[Federal Register Volume 71, Number 187 (Wednesday, September 27, 2006)]
[Proposed Rules]
[Pages 56588-56656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7751]



[[Page 56587]]

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Part II





Postal Service





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39 CFR Part 111



New Standards for Domestic Mailing Services; Proposed Rule

  Federal Register / Vol. 71, No. 187 / Wednesday, September 27, 2006 / 
Proposed Rules  

[[Page 56588]]


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POSTAL SERVICE

39 CFR Part 111


New Standards for Domestic Mailing Services

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: On May 3, 2006, the Postal Service filed a request with the 
Postal Rate Commission to change prices for virtually all domestic 
mailing services. The Commission designated the filing as Docket No. 
R2006-1. This proposed rule provides the mailing standards that would 
accompany the new prices if the R2006-1 price change proposal is 
adopted.

DATES: We must receive your comments on or before November 13, 2006.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, 
Washington DC 20260-3436. You may inspect and photocopy all written 
comments at USPS Headquarters Library, 475 L'Enfant Plaza SW., 11th 
Floor N, Washington DC between 9 a.m. and 4 p.m., Monday through 
Friday.

FOR FURTHER INFORMATION CONTACT: Joel Walker, 202-268-7266.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2006-1 includes mail classification changes, new pricing structures, 
and price changes for most domestic mailing services. This proposed 
rule contains the revisions to Mailing Standards of the United States 
Postal Service, Domestic Mail Manual (DMM) that we would adopt to 
implement the R2006-1 price change proposal. We summarize our revisions 
by class of mail and extra service, and we provide our proposed changes 
to the mailing standards in the DMM. We invite your comments on all 
aspects of our proposed standards.
    We also provide the proposed prices, price categories, and price 
structures that are currently under review by the Postal Rate 
Commission. The pricing proposal is subject to separate Commission 
proceedings. For more information visit http://www.prc.gov.
    This is the first time since 2001 that we have proposed any 
restructuring to our prices. We adjusted prices in January 2006 solely 
to fund a $3.1 billion escrow account required by federal law. When our 
new prices are implemented in 2007, postage prices will have grown at 
or below the Consumer Price Index since 1971.

Overview

    Our pricing proposal reflects changes in operations and the 
marketplace. Our proposal would enhance efficiency, offer more choices, 
and ensure that all types of mail cover their costs. We include 
incentives to create mailpieces compatible with our processing systems 
and deposit flats and parcels closer to where they are delivered.
    Our proposed prices recognize that each shape of mailpiece--letter, 
flat, and parcel--has substantially different processing costs that 
need to be covered. Our current prices do not distinguish between 
shapes as much as they could. For example, in First-Class Mail, our 
current price is 63 cents for a 2-ounce piece regardless of whether it 
is a letter, flat, or parcel.
    We also provide opportunities to mitigate the impact of price 
increases. If the contents of a First-Class Mail flat are folded and 
placed into a letter-size envelope, the mailer could save as much as 20 
cents. If a parcel is reconfigured as a flat, the mailer could save up 
to 38 cents.
    To better align mail preparation with our processing capabilities 
and to maximize access to lower rates for mailers, we propose to 
require scheme preparation wherever appropriate. We define the terms 
``5-digit/scheme'' and ``3-digit/scheme'' as the preparation of bundles 
and containers for 5-digit and 3-digit ZIP Code combinations in any of 
our scheme labeling lists, and single 5-digit and 3-digit ZIP Codes not 
on these lists. We also propose to require all flat-size pieces to be 
uniformly thick.

First-Class Mail

    Our proposal introduces prices based on the shape of mail and our 
relative costs, with separate prices for letters, flats, and parcels. 
As shape becomes more important, weight becomes less important, and our 
proposal reduces prices for many pieces over 1 ounce.

First-Class Mail Retail Letters, Flats, and Parcels

    The single-piece 1-ounce First-Class Mail letter price would 
increase $0.03, to $0.42, and the single-piece card price also would 
increase $0.03, to $0.27. The additional-ounce price would decrease 
$0.04, to $0.20.
    We propose a ``forever stamp'' to make future price changes more 
convenient for consumers. The postage value of the forever stamp would 
equal the First-Class Mail single-piece 1-ounce letter rate at any time 
in the future, without the addition of extra postage.
    Our pricing proposal would eliminate the nonmachinable surcharge. 
Instead, a letter-size mailpiece with nonmachinable characteristics 
would pay the flat-size price. Our additional handling costs are 
included in the proposed 1-ounce flat-size price, so no surcharge is 
necessary. To qualify for letter rates, the maximum weight for letter-
size pieces would be 3.5 ounces.

First-Class Mail Discount Letters and Flats

    The additional-ounce price for automation letters would decrease 
from $0.237 to $0.155. We would maintain the 150-piece minimum tray 
preparation requirement for automation First-Class Mail letters and 
cards. Sort levels would be 5-digit/scheme, 3-digit/scheme, 3-digit 
origin, automation area distribution center (AADC), and mixed AADC. We 
propose a simplified preparation to allow mailers of machinable letters 
to sort only to the AADC and mixed AADC levels. We would eliminate the 
carrier route automation preparation and discounts. The maximum weight 
for letter rates, including automation pieces, would be 3.5 ounces.
    We would expand the current requirement for pieces to be 
rectangular to all flats. The physical standards for automation flats 
would be the current criteria for AFSM 100 pieces, with new standards 
for flexibility. We also propose to lessen the deflection standard.
    Our proposal would eliminate the nonmachinable surcharge. Instead, 
letter-size mailpieces with nonmachinable characteristics would pay 
flat-size prices. Presorted prices would be available for machinable 
letters sorted to the 3-digit origin, AADC, and mixed AADC levels.
    To help reduce the costs of handling mail in letter trays, we 
propose a no-overflow tray option for automation letters. In addition, 
to encourage fuller trays, we propose to change our definition of a 
``full letter tray'' to one in which the pieces fill the length of the 
tray between 85 percent and 100 percent full.

First-Class Mail Discount Parcels

    The structure for discount parcels includes new workshare prices. 
The proposed rate levels are 5-digit, 3-digit, ADC, and single piece. 
At least 10 pounds of parcels would be required for 5-digit sacks, 3-
digit sacks, and ADC sacks. Remaining pieces sorted to a mixed ADC sack 
would pay the single-piece First-Class Mail parcel price.
    Discount parcels would require a 5-digit UCC/EAN 128 or POSTNET 
barcode. Unless prepared in 5-digit containers or paid at the single-
piece

[[Page 56589]]

rates, a surcharge would apply to all parcels that are not barcoded or 
weigh less than 2 ounces, or to irregularly shaped parcels such as 
triangles, tubes, rolls, and similar pieces.

Standard Mail

    Our proposed prices encourage mail that is compatible with our 
operations and drop shipped closer to its destination. As in First-
Class Mail, Standard Mail pricing has greater recognition of shape and 
reduced reliance on weight.

Standard Mail Letters

    Automation letter sort levels would be 5-digit/scheme, 3-digit/
scheme, AADC, and mixed AADC. We propose a simplified preparation to 
allow mailers of machinable letters to sort only to the AADC and mixed 
AADC levels.
    Nonmachinable letter sort levels would be 5-digit, 3-digit, ADC, 
and mixed ADC, for which there would be separate rates. We would 
replace the nonmachinable surcharge with a separate rate structure for 
nonmachinable letters up to 3.3 ounces. Nonmachinable letters over 3.3 
ounces would pay the flat-size rate or the Not Flat-Machinable rate.
    Destination delivery unit (DDU) drop shipment entry rates would not 
be available for letters. However, destination sectional center 
facility (DSCF) entry rates would be allowed for DDU entry of some 
Enhanced Carrier Route letters, including letters with simplified 
addresses. Enhanced Carrier Route automation basic rates would be 
eliminated.
    To help reduce the costs of handling mail in letter trays, we 
propose a no-overflow tray option for automation letters. In addition, 
to encourage fuller trays, we propose to change our definition of a 
``full letter tray'' to one in which the pieces fill the length of the 
tray between 85 percent and 100 percent full.

Standard Mail Flats

    The physical standards for automation flats would be the criteria 
for AFSM 100 pieces, with new standards for flexibility. This change 
would maximize the number of flats we can process in automated 
operations and deliver as flats. We also propose to lessen the 
deflection standard.
    We propose to increase the maximum size for carrier route flats so 
that the same standards apply to all flats, regardless of the rate 
paid. We would expand the current requirement for pieces to be 
rectangular to all flats, except Customized MarketMail.

Standard Mail Not Flat-Machinable Pieces

    Our proposal includes a new Not Flat-Machinable (NFM) 
classification for rigid flat-size pieces and for pieces that are 
currently automation-compatible only by meeting UFSM 1000 standards. We 
propose no bundling requirement for most NFMs and to have mailers 
prepare pieces in 5-digit/scheme, 3-digit, ADC/BMC, and mixed ADC/BMC 
containers. We propose allowing a DDU entry discount for NFMs sorted to 
5-digit destinations when drop shipped directly to the DDU. There would 
be no minimum for NFMs drop shipped to DDUs. Unless prepared in 5-
digit/scheme containers, a surcharge would apply to all NFMs that are 
not barcoded.

Standard Mail Parcels

    We propose to eliminate the residual shape surcharge for Standard 
Mail parcels. We would no longer offer a $0.03 machinable barcode 
discount. Instead, parcel prices would include a requirement for 
barcodes. Unless prepared in 5-digit containers, a surcharge would 
apply to all parcels that are not barcoded.
    We would rename ``irregular'' parcels as ``nonmachinable'' parcels 
and remove the bundling requirement for all Standard Mail nonmachinable 
parcels except enhanced carrier route pieces. We propose to reduce the 
required minimum quantity of nonmachinable parcels in sacks to 10 
pounds per sack.
    We would allow mailers to commingle machinable parcels, 
nonmachinable parcels, and the new Not Flat-Machinable pieces when they 
are able to combine them in 5-digit containers. We would allow mailers 
to combine certain ZIP Codes for Standard Mail parcels, machinable 
Parcel Select, and Bound Printed Matter parcels when prepared in 3-
digit containers and entered at designated SCFs.
    We propose to allow a DDU entry discount for parcels sorted to 5-
digit destinations when drop shipped directly to the DDU. There would 
be no minimum for the amount of parcels drop shipped to a DDU. The DDU 
discount is currently available only for pieces sorted to carrier 
routes.

Customized MarketMail

    Rates for Customized MarketMail would equal the 5-digit rate for 
Not Flat-Machinable pieces, and mailers would still be required to drop 
ship Customized MarketMail pieces to DDUs.

Detached Address Labels

    Our proposal includes a new $0.015 charge for detached address 
labels with Enhanced Carrier Route saturation flat-size pieces. Mailers 
who prepare mail with addresses on their mailpieces could avoid the new 
charge.

Periodicals

    Our proposed Periodicals prices encourage mailers to use pallets 
rather than sacks, and to fill sacks with more mail. We also enhance 
drop ship incentives to encourage mailers, including publishers of high 
editorial content publications, to enter Outside-County mail closer to 
its destination.
    The pricing proposal includes a new $0.85 Outside-County Container 
Rate. The container rate would apply to pallets, sacks, or trays of 
Outside-County Periodicals mail. We also propose new drop ship prices 
based on nonadvertising pounds, in addition to increased per-piece drop 
ship discounts.
    To encourage fuller letter trays, we propose to change our 
definition of a ``full letter tray'' to one in which the pieces fill 
the length of the tray between 85 percent and 100 percent full.

Package Services

    Package Services includes Parcel Post, Bound Printed Matter, Media 
Mail, and Library Mail. Our proposal simplifies Package Services 
offerings and moves toward more efficient handling of parcels.

Parcel Post

    Currently, parcels weighing less than 15 pounds and measuring more 
than 84 inches in combined length and girth are charged the 15-pound 
rates (the ``balloon rate''). Under our proposal, parcels weighing less 
than 20 pounds and measuring more than 84 inches in combined length and 
girth would be charged the 20-pound rates.
    The current $0.03 barcode discount available for machinable Parcel 
Select destination bulk mail center (DBMC) entry mail would be 
incorporated into the price and a barcode would be required. 
Nonbarcoded machinable pieces could claim only the applicable Intra-
BMC/ASF rate.
    We do not propose any changes to mail preparation standards for 
Parcel Post.

Bound Printed Matter

    Single-piece Bound Printed Matter would be renamed ``nonpresorted'' 
Bound Printed Matter and would be eliminated as a retail option. The 
$0.08 discount off the parcel price for flat-size pieces increases to 
$0.16. The $0.03 per piece POSTNET barcode discount for flat-size mail 
and the $0.03 per piece barcode discount for machinable parcels would 
remain the same.

[[Page 56590]]

    We propose to require 5-digit/scheme and 3-digit/scheme bundles and 
5-digit/scheme sacks for presorted flat-size Bound Printed Matter. We 
propose to require 5-digit/scheme bundles for nonmachinable parcels 
weighing less than 10 pounds and 5-digit/scheme sacks for machinable 
and nonmachinable parcels.

Media Mail and Library Mail

    We propose to require 5-digit/scheme and 3-digit/scheme bundles and 
5/digit scheme sacks for presorted flat-size Media Mail and Library 
Mail. We propose to require 5-digit/scheme bundles for nonmachinable 
parcels and 5-digit/scheme sacks for machinable and nonmachinable 
parcels.

Priority Mail

    We continue to offer convenience in Priority Mail. The USPS-
produced flat-rate envelope still would pay the 1-pound price, $4.65 
under the proposal, regardless of weight or destination. USPS-produced 
flat-rate boxes would pay $8.80 under the proposal, regardless of 
weight or destination, and would become a permanent offering. Prices 
for all Priority Mail pieces weighing over 25 pounds would decrease for 
all zones, many by as much as 20 percent.
    Currently, Priority Mail pieces weighing less than 15 pounds and 
measuring more than 84 inches in combined length and girth are charged 
the 15-pound rates (the ``balloon rate''). Under the proposal, Priority 
Mail pieces weighing less than 20 pounds and measuring more than 84 
inches in combined length and girth would be charged the 20-pound 
rates. The new balloon rate would apply only to pieces addressed for 
local delivery and to zones 1-4.
    Priority Mail pieces that exceed 1 cubic foot and are addressed to 
zones 5-8 could be subject to a new dimensional weight price. Postage 
for these pieces would be rated at the greater of their actual weight 
or their dimensional weight. In general, if a piece is relatively light 
for its size, it may be subject to a dimensional weight price. 
Dimensional weight is calculated using one of two formulas, one for 
rectangular and one for nonrectangular pieces.

Express Mail

    Express Mail pieces often contain material that ranges from a half 
pound to 2 pounds. Currently, these pieces pay the 2-pound price. To 
keep Express Mail a viable, low-cost alternative for mailers, the 
pricing proposal would add a new 1-pound price.
    The flat-rate envelope would continue to pay the half-pound price, 
regardless of weight.

Extra Services

    Our proposal keeps insured mail reliable, easy, and affordable. All 
insured pieces would have a barcoded label and receive a delivery scan. 
We would not require a signature for insured items with an indemnity of 
$200 or less.
    We propose new prices for Bulk Parcel Return Service, Business 
Reply Mail, Certificate of Mailing, Certified Mail, Collect on 
Delivery, Delivery Confirmation, Bulk Insurance, Express Mail 
Insurance, Merchandise Return Service, Money Orders, Parcel Airlift, 
Parcel Return Service, Registered Mail, Restricted Delivery, Return 
Receipt, Return Receipt for Merchandise, Signature Confirmation, and 
Special Handling.

Other Services

    Our proposal seeks to modernize our services, improve address 
quality, and reduce undeliverable-as-addressed mail.
    The Address Change Service electronic option for First-Class Mail 
would decrease from $0.21 to $0.06. All other classes of mail would 
increase from $0.21 to $0.25. Manual Address Correction Service for all 
classes of mail would decrease from $0.75 to $0.50.
    A new automated option for Address Change Service would allow 
First-Class Mail letters to receive the first two notices at no charge, 
then each additional notice for $0.05 each. Standard Mail letters would 
receive the first two notices at $0.02, then each additional notice for 
$0.15 each. This new option would require mailers to use the new 4-
State Customer Barcode.
    Our proposed standards recognize the value of address matching 
software by encouraging mailers of all discount letters and flats to 
match their addresses using a Coding Accuracy Support System (CASS)--
certified address matching process and the correct ZIP+4 code on each 
piece in their mailings. Because smaller mailers may need time to 
initiate such a change, we propose to implement this requirement in 
July 2009.
    The fee structure for Confirm service would change from the Silver, 
Gold, and Platinum tiers to a unit-based structure. Customers would pay 
standardized annual fees and purchase blocks of units that are redeemed 
for Confirm scans. Units are redeemed at the rates of one unit per 
First-Class Mail scan or five units per scan for any other class of 
mail. The cost per block of units declines as volume thresholds are 
reached.
    On-site meter services are no longer offered. The fees associated 
with on-site meter service, meter resetting, examination, and checking 
meters in and out of service would be eliminated.
    Individual post office box holders at different locations may 
experience varying price changes as we continue to align prices with 
our costs for each location. Our proposal would also align the Caller 
Service fees.
    We propose price changes for Address Sequencing Service, Mailing 
List Service, Permit Imprint fees, Pickup on Demand service, Premium 
Forwarding Service, Shipper Paid Forwarding, Stamped Cards, Stamped 
Envelopes, and all annual mailing fees.
    Although we are exempt from the notice and comment requirements of 
the Administrative Procedure Act (5 U.S.C 410 (a)), we invite comments 
on the following proposed revisions 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 part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.
    Accordingly, 39 CFR part 111 is proposed to be amended as follows:

PART 111--[AMENDED]

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

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

    2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:

100 Retail Mail: Letters, Cards, Flats, and Parcels

101 Physical Standards

1.0 Physical Standards for Letters

1.1 Dimensional Standards for Letters

* * * * *
[Renumber item c as item d. Insert new item c as follows:]

    c. Not more than 3.5 ounces.
* * * * *

2.0 Physical Standards for Flats

2.1 General Definition

* * * * *
[Renumber current item c as new item f. Insert new items c through e as 
follows:]
    c. Flexible (see 1.3).

[[Page 56591]]

    d. Rectangular.
    e. Uniformly thick (see 1.4)
* * * * *
[Insert new 2.2 through 2.4 as follows:]

2.2 Flexibility

    Flat-size pieces must meet minimum flexibility criteria. Test 
flexibility as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a central point about an inch off the 
edge of the surface, exerting a steady pressure.
    3. The piece is flexible if it can bend at least 2 inches without 
being damaged.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a central point about an inch off the 
edge of the surface, exerting a steady pressure.
    3. The piece is flexible if it can bend at least 1 inch without 
being damaged.

2.3 Uniform Thickness

    The contents of a flat-size mailpiece must remain uniformly thick 
so that the dimensions of the envelope, wrapper, or sleeve remain 
constant. If the contents are of irregular thickness or significantly 
smaller than the envelope, wrapper, or sleeve, those contents must be 
secured to prevent shifting within the wrapping during processing and 
surrounded with material or padding to ensure that the mailpiece 
remains uniformly thick.

2.4 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 2.1 through 2.3 are 
not eligible for flat-size rates and must pay applicable parcel rates.

3.0 Physical Standards for Parcels

* * * * *
[Change the terminology from ``irregular'' parcels to ``nonmachinable'' 
parcels in the heading and text of 3.5.]
* * * * *

5.0 Additional Physical Standards for Priority Mail

* * * * *

5.2 Two or More Packages

[Revise 5.2 as follows:]

    With the exception of USPS-produced Priority Mail flat-rate 
envelopes or boxes, two or more packages may be mailed as a single 
parcel if they are about the same size or shape, are securely wrapped 
or fastened together, and do not exceed the weight or size limits.
* * * * *

6.0 Additional Physical Standards for First-Class Mail

* * * * *

6.4 Nonmachinable Pieces

6.4.1 Nonmachinable Letters

[Revise 6.4.1 as follows:]

    Letter-size pieces with one or more of the nonmachinable 
characteristics in 1.2 are subject to the applicable postage for a 
flat-size piece, based on weight.
[Revise heading and text of 6.4.2 as follows:]

6.4.2 Nonmachinable Flats

    Flat-size pieces that do not meet the standards in 2.0 are subject 
to the applicable postage for a parcel-size piece, based on weight.
* * * * *
[Delete 8.0, Additional Physical Standards for Bound Printed Matter. 
Renumber 9.0 and 10.0 as new 8.0 and 9.0.]
* * * * *

102 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *
[Revise heading of 3.3 as follows:]

3.3 Mail Markings

[Revise first sentence of 3.3 as follows:]

    Mailers must print the basic required Package Services subclass 
marking--``Parcel Post'' or ``PP,'' ``Media Mail,'' or ``Library 
Mail''--on each piece claimed at the respective rate. * * *
* * * * *

113 Rates and Eligibility

[We provide the proposed rates and fees for all Express Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]

1.0 Express Mail Rates and Fees

* * * * *

1.2 Express Mail Rate Application

[Revise 1.2 as follows:]

    Except under 1.4, Flat-Rate Envelope, Express Mail items are 
charged the 0.5-pound rate for items up to 0.5 pound. Items over 0.5 
pound are rounded up to the next whole pound. For example, if a piece 
weighs 0.25 pound, the weight (postage) increment is 0.5 pound; if a 
piece weighs 0.75 pound, the weight (postage) increment is 1 pound; if 
a piece weighs 1.2 pounds, the weight (postage) increment is 2 pounds.
* * * * *

120 Retail Mail: Priority Mail

123 Rates and Eligibility

[We provide the proposed rates and fees for all Priority Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]

1.0 Priority Mail Rates and Fees

* * * * *

1.2 Priority Mail Rate Application

[Revise 1.2 as follows:]

    Except under 1.3, 1.4, and 1.5, Priority Mail rates are charged per 
pound; any fraction of a pound is rounded up to the next whole pound. 
For example, if a piece weighs 1.2 pounds, the weight (postage) 
increment is 2 pounds. The minimum postage amount per addressed piece 
is the 1-pound rate. The Priority Mail rate up to 1 pound is based on 
weight only; rates for pieces weighing more than 1 pound are based on 
weight and zone. Other charges may apply. See Exhibit 1.2, Priority 
Mail Rates.

1.3 Minimum Rate for Parcels to Zones 1-4

[Revise 1.3 as follows:]

    Parcels addressed for delivery to Zones 1-4 (including Local) that 
weigh less than 20 pounds but measure more than 84 inches (but not more 
than 108 inches) in combined length and girth are charged the 
applicable zone rate for a 20-pound parcel (balloon rate).

[Delete 1.6 and 1.7; renumber 1.4 and 1.5 as new 1.6 and 1.7. Insert 
new 1.4 and 1.5 as follows:]

1.4 Dimensional Weight Rate for Low-Density Parcels to Zones 5-8

    Postage for parcels addressed for delivery to Zones 5-8 and 
exceeding 1 cubic foot (1,728 cubic inches) is charged based on the 
actual weight or the dimensional weight (as calculated in 1.4.1 or 
1.4.2), whichever is greater.

1.4.1 Determining Dimensional Weight for Rectangular Parcels

    Follow these steps to determine the dimensional weight for a 
rectangular parcel:
    a. Measure the length, width, and height in inches. Round off each 
measurement.
    b. Multiply the length by the width by the height.
    c. If the result exceeds 1,728 cubic inches, divide the result by 
194 and round up to the next whole number to

[[Page 56592]]

determine the dimensional weight in pounds.

1.4.2 Determining Dimensional Weight for Nonrectangular Parcels

    Follow these steps to determine the dimensional weight for a 
nonrectangular parcel:
    a. Measure the length, width, and height in inches at their extreme 
dimensions. Round off each measurement.
    b. Multiply the length by the width by the height.
    c. Multiply the result by an adjustment factor of 0.785.
    d. If the result exceeds 1,728 cubic inches, divide the result by 
194 and round up to the next whole number to determine the dimensional 
weight in pounds.
    e. If the dimensional weight exceeds 70 pounds, the parcel pays the 
70-pound rate.

1.5 Flat-Rate Boxes and Envelopes

    Any amount of material may be mailed in a USPS-produced Priority 
Mail flat-rate box or flat-rate envelope. When sealing a flat-rate box 
or flat-rate envelope, the container flaps must be able to close within 
the normal folds. Tape may be applied to the flaps and seams to 
reinforce the container, provided the design of the container is not 
enlarged by opening the sides, and the container is not reconstructed 
in any way.

1.5.1 Flat-Rate Boxes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate box is charged $8.80, 
regardless of the actual weight of the piece or its destination. Only 
USPS-produced flat-rate boxes are eligible for the flat-rate box rate.

1.5.2 Flat-Rate Envelopes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate envelope is charged 
$4.65, regardless of the actual weight of the piece or its destination. 
Only USPS-produced flat-rate envelopes are eligible for the flat-rate 
envelope rate.
* * * * *

130 Retail Mail: First-Class Mail

133 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class Mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 First-Class Mail Rates and Fees

1.1 First-Class Mail Single-Piece Rate Application

* * * * *
[Revise the weight limit in item b as follows:]

    b. The letter rate applies to letter-size pieces that meet the 
standards in 101.1.1 and weigh 3.5 ounces or less, and that are not 
eligible for and claimed at the card rate.

[Insert new items c and d as follows:]

    c. The flat rate applies to flat-size pieces that meet the 
standards in 101.2.1 and letter-size pieces with one or more of the 
nonmachinable characteristics in 101.1.2.
    d. The parcel rate applies to parcel-size pieces under 101.3.0 and 
to flat-size pieces that do not meet the standards in 101.2.0.
* * * * *
[Restructure the rate tables in 1.4 through 1.7 as new 1.4 through 1.8 
and 1.10 to add separate letter, flat, and parcel rate tables. Delete 
current 1.9 and 1.10 for the nonmachinable surcharge. Renumber current 
1.7 as new 1.9.]

1.9 Keys and Identification Devices

[Revise renumbered 1.9 to remove references to nonmachinable surcharge 
in the first three sentences as follows:]

    Keys and identification devices (such as identification cards and 
uncovered identification tags) that weigh 13 ounces or less are 
returned at the applicable single-piece First-Class Mail parcel rate 
plus the fee. Keys and identification devices that weigh more than 13 
ounces but not more than 1 pound are returned at the 1-pound Priority 
Mail rate plus the fee. Keys and identification devices weighing more 
than 1 pound but not more than 2 pounds are mailed at the 2-pound 
Priority Mail rate for zone 4 plus the fee. * * *
* * * * *

2.0 Basic Eligibility Standards for First-Class Mail

2.1 Description of Service

* * * * *

2.1.2 Rate Options

[Revise 2.1.2 to add shape-based reference as follows:]

    First-Class Mail offers shape-based single-piece rates in 1.0.
* * * * *

150 Retail Mail: Parcel Post

153 Rates and Eligibility

[We provide the proposed rates and fees for all Parcel Post services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]

1.0 Parcel Post Rates and Fees

1.1 Rate Eligibility

* * * * *
[Revise item d as follows:]

    d. Parcels that weigh less than 20 pounds but measure more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the applicable rate for a 20-pound parcel (balloon rate).
* * * * *

1.7 Inter-BMC/ASF Machinable Parcel Post

[Revise the last sentence in 1.7 as follows:]

    * * * Parcels that weigh less than 20 pounds but measure more than 
84 inches (but not more than 108 inches) in combined length and girth 
are charged the applicable rate for a 20-pound parcel (balloon rate).

1.8 Inter-BMC/ASF Nonmachinable Parcel Post

[Revise the first three sentences in 1.8 as follows:]

    Rates include the $3.62 nonmachinable surcharge. Regardless of 
weight, a parcel that meets any of the criteria in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay the rate listed in 
Exhibit 1.9. Parcels that weigh less than 20 pounds but measure more 
than 84 inches (but not more than 108 inches) in combined length and 
girth are charged the applicable rate for a 20-pound parcel (balloon 
rate). * * *

1.10 Local and Intra-BMC/ASF Machinable Parcel Post

[Revise the third sentence in 1.10 as follows:]

    * * * Parcels that weigh less than 20 pounds but measure more than 
84 inches (but not more than 108 inches) in combined length and girth 
are charged the applicable rate for a 20-pound parcel (balloon rate). * 
* *

1.11 Local and Intra-BMC/ASF Nonmachinable Parcel Post

[Revise the first three sentences in 1.11 as follows:]

    Rates include the $1.85 nonmachinable surcharge. Regardless of 
weight, a parcel that meets any of the criteria in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay the rates in Exhibit 
1.12. Parcels that weigh less than 20 pounds but measure more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the applicable rate for a 20-pound parcel (balloon rate). * * *

160 Retail Mail: Bound Printed Matter

[Delete 160 in its entirety. These standards are incorporated into 360 
and 460.]
* * * * *

[[Page 56593]]

200 Discount Mail: Letters and Cards

201 Physical Standards

1.0 Physical Standards for Machinable Letters and Cards

1.1 Physical Standards for Machinable Letters

* * * * *

1.1.2 Weight Standards for Machinable Letters

[Revise 1.1.2 to change the maximum weight for First-Class Mail 
machinable letters to 3.5 ounces as follows:]

    The maximum weight for Presorted First-Class Mail machinable 
letters is 3.5 ounces (0.2188 pound). The maximum weight for Standard 
Mail machinable letters is 3.3 ounces (0.2063 pound).
* * * * *

2.0 Physical Standards for Nonmachinable Letters

* * * * *
[Delete 2.2.2. Renumber 2.2.1 as new 2.2 and revise as follows:]

2.2 Additional Criteria for First-Class Mail Nonmachinable Letters

    Letter-size pieces (except pieces eligible for and mailed at card 
rates) with one or more of the nonmachinable characteristics in 2.1 are 
subject to the rates for flat-size pieces

.[Delete 2.3.2. Renumber 2.3.1 as new 2.3 and revise as follows:]

2.3 Additional Criteria for Standard Mail Nonmachinable Letters

    The nonmachinable rates in 243.1.5 apply to Standard Mail letter-
size pieces that weigh 3.3 ounces or less and have one or more of the 
nonmachinable characteristics in 2.1.

3.0 Physical Standards for Automation Letters and Cards

* * * * *

3.3 Weight Standards for First-Class Mail Automation Letters and Cards

[Revise 3.3 to change the weight limit as follows:]

    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound). See 3.13.4 for pieces heavier than 3 ounces.

3.4 Weight Standards for Standard Mail Automation Letters

[Revise 3.4 to remove the reference to automation carrier route mail as 
follows:]

    Maximum weight for Standard Mail mailed at automation and Enhanced 
Carrier Route high density and saturation rates is 3.5 ounces (0.2188 
pound). See 3.13.4 for pieces heavier than 3 ounces.
* * * * *

202 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *

3.3 Placement of Mail Markings

* * * * *
[Revise item b, item b3, and item c to delete ``AUTOCR.'']
* * * * *

3.4 Exceptions to Markings

* * * * *
[Revise item a to remove references to carrier route mail as follows:]

    a. Automation Letters: First-Class Mail and Standard Mail letters 
do not require an ``AUTO'' marking if they bear a delivery point 
barcode in the address block or on an insert visible through a window. 
First-Class Mail letters not marked ``AUTO'' must bear both the 
``Presorted'' or ``PRSRT'' and ``First-Class'' markings. Standard Mail 
letters not marked ``AUTO'' must bear the appropriate basic marking in 
3.3a.

[Revise the second sentence in item b as follows:]

    b. * * * The two-letter rate category code required in the keyline 
on manifest mailing pieces prepared under 705.2.0, Manifest Mailing 
System, meets the requirement for other rate markings.
* * * * *

230 Discount Letters and Cards: First-Class Mail

233 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class Mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

[Revise 1.1 to add ``letter'' as follows:]

    Postage is based on the letter rate that applies to the weight of 
each addressed piece.

1.2 Rate Computation for First-Class Mail Letters

[Revise the first sentence in 1.2 to add ``letter'' as follows:]

    First-Class Mail letter rates are charged per ounce or fraction 
thereof; any fraction of an ounce is considered a whole ounce. * * *
* * * * *
[Delete 1.13, 1.14, and 1.16. Renumber 1.15 as new 1.13. Renumber 1.17 
through 1.19 as new 1.14 through 1.16.]
* * * * *

3.0 Basic Standards for First-Class Mail Letters

3.1 Description of Service

* * * * *

3.1.2 Rate Options

[Revise 3.1.2 as follows:]

    First-Class Mail letters offer shape-based single-piece rates in 
133.1.0 and discounted rates in 1.0 for presorted mailings of 500 or 
more pieces that weigh 3.5 ounces or less.
* * * * *

3.3 Additional Standards for First-Class Mail

[Revise introductory text in 3.3 as follows:]

    All pieces of presorted First-Class Mail letters must:
* * * * *
[Revise the weight in item b as follows:]

    b. Weigh 3.5 ounces or less.
* * * * *

3.6 ZIP Code Accuracy

3.6.1 Basic Standards

[Revise the text in 3.6.1 as follows:]

    The ZIP Code accuracy standard is a means of ensuring that the 
ZIP+4 or 5-digit ZIP Code in the delivery address correctly matches the 
delivery address information. For the purposes of this standard, 
address means a specific address associated with a specific ZIP+4 or 5-
digit ZIP Code. Effective July 2009, mailers of all discount letters, 
flats, and parcels must properly code and match their address lists 
using one of the CASS-certified address matching methods in 708.3.0 and 
use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to 
begin this practice immediately. Addresses used on pieces claiming 
discount rates must meet these requirements:
    a. Each address and associated ZIP+4 or 5-digit ZIP Code used on 
the mailpieces in a mailing must be verified and corrected within 12 
months before the mailing date with one of the USPS-approved methods in 
3.6.2.
    b. If an address used on a mailpiece in a mailing at one class of 
mail and rate is verified and corrected with an approved method, the 
same address may be used during the following 12 months to meet the ZIP 
Code accuracy standard required for mailing at any other class of mail 
and rate.
* * * * *

[[Page 56594]]

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Letters

* * * * *
[Revise heading of 4.3 as follows:]

4.3 Letters With Nonmachinable Characteristics

[Revise 4.3 to delete nonmachinable surcharge as follows:]

    Letters with one or more of the nonmachinable characteristics in 
201.2.1 must pay the flat-size rate. In addition to the standards in 
3.0, Basic Standards for First-Class Mail Letters, all pieces in a 
First-Class Mail Presorted nonmachinable letter-size mailing must be 
marked, sorted, and documented according to 235.5.4, Nonmachinable 
Preparation.
* * * * *
[Revise heading of 5.0 to delete ``Carrier Route'' as follows:]

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Letters

[Revise heading of 5.1 as follows:]

5.1 Basic Standards for Automation First-Class Mail Letters

* * * * *
[Delete item d2. Move text in item d1 into item d.]
* * * * *
[Delete 5.2, Carrier Route Accuracy, and renumber 5.3 and 5.4 as new 
5.2 and 5.3.]
* * * * *

5.2 Maximum Weight for Automation Letters

[Revise renumbered 5.2 to change maximum weight from 3.3 to 3.5 ounces 
as follows:]

    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces 
heavier than 3 ounces).

5.3 Rate Application--Automation Cards and Letters

* * * * *
[Delete item a. Renumber items b through e as new items a through d and 
revise as follows:]

    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for the 5-digit rate is 
optional. Pieces placed in full 3-digit/scheme trays in lieu of 5-
digit/scheme overflow trays under 235.6.6 are eligible for the 5-digit 
rates.
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays under 235.6.6 are eligible for the 3-digit rates.
    c. Groups of fewer than 150 pieces in origin 3-digit/scheme trays 
and all pieces in AADC trays qualify for the AADC rate. Pieces placed 
in mixed AADC trays in lieu of AADC overflow trays under 235.6.6 are 
eligible for the AADC rates.
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 5.3c.
* * * * *
[Delete 5.5 and renumber 5.6 and 5.7 as new 5.4 and 5.5.]
* * * * *
[Delete renumbered 5.4.7, Rural and Highway Contract Routes.]
* * * * *

234 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Letters

* * * * *

2.2 Affixed Postage for Presorted First-Class Mail

* * * * *
[Revise item b to delete the reference to the nonmachinable surcharge 
as follows:]

    b. A precanceled stamp or the full postage at the lowest First-
Class Mail 1-ounce rate applicable to the mailing job, and full postage 
on metered pieces for any additional ounces or extra services.
* * * * *

235 Mail Preparation

1.0 General Definition of Terms

* * * * *

1.2 Definitions of Mailings

* * * * *
[Revise the second sentence in item a to remove ``automation carrier 
route'' as follows:]

    a. * * * Generally, automation and nonautomation letters must be 
prepared as separate mailings. * * *
* * * * *

1.3 Terms for Presort Levels

* * * * *
[Delete item a and renumber items b through k as new items a through 
j.]
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item b as follows:]

    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
[Revise item e by deleting the last sentence.]
* * * * *

2.0 Bundles

* * * * *

2.3 Preparing Bundles

* * * * *
[Revise item a by deleting the first sentence and revising the 
remaining sentence as follows:]

    a. The maximum thickness for bundles is 6 inches.
* * * * *
[Delete item d and renumber items e and f as new items d and e.]
* * * * *

2.8 Labeling Bundles

[Revise the first sentence in 2.8 by deleting the reference to carrier 
route bundles as follows:]

    Unless excepted by standard, the presort level of each bundle must 
be identified either with an optional endorsement line under 708.7.0 or 
with a barcoded pressure-sensitive bundle label. * * *
* * * * *
[Delete 2.10 and 2.11.]
* * * * *

4.0 Tray Labels

* * * * *

4.4 Line 2 (Content Line)

[Revise the table in item 4.4b to delete the entries for ``Carrier 
Route,'' ``Carrier Routes,'' ``General Delivery Unit,'' ``Highway 
Contract Route,'' ``Post Office Box Section,'' and ``Rural Route.'']
* * * * *

5.0 Preparation for Nonautomation Letters

* * * * *
[Delete 5.2, Manual Only Option, and renumber 5.3 and 5.4 as new 5.2 
and 5.3.]

5.2 Machinable Preparation

* * * * *

5.2.2 Traying and Labeling

[Revise the introductory text in 5.2.2 as follows:]

    Instead of preparing overflow AADC trays with fewer than 150 
pieces, mailers may include these pieces in mixed AADC trays.
* * * * *
[Delete item a about labeling the 5-digit tray. Renumber items b 
through d as

[[Page 56595]]

new items a through c. Revise renumbered item a to reflect the 3-digit 
origin tray as follows:]

    a. Separate 3-digit origin trays required for each origin 3-digit 
ZIP Code; one less-than-full tray permitted for each origin ZIP Code; 
labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``FCM LTR 3D MACH.''
* * * * *

5.3 Nonmachinable Preparation

5.3.1 Nonmachinable Bundling

[Revise the second-to-last sentence in 5.3.1 as follows:]

    * * * Smaller volumes are not permitted except for mixed ADC 
bundles. * * *
* * * * *

6.0 Preparation for Automation Rate Letters

* * * * *

6.2 Mailings

* * * * *
[Revise item b as follows:]

    b. First-Class Mail. A single automation rate First-Class Mail 
mailing may include pieces prepared at 5-digit, 3-digit, origin 3-
digit, AADC, and mixed AADC rates.
* * * * *

6.3 Marking

[Revise 6.3 to delete the carrier route references as follows:]

    All automation rate pieces must be marked under 202.3.0, Placement 
and Content of Mail Markings, and 202.4.0, Endorsement Placement. 
Pieces claimed at an automation rate must bear the appropriate class 
marking and, except as provided in 202.3.0, Placement and Content of 
Mail Markings, and 202.4.0, Endorsement Placement, ``AUTO.'' Pieces not 
claimed at an automation rate must not bear ``AUTO'' unless single-
piece rate postage is affixed or the corrective single-piece rate 
marking (``SNGLP'' or ``Single-Piece'') is applied.

6.4 General Preparation

[Revise 6.4 to delete carrier route references and add a new last 
sentence as follows:]

    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 6.6.
* * * * *
[Delete 6.6 and 6.7. Renumber 6.8 through 6.10 as new 6.6 through 6.8.]

6.6 Tray Preparation

[Add introductory statement about overflow trays to 6.6 as follows:]

    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level if it results 
in a full tray. Pieces must be grouped by destination. This option does 
not apply to origin 3-digit trays. When using this option, it must be 
applied to the entire mailing. Preparation sequence, tray size, and 
Line 1 labeling:

[Delete items a through c and renumber items d through g as new items a 
through d. Revise renumbered item a as follows:]

    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed.
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
* * * * *

6.7 Tray Line 2

* * * * *
[Delete items a through c and renumber items d through i as new items a 
through f.]
* * * * *

240 Discount Letters and Cards: Standard Mail

243 Rates and Eligibility

[We provide the proposed rates and fees for all Standard Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]

1.0 Rates and Fees for Standard Mail

* * * * *

1.7 Computing Postage for Standard Mail

* * * * *

1.7.8 Discount for Heavy Automation Letters

[Revise 1.7.8 by deleting the second-to-last sentence about automation 
ECR.]
* * * * *
[Delete 1.7.10.]
* * * * *

3.0 Basic Standards for Standard Mail Letters

* * * * *

3.2 Defining Characteristics

3.2.1 Mailpiece Weight Limit

[Revise 3.2.1 as follows:]

    All Standard Mail pieces must weigh less than 16 ounces. The 
following weight limits also apply to pieces mailed at Standard Mail 
letter rates:
    a. Pieces mailed at machinable and nonmachinable letter rates may 
weigh up to 3.3 ounces. Letter-size pieces weighing more than 3.3 
ounces and prepared as nonmachinable letters are mailable at Not Flat-
Machinable rates (see 443), unless they qualify for automation letter 
rates or Enhanced Carrier Route high-density or saturation rates.
    b. Pieces mailed at automation letter rates or Enhanced Carrier 
Route high-density or saturation rates may weigh up to 3.5 ounces.
* * * * *

3.3 Additional Basic Standards for Standard Mail

* * * * *
[Revise item e by adding a reference to 3.8.1 as follows:]

    e. Each piece must bear the addressee's name and delivery address, 
including the correct ZIP Code or ZIP+4 code (see 3.8.1), unless an 
alternative addressing format is used subject to 602.3.0. Detached 
address labels may be used subject to 602.4.0.
* * * * *

3.8 ZIP Code Accuracy

3.8.1 Basic Standards

[Revise the introductory text and item a in 3.8.1 as follows:]

    The ZIP Code accuracy standard is a means of ensuring that the 
ZIP+4 or 5-digit ZIP Code in the delivery address correctly matches the 
delivery address information. For the purposes of this standard, 
address means a specific address associated with a specific ZIP+4 or 5-
digit ZIP Code. Effective July 2009, mailers of all discount letters, 
flats, and parcels must properly code and match their address lists 
using one of the CASS-certified address matching methods in 708.3.0 and 
use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to 
begin this practice immediately. Except for mail bearing a simplified 
address, addresses used on pieces claiming discount rates must meet 
these requirements:
    a. Each address and associated ZIP+4 or 5-digit ZIP Code used on 
the mailpieces in a mailing must be verified and corrected within 12 
months before the mailing date with one of the USPS-approved methods in 
3.8.2.

[Delete item b and renumber items c and d as new items b and c.]
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

[[Page 56596]]

4.2 Minimum Per Piece Rates

* * * * *
[Revise item b1 by deleting ``(nonletter).'']
* * * * *
[Revise item b3 by changing the base rate for Customized MarketMail as 
follows:]

    3. Pieces mailed as Customized MarketMail under 705.1.0 must pay 
the Regular or Nonprofit Standard Mail 5-digit nonentry rates for Not 
Flat-Machinable pieces and must not exceed 3.3 ounces.

[Revise item c by deleting the last sentence about DDU rates.]
* * * * *
[Delete 4.4, Residual Shape Surcharge.]
[Replace ``presorted'' with ``nonautomation'' throughout 5.0.]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Letters

* * * * *
[Revise heading and text of 5.4 to refer to new AADC and mixed AADC 
rates, instead of basic rates, as follows:]

5.4 Machinable Rate Application

    Machinable letters are subject only to AADC and mixed AADC rates.

5.4.1 AADC Rate

    The AADC rate applies to qualifying letter-size machinable pieces 
(see 201.1.0, Physical Standards for Machinable Letters and Cards) in 
quantities of 150 or more pieces prepared in AADC trays for a single 
AADC (see L801).

5.4.2 Mixed AADC Rate

    The mixed AADC rate applies to qualifying letter-size machinable 
pieces that the mailer prepares in mixed AADC trays, except for pieces 
placed in mixed AADC trays in lieu of overflow AADC trays (see 
245.5.3.2).

[Delete 5.5 and 5.6. Insert new 5.5 as follows:]

5.5 Nonmachinable Rate Application

    Nonmachinable rates in 1.0 apply only to Standard Mail letter-size 
pieces (including card-size pieces) weighing 3.3 ounces or less that 
have one or more of the nonmachinable characteristics in 201.2.1. 
Nonmachinable letter-size pieces weighing more than 3.3 ounces are 
subject to Not Flat-Machinable rates (see 443).

5.5.1 5-Digit Rate

    The 5-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 5-digit ZIP Code and presented in 5-digit trays under 
245.5.0.

5.5.2 3-Digit Rate

    The 3-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 3-digit ZIP Code and presented in 3-digit trays under 
245.5.0.

5.5.3 ADC Rate

    The ADC rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for an ADC and presented in ADC trays under 245.5.0.

5.5.4 Mixed ADC Rate

    The mixed ADC rate applies to letter-size pieces that are subject 
to the nonmachinable rates and prepared in mixed ADC trays.

[Revise heading in 6.0 as follows:]

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Letters

6.1 General Enhanced Carrier Route Standards

6.1.1 Optional Preparation

[Revise 6.1.1 by deleting the last sentence about automation basic 
carrier route.]
* * * * *

6.1.2 Basic Eligibility Standards

* * * * *
[Revise item b by deleting the second sentence about automation basic 
carrier route.]
* * * * *

6.1.3 Maximum Weight for Enhanced Carrier Route Letters

[Revise 6.1.3 by deleting the reference to automation carrier route as 
follows:]

    Maximum weight for Standard Mail Enhanced Carrier Route high 
density and saturation pieces: 3.5 ounces (0.2188 pound) (see 
201.3.13.4, Heavy Letter Mail, for pieces heavier than 3 ounces).
* * * * *

6.2 Carrier Route Accuracy

6.2.1 Basic Standards

* * * * *
[Revise item a by deleting the last sentence.]
* * * * *
[Delete 6.6, Automation ECR Standards.]
* * * * *

7.0 Eligibility Standards for Automation Rate Standard Mail

* * * * *

7.3 Rate Application for Automation Letters

* * * * *
[Revise items a through d to accommodate an option to overflow trays as 
follows:]

    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for that rate is optional. 
Pieces placed in full 3-digit/scheme trays in lieu of 5-digit/scheme 
overflow trays are eligible for 5-digit rates (see 245.7.5).
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays are eligible for 3-digit rates (see 245.7.5).
    c. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in AADC trays qualify for the 
AADC rate. Pieces placed in mixed AADC trays in lieu of AADC overflow 
trays also are eligible for AADC rates (see 245.7.5).
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 7.3c.
* * * * *

245 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.2 Definitions of Mailings

* * * * *
[Delete item b1 about automation ECR. Renumber items b2 through b8 as 
new items b1 through b7.]
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item b as follows:]

    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
[Revise the last sentence in item e as follows:]

    e. * * * When standards require 5-digit/scheme sort, mailers must 
prepare all possible 5-digit scheme trays, then prepare all possible 5-
digit trays.

[Revise item f by adding a new last sentence as follows:]

    f. * * * When standards require 3-digit/scheme sort, mailers must 
prepare all possible 3-digit scheme trays, then prepare all possible 3-
digit trays.
* * * * *

[[Page 56597]]

2.0 Bundles

* * * * *

2.3 Preparing Bundles

* * * * *
[Revise item c by deleting ``and for Standard Mail pieces where the 
mailer has requested ``manual only'' processing.'' Revise item d by 
deleting the second sentence.]
* * * * *
[Revise heading in 5.0 as follows:]

5.0 Preparation for Nonautomation Letters

* * * * *

5.2 Marking

[Revise 5.2 by deleting ``AUTOCR'' in the last sentence.]
* * * * *
[Delete 5.3. Renumber current 5.4 and 5.5 as new 5.3 and 5.4.]

5.3 Machinable Preparation

5.3.1 Machinable Bundling

* * * * *
[Delete item b. Renumber item c as new item b.]
* * * * *

5.3.2 Traying and Labeling

[Replace the first sentence in 5.3.2 with new text as follows:]

    Instead of preparing overflow AADC trays with fewer than 150 
pieces, mailers may include these pieces in mixed AADC trays. * * *
* * * * *
[Delete items a through c. Renumber items d and e as new items a and b 
and revise as follows:]

    a. AADC (required); 150-piece minimum (overflow allowed); labeling: 
* * *
* * * * *
    b. Mixed AADC (required); no minimum; labeling: * * *
* * * * *

5.4 Nonmachinable Preparation

5.4.1 Nonmachinable Bundling

[Revise renumbered 5.4.1 to delete the fourth sentence about manual 
processing.]
* * * * *

5.4.2 Traying and Labeling

[Revise introductory text in 5.4.2 and items a through c as follows:]

    Overflow trays are not allowed. Preparation sequence, tray size, 
and labeling:
    a. 5-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    b. 3-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    c. ADC (required); 150-piece minimum; labeling: * * *
* * * * *

6.0 Preparation for Enhanced Carrier Route Letters

6.1 Basic Standards

[Revise 6.1 by deleting ``(Enhanced Carrier Route automation rate 
mailings must be prepared under 7.0)'' in the introductory text.]
* * * * *

6.4 Carrier Route Bundle Preparation

* * * * *
[Revise item a as follows:]

    a. Mailers must prepare only carrier route bundles, except under 
6.7. Carrier route bundles are not permitted in full carrier route 
trays, except for card-size pieces.
* * * * *
[Revise heading of 6.6 as follows:]

6.6 General Traying and Labeling

* * * * *
[Renumber 6.7 through 6.9 as new 6.8 through 6.10. Insert new 6.7 as 
follows:]

6.7 Traying and Labeling for Enhanced Carrier Route Letters for ZIP 
Codes Identified in the City State Product

    Mailers preparing automation-compatible, barcoded ECR letters that 
weigh up to 3 ounces for ZIP Codes identified with a ``C'' or a ``D'' 
in the Carrier Route indicators in the USPS City State Product must 
make full carrier route and 5-digit carrier routes trays. Except for 
card-size pieces, pieces must not be bundled. Group pieces together by 
carrier route in 5-digit and 3-digit carrier routes trays. If pieces 
for one carrier route do not result in a full tray, mailers must 
combine pieces for more than one route to make full 5-digit carrier 
routes trays, grouping pieces together by carrier route. If pieces for 
multiple carrier routes do not result in a full 5-digit tray, mailers 
must combine pieces for more than one 5-digit ZIP Code to make 3-digit 
carrier routes trays, grouping pieces together by carrier route. If 
pieces fill more than one tray but do not fill an additional tray, 
mailers must place excess pieces in a tray at the next sortation level. 
Preparation sequence, tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: for saturation, ``STD LTR BC WSS,'' followed by route 
type and number; for high density, ``STD LTR BC WSH,'' followed by 
route type and number; for basic, ``STD LTR BC LOT,'' followed by route 
type and number.
    b. 5-digit carrier routes: required; full trays only, no overflow, 
no bundling.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: ``STD LTR 5-D CR-RT BC.''
    c. 3-digit carrier routes: required; bundling required in less than 
full trays.
    1. Line 1: city, state, and 3-digit ZIP Code prefix shown in L002, 
Column A, that corresponds to 3-digit ZIP Code prefix on mail.
    2. Line 2: ``STD LTR 3-D CR-RT BC.''
* * * * *

7.0 Preparation for Automation Rate Letters

* * * * *

7.2 Mailings

[Restructure 7.2 by deleting the introductory text and item b. Make 
item a the new text.]
* * * * *

7.3 Marking

[Revise 7.3 by deleting the parenthetical phrase in the second sentence 
and deleting ``AUTOCR'' in the last sentence.]
* * * * *

7.4 General Preparation

[Revise 7.4 to delete carrier route references and add a new last 
sentence as follows:]

    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 7.5.
* * * * *
[Delete 7.5 and 7.6 about carrier route trays and pieces. Renumber 7.7 
through 7.9 as new 7.5 through 7.7.]

7.5 Tray Preparation

[Add new first, second, and third sentences about overflow trays to 
renumbered 7.5 as follows:]

    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level if it results 
in a full tray. Pieces must be grouped by destination. When using this 
option, it must be applied to the entire mailing. Preparation sequence, 
tray size, and Line 1 labeling:

[Delete items a through c about carrier routes trays. Renumber items d 
through

[[Page 56598]]

g as new items a through d. Revise renumbered item a to require 5-
digit/scheme trays for rate as follows:]

    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed; for Line 1, label as 
follows:
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
* * * * *

7.6 Tray Line 2

* * * * *
[Delete items a through c about carrier routes; renumber items d 
through i as new items a through f.]
* * * * *

246 Enter and Deposit

* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

4.2 Eligibility

[Revise 4.2 to allow pieces placed in AADC trays in lieu of in 3-digit 
trays under 245.7.5 to be eligible for DSCF rates, as follows:]

    Pieces in a mailing that meet the standards in 2.0 and 4.0 are 
eligible for DSCF rates when deposited at a DSCF (or USPS-designated 
facility); addressed for delivery within that SCF's service area; and 
placed in a tray that is labeled to that DSCF, to the AADC that 
includes that DSCF under the preparation option in 245.7.5, or to a 
postal facility within its service area. See 5.2 for additional DSCF 
rate eligibility for letters.
* * * * *

5.0 Destination Delivery Unit (DDU) Entry

* * * * *

5.2 Eligibility

[Revise 5.2 to reorganize text and eliminate the DDU entry discount as 
follows:]

    Letter-size mailpieces are not eligible for a destination delivery 
unit (DDU) discount. Mailers may deposit mail at a DDU under all of the 
following conditions:
    a. Mailers may deposit letter-size pieces that meet the standards 
in 2.0 and 5.0 at a DDU when:
    1. Those pieces are addressed for delivery within that facility's 
service area (enhanced carrier route only).
    2. The pieces are placed in properly prepared and labeled carrier 
route trays or 5-digit carrier routes trays, or on pallets under 
705.8.0.
    3. The pieces are eligible for and claimed at a carrier route rate.
    b. Letter-size mailpieces eligible for DDU entry under 5.2a are 
eligible for DSCF rates under either of these conditions:
    1. The pieces are prepared with simplified addresses under 602.3.2.
    2. Mailers may deposit only one mailing (of fewer than 2,500 
pieces) per day. The annual presort mailing fee must be paid at the 
office of deposit.
* * * * *

300 Discount Mail: Flats

301 Physical Standards

1.0 Physical Standards for Flats

1.1 General Definition of Flat-Size Mail

* * * * *
[Add an exception for Periodicals mail in item b as follows:]

    b. Not more than 15 inches long, or more than 12 inches high, or 
greater than \3/4\ inch thick, except for Periodicals mail under 
707.25.3.

[Replace items c and d with new items c and d as follows:]

    c. Rectangular.
    d. Other size or weight standards may apply to mail claimed at 
certain rates, mail addressed to certain APOs and FPOs, and mail sent 
by the Department of State to U.S. government personnel abroad.
* * * * *
[Insert new 1.3 through 1.6 as follows:]

1.3 Shape

    Each flat-size piece must be rectangular. See 2.0 for additional 
standards by class of mail.

1.4 Flexibility

    Flat-size pieces must meet minimum flexibility criteria. Test 
flexibility as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a central point about an inch off the 
edge of the surface, exerting a steady pressure.
    3. The piece is flexible if it can bend at least 2 inches without 
being damaged.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a central point about an inch off the 
edge of the surface, exerting a steady pressure.
    3. The piece is flexible if it can bend at least 1 inch without 
being damaged.

[Insert new 1.5 as follows:]

1.5 Uniform Thickness

    The contents of a flat-size mailpiece must remain uniformly thick 
so that the dimensions of the envelope, wrapper, or sleeve remain 
constant. If the contents are of irregular thickness or significantly 
smaller than the envelope, wrapper, or sleeve, those contents must be 
secured to prevent shifting within the wrapping during processing and 
surrounded with material or padding to ensure that the mailpiece 
remains uniformly thick.

[Insert new 1.6 as follows:]

1.6 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 1.3 through 1.5 are 
not eligible for flat-size rates and must pay applicable rates as 
follows:
    a. First-Class Mail--parcel rates.
    b. Standard Mail--Not Flat-Machinable or parcel rates.
    c. Bound Printed Matter--parcel rates.

[Revise the heading of 2.0 to delete ``Presorted.'']

2.0 Physical Standards for Nonautomation Flats

2.1 First-Class Mail

[Revise 2.1 as follows:]

    These additional standards apply to First-Class Mail flat-size 
pieces:
    a. First-Class Mail cannot exceed 13 ounces. First-Class Mail 
weighing more than 13 ounces is Priority Mail.
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and pay the applicable parcel rate.
* * * * *

2.2 Standard Mail

2.2.1 Basic Physical Standards

[Revise the introductory text as follows:]

    These additional standards apply to Standard Mail flat-size pieces:
* * * * *
[Delete item b. Insert new item b as follows:]
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels or Not Flat-Machinable pieces and pay 
the parcel or Not Flat-Machinable rates (see 401).
* * * * *
[Delete current Exhibit 2.2.1b.]
* * * * *

2.3 Bound Printed Matter

2.3.1 General Standards

[Delete item c in 2.3.1. Renumber items a and b as new items b and c. 
Revise

[[Page 56599]]

the introductory text and insert new item a as follows:]

    These additional standards apply to Bound Printed Matter:
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and pay the applicable parcel rate.
* * * * *

2.4 Media Mail

* * * * *
[Delete item c. Renumber items a and b as new items b and c. Insert new 
item a as follows:]

    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels.
* * * * *

2.5 Library Mail

* * * * *
[Delete item c. Renumber items a and b as new items b and c. Insert new 
item a as follows:]

    a. Flat-size pieces that do not meet the flexibility standards in 
1.3 through 1.5 must be prepared as parcels.
* * * * *

3.0 Physical Standards for Automation Flats

3.1 Basic Standards for Automation Flats

[Revise 3.1 as follows:]

    Flat-size pieces claimed at automation rates must meet the 
standards in 3.0 and the eligibility standards for the class of mail 
and rate claimed. Pieces prepared with polywrap film must meet the 
standards in 3.4.
* * * * *
[Revise heading of 3.3 as follows:]

3.3 Additional Criteria for Automation Flats

[Revise the title and text of 3.3.1 as follows:]

3.3.1 Address Placement on Folded Pieces

    Mailers must design folded pieces so that the address is in view 
when the final folded edge is at the bottom of the piece and any 
intermediate bound or folded edge is to the right.

3.3.2 Shape and Size

[Revise 3.3.2 to specify the minimum and maximum dimensions as 
follows:]

    Each flat-size piece must be rectangular. The following minimum and 
maximum dimensions apply to First-Class Mail, Standard Mail, 
Periodicals (except under 707.25.3), and Bound Printed Matter pieces:
    1. Minimum height is 5 inches. Maximum height is 12 inches.
    2. Minimum length is 6 inches. Maximum length is 15 inches.
    3. Minimum thickness is 0.009 inch. Maximum thickness is 0.75 inch.
* * * * *
[Revise heading and text of 3.3.4 to delete standards for turning 
ability and add new standards for flexibility as follows:]

3.3.4 Flexibility

    An automation flat-size mailpiece must be flexible (see 1.4) and 
must meet maximum deflection standards. Test deflection as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. The piece is automation-compatible if it does not droop more 
than 4 inches.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. The piece is automation-compatible if it does not droop more 
than 2 inches.

[Delete 3.4 to remove the standards for UFSM 1000 flats. Renumber 3.5 
through 3.9 as new 3.4 through 3.8.]

3.4 Polywrap Coverings

[Revise heading and text of renumbered 3.4.1 as follows:]

3.4.1 Polywrap Films and Similar Coverings

    When mailers use polywrap film or similar material to enclose flat-
size mailpieces claimed at automation rates, the material must meet the 
standards in 3.4. Film approved for use under 3.4.5 must meet the 
specifications in Exhibit 3.4.1 as follows:
    a. Films or similar coverings must meet all eight properties in 
Exhibit 3.4.1.
    b. If the address label is affixed to the outside of the polywrap, 
the haze property (property 2) does not apply.

3.4.2 Wrap Direction and Seam Placement

* * * * *
[Revise item a as follows:]

    a. The wrap direction must be around the longer axis of the 
mailpiece, with the seam parallel to that axis. The longer axis is 
always parallel to the length of the mailpiece.
[Revise the first sentence in item b as follows:]

    b. The preferred seam placement is on the nonaddressed side of the 
mailpiece. * * *

3.4.3 Overhang

[Revise 3.4.3 by deleting item b and restructuring the text as 
follows:]

    For purposes of the polywrap standards for overhang (selvage) only, 
the top edge of the mailpiece is one of the two physically longer edges 
of the piece, regardless of address orientation and whether bound or 
unbound. Any polywrap overhang (selvage) around the four edges of the 
mailpiece (top, bottom, and left and right sides) must meet these 
standards:
    a. When the mailpiece contents are totally positioned at the bottom 
of the polywrap, the overhang must not be more than 0.5 inch at the top 
of the mailpiece.
    b. When the mailpiece contents are totally positioned to the left 
or to the right side of the polywrap, the overhang must not be more 
than 1.5 inches on the opposite side.
    c. The polywrap covering must not be so tight that it bends the 
mailpiece.

[Delete 3.4.4.]
* * * * *

3.8 Uniformity and Exterior Format

3.8.1 General

[Revise 3.8.1 by adding a reference to 1.5 in the first sentence as 
follows:]

    A flat-size mailpiece prepared and claimed at automation rates must 
be uniformly thick (see 1.5). * * *
* * * * *
[Delete 3.8.3 (this information was relocated to 1.5). Renumber 3.8.4 
as new 3.8.3.]
* * * * *

302 Elements on the Face of a Mailpiece

* * * * *

2.0 Placement and Content of Mail Markings

2.1 First-Class Mail and Standard Mail Markings

2.1.1 Placement

* * * * *
[Revise items b and b3 as follows:]

    b. Other Markings. Mailers may place rate-specific markings as 
follows:
* * * * *
    3. If preceded by two asterisks (**), the ``AUTO,'' ``PRESORTED'' 
(or ``PRSRT''), ``CUSTOMIZED MARKETMAIL'' (or ``CUST MKTMAIL'' or 
``CMM''), or ``Single-Piece'' (or ``SNGLP'') markings also may be 
placed on the line directly above or two lines above the address in a 
mailer keyline or a manifest keyline, or it may be placed above the 
address and below the postage

[[Page 56600]]

in an MLOCR ink-jet printed date correction/meter drop shipment line.
* * * * *

2.1.2 Exceptions to Markings

* * * * *
[Delete ``AUTOCR'' in item b as follows:]

    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece. The two-letter rate category code required in the 
keyline on manifest mailing pieces prepared under 705.2.0 meets the 
requirement for other rate markings.
* * * * *

330 Discount Flats: First-Class Mail

333 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class Mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

[Revise 1.1 as follows:]

    Postage is based on the flat-size rate that applies to the weight 
of each addressed piece.
* * * * *

3.0 Rate Eligibility for First-Class Mail Flats

* * * * *

3.6 ZIP Code Accuracy

3.6.1 Basic Standards

[Revise 3.6.1 as follows:]

    The ZIP Code accuracy standard is a means of ensuring that the 
ZIP+4 or 5-digit ZIP Code in the delivery address correctly matches the 
delivery address information. For the purposes of this standard, 
address means a specific address associated with a specific ZIP+4 or 5-
digit ZIP Code. Effective July 2009, mailers of all discount letters, 
flats, and parcels must properly code and match their address lists 
using one of the CASS-certified address matching methods in 708.3.0 and 
use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to 
begin this practice immediately. Addresses used on pieces claiming 
discount rates must meet these requirements:
    a. Each address and associated ZIP+4 or 5-digit ZIP Code used on 
the mailpieces in a mailing must be verified and corrected within 12 
months before the mailing date with one of the USPS-approved methods in 
3.6.2.
    b. If an address used on a mailpiece in a mailing at one class of 
mail and rate is verified and corrected with an approved method, the 
same address may be used during the following 12 months to meet the ZIP 
Code accuracy standard required for mailing at any other class of mail 
and rate.
* * * * *

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Flats

* * * * *
[Revise the heading and text in 4.3 as follows:]

4.3 Nonmachinable Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and pay the applicable parcel rate.
* * * * *

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Flats

* * * * *
[Delete 5.2 and renumber 5.3 through 5.6 as new 5.2 through 5.5.]
* * * * *

340 Discount Flats: Standard Mail

343 Rates and Eligibility

[We provide the proposed rates and fees for all Standard Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]
* * * * *

3.0 Basic Standards for Standard Mail Flats

* * * * *

3.2 Defining Characteristics

[Revise heading and text of 3.2.1 as follows:]

3.2.1 Mailpiece Weight Limit, Shape, and Flexibility

    All Standard Mail pieces must weigh less than 16 ounces. Flat-size 
pieces that do not meet the standards in 301.1.3 through 301.1.5 must 
be prepared as parcels or Not Flat-Machinable pieces and pay parcel or 
Not Flat-Machinable rates (see 401).
* * * * *

3.8 ZIP Code Accuracy

3.8.1 Basic Standards

[Revise the introductory text and item a in 3.8.1 as follows:]

    The ZIP Code accuracy standard is a means of ensuring that the 
ZIP+4 or 5-digit ZIP Code in the delivery address correctly matches the 
delivery address information. For the purposes of this standard, 
address means a specific address associated with a specific ZIP+4 or 5-
digit ZIP Code. Effective July 2009, mailers of all discount letters, 
flats, and parcels must properly code and match their address lists 
using one of the CASS-certified address matching methods in 708.3.0 and 
use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to 
begin this practice immediately. Except for mail bearing a simplified 
address, addresses used on pieces claiming discount rates must meet 
these requirements:
    a. Each address and associated ZIP+4 or 5-digit ZIP Code used on 
the mailpieces in a mailing must be verified and corrected within 12 
months before the mailing date with one of the USPS-approved methods in 
3.8.2.

[Delete item b and renumber items c and d as new items b and c.]
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

4.2 Minimum Per Piece Rates

* * * * *
[Revise item b2 to change the rates for Customized MarketMail to the 
NFM rates as follows:]

    2. Pieces mailed as Customized MarketMail under 705.1.0 must pay 
Regular or Nonprofit Standard Mail 5-digit nonentry rates for Not Flat-
Machinable pieces and must not exceed 3.3 ounces.
* * * * *
[Revise heading and text of 4.4 as follows:]

4.4 Rigid Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels or Not Flat-Machinable pieces and 
pay parcel or Not Flat-Machinable rates (see 401).

[Revise heading of 5.0 as follows:]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Flats

* * * * *
[Replace 5.3 and 5.4 with new 5.3 through 5.6 as follows:]

5.3 5-Digit Rates for Flats

    The 5-digit rate applies to flat-size pieces:
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable; properly placed in a 5-digit/scheme sack 
containing at least 125 pieces or 15 pounds of pieces.
    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 5-digit/scheme bundle of 10 or more pieces, or 15 or more pieces, as 
applicable.
    c. In a 5-digit bundle of 10 or more pieces, or 15 or more pieces, 
as applicable; properly placed in a merged

[[Page 56601]]

5-digit/scheme or 5-digit sack under 705.10.0.

5.4 3-Digit Rates for Flats

    The 3-digit rate applies to flat-size pieces:
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable, or in a 3-digit/scheme bundle of 10 or more 
pieces; properly placed in a 3-digit sack of at least 125 pieces or 15 
pounds of pieces.
    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 3-digit/scheme bundle of 10 or more pieces.

5.5 ADC Rates for Flats

    ADC rates apply to flat-size pieces:
    a. In a 5-digit/scheme, 3-digit/scheme, or ADC bundle of 10 or more 
pieces properly placed in an ADC sack of at least 125 pieces or 15 
pounds of pieces.
    b. When palletized under 705.8.0 and 705.10 through 705.13, in an 
ADC bundle of 10 or more pieces; properly placed on an ADC pallet.

5.6 Mixed ADC Rates for Flats

    Mixed ADC rates apply to flat-size pieces in bundles that do not 
qualify for 5-digit, 3 digit, or ADC rates; placed in mixed ADC sacks 
or on ASF, BMC, or mixed BMC pallets under 705.8.0.
* * * * *

7.0 Additional Eligibility Standards for Automation Standard Mail Flats

* * * * *

7.2 Rate Application

[Revise 7.2 as follows:]

    Automation rates apply to each piece properly sorted into 
qualifying groups:
    a. The 5-digit rate applies to flat-size pieces in a 5-digit/scheme 
bundle of 10 or more pieces, or 15 or more pieces, as applicable.
    b. The 3-digit rate applies to flat-size pieces in a 3-digit/scheme 
bundle of 10 or more pieces.
    c. The ADC rate applies to flat-size pieces in an ADC bundle of 10 
or more pieces.
    d. The mixed ADC rate applies to flat-size pieces in mixed ADC 
bundles (no minimum).
* * * * *

345 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

* * * * *
[Revise the first sentence in items c and K as follows:]

    c. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: * * *
* * * * *
     k. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: * * *
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item f as follows:]

    f. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats, 
then prepare all possible 5-digit bundles and sacks. The 5-digit ZIP 
Codes in each scheme are treated as a single presort destination 
subject to a single minimum volume, with no further separation 
required. Bundles prepared for a 5-digit scheme destination that 
contain pieces for only one of the schemed 5-digit ZIP Codes are still 
considered 5-digit scheme sorted and are labeled accordingly. Label 
mailpieces using an optional endorsement line (OEL) under 708.7.0. 
Place bundles in appropriate containers using the OEL ``label to'' 5-
digit ZIP Code.
* * * * *
[Revise item h by replacing ``Presorted'' with ``nonautomation'' in the 
first sentence and ``irregular parcels'' with ``nonmachinable parcels'' 
in the fifth sentence.]
* * * * *
[Revise item n as follows:]

    n. A 3-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 3-digit scheme bundles for 
those 3-digit ZIP Codes identified in L008. When standards require 3-
digit/scheme sort, mailers must prepare all possible 3-digit scheme 
bundles of flats, then prepare all possible 3-digit bundles. The 3-
digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation by 3-digit ZIP Code required. Bundles prepared for a 3-digit 
scheme destination that contain pieces for only one of the schemed 3-
digit ZIP Codes are still considered 3-digit scheme sorted and are 
labeled accordingly. Label mailpieces using an optional endorsement 
line (OEL) under 708.7.0. Place 3-digit scheme bundles in 3-digit 
through mixed ADC containers, as applicable, using the OEL ``label to'' 
3-digit ZIP Code.
* * * * *
[Revise 5.0 to change ``presorted'' flats to ``nonautomation'' flats 
throughout.]

5.0 Preparation for Nonautomation Flats

5.1 Basic Standards

* * * * *
[Revise item a as follows:]

    a. All pieces must be in the flat-size processing category.

[Revise item b by deleting ``AUTOCR.'']
* * * * *

5.3 Bundling and Labeling

[Add a new first sentence to 5.3 as follows:]

    Only pieces meeting the automation-compatibility criteria in 
301.3.0 may be prepared in 5-digit scheme bundles for those 5-digit ZIP 
Codes identified in L007 and in 3-digit scheme bundles for those 3-
digit ZIP Codes identified in L008. * * *
[Revise items a and b as follows:]

    a. 5-digit/scheme (required), see definition in 1.4f.
    b. 3-digit/scheme (required), see definition in 1.4n.
* * * * *

5.7 Sacking and Labeling

* * * * *
[Revise item a as follows:]

    a. 5-digit/scheme for pieces meeting the automation-compatibility 
criteria in 301.3.0 (required), see definition in 1.4f; 125-piece or 
15-pound minimum; labeling:
    1. Line 1: For 5-digit scheme sacks use L007, Column B. For 5-digit 
sacks, use city, state, and 5-digit ZIP Code destination on pieces. 
(see 4.2 for overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD FLTS 5D SCH NON BC.'' 
For 5-digit sacks, ``STD FLTS 5D NON BC.''
* * * * *

7.0 Preparation for Automation Rate Flats

[Delete 7.4. Renumber 7.5 through 7.9 as new 7.4 through 7.8.]

7.4 Standard Mail Bundle Preparation

7.4.1 Bundling and Labeling

* * * * *
[Revise item a to require 5-digit/scheme preparation as follows:]

    a. 5-digit/scheme (required); see definition in 1.4f * * *
* * * * *
[Delete item b. Renumber item c as new item b and revise to require 3-
digit scheme preparation as follows:]


[[Page 56602]]


    b. 3-digit/scheme (required); see definition in 1.4n * * *
* * * * *
[Delete current item d. Renumber items e and f as new items c and d.]
* * * * *
[Delete renumbered 7.4.2. Renumber 7.4.3 and 7.4.4 as new 7.4.2 and 
7.4.3.]

7.4.3 Sacking and Labeling

* * * * *
[Revise item a in renumbered 7.4.3 as follows:]

    a. 5-digit/scheme (required containing 5-digit scheme bundles only; 
see definition in 1.4f); 125-piece or 15-pound minimum, labeling:
    1. Line 1: For 5-digit scheme sacks use L007, Column B. For 5-digit 
sacks use city, state, and 5-digit ZIP Code on mail (see 4.2 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD FLTS 5D SCH BC.'' For 5-
digit sacks, ``STD FLTS 5D BC.''

[Delete item b. Renumber items c though f as items b through e.]
* * * * *
[Delete current 7.6; renumber current 7.7 through 7.9 as new 7.5 
through 7.7 Revise renumbered 7.5 through 7.7 by replacing 
``presorted'' with ``nonautomation'' throughout.]

7.7 Exception--Automation and Nonautomation Pieces on Pallets

[Replace ``nonletter'' with ``flat-size'' throughout renumbered 7.7.]
* * * * *

360 Discount Flats: Bound Printed Matter

[Incorporate the standards for Bound Printed Matter in 160 into 360. 
Make revisions throughout to change single-piece Bound Printed Matter 
to ``nonpresorted'' Bound Printed Matter and make following additional 
changes:]

363 Rates and Eligibility

[We provide the proposed rates and fees for all Bound Printed Matter 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 Rates and Fees for Bound Printed Matter

* * * * *
[Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Nonpresorted Bound Printed Matter Rates

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must pay the applicable parcel rate based on weight and zone.

[Revise the heading of renumbered 1.4 as follows:]

1.4 Discount Bound Printed Matter Rates

* * * * *
[Insert new 1.4.3 as follows:]

1.4.3 Rigid Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and pay the applicable parcel rate 
based on weight and zone.
* * * * *

3.0 Basic Standards for Bound Printed Matter Flats

* * * * *

3.3 ZIP Code Accuracy

3.3.1 Basic Standards

[Revise the introductory text and item a in 3.3.1 as follows:]

    The ZIP Code accuracy standard is a means of ensuring that the 
ZIP+4 or 5-digit ZIP Code in the delivery address correctly matches the 
delivery address information. For the purposes of this standard, 
address means a specific address associated with a specific ZIP+4 or 5-
digit ZIP Code. Effective July 2009, mailers of all discount letters, 
flats, and parcels must properly code and match their address lists 
using one of the CASS-certified address matching methods in 708.3.0 and 
use the correct ZIP+4 code on each mailpiece. Mailers are encouraged to 
begin this practice immediately. Except for mail bearing a simplified 
address, addresses used on pieces claiming discount rates must meet 
these requirements:
    a. Each address and associated ZIP+4 or 5-digit ZIP Code used on 
the mailpieces in a mailing must be verified and corrected within 12 
months before the mailing date with one of the USPS-approved methods in 
3.3.2.

[Delete item b and renumber items c and d as new items b and c.]
* * * * *

365 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

* * * * *
[Revise the first sentence in items c and h as follows:]

    c. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: * * *
* * * * *
    h. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: * * *
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item e for 5-digit scheme sort as follows:]

    e. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats 
before preparing 5-digit bundles and sacks. The 5-digit ZIP Codes in 
each scheme are treated as a single presort destination subject to a 
single minimum volume, with no further separation required. Bundles 
prepared for a 5-digit scheme destination that contain pieces for only 
one of the schemed 5-digit ZIP Codes are still considered 5-digit 
scheme sorted and are labeled accordingly. Label mailpieces using an 
optional endorsement line (OEL) under 708.7.0. Place bundles in 
appropriate containers using the OEL ``label to'' 5-digit ZIP Code.
* * * * *
[Revise item g for 3-digit scheme sort as follows:]

    g. A 3-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 3-digit scheme bundles for 
those 3-digit ZIP Codes identified in L008. When standards require 3-
digit/scheme sort, mailers must prepare all possible 3-digit scheme 
bundles of flats before preparing 3-digit bundles. The 3-digit ZIP 
Codes in each scheme are treated as a single presort destination 
subject to a single minimum volume, with no further separation by 3-
digit ZIP Code required. Bundles prepared for a 3-digit scheme 
destination that contain pieces for only one of the schemed 3-digit ZIP 
Codes are still considered 3-digit scheme sorted and are labeled 
accordingly. Mailpieces must be labeled using an optional endorsement 
line (OEL) under 708.7.0. Three-digit scheme bundles are placed in 3-
digit through mixed ADC containers, as applicable, using the OEL 
``label to'' 3-digit ZIP Code.
* * * * *

5.0 Preparation for Presorted Flats

* * * * *

5.2 Bundling

* * * * *

[[Page 56603]]

5.2.2 Bundling and Labeling

[Add a new first sentence to 5.2.2 as follows:]

    Only pieces meeting the automation-compatibility criteria in 
301.3.0 may be prepared in 5-digit scheme bundles for those 5-digit ZIP 
Codes identified in L007 and in 3-digit scheme bundles for those 3-
digit ZIP Codes identified in L008. * * *
[Revise items a and b to make 5-digit and 3-digit schemes required as 
follows:]
    a. 5-digit scheme (required); red Label 5 or optional endorsement 
line (OEL). See definition in 1.4e.
    b. 3-digit scheme (required); green Label 3 or OEL. See definition 
in 1.4g.

5.3 Sacking

* * * * *

5.3.5 Sacking and Labeling

* * * * *
[Revise items a and a1 as follows:]

    a. 5-digit/scheme for pieces meeting the automation-compatibility 
criteria in 301.3.0 (see 1.4e) (required), minimum 20 addressed pieces; 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, `` PSVC FLTS 5D SCH NON BC.'' 
For 5-digit sacks, ``PSVC FLTS 5D NON BC.''
* * * * *

7.0 Preparation for Barcoded Flats

* * * * *

7.3 Bundling

* * * * *

7.3.2 Bundle Preparation

* * * * *
[Revise items a and b as follows to make 5-digit and 3-digit schemes 
required. Delete item d and renumber items e and f as new items d and 
e.]

    a. 5-digit/scheme: (required); minimum 10 pieces or 10 pounds, 
maximum weight 20 pounds; optional endorsement line (OEL) required. See 
definition in 1.4e.
    b. 3-digit/scheme (required); minimum 10 pieces or 10 pounds, 
maximum weight 20 pounds; OEL required. See definition in 1.4g.
* * * * *

7.3.3 Scheme Bundle Preparation

[Revise 7.3.3 as follows:]

    See 1.4e and 1.4g for additional standards for pieces prepared in 
scheme bundles.

7.4 Sacking

7.4.1 Sack Preparation and Labeling

* * * * *
[Revise item a as follows. Delete item b and renumber items c through f 
as new items b through e.]

    a. 5-digit/scheme (see 1.4e) (required), minimum 20 addressed 
pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.2 for 
overseas military mail).
    2. Line 2: ``PSVC FLTS 5D SCH BC.''
* * * * *

366 Enter and Deposit

1.0 Presenting a Mailing

[Revise the heading of 1.1 as follows:]

1.1 Verification and Entry--Presorted, Carrier Route, Destination 
Entry, and Barcoded Mailings

* * * * *
[Renumber 1.2 through 1.5 as new 1.3 through 1.6. Insert new 1.2 as 
follows:]

1.2 Verification and Entry--Nonpresorted Mailings

    Nonpresorted rate Bound Printed Matter is not offered at post 
offices, branches, stations, or through Postal Service carriers, except 
under 1.2c and 1.2d. Mailers must deposit Nonpresorted Bound Printed 
Matter as follows:
    a. At the time and place specified by the postmaster at the office 
of mailing.
    b. For metered mail, at other than the licensing post office only 
as permitted under 705.17.0, Metered Mail Drop Shipment.
    c. For permit imprint mail, only at the post office where the 
permit is held (see 604.5.0).
    d. At any post office, branch, or station, or with a Postal Service 
carrier, if the correct postage is applied, including postage for any 
extra service elected.
* * * * *

370 Discount Flats: Media Mail

373 Rates and Eligibility

[We provide the proposed rates and fees for all Media Mail services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]

1.0 Rates and Fees for Media Mail

* * * * *
[Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Rigid Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and pay the applicable parcel rate 
based on weight and entry.
* * * * *

375 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

* * * * *
[Renumber item b as new item c. Insert new item b for 5-digit scheme 
sort as follows:]

    b. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
zones processed by the USPS as a single scheme, as shown in L007.
* * * * *
[Renumber items d and f as new items e and g. Insert new item d for 3-
digit scheme sort as follows:]

    d. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address on all pieces begins with one of the 3-digit ZIP Code zones 
processed by the USPS as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Renumber items c through f as new items e through h. Insert new items 
c and d for 5-digit and 3-digit scheme sorts as follows:]

    c. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats 
before preparing 5-digit bundles and sacks. The 5-digit ZIP Codes in 
each scheme are treated as a single presort destination subject to a 
single minimum volume, with no further separation required. Bundles 
prepared for a 5-digit scheme destination that contain pieces for only 
one of the schemed 5-digit ZIP Codes are still considered 5-digit 
scheme sorted and are labeled accordingly. Label mailpieces using an 
optional endorsement line (OEL) under 708.7.0. Place bundles in 
appropriate containers using the OEL ``label to'' 5-digit ZIP Code.
    d. A 3-digit scheme sort for flats meeting the automation-
compatibility

[[Page 56604]]

standards in 301.3.0 yields 3-digit scheme bundles for those 3-digit 
ZIP Codes identified in L008. When standards require 3-digit/scheme 
sort, mailers must prepare all possible 3-digit scheme bundles of flats 
before preparing 3-digit bundles. The 3-digit ZIP Codes in each scheme 
are treated as a single presort destination subject to a single minimum 
volume, with no further separation by 3-digit ZIP Code required. 
Bundles prepared for a 3-digit scheme destination that contain pieces 
for only one of the schemed 3-digit ZIP Codes are still considered 3-
digit scheme sorted and are labeled accordingly. Mailpieces must be 
labeled using an optional endorsement line (OEL) under 708.7.0. Place 
3-digit scheme bundles in 3-digit through mixed ADC containers, as 
applicable, using the OEL ``label to'' 3-digit ZIP Code.
* * * * *

5.0 Preparation for Presorted Flats

* * * * *

5.2 Bundling

* * * * *

5.2.2 Bundling and Labeling

[Add a new first sentence to 5.2.2 as follows:]

    Only pieces meeting the automation-compatibility criteria in 
301.3.0 may be prepared in 5-digit scheme bundles for those 5-digit ZIP 
Codes identified in L007 and in 3-digit scheme bundles for those 3-
digit ZIP Codes identified in L008. * * *

[Revise items a and b to make 5-digit and 3-digit schemes required as 
follows:]

    a. 5-digit/scheme (optional, but required for 5-digit rate); red 
Label 5 or optional endorsement line (OEL). See definition in 1.4c.
    b. 3-digit/scheme (required); green Label 3 or OEL. See definition 
in 1.4d.

5.3 Sacking

* * * * *

5.3.2 Sacking and Labeling

* * * * *
[Revise item a as follows:]

    a. 5-digit/scheme for pieces meeting the automation-compatibility 
criteria in 301.3.0 (see 1.4c) (optional, but required for 5-digit 
rate), minimum 10 addressed pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, `` PSVC FLTS 5D SCH NON BC.'' 
For 5-digit sacks, ``PSVC FLTS 5D NON BC.''
* * * * *

380 Discount Flats: Library Mail

383 Rates and Eligibility

[We provide the proposed rates and fees for all Library Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]

1.0 Rates and Fees for Library Mail

* * * * *
[Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Rigid Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and pay the applicable parcel rate 
based on weight and entry.
* * * * *

385 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

* * * * *
[Renumber item b as new item c. Insert new item b for 5-digit scheme 
sort as follows:]

    b. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
zones processed by the USPS as a single scheme, as shown in L007.
* * * * *
[Renumber items d and f as new items e and g. Insert new item d for 3-
digit scheme sort as follows:]

    d. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address on all pieces begins with one of the 3-digit ZIP Code zones 
processed by the USPS as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Renumber items c through f as new items e through h. Insert new items 
c and d for 5-digit and 3-digit scheme sorts as follows:]

    c. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats 
before preparing 5-digit bundles and sacks. The 5-digit ZIP Codes in 
each scheme are treated as a single presort destination subject to a 
single minimum volume, with no further separation required. Bundles 
prepared for a 5-digit scheme destination that contain pieces for only 
one of the schemed 5-digit ZIP Codes are still considered 5-digit 
scheme sorted and are labeled accordingly. Label mailpieces using an 
optional endorsement line (OEL) under 708.7.0. Place bundles in 
appropriate containers using the OEL ``label to'' 5-digit ZIP Code.
    d. A 3-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 3-digit scheme bundles for 
those 3-digit ZIP Codes identified in L008. When standards require 3-
digit/scheme sort, mailers must prepare all possible 3-digit scheme 
bundles of flats before preparing 3-digit bundles. The 3-digit ZIP 
Codes in each scheme are treated as a single presort destination 
subject to a single minimum volume, with no further separation by 3-
digit ZIP Code required. Bundles prepared for a 3-digit scheme 
destination that contain pieces for only one of the schemed 3-digit ZIP 
Codes are still considered 3-digit scheme sorted and are labeled 
accordingly. Mailpieces must be labeled using an optional endorsement 
line (OEL) under 708.7.0. Place 3-digit scheme bundles in 3-digit 
through mixed ADC containers, as applicable, using the OEL ``label to'' 
3-digit ZIP Code.
* * * * *

5.0 Preparation for Presorted Flats

* * * * *

5.2 Bundling

* * * * *

5.2.2 Bundling and Labeling

[Add a new first sentence to 5.2.2 as follows:]

    Only pieces meeting the automation-compatibility criteria in 
301.3.0 may be prepared in 5-digit scheme bundles for those 5-digit ZIP 
Codes identified in L007 and in 3-digit scheme bundles for those 3-
digit ZIP Codes identified in L008. * * *

[Revise items a and b as follows to make 5-digit and 3-digit schemes 
required:]

    a. 5-digit scheme (optional, but required for 5-digit rate); red 
Label 5 or optional endorsement line (OEL). See definition in 1.4c.

[[Page 56605]]

    b. 3-digit scheme (required); green Label 3 or OEL. See definition 
in 1.4d.

5.3 Sacking

* * * * *

5.3.2 Sacking and Labeling

* * * * *
[Revise items a and a1 as follows:]

    a. 5-digit/scheme for pieces meeting the automation-compatibility 
criteria in 301.3.0 (see 1.4c) (optional, but required for 5-digit 
rate), minimum 10 addressed pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, `` PSVC FLTS 5D SCH NON BC.'' 
For 5-digit sacks, `` PSVC FLTS 5D NON BC.''
* * * * *

400 Discount Mail: Parcels

[Change the terminology from ``irregular'' parcels to ``nonmachinable'' 
parcels and from ``IRREG'' to ``NON MACH'' throughout 400.]

401 Physical Standards

1.0 Physical Standards for Parcels

[Revise the heading of 1.1 as follows:]

1.1 Processing Categories

[Revise the first sentence of 1.1 as follows:]

    USPS categorizes parcels into one of three mail processing 
categories: machinable, nonmachinable, or outside parcel. * * *
* * * * *

1.5 Machinable Parcels

* * * * *
[Delete 1.5.4, Exclusions.]
* * * * *

2.0 Additional Physical Standards by Class of Mail

2.1 First-Class Mail Parcels

* * * * *
[Delete current 2.1.2 and replace with new 2.1.2 as follows:]

2.1.2 Surcharge

    Unless prepared in 5-digit sacks or paid at a single-piece rate, 
presorted parcels are subject to a $0.05 surcharge if any of the 
following characteristics apply:
    a. The parcels do not bear a UCC/EAN 128 or POSTNET barcode.
    b. The parcels weigh less than 2 ounces.
    c. The parcels are irregularly shaped, such as rolls, tubes, and 
triangles.

[Revise the heading of 2.2 as follows:]

2.2 Standard Mail Parcels and Not Flat-Machinable Pieces

[Revise heading and text of 2.2.1 as follows:]

2.2.1 Additional Physical Standards

    Each piece must weigh less than 16 ounces.

[Revise heading and text of 2.2.2 as follows:]

2.2.2 Not Flat-Machinable Pieces

    Rectangular Standard Mail pieces with any of the following 
characteristics must be prepared as Not Flat-Machinable (NFM) pieces or 
as parcels:
    a. Rigid pieces that do not meet the flexibility criteria in 
301.1.4.
    b. Pieces over 15 inches long, up to a maximum of 15\3/4\ inches 
long.
    c. Pieces over 3/4 inch thick, up to a maximum of 1\1/4\ inches 
thick.
    d. Pieces less than either 5 inches high or 6 inches long (but no 
less than 4 inches high or 4 inches long) and between \1/4\ and 1\1/4\ 
inches thick.
    e. Nonmachinable letter-size pieces weighing more than 3.3 ounces, 
unless they qualify to be mailed as flats.

[Delete current 2.2.3 and replace with new 2.2.3 as follows:]

2.2.3 Surcharge

    Unless prepared in 5-digit/scheme containers, Standard Mail parcels 
and Not Flat-Machinable pieces are subject to a $0.05 surcharge if:
    a. The machinable or nonmachinable parcels do not bear a UCC/EAN 
128 barcode.
    b. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN 128 barcode.
    c. The Not Flat-Machinable pieces weigh less than 6 ounces and do 
not bear a UCC/EAN 128 or POSTNET barcode.

2.3 Parcel Post

2.3.1 General Standards

* * * * *
[Revise item b as follows:]

    b. An item weighing less than 20 pounds but measuring more than 84 
inches (but not more than 108 inches) in combined length and girth is 
charged the rate for a 20-pound parcel for the zone to which it is 
addressed (balloon rate).
* * * * *

402 Elements on the Face of a Mailpiece

* * * * *

2.0 Placement and Content of Markings

2.1 First-Class Mail and Standard Mail Markings

2.1.1 Placement

* * * * *
[Renumber item c as new item d. Insert new item c as follows:]

    c. Mark each NFM ``NOT FLAT-MACHINABLE'' or ``NFM'' in capital 
letters, either by including the marking in the optional endorsement 
line or by placing the marking immediately to the left of or below the 
postage area. See 402.2.1.1.
* * * * *

430 Discount Parcels: First-Class Mail

433 Rates and Eligibility

[We provide the proposed rates and fees for all First-Class Mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 Rates and Fees for First-Class Mail

* * * * *
[Revise 1.4 to change heading and text describing the surcharge as 
follows:]

1.4 Surcharge

    Unless prepared in 5-digit/scheme sacks or paid at the single-piece 
rates, presorted parcels are subject to a $0.05 surcharge if any of the 
following characteristics apply:
    a. The parcels weigh less than 2 ounces.
    b. The parcels do not bear a UCC/EAN 128 or POSTNET barcode.
    c. The parcels are irregularly shaped, such as rolls, tubes, and 
triangles.
* * * * *
[Insert new 4.0 to describe Presorted parcel rates as follows:]

4.0 Rate Eligibility for Presorted First-Class Mail Parcels

4.1 5-Digit Rate

    The 5-digit rate applies to presorted parcels in a 5-digit/scheme 
sack containing at least 10 pounds of parcels.

4.2 3-Digit Rate

    The 3-digit rate applies to presorted parcels in a 3-digit sack 
containing at least 10 pounds of parcels.

4.3 ADC Rate

    The ADC rate applies to presorted parcels in an ADC sack containing 
at least 10 pounds of parcels.

4.4 Single-Piece Rate

    The single-piece rate applies to presorted parcels in a mixed ADC 
sack.

[[Page 56606]]

434 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Parcels

* * * * *

2.2 Affixed Postage for Presorted First-Class Mail

* * * * *
[Revise item b to remove ``nonmachinable surcharge'' as follows:]

    b. A precanceled stamp or the full postage at the lowest First-
Class Mail 1-ounce rate applicable to the mailing job, and full postage 
on metered pieces for additional ounce(s) or extra services.
* * * * *

435 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.2 Definition of Mailings

* * * * *
[Delete item b. Move item a into introductory text.]
* * * * *

1.3 Terms for Presort Levels

* * * * *
[Renumber items a through e as new items b through f. Insert new item a 
as follows:]

    a. 5-digit scheme for First-Class Mail parcels: the ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
zones processed by the USPS as a single scheme, as shown in L606.
* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item d as follows:]

    d. The required quantity (for example, ``required at 10 pieces'') 
means that the unit must be prepared for the corresponding presort 
level whenever the specified quantity of mail is reached or exceeded. 
Smaller quantities may be prepared only if permitted by the standards 
for each rate.
* * * * *
[Delete item g. Renumber item h as new item g and revise as follows:]

    g. A ``logical'' presort destination represents the total number of 
pieces that are eligible for a specific presort level based on the 
required sortation, but which might not be contained in a single 
container (sack or pallet) due to applicable preparation requirements 
or the size of the individual pieces.
* * * * *
[Delete 2.0, Bundles, and renumber 3.0 through 5.0 as new 2.0 through 
4.0.]
* * * * *

3.0 Sack Labels

* * * * *

3.4 Line 2 (Content Line)

[Revise the table in renumbered 3.4 to delete the entries for ``General 
Delivery Unit,'' ``Highway Contract Route,'' ``Post Office Box 
Section'', and ``Rural Route.'']
* * * * *
[Revise the heading in renumbered 4.0 as follows:]

4.0 Preparation for Presorted Parcels

* * * * *
[Revise heading and text in 4.3 to remove bundling requirement as 
follows:]

4.3 Bundling

    Bundling is not permitted.
* * * * *

4.4 Sacking and Labeling

* * * * *
[Revise item a as follows:]

    a. 5-digit/scheme (required; see definition in 1.3a); 10-pound 
minimum, labeling:
    1. Line 1: For 5-digit scheme sacks use L606, Column B. For 5-digit 
sacks use city, state, and 5-digit ZIP Code on mail (see 4.3c for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``FCM PARCELS 5D SCH.'' For 5-
digit sacks, ``FCM PARCELS 5D.''
* * * * *

440 Discount Parcels: Standard Mail

443 Rates and Eligibility

[We provide the proposed rates and fees for all Standard Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]
* * * * *

4.0 Rate Eligibility for Standard Mail

4.1 General Information

[Revise 4.1 by deleting reference to barcode discount and reorganizing 
text as follows:]

    All Standard Mail rates are Presorted rates. These rates apply to 
mailings meeting the basic standards in 2.0 through 4.0 and the 
corresponding standards for Presorted rates under 5.0 or Enhanced 
Carrier Route rates under 6.0. Destination entry discount rates are 
available under 446.2.0 through 446.5.0 in Enter and Deposit. Pieces 
are subject to either a single minimum per piece rate or a combined 
piece/pound rate, depending on the weight of the individual pieces in 
the mailing under 4.2 or 4.3. Only organizations authorized by the USPS 
under 703.1.0 may mail at Nonprofit rates.

4.2 Minimum Per Piece Rates

* * * * *
[Revise item b by deleting the text that does not apply to parcels as 
follows:]

    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a parcel based on the standards in 401, Physical 
Standards.

[Revise item c by deleting the text that does not apply to parcels and 
by adding 5-digit rate mail as eligible for DDU rates as follows:]

    c. Individual Rates. There are separate minimum per piece rates for 
each subclass (Regular, Enhanced Carrier Route, Nonprofit, and 
Nonprofit Enhanced Carrier Route) and within each subclass for the 
level of presort within each mailing. Mailers may claim discounted 
rates for destination entry mailings under 446.2.0 through 446.5.0 in 
Enter and Deposit. DDU rates are available for parcels and Not Flat-
Machinable pieces entered at 5-digit, Enhanced Carrier Route, or 
Nonprofit Enhanced Carrier Route rates. See 1.0, Rates and Fees for 
Standard Mail, for individual per piece rates.
* * * * *
[Revise the heading and text of 4.4 as follows:]

4.4 Surcharge

    Unless prepared in 5-digit/scheme containers, Standard Mail parcels 
and Not Flat-Machinable pieces are subject to a $0.05 surcharge if:
    a. The machinable or nonmachinable parcels do not bear a UCC/EAN 
128 barcode.
    b. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN 128 barcode.
    c. The Not Flat-Machinable pieces weigh less than 6 ounces and do 
not bear a UCC/EAN 128 or POSTNET barcode.

[Delete 4.5 and renumber 4.6 as new 4.5.]

4.5 Extra Services for Standard Mail

* * * * *

4.5.2 Eligible Matter

[Revise renumbered 4.5.2 as follows:]

    Extra services may be used only with pieces mailed at machinable or 
nonmachinable parcel rates.

4.5.3 Ineligible Matter

* * * * *

[[Page 56607]]

[Revise item a as follows:]

    a. Pieces entered as letters, flats, or NFMs.
* * * * *
[Revise the heading of 5.0 as follows:]

5.0 Additional Eligibility Standards for Presorted Standard Mail Pieces

* * * * *

5.2 Rate Application

[Revise 5.2 to add Not Flat-Machinable pieces and to note separate 
rates as follows:]

    Rates for Regular and Nonprofit Standard Mail apply separately to 
machinable parcels, nonmachinable parcels, and Not Flat-Machinable 
pieces that meet the eligibility standards in 2.0 through 4.0 and the 
preparation standards in 445.5.0, Preparation, or 705.8.0, Preparation 
for Pallets.

[Delete 5.3 through 5.5. Insert new 5.3 for machinable parcel rates as 
follows:]

5.3 Rates for Machinable Parcels

5.3.1 5-Digit Rate

    The 5-digit rate applies to qualifying machinable parcels 
presented:
    a. In a 5-digit/scheme (L606) sack containing at least 10 pounds of 
parcels.
    b. On a 5-digit pallet, according to standards in 705.8.10.
    c. As one or more parcels that mailers drop ship to a DDU under 
446.5.2.

5.3.2 BMC Rate

    The BMC rate applies to qualifying machinable parcels presented:
    a. In an ASF or BMC sack containing at least 10 pounds of parcels.
    b. On an ASF or BMC pallet, according to standards in 705.8.10.

5.3.3 Mixed BMC Rate

    The mixed BMC rate applies to machinable parcels that are not 
eligible for 5-digit or BMC rates. Place machinable parcels at mixed 
BMC rates in mixed BMC sacks under 445.5.3.2 or on mixed BMC pallets 
under 705.8.10.

[Insert new 5.4 for nonmachinable parcel rates as follows:]

5.4 Rates for Nonmachinable Parcels

5.4.1 5-Digit Rate

    The 5-digit rate applies to nonmachinable parcels (see 401.1.6) 
presented:
    a. In a 5-digit/scheme (L606) sack containing at least 10 pounds of 
parcels.
    b. On a 5-digit/scheme (L606) pallet, according to 705.8.10.
    c. As one or more parcels that mailers drop ship to a DDU under 
446.5.2.

5.4.2 3-Digit Rate

    The 3-digit rate applies to nonmachinable parcels (see 401.1.6) 
presented:
    a. In a 3-digit sack containing at least 10 pounds of parcels.
    b. On a 3-digit pallet, according to 705.8.10.

5.4.3 ADC Rate

    The ADC rate applies to nonmachinable parcels (see 401.1.6) 
presented:
    a. In an ADC sack containing at least 10 pounds of parcels.
    b. On an ADC pallet, according to 705.8.10.4.

5.4.4 Mixed ADC Rate

    The mixed ADC rate applies to nonmachinable parcels (see 401.1.6) 
in mixed ADC sacks.

[Insert new 5.5 for Not Flat-Machinable rates as follows:]

5.5 Rates for Not Flat-Machinable (NFM) Pieces

5.5.1 5-Digit Rate

    The 5-digit rate applies to NFM pieces presented:
    a. In a 5-digit/scheme sack of 10 or more pounds of pieces 
(bundling not permitted).
    b. In 5-digit bundles of five or more pieces on pallets or in 
pallet boxes under 705.8.0.
    c. As one or more pieces that mailers drop ship to a DDU under 
446.5.0.

5.5.2 3-Digit Rates

    The 3-digit rate applies to NFM pieces in 3-digit containers.

5.5.3 ADC Rate

    The ADC rate applies to NFM pieces in ADC or ASF/BMC containers.

5.5.4 Mixed ADC Rate

    The mixed ADC rate applies to NFM pieces in mixed ADC or mixed BMC 
containers.
* * * * *

445 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.4 Preparation Definitions and Instructions

* * * * *
[Revise item c to require 5-digit/scheme sort for rate eligibility as 
follows:]

    c. A 5-digit/scheme sort for Standard Mail parcels yields 5-digit 
scheme sacks or pallets for those 5-digit ZIP Codes listed in L606 and 
5-digit sacks or pallets for other ZIP Codes. When standards require 5-
digit/scheme sort, mailers must prepare all possible 5-digit scheme 
sacks, then prepare all possible 5-digit sacks. The 5-digit ZIP Codes 
in each scheme are treated as a single presort destination subject to a 
single minimum volume (if required), with no further separation by 5-
digit ZIP Code required. Sacks or pallets prepared for a 5-digit scheme 
destination that contain pieces for only one of the schemed 5-digit ZIP 
Codes are still considered 5-digit scheme sorted and are labeled 
accordingly.
* * * * *

2.0 Bundles

2.1 Definition of a Bundle

[Add a new fifth sentence to restrict bundling as follows:]

    * * * Bundling under 445 is allowed only for carrier route bundles 
of parcels and 5-digit bundles of Not Flat-Machinable pieces placed on 
pallets or in pallet boxes (see 6.0). * * *
* * * * *

5.0 Preparation for Presorted Parcels

* * * * *

5.3 Preparation of Machinable Parcels

5.3.1 5-Digit Sacks

[Revise 5.3.1 to change the preparation of 5-digit/scheme sacks 
containing both machinable and nonmachinable parcels (or also 
containing Not Flat-Machinable pieces) to be that for machinable 
parcels, and to require 5-digit scheme sorting when claiming 5-digit 
rates, as follows:]

    Mailers must prepare all possible 5-digit/scheme sacks in a mailing 
that includes pieces claimed at the 5-digit rate. If mailers do not 
prepare all 5-digit/scheme sacks when there are 10 pounds or more of 
mail for a destination, they may not claim the 5-digit rate for any 
part of the mailing. Mailers choosing to combine the preparation of 
either nonmachinable parcels or Not Flat-Machinable pieces (see 
401.2.2.3) weighing 6 ounces or more with machinable parcels placed in 
5-digit/scheme sacks must prepare those sacks under 5.3.2. Mailers 
choosing to combine the preparation of Not Flat-Machinable pieces 
weighing 6 ounces or more with machinable parcels placed in ASF, BMC, 
or mixed BMC sacks must prepare the sacks under 5.3.2. There is no 
minimum for parcels prepared in 5-digit/scheme sacks entered at a DDU.

5.3.2 Sacking and Labeling

* * * * *
[Revise item a to add the requirement of 5-digit/scheme sorting for 
pieces claiming the 5-digit rate as follows:]


[[Page 56608]]


    a. 5-digit/scheme (optional, but required for 5-digit rate), see 
definition in 1.4c; 10-pound minimum except under 5.3.1; labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: ``STD MACH 5D SCHEME'' or ``STD MACH 5D SCH.''

[Delete item b; renumber items c through e as new items b through d.]
* * * * *

5.4 Preparation of Nonmachinable Parcels

[Delete 5.4.1 and 5.4.2; renumber 5.4.3 through 5.4.8 as new 5.4.1 
through 5.4.6. Revise heading and text of renumbered 5.4.1 to restrict 
bundling of nonmachinable parcels as follows:]

5.4.1 Bundling

    Bundling is not permitted, except for bundles of carrier route 
parcels under 6.0.
* * * * *

5.4.3 Loose Packing

[Revise renumbered 5.4.3 to delete the advance approval requirement to 
loose pack as follows:]

    When placing nonmachinable parcels in sacks, mailers must face and 
pack the parcels to maintain their orientation in transit.

5.4.4 Required Sacking

[Revise renumbered 5.4.4 to change the minimum quantity per sack from 
15 pounds to 10 pounds and to add NFMs as follows:]

    Mailers must prepare a sack when the quantity of mail for a 
required presort destination reaches 10 pounds of parcels. There is no 
minimum for parcels prepared in 5-digit/scheme sacks entered at a DDU. 
Mailers choosing to combine the preparation of nonmachinable parcels 
with machinable parcels placed in 5-digit/scheme sacks must prepare 
those sacks under 5.3.2. Mailers may not prepare sacks containing 
nonmachinable and machinable parcels to other presort levels. Mailers 
may combine nonmachinable parcels with Not Flat-Machinable pieces 
weighing less than 6 ounces in sacks under 5.4.6.
* * * * *

5.4.6 Sacking and Labeling

* * * * *
[Revise item a to require 5-digit/scheme sacks and to change minimum 
quantity to 10 pounds as follows:]

    a. 5-digit/scheme (optional, but required for 5-digit rate), 10-
pound minimum, except when entered at a DDU; labeling:
    1. For 5-digit scheme sacks, use L606, Column B. For 5-digit sacks, 
use city, state, and 5-digit ZIP Code on mail (see 4.3 for overseas 
military mail).
    2. For Line 2, ``STD NONMACH 5D SCH'' or ``STD NONMACH 5D.''

[Delete item b. Renumber item c as new item b and revise as follows:]

    b. 3-digit (required); 10-pound minimum; for nonmachinable parcels 
only:
    1. For Line 1, L002, Column A.
    2. For Line 2, ``STD NONMACH 3D.''

[Delete item d and renumber items e and f as new items c and d. Revise 
new item c as follows:]

    c. ADC (required); 10-pound minimum; labeling:
    1. Line 1: L603, Column B.
    2. Line 2: ``STD NON MACH ADC.''

[Revise new item d as follows:]

    d. Mixed ADC (required); no minimum; labeling:
    1. Line 1: L604, Column B.
    2. Line 2: ``STD NON MACH WKG.''

[Renumber 6.0 as 7.0. Insert new 6.0 for preparation of NFM pieces as 
follows:]

6.0 Preparation for Not Flat-Machinable Pieces

6.1 Basic Standards

    All mailings at Regular Standard Mail and Nonprofit Standard Mail 
Presorted rates for NFM pieces are subject to the general preparation 
standards in 1.0 through 4.0. Prepare NFM pieces (see 301.2.2.3) 
according to the standards in 6.0 unless commingled with parcels under 
445.5.3. Mark NFM pieces according to the standards in 402.2.1.1.

6.2 Bundling

    Mailers may make 5-digit bundles of at least five pieces when 
placed on pallets or in pallet boxes under 705.8.0. No other NFM 
bundling is permitted.

6.3 Sacking and Labeling

6.3.1 General

    Mailers may combine NFM pieces with parcels in 5-digit/scheme sacks 
under 445.5.3. See 6.3.2 for NFM pieces that weigh less than 6 ounces; 
see 6.3.3 for NFM pieces that weigh 6 ounces or more.

6.3.2 NFM Pieces Weighing Less Than 6 Ounces

    Preparation sequence, sack size, and labeling for sacks of NFM 
pieces that weigh less than 6 ounces:
    a. 5-digit/scheme (optional, but required for 5-digit rate); see 
definition in 445.1.4c; 10-pound minimum, except when dropshipped to a 
DDU (no minimum); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: ``STD NFM 5D SCH.''
    b. 3-digit (optional, but required for 3-digit rate); 10-pound 
minimum; labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NFM 3D.''
    c. ADC (required); 10-pound minimum; labeling:
    1. Line 1: Use L004, Column B.
    2. Line 2: ``STD NFM ADC.''
    d. Mixed ADC (required); no minimum; labeling:
    1. Line 1: Use L009, Column B.
    2. Line 2: ``STD NFM WKG.''

6.3.3 NFM Pieces Weighing 6 Ounces or More

    Preparation sequence, sack size, and labeling for sacks of NFM 
pieces that weigh less than 6 ounces:
    a. 5-digit/scheme (required); see definition in 445.1.4c; 10-pound 
minimum, except when dropshipped to a DDU (no minimum); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: ``STD NFM 5D SCH.''
    b. ASF (optional), permitted only for mail deposited at an ASF to 
claim DBMC rate; 10-pound minimum; labeling:
    1. Line 1: L602, Column B. DBMC rate eligibility determined by 
Exhibit 446.3.1, BMC/ASF--DMBC Rate Eligibility.
    2. Line 2: ``STD NFM ASF.''
    c. BMC (required); 10-pound minimum; labeling:
    1. Line 1: L601, Column B. DBMC rate eligibility determined by 
Exhibit 446.3.1, BMC/ASF--DMBC Rate Eligibility.
    2. Line 2: ``STD NFM BMC.''
    d. Mixed BMC (required); no minimum; labeling:
    1. Line 1: ``MXD'' followed by L601, Column B information for BMC 
serving 3-digit ZIP Code prefix of entry post office.
    2. Line 2: ``STD NFM WKG.''
* * * * *

446 Enter and Deposit

* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

[[Page 56609]]

4.2 Eligibility

* * * * *
[Insert new item c as follows:]

    c. When prepared and deposited under 705.6.3.
* * * * *

5.0 Destination Delivery Unit (DDU) Entry

* * * * *

5.2 Eligibility

[Revise 5.2 to allow 5-digit sacks of parcels to be entered at DDUs and 
to add ``Not Flat-Machinable'' pieces as follows:]

    Pieces in a mailing that meet the standards in 2.0 and 5.0 are 
eligible for the DDU rate when deposited at a DDU, addressed for 
delivery within that facility's service area, and prepared as follows:
    a. Parcels in carrier route bundles sorted to carrier route sacks 
(nonmachinable parcels), and otherwise eligible for and claimed at a 
carrier route rate.
    b. One or more parcels or Not Flat-Machinable pieces in 5-digit 
containers.

450 Discount Parcels: Parcel Post

453 Rates and Eligibility

[We provide the proposed rates and fees for all Parcel Post services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]
* * * * *

3.0 Rate Eligibility Standards for Parcel Post

3.1 Parcel Post and Parcel Select Rate Eligibility

* * * * *
[Revise item f as follows:]

    f. The barcode discount applies to Inter-BMC/ASF and Intra-BMC/ASF 
Parcel Post machinable parcels (401.1.5) that bear a barcode under 
708.5.0 for the ZIP Code of the delivery address and are part of a 
mailing of 50 or more Parcel Post rate pieces.
* * * * *
[Revise item h as follows:]

    h. Items weighing less than 20 pounds but measuring more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the rate for a 20-pound parcel for the zone to which it is 
addressed (balloon rate).
* * * * *

455 Mail Preparation

* * * * *

5.0 Standards for Barcode Discounts 5.1 Standards for Barcoded Mail

[Revise 5.1 as follows:]

    The barcode discount applies to Inter-BMC/ASF and Intra-BMC/ASF 
Parcel Post machinable parcels (401.1.5) that bear a barcode under 
708.5.0 for the ZIP Code of the delivery address and are part of a 
mailing of 50 or more Parcel Post rate pieces.
* * * * *

456 Enter and Deposit

* * * * *

2.0 Parcel Select

* * * * *

2.2 Rate Eligibility for Parcel Select Rates

* * * * *

2.2.2 DBMC Rates

* * * * *
[Renumber items b and c as new items c and d. Insert new item b as 
follows:]

    b. Machinable parcels must bear a barcode under 708.5.0 for the ZIP 
Code of the delivery address. Nonbarcoded machinable parcels are 
eligible only for the Intra-BMC/ASF rates.
* * * * *

2.6 Acceptance at Designated SCF--Mailer Benefit

* * * * *
[Revise item b as follows:]

    b. Bound Printed Matter machinable parcels under 466.3.3 and 
Standard Mail parcels under 705.6.3 may be included.
* * * * *

460 Discount Parcels: Bound Printed Matter

[Incorporate the standards for Bound Printed Matter in 160 into 460. 
Make revisions throughout to change single-piece Bound Printed Matter 
to ``nonpresorted'' Bound Printed Matter and make following additional 
changes:]

463 Rates and Eligibility

[We provide the proposed rates and fees for all Bound Printed Matter 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]
* * * * *

465 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

* * * * *
[Renumber items c through g as new items d through h. Insert new item c 
for 5-digit schemes as follows:]

    c. 5-digit scheme (pallets and sacks) for Bound Printer Matter 
parcels: the ZIP Code in the delivery address on all pieces begins with 
one of the 5-digit ZIP Code zones processed by the USPS as a single 
scheme, as shown in L606.
* * * * *

5.0 Preparation for Presorted Parcels

* * * * *

5.2 Preparation for Irregular Parcels Weighing Less Than 10 Pounds

* * * * *

5.2.2 Bundling and Labeling

* * * * *
[Revise item a to require 5-digit schemes as follows:]

    a. 5-digit/scheme (required); red Label 5 or optional endorsement 
line (OEL). See definition in 1.4c.
* * * * *
[Renumber 5.2.3 and 5.2.4 as new 5.2.4 and 5.2.5. Insert new 5.2.3 as 
follows:]

5.2.3 Scheme Bundle Preparation

    See 1.4c for additional standards for pieces prepared in scheme 
bundles.

5.2.4 Sacking and Labeling

* * * * *
[Replace items a and b with new item a as follows. Renumber items c 
through f as new items b through e.]

    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC IRREG 5D SCHEME'' or ``PSVC IRREG 5D SCH.''
* * * * *

5.3 Preparation for Nonmachinable Parcels Weighing 10 Pounds or More

* * * * *

5.3.3 Sacking and Labeling

* * * * *
[Replace items a and b with new item a as follows. Renumber items c 
through f as new items b through e.]

    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC NON MACH 5D SCHEME'' or ``PSVC NON MACH 5D SCH.''
* * * * *

5.4 Preparation for Machinable Parcels Not Claiming the DBMC Rates

* * * * *

5.4.2 Sacking and Labeling

* * * * *

[[Page 56610]]

[Replace items a and b with new item a as follows. Renumber items c and 
d as new items b and c.]

    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
* * * * *

5.5 Preparation for Machinable Parcels Claiming the DBMC Rates

* * * * *

5.5.2 Sacking and Labeling

* * * * *
[Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]

    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
* * * * *

466 Enter and Deposit

1.0 Presenting a Mailing

[Revise the heading of 1.1 as follows:]

1.1 Verification and Entry--Presorted, Carrier Route, Destination 
Entry, And Barcoded Mailings

* * * * *
[Renumber 1.2 through 1.5 as new 1.3 through 1.6. Insert new 1.2 as 
follows:]

1.2 Verification and Entry--Nonpresorted Mailings

    Nonpresorted rate Bound Printed Matter is not offered at post 
offices, branches, stations, or through Postal Service carriers, except 
under 1.2c and 1.2d. Mailers must deposit Nonpresorted Bound Printed 
Matter as follows:
    a. At the time and place specified by the postmaster at the office 
of mailing.
    b. For metered mail, at other than the licensing post office only 
as permitted under 705.17.0, Metered Mail Drop Shipment.
    c. For permit imprint mail, only at the post office where the 
permit is held (see 604.5.0).
    d. At any post office, branch, or station, or with a Postal Service 
carrier, if the correct postage is applied, including postage for any 
extra service elected.
* * * * *

3.0 Destination Bulk Mail Center (DBMC) Entry

* * * * *

3.2 Acceptance at Designated SCF--Mailer Benefit

* * * * *
[Revise item c as follows:]

    c. Parcel Select machinable parcels under 456.2.6 and Standard Mail 
parcels under 705.6.3 may be included.
* * * * *

470 Media Mail

473 Rates and Eligibility

[We provide the proposed rates and fees for all Media Mail services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]
* * * * *

475 Mail Preparation

* * * * *

5.0 Preparation for Media Mail Parcels

* * * * *

5.2 Preparation for Machinable Parcels

* * * * *
[Replace items a and b with new item a as follows. Renumber items c and 
d as new items b and c.]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
* * * * *

5.3 Preparation for Nonmachinable Parcels

* * * * *

5.3.2 Bundling and Labeling

* * * * *
[Revise item a to require 5-digit schemes as follows:]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 10-
piece minimum; red Label 5 or optional endorsement line (OEL). See 
definition in 1.4c.
* * * * *

5.3.4 Sacking and Labeling

* * * * *
[Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC NON MACH 5D SCHEME'' or ``PSVC NON MACH 5D SCH.''

480 Library Mail

483 Rates and Eligibility

[We provide the proposed rates and fees for all Library Mail services 
in ``Rates and Fees'' at the end of this notice, after all of the 
proposed mailing standards.]
* * * * *

485 Mail Preparation

* * * * *

5.0 Preparation for Library Mail Parcels

* * * * *

5.2 Preparation for Machinable Parcels

* * * * *
[Replace items a and b with new item a as follows. Renumber items c and 
d as new items b and c.]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
* * * * *

5.3 Preparation for Nonmachinable Parcels

* * * * *

5.3.2 Bundling and Labeling

* * * * *
[Revise item a to require 5-digit schemes as follows:]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 10-
piece minimum; red Label 5 or optional endorsement line (OEL). See 
definition in 1.4c.
* * * * *

5.3.4 Sacking and Labeling

* * * * *
[Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]

    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC NON MACH 5D SCHEME'' or ``PSVC NON MACH 5D SCH.''
* * * * *

[[Page 56611]]

500 Additional Services

503 Extra Services

[We provide the proposed rates and fees for all extra services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]
* * * * *

4.0 Insured Mail

* * * * *

4.2 Basic Information

4.2.1 Description

* * * * *
[Revise item d as follows:]

    d. Insured mail service provides the mailer with a mailing receipt. 
No record of insured mail is kept at the office of mailing. For mail 
insured for $200 or less, the USPS maintains delivery information (not 
including a signature). For mail insured for more than $200, the USPS 
maintains a delivery record (which includes the recipient's signature) 
for a specified period of time. Customers may obtain a delivery record 
by purchasing additional services; see 6.0 for details.

4.2.2 Eligible Matter

* * * * *
[Revise item b as follows:]

    b. Standard Mail pieces prepared as machinable or nonmachinable 
parcels (bulk insurance only).
* * * * *

4.2.4 Additional Services

[Revise the first sentence in 4.2.4 as follows:]

    Insuring an item for more than $200 allows customers to purchase 
restricted delivery service or return receipt service.* * *
* * * * *
[Revise item c as follows:]

    c. Return receipt for merchandise (for items insured for $200 or 
less).
* * * * *

4.3 Mailing

* * * * *

4.3.3 Markings and Forms

* * * * *
[Revise items a and b as follows:]

    a. Retail pieces insured for $200 or less: The mailer must affix a 
barcoded Form 3813 (see Exhibit 4.3.3) to each piece above the delivery 
address and to the right of the return address. No signature is 
obtained.
    b. Retail pieces insured for more than $200: The mailer must affix 
a barcoded Form 3813-P (see Exhibit 4.3.3) to each piece above the 
delivery address and to the right of the return address.
* * * * *

4.3.5 Integrated Barcodes

* * * * *
[Revise items c1 and c2 as follows:]

    1. Mailers may purchase insurance online for indemnity coverage of 
$200 or less with electronic option Delivery Confirmation service. The 
human-readable text above the integrated barcode must state, ``e/USPS 
Delivery Confirmation.''
    2. Mailers may purchase insurance online for indemnity coverage of 
more than $200, up to $500, with electronic option Delivery 
Confirmation service. The human-readable text above the integrated 
barcode must state, ``e/USPS Insured.''
* * * * *

4.3.7 Receipt

* * * * *
[Revise items a1 and a2 as follows:]

    1. Form 3813 when the insurance coverage is $200 or less.
    2. Form 3813-P when the insurance coverage is more than $200.
* * * * *

4.5 Delivery

[Revise the first sentence of 4.5 and add a new second sentence as 
follows:]

    An item insured for $200 or less is delivered as ordinary mail and 
receives a delivery scan. An item insured for more than $200 receives a 
delivery scan and the recipient's signature.* * *
* * * * *

6.0 Return Receipt

* * * * *

6.2 Basic Information

* * * * *

6.2.2 Eligible Matter

* * * * *
[Revise items b, c, and d to replace old value of $50 with new value of 
$200. Further revise item c to remove reference to residual shape 
surcharge and insert text about preparation as machinable or 
nonmachinable parcels as follows:]

    b. First-Class Mail (including Priority Mail) when purchased at the 
time of mailing with Certified Mail, COD, insured mail (for more than 
$200), or Registered Mail service.
    c. Standard Mail prepared as machinable or nonmachinable parcels 
when bulk insurance (for more than $200) is purchased at the time of 
mailing.
    d. Package Services when purchased at the time of mailing with COD 
or insured mail (for more than $200).
* * * * *

6.3 Obtaining Service

* * * * *

6.3.2 After Mailing

[Revise first sentence of 6.3.2 to replace old value of $50 with new 
value of $200 as follows:]

    The mailer may request a delivery record after mailing for Express 
Mail, Certified Mail, Registered Mail, COD mail, and mail insured for 
more than $200. * * *
* * * * *

7.0 Restricted Delivery

* * * * *

7.2 Basic Information

* * * * *

7.2.2 Eligible Matter

* * * * *
[Revise items a, b, and c to replace old value of $50 with new value of 
$200. Further revise item b to remove reference to residual shape 
surcharge and insert text about preparation as machinable or 
nonmachinable parcels as follows:]

    a. First-Class Mail (including Priority Mail) when purchased at the 
time of mailing with Certified Mail, COD, insured mail (for more than 
$200), or Registered Mail service.
    b. Standard Mail prepared as machinable or nonmachinable parcels 
when bulk insurance (for more than $200) is purchased at the time of 
mailing.
    c. Package Services when purchased at the time of mailing with COD 
or insured mail (for more than $200).
* * * * *

8.0 Return Receipt for Merchandise

* * * * *

8.2 Basic Information

* * * * *

8.2.2 Eligible Matter

[Revise 8.2.2 as follows:]

    Return receipt for merchandise is available for merchandise sent as 
Priority Mail, Standard Mail parcels, and Package Services.
* * * * *

8.2.4 Additional Services

* * * * *
[Revise item b to replace old value of $50 with new value of $200 as 
follows:]


[[Page 56612]]


    b. Insurance (for up to $200).
* * * * *

9.0 Delivery Confirmation

* * * * *

9.2 Basic Information

* * * * *

9.2.2 Eligible Matter

[Revise 9.2.2 to remove reference to Standard Mail residual shape 
surcharge and insert text about Standard Mail preparation as machinable 
or nonmachinable parcels as follows:]

    Delivery Confirmation is available for First-Class Mail parcels 
under 401.1.0, for all Priority Mail pieces, for Standard Mail pieces 
prepared as machinable or nonmachinable parcels (electronic option 
only), and for Package Services parcels under 401.1.0. For the purposes 
of using Delivery Confirmation with a First-Class Mail parcel or a 
Package Services parcel, the parcel must meet these additional 
requirements:
* * * * *

9.2.6 Additional Services

* * * * *
[Revise items d and e to replace old value of $50 with new value of 
$200 as follows:]

    d. Restricted delivery, if purchased with insurance for more than 
$200, COD, or registry service.
    e. Return receipt, if purchased with insurance for more than $200, 
COD, or registry service.
* * * * *

10.0 Signature Confirmation

* * * * *

10.2 Basic Information

* * * * *

10.2.2 Eligible Matter

[Revise the introductory text of 10.2.2 as follows:]

    Signature Confirmation is available for First-Class Mail parcels 
and Package Services parcels defined in 401.1.0, and for all Priority 
Mail pieces. For the purposes of using Signature Confirmation with a 
First-Class Mail or Package Services parcel, the parcel must meet these 
additional requirements:
* * * * *

10.2.6 Additional Services

* * * * *
[Revise item d to replace old value of $50 with new value of $200 as 
follows:]

    d. Restricted delivery, if purchased with insurance for more than 
$200, COD, or registry service.
* * * * *

13.0 Confirm

* * * * *

13.2 Basic Information

* * * * *
[Revise the heading and text in 13.2.7 as follows:]

13.2.7 Subscription

    Confirm is available in blocks of 1 million units. By paying the 
user fee, subscribers receive 1 million units. The user fee and the 1 
million units are valid for 1 year from the date purchased. Additional 
units may be purchased during the subscription period in blocks of 1 
million with a declining price threshold as described in 13.1.1. Units 
expire when the annual fee expires. Units are redeemed for Confirm 
scans at the rate of one unit per First-Class Mail scan or five units 
per scan of other classes of mail.
* * * * *

507 Mailer Services

[We provide the proposed rates and fees for all mailer services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]
[Revise 507 to change the term ``accounting fee'' to ``account 
maintenance fee'' throughout the chapter.]

1.0 Treatment of Mail

* * * * *

1.5 Treatment for Ancillary Services by Class of Mail

* * * * *

1.5.2 Periodicals

* * * * *
[Revise item f to remove the nonmachinable surcharge in the second-to-
last sentence as follows:]

    f. * * * Each returned piece is charged the single-piece First-
Class Mail rate for the weight and shape of the piece or the Priority 
Mail rate for the weight and destination of the piece. * * *
* * * * *

1.5.3 Standard Mail

* * * * *
[Revise the second sentence in item i as follows:]

    i. * * * The weighted fee is the single-piece First-Class Mail rate 
for the weight and shape of the piece or the Priority Mail rate for the 
weight and destination of the piece multiplied by 2.472 and rounded up 
to the next whole cent (if the computation yields a fraction of a 
cent). * * *

[Revise item j as follows:]

    j. Returned pieces endorsed ``Return Service Requested'' are 
charged the single-piece First-Class Mail rate for the weight and shape 
of the piece or the Priority Mail rate for the weight and destination 
of the piece.
* * * * *

1.6 Attachments and Enclosures

1.6.1 Periodicals

[Revise the first sentence in 1.6.1 as follows:]

    Undeliverable Periodicals (including publications pending 
Periodicals authorization) with a nonincidental First-Class Mail 
attachment or enclosure are returned at the single-piece First-Class 
Mail rate for the weight and shape of the piece or Priority Mail rate 
for the weight and destination of the piece. * * *

1.6.2 Standard Mail

[Revise the first sentence in 1.6.2 as follows:]

    Undeliverable, unendorsed Standard Mail with a nonincidental First-
Class Mail attachment or enclosure is returned at the single-piece 
First-Class Mail rate for the weight and shape of the piece or Priority 
Mail rate for the weight and destination of the piece. * * *
* * * * *

3.0 Address Correction Services

* * * * *

3.2 Address Change Service (ACS)

* * * * *

3.2.2 Service Options

[Revise 3.2.2 as follows:]

    ACS offers three levels of service:
    a. An automated option for letter-size mail with electronic notices 
processed using OneCode technology (see 3.2.6, Additional Standards--4-
State Customer Barcodes).
    b. An electronic option for all notices processed electronically, 
except automated notices under 3.2.2a.
    c. A manual option for notices processed manually.
* * * * *

10.0 Merchandise Return Service

* * * * *

10.5 Additional Features

* * * * *

10.5.3 Insured Markings

[Revise 10.5.3 as follows:]

    The permit holder must either leave a clear space on the 
merchandise return label to the right of the return address for the 
numbered insured label or instruct the customer to affix the

[[Page 56613]]

merchandise return label to the article so that the USPS acceptance 
employee can place the insured label on the article directly above the 
merchandise return label.
* * * * *

508 Recipient Services

[We provide the proposed rates and fees for all recipient services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]

1.0 Recipient Options

1.1 Basic Recipient Concerns

* * * * *

1.1.7 Express Mail and Accountable Mail

[Revise the introductory text of 1.1.7 to change the insurance 
threshold from $50 to $200 as follows:]

    The following conditions also apply to the delivery of Express Mail 
and accountable mail (registered, certified, insured for more than 
$200, or COD, as well as mail for which a return receipt or a return 
receipt for merchandise is requested or for which the sender has 
specified restricted delivery):
* * * * *

600 Basic Standards for All Mailing Services

[Change the terminology from ``irregular'' parcels to ``nonmachinable'' 
parcels throughout 600.]
* * * * *

604 Postage Payment Methods

[We provide the proposed rates and fees for all mailing services in 
``Rates and Fees'' at the end of this notice, after all of the proposed 
mailing standards.]

1.0 Stamps

1.1 Postage Stamp Denominations

[Add the forever stamp to the table of types and formats of stamps.]
* * * * *
[Renumber current 1.10 through 1.12 as new 1.11 through 1.13 and remove 
reference to nonmachinable surcharge. Insert new 1.10 as follows:]

1.10 Additional Standards for Forever Stamps

    Forever stamps are sold for the price of the current First-Class 
Mail single-piece 1-ounce letter rate in 133.1.5. The postage value of 
each forever stamp is the current First-Class Mail single-piece 1-ounce 
letter rate.

[Revise the heading of 1.11 as follows:]

1.11 Additional Standards for Semipostal Stamps

* * * * *
[Revise item c to remove reference to nonmachinable surcharge as 
follows:]

    c. The postage value of each semipostal stamp is the First-Class 
Mail single-piece 1-ounce letter rate in 133.1.5 * * *
* * * * *

609 Filing Indemnity Claims for Loss or Damage

1.0 General Filing Instructions

* * * * *

1.5 Where to File for Loss or Damage

* * * * *
[Add new text to item a as follows:]

    a. Online at www.usps.com * * *
* * * * *
[Revise the heading of 2.0 as follows:]

2.0 Providing Proof of Missing Contents or Damage

[Revise 2.1 and 2.2 to change the requirements for proving missing 
contents or damage as follows:]

2.1 Missing Contents

    If a claim is filed because some or all of the contents are 
missing, the addressee must make available the mailing container, 
including any wrapping, packaging, and any contents that were received, 
to the USPS with the claim.

2.2 Proof of Damage

    If the addressee files the claim, the addressee must make available 
the damaged article and mailing container, including any wrapping, 
packaging, and any other contents that were received, to the USPS for 
inspection. If the mailer files the claim, the USPS will notify the 
addressee by letter to make available the damaged article and mailing 
container, including any wrapping, packaging, and any other contents 
that were received, to the USPS for inspection. Failure to do so will 
result in denial of the claim.

[Delete 2.3, Proof of Loss.]
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

[Change the terminology from ``irregular'' parcels to ``nonmachinable'' 
parcels and from ``IRREG'' to ``NON MACH'' for parcel preparation 
throughout 705.]

1.0 Customized MarketMail

* * * * *

1.2 Rates

[Revise 1.2 as follows:]

    Pieces mailed as Customized MarketMail under 705.1.0 must pay the 
Regular or Nonprofit Standard Mail 5-digit nonentry rate for Not Flat-
Machinable pieces and must not exceed 3.3 ounces.
* * * * *

6.0 Combining Mailings of Standard Mail and Package Services Parcels

6.1 Combined Machinable Parcels--DBMC Entry

* * * * *

6.1.2 Basic Standards

* * * * *
[Renumber current items c through h as new items d through i. Insert 
new item c as follows:]

    c. Parcel Select machinable parcels must bear a barcode under 
708.5.0 for the ZIP Code of the delivery address.
* * * * *
[Insert new 6.3 as follows:]

6.3 Combining Package Services and Standard Mail--Optional 3-Digit 
Preparation

6.3.1 Acceptance at Designated SCF--Qualification and Preparation

    Mailers may deposit parcels otherwise eligible for the Package 
Services and Standard Mail DBMC rates (for machinable parcels) and the 
Standard Mail SCF rate (for nonmachinable parcels and Not Flat-
Machinable pieces) at an SCF designated by the USPS for destination ZIP 
Codes listed in labeling list L607. The following standards apply:
    a. Standard Mail parcels, Not Flat-Machinable pieces, Bound Printed 
Matter machinable parcels, and Parcel Select machinable parcels may be 
included. Standard Mail parcels and Not Flat-Machinable pieces that 
weigh less than 2 ounces and Standard Mail parcels that are tubes, 
rolls, triangles, and similar pieces may not be included.
    b. Mailers must prepare pieces on 3-digit pallets or in 3-digit 
pallet boxes, or unload and physically separate the pieces into 
containers as specified by the destination facility.
    c. Parcel Select and Bound Printed Matter parcels are eligible for 
the applicable DBMC entry rate.
    d. Standard Mail machinable parcels are eligible for the BMC 
presort level, DBMC rate; Not Flat-Machinable pieces and nonmachinable 
parcels are eligible for the 3-digit presort level, DSCF rate.
    e. All pieces must be for delivery within the service area of the 
SCF where they are deposited by the mailer.
    f. Postage on all zone-rated parcels deposited at the SCF is 
computed using the zone chart for that postal facility.

[[Page 56614]]

6.3.2 Documentation

    Presort documentation is required for each rate claimed if the 
manifest does not list pieces in presort order. Separate postage 
statements must be prepared for the Standard Mail and Package Services 
pieces. Within each group, combined forms may be prepared where the 
standards and the forms permit. All postage statements must be provided 
at the time of mailing.

6.3.3 Authorization

    Mailers must be authorized under 6.1.5 to prepare mailings that 
combine Standard Mail pieces and Package Services parcels.

6.3.4 Postage Payment

    Postage for all pieces must be paid with permit imprint at the post 
office serving the mailer's plant under an approved manifest mailing 
system under 2.0.

7.0 Combining Package Services Parcels for Destination Entry

* * * * *

7.2 Combining Package Services Machinable Parcels for DBMC Entry

* * * * *

7.2.2 Basic Standards

* * * * *
[Renumber current items c through h as new items d through i. Insert 
new item c as follows:]

    c. Parcel Select machinable parcels must bear a barcode under 
708.5.0 for the ZIP Code of the delivery address.
* * * * *

8.0 Preparation for Pallets

* * * * *

8.5 General Preparation

* * * * *

8.5.6 Mail on Pallets

* * * * *
[Revise item c to delete ``automation carrier route'' and to replace 
``presorted'' with ``nonautomation'' as follows:]

    c. For letter-size Standard Mail and Periodicals prepared in trays 
on pallets, mailers must prepare carrier route rate mail on separate 5-
digit pallets (5-digit carrier routes pallets) from automation rate or 
nonautomation rate mail (5-digit pallets).
* * * * *

8.10 Pallet Presort and Labeling

* * * * *

8.10.2 Standard Mail--Bundles, Sacks, or Trays

[Reorganize introductory text of 8.10.2 as follows:]

    Mailers must prepare pallets under 8.0 in the sequence listed below 
and complete at each required level before preparing the next optional 
or required level. Unless indicated as optional, all sort levels are 
required. For mailings of sacks or trays on pallets, pallet preparation 
begins with 8.10.1e. Pallets must be labeled according to the Line 1 
and Line 2 information listed below and under 8.6. Mailers also may 
palletize bundles of Standard Mail flats under 10.0, 12.0, or 13.0.
* * * * *
[Revise the heading and text of 8.10.5 to add Not Flat-Machinable 
pieces as follows:]

8.10.5 Package Services and Standard Mail Machinable Parcels, and Not 
Flat Machinable Pieces Weighing 6 Ounces or More

    Pallets must be prepared under 8.0 in the sequence listed below and 
completed at each required level before the next optional or required 
level is prepared. Unless indicated as optional, all sort levels are 
required under the conditions shown. At the mailer's option, Inter-BMC/
ASF and Intra-BMC/ASF Parcel Post mailings may be prepared on pallets 
under this section. Destination entry rates eligibility applies only to 
Standard Mail (see 446 for parcels and NFMs that weigh 6 ounces or 
more), Parcel Select (see 456), and Bound Printed Matter (see 466). 
Combined mailings of Standard Mail and Package Services machinable 
parcels also must meet the standards in 6.0. Pallets must be labeled 
according to the Line 1 and Line 2 information listed below and under 
8.6.
    a. 5-digit scheme, required, pallet must contain parcels or NFMs 
for the same 5-digit scheme under L606. For 5-digit destinations not 
part of L606, or for which scheme sorts are not performed, 5-digit 
pallets are prepared under 8.10.5b.
    Labeling:
    1. Line 1: L606.
    2. Line 2: ``STD MACH 5D,'' ``STD NFM 5D,'' or ``PSVC MACH 5D,'' as 
applicable; followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet must contain parcels only for the same 
5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).
    2. Line 2: ``STD MACH 5D,'' ``STD NFM 5D,'' or ``PSVC MACH 5D,'' as 
applicable.
    c. ASF, optional, but required for DBMC rates. Not available for 
the Buffalo, NY ASF in L602. Pallets must contain only parcels or NFMs 
for the 3-digit ZIP Code groups in L602. Labeling:
    1. Line 1: L602.
    2. Line 2: ``STD MACH ASF,'' ``STD NFM ASF,'' or ``PSVC MACH ASF,'' 
as applicable.
    d. BMC, required. Pallets must contain only parcels or NFMs for the 
3-digit ZIP Code groups in L601. Labeling:
    1. Line 1: L601.
    2. Line 2: ``STD MACH BMC,'' ``STD NFM BMC,'' or ``PSVC MACH BMC,'' 
as applicable.
    e. Mixed BMC, optional. Labeling:
    1. Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code prefix of entry post office (or labeled to 
plant serving entry post office if authorized by processing and 
distribution manager).
    2. Line 2: ``STD MACH WKG,'' ``STD NFM WKG,'' or ``PSVC MACH WKG,'' 
as applicable.

[Insert new 8.10.6 as follows:]

8.10.6 Standard Mail Nonmachinable Parcels Weighing 2 Ounces or More

    Mailers who palletize nonmachinable parcels must make pallets or 
pallet boxes when there are 250 pounds or more for the destination 
levels below. Pallets or pallet boxes of nonmachinable parcels (except 
tubes, rolls, and similar pieces) weighing 2 ounces or more must be 
prepared under 8.0 in the sequence listed below and completed at each 
required level before the next optional or required level is prepared. 
Unless indicated as optional, all sort levels are required. Label 
pallets or pallet boxes according to the Line 1 and Line 2 information 
listed below and under 8.6. Mailers may not prepare tubes, rolls, and 
similar pieces or pieces that weigh less than 2 ounces on pallets or in 
pallet boxes.
    a. 5-digit scheme, required. Pallet or pallet box must contain 
parcels only for the same 5-digit scheme under L606. For 5-digit 
destinations not part of L606, or for which scheme sorts are not 
performed, prepare 5-digit pallets under 8.10.6b.
    Labeling:
    1. Line 1: Use L606.
    2. Line 2: ``STD NONMACH 5D; followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet or pallet box must contain parcels 
only for the same 5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).

[[Page 56615]]

    2. Line 2: ``STD NONMACH 5D''.
    c. 3-digit, optional, option not available for 3-digit ZIP Code 
prefixes marked ``N'' in L002. Pallet or pallet box must contain 
parcels only for the same 3-digit ZIP Code. Labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NONMACH 3D.''
    d. ADC, required. Pallet or pallet box must contain parcels for the 
3-digit ZIP Code groups in L005. Labeling:
    1. Line 1: Use L602.
    2. Line 2: ``STD NONMACH ADC.''
    e. Mixed ADC, optional. Labeling:
    1. Line 1: ``MXD'' followed by city, state, and ZIP Code 
information for ADC serving 3-digit ZIP Code prefix of entry post 
office as shown in L603, Column A.
    2. Line 2: ``STD NONMACH MXD.''
* * * * *
[Insert new 8.10.7 as follows:]

8.10.7 Standard Mail Not Flat-Machinable Pieces Weighing Less Than 6 
Ounces

    Mailers must prepare pieces on pallets or in pallet boxes when 
there are 250 pounds or more of NFMs for the destination levels below. 
Prepare pallets or pallet boxes of NFM pieces weighing less than 6 
ounces under 8.0 in the sequence listed below and completed at each 
required level before the next optional or required level is prepared. 
Unless indicated as optional, all sort levels are required. Label 
pallets or pallet boxes according to the Line 1 and Line 2 information 
listed below and under 8.6.
    a. 5-digit scheme, required. Pallet or pallet box must contain NFMs 
only for the same 5-digit scheme under L606. For 5-digit destinations 
not part of L606, or for which scheme sorts are not performed, prepare 
5-digit pallets under 8.10.6b. Labeling:
    1. Line 1: Use L606.
    2. Line 2: ``STD NFM 5D; followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet or pallet box must contain NFMs only 
for the same 5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).
    2. Line 2: ``STD NFM 5D''.
    c. 3-digit, optional, option not available for 3-digit ZIP Code 
prefixes marked ``N'' in L002. Pallet or pallet box must contain NFMs 
only for the same 3-digit ZIP Code. Labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NFM 3D.''
    d. ADC, required. Pallet or pallet box must contain NFMs for the 3-
digit ZIP Code groups in L005. Labeling:
    1. Line 1: Use L004.
    2. Line 2: ``STD NFM ADC.''
    e. Mixed ADC, optional. Labeling:
    1. Line 1: ``MXD'' followed by city, state, and ZIP Code 
information for ADC serving 3-digit ZIP Code prefix of entry post 
office as shown in L004, Column A.
    2. Line 2: ``STD NFM MXD''.
* * * * *

8.14 Pallets of Bundles, Sacks, and Trays

* * * * *

8.14.2 Standard Mail

* * * * *
[Revise item a2 as follows:]

    2. Mailers may include machinable parcels, nonmachinable parcels, 
and Not Flat-Machinable pieces on 5-digit pallets.
* * * * *
[Revise 11.0 to replace ``presorted'' with ``nonautomation'' 
throughout.]

11.0 Preparation of Cobundled Automation Rate and Nonautomation Rate 
Flats

11.1 First-Class Mail

11.1.1 Basic Standards

* * * * *
[Delete item f.]
* * * * *

11.2 Periodicals

11.2.1 Basic Standards

[Revise introductory text in 11.2.1 to require 5-digit scheme and 3-
digit scheme sort and eliminate distinctions between AFSM 100 and UFSM 
1000 flats as follows:]

    Mailers may choose to cobundle (see 707.18.4ab) automation rate and 
nonautomation rate flat-size pieces as an option to the basic bundling 
requirements in 707.22.0 and 707.25.0. Flats in the same bundle must 
all meet the standards in 301.3.0 or all meet the standards in 
707.25.3. 5-digit scheme and 3-digit scheme bundles also must meet the 
additional standards in 707.18.4i and 707.18.4r. Mailing jobs (for 
flats meeting the criteria in 301.3.0) prepared using the 5-digit 
scheme and/or the 3-digit scheme bundle preparation must be sacked 
under 10.0 or palletized under 10.0, 12.0, or 13.0. All bundles are 
subject to the following conditions: * * *

11.2.2 Bundle Preparation

[Add two new sentences to the beginning of 11.2.2 as follows:]

    Only pieces meeting the criteria in 301.3.0 may be prepared in 5-
digit scheme bundles for those 5-digit ZIP Codes identified in L007 and 
in 3-digit scheme bundles for those 3-digit ZIP Codes identified in 
L008. * * *
* * * * *
[Revise item b to require 5-digit scheme bundles as follows:]

    b. 5-digit scheme, required * * *
* * * * *
[Revise item d to require 3-digit scheme bundles as follows:]

    d. 3-digit scheme, required * * *
* * * * *

11.3 Standard Mail

11.3.1 Basic Standards

[Revise introductory text in 11.3.1 to require 5-digit scheme and 3-
digit scheme sort and eliminate distinctions between AFSM 100 and UFSM 
1000 flats as follows:]

    Mailers may choose to cobundle (see 345.1.4u) automation rate and 
nonautomation rate flat-size pieces as an option to the basic bundling 
requirements in 345.5.0 and 345.7.0. Flats in the same bundle must all 
meet the standards in 301.3.0. 5-digit scheme and 3-digit scheme 
bundles must meet the additional standards in 345.1.4f and 345.1.4n. 
Mailing jobs prepared using the 5-digit scheme and/or 3-digit scheme 
bundle preparation (for flats meeting the criteria in 301.3.0) must be 
sacked under 10.0 or palletized under 10.0, 12.0, or 13.0. All bundles 
are subject to the following conditions:
* * * * *
[Delete item g. Renumber item h as new item g.]
* * * * *

11.3.2 Bundle Preparation

[Add two new sentences to the beginning of 11.3.2 as follows:]

    Only pieces meeting the criteria in 301.3.0 may be prepared in 5-
digit scheme bundles for those 5-digit ZIP Codes identified in L007 and 
in 3-digit scheme bundles for those 3-digit ZIP Codes identified in 
L008. * * *

[Revise item a to require 5-digit scheme bundles as follows:]

    a. 5-digit scheme, required: * * *
* * * * *
[Revise item c to require 3-digit scheme bundles as follows:]

    c. 3-digit scheme, required: * * *
* * * * *

15.0 Plant-Verified Drop Shipment

* * * * *

15.2 Program Participation

* * * * *

15.2.4 Periodicals

[Revise 15.2.4 to reflect the new rate structure for Periodicals mail 
as follows:]

    Periodicals postage must be paid at the post office verifying the 
copies or as

[[Page 56616]]

designated by the district. Postage is calculated from the destination 
USPS facility where deposited and accepted as mail (or from the 
facility where the Express Mail or Priority Mail drop shipment 
destinates). The publisher must ensure that sufficient funds are on 
deposit to pay for all shipments before their release. A publisher 
authorized under an alternative postage payment system must pay postage 
under the corresponding standards.
* * * * *

707 Periodicals

[We provide the proposed rates and fees for all Periodicals mail 
services in ``Rates and Fees'' at the end of this notice, after all of 
the proposed mailing standards.]

1.0 Rates and Fees

1.1 Outside-County--Excluding Science-of-Agriculture

* * * * *
[Renumber current 1.1.3 through 1.1.5 as new 1.1.4 through 1.1.6. 
Insert new 1.1.3 as follows:]

1.1.3 Outside-County Container Rate

    Rate per pallet, sack, or tray containing Outside-County 
Periodicals mail: $0.85.
    The following standards apply:
    a. For mailings correctly prepared in sacks on pallets under 
705.8.0, mailers pay the container rate for each sack, and not for the 
pallet.
    b. For mailings correctly prepared in bundles or trays on pallets 
under 705.8.0, mailers pay the container rate for each pallet, and not 
for the bundles or trays.
    c. For mailings not presented in containers under 707.23.4, 
Exception to Sacking, mailers pay the container rate for each 5-digit 
ZIP Code or 5-digit scheme serviced by the DDU.
* * * * *

1.2 Outside-County--Science-of-Agriculture

* * * * *
[Renumber current 1.2.3 as new 1.2.4. Insert new 1.2.3 as follows:]

1.2.3 Outside-County Container Rate

    Rate per pallet, sack, or tray containing Outside-County 
Periodicals mail: $0.85. The following standards apply:
    a. For mailings correctly prepared in sacks on pallets under 
705.8.0, mailers pay the container rate for each sack, and not for the 
pallet.
    b. For mailings correctly prepared in bundles or trays on pallets 
under 705.8.0, mailers pay the container rate for each pallet, and not 
for the bundles or trays.
    c. For mailings not presented in containers under 707.23.4, 
Exception to Sacking, mailers pay the container rate for each 5-digit 
ZIP Code or 5-digit scheme serviced by the DDU.
* * * * *

2.0 Rate Application and Computation

2.1 Rate Application

2.1.1 Rate Elements

[Revise 2.1.1 to reflect the new Outside-County container rate and the 
new nonadvertising rate structure as follows:]

    Postage for Periodicals mail includes a pound rate charge, a piece 
rate charge, an Outside-County container rate charge, and any discounts 
for which the mail qualifies under the corresponding standards.

2.1.2 Applying Pound Rate

[Revise 2.1.2 to reflect the new Outside-County container rate and the 
new nonadvertising rate structure as follows:]

    Pound rates are applied to the weight of the pieces in the mailing 
as follows:
    a. Outside-County pound rates are based on the weight of the 
advertising portion sent to each postal zone (as computed from the 
entry office) or delivery unit zone, and the weight of the 
nonadvertising portion to a delivery unit zone.
    b. Science-of-Agriculture Outside-County pound rates are based on 
the weights of the advertising portion and the nonadvertising portion 
of the mail sent to each postal zone (as computed from the entry 
office) or delivery unit zone.
    c. In-County pound rates consist of a delivery unit zone rate and 
an unzoned rate for all other eligible copies delivered within the 
county of publication.

2.1.3 Computing Weight of Advertising and Nonadvertising Portions

[Revise 2.1.3 to reflect the new Outside-County container rate and the 
new nonadvertising rate structure as follows:]

    The pound rate charge is the sum of the charges for the computed 
weight of the advertising portion of copies to each zone, plus the sum 
of the charges for the computed weight of the nonadvertising portion of 
copies to each zone. The following standards apply:
    a. The minimum pound rate charge for any zone to which copies are 
mailed is the 1-pound rate. For example, three 2-ounce copies for a 
zone are subject to the minimum 1-pound charge.
    b. Authorized Nonprofit and Classroom publications with an 
advertising percentage that is 10% or less are considered 100% 
nonadvertising. When computing the pound rates and the nonadvertising 
adjustment, use ``0'' as the advertising percentage. Authorized 
Nonprofit and Classroom publications claiming 0% advertising must pay 
the nonadvertising pound rate for the entire weight of all copies to 
all zones.
* * * * *

3.0 Physical Characteristics and Content Eligibility

* * * * *

3.5 Mailpiece Construction

* * * * *

3.5.2 Size and Weight

[Insert new second sentence in 3.5.2 to include the maximum weight and 
thickness for Periodicals automation flat-size pieces as follows:]

    * * * Automation flat-size pieces may not weigh more than 6 pounds 
or measure more than 1\1/4\ inch thick. * * *
* * * * *

11.0 Basic Rate Eligibility

* * * * *

11.4 Discounts

[Delete item c to eliminate the pallet discounts.]
* * * * *

15.0 Ride-Along Rate Eligibility

* * * * *

15.3 Physical Characteristics

* * * * *
[Revise item c as follows:]

    c. A Periodicals piece with a Ride-Along that claims automation 
rates must meet the automation requirements in 201.3.0, Physical 
Standards for Automation Letters and Cards, or 25.0, Preparing Flat-
Size Automation Periodicals, and must maintain the same processing 
category as before the addition of the Ride-Along. For example, if, due 
to the inclusion of a Ride-Along piece, an automation letter-size host 
piece can no longer be processed as an automation letter, then that 
piece must pay the Periodicals nonautomation rate for the host piece 
plus the Ride-Along rate or the Standard Mail rate for the attachment 
or enclosure.
* * * * *

[[Page 56617]]

17.0 Documentation

* * * * *

17.7 Additional Standards

* * * * *
[Insert new 17.7.4 as follows:]

17.7.4 Outside-County Container Rate Documentation

    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
standardized documentation meeting the basic standards in 708.1.0. The 
documentation must show how many trays, sacks, or pallets are required 
for the rates and discounts claimed, even when the mailing is presented 
under 707.23.4, Exception to Sacking, or is otherwise presented by the 
mailer. Documentation of postage is not required if each piece in the 
mailing is of identical weight and the pieces are separated when 
presented for acceptance by rate, by zone, and by entry discount (such 
as DDU and DSCF). If standardized documentation is not presented, the 
container charge is determined by dividing the total number of Outside-
County pieces in the mailing by 24, and multiplying the result by the 
container rate charge.

18.0 General Information for Mail Preparation

* * * * *

18.3 Presort Terms

* * * * *
[Revise items c, e, and p as follows:]

    c. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
    e. 5-digit scheme (bundles and sacks) for flats prepared according 
to 301.3.0: the ZIP Code in the delivery address on all pieces is one 
of the 5-digit ZIP Codes processed by the USPS as a single scheme, as 
shown in L007.
* * * * *
    p. 3-digit scheme bundles for flats prepared according to 301.3.0: 
the ZIP Code in the delivery address on all pieces is one of the 3-
digit ZIP Codes processed by the USPS as a single scheme, as shown in 
L008.
* * * * *

18.4 Mail Preparation Terms

* * * * *
[Revise items i and r as follows:]

    i. A 5-digit scheme sort for flats prepared according to 301.3.0 
yields 5-digit scheme bundles for those 5-digit ZIP Codes identified in 
L007. Presorting must be performed using L007. Pieces prepared in 
scheme bundles must meet the automation flat criteria in 301.3.0.
* * * * *
    r. A 3-digit scheme sort for flats prepared according to 301.3.0 
yields 3-digit scheme bundles for those 3-digit ZIP Codes identified in 
L008. The 3-digit scheme sort is optional, except under 705.12.0 and 
705.13.0. For 705.12.0 and 705.13.0, presorting must be performed using 
L008. Pieces prepared in scheme bundles must meet the automation flat 
criteria in 301.3.0.
* * * * *

22.0 Preparing Presorted Periodicals

* * * * *

22.2 Bundle Preparation

[Revise the introductory text of 22.2 as follows:]

    Only pieces meeting the criteria in 301.3.0 may be prepared in 5-
digit scheme bundles for those 5-digit ZIP Codes identified in L007 and 
in 3-digit scheme bundles for those 3-digit ZIP Codes identified in 
L008. Bundling is required before traying or sacking. A bundle must be 
prepared when the quantity of addressed pieces for a required presort 
level reaches the minimum bundle size. Smaller volumes are not 
permitted except mixed ADC bundles and 5-digit/scheme and 3-digit/
scheme bundles prepared under 22.4. Bundling is also subject to 19.0, 
Bundles. Preparation sequence, bundle size, and labeling:
* * * * *
[Renumber item b as item c. Insert new item b as follows:]

    b. 5-digit scheme (optional); six-piece minimum; red Label 5 or 
OEL.
* * * * *
[Renumber items d through f as new items e through g. Insert new item d 
as follows:]

    d. 3-digit scheme (optional); six-piece minimum; green Label 3 or 
OEL.
* * * * *

22.6 Sack Preparation--Flat-Size Pieces and Irregular Parcels

* * * * *
[Renumber items a through g as items b through h. Insert new item a as 
follows:]

    a. 5-digit scheme; optional; for pieces meeting the standards in 
301.3.0; 24-piece minimum, fewer pieces not permitted.
    1. Line 1: L007, Column B.
    2. Line 2: ``PER'' or NEWS'' as applicable, followed by ``FLTS 5D 
SCH NON BC.''
* * * * *

22.7 Optional Tray Preparation--Flat-Size Nonautomation Pieces

[Revise the first sentence in 22.7 as follows:]

    As an option, mailers may place in trays the automation-compatible 
flat-size pieces prepared under 301.3.0 that would normally be placed 
in ADC, origin mixed ADC, or mixed ADC sacks. * * *
* * * * *

25.0 Preparing Flat-Size Automation Periodicals

25.1 Basic Standards

25.1.1 General

[Revise 25.1.1 as follows:]

    Each piece must meet the weight and size standards in 301.3.0 or in 
25.3. Bundle, sack, and tray preparation are also subject to 18.0 
through 21.0. Trays and sacks must bear the appropriate barcoded 
container labels under 708.6.0.
* * * * *

25.1.5 Bundle Preparation

* * * * *
[Revise the items a, c, and d as follows:]

    a. Pieces that meet the standards in 301.3.0 must be prepared in 
separate bundles from pieces that meet the standards in 25.3.
* * * * *
    c. Each bundle of pieces prepared under 301.3.0 and each bundle of 
pieces prepared under 25.3 must separately meet the bundle minimums in 
25.4.
    d. Presort destination bundles may contain fewer than six pieces 
when the mailpieces are too thick or too heavy to create a six-piece 
bundle. Rate eligibility is not affected if the total number of pieces 
bundled for a presort destination meets or exceeds the minimum for rate 
eligibility under 14.0.

25.1.6 Scheme Bundle Preparation

[Revise 25.1.6 as follows:]

    Pieces meeting the criteria in 301.3.0 must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
These bundles must meet the additional standards in 18.4i or 18.4r. 
Pieces meeting the alternate criteria in 25.3 must not be prepared in 
scheme bundles.

25.1.7 Sack Preparation

[Revise 25.1.7 as follows:]

    Mailers may combine bundles of pieces prepared under 301.3.0 and 
bundles of pieces prepared under 25.3 in the same sack.

[[Page 56618]]

25.1.8 Exception--Automation and Nonautomation Pieces on Pallets

[Revise the first sentence of 25.1.8 as follows:]

    When the physical dimensions of the mailpieces in a Periodicals 
mailing meet the definition of both a letter-size piece and an 
automation flat-size piece, the entire job may be prepared, merged, and 
palletized under 705.9.0 through 705.13.0 if the applicable standards 
are met.* * *
* * * * *
[Renumber 25.2 and 25.3 as new 25.4 and 25.5. Insert new 25.2 and 25.3 
as follows:]

25.2 Physical Standards

    Each flat-size piece must be rectangular and must meet the 
standards in 301.3.0 or the alternative criteria in 25.3.

25.3 Alternative Criteria

25.3.1 General

    Mailers may prepare automation flat-size pieces that differ in 
weight and thickness from the criteria in 301.3.0 according to 25.3.2 
and 25.3.3. Pieces prepared under 25.3 and pieces prepared under 
301.3.0 may not be combined in the same bundle. Determine length and 
height according to 301.3.2.

25.3.2 Weight and Size

    The maximum weight for each piece is 6 pounds. The following 
minimum and maximum dimensions apply:
    a. Minimum height is 5 inches. Maximum height is 12 inches.
    b. Minimum length is 6 inches. Maximum length is 15 inches.
    c. Minimum thickness is 0.009 inch. Maximum thickness is 1.25 
inches.

25.3.3 Address Placement on Folded Pieces

    Mailers must design folded pieces so that the address is in view 
when the final folded edge is to the right and any intermediate bound 
or folded edge is at the bottom of the piece. Unbound flat-size pieces 
must be at least double-folded.

25.4 Bundling and Labeling

* * * * *
[Revise items a and c in renumbered 25.4 to require scheme bundling as 
follows:]

    a. 5-digit scheme (required for pieces meeting the standards in 
301.3.0); six-piece minimum (fewer pieces permitted under 25.1.9); 
optional endorsement line (OEL) required.
* * * * *
    c. 3-digit scheme (required for pieces meeting the standards in 
301.3); six-piece minimum (fewer pieces permitted under 25.1.9); OEL 
required.
* * * * *

25.5 Sacking and Labeling

* * * * *
[Revise item a in renumbered 25.5 as follows:]

    a. 5-digit scheme (for pieces meeting the standards in 301.3.0 
only), required at 24 pieces, fewer pieces not permitted; may contain 
5-digit scheme bundles only; labeling:
* * * * *

25.6 Optional Tray Preparation--Flat-Size Barcoded Pieces

[Revise the first sentence in renumbered 25.6 as follows:]

    As an option, mailers may place in trays the automation-compatible 
flat-size pieces prepared under 301.3.0 that would normally be placed 
in ADC, origin mixed ADC, or mixed ADC sacks. * * *
* * * * *

26.0 Combining Multiple Editions or Publications

[Reorganize and revise 26.0 to add the definition and standards for 
copalletized mailings. The experimental copalletization drop-ship 
classifications in 709.3.0 and 709.4.0 expire, and all mailers may 
copalletize under 26.0 as follows:]

26.1 Description

    Mailers may prepare Periodicals publications as a combined mailing 
by merging copies or bundles of copies to achieve the finest presort 
level possible or to reduce the per piece or the Outside-County 
container rate charge. Mailers may use one of the following methods:
    a. Mailers may merge and sort together (``comail'') individually 
addressed copies of different editions of a Periodicals publication 
(one title) or individually addressed copies of different Periodicals 
publications (more than one title) to obtain a finer presort level.
    b. Mailers may place two or more copies of different Periodicals 
publications (two or more titles), and/or multiple editions of the same 
publication in the same mailing wrapper or firm bundle and present it 
as one addressed piece to a single recipient to reduce the per piece 
charge.
    c. Mailers may copalletize separately presorted bundles of 
different Periodicals titles and editions to achieve minimum pallet 
weights. Mailers do not have to achieve the finest pallet presort level 
possible.

26.2 Authorization

26.2.1 Basic Standards

    Each publication in a combined mailing must be authorized (or 
pending authorization) to mail at Periodicals rates. A mailer preparing 
comailed or copalletized mailings under 26.1a and 26.1c must be 
authorized to do so by Business Mailer Support (see 608.8.1 for 
address). For copalletization, each mailer that sends mail to the 
copalletization facility also must be authorized. Requests for 
authorization must show:
    a. The mailer's name and address.
    b. The mailing office.
    c. Procedures and quality control measures for the combined 
mailing.
    d. The expected date of the first mailing.
    e. A sample of the standardized documentation.

26.2.2 Denial

    If the application is denied, the mailer or consolidator may file 
at a later date, or submit additional information needed to support the 
request.

26.2.3 Termination

    An authorization may not exceed 2 years. Business Mailer Support 
may take action to terminate an authorization at any time, by written 
notice, if the mailer does not meet the standards.

26.3 Minimum Volume

    The following minimum volume standards apply:
    a. For combined mailings prepared under 26.1a, more than one 
Periodicals publication, or edition of a publication, are combined to 
meet the required minimum volume per bundle, sack, or tray for the rate 
claimed.
    b. For combined mailings prepared under 26.1b, the minimum volume 
requirements in 22.0, 23.0, 201.3.0, or 25.0 apply for the rate 
claimed.
    c. For copalletized mailings prepared under 26.1c, the minimum 
volume requirements for pallets in 705.8.5.3 apply for the rate 
claimed.

26.4 Labeling

    Mailers must label all containers in a combined mailing as either 
``NEWS'' (see 21.1.3) or ``PER'' as follows:
    a. If at least 51% of the total number of copies in the combined 
mailing can qualify for ``NEWS'' treatment then all containers in the 
mailing are labeled ``NEWS,'' unless the mailer chooses to use ``PER.''
    b. If less than 51% of the total number of copies in a combined 
mailing can

[[Page 56619]]

qualify for ``NEWS'' treatment then all containers in the mailing are 
labeled ``PER.''

26.5 Documentation

    Each mailing must be accompanied by documentation meeting the 
standards in 17.0, as well as any additional mailing information 
requested by the USPS to support the postage claimed (such as 
advertising percentage and weight per copy). The following additional 
standards apply:
    a. Presort documentation required under 708.1.0 must show the total 
number of addressed pieces and total number of copies for each 
publication and each edition in the combined mailing claimed at the 
carrier route, 5-digit, 3-digit, and basic rates. The mailer also must 
provide a list, by 3-digit ZIP Code prefix, of the number of addressed 
pieces for each publication and each edition claimed at any destination 
entry discount.
    b. Copalletized mailing documentation must be presented by each 
title and version, segment, or edition in the mailing, or by codes 
representing each title and version, segment, or edition. The 
documentation must include presort and pallet reports showing how the 
copalletized pieces are prepared and where they will be entered.

26.6 Postage Statements

    Mailers must prepare postage statements for a combined mailing as 
follows:
    a. Copy weight and advertising percentage determine whether 
separate postage statements are required for editions of the same 
publication:
    1. If the copy weight and advertising percentage for all editions 
of a publication are the same, mailers may report all the editions on 
the same postage statement or each edition on a separate postage 
statement.
    2. If the copy weight or the advertising percentage is different 
for each edition of a publication, mailers must report each edition on 
a separate postage statement.
    b. For a combined mailing prepared under 26.1a, mailers must 
prepare a separate postage statement that claims all applicable per 
piece and per pound charges for each publication or edition except as 
provided in 26.2.5a. The mailer must annotate on, or attach to, each 
postage statement, the title and issue date of each publication or 
edition and indicate that the pieces were prepared as part of a 
combined mailing under 26.1a.
    c. For mailings under 26.1b, mailers must prepare a separate 
postage statement claiming the applicable per pound charges for each 
publication or edition in the combined mailing except as provided in 
26.2.5a. The mailer must annotate on, or attach to, each postage 
statement, the title and issue date of each publication or edition and 
indicate that the copies were prepared as part of a combined mailing 
under 26.1b. The per piece charges must be claimed as follows:
    1. If all copies in the combined mailing are eligible for the 
Classroom or Nonprofit discount, or if all copies are not eligible for 
the Classroom or Nonprofit discount, mailers may claim the per piece 
charges only on the postage statement for the publication that contains 
the highest amount of advertising.
    2. If a portion of the copies in the combined mailing are eligible 
for the Classroom or Nonprofit discount and a portion are not eligible, 
mailers may claim the per piece charges only on the postage statement 
for the publication that contains the highest amount of advertising and 
is not eligible for the Classroom or Nonprofit discount. The Classroom 
or Nonprofit per piece discount must not be claimed.
    d. For copalletized mailings under 26.1c, mailers must prepare a 
separate postage statement for each publication in the mailing. 
Mailings consisting of different editions or versions of the same 
publication must be accompanied by one consolidated postage statement 
and a register of mailings.

26.7 Postage Payment

    Each mailing must meet the postage payment standards in 16.0. For 
copalletized mailings under 26.1c, mailers must pay postage at the post 
office serving the facility where consolidation takes place, except 
that postage for publications authorized under the Centralized Postage 
Payment (CPP) system may be paid to the Pricing and Classification 
Service Center (see 608.8.4.1 for address).

26.8 Deposit of Mail

    Each publication in a combined mailing must be authorized for 
original entry or additional entry at the post office where the mailing 
is entered. For copalletized mailings under 26.1c, mailers must enter 
each mailing at the post office serving the facility where 
consolidation takes place.
* * * * *

28.0 Destination Entry Rate Eligibility

28.1 Basic Standards

28.1.1 Rate Application

[Revise 28.1.1 to eliminate the pallet discounts and add the new 
container rate as follows:]

    Outside-County addressed pieces may qualify for destination area 
distribution center (DADC) or destination sectional center facility 
(DSCF) rates under 28.2 or 28.3. Carrier route rate addressed pieces 
may qualify for destination delivery unit (DDU) rates under 28.4. 
Outside-County pieces are subject to the Outside-County container rate 
in 1.1.3 or 1.2.3. For all destination entry rate pieces:
    a. Only one destination entry discount may be claimed for each 
addressed piece.
    b. An individual bundle, tray, sack, or pallet may contain pieces 
claimed at different destination entry rates.
    c. In-County carrier route rate addressed pieces may qualify for 
the DDU discount under 28.4.
    d. The advertising and nonadvertising portions may be eligible for 
DADC, DSCF, or DDU pound rates based on the entry facility and the 
address on the piece.
* * * * *

28.2 Destination Area Distribution Center

* * * * *

28.2.3 Rates

[Revise 28.2.3 to reflect the new nonadvertising rate structure as 
follows:]

    DADC rates include a per piece discount off the addressed piece 
rate, a nonadvertising pound rate, and, if applicable, an advertising 
pound rate.

28.3 Destination Sectional Center Facility

* * * * *

28.3.3 Rates

[Revise 28.3.3 to reflect the new nonadvertising rate structure as 
follows:]

    DSCF rates include a per piece discount off the addressed piece 
rate, a nonadvertising pound rate, and, if applicable, an advertising 
pound rate.

28.4 Destination Delivery Unit

* * * * *

28.4.3 Rates

[Revise 28.4.3 to reflect the new nonadvertising rate structure as 
follows:]

    DDU rates for Outside-County include a per piece discount off the 
addressed

[[Page 56620]]

piece rate, a nonadvertising pound rate, and, if applicable, an 
advertising pound rate. DDU rates for In-County consist of a per piece 
discount off the addressed piece rate and a pound charge.
* * * * *

708 Technical Specifications

[Change the terminology from ``irregular'' parcels to ``nonmachinable'' 
parcels and from ``IRREG'' to ``NON MACH'' for parcel preparation 
throughout 708.]

1.0 Standardized Documentation for First-Class Mail, Periodicals, 
Standard Mail, and Flat-Size Bound Printed Matter

* * * * *

1.2 Format and Content

* * * * *
[Revise item c1 as follows:]

    1. Tray/sack sortation level. Periodicals documentation must also 
show the total number of each type of container in the mailing.
* * * * *
[Revise item c3 as follows:]

    3. The number of pieces for each 5-digit ZIP Code in 5-digit/scheme 
bundles or trays; for each 3-digit ZIP Code in 3-digit/scheme bundles 
or trays; for each 3-digit/scheme in (A)ADC bundles or trays; for each 
(A)ADC in mixed (A)ADC bundles or trays (or, for Periodicals, origin 
mixed ADC trays). For automation-rate mailings prepared under the no 
overflow option, the number of pieces in the next higher level tray in 
lieu of overflow trays. For ECR letters prepared under 245.6.0, the 
number of pieces in carrier routes within full trays. For automation 
flats, regular nonautomation presort mail, and ECR Standard Mail, the 
number of pieces in each bundle level and presort destination.
* * * * *

1.3 Rate Level Column Headings

* * * * *
[Delete the ``Carrier Route'' entry in item a. Revise the ``3/5'' and 
``Basic'' entries as follows:]

------------------------------------------------------------------------
                  Rate                             Abbreviation
------------------------------------------------------------------------
 
                              * * * * * * *
5-Digit [Standard Mail flats]...........  5B
3-Digit [Standard Mail flats]...........  3B
ADC [Standard Mail flats]...............  AB
Mixed ADC [Standard Mail flats].........  MB
 
                              * * * * * * *
------------------------------------------------------------------------

[Delete the ``3/5'' entry in item b. Revise the ``5-Digit,'' ``3-
Digit,'' and ``Basic'' entries in item b as follows:]

------------------------------------------------------------------------
                  Rate                             Abbreviation
------------------------------------------------------------------------
 
                              * * * * * * *
5-Digit [Standard Mail letters;           5D
 Periodicals letters, flats, and
 parcels].
3-Digit [Standard Mail letters;           3D
 Periodicals letters, flats, and
 parcels].
ADC [letters/cards and flats]...........  AD
Mixed ADC [letters/cards and flats].....  MD
 
                              * * * * * * *
------------------------------------------------------------------------

[Delete the ``Basic Automation'' entry in item c.]
* * * * *

1.4 Sortation Level

* * * * *
[Revise the ``5-Digit Scheme'' entry as follows:]

------------------------------------------------------------------------
             Sortation level                       Abbreviation
------------------------------------------------------------------------
 
                              * * * * * * *
5-Digit Scheme [barcoded and machinable   5DGS
 letters].
 
                              * * * * * * *
------------------------------------------------------------------------

[Revise the heading of 5.0 as follows:]

5.0 Barcoding Standards for Parcels and Not Flat-Machinable Pieces

5.1 Basic Requirements for Postal Routing Barcodes.

[Revise 5.1 as follows:]

    Mailers may use a postal routing barcode on parcels and Not Flat-
Machinable pieces that meet the eligibility requirements in 443.1.1 for 
First-Class Mail, 443.4.4 and 443.5.5 for Standard Mail, 453.3.1 for 
Parcel Post, 463.4.1 for Bound Printed Matter, 473.3.4 for Media Mail, 
or 483.3.4 for Library Mail. Each parcel must bear a properly prepared 
UCC/EAN Code 128 barcode symbology as described in 5.3 that accurately 
represents the correct ZIP Code or ZIP+4 code of the delivery address. 
For information on barcode placement for parcels, see 402.4.0.
* * * * *

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6.0 Barcoding Standards for Container Labels

6.1 Basic Standards--Tray and Sack Labels

6.1.1 Use

* * * * *

Exhibit 6.1.4 3-Digit Content Identifier Numbers

[Revise the content identifier numbers for First-Class Mail automation 
letters, Enhanced Carrier Route Standard Mail letters, and Not Flat-
Machinable pieces.]
* * * * *

7.0 Optional Endorsement Lines (OELs)

7.1 OEL Use

7.1.1 Basic Standards

* * * * *

Exhibit 7.1.1 OEL Formats

[Delete the example for Carrier Route--Automation (First-Class Mail and 
Standard Mail).]
* * * * *

8.0 Carrier Route Information Lines

8.1 Basic Information

[Delete reference to First-Class Mail as follows:]

    Bundles for individual carrier routes, rural routes, highway 
contract routes, post office box sections, or general delivery units 
must be prepared with facing slips under 245.2.11 for Standard Mail 
letters, 345.2.14 for Standard Mail flats, 365.2.13 for Bound Printed 
Matter flats, 445.2.12 for Standard Mail parcels, 465.2.12 for Bound 
Printed Matter parcels, and 707.19.16 for Periodicals, optional 
endorsement lines under 7.0, or carrier route information lines under 
8.2. These standards apply to Carrier Route Periodicals, Enhanced 
Carrier Route Standard Mail, and Carrier Route Bound Printed Matter 
mailings. Carrier route information lines may be on all pieces in a 
mailing, regardless of presort level.
* * * * *

709 Experimental Classifications and Rates

* * * * *
[Delete 3.0, Outside-County Periodicals Copalletization Drop-Ship 
Classification; 4.0, Outside-County Periodicals Copalletization Drop-
Ship Discounts for High-Editorial, Heavy-Weight, Small-Circulation 
Publications; and 5.0, Priority Mail Flat-Rate Box. Renumber remaining 
sections 6.0 and 7.0 as new 3.0 and 4.0. The experimental 
copalletization discounts expire and are replaced by the new rate 
structure for Periodicals mail in 707. The Priority Mail Flat-Rate Box 
becomes a permanent offering in 123. We provide the proposed rates and 
fees for all remaining experimental services in ``Rates and Fees'' at 
the end of this notice, after all of the proposed mailing standards.]
* * * * *
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes if our proposal is adopted.

Neva R. Watson,
Attorney, Legislative.
BILLING CODE 7710-12-P

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[FR Doc. 06-7751 Filed 9-27-06; 8:45 am]
BILLING CODE 7710-12-C