[Federal Register Volume 68, Number 181 (Thursday, September 18, 2003)]
[Rules and Regulations]
[Pages 54664-54672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23917]


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POSTAL SERVICE

39 CFR Part 111


Parcel Return Services Experiment

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the Parcel Return 
Services experiment pursuant to the Decision of the Governors of the 
Postal Service approving the Recommended Decision of the Postal Rate 
Commission in its Docket No. MC2003-2. The recommended decision is 
based on the Stipulation and Agreement that represented a negotiated 
settlement of all issues in that docket.

EFFECTIVE DATE: This final rule is effective at 12:01 a.m. on October 
19, 2003.

FOR FURTHER INFORMATION CONTACT: Obataiye B. Akinwole, 703-292-3643.

SUPPLEMENTARY INFORMATION: 

PRS Background

    The Postal Service is conducting this Parcel Return Services (PRS) 
experiment to respond to the rapidly evolving market of Internet and 
catalog sales. Merchandise sales inevitably lead to returns, and many 
consumers, as well as Internet and catalog retailers, rely on the 
Postal Service for return of merchandise. By taking advantage of new 
ways of handling returned parcels, the new Parcel Return Services can 
provide convenience to consumers and competitive prices for retailers. 
Commercial shippers generally enter their parcels in bulk at postal 
facilities near their destinations and receive discounts for doing so. 
With the PRS experiment, they will be able to pick up returns in bulk 
at those same facilities and receive discounts for the handling and 
transportation costs the Postal Service otherwise would have incurred 
for single-piece handling and transportation of those parcels back to 
the original shipper. Thus, the experiment provides return parcels with 
the benefits of worksharing and the advantages of Parcel Select service 
realized by mailers for outgoing parcels.

PRS Rate Categories

    PRS consists of three rate categories for returned Package Services 
parcels retrieved in bulk by a permit holder.
    [sbull] The Parcel Select Return Delivery Unit (RDU) rate category 
applies to Parcel Post subclass parcels retrieved from a designated 
delivery unit.\1\ The RDU rates are flat rates that do not vary by 
weight. There is one rate category for all regular-sized parcels and a 
separate flat rate for all oversized parcels.
---------------------------------------------------------------------------

    \1\ Designated delivery units are those that currently offer 
extended hours for entry of Parcel Select-DDU parcels, and represent 
approximately 6,500 of the largest offices. This limit will allow 
the Postal Service to better manage and evaluate the experiment. 
Delivery unit information can be obtained from the Drop Ship 
Product, which provides information to customers who deliver their 
Package Services mailings to BMCs and DDUs. The Drop Ship Address 
portion of the product contains USPS facility address and telephone 
information. The Drop Ship Product is available by subscription from 
the National Customer Support Center (NCSC), Memphis, TN.
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    [sbull] The Parcel Select Return Bulk Mail Center (RBMC) rate 
category applies to Parcel Post subclass parcels retrieved in bulk from 
any of the 21 Bulk Mail Centers (BMCs) listed in DMM L601, or other 
equivalent facility. Permit holders are required to develop reverse 
manifests of each piece they retrieve.
    [sbull] The Bound Printed Matter (BPM) Return Bulk Mail Center 
(RBMC) rate category applies to BPM subclass parcels retrieved in bulk 
from any of the 21 BMCs. Permit holders are required to develop reverse 
manifests of each piece they retrieve. Flat-shaped single-piece rate 
BPM eligible for a rate reduction in the form of a flat differential 
does not qualify for the RBMC rate. There is no separate BPM rate for 
parcels retrieved from RDUs. BPM parcels can qualify as PSRS parcels 
retrieved from a DDU.

PRS Rates

    As part of this experiment, participants will be charged the 
applicable rate in new DMM G993.3.1 through 3.4.

[[Page 54665]]

    Parcels must be retrieved on a regular schedule. From BMCs, a 
minimum of every 48 hours excluding Sundays and Postal Service 
holidays, and from designated delivery units, a minimum of once every 
seven days. Permit holders or their agents would be required to set up 
a recurring or standing appointment to retrieve PRS parcels. If the 
permit holder (or agent) already has existing appointments to deliver 
Parcel Select parcels to a BMC or DDU, the same appointment can be used 
for retrieving PRS parcels.
    Participation in the first year of the experiment will be limited 
to 20 approved participants (permit holders). An additional 10 
participants may be added during the second year. Participants will pay 
one annual PRS permit fee and one annual PRS advance deposit accounting 
fee of $150.00 and $475.00, respectively, at the post office where the 
PRS permit is held. Only one permit and accounting fee is required for 
each participant (permit holder). Payment of these fees allows the 
permit holder to retrieve both Parcel Select and BPM PRS parcels for 
their clients, as well as their own parcels, at all approved locations. 
Permit holders must use the Centralized Account Processing System 
(CAPS) electronic postage payment system to fund postage payments for 
all returns through all locations. Information on CAPS can be found at 
http://caps.usps.gov.
    The PRS permit may be canceled by the Postal Service for failure to 
maintain sufficient funds in a trust account to cover postage and fees 
on returned parcels, for distributing labels that do not conform to 
Postal Service specifications, or for several other reasons set out in 
this rule.
    Because of the purpose and limited scope of this experiment, the 
Postal Service finds no need to solicit comments on the standards for 
Parcel Return Services or to delay implementation of this experiment.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
For the reasons discussed above, the Postal Service hereby adopts the 
following amendments to the Domestic Mail Manual, which is incorporated 
by reference in the Code of Federal Regulations (see 39 CFR part 111).

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, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
0
2. Revise the following sections of the DMM as set forth below:

G General Information

* * * * *

G900 Experimental Classification and Rate Filings

* * * * *

G990 Experimental Classifications and Rates

* * * * *
    [Add new G993 to read as follows:]

G993 Parcel Return Services

    Summary G993 describes the eligibility, standards, physical 
characteristics, markings, and rates that apply to the experimental 
Parcel Return Services classification.
1.0 BASIC INFORMATION

1.1 Description

    The standards in G993 apply to parcels that are retrieved in bulk 
by authorized permit holders or their agents who are approved 
participants in the Parcel Return Services (PRS) experiment. The permit 
holder guarantees payment of postage and retrieval of all PRS parcels 
mailed with a PRS label. The permit holder has the option of retrieving 
returned parcels at a designated delivery unit (DDU) (the post office 
where PRS parcels are mailed by a customer)--or at the bulk mail center 
(BMC) that serves the post office where returned parcels are deposited 
by a customer. Payment for parcels returned under PRS is deducted from 
a separate advance deposit (postage due) account that is funded through 
the Centralized Account Processing System (CAPS).

1.2 Applicability

    Parcels may use PRS when all of the following conditions apply:
    a. Parcels contain merchandise being returned to the merchant.
    b. Parcels bear a PRS label that meets the standards in 4.0.
    c. The parcel shows the permit number, and the permit holder has 
paid the annual PRS permit fee and the annual PRS accounting fee.

1.3 Services

    Package Services pieces using Parcel Return Services are not 
eligible for ancillary or special services.

1.4 Customer Mailing Options

    Returned parcels must be mailed within the service area of the post 
office shown in the return address on the label. They may be deposited 
at:
    a. The main post office or any associated office, station, or 
branch.
    b. In any collection box (except an Express Mail box).
    c. With any rural carrier.
    d. On business routes during regular mail delivery if prior 
arrangements are made with the carrier.
    e. As part of a collection run for other mail (special arrangements 
may be required).
    f. At any place designated by the postmaster for the receipt of 
mail.

1.5 Participation

    Companies who wish to participate in this experiment must send a 
request, on company letterhead, to the manager, Mailing Standards (see 
G043 for address). Requests also may be sent via e-mail to 
[email protected]; or by fax to 703-292-4058. The request must 
contain the following information:
    a. Company name and address.
    b. Individual contact name, telephone number, fax number, and e-
mail address.
    c. The rate category or categories to be used; proposed retrieval 
locations (delivery units and bulk mail centers); and individual 
contact information for the company contact or agent at each location.
    d. A list of clients, if the applicant is not the merchant 
(required for mailer identification number assignment).
    e. Projected volume per quarter for each RDU and/or RBMC.
    f. Label and instruction examples that comply with 4.0.
    g. Date(s) label distribution will begin for each client.
    h. Description of the electronic returns manifesting system to be 
used to document returns, by location and rate eligibility.
    i. Current Parcel Select and BPM parcel profile (volumes and 
weights).

1.6 Evaluation

    The electronic returns manifesting system will be subject to 
approval by the manager, Business Mailer Support (BMS). BMS can provide 
applicants information for developing and receiving approval for a 
parcel returns system, electronic file transfer requirements, and 
certification process. Once approved, participants must comply with the 
terms of the PRS Service Agreement and pay the annual fees in 2.2 and 
2.3. The manager, Mailing Standards may request additional data and a 
visit to the applicant's plant. In selecting participants, the manager, 
Mailing Standards uses the following additional criteria:

[[Page 54666]]

    a. The applicant must be prepared to begin operation at a mutually 
agreed upon time soon after selection.
    b. The applicant must demonstrate the ability to retrieve parcels 
on a regular schedule mutually agreed upon from the designated RDU, 
RBMC, or both.

1.7 Authorization

    Participants during the first year of this experiment will be 
limited to the first 20; depending on the results in year one, 10 
additional participants may be approved during the second year. The 
manager, Mailing Standards will review each request and will proceed as 
follows:
    a. If the applicant meets the conditions required for the PRS 
experiment and the application is otherwise consistent with the 
purposes and goals of the experiment, the manager, Mailing Standards 
will approve the letter of request. For the purposes of the experiment, 
the Postal Service may require additional documentation and periodic 
review and inspection of each participant's PRS processing and 
accounting operations.
    b. If the application does not appear to meet the conditions 
required for the PRS experiment, the manager, Mailing Standards will 
deny the request and send a written notice to the applicant, with the 
reasons for denial.

1.8 Procedure

    Upon approval and payment of fees, participants must provide a copy 
of the approval to each contact at each pickup location. The manager, 
Mailing Standards will provide a copy to each district manager, 
Business Mail Entry that has a pickup location. Local post offices can 
determine payment of fees through CAPS.

1.9 Pickup Schedule

    Parcels must be retrieved on a regular schedule: from BMCs, a 
minimum of every 48 hours excluding Sundays and Postal Service 
holidays; and from DDUs, a minimum of once every seven days. Permit 
holders or their agents will be required to set up a recurring or 
standing appointment to retrieve PRS parcels. If the permit holder (or 
agent) already has existing appointments to deliver Parcel Select 
parcels to a BMC or DDU that meet these standards, the same appointment 
can be used for retrieving PRS parcels.
2.0 POSTAGE AND FEES

2.1 Postage

    There are three PRS rate categories:
    a. Parcel Select RDU. Parcels returned as Parcel Post to, and 
retrieved in bulk from, a designated delivery unit.
    b. Parcel Select RBMC. Parcels returned as Parcel Post to, and 
retrieved in bulk from, a designated BMC.
    c. Bound Printed Matter RBMC. Parcels returned as Bound Printed 
Matter to, and retrieved in bulk from, a designated BMC.

2.2 Permit Fee

    A $150.00 permit fee must be paid annually at the post office where 
the PRS permit is held. The permit must remain valid during the course 
of the experiment.

2.3 Advance Deposit Account and Annual Accounting Fee

    The participant must pay postage through an advance deposit account 
and must pay an annual accounting fee of $475.00. The account must 
remain valid during the course of the experiment.
3.0 RATES

3.1 Parcel Select Return Services--Return Delivery Unit

    Regardless of weight, any parcel that measures more than 108 inches 
(but not more than 130 inches) in combined length and girth must pay 
the oversized rate.

------------------------------------------------------------------------
                    Weight not over (pounds)                       Rate
------------------------------------------------------------------------
 1..............................................................   $2.00
 2..............................................................    2.00
 3..............................................................    2.00
 4..............................................................    2.00
 5..............................................................    2.00
 6..............................................................    2.00
 7..............................................................    2.00
 8..............................................................    2.00
 9..............................................................    2.00
10..............................................................    2.00
11..............................................................    2.00
12..............................................................    2.00
13..............................................................    2.00
14..............................................................    2.00
15..............................................................    2.00
16..............................................................    2.00
17..............................................................    2.00
18..............................................................    2.00
19..............................................................    2.00
20..............................................................    2.00
21..............................................................    2.00
22..............................................................    2.00
23..............................................................    2.00
24..............................................................    2.00
25..............................................................    2.00
26..............................................................    2.00
27..............................................................    2.00
28..............................................................    2.00
29..............................................................    2.00
30..............................................................    2.00
31..............................................................    2.00
32..............................................................    2.00
33..............................................................    2.00
34..............................................................    2.00
35..............................................................    2.00
36..............................................................    2.00
37..............................................................    2.00
38..............................................................    2.00
39..............................................................    2.00
40..............................................................    2.00
41..............................................................    2.00
42..............................................................    2.00
43..............................................................    2.00
44..............................................................    2.00
45..............................................................    2.00
46..............................................................    2.00
47..............................................................    2.00
48..............................................................    2.00
49..............................................................    2.00
50..............................................................    2.00
51..............................................................    2.00
52..............................................................    2.00
53..............................................................    2.00
54..............................................................    2.00
55..............................................................    2.00
56..............................................................    2.00
57..............................................................    2.00
58..............................................................    2.00
59..............................................................    2.00
60..............................................................    2.00
61..............................................................    2.00
62..............................................................    2.00
63..............................................................    2.00
64..............................................................    2.00
65..............................................................    2.00
66..............................................................    2.00
67..............................................................    2.00
68..............................................................    2.00
69..............................................................    2.00
70..............................................................    2.00
    Oversize....................................................    7.51
------------------------------------------------------------------------

3.2 Parcel Select Return Services--Return BMC Machinable

    Parcels that weigh less than 15 pounds but measure more than 84 
inches in combined length and girth are charged the applicable rate for 
a 15-pound parcel.

------------------------------------------------------------------------
                                      Zones 1
      Weight not over (pounds)          & 2     Zone 3   Zone 4   Zone 5
------------------------------------------------------------------------
 1..................................    $2.10    $2.13    $2.19    $2.28
 2..................................     2.67     2.70     2.77     2.88
 3..................................     3.22     3.25     3.34     3.46
 4..................................     3.42     3.76     3.86     4.00
 5..................................     3.59     4.16     4.29     4.49
 6..................................     3.75     4.52     4.65     4.94

[[Page 54667]]

 
 7..................................     3.90     4.83     4.98     5.35
 8..................................     4.47     5.12     5.28     5.74
 9..................................     4.60     5.36     5.59     6.09
10..................................     4.77     5.67     5.88     6.42
11..................................     4.90     5.88     6.14     6.72
12..................................     5.05     6.08     6.40     7.01
13..................................     5.18     6.24     6.64     7.27
14..................................     5.30     6.36     6.89     7.52
15..................................     5.41     6.53     7.10     7.76
16..................................     5.52     6.70     7.30     7.98
17..................................     5.65     6.86     7.52     8.19
18..................................     5.74     7.01     7.71     8.38
19..................................     5.86     7.16     7.89     8.57
20..................................     5.96     7.30     8.05     8.74
21..................................     6.05     7.44     8.20     8.91
22..................................     6.16     7.56     8.34     9.06
23..................................     6.24     7.72     8.48     9.21
24..................................     6.33     7.84     8.60     9.36
25..................................     6.41     7.96     8.72     9.49
26..................................     6.51     8.07     8.85     9.62
27..................................     6.59     8.20     8.96     9.74
28..................................     6.66     8.32     9.05     9.86
29..................................     6.75     8.44     9.16     9.97
30..................................     6.83     8.54     9.26    10.07
31..................................     6.91     8.62     9.35    10.18
32..................................     7.00     8.74     9.45    10.27
33..................................     7.06     8.84     9.53    10.37
34..................................     7.14     8.92     9.61    10.45
35..................................     7.20     9.03     9.69    10.54
------------------------------------------------------------------------

3.3 Parcel Select Return Services--Return BMC Nonmachinable

    Parcels that weigh less than 15 pounds but measure more than 84 
inches in combined length and girth are charged the applicable rate for 
a 15-pound parcel. Regardless of weight, any parcel that measures more 
than 108 inches (but not more than 130 inches) in combined length and 
girth must pay the oversized rate.

------------------------------------------------------------------------
                                      Zones 1
      Weight not over (pounds)          & 2     Zone 3   Zone 4   Zone 5
------------------------------------------------------------------------
1...................................    $3.45    $3.48    $3.54    $3.63
2...................................     4.02     4.05     4.12     4.23
3...................................     4.57     4.60     4.69     4.81
4...................................     4.77     5.11     5.21     5.35
5...................................     4.94     5.51     5.64     5.84
6...................................     5.10     5.87     6.00     6.29
7...................................     5.25     6.18     6.33     6.70
8...................................     5.82     6.47     6.63     7.09
9...................................     5.95     6.71     6.94     7.44
10..................................     6.12     7.02     7.23     7.77
11..................................     6.25     7.23     7.49     8.07
12..................................     6.40     7.43     7.75     8.36
13..................................     6.53     7.59     7.99     8.62
14..................................     6.65     7.71     8.24     8.87
15..................................     6.76     7.88     8.45     9.11
16..................................     6.87     8.05     8.65     9.33
17..................................     7.00     8.21     8.87     9.54
18..................................     7.09     8.36     9.06     9.73
19..................................     7.21     8.51     9.24     9.92
20..................................     7.31     8.65     9.40    10.09
21..................................     7.40     8.79     9.55    10.26
22..................................     7.51     8.91     9.69    10.41
23..................................     7.59     9.07     9.83    10.56
24..................................     7.68     9.19     9.95    10.71
25..................................     7.76     9.31    10.07    10.84
26..................................     7.86     9.42    10.20    10.97
27..................................     7.94     9.55    10.31    11.09
28..................................     8.01     9.67    10.40    11.21
29..................................     8.10     9.79    10.51    11.32
30..................................     8.18     9.89    10.61    11.42
31..................................     8.26     9.97    10.70    11.53
32..................................     8.35    10.09    10.80    11.62

[[Page 54668]]

 
33..................................     8.41    10.19    10.88    11.72
34..................................     8.49    10.27    10.96    11.80
35..................................     8.55    10.38    11.04    11.89
36..................................     8.65    10.49    11.14    12.00
37..................................     8.72    10.56    11.20    12.06
38..................................     8.76    10.63    11.25    12.11
39..................................     8.82    10.71    11.29    12.16
40..................................     8.85    10.76    11.33    12.21
41..................................     8.92    10.85    11.37    12.26
42..................................     8.95    10.90    11.42    12.30
43..................................     8.99    10.96    11.46    12.33
44..................................     9.04    11.02    11.50    12.36
45..................................     9.07    11.07    11.64    12.39
46..................................     9.14    11.14    11.67    12.42
47..................................     9.19    11.18    11.70    12.45
48..................................     9.22    11.25    11.72    12.48
49..................................     9.27    11.30    11.75    12.51
50..................................     9.28    11.35    11.77    12.54
51..................................     9.35    11.39    11.80    12.57
52..................................     9.39    11.47    11.82    12.60
53..................................     9.40    11.50    11.83    12.63
54..................................     9.44    11.52    11.86    12.66
55..................................     9.48    11.54    11.89    12.69
56..................................     9.52    11.56    11.91    12.72
57..................................     9.57    11.56    11.91    12.75
58..................................     9.60    11.58    11.93    12.78
59..................................     9.63    11.59    11.95    12.81
60..................................     9.68    11.60    11.95    12.84
61..................................     9.72    11.61    11.97    12.87
62..................................     9.75    11.62    12.01    12.90
63..................................     9.78    11.62    12.06    12.93
64..................................     9.82    11.62    12.09    12.96
65..................................     9.85    11.64    12.13    12.99
66..................................     9.90    11.64    12.18    13.02
67..................................     9.94    11.65    12.23    13.05
68..................................     9.94    11.65    12.25    13.08
69..................................     9.99    11.65    12.30    13.11
70..................................    10.02    11.65    12.34    13.14
    Oversized.......................    25.99    26.31    27.00    28.05
------------------------------------------------------------------------

3.4 Bound Printed Matter Return Services--Return BMC

------------------------------------------------------------------------
                                      Zones 1
      Weight not over (pounds)          & 2     Zone 3   Zone 4   Zone 5
------------------------------------------------------------------------
1.0.................................    $1.63    $1.68    $1.72    $1.80
1.5.................................     1.63     1.68     1.72     1.80
2.0.................................     1.70     1.76     1.82     1.92
2.5.................................     1.77     1.85     1.92     2.05
3.0.................................     1.84     1.93     2.02     2.17
3.5.................................     1.91     2.02     2.12     2.30
4.0.................................     1.98     2.10     2.22     2.42
4.5.................................     2.05     2.19     2.32     2.55
5.0.................................     2.12     2.27     2.42     2.67
6.0.................................     2.26     2.44     2.62     2.92
7.0.................................     2.40     2.61     2.82     3.17
8.0.................................     2.54     2.78     3.02     3.42
9.0.................................     2.68     2.95     3.22     3.67
10.0................................     2.82     3.12     3.42     3.92
11.0................................     2.96     3.29     3.62     4.17
12.0................................     3.10     3.46     3.82     4.42
13.0................................     3.24     3.63     4.02     4.67
14.0................................     3.38     3.80     4.22     4.92
15.0................................     3.52     3.97     4.42     5.17
------------------------------------------------------------------------


[[Page 54669]]

4.0 LABEL FORMAT

4.1 Label Preparation

    PRS labels must be certified for use by the Postal Service prior to 
distribution. In addition, permit holders must obtain Postal Service 
certification for barcode symbologies. Any photographic, mechanical, or 
electronic process or any combination of such processes may be used to 
produce PRS labels. The background of the label may be any light color 
that allows the address, barcodes, and other required information to be 
easily distinguished. If labels are electronically transmitted to 
customers for their local printing, the permit holder must advise 
customers of these printing requirements as part of the instructions in 
4.3.

4.2 Labeling Methods

    If all applicable content and format standards are approved 
(including instructions to the user), a PRS label may be distributed by 
any of the following methods:
    a. As an enclosure with merchandise when initially shipped, as part 
of the original invoice accompanying the merchandise, or as a separate 
label preprinted by the permit holder. If the reverse side of the label 
bears an adhesive, it must be strong enough to bond the label securely 
to the mailpiece.
    b. As an electronic file created by the permit holder for local 
output and printing by the customer.

4.3 Instructions

    Regardless of label distribution method, written instructions 
always must be provided to the user of the PRS label that, at a 
minimum, direct the user to do the following:
    a. ``If your name and address are not already printed in the return 
address area, please print them neatly in that area or attach a return 
address label there.''
    b. ``Attach the label provided by the merchant squarely onto the 
largest side of the mailpiece, unless you need to use another side to 
make the parcel more stable. Place the label at least 1 inch from the 
edge of the parcel, so that it does not fold over to another side. If 
you are using tape to attach the new label, do not put tape over any 
barcodes on the label, even if the tape is clear, because the 
reflection interferes with barcode readers.''
    c. ``If you are reusing the original container to return the 
merchandise, use the label to cover your original delivery address and 
the barcodes and any other postal information on it. If it is not 
possible to cover all that information with the label, either remove 
old labels containing these items, mark them out completely with a 
permanent marker, or cover them completely with blank labels or paper 
that cannot be seen through. If that cannot be done, or if the original 
container is no longer sound, please use a new box to return the 
merchandise and attach the return label to that new box.''
    d. ``Once repackaged and labeled, you can mail the parcel at a post 
office, deposit it in a collection box, or give it to the carrier at 
the original delivery address. If the parcel is addressed to Return 
Delivery Unit, mail it at a local post office near the original 
delivery address. If the parcel is addressed to Return Bulk Mail 
Center, you can mail it at any post office or collection box in the 
town, city, or metropolitan area of the original delivery address.''

4.4 Label Format Elements

    There is no minimum size for PRS labels; however, the label must be 
of a sufficient size to accommodate all label elements and standards in 
this section. All PRS label elements must be legible. Except where a 
specific type size is required, elements must be of a type size large 
enough to be legible from a normal reading distance and to separate 
them from other elements on the label. Examples of PRS label formats 
are shown in Exhibits 4.4a, 4.4b, 4.4c, and 4.4d. The following 
elements are required:
    a. Postage Guarantee. The imprint ``No Postage Necessary if Mailed 
in the United States'' must appear in the upper right corner.
    b. Horizontal Bars. A minimum of three horizontal bars must appear 
directly below the imprint in the upper right corner. The bars must be 
uniform in length, at least 1 inch long, \1/16\ inch thick, and evenly 
spaced.
    c. Parcel Return Service Legend. The legend must be placed directly 
above the address and include:
    (1) Line 1: In capital letters at least \3/16\ inch high, PARCEL 
SELECT RETURN SERVICE or BOUND PRINTED MATTER RETURN SERVICE, as 
appropriate. Bound Printed Matter may be abbreviated BPM.
    (2) Line 2: In all capital letters, Permit holder's name, left 
justified, followed by PERMIT NO., followed by the permit number.
    d. Customer's return address. The return address of the customer 
using the label to mail the parcel back to the permit holder must 
appear in the upper left corner. If it is not preprinted by the permit 
holder or merchant, space must be provided for the customer to enter 
the return address.
    e. Address. The address must be the physical location of the return 
facility, as shown in the Drop Ship Product. The address must consist 
of at least three lines. If needed, the ZIP Code may appear left-
justified on the line directly below the city and state line.
    (1) Line 1: In all capital letters RETURN DELIVERY UNIT, or RETURN 
BULK MAIL CENTER, as appropriate. Center may be abbreviated CTR.
    (2) Line 2: Street address, including number.
    (3) Line 3: City, state, and ZIP Code.
    f. Parcel Return Service Barcode. A PRS barcode must be printed 
directly on the label. The barcode may appear in any location on the 
label, except the upper left, upper right, and lower right corners. The 
barcode must meet the standards for barcodes in Publication 91, with 
the following exceptions:
    (1) The barcode must be produced using the UCC/EAN Code 128 barcode 
symbology.
    (2) The service type code (STC) contained in the barcode must 
identify the rate associated with the label destination. For labels 
addressed to a return delivery unit, the STC must be 58. For labels 
addressed to a return bulk mail center, the STC must be 57.
    (3) Human-readable text above the barcode must read USPS PARCEL 
RETURN SERVICE. If the barcode is a single concatenated barcode with 
the postal routing code described in 4.4g, the text above the barcode 
must read BMC ZIP--USPS PARCEL RETURN SERVICE.
    (4) The clear zone between the barcode, human-readable text, and 
the horizontal bar above and below the barcode must be at least \1/16\ 
inch.
    g. Postal Routing Barcode. If a single concatenated barcode is not 
used for the PRS Barcode, a postal routing barcode also must be printed 
directly on the label. The barcode may appear in any location on the 
label, except the upper left, upper right, and lower right corners. 
Postal routing barcodes must meet the standards in C850, with the 
following exceptions:
    (1) The barcode symbology must be produced using the UCC/EAN Code 
128 barcode symbology.
    (2) The human-readable text below the barcode must read BMC ZIP--
followed by the 5-digit ZIP Code for the BMC facility. The ZIP Code 
must be the correct ZIP Code for the RBMC as provided by the Postal 
Service. For RDU-addressed labels, the RBMC that services the location 
of the RDU must be used as the BMC 5-digit ZIP Code in the postal 
routing barcode.
    h. Mailer Identification (ID). An individual mailer ID must appear 
in the

[[Page 54670]]

lower right corner. The mailer ID is assigned by the permit holder to 
each individual client (merchant) of the permit holder. The mailer ID 
must consist of a single, uppercase alpha character followed by a two-
digit number, with no spaces or dashes (e.g., A01) . The mailer ID must 
be at least \3/16\ inch high and surrounded by a border (box) , with a 
clearance of at least\3/16\ inch between the mailer ID characters and 
the border. The mailer ID may be reverse-printed.
    i. Additional Information. Additional information (e.g., company 
logo, return authorization number, inventory barcode) is permitted on 
the PRS label if it does not interfere with any required format 
elements. Inventory barcodes must not resemble barcodes described in 
C850.

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    We will publish an appropriate amendment to 39 CFR to reflect these 
changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-23917 Filed 9-17-03; 8:45 am]
BILLING CODE 7710-12-C