[Federal Register Volume 72, Number 243 (Wednesday, December 19, 2007)]
[Rules and Regulations]
[Pages 72216-72231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24365]



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Part III





Postal Service





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39 CFR Parts 121 and 122



Modern Service Standards for Market-Dominant Products; Final Rule

  Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / 
Rules and Regulations  

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POSTAL SERVICE

39 CFR Parts 121 and 122


Modern Service Standards for Market-Dominant Products

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: The Postal ServiceTM establishes modern service 
standards for its market-dominant products. Section 301 of the Postal 
Accountability and Enhancement Act, Public Law 109-435, 120 Stat 3198 
et seq. (December 20, 2006) requires the Postal Service, after 
consultation with the Postal Regulatory Commission (PRC), to establish 
by regulation within a year of its enactment, a set of modern service 
standards for its market-dominant products. This notice responds to 
that requirement by establishing the required regulations.

DATES: Effective date: December 19, 2007. For information on 
implementation, see the SUPPLEMENTARY INFORMATION section below.

FOR FURTHER INFORMATION CONTACT: Jeffrey C. Williamson, Manager, 
Network Development and Support, United States Postal Service, 475 
L'Enfant Plaza, SW., Washington, DC 20260, tel: 202-268-2065, e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: Within 6 months of today's date, the Postal 
Service, after consultation with the PRC, is required by section 302 of 
the Act to submit to Congress a plan that, inter alia, establishes 
service performance goals for its market-dominant products; describes 
changes to its processing, transportation, delivery and retail networks 
necessary to allow achievement of those goals; and describes its long-
term vision for rationalizing its infrastructure and workforce. 
Publication of these regulations today is a first step that allows the 
Postal Service to turn its attention to the requirements of section 302 
(120 Stat. 3219-21). The full extent of any realignment of the postal 
mail processing and transportation network to achieve these standards 
cannot be known until the Postal Service develops the plan required by 
Postal Accountability and Enhancement Act (PAEA) section 302. Thus, 
there will be a lag between the publication of these service standards 
and implementation of the related operational changes necessary to 
support them.
    Regulatory history: 72 FR 58946 (October 17, 2007).
    The remainder of this notice is divided into four sections. Section 
I highlights the general legal and procedural background for the 
establishment of market-dominant product service standard regulations. 
Section II summarizes and explains revisions that the Postal Service 
has made to the regulations proposed in its October 17, 2007, Federal 
Register solicitation in response to the PRC's subsequent market-
dominant postal products designations. Section III summarizes the 
Postal Service's establishment of service standards for special 
services that the PRC recently has designated as market-dominant, and 
explains corrections and clarifications to its originally proposed 
regulations. Section IV summarizes and discusses many of the comments 
received in response to the October 17, 2007, solicitation, and any 
resulting amendments, clarifications or corrections to the proposed 
regulations. Section V contains the final regulations and explains how 
those regulations achieve the objectives of 39 U.S.C. 3691(b)(1), and 
reflect consideration of the factors of 39 U.S.C. 3691(c).

I. Background

    The establishment of modern service standards for market-dominant 
postal products is the first in a series of related mandates in 
sections 301 and 302 of the Postal Accountability and Enhancement Act 
(hereinafter, the ``PAEA'' or ``Postal Law of 2006'' or the ``Act''). 
Section 301 requires the Postal Service to establish modern service 
standards for its market-dominant products within a year of the law's 
December 20, 2006, enactment. Section 302 mandates that, 6 months after 
the establishment of those modern service standards, the Postal Service 
must submit to Congress a plan that reflects the establishment of 
performance goals and includes a description of the changes to its 
networks deemed necessary to meet those goals.
    As codified in 39 U.S.C. 3691(a), PAEA section 301 requires the 
Postal Service to consult with the PRC before establishing modern 
service standards for its market-dominant products.\1\ The extensive 
service standard consultations that took place between the two agencies 
earlier this year are summarized at 72 FR 58948 (October 17, 2007). 
Based upon subsequent consultations with the PRC regarding service 
performance measurement under PAEA section 301 (as codified in 39 
U.S.C. 3691(b)(1)(D) and (b)(2)), the Postal Service also has requested 
the PRC's approval of proposed systems for the measurement of service 
standard achievement for its market-dominant products.\2\
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    \1\ By operation of 39 U.S.C 410(a), the Postal Service is 
exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding 
proposed rule makings. Nevertheless, the Postal Service invited 
public comment on its proposed market-dominant product service 
standard regulations. See 72 FR 58946 et seq. (October 17, 2007).
    \2\ The Postal Regulatory Commission has initiated a docket to 
solicit public comments regarding the details of the measurement 
systems proposed by the Postal Service. See PRC Docket No. PI2008-1, 
Notice of Request for Comments on Service Performance Measurement 
Systems for Market Dominant Products (December 4, 2007) at http://www.prc.gov.
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II. New Service Standard Determinations Resulting From Subsequent PRC 
Administrative Rulings

    Under the terms of 39 U.S.C. 3621(a), 39 U.S.C. 3691(a) requires 
the establishment of modern service standards for the following: First-
Class Mail[supreg] letters and sealed parcels, First-Class Mail cards, 
Periodicals, Standard Mail[supreg], Single-Piece Parcel Post[supreg], 
Media Mail[supreg], Bound Printed Matter, Library Mail, Special 
Services and Single Piece First-Class Mail International.\3\ The Postal 
Service's October 17, 2007, solicitation of public comment on its 
proposed market-dominant product service standards reflected this list.
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    \3\ Single-Piece Parcel Post, Media Mail, Bound Printed Matter, 
and Library Mail are separate under the terms of section 3621(a). 
The service standards for these types of mail, historically, have 
been the same. For as long as that remains the case, and for 
purposes of this notice and the service standards established below, 
these types of mail are collectively referred to as ``Package 
Services'' mail.
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    On November 9, 2007, the PRC clarified the market-dominant status 
of certain postal services. See 72 FR 63662 et seq. (November 9, 2007). 
The PRC's ruling designates the following as market-dominant: Inbound 
Single-Piece First-Class Mail International, Inbound Surface Parcel 
Post (at Universal Postal Union rates), International Certificate of 
Mailing, International Registered Mail, International Restricted 
Delivery, and International Return Receipt. See 72 FR 63682-85. As 
demonstrated below, the final market-dominant service standard 
regulations established today reflect the Postal Service's careful 
consideration of the PRC's more recent market-dominant product 
designations.

A. Outbound and Inbound Single-Piece First-Class Mail International

    The PRC's ruling at 72 FR 63682-85 (November 9, 2007) clarified 
that any service standard for Outbound Single-Piece First-Class Mail 
International should apply to parcel-shaped pieces, and designated 
Inbound Single-Piece First-Class Mail as a separate market-

[[Page 72217]]

dominant product. Accordingly, service standards for Outbound Single-
Piece First-Class Mail International and Inbound Single-Piece 
International are being published in 39 CFR 121.1(f) and 39 CFR 
121.1(g), respectively. Both standards contain the same day ranges and 
business rules as domestic First-Class Mail in transit between the 3-
digit ZIP Code\TM\ area of the designated inbound International Service 
Center (ISC) to the 3-digit ZIP Code of the delivery address.

B. Inbound Surface Parcel Post (at UPU Rates)

    The PRC's ruling at 72 FR 63685 (November 9, 2007) designated 
Inbound Surface Parcel Post tendered at Universal Postal Union rates as 
a market-dominant product. Upon clearance through the Postal Service 
International Bulk Mail Center or International Service Center (ISC) 
and U.S. Customs, this inbound mail is processed, transported and 
delivered to its U.S. state or territorial delivery address in the same 
manner as domestic Parcel Post. Accordingly, the service standard day 
ranges and business rules for Inbound Surface Parcel Post (at UPU 
rates) established below in 39 CFR 121.4(a)(6) are the same as for 
domestic Parcel Post or other Package Services mail from the 3-digit 
ZIP Code area of the International Bulk Mail Center or ISC to the 3-
digit ZIP Code of the delivery address.

C. International Market Dominant Special Services

    At 72 FR 58964, the Postal Service explained why the establishment 
of a service standard for certain domestic market-dominant special 
services would be unnecessary, redundant or infeasible. The same logic 
holds for most of the international special services designated by the 
PRC as market-dominant at 72 FR 63699-700. It should be noted that 
certain international ancillary special services can be used with both 
market-dominant and competitive mail. The following discussion relates 
solely to international ancillary services used with market-dominant 
mail. Under the circumstances, the Postal Service interprets 39 U.S.C. 
3691(a) as not requiring the establishment of service standards for the 
following international special services, based upon their present 
characteristics.
1. International Certificate of Mailing
    At 72 FR 58964, the Postal Service explained the basis for not 
proposing a service standard for the completion of the issuance of 
Certificate of Mailing for domestic mail. The same reasoning applies to 
an International Certificate of Mailing purchased in connection with 
outbound international mail. The international certificate is provided 
to the sender by the Postal Service as an intrinsic element of the 
acceptance of the mailpiece for which it is purchased. The purchase of 
the certificate is ancillary to sending an Outbound Single-Piece First-
Class Mail International letter, flat or parcel, and does not affect 
the service standards otherwise applicable to the transit of those 
pieces from their domestic points of origin to their designated 
International Service Centers. Provision of the certificate at the time 
of mailing at acceptance completes the special service. Accordingly, 
the Postal Service sees no means or need for a standard measuring the 
timely completion of the provision of International Certificate of 
Mailing service.
2. International Registered Mail
    International Registry service provides added security for a 
mailpiece from acceptance to delivery, and indemnity in case of loss or 
damage in transit. This ancillary service, however, does not affect the 
in-transit service standard of a mailpiece for which it is purchased. 
Thus, from its origin to its designated International Service Center, 
Registered Outbound Single-Piece First-Class Mail International is 
subject to the same service standard as that same mail without Registry 
service. Likewise, from its designated International Service Center to 
its delivery by the Postal Service, Registered Inbound Single-Piece 
First-Class Mail International is subject to the same service standard 
as that same mail without Registry service. Accordingly, as with 
domestic market-dominant mail for which Registry service is purchased, 
the Postal Service has determined that there is no need to establish a 
separate service standard for the transit of International Registered 
Mail in the U.S. postal system.
    At 72 FR 58961-62, the Postal Service proposed a 24-hour service 
standard for online availability of domestic market-dominant product 
Registered Mail delivery scan data at http://www.usps.com. The Postal 
Service performs the same scanning in relation to the delivery of 
inbound international mail for which the sender has purchased Registry 
service from a foreign postal administration. Accordingly, for inbound 
international Registered Mail, the Postal Service is establishing the 
same 24-hour standard for the availability of delivery scan data.
    The Postal Service does not offer a tracking feature for Outbound 
Single-Piece First-Class Mail International. On this basis, the Postal 
Service finds it infeasible at this time to establish the same delivery 
scan data availability for these items.
3. International Return Receipt
    When international outbound or inbound hard-copy Return Receipts, 
which have been signed upon delivery, are in transit for any portion of 
their journey in the Postal Service mailstream, they travel though the 
U.S. postal network as First-Class Mail cards, subject to the same 
processing and delivery standards as other Single-Piece First-Class 
Mail International. Therefore, outbound international Return Receipts 
would have the same service standards as Outbound Single-Piece First-
Class Mail International; and inbound international Return Receipts 
would have the same service standards as Inbound Single-Piece First-
Class Mail International. The Postal Service explained why no 
independent service standards should be developed for the hard-copy 
Return Receipt portion of the domestic First-Class Mail. 72 FR 58964. 
Because hard-copy International Return Receipts are processed along 
with other Outbound and Inbound Single-Piece First-Class Mail 
International, the same logic applies to justify a determination that 
independent service standards need not be established for hard-copy 
International Return Receipts.
    At 72 FR 58963, the Postal Service explained the basis for its 
proposed establishment of a service standard for domestic electronic 
Return Receipt service in 39 CFR 122.1(a)(1), as reflected at 72 FR 
58970. That standard is based upon the Postal Service's ability to scan 
mailpieces during the delivery process and upload delivery information 
to its website for access by the sender. However, there is no 
equivalent electronic International Return Receipt service offering. 
Accordingly, there is no basis for establishing an international 
equivalent service standard.
4. International Restricted Delivery
    Like its domestic counterpart, International Restricted Delivery 
service is purchased subject to the explicit understanding that the 
requested delivery restriction is subject to availability. See 72 FR 
58964. At the time when Restricted Delivery service is purchased from 
the Postal Service for Outbound Single-Piece First-Class Mail, it 
cannot be known whether some delivery policy exception or limitation 
applicable to the delivery address in the jurisdiction of the 
destination foreign postal administration overrides the requested 
delivery restriction. Likewise,

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if the service is purchased from a foreign postal administration on 
inbound international mail, it cannot be known whether some Postal 
Service delivery policy exception may override the requested delivery 
restriction. Accordingly, as is the case with domestic Restricted 
Delivery service, the establishment of service standards for 
international Restricted Delivery service is unwarranted.
5. International Reply Coupon
    International Reply Coupon service (outbound and inbound) allows 
the sender to prepay a reply by purchasing reply coupons that are 
exchangeable for postage stamps by postal administrations in member 
countries of the Universal Postal Union. One coupon is exchangeable for 
a stamp or stamps representing the member country's minimum postage of 
an unregistered letter. Because the transaction is complete at the time 
of purchase of the coupon for outbound and at the time of redemption of 
the coupon for inbound, and no additional service is required, the 
Postal Service sees no means or need for a standard measuring the 
timely completion of this service. If mail for which the postage has 
been paid by means of an International Reply Coupon is processed by the 
Postal Service as an inbound or outbound market-dominant product, the 
postage payment method does not affect the service standard otherwise 
applicable to the transit of that mail.
6. International Business Reply Mail
    International Business Reply Mail service is an alternate postage 
payment method established for high-volume mail recipients who assume 
responsibility for the payment of postage on specially preprinted 
mailpieces that are delivered to them. It is similar to domestic 
Business Reply Mail in that the postage payment method does not affect 
the transit of such mail from its origin to its destination. From its 
point of entry into the United States Postal Service mailstream at an 
International Service Center (ISC) until it is delivered, inbound 
International Business Reply Mail has the same service standards as a 
comparable international mailpiece for which the postage is prepaid. As 
there is no justification for establishing independent service 
standards for domestic Business Reply Mail beyond those for domestic 
First-Class Mail,\4\ there also is no need to establish a separate 
service standard for international mail for which the Business Reply 
Mail postage payment method is employed.
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    \4\ See 72 FR 58964.
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III. Service Standard Proposals or Amendments Resulting From Subsequent 
Postal Service Administrative Determinations

    After publication of its October 17, 2007, Federal Register notice, 
the Postal Service continued to review the feasibility of its proposed 
service standards regulations. As explained below, the Postal Service 
has unilaterally determined that some substantive revisions to its 
proposed regulations are appropriate. The Postal Service also has made 
minor organizational changes or clarifications to the wording of the 
regulations.

A. Substantive Changes to Proposed Service Standards for Non-Contiguous 
States and Territories

1. The Alaska 995 Intra-SCF First-Class Mail Overnight Split
    As reflected in proposed 39 CFR 121.1, the Postal Service 
originally proposed that intra-Sectional Facility (SCF) First-Class 
Mail for all 3-digit ZIP Code areas of the state of Alaska would have a 
2-day service standard, with the exception of the 995 3-digit ZIP Code 
area, which would have an overnight standard. See 72 FR 58967. Further 
review has led the Postal Service to modify this proposal and retain a 
2-day First-Class Mail standard for part of the 995 3-digit ZIP Code 
area.
    To an extreme degree, the population and logistical infrastructure 
of the 995 3-digit ZIP Code intra-SCF area in the state of Alaska are 
heavily concentrated in the subordinate 5-digit ZIP Code service areas 
that include the city of Anchorage. An overnight service standard for 
all intra-SCF First-Class Mail in the 995 3-digit ZIP Code area would 
require the Postal Service to undertake extraordinary logistical 
obligations for the intra-SCF volume that is not either to or from the 
city of Anchorage, in order to meet that standard in every isolated 
corner of a vast service area in which roads and pockets of population 
often do not co-exist. For these reasons, 39 CFR 121.1(a) now reflects 
an operational split of the 995 3-digit ZIP Code service area that 
preserves the overnight standard where the intra-SCF mail is 
concentrated.
2. Reductions in other proposed day ranges.
    A comparison of the service standard day ranges originally proposed 
for origin-destination 3-digit ZIP Code pairs that include the states 
of Alaska or Hawaii, or the territories of Guam, Puerto Rico, or the 
U.S. Virgin Islands to the day ranges established today reveals that 
the Postal Service has reduced some service standard day ranges.\5\ 
These reductions result from additional refinements in logistical 
mapping for mail to and from these origins and destinations.
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    \5\ Compare the tables at 72 FR 58591-92 to 39 CFR part 121, 
Appendix A below in section IV.E.
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B. Inclusion of a Service Standard for Money Order Inquiry Service

    Money Order Inquiry service is important to postal customers 
seeking to determine whether money orders they have purchased from the 
Postal Service have been cashed. Subsequent to the purchase of a money 
order, customers may complete an inquiry form and pay the appropriate 
fee. At a centralized processing center, data from each form are 
computerized and transmitted to the inquiry data system. There, they 
are matched by the Postal Service against electronic banking 
transaction records obtained from the Federal Reserve System in order 
to determine whether the money order has been cashed and to provide the 
customer with a status report on the money order. Correspondence is 
sent to the customer with the status of the money order. If the money 
order has been cashed, a copy of the record of the banking transaction 
is included. As a modern service standard, the Postal Service proposes 
that the response to a Money Order Inquiry should be transmitted from 
its electronic inquiry system and dispatched no later than 15 business 
days (excluding designated postal holidays) after the date on which the 
Postal Service accepts the completed inquiry form and payment from the 
customer.

C. Additional Postal Designation of Market-Dominant Products

    Since the publication of its October 17, 2007, Federal Register 
notice, the Postal Service has proposed that the following two 
international special services also be designated as market-dominant, 
when used with market-dominant mail: Inbound International Insurance, 
and Customs Clearance and Delivery. PRC Docket No. RM2007-1, United 
States Postal Service Submission of Additional Mail Classification 
Schedule Information in Response to Order No. 43 (November 20, 2007).
1. Inbound International Surface Parcel Insurance Claims
    Inbound International Insurance is available for Inbound Surface 
Parcels tendered at Universal Postal Union

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rates. Purchase of this ancillary service for such parcels does not 
affect their transit in the U.S. mailstream. Accordingly, there is no 
need to establish in-transit service standards for Insured Inbound 
International Surface Parcels that are independent of the standards for 
uninsured pieces discussed above in section II.B.
    Under current Universal Postal Union procedures, an inquiry must be 
filed prior to any claims processing. The Universal Postal Union 
establishes time limits for inquiry and claims processing, but 
compliance with these time limits depends upon the exchange of 
information between postal administrations. The number of insured 
Inbound Surface Parcels at UPU rates is relatively small. The Postal 
Service has no control over the claims processing and information 
exchange response times of foreign posts, which vary. Therefore, under 
present circumstances, the Postal Service does not believe it feasible 
to establish an independent service standard for inbound international 
insurance claims processing.
2. Customs Clearance and Delivery Fee
    This service consists of the Postal Service collecting a fee from 
the recipient on each inbound package on which a customs duty or 
Internal Revenue Service tax is assessed. The Postal Service fee is 
accounted for by affixing postage-due stamps to the packages or to a 
postage-due bill and canceling. From the ISC or exchange office to the 
delivery unit, such mail has the same transit as other inbound 
international mail. Accordingly, there is no basis for establishing a 
separate service standard from the ISC or exchange office for the 
transit of pieces on which the Postal Service collects these fees or 
taxes. The fee or tax collection transaction at delivery is similar to 
the transactions at delivery that result in Collect on Delivery 
payment. Once the duty or tax is collected, no further service is 
required of the Postal Service. The Postal Service thus does not see 
any means or need for a standard measuring the speed with which the fee 
or tax is collected.

D. Minor Changes and Clarifications

    As originally proposed, the Postal Service's regulations divided 
the mail products and the special services products into parts 121 and 
122, respectively. Within part 121, all domestic products were 
addressed sequentially, followed by international mail. However, in the 
concurrent rulemaking through which the Postal Mail Classification 
Schedule is being reorganized, market-dominant domestic and 
international First-Class Mail products are grouped together, as are 
the market-dominant domestic and international Parcel Post products. 
See 72 FR 63699. To conform to the organization of the Mail 
Classification Schedule, proposed Sec.  121.5, which addressed Outbound 
Single-Piece First-Class Mail International, is being eliminated. 
Instead, the service standards for Outbound and Inbound Single-Piece 
First-Class Mail International, respectively, are now included as 
subsections (f) and (g) of Sec.  121.1, First-Class Mail. Likewise, a 
new subpart (c) is being added to Sec.  121.4, to address the PRC's 
recent designation of Inbound Surface Parcel Post (at UPU rates) as a 
market-dominant product.
    The Postal Service also is making clarifying changes in wording 
that are not prompted by the PRC's recent market-dominant product 
designations, nor the comments submitted in response to its October 17, 
2007, Federal Register notice. As an example, the service standard for 
the resolution of domestic Insurance Claims in proposed 39 CFR 122.1(b) 
is that the final agency decision be transmitted no later than 30 days 
after the claim is deemed to be complete. See 72 FR 58970. The Postal 
Service is amending that section to specify that the standard is 30 
calendar days. This clarification is made to avoid any misunderstanding 
that may result from the establishment of the 15 business day standard 
applicable to Money Order Inquiry service in 39 CFR 122.2(d). To 
further minimize any misunderstanding, the service standard for Address 
List Services in 39 CFR 122.2(b) is being amended to incorporate the 
use of the term business day instead of workday, with the understanding 
that Mondays through Fridays are counted as business days, excluding 
designated postal holidays.

IV. Comments

    The Postal Service received comments from 27 sources in response to 
its October 17, 2007 solicitation. They came from an individual mailer, 
commercial mail advertisers and printers, periodicals publishers and 
mailers, parcel shippers, nonprofit mailers, users of various postal 
special services, mailer trade associations, the Postal Regulatory 
Commission, and a United States Senator. Many of the comments expressed 
appreciation for the Postal Service's outreach process and its 
consideration of the various mailer proposals and concerns communicated 
during the comprehensive review of market-dominant product service 
standards that led to the publication of its October 17, 2007, Federal 
Register notice.\6\ The Postal Service, likewise, expresses its 
gratitude here to all who took the time and effort to constructively 
express their views and concerns, both before and in response to the 
Federal Register notice.
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    \6\ See 72 FR 58946 et seq. The Postal Service's customer 
outreach efforts are summarized at 72 FR 58947-58948.
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    The Postal Service has carefully considered all of the 
aforementioned comments. As will be demonstrated below, in some 
instances these comments have resulted in amendments, clarifications or 
corrections to the proposed regulations. Below, the Postal Service 
summarizes and discusses a number of the comments.
    Clarification of Terminology. One commenter sought an explanation 
of the term ``properly accepted,'' as used in the proposed regulations. 
The term is intended to refer to properly addressed mail that meets the 
requirements for acceptance at the time that the Postal Service either 
assumes custody or control of it from the mailer (i.e., at a postal 
bulk mail entry unit) before the applicable Critical Entry Time, or, 
where permitted, when it is dropped in an authorized depository (i.e., 
street corner collection box) before the posted daily last pickup time.
    Annual Review Process. At 72 FR 58967, the Postal Service indicated 
its intention to place a high priority on annual internal review of its 
market-dominant product service standard day ranges and business rules. 
There, the Postal Service indicated that it would use its discretion to 
determine if, when and how it might solicit public input as a part of 
such internal review. A number of commenters responded to the Postal 
Service's October 17, 2007, solicitation by requesting that the Postal 
Service commit to the establishment of formal procedures that would 
ensure mailer input during each annual service standard review process.
    The Postal Service greatly values customer input, and routinely 
solicits information through a variety of venues, including, but not 
limited to, mailer industry workgroups, customer surveys, and market 
research. Additionally, solicited or otherwise, postal customer service 
and operations managers routinely receive numerous comments that 
originate from market-dominant product mail senders and receivers, and 
users of special services, regarding their experiences and 
expectations. The Postal Service is committed to the review of such 
information during its

[[Page 72220]]

internal service standards review process. However, the Postal Service 
intends to reserve the right to exercise its discretion on a case-by-
case basis in determining if, how, and when to engage in either an 
informal dialogue with some customers or a formal solicitation of 
comments from all customers as part of that annual internal review 
process.
    Of course, when the Postal Service plans to pursue implementation 
of a change in a postal service that is at least substantially 
nationwide in scope, it will request an advisory opinion from the PRC 
under 39 U.S.C. 3661. In proceedings conducted under that section, the 
public is permitted to intervene, to request a hearing, to conduct 
discovery, and to file comments and testimony.
    Concerns about the Downgrading of Service. A large number of 
comments suggested that the proposed new service standards downgraded 
service in comparison to that received under the current standards. 
Some of these comments requested that the Postal Service continue to 
maintain the current standard where the expected number of days is less 
than what is proposed in the new service standards.
    The proposed modern service standards reflect the Postal Service's 
careful consideration and balancing of a number of important factors, 
which included customer wants and needs. The customer outreach 
conducted during the development of the modern service standards 
revealed that customers wanted standards that are reliable, consistent, 
realistic, and attainable, and that any proposed changes reflect 
sensitivity to the impact of increased postal costs on the rates that 
they pay.
    Current service standards for Periodicals, Standard Mail, and 
Package Services are based primarily on mail processing technology, 
transportation availability, and logistical assumptions of the early 
1970s, mapped to destination zones based on rudimentary ``great circle 
mile'' determinations; First-Class Mail standards are based on mail 
transportation availability and logistical planning tools that existed 
in the early 1990s. These standards reflect implementing criteria or 
``business rules'' \7\ that, to a very significant degree, are based 
upon mailing practices and postal operational and costing 
considerations that no longer reflect current realities. For some 
market-dominant products, even in the absence of any comprehensive 
system of service performance measurement, it is undisputed that the 
current standards create customer expectations that have long ceased to 
be consistent with the manner in which mail is being processed and 
transported between many origin-destination 3-digit ZIP Code pairs.
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    \7\ Business rules are the implementing criteria which determine 
the number of days-to-delivery between each of the approximately 
851,000 origin-destination 3-digit ZIP Code pair combinations in the 
postal network for each market-dominant mail class.
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    To develop modern service standards, the Postal Service carefully 
studied such factors as present-day mail transportation availability, 
actual highway mileage between facilities, and changes in mail entry 
practices and mailflows that reflect current mail processing facility 
functions, technology, economies and capabilities. A painstaking and 
comprehensive review process reasonably matched operational 
capabilities across the entire postal network with the wants and needs 
of the greatest number of postal customers. As is to be expected, in 
some cases, this resulted in different service standards than 
previously existed. The claim of one commenter that service standards 
have been lowered solely or primarily to save costs is without 
foundation.
    Another commenter suggested that the outer limit of service 
standards for Periodicals within the contiguous 48 states could be 
reduced from 9 to 7 days if other methods of transportation and more 
expedited mail dispatch protocols were implemented. More expeditious 
service standards tend to be more favorably received by mailers than 
standards that are less expeditious. Some of the changes established by 
the Postal Service today will raise customer expectations, by reducing 
the number of days in transit for some mail between specific 3-digit 
ZIP Code pairs. Likewise, some of the changes established today will 
lower customer expectations, by increasing the number of days for 
certain mail in transit between specific 3-digit ZIP Code pairs. The 
Postal Service understands the appeal of preserving existing service 
standards that are intended to reflect the availability of faster 
service. And, the Postal Service was cognizant of the current service 
standards as it contemplated making comprehensive, modernizing changes. 
However, the Postal Service also had to consider the impact that the 
wholesale preservation of ``faster'' standards for particular 3-digit 
ZIP Code pairs--in effect, the ``grand-fathering in'' of service 
standard day ranges and business rules adopted on the basis of criteria 
that are no longer useful--would have on its ability to fulfill the 
mandate that it achieve the objectives of subsection (b)(1) and 
consider the factors of subsection (c) of 39 U.S.C. 3691.
    The Postal Service is confident that its modern business rules and 
resultant service standard day ranges more accurately reflect current 
network capability and reasonably respond to the needs of all postal 
customers, even if it is impossible to satisfy each customer.
    Concerns About Service Consistency/``Tail of the Mail.'' Several 
commenters requested the establishment of service standards for mail 
that reaches its destination after its published service standard 
(otherwise known as ``tail of the mail''). The Postal Service's modern 
business rules and resultant service standards day ranges have been 
designed to reflect realistic operational capability across the entire 
postal network. Under these new standards, the Postal Service expects 
that the number of pieces reaching destinations after the prescribed 
service standard will be reduced. However, there will always be a small 
number of pieces that are not delivered within their service standard. 
Rather than establish additional benchmarks for mail not meeting its 
standard, the Postal Service prefers that its service standards reflect 
one goal for all mail within a market-dominant product designation, and 
that the degree to which mail is late be measured and reported to the 
PRC. This preference is reflected on pages 25, 41, 48, and 55 of the 
USPS Service Performance Measurement proposal referenced in the Notice 
of Request for Comments on Service Performance Measurement Systems for 
Market Dominant Products, PRC Order No. 48, Docket No. PI2008-1 
(December 4, 2007). As indicated in that proposal, the Postal Service 
plans to report data to the PRC regarding the late arrival of mail for 
each market-dominant mail product on a quarterly basis.
    Service Standards for Caller Service. Some commenters requested 
that standards be established for Caller Service. Caller Service 
provides an alternative means of receiving properly addressed mail at a 
postal facility call window or loading dock. See 72 FR 58962. As 
explained previously, the specific details and arrangements of Caller 
Service are individually negotiated between the customer and postal 
facility and can vary greatly among mail recipients at the same 
facility. Id. at 58964. The Postal Service has reviewed this matter in 
response to the comments filed. However, that review affirms the 
conclusion that, given the current flexible nature of the service, the 
desires expressed by customers could be better fulfilled

[[Page 72221]]

through individually negotiated arrangements, rather than a uniform 
service standard.
    Service Standards for Forwarded Mail and Change-of-Address. A 
number of commenters urge the establishment of service standards for 
mail that is forwarded to a new address for delivery. The Postal 
Service does not interpret 39 U.S.C. 3691 as requiring the 
establishment of standards for the completion of the numerous discrete 
operational functions associated with the transmission of mail within a 
particular market-dominant product designation from its origin to its 
destination. Accordingly, the Postal Service does not consider 
utilization of specific mail processing operations in forwarding 
market-dominant mail to constitute a distinct market-dominant product 
for which section 3691 requires consideration of the establishment of a 
service standard.\8\
---------------------------------------------------------------------------

    \8\ This is not to suggest that the Postal Service is averse to 
capturing additional operational data that would help it to better 
monitor its ability to efficiently and expeditiously forward and/or 
return undeliverable-as-addressed mail.
---------------------------------------------------------------------------

    That being said, the Postal Service's longstanding operational goal 
is for forwarded mail to travel from its intercept point in the 
mailstream to the new address in accordance with the service standard 
applicable from that intercept point's 3-digit ZIP Code area to the 3-
digit ZIP Code area of the new delivery address. The Postal Service has 
long recognized the importance of reducing the volume of undeliverable-
as-addressed mail that it processes. For that reason, the Postal 
Service has expended considerable resources over several decades to 
improve mail recipient access to change-of-address tools. At the same 
time, it also has invested even greater resources in a variety of 
mailer address quality improvement programs, and provided bulk mailers 
with resources and incentives to reduce the volume of undeliverable-as-
addressed mail that needs to be forwarded. Several tools and products 
are available to mailers to correct addresses or barcodes, and to 
update mailing lists that contain addresses of mail recipients who have 
moved. To improve address list quality, the Postal Service is upgrading 
Coding Accuracy Support System certification requirements. Customers 
can then correct non-matching addresses using Address Element 
Correction software. More frequent mailing list updates by bulk mailers 
is a vital component of any program to reduce undeliverable mail and 
the need for forwarding. New postal MoveUpdate policies requiring 
mailers to update customer information within 95 days of mailing will 
be effective for all classes of mail in November 2008.
    Once mail is in the postal system, new processes are available with 
the implementation of the Intelligent Mail[supreg] barcode, such as 
OneCode ACS TM, to provide efficient feedback to mailers 
regarding their undeliverable or forwarded mail, so that addresses can 
be corrected before the next mailing. Current innovative pricing for 
this electronic service encourages mailers to use Address Correction 
Service to improve the quality of their mailing lists, which can result 
in more effective mailings and less forwarded mail. These initiatives 
can improve automation performance, and will drive important changes in 
list management practices to increase address quality and reduce 
forwarded mail.
    On a networkwide basis, the Postal Service has recently deployed 
its Postal Automated Redirection System (PARS) technology, which can 
automatically intercept mailpieces addressed to recipients who have 
filed change-of-address information, and cause those pieces to be 
forwarded mid-stream to the recipient's new address. This should 
expedite the forwarding process, reduce the percentage of mail that 
reaches the original delivery unit before being forwarded, and reduce 
forwarding costs. The PARS infrastructure has also enabled more 
efficient processing of change-of-address forms submitted by customers. 
With nationwide deployment of the Change-of-Address Forms Processing 
System (CFPS), all change-of-address forms are now scanned through the 
CFPS and the images sent to three remote encoding centers for automated 
processing. PARS has automated the labor-intensive Address Change 
Service process. Now images are electronically sent to the National 
Customer Service Center where more than 360,000 address change 
notification cards are printed daily. To achieve more accurate and 
faster processing of address change service requests, customers are 
encouraged to use electronic change-of-address procedures that validate 
address data at the time it is entered.
    Notwithstanding the potential benefits of these programs and 
technologies, the Postal Service and mailers must work together more 
aggressively to improve address hygiene and reduce the volume of 
forwarded mail resulting from an increasingly mobile society. The 
volume of mail that requires forwarding is significant, as are the 
associated costs. And, under the new price cap ratemaking regime, 
reducing these volumes and costs will become an even more important 
matter of mutual interest for the Postal Service and mailers. 
Accordingly, there is more incentive than ever for the Postal Service 
and its customers to work together to drive the volume and costs of 
forwarded mail downward. The Postal Service looks forward to an even 
greater level of cooperation from those who bear the costs of this 
mail. The Postal Service will also continue to devote resources to 
reducing transit times for mail subject to forwarding.
    Requests for Different Standards Within a Class. Some commenters 
proposed the establishment of distinct service standards for different 
types of mail within existing market-dominant classes: For example, 
remittance mail, as distinguished from other First-Class Mail; parcels, 
as distinguished from flats, within Standard Mail; or in-county 
Periodicals, as distinguished from outside-county Periodicals. Still 
other commenters proposed that mailpieces of the same shape, but in 
different classes (Standard Mail vs. Package Services) be assigned the 
same service standards, even if that results in different service 
standards within a mixed-shape class.
    The Postal Service does not interpret 39 U.S.C. 3691 as necessarily 
prohibiting the establishment of different service standards for 
different types of mail within a particular market-dominant class. 
Nevertheless, the modern service standards established below reflect a 
continuation of the Postal Service's preference for a consistent set of 
service standards within a particular class for mail with the same 
origin-destination pattern, without additional intra-class service 
distinctions based on such factors as shape, content, or whether 
additional mail preparation is performed beyond the minimum required to 
qualify for a particular rate category, or to qualify for an exception 
to a local Critical Entry Time deadline. The comments reflect a 
disagreement among mailers who use the same market-dominant mail 
product regarding whether the Postal Service should reconsider that 
approach.
    The Postal Service considers it important to emphasize that there 
are finite limits in the level of service standard differentiation that 
can be effectively managed on the workroom floors of a complex 
logistical network. Proposals seeking to establish some of the 
suggested intra-class service standard distinctions would require the 
exploration of a host of mail processing operational issues and could 
potentially raise threshold classification and rate issues that are 
beyond the scope of the exercise mandated by 39 U.S.C. 3691(a). 
Accordingly, such proposals are not responded to or acted upon here.

[[Page 72222]]

    No matter how broad or narrow some inter-class service features or 
mailflow differences may be, mailers are expected to consider all 
inter-class differences, including service standards, in choosing 
whether to pay for a more or less expensive service. Mail 
classification and rate differences persist, however subtle any 
differences between the processing of Standard Mail flats and Bound 
Printed Matter flats, or the processing of Standard Mail parcels and 
Package Services parcels may be. Accordingly, the Postal Service is 
continuing the long-standing practice of applying the same standard to 
all mail within a particular market-dominant class, regardless of 
mailpiece shape, content, or preparation, and is establishing modern 
service standards that continue that practice.
    Service Standard for DBMC Containerized Rate Periodicals. One 
commenter observed that the proposed Periodicals service standards did 
not explicitly address the standards applicable to mail which qualifies 
for Destination Bulk Mail Center (DBMC) containerized rates. That 
oversight has been corrected in the final regulations.
    Availability of Delivery Scan Information. For a variety of market-
dominant special services, the Postal Service proposes that delivery 
scan data be available to customers online within 24 hours of the 
delivery scan. See 72 FR 58963. A few commenters requested that the 
standard for delivery scan data availability be reduced to less than 24 
hours. A 24-hour service standard was proposed because of variations in 
time zones and their impact on scanning, and data uploading and 
availability.
    Standard Mail Service Standard Day Ranges and ``In-Home'' Delivery 
Days.
    Some comments reflect concern that the proposed service standards 
for Standard Mail are too broad. For example, one commenter observes 
that, under the proposed modern standards, mail that receives a 
destination entry discount and is dropped at a destination BMC could 
have a service standard of up to 5 days. For the sake of clarity, the 
Postal Service emphasizes that the proposed standard for such mail is 
not ``up to'' 5 days, but exactly five days, taking into account the 
deferrable nature of such mail.
    Standard Mail users wishing to more specifically influence the 
exact date on which such mail is delivered routinely request that the 
Postal Service honor specific ``in-home'' delivery days or ``in-home'' 
delivery day ranges, regardless of the applicable standard. Local 
postal mail processing and delivery managers do attempt to honor 
requested ``in-home'' dates, but only as local mail processing and 
delivery plans permit. Several commenters requested that, as an 
alternative to its long-standing ``day-specific'' targets (such as, ``4 
days'' or ``5 days'') the Postal Service adopt Standard Mail ``day 
range'' service standard targets (such as, ``3-to-5 days'' or ``4-to-6 
days'').
    Such proposals are not being adopted here. They raise a variety of 
complicated postal mail processing and delivery issues, not to mention 
considerations of service performance measurement and accountability. 
Whether or not any differences among mailers or between mailers and the 
Postal Service on these issues are reconcilable requires further 
dialogue. In advance of the publication of its October 17, 2007, 
Federal Register notice, the Postal Service indicated that it was 
willing to engage with a mailing industry working group for that 
purpose. That willingness has not abated. Through appropriate media, 
the Postal Service will organize such an undertaking.
    Seasonal Adjustments for Destination-Entered Standard Mail Pieces. 
A few commenters requested seasonal adjustments in the service 
standards for destination-entered Standard Mail pieces. The Postal 
Service acknowledges that there are significant challenges inherent in 
trying to maintain high service levels when mail volumes surge, 
typically from the months of September to December. Nevertheless, the 
Postal Service continues to be persuaded that it is better to manage 
its operations on the basis of a consistent, year-round set of service 
standards, rather than to temporarily vary those service standards at 
different times of the year. A consistent standard helps to reinforce 
the applicable goal among all postal managers and employees engaged in 
processing, transportation and delivery. The transitioning of 
operational performance from one set of standards to another could 
result in less consistent service than desired. Accordingly, the Postal 
Service intends to preserve the long-standing practice, reflected in 
its proposed regulations, of maintaining year-round service standards. 
As indicated at 72 FR 58966, the Postal Service considers that seasonal 
adjustments of performance goals would seem to be more appropriate for 
consideration, in the context of establishing such goals under PAEA 
section 302, and will meet with customers to further discuss this 
issue.
    Service Standards by Specific 3-Digit ZIP Code. Some commenters 
requested that service standards applicable to parcels, whether they be 
Package Services or Standard Mail pieces, differ by specific 3-digit 
ZIP Code. Such proposals are not being adopted here, as this type of 
customization runs contrary to the application of standardized business 
rules to calculate consistent service standards.
    Service Standards to Non-Contiguous States and Territories. Several 
commenters expressed concern about the proposed service standards for 
mail to and from states and territories beyond the contiguous 48 
states.
    One commenter appears to express the concern that the proposed 
service standards for mail moving to and from non-contiguous states and 
territories reflects a lesser effort on the part of the Postal Service 
to procure transportation to move that mail than for mail in the 48 
contiguous states. To the contrary, mail to and from the non-contiguous 
states and territories reflect the stark differences between the 
availability of economical resources for the movement of mail to and 
from the non-contiguous states and territories than for mail moving 
among the contiguous 48 states.
    Rational operating plans that take into account the numerous 
logistical variables beyond the Postal Service's control will result in 
unavoidable differences between levels of service. In the contiguous 
states, the next truck is often available in a matter of hours. To and 
from the non-contiguous states and territories, the next appropriate 
cargo ship may not be available for several days or even a week. The 
establishment of longer service standard day ranges for mail to and 
from the non-contiguous states and territories reflects an attempt to 
better match the service standards to the operational realities of 
surface and air transportation.
    The same commenter expressed recognition of the challenges faced by 
the Postal Service, sometimes the carrier of only resort, in providing 
economical service beyond the contiguous 48 states. The Postal Service 
appreciates that recognition and is committed to using its annual 
internal service standards review process, as circumstances warrant, to 
explore opportunities to economically improve its use of available 
transportation to minimize service standard day ranges for mail to, 
from and within the non-contiguous states and territories.
    The commenter also expressed concern that the service standards for 
mail between the contiguous 48 states and the separate destinations of 
the state of Hawaii and the territory of Guam appear to be aggregated 
in a manner that has the result of substantially increasing the time in 
transit between Hawaii and the contiguous states. To the contrary, the 
standards for mail between the

[[Page 72223]]

contiguous 48 states and Guam (through Hawaii) are longer than the 
standards between Hawaii and the contiguous 48 states. In this area, 
the Postal Service opted for arguably over-aggressive standards between 
the contiguous 48 states and Guam to ensure a higher level of urgency 
in the handling of such mail than might be the case if a longer 
standard were established.
    The commenter also astutely observes several inadvertent omissions 
of references to the territory of Guam in the table at 72 FR 58591. A 
corrected table is being incorporated into the final service standard 
regulations.
    Critical Entry Times (CETs). A Critical Entry Time is the latest 
time a particular type of mail can be accepted by the Postal Service in 
order for it to undergo the processing and/or dispatch in downstream 
operations necessary for delivery within the service standard for that 
mail. This is more of a measurement issue than a standards issue, for 
the CET affects the start time for performance, not the length of the 
standard itself.
    Several commenters requested information on how local changes in 
CETs would be communicated to the mailer; how mailers can access CET 
data; how CETs are established; and how the Postal Service takes 
customer needs into account in said establishment. Commenters also 
expressed their opinions on how CETs should be set. The Postal Service 
is currently meeting with customers to discuss these and other issues, 
and is committed to developing a communications process.
    P.O. Box\TM\ Uptimes. As indicated in proposed 39 CFR 122.2, the 
proposed service standard for P.O. Box service is that mail be 
available for pickup no later than the daily ``uptime'' publicly posted 
at corresponding Post Office locations. See 72 FR 58970. One commenter 
requests that the proposed service standard regulation be amended to 
explain how ``uptimes'' are determined. As explained in the original 
Federal Register notice, ``uptimes'' are determined on the basis of 
local mail processing plans and standard operating procedures. See 72 
FR 58963. It is not reasonable to expect the service standard 
regulations to contain details of mail acceptance, processing and 
delivery operations, or the criteria that determine their application.
    Standards for the Improvement of Retail Access. A few commenters 
propose the establishment of service standards for certain aspects of 
postal transactions related to the entry of mail into the postal 
system, such as the acquisition of postage, calculation of correct 
postage for a given piece, the location and number of collection boxes 
and the last collection time of these boxes, and for time spent by 
customers waiting in line or otherwise waiting for window service at 
Post Office locations.
    The Postal Service strives to enhance retail access by providing 
prompt, efficient and economical service in a variety of ways. For 
example, to maximize the availability of postal window personnel for 
more complicated transactions or for the acceptance of accountable mail 
pieces, the Postal Service offers its customers alternative outlets for 
postage purchase transactions (by mail, phone or online at 
www.usps.com, via Automated Postal Centers in Post Office lobbies, and 
through non-postal commercial retail outlets). A wealth of retail 
customer service information also is available through www.usps.com and 
the Postal Service will continue to educate customers to take advantage 
of that resource.
    Purchasing postage stamps, philatelic items, or money orders, or 
requesting information from a knowledgeable window clerk, submitting a 
passport application, or waiting in line at a Post Office\TM\ 
location--in and of themselves--do not constitute market-dominant 
products for which the Postal Service is required to consider 
establishment of a service standard under 39 U.S.C. 3691. Accordingly, 
no nationwide standards are being established as a part of this 
rulemaking.
    The Postal Service will continue to invest resources in the 
management, optimal deployment, and training of its personnel, as well 
as the accessibility of information online, so as to minimize the 
length of time that customers spend in line at Post Office locations 
and to enhance general retail access. The Postal Service will continue 
to analyze customer comments and market research performed for the 
purpose of assessing and improving its customers' postal transaction 
experiences.
    In the same vein, in response to another commenter, the Postal 
Service also recognizes that local compliance with policies regarding 
the last pickup times for collection boxes maximizes the ability of 
household and small business customers to enter mail in a manner that 
gives it the best chance of being delivered within the applicable 
origin-destination service standard. The Postal Service takes customers 
concerns about such compliance seriously and will continue to monitor 
compliance with applicable operational policies.
    The Postal Service observes that section PAEA 302(d)(2) requires it 
to consult with the PRC and submit to Congress within six months from 
today a plan regarding the expansion and marketing of retail access to 
postal services. The Postal Service looks forward to those 
consultations and the development of that plan. However, such matters 
are beyond the scope of this rulemaking.
    Other Comments. While many of the comments addressed the substance 
of the proposed service standard regulations, others discussed matters 
that the Postal Service deems to be outside the scope of the proposed 
regulations, even if related to other aspects of sections 301 and 302 
of the PAEA generally. Such matters included the communication of the 
new standards (such as requests to publish the service standards on the 
Postal Service's public Web site, www.usps.com); service performance 
measurement, service performance goals, and reporting; and specific 
product requests and inquiries (such as a request that Delivery 
Confirmation\TM\ service be included on every parcel for no additional 
charge, a request for a change in handling hard-copy Return Receipts, 
the purpose of taggant ink on Certified Mail\TM\, and the proposed 
development of a CONFIRM[supreg] service system that alerts customers 
to system issues). Although these issues are not within the scope of 
the establishment of service standard regulations, all of these matters 
are important to the Postal Service. The Postal Service's decision not 
to acknowledge and or respond to a specific comment, or incorporate any 
particular suggestion into its service standard regulations, or to 
respond specifically to each such comment here should only be 
interpreted as a judgment that such matters are beyond the scope of its 
October 17, 2007 Federal Register solicitation and the task of 
establishing modern service standard regulations. This is not to imply 
that the above-referenced suggestions or inquiries lack merit, or that 
they are not currently being acted upon or will be acted upon.
    As indicated earlier, the full extent of any realignment of the 
postal mail processing and transportation network to achieve these 
standards cannot be known until the Postal Service, after consultation 
with the PRC, submits to Congress no later than 6 months from today its 
performance goals and the facilities plan required by PAEA section 302. 
Thus, there will be a lag between the establishment of these service 
standards and implementation of related operational changes that may be 
necessary to support them. In the meantime, the Postal Service is 
exploring numerous options regarding

[[Page 72224]]

the hardcopy and electronic publication and dissemination of 
information regarding the service standards established today.
    In conjunction with its October 17, 2007, Federal Register notice, 
the Postal Service made available online an electronic file detailing 
the modern service standards originally proposed for each origin-
destination 3-digit ZIP Code pair for First-Class Mail, Periodicals, 
Standard Mail and Package Services. As a first step in the 
dissemination of information about the modern service standards 
established today, the Postal Service has created an updated version of 
that electronic file based on the service standard day ranges and 
business rules changes adopted today. The file is now accessible online 
at http://ribbs.usps.gov/modernservicestandards.

V. The Proposed Modern Service Standards Reflect Consideration of 
Relevant Statutory Objectives and Factors

A. The Statutory Objectives

    In establishing modern market-dominant product service standards, 
the Postal Service is directed by 39 U.S.C. 3691(b)(1) to:

-- Enhance the value of postal services to both senders and recipients;
-- Preserve regular and effective access to postal services in all 
communities including those in rural areas or where Post Offices are 
not self-sustaining; and
-- Reasonably assure Postal Service customers delivery reliability, 
speed and frequency consistent with reasonable rates and best business 
practices.

120 Stat. 3218. Careful consideration was given to these objectives in 
the establishment of the service standard proposals listed below, as 
demonstrated in 72 FR 58964-58965.
    39 U.S.C. 3691(b) requires that market-dominant product service 
standard performance be measured by some objective external system, or 
by internal methods approved by the PRC under 39 U.S.C. 3691(b)(2). As 
indicated above, the Postal Service has submitted a plan for service 
performance measurement to the PRC for review. On December 4, 2007, the 
PRC initiated an administrative public inquiry docket for the purpose 
of soliciting comment on the details of that plan and declared its 
intent to publish a corresponding Federal Register notice.

B. The Statutory Factors

    As demonstrated at 72 FR 58965-67, the market-dominant product 
modern service standards proposed on October 17, 2007, reflect thorough 
consideration of the enumerated factors in subsection 3691(c):
    (1) The actual level of service that Postal Service customers 
receive under any service guidelines previously established by the 
Postal Service or service standards established under this section;
    (2) The degree of customer satisfaction with Postal Service 
performance in the acceptance, processing, and delivery of mail;
    (3) The needs of Postal Service customers, including those with 
physical impairments;
    (4) Mail volume and revenues projected for future years;
    (5) The projected growth in the number of addresses the Postal 
Service will be required to serve in future years;
    (6) The current and projected future cost of serving Postal Service 
customers;
    (7) The effect of changes in technology, demographics, and 
population distribution on the efficient and reliable operation of the 
Postal Service delivery system; and
    (8) The policies of this title and such other factors as the Postal 
Service determines appropriate.
    120 Stat. 3218-19. Although exempt by 39 U.S.C. 410(a) from the 
notice and comment requirements of the Administrative Procedure Act (5 
U.S.C. 553(b) and (c)) regarding proposed rulemaking, the Postal 
Service invited public comments on its proposed regulations. The Postal 
Service carefully reviewed each party's comments in determining whether 
to deviate from its proposed regulations and in establishing service 
standards for the market-dominant products discussed above that were 
not addressed in its October 17, 2007 Federal Register notice. The 
comments reflected many thoughtful observations and some have resulted 
in changes and improvements to the originally proposed regulations, 
which are reflected below.
    In addition to reviewing these comments, the Postal Service also 
re-examined the aforementioned statutory factors, with an emphasis on 
customer satisfaction and customer needs. These factors were 
influential in the Postal Service's determination to adjust some of its 
proposed service standards.

C. Format of Final Regulations

    In its October 17, 2007 Federal Register notice, the Postal Service 
included two sets of tables that were intended to serve as graphic 
representations of the regulations proposed in 39 CFR Parts 121 and 
122. The first set of tables on 72 FR 58950-52 depicted the proposed 
service standard day ranges for each of the following: First-Class 
Mail, Periodicals, Standard Mail and Package Services. The second set 
of tables summarized the corresponding business rules for those 
standards, and the service standards for special services that were 
being proposed. See 72 FR 58953-61.
    As indicated above in section IV, the Postal Service is adopting 
the suggestion that the first set of tables be incorporated into the 
final service standard regulations published in the Code of Federal 
Regulations. Because the second set of tables merely present the 
narrative regulations in a different format, these tables will not be 
included in the regulations. However, as this second set of tables can 
be of value to readers trying to familiarize themselves with the Postal 
Service's inaugural set of market-dominant product service standard 
regulations, revised versions of these tables are incorporated below as 
a summary guide.

D. Guide to Modern Market-Dominant Service Standard Regulations

    The following is a summary of the proposed modern service standard 
day ranges and underlying business rules for market-dominant mail. It 
bears repeating that, where the application of a particular business 
rule for a particular mail product indicates a range of possible 
delivery days, only a single day within that range applies to a 
particular 3-digit ZIP Code origin-destination pair.
1. First-Class Mail
    Domestic First-Class Mail pieces are sealed against inspection and 
typically consist of such matter as bills, statements of account, 
solicitations, personal correspondence and greetings, or other personal 
information that is wholly or partially handwritten or typewritten. The 
modern First-Class Mail service standard day range appears below. 
First-Class Mail service utilizes both air and surface transportation. 
The expected delivery day after the Critical Entry Time for any origin-
destination 3-digit ZIP Code pair depends on mail processing operating 
plans, the distance between origin and destination, and transportation 
times between processing plants.

[[Page 72225]]



                            First-Class Mail
                               End to End
------------------------------------------------------------------------
     Standard (days)                       Business rule
------------------------------------------------------------------------
1........................  Overnight delivery is provided to the entire
                            intra-Sectional Center Facility (SCF) area
                            for mail entered prior to the established
                            and published Critical Entry Time (CET),
                            except for mail between Puerto Rico and the
                            U.S. Virgin Islands and intra-SCF mail
                            originating and destinating in the following
                            3-digit ZIP Code areas in Alaska or
                            designated portions thereof: 995 (5-digit
                            ZIP Codes 99540 through 99591), 996, 997,
                            998 and 999. Other 3-digit ZIP Code areas
                            may be considered for overnight delivery
                            from an origin Processing & Distribution
                            Center/Facility (OP&DC/F) if sufficient
                            customer need exists (destination receives
                            at least 1.5% of the total annual First-
                            Class Mail volume originating from the OPDC/
                            F) and operational and transportation
                            feasibility permit.
2........................  All remaining origin-destination 3-digit ZIP
                            Code pairs that are not overnight and for
                            which the OPDC/F to Area Distribution Center
                            (ADC) surface transportation drive time is
                            within 12 hours, unless the origin and
                            destination are in Alaska, and the mail is
                            entered prior to the established and
                            published CET. All mail between Puerto Rico
                            and the U.S. Virgin Islands that is entered
                            prior to the established and published CET.
                            All Alaska intra-SCF mail that is not
                            overnight and that is entered prior to the
                            established and published CET.
3........................  Mail between all remaining origin-destination
                            3-digit ZIP Code pairs located wholly within
                            the 48 contiguous states that is entered
                            prior to the established and published CET.
                            All mail originating within the 48
                            contiguous states and destinating in the
                            following 3-digit ZIP Code areas: 995
                            (including Anchorage AK); 968 (including
                            Honolulu HI); or 006, 007, or 009 (Puerto
                            Rico) that is entered prior to the
                            established and published CET. All mail
                            originating in 3-digit ZIP Code areas 006,
                            007, or 009 (Puerto Rico) and destinating
                            within the 48 contiguous states that is
                            entered prior to the established and
                            published CET. All mail between Hawaii and
                            Guam that is entered prior to the
                            established and published CET. All remaining
                            intra-Alaska mail that is entered prior to
                            the established and published CET.
4........................  All mail originating within the 48 contiguous
                            states, entered prior to the established and
                            published CET, and destinating in (a) that
                            portion of the state of Alaska not in the
                            995 3-digit ZIP Code area; or (b) that
                            portion of the state of Hawaii not in the
                            968 3-digit ZIP Code area; or (c) the U.S.
                            Virgin Islands. All mail originating in the
                            states of Alaska or Hawaii, or in the
                            territory of the U.S. Virgin Islands,
                            entered prior to the established and
                            published CET and destinating within the 48
                            contiguous states. All mail, entered prior
                            to the established and published CET, that
                            both originates and destinates outside of
                            the 48 contiguous states, where the origin
                            and destination are in different states or
                            territories, excluding mail to or from Guam,
                            or between Puerto Rico and the U.S. Virgin
                            Islands.
5........................  All mail entered prior to the established and
                            published CET that originates in Guam and
                            destinates outside of Guam, other than in
                            Hawaii; or that destinates in Guam and
                            originates outside of Guam, other than in
                            Hawaii.
------------------------------------------------------------------------

    An estimated 99.7 percent of First-Class Mail pieces will have a 
service standard in the 1- to 3-day range, and 0.3 percent will have a 
4- to 5-day service standard.
2. Periodicals
    This domestic mail typically consists of qualified newspapers, 
magazines, and other similar publications. The modern Periodicals 
service standard day range appears below. Periodicals Mail utilizes 
surface transportation. The expected delivery day after the Critical 
Entry Time for any origin-destination 3-digit ZIP Code pair depends on 
the level of destination entry, mail processing operating plans, 
distance between origin and destination, and transportation times 
between processing plants.

                               Periodicals
                               End to End
------------------------------------------------------------------------
     Standard (days)                       Business rule
------------------------------------------------------------------------
1........................  SCF turnaround mail only where the origin PDC/
                            F and SCF are the same building and the mail
                            is entered prior to the established and
                            published Critical Entry Time (CET), except
                            for mail between Puerto Rico and the U.S.
                            Virgin Islands, and mail originating or
                            destinating in the following 3-digit ZIP
                            Code areas in Alaska or designated portions
                            thereof: 995 (5-digit ZIP Codes 99540
                            through 99591), 996, 997, 998 and 999.
2-4......................  All 3-digit ZIP Code origin-destination pairs
                            where Periodicals are entered prior to the
                            established and published CET and merged
                            with First-Class Mail for surface
                            transportation (as defined by the
                            Periodicals Origin Split and First-Class
                            Mail mixed ADC/Automated Area Distribution
                            Center (AADC) DMM label list (L201)) will
                            take on the First-Class Mail service
                            standard plus one day (2 to 4 days, based on
                            First Class Mail standard plus 1 day). All
                            mail between Puerto Rico and the U.S. Virgin
                            Islands that is entered prior to the
                            established and published CET (3 days). All
                            mail between Hawaii and Guam that is entered
                            prior to the established and published CET
                            (4 days). All remaining intra-Alaska mail
                            that is entered prior to the established and
                            published CET (2 to 4 days).
5-9......................  All remaining 3-digit ZIP Code origin-
                            destination pairs within the 48 contiguous
                            states where Periodicals are entered prior
                            to the established and published CET: 4 to 5
                            days, plus the number of days required for
                            surface transportation (1 to 4 days).
8-20.....................   All remaining 3-digit ZIP Code origin-
                            destination pairs outside the 48 contiguous
                            states where Periodicals are is entered
                            prior to the established and published CET:
                            4 to 5 days, plus the number of days
                            required for intermodal (surface, boat, air-
                            taxi) transportation (4 to 15 days).
------------------------------------------------------------------------
                            Destination Entry
------------------------------------------------------------------------
1........................  All mail that receives a Destination Delivery
                            Unit (DDU) entry discount and is dropped at
                            the appropriate DDU. All mail that receives
                            a Destination Sectional Center Facility
                            (DSCF) entry discount and is dropped at the
                            appropriate DSCF prior to the established
                            and published CET, except for mail dropped
                            at the San Juan SCF and destined for the
                            U.S. Virgin Islands, and mail destined for
                            the following 3-digit ZIP Codes areas in
                            Alaska or designated portions thereof: 995
                            (5-digit ZIP Codes 99540 through 99591),
                            996, 997, 998 and 999.

[[Page 72226]]

 
2........................  All mail that receives a Destination Area
                            Distribution Center (DADC) entry discount
                            and is dropped at the appropriate DADC
                            (except for mail destined to Alaska ZIP Code
                            997) where the DADC and the DSCF are not in
                            the same building prior to the established
                            and published CET, unless the ADC is located
                            with the 48 contiguous states and the
                            destination is not. All mail that receives a
                            destination entry discount and is dropped at
                            the San Juan SCF/ADC and destined for the
                            U.S. Virgin Islands. All Alaska intra-SCF
                            mail in the following 3-digit ZIP Codes
                            areas in Alaska or portions thereof: 995 (5-
                            digit ZIP Codes 99540-99591), 996, 997, 998
                            and 999.
3........................  All remaining DADC entered mail destined for
                            Alaska 997.
1-2......................  All mail that receives a Destination Bulk
                            Mail Center (DBMC) containerized rate and is
                            dropped at the appropriate DBMC within the
                            48 contiguous states prior to the
                            established dock CET will receive the
                            appropriate ADC service standard with the
                            exception of mail destined for Alaska,
                            Hawaii, Guam, Puerto Rico, or the U.S.
                            Virgin Islands. The standard depends on
                            whether the ADC and SCF are in the same
                            building.
7........................  All mail that receives a DADC entry discount
                            and is dropped at the appropriate DADC
                            located within the 48 contiguous states
                            prior to the established and published CET,
                            but destinates in Alaska or Guam.
5-8......................  All mail that receives a DBMC containerized
                            rate and is dropped at the appropriate DBMC
                            within the 48 contiguous states prior to the
                            established dock CET, but destinates in
                            Alaska, Hawaii, Guam, Puerto Rico, or the
                            U.S. Virgin Islands. The standard depends on
                            the number of days required for
                            transportation outside of the 48 contiguous
                            states and whether the ADC and SCF are the
                            same building.
------------------------------------------------------------------------

    An estimated 92.3 percent of Periodicals will have a service 
standard in the 1-to 4-day range; 7.4 percent will have a service 
standard in the 5-to 9-day range; and 0.4 percent will have a service 
standard greater than 9 days.
3. Standard Mail
    Any mailable matter weighing less than 16 ounces may be mailed 
domestically as Standard Mail (except matter that is required to be 
mailed as First-Class Mail or copies of a publication that is required 
to be entered as Periodicals Mail). The modern Standard Mail service 
standard day range appears below. Standard Mail service utilizes 
surface transportation. The expected delivery day after the Critical 
Entry Time for any origin-destination 3-digit ZIP Code pair depends on 
the level of destination entry, mail processing operating plans, 
distance between origin and destination, transportation times between 
processing plants, and consideration of the deferrable nature of the 
product. The proposed business rules incorporate determinations 
defining specifically where in the mail flow Standard Mail may be 
deferred for up to one day. For origin-entry mail, this occurs at the 
Postal Service mail processing facility designated as the origin 
consolidation site; for destination-entry mail, this occurs at the 
destination delivery unit.

                              Standard Mail
                               End to End
------------------------------------------------------------------------
     Standard (days)                       Business rule
------------------------------------------------------------------------
3........................  All SCF turnaround mail where the OPDC/F and
                            SCF are the same building, and the mail is
                            entered prior to the established and
                            published Critical Entry Time (CET), except
                            for mail between Puerto Rico and the U.S.
                            Virgin Islands.
4........................  All remaining 3-digit ZIP Code origin-
                            destination pairs that are ADC-turnaround,
                            where the OPDC/F and the ADC are the same
                            building, and the mail is entered prior to
                            the established and published CET, unless
                            the ADC is in the 48 contiguous states and
                            the destination is not. All mail between
                            Puerto Rico and the U.S. Virgin Islands that
                            is entered prior to the established and
                            published CET.
5........................  All remaining 3-digit ZIP Code origin-
                            destination pairs that are part of the intra-
                            Bulk Mail Center (BMC) area, and the mail is
                            entered prior to the established and
                            published CET, and the mail originates and
                            destinates within the 48 contiguous states.
                            All mail between Guam and Hawaii that is
                            entered prior to the established and
                            published CET. All remaining intra-Alaska
                            mail (with the exception of bypass mail)
                            that is entered prior to the established and
                            published CET.
6-10.....................  All mail entered prior to the established and
                            published CET for remaining 3-digit ZIP Code
                            origin-destination pairs: 6 days plus the
                            number of days required for surface
                            transportation (up to 4 days) within the 48
                            contiguous states.
9-22.....................  All remaining mail entered prior to the
                            established and published CET: 5 to 6 days,
                            plus the number of days required for
                            intermodal (surface, boat, air-taxi)
                            transportation outside the 48 contiguous
                            states (4 to 16 days).
------------------------------------------------------------------------
                            Destination Entry
------------------------------------------------------------------------
2........................  All mail that receives a DDU entry discount
                            and is dropped at the appropriate DDU prior
                            to the established and published Critical
                            Entry Time (CET).
3........................  All mail that receives a DSCF entry discount
                            and is dropped at the appropriate DSCF prior
                            to the established and published CET, except
                            for mail dropped at the San Juan SCF and
                            destined for the U.S. Virgin Islands.
4........................  All mail that receives a DSCF entry discount
                            and is dropped at the San Juan SCF prior to
                            the established and published CET and
                            destined for the U.S. Virgin Islands.
5........................  All mail that receives a DBMC entry discount
                            and is dropped at the appropriate DBMC prior
                            to the established and published CET, and
                            originates and destinates within the 48
                            contiguous states.
9-10.....................  All mail that receives a Bulk Mail Center
                            (BMC) entry discount and is dropped at the
                            appropriate BMC located within the 48
                            contiguous states prior to the established
                            and published CET, but destinates in Alaska,
                            Hawaii, Guam, Puerto Rico or the U.S. Virgin
                            Islands. Depends on the number of days
                            required for transportation outside of the
                            48 contiguous states.
------------------------------------------------------------------------


[[Page 72227]]

    An estimated 80.8 percent of Standard Mail pieces will have a 
service standard in the 2-to 5-day range, 19.0 percent will have a 
service standard in the 6-to 10-day range, and 0.2 percent will have a 
service standard greater than 10 days.
4. Package Services
    Any domestic mailable matter may be entered as Package Services 
mail, except for matter required to be entered as First-Class Mail, 
Periodicals, or Standard Mail, as specified by the Postal Service. The 
modern Package Services (Single-Piece Parcel Post, Media Mail, Bound 
Printed Matter and Library Mail) service standard day range appears 
below. Package Services Mail utilizes surface transportation. The 
expected delivery day after the Critical Entry Time for any origin-
destination 3-digit ZIP Code pair depends on the level of destination 
entry, mail processing operating plans, Bulk Mail Center/Auxiliary 
Service Facility (BMC/ASF) processing relationships, distance between 
origin and destination, and inter-BMC/ASF transportation times.

                            Package Servoces
                               End to End
------------------------------------------------------------------------
     Standard (days)                       Business rule
------------------------------------------------------------------------
2........................  All SCF turnaround mail where the OPDC/F and
                            SCF are the same building, and the mail is
                            entered prior to the established and
                            published Critical Entry Time (CET), except
                            for mail between Puerto Rico and the U.S.
                            Virgin Islands.
3........................  All remaining 3-digit origin-destination ZIP
                            Code pairs that are part of the intra-BMC
                            area and the destination is not serviced by
                            an ASF, and the mail is entered prior to the
                            established and published CET, and
                            originates and destinates within the 48
                            contiguous states. All mail between Puerto
                            Rico and the U.S. Virgin Islands that is
                            entered prior to the established and
                            published CET.
4........................  All remaining 3-digit origin-destination ZIP
                            Code pairs that are part of the intra-BMC
                            area and the destination is serviced by an
                            ASF, and the mail is entered prior to the
                            established and published CET and originates
                            and destinates within the 48 contiguous
                            states. All remaining intra-Alaska mail that
                            is entered prior to the established and
                            published CET. All mail between Hawaii and
                            Guam that is entered prior to the
                            established and published CET.
5-8......................  All remaining 3-digit origin-destination ZIP
                            Code pairs where the mail is entered prior
                            to the established and published CET will
                            require 4 days plus the number of days
                            required for surface transportation (1 to 4
                            days) within the 48 contiguous states. An
                            additional day is required if the
                            destination is serviced by an ASF.
7-20.....................  All remaining 3-digit origin-destination ZIP
                            Code pairs and the mail is entered prior to
                            the established and published CET: 3 or 4
                            days plus the number of days required for
                            intermodal (surface, boat, air-taxi)
                            transportation outside the 48 contiguous
                            states (4 to 16 days).
------------------------------------------------------------------------
                            Destination Entry
------------------------------------------------------------------------
1........................  All mail that receives a DDU entry discount
                            and is dropped at the appropriate DDU prior
                            to the established and published CET.
2........................  All mail that receives a DSCF entry discount
                            and is dropped at the appropriate DSCF prior
                            to the established and published CET, except
                            for mail dropped at the San Juan SCF and
                            destined for the U.S. Virgin Islands.
3........................  All mail that receives a DBMC entry discount
                            and is dropped at the appropriate DBMC or
                            Destination Auxiliary Service Facility prior
                            to the established and published CET, and
                            that originates and destinates in the
                            contiguous 48 states. All mail that receives
                            a DSCF entry discount and is dropped at the
                            San Juan SCF and destined for the U.S.
                            Virgin Islands.
7-8......................  All mail that receives a DBMC entry discount
                            and is dropped at the appropriate DBMC
                            located within the 48 contiguous states
                            prior to the established and published CET,
                            but destinates in Alaska, Hawaii, Guam,
                            Puerto Rico, or the U.S. Virgin Islands.
------------------------------------------------------------------------

    An estimated 72.8 percent of Package Services mail will have a 
service standard in the 1-to 4-day range, 26.9 percent will have a 
service standard in the 5-to 8-day range, and 0.3 percent will have a 
service standard greater than 8 days.
5. Special Services
    The table below summarizes the modern service standards established 
for market-dominant special services.

----------------------------------------------------------------------------------------------------------------
                      Special services                                         Service standard
----------------------------------------------------------------------------------------------------------------
Delivery Confirmation \TM\..................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail.
Signature Confirmation \TM\.................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail.
Certified Mail \TM\.........................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail.
Electronic Return Receipt...................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail.
Registered Mail.............................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail and inbound
                                                               international mail.
Collect on Delivery.........................................  Availability of delivery information within 24
                                                               hours of scan for domestic mail.
CONFIRM[reg]................................................  Availability of information within 24 hours of
                                                               scan for domestic mail.
Address Correction (electronic).............................  Availability of address change data within 24
                                                               hours of scan for domestic mail.
Insurance...................................................  Resolution within 30 calendar days of submission
                                                               of claim on domestic mail.
Money Order Inquiry Service.................................  Response within 15 business days of submission of
                                                               completed inquiry form for domestic money order.
Address List Services.......................................  Availability of information within 15 business
                                                               days of request (except between November 16 and
                                                               January 1).
----------------------------------------------------------------------------------------------------------------


[[Page 72228]]

E. Final Postal Service Market Dominant Product Service Standard 
Regulations

List of Subjects in 39 CFR Parts 121 and 122

    Mail, Postal service.

0
For the reasons stated in the preamble, the Postal Service amends 39 
CFR Chapter I, Subchapter C, as follows:
0
1. The heading of subchapter C is revised to read as follows:

Subchapter C--General Information on Postal Products

0
2. Parts 121 and 122 are added are added to read as follows:

PART 121--SERVICE STANDARDS FOR MARKET-DOMINANT MAIL PRODUCTS

Sec.
121.1 First-class mail.
121.2 Periodicals.
121.3 Standard mail.
121.4 Package services.

Appendix A to Part 121--Service Standard Day Range Tables

    Authority: 39 U.S.C., 101, 401, 403, 404, 1001, 3691.


Sec.  121.1  First-class mail.

    (a) For all intra-Sectional Center Facility (SCF) domestic First-
Class Mail[reg] pieces properly accepted before the day-zero Critical 
Entry Time at origin, the service standard is 1-day (overnight), except 
for mail between the territories of Puerto Rico and the U.S. Virgin 
Islands, and intra-SCF mail originating and destinating in the 
following 3-digit ZIP Code \TM\ areas in the state of Alaska or 
designated portions thereof: 995 (5-digit ZIP Code areas 99540 through 
99591) 996, 997, 998, and 999. First-Class Mail pieces addressed to a 
destination 3-digit ZIP Code area outside of an origin intra-SCF 
service area may be considered for overnight delivery from that origin 
SCF, if that mail is accepted before the day-zero Critical Entry Time 
at origin, if sufficient customer need exists [the destination SCF 
receives at least 1.5 percent of the total annual First-Class Mail 
volume originating from the origin Processing & Distribution Center/
Facility (OPDC/F)], and if operational and transportation feasibility 
permit.
    (b) A 2-day service standard is established for all domestic First-
Class Mail pieces properly accepted before the day-zero Critical Entry 
Time at origin if a 1-day service standard is not required, and if the 
origin PDC/F to Area Distribution Center surface transportation drive 
time is 12 hours or less, unless the origin and destination are within 
the state of Alaska; or if the origin and delivery address are 
separately in the territories of Puerto Rico and the U.S. Virgin 
Islands; or if the mail is intra-SCF and originating from or 
destinating to one of the following 3-digit ZIP Code areas in Alaska or 
designated portions thereof: 995 (5-digit ZIP Code areas 99540 through 
99591), 996, 997, 998, and 999.
    (c) A 3-day service standard is established for all remaining 
domestic First-Class Mail pieces properly accepted before the day-zero 
Critical Entry Time at origin, if neither a 1-day nor a 2-day service 
standard is required and
    (1) Both the origin SCF and the delivery address are within the 
contiguous 48 states;
    (2) The origin SCF is in the contiguous 48 states, and the delivery 
address is in either of the following: the 995 3-digit ZIP Code area in 
the state of Alaska, or the 968 3-digit ZIP Code area in the state of 
Hawaii, or in the 006, 007, or 009 3-digit ZIP Code areas of the 
territory of Puerto Rico;
    (3) The origin is in the 006, 007 or 009 3-digit ZIP Code areas of 
the territory of Puerto Rico and the delivery address is in the 
contiguous 48 states;
    (4) The origin SCF is in the state of Hawaii and the delivery 
address is in the territory of Guam; the origin is in the territory of 
Guam and the delivery address is in the state of Hawaii; or
    (5) Both the origin SCF and the delivery address are within the 
state of Alaska.
    (d) A 4-day service standard is established for all remaining 
First-Class Mail pieces properly accepted before the day-zero Critical 
Entry Time at origin, if either a 1-day, 2-day, or 3-day service 
standard is not required, and if:
    (1) The origin SCF is in the contiguous 48 states and the delivery 
address is in either of the following: any portion of the state of 
Alaska not in the 995 3-digit ZIP Code area; or any portion of the 
state of Hawaii not in the 968 3-digit ZIP Code area; or the territory 
of the U.S. Virgin Islands.
    (2) The delivery address is in the contiguous 48 states and the 
origin is in either of the following: the state of Alaska, the state of 
Hawaii, or the territory of the U.S. Virgin Islands;
    (3) The origin and delivery address are in different states or 
territories, excluding mail to and from the territory of Guam and mail 
between the territories of Puerto Rico and the U.S. Virgin Islands.
    (e) A 5-day service standard is established for all remaining 
domestic First-Class Mail pieces properly accepted before the day-zero 
Critical Entry Time at origin, if those pieces originate in the 
territory of Guam but are not destined for Guam or the state of Hawaii, 
or if those pieces originate other than in Guam or Hawaii and are 
destined for Guam.
    (f) The service standard for Outbound Single-Piece First-Class Mail 
International\TM\ pieces properly accepted before the day-zero Critical 
Entry Time at origin is equivalent to the service standard for domestic 
First-Class Mail from the same origin 3-digit ZIP Code to the 3-digit 
ZIP Code area in which that origin's designated International Service 
Center is located.
    (g) The service standard for Inbound Single-Piece First-Class Mail 
International is equivalent to the service standard for domestic First-
Class Mail pieces from the 3-digit ZIP Code area in which that inbound 
mail's designated International Service Center is located to the 3-
digit ZIP Code of the delivery address.


Sec.  121.2  Periodicals.

    (a) End-to-End. (1) For all SCF turnaround Periodicals properly 
accepted before the established and published day-zero Critical Entry 
Time at origin, where the origin P&DC/F and SCF are in the same 
building, the service standard is 1-day (overnight), except for mail 
between the territories of Puerto Rico and the U.S. Virgin Islands, and 
mail originating or destinating in the following 3-digit ZIP Code areas 
within the state of Alaska or designated portions thereof: 995 (5-digit 
ZIP Code areas 99540 through 99591), 996, 997, 998, and 999.
    (2) The Periodicals service standard is the sum of the applicable 
(1-to-3-day) First-Class Mail service standard plus one day, for each 
3-digit ZIP Code origin-destination pair for which Periodicals are 
accepted before the day zero Critical Entry Time at origin and merged 
with First-Class Mail pieces for surface transportation (as defined by 
the Periodicals Origin Split and First-Class Mail mixed Area 
Distribution Center/Automated Area Distribution Center (ADC/AADC) 
Domestic Mail Manual (incorporated by reference; see Sec.  111.2) label 
list L201).
    (3) The Periodicals service standard for mail between the 
territories of Puerto Rico and the U.S. Virgin Islands is 3 days.
    (4) The Periodicals service standard for mail between the state of 
Hawaii and the territory of Guam is 4 days.
    (5) The Periodicals service standard for intra-Alaska mail that is 
not overnight is 2 to 4 days for the following 3-digit ZIP Code areas 
or designated portions thereof: 995 (5-digit ZIP Code

[[Page 72229]]

areas 99540 through 99591), 996, 997, 998, and 999.
    (6) The Periodicals service standard for each remaining 3-digit ZIP 
Code origin-destination pair within the 48 contiguous states, for which 
Periodicals are accepted before the day zero Critical Entry Time at 
origin, is the sum of 4 or 5 days, plus the number of additional days 
(from 1 to 4) required for surface transportation between each 3-digit 
ZIP Code origin-destination pair.
    (7) The Periodicals service standard for each remaining 3-digit ZIP 
Code origin-destination pair, for which Periodicals are accepted before 
the day zero Critical Entry Time at origin, is the sum of 4 or 5 days, 
plus the number of additional days (from 4 to 15) required for 
intermodal (highway, boat, air-taxi) transportation outside of the 48 
contiguous states for each 3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Periodicals that qualify for a 
Destination Delivery Unit (DDU) or Destination Sectional Center 
Facility (DSCF) rate, and that are accepted before the day-zero 
Critical Entry Time at the proper DDU or DSCF, have a 1-day (overnight) 
service standard, except for mail dropped at the SCF in the territory 
of Puerto Rico and destined for the territory of the U.S. Virgin 
Islands, and intra SCF mail in the following 3-digit ZIP Code areas in 
the state of Alaska or designated portions thereof: 995 (5-digit ZIP 
Code areas 99540 through 99591), 996, 997, 998 and 999.
    (2) Periodicals that qualify for a Destination Area Distribution 
Center (DADC) rate, and that are accepted before the day zero Critical 
Entry Time at the proper DADC, unless the ADC is located with the 48 
contiguous states and the destination is not, and where the DADC and 
DSCF are not the same building, have a 2-day service standard, unless 
the destination is the Alaska 997 3-digit ZIP Code area. Mail that 
qualifies for a Destination Sectional Center Facility (DSCF) rate has a 
2-day service standard, if it is accepted before the day-zero Critical 
Entry Time, and the mail is dropped at the SCF in the territory of 
Puerto Rico and is destined for the territory of the U.S. Virgin 
Islands; or if the mail is intra-SCF in the following 3-digit ZIP Code 
areas of the state of Alaska: 996, 998 and 999. Periodicals that 
qualify for a DADC rate, and that are accepted before the day zero 
Critical Entry Time at the Alaska 997 DADC have a 3-day service 
standard.
    (3) Periodicals that qualify for a Destination Bulk Mail Center 
containerized rate, that are accepted before the day-zero Critical 
Entry Time at the proper destination BMC in the contiguous 48 states, 
and that are addressed for delivery in the contiguous 48 states, have a 
service standard of 1 or 2 days, corresponding to the standard for mail 
qualifying for the destination ADC rate, based on whether the 
destination ADC and SCF are the same building.
    (4) Periodicals that qualify for a Destination Bulk Mail Center 
containerized rate, that are accepted before the day-zero Critical 
Entry Time at the proper destination BMC in the 48 contiguous states, 
and that are addressed for delivery in the states of Alaska or Hawaii, 
or the territories of Guam, Puerto Rico, or the U.S. Virgin Islands, 
have a service standard of 5 to 8 days, corresponding to the standard 
for mail qualifying for the destination ADC rate, which is based on the 
number of days required for transportation outside of the 48 contiguous 
states and whether the destination ADC and SCF are the same building.
    (5) Periodicals that qualify for a Destination Area Distribution 
Center (DADC) rate and that are accepted before the day zero Critical 
Entry Time at the proper DADC in the contiguous 48 states for delivery 
to addresses in the state of Alaska, or the territories of Guam or the 
U.S. Virgin Islands, have a service standard of 7 days.


Sec.  121.3  Standard Mail.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Standard Mail[supreg] pieces accepted at 
origin before the day zero Critical Entry Time is 3 days when the 
origin Processing & Distribution Center/Facility (OPD&C/F) and the SCF 
are the same building, except for mail between the territories of 
Puerto Rico and the U.S. Virgin Islands.
    (2) The service standard for Area Distribution Center (ADC) 
turnaround Standard Mail pieces accepted at origin before the day zero 
Critical Entry Time is 4 days when the OPD&C/F and the ADC are the same 
building, unless the ADC is in the contiguous 48 states and the 
delivery address is not, or when the mail is between the territories of 
Puerto Rico and the U.S. Virgin Islands.
    (3) The service standard for intra-Bulk Mail Center (BMC) Standard 
Mail pieces accepted at origin before the day zero Critical Entry Time 
is 5 days for each remaining 3-digit ZIP Code origin-destination pair 
within the same Bulk Mail Center service area if the origin and 
destination are within the contiguous 48 states; the same standard 
applies to mail that is intra-Alaska, intra-Hawaii, or between the 
state of Hawaii and the territory of Guam.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the 48 contiguous states, the service standard for Standard Mail 
pieces accepted at origin before the day zero Critical Entry Time is 
the sum of 6 days plus the number of additional days (from 1 to 4) 
required for surface transportation between each 3-digit ZIP Code 
origin-destination pair.
    (5) For each remaining 3-digit ZIP Code origin-destination pair, 
the service standard for Standard Mail pieces accepted at origin before 
the day zero Critical Entry Time is the sum of 5 or 6 days plus the 
number of additional days (from 4 to 16) required for intermodal 
(highway, boat, air-taxi) transportation outside of the 48 contiguous 
states for each 3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Standard Mail pieces that qualify for a 
Destination Delivery Unit (DDU) rate and that are accepted before the 
day zero Critical Entry Time at the proper DDU have a 2-day service 
standard.
    (2) Standard Mail pieces that qualify for a Destination Sectional 
Center Facility (DSCF) rate and that are accepted before the day zero 
Critical Entry Time at the proper DSCF have a 3-day service standard, 
except for mail dropped at the SCF in the territory of Puerto Rico and 
destined for the territory of the U.S. Virgin Islands.
    (3) Standard Mail pieces that qualify for a Destination Sectional 
Center Facility (DSCF) rate, and that are accepted before the day zero 
Critical Entry Time at the SCF in the territory of Puerto Rico, have a 
4-day service standard if destined for the territory of the U.S. Virgin 
Islands.
    (4) Standard Mail pieces that qualify for a Destination Bulk Mail 
Center (DBMC) rate, and that are accepted before the day zero Critical 
Entry Time at the proper DBMC have a 5-day service standard, if both 
the origin and the destination are in the 48 contiguous states.
    (5) Standard Mail pieces that qualify for a Destination Bulk Mail 
Center (DBMC) rate, and that are accepted before the day zero Critical 
Entry Time at the proper DBMC in the contiguous 48 states for delivery 
to addresses in the states of Alaska or Hawaii or the territories of 
Guam, Puerto Rico, or the U.S. Virgin Islands, have a service standard 
of either 9 or 10 days, depending on the 3-digit origin-destination ZIP 
Code pair. For each such pair, the applicable day within the range is 
based on the number of days required for transportation outside of the 
48 contiguous states.

[[Page 72230]]

Sec.  121.4  Package Services.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Package Services mail accepted at the origin 
SCF before the day zero Critical Entry Time is 2 days when the origin 
Processing & Distribution Center/Facility and the SCF are the same 
building, except for mail between the territories of Puerto Rico and 
the U.S. Virgin Islands.
    (2) The service standard for intra-Bulk Mail Center (BMC) Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is 3 days, for each remaining (non-intra-SCF) 3-digit ZIP Code 
origin-destination pair within a Bulk Mail Center service area, where 
the origin and destination are within the contiguous 48 states and are 
not served by an Auxiliary Service Facility; and for mail between the 
territories of Puerto Rico and the U.S. Virgin Islands.
    (3) The service standard for intra-Bulk Mail Center (BMC) Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is 4 days for each remaining 3-digit ZIP Code origin-destination 
pair within a Bulk Mail Center service area, where the destination 
delivery address is served by an Auxiliary Service Facility; the same 
standard applies to all remaining intra-Alaska mail and mail between 
the state of Hawaii and the territory of Guam.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the 48 contiguous states, the service standard for Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is between 5 and 8 days. For each such 3-digit ZIP Code origin-
destination pair, this is the sum of 4 days, plus the number of 
additional days (from 1 to 4) required for surface transportation 
between each 3-digit ZIP Code origin-destination pair, plus an 
additional day if the destination delivery address is served by an 
Auxiliary Service Facility.
    (5) For each remaining 3-digit ZIP Code origin-destination pair for 
which either the origin or the destination is outside of the 48 
contiguous states, the service standard for Package Services mail 
accepted at origin before the day zero Critical Entry Time is between 7 
and 20 days. For each such 3-digit ZIP Code origin-destination pair, 
this represents the sum of 3 to 4 days, plus the number of days 
(ranging from 4 to 16) required for intermodal (highway, boat, air-
taxi) transportation between each 3-digit ZIP Code origin-destination 
pair.
    (6) The service standard for Inbound Surface Parcel Post[supreg] 
pieces (subject to Universal Postal Union rates) is the same as the 
service standard for domestic Package Services mail from the 3-digit 
ZIP Code area in which the International Bulk Mail Center is located to 
the 3-digit ZIP Code in which the delivery address is located.
    (b) Destination Entry. (1) Package Services mail that qualifies for 
a Destination Delivery Unit (DDU) rate, and that is accepted before the 
day zero Critical Entry Time at the proper DDU, has a 1-day (overnight) 
service standard.
    (2) Package Services mail that qualifies for a Destination 
Sectional Center Facility (DSCF) rate, and that is accepted before the 
day zero Critical Entry Time at the proper DSCF, has a 2-day service 
standard, except for mail dropped at the SCF in the territory of Puerto 
Rico and destined for the territory of the U.S. Virgin Islands.
    (3) Package Services mail that qualifies for a Destination Bulk 
Mail Center (DBMC) rate, which is accepted before the day zero Critical 
Entry Time at the proper DBMC or Destination Auxiliary Service 
Facility, and that originates and destinates in the contiguous 48 
states, has a 3-day service standard. Mail that qualifies for a 
Destination Sectional Center Facility (DSCF) discount, and that is 
accepted before the day zero Critical Entry Time at the SCF in the 
territory of Puerto Rico, has a 3-day service standard if it is 
destined for the territory of the U.S. Virgin Islands.
    (4) Package Services mail that qualifies for a Destination Bulk 
Mail Center (DBMC) rate, and that is accepted before the day zero 
Critical Entry Time at the proper DBMC in the contiguous 48 states for 
delivery to addresses in the states of Alaska or Hawaii, or the 
territories of Guam, Puerto Rico, or the U.S. Virgin Islands has a 
service standard of either 7 or 8 days, depending on the 3-digit ZIP 
Code origin-destination pair. For each such pair, the applicable day 
within the range is based on the number of days required for 
transportation outside of the 48 contiguous states.

Appendix A To Part 121--Tables Depicting Service Standard Day Ranges

    The following tables reflect the service standard day ranges 
resulting from the application of the business rules applicable to 
the market-dominant mail products referenced in Sec. Sec.  121.1 
through 121.4:
    Table 1. End-to-end service standard day ranges for mail 
originating and destinating within the 48 contiguous states and the 
District of Columbia.

                        Contiguous United States
------------------------------------------------------------------------
                                                              End-to-end
                         Mail class                             range
                                                                (days)
------------------------------------------------------------------------
First-Class Mail...........................................          1-3
Periodicals................................................          1-9
Standard Mail..............................................         3-10
Package Services...........................................          2-8
------------------------------------------------------------------------

    Table 2. End-to-end service standard day ranges for mail 
originating and/or destinating within the states of Alaska and 
Hawaii, and the territories of Guam, Puerto Rico and the U.S. Virgin 
Islands.

                                                        Alaska, Hawaii & Guam, Puerto Rico & USVI
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   End-to-End
                                                      --------------------------------------------------------------------------------------------------
                                                           Intra state / territory       To / From 48 contiguous states   To / from states of Alaska and
                                                      ------------------------------------------------------------------  Hawaii, and the Territories of
                                                                                                                          Guam, Puerto Rico and the U.S.
                      Mail class                                                                                                  Virgin Islands
                                                                   Hawaii &    Puerto               Hawaii &    Puerto  --------------------------------
                                                         Alaska      Guam      Rico &     Alaska      Guam      Rico &                           Puerto
                                                                                USVI                             USVI      Alaska    Hawaii &    Rico &
                                                                                                                                       Guam       USVI
--------------------------------------------------------------------------------------------------------------------------------------------------------
First-Class Mail.....................................        1-3        1-3        1-2        3-4        3-5        3-4        4-5        4-5        4-5
Periodicals..........................................        1-4        1-4        1-3       9-15       9-16       8-12      17-20      17-20      17-20
Standard Mail........................................       3-5*        3-5        3-4      10-16      10-18       9-13      19-21      18-22      18-22
Package Services.....................................        2-4        2-4        2-3       8-14       8-15       7-12      16-20      16-20     16-18
--------------------------------------------------------------------------------------------------------------------------------------------------------
Excluding bypass mail.


[[Page 72231]]

    Table 3. Destination entry service standard day ranges for mail 
to the 48 contiguous states and the District of Columbia.

                                            Contiguous United States
----------------------------------------------------------------------------------------------------------------
                                                                  Destination Entry (at appropriate facility)
                         Mail class                          ---------------------------------------------------
                                                               DDU (days)   SCF (days)   ADC (days)   BMC (days)
----------------------------------------------------------------------------------------------------------------
Periodicals.................................................            1            1          1-2          1-2
Standard Mail...............................................            2            3  ...........            5
Package Services............................................            1            2  ...........            3
----------------------------------------------------------------------------------------------------------------

    Table 4. Destination entry service standard day ranges for mail 
to the states of Alaska and Hawaii, and the territories of Guam, 
Puerto Rico and the U.S. Virgin Islands.

                                                        Alaska, Hawaii & Guam, Puerto Rico & USVI
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Destination entry (at appropriate facility)
                                           -------------------------------------------------------------------------------------------------------------
                                                                  SCF (days)                       ADC (days)                       BMC (days)
                Mail class                            --------------------------------------------------------------------------------------------------
                                               DDU                             Puerto                           Puerto                           Puerto
                                              (days)     Alaska    Hawaii &    Rico &     Alaska    Hawaii &    Rico &     Alaska    Hawaii &    Rico &
                                                                     Guam       USVI                  Guam       USVI                  Guam       USVI
--------------------------------------------------------------------------------------------------------------------------------------------------------
Periodicals...............................          1        1-2          1        1-2   1-3 (AK)     1 (HI)        1-2        6-8        6-7        5-6
                                                                                          7 (JNU)     7 (GU)
                                                                                          7 (KTN)
Standard Mail.............................          2          3          3        3-4  .........  .........  .........         10         10          9
Package Services..........................          1          2          2        2-3  .........  .........  .........          8          8         7
--------------------------------------------------------------------------------------------------------------------------------------------------------
AK = Alaska 3-digit ZIP Codes 995-997; JNU = Juneau AK 3-digit ZIP Code 998; KTN = Ketchikan AK 3-digit
ZIP Code 999; HI = Hawaii 3-digit ZIP Codes 967 and 968; GU = Guam 3-digit ZIP Code 969.

PART 122--SERVICE STANDARDS FOR MARKET-DOMINANT SPECIAL SERVICES 
PRODUCTS

Sec.
122.1 Ancillary special services.
122.2 Stand-alone special services.

    Authority: 39 U.S.C. 101, 401, 403, 404, 1001, 3691.


Sec.  122.1  Ancillary special services.

    (a) For the market-dominant mail products identified above in part 
121, mailers may purchase various ancillary special services products, 
which are designed to provide electronic access to information 
regarding delivery-related events or forwarding addresses for 
individual mailpieces.
    (1) For the following special services, the service standard for 
the electronic provision of delivery-related information is that it be 
made available to the sender no later than 24 hours after the time of 
the recorded delivery-related scan performed by the Postal Service on 
mail for which the following special services have been purchased: 
Domestic Certified MailTM service, domestic Delivery 
ConfirmationTM service, domestic and inbound international 
Registered MailTM service, domestic Collect On Delivery, 
domestic electronic Return Receipt, and domestic Signature 
ConfirmationTM scans.
    (2) For domestic electronic Address Correction Service, the service 
standard for the electronic provision of address change information is 
that it be made available to the sender no later than 24 hours after 
the time of the scan of the mailpiece by the Postal Automated 
Redirection System.
    (b) For the market-dominant mail products identified above in part 
121, mailers may purchase insurance from the Postal 
ServiceTM to provide indemnity against loss or damage to the 
contents of a mailpiece. The service standard for the administrative 
resolution of domestic insurance claims is that a final agency decision 
must be transmitted to the claimant no later than 30 calendar days 
after the date on which the Postal Service has received all information 
from the claimant necessary for analysis of the claim.


Sec.  122.2  Stand-alone special services.

    (a) The service standard for P. O. BoxTM service is that 
mail be available for pickup at the box each delivery day no later than 
the daily ``up-time'' publicly posted at the Post OfficeTM 
location that includes the box section.
    (b) The service standard for completion of Address List Services 
(change-of-address information for election boards and registration 
commissions, correction and ZIP Code placement of mailing lists, and 
address sequencing) is transmission of the corrected addresses within 
15 business days of receipt to the requester, except for the period 
from November 16 through January 1.
    (c) For the domestic market-dominant mail products identified above 
in part 121, CONFIRM[supreg] service allows subscribing customers to 
obtain electronic information regarding when and where mailpieces 
undergo barcode scans in mail processing operations. The service 
standard for the electronic provision of CONFIRM service scan 
information is that it be made available to the sender no later than 24 
hours after the recorded time of the CONFIRM scan performed by the 
Postal Service.
    (d) The service standard for Postal Money Order Inquiry service is 
transmission of a response to the customer's completed inquiry within 
15 business days of receipt of the inquiry by the Postal Service, 
excluding designated postal holidays.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. E7-24365 Filed 12-18-07; 8:45 am]
BILLING CODE 7710-12-P