[Federal Register Volume 68, Number 98 (Wednesday, May 21, 2003)]
[Proposed Rules]
[Pages 27760-27767]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-12719]


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POSTAL SERVICE

39 CFR Part 111


Customized MarketMail TM

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: On March 14, 2003, 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 the establishment of Customized 
MarketMail TM as a minor classification change. ThePRC 
designated this filing as Docket No. MC2003-1.
    In view of this filing, the Postal Service proposes to amend 
current mailing standards in the Domestic Mail Manual (DMM) that would 
permit mailers to mail irregular-shaped and nonrectangular-shaped 
Regular Standard Mail and Nonprofit Standard Mail pieces, including 
pieces that are \1/4\ inch thick or less. Such pieces would be limited 
to the nonletter basic rate categories in the Standard Mail Regular and 
Nonprofit subclasses.
    Current mailing standards require that any mailpiece that is \1/4\ 
inch thick or less may not be mailed if the piece is not rectangular in 
shape. This ban on nonrectangular letter-size mail and, in some cases, 
nonrectangular flat-size mail has limited the options available to 
businesses and various organizations that might wish to reach existing 
or potential customers with advertising messages and designs--including 
the shape of the mailpiece--that are more creative than those now 
permitted under Postal Service mailing standards.
    Customized MarketMail (CMM) would significantly overcome this 
limitation under controlled circumstances that would ensure minimal 
impact on Postal Service operations, while allowing mailers the 
latitude to target a specific audience with highly individualized 
mailpiece designs. More creative designs could encourage greater 
customer interest and response rates to promotions, advertising, or 
other types of communications.

[[Page 27761]]


DATES: Submit comments on or before June 5, 2003.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, ATTN: Neil Berger, U.S. Postal Service, 1735 N. Lynn Street, 
Room 3025, Arlington, VA 22209-6038. Written comments may also be 
submitted 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: Garry A. Rodriguez, (212) 613-8748, 
New York Rates and Classification Service Center; or Neil Berger, (703) 
292-3645, Mailing Standards.

SUPPLEMENTARY INFORMATION: A basic requirement for mailability in 
Domestic Mail Classification Schedule (DMCS) Sec.  6020 (and Domestic 
Mail Manual (DMM) Sec.  C010.1.1) is that ``[a]ll items, other than 
keys and identification devices, which are 0.25 inch thick or less must 
be rectangular in shape, at least 3.5 inches in width, and at least 5 
inches in length.'' Administrative rulings issued by the Postal Service 
have interpreted and further clarified that the term ``rectangular'' 
implies that rectangular mailpieces must have four right-angle corners, 
four straight and regular edges, and no holes or other voids within 
their dimensions.
    Mailpieces that are \1/4\ inch thick or thinner typically meet the 
dimensional standards for ``letter-size mail'' or ``flat-size mail.'' 
These two mail processing categories represent both the vast majority 
of mailpieces sorted and distributed in mail processing facilities and 
virtually all mail sorted into cases and delivered by Postal Service 
carriers.
    The requirement that mail must be rectangular within certain 
dimensions for the typical letter-size or flat-size mailpieces was 
established to ensure that the Postal Service could efficiently handle 
and deliver such mail, whether by automated, mechanized, or manual 
means.
    CMM items would differ from other letter-size mail and flat-size 
mail that is \1/4\ inch thick or less in two significant aspects. 
First, CMM items could be nonrectangular or irregular in shape. Second, 
such mail would be required to bypass all Postal Service handling 
between the mailer's plant (or point of origin) and the post office 
delivery unit. CMM items would therefore not be expected or required to 
be compatible with mechanical or automated processing because their 
entry profile was specifically developed so that CMM pieces would 
bypass mail processing operations designed for fairly standardized, 
rectangular-shaped mail.

CMM Verification and Entry

    At the mailer's option, CMM items would have to be presented for 
postage verification at the origin office under existing plant-verified 
drop shipment (PVDS) procedures as defined in DMM P950, prepared as 
Express Mail or Priority Mail drop shipment standards under DMM M072, 
or taken directly to a destination Postal Service facility with a 
business mail entry unit as a presorted mailing subject to the 
requirements in DMM E610.8.0.
    Under the PVDS option, current standards for a 200-piece minimum 
volume would apply only to the entire PVDS mailing job rather than to 
the quantity for each destination delivery unit (DDU). Normally, the 
DDU is the facility where the mail would be distributed to and cased 
for delivery by the corresponding mail carrier or, for noncarrier 
offices, the facility where the mail is distributed into post office 
boxes. Transportation to each destination would be either on a vehicle 
owned or contracted by the mailer, or it would be through the use of 
existing Express Mail or Priority Mail drop shipment standards in DMM 
D072.

CMM Preparation

    Each CMM mailing would be subject to the current minimum volume 
requirement of 200 pieces for presorted Standard Mail mailpieces only. 
There would be, however, no minimum volume requirements for packaging 
or containerization because all mail processing operations would be 
bypassed.
    Packaging of CMM pieces would be required for all types of 
containers used in order to maintain mailpiece orientation, inhibit 
movement of the pieces, and ensure stability in transit. At the same 
time, packaging would help protect the individual mailpieces from 
damage. The number of pieces in each package and the method of 
packaging would be at the mailer's discretion, subject to applicable 
standards for suitable materials and package sizes in DMM M020.
    CMM would be required to be prepared in containers as appropriate 
to the volume of mail destined for the DDU. Equipment such as sleeved 
letter trays, Express Mail and Priority Mail containers (i.e., Postal 
Service pouches, sacks, envelopes, and boxes) or envelopes or boxes 
supplied by the mailer would be permitted as containers. Each mailing 
presented in mailer-supplied containers, including those prepared as 
Express Mail and Priority Mail drop shipment, would be required to be 
accompanied by sample containers for tare weight calculations. Mailings 
with more than three different types of containers or mailings 
consisting of nonidentical-weight pieces would be required to be 
presented using a manifest mailing system (MMS) under DMM P910 or any 
other available postage payment system if approved by the Business 
Mailer Support (BMS) manager, Postal Service Headquarters.
    CMM containers would be required to bear the correct container 
label and be endorsed to the attention of the delivery unit supervisor 
or postmaster with instructions to ``open and distribute'' the 
contents. At the DDU, the CMM pieces would be distributed to mail 
carriers for casing, and delivery, or in the case of noncarrier 
offices, to clerks for distribution directly into post office boxes.
    At the mailer's option, every piece in a mailing would be permitted 
to bear the correct carrier route code under DMM M014. If applied, the 
carrier route code would require the use of 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 DMM A930 and A950. Carrier route information would also 
require updating within 90 days before the mailing date.

CMM Rates

    CMM pieces would be subject to the basic nonletter piece rates, 
with no destination entry discount, in the Standard Mail Regular and 
Nonprofit subclasses. Owing to the irregular or nonrectangular shape 
inherent with CMM pieces, such pieces would also be subject to the 
residual shape surcharge (RSS). Currently, the RSS is applied only to 
mailable pieces within the Standard Mail subclasses that are prepared 
as a parcel or are not within the dimensional standards for either 
letter-size mail or flat-size mail.
    CMM pieces would not be eligible for any destination entry 
discount, automation rate, or other presort rate. In addition, because 
CMM pieces would not be handled in mail processing facilities, such 
pieces would not be eligible for the parcel barcode discount, which 
currently is available to appropriately barcoded pieces that are also 
subject to the residual shape surcharge. Special services, as provided 
in DMM S900, would not be available for CMM pieces.

[[Page 27762]]

CMM Postage Payment

    CMM pieces would be subject to the same options of postage payment 
(precanceled stamps, metered postage, or permit imprint) for Standard 
Mail pieces as permitted by current standards in DMM P600. CMM mailers 
would not be required to obtain special mailing permits or 
authorizations other than those already required for Regular or 
Nonprofit Standard Mail.
    Mailers would, in most cases, be required to pay postage through an 
approved manifest mailing system (MMS) when more than three different 
types of mailing containers are used or when the mailing consists of 
nonidentical-weight pieces. Express Mail and Priority Mail drop 
shipments generally are also better processed through a manifesting 
system. The Business Mail Support (BMS) manager at Headquarters would 
approve the manifest mailing systems and any other postage payment 
system such as an optional procedure.

CMM Markings and Endorsements

    In addition to the current class and rate markings required for 
Standard Mail pieces, CMM pieces would have to bear the marking 
``CUSTOMIZED MARKETMAIL'' (or the approved abbreviations ``CUST 
MKTMAIL'' or ``CMM''). The standards and placement of applicable 
markings and endorsements would follow existing requirements for 
Standard Mail pieces under DMM M012.

CMM Physical Characteristics

    CMM mailpieces could be constructed of any material that is safe 
for handling by Postal Service personnel. However, CMM pieces would 
have to be sufficiently flexible to withstand normal handling required 
for carrier casing and delivery and for placement into mail receptacles 
and post office boxes.
    CMM pieces would not be allowed to have attachments or enclosures. 
However, it would be permissible for a CMM piece to be constructed or 
assembled from layers or parts to form a single item.
    For purposes of defining the dimensional requirements, a straight 
line drawn between the most distant outer points on a CMM mailpiece 
would define the axis of its length and a perpendicular line to that 
axis would be the axis of its height. The minimum and maximum 
dimensions and weight are as follows:
    (1) Height: No less than 3\1/2\ inches and no more than 12 inches.
    (2) Length: No less than 5 inches and no more than 15 inches.
    (3) Thickness: No less than 0.007 inch at its thinnest point and no 
more than \3/4\ inch when measured at its thickest point.
    (4) Weight: No more than 3.3 ounces.
    CMM pieces would be permitted to have voids or holes within their 
dimensions, and they would also be permitted to have a nonuniform 
thickness. If pieces are of nonuniform thickness, packages of CMM 
pieces would be required to be prepared by counterstacking under DMM 
M020 to ensure stability in transit.
    Mailpiece design approval by the manager of business mail entry in 
the district serving the office of mailing, though not required, would 
be highly recommended. Physical or graphic content would be subject to 
current standards in DMM C020 and C030 and to any applicable nonpostal 
statutes and regulations.

CMM Addressing

    Each CMM piece would be required to bear a complete mailing address 
including an accurate 5-digit ZIP Code or ZIP+4 code. CMM pieces must 
bear the exceptional address format or the occupant address format 
under DMM A040.
    The exceptional address format uses both a recipient's name and the 
alternative ``Current Occupant'' or ``Current Resident,'' followed by a 
complete delivery address, city, state, and ZIP Code or ZIP+4 code. If 
the named recipient has moved, mail bearing an exceptional address 
format is neither forwarded to the recipient's new address nor returned 
to the sender. Instead, such mail is left at the indicated delivery 
address for the current resident.
    The occupant address format does not use an actual recipient's name 
but only the designation ``Occupant,'' ``Householder,'' or ``Resident'' 
in place of a name, followed by a complete delivery address, city, 
state, and ZIP Code or ZIP+4 code. Mail bearing an occupant address is 
never forwarded or returned.
    The address block could be placed anywhere on the mailpiece as 
currently permitted for flat-size mailpieces, whether printed directly 
on the mailpiece, or printed on an address label permanently affixed to 
the piece. The address and other mandatory information such as postage 
indicia and class and rate markings would be required to be clearly 
identifiable and legible, following current mailing standards.
    CMM pieces would be subject to the standard for address quality and 
address list maintenance that requires all 5-digit ZIP Codes included 
in addresses on pieces claimed at Regular Standard Mail and Nonprofit 
Standard Mail rates to be verified and corrected within 12 months 
before the mailing date using a method approved by the Postal Service. 
This requirement ensures that mail is addressed for the correct ZIP 
Code destination and eliminates potential misdirection of mail. The use 
of detached address labels (DALs) would not be permitted for CMM 
pieces.

CMM Delivery

    Postal Service handling of CMM mailpieces would end when the mail 
carrier delivers the pieces to the addresses shown on the pieces or 
when the postal employee distributes the pieces to the correct post 
office boxes. Deliverable CMM pieces would be delivered or left at the 
address, and CMM pieces that are undeliverable as addressed because of 
an invalid address would be discarded.
    Ancillary service endorsements used for address correction services 
and the forwarding and return of mail would not be available. Each 
piece would also be required to bear the appropriate carrier release 
endorsement in DMM D042 (``Carrier--Leave If No Response'') to indicate 
that a deliverable CMM piece is to be left in a safe location near the 
recipient's mail receptacle if the piece cannot be placed inside the 
receptacle.
    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 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:

Domestic Mail Manual (DMM)

* * * * *

[[Page 27763]]

C Characteristics and Content

C000 General Information

C010 General Mailability Standards

1.0 MINIMUM AND MAXIMUM DIMENSIONS

1.1 Minimum

[Revise 1.1 to read as follows:]

    For mailability, the following standards apply:
    a. All mailpieces (except Customized MarketMail mailed under E660 
and keys and identification devices mailed under E130) that are \1/4\ 
inch thick or less must be rectangular, with four square corners and 
parallel opposite sides.
    b. All mailpieces must be at least 3\1/2\ inches high and at least 
5 inches long (see Exhibit 1.1).
    c. All mailpieces must be at least 0.007 inch thick.
* * * * *

1.3 Length and Height

* * * * *
[Redesignate current 1.3c as 1.3d and add new 1.3c to read as 
follows:]

    c. Standard Mail Customized MarketMail.
* * * * *

C600 Standard Mail

1.0 DIMENSIONS

1.1 Basic Standards

    These standards apply to Standard Mail:
* * * * *
[Revise 1.1b to read as follows:]

    b. Presorted rate and Customized MarketMail pieces are subject only 
to the basic mailability standards in C010.
* * * * *
[Redesignate current 2.0 through 5.0 as 3.0 through 6.0, 
respectively; add new 2.0 to read as follows:]
2.0 CUSTOMIZED MARKETMAIL
    Mailpieces prepared as Customized MarketMail (CMM) under E660 must 
meet these additional standards and physical characteristics:
    a. The material used for constructing the pieces, including paper, 
plastic, or any other suitable material, must be free of sharp edges, 
protrusions, and other design elements that could cause harm or injury 
to USPS personnel handling these pieces.
    b. The dimensions of the pieces must not be smaller than the 
minimum dimensions for letter-size mail in C050 or greater than the 
maximum dimensions for flat-size mail in C050. Length and height are 
defined as follows:
    (1) The length and the axis of length are determined by drawing a 
straight line between the two outer points most distant from each 
other.
    (2) The height is determined by drawing perpendicular lines to the 
points that are the greatest distance above and below the axis of 
length. The sum of these two lines defines the height.
    c. The maximum weight may not exceed 3.3 ounces.
    d. Pieces may be rectangular or nonrectangular, may be of irregular 
thickness, and may include die cuts, holes, and voids.
    e. Pieces must be flexible enough to fit inside a minimum-size mail 
receptacle measuring 4\7/8\ inches wide, 14\7/8\ inches high, and 5\7/
8\ inches long (deep).
    f. Design approval by the district business mail entry manager is 
not required, but it is recommended.
3.0 RESIDUAL SHAPE SURCHARGE
[Revise redesignated 3.0 to read as follows:]

    Mail that is prepared as a parcel or is not letter-size or flat-
size as defined in C050 is subject to a residual shape surcharge. Mail 
that is prepared as Customized MarketMail under E660 is also subject to 
the residual shape surcharge. There are different surcharges for 
Presorted rate pieces and Enhanced Carrier Route rate pieces.
* * * * *

D Deposit, Collection, and Delivery

D000 Basic Information

* * * * *

D040 Delivery of Mail

* * * * *

D042 Conditions of Delivery

* * * * *
[Revise heading of 7.0 to read as follows:]
7.0 CARRIER RELEASE
[Redesignate current text of 7.0 as 7.1 and add heading to read as 
follows:]

7.1 Parcels

    An uninsured parcel may not be left in an unprotected place, such 
as a porch or stairway, unless the addressee has filed a written order, 
or the mailer has endorsed the parcel ``Carrier--Leave If No 
Response.'' The endorsement must appear directly below the return 
address as specified in M012.

[Add new 7.2 to read as follows:]

7.2 Customized MarketMail

    Any matter mailed as Customized MarketMail under E660 must bear the 
endorsement ``Carrier--Leave If No Response'' as specified in M012.
* * * * *

E Eligibility

* * * * *

E100 First-Class Mail

E110 Basic Standards

1.0 CLASSIFICATION AND DESCRIPTION

1.1 Eligibility

[Revise 1.1 to read as follows:]
    All mailable matter may be sent as First-Class Mail (which for the 
purposes of the standards in 1.0 includes Priority Mail) or as Express 
Mail, except Customized MarketMail under E660 or other matter 
prohibited by the respective standards.
* * * * *

E600 Standard Mail

E610 Basic Standards

* * * * *
4.0 ENCLOSURES AND ATTACHMENTS
* * * * *

4.3 Nonincidental First-Class Enclosures

[Revise first sentence of 4.3 to read as follows; no other change:]

    Letters or other pieces of nonincidental First-Class Mail, subject 
to postage at First-Class Mail rates, may be enclosed with Standard 
Mail (except matter mailed as Customized MarketMail under E660). * * *

4.4 Nonincidental First-Class Attachments

[Revise first sentence of 4.4 to read as follows; no other change:]

    Letters or other pieces of nonincidental First-Class Mail may be 
placed in an envelope and securely attached to the address side of a 
Standard Mail piece (except matter mailed as Customized MarketMail 
under E660), or of the principal piece, as applicable. * * *

4.5 Attachment of Other Standard Mail Matter

[Revise introductory sentence and 4.5b to read as follows:]

    The front or back cover page of a Standard Mail piece (except 
Customized MarketMail) may bear an attachment that is also Standard 
Mail matter if:
* * * * *
    b. The material qualifies for and is mailed at Standard Mail rates.
* * * * *

[[Page 27764]]

5.0 RATES

5.1 General Information

[Revise 5.1 to read as follows:]

    All Standard Mail rates are presorted rates (including all 
nonprofit rates). These rates apply to mailings meeting the basic 
standards in E610 and the corresponding standards for Presorted rates 
under E620, Enhanced Carrier Route rates under E630, automation rates 
under E640, or Customized MarketMail rates under E660. Except for 
Customized MarketMail, destination entry discount rates are available 
under E650, and barcode discounts are available for machinable parcels 
under E620. A mailpiece is subject to the residual shape surcharge if 
it is prepared as a parcel, or if it is not letter-size or flat-size 
under C050, or if it is prepared as Customized MarketMail under E660. 
Nonprofit rates may be used only by organizations authorized by the 
USPS under E670. Not all processing categories qualify for every rate. 
Pieces are subject to either a single minimum per piece rate or a 
combined piece/pound rate, depending on the weight of the individual 
pieces in the mailing under 5.2 or 5.3.

5.2 Minimum per Piece Rates

    The minimum per piece rates (i.e., the minimum postage that must be 
paid for each piece) apply as follows:
* * * * *
[Revise 5.2b and 5.2c to read as follows:]

    b. Letters and Nonletters. In applying the minimum per piece rates, 
a mailpiece is categorized as either a letter or a nonletter, based on 
whether the piece meets the letter-size standard in C050, without 
regard to placement of the address on the piece, except under these 
conditions:
    (1) If the piece meets both the definition of a letter in C050 and 
the definition of an automation flat in C820, the piece may be prepared 
and entered at an automation flat (nonletter) rate.
    (2) If the piece is prepared for automation letter rates, address 
placement is used to determine the length when applying the size 
standards and aspect ratio requirements to qualify for automation 
letter rates under C810. For this purpose, the length is considered to 
be the dimension parallel to the address.
    (3) If the piece is mailed as Customized MarketMail under E660, the 
piece is always subject to the applicable Regular or Nonprofit Standard 
Mail basic nonletter per piece rate and must not exceed the maximum 
weight for those rates.
    c. Individual Rates. There are separate minimum per piece rates for 
each subclass (Regular, Enhanced Carrier Route, Nonprofit, and 
Nonprofit Enhanced Carrier Route) and within each subclass for the type 
of mailing and the level of presort within each mailing under E620, 
E630, E640, and E660. Except for Customized MarketMail, discounted per 
piece rates also may be claimed for destination entry mailings 
(destination bulk mail center (DBMC), destination sectional center 
facility (DSCF), and destination delivery unit (DDU)) under E650. DDU 
rates are available only for mail entered at Enhanced Carrier Route or 
Nonprofit Enhanced Carrier Route rates. See R600 for individual per 
piece rates.

5.3 Piece/Pound Rates

[Revise 5.3 by adding a new sentence after the first sentence to 
read as follows; no other change:]

* * * Pieces exceeding 3.3 ounces may not be mailed as Customized 
MarketMail. * * *
* * * * *
[Revise heading of 5.4 to read as follows:]

5.4 Machinable Parcel Barcode Discount

[Revise last sentence to read as follows:]

* * * Pieces mailed at Enhanced Carrier Route, Nonprofit Enhanced 
Carrier Route, or Customized MarketMail rates are not eligible for a 
barcoded discount.

5.5. Residual Shape Surcharge

[Revise 5.5 to read as follows:]

    Standard Mail that is prepared as a parcel or is not letter-size or 
flat-size as defined in C050 is subject to a residual shape surcharge. 
Mail that is prepared as Customized MarketMail under E660 is also 
subject to the residual shape surcharge. There are different surcharges 
for Presorted rate pieces and Enhanced Carrier Route rate pieces. Only 
the surcharges for Presorted rate pieces apply to Customized 
MarketMail.
* * * * *
9.0 SPECIAL SERVICES
* * * * *

9.3 Ineligible Matter

    Special services may not be used for any of the following types of 
Standard Mail:
* * * * *
[Add 9.3e to read as follows:]

    e. Pieces mailed as Customized MarketMail.
* * * * *

E620 Presorted Rates

* * * * *
[Revise heading and text of 3.0 to read as follows:]
3.0 RESIDUAL SHAPE SURCHARGE
    Presorted Standard Mail that is prepared as a parcel or is not 
letter-size or flat-size as defined in C050 is subject to a residual 
shape surcharge.
* * * * *


E630 Enhanced Carrier Route Rates

* * * * *
5.0 RESIDUAL SHAPE SURCHARGE
[Revise 5.0 to read as follows:]

    Enhanced Carrier Route Standard Mail that is prepared as a parcel 
or is not letter-size or flat-size as defined in C050 is subject to a 
residual shape surcharge.
* * * * *

E650 Destination Entry

1.0 BASIC STANDARDS

1.1 Rate Application

[Revise first sentence of 1.1 to read as follows; no other change:]

    Except for Customized MarketMail as defined in E660, Regular, 
Nonprofit, Enhanced Carrier Route, and Nonprofit Enhanced Carrier Route 
Standard Mail meeting the basic standards in E610 may qualify for the 
destination BMC, SCF, or DDU entry rates, as applicable, if deposited 
at the correct destination postal facility, subject to the general 
standards below and the specific standards in 5.0, 6.0, and 7.0, 
respectively. * * *
* * * * *
[Add new E660 to read as follows:]

E660 Customized MarketMail

Summary

    E660 describes the eligibility standards for Customized MarketMail 
(CMM) including standards for minimum volumes, addressing, and drop 
shipment.
1.0 BASIC STANDARDS

1.1 General

    Customized MarketMail (CMM) is an option for mailing nonrectangular 
and irregular-shaped Regular Standard Mail and Nonprofit Standard Mail 
pieces if the pieces weigh 3.3 ounces or less and meet the physical 
characteristics and the dimensional requirements in C600 and the mail 
preparation standards in M660. Other Regular and Nonprofit Standard 
Mail measuring \3/4\ inch thick or less and meeting the applicable

[[Page 27765]]

standards in C600, E660, and M660 may be entered as CMM at the mailer's 
option. CMM must be entered directly at a destination delivery unit 
(DDU).

1.2 Basic Standards

    All pieces in a CMM mailing must:
    a. Meet the basic standards for Standard Mail in E610 and, for 
Nonprofit Standard Mail, the additional standards in E670.
    b. Be part of a single mailing of at least 200 addressed pieces. 
All pieces must be identical in size, shape, and weight unless excepted 
by standard under an approved postage payment system.
    c. Bear a complete delivery address using the exceptional address 
format or occupant address format under A040 with the correct ZIP Code 
or ZIP+4 code. Each piece must also bear a carrier release endorsement 
as specified by D042.7.0. These additional addressing standards apply:
    (1) Detached address labels (DALs) under A060 are not permitted.
    (2) Ancillary service endorsements under F010 are not permitted.
    (3) All 5-digit ZIP Codes included in addresses on pieces 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.
    (4) At the mailer's option, a carrier route information line under 
M014 may be added. If this option is used, a carrier route code must be 
applied to every piece in the mailing and must be applied 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.
    d. Be marked, sorted, and documented as specified in M660.
    e. Be entered at the destination delivery unit appropriate to the 
delivery address on the corresponding mail, as a mailing subject to the 
applicable requirements in E650, as a mailing using Express Mail or 
Priority Mail drop shipment under M072, or as a plant-verified drop 
shipment (PVDS) mailing under P950. Minimum volumes per destination are 
not required.
2.0 RATES
    Each CMM piece is subject to the Presorted Regular or Nonprofit 
Standard Mail nonletter, nondestination entry basic rate plus the 
residual shape surcharge. CMM is not eligible for the parcel barcode 
discount.
3.0 SPECIAL SERVICES
    CMM is not eligible for any special service.
* * * * *

E700 Package Services

E710 Basic Standards

1.0 BASIC INFORMATION

1.1 Definition

[Revise first sentence of 1.1 to read as follows; no other change:]

    Package Services mail consists of mailable matter that is neither 
mailed or required to be mailed as First-Class Mail nor entered as 
Periodicals (unless permitted or required by standard) or as Customized 
MarketMail as defined in E660. * * *
* * * * *

F Forwarding and Related Services

F000 Basic Services

F010 Basic Information

* * * * *
5.0 CLASS TREATMENT FOR ANCILLARY SERVICES
* * * * *

5.3 Standard Mail

    Undeliverable-as-addressed (UAA) Standard Mail is treated as 
described in Exhibit 5.3a and Exhibit 5.3b, with these additional 
conditions:
* * * * *
[Add 5.3k to read as follows:]

    k. Customized MarketMail under E660 is not eligible to use 
ancillary service endorsements.
* * * * *

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS
* * * * *

1.4 Mailings

    Mailings are defined as:
* * * * *
    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, M620, and M900 for copalletized, combined, or mixed-
rate mailings.
* * * * *
[Add 1.4d(8) to read as follows:]

    (8) Customized MarketMail and any other type of mail.
* * * * *

M012 Markings and Endorsements

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

2.1 Placement

    Markings must be placed as follows:
* * * * *
[Revise 2.1b to read as follows:]

    b. Other Markings. The rate-specific markings ``AUTO,'' ``AUTOCR,'' 
``Presorted'' (or ``PRSRT''); ``Single-Piece'' (or ``SNGLP'') (First-
Class Mail only); and ``ECRLOT,'' ``ECRWSH,'' ``ECRWSS,'' and 
``Customized MarketMail'' (or ``CUST MKTMAIL'' or ``CMM'') (Standard 
Mail only)) may be placed as follows:
    (1) In the location specified in 2.1a.
    (2) 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 optional 
endorsement line information under M013 or carrier route package 
information under M014.
    (3) If preceded by two asterisks (**), the ``AUTO,'' ``AUTOCR,'' 
``PRESORTED'' (or ``PRSRT''), ``CUSTOMIZED MARKETMAIL'' (or ``CUST 
MKTMAIL'' or ``CMM''), or ``Single-Piece'' (or ``SNGLP'') marking also 
may be placed on the line directly above or two lines above the address 
in a mailer keyline or a manifest keyline, or it may be placed above 
the address and below the postage in an MLOCR ink-jet printed date 
correction/meter drop shipment line. Alternatively, the ``AUTO,'' 
``AUTOCR,'' ``PRSRT,'' or ``SNGLP'' marking may be placed to the left 
of the barcode clear zone (subject to the standards in C840) on letter-
size pieces.
* * * * *

M070 Mixed Classes

* * * * *

M072 Express Mail and Priority Mail Drop Shipment

1.0 BASIC STANDARDS

1.1 Enclosed Mail

[Revise last sentence of 1.1 to read as follows; no other change:]


[[Page 27766]]


* * * When a drop shipment is destined to a 5-digit facility, then 
sacking or traying is not required for letters or flats, if all 
enclosed presort destination packages are destined to the same 5-digit 
ZIP Code as the Express Mail or Priority Mails pouch, sack, or 
container.
* * * * *

1.3 Containers for Expedited Transport

[Revise 1.3 to read as follows:]

    Acceptable containers for expedited transport are as follows:
    a. An Express Mail drop shipment must be contained in a blue and 
orange Express Mail pouch, except that Customized MarketMail under E660 
may be contained in USPS-provided Express Mail envelopes and cartons or 
in any properly labeled container supplied by the mailer.
    b. A Priority Mail drop shipment must be contained in either an 
orange Priority Mail sack or a letter-size tray, except that Customized 
MarketMail under E660 may be contained in USPS-provided Priority Mail 
envelopes and cartons or in any properly labeled container supplied by 
the mailer.
* * * * *

1.7 Label 23

[Revise 1.7 to read as follows:]

    As an alternative to sacks for Priority Mail drop shipments, letter 
trays or mailer-supplied containers for Customized MarketMail under 
E660 may be used. Label 23 is affixed to the letter tray or mailer-
supplied container. A single Label 23 may be used to identify two 
letter trays strapped together. The two trays must be of identical 
size, and each individual tray must be strapped under M033.1.5. Label 
23 must be affixed to the sleeve of the top tray before strapping. 
These trays must be strapped securely around the length of the two 
trays. The total weight of two trays strapped together or mailer-
supplied containers used for CMM may not exceed 70 pounds.
* * * * *


M600 Standard Mail

* * * * *
[Add new M660 to read as follows:]

M660 Customized MarketMail

Summary

    M660 describes the basic preparation and marking standards for 
CustomizedMarketMail (CMM) meeting the eligibility standards in E660.
1.0 BASIC STANDARDS

1.1 All Mailings

    All mailings and all pieces in each mailing prepared as Customized 
MarketMail (CMM) are subject to specific preparation standards in 1.0 
and 2.0 and to these general standards:
    a. All pieces must meet the standards for basic eligibility in E610 
and specific eligibility in E660. Nonprofit Standard Mail must meet the 
additional eligibility standards in E670.
    b. CMM pieces must not be part of a mailing containing any other 
type of Standard Mail.
    c. Each mailing must meet the applicable standards for mail 
preparation in M010 and M020 and the following:
    (1) Subject to the marking standards in M012, Regular Standard Mail 
pieces must be marked ``Presorted Standard'' (or ``PRSRT STD'') and 
Nonprofit Standard Mail pieces must be marked ``Nonprofit 
Organization'' (or ``Nonprofit Org.'' or ``Nonprofit''). All pieces 
must also be marked Customized MarketMail,'' ``CUST MKTMAIL,'' or 
``CMM.''
    (2) At the mailer's option, a carrier route information line under 
M014 may be added. If this option is used, a carrier route code must be 
applied to every piece in the mailing and must be applied using CASS-
certified software and the current USPS Carrier Route File scheme, hard 
copyCarrier 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.
    d. All pieces in the mailing must meet the specific sortation and 
preparation standards in M660.
    e. Pieces are subject to the rate eligibility specified in E660.

1.2 Postage

    CMM is subject to the same options of postage payment (precanceled 
stamps, metered postage, or permit imprint) for Standard Mail as 
permitted under P600.

1.3 Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile with the residual shape surcharge, must 
accompany each mailing. Mailings of nonidentical-weight pieces or 
mailings using more than three different types of containers must also 
be supported by standardized documentation meeting the standards in 
P012. Documentation for nonidentical-weight pieces is not required if 
the correct rate is affixed to each piece.
2.0 PREPARATION

2.1 Packaging

    Two or more pieces to the same 5-digit destination must be packaged 
under M020 in any container to maintain the integrity and stability of 
the pieces throughout transit and handling. The maximum weight for any 
package is 20 pounds. Pieces of irregular thickness must also be 
counterstacked as provided in M020. At the mailer's option, CMM may be 
prepared in carrier route packages, subject to the applicable standards 
in M050 and E630.

2.2 Containers

    If more than three types of containers are used, the mailing must 
be prepared using an approved manifest mailing system (MMS) under P910, 
unless the Business Mailer Support (BMS) manager approves another 
postage payment system. Each mailing presented in mailer-supplied 
containers must be accompanied by sample containers for tare weight 
calculations. The size of the containers must be appropriate to the 
dimensions of the pieces, and the number of containers must be 
appropriate to the volume of pieces in the mailing. If Express Mail or 
Priority Mail drop shipment is used, containers are subject to the 
standards in M072.

2.3 Containerizing and Labeling

    Mail must be prepared in 5-digit, 5-digit scheme using L606, or 5-
digit carrier route containers, with no minimum volume (piece or 
weight) required for an individual container. In addition to the 
required labeling, mailer-supplied containers must be marked ``DELIVERY 
UNIT--OPEN AND DISTRIBUTE'' on the container label or on the address 
side of the container. Containers are prepared and labeled as follows:
    a. PVDS drop shipments must be prepared in 5-digit or 5-digit 
carrier route letter trays or in mailer-supplied containers and labeled 
as follows:
    (1) Line 1: City, state, and 5-digit ZIP Code on mail.
    (2) Line 2: ``DELIVERY UNIT--STD CMM.''
    (3) Line 3: Office of mailing or mailer information (see M031).
    b. Express Mail and Priority Mail drop shipments must be prepared 
in USPS-provided Express Mail or Priority Mail containers (i.e., 
pouches, sacks, cartons, or envelopes) or in mailer-supplied containers 
and must be labeled under M072.
* * * * *

[[Page 27767]]

P Postage and Payment Methods

P000 Basic Information

* * * * *

P040 Permit Imprints

* * * * *
4.0 INDICIA FORMAT

4.1 Basic Standard

Exhibit 4.1b Indicia Formats

[Revise Exhibit 4.1b, Standard Mail by adding an example of 
``CustomizedMarketMail,'' ``Cust MktMail,'' or ``CMM'' marking.]
[GRAPHIC] [TIFF OMITTED] TP21MY03.000

* * * * *

R Rates and Fees

* * * * *

R600 Standard Mail

1.0 REGULAR STANDARD MAIL
* * * * *

1.2 Nonletters--3.3 oz. or Less

* * * * *
[Add footnote 2 to ``Presorted'' to read as follows:]

    2. Customized MarketMail pieces are subject to the Basic 
nondestination entry nonletter rate, plus the residual shape surcharge.
* * * * *
3.0 NONPROFIT STANDARD MAIL
* * * * *

3.2 Nonletters--3.3 oz. or Less

* * * * *
[Add footnote 2 to ``Presorted'' to read as follows:]

    2. Customized MarketMail pieces are subject to the Basic 
nondestination entry nonletter rate, plus the residual shape surcharge.
* * * * *

S Special Services

S000 Miscellaneous Services

* * * * *

S070 Mixed Classes

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

    For a Priority Mail drop shipment, no special services may be added 
to the Priority Mail segment, and the mail enclosed may receive only 
the following services:
    a. First-Class Mail may be sent with certified, special handing, 
or, for First-Class Mail parcels only, electronic option Delivery 
Confirmation or electronic option Signature Confirmation.
    b. Standard Mail subject to the residual shape surcharge (except 
Customized MarketMail) may be sent with electronic option Delivery 
Confirmation.
    c. Package Services mail may be sent with special handling or, for 
Package Services parcels only, electronic option Delivery Confirmation 
or electronic option Signature Confirmation.
* * * * *

S500 Special Services for Express Mail

* * * * *
2.0 EXPRESS MAIL DROP SHIPMENT
[Revise 2.0 to read as follows:]

    For an Express Mail drop shipment, the content of each Express Mail 
pouch is considered one mailpiece for indemnity coverage, and the mail 
enclosed may receive only the following services:
    a. First-Class Mail may be sent with certified, special handing, 
or, for First-Class Mail parcels only, electronic option Delivery 
Confirmation or electronic option Signature Confirmation.
    b. Priority Mail may be sent with certified, special handing, 
electronic option Delivery Confirmation, or electronic option Signature 
Confirmation.
    c. Standard Mail subject to the residual shape surcharge (except 
Customized MarketMail) may be sent with electronic option Delivery 
Confirmation.
    d. Package Services mail may be sent with special handling or, for 
Package Services parcels only, electronic option Delivery Confirmation 
or electronic option Signature Confirmation.
* * * * *

I Index Information

I000 Information

* * * * *

I020 References

* * * * *

I022 Subject Index

* * * * *
[Add the following two entries to read as follows:]

Customized MarketMail, C600, E660, M660

* * * * *

Standard Mail

* * * * *
    mail preparation
* * * * *
    Customized MarketMail, M660
* * * * *
    An appropriate amendment to 39 CFR 111 to reflect these changes 
will be published if the proposal is adopted.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 03-12719 Filed 5-20-03; 8:45 am]
BILLING CODE 7710-12-P