[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Rules and Regulations]
[Pages 14369-14373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06743]
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POSTAL SERVICE
39 CFR Part 111
Green & Secure
AGENCY: Postal Service\TM\.
ACTION: Final rule.
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SUMMARY: The Postal Service is amending Mailing Standards of the United
States Postal Service, Domestic Mail Manual (DMM[supreg]) to add Green
& Secure as an Address Change Service option utilizing existing Change
Service Requested Service Type ID's (STID).
DATES: Effective: April 4, 2018.
FOR FURTHER INFORMATION CONTACT: Heather Dyer at (207) 482-7217 or
Jacqueline Erwin at (202) 268-2158.
SUPPLEMENTARY INFORMATION:
Background
The Postal Service published a notice of proposed rulemaking on
January 9, 2018, (83 FR 995-997) to amend the DMM to add a new
alternative Move Update method, Green & Secure, for mailers who enter
eligible letter- and flat-size pieces of First-Class Mail[supreg] and
USPS Marketing Mail[supreg] (formerly Standard Mail[supreg]) that meet
the requirements for presort, Basic automation, or Full-Service
automation mailings.
The Postal Service received many insightful comments and questions
from the mailing community in response to the proposed rule of January
9, 2018. In response to those comments, the Postal Service incorporates
the following changes into this final rule, and notes that aside from
these changes, Green & Secure has not changed in substance from the
proposed rule of January 9, 2018:
[ssquf] The comments revealed that adding Green & Secure as an
Alternative Move Update method in the DMM caused confusion regarding
whether Green & Secure pieces would have to be updated consistent with
the Move Update standard in DMM 602.5.1. The Postal Service, therefore,
has recast Green & Secure as an option under Address Change Service
using the existing Change Service Requested Service Type IDs (STID) to
clarify that the Move Update standard applies to these mailpieces;
mailers must continue to update their mailing lists using at least one
of the USPS-approved Move Update methods listed in DMM 602.5.2.
Accordingly, this final rule includes changes to DMM 507.4.2.2 instead
of DMM 602.5.2 as had been announced in the proposed rule.
[ssquf] Under the forthcoming Address Quality Census Measurement
and
[[Page 14370]]
Assessment Process (AQCMAP), a mailer's total error percentage is the
ratio of mailpieces with change of address (COA) errors to the mailer's
total Move Update Eligible Piece count in the calendar month. Green &
Secure mailpieces will be automatically excluded from the count of
mailpieces with a COA error (the numerator) but included in the
mailer's total Move Update Eligible Piece count (the denominator).
[ssquf] Implementation of Green & Secure will begin in March 2018.
In addition, assessment under the Address Quality Census Measurement
and Assessment Process has been delayed until April 2018 for March
errors.
In sum, as discussed in further detail herein and in the proposed
rule of January 9, 2018, mailpieces bearing a STID for ACS Change
Service Requested, with or without Secure Destruction, will now fall
under the Green & Secure option. Moreover, the Postal Service clarifies
that mailpieces bearing these STID types must be updated in accordance
with the Move Update standard in DMM 602.5.1, but will not be subject
to assessment under the Move Update Verification, Address Quality
Census Measurement and Assessment Process in DMM 602.5.3.
Summary of Industry Comments and Postal Service Responses
The Postal Service received three sets of comments in response to
the proposed rule of January 9, 2018. The Postal Service appreciates
all of the comments that were provided by the mailing industry. The
proceeding comments and replies can serve as frequently asked questions
(FAQs) to help clarify the Green & Secure Address Change Service
option. The mailers' comments and corresponding Postal Service
responses are outlined as follows:
Mailer Comment: Will mailers that use Green & Secure be exempt from
USPIS audits or assessments?
USPS Response: The Inspection Service will not initiate Move Update
investigations unless non-compliance from a mailer has been
demonstrated to be a routine and repeatable practice despite an
opportunity, through communication from Mail Entry with the mailer, to
correct the practice.
Mailer Comment: We propose deferring the imposition of assessments
90 days from when the Mailer Scorecard changes have been updated by the
USPS.
USPS Response: The Address Quality Census Measurement and
Assessment Process assessments will begin in April 2018 using March
2018 data. In addition, mailpieces utilizing the Green & Secure Address
Change Service option, will be excluded from assessments beginning in
March 2018.
Comments from two responders are as follows:
Mailer Comment: Is the Secure Destruction process ready to support
the increased volume and what additional steps will USPS take to ensure
Secure Destruction will not overwhelm and degrade the quality of this
service?
USPS Response: The Postal Service launched Secure Destruction for
First-Class Mail letters in November 2014. The Green & Secure option
will not change the operational procedures of Secure Destruction; as a
result, the Postal Service does not expect Green & Secure to adversely
impact quality.
Mailer Comment: Why did USPS not use a unique Green & Secure STID?
We are concerned about the ability to measure the effectiveness of this
new method.
USPS Response: The Postal Service evaluated the need for additional
STIDs and found that the ACS Change Service Requested Service Type IDs
can be used to effectively track and measure the pieces. Therefore, new
STIDs are not necessary.
Mailer Comment: Will mailers using the new Green & Secure method
now risk an increased COA error rate and exceed the threshold?
USPS Response: No. Green & Secure volume will be included in the
total Move Update Eligible Pieces metric, which is used in the
denominator of the AQCMAP error percentage calculation, and excluded
from the count of mailpieces with COA errors in the numerator.
Including the volume in the denominator of the calculation will
decrease the mailer's risk of exceeding the error threshold.
Mailer Comment: The Postal Service should clarify whether a mailer
using the Green & Secure method must still comply with the requirements
of ACS.
USPS Response: Mailers using Green & Secure must comply with the
requirements of ACS (i.e., they must use the COA notices received under
ACS to update their addresses) if that is the only USPS-approved Move
Update Method that is used. Mailers may use another USPS-approved Move
Update Method listed in DMM 602.5.2 to update their addresses even if
they receive COA notices under ACS.
Mailer Comment: We believe that there should be no new registration
method required to incorporate Green & Secure and the approval
processes for Green & Secure are unclear.
USPS Response: There are no new registration or approval
requirements to incorporate Green & Secure Address Change Service
option. As is the case today for ACS registration, registration for
Green & Secure will be required only when mailers:
[ssquf] Request Secure Destruction for First-Class Mail (enrollment
required to get Secure Destruction Data via EPF).
[ssquf] Enter mail that is not Full-Service (enrollment required to
get Basic = OneCode ACS data via EPF).
[ssquf] Enter mail that is both Full-Service & Basic, which does
not qualify for No-fee ACS (enrollment required to get ACS data via
EPF. SingleSource ACS fulfillment is available to combine Full-Service
and OneCode ACS).
[ssquf] Request Change Service Requested Option 2 for USPS
Marketing Mail (enrollment required for invoicing the Forwarded Fee).
Mailer Comment: We urge that all publications applicable to Move
Update be updated to reflect this new option to ensure consistency
throughout.
USPS Response: All applicable documentation and publications will
be updated to reflect the new Green & Secure option. The Guide to Move
Update is currently being updated to include the Address Quality Census
Measurement and Assessment Process and the Green & Secure Address
Change Service option, as well as other modifications throughout the
document.
Mailer Comment: The FRN does not clearly explain what Move Update
method to indicate on the mail submission documents.
USPS Response: The Green & Secure option is considered an ACS
method for purposes of indicating a method on the postage statement.
Mailers should select ACS as their Move Update method on the Postage
Statement if this is the method being utilized to meet the Move Update
requirement.
Mailer Comment: Does the Green & Secure process impact future
modifications to the Census Threshold?
USPS Response: The Address Quality Census Measurement and
Assessment Process error threshold of 0.5 percent was set at an
achievable level through a statistical analysis of quality for all
mailings submitted during a defined period. For each program, the
analysis covered all applicable mailer types and excluded outlier data.
If the threshold is reevaluated in the future, Green & Secure
mailpieces would naturally be included in the analysis because they
will be counted in the denominator of the Address Quality Census
Measurement and Assessment Process error percentage.
Mailer Comment: We request that any solution continues to allow
mailers to accurately measure and compare the
[[Page 14371]]
quality of various mailings by providing data feedback.
USPS Response: As described in the proposed rule, the Postal
Service will provide data feedback through the Mailer Scorecard. The
total number of mailpieces using the Green & Secure option will be
reported under the eDoc Submitter CRID through a dedicated field on the
Mailer Scorecard. In addition, if a mailpiece is associated with a COA
that is between 95 days and 18 months old, and the address has not been
updated, a COA warning for the associated IMb would be logged and
allocated under the CRID of the eDoc submitter in the Mailer Scorecard.
Mailer Comment: It is unclear whether mailers will still need to
comply with the USPS Move Update requirement stated in DMM section
602.5.1.a.
USPS Response: Green & Secure is an Address Change Service option
under which mailpieces must be updated pursuant to the Move Update
standard in DMM 602.5.1. The Green & Secure option exempts qualifying
pieces from assessment through the Address Quality Census Measurement
and Assessment Process. Mailers participating in the Green & Secure
option must update their mailpieces with the updated address using at
least one USPS approved method even though any Green & Secure
mailpieces with COA errors will not count as such under the Address
Quality Census Measurement and Assessment Process. As noted in response
to a previous comment, Green & Secure does not exempt mailers from
USPIS audits or assessments. However, the Inspection Service will not
initiate Move Update investigations unless non-compliance from a mailer
has been demonstrated to be a routine and repeatable practice despite
an opportunity, through communications from Mail Entry with the mailer,
to correct the practice.
Move Update Standard
Pursuant to Postal Service regulations, compliance with the Move
Update standard is a basic eligibility requirement for mailers of all
USPS Marketing Mail and First-Class Mail letters and flats using
commercial automation and presort rates. The Move Update standard
requires mailers to update addresses for which a change of address
(COA) order exists within a specified period of time. By requiring
mailers to comply with the Move Update standard, the Postal Service
aims to improve address quality and ensure mailpieces reach their
intended recipients, which benefits both the Postal Service and its
customers. The Move Update standard also is intended to reduce mail
processing and delivery costs for the Postal Service.
Today, mailers can meet the Move Update standard using the USPS-
approved methods of Address Change Service (ACSTM),
NCOALink[supreg], or Ancillary Service Endorsements. In addition,
mailers of First-Class Mail may apply to use one of two alternative
methods, 99 Percent Accuracy or Legal Restraint, which are available
under the following limited circumstances:
[ssquf] 99 Percent Accuracy Method: This method is available to
mailers who enter First-Class Mail and demonstrate that their internal
list management maintains address quality at 99 percent or greater
accuracy for COAs.
[ssquf] Legal Restraint Method: This method is available to mailers
who enter First-Class Mail pieces and demonstrate that a legal
restriction prevents them from updating their customer's address
without direct contact from the customer.
The overarching goal of the Move Update standard is to reduce the
incidence of undeliverable-as-addressed (UAA) mail, which is costly for
the Postal Service because UAA pieces must be forwarded, returned, or
discarded, and costly for mailers because these pieces fail to reach
their intended recipients. The Postal Service incurs the most costs
returning pieces, while discarding UAA pieces imposes the lowest cost.
The 2017 per-piece cost for each disposition type (Automation and
presort FCM only) is shown below:
------------------------------------------------------------------------
Per-piece
Disposition Type cost--all
shapes
------------------------------------------------------------------------
Return.................................................. $0.40
Forward................................................. 0.20
Discard................................................. 0.12
------------------------------------------------------------------------
First-Class Mail UAA pieces represent most of the Postal Service's
costly return-to-sender volume; a First-Class Mail mailpiece must be
returned-to-sender if it is associated with a COA record that is more
than 12 months old, or if it is otherwise identified as UAA as
specified in DMM 507.1.5.1. In 2017, the Postal Service discarded only
3 percent of First-Class Mail UAA pieces; in comparison, 98.5 percent
of USPS Marketing Mail UAA pieces were discarded. The reason for this
discrepancy is that UAA USPS Marketing Mail pieces are destroyed unless
the mailers pays for forwarding or return after requesting those
services using an ancillary service endorsement.
Future Process--New Address Change Service Option
While the focus of the Postal Service's Move Update program has
been to reduce the amount of UAA mail, the Postal Service recognizes
that not all UAA mail can be eliminated. The Postal Service wants to
reduce the cost to the Postal Service of the remaining UAA mail. The
Postal Service is therefore introducing the Green & Secure option,
which utilizes the existing Change Service Requested STIDs under the
ACS Program. This will both reduce the volume of return-to-sender mail
and reduce mailers' risk of assessment through the AQCMAP, a new method
of verifying that mailers have updated their addresses using a USPS-
approved Move Update method, which started March 1, 2018. An exemption
from AQCMAP fees will provide a needed incentive for more mailers to
mark their mail for destruction rather than return to the mailer.
Green & Secure will be a USPS-approved Address Change Service
option for First-Class Mail and USPS Marketing Mail letter and flat-
size pieces that meet the requirements for presort, Basic automation,
and Full-Service automation mailings. This option will utilize the
existing ACS Change Service Requested STIDs. Under Green & Secure,
mailers have two options for mailpiece disposal; recycle the mailpiece
or securely destroy the mailpiece. Recycling of mailpieces is available
for First-Class Mail and USPS Marketing Mail letters and flats. Secure
Destruction is currently available for First-Class Mail letters. If the
mailer is using Address Change Service as the Move Update method,
updated address information received via ACS for undeliverable Green &
Secure pieces must be used to update the mailing list. Mailers
participating in the Green & Secure option may also use another
approved method listed in DMM 602.5.2 to meet the Move Update standard.
The ACS Change Service Requested STID will be available for use on
First-Class Mail and USPS Marketing Mail pieces. Mailers must enroll
for ACS notice fulfillment, unless using a Full-Service ACS requested
STID, with the Postal Service ACS Department at the National Customer
Support Center in Memphis, Tennessee, (877-640-0724 (Option 1) or
[email protected]). First-Class Mail and USPS Marketing Mail pieces that
have an ACS Change Service Requested STID in the Intelligent Mail
barcode (IMb) and are identified as UAA will be discarded and recycled
rather than returned-to-sender.
[[Page 14372]]
The Secure Destruction STID will continue to be available for use
on First-Class Mail pieces only. First-Class Mail mailers already
participating in Secure Destruction service and utilizing an approved
Secure Destruction STID will continue to have their UAA mailpieces
destroyed and recycled in a secure manner. Secure Destruction
participation requires mailers to register their Mailer ID with the
Postal Service's ACS Department prior to using the Secure Destruction
STID in their IMbs. Under Secure Destruction, mailpieces are shredded
by Postal Service employees at Postal Service facilities, which renders
the pieces unreadable prior to recycling. Secure Destruction shreds
mailpieces to a size that is more stringent than the standards set
forth by the National Association for Information Destruction and
common industry practice in the United States for documents with
sensitive and/or confidential information.
For mailpieces bearing a STID for ACS Change Service Requested,
with or without Secure Destruction, the Postal Service will provide
mailers with an electronic ACS notification indicating that the piece
is UAA. Green & Secure will continue the process of providing First-
Class Mail mailers that use the Secure Destruction STID with an
additional electronic notification to indicate when and where the
mailpiece was processed and securely shredded.
Green & Secure will continue to provide mailers with two
disposition options for their mailpieces:
[ssquf] Option 1: Postal Service discards or securely destroys all
UAA mailpieces.
[ssquf] Option 2: Postal Service provides forwarding if the
mailpiece corresponds with a valid COA record that is less than 1-year
old. All other UAA mail is discarded or securely destroyed, subject to
the corresponding conditions described in DMM Section 507.1.0.
While there is no additional charge for forwarding of First-Class
Mail, USPS Marketing Mail that is forwarded under Option 2 will be
charged the appropriate per piece forwarding fee for the mail shape.
Address Quality Census Measurement and Assessment Process
In August 2017, the Postal Service gained regulatory approval from
the Postal Regulatory Commission (PRC) for the AQCMAP in PRC Docket No.
R2017-7 (available publicly at prc.gov). The Postal Service followed-up
the PRC's approval with a final rule adopting conforming changes to the
DMM that was published in the Federal Register on October 24, 2017 (82
FR 49123-49128). As previously stated, the Postal Service has delayed
implementation, and will begin verifying and assessing mailers under
this new verification method in April 2018 for COA errors incurred in
March 2018. Mailpieces using the Green & Secure Address Change Service
option will not be assessed under the Address Quality Census
Measurement and Assessment Process. These mailpieces will be included
in the mailer's total Move Update Eligible Piece count, which is the
denominator in the calculation of the mailer's total error percentage
in the AQCMAP. While mailpieces with COA errors will not be included in
the numerator in this calculation, Move Update validations will still
be performed on Green & Secure pieces to provide visibility into mail
quality, and the results of the Green & Secure validations will be
reported separately in the Mailer Scorecard.
Mailer Scorecard
The Mailer Scorecard is currently available to mailers, providing
data that allow mailers to gauge address quality on their mailpieces.
Under Green & Secure, the Mailer Scorecard will continue to be a
valuable tool in assisting mailers to improve their address quality and
update their address in accord with the Move Update standard. The total
number of mailpieces using the Green & Secure option will be reported
under the eDoc Submitter CRID through a dedicated field on the Mailer
Scorecard. In addition, if a mailpiece is associated with a COA that is
between 95 days and 18 months old, and the address has not been
updated, a COA warning for the associated IMb will be logged and
allocated under the CRID of the eDoc submitter in the Mailer Scorecard.
As noted previously, the total number of mailpieces using the Green &
Secure STIDs will also be included in the Move Update eligible pieces
metric on the Mailer Scorecard.
Criteria
Mailers will be able to use the Green & Secure Address Change
Service option when they:
[ssquf] Use a unique Basic or Full Service IMb on mailings of
letter- and flat-size pieces for First-Class Mail and USPS Marketing
Mail;
[ssquf] Use eDoc to submit mailing information and include piece
level detail (by piece or piece range);
[ssquf] Contact the Postal Service's ACS Department, for non-Full-
Service mailers who wish to use a Basic ACS Change Service Requested
STID, and all mailers seeking to use the Secure Destruction STID.
Specification
The Postal Service is including existing Change Service Requested
STIDs under the Green & Secure option available through Address Change
Service. Mailers may participate in the Green & Secure option as
follows:
[ssquf] Mailers will utilize an ACS Change Service Requested STID
on First-Class Mail or USPS Marketing Mail, or an ACS Change Service
Requested Secure Destruction STID on First-Class Mail.
[ssquf] Mailpieces bearing these STIDs will be counted toward the
mailer's total Move Update Eligible Pieces, which is the denominator in
the calculation of the error percentage in the AQCMAP, but will not be
included in the numerator or otherwise subject to the Move Update
assessment charges even if the pieces have a COA error.
[ssquf] Mailpieces bearing these STIDs that are UAA will be
discarded or securely destroyed by the Postal Service; electronic
notification and information via the Mailer Scorecard will be provided.
Mailpiece Results
Once qualifying mailings are processed on mail processing
equipment, the data from the mailpieces will be reconciled with eDoc.
These results will be available on the Business Customer Gateway and
displayed on the Electronic Verification tab of the Mailer Scorecard,
which will be easily accessible at https://gateway.usps.com/eAdmin/view/signin. Mailers will be able to review the Mailer Scorecard and
corresponding detailed reports to identify any anomalies or issues. To
resolve Mailer Scorecard irregularities, mailers will continue to be
able to contact the PostalOne! Help Desk at 800-522-9085 or their local
Business Mail Entry Unit (BMEU).
List of Subjects in 39 CFR Part 111
Administrative practice and procedure, Postal Service.
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.
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); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101,
[[Page 14373]]
401, 403, 404, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621,
3622, 3626, 3632, 3633, and 5001.
0
2. Revise the 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)
* * * * *
500 Additional Mailing Services
* * * * *
507 Mailer Services
* * * * *
4.0 Address Correction Services
* * * * *
4.2.2 Service Options
[Revise the introductory text of 4.2.2 to read as follows:]
ACS offers five levels of service, as follows: * * *
[Add new sections 4.2.2d. and 4.2.2e. to read as follows:]
d. A Full-Service option available to mailings of First-Class Mail
automation cards, letters, and flats; USPS Marketing Mail automation
letters and flats; USPS Marketing Mail Carrier Route, High Density, and
Saturation letters; Periodicals Outside County barcoded or Carrier
Route letters and flats; Periodicals In-County automation or Carrier
Route letters and flats; and Bound Printed Matter Presorted, non-DDU
barcoded flats. Mailers who present at least 95 percent of their
eligible First-Class Mail and USPS Marketing Mail volume as Full
Service in a calendar month would receive electronic address correction
notices for their qualifying Basic automation and non-automation First-
Class Mail and USPS Marketing Mail pieces, at the address correction
fee for pieces eligible for the Full Service Intelligent Mail option as
described in DMM 705.23.0 for future billing cycles. The Basic
automation and non-automation First-Class Mail and USPS Marketing Mail
mailpieces must:
1. Bear a unique IMb printed on the mailpiece;
2. Include a Full Service or OneCode ACS STID in the IMb;
3. Include the unique IMb in eDoc;
4. Be sent by an eDoc submitter:
a. Providing accurate Mail Owner identification in eDoc, and;
b. Maintaining 95 percent Full Service compliance to remain
eligible for this service and undergo periodic Postal Service re-
evaluation.
e. Green & Secure: Mailpieces using a STID for ACS Change Service
Requested, with or without Secure Destruction, will not be subject to
assessment under Move Update Verification, using the Address Quality
Census Measurement and Assessment Process under 602.5.3. Details are
available in Publication 685, Publication for Streamlined Mail
Acceptance for Letters and Flats, available at: www.postalpro.usps.com.
* * * * *
600 Basic Standards for All Mailing Services
* * * * *
602 Addressing
* * * * *
5.0 Move Update Standards
* * * * *
[Revise the heading and text of 5.3 to read as follows:]
5.3 Move Update Verification
Mailers who submit any Full-Service volume in a calendar month will
be verified pursuant to the Address Quality Census Measurement and
Assessment Process beginning in the next calendar month. First-Class
Mail and USPS Marketing Mail letter and flat-size mailpieces with
addresses that have not been updated in accordance with the Move Update
Standard will be subject to the Move Update assessment charge, if
submitted via eDoc with unique Basic or Full Service IMbs. Supporting
details are described in Publication 685, Publication for Streamlined
Mail Acceptance for Letters and Flats, available at:
www.postalpro.usps.com. The Move Update assessment charge will be
assessed if:
a. The percent of all qualifying mailpieces submitted in a calendar
month that have a COA error is greater than the 0.5 percent error
threshold, as determined by an analysis of the data captured by mail
processing equipment. Qualifying mailpieces using a Green & Secure
Change Service Requested STID will be included in the count of all
qualifying mailpieces submitted in a calendar month, but will be
excluded from assessment.
b. Each mailpiece with an address containing COA errors in excess
of the error threshold will be assessed the Move Update assessment
charge.
* * * * *
We will publish an appropriate amendment to 39 CFR part 111 to
reflect these changes.
Tracy A. Quinlan,
Attorney, Federal Compliance.
[FR Doc. 2018-06743 Filed 4-3-18; 8:45 am]
BILLING CODE 7710-12-P