rate prebarcoded mail.
    The rate tables in DMM R600.1.1 and 3.1 were changed to eliminate 
the rate

[[Page 18688]]

cell for mixed AADC automation letters entered at the destination 
sectional center facility (DSCF). This is because mixed or working 
trays must be entered at the origin facility, and not all of the pieces 
in the mixed AADC tray would be addressed for delivery within the SCF 
service area. In addition, the DSCF discount is available for pieces 
mailed at the AADC rate only when those pieces are in a 3-digit tray 
(e.g., a less-than-full 3-digit origin tray). It is not available for 
pieces mailed at the AADC rate that are in an AADC tray. No changes to 
DMM E650.6.0 are required to implement this change.
    The proposed rule stated that ECR high density and saturation 
letter rate pieces that are not automation-compatible and are not 
barcoded could be mailed at the high density and saturation nonletter 
rates, or at the basic rate. Our intention in offering the basic rate 
was to give mailers more options, but after additional analysis it 
seems unlikely, given the rate differentials, that a mailer would ever 
choose to mail these letters at the basic rate. Therefore, we have 
eliminated that option from DMM E630.3.2 and E630.4.2.
    The option to allow mailers to qualify for ECR high density rates 
on routes with fewer than 125 possible deliveries has been added back 
into DMM E630.3.0. That option was removed in the proposed rule because 
we thought that any mailer covering 100% of a carrier route would 
choose to claim the lower saturation rates. We have since learned that 
some mailers use this method to qualify for high density rates (they 
forgo the saturation rate because of operational efficiencies such as 
preparing pieces with identical markings).
c. Special Services
    A service enhancement for registered mail and certified mail is 
included in the final rule. Mailers will be able to access delivery 
information over the Internet at www.usps.com by entering the article 
number shown on the mailing receipt. No delivery record will be 
provided by the Postal Service.
d. Postage Payment
    In P910.3.3, the manifest rate category abbreviations for First-
Class Mail and Standard Mail were changed.
    In P960.3.2, the MLOCR rate and postage markings were changed for 
First-Class Mail pieces that weigh between 10 and 13 ounces.

Part B--Summary of Changes by Class of Mail

    The following information details the R2001-1 changes organized by 
class of mail or special service category. This information is intended 
as an overview only and should not be viewed as defining every DMM 
revision adopted in this final rule.

1. Express Mail

a. Express Mail Rate Highlights
    Overall, Express Mail rates will increase an average of 9.4%. The 
most significant change to the Express Mail rate structure will be to 
the flat-rate envelope. Currently, the rate for the Express Mail flat-
rate envelope is the same as the applicable 2-pound rate. The rate for 
the flat-rate envelope will be the \1/2\ pound rate, which is the 
lowest available rate for each Express Mail service offering. The rate 
for the flat-rate envelope will decrease for Post Office to Addressee 
service from $16.25 to $13.65, but the size of the envelope will remain 
the same. The Express Mail flat-rate envelope will continue to be the 
EP 13F envelope that is available from the Postal Service.
    The indemnity included in the price of Express Mail will be reduced 
from $500 to $100 for both merchandise and document reconstruction. 
This adjustment will more closely align with general industry practice. 
The fee for every $100 increment of additional merchandise insurance 
desired above the standard $100 and up to $5,000 will be $1.00.
b. Express Mail Rate Structure
    There will be no changes to the rate structure of Express Mail.
c. Express Mail Preparation Changes
    There will be no changes to mail preparation requirements for 
Express Mail.

2. Priority Mail

a. Priority Mail Rate Highlights
    Overall, Priority Mail rates will increase an average of 13.5%. 
Currently, the rate for the Priority Mail flat-rate envelope is the 
same as the 2-pound rate. Because of the rezoning of all rates from 2 
to 5 pounds, the rate for the flat-rate envelope will be tied to the 1-
pound rate. The 1-pound rate will increase from $3.50 to $3.85 and 
remain an unzoned rate. The rate for the flat-rate envelope will 
decrease from $3.95 to $3.85, but the size of the envelope will remain 
the same. The Priority Mail flat-rate envelope will continue to be the 
EP 14F envelope that is available from the Postal Service.
b. Priority Mail Rate Structure
    Currently, Priority Mail rates are not zoned for pieces weighing 5 
pounds and under, but they are zoned for pieces weighing more than 5 
pounds. Weight increments over 1 pound and up to 5 pounds will be zoned 
to more accurately reflect actual costs to the Postal Service for 
transportation and handling.
c. Priority Mail Preparation Changes
    There will be 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 an average of 7.9%. 
The single-piece 1-ounce First-Class Mail rate will increase from $0.34 
to $0.37, and the single-piece card rate from $0.21 to $0.23. The 
additional ounce rate for single-piece First-Class Mail will remain at 
$0.23. There will be a lower additional ounce rate for Presorted and 
automation First-Class Mail.
    Business mailers will see larger automation presort discounts. The 
carrier route automation discount and the nonautomation presort 
discount will remain at current levels. The proposed increase in 
automation discounts and the proposed half-cent reduction in the 
workshare additional-ounce rate will result in more attractive rate 
incentives, especially for large-volume First-Class Mail users who 
presort and mail heavier pieces.
    The presort mailing fee will increase from $125 to $150.
b. First-Class Mail Rate Structure and Mail Preparation
    (1) Lower Additional Ounce for Presorted and Automation Rates
    Currently, there is a single additional ounce rate for all pieces 
mailed at First-Class Mail rates. For Presorted and automation pieces 
weighing more than two ounces, a heavy piece discount is deducted.
    The Postal Service will implement a lower additional ounce rate for 
workshare First-Class Mail. Pieces mailed at single-piece rates will 
pay $0.23 for each additional ounce; pieces mailed at any workshare 
rate will pay $0.225 for each additional ounce. This change affects 
only postage rates.
(2) Automation Basic Rate Split Into Two New Rates
    For automation cards and letters, the current rate structure 
contains a 5-digit, 3-digit, and basic rate. The new rate structure 
will split the basic rate into an automated area distribution center 
(AADC) rate (for all pieces in an AADC tray) and a mixed AADC rate (for 
all pieces in a mixed AADC tray). The

[[Page 18689]]

AADC rate also will apply to pieces in a less-than-full 3-digit tray. 
There are no sortation changes for automation cards and letters. The 5-
digit sort level will still be optional; all other sort levels will be 
required.
    For automation flats, the current rate structure contains a 5-
digit, 3-digit, and basic rate. The new rate structure will split the 
basic rate into an area distribution center (ADC) rate (for all pieces 
in an ADC package or tray) and a mixed ADC rate (for all pieces in a 
mixed ADC package or tray). The ADC rate also will apply to pieces in a 
less-than-full 3-digit tray. There are no sortation changes for 
automation flats. The 5-digit sort level still will be optional; all 
other sort levels will be required.
(3) Nonmachinable Surcharge
    The definition of the current nonstandard surcharge will be 
expanded to include certain physical criteria that could make a 
mailpiece nonmachinable. Pieces that are nonmachinable are excluded 
from automated processing and must be handled manually. Nonmachinable 
pieces also may impede mail flow or damage the mail or mail processing 
equipment. Manual pieces are considerably more costly to process than 
machinable letters.
    The criteria for nonmachinable letter-size pieces will be listed in 
DMM C050.2.2. The nonmachinable surcharge will apply to single-piece 
and Presorted rate letters that weigh 1 ounce or less and meets one or 
more of the criteria in that section. Machinable pieces are not subject 
to any restrictions regarding the OCR read area or barcode clear zone.
    The nonmachinable surcharge also will apply to single-piece, 
Presorted, and automation rate nonletters (flats and parcels) that 
weigh 1 ounce or less if any one of the following applies:
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
    The nonmachinable surcharge will be $0.12 for single-piece rate 
pieces and $0.055 for Presorted and automation rate pieces.
    The nonmachinable criteria in C050.2.2 do not apply to pieces 
mailed at any card rate.
    The nonmachinable surcharge will apply to letter-size pieces (but 
not card rate pieces) for which the mailer has chosen the manual only 
(``do not automate'') option. For card rate pieces, a mailer can 
specify manual handling, but they will not be charged a surcharge.
    This change is consistent with the addition of a nonmachinable 
surcharge for Standard Mail.
    In conjunction with this change, trays of machinable and 
nonmachinable letters will be prepared and labeled differently. The 
preparation for machinable letters will be similar to the current 
preparation for upgradable letters (e.g., no packaging, optional 5-
digit sort level); the preparation for nonmachinable pieces will be 
similar to the current package-based preparation for Presorted letters. 
The current weight limit for upgradable letters (2.5 ounces) will be 
replaced with a weight limit of 3.3 ounces for machinable letters. 
Letters heavier than 3.3 ounces and less than \1/4\-inch thick will use 
the nonmachinable preparation and labeling but will not pay the 
surcharge (because it applies only to pieces that weigh 1 ounce or 
less).
    On tray labels, the current ``NON BC'' (``not barcoded'') 
designation will be replaced with one of two designations: ``MACH'' for 
machinable pieces or ``MANUAL'' for nonmachinable pieces. Although card 
rate pieces will not be subject to the surcharge, mailers will be 
required to show on the tray label whether or not those pieces are 
machinable (for instance, a double card that is not tabbed is not 
machinable). The ``MANUAL'' designation will help the Postal Service 
direct trays of mail to the appropriate mail processing operation. As 
is currently required, mailers who choose the ``do not automate'' 
option will show ``MANUAL'' on Line 2 of the tray label.
    Barcoded tray labels are allowed, but are not required, for trays 
of First-Class Mail machinable letters. Zebra codes must not be used on 
trays of First-Class Mail machinable letters (zebra codes indicate that 
the tray contains automation rate prebarcoded mail).
    Software vendors should note that machinable and nonmachinable 
(manual) letters will use different content identifier numbers (CINs) 
(see M032 Exhibit 1.3a).
    There are no preparation or labeling changes for Presorted flats or 
parcels subject to the surcharge.
    Mail preparation instructions for Presorted letter-size pieces 
subject to the nonmachinable surcharge will be included in DMM M130. 
Preparation instructions for automation flats subject to the 
nonmachinable surcharge will not change (see current DMM M820).
    The nonmachinable surcharge will be assessed on any piece mailed 
out as a different class of mail and returned as First-Class Mail (for 
instance, Standard Mail endorsed ``Return Service Requested'') if the 
piece weighs 1 ounce or less and meets the criteria for 
nonmachinability in C050.2.2. Pieces returned at First-Class Mail card 
rates will not be subject to the nonmachinable surcharge.
    The nonmachinable surcharge will take effect when new rates are 
implemented; however, mailers have until January 1, 2003, to comply 
with the mail preparation and tray labeling changes.
(4) Delivery Confirmation and Signature Confirmation for First-Class 
Mail Parcels
    The Postal Service will add two new special service options for 
First-Class Mail parcels: Delivery Confirmation and Signature 
Confirmation. Both services will be available in manual (retail) and 
electronic options. The fees for Delivery Confirmation will be $0.55 
(retail) and $0.13 (electronic). The fees for Signature Confirmation 
will be $1.80 (retail) and $1.30 (electronic).
    For the purposes of adding Delivery Confirmation or Signature 
Confirmation, a First-Class Mail parcel is defined as any piece that:
    (a) Has an address side with enough surface area to fit the 
delivery address, return address, postage, markings and endorsements, 
and special service label; and
    (b) Is in a box or, if not in a box, is greater than \3/4\-inch 
thick at its thickest point.
    This definition will provide mailers many different packaging 
options for their First-Class Mail parcels.
(5) Containerization and Labeling
    For letter-size pieces, a full tray will be defined as one that is 
100% full, with a range between 75% and 100%. The recommended default 
for presort software will be 85%. In addition, after the minimum volume 
for rate eligibility is reached (i.e., 150 pieces for a 3-digit area), 
overflow will be optional for all sort levels of letter trays. Also, 
mailers will be required to use as few trays as possible: Under current 
standards, a mailer could prepare one full 1-foot tray plus one less-
than-full 1-foot tray; new standards will result in the preparation of 
a single less-than-full 2-foot tray.
    On all First-Class Mail letter trays, ``LTRS'' will change to 
``LTR'' and ``CR-RTS'' will change to ``CR-RT.'' This change is 
necessary to allow more room for other information on the tray label. 
Mailers have until January 1, 2003, to comply with these labeling 
changes.

[[Page 18690]]

(6) Documentation
    Mailers will no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents will continue to keep this 
documentation on file for 1 year from the date of mailing and make it 
available to the Postal Service on 24-hour notice.
    Software vendors and mailers should note that changes will be made 
to manifest keyline rate codes (DMM P910.3.0) and MLOCR rate markings 
(DMM P960.3.0) to reflect the new First-Class Mail rate categories.

4. Periodicals

a. Periodicals Rate and Fees Highlights
    The overall average increase for Periodicals will be 10.0%. 
Outside-County postage will increase on average 10.3%, while In-County 
postage will increase on average 1.7%. The destination delivery unit 
(DDU) discount will increase (from $0.017 to $0.018), while the 
destination sectional center facility (DSCF) discount will remain at 
$0.008. The new destination area distribution center (DADC) discount 
will be $0.002. The new pallet discount will be $0.015 per addressed 
piece for destination entry pallets and $0.005 per addressed piece for 
all other pallets (nondestination entry).
    Original entry and additional entry application fees will increase 
from $350 to $375 and from $50 to $60, respectively, while the fees for 
reentry and news agent registry will remain at $40.
b. Periodicals Rate Structure
(1) Changes
    Changes to the rate design for Periodicals are as follows:
    (a) New destination area distribution (DADC) advertising pound rate 
and a per piece discount for each Outside-County addressed piece.
    (b) Destination rates and discounts will be limited to mail entered 
at the actual destination entry facility (DADC, DSCF, and DDU), unless 
designated otherwise by the Postal Service.
    (c) A new per piece pallet discount for each addressed nonletter-
size piece (flat-size or irregular parcels) prepared in packages on 
pallets (nondestination entry) that contain at least 250 pounds of 
mail. This discount will apply to all pallet levels. The discount will 
not apply to pieces in sacks on pallets or in trays on pallets.
    (d) A new destination entry per piece pallet discount will apply to 
each addressed piece of nonletter-size mail (flat-size or irregular 
parcels) prepared in packages on any destination entry pallet of at 
least 250 pounds of mail. The discount is not available for pieces in 
sacks or trays on pallets. For destination delivery units that cannot 
accept pallets, mailers may claim the pallet discount on DDU mail of at 
least 250 pounds to the DDU when presented as prescribed by the USPS.
    In conjunction with the nonmachinable surcharge, a Periodicals 
mailpiece returned to the sender at First-Class Mail rates is subject 
to the nonmachinable surcharge if the piece weighs 1 ounce or less and 
meets one or more of the nonmachinable characteristics in C050.2.2.
(2) Periodicals Ride-Along
    The Ride-Along experiment will become a permanent classification. 
There will be no changes in the current eligibility standards. However, 
publishers will no longer be required to complete a data collection 
questionnaire, provide a sample mailpiece in addition to the marked 
copy, or submit Form 3541-X (postage statement). Form 3541-X will be 
discontinued and mailers will use Form 3541. The standards for Ride-
Along will be relocated to new DMM E260. The Ride-Along rate will 
increase from $0.10 to $0.124 per piece.
(3) Containerization
    For letter-size pieces, a full tray will be defined as one that is 
100% full, with a range between 75% and 100%.The recommended default 
for presort software will be 85%. In addition, after the minimum volume 
for rate eligibility is reached (i.e., 150 pieces for a 3-digit area), 
overflow will be optional for all sort levels of letter trays. Also, 
mailers will be required to use as few trays as possible. Under current 
standards, a mailer could prepare one full 1-foot tray plus one less-
than-full 1-foot tray; new standards will result in the preparation of 
a single less-than-full 2-foot tray.
    We have added an option to measure the minimum volume of trays on 
pallets in linear feet. The pallet minimum can be met with three layers 
of trays or 36 linear feet of trays. A mailer must make a pallet for a 
particular presort destination when they have six layers of trays or 72 
linear feet of trays.
(4) Documentation
    Mailers will no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents will continue to keep this 
documentation on file for 1 year from the date of mailing and make it 
available to the Postal Service on 24-hour notice.

5. Standard Mail

a. Standard Mail Rate Highlights
    Overall, Standard Mail rates will increase an average of 7.1%. On 
average, rates for flat-size mail will increase more than rates for 
letter-size mail. Regular and nonprofit rates will increase an average 
of 7.5% and Enhanced Carrier Route (ECR) rates will increase an average 
of 6.2%. Greater destination entry discounts will provide an incentive 
for mailers to use their own or third-party transportation to move 
Standard Mail closer to the point of delivery.
    The annual mailing fee will increase from $125 to $150.
b. Standard Mail Rate Structure and Mail Preparation
(1) Automation Basic Letter Rate Split Into Two New Rates
    For automation letter-size pieces, the current rate structure 
contains 5-digit, 3-digit, and basic rates. The new rate structure 
splits the basic rate into an AADC rate (for all pieces in an AADC 
tray) and a mixed AADC rate (for all pieces in a mixed AADC tray). The 
AADC rate also will apply to all pieces in any less-than-full origin or 
entry 3-digit or 3-digit scheme tray. There will not be any sortation 
changes for automation letter-size pieces. The 5-digit sort level will 
still be optional; all other sort levels will be required.
    The destination sectional center facility (DSCF) discount is not 
available for pieces mailed at the mixed AADC rate. This is because 
mixed or working trays must be entered at the origin facility, and no 
pieces in the mixed AADC tray would be addressed for delivery within 
the SCF service area. In addition, the DSCF discount is available for 
pieces mailed at the AADC rate only when those pieces are in an origin 
or entry 3-digit tray. It is not available for pieces mailed at the 
AADC rate that are in an AADC tray.
    Unlike in First-Class Mail, where the ADC and mixed ADC rates will 
apply to automation flats, there will not be any changes to the rate 
structure for Standard Mail automation flats.
(2) Nonmachinable Surcharge
    A nonmachinable surcharge will apply to some Standard Mail letter-
size pieces mailed at Presorted rates; the definition will include 
certain physical criteria that could make a mailpiece nonmachinable. 
Pieces that are nonmachinable are excluded from automated processing 
and must be

[[Page 18691]]

handled manually. Nonmachinable pieces also may impede mail flow or 
damage the mail or mail processing equipment. Manual letters are 
considerably more costly to process than machinable letters.
    The criteria for nonmachinable letter-size pieces will be listed in 
DMM C050.2.2. The nonmachinable surcharge will apply to Presorted rate 
letter-size pieces (including cards) that weigh 3.3 ounces or less and 
meet one or more of the criteria in that section. Machinable pieces are 
not subject to any restrictions regarding the OCR read area or barcode 
clear zone. This classification change is consistent with the 
nonmachinable surcharge for First-Class Mail.
    Unlike First-Class Mail, where the nonmachinable surcharge will 
apply to flats, the Postal Service is not adding a nonmachinable 
surcharge to Standard Mail flats. The Standard Mail rate structure 
includes separate rates for letters and nonletters and factors in the 
extra costs of handling nonmachinable nonletters.
    The nonmachinable surcharge will be $0.04 per piece for regular 
Presorted rate pieces and $0.02 per piece for nonprofit Presorted rate 
pieces (see DMM R600).
    The nonmachinable surcharge will apply to Presorted rate letter-
size pieces for which the mailer has chosen the ``manual only'' (do not 
automate) option.
    The nonmachinable surcharge will not apply to pieces mailed at any 
ECR rate or to automation rate letters (which are by definition 
machinable).
    In conjunction with this change, trays of machinable and 
nonmachinable letters will be prepared and labeled differently.
    The preparation for machinable letters will be similar to the 
current preparation for upgradable letters (e.g., no packaging, 
optional 5-digit sort level); the preparation for nonmachinable pieces 
will be similar to the current package-based preparation for Presorted 
letters. The current weight limit for upgradable letters (2.5 ounces) 
will be replaced with a weight limit of 3.3 ounces for machinable 
letters.
    On tray labels, the current ``NON BC'' (``not barcoded'') 
designation will be replaced with one of two designations: ``MACH'' for 
machinable pieces or ``MANUAL'' for nonmachinable pieces. The 
``MANUAL'' designation will help the Postal Service direct the trays of 
mail to the appropriate mail processing operation. As is currently 
required, mailers who choose the ``do not automate'' option will show 
``MANUAL'' on Line 2 of the tray label.
    Barcoded tray labels are allowed, but are not required, for trays 
of Standard Mail machinable letters. Zebra codes must not be used on 
trays of Standard Mail machinable letters (zebra codes indicate that 
the tray contains automation rate prebarcoded mail).
    Software vendors should note that machinable and nonmachinable 
(manual) letters will use different content identifier numbers (CINs) 
(see M032 Exhibit 1.3a).
    Mail preparation instructions for Standard Mail pieces subject to 
the nonmachinable surcharge will be included in DMM M610.
    In a mailing of nonmachinable letter-size pieces, residual Standard 
Mail pieces sent at First-Class Mail rates will be subject to the 
First-Class Mail nonmachinable surcharge only if the pieces weigh 1 
ounce or less. Heavier pieces will not be subject to the First-Class 
Mail nonmachinable surcharge, even though those same pieces would have 
been subject to the Standard Mail nonmachinable surcharge if they had 
remained in the Standard Mail mailing. Additionally, residual Standard 
Mail pieces mailed at First-Class Mail card rates will not be subject 
to the nonmachinable surcharge.
    Mailers should note that residual pieces from a Standard Mail 
automation flats mailing could be subject to the nonmachinable 
surcharge if the residual is mailed at Presorted letter piece rates. 
For example, a barcoded piece that is 8\1/2\'' by 5\1/2\'' inches and 
bears an address parallel to the shorter edge could be mailed as an 
automation flat. Pieces in this job that cannot be barcoded would fall 
to Presorted rates; the mailer would then have the option of paying the 
letter piece rate plus the nonmachinable surcharge (because the address 
is parallel to the shorter dimension) or the nonletter piece rate.
    Standard Mail pieces that are returned as First-Class Mail (for 
instance, an undeliverable piece endorsed ``Return Service Requested'') 
will be charged the nonmachinable surcharge if the piece weighs 1 ounce 
or less and meets the criteria for nonmachinability in C050.2.2. The 
nonmachinable surcharge also will be figured into the calculation for 
the weighted fee for pieces that weigh 1 ounce or less. The 
nonmachinable surcharge will not be charged on pieces returned at 
First-Class Mail card rates.
    The nonmachinable surcharge will take effect when new rates are 
implemented; however, mailers have until January 1, 2003, to comply 
with the mail preparation and tray labeling changes.
(3) Heavier Letters Are Eligible for Automation Rates
    The maximum weight limit for automation letters will increase from 
3.3 ounces to 3.5 ounces (inclusive). These pieces will be charged 
postage equal to the automation piece/pound rate and receive a discount 
equal to the automation nonletter piece rate (3.3 ounces or less) minus 
the corresponding automation letter piece rate (3.3 ounces or less) for 
the appropriate sort level. This change applies to regular and 
nonprofit automation letters, and to automation carrier route letters.
    Mailers who choose to take this discount for heavy automation 
letters will be required to use a new postage statement designed for 
this purpose. On the permit imprint postage statement, the discount is 
precalculated and has been deducted from the piece rate. The example 
below follows that same model. Mailers should note that for nonprofit 
5-digit automation letters the discount is larger than the piece rate; 
therefore, subtracting the discount from the piece rate results in a 
negative number.
    Mailers who choose the postage affixed (metered postage) option 
will be required to affix the full postage amount to each piece (see 
DMM P600.2.2).
    As an example, a regular automation letter weighing 3.45 ounces 
that is sorted in a 3-digit tray for DSCF entry will be charged:

------------------------------------------------------------------------
                                                            Calculation
                                            Calculation     for 10,000
                                            for 1 piece       pieces
------------------------------------------------------------------------
Nonletter piece rate (more than 3.3               $0.115       $1,150.00
 ounces), \3/5\ rate....................
Minus                                     ..............  ..............
A discount that equals the \3/5\                   -.058         -580.00
 nonletter piece rate (3.3 ounces or
 less) for DSCF entry minus the 3-digit
 letter piece rate (3.3 ounces or less)
 for DSCF entry (0.235 minus 0.177).....
Equals                                    ..............  ..............
Adjusted piece rate (as will appear on             0.057          570.00
 permit imprint postage statement)......

[[Page 18692]]

 
Plus                                      ..............  ..............
Pound rate (more than 3.3 ounces), \3/5\       0.1256948       1,256.948
 rate, DSCF entry (3.45 ounces divided
 by 16 ounces equals 0.215625 pounds,
 rounded to 0.2156 pounds, multiplied by
 $0.583 per pound)......................
Equals total postage....................          0.1827       1,826.948
------------------------------------------------------------------------

    This change will allow mailers to avoid the substantial rate 
increase for letter-size pieces exceeding 3.3 ounces. Under the current 
rate schedule, once an automation letter exceeds the 3.3-ounce maximum 
weight, the piece becomes subject to the piece/pound rates.
    There are no mail preparation changes that accompany this change; 
these heavy letters will be required to meet the current standards for 
heavy automation letters in DMM C810.7.5 and will use the existing mail 
preparation sequence and labeling for automation letters. Current 
standards for mixed-rate mailings will not change. Residual pieces from 
a heavy automation letter mailing that cannot be barcoded can be mailed 
at single-piece First-Class Mail rates or prepared as a Presorted 
Standard Mail letter mailing with postage paid at the piece/pound rate 
(for pieces over 3.3 ounces). Like today, these residual pieces will 
not need to meet a separate 200-piece or 50-pound minimum (see DMM 
E620.1.2) and will be reported on separate postage statements.
(4) Barcode Requirement for ECR Letter-Size Pieces
    ECR letter-size pieces mailed at high-density and saturation piece 
(letter) rates will be required to meet the physical standards for 
automation-compatible mail in DMM C810 and will be required to have a 
delivery point barcode. Pieces using simplified address will not be 
required to have a delivery point barcode and therefore will not need 
to meet the physical standards for automation'compatible mail to 
qualify for letter rates.
    This change will apply to both ECR and Nonprofit ECR.
    Requiring high density and saturation letters to be prebarcoded 
gives the Postal Service operational flexibility and eliminates the 
need to barcode these pieces if they are sent to delivery point 
sequencing (DPS). The requirement for automation-compatibility 
corresponds to the requirement for a delivery point barcode'for the 
Postal Service to read the barcode, the piece must be compatible with 
automated mail sorting equipment. These requirements will not apply to 
detached address labels (DALs) that accompany flat-size pieces or 
irregular parcels. Even though the DAL itself is letter-size, 
technically it is the label for the larger piece.
    Pieces that do not meet the physical standards in C810 or that do 
not contain a delivery point barcode will be subject to the 
corresponding ECR high density or saturation nonletter rate. Pieces 
that are letter-size but claimed at the nonletter rates will be marked, 
sorted, and trayed as letters.
    There are no changes to the sequencing requirements, markings, or 
sortation for Enhanced Carrier Route pieces. Tray labels will change to 
reflect whether the pieces in the tray are barcoded (``BC''), not 
barcoded but machinable (``MACH''), or nonmachinable, regardless of 
whether the pieces are barcoded (``MANUAL'' or ``MAN''). These 
designations help the Postal Service direct the trays of mail to the 
appropriate mail processing operation. Mailers will be required to use 
barcoded tray labels.
    Pieces with a simplified address format do not contain the 
necessary address elements to generate a delivery point barcode. To 
qualify for the saturation letter rate, those pieces will not have to 
bear a delivery point barcode, will not have to be automation-
compatible, and will be labeled ``MAN'' (even if the pieces are 
machinable).
    Pieces with exceptional or ``occupant'' addresses (A040) do contain 
enough address elements to generate a delivery point barcode and 
therefore must be automation-compatible and must bear a delivery point 
barcode in order to claim the high density or saturation letter rates.
    Software vendors should note that within each of the three 
processing options (BC/MACH/MAN), the same content identifier number 
(CIN) will be used for all direct carrier route trays (see DMM Exhibit 
M032.1.3a).
    Mailers will not be permitted to combine barcoded and nonbarcoded 
pieces into the same mailing. Therefore, nonbarcoded pieces will have 
to be presented as a separate mailing, but will not need to meet a 
separate 200-piece or 50-pound minimum volume requirement.
    The new requirements for high density and saturation letter rates 
will take effect the day new rates are implemented; however, mailers 
have until January 1, 2003, to comply with the tray labeling changes.
(5) Heavier Automation-Compatible ECR Letters Are Eligible for Letter 
Rates
    The maximum weight limit for automation-compatible ECR letters will 
increase from 3.3 ounces to 3.5 ounces (inclusive). These pieces will 
be charged postage equal to the nonletter piece/pound rate and receive 
a discount equal to the nonletter piece rate (3.3 ounces or less) minus 
the corresponding letter piece rate (3.3 ounces or less) for the 
appropriate sort level. This change applies to regular and nonprofit 
ECR saturation and high density letters.
    For regular ECR, the discount will be $0.005 per piece for high 
density letters and $0.008 per piece for saturation letters. For 
nonprofit ECR, the discount will be $0.008 per piece for high density 
letters and $0.009 per piece for saturation letters.
    This change also will apply to pieces mailed at the ECR automation 
basic rate, but the calculation is slightly different because there are 
no corresponding piece/pound and nonletter rates with which to perform 
the calculation. These pieces will be charged postage equal to the 
basic ECR piece/pound rate and receive a discount equal to the basic 
nonletter rate minus the automation basic letter rate. For regular ECR, 
the discount will be $0.023 per piece. For nonprofit ECR, the discount 
will be $0.015 per piece.
    As a result of other classification changes (see item 4 above), all 
pieces mailed at high density and saturation letter rates will be 
barcoded and automation-compatible; therefore, this change is 
consistent with the change for regular Standard Mail regular automation 
letters. This change will not apply to letter-size pieces that are 
mailed at the nonletter rates (i.e., pieces that are not automation-
compatible or do not have a barcode).
    This change will not apply to pieces mailed at the ECR basic letter 
rate (because the letter and nonletter rates are the same, there is no 
discount to subtract).

[[Page 18693]]

    Mailers who choose to take this discount for heavy ECR letters will 
be required to use a new postage statement designed for this purpose. 
On the permit imprint postage statement, the discount is precalculated 
and has been deducted from the piece rate. The example below follows 
that same model.
    Mailers who choose the postage affixed (metered postage) option 
will be required to affix the full postage amount to each piece (see 
P600.2.2).
    As an example, a high density letter weighing 3.45 ounces that is 
prepared for DSCF entry will be charged:

------------------------------------------------------------------------
                                                            Calculation
                                            Calculation     for 10,000
                                            for 1 piece       pieces
------------------------------------------------------------------------
Nonletter piece rate (more than 3.3               $0.043         $430.00
 ounces), high density..................
Minus                                     ..............  ..............
A discount that equals the high density            -.005          -50.00
 nonletter piece rate (3.3 ounces or
 less) for DSCF entry minus the high
 density letter piece rate (3.3 ounces
 or less) for DSCF entry (0.143 minus
 0.138).................................
Equals                                    ..............  ..............
Adjusted piece rate (as will appear on             0.038          380.00
 permit imprint postage statement)......
Plus                                      ..............  ..............
Pound rate (more than 3.3 ounces), high         0.104566        1,045.66
 density, DSCF entry (3.45 ounces
 divided by 16 ounces equals 0.215625
 pounds, rounded to 0.2156, multiplied
 by $0.485 per pound)...................
Equals postage per piece................          0.1426        1,425.66
------------------------------------------------------------------------

    This change will allow mailers to avoid the substantial rate 
increase for letter-size pieces exceeding 3.3 ounces. Under the current 
rate schedule, once an ECR letter exceeds the 3.3-ounce maximum weight, 
the piece becomes subject to the piece/pound rates.
    There are no mail preparation changes that accompany this change; 
these heavy letters will be required to meet the current standards for 
heavy automation letters in DMM C810.7.5 and will use the existing mail 
preparation sequence and labeling for ECR letters.
(6) Containerization and Labeling
    For letter-size pieces, the definition of a full tray will change 
from the current threshold of 75% to 100%, with a range between 75% and 
100%. The recommended default for presort software will be 85%. In 
addition, after the minimum volume for rate eligibility is reached 
(i.e., 150 pieces for a 3-digit area), overflow will be optional for 
all sort levels of letter trays. Also, mailers will be required to use 
as few trays as possible. Under current standards, a mailer could 
prepare one full 1-foot tray plus one less-than-full 1-foot tray; new 
standards will result in the preparation of a single less-than-full 2-
foot tray.
    We have added an option to measure the minimum volume of trays on 
pallets in linear feet. The pallet minimum can be met with three layers 
of trays or 36 linear feet of trays. A mailer must make a pallet for a 
particular presort destination when they have six layers of trays or 72 
linear feet of trays.
    On all Standard Mail letter trays, ``LTRS'' will change to ``LTR'' 
and ``CR-RTS'' will change to ``CR-RT.'' This change is necessary to 
allow more room for other information on the tray label. Mailers have 
until January 1, 2003, to comply with these labeling changes.
(7) Documentation
    Mailers will no longer be required to present a hard copy Form 
3553, Coding Accuracy Support System (CASS) Summary Report, with their 
mailings. Instead, mailers or mailer agents will continue to keep this 
documentation on file for 1 year from the date of mailing and make it 
available to the Postal Service on 24-hour notice.
    Software vendors and mailers should note that changes are proposed 
for manifest keyline rate codes (DMM P910.3.0) and MLOCR rate markings 
(DMM P960.3.0) to reflect the new Standard Mail rate categories.

6. Package Services

    There are four subclasses of Package Services: Parcel Post, Bound 
Printed Matter, Media Mail, and Library Mail. Each subclass is 
addressed separately in items 7 through 10.

7. Parcel Post

a. Parcel Post Rate Highlights
    Parcel Post rates will increase an average of 6.4%. The 
nonmachinable surcharge for Inter-BMC Parcel Post will increase from 
$2.00 to $2.75 per parcel. The Intra-BMC and DBMC nonmachinable 
surcharges will remain at their current levels: $1.35 for Intra-BMC 
parcels and $1.45 for DBMC parcels. The Parcel Post Origin BMC Presort 
and BMC Presort discounts will increase from $0.90 to $1.17 and $0.23 
to $0.28 per piece, respectively. The barcoded discount for qualifying 
Parcel Post (including Parcel Select) machinable parcels will remain at 
$0.03 per piece. The destination entry mailing fee will increase from 
$125.00 to $150.00. The Parcel Post pickup fee will increase from 
$10.25 to $12.50.
b. Parcel Post Rate Structure
    Three changes will be made. First, a separate rate will be 
available for parcels weighing less than 1-pound. Second, Parcel Select 
pieces will be eligible for no-fee electronic Delivery Confirmation. 
The final change will create a DSCF rate for nonmachinable parcels 
sorted to 3-digit ZIP Code prefixes and entered at destination SCFs. 
Nonmachinable DSCF Parcel Select pieces will be subject to a surcharge 
of $1.09 per parcel in addition to the applicable DSCF rate.
c. Parcel Post Mail Preparation Changes
    Except for a new 3-digit nonmachinable parcel preparation option 
added for DSCF rate mail, there will be no other changes to the 
preparation requirements for Parcel Post and Parcel Select.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights
    The Bound Printed Matter (BPM) rates will increase an average of 
9.0%. There are two major changes to BPM rates: separate rates for BPM 
flats and parcels, and a new POSTNET barcoded discount for single-piece 
rate and Presorted rate BPM flats. The parcel barcode discount for BPM 
single-piece and Presorted rate machinable parcels will remain at $0.03 
per piece. The destination entry mailing fee will increase from $125.00 
to $150.00.
b. Bound Printed Matter Rate Structure
    Rates for flat-size BPM will be lower than the rates for BPM 
parcels in all three rate categories (single-piece, Presorted, and 
carrier route) and in the three available destination entry rates (DDU, 
DSCF, and DBMC). A $0.03 discount will be available for single-piece 
and Presorted rate BPM flats

[[Page 18694]]

prepared with a POSTNET barcode. To qualify for the barcoded discount, 
BPM flats will be required to meet the standards in DMM C820 for flat 
sorting machine (FSM) 881 processing.
c. Bound Printed Matter Mail Preparation Changes
    BPM barcoded flats will be prepared using the standards in DMM 
M820.

9. Media Mail

a. Media Mail Rate Highlights
    Media Mail rates will increase an average of 4.0%. The mailing fee 
for Presorted Media Mail will increase from $125.00 to $150.00.
b. Media Mail Rate Structure
    There will be one fundamental change to the Media Mail rate 
structure. The 5-digit rate will be retained, but the BMC rate will be 
renamed the basic rate.
c. Media Mail Preparation Changes
    There will be three changes to the preparation requirements for 
Media Mail. First, Media Mail will no longer be sorted to the 5-digit 
and BMC levels. Media Mail will now be sorted to the 5-digit, 3-digit, 
ADC or BMC, and mixed ADC or mixed BMC levels, as appropriate. This 
adjusts the presort requirements for Media Mail to reflect current 
postal processing. Machinable parcels will continue to be presorted to 
BMCs using the new basic rate level.
    The second change eliminates the requirement for separate minimum 
volumes for each presort level and reduces the minimum volume 
requirement for a mailing from 500 to 300 pieces. To qualify for 
Presorted Media Mail rates, mailers will be required to have a minimum 
of 300 properly prepared and presorted pieces. Pieces in the mailing 
that meet 5-digit rate requirements will be eligible for the 5-digit 
rate. The remaining pieces in the mailing will be eligible for the 
basic rate.
    The last change reinstates the option to allow mailers to prepare 
sacks of Media Mail using a minimum of 1,000 cubic inches of mail.

10. Library Mail

a. Library Mail Rate Highlights
    Library Mail rates will increase an average of 3.3%. The mailing 
fee for Presorted Library Mail will increase from $125.00 to $150.00.
b. Library Mail Rate Structure
    There will be one fundamental change to the Library Mail rate 
structure. The 5-digit rate will be retained, but the BMC rate will be 
renamed the basic rate.
c. Library Mail Preparation Changes
    There will be three changes to the preparation requirements for 
Library Mail. First, Library Mail will no longer be sorted to the 5-
digit and BMC levels. Library Mail will now be sorted to the 5-digit, 
3-digit, ADC or BMC, and mixed ADC or mixed BMC levels, as appropriate. 
This adjusts the presort requirements for Library Mail to reflect 
current postal processing. Machinable parcels will continue to be 
presorted to BMCs using the new basic rate level.
    The second change eliminates the requirement for separate minimum 
volumes for each presort level and reduces the minimum volume 
requirement for a mailing from 500 to 300 pieces. To qualify for 
Presorted Library Mail, mailers will be required to have a minimum of 
300 properly prepared and Presorted pieces. Pieces in the mailing that 
meet the 5-digit rate requirements will be eligible for the 5-digit 
rate. The remaining pieces in the mailing will be eligible for the 
basic rate.
    The last change reinstates the option to allow mailers to prepare 
sacks of Library Mail using a minimum of 1,000 cubic inches of mail.

11. Special Services and Other Services

a. Special Services Highlights
(1) Bulk Parcel Return Service (DMM S924)
    The annual accounting fee for bulk parcel return service (BPRS) 
will increase from $375 to $475. The annual permit fee will increase 
from $125 to $150 and the per piece charge will increase from $1.62 to 
$1.80. See DMM R900.3.0.
(2) Business Reply Mail (DMM S922)
    The per piece charge for the high volume Qualified Business Reply 
Mail (QBRM) category with the quarterly fee will decrease from $0.01 to 
$0.008. The QBRM quarterly fee of $1,800 for that category will remain 
the same. The basic QBRM per piece charge for the category without the 
quarterly fee will increase from $0.05 to $0.06. The non-QBRM per piece 
fee with an advance deposit account will remain at $0.10. The annual 
permit fee for all business reply mail (BRM) will increase from $125 to 
$150. The monthly fee for bulk weight averaged nonletter-size BRM will 
increase from $600 to $750, while the per piece charge of $0.01 will 
remain the same. The annual accounting fee for advanced deposit 
accounts will increase from $375 to $475. The regular BRM per piece 
charge without an annual accounting fee will increase from $0.35 to 
$0.60 per piece. See DMM R900.4.0.
(3) Certificate of Mailing (DMM S914)
    Certificate of mailing fees will increase. For individual pieces, 
the original certificate will increase from $0.75 to $0.90, the firm 
mailing book (Form 3877) will increase from $0.25 to $0.30 for each 
piece listed, and the charge for a duplicate copy will increase from 
$0.75 to $0.90.
    For bulk pieces (Form 3606), fees for the first 1,000 pieces or 
fraction thereof will increase from $3.50 to $4.50. Each additional 
1,000 pieces or fraction thereof will increase from $0.40 to $0.50, and 
the charge for a duplicate copy will increase from $0.75 to $0.90. 
Additionally, mailpieces listed on Form 3877 and having postage paid 
with permit imprint will be permitted to pay the certificate of mailing 
fee using the permit imprint account. Under this option mailers will no 
longer be required to affix the fees to Form 3877. See DMM R900.6.0.
(4) Certified Mail (DMM S912)
    The certified mail fee will increase from $2.10 to $2.30. A service 
enhancement will allow mailers to access delivery information over the 
Internet at www.usps.com. See DMM R900.7.0.
(5) Collect on Delivery (DMM S921)
    There will be no change to the current collect on delivery (COD) 
fees. See DMM R900.8.0.
(6) Delivery Confirmation (DMM S918)
    Retail (manual) and electronic Delivery Confirmation options will 
be extended to First-Class Mail parcels. For Package Services, Delivery 
Confirmation will be restricted to parcels only and will no longer be 
available for flat-size mail. For First-Class Mail parcels, the fee 
will be $0.13 for the electronic option and $0.55 for the retail 
option. The fee for the retail option for Priority Mail will increase 
from $0.40 to $0.45. For Standard Mail, the fee for the electronic 
option will increase from $0.12 to $0.13. For Parcel Select, the 
electronic option will be included in postage. For all other Package 
Services, the fee will increase from $0.12 to $0.13 for the electronic 
option and from $0.50 to $0.55 for the retail option. See DMM R900.9.0.
    For the purposes of adding Delivery Confirmation to First-Class 
Mail or Package Services, a parcel will be defined as any piece that 
has an address side with sufficient surface area to fully display the 
delivery address, return address, postage, markings and endorsements, 
and Delivery Confirmation label. The parcel will be required to be in a 
box or, if not in a

[[Page 18695]]

box, will be required to be more than \3/4\-inch thick at its thickest 
point.
(7) Express Mail Insurance (DMM S500)
    Insurance coverage included with Express Mail service will be 
lowered from $500 to $100. Incremental fees will be applied at $1.00 
per each $100 of desired merchandise insurance coverage over $100. 
Document reconstruction maximum liability will decrease from $500 to 
$100. See DMM R900.11.0.
(8) Insurance (DMM S913)
    The fee for unnumbered insurance (value up to $50) with no insured 
number applied will increase from $1.10 to $1.30. The fee for numbered 
insurance service over $50 and up to $100 (insured number applied) will 
increase from $2.00 to $2.20. The incremental fee of $1.00 for each 
$100 in value over $100 and up to $5,000 will remain the same. See DMM 
R900.12.0.
(9) Merchandise Return Service (DMM S923)
    The annual accounting fee for merchandise return service will 
increase from $375 to $475. The annual permit fee will increase from 
$125 to $150. See DMM R900.14.0.
(10) Money Orders (DMM S020)
    There will be two classification changes for money orders. The 
first change will increase the maximum amount from $700 to $1,000 for 
both domestic and APO/FPO money orders. The second change will 
introduce a two-level fee structure for domestic money orders. The fee 
for amounts of $0.01 to $500 will be $0.90, and the fee for amounts of 
$500.01 to $1,000 will be $1.25. The inquiry fee will increase from 
$2.75 to $3.00. The $0.25 fee for APO/FPO money orders will remain the 
same. See DMM R900.16.0.
(11) Parcel Airlift (DMM S930)
    Parcel Airlift (PAL) fees will increase. For parcels weighing not 
more than 2 pounds, the fee will increase from $0.40 to $0.45. For 
parcels not more than 3 pounds, the fee will increase from $0.75 to 
$0.85. For parcels not more than 4 pounds, the fee will increase from 
$1.15 to $1.25. For parcels over 4 pounds but not more than 30 pounds, 
the fee will increase from $1.55 to $1.70. See DMM R900.17.0.
(12) Registered Mail (DMM S911)
    All registered mail fees will increase. The fee for registered mail 
with no declared value will increase from $7.25 to $7.50. The fee for 
registered mail valued between $0.01 and $100 will increase from $7.50 
to $8.00. The incremental fee for registered mail with insurance per 
declared value level will increase from $0.75 to $0.85. The handling 
charge per $1,000 in value or fraction thereof for items valued over 
$25,000 also will increase from $0.75 to $0.85. A service enhancement 
will allow mailers to access delivery information over the Internet at 
www.usps.com. See DMM R900.21.0
(13) Restricted Delivery (DMM S916)
    The fee for restricted delivery will increase from $3.20 to $3.50. 
See DMM R900.22.0.
(14) Return Receipt (DMM S915)
    The fee for regular return receipt service will increase from $1.50 
to $1.75. The fee for return receipt after mailing will decrease from 
$3.50 to $3.25. See DMM R900.23.0.
(15) Return Receipt for Merchandise (DMM S917)
    The fee for return receipt for merchandise will increase from $2.35 
to $3.00. See DMM R900.24.0.
(16) Signature Confirmation (DMM S919)
    Retail (manual) and electronic Signature Confirmation options will 
be extended to First-Class Mail parcels. For Package Services, 
Signature Confirmation will be restricted to parcels only and will no 
longer be available for flat-size mail. The fees will increase from 
$1.25 to $1.30 for the electronic option and from $1.75 to $1.80 for 
the retail option.
    For the purposes of adding Signature Confirmation to First-Class 
Mail or Packages Services, a parcel will be defined as any piece that 
has an address side with sufficient surface area to fully display the 
delivery address, return address, postage, markings and endorsements, 
and Signature Confirmation label. The parcel will be required to be in 
a box or, if not in a box, will be required to be more than \3/4\-inch 
thick at its thickest point. See DMM R900.26.0.
(17) Special Handling (DMM S930)
The fees for special handling will increase from $5.40 to $5.95 for 
pieces weighing up to 10 pounds and from $7.50 to $8.25 for pieces 
weighing over 10 pounds. See DMM R900.27.0.
b. Other Services Highlights
(1) Address Correction Service (DMM F030)
    The fee for manual address correction service (ACS) notices will 
increase from $0.60 to $0.70. The fee for automated ACS will remain the 
same at $0.20. See DMM R900.1.0.
(2) Address Sequencing Service (DMM A920)
    The fee for carrier sequencing of address cards service will 
increase from $0.25 to $0.30 per card. See DMM R900.2.0.
(3) Caller Service (DMM D920)
    The caller service fee for each separation provided per semiannual 
period will increase from $375 to $412. The fee for each reserved call 
number per calendar year will increase from $30 to $32. See DMM 
R900.5.0.
(4) Mailing List Services (DMM A910)
    The charge for correction of mailing lists will increase from $0.25 
to $0.30 per correction. The minimum per list charge also will increase 
from $7.50 to $9.00 per list. The charge for sortation of mailing lists 
on cards into groups labeled by 5-digit ZIP Code will increase from $73 
to $100. The charge for address changes for election boards will 
increase from $0.23 to $0.27. See DMM R900.13.0.
(5) Meter Service (DMM P030)
    The fee for on-site meter service (per employee, per visit) will 
increase from $31 to $35. The fee for meter resetting and/or 
examination will increase from $4.00 to $5.00 per meter. The $4.00 fee 
for checking in or out of service (per meter) will remain the same. See 
DMM R900.15.0.
(6) Permit Imprint (DMM P040)
    The permit imprint application fee will increase from $125 to $150.
(7) Pickup Service (DMM D010)
    The fee for pickup service, available for Express Mail, Priority 
Mail, and Parcel Post, will increase from $10.25 to $12.50 (per 
pickup). See DMM R900.18.0.
(8) Post Office Box Service (DMM D910)
    Overall, post office (PO) box fees will increase. A new PO box fee 
category will be introduced for PO box service in the lowest-cost 
cities and highest-cost rural areas. This new fee group will provide a 
bridge to eventually move high-cost and low-cost ZIP Codes toward more 
appropriate fee assignments. PO box key duplication or replacement 
(after first two keys) will increase from $4.00 to $4.40 each. PO box 
lock replacement will increase from $10 to $11.
    There will be no change to the no-fee PO box service (Group E). See 
DMM R900.20.0.

[[Page 18696]]

(9) Shipper Paid Forwarding (DMM F010)
    The accounting fee will increase from $375 to $475. See DMM 
R900.25.0.
(10) Stamped Cards and Stamped Envelopes
    The fee for stamped cards will remain the same. Special stamped 
envelopes (i.e., those with holograms or patch-in stamps) are no longer 
offered. The fees for the other types of available stamped envelopes 
will remain the same.

Part C--Summary of Changes to the Domestic Mail Manual

    The following information details the R2001-1 changes organized by 
DMM module. This information is intended as an overview only and should 
not be viewed as defining every DMM change adopted in this final rule. 
The actual DMM changes appear in this notice after Part C.

A  Addressing

    A010 will be amended to remove references to upgradable mail and to 
include a preferred location for addresses on letter-size pieces.
    The title of A800 will be changed to show the standards apply to 
all automation-compatible mail, not just mail claimed at automation 
rates.
    A950 will be revised to clarify that the mailer's signature on a 
postage statement certifies the mail meets the requirements for the 
rates claimed and to change the requirements for filing Form 3553, 
Coding Accuracy Support System (CASS) Summary Report. Mailers will no 
longer be required to submit Form 3553 with each mailing. They will 
have to retain the form on file for 1 year from the date of mailing and 
make it available to the Postal Service on 24-hour notice.

C  Characteristics and Content

    C010 will be amended to show that Standard Mail Enhanced Carrier 
Route (ECR) letters are subject to the standards for mailpiece 
dimensions and to remove information about the First-Class Mail 
nonstandard surcharge. C050 will be amended to add the nonmachinable 
characteristics for letters. Exhibit C050.2.0 will be renumbered as 
Exhibit C050.1.0.
    C100.2.7 will be amended to implement the change to the Domestic 
Mail Classification Schedule (DMCS) for pieces eligible for the First-
Class Mail card rates. C100.4.0 will be revised to reflect changes to 
the nonmachinable surcharge (formerly the nonstandard surcharge) for 
some First-Class Mail letters and flats.
    C700 will be amended to note that mailpieces meeting any of the 
characteristics listed in C700.2.0 and that are mailed at the DSCF 
Parcel Select rate will be subject to the $1.09 nonmachinable surcharge 
listed in R700.1.6.
    C810 will be amended to remove references to upgradable First-Class 
Mail and Standard Mail, to increase the weight limit for Standard Mail 
automation and ECR letters to 3.5 ounces, and to clarify that signing a 
postage statement certifies the mail meets the requirements for the 
rates claimed.
    C820 will be amended to add a weight limit for Bound Printed Matter 
flats claimed at automation flat rates.
    C830 will be deleted. C830 contains standards for upgradable mail, 
including address placement, OCR read area, fonts, and reflectance. 
Effective June 30, 2002, the upgradable preparation for letters will be 
replaced with a machinable preparation; the machinable preparation has 
no requirements for address placement, OCR read area, etc.
    C840 will be amended to remove references to upgradable mail.

D  Deposit, Collection, and Delivery

    D210.3.4 will be amended to reflect the change that the destination 
sectional center facility (DSCF) rate will apply to eligible mail 
entered at the DSCF under exceptional dispatch. D210.4.0 will be 
revised to show that the DSCF rate will not apply to mail entered at 
airport mail facilities (AMFs).
    The provisions for Periodicals contingency entries will be deleted 
in D230.2.2 and 4.6.
    D500 will be amended to include several additional provisions that 
affect postage refund requests for Express Mail when the service 
guarantee is not met.

E  Eligibility

E100
    E110.3.0 will be amended to clarify the eligibility of pieces 
mailed at First-Class Mail card rates.
    E120.2.2 will be amended to change the current Priority Mail flat 
rate from the 2-pound rate to a 1-pound rate, regardless of the weight 
of the material placed in the flat-rate envelope. E120.2.4 reflects 
changes to the postage for keys and identification devices. When they 
weigh more than 13 ounces but not more than 1 pound, they will be 
returned at the 1-pound Priority Mail rate plus the fee shown in 
R100.10.0. Keys and identification devices that weigh more than 1 pound 
but not more than 2 pounds will be charged the 2-pound Priority Mail 
rate for zone 4 plus the fee in R100.10.0.
    E130 will be amended to show that the nonmachinable surcharge will 
apply to keys and identification devices, certain letter-size and flat-
size pieces mailed at single-piece and Presorted rates, and all pieces 
where the mailer chooses the ``manual only'' (do not automate) 
preparation option. It also will be amended to clarify that signing a 
postage statement certifies the mail meets the requirements for the 
rates claimed.
    E140 will be amended to reorganize the information about rate 
application into two separate sections: one for cards and letter-size 
mail (2.0) and one for flat-size mail (3.0). E140.2.0, Rate Application 
for Cards and Letters, will be amended to replace the basic rate with 
the new AADC and mixed AADC rates. E140.3.0, Rate Application for 
Flats, will be amended to replace the basic rate with the new ADC and 
mixed ADC rates and to clarify the definition of a piece that is 
subject to the nonmachinable surcharge. E140 will be amended to clarify 
that signing a postage statement certifies the mail meets the 
requirements for the rates claimed.
E200
    E217.1.0 and 3.0 will be amended to reflect references to the new 
destination area distribution center (DADC) rates and discounts for 
Outside-County and Outside-County Science-of-Agriculture rates. 
E217.5.0 will be restructured for clarity and amended to include 
standards for the new per piece pallet and per piece destination entry 
pallet discounts.
    The standards for combining multiple publications or editions in 
E220.3.0 and E230.4.0 will be consolidated into new M230. E220 and E240 
will be amended to clarify that signing a postage statement certifies 
the mail meets the requirements for the rates claimed.
    E250 is revised in its entirety to clarify standards for all 
destination entry Periodicals mailings; to include the new destination 
area distribution center (DADC) entry rates and discounts; and to 
reflect that for rate eligibility DSCF pieces must be deposited at the 
DSCF or a USPS-designated facility. E250.1.1 clarifies that for rate 
eligibility, an individual package, tray, sack, or pallet may contain 
pieces claimed at different destination entry rates and discounts.
    New E260 (former G094) will describe the standards for the 
Periodicals Ride-Along classification and rate, which will become a 
permanent classification. All of G094 will be moved except for 2.0

[[Page 18697]]

and 3.0. Former 2.0, which contains the rate information, will appear 
as part of R200. Former 3.0 will be deleted, as publishers will no 
longer be required to submit additional documentation with Ride-Along 
mailings.
E500
    E500 will be amended to change the current 2-pound Express Mail 
flat rate to the new \1/2\-pound rate regardless of the weight of the 
material placed in the flat-rate envelope.
E600
    E610.8.0 will be amended to remove references to upgradable 
Standard Mail.
    E620 will be amended to remove references to upgradable mail and to 
show that the nonmachinable surcharge may apply to letter-size pieces 
that weigh 3.3 ounces or less and to all pieces where the mailer 
chooses the ``manual only'' (do not automate) option. E620.1.2 is 
amended to remove the requirement that residual volumes must appear on 
the same postage statement.
    E630 will be reorganized for clarity. Standards will be added to 
show that letter-size pieces mailed at saturation and high density 
letter rates must be automation-compatible and must have a delivery 
point barcode. New language will be added to explain the discount for 
automation-compatible pieces that weigh between 3.3 and 3.5 ounces.
    E640 will be amended to replace the basic automation letter rate 
with the new AADC and mixed AADC rates and to add the discount for 
automation letters that weigh between 3.3 and 3.5 ounces. E640.2.0 will 
be amended to add the discount for ECR basic automation letters that 
weigh between 3.3 and 3.5 ounces.
    E620 and E640 will be amended to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed.
E700
    E712.1.1b will be revised to add a weight limit for BPM flats 
claiming the barcoded discount. E712.1.4, which excluded BPM flats from 
eligibility to receive an automation rate, will be removed. E712.2.0 
will be amended to add a new standard for BPM automation flats. 
E712.2.0e will be added to include a barcoded discount for automation 
flats. E712.3.0 will be amended to clarify that the mailer's signature 
on the postage statement certifies the mail meets the requirements for 
the rates claimed.
    E713 and E714 will be revised in their entirety to reflect the 
format used for BPM in E712. E713 and E714 will be amended to change 
references from ``BMC rate'' to ``basic rate'' and from ``500 pieces'' 
to ``300 pieces.''
    E751.1.1 will be amended to add provisions to require mail on 
pallets for 3-digit ZIP Code prefixes to be entered at the SCF. 
E751.1.4a will be amended to clarify that nonmachinable parcels sorted 
to 3-digit ZIP Code prefixes must be entered at a designated SCF. In 
E751.2.2c, d, and e, references will be added to allow the preparation 
of ``3-digit sacks'' and ``3-digit pallets.'' E751.5.0 and E753 will be 
amended to change the references from ``BMC rate'' to ``basic rate.''

F  Forwarding and Related Services

    F010.4.0 will be amended to remove references to nonstandard mail. 
F010.5.2 will be amended to show that the nonmachinable surcharge can 
be charged on Periodicals returned at First-Class Mail single-piece 
rates. F010.5.3 will be amended to show that the First-Class Mail 
single-piece nonmachinable surcharge is included in the calculation of 
the weighted fee for returned pieces and is charged on some returned 
Standard Mail pieces. F010.6.0 will be amended to include these same 
changes.
    F030.1.6 will be amended to clarify the circumstances under which 
address notices are not provided by the Postal Service.

G  General Information

    G091.4.0 will be revised to clarify that First-Class Mail 
automation letter-size pieces and parcels, First-Class Mail automation 
cards, Standard Mail automation letter-size pieces, and Standard Mail 
nonprofit automation letter-size pieces using NetPost Mailing Online 
will be eligible for the mixed AADC rate. First-Class Mail automation 
flat-size pieces will be eligible for the mixed ADC rate. Flat-size 
pieces at the regular and nonprofit Standard Mail automation rates will 
be eligible for the basic rates. First-Class Mail that is not eligible 
for any automation rate will be subject to the applicable single-piece 
rates.
    The Ride-Along classification will be made a permanent 
classification. Therefore, the standards currently in G094 will be 
relocated to new E260.

L  Labeling Lists

    The titles and summaries, as appropriate, of labeling lists L001, 
L800, L802, and L803 will be amended to reflect new mail preparation 
options.

    Note: New labeling list L006 and the accompanying 5-digit metro 
pallet sort for packages of flats took effect on March 31, 2002. 
Notice of this change was published in Postal Bulletin 22066 (12-27-
01).

M  Mail Preparation and Sortation

M000
    M011.1.3 will be amended to show that a full letter tray is defined 
as one that is between 75% and 100% full. M011.1.4 will be amended to 
remove references to upgradable mailings, to show that machinable and 
nonmachinable pieces cannot be part of the same mailing, and to show 
that ECR letter rate pieces cannot be part of the same mailing as 
nonletter rate pieces. M012.2.0 will be revised to update information 
about multi-line optical character reader (MLOCR) markings. M012.3.3 
will be revised to include additional rate markings for BPM Presorted 
automation flats and BPM carrier route flats. M012.4.5 will be deleted 
to remove references to upgradable mail.
    The summary for M020 will be amended to include references to Media 
Mail and Library Mail. M020.1.6 will be amended to include Media Mail 
and Library Mail in the package size requirements. In addition, the 
maximum weight for packages in sacks will be 20 pounds unless otherwise 
noted, and packages of BPM automation flats must meet the preparation 
requirements in M820. M020.2.0 will be amended to include additional 
standards for packaging Media Mail and Library Mail. M020.2.1 will be 
amended to remove references to the upgradable preparation for First-
Class Mail and Standard Mail and to show that nonmachinable and 
``manual only'' pieces must be packaged. M020.2.2 will be amended to 
require that Media Mail and Library Mail pieces meet specific weight 
limits when placed in sacks or on pallets.
    The container labeling requirements in M031.5.0 will be amended to 
revise the Line 2 codes for ``carrier routes,'' ``letters,'' and 
``machinable'' and to add a new Line 2 code for ``manual.'' Exhibit 
M032.1.3a will be amended to change the content identifier number (CIN) 
codes for the new machinable and nonmachinable preparation for First-
Class Mail and Standard Mail letter-size pieces. The exhibit also will 
be amended to add new CIN codes for Standard Mail ECR letters and 
designate CIN codes for certain Package Services flat-size pieces. 
M033.2.0 will be amended to clarify standards for filling letter trays.
    M041.5.0 will be amended to show that the minimum volume for letter 
trays on pallets is measured in linear feet, not by the number of 
layers of tray on the pallet. M041.5.5 will be amended to clarify the 
maximum load of a pallet. M045.3.2 will be amended to show that pallets 
with carrier route mail must

[[Page 18698]]

show whether the mail is barcoded, machinable, or manual. M045.3.3 
through 3.5 will show revised titles that will additionally encompass 
Media Mail and Library Mail. M045.6.0 will be removed and included in 
the aforementioned sections. M050.4.1 will be amended to show that 
signing a postage statement certifies the mail meets the requirements 
for the rates claimed.
M100
    M130 will be substantially revised to show the packaging, traying, 
and labeling standards for machinable, nonmachinable, and ``manual 
only'' letter-size mail.
M200
    To reduce redundancy, the standards for combining multiple 
publications or editions in M210.6.0 and M220.6.0 will be consolidated 
and relocated in new M230.
M600
    M610 will be substantially revised to show the packaging, traying, 
and labeling standards for machinable, nonmachinable, and ``manual 
only'' letter-size mail. M630 will be revised to show the new Line 2 
labeling for trays of ECR letter-size pieces.
M700
    M710.2.1 will be revised to add provisions for a 3-digit sort level 
for nonmachinable parcels claiming DSCF rates.
    M730 and M740 will be amended to change references from ``BMC 
rate'' to ``basic rate'' and to include separate preparation standards 
for Media Mail and Library Mail flats, irregular parcels, and 
machinable parcels. The option to prepare sacks based on a minimum of 
1,000 cubic inches of mail is restored for both Media Mail and Library 
Mail and is reflected in M730 and M740.
M800
    M810.1.0 will be amended to replace references to the automation 
basic rate for letter-size pieces with the new AADC and mixed AADC 
rates. M810.2.0 will be amended to show the new Line 2 labeling format 
for First-Class Mail and Standard Mail carrier route automation 
letters.
    M820.1.0 will be amended to replace references to the automation 
basic rate for flat-size pieces with the new ADC and mixed ADC rates. 
M820.6.1 will be revised to provide packaging and sacking standards for 
flat-size pieces eligible for the Bound Printed Matter automation 
rates.

P  Postage and Payment Methods

P000
    P011.1.0 will be amended to reflect that the nonstandard surcharge 
will be replaced with the new nonmachinable surcharge. P012.2.0 will be 
amended to require standardized documentation for Bound Printed Matter 
flats entered at automation rates. P012.2.0 will be amended to add new 
rate level abbreviations for the AADC, ADC, mixed AADC, and mixed ADC 
rates. P012.3.0 will be amended to reflect references to the new DADC 
rate for Periodicals.
    P012.4.0 will be amended to clarify the standards for facsimile 
postage statements. P013.1.0 is amended to clarify the rate calculation 
and computation standards. P013.2.0 will be amended to reflect the new 
zoning of Priority Mail rates affecting all pieces over 1 pound and up 
to 5 pounds. This section will also be amended to reflect that each 
addressed Express Mail or Priority Mail flat-rate envelope will be 
charged the Express Mail rate for 1/2-pound or the Priority Mail rate 
for 1 pound, as applicable, regardless of the actual weight.
    P013.8.0 will be amended to show how to calculate postage for 
Standard Mail automation rate letter-size pieces and ECR automation-
compatible letter-size pieces that weigh more than 3.3 ounces.
    P014.5.0 will be amended to expand the circumstances under which 
the Postal Service may deny Express Mail postage refund requests when 
the service guarantee is not met.
    P021.3.1 will be amended to note the availability of stamped cards.
P100
    P100.4.0 and 5.0 will be amended to change ``nonstandard 
surcharge'' to ``nonmachinable surcharge.''
    P200
    P200.1.5 will be amended to include requirements for separating 
DADC entry pieces if the mailing is not presented with mailing 
documentation at the time of postal verification. New P200.1.8 will 
contain the standards relocated from P200.2.4 for the waiving of the 
nonadvertising rates.
P600
    P600.2.0 will be amended to include standards for the new 
nonmachinable surcharge for Standard Mail and to add calculations for 
automation and ECR heavy letters.
P900
    P910 will be amended to add new rate category abbreviations for the 
AADC, ADC, mixed AADC, and mixed ADC rates for First-Class Mail and 
Standard Mail.
    P950 will be revised in its entirety to clarify the standards that 
apply to plant-verified drop shipment (PVDS).
    P960 will be amended to clarify when MLOCR markings must appear on 
mailpieces and to add new markings for the AADC, ADC, mixed AADC, and 
mixed ADC rates for First-Class Mail and Standard Mail.

R  Rates and Fees

    The entire R Module will be revised to reflect the new rates and 
fees for all classes of mail and special services.

S  Special Services

    S020 will be amended to increase the maximum amount of a single 
money order from $700 to $1,000.
    S010 and S500 will be amended to reduce the indemnity included in 
the base price of Express Mail service from $500 to $100.
    S911 and S912 will be amended to include the new service 
enhancement for registered mail and certified mail. This enhancement 
will allow mailers to obtain delivery information over the Internet at 
www.usps.com by entering the article number shown on the mailing 
receipt.
    S918 and S919 will be amended to extend Delivery Confirmation and 
Signature Confirmation to First-Class Mail parcels, and also to limit 
this service to parcels only in the Package Services mail class. S918 
and S919 will also specify that for the purposes of adding Delivery 
Confirmation or Signature Confirmation service to First-Class Mail or 
Package Services, a parcel will be required to meet the definition in 
C100.5.0 or C700.1.0, as appropriate.

List of Subjects in 39 CFR Part 111

    Postal Service.


    For the reasons discussed above, 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 (CFR). See 
39 CFR part 111.

PART 111--[AMENDED]

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

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


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

[[Page 18699]]

A  Addressing

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *
[Renumber 1.3 through 1.6 as 1.4 through 1.7, respectively. Add new 1.3 
to show the preferred location for an address on a letter-size piece 
(this information has been pulled out of C830.1.1). Also renumber 
Exhibit A010.4.5 as A010.1.3 and rename it as ``Recommended Address 
Placement.'']

1.3  Recommended Placement

    On a letter-size piece, the recommended address placement is within 
the optical character reader (OCR) read area, which is a space on the 
address side of the mailpiece defined by these boundaries (see Exhibit 
1.3):
    a. Left: \1/2\ inch from the left edge of the piece.
    b. Right: \1/2\ inch from the right edge of the piece.
    c. Top: 2-\3/4\ inches from the bottom edge of the piece.
    d. Bottom: \ 5/8\ inch from the bottom edge of the piece.

[In renumbered 1.4, amend the title and content of to replace 
``nonstandard'' with ``nonmachinable.'' No other changes to the text.]
* * * * *
2.0  ZIP CODE
* * * * *
[Amend the title and text of 2.3 to remove obsolete information about 
the DPBC numeric equivalent.]

2.3  Numeric DPBC

    A numeric equivalent of a delivery point barcode (DPBC) consists of 
five digits followed by a hyphen and seven digits as specified in C840. 
The numeric equivalent is formed by adding three digits directly after 
the ZIP+4 code.

[Remove 2.4, Class and Rate Standards.]
* * * * *
4.0  RETURN ADDRESS
* * * * *
[Remove 4.5, Upgradable Mail.]
* * * * *
[Amend the title of A800 to show that the unit contains standards that 
apply to any barcoded pieces, not just mail claimed at automation 
rates.]

A800  Addressing for Barcoding

1.0  ACCURACY
* * * * *

1.3  Numeric DPBC

[Amend 1.3 to remove obsolete information about the DPBC numeric 
equivalent.]
    A numeric equivalent of the delivery point barcode (DPBC) consists 
of five digits followed by a hyphen and seven digits as specified in 
C840. The numeric equivalent is formed by adding three digits directly 
after the ZIP+4 code.
* * * * *

A950  Coding Accuracy Support System (CASS)

* * * * *
3.0  DATE OF ADDRESS MATCHING AND CODING

3.1  Update Standards

[Amend 3.1 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    Unless Z4CHANGE is used, all automation and carrier route mailings 
bearing addresses coded by any AIS product must be coded with current 
CASS-certified software and the current USPS database. Coding must be 
done within 90 days before the mailing date for all carrier route 
mailings and within 180 days before the mailing date for all non-
carrier route automation rate mailings. All AIS products may be used 
immediately on release. New product releases must be included in 
address matching systems no later than 45 days after the release date. 
The overlap in dates for product use allows mailers adequate time to 
install the new data files and test their systems. Mailers are expected 
to update their systems with the latest data files as soon as 
practicable and need not wait until the ``last permissible use'' date 
to include the new information in their address matching systems. The 
mailer's signature on the postage statement certifies that this 
standard has been met when the corresponding mail is presented to the 
USPS. The ``current USPS database'' product cycle is defined by the 
following matrix.
* * * * *
5.0  DOCUMENTATION

5.1 Form 3553

[Amend 5.1 to show that mailers must complete and retain Form 3553 and 
annotate the postage statement with the date that address matching is 
performed, and to show that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed.]
    Unless excepted by standard, the mailer must complete a Form 3553 
for each mailing claimed at all automation rates and all carrier route 
rates. A computer-generated facsimile may be used if it contains the 
required data elements in a format similar to the USPS form. The data 
recorded on Form 3553 must refer only to the address list used to 
produce the mailing with which it is presented. The postage statement 
must be annotated in the block(s) provided to reflect the date when 
address matching and coding were performed. When a mailing is produced 
using multiple lists, the mailer must show the earliest (oldest) date 
of address matching and coding (this information is shown on Form 3553, 
Section B2). The mailer certifies compliance with this standard when 
signing the corresponding postage statement.

5.2  Retention Period

[Amend 5.2 to show that Form 3553 does not have to be submitted with 
the mailing, but must be retained by the mailer or mailer's agent for 1 
year.]
    Form 3553 and other documentation must be retained by the mailer or 
the mailer's agent for 1 year from the date of mailing and be made 
available to the USPS on 24-hour notice.
* * * * *

5.5  Using a Single List

[Amend 5.5 by adding retention requirements to read as follows:]
    When a mailing is produced using all or part of a single address 
list, the mailer must retain one Form 3553 and other required 
documentation reflecting the summary output information for the entire 
list, as obtained when the list was coded. When the same address list 
is used for other mailings within 180 days of the date it was matched 
and coded, a copy of the Form 3553 must be retained with the 
documentation for each mailing.

5.6  Using Multiple Lists

[Amend 5.6 by adding retention requirements to read as follows:]
    When a mailing is produced using multiple address lists, the mailer 
must retain a consolidated Form 3553 summarizing the individual summary 
output and/or facsimile Forms 3553 for each list used (and other 
required documentation). As an alternative, the mailer may combine the 
addresses selected from the multiple lists into a single new list, 
reprocess the addresses using CASS-certified address matching software, 
and retain one Form 3553 for the summary output generated by that 
process. [Remove current 5.7, redesignate 5.8 as 5.7, and revise to 
read as follows:]

[[Page 18700]]

5.7  Using CASS Certificate

    If the name of the CASS-certified company entered on Form 3553 does 
not appear on the list published by the USPS, a copy of the CASS 
certificate for the software used also must be retained by the mailer 
with the documentation.
* * * * *

C  Characteristics and Content

C000  General Information

C010 General Mailability Standards

1.0  MINIMUM AND MAXIMUM DIMENSIONS
* * * * *

1.3  Length and Height

[Delete item b and renumber current item c as item b. There are no 
other changes to the text. Standard Mail Enhanced Carrier Route pieces 
will be subject to the standards pertaining to length and height.]
* * * * *
[Remove 1.6, Nonstandard Surcharge.]
* * * * *
6.0  SPECIAL MAILING ENVELOPES

6.1  Window Envelope

[Amend 6.1 to remove references to upgradable mail:]
    Any window envelope used for letter-size or flat-size mail must 
meet the following standards and, for automation-compatible mail, the 
physical standards in C800:
* * * * *

C020  Restricted or Nonmailable Articles and Substances

* * * * *

C024  Other Restricted or Nonmailable Matter

* * * * *
[Delete 18.0, Odd-Shaped Items in Letter-Size Mailpieces. Renumber 19.0 
and 20.0 as 18.0 and 19.0, respectively.]
* * * * *

C050 Mail Processing Categories

1.0  BASIC INFORMATION
[Amend 1.0 to add a reference to new Exhibit 1.0 (redesignated Exhibit 
2.0).]
    Every mailpiece is assigned to one of the mail processing 
categories in the following sections. These categories are based on the 
physical dimensions of the piece, regardless of the placement 
(orientation) of the delivery address on the piece. Exhibit 1.0 shows 
the minimum and maximum dimensions for some mail processing categories.

[Redesignate Exhibit 2.0, Mail Dimensions, as Exhibit 1.0.]
[Amend section 2.0 to add the characteristics for nonmachinable letters 
and to clarify the requirements for automation letters to read as 
follows:]
2.0  LETTER-SIZE MAIL

2.1 Minimum and Maximum Size

    Letter-size mail is:
    a. Not less than 5 inches long, 3\1/2\ inches high, and 0.007-inch 
thick.
    b. Not more than 11\1/2\ inches long, 6\1/8\ inches high, and \1/
4\-inch thick.

2.2  Nonmachinable Criteria

    A letter-size piece is nonmachinable if it has one or more of the 
following characteristics (see C010.1.1 for how to determine the 
length, height, top, bottom, and sides of a mailpiece):
    a. Has an aspect ratio (length divided by height) of less than 1.3 
or more than 2.5.
    b. Is polybagged, polywrapped, or enclosed in any plastic material.
    c. Has clasps, strings, buttons, or similar closure devices.
    d. Contains items such as pens, pencils, or loose keys or coins 
that cause the thickness of the mailpiece to be uneven.
    e. Is too rigid (does not bend easily when subjected to a transport 
belt tension of 40 pounds around an 11-inch diameter turn).
    f. For pieces more than 4\1/4\ inches high or 6 inches long, the 
thickness is less than 0.009 inch.
    g. Has a delivery address parallel to the shorter dimension of the 
mailpiece.
    h. For folded self-mailers, the folded edge is perpendicular to the 
address, regardless of the use of tabs, wafer seals, or other 
fasteners.
    i. For booklet-type pieces, the bound edge (spine) is the shorter 
dimension of the piece or is at the top, regardless of the use of tabs, 
wafer seals, or other fasteners.

2.3  Automation Rates

    Letters and cards mailed at automation rates must meet the 
standards in C810.
* * * * *

C100  First-Class Mail

* * * * *
2.0  CARDS CLAIMED AT CARD RATES
[Amend 2.7 to read as follows:]

2.7  Tearing Guides

    A card may have perforations as long as they do not eliminate or 
interfere with any address element, postage, or postal markings and do 
not compromise the physical integrity of the card.
* * * * *
[Amend the title and content of 4.0 to reflect the new nonmachinable 
surcharge for some First-Class Mail letters and flats to read as 
follows:]
4.0  NONMACHINABLE PIECES
    Letter-size pieces that weigh 1 ounce or less and meet one or more 
of the nonmachinable characteristics in C050.2.2 may be subject to the 
nonmachinable surcharge (see E130 and E140). Nonletters (flats and 
parcels) that weigh 1 ounce or less are subject to the nonmachinable 
surcharge if any one of the following applies (see C010.1.1 for how to 
determine the length and height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5. [Redesignate section 5.0, Facing Identification Mark 
(FIM), as 6.0. Add new 5.0, Parcels, to read as follows:]
5.0  PARCELS
    For the purposes of adding Delivery Confirmation or Signature 
Confirmation, a First-Class Mail parcel is defined as any piece that:
    a. Has an address side with enough surface area to fit the delivery 
address, return address, postage, markings and endorsements, and 
special service label; and,
    b. Is in a box or, if not in a box, is more than \3/4\-inch thick 
at its thickest point.
* * * * *

C200  Periodicals

Summary

[Revise the summary in C200 to read as follows:]
    C200 describes permissible mailpiece components (e.g., enclosures, 
attachments, and supplements), impermissible or prohibited components, 
and mailpiece construction.
* * * * *

C600  Standard Mail

1.0  DIMENSIONS

1.1  Basic Standards

    These standards apply to Standard Mail:
* * * * *
[Redesignate items 1.1c and 1.1d as items 1.1d and 1.1e, respectively. 
Redesignate Exhibit 1.1d as Exhibit 1.1e. Add new item 1.1c to require 
that Enhanced Carrier Route letters must meet the physical standards 
for

[[Page 18701]]

automation-compatible mail in C810 and barcode readability in C840.]
    c. ECR pieces mailed at high-density and saturation letter rates 
must meet the standards for automation-compatible mail in C810 and 
barcoding in C840.
* * * * *
[Redesignate 3.0, Postal Inspection, and 4.0, Enclosures, as 4.0 and 
5.0, respectively. Add new 3.0, Nonmachinable Pieces, to reflect the 
new nonmachinable surcharge for some Standard Mail letters to read as 
follows:]
3.0  NONMACHINABLE PIECES
    Letter-size pieces that weigh 3.3 ounces or less and meet one or 
more of the nonmachinable characteristics in C050.2.2 may be subject to 
the nonmachinable surcharge (see E620).
* * * * *

C700  Package Services

1.0  PACKAGE SERVICES
* * * * *
[insert new item 1.0h to read as follows:]
    h. For the purposes of adding Delivery Confirmation or Signature 
Confirmation, a Package Services parcel is defined as any piece that:
    (1) Has an address side with enough surface area to fit the 
delivery address, return address, postage, markings and endorsements, 
and special service label; and,
    (2) Is in a box or, if not in a box, is more than \3/4\-inch thick 
at its thickest point.
* * * * *
[Amend the title of 2.0 to read as follows:]
2.0  NONMACHINABLE SURCHARGE
[Amend the first sentence of 2.0 to read as follows:]
    Mailpieces described in this section that are mailed at the Inter-
BMC/ASF Parcel Post, Intra-BMC/ASF Parcel Post, DSCF Parcel Select, or 
DBMC Parcel Select rates are subject to the applicable nonmachinable 
surcharge in R700 unless the applicable special handling fee is paid.* 
* *
* * * * *
[Amend the title of C800 by adding ``Machinable'' to read as follows:]

C800  Automation-Compatible and Machinable Mail

C810  Letters and Cards

1.0  BASIC STANDARDS
[Amend 1.0 to show that some ECR letters must meet the standards for 
automation-compatible mail in this unit.]
    Letters and cards claimed at automation rates and at some Standard 
Mail Enhanced Carrier Route rates must meet the standards in 2.0 
through 8.0. Pieces claimed at First-Class Mail automation card rates 
also must meet the standards in C100. Unless prepared under 7.2 through 
7.4, each mailpiece must be prepared either as a sealed envelope (the 
preferred method) or, if unenveloped, must be sealed or glued on all 
four sides.
2.0  DIMENSIONS
* * * * *

2.4  Maximum Weight

[Amend 2.4 to replace the weight limit for upgradable letters with the 
weight limit for machinable letters, to raise the weight limit for 
Standard Mail automation heavy letters and ECR heavy letters to 3.5 
ounces, and to add a weight limit for ECR high density and saturation 
letters.]
    Maximum weight limits are as follows:
    a. First-Class Mail:
    (1) Machinable Presorted: 3.3 ounces (0.2063 pound).
    (2) Automation (see 7.5 for pieces heavier than 3 ounces): 3.3 
ounces (0.2063 pound).
    b. Periodicals automation (see 7.5 for pieces heavier than 3 
ounces): 3.3 ounces (0.2063 pound).
    c. Standard Mail:
    (1) Machinable Presorted: 3.3 ounces (0.2063 pound).
    (2) Automation (see 7.5 for pieces heavier than 3 ounces): 3.5 
ounces (0.2188 pound).
    (3) Enhanced Carrier Route high density and saturation and 
automation carrier route (see 7.5 for pieces heavier than 3 ounces): 
3.5 ounces (0.2188 pound).
* * * * *
8.0  ENCLOSED REPLY CARDS AND ENVELOPES

8.1 Basic Standard

Amend the first paragraph of 8.1 to clarify that signing a postage 
statement certifies that the mail meets the requirements for the rates 
claimed to read as follows:]
    All letter-size reply cards and envelopes (business reply mail 
(BRM), courtesy reply mail (CRM), and meter reply mail (MRM)) provided 
as enclosures in automation First-Class Mail, Periodicals, and Standard 
Mail and addressed for return to a domestic delivery address must meet 
the applicable standards for automation-compatible mail in C810. The 
mailer's signature on the postage statement certifies that this 
standard, and the standards listed below, have been met when the 
corresponding mail is presented to the USPS:
* * * * *

C820  Flats

* * * * *
2.0  DIMENSIONS AND CRITERIA FOR FSM 881 PROCESSING
* * * * *

2.4  Maximum Weight

[Amend 2.4 to add a weight limit for BPM flats by adding new item d to 
read as follows:]
    d. For Bound Printed Matter flat-size pieces claiming the barcode 
discount, 16 ounces.
* * * * *
[Delete C830 in its entirety. C830 contains standards for upgradable 
mail, including address placement, OCR read area, fonts, and 
reflectance. Effective June 30, 2002, the upgradable preparation for 
letters will be replaced with a machinable preparation; the machinable 
preparation has no requirements for address placement, OCR read area, 
etc. References to C830 throughout the DMM will be amended.]

C840  Barcoding Standards for Letters and Flats

* * * * *
2.0  BARCODE LOCATION FOR LETTER-SIZE PIECES

2.1  Barcode Clear Zone

[Amend the first paragraph in 2.1 to remove references to show that 
Standard Mail Enhanced Carrier Route pieces must have a barcode clear 
zone and to remove references to upgradable mail.]
    Each letter-size piece in an automation rate mailing or claimed at 
an Enhanced Carrier Route saturation or high density rate must have a 
barcode clear zone unless the piece bears a DPBC in the address block. 
The barcode clear zone and all printing and material in the clear zone 
must meet the reflectance standards in 5.0. The barcode clear zone is a 
rectangular area in the lower right corner of the address side of cards 
and letter-size pieces defined by these boundaries:
* * * * *

2.2  General Standards

[Amend 2.2 to show that these standards for delivery point barcodes 
also would apply to Enhanced Carrier Route saturation and high density 
rate pieces.]

[[Page 18702]]

    Automation rate pieces and pieces claimed at an Enhanced Carrier 
Route saturation or high density rate that weigh 3 ounces or less may 
bear a DPBC either in the address block or in the barcode clear zone. 
Pieces that weigh more than 3 ounces must bear a DPBC in the address 
block.
* * * * *
5.0  Reflectance

5.1  Background Reflectance

[Amend 5.1 to delete item c to remove references to upgradable mail. No 
other changes to the text.]
* * * * *

5.4  Dark Fibers and Background Patterns

[Amend 5.4 to include references to Enhanced Carrier Route saturation 
and high density rate pieces. Delete item c to remove references to 
upgradable mail.]
    Dark fibers or background patterns (e.g., checks) that produce a 
print contrast ratio of more than 15% when measured in the red and 
green portions of the optical spectrum are prohibited in these 
locations:
    a. The area of the address block or the barcode clear zone where 
the barcode appears on a card-size or a letter-size piece mailed at 
automation rates or at Enhanced Carrier Route saturation or high 
density rates.
    b. The area of the address block or the area of the mailpiece where 
the barcode appears on a flat-size piece in an automation rate mailing.
* * * * *
[Amend the title and summary text of C850 by replacing ``Standard 
Mail'' and ``Package Services'' with ``Parcels'' to read as follows:]

C850  Barcoding Standards for Parcels

Summary

    C850 describes the technical standards for barcoded parcels. It 
defines parcel barcode characteristics, location, and content.
1.0  General

1.1  Basic Requirement

[Amend 1.1 to remove references to specific classes of mail to read as 
follows:]
    Every parcel eligible for a barcode discount must bear a properly 
prepared barcode that represents the correct ZIP Code information for 
the delivery address on the mailpiece plus the appropriate verifier 
character suffix or application identifier prefix characters as 
described in 1.0 through 4.0. The combination of appropriate ZIP Code 
and verifier or application identifier characters uniquely identifies 
the barcode as the postal routing code.
* * * * *

1.4  Use With Delivery Confirmation and Signature Confirmation 
Services

[Amend 1.4 to remove references to specific classes of mail to read as 
follows:]
    A mailer may qualify for the machinable parcel barcode discount and 
may apply Delivery Confirmation and Signature Confirmation barcodes in 
one of the following ways:
* * * * *
[Amend item 1.4c to delete references to specific classes of mail (to 
allow integrated barcodes for First-Class Mail parcels) to read as 
follows:]
    c. A single integrated barcode may be used by Delivery Confirmation 
electronic option mailers who choose to combine Delivery Confirmation 
or Signature Confirmation service with insurance. Mailers printing 
their own barcodes and using the electronic option must meet the 
specifications in S918, S919, and Publication 91 with these 
modifications:
    (1) The text above the barcode must identify the other service 
requested.
    (2) The service-type code in the barcode must identify the class of 
mail and/or type of special service combined with Delivery Confirmation 
or Signature Confirmation.
* * * * *

D  Deposit, Collection, and Delivery

* * * * *

D200  Periodicals

D210  Basic Information

* * * * *
3.0  EXCEPTIONAL DISPATCH
* * * * *

3.4  Destination Rates

[Amend 3.4 by deleting the first sentence and revising the remaining 
sentence to read as follows:]
    Copies of Periodicals publications deposited under exceptional 
dispatch may be eligible for and claimed at the destination sectional 
center facility (DSCF) or destination delivery unit (DDU) rates if the 
applicable standards in E250 are met.
* * * * *
4.0  DEPOSIT AT AMF

4.1  General

[Amend 4.1 by deleting the reference to SCF rates to read as follows:]
    A publisher that airfreights copies of a Periodicals publication to 
an airport mail facility (AMF) must be authorized additional entry at 
the verifying office (i.e., the post office where the copies are 
presented for postal verification). Postage must be paid at that office 
unless an alternative postage payment method is authorized. Copies 
presented at an AMF may be eligible for the delivery unit rate, subject 
to the applicable standards.
* * * * *

D230  Additional Entry

* * * * *
2.0  Distribution plan
* * * * *
[Remove 2.2, Contingency Entries, and redesignate 2.1 as 2.0.]
* * * * *
4.0  USE OF ENTRY
* * * * *
[Remove 4.6, Contingency Entry and redesignate 4.7 as 4.6.]
* * * * *

D500  Express Mail

* * * * *
1.0  SERVICE OBJECTIVES AND REFUND CONDITIONS

1.1  Express Mail Same Day Airport Service

[Revise 1.1 to read as follows:]
    For Express Mail Same Day Airport Service, the USPS refunds the 
postage for an item not available for customer pickup at destination by 
the time specified when the item was accepted at origin, unless the 
delay was caused by one of the situations in 1.6.

1.2  Express Mail Custom Designed Service

[Revise 1.2 to read as follows:]
    For Express Mail Custom Designed Service, the USPS refunds the 
postage for an item not available for customer pickup at destination or 
not delivered to the addressee within 24 hours of mailing, unless the 
item was mailed under a service agreement that provides for delivery 
more than 24 hours after scheduled presentation at the point of origin 
or if the delay was caused by one of the situations in 1.6.

1.3  Express Mail Next Day and Second Day Services

[Revise 1.3 to read as follows:]
    For Express Mail Next Day Service, the USPS refunds the postage for 
an item not available for customer pickup at destination or for which 
delivery to the addressee was not attempted, subject to the standards 
for this service, unless the delay was caused by one of the situations 
in 1.6.

[[Page 18703]]

1.4  Express Mail Military Service

[Revise 1.4 to read as follows:]
    For Express Mail Military Service (EMMS) items presented at APO/FPO 
facilities before the published cutoff time are delivered the second 
day after acceptance. If presented after the published cut-off time, 
such items are delivered the third day after acceptance. For EMMS, the 
USPS refunds postage for an item not available for customer pickup at 
the APO/FPO of address or for which delivery to the addressee was not 
attempted domestically within the times specified by the standards for 
this service, unless the item was delayed by Customs; the item was 
destined for an APO/FPO that was closed on the intended day of delivery 
(delivery is attempted the next business day); or the delay was caused 
by one of the situations in 1.6.
* * * * *

1.6  Postage Not Refunded

[Revise 1.6 to add the additional limitations for Express Mail refunds 
to read as follows:]
    Postage refunds may not be available if delivery was attempted 
within the times required for the specific service, or if the delay of 
the item was caused by any of the following reasons:
    a. Properly detained for law enforcement purpose; strike or work 
stoppage; delayed because of an incorrect ZIP Code or address; 
forwarding or return service was provided after the item was made 
available for claim; delivery was attempted within the times required 
for the specific service; delay or cancellation of flights. Attempted 
delivery occurs under any of these situations when the delivery is 
physically attempted, but cannot be made; the shipment is available for 
delivery, but the addressee made a written request that the shipment be 
held for a specific day or days; the delivery employee discovers that 
the shipment is undeliverable as addressed before leaving on the 
delivery route.
    b. As authorized by USPS headquarters, when the delay was caused by 
governmental action beyond the control of the USPS or air carriers; 
war, insurrection, or civil disturbance; breakdown of a substantial 
portion of the USPS transportation network resulting from events or 
factors outside the control of the USPS; or acts of God.
* * * * *

E  Eligibility

E000  Special Eligibility Standards

* * * * *

E070  Mixed Classes

* * * * *
2.0  ATTACHMENTS OF DIFFERENT CLASSES
* * * * *

2.2  Rate Qualification

    If a Periodicals, Standard Mail, or Package Services host piece 
qualifies for:
* * * * *
[Amend item d by revising the first sentence and removing the second 
sentence to read as follows:]
    d. A destination entry rate (DDU, DSCF, DADC, or DBMC), a Standard 
Mail attachment is eligible for the comparable destination entry rate. 
The attachment need not meet the volume standard that would apply if 
mailed separately. A rate including a destination entry discount may 
not be claimed for an attachment unless a similar rate is available and 
claimed for the host piece.
* * * * *

E100  First-Class Mail

E110  Basic Standards

* * * * *
[Revise 3.0 to read as follows:]
3.0  CARD RATE
    To be eligible for a card rate, a stamped card, postcard, and each 
part of a double (reply) card must meet the physical standards in C100. 
The reply half of a double card need not bear postage when originally 
mailed, but it must bear postage at the applicable rate when returned, 
unless prepared as business reply mail (S922) or as a merchandise 
return service label (S923.5.4).
* * * * *

E120  Priority Mail

* * * * *
2.0  RATES
* * * * *

2.2  Flat-Rate Envelope

[Amend 2.2 by changing ``2-pound'' to ``1-pound'' to read as follows:]
    Any amount of material that can be mailed in the special flat-rate 
envelope available from the USPS is subject to the 1-pound Priority 
Mail rate, regardless of the actual weight of the mailpiece.
* * * * *

2.4  Keys and Identification Devices

[Amend 2.4 to show that the 2-pound rate is a zoned rate, to read as 
follows:]
    Keys and identification devices (e.g., identification cards or 
uncovered identification tags) that weigh more than 13 ounces but not 
more than 1 pound are returned at the 1-pound Priority Mail rate plus 
the fee shown in R100.10.0. Keys and identification devices weighing 
more than 1 pound but not more than 2 pounds are mailed at the 2-pound 
Priority Mail rate for zone 4 plus the fee in R100.10.0. The key or 
identification device must bear, contain, or have securely attached the 
name and complete address of a person, organization, or concern, with 
instructions to return the key or identification device 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 2.2 to change ``nonstandard'' to ``nonmachinable'' to read as 
follows:]
    Keys and identification devices (e.g., identification cards or 
uncovered identification tags) that weigh 13 ounces or less are mailed 
at the applicable single-piece letter rate plus the fee in R100.10.0, 
and if applicable, the nonmachinable surcharge. The keys and 
identification devices must 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.
* * * * *
[Add new 2.4 to show that letter-size pieces may be subject to the 
nonmachinable surcharge to read as follows:]

2.4  Nonmachinable Surcharge--Letter-Size Pieces

    The nonmachinable surcharge in R100.11.0 applies to letter-size 
pieces:
    a. That weigh 1 ounce or less and meet one or more of the 
nonmachinable characteristics in C050.2.2. Pieces mailed at the card 
rate are not subject to the nonmachinable surcharge.
    b. For which the mailer chooses the manual only (``do not 
automate'') option. Pieces mailed at the card rate may choose this 
option but are not subject to the surcharge.

[Add new 2.5 to show that flats may be subject to the nonmachinable 
surcharge to read as follows:]

2.5  Nonmachinable Surcharge--Nonletters

    Nonletters (flats and parcels) that weigh 1 ounce or less are 
subject to the

[[Page 18704]]

nonmachinable surcharge in R100.11.0 if any one of the following 
applies (see C010.1.1 for how to determine the length and height of a 
mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
3.0  PRESORTED RATE
* * * * *

3.3  Address Quality

[Amend the first paragraph of 3.3 to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed. There are no other changes to this section.]
    The move update standards for address quality are listed below. The 
mailer's signature on the postage statement certifies that this 
standard has been met when the corresponding mail is presented to the 
USPS: * * *

3.4  ZIP Code Accuracy

[Amend 3.4 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All 5-digit ZIP Codes included in addresses on pieces claimed at 
the Presorted rate must be verified and corrected within 12 months 
before the mailing date using a USPS-approved method. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS. This 
standard applies to each address individually, not to a specific list 
or mailing. An address meeting this standard may be used in mailings at 
any other rate to which the standard applies during the 12-month period 
after its most recent update.

[Add new 3.5 to show that letter-size pieces may be subject to the 
nonmachinable surcharge to read as follows:]

3.5  Nonmachinable Surcharge--Letter-Size Pieces

    Letter-size pieces that weigh 1 ounce or less and meet one or more 
of the nonmachinable characteristics in C050.2.2 are subject to the 
nonmachinable surcharge in R100.11.0. Pieces mailed at the card rate 
are not subject to the nonmachinable surcharge. Double cards that are 
not prepared in accordance with C810 are considered nonmachinable; they 
are not charged the surcharge but must be prepared according to the 
standards for nonmachinable pieces in M130. Pieces that weigh more than 
3.3 ounces but still meet the dimensions for a letter must be prepared 
according to the standards for nonmachinable pieces in M130.

[Add new 3.6 to show that flat-size pieces may be subject to the 
nonmachinable surcharge:]

3.6  Nonmachinable Surcharge--Nonletters

    Nonletters (flats and parcels) that weigh 1 ounce or less are 
subject to the nonmachinable surcharge in R100.11.0 if any one of the 
following applies (see C010.1.1 for how to determine the length and 
height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.

[Add new 3.7 to show that the nonmachinable surcharge applies to pieces 
where the mailer chooses the manual only option to read as follows:]

3.7  Manual Only Option

    The nonmachinable surcharge in R100.11.0 applies to any letter-size 
piece (except card rate pieces) for which a mailer chooses the manual 
only (``do not automate'') option. For card rate pieces, a mailer can 
specify manual handling, but a surcharge does not apply.

[Remove 4.0, Nonstandard Surcharge.]

E140  Automation Rates

1.0  BASIC STANDARDS
* * * * *

1.3  Address Quality

[Amend the first paragraph of 1.3 to clarify that signing a postage 
statement certifies the mail meets the requirements for the rates 
claimed to read as follows:]
    The move update standards for address quality are listed below. The 
mailer's signature on the postage statement certifies that this 
standard has been met when the corresponding mail is presented to the 
USPS: * * *

1.4  Carrier Route Presort

[Amend 1.4 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed to read as follows:]
    Carrier route rates are available only for letter-size mail and 
only for those 5-digit ZIP Code areas identified with an ``A'' or ``B'' 
in the Carrier Route Indicators field of the USPS City State File used 
for address coding. Carrier route codes must be applied to mailings 
using CASS-certified software and the current USPS Carrier Route File 
scheme or another AIS product containing carrier route information, 
subject to A930 and A950. Carrier route and City State File information 
must be updated within 90 days before the mailing date. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS.
* * * * *
[Remove 1.6, Nonstandard Surcharge.]
[Amend the title and text of 2.0 to reorganize rate application 
information for letters and to replace the basic rate with the AADC and 
mixed AADC rates.]
2.0  RATE APPLICATION--CARDS AND LETTERS
    Automation rates apply to each piece that is sorted under M810 into 
the corresponding qualifying groups:
    a. Pieces in full carrier route trays, in carrier route groups of 
10 or more pieces each placed in 5-digit carrier routes trays, or in 
carrier route packages of 10 or more pieces each placed in 3-digit 
carrier routes trays qualify for the carrier route rate. Preparation to 
qualify for the carrier route rate is optional and need not be done for 
all carrier routes in a 5-digit area.
    b. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays 
qualify for the 5-digit rate. Preparation to qualify for the 5-digit 
rate is optional and need not be done for all 5-digit or 5-digit scheme 
destinations.
    c. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
qualify for the 3-digit rate.

    d. Groups of fewer than 150 pieces in origin 3-digit or origin 3-
digit scheme trays and all pieces in AADC trays qualify for the AADC 
rate.

    e. All pieces in mixed AADC trays qualify for the mixed AADC rate. 
[Redesignate 2.2 and 2.3, describing rate application for flats, as new 
3.0 and revise to replace the basic automation rate with the new AADC 
and mixed AADC rates and to add the nonmachinable surcharge.]
3.0  RATE APPLICATION--FLATS AND OTHER NONLETTERS

3.1  Package-Based Preparation

    Automation rates apply to each piece that is sorted under M820.2.0 
or M910.1.0 into the corresponding qualifying groups:
    a. Pieces in 5-digit packages of 10 or more pieces qualify for the 
5-digit rate.

[[Page 18705]]

Preparation to qualify for the 5-digit 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 rate.
    c. Pieces in ADC packages of 10 or more pieces qualify for the ADC 
rate.
    d. Pieces in mixed ADC packages qualify for the mixed ADC rate.

3.2  Tray-Based Preparation

    Automation rates apply to each piece that is sorted under M820.4.0 
into the corresponding qualifying groups:
    a. Groups of 90 or more pieces in 5-digit trays qualify for the 5-
digit rate. Preparation to qualify for the 5-digit rate is optional and 
need not be done for all 5-digit destinations.
    b. Groups of 90 or more pieces in 3-digit trays qualify for the 3-
digit rate.
    c. Groups of fewer than 90 pieces in origin 3-digit trays and all 
pieces in ADC trays qualify for the ADC rate.
    d. All pieces in mixed ADC trays qualify for the mixed ADC rate.
[Add new 3.3 to show that flats may be subject to the nonmachinable 
surcharge to read as follows:]

3.3  Nonmachinable Surcharge

    Pieces that weigh 1 ounce or less are subject to the nonmachinable 
surcharge in R100.11.0 if any one of the following applies (see 
C010.1.1 for how to determine the length and height of a mailpiece):
    a. The piece is greater than \1/4\-inch thick.
    b. The length is more than 11\1/2\ inches or the height is more 
than 6\1/8\ inches.
    c. The aspect ratio (length divided by height) is less than 1.3 or 
more than 2.5.
* * * * *

E200  Periodicals

E210  Basic Standards

* * * * *

E217  Basic Rate Eligibility

[Amend 1.0 by subdividing the section and revising the text for clarity 
to read as follows:]
1.0  OUTSIDE-COUNTY RATES

1.1  Description

    Outside-County rates apply to copies of an authorized Periodicals 
publication mailed by a publisher or news agent that are not eligible 
for In-County rates under 4.0. Outside-County rates consist of an 
addressed per piece charge, a zoned charge for the weight of the 
advertising portion of the publication, and a unzoned charge for the 
weight of the nonadvertising portion.

1.2  Nonrequester and Nonsubscriber Copies

    For excess noncommingled mailings under E215, nonrequester and 
nonsubscriber copies are not eligible for Periodicals rates unless the 
publication is authorized under E212.2.0 and is not authorized to 
contain general advertising. Nonrequester and nonsubscriber copies in 
excess of the 10% allowance under E215 are subject to Outside-County 
rates when commingled with requester or subscriber copies, as 
appropriate.
* * * * *
3.0  OUTSIDE-COUNTY SCIENCE-OF-AGRICULTURE RATES
* * * * *

3.3  Other Rates

[Amend 3.3 by adding the new destination ADC rate, removing the last 
sentence, and rearranging sentences two and three to read as follows:]
    All Outside-County rates and discounts apply, except for separate 
rates for DDU, DSCF, DADC, and zones 1 and 2. Nonsubscriber copies are 
subject to E215. Each piece must meet the standards for the rates or 
discounts claimed.

[Remove 3.4, Nonadvertising Discount, and redesignate 3.5 as 3.4.]
* * * * *
5.0  DISCOUNTS
[Amend 5.0 by restructuring for clarity and adding a reference for the 
new per piece pallet discounts for nonletter-size mail to read as 
follows:]
    The following discounts are available:
    a. Nonadvertising. The nonadvertising discount applies to the 
Outside-County piece rate and is computed under P013.
    b. Destination Entry. Destination entry discounts are available 
under E250 for copies entered at specific USPS facilities.
    c. Pallet. Outside-County rate nonletters (flats and irregular 
parcels) packaged and placed directly on pallets under the applicable 
standards in M045 are eligible for one of the pallet discounts in R200. 
Except for overflow pallets, each pallet must contain a minimum of 250 
pounds of addressed pieces. Pieces taken to destination delivery units 
(DDUs) under the applicable standards in E250, that cannot accept 
pallets, need only meet the minimum weight requirement. To determine 
whether a 5-digit delivery facility can handle pallets, refer to the 
Drop Shipment Product maintained by the National Customer Support 
Center (NCSC) (see G043).
* * * * *

E220  Presorted Rates

1.0  BASIC INFORMATION
* * * * *

1.3  ZIP Code Accuracy

[Amend 1.3 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed to read as follows:]
    All 5-digit ZIP Codes in addresses on pieces claimed at the 5-
digit, 3-digit, or basic rates must be verified and corrected within 12 
months before the mailing date by a USPS-approved method. The mailer's 
signature on the postage statement certifies that this standard has 
been met when the corresponding mail is presented to the USPS. This 
standard applies to each address individually, not to a specific list 
or mailing. An address meeting this standard may be used in mailings at 
any other rate to which the standard applies during the 12-month period 
after its most recent update.
* * * * *
[Remove 3.0, Combining Multiple Publications or Editions. This section 
has moved to M230.]
* * * * *

E240  Automation Rates

1.0  BASIC STANDARDS
* * * * *

1.2  Enclosed Reply Cards and Envelopes

[Amend 1.2 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All letter-size reply cards and envelopes provided as enclosures in 
automation rate Periodicals and addressed for return to a domestic 
delivery address must meet the standards in C810 for enclosed reply 
cards and envelopes. The mailer's signature on the postage statement 
certifies that this standard has been met when the corresponding mail 
is presented to the USPS.
* * * * *
[Revise E250 in its entirety to clarify standards for all destination 
entry Periodicals mailings; to include the new destination area 
distribution center (DADC) entry rates and discounts; and to reflect 
that DSCF pieces must be deposited at the DSCF or a USPS-designated 
facility.]

[[Page 18706]]

E250  Destination Entry

1.0  BASIC STANDARDS

1.1  Rate Application

    Outside-County addressed pieces may qualify for destination area 
distribution center (DADC) or destination sectional center facility 
(DSCF) rates and discounts subject to the standards in 2.0 and 3.0, 
respectively. Carrier route rate addressed pieces may qualify for 
destination delivery unit (DDU) rates and discounts subject to the 
standards in 4.0. Any advertising portion may be eligible for DADC, 
DSCF, or DDU advertising pound rates based on the entry facility and 
the address on the piece. For each addressed piece, only one 
destination entry discount may be claimed. An individual package, tray, 
sack, or pallet may contain pieces claimed at different destination 
entry rates and discounts. Addressed pieces may also qualify for the 
destination entry pallet per piece discount in E217. In-County carrier 
route rate addressed pieces may qualify for the DDU discount subject to 
the standards in 4.0.

1.2  Documentation of Postage

    Subject to P012, the mailer must be able to show compliance with 
eligibility requirements (e.g., by package, tray, sack, or pallet), and 
list the number of addressed pieces by presort level for each 5-digit 
and 3-digit ZIP Code destination as appropriate for the rates and 
discounts claimed. Documentation is not required if each addressed 
piece in the mailing is of identical weight, and are separated by zone, 
rate, and destination entry (if applicable), when presented for 
mailing.
2.0  DESTINATION AREA DISTRIBUTION CENTER (DADC)

2.1  Definition

    For this standard, DADC includes the facilities listed in L004, or 
a USPS-designated facility.

2.2  General Eligibility

    Addressed pieces meeting the standards in 1.0 and 2.0 are eligible 
for DADC rates when deposited at an ADC (or USPS-designated facility), 
and are addressed for delivery to one of the 3-digit ZIP Codes served 
by the facility where deposited.

2.3  Rates

    DADC rates include a per piece discount off the addressed piece 
rate and, if applicable, an advertising pound rate. Pieces must meet 
the standards for any other rate and discount claimed.
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF)

3.1  Definition

    For this standard, DSCF includes the facilities listed in L005 and 
L006, or a USPS-designated facility.

3.2  General Eligibility

    Addressed pieces meeting the standards in 1.0 and 3.0 are eligible 
for DSCF rates when deposited at an SCF (or USPS-designated facility), 
and are addressed for delivery to one of the 3-digit ZIP Codes served 
by the facility where deposited.

3.3  Rates

    DSCF rates include a per piece discount off the addressed piece 
rate and, if applicable, an advertising pound rate. Pieces must meet 
the standards for any other rate and discount claimed.
4.0  DESTINATION DELIVERY UNIT (DDU)

4.1  Definition

    For this standard, the DDU is the facility where the carrier cases 
mail for delivery to the addresses on the pieces in the mailing.

4.2  General Eligibility

    Addressed pieces, including pieces under exceptional dispatch, 
meeting the standards in 1.0 and 4.0 are eligible for DDU rates when 
deposited at the facility where the carrier serving the delivery 
address on the mail is located.

4.3  Rates

    DDU rates for Outside-County include a per piece discount off the 
addressed piece rate and, if applicable, an advertising pound rate. DDU 
rates for In-County consist of a per piece discount off the addressed 
piece rate and a pound charge. Outside-County and In-County pieces must 
meet the standards for any other rate and discount claimed.

4.4  Maximum Volume

    The same mailer may not present for deposit more than four DDU rate 
mailings at the same delivery unit (or another acting as its agent) in 
any 24-hour period. This limit may be waived if local conditions 
permit. A mailer may ask for such a waiver when scheduling deposit of 
the mailings. There is no maximum for plant-verified drop shipments 
made under P950. This standard does not apply to mailings presented to 
the publication's authorized original entry, or additional entry, 
serving the place where the pieces were prepared for mailing, if that 
entry post office is also the facility at which the DDU rate pieces 
must be deposited.

4.5  Deposit Schedule

    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 mail 
entered under exceptional dispatch, the application for exceptional 
dispatch required under D210 also serves as a request for standing 
appointments.

E260  Ride-Along

Summary

    E260 describes the standards for the Periodicals Ride-Along 
classification.
1.0  BASIC ELIGIBILITY

1.1  Description

    The standards in E260 apply to Standard Mail material paid at the 
Periodicals Ride-Along rate that is attached to or enclosed with 
Periodicals mail. All Periodicals subclasses may enclose eligible 
matter at the Ride-Along rate.

1.2  Basic Standards

    Only one Ride-Along piece may be attached to or enclosed with an 
individual copy of Periodicals mail. The Ride-Along rate must be paid 
on each copy in the mailing, not addressed copies. If more than one 
Ride-Along piece is attached or enclosed, mailers have the option of 
paying Standard Mail postage for all the enclosures or attachments, or 
paying the Ride-Along rate for the first attachment or enclosure and 
Standard Mail rates for subsequent attachments and enclosures. Ride-
Along pieces eligible under E260 must be eligible as Standard Mail and 
must:
    a. Not exceed any dimension of the host publication.
    b. Not exceed 3.3 ounces and must not exceed the weight of the host 
publication.
    c. Not obscure the title of the publication or the address label.

1.3  Physical Characteristics

    The host Periodicals piece and the Ride-Along piece must meet the 
following physical characteristics:
    a. Construction:

[[Page 18707]]

    (1) Bound publications. If contained within the host publication 
the Ride-Along piece must be securely affixed to prevent detachment 
during postal processing. If loose, the Ride-Along piece and 
publication must be enclosed together in a full wrapper, polybag, or 
envelope.
    (2) Unbound publications. A loose Ride-Along enclosure with an 
unbound publication must be combined with and inserted within the 
publication in a manner that prevents detachment during postal 
processing. If the Ride-Along piece is included outside the unbound 
publication, the publication and the Ride-Along piece must be enclosed 
in a full wrapper, polybag, or envelope.
    b. A Periodicals piece (automation and nonautomation) with the 
addition of a Ride-Along piece must remain uniformly thick and remain 
in the same processing category as before the addition of the Ride-
Along attachment or enclosure.
    c. A Periodicals piece with a Ride-Along that claims automation 
rates must meet the appropriate automation requirements in C810 or 
C820, must maintain the same processing category as before the addition 
of the Ride-Along attachment or enclosure and, for flat-size mail, must 
meet the flat sorting machine criteria under C820 (FSM 881 or FSM 
1000). For example:
    (1) If, due to the inclusion of a Ride-Along piece, an FSM 881-
compatible host piece can no longer be processed on the FSM 881, but 
must be processed on an FSM 1000, then that piece must pay either the 
appropriate Periodicals nonautomation rate plus the Ride-Along rate, or 
the appropriate Periodicals automation rate for the host piece and the 
appropriate Standard Mail rate for the attachment or enclosure.
    (2) If, due to the inclusion of a Ride-Along piece, an FSM 1000-
compatible host piece can no longer be processed on the FSM 1000, but 
must be processed manually, then that piece must pay either the 
appropriate Periodicals nonautomation rate plus the Ride-Along rate, or 
the appropriate Periodicals nonautomation rate for the host piece and 
the appropriate Standard Mail rate for the attachment or enclosure.
    (3) If, due to the inclusion of a Ride-Along piece, an automation 
letter host piece can no longer be processed as an automation letter, 
then that piece must pay the appropriate Periodicals nonautomation rate 
plus the Ride-Along rate, or the appropriate Periodicals nonautomation 
rate for the host piece and the appropriate Standard Mail rate for the 
attachment or enclosure.

1.4  Marking

    The marking ``Ride-Along Enclosed'' must be placed on or in the 
host publication if it contains an enclosure or attachment paid at the 
Ride-Along rate. If placed on the outer wrapper, polybag, envelope, or 
cover of the host publication, the marking must be set in type no 
smaller than any used in the required ``POSTMASTER: Send change of 
address * * *'' statement. If placed in the identification statement, 
the marking must meet the applicable standards. The marking must not be 
on or in copies not accompanied by a Ride-Along attachment or 
enclosure.
* * * * *

E500  Express Mail

1.0  STANDARDS FOR ALL EXPRESS MAIL
* * * * *

1.6  Flat-Rate Envelope

[Amend 1.6 by changing ``2-pound'' to ``\1/2\-pound'' to read as 
follows:]
    Material mailed in the special flat-rate envelope available from 
the USPS is subject to the postage rate for a \1/2\-pound piece at the 
service level requested by the customer, regardless of the actual 
weight of the piece.
* * * * *

E600  Standard Mail

E610  Basic Standards

* * * * *
8.0  PREPARATION
    Each Standard Mail mailing is subject to these general standards:
* * * * *
[Amend 8.0e to remove references to upgradable preparation to read as 
follows:]
    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.
* * * * *

E620  Presorted Rates

1.0  BASIC STANDARDS

1.1 General

    All pieces in a Presorted Regular or Presorted Nonprofit Standard 
Mail mailing must:
* * * * *
[Amend 1.1c to remove references to upgradable mailings:]
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code, unless an alternative address format is used subject to 
A040. Pieces prepared with detached address labels are subject to 
additional standards in A060.

1.2 Residual Volume Requirement

[Amend 1.2 to remove the requirement that residual volumes must appear 
on the same postage statement.]
    Pieces in an Enhanced Carrier Route rate mailing that has 
separately met a 200-piece or 50-pound minimum quantity requirement may 
be counted toward the minimum quantity requirement for a Presorted rate 
mailing, provided that the Enhanced Carrier Route rate mailing and the 
Presorted rate mailing are part of the same mailing job. Likewise, 
pieces in an automation rate mailing that has separately met a 200-
piece or 50-pound minimum quantity requirement may be counted toward 
the minimum quantity requirement for a Presorted rate mailing, provided 
that the automation rate mailing and the Presorted mailing are part of 
the same mailing job. Pieces mailed at Presorted Standard Mail rates 
must not be counted toward the minimum volume requirements for an 
Enhanced Carrier Route rate or an automation rate mailing.
* * * * *

1.4  ZIP Code Accuracy

[Amend 1.4 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    All 5-digit ZIP Codes included in addresses on pieces claimed at 
Presorted Regular and Presorted Nonprofit rates must be verified and 
corrected within 12 months before the mailing date, using a USPS-
approved method. The mailer's signature on the postage statement 
certifies that this standard has been met when the corresponding mail 
is presented to the USPS. This standard applies to each address 
individually, not to 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.
2.0  RATES
[Amend 2.0 by combining i2.0a and 2.0b into new 2.0a and renumbering 
the remaining items accordingly. This is revised to remove references 
to upgradable mailings.]
    Presorted Regular or Nonprofit Standard Mail rates apply to Regular 
or Nonprofit Standard Mail letters, flats, and machinable and irregular 
parcels weighing less than 16 ounces that are

[[Page 18708]]

prepared under M045, M610, or (flat-size mail only) under M910, M920, 
M930, or M940. Basic Presorted rates apply to pieces that do not meet 
the standards for the \3/5\ Presorted rates described below. Basic rate 
and \3/5\ rate pieces prepared as part of the same mailing are subject 
to a single minimum volume standard. Pieces that do not qualify for the 
\3/5\ rate must be paid at the basic rate and prepared accordingly. 
Pieces may qualify for the \3/5\ rate if they are presented:
    a. In quantities of 150 or more letter-size pieces for a single 3-
digit area, prepared in 5-digit or 3-digit trays.
* * * * *
[Redesignate 4.0, Barcoded Discount, as 5.0. Add new 4.0 to show that 
some Presorted letters are subject to the nonmachinable surcharge to 
read as follows:]
4.0  NONMACHINABLE SURCHARGE
    The nonmachinable surcharge in R600.6.0 applies to any letter-size 
piece (including cards):
    a. That weighs 3.3 ounces or less and meets one or more of the 
nonmachinable characteristics in C050.2.2.
    b. For which a mailer chooses the manual only (``do not automate'') 
option.
* * * * *

E630  Enhanced Carrier Route Rates

[Revise E630 in its entirety to reorganize and clarify the current 
standards and to add standards that require letter-size pieces claimed 
at high density or saturation rates to be automation-compatible and 
have delivery point barcodes. Please note that the exception to the 
sack minimum for saturation rate pieces currently in E630 has been 
moved to M620.4.1.]
1.0  BASIC STANDARDS

1.1  General

    All pieces in an Enhanced Carrier Route Standard Mail mailing must:
    a. Meet the basic standards for Standard Mail in E610.
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail. Automation basic 
carrier route rate pieces are subject to a separate 200-piece or 50-
pound minimum volume standard and may not be included in the same 
mailing as other Enhanced Carrier Route mail. Regular and Nonprofit 
mailings must meet separate minimum volumes.
    c. Be sorted to carrier routes, marked, and documented under M045 
(if palletized), M620, M920, M930, or M940.
    d. Have a complete delivery address or an alternate address format.
    e. Meet the address quality and coding standards in A800 and A950.

1.2  Maximum Size

Enhanced Carrier Route rate mail may not be more than 11\3/4\ inches 
high, 14 inches long, or \3/4\-inch thick. Exception: Merchandise 
samples with detached address labels (DALs) may exceed these dimensions 
if the labels meet the standards in A060.

1.3  Preparation

Preparation to qualify for any Enhanced Carrier Route rate is optional 
and need not be performed for all carrier routes in a 5-digit area. An 
Enhanced Carrier Route mailing may include pieces at basic, high 
density, and saturation Enhanced Carrier Route rates. Automation basic 
carrier route rate pieces must be prepared as a separate mailing (see 
E640).

1.4  Carrier Route Information

    Except for mailings prepared with a simplified address under A040, 
a carrier route code must be applied to each piece in the mailing using 
CASS-certified software and the current USPS Carrier Route File scheme, 
hard copy Carrier Route Files, or another AIS product containing 
carrier route information, subject to A930 and A950. Carrier route 
information must be updated within 90 days before the mailing date.
2.0  BASIC RATES

2.1  All Pieces

    All pieces mailed at basic rates must be prepared in walk sequence 
or in line-of-travel (LOT) sequence according to LOT schemes prescribed 
by the USPS (see M050).

2.2  Letter-Size Pieces

    Basic rates apply to each piece sorted under M045 or M620 and in a 
full carrier route tray or in a carrier route package of 10 or more 
pieces placed in a 5-digit carrier routes or 3-digit carrier routes 
tray.

2.3  Flat-Size Pieces

    Basic rates apply to each piece in a carrier route package of 10 or 
more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.

2.4  Irregular Parcels

    Basic rates apply to each piece in a carrier route sack or carton 
containing at least 125 pieces or 15 pounds of pieces, or in a 5-digit 
carrier routes sack or carton. DALs must be in carrier route packages 
of 10 or more pieces and prepared under A060.
3.0  HIGH DENSITY RATES

3.1 All Pieces

    All pieces mailed at high density rates must:
    a. Be prepared in walk sequence according to schemes prescribed by 
the USPS (see M050).
    b. Meet the density requirement of at least 125 pieces for each 
carrier route. Multiple pieces per delivery address can count toward 
this density standard. Fewer pieces may be prepared for routes with 
fewer than 125 possible deliveries if a piece is addressed to every 
possible delivery on the route.

3.2  Letter-Size Pieces

    High density rates apply to each piece that is automation-
compatible according to C810, has a delivery point barcode under C840, 
and is in a full carrier route tray or in a carrier route package of 10 
or more pieces placed in a 5-digit carrier routes or 3-digit carrier 
routes tray. Pieces that are not automation-compatible or are not 
barcoded are mailable at the high density nonletter rate. Pieces 
bearing a simplified address do not need to meet the standards in C810 
and are not required to have a delivery point barcode.

3.3  Discount for Heavy Letters

    Pieces that otherwise qualify for the high density letter rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the piece/pound rate and receive a discount equal to the high 
density nonletter piece rate (3.3 ounces or less) minus the high 
density letter piece rate (3.3 ounces or less). If claiming a 
destination entry rate, the discount is calculated using the 
corresponding rates.

3.4  Flat-Size Pieces

    High density rates apply to each piece in a carrier route package 
of 10 or more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.

[[Page 18709]]

    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.

3.5  Irregular Parcels

    High density rates apply to each piece in a carrier route sack or 
carton containing at least 125 pieces or 15 pounds of pieces, or in a 
5-digit carrier routes sack or carton. DALs must be in carrier route 
packages of 10 or more pieces and prepared under A060.
4.0  SATURATION RATES

4.1  All Pieces

    All pieces mailed at saturation rates must:
    a. Be prepared in walk sequence according to schemes prescribed by 
the USPS (see M050).
    b. Meet the density requirement of at least 90% or more of the 
active residential addresses or 75% or more of the total number of 
active possible delivery addresses on each carrier route receiving this 
mail. Pieces bearing a simplified address must meet the coverage 
standards in A040. Multiple pieces per delivery address do not count 
toward this density standard.

4.2  Letter-Size Pieces

    Saturation rates apply to each piece that is automation-compatible 
according to C810, has a delivery point barcode under C840, and is in a 
full carrier route tray or in a carrier route package of 10 or more 
pieces placed in a 5-digit carrier routes or 3-digit carrier routes 
tray. Pieces that are not automation-compatible or are not barcoded are 
mailable at the saturation nonletter rate. Pieces bearing a simplified 
address do not need to meet the standards in C810 and are not required 
to have a delivery point barcode.

4.3  Discount for Heavy Letters

    Pieces that otherwise qualify for the saturation letter rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the piece/pound rate and receive a discount equal to the 
saturation nonletter piece rate (3.3 ounces or less) minus the 
saturation letter piece rate (3.3 ounces or less). If claiming a 
destination entry rate, the discount is calculated using the 
corresponding rates.

4.4  Flat-Size Pieces

    Saturation rates apply to each piece in a carrier route package of 
10 or more pieces that is:
    a. Palletized under M045, M920, M930, or M940.
    b. Placed in a carrier route sack containing at least 125 pieces or 
15 pounds of pieces.
    c. Placed in a merged 5-digit scheme, 5-digit scheme carrier 
routes, merged 5-digit, or 5-digit carrier routes sack.

4.5  Irregular Parcels

    Saturation rates apply to each piece in a carrier route sack or 
carton containing at least 125 pieces or 15 pounds of pieces, or in a 
5-digit carrier routes sack or carton. DALs must be in carrier route 
packages of 10 or more pieces and prepared under A060.
5.0  RESIDUAL SHAPE SURCHARGE
    Any piece that is prepared as a parcel or is not letter-size or 
flat-size as defined in C050 is subject to the residual shape 
surcharge.

E640  Automation Rates

1.0  REGULAR AND NONPROFIT RATES
* * * * *

1.2  Enclosed Reply Cards and Envelopes

[Amend 1.2 to clarify that signing a postage statement certifies the 
mail meets the requirements for the rates claimed.]
    All letter-size reply cards and envelopes (business reply, courtesy 
reply, and meter reply mail) provided as enclosures in automation 
Regular or Nonprofit Standard Mail, and addressed for return to a 
domestic delivery address, must meet the standards in C810 for enclosed 
reply cards and envelopes. The mailer's signature on the postage 
statement certifies that this standard has been met when the 
corresponding mail is presented to the USPS.

1.3  Rate Application--Letter-Size Pieces

[Amend 1.3 to replace the basic rate with the AADC and mixed AADC 
rates.]
    Automation rates apply to each piece that is sorted under M810 into 
the corresponding qualifying groups:
    a. Groups of 150 or more pieces in 5-digit or 5-digit scheme trays 
qualify for the 5-digit rate. Preparation to qualify for that rate is 
optional and need not be done for all 5-digit or 5-digit scheme 
destinations.
    b. Groups of 150 or more pieces in 3-digit or 3-digit scheme trays 
qualify for the 3-digit rate.
    c. Groups of fewer than 150 pieces in origin or entry 3-digit or 3-
digit scheme trays and groups of 150 or more pieces in AADC trays 
qualify for the AADC rate.
    d. All pieces in mixed AADC trays qualify for the mixed AADC rate.

[Redesignate 1.4, Rate Application--Flats, as 1.5. Add new 1.4 for 
heavy automation letters to read as follows:]

1.4  Discount for Heavy Automation Letters

    Automation letters that weigh more than 3.3 ounces but not more 
than 3.5 ounces pay postage equal to the automation piece/pound rate 
and receive a discount equal to the automation nonletter piece rate 
(3.3 ounces or less) minus the automation letter piece rate (3.3 ounces 
or less). If claiming a destination entry rate, the discount is 
calculated using the corresponding rates.
* * * * *
2.0  ENHANCED CARRIER ROUTE RATES
* * * * *
[Add new 2.6 to include the discount for ECR automation basic letters 
that weigh between 3.3 and 3.5 ounces.]

2.6  Discount for Heavy Letters

    Pieces that otherwise qualify for the ECR automation basic letter 
rate and weigh more than 3.3 ounces but not more than 3.5 ounces pay 
postage equal to the ECR regular basic nonletter piece/pound rate and 
receive a discount equal to the regular basic nonletter piece rate (3.3 
ounces or less) minus the automation basic letter piece rate. If 
claiming a destination entry rate, the discount is calculated using the 
corresponding rates.

E700  Package Services

E710  Basic Standards

* * * * *

E712  Bound Printed Matter

1.0  BASIC STANDARDS

1.1  Description

* * * * *
[Amend 1.1b to read as follows:]
    b. Weigh no more than 15 pounds. Pieces might be subject to other 
minimum weights or dimensions based on the standards for specific 
rates.
* * * * *
[Remove 1.4, POSTNET Barcodes or Flats.]
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:
* * * * *
[Amend the heading of item 2.0 by adding ``Machinable Parcels'' and 
revise the text to read as follows:]

[[Page 18710]]

    d. Barcoded Discount--Machinable Parcels. The barcoded discount 
applies only to BPM machinable parcels (see C050.4.1) that bear a 
correct, readable barcode under C850 for the ZIP Code of the delivery 
address. The pieces must be part of a single-piece rate mailing of 50 
or more BPM parcels or part of a presort rate mailing of at least 300 
BPM parcels prepared under M045 and M720. The barcoded discount is not 
available for parcels mailed at Presorted DDU or DSCF rates, or for 
Presorted DBMC rate mailings entered at an ASF other than the Phoenix, 
AZ, ASF. Carrier route rate mail is not eligible for the barcoded 
discount.

[Add new item 2.0e to read as follows:]
    e. Barcoded Discount--Flats. The barcoded discount applies only to 
BPM flat-size pieces that bear a correct, readable ZIP+4 or delivery 
point barcode (DPBC) under C840 for the ZIP+4 Code, or numeric DPBC of 
the delivery address. The pieces must be part of a single-piece rate 
mailing of 50 or more flat-size pieces or part of a presort rate 
mailing of at least 300 BPM flat-size pieces prepared under M045 and 
M820. The barcoded discount is not available for flat-size pieces 
mailed at Presorted DDU rates or carrier route rates. To qualify for 
the barcoded discount, the flat-size piece must meet the flat sorting 
machine requirements under C820.2.0.
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES

3.1  ZIP Code Accuracy

[Amend 3.1 to clarify that signing a postage statement certifies that 
the mail meets the requirements for the rates claimed to read as 
follows:]
    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's signature 
on the postage statement certifies 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.

[Redesignate current 3.2 as 3.3 and add new 3.2 to show CASS 
certification for automation rate mailings to read as follows:]

3.2  CASS Certification

    Pieces claiming the barcode discount for flat-size mail must meet 
the address quality and coding standards in A800 and A950.

[Amend redesignated 3.3 by adding reference to flats to read as 
follows:]

3.3  Preparation

    Pieces claiming the Presorted rates must be prepared under M045 or 
M722 or, for flats claiming the barcode discount under M820.
* * * * *

E713  Media Mail

[Redesignate former 2.0 as new 1.0.]
[Redesignate former 1.0 as new 2.0 and revise the title and text to 
read as follows:]
2.0  RATES
    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 pieces not 
mailed at a 5-digit or basic rate.
    b. 5-Digit Presort Rate. The 5-digit rate applies to pieces that 
meet the additional requirements in 3.0 and are prepared and presorted 
to 5-digit scheme (machinable parcels only) or 5-digit destinations as 
specified in M730 or M041 and M045.
    c. Basic Presort Rate. The basic rate applies to pieces that meet 
the additional requirements in 3.0 and are prepared and presorted as 
specified in M730 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Media Mail 
machinable parcels (see C050.4.1) 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 basic 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 5-digit rates.

[Revise the title of 3.0 to read as follows:]
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES

3.1 Basic Information

[Amend 3.1 to read as follows:]

    A Presorted Media Mail mailing must contain a minimum of 300 pieces 
claimed at any combination of 5-digit and basic rates. Those pieces in 
the mailing that meet the 5-digit presort requirements are eligible for 
the 5-digit presort rate and those pieces that meet the basic presort 
requirements are eligible for the basic rates, subject to the 
preparation standards in M730 or M045. Pieces in a mailing do not need 
to be identical in size and content. Such nonidentical pieces may be 
merged, sorted together, and presented as a single mailing either with 
the correct postage affixed to each piece in the mailing or with 
postage paid with a permit imprint if authorized by Business Mailer 
Support (BMS), USPS headquarters.
* * * * *
[Revise the title and text of 3.3 to read as follows:]

3.3  5-Digit Rate

    To qualify for the 5-digit rate, a piece must be prepared and 
sorted to either 5-digit scheme (machinable parcels only) and 5-digit 
sacks under M730 or to 5-digit scheme (machinable parcels only) and 5-
digit pallets under M045. All logical 5-digit packages on pallets must 
contain at least 10 pieces. Nonmachinable parcels may qualify for the 
5-digit rate if prepared to preserve sortation by 5-digit ZIP Code as 
prescribed by the postmaster of the mailing office.

[Revise the title and text of 3.4 to read as follows:]

3.4  Basic Rate

    All pieces prepared and sorted under M730 or M045 that are not 
eligible for the 5-digit rate qualify for the basic rate. Nonmachinable 
parcels may qualify for the basic rate if prepared to preserve 
sortation by BMC as prescribed by the postmaster of the mailing office.

[Remove former 3.5 and 3.6.]

E714  Library Mail

[Redesignate former 2.0 as 1.0.]
[Redesignate former 1.0 as new 2.0 and revise title and text to read as 
follows:]
2.0  RATES
    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 pieces not 
mailed at a 5-digit or basic rate.
    b. 5-Digit Presort Rate. The 5-digit rate applies to pieces that 
meet the additional requirements of 3.0 and are prepared and presorted 
to 5-digit scheme (machinable parcels only) and 5-digit destinations as 
specified in M740 or M041 and M045.
    c. Basic Presort Rate. The basic rate applies to pieces that meet 
the additional requirement in 3.0 and are prepared and presorted as 
specified in M740 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Library Mail

[[Page 18711]]

machinable parcels (see C050.4.1) 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 basic 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 5-digit rates.

[Revise the title of 3.0 to read as follows:]
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES

3.1  Basic Information

[Amend 3.1 to read as follows:]

    A Presorted Library Mail mailing must contain a minimum of 300 
pieces claimed at any combination of 5-digit and basic rates. Those 
pieces in the mailing that meet the 5-digit presort requirements are 
eligible for the 5-digit presort rate, and those pieces that meet the 
basic presort requirements are eligible for the basic rate, subject to 
the preparation standards in M740 or M045. Pieces in a mailing do not 
need to be identical in size and content. Such nonidentical pieces may 
be merged, sorted together, and presented as a single mailing either 
with the correct postage affixed to each piece in the mailing or with 
postage paid with a permit imprint if authorized by Business Mailer 
Support (BMS), USPS headquarters.
* * * * *
[Revise the title and text of 3.3 to read as follows:]

3.3  5-Digit Rate

    To qualify for the 5-digit rate, a piece must be prepared and 
sorted to either 5-digit scheme (machinable parcels only) and 5-digit 
sacks under M740 or to 5-digit scheme (machinable parcels only) and 5-
digit pallets under M045. All logical 5-digit packages on pallets must 
contain at least 10 pieces. Nonmachinable parcels may qualify for the 
5-digit rate if prepared to preserve sortation by 5-digit ZIP Code as 
prescribed by the postmaster of the mailing office.

[Revise the title and text of 3.4 to read as follows:]

3.4  Basic Rate

    All pieces prepared and sorted under M740 or M045 that are not 
eligible for the 5-digit rate qualify for the basic rate. Nonmachinable 
parcels may qualify for the basic rate if prepared to preserve 
sortation by BMC as prescribed by the postmaster.

[Remove former 3.5 and 3.6.]
[Remove E715, Bulk Parcel Post.]

E751  Parcel Select

1.0  BASIC STANDARDS

1.1  Definitions

[Amend item 1.1b by adding a sentence after the first one to read as 
follows:]
    b. * * * Those 5-digit machinable parcels not required to be 
entered at a BMC under Exhibit 6.0 and all 3-digit nonmachinable 
parcels sorted to the 3-digit level and claimed at the DSCF rate must 
be deposited at an SCF listed in L005. * * *
* * * * *

1.4  DSCF and DDU Rates

    For DSCF and DDU rates, pieces must meet the applicable standards 
in 1.0 through 6.0 and the following criteria:

[Amend item 1.4a by adding ``5-digit scheme'' and ``5-digit'' to the 
first sentence and adding a new sentence between the first and second 
sentences, to read as follows. The remainder of the text is unchanged.]
    a. For DSCF rates, be part of a mailing of parcels sorted to 5-
digit scheme or 5-digit destinations and deposited at a designated SCF 
under L005 (or at a BMC under Exhibit 6.0); addressed for delivery 
within the ZIP Code service area of that SCF under L005; and prepared 
under M041, M045, or M710. Nonmachinable parcels sorted to 3-digit ZIP 
Code prefixes and claimed at a DSCF rate must be entered at a 
designated SCF under L005 and are subject to the surcharge in R700.1.6. 
* * *
* * * * *
2.0  PREPARATION
* * * * *

2.2  Containers

[Amend 2.2c, 2.2d, and 2.2e by adding ``3-digit sack'' after each 
occurrence of ``5-digit sack'' and adding ``3-digit pallet'' after each 
occurrence of ``5-digit pallet'' to clarify the eligibility of these 
presort levels for nonmachinable parcels.]
* * * * *

E752  Bound Printed Matter

* * * * *
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES
* * * * *
[Amend the title and text of 3.2 to add eligibility standards for 
Presorted automation flats to read as follows:]

3.2  Presorted and Automation Flats

    Presorted flats and automation 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 DSCF rates. The mail 
must be entered at the appropriate facility under 3.1.
* * * * *

E753  Combining Package Services Parcels

[Amend 1.1 by replacing ``BMC rates'' with ``basic rates.'']
* * * * *

F  Forwarding and Related Services

F000  Basic Services

F010  Basic Information

* * * * *
4.0  BASIC TREATMENT

4.1  General

[Amend 4.1 to remove references to nonstandard mail to read as 
follows:]

    Mail that is undeliverable as addressed is forwarded, returned to 
the sender, or treated as dead mail, as authorized for the particular 
class of mail. Undeliverable-as-addressed mail is endorsed by the USPS 
with the reason for nondelivery as shown in Exhibit 4.1. All 
nonmailable pieces are returned to the sender.
* * * * *
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES
* * * * *

5.2  Periodicals

    Undeliverable Periodicals (including publications pending 
Periodicals authorization) are treated as described in the chart below 
and under these conditions:
* * * * *
[Amend item 5.2e to show that the nonmachinable surcharge can be 
charged on Periodicals returned at First-Class Mail single-piece rates 
to read as follows:]

    e. The publisher may request the return of copies of undelivered 
Periodicals by printing the endorsement ``Address Service Requested'' 
on the envelopes or wrappers, or on one of the outside covers of 
unwrapped copies, immediately preceded by the sender's name, address, 
and ZIP+4 or 5-digit ZIP Code. This endorsement obligates the publisher 
to pay return postage. Each returned piece is charged the single-piece 
First-Class Mail or Priority Mail rate applicable for the weight of the 
piece, plus the nonmachinable

[[Page 18712]]

surcharge if it applies (see E130). When the address correction is 
provided incidental to the return of the piece, there is no charge for 
the correction.
* * * * *

5.3  Standard Mail

    Undeliverable Standard Mail is treated as described in the chart 
below and under these conditions:
* * * * *
[Amend item 5.3g to show that the nonmachinable surcharge is included 
in the calculation of the weighted fee for returned pieces to read as 
follows:]

    g. A weighted fee is charged when an unforwardable or undeliverable 
piece is returned to the sender and the piece is endorsed ``Address 
Service Requested'' or ``Forwarding Service Requested.'' The weighted 
fee is the single-piece First-Class Mail or Priority Mail rate 
applicable for the weight of the piece, plus the nonmachinable 
surcharge if it applies (see E130), multiplied by 2.472 and rounded up 
to the next whole cent (if the computation yields a fraction of a 
cent). The weighted fee is computed (and rounded if necessary) for each 
piece individually. Using ``Address Service Requested'' or ``Forwarding 
Service Requested'' obligates the sender to pay the weighted fee on all 
returned pieces.

[Redesignate current item 5.3h as 5.3i, and add new item 5.3h to show 
that the First-Class Mail nonmachinable surcharge is charged on some 
returned pieces to read as follows:]

    h. Returned pieces endorsed ``Return Service Requested,'' are 
charged the single-piece First-Class Mail or Priority Mail rate 
applicable for the weight of the piece, plus the nonmachinable 
surcharge if it applies (see E130).
* * * * *
6.0  ENCLOSURES AND ATTACHMENTS

6.1  Periodicals

[Amend 6.1 to show that the nonmachinable surcharge can be charged on 
Periodicals returned at First-Class Mail single-piece rates to read as 
follows:]

    Undeliverable Periodicals (including publications pending 
Periodicals authorization) with a nonincidental First-Class Mail 
attachment or enclosure are returned at the single-piece First-Class 
Mail or Priority Mail rate applicable for the weight of the piece, plus 
the nonmachinable surcharge if it applies (see E130). The weight of the 
attachment or enclosure is not included when computing the charges for 
return of the mailpiece. Undeliverable Periodicals (including 
publications pending Periodicals authorization) with an incidental 
First-Class Mail attachment or enclosure are treated as dead mail 
unless endorsed ``Address Service Requested.''

6.2  Standard Mail

[Amend 6.2 to show that the nonmachinable surcharge can be charged on 
Standard Mail returned at First-Class Mail single-piece rates to read 
as follows:]

    Undeliverable, unendorsed Standard Mail with a nonincidental First-
Class Mail attachment or enclosure is returned at the single-piece 
First-Class Mail or Priority Mail rate applicable for the weight of the 
piece, plus the nonmachinable surcharge if it applies (see E130). The 
weight of the First-Class Mail attachment or enclosure is not included 
when computing the charges for return of the mailpiece. Undeliverable, 
unendorsed Standard Mail with an incidental First-Class Mail attachment 
or enclosure is treated as dead mail.
* * * * *

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

1.0  ADDRESS CORRECTION SERVICE

1.1  Purposes

[Add a new sentence after the first sentence in 1.1 to clarify the 
conditions under which address notices are provided to read as 
follows:]

    * * * Address corrections and notices are not provided for 
customers who file a temporary change of address or for individuals at 
a business address (see F020.1.0). * * *
* * * * *

G  General Information

G000  The USPS and Mailing Standards

* * * * *

G020  Mailing Standards

* * * * *
2.0  MAILER COMPLIANCE WITH STANDARDS
[Amend 2.1 to clarify that signing a postage statement certifies that 
the mail meets all standards for the rates claimed.]

2.1  Mailer Responsibility

    A mailer must comply with all applicable postal standards. Despite 
any statement in this document or by any USPS employee, the burden 
rests with the mailer to comply with the laws and standards governing 
domestic mail. For mailings that require a postage statement, the 
mailer certifies compliance with all applicable postal standards when 
signing the corresponding postage statement. Questions on mail 
classification and special mail services may be directed to local USPS 
representatives (e.g., business mail entry managers). Rates and 
classification service centers (RCSCs) can help local post offices 
answer customer questions on mailing standards (G042 lists the areas 
served by the RCSCs).
* * * * *

G090  Experimental Classifications and Rates

G091  NetPost Mailing Online

* * * * *
4.0  POSTAGE AND FEES

4.1  Postage

[Revise 4.1 to show the new automation rate categories for First-Class 
Mail and Standard Mail.] Documents mailed during the experiment are 
eligible for the following rate categories only:
    a. First-Class Mail automation letters and cards mixed AADC rates.
    b. First-Class Mail automation flats mixed ADC rates.
    c. First-Class Mail single-piece rates.
    d. Regular Standard Mail automation letters mixed AADC rates.
    e. Regular Standard Mail automation flats basic rates.
    f. Nonprofit Standard Mail automation letters mixed AADC rates.
    g. Nonprofit Standard Mail automation flats basic rates.
* * * * *
[Delete G094 in its entirety. The Ride-Along becomes a permanent 
classification; the standards are moved to new E260.]
* * * * *

L  Labeling Lists

* * * * *

L800  Automation Rate Mailings

* * * * *
[Amend the title and the first sentence in the summary of L802 by 
adding ``Bound Printed Matter'' to read as follows:]

L802  BMC/ASF Entry--Periodicals, Standard Mail, and Bound Printed 
Matter

Summary

    L802 describes the service area by individual 3-digit ZIP Code 
prefix for mixed automation rate Periodicals, Standard Mail, and Bound 
Printed Matter mailings entered at an ASF or BMC. * * *


[[Page 18713]]


[Amend the title and the first sentence in the summary of L803 by 
adding ``Bound Printed Matter'' to read as follows:]

L803  Non-BMC/ASF Entry--Periodicals, Standard Mail, and Bound Printed 
Matter

Summary

    L803 describes the service area by individual 3-digit ZIP Code 
prefix for mixed automation rate Periodicals, Standard Mail, and Bound 
Printed Matter mailings. * * *
* * * * *

M  Mail Preparation and Sortation

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.2  Presort Levels

* * * * *
[Amend 1.2e and f by inserting ``Bound Printed Matter flats'' to read 
as follows:]
    e. 5-digit scheme carrier routes (sacks) for Periodicals flats and 
irregular parcels, Standard Mail flats and Bound Printed Matter flats: 
* * *
    f. 5-digit scheme (pallets) for Periodicals flats and irregular 
parcels, Standard Mail flats, and Bound Printed Matter flats: * * *

1.3  Preparation Instructions

    For purposes of preparing mail:
* * * * *
[Amend item 1.3b to show that a full letter tray can be anywhere 
between 75% and 100% full (the preferred default for presort software 
is 85%):]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 75% and 100% full.
* * * * *

1.4  Mailing

    Mailings are defined as:
* * * * *
[Amend item 1.4b to remove references to the upgradable preparation and 
to show that machinable and nonmachinable pieces cannot be part of the 
same mailing. Combine item 1.4c, First-Class Cards, with item 1.4b. 
Redesignate items 1.4d through 1.4f as 1.4c through 1.4e, 
respectively.]
    b. First-Class Mail. Cards and letters must be prepared as separate 
mailings except that they may be sorted together if each meets separate 
minimum volume mailing requirements. The following types of First-Class 
Mail may not be part of the same mailing despite being in the same 
processing category:
    (1) Automation rate and any other type of mail.
    (2) Presorted rate and any other type of mail.
    (3) Single-piece rate and any other type of mail.
    (4) Machinable and nonmachinable pieces.
* * * * *
[Amend redesignated item 1.4d, Standard Mail, to remove references to 
the upgradable preparation, to show that machinable and nonmachinable 
pieces cannot be part of the same mailing, and to show that ECR letter 
rate pieces and ECR nonletter rate pieces cannot be part of the same 
mailing.]
    d. Standard Mail. Except as provided in E620.1.2, the types of 
Standard Mail listed below may not be part of the same mailing. See 
M041, M045, M610, and M620 for copalletized, combined, or mixed-rate 
mailings.
    (1) Automation Enhanced Carrier Route and any other type of mail.
    (2) Automation rate and any other type of mail.
    (3) Enhanced Carrier Route and any other type of mail.
    (4) Enhanced Carrier Route letter rate pieces and Enhanced Carrier 
Route nonletter rate pieces.
    (5) Presorted rate mail and any other type of mail.
    (6) Machinable and nonmachinable pieces.
    (7) Except as provided by standard, Regular mail may not be in the 
same mailing as Nonprofit mail, and Enhanced Carrier Route mail may not 
be in the same mailing as Nonprofit Enhanced Carrier Route mail.
* * * * *

M012  Markings and Endorsements

* * * * *
2.0  MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL
* * * * *

2.2  Exceptions to Markings

[Amend item 2.2d to update the required MLOCR markings:]
    Exceptions are as follows:
* * * * *
    d. MLOCR Prepared Automation Mailings. The basic marking must 
appear in the postage area on each piece as required in 2.1a. The other 
``AUTO'' marking described in 2.1b must be replaced by the appropriate 
identifier/rate code marking described in P960 on those pieces that 
have the marking applied by an MLOCR. This seven-character marking 
provides a description of the Product Month Designator, MASS/
FASTforward System Identifier, postage payment method, and the rate of 
postage affixed for metered and precanceled stamp mail or other postage 
information for permit imprint mail.
3.0  MARKINGS--PACKAGE SERVICES
* * * * *
[Revise 3.3 to read as follows:]

3.3  Additional Bound Printed Matter Markings

    In addition to the basic marking in 3.1, each piece of Bound 
Printed Matter mailed at a presorted or carrier route rate must bear 
additional rate markings. The 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. The additional rate markings are:
    a. For Presorted rate mail, the additional required marking is 
``Presorted'' (or ``PRSRT''). For presorted flats claiming the barcoded 
discount prepared under M820, the optional marking ``AUTO'' may be used 
in place of ``Presorted'' (or ``PRSRT''). If the ``AUTO'' marking is 
not used, the automation rate flats must bear the ``Presorted'' (or 
``PRSRT'') rate marking.
    b. For carrier route rate mail, the additional required marking is 
``Carrier Route Presort'' (or ``CAR-RT SORT'').
* * * * *
4.0  ENDORSEMENTS--DELIVERY AND ANCILLARY SERVICES
* * * * *
[Remove 4.5, OCR Read Area.]
* * * * *

M020  Packages

1.0  BASIC STANDARDS
* * * * *
[Amend the title of 1.6 to include Media Mail and Library Mail to read 
as follows:]

1.6  Package Size--Bound Printed Matter, Media Mail, and Library 
Mail

[Amend 1.6 to read as follows:]
    Each logical package (the total group of pieces for a package 
destination) of Bound Printed Matter, Media Mail, and Library Mail must 
meet the applicable minimum and maximum package size

[[Page 18714]]

standards in M045, M722, M730, M740, or M820. 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. Unless otherwise noted, the maximum weight 
for packages in sacks is 20 pounds. 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 Bound Printed Matter prepared in sacks, the last physical 
package to an individual carrier route 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 title in 2.0 to show that the standards apply to all classes 
of mail.]
2.0  ADDITIONAL STANDARDS

2.1  Cards and Letter-Size Pieces

    Cards and letter-size pieces are subject to these packaging 
standards:
* * * * *
[Amend item 2.1c to remove references to the upgradable preparation for 
First-Class Mail and Standard Mail and to show that nonmachinable and 
``manual only'' pieces must be packaged to read as follows:]
    c. Packages must be prepared for mail in all less-than-full trays 
and 3-digit carrier routes trays; for nonmachinable Presorted First-
Class Mail; for nonmachinable Presorted Standard Mail; for First-Class 
Mail and Standard Mail pieces where the mailer has requested ``manual 
only'' processing; and for nonautomation Periodicals.
* * * * *

2.2  Flat-Size Pieces

[Amend 2.2 to add references to Media Mail and Library Mail to read as 
follows:]
    Packages of flat-size pieces must be secure and stable subject to 
the following:
    a. If placed on pallets, the specific weight limits in M045.
    b. If placed in sacks:
    (1) For Periodicals and Standard Mail, the specific weight and 
height limits in 1.8.
    (2) For Bound Printed Matter, the specific weight limits in M720.
    (3) For Media Mail and Library Mail, the specific weight limits in 
M730 and M740, as applicable.
* * * * *

M030  Containers

M031  Labels

* * * * *
4.0  PALLET LABELS
* * * * *
[Amend the title and contents of 4.9 for clarity.]

4.9  Barcoded Status

    Pallet labels must indicate whether the mail on the pallet is 
barcoded, or not barcoded, or both. Specific Line 2 label information 
is in M045, M920, M930, and M940.
* * * * *
5.0  SECOND LINE CODES
    The codes shown below must be used as appropriate on Line 2 of 
sack, tray, and pallet labels.

[Amend the table in 5.0 to add a second line code for manual letter-
size pieces and nonmachinable parcels and to revise the entries for 
carrier routes, letters, and machinable parcels. The entries should be 
inserted in alphabetical order to read as follows:]

------------------------------------------------------------------------
              Content type                             Code
------------------------------------------------------------------------
[Revise the code for Carrier Routes to    CR-RT or CR-RTS
 add a new code:]
Carrier Routes..........................
[Revise the code for Letters to add a     LTR or LTRS
 new code:].
Letters.................................
[Revise the entry for Machinable to       MACH
 apply to all classes and processing
 categories:].
Machinable..............................
[Add a new entry for manual processing:]  MAN or MANUAL
Manual (cannot be processed on automated
 equipment or mailer requests manual
 processing).
Nonmachinable...........................  NON MACH
------------------------------------------------------------------------

M032  Barcoded Labels

1.0  BASIC STANDARDS--TRAY AND SACK LABELS

1.1  Use

[Amend 1.1 to reorganize the section and to show that barcoded tray 
labels are required for Enhanced Carrier Route high-density and 
saturation letters. Add new ``e'' for Barcoded Bound Printed Matter 
flats.]
    Only tray labels may be used for trays; only sack labels may be 
used for sacks. Mailer-produced barcoded tray and sack labels must meet 
the standards in M032. Information on labels must be machine-printed. 
Revisions to preprinted barcoded labels (e.g., handwritten changes) are 
not permitted. Labels must be inserted completely into the label holder 
to ensure that they do not fall out during processing. The following 
types of mail must have barcoded tray or sack labels:
    a. Automation First-Class Mail, Periodicals, and Standard Mail 
letter-size and flat-size pieces.
    b. First-Class Mail flat-size pieces co-trayed under M910.
    c. Periodicals and Standard Mail flat-size pieces co-sacked under 
M910 or M920.
    d. Standard Mail Enhanced Carrier Route high-density and saturation 
letter-size pieces. (Barcoded tray labels are not required for letter-
size pieces mailed at the nonletter rate.)
    e. Barcoded Bound Printed Matter flat-size pieces.
* * * * *

Exhibit 1.3a  3-Digit Content Identifier Numbers

[Amend Exhibit 1.3a by adding new categories and Content Identifier 
Numbers. Also, in the human-readable content line for First-Class Mail 
and Standard Mail letters, replace ``LTRS''

[[Page 18715]]

with ``LTR'' and ``CR-RTS'' with ``CR-RT.'' The footnotes are 
unchanged.]

----------------------------------------------------------------------------------------------------------------
                   Class and mailing                         CIN              Human-readable content line
----------------------------------------------------------------------------------------------------------------
                    FIRST-CLASS MAIL
[For ``FCM Letters--Automation,'' in the human-readable
 content line, replace ``LTRS'' with ``LTR'' and ``CR-
 RTS'' with ``CR-RT'' for all entries. Amend the human-
 readable content line for the 5-digit carrier routes
 tray for consistency:].
    5-digit carrier routes trays.......................          264  FCM LTR 5D CR-RT BC
----------------------------------------------------------------------------------------------------------------
[For ``FCM Letters--Presorted (Basic Preparation),''
 change the title and human-readable content line
 information.]
FCM Letters--Presorted Nonmachinable (requires or
 requests manual processing):
    5-digit trays......................................          267  FCM LTR 5D MANUAL
    3-digit trays......................................          269  FCM LTR 3D MANUAL
    ADC trays..........................................          270  FCM LTR ADC MANUAL
    Mixed ADC trays....................................          268  FCM LTR MANUAL WKG
----------------------------------------------------------------------------------------------------------------
[Delete the entry for ``FCM Letters--                                 ..........................................
 Presorted(Nonautomation Processing).'']
----------------------------------------------------------------------------------------------------------------
[For ``FCM Letters--Presorted (Upgradable
 Preparation),'' change the title and human-readable
 content line information to read as follows:]
FCM Letters--Presorted Machinable:
    5-digit trays......................................          252  FCM LTR 5D MACH
    3-digit trays......................................          255  FCM LTR 3D MACH
    AADC trays.........................................          258  FCM LTR AADC MACH
    Mixed AADC trays...................................          260  FCM LTR MACH WKG
----------------------------------------------------------------------------------------------------------------
                     STANDARD MAIL
[For ``Enhanced Carrier Route Letters--Automation,'' in
 the human-readable content line, replace ``LTRS'' with
 ``LTR'' and ``CR-RTS'' with ``CR-RT'' for all entries.
 Amend the human-readable content line for the 5-digit
 carrier routes tray for consistency:]
    5-digit carrier routes trays.......................          564  STD LTR 5D CR-RT BC
----------------------------------------------------------------------------------------------------------------
[For ``Enhanced Carrier Route Letters--Nonautomation,''
 change the title and human-readable content line
 information to show that saturation and high-density
 letters must be barcoded to read as follows:]
Enhanced Carrier Route Letters--Barcoded:
    Saturation rate trays..............................          557  STD LTR BC WSS (1)
    High density rate trays............................          557  STD LTR BC WSS (1)
    Basic rate trays...................................          557  STD LTR BC LOT (1)
    5-digit carrier routes trays.......................          564  STD LTR 5D CR-RT BC
    3-digit carrier routes trays.......................          565  STD LTR 3D CR-RT BC
 
----------------------------------------------------------------------------------------------------------------
[Add the following entry for ECR letters that are not
 barcoded but are machinable (for mailers who choose
 not to barcode their machinable pieces):]
Enhanced Carrier Route Letters--Nonautomation (Not
 Barcoded but Machinable):
    Saturation rate trays..............................          569  STD LTR MACH WSS (1)
    High density rate trays............................          569  STD LTR MACH WSH (1)
    Basic rate trays...................................          569  STD LTR MACH LOT (1)
    5-digit carrier routes trays.......................          567  STD LTR 5D CR-RT MACH
    3-digit carrier routes trays.......................          568  STD LTR 3D CR-RT MACH
----------------------------------------------------------------------------------------------------------------
[Add the following entry for ECR letters that are not
 machinable (regardless of whether the pieces are
 barcoded):]
Enhanced Carrier Route Letters--Nonautomation
 (Nonmachinable):
    Saturation rate trays..............................          608  STD LTR MAN WSS (1)
    High density rate trays............................          608  STD LTR MAN WSH (1)

[[Page 18716]]

 
    Basic rate trays...................................          608  STD LTR MAN LOT (1)
    5-digit carrier routes trays.......................          609   STD LTR 5D CR-RT MAN
    3-digit carrier routes trays.......................          611  STD LTR 3D CR-RT MAN
----------------------------------------------------------------------------------------------------------------
[For ``STD Letters--Automation,'' in the human-readable
 content line, replace ``LTRS'' with ``LTR'' for all
 entries.]
----------------------------------------------------------------------------------------------------------------
[For ``STD Letters--Presorted (Basic Preparation)''
 change the title and the human-readable content line
 information to read as follows:]
STD Letters--Presorted Nonmachinable (requires or
 requests manual processing):
    5-digit trays......................................          604  STD LTR 5D MANUAL
    3-digit trays......................................          606  STD LTR 3D MANUAL
    ADC trays..........................................          607  STD LTR ADC MANUAL
    Mixed ADC trays....................................          605  STD LTR MANUAL WKG
----------------------------------------------------------------------------------------------------------------
[Delete the entry for ``STD Letters--Presorted
 (Nonautomation Processing).'']
----------------------------------------------------------------------------------------------------------------
[For ``STD Letters--Presorted (Upgradable
 Preparation),'' change the title and the human-
 readable content lines information to read as
 follows:]
STD Letters--Presorted Machinable:
    5-digit trays......................................          552  STD LTR 5D MACH
    3-digit trays......................................          555  STD LTR 3D MACH
    AADC trays.........................................          558  STD LTR AADC MACH
    Mixed AADC trays...................................          560  STD LTR MACH WKG
----------------------------------------------------------------------------------------------------------------
                   PACKAGES SERVICES
[Add the following entries for ``Bound Printed Matter
 Flats--Automation'' to read as follows:]
Bound Printed Matter Flats--Automation:
    5-digit sacks......................................          635  PSVC FLTS 5D BC
    3-digit sacks......................................          636  PSVC FLTS 3D BC
    SCF sacks..........................................          637  PSVC FLTS SCF BC
    ADC sacks..........................................          638  PSVC FLTS ADC BC
    Mixed ADC sacks....................................          639  PSVC FLTS BC WKG
----------------------------------------------------------------------------------------------------------------
[Replace the entries for Media Mail and Library Mail
 Flats to read as follows:]
Media Mail and Library Mail Flats--Presorted:
    5-digit sacks......................................          649  PSVC FLTS 5D NON BC
    3-digit sacks......................................          650  PSVC FLTS 3D NON
    ADC sacks..........................................          651  PSVC FLTS ADC NON BC
    Mixed ADC sacks....................................          653  PSVC FLTS NON BC WKG
----------------------------------------------------------------------------------------------------------------
[Replace the entries for Media Mail and Library Mail
 Irregular Parcels to read as follows:]
Media Mail and Library Mail Irregular Parcels--
 Presorted:
    5-digit scheme sacks...............................          690  PSVC IRREG 5D SCH
    5-digit sacks......................................          690  PSVC IRREG 5D
    3-digit sacks......................................          691  PSVC IRREG 3D
    ADC sacks..........................................          692  PSVC IRREG ADC
    Mixed ADC sacks....................................          694  PSVC IRREG WKG
----------------------------------------------------------------------------------------------------------------
[Replace the entries for Media Mail and Library Mail
 Machinable Parcels to read as follows:]
Media Mail and Library Mail Machinable Parcels--
 Presorted:
    5-digit scheme sacks...............................          680  PSVC MACH 5D SCH
    5-digit scheme.....................................          680  PSVC MACH 5D
    ASF sacks..........................................          682  PSVC MACH ASF
    BMC sacks..........................................          683  PSVC MACH BMC
    Mixed BMC sacks....................................          684  PSVC MACH WKG
----------------------------------------------------------------------------------------------------------------
[Add the following entry for ``Parcel Post--Irregular
 (Nonmachinable) Parcels'' to read as follows:]
    3-digit sacks......................................          691  PSVC IRREG 3D
----------------------------------------------------------------------------------------------------------------


[[Page 18717]]

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

2.4  Barcode

    The label barcode must meet these specifications:

[Amend item 2.4b to replace references to upgradable mail with 
references to machinable mail.]
    b. Information. The barcode must represent:
    (1) The 5-digit ZIP Code destination of the tray (for trays with a 
3-digit destination, this is the 3-digit ZIP Code prefix followed by 
two zeros);
    (2) The 3-digit content identifier number (CIN) applicable to the 
content of the tray in Exhibit 1.3a; and
    (3) The applicable 2-digit USPS processing code. The 2-digit 
processing code ``01'' is used for automation rate and machinable 
letters. The 2-digit processing code ``01'' also is used for First-
Class Mail automation rate flats and for First-Class Mail co-trayed 
automation rate and Presorted rate flats. The processing code ``07'' is 
used for all other mail.

M033  Sacks and Trays

* * * * *
2.0  FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL

2.1  Letter Tray Preparation

[Revise 2.1 in its entirety to reorganize and clarify the standards for 
letter trays to read as follows:]
    Letter trays are prepared as follows:
    a. Subject to availability of equipment, standard managed mail (MM) 
trays must be used for all letter-size mail, except that extended MM 
(EMM) trays must be used when available for letter-size mail that 
exceeds the inside dimensions of MM trays defined in 1.3. When EMM 
trays are not available for those larger pieces, they must be placed in 
MM trays, angled back, or placed upright perpendicular to the length of 
the tray in row(s) to preserve their orientation.
    b. Pieces must be ``faced'' (oriented with all addresses in the 
same direction with the postage area in the upper right).
    c. Each tray prepared must be filled before filling the next tray, 
with the contents in multiple trays relatively balanced. When preparing 
full trays, mailers must fill all possible 2-foot trays first; if there 
is mail remaining for the presort destination, then mailers must use a 
combination of 1-foot and 2-foot trays that results in the fewest total 
number of trays.
    d. For presort destinations that do not require full trays, pieces 
are placed in a less-than-full tray.
    e. Mailers must use as few trays as possible without jeopardizing 
rate eligibility. For instance, a mailer will never have two 1-foot 
trays to a single destination; instead, that mail must be placed in a 
single 2-foot tray. A 1-foot tray is prepared only if it is a full tray 
with no overflow; or if there is less than 1 foot of mail for that 
destination; or if the overflow from a full 2-foot tray is less than 1 
foot of mail.
    f. Each tray must bear the correct tray label.
    g. Each tray must be sleeved and strapped under 1.5 and 1.6.
    h. If a mailing is prepared using an MLOCR/barcode sorter and is 
submitted with standardized documentation, then pieces do not have to 
be grouped by 3-digit ZIP Code prefix (or by 3-digit scheme, if 
applicable) in AADC trays, or by AADC in mixed AADC trays.
* * * * *

M040  Pallets

M041  General Standards

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

5.2  Required Preparation

    These standards apply to:

[Amend item 5.2a to show that letter trays on pallets can be measured 
by linear feet in addition to the number of layers of trays.]
    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 packages, sacks, or parcels or 72 linear feet or 6 layers 
of 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.
* * * * *

5.3  Minimum Load

    These standards apply to:

[Revise item 5.3a to show that letter trays on pallets can be measured 
by linear feet in addition to the number of layers of trays.]
    a. Periodicals, Standard Mail, and Package Services (except for 
Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates). 
In a single mailing, the minimum load per pallet is 250 pounds of 
packages, parcels, or sacks; or 36 linear feet or three layers of 
letter trays. In a mailing or mailing job presented for acceptance at a 
single postal facility, one overflow pallet with less than the required 
minimum may be prepared for mail destinating in the service area of the 
entry facility; that pallet must be properly labeled under M045. 
Exceptions: There is no minimum load for pallets entered at a 
destination delivery unit if the mail on those pallets is for that 
unit's service area. For mail entered at an SCF, the SCF manager must 
authorize in writing preparation of any 5-digit, 3-digit, or SCF pallet 
containing less than the minimum required load if the mail on those 
pallets is for that SCF's service area.
* * * * *

5.6  Mail on Pallets

    These standards apply to mail on pallets:
* * * * *
[Redesignate items 5.6d through 5.6h as items 5.6e through 5.6i, 
respectively. Add new item 5.6d to show that letter trays on pallets 
are measured by linear feet or by the number of layers of trays.]
    d. For determining minimum pallet volume, mail in letter trays is 
measured in full layers of trays or in linear feet. A 2-foot tray 
equals 2 linear feet; a 1-foot tray equals 1 linear foot.
* * * * *

M045  Palletized Mailings

* * * * *

[[Page 18718]]

3.0  PALLET PRESORT AND LABELING
* * * * *

3.2  Standard Mail Packages, Sacks, Irregular Parcels, or Trays on 
Pallets

    Mailers must prepare pallets in the sequence listed below, except 
that mailings of sacks and trays must be prepared beginning with 3.2c 
(because 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, packages of Standard Mail flats may be 
palletized using the advanced presort options under M920, M930, or 
M940.
* * * * *
[Amend item 3.2c to show that pallets of carrier route letters must 
show on Line 2 of the pallet label whether the pieces are barcoded or 
not barcoded to read as follows:]
    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: For flats and irregulars, ``STD FLTS'' or ``STD 
IRREG''; followed by ``CARRIER ROUTES'' or ``CR-RTS.'' For trays, ``STD 
LTRS''; followed by ``CARRIER ROUTES'' or ``CR-RTS''; followed by 
``BC'' if the pallet contains barcoded letters; followed by ``MACH'' if 
the pallet contains machinable letters; followed by ``MAN'' if the 
pallet contains nonmachinable letters.
* * * * *
[Amend items 3.2f through 3.2j to show that pallets that trays of 
letters must indicate on Line 2 of the pallet label whether the pieces 
are barcoded (``BC''), machinable (``MACH''), or nonmachinable 
(``MAN''):]
    f. 3-Digit. Optional. May contain carrier route rate, automation 
rate, and/or Presorted rate mail.
    (1) Line 1: use L002, Column A.
    (2) Line 2: For flats and irregulars, ``STD FLTS 3D'' or ``STD 
IRREG 3D''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS 3D''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
machinable letters; followed by ``MAN'' if the pallet contains 
nonmachinable letters.
    g. SCF. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail.
    (1) Line 1: use L002, Column C.
    (2) Line 2: For flats and irregulars, ``STD FLTS SCF'' or ``STD 
IRREG SCF''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS SCF''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
machinable letters; followed by ``MAN'' if the pallet contains 
nonmachinable letters.
    h. ASF. Required, except that an ASF sort may not be required if 
using package reallocation for flats to protect the BMC pallet under 
5.0. May contain carrier route rate, automation rate, and/or Presorted 
rate mail. Sort ADC packages, trays, or sacks to ASF pallets based on 
the ``label to'' ZIP Code for the ADC destination of the package, tray, 
or sack in L004 (letters or flats) or L603 (irregular parcels). Sort 
AADC trays to ASF pallets based on the ``label to'' ZIP Code for the 
AADC destination of the tray in L801. See E650.5.0 for additional 
requirements for DBMC rate eligibility.
    (1) Line 1: use L602.
    (2) Line 2: For flats and irregulars, ``STD FLTS ASF'' or ``STD 
IRREG ASF''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS ASF''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
machinable letters; followed by ``MAN'' if the pallet contains 
nonmachinable letters.
    i. BMC. Required. May contain carrier route rate, automation rate, 
and/or Presorted rate mail. Sort ADC packages, trays, or sacks to BMC 
pallets based on the ``label to'' ZIP Code for the ADC destination of 
the package, tray, or sack in L004 (letters or flats) or L603 
(irregular parcels). Sort AADC trays to BMC pallets based on the 
``label to'' ZIP Code for the AADC destination of the tray in L801. See 
E650.5.0 for additional requirements for DBMC rate eligibility.
    (1) Line 1: use L601.
    (2) Line 2: For flats and irregulars, ``STD FLTS BMC'' or ``STD 
IRREG BMC''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail. For 
letters, ``STD LTRS BMC''; followed by ``BC'' if the pallet contains 
barcoded letters; followed by ``MACH'' if the pallet contains 
machinable letters; followed by ``MAN'' if the pallet contains 
nonmachinable letters.
    j. Mixed BMC (for sacks and trays on pallets only). Optional. May 
contain carrier route rate, automation rate, and/or Presorted rate 
mail.
    (1) Line 1: use ``MXD'' followed by the information in L601, Column 
B, for the BMC serving the 3-digit ZIP Code prefix of the entry post 
office (label to plant serving entry post office if authorized by the 
processing and distribution manager).
    (2) Line 2: For flats and irregulars, ``STD FLTS'' or ``STD 
IRREG''; followed by ``BARCODED'' or ``BC'' if the pallet contains 
automation rate mail; followed by ``NONBARCODED'' or ``NBC'' if the 
pallet contains Presorted rate and/or carrier route rate mail; followed 
by ``WKG.'' For letters, ``STD LTRS''; followed by ``BC'' if the pallet 
contains barcoded letters; followed by ``MACH'' if the pallet contains 
machinable letters; followed by ``MAN'' if the pallet contains 
nonmachinable letters; followed by ``WKG.''

[Revise title of 3.3 to read as follows and amend items a, b, c, and e 
to add BPM in the first sentence in front of flats to show that this 
sort level is for Bound Printed Matter only:]

3.3  Package Service Flats--Packages and Sacks on Pallets

* * * * *
[Revise the title of 3.4 to read as follows:]

3.4  Package Services Irregular Parcels--Packages and Sacks on 
Pallets

* * * * *
[Revise the title of 3.5 to read as follows:]

3.5  Machinable Parcels--Standard Mail and Package Services

* * * * *
[Remove 3.6, Presorted Media Mail and Library Mail.]
* * * * *
[Amend 12.0 by adding ``and 3-digit'' following each mention of 5-digit 
scheme or 5-digit and revise to read as follows:]
12.0  PARCEL POST DSCF RATES--PARCELS ON PALLETS

12.1 Basic Preparation, Parcels on Pallets

    Unless prepared under 12.2, or in sacks under M710, mail must be 
prepared for the DSCF rate as follows:
    a. General. Parcels for each SCF area must be sorted to 5-digit 
scheme, 5-digit, or 3-digit (nonmachinable) destinations on pallets. 
For purposes of this section, the term ``pallets'' includes preparation 
of parcels directly on pallets

[[Page 18719]]

and in pallet boxes on pallets. Except when prepared under 12.2, each 
5-digit scheme, 5-digit, and 3-digit pallet must meet a minimum volume 
requirement under one of the criteria in 12.2b. Machinable and 
nonmachinable pieces may be combined on the same pallet or in the same 
overflow sack when sorted to 5-digit scheme or 5-digit destinations. In 
a single mailing mailers may prepare some pallets under the minimum 
volume requirement in 12.1b(1) and some pallets under the minimum 
volume requirement in 12.1b(2). A mailing entered at a destination SCF 
facility containing pallets prepared under 12.1 also may include mail 
that is sacked for the DSCF rate under M710. Double stacking is 
permitted if the requirements of M041 are met.
    b. Minimum volume. The minimum volume per 5-digit scheme, 5-digit, 
and 3-digit pallet can be met in one of the following ways:
    (1) Pieces may be placed on 5-digit scheme, 5-digit, and 3-digit 
pallets, each containing at least 50 pieces and 250 pounds.
    (2) Pieces may be placed on 5-digit scheme, 5-digit, and 3-digit 
pallets, each having a minimum height of 36 inches of mail (excluding 
the height of the pallet) (see M041).
    c. Overflow. After filling a pallet(s) to a 5-digit scheme, 5-
digit, or 3-digit destination, any remaining pieces that do not meet 
the minimum pallet requirements may be prepared in one of the following 
ways. One or both methods may be used in a single mailing:
    (1) Placed in 5-digit scheme, 5-digit, or 3-digit overflow sacks 
(no minimum number of pieces per sack) that are labeled in accordance 
with the 5-digit scheme, 5-digit or 3-digit sacking requirements for 
the DSCF rate in M710. Overflow pieces sacked in this manner are 
eligible for the DSCF rates.
    (2) Placed on a 5-digit scheme, 5-digit, or 3-digit pallet labeled 
under 12.1d that does not meet the minimums for the DSCF rate. Overflow 
pieces palletized in this manner are not eligible for the DSCF rates 
but are eligible for the DBMC rates.
    d. 5-digit scheme pallet labeling:
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC PARCELS 5D SCH.''
    e. 5-digit pallet labeling:
    (1) Line 1: city, state, and 5-digit ZIP Code destination of 
contents.
    (2) Line 2: ``PSVC PARCELS 5D.''
    f. 3-digit pallet labeling:
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PSVC PARCELS 3D.''
    g. Separation. If sacks prepared under M710 are included in the 
same mailing as pallets prepared under this section, at the time of 
acceptance the mailer must separate sacks that are overflow from 
palletized mail from those sacks that are prepared under the provisions 
of M710.

12.2  Alternate Preparation, Parcels on Pallets

    DSCF rate mailings not prepared under 12.1 may be prepared as 
follows:
    a. General. All DSCF rate mail in the mailing must be sorted to 5-
digit-scheme, 5-digit, or 3-digit (nonmachinable) destinations under 
12.2 (i.e., mail prepared under 12.1 and mail sacked under M710 must 
not be included in a mailing prepared under 12.2). For purposes of this 
section, the term ``pallets'' includes preparation of parcels directly 
on pallets and preparation of parcels in pallet boxes on pallets. 
Machinable and nonmachinable pieces may be combined on the same pallet 
when sorted to 5-digit scheme or 5-digit destinations. Double stacking 
is permitted if the requirements of M041 are met.
    b. Minimum volume. To qualify for the DSCF rate, no pallet may 
contain fewer than 35 pieces and 200 pounds, and for the entire mailing 
the average number of DSCF rate pieces per 5-digit scheme, 5-digit, or 
3-digit (nonmachinable) must be at least 50.
    c. Overflow. After filling pallets to a 5-digit scheme, 5-digit or 
3-digit destinations, any remaining pieces that do not meet the minimum 
pallet requirements may be prepared in one of the following ways. One 
or both methods may be used in a single mailing:
    (1) Placed in 5-digit scheme, 5-digit, or 3-digit overflow sacks 
(no minimum number of pieces per sack) that are labeled in accordance 
with the DSCF sacking requirements in M710. Overflow pieces sacked in 
this manner are eligible for the DSCF rates.
    (2) Placed on a 5-digit scheme, 5-digit, or 3-digit pallet labeled 
under 12.2d that does not meet the minimums for the DSCF rate. Overflow 
pieces palletized in this manner are not eligible for the DSCF rates 
but are eligible for the DBMC rates.
    d. 5-digit scheme pallet labeling:
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC PARCELS 5D SCH.''
    (3) In the mailer area below Line 3: use the pallet ID number.
    e. 5-digit pallet labeling:
    (1) Line 1: city, state, and 5-digit ZIP Code destination of 
contents.
    (2) Line 2: ``PSVC PARCELS 5D.''
    (3) In the mailer area below Line 3: use the pallet ID number.
    f. 3-digit pallet labeling:
    (1) Line 1: use L002, Column C.
    (2) Line 2: ``PSVC PARCELS 3D.''
    (3) In the mailer area below Line 3: use the pallet ID number.
    g. Documentation. A list of each 5-digit scheme, 5-digit, and 3-
digit pallet in the mailing that qualifies for the DSCF rate must be 
submitted. The pallets in the mailing that qualify for the DSCF rate 
must be renumbered sequentially, and this pallet identification number 
must be printed below Line 3 on the pallet label. The documentation 
must list each pallet in sequential order by pallet identification 
number. For each pallet, the listing must show: the pallet 
identification number; the applicable 5-digit scheme, 5-digit, or 3-
digit destination of the pallet; the total weight of pieces on the 
pallet; the total number of pieces on the pallet; and the running total 
pieces (i.e., the number equal to the number of pieces for that pallet 
plus the sum of the pieces on all pallets listed before it). This 
documentation must not include pieces prepared in overflow sacks at the 
DSCF rates, pieces prepared on overflow pallets at the DBMC rates, or 
pieces claimed at any other rate in the mailing.
* * * * *

M050  Delivery Sequence Changes

1.0  BASIC STANDARDS
* * * * *
[Amend 1.2 to reinstate the option of placing pieces that cannot be 
sequenced in ascending order by ZIP+4 sector segments.]

1.2  Missing Addresses

    If mailpieces cannot be sequenced because an exact match for a name 
or address cannot be obtained, then these pieces may be included in a 
sequenced mailing only if they are placed behind or after the sequenced 
mail. These pieces must be sequenced alphabetically by complete street 
name, numerically for numbered streets, and then either in ascending 
order by ZIP+4 Code sector segments, or numerically in ascending order 
by primary address.
* * * * *
4.0  DOCUMENTATION

4.1  General

[Amend the first paragraph of 4.1 to clarify that signing a postage 
statement certifies that the mail meets the requirements for the rates 
claimed to read as follows:]
    The postage statement must be annotated in the ``Carrier Route 
Sequencing Date'' block on page 1. The mailer must annotate the postage 
statement to show the earliest (oldest) date of the method (in 4.1a 
through 4.1e) used to obtain sequencing

[[Page 18720]]

information for the mailing. The mailer's signature on the postage 
statement certifies that this standard has been met when the 
corresponding mail is presented to the USPS. The mailer must maintain 
documentation to substantiate compliance with the standards for carrier 
route sequencing. Unless submitted with each corresponding mailing, the 
mailer must be able to provide the USPS with documentation (if 
requested) of accurate sequencing or delivery statistics for each 
carrier route to which pieces are mailed. Acceptable forms of 
documentation are:* * *
* * * * *

M100  First-Class Mail (Nonautomation)

* * * * *

M130  Presorted First-Class Mail

1.0  BASIC STANDARDS
* * * * *
[Amend the title and contents of 1.5 to account for the new preparation 
for nonmachinable pieces.]

1.5  Nonmachinable Pieces

    Nonmachinable cards and letters must use the preparation sequence 
and tray labeling in 3.0. Nonmachinable flats must use the preparation 
sequence and tray labeling in 4.0.

[Redesignate 1.6, Co-Traying With Automation Rate Mail, as 1.7. Add new 
1.6 for the manual only option to read as follows:]

1.6  Manual Only Option

    Mailers who prefer that the USPS not automate letter-size pieces 
(including cards) must use the preparation sequence and tray labeling 
for nonmachinable pieces in 3.0. The manual only option is not 
available for flats.

[Replace section 2.0 with the preparation for cards and machinable 
letters to read as follows (this preparation is very similar to the 
current upgradable preparation). Machinable pieces are packaged only to 
maintain their orientation in the tray.]
2.0  PREPARATION--MACHINABLE LETTER-SIZE PIECES

2.1  Packaging

    Machinable pieces are not packaged, except for (see M020):
    a. Card-size pieces.
    b. All pieces in a less-than-full origin 3-digit tray.
    c. All pieces in a less-than-full mixed AADC tray.

2.2  Tray Preparation and Labeling

    Preparation sequence, tray size, and labeling:
    a. 5-digit: optional; full trays only; no overflow.
    (1) Line 1: use city, state, and 5-digit ZIP Code on mail, preceded 
for military mail by prefixes under M031.
    (2) Line 2: ``FCM LTR 5D MACH.''
    b. 3-digit: required; full trays only, except for one less-than-
full tray for each origin 3-digit(s); no overflow.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``FCM LTR 3D MACH.''
    c. AADC: required; full trays only; no overflow.
    (1) Line 1: use L801, Column B.
    (2) Line 2: ``FCM LTR AADC MACH.''
    d. Mixed AADC: required; no minimum.
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP of 
facility serving 3-digit ZIP Code prefix of entry post office, as shown 
in L002, Column C.
    (2) Line 2: ``FCM LTR MACH WKG.''
[Replace section 3.0, Upgradable Preparation, with the preparation 
instructions for nonmachinable and manual only pieces to read as 
follows:]
3.0  PREPARATION--NONMACHINABLE LETTER-SIZE PIECES

3.1  Packaging

    Packaging is required. Mailers who prefer that the USPS not 
automate letter-size pieces must identify each package with a facing 
slip on which ``MANUAL ONLY'' is printed or with a ``MANUAL ONLY'' 
optional endorsement line (see M013). Preparation sequence, package 
size, and labeling:
    a. 5-digit: required (10-piece minimum); red Label D or optional 
endorsement line (OEL); labeling is not required for pieces in full 5-
digit trays.
    b. 3-digit: required (10-piece minimum); green Label 3 or OEL.
    c. ADC: required (10-piece minimum); pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.

3.2  Exception to Packaging

    Under certain conditions, nonmachinable pieces may not need to be 
packaged (see M020.1.9).

3.3  Tray Preparation and Labeling

    Preparation sequence, tray size, and labeling:
    a. 5-digit: required; full trays only; no overflow.
    (1) Line 1: use 5-digit city, state, and ZIP Code on mail, preceded 
for military mail by prefixes under M031.
    (2) Line 2: ``FCM LTR 5D MANUAL.''
    b. 3-digit: required; full trays only, except for one less-than-
full tray for each origin 3-digit(s); no overflow.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``FCM LTR 3D MANUAL.''
    c. ADC: required; full trays only; no overflow.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``FCM LTR ADC MANUAL.''
    d. Mixed ADC: required; no minimum.
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP of 
facility serving 3-digit ZIP Code prefix of entry post office, as shown 
in L002, Column C.
    (2) Line 2: ``FCM LTR MANUAL WKG.''

[Revise the title of 4.0 to read as follows:]
4.0  PREPARATION--FLATS
* * * * *
[Redesignate 4.2 and 4.3 as 4.3 and 4.4, respectively. Add new 4.2 to 
show that flats do not have to be packaged under certain conditions:]

4.2  Exception to Packaging

    Under certain conditions, flat-size pieces may not need to be 
packaged (see M020.1.9).
* * * * *

M200  Periodicals (Nonautomation)

M210  Presort Rates

[Remove 5.0, Combining Multiple Publications or Editions. This section 
has moved to M230.]
* * * * *

M220  Carrier Route Rates

[Remove 5.0, Combining Multiple Publications or Editions. This section 
has moved to M230.]
* * * * *
[Add new M230 to read as follows:]

M230  Combining Multiple Editions or Publications of the Same Publisher

1.0  DESCRIPTION
    A combined mailing is a mailing in which two or more Periodicals 
publications or editions are merged into a single mailstream, during 
production or after finished copies are produced, and all copies of all 
the publications or editions are presorted together into packages to 
achieve the finest presort level possible for the combined mailing.
2.0  VOLUME
    More than one Periodicals publication, or edition of a publication, 
may be combined to meet the volume standard per tray, sack, or package 
for the rate claimed.

[[Page 18721]]

3.0  EACH PIECE
    Each piece must meet the basic standards in E211 and the specific 
standards for the rate claimed.
4.0  DOCUMENTATION
    Presort documentation required under P012 must also show the total 
number of addressed pieces and copies of each publication or edition 
mailed to each carrier route, 5-digit, and 3-digit destination. The 
publisher must also provide a list, by 3-digit ZIP Code prefix, of the 
number of addressed pieces and copies of each publication or edition 
qualifying for each destination rate.
5.0  SEPARATE POSTAGE STATEMENTS
    A separate postage statement must be prepared for the per pound 
postage computations for each publication or edition that is part of 
the combined mailing. The title and issue date of the publications with 
which each publication or edition was combined must be noted on, or 
attached to, the postage statements. The per piece postage computations 
for all other than preferred rate publications must be calculated on 
the postage statement for the publication containing the higher (or 
highest) amount of advertising. The per piece postage computations for 
all preferred rate publications must be calculated on the postage 
statement for the publication containing the higher (or highest) amount 
of advertising. The nonadvertising adjustment must be computed on the 
appropriate postage statement for each rate category based on the 
publication (or edition, if applicable) containing the higher (or 
highest) amount of advertising matter for that rate category.
* * * * *

M600  Standard Mail (Nonautomation)

M610  Presorted Standard Mail

1.0  BASIC STANDARDS
* * * * *
[Redesignate 1.5 and 1.6 as 1.6 and 1.7, respectively. Add new 1.5 to 
account for the new preparation for nonmachinable pieces to read as 
follows:]

1.5  Nonmachinable Pieces

    Nonmachinable cards and letters must use the preparation sequence 
and tray labeling in 3.0.

[Revise the title and contents of redesignated 1.6 to read as follows:]

1.6  Manual Only Option

    Mailers who prefer that the USPS not automate letter-size pieces 
(including cards) must use the packaging and tray preparation sequence 
for nonmachinable pieces in 3.0. The manual only option is not 
available for flats.
* * * * *
[Replace section 2.0 with the preparation for machinable cards and 
letters (this preparation is very similar to the current upgradable 
preparation). Machinable pieces are packaged only to maintain their 
orientation in the tray.]
2.0  PREPARATION--MACHINABLE LETTER-SIZE PIECES

2.1  Packaging

    Machinable pieces are not packaged, except for (see M020):
    a. Card-size pieces.
    b. All pieces in a less-than-full origin or entry 3-digit tray.
    c. All pieces in a less-than-full mixed AADC tray.

2.2  Tray Preparation and Labeling

    Only mail eligible for the 3/5 rate (i.e., 150 or more pieces for 
the 3-digit area) may be prepared in 5-digit and 3-digit trays. 
Preparation sequence, tray size, and labeling:
    a. 5-digit: optional (full trays); no overflow.
    (1) Line 1: use city, state, and 5-digit ZIP Code on mail, preceded 
for military mail by correct prefix under M031.
    (2) Line 2: ``STD LTR 5D MACH.''
    b. 3-digit: required (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MACH.''
    c. Origin 3-digit(s): required (no minimum); optional for entry 3-
digit(s) (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MACH.''
    d. AADC: required (full trays); no overflow; group pieces by 3-
digit ZIP Code prefix.
    (1) Line 1: use L801.
    (2) Line 2: ``STD LTR AADC MACH.''
    e. Mixed AADC: required (no minimum); group pieces by AADC.
    (1) Line 1: use L802 (mail entered at an ASF or BMC) or L803.
    (2) Line 2: ``STD LTR MACH WKG.''

[Replace 3.0, Upgradable Preparation, with the new preparation for 
nonmachinable pieces:]
3.0  PREPARATION--NONMACHINABLE LETTER-SIZE PIECES

3.1  Packaging

    Packaging is required. Mailers who prefer that the USPS not 
automate their pieces must identify each package with a facing slip on 
which ``MANUAL ONLY'' is printed or with a ``MANUAL ONLY'' optional 
endorsement line (see M013). Preparation sequence, package size, and 
labeling:
    a. 5-digit: required (10-piece minimum); red Label D or optional 
endorsement line (OEL); labeling is not required for pieces in full 5-
digit trays.
    b. 3-digit: required (10-piece minimum); green Label 3 or OEL.
    c. ADC: required (10-piece minimum); pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.

3.2  Exception to Packaging

    Under certain conditions, nonmachinable pieces may not need to be 
packaged (see M020.1.9).

3.3  Tray Preparation and Labeling

    Preparation sequence, tray size, and labeling:
    a. 5-digit: required (full trays); no overflow.
    (1) Line 1: use city, state, and 5-digit ZIP Code on mail, preceded 
for military mail by correct prefix under M031.
    (2) Line 2: ``STD LTR 5D MANUAL.''
    b. 3-digit: required (no minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``STD LTR 3D MANUAL.''
    c. Origin 3-digit(s): required (one-package minimum); optional for 
entry 3-digit(s) (no minimum).
    (1) Line 1, use L002, Column A.
    (2) Line 2: ``STD LTR 3D MANUAL.''
    d. ADC: required (full trays); no overflow.
    (1) Line 1, use L004.
    (2) Line 2: ``STD LTR ADC MANUAL.''
    e. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP of ADC 
serving 3-digit ZIP Code prefix of entry post office, as shown in L004.
    (2) Line 2: ``STD LTR MANUAL WKG.''
* * * * *

M620  Enhanced Carrier Route Standard Mail

* * * * *
3.0  PREPARATION--LETTER-SIZE PIECES
[Revise current 3.1 and 3.2 into a single section 3.1 and amend the 
Line 2 information to show the barcoded status:]

3.1  Required Tray Preparation

    Preparation sequence, tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    (1) Line 1: use city, state, and 5-digit ZIP Code on package, 
preceded for

[[Page 18722]]

military mail by correct prefix under M031.
    (2) Line 2:
    (a) Saturation: ``STD LTR BC WSS,'' followed by route type and 
number.
    (b) High density: ``STD LTR BC WSH,'' followed by route type and 
number.
    (c) Basic: ``STD LTR BC LOT,'' followed by route type and number.
    b. 5-digit carrier routes: required if full tray, optional with 
minimum one 10-piece package.
    (1) Line 1: use city, state, and 5-digit ZIP Code on package, 
preceded for military mail by prefix under M031.
    (2) Line 2: ``STD LTR 5D CR-RT BC.'' c. 3-digit carrier routes: 
optional with minimum one 10-piece package for each of two or more 5-
digit areas.
    (1) Line 1: use city, state, and ZIP shown in L002, Column A, that 
corresponds to 3-digit ZIP Code prefix on package.
    (2) Line 2: ``STD LTR 3D CR-RT BC.''

[Add new 3.2 to show the Line 2 information for trays containing mail 
that is machinable but is not barcoded.]

3.2  Tray Line 2 for Machinable Nonbarcoded Pieces

    For trays that contain letter-size pieces that are machinable but 
not barcoded, use ``MACH'' on Line 2 in place of ``BC.''

[Add new 3.3 to show the Line 2 information for trays containing mail 
that is nonmachinable (barcoded or not):]

3.3  Tray Line 2 for Nonmachinable Pieces

    For trays that contain letter-size pieces that are nonmachinable, 
use ``MAN'' on Line 2 in place of ``BC.''

[Add new 3.4 to show the Line 2 information for trays containing mail 
with a simplified address:]

3.4  Tray Line 2 for Pieces with Simplified Address

    For trays that contain letter-size pieces with a simplified 
address, use ``MAN'' on Line 2 in place of ``BC.''
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:

[Add new item d to show an exception to the sack minimum for saturation 
rate pieces. This standard was moved from E630.4.1.]
    d. Sacks with fewer than 125 pieces or less than 15 pounds of 
pieces may be prepared to a carrier route when the saturation rate is 
claimed for the contents and the applicable density standard is met.
* * * * *

M700  Package Services

M710  Parcel Post

* * * * *
2.0  DSCF RATE
[Amend 2.1 to add DSCF rate 3-digit nonmachinable parcels to read as 
follows:]

2.1  General

    To qualify for the DSCF rate, pieces must be for the same SCF area 
under L005 and must be prepared as follows:
    a. Sorted to optional 5-digit scheme destinations under L606, 
Column B, and 5-digit destinations, either in sacks under 2.2 or 
directly on pallets or in pallet boxes on pallets under M041 and M045. 
Pieces must be part of a mailing of at least 50 Parcel Post pieces. 
They must be entered at the designated SCF under L005 that serves the 
5-digit ZIP Code destinations of the pieces except when palletized and 
entry is required at a BMC (see Exhibit E751.6.0). The DSCF rate is not 
available for palletized mail for facilities that are unable to handle 
palletized mailings. Refer to the Drop Shipment Product available from 
the National Customer Support Center (NCSC) (see G043) and Exhibits 
E751.7.0 and E751.8.0 to determine if the facility serving the 5-digit 
destination can handle pallets. There is a charge for the Drop Shipment 
Product.
    b. Any remaining nonmachinable parcels (as defined in C700.2.0) 
sorted to 3-digit ZIP Code prefixes in L002, Column C. Machinable 
parcels may not be sorted to the 3-digit level.
* * * * *
[Amend 2.2 by redesignating ``e'' as ``f'' and adding new ``e'' and 
revising ``f'' to add sack preparation requirements for DSCF rate 
nonmachinable parcels to read as follows:]
    e. 3-digit nonmachinable sack labeling: Line 1, use L002, Column A; 
for Line 2, ``PSVC IRREG 3D.''
    f. See M045 for option to place 5-digit scheme and 5-digit DSCF 
sacks and 3-digit nonmachinable sacks on an SCF pallet.
* * * * *

M720  Bound Printed Matter

M721  Single-Piece Bound Printed Matter

1.0  BASIC STANDARDS

1.1  General

[Amend 1.1 by adding a sentence at the end for barcoded single-piece 
rate Bound Printed Matter to read as follows:]
    * * * Bound Printed Matter claiming a barcoded discount must meet 
the applicable standards in E712.
* * * * *

M730  Media Mail

[Revise 1.0 to read as follows:]
1.0  BASIC STANDARDS

1.1  General

    There are no presort, sacking, or labeling standards for single-
piece Media Mail. All mailings of Presorted Media Mail are subject to 
the standards in 2.0 through 4.0 and to these general requirements:
    a. Each mailing must meet the applicable standards in E710, E713, 
and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A Media Mail 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. 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 also are 
irregular parcels.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. Each piece claimed at Media Mail rates must be marked ``Media 
Mail'' under M012. Each piece claimed at Presorted Media Mail rates 
also must be marked ``Presorted'' or ``PRSRT'' under M012.

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 level at the time of mailing.

[Revise 2.0 to read as follows:]
2.0  PREPARATION--FLATS

2.1  Packaging

    A package must be prepared when the quantity of addressed pieces 
for a

[[Page 18723]]

required presort level reaches a minimum of 10 pieces. Smaller volumes 
are not permitted. 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 physical package must contain at least two 
addressed pieces.

2.2  Package Preparation

    Packages must be prepared and labeled in the following required 
sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility; 
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  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches the minimums specified in 2.4 or 1,000 
cubic inches. Smaller volumes are not permitted (except in mixed ADC 
sacks).

2.4  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility 
(10-piece minimum).
    (1) Line 1: use city, state, and 5-digit ZIP Code on packages, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC FLTS 5D NON BC.''
    b. 3-digit: required (20-piece minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D NON BC.''
    c. ADC: required (20-piece minimum).
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC FLTS ADC NON BC.''
    d. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP Code of 
ADC serving 3-digit ZIP Code prefix of entry post office, as shown in 
L004, Column B.
    (2) Line 2: ``PSVC FLTS NON BC WKG.''

[Add new 3.0 to read as follows:]
3.0  PREPARATION--IRREGULAR PARCELS

3.1  Packaging

    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, except 
that packaging is not required for pieces placed in 5-digit scheme 
sacks and 5-digit sacks when such pieces are enclosed in an envelope, 
full-length sleeve, full-length wrapper, or polybag and the minimum 
package volume is met. 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 physical package must contain at 
least two addressed pieces. Packaging is also 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 (specifically for each sack) the number of pieces in 
each package and their total weight.
    c. Mailers must note on the postage statement which sacking method 
was used.

3.2  Package Preparation

    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility; 
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  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 10 addressed pieces or 20 pounds, whichever 
occurs first. At the mailer's option, a sack may be prepared when the 
quantity of mail reaches 1,000 cubic inches. Smaller volumes are not 
permitted (except in mixed ADC sacks). Optional 5-digit scheme sacks 
may be prepared only when there are at least 10 addressed pieces or 20 
pounds. Smaller volumes are not permitted (except in mixed ADC sacks). 
Sacking is also subject to these conditions:
    a. Identical-weight pieces weighing 2 pounds or less must be sacked 
using the 10-piece minimum; those that weigh more must be sacked using 
the 20-pound or 1,000 cubic inch 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, mailers may sack by the 
actual piece count, mail weight for each destination, or 1,000 cubic 
inch minimum, provided that documentation can be provided with the 
mailing that shows (specifically for each sack) the number of pieces in 
each sack and their total weight.
    c. Mailers must note on the postage statement which sacking method 
was used.

3.4  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC IRREG 5D SCHEME'' or ``PSVC IRREG 5D SCH.''
    b. 5-digit: optional, but required for 5-digit rate eligibility.
    (1) Line 1: use city, state, and 5-digit ZIP Code on packages, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC IRREG 5D.''
    c. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC IRREG 3D.''
    d. ADC: required.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC IRREG ADC.''
    e. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP Code of 
ADC serving 3-digit ZIP Code prefix of entry post office, as shown in 
L004, Column B.
    (2) Line 2: ``PSVC IRREG WKG.''

[Add new 4.0 to read as follows:]
4.0  PREPARATION--MACHINABLE PARCELS

4.1  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 10 addressed pieces or 20 pounds, whichever 
occurs first. At the mailer's option, a sack may be prepared when the 
quantity of mail reaches 1,000 cubic inches. Smaller volumes are not 
permitted (except in mixed BMC sacks). Sacking also is subject to these 
conditions:
    a. Identical-weight pieces that weigh 2 pounds or less must be 
sacked using the 10-piece minimum; those that weigh more must be sacked 
using the 20-pound or 1,000 cubic inch minimum.
    b. For nonidentical-weight pieces, mailers must use either the 
minimum

[[Page 18724]]

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). Alternately, mailers may sack by the actual piece 
count, mail weight for each package destination, or 1,000 cubic inch 
minimum, 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 postage statement which sacking method 
was used.

4.2  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
    b. 5-digit: optional, but required for 5-digit rate eligibility.
    (1) Line 1: use city, state, and 5-digit ZIP Code on parcels, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC MACH 5D.''
    c. BMC: required.
    (1) Line 1: use L601, Column B.
    (2) Line 2: ``PSVC MACH BMC.''
    d. Mixed BMC: required (no minimum).
    (1) Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code of entry post office.
    (2) Line 2: ``PSVC MACH WKG.''

M740  Library Mail

[Revise 1.0 to read as follows:]
1.0  BASIC STANDARDS

1.1  General

    There are no presort, sacking, or labeling standards for single-
piece Library Mail. All mailings of Presorted Library Mail 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, E714, 
and in M010, M020, and M030.
    b. All pieces in a mailing must be within the same processing 
category as described in C050. A Library Mail 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. 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 are also 
considered irregular parcels.
    c. All pieces must be sorted to the finest extent possible under 
2.0 through 4.0 or palletized under M045.
    d. 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.

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 level at the time of mailing.
[Revise 2.0 to read as follows:]
2.0  PREPARATION--FLATS

2.1  Packaging

    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces. Smaller 
volumes are not permitted. 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 physical package must contain at 
least two addressed pieces.

2.2  Package Preparation

    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility; 
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  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches the minimums specified in 2.4 or 1,000 
cubic inches. Smaller volumes are not permitted (except in mixed ADC 
sacks).

2.4  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility 
(10-piece minimum).
    (1) Line 1, use city, state, and 5-digit ZIP Code on packages, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC FLTS 5D NON BC.''
    b. 3-digit: required (20-piece minimum).
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D NON BC.''
    c. ADC: required (20-piece minimum).
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC FLTS ADC NON BC.''
    d. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP Code of 
ADC serving 3-digit ZIP Code prefix of entry post office, as shown in 
L004, Column B.
    (2) Line 2: ``PSVC FLTS NON BC WKG.''

[Add new 3.0 to read as follows:]
3.0  PREPARATION--IRREGULAR PARCELS

3.1  Packaging

    A package must be prepared when the quantity of addressed pieces 
for a required presort level reaches a minimum of 10 pieces, except 
that packaging is not required for pieces placed in 5-digit scheme 
sacks and 5-digit sacks when such pieces are enclosed in an envelope, 
full-length sleeve, full-length wrapper, or polybag and the minimum 
package volume is met. 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 physical package must contain at 
least two addressed pieces. Packaging is also 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 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 postage statement which sacking method 
was used.

3.2  Package Preparation

    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: optional, but required for 5-digit rate eligibility; 
red Label D or optional endorsement line (OEL).
    b. 3-digit: required; green Label 3 or OEL.

[[Page 18725]]

    c. ADC: required; pink Label A or OEL.
    d. Mixed ADC: required (no minimum); tan Label MXD or OEL.

3.3  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 10 addressed pieces or 20 pounds, whichever 
occurs first. At the mailer's option, a sack may be prepared when the 
quantity of mail reaches 1,000 cubic inches. Smaller volumes are not 
permitted (except in mixed ADC sacks). Sacking is also subject to these 
conditions:
    a. Identical-weight pieces weighing 2 pounds or less must be sacked 
using the 10-piece minimum; those that weigh more must be sacked using 
the 20-pound or 1,000 cubic inch 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, mailers may sack by the 
actual piece count, mail weight for each package destination, or 1,000 
cubic inch minimum, 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 postage statement which sacking method 
was used.

3.4  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC IRREG 5D SCHEME'' or ``PSVC IRREG 5D SCH.''
    b. 5-digit: optional, but required for 5-digit rate eligibility.
    (1) Line 1: use city, state, and 5-digit ZIP Code on packages, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC IRREG 5D.''
    c. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC IRREG 3D.''
    d. ADC: required.
    (1) Line 1: use L004, Column B.
    (2) Line 2: ``PSVC IRREG ADC.''
    e. Mixed ADC: required (no minimum).
    (1) Line 1: use ``MXD'' followed by city, state, and ZIP Code of 
ADC serving 3-digit ZIP Code prefix of entry post office, as shown in 
L004, Column B.
    (2) Line 2: ``PSVC IRREG WKG.''

[Add new 4.0 to read as follows:]
4.0  PREPARATION--MACHINABLE PARCELS

4.1  Sacking

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 10 addressed pieces or 20 pounds, whichever 
occurs first. At the mailer's option, a sack may be prepared when the 
quantity of mail reaches 1,000 cubic inches. Smaller volumes are not 
permitted (except in mixed BMC sacks). Sacking also is subject to these 
conditions:
    a. Identical-weight pieces that weigh 2 pounds or less must be 
sacked using the 10-piece minimum; those that weigh more must be sacked 
using the 20-pound or 1,000 cubic inch 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). Alternately, mailers may sack by the 
actual piece count, mail weight for each package destination, or 1,000 
cubic inch minimum, 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 postage statement which sacking method 
was used.

4.2  Sack Preparation

    Sacks must be prepared and labeled in the following sequence:
    a. 5-digit scheme: optional.
    (1) Line 1: use L606, Column B.
    (2) Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
    b. 5-digit: optional, but required for 5-digit rate eligibility.
    (1) Line 1: use city, state, and 5-digit ZIP Code on parcels, 
preceded for military mail by correct prefix in M031.
    (2) Line 2: ``PSVC MACH 5D.''
    c. BMC: required.
    (1) Line 1: use L601, Column B.
    (2) Line 2: ``PSVC MACH BMC.''
    d. Mixed BMC: required (no minimum).
    (1) Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code of entry post office.
    (2) Line 2: ``PSVC MACH WKG.''

M800  All Automation Mail

M810  Letter-Size Mail

1.0  BASIC STANDARDS
* * * * *

1.2  Mailings

    The requirements for mailings are as follows:
* * * * *
[Amend items 1.2b and 1.2d to replace the automation basic rate with 
the new AADC and mixed AADC rates.]
* * * * *
    b. First-Class. A single automation rate First-Class Mail mailing 
may include pieces prepared at carrier route, 5-digit, 3-digit, AADC, 
and mixed AADC rates.
* * * * *
    d. Standard Mail. Automation carrier route pieces must be prepared 
as a separate mailing (and meet a separate minimum volume requirement) 
from pieces prepared at 5-digit, 3-digit, AADC, and mixed AADC rates.

1.3  Documentation

[Amend 1.3 to remove references to the basic rate.]
    A complete postage statement must accompany each mailing. Each 
mailing also must be accompanied by presort and rate documentation 
produced by PAVE-certified or MAC-certified software or by standardized 
documentation under P012. Exception: For mailings of fewer than 10,000 
pieces, presort and rate documentation is not required if postage at 
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. Mailers may use a single postage statement and a single 
documentation report for all rate levels in a single mailing. Standard 
Mail mailers may use a single postage statement and a single 
documentation report (with a separate summary for carrier route and a 
separate summary for all other rate levels) for both an automation 
carrier route mailing and a mailing containing pieces prepared at other 
automation rates when both mailings are submitted for entry at the same 
time. Combined mailings of more than one Periodicals publication also 
must be documented under M210 and M220. First-Class Mail and Standard 
Mail mailings prepared under the value added refund procedures or as 
combined mailings must meet additional standardized documentation 
requirements under P014 and P960.
* * * * *
2.0  FIRST-CLASS MAIL AND STANDARD MAIL
* * * * *

2.3  Tray Line 2

[In 2.3, amend the introduction and items b and c to change ``LTRS'' to

[[Page 18726]]

``LTR,'' to change ``CR-RTS'' to ``CR-RT,'' and to add ``5D'' to the 5-
digit carrier routes tray:]
* * * * *
    Line 2: ``FCM LTR'' or ``STD LTR'' and:
* * * * *
    b. 5-digit carrier routes: ``5D CR-RT BC.''
    c. 3-digit carrier routes: ``3D CR-RT BC.''
* * * * *

M820  Flat-Size Mail

[Amend Summary to include Bound Printed Matter to read as follows:]

Summary

    M820 describes the preparation standards for flat-size automation 
rate First-Class Mail, Periodicals, Standard Mail, and Bound Printed 
Matter.
1.0  BASIC STANDARDS

1.1 Standards

[Amend the first sentence of 1.1 by adding text for Bound Printed 
Matter flats to read as follows:]
    Flat-size Bound Printed Matter pieces claiming the barcoded 
discount and flat-size automation rate First-Class Mail, Periodicals, 
and Standard Mail must be prepared under M820 and the eligibility 
standards for the rate claimed.* * *

1.2  Mailings

[Amend 1.2 to replace the First-Class Mail automation basic rate with 
the new ADC and mixed ADC rates to read as follows:]
    All pieces in a mailing must meet the standards in C820 and must be 
sorted together to the finest extent required. First-Class Mail 
mailings may include pieces prepared at automation 5-digit, 3-digit, 
ADC, and mixed ADC rates. Periodicals mailings may include pieces 
prepared at automation 5-digit, 3-digit, and basic rates. Standard Mail 
mailings may include pieces prepared at automation 3/5 and basic rates. 
The definitions of a mailing and permissible combinations are in M011. 
Bound Printed Matter mailings may include presorted pieces claiming the 
barcode discount.
* * * * *

1.4  Marking

[Amend the last sentence of 1.4 by adding reference P700 to read as 
follows:]
    * * * Pieces not claimed at an automation rate must not bear 
``AUTO'' unless single-piece rate postage is affixed or a corrective 
single-piece rate marking is applied under P100, P600, or P700.
* * * * *
[Add new 6.0 for Bound Printed Matter to read as follows:]
6.0  BOUND PRINTED MATTER

6.1  Package Preparation

    Packages must be prepared and labeled in the following sequence:
    a. 5-digit: (minimum 10 pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); red Label D or optional endorsement line 
(OEL).
    b. 3-digit: (minimum 10 pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); green Label 3 or OEL.
    c. ADC: (minimum 10 pieces or 10 pounds, fewer not permitted, 
maximum weight 20 pounds); pink Label A or OEL.
    d. Mixed ADC: (no minimum, maximum weight 20 pounds); tan Label MXD 
or OEL.

6.2  Sack Preparation and Labeling

    A sack must be prepared when the quantity of mail for a required 
presort destination reaches 20 addressed pieces. Preparation sequence, 
tray size, and labeling:
    a. 5-digit: required.
    (1) Line 1: use city, state, and 5-digit ZIP Code on packages.
    (2) Line 2: ``PSVC FLTS 5D BC.''
    b. 3-digit: required.
    (1) Line 1: use L002, Column A.
    (2) Line 2: ``PSVC FLTS 3D BC.''
    c. SCF: optional.
    (1 ) Line 1: use L005, Column B.
    (2) Line 2: ``PSVC FLTS SCF BC.''
    d. ADC: required.
    (1) Line 1: use L004.
    (2) Line 2: ``PSVC FLTS ADC BC.''
    e. Mixed ADC: required.
    (1) Line 1: use ``MXD'' followed by origin facility in L802 or L803 
as appropriate.
    (2) Line 2: ``PSVC FLTS BC WKG.''
* * * * *

P  Postage and Payment Methods

P000  Basic Information

P010  General Standards

P011  Payment

1.0  PREPAYMENT AND POSTAGE DUE
* * * * *
[Amend 1.5 to replaced references to the nonstandard surcharge to the 
nonmachinable surcharge.]

1.5  Shortpaid Mail--Basic Standards

    Mail of any class, including mail indicating special services 
(except Express Mail, registered mail, and nonmachinable First-Class 
Mail), that is received at either the office of mailing or office of 
address without enough postage is marked to show the total (rounded 
off) deficiency of postage and fees. Individual such pieces (or 
quantities fewer than 10) are delivered to the addressee on payment of 
the charges marked on the mail. For quantity mailings of 10 or more 
pieces, the mailer is notified so that the postage charges may be 
adjusted before dispatch.
* * * * *
[Amend title and text of 1.8 to show that the nonstandard surcharge is 
replaced by the nonmachinable surcharge to read as follows:]

1.8  Shortpaid Nonmachinable Mail

    Shortpaid nonmachinable First-Class Mail is returned to the sender 
for additional postage.
* * * * *

P012  Documentation

* * * * *
[Amend title and text of 2.0 to add Bound Printed Matter flats to read 
as follows:]
2.0  STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, 
STANDARD MAIL AND BOUND PRINTED MATTER FLATS

2.1  Basic Standards

    For First-Class Mail, Periodicals, Standard Mail, and Bound Printed 
Matter Flats, * * *

2.2  Format and Content

    For First-Class Mail, Periodicals, Standard Mail, and Bound Printed 
Matter Flats, * * *
* * * * *

2.3  Rate Level Column Headings

    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 2.2 and shown below:
[Amend 2.3a to add the AADC and mixed AADC rates for automation letters 
and the ADC and mixed ADC rates automation for flats]
    a. Automation First-Class Mail, Periodicals, and Standard Mail:

[[Page 18727]]



------------------------------------------------------------------------
                      Rate                             Abbreviation
------------------------------------------------------------------------
 
*                  *                  *                  *
                  *                  *                  *
AADC [First-Class Mail letters/cards and         AB
 Standard Mail letters].
ADC [First-Class Mail flats]...................  AB
Mixed AADC [First-Class Mail letters/cards and   MB
 Standard Mail letters].
Mixed ADC [First-Class Mail flats].............  MB
[Amend the entry for basic as follows:]
Basic [flats]..................................  BB
 
*                  *                  *                  *
                  *                  *                  *
------------------------------------------------------------------------

* * * * *
3.0  DETAILED ZONE LISTING FOR PERIODICALS

3.1  Definition and Retention

[Amend the first sentence of 3.1 by making minor edits and adding DADC 
rates to read as follows:]
    The publisher must be able to present documentation to support the 
actual number of copies of each edition of an issue, by entry point, 
mailed to each zone, at DDU, DSCF, DADC, and In-County rates.* * *

3.2  Characteristics

    Report the number of copies mailed to each 3-digit ZIP Code prefix 
at applicable zone rates using one of the following formats:
* * * * *
[Amend the first sentence of item 3.2b by making minor edits and adding 
DADC to read as follows:]
    Report copies by zone (In-County DDU, In-County others, Outside-
County DDU, Outside-County DSCF, and Outside-County DADC) and by 3-
digit ZIP Code prefix, listed in ascending numeric order, for each 
zone.* * *

3.3  Zone Abbreviations

    Use the actual rate name or the authorized zone abbreviation in the 
listings in 2.0 and 3.2:

[Amend the table in 3.3 to include the zone abbreviation, ``ADC'' and 
rate equivalent, ``outside-county, DADC'' to read as follows:]

------------------------------------------------------------------------
         Zone abbreviation                     Rate equivalent
------------------------------------------------------------------------
 
                  *        *        *        *        *
SCF................................  Outside-County, DSCF.
ADC................................  Outside-County, DADC.
1-2 or 1/2.........................  zones 1 and 2.
 
                  *        *        *        *        *
------------------------------------------------------------------------

4.0  POSTAGE STATEMENT
* * * * *
[Revise 4.2 for clarity adding relocated P950.5.5 and 6.11. Add new 4.3 
to clarify what is required for facsimile postage statements.]

4.2  Completing Postage Statements

    Any mailing claiming a discount, and all permit imprint mailings 
must be accompanied by a postage statement completed and signed by the 
mailer. The mailer may submit a computer-generated facsimile (see 4.3). 
A change made to any postage statement requires the mailer (agent) to 
correct the postage statement accordingly and document the correction.

[Add new 4.3 as follows.]

4.3  Facsimile Postage Statements

    Facsimile postage statements must contain data and elements in 
locations as close as possible to where they appear on the USPS form. 
Data fields that do not pertain to information and rates claimed in the 
mailing and other extraneous information that appears on the USPS form 
do not have to be included. Facsimiles must include all other 
information pertaining to the mailing, including the class of mail (or 
subclass as appropriate), postage payment method (e.g., permit 
imprint), and four-digit form number (hyphen and suffix, optional). All 
parts, and line numbers within each part, must reflect those on the 
USPS form(s). In some cases, this can include fields from multiple USPS 
forms onto a single facsimile. For example: Part A, lines A5, A6, and 
total--Part A from Form 3602-R, and Part F, lines F1, F2 and total--
Part F from Form 3602-RS, can be consolidated onto a single Form 3602 
(Facsimile). Most importantly, the facsimile must fully and exactly 
reproduce the ``Certification'' and ``USPS Use Only'' fields that 
appear on the USPS form. A facsimile postage statement produced by 
software certified by the USPS Presort Accuracy Validation and 
Evaluation (PAVE) or Manifest Analysis and Certification (MAC) program 
is considered a USPS-approved form for these standards. Others may be 
approved by the entry office postmaster. Periodicals mailers authorized 
centralized postage payment (CPP) procedures receive approval from the 
New York RCSC.
* * * * *

P013  Rate Application and Computation

* * * * *
1.0  BASIC STANDARDS
* * * * *
[Revise 1.2 by adding new d and e, as follows.]

1.2  Expression

    For these standards, express:
    a. Piece counts in whole numbers.
    b. Weights in decimal pounds (e.g., 1.125 pounds) rounded as shown 
below.
    c. Postage in decimal dollars (e.g., $0.162) rounded as shown 
below.
    d. Intermediate postage figures on all permit imprint and 
Periodicals statements (rounded off) to four decimal places. On all 
postage affixed statements (rounded off) to three decimal places. An 
intermediate postage figure is defined as follows: For First Class 
Mail, Standard Mail, and Packages Services mailings, any figure on any 
line of a postage statement, with the exception of the ``Total 
Postage'' line, is an intermediate figure. For Periodicals mailings, 
any figure on any line of a Form 3541, with the exception of the 
``Total Outside County Postage,'' ``Total In-County Postage,'' and 
``Total Foreign Postage'' lines is an intermediate figure.
    e. Total postage figures (rounded off) to two decimal places. A 
total postage figure is defined as follows: For First Class Mail, 
Standard Mail, and Packages Services mailings any figure on a ``Total 
Postage'' line. For Periodicals mailings, any figure on a ``Total 
Outside County Postage,'' ``Total In-County Postage,'' and ``Total 
Foreign Postage'' line.
* * * * *

[[Page 18728]]

2.0  RATE APPLICATION--EXPRESS MAIL, FIRST-CLASS MAIL, AND PRIORITY 
MAIL
* * * * *

2.4  Priority Mail

[Amend 2.4 by replacing ``5 pound'' with ``1 pound'' to read as 
follows:]
Except under 2.5, Priority Mail rates are charged per pound or fraction 
thereof; any fraction of a pound is rounded up to the next whole pound. 
For example, if a piece weighs 1.2 pounds, the weight (postage) 
increment is 2 pounds. The minimum postage amount per addressed piece 
is the 1-pound rate. The Priority Mail rate up to 1 pound is based 
solely on weight; for pieces weighing more than 1 pound, the rates are 
based on weight and zone.

2.5  Flat Rate Envelope

[Amend 2.5 by changing ``2-pound'' to ``1-pound'' to read as follows:]
    Each addressed Express Mail flat rate envelope is charged the 
Express Mail rate applicable to a 1/2-pound piece, regardless of its 
actual weight. Each addressed Priority Mail flat rate envelope is 
charged the Priority Mail rate applicable to a 1-pound piece, 
regardless of its actual weight.

2.6  Keys and Identification Devices

[Amend 2.6 by adding ``zone rate'' to the 2-pound weight to read as 
follows:]
    Keys and identification devices weighing 13 ounces or less are 
charged First-Class Mail rates per ounce or fraction thereof in 
accordance with 2.3, plus the fee in R100.10.0. Keys and identification 
devices weighing more than 13 ounces but not more than 1 pound are 
mailed at the 1-pound Priority Mail flat rate plus the fee in 
R100.10.0. Keys and identification devices weighing more than 1 pound 
but not more than 2 pounds are subject to the 2-pound Priority Mail 
rate for zone 4 plus the fee in R100.10.0.
* * * * *
5.0  RATE APPLICATION--PACKAGE SERVICES
* * * * *

5.2  Parcel Post

[Amend 5.2 by changing ``2 pounds'' to ``1 pound'' in the last sentence 
to read as follows:]
    * * * The minimum postage rate per addressed piece is that for an 
addressed piece weighing 1 pound.

5.2  Single-Piece Bound Printed Matter

[Amend 5.3 by changing ``1.5 pounds'' to ``1 pound'' in the last 
sentence to read as follows:]
    * * * The minimum postage rate per addressed piece is that for an 
addressed piece weighing 1 pound.
* * * * *
7.0  COMPUTING POSTAGE--PERIODICALS
* * * * *
[Revise 7.7 to clarify total postage reporting by separate Outside-
County and In-County charges.]

7.7  Total Postage

    Total Outside-County postage is the sum of the per pound and per 
piece charges, and any Ride-Along charge, less all discounts, rounded 
off to the nearest whole cent. Total In-County postage is the sum of 
the per pound and per piece charges, and any Ride-Along charge, less 
all discounts, rounded off to the nearest whole cent. For mailings that 
include foreign copies, total foreign postage is the sum of the per 
piece charges, less a discount, rounded off to the nearest whole cent.
8.0  COMPUTING POSTAGE--STANDARD MAIL
* * * * *
[Revise 8.3 to include affixing any surcharge]

8.3  Computing Affixed Postage

    To compute postage to be affixed to each piece, multiply the weight 
of the piece (in pounds) by the applicable rate per pound; add the 
applicable per piece charge and any surcharge; and round the sum up to 
the next tenth of a cent. The applicable minimum per piece charge must 
be affixed if it is more than the total computed per piece postage.

[Renumber current 8.4 as 8.5. Add new 8.4 to show how to compute 
affixed postage for heavy automation and Enhanced Carrier Route 
letters.]

8.4  Computing Affixed Postage--Heavy Letters

    To compute postage to be affixed to each piece, multiply the weight 
of the piece (in pounds) by the applicable rate per pound; add the 
applicable per piece charge, subtract the heavy letter discount (see 
8.6. through 8.8); and round the sum up to the next tenth of a cent.
* * * * *
[Add new 8.6 to show how to calculate the discount for heavy automation 
letters:]

8.6  Discount for Heavy Automation Letters

    Automation letters that weigh more than 3.3 ounces but not more 
than 3.5 ounces are charged postage equal to the automation piece/pound 
rate for that piece and receive a discount equal to the corresponding 
automation nonletter piece rate (3.3 ounces or less) minus the 
corresponding automation letter piece rate (3.3 ounces or less). For 
automation ECR pieces, postage is calculated using the regular basic 
piece/pound rate and the regular basic nonletter piece rate. If a 
destination entry rate is claimed, the discount is calculated using the 
corresponding rates.

[Add new 8.7 to show how to calculate the discount for heavy 
automation-compatible ECR letters:]

8.7  Discount for Heavy ECR Letters

    Pieces that otherwise qualify for the high density or saturation 
letter rate and weigh more than 3.3 ounces but not more than 3.5 ounces 
pay postage equal to the piece/pound rate and receive a discount equal 
to the nonletter piece rate (3.3 ounces or less) minus the letter piece 
rate (3.3 ounces or less). If a destination entry rate is claimed, the 
discount is calculated using the corresponding rates.

[Add new 8.8 to show how to calculate the discount for heavy ECR 
automation basic letters:]

8.8  Discount for Heavy ECR Basic Automation Letters

    Pieces that otherwise qualify for the automation basic rate and 
weigh more than 3.3 ounces but not more than 3.5 ounces pay postage 
equal to the regular basic piece/pound rate and receive a discount 
equal to the regular basic nonletter piece rate (3.3 ounces or less) 
minus the automation basic piece rate (3.3 ounces or less). If a 
destination entry rate is claimed, the discount is calculated using the 
corresponding rates.
* * * * *

P014  Refunds and Exchanges

* * * * *
2.0  POSTAGE AND FEES REFUNDS
* * * * *

2.7  Unallowable Refunds

* * * * *
[Revise P014.2.7 by adding a new e., to include text relocated from 
P950.4.4.]
    e. Postage for any failure to provide service caused by any event 
that occurs before a PVDS shipment is deposited and accepted into the 
mailstream and becomes mail at a destination postal facility.
* * * * *

[[Page 18729]]

5.0  EXPRESS MAIL POSTAGE REFUND
* * * * *

5.2  Conditions for Refund

[Revise 5.2 to read as follows:]
    A refund request must be made within 90 days after the date of 
mailing as shown in the ``Date In'' box on Label 11. Except as provided 
in D500.1.6, a mailer may file for a postage refund only under one of 
the following circumstances.
    a. The item was not delivered or made available for claim as 
guaranteed under the applicable service purchased.
    b. The item was not delivered or made available for claim by the 
guaranteed delivery time applicable to the service purchased, and 
delivery was not attempted by the guaranteed delivery time applicable 
to the service purchased.

5.3  Refunds Not Given

[Amend 5.3 to read as follows:]
    A refund claim will not be given if the guaranteed service was not 
provided due to any of the circumstances in D500.1.6.
* * * * *

P020  Postage Stamps and Stationery

P021  Stamped Stationery

* * * * *
3.0  OTHER STATIONERY
[Amend title of 3.1 to by adding ``s'' to ``Card'' to read as follows:]

3.1  Stamped Cards

[Amend 3.1 by adding availability of stamped cards to read as follows:]
    Stamped cards are available as single stamped cards, double (reply) 
stamped cards, and in sheets of 40 for customer imprinting. Single and 
double stamped cards are 3-\1/2\ inches high by 5-\1/2\ inches long. 
Sheets must be cut to this size so that the stamp is in the upper right 
corner of each card. The USPS does not offer personalized stamped cards 
(cards imprinted with a return address).
* * * * *

P100  First-Class Mail

* * * * *
4.0  PRESORTED RATE
* * * * *

4.2  Affixed Postage

    Unless permitted by other standards or by Business Mailer Support, 
USPS headquarters, when precanceled postage or meter stamps are used, 
only one payment method may be used in a mailing and each piece must 
bear postage under one of these conditions:
* * * * *
[Amend 4.2b to change the ``nonstandard'' surcharge to the 
``nonmachinable'' surcharge to read as follows:]
    b. A precanceled stamp or the full postage at the lowest First-
Class first ounce rate applicable to the mailing job, and full postage 
on metered pieces for any additional ounce(s) or nonmachinable 
surcharge; postage documentation may be required by standard.
* * * * *
5.0  AUTOMATION RATES
* * * * *

5.2  Postage Affixed, Generally

    Unless permitted by other standards or by Business Mailer Support, 
USPS headquarters, when precanceled postage or meter stamps are used, 
only one payment method may be used in a mailing and each piece must 
bear postage under one of these conditions:

[Amend item 5.2b to change the ``nonstandard'' surcharge to the 
``nonmachinable'' surcharge to read as follows:]
* * * * *
    b. Flat-size pieces must bear enough postage to include the 
nonmachinable surcharge if applicable.
* * * * *

P200  Periodicals

1.0  BASIC INFORMATION
* * * * *

1.5  Postage Statement and Documentation

[Amend the second sentence of 1.5 by adding ``DADC'' to read as 
follows:]
    * * * The postage statement must be supported by documentation as 
required by P012 unless each piece in the mailing is of identical 
weight and the pieces are separated when presented for acceptance by 
rate, by zone (including separation by In-County and Outside-County 
rates), and by entry discount (i.e., DDU, DSCF, and DADC).* * *
* * * * *
[Redesignate 1.8 through 1.12 as 1.9 through 1.13, respectively. Add 
new 1.8 to read as follows:]

1.8  Waiving Nonadvertising Rates

    Instead of marking a copy of each issue to show the advertising and 
nonadvertising portions, the publisher may pay postage at the 
advertising zoned rates on both portions of all issues or editions of a 
Periodicals publication (except a requester publication). This option 
is not available if the rate for advertising is lower than the rate for 
nonadvertising. When the amount of advertising exceeds 75%, the copies 
provided to the postmaster must be marked ``Advertising over 75%.'' 
When the amount of advertising is 75% or under, the copies provided to 
the postmaster must be marked ``Advertising not over 75%'' on the first 
page. The entire weight of the copy must be entered on the postage 
statement in the column provided for the advertising portion. The words 
``Over 75%'' or ``Not over 75%'' must be annotated on the postage 
statement and the word ``Waived'' must be written in the space provided 
for the weight of the nonadvertising portion.
* * * * *
2.0  MONTHLY POSTAGE STATEMENT
* * * * *
[Remove 2.3, Waiving Nonadvertising Rates, and redesignate 2.4 as 2.3.]
* * * * *

P600  Standard Mail

* * * * *
2.0  PRESORTED AND ENHANCED CARRIER ROUTE RATES

2.1 Identical-Weight Pieces

[Amend 2.1 to include a reference to surcharges to read as follows:]
    Mailings of identical-weight pieces may have postage affixed to 
each piece at the exact rate for which the piece qualifies, or each 
piece in the mailing may have postage affixed at the lowest rate 
applicable to pieces in the mailing or mailing job. Alternatively, a 
nondenominated precanceled stamp may be affixed to every piece in the 
mailing or mailing job, or each piece may bear a permit imprint. If 
exact postage is not affixed, all additional postage and surcharges 
must be paid at the time of mailing with an advance deposit account or 
with a meter strip affixed to the required postage statement. If exact 
postage is not affixed, documentation meeting the standards in P012 
must be submitted to substantiate the additional postage unless the 
pieces are identical weight and separated by rate when presented for 
acceptance.

[Amend 2.2 to show that when affixing postage, heavy letters must have 
full postage affixed to every piece in the mailing.]

[[Page 18730]]

2.2  Nonidentical-Weight Pieces

    Postage for nonidentical-weight pieces subject to the minimum per 
piece rates may be paid by meter stamps, precanceled stamps, or 
precanceled stamped envelopes. Mailings of nonidentical-weight pieces 
subject to the piece/pound rates may have postage paid by permit 
imprint (if the mailer is authorized by Business Mailer Support) or by 
meter or precanceled stamps (if each piece has the full postage 
affixed). Alternatively, except for heavy automation and Enhanced 
Carrier Route letters, the mailer may affix the per piece rate to each 
piece and pay the pound rate for the mailing through an advance deposit 
account. Under this alternative, the mailer must provide a postage 
statement for each payment method and mark each piece ``Pound Rate Pd 
via Permit,'' in the postage meter indicium or ad plate or other means 
that ensures a legible endorsement. For mailings of nonidentical-weight 
pieces, ``nonidentical'' must be shown as the weight of a single piece 
on the applicable postage statement; other entries must be completed as 
directed.
* * * * *

P900  Special Postage Payment Systems

P910  Manifest Mailing System (MMS)

* * * * *
3.0  KEYLINE
* * * * *

Exhibit 3.3a  Rate Category Abbreviations--First-Class Mail

[Amend Exhibit 3.3a by removing the entry for automation basic and 
adding entries for the new AADC, ADC, mixed AADC, and mixed ADC rates.]

------------------------------------------------------------------------
                Code                            Rate category
------------------------------------------------------------------------
AB.................................  Automation AADC.
AB.................................  Automation ADC.
MB.................................  Automation Mixed AADC.
MB.................................  Automation Mixed ADC.
------------------------------------------------------------------------

Exhibit 3.3b  Rate Category Abbreviations--Standard Mail

[Amend Exhibit 3.3a by adding entries for the new AADC and mixed AADC 
rates and revising the entries for automation basic and basic:]

------------------------------------------------------------------------
                Code                            Rate category
------------------------------------------------------------------------
BB.................................  Automation Basic
BS.................................  Basic
AB.................................  Automation AADC
MB.................................  Automation Mixed AADC
------------------------------------------------------------------------

* * * * *
[P950 is revised in its entirety to clarify standards for PVDS. In 
addition, current P950.4.4, which contained standards regarding 
refunds, is relocated to P014.2.7. With the elimination of four 
(separate) Standard Mail Consolidated Postage Statements, and the 
addition of a single Form 3602-C, Consolidated Postage Statement 
Supplement used with typical Standard Mail postage statements, the 
separate postage reporting standards in P950 are no longer needed. Also 
removed was redundant information that appears elsewhere. This revision 
does not substantially change PVDS standards.]

P950  Plant-Verified Drop Shipment (PVDS)

Summary

    P950 describes the purpose, program participation, liability, and 
options.
1.0  DESCRIPTION

1.1  Purpose

    Plant-verified drop shipment (PVDS) enables origin verification and 
postage payment for shipments transported by a mailer (or third party) 
at the mailer's expense on the mailer's own or contracted vehicle, to 
destination USPS facilities for acceptance as mail. The mailings may be 
prepared for deposit at a destination entry rate, or they may be 
claimed at the applicable rates from the destination entry facility.

1.2  Function

    Under PVDS:
    a. Mailings are verified at origin by USPS employees assigned to a 
detached mail unit (DMU) at a mailer's plant or at the business mail 
entry unit (BMEU) at the origin post office serving the mailer's plant. 
The shipments are then released for transportation to destination USPS 
facilities.
    b. For Periodicals, postage is paid at a valid original entry or 
additional entry post office, serving the mailer's plant, unless an 
alternative postage payment method is authorized.
    c. For Standard Mail and Package Services, postage and fees are 
paid under a valid permit at the post office serving the mailer's 
plant, or as designated by the district manager.
    d. The shipment is deposited at the destination USPS facility, by 
the mailer or the mailer's agent, where it is verified and accepted as 
mail by USPS employees and released for processing.

1.3  Other Mailings

    The following mailings must be verified, accepted, and paid for at 
the destination USPS facility:
    a. Periodicals mailings not verified at origin under PVDS or under 
the Centralized Postage Payment System (see P200). The destination USPS 
facility must be a valid original entry or additional entry post office 
if mailings are submitted there for postal verification.
    b. Standard Mail and Package Services mailings not verified and 
paid for at origin under PVDS. Mailers must have a valid permit (and 
fees) at the destination USPS facility for postage payment.

1.4  Dates

    The postage statement may be submitted before or at the time a 
shipment is presented to the origin post office DMU or BMEU. The date 
shown by the mailer and the post office round stamp date on the postage 
statement and Form 8125 represents the date the origin post office DMU 
or BMEU verified the shipment and cleared it for dispatch by the mailer 
to the destination USPS facility. It does not necessarily represent the 
date the USPS accepts the PVDS at the USPS destination facility as 
mail.
2.0  PROGRAM PARTICIPATION

2.1  Mailer Responsibility

    A mailer participating in PVDS must comply with P950. If the mailer 
does not meet these requirements, the mailer may be prohibited from 
participating in PVDS by the local postmaster. Any mailer denied a 
request for PVDS may file an appeal under G020.

2.2  Verification at Mailer's Plant

    Before PVDS verification can be performed at the mailer's plant, 
the mailer must have either a USPS plant load authorization for that 
plant or a postage payment agreement with the USPS that establishes a 
detached mail unit (DMU) at that plant. The DMU must be separate from 
the mailer's activities, in an enclosed, secure, and safe work area 
with a telephone. The work area must be approved by the USPS. The 
mailer may submit a letter to the postmaster serving the plant and 
request PVDS verification at the plant. The postmaster may agree to the 
mailer's request to verify PVDS shipments at the plant on an as-needed 
basis, if an approved DMU is established and staffing can be 
accommodated.

[[Page 18731]]

2.3  Verification at Origin BMEU

    PVDS verification can be performed at the origin business mail 
entry unit (BMEU) under these conditions:
    a. There is no detached mail unit (DMU) at the mailer's plant.
    b. The mailer is in the service area of the post office where the 
PVDS is to be verified and where postage is to be paid, unless another 
postal facility is designated by the district manager.
    c. Each vehicle contains only one mailer's shipment(s), each 
physically separated.
    d. A completed postage statement and Form 8125 accompanies each 
PVDS (or segment, if the PVDS is contained in more than one vehicle).
    e. If an alternate method of paying postage with permit imprint is 
used, in addition to d., (additional) required documentation must 
accompany each PVDS (or segment, if the PVDS is contained in more than 
one vehicle).
    f. The PVDS can be physically verified at the origin BMEU. 
Shipments to be verified may not be wrapped or otherwise prepared if a 
presort and postage verification cannot be performed without destroying 
the physical integrity of the shipment.
    g. The BMEU has enough space and staff to handle verification, and 
scales to calculate per piece and gross weights are available. If the 
post office serving the mailer's plant lacks resources, another postal 
facility may be designated by the district manager.
    h. The mailer must transport all shipments to the post office, 
unload them for verification. When cleared for dispatch, reload the 
shipments back onto the mailer's vehicle for transportation to the 
destination USPS facility.

2.4  Periodicals

    Periodicals postage must be paid at the post office verifying the 
copies or as designated by the district. Advertising postage is zoned 
from the destination USPS facility where deposited and accepted as mail 
(or from the facility where the Express Mail or Priority Mail drop 
shipment destinates). The publisher must ensure that sufficient funds 
are on deposit to pay for all shipments before their release. (A 
publisher authorized under an alternative postage payment system must 
pay postage under corresponding standards.)

2.5  Standard Mail and Package Services

    The mailer must pay any applicable permit fees, mailing fees, and 
postage for Standard Mail and Package Services PVDS at either the post 
office serving the mailer's plant or the post office that does BMEU 
verification as designated by the district. If permit imprints are used 
to pay postage, the mailer must ensure that sufficient funds are on 
deposit to pay for all shipments before their release. For Nonprofit 
Standard Mail rates, a valid authorization must be on file at the post 
office where postage is paid. No permit, fees, or authorizations are 
required at the destination USPS facility where PVDS mailings are 
deposited.

2.6  Postage Statement--Periodicals

    The mailer must submit a Form 3541 for each edition of each issue 
of each publication prepared for deposit at each destination USPS 
facility, when the corresponding copies are presented to the DMU or the 
post office BMEU for verification. When required by the USPS, the 
mailer must submit consolidated postage statements and a postage 
statement register.

2.7  Postage Statement--Standard Mail

    At the time mail is presented for verification, the mailer must 
submit an appropriate Form 3602 representing all the pieces from the 
mailing job and Form 3602-C (or postage statement register) for all 
PVDS verified at the mailer's DMU or the post office BMEU. The mailer 
must enter the required information on Form 3602-C for each PVDS to be 
deposited at each destination USPS facility, in lieu of providing a 
separate Form 3602 for each PVDS.

2.8  Postage Statement--Package Services

    At the time mail is presented for verification, the mailer must 
submit an appropriate postage statement for each PVDS mailing destined 
for each destination USPS facility, When required by the USPS, the 
mailer must submit consolidated postage statements and a postage 
statement register.

2.9  Form 8125 and Form 8125-C

    Form 8125 is used to report a single PVDS that the mailer will 
transport from origin to a destination USPS facility. Computer-
generated Form 8125-C, (format available at www.usps.com), provides for 
reporting multiple PVDS mailings that are prepared by an individual 
mailer and that are cleared at origin on the same day for entry at a 
single destination USPS facility on the same vehicle. See 2.11. The 
mailer must submit a completed Form 8125 (signed and dated by the DMU 
or BMEU) for each PVDS, to the destination USPS facility. The form must 
be submitted in duplicate, or in triplicate if the mailer desires a 
signed and dated copy returned to its representative when depositing 
the mail at the destination USPS facility. Form 8125 is not required 
for PVDS sent via Express Mail or Priority Mail drop shipment.

2.10  Facsimile Forms 8125 and 8125-C

    Facsimile Forms 8125 may be used in lieu of the USPS form. Formats 
must be approved in advance by the district manager of Business Mail 
Entry or designee. Formats must include all required information, 
including the correct title (preceded by the word ``facsimile'') and 
edition date, in locations as close as possible to where they appear on 
the USPS form. Data fields that do not pertain to information relating 
to the PVDS, and other extraneous information that appear on the USPS 
form, do not have to be included. Form 8125-C must always be computer-
generated. Form 8125-C, may omit the ``Number of Pieces'' and ``Piece 
Weight'' columns for mailings prepared in sacks, trays, or on pallets 
if there is sufficient information for the origin post office and 
destination USPS facility to identify the mailings and to compare the 
information on the form, with the physical mail. The mailer must report 
the number of pieces in each mailing on Form 8125-C if the mailings 
consist of individual mailpieces that are not prepared in containers 
(e.g., bedloaded parcels). For mailings consisting of identical weight 
pieces, mailers should report the piece weight where possible.

2.11  Mailer Transport of PVDS

    Using any means of transportation, including Express Mail or 
Priority Mail drop shipment, the mailer must transport PVDS mailings 
from origin to the destination USPS facility. The mailer must not 
transport PVDS mailings on the same vehicle with shipments not entered 
as PVDS. For Standard Mail and Package Services PVDS, the mailer must 
meet the scheduling standards for mail deposit at destination USPS 
facilities. If a vehicle contains mail paid at Parcel Select rates, the 
applicable standards for scheduling of deposits and unloading of 
vehicles apply to any other mail on the same vehicle for the same 
destination USPS facility. Any material classified as hazardous under 
C023 may not be carried in the same vehicle as PVDS mailings.

2.12  Separation of PVDS Mailings

    When a vehicle contains more than one PVDS for a single destination 
USPS facility, the shipments must be

[[Page 18732]]

separated to allow reconciliation with each accompanying Form 8125. 
Vehicles containing shipments for multiple destination USPS facilities, 
must be kept physically separated. Where applicable, a single Form 8125 
that identifies all the mail for a single facility must be prepared for 
a shipment of copalletized or combined mailings.
3.0  LIABILITY
    The mailer assumes all responsibility and liability for any loss or 
damage to PVDS before they are deposited and accepted as mail at 
destination USPS facilities, including third party transportation.
4.0  STANDARD MAIL DOCUMENTATION

4.1  SAME DAY

    All mailings or segments of the same job submitted for verification 
and release on the same day under PVDS must be reported on a single 
postage statement and Form 3602-C (or postage statement register), or 
on computer media under Multiple Entry Point Processing System (MEPPS).

4.2  Documentation

    In addition to the documentation required in P012, the mailer must 
also submit the documentation below at the time the first mailing 
identified on Form 3602-C is presented for verification:
    a. Form 3602-C, which serves as the postage statement register, 
along with the appropriate postage statement. All mailing volumes, 
weights, and postage for each rate category are entered on the postage 
statement and is used to debit the mailer's account for permit imprint 
mailings and to enter data on postage-affixed mailings.
    b. A separate Form 8125 for each PVDS listed on Form 3602-C (or 
postage statement register). Each PVDS must be identified with a unique 
statement number (e.g., the date and a sequential three-digit suffix) 
on the Form 3602-C (or postage statement register) and the 
corresponding Form 8125, as appropriate.
    c. A separate postage statement showing the mailing post office as 
the same office as post office of PVDS origin for any portion of a job 
accepted by the local verifying office under a standard plant load 
arrangement. Plant load mailings are not considered a PVDS, and are not 
reported on Forms 3602-C and 8125.
5.0  PACKAGE SERVICES PVDS OPTION

5.1  General Standards

    Under this option, in addition to the individual postage statements 
required for each Package Services mailing, the mailer may be required 
to submit postage statement registers and consolidated postage 
statements for PVDS mailings. A single, unique USPS mailing number must 
be on all related individual postage statements and postage statement 
register listing these individual statements, and the associated 
consolidated postage statement. When a mailer is required to submit 
consolidated postage statements, the information on these statements is 
used to debit the mailer's account.

5.2  Individual Postage Statements

    The mailer must produce and submit a complete postage statement for 
each mailing for each destination USPS facility when the mailing is 
presented for verification and postage payment. In addition to the 
information required on all individual postage statements, if the 
mailer is required to submit consolidated postage statements (for three 
or more entry post offices) for debiting of the advance deposit 
account, each individual postage statement must include a uniquely 
assigned postage statement sequence number that must not exceed nine 
digits. The numbers must be sequential within a job or mailing cycle 
for mailings verified, paid for, and cleared for dispatch on the same 
day. The statements must also include a unique USPS mailing number 
corresponding to the number on the related postage statement register 
and consolidated postage statement.

5.3  Postage Statement Register

    A postage statement register is a computer-generated line item 
listing of all individual postage statements for PVDS permit imprint 
mailings verified and released for dispatch on a single day from a job 
or mailing cycle. All postage statements listed on a postage statement 
register, must be represented by a corresponding consolidated postage 
statement. The total postage charge on the postage statement register 
must be identical with the total postage charge on the corresponding 
consolidated statement. The following information must appear on each 
postage statement register:
    a. At the top of the first page the endorsement ``Register of 
Postage Statements''; name and location of the mailing agent; date 
mailings are verified and cleared for dispatch; the permit imprint 
number; the unique USPS mailing number corresponding to the number on 
related postage statements; and the related consolidated statement.
    b. Each line item must include (based on the individual postage 
statement on that line) the unique postage statement sequence number; 
destination USPS facility; and, for that statement, total postage, 
weight, and number of pieces.
    c. The sum of the total postage charges must appear with total 
weight, and total pieces must be listed from each postage statement. 
The total postage charge on the register must match total postage 
charge on the related consolidated statement.
    d. If necessary, manual corrections may be made to the postage 
statement register listing the data from any revised individual 
statement. These corrections must be documented by the DMU, and the 
corrected register must be signed and dated by both the mailer and the 
USPS representative approving the changes. The changes on the register 
must be reflected on the associated consolidated postage statement.

5.4  Submitting Register

    The mailer must submit the postage statement register to the DMU 
before or when presenting the first individual mailing on the register 
to the DMU for verification and dispatch.

5.5  Consolidated Postage Statement

    The consolidated postage statement assembles data from the 
individual postage statements representing permit imprint mailings 
verified, paid for, and released for dispatch on a single day from a 
job or mailing cycle. The consolidated statements are used to debit the 
mailer's account. The following information must be identical for each 
individual statement consolidated onto a single (consolidated) postage 
statement:
    a. Mailing date.
    b. Name and location of mailing agent.
    c. Processing category.
    d. Permit imprint number.
    e. Job or mailing cycle description.
    f. Unique USPS mailing number corresponding to the number on 
related individual postage statements.

5.6  Consolidated Postage Statement

    The consolidated postage statement must be a computer-generated 
facsimile similar in format to the appropriate USPS postage statement. 
The mailer must sign and date the consolidated statement. Certain data 
elements not on the individual postage statements must be reflected on 
the consolidated statement, including the range of unique individual 
statement sequence numbers,

[[Page 18733]]

the number of individual statements represented, and the endorsement 
``Consolidated Postage Statement.'' Other data elements on individual 
statements, such as each post office of deposit for PVDS mailings, are 
not shown on the consolidated statement. Each individual statement must 
contain a USPS mailing number that corresponds to the USPS mailing 
number on the related consolidated statement.

5.7  Calculating and Reporting Data

    Each field on the consolidated postage statement represents the sum 
total of the figures in that field from the individual postage 
statements. The figures reported on the consolidated statement must be 
rounded in accordance with P013. All fields containing data on the 
individual statements must be rolled up to the consolidated statement. 
The total postage on the consolidated statement must be the sum of the 
total postage for all individual postage statements. This total is used 
to debit the mailer's account.

5.8  Submitting Statement

    The mailer must submit the consolidated postage statement to the 
DMU at or before the time the last individual postage statement it 
represents is submitted to the DMU for the day's mailing.

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

* * * * *
3.0  PRODUCING THE COMBINED MAILING

3.1  Mailer Quality Control

    Before merging different pieces into a combined presorted mailing, 
the mailer must have quality control procedures to ensure that:
* * * * *
[Amend item i to clarify which markings must appear on mailpieces:]
    i. When markings are applied by an MLOCR, they properly show the 
applicable identifier/rate code described in 3.2 that specifies the 
product month designator, MASS/FASTforward system identifier, the 
method of postage payment, and the rate of postage affixed for metered 
and precanceled stamp mail or other postage information for permit 
imprint mail. These markings must be linked by the computer system to 
the rate entered by the mailer when the pieces are run through the 
MLOCR.

[Amend 3.2 to show how markings are applied to pieces in a combined 
mailing and to add new codes for First-Class Mail and Standard Mail:]

3.2  Rate and Postage Marking

    The following markings must be applied to each piece in the mailing 
when markings are applied by an MLOCR. These seven-character markings 
provide the automation rate marking information and additional 
information including the product month designator, MASS/FASTforward 
(FF) system identifier, manufacturer code, and rate marking 
information. The product month designator is the first character 
position and represents the product month of the ZIP+4 file installed 
with the system's lookup engine responsible for the ZIP+4 assignment. 
Each product month is designated by a character ``A'' through ``L'' 
(with ``A'' meaning January, ``B'' meaning February, etc.). The MASS/FF 
System Identifier is characters 2 through 4 and represents the 
certified system identifier responsible for the ZIP+4 assignment. There 
is a one-to-one relationship between the certified system serial number 
and the assigned identifier. The manufacturer code is the fifth 
character and is assigned at the manufacturer's discretion with one 
exception: the character ``Z'' is assigned when the mailpiece contains 
a delivery point barcode in the address block and the MLOCR does not 
perform a lookup but simply reproduces the address block barcode. The 
rate marking is represented in the last two characters according to the 
chart below. The applicable marking must appear on each mailpiece in 
one of the locations authorized under M012.
    a. First-Class Mail.

------------------------------------------------------------------------
                Rate marking
---------------------------------------------  Rate and postage category
        Letters                 Flats
------------------------------------------------------------------------
P1....................  F1                    Barcoded 1-ounce Permit
                                               Imprint.
P2....................  F2                    Barcoded 2-ounce Permit
                                               Imprint.
P3....................  F3                    Barcoded 3-ounce Permit
                                               Imprint.
P4....................  F4                    Barcoded 4-ounce Permit
                                               Imprint.
                        F5                    Barcoded 5-ounce Permit
                                               Imprint.
                        F6                    Barcoded 6-ounce Permit
                                               Imprint.
                        F7                    Barcoded 7-ounce Permit
                                               Imprint.
                        F8                    Barcoded 8-ounce Permit
                                               Imprint.
                        F9                    Barcoded 9-ounce Permit
                                               Imprint.
                        FA                    Barcoded 10-ounce Permit
                                               Imprint.
                        FB                    Barcoded 11-ounce Permit
                                               Imprint.
                        FC                    Barcoded 12-ounce Permit
                                               Imprint.
                        FD                    Barcoded 13-ounce Permit
                                               Imprint.
M5....................  MF                    Barcoded 5-Digit Meter
                                               Postage Affixed.
M3....................  MT                    Barcoded 3-Digit Meter
                                               Postage Affixed.
MA....................  MD                    Barcoded AADC Meter
                                               Postage Affixed.
MM....................  MX                    Barcoded Mixed AADC Meter
                                               Postage Affixed.
MP....................  MP                    Presorted Meter Postage
                                               Affixed.
S1....................  ....................  Precanceled $0.15 Stamp
                                               Affixed (card)
S1....................  ....................  Precanceled $0.23 Stamp
                                               Affixed.
S2....................  ....................  Precanceled $0.25 Stamp
                                               Affixed.
------------------------------------------------------------------------

    b. Standard Mail (letters only).

------------------------------------------------------------------------
          Rate  marking                  Rate and postage category
------------------------------------------------------------------------
PI...............................  Barcoded Regular Permit Imprint.
NI...............................  Barcoded Nonprofit Permit Imprint.
M5...............................  Barcoded 5-Digit Meter Regular
                                    Postage Affixed.
N5...............................  Barcoded 5-Digit Meter Nonprofit
                                    Postage Affixed.
M3...............................  Barcoded 3-Digit Meter Regular
                                    Postage Affixed.
N3...............................  Barcoded 3-Digit Meter Nonprofit
                                    Postage Affixed.
MA...............................  Barcoded AADC Meter Regular Postage
                                    Affixed.
NA...............................  Barcoded AADC Meter Nonprofit Postage
                                    Affixed.
MM...............................  Barcoded Mixed AADC Meter Regular
                                    Postage Affixed.
NM...............................  Barcoded Mixed AADC Meter Nonprofit
                                    Postage Affixed.
M8...............................  Presorted \3/5\ Meter Regular Postage
                                    Affixed.
N8...............................  Presorted \3/5\ Meter Nonprofit
                                    Postage Affixed.
M9...............................  Presorted Basic Meter Regular Postage
                                    Affixed.
N9...............................  Presorted Basic Meter Nonprofit
                                    Postage Affixed.
SR...............................  Precanceled Regular Rate Stamp
                                    Affixed.
SN...............................  Precanceled Nonprofit Stamp Affixed.
------------------------------------------------------------------------

* * * * *

S  Special Services

S000  Miscellaneous Services

S010  Indemnity Claims

* * * * *
2.0  GENERAL FILING INSTRUCTIONS
* * * * *

[[Page 18734]]

2.12  Payable Express Mail Claims

[Amend items 2.12a, 2.12a(4), and 2.12b, by replacing $500 with $100. 
No other changes to text.]
* * * * *

S020  Money Orders and Other Services

1.0  ISSUING MONEY ORDERS
* * * * *

1.2  Purchase Restrictions

    A postal customer may buy multiple money orders at the same time, 
in the same or differing amounts, subject to these restrictions:

[Amend item 1.2a by increasing the maximum amount of a single money 
order from $700 to $1,000 to read as follows:]
    a. The maximum amount of any single money order is $1,000.
* * * * *

S500  Special Services for Express Mail

1.0  AVAILABLE SERVICES
* * * * *

1.5  Insurance and Indemnity

    Express Mail is insured against loss, damage, or rifling, subject 
to these standards:
* * * * *
[Amend item 1.5c by changing ``$500'' to ``$100'' to read as follows:]
    c. Merchandise insurance coverage is provided against loss, damage, 
or rifling and is limited to a maximum liability of $100. (Additional 
insurance under 1.6 may be purchased up to a maximum coverage of $5,000 
for merchandise valued at more than $100.) Nonnegotiable documents are 
insured against loss, damage, or rifling, up to $100 per piece, subject 
to the maximum limit per occurrence as defined in S010.
* * * * *

1.6  Additional Insurance

[Amend the first sentence of 1.6 by replacing ``$500'' with ``$100'' to 
read as follows:]
    Additional insurance, up to a maximum coverage of $5,000, may be 
purchased for merchandise valued at more than $100 sent by Express 
Mail. * * *
* * * * *

S900  Special Postal Services

S910  Security and Accountability

S911  Registered Mail

1.0  BASIC INFORMATION

1.1  Description

[Add the following sentence at the end of 1.1 to read as follows:]
    * * * Delivery status information for a registered mail item can be 
determined via the Internet at www.usps.com by entering the article 
number shown on the mailing receipt.
* * * * *

S912  Certified Mail

1.0  BASIC INFORMATION

1.1  Description

[Add the following sentence after the first sentence in 1.1. The 
remainder of the text is unchanged.]
    * * * Delivery status information for a certified mail item can be 
determined via the Internet at www.usps.com by entering the article 
number shown on the mailing receipt. * * *
* * * * *

S918  Delivery Confirmation

1.0  BASIC INFORMATION
* * * * *

1.2  Eligible Matter

[Amend 1.2 by adding First-Class Mail parcels and limiting Package 
Services to parcels to read as follows:]
    Delivery Confirmation service is available for First-Class Mail 
parcels, Priority Mail items, Standard Mail pieces subject to the 
residual shape surcharge (electronic option only), and Package Services 
parcels. For the purposes of adding Delivery Confirmation service, a 
First-Class Mail or Package Services parcel must meet the definition in 
C100.5.0 or C700.1.0h, as appropriate.
* * * * *

S919  Signature Confirmation

1.0  BASIC INFORMATION
* * * * *

1.2  Eligible Matter

[Amend 1.2 by adding First-Class Mail parcels and limiting Package 
Services to parcels to read as follows:]
    Signature Confirmation is available for First-Class Mail parcels, 
Priority Mail items, and Package Services parcels. For the purposes of 
adding Signature Confirmation service, a First-Class Mail or Package 
Services parcel must meet the definition in C100.5.0 or C700.1.0h, as 
appropriate.
* * * * *

S922  Business Reply Mail (BRM)

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

3.1  Postage

[Amend 3.1 by changing ``5 pounds'' to ``1 pound.'' No other changes to 
text.]
* * * * *
    The adopted rates and fees for the R Module follow:

BILLING CODE 7710-12-P

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

Neva Watson,
Attorney, Legislative.
[FR Doc. 02-8928 Filed 4-9-02; 3:08 pm]
BILLING CODE 7710-12-C