[Federal Register Volume 65, Number 131 (Friday, July 7, 2000)]
[Rules and Regulations]
[Pages 41877-41879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17094]


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POSTAL SERVICE

39 CFR Part 111


Presentation of First-Class Mail and Standard Mail (A) Automation 
Letters and Cards for Verification Under New SAVE Verification 
Procedures and Revisions to Combined Mailing Standards

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: On December 9, 1999 (64 FR 68965), the Postal Service 
published a proposed rule amending the Domestic Mail Manual (DMM) to 
enable adoption of new mail verification procedures, now in the process 
of being implemented. The Postal Service also proposed one DMM change 
specific to combined mailings. This notice announces the adoption of 
these changes. They support the new Standardized Acceptance and 
Verification (SAVE) procedures for First-Class Mail and Standard Mail 
(A) automation letters and cards, and limit the weight of First-Class 
Mail with precanceled stamps in combined mailings. This notice also 
responds to several comments received.

EFFECTIVE DATE: July 13, 2000.

FOR FURTHER INFORMATION CONTACT: Scott Hamel, (703) 329-3660.

SUPPLEMENTARY INFORMATION: In summary, as of July 13, 2000, the 
following Domestic Mail Manual changes are being adopted to implement 
the new verification procedures for automation letter mailings and to 
revise the requirements for combined mailings:
    (1) For First-Class Mail and Standard Mail (A) automation letter 
and card mailings, mixed AADC trays must be physically separated from 
other trays when the mail is presented to the USPS for verification.
    (2) For all First-Class Mail and Standard Mail (A) automation 
letter and card mailings containing 10,000 or more pieces, 
documentation must be submitted on paper in a standardized format in 
accordance with DMM P012. Alternatively, if authorized by the Postal 
Service, the standardized documentation may be submitted in an easily 
accessible electronic format.
    (3) For combined mailings, mailers may not include First-Class Mail 
pieces that weigh over 1 ounce and are paid with precanceled stamps.

Comments Received

    The Postal Service received three comments in response to the 
December 9, 1999, Proposed Rule. One came from a professional mailer 
and two were from

[[Page 41878]]

mailer associations. None were received directly from Postal Service 
customers. The comments fell into two broad categories: those relating 
to the published policy proposals, and those relating to the actual 
procedures to be used by Postal Service mail acceptance personnel in 
the verification process. The procedures were not included in the 
published notice but instead have been made available to mailers and 
their associations upon request. In addition, the Manager, Northern 
Virginia Rates and Classification Service Center has contacted mailer 
associations directly to discuss them. The procedures were not 
published with the policy proposals because the procedures do not 
impact the way mailers prepare mail. They change only the way the 
Postal Service verifies mail. Nonetheless, mailers did participate in 
the development of SAVE from its inception. In fact, several of its 
salient features were introduced by mailers. SAVE continues to evolve 
as we gain experience and evaluate and apply mailer suggestions.
    One of the primary purposes of SAVE is to create a comprehensive, 
exact description of the procedures for postal clerks to use to verify 
automation letter and card mailings. The Postal Service committed to 
make the procedures available to mailers as well. In this way, the 
process can be monitored for integrity by mailers themselves.
    The current version of the SAVE procedures (for MLOCR and barcode 
sorter mailers) is available from the Postal Service's Web site at 
www.usps.com/mptqm/downloads.htm. Very minor modifications may be made 
for other automation letter and card mailers as the result of current 
field testing. Any resulting changes will appear on the same Web site 
in late July 2000. The following paragraphs address mailers' comments 
to the proposed DMM changes.

Segregation of Mixed AADC Trays

    Two comments were concerned that the Postal Service planned to 
scrutinize trays that tend to be error prone and then draw unfair 
conclusions about a mailing as a whole. A third comment questioned the 
value of the proposal to the Postal Service, but felt strongly that we 
needed to be clear in what is intended by ``physically segregated.''
    Regarding the fairness issue, the procedures address the comment by 
introducing a new ``weight factor'' when computing error percentages. 
This approach accomplishes the joint goals of encouraging mailers to 
improve the admitted lower quality of mixed AADC trays while not unduly 
penalizing other sort levels for these mixed level errors. Because 
mailers helped develop this weighting process, we are confident other 
mailers will agree to its fairness in operation. The Postal Service 
remains open to ideas for improving SAVE.
    The value of this policy proposal is that SAVE requires the postal 
clerk to be able to locate all of the mixed AADC trays presented in a 
mailing so that verification can be performed. If these trays are 
spread throughout the mailing as presented, verification of the mail 
might be slowed due to the need to search to retrieve them. We do agree 
with the comment that our proposal, as initially worded, might cause 
confusion about what the mailer is required to do. Accordingly, we 
reworded the requirement to make it clearer. The language in DMM 
M810.1.8 was clarified and appears in this notice. For the purposes of 
reading that language, a ``mailing'' is defined as those automation 
rate pieces that are represented by a single postage statement.

Standardized Documentation for Mailings With 10,000 or More Pieces

    One comment supports this change without reservation. Another 
believes the Postal Service is making it more difficult to present 
mail; that the old way of mailers segregating identical piece weight 
mail by rate category for weigh verifications should be continued.
    As a general matter, the Postal Service intends to eliminate weigh 
verification as a means of verifying piece counts, whenever possible. 
This process is time consuming. Piece counts can be confirmed with 
documentation. Since all large mailings are computer driven, the needed 
documentation is available.
    Standardization of documentation content and format will contribute 
to more consistent verification methods and results throughout the 
postal system. All mailers' computer files contain the necessary data 
already so that, in some cases, the mailer may simply need to reprogram 
the mail qualification report to meet DMM standardized formats. 
Accordingly, the Postal Service is adopting the requirement that 
mailers provide standardized documentation for automation letter 
mailings having 10,000 or more pieces.

Eliminating Precanceled Stamped Pieces

    The only comment on this portion of the proposal questioned its 
inclusion. This proposal was included because the Postal Service is 
striving to simplify mailing processes. Allowing precanceled stamp 
pieces that weigh more than 1 ounce in combined mailings adds 
complexity and makes verification extremely difficult. To make SAVE 
consistent universally, we believe it is important to eliminate this 
option. The crucial considerations in making this decision were that 
(1) business mailers have both metered and permit imprint options for 
this mail, and (2) few mailers are impacted because use of other than 1 
ounce precanceled stamps in combined mailings is extremely rare. The 
Postal Service plans to go forward with this change.

General Comment

    In conclusion, one comment suggested a six-month delay in 
implementing SAVE, so that more mailers can be educated. As it is, this 
final notice comes a full seven months after the initial notice. In 
lieu of delaying implementation, the Postal Service will further 
evaluate and promote awareness of SAVE by:
    (1) Addressing national mailer association conferences.
    (2) Providing its district offices with PowerPoint presentations to 
be used at local Postal Customer Council (PCC) meetings.
    (3) Offering presentations at the Nashville and Anaheim Postal 
Forums.
    (4) Making the SAVE procedures available to the mailing community 
via the Postal Service Web site. (MLOCR/barcode sorter procedures are 
available now; modifications for other automation letter and card 
mailers will be available in July 2000.)
    (5) Testing SAVE at several list mailer sites in June 2000.
This approach recognizes that the bulk of SAVE educational efforts will 
be borne by the Postal Service. The impact on mailers will be minimal. 
Mailers need only begin presenting mixed AADC trays together, and many 
already do this. Some mailers may need to reprogram mail qualification 
reports to conform to current DMM standardized formats, although all 
MLOCR/barcode sorter mailers and most list mailers already meet this 
standard because they use conforming software from equipment and 
software vendors.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C.553 (b),(c)) regarding proposed 
rulemaking by 39 U.S.C.410 (a), the Postal Service adopts the following 
revisions to the Domestic Mail Manual (DMM), incorporated by reference 
in the Code of Federal Regulations. See 39 CFR part 111.

[[Page 41879]]

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

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. Amend the following sections of the Domestic Mail Manual as set 
forth below:

M  Mail Preparation and Sortation

* * * * *
M800  All Automation Mail
M810  Letter-Size Mail
Mail 1.0  BASIC STANDARDS
* * * * *

1.3  Documentation

    [Amend 1.3 to read as follows:]
    A complete, signed postage statement, using the correct USPS form 
or an approved facsimile, must accompany each mailing and must be 
supported by documentation produced by PAVE-certified (or, except for 
Periodicals, MAC-certified) software or by standardized documentation 
under P012. Exception: For mailings of fewer than 10,000 pieces, 
presort and rate documentation is not required if postage at the 
correct rate is affixed to each piece or if each piece is of identical 
weight and the pieces are separated by rate when presented for 
acceptance. Mailers may use a single postage statement and a single 
documentation report for all rate levels in a single mailing. Standard 
Mail (A) mailers may use a single postage statement and a single 
documentation report for both an automation carrier route mailing and a 
mailing containing pieces prepared at 5-digit, 3-digit, and basic 
automation rates as applicable, submitted for entry at the same time. 
Documentation of postage is not required if the correct rate is affixed 
to each piece or if each piece is of identical weight and the pieces 
are separated by rate when presented for acceptance. Combined mailings 
of Periodicals publications also must also be documented under M200. 
First-Class and Standard Mail (A) mailings prepared under the value 
added refund procedures or as combined mailings of different postage 
payment methods or different rates of postage affixed must meet 
additional standardized documentation requirements under P014 and P760.
* * * * *

    [Add new 1.8 to read as follows:]

1.8  Presentation

    Upon presentation of letter-size automation rate First-Class Mail 
and Standard Mail (A) mailings to the Postal Service for verification, 
mailers must present all mixed AADC trays together, and such trays must 
either be adjacent to one another or side by side, and must be placed 
as the top layer(s) on any given container. Containerization 
instructions for First-Class Mail letters and cards may be established 
by local Postal Service managers.
* * * * *

P  Postage and Payment Methods

* * * * *
P700  Special Postage Payment Systems
* * * * *
P760  First-Class or Standard Mail (A) Mailings With Different Payment 
Methods
* * * * *
2.0  POSTAGE
* * * * *

2.3  Precanceled Pieces--First-Class Mail

    [Amend 2.3 by revising the first sentence to read as follows:]
    Pieces with precanceled stamps in a combined mailing must not weigh 
more than 1 ounce and must bear postage in any denomination of 
precanceled stamps permitted in a Presorted or automation rate mailing. 
Additional postage due for precanceled stamp pieces in a combined 
mailing is deducted from the mailer's postage due advance deposit 
account. Full postage at single-piece First-Class Mail rates must be 
paid on accompanying single-piece rate mail using one of the methods 
under P100. Additional preparation to verify postage due may be 
required by the Postal Service.
* * * * *
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 00-17094 Filed 7-6-00; 8:45 am]
BILLING CODE 7710-12-U