[Federal Register Volume 85, Number 90 (Friday, May 8, 2020)]
[Rules and Regulations]
[Pages 27299-27301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08625]


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POSTAL SERVICE

39 CFR Part 111


Seamless Changes for Detached Mail Unit (DMU) and Full-Service 
Mailings

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal ServiceTM is revising Mailing Standards 
of the United States Postal Service, Domestic Mail Manual (DMM[supreg]) 
to require Detached Mail Unit (DMU) mailers and mailers that enter 
full-service mailings at a Business Mail Entry Unit (BMEU) to 
participate in Seamless Parallel by June 1, 2020. In addition, the 
Postal Service provides advance notice of its intent: To require all 
mailers with an authorized Detached Mail Unit to enroll in the Seamless 
Acceptance Program by May 1, 2021; and to verify all BMEU-entered full-
service mailings using only automated sampling and verification 
processes beginning July 1, 2021.

DATES: Effective June 1, 2020.

FOR FURTHER INFORMATION CONTACT: Lance Bell at (407) 782-2972, or 
Jacqueline Erwin at (202) 268-2158.

SUPPLEMENTARY INFORMATION:

Background

    Seamless Acceptance leverages electronic documentation (eDoc) and 
the Intelligent Mail[supreg] barcodes (IMbs) on all containers, 
handling units, and mailpieces required under full-service. Mailpiece 
scans collected from mail processing equipment (MPE) and samples from 
hand-held scanning devices are reconciled to the mailer eDoc to confirm 
proper mail preparation for discounts claimed and confirm correct 
postage payment. This capability avoids the need for verification of 
mail at acceptance.
    The Postal Service published a notice of proposed rulemaking on 
January 8, 2020 (85 FR 856-859), to require mailers with authorized 
Detached Mail Units (DMU) and mailers that enter full-service mailings 
at a Business Mail Entry Unit (BMEU) to participate in Seamless 
Parallel by March 1, 2020. In addition, the Postal Service provided 
advance notice of its intent to require DMU mailers to enroll in the 
Seamless Acceptance Program by February 1, 2021. Moreover, the Postal 
Service provided advance notices of its intent to verify all full-
service mailings entered at a BMEU using automated sampling and 
verification processes, beginning July 1, 2021.
    The Postal Service received many insightful comments and questions 
from the mailing community in response to the proposed rule of January 
8, 2020. In response to those comments, the Postal Service incorporates 
the following changes into this final rule, and notes that aside from 
these changes, Seamless Acceptance plans have not changed in substance 
from the proposed rule of January 8, 2020:
     Mailers with authorized DMUs and mailers entering full-
service mailings at BMEUs must enroll in Seamless Parallel by June 1, 
2020 (instead of March 1, 2020).
    In addition, the Postal Service intends to propose the following 
regulatory changes in a future rulemaking:
     Mailers with authorized DMUs, as a condition of their DMU 
authorization, must participate in Seamless Acceptance by May 1, 2021;
     Full-Service mailings entered at BMEUs will begin to be 
verified using only automated sampling and verification processes on 
July 1, 2021.

Comments on Seamless Changes for Detached Mail Unit (DMU) and Full-
Service Mailings and USPS Responses

    The Postal Service received seven formal responses on the Seamless 
changes for Detached Mail Unit (DMU) and Full-Service Mailings 
proposal. Six formal responses included comments on more than one 
issue.

Incentive for Mailers To Adopt Seamless Acceptance

    Five comments encouraged the USPS[supreg] to provide an incentive 
for mailers to defray costs incurred from migrating to Seamless 
Acceptance. Respondents claim that there is a significant cost impact 
to business (above and beyond full-service IMb participation) to 
participate in Seamless Acceptance, and that the USPS should provide an 
incentive to offset the investment and ongoing costs incurred by 
mailers.

USPS Response

    USPS will continue to work collaboratively with industry 
stakeholders to minimize any cost impact to mailers that adopt Seamless 
Acceptance. The Postal Service notes that new rates, including 
incentives, must be authorized by the Governors of the Postal Service 
and reviewed by the Postal Regulatory Commission.

Piece Weights May Cause Assessments

    Four comments stated that varying piece weights may cause a mailer 
to be susceptible to an assessment. Respondents claim this is 
especially true for flat-size pieces susceptible to environmental 
impacts (e.g., humidity).

USPS Response

    USPS has initiated the creation of a Task Team (MTAC TT-30) to work 
collaboratively with industry stakeholders. USPS will consider 
recommendations from MTAC TT-30.

Images of Mailpieces To Assist With Undocumented Errors

    Four comments encourage USPS to provide mailers with images of 
undocumented pieces and other mailer scorecard errors so they can 
identify the specific mailer or mailing to investigate and resolve mail 
quality issues.

USPS Response

    USPS will continue to explore the feasibility of this proposal.

The Timeline for Mandating Seamless Acceptance for DMUs

    Three comments had concerns that the intended February 1, 2021 date 
was too close to implementation of the January 2021 price change. Price 
changes require significant resources and commenters are concerned that 
their resources will be limited and will not be ready by February 1, 
2021.

USPS Response

    As previously indicated, the USPS recognizes the industry concern 
with the proposed dates and has made the following changes:
     Seamless Parallel enrollment must be completed by June 1, 
2020.
     Intended date to require DMU sites to Seamless changed to 
May 1, 2021.
     Verification of BMEU full-service mailings intended to 
begin on July 1, 2021.

General Overall Timeline and Deadline To Adopt Seamless Acceptance

    Three comments voice concerns on the general timeline in terms of 
USPS ability to provide the necessary education, training, and customer 
service needed for mailers to adopt Seamless Acceptance.

USPS Response

    USPS has provided extensive internal and external training on the 
Streamlined Mail Entry Programs. The Mail Entry

[[Page 27300]]

staff will be able to effectively manage the influx of new Seamless 
mailers. In addition, USPS has created a centralized Mailing and 
Shipping Solutions Center (MSSC) with specially trained personnel to 
answer mailer questions and provide information. USPS continues to 
emphasize ongoing internal training to ensure USPS staff have the most 
up-to-date training and tools necessary to assist mailers with any 
concerns or issues that may arise.

Legacy Verifications at Acceptance To Avoid Assessments

    One comment stated that the customer was using legacy verifications 
as their quality control to avoid un-foreseen assessments.

USPS Response

    Seamless Acceptance and the automated sampling and verification 
processes provide mailers with the opportunity to view their mail 
quality metrics throughout the month utilizing the Mailer Scorecard. 
The Mailer Scorecard is updated each night with current Mail Quality 
Metric reporting, enabling mailers to diagnose errors and implement 
changes prior to being assessed. The Scorecard provides a daily update 
informing the customer of any potential assessments that could be 
levied if the mail quality metric continues to exceed the posted error 
threshold.

``After the Fact'' Postage Assessment

    One comment expressed a concern of a potential assessment after a 
mailing has been accepted and entered into the mailstream, without a 
chance to avoid the assessment by fixing the mailing.

USPS Response

    The Postal Service works collaboratively with mailers to provide 
advice and guidance throughout the month on Mailer Scorecard issues. 
Mailers start in the Seamless Parallel process to gauge how they would 
have performed under Seamless verifications; no assessments are imposed 
during Seamless Parallel. Seamless Parallel provides mailers 
opportunities to gather information and correct issues prior to moving 
to Seamless Acceptance. During this Seamless Parallel process USPS 
works with mailers to mitigate Mailer Scorecard errors and prepare 
mailers to adopt Seamless Acceptance.

Impact on Exceptional Dispatch Periodicals, Associate Office 
Acceptance, and Updated Guides

    Several other comments mentioned the Seamless Acceptance impact on 
Exceptional Dispatch for Periodicals mailings, mailings accepted at 
local associated offices (AO), and when updated guides would be posted.

USPS Response

    There is no impact to Exceptional Dispatch Periodicals mailings. 
Customers would continue to drop at the sites that are currently 
established drop locations as part of their Exceptional Dispatch. 
Mailings at smaller AOs will continue as they currently do today. The 
updated Guide to the Mailer Scorecard and Publication 685, Publication 
for Streamlined Mail Acceptance for Letters and Flats will be posted on 
PostalPro in April 2020.

Non-Acceptance Detached Mail Unit (DMU) Duties if DMU Closes

    Further comments inquired into the impact Seamless Acceptance will 
have on the other non-acceptance duties performed at a DMUs like 
Certificates of Mailing, and questioned whether DMUs may be closed.

USPS Response

    Due to the automated verification processes, DMU sites enrolled in 
Seamless Acceptance will experience a reduced presence of USPS 
personnel onsite. Other duties such as Certificates of Mailings and 
non-acceptance duties will be completed when the clerk is on site for 
Seamless samplings. It is not the intent of the Postal Service to close 
DMUs but rather to require adoption of Seamless Acceptance by May 1, 
2021, as a condition of DMU authorization. When mailers submit the PS 
Form 3834, Detached Mail Unit Authorization Application, they agree to 
prepare mailings in accordance with applicable standards in the DMM. 
Any DMU mailer that anticipates they will be unable to comply with 
Seamless Acceptance requirements by May 1, 2021 will be required to 
request an extension by February 1, 2021.

Availability of Resources To Navigate Seamless Acceptance

    Additional comments related to the available resources for industry 
to train and educate their staff.

USPS Response

    There are tremendous amounts of resources currently available to 
customers including web based searches on PostalPro and Postal 
Explorer. Fact sheets, process guides, and publications are available 
on those sites. Mailers may also reach out to the Mailing and Shipping 
Solutions Center (MSSC), PostalOne! or Facility Access & Shipment 
Tracking (FAST) helpdesks for information.

``Just in Time'' Payment and Auto Finalization Impact

    Commenters wondered how auto finalization affects the balance of 
the permit when some clients of mail preparers pay just prior to 
mailing. Client's permits sometimes have insufficient funds on deposit. 
Is there a way for USPS to alert mail preparers when one of the client 
permits has insufficient funds?

USPS Response

    Auto finalization puts control in the mailers' hands. The process 
has not changed and sufficient funds must be in the account at the time 
of mailing. Under current standards specified in DMM Sec.  705.22.3, 
mailings accepted under Seamless auto finalize even if one of the 
permits in the mailing does not have sufficient funds in combined 
mailings. This allows mailings to be accepted without delay.

eInduction Participation and Container Placard Requirement for Small 
Mailings

    Two different comments were submitted seeking clarity on eInduction 
requirements for BMEU-entered mailings and potential impact on 
container requirements.

USPS Response

    No, BMEU mailers will not be required to participate in eInduction 
unless they elect to enroll in Seamless Acceptance. eInduction is a 
requirement of Seamless Acceptance for all drop shipment mailings. When 
the hardcopy PS 8125, Plant-Verified Drop Shipment (PVDS) would have 
been used. This allows mailers to enter mailings without using the 
hardcopy form. Mailers will continue to follow the current placarding 
under Publication 685, Publication for Streamlined Mail Acceptance for 
Letters and Flats available on PostalPro.

Undocumented Mail and Postal Automated Redirection System (PARS) 
Operations

    One comment stated that USPS is causing undocumented mail on the 
mailer's scorecard by changing the IMb on the mailpiece to start with 
``93''.

USPS Response

    USPS does update mailpieces that go through PARS operations. These 
pieces will have their IMb ``Type'' updated to ``93'' and the Address 
(Delivery Point) information is changed to the new address. The changed 
IMb no longer matches the original IMb contained in eDoc. In the past, 
this resulted in the piece being erroneously reported as

[[Page 27301]]

undocumented. However, to keep these pieces from being reporting 
erroneously as undocumented in mailer scorecards, USPS implemented 
system logic to recognize that the ``93'' IMb type indicated a changed 
IMb. Prior to reporting a piece as undocumented, USPS drops the ``93'' 
and New Address portion of the IMb and attempts to match the remainder 
of the original IMb--STID, MID, Serial Number--combination to an eDoc. 
Only if a match is not found with the remaining STID, MID, Serial 
Number combination would the piece be reported as undocumented.

Mailers That Do Not Adopt Seamless Acceptance by July 1, 2021

    One comment wanted to know what would happen if they did not adopt 
Seamless Acceptance by the July 1, 2021 deadline.

USPS Response

    USPS clarifies that there is no July 1, 2021 ``deadline'' for 
mailers. Rather, that is the date on which the Postal Service intends 
to begin verifying all Full-Service mailings entered at BMEUs using 
automated verification processes. BMEU mailers would not be required to 
prepare or enter their mail differently. All other mailings will 
continue to be verified using manual verification methods.

USPS Should Create a Roadmap

    One comment mentions that there used to be a roadmap and wanted to 
know if USPS has updated it and where it can be found.

USPS Response

    We have an updated Roadmap available, by searching ``CIO Roadmap'' 
on PostalPro at: https://postalpro.usps.com/usps-roadmap#!/category/mail-acceptance-payment.

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, 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)

* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

22.0 Seamless Acceptance Program

22.1 Description

    [Revise the text of 22.1 to read as follows:]
    Seamless Acceptance leverages electronic documentation (eDoc) and 
Intelligent Mail barcodes (IMbs) on containers, handling units and 
mailpieces that full-service provides. Mailpiece scans collected from 
USPS mail processing equipment (MPE) and samples from hand held 
scanning devices are reconciled to the mailer eDoc to confirm proper 
mail preparation for the discounts claimed and postage paid. Seamless 
Acceptance is available for First-Class Mail cards, letters, and flats, 
Periodicals, USPS Marketing Mail letters and flats, and Bound Printed 
Matter flats.
    [Revise the title and text of 22.2 to read as follows:]

22.2 Seamless Participation

    Mailers may initiate participation in the Seamless Acceptance 
Program by contacting a local BMEU or the PostalOne! Helpdesk at 1-800-
522-9085.

22.3 Basic Standards

    [Add new heading 22.3.1, General, and move text from 22.3 as new 
22.3.1.]

22.3.1 General

* * * * *
    [Revise the text of item c to read as follows:]
    c. Participate in the Seamless Parallel Program under 22.3.2
* * * * *
    [Add new subsection 22.3.2 to read as follows:]

22.3.2 Seamless Parallel Program

    Detached Mail Unit (DMU) mailers and mailers that enter full-
service mailings at a Business Mail Entry Unit (BMEU) must participate 
in the Seamless Parallel Program. Additional information on the 
Seamless Parallel Program is available in Publication 685, Publication 
for Streamlined Mail Acceptance for Letters and Flats, available at: 
https://postalpro.usps.com/StreamlinedMailAcceptLettersFlatsPub685.
* * * * *

23.0 Full-Service Automation Option

* * * * *

23.3 Fees

23.3.1 Eligibility for Exception to Payment of Annual Fees and Waiver 
of Deposit of Permit Imprint Mail Restrictions

    Mailers who present automation or presort mailings (of First-Class 
Mail cards, letters, and flats, USPS Marketing Mail letters and flats, 
or Bound Printed Matter flats) that contain 90 percent or more full-
service eligible mail as full-service, and 75 percent of their total 
mail is eligible for full-service incentives, are eligible for the 
following exceptions to standards:
* * * * *
    [Revise the text of item c to read as follows:]
    c. If any mailing falls under the 90-percent and 75-percent full-
service thresholds for qualified full-service mailings, the annual 
mailing fee will be due and the mailing verification date will become 
the renewal or anniversary date of the permit fees. The full-service 
percentage will automatically set to 0 percent on each subsequent 
anniversary date. The first mailing presented after the anniversary 
date begins the cumulative process for the full-service percentage 
calculation. If the first mailing presented after the anniversary date 
is below 90 percent, the annual fee will need to be paid prior to the 
mail being finalized. Once the annual fees are paid, the next 
validation date will be the next anniversary date.
    [Delete item c2 in its entirety:]
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

Joshua J. Hofer,
Attorney, Federal Compliance.
[FR Doc. 2020-08625 Filed 5-7-20; 8:45 am]
 BILLING CODE 7710-12-P