[Federal Register Volume 68, Number 131 (Wednesday, July 9, 2003)]
[Rules and Regulations]
[Pages 40774-40782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17351]


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POSTAL SERVICE

39 CFR Part 111


Changes to the Domestic Mail Manual to Implement Customized 
MarketMailTM

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards that the Postal Service adopted to implement the Customized 
MarketMailTM classification changes, as established by the 
Decision of the Governors of the United States Postal Service on the 
Recommended Decision of the Postal Rate Commission on Approving 
Stipulation and Agreement on Customized Market Mail Minor 
Classification Changes, Docket No. MC2003-1. In their decision, the 
Governors approved the Commission's recommendations, adopting 
recommended classification changes.
    Customized MarketMail (CMM) represents a significant innovation for 
Standard Mail advertisers who want to target a specific audience with 
highly individualized mailpiece designs, including nonrectangular-
shaped and multidimensional mailpieces such as cutouts of houses, 
automobiles, power boats, or wearing apparel. More creative designs 
could encourage greater customer interest and response rates to 
promotions, advertising, fund-raising campaigns, or other types of 
communications.
    Before this service was introduced, mailing standards required that 
any mailpiece that was \1/4\ inch thick or less could not be mailed if 
that piece was not rectangular. This exclusion of nonrectangular 
letter-size mail and, in some cases, nonrectangular flat-size mail, 
reduced the available options for businesses and organizations wishing 
to reach existing or potential customers through advertising messages 
and designs, including the shape of the mailpiece. CMM will overcome 
this previous restraint.

EFFECTIVE DATE: This final rule takes effect at 12:01 a.m. on Sunday, 
August 10, 2003.

FOR FURTHER INFORMATION CONTACT: Neil Berger, 703-292-3645, Mailing 
Standards, Postal Service Headquarters; or Garry A. Rodriguez, 212-613-
8748, New York Rates and Classification Service Center.

SUPPLEMENTARY INFORMATION:
    On March 14, 2003, the United States Postal Service, in conformance 
with section 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 as a 
minor classification change. The PRC designated this filing as Docket 
No. MC2003-1.
    On June 6, 2003, pursuant to 39 U.S.C. 3624, the PRC issued to the 
Governors of the Postal Service its Opinion and Recommended Decision 
Approving Stipulation and Agreement on Customized Market Mail Minor 
Classification Changes, Docket No. MC2003-1. The PRC recommended that 
the Postal Service proposal for Customized MarketMail be established as 
a permanent classification.
    On June 27, 2003, the Governors of the Postal Service approved the 
recommended decision and the Board of Governors established an 
implementation date of August 10, 2003, on which the approved 
classifications for Customized MarketMail take effect. This final rule 
contains the DMM standards adopted by the Postal Service to implement 
the decision of the Governors.
    The Postal Service has therefore determined to issue these 
standards as published in the proposed rule, with minor modifications, 
as issued on May 21, 2003, in the Federal Register (68 FR 27760-27767). 
In that proposed rule, the Postal Service requested comments from the 
public and the mailing industry.
    In order to simplify further the requirements for CMM, the Postal 
Service has initiated the following modifications or clarifications to 
the proposed rule:
    [sbull] Addition of Postal Service flat trays as a container 
option.
    [sbull] Addition of three distinct content identifier numbers for 
CMM prepared in Postal Service containers (letter trays, flat trays, 
and sacks), including the required ``MAN'' to ensure the mail is 
manually handled.
    [sbull] Addition of a mailing standard requiring the submission of 
a sample CMM piece along with an extra copy of the completed postage 
statement corresponding to the CMM mailing at the time of mailing.

Comments

    The Postal Service received comments from four distinct entities: a 
mailing association, a printing and graphics

[[Page 40775]]

company, a promotional products company, and a Postal Service employee.
    One of the commenters expressed a general objection to CMM. This 
comment is outside the scope of the final rule.
    Three of the commenters praised the Postal Service for its proposed 
changes to mailing standards that currently prohibit nonrectangular 
pieces that are \1/4\ inch thick or less. They stated that this minor 
classification change will provide new and more creative opportunities 
for advertising mailers to reach their customers and, at the same time, 
strengthen the viability of mail as an advertising medium.
    These same three commenters expressed their concern about potential 
cost barriers for some mailers wishing to use this new service. In 
particular, these commenters stated that, because of the necessary 
requirement to enter mail at the delivery unit under a limited set of 
methods, many mailers would not be able to afford the production costs, 
postage costs, and then the transportation costs in order to consider 
CMM a viable choice for either ongoing business needs or occasional 
marketing campaigns.
    The same three commenters believed that adding both Parcel Post 
drop shipment and First-Class Mail drop shipment (open and distribute 
at destination office) would provide two more effective and, in many 
cases, more economical means to enter CMM pieces at the required 
delivery unit. Parcel Post would provide lower costs than either 
Priority Mail or Express Mail drop shipment, and First-Class Mail drop 
shipment would allow sending either one piece or a handful of pieces to 
a particular delivery unit.
    The Postal Service contemplated that this minor classification 
change would complement existing rates and services and only existing 
Postal Service infrastructures for mail processing, transportation, and 
delivery would be used for this high-end service. By using the current 
transportation networks and mail processing and delivery systems 
already in place, the Postal Service would be able to introduce this 
product efficiently. In addition, the Postal Service established 
simpler and less stringent preparation standards than those required 
for other types of Standard Mail, including the elimination of the 
minimum required number of pieces per package and container.
    Mindful of the need to make this new service competitive, the 
Postal Service will offer four practical methods to reach the delivery 
unit:

    [sbull] Normal entry procedures for mailers who already have paid 
the appropriate fees (including the annual mailing fee) at the Post 
Office of mailing. If the Post Office of mailing is also the site from 
which carriers deliver the destinating mail or the site in which 
distribution is made to Post Office boxes, the mail can be verified and 
accepted at that office like any other mailing. This method is 
especially useful for local mailers taking CMM to small Post Offices. 
If the Post Office has multiple stations and branches, the mailer could 
handle the mail similarly to a plant-verified drop shipment (PVDS) as 
long as the applicable documents are used. In either case, this entry 
method is useful and inexpensive for local mailers either preparing the 
mail themselves or working with a third-party mail preparation house. 
It eliminates the need for using Express Mail or Priority drop shipment 
altogether and adds only the transportation costs to the total mailing 
expenditures.
    [sbull] Plant-verified drop shipment for either local mailers or 
national mailers (or mailers working with a third party). Here the mail 
is verified at origin either in the mailer's plant or at the business 
mail entry unit (BMEU) at the origin post office serving the mailer's 
plant. Postage and fees are paid under a valid permit at the post 
office generally serving the mailer's plant. The shipments are then 
shipped on the mailer's or agent's transportation to the various 
destination Postal Service facilities, where the shipments are compared 
with the proper drop shipment form and then accepted as mail by the 
Postal Service. For small mailings, a mailer can certainly engage the 
services of an agent who makes regular drops either locally or 
nationally, saving considerable costs associated with this method.
    [sbull] Priority Mail drop shipment for budget-conscious mailers 
needing an efficient and effective entry method that generally provides 
two- to three-day service. Mailers can prepare the pieces either 
directly into Priority Mail sacks or use Postal Service letter trays 
that are properly labeled. Moreover, mailers can obtain special 
Priority Mail mailing boxes, envelopes, tape, and labels from the 
Postal Service at no additional charge. Mailers may also use their own 
mailing cartons and envelopes for this drop shipment method.
    [sbull] Express Mail drop shipment for mailers needing a fast entry 
method that generally provides overnight service with tracking and 
tracing. This entry method, though more expensive than Priority Mail, 
also provides a postage refund for the Express Mail portion if the drop 
shipment fails to be delivered by the guaranteed delivery time. 
Moreover, mailers can obtain special Express Mail mailing boxes, 
envelopes, tape, and labels from the Postal Service at no additional 
charge. Mailers may also use their own mailing cartons and envelopes 
for this drop shipment method.

    First-Class Mail as a drop shipment method may not have widespread 
use owing to the 13-ounce maximum weight limit imposed on that class of 
mail. For example, if a mailer prepared 3-ounce CMM pieces, that mailer 
could place no more than four such pieces in one First-Class Mail 
envelope. Postal Service drop shipment services--both Express Mail and 
Priority Mail--were originally designed to carry large quantities of 
lower rate mail such as Standard Mail letter or small parcels.
    In regard to the pricing between Priority Mail drop shipment and 
any proposal to use a Parcel Post drop shipment alternative, see the 
following table. Taking an average of zone 4 for lighter weight 
categories, the differences between the two subclasses of mail are not 
always significant. Mailers wanting to use Parcel Post would likely 
select the inter-bulk mail center (BMC) machinable rates rather than 
the less expensive intra-BMC rates for pieces entering and destinating 
in the service area of the same BMC. The lower intra-BMC rates would be 
more likely only for localized mailings. Furthermore, when the postage 
cost for the Priority Mail portion is divided by the actual number of 
enclosed pieces and thus spread out over each piece, the price 
differences can be as small as a few extra cents per piece.

[[Page 40776]]



                             Rate Comparison: Priority Mail and Parcel Post (Zone 4)
----------------------------------------------------------------------------------------------------------------
                                                                               Parcel post        Parcel post
          Weight not over  (pounds)  (zone 4)              Priority mail        Intra-BMC          Inter-BMC
                                                                               (machinable)       (machinable)
----------------------------------------------------------------------------------------------------------------
1......................................................              $3.85              $3.05              $3.75
2......................................................               4.55               3.63               4.14
3......................................................               6.05               4.20               5.55
4......................................................               7.05               4.72               6.29
5......................................................               8.00               5.15               6.94
6......................................................               8.85               5.51               7.44
7......................................................               9.80               5.84               7.91
8......................................................              10.75               6.14               8.30
9......................................................              11.70               6.45               8.74
10.....................................................              12.60               6.74               9.10
15.....................................................              16.20               7.96              10.73
20.....................................................              19.75               8.91              11.98
----------------------------------------------------------------------------------------------------------------

    Although at this time the Postal Service does not plan to introduce 
new services such as Parcel Post drop shipment or First-Class Mail drop 
shipment, it will study these ideas and determine their merits and 
their impact on mailer costs, other classes of mail, mail processing 
changes, software modifications for customers preparing manifested mail 
and other possible costs resulting from any such addition to current 
services.

Data Collection

    One commenter also urged the Postal Service to pursue relaxing or 
modifying some of the mail preparation standards in the proposed rule 
as one way of improving the affordability of CMM for mailers wanting to 
use this new service. Specifically, the mailing association believed 
that the Postal Service should develop and implement the necessary 
procedures to identify and track CMM by revenue, volume, and cost. 
Collecting such data would help in reviewing the various costing 
components of CMM and possibly inform future proposals for rate changes 
that would make CMM more economical for a wider range of mailers.
    The Postal Service believes that the only stringent mail 
preparation standards for some mailers might be those requiring 
destination delivery unit entry. Otherwise, CMM is probably easier to 
prepare than any other presorted mail at any other rate. Except for the 
required minimum of 200 pieces for each mailing, CMM does not require 
that minimum volumes be sent to a single destination delivery unit. In 
addition, there are no minimums for the number of pieces prepared in 
packages or placed into containers. Moreover, mailers may use letter 
trays, flat trays, or sacks, as well as mailer-supplied containers.
    As part of the Stipulation and Agreement, the Postal Service will 
undertake a data collection and reporting plan. Specifically, the 
Postal Service will amend the appropriate postage statements to require 
separate identification of CMM. Data from the postage statements would 
then be collected and analyzed to estimate both the annual volume and 
revenue of CMM. Under the terms of the Stipulation and Agreement, the 
Postal Service would report estimates of CMM volume and revenue 
annually to the Postal Rate Commission. Data reporting would continue 
until the conclusion of the next omnibus rate proceeding. As a result 
of the settlement, participants interested in revisiting the impact of 
CMM would be equipped with statistics that would aid in framing an 
analysis of CMM in a future rate case.

Counterstacking

    One commenter contended that counterstacking nonuniform CMM pieces 
could pose additional problems and work for the mailer and the Postal 
Service. The commenter did not believe counterstacking was necessary 
because CMM mailers are obligated to deliver the mail to the delivery 
unit using their own transportation. The commenter also noted that 
counterstacking requires the mailer to reorient the pieces based on 
their unevenness, which is generally a manual process. The Postal 
Service employee receiving the counterstacked packages is then required 
to turn the pieces around for efficient reading and casing. This 
commenter also questioned how a mailer would counterstack pieces that 
measured \7/1000\ inch thick on each edge and \3/4\ inch thick in the 
middle.
    The Postal Service requires the packaging of all CMM pieces--
whether those pieces are transported by the mailer or sent using 
Express Mail or Priority Mail drop shipment--in order to minimize the 
potential for damage to the pieces. Moreover, for nonuniform CMM 
pieces, the mailer must also counterstack the pieces to ensure 
stability of packages throughout transportation and processing. 
Counterstacking is already a widely observed practice by mailers 
producing certain types of flat-size mailpieces not only to stabilize 
packages of such pieces but also to create uniform packages that take 
up less space in the mailing containers. Although it would be 
permissible to create pieces with extreme dimensions of thickness, 
packaging of such pieces is still possible because there is no minimum 
number of pieces for a package. In the case the commenter mentioned, 
the mailer could line several pieces in a row and then shrinkwrap those 
pieces to unitize the package.
    For the reasons presented in the proposed rule and those noted 
above in this final rule, and in consideration of the public comments 
received, the Postal Service adopts the following changes in the 
Domestic Mail Manual, which is incorporated by reference in the Code of 
Federal Regulations. See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

0
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.


0
2. Amend the following sections of the Domestic Mail Manual (DMM) as 
set forth below:

Domestic Mail Manual (DMM)

* * * * *

[[Page 40777]]

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 pieces 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 new 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 new 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 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 uniform or 
nonuniform in 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 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. Only the 
surcharges for Presorted rate pieces apply to CMM 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:]

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

4.4 Nonincidental First-Class Attachments

[Revise first sentence of 4.4 to read as follows:]

    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 to read as follows:]

    The front or back cover page of a Standard Mail piece (except 
Customized MarketMail pieces) may bear an attachment that is also 
Standard Mail matter if:
* * * * *

[Revise 4.5b to read as follows:]


[[Page 40778]]


    b. The material qualifies for and is mailed at Standard Mail rates.
* * * * *
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 pieces, 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 a Customized 
MarketMail piece 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 a Customized MarketMail piece 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 pieces, 
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:]

    * * * 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:]

    Any Standard Mail piece 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. Any piece 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 pieces.
* * * * *
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
    Any Presorted Standard Mail piece 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:]

    Any Enhanced Carrier Route Standard Mail piece 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:]

    Except for Customized MarketMail pieces as defined in E660, 
Regular, Nonprofit, Enhanced Carrier Route, and Nonprofit Enhanced 
Carrier Route Standard Mail pieces 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) pieces 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

[[Page 40779]]

M660. Other Regular and Nonprofit Standard Mail pieces measuring \3/4\ 
inch thick or less and meeting the applicable 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 A020 with the correct ZIP Code 
or ZIP+4 code. Each piece must also bear a carrier release endorsement 
as specified by D042. 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 Address Information Systems (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 E610 and 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:]

    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 under 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.
* * * * *

M030 Containers

* * * * *

[[Page 40780]]

M032 Barcoded Labels

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

Exhibit 1.3 3-Digit Content Identifier Numbers

[Revise Exhibit 1.3 by adding the following entries before ``ECR 
Irregular Parcels--Nonautomation'' to read as follows:]

* * * * *

                                                  Standard Mail
----------------------------------------------------------------------------------------------------------------
               Class and mailing                 CIN                  Human-readable content line
----------------------------------------------------------------------------------------------------------------
CMM (letter trays)............................    206  DEL LTR STD CMM MAN
CMM (flat trays)..............................    207  DEL FLTS STD CMM MAN
CMM (sacks)...................................    205  DEL STD CMM MAN
----------------------------------------------------------------------------------------------------------------

* * * * *

M033 Sacks and Trays

1.0 BASIC STANDARDS
* * * * *

1.2 Standard Containers

[Revise 1.2 by inserting new sentence after first sentence to read 
as follows:]

    * * * Containers for Customized MarketMail are specified in M660. * 
* *
* * * * *
[Revise Exhibit 1.2 by adding the following entry at the end to read 
as follows:]

------------------------------------------------------------------------
           Mail class               Processing USPS   Container category
------------------------------------------------------------------------
            * * * * *                  * * * * *           * * * * *
Standard mail                          * * * * *           * * * * *
                                  Customized          Letter tray (with
                                   MarketMail under    sleeve), flat
                                   M660.               tray (with green
                                                       lid inverted),
                                                       white sack
------------------------------------------------------------------------

* * * * *

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:]

    * * * 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 pieces 
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 pieces 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 pieces 
under E660 may be used as follows:
    a. 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. Mailer-supplied containers may not be strapped 
together.
    b. If two letter trays are strapped together, each tray must be of 
identical size and individually strapped under M033.1.5. Label 23 must 
be affixed to the sleeve of the top tray before strapping. The trays 
must be strapped securely around the length of the two trays.
    c. 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 
Customized MarketMail (CMM) pieces 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 pieces 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 pieces.
    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

[[Page 40781]]

``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 
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. 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 pieces 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. The mailer must also provide an extra copy of 
the postage statement and a sample of the CMM mailpiece. The sample and 
the copy postage statement are then forwarded by the USPS to the New 
York Rates and Classification Service Center (see G042 for address). 
Mailings of nonidenticial-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, sacks, or in mailer-supplied containers and 
labeled as follows:
    (1) Line 1: City, state, and 5-digit ZIP Code on mail.
    (2) Line 2: ``DEL LTR STD CMM MAN'' (for letter trays); ``DEL FLTS 
STD CMM MAN'' (for flat trays); ``DEL STD CMM MAN'' (for sacks or 
mailer-supplied containers).
    (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.
* * * * *

P Postage and Payment Methods

P000 Basic Information

* * * * *

P040 Permit Imprints

* * * * *
4.0 INDICIA FORMAT
* * * * *

Exhibit 4.1b Indicia Formats

[Add an example of ``Cust MktMail,'' permit imprint indicia to read 
as follows:]
[GRAPHIC] [TIFF OMITTED] TR09JY03.000

* * * * *

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

1.1 Priority Mail Drop Shipment

[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 pieces may be sent with Certified Mail service 
or special handing, or, for First-Class Mail parcels only, electronic 
option Delivery Confirmation service or electronic option Signature 
Confirmation service.
    b. Standard Mail pieces subject to the residual shape surcharge 
(except Customized MarketMail pieces) may be sent with electronic 
option Delivery Confirmation service.
    c. Package Services mail may be sent with special handling or, for 
Package

[[Page 40782]]

Services parcels only, electronic option Delivery Confirmation service 
or electronic option Signature Confirmation service.
* * * * *

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 pieces may be sent with Certified Mail service 
or special handing, or, for First-Class Mail parcels only, electronic 
option Delivery Confirmation service or electronic option Signature 
Confirmation service.
    b. Priority Mail pieces may be sent with Certified Mail service, 
special handing, electronic option Delivery Confirmation, or electronic 
option Signature Confirmation.
    c. Standard Mail pieces subject to the residual shape surcharge 
(except Customized MarketMail) may be sent with electronic option 
Delivery Confirmation service.
    d. Package Services mail may be sent with special handling or, for 
Package Services parcels only, electronic option Delivery Confirmation 
service or electronic option Signature Confirmation service.
* * * * *

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 part 111 to reflect these 
changes will be published.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-17351 Filed 7-8-03; 8:45 am]
BILLING CODE 7710-12-P