[Federal Register Volume 75, Number 52 (Thursday, March 18, 2010)]
[Rules and Regulations]
[Pages 12981-12988]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5738]


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POSTAL SERVICE

39 CFR Part 111


Eligibility for Commercial Flats Failing Deflection

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service published a proposed rule regarding 
eligibility for commercial flats failing deflection in the Federal 
Register on December 14, 2009. This final rule provides revised mailing 
standards and price eligibility for commercial flats of all classes 
that fail to meet the deflection standard.

DATES: Basic standards effective June 7, 2010, with price consequences 
effective October 3, 2010.

FOR FURTHER INFORMATION CONTACT: Bill Chatfield, 202-268-7278.

SUPPLEMENTARY INFORMATION: This final rule contains modifications to 
the original proposal, in response to customer comments. The final rule 
does not include changes to the deflection standards, but to the 
pricing eligibility. In response to the original deflection proposal 
and scheduled implementation in May 2009, customers expressed concerns 
about the potential additional postage due for pieces failing the 
deflection standards. Based on these concerns and to align with other 
quality efforts, in December 2009 the Postal Service proposed to change 
the price eligibilities applicable for pieces that fail the deflection 
standards.
    In this final rule notice we provide background, summary of the 
comments received, our response to the comments, a summary of the 
changes and revisions to the applicable prices for pieces that do not 
meet the deflection standards, followed by changes to the mailing 
standards in Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM[supreg]).

Background

    The Postal Service's final rule for new mailing standards to be 
effective in May 2009 was published in the Federal Register (74 FR 
15380-15384) on April 6, 2009. The final rule included new deflection 
standards, previously applicable only to automation flats, for all 
commercial flat-size mail except saturation and high-density 
Periodicals and Standard Mail[supreg] flats, as a basic

[[Page 12982]]

eligibility standard for categorization as a flat. The implementation 
of the new deflection standards was postponed from the May 2009 date 
and was subsequently deferred further to June 2010.
    As a reminder, the USPS[supreg] relaxed the deflection standards in 
2007 by increasing the permitted deflection to up to 4 for 
flat-size pieces at least 10 long. Our difficulties in 
processing flats that came close to that new maximum deflection, and in 
processing oblong-shaped flats, made it clear that the change did not 
allow consistent, successful processing and handling of flats with the 
new maximum deflection. Our delayed implementation of June 7, 2010 
offered mailers the opportunity to make changes to slightly stiffen or 
redesign their ``droopy'' flats to meet the new standards. The new 
deflection standards allow 1 inch less of vertical deflection (droop) 
than is currently allowed; as an example, 3 inches of deflection will 
be allowed for flats 10 inches or longer.

Comments

    We received 35 comments from customers, including publishers, 
mailer associations, and consumers. Some of the commenters agreed with 
the general intent of the pricing eligibility, to encourage production 
of flats that we are reliably able to process efficiently; however even 
these commenters stated that the proposed increase was too high to be 
readily absorbed by mailers. Commenters provided various calculations--
stating the increase for In-County carrier route newspapers as 78 
percent, the range of increase across affected pieces as being from 8 
percent to 78 percent, and the increase for Bound Printed Matter pieces 
from flats to parcel prices as ``excessive.'' Many commenters advocated 
exempting basic carrier-route flats from the standard altogether, or at 
least exempting carrier-route flats which also are dropshipped to 
destination delivery units (DDUs).
    Many of the commenters focused their comments on the likely 
negative effect on newspapers, which were generally categorized by the 
commenters as inherently unable to meet the new deflection standards. 
Several commenters noted that the increase for the most part was 
proportional to the sort level, the anomaly being the higher percentage 
increase for basic carrier route flats from carrier route to 5-digit 
prices. Additional customer comments and suggestions received:
     Many commenters were concerned about inconsistent testing 
at acceptance; some of those commenters suggested the need for a more 
objective verification process or tool.
     A few commenters asked for an error tolerance for flats in 
copalletized or comailed mailings.
     Several commenters requested sampling procedures for 
mailings of nonidentical pieces, perhaps similar to current manifest 
mailing sampling.
     The resultant increase in postage costs was characterized 
as discriminatory to newspapers.
     The resultant increase in postage would be too cost 
prohibitive to continue to mail and mailers may revert to electronic, 
hand, or other private delivery methods.
     The 5-digit price for carrier route pieces failing 
deflection negates the value of the sortation.
     The 5-digit price also negates the DDU discount for 
carrier route flats failing deflection (an apparent consequence since 
there are no DDU discount prices related to 5-digit sortation).
     Some commenters asked for pricing consequences similar to 
those for pieces that fail Move Update tests.
     Several commenters suggested that pieces receiving scans 
should be eligible for full-service IMb[supreg] pricing. If automation 
prices are denied, pieces that are prepared to be part of full-service 
IMb mailings would be ineligible for full-service IMb.
     Quarter-folding newspapers may bring flats into 
compliance, but at additional cost; and quarter-folding would not work 
well with any inserts. Also, there was concern that quarter-folded 
papers might not process well and may not provide a long-term solution.
     Several commenters advocated a prequalification process 
whereby sample pieces would be submitted and prequalified to pass 
deflection, to limit mailers' risk in producing pieces which may be 
found to fail deflection at acceptance. Linked with this suggestion was 
a request for a tolerance of up to \1/2\ inch from the standards.
     Some commenters were concerned about their publications 
being drawn into the Flats Sequencing Sortation (FSS) workflow and 
possible negative effects on service.
    There were a few general comments suggesting that the USPS should:
     Find the ability to accept pieces with a wider array of 
designs rather than limiting the designs of pieces that can be accepted 
as ``machinable'' flats.
     Develop better advance communication methods and implement 
more thorough communication to a wider spectrum of mailers.
     Provide intensive feedback about failed pieces to mailers 
between now and June 2010.
     Retain current deflection standards for six more months 
and enlist the assistance of a Lean Six-Sigma group.

Response to Comments

    The prices proposed in our December 2009 proposal were developed in 
response to concerns about the previously proposed parcel price 
consequences. If we had not proposed these prices, most of the prices 
for commercial flats failing deflection would have been much higher 
than those proposed in the December 2009 proposal. Because of the 
postponement of price increases (for the affected classes of mail) from 
May 2010 until 2011, we were limited to existing prices in our 
establishment of prices for flimsy or droopy flat-size pieces. For most 
mailers, these prices can be avoided by changing the design or 
production of their mailpieces.
    Flat-size pieces that do not meet deflection standards are not 
currently eligible for any automation flats prices, including full-
service Intelligent Mail prices. Changes in mailing standards for flats 
over the last few years have brought the characteristics of mailpieces 
mailed at nonautomation flats prices more in line with automation flats 
characteristics, to better enable us to handle flats with or without a 
barcode. There is ample evidence that flimsy flat-size pieces that fail 
to meet deflection standards cannot be processed without incurring many 
feeding and jamming problems. Therefore, we cannot continue to accept 
those pieces at prices that are based on our ability to process such 
pieces via automated processing.
    Based on comments received, we are making modifications to improve 
the objectivity of the testing process. Also, we are developing a 
random sampling procedure to test mailings of nonidentical pieces, 
including comailed and copalletized mailings.
    Some commenters requested a prequalification process to ensure that 
tested mailpiece designs would qualify for automation or other specific 
prices regardless of whether they actually passed the deflection test 
at the time of acceptance. We will not be implementing a 
prequalification process. Flats as they are produced and presented for 
live mailing need to meet all the standards for the applicable prices. 
Just as we do today for a variety of other standards, we have 
procedures in place that encourage mailers to work closely with local 
postal employees to improve the quality of their mailpieces, thereby 
reducing the possibility of

[[Page 12983]]

incurring additional postage costs. We will be expanding that 
evaluation process to provide guidance as to whether a sample mailpiece 
is likely to meet the deflection standards. This evaluation will allow 
mailers the opportunity to adjust the mailpiece as necessary to be 
eligible for machinable or automation prices.
    To additionally assist the mailing community with feedback on their 
flat-size pieces, the USPS will continue to use our electronic mail 
improvement reporting (eMIR) system between now and implementation to 
alert mailers with problematic flats so that they may adjust their 
mailpiece design and avoid paying additional postage.
    We strongly encourage mailers who are considering quarter-folding 
their flats to work with their local Mailpiece Design Analyst to 
discuss all options.
    We understand mailers' concerns about DDU entry, but this notice 
will not address service implications related to DDU entry or to FSS 
processing.
    After consideration of the comments, in recognition of the 
continued allowance of flats entry to DDUs for basic carrier route 
flats (Periodicals, Standard Mail, and Bound Printed Matter flats), we 
are exempting all basic carrier route flats dropshipped to DDUs from 
the deflection standards. This exemption includes Periodicals 
publications that are entered directly at delivery units via 
specifically-authorized exceptional dispatch procedures. We may re-
evaluate this decision in the future and strongly encourage customers 
with this type of mail to work toward meeting the deflection standards.
    We will not be exempting basic carrier route flats that are not 
entered at DDUs.

Recap of Pricing Eligibility

    Effective October 3, 2010, for commercial flats that fail to meet 
the deflection standards, price eligibility by class of mail is 
described in the tables below. For all classes of mail, if the mailing 
is determined not to meet the deflection standards, the sortation for 
failed pieces may remain as prepared. However, for First-Class Mail 
presorted flats that will pay single-piece prices, the presorted 
marking must be obliterated or corrected via the addition of a 
``single-piece'' marking.

                                           First-Class Mail Automation
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          Eligibility as presented                           Eligibility with  failed deflection
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Automation 5-digit flat....................  Presorted flat.
Automation 3-digit.........................  Presorted flat.
Automation ADC.............................  Presorted flat.
Automation MADC............................  Presorted flat.
----------------------------------------------------------------------------------------------------------------


                                   First-Class Mail Presorted (Nonautomation)
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          Eligibility as presented                           Eligibility with  failed deflection
----------------------------------------------------------------------------------------------------------------
Presorted flat.............................  Single-piece flat or presorted parcel.
----------------------------------------------------------------------------------------------------------------


                                           Periodicals Outside County
----------------------------------------------------------------------------------------------------------------
    Piece price eligibility as presented                Piece price eligibility with failed deflection
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Basic Carrier Route flat, if not entered at  Machinable 5-digit flat.
 a DDU.
Machinable barcoded 5-digit flat...........  Nonmachinable barcoded 5-digit flat.
Machinable barcoded 3-digit flat...........  Nonmachinable barcoded 3-digit flat.
Machinable barcoded ADC flat...............  Nonmachinable barcoded ADC flat.
Machinable barcoded MADC flat..............  Nonmachinable barcoded MADC flat.
Machinable nonbarcoded 5-digit flat........  Nonmachinable nonbarcoded 5-digit flat.
Machinable nonbarcoded 3-digit flat........  Nonmachinable nonbarcoded 3-digit flat.
Machinable nonbarcoded ADC flat............  Nonmachinable nonbarcoded ADC flat.
Machinable nonbarcoded MADC flat...........  Nonmachinable nonbarcoded MADC flat.
Nonmachinable barcoded or nonbarcoded flat.  Price claimed, if otherwise eligible.
----------------------------------------------------------------------------------------------------------------


                                              Periodicals In-County
----------------------------------------------------------------------------------------------------------------
    Piece price eligibility as presented               Piece price eligibility with failed  deflection
----------------------------------------------------------------------------------------------------------------
Basic Carrier Route flat, if not entered at  Nonautomation (or automation, if barcoded) 5-digit flat.
 a DDU.
Automation 5-digit flat....................  Nonautomation 5-digit flat.
Automation 3-digit flat....................  Nonautomation 3-digit flat.
Automation basic flat......................  Nonautomation basic flat.
----------------------------------------------------------------------------------------------------------------


                                                  Standard Mail
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                           Eligibility with  failed deflection
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Basic Carrier Route flat, if not entered at  Nonautomation 5-digit flat.
 a DDU.

[[Page 12984]]

 
Automation 5-digit flat....................  Nonautomation 5-digit flat.
Automation 3-digit flat....................  Nonautomation 3-digit flat.
Automation ADC flat........................  Nonautomation ADC flat.
Automation MADC flat.......................  Nonautomation MADC flat.
Nonautomation flat (all sort levels).......  Nonautomation MADC flat.
----------------------------------------------------------------------------------------------------------------


                                              Bound Printed Matter
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                           Eligibility with  failed deflection
----------------------------------------------------------------------------------------------------------------
Carrier Route flat, if not entered at a DDU  Carrier Route parcel.
Barcoded presorted flat....................  Presorted parcel.
Nonbarcoded presorted flat.................  Presorted parcel.
Nonbarcoded nonpresorted flat..............  Price as claimed, if otherwise eligible.
----------------------------------------------------------------------------------------------------------------

    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

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

PART 111--[AMENDED]

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

    Authority:  5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633, 
and 5001.

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

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

* * * * *

300 Commercial Mail Flats

* * * * *

301 Physical Standards

1.0 Physical Standards for Flats

* * * * *
    [Renumber current 1.6 and 1.7 as new 1.7 and 1.8.] [Move 301.3.2.3 
in its entirety, renumber as new 1.6, revise heading and text and 
graphics to extend revised maximum deflection standards to all flat-
size mailpieces, and delete item c as follows:]

1.6 Maximum Deflection for Flat-Size Mailpieces

    Flat-size mailpieces must be flexible (see 1.3) and must meet 
maximum deflection standards. Flat-size pieces mailed as high density 
or saturation carrier route pieces, and basic carrier route pieces 
entered by the mailer at destination delivery units (DDUs), are not 
required to meet these deflection standards. Flat-size pieces mailed as 
basic carrier route pieces that are not entered at DDUs are not exempt 
from meeting the standards. Test deflection as follows:
    a. For pieces 10 inches or longer (see Exhibit 1.5a):
    1. Place the piece on a flat, straight-edge surface with the length 
perpendicular to the edge of the surface and extend the piece 5 inches 
off the edge of the surface. Test square-shaped bound flats by placing 
the bound edge parallel to the edge.
    2. Place a flat 12-inch ruler (or other similar flat object 12 
inches or longer) on top of the mailpiece with the length parallel to 
the edge of the surface and as close to the edge as possible so that 
the 5-pound weight (see 1.6a3) does not extend past the edge.
    3. Place a certified 5-pound weight on the center of the ruler to 
hold the piece in place.
    4. Determine the vertical deflection in inches.
    5. Turn the piece around 180 degrees and repeat the process.
    6. The piece is mailable as a flat if it does not droop more than 3 
inches vertically at either end.

[[Page 12985]]

[GRAPHIC] [TIFF OMITTED] TR18MR10.002

    b. For pieces less than 10 inches long (see Exhibit 1.6b):
    1. Place the piece on a flat, straight-edge surface with the length 
perpendicular to the edge of the surface and extend the piece one-half 
of its length off the edge of the surface. Test square-shaped bound 
flats by placing the bound edge parallel to the edge.
    2. Place a flat 12-inch ruler (or other similar flat object 12 
inches or longer) on top of the mailpiece with the length parallel to 
the edge of the surface and as close to the edge as possible so that 
the 5-pound weight (see 1.6b3) does not extend past the edge.
    3. Place a certified 5-pound weight on the center of the ruler to 
hold the piece in place.
    4. Determine the vertical deflection in inches.
    5. Turn the piece around 180 degrees and repeat the process.
    6. The piece is mailable as a flat if it does not droop more than 2 
inches less than the extended length at either end. For example, a 
piece 8 inches long would be extended 4 inches horizontally off a flat 
surface. It must not droop more than 2 inches vertically at either end.

[[Page 12986]]

[GRAPHIC] [TIFF OMITTED] TR18MR10.003

1.7 Flat-Size Pieces Not Eligible for Flat-Size Prices

    [Revise text of 1.7 to read as follows:]
    Effective October 3, 2010, flat-size mailpieces that do not meet 
the standards in 1.3 through 1.5 or the standards in 302.2.0 must pay 
applicable higher prices as noted in either 1.7a or 1.7b below.
    a. Flat-size pieces that do not meet flexibility, uniform 
thickness, or polywrap standards in 1.3 through 1.5 must pay these 
applicable prices:
    1. First-Class Mail--parcel prices.
    2. Periodicals--parcel prices.
    3. Standard Mail--Not Flat-Machinable or parcel prices.
    4. Bound Printed Matter--parcel prices.
    b. Flats that do not meet deflection standards in 1.6 must pay the 
applicable prices as noted in exhibit 1.7b. Under the column heading 
``eligibility as presented,'' flats will be considered to be presented 
as automation flats only if they meet all other eligibility standards 
for automation flats.

Exhibit 1.7b Pricing for Flats Exceeding Maximum Deflection

    The price consequences in this exhibit are effective October 3, 
2010 for pieces failing the deflection standard in 1.6.

                                           First-Class Mail Automation
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                           Eligibility with  failed deflection
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Automation 5-digit flat....................  Presorted flat.
Automation 3-digit.........................  Presorted flat.
Automation ADC.............................  Presorted flat.
Automation MADC............................  Presorted flat.
----------------------------------------------------------------------------------------------------------------


                                   First-Class Mail Presorted (Nonautomation)
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                            Eligibility with failed deflection
----------------------------------------------------------------------------------------------------------------
Presorted flat.............................  Single-piece flat or presorted parcel.
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[[Page 12987]]


                                           Periodicals Outside County
----------------------------------------------------------------------------------------------------------------
    Piece price eligibility as presented               Piece price eligibility with failed deflection.
----------------------------------------------------------------------------------------------------------------
Basic Carrier Route flat, if not entered at  Machinable 5-digit flat.
 a DDU.
Machinable barcoded 5-digit flat...........  Nonmachinable barcoded 5-digit flat.
Machinable barcoded 3-digit flat...........  Nonmachinable barcoded 3-digit flat.
Machinable barcoded ADC flat...............  Nonmachinable barcoded ADC flat.
Machinable barcoded MADC flat..............  Nonmachinable barcoded MADC flat.
Machinable nonbarcoded 5-digit flat........  Nonmachinable nonbarcoded 5-digit flat.
Machinable nonbarcoded 3-digit flat........  Nonmachinable nonbarcoded 3-digit flat.
Machinable nonbarcoded ADC flat............  Nonmachinable nonbarcoded ADC flat.
Machinable nonbarcoded MADC flat...........  Nonmachinable nonbarcoded MADC flat.
Nonmachinable barcoded or nonbarcoded flat.  Price claimed, if otherwise eligible.
----------------------------------------------------------------------------------------------------------------


                                              Periodicals In-County
----------------------------------------------------------------------------------------------------------------
    Piece price eligibility as presented                Piece price eligibility with failed deflection
----------------------------------------------------------------------------------------------------------------
Basic Carrier Route flat, if not entered at  Nonautomation (or automation, if barcoded) 5-digit flat.
 a DDU.
Automation 5-digit flat....................  Nonautomation 5-digit flat.
Automation 3-digit flat....................  Nonautomation 3-digit flat.
Automation basic flat......................  Nonautomation basic flat.
----------------------------------------------------------------------------------------------------------------


                                                  Standard Mail
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                            Eligibility with failed deflection
----------------------------------------------------------------------------------------------------------------
Basic Carrier Route flat, if not entered at  Nonautomation 5-digit flat.
 a DDU.
Automation 5-digit flat....................  Nonautomation 5-digit flat.
Automation 3-digit flat....................  Nonautomation 3-digit flat.
Automation ADC flat........................  Nonautomation ADC flat.
Automation MADC flat.......................  Nonautomation MADC flat.
Nonautomation flat (all sort levels).......  Nonautomation MADC flat.
----------------------------------------------------------------------------------------------------------------


                                              Bound Printed Matter
----------------------------------------------------------------------------------------------------------------
          Eligibility as presented                            Eligibility with failed deflection
----------------------------------------------------------------------------------------------------------------
Carrie Route flat, if not entered at a DDU.  Carrier Route parcel.
Barcoded presorted flat....................  Presorted parcel.
Nonbarcoded presorted flat.................  Presorted parcel.
Nonbarcoded nonpresorted flat..............  Price as claimed, if
                                             otherwise eligible.
----------------------------------------------------------------------------------------------------------------

* * * * *

3.0 Physical Standards for Automation Flats

* * * * *

3.2 Additional Criteria for Automation Flats

    [Current 3.2.3 was previously renumbered as new 1.6.]
* * * * *

707 Periodicals

* * * * *

2.0 Price Application and Computation

2.1 Price Application

* * * * *

2.1.2 Applying Outside-County Piece Prices

    * * * Apply piece prices for Outside-County mail as follows:
* * * * *
    [Revise item c1 to read as follows:]
    c. Nonmachinable flats.
    1. Apply the ``Nonmachinable Flats--Barcoded'' prices to pieces 
that meet all of the alternative standards for flats in 26.0 and 
include a barcode. Exception: Barcoded pieces prepared under 26.0 and 
placed in 5-digit bundles pay the ``Machinable Flats--Barcoded'' 5-
digit price. Effective October 3, 2010, ``nonmachinable'' barcoded 
flats claiming the machinable flats-barcoded 5-digit price must meet 
the deflection standards in 301.1.0.
* * * * *

26.0 Physical Criteria for Nonmachinable Flat-Size Periodicals

* * * * *

26.3 Flexibility and Deflection

    [Revise the text of 26.3 to read as follows:]
    Pieces prepared under 26.0 are not subject to the standards for 
flexibility in 301.1.3 or the standards for deflection in 301.3.2.3, 
except pieces claiming machinable 5-digit prices under 2.1. Effective 
October 3, 2010, nonmachinable flats in 5-digit bundles claiming 5-
digit machinable flats prices must meet the deflection standards in 
301.1.0.
* * * * *

[[Page 12988]]

    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2010-5738 Filed 3-17-10; 8:45 am]
BILLING CODE 7710-12-P