[Federal Register Volume 65, Number 98 (Friday, May 19, 2000)]
[Rules and Regulations]
[Pages 31815-31821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-12444]



[[Page 31815]]

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POSTAL SERVICE

39 CFR Part 111


Preparation Changes for Palletized Standard Mail (A) and Bound 
Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed 
at DBMC Rates

AGENCY: Postal Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service requiring mailers to utilize 
one Labeling List (L605) for palletized mailings of Standard Mail (A) 
packages of flats, letter trays, and sacks prepared on pallets, 
regardless of whether the mail is prepared for entry at destination 
bulk mail center (DBMC) rates; to require mailers to utilize Labeling 
List L605 for Standard Mail (A) and Standard Mail (B) machinable 
parcels prepared in sacks or on pallets for pieces claimed at DBMC 
rates; to implement package reallocation between auxiliary service 
facilities (ASFs) and BMCs for Standard Mail (A) packages of flats 
placed on pallets; and to utilize Labeling List L605 for the 
preparation of all Standard Mail (B) that is claimed at DBMC rates and 
for Bound Printed Matter other than machinable parcels prepared on 
pallets.

DATES: Effective date: October 15, 2000. Compliance is optional as of 
October 15, 2000. Compliance will be required early January 2001 on a 
date to be announced in the Federal Register that coincides with 
implementation of the R2000 omnibus rate case.

FOR FURTHER INFORMATION CONTACT: Karen A. Magazino, (202) 268-3854 or 
Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: On January 4, 2000, the Postal Service 
published for public comment in the Federal Register a proposed rule 
(65 FR 264-270) to allow offshore mail to ride along on DBMC pallets 
(or in sacks of machinable parcels) drop shipped to destination BMCs.
    In addition, the document also proposed requiring mailers to use 
Labeling List L605 for all Standard Mail (A) flats, letter trays, and 
sacks prepared on pallets, regardless of where the mail is deposited or 
the rates are claimed. L605 currently is used for BMC and Origin BMC 
(OBMC) Presort of nonmachinable Parcel Post discounts. L605 delineates 
the ASF service areas and also includes the ZIP Codes for the offshore 
destinations within their respective BMC service areas. With this final 
rule, the offshore mail will ``ride along'' with the mail that is 
eligible for DBMC rate but will not be eligible for the DBMC discount. 
The benefit is that offshore mail will bypass the origin BMC and should 
receive better service. The three BMCs that presently service offshore 
destinations (New Jersey, San Francisco, and Seattle) already are 
receiving BMC service area pallets and sacks that contain offshore mail 
prepared using Labeling List L601. Therefore, the addition of offshore 
mail to these DBMC containers should have no negative impact.
    Requiring the use of Labeling List L605 for all Standard Mail (A) 
flats, letter trays, and sacks prepared on pallets regardless of 
whether DBMC rates are claimed also will ensure that the eight ASFs 
always are included in the presort logic hierarchy and that ASF pallets 
are prepared when the volume warrants.
    Labeling List L601 will be retained and will continue to be 
applicable for Standard Mail (A) and Standard Mail (B) machinable 
parcels, except when DBMC rates are claimed for such mail deposited at 
ASFs.
    Current Labeling List L602, which contains the ZIP Code ranges for 
DBMC rate eligibility, will be deleted from the DMM. This information 
will appear, instead, in DMM Module E. This Final Rule does change 
current standards for DBMC rate eligibility. However, DMM E651.5.0 has 
been revised to reorganize and clarify eligibility requirements for 
Standard Mail (A) DBMC discounts.

Package Reallocation To Protect the BMC Pallet

    To ensure that the creation of an ASF pallet does not take away 
from BMC pallets, the Postal Service will allow protection of the BMC 
pallet through the optional use of package reallocation between a 
``child'' ASF and the ``parent'' BMC pallet. Package reallocation for 
protecting a BMC pallet is similar to the option implemented on July 
29, 1999, for protecting the SCF pallet. In protecting a BMC pallet, 
any amount of mail necessary to achieve the minimum BMC pallet weight 
could be reallocated from one ASF pallet and the ASF pallet could be 
eliminated if necessary. Mailers who choose to utilize package 
reallocation to protect the BMC pallet must use PAVE-certified presort 
software.

Utilization of Labeling Lists L601 and L605 for Preparation of 
Standard Mail (B)

    Rather than sorting to L601, palletized Bound Printed Matter (other 
than machinable parcels) will be required to be prepared using L605 for 
sortation of mail to both BMC and ASF pallets. L601 will continue to be 
used for sortation of Bound Printed Matter machinable parcels both in 
sacks and on pallets.
    The elimination of Labeling List L602 affects Parcel Post (Parcel 
Select) claimed at DBMC rates. Rather than using L602 for both DBMC 
rate eligibility and mail preparation, Parcel Post (Parcel Select) 
mailers claiming DBMC rates must sort to and deposit mail at a BMC or 
ASF using L605. However, eligibility for the DBMC rates (which does not 
change) will be determined using new DMM Exhibit E652.1.3d. For Parcel 
Post (Parcel Select) machinable parcels, mailers claiming the DBMC 
rates may continue the current practice of opting to sort mail using 
L601 (BMC sortation only) under the condition that mail for 3-digit ZIP 
Codes served by an ASF in Exhibit E652.1.3d is not eligible for DBMC 
rates, nor is mail for 3-digit ZIP Codes that do not appear on Exhibit 
E652.1.3d.
    L605 will continue to be used for BMC Presort and OBMC Presort 
mailings of nonmachinable Parcel Post. L601 will continue to be 
required for machinable parcels claiming BMC Presort and OBMC Presort 
rates.

Summary of Comments From the Proposed Rule

    The Postal Service received three pieces of correspondence 
commenting on the Proposed Rule. Respondents included one mailer and 
two direct marketing companies.
    The specific points raised in the comments are presented below, 
organized by general comments and by specific comments on particular 
issues. In addition to receiving these comments from the mailing 
industry, the Postal Service has had extensive ongoing exchanges of 
viewpoints with representatives of the mailing industry and software 
vendors. This cooperative effort has led to the development of revised 
standards that the Postal Service believes strikes a better balance 
between the interests of the mailers and those of the Postal Service.

1. General Comments

    Two comments were received indicating that the elimination of L602 
will create a positive effect in the data processing area by using one 
labeling list for packages of flats, letter trays, and sacks prepared 
on pallets. Commenters further explained that it is better to use one 
list for identifying where the mail is going independent of the drop 
shipment process. One mailer asked if the elimination of L602 was 
required to implement this rule. The elimination of L602 is necessary 
because mail for offshore destinations is not entitled to

[[Page 31816]]

the DBMC rate, these ZIPS are not included in L602, and mail for 
offshore destinations currently cannot be placed on DBMC pallets. 
Furthermore, when a mailer is sorting a list for entry at DBMC rates 
using this list, the offshore mail will be entered at the origin BMC 
and must be processed at the origin BMC and transported through the 
postal network to the destinating BMC that serves the offshore ZIP 
Codes. In addition, the offshore mail is frequently placed in sacks 
because it cannot be placed on DBMC pallets.
    One commenter indicated that the creation of the ASF pallet, when 
volume warrants regardless of whether or not the mail is prepared for 
entry at the DBMC rates, should have a positive effect on their 
manufacturing area. Currently, if mail is prepared for DBMC rates and 
drop shipment is not utilized, then the pallet label must be changed to 
the appropriate BMC destination. Under this final rule, this would not 
happen and labor costs could be saved.

2. Eligibility of Offshore Destination Mail for the DBMC Discount

    Two comments were received from direct marketing companies 
proposing that the offshore destinations that ``ride-along'' with the 
DBMC mail be eligible for the DBMC discount. The commenters also 
indicated that their customers would be paying freight costs to move 
these pieces, and will be preparing mail to enter the postal system 
further into the process, but will not be compensated by receiving the 
DBMC discount. The Postal Service cannot extend the DBMC discount for 
offshore destinations. The Postal Service needs the rates to fully 
reflect the true processing costs when offering a discount. This mail 
is unusual in its origin-destination characteristics and does not 
necessarily comply with the existing destination entry discount 
structure. The Postal Service still incurs significant transportation 
costs while moving the mail to the offshore destinations. In addition, 
the Postal Service does not want to discourage mailers from taking 
advantage of the DSCF discounts that are available. Sectional center 
facility mail entered at these offshore destinations might revert to 
DBMC entry if the DBMC discount was offered.

3. No Discounts for ASF Mail on BMC Pallets

    One commenter was concerned that a discount does not exist for ASF 
mail on BMC pallets. If the discount requirements were more clearly 
documented, drop ship mailers could evaluate the costs and benefits of 
paying transportation costs for the ASF mail. The Postal Service would 
like to emphasize that the eligibility of ASF mail to qualify for the 
DBMC discount has not changed. ASF pallets are allowed and required 
only if the DBMC rate is claimed for mail deposited at the ASF. The 
significant change resulting from this final rule is that DMM E651 
Exhibit 5.1 and DMM E652 Exhibit 1.3 will be used to determine 
eligibility, not Labeling List L602. If packages of flats on pallets 
are reallocated from an ASF pallet to a BMC pallet under M045.6.0, mail 
for the ASF ZIP Codes placed on the BMC pallet are not eligible for the 
DBMC rates.

4. Machine-Readable List for Section E and the Parent/Child BMC/ASF 
Table

    One commenter stated that if L602 (which lists the ZIP Codes 
entitled to the DBMC discount) is moved from module L to module E, then 
the Postal Service must still provide a machine-readable list of these 
ZIP Codes. This commenter maintains if this list is not provided in 
machine-readable form, then the authors of computer presort and entry 
point analysis software, such as PAVE-certified software and Mail.dat 
application software, would each be required to key in updates by hand 
from a hard-copy printed list. Manual updates also could create an 
unacceptable amount of redundant work and would create an environment 
prone to numerous errors. This commenter also stated the Parent/Child 
BMC/ASF table should be made available in machine-readable form because 
the proposed changes for the protected BMC pallets will make this 
information increasingly important to authors of PAVE-certified and 
Mail.dat application software. The Postal Service has had extensive 
ongoing discussions with representatives from the USPS National 
Customer Support Service center and Distribution Networks at USPS 
headquarters. To address this concern the Postal Service will provide 
an electronic product to mailers of the Parent/Child table and the new 
Module E eligibility tables. The Postal Service believes that this 
effort strikes a better balance between the interests of the mailers 
and their concerns and the needs of the Postal Service to provide high 
quality service and optimize operational efficiency.

5. Package Reallocation

    One commenter emphasized that the package reallocation options 
should be clearly stated. To clarify the package reallocation option, 
the Postal Service will review the DMM language for clarification 
purposes. In addition, a new Quick Service Guide will be designed to 
demonstrate the standards for package reallocation, protecting the SCF 
or BMC pallet level. Package reallocation will remain optional and if 
performed must be done for the complete mailing job using PAVE-
certified software.

6. Lead Time for Software Vendors

    One commenter indicated that the lead time for software changes 
should be factored into the implementation schedule. For the required 
elements, the Postal Service met with the software vendors and mailers 
to discuss this concern. Based on the comments received the Postal 
Service has determined to place all the provisions of this final rule 
into effect on an optional basis on October 15, 2000. The required 
provisions of this final rule will be required on the same date that 
new rules are implemented for the R-00 Omnibus Rate Case (expected in 
January 2001). Mail presented on and after that effective date must be 
prepared in accordance with the required provisions of this Final Rule. 
Generally, requests for exceptions to these required preparation 
standards on or after the implementation date will not be honored if 
the reason for the request is that software was not available to 
mailers in time to prepare the mailings. It is expected that this 
phased implementation period will provide software vendors and mailers 
enough time to develop, test, and implement the required provisions so 
that the mailings entered on or after the effective date will be 
prepared under these new standards.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations (see 39 
CFR part 111).

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 the Domestic Mail Manual (DMM) 
as set forth below:

Domestic Mail Manual (DMM)

E  ELIGIBILITY

E600  Standard Mail

* * * * *

[[Page 31817]]

E650  Destination Entry

E651  Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *
5.0  DBMC DISCOUNT

5.1  Definition

    [Amend 5.1 by replacing ``L602'' with ``E651.5.0 Exhibit 5.1'' to 
read as follows:]
    For this standard, destination bulk mail center (DBMC) includes all 
bulk mail centers (BMCs) and auxiliary service facilities (ASF's) as 
shown in Exhibit 5.1.
    [Add new Exhibit 5.1.]

                                        Exhibit 5.1--BMC/ASF--DBMC Rates
----------------------------------------------------------------------------------------------------------------
       Eligible destination ZIP codes                                    DBMC pallets
----------------------------------------------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127,     BMC NEW JERSEY NJ 00102
 340.
010-067, 120-123, 128, 129.................  BMC SPRINGFIELD MA 05500
130-136, 140-149...........................  ASF BUFFALO NY 140
150-168, 260-266, 439-447..................  BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199..................  BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268.......  BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376.............  BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368,     BMC ATLANTA GA 31195
 373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,   BMC JACKSONVILLE FL 32099
 347, 349.
369-372, 375, 380-397, 700, 701, 703-705,    BMC MEMPHIS TN 38999
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-    BMC CINCINNATI OH 45900
 427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497..................  BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689...  BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............  BMC MPLS/ST PAUL MN 55202
570-577....................................  ASF SIOUX FALLS SD 570
565, 567, 580-588..........................  ASF FARGO ND 580
590-599, 821...............................  ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600-   BMC CHICAGO IL 60808
 611, 613.
420, 423, 424, 475-479, 614-620, 622-631,    BMC ST LOUIS MO 63299
 633-639.
640, 641, 644-658, 660-662, 664-679, 739...  BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730
 749.
706, 710-712, 718, 733, 747, 750-799, 885..  BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831.............  BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979.......  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935....  BMC LOS ANGELES CA 90901
894, 895, 897, 936-966.....................  BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........  BMC SEATTLE WA 98000
----------------------------------------------------------------------------------------------------------------

    [Delete current 5.2 and 5.3 and replace with new 5.2 through 5.5. 
Redesignate current 5.4 and 5.5 as 5.6 and 5.7.]

5.2  General Eligibility

    Pieces in a mailing that meet the standards in 1.0 through 5.0 are 
eligible for the DBMC rate when they meet all of the following 
conditions: (1) are deposited at a BMC or ASF, (2) are addressed for 
delivery to one of the 3-digit ZIP Codes served by the BMC or ASF where 
deposited that are listed in Exhibit 5.1, and (3) are placed in a tray, 
sack, or pallet (subject to the standards for the rate claimed) that is 
labeled to the BMC or ASF where deposited, or labeled to a postal 
facility within that BMC's or ASF's service area (see Exhibit 5.1). If 
packages of flats on pallets are reallocated from an ASF pallet to a 
BMC pallet under M045.6.0, mail for the ASF ZIP Codes placed on the BMC 
pallet are not eligible for the DBMC rates. DBMC rate mail must also be 
eligible for Presorted, automation, or Enhanced Carrier Route rates, 
subject to the corresponding standards for those rates.

5.3  Eligibility for ADC or AADC Sortation

    All pieces in an ADC or AADC sack or tray are eligible for the DBMC 
discount if the ADC or AADC facility ZIP Code (as shown on Line 1 of 
the corresponding container label) is within the service area of the 
BMC or ASF as shown in Exhibit 5.1 at which the sack or tray is 
deposited. All pieces in a palletized ADC package or bundle are 
eligible for the DBMC discount if the ADC facility that is the 
destination of the package or bundle (determined by using the label to 
ZIP Code in Column B of L004) is within the service area of the BMC or 
ASF at which it is deposited as shown in Exhibit 5.1.

5.4  Eligibility in Mixed ADC or Mixed AADC Containers

    Mail in mixed ADC or mixed AADC sacks or trays qualify for the DBMC 
rates only if all the pieces in the sack or tray are for the service 
area of the DBMC or DASF as shown in Exhibit 5.1. Mailers who opt to 
claim the DBMC rates for mail in Mixed ADC or Mixed AADC containers 
must prepare separate mixed ADC or mixed AADC sacks or trays for pieces 
eligible for and claimed at the DBMC rate and for pieces not claimed at 
the DBMC rate. Otherwise applicable restrictions (e.g., minimum volume, 
number of less-than-full trays) are excepted when necessary to comply 
with this standard.

5.5  Additional Standards for Machinable Parcels

    Additional standards are as follows:
    a. Destination BMC/ASF Containers. Machinable parcels palletized 
under M045 or sacked under M610 may be sorted to destination BMCs under 
L601 or to destination BMCs and ASFs under L605. When machinable 
parcels are sorted to both destination BMCs and ASFs under L605, they 
qualify for DBMC rates under 5.2. Mailers also may opt to sort 
machinable parcels to only destination BMCs under L601. If machinable 
parcels are sorted under L601, then only mail for 3-digit ZIP Codes 
served by a BMC as listed in Exhibit 5.1 are eligible for DBMC rates 
(i.e., mail for 3-digit ZIP Codes served by an ASF in Exhibit 5.1 is 
not eligible

[[Page 31818]]

for DBMC rates, nor is mail for 3-digit ZIP Codes that do not appear on 
Exhibit 5.1).
    b. Mixed BMC Containers. Pieces in mixed BMC sacks or on mixed BMC 
pallets that are sorted to the origin BMC under M045 or M610 are 
eligible for the DBMC rates if both of the following conditions are 
met:
    (1) The mixed BMC sack or pallet is entered at the origin BMC 
facility to which it is labeled.
    (2) The pieces are for 3-digit ZIP Codes listed as eligible 
destination ZIP Codes for that BMC in Exhibit 5.1.
* * * * *

E652  Parcel Post

1.0  BASIC STANDARDS
* * * * *

1.2  General

    [Revise 1.2 to read as follows:]
    For Parcel Post mailings claimed at DBMC, DSCF, or DDU rates, 
pieces must meet the applicable standards in 1.0 through 6.0 and the 
following criteria:
    a. May be bedloaded, on pallets, in pallet boxes on pallets, in 
sacks, or in other authorized containers as specified in 2.0 through 
6.0, depending on the facility at which the pieces are deposited.
    b. Is not plant-loaded.
    c. Be part of a single mailing of 50 or more pieces that are 
eligible for and claimed at any Parcel Post rate or rates.
    d. Be deposited at a destination BMC (DBMC) or destination 
auxiliary service facility (DASF) or other equivalent facility; 
destination sectional center (DSCF); or destination delivery unit (DDU) 
as applicable for the rate claimed and as specified by the USPS.
    e. Be addressed for delivery within the ZIP Code ranges that the 
applicable entry facility serves.
    [Revise 1.3 to read as follows:]

1.3  DBMC Rates

    For DBMC rates, pieces must meet the applicable standards in 1.0 
through 6.0 and the following:
    a. Pieces must be part of a Parcel Post mailing that is deposited 
at a BMC or ASF under L605.
    b. Pieces deposited at each BMC or ASF must be addressed for 
delivery within the ZIP Code range of that facility.
    c. Pieces must be addressed for delivery within a ZIP Code eligible 
for DBMC rates under Exhibit 1.3, and if sacked or palletized must be 
prepared in accordance with M041 and M045 or M630. Mail meeting the 
additional criteria in 4.0 may be deposited at a designated facility 
other than the BMC or ASF where the DBMC parcels would otherwise be 
deposited.
    [Move formerly designated 1.3 (e) and (f) to new section as 1.4 (a) 
and (b).]
    [Add new Exhibit 1.3]

                                        Exhibit 1.3--BMC/ASF--DBMC Rates
----------------------------------------------------------------------------------------------------------------
       Eligible destination ZIP codes                                    DBMC pallets
----------------------------------------------------------------------------------------------------------------
005, 068-079, 085-098, 100-119, 124-127,     BMC NEW JERSEY NJ 00102
 340.
010-067, 120-123, 128, 129.................  BMC SPRINGFIELD MA 05500
130-136, 140-149...........................  ASF BUFFALO NY 140
150-168, 260-266, 439-447..................  BMC PITTSBURGH PA 15195
080-084, 137-139, 169-199..................  BMC PHILADELPHIA PA 19205
200-212, 214-239, 244, 254, 267, 268.......  BMC WASHINGTON DC 20499
240-243, 245-249, 270-297, 376.............  BMC GREENSBORO NC 27075
298, 300-312, 317-319, 350-352, 354-368,     BMC ATLANTA GA 31195
 373, 374, 377-379, 399.
299, 313-316, 320-339, 341, 342, 344, 346,   BMC JACKSONVILLE FL 32099
 347, 349.
369-372, 375, 380-397, 700, 701, 703-705,    BMC MEMPHIS TN 38999
 707, 708, 713, 714, 716, 717, 719-729.
250-253, 255-259, 400-418, 421, 422, 425-    BMC CINCINNATI OH 45900
 427, 430-433, 437, 438, 448-462, 469-474.
434-436, 465-468, 480-497..................  BMC DETROIT MI 48399
500-516, 520-528, 612, 680, 681, 683-689...  BMC DES MOINES IA 50999
498, 499, 540-551, 553-564, 566............  BMC MPLS/ST PAUL MN 55202
570-577....................................  ASF SIOUX FALLS SD 570
565, 567, 580-588..........................  ASF FARGO ND 580
590-599, 821...............................  ASF BILLINGS MT 590
463, 464, 530-532, 534, 535, 537-539, 600-   BMC CHICAGO IL 60808
 611, 613.
420, 423, 424, 475-479, 614-620, 622-631,    BMC ST LOUIS MO 63299
 633-639.
640, 641, 644-658, 660-662, 664-679, 739...  BMC KANSAS CITY KS 64399
730, 731, 734-738, 740, 741, 743-746, 748,   ASF OKLAHOMA CITY OK 730
 749.
706, 710-712, 718, 733, 747, 750-799, 885..  BMC DALLAS TX 75199
690-693, 800-816, 820, 822-831.............  BMC DENVER CO 80088
832-834, 836, 837, 840-847, 898, 979.......  ASF SALT LAKE CTY UT 840
850, 852, 853, 855-857, 859, 860, 863, 864.  ASF PHOENIX AZ 852
865, 870-875, 877-884......................  ASF ALBUQUERQUE NM 870
889-891, 893, 900-908, 910-928, 930-935....  BMC LOS ANGELES CA 90901
894, 895, 897, 936-966.....................  BMC SAN FRANCISCO CA 94850
835, 838, 970-978, 980-986, 988-994........  BMC SEATTLE WA 98000
----------------------------------------------------------------------------------------------------------------

    [Redesignate 1.4 through 1.5 as 1.5 through 1.6 and insert new 
number 1.4 to read as follows:]

1.4  DSCF and DDU Rates

    For DSCF and DDU rates, pieces must meet the applicable standards 
in 1.0 through 1.6 and the following criteria:
    [Insert old 1.3e and 1.3f as new 1.4a and 1.4b.]
* * * * *
L  LABELING LISTS
* * * * *

L600  Standard Mail

    [Amend the heading of Labeling List 601 by removing ``Machinable 
Parcels'' to read as follows:]

L601  Bulk Mail Centers

    [Revise introductory paragraph to read as follows:]
    Use this list for the following:

[[Page 31819]]

    (1) Standard Mail (A) machinable parcels if ASF mail is not 
prepared and claimed at DBMC rates.
    (2) Bound Printed Matter machinable parcels.
    (3) Parcel Post if ASF mail is not prepared and claimed at DBMC 
rates except non-machinable BMC and OBMC Presort rate mail.
    (4) Presorted Special Standard Mail and Presorted Library Mail to 
BMC destinations.
* * * * *
    [Remove Labeling List 602.]
* * * * *
    [Revise the heading of Labeling List 605 to read as follows:]

L605  BMCs/ASFs

    [Revise introductory paragraph to read as follows:]
    Use this list for the following:
    (1) Standard Mail (A) pallets of packages of flats, letter trays, 
and/or sacks.
    (2) Parcel Post machinable parcels if ASF mail is entered at the 
ASF and claimed at the DBMC rates.
    (3) Standard Mail (A) machinable parcels if ASF mail is entered at 
the ASF and claimed at DBMC rates.
    (4) Parcel Post nonmachinable parcels claimed at OBMC and BMC 
Presort rates.
    (5) Bound Printed Matter packages and/or sacks on pallets.
* * * * *
M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS
* * * * *

1.2  Presort Levels

    [Amend 1.2 by revising 1.2n to read as follows:]
    Terms used for presort levels are defined as follows:
* * * * *
    n. ASF/BMC: all pieces are addressed for delivery in the service 
area of the same auxiliary service facility (ASF) or bulk mail center 
(BMC) (see L601 or L605, as applicable).
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION

5.1  Presort

    [Amend 5.1 by revising the last two sentences to read as follows:]
    * * * The standards for package reallocation to protect the SCF or 
BMC pallet (M045.5.0 and 6.0) are optional methods of pallet 
preparation designed to retain as much mail as possible at the SCF or 
BMC level. These standards may result in some packages of Periodicals 
and Standard Mail (A) flats and irregular parcels that are part of a 
mailing job prepared in part as palletized flats at automation rates 
not being placed on the finest level of pallet possible. Mailers must 
use PAVE-certified presort software to prepare mailings using package 
reallocation (package reallocation is optional, but, if performed, must 
be done for the complete mailing job).

5.2  Required Preparation

    [Amend 5.2 by revising 5.2a to read as follows:]
    These standards apply to:
    a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC 
Presort, OBMC Presort, DSCF, and DDU rate mail). A pallet must be 
prepared to a required sortation level when there are 500 pounds of 
Periodicals or Standard Mail packages, sacks, or parcels or six layers 
of Periodicals or Standard Mail (A) letter trays. For packages of 
Periodicals flats, irregular parcels, and packages of Standard Mail (A) 
flats on pallets prepared under the standards for package reallocation 
(M045.5.0), not all mail for a required 5-digit destination is required 
to be on a 5-digit pallet or optional 5-digit scheme pallet. For 
packages of Standard Mail (A) flats on pallets prepared under the 
standards for package reallocation (M045.6.0), not all mail for a 
required ASF pallet is required to be on an ASF pallet. Mixed pallets 
of sacks, trays, or machinable parcels must be labeled to the BMC or 
ADC (as appropriate) serving the post office where mailings are entered 
into the mailstream. The processing and distribution manager of that 
facility may issue a written authorization to the mailer to label mixed 
BMC or mixed ADC pallets to the post office or processing and 
distribution center serving the post office where mailings are entered. 
These pallets contain all mail remaining after required and optional 
pallets are prepared to finer sortation levels under M045, as 
appropriate.
* * * * *
6.0  COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE 
MAILPIECES
* * * * *

6.4  Standard Mail (A)

    [Amend 6.4 by and replacing the first sentence with the following 
sentence to read as follows:]
    To copalletize different Standard Mail (A) flat-size mailings, the 
mailer must consolidate on pallets all independently sorted packages 
from each mailing to achieve the finest presort level for the mailing, 
except that a copalletized mailing prepared under M045.5.0 or 6.0, 
using package reallocation, may not always result in all packages being 
placed on the finest pallet level possible.* * *
* * * * *

M045  Palletized Mailings

* * * * *
4.0  PALLET PRESORT AND LABELING

4.1  Packages, Bundles, Sacks, or Trays on Pallets

    [Amend 4.1 by revising 4.1e to read as follows:]
    Preparation sequence and Line 1 labeling:
* * * * *
    e. As appropriate:
    (1) Periodicals: ADC: required; for Line 1, use L004.
    (2) Standard Mail: BMC/ASF: required, except that an ASF may not be 
required if using package reallocation used under 6.0; for Line 1, use 
L605.
* * * * *

4.2  Machinable Parcels--Standard Mail

    [Amend 4.2 by revising 4.2b and 4.2c to read as follow:]
    Preparation sequence and Line 1 labeling:
* * * * *
    b. ASF: allowed and required only if DBMC rate is claimed for mail 
deposited at ASF; for Line 1, use L605. Exhibit E651.5.1 or Exhibit 
E652.1.3 determines DBMC rate eligibility.
    c. Destination BMC: required; for Line 1, use L601 (L605 if DBMC 
rate is claimed for mail deposited at ASF under 4.2b).
* * * * *
    [Revise heading of 5.0 to read as follows:]

[[Page 31820]]

5.0  PACKAGE REALLOCATION TO PROTECT SCF PALLET FOR PERIODICALS FLATS 
AND IRREGULAR PARCELS AND STANDARD MAIL (A) FLATS ON PALLETS

5.1  Basic Standards

    [Amend 5.1 by revising the first sentence to read as follows:]
    Package reallocation to protect the SCF pallet is an optional 
preparation method (if performed, package reallocation must be done for 
the complete mailing job); only PAVE-certified presort software may be 
used to create pallets under the standards in 5.2 through 5.4 * * *
* * * * *
    [Redesignate 6.0 through 14.0 as 7.0 through 15.0, respectively, 
and insert new 6.0 to read as follows:]
6.0  PACKAGE REALLOCATION TO PROTECT BMC PALLET FOR STANDARD MAIL (A) 
FLATS ON PALLETS

6.1  Basic Standards

    Package reallocation to protect the BMC pallet level is an optional 
preparation method (if performed, package reallocation to protect the 
BMC pallet must be done for the complete mailing job); only PAVE-
certified presort software may be used to create pallets under the 
standards in 6.2 through 6.4. The software will determine if mail for a 
BMC service area would fall beyond the BMC level when ASF pallets are 
prepared. Reallocation is performed only when there is mail for the BMC 
service area that would fall beyond the BMC pallet level as a result of 
an ASF pallet being prepared. The amount of mail required to bring the 
mail that would fall beyond the BMC pallet level back to a BMC level is 
the minimum volume that would be reallocated from an ASF pallet, where 
possible. The ``parent'' BMCs listed in Exhibit 6.1 can be protected 
with package reallocation by using mail from the ASF ``child'' pallets.

                 Exhibit 6.1--``Parent'' BMC/Child'' ASF
------------------------------------------------------------------------
                                           ``Child'' ASF ZIP code areas
      ``Parent'' BMC service areas                    served
------------------------------------------------------------------------
Pittsburgh BMC.........................  Buffalo ASF: 130-136; 140-149
Denver BMC.............................  Albuquerque ASF: 865, 870-875,
                                          877-884
                                         Phoenix ASF: 850, 852, 853, 855-
                                          857, 859, 860, 863, 864
                                         Salt Lake City ASF: 832-834,
                                          836, 837, 840-847, 898, 979
                                         Billings ASF: 590-599, 821
Dallas BMC.............................  Oklahoma City ASF: 730, 731,
                                          734-738, 740, 741, 743-746,
                                          748, 749
Des Moines BMC.........................  Sioux Falls ASF: 570-577
Minneapolis BMC........................  Fargo ASF: 565, 567, 580-588
------------------------------------------------------------------------

6.2  General Reallocation Rules

    In general, when reallocating:
    a. The reallocation process does not affect package preparation. 
Reallocate only complete packages and only the minimum number of 
packages necessary to create a BMC pallet that meets the 250-pound 
minimum pallet weight. Based on the weight of individual pieces within 
a package and packaging parameters, the weight of mail that is 
reallocated may be slightly more than the minimum volume required to 
create a BMC pallet.
    b. Use Exhibit 6.1 to reallocate packages from the ASF pallet to 
create a BMC pallet. The ASF pallet may be eliminated to protect the 
BMC pallet.
    c. Reallocate mail only from the ASF pallet. Package reallocation 
is used only between the ``parent'' BMC and the ``child'' ASF. Mail 
from finer levels of pallets (e.g., SCF pallet) may not be reallocated.
    d. Mailers may use any minimum pallet weight(s) permitted by 
standard and may use different minimum weights for different pallet 
levels in conjunction with package reallocation.

6.3  Reallocation of Packages from ASF pallets

    When reallocating packages from ASF pallets:
    a. Use Exhibit 6.1 to identify an ASF pallet of adequate weight 
that can support reallocation of one or more packages to bring the mail 
that has fallen through the BMC level back to the BMC level without 
eliminating the ASF pallet. A sufficient amount of mail must remain on 
the ASF pallet after reallocation to meet the ASF pallet weight minimum 
of 250 pounds. If an ASF pallet of adequate weight is available, then 
create a BMC pallet by combining the reallocated mail from the ASF 
pallet with the mail that would fall beyond the BMC pallet level.
    b. If no single ASF pallet within the BMC service area contains an 
adequate volume of mail to allow reallocation of the portion of the 
mail on a pallet as described in 6.3a, then eliminate one ASF pallet 
and reallocate all of the mail to create a BMC pallet.

6.4  Documentation

    Mailings must be supported by documentation produced by PAVE-
certified software meeting the standards in P012.
* * * * *

10.0  Pallets of Machinable Parcel

* * * * *
    [Amend 10.3, formerly 9.3, to read as follows:]

10.3  DBMC Rate

    If applicable, a BMC pallet may include pieces that are eligible 
for the DBMC rate and pieces that are ineligible.
* * * * *

M073  Combined Mailings of Standard Mail (A) and Standard Mail (B) 
Parcels

1.0 COMBINED MACHINABLE PARCELS--RATES OTHER THAN PARCEL POST OBMC 
PRESORT, BMC PRESORT, DSCF, AND DDU
* * * * *

1.6  Sack Preparation

    [Amend 1.6 by revising 1.6a(2) and 1.6a(3) to read as follows:]
    The requirements for sack preparation are as follows:
    a. Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    (2) Destination ASF: allowed and required only if DBMC rate is 
claimed for mail deposited at ASF (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L605. DBMC rate eligibility is 
determined by Exhibit E651.1.3.
    (3) Destination BMC: required (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L605 if DBMC rate is claimed for mail 
deposited at ASF under 4.2b; otherwise,

[[Page 31821]]

use L601. DBMC rate eligibility is determined by Exhibit E651.5.1.
* * * * *

M610  Presorted Standard Mail (A)

* * * * *
5.0  MACHINABLE PARCELS
* * * * *

5.2  Sack Preparation

    [Amend 5.2 by revising 5.2(b) and 5.2(c) to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. Destination ASF: allowed and required only if DBMC rate is 
claimed for mail deposited at ASF (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L605. DBMC rate eligibility is 
determined by Exhibit E651.1.3.
    c. Destination BMC: required (minimum of 10 pounds, smaller volume 
not permitted); for Line 1, use L605 if DBMC rate is claimed for mail 
deposited at ASF under 5.2b; otherwise, use L601. DBMC rate eligibility 
is determined by Exhibit E651.5.1.
* * * * *

M630  Standard Mail (B)

* * * * *
6.0  MACHINABLE PARCELS
* * * * *

6.2  Sack Preparation

    [Amend 6.2 by revising 6.2b and 6.2c to read as follows:]
    Sack size, preparation sequence, and Line 1 labeling:
* * * * *
    b. ASF: allowed and required only if DBMC rate is claimed for mail 
deposited at ASF (minimum of 10 pieces/20 pounds/1,000 cubic inches, 
smaller volume not permitted); for Line 1, use L605. Exhibit E652.1.3d 
determines DBMC rate eligibility.
    c. Destination BMC: required (minimum of 10 pieces/20 pounds/1,000 
cubic inches, smaller volume not permitted); for Line 1, use L605 if 
DBMC rate is claimed for mail deposited at ASF under 6.2b; otherwise, 
use L601. Exhibit E652.1.3d determines DBMC rate eligibility.
* * * * *
P  POSTAGE AND PAYMENT METHODS

P000  Basic information

P010  General Standards

* * * * *

P012  Documentation

* * * * *
2.0  STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, AND 
STANDARD MAIL (A)
* * * * *

2.2  Format and Content

    [Amend 2.2 by replacing last two sentences of 2.2d (4) to read as 
follows:]
    For First-Class Mail, Periodicals, and Standard Mail (A), 
standardized documentation includes:
* * * * *
    d. For packages on pallets, the body of the listing reporting these 
required elements:
* * * * *
    (4) * * * Document SCF or BMC pallets created as a result of 
package reallocation under M045.5.0 or 6.0 on the USPS Qualification 
Report by designating the protected pallet with an identifier of 
``PSCF'' (for a SCF pallet) or ``PBMC'' (for a BMC pallet). These 
identifiers are required to appear only on the USPS Qualification 
Report; they are not required to appear on pallet labels or in any 
other mailing documentation.
* * * * *

2.4  Sortation level

    [Amend 2.4 by inserting new sortation level and abbreviation 
immediately below ``SCF [pallets created from package reallocation]'' 
to read as follows:]
    The actual sortation level (or corresponding abbreviation) is used 
for the package, tray, sack, or pallet levels required by 2.2 and shown 
below:

------------------------------------------------------------------------
                      Sortation level                       Abbreviation
------------------------------------------------------------------------
 
                  *        *        *        *        *
BMC [pallets created from package reallocation]...........         PBMC
 
                  *        *        *        *        *
------------------------------------------------------------------------


Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-12444 Filed 5-18-00; 8:45 am]
BILLING CODE 7710-12-P