[Federal Register Volume 71, Number 61 (Thursday, March 30, 2006)]
[Rules and Regulations]
[Pages 16043-16048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-3117]


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POSTAL SERVICE

39 CFR Part 111


Parcel Return Service

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule adopts new mailing standards to make Parcel 
Return Service a permanent classification. Parcel Return Service 
replaces the former Parcel Return Services experiment and is now open 
to all postal customers who meet the participation requirements.

DATES: Effective Date: April 2, 2006.

FOR FURTHER INFORMATION CONTACT: Michael F. Lee, 202-268-7263.

SUPPLEMENTARY INFORMATION:

Background

    The Postal Service published a final rule in the Federal Register 
on September 18, 2003 (68 FR 54664), introducing a new service called 
Parcel Return Services (PRS). This experimental service allowed 
authorized permit holders or their agents to pick up parcels returned 
by consumers at return bulk mail centers and return delivery units 
across the country.
    We filed a Request for Recommended Decision with the Postal Rate 
Commission on October 17, 2005, to make the experimental classification 
permanent. On March 3, 2006, the Postal Rate Commission issued its 
Recommended Decision that PRS become a permanent service offering 
(Docket No. MC2006-1). The Governors of the Postal Service acted on the 
Recommended Decision in Resolution 06-3 on March 22, 2006, establishing 
PRS as a permanent mail classification. The Governors set April 2, 
2006, as the effective date of the change.

Summary of Changes

    We are changing the name of PRS from the plural ``Parcel Return 
Services'' to the singular ``Parcel Return Service.''
    There are two major changes in the permanent PRS classification as 
compared with the experimental service offering. We are not offering 
Bound Printed Matter (BPM) Return Service as part of the permanent set 
of rates for PRS, because there was no reported BPM volume during the 
experiment. Consequently, only Parcel Select Return Service remains. At 
the request of PRS mailers, we will now offer Certificate of Mailing as 
an extra service for PRS parcels. A mailer returning a parcel using PRS 
can bring it to a local post office and purchase a Certificate of

[[Page 16044]]

Mailing as proof that the parcel was mailed.
    We chose to retain the name ``Parcel Select Return Service'' for 
labeling, rating, and data collection purposes. This continuity will 
allow mailers to use their existing label stock; no label redesign is 
necessary. We will use a similar naming convention for any future 
service offerings under the PRS umbrella.
    We provide the new standards, and how they are applied for Parcel 
Return Service, below.
    We adopt the following amendments to Mailing Standards of the 
United States Postal Service, Domestic Mail Manual (DMM), incorporated 
by reference in the Code of Federal Regulations. See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.



0
Accordingly, 39 CFR Part 111 is amended as follows:

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 Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:

500 Additional Services

* * * * *

507 Mailer Services

* * * * *
[Remove mailing standards for the Parcel Return Services experiment in 
709.5.0. Add new 507.11.0 to make Parcel Return Service a permanent 
classification as follows:]
11.0 PARCEL RETURN SERVICE

11.1 Basic Information

11.1.1 Description
    The Parcel Return Service (PRS) standards in 11.0 apply to parcels 
that are retrieved in bulk by authorized permit holders or their 
agents. The permit holder guarantees payment of postage and retrieval 
of all PRS parcels mailed with a PRS label. When a merchant or other 
party provides an approved PRS label to its customers or others, the 
merchant or other party designates the permit holder identified on the 
label as their agent for receipt of mail bearing that label, and 
authorizes the USPS to provide that mail to the permit holder or its 
designee. The permit holder has the option of retrieving parcels at a 
designated return delivery unit (a postal facility designated as a 
pickup location for PRS parcels, also known for PRS purposes as an 
``RDU'') or at the return bulk mail center (also known for PRS purposes 
as an ``RBMC'') that serves the post office where returned parcels are 
deposited by customers. Payment for parcels returned under PRS is 
deducted from a separate advance deposit (postage-due) account funded 
through the Centralized Account Processing System (CAPS).
11.1.2 Conditions for Mailing
    Parcels may be mailed as PRS when all of the following conditions 
apply:
    a. Parcels contain eligible matter as described in 153.3 and 153.4.
    b. Parcels bear a PRS label that meets the standards in 11.4.
    c. Parcels show the permit number, and the permit holder has paid 
the annual PRS permit fee and the annual PRS accounting fee.
11.1.3 Services
    Pieces using PRS may not bear an ancillary service endorsement (see 
102.4.0 and 507.1.5). Only a Certificate of Mailing, when the fee is 
paid by the mailer returning the parcel, is available as an extra 
service.
11.1.4 Customer Mailing Options
    Returned parcels may be deposited as follows:
    a. At any post office, station, or branch.
    b. In any collection box (except an Express Mail box).
    c. With any letter carrier.
    d. As part of a collection run for other mail (special arrangements 
may be required).
    e. At any place designated by the postmaster for the receipt of 
mail.
11.1.5 Application
    Companies who wish to participate in PRS must send a request on 
company letterhead to the manager, Business Mailer Support (see 608.8.0 
for address). The request must contain the following information:
    a. Company name and address.
    b. An individual's contact name, telephone number, fax number, and 
e-mail address.
    c. The rate category or categories to be used, and the proposed 
retrieval locations (delivery units and bulk mail centers).
    d. A description of the electronic returns manifesting system to be 
used to document returns listed by location and rate eligibility.
11.1.6 Approval
    The manager, Business Mailer Support reviews each request and 
proceeds as follows:
    a. If the applicant meets the criteria, the manager, Business 
Mailer Support approves the letter of request. The USPS will require 
the customer to enter into a Service Agreement, may require additional 
documentation, and may conduct periodic review and inspection of each 
participant's PRS processing and accounting operations.
    b. If the application does not meet the criteria, the manager, 
Business Mailer Support denies the request and sends a written notice 
to the applicant with the reason for denial.
11.1.7 Cancellation
    USPS may cancel a PRS permit for any of the following reasons:
    a. The permit holder fails to pay the required postage and fees for 
returned parcels.
    b. The permit holder does not maintain adequate available funds to 
cover postage and fees for returned parcels.
    c. The permit holder does not fulfill the terms and conditions of 
the PRS permit authorization.
    d. The return labels do not conform to the specifications in 11.4.
11.1.8 Reapplying After Cancellation
    To receive a new PRS permit after cancellation under 11.1.7 the 
mailer must:
    a. Submit a letter to the manager, Business Mailer Support 
requesting a permit and a new agreement.
    b. Pay a new permit fee.
    c. Provide evidence showing that the reasons for cancellation no 
longer exist.
    d. Maintain adequate available funds to cover the expected number 
of returns.
11.1.9 Pickup Schedule
    Permit holders or their agents must set up a recurring or standing 
appointment to retrieve PRS parcels. If the permit holder (or their 
agent) already has existing appointments to deliver Parcel Select 
parcels to a destination bulk mail center or to a destination delivery 
unit, those same appointments can be used for retrieving PRS parcels. 
Permit holders or their agents must retrieve parcels on a regular 
schedule as follows:
    a. From RBMCs, at a minimum of every 48 hours, excluding Sundays 
and USPS holidays.
    b. From RDUs, according to the Service Agreement.

[[Page 16045]]

11.1.10 Parcels Endorsed Hold for Pickup
    PRS participants must pay the appropriate Parcel Select RDU rate 
under 11.3 for any unclaimed, refused, undeliverable as addressed, or 
recalled parcels that are endorsed ``Hold For Pickup'' (under 455.4.6 
and 508.1.3) and that bear the marking ``PARCEL RETURN SERVICE 
REQUESTED'' or ``PRS REQUESTED'' followed by a unique 569 prefix ZIP 
Code.

11.2 Postage and Fees

11.2.1 Postage
    There are two 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.
11.2.2 Permit Fee
    The participant must pay a $160.00 permit fee annually at the post 
office where the PRS permit is held.
11.2.3 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 $500.00.

11.3 Rates

11.3.1 Parcel Return Service--Return Delivery Unit
    Regardless of weight (up to the maximum weight of 70 pounds), any 
parcel that measures more than 108 inches (but not more than 130 
inches) in combined length and girth must pay the oversized rate.

------------------------------------------------------------------------
                    Length plus girth                          Rate
------------------------------------------------------------------------
Not over 108 inches.....................................           $2.11
Oversized (Over 108 inches up to 130 inches)............            7.92
------------------------------------------------------------------------

11.3.2 Parcel Return Service--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.
    See Exhibit 11.3.2, Parcel Return Service--Return BMC Machinable.

                          Exhibit 11.3.2.--Parcel Return Service--Return BMC Machinable
----------------------------------------------------------------------------------------------------------------
            Weight not over  (pounds)               Zones 1 & 2       Zone 3          Zone 4          Zone 5
----------------------------------------------------------------------------------------------------------------
1...............................................           $2.21           $2.25           $2.31           $2.40
2...............................................            2.81            2.85            2.92            3.04
3...............................................            3.39            3.43            3.52            3.65
4...............................................            3.60            3.96            4.07            4.22
5...............................................            3.78            4.38            4.52            4.73
6...............................................            3.95            4.76            4.90            5.21
7...............................................            4.11            5.09            5.25            5.64
8...............................................            4.71            5.40            5.57            6.05
9...............................................            4.85            5.65            5.89            6.42
10..............................................            5.03            5.98            6.20            6.77
11..............................................            5.16            6.20            6.47            7.08
12..............................................            5.32            6.41            6.75            7.39
13..............................................            5.46            6.58            7.00            7.66
14..............................................            5.59            6.70            7.26            7.93
15..............................................            5.70            6.88            7.48            8.18
16..............................................            5.82            7.06            7.69            8.41
17..............................................            5.96            7.23            7.93            8.63
18..............................................            6.05            7.39            8.13            8.83
19..............................................            6.18            7.55            8.32            9.03
20..............................................            6.28            7.69            8.48            9.21
21..............................................            6.38            7.84            8.64            9.39
22..............................................            6.49            7.97            8.79            9.55
23..............................................            6.58            8.14            8.94            9.71
24..............................................            6.67            8.26            9.06            9.87
25..............................................            6.76            8.39            9.19           10.00
26..............................................            6.86            8.51            9.33           10.14
27..............................................            6.95            8.64            9.44           10.27
28..............................................            7.02            8.77            9.54           10.39
29..............................................            7.11            8.90            9.65           10.51
30..............................................            7.20            9.00            9.76           10.61
31..............................................            7.28            9.09            9.85           10.73
32..............................................            7.38            9.21            9.96           10.82
33..............................................            7.44            9.32           10.04           10.93
34..............................................            7.53            9.40           10.13           11.01
35..............................................            7.59            9.52           10.21           11.11
----------------------------------------------------------------------------------------------------------------

11.3.3 Parcel Return Service--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.
    See Exhibit 11.3.3, Parcel Return Service--Return BMC 
Nonmachinable.

[[Page 16046]]



                        Exhibit 11.3.3.--Parcel Return Service--Return BMC Nonmachinable
----------------------------------------------------------------------------------------------------------------
            Weight not over  (pounds)               Zones 1 & 2       Zone 3          Zone 4          Zone 5
----------------------------------------------------------------------------------------------------------------
1...............................................           $3.63           $3.67           $3.73           $3.82
2...............................................            4.23            4.27            4.34            4.46
3...............................................            4.81            4.85            4.94            5.07
4...............................................            5.02            5.38            5.49            5.64
5...............................................            5.20            5.80            5.94            6.15
6...............................................            5.37            6.18            6.32            6.63
7...............................................            5.53            6.51            6.67            7.06
8...............................................            6.13            6.82            6.99            7.47
9...............................................            6.27            7.07            7.31            7.84
10..............................................            6.45            7.40            7.62            8.19
11..............................................            6.58            7.62            7.89            8.50
12..............................................            6.74            7.83            8.17            8.81
13..............................................            6.88            8.00            8.42            9.08
14..............................................            7.01            8.12            8.68            9.35
15..............................................            7.12            8.30            8.90            9.60
16..............................................            7.24            8.48            9.11            9.83
17..............................................            7.38            8.65            9.35           10.05
18..............................................            7.47            8.81            9.55           10.25
19..............................................            7.60            8.97            9.74           10.45
20..............................................            7.70            9.11            9.90           10.63
21..............................................            7.80            9.26           10.06           10.81
22..............................................            7.91            9.39           10.21           10.97
23..............................................            8.00            9.56           10.36           11.13
24..............................................            8.09            9.68           10.48           11.29
25..............................................            8.18            9.81           10.61           11.42
26..............................................            8.28            9.93           10.75           11.56
27..............................................            8.37           10.06           10.86           11.69
28..............................................            8.44           10.19           10.96           11.81
29..............................................            8.53           10.32           11.07           11.93
30..............................................            8.62           10.42           11.18           12.03
31..............................................            8.70           10.51           11.27           12.15
32..............................................            8.80           10.63           11.38           12.24
33..............................................            8.86           10.74           11.46           12.35
34..............................................            8.95           10.82           11.55           12.43
35..............................................            9.01           10.94           11.63           12.53
36..............................................            9.11           11.05           11.74           12.65
37..............................................            9.19           11.13           11.80           12.71
38..............................................            9.23           11.20           11.85           12.76
39..............................................            9.29           11.29           11.90           12.81
40..............................................            9.33           11.34           11.94           12.87
41..............................................            9.40           11.43           11.98           12.92
42..............................................            9.43           11.49           12.03           12.96
43..............................................            9.47           11.55           12.08           12.99
44..............................................            9.53           11.61           12.12           13.02
45..............................................            9.56           11.66           12.27           13.06
46..............................................            9.63           11.74           12.30           13.09
47..............................................            9.68           11.78           12.33           13.12
48..............................................            9.71           11.85           12.35           13.15
49..............................................            9.77           11.91           12.38           13.18
50..............................................            9.78           11.96           12.40           13.21
51..............................................            9.85           12.00           12.43           13.25
52..............................................            9.89           12.09           12.46           13.28
53..............................................            9.90           12.12           12.47           13.31
54..............................................            9.95           12.14           12.50           13.34
55..............................................            9.99           12.16           12.53           13.37
56..............................................           10.03           12.18           12.55           13.40
57..............................................           10.08           12.18           12.55           13.44
58..............................................           10.12           12.20           12.57           13.47
59..............................................           10.15           12.21           12.59           13.50
60..............................................           10.20           12.22           12.59           13.53
61..............................................           10.24           12.23           12.61           13.56
62..............................................           10.27           12.24           12.66           13.59
63..............................................           10.31           12.24           12.71           13.63
64..............................................           10.35           12.24           12.74           13.66
65..............................................           10.38           12.27           12.78           13.69
66..............................................           10.43           12.27           12.83           13.72
67..............................................           10.47           12.28           12.89           13.75
68..............................................           10.47           12.28           12.91           13.78
69..............................................           10.53           12.28           12.96           13.82
70..............................................           10.56           12.28           13.00           13.85
Oversized.......................................           27.39           27.73           28.46           29.56
----------------------------------------------------------------------------------------------------------------


[[Page 16047]]

11.4 Label Formats

11.4.1 Label Preparation
    PRS labels must be certified by the USPS for use prior to 
distribution as defined in the Service Agreement. In addition, permit 
holders must obtain USPS certification for barcode symbologies. Any 
photographic, mechanical, or electronic process or any combination of 
these 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 11.4.3.
11.4.2 Labeling Methods
    If all applicable contents and formats are approved (including 
instructions to the user), permit holders or their agents may 
distribute a PRS label 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 
printing by the customer.
11.4.3 Instructions
    Regardless of label distribution method, permit holders or their 
agents must always provide written instructions 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.''
    c. ``If you are reusing the original container to return the 
merchandise, use the label to cover your original delivery address, 
barcodes, and any other postal information on the container. If it is 
not possible to cover all that information with the label, remove the 
old labels, 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 the new box.''
    d. ``Once repackaged and labeled, mail the parcel at a post office, 
deposit it in a collection box, or leave it with your letter carrier.''
11.4.4 Label Format Elements
    There is no minimum size for PRS labels; however, the label must be 
big enough to accommodate all of the 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 large enough to be 
legible from a normal reading distance and be separate from other 
elements on the label. See the PRS label format examples in 11.4.5a and 
11.4.5b. 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 must include:
    1. Line 1: In capital letters at least \3/16\'' high, ``PARCEL 
SELECT RETURN SERVICE'' (or ``PARCEL SELECT RTN SVC'').
    2. Line 2: In all capital letters, the permit holder's name, left 
justified, followed by ``PERMIT NO.'', followed by the actual 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 for Parcel Return Service labels. The address must 
contain the unique PRS ZIP Code (569 prefix) assigned by the USPS to 
the particular customer or agent. The address must consist of two or 
three lines in all capital letters, as specified below. The ZIP Code 
must be printed in at least 12-point type on a line directly below the 
Parcel Return Service line.
    1. Line 1: PRS AGENT'S OR MERCHANT'S NAME.
    2. Line 2: ``PARCEL RETURN SERVICE'' (or ``PARCEL RETURN SVC'').
    3. Line 3: The unique PRS 569 ZIP Code assigned 
by the USPS in the service agreement. The unique ZIP Code may 
alternatively be located as part of the second line of the address.
    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, 
Confirmation Services Technical Guide, 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 on PRS 
labels must contain the value ``58.''
    3. Text above the barcode must read ``USPS PARCEL RETURN SERVICE'' 
(or ``USPS PARCEL RTN SVC''). If the barcode is a single concatenated 
barcode with the postal routing code described in 11.4.4g, the text 
above the barcode must read ``BMC ZIP--USPS PARCEL RETURN SERVICE'' (or 
``BMC ZIP--USPS PARCEL RTN SVC''). In the text below the barcode, the 
leading application identifier (``420''), ZIP Code information, and 
subsequent numbers must be parsed as shown in 11.4.5b.
    4. The clear zone between the barcode, the 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 708.5.0, except that 
the text below the barcode must read ``BMC ZIP-,'' followed by the 
unique PRS ZIP Code assigned by USPS in the service agreement.
    h. Mailer identification (ID). The permit holder assigns a mailer 
ID to each individual client (merchant). An individual mailer ID must 
appear in the lower right corner as follows:
    1. The mailer ID must consist of a single, uppercase alpha 
character followed by a two-, three-, or four-digit number, with no 
spaces or dashes. For example: X0123.
    2. The mailer ID must be at least \3/16\ inch high and be 
surrounded by a box, with a clearance of at least \3/16\ inch between 
the mailer ID characters and the edges of the box.

[[Page 16048]]

    3. 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 the barcodes described 
in 708.5.0, Barcoding Standards for Parcels.
11.4.5 PRS Label Format Examples
    The following are PRS label format examples. Note: The ZIP Code 
56999 appears in each example for demonstration purposes only.
    a. Parcel Select Return Service label using a separate PRS barcode 
and postal routing barcode.
[GRAPHIC] [TIFF OMITTED] TR30MR06.000

    b. Parcel Select Return Service label using a concatenated barcode.
    [GRAPHIC] [TIFF OMITTED] TR30MR06.001
    
* * * * *

700 Special Standards

* * * * *

709 Experimental Classifications and Rates

* * * * *
[Delete 709.5.0, Parcel Return Services, and renumber sections 709.6.0 
through 709.8.0 accordingly.]
* * * * *

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 06-3117 Filed 3-29-06; 8:45 am]
BILLING CODE 7710-12-P