[Federal Register Volume 72, Number 188 (Friday, September 28, 2007)]
[Rules and Regulations]
[Pages 55055-55058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-19151]


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POSTAL SERVICE

39 CFR Part 111


New Move Update Standards for First-Class Mail and Standard Mail

AGENCY: United States Postal Service.

ACTION: Final rule.

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SUMMARY: The Postal ServiceTM is extending its effort to 
improve the percentage of deliverable mail by revising Move Update 
standards in the Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM). The Move Update standards provide ways for 
mailers to reduce the number of mailpieces that require forwarding or 
return by the periodic matching of a mailer's address records with 
customer-filed change-of-address orders. Our final rule includes the 
following changes related to Move Update processing: increase the

[[Page 55056]]

minimum frequency of Move Update processing from 185 days to 95 days 
prior to the date of mailing and extend the revised Move Update 
requirement to include all Standard Mail.

EFFECTIVE DATE: November 23, 2008.

FOR FURTHER INFORMATION CONTACT: Charles B. Hunt, 901-681-4651; or Bert 
Olsen, 202-268-7276.

SUPPLEMENTARY INFORMATION: On May 23, 2007, we published a proposed 
rule in the Federal Register (72 FR 28908-28911), about two 
initiatives: (1) Extending the Move Update requirement to all Standard 
Mail and, (2) increasing the minimum frequency of Move Update 
processing from 185 days to 95 days prior to the date of mailing. The 
revised timeframe also will apply to all pieces in Standard Mail 
mailings. The proposed notice also invited public comment concerning 
the changes. The Postal Service received eight customer comments on the 
proposals.
    We believe that the revised standards in this final rule are 
crucial to the continued vitality of the postal system as well as the 
business interests of mailers. In Fiscal Year 2004 the Postal Service 
handled 9.7 billion pieces of Undeliverable-as-Addressed Mail (UAA) 
mail at a cost of $1.979 billion dollars. This change will result in 
better address quality by removing incorrectly addressed pieces from 
subsequent mailings, which will reduce UAA mail.
    In cooperation with the mailing industry, we are committed to 
reducing UAA mail volume in order to create and maintain a cost-
efficient mailstream. Over the years, we have invested heavily in 
creating an automated mailstream to help drive costs out of the 
delivery system. However, an efficient automated mailstream works best 
when mailpieces have complete, correct, and current addresses. As 
discussed in the proposed rule, revisions to the Move Update standard 
are needed to improve the percentage of deliverable addresses for 
mailings entered at discounted rates. High quality addressing, best 
possible depth of ZIP+4 Codes, and accurate barcodes that result in the 
delivery of the mailpiece to the intended recipient in an efficient 
manner, should be primary tools that mailers use to reduce UAA mail 
volume.
    In addition to revisions to DMM standards, the proposed rule also 
addressed the timing of the changes. When the Move Update requirement 
for First-Class Mail was instituted in 1997, a 9-month readiness period 
was provided. The Postal Service recognizes the magnitude of the 
adjustments to be made by the mailing industry to implement the 
revisions in this notice and believes that an 18-month period from the 
date of proposed rulemaking notice (May 23, 2007) to implementation of 
the changes provides ample time. The Postal Service also believes that 
the changes improve the overall cost effectiveness of mail delivery and 
contribute to rate stability and do not create unreasonable barriers to 
discount rate qualifications.
    Part A of this final rule summarizes the new requirements and 
provides an analysis of the eight comments received to the Proposed 
Rule Notice. Part B contains the text of the proposed DMM standards.

Part A

1. Move Update Requirement for All Standard Mail

    The Move Update standard, which previously applied only to First-
Class Mail, will be extended to include all Standard Mail. A key reason 
for this extension is that one of the conclusions of an independent 
study of the cost, volume, and characteristics of UAA mail pointed out 
that mail entered as Standard Mail accounted for 62.8 percent of all 
UAA mail volume.
    Two commenters expressed full support for the proposed expansion of 
the Move Update requirement beyond presorted and automation rate First-
Class Mail to Standard Mail. However, several commenters voiced 
concerns or made alternative recommendations regarding the proposed 
expansion.
    One commenter voiced concern regarding the difficulty of complying 
with the Move Update requirement for small local businesses and 
nonprofit organizations. The Postal Service feels that there are many 
methods mailers can use in order to qualify and make this fit any 
business model. The list of authorized methods upon implementation of 
these requirements will include the following:

NCOALink processing
FASTforward MLOCR processing (for letters)
Address Change Service (ACS)
On-piece ancillary service endorsements, except ``Forwarding Service 
Requested''

    Additionally, two commenters proposed postponing implementation 
until the benefits of the recent CASSTM Cycle L changes, 
which were effective August 1, 2007, are realized. CASS Cycle L 
requires the integration and use of Delivery Point Validation 
(DPVTM) and Locatable Address Conversion System 
(LACSLink TM) as part of CASS certification and processing 
in order for mailers to be eligible for automation discounts. Most UAA 
mail is attributed to Standard Mail move-related reasons. CASS Cycle L 
changes do not affect move-related UAA problems.
    Another commenter expressed concern that the alternative Move 
Update method was not listed as a stand-alone option to meet the Move 
Update requirement for Standard Mail. The alternative method is allowed 
for First-Class Mail due to mailer's concerns about incorporating 
change-of-address information into their mailing lists for mailpieces 
containing personal information. Therefore, the Postal Service does not 
consider alternative methods applicable to Standard Mail. However, 
addresses that have been processed through any Move Update method, 
including alternative methods for First-Class Mail, automatically meet 
the Move Update standard for Standard Mail. And lastly, one commenter 
asked if addresses received directly from their customers or clients 
may be claimed within a mailing at the First-Class Mail or Standard 
Mail discounted rates. The answer is yes, if mailed within the first 
185 days of acquiring the address. When this final rule is implemented, 
the current requirement to perform Move Update processing within 185 
days before mailing will be changed to 95-days.
    As information, in addition to the four authorized Move Update 
methods listed above, addresses utilizing any of the three alternative 
addressing formats in DMM 602.3.0 (for example, ``John Doe or Current 
Resident,'' ``Occupant,'' ``Postal Customer'' etc.) will not be subject 
to the Move Update standard.

2. Frequency of Use of Move Update Processing

    The Postal Service will increase the minimum frequency of Move 
Update processing from 185 days to 95 days prior to the date of mailing 
for First-Class Mail and for Standard Mail.
    Two commenters voiced general support for the proposal, but 
expressed concerns about the 95-day window for processing addresses. 
One suggested keeping Move Update processing for First-Class Mail at 
185 days and requiring Move Update processing for Standard Mail at an 
annual interval. The other commenter suggested requiring Move Update 
processing within 120 days instead of 95 days, asserting that the 
reduced window for processing will have a negative effect due to the 
planning cycles in use by many mailers.
    We understand that certain operational changes may be necessary for 
the mailing industry to implement this proposal. However, the UAA mail 
problem is of such magnitude that it is

[[Page 55057]]

in the best interests of all stakeholders to modify current practices 
in order to mitigate the problem. We also recognize that some mailers 
who are successfully reducing UAA mail within their operations have 
already set quarterly production cycles for their Move Update and 
Address Matching processing.
    Reducing the processing window from 185 days to 95 days prior to 
the mailing date will lessen the effect of the natural deterioration of 
address currency, resulting in a significant decrease in UAA volume and 
the costs associated with the redirecting, re-handling, and disposing 
of mail.

Part B

    Effective November 23, 2008, we will adopt the following amendments 
to the Mailing Standards of the United States Postal Service, Domestic 
Mail Manual (DMM), incorporated by reference in the Code of Federal 
Regulations. See 39 CFR 111.1., 111.4.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

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

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

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

0
2. Revise the following sections of the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:
* * * * *

200 Discount Letters and Cards

* * * * *

230 First-Class Mail

233 Rates and Eligibility

* * * * *

3.0 Basic Standards for First-Class Mail Letters

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a in 3.5.1 as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.5.2.
* * * * *
    [Revise item c in 3.5.1 as follows:]
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing at any class of mail, is updated with an 
approved method in 3.5.2, and the same address is used in a First-Class 
Mail mailing within 95 days after the address has been updated.
* * * * *

240 Standard Mail

243 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Letters

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records with customer-filed 
change-of-address orders received and maintained by the USPS. For the 
purposes of this standard, ``address'' means a specific address 
associated with a specific occupant name. Addresses subject to the Move 
Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing for any class of mail, is updated with an 
approved method in 3.9.2, and the same address is used in a Standard 
Mail mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOALink).
    c. FASTforward MLOCR processes if used each time before mail entry 
(for letter mail only). If a mailpiece that initially uses FASTforward 
MLOCR processing is rejected and then entered into a Direct View 
Encoding Desk (DVED) operation (or similar system), the piece does not 
meet the Move Update standard. The name and address information on the 
piece must then be processed through a FASTforward RVE system to meet 
the Move Update standard. FASTforward RVE processes also meet the Move 
Update standard if used each time before mail entry.
    d. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *

300 Discount Flats

* * * * *

330 First-Class Mail

333 Rates and Eligibility

* * * * *

3.0 Eligibility Standards for First-Class Mail Flats

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a in 3.5.1 as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.5.2.
* * * * *
    [Revise item c in 3.5.1 as follows:]
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing for any class of mail, is updated with an 
approved method in 3.5.2, and the same address is used in a First-Class 
Mail mailing within 95 days after the address has been updated.
* * * * *

340 Standard Mail

343 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Flats

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records

[[Page 55058]]

with customer-filed change-of-address orders received and maintained by 
the USPS. For the purposes of this standard, ``address'' means a 
specific address associated with a specific occupant name. Addresses 
subject to the Move Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing for any class of mail, is updated with an 
approved method in 3.9.2, and the same address is used in a Standard 
Mail mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOALink).
    c. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *

400 Discount Parcels

* * * * *

430 First-Class Mail

433 Rates and Eligibility

* * * * *

3.0 Basic Standards for First-Class Mail Parcels

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a in 3.5.1.as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.6.2.
* * * * *
    [Revise item c in 3.5.1 as follows:]
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing at any class of mail, is updated with an 
approved method in 3.6.2, and the same address is used in a First-Class 
Mail mailing within 95 days after the address has been updated.
* * * * *

440 Standard Mail

443 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Parcels

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records with customer-filed 
change-of-address orders received and maintained by the USPS. For the 
purposes of this standard, ``address'' means a specific address 
associated with a specific occupant name. Addresses subject to the Move 
Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece, in a mailing for any class of mail, is updated with an 
approved method in 3.9.2, and the same address is used in a Standard 
Mail mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOA\Link\).
    c. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *

Neva Watson,
Attorney, Legislative.
 [FR Doc. E7-19151 Filed 9-27-07; 8:45 am]
BILLING CODE 7710-12-P