FR Doc 03-14631
[Federal Register: June 11, 2003 (Volume 68, Number 112)]
[Rules and Regulations]               
[Page 34805-34808]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11jn03-16]                         

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POSTAL SERVICE

39 CFR Part 111

 
Delivery Confirmation and Signature Confirmation Services With 
First-Class Mail Parcels and Package Services Parcels

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: In this final rule, the Postal Service adopts revisions to the 
Domestic Mail Manual (DMM) that clarify when it is permissible to use 
Delivery Confirmation service or Signature Confirmation service with 
mailpieces claimed at First-Class Mail or Package Services rates. In 
particular, this final rule specifies that, for First-Class Mail and 
Package Services mailpieces, Delivery Confirmation service or Signature 
Confirmation service may be used only with parcels and not with letter-
size mail or flat-size mail as defined by the Postal Service.

EFFECTIVE DATE: July 10, 2003.

FOR FURTHER INFORMATION CONTACT: Neil Berger at (703) 292-3645, Mailing 
Standards, United States Postal Service.

SUPPLEMENTARY INFORMATION: In a proposed rule published on April 15, 
2003, in the Federal Register (68 FR 18174-18176), the Postal Service 
put forward for public comment revised language to the DMM that would 
clarify the mailing standards governing the use of Delivery 
Confirmation service or Signature Confirmation service with First-Class 
Mail parcel-shaped mailpieces and Package Services parcel-shaped 
mailpieces. For this clarification, the general term ``box,'' as used 
in part of the original language of those mailing standards to identify 
``parcel-shaped'' mail, is to be replaced with the specific dimensional 
definitions of a parcel currently used in DMM C050 for machinable 
parcels, irregular parcels, and outside parcels.
    The term ``box'' was initially adopted when classification changes 
extended the use of Delivery Confirmation service and Signature 
Confirmation service to First-Class Mail parcels only and confined the 
use of those two special services to Package Services parcels only. 
Those classification changes took effect on June 30, 2002, as announced 
on April 16, 2002, in the Federal Register (67 FR 18684-18771).
    The term ``box'' had been carefully selected for the classification 
changes for two important reasons. First, the term offered a functional 
and convenient description of a parcel that could be easily understood 
by the general mailing public, parcel and merchandise shippers, and 
Postal Service employees at retail units and business mail entry units. 
Second, the term permitted a wide range of First-Class Mail and Package 
Services mailpieces--including pieces measuring \3/4\ inch thick or 
less--to qualify as ``parcel-shaped'' mail if prepared in boxes. This 
second reason was also important because most mailpieces measuring \1/
4\ inch thick or less are generally categorized as letter-size mail 
(``letters''), and most mailpieces measuring between \1/4\ and \3/4\ 
inch thick are generally categorized as flat-size mail (``flats'') 
under DMM C050.
    The original mailing standards underlying the term ``box,'' which 
this final rule now effectively revises, were first presented in 
sections C100.5.0 and C700.1.0h of Issue 57 of the DMM, dated June 30, 
2002. Those original mailing standards permitted the use of either 
special service with a First-Class Mail mailpiece or a Package Services 
mailpiece only if the piece met the following conditions:
    a. Has an address side with enough surface area to fit the delivery 
address, return address, postage, markings and endorsements, and 
special service label; and
    b. Is in a box or, if not in a box, is more than \3/4\ inch thick 
at its thickest point.
    In the case of First-Class Mail parcels and Package Services 
parcels, these standards reflected both a customer need and an 
operational requirement to maintain high rates of successful scanning 
of Delivery Confirmation barcodes and Signature Confirmation barcodes 
by segregating the pieces With these barcodes from letter-size and 
flat-size mailpieces.
    Nevertheless, the use of the term ``box'' to define a parcel has 
continued to create uncertainty among customers and Postal Service 
employees in determining whether specific mailing containers qualify as 
``boxes'' and whether specific mailpieces qualify as ``parcel-shaped'' 
mail. This uncertainty comes into play especially for mailpieces 
prepared in lightly constructed or flimsy containers. These pieces can 
easily flatten or compress during transportation and mail processing 
into flat-size pieces or, on occasion for smaller containers, even into 
letter-size pieces. Flattened or compressed pieces, even if originally 
prepared as parcels, no longer meet the intent or the function of 
parcels. As a consequence, they are not handled in the parcel 
mailstream. Instead, these pieces are generally processed as flats and, 
as a result, invariably fail to receive a Delivery Confirmation or 
Signature Confirmation scan.
    One way to remove the uncertainty about the term ``box'' would be 
to define a parcel as any mailpiece that is neither letter-size nor 
flat-size. This approach at first seems relatively straightforward in 
resolving the uncertainty surrounding the term ``box,'' by providing a 
practical definition that can be reasonably and uniformly applied as a 
mailing requirement. Even with a specification such as ``any mailpiece 
thicker than \3/4\ inch is not letter-size or flat-size,'' customers 
and employees would encounter two new and unforeseen issues:
    [sbull] Merchandise items sent as First-Class Mail or Package 
Services pieces that are thinner than \3/4\ inch thick--such as compact 
discs, coins in flat plastic display cases, and some children's picture 
books--would not be eligible for the use of Delivery Confirmation 
service or Signature Confirmation service because their dimensions of 
length, height, and, most notably, thickness would generally fall 
within the dimensional definition of letter-size or flat-size mail.
    [sbull] Any qualifying mailpiece that passed the thickness 
requirement (that is, the piece measured more than \3/4\ inch thick) 
but was not uniformly thick might also be ineligible for the use of 
either special service if part of the mailpiece could, in some cases, 
fall within the dimensional requirements for either flat-size mail or 
letter-size mail.
    To overcome these two issues and to ensure that customers and 
parcel shippers can benefit from the use of Delivery Confirmation 
service or Signature Confirmation service in such cases, the Postal 
Service is adopting the current three parcel definitions in DMM C050 
for a machinable parcel, an irregular parcel, and an outside parcel for 
the purposes of defining First-Class Mail parcels and Package Services 
parcels eligible for the use of Delivery Confirmation service or 
Signature Confirmation service.
    The Postal Service has also added a clarification to the 
descriptions of Delivery Confirmation service and Signature 
Confirmation service with information that states that some statutes 
and regulations governing the mailing of documents with legal 
significance may require the use of

[[Page 34806]]

Certified Mail or Registered Mail rather than Delivery Confirmation 
service or Signature Confirmation service.

Comments

    The Postal Service received three comments to its proposed rule. 
One commenter was a third-party provider of printing, mailing, and 
related services to the merchandising, magazine, book, directory and 
financial markets. The second commenter was a software developer for 
certain mailing applications and electronic book publishing. The third 
commenter was a box and carton manufacturer.

Signature Confirmation Service With Standard Mail Pieces

    The first commenter, who was the third-party provider, stated that 
his firm mails more than 150 million parcels each year for a large 
client base. This commenter requested the extension of the use of 
Signature Confirmation service to Standard Mail parcels. This commenter 
correctly noted that the use of Signature Confirmation service was 
extended on June 30, 2002, to First-Class Mail parcels but not to 
Standard Mail parcels. This commenter then pointed out that the 
physical characteristics of both First-Class Mail parcels and Standard 
Mail parcels are similar in regard to size, shape, and weight (First-
Class Mail parcels are permitted to weigh up to 13 ounces and Standard 
Mail parcels are permitted to weigh up to but not including 16 ounces.)
    Although using Signature Confirmation service with Standard Mail 
parcels would provide many shippers with a more enhanced level of 
service than Delivery Confirmation service, limited market research has 
not shown a large potential demand for this special service for these 
reasons:
    [sbull] The comparatively high fee for the special service. Except 
for Priority Mail, which has no additional charge for the Delivery 
Confirmation electronic option, the difference between electronic 
option fees for the two services for other eligible classes of mail is 
considerable: $1.30 for Signature Confirmation service compared with 
$0.13 for Delivery Confirmation service. The Signature Confirmation fee 
is also high in relation to typical Standard Mail postage. If the use 
of Signature Confirmation service were extended to Standard Mail 
pieces, the electronic option would probably be the option required.
    [sbull] The generally low extrinsic value of most items shipped by 
Standard Mail. Shippers sending valuable items tend to use classes of 
mail such as Priority Mail or First-Class Mail that can provide 
additional benefits and permit a larger range of special service 
options.
    From a procedural and legal perspective, the Postal Service cannot 
introduce the use of Signature Confirmation service with Standard Mail 
parcels without proceeding through a rate and classification filing 
with the Postal Rate Commission. Such a filing would require the 
collection of costing data and extensive market research that would be 
unreasonable to undertake outside an omnibus rate case. Even though 
this comment is beyond the scope of this final rule, the Postal Service 
appreciates the recommendation and interest in this special service and 
plans to have the organizations responsible for managing the Delivery 
Confirmation and Signature Confirmation programs consider this 
recommendation as future plans are developed.

Maintenance of Shape Specification

    The software developer and the box manufacturer both commented that 
the proposed rule for DMM S918.1.2c and DMM S919.1.2c would provide 
mailers and the box manufacturing industry with the latitude of 
choosing materials and configurations that could produce mailing 
containers and mailpieces that would meet the intent of that standard.
    Both commenters, however, added that a parcel, on average, must 
maintain a certain thickness to distinguish it from a letter-size or 
flat-size piece. These commenters believed that inserting such a clause 
or qualifier into the proposed standards would ensure that customers 
and shippers would adhere to the original intent of the mailing 
standards to limit Delivery Confirmation service and Signature 
Confirmation service to parcel-shaped First-Class Mail and parcel-
shaped Package Services mailpieces. That intent, as correctly cited by 
the commenters, rests on the need to restrict the two special services 
to parcels in order to prevent entry of Delivery Confirmation pieces 
and Signature Confirmation pieces into the letter-size or flat-size 
mail processing streams, and thus ensure scanning of the Delivery 
Confirmation barcodes and the Signature Confirmation barcodes.
    The Postal Service recognizes that, by adopting the current 
definitions of parcels as presented in DMM C050, some machinable 
parcels could range within the measurements defining either letter-size 
or flat-size mail. By creating a new minimum thickness above the 
current \1/4\-inch minimum required for machinable parcels, the Postal 
Service would, however, impose a hardship on mailers already mailing 
small merchandise items as machinable parcels and using Delivery 
Confirmation service or Signature Confirmation service for those 
parcels.
    The Postal Service, therefore, does not plan to revise the current 
dimensional requirements for the parcel mail processing categories, 
which are understood and accepted by the mailing industry and the 
Postal Service. Moreover, any change to those requirements would 
complicate issues in mail acceptance by introducing two different 
thickness minimums for machinable parcels. As a consequence, the Postal 
Service is adding a rigidity requirement to the standards for 
machinable parcels that measure \3/4\ inch thick or less only for the 
purposes of using the two special services in question as a means to 
prevent such pieces from collapsing into letter-size or flat-size mail.

Container Certification

    Both the software developer and the box manufacturer strongly urged 
the Postal Service to develop a national process of certifying eligible 
mailing containers that meet the definition of a parcel for the 
purposes of using Delivery Confirmation service or Signature 
Confirmation service as described in DMM S918 and S919, respectively. 
Both commenters affirmed that a manufacturer can invest considerable 
resources in developing mailing containers that might be later rejected 
by Postal Service employees in some parts of the country. This 
rejection would also affect customers who purchase such containers and 
plan to use one of the two special services with either First-Class 
Mail or Package Services parcels.
    The box and carton manufacturer conducted an informal test to 
determine the durability of certain prototype containers and the 
resultant Delivery Confirmation scan rate for those containers. The 
manufacturer stated that he mailed 100 empty prototype 5/8-inch-thick 
containers, which had been produced with two different paperboard 
thicknesses of clay-coated newsback paperboard. The manufacturer 
reported that half the containers were mailed from a business mail 
entry unit (BMEU) and the other half from a retail window to eight 
cities throughout the United States.
    According to the same commenter, of the 100 mailpieces mailed, 99 
received a delivery scan. In addition, the commenter claimed that 86% 
of the mailpieces maintained their parcel shape throughout mail 
processing and delivery. In addition to submitting a spreadsheet 
detailing the information for each mailing container, the

[[Page 34807]]

commenter also provided three photographs showing the condition of 
delivered parcel-shaped pieces that he ranked as ``best,'' ``average,'' 
and ``worst.''
    Although the establishment of a national certification process for 
mailing containers has merit for box manufacturers in particular and 
for some customers in general, such a certification process would also 
increase the complexity and administrative burden on box manufacturers, 
on customers, and on the Postal Service. Furthermore, limiting the 
available types and sizes of mailing containers to those that have 
successfully passed a certification process could create unnecessary 
problems for certain mailers. Finally, certification of a container 
cannot always be done in the abstract, without regard to the contents 
within the container.
    Establishing a national process for certifying the eligibility of 
specific mailing containers for Delivery Confirmation service and 
Signature Confirmation service would be similar to establishing a 
process for certifying the eligibility of envelopes and other 
containers for all other types of mailing or services. The Postal 
Service does not believe that such a process at this time would yield 
the greatest benefit to the largest number of customers and parcel 
shippers.
    As far as the informal test conducted by the box and carton 
manufacturer, the Postal Service cannot validate such results as a form 
of certification. There are various testing institutions recognized 
throughout the shipping industry such as the International Safe Transit 
Association (ISTA), which supports the industry-wide development of 
effective packaging, methods, and logistic systems that prevent or 
reduce transportation and handling damage of packages.
    The commenter did not explain how he mailed 50 pieces at the 
business mail entry unit, which normally accepts and verifies presorted 
rate mail or permit imprint mail. Permit imprint rate mail requires a 
minimum of 200 pieces or 50 pounds, even for single-piece rate First-
Class Mail prepared with a permit imprint. Moreover, because First-
Class Mail mailpieces may not weigh more than 13 ounces each, a mailer 
would need at this maximum weight per piece at least 62 13-ounce pieces 
in a mailing to qualify for the use of a permit imprint.
    For the reasons presented in the proposed rule and those noted 
above in this final rule, and in consideration of the public comments 
received, the Postal Service adopts the following changes to the 
Domestic Mail Manual, which is incorporated by reference in the Code of 
Federal Regulations. See 39 CFR 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

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, 3626, 5001.


0
2. Amend the following sections of the Domestic Mail Manual (DMM) as 
set forth below:

Domestic Mail Manual (DMM)

* * * * *

C Characteristics and Content

* * * * *

C100 First-Class Mail

* * * * *
    [Delete current 5.0. Redesignate current 6.0 as new 5.0.]
* * * * *

C700 Package Services

    [Revise heading to read as follows:]
1.0 DIMENSIONS
* * * * *
    [Delete 1.0h.]
* * * * *

S Special Services

* * * * *

S900 Special Postal Services

S910 Security and Accountability

* * * * *

S918 Delivery Confirmation

1.0 BASIC INFORMATION

1.1 Description

    [Add the following sentence at the end of 1.1 to read as follows:]
    * * * Some statutes and regulations governing the mailing of 
documents with legal significance may require the use of Certified Mail 
or Registered Mail rather than Delivery Confirmation.

1.2 Eligible Matter

    [Revise 1.2 to read as follows:] Delivery Confirmation is available 
for First-Class Mail parcels defined in C050 as machinable (with no 
minimum weight), irregular, or outside parcels; for all Priority Mail 
pieces; for Standard Mail pieces subject to the residual shape 
surcharge (electronic option only); and for Package Services parcels 
defined in C050 as machinable, irregular, or outside parcels. For the 
purposes of using Delivery Confirmation with a First-Class Mail parcel 
or a Package Services parcel, the parcel must meet these additional 
requirements:
    a. The surface area of the address side of the parcel must be large 
enough to contain completely and legibly the delivery address, return 
address, postage, and any applicable markings, endorsements, and 
special service labels.
    b. Except as provided in 1.2c for machinable parcels, the parcel 
must be greater than \3/4\ inch thick at its thickest point.
    c. If the mailpiece is a machinable parcel under C050 and no 
greater than \3/4\ inch thick, the contents must be prepared in a 
strong and rigid fiberboard or similar container or in a container that 
becomes rigid after the contents are enclosed and the container is 
secured. The parcel must be able to maintain its shape, integrity, and 
rigidity throughout processing and handling without collapsing into a 
letter-size or flat-size piece.

1.3 Ineligible Matter

    [Revise 1.3 to read as follows:]
    Delivery Confirmation is not available for the following:
    a. Express Mail and Periodicals pieces.
    b. First-Class Mail letter-size and flat-size pieces.
    c. Standard Mail pieces not subject to the residual shape surcharge 
and all Enhanced Carrier Route Standard Mail pieces.
    d. Package Services flat-size pieces.
    e. Mail paid with precanceled stamps.
    f. Mail addressed to APO/FPO destinations.
    g. Mail addressed to any U.S. territory, possession, or Freely 
Associated State listed in G011, with the exception of Puerto Rico and 
the U.S. Virgin Islands.
* * * * *

S919 Signature Confirmation

1.0 BASIC INFORMATION

1.1 Description

    [Add the following sentence at end of 1.1 to read as follows:]
    * * * Some statutes and regulations governing the mailing of 
documents with legal significance may require the use of Certified Mail 
or Registered Mail rather than Signature Confirmation.

1.2 Eligible Matter

    [Revise 1.2 to read as follows:]
    Signature Confirmation is available for First-Class Mail parcels 
defined in

[[Page 34808]]

C050 as machinable (with no minimum weight), irregular, or outside 
parcels; for all Priority Mail pieces; and for Package Services parcels 
defined in C050 as machinable, irregular, or outside parcels. For the 
purposes of using Signature Confirmation with a First-Class Mail parcel 
or a Package Services parcel, the parcel must meet these additional 
requirements:
    a. The surface area of the address side of the parcel must be large 
enough to contain completely and legibly the delivery address, return 
address, postage, and any applicable markings, endorsements, and 
special service labels.
    b. Except as provided in 1.2c for machinable parcels, the parcel 
must be greater than \3/4\ inch thick at its thickest point.
    c. If the mailpiece is a machinable parcel under C050 and no 
greater than \3/4\ inch thick, the contents must be prepared in a 
strong and rigid fiberboard or similar container or in a container that 
becomes rigid after the contents are enclosed and the container is 
secured. The parcel must be able to maintain its shape, integrity, and 
rigidity throughout processing and handling without collapsing into a 
letter-size or flat-size piece.

1.3 Ineligible Matter

    [Revise 1.3 to read as follows:]
    Signature Confirmation is not available for the following:
    a. Express Mail, Periodicals, and Standard Mail pieces.
    b. First-Class Mail letter-size and flat-size pieces.
    c. Package Services flat-size pieces.
    d. Mail paid with precanceled stamps.
    e. Mail addressed to APO/FPO destinations.
    f. Mail addressed to any U.S. territory, possession, or Freely 
Associated State listed in G011, with the exception of Puerto Rico and 
the U.S. Virgin Islands.
* * * * *
    An appropriate amendment to 39 CFR part 111 to reflect the changes 
will be published.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 03-14631 Filed 6-10-03; 8:45 am]

BILLING CODE 7710-12-P