[Federal Register Volume 90, Number 61 (Tuesday, April 1, 2025)]
[Rules and Regulations]
[Pages 14338-14341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-05514]


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POSTAL SERVICE

39 CFR Part 111


Priority Mail Express Service Standard

AGENCY: Postal ServiceTM.

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]) in various 
sections to refine the service standard for domestic retail and 
commercial Priority Mail Express[supreg] delivery service.

DATES: Effective Date: April 1, 2025.

FOR FURTHER INFORMATION CONTACT: Catherine Knox at (202) 268-5636 or 
Garry Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: The Postal Service is refining the service 
standard for domestic retail and commercial Priority Mail Express 
service to align with operational initiatives that the Postal Service 
is implementing on a nationwide basis to fundamentally transform our 
processing and transportation networks to achieve greater operational 
precision and efficiency, significantly reduce costs, and enhance 
service pursuant to the Delivering for America strategic plan (DFA 
Plan). These operational initiatives will comprehensively transform the 
Postal Service's operations to address problems that exist today and 
create a network that enables the integrated movement of mail and 
packages in a precise and cost-effective manner consistent with best 
business practice far into the future. They should also lead to 
substantial cost savings (conservatively estimated at between $3.6 to 
$3.7 billion annually), which is critical given the Postal Service's 
current poor financial

[[Page 14339]]

condition, which can be addressed only through comprehensive changes to 
reduce costs and increase efficiency (in conjunction with the other 
elements of the DFA Plan). To implement these initiatives and achieve 
these cost savings, the Postal Service must refine its service 
standards for all products, including Priority Mail Express.
    The current Priority Mail Express service standard requires the 
Postal Service to conduct separate trips to drop off destinating volume 
from the processing network to collection/delivery facilities in the 
morning for delivery that day, and then pick-up originating volume from 
the collection/delivery facilities to the processing network in the 
afternoon, or alternatively pay Highway Contract Route contractors to 
layover for multiple hours between the outbound and return legs of 
their routes. Many of these trips transport low amounts of volume to 
and from collection/delivery facilities that are far from the Postal 
Service's processing facilities. The Postal Service's Regional 
Transportation Optimization (RTO) initiative will eliminate some of the 
costs and inefficiencies associated with these excess trips by allowing 
certain mail and packages to be picked up the next day from the Post 
Office on the same trip that also dropped off mail at that Post Office 
for delivery that day. The Postal Service will designate 5-digit ZIP 
Codes for RTO when a retail/collection facility servicing that 5-digit 
ZIP Code is more than 50 miles from the originating Regional Processing 
and Distribution Center or Campus (RPDC), though exceptions may apply 
based on operational or business considerations. Under the new service 
standard, many packages will receive the same service standard, while 
some packages would have a service expectation that is one delivery day 
longer than the current expectation.
    On October 4, 2024, the Postal Service requested from the Postal 
Regulatory Commission (PRC) an advisory opinion on the service standard 
changes needed to implement RTO, including those described herein, 
together with a comprehensive strategy of network modernization, in 
accordance with 39 U.S.C. 3661(b). The PRC then initiated Docket No. 
N2024-1, in which the PRC's Presiding Officer, its appointed Public 
Representative, and members of the public were given an opportunity to 
actively participate. The PRC also conducted a formal hearing with 
testimony on the record. The Postal Service's proffered evidence 
demonstrates significant benefits to implementing these operational 
initiatives and corresponding service standards consistent with the 
policies enumerated in Title 39 of the United States Code: user-
friendly service standards formulated at the 5-digit Zip Code level; 
significant cost savings from productivity enhancements, consolidated 
local transportation trips, streamlined transportation between 
facilities within the redesigned network, an air network reoriented 
around RPDCs, lease terminations, and facility closures, all of which 
are critically important to achieving long-term financial 
sustainability; and ultimately, more reliable, predictable, 
sustainable, and consistent service. The proceeding culminated in an 
advisory opinion issued by the PRC on January 31, 2025. A description 
of the advisory opinion and the Postal Service's response was published 
in the Federal Register on February 28, 2025, and is available here: 
https://www.federalregister.gov/documents/2025/02/28/2025-03168/service-standards for market dominant mail products.
    As a result of this final rule, Priority Mail Express delivery 
service will have a 1-day, 2-day, or 3-day service standard depending 
on various factors, including the date on which the item is accepted by 
the Postal Service and the origin and destination 5-digit ZIP Code. 
This revision to refine the Priority Mail Express service standard will 
not affect any other current product features. Priority Mail Express 
will continue to be a money-back guaranteed product with delivery 
available 7 days a week in certain areas.
    The Postal Service adopts the described changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations.
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    Accordingly, the Postal Service amends Mailing Standards of the 
United States Postal Service, Domestic Mail Manual (DMM), incorporated 
by reference in the Code of Federal Regulations as follows (see 39 CFR 
111.1):

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, 401-404, 414, 416, 3001-3018, 3201-3220, 3401-
3406, 3621, 3622, 3626, 3629, 3631-3633, 3641, 3681-3685, and 5001.


0
2. Revise 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)

* * * * *

100 Retail Mail Letters, Cards, Flats, and Parcels

* * * * *

110 Retail Mail Priority Mail Express

113 Prices and Eligibility

1.0 Prices and Fees

* * * * *

4.0 Service Features of Priority Mail Express

* * * * *
    [Revise the heading of 4.2 to read as follows:]

4.2 Priority Mail Express Delivery

4.2.1 Availability

    [Revise the text of 4.2.1 to read as follows:]
    Priority Mail Express offers delivery in 1, 2, or 3 delivery days 
depending on various factors, including the date on which the item is 
deemed accepted by the Postal Service and the origin and destination 
ZIP Codes.

4.2.2 Acceptance

    [Revise the text of 4.2.2 to read as follows:]
    Priority Mail Express items must be presented no later than the 
local Post Office acceptance time. Priority Mail Express items mailed 
after the local Post Office acceptance time are deemed to have been 
mailed on the next day the office is open, subject to the standards for 
this service.

4.2.3 Delivery Time

    [Revise the first sentence of 4.2.3 to read as follows:]
    Items are delivered by 6 p.m. on the scheduled delivery day. If 
delivery is not made, the addressee is notified.* * *

4.2.4 Hold for Pickup

    [Revise the text of 4.2.4 to read as follows:]
    Except for Priority Mail Express mailpieces containing cremated 
remains, under Hold for Pickup service, items presented under 4.2 are 
available for pickup by the addressee at the destination facility by 6 
p.m. of the scheduled delivery day that the destination office is open 
for retail business.

[[Page 14340]]

    [Delete 4.3, Priority Mail Express 2-Day Delivery, in its entirety 
and renumber 4.4 as 4.3.]
* * * * *

115 Mail Preparation

* * * * *
    [Revise the heading of 2.0 to read as follows:]

2.0 Priority Mail Express Labels

2.1 Mailing Label

    [Revise the introductory text of 2.1 to read as follows:]
    Priority Mail Express items must be labeled as follows:
* * * * *
    [Delete 2.3, ZIP Code Determination, in its entirety.]
* * * * *

116 Deposit

    [Revise the heading of 1.0 to read as follows:]

1.0 Priority Mail Express Deposit

* * * * *

200 Commercial Letters, Cards, Flats, and Parcels

* * * * *

210 Commercial Mail Priority Mail Express

213 Prices and Eligibility

1.0 Prices and Fees

* * * * *

4.0 Service Features of Priority Mail Express

* * * * *
    [Revise the heading of 4.2 to read as follows:]

4.2 Priority Mail Express Delivery

4.2.1 Availability

    [Revise the text of 4.2.1 to read as follows:]
    Priority Mail Express offers delivery in 1, 2, or 3 delivery days 
depending on various factors, including the date on which the item is 
deemed accepted by the Postal Service and the origin and destination 
ZIP Codes.

4.2.2 Acceptance

    [Revise the text of 4.2.2 to read as follows:]
    Priority Mail Express items must be presented no later than the 
local Post Office acceptance time. Priority Mail Express items mailed 
after the local Post Office acceptance time are deemed to have been 
mailed on the next day the office is open, subject to the standards for 
this service.

4.2.3 Delivery Time

    [Revise the first sentence of 4.2.3 to read as follows:]
    Except for items endorsed ``Guaranteed by End of Day'' per an 
approved customer agreement, items are delivered by 6 p.m. on the 
scheduled delivery day.* * *

4.2.4 Hold for Pickup

    [Revise the text of 4.2.4 to read as follows:]
    Except for Priority Mail Express mailpieces containing cremated 
remains, under Hold for Pickup service, items presented under 4.2 are 
available for pickup by the addressee at the destination facility by 6 
p.m. of the scheduled delivery day that the destination office is open 
for retail business.
    [Delete 4.3, Priority Mail Express 2-Day Delivery, in its entirety 
and renumber 4.4 and 4.5 as 4.3 and 4.4.]
* * * * *

4.4 Open and Distribute

    [Revise the text of renumbered 4.4 to read as follows:]
    Priority Mail Express delivery service may be used to expedite 
movement of any other class of mail from one domestic USPS facility to 
another by Priority Mail Express Open and Distribute subject to the 
standards in 705.18.0.
* * * * *

215 Mail Preparation

* * * * *
    [Revise the heading of 2.0 to read as follows:]

2.0 Priority Mail Express Labels

2.1 Mailing Label

    [Revise the introductory text of 2.1 to read as follows:]
    Priority Mail Express items must be labeled as follows:
* * * * *
    [Revise the second sentence of item b to read as follows:]
    b. * * * Mailers authorized to present Priority Mail Express items 
using a Priority Mail Express Manifesting System must follow label 
preparation procedures in Publication 97, Priority Mail Express 
Manifesting Business and Technical Guide.
* * * * *
    [Delete 2.3, ZIP Code Determination, in its entirety.]
* * * * *

216 Enter and Deposit

    [Revise the heading of 1.0 to read as follows:]

1.0 Priority Mail Express Enter and Deposit

    [Revise the introductory text of 1.0 to read as follows:]
    Commercial Priority Mail Express must be entered and deposited as 
follows:
    [Revise items a and b by reversing the order. Revise the first 
sentence of reordered item a to read as follows:]
    a. Items must be entered or deposited by the local Post Office 
designated acceptance time.* * *
* * * * *

500 Additional Mailing Services

503 Extra Services

1.0 Basic Standards for All Extra Services

* * * * *

1.4.1 Eligibility--Domestic Mail

* * * * *

Exhibit 1.4.1 Eligibility--Domestic Mail

EXTRA SERVICE ELIGIBLE MAIL ADDITIONAL COMBINED EXTRA SERVICES
* * * * *
    [Revise the COD entry by deleting the parenthetical under Priority 
Mail Express.]
Collect on Delivery (COD) Priority Mail Express
COD Restricted Delivery
* * * * *

9.0 Collect on Delivery (COD)

9.1 Basic Standards

* * * * *

9.1.5 Priority Mail Express COD

    [Revise the first sentence of 9.1.5 to read as follows:]
    Any article sent COD also may be sent by Priority Mail Express when 
a signature is requested.* * *
* * * * *

600 Basic Standards for All Mailing Services

* * * * *

604 Postage Payment Methods and Refunds

* * * * *

9.0 Exchanges and Refunds

* * * * *

9.5 Priority Mail Express Postage and Fees Refunds

    [Revise the heading of 9.5.1 to read as follows:]

[[Page 14341]]

9.5.1 Priority Mail Express Delivery

    [Revise the text of 9.5.1 to read as follows:]
    For Priority Mail Express 1-day, 2-day, and 3-day delivery, the 
USPS refunds the postage and Sunday or holiday premium fee for an item 
not delivered, for an item for which delivery was not attempted, or if 
the item was not made available for claim by the delivery date and time 
specified at the time of mailing, subject to the standards for this 
service, unless the delay was caused by one of the situations in 9.5.5.
* * * * *

Colleen Hibbert-Kapler,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2025-05514 Filed 3-31-25; 8:45 am]
BILLING CODE P