[Federal Register Volume 67, Number 210 (Wednesday, October 30, 2002)]
[Proposed Rules]
[Pages 66094-66096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-27500]


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POSTAL SERVICE

39 CFR Part 111


Label Standards for Combined or Copalletized Periodicals Mailings

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes revisions to the Domestic Mail 
Manual (DMM) that would clarify when it is permissible to use the 
designation ``NEWS'' rather than the class designation ``PER'' on Line 
2 (the content line) of labels that identify sacks, trays, and pallets 
containing copies of Periodicals publications or editions in combined 
mailings or in copalletized mailings.
    Current label standards in DMM M031.1.7 provide that ``NEWS'' may 
be used on labels for sacks, trays, or pallets for a Periodicals 
publication only if either one of the following two conditions can be 
met:
    (1) The Periodicals publication is published weekly or more 
frequently.
    (2) The Periodicals publication has been continuously authorized 
such newspaper treatment since March 1, 1984 or earlier, regardless of 
publication frequency.
    Combined mailings and copalletized mailings, however, often consist 
of copies that would be eligible for the designation ``NEWS'' on the 
container label and other copies that would be eligible only for the 
designation ``PER'' on the container label. This proposed rule would 
provide the following standards for the application of these two 
designations in such cases:
    [sbull] If at least 51% of the total number of copies (not number 
of addressed pieces) in the combined or copalletized mailing can 
qualify for ``NEWS'' treatment, then all containers or pallets in such 
a mailing are labeled ``NEWS.''
    [sbull] If less than 51% of the total number of copies in the 
combined or copalletized mailing can qualify for ``NEWS'' treatment, 
then all containers or pallets in such a mailing are labeled ``PER.''
    This proposed revision is prompted by changes to mailing standards 
evolving since 1991 that have added options so that mailers can prepare 
and consolidate larger volumes of Periodicals mail into a single 
production mailstream. These consolidations represent an effective 
means for Periodicals mailers and the Postal Service to improve 
customer service, promote greater production efficiencies, reduce the 
number of containers used to prepare mailings, and stabilize rates by 
eliminating additional mail processing steps. The Postal Service 
therefore is proposing a special provision for labeling consolidated 
Periodicals mailings.
    This proposed rule would also clarify DMM E230 to identify the two 
different methods under which a Periodicals combined mailing may be 
prepared and to note the requirements for submitting postage statements 
under each method.

DATES: Submit comments on or before November 29, 2002.

ADDRESSES: Mail or deliver written comments to the Manager, Mail 
Preparation and Standards, U.S. Postal Service, 1735 N. Lynn Street, 
Room 3025, Arlington, VA 22209-6038. Written comments may be submitted 
also via fax to 703-292-4058. Copies of all written comments will be 
available for inspection and photocopying between 9 a.m. and 4 p.m., 
Monday through Friday, at the Postal Service Headquarters Library, 475 
L'Enfant Plaza SW., 11th Floor North, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Neil Berger at (703) 292-3645, Jane 
Stefaniak at (703) 292-3548, or Marc McCrery at (202) 268-2704.

SUPPLEMENTARY INFORMATION: ``NEWS''--a designation for ``newspaper''--
is printed as part of the information on Line 2 (the content line) of 
sack, tray, and pallet labels. That information line generally 
identifies class of mail, mail processing category (such as letter-size 
mail or flat-size mail), presort level (such as 5-digit or 3-digit), as 
well as automation or nonautomation status (such as barcoded or 
nonbarcoded), or type of carrier route sortation, as applicable.
    For Periodicals publications, these container labels are affixed by 
the mailer to pallets or inserted into label holders attached to sacks 
and trays to identify and distinguish ``PER'' publications and ``NEWS'' 
publications. For those subscribing to ``NEWS'' publications, the 
information and articles presented within those publications has an 
important value that requires both timeliness and predictability of 
delivery.

Use of ``NEWS'' and ``PER'' Designations

    For this purpose, the ``NEWS'' designation helps the Postal Service 
ensure consistent service and handling for such Periodicals 
publications from entry into the mailstream, through successive 
operations in mail processing, to delivery to the intended recipient.
    Current label standards in DMM M031.1.7 provide that ``NEWS'' may 
be printed on labels for sacks, trays, or pallets for a Periodicals 
publication only if either one of the following two conditions is met:
    (1) The Periodicals publication is published weekly or more 
frequently.
    (2) The Periodicals publication has been continuously authorized 
such newspaper treatment since March 1, 1984, or earlier, regardless of 
publication frequency.
    ``PER''--designation for the class name ``Periodicals''--is printed 
as part of the information on Line 2 (the content line) of mail 
processing labels. These labels are affixed by the mailer to pallets or 
inserted into label holders attached to sacks and trays to identify 
Periodicals publications that do not meet either of the conditions 
required for the use of the ``NEWS'' designation.
    The use of these two distinct designations is carried forward for 
all container labeling, with two separate but parallel series of three-
digit content identifier numbers (CINs). One series is for those 
publications qualified to use ``NEWS,'' and the second series is for 
those publications that must use ``PER.'' Each series contains nearly 
50 different CINs to meet all possible rate combinations available and 
all permitted containers.

Combined and Copalletized Mailings

    Mailing standards have been introduced over the years to promote 
the consolidation of different Periodicals publications or different

[[Page 66095]]

editions of the same publication into larger volume mailings. These 
standards, however, have not prevented customers from combining copies 
labeled as ``PER'' with copies labeled as ``NEWS'' as a way to improve 
the depth of sort and to reduce the overall number of containers 
prepared.
    Although current standards specify when a Periodicals publication 
may be classified and labeled as ``NEWS'' and when it must be labeled 
as ``PER,'' language does not exist to specify the labeling designation 
to be used when these two types are combined or copalletized.
    The Postal Service is proposing use of the designation ``NEWS'' on 
the content line for sack, tray, or pallet labels for combined or 
copalletized mailings when at least 51% of the total number of copies 
in such mailings can qualify for that designation under DMM M031.1.7.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act [5 U.S.C. of 553(b), (c)] regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
public comment on the following proposed revisions to the Domestic Mail 
Manual, incorporated in the Code of Federal Regulations. See 39 CFR 
111.1.

List of Subject in 39 CFR Part 111

    Administrative Practice and Procedure, Postal Service.

PART 111--[AMENDED]

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

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

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

M Mail Preparation and Sortation

M000 General Preparation Standards

* * * * *

M040 Pallets

* * * * *

M045 Palletized Mailings

* * * * *
    [Revise heading of 8.0 to read as follows:]
8.0 COPALLETIZED FLAT-SIZE PIECES-PERIODICALS OR STANDARD MAIL
* * * * *
    [Amend 8.2 by revising 8.2a, adding new 8.2b, and redesignating 
current 8.2b as 8.2c to read as follows:]

8.2 Periodicals

    Additional standards are as follows:
    a. Periodicals eligible for preferred rates (In-County, Nonprofit, 
Classroom, and Science-of-Agriculture) may be combined with Periodicals 
eligible for Outside-County rates.
    b. All pallets in a copalletized mailing are identified on the 
content line (Line 2) of the label with only ``NEWS'' (see M031) or 
``PER'' as the class designation under these conditions:
    (1) If at least 51% of the total number of copies in the 
copalletized mailing can qualify for ``NEWS'' treatment, then all 
pallets in such a mailing are labeled ``NEWS.''
    (2) If less than 51% of the total number of copies in a 
copalletized mailing can qualify for ``NEWS'' treatment, then all 
pallets in such a mailing are labeled ``PER.''
* * * * *
    [Revise M230 by amending heading of M230; by amending 1.0; and by 
redesignating and amending current 2.0 as 2.2, current 3.0 as 2.1, 
current 4.0 as 2.4, and current 5.0 as 2.5 to read as follows:]

M230 Combining Multiple Editions or Publications

1.0 DESCRIPTION

1.1 Purpose

    Periodicals publications may be prepared as a combined mailing by 
merging copies either during production or after finished copies are 
produced to achieve the finest presort level possible or to reduce the 
per piece charge.

1.2 Methods

    Periodicals combined mailing may be prepared using either one of 
these following methods:
    a. Individually addressed copies of different editions of a 
Periodicals publication (one title) or individually addressed copies of 
different Periodicals publications (more than one title) are merged and 
sorted together to obtain a finer presort level.
    b. Two or more copies of different Periodicals publications (two or 
more titles) are placed within the same mailing wrapper and presented 
as one addressed piece to a single recipient to reduce the per piece 
charge.
2.0 BASIC STANDARDS

2.1 Eligibility and Mail Preparation

    Each publication in a combined mailing must meet the basic 
eligibility standards in E211 and the specific standards for the rate 
claimed. In addition, the combined mailing must meet the eligibility 
and mail preparation standards for the rate claimed.

2.2 Minimum Volume

    For combined mailings prepared under 1.2a, more than one 
Periodicals publication, or edition of a publication, may be combined 
to meet the required minimum volume per package, sack, or tray for the 
rate claimed. For combined mailings prepared under 1.2b, the minimum 
volume requirements in M210, M220, M810, or M820 apply, as applicable, 
for the rate claimed.

2.3 Labeling

    All sacks or trays in a combined mailing are labeled the same, as 
either ``NEWS'' (see M031) or as ``PER,'' depending on which of the 
following conditions is met:
    a. If at least 51% of the total number of copies in the combined 
mailing can qualify for ``NEWS'' treatment, then all sacks or trays in 
such a mailing are labeled ``NEWS.''
    b. If less than 51% of the total number of copies in a combined 
mailing can qualify for ``NEWS'' treatment, then all sacks or trays in 
such a mailing are labeled ``PER.''

2.4 Documentation

    Presort documentation required under P012 must also show the total 
number of addressed pieces and total number of copies for each 
publication, and if applicable, each edition in the combined mailing 
claimed at the carrier route, 5-digit, 3-digit, and basic rates. The 
publisher must also provide a list, by 3-digit ZIP Code prefix, of the 
number of addressed pieces for each publication, and if applicable, 
each edition claiming any destination entry and pallet discounts.

2.5 Postage Statements

    Postage statements for a combined mailing must be prepared as 
follows:
    a. For a combined mailing prepared under 1.2a, a separate postage 
statement that claims all applicable per piece and per pound charges 
must be prepared for each publication or edition. The mailer must 
annotate on, or attach to, each postage statement, the title and issue 
date of each publication or edition included in the combined mailing 
and indicate that the pieces were prepared as part of a combined 
mailing under 1.2a.
    b. For mailings prepared under 1.2b, a separate postage statement 
claiming the applicable per pound charges must be prepared for each 
publication or edition in the combined mailing. The mailer must 
annotate on, or attach to, each postage statement, the title and

[[Page 66096]]

issue date of each publication or edition included in the combined 
mailing and indicate that the copies were prepared as part of a 
combined mailing under 1.2b. The per piece charges must be claimed as 
follows:
    (1) If all copies in a combined mailing prepared under 1.2b are 
eligible for the Classroom or Nonprofit discount, the per piece charges 
must be claimed only on the postage statement for the publication that 
contains the highest amount of advertising.
    (2) If all copies in a combined mailing prepared under 1.2b are not 
eligible for the Classroom or Nonprofit discount, the per piece charges 
must be claimed only on the postage statement for the publication that 
contains the highest amount of advertising.
    (3) If a portion of the copies in a combined mailing prepared under 
1.2b are eligible for the Classroom or Nonprofit discount and a portion 
are not eligible for those discounts, the per piece charges must be 
claimed only on the postage statement for the publication that contains 
the highest amount of advertising and is not eligible for the Classroom 
or Nonprofit discount. The Classroom or Nonprofit per piece discount 
must not be claimed.
* * * * *
    An appropriate amendment to 39 CFR 111 to reflect the changes will 
be published if the proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-27500 Filed 10-29-02; 8:45 am]
BILLING CODE 7710-12-P