[Federal Register Volume 68, Number 167 (Thursday, August 28, 2003)]
[Proposed Rules]
[Pages 51750-51758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22048]


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POSTAL SERVICE

39 CFR Part 111


Changes to the Move Update and Address Matching Requirements

AGENCY: Postal Service.

ACTION: Further notice of proposed rulemaking.

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SUMMARY: This is a special interim Advance Notice incorporating 
mailers' comments from the May 31, 2002 Federal Register (67 FR 38041-
38043), Advance Notice of Proposed Rulemaking and Request for Comment. 
Prior to publishing a final rule, the Postal Service is requesting 
additional comments from the mailing industry on the proposed changes 
to current Domestic Mail Manual (DMM) standards that concern Move 
Update and/or Address Matching requirements. These proposed standards 
address specific mail preparation requirements that can effectively 
assist in reducing the negative impact on delivery service and costs 
associated with Undeliverable-As-Addressed (UAA) Mail. Due to the 
significant ongoing UAA mail burden noted in omnibus rate case Docket 
No. R2001-1, changes are deemed necessary to help mitigate the UAA mail 
impact on the mailing industry and the Postal Service.

DATES: Comments must be received on or before September 29, 2003. The 
Postal Service intends to pursue implementation of these proposals 
within the framework of a future formal rule or rate making process. 
Please note that a specific rule or rate making will not be forthcoming 
as a result of this notice, rather any change will be integrated into a 
future rule or rate making that is part of the Product Redesign 
initiative or omnibus rate case. In no event will the proposals become 
effective sooner than 18 months from the date of a future final rule 
publication.

ADDRESSES: Written comments should be mailed or delivered to the Office 
of Product Management--Addressing, National Customer Support Center, 
United States Postal Service, 6060 Primacy Pkwy, Ste 201, Memphis, TN 
38188-0001. Comments may also be transmitted via facsimile to 901-681-
4440 or via e-mail to [email protected]. Copies of all written 
comments will be available for inspection and photocopying at USPS 
Headquarters Library, 475 L'Enfant Plaza, SW., 11th Floor N, 
Washington, DC 20260-1450 between 9 a.m. and 4 p.m., Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Wayne Orbke, 901-681-4658; Charles B. 
Hunt, 901-681-4651; or Neil Berger, 703-292-3645.

SUPPLEMENTARY INFORMATION: On May 31, 2002, the Postal Service 
requested comments concerning changes to the Move Update and Address 
Matching standards (Advance Notice). 67 FR 38041-38043. The Postal 
Service did not suggest specific Domestic Mail Manual provisions at 
that time, but sought public comments on five general proposals. As 
discussed in that notice, changes to these standards were recommended 
in the 2001 Mailing Industry Task Force, a workgroup joining mailing 
industry and Postal Service leaders, as an important means to decrease 
the volume of UAA mail and thereby hold down postal processing and 
delivery costs.
    Thirty-six comments were submitted in response to the Advance 
Notice. After review of the comments, the Postal Service is proposing 
specific DMM changes to the Move Update and Address Matching standards 
and seeks public comment concerning these revisions.
    Consistent with the recommendation of the Mailing Industry Task 
Force, the Postal Service believes that appropriate revisions to the 
standards are vital to the continued vitality of the postal system and 
the interests of mailers. The Postal Service is committed to taking 
prudent steps in coordination with the mailing industry to create and 
maintain a cost-efficient mailstream. Over the years, the Service has 
invested heavily to create an automated mailstream to help drive costs 
out of the delivery system. However, although an efficient automated 
mailstream depends on accurate barcodes for success, barcodes are only 
as accurate as the quality of the addressing information that is their 
foundation. As discussed in the Advance Notice, revisions to the Move 
Update and Address Matching standards are needed to improve the level 
of address quality for mailings entered at discounted rates. The Postal 
Service remains convinced that high quality addressing, best possible 
depth of ZIP+4 codes, and (where applicable) accurate delivery point 
barcodes that result in the delivery of the mailpiece to the intended 
recipient, in an efficient manner, should be primary objectives for 
mailers.
    The Advance Notice proposed five changes to existing address 
quality standards, including: (1) Expand the applicability of a Move 
Update requirement from Presorted and automation rate First-Class Mail 
to include Periodicals, Standard Mail, and Package Services, (2) 
increase the minimum frequency of Move Update processing from 180 days 
to 90 days, (3) remove the use of ancillary service endorsements with 
individual hardcopy notifications as a stand-alone option to satisfy 
the Move Update requirement, (4) increase the frequency of Address 
Matching processing for automation rate mail from 180 days to 90 days, 
and (5) require the use of monthly (instead of bimonthly) directory 
updates for address matching software.
    In addition to revisions to DMM standards, the Advance Notice also 
addressed the timing of the changes. When the Move Update requirement 
for First-Class Mail was instituted in 1997, a 9-month readiness period 
was provided. The Postal Service recognizes the magnitude of the 
adjustments that will have to be made both by the industry and the 
Service to implement the revisions proposed in this notice and will 
ensure that ample time is provided. It is not the intention of the 
Postal Service to create unreasonable barriers to discount rate 
qualification with these changes, but rather to improve the overall 
cost effectiveness of the mail delivery system and rate stability for 
all stakeholders.
    As stated in the Advance Notice, the evaluation and implementation 
of these proposals will continue to be stewarded by the Postal Service 
Product Management Group, within the framework of the Product Redesign 
effort.
    Part A of this notice summarizes the proposed changes and provides 
an analysis of comments received to the Advance Notice. Part B 
summarizes the changes to the DMM, followed by the text of the proposed 
DMM standards.

Part A

    Several comments were outside the scope of the changes that were 
proposed. These comments, such as

[[Page 51751]]

pursuing legislative changes, redefining the characteristics of a 
mailing list, etc., will not be discussed in this notice. Five 
proposals were described in the Advance Notice. Each proposal will be 
discussed separately:

(1) Move Update Requirement for All Classes of Mail

    The Postal Service proposes that the Move Update standard, which 
previously applied only to First-Class Mail, be extended to other 
classes (i.e. Periodicals, Standard Mail, and the Bound Printed Matter 
subclass of Package Services) (Please note, Package Services was 
originally proposed but was amended to Bound Printed Matter in response 
to the comments received). Given the growth and significant impact of 
UAA mail across all classes of mail, the Postal Service believes it is 
reasonable to adopt the same standard for those seeking to use 
discounted rates in other classes of mail. However, the Postal Service 
also desires that this be done in a manner that does not unreasonably 
impact the mission and flexibility of each class of mail. To this end, 
the Postal Service will, where feasible, incorporate features suggested 
in the comments and add tools that can assist the expansion of Move 
Update to all classes. As one example, suggested in the comments, the 
Postal Service has already authorized the printing of the Address 
Change Service (ACS) participant code on the mailpiece in a location 
other than within the mailer's keyline of the address block. This 
option became effective October 3, 2002 (see Postal Bulletin 22086, 
October 3, 2002) and was incorporated into the online version of DMM 
M013 (http://pe.usps.gov).
Acceptable Methods
    Six commenters expressed support for the proposed expansion of the 
Move Update requirement beyond Presorted and automation rate First-
Class Mail to other classes of mail.
    Several commenters stated that unless the status quo were 
maintained, specifically use of ancillary service endorsements as a 
qualifier, they would not be able to meet the proposed Move Update 
requirement. The Postal Service respectfully disagrees on this point 
and believes that the methods that will be available upon 
implementation are flexible and efficient and that they will meet the 
needs of all mailers seeking discounted rates when Move Update is a 
requirement. The current list of authorized methods includes the 
following:
    [sbull] National Change of Address (NCOA) processing.
    [sbull] NCOALink processing (scheduled availability 
October 1, 2003).
    [sbull] FASTforward[reg] MLOCR processing.
    [sbull] FASTforward[reg] Mailing List Correction (MLC) 
processing.
    [sbull] Address Change Service (ACS).
    [sbull] Postal Service Certification of Mailer Move Update Process, 
administered by the National Customer Support Center (NCSC).
    [sbull] NCSC-approved alternate method for mailers with certain 
legitimate restrictions to incorporating Postal Service supplied 
change-of-address information into their mailing address lists.
    In addition to the seven authorized Move Update methods listed 
above, as suggested by four of the commenters, addresses utilizing any 
of the three alternative addressing formats prescribed in DMM A020 
(e.g., ``John Doe or Current Occupant'') will not be subject to the 
Move Update standard. The Postal Service agrees that this exemption is 
warranted because mail bearing an alternative address format does not 
cause the Postal Service to incur additional redirection processing or 
disposal costs.
    Another step already taken by the Postal Service to assist mailers 
who may not be able to process electronic ACS data files is the 
augmentation of ACS with a hybrid hardcopy address correction 
notification. This ACS option brings both quality and efficiency to the 
process by providing legible hardcopy printout notifications to mailers 
who desire them. This option is discussed in detail in the third 
proposal narrative regarding ancillary service endorsements.
Phase-in for Other Mail Classes
    One commenter suggested a phased approach to implementation, with 
First-Class Mail being the first to incorporate the new requirements in 
18 months from the publication date of the final rule, followed by the 
other mail classes 6 months to 1 year later. The Postal Service 
believes that there are several sound reasons why the phased approach 
suggested is not warranted in this case: (1) Since the publication of 
Federal Register Advance Notice (67 FR 38041-38043), the Postal Service 
has decided to integrate the changes proposed in this notice into a 
future formal Product Redesign initiative or omnibus rate case which 
will provide sufficient time for mailers to incorporate the new 
requirements, and significantly more time than the nine months allotted 
for the Move Update requirement originally instituted for First-Class 
Mail service in 1997, (2) the technical environment and capabilities of 
the mailing industry are more advanced and progressive than when 
Classification Reform was being implemented in 1996/97, (3) many 
mailers who utilize other mail classes also send First-Class Mail items 
and are familiar with the Move Update requirement, (4) the Postal 
Service has made significant efforts since 1996 to acquaint the mailing 
industry with the necessity of effective Move Update methodology, and 
(5) a uniform implementation will provide needed consistency for all 
concerned.
    A majority of addresses used by mailers today for Periodicals, 
Standard Mail, and Package Services mail are also used in Presorted and 
automation rate First-Class Mail and therefore already receive ``Move 
Update treatment''. This is consistent with the policy established in 
1997 for First-Class Mail whereby an updated address originally used on 
another class of mail meets the Move Update requirement for First-Class 
Mail.
Additional Discounts
    Several commenters stated that incentives would be needed to offset 
their cost of Move Update processing where it has previously not been a 
requirement, as well as for the increased frequency requirements of 
Move Update for First-Class Mail and Address Matching for all classes.
    The Postal Service believes that ensuring that mail, regardless of 
the class of mail, is prepared to the correct recipient and address, 
and thereby removing UAA mail from the mailstream ultimately leads to 
cost savings for both the mailer and the Postal Service. In addition to 
helping control Postal Service costs and their associated impact on 
rates, the increase in address quality will benefit mailers by reducing 
wasted mail production costs and loss of business opportunities that 
result from UAA mail.
Periodicals
    One commenter stated that a Move Update requirement for Periodicals 
was ``ludicrous.''
    The Postal Service finds this comment somewhat puzzling in that 
Periodicals mail has long included an address correction requirement. 
This requirement is found in the printed request for change-of-address 
information included in the identification statement that each 
publication must show. This request for change-of-address information 
may also appear on the label carrier or the container enclosing 
publications prepared in envelopes, closed wrappers or polybags. This 
proposal merely formalizes the requirement and methods.

[[Page 51752]]

Ease of Use
    The same commenter also stated that the Move Update requirement 
should be more ``user-friendly'' and recognize mailers who have their 
own processes in place to accurately reflect the relocation of their 
customers for mailing purposes.
    The Postal Service agrees with this position; it was the driving 
force behind the creation of the Mailer Move Update Process 
Certification (previously known as the 99% rule alternate method) for 
Move Update compliance. Under this method, mailers can have their own 
Move Update process tested by the Postal Service. If the test 
demonstrates that the mailer's addresses are 99% accurate when compared 
with the Postal Service change-of-address file, the mailer will be 
certified as having addresses that meet the Move Update requirement for 
a period of 1 to 2 years (depending on the length of time the mailer 
has used this option) from the date of the test.
Standard Mail
    Eight commenters expressed concerns regarding possible negative 
impact to Standard Mail.
    Although the Postal Service understands this issue, it believes 
that the requirement is both appropriate and fair for Standard Mail 
automation rate, Presorted rate, and Enhanced Carrier Route rate 
eligibility. Many mailers of Standard Mail successfully utilize the 
NCOA and FASTforward[reg] MLC systems to improve the quality 
of their lists. Therefore, this requirement should not have a major 
impact on their business models. The Postal Service also believes that 
the choices available to meet the Move Update requirement, along with 
the wide use of alternative addressing formats on Standard Mail (e.g. 
``John Doe or Current Resident''), provide sufficient flexibility for 
meeting the requirement and will, therefore, not pose a greater 
challenge for mailers of Standard Mail than for mailers of other 
classes.
    One commenter questioned the proposed application of the Move 
Update provisions to Standard Mail because unendorsed Standard Mail is 
disposed of as waste, if undeliverable.
    Although it is true that Postal Service procedures call for 
disposal of such mail (as well as unendorsed BPM), there is a cost 
associated with this action. The Postal Service incurs an average cost 
of 4.5 cents per piece for disposal. Additionally, it is doubtful that 
the sender's intent is for their strategic message not to be delivered 
and miss potential business opportunities. To continue this scenario is 
not in the best interests of a cost-efficient mailstream, and the 
Postal Service maintains that a discount should not be provided for 
mail bearing addresses where no steps have been taken to mitigate this 
occurrence.
Bound Printed Matter
    One commenter voiced concern regarding possible negative impact to 
Bound Printed Matter (BPM) mailings.
    After due consideration, the Postal Service believes that the Move 
Update requirement is both appropriate and fair for BPM Presorted and 
Carrier Route qualification, including machinable parcels claiming a 
parcel barcoded discount or flat-size pieces claiming a POSTNET 
barcoded discount. The Postal Service does not believe that the Move 
Update requirement will pose a greater challenge to BPM mailers than to 
those in using other classes of mail. A majority of BPM consists of the 
same content as Standard Mail (e.g., advertising, catalogs, and 
directories) and would, except for weight, qualify as Standard Mail. In 
fact, many mailers ``bundle'' individual Standard Mail pieces for the 
same address and create a single addressed BPM mailpiece.
    After due consideration of the comments expressed, the Postal 
Service proposes to expand the Move Update standard to include 
Periodicals, Standard Mail, and the Bound Printed Matter subclass of 
Package Services mail.

(2) Frequency of Use of Move Update Processing

    The Postal Service proposes to increase the minimum frequency of 
Move Update processing from 180 days to 95 days (90 days was originally 
proposed but was amended to 95 days in response to the comments 
received).
    Five commenters voiced general support for the proposal, while 
several other commenters had specific concerns regarding this Move 
Update provision.
    One commenter expressed concern that with the requirement to update 
addresses more frequently, the existing NCOA licensees would not be 
able to keep up with the demand for Move Update processing.
    The Postal Service believes the existing group of licensees has the 
capacity to provide the service within the terms of their license 
(process and return address files within 7 business days of receipt). 
The Postal Service will continue to monitor this situation and if it 
determines that a justifiable need exists, it will increase the number 
of licensees.
    One commenter stated that mailers using an NCSC-approved alternate 
Move Update method would not be able to meet the proposed standard, 
because they have certain legitimate restrictions on incorporating 
Postal Service-supplied change-of-address information into their 
mailing addresses.
    The Postal Service believes this change will not have any impact on 
these alternate processes. Under existing standards, the mailer must 
contact an addressee within 30 days after receiving the change-of-
address information and incorporate the change of address within 30 
days of receipt. These timeframes already fall within the proposed 
requirement.
    One commenter voiced concern that the reduced window for processing 
will have a negative effect due to the planning cycles currently in use 
by many mailers.
    The Postal Service understands that certain operational changes are 
necessary for the mailing industry to implement this proposal. The UAA 
mail problem is of such magnitude that it is in the best interests of 
all stakeholders to modify current practices in order to mitigate it. 
The Postal Service also recognizes that some mailers who are 
proactively trying to reduce UAA mail within their own operations have 
already set quarterly production cycles for their Move Update and 
Address Matching processing. To allow mailers to continue these 
processing cycles and not have to periodically make additional 
processing runs due to variations in calendar dates, the Postal Service 
proposes that the processing requirement, which is based on the number 
of day prior to mailing, will be modified from the originally proposed 
90 days to 95 days.

(3) Removal of Manual Hardcopy Notifications as a Move Update Option

Ancillary Service Endorsements
    The Postal Service proposes to remove the stand-alone use of 
ancillary service endorsements as an option to satisfy the Move Update 
standard.
    Many of the commenters perceived that the purpose of this proposal 
was to totally eliminate all use of ancillary service endorsements.
    To clarify, this is not the case. All ancillary service 
endorsements will still be available as mailpiece handling instructions 
for commercial mail. This proposal is designed to effectively separate 
basic mailpiece-handling instructions, which is the core function of 
endorsements, from efficient address correction notification methods 
where Move Update activity is required. Under

[[Page 51753]]

this proposal, stand-alone ancillary service endorsement use will not 
be recognized as a method to satisfy the Move Update standard. 
Ancillary Service Endorsements may still be used on mail with addresses 
that are updated via one of the approved Move Update methods (e.g., 
Address Change Service, NCOA, FASTforward[reg], etc.). More than six 
years of practical experience with the Move Update requirement for 
First-Class Mail has shown that individual manual hardcopy 
notifications generated from the stand-alone use of ancillary service 
endorsements are the least effective and most costly Move Update method 
for all concerned.
``Return Service Requested''
    Additionally, one commenter pointed out that mailers who desire 
mailpieces to be returned and not forwarded would be penalized by this 
proposal, as there is currently no electronic ACS option available for 
returns.
    The Postal Service agrees that a post-mailing electronic option 
should be available in this instance and, if this proposal is adopted, 
will take the necessary action prior to implementation to make the 
``Return Service Requested'' endorsement available within the ACS 
system.
Hardcopy Notices
    Several commenters indicated that, for various reasons, hardcopy 
address change notices generated from stand-alone ancillary service 
endorsements are the only method they can use to meet a Move Update 
requirement. They expressed a concern that the ACS system was not a 
viable alternative for them.
    As previously explained, the Postal Service believes that the 
options available to comply with Move Update standards are both 
flexible and efficient enough to meet the needs of all parties seeking 
discounted rates.
    Specifically to this point, at the time Move Update first became a 
requirement for First-Class Mail automation and Presorted rates, the 
ability of the Postal Service to provide a robust electronic/hardcopy 
hybrid ACS service did not exist as it does today. Since the inception 
of the Move Update standard, the Postal Service has worked to create 
enough flexibility within the ACS system to meet mailers' needs, while 
at the same time lowering the cost. There is, for all practical 
purposes, a limitless supply of ACS participant codes available that 
can be used in those situations where multiple departments and/or list 
situations are involved. Additionally, as noted earlier in the Summary 
section, the option for mailers to print the ACS participant code on 
the mailpiece itself was made effective on October 3, 2002.
    The end-result of these efforts is the ACS printout notification 
option, which provides printable hardcopy notifications, in an 
electronic file, to those who desire them. This option provides quality 
in the form of a computer-generated report, timely fulfillment back to 
the sender so that the address corrections can be incorporated quickly 
to prevent future UAA mail, and a cost-effective process for both the 
mailer and the Postal Service.
    The Postal Service is convinced that this ACS hardcopy notification 
option is a viable alternative to stand-alone ancillary service 
endorsements since it provides ``best practice'' efficiency to the 
business of hardcopy notifications. In addition, effective January 1, 
2003, ACS change-of-address information is now available, at no 
additional charge, on CD-ROM media. This provides small- and medium-
sized mailers with an easy, cost-effective method for viewing, 
searching, and printing change-of-address records in order to update 
their address files manually.
    As put forth in the Advance Notice of May 31, 2002, individual 
hardcopy address correction notifications triggered from stand-alone 
use of ancillary service endorsements do not significantly reduce costs 
for either the mailer or the Postal Service. However, ancillary service 
endorsements used in conjunction with ACS do provide benefits not 
obtained by stand-alone use of ancillary service endorsements. Again, 
these facts cause the Postal Service to conclude that the existing 
(stand-alone) use of ancillary service endorsements and individual 
hardcopy notifications or return of UAA mailpieces will no longer be a 
permissible qualification method in and of itself to meet the Move 
Update requirement.

(4) Frequency of Use of Address Matching Software

    The Postal Service proposes to increase the minimum frequency of 
Address Matching processing for automation rate mail from 180 days to 
95 days (90 days was proposed in the Advance Notice but is now amended 
to 95 days in response to the comments received).
    Five commenters voiced general support for the proposal to increase 
the frequency of the required use of address matching software.
Schedule
    Four commenters recommended that the Postal Service develop a 
clearly defined schedule when software vendors and end-users must 
update and implement the Address Matching software changes.
    The Postal Service already has a clearly defined process in place 
for software developers to submit their Address Matching software for 
Coding Accuracy Support System (CASS) certification. As a condition for 
CASS certification, all changes in Address Matching software 
requirements are announced at the annual CASS ``Partnership in 
Tomorrow'' meeting each August. Generally, the required changes are 
effective the following July 31 (11 months later). Furthermore, current 
DMM A950 sets forth the schedule of frequency of use for Address 
Matching software and the Postal Service database.
Vendor Deadlines
    Several commenters urged the Postal Service to set timeframes and 
deadlines that vendors must meet for providing their updated products 
to end-users.
    Although the Postal Service understands the end-users' point of 
view, it is reluctant to regulate the business practices between 
vendors and their customers. The Postal Service is committed to taking 
the necessary steps to ensure that its product distribution timetables 
to the various vendors are met. If the vendor does not provide the 
software updates in a timely manner, the customer must determine 
whether to pursue a legal remedy or other action. As is the case with 
other industries, it is reasonable to expect that substandard vendors 
will lose their place in the market.
Reduced Processing Period
    One commenter voiced concern that the reduced window for processing 
will have a negative effect due to the planning cycles currently in use 
by many mailers.
    The Postal Service understands that certain operational changes are 
necessary for the mailing industry to implement this proposal. The UAA 
mail problem is of such magnitude that it is in the best interests of 
mailers and the Postal Service to modify current practices in order to 
mitigate it. The Postal Service also recognizes that some mailers who 
are proactively trying to reduce UAA mail within their own operations 
have set quarterly production cycles for their Move Update and Address 
Matching processing already. To allow mailers to continue these 
processing cycles and not have to periodically make additional 
processing runs due to variations in calendar dates, the processing 
requirement will be

[[Page 51754]]

modified from the proposed 90 days to 95 days.
    Another option currently available to mailers to assist with narrow 
processing windows is the use of Z4Change list matching as defined in 
DMM A950.3.2. Furthermore, in the interest of consistent processing 
requirements, it is proposed that the 90-day Address Matching standard 
for Periodicals and Standard Mail sent at carrier route rates be 
modified to 95 days. It should be noted that although concerns about 
the frequency of matching were also expressed when the 90-day carrier 
route rate requirement was first implemented, mailers were able to 
adjust their mailing processes to meet the list processing window.
    Due to the high rate of change in addressing data, the Postal 
Service believes that the benefits are worth the behavioral changes 
that the mailing industry and the Postal Service would have to make to 
reduce UAA mail volumes.
(5) Address Matching Directory Update Frequency
    The Postal Service proposes to require the use of monthly (instead 
of bimonthly) directory updates for address matching software. This 
proposal goes ``hand in hand'' with the revisions in the fourth 
proposal. That is, the adoption of one strategy without the other would 
sacrifice the desired improvement in efficiency and quality of the 
Address Matching process.
    One commenter felt that there was some confusion regarding the 
difference between the two.
    To clarify, the Postal Service respectfully points out that the 
fourth proposal from the Advance Notice modifies the cycle time in 
which addresses must be processed through Postal Service CASS-certified 
Address Matching software in order to qualify for discounted rates. 
This proposal modifies the cycle that the address directories used in 
conjunction with CASS-certified software must be updated prior to 
processing addresses.
    In order to ensure understanding of these standards, the Postal 
Service will provide further guidance concerning these processes in 
publications including the CASS Technical Guide, the Postal Bulletin, 
and the Mailer's Companion.

Part B

    It should be remembered that the following DMM revisions are 
proposals only and are presented to assist mailers with their review 
and comments. The proposed DMM changes below are to the current DMM 
which includes ``organizational'' changes made via Postal Bulletin 
22104, June 12, 2003. To view the current DMM go to http://pe.usps.gov.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act [5 U.S.C. 553(b), (c)] regarding proposed 
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on 
the following proposed revisions to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

PART 111--[AMENDED]

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

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

    2. Revise the Domestic Mail Manual as follow:

Domestic Mail Manual (DMM)

A ADDRESSING

A000 Basic Addressing

* * * * *

A030 Address Quality

1.0 MOVE UPDATE

1.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding by the periodic 
matching of a mailer's address records with customer-filed change-of-
address orders received and maintained by the USPS. For the purposes of 
this standard, address means a specific address associated with a 
specific occupant name. Addresses used on pieces claiming certain rates 
that are subject to the Move Update standard under 1.2 must meet these 
requirements:
    [Change ``180'' days to ``95'' days in 1.1a to read as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 1.4.
* * * * *
    [Change ``180'' days to ``95'' days in 1.1c to read as follows:]
    c. If an address used on a mailpiece in a mailing at one class of 
mail and rate is updated with an approved method (e.g., Address Change 
Service), the same address may be used during the following 95 days and 
meets the Move Update standard required in 1.2.

1.2 Mail Classes and Rates

    [Revise 1.2 to read as follows:]
    Except as provided in 1.3, addresses used on pieces claiming the 
rates listed for the following classes of mail, regardless of 
processing category and any required surcharges, must meet the Move 
Update standard:
    a. First-Class Mail, nonautomation Presorted rate and automation 
rates.
    b. Periodicals, all rates.
    c. Standard Mail, all rates.
    d. Bound Printed Matter, Presorted rate and carrier route rate.

1.3 Exception

    [Change ``First-Class Mail move update standard'' to ``Move Update 
standard'' in 1.3 to read as follows:]
    The Move Update standard does not apply to any mail bearing an 
alternative addressing format under A020.

1.4 USPS-Approved Methods

    [Revise 1.4 by removing 1.4f to read as follows:]
    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address (NCOA).
    c. FASTforward Mailing List Correction (MLC).
    d. FASTforward MLOCR processes (letter-size and flat-size mail 
only) if used each time before mail entry. If a mailpiece that 
initially uses FASTforward MLOCR processing is rejected and then 
entered into a Direct View Encoding Desk (DVED) operation (or similar 
system), the piece does not meet the Move Update standard. The name and 
address information on the piece must then be processed through a 
FASTforward RVE system to meet the Move Update standard. FASTforward 
RVE processes also meet the Move Update standard if used each time 
before mail entry. As provided in C010.6.0, a letter-size envelope 
containing a window that intrudes into the barcode clear zone (see 
C840) is not eligible for MLOCR or RVE FASTforward processing.
    e. Mailer Move Update Process Certification and USPS-approved 
alternative methods for mailers with legitimate restrictions on 
incorporating USPS-supplied change-of-address information into their 
mailing lists. The National Customer Support Center (see G043 for 
address) administers and approves both Mailer Move Update Process 
Certification and alternative methods.
* * * * *

[[Page 51755]]

3.0 CARRIER ROUTE ACCURACY

3.1 Basic Standards

    The carrier route accuracy standard is a means of ensuring that the 
carrier route code correctly matches the delivery address information. 
For the purposes of this standard, address means a specific address 
associated with a specific carrier route code. Addresses used on pieces 
claiming certain rates that are subject to the carrier route accuracy 
standard under 3.2 must meet these requirements:
    [Change ``within 90 days'' to ``within 95 days'' in 3.1a to read as 
follows:]
    a. Each address and associated carrier route code used on the 
mailpieces in a mailing must be updated within 95 days before the 
mailing date with one of the USPS-approved methods in 3.4. For the 
First-Class Mail automation carrier route rate and the Enhanced Carrier 
Route Standard Mail automation rate, USPS City State Product 
information must also be updated within 95 days before the mailing 
date.
* * * * *
    [Change ``within 90 days'' to ``within 95 days'' in 3.1c to read as 
follows:]
    c. If the carrier route code (and accuracy) of an address used on a 
mailpiece in a carrier route mailing at one class of mail and rate is 
updated with an approved method, the same address may be used during 
the following 95 days to meet the carrier route accuracy standard 
required for mailing at any other class of mail and rate.
* * * * *

A900 Customer Support

* * * * *

A950 Coding Accuracy Support System (CASS)

* * * * *
3.0 DATE OF ADDRESS MATCHING AND CODING

3.1 Update Standards

    [Revise 3.1 to read as follows:]
    Unless Z4CHANGE is used, all automation and carrier route mailings 
bearing addresses coded by any AIS product must be coded with current 
CASS-certified software and the current USPS database and meet these 
standards:
    a. Coding must be done within 95 days before the mailing date for 
all carrier route mailings and all automation rate mailings.
    b. All AIS products may be used immediately on release. New product 
releases must be installed in address matching systems no later than 45 
days after the release date. The overlap in dates for product use 
allows mailers adequate time to install the new data files and test 
their systems. Mailers are expected to update their systems with the 
latest data files as soon as practicable and not wait until the ``last 
permissible use'' date. Exhibit 3.1 defines the ``current USPS 
database'' product cycle.
    c. The mailer's signature on the postage statement certifies that 
this standard has been met for each address in the corresponding 
mailing presented to the USPS.

                Exhibit 3.1.--USPS Database Product Cycle
------------------------------------------------------------------------
        File release              Required use      Last permissible use
------------------------------------------------------------------------
                               Must begin no later     And must end no
  Use of file released on:            than:              later than:
------------------------------------------------------------------------
January 15..................  March 1.............  March 31
February 15.................  April 1.............  April 30
March 15....................  May 1...............  May 31
April 15....................  June 1..............  June 30
May 15......................  July 1..............  July 31
June 15.....................  August 1............  August 31
July 15.....................  September 1.........  September 30
August 15...................  October 1...........  October 31
September 15................  November 1..........  November 30
October 15..................  December 1..........  December 31
November 15.................  January 1...........  January 31
December 15.................  February 1..........  February 28/29
------------------------------------------------------------------------

* * * * *

E ELIGIBILITY

* * * * *

E200 Periodicals

* * * * *

E220 Presorted Rates

1.0 BASIC INFORMATION
* * * * *

1.3 Address Quality

    All pieces in a Periodicals Presorted rate mailing must bear a 
delivery address that includes the correct ZIP Code or ZIP+4 code and 
that meets these address quality standards:
    [Add new 1.3a and redesignate current 1.3a and 1.3b as 1.3b and 
1.3c, respectively, to read as follows:]
    a. The Move Update standard in A030.1.0.
    b. The ZIP Code accuracy standard in A030.2.0.
    c. If an alternative addressing format is used, the standards in 
A020.
* * * * *

E230 Carrier Route Rates

1.0 BASIC INFORMATION
* * * * *

1.3 Address Quality

    All pieces in a Periodicals carrier route rate mailing must bear a 
delivery address that includes the correct ZIP Code or ZIP+4 code and 
that meets these address quality standards:
    [Add new 1.3a and redesignate current 1.3a through 1.3c as 1.3b 
through 1.3d, respectively, to read as follows:]
    a. The Move Update standard in A030.1.0.
    b. If an alternative addressing format is used, the additional 
standards in A020.
    c. If flat-size pieces are prepared with detached address labels, 
the additional standards in A060.
* * * * *

E240 Automation Rates

1.0 BASIC STANDARDS

1.1 All Pieces

    All pieces in a Periodicals automation rate mailing must:
* * * * *
    c. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4

[[Page 51756]]

code, or numeric equivalent to the delivery point barcode (DPBC) and 
that meets these address quality standards:
    [Add new 1.1c(1) and redesignate current 1.1c(1) and 1.1c(2) as 
1.1c(2) and 1.1c(3), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The address matching and coding standards in A800 and A950.
    (3) If an alternative addressing format is used, the additional 
standards in A020.
* * * * *

E600 Standard Mail

* * * * *

E620 Presorted Rates

1.0 BASIC STANDARDS

1.1 All Pieces

    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
Presorted rate mailing must:
* * * * *
    c. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code and that meets these address quality standards:
    [Add new 1.1c(1) and redesignate current 1.1c(1) through 1.1c(3) as 
1.1c(2) through 1.1c(4) to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The ZIP Code accuracy standard in A030.2.0.
    (3) If an alternative addressing format is used, the additional 
standards in A020.
    (4) If merchandise samples are prepared with detached address 
labels, the additional standards in A060.
* * * * *

E630 Enhanced Carrier Route Rates

1.0 BASIC STANDARDS

1.1 All Pieces

    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail mailing must:
* * * * *
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets these address quality standards:
    [Add new 1.1d(1) and redesignate current 1.1d(1) through 1.1d(4) as 
1.1d(2) through 1.1d(5), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The carrier route accuracy standard in A030.3.0.
    (3) If high density and saturation rate letter-size mail is 
prepared, the address matching and coding standards in A800 and A950.
    (4) If an alternative addressing format is used, the additional 
standards in A020.
    (5) If flat-size pieces are prepared with detached address labels, 
the additional standards in A060.
* * * * *

E640 Automation Rates

1.0 REGULAR AND NONPROFIT RATES

1.1 All Pieces

    All pieces in a Regular Standard Mail or Nonprofit Standard Mail 
automation rate mailing must:
* * * * *
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets these address quality standards:
    [Add new 1.1d(1) and redesignate current 1.1d(1) and 1.1d(2) as 
1.1d(2) and 1.1d(3), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The address matching and coding standards in A800 and A950.
    (3) If an alternative addressing format is used, the additional 
standards in A020.
* * * * *
2.0 ENHANCED CARRIER ROUTE RATES

2.1 All Pieces

    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail automation rate mailing (available only for 
letter-size mail) must:
* * * * *
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets these address quality standards:
    [Add new 2.1d(1) and redesignate current 1.1d(1) through 1.1d(3) as 
1.1d(2) through and 1.1d(4), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The carrier route accuracy standard in A030.3.0.
    (3) The address matching and coding standards in A800 and A950.
    (4) If an alternative addressing format is used, the additional 
standards in A020.
* * * * *

E700 Package Services

E710 Basic Standards

* * * * *

E712 Bound Printed Matter

* * * * *
3.0 ADDITIONAL STANDARDS

3.1 Presorted Rates

    In addition to the basic standards in 1.0, all pieces in a Bound 
Printed Matter Presorted rate mailing must:
    a. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code and that meets these address quality standards:
    [Add new 3.1a(1) and redesignate current 3.1a(1) through 3.1a(4) as 
3.1a(2) through and 3.1a(5), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The ZIP Code accuracy standard in A030.2.0.
    (3) If the barcoded discount for flat-size pieces is claimed (see 
2.0), the additional address matching and coding standards in A800 and 
A950.
    (4) If an alternative addressing format is used, the additional 
standards in A020.
    (5) If pieces are prepared with detached address labels, the 
additional standards in A060.
* * * * *

3.2 Carrier Route Rates

    In addition to the basic standards in 1.0, all pieces in a Bound 
Printed Matter carrier route rate mailing must:
    a. Bear a delivery address that includes the correct ZIP Code or 
ZIP+4 code and that meets these address quality standards:
    [Add new 3.2a(1) and redesignate current 3.2a(1) through 3.2a(3) as 
3.2a(2) through and 3.2a(4), respectively, to read as follows:]
    (1) The Move Update standard in A030.1.0.
    (2) The carrier route accuracy standard in A030.3.0.
    (3) If an alternative addressing format is used, the additional 
standards in A020.
    (4) If pieces are prepared with detached address labels, the 
additional standards in A060.
* * * * *

F Forwarding and Related Services

F000 Basic Services

F010 Basic Information

* * * * *

[[Page 51757]]

5.0 CLASS TREATMENT FOR ANCILLARY SERVICES

5.1 First-Class Mail and Priority Mail

* * * * *

 Exhibit 5.1.--Treatment of Undeliverable First-Class Mail and Priority
                                  Mail
                [Revise Exhibit 5.1 to read as follows:]
------------------------------------------------------------------------
           Mailer endorsement              USPS treatment of UAA pieces
------------------------------------------------------------------------
 
                              * * * * * * *
``Return Service Requested'' 1.........  If used without ACS: Piece
                                          returned with new address or
                                          reason for nondelivery
                                          attached (in either case, no
                                          charge).
                                         If used with ACS: Piece
                                          returned (no charge); separate
                                          notice of new address provided
                                          or (only if ACS keyline option
                                          also used) separate reason for
                                          nondelivery provided (in
                                          either case, address
                                          correction fee charged).
 
                             * * * * * * *
------------------------------------------------------------------------
 1. Valid for all pieces, including Address Change Service (ACS)
  participating pieces subject to F030.

5.3 Standard Mail

* * * * *

         Exhibit 5.3a.--Treatment of Undeliverable Standard Mail
                [Revise Exhibit 5.3a to read as follows:]
------------------------------------------------------------------------
           Mailer endorsement              USPS treatment of UAA pieces
------------------------------------------------------------------------
 
                              * * * * * * *
``Return Service Requested'' 1.........  If used without ACS: Piece
                                          returned with new address or
                                          reason for nondelivery
                                          attached (in either case, only
                                          return postage charged at
                                          First-Class Mail single-piece
                                          rate or Priority Mail single-
                                          piece rate, as appropriate for
                                          weight of piece).
                                         If used with ACS: Piece
                                          returned (return postage
                                          charged at First-Class Mail
                                          single-piece rate or Priority
                                          Mail single-piece rate, as
                                          appropriate for weight of
                                          piece); separate notice of new
                                          address provided or (only if
                                          ACS keyline option also used)
                                          separate reason for
                                          nondelivery provided (address
                                          correction fee charged)
 
                             * * * * * * *
------------------------------------------------------------------------
 1. Valid for all pieces, including Address Change Service (ACS)
  participating pieces.

* * * * *

5.4 Package Services

* * * * *

     Exhibit 5.4.--Treatment of Undeliverable Package Services Mail
                [Revise Exhibit 5.4 to read as follows:]
------------------------------------------------------------------------
           Mailer endorsement              USPS treatment of UAA pieces
------------------------------------------------------------------------
 
                              * * * * * * *
``Return Service Requested'' 1.........  If used without ACS: Piece
                                          returned with new address or
                                          reason for nondelivery
                                          attached (in either case, only
                                          return postage charged at
                                          appropriate Package Services
                                          single-piece rate).
                                         If used with ACS: Piece
                                          returned at appropriate
                                          Package Services single-piece
                                          rate; separate notice of new
                                          address provided or (only if
                                          ACS keyline option also used)
                                          separate reason for
                                          nondelivery provided (address
                                          correction fee charged).
 
                             * * * * * * *
------------------------------------------------------------------------
 1. Valid for all pieces, including Address Change Service (ACS)
  participating pieces.


[[Page 51758]]

* * * * *
    An appropriate amendment to 39 CFR Part 111 will be published if 
the proposal is adopted.
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-22048 Filed 8-27-03; 8:45 am]
BILLING CODE 7710-12-P