[Federal Register Volume 69, Number 216 (Tuesday, November 9, 2004)]
[Proposed Rules]
[Pages 64877-64880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-24887]


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POSTAL SERVICE

39 CFR Part 111


Address Sequencing Services

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The United States Postal Service provides mailers with both 
manual and electronic address sequencing services for their address 
lists, including electronic address sequencing (EAS) service and 
computerized delivery sequencing (CDS) service. Mailers who prepare 
their mail using these services may qualify for postage discounts. In 
addition, these services help mailers use the best possible addresses 
on their mail. This improves mail deliverability and reduces the costs 
of the Postal Service.
    Mailers who qualify for, and obtain, the highest level of address 
sequencing service (Level 3 Service) from the Postal Service for an 
address list, may then apply to obtain a CDS subscription for each 
separate address group in each 5-digit ZIP Code within that address 
list. The Postal Service proposes to streamline the process by which it 
provides seed addresses to CDS subscribers and accepts address lists 
from mailers for Level 3 Service. The Postal Service proposes to 
provide mailers with more detailed information so that they may 
properly submit address lists to the Postal Service in order to obtain 
address sequencing services. CDS subscribers will continue to obtain 
the benefit of using seed addresses to assist them in protecting their 
address lists. The Postal Service also proposes to clarify that the 
requirements for obtaining Level 3 Service and CDS subscriptions for 
Post Office box address groups is the same as for other address groups.

DATES: Written comments must be received on or before December 9, 2004.

ADDRESSES: Written comments should be mailed to the Computerized 
Delivery Sequence (CDS) Department, National Customer Support Center, 
United States Postal Service, 6060 Primacy Pkwy Ste 201, Memphis TN 
38188-0001. Copies of all written comments will be available at this 
address for public inspection and photocopying between 9 a.m. and 4 
p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Becky Dunn, National Customer Support 
Center, United States Postal Service, (800)-238-3150.

SUPPLEMENTARY INFORMATION: The Postal Service offers a range of manual 
and electronic address sequencing services not only to mailers who 
develop or own address lists, but also to mailers who use address lists 
they obtain from third parties. Mailers, as well as parties acting on 
behalf of mailers, may obtain address sequencing services by submitting 
address lists to the Postal Service either in the form of address cards 
or electronic address files (both forms are referred to as ``address 
lists''). The Postal Service only provides address sequencing and 
correction services. It does not provide address lists of postal 
customers to the public. See 39 U.S.C. 412.The Postal Service offers 
mailers three levels of address sequencing services for address lists:
    Level 1 Service: The Postal Service arranges addresses in delivery 
sequence and removes undeliverable addresses from address lists.
    Level 2 Service: In addition to Level 1 Service, the Postal Service 
inserts blank cards for missing addresses in an address list submitted 
as address cards, or delivery sequence numbers for addresses missing 
from the mailer's electronic address list file.
    Level 3 Service: In addition to Levels 1 and 2 Service, the Postal 
Service inserts addresses for missing or new addresses either by 
address cards or into electronic address files, depending on whether 
the mailer has submitted its address list as address cards or as an 
electronic address list file. In order to obtain Level 3 Service, a 
mailer must satisfy the Postal Service requirements summarized below.

[[Page 64878]]

    The Postal Service will provide Level 3 Service only if the address 
list contains at least ninety percent (90%), but not more than one 
hundred ten percent (110%), of the delivery addresses in each separate 
address group in a 5-digit ZIP Code (such as city, rural, Post Office 
box) after the Postal Service removes undeliverable addresses.
    The Postal Service, as a new requirement, proposes that mailers 
must submit a completed Processing Acknowledgement Form (PAF Form) to 
the Postal Service in order to obtain Level 3 Service for an address 
list. A sample of this form follows this notice. Mailers must provide 
required information on the PAF Form such as contact information, 
whether they have a current CDS subscription, and if so, their 
computerized delivery sequence (CDS) customer number. In addition, 
mailers must submit information concerning the origin or acquisition of 
the address list submitted to the Postal Service. A mailer must attach 
a description to the PAF Form as to how it developed the address list 
if it states that it has not acquired the address list from a third 
party. If instead, a mailer states on the PAF Form that it has acquired 
the address list from a third party, the Postal Service proposes to 
require that the mailer submit written documentation from the owner of 
that address list (including any CDS subscriber who may have inserted 
seed addresses in to the address list), that authorizes the mailer to 
submit the address list to the Postal Service in order to obtain Level 
3 Service or a CDS subscription. The CDS subscriber may set a date 
after which the mailer is no longer authorized to submit the address 
list to the Postal Service for Level 3 Service or a CDS subscription. 
The Postal Service will not provide Level 3 Service for an address list 
if an authorization from a CDS subscriber has expired.
    Only a mailer who has qualified for and obtained Level 3 Service 
for ZIP Code groupings in an address list may apply to the Postal 
Service to obtain a CDS subscription for those ZIP Code groupings, 
thereby becoming a CDS subscriber. CDS subscriptions enable mailers to 
maintain current delivery sequencing information for their qualified 
address lists. The Postal Service periodically provides CDS subscribers 
with updated CDS file information that contains a list of addresses in 
a ZIP Code grouping arranged in delivery sequence as served by a 
specific Postal Service carrier. In addition, the Postal Service 
assists CDS subscribers in protecting their address lists through the 
Postal Service's seed address program.
    The Postal Service proposes to streamline the process by which it 
provides qualified CDS subscribers with seed addresses for a ZIP Code 
and address group within an address list. A seed address is a 
fictitious address that CDS subscribers may elect to obtain from the 
Postal Service. Each seed address that the Postal Service assigns to a 
CDS subscriber is unique to that CDS subscriber. CDS subscribers may 
insert the assigned seed address (or addresses) into an address list as 
a way to identify that address list as belonging to the CDS subscriber. 
This may enable the detection of unauthorized use of the CDS 
subscriber's address list by other mailers.
    The Postal Service understands that some CDS subscribers permit 
other mailers to use their address lists, and permit third-party 
intermediaries, such as list brokers, to provide the CDS subscribers' 
address lists to mailers. The Postal Service has experienced a number 
of problems with address lists that mailers acquire from third parties. 
Mailers appear to reasonably believe that they are authorized to submit 
the address lists for Level 3 Service and CDS subscriptions either 
based on representations made by the third-party intermediaries and 
list brokers, or by the failure of the third party to clearly explain 
the limited use of the address list. There are concerns in the mailing 
industry that some mailers who seek Level 3 Service and CDS 
subscriptions are not qualified to do so.
    To resolve these problems, the Postal Service proposes to require 
that in the event that a CDS subscriber on its own, or through another 
party, authorizes a mailer to submit the subscriber's address list to 
the Postal Service for Level 3 Service, the CDS subscriber must provide 
the mailer with written authorization to do so. The Postal Service 
proposes that CDS subscribers who wish to obtain seed addresses must 
agree to be responsible for ensuring that any such third-party 
intermediaries or list brokers ensure that mailers who are seeking 
Level 3 Service receive the necessary written authorization in addition 
to the address lists. The mailer then must furnish this written 
authorization together with the completed PAF Form to the Postal 
Service, as described above, if the mailer seeks Level 3 Service for an 
address list it obtained from another party. The Postal Service will 
not begin Level 3 Service processing until it receives complete 
documentation. By implementing the foregoing procedures, the Postal 
Service believes that mailers who obtain address lists from third 
parties should be able to obtain Level 3 Service only for those address 
lists for which they have received written authorization.
    In the event a mailer submits an address list it obtained from 
another party to the Postal Service for Level 3 Service and the Postal 
Service locates a seed address that has not been assigned to the 
mailer, the Postal Service will continue its present practice of 
notifying the CDS subscriber to whom the seed address has been 
assigned. The Postal Service will provide the CDS subscriber with the 
identity of the mailer. The Postal Service proposes to supplement this 
process by also notifying the mailer of the identity of the CDS 
subscriber. The Postal Service will not release to the mailer that part 
of the address list for the ZIP Code containing a seed address until it 
receives authorization from the CDS subscriber.
    The CDS subscriber and the mailer, as well as any intermediaries or 
list brokers (if any), will then be responsible for independently 
resolving issues concerning the proper use of the address list without 
Postal Service involvement. Due to the fact that the parties themselves 
now will handle address list questions in a manner they see fit, the 
Postal Service proposes to discontinue its current practice of 
researching seed address problems. The Postal Service, however, will 
continue its existing practice of processing address groups without 
seed addresses in the address list submitted by the mailer.
    The Postal Service also proposes to clarify in its address 
sequencing program materials that its requirements for mailers to 
obtain Level 3 Service and CDS subscriptions for Post Office box 
address groups in each 5-digit ZIP Code within an address list are the 
same as for other address groups, including the following: (1) Mailers 
must submit their address lists in the form of either address cards or 
electronic files to the Postal Service in order to obtain Level 3 
Service or CDS subscriptions for Post Office box address groups, and 
(2) the Postal Service charges mailers the same fees for obtaining 
address sequencing services for Post Office box address groups as it 
does for other address groups.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. of 553(b)-(c)) regarding 
proposed rulemaking by 39 U.S.C. 410(a), the Postal Service invites 
public comment on the following proposed revisions to the Domestic Mail 
Manual (DMM) A920, incorporated by reference in the

[[Page 64879]]

Code of Federal Regulations (CFR). See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

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

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Amend the following sections of the Domestic Mail Manual as set 
forth below:

Domestic Mail Manual (DMM)

* * * * *

A Addressing

* * * * *

A900 Customer Support

* * * * *

A920 Address Sequencing Services

1.0 SERVICE LEVELS
* * * * *
[Revise item d to read as follows:]
    d. Mailers who have obtained address sequencing services described 
in A920.1.c and 920.4.1 (Level 3 Service) for address lists, and who 
have a current computerized delivery sequence (CDS) subscription, may 
apply to USPS to obtain seed addresses to include in their address 
lists. Qualified CDS subscribers may elect to include a seed address in 
an address list for identifying the list and detecting the use of the 
address list by another mailer.

[Revise item e to read as follows:]
    e. If a mailer states that it has obtained an address list from 
another party, and USPS locates a seed address when processing that 
address list for Level 3 Service, USPS will notify both the mailer who 
submitted the address list as well as the CDS subscriber to whom USPS 
has assigned the seed address. USPS will provide the CDS subscriber 
with the identity of the mailer, and will provide the mailer with the 
identity of the CDS subscriber. USPS will not release to the mailer 
those portions of the address list for the ZIP Codes containing the 
seed address, unless USPS receives written authorization to do so from 
the CDS subscriber if the mailer has obtained the address list from the 
CDS subscriber or a party acting on behalf of the CDS subscriber. USPS 
only will release those portions of the address list for ZIP Codes not 
containing seed addresses if the mailer meets all other USPS address 
sequencing requirements.
2.0 CARD PREPARATION AND SUBMISSION
* * * * *
[Revise title and text of 2.2 to read as follows:]

2.2 Limitations

    The mailer is required to remit all fees to USPS for address 
sequencing services performed by USPS, including service for which USPS 
does not release to the mailer a ZIP Code containing a seed address. 
See A920.5 below. a. In order to obtain a Level 3 Service, the mailer 
must submit address cards or an address file (address list) that 
contains at least ninety percent (90%), but not more than one hundred 
ten percent (110%) of all possible delivery addresses for a specific 5-
digit ZIP Code delivery area.
    b. If a mailer requests Level 3 Service for an address list and 
fails to meet any USPS address sequencing requirements for a ZIP Code 
within that address list, the mailer may resubmit the address list for 
Level 3 Service for the 5-digit ZIP Code that fails to meet USPS 
requirements. In the event the mailer fails to meet all USPS address 
sequencing requirements for the 5-digit ZIP code on the third time it 
submits the address list to USPS, USPS will not accept the address list 
for that 5-digit ZIP Code for a period of 1 year from the date the 
mailer submits the address list to USPS for the third time.
* * * * *
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes if the proposal is adopted.

United States Postal Service Processing Acknowledgement Form (PAF) for 
Level 3 Address Sequencing Service

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A mailer or a party acting on behalf of a mailer (Mailer), who 
submits an address list to the United States Postal Service (USPS) 
for Level 3 Address Sequencing Service, must submit the following 
completed documents to USPS at the time it submits the address list:

1. USPS PAF Form. This USPS Processing Acknowledgement Form (PAF) 
for Level 3 Address Sequencing Service, to which is attached:
a. Address File Obtained from Another Party. A Mailer who obtains an 
address list, or portion thereof, from another party, must attach a 
written Authorization from a Computerized Delivery Sequence (CDS) 
subscriber to submit the address list to USPS for Level 3 Address 
Sequencing; and/or
    b. Address File Created or Developed by Mailer. A Mailer who 
states that it, or a party acting on its behalf, created or 
developed the address list, or portion thereof, must describe the 
process by which the address list was created or developed to the 
satisfaction of USPS; and

2. USPS Delivery Unit Summary and Processing Acknowledgement Form.

CDS subscribers may include ``seed'' addresses in their address 
lists to assist in identifying their lists. A seed address is a 
fictitious address that qualified CDS subscribers may elect to 
obtain from USPS. In the event USPS locates a seed address in an 
address list submitted for Level 3 Service and USPS has not assigned 
that seed address to the Mailer submitting the address list, and the 
Mailer has advised USPS that it obtained the address list from 
another party, USPS shall notify both the Mailer and the CDS 
subscriber that it has located the seed address. The Mailer and the 
CDS subscriber will be responsible for resolving issues concerning 
Mailer's use of the address list.

USPS will not release to the Mailer that portion of the address list 
for the ZIP Code containing the seed address until it receives an 
Authorization from the CDS subscriber. USPS will not release to the 
Mailer the identity of the seed address, or the address ranges or 
carrier routes containing the seed address. Provided that the 
address list meets all other USPS requirements for Address 
Sequencing Services, USPS shall release to the Mailer other ZIP 
Codes that do not contain seed addresses.

The Mailer is required to remit all fees to USPS for Address 
Sequencing Services performed by USPS, including service for which 
USPS does not release a ZIP Code containing a seed address. The 
Mailer is not relieved of its obligation to pay USPS for Address 
Sequencing Service performed for ZIP Codes containing seed addresses 
that USPS does not release to the Mailer. In the event Mailer does 
not timely remit all payments due to USPS, USPS may cancel the 
Mailer's CDS subscription, refuse to accept Mailer's address lists 
for Address Sequencing Services, discontinue other services provided 
by USPS to Mailer, initiate collection efforts, or seek other 
remedies.

Mailers must satisfy the requirements for and obtain Level 3 Address 
Sequencing Service for an address list in order to be eligible to 
obtain a Computerized Delivery Sequence (CDS) subscription from USPS 
for that address list.

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[[Page 64880]]

Mailers must comply with USPS requirements for Address Sequencing 
Services and CDS subscriptions, including payment of all fees, that 
are set forth in the USPS Domestic Mail Manual (DMM) A920, 
Electronic Address Sequence (EAS) Service and CDS User Guides. USPS 
publishes these materials at http://www.usps.com.
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Mailer Information:

Company Name:
Primary Contact: Secondary Contact:

Mailing Address:

City: State: ZIP+4:

Primary Contact Phone Number:
Primary Contact Fax Number: Primary Contact:

Email:

Secondary Contact Phone Number: Secondary Contact Fax Number: 
Secondary Contact:

Email:

Is Mailer a Current USPS Computerized Delivery Sequence (CDS) 
Customer? Yes No

If yes, what is Mailer's USPS Computerized Delivery Sequence (CDS) 
Customer Number?

Did Mailer obtain any portion of this address list from another 
party? Yes No

If no, attach a written description of how Mailer created or 
developed the address list to this PAF Form.

If yes, is the written Authorization attached to this PAF Form that 
permits Mailer to submit the address list to USPS for Level 3 
Service the Authorization that Mailer received for this the address 
list? Yes No

If yes, does the Authorization state that seed addresses were 
removed from list? Yes No
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Certification and Signature: Mailer, by submitting this PAF Form, 
and attachment(s), represents and warrants the following to USPS: 
(1) all information furnished on this PAF Form and attachment(s) is 
accurate, truthful and complete; (2) the undersigned is authorized 
to sign and deliver this PAF Form and attachment(s) on Mailer's 
behalf; (3) Mailer has read and agrees to the terms and conditions 
for USPS Address Sequencing Service set forth in Section A920 of the 
Domestic Mail Manual (DMM) and USPS EAS and CDS User Guides; (4) 
Mailer agrees to pay all fees assessed by USPS in accordance with 
the DMM; and (5) Mailer acknowledges that all requests for USPS 
Address Sequencing Service processing will be identified on a USPS 
password-secured Web site.

I understand that anyone who furnishes false or misleading 
information or who omits information requested on this PAF Form or 
attachment(s) may be subject to criminal sanctions (including fines 
and imprisonment), and/or civil sanctions (including multiple 
damages and civil penalties). The rights and remedies set forth in 
18 U.S.C. 1001 shall be incorporated as if fully set forth herein.

 Name and Title of Mailer's Authorized Representative (please print):--

 Signature of Mailer's Authorized Representative:----------------------

 Date:-----------------------------------------------------------------

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 04-24887 Filed 11-8-04; 8:45 am]
BILLING CODE 7710-12-P