[Federal Register Volume 68, Number 137 (Thursday, July 17, 2003)]
[Notices]
[Pages 42431-42434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18109]


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POSTAL SERVICE


Changes in Domestic Mail Classifications

AGENCY: Postal Service.

ACTION: Notice of implementation of changes to the Domestic Mail 
Classification Schedule.

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SUMMARY: This notice sets forth the changes to the Domestic Mail 
Classification Schedule to be implemented as a result of the Decision 
of the Governors of the United States Postal Service on the Recommended 
Decision of the Postal Rate Commission Approving Stipulation and 
Agreement for Customized Market Mail Minor Classification Changes, 
Docket No. MC2003-1.

EFFECTIVE DATE: August 10, 2003.

FOR FURTHER INFORMATION CONTACT: Daniel J. Foucheaux, Jr., (202) 268-
2989.

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 
Market Mail 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

[[Page 42432]]

No. MC2003-1. The PRC recommended that the Postal Service proposal for 
Customized Market Mail be established as a permanent classification.
    Pursuant to 39 U.S.C. 3625, the Governors of the United States 
Postal Service acted on the PRC's recommendations on June 27, 2003. In 
the Decision of the Governors of the United States Postal Service on 
the Recommended Decision of the Postal Rate Commission Approving 
Stipulation and Agreement for Customized Market Mail Minor 
Classification Changes, Docket No. MC2003-1, the Governors of the 
Postal Service approved the recommended decision. In accordance with 
Resolution 03-9, the Board of Governors established an implementation 
date of August 10, 2003 on which the approved classifications for 
Customized Market Mail take effect. The attachments to the Governors' 
Decision, setting forth the classification changes ordered into effect 
by the Governors, are set forth below.
    In accordance with the Decision of the Governors and Resolution No. 
03-9 of the Board of Governors, the Postal Service hereby gives notice 
that the classification changes set forth below will become effective 
at 12:01 a.m. on August 10, 2003.

Attachment A to the Decision of the Governors of the United States 
Postal Service on the Recommended Decision of the Postal Rate 
Commission Approving Stipulation and Agreement for Customized Market 
Mail Minor Classification Changes, Docket No. MC2003-1 (Additions 
Underlined; Deletions in Brackets)

     Standard Mail Rate Schedule 321A; Regular Presorted Categories
------------------------------------------------------------------------
                                                                  Rate
------------------------------------------------------------------------
Letter, minimum piece rate:
  Piece Rate
    Basic.....................................................    $0.268
    3/5-digit.................................................     0.248
  Destination Entry Discounts
    BMC.......................................................     0.021
    SCF.......................................................     0.026
Nonletters, minimum piece rate:
  Piece Rate
    Basic.....................................................     0.344
    3/5-digit.................................................     0.288
  Destination Entry Discounts
    BMC.......................................................     0.021
    SCF.......................................................     0.026
Nonletters, piece and pound rate:
  Piece Rate
    Basic.....................................................     0.198
    3/5-digit.................................................     0.142
    Pound Rate................................................     0.708
  Destination Entry Discounts (off pound rate)
    BMC.......................................................     0.100
    SCF.......................................................    0.125
------------------------------------------------------------------------
Schedule 321A Notes:
1. A fee of $150.00 must be paid each 12-month period for each bulk
  mailing permit.
2. Residual shape pieces are subject to a surcharge of $0.23 per-piece.
  For parcel barcode discount, deduct $0.03 per-piece (machinable
  parcels only).
3. For nonletters, the mailer pays either the minimum piece rate or the
  pound rate, whichever is higher.
4. Nonmachinable letters are subject to a $0.04 nonmachinable surcharge.
 
5. Pieces entered as Customized Market Mail, as defined in DMCS section
  321.22, are subject to the nondestination entry, nonletter minimum per-
  piece basic rate and the residual shape surcharge.


    Standard Mail Rate Schedule 323A; Nonprofit Presorted Categories
------------------------------------------------------------------------
                                                                  Rate
------------------------------------------------------------------------
Letters, minimum piece rate:
  Piece Rate
    Basic.....................................................    $0.165
    3/5-digit.................................................     0.153
  Destination Entry Discounts
    BMC.......................................................     0.021
    SCF.......................................................     0.026
Nonletters, minimum piece rate:
  Piece Rate
    Basic.....................................................     0.230
    3/5-digit.................................................     0.183
  Destination Entry Discounts
    BMC.......................................................     0.021
    SCF.......................................................     0.026
Nonletters, piece and pound rate:
  Piece Rate
    Basic.....................................................     0.110
    3/5-digit.................................................     0.063
  Pound Rate..................................................     0.584
  Destination Entry Discounts (off pound rate)
    BMC.......................................................     0.100
    SCF.......................................................    0.125
------------------------------------------------------------------------
Schedule 323A Notes:
\1\ A fee of $150.00 must be paid each 12-month period for each bulk
  mailing permit.
\2\ Residual shape pieces are subject to a surcharge of $0.23 per-piece.
  For parcel barcode discount, deduct $0.03 per-piece (nonmachinable
  parcels only).
\3\ For nonletters, the mailer pays either the minimum piece rate or the
  pound rate, whichever is higher.
\4\ Nonmachinable letters are subject to a $0.02 nonmachinable
  surcharge.
\5\ Pieces entered as Customized Market Mail, as defined in DMCS
  sections 321.22 and 323.22, are subject to the nondestination entry,
  nonletter minimum per-piece basic rate and the residual shape
  surcharge.

Attachment B to the Decision of the Governors of the United States 
Postal Service on the Recommended Decision of the Postal Rate 
Commission Approving Stipulation and Agreement for Customized Market 
Mail Minor Classification Changes, Docket No. MC2003-1 (Additions 
Underlined; Deletions in Brackets)

First-Class Mail Classification Schedule

210 DEFINITION
    Any matter eligible for mailing, except Regular and Nonprofit 
Presort category mail entered as Customized Market Mail under sections 
321.22 and 323.22, may, at the option of the mailer, be mailed as 
First-Class Mail. The following must be mailed as First-Class Mail, 
unless mailed as Express Mail or exempt under title 39, United States 
Code, or except as authorized under sections 344.12, 344.23 and 443:
    a. Mail sealed against postal inspection as set forth in section 
5000;
    b. Matter wholly or partially in handwriting or typewriting except 
as specifically permitted by sections 312, 313, 520, 544.2, and 446;
    c. Matter having the character of actual and personal 
correspondence except as specifically permitted by sections 312, 313, 
520, 544.2, and 446; and
    d. Bills and statements of account.
* * * * *

Standard Mail Classification Schedule

* * * * *
320 DESCRIPTION OF SUBCLASSES

321 Regular Subclass

* * * * *

321.2 Presort Rate Categories

* * * * *
    321.22 Basic Rate Categories.
    The basic rate categories apply to presort rate category mail not 
mailed under section 321.23, and to all mail entered as Customized 
Market Mail (CMM). CMM must be marked and bear endorsements as 
specified by the Postal Service, and must meet the preparation, 
addressing, and acceptance requirements specified by the Postal 
Service. Notwithstanding section 6020, Customized Market Mail may be 
nonrectangular in shape. The following size standards apply to 
Customized Market Mail:
    a. Thickness: at least 0.007 inch and no more than 0.75 inch.
    b. Length: at least 5 inches and no more than 15 inches, measured 
for nonrectangular shapes as specified by the Postal Service.

[[Page 42433]]

    c. Height: at least 3.5 inches and no more than 12 inches, measured 
for nonrectangular shapes as specified by the Postal Service.
* * * * *

321.4 Destination Entry Discounts

    The destination entry discounts apply to Regular subclass mail, 
except Regular Presort category mail entered as Customized Market Mail 
under section 321.22, prepared as specified by the Postal Service and 
addressed for delivery within the service area of the BMC (or auxiliary 
service facility), or sectional center facility (SCF), at which it is 
entered, as defined by the Postal Service.

321.5 Residual Shape Surcharge

    Regular subclass mail is subject to a surcharge if it is entered as 
Customized Market Mail under section 321.22 or is prepared as a parcel 
or if it is not letter or flat shaped.

321.6 Barcode Discount

    The barcode discount applies to Regular Subclass mail, except 
Regular Presort category mail entered as Customized Market Mail under 
section 321.22, that is subject to the residual shape surcharge in 
321.5, is entered at designated facilities, bears a barcode specified 
by the Postal Service, is prepared as specified by the Postal Service, 
and meets all other preparation and machinability requirements of the 
Postal Service.

321.7 Nonmachinable Surcharge

    The nonmachinable surcharge applies to Regular presort category 
letter-sized pieces, except Regular Presort category mail entered as 
Customized Market Mail under section 321.22, (i) that do not meet the 
machinability requirements specified by the Postal Service; or (ii) for 
which manual processing is requested.
* * * * *

323 Nonprofit Subclass

* * * * *

323.2 Presort Rate Categories

* * * * *
    323.22 Basic Rate Categories.
    The basic rate categories apply to presort rate category mail not 
mailed under section 322.23, and to all mail entered as Customized 
Market Mail, as defined in section 321.22.
* * * * *

323.4 Destination Entry Discounts

    Destination entry discounts apply to Nonprofit subclass mail, 
except Nonprofit Presort category mail entered as Customized Market 
Mail under section 323.22, prepared as specified by the Postal Service 
and addressed for delivery within the service area of the BMC (or 
auxiliary service facility) or sectional center facility (SCF) at which 
it is entered, as defined by the Postal Service.

323.5 Residual Shape Surcharge

    Nonprofit subclass mail is subject to a surcharge if it is entered 
as Customized Market Mail under section 323.22 or is prepared as a 
parcel or if it is not letter or flat shaped.

323.6 Barcode Discount

    The barcode discount applies to Nonprofit subclass mail, except 
Nonprofit Presort category mail entered as Customized Market Mail under 
section 323.22, that is subject to the residual shape surcharge in 
323.5, is entered at designated facilities, bears a barcode specified 
by the Postal Service, is prepared as specified by the Postal Service 
and meets all other preparation and machinability requirements of the 
Postal Service.

323.7 Nonmachinable Surcharge

    The nonmachinable surcharge applies to Nonprofit presort category 
letter-sized pieces, except Nonprofit Presort category mail entered as 
Customized Market Mail under section 323.22, (i) that do not meet the 
machinability requirements specified by the Postal Service; or (ii) for 
which manual processing is requested.
* * * * *
330 PHYSICAL LIMITATIONS
* * * * *
340 POSTAGE AND PREPARATION
* * * * *

344 Attachments and Enclosures

344.1 General

    First-Class Mail may be attached to or enclosed in Standard Mail, 
except Regular and Nonprofit Presort category mail entered as 
Customized Market Mail under sections 321.22 and 323.22. The piece must 
be marked as specified by the Postal Service. Except as provided in 
section 344.2, additional postage must be paid for the attachment or 
enclosure as if it had been mailed separately. Otherwise, the entire 
combined piece is subject to the First-Class rate for which it 
qualifies.
* * * * *
350 DEPOSIT AND DELIVERY
* * * * *

353 Forwarding and Return

    Undeliverable-as-addressed Standard Mail, except Regular and 
Nonprofit Presort category mail entered as Customized Market Mail under 
sections 321.22 and 323.22, will be returned on request of the mailer, 
or forwarded and returned on request of the mailer. Undeliverable-as-
addressed combined First-Class and Standard Mail pieces will be 
returned as specified by the Postal Service. Except as provided in 
section 935, the applicable First-Class Mail rate is charged for each 
piece receiving return only service. Except as provided in section 936, 
charges for forwarding-and-return service are assessed only on those 
pieces which cannot be forwarded and are returned. Except as provided 
in sections 935 and 936, the charge for those returned pieces is the 
appropriate First-Class Mail rate for the piece plus that rate 
multiplied by a factor equal to the number of Standard Mail pieces 
nationwide that are successfully forwarded for every one piece that 
cannot be forwarded and must be returned.
360 ANCILLARY SERVICES

361 All Subclasses

    All Standard Mail, except Regular and Nonprofit Presort category 
mail entered as Customized Market Mail under sections 321.22 and 
323.22, will receive the following services upon payment of the 
appropriate fees:

------------------------------------------------------------------------
                           Service                             Schedule
------------------------------------------------------------------------
a. Address correction.......................................         911
b. Certificates of mailing indicating that a specified               947
 number of pieces have been mailed..........................
------------------------------------------------------------------------

    Certificates of mailing are not available for Standard Mail when 
postage is paid with permit imprint.

362 Regular and Nonprofit

    362.1 Regular and Nonprofit subclass mail, except Regular and 
Nonprofit Presort category mail entered as Customized Market Mail under 
sections 321.22 and 323.22, will receive the following additional 
services upon payment of the appropriate fees.

------------------------------------------------------------------------
                           Service                             Schedule
------------------------------------------------------------------------
a. Bulk Parcel Return Service...............................         935
b. Shipper-Paid Forwarding..................................         936
------------------------------------------------------------------------

    362.2 Regular and Nonprofit subclass mail subject to the residual 
shape surcharge in 321.5 and 323.6, respectively, except Regular and 
Nonprofit Presort category mail entered as Customized Market Mail under

[[Page 42434]]

sections 321.22 and 323.22, will receive the following additional 
services upon payment of the appropriate fees.

------------------------------------------------------------------------
                           Service                             Schedule
------------------------------------------------------------------------
a. Bulk Insurance...........................................         943
b. Return Receipt (merchandise only)........................         945
c. Delivery Confirmation....................................         948
------------------------------------------------------------------------

    Bulk insurance may not be used selectively for individual pieces in 
a multi-piece Standard Mail mailing unless specific methods approved by 
the Postal Service for determining and verifying postage are followed.

363 Regular

    Regular subclass mail, except Regular Presort category mail entered 
as Customized Market Mail under sections 321.22, will receive the 
following additional services upon payment of the appropriate fees:

------------------------------------------------------------------------
                           Service                             Schedule
------------------------------------------------------------------------
a. Netpost Mailing Online...................................         981
------------------------------------------------------------------------

365 Nonprofit

    Nonprofit subclass mail, except Nonprofit Presort category mail 
entered as Customized Market Mail under sections 323.22, will receive 
the following additional services upon payment of the appropriate fees:

------------------------------------------------------------------------
                           Service                             Schedule
------------------------------------------------------------------------
a. Netpost Mailing Online (starting on a date to be                  981
 specified by the Postal Service)...........................
------------------------------------------------------------------------

* * * * *

Package Services Classification Schedule

510 DEFINITION

511 General

    Any mailable matter may be mailed as Package Services mail except:
    a. Matter required to be mailed as First-Class Mail;
    b. Regular and Nonprofit Presort category mail entered as 
Customized Market Mail under sections 321.22 and 323.22; and
    [b]c. Copies of a publication that is entered as Periodicals class 
mail, except copies sent by a printer to a publisher, and except copies 
that would have traveled at the former second-class transient rate. 
(The transient rate applied to individual copies of second-class mail 
(currently Periodicals class mail) forwarded and mailed by the public, 
as well as to certain sample copies mailed by publishers.)
* * * * *

Special Services Classification Schedule

910 ADDRESSING
911 ADDRESS CORRECTION SERVICE
* * * * *

911.2 Availability

    911.21 Address Correction service is available to mailers of 
postage prepaid mail of all classes, except for mail addressed for 
delivery by military personnel at any military installation and Regular 
and Nonprofit Presort category mail entered as Customized Market Mail 
under sections 321.22 and 323.22. Address Correction Service is 
mandatory for Periodicals class mail.
* * * * *
940 ACCOUNTABILITY AND RECEIPTS
* * * * *
943 INSURANCE
* * * * *

943.2 General Insurance

* * * * *

943.22 Availability

    943.221 General Insurance is available for mail sent under the 
following classification schedules:
    a. First-Class Mail, if containing matter that may be mailed as 
Standard Mail or Package Services;
    b. Package Services;
    c. Regular and Nonprofit subclasses of Standard Mail, for Bulk 
Insurance only, for mail subject to residual shape surcharge, except 
Regular and Nonprofit Presort category mail entered as Customized 
Market Mail under sections 321.22 and 323.22.
* * * * *
945 RETURN RECEIPT
* * * * *

945.2 Return Receipt for Merchandise

* * * * *
    945.22 Availability.
    945.221 Return Receipt for Merchandise is available for merchandise 
sent under the following sections or classification schedules:
    a. Priority Mail;
    b. Standard Mail pieces subject to the residual shape surcharge, 
except Regular and Nonprofit Presort category mail entered as 
Customized Market Mail under sections 321.22 and 323.22;
    c. Package Services.
* * * * *
947 CERTIFICATE OF MAILING
* * * * *

947.2 Availability

    947.21 Certificate of Mailing service is available for matter sent 
using any class of mail, except Regular and Nonprofit Presort category 
mail entered as Customized Market Mail under sections 321.22 and 
323.22.
* * * * *
948 DELIVERY CONFIRMATION
* * * * *

948.2 Availability

    948.21 Delivery Confirmation service is available for First-Class 
Letters and Sealed Parcels subclass mail that is parcel-shaped, as 
specified by the Postal Service; Priority Mail; Standard Mail, in the 
Regular and Nonprofit subclasses, that is subject to the residual shape 
surcharge, except Regular and Nonprofit Presort category mail entered 
as Customized Market Mail under sections 321.22 and 323.22; and Package 
Services mail that is parcel-shaped, as specified by the Postal 
Service.
* * * * *

General Definitions, Terms and Conditions

* * * * *
6000 MAILABLE MATTER
* * * * *

6020 Minimum Size Standards

    Except as provided in sections 321.22 and 323.22, [T]the following 
minimum size standards apply to all mailable matter:
    a. All items must be at least 0.007 inch thick, and
    b. All items, other than keys and identification devices, which are 
0.25 inch thick or less must be
    i. Rectangular in shape,
    ii. At least 3.5 inches in width, and
    iii. At least 5 inches in length.
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-18109 Filed 7-16-03; 8:45 am]
BILLING CODE 7710-12-P