FR Doc 07-1500
[Federal Register: March 30, 2007 (Volume 72, Number 61)]
[Rules and Regulations]               
[Page 15365-15442]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30mr07-11]                         

[[Page 15365]]

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Part IV

Postal Service

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39 CFR Part 111

New Standards for Domestic Mailing Services; Final Rule

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POSTAL SERVICE

39 CFR Part 111

 
New Standards for Domestic Mailing Services

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: In this final rule the Postal Service provides new mailing 
standards to support most of the pricing change recommended by the 
Postal Regulatory Commission and approved by the Governors of the 
United States Postal Service. We will implement most of the new prices 
on May 14, 2007. We will implement new prices and mailing standards for 
Periodicals mail on July 15, 2007.
    Our pricing change includes a new ``forever stamp'' to make future 
price changes more convenient for consumers. The forever stamp will 
always equal the First-Class Mail single piece 1-ounce letter price. We 
also offer new shape-based prices for First-Class Mail, with lower 
rates for letter-size pieces over 1 ounce. We make the Priority Mail 
flat-rate boxes a permanent product offering, and we add a new 1-pound 
price for Express Mail.
    For commercial mailers we offer new sorting options to reduce the 
number of trays in a mailing of letter-size pieces. We also offer new 
scheme preparations to give mailers access to lower rates and to better 
align flat-size mail preparation with mail processing. We add a new 
automated Address Change Service option to reduce the costs associated 
with undeliverable-as-addressed mail. First-Class Mail parcel mailers 
have new barcode options, and we provide new opportunities for mailers 
to combine Standard Mail Not Flat-Machinable pieces, Standard Mail 
parcels, and Package Services parcels in the same mailing.

EFFECTIVE DATE: 12:01 a.m. on May 14, 2007.

FOR FURTHER INFORMATION CONTACT: Joel Walker, 202-268-7261.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2006-1 included mail classification changes, new pricing structures, 
and price changes for most domestic mailing services. This final rule 
provides the revisions to Mailing Standards of the United States Postal 
Service, Domestic Mail Manual (DMM) that we will adopt to implement 
most of the R2006-1 pricing changes. We summarize major changes since 
our February proposal by class of mail and extra service, update our 
summary of the entire proposal, and update our mailing standards. We 
provide all of the new prices in the ``Rates and Fees Reference'' at 
the end of this notice.
    You can find this final rule, as well as our earlier proposals, at 
http://www.usps.com/ratecase. We also provide helpful information for 

mailers, including frequently asked questions, press releases, and 
Mailers Companion and MailPro articles related to the pricing change.

Background

    The Postal Service Board of Governors set May 14, 2007, as the 
implementation date for the new prices and related changes for all 
classes of mail and extra services, with the exception of Periodicals 
mail, which we will implement on July 15, 2007. The Board chose these 
dates on the basis of our financial obligations, in light of 
operational and administrative considerations, while also considering 
the impact of the changes on mailers and consumers. We note that while 
we are implementing all of the Commission's recommended rates, the 
Governors are asking the Commission to reconsider three issues: the 
prices for Standard Mail flats, the application of the Nonmachinable 
Surcharge for First-Class Mail letters, and the price for the Priority 
Mail flat-rate box. The Governors are concerned about the short-term 
effect that some prices for Standard Mail Regular flats might have on 
catalog mailers, and that the Commission failed to provide appropriate 
cost-based incentives in these other two rate designs. The Governors 
are asking the Commission to reconsider their recommendations and 
respond as quickly as possible.
    We are delaying implementation of our new prices for all 
Periodicals mail to provide adequate time to adjust Postal Service 
systems, to enable an effective and orderly transition in postal 
operations, and to give postal acceptance employees and mailers more 
time to prepare for the complex structure recommended by the Postal 
Regulatory Commission. The Commission recommended Outside-County piece, 
bundle, and container rates that vary based on machinability, presort 
level, and entry. We will publish a Federal Register proposal 
explaining the changes and asking for your comments. We encourage all 
Periodicals mailers to review the Commission's recommendation, which 
includes significant changes to the container rate structure, at http://www.prc.gov
 (under ``Opinions and Decisions''). As we explained in our 

previous Federal Register proposals, Periodicals mailers will have new 
incentives to use efficient containers, and the revised copalletization 
standards further encourage more publishers to combine mailings. We 
also added, and the Commission recommended, new prices for the 
nonadvertising portion of a mailing to give mailers of high-editorial-
content publications access to lower, destination entry rates.
    Overall our new prices reflect changes in operations and the 
marketplace and will enhance efficiency, offer more choices, and ensure 
that all types of mail cover their costs. We include incentives to 
create mailpieces compatible with our processing systems and to deposit 
flats and parcels closer to where they are delivered.
    Our prices recognize that each shape of mailpiece--letter, flat, 
and parcel--has substantially different processing costs that need to 
be covered. Our prices make clear distinctions between shapes and 
recognize that shape affects processing and delivery efficiency. For 
example, in First-Class Mail, a 2-ounce letter will cost $0.58; a 2-
ounce flat, $0.97; and a 2-ounce parcel, $1.30. These prices reflect 
the differences in costs associated with processing and delivering each 
type of mailpiece, as well as the higher value of larger pieces.
    Our new price incentives provide opportunities to mitigate the 
impact of price increases. For the 2-ounce example above, if the 
contents of a First-Class Mail flat are folded and placed into a 
letter-size envelope, the mailer would save 39 cents. If a parcel is 
reconfigured as a flat, the mailer would save 33 cents.
    To make future price changes more convenient, customers may 
purchase ``forever stamps.'' The forever stamp will always equal the 
First-Class Mail single piece 1-ounce letter price, without the 
addition of extra postage. While the forever stamp is intended to be 
used for single-piece 1-ounce First-Class Mail letters, we will allow 
the use of forever stamps on other single-piece-rate items.
    Our prices for Standard Mail letters are consistent with our past 
pricing strategies. For example, this strategy sets the Enhanced 
Carrier Route (ECR) basic letter rate higher than the regular 5-digit 
automation letter rates and encourages automation-compatible letter 
mail eligible for the ECR basic letter rate to migrate to the 
automation letter rate.
    To better align mail preparation with our processing capabilities 
and to maximize access to lower rates for mailers, we are implementing 
scheme preparation in many of our mail preparation standards. We have 
made changes to our flat-size mailing standards to ensure that the 
prices for

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flats and parcels better cover their costs and that pieces eligible for 
flat-size prices can be processed on our automated flat sorting 
machines (AFSM 100s) and handled efficiently at delivery.
    The standards for automation flats are now more closely aligned 
with the processing capabilities of the AFSM 100, the preferred machine 
for flats processing and the workhorse for flats distribution in 
processing plants. The processing capabilities of the AFSM 100 are 
vastly superior to those of the Upgraded Flats Sorting Machine (UFSM 
1000). The throughput of the AFSM 100 (17,000 pieces per hour) is much 
higher than the throughput of the UFSM 1000 (a mere 5,000 pieces per 
hour). There are no plans to purchase new UFSM 1000s, and we are 
removing them from many plants. We also believe that our new standards 
for Standard Mail will be appropriate for pieces weighing up to 16 
ounces when processed and delivered in the future flats sequencing 
environment.
    To be consistent with the processing capabilities of the AFSM 100, 
the length of a flat will continue to be the longest dimension, but for 
bound or folded pieces claimed at automation rates, the edge 
perpendicular to the bound or folded edge may not exceed 12 inches. We 
also revised the deflection test for automation-rate flats with bound 
or folded edges to allow them to be tested by placing the bound or 
final folded edge perpendicular to the edge of the flat surface. This 
method better accommodates pieces with bound edges as the shorter 
dimension.
    We set a 5-inch by 6-inch minimum for automation flats because 
smaller pieces cannot be efficiently processed and present handling 
problems at delivery. However, these pieces may qualify for letter 
rates or nonautomation flats rates, depending on mailpiece 
characteristics.
    Our standards further stipulate that rigid pieces do not qualify 
for flat prices. Rigid pieces are not easily processed on our AFSM 100 
flat-sorting equipment--often resulting in manual processing or 
processing on less-efficient flats equipment--and are not generally 
handled as flats by carriers at delivery. In addition, rigid pieces 
cannot be processed and delivered efficiently in the future flats 
sequencing environment. Our new flexibility test is a simple, 
effective, and efficient way to test the flexibility of pieces 
presented at our thousands of acceptance locations, to determine 
whether such pieces can be processed on our AFSM 100s and handled as 
flats by carriers. To alleviate concerns about postal employees 
administering the test inconsistently, we will allow customers to 
perform this test on their own pieces, with a postal employee observing 
and validating the test. Understanding that the characteristics of 
mailpieces evolve over time, we will test pieces that fall outside of 
the flexibility standards as necessary and continually re-evaluate our 
standards to accommodate new processing and delivery capabilities.
    The flexibility test specifies that pieces must not be in boxes 
because boxes and boxlike pieces do not process well on our AFSM 100 
and are not handled efficiently during delivery. We clarified the 
flexibility test by stating that pieces must be tested first with the 
longest side parallel to the edge of the surface. If the piece can pass 
this test and does not contain a rigid insert, further testing is 
unnecessary. We are confident that our acceptance employees can 
recognize pieces that could present a flexibility problem and will 
properly administer the test but, as we noted above, we also will allow 
customers to test their own pieces while we observe. We will provide 
illustrations for the flexibility test as well as the test for 
deflection in the DMM and other publications.
    We will apply the uniform thickness standard to all flat-size mail 
but will allow a \1/4\-inch variation in thickness. Our standards for 
determining uniform thickness exclude the outer edges of the mailpiece 
as follows:
    ``Flat-size mailpieces must be uniformly thick so that any bumps, 
protrusions, or other irregularities do not cause more than \1/4\-inch 
variance in thickness. Exclude the outside edges of a mailpiece (1 inch 
from the edge) when determining variance in thickness. Mailers must 
secure nonpaper contents to prevent shifting of more than 2 inches 
within the mailpiece.''
    The exclusion of pieces over \3/4\ inch thick from automation flats 
is consistent with processing capabilities on our AFSM 100s and our 
automatic inductions systems. Many pieces that are thicker than \3/4\ 
inch and currently qualify for Standard Mail automation flats rates are 
boxes or rigid pieces. Few Standard Mail pieces that are flexible 
printed material are both over \3/4\ inch and under 16 ounces, which is 
the maximum weight for Standard Mail.
    We do not require nonautomation flats to meet all automation 
standards. Pieces that meet the general size and physical 
characteristics for all flats in proposed DMM 301.1.0 but are too 
flimsy, are not barcoded, or use polywrap that is not approved are 
eligible for nonautomation flats rates. Small pieces (for example, 
pieces 4 inches high by 4 inches long) that are over \1/4\ inch thick 
also are eligible for nonautomation flats rates.\1\
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    \1\ The distinctions between ``nonautomation'' and 
``nonmachinable,'' as they relate to Not Flat-Machinable (NFM) 
pieces, as well as the operations related to NFMs, were discussed on 
the record in Docket No. R2006-1 (in the reply brief of the United 
States Postal Service, Docket No. R2006-1, at 202).
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    NFM pieces are rigid, parcel-like pieces and large pieces (more 
than 15 inches long or more than \3/4\ inch thick) that currently 
qualify for Standard Mail automation flats rates based solely on the 
UFSM 1000 criteria. However, these pieces are rarely processed on the 
UFSM 1000 or other flats sorting equipment, and are seldom delivered as 
flats--they are usually processed either manually or in the parcel 
mailstream. Therefore, the current prices of these pieces are not 
adequate to cover their processing and delivery costs.\2\ The NFM 
subcategory gives mailers the option to mail qualifying pieces at the 
lower, NFM rates, rather than at the higher, parcel rates. The 
standards allow mailers to choose on the basis of rates, preparation, 
and postage payment how to mail qualifying pieces under the categories 
of Standard Mail.
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    \2\ The cost and operational justifications supporting the NFM 
subcategory were discussed on the record in Docket No. R2006-1 (in 
the initial brief of the United States Postal Service, Docket No. 
R2006-1, at 279, on December 21, 2006; and in the reply brief of the 
United States Postal Service, Docket No. R2006-1, at 199-201, on 
January 4, 2007).
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    Our preparation and labeling standards for NFMs will direct them to 
the processing facilities that can efficiently handle them, based on 
actual operations and mailflows. The preparation and destination 
options for NFMs weighing 6 ounces or more mirror those of Standard 
Mail machinable parcels, because they are both efficiently processed at 
bulk mail centers (BMCs). The preparation and destination options for 
NFMs under 6 ounces mirror those of Standard Mail irregular parcels, 
which are efficiently processed at area distribution centers (ADCs).\3\
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    \3\ The Postal Regulatory Commission clarified the rate schedule 
to ensure that pieces sorted to the BMC will pay the same rates as 
pieces sorted to the ADC (in PRC Op. R2006-1, at 259, n. 183, on 
February 26, 2007).
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    The NFM subcategory of Standard Mail was developed according to 
statutory standards and procedures. The NFM category and prices were 
recommended by the Postal Regulatory Commission and approved by the 
Board of Governors. The standards are consistent with the Postal 
Service's authority, under statute and the Domestic Mail Classification 
Schedule, to align classifications and rates with mail processing and 
delivery operations.

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Mailers may still design and package their mailpieces as they do today 
and pay NFM or parcel rates. We will continue to accept these pieces 
for processing and delivery.
    We have given mailers time to adjust their mailpiece design, 
software programming, or production processes to avoid NFM or parcel 
prices if they choose to make a change. From our September 2006 
proposal, we have consistently encouraged mailers to redesign their 
packaging to avoid rigid or box-like mailpieces, and we have consulted 
with many mailers who intended to design pieces that could be mailable 
at flats prices. We realize that not every piece can be redesigned as 
an automation flat, but many mailers do have repackaging options and 
have modified their mailpieces to meet the standards for automation 
flats. We further note that we have openly and often communicated our 
intention to move parcel-like pieces out of the automation flats 
category in this pricing change, as well as in earlier rate testimony, 
because we handle these pieces as parcels in processing and delivery 
and incur the costs associated with parcels.\4\
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    \4\ The ongoing dialogue between the Postal Service and mailers 
regarding this issue was discussed on the record in Docket No. 
R2006-1 (in the rebuttal testimony of Marc D. McCrery (USPS-RT-14), 
Docket No. R2006-1, at 8-11, on November 20, 2006).
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    We also have been working closely with presort software vendors to 
ensure presort software will be available for the May 14, 2007, 
implementation. To ensure our employees and our customers are prepared, 
we initiated training and communication programs nationwide. We will 
separately provide training for customers across the country at local 
postal and mailer facilities and at local Postal Customer Council 
events. We will publish updated manuals and other mailing tools for 
customers on our Postal Explorer Web site at pe.usps.com.
    We published our policy for plant-verified drop shipment (PVDS) 
mail in the DMM Advisory on February 1. The procedures are the same as 
those we used in the past. PVDS mailings verified and paid for before 
the implementation date, using the current rates, will be accepted at 
destination entry postal facilities up to 15 days after May 14, when 
presented with appropriate verification and payment documentation. PVDS 
mailings may be verified and paid for beginning 30 days prior to May 
14, using the new rates, provided the shipments are not deposited at 
destination entry postal facilities until May 14, or later, when 
presented with appropriate verification and payment documentation. We 
will follow our established procedures for other mailing exceptions, as 
we have in past rate cases.
    In response to mailers' requests, we will publish decision trees, 
diagrams, and other supporting material to clarify physical standards 
and other mailing criteria. We agree that illustrations and diagrams 
add clarity to written standards, and we are developing supporting 
material for use in the DMM Advisory, the Quick Service Guides, and the 
DMM. We are also updating the business postage rate calculator on 
Postal Explorer (pe.usps.com) with new graphics and navigation features 
to make it even easier to use.

Changes Since the February Proposal

First-Class Mail Changes

    The rate for machinable First-Class Mail letters that weigh 1 ounce 
or less is $0.41 and the card rate is $0.26. The cost for each 
additional ounce decreases to $0.17 for First-Class Mail single-piece 
and presorted letters, flats, and parcels. The additional-ounce rate 
for automation First-Class Mail letters is $0.125 and the additional-
ounce rate for automation First-Class Mail flats is $0.17.
    Letter-size First-Class Mail pieces weighing 1 ounce or less that 
have any of the nonmachinable characteristics in DMM 201.2.1 are 
subject to a $0.17 nonmachinable surcharge. Nonmachinable letters over 
1 ounce are charged the First-Class Mail letter rates based on weight. 
We retained the 3.3-ounce (0.2063-pound) maximum weight for Presorted 
First-Class Mail machinable letters to be consistent with Standard 
Mail. Pieces over 3.3 ounces must be prepared as nonmachinable letters.

Standard Mail Changes

    We revised DMM 243.5.4 to clarify that there is no 3-digit scheme 
sort for origin/entry 3-digit trays for Standard Mail machinable 
letters. To be consistent with the Postal Regulatory Commissions' 
recommended decision, we revised DMM 246.5.2 to clarify that letter-
size mailpieces, regardless of the rate paid, are not eligible for a 
destination delivery unit rate. We also clarify that rigid letter-size 
pieces up to 3.3 ounces may be mailed at the nonmachinable letter 
rates.
    The Postal Regulatory Commission also recommended we set enhanced 
carrier route (ECR) basic letter rates lower than ECR basic flats rates 
and require all ECR letters not meeting automation requirements to be 
charged the ECR flats rates. Therefore, we revised DMM 243.6.1.2 and 
243.6.3 to require ECRLOT letters paid for at the ECR basic letter rate 
to meet address matching and coding standards and to be delivery-point 
barcoded and automation-compatible. We also revised DMM 243.6.1.3 to 
allow letters paid for at ECR basic letter rates to weigh up to 3.5 
ounces, consistent with our standards for pieces paid for at high-
density and saturation letter rates.
    For flat-size mail, we revised DMM 301.1.5, Uniform Thickness, to 
clarify that nonpaper contents smaller than the mailing container must 
not shift more than 2 inches. We did not intend the standard to apply 
to inserts such as paper envelopes and other thin paper inserts.
    Several mailers asked us to lower the minimum weight for certain 
types of machinable parcels, and we planned to revise these standards 
in a separate rulemaking. However, due to the substantially lower rates 
recommended by the PRC for machinable parcels at the 5-digit level, we 
decided to revise the standards as part of this final rule. Our new 
standards allow certain size pieces weighing at least 3.5 ounces to be 
mailed as machinable parcels. Based on extensive testing of these types 
of pieces and several years of processing and handling them, we are 
confident that we can process and deliver them as efficiently as we do 
similar parcels 6 ounces and over. This change allows mailers to 
prepare a wider range of machinable parcels separately or together with 
other machinable parcels.

Periodicals Changes

    We clarified the definition of ``length'' and ``height'' for 
automation flats by consolidating the definitions for all flat-size 
mail into revised DMM 301.1.2. We clarified the alternative criteria 
for Periodicals automation flats in 707.25.3 to specify that the 
flexibility and deflection tests in 301.1.4 and 301.3.2.4 do not apply 
to these pieces, and that the standards for uniform thickness and 
exterior format in 301.3.6 do apply.
    As we stated above, we will delay implementation of the new prices 
for Periodicals mail. We will publish a Federal Register proposal 
explaining the standards, and we will invite your comments on all 
aspects of the Periodicals proposal.

Priority Mail Changes

    The USPS-produced flat-rate envelope is charged the 1-pound price, 
$9.15 under the Commission's recommended decision, regardless of weight 
or destination. The Postal Service originally proposed a lower rate, 
and the

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Board of Governors is asking the Commission to reconsider the $9.15 
price.

Other Changes

    As a result of the recommended decision, we will not make changes 
to the pricing structure for Confirm. We will continue to offer Silver 
and Gold subscriptions as well as Platinum subscriptions with unlimited 
scans. New fees apply to new subscriptions or for renewal of existing 
subscriptions after May 14, 2007.
    We revised DMM 609 with additional information about the indemnity 
claims process.

Summary by Class of Mail

Summary of First-Class Mail

    Our new prices are based on the shape of mail and differences in 
the relative costs, with separate prices for letters, flats, and 
parcels. As shape becomes a more important price element, weight 
becomes less important, and we reduce prices for letter-size pieces 
over 1 ounce and flat-size pieces over 7 ounces.
    The single-piece 1-ounce First-Class Mail letter price increases 
$0.02, to $0.41, and the single-piece card price also increases $0.02, 
to $0.26. The additional-ounce price decreases $0.07 to $0.17.
    Our new forever stamp makes future price changes more convenient 
for consumers. The postage value of the forever stamp equals the First-
Class Mail single-piece 1-ounce letter rate at any time in the future, 
without the addition of extra postage. Initially we will sell the 
forever stamp at the new 41-cent rate.
    The nonmachinable surcharge increases to $0.17 and applies to 1-
ounce letter-size mailpieces with any of the nonmachinable 
characteristics. Nonmachinable letters over 1 ounce are charged the 
letter rates, based on weight. The maximum weight for letters is 3.5 
ounces.
    The additional-ounce price for automation letters decreases from 
$0.237 to $0.125. We maintain the 150-piece minimum for automation 
First-Class Mail letters and cards. Sort levels are 5-digit/scheme, 3-
digit/scheme, 3-digit origin, AADC, and mixed AADC. We offer simplified 
letter mail preparation for machinable letters, requiring mailers to 
sort only to the origin 3-digit, AADC, and mixed AADC levels. We 
eliminate the automation carrier route preparation and rates.
    To help reduce the number of ``air trays'' (partially filled trays) 
and the overall costs of handling mail in letter trays, we offer a 
reduced--overflow tray option for automation letters. In addition, to 
encourage more full trays, we change our definition of a ``full letter 
tray'' to one in which the pieces fill the length of the tray between 
85 percent and 100 percent.
    To ensure automated processing of flat-size mail, we require all 
flats to be rectangular. The physical standards for automation flats 
are the criteria for AFSM 100 pieces, with new standards for 
flexibility. We also lessen and simplify the deflection standard.
    The structure for presorted parcels includes new workshare prices. 
The rate levels are 5-digit, 3-digit, ADC, and single piece. To 
simplify the preparation of First-Class Mail parcels, we make the 
preparation of 5-digit/scheme sacks optional. We require at least 10 
pounds of parcels for 5-digit/scheme sacks, 3-digit sacks, and ADC 
sacks. Remaining pieces sorted to mixed ADC sacks are charged the 
single-piece First-Class Mail parcel prices.
    Barcodes facilitate processing on the Automated Package Processing 
System (APPS), and we give mailers the option of applying either a 5-
digit UCC/EAN Code 128 or a POSTNET barcode on presorted parcels. 
Unless prepared in 5-digit/scheme containers or paid for at the single-
piece rates, a $0.05 surcharge applies to all parcels that are not 
barcoded, or that weigh less than 2 ounces, and to irregularly shaped 
parcels such as triangles, tubes, rolls, and similar pieces.

Summary of Standard Mail

    Our prices encourage mail that is compatible with our operations 
and drop shipped closer to its destination. As in First-Class Mail, 
Standard Mail pricing has greater recognition of shape and reduced 
reliance on weight.
Letters
    Automation letter sort levels are 5-digit/scheme, 3-digit/scheme, 
AADC, and mixed AADC. Mailers also have the option to prepare 3-digit/
scheme origin/entry trays for automation letters. We offer a simplified 
preparation and require mailers of machinable letters to sort only to 
the AADC and mixed AADC levels, with optional sorting to 3-digit 
origin/entry trays.
    ECR letters up to 3 ounces that are barcoded and automation-
compatible are sorted in full trays according to new preparation 
standards. Mailers sort and bundle ECR letters that are not barcoded or 
not automation-compatible, or that are over 3 ounces, according to 
current preparation standards. Mailers sort and bundle mailings that 
contain pieces both over and under 3 ounces according to current 
preparation standards.
    We replace the nonmachinable surcharge with a separate rate 
structure for nonmachinable letters up to 3.3 ounces. Nonmachinable 
letter sort levels are 5-digit, 3-digit, ADC, and mixed ADC, for which 
there are separate rates. Mailers have the option to prepare 3-digit 
origin/entry trays. Nonmachinable letters over 3.3 ounces are charged 
the Not Flat-Machinable (NFM) rates or, if barcoded and meeting other 
requirements, an automation flat-size rate.
    Destination delivery unit (DDU) entry rates are not available for 
ECR letter-size pieces, and mailers cannot pay ECR flat-size rates and 
claim the DDU discount for automation-compatible letters drop shipped 
to DDUs. Destination sectional center facility (DSCF) entry rates are 
allowed for DDU entry of some ECR letters, including letters with 
simplified addresses and locally entered mailings of 2,500 pieces or 
less. We eliminate ECR automation basic rates. ECRLOT letters paid for 
at the basic letter rate must meet address matching and coding 
standards and must be delivery-point barcoded and automation-
compatible.
    To help reduce the costs of handling mail in letter trays, we offer 
a reduced--overflow tray option for automation letters. In addition, to 
encourage fuller trays, we change our definition of a ``full letter 
tray'' to one in which the pieces fill the length of the tray between 
85 percent and 100 percent.
Flats
    The physical standards for automation flats retain most of the 
criteria for AFSM 100 pieces, with new standards for flexibility that 
exclude boxes and box-like pieces. We added a rectangular requirement 
and a uniform thickness standard for all flats. The new uniform 
thickness standard allows up to a \1/4\-inch variation in thickness. 
These changes ensure that pieces paid for at automation flats rates can 
be processed in automated operations and delivered as flats. We also 
lessen the deflection standard and allow bound or folded pieces to be 
tested differently than enveloped pieces.
    We increase the maximum size for carrier route flats so that the 
same maximum size applies to all flats, regardless of the rate paid.
Not Flat-Machinable Pieces
    Our prices include a new Not Flat-Machinable (NFM) subcategory for 
rigid flat-size pieces and for large pieces that are currently 
automation-compatible only by meeting UFSM 1000 standards. This 
subcategory provides mailers a

[[Page 15370]]

lower-than-parcel rate option for pieces that do not meet the new 
standards for flats. We do not allow bundling for most NFMs, and 
mailers may prepare pieces in 5-digit/scheme, 3-digit, ADC/BMC, and 
mixed ADC/BMC containers. We allow 5-digit bundles of five or more NFMs 
when the mail is prepared on pallets. We offer a DDU entry rate for 
NFMs sorted to 5-digit destinations when drop shipped directly to the 
DDU. There is no minimum for NFMs drop shipped to DDUs. Unless prepared 
in 5-digit/scheme containers, a $0.05 surcharge applies to all NFMs 
that are not barcoded.
Parcels
    We eliminate the residual shape surcharge for Standard Mail 
parcels. We no longer offer a $0.03 machinable barcode discount. 
Instead, parcel prices include a requirement for barcodes. Unless 
prepared in 5-digit/scheme containers, a $0.05 surcharge applies to all 
parcels that are not barcoded.
    We remove the bundling requirement for all Standard Mail irregular 
parcels except ECR parcels. We reduce the required minimum quantity of 
irregular parcels in sacks to 10 pounds per sack. We allow mailers the 
option of using POSTNET barcodes or parcel barcodes on Standard Mail 
irregular parcels.
    We encourage mailers to commingle machinable parcels, irregular 
parcels, and NFMs when they are able to combine them in 5-digit/scheme 
containers. We allow mailers to combine NFMs under 6 ounces with 
irregular parcels in 3-digit, ADC, and mixed ADC containers. We also 
allow mailers to combine NFMs weighing 6 ounces or more with machinable 
parcels in BMC/ASF and mixed BMC containers. We allow mailers to 
combine Standard Mail parcels, NFMs, machinable Parcel Select, and 
Bound Printed Matter parcels when prepared in 3-digit containers to 
certain ZIP Codes and entered at designated SCFs.
    Our new standards in 401.1.0 allow certain size pieces weighing at 
least 3.5 ounces to be mailed as machinable parcels. This change allows 
mailers to prepare a wider range of machinable parcels separately or 
together with other machinable parcels.
    We offer a DDU entry rate for parcels sorted to 5-digit/scheme 
destinations when drop shipped directly to the DDU. There is no minimum 
for the amount of parcels drop shipped to a DDU.

Customized MarketMail

    Rates for Customized MarketMail equal the 5-digit nonentry rate for 
Not Flat-Machinable pieces, and mailers are still required to drop ship 
Customized MarketMail pieces to DDUs.

Detached Address Labels

    Our prices include a new $0.015 charge for detached address labels 
with ECR pieces. Mailers who prepare mail with addresses on their 
mailpieces could avoid the new charge.

Pallets

    We reduce certain destination pallet minimums to 100 pounds of 
bundles or sacks of nonletter mail or 12 linear feet of trays on 
pallets.

Summary of Periodicals

    As we stated above, we will delay implementation of our new prices 
for Periodicals mail. We will publish a separate Federal Register 
proposal explaining the standards for Periodicals mail resulting from 
the Postal Regulatory Commission's recommended decision, and asking for 
your comments.
    To encourage fuller letter trays, we change our definition of a 
``full letter tray'' to one in which the pieces fill the length of the 
tray between 85 percent and 100 percent. We reduce certain destination 
pallet minimums to 100 pounds of bundles or sacks of nonletter mail or 
12 linear feet of trays on pallets.

Summary of Package Services

    Package Services includes Parcel Post, Bound Printed Matter, Media 
Mail, and Library Mail. Our standards simplify Package Services 
offerings and encourage more efficient handling of parcels.
Parcel Post
    Currently, we charge parcels weighing less than 15 pounds and 
measuring more than 84 inches in combined length and girth the 15-pound 
rates (``balloon rate''). Under the new standards, we charge parcels 
weighing less than 20 pounds and measuring more than 84 inches in 
combined length and girth the 20-pound rates.
    We incorporate the current $0.03 barcode discount available for 
machinable Parcel Select destination bulk mail center (DBMC) entry mail 
into the price, and we require a barcode. Nonbarcoded machinable pieces 
are charged the applicable Intra-BMC/ASF rate.
    We do not change the mail preparation standards for Parcel Select.
Bound Printed Matter
    We rename single-piece Bound Printed Matter ``nonpresorted'' Bound 
Printed Matter, and we eliminate it as a retail option. Customers can 
still use PC Postage or apply meter postage or adhesive stamps to 
nonpresorted BPM and deposit these pieces in a collection box, at the 
retail counter, or with their letter carrier. For flat-size pieces, we 
increase the $0.08 discount from the parcel price to $0.16. We do not 
change the $0.03 per piece POSTNET barcode discount for flat-size mail 
and the $0.03 per piece parcel barcode discount for machinable parcels.
    To reduce sacks, we require 5-digit/scheme and 3-digit/scheme 
bundles and 5-digit/scheme sacks for presorted flat-size Bound Printed 
Matter. We require 5-digit/scheme sacks for machinable and irregular 
parcels.
Media Mail and Library Mail
    To reduce sacks, we require 5-digit/scheme and 3-digit/scheme 
bundles and 5-digit/scheme sacks for presorted flat-size Media Mail and 
Library Mail. We require 5-digit/scheme sacks for machinable and 
irregular parcels.
Pallets
    We reduce certain destination pallet minimums to 100 pounds of 
bundles or sacks of nonletter mail.

Summary of Priority Mail

    We continue to offer convenience in Priority Mail. The USPS-
produced flat-rate envelope is still charged the 1-pound price, 
regardless of weight or destination. USPS-produced flat-rate boxes will 
become a permanent offering. Prices for all Priority Mail pieces 
weighing over 23 pounds decrease for all zones, many by as much as 20 
percent.
    Previously, we charged the 15-pound rates (``balloon rate'') for 
Priority Mail pieces weighing less than 15 pounds and measuring more 
than 84 inches in combined length and girth. Under the new standards, 
we charge the 20-pound rates (the new ``balloon rate'') for Priority 
Mail pieces weighing less than 20 pounds and measuring more than 84 
inches in combined length and girth. We apply the new balloon rate only 
to pieces addressed for local delivery or to zones 1-4.
    Priority Mail pieces that exceed 1 cubic foot and are addressed to 
zones 5-8 are subject to a new dimensional-weight price under 123.1.4. 
We rate postage for these pieces at the greater of their actual weight 
or their dimensional weight. In general, if a piece is relatively light 
for its size, it may be subject to a dimensional-weight price. We 
calculate dimensional weight using one of two formulas, one for 
rectangular and one for nonrectangular pieces.
    USPS-supplied containers containing mailings of other classes of 
mail under Priority Mail Open and Distribute are

[[Page 15371]]

not subject to dimensional weight pricing.

Summary of Express Mail

    Express Mail pieces often contain material that ranges from a half-
pound to 2 pounds. Previously, these pieces paid the 2-pound price. To 
keep Express Mail a viable alternative for mailers, we add a new 1-
pound price. The flat-rate envelope continues to be charged the half-
pound price, regardless of weight.

Summary of Extra Services

    Our proposal keeps insured mail reliable, easy, and affordable. All 
insured pieces will have a barcoded label and receive a delivery scan. 
We will not require a signature at delivery for insured items with an 
indemnity of $200 or less. We also update the standards for filing an 
indemnity claim.
    We provide new prices for Bulk Parcel Return Service, Business 
Reply Mail, Certificate of Mailing, Certified Mail, Collect on 
Delivery, Delivery Confirmation, Bulk Insurance, Express Mail 
Insurance, Merchandise Return Service, Money Orders, Parcel Airlift, 
Parcel Return Service, Registered Mail, Restricted Delivery, Return 
Receipt, Return Receipt for Merchandise, Signature Confirmation, and 
Special Handling.

Summary of Other Services

    Our new standards seek to modernize our services, improve address 
quality, and reduce undeliverable-as-addressed mail.
    We decrease the price for Address Change Service electronic option 
for First-Class Mail from $0.21 to $0.06. We increase the price for all 
other classes of mail from $0.21 to $0.25. We decrease the price for 
manual Address Correction Service for all classes of mail from $0.75 to 
$0.50. For manual notifications received by electronic and automated 
ACS customers, we decrease the prices to match electronic notification 
prices, $0.06 for First-Class Mail and $0.25 for other classes.
    A new automated option for Address Change Service for First-Class 
Mail letters provides the first two notices at no charge, and 
additional notices for $0.05 each. For Standard Mail letters, the first 
two notices are $0.02 each, and additional notices are $0.15 each. This 
new option requires mailers to use the Intelligent Mail barcode.
    The Postal Regulatory Commission recommended that we implement a 
new service to charge for the actual number of Standard Mail pieces 
forwarded and returned. This service would use electronic data to give 
mailers an alternative to the current process that charges a weighted 
rate for the returned pieces only (the weighted rate is intended to 
cover the postage for the forwarded pieces also). The new service would 
be available for Address Change Service pieces using the electronic 
option, or the new automated option using the Intelligent Mail barcode. 
This service will be available to customers through an approval process 
that ensures individual customer and postal systems can adapt to the 
new payment system.
    We no longer offer on-site meter services. We eliminate the fees 
associated with on-site meter service, meter resetting, examination, 
and checking meters in and out of service.
    Individual post office box holders at different locations may 
experience varying price changes as we continue to align prices with 
our costs for each location. Our new prices also realign the Caller 
Service fees based on location.
    We provide new prices for Address Sequencing Service, Confirm, 
Mailing List Service, Permit Imprint, Pickup on Demand service, Premium 
Forwarding Service, Shipper Paid Forwarding, Stamped Cards, Stamped 
Envelopes, and all annual and quarterly mailing fees.
    We provide the updated DMM standards, and how they are applied for 
each type of mail, below.
    We adopt the following amendments 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.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
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); 39 U.S.C. 101, 401, 403, 404, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM), as follows:

100 Retail Mail: Letters, Cards, Flats, and Parcels

101 Physical Standards

1.0 Physical Standards for Letters

1.1 Dimensional Standards for Letters

    Letter-size mail is:
* * * * *
    [Renumber item c as item d. Insert new item c as follows:]
    c. Not more than 3.5 ounces.
* * * * *

1.2 Nonmachinable Criteria

    A letter-size piece is nonmachinable (see 6.4) if it has one or 
more of the following characteristics (see 601.1.4 to determine the 
length, height, top, and bottom of a mailpiece):
    [Renumber items a through i as items b through j. Insert new item a 
as follows:]
    a. Is over 3.5 ounces.
* * * * *

2.0 Physical Standards for Flats

2.1 General Definition

    Flat-size mail is:
* * * * *
    [Renumber item c as new item f. Insert new items c through e as 
follows:]
    c. Flexible (see 2.2).
    d. Rectangular.
    e. Uniformly thick (see 2.3).
* * * * *
    [Insert new 2.2 through 2.4 as follows:]

2.2 Minimum Flexibility Criteria for Flat-Size Pieces

    Flat-size pieces must be flexible. Boxes and box-like pieces--with 
or without hinges, gaps, or breaks that allow the piece to bend--are 
not flats. Tight envelopes that are completely filled to form box-like 
pieces are not flats. Test flats as follows:
    a. All flats:
    1. Place the piece with the length parallel to the edge of a flat 
surface and extend the piece halfway off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's length, exerting steady pressure.
    3. The piece is not flexible if it cannot bend at least 1 inch 
vertically without being damaged.
    4. The piece is flexible if it can bend at least 1 inch vertically 
without being damaged and it does not contain a rigid insert. No 
further testing is necessary.
    5. Test the piece according to 2.2b or 2.2c below if it can bend at 
least 1 inch vertically without being damaged and it contains a rigid 
insert.
    b. Flats 10 inches or longer that pass the test in 2.2a and contain 
a rigid insert:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.

[[Page 15372]]

    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 2 inches vertically without 
being damaged.
    c. Flats less than 10 inches long that pass the test in 2.2a and 
contain a rigid insert:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 1 inch vertically without being 
damaged.

2.3 Uniform Thickness

    Flat-size mailpieces must be uniformly thick so that any bumps, 
protrusions, or other irregularities do not cause more than \1/4\-inch 
variance in thickness. Exclude the outside edges of a mailpiece (1 inch 
from the edge) when determining variance in thickness. Mailers must 
secure nonpaper contents to prevent shifting of more than 2 inches 
within the mailpiece.

2.4 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 2.1 through 2.3 are 
not eligible for flat-size rates and must be paid for at the applicable 
parcel rates.
* * * * *

5.0 Additional Physical Standards for Priority Mail

* * * * *

5.2 Two or More Packages

    [Revise 5.2 as follows:]
    With the exception of USPS-produced Priority Mail flat-rate 
envelopes or boxes, two or more packages may be mailed as a single 
parcel if they are about the same size or shape, are securely wrapped 
or fastened together, and do not exceed the weight or size limits.
* * * * *

6.0 Additional Physical Standards for First-Class Mail

* * * * *

6.4 Nonmachinable Pieces

6.4.1 Nonmachinable Letters

    [Revise 6.4.1 as follows:]
    Letter-size pieces (except card-rate pieces) that weigh 1 ounce or 
less and meet one or more of the nonmachinable characteristics in 1.2 
are subject to the nonmachinable surcharge (see 133.1.11). 
Nonmachinable letters over 1 ounce are charged the First-Class Mail 
letter rate based on weight.
    [Revise heading and text of 6.4.2 as follows:]

6.4.2 Nonmachinable Flats

    Flat-size pieces that do not meet the standards in 2.0 are subject 
to the applicable postage for a parcel-size piece, based on weight.
* * * * *
    [Delete 8.0, Additional Physical Standards for Bound Printed 
Matter. Renumber 9.0 and 10.0 as new 8.0 and 9.0.]
* * * * *

102 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *
    [Revise heading of 3.3 as follows:]

3.3 Mail Markings

    [Revise first sentence of 3.3 as follows:]
    Mailers must print the basic required Package Services subclass 
marking--``Parcel Post'' or ``PP,'' ``Media Mail,'' or ``Library 
Mail''--on each piece claimed at the respective rate.* * *
* * * * *

110 Retail Mail: Express Mail

113 Rates and Eligibility

1.0 Express Mail Rates and Fees

* * * * *

1.2 Express Mail Rate Application

    [Revise 1.2 as follows:]
    Except under 1.4, Flat-Rate Envelope, Express Mail items are 
charged the 0.5-pound rate for items up to 0.5 pound. Items over 0.5 
pound are rounded up to the next whole pound. For example, if a piece 
weighs 0.25 pound, the weight (postage) increment is 0.5 pound; if a 
piece weighs 0.75 pound, the weight (postage) increment is 1 pound; if 
a piece weighs 1.2 pounds, the weight (postage) increment is 2 pounds.
* * * * *

120 Retail Mail: Priority Mail

123 Rates and Eligibility

1.0 Priority Mail Rates and Fees

* * * * *

1.2 Priority Mail Rate Application

    [Revise 1.2 as follows:]
    Except under 1.3, 1.4, and 1.5, Priority Mail rates are charged per 
pound; any fraction of a pound is rounded up to the next whole pound. 
For example, if a piece weighs 1.2 pounds, the weight (postage) 
increment is 2 pounds. The minimum postage amount per addressed piece 
is the 1-pound rate. The Priority Mail rate up to 1 pound is based on 
weight only; rates for pieces weighing more than 1 pound are based on 
weight and zone. Other charges may apply. See Exhibit 1.3, Priority 
Mail Rates.
    [Revise the heading and text of 1.3 as follows:]

1.3 Minimum Rate for Parcels to Zones 1-4

    Parcels addressed for delivery to Zones 1-4 (including Local) that 
weigh less than 20 pounds but measure more than 84 inches (but not more 
than 108 inches) in combined length and girth are charged the 
applicable zone rate for a 20-pound parcel (balloon rate).
    [Delete 1.6 and 1.7; renumber 1.4 and 1.5 as new 1.6 and 1.7. 
Insert new 1.4 and 1.5 as follows:]

1.4 Dimensional Weight Rate for Low-Density Parcels to Zones 5-8

    Postage for parcels addressed for delivery to Zones 5-8 and 
exceeding 1 cubic foot (1,728 cubic inches) is based on the actual 
weight or the dimensional weight (as calculated in 1.4.1 or 1.4.2), 
whichever is greater.

1.4.1 Determining Dimensional Weight for Rectangular Parcels

    Follow these steps to determine the dimensional weight for a 
rectangular parcel:
    a. Measure the length, width, and height in inches. Round off (see 
604.7.0) each measurement to the nearest whole inch.
    b. Multiply the length by the width by the height.
    c. If the result exceeds 1,728 cubic inches, divide the result by 
194 and round up (see 604.7.0) to the next whole number to determine 
the dimensional weight in pounds.

1.4.2 Determining Dimensional Weight for Nonrectangular Parcels

    Follow these steps to determine the dimensional weight for a 
nonrectangular parcel:
    a. Measure the length, width, and height in inches at their extreme 
dimensions. Round off (see 604.7.0) each measurement to the nearest 
whole inch.
    b. Multiply the length by the width by the height.
    c. Multiply the result by an adjustment factor of 0.785.
    d. If the final result exceeds 1,728 cubic inches, divide the 
result by 194

[[Page 15373]]

and round up (see 604.7.0) to the next whole number to determine the 
dimensional weight in pounds.
    e. If the dimensional weight exceeds 70 pounds, the parcel pays the 
70-pound rate.

1.5 Flat-Rate Boxes and Envelopes

    Any amount of material may be mailed in a USPS-produced Priority 
Mail flat-rate box or flat-rate envelope. When sealing a flat-rate box 
or flat-rate envelope, the container flaps must be able to close within 
the normal folds. Tape may be applied to the flaps and seams to 
reinforce the container, provided the design of the container is not 
enlarged by opening the sides and the container is not reconstructed in 
any way.

1.5.1 Flat-Rate Boxes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate box is charged $9.15, 
regardless of the actual weight of the piece or its destination. Only 
USPS-produced flat-rate boxes are eligible for the flat-rate box rate.

1.5.2 Flat-Rate Envelopes--Rate and Eligibility

    Each USPS-produced Priority Mail flat-rate envelope is charged 
$4.60, regardless of the actual weight of the piece or its destination. 
Only USPS-produced flat-rate envelopes are eligible for the flat-rate 
envelope rate.
* * * * *

130 Retail Mail: First-Class Mail

133 Rates and Eligibility

1.0 First-Class Mail Rates and Fees

1.1 First-Class Mail Single-Piece Rate Application

    The single-piece rates for First-Class Mail are applied as follows:
* * * * *
    [Revise the weight limit in item b as follows:]
    b. The letter rate applies to letter-size pieces that meet the 
standards in 101.1.1 and weigh 3.5 ounces or less, and that are not 
eligible for and claimed at the card rate.
    [Insert new items c and d as follows:]
    c. The flat rate applies to flat-size pieces that meet the 
standards in 101.2.1.
    d. The parcel rate applies to parcel-size pieces under 101.3.0 and 
to flat-size pieces that do not meet the standards in 101.2.0.
* * * * *
    [Renumber 1.7, Rates for Keys and Identification Devices, as new 
1.9. Restructure the rate tables in 1.5 and 1.6 into new 1.5 through 
1.7 for separate letter, flat, and parcel rates.]

1.8 Keys and Identification Devices

    [Revise 1.8 to remove references to the nonmachinable surcharge in 
the first three sentences as follows:]
    Keys and identification devices (such as identification cards and 
uncovered identification tags) that weigh 13 ounces or less are 
returned at the applicable single-piece First-Class Mail parcel rate 
plus the fee. Keys and identification devices that weigh more than 13 
ounces but not more than 1 pound are returned at the 1-pound Priority 
Mail rate plus the fee. Keys and identification devices weighing more 
than 1 pound but not more than 2 pounds are mailed at the 2-pound 
Priority Mail rate for zone 4 plus the fee. * * *
* * * * *
    [Renumber 1.9 through 1.11 as new 1.10 through 1.12.]

1.11 Applicability of Nonmachinable Surcharge

    [Revise renumbered 1.11 as follows:]
    The nonmachinable surcharge applies to letter-size pieces that 
weigh 1 ounce or less and meet one or more of the nonmachinable 
characteristics in 101.1.2. Pieces mailed at the card rate are not 
subject to the nonmachinable surcharge.
* * * * *

2.0 Basic Eligibility Standards for First-Class Mail

2.1 Description of Service

* * * * *

2.1.2 Rate Options

    [Revise 2.1.2 to add shape-based reference as follows:]
    First-Class Mail offers shape-based single-piece rates in 1.0.
* * * * *

150 Retail Mail: Parcel Post

153 Rates and Eligibility

1.0 Parcel Post Rates and Fees

1.1 Rate Eligibility

    There are two Parcel Post retail rate categories: Intra-BMC and 
Inter-BMC. Intra-BMC and Inter-BMC Parcel Post rates are calculated 
based on the zone to which the parcel is addressed and the weight of 
the parcel. Requirements for Parcel Post rates and discounts are as 
follows:
* * * * *
    [Revise item d as follows:]
    d. Parcels that weigh less than 20 pounds but measure more than 84 
inches (but not more than 108 inches) in combined length and girth are 
charged the applicable rate for a 20-pound parcel (balloon rate).
* * * * *

1.7 Inter-BMC/ASF Machinable Parcel Post

    [Revise 1.7 as follows:]
    For barcode discount, deduct $0.03 per parcel (50-piece minimum). 
Parcels that weigh less than 20 pounds but measure more than 84 inches 
(but not more than 108 inches) in combined length and girth are charged 
the applicable rate for a 20-pound parcel (balloon rate).

1.8 Inter-BMC/ASF Nonmachinable Parcel Post

    [Revise 1.8 as follows:]
    Rates include the $3.89 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must be charged the rate listed in 
Exhibit 1.9. Parcels that weigh less than 20 pounds but measure more 
than 84 inches (but not more than 108 inches) in combined length and 
girth are charged the applicable rate for a 20-pound parcel (balloon 
rate). The nonmachinable surcharge does not apply to parcels mailed at 
oversized rates or parcels sent with special handling.
* * * * *

1.10 Local and Intra-BMC/ASF Machinable Parcel Post

    [Revise 1.10 as follows:]
    Rates for parcels that originate and destinate in the same BMC 
service area are in Exhibit 1.12, Local and Intra-BMC/ASF Machinable 
and Nonmachinable Parcel Post Rates. For barcode discount, deduct $0.03 
per parcel (50-piece minimum). Parcels that weigh less than 20 pounds 
but measure more than 84 inches (but not more than 108 inches) in 
combined length and girth are charged the applicable rate for a 20-
pound parcel (balloon rate). Regardless of weight, a parcel with any of 
the characteristics in 101.7.2 must be charged the rate for a 
nonmachinable parcel in 1.11.

1.11 Local and Intra-BMC/ASF Nonmachinable Parcel Post

    [Revise 1.11 as follows:]
    Rates include the $2.87 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must be charged the rates in 
Exhibit 1.12. Parcels that weigh less than 20 pounds but measure more 
than 84 inches (but not more than 108 inches)

[[Page 15374]]

in combined length and girth are charged the applicable rate for a 20-
pound parcel (balloon rate). The nonmachinable surcharge does not apply 
to parcels mailed at oversized rates or parcels sent with special 
handling.
* * * * *
    [Delete Chapter 160, Retail Mail: Bound Printed Matter, in its 
entirety. These standards are incorporated into chapters 360 and 460.]
* * * * *

200 Discount Mail: Letters and Cards

201 Physical Standards

1.0 Physical Standards for Machinable Letters and Cards

1.1 Physical Standards for Machinable Letters

* * * * *

1.1.2 Weight Standards for Machinable Letters

    [Revise 1.1.2 to change the maximum weight for First-Class Mail 
machinable letters to 3.5 ounces as follows:]
    The maximum weight for Presorted First-Class Mail machinable 
letters is 3.3 ounces (0.2063 pound). The maximum weight for Standard 
Mail machinable letters is 3.3 ounces (0.2063 pound).
* * * * *

2.0 Physical Standards for Nonmachinable Letters

2.1 Criteria for Nonmachinable Letters

    A letter-size piece is nonmachinable if it has one or more of the 
following characteristics (see 601.1.4 to determine the length, height, 
top, and bottom of a mailpiece):
    [Renumber items a through i as items b through j. Insert new item a 
as follows:]
    a. Is over 3.3 ounces, unless prepared as an automation-rate 
letter.
* * * * *
    [Delete 2.2.2, Nonmachinable Surcharge--Letter-Size Pieces. 
Renumber 2.2.1 as new 2.2 and revise as follows:]

2.2 Additional Criteria for First-Class Mail Nonmachinable Letters

    Letter-size pieces (except card-rate pieces) that weigh 1 ounce or 
less and meet one or more of the nonmachinable characteristics in 2.1 
are subject to the nonmachinable surcharge (see 133.1.10). 
Nonmachinable letters over 1 ounce and up to 3.5 ounces are charged the 
First-Class Mail letter rates based on weight. All letter-size pieces 
over 3.5 ounces are prepared as letters and charged the flat-size 
rates.
    [Delete 2.3.2, Nonmachinable Surcharge Not Applied. Renumber 2.3.1 
as new 2.3 and revise as follows:]

2.3 Additional Criteria for Standard Mail Nonmachinable Letters

    The nonmachinable rates in 243.1.5 apply to Standard Mail letter-
size pieces that weigh 3.3 ounces or less and have one or more of the 
nonmachinable characteristics in 2.1.

3.0 Physical Standards for Automation Letters and Cards

* * * * *

3.3 Weight Standards for First-Class Mail Automation Letters and Cards

    [Revise 3.3 to change the weight limit as follows:]
    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound). See 3.13.4 for pieces heavier than 3 ounces.

3.4 Weight Standards for Standard Mail Automation Letters

    [Revise 3.4 to remove the reference to automation carrier route 
mail as follows:]
    Maximum weight for Standard Mail mailed at automation and Enhanced 
Carrier Route is 3.5 ounces (0.2188 pound). See 3.13.4 for pieces 
heavier than 3 ounces.
* * * * *

202 Elements on the Face of a Mailpiece

* * * * *

3.0 Placement and Content of Mail Markings

* * * * *

3.3 Placement of Mail Markings

* * * * *
    [Revise item b, item b3, and item c to delete ``AUTOCR.'']

3.4 Exceptions to Markings

    Exceptions are as follows:
    [Revise item a to remove references to carrier route mail as 
follows:]
    a. Automation Letters. First-Class Mail and Standard Mail letters 
do not require an ``AUTO'' marking if they bear a DPBC or an 
Intelligent Mail barcode with a delivery point routing code in the 
address block or on an insert visible through a window. First-Class 
Mail letters not marked ``AUTO'' must bear both the ``Presorted'' or 
``PRSRT'' and ``First-Class'' markings. Standard Mail letters not 
marked ``AUTO'' must bear the appropriate basic marking in 3.3a.
    [Revise item b as follows:]
    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece as required in 3.3a. The two-letter rate category 
code required in the keyline on manifest mailing pieces prepared under 
705.2.0, Manifest Mailing System, meets the requirement for other rate 
markings.
* * * * *

230 Discount Letters and Cards: First-Class Mail

233 Rates and Eligibility

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

    [Revise 1.1 to add ``letter'' as follows:]
    Postage is based on the letter rate that applies to the weight of 
each addressed piece.

1.2 Rate Computation for First-Class Mail Letters

    [Revise the first sentence in 1.2 to add ``letter'' as follows:]
    First-Class Mail letter rates are charged per ounce or fraction 
thereof; any fraction of an ounce is considered a whole ounce. For 
example, if a piece weighs 1.2 ounces, the weight (postage) increment 
is 2 ounces. The minimum postage per addressed piece is that for a 
piece weighing 1 ounce.
* * * * *
    [Delete 1.13, Carrier Route Automation Cards, and 1.14, Carrier 
Route Automation Letters. Renumber 1.15 through 1.19 as new 1.13 
through 1.17.]
* * * * *

3.0 Basic Standards for First-Class Mail Letters

3.1 Description of Service

* * * * *

3.1.2 Rate Options

    [Revise 3.1.2 as follows:]
    First-Class Mail letters offer shape-based single-piece rates in 
133.1.0 and discounted rates in 1.0 for presorted mailings of 500 or 
more pieces that weigh 3.5 ounces or less.
* * * * *

3.3 Additional Basic Standards for First-Class Mail

    [Revise introductory text in 3.3 as follows:]
    All pieces of presorted First-Class Mail letters must:
* * * * *
    [Revise the weight in item b as follows:]
    b. Weigh 3.5 ounces or less.
* * * * *

[[Page 15375]]

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Letters

* * * * *

4.3 Nonmachinable Surcharge for Letter-Size Pieces

    [Revise 4.3 as follows:]
    The nonmachinable surcharge in 1.14 applies to letter-size pieces 
(except card-rate pieces) that weigh 1 ounce or less and meet one or 
more of the nonmachinable characteristics in 201.2.1. Nonmachinable 
letters over 1 ounce are charged the First-Class Mail letter rate based 
on weight.
    [Revise heading of 5.0 to delete ``Carrier Route'' as follows:]

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Letters

    [Revise heading of 5.1 as follows:]

5.1 Basic Standards for Automation First-Class Mail Letters

    All pieces in a First-Class Mail automation rate mailing must:
* * * * *
    [Delete item d2. Move text in item d1 into item d as follows.]
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets the address matching and coding standards in 5.6, 
Address Standards for Barcoded Pieces, and 708.3.0, Coding Accuracy 
Support System (CASS).
* * * * *
    [Delete 5.2, Carrier Route Accuracy, and renumber 5.3 and 5.4 as 
new 5.2 and 5.3.]
* * * * *

5.2 Maximum Weight for Automation Letters

    [Revise renumbered 5.2 to change maximum weight from 3.3 to 3.5 
ounces as follows:]
    Maximum weight for First-Class Mail automation letters is 3.5 
ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces 
heavier than 3 ounces).

5.3 Rate Application--Automation Cards and Letters

    Automation rates apply to each piece that is sorted under 235.6.0 
into the corresponding qualifying groups:
    [Delete item a. Renumber items b through e as new items a through d 
and revise as follows:]
    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for the 5-digit rate is 
optional. Pieces placed in full 3-digit/scheme trays in lieu of 5-
digit/scheme overflow trays under 235.6.6 are eligible for the 5-digit 
rates.
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays in lieu of 3-digit/
scheme overflow trays under 235.6.6 are eligible for the 3-digit rates.
    c. Groups of fewer than 150 pieces in origin 3-digit/scheme trays 
and all pieces in AADC trays qualify for the AADC rate. Pieces placed 
in mixed AADC trays in lieu of AADC overflow trays under 235.6.6 are 
eligible for the AADC rates.
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 5.3c.
* * * * *
    [Delete 5.5 and renumber 5.6 and 5.7 as new 5.4 and 5.5.]
* * * * *
    [Delete renumbered 5.4.7, Rural and Highway Contract Routes. 
Renumber 5.4.8 as new 5.4.7.]
* * * * *

235 Mail Preparation

1.0 General Definition of Terms

* * * * *

1.2 Definitions of Mailings

    Mailings are defined as:
    [Revise the second sentence in item a to remove ``automation 
carrier route'' as follows:]
    a. * * * Generally, automation and nonautomation letters must be 
prepared as separate mailings.* * *
* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
    [Delete item a and renumber items b through k as new items a 
through j.]
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item b as follows:]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
    [Revise the last sentence in item e to delete 5-digit scheme trays 
as an option and to require 5-digit/scheme sorting to qualify for the 
5-digit rate as follows:]
    e. * * * When standards require 5-digit/scheme sorting, mailers 
must prepare all possible 5-digit/scheme trays, then prepare all 
possible 5-digit trays.
    [Revise item f by adding a new last sentence as follows:]
    f. * * * When standards require 3-digit/scheme sorting, mailers 
must prepare all possible 3-digit/scheme trays, then prepare all 
possible 3-digit trays.
* * * * *

2.0 Bundles

* * * * *

2.3 Preparing Bundles

    Cards and letter-size pieces are subject to these bundling 
standards:
    [Revise item a as follows:]
    a. The maximum thickness for bundles is 6 inches.
* * * * *
    [Delete item d and renumber items e and f as new items d and e.]
* * * * *

2.8 Labeling Bundles

    [Revise the first sentence in the introductory text to delete the 
reference to carrier route bundles as follows:]
    Unless excepted by standard, the presort level of each bundle must 
be identified either with an optional endorsement line under 708.7.0 or 
with a barcoded pressure-sensitive bundle label. On letter-size mail 
(including card-size pieces), the bundle label must be placed in the 
lower left corner of the address side of the top piece in the bundle. 
Bundle labels must not be obscured by banding or shrinkwrap. The 
following colors and presort characters apply to bundle labels:
* * * * *
    [Delete 2.9, Use of Carrier Route Information Lines, and 2.10, 
Facing Slips--All Carrier Route Mail.]
* * * * *

4.0 Tray Labels

* * * * *

4.4 Line 2 (Content Line)

    Line 2 (content line) must meet these standards:
* * * * *
    b. Codes: The codes shown below must be used as appropriate on Line 
2 of tray labels.
    [Revise the table in item 4.4b to delete the entries for ``Carrier 
Route,'' ``Carrier Routes,'' ``General Delivery Unit,'' ``Highway 
Contract Route,'' ``Post Office Box Section,'' and ``Rural Route.'']
* * * * *

5.0 Preparing Nonautomation Letters

* * * * *
    [Delete 5.2, Manual Only Option, and renumber 5.3 and 5.4 as new 
5.2 and 5.3.]

5.2 Machinable Preparation

* * * * *

[[Page 15376]]

5.2.2 Traying and Labeling

    [Delete item a about labeling the 5-digit tray. Renumber items b 
through d as new items a through c. Revise renumbered item a to reflect 
the 3-digit origin tray as follows:]
* * * * *
    a. Separate 3-digit origin trays required for each origin 3-digit 
ZIP Code; no minimum piece requirement; one less-than-full tray 
permitted for each origin ZIP Code; labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``FCM LTR 3D MACH.''
* * * * *

5.3 Nonmachinable Preparation

5.3.1 Nonmachinable Bundling

    [Delete the second-to-last sentence in the introductory text to 
remove the ``manual only'' option as follows:]
    Except as provided in 2.5, Exception to Bundle Preparation--Full 
Single-Sort-Level Trays, bundling is required before traying. A bundle 
must be prepared when the quantity of addressed pieces for a required 
presort level reaches a minimum of 10 pieces. Smaller volumes are not 
permitted except for mixed ADC bundles. Preparation sequence, bundle 
size, and labeling:
* * * * *

6.0 Preparing Automation Rate Letters

* * * * *

6.2 Mailings

    The requirements for mailings are as follows:
* * * * *
    [Revise item b as follows:]
    b. First-Class Mail. A single automation rate First-Class Mail 
mailing may include pieces prepared at 5-digit, 3-digit, AADC, and 
mixed AADC rates.
* * * * *

6.3 Marking

    [Revise 6.3 to delete the carrier route references as follows:]
    All automation rate pieces must be marked under 202.3.0, Placement 
and Content of Mail Markings, and 202.4.0, Endorsement Placement. 
Pieces claimed at an automation rate must bear the appropriate class 
marking and, except as provided in 202.3.0, Placement and Content of 
Mail Markings, and 202.4.0, Endorsement Placement, ``AUTO.'' Pieces not 
claimed at an automation rate must not bear ``AUTO'' unless single-
piece rate postage is affixed or the corrective single-piece rate 
marking (``SNGLP'' or ``Single-Piece'') is applied.

6.4 General Preparation

    [Revise 6.4 as follows:]
    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 6.6.
* * * * *
    [Delete 6.6 and 6.7. Renumber 6.8 through 6.10 as new 6.6 through 
6.8.]

6.6 Tray Preparation

    [Add introductory statement about overflow trays to 6.6 as 
follows:]
    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level when a tray of 
150 or more pieces can be made. Mailers must note these trays on 
standardized documentation (see 708.1.2). Pieces that are placed in the 
next tray level must be grouped by destination and placed in the front 
of that tray. Mailers may use this option selectively for 3-digit and 
AADC ZIP Codes. This option does not apply to origin/entry 3-digit/
scheme trays. Preparation sequence, tray size, and Line 1 labeling:
    [Delete items a through c and renumber items d through g as new 
items a through d. Revise renumbered item a as follows:]
    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed.
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
* * * * *

6.7 Tray Line 2

    Line 2: ``FCM LTR'' and:
    [Delete items a through c and renumber items d through i as new 
items a through f as follows:]
    a. 5-digit scheme: ``BC 5D SCHEME.''
    b. 5-digit: ``5D BC.''
    c. 3-digit scheme: ``BC 3D SCHEME'' and, if applicable, as shown in 
L002, Column B, followed by the letter ``A,'' ``B,'' or ``C.''
    d. 3-digit: ``3D BC.''
    e. AADC: ``AADC BC.''
    f. Mixed AADC: ``BC WKG.''
* * * * *

240 Discount Letters and Cards: Standard Mail

243 Rates and Eligibility

1.0 Rates and Fees for Standard Mail

* * * * *
    [Delete 1.5, Nonmachinable Surcharge. Renumber 1.6 and 1.7 as new 
1.5 and 1.6.]
* * * * *

1.6 Computing Postage for Standard Mail

* * * * *

1.6.8 Discount for Heavy Automation Letters

    [Revise renumbered 1.6.8 to delete the second-to-last sentence, 
about automation ECR.]
* * * * *
    [Delete renumbered 1.6.10, Discount for Heavy ECR Basic Automation 
Letters.]
* * * * *

3.0 Basic Standards for Standard Mail Letters

* * * * *

3.2 Defining Characteristics

3.2.1 Mailpiece Weight

    [Revise 3.2.1 as follows:]
    All Standard Mail pieces must weigh less than 16 ounces. The 
following weight limits also apply to pieces mailed at Standard Mail 
letter rates:
    a. Pieces mailed at machinable and nonmachinable letter rates may 
weigh up to 3.3 ounces. Letter-size pieces weighing more than 3.3 
ounces and prepared as nonmachinable letters are mailable at Not Flat-
Machinable rates (see 443) and must be marked ``Not Flat-Machinable'' 
or ``NFM'' according to 402.2.0, unless they are barcoded and eligible 
to be mailed as automation flats under 301.3.0.
    b. Pieces mailed at automation letter rates or Enhanced Carrier 
Route rates may weigh up to 3.5 ounces.
* * * * *

3.3 Additional Basic Standards for Standard Mail

    Each Standard Mail mailing is subject to these general standards:
* * * * *
    [Revise item e to add a reference to 3.8.1 as follows:]
    e. Each piece must bear the addressee's name and delivery address, 
including the correct ZIP Code or ZIP+4 code (see 3.8.1), unless an 
alternative addressing format is used subject to 602.3.0. Detached 
address labels may be used subject to 602.4.0.
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

[[Page 15377]]

4.2 Minimum Per Piece Rates

    The minimum per piece rates (the minimum postage that must be paid 
for each piece) apply as follows:
* * * * *
    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a letter based on whether the piece meets the letter-
size standard in 201.1.1.1, without regard to placement of the address 
on the piece, except under these conditions:
    [Revise item b1 to delete ``(nonletter)'' as follows:]
    1. If the piece meets both the definition of a letter in 201.1.1.1 
and the definition of an automation flat in 301.3.0, the piece may be 
prepared and entered at an automation flat rate.
* * * * *
    [Revise item b3 by changing the base rate for Customized MarketMail 
as follows:]
    3. Pieces mailed as Customized MarketMail under 705.1.0 must be 
charged the Regular or Nonprofit Standard Mail 5-digit nonentry rates 
for Not Flat-Machinable pieces and must not exceed 3.3 ounces.
    [Revise item c to delete the last sentence, about DDU rates.]
* * * * *
    [Delete 4.4, Residual Shape Surcharge.]
    [Replace ``presorted'' with ``nonautomation'' throughout 5.0.]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Letters

* * * * *
    [Revise heading and text of 5.4 to refer to new AADC and mixed AADC 
rates, instead of basic rates, as follows:]

5.4 Machinable Rate Application

    Machinable letters are subject only to AADC and mixed AADC rates.

5.4.1 AADC Rate

    The AADC rate applies to qualifying letter-size machinable pieces 
(see 201.1.0, Physical Standards for Machinable Letters and Cards) 
placed in origin/entry 3-digit trays, to quantities of 150 or more 
pieces prepared in AADC trays for a single AADC, and to pieces placed 
in mixed AADC trays in lieu of overflow AADC trays.

5.4.2 Mixed AADC Rate

    The mixed AADC rate applies to qualifying letter-size machinable 
pieces that the mailer prepares in mixed AADC trays, except for pieces 
placed in mixed AADC trays in lieu of overflow AADC trays (see 
245.5.3.2).
    [Delete 5.5 and 5.6. Insert new 5.5 as follows:]

5.5 Nonmachinable Rate Application

    Nonmachinable rates in 1.0 apply only to Standard Mail letter-size 
pieces (including card-size pieces) weighing 3.3 ounces or less that 
have one or more of the nonmachinable characteristics in 201.2.1. 
Except for Enhanced Carrier Route letter-size pieces, nonmachinable 
letter-size pieces weighing more than 3.3 ounces are subject to Not 
Flat-Machinable rates (see 443) unless they are barcoded and eligible 
to be mailed as automation flats under 301.3.0. Nonmachinable Enhanced 
Carrier Route letter-size pieces over 3.3 ounces are subject to the 
Enhanced Carrier Route flats rates.

5.5.1 5-Digit Rate

    The 5-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 5-digit ZIP Code and presented in 5-digit trays under 
245.5.0.

5.5.2 3-Digit Rate

    The 3-digit rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) prepared in quantities of 150 or more 
pieces for a 3-digit ZIP Code and presented in 3-digit trays under 
245.5.0.

5.5.3 ADC Rate

    The ADC rate applies to letter-size pieces subject to the 
nonmachinable rates (see 5.5) placed in 3-digit origin/entry trays and 
to pieces prepared in quantities of 150 or more for an ADC and 
presented in ADC trays under 245.5.0.

5.5.4 Mixed ADC Rate

    The mixed ADC rate applies to letter-size pieces that are subject 
to the nonmachinable rates and prepared in mixed ADC trays.
    [Revise heading of 6.0 as follows:]

6.0 Additional Eligibility Standards for Enhanced Carrier Route 
Standard Mail Letters

6.1 General Enhanced Carrier Route Standards

6.1.1 Optional Preparation

* * * * *
    [Revise 6.1.1 to delete the last sentence, about automation basic 
carrier route.]

6.1.2 Basic Eligibility Standards

    All pieces in an Enhanced Carrier Route or Nonprofit Enhanced 
Carrier Route Standard Mail mailing must:
* * * * *
    [Revise item b to delete the second sentence, about automation 
basic carrier route, as follows:]
    b. Be part of a single mailing of at least 200 pieces or 50 pounds 
of pieces of Enhanced Carrier Route Standard Mail. ECR and Nonprofit 
ECR mailings must meet separate minimum volumes.
* * * * *
    d. Bear a delivery address that includes the correct ZIP Code, 
ZIP+4 code, or numeric equivalent to the delivery point barcode (DPBC) 
and that meets these address quality standards:
* * * * *
    [Revise item d2 to require address matching and coding for all ECR 
letters as follows:]
    2. The address matching and coding standards in 7.4, Address 
Standards for Barcoded Pieces, and 708.3.0, Coding Accuracy Support 
System (CASS).
* * * * *

6.1.3 Maximum Weight for Enhanced Carrier Route Letters

    [Revise 6.1.3 to specify the maximum weight for all Standard Mail 
ECR pieces as follows:]
    Maximum weight for Standard Mail Enhanced Carrier Route pieces: 3.5 
ounces (0.2188 pound) (see 201.3.13.4, Heavy Letter Mail, for pieces 
heavier than 3 ounces).

6.2 Carrier Route Accuracy

6.2.1 Basic Standards

    The carrier route accuracy standard is a means of ensuring that the 
carrier route code correctly matches the delivery address information. 
For the purposes of this standard, address means a specific address 
associated with a specific carrier route code. Addresses used on pieces 
claiming certain rates under 6.2.2 that are subject to the carrier 
route accuracy standard must meet these requirements:
    [Revise item a to delete the last sentence, about ECR automation 
rate Standard Mail, as follows:]
    a. Each address and associated carrier route code used on the 
mailpieces in a mailing must be updated within 90 days before the 
mailing date with one of the USPS-approved methods in 3.8.2.
* * * * *

6.3 Basic Rate Enhanced Carrier Route Standards

* * * * *

6.3.2 Basic Rate Eligibility

    [Revise 6.3.2 to add the option for groups of 10 or more pieces, 
and the automation-compatible and barcode requirements, as follows:]

[[Page 15378]]

    Basic rates apply to each piece sorted under 245.6.0 or 705.8.0 in 
a full carrier route tray, in a carrier route bundle of 10 or more 
pieces, or in groups of 10 or more pieces placed in a 5-digit carrier 
routes or a 3-digit carrier routes tray. Basic rates also apply under 
these conditions:
    a. Basic letter rates apply to each piece that is automation-
compatible according to 201.3.0, Physical Standards for Automation 
Letters and Cards, and has an accurate delivery point barcode or 
Intelligent Mail barcode under 202.5.0, Barcode Placement, and 708.4.0, 
Barcoding Standards for Letters and Flats.
    b. Pieces that are not automation-compatible or not barcoded are 
mailable at the basic rate for flat-size pieces.
* * * * *
    [Delete 6.6, Automation ECR Standards.]
* * * * *

7.0 Eligibility Standards for Automation Rate Standard Mail

* * * * *

7.3 Rate Application for Automation Letters

    Automation rates apply to each piece that is sorted under 245.7.0, 
Preparing Automation Rate Letters, into the corresponding qualifying 
groups:
    [Revise items a through d to accommodate an option to overflow 
trays as follows:]
    a. Groups of 150 or more pieces in 5-digit/scheme trays qualify for 
the 5-digit rate. Preparation to qualify for that rate is optional. 
Pieces placed in full 3-digit/scheme trays under 245.7.5 in lieu of 5-
digit/scheme overflow trays are eligible for 5-digit rates (see 
245.7.5).
    b. Groups of 150 or more pieces in 3-digit/scheme trays qualify for 
the 3-digit rate. Pieces placed in full AADC trays under 245.7.5 in 
lieu of 3-digit/scheme overflow trays are eligible for 3-digit rates 
(see 245.7.5).
    c. Groups of fewer than 150 pieces in origin/entry 3-digit/scheme 
trays and groups of 150 or more pieces in AADC trays qualify for the 
AADC rate. Pieces placed in mixed AADC trays under 245.7.5 in lieu of 
AADC overflow trays also are eligible for AADC rates (see 245.7.5).
    d. Pieces in mixed AADC trays qualify for the mixed AADC rate, 
except for pieces prepared under 7.3c.
* * * * *

245 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.2 Definitions of Mailings

    Mailings are defined as:
* * * * *
    b. Standard Mail. Except as provided in 243.3.6, Residual Volume 
Requirement, the types of Standard Mail listed below may not be part of 
the same mailing.
    [Delete item b1, about automation ECR. Renumber items b2 through b8 
as new items b1 through b7.]
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item b as follows:]
    b. A full letter tray is one in which faced, upright pieces fill 
the length of the tray between 85% and 100% full.
* * * * *
    [Revise the last sentence in item e as follows:]
    e. A 5-digit scheme sort for automation letters yields 5-digit 
scheme trays for those 5-digit ZIP Codes identified in the USPS City 
State Product and 5-digit trays for other areas. Mail prepared using 5-
digit scheme sort must be entered no later than 90 days after the 
release date of the City State Product used to obtain the scheme 
information (see 708.3.0, Coding Accuracy Support System (CASS)). The 
5-digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation by 5-digit ZIP Code required. Trays prepared for a 5-digit 
scheme destination that contain pieces for only one of the schemed 5-
digit ZIP Codes are still considered 5-digit scheme sorted and are 
labeled accordingly. When standards require 5-digit/scheme sort, 
mailers must prepare all possible 5-digit scheme trays, then prepare 
all possible 5-digit trays.
    [Revise item f to add a new last sentence as follows:]
    f. A 3-digit scheme sort yields 3-digit scheme trays for those 3-
digit ZIP Code prefixes listed in L003 and 3-digit trays for other 
areas. The 3-digit ZIP Code prefixes in each scheme are treated as a 
single presort destination subject to a single minimum tray volume, 
with no further separation by 3-digit prefix required. Trays prepared 
for a 3-digit scheme destination that contain pieces for only one of 
the schemed 3-digit areas are still considered 3-digit scheme sorted 
and are labeled accordingly. When standards require 3-digit/scheme 
sort, mailers must prepare all possible 3-digit scheme trays, then 
prepare all possible 3-digit trays.
* * * * *

2.0 Bundles

* * * * *

2.3 Preparing Bundles

    Cards and letter-size pieces are subject to these bundling 
standards:
* * * * *
    [Revise item c to delete ``and for Standard Mail pieces where the 
mailer has requested `manual only' processing'' as follows:]
    c. Bundles must be prepared for mail in all less-than-full trays 
and for nonmachinable Standard Mail.
    [Revise item d to delete the second sentence as follows:]
    d. Except under 245.6.7, separator cards or tic marks may be used 
instead of bundling for letter-size pieces in full 5-digit carrier 
routes trays of Enhanced Carrier Route Standard Mail. The cards must be 
of paper or card stock, at least 0.25 inch higher than the highest 
pieces in the mailing, and in front of the corresponding groups of 
mail. The tic mark must be applied during the mailpiece production 
process and be printed on the top edge of the envelope, to the left of 
the center line of the envelope.
* * * * *

4.0 Tray Labels

* * * * *

4.9 Barcoded Tray Labels

4.9.1 Basic Standards for Barcoded Tray Labels

* * * * *

Exhibit 4.9.1 Required Barcoded Container Labels

    [Revise Exhibit 4.9.1 to require barcoded tray labels for all ECR 
letters mailed at letter rates, except for pieces with simplified 
addresses, as follows:]

------------------------------------------------------------------------
              Rate or type                     Processing category
------------------------------------------------------------------------
Standard Mail..........................  ...............................

                                * * * * *
Enhanced Carrier Route.................  Letter-size (barcoded labels
                                          not required for letter-size
                                          pieces with simplified
                                          addresses or paid for at
                                          nonletter rates).
------------------------------------------------------------------------

    [Revise heading of 5.0 as follows:]

5.0 Preparing Nonautomation Letters

* * * * *

5.2 Marking

    [Revise 5.2 to delete ``AUTOCR'' in the last sentence.]
* * * * *

[[Page 15379]]

    [Delete 5.3, Manual Only Option. Renumber 5.4 and 5.5 as new 5.3 
and 5.4.]

5.3 Machinable Preparation

5.3.1 Machinable Bundling

    Machinable pieces are not bundled, except for the following (see 
2.3):
* * * * *
    [Delete item b. Renumber item c as new item b.]

5.3.2 Traying and Labeling

    [Replace the first sentence in 5.3.2 with new text and delete items 
a and b.
    Renumber items c through e as new items a through c and revise as 
follows:]
    Instead of preparing overflow AADC trays with fewer than 150 
pieces, mailers may include these pieces in mixed AADC trays. 
Preparation sequence, tray size, and labeling:
    a. Origin/entry 3-digit (optional, no minimum); labeling: * * *
* * * * *
    b. AADC (required); 150-piece minimum (overflow allowed); labeling: 
* * *
* * * * *
    c. Mixed AADC (required); no minimum; labeling: * * *
* * * * *

5.4 Nonmachinable Preparation

5.4.1 Nonmachinable Bundling

    [Revise renumbered 5.4.1 to delete the fourth sentence, about 
manual processing, as follows:]
    Except as provided in 2.5, Exception to Bundle Preparation--Full 
Single-Sort-Level Trays, bundling is required before traying. A bundle 
must be prepared when the quantity of addressed pieces for a required 
presort level reaches a minimum of 10 pieces. Smaller volumes are not 
permitted except for mixed ADC bundles. Preparation sequence, bundle 
size, and labeling:
* * * * *

5.4.2 Traying and Labeling

    [Delete item c and renumber items d and e as new items c and d. 
Revise introductory text and renumbered items a through c as follows:]
    Overflow trays are not allowed. Preparation sequence, tray size, 
and labeling:
    a. 5-digit (required); 150-piece minimum; labeling: * * *
* * * * *
    b. 3-digit (required); 150-piece minimum (mailers may prepare 3-
digit origin/entry trays with as few as 10 pieces per tray); labeling: 
* * *
* * * * *
    c. ADC (required); 150-piece minimum; labeling: * * *
* * * * *

6.0 Preparing Enhanced Carrier Route Letters

6.1 Basic Standards

    [Revise 6.1 to delete ``(Enhanced Carrier Route automation rate 
mailings must be prepared under 7.0)'' in the introductory text as 
follows:]
    All mailings and all pieces in each mailing at Enhanced Carrier 
Route Standard Mail and Nonprofit Enhanced Carrier Route Standard Mail 
nonautomation rates are subject to specific preparation standards in 
6.0 and to these general standards:
* * * * *
    [Revise 6.2 by adding a sentence at the end to require carrier 
route information lines on certain pieces mailed at ECR rates as 
follows:]

6.2 Marking

    Subject to the marking standards in 202.3.0, Placement and Content 
of Mail Markings, and 202.4.0, Endorsement Placement, Enhanced Carrier 
Route Standard Mail pieces must be marked ``Presorted Standard'' (or 
``PRSRT STD''), and Nonprofit Enhanced Carrier Route Standard Mail 
pieces must be marked ``Nonprofit Organization'' (or ``Nonprofit Org.'' 
or ``Nonprofit''). All pieces also must be marked ``ECRLOT'' for basic 
rate, ``ECRWSH'' for high density rate, or ``ECRWSS'' for saturation 
rate. Pieces in carrier route mailings under 6.7 must bear carrier 
route information lines under 708.8.0.
* * * * *

6.4 Carrier Route Bundle Preparation

    Prepare carrier route bundles of letter-size mail as follows:
    [Revise item a as follows:]
    a. Mailers must prepare only carrier route bundles, except under 
6.7. Carrier route bundles are not permitted in full carrier route 
trays, except for card-size pieces.
* * * * *
    [Revise heading and text of 6.6 as follows:]

6.6 General Traying and Labeling

    For all ECR letters over 3 ounces and all ECR letters that are not 
automation-compatible or delivery-point barcoded, prepare trays as 
explained below. Also prepare trays as explained below when a mailing 
contains some pieces over 3 ounces and some pieces up to 3 ounces. For 
ECR automation-compatible letters that are delivery-point barcoded and 
weigh up to 3 ounces, prepare trays under 6.7. Preparation sequence, 
tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0, Tray 
Labels, for overseas military mail).
    2. Line 2: (a) Saturation: ``STD LTR MACH WSS,'' followed by route 
type and number; (b) High density: ``STD LTR MACH WSH,'' followed by 
route type and number; (c) Basic: ``STD LTR MACH LOT,'' followed by 
route type and number.
    b. 5-digit carrier routes: required if full tray, optional with 
minimum one 10-piece bundle.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0, Tray 
Labels, for overseas military mail).
    2. Line 2: ``STD LTR 5D CR-RT MACH.''
    c. 3-digit carrier routes: optional with minimum one 10-piece 
bundle for each of two or more 5-digit areas.
    1. Line 1: city, state, and 3-digit ZIP Code prefix shown in L002, 
Column A, that corresponds to 3-digit ZIP Code prefix on mail.
    2. Line 2: ``STD LTR 3D CR-RT MACH.''
    d. For trays containing barcoded automation-compatible letter-size 
pieces over 3 ounces or nonmachinable letter-size pieces, use these 
Line 2 label designations in place of ``MACH'':
    1. Trays containing barcoded, automation-compatible pieces over 3 
ounces: ``BC.''
    2. Trays containing nonmachinable pieces: ``MAN.''
    3. Trays containing simplified address pieces: ``MAN.''
* * * * *
    [Delete 6.7 and replace with new 6.7 as follows:]

6.7 Traying and Labeling for Automation-Compatible ECR Letters

    Mailers must make full carrier route and 5-digit carrier routes 
trays, when possible, for automation-compatible, delivery-point 
barcoded ECR letters that weigh up to 3 ounces. Except for card-size 
pieces, pieces must not be bundled. Group pieces together by carrier 
route in 5-digit and 3-digit carrier routes trays. If pieces for one 
carrier route do not result in a full tray, mailers must combine pieces 
from at least two routes to make full 5-digit carrier routes trays, 
grouping pieces together by carrier route. If pieces for multiple 
carrier routes do not result in a full 5-digit tray, mailers must 
combine pieces from at least two 5-digit ZIP Codes to make 3-digit 
carrier routes trays, grouping pieces together by carrier route. If 
pieces fill more than one tray but do not fill an additional tray,

[[Page 15380]]

mailers must place excess pieces in a tray at the next sortation level. 
Preparation sequence, tray size, and labeling:
    a. Carrier route: required; full trays only, no overflow.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: for saturation, ``STD LTR BC WSS,'' followed by route 
type and number; for high-density, ``STD LTR BC WSH,'' followed by 
route type and number; for basic, ``STD LTR BC LOT,'' followed by route 
type and number.
    b. 5-digit carrier routes: required; full trays only, no overflow, 
no bundling.
    1. Line 1: city, state, and 5-digit ZIP Code on mail (see 4.0 for 
overseas military mail).
    2. Line 2: ``STD LTR 5D CR-RT BC.''
    c. 3-digit carrier routes: required; bundling required in less-
than-full trays.
    1. Line 1: city, state, and 3-digit ZIP Code prefix shown in L002, 
Column A, that corresponds to 3-digit ZIP Code prefix on mail.
    2. Line 2: ``STD LTR 3D CR-RT BC.''
* * * * *

7.0 Preparing Automation Rate Letters

* * * * *

7.2 Mailings

    [Restructure 7.2 to delete the introductory text and item b. Make 
item a the new text as follows:]
    All pieces in a mailing must meet the standards in 201.1.0, 
Physical Standards for Machinable Letters and Cards, and 201.3.0, 
Physical Standards for Automation Letters and Cards, and must be sorted 
together to the finest extent required for the rate claimed. The 
definitions of a mailing and permissible combinations are in 1.0, 
General Information for Mail Preparation.

7.3 Marking

    [Revise 7.3 to delete references to ``AUTOCR'' as follows:]
    All Standard Mail automation rate pieces must be marked under 
202.3.0, Placement and Content of Mail Markings. Pieces claimed at an 
automation rate must bear the appropriate class marking and ``AUTO,'' 
except as provided in 202.3.0. Pieces not claimed at an automation rate 
must not bear ``AUTO'' unless First-Class single-piece rate postage is 
affixed or a corrective single-piece rate marking (``Single-Piece'' or 
``SNGLP'') is applied.

7.4 General Preparation

    [Revise 7.4 to delete carrier route references as follows:]
    Grouping, bundling, and labeling are not generally required or 
permitted, except bundling is required in any mailing consisting 
entirely of card-size pieces and for pieces in overflow and less-than-
full trays, and grouping is required under 7.5.
    [Delete 7.5 and 7.6, about carrier route trays and pieces. Renumber 
7.7 through 7.9 as new 7.5 through 7.7.]

7.5 Tray Preparation

    [Revise renumbered 7.5 to add information about overflow trays as 
follows:]
    Instead of preparing overflow trays with fewer than 150 pieces, 
mailers may include these pieces in the next tray level when a tray of 
150 or more pieces can be made. Mailers must note these trays on 
standardized documentation (see 708.1.2). Pieces that are placed in the 
next tray level must be grouped by destination and placed in the front 
of that tray. Mailers may use this option selectively for 3-digit and 
AADC ZIP Codes. This option does not apply to origin/entry 3-digit/
scheme trays. Preparation sequence, tray size, and Line 1 labeling:
    [Delete items a through c, about carrier routes trays. Renumber 
items d through g as new items a through d. Revise renumbered item a to 
require 5-digit/scheme trays for rate as follows:]
    a. 5-digit/scheme (see 1.4e): optional, but required for 5-digit 
rate (150-piece minimum); overflow allowed; for Line 1, label as 
follows:
    1. For 5-digit scheme trays, use destination shown in the current 
USPS City State Product.
    2. For 5-digit trays, use city, state, and 5-digit ZIP Code 
destination on pieces (see 4.0 for overseas military mail).
    [Revise renumbered item b to make origin 3-digit trays optional as 
follows:]
    b. 3-digit/scheme; required (150-piece minimum except no minimum 
for optional origin/entry 3-digit/scheme(s)); overflow allowed; for 
Line 1, use L002, Column B.
* * * * *

7.6 Tray Line 2

    Line 2: ``STD LTR'' and:
    [Delete items a through c, about carrier routes. Renumber items d 
through i as new items a through f and revise as follows:]
    a. 5-digit scheme: ``BC 5D SCHEME.''
    b. 5-digit: ``5D BC.''
    c. 3-digit scheme: ``BC 3D SCHEME'' and, if applicable, as shown in 
L002, Column B, followed by the letter ``A,'' ``B,'' or ``C.''
    d. 3-digit: ``3D BC.''
    e. AADC: ``AADC BC.''
    f. Mixed AADC: ``BC WKG.''
* * * * *

246 Enter and Deposit

* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

4.2 Eligibility

    [Revise 4.2 to allow pieces placed in AADC trays in lieu of in 3-
digit trays under 245.7.5 to be eligible for DSCF rates as follows:]
    Pieces in a mailing that meet the standards in 2.0 and 4.0 are 
eligible for DSCF rates under either of the following conditions:
    a. When deposited at a DSCF (or USPS-designated facility), 
addressed for delivery within that SCF's service area, and:
    1. Placed in a tray labeled to that DSCF.
    2. Placed in a tray labeled to the DADC that includes that DSCF 
under the preparation option in 245.7.5,
    3. Placed in a tray labeled to a postal facility within that DSCF's 
service area.
    b. When the pieces are deposited at a DDU, addressed for delivery 
within that facility's service area, and prepared with simplified 
addresses under 602.3.2 or when mailers hold a mailing permit at the 
entry office and deposit only one mailing (of fewer than 2,500 pieces) 
per day.
* * * * *

5.0 Destination Delivery Unit (DDU) Entry

* * * * *

5.2 Eligibility

    [Revise 5.2 to reorganize text and eliminate the DDU entry discount 
as follows:]
    Letter-size mailpieces are not eligible for a destination delivery 
unit (DDU) discount. Mailers may not pay ECR flat-size rates and claim 
the DDU discount for letter-size pieces. Mailers may deposit letter-
size pieces that meet the standards in 2.0 and 5.0 at a DDU when:
    a. Those pieces are addressed for delivery within that facility's 
service area (enhanced carrier route only).
    b. The pieces are placed in properly prepared and labeled carrier 
route trays or 5-digit carrier routes trays, or on pallets under 
705.8.0.
    c. The pieces are eligible for and claimed at a carrier route rate.
* * * * *

[[Page 15381]]

300 Discount Mail: Flats

301 Physical Standards

1.0 Physical Standards for Flats

1.1 General Definition of Flat-Size Mail

    Flat-size mail other than that in 3.0, Physical Standards for 
Automation Flats, is:
* * * * *
    [Add an exception for Periodicals mail in item b as follows:]
    b. Not more than 15 inches long, or more than 12 inches high, or 
greater than \3/4\ inch thick, except for Periodicals mail under 
707.25.3.
    [Replace items c and d with new items c and d as follows:]
    c. Rectangular.
    d. Other size or weight standards may apply to mail claimed at 
certain rates, mail addressed to certain APOs and FPOs, and mail sent 
by the Department of State to U.S. government personnel abroad.

1.2. Length and Height of Flats

    [Revise 1.2 to change the determination of the length and height of 
flats as follows:]
    The length of a flat-size mailpiece is the longest dimension. The 
height is the dimension perpendicular to the length.
    [Insert new 1.3 through 1.6 as follows:]

1.3 Shape

    Each flat-size piece must be rectangular. See 2.0 for additional 
standards by class of mail.

1.4 Minimum Flexibility for Flat-Size Pieces

    Flat-size pieces must be flexible. Boxes and box-like pieces--with 
or without hinges, gaps, or breaks that allow the piece to bend--are 
not flats. Tight envelopes that are completely filled to form box-like 
pieces are not flats. Test flats as follows:
    a. All flats:
    1. Place the piece with the length parallel to the edge of a flat 
surface and extend the piece halfway off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's length, exerting steady pressure.
    3. The piece is not flexible if it cannot bend at least 1 inch 
vertically without being damaged.
    4. The piece is flexible if it can bend at least 1 inch vertically 
without being damaged and it does not contain a rigid insert. No 
further testing is necessary.
    5. Test the piece according to 1.4b or 1.4c below if it can bend at 
least 1 inch vertically without being damaged and it contains a rigid 
insert.
    b. Flats 10 inches or longer that pass the test in 1.4a and contain 
a rigid insert:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 2 inches vertically without 
being damaged.
    c. Flats less than 10 inches long that pass the test in 1.4a and 
contain a rigid insert:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface.
    2. Press down on the piece at a point 1 inch from the outer edge, 
in the center of the piece's width, exerting steady pressure.
    3. Turn the piece around and repeat steps 1 and 2. The piece is 
flexible if both ends can bend at least 1 inch vertically without being 
damaged.

1.5 Uniform Thickness

    Flat-size mailpieces must be uniformly thick so that any bumps, 
protrusions, or other irregularities do not cause more than \1/4\-inch 
variance in thickness. Exclude the outside edges of a mailpiece (1 inch 
from the edge) when determining variance in thickness. Mailers must 
secure nonpaper contents to prevent shifting of more than 2 inches 
within the mailpiece.

1.6 Flat-Size Pieces Not Eligible for Flat-Size Rates

    Mailpieces that do not meet the standards in 1.3 through 1.5 are 
not eligible for flat-size rates and must be charged the applicable 
rates as follows:
    a. First-Class Mail--parcel rates.
    b. Standard Mail--Not Flat-Machinable or parcel rates.
    c. Bound Printed Matter--parcel rates.
    [Revise the heading of 2.0 to delete ``Presorted.'']

2.0 Physical Standards for Nonautomation Flats

2.1 First-Class Mail

    [Revise 2.1 as follows:]
    These additional standards apply to First-Class Mail flat-size 
pieces:
    a. First-Class Mail cannot exceed 13 ounces. First-Class Mail 
weighing more than 13 ounces is Priority Mail.
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and must be charged the applicable 
parcel rate.

2.2 Standard Mail

2.2.1 Basic Physical Standards

    [Revise the introductory text as follows:]
    These additional standards apply to Standard Mail flat-size pieces:
* * * * *
    [Delete item b. Insert new item b as follows:]
    b. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels or Not Flat-Machinable pieces and must 
be charged the parcel or Not Flat-Machinable rates (see 401).
    [Delete Exhibit 2.2.1b, Maximum Dimensions for Standard Mail 
Flats.]
* * * * *

2.3 Bound Printed Matter

2.3.1 General Standards

    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    These additional standards apply to Bound Printed Matter:
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels and must be charged the applicable 
parcel rates.
* * * * *

2.4 Media Mail

2.4.1 General Standards

    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    These additional standards apply to Media Mail:
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels.
* * * * *

2.5 Library Mail

2.5.1 General Standards

    These additional standards apply to Library Mail:
    [Delete item c. Renumber items a and b as new items b and c. Revise 
the introductory text and insert new item a as follows:]
    a. Flat-size pieces that do not meet the standards in 1.3 through 
1.5 must be prepared as parcels.
* * * * *

3.0 Physical Standards for Automation Flats

3.1 Basic Standards for Automation Flats

    [Revise 3.1 as follows:]
    Flat-size pieces claimed at automation rates must meet the 
standards in 3.0, or

[[Page 15382]]

707.25.3 for Periodicals mail, and the eligibility standards for the 
class of mail and rate claimed. Pieces prepared with polywrap film must 
meet the standards in 3.3.
    [Delete 3.2 and renumber 3.3 through 3.9 as new 3.2 through 3.8. 
Revise heading of renumbered 3.2 as follows:]

3.2 Additional Criteria for Automation Flats

    [Revise the heading and text of renumbered 3.2.1 as follows:]

3.2.1 Address Placement on Folded Pieces

    Mailers must design folded pieces so that the address is in view 
when the final folded edge is at the bottom of the piece and any 
intermediate bound or folded edge is to the right.

3.2.2 Shape and Size

    [Revise 3.2.2 to specify the minimum and maximum dimensions as 
follows:]
    Each flat-size piece must be rectangular. The following minimum and 
maximum dimensions apply to First-Class Mail, Standard Mail, 
Periodicals (except under 707.25.3), and Bound Printed Matter pieces:
    a. Minimum height is 5 inches. Maximum height is 12 inches.
    b. Minimum length is 6 inches. Maximum length is 15 inches.
    c. For bound or folded pieces, the edge perpendicular to the bound 
or folded edge may not exceed 12 inches.
    d. Minimum thickness is 0.009 inch. Maximum thickness is 0.75 inch.
* * * * *
    [Revise heading and text of renumbered 3.2.4, and delete renumbered 
Exhibit 3.2.4a, to add new standards for deflection as follows:]

3.2.4 Maximum Deflection for Automation Flat-Size Pieces

    An automation flat-size mailpiece must be flexible (see 1.4) and 
must meet maximum deflection standards. Test deflection as follows:
    a. For pieces 10 inches or longer:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece 5 inches off the surface. Turn the 
piece around and repeat the process.
    2. The piece is automation-compatible if it does not droop more 
than 4 inches vertically.
    b. For pieces less than 10 inches long:
    1. Place the piece with the length perpendicular to the edge of a 
flat surface and extend the piece one-half of its length off the 
surface. Turn the piece around and repeat the process.
    2. The piece is automation-compatible if it does not droop more 
than 1 inch less than the extended length. For example, a piece 8 
inches long would extend 4 inches off a flat surface. It must not droop 
more than 3 inches vertically.
    c. For pieces with bound or folded edges, perform the test in 
3.2.4a or 3.2.4b above by placing the bound or final folded edge 
perpendicular to the edge of the flat surface.
* * * * *
    [Delete renumbered 3.3, Criteria for UFSM 1000 Flats, to remove the 
standards for UFSM 1000 flats. Further renumber 3.4 through 3.8 as new 
3.3 through 3.7.]

3.3 Polywrap Coverings

    [Revise heading and text of renumbered 3.3.1 as follows:]

3.3.1 Polywrap Films and Similar Coverings

    When mailers use polywrap film or similar material to enclose flat-
size mailpieces claimed at automation rates, the material must meet the 
standards in 3.3. Film approved for use under 3.3.5 must meet the 
specifications in Exhibit 3.3.1 as follows:
    a. Films or similar coverings must meet all six properties in 
Exhibit 3.3.1.
    b. If the address label is affixed to the outside of the polywrap, 
the haze property (property 2) does not apply.
* * * * *

3.3.2 Wrap Direction and Seam Placement

    Wrap direction, seam direction, and seam placement must follow 
these standards:
    [Revise item a and the first sentence in item b as follows:]
    a. The wrap direction must be around the longer axis of the 
mailpiece, with the seam parallel to that axis. The longer axis is 
always parallel to the length of the mailpiece.
    b. The preferred seam placement is on the nonaddressed side of the 
mailpiece. If the seam is placed on the addressed side, the seam must 
not cover any part of the delivery address and barcode, postage area, 
or any required markings or endorsements. Regardless of seam placement, 
the polywrap over the address area must be a smooth surface to avoid 
interference with address and barcode readability.

3.3.3 Overhang

    [Revise renumbered 3.3.3 to delete item b and restructure the text 
as follows:]
    For purposes of the polywrap standards for overhang (selvage) only, 
the top edge of the mailpiece is one of the two physically longer edges 
of the piece, regardless of address orientation and whether bound or 
unbound. Any polywrap overhang (selvage) around the four edges of the 
mailpiece (top, bottom, and left and right sides) must meet these 
standards:
    a. When the mailpiece contents are totally positioned at the bottom 
of the polywrap, the overhang must not be more than 0.5 inch at the top 
of the mailpiece.
    b. When the mailpiece contents are totally positioned to the left 
or to the right side of the polywrap, the overhang must not be more 
than 1.5 inches on the opposite side.
    c. The polywrap covering must not be so tight that it bends the 
mailpiece.
* * * * *

3.6 Uniformity and Exterior Format

3.6.1 General

    [Revise renumbered 3.6.1 to add a reference to 1.5 in the first 
sentence as follows:]
    A flat-size mailpiece prepared and claimed at automation rates must 
be uniformly thick (see 1.5). Each flat-size mailpiece must have a 
smooth and regular shape and be free of creases, folds, tears, or other 
irregularities not compatible with automation equipment. The exterior 
surface must not have protuberances caused by prohibited closures; 
attachments (except as provided below); irregularly shaped or 
distributed contents; or untrimmed excess material from the envelope, 
wrapper, or sleeve.
* * * * *
    [Delete renumbered 3.6.3 (this information was relocated to 1.5). 
Renumber 3.6.4 as new 3.6.3.]

302 Elements on the Face of a Mailpiece

* * * * *

2.0 Placement and Content of Mail Markings

2.1 First-Class Mail and Standard Mail Markings

2.1.1 Placement

    Mailpieces must be marked under the corresponding standards to show 
the class of service and/or rate paid:
* * * * *
    [Revise items b and b3 as follows:]
    b. Other Markings. Mailers may place rate-specific markings as 
follows:
* * * * *
    3. If preceded by two asterisks (**), the ``AUTO,'' ``PRESORTED'' 
(or ``PRSRT''), ``CUSTOMIZED MARKETMAIL'' (or ``CUST MKTMAIL'' or 
``CMM''), or ``Single-Piece'' (or ``SNGLP'') markings also may be 
placed on the line directly above or two lines

[[Page 15383]]

above the address in a mailer keyline or a manifest keyline, or it may 
be placed above the address and below the postage in an MLOCR ink-jet 
printed date correction/meter drop shipment line.
* * * * *

2.1.2 Exceptions to Markings

    Exceptions are as follows:
* * * * *
    [Delete ``AUTOCR'' in item b as follows:]
    b. Manifest Mailings. The basic marking must appear in the postage 
area on each piece. The two-letter rate category code required in the 
keyline on manifest mailing pieces prepared under 705.2.0 meets the 
requirement for other rate markings.
* * * * *

4.0 Barcode Placement

* * * * *

4.2 Applying One Barcode

    [Revise 4.2 to delete the second sentence, about UFSM 1000 
mailpieces, as follows:]
    On any flat-size mailpiece claimed at an automation rate, the 
barcode may be anywhere on the address side as long as it is at least 
1/8 inch from any edge of the piece. The portion of the surface of the 
piece on which the barcode is printed must meet the barcode dimensions 
and spacing requirements in 708.4.2.5, and the reflectance standards in 
708.4.4. Address block barcodes are subject to the standards in 4.6a. 
through 4.6e.
* * * * *

330 Discount Flats: First-Class Mail

333 Rates and Eligibility

1.0 Rates and Fees for First-Class Mail

1.1 Rate Application

    [Revise 1.1 as follows:]
    Postage is based on the flat-size rate that applies to the weight 
of each addressed piece.
* * * * *
    [Delete 1.9, Nonmachinable Surcharge, and renumber 1.10 through 
1.12 as new 1.9 through 1.11.]
* * * * *

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Flats

* * * * *
    [Revise the heading and text of 4.3 as follows:]

4.3 Nonmachinable Flat-Size Pieces

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as flats under 335.5.0 and must be charged the 
applicable parcel-size rates.

5.0 Additional Eligibility Standards for Automation Rate First-Class 
Mail Flats

* * * * *
    [Delete 5.2 and renumber 5.3 through 5.6 as new 5.2 through 5.5.]
* * * * *

334 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Flats

* * * * *

2.2 Affixed Postage for Presorted First-Class Mail

    Unless permitted by other standards or by Business Mailer Support, 
USPS Headquarters, when precanceled postage or meter stamps are used as 
the postage payment method, only one payment method may be used in a 
mailing and each piece must bear postage under one of these conditions:
* * * * *
    [Revise item b to remove ``nonmachinable surcharge'' as follows:]
    b. A precanceled stamp or the full postage at the lowest First-
Class Mail 1-ounce rate applicable to the mailing job, and full postage 
on metered pieces for additional ounce(s) or extra services.
* * * * *

340 Discount Flats: Standard Mail

343 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Flats

* * * * *

3.2 Defining Characteristics

    [Revise heading and text of 3.2.1 as follows:]

3.2.1 Weight, Shape, Flexibility, and Uniform Thickness

    All Standard Mail pieces must weigh less than 16 ounces. Flat-size 
pieces that do not meet the standards in 301.1.3 through 301.1.5 must 
be prepared as parcels or Not Flat-Machinable pieces and must be 
charged parcel or Not Flat-Machinable rates (see 401).
* * * * *

4.0 Rate Eligibility for Standard Mail

* * * * *

4.2 Minimum Per Piece Rates

    The minimum per piece rates (the minimum postage that must be paid 
for each piece) apply as follows:
* * * * *
    [Revise introductory text in item b and item b1 as follows:]
    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a letter based on whether the piece meets the letter-
size standard in 201.1.0, without regard to placement of the address on 
the piece, except under these conditions:
    1. If the piece meets both the definition of a letter in 201.1.1.1 
and the definition of an automation flat in 301.3.0, the piece may be 
prepared and entered at an automation flat rate.
    [Revise item b2 to change the rates for Customized MarketMail to 
the NFM rates as follows:]
    2. Pieces mailed as Customized MarketMail under 705.1.0 must be 
charged Regular or Nonprofit Standard Mail 5-digit nonentry rates for 
Not Flat-Machinable pieces and must not exceed 3.3 ounces.
* * * * *
    [Revise heading and text of 4.4 as follows:]

4.4 Shape, Flexibility, and Uniform Thickness

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels or Not Flat-Machinable pieces and 
must be charged parcel or Not Flat-Machinable rates (see 401).
    [Revise heading of 5.0 as follows:]

5.0 Additional Eligibility Standards for Nonautomation Standard Mail 
Flats

* * * * *
    [Replace 5.3 and 5.4 with new 5.3 through 5.6 as follows:]

5.3 5-Digit Rates for Flats

    The 5-digit rate applies to flat-size pieces:
    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable; properly placed in a 5-digit/scheme sack 
containing at least 125 pieces or 15 pounds of pieces.
    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 5-digit/scheme bundle of 10 or more pieces, or 15 or more pieces, as 
applicable.
    c. In a 5-digit bundle of 10 or more pieces, or 15 or more pieces, 
as applicable; properly placed in a merged 5-digit/scheme or 5-digit 
sack under 705.10.0.

5.4 3-Digit Rates for Flats

    The 3-digit rate applies to flat-size pieces:

[[Page 15384]]

    a. In a 5-digit/scheme bundle of 10 or more pieces, or 15 or more 
pieces, as applicable, or in a 3-digit/scheme bundle of 10 or more 
pieces; properly placed in a 3-digit sack of at least 125 pieces or 15 
pounds of pieces.
    b. When palletized under 705.8.0 and 705.10.0 through 705.13.0, in 
a 3-digit/scheme bundle of 10 or more pieces.

5.5 ADC Rates for Flats

    ADC rates apply to flat-size pieces:
    a. In a 5-digit/scheme, 3-digit/scheme, or ADC bundle of 10 or more 
pieces properly placed in an ADC sack of at least 125 pieces or 15 
pounds of pieces.
    b. In an optional 3-digit/scheme origin/entry sack.
    c. When palletized under 705.8.0 and 705.10 through 705.13, in an 
ADC bundle of 10 or more pieces; properly placed on an ADC pallet.

5.6 Mixed ADC Rates for Flats

    Mixed ADC rates apply to flat-size pieces in bundles that do not 
qualify for 5-digit, 3-digit, or ADC rates; placed in mixed ADC sacks 
or on ASF, BMC, or mixed BMC pallets under 705.8.0.
* * * * *

7.0 Additional Eligibility Standards for Automation Rate Standard Mail 
Flats

* * * * *

7.2 Rate Application

    [Revise 7.2 as follows:]
    Automation rates apply to each piece properly sorted into 
qualifying groups:
    a. The 5-digit rate applies to flat-size pieces in a 5-digit/scheme 
bundle of 10 or more pieces, or 15 or more pieces, as applicable.
    b. The 3-digit rate applies to flat-size pieces in a 3-digit/scheme 
bundle of 10 or more pieces.
    c. The ADC rate applies to flat-size pieces in an ADC bundle of 10 
or more pieces.
    d. The mixed ADC rate applies to flat-size pieces in mixed ADC 
bundles (no minimum).
* * * * *

345 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Revise items c and k as follows:]
    c. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces is one of the 5-digit ZIP Code areas 
processed by the USPS as a single scheme, as shown in L007.
* * * * *
    k. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address begins with one of the 3-digit prefixes processed by the USPS 
as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item f as follows:]
    f. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats, 
then prepare all possible 5-digit bundles and sacks. The 5-digit ZIP 
Codes in each scheme are treated as a single presort destination 
subject to a single minimum volume, with no further separation 
required. Bundles prepared for a 5-digit scheme destination that 
contain pieces for only one of the schemed 5-digit ZIP Codes are still 
considered 5-digit scheme sorted and are labeled accordingly. Label 
mailpieces using an optional endorsement line (OEL) under 708.7.0. 
Place bundles in appropriate containers using the OEL ``label to'' 5-
digit ZIP Code.
* * * * *
    [Revise item h by replacing ``Presorted'' with ``nonautomation'' in 
the first sentence.]
* * * * *
    [Revise item n as follows:]
    n. A 3-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 3-digit scheme bundles for 
those 3-digit ZIP Codes identified in L008. When standards require 3-
digit/scheme sort, mailers must prepare all possible 3-digit scheme 
bundles of flats, then prepare all possible 3-digit bundles. The 3-
digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation by 3-digit ZIP Code required. Bundles prepared for a 3-digit 
scheme destination that contain pieces for only one of the schemed 3-
digit ZIP Codes are still considered 3-digit scheme sorted and are 
labeled accordingly. Label mailpieces using an OEL under 708.7.0. Place 
3-digit scheme bundles in 3-digit through mixed ADC containers, as 
applicable, using the OEL ``label to'' 3-digit ZIP Code.
* * * * *
    [Revise 5.0 to change ``presorted'' flats to ``nonautomation'' 
flats throughout.]

5.0 Preparing Nonautomation Flats

5.1 Basic Standards

    All mailings and all pieces in each mailing at Regular Standard 
Mail and Nonprofit Standard Mail nonautomation rates are subject to 
specific preparation standards in 5.2 through 5.9 and to these general 
standards (automation rate mailings must be prepared under 7.0):
    [Revise item a as follows:]
    a. All pieces must be in the flat-size processing category.
    [Revise item b to delete ``AUTOCR.'']
* * * * *

5.3 Bundling and Labeling

    [Add a new first sentence to 5.3 and revise items a and b as 
follows:]
    Mailings consisting entirely of pieces meeting the automation-
compatibility criteria in 301.3.0 must be prepared in 5-digit scheme 
bundles for those 5-digit ZIP Codes identified in L007 and in 3-digit 
scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence, bundle size, and labeling:
    a. 5-digit/scheme (required), see definition in 1.4f:
    1. For mailings containing only pieces weighing 5 ounces (0.3125 
pound) or less: 15-piece minimum; red Label 5 or OEL.
    2. For mailings containing any pieces weighing more than 5 ounces 
(0.3125 pound): 10-piece minimum; red Label 5 or OEL.
    b. 3-digit/scheme (required), see definition in 1.4n; 10-piece 
minimum; green Label 3 or OEL.
* * * * *

5.7 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (required); scheme sort required, only for pieces 
meeting the automation-compatibility criteria in 301.3.0, see 
definition in 1.4f; 125-piece or 15-pound minimum; labeling:
    1. Line 1: For 5-digit scheme sacks use L007, Column B. For 5-digit 
sacks, use city, state, and 5-digit ZIP Code destination on pieces. 
(See 4.2 for overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD FLT 5D SCH NON BC.'' For 
5-digit sacks, ``STD FLTS 5D NON BC.''
* * * * *

[[Page 15385]]

    [Revise item c as follows:]
    c. Origin/entry 3-digits(s) (optional); one-bundle minimum; 
labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``STD FLTS 3D NON BC.''
* * * * *

7.0 Preparing Automation Rate Flats

* * * * *
    [Delete 7.4. Renumber 7.5 through 7.9 as new 7.4 through 7.8.]

7.4 Standard Mail Bundle Preparation

7.4.1 Bundling and Labeling

    Preparation sequence, bundle size, and labeling:
    [Revise item a to require 5-digit/scheme preparation as follows:]
    a. 5-digit/scheme (required); see definition in 1.4f:
    1. For mailings containing only pieces weighing 5 ounces (0.3125 
pound) or less: 15-piece minimum; OEL required.
    2. For mailings containing any pieces weighing more than 5 ounces 
(0.3125 pound): 10-piece minimum; OEL required.
    [Delete item b. Renumber item c as new item b and revise to require 
3-digit/scheme preparation as follows:]
    b. 3-digit/scheme (required); see definition in 1.4n; 10-piece 
minimum; OEL required.
    [Delete item d. Renumber items e and f as new items c and d.]
* * * * *
    [Delete renumbered 7.4.2. Renumber 7.4.3 and 7.4.4 as new 7.4.2 and 
7.4.3.]

7.4.3 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (required); see definition in 1.4f; 125-piece or 
15-pound minimum, labeling:
    1. Line 1: For 5-digit scheme sacks use L007, Column B. For 5-digit 
sacks use city, state, and 5-digit ZIP Code on mail (see 4.2 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD FLTS 5D SCH BC.'' For 5-
digit sacks, ``STD FLTS 5D BC.''
    [Delete item b. Renumber items c though f as new items b through 
e.]
* * * * *
    [Delete 7.6. Renumber 7.7 through 7.9 as new 7.6 through 7.8. 
Revise renumbered 7.6 through 7.8 by replacing ``presorted'' with 
``nonautomation'' throughout.]
* * * * *

7.7 Exception `` Automation and Nonautomation Pieces on Pallets

    [Replace ``nonletter'' with ``flat-size'' throughout renumbered 
7.7.]
* * * * *

360 Discount Flats: Bound Printed Matter

    [Incorporate the standards for Bound Printed Matter in 160 into 
360. Make revisions throughout to change single-piece Bound Printed 
Matter to ``nonpresorted'' Bound Printed Matter and make the following 
additional changes:]

363 Rates and Eligibility

1.0 Rates and Fees for Bound Printed Matter

* * * * *
    [Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Nonpresorted Bound Printed Matter Rates

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be charged the applicable parcel rate based on weight and 
zone.
    [Revise the heading of renumbered 1.4 as follows:]

1.4 Discount Bound Printed Matter Rates

* * * * *
    [Insert new 1.4.3 as follows:]

1.4.3 Shape, Flexibility, and Thickness

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels and must be charged the applicable 
parcel rate based on weight and zone.
* * * * *

365 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Revise items c and h as follows:]
    c. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces is one of the 5-digit ZIP Code areas 
processed by the USPS as a single scheme, as shown in L007.
* * * * *
    h. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address begins with one of the 3-digit prefixes processed by the USPS 
as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item c for 5-digit scheme sort as follows:]
    c. A 5-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 5-digit scheme bundles for 
those 5-digit ZIP Codes identified in L007 and 5-digit bundles for 
other ZIP Codes. When standards require 5-digit/scheme sort, mailers 
must prepare all possible 5-digit scheme bundles and sacks of flats 
before preparing 5-digit bundles and sacks. The 5-digit ZIP Codes in 
each scheme are treated as a single presort destination subject to a 
single minimum volume, with no further separation required. Bundles 
prepared for a 5-digit scheme destination that contain pieces for only 
one of the schemed 5-digit ZIP Codes are still considered 5-digit 
scheme sorted and are labeled accordingly. Label mailpieces using an 
OEL under 708.7.0. Place bundles in appropriate containers using the 
OEL ``label to'' 5-digit ZIP Code.
* * * * *
    [Revise item g for 3-digit scheme sort as follows:]
    g. A 3-digit scheme sort for flats meeting the automation-
compatibility standards in 301.3.0 yields 3-digit scheme bundles for 
those 3-digit ZIP Codes identified in L008. When standards require 3-
digit/scheme sort, mailers must prepare all possible 3-digit scheme 
bundles of flats before preparing 3-digit bundles. The 3-digit ZIP 
Codes in each scheme are treated as a single presort destination 
subject to a single minimum volume, with no further separation by 3-
digit ZIP Code required. Bundles prepared for a 3-digit scheme 
destination that contain pieces for only one of the schemed 3-digit ZIP 
Codes are still considered 3-digit scheme sorted and are labeled 
accordingly. Mailpieces must be labeled using an OEL under 708.7.0. 
Three-digit scheme bundles are placed in 3-digit through mixed ADC 
containers, as applicable, using the OEL ``label to'' 3-digit ZIP Code.
* * * * *

5.0 Preparing Presorted Flats

* * * * *

5.2 Bundling

* * * * *

5.2.2 Bundling and Labeling

    [Add a new first sentence to 5.2.2 as follows:]

[[Page 15386]]

    For mailings consisting entirely of pieces meeting the automation-
compatibility criteria in 301.3.0, pieces must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence and labeling:
    [Revise item a to require 5-digit schemes as follows:]
    a. 5-digit/scheme (required); red Label 5 or OEL. See definition in 
1.4e.
    [Revise item b to require 3-digit schemes as follows:]
    b. 3-digit/scheme (required); green Label 3 or OEL. See definition 
in 1.4g.

5.3 Sacking

* * * * *

5.3.5 Sacking and Labeling

    Preparation sequence and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (required); see 1.4e; scheme sort required, only 
for pieces meeting the automation-compatibility criteria in 301.3.0; 
minimum 20 addressed pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC FLT 5D SCH NBC.'' For 
5-digit sacks, ``PSVC FLTS 5D NON BC.''
* * * * *

7.0 Preparing Barcoded Flats

* * * * *

7.3 Bundling

* * * * *

7.3.2 Bundle Preparation

    Bundles must be prepared and labeled in the following sequence:
    [Delete items b and d. Renumber item c as item b and items e and f 
as items c and d. Revise item a and new item b to make 5-digit and 3-
digit schemes required as follows:]
    a. 5-digit/scheme: (required); see definition in 1.4e; minimum 10 
pieces or 10 pounds, maximum weight 20 pounds; OEL required.
    b. 3-digit/scheme (required); see definition in 1.4g; minimum 10 
pieces or 10 pounds, maximum weight 20 pounds; OEL required.
* * * * *

7.3.3 Scheme Bundle Preparation

    [Revise 7.3.3 as follows:]
    See 1.4c and 1.4g for additional standards for pieces prepared in 
scheme bundles.

7.4 Sacking

7.4.1 Sack Preparation and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (see 1.4e) (required), minimum 20 addressed 
pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.2 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC FLTS 5D SCH BC.'' For 
5-digit sacks, ``PSVC FLTS 5D BC.''
    [Delete item b and renumber items c through f as new items b 
through e.]
* * * * *

366 Enter and Deposit

1.0 Presenting a Mailing

    [Revise the heading of 1.1 as follows:]

1.1 Verification and Entry--Presorted, Carrier Route, Destination 
Entry, and Barcoded Mailings

* * * * *
    [Renumber 1.2 through 1.5 as new 1.3 through 1.6. Insert new 1.2 as 
follows:]

1.2 Verification and Entry--Nonpresorted Mailings

    Nonpresorted rate Bound Printed Matter is not offered at post 
offices, branches, or stations or through Postal Service carriers, 
except under 1.2c and 1.2d. Mailers must deposit Nonpresorted Bound 
Printed Matter as follows:
    a. At the time and place specified by the postmaster at the office 
of mailing.
    b. For metered mail, at other than the licensing post office only 
as permitted under 705.18.0, Metered Mail Drop Shipment.
    c. For permit imprint mail, only at the post office where the 
permit is held (see 604.5.0).
    d. At any post office, branch, or station or with a Postal Service 
carrier, if the correct postage is applied, including postage for any 
extra service elected.
* * * * *

370 Discount Flats: Media Mail

373 Rates and Eligibility

1.0 Rates and Fees for Media Mail

* * * * *
    [Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Shape, Flexibility, and Thickness

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels.
* * * * *

375 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Renumber item b as new item c. Insert new item b for 5-digit 
scheme sort as follows:]
    b. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: The ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
ranges processed by the USPS as a single scheme, as shown in L007.
* * * * *
    [Renumber items d and f as new items e and g. Insert new item d for 
3-digit scheme sort as follows:]
    d. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: The ZIP Code in the delivery 
address on all pieces begins with one of the 3-digit ZIP Code ranges 
processed by the USPS as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Renumber items c through f as new items e through h. Insert new 
items c and d for 5-digit and 3-digit scheme sorts as follows:]
    c. A 5-digit scheme sort for flats weighing up to 20 ounces and 
meeting the automation-compatibility standards in 301.3.0 yields 5-
digit scheme bundles for those 5-digit ZIP Codes identified in L007 and 
5-digit bundles for other ZIP Codes. When standards require 5-digit/
scheme sort, mailers must prepare all possible 5-digit scheme bundles 
and sacks of flats before preparing 5-digit bundles and sacks. The 5-
digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation required. Bundles prepared for a 5-digit scheme destination 
that contain pieces for only one of the schemed 5-digit ZIP Codes are 
still considered 5-digit scheme sorted and are labeled accordingly. 
Label mailpieces using an OEL under 708.7.0. Place bundles in 
appropriate containers using the OEL ``label to'' 5-digit ZIP Code.
    d. A 3-digit scheme sort for flats weighing up to 20 ounces and 
meeting the automation-compatibility standards

[[Page 15387]]

in 301.3.0 yields 3-digit scheme bundles for those 3-digit ZIP Codes 
identified in L008. When standards require 3-digit/scheme sort, mailers 
must prepare all possible 3-digit scheme bundles of flats before 
preparing 3-digit bundles. The 3-digit ZIP Codes in each scheme are 
treated as a single presort destination subject to a single minimum 
volume, with no further separation by 3-digit ZIP Code required. 
Bundles prepared for a 3-digit scheme destination that contain pieces 
for only one of the schemed 3-digit ZIP Codes are still considered 3-
digit scheme sorted and are labeled accordingly. Mailpieces must be 
labeled using an OEL under 708.7.0. Place 3-digit scheme bundles in 3-
digit through mixed ADC containers, as applicable, using the OEL 
``label to'' 3-digit ZIP Code.
* * * * *
    [Revise heading of 5.0 as follows:]

5.0 Preparing Presorted Flats

* * * * *

5.2 Bundling

* * * * *

5.2.2 Bundling and Labeling

    [Add a new first sentence to 5.2.2 as follows:]
    For mailings consisting entirely of pieces meeting the automation-
compatibility criteria in 301.3.0, pieces must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence, bundle size, and labeling:
    [Revise items a and b to make 5-digit and 3-digit schemes required 
as follows:]
    a. 5-digit/scheme (optional, but required for 5-digit rate); red 
Label 5 or OEL. See definition in 1.4c.
    b. 3-digit/scheme (required); green Label 3 or OEL. See definition 
in 1.4d.
* * * * *

5.3 Sacking

* * * * *

5.3.2 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (optional, but required for 5-digit rate); see 
1.4c; scheme sort required, only for pieces meeting the automation-
compatibility criteria in 301.3.0; minimum 10 addressed pieces; 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC FLT 5D SCH NBC.'' For 
5-digit sacks, ``PSVC FLT 5D NBC.''
* * * * *

380 Discount Flats: Library Mail

383 Rates and Eligibility

1.0 Rates and Fees for Library Mail

* * * * *
    [Renumber 1.3 through 1.5 as new 1.4 through 1.6. Insert new 1.3 as 
follows:]

1.3 Shape, Flexibility, and Thickness

    Flat-size pieces that do not meet the standards in 301.1.3 through 
301.1.5 must be prepared as parcels.
* * * * *

385 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Renumber item b as new item c. Insert new item b for 5-digit 
scheme sort as follows:]
    b. 5-digit scheme (bundles and sacks) for flats meeting the 
automation-compatibility standards in 301.3.0: the ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
ranges processed by the USPS as a single scheme, as shown in L007.
* * * * *
    [Renumber items d and f as new items e and g. Insert new item d for 
3-digit scheme sort as follows:]
    d. 3-digit scheme bundles for flats meeting the automation-
compatibility standards in 301.3.0: the ZIP Code in the delivery 
address on all pieces begins with one of the 3-digit ZIP Code ranges 
processed by the USPS as a single scheme, as shown in L008.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Renumber items c through f as new items e through h. Insert new 
items c and d for 5-digit and 3-digit scheme sorts as follows:]
    c. A 5-digit scheme sort for flats weighing up to 20 ounces and 
meeting the automation-compatibility standards in 301.3.0 yields 5-
digit scheme bundles for those 5-digit ZIP Codes identified in L007 and 
5-digit bundles for other ZIP Codes. When standards require 5-digit/
scheme sort, mailers must prepare all possible 5-digit scheme bundles 
and sacks of flats before preparing 5-digit bundles and sacks. The 5-
digit ZIP Codes in each scheme are treated as a single presort 
destination subject to a single minimum volume, with no further 
separation required. Bundles prepared for a 5-digit scheme destination 
that contain pieces for only one of the schemed 5-digit ZIP Codes are 
still considered 5-digit scheme sorted and are labeled accordingly. 
Label mailpieces using an OEL under 708.7.0. Place bundles in 
appropriate containers using the OEL ``label to'' 5-digit ZIP Code.
    d. A 3-digit scheme sort for flats weighing up to 20 ounces and 
meeting the automation-compatibility standards in 301.3.0 yields 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
When standards require 3-digit/scheme sort, mailers must prepare all 
possible 3-digit scheme bundles of flats before preparing 3-digit 
bundles. The 3-digit ZIP Codes in each scheme are treated as a single 
presort destination subject to a single minimum volume, with no further 
separation by 3-digit ZIP Code required. Bundles prepared for a 3-digit 
scheme destination that contain pieces for only one of the schemed 3-
digit ZIP Codes are still considered 3-digit scheme sorted and are 
labeled accordingly. Mailpieces must be labeled using an OEL under 
708.7.0. Place 3-digit scheme bundles in 3-digit through mixed ADC 
containers, as applicable, using the OEL ``label to'' 3-digit ZIP Code.
* * * * *
    [Revise heading of 5.0 as follows:]

5.0 Preparing Presorted Flats

* * * * *

5.2 Bundling

* * * * *

5.2.2 Bundling and Labeling

    [Add a new first sentence to 5.2.2 as follows:]
    For mailings consisting entirely of pieces meeting the automation-
compatibility criteria in 301.3.0, pieces must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence, bundle size, and labeling:
    [Revise items a and b as follows to make 5-digit and 3-digit 
schemes required:]
    a. 5-digit scheme (optional, but required for 5-digit rate); red 
Label 5 or OEL. See definition in 1.4c.
    b. 3-digit scheme (required); green Label 3 or OEL. See definition 
in 1.4d.

[[Page 15388]]

5.3 Sacking

* * * * *

5.3.2 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (optional, but required for 5-digit rate); see 
1.4c; scheme sort required, only for pieces meeting the automation-
compatibility criteria in 301.3.0; minimum 10 addressed pieces; 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.5 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC FLT 5D SCH NBC.'' For 
5-digit sacks, ``PSVC FLT 5D NBC.''
* * * * *

400 Discount Mail: Parcels

401 Physical Standards

1.0 Physical Standards for Parcels

    [Revise the heading of 1.1 as follows:]

1.1 Processing Categories

    [Revise the first sentence of 1.1 as follows:]
    USPS categorizes parcels into one of three mail processing 
categories: machinable, irregular, or outside parcel. These categories 
are based on the physical dimensions of the piece, regardless of the 
placement (orientation) of the delivery address on the piece.
* * * * *

1.5 Machinable Parcels

1.5.1 Criteria

    A machinable parcel is any piece that is (see Exhibit 1.5.1, 
Machinable Parcel Dimensions):
    [Revise item a as follows:]
    a. Not less than 6 inches long, 3 inches high, \1/4\ inch thick, 
and 6 ounces in weight, except under 1.5.2. A mailpiece exactly \1/4\ 
inch thick is subject to the 3\1/2\-inch height minimum under 601.1.0.
* * * * *
    [Renumber 1.5.2 through 1.5.4 as new 1.5.3 through 1.5.5. Insert 
new 1.5.2 to allow lower-weight machinable parcels as follows:]

1.5.2 Criteria for Lightweight Parcels

    A machinable parcel may weigh less than 6 ounces (but not less than 
3.5 ounces) if it meets all of the following conditions:
    a. The mailpiece is rectangular and able to maintain its integrity 
during mail processing (see 601.3.0).
    b. The mailpiece bears a parcel barcode, printed and placed 
according to 708.5.0.
    c. Mailpieces weighing at least 3.5 ounces but less than 5 ounces 
must be a paperboard or fiberboard box within the following dimensions:
    1. At least 1.5 inches thick and no more than 3 inches thick.
    2. At least 6 inches long and no more than 7 inches long.
    3. At least 3.5 inches high and no more than 5 inches high.
    d. Mailpieces weighing at least 5 ounces but less than 6 ounces 
must be within the following dimensions:
    1. More than \3/4\ inch thick and no more than 6 inches thick.
    2. At least 6 inches long and no more than 12 inches long.
    3. At least 3\1/2\ inches high and no more than 9 inches high.
* * * * *
    [Delete renumbered 1.5.5, Exclusions.]

2.0 Additional Physical Standards by Class of Mail

2.1 First-Class Mail Parcels

* * * * *
    [Delete 2.1.2 and replace with new 2.1.2 as follows:]

2.1.2 Surcharge

    Unless prepared in 5-digit/scheme containers or paid for at a 
single-piece rate, presorted parcels are subject to a $0.05 surcharge 
if any of the following characteristics apply:
    a. The parcels weigh less than 2 ounces.
    b. The parcels do not bear a UCC/EAN Code 128 or POSTNET barcode.
    c. The parcels are irregularly shaped, such as rolls, tubes, and 
triangles.
    [Revise the heading of 2.2 as follows:]

2.2 Standard Mail Parcels and Not Flat-Machinable Pieces

    [Revise heading and text of 2.2.1 as follows:]

2.2.1 Additional Physical Standards

    Each piece must weigh less than 16 ounces.
    [Revise heading and text of 2.2.2 as follows:]

2.2.2 Not Flat-Machinable Pieces

    Categorize Standard Mail with the following characteristics as Not 
Flat-Machinable pieces (unless mailed as parcels):
    a. Not Flat-Machinable pieces are rigid, with the following 
dimensions:
    1. At least 4 inches high, but not more than 12 inches high.
    2. At least 4 inches long, but not more than 15\3/4\ inches long.
    3. At least 0.009 thick, but not more than 1\1/4\ inches thick. 
(Pieces less than 5 inches long must be over \1/4\ inch thick.)
    b. Flexible pieces that are at least 4 inches high, but not more 
than 12 inches high, with either of the following dimensions:
    1. Over 15 inches long, but not more than 15\3/4\ inches long.
    2. Over \3/4\ inches thick, but not more than 1\1/4\ inches thick.
    [Delete 2.2.3 and replace with new 2.2.3 as follows:]

2.2.3 Surcharge

    Unless prepared in carrier route or 5-digit/scheme containers, 
Standard Mail parcels and Not Flat-Machinable pieces are subject to a 
$0.05 surcharge if:
    a. The machinable parcels do not bear a UCC/EAN Code 128 barcode 
(see 708.5.0) or the irregular parcels do not bear a UCC/EAN Code 128 
barcode (see 708.5.0) or POSTNET barcode (see 708.4.0).
    b. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN Code 128 barcode (see 708.5.0).
    c. The Not Flat-Machinable pieces weigh less than 6 ounces and do 
not bear a UCC/EAN Code 128 barcode (see 708.5.0) or POSTNET barcode 
(see 708.4.0).

2.3 Parcel Post

2.3.1 General Standards

    These standards apply to Parcel Post:
* * * * *
    [Revise item b as follows:]
    b. An item weighing less than 20 pounds but measuring more than 84 
inches (but not more than 108 inches) in combined length and girth is 
charged the rate for a 20-pound parcel for the zone to which it is 
addressed (balloon rate).
* * * * *

2.3.2 Nonmachinable Parcel Post

    Mailpieces described in this section that are mailed at the Inter-
BMC/ASF Parcel Post, Intra-BMC/ASF Parcel Post, DSCF Parcel Select, or 
DBMC Parcel Select rates are subject to the applicable nonmachinable 
surcharge in 453.1.0 unless the applicable special handling fee is 
paid. An oversized parcel as described in 2.3.1a is not subject to the 
nonmachinable surcharge. Mailpieces are nonmachinable if they meet any 
of the following criteria:
* * * * *
    [Revise item c as follows:]
    c. A parcel that weighs less than 6 ounces or more than 35 pounds, 
except under 1.5.2 for lightweight parcels.
* * * * *

402 Elements on the Face of a Mailpiece

* * * * *

[[Page 15389]]

2.0 Placement and Content of Markings

2.1 First-Class Mail and Standard Mail Markings

2.1.1 Placement

    Markings must be placed as follows:
* * * * *
    [Renumber item c as new item d. Insert new item c as follows:]
    c. Mark each Not Flat-Machinable piece ``Not Flat-Machinable'' or 
``NFM,'' either by including the marking in the optional endorsement 
line or by placing the marking immediately to the left of or below the 
postage area.
* * * * *

4.0 General Barcode Placement

    [Revise heading of 4.1 as follows:]

4.1 UCC/EAN Code 128 Barcode Location

* * * * *
    [Revise heading of 4.2 as follows:]

4.2 Clear Zone for UCC/EAN Code 128 Barcode

* * * * *
    [Add new 4.3 for POSTNET barcodes as follows:]

4.3 POSTNET Barcodes

    First-Class Mail parcels, Standard Mail irregular parcels, and Not 
Flat-Machinable pieces less than 6 ounces may bear POSTNET barcodes 
instead of UCC/EAN Code 128 barcodes. Pieces bearing POSTNET barcodes 
are not eligible to be mailed using eVS. Place POSTNET barcodes on 
First-Class Mail parcels, Standard Mail irregular parcels, or Not Flat-
Machinable pieces under 4.3.1 through 4.3.3.

4.3.1 General Placement of POSTNET Barcodes

    On any First-Class Mail parcel, any Standard Mail irregular parcel, 
or Standard Mail Not Flat-Machinable piece under 6 ounces, the POSTNET 
barcode may be anywhere on the address side as long as it is at least 
\1/8\ inch from any edge of the piece. POSTNET barcodes must be printed 
according to 708.4.0. Address block barcodes are subject to the 
standards in 4.3.2.

4.3.2 POSTNET Barcode in Address Block

    When the POSTNET barcode is included as part of the address block:
    a. Place the barcode in one of these positions:
    1. Above the address line containing the recipient's name.
    2. Below the city, state, and ZIP Code line.
    3. Above or below the keyline information.
    4. Above or below the optional endorsement line.
    b. Do not print the barcode anywhere between the address line 
containing the recipient's name and the city, state, and ZIP Code line.
    c. Allow at least \1/25\ inch clearance between the barcode and any 
information line above or below it. Do not separate the barcode more 
than \5/8\ inch from the top or bottom line of the address block. Allow 
at least \1/8\ inch clearance between the leftmost and rightmost bars 
and any adjacent printing.
    d. If a window envelope is used, allow at least \1/8\ inch 
clearance between the leftmost and rightmost bars and any printing or 
window edge, and at least \1/25\ inch between the barcode and the top 
and bottom window edges. These clearances must be maintained during the 
insert's range of movement in the envelope. Covers for address block 
windows are subject to 4.3.3.
    e. If an address label is used, allow a clear space of at least \1/
8\ inch between the barcode and the left and right edges of the address 
label, and at least \1/25\ inch between the barcode and the top and 
bottom edges of the address label.

4.3.3 Window Cover

    A window cover over the address block must be a nontinted clear or 
transparent material (e.g., cellophane or polystyrene) that permits the 
barcode and its background, as viewed through the window material, to 
meet the reflectance standards in 708.4.4. The edges of the window 
cover must be securely glued to the envelope.

430 Discount Parcels: First-Class Mail

433 Rates and Eligibility

1.0 Rates and Fees for First-Class Mail

* * * * *
    [Revise 1.4 to change heading and text describing the surcharge as 
follows:]

1.4 Surcharge

    Unless prepared in 5-digit/scheme sacks or paid for at the single-
piece rates, presorted parcels are subject to a $0.05 surcharge if any 
of the following characteristics apply:
    a. The parcels weigh less than 2 ounces.
    b. The parcels do not bear a UCC/EAN Code 128 or POSTNET barcode, 
under 708.0, for the ZIP Code of the delivery address.
    c. The parcels are irregularly shaped, such as rolls, tubes, and 
triangles.
* * * * *
    [Delete 3.4, Nonmachinable Surcharge for Parcel-Size Pieces. 
Renumber 3.5 through 3.7 as new 3.4 through 3.6.]
* * * * *
    [Insert new 4.0 to describe Presorted parcel rates as follows:]

4.0 Rate Eligibility for Presorted First-Class Mail Parcels

4.1 5-Digit Rate

    The 5-digit rate applies to presorted parcels in a 5-digit/scheme 
sack containing at least 10 pounds of parcels.

4.2 3-Digit Rate

    The 3-digit rate applies to presorted parcels in a 3-digit sack 
containing at least 10 pounds of parcels.

4.3 ADC Rate

    The ADC rate applies to presorted parcels in a 3-digit origin sack 
(no minimum), and to parcels in an ADC sack containing at least 10 
pounds of parcels.

4.4 Single-Piece Rate

    The single-piece rate applies to presorted parcels in a mixed ADC 
sack, with no minimum volume requirement.

434 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Parcels

* * * * *

2.2 Affixed Postage for Presorted First-Class Mail

    Unless permitted by other standards or by Business Mailer Support, 
USPS Headquarters, when precanceled postage or meter stamps are used as 
the postage payment method, only one payment method may be used in a 
mailing and each piece must bear postage under one of these conditions:
* * * * *
    [Revise item b to remove ``nonmachinable'' as follows:]
    b. A precanceled stamp or the full postage at the lowest First-
Class Mail 1-ounce rate applicable to the mailing job, and full postage 
on metered pieces for additional ounce(s), surcharge, or extra 
services.
* * * * *

435 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.2 Definition of Mailings

    [Delete item b. Combine item a and introductory text as follows:]
    A ``mailing'' is defined as a group of pieces within the same class 
of mail and

[[Page 15390]]

the same processing category that may be sorted together and/or 
presented under a single minimum volume mailing requirement under the 
applicable standards. Generally, types of mail that follow different 
flows through the postal processing system must be prepared as a 
separate mailing.

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
    [Renumber items a through e as new items b through f. Insert new 
item a as follows:]
    a. 5-digit scheme for First-Class Mail parcels: the ZIP Code in the 
delivery address on all pieces begins with one of the 5-digit ZIP Code 
ranges processed by the USPS as a single scheme, as shown in L606.
* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item d as follows:]
    d. The required quantity (for example, ``required at 10 pieces'') 
means that the unit must be prepared for the corresponding presort 
level whenever the specified quantity of mail is reached or exceeded. 
Smaller quantities may be prepared only if permitted by the standards 
for each rate.
* * * * *
    [Delete item g. Renumber item h as new item g and revise as 
follows:]
    g. A ``logical'' presort destination represents the total number of 
pieces in a mailing that are eligible for a specific presort level 
based on the required sortation, but which might not be contained in a 
single container (sack or pallet) due to applicable preparation 
requirements or the size of the individual pieces.
    [Delete 2.0, Bundles, and renumber 3.0 through 5.0 as new 2.0 
through 4.0.]
* * * * *

3.0 Sack Labels

* * * * *

3.4 Line 2 (Content Line)

    Line 2 (content line) must meet these standards:
* * * * *
    b. Codes: The codes shown below must be used as appropriate on Line 
2 of sack labels.
    [Revise the table in renumbered 3.4 to delete the entries for 
``General Delivery Unit,'' ``Highway Contract Route,'' ``Post Office 
Box Section,'' and ``Rural Route.'']
* * * * *
    [Revise the heading of renumbered 4.0 as follows:]

4.0 Preparing Presorted Parcels

* * * * *
    [Revise heading and text of 4.3 to remove bundling requirement as 
follows:]

4.3 Bundling

    Bundling is not permitted.

4.4 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme optional, but required for 5-digit rate (see 
definition in 1.3a); 10-pound minimum, labeling:
    1. Line 1: For 5-digit scheme sacks use L606, Column B. For 5-digit 
sacks use city, state, and 5-digit ZIP Code on mail (see 4.3c for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``FCM PARCELS 5D SCH.'' For 5-
digit sacks, ``FCM PARCELS 5D.''
* * * * *

440 Discount Parcels: Standard Mail

443 Rates and Eligibility

* * * * *

4.0 Rate Eligibility for Standard Mail

4.1 General Information

    [Revise 4.1 to delete reference to barcode discount and reorganize 
text as follows:]
    All Standard Mail rates are discounted rates. These rates apply to 
mailings meeting the basic standards in 2.0 through 4.0 and the 
corresponding standards for presorted rates under 5.0 or Enhanced 
Carrier Route rates under 6.0. Destination entry discount rates are 
available under 446.2.0 through 446.5.0 in Enter and Deposit. Pieces 
are subject to either a single minimum per piece rate or a combined 
piece/pound rate, depending on the weight of the individual pieces in 
the mailing under 4.2 or 4.3. Only organizations authorized by the USPS 
under 703.1.0 may mail at Nonprofit rates.

4.2 Minimum Per Piece Rates

    The minimum per piece rates (the minimum postage that must be paid 
for each piece) apply as follows:
* * * * *
    [Revise item b to delete the text that does not apply to parcels as 
follows:]
    b. In applying the minimum per piece rates, a mailpiece is 
categorized as a parcel based on the standards in 401, Physical 
Standards.
    [Revise item c to delete the text that does not apply to parcels 
and to add 5-digit rate mail as eligible for DDU rates as follows:]
    c. Individual Rates. There are separate minimum per piece rates for 
each subclass (Regular, Enhanced Carrier Route, Nonprofit, and 
Nonprofit Enhanced Carrier Route) and within each subclass for the 
level of presort within each mailing. Mailers may claim discounted 
rates for destination entry mailings under 446.2.0 through 446.5.0 in 
Enter and Deposit. DDU rates are available for parcels and Not Flat-
Machinable pieces entered only at 5-digit, Enhanced Carrier Route, or 
Nonprofit Enhanced Carrier Route rates. See 1.0, Rates and Fees for 
Standard Mail, for individual per piece rates.
* * * * *
    [Revise the heading and text of 4.4 as follows:]

4.4 Surcharge

    Unless prepared in carrier route (irregular parcels only) or 5-
digit/scheme containers, Standard Mail parcels and Not Flat-Machinable 
pieces are subject to a $0.05 surcharge if:
    a. The pieces placed in containers other than 5-digit/scheme 
containers do not contain the appropriate barcodes in 4.4b through 
4.4d.
    b. The machinable parcels do not bear a UCC/EAN Code 128 barcode, 
under 708.5.0, for the ZIP Code of the delivery address.
    c. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN Code 128 barcode, under 708.5.0, for the ZIP Code of the 
delivery address.
    d. The irregular parcels weigh less than 16 ounces, or the Not 
Flat-Machinable pieces weigh less than 6 ounces, and those pieces do 
not bear a UCC/EAN Code 128 or POSTNET barcode, under 708.0, for the 
ZIP Code of the delivery address.
    [Delete 4.5 and renumber 4.6 as new 4.5.]

4.5 Extra Services for Standard Mail

* * * * *

4.5.2 Eligible Matter

    [Revise renumbered 4.5.2 as follows:]
    Extra services may be used only with pieces mailed at machinable or 
irregular parcel rates.

4.5.3 Ineligible Matter

    Extra services (other than certificate of mailing service) may not 
be used for any of the following types of Standard Mail:
    [Revise item a as follows:]
    a. Pieces entered as letters, flats, or NFMs.
* * * * *
    [Revise the heading of 5.0 as follows:]

[[Page 15391]]

5.0 Additional Eligibility Standards for Presorted Standard Mail Pieces

* * * * *

5.2 Rate Application

    [Revise 5.2 to add Not Flat-Machinable pieces and to note separate 
rates as follows:]
    Rates for Regular and Nonprofit Standard Mail apply separately to 
machinable parcels, irregular parcels, and Not Flat-Machinable pieces 
that meet the eligibility standards in 2.0 through 4.0 and the 
preparation standards in 445.5.0 or 705.8.0, Preparing Pallets. When 
parcels and Not Flat-Machinable pieces are combined under 445.5.0, all 
pieces are eligible for the applicable rates when the combined total 
meets the eligibility standards. For example, when there are 10 pounds 
of combined machinable parcels, irregular parcels, and Not Flat-
Machinable pieces in a 5-digit sack, all pieces are eligible for the 5-
digit rates.
    [Delete 5.3 through 5.5. Insert new 5.3 for machinable parcel rates 
as follows:]

5.3 Rates for Machinable Parcels

5.3.1 5-Digit Rate

    The 5-digit rate applies to qualifying machinable parcels 
presented:
    a. In a 5-digit/scheme (L606) sack containing at least 10 pounds of 
pieces.
    b. On a 5-digit/scheme (L606) pallet, according to standards in 
705.8.10.
    c. As one or more parcels that mailers drop ship to a DDU under 
446.5.2.

5.3.2 BMC Rate

    The BMC rate applies to qualifying machinable parcels presented:
    a. In an ASF or BMC sack containing at least 10 pounds of parcels.
    b. On an ASF or BMC pallet, according to standards in 705.8.10.

5.3.3 Mixed BMC Rate

    The mixed BMC rate applies to machinable parcels that are not 
eligible for 5-digit or BMC rates. Place machinable parcels at mixed 
BMC rates in mixed BMC sacks under 445.5.3.2 or on mixed BMC pallets 
under 705.8.10.
    [Insert new 5.4 for irregular parcel rates as follows:]

5.4 Rates for Irregular Parcels

5.4.1 5-Digit Rate

    The 5-digit rate applies to irregular parcels (see 401.1.6) 
presented:
    a. In a 5-digit/scheme (L606) sack containing at least 10 pounds of 
pieces.
    b. On a 5-digit/scheme (L606) pallet, according to 705.8.10.
    c. As one or more parcels that mailers drop ship to a DDU under 
446.5.2.

5.4.2 3-Digit Rate

    The 3-digit rate applies to irregular parcels (see 401.1.6) 
presented:
    a. In a 3-digit sack containing at least 10 pounds of parcels.
    b. On a 3-digit pallet, according to 705.8.10.

5.4.3 ADC Rate

    The ADC rate applies to irregular parcels (see 401.1.6) presented:
    a. In an ADC sack containing at least 10 pounds of parcels, or in 
an optional 3-digit origin/entry sack.
    b. On an ADC pallet, according to 705.8.10.4.

5.4.4 Mixed ADC Rate

    The mixed ADC rate applies to irregular parcels (see 401.1.6) in 
mixed ADC containers.
    [Insert new 5.5 for Not Flat-Machinable rates as follows:]

5.5 Rates for Not Flat-Machinable (NFM) Pieces

5.5.1 5-Digit Rate

    The 5-digit rate applies to NFM pieces presented:
    a. In a 5-digit/scheme sack containing at least 10 pounds of 
pieces.
    b. In 5-digit bundles of five or more pieces on pallets or in 
pallet boxes under 705.8.0.
    c. On a 5-digit/scheme pallet under 705.8.10.
    d. As one or more pieces that mailers drop ship to a DDU under 
446.5.0.

5.5.2 3-Digit Rates

    The 3-digit rate applies to NFM pieces presented:
    a. In a 3-digit sack containing at least 10 pounds of pieces.
    b. On a 3-digit pallet under 705.8.10.

5.5.3 ADC Rate

    The ADC rate applies to NFM pieces presented:
    a. In an ADC or BMC/ASF sack containing at least 10 pounds of 
pieces or in an optional 3-digit origin/entry sack.
    b. On an ADC or BMC/ASF pallet under 705.8.10.

5.5.4 Mixed ADC Rate

    The mixed ADC rate applies to NFM pieces in mixed ADC or mixed BMC 
containers.
* * * * *

445 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.4 Preparation Definitions and Instructions

    For purposes of preparing mail:
* * * * *
    [Revise item c as follows:]
    c. A 5-digit/scheme sort for Standard Mail parcels yields 5-digit 
scheme sacks or pallets for those 5-digit ZIP Codes listed in L606 and 
5-digit sacks or pallets for other ZIP Codes. The 5-digit ZIP Codes in 
each scheme are treated as a single presort destination subject to a 
single minimum volume (if required), with no further separation by 5-
digit ZIP Code required. Sacks or pallets prepared for a 5-digit scheme 
destination that contain pieces for only one of the schemed 5-digit ZIP 
Codes are still considered 5-digit scheme sorted and are labeled 
accordingly.
* * * * *

2.0 Bundles

2.1 Definition of a Bundle

    [Revise 2.1 to restrict bundling as follows:]
    Mailers assemble pieces available for different presort 
destinations into groups. A ``bundle'' is a group of addressed pieces 
secured together as a unit. The term ``bundle'' does not apply to 
unsecured groups of pieces. Bundling under 445 is allowed only for 
carrier route bundles of irregular parcels and 5-digit bundles of Not 
Flat-Machinable pieces placed on pallets or in pallet boxes (see 6.0).
* * * * *

5.0 Preparing Presorted Parcels

* * * * *

5.3 Preparing Machinable Parcels

5.3.1 5-Digit Sacks

    [Revise 5.3.1 to change the preparation of 5-digit/scheme sacks 
containing both machinable and irregular parcels (or also containing 
Not Flat-Machinable pieces) to be that for machinable parcels, and to 
add 5-digit scheme sorting when claiming 5-digit rates, as follows:]
    There is no minimum for parcels prepared in 5-digit/scheme sacks 
entered at a DDU. Mailers choosing to combine the preparation of either 
irregular parcels or Not Flat-Machinable pieces (see 401.2.2.3) 
weighing 6 ounces or more with machinable parcels placed in 5-digit/
scheme sacks must prepare those sacks under 5.3.2. Mailers choosing to 
combine the preparation of Not Flat-Machinable pieces weighing 6 ounces 
or more with machinable parcels placed in ASF, BMC, or mixed BMC sacks 
must prepare the sacks under 5.3.2.

[[Page 15392]]

5.3.2 Sacking and Labeling

    Preparation sequence, sack size, and labeling:
    [Revise item a as follows:]
    a. 5-digit/scheme (optional, but required for 5-digit rate), see 
definition in 1.4c; 10-pound minimum except under 5.3.1; labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD MACH 5D SCH.'' For 5-
digit sacks, ``STD MACH 5D.''
    [Delete item b. Renumber items c through e as new items b through 
d.]
* * * * *

5.4 Preparing Irregular Parcels

    [Delete 5.4.1 and 5.4.2. Renumber 5.4.3 through 5.4.8 as new 5.4.1 
through 5.4.6. Revise heading and text of renumbered 5.4.1 to restrict 
bundling of irregular parcels as follows:]

5.4.1 Bundling

    Bundling is not permitted, except for bundles of carrier route 
irregular parcels under 6.0.
* * * * *
    [Delete renumbered 5.4.2 through 5.4.5 and renumber 5.4.6 through 
5.4.8 as new 5.4.2 through 5.4.4.]

5.4.2 Required Sacking

    [Revise renumbered 5.4.2 to change the minimum quantity per sack 
from 15 pounds to 10 pounds and to add NFMs as follows:]
    Mailers must prepare a sack when the quantity of mail for a 
required presort destination reaches 10 pounds of pieces. There is no 
minimum for parcels prepared in 5-digit/scheme sacks entered at a DDU. 
Mailers choosing to combine irregular parcels with machinable parcels 
and NFMs in 5-digit/scheme sacks must prepare those sacks under 5.3.2. 
Mailers may not prepare sacks containing irregular and machinable 
parcels to other presort levels. Mailers may combine irregular parcels 
with Not Flat-Machinable pieces weighing less than 6 ounces in sacks 
under 5.4.4.
* * * * *

5.4.4 Sacking and Labeling

    [Revise renumbered 5.4.4 as follows:]
    Preparation sequence, sack size, and labeling:
    a. 5-digit/scheme (optional, but required for 5-digit rate), 10-
pound minimum, except when entered at a DDU; labeling:
    1. For 5-digit scheme sacks, use L606, Column B. For 5-digit sacks, 
use city, state, and 5-digit ZIP Code on mail (see 4.3 for overseas 
military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD IRREG 5D SCH.'' For 5-
digit sacks, ``STD IRREG 5D.''
    b. 3-digit (required); 10-pound minimum; for irregular parcels 
only; labeling:
    1. For Line 1, L002, Column A.
    2. For Line 2, ``STD IRREG 3D.''
    c. Origin/entry 3-digit(s) (optional); no minimum; labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD IRREG 3D.''
    d. ADC (required); 10-pound minimum; labeling:
    1. Line 1: L603, Column B. (Use L004 for parcels that weigh at 
least 2 ounces and are not rolls or tubes. Do not mix pieces labeled to 
L603 with pieces labeled to L004.)
    2. Line 2: ``STD IRREG ADC.''
    e. Mixed ADC (required); no minimum; labeling:
    1. Line 1: L604, Column B. (Use L009 for parcels that weigh at 
least 2 ounces and are not rolls or tubes. Do not mix pieces labeled to 
L604 with pieces labeled to L009.)
    2. Line 2: ``STD IRREG WKG.''
    [Renumber 6.0 as new 7.0. Insert new 6.0 for preparation of NFM 
pieces as follows:]

6.0 Preparing Not Flat-Machinable Pieces

6.1 Basic Standards

    All mailings at Regular Standard Mail and Nonprofit Standard Mail 
NFM rates are subject to the general preparation standards in 1.0 
through 4.0. Prepare NFM pieces according to the standards in 6.0 
unless commingled with parcels under 445.5.0. Mark NFM pieces according 
to the standards in 402.2.1.1.

6.2 Bundling

    Mailers may make 5-digit bundles of at least five pieces when 
placed on pallets or in pallet boxes under 705.8.0. No other NFM 
bundling is permitted. The height of a 5-digit bundle must be at least 
1 inch less than the longest dimension of the individual mailpiece. For 
example, a mailpiece measuring 7 inches long, 5 inches high, and \1/2\ 
inch thick must be placed in a bundle no higher than 6 inches.

6.3 Sacking and Labeling

6.3.1 General

    Mailers may combine NFM pieces with parcels in 5-digit/scheme sacks 
under 445.5.3. See 6.3.2 for NFM pieces that weigh less than 6 ounces; 
see 6.3.3 for NFM pieces that weigh 6 ounces or more.

6.3.2 NFM Pieces Weighing Less Than 6 Ounces

    Preparation sequence, sack size, and labeling for sacks of NFM 
pieces that weigh less than 6 ounces:
    a. 5-digit/scheme (optional, but required for 5-digit rate); see 
definition in 445.1.4c; 10-pound minimum, except when drop shipped to a 
DDU (no minimum); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``STD NFM 5D SCH.'' For 5-
digit sacks, ``STD NFM 5D.''
    b. 3-digit (required); 10-pound minimum; labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NFM 3D.''
    c. Origin/entry 3-digit(s) (optional); no minimum; labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NFM 3D.''
    d. ADC (required); 10-pound minimum; labeling:
    1. Line 1: Use L004, Column B.
    2. Line 2: ``STD NFM ADC.''
    e. Mixed ADC (required); no minimum; labeling:
    1. Line 1: Use L009, Column B.
    2. Line 2: ``STD NFM WKG.''

6.3.3 NFM Pieces Weighing 6 Ounces or More

    Preparation sequence, sack size, and labeling for sacks of NFM 
pieces that weigh 6 ounces or more:
    a. 5-digit/scheme (optional but required for 5-digit rate); see 
definition in 445.1.4c; 10-pound minimum, except when drop shipped to a 
DDU (no minimum); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces (see 4.0 for overseas military mail).
    2. Line 2: For 5-digit scheme sacks, use ``STD NFM MACH 5D SCH.'' 
For 5-digit sacks, use ``STD NFM MACH 5D.''
    b. ASF (optional), permitted only for mail deposited at an ASF to 
claim DBMC rate; 10-pound minimum; labeling:
    1. Line 1: L602, Column B. DBMC rate eligibility determined by 
Exhibit 446.3.1, BMC/ASF--DBMC Rate Eligibility.
    2. Line 2: ``STD NFM MACH ASF.''
    c. BMC (required); 10-pound minimum; labeling:
    1. Line 1: L601, Column B. DBMC rate eligibility determined by 
Exhibit 446.3.1, BMC/ASF--DBMC Rate Eligibility.

[[Page 15393]]

    2. Line 2: ``STD NFM MACH BMC.''
    d. Mixed BMC (required); no minimum; labeling:
    1. Line 1: ``MXD'' followed by L601, Column B information for BMC 
serving 3-digit ZIP Code prefix of entry post office.
    2. Line 2: ``STD NFM MACH WKG.''
* * * * *

446 Enter and Deposit

* * * * *

4.0 Destination Sectional Center Facility (DSCF) Entry

* * * * *

4.2 Eligibility

    Pieces in a mailing that meets the standards in 2.0 and 4.0 are 
eligible for the DSCF rate, as follows:
* * * * *
    [Insert new item c as follows:]
    c. When prepared and deposited under 705.6.3.
* * * * *

5.0 Destination Delivery Unit (DDU) Entry

* * * * *

5.2 Eligibility

    [Revise 5.2 to allow 5-digit sacks of parcels to be entered at DDUs 
and to add ``Not Flat-Machinable'' pieces as follows:]
    Pieces in a mailing that meets the standards in 2.0 and 5.0 are 
eligible for the DDU rate when deposited at a DDU, addressed for 
delivery within that facility's service area, and prepared as follows:
    a. Irregular parcels in carrier route bundles sorted to carrier 
route sacks, and otherwise eligible for and claimed at a carrier route 
rate.
    b. One or more parcels or Not Flat-Machinable pieces in 5-digit 
containers.

450 Discount Parcels: Parcel Post

453 Rates and Eligibility

* * * * *

3.0 Rate Eligibility Standards for Parcel Post

3.1 Parcel Post and Parcel Select Rate Eligibility

    There are five Parcel Post (including Parcel Select) rate 
categories: Intra-BMC, Inter-BMC, destination bulk mail center (DBMC), 
destination sectional center facility (DSCF), and destination delivery 
unit (DDU). Parcel Post mailed at any of the destination entry rates is 
called ``Parcel Select'' (see 456.2.0). Intra-BMC and Inter-BMC Parcel 
Post rates and DBMC Parcel Select rates are calculated based on the 
zone to which the parcel is addressed and the weight of the parcel. 
DSCF and DDU Parcel Select rates are calculated based on the weight of 
the parcel. Requirements for Parcel Post rates and discounts are as 
follows:
* * * * *
    [Revise item f as follows:]
    f. The barcode discount applies to Inter-BMC/ASF and Intra-BMC/ASF 
Parcel Post machinable parcels (401.1.5) that bear a barcode under 
708.5.0 for the ZIP Code of the delivery address and are part of a 
mailing of 50 or more Parcel Post rate pieces.
* * * * *
    [Revise item h as follows:]
    h. An item weighing less than 20 pounds but measuring more than 84 
inches (but not more than 108 inches) in combined length and girth is 
charged the rate for a 20-pound parcel for the zone to which it is 
addressed (balloon rate).
* * * * *

455 Mail Preparation

* * * * *

5.0 Standards for Barcode Discounts

5.1 Standards for Barcoded Mail

    [Revise 5.1 as follows:]
    The barcode discount applies to Inter-BMC/ASF and Intra-BMC/ASF 
Parcel Post machinable parcels (401.1.5) that bear a barcode under 
708.5.0 for the ZIP Code of the delivery address and are part of a 
mailing of 50 or more Parcel Post rate pieces.
* * * * *

456 Enter and Deposit

* * * * *

2.0 Parcel Select

* * * * *

2.2 Rate Eligibility for Parcel Select Rates

* * * * *

2.2.2 DBMC Rates

    For DBMC rates, pieces must meet the applicable standards in 2.1 
through 2.6 and the following:
* * * * *
    [Renumber items b and c as new items c and d. Insert new item b as 
follows:]
    b. Machinable parcels must bear a barcode under 708.5.0 for the ZIP 
Code of the delivery address. Nonbarcoded machinable parcels are 
eligible only for the Intra-BMC/ASF rates.
* * * * *

2.6 Acceptance at Designated SCF

    Mailers may deposit parcels otherwise eligible for the DBMC rates 
at an SCF designated by the USPS for destination ZIP Codes listed in 
labeling list L607. The following standards apply:
* * * * *
    [Revise item b as follows:]
    b. Bound Printed Matter machinable parcels under 466.3.3 and 
Standard Mail parcels and NFMs under 705.6.3 may be included.
* * * * *

460 Discount Parcels: Bound Printed Matter

    [Incorporate the standards for Bound Printed Matter in 160 into 
460. Make revisions throughout to change single-piece Bound Printed 
Matter to ``nonpresorted'' Bound Printed Matter and make the following 
additional changes:]
* * * * *

465 Mail Preparation

1.0 General Information for Mail Preparation

* * * * *

1.3 Terms for Presort Levels

    Terms used for presort levels are defined as follows:
* * * * *
    [Renumber items c through g as new items d through h. Insert new 
item c for 5-digit schemes as follows:]
    c. 5-digit scheme (pallets and sacks) for Bound Printed Matter 
parcels: The ZIP Code in the delivery address on all pieces begins with 
one of the 5-digit ZIP Code ranges processed by the USPS as a single 
scheme, as shown in L606.
* * * * *

5.0 Preparing Presorted Parcels

* * * * *

5.2 Preparing Irregular Parcels Weighing Less Than 10 Pounds

* * * * *

5.2.3 Required Sacking

    [Revise the third sentence in the introductory text as follows:]
    A sack must be prepared when the quantity of mail for a required 
presort destination reaches either 10 addressed pieces or 20 pounds, 
whichever occurs first. Smaller volumes are not permitted (except mixed 
ADC sacks). Optional SCF sacks may be prepared only when there are at 
least 10 addressed pieces or 20 pounds, whichever occurs first. Sacking 
is not required for 5-digit bundles when prepared for and entered at 
DDU rates. Such bundles may be bedloaded and may weigh up to 40 pounds. 
Sacking also is subject to these conditions:
* * * * *

[[Page 15394]]

5.2.4 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
through f as new items b through e.]
    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC IRREG 5D SCH.'' For 5-
digit sacks, ``PSVC IRREG 5D.''
* * * * *

5.3 Preparing Irregular Parcels Weighing 10 Pounds or More

* * * * *

5.3.3 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
through f as new items b through e.]
    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC IRREG 5D SCH.'' For 5-
digit sacks, ``PSVC IRREG 5D.''
* * * * *

5.4 Preparing Machinable Parcels Not Claiming the DBMC Rates

* * * * *

5.4.2 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
and d as new items b and c.]
    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC MACH 5D SCH.'' For 5-
digit sacks, ``PSVC MACH 5D.''
* * * * *

5.5 Preparing Machinable Parcels Claiming the DBMC Rates

* * * * *

5.5.2 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]
    a. 5-digit/scheme (required); labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: ``PSVC MACH 5D SCHEME'' or ``PSVC MACH 5D SCH.''
* * * * *

466 Enter and Deposit

1.0 Presenting a Mailing

    [Revise the heading of 1.1 as follows:]

1.1 Verification and Entry--Presorted, Carrier Route, Destination 
Entry, And Barcoded Mailings

* * * * *
    [Renumber 1.2 through 1.5 as new 1.3 through 1.6. Insert new 1.2 as 
follows:]

1.2 Verification and Entry--Nonpresorted Mailings

    Nonpresorted rate Bound Printed Matter is not offered at post 
offices, branches, or stations or through Postal Service carriers, 
except under 1.2c and 1.2d. Mailers must deposit Nonpresorted Bound 
Printed Matter as follows:
    a. At the time and place specified by the postmaster at the office 
of mailing.
     b. For metered mail, at other than the licensing post office only 
as permitted under 705.18.0, Metered Mail Drop Shipment.
    c. For permit imprint mail, only at the post office where the 
permit is held (see 604.5.0).
    d. At any post office, branch, or station or with a Postal Service 
carrier, if the correct postage is applied, including postage for any 
extra service elected.
* * * * *

3.0 Destination Bulk Mail Center (DBMC) Entry

* * * * *

3.2 Acceptance at Designated SCF--Mailer Benefit

    Mailers may deposit machinable parcels otherwise eligible for the 
DBMC rates at an SCF designated by the USPS for destination ZIP Codes 
listed in labeling list L607. The following standards apply:
* * * * *
    [Revise item c as follows:]
    c. Parcel Select machinable parcels under 456.2.6 and Standard Mail 
parcels and NFMs under 705.6.3 may be included.
* * * * *

470 Media Mail

* * * * *

475 Mail Preparation

* * * * *

5.0 Preparing Media Mail Parcels

* * * * *

5.2 Preparing Machinable Parcels

* * * * *

5.2.2 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
and d as new items b and c.]
    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC MACH 5D SCH.'' For 5-
digit sacks, ``PSVC MACH 5D.''
* * * * *
    [Revise heading of 5.3 as follows:]

5.3 Preparing Irregular Parcels

* * * * *

5.3.4 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]
    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC IRREG 5D SCH.'' For 5-
digit sacks, ``PSVC IRREG 5D.''
* * * * *

480 Library Mail

* * * * *

485 Mail Preparation

* * * * *

5.0 Preparing Library Mail Parcels

* * * * *

5.2 Preparing Machinable Parcels

* * * * *

5.2.2 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
and d as new items b and c.]
    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC MACH 5D SCH.'' For 5-
digit sacks, ``PSVC MACH 5D.''
* * * * *
    [Revise heading of 5.3 as follows:]

5.3 Preparing Irregular Parcels

* * * * *

[[Page 15395]]

5.3.4 Sacking and Labeling

    Preparation sequence and labeling:
    [Replace items a and b with new item a as follows. Renumber items c 
through e as new items b through d.]
    a. 5-digit/scheme (optional, but required for 5-digit rate); 
labeling:
    1. Line 1: For 5-digit scheme sacks, use L606, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code on mail (see 4.3 for 
overseas military mail).
    2. Line 2: For 5-digit scheme sacks, ``PSVC IRREG 5D SCH.'' For 5-
digit sacks, ``PSVC IRREG 5D.''
* * * * *

500 Additional Services

503 Extra Services

* * * * *

4.0 Insured Mail

* * * * *

4.2 Basic Information

4.2.1 Description

    Insured mail provides the following features:
* * * * *
    [Revise item d as follows:]
    d. Insured mail service provides the mailer with a mailing receipt. 
No record of insured mail is kept at the office of mailing. For mail 
insured for $200 or less, the USPS maintains delivery information (not 
including a signature) for a specified period of time. For mail insured 
for more than $200, the USPS maintains a delivery record (which 
includes the recipient's signature) for a specified period of time. 
Customers may obtain a delivery record by purchasing additional 
services; see 6.0 for details.

4.2.2 Eligible Matter

    The following types of mail may be insured:
* * * * *
    [Revise item b as follows:]
    b. Standard Mail pieces prepared as machinable or irregular parcels 
(bulk insurance only).
* * * * *

4.2.4 Additional Services

    [Revise the first sentence in 4.2.4 as follows:]
    Insuring an item for more than $200 allows customers to purchase 
restricted delivery service or return receipt service. The following 
services may be purchased at a retail post office and combined with 
insurance if the applicable standards for the services are met and the 
additional service fees are paid:
* * * * *
    [Revise item c as follows:]
    c. Return receipt for merchandise (for items insured for $200 or 
less).
* * * * *

4.3 Mailing

* * * * *

4.3.3 Markings and Forms

    The treatment of pieces is determined by the insurance amount:
    [Revise items a and b as follows:]
    a. Retail pieces insured for $200 or less: The mailer must affix a 
barcoded Form 3813 (see Exhibit 4.3.3) to each piece above the delivery 
address and to the right of the return address. No signature is 
obtained.
    b. Retail pieces insured for more than $200: The mailer must affix 
a barcoded Form 3813-P (see Exhibit 4.3.3) to each piece above the 
delivery address and to the right of the return address.
* * * * *

4.3.5 Integrated Barcodes

    The following options are available for mailers who print their own 
labels:
* * * * *
    c. Mailers must use an integrated barcode (see Exhibit 4.3.5c) when 
insurance is purchased online for Priority Mail and for parcels mailed 
at First-Class Mail, Media Mail, or Parcel Post rates. This barcode 
combines insurance with electronic option Delivery Confirmation or 
Signature Confirmation into a single barcode on the shipping label. 
Additional information on the integrated barcode can be found in 
Publication 91, Confirmation Services Technical Guide.
    [Revise items c1 and c2 as follows:]
    1. Mailers may purchase insurance online for indemnity coverage of 
$200 or less with electronic option Delivery Confirmation service. The 
human-readable text above the integrated barcode must state, ``e/USPS 
DELIVERY CONFIRMATION'' or, for parcels prepared using eVS under 
705.2.9, ``USPS DELIVERY CONFIRMATION.''
    2. Mailers may purchase insurance online for indemnity coverage of 
more than $200, up to $500, with electronic option Delivery 
Confirmation service. The human-readable text above the integrated 
barcode must state, ``e/USPS INSURED'' or, for parcels prepared using 
eVS under 705.2.9, ``USPS INSURED.''
* * * * *

4.3.7 Receipt

    Receipts are provided as follows:
    a. For each retail insured mail article, the mailer receives a USPS 
sales receipt and the appropriate postmarked (round-dated) insured mail 
form as follows:
    [Revise items a1 and a2 as follows:]
    1. Form 3813 when the insurance coverage is $200 or less.
    2. Form 3813-P when the insurance coverage is more than $200.
* * * * *

4.5 Delivery

    [Revise 4.5 as follows:]
    An item insured for $200 or less receives a delivery scan. An item 
insured for more than $200 receives a delivery scan and the recipient's 
signature. Delivery of insured mail is subject to 508.1.0, Recipient 
Options, and 508.2.0, Conditions of Delivery.
* * * * *

6.0 Return Receipt

* * * * *

6.2 Basic Information

* * * * *

6.2.2 Eligible Matter

    Return receipt service is available for:
* * * * *
    [Revise items b, c, and d to replace old value of $50 with new 
value of $200. Further revise item c to remove reference to residual 
shape surcharge and insert text about preparation as machinable or 
irregular parcels as follows:]
    b. First-Class Mail (including Priority Mail) when purchased at the 
time of mailing with Certified Mail, COD, insured mail (for more than 
$200), or Registered Mail service.
    c. Standard Mail prepared as parcels when bulk insurance (for more 
than $200) is purchased at the time of mailing.
    d. Package Services when purchased at the time of mailing with COD 
or insured mail (for more than $200).
* * * * *

6.3 Obtaining Service

* * * * *

6.3.2 After Mailing

    [Revise first sentence in the introductory text to replace old 
value of $50 with new value of $200 as follows:]
    The mailer may request a delivery record after mailing for Express 
Mail, Certified Mail, Registered Mail, COD mail, and mail insured for 
more than $200. When a delivery record is available, the USPS provides 
the mailer information from that record, including to whom the mail was 
delivered and the date of delivery. The mailer requests a delivery 
record by completing Form 3811-A, paying the appropriate fee in 6.1.1, 
and submitting the request to the appropriate office as follows:
* * * * *

[[Page 15396]]

7.0 Restricted Delivery

* * * * *

7.2 Basic Information

* * * * *

7.2.2 Eligible Matter

    Restricted Delivery service is available for:
    [Revise items a, b, and c to replace old value of $50 with new 
value of $200. Further revise item b to remove reference to residual 
shape surcharge and insert text about preparation as machinable or 
irregular parcels as follows:]
    a. First-Class Mail (including Priority Mail) when purchased at the 
time of mailing with Certified Mail, COD, insured mail (for more than 
$200), or Registered Mail service.
    b. Standard Mail prepared as machinable or irregular parcels when 
bulk insurance (for more than $200) is purchased at the time of 
mailing.
    c. Package Services when purchased at the time of mailing with COD 
or insured mail (for more than $200).
* * * * *

8.0 Return Receipt for Merchandise

* * * * *

8.2 Basic Information

* * * * *

8.2.2 Eligible Matter

    [Revise 8.2.2 as follows:]
    Return receipt for merchandise is available for merchandise sent as 
Priority Mail, Standard Mail machinable and irregular parcels, and 
Package Services.
* * * * *

8.2.4 Additional Services

    The following services may be combined with return receipt for 
merchandise if the applicable standards for the services are met and 
the additional service fees are paid:
* * * * *
    [Revise item b to replace old value of $50 with new value of $200 
as follows:]
    b. Insurance (for up to $200).
* * * * *

9.0 Delivery Confirmation

* * * * *

9.2 Basic Information

* * * * *

9.2.2 Eligible Matter

    [Revise 9.2.2 to remove reference to Standard Mail residual shape 
surcharge and insert text about Standard Mail preparation as machinable 
or irregular parcels as follows:]
    Delivery Confirmation is available for First-Class Mail parcels, 
for all Priority Mail pieces, for Standard Mail pieces prepared as 
machinable or irregular parcels (electronic option only), and for 
Package Services parcels under 401.1.0. For the purposes of using 
Delivery Confirmation with a Package Services parcel, the parcel must 
meet these additional requirements:
* * * * *

9.2.6 Additional Services

    Delivery Confirmation may be combined with:
* * * * *
    [Revise items d and e as follows:]
    d. Restricted delivery, if purchased with insurance for more than 
$200, COD, or Registered Mail service.
    e. Return receipt, if purchased with insurance for more than $200, 
COD, or Registered Mail service.
* * * * *

10.0 Signature Confirmation

* * * * *

10.2 Basic Information

* * * * *

10.2.2 Eligible Matter

    [Revise the introductory text of 10.2.2 as follows:]
    Signature Confirmation is available for First-Class Mail parcels, 
Package Services parcels defined in 401.1.0, and for all Priority Mail 
pieces. For the purposes of using Signature Confirmation with a Package 
Services parcel, the parcel must meet these additional requirements:
* * * * *

10.2.6 Additional Services

    Signature Confirmation may be combined with:
* * * * *
    [Revise item d as follows:]
    d. Restricted delivery, if purchased with insurance for more than 
$200, COD, or Registered Mail service.
* * * * *

507 Mailer Services

    [Revise 507 to change the term ``accounting fee'' to ``account 
maintenance fee'' throughout the chapter.]

1.0 Treatment of Mail

* * * * *

1.5 Treatment for Ancillary Services by Class of Mail

* * * * *

1.5.2 Periodicals

    Undeliverable-as-addressed (UAA) Periodicals publications 
(including publications pending Periodicals authorization) are treated 
as described in Exhibit 1.5.2, with these additional conditions:
* * * * *
    [Revise the second-to-last sentence in item f as follows:]
    f. The publisher may request the return of copies of undelivered 
Periodicals by printing the endorsement ``Address Service Requested'' 
on the envelopes or wrappers, or on one of the outside covers of 
unwrapped copies, immediately preceded by the sender's name, address, 
and ZIP+4 or 5-digit ZIP Code. This endorsement obligates the publisher 
to pay return postage. Each returned piece is charged the single-piece 
First-Class Mail rate for the weight and shape of the piece, and the 
nonmachinable surcharge if applicable, or the Priority Mail rate for 
the weight and destination of the piece. When the address correction is 
provided incidental to the return of the piece, there is no charge for 
the correction.
* * * * *

1.5.3 Standard Mail

    Undeliverable-as-addressed (UAA) Standard Mail is treated as 
described in Exhibit 1.5.3a and Exhibit 1.5.3k, with these additional 
conditions:
* * * * *
    [Revise item j as follows:]
    j. A returned piece endorsed ``Return Service Requested'' is 
charged the single-piece First-Class Mail rate for the weight and shape 
of the piece, and the nonmachinable surcharge if applicable, or the 
Priority Mail rate for the weight and destination of the piece. The 
appropriate First-Class Mail rate for a Not Flat-Machinable piece is 
the First-Class Mail parcel rate.
* * * * *

Exhibit 1.5.3a Treatment of Undeliverable Standard Mail

    [Add a new entry for Standard Mail using Address Change Service 
with the electronic or the automated option as follows:]

[[Page 15397]]

------------------------------------------------------------------------
        Mailer endorsement              USPS treatment of UAA pieces
------------------------------------------------------------------------

                              * * * * * * *
``Address Service Requested'' \3\.  If no change-of-address order on
                                     file:
                                    Piece returned with reason for
                                     nondelivery attached (First-Class
                                     Mail rate charged).
                                    If change-of-address order on file:
                                        Months 1 through 12:
                                        Piece forwarded ($0.35 per
                                        letter or $1.05 per flat postage
                                        due charged to mailer); separate
                                        notice of new address provided
                                        (address correction fee
                                        charged).
                                        Months 13 through 18:
                                        Piece returned with new address
                                        attached (First-Class Mail rate
                                        charged).
                                        After month 18: Piece
                                        returned with reason for
                                        nondelivery attached (First-
                                        Class Mail rate charged).

                              * * * * * * *
------------------------------------------------------------------------

    [Renumber footnote 3 as footnote 4. Revise footnote 2 and insert 
new footnote 3 as follows:]
    2. Valid for all pieces not using Address Change Service electronic 
and automated options under footnote 3.
    3. Valid only for pieces using Address Change Service electronic 
and automated options as automated postage due transactions are 
implemented.
* * * * *

1.6 Attachments and Enclosures

1.6.1 Periodicals

    [Revise the first sentence in 1.6.1 as follows:]
    Undeliverable Periodicals (including publications pending 
Periodicals authorization) with a nonincidental First-Class Mail 
attachment or enclosure are returned at the single-piece First-Class 
Mail rate for the weight and shape of the piece, and the nonmachinable 
surcharge if applicable, or Priority Mail rate for the weight and 
destination of the piece. The weight of the attachment or enclosure is 
not included when computing the charges for return of the mailpiece. 
Undeliverable Periodicals (including publications pending Periodicals 
authorization) with an incidental First-Class Mail attachment or 
enclosure are treated as dead mail unless endorsed ``Address Service 
Requested.''

1.6.2 Standard Mail

    [Revise the first sentence in 1.6.2 as follows:]
    Undeliverable, unendorsed Standard Mail with a nonincidental First-
Class Mail attachment or enclosure is returned at the single-piece 
First-Class Mail rate for the weight and shape of the piece or Priority 
Mail rate for the weight and destination of the piece. The weight of 
the First-Class Mail attachment or enclosure is not included when 
computing the charges for return of the mailpiece. Undeliverable, 
unendorsed Standard Mail with an incidental First-Class Mail attachment 
or enclosure is treated as dead mail.
* * * * *

3.0 Address Correction Services

* * * * *

3.2 Address Change Service (ACS)

* * * * *
    [Revise heading and text in 3.2.2 as follows:]

3.2.2 Service Options

    ACS offers three levels of service:
    a. An automated option for letter-size mail with electronic notices 
processed using OneCode technology (see 3.2.6, Additional Standards--
Intelligent Mail barcodes).
    b. An electronic option for all notices processed electronically, 
except automated notices under 3.2.2a.
    c. A manual option for notices processed manually.
* * * * *

10.0 Merchandise Return Service

* * * * *

10.5 Additional Features

* * * * *

10.5.3 Insured Markings

    [Revise 10.5.3 as follows:]
    The permit holder must either leave a clear space on the 
merchandise return label to the right of the return address for the 
insured label or instruct the customer to affix the merchandise return 
label to the article so that the USPS acceptance employee can place the 
insured label on the article directly above the merchandise return 
label.
* * * * *

508 Recipient Services

1.0 Recipient Options

1.1 Basic Recipient Concerns

* * * * *

1.1.7 Express Mail and Accountable Mail

    [Revise the introductory text of 1.1.7 to change the insurance 
threshold from $50 to $200 as follows:]
    The following conditions also apply to the delivery of Express Mail 
and accountable mail (registered, certified, insured for more than 
$200, or COD, as well as mail for which a return receipt or a return 
receipt for merchandise is requested or for which the sender has 
specified restricted delivery):
* * * * *

600 Basic Standards for All Mailing Services

601 Mailability

1.0 General Standards

* * * * *

1.4 Length and Height

    Determine length and height as follows:
    a. Letter-size pieces. Determine the length and height according to 
the location and orientation of the delivery address. The length is the 
dimension parallel to the address as read; the height is the dimension 
perpendicular to the length.
    b. Flat-size pieces. The length of a flat-size mailpiece is the 
longest dimension. The height is the dimension perpendicular to the 
length.
    c. Parcels and Not Flat-Machinable pieces. The length is the 
longest dimension.
    d. Customized MarketMail pieces. See 705.1.0.
* * * * *

604 Postage Payment Methods

1.0 Stamps

1.1 Postage Stamp Denominations

    [Add the forever stamp to the table of types and formats of 
stamps.]
* * * * *
    [Renumber 1.10 through 1.12 as new 1.11 through 1.13. Insert new 
1.10 as follows:]

1.10 Additional Standards for Forever Stamps

    Forever stamps are sold for the price of the current First-Class 
Mail single-piece 1-ounce letter rate in 133.1.5. The postage value of 
each forever stamp is the current First-Class Mail single-piece 1-ounce 
letter rate. Forever stamps may be used only on single-piece rate mail.

[[Page 15398]]

    [Revise the heading of renumbered 1.11 as follows:]

1.11 Additional Standards for Semipostal Stamps

* * * * *

609 Filing Indemnity Claims for Loss or Damage

1.0 General Filing Instructions

1.1 Extra Services With Indemnity

    A customer may file an indemnity claim for insured mail, collect on 
delivery (COD) items, Registered Mail with postal insurance, or Express 
Mail. Inquiries on uninsured Registered Mail may be filed as detailed 
in 503.2.0. Customers can find additional information in Publication 
122, Customer Guide to Filing Domestic Insurance Claims or Registered 
Mail Inquiries, available on http://www.usps.com and in post offices.

* * * * *

1.3 Who May File for Loss or Damage

    [Revise 1.3 as follows:]
    A claim may be filed by:
    a. Either the mailer or addressee, for damaged articles or articles 
with some or all of the contents missing.
    b. Either the mailer or addressee who is in possession of the 
original retail mailing receipt, or in possession of the online label 
record or computer printout of the web-based application as described 
in 3.1e., for lost articles.
    c. Only the merchandise return permit holder, for merchandise 
return service (MRS) parcels that are registered or insured as 
indicated by the permit holder on the MRS label.
    d. Only the mailer, when the mailer has added and paid for 
insurance on merchandise return service parcels.
    e. Only the mailer, for bulk insured service mail.

1.4 When To File for Loss or Damage

    [Revise 1.4 as follows:]
    File claims as follows:
    a. For damaged or missing contents, a customer should file a claim 
immediately, but must file no later than 60 days from the date of 
mailing.
    b. For a lost article, a customer must file a claim within the time 
limits in the chart below.

------------------------------------------------------------------------
                                   When to file (from mailing date)
    Mail type or service     -------------------------------------------
                                 No sooner than         No later than
------------------------------------------------------------------------
Insured Mail................  21 days.............  180 days.
COD.........................  45 days.............  180 days.
Registered Mail.............  15 days.............  180 days.
Registered COD..............  45 days.............  180 days.
Express Mail................  7 days..............  90 days.
Express Mail COD............  45 days.............  90 days.
APO/FPO Insured Mail (First-  45 days.............  1 year.
 Class Mail, SAM, PAL, or
 COD).
APO/FPO Insured Mail          75 days.............  1 year.
 (Surface Only).
------------------------------------------------------------------------

1.5 Where To File for Loss or Damage

    A claim may be filed:
* * * * *
    [Revise items b and c as follows:]
    b. Only at the post office where the merchandise return permit is 
held, for Registered Mail articles with merchandise return service.
    c. Online at http://www.usps.com for customers who purchased 

insurance online through Click-N-Ship or eBay.

1.6 How To File for Loss or Damage

    [Revise 1.6 as follows:]
    A customer may file a claim by presenting evidence of insurance, 
evidence of value, and/or proof of damage. If the article was mailed 
Express Mail COD or Registered Mail COD, the customer must provide both 
the original COD receipt with either the Express Mail or the Registered 
Mail receipt. The customer must complete the applicable portions of 
Form 1000. Customers may print Form 1000 from http://www.usps.com and 

complete the customer section before going to the Post Office.
* * * * *

2.0 Providing Proof of Loss or Damage 2.1 Missing Contents

    [Revise 2.1 as follows:]
    If a claim is filed because some or all of the contents are 
missing, the addressee must make the mailing container available to the 
USPS for inspection, including any wrapping, packaging, and any 
contents that were received. Failure to do so will result in denial of 
the claim.

2.2 Proof of Damage

    [Revise 2.1 as follows:]
    If the addressee files the claim, the addressee must make the 
damaged article and mailing container available to the USPS for 
inspection, including any wrapping, packaging, and any other contents 
that were received. If the mailer files the claim, the St. Louis ASC 
will notify the addressee by letter to present the damaged article and 
mailing container to the USPS for inspection, including any wrapping, 
packaging, and any other contents that were received. Failure to do so 
will result in denial of the claim.
    [Delete 2.3, Proof of Loss.]

3.0 Providing Evidence of Insurance and Value

3.1 Evidence of Insurance

    For a claim involving insured, COD, registered, or Express Mail 
service, the customer must present any of the following evidence 
showing that the particular service was purchased:
* * * * *
    [Revise item e as follows:]
    e. For insurance purchased online, the mailer may access and print 
an electronic record as follows:
    1. A computer printout from the Web-based application used to print 
the label and purchase the insurance. The printout must clearly 
identify the following information: The Delivery Confirmation or 
Signature Confirmation number of the insured parcel, total postage 
paid, insurance fee paid, declared value, declared mailing or shipping 
date, origin ZIP Code, and delivery ZIP Code.
    2. A printed online label record.
* * * * *

4.0 Claims

* * * * *

4.3 Nonpayable Claims

    Indemnity is not paid for insured mail, Registered Mail, COD, or 
Express Mail in these situations:
* * * * *
    [Revise items f and s as follows:]
    f. Loss resulting from delay of the mail, except under 4.2a2, 
Payable Express Mail Claim, and 4.3ae below.
* * * * *
    s. Consequential loss of Express Mail claimed, except under 4.2a3 
and 4.3ae.
* * * * *

[[Page 15399]]

5.0 Compensation

5.1 Payment Limitation

    [Revise 5.1 as follows:]
    The USPS does not make payment for more than the actual value of 
the article or, for bulk insurance, for more than the wholesale cost of 
the contents to the sender if a lesser amount. The USPS does not make 
payment for more than the maximum amount covered by the fee paid.
* * * * *

6.0 Adjudication of Claims

6.1 Initial Adjudication of Claims

    [Revise 6.1 as follows:]
    The St. Louis Accounting Service Center (ASC) adjudicates and pays 
or disallows all domestic claims, except the initial adjudication of 
domestic retail insured claims for insurance coverage of $50 or less 
that are not for bulk insured service, and claims appealed under 6.3. 
Domestic retail insured claims for insurance coverage of $50 or less, 
except for bulk insured service, are adjudicated and paid locally at 
the post office accepting the claims. Claims for insurance purchased 
online (through Click-N-Ship or eBay) up to $500 may be filed online 
through http://www.usps.com, and will be processed and paid through the 

St. Louis ASC.

6.2 Appealing a Claim Decision

    [Revise 6.2 as follows:]
    A customer may appeal a claim decision by filing a written appeal 
within 60 days of the date of the original decision. Except for 
domestic retail insured claims for insurance coverage of $50 or less, 
the customer must send the appeal directly to Claims Appeals (see 
608.8.0 for address). For domestic retail insured claims for insurance 
coverage of $50 or less, the customer must send the appeal to the post 
office where the claim was filed. That post office forwards the appeal 
to the manager of Claims Appeals at the St. Louis ASC.
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

1.0 Customized MarketMail

* * * * *

1.2 Rates

    [Revise 1.2 as follows:]
    Pieces mailed as Customized MarketMail under 705.1.0 must be 
charged the Regular or Nonprofit Standard Mail 5-digit nonentry rate 
for Not Flat-Machinable pieces and must not exceed 3.3 ounces.
* * * * *

2.3 Keyline

* * * * *

2.3.3 Rate Category Abbreviations

* * * * *

Exhibit 2.3.3a Rate Category Abbreviations--First-Class Mail

* * * * *
    [Delete the entry for Automation Carrier Route.]

Exhibit 2.3.3b Rate Category Abbreviations--Standard Mail

* * * * *
    [Delete the entry for Automation Carrier Route. Add an entry for 
Not Flat-Machinable pieces as follows:]

------------------------------------------------------------------------
             Code                             Rate category
------------------------------------------------------------------------
NF............................  Not Flat-Machinable
------------------------------------------------------------------------

* * * * *

6.0 Combining Mailings of Standard Mail and Package Services Parcels

6.1 Combining Machinable Parcels--DBMC Entry

* * * * *

6.1.2 Basic Standards

    Standard Mail and Package Services machinable parcels must meet the 
following conditions:
* * * * *
    [Renumber items c through h as new items d through i. Insert new 
item c as follows:]
    c. Parcel Select machinable parcels must bear a barcode under 
708.5.0 for the ZIP Code of the delivery address.
* * * * *
    [Revise heading and text of 6.2 to include all Package Services 
parcels when a combined mailing is drop shipped to DSCFs, and to allow 
mailers to combine Standard Mail parcels and NFMs with Packages 
Services parcels for DDU rates, as follows:]

6.2 Combining Parcels--Parcel Post OBMC Presort, BMC Presort, DSCF, and 
DDU Rates

6.2.1 Qualification

    [Revise 6.2.1 as follows:]
    Combination requirements for specific discounts and rates are as 
follows:
    a. When claiming Parcel Post OBMC Presort discounts, Parcel Post 
BMC Presort discounts, and DSCF rates for Parcel Post or Bound Printed 
Matter parcels, machinable Standard Mail parcels and NFMs 6 ounces or 
more may be combined with machinable Package Services parcels under 
6.2.
    b. When claiming the DSCF rate for Parcel Post or Bound Printed 
Matter parcels, all Standard Mail parcels and NFMs may be combined with 
Package Services parcels under 6.2.
    c. Standard Mail parcels and NFMs may be combined with Package 
Services parcels prepared for DDU rates under 6.2.
* * * * *

6.2.4 Preparation and Rates

    Combined parcels must be prepared as follows:
* * * * *
    [Revise items b and b6 as follows:]
    b. Parcel Post or Bound Printed Matter Qualifying for DSCF Rates. 
Mailers must prepare the combined mailings under the applicable 5-digit 
scheme and 5-digit sack requirements in 455.4.0 or the applicable 5-
digit scheme and 5-digit pallet requirements in 8.0 for the Parcel Post 
DSCF rates. All other requirements for Parcel Post DSCF rates and 
Standard Mail rates, as applicable, must be met. The following 
additional requirements apply:
* * * * *
    6. Standard Mail parcels are eligible for presorted rates according 
to 443.
    [Revise item c as follows. Delete item c3.]
    c. Parcel Post Qualifying for OBMC Presort or BMC Presort Rates. 
Mailers must prepare the combined mailings under the BMC pallet 
requirements in 8.0 for machinable parcels at Parcel Post OBMC Presort 
or BMC Presort rates. All other requirements for Parcel Post OBMC 
Presort or BMC Presort rates and Standard Mail rates must be met. The 
following additional requirements apply:
* * * * *
    [Revise item d as follows:]
    d. Package Services and Standard Mail parcels and NFMs qualifying 
for DDU rates:
    1. The combined mailings must be prepared under the applicable 5-
digit scheme and 5-digit sack requirements in 455.4.0 or the applicable 
5-digit scheme and 5-digit pallet requirements in 8.22 for the Parcel 
Post or Bound Printed Matter DDU rates.
    2. Line 2 of 5-digit scheme container labels must read, ``STD/PSVC 
PARCELS 5D SCH.'' Line 2 of 5-digit container labels must read, ``STD/
PSVC PARCELS 5D.''
* * * * *
    [Insert new 6.3 as follows:]

[[Page 15400]]

6.3 Combining Package Services and Standard Mail--Optional 3-Digit SCF 
Entry

6.3.1 Acceptance at Designated SCF--Qualification and Preparation

    Mailers may deposit parcels otherwise eligible for the Package 
Services and Standard Mail DBMC rates (for machinable parcels) and the 
Standard Mail SCF rate (for irregular parcels and Not Flat-Machinable 
pieces) at an SCF designated by the USPS for destination ZIP Codes 
listed in labeling list L607. The following standards apply:
    a. Standard Mail parcels, Not Flat-Machinable pieces, Bound Printed 
Matter machinable parcels, and Parcel Select machinable parcels may be 
included. Standard Mail parcels and Not Flat-Machinable pieces that 
weigh less than 2 ounces and Standard Mail parcels that are tubes, 
rolls, triangles, and similar pieces may not be included.
    b. Mailers must prepare pieces on 3-digit pallets or in 3-digit 
pallet boxes, or unload and physically separate the pieces into 
containers as specified by the destination facility.
    c. Parcel Select and Bound Printed Matter parcels are eligible for 
the applicable DBMC entry rate.
    d. Standard Mail machinable parcels are eligible for the BMC 
presort level, DBMC rate; Not Flat-Machinable pieces and irregular 
parcels are eligible for the 3-digit presort level, DSCF rate.
    e. All pieces must be for delivery within the service area of the 
SCF where they are deposited by the mailer.
    f. Postage on all zone-rated parcels deposited at the SCF is 
computed using the zone chart for that postal facility.

6.3.2 Documentation

    Presort documentation is required for each rate claimed if the 
manifest does not list pieces in presort order. Separate postage 
statements must be prepared for the Standard Mail and Package Services 
pieces. Within each group, combined forms may be prepared where the 
standards and the forms permit. All postage statements must be provided 
at the time of mailing.

6.3.3 Authorization

    Mailers must be authorized under 6.1.5 to prepare mailings that 
combine Standard Mail pieces and Package Services parcels.

6.3.4 Postage Payment

    Postage for all pieces must be paid with permit imprint at the post 
office serving the mailer's plant under an approved manifest mailing 
system under 2.0.

7.0 Combining Package Services Parcels for Destination Entry

* * * * *

7.2 Combining Package Services Machinable Parcels for DBMC Entry

* * * * *

7.2.2 Basic Standards

    Package Services parcels must meet the following conditions:
* * * * *
    [Renumber items c through h as new items d through i. Insert new 
item c as follows:]
     c. Parcel Select machinable parcels must bear a barcode under 
708.5.0 for the ZIP Code of the delivery address.
* * * * *

8.0 Preparing Pallets

* * * * *

8.5 General Preparation

* * * * *

8.5.3 Minimum Load

    The following minimum load standards apply to mail prepared on 
pallets:
    a. For Periodicals, Standard Mail, and Package Services (except for 
Parcel Post mailed at BMC Presort, OBMC Presort, DSCF, and DDU rates):
    [Revise item 1 to add an exception for letter trays as follows:]
    1. In a single mailing, the minimum load per pallet is 250 pounds 
of bundles, parcels, or sacks, except as provided in items 2 through 4 
below. When preparing letter trays on pallets, the minimum load is 36 
linear feet or three layers of trays, except as provided in item 3 
below.
* * * * *
    [Revise item a3 to expand the types of mail that can be placed on 
pallets with a reduced minimum load as follows:]
    3. A pallet may contain a minimum of 12 linear feet of letter trays 
or 100 pounds of nonletter-size mail on any pallet that is a BMC or ASF 
pallet entered at the destination BMC or ASF; an ADC pallet entered at 
the destination ADC; an SCF pallet entered at the destination SCF; and 
the only pallet entered at an individual destination BMC or ASF, ADC, 
or SCF facility.
* * * * *

8.5.6 Mail on Pallets

    These standards apply to mail on pallets:
* * * * *
    [Revise item c to delete ``automation carrier route'' and to 
replace ``presorted'' with ``nonautomation'' as follows:]
    c. For letter-size Standard Mail and Periodicals prepared in trays 
on pallets, mailers must prepare carrier route rate mail on separate 5-
digit pallets (5-digit carrier routes pallets) from automation rate or 
nonautomation rate mail (5-digit pallets).
* * * * *

8.6 Pallet Labels

* * * * *

8.6.5 Line 2 (Content Line)

* * * * *
    [Delete the entry for ``manual only'' processing in the table in 
item b.]

8.10 Pallet Presort and Labeling

8.10.1 Periodicals--Bundles, Sacks, or Trays

    [Replace ``AFSM-100 compatible'' with ``automation-compatible under 
301.3.0'' in 8.10.1.]
* * * * *

8.10.2 Standard Mail--Bundles, Sacks, or Trays

    [Replace ``AFSM-100 compatible'' with ``automation-compatible under 
301.3.0'' in 8.10.2. Reorganize introductory text as follows:]
    Mailers must prepare pallets under 8.0 in the sequence listed below 
and complete at each required level before preparing the next optional 
or required level. Unless indicated as optional, all sort levels are 
required. For mailings of sacks or trays on pallets, pallet preparation 
begins with 8.10.2c. For irregular parcels, use this preparation only 
for pieces in carrier route bundles or in sacks. Palletize unbundled or 
unsacked irregular parcels under 705.8.10.6. Pallets must be labeled 
according to the Line 1 and Line 2 information listed below and under 
8.6. Mailers also may palletize bundles of Standard Mail flats under 
10.0, 12.0, or 13.0.
    [Delete items a and c to remove the merged 5-digit and merged 5-
digit scheme pallet levels; renumber item b as new item a; renumber 
items d through k as new items b through i.]
* * * * *
    [Revise renumbered item c to allow all 5-digit scheme bundles or 
sacks on 5-digit pallets as follows:]
    c. 5-digit, required except for trays, permitted for bundles, 
sacks, and trays. Pallet must contain only automation rate and/or 
Presorted rate mail for the same 5-digit ZIP Code or the same 5-digit 
scheme. 5-digit scheme bundles and sacks are assigned to 5-digit 
pallets according to the ``label to'' 5-digit ZIP Code. Labeling: * * *
* * * * *

[[Page 15401]]

8.10.3 Package Services Flats--Bundles and Sacks

    [Replace ``AFSM-100 compatible'' with ``automation-compatible under 
301.3.0'' in 8.10.3.]
* * * * *
    [Delete items a, c, and d to remove the 5-digit scheme, the merged 
5-digit and merged 5-digit scheme pallet levels; renumber item b as new 
item a; renumber items e through l as new items b through i.]
* * * * *
    [Revise the heading and text of 8.10.5 to add Not Flat-Machinable 
pieces as follows:] 

8.10.5 Package Services and Standard Mail Machinable Parcels, and Not 
Flat-Machinable Pieces Weighing 6 Ounces or More

    Pallets must be prepared under 8.0 in the sequence listed below and 
completed at each required level before the next optional or required 
level is prepared. Unless indicated as optional, all sort levels are 
required under the conditions shown. At the mailer's option, Inter-BMC/
ASF and Intra-BMC/ASF Parcel Post mailings may be prepared on pallets 
under this section. Destination entry rates eligibility applies only to 
Standard Mail (see 446 for parcels and NFMs that weigh 6 ounces or 
more), Parcel Select (see 456), and Bound Printed Matter (see 466). 
Combined mailings of Standard Mail and Package Services machinable 
parcels also must meet the standards in 6.0. Pallets must be labeled 
according to the Line 1 and Line 2 information listed below and under 
8.6.
    a. 5-digit scheme, required. Pallet must contain parcels or NFMs 
for the same 5-digit scheme under L606. For 5-digit destinations not 
part of L606, or for which scheme sorts are not performed, 5-digit 
pallets are prepared under 8.10.5b. Labeling:
    1. Line 1: Use L606.
    2. Line 2: ``STD MACH 5D,'' ``STD NFM MACH 5D,'' or ``PSVC MACH 
5D,'' as applicable; followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet must contain parcels only for the same 
5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).
    2. Line 2: ``STD MACH 5D,'' ``STD NFM MACH 5D,'' or ``PSVC MACH 
5D,'' as applicable.
    c. ASF, optional, but required for DBMC rates. Not available for 
the Buffalo NY ASF in L602. Pallets must contain only parcels or NFMs 
for the 3-digit ZIP Code groups in L602. Labeling:
    1. Line 1: Use L602.
    2. Line 2: ``STD MACH ASF,'' ``STD NFM MACH ASF,'' or ``PSVC MACH 
ASF,'' as applicable.
    d. BMC, required. Pallets must contain only parcels or NFMs for the 
3-digit ZIP Code groups in L601. Labeling:
    1. Line 1: Use L601.
    2. Line 2: ``STD MACH BMC,'' ``STD NFM MACH BMC,'' or ``PSVC MACH 
BMC,'' as applicable.
    e. Mixed BMC, optional. Labeling:
    1. Line 1: ``MXD'' followed by information in L601, Column B, for 
BMC serving 3-digit ZIP Code prefix of entry post office (or labeled to 
plant serving entry post office if authorized by processing and 
distribution manager).
    2. Line 2: ``STD MACH WKG,'' ``STD NFM MACH WKG,'' or ``PSVC MACH 
WKG,'' as applicable.
    [Insert new 8.10.6 as follows:]

8.10.6 Standard Mail Irregular Parcels Weighing 2 Ounces or More

    Mailers who palletize unbundled or unsacked irregular parcels must 
make pallets or pallet boxes when there are 250 pounds or more for the 
destination levels below. Pallets or pallet boxes of irregular parcels 
(except tubes, rolls, and similar pieces) weighing 2 ounces or more 
must be prepared under 8.0 in the sequence listed below and completed 
at each required level before the next optional or required level is 
prepared. Unless indicated as optional, all sort levels are required. 
Label pallets or pallet boxes according to the Line 1 and Line 2 
information listed below and under 8.6. Mailers may not prepare tubes, 
rolls, and similar pieces or pieces that weigh less than 2 ounces on 
pallets or in pallet boxes, except for pieces in carrier route bundles 
or in sacks under 8.10.2.
    a. 5-digit scheme, required. Pallet or pallet box must contain 
parcels only for the same 5-digit scheme under L606. For 5-digit 
destinations not part of L606 prepare 5-digit pallets under 8.10.6b. 
Labeling:
    1. Line 1: Use L606.
    2. Line 2: ``STD IRREG 5D''; followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet or pallet box must contain parcels 
only for the same 5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).
    2. Line 2: ``STD IRREG 5D.''
    c. 3-digit, optional, option not available for 3-digit ZIP Code 
prefixes marked ``N'' in L002. Pallet or pallet box must contain 
parcels only for the same 3-digit ZIP Code. Labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD IRREG 3D.''
    d. ADC, required. Pallet or pallet box must contain parcels for the 
3-digit ZIP Code groups in L004. Labeling:
    1. Line 1: Use L004.
    2. Line 2: ``STD IRREG ADC.''
    e. Mixed ADC, optional. Labeling:
    1. Line 1: ``MXD'' followed by city, state, and ZIP Code 
information for ADC serving 3-digit ZIP Code prefix of entry post 
office as shown in L009, Column A.
    2. Line 2: ``STD IRREG WKG.''
    [Insert new 8.10.7 as follows:]

8.10.7 Standard Mail Not Flat-Machinable Pieces Weighing Less Than 6 
Ounces

    Mailers must prepare pieces on pallets or in pallet boxes when 
there are 250 pounds or more of NFMs for the destination levels below. 
Prepare pallets or pallet boxes of NFM pieces weighing less than 6 
ounces under 8.0 in the sequence listed below and completed at each 
required level before the next optional or required level is prepared. 
Unless indicated as optional, all sort levels are required. The height 
of a 5-digit bundle must be at least 1 inch less than the longest 
dimension of the individual mailpiece. For example, a mailpiece 
measuring 7 inches long, 5 inches high, and \1/2\ inch thick must be 
placed in a bundle no higher than 6 inches. Label pallets or pallet 
boxes according to the Line 1 and Line 2 information listed below and 
under 8.6.
    a. 5-digit scheme, required. Pallet or pallet box must contain NFMs 
only for the same 5-digit scheme under L606. For 5-digit destinations 
not part of L606 prepare 5-digit pallets under 8.10.6b. Labeling:
    1. Line 1: Use L606.
    2. Line 2: ``STD NFM 5D'' followed by ``SCHEME'' (or ``SCH'').
    b. 5-digit, required. Pallet or pallet box must contain NFMs only 
for the same 5-digit ZIP Code. Labeling:
    1. Line 1: city, state, and 5-digit ZIP Code destination (see 
8.6.4c for overseas military mail).
    2. Line 2: ``STD NFM 5D.''
    c. 3-digit, optional, option not available for 3-digit ZIP Code 
prefixes marked ``N'' in L002. Pallet or pallet box must contain NFMs 
only for the same 3-digit ZIP Code. Labeling:
    1. Line 1: Use L002, Column A.
    2. Line 2: ``STD NFM 3D.''
    d. ADC, required. Pallet or pallet box must contain NFMs for the 3-
digit ZIP Code groups in L004. Labeling:
    1. Line 1: Use L004.
    2. Line 2: ``STD NFM ADC.''
    e. Mixed ADC, optional. Labeling:
    1. Line 1: ``MXD'' followed by city, state, and ZIP Code 
information for ADC serving 3-digit ZIP Code prefix of entry post 
office as shown in L009, Column A.

[[Page 15402]]

    2. Line 2: ``STD NFM WKG.''
* * * * *

8.14 Pallets of Bundles, Sacks, and Trays

* * * * *

8.14.2 Standard Mail

    Additional pallet preparation:
    [Revise item a as follows:]
    a. Combined mailings. Nonprofit Standard Mail may be included in 
the same mailing or palletized on the same pallet as Regular Standard 
Mail only as permitted by standard. Mailers may include machinable 
parcels, irregular parcels, and Not Flat-Machinable pieces on 5-digit 
pallets.
* * * * *
    [Revise the heading of 8.22 as follows:]

8.22 Parcel Post and Bound Printed Matter DDU Rates

* * * * *
    [Revise the heading of 9.0 as follows:]

9.0 Preparing Cotrayed and Cosacked Bundles of Automation and 
Nonautomation Flats

* * * * *

9.2 Periodicals

* * * * *

9.2.5 Sack Preparation and Labeling

* * * * *
    [Revise item a as follows:]
    a. 5-digit/scheme, required; scheme sort required, only for pieces 
meeting the automation-compatibility criteria in 301.3.0; 24-piece 
minimum, fewer pieces not permitted; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces.
    2. Line 2: ``PER'' or ``NEWS'' as applicable and, for 5-digit 
scheme sacks, ``FLT 5D SCH BC/NBC''; for 5-digit sacks, ``FLT 5D BC/
NBC.''
* * * * *

9.3 Standard Mail

* * * * *

9.3.5 Sack Preparation and Labeling

* * * * *
    [Revise item a as follows:]
    a. 5-digit/scheme, required; scheme sort required, only for pieces 
meeting the automation-compatibility criteria in 301.3.0; 125-piece/15-
pound minimum; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces.
    2. Line 2: For 5-digit scheme sacks, ``STD FLT 5D SCH BC/NBC''; for 
5-digit sacks, ``STD FLT 5D BC/NBC.''
* * * * *

9.4 Bound Printed Matter

* * * * *

9.4.4 Sack Preparation and Labeling

* * * * *
    [Revise item a as follows:]
    a. 5-digit/scheme, required; scheme sort required, only for pieces 
meeting the automation-compatibility criteria in 301.3.0; minimum 20 
addressed pieces; labeling:
    1. Line 1: For 5-digit scheme sacks, use L007, Column B. For 5-
digit sacks, use city, state, and 5-digit ZIP Code destination on 
pieces.
    2. Line 2: For 5-digit scheme sacks, ``PSVC FLT 5D SCH BC/NBC''; 
for 5-digit sacks, ``PSVC FLT 5D BC/NBC.''
* * * * *
    [Revise 11.0 to replace ``presorted'' with ``nonautomation'' 
throughout.]

11.0 Preparing Cobundled Automation Rate and Nonautomation Rate Flats

11.1 First-Class Mail

11.1.1 Basic Standards

    Mailers may choose to cobundle (see 335.1.4m) automation rate and 
nonautomation rate pieces as an option to the basic bundling 
requirements in 9.0, Preparing Cotrayed and Cosacked Bundles of 
Automation and Nonautomation Flats, subject to the following 
conditions:
* * * * *
    [Delete item f. Renumber item g as item f.]

11.2 Periodicals

11.2.1 Basic Standards

    [Revise the introductory text in 11.2.1 to require 5-digit scheme 
and 3-digit scheme sort and eliminate distinctions between AFSM 100 and 
UFSM 1000 flats as follows:]
    Mailers may choose to cobundle (under 705.11.0) automation rate and 
nonautomation rate flat-size pieces as an option to the basic bundling 
requirements in 707.22.0 and 707.25.0. All flats in the same bundle 
must meet the standards in either 301.3.0 or 707.25.3. 5-digit scheme 
and 3-digit scheme bundles also must meet the additional standards in 
707.18.4i and 707.18.4r. Mailing jobs (for flats meeting the criteria 
in 301.3.0) prepared using the 5-digit scheme and/or the 3-digit scheme 
bundle preparation must be sacked under 10.0 or palletized under 10.0, 
12.0, or 13.0. All bundles are subject to the following conditions:
* * * * *

11.2.2 Bundle Preparation

    [Revise the introductory text in 11.2.2 as follows:]
    Pieces meeting the criteria in 301.3.0 must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence, bundle size, and labeling:
* * * * *
    [Revise item b to require 5-digit scheme bundles as follows:]
    b. 5-digit scheme, required; * * *
* * * * *
    [Revise item d to require 3-digit scheme bundles as follows:]
    d. 3-digit scheme, required; * * *
* * * * *

11.3 Standard Mail

11.3.1 Basic Standards

    [Revise the introductory text in 11.3.1 to require 5-digit scheme 
and 3-digit scheme sort and eliminate distinctions between AFSM 100 and 
UFSM 1000 flats as follows:]
    Mailers may choose to cobundle (see 345.1.4u) automation rate and 
nonautomation rate flat-size pieces as an option to the basic bundling 
requirements in 345.5.0 and 345.7.0. All flats in the same bundle must 
meet the standards in 301.3.0. 5-digit scheme and 3-digit scheme 
bundles must meet the additional standards in 345.1.4f and 345.1.4n. 
Mailing jobs prepared using the 5-digit scheme and/or 3-digit scheme 
bundle preparation (for flats meeting the criteria in 301.3.0) must be 
sacked under 10.0 or palletized under 10.0, 12.0, or 13.0. All bundles 
are subject to the following conditions:
* * * * *
    [Delete item g. Renumber item h as new item g.]

11.3.2 Bundle Preparation

    [Revise the introductory text in 11.3.2 as follows:]
    Pieces meeting the criteria in 301.3.0 must be prepared in 5-digit 
scheme bundles for those 5-digit ZIP Codes identified in L007 and in 3-
digit scheme bundles for those 3-digit ZIP Codes identified in L008. 
Preparation sequence, bundle size, and labeling:
    [Revise item a to require 5-digit scheme bundles as follows:]
    a. 5-digit scheme, required; * * *
* * * * *
    [Revise item c to require 3-digit scheme bundles as follows:]

[[Page 15403]]

    c. 3-digit scheme, required; * * *
* * * * *

707 Periodicals

* * * * *

3.0 Physical Characteristics and Content Eligibility

* * * * *

3.5 Mailpiece Construction

* * * * *

3.5.2 Size and Weight

    [Insert new second sentence in 3.5.2 to include the maximum weight 
and thickness for Periodicals automation flat-size pieces as follows:]
    Periodicals mail may not weigh more than 70 pounds or measure more 
than 108 inches in length and girth combined. Automation flat-size 
pieces may not weigh more than 6 pounds or measure more than 1\1/4\ 
inch thick. Additional size and weight limitations apply to individual 
Periodicals rate categories. Requester publications must contain at 
least 24 pages per issue.
* * * * *

15.0 Ride-Along Rate Eligibility

* * * * *

15.3 Physical Characteristics

    The host Periodicals piece and the Ride-Along piece must meet the 
following physical characteristics:
* * * * *
    [Revise item c as follows:]
    c. A Periodicals piece with a Ride-Along that claims automation 
rates must meet the automation requirements in 201.3.0, Physical 
Standards for Automation Letters and Cards, or 25.0, Preparing Flat-
Size Automation Periodicals, and must maintain the same processing 
category as before the addition of the Ride-Along. For example, if, due 
to the inclusion of a Ride-Along piece, an automation letter-size host 
piece can no longer be processed as an automation letter, then that 
piece must be charged the Periodicals nonautomation rate for the host 
piece plus the Ride-Along rate or the Standard Mail rate for the 
attachment or enclosure.
* * * * *

22.0 Preparing Presorted Periodicals

* * * * *

22.2 Bundle Preparation

    [Revise the introductory text of 22.2 as follows:]
    Mailings consisting entirely of pieces meeting the criteria in 
301.3.0 may be prepared in 5-digit scheme bundles for those 5-digit ZIP 
Codes identified in L007 and in 3-digit scheme bundles for those 3-
digit ZIP Codes identified in L008. Bundling is required before traying 
or sacking. A bundle must be prepared when the quantity of addressed 
pieces for a required presort level reaches the minimum bundle size. 
Smaller volumes are not permitted except mixed ADC bundles and 5-digit/
scheme and 3-digit/scheme bundles prepared under 22.4. Bundling is also 
subject to 19.0, Bundles. Preparation sequence, bundle size, and 
labeling:
* * * * *

22.7 Optional Tray Preparation--Flat-Size Nonautomation Pieces

    [Revise the introductory text in 22.7 as follows:]
    As an option, mailers may place in flat-size trays the automation-
compatible flat-size pieces prepared under 301.3.0 that would normally 
be placed in ADC, origin mixed ADC, or mixed ADC sacks. Pieces must not 
be secured in bundles. Mailers must group together pieces for each 5-
digit scheme, 5-digit, 3-digit scheme, 3-digit, and ADC destination as 
follows:
* * * * *

25.0 Preparing Flat-Size Automation Periodicals

25.1 Basic Standards

25.1.1 General

    [Revise 25.1.1 as follows:]
    Each piece must meet the physical standards in 301.3.0 or in 25.3. 
Bundle, sack, and tray preparation are subject to 18.0 through 21.0. 
Trays and sacks must bear the appropriate barcoded container labels 
under 708.6.0.
* * * * *

25.1.5 Bundle Preparation

    All pieces must be prepared in bundles and meet the following 
requirements:
    [Revise items a, c, and d as follows:]
    a. Pieces that meet the standards in 301.3.0 must be prepared in 
separate bundles from pieces that meet the standards in 25.3.
* * * * *
    c. Each bundle of pieces prepared under 301.3.0 and each bundle of 
pieces prepared under 25.3 must separately meet the bundle minimums in 
25.4.
    d. Presort destination bundles may contain fewer than six pieces 
when the mailpieces are too thick or too heavy to create a six-piece 
bundle. Rate eligibility is not affected if the total number of pieces 
bundled for a presort destination meets or exceeds the minimum for rate 
eligibility under 14.0.
* * * * *

25.1.7 Sack Preparation

    [Revise 25.1.7 as follows:]
    Mailers may combine bundles of pieces prepared under 301.3.0 and 
bundles of pieces prepared under 25.3 in the same sack.
* * * * *
    [Renumber 25.2 through 25.4 as new 25.4 through 25.6. Insert new 
25.2 and 25.3 as follows:]

25.2 Physical Standards

    Each flat-size piece must be rectangular and must meet the 
standards in 301.3.0 or the alternative criteria in 25.3.

25.3 Alternative Criteria

25.3.1 General

    As an exception to the standards in 301.1.4 and 301.3.2, mailers 
may prepare automation flat-size pieces according to 25.3 below. Pieces 
prepared under 25.3 and pieces prepared under 301.3.0 may not be 
combined in the same bundle. Determine length and height according to 
301.1.2.

25.3.2 Weight and Size

    The maximum weight for each piece is 6 pounds. The following 
minimum and maximum dimensions apply:
    a. Minimum height is 5 inches. Maximum height is 12 inches.
    b. Minimum length is 6 inches. Maximum length is 15 inches.
    c. Minimum thickness is 0.009 inch. Maximum thickness is 1.25 
inches.

25.3.3 Address Placement on Folded Pieces

    Mailers must design folded pieces so that the address is in view 
when the final folded edge is to the right and any intermediate bound 
or folded edge is at the bottom of the piece. Unbound flat-size pieces 
must be at least double-folded.

25.3.4 Flexibility and Deflection

    Pieces prepared under 25.3 are not required to meet the minimum 
standards for flexibility in 301.1.4 or the maximum standards for 
deflection in 301.3.2.4.

25.3.5 Additional Criteria

    Pieces must meet the standards for polywrap coverings in 301.3.3; 
protrusions and staples in 301.3.4; tabs, wafer seals, tape, and glue 
in 301.3.5; and uniform thickness and exterior format in 301.3.6.
* * * * *

[[Page 15404]]

25.6 Optional Tray Preparation--Flat-Size Barcoded Pieces

    [Revise the introductory text in renumbered 25.6 as follows:]
    As an option, mailers may place in trays the automation-compatible 
flat-size pieces prepared under 301.3.0 that would normally be placed 
in ADC, origin mixed ADC, or mixed ADC sacks. Pieces must not be 
secured in bundles. Mailers must group together pieces for each 5-digit 
scheme, 5-digit, 3-digit scheme, 3-digit, and ADC destination as 
follows:
* * * * *

708 Technical Specifications

1.0 Standardized Documentation for First-Class Mail, Periodicals, 
Standard Mail, and Flat-Size Bound Printed Matter

* * * * *

1.2 Format and Content

    For First-Class Mail, Periodicals, Standard Mail, and flat-size 
Bound Printed Matter, standardized documentation includes:
* * * * *
    c. For mail in trays or sacks, the body of the listing reporting 
these required elements:
    [Revise item c1 as follows:]
    1. Tray/sack sortation level. Mailers must note with an asterisk 
(``*'') all trays containing overflow mail moved into that tray under 
235.6.6 and 245.7.5.
* * * * *
    [Revise item c3 as follows:]
    3. The number of pieces for each 5-digit ZIP Code in 5-digit/scheme 
bundles or trays; for each 3-digit ZIP Code in 3-digit/scheme bundles 
or trays; for each 3-digit/scheme in (A)ADC bundles or trays; for each 
(A)ADC in mixed (A)ADC bundles or trays (or, for Periodicals, origin 
mixed ADC trays). For automation-rate mailings prepared under the 
reduced overflow option, the number of pieces in the next higher level 
tray in lieu of overflow trays. For ECR letters prepared under 245.6.0, 
the number of pieces in carrier routes within full trays. For 
automation and nonautomation mail, and ECR Standard Mail, the number of 
pieces in each bundle level and presort destination.
* * * * *

1.3 Rate Level Column Headings

    The actual name of the rate level (or corresponding abbreviation) 
is used for column headings required by 1.2, Format and Content, and 
shown below:
    a. Automation First-Class Mail, Periodicals, and Standard Mail:
    [Delete the ``Carrier Route'' entry in item a. Revise the ``3/5'' 
and ``Basic'' entries as follows:]

------------------------------------------------------------------------
                   Rate                             Abbreviation
------------------------------------------------------------------------

                                * * * * *
5-Digit [Standard Mail flats]............  5B
3-Digit [Standard Mail flats]............  3B
ADC [Standard Mail flats]................  AB
Mixed ADC [Standard Mail flats]..........  MB

                                * * * * *
------------------------------------------------------------------------

    [Revise item b to add ``machinable and nonmachinable'' to Standard 
Mail in the introductory text. Delete the ``3/5'' entry and revise the 
``5-Digit,'' ``3-Digit,'' and ``Basic'' entries as follows:]
    b. Presorted First-Class Mail, nonautomation presorted Periodicals, 
and machinable and nonmachinable Standard Mail:

------------------------------------------------------------------------
                   Rate                             Abbreviation
------------------------------------------------------------------------

                                * * * * *
5-Digit [Standard Mail letters;            5D
 Periodicals letters, flats, and parcels].
3-Digit [Standard Mail letters;            3D
 Periodicals letters, flats, and parcels].
ADC [letters/cards and flats]............  AD
Mixed ADC [letters/cards and flats]......  MD
Mixed ADC [First-Class Mail parcels].....  SP

                                * * * * *
------------------------------------------------------------------------

    [Delete the ``Basic Automation'' entry in item c.]

1.4 Sortation Level

    [Revise the ``5-Digit Scheme'' entry as follows:]

------------------------------------------------------------------------
             Sortation level                        Abbreviation
------------------------------------------------------------------------

                                * * * * *
5-Digit Scheme [barcoded and machinable    5DGS
 letters].

                                * * * * *
------------------------------------------------------------------------

    [Revise the heading of 4.0 as follows:]

4.0 Standards for POSTNET and Intelligent Mail Barcodes

* * * * *

4.4 Reflectance

4.4.1 Background Reflectance

    A background reflectance of at least 50% in the red portion and 45% 
in the green portion of the optical spectrum must be produced in the 
following locations when measured with a USPS or USPS-licensed envelope 
reflectance meter:
* * * * *
    [Revise item b as follows:]
    b. The area surrounding the barcode (within 1/8 inch of the 
leftmost and rightmost bars and 1/25 inch above and below the barcode) 
of a card-size, letter-size, or flat-size piece barcoded in the address 
block and of a flat-size, First-Class Mail parcel, or Not-Flat 
Machinable piece barcoded elsewhere.
* * * * *

4.4.4 Dark Fibers and Background Patterns

    Dark fibers or background patterns (for example, checks) that 
produce a print contrast ratio of more than 15% when measured in the 
red and green portions of the optical spectrum are prohibited in these 
locations:
* * * * *
    [Revise item b as follows:]
    b. The area of the address block or the area of the mailpiece where 
the barcode appears on a flat-size piece in an automation rate mailing 
or on a First-Class Mail parcel or a Not Flat-Machinable piece.

4.5 Skew and Baseline Shift

* * * * *
    [Revise heading and text of 4.5.2 as follows:]

4.5.2 Flat-Size Pieces, First-Class Mail Parcels, Standard Mail 
Irregular Parcels, and Not Flat-Machinable Pieces

    The maximum rotational skew (slant or tilt of the individual 
barcode bars) for barcodes is 10 degrees from a 
perpendicular to the baseline of the barcode. There is no positional 
skew requirement. The individual bars of a barcode must not shift (be 
vertically offset) more than 0.015 inch from the average baseline of 
the barcode. For information on barcode placement for flat-size pieces, 
see 302.4.0. For information on barcode placement on parcels and Not 
Flat-Machinable pieces weighing less than 6 ounces, see 402.4.0.
    [Revise the heading of 5.0 as follows:]

5.0 Standards for Postal Routing Barcodes

5.1 Basic Requirements

    [Revise 5.1 as follows:]
    Mailers may use a postal routing barcode on parcels and Not Flat-
Machinable pieces that meet the eligibility requirements in 433.1.1 for 
First-Class Mail, 443.4.4 and 443.5.5 for Standard Mail, 453.3.1 for 
Parcel Post,

[[Page 15405]]

463.4.1 for Bound Printed Matter, 473.3.4 for Media Mail, or 483.3.4 
for Library Mail. Each parcel must bear a properly prepared UCC/EAN 
Code 128 barcode symbology as described in 5.3 that accurately 
represents the correct ZIP Code or ZIP+4 code of the delivery address. 
For information on barcode placement for parcels, see 402.4.0.
* * * * *

6.0 Barcoding Standards for Container Labels

6.1 Basic Standards--Tray and Sack Labels

6.1.1 Use

* * * * *

Exhibit 6.1.4 3-Digit Content Identifier Numbers

    [Revise the content identifier numbers as follows for First-Class 
Mail letters and parcels, Standard Mail letters, and Periodicals and 
Bound Printed Matter flats. Add content identifier numbers for Not 
Flat-Machinable pieces.]

------------------------------------------------------------------------
                                                 Human-readable content
        Class and Mailing              CIN                line
------------------------------------------------------------------------

                              * * * * * * *
First-Class Mail
FCM Letters--Automation
    [Delete codes 263, 264, and
     265 for carrier route
     trays.] * * *
FCM Letters--Nonautomation
 Machinable
    [Delete code 252 for 5-digit
     trays.] * * *

                              * * * * * * *
FCM Parcels--Presorted
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          289  FCM PARCELS 5D SCH.

                              * * * * * * *
Periodicals (PER)

                              * * * * * * *
PER Flats--Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          378  PER FLT 5D SCH NON BC.

                              * * * * * * *
PER Flats--Cosacked Automation
 and Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          321  PER FLT 5D SCH BC/NBC.

                              * * * * * * *
NEWS Flats--Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          478  NEWS FLT 5D SCH NON BC.

                              * * * * * * *
NEWS Flats--Cosacked Automation
 and Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          421  NEWS FLT 5D SCH BC/NBC.

                              * * * * * * *
Standard Mail
    [Delete codes 563 through 565
     for automation carrier route
     trays.]

                              * * * * * * *
STD Letters--Nonautomation
 Machinable
    [Delete code 552 for 5-digit
     trays.]

                              * * * * * * *
STD Flats--Cosacked Automation
 and Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          521  STD FLT 5D SCH BC/NBC.

                              * * * * * * *
STD Flats--Nonautomation
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          578  STD FLTS 5D SCH NON BC.

                              * * * * * * *
    [Add Not Flat-Machinable
     pieces as follows:]
STD Not Flat-Machinable Pieces
 Less Than 6 Ounces--
 Nonautomation
    5-digit sacks................          500  STD NFM 5D.
    5-digit scheme sacks.........          500  STD NFM 5D SCH.

[[Page 15406]]

    3-digit sacks................          501  STD NFM 3D.
    ADC sacks....................          502  STD NFM ADC.
    Mixed ADC/Mixed BMC sacks....          506  STD NFM WKG.

                              * * * * * * *
    [Add Not Flat-Machinable
     pieces as follows:]
STD Not Flat-Machinable Pieces 6
 Ounces or more--Nonautomation
    5-digit sacks................          500  STD NFM MACH 5D.
    5-digit scheme sacks.........          500  STD NFM MACH 5D SCH.
    ASF sacks....................          503  STD NFM MACH ASF.
    BMC sacks....................          505  STD NFM MACH BMC.
    Mixed ADC/Mixed BMC sacks....          506  STD NFM MACH WKG.

                              * * * * * * *
Package Services

                              * * * * * * *
Presorted BPM--Flats
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          649  PSV FLT 5D SCH NON BC.

                              * * * * * * *
BPM Flats--Cosacked Barcoded and
 Presorted
    [Add 5-digit scheme sacks as
     follows:]
    5-digit scheme sacks.........          648  PSV FLT 5D SCH BC/NBC.

                              * * * * * * *
------------------------------------------------------------------------

7.0 Optional Endorsement Lines (OELs)

7.1 OEL Use

7.1.1 Basic Standards

* * * * *

Exhibit 7.1.1 OEL Formats

    [Delete the example for ``Carrier Route--Automation (First-Class 
Mail and Standard Mail).'']
* * * * *

7.2 OEL Format

* * * * *

7.2.5 ZIP Code Information

    [Revise 7.2.5 to change the reference from 6.0 to 8.2 as follows:]
    Except for carrier route bundles, the OEL must include the ZIP Code 
information (5-digit ZIP Code or 3-digit ZIP Code prefix) determined by 
the sortation level and, when applicable, by the labeling list 
designated in Exhibit 7.2.5 for ADC, mixed ADC, AADC, or mixed AADC 
sortation levels. Carrier route OELs must show carrier route 
information as specified in 8.2.
* * * * *

8.0 Carrier Route Information Lines

8.1 Basic Information

    [Revise 8.1 as follows:]
    Mailers must prepare bundles of all mailpieces mailed at carrier 
route rates with optional endorsement lines under 7.0, carrier route 
information lines under 8.2, or facing slips (see 245.2.11 for Standard 
Mail letters, 345.2.14 for Standard Mail flats, 365.2.13 for Bound 
Printed Matter flats, 445.2.12 for Standard Mail parcels, 465.2.12 for 
Bound Printed Matter parcels, and 707.19.16 for Periodicals). Carrier 
route information lines may be on all pieces in a mailing, regardless 
of presort level. Mailers must use optional endorsement lines or 
carrier route information lines on all pieces in mailings of Standard 
Mail letters prepared under 245.6.7, except for pieces in full carrier 
routes trays.
* * * * *

709 Experimental Classifications and Rates

* * * * *
    [Delete 5.0, Priority Mail Flat-Rate Box. Renumber remaining 
sections 6.0 and 7.0 as new 5.0 and 6.0. The Priority Mail Flat-Rate 
Box becomes a permanent offering in 123.]
* * * * *

Neva R. Watson,
Attorney, Legislative.
BILLING CODE 7710-12-P

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[FR Doc. 07-1500 Filed 3-29-07; 8:45 am]

BILLING CODE 7710-12-C