**POSTAL SERVICE**

**39 CFR Part 111**

**Postage Payment for Bound Printed Matter Limited to Permit Imprint**

**AGENCY**: Postal Service.

**ACTION**: Final rule.

**SUMMARY**: In this final rule, the Postal Service is revising mailing
standards for all Bound Printed Matter (BPM). In March we filed a notice
with the Postal Regulatory Commission for a classification change
requiring all mailings of Bound Printed Matter be paid by permit only.
The Commission agreed, and we are moving forward with the change.

Postage payment for BPM mailings: carrier route, presorted, and
nonpresorted (single-piece) flats and parcels, regardless of volume, are
limited to permit imprint. Mailers can no longer affix postage by
adhesive stamps, postage meter, or PC Postage. BPM will not be accepted
at retail counters, in collection boxes, or by carriers and must be
deposited and accepted at the Post Office facility that issued the
permit. Merchandise Return Service (MRS) permit holders may continue to
pay nonpresorted BPM prices on eligible items returned with a MRS label.

**EFFECTIVE DATE**: September 11, 2008.

**FOR FURTHER INFORMATION CONTACT**: Carol A. Lunkins at 202-268-7262.

**SUPPLEMENTARY INFORMATION**:

Mailers who are presently authorized to pay postage via permit imprint
may use their existing permit to mail BPM at the Post Office where the
permit is held. Mailers who wish to obtain a new authorization to pay
postage via permit imprint must complete an application and pay a
one-time application fee at each office of mailing to mail BPM on or
after September 11, 2008. Authorization is obtained by submitting PS
Form 3615, *Mailing Permit Application and Customer Profile*, and the
applicable fee to the Post Office where mailings are to be deposited. As
long as a permit remains active, there is no additional fee for use of a
permit imprint indicia, but other fees (e.g., an annual destination
entry mailing fee) may be due depending on where the mail is deposited.

Payment for postage must be made for each mailing through an advance
deposit account before the mailing can be released for processing. Funds
to pay postage must be deposited as directed by the USPS.

Nonpresorted BPM mailings, except discount mailings (e.g., barcode
discounts), will be exempt from the general minimum volume requirement
for a permit imprint mailing of at least 200 pieces or 50 pounds of mail
and will not have a minimum volume requirement. However, the current
requirements for all other commercial nonpresorted and presorted minimum
volumes will remain (e.g., nonpresorted barcoded -- 50 pieces and
presorted -- 300 pieces).

As a reminder, prices for BPM pieces vary by weight and zone of
destination. Supporting documentation of postage is required for all
nonidentical-weight pieces and for identical-weight pieces that are not
separated by price and zone.

This requirement, which limits the payment of postage for all BPM to
permit imprint, is effective September 11, 2008.

The Postal Service adopts the following changes to the DMM, which is
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.

Accordingly, 39 CFR Part 111 is proposed to be amended as follows:

**PART 111 -- \[AMENDED\]**

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.

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

\* \* \* \* \*

**300 Commercial Flats**

\* \* \* \* \*

**360 Bound Printed Matter**

**363 Prices and Eligibility**

**1.0 Prices and Fees for Bound Printed Matter**

**1.1 Nonpresorted Bound Printed Matter**

\* \* \* \* \*

*\[Delete 1.1.7 in its entirety.\]*

**\* \* \* \* \***

*\[Revise the title of 363.1.2, as follows:\]*

**1.2 Commercial Bound Printed Matter**

**\* \* \* \* \***

*\[Delete 1.2.8 in its entirety and renumber current 1.2.9 as new
1.2.8.\]*

**\* \* \* \* \***

**4.0 Price Eligibility for Bound Printed Matter Flats**

**\* \* \* \* \***

**4.2 Nonidentical Weight Pieces**

*\[Revise the text of 4.2 to eliminate affixed postage payment, as
follows:\]*

Mailings may contain nonidentical-weight pieces only if Business Mailer
Support

(BMS) has authorized payment of postage by permit imprint under
[705.2.0,](http://pe.usps.com/text/dmm300/705.htm#wp1179335)

[*Manifest Mailing
System*](http://pe.usps.com/text/dmm300/705.htm#wp1179335), 705.3.0,
*Optional Procedure*, or
[705.4.0,](http://pe.usps.com/text/dmm300/705.htm#wp1179544) *Alternate
Mailing System*.

\* \* \* \* \*

**364 Postage Payment and Documentation**

**1.0 Basic Standards for Postage Payment**

**1.1 Nonpresorted Bound Printed Matter**

**1.1.1 Payment Method**

*\[Revise the text of 1.1.1 to eliminate postage payment methods other
than permit imprint, as follows:\]*

The mailer is responsible for proper postage payment. Subject to the

corresponding standards, postage and fees for Bound Printed Matter must
be paid by permit imprint, as defined in
[604.5.0](http://pe.usps.com/text/dmm300/604.htm#wp1080814). Permit
imprint may be used for mailings that contain nonidentical-weight pieces
only when authorized by Business Mailer Support. Identical-weight pieces
must be separated at acceptance into groups that contain pieces all
subject to the same zone and same combination of prices (e.g., all are
zone 4), unless mailed under
[705.2.0](http://pe.usps.com/text/dmm300/705.htm#wp1179335) through
[705.4.0](http://pe.usps.com/text/dmm300/705.htm#wp1179544) in *Advanced
Preparation and Special Postage Payment Systems.*

*\[Delete current 1.1.2 in its entirety and renumber current 1.1.3 as
new 1.1.2.\]*

**1.1.2 Postage Paid with Permit Imprint**

The following standards apply for postage paid with permit imprint:

\* \* \* \* \*

*\[Revise renumbered 1.1.2b, as follows:\]*

> b\. Minimum Quantity. Nonpresorted, non-discounted mailings are not
> subject to a minimum volume requirement.

*\[Revise the title of 364.1.2, as follows:\]*

**1.2 Commercial Bound Printed Matter**

**1.2.1 Postage Payment Options**

*\[Revise the text of 1.2.1, as follows:\]*

The mailer is responsible for proper postage payment. Subject to the
corresponding standards, postage for Bound Printed Matter may be paid by
permit imprint only (see
[604](http://pe.usps.gov/text/dmm300/604.htm).5.0). Permit imprint may
be used for mailings that contain nonidentical-weight pieces only when
authorized by Business Mailer Support. Identical-weight pieces must be
separated at acceptance into groups that contain pieces all subject to
the same zone and same combination of prices (e.g., all are zone 4),
unless mailed under
[705.2.0](http://pe.usps.gov/text/dmm300/705.htm#wp1179335) through
[705.4.0](http://pe.usps.gov/text/dmm300/705.htm#wp1179544), in
*Advanced Preparation and Special Postage Payment Systems.*

**2.0 Mailing Documentation**

**2.1 Completing Postage Statements**

*\[Revise the text of 2.1, as follows:\]*

All mailings must be accompanied by a completed postage statement signed
by the mailer (in duplicate if the mailer wants a receipted copy). A
change made to any postage statement requires the mailer to correct the
postage statement accordingly and document the correction.

**2.2 Basic Documentation Standards**

*\[Revise the text of 2.2, as follows:\]*

Generally, documentation is required from a mailer when a mailing is
presented to the USPS, and supporting documentation of postage is
required.

Documentation describes the preparation, price levels, content of the
mailing and it details the volume and postage data. By comparison with
the actual mailing, it describes and supports the claims contained on
the postage statement, which accompanies the mailing. It allows the USPS
to validate the accuracy of the mailing. Documentation must be submitted
when specified for the price claimed.

**2.3 Documentation for Mail Claiming the Barcode Discount**

*\[Revise the text of 2.3, as follows:\]*

A complete postage statement must accompany each mailing, and it must be
supported by documentation produced by PAVE-certified or MAC-certified
software or standardized documentation. Mailers may use a single postage
statement and a single documentation report for all price levels in a
mailing. Documentation of postage is not required if each piece is of
identical weight and the pieces are separated by zone and price when
presented for acceptance.

\* \* \* \* \*

**365 Mail Preparation**

\* \* \* \* \*

**5.0 Preparing Presorted Flats**

\* \* \* \* \*

**5.3 Sacking**

\* \* \* \* \*

**5.3.2 Separation by Zone**

*\[Revise the text of 5.3.2 by deleting 5.3.2a in its entirety and
combining 5.3.2b with the paragraph, as follows:\]*

Pieces for each zone must be sacked separately. When presented for
verification, sacks must be separated by zone. *Exception:* Pieces for
different zones may be sacked together, and the sacks do not have to be
separated by zone for verification if the mailing is prepared under
705.2.0, *Manifest Mailing System*, 705.3.0, *Optional Procedure*,
705.4.0, *Alternate Mailing System*, or
[5.3.3,](http://pe.usps.com/text/dmm300/365.htm#wp1022778%23wp1022778)
*Commingling Zones*.

**5.3.3 Commingling Zones**

*\[Revise the introductory paragraph of 5.3.3, as follows:\]*

Subject to this section, when zoned BPM is presented as individual
pieces, the mailing must be separated by zone. Nonidentical-weight
pieces may not be commingled unless authorized by the Business Mailer
Support manager. The mail must be prepared and documented:

\* \* \* \* \*

**6.0 Preparing Carrier Route Flats**

\* \* \* \* \*

**6.3 Sacking**

\* \* \* \* \*

**6.3.2 Separation by Zone**

*\[Revise the text of 6.3.2 by deleting 6.3.2a in its entirety and
combining 6.3.2b with the paragraph, as follows:\]*

Pieces for each zone must be sacked separately. When presented for
verification, sacks must be separated by zone. *Exception:* Pieces for
different zones may be sacked together, and the sacks do not have to be
separated by zone for verification if the mailing is prepared under
705.2.0, *Manifest Mailing System*, 705.3.0, *Optional Procedure*,
705.4.0, *Alternate Mailing System*, or 5.3.3, *Commingling Zones*.

**6.3.3 Commingling Zones**

*\[Revise the introductory paragraph of 6.3.3, as follows:\]*

Subject to this section, when zoned BPM is presented as individual
pieces, the mailing must be separated by zone. Nonidentical-weight
pieces may not be commingled unless authorized by the Business Mailer
Support manager. The mail must be prepared and documented:

\* \* \* \* \*

**366 Enter and Deposit**

1.  **Deposit of Nonpresorted Bound Printed Matter**

*\[Revise the title of 366.1.1, as follows:\]*

**1.1 Nonpresorted Mailings**

*\[Revise the text of 1.1 as follows:\]*

Nonpresorted Bound Printed Matter postage must be paid via permit
imprint and

be deposited and accepted at the Post Office that issued the permit, at
a time and place designated by the postmaster, except as otherwise
provided for plant-

verified drop shipments under
[604.5.0](http://pe.usps.com/text/dmm300/604.htm#wp1080814).

**2.0 Presenting a Mailing**

**2.1 Verification and Entry---Presorted, Carrier Route, Destination
Entry, and**

**Barcoded Mailings**

*\[Revise the first sentence to delete "or license" and delete the last
sentence of 2.1 in its entirety as follows:\]*

All presorted, carrier route, destination entry, and barcoded commercial
mailings must be presented for verification and acceptance at the Post
Office where the permit is held. \*\*\*

**2.2 Verification and Entry---Nonpresorted Mailings**

*\[Revise the text of 2.2, as follows:\]*

Nonpresorted Bound Printed Matter is not accepted at retail counters, in
collection boxes, or by carriers. Mailers must deposit nonpresorted
Bound Printed Matter only at the Post Office where the permit is held at
the time and place specified by the postmaster at the office of mailing
(see [604.5.0](http://pe.usps.com/text/dmm300/604.htm#wp1080814)).

\* \* \* \* \*

**2.5 BMC Acceptance**

A mailer may present Bound Printed Matter at a BMC for acceptance if:

*\[Revise the text of 2.5a, as follows:\]*

a\. Permit imprint postage is paid through an advance deposit account at
the BMC parent Post Office or another Post Office in the BMC service
area, unless otherwise permitted by standard.

\* \* \* \* \*

**400 Commercial Parcels**

\* \* \* \* \*

**460 Bound Printed Matter**

**463 Prices and Eligibility**

**1.0 Prices and Fees for Bound Printed Matter**

\* \* \* \* \*

*\[Delete 1.1.6 in its entirety.\]*

*\[Revise the title of 463.1.2, as follows:\]*

**1.2 Commercial Bound Printed Matter**

\* \* \* \* \*

*\[Delete current 1.2.6 in its entirety and renumber current 1.2.7 as
new 1.2.6.\]*

\* \* \* \* \*

**4.0 Price Eligibility for Bound Printed Matter Parcels**

\* \* \* \* \*

**4.2 Nonidentical Weight Pieces**

*\[Revise the text of 4.2. to eliminate affixed postage payment, as
follows:\]*

Mailings may contain nonidentical-weight pieces only if Business Mailer
Support

(BMS) has authorized payment of postage by permit imprint under 705.2.0,

*Manifest Mailing System*, 705.3.0, *Optional Procedure*, or 705.4.0,
*Alternate Mailing System*.

\* \* \* \* \*

**464 Postage Payment and Documentation**

**1.0 Basic Standards for Postage Payment**

**1.1 Nonpresorted Bound Printed Matter**

**1.1.1 Payment Method**

*\[Revise the text of 1.1.1 to eliminate postage payment methods other
than permit imprint, as follows:\]*

The mailer is responsible for proper postage payment. Subject to the
corresponding standards, postage and fees for Bound Printed Matter must
be paid by permit imprint, as defined in 604.5.0. Identical and
nonidentical-weight permit imprint mailings may be mailed under 705,
*Advanced Preparation and Special Postage Payment Systems.* Permit
imprint may be used for mailings that contain nonidentical-weight pieces
only when authorized by Business Mailer Support. Identical-weight pieces
must be separated at acceptance into groups that contain pieces all
subject to the same zone and same combination of prices (e.g., all are
zone 4), unless mailed under 705.2.0 through 705.4.0, in Advanced
Preparation and Special Postage Payment Systems.

*\[Delete current 1.1.2 in its entirety and renumber current 1.1.3 as
new 1.1.2.\]*

**1.1.2 Postage Paid with Permit Imprint**

The following standards apply for postage paid with permit imprint:

\* \* \* \* \*

*\[Revise renumbered 1.1.2.b, as follows:\]*

b\. Minimum Quantity. Nonpresorted, non-discounted mailings are not
subject to a minimum volume requirement.

**1.2 Commercial Bound Printed Matter**

**1.2.1 Postage Payment Options**

*\[Revise the text of 1.2.1, as follows:\]*

The mailer is responsible for proper postage payment. Subject to the
corresponding standards, postage for Bound Printed Matter must be paid
by permit imprint only (see 604.5.0). Permit imprint may be used for
mailings that contain nonidentical-weight pieces only when authorized by
Business Mailer Support. Identical-weight pieces must be separated at
acceptance into groups that contain pieces all subject to the same zone
and same combination of prices (e.g., all are zone 4, with a BMC entry
discount and a barcoded discount), unless mailed under 705.2.0 through
705.4.0.

**2.0 Mailing Documentation**

**2.1 Completing Postage Statements**

*\[Revise the text of 2.1, as follows:\]*

All mailings must be accompanied by a completed postage statement signed
by the mailer (in duplicate if the mailer wants a receipted copy). A
change made to any postage statement requires the mailer to correct the
postage statement accordingly and document the correction.

**2.2 Basic Documentation Standards**

*\[Revise the text of 2.2, as follows:\]*

Documentation is required from a mailer when a mailing is presented to
the USPS, and supporting documentation of postage is also required.
Documentation describes the preparation, price levels, content of the
mailing, and it details the volume and postage data. By comparison with
the actual mailing, it describes and supports the claims contained on
the postage statement that accompanies the mailing. It allows the USPS
to validate the accuracy of the mailing. When specified, documentation
must be submitted for the price claimed.

\* \* \* \* \*

**465 Mail Preparation**

\* \* \* \* \*

**5.0 Preparing Presorted Parcels**

**5.1 Basic Standards**

\* \* \* \* \*

**5.1.2 Separation**

*\[Revise the text of 5.1.2 by deleting 5.1.2a in its entirety and
combining 5.1.2b with the paragraph, as follows:\]*

Pieces for each zone must be sacked separately. When presented for
verification, sacks must be separated by zone. *Exception:* Pieces for
different zones may be sacked together, and the sacks do not have to be
separated by zone for verification if the mailing is prepared under
[705.2.0,](http://pe.usps.com/text/dmm300/705.htm#wp1179335) *Manifest
Mailing System*, 705.3.0, *Optional Procedure*,
[705.4.0,](http://pe.usps.com/text/dmm300/705.htm#wp1179544) *Alternate
Mailing System*, or
[5.1.3,](http://pe.usps.com/text/dmm300/365.htm#wp1022778%23wp1022778)
*Commingling Zones*.

**5.1.3 Commingling Zones**

*\[Revise the introductory paragraph of 5.1.3, as follows:\]*

Subject to this section, when zoned BPM is presented as individual
pieces, the mailing must be separated by zone. Nonidentical-weight
pieces may not be commingled unless authorized by the BMS manager. The
mail must be prepared and documented:

\* \* \* \* \*

**6.0 Preparing Carrier Route Parcels**

**6.1 Basic Standards**

\* \* \* \* \*

**6.1.2 Separation**

*\[Revise the text of 6.1.2 by deleting 6.1.2a in its entirety and
combining 6.1.2b with the paragraph, as follows:\]*

Pieces for each zone must be sacked separately. When presented for
verification, sacks must be separated by zone. *Exception:* Pieces for
different zones may be sacked together, and the sacks do not have to be
separated by zone for verification if the mailing is prepared under
705.2.0, *Manifest Mailing System*, 705.3.0, *Optional Procedure*,
705.4.0, *Alternate Mailing System*, or 6.1.3, *Commingling Zones*.

**6.1.3 Commingling Zones**

*\[Revise the introductory paragraph of 6.1.3, as follows:\]*

Subject to this section, when zoned BPM is presented as individual
pieces, the mailing must be separated by zone. Nonidentical-weight
pieces may not be commingled unless authorized by the BMS manager. The
mail must be prepared and documented:

\* \* \* \* \*

**466 Enter and Deposit**

1.  **Deposit of Nonpresorted Bound Printed Matter**

*\[Revise the title of 466.1.1, as follows:\]*

**1.1 Nonpresorted Mailings**

*\[Revise the text of 1.1 as follows:\]*

Nonpresorted Bound Printed Matter postage must be paid via permit
imprint and

be deposited and accepted at the Post Office that issued the permit, at
a time and place designated by the postmaster, except as otherwise
provided for plant-

verified drop shipments under 604.5.0.

**2.0 Presenting a Mailing**

**2.1 Verification and Entry---Presorted, Carrier Route, Destination
Entry, and**

**Barcoded Mailings**

*\[Revise the text of 2.1 as follows:\]*

All presorted, carrier route, destination entry, and barcoded commercial
mailings must be presented for verification and acceptance at the Post
Office where the permit is held. All such mailings must be deposited at
locations and times specified by the postmaster or designee at the
office that verifies and accepts the mailing. Plant-verified drop
shipment (PVDS) mailings must be presented for verification, acceptance,
and entry under 705.15.0. Plant-loaded mailings must be presented as
specified by the applicable standards and the plant-load agreement.

**2.2 Verification and Entry---Nonpresorted Mailings**

*\[Revise the text of 2.2, as follows:\]*

Nonpresorted Bound Printed Matter is not accepted at retail counters, in
collection boxes, or by carriers. Mailers must deposit nonpresorted
Bound Printed Matter only at the Post Office where the permit is held at
the time and place specified by the postmaster at the office of mailing
(see 604.5.0).

\* \* \* \* \*

**2.5 BMC Acceptance**

A mailer may present Bound Printed Matter at a BMC for acceptance if:

*\[Revise the text of 2.5a, as follows:\]*

a\. Permit imprint postage is paid through an advance deposit account at
the BMC parent Post Office or another Post Office in the BMC service
area, unless otherwise permitted by standard.

\* \* \* \* \*

**3.0 Destination Entry**

\* \* \* \* \*

**3.3 Postage Payment**

Postage payment for Bound Printed Matter destination price mailings is
subject to the same standards that apply generally to Bound Printed
Matter and to the following:

*\[Revise the text of 3.3a, as follows:\]*

a.  Mailers must pay postage and correct mailing fees at each Post
    Office where they are authorized to present mailings for
    verification unless using the Electronic Verification System (eVS)
    under 705.2.9. Except for plant-verified drop shipments (see
    705.15.0) and eVS shipments (see 705.2.9); mailers must have a
    permit imprint authorization at the parent Post Office for mailings
    deposited for entry at a DBMC, ASF, DSCF, or DDU. Correct mailing
    fees must be paid for the current 12-month period at the USPS
    facility where postage is paid for the mailing.

\* \* \* \* \*

**600 Basic Standards for All Mailing Services**

\* \* \* \* \*

**604 Postage Payment Methods**

\* \* \* \* \*

**4.0 Postage Meters and PC Postage Products ("Postage Evidencing
Systems")**

**4.1 Basic Information**

\* \* \* \* \*

**4.1.5 Authorized Classes of Mail**

*\[Revise the text of 4.1.5 to add "Bound Printed Matter", as
follows:\]*

Mailers may use postage evidencing systems to affix or imprint indicia
on any class of mail except Periodicals and Bound Printed Matter.

\* \* \* \* \*

**5.0 Permit Imprint (Indicia)**

**5.1 General Standards**

\* \* \* \* \*

**5.1.2 Minimum Volume**

*\[Revise the text of the introductory paragraph, and add new 5.1.2e, as
follows:\]*

Permit imprint mailings must contain at least 200 pieces or 50 pounds of
mail, except:

\* \* \* \* \*

e\. Bound Printed Matter nonpresorted, non-discounted mailings.

\* \* \* \* \*

**Neva R. Watson**,

*Attorney, Legislative.*

\[END DOCUMENT\]