[Federal Register Volume 76, Number 39 (Monday, February 28, 2011)]
[Rules and Regulations]
[Pages 10757-10761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4074]


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POSTAL SERVICE

39 CFR Parts 111 and 121


Combined Mailings of Standard Mail and Periodicals Flats

AGENCY: Postal Service\TM\.

ACTION: Final rule.

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SUMMARY: The Postal Service is revising Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]) 705.14 and 
708.1.1 to provide a new option for mailers to combine Standard 
Mail[supreg] flats and Periodicals flats within the same bundle, when 
placed on pallets, and to combine bundles of Standard Mail flats and 
bundles of Periodicals flats on the same pallet. The Postal Service is 
also amending the Code of Federal Regulations to reflect that the 
Standard Mail service standards apply to all Periodicals flats pieces 
entered in such combined mailings.

DATES: Effective Date: June 6, 2011.

FOR FURTHER INFORMATION CONTACT: Jonathan Leon at 202-268-7443, or 
Kevin Gunther at 202-268-7208.

SUPPLEMENTARY INFORMATION: The Postal Service is providing a new option 
for mailers to combine Standard Mail flats and Periodicals flats, when 
bundled and placed on pallets. Mailers using this option may combine 
different-class mailpieces within the same bundle (comail), or combine 
separate same-class bundles (of different classes) on the same pallet 
(copalletize) to maximize presorting or to qualify for deeper 
destination entry discounts. All mailpieces prepared under this option 
are required to be bundled and placed on pallets. Combining mailings 
enhances operational efficiencies within postal processing by allowing 
mailers to place mailpieces in bundles on pallets that might have been 
placed in sacks if prepared separately.
    This new option does not change current DMM content and eligibility 
standards applicable to Periodicals and Standard Mail. Mailers using 
this option must continue to be required to meet the minimum volume 
standards for Standard Mail of 200 pieces or 50 pounds. Periodicals 
publications must be authorized or have a pending authorization to mail 
at Periodicals prices. The current processes that identify and isolate 
Periodicals origin mixed area distribution center (OMX) mailpieces, for 
integration into the First-Class Mail[supreg] mailstream, will not be 
available when combining Standard Mail flats and Periodicals flats on 
pallets. All mailpieces included in a combined mailing of Standard Mail 
and Periodicals flats on pallets must be machinable in accordance with 
DMM 301.3.0.
    Mailers wishing to combine Standard Mail and Periodicals flats 
under this option are required to submit a request for authorization, 
in writing, to the Manager, Business Mailer Support (see DMM 608.8.1 
for contact information).
    All mailpieces included in a combined mailing of Periodicals flats 
and Standard Mail flats are required to meet the standards for full-
service automation mailings. Intelligent Mail[supreg] barcodes placed 
on mailpieces prepared under this program are required to include 
Service Type Identifiers appropriate for the class of mail of the 
individual mailpiece.
    Participating mailers are required to present standardized 
electronic mailing documentation for each combined mailing, and at the 
time of mailing, the following additional documentation:
    <bullet> An edition or version summary for all pieces in the 
mailing.
    <bullet> A consolidated postage statement register and postage 
statement for each Periodicals publication in the combined mailing.
    <bullet> A consolidated postage statement register and postage 
statement for each Standard Mail mailing in the combined mailing. 
Mailers may provide a single consolidated postage statement and postage 
statement register of all Standard Mail mailings if they are itemized.
    <bullet> A register of Forms 8125, Plant Verified Drop Shipment 
(PVDS) Verification and Clearance, (PS 8125C) that consolidates all of 
the mailings to the destinations where the mail is entered.
    When using this option, postage on all Standard Mail pieces must be 
paid through a permit imprint using a special postage payment system at 
the Post Office\TM\ serving the mailer.
    Postage for Periodicals may be paid through an advance deposit 
account or through a Centralized Account Payment System (CAPS) account. 
Participating mailers will be required to apportion the Periodicals 
bundle charge based on the number of Periodicals copies in the bundles 
and container charge based on the weight of the Periodicals portion of 
the container.
    Mailers combining Standard Mail flats and Periodicals flats will 
not have the option to form ADC pallets or to dropship to ADCs. As a 
result, Periodicals publications included in combined mailings will not 
have access to DADC prices. Other specific prices for Periodicals flats 
in a combined mailing will be assessed as follows:
    <bullet> The bundle prices applicable to the ADC container level 
will be applied to the ASF/NDC container level.
    <bullet> The container prices applicable to the ADC pallet level 
will apply to the ASF/NDC pallet level.
    <bullet> The bundle price applicable to the ADC bundle placed on 
the ADC container level will apply to mixed ADC bundles placed on mixed 
NDC pallets.
    <bullet> The container price applicable to the ADC pallet level 
will also apply to the mixed NDC pallet level.
    Standard Mail flats and Periodicals flats combined on pallets will 
be processed as Standard Mail; and the Periodicals mailpieces included 
within these combined mailings may receive

[[Page 10758]]

deferred handling. Periodicals mailpieces included within mailings of 
combined Standard Mail flats and Periodicals flats will be subject to 
the USPS service standards applicable to Standard Mail. These mailings 
must also be identified as Standard Mail when scheduling dropship 
appointments in the Facility Access and Shipment (FAST[supreg]) system.
    Mailers combining Standard Mail flats and Periodicals flats on 
pallets must populate field 10, ``Product or Publication Title or 
Names,'' of PS Form 8125 and/or field 11b, ``Product Name/ID,'' of PS 
Form 8125C with ``MIX COMAIL'' when preparing dropship documentation 
for these mailings.
    Any mixed NDC pallets prepared under this program are required to 
be entered at the NDC servicing the 3-digit ZIP[reg] Code of the entry 
Post Office for the mailer's plant. Mailers combining Standard Mail 
flats and Periodicals flats on pallets may reallocate bundles under DMM 
705.8.11 and 705.8.13.
    Each Standard Mail and Periodicals mailpiece prepared under a 
combined mailing of Standard Mail flats and Periodicals flats are 
required to be identified as containing mixed classes through the use 
of an optional endorsement line (OEL) in accordance with these 
standards.
    Mailers preparing combined mailings of Standard Mail flats and 
Periodicals flats are required to provide a written notification to 
each participating Periodicals publisher that describes the combined 
mailing process and the potential for pieces to receive deferred USPS 
handling. These notifications, signed and dated by the Periodicals 
publisher, are required to be retained by the mailer and must be 
available for review by the USPS upon request.
    The Postal Service also revises 39 CFR Part 121.2 by adding a new 
item c to describe the USPS processing of Periodicals mailpieces 
included in combined mailings of Standard Mail flats and Periodicals 
flats, and specifying that Periodicals mailpieces included in these 
mailings will be assigned the service standards applicable to Standard 
Mail pieces.

List of Subjects

39 CFR Part 111

    Administrative practice and procedure, Postal Service.

39 CFR Part 121

    Administrative practice and procedure, Postal Service.

    Accordingly, 39 CFR Parts 111 and 121 are amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR Part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 13 U.S.C 301-307; 39 U.S.C. 101, 
401, 403, 404, 407, 414, 416, 3001-3011, 3201-3219, 3403-3406, 3621, 
3622, 3626, 3632, 3633 and 5001.


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

700 Special Services

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

8.0 Preparing Pallets

* * * * *

8.5 General Preparation

8.5.1 Presort

    [Revise the fifth sentence of 8.5.1 as follows:]
    * * * Except as described in 15.1i, bundles must not be placed on 
mixed ADC or mixed NDC pallets. * * *
* * * * *
    [Renumber current 15.0 through 23.0 as new 16.0 through 24.0 and 
add new 15.0 as follows:]

15.0 Combining Standard Mail Flats and Periodicals Flats

15.1 Basic Standards

    Authorized mailers may combine Standard Mail flats and Periodicals 
flats in a single mailing as follows:
    a. Each mailpiece must meet the standards in 340 for Standard Mail 
and 707 for Periodicals. Periodicals publications must be authorized or 
pending original or additional entry at the office of mailing.
    b. Mailers must prepare pieces in bundles on pallets.
    c. Except for residual volume placed on a mixed NDC pallet under 
15.4.1j, all pallets meeting minimum volume requirements must be 
dropshipped to the appropriate DNDC or DSCF.
    d. Unless authorized by the local processing and distribution 
manager, any mixed NDC pallets prepared under this program must be 
entered at the NDC servicing the 3-digit ZIP Code of the entry Post 
Office for the mailer's plant.
    e. All pieces included in a combined mailing of Standard Mail and 
Periodicals must meet the requirements for full-service automation, as 
described in 23.0.
    f. Mailers must pay all annual mailing fees at the office of 
mailing.
    g. Each mailing must include at least 200 pieces or 50 pounds of 
Standard Mail.
    h. All mailpieces combined within bundles, in accordance with 14.0, 
must be similar in size so as to create stable bundles. Bundles placed 
on pallets under this provision must be prepared to create stable 
pallets.
    i. When residual pieces are included in a combined mailing of 
Standard Mail flats and Periodicals flats on pallets, these pieces must 
be placed on mixed NDC pallets and entered at the NDC serving the 
mailer's plant.
    j. All mailpieces included in a combined mailing of Standard Mail 
flats and Periodicals flats on pallets must be machinable in accordance 
with 301.3.0.

15.1.1 Service Objectives

    The Postal Service handles combined mailings of Standard Mail flats 
and Periodicals flats as Standard Mail. Periodicals flats included 
within mailings of combined Standard Mail flats and Periodicals flats 
are subject to the USPS service standards applicable to Standard Mail.

15.1.2 Postage Payment

    Postage for all Standard Mail pieces must be paid with permit 
imprint using a special postage payment system in 2.0 through 4.0 at 
the Post Office serving the mailer's plant. Postage for Periodicals may 
be paid through an advance deposit account or through a Centralized 
Account Payment System (CAPS) account.

15.1.3 Documentation

    Mailers must present standardized electronic documentation 
according to 708.1.0. This documentation must accurately reflect the 
final piece count in the combined mailing. In addition, mailers must 
provide:
    a. An edition or version summary for all pieces in the mailing. The 
summary may be part of the USPS qualification report and must include 
version ID, product or edition code, class of mail, piece weight of 
each version, and number of pieces by version; and for Periodicals, 
USPS or permit number (or pending permit number), issue date, and 
advertising percentage.
    b. A consolidated postage statement register and postage statement 
for each Periodicals publication in the combined mailing.
    c. A consolidated postage statement register and postage statement 
for each Standard Mail mailing in the combined

[[Page 10759]]

mailing. Mailers may provide a single consolidated postage statement 
and a consolidated postage statement register of all Standard Mail 
mailings if they are itemized.
    d. A register of Forms 8125 (or PS 8125C) that consolidates all of 
the mailings into the destinations where the mail is dropshipped.
    e. Documentation to support zones and bundle totals, if requested.
    f. When requested, a copy of a notification document signed and 
dated by the Periodicals publisher, acknowledging their participation 
in a combined mailing of Standard Mail and Periodicals and the 
potential for their mailpieces to receive deferred USPS handling.
    g. Any additional documentation to support postage payment system 
records, if requested.

15.1.4 Authorization

    A mailer must submit a written request to the manager, Business 
Mailer Support (see 608.8.1 for address) to combine mailings of 
Standard Mail flats and Periodicals flats. The request must show the 
mailer's name and address, the mailing office, evidence of 
authorization to mail using a special postage payment system under 2.0 
through 4.0, procedures for combining the mailing, the expected date of 
first mailing, quality control procedures, and a sample of all 
supporting mailing documentation, including postage statements and the 
USPS Qualification Report. Business Mailer Support will review the 
documentation and provide written authorization. A mailer may terminate 
an authorization at any time by written notice to the postmaster of the 
office serving the mailer's location. Business Mailer Support may 
terminate an authorization by written notice if the mailer does not 
meet the standards.

15.1.5 Price Eligibility

    Apply prices based on the standards in 340 for Standard Mail. 
Prices are based on the standards in 707 for Periodicals and as 
modified under the standards for this program.

15.1.6 Piece Prices

    Apply piece prices based on the bundle level. Pieces contained 
within mixed class bundles may claim prices based on the presort level 
of the bundle.

15.1.7 Applying the Periodicals Bundle Charge

    Apply bundle charges as follows:
    a. Calculate the percentage of Periodicals copies in a bundle.
    b. Convert the percentage to four decimal places, rounding off if 
necessary (for example, convert 20.221% to 0.2022, or 20.226% to 
0.2023). Multiply by the applicable bundle charge.
    c. Allocate the resulting charge across the Periodicals titles and 
editions based on the number of copies of each in the bundle.

15.1.8 Applying the Periodicals Container Charge

    Apply container charges to pallets as follows:
    a. Calculate the percentage of the weight of Periodicals copies on 
each pallet.
    b. Convert the percentage to four decimal places, rounding off if 
necessary (for example, convert 20.221% to 0.2022, or 20.226% to 
0.2023). Multiply by the applicable container charge.
    c. Allocate the resulting charge across the Periodicals titles and 
editions based on the number of copies of each on the pallet.

15.1.9 Other Periodicals Pricing

    Other prices for Periodicals flats in a combined mailing of 
Standard Mail and Periodicals flats on pallets will be assessed as 
follows:
    a. The bundle prices applicable to the ADC container level will be 
applied to the ASF/NDC container levels.
    b. The container prices applicable to the ADC pallet level will 
apply to the ASF/NDC pallet levels.

15.1.10 Bundle Reallocation To Protect the SCF or NDC Pallet

    Mailers may reallocate bundles under 8.11 or 8.13 to protect the 
SCF or NDC pallet.

15.2 Combining Standard Mail Flats and Periodicals Flats in the Same 
Bundle

15.2.1 Bundling and Labeling

    Standard Mail flats and Periodicals flats may be combined in 
carrier route, 5-digit (scheme), 3-digit, ADC, and Mixed ADC bundles 
when prepared according to 707.19.0 and these additional standards:
    a. Each bundle containing combined Standard Mail flats and 
Periodicals flats must contain a minimum of 10 pieces. Bundles of only 
Standard Mail flats must contain a minimum of 10 pieces. Bundles of 
only Periodicals flats must contain a minimum of 6 pieces.
    b. Firm bundles must contain only Periodicals flats.

15.2.2 Mailpiece and Bundle Identification

    Each Standard Mail and Periodicals mailpiece prepared under a 
combined mailing of Standard Mail flats and Periodicals flats must be 
identified as being part of a mixed class mailing through the use of an 
optional endorsement line (OEL) in accordance with the standards in 
708.7.1.8.

15.2.3 Pallet Presort and Labeling

    Mailers must prepare pallets according to the standards in 8.0 and 
in the sequence listed below. Merged 5-digit scheme through NDC pallets 
must contain at least 250 pounds of combined Standard Mail and 
Periodicals mailpieces, except as allowed under 8.5.3. Pallets must be 
labeled according to the Line 1 and Line 2 information listed below and 
under 8.6. Pallet placards must be white and measure at least 8 inches 
by 11 inches, unless prepared under 708.6.6.6. Prepare pallets 
according to the preparation, sequence and labeling instructions in 
14.4.1.

15.3 Combining Bundles of Standard Mail Flats and Periodicals Flats on 
the Same Pallet

15.3.1 Bundling and Labeling

    Mailers must prepare bundles according to the standards for the 
class of mail and the prices claimed.

15.3.2 Mailpiece and Bundle Identification

    Each Standard Mail and Periodicals mailpiece prepared under a 
combined mailing of Standard Mail flats and Periodicals flats must be 
identified as being part of a mixed class mailing through the use of an 
optional endorsement line (OEL) in accordance with standards in 
708.7.1.8.

15.3.3 Pallet Presort and Labeling

    Mailers must prepare pallets according to the standards in 8.0 and 
in the sequence listed below. Merged 5-digit scheme through NDC pallets 
must contain at least 250 pounds of combined Standard Mail and 
Periodicals, except as allowed under 8.5.3. When reallocating bundles 
under 8.11 or 8.12, mailers do not have to achieve the finest pallet 
presort level possible. Pallets must be labeled according to the Line 1 
and Line 2 information listed below and under 8.6. Pallet placards must 
be white and measure at least 8 inches by 11 inches, unless prepared 
under 708.6.6.6. Prepare pallets according to the preparation, sequence 
and labeling instructions in 14.4.1.

[[Page 10760]]

15.4 Pallet Preparation

15.4.1 Pallet Preparation, Sequence and Labeling

    When combining Standard Mail and Periodicals flats within the same 
bundle or combining bundles of Standard Mail flats and bundles of 
Periodicals flats on pallets, bundles must be placed on pallets. 
Preparation, sequence and labeling:
    a. Merged 5-digit scheme, optional. Not permitted for bundles 
containing noncarrier route automation-compatible flats under 301.3.0. 
Required for all other bundles. Pallet must contain barcoded carrier 
route bundles and barcoded noncarrier route 5-digit bundles for the 
same 5-digit scheme under L001. For 5-digit destinations not part of 
L001, merged 5-digit pallet preparation begins with 8.10.2d. Labeling:
    1. Line 1: L001.
    2. Line 2: ``STD/PER FLTS CR/5D;'' followed by ``SCHEME'' (or 
``SCH''); followed by ``MIX COMAIL.''
    b. 5-digit scheme carrier routes, required. Pallet must contain 
only carrier route bundles for the same 5-digit scheme under L001. For 
5-digit destinations not part of L001, 5-digit carrier routes pallet 
preparation begins with 2.2e. Labeling:
    1. Line 1: L001.
    2. Line 2: ``STD/PER FLTS''; followed by ``CARRIER ROUTES'' (or 
``CR-RTS''); followed by ``SCHEME'' (or ``SCH''); followed by ``MIX 
COMAIL.''
    c. 5-digit carrier routes, required. Pallet must contain only 
carrier route mail 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/PER FLTS''; followed by ``CR/5D''; followed by 
``MIX COMAIL.''
    d. Merged 5-digit, optional. Not permitted for bundles containing 
noncarrier route automation-compatible flats under 301.3.0. Required 
for all other bundles. Pallet must contain barcoded carrier route 
bundles and barcoded noncarrier route 5-digit bundles 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/PER FLTS''; followed by ``CR/5D''; followed by 
``MIX COMAIL.''
    e. 5-digit, required. Pallet must contain only mail for the same 5-
digit ZIP Code or same 5-digit scheme under L007 (for automation flats 
only under 301.3.0). 5-digit scheme bundles are assigned to 5-digit 
pallets according to the OEL ``label to'' 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/PER FLTS 5D''; followed by ``BARCODED'' (or 
``BC''); followed by ``MIX COMAIL.''
    f. 3-digit, optional, but not available for bundles for 3-digit ZIP 
Code prefixes marked ``N'' in L002. Pallet may contain mail for the 
same 3-digit ZIP Code or the same 3-digit scheme under L008 (for 
automation-compatible flats only under 301.3.0). Three-digit scheme 
bundles are assigned to pallets according to the OEL ``label to'' 3-
digit ZIP Code in L008. Labeling:
    1. Line 1: L002, Column A.
    2. Line 2: ``STD/PER FLTS 3D''; followed by ``BARCODED'' (or 
``BC''); followed by ``MIX COMAIL.''
    g. SCF, required. Pallet may contain carrier route or automation 
mail for the 3-digit ZIP Code groups in L005. Labeling:
    1. Line 1: L002, Column C.
    2. Line 2: ``STD/PER FLTS SCF''; followed by ``BARCODED'' (or 
``BC''); followed by ``MIX COMAIL.''
    h. ASF, required unless bundle reallocation used under 2.3. Pallet 
may contain carrier route or automation mail for the 3-digit ZIP Code 
groups in L602. ADC bundles are assigned to pallets according to the 
``label to'' ZIP Code in L004 as appropriate. Labeling:
    1. Line 1: L602.
    2. Line 2: ``STD/PER FLTS NDC''; followed by ``BARCODED'' (or 
``BC''); followed by ``MIX COMAIL.''
    i. NDC, required. Pallet may contain carrier route or automation 
mail for the 3-digit ZIP Code groups in L601. ADC bundles are assigned 
to pallets according to the ``label to'' ZIP Code in L004 as 
appropriate. Labeling:
    1. Line 1: L601.
    2. Line 2: ``STD/PER FLTS NDC''; followed by ``BARCODED'' (or 
``BC''); followed by ``MIX COMAIL.''
    j. Mixed NDC, required, no minimum. Pallet may contain carrier 
route or automation mail. Pallet includes MXD ADC bundles, prepared 
according to the ``label to'' ZIP in L009, as appropriate. Unless 
authorized by the processing and distribution manager, pallet must be 
entered at the NDC serving the 3-digit ZIP Code of the entry Post 
Office. Labeling:
    1. Line 1: ``MXD'' followed by the information in L601, for the NDC 
serving the 3-digit ZIP Code prefix of the entry Post Office.
    2. Line 2: ``STD/PER FLTS;'' followed by ``BARCODED'' (or ``BC''); 
followed by ``WKG;'' followed by ``MIX COMAIL.''
* * * * *

708 Technical Specifications

* * * * *

7.0 Optional Endorsement Lines (OEL's)

7.1 OEL Use

7.1.1 Basic Standards

* * * * *

Exhibit 7.1.1 OEL Formats

Sortation Level OEL Example

* * * * *
    [Revise Exhibit 7.1.1 to add a new last section to describe 
additional OEL human-readable text for use with combined mailings of 
Standard Mail and Periodicals flats as follows:]

Additional Required Human-Readable Text for Use With Combined Mailings 
of Standard Mail and Periodicals Flats:

* * * * *
    5-Digit Scheme SCH 5-DIGIT 12345 MIX COMAIL (and other sortation 
levels as appropriate)
* * * * *
    [Add a new 7.1.8 to described new OEL requirements for mailers 
combining Standard Mail and Periodicals flats as follows:]

7.1.8 Required OEL Use in Combined Mailings of Standard Mail and 
Periodicals Flats

    Mailers authorized to combine Standard Mail flats and Periodicals 
flats, under 705.15, must apply an OEL identifying the presort level of 
the bundle and other applicable information to each mailpiece as 
specified in 7.1 and the following additional standards:
    a. Each OEL must contain the format elements described in 7.2 and 
must include a ``MIX COMAIL'' human-readable text, as its most right-
justified element.
    b. Mailpieces may include LOT information, in accordance with 
7.1.7, only when there is sufficient space for the human-readable text 
in item a and all other required information.
* * * * *

PART 121--[AMENDED]

0
3. The authority citation for 39 CFR Part 121 continues to read as 
follows:

    Authority:  5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 1001, 
3691.


0
4. Amend Sec.  121.2 by adding a new paragraph (c) to read as follows:

[[Page 10761]]

Sec.  121.2  Periodicals.

* * * * *
    (c) Combined Periodicals/Standard Mail mailing. The Postal Service 
handles combined mailings of Periodicals flats and Standard Mail flats 
as Standard Mail. Periodicals flats included within mailings of 
combined Standard Mail flats and Periodicals flats are subject to the 
service standards applicable to Standard Mail in Sec.  121.3.
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2011-4074 Filed 2-25-11; 8:45 am]
BILLING CODE 7710-12-P