[Federal Register Volume 68, Number 39 (Thursday, February 27, 2003)]
[Rules and Regulations]
[Pages 9006-9009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-4418]


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POSTAL SERVICE

39 CFR Part 111


Label Standards for Combined or Copalletized Periodicals Mailings

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule clarifies when it is permissible to use the 
designation ``NEWS'' rather than the designation ``PER'' on Line 2 (the 
content line) of labels that identify sacks, trays, and pallets 
containing copies of Periodicals publications prepared in combined 
mailings or in copalletized mailings.
    Combined mailings and copalletized mailings 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 final rule allows mailers to 
prepare and consolidate more than one Periodicals publication or 
edition of a publication into a single production mailstream.
    This final rule also clarifies mailing standards for identifying 
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.

EFFECTIVE DATE: March 6, 2003.

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: In this rulemaking, the Postal Service 
announces the adoption of standards initially proposed on October 30, 
2002 in the Federal Register (67 FR 66094-66096) for determining when 
to use ``NEWS''--a designation for ``newspaper''--and ``PER''--a 
designation for the class name ``Periodicals''--as part of the 
information on Line 2 (the content line) of sack, tray, and pallet 
labels used for combined mailings and copalletized mailings.
    This final rule allows mailers to prepare and consolidate more than 
one Periodicals publication or edition of a publication into a single 
production mailstream by providing the following standards for the 
application of the ``NEWS'' and ``PER'' designations in such cases:
    (1) If at least 51% of the total number of copies (not number of 
addressed pieces) in the combined mailing or in the copalletized 
mailing can qualify for ``NEWS'' treatment, then all containers or 
pallets in such a mailing are labeled ``NEWS'' on Line 2, unless the 
mailer chooses to use ``PER.''
    (2) If less than 51% of the total number of copies in the combined 
mailing or in the copalletized mailing can qualify for ``NEWS'' 
treatment, then all containers or pallets in such a mailing are labeled 
``PER'' on Line 2.

``NEWS'' and ``PER'' Designations

    Domestic Mail Manual (DMM) D210 states that the Postal Service does 
not guarantee the delivery of Periodicals publications within a 
specified time. Where practicable, Periodicals publications, whether 
designated ``NEWS'' or ``PER,'' receive expeditious handling in 
distribution, dispatch, transportation, and delivery.
    Publications labeled ``NEWS'' receive newspaper treatment if 
published

[[Page 9007]]

weekly or more often or if authorized such treatment as of March 1, 
1984. In general, such publications include daily or weekly newspapers 
and newsmagazines published and distributed locally or nationally.
    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 for containers, as specified in DMM 
M031.1.7, M031.4.11, and M032.1.3 stipulate that the ``NEWS'' 
designation may be used on labels for sacks, trays, and 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.
    All other publications use ``PER''--designation for the class name 
``Periodicals''--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 ``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 CIN series is for those 
publications that are eligible to use ``NEWS,'' and the second series 
is for those publications that are not eligible to use ``NEWS'' and 
must use ``PER.'' Each series contains nearly 50 different CINs to meet 
all possible rate combinations available and all permitted containers.
    It should be pointed out, however, that the use of ``NEWS'' is 
optional for those publications eligible to use that designation. A 
publisher, for example, who issues and distributes publications 
eligible for the ``NEWS'' designation and other publications not 
eligible for ``NEWS'' has the flexibility to label all containers as 
``PER'' in order to achieve greater production efficiencies (and 
greater postage savings) if combined mailings or copalletized mailings 
are prepared.
    On the other hand, the same publisher following mailing standards 
before this final rule did not have the flexibility of using the 
``NEWS'' designation for all containers in a combined mailing or 
copalletized mailing under any condition. This final rule provides 
limited conditions that permit the use of ``NEWS'' for combined 
mailings and copalletized mailings consisting of publications eligible 
for ``NEWS'' and those not eligible for that designation.

Combined and Copalletized Mailings

    Mailing standards have been introduced over the years to promote 
the consolidation of different Periodicals publications or different 
editions of the same publication into larger volume mailings. These 
standards, however, have not prevented customers from combining copies 
in containers 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.
    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. For Periodicals mailers, the primary benefit is 
greater postage savings.

Comments

    The Postal Service requested in its proposed rule published on 
October 30, 2002, in the Federal Register (67 FR 66094-66096) that 
comments on the proposed labeling standards for Periodicals combined 
mailings and copalletized mailings be submitted by November 29, 2002. 
Comments were received from only one interested party: a publisher of a 
biweekly publication.
    The publisher, whose publication is issued every two weeks, 
expressed concern about the extension of newspaper or ``NEWS'' 
treatment to publications that are not eligible for such treatment 
under the long-standing standards presented in the DMM if those 
publications were mailed separately and not included as part of a 
combined mailing or a copalletized mailing. The commenter also inquired 
about the number of publications permitted to use ``NEWS'' on container 
labels. Furthermore, the publisher wanted to know how many publications 
that enjoyed ``NEWS'' treatment were published less frequently than 
once a week and received such treatment as a result of an authorization 
issued on March 1, 1984, or earlier, as provided in the DMM.
    Postal Service records show, as of December 13, 2002, that 35,695 
publications were authorized Periodicals mailing privileges. Of this 
total, 10,259 or nearly 29 percent are published weekly or more 
frequently. The Postal Service maintains no centralized records, 
however, that indicate whether a publication that is eligible to use 
``NEWS'' actually uses that designation or ``PER.'' Moreover, there is 
no national system of records that indicates which publications are 
eligible to use ``NEWS'' based on authorizations permitted on or before 
March 1, 1984. Postmasters of the various authorized original offices 
would have access to that specific information, which is outside the 
scope of this rulemaking.
    Most of the weekly or more frequently published publications fall 
into two categories: small and large local newspapers and large 
national newsmagazines and similar news publications. In both 
categories, the use of combined mailings or copalletized mailings is 
limited in potential scope. For example, local newspapers often have 
sufficient volumes and densities to achieve lower postage rates and 
destination discounts without being combined or copalletized with other 
publications. As a consequence, only a small percentage of those 
publications authorized ``NEWS'' treatment are likely to be combined 
with those publications not authorized such treatment.
    This final rule, however, affords publishers the additional 
flexibility of combining and copalletizing Periodicals mailings 
whenever warranted by production efficiencies, postage savings, and 
improved service. Publishers of Periodicals publications that are 
generally not eligible for ``NEWS'' treatment can now determine whether 
it is advantageous to be combined or copalletized with other 
publications eligible for such treatment. This is an option for which 
publications such as the one issued by the commenter previously could 
not be considered.
    The publisher commenting on the proposed rule also believed that 
the reasoning behind the use of the ``NEWS'' designation was to ensure 
that time-sensitive publications were processed and delivered in a 
consistent and timely manner. He believed that factors other than the 
frequency of publication should be considered when determining whether 
a publication is time-sensitive and eligible for the ``NEWS'' 
designation for mail processing and delivery. The publisher noted that 
the adoption of the proposed standards would extend that privilege to 
publications that were perhaps not time-sensitive whereas publications 
such as his publication, which he stated was issued 26 times a year and 
which he

[[Page 9008]]

maintained was time-sensitive in content, would not benefit from the 
proposed standard.
    Although the Postal Service does not guarantee the delivery of 
Periodicals publications within a specified time, it handles all such 
publications, whether designated ``NEWS'' or ``PER,'' as expeditiously 
as possible in distribution, dispatch, transportation, and delivery. 
There are few differences between the ways in which the Postal Service 
handles publications designated ``NEWS'' and ``PER.'' In general, those 
designated ``NEWS'' are handled first to ensure timely processing and 
dispatch. Despite that difference, the Postal Service fully supports 
the invaluable role Periodicals publications play in keeping the 
American public informed and enlightened. As a consequence, the Postal 
Service makes every possible attempt to provide similar handling for 
publications designated ``PER'' to ensure timely and consistent 
delivery. The final rule does provide publishers of publications not 
authorized newspaper treatment, including the publication issued by the 
commenter, the option of being combined or copalletized with those 
publications that are authorized ``NEWS'' treatment.
    As a clarification about what constitutes time-sensitive 
publications, the proposed rule did not address that issue or attempt 
to discuss or consider criteria other than frequency of publication 
that would need to be applied for determining the use of ``NEWS'' and 
``PER.'' Since this issue is outside the scope of this rulemaking, the 
changes discussed in the proposed rule were based on practical 
operational reasons stemming from mail production that combines 
publications eligible for ``NEWS'' with those eligible only for 
``PER.'' In view of that situation, mailers and publishers requested 
standards that specified the criteria under which those two 
designations could be used.
    After full consideration of the comments received and for the 
reasons cited above, the Postal Service believes it appropriate to 
adopt the proposed rule for the use of the ``NEWS'' and ``PER'' 
designations for combined mailings and copalletized mailings.

List of Subjects in 39 CFR Part 111

    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:

E Eligibility

* * * * *

E200 Periodicals

* * * * *

E230 Carrier Route Rates

[Remove 4.0.]
* * * * *

M Mail Preparation and Sortation

M000 General Preparation Standards

* * * * *

M030 Containers

M031 Labels

* * * * *
1.0 SACK AND TRAY LABELS
* * * * *

[Revise 1.7 to read as follows:]

1.7 Periodicals Publications

    Except as provided in M230.2.0 for combined mailings, Periodicals 
publications must use one of the following for Line 2 class 
information:
    a. ``PER.''
    b. ``NEWS'' if published weekly or more often or if authorized 
newspaper treatment as of March 1, 1984.
* * * * *
4.0 PALLET LABELS
* * * * *

[Revise 4.11 to read as follows:]

4.11 Periodicals Publications

    Except as provided in M045.8.0 for copalletized mailings, 
Periodicals publications must use one of the following for Line 2 class 
information:
    a. ``PER.''
    b. ``NEWS'' if published weekly or more often or if authorized 
newspaper treatment as of March 1, 1984.
* * * * *

M032 Barcoded Labels

1.0 BASIC STANDARDS--TRAY AND SACK LABELS
* * * * *

[Revise 1.3b to read as follows:]

1.3 Content Line (Line 2)

    The content line must meet these standards:
* * * * *
    b. Periodicals. Except as provided in M045.8.0 for copalletized 
mailings and in M230.2.0 for combined mailings, Periodicals 
publications must use one of the following for Line 2 class 
information:
    (1) ``PER.''
    (2) ``NEWS'' if published weekly or more often or if authorized 
newspaper treatment as of March 1, 1984.
* * * * *

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,'' unless the mailer 
chooses to use ``PER.''
    (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

    A Periodicals combined mailing may be prepared using either one of 
these methods:

[[Page 9009]]

    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 
appropriate minimum volume requirements in M210, M220, M810, or M820 
apply 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,'' unless the mailer chooses to use 
``PER.''
    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 show the total 
number of addressed pieces and total number of copies for each 
publication and each edition, if applicable, 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 each edition, if 
applicable, claimed at any destination entry and pallet discounts.

2.5 Postage Statements

    Postage statements for a combined mailing must be prepared as 
follows:
    a. Copy weight and advertising percentage determine whether 
separate postage statements are required for editions of the same 
publication:
    (1) If the copy weight and advertising percentage for all editions 
of a publication are the same, all the editions may be reported on the 
same postage statement or each edition may be reported on a separate 
postage statement.
    (2) If either the copy weight or the advertising percentage is 
different for each edition of a publication, each edition must be 
reported on a separate postage statement.
    b. 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 except as provided in 
2.5a. 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.
    c. 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 except as provided in 
2.5a. 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 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.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 03-4418 Filed 2-26-03; 8:45 am]
BILLING CODE 7710-12-P