FR Doc E7-245
[Federal Register: January 17, 2007 (Volume 72, Number 10)]
[Proposed Rules]               
[Page 2089-2133]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ja07-21]                         

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Part II

 Postal Service

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39 CFR Part 111

 New Standards for Domestic Mailing Services; Proposed Rule

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POSTAL SERVICE

39 CFR Part 111

 
New Standards for Domestic Mailing Services

AGENCY: Postal Service.

ACTION: Proposed rule; notice of further rulemaking.

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SUMMARY: On September 27, 2006, the Postal Service published a proposal 
in the Federal Register (71 FR 56587) providing new mailing standards 
to accompany the R2006-1 price change proposal currently before the 
Postal Rate Commission. In this revised proposal we respond to the 
comments we received, summarize our changes, and further revise the 
mailing standards.
    Our pricing proposal reflects 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 proposal 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, without 
the addition of extra postage. We also propose new shape-based prices 
for First-Class Mail, with lower rates for many letter-size pieces over 
1 ounce. Our proposal will make the Priority Mail flat-rate boxes a 
permanent product offering, and we will add a new 1-pound pricing 
option for Express Mail.
    For commercial mailers we propose new sorting options to reduce the 
number of trays in a mailing and new scheme preparations to give 
mailers access to lower rates and to better align flat-size mail 
preparation with mail processing. We also add a new automated Address 
Change Service to reduce the costs associated with undeliverable-as-
addressed mail. First-Class Mail parcel mailers will have new barcode 
options, and we propose new opportunities for mailers to combine 
Standard Mail and Package Services parcels in the same mailing.
    Periodicals mailers will have new incentives to use efficient 
containers, and we revise the copalletization standards as a permanent 
offering to encourage more publishers to combine mailings. We also add 
new prices for the editorial portion of a mailing to give mailers of 
high-editorial-content publications access to lower, destination entry 
rates.

DATES: We must receive your comments on or before January 31, 2007.

ADDRESSES: Mail or deliver written comments to the Manager, Mailing 
Standards, U.S. Postal Service, 475 L'Enfant Plaza SW., Room 3436, 
Washington, DC 20260-3436. You may inspect and photocopy all written 
comments at USPS Headquarters Library, 475 L'Enfant Plaza SW., 11th 
Floor N, Washington, DC, between 9 a.m. and 4 p.m., Monday through 
Friday.

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

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No. 
R2006-1 includes mail classification changes, new pricing structures, 
and price changes for most domestic mailing services. This proposed 
rule updates the revisions to Mailing Standards of the United States 
Postal Service, Domestic Mail Manual (DMM) that we would adopt to 
implement the R2006-1 price change proposal. We respond to comments on 
our September 27, 2006, Federal Register proposal (71 FR 56587), 
summarize major changes from the first proposal by class of mail and 
extra service, update our summary of the entire proposal, and update 
our proposed mailing standards. We invite your comments on all aspects 
of our second proposal.
    You can find our September proposal at http://www.usps.com/ratecase, along 

with side-by-side comparisons of today's prices and those that are 
currently under review by the Postal Rate Commission. We also provide 
helpful information for mailers on our Web site, including frequently 
asked questions, press releases, and Mailers Companion articles related 
to the pricing change.

Overview

    Our pricing strategy encourages an efficient mailstream to keep 
postage rates stable and to keep the mail a viable alternative for 
everyone. This revised proposal provides more detail to help mailers 
design mailpieces compatible with our processing systems and gives our 
customers the information they need to make good mailing decisions and 
access the lowest rates of postage.
    In early February we will publish an additional Federal Register 
notice incorporating comments from this proposal to ensure mailers have 
adequate time to prepare for the new standards and prices. The updated 
notice will provide a comprehensive view of our proposal at least a 
month before the Postal Service Governors vote on the new prices and an 
early opportunity to update software and other systems.

Summary of Comments

    We received comments on our mailing standards proposal from 
mailers, vendors, associations, and individuals. We appreciate your 
feedback. Of the 351 letters we received, 310 were similar comments on 
behalf of three nonprofit organizations that mail children's books. The 
other 41 comments were submitted by twenty-eight publishers, printers, 
and large mailers; six mailing associations; two software vendors; two 
individuals; one envelope vendor; one small-business owner; and one 
Postal Service employee.

General Comments

    Many commenters commended us for publishing the proposed standards 
early, for planning this revised proposal and an additional notice in 
February, and for communicating changes via DMM Advisory, Mailers 
Companion, and other avenues.
    Three commenters asked us to reformat our Federal Register proposal 
to provide more context to our mailing standards and to better 
highlight what we are changing. We appreciate this suggestion, and we 
added more of the current DMM text to our revisions--even if that text 
did not change--to provide context. We added a summary of changes to 
highlight the differences between our September proposal and this 
revised proposal. We also added more guidance throughout our mailing 
standards to help mailers read through our document and compare it to 
the current DMM.
    Twelve commenters expressed concern about the timeframe for the 
rate change. Five commenters requested a 120-day timeframe to prepare 
software and other systems; two mailers asked for a two-year timeframe; 
and one mailer asked for a minimum of 90 days. Commenters cited 
concerns about the complexity of the rate case and limited resources to 
make the required changes.
    The Postal Service Board of Governors sets the implementation date 
for the new prices and related changes. We published our mailing 
standards proposal in the Federal Register early in the rate change 
process to help mailers begin system planning and to allow for a 
second, updated proposal. Our February notice in advance of the Board's 
decision will further help mailers get ready for the change.

First-Class Mail Comments

    Two commenters commended us for proposing to eliminate First-Class 
Mail

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automation carrier route rates and for emphasizing 5-digit and 3-digit 
preparation schemes.
    Two commenters asked us to change our preparation requirements for 
automation heavy letters. Our experience and testing indicate that 
letter-size pieces over 3 ounces are most efficiently processed when 
they are in envelopes. Self-mailer and booklet-type pieces weighing 
over 3 ounces and letter-size pieces weighing over 3.5 ounces (even 
when enveloped) often jam and damage our equipment, the mailpieces 
themselves are damaged, and our mail processing speeds are 
significantly reduced. Therefore we will retain the current 
requirements.
    One commenter suggested we keep the current rigidity standards for 
determining nonmachinable letter-size pieces. We did not change the 
definition of ``rigidity'' for letters in DMM 201.2.0. One commenter 
asked for clarification on the applicable rate for a rigid letter-size 
piece. A rigid First-Class Mail letter-size piece will pay the flat-
size price.
    One commenter suggested a maximum weight of 3.5 ounces for all 
letter-size pieces, regardless of class. We propose to change the 
weight limit for all First-Class Mail letter-size pieces to 3.5 ounces. 
Because the proposed rate structure does not support a piece/pound rate 
for Standard Mail machinable and nonmachinable letters, we cannot 
propose a 3.5-ounce limit for those pieces.
    Two commenters expressed concern about customers' and employees' 
ability to determine postage under the new shape-based pricing for 
First-Class Mail. To ensure a smooth transition for both retail and 
business mailers, we are developing an in-depth communications and 
training plan to ensure both employees and customers have the knowledge 
they need to determine the correct postage.
    Six commenters asked us to clarify our definition of a ``full'' 
letter tray, and one commenter requested tolerance when trays are not 
quite filled to 85 percent capacity. Vendors commonly set presort 
software parameters at 85 percent capacity today, and most software 
includes defaults to that setting. Because fuller trays will help 
reduce costs and keep postage rates stable, we proposed this change to 
signal all mailers to set their software for trays that are at least 85 
percent full. Acceptance personnel will work with mailers when they 
identify trays that appear less than full, as they do today, so mailers 
can make adjustments on future mailings.
    Ten commenters requested clarification of the no-overflow tray 
option for automation letters. One commenter asked us to emphasize that 
presort bureaus likely will not use the option for combined mailings. 
Three commenters asked that we allow mailers to implement the no-
overflow tray option selectively within a mailing.
    We have been working with software vendors to identify different 
mail preparation scenarios and how presort software will handle them. 
We encourage mailers to use the option by clarifying that pieces moved 
back to a higher tray level will count toward the 150-piece requirement 
for the qualifying rate level. We acknowledge that the option may not 
be realistic in all mailing environments and emphasize that it is an 
option. We have adopted the commenters' proposal to allow mailers to 
selectively apply the option by 3-digit or automated area distribution 
center (AADC) destinations in any single mailing, and we modified the 
standards to reflect this change.
    We received two comments about the forever stamp. The first 
commenter agreed with the standards as proposed but asked us to change 
the Domestic Mail Classification Schedule to be consistent with the 
DMM. The Domestic Mail Classification Schedule is consistent with the 
DMM. Forever stamps will be used like other First-Class postage stamps. 
The second commenter asked us to clarify the use of forever stamps. 
Forever stamps may be used on single-piece mail and may not be used for 
discount mailings.
    We received three comments about First-Class Mail parcels. One 
commenter suggested we not require 5-digit/scheme and 3-digit 
preparation. We have adopted the suggestion to make 5-digit/scheme 
preparation optional to be consistent with Standard Mail parcel 
preparation. A second commenter asked why we would apply a surcharge to 
nonbarcoded First-Class Mail, Standard Mail, and Parcel Post parcels 
while giving a discount to barcoded Media Mail, Library Mail, and Bound 
Printed Matter parcels. Although the rate structures differ, we are 
consistent in our objective to encourage barcodes on parcels. Whether a 
customer pays a surcharge for failing to barcode a parcel or receives a 
discount for applying a barcode, we are providing an incentive to 
barcode parcels. A third commenter said it was not clear from the 
proposal if we would process First-Class Mail parcels on the Automated 
Package Processing System (APPS). If a mail processing facility has an 
APPS, that facility will very likely use it to process APPS-machinable 
parcels when they are not in 5-digit containers.
    One commenter noted that the additional-ounce rate is not the same 
for all ounce increments in our proposal. Presort bureaus will have to 
separate pieces that cannot be delivery point barcoded by weight to 
ensure correct postage is paid. The commenter requested we adjust the 
pricing proposal by making the additional-ounce rates consistent.
    The request to adjust the additional-ounce prices is outside the 
scope of our mailing standards proposal. The commenter is correct that 
pieces coded only with a 5-digit barcode because of, for example, an 
incomplete address or missing address elements, must be separated by 
ounce increment or properly documented to account for postage.
    One commenter asked if we will update the rate and fee schedules 
for Business Reply Mail (BRM) to include First-Class Mail flats and 
parcels and Priority Mail rates above 13 ounces. The commenter asked us 
to clarify the First-Class Mail BRM rate for pieces that weigh over 3.5 
ounces. BRM pays the per-piece fee plus the applicable First-Class Mail 
or Priority Mail rate. The rate for a letter-size piece over 3.5 ounces 
is the First-Class Mail flat-size rate. The application of the proposed 
fees for BRM mirror what is now in place.

Standard Mail Comments

    Nineteen commenters disagreed with or made suggestions regarding 
the proposed standards for flat-size mail. Most of these commenters 
asked for a clearer, more objective test for flexibility to determine 
whether a piece may be mailed at flat-size rates. Some commenters asked 
us to better describe the amount of force used during the flexibility 
test. In response to these comments we revised the standards to change 
the point where pressure is applied to 1 inch from the extended outer 
edge, and we added a requirement that the piece must pass the test when 
extended from both ends. This new test more specifically identifies the 
types of pieces that will not process efficiently on our automated flat 
sorting equipment or handle efficiently in delivery. We will advise our 
employees to use a steady pressure that stops short of breaking the 
mailpiece or its contents. When they begin to feel resistance due to 
rigidity, the pressure should be stopped at that point.
    Three commenters stated that, when describing the flexibility test, 
the phrase ``damage to the mailpiece'' is too subjective and could be 
interpreted to mean even a crease in the binding of a

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magazine or catalog. We do not consider a crease in the binding to be 
damage to the mailpiece. Generally magazines, catalogs, and similarly 
bound mailpieces will meet our flexibility standards, unless they 
contain rigid enclosures or attachments, or they are placed in rigid 
packaging. We will instruct acceptance employees to exclude ordinary 
magazines, catalogs, and similarly bound publications from the new 
flexibility test. Mailers should note that boxes generally are not 
acceptable for efficient flats processing and delivery and would likely 
fail the flexibility test.
    Several commenters asked us to clarify the uniform thickness 
standard that we proposed to expand to all flat-size mail. In response 
to these comments, we relaxed the current definition and redefined 
``uniform thickness'' in DMM 301.1.5 to allow for a variation in 
thickness up to \1/4\ inch with selvage limitations.
    Three commenters were concerned that the deflection test for flimsy 
automation flats might be too strict, and they asked us to clarify the 
test. In response to these comments, we revised the deflection test to 
allow deflection (``droop'') to within 1 inch of the extended length, 
with a maximum deflection of 4 vertical inches. An 8-inch-long piece, 
extended out 4 inches, could deflect down as far as 3 inches and still 
be an automation-compatible flat. Pieces that fail the deflection test 
still may be eligible for nonautomation flat-size rates. At this time, 
the deflection test does not apply to enhanced carrier route (ECR) 
flats.
    To further clarify the standards for flexibility and deflection, we 
are developing illustrations for the DMM that show how the tests are 
applied.
    Sixteen commenters requested clarification about the new Not Flat-
Machinable category of Standard Mail. We clarified the definition of a 
Not Flat-Machinable piece as follows:
    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.)
    Almost all Not Flat-Machinable pieces will fall within this 
definition. But Not Flat-Machinable pieces are also:
    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.
    Or nonmachinable letter-size pieces weighing more than 3.3 ounces, 
unless they qualify to be mailed at automation flat-size rates.
    We created a decision tree to further help mailers determine if a 
piece is Not Flat-Machinable. We will publish the decision tree in the 
DMM Advisory and in a new Quick Service Guide for Not Flat-Machinable 
mail. The DMM Advisory message board and the Quick Service Guides are 
available on Postal Explorer at pe.usps.com. You can receive DMM 
Advisory updates via e-mail by sending a message to 
dmmadvisory@usps.com (indicate ``subscribe'' in the subject line).

    One commenter asked us to allow Bulk Parcel Return Service (BPRS) 
for returns of Not Flat-Machinable pieces. BPRS is available only for 
Standard Mail machinable parcels. We are not proposing to extend BPRS 
to Not Flat-Machinable pieces.
    One commenter noted different preparation standards for NFMs 
weighing 6 ounces or more and NFMs weighing less than 6 ounces, stating 
that lighter pieces would be prepared as flats. Our preparation and 
labeling standards will direct NFMs to the appropriate processing 
facilities. The proposed preparation of NFMs 6 ounces or more mirror 
the preparation of Standard Mail machinable parcels that are 
efficiently processed at BMCs. The proposed preparation of NFMs under 6 
ounces mirror the preparation of Standard Mail irregular parcels that 
are efficiently processed at ADCs.
    One commenter noted that reconfiguring packaging is not a solution 
for rigid pieces that are more than .75 inch thick. Rigid pieces and 
pieces more than .75 inch thick cannot be processed efficiently on AFSM 
100s. Our pricing proposal encourages mailers to reconfigure packaging 
to create flexible pieces less than .75 inch thick--for example, by 
redistributing contents within longer packaging.
    The same commenter asked us to reassure mailers that our standards 
will not change after they invest in new equipment, and asked us to 
outline our plans for the NFM category of mail. We do not plan to 
categorize rigid pieces as flats because these pieces negatively impact 
delivery and processing operations. We will work with mailers to ensure 
that their pieces can be effectively and efficiently processed and 
delivered. The goal of the NFM category over time is to provide 
financial incentives to create automated flats or machinable parcels. 
The NFM category may be temporary if it achieves this goal.
    We received 310 comments opposing the Not Flat-Machinable prices on 
behalf of three organizations that mail children's books. These 
commenters were concerned with the potential negative impact on the 
organizations' objectives due to the rate increase. This objection to 
the new rates is outside the scope of our mailing standards proposal. 
We encourage mailers to reconfigure their mailpieces to meet the new 
standards for automation flats.
    Four commenters asked for a lower minimum weight for Standard Mail 
machinable parcels. We will address their request separately from this 
rate case proposal.
    Two commenters noted a discrepancy at the 3-digit level between the 
proposed standards for irregular parcels and the proposed standards for 
Not Flat-Machinable pieces less than 6 ounces. We revised the proposal 
to require 3-digit sorting for both types of pieces.
    One commenter asked us to clarify the standards for bundling 
parcels for destination delivery unit (DDU) entry. We require bundling 
only for Standard Mail irregular parcels mailed at an ECR rate to 
sequence carrier route mail in either line-of-travel or walk-sequence 
order.
    Two commenters asked us to keep the processing category name 
``irregular parcels'' rather than change it to ``nonmachinable 
parcels.'' To avoid confusion for customers, we will retain the name 
``irregular parcels,'' and we made the appropriate changes throughout 
the standards.
    One commenter noted we referenced the wrong labeling lists for area 
distribution center (ADC) and mixed ADC labeling for irregular parcels. 
We appreciate this comment. We corrected the labeling standards to 
reference labeling lists L603 and L604.
    As we summarized in First-Class Mail, six commenters asked for 
clarification on our definition of a ``full'' letter tray, and one 
commenter requested some tolerance when trays are not quite filled to 
85 percent capacity. Vendors commonly set presort software parameters 
at 85 percent capacity today, and most software includes defaults to 
that setting. Because fuller trays will help reduce costs and keep 
postage rates stable, we proposed this change to signal all mailers to 
set their software for trays that are 85 percent full. Acceptance 
personnel will continue to work with mailers when they identify trays 
that appear less than full, as they do today, so adjustments can be 
made on future mailings.

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    Also as summarized in First-Class Mail, 10 commenters requested 
clarification of the no-overflow tray option for automation letters. 
One commenter asked us to emphasize that presort bureaus likely will 
not use the option for combined mailings. Three commenters asked that 
we allow mailers to implement the no-overflow tray option selectively 
within a mailing.
    We have been working with software vendors to identify different 
mail preparation scenarios and how presort software will handle them. 
We encourage mailers to use the option by clarifying that pieces moved 
back to a higher tray level will count toward the 150-piece requirement 
for the qualifying rate level. We acknowledge that the option may not 
be realistic in all mailing environments and emphasize that it is an 
option. We have adopted the commenters' proposal to allow mailers to 
selectively apply the option by 3-digit or AADC destinations in any 
single mailing, and we modified the standards to reflect this change.
    One commenter asked us to allow full tray preparation for ECR 
letters to all 5-digit destinations, and for pieces weighing over 3 
ounces. In response to this comment, we simplified the standards to 
require the same tray preparation for all automation-compatible, 
barcoded pieces up to 3 ounces, regardless of ZIP Code destination. We 
retained the 3-ounce weight limit because our experience and testing 
show that heavier pieces processed sequentially will slow our 
processing operations.
    Another commenter expressed concern about allowing mailers to drop 
ship ECR letters to DDUs, because we would likely backhaul this mail to 
upstream processing facilities. We eliminated the DDU entry discount 
for Standard Mail letters because we often do backhaul this mail. We 
retained a destination sectional center facility (DSCF) entry discount 
for local mailers of small quantities and for letters with simplified 
addresses.
    One commenter requested that the Postal Service not process 
enhanced carrier route saturation (ECRWSS) flats on automated equipment 
and that we should not apply the flexibility, rectangular, and uniform 
thickness standards to ECRWSS flats. As a reminder, current standards 
require most mailpieces up to \1/4\ inch thick to be rectangular, 
including ECRWSS flats. Also, most pieces mailed at ECRWSS rates are 
not rigid and would meet the revised uniform thickness standards that 
allow up to \1/4\ inch variation in thickness. Nonrectangular, rigid, 
or lumpy pieces generally are more problematic for our delivery 
operations. Therefore, we are retaining similar physical standards for 
all flat-size mailpieces.

Periodicals Comments

    Two commenters objected to the $0.85 Outside-County container rate, 
stating that it was too expensive for many mailers. This objection to 
the new rate structure is outside the scope of our mailing standards 
proposal.
    Two commenters asked us to clarify how the Outside-County container 
rate is applied. We revised the standards in DMM 707.1.1.3 and 
707.1.2.3 to clarify how the $0.85 rate applies to sacks, trays, and 
pallets of Periodicals mail.
    Two commenters objected to the application of the Outside-County 
container rate to containers of mixed class or mixed In-County and 
Outside-County pieces. The commenters would like us to prorate the 
charge to reflect only the percentage of Periodicals Outside-County 
mail in that mixed container. For example, if a sack contained 50 
percent In-County mail and 50 percent Outside-County mail, the mailer 
would pay half of the $0.85 charge for that sack.
    The container rate will help us cover our costs for handling 
Outside-County Periodicals mail. Our intent is to improve efficiency 
and alleviate pressure on Periodicals processing costs. We note that 
the container rate is an integral part of the new Periodicals pricing; 
we mitigated the price increase of the piece and pound rates to allow 
for the addition of the Outside-County container rate. To avoid 
imposing the Outside-County pricing structure on In-County Periodicals 
mail, we revised the standards to exempt carrier route, 5-digit carrier 
routes, and 5-digit/scheme containers of mixed In-County and Outside-
County pieces from the container charge.
    Four commenters objected to the options we proposed for paying the 
Outside-County container rate in a comailing environment. Initially we 
proposed that consolidators report the charge on one publisher's Form 
3541, or report and pay on one consolidated statement, Form 3541-C. 
Three commenters asked us to allow a consolidator to prorate the 
container charge on each individual postage statement. The commenters 
felt that this method would most accurately allot the appropriate 
charge to each mailer and would avoid a situation where the 
consolidator must pay the charge and bill mailers after the mailing is 
entered. One commenter noted possible ramifications for sales taxes.
    We added a third option to allow consolidators to prorate the 
container charge on each postage statement in the pool if they 
electronically submit their qualification report using Mail.dat. We 
provide the new standards and all options for calculating and paying 
the Outside-County container charge in DMM 707.2.2.7 and 707.16.4.
    Two commenters asked us to clarify our standards for Periodicals 
automation flats. The standards for Periodicals automation flats are 
essentially unchanged. We reorganized the current UFSM 1000 criteria 
into the Periodicals standards in the DMM to reflect that this 
alternative preparation for automation flats is still available for 
Periodicals mail. This alternative allows Periodicals mailers to 
continue to claim automation rates based on the current UFSM 1000 
criteria. We clarified the standards in DMM 707.25.3.1 to specify that 
they are an exception to the standards in DMM 301.3.3 for Periodicals 
flat-size mail.
    One commenter asked us to expand and clarify the standards for 
polywrap seam placement on Periodicals mail. While we are not changing 
the standards for seam placement, we simplified and clarified the 
polywrap standards for all types of automation-rate flats, including 
Periodicals flats, in a Federal Register notice on January 5, 2007 (72 
FR 468).
    One commenter requested new mailing standards to allow comailing of 
mixed-class mail. We note the commenter's request, and we will provide 
the new standards in a separate rulemaking. Comailing of mixed-class 
mail is outside the scope of this proposal.

Package Services Comments

    Three commenters opposed eliminating the single-piece Bound Printed 
Matter (BPM) rate for retail customers. Our proposal is designed to 
simplify options at the retail counter. Mailers still may use Express 
Mail, Priority Mail, Parcel Post, and Media Mail services in any post 
office. BPM is essentially a bulk service, and customers can mail 
residual pieces at nonpresorted BPM rates using PC Postage, meter 
postage, and adhesive stamps. Mailers can deposit nonpresorted BPM 
pieces in a collection box or with their letter carrier.

Priority Mail Comments

    Two commenters supported our overall efforts to align prices with 
costs but expressed concern that dimensional-weight pricing may be too 
complex for some customers. Dimensional weighting is an industry-wide 
practice used by

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UPS, FedEx, DHL, and other postal administrations such as Canada Post 
and Australia Post. Many mailers are generally familiar with 
dimensional weighting. Retail customers can bring Priority Mail parcels 
to any post office and (if necessary) we will weigh, measure, and 
compute postage for them. Our Point of Service (POS) terminals will 
determine whether to base the postage on the actual weight or the 
dimensional weight of the piece and will calculate the correct price.
    One commenter suggested that we clarify what we mean by ``rounding 
off'' and ``rounding up'' when determining dimensional-weight pricing. 
We appreciate this suggestion and added references in the Priority Mail 
standards to the ``Rounding Numerical Values'' information in DMM 
604.8.0.
    One commenter expressed concern that dimensional-weight pricing 
will add complexity to retail transactions, especially in smaller post 
offices that lack computerized scales and terminals. We are developing 
a comprehensive communications and training plan to ensure all 
employees can efficiently determine postage for Priority Mail.

Extra Services Comments

    Two commenters stated that the proposed structure for Confirm 
eliminates the unlimited use option and, although the fee declines with 
volume, mailers who use Confirm the most will pay the highest increase. 
This objection to the new rate structure is outside the scope of our 
mailing standards proposal.
    One commenter asked us to explain how we would implement the new 
Confirm prices and how we would give credit for existing subscriptions. 
We are considering options to provide full value for customers 
currently participating in Confirm. Alternatives include 
``grandfathering'' current prices and subscriptions until their 
scheduled expirations, or terminating current subscriptions and 
crediting forward the full value of any remaining time and unused scans 
associated with those subscriptions.

Addressing Comments

    We received two comments encouraging us to adopt move update 
requirements for other than First-Class Mail to improve address quality 
and reduce undeliverable-as-addressed mail. We will continue to tighten 
address quality standards, but expanding the move update requirements 
is not a part of this proposal.
    Several commenters asked that we move the proposed ZIP+4 
requirements for all letters and flats out of the rate case proposal 
and handle them in a separate rulemaking. We wanted to provide advance 
notice but will provide details in a separate rulemaking.
    Two commenters asked us to publish a notice for comment if we ever 
planned to expand the use of simplified addressing for city routes. 
Simplified addressing for city routes is outside the scope of this 
proposal.

Major Changes Since the September Proposal

First-Class Mail Changes

    We added language to DMM 235.6.0 to clarify that the no-overflow 
option for First-Class Mail automation letters applies to pieces placed 
in the next tray level when a tray of 150 or more pieces can be made. 
We changed the application of the no-overflow option in DMM 235.6.0 to 
allow mailers to apply it selectively for letters to 3-digit and AADC 
destinations. We clarify that pieces that move back to a higher tray 
level count toward the 150-piece requirement for the rate level.
    We relaxed the flexibility test in DMM 101.2.0 and 301.1.0 for all 
flat-size mail to apply pressure within 1 inch of the extended ends. We 
modified the uniform thickness standard in DMM 101.2.0 and 301.1.0 for 
all flat-size mail to allow for up to \1/4\-inch variance in thickness. 
We also relaxed the deflection test in DMM 301.3.0 for automation flats 
by allowing deflection to within 1 inch of the extended length, with a 
maximum vertical drop of 4 inches.
    We made 5-digit/scheme preparation optional for First-Class Mail 
presort parcels to be consistent with Standard Mail parcel preparation. 
We added new standards in DMM 402.4.3 for placing POSTNET barcodes on 
First-Class Mail parcels. Mailers must place the POSTNET barcode on the 
address side, at least \1/8\ inch from all edges of the piece. We 
revised ADC rate eligibility in DMM 433.4.3 to include presorted 
parcels in 3-digit origin/entry sacks and parcels in ADC sacks.

Standard Mail Changes

    We added an option to allow mailers to prepare origin entry 3-
digit/scheme trays and sacks for Standard Mail letters, flats, and 
parcels. The original proposal required origin entry 3-digit/scheme 
trays for automation letters but did not provide an option for other 
letters or for flats and parcels. Our revision gives mailers the option 
to make separate trays or sacks of mail when they have even a small 
quantity of mail for each 3-digit or 3-digit scheme ZIP Code area 
processed by the sectional center facility (SCF) servicing the origin 
or entry office.
    We clarified in DMM 245.7.0 that the no-overflow option for 
automation letters applies to pieces placed in the next tray level when 
a full tray or a tray of 150 or more pieces can be made. We changed the 
application of the no-overflow option in DMM 245.7.0 to allow mailers 
to apply it selectively for letters to 3-digit and AADC destinations.
    We expanded full-tray preparation in DMM 245.6.7 for barcoded 
carrier route letters (up to 3 ounces) sorted to all destinations, 
instead of those ZIP Codes receiving a DPS sort (ZIP Codes with ``C'' 
and ``D'' indicators in the USPS City State Product).
    We clarified the definition of a Not Flat-Machinable piece in DMM 
401.2.2.2. We clarified in DMM 243.3.0 that mailers must mark 
nonmachinable letters over 3.3 ounces that pay Not Flat-Machinable 
rates as ``Not Flat-Machinable'' or ``NFM.'' We also refer to these 
marking requirements in DMM 402.
    We relaxed the flexibility test in DMM 301.1.0 for all flat-size 
mail to apply pressure within 1 inch of the extended ends. We modified 
the uniform thickness standard in DMM 301.1.0 for all flat-size mail to 
allow for up to \1/4\-inch variance in thickness. We also relaxed the 
deflection test in DMM 301.3.0 for automation flats by allowing 
deflection to within 1 inch of the extended length, with a maximum 
vertical drop of 4 inches.
    We revised the standards for sorting irregular parcels and Not 
Flat-Machinable pieces under 6 ounces to require 3-digit sorting. We 
also made 5-digit and 5-digit scheme sorting optional but required for 
the 5-digit rate for all Standard Mail parcels and Not Flat-Machinable 
pieces. We removed the facing and loose packing requirements for 
irregular parcels in DMM 445.5.4.3.
    We provided alternative labeling lists--L004 and L009--for 
irregular parcels over 2 ounces (except for rolls and tubes) sorted to 
ADCs and mixed ADCs. We corrected the standards for other irregular 
parcels labeled to ADCs and mixed ADCs to reference labeling lists L603 
and L604.
    We added new standards in DMM 402.4.3 for the placement of POSTNET 
barcodes on Not Flat-Machinable pieces. Mailers must place the POSTNET 
barcode on the address side, at least \1/8\ inch from all edges of the 
piece. We also revised standards to apply the barcoding requirements 
for parcels to Not Flat-Machinable pieces with parcel barcodes.

[[Page 2095]]

Periodicals Changes

    We revised the standards in DMM 707.1.1.3 and 707.1.2.3 to clarify 
how the $0.85 Outside-County container rate applies to trays, sacks, 
and pallets of Periodicals mail. We also exempt mixed containers of In-
County and Outside-County pieces in carrier route, 5-digit carrier 
routes, and 5-digit/scheme containers from the $0.85 charge.
    We added an option to allow consolidators to prorate the Outside-
County container charge on each mailer's postage statement in a mailing 
pool if they electronically submit a qualification report using 
Mail.dat. We provide the new standards and all options for calculating 
and paying the Outside-County container charge in DMM 707.2.2.7 and 
707.16.4. We also added new requirements for standardized documentation 
in 708.1.2.
    We reorganized the current UFSM 1000 criteria into the Periodicals 
standards in the DMM to reflect that this alternative preparation for 
automation flats is still available for Periodicals mail. This 
alternative allows Periodicals mailers to continue to claim automation 
rates based on the current UFSM 1000 criteria. We clarified the 
criteria for automation flats in DMM 707.25.3.1 to specify that these 
standards are an exception to DMM 301.3.3 for Periodicals flat-size 
mail.

Updated Summary by Class of Mail

Summary of First-Class Mail

    Our proposal introduces prices based on the shape of mail and our 
relative costs, with separate prices for letters, flats, and parcels. 
As shape becomes more important, weight becomes less important, and our 
proposal reduces prices for many letter-size pieces over 1 ounce.
    The single-piece 1-ounce First-Class Mail letter price will 
increase $0.03, to $0.42, and the single-piece card price also will 
increase $0.03, to $0.27. The additional-ounce price will decrease 
$0.04, to $0.20.
    We propose a forever stamp to make future price changes more 
convenient for consumers. The postage value of the forever stamp will 
equal the First-Class Mail single-piece 1-ounce letter rate at any time 
in the future, without the addition of extra postage.
    Our pricing proposal will eliminate the nonmachinable surcharge. 
Instead, a letter-size mailpiece with nonmachinable characteristics 
will pay the flat-size price. Our additional handling costs are 
included in the proposed 1-ounce flat-size price, so no surcharge is 
necessary. To qualify for letter rates, the maximum weight for letter-
size pieces will be 3.5 ounces.
    The additional-ounce price for automation letters will decrease 
from $0.237 to $0.155. We will maintain the 150-piece minimum tray 
preparation requirement for automation First-Class Mail letters and 
cards. Sort levels will be 5-digit/scheme, 3-digit/scheme, 3-digit 
origin, AADC, and mixed AADC. We propose a simplified letter mail 
preparation for machinable letters, requiring mailers to sort only to 
the origin 3-digit, AADC, and mixed AADC levels. We propose to 
eliminate the carrier route automation preparation since it provides 
little value for our processing operations.
    To ensure automated processing of flat-size mail, we will require 
all flats to be rectangular. The physical standards for automation 
flats will be the criteria for AFSM 100 pieces, with new standards for 
flexibility. We also propose to lessen and simplify the deflection 
standard.
    To help reduce the number of ``air trays'' and the overall costs of 
handling mail in letter trays, we propose a no-overflow tray option for 
automation letters. In addition, to encourage fuller trays, we propose 
to 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 
full.
    The structure for discount parcels includes new workshare prices. 
The proposed rate levels are 5-digit, 3-digit, ADC, and single piece. 
To simplify the preparation of First-Class Mail parcels, we propose to 
make the preparation of 5-digit sacks optional. We will require at 
least 10 pounds of parcels for 5-digit sacks, 3-digit sacks, and ADC 
sacks. Remaining pieces sorted to a mixed ADC sack will pay the single-
piece First-Class Mail parcel price.
    Barcodes help processing on APPS, and we will give mailers the 
option of applying either a 5-digit UCC/EAN 128 or a POSTNET barcode on 
presorted parcels. Unless prepared in 5-digit/scheme containers or paid 
at the single-piece rates, we will apply a surcharge to all parcels 
that are not barcoded or weigh less than 2 ounces, or to irregularly 
shaped parcels such as triangles, tubes, rolls, and similar pieces.

Summary of Standard Mail

    Our proposed 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.
    Automation letter sort levels will be 5-digit/scheme, 3-digit/
scheme, AADC, and mixed AADC. We propose a simplified preparation to 
allow mailers of machinable letters to sort only to the AADC and mixed 
AADC levels. Mailers will have the option to prepare origin 3-digit 
trays for automation and machinable letters.
    Nonmachinable letter sort levels will be 5-digit, 3-digit, ADC, and 
mixed ADC. Mailers will have the option to prepare origin 3-digit trays 
for nonmachinable letters. We will replace the nonmachinable surcharge 
with a separate rate structure for nonmachinable letters up to 3.3 
ounces. Nonmachinable letters over 3.3 ounces will pay the Not Flat-
Machinable rate or automation flat-size rate, if the pieces meet the 
standards for automation flats.
    DDU entry rates will not be available for ECR letters. However, we 
will allow DSCF entry rates for DDU entry of some enhanced carrier 
route letters, including letters with simplified addresses and locally 
entered small-volume mailings. We will eliminate ECR automation basic 
rates because this preparation has little value for our mail processing 
operations.
    To help reduce the number of ``air trays'' and the overall costs of 
handling mail in letter trays, we propose a no-overflow tray option for 
automation letters. In addition, to encourage fuller trays, we propose 
to 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 
full.
    The physical standards for automation flats will retain most of the 
criteria for AFSM 100 pieces, with new standards for flexibility. This 
change will maximize the number of flats we can process in automated 
operations and deliver as flats. We propose to relax the current 
deflection standard to better define the types of pieces we can 
currently process on our AFSM 100 automated flat processing equipment.
    For consistency, we propose to increase the maximum size for 
carrier route flats so that the same maximum size applies to all flats, 
regardless of the rate paid. We will expand the current requirements 
for automation flats to all flat-size pieces to be rectangular and 
uniformly thick. We also provide a new, relaxed definition of 
``uniformly thick'' to better define the types of pieces we can process 
on our automated flat processing equipment and handle efficiently at 
delivery.
    Our proposal includes a new Not Flat-Machinable classification for 
rigid flat-size pieces and pieces that are currently claiming 
automation flat rates based on

[[Page 2096]]

UFSM 1000 standards. We propose no bundling for most Not Flat-
Machinable pieces and to have mailers prepare pieces in 5-digit/scheme, 
3-digit, ADC/bulk mail center (BMC), and mixed ADC/BMC containers. To 
simplify the preparation of Not Flat-Machinable pieces, we propose to 
make the 5-digit/scheme level optional. To give mailers access to 
deeper discounts, we propose 5-digit rates for 5-digit bundles prepared 
on pallets. In addition, we propose a DDU entry discount for Not Flat-
Machinable pieces sorted to 5-digit destinations when drop shipped 
directly to the DDU. There will be no minimum quantity for Not Flat-
Machinable pieces drop shipped to DDUs. Barcodes help processing on 
APPS, and we will give mailers the option of applying either a 5-digit 
UCC/EAN 128 or a POSTNET barcode on pieces under 6 ounces. Unless 
prepared in 5-digit/scheme containers, we will apply a surcharge to all 
Not Flat-Machinable pieces that are not barcoded.
    We propose to eliminate the residual shape surcharge for Standard 
Mail parcels and replace it with a separate rate structure. We will no 
longer offer a $0.03 machinable barcode discount. Instead, parcel 
prices will include a requirement for barcodes. Unless prepared in 5-
digit containers, we will apply a surcharge to all parcels that are not 
barcoded.
    We will remove the bundling requirement for all Standard Mail 
irregular parcels except ECR pieces. We propose to reduce the required 
minimum quantity of irregular parcels in sacks to 10 pounds per sack.
    We propose four new options for mailers to combine parcels. We 
propose commingling Standard Mail and Package Services machinable 
parcels, irregular parcels, and the new Not Flat-Machinable pieces in 
5-digit containers. We would allow mailers to combine Not Flat-
Machinable pieces under 6 ounces with irregular parcels in 3-digit, 
ADC, and mixed ADC containers. We would allow mailers to combine Not 
Flat-Machinable pieces weighing 6 ounces or more with machinable 
parcels in BMC/ASF and mixed BMC containers. We would also allow 
mailers to combine Standard Mail parcels, NFMs, machinable Parcel 
Select, and BPM parcels in 3-digit containers to certain ZIP Codes when 
entered at designated SCFs.
    The DDU discount currently is available only for pieces sorted to 
carrier routes. To give mailers access to deeper destination entry 
discounts, we will allow a DDU entry discount for parcels sorted to 5-
digit destinations when drop shipped directly to the DDU. There will be 
no minimum for the quantity of parcels drop shipped to a DDU.
    Customized MarketMail is a type of Standard Mail that allows 
business mailers to send distinctive, unusually shaped advertising 
pieces to their customers. Mailers will still have the option to use 
Customized MarketMail. Rates will equal the nonentry 5-digit rate for 
Not Flat-Machinable pieces.
    Mailers still will have the option of using detached address 
labels. To help cover our handling costs, we propose a new $0.015 
charge for detached address labels with ECR saturation flat-size 
pieces. Mailers who prepare mail with addresses on their mailpieces 
will avoid the new charge.

Summary of Periodicals

    Our proposed Periodicals prices encourage mailers to use pallets 
rather than sacks. We also enhance drop ship incentives to encourage 
mailers, including publishers of high-editorial-content publications, 
to enter Outside-County mail closer to its destination. Our proposal 
will also make the experimental copalletization standards a permanent 
option for mailers.
    Our pricing proposal includes a new $0.85 Outside-County container 
rate. We will apply the container rate to any pallet, sack, or tray of 
Outside-County Periodicals mail, except for mixed containers of In-
County and Outside-County pieces in carrier route, 5-digit carrier 
routes, and 5-digit[bs]scheme containers. We also 
propose new drop ship prices based on nonadvertising pounds, in 
addition to increased per-piece drop ship discounts.
    To encourage fuller letter trays, we propose to 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 full.

Summary of Package Services

    Package Services includes Parcel Post, Bound Printed Matter, Media 
Mail, and Library Mail. Our proposal simplifies Package Services 
offerings and encourages 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 our proposal, we will charge parcels 
weighing less than 20 pounds and measuring more than 84 inches in 
combined length and girth the 20-pound rates.
    We will incorporate the current $0.03 barcode discount available 
for machinable Parcel Select destination bulk mail center (DBMC) entry 
mail into the price and we will require a barcode. Nonbarcoded 
machinable pieces could claim only the applicable Intra-BMC/ASF rate.
    We do not propose any changes to mail preparation standards for 
Parcel Select.
Bound Printed Matter
    We will rename single-piece Bound Printed Matter ``nonpresorted'' 
Bound Printed Matter, and we will 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 
or give them to their letter carrier. We will increase the $0.08 
discount from the parcel price for flat-size pieces to $0.16. We will 
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 propose to require 5-digit/scheme and 3-digit/
scheme bundles and 5-digit/scheme sacks for presorted flat-size Bound 
Printed Matter. We propose to require 5-digit/scheme bundles for 
irregular parcels that weigh less than 10 pounds each and 5-digit/
scheme sacks for machinable and irregular parcels.
Media Mail and Library Mail
    To reduce sacks, we propose to require 5-digit/scheme and 3-digit/
scheme bundles and 5-digit/scheme sacks for presorted flat-size Media 
Mail and Library Mail. We propose to require 5-digit/scheme bundles for 
irregular parcels and 5-digit/scheme sacks for machinable and irregular 
parcels.

Summary of Priority Mail

    We continue to offer convenience in Priority Mail. The USPS-
produced flat-rate envelope still will pay the 1-pound price, $4.65 
under the proposal, regardless of weight or destination. USPS-produced 
flat-rate boxes will pay $8.80 under the proposal, regardless of weight 
or destination, and will become a permanent offering. Prices for all 
Priority Mail pieces weighing over 25 pounds will decrease for all 
zones, many by as much as 20 percent.
    Currently, we charge Priority Mail pieces weighing less than 15 
pounds and measuring more than 84 inches in combined length and girth 
the 15-pound rates (``balloon rate''). Under the proposal, we will 
charge Priority Mail pieces weighing less than 20 pounds and measuring 
more than 84 inches in

[[Page 2097]]

combined length and girth the 20-pound rates. We will apply the new 
balloon rate only to pieces addressed for local delivery and to zones 
1-4.
    Priority Mail pieces that exceed 1 cubic foot and are addressed to 
zones 5-8 could be subject to a new dimensional-weight price. We will 
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 will 
calculate dimensional weight using one of two formulas, one for 
rectangular and one for nonrectangular pieces.

Summary of Express Mail

    Express Mail pieces often contain material that ranges from a half 
pound to 2 pounds. Currently, these pieces pay the 2-pound price. To 
keep Express Mail a viable alternative for mailers, the pricing 
proposal adds a new 1-pound price.
    The flat-rate envelope will continue to pay 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 propose 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 proposal seeks to modernize our services, improve address 
quality, and reduce undeliverable-as-addressed mail.
    We will decrease the price for Address Change Service electronic 
option for First-Class Mail from $0.21 to $0.06. We will increase the 
price for all other classes of mail from $0.21 to $0.25. We will 
decrease the price for Manual Address Correction Service for all 
classes of mail from $0.75 to $0.50.
    A new automated option for Address Change Service will allow First-
Class Mail letters to receive the first two notices at no charge, then 
each additional notice for $0.05 each. Standard Mail letters will 
receive the first two notices at $0.02, then each additional notice for 
$0.15 each. This new option will require mailers to use the new 4-State 
Customer Barcode.
    We propose to change the fee structure for Confirm service from the 
Silver, Gold, and Platinum tiers to a unit-based structure. Customers 
will pay standardized annual fees and purchase blocks of units that are 
redeemed for Confirm scans. Customers can redeem units at the rate of 
one unit per First-Class Mail scan or five units per scan for any other 
class of mail. The cost per block of units declines as volume 
thresholds are reached.
    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 proposal will also realign the Caller 
Service fees.
    We propose price changes for Address Sequencing Service, Mailing 
List Service, Permit Imprint fees, Pickup on Demand service, Premium 
Forwarding Service, Shipper Paid Forwarding, Stamped Cards, Stamped 
Envelopes, and all annual mailing fees.
    We provide the updated DMM standards, and how they are applied for 
each type of mail, below.
    Although we are exempt from the notice and comment requirements of 
the Administrative Procedure Act (5 U.S.C 410 (a)), we invite your 
comments on the following proposed revisions 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 Part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.
    Accordingly, 39 CFR Part 111 is proposed to be amended as follows:

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    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 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 Rigid Pieces

    Flat-size pieces must be flexible. Test flexibility 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.
    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 without being damaged.
    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.
    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 without being damaged.

[[Page 2098]]

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. (Do not consider the selvage when measuring 
variance in thickness.) If the contents are significantly smaller than 
the envelope, wrapper, or sleeve, mailers must secure those 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 pay 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 with one or more of the nonmachinable 
characteristics in 1.2 are subject to the applicable postage for a 
flat-size piece, 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.

1.3 Minimum Rate for Parcels to Zones 1-4

    [Revise 1.3 as follows:]
    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 
604.8.0) each measurement to the nearest whole number.
    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 604.8.0) 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 604.8.0) each measurement to the nearest 
whole number.
    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 and round up (see 604.8.0) 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.

[[Page 2099]]

1.5.1 Flat-Rate Boxes--Rate and Eligibility
    Each USPS-produced Priority Mail flat-rate box is charged $8.80, 
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 
$4.65, 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 and letter-size pieces with one or more of the 
nonmachinable characteristics in 101.1.2.
    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.
* * * * *
    [Delete current 1.9, Nonmachinable Surcharge, and 1.10, 
Applicability of Nonmachinable Surcharge. Renumber current 1.8 as new 
1.9 and revise to remove references to nonmachinable surcharge in the 
first three sentences as follows:]

1.9 Keys and Identification Devices

    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 current 1.7, Rates for Keys and Identification Devices, 
as new 1.10.]
* * * * *
    [Restructure the rate tables in 1.4 through 1.6 into new 1.4 
through 1.8 for separate letter, flat, and parcel rates.]
* * * * *

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 $3.62 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay 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 pay 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 $1.85 nonmachinable surcharge. Regardless of 
weight, a parcel with any of the characteristics in 101.7.2, 
Nonmachinable Parcel Post Standards, must pay 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) 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

* * * * *

[[Page 2100]]

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 3.5 ounces (0.2188 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 3.5 ounces.
* * * * *
    [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 pieces eligible for and mailed at card 
rates) with one or more of the nonmachinable characteristics in 2.1 are 
subject to the rates for flat-size pieces (see 333.1.0).
    [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 high-density and saturation rates 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 a 4-State 
Customer 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; 1.14, Carrier Route 
Automation Letters; and 1.16, Nonmachinable Surcharge. Renumber 1.15, 
Summary Presorted, Automation, and Carrier Route Rates for Cards and 
Letters, as new 1.13. Renumber 1.17 through 1.19 as new 1.14 through 
1.16.]
* * * * *

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.
* * * * *

4.0 Additional Eligibility Standards for Nonautomation First-Class Mail 
Letters

* * * * *
    [Revise heading of 4.3 as follows:]

4.3 Letters With Nonmachinable Characteristics

    [Revise 4.3 to delete nonmachinable surcharge as follows:]
    Letters with one or more of the nonmachinable characteristics in 
201.2.1 must pay the flat-size rate. In addition to the standards in 
3.0, Basic Standards for First-Class Mail Letters, all pieces in a 
First-Class Mail Presorted nonmachinable letter-size mailing must be 
marked, sorted, and documented according to 235.5.3, Nonmachinable 
Preparation.
    [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:]

[[Page 2101]]

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.]
* * * * *

234 Postage Payment and Documentation

* * * * *

2.0 Postage Payment for Presorted Letters

* * * * *

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 delete the reference to the 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 any additional ounces or extra services.
* * * * *

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 item e to delete the last sentence.]
* * * * *

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

* * * * *
5.2.2 Traying and Labeling
    [Delete item a about labeling the 5-digit tray. Renumber items b 
through d

[[Page 2102]]

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; 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

* * * * *

1.7 Computing Postage for Standard Mail

* * * * *
1.7.8 Discount for Heavy Automation Letters
    [Revise 1.7.8 to delete the second-to-last sentence, about 
automation ECR.]
* * * * *
    [Delete 1.7.10, 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 high-density or saturation 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

* * * * *

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:

[[Page 2103]]

    [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 pay 
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/scheme 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. 
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.
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. Regular and 
Nonprofit mailings must meet separate minimum volumes.
* * * * *
6.1.3 Maximum Weight for Enhanced Carrier Route Letters
    [Revise 6.1.3 to delete the reference to automation carrier route 
as follows:]
    Maximum weight for Standard Mail Enhanced Carrier Route high-
density and saturation 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 as 
follows:]
    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.
* * * * *
    [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

[[Page 2104]]

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 Presorted 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.
* * * * *
    [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.]
* * * * *
    [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/scheme (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: * * *
* * * * *

[[Page 2105]]

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 introductory 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 and delivery-point barcoded, prepare trays 
according to 6.6. For ECR automation-compatible letters that are 
delivery-point barcoded and that weigh up to 3 ounces, prepare trays 
under 6.7. Preparation sequence, tray size, and labeling:
* * * * *
    [Renumber 6.7 through 6.9 as new 6.8 through 6.10. Insert 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, 
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

[[Page 2106]]

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 prepared with simplified addresses under 
602.3.2 or mailers hold a mailing permit at the entry office and 
deposit only one mailing (of fewer than 2,500 pieces) per day. See 5.2 
for additional DSCF rate eligibility for letters.
* * * * *

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 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.
* * * * *

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.
    [Revise 1.2 to change the determination of the length of flats as 
follows:]

1.2. Length and Height of Flats

    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 Criteria for Rigid Pieces

    Flat-size pieces must be flexible. Test flexibility 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.
    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 without being damaged.
    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.
    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 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. (Do not consider the selvage when measuring 
variance in thickness.) If the contents are significantly smaller than 
the envelope, wrapper, or sleeve, mailers must secure those 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 pay 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 pay 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-

[[Page 2107]]

Machinable pieces and pay 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 pay the applicable parcel rate.
* * * * *

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 and the eligibility standards for the class of mail 
and rate claimed. Pieces prepared with polywrap film must meet the 
standards in 3.4.
    [Delete 3.2]
    [Renumber 3.3. through 3.8 as new 3.2 through 3.7]
    [Revise heading of new 3.2 as follows:]

3.2 Additional Criteria for Automation Flats

    [Revise the heading and text of 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:
    1. Minimum height is 5 inches. Maximum height is 12 inches.
    2. Minimum length is 6 inches. Maximum length is 15 inches.
    3. Minimum thickness is 0.009 inch. Maximum thickness is 0.75 inch.
* * * * *
    [Revise heading and text of 3.2.4, and delete Exhibit 3.2.4a, to 
add new standards for deflection as follows:]
3.2.4 Maximum Deflection (``Droop'') Criteria for Flimsy 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.
    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 
down more than 3 inches.
* * * * *
    [Delete 3.4 to remove the standards for UFSM 1000 flats. Renumber 
3.5 through 3.9 as new 3.4 through 3.8.]

3.4 Polywrap Coverings

    [Revise heading and text of renumbered 3.4.1 as follows:]
3.4.1 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 3.4. Film approved for use under 3.4.5 must meet the 
specifications in Exhibit 3.4.1 as follows:
    a. Films or similar coverings must meet all eight properties in 
Exhibit 3.4.1.
    b. If the address label is affixed to the outside of the polywrap, 
the haze property (property 2) does not apply.
* * * * *
3.4.2 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.
3.4.3 Overhang
    [Revise 3.4.3 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.
    [Delete 3.4.4. Renumber 3.4.5 as 3.4.4.]
* * * * *

[[Page 2108]]

3.7 Uniformity and Exterior Format

3.7.1 General
    [Revise renumbered 3.7.1 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 3.7.3 (this information was relocated to 1.5). 
Renumber 3.7.4 as new 3.7.3.]
* * * * *

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 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.
* * * * *

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 parcels and pay the applicable parcel rate.

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.]

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 pay 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 pay 
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 
pay 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.

[[Page 2109]]

    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:
    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

[[Page 2110]]

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.''
* * * * *
    [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 pay 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 pay 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,

[[Page 2111]]

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:]
    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 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

[[Page 2112]]

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 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 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 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 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-

[[Page 2113]]

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.

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

* * * * *
    [Delete 1.5.4, 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 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 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:
    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.
    c. Nonmachinable letter-size pieces weighing more than 3.3 ounces, 
unless they qualify to be mailed at automation flat-size rates.
    [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 or irregular parcels do not bear a UCC/EAN 128 
barcode (see 708.5.0).
    b. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN 128 barcode (see 708.5.0).
    c. The Not Flat-Machinable pieces weigh less than 6 ounces and do 
not bear a UCC/EAN 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).
* * * * *

402 Elements on the Face of a Mailpiece

* * * * *

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 for Parcels

    [Revise title of 4.1 as follows:]

4.1 UCC/EAN 128 Barcode Location

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

4.2 Clear Zone for UCC/EAN 128 Barcode

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

4.3 POSTNET Barcodes

    First-Class Mail parcels and Not Flat-Machinable pieces less than 6 
ounces may bear POSTNET barcodes instead of UCC/EAN 128 barcodes. 
Pieces bearing POSTNET barcodes are not eligible to be mailed using 
eVS. Place POSTNET barcodes on First-Class Mail 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 or Standard Mail Not Flat-Machinable 
piece, the POSTNET barcode may be anywhere on the address side as long 
as it is at least \1/8\ inch from any edge of

[[Page 2114]]

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 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 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 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.
* * * * *

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 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.]
* * * * *

[[Page 2115]]

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 machinable or irregular parcels do not bear a UCC/EAN 128 
barcode, under 708.5.0, for the ZIP Code of the delivery address.
    b. The Not Flat-Machinable pieces weigh 6 ounces or more and do not 
bear a UCC/EAN 128 barcode, under 708.5.0, for the ZIP Code of the 
delivery address.
    c. The Not Flat-Machinable pieces weigh less than 6 ounces and do 
not bear a UCC/EAN 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:]

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 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:]

[[Page 2116]]

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. 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 to require 5-digit/scheme sort for rate eligibility 
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. When standards require 5-
digit/scheme sort, mailers must prepare all possible 5-digit scheme 
sacks, then prepare all possible 5-digit sacks. 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 
require 5-digit scheme sorting when claiming 5-digit rates, as 
follows:]
    Mailers must prepare all possible 5-digit/scheme sacks in a mailing 
that includes pieces claimed at the 5-digit rate. If mailers do not 
prepare all 5-digit/scheme sacks when there are 10 pounds or more of 
mail for a destination, they may not claim the 5-digit rate for any 
part of the mailing. 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. There is no minimum for parcels 
prepared in 5-digit/scheme sacks entered at a DDU.
5.3.2 Sacking and Labeling
    Preparation sequence, sack size, and labeling:
    [Revise item a to add the requirement of 5-digit/scheme sorting for 
pieces claiming the 5-digit rate 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:]

[[Page 2117]]

    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 
Presorted rates for NFM pieces are subject to the general preparation 
standards in 1.0 through 4.0. Prepare NFM pieces (see 301.2.2.3) 
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.

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 5D SCH.'' For 5-
digit sacks, use ``STD NFM 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-DMBC Rate Eligibility.
    2. Line 2: ``STD NFM 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-DMBC Rate Eligibility.
    2. Line 2: ``STD NFM 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 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.

[[Page 2118]]

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. Items weighing less than 20 pounds but measuring more than 84 
inches (but not more than 108 inches) in combined length and girth are 
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--Mailer Benefit

    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 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 Printer 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

* * * * *
5.2.4 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:
* * * * *
5.2.5 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:

[[Page 2119]]

    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 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

* * * * *

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 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.

[[Page 2120]]

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 
additional 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, and 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 is delivered as ordinary mail and 
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 machinable or irregular 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:
* * * * *

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

[[Page 2121]]

Priority Mail, Standard Mail 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 
and Package Services parcels defined in 401.1.0, and for all Priority 
Mail pieces. For the purposes of using Signature Confirmation with a 
First-Class Mail or 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.
* * * * *

13.0 Confirm Service

* * * * *

13.2 Basic Information

* * * * *
    [Revise the heading and text of 13.2.7 as follows:]
13.2.7 Subscription
    Confirm is available in blocks of 1 million units. By paying the 
user fee, subscribers receive 1 million units. The user fee and the 1 
million units are valid for 1 year from the date purchased. Additional 
units may be purchased during the subscription period in blocks of 1 
million with a declining price threshold as described in 13.1.1. Units 
expire when the annual fee expires. Units are redeemed for Confirm 
scans at the rate of one unit per First-Class Mail scan or five units 
per scan of other classes of mail.
* * * * *

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 item f to remove the nonmachinable surcharge in the second-
to-last sentence 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 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 i as follows:]
    i. A weighted fee is charged when an unforwardable or undeliverable 
piece is returned to the sender and the piece is endorsed ``Address 
Service Requested'' or ``Forwarding Service Requested.'' The weighted 
fee is the single-piece First-Class Mail rate for the weight and shape 
of the piece or the Priority Mail rate for the weight and destination 
of the piece multiplied by 2.472 and rounded up to the next whole cent 
(if the computation yields a fraction of a cent). The weighted fee is 
computed (and rounded if necessary) for each piece individually. Using 
``Address Service Requested'' or ``Forwarding Service Requested'' 
obligates the sender to pay the weighted fee on all returned pieces. 
The appropriate First-Class Mail rate for a Not Flat-Machinable piece 
is the First-Class Mail parcel rate.
    [Revise item j as follows:]
    j. Returned pieces endorsed ``Return Service Requested'' are 
charged the single-piece First-Class Mail rate for the weight and shape 
of the piece 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.
* * * * *

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 or Priority Mail rate 
for the weight and destination of the piece. The weight of the 
attachment or enclosure is

[[Page 2122]]

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--4-
State Customer 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 
numbered 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

    The location and orientation of the delivery address on a letter-
size mailpiece establish which dimensions of the piece are the length 
and the height. The length is the dimension parallel to the address as 
read; the height is the dimension perpendicular to the length. For 
flat-size pieces, parcels, and Not Flat-Machinable pieces, the length 
is the longest dimension. See 705.1.0 to determine the length of 
Customized MarketMail pieces.
* * * * *

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 and remove 
reference to nonmachinable surcharge. 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.
    [Revise the heading of renumbered 1.11 as follows:]

1.11 Additional Standards for Semipostal Stamps

    Semipostal stamps are subject to the following special conditions:
* * * * *
    [Revise item c to remove the reference to nonmachinable surcharge.]
* * * * *

609 Filing Indemnity Claims for Loss or Damage

1.0 General Filing Instructions

* * * * *

1.5 Where To File for Loss or Damage

    A claim may be filed:
    [Revise item a as follows:]
    a. Online at http://www.usps.com or in person at any post office, station, 

or branch, except for Registered Mail articles with merchandise return 
service (see 1.5b).
* * * * *
    [Revise the heading of 2.0 as follows:]

2.0 Providing Proof of Missing Contents or Damage

    [Revise 2.1 and 2.2 to change the requirements for proving missing 
contents or damage as follows:]

2.1 Missing Contents

    If a claim is filed because some or all of the contents are 
missing, the addressee must make available the mailing container, 
including any wrapping, packaging, and any contents that were received, 
to the USPS with the claim.

2.2 Proof of Damage

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

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

1.0 Customized MarketMail

* * * * *

1.2 Rates

    [Revise 1.2 as follows:]

[[Page 2123]]

    Pieces mailed as Customized MarketMail under 705.1.0 must pay 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.
* * * * *
    [Insert new 6.3 as follows:]

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

* * * * *
8.5.6 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 8.10.1e. 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.

[[Page 2124]]

    [Delete items a and c to remove the merged 5-digit and merged 5-
digit scheme pallet levels; renumber items b and c as new items a and 
b; renumber items e through l as new items c through j.]
* * * * *
8.10.3 Package Services Flats--Bundles and Sacks
    [Replace ``AFSM-100 compatible'' with ``automation-compatible under 
301.3.0'' in 8.10.3.]
* * * * *
    [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 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 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 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 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 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. 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.
    2. Line 2: ``STD NFM WKG.''
* * * * *

8.14 Pallets of Bundles, Sacks, and Trays

* * * * *

[[Page 2125]]

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.
* * * * *

9.0 Preparing Cotrayed and Cosacked Bundles of Automation and Presorted 
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 
Presorted rate pieces as an option to the basic bundling requirements 
in 9.0, Preparing Cotrayed and Cosacked Bundles of Automation and 
Presorted 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 (see 707.18.4ab) 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 
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:]
    c. 3-digit scheme, required; * * *
* * * * *

15.0 Plant-Verified Drop Shipment

* * * * *

15.2 Program Participation

* * * * *
15.2.4 Periodicals
    [Revise 15.2.4 to reflect the new rate structure for Periodicals 
mail as follows:]
    Periodicals postage must be paid at the post office verifying the 
copies or as designated by the district. Postage is

[[Page 2126]]

calculated from the destination USPS facility where deposited and 
accepted as mail (or from the facility where the Express Mail or 
Priority Mail Open and Distribute destinates). The publisher must 
ensure that sufficient funds are on deposit to pay for all shipments 
before their release. A publisher authorized under an alternative 
postage payment system must pay postage under the corresponding 
standards.
* * * * *

707 Periodicals

1.0 Rates and Fees

1.1 Outside-County--Excluding Science-of-Agriculture

* * * * *
    [Renumber 1.1.3 through 1.1.5 as new 1.1.4 through 1.1.6. Insert 
new 1.1.3 as follows:]
1.1.3 Outside-County Container Rate
    Rate for each pallet, sack, or tray containing Outside-County 
Periodicals mail: $0.85. Apply the container rate as follows:
    a. For mailings correctly prepared in trays or sacks, mailers pay 
the container rate for each tray or sack. (See 1.1.3b for mailings on 
pallets.)
    b. For mailings correctly prepared on pallets under 705.8.0:
    1. For bundles or trays on pallets, mailers pay the container rate 
for each pallet, and not for the bundles or trays.
    2. For sacks on pallets, mailers pay the container rate for each 
sack, and not for the pallet.
    c. For mailings not in containers under 707.23.4.2, Exception to 
Sacking, mailers pay the container rate for each 5-digit ZIP Code or 5-
digit scheme in the mailing serviced by the DDU.
    d. For containers of both In-County and Outside-County pieces, 
mailers do not pay the container rate for carrier route, 5-digit 
carrier routes, and 5-digit/scheme pallets, sacks, and trays.
* * * * *

1.2 Outside-County--Science-of-Agriculture

* * * * *
    [Renumber 1.2.3 as new 1.2.4. Insert new 1.2.3 as follows:]
1.2.3 Outside-County Container Rate
    Rate for each pallet, sack, or tray containing Outside-County 
Periodicals mail: $0.85. Apply the container rate as follows:
    a. For mailings correctly prepared in trays or sacks, mailers pay 
the container rate for each tray or sack. (See 1.1.3b for mailings on 
pallets.)
    b. For mailings correctly prepared on pallets under 705.8.0:
    1. For bundles or trays on pallets, mailers pay the container rate 
for each pallet, and not for the bundles or trays.
    2. For sacks on pallets, mailers pay the container rate for each 
sack, and not for the pallet.
    c. For mailings not in containers under 707.23.4.2, Exception to 
Sacking, mailers pay the container rate for each 5-digit ZIP Code or 5-
digit scheme in the mailing serviced by the DDU.
    d. For containers of both In-County and Outside-County pieces, 
mailers do not pay the container rate for carrier route, 5-digit 
carrier routes, and 5-digit/scheme pallets, sacks, and trays.
* * * * *

2.0 Rate Application and Computation

2.1 Rate Application

2.1.1 Rate Elements
    [Revise 2.1.1 to reflect the new Outside-County container rate and 
the new nonadvertising rate structure as follows:]
    Postage for Periodicals mail includes a pound rate charge, a piece 
rate charge, an Outside-County container rate charge, and any discounts 
for which the mail qualifies under the corresponding standards.
2.1.2 Applying Pound Rate
    [Revise 2.1.2 to reflect the new Outside-County container rate and 
the new nonadvertising rate structure as follows:]
    Pound rates are applied to the weight of the pieces in the mailing 
as follows:
    a. Outside-County pound rates are based on the weight of the 
advertising portion sent to each postal zone (as computed from the 
entry office) or destination entry zone, and the weight of the 
nonadvertising portion to a destination entry zone.
    b. Science-of-Agriculture Outside-County pound rates are based on 
the weights of the advertising portion and the nonadvertising portion 
of the mail sent to each postal zone (as computed from the entry 
office) or destination entry zone.
    c. In-County pound rates consist of a destination entry rate and an 
unzoned rate for all other eligible copies delivered within the county 
of publication.
    [Revise the heading of 2.1.3 as follows:]
2.1.3 Computing Weight of Advertising and Nonadvertising Portions
    [Revise 2.1.3 to reflect the new Outside-County container rate and 
the new nonadvertising rate structure as follows:]
    The pound rate charge is the sum of the charges for the computed 
weight of the advertising portion of copies to each zone, plus the sum 
of the charges for the computed weight of the nonadvertising portion of 
copies to each zone. The following standards apply:
    a. The minimum pound rate charge for any zone to which copies are 
mailed is the 1-pound rate. For example, three 2-ounce copies for a 
zone are subject to the minimum 1-pound charge.
    b. Authorized Nonprofit and Classroom publications with an 
advertising percentage that is 10% or less are considered 100% 
nonadvertising. When computing the pound rates and the nonadvertising 
adjustment, use ``0'' as the advertising percentage. Authorized 
Nonprofit and Classroom publications claiming 0% advertising must pay 
the nonadvertising pound rate for the entire weight of all copies to 
all zones.
* * * * *

2.2 Computing Postage

* * * * *
    [Renumber 2.2.7 as 2.2.8. Insert new 2.2.7 to compute the Outside-
County container rate as follows:]
2.2.7 Outside-County Container Rate
    The Outside-County container charge is the sum of Outside-County 
trays, sacks, or pallets in the mailing (see 1.1.3 and 1.2.3), 
multiplied by the container rate. Mailers who prepare Periodicals 
publications as a combined mailing by merging copies or bundles of 
copies under 26.0 may pay the Outside-County container charge on one 
mailer's Form 3541, on one consolidated Form 3541-C, or on each 
mailer's Form 3541 if they electronically submit their qualification 
report via Mail.dat. Prorate the charge for each mailer by determining 
how many containers that mailer is using. Next calculate the percentage 
of pieces in each of those containers and round to two decimal places. 
Add each percentage and multiply the total by the container rate. The 
total charges collected on all Form 3541s in a combined mailing must 
equal the total number of containers subject to the Outside-County 
container rate presented for mailing.
2.2.8 Total Postage
    [Revise renumbered 2.2.8 to reflect the new Outside-County 
container rate as follows:]
    Total Outside-County postage is the sum of the per pound and per 
piece charges, the container charge, and any Ride-Along charge; less 
all discounts;

[[Page 2127]]

rounded off to the nearest whole cent. Total In-County postage is the 
sum of the per pound and per piece charges, and any Ride-Along charge, 
less all discounts, rounded off to the nearest whole cent. For mailings 
that include foreign copies, total foreign postage is the sum of the 
per piece charges, less a discount, rounded off to the nearest whole 
cent.

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.
* * * * *

11.0 Basic Rate Eligibility

* * * * *

11.4 Discounts

    The following discounts are available:
* * * * *
    [Delete item c to eliminate the pallet discounts.]
* * * * *

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 pay the Periodicals nonautomation rate for the host piece 
plus the Ride-Along rate or the Standard Mail rate for the attachment 
or enclosure.
* * * * *

16.0 Postage Payment

* * * * *

16.4 Payment Method

    Mailers must pay Periodicals postage by advance deposit account at 
the original or additional entry post office, except under procedures 
in 16.5 for Centralized Postage Payment or in 705.15.2.4. Mailers may 
not pay postage for Periodicals using permit imprint, meter stamp, 
postage stamp, or precanceled stamps. Mailers must pay postage for 
First-Class Mail and Standard Mail enclosures under 703.9.8 through 
703.9.12 and 705.16.1. Mailers who prepare Periodicals publications as 
a combined mailing by merging copies or bundles of copies under 26.0 
may pay the Outside-County container charge on one mailer's Form 3541, 
on one consolidated Form 3541-C, or on each mailer's Form 3541 if the 
qualification report is electronically submitted via Mail.dat. If paid 
on each Form 3541, calculate the charge according to 2.2.7. The total 
charges collected on all Form 3541s in a combined mailing must equal 
the total number of containers subject to the Outside-County container 
rate (under 1.1.3 and 1.2.3) presented for mailing.
* * * * *

17.0 Documentation

* * * * *

17.7 Additional Standards

* * * * *
    [Insert new 17.7.4 as follows:]
17.7.4 Outside-County Container Rate Documentation
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing, supported by 
standardized documentation meeting the basic standards in 708.1.0. The 
documentation must show how many trays, sacks, or pallets are required 
for the rates and discounts claimed, even when the mailing is presented 
under 707.23.4.2, Exception to Sacking, or is otherwise presented by 
the mailer. Documentation of postage is not required if each piece in 
the mailing is of identical weight and the pieces are separated when 
presented for acceptance by rate, by zone, and by entry discount (such 
as DDU and DSCF).

18.0 General Information for Mail Preparation

* * * * *

18.3 Presort Terms

    Terms used for presort levels are defined as follows:
* * * * *
    [Revise items e and p as follows:]
    e. 5-digit scheme (bundles and sacks) for flats prepared according 
to 301.3.0: the ZIP Code in the delivery address on all pieces is one 
of the 5-digit ZIP Codes processed by the USPS as a single scheme, as 
shown in L007.
* * * * *
    p. 3-digit scheme bundles for flats prepared according to 301.3.0: 
the ZIP Code in the delivery address on all pieces is one of the 3-
digit ZIP Codes processed by the USPS as a single scheme, as shown in 
L008.
* * * * *

18.4 Mail Preparation Terms

    For purposes of preparing mail:
* * * * *
    [Revise items b, i, and r 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.
* * * * *
    i. A 5-digit scheme sort for flats prepared according to 301.3.0 
yields 5-digit scheme bundles for those 5-digit ZIP Codes identified in 
L007. Presorting must be performed using L007. Pieces prepared in 
scheme bundles must meet the automation flat criteria in 301.3.0. 
Mailpieces must be labeled using an optional endorsement line under 
708.7.0. Periodicals firm bundles must not be part of 5-digit scheme 
bundles.
* * * * *
    r. A 3-digit scheme sort for flats prepared according to 301.3.0 
yields 3-digit scheme bundles for those 3-digit ZIP Codes identified in 
L008. The 3-digit scheme sort is optional, except under 705.12.0 and 
705.13.0. For 705.12.0 and 705.13.0, presorting must be performed using 
L008. Pieces prepared in scheme bundles must meet the automation flat 
criteria in 301.3.0. Mailpieces must be labeled using an OEL under 
708.7.0. Periodicals firm bundles must not be physically combined 
within 3-digit scheme bundles, but can contribute toward the six-piece 
minimum for rate eligibility.
* * * * *

22.0 Preparing Presorted Periodicals

* * * * *

22.2 Bundle Preparation

    [Revise the introductory text of 22.2 as follows:]

[[Page 2128]]

    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:
* * * * *
    [Renumber items b through f as new items c through g. Insert new 
item b as follows:]
    b. 5-digit scheme (optional); six-piece minimum; red Label 5 or 
OEL.
* * * * *
    [Renumber new items d through g as items e through h. Insert new 
item d as follows:]
    d. 3-digit scheme (optional); six-piece minimum; green Label 3 or 
OEL.
* * * * *

22.6 Sack Preparation--Flat-Size Pieces and Irregular Parcels

    For mailing jobs that also contain an automation rate mailing, see 
22.1.2 and 705.9.0 or 705.10.0. For other mailing jobs, preparation 
sequence, sack size, and labeling:
    [Renumber items a through g as new items b through h. Insert new 
item a as follows:]
    a. 5-digit scheme; optional; for pieces meeting the standards in 
301.3.0; 24-piece minimum, fewer pieces not permitted.
    1. Line 1: L007, Column B.
    2. Line 2: ``PER'' or NEWS'' as applicable, followed by ``FLTS 5D 
SCH NON BC.''
* * * * *

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 weight and size 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.
25.1.6 Scheme Bundle Preparation
    [Revise 25.1.6 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. 
These bundles must meet the additional standards in 18.4i or 18.4r. 
Pieces meeting the alternate criteria in 25.3 must not be prepared in 
scheme bundles.
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.
25.1.8 Exception--Automation and Nonautomation Pieces on Pallets
    [Revise the first sentence of 25.1.8 as follows:]
    When the physical dimensions of the mailpieces in a Periodicals 
mailing meet the definition of both a letter-size piece and an 
automation flat-size piece, the entire job may be prepared, merged, and 
palletized under 705.9.0 through 705.13.0. The nonautomation portion is 
paid at the nonautomation rates. Mailing jobs prepared entirely in 
sacks and claiming this exception must be cobundled under 705.11.0. As 
an alternative to 705.9.0 through 705.13.0, if a portion of the job is 
prepared as palletized automation flats, the nonautomation portion may 
be prepared as palletized flats and paid at nonautomation and carrier 
route rates. The nonautomation rate pieces that cannot be placed on ADC 
or finer pallets may be prepared as flats in sacks and paid at the 
nonautomation rates.
* * * * *
    [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 301.3.3, mailers may prepare 
automation flat-size pieces according to 25.3.2 and 25.3.3 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 
301.3.2.
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.

25.4 Bundling and Labeling

    Preparation sequence, bundle size, and labeling:
    [Revise items a and c in renumbered 25.4 to require scheme bundling 
as follows:]
    a. 5-digit scheme (required for pieces meeting the standards in 
301.3.0); six-piece minimum (fewer pieces permitted under 25.1.9); OEL 
required.
* * * * *

[[Page 2129]]

    c. 3-digit scheme (required for pieces meeting the standards in 
301.3); six-piece minimum (fewer pieces permitted under 25.1.9); OEL 
required.
* * * * *

25.5 Sacking and Labeling

    For mailing jobs that also contain a Presorted rate mailing, see 
25.1.10 and 705.9.0. Other mailing jobs are prepared, sacked, and 
labeled as follows:
    [Revise item a in renumbered 25.5 as follows:]
    a. 5-digit scheme (for pieces meeting the standards in 301.3.0 
only), required at 24 pieces, fewer pieces not permitted; may contain 
5-digit scheme bundles only; labeling:
* * * * *

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:
* * * * *

26.0 Combining Multiple Editions or Publications

    [Reorganize and revise 26.0 to add the definition and standards for 
copalletized mailings. The experimental copalletization drop-ship 
classifications in 709.3.0 and 709.4.0 expire, and all mailers may 
copalletize under 26.0 as follows:]

26.1 Description

    Mailers may prepare Periodicals publications as a combined mailing 
by merging copies or bundles of copies to achieve the finest presort 
level possible or to reduce the per piece or the Outside-County 
container rate charge. Mailers may use the following methods:
    a. Mailers may merge and sort together (``comail'') individually 
addressed copies of different editions of a Periodicals publication 
(one title) or individually addressed copies of different Periodicals 
publications (more than one title) to obtain a finer presort level.
    b. Mailers may place two or more copies of different Periodicals 
publications (two or more titles), and/or multiple editions of the same 
publication in the same mailing wrapper or firm bundle and present it 
as one addressed piece to a single recipient to reduce the per piece 
charge.
    c. Mailers may copalletize separately presorted bundles of 
different Periodicals titles and editions to achieve minimum pallet 
weights. Mailers do not have to achieve the finest pallet presort level 
possible.

26.2 Authorization

26.2.1 Basic Standards
    Each publication in a combined mailing must be authorized (or 
pending authorization) to mail at Periodicals rates. Each mailer must 
be authorized to comail or copalletize mailings under 26.1a and 26.1c 
by Business Mailer Support (see 608.8.1 for address). Requests for 
authorization must show:
    a. The mailer's name and address.
    b. The mailing office.
    c. Procedures and quality control measures for the combined 
mailing.
    d. The expected date of the first mailing.
    e. A sample of the standardized documentation.
26.2.2 Denial
    If the application is denied, the mailer or consolidator may file 
at a later date, or submit additional information needed to support the 
request.
26.2.3 Termination
    An authorization may not exceed 2 years. Business Mailer Support 
may take action to terminate an authorization at any time, by written 
notice, if the mailer does not meet the standards.

26.3 Minimum Volume

    The following minimum volume standards apply:
    a. For combined mailings prepared under 26.1a, more than one 
Periodicals publication, or edition of a publication, are combined to 
meet the required minimum volume per bundle, sack, or tray for the rate 
claimed.
    b. For combined mailings prepared under 26.1b, the minimum volume 
requirements in 22.0, 23.0, 201.3.0, or 25.0 apply for the rate 
claimed.
    c. For copalletized mailings prepared under 26.1c, the minimum 
volume requirements for pallets in 705.8.5.3 apply for the rate 
claimed.

26.4 Labeling

    Mailers must label all containers in a combined mailing as either 
``NEWS'' (see 21.1.3) or ``PER'' as follows:
    a. If at least 51% of the total number of copies in the combined 
mailing can qualify for ``NEWS'' treatment then all containers in the 
mailing are labeled ``NEWS,'' unless the mailer chooses to use ``PER.''
    b. If less than 51% of the total number of copies in a combined 
mailing can qualify for ``NEWS'' treatment then all containers in the 
mailing are labeled ``PER.''

26.5 Documentation

    Each mailing must be accompanied by documentation meeting the 
standards in 17.0, as well as any additional mailing information 
requested by the USPS to support the postage claimed (such as 
advertising percentage and weight per copy). The following additional 
standards apply:
    a. Presort documentation required under 708.1.0 must show the total 
number of addressed pieces and total number of copies for each 
publication and each edition in the combined mailing claimed at the 
carrier route, 5-digit, 3-digit, and basic rates. The mailer also must 
provide a list, by 3-digit ZIP Code prefix, of the number of addressed 
pieces for each publication and each edition claimed at any destination 
entry discount.
    b. Copalletized mailing documentation must consolidate and identify 
each title and version (or edition) in the mailing. Mailers may use 
codes in the summary heading to represent each title and version (or 
edition) presorted together on pallets. The documentation must include 
presort and pallet reports showing by title and version (or edition) 
how the bundles are presorted and where they will be entered.

26.6 Postage Statements

    Mailers must prepare postage statements for a combined mailing as 
follows:
    a. Copy weight and advertising percentage determine whether 
separate postage statements are required for editions of the same 
publication:
    1. If the copy weight and advertising percentage for all editions 
of a publication are the same, mailers may report all the editions on 
the same postage statement or each edition on a separate postage 
statement.
    2. If the copy weight or the advertising percentage is different 
for each edition of a publication, mailers must report each edition on 
a separate postage statement.
    b. For a combined mailing prepared under 26.1a, mailers must 
prepare a separate postage statement that claims all applicable per 
piece and per pound charges for each publication or edition except as 
provided in 26.2.5a. The mailer must annotate on, or attach to, each 
postage statement, the title and

[[Page 2130]]

issue date of each publication or edition and indicate that the pieces 
were prepared as part of a combined mailing under 26.1a.
    c. For mailings under 26.1b, mailers must prepare a separate 
postage statement claiming the applicable per pound charges for each 
publication or edition in the combined mailing except as provided in 
26.2.5a. The mailer must annotate on, or attach to, each postage 
statement, the title and issue date of each publication or edition and 
indicate that the copies were prepared as part of a combined mailing 
under 26.1b. The per piece charges must be claimed as follows:
    1. If all copies in the combined mailing are eligible for the 
Classroom or Nonprofit discount, or if all copies are not eligible for 
the Classroom or Nonprofit discount, mailers may claim the per piece 
charges only on the postage statement for the publication that contains 
the highest amount of advertising.
    2. If a portion of the copies in the combined mailing are eligible 
for the Classroom or Nonprofit discount and a portion are not eligible, 
mailers may claim the per piece charges only on the postage statement 
for the publication that contains the highest amount of advertising and 
is not eligible for the Classroom or Nonprofit discount. The Classroom 
or Nonprofit per piece discount must not be claimed.
    d. For copalletized mailings under 26.1c, mailers must prepare a 
separate postage statement for each publication in the mailing. 
Mailings consisting of different editions or versions of the same 
publication must be accompanied by one consolidated postage statement 
and a register of mailings for each publication.

26.7 Postage Payment

    Each mailing must meet the postage payment standards in 16.0. For 
copalletized mailings under 26.1c, mailers must pay postage at the post 
office serving the facility where consolidation takes place, except 
that postage for publications authorized under the Centralized Postage 
Payment (CPP) system may be paid to the Pricing and Classification 
Service Center (see 608.8.4.1 for address).

26.8 Deposit of Mail

    Each publication in a combined mailing must be authorized for 
original entry or additional entry at the post office where the mailing 
is entered. For copalletized mailings under 26.1c, mailers must enter 
each mailing at the post office serving the facility where 
consolidation takes place.
* * * * *

28.0 Destination Entry Rate Eligibility

28.1 Basic Standards

28.1.1 Rate Application
    [Revise 28.1.1 to eliminate the pallet discounts and add the new 
container rate as follows:]
    Outside-County addressed pieces may qualify for destination area 
distribution center (DADC) or destination sectional center facility 
(DSCF) rates under 28.2 or 28.3. Carrier route rate addressed pieces 
may qualify for destination delivery unit (DDU) rates under 28.4. 
Outside-County pieces are subject to the Outside-County container rate 
in 1.1.3 or 1.2.3. For all destination entry rate pieces:
    a. Only one destination entry discount may be claimed for each 
addressed piece.
    b. An individual bundle, tray, sack, or pallet may contain pieces 
claimed at different destination entry rates.
    c. In-County carrier route rate addressed pieces may qualify for 
the DDU discount under 28.4.
    d. The advertising and nonadvertising portions may be eligible for 
DADC, DSCF, or DDU pound rates based on the entry facility and the 
address on the piece.
* * * * *

28.2 Destination Area Distribution Center

* * * * *
28.2.3 Rates
    [Revise 28.2.3 to reflect the new nonadvertising rate structure as 
follows:]
    DADC rates include a per piece discount off the addressed piece 
rate, a nonadvertising pound rate, and, if applicable, an advertising 
pound rate.

28.3 Destination Sectional Center Facility

* * * * *
28.3.3 Rates
    [Revise 28.3.3 to reflect the new nonadvertising rate structure as 
follows:]
    DSCF rates include a per piece discount off the addressed piece 
rate, a nonadvertising pound rate, and, if applicable, an advertising 
pound rate.

28.4 Destination Delivery Unit

* * * * *
28.4.3 Rates
    [Revise 28.4.3 to reflect the new nonadvertising rate structure as 
follows:]
    DDU rates for Outside-County include a per piece discount off the 
addressed piece rate, a nonadvertising pound rate, and, if applicable, 
an advertising pound rate. DDU rates for In-County consist of a per 
piece discount off the addressed piece rate and a pound charge.
* * * * *

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 no 
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.
* * * * *
    [Add new item c10 as follows:]
    10. For Periodicals mailings that contain both In-County and 
Outside-County pieces, include a separate ``Container Charge'' column. 
The body of the listing must indicate which containers are subject to 
the container charge and a running total.
    [Revise item e as follows:]
    e. At the end of the documentation, a summary report of the total 
number of pieces mailed at each postage rate for

[[Page 2131]]

each mailing reported on the listing by postage payment method (and by 
entry point for drop shipment mailings) and the total number of pieces 
in each mailing. This information must correspond to the information 
reported on the postage statement(s) for the pieces reported. For 
Periodicals mailings, documentation also must provide:
    1. A summary of the total number of each type of container in the 
mailing and the total container charge paid. Report only trays, sacks, 
and pallets subject to the Outside-County container rate under 1.1.3 
and 1.2.3.
    2. For combined mailings, a summary by individual mailer of the 
number of each type of container in the mailing and the container rate 
paid. Report only trays, sacks, and pallets subject to the Outside-
County container rate under 1.1.3 and 1.2.3.
    3. A summary of the total number of copies for each zone, including 
In-County, delivery unit, SCF, and ADC rates. A separate summary report 
is not required if a PAVE-certified postage statement facsimile 
generated by the presort software used to prepare the standardized 
documentation is presented for each mailing.
    4. Additional data if necessary to calculate the amount of postage 
for the mailing (or additional postage due, or postage to be refunded) 
if nonidentical-weight pieces that do not bear the correct postage at 
the rate for which they qualify are included in the mailing, or if 
different rates of postage are affixed to pieces in the mailing.

1.3 Rate Level Column Headings

    [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
------------------------------------------------------------------------

* * * * *
    [Delete the ``3/5'' entry in item b. Revise the ``5-Digit,'' ``3-
Digit,'' and ``Basic'' entries in item b as follows:]

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

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

* * * * *
    [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 letters]........            5DGS
------------------------------------------------------------------------

* * * * *
    [Revise the heading of 4.0 as follows:]

4.0 Standards for POSTNET and 4-State Customer 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, and Not Flat-
Machinable Pieces
    For a barcode on a flat-size piece, a First-Class Mail parcel, or a 
Not Flat-Machinable piece weighing less than 6 ounces, the maximum 
rotational skew (slant or tilt of the individual barcode bars) 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 barcode placement on 
First-Class Mail parcels and on Standard Mail 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, 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.]

[[Page 2132]]

----------------------------------------------------------------------------------------------------------------
               Class and mailing                   CIN                 Human-readable content 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--Nonautomation
    5-digit sacks..............................     500  STD NFM 5D.
    5-digit scheme sacks.......................     500  STD NFM 5D SCH.
    3-digit sacks..............................     501  STD NFM 3D.
    ADC sacks..................................     502  STD NFM ADC
    ASF sacks..................................     503  STD NFM ASF
    BMC sacks..................................     505  STD NFM BMC.
    Mixed ADC/Mixed BMC sacks..................     506  STD NFM WKG.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                                Package Services
----------------------------------------------------------------------------------------------------------------

[[Page 2133]]

                                                  * * * * * * *
              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 3.0, Outside-County Periodicals Copalletization Drop-Ship 
Classification; 4.0, Outside-County Periodicals Copalletization Drop-
Ship Discounts for High-Editorial, Heavy-Weight, Small-Circulation 
Publications; and 5.0, Priority Mail Flat-Rate Box. Renumber remaining 
sections 6.0 and 7.0 as new 3.0 and 4.0. The experimental 
copalletization discounts expire and are replaced by the new rate 
structure for Periodicals mail in 707. The Priority Mail Flat-Rate Box 
becomes a permanent offering in 123.]
* * * * *
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes if our proposal is adopted.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. E7-245 Filed 1-16-07; 8:45 am]

BILLING CODE 7710-12-P