[Federal Register Volume 72, Number 69 (Wednesday, April 11, 2007)]
[Proposed Rules]
[Pages 18179-18190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-1796]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


New Standards for Periodicals Mailing Services

AGENCY: Postal Service.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule provides the revisions to Mailing Standards 
of the United States Postal Service, Domestic Mail Manual (DMM) that we 
propose to adopt in support of the new Periodicals pricing and price 
structure to be implemented on July 15, 2007.
    The new prices will enhance efficiency, offer more choices, and 
better ensure that all types of Periodicals mail cover their costs. 
Periodicals mailers will have new incentives to use efficient 
containers and bundles, and copalletization will become 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 April 25, 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, 202-268-7266; or Carrie 
Witt, 202-268-7279.

SUPPLEMENTARY INFORMATION: On May 14, 2007, the Postal Service will 
adopt new prices and mailing standards to support the majority of the 
Docket No. R2006-1 pricing change recommended by the Postal Regulatory 
Commission and accepted by the Governors of the United States Postal 
Service. The Postal Service Board of Governors is delaying the 
implementation of new Periodicals prices and mailing standards until 
July 15, 2007, to give postal employees and

[[Page 18180]]

mailers more time to prepare for the new pricing structure recommended 
by the Commission. This proposal provides the revisions to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM) that we propose to adopt in support of the Periodicals portion of 
the Docket No. R2006-1 pricing change.
    You can find this Periodicals proposal, as well as the rate case 
final rule for all other classes of mail, at www.usps.com/ratecase. We 
also provide rate charts and other helpful information for mailers, 
including frequently asked questions, press releases, and MailPro 
articles related to the pricing change.

Background

    In our request for a recommended decision filed with the Commission 
on May 3, 2006, we proposed Periodicals rates based on pieces, pounds, 
and a single container charge. The Commission recommended rates based 
on pieces and pounds but also on bundles, sacks, and pallets. Piece 
rates vary based on machinability, barcoding, and presort level. 
Bundle, sack, and pallet rates vary based on presort level and point of 
entry. The recommended rate structure is much more complex than the one 
we originally proposed. Ideally, by explicitly recognizing the cost 
differences between various bundles, containers, and entry points, many 
mailers will respond to these price signals, bring down costs, and 
improve the cost-coverage for all Periodicals mailers.
    For In-County Periodicals, the rate design is still based on pieces 
and pounds, as it is today. Since many publications use both Outside-
County and In-County rates, the Board set the same July 15 
implementation date for both subclasses, and for all Periodicals fees.

Overview of New Outside-County Periodicals Rate Design

    In general, mailers who sort their mail to the 5-digit and carrier 
route levels on destination-entered pallets will pay the lowest rates. 
Mailers should note that the piece, pound, bundle, and container rates 
are designed to work together to more accurately reflect handling and 
delivery costs. We suggest that mailers test different preparation 
scenarios to see the interplay between variables and how their own mail 
will be affected.

New Container Rate Structure

    The new rate structure adds container rates for Periodicals mail. 
We define a ``container'' as a tray, sack, pallet, or other equivalent 
USPS-approved container. Most of our standards for mail preparation are 
not changing as a result of the new rate structure. Mailers will still 
follow the mail preparation requirements in DMM 705, 707, and 708, 
which specify when to prepare mail in bundles and when to place it in 
trays, sacks, and pallets. We note that mailers must follow the 
preparation and entry requirements in the DMM. Mailers cannot choose to 
use certain containers (or to not use containers) to circumvent the 
rates.
    New Outside-County container rates are based on the type of 
container (tray, sack, or pallet), the level of sortation of the 
container, and where the container is entered. We will apply the 
container rates to pallets, sacks, and trays containing 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/
scheme containers). When trays and sacks are placed on pallets, we 
propose to charge for each tray and sack, but not for the pallets. This 
should encourage mailers to use pallets.
    Container rates decrease with deeper entry because there are fewer 
handlings needed. Our best rates are for mail that is finely sorted on 
pallets and entered close to its destination. For example, the price 
for a 5-digit pallet entered at the DDU is $1.20, compared to $15.50 if 
entered at the DADC.
    On the other hand, when entered at the same facility level, prices 
are higher for more-finely presorted containers than for those that are 
less-finely presorted. The difference reflects the additional handlings 
that the more-finely presorted container will get before it is opened. 
For instance, for origin entry, the price for a 5-digit pallet is 
$26.95, or $8.34 higher than the $18.61 price for an ADC pallet.
    Working in the opposite direction, a bundle in a less-finely 
presorted container requires more handlings prior to piece sortation 
than the same level bundle in a more-finely presorted container, and 
bundle prices reflect this. The price for a 5-digit bundle is $0.095 on 
an ADC pallet, but only $0.008 on a 5-digit pallet, a difference of 
$0.087.
    Therefore, as the container presort-level becomes finer, container 
prices increase but prices for bundles within the container decrease. 
The lower bundle postage will offset some, all, or more than all of the 
higher container postage.
    Taken as a whole, the inter-relationships among the per-container, 
per-bundle and per-piece prices in this rate structure provide further 
incentives for mailers to comail and copalletize.
    The rate structure also provides new rates for pallets and for 
sacks on pallets entered at the destination bulk mail center (DBMC) to 
ensure efficient handling and consistent service. These rates reflect 
the cost of cross-docking pallets and do not represent a new pallet or 
sack sortation level. Mailers can enter Periodicals mail at the DBMCs 
listed in DMM Exhibit 346.3.1, or at a USPS-designated facility. For 
DBMC entry, pieces must be prepared in bundles or in sacks on ADC, 3-
digit, or 5-digit pallets, and addressed for delivery to one of the 3-
digit ZIP Codes served by that BMC.

New Bundle Rate Structure

    We are adopting new rates for bundles of Periodicals mail, but we 
are not changing the definition of a bundle or the bundling 
requirements. A ``bundle'' is a group of addressed pieces secured 
together as a unit. Pieces are first sorted to destinations and then 
assembled into groups for bundling based on quantity and other factors. 
The term bundle does not apply to unsecured groups of pieces (for 
example, pieces prepared in letter or flat trays and identified by 
separator cards or tic marks). ``Firm bundles'' are also groups of 
pieces that are secured together, but in a firm bundle all pieces are 
for delivery to the address shown on the top piece.
    New Outside-County bundle rates are based on the level of sorting 
of both the bundle and the container (but not on the type of 
container). More finely presorted bundles within the same container 
level have higher rates to reflect more bundle handlings before they 
are opened. For example, for pieces sorted into a carrier route bundle, 
and then placed on an ADC pallet or sack, a mailer pays 10.4 cents per 
bundle. For pieces sorted into an ADC bundle and placed on an ADC 
pallet or sack, a mailer pays 3.8 cents per bundle. A lower piece rate 
for pieces in more finely presorted bundles offsets the higher bundle 
charge.
    We propose to apply the bundle rates to all bundles containing 
Outside-County mail, except for mixed bundles of In-County and Outside-
County pieces in carrier route and 5-digit/scheme bundles. This will 
avoid imposing the Outside-County pricing structure on bundles that 
will likely contain mostly In-County Periodicals.
    Firm bundles are subject to both a piece charge (16.9 cents) and a 
bundle charge (2.7 cents to 7.9 cents, depending on the container 
level). Because of this new rate structure, mailers may no longer use 
firm bundles to satisfy a six-piece bundle requirement to a presort 
level.

[[Page 18181]]

    We will charge bundle rates based on the actual number of bundles 
entered, so mailers must precisely document the number of bundles they 
produce. Unlike today, where there is no rate impact for a difference 
between the number of bundles implied by the presort requirements and 
the actual number of bundles created during production, under the new 
rates mailers must conscientiously modify software parameters and 
monitor adherence to physical breaks between bundles to ensure the 
number of bundles produced matches their documentation.

New Piece Rate Structure

    Periodicals Outside-County prices include new piece rates based on 
shape, machinability, barcoding, and presort level. The presort level 
of the piece is based primarily on the bundle level of the piece, with 
one exception: The presort level of pieces loose in trays is based on 
the container level.
    While the new structure eliminates the per-piece discounts for 
pieces on pallets, including the experimental copalletization 
discounts, the container and bundle charges are designed to encourage 
copalletization. The new structure also eliminates the per-piece 
discounts for destination area distribution center (DADC), destination 
sectional center facility (DSCF), and destination delivery unit (DDU) 
entry, but recognizes instead the associated cost savings in the new 
DADC, DSCF, and DDU rates for editorial pounds, as well as in the 
container rates.
    We divide the piece rates into ``letter'' rates, ``machinable 
flats'' rates, and ``nonmachinable flats and parcel'' rates, with the 
exception of carrier route rates, which we divide only according to 
saturation, high density, and basic rates.

Letters

    We provide letter rates for ``barcoded'' and ``nonbarcoded'' 
pieces. Periodicals letters must meet the standards for all letters in 
DMM 201. Letters mailed at the barcoded rates must include a barcode 
and must meet the additional standards for automation pieces in DMM 
201.3.0. Automation Periodicals letters meet these dimensions:
    <bullet> For height, no more than 6\1/8\ or less than 3\1/2\ inches 
high.
    <bullet> For length, no more than 11\1/2\ or less than 5 inches 
long.
    <bullet> For thickness, no more than 0.25 or less than:
    [cir] 0.007 inch thick if no more than 4\1/4\ inches high and 6 
inches long; or
    [cir] 0.009 inch thick if more than 4\1/4\ inches high or 6 inches 
long, or both.
    <bullet> The maximum weight for each piece is 3.5 ounces.
    Periodicals letters mailed at the nonbarcoded rates meet the letter 
standards in DMM 201 but do not include a barcode. We assigned the 
machinable--nonbarcoded flats rates to these pieces. Nonbarcoded 
Periodicals letters meet these dimensions:
    <bullet> For height, no more than 6\1/8\ or less than 3\1/2\ inches 
high.
    <bullet> For length, no more than 11\1/2\ or less than 5 inches 
long.
    <bullet> For thickness, no more than 0.25 or less than 0.007-inch 
thick.
    <bullet> The maximum weight for each piece is 3.5 ounces.

Flats

    We divide flats rates into categories for machinable and 
nonmachinable pieces, and then provide rates for barcoded and 
nonbarcoded pieces.
    For flats prepared in 3-digit, ADC, and mixed ADC bundles and 
containers, we define ``machinable--barcoded'' flats as barcoded pieces 
that we can process on our primary flats-sorting equipment, the 
automated flat sorting machine (AFSM 100). These pieces must meet our 
standards for minimum flexibility, maximum deflection, and uniform 
thickness, and use automation-compatible polywrap (if polywrapped). 
Machinable--barcoded Periodicals flats meet these dimensions:
    <bullet> Minimum height is 5 inches. Maximum height is 12 inches.
    <bullet> Minimum length is 6 inches. Maximum length is 15 inches.
    <bullet> For bound or folded pieces, the edge perpendicular to the 
bound or folded edge may not exceed 12 inches.
    <bullet> Minimum thickness is 0.009 inch. Maximum thickness is 0.75 
inch.
    <bullet> The maximum weight for each piece is 20 ounces.
    These pieces are defined in DMM 301.3.0 and match our standards for 
Standard Mail flat-size pieces mailed at automation rates, with a 
different weight limit.
    ``Machinable--nonbarcoded'' flats prepared in 3-digit, ADC, and 
mixed ADC bundles and containers meet the same dimensions noted above, 
but they do not include a barcode.
    For flats prepared in 3-digit, ADC, and mixed ADC bundles and 
containers, we define ``nonmachinable--barcoded'' flats as barcoded 
pieces that we can process on the upgraded flat sorting machine (UFSM 
1000) and potentially in the future flats sequencing environment; 
therefore, the requirements are slightly more restrictive than current 
UFSM 1000 requirements. These pieces must meet our standards for 
uniform thickness and use automation-compatible polywrap (if 
polywrapped), but they are not currently subject to our standards for 
minimum flexibility and maximum deflection. Nonmachinable--barcoded 
Periodicals flats meet these dimensions:
    <bullet> Minimum height is 5 inches. Maximum height is 12 inches.
    <bullet> Minimum length is 6 inches. Maximum length is 15 inches.
    <bullet> Minimum thickness is 0.009 inch. Maximum thickness is 1.25 
inches.
    <bullet> The maximum weight for each piece is 4.4 pounds.
    These pieces are defined in proposed DMM 707.26.0, and they are 
unique to Periodicals mail.
    For pieces prepared in 5-digit bundles and containers, we define 
``machinable--barcoded'' flats as those pieces prepared under 301.3.0 
that we can process on the AFSM 100, and those pieces prepared under 
707.26 that we can process on the UFSM 1000 and potentially on the 
future flats sequencing system. This definition will help us align 
Periodicals mail with the flats sequencing system, which will likely 
process a wider variety of flat-shaped mail than the AFSM 100 can 
process, and also recognizes that only some flats prepared in 5-digit 
bundles are sorted to carrier routes by the AFSM 100, while the rest 
are sorted manually. We are not proposing to change the standards for 
combining AFSM 100--compatible (defined in 301.3.0) and UFSM 1000--
compatible (defined in 707.26.0) pieces in the same bundle.
    ``Machinable--nonbarcoded'' flats prepared in 5-digit bundles and 
containers meet the same dimensions noted above, but they do not 
include a barcode. The rate design includes a price for ``nonmachinable 
`` barcoded--flats prepared in 5-digit bundles, but mailers will not 
use this rate because we allow these UFSM 1000-compatible barcoded 
pieces to pay the lower, machinable--barcoded rates at the 5-digit 
level.
    For all sort levels, we define ``nonmachinable--nonbarcoded'' flats 
as barcoded or nonbarcoded pieces that do not meet the standards in DMM 
301.3.0 or in proposed 707.26.0.

Parcels

    Periodicals parcels are pieces that cannot be processed on our 
primary flat-sorting equipment. This rate category includes rigid and 
parcel-like pieces, pieces in boxes, and tubes and rolls. Parcels 
exceed the weight or dimensions for machinable flats in DMM 707.26, but 
cannot weigh more than 70 pounds or measure more than 108 inches in 
length and girth combined (for parcels, length is the longest dimension 
and girth is the distance around the thickest part).

[[Page 18182]]

    Parcel rates are the ``nonmachinable flats and parcels--
nonbarcoded'' rates, whether or not the parcel includes a barcode.

New Pound Rate Structure

    For advertising pounds, the new price structure retains zoned rates 
and per-pound incentives for DADC, DSCF, and DDU entry. For editorial 
pounds, postage from any entry point upstream from the DADC will 
continue to be unzoned, but there are new per-pound incentives for 
DADC, DSCF, and DDU entry. There are no pound-rate incentives for DBMC 
entry.

Documentation

    We propose new documentation requirements in DMM 708.1.0, including 
a new bundle report, a new container report, and a new column on the 
USPS qualification report indicating which bundles and containers are 
subject to the Outside-County bundle and container rates. As we stated 
above, we will charge bundle rates based on the actual number of 
bundles entered, and the new documentation will help us verify that 
mailers have correctly prepared and paid for their mailings. We are not 
changing the documentation requirements for In-County mail.
    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:

200 Discount Letters and Cards

201 Physical Standards

* * * * *

3.0 Physical Standards for Automation Letters and Cards

* * * * *

3.5 Weight Standards for Periodicals Automation Letters

    Maximum weight limit for Periodicals automation letters (see 3.13.4 
for pieces heavier than 3 ounces) is 3.5 ounces (0. 2188 pound).
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

8.0 Preparation for Pallets

* * * * *

8.9 Bundles on Pallets

* * * * *

8.9.3 Periodicals

    Bundle size: Six-piece minimum (lower-volume bundles permitted 
under 707.22.0, Preparing Presorted Periodicals, and 707.23.0, 
Preparing Carrier Route Periodicals), 20-pound maximum, except:
    [Revise item a to remove the option to count firm bundles as one 
piece for presort standards as follows:]
    a. Firm bundles may contain as few as two copies of a publication. 
Mailers must not consolidate firm bundles with other bundles to the 
same 5-digit destination.
* * * * *

9.0 Preparing Cotrayed and Cosacked Bundles of Automation and Presorted 
Flats

* * * * *

9.2 Periodicals

* * * * *

9.2.5 Sack Preparation and Labeling

    Nonbarcoded rate and barcoded rate bundles prepared under 9.2.2, 
9.2.3, and 9.2.4 must be presorted together into sacks (cosacked) in 
the sequence listed below. Sacks must be labeled using the following 
information for Lines 1 and 2 and 707.21.0 for other sack label 
criteria. If, due to the physical size of the mailpieces, the barcoded 
rate pieces are considered flat-size under 301.3.0 and the nonbarcoded 
rate pieces are considered parcels under 401.1.6, the processing 
category shown on the sack label must show ``FLTS.''
    [Revise item a to require scheme sorting as follows:]
    a. 5-digit/scheme, required; scheme sort required only for pieces 
meeting the 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.''
* * * * *

10.0 Preparation for Merged Containerization of Bundles of Flats Using 
City State Product

10.1 Periodicals

10.1.1 Basic Standards

    Carrier route bundles in a carrier route rate mailing may be placed 
in the same sack or on the same pallet as 5-digit bundles from a 
barcoded rate mailing and 5-digit bundles from a nonbarcoded rate 
mailing (including pieces cobundled under 11.0) under the following 
conditions:
* * * * *
    [Revise item j to remove the option to count firm bundles toward 
the six-piece minimum for rate eligibility as follows:]
    j. For mailings prepared in sacks, mailers may not combine firm 
bundles and 5-digit scheme bundles in 5-digit scheme (L007) bundles. 
Mailers may combine firm bundles with 5-digit scheme, 3-digit scheme, 
and other presort destination bundles in carrier route, 5-digit, 3-
digit, SCF, ADC, and mixed ADC sacks.
* * * * *

11.0 Preparing Cobundled Barcoded Rate and Nonbarcoded Rate Flats

* * * * *

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) barcoded rate and 
nonbarcoded rate flat-size pieces as an option to the basic bundling 
requirements in 707.22.0 and 707.25.0. 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:
* * * * *
    [Revise item g as follows:]
    g. Within a bundle, all pieces must meet the requirements in 
301.3.0 or all

[[Page 18183]]

pieces must meet the requirements in 707.26.0.
* * * * *

11.2.2 Bundle Preparation

    [Revise the introductory text in 11.2.2 to specify that pieces 
meeting the criteria in 301.3.0 must be scheme-sorted 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; * * *
* * * * *

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 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.
* * * * *

16.0 Express Mail Open and Distribute and Priority Mail Open and 
Distribute

    [Revise heading of 16.1 as follows:]

16.1 Description

* * * * *

16.1.4 Basis of Rate

    [Revise 16.1.4 to specify that container rates do not apply to 
Express Mail and Priority Mail Open and Distribute sacks as follows:]
    Mailers must pay Express Mail and Priority Mail postage based on 
the weight of the entire contents of the Express Mail or Priority Mail 
shipment. Do not include the tare weight of the external container. Do 
not apply Priority Mail dimensional weight pricing or Periodicals 
container rates to the external container.
* * * * *

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 1.1.5 through 1.1.7. Insert 
new 1.1.3 and 1.1.4 as follows:]

1.1.3 Outside-County Bundle Rates

    Rate for each bundle containing Outside-County Periodicals mail 
(see 2.1.7 for how to apply these rates):
    [We provide all of the new rates for Periodicals mail at the end of 
this proposal.]

1.1.4 Outside-County Container Rates

    Rate for each pallet, sack, tray, or other USPS-approved container 
containing Outside-County Periodicals mail (see 2.1.8 for how to apply 
these rates):
    [We provide all of the new rates for Periodicals mail at the end of 
this proposal.]
* * * * *

1.2 Outside-County--Science-of-Agriculture

* * * * *
    [Renumber 1.2.3 as new 1.2.5. Insert new 1.2.3 and 1.2.4 as 
follows:]

1.2.3 Outside-County Bundle Rates

    Rate for each bundle containing Outside-County Periodicals mail 
(see 2.1.7 for how to apply these rates):
    [We provide all of the new rates for Periodicals mail at the end of 
this proposal.]

1.2.4 Outside-County Container Rates

    Rate for each pallet, sack, tray, or other USPS-approved container 
containing Outside-County Periodicals mail (see 2.1.8 for how to apply 
these rates):
    [We provide all of the new rates for Periodicals mail at the end of 
this proposal.]
* * * * *

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 bundle and 
container rates and the new nonadvertising pound rate structure as 
follows:]
    Postage for Periodicals mail includes a pound rate charge, a piece 
rate charge, bundle and container rate charges for Outside-County mail, 
and any discounts for which the mail qualifies under the corresponding 
standards.
    [Renumber 2.1.2 through 2.1.5 as 2.1.3 through 2.1.6. Add new 2.1.2 
to reflect the new piece rate structure as follows:]

2.1.2 Applying Piece Rate

    Apply piece rates based on the following criteria:
    a. The shape of the mailpiece (letter, flat, or parcel).
    b. The characteristics of the mailpiece (machinable or 
nonmachinable). See 18.4ac and 18.4ad.
    c. The use of a barcode.
    d. The bundle level.

2.1.3 Applying Pound Rate

    [Revise renumbered 2.1.3 to reflect the new nonadvertising rate 
structure and to clarify item b as follows:]
    Apply pound rates to the weight of the pieces in the mailing as 
follows:
    a. Outside-County and Science-of-Agriculture 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 or a single rate to all other zones.
    b. In-County pound rates consist of a DDU entry rate and an unzoned 
rate for eligible copies delivered within the county of publication.
    [Revise the heading of renumbered 2.1.4 as follows:]

2.1.4 Computing Weight of Advertising and Nonadvertising Portions

    [Revise renumbered 2.1.4 to reflect 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 destination entry 
and zone, plus the sum of the charges for the computed weight of the 
nonadvertising portion of copies to each destination entry and all 
other zones. 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

[[Page 18184]]

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.
* * * * *
    [Insert new 2.1.7 and 2.1.8 as follows:]

2.1.7 Applying Bundle Rates

    For mailings prepared in bundles, mailers pay the bundle rate 
according to the presort level of the bundle and the presort level of 
the container that the bundle is placed in or on. The bundle rates are 
in addition to the container rates in 2.1.8. The following standards 
apply:
    a. Bundles of fewer than six pieces under 25.1.5 (including single-
piece bundles) must each pay the applicable bundle charge.
    b. For bundles containing both In-County and Outside-County pieces, 
mailers do not pay the bundle rate for carrier route and 5-digit/scheme 
bundles.

2.1.8 Applying Container Rates

    For mailings prepared in trays, sacks, pallets, and other USPS-
approved containers, mailers pay the container rate according to the 
type of container, the presort level of the container, and where the 
mail is entered. The container rates are in addition to the bundle 
rates in 2.1.7. The following standards apply:
    a. For mailings prepared in trays or sacks, mailers pay the 
container rate for each tray or sack based on container level and 
entry.
    b. For mailings prepared on pallets under 705.8.0:
    1. For bundles on pallets, mailers pay the container rate for each 
pallet.
    2. For trays or sacks on pallets, mailers pay the container rate 
for each tray or sack, and not for the pallets. The container rate for 
each tray or sack is based on the container level and entry.
    c. For containers with 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.

2.2 Computing Postage

* * * * *
    [Renumber 2.2.7 as 2.2.8. Insert new 2.2.7 to compute the Outside-
County bundle and container rates as follows:]

2.2.7 Outside-County Bundle and Container Charges

    The Outside-County bundle charge is the sum of the number of 
bundles for each bundle level and container level in the mailing 
subject to the Outside-County bundle rates (see 1.1.3 and 1.2.3), 
multiplied by the applicable bundle rates. The Outside-County container 
charge is the sum of the number of containers for each container type, 
container level, and entry level in the mailing subject to the Outside-
County container rates (see 1.1.4 and 1.2.4), multiplied by the 
applicable container rates. Mailers who prepare Periodicals 
publications as a combined mailing by merging copies or bundles of 
copies under 27.0 may pay the Outside-County bundle and container 
charges in one of the following ways:
    a. On one publisher's Form 3541.
    b. On one consolidated Form 3541. Under this option, the 
consolidator must complete the appropriate sections of the form and pay 
the charges from the consolidator's own advance deposit account.
    c. Apportioned on each publisher's Form 3541. The following 
standards apply:
    1. The qualification report must be submitted electronically via 
Mail.dat. See 708.1.0 for additional documentation requirements.
    2. The total charges on all Form 3541s in a combined mailing must 
equal the total charges for all bundles and containers subject to the 
Outside-County container rates presented for mailing.
    3. Apportion the bundle charge for each title or edition by 
determining how many of each type of bundle that title or edition is 
in. Next calculate the percentage of copies in each of those bundles 
and convert to four decimal places, rounding if necessary (for example, 
convert 20.221% to .2022). Add the decimal values for each type of 
bundle in the mailing and multiply the total by the applicable bundle 
rate in 1.1.3 and 1.2.3. Add the bundle charges to determine the total 
for each title or edition.
    4. Apportion the container charge for each title or edition by 
determining how many of each type of container that title or edition is 
in. Next calculate the percentage of copies in each of those containers 
and convert to four decimal places, rounding if necessary (for example, 
convert 20.221% to .2022). Add the decimal values for each type of 
container in the mailing and multiply the total by the applicable 
container rate in 1.1.4 and 1.2.4. Add the container charges to 
determine the total for each title or edition.

2.2.8 Total Postage

    [Revise renumbered 2.2.8 to reflect the new Outside-County 
container rates as follows:]
    Total Outside-County postage is the sum of the per pound and per 
piece charges, the bundle charges, the container charges, and any Ride-
Along and Repositionable Notes charges; minus all discounts; 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 and 
Repositionable Notes charges, less all discounts, rounded off to the 
nearest whole cent.

3.0 Physical Characteristics and Content Eligibility

* * * * *

3.5 Mailpiece Construction

* * * * *

3.5.2 Size and Weight

    [Revise 3.5.2 as follows:]
    Periodicals mail may not weigh more than 70 pounds or measure more 
than 108 inches in length and girth combined. Additional size and 
weight limits apply to letters and machinable and nonmachinable pieces. 
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 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, a barcoded 
letter-size host piece can no longer be processed as a barcoded letter, 
then that piece must pay the Periodicals nonbarcoded letter rate for 
the host piece plus the Ride-Along rate or the Standard Mail rate for 
the attachment or enclosure.
* * * * *

[[Page 18185]]

16.0 Postage Payment

* * * * *

16.4 Payment Method

    [Revise 16.4 to clarify payment options in a combined mailing as 
follows:]
    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 27.0 
may pay the Outside-County bundle and container charges on one mailer's 
Form 3541, on one consolidated Form 3541, or on each mailer's Form 3541 
(see 2.2.7).
* * * * *

17.0 Documentation

* * * * *

17.7 Additional Standards

* * * * *
    [Insert new 17.7.4 as follows:]

17.7.4 Outside-County Bundle and 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 bundles are used and how many trays, 
sacks, and pallets are required for the rates and discounts claimed.

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 for scheme sorting 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 item b to require trays to be at least 85% full 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 items i and r for scheme sorting as follows:]
    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. Mailers must presort according to 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 combined within 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, mailers must presort according to 
L008. Pieces prepared in scheme bundles must meet the automation flat 
criteria in 301.3.0. Mailers must label mailpieces using an OEL under 
708.7.0. Periodicals firm bundles must not be combined within 3-digit 
scheme bundles.
* * * * *
    [Insert new items ac and ad to define ``machinability'' as 
follows:]
    ac. Machinable flats are:
    1. Flat-size pieces meeting the standards in 301.3.0 that are 
sorted into 5-digit, 3-digit, ADC, and mixed ADC bundles. These pieces 
are compatible with processing on the AFSM 100, or
    2. Flat-size pieces meeting the standards in 26.0 that are sorted 
into 5-digit bundles.
    ad. Nonmachinable flats are flat-size pieces meeting the standards 
in 26.0, with the exception of 5-digit pieces under 18.4ac (item 2) 
above. Nonmachinable flats are not compatible with processing on the 
AFSM 100.
* * * * *

22.0 Preparing Nonbarcoded Periodicals

* * * * *

22.2 Bundle Preparation

    [Revise the introductory text of 22.2 to specify that pieces must 
meet the criteria in 301.3.0 for scheme sorting as follows:]
    Mailings consisting entirely of nonbarcoded 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. A bundle must be prepared 
when the quantity of addressed pieces for a required presort level 
reaches the minimum bundle size (except under 22.7). Smaller volumes 
are not permitted except in 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; 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; OEL.
* * * * *
    [Revise 22.3 to remove the option to count firm bundles toward the 
six-piece bundle requirement for a presort destination as follows:]

22.3 Firm Bundles

    A ``firm bundle'' is defined as two or more copies for the same 
address placed in one bundle. If each copy has a delivery address, each 
may be claimed as a separate piece for presort and on the postage 
statement, or the firm bundle may be claimed as one addressed piece. A 
firm bundle claimed as one addressed piece must be physically separate 
from other bundles and may not be used to satisfy a six-piece bundle 
requirement to a presort destination.
* * * * *

22.6 Sack Preparation--Flat-Size Pieces and Parcels

    For mailing jobs that also contain a barcoded rate mailing under 
301.3.0, see 22.1.2 and 705.9.0 or 705.10.0. For mailing jobs that do 
not contain barcoded rate pieces, preparation sequence, sack size, and 
labeling:
    [Renumber items a through g as new items b through h. Insert new 
item a for scheme sorting as follows:]

[[Page 18186]]

    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 Nonbarcoded Pieces

    [Revise the introductory text in 22.7 to specify that pieces must 
meet the criteria in 301.3.0 and to add the container charge for trays 
as follows:]
    As an option, mailers may place in flat-size trays the pieces 
prepared under 301.3.0 that would normally be placed in ADC, origin 
mixed ADC, or mixed ADC sacks. The trays are subject to the container 
charge in 1.1.4 or 1.2.4. Pieces must not be secured in bundles and are 
not subject to a bundle charge. Mailers must group together pieces for 
each 5-digit scheme, 5-digit, 3-digit scheme, 3-digit, and ADC 
destination as follows:
* * * * *

23.0 Preparing Carrier Route Periodicals

* * * * *

23.4 Preparation--Flat-Size Pieces and Irregular Parcels

* * * * *

23.4.2 Exception to Sacking

    [Revise the introductory text in 23.4.2 to specify that mailers do 
not pay the container charge as follows:]
    Sacking is not required for bundles prepared for and entered at a 
DDU when the mailer unloads bundles under 29.4.6. Mail presented under 
this exception is not subject to the container charge. Mailers must 
prepare unsacked bundles as follows:
* * * * *

25.0 Preparing Flat-Size Periodicals With Barcodes

25.1 Basic Standards

25.1.1 General

    [Revise 25.1.1 to reference 301.3.0 as follows:]
    Each piece must meet the physical standards in 301.3.0 or in 26.0. 
Bundle, sack, and tray preparation are subject to 18.0 through 21.0 and 
this section. Trays and sacks must bear the appropriate barcoded 
container labels under 708.6.0.
* * * * *

25.1.5 Bundle Preparation

    [Revise 25.1.5 for clarity and to update the cross-references as 
follows:]
    All pieces must be prepared in bundles (except under 25.6) and meet 
the following requirements:
    a. Pieces that meet the standards in 301.3.0 must be prepared in 
separate bundles from pieces that meet the standards in 26.0.
* * * * *
    c. Each bundle of pieces prepared under 301.3.0 and each bundle of 
pieces prepared under 26.0 must separately meet the bundle minimums in 
25.4.
    d. Bundles may contain fewer than six pieces when the mailpieces 
are too thick or too heavy to create a six-piece bundle. Piece 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 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.

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 26.0 in the same sack, with the 
exception of 5-digit scheme sacks, which may contain only pieces 
prepared under 301.3.0.

25.1.8 Exception--Barcoded and Nonbarcoded Flats on Pallets

    [Revise 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 a 
machinable barcoded flat-size piece, the entire job may be prepared, 
merged, and palletized under 705.9.0 through 705.13.0. The following 
standards apply:
    a. The nonbarcoded portion is paid at the nonbarcoded rates.
    b. Mailing jobs prepared entirely in sacks and claiming this 
exception must be cobundled under 705.11.0.
    c. As an alternative to 705.9.0 through 705.13.0, if a portion of 
the job is prepared as palletized barcoded flats, the nonbarcoded 
portion may be prepared as palletized flats and paid at nonbarcoded 
machinable and carrier route rates. The nonbarcoded rate pieces that 
cannot be placed on ADC or finer pallets may be prepared as flats in 
sacks and paid at the nonbarcoded rates.
* * * * *
    [Renumber 25.2 through 25.4 as new 25.3 through 25.5. Insert new 
25.2 as follows:]

25.2 Physical Standards

    Each flat-size piece must be rectangular and must meet the 
standards in 301.3.0 or, for 5-digit pieces, in 26.0.

25.3 Bundling and Labeling

    Preparation sequence, bundle size, and labeling:
    [Revise items a and c to require scheme bundling as follows:]
    a. 5-digit scheme (required); six-piece minimum (fewer pieces 
permitted under 25.1.9); OEL required.
* * * * *
    c. 3-digit scheme (required); six-piece minimum (fewer pieces 
permitted under 25.1.9); OEL required.
* * * * *

25.4 Sacking and Labeling

    For mailing jobs that also contain a nonbarcoded rate mailing, see 
25.1.10 and 705.9.0. Other mailing jobs are prepared, sacked, and 
labeled as follows:
    [Revise item a as follows:]
    a. 5-digit scheme, 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 to specify that 
pieces must meet the criteria in 301.3.0 and to add the container 
charge for trays as follows:]
    As an option, mailers may place in trays pieces prepared under 
301.3.0 that would normally be placed in ADC, origin mixed ADC, or 
mixed ADC sacks. The trays are subject to the container charge in 1.1.4 
or 1.2.4. 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:
* * * * *
    [Renumber 26.0 through 29.0 as 27.0 through 30.0. Insert new 26.0 
as follows:]

26.0 Alternative Physical Criteria for Flat-Size Periodicals

26.1 General

    Mailers may prepare barcoded flat-size pieces according to 25.0 
above. These pieces may not be combined in the same bundle with pieces 
prepared under 301.3.0. Determine length and height according to 
301.1.2.

[[Page 18187]]

26.2 Weight and Size

    The maximum weight for each piece is 4.4 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.

26.3 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.

26.4 Flexibility and Deflection

    Pieces prepared under 26.0 are not subject to the minimum standards 
for flexibility in 301.1.4 or the maximum standards for deflection in 
301.3.2.4.

26.5 Additional Criteria

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

27.0 Combining Multiple Editions or Publications

    [Reorganize and revise renumbered 27.0 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 as follows:]

27.1 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 total Outside-County postage. 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 finer presort levels.
    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 addressee 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.

27.2 Authorization

27.2.1 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 27.1a and 27.1c 
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.

27.2.2 Denial

    If the application is denied, the mailer or consolidator may 
reapply at a later date, or submit additional information needed to 
support the request.

27.2.3 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.

27.3 Minimum Volume

    The following minimum volume standards apply:
    a. For combined mailings prepared under 27.1a, 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 27.1b, the minimum volume 
requirements in 201.3.0 (for letters) or in 22.0, 23.0, or 25.0 apply 
for the rate claimed.
    c. For copalletized mailings prepared under 27.1c, the minimum 
volume requirements for pallets in 705.8.5.3 apply for the rate 
claimed.

27.4 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.''

27.5 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 ADC/mixed ADC 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.

27.6 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 27.1a, mailers must 
prepare a separate postage statement that claims all applicable per 
piece, per pound charges, and bundle and container charges (if 
apportioned) for each publication or edition. The mailer must annotate 
on, or attach to, each postage statement, the title and issue date of 
each publication or edition and indicate

[[Page 18188]]

that the pieces were prepared as part of a combined mailing under 
27.1a.
    c. For mailings under 27.1b, 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 
27.2.5a. 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 27.1b. 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 27.1c, mailers must prepare a 
separate postage statement for each publication in the mailing. One 
consolidated postage statement and a register of mailings for each 
publication must accompany mailings consisting of different editions or 
versions of the same publication.

27.7 Postage Payment

    Each mailing must meet the postage payment standards in 16.0. For 
copalletized mailings under 27.1c, 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).

27.8 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 27.1c, mailers must enter 
each mailing at the post office serving the facility where 
consolidation takes place.
* * * * *

29.0 Destination Entry Rate Eligibility

29.1 Basic Standards

29.1.1 Rate Application

    [Revise renumbered 29.1.1 to eliminate the pallet discounts and add 
the new container and bundle rates as follows:]
    Outside-County addressed pieces may qualify for destination bulk 
mail center (DBMC), destination area distribution center (DADC), or 
destination sectional center facility (DSCF) rates under 29.2 or 29.3. 
Carrier route rate addressed pieces may qualify for destination 
delivery unit (DDU) rates under 29.5. Outside-County pieces are subject 
to the Outside-County bundle rates in 1.1.3 or 1.2.3 and the Outside-
County container rates in 1.1.4 or 1.2.4. For all destination entry 
rate pieces:
    a. An individual bundle, tray, sack, or pallet may contain pieces 
claimed at different destination entry pound rates.
    b. In-County carrier route rate addressed pieces may qualify for 
the DDU discount under 29.5.
    c. 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.
* * * * *
    [Further renumber 29.2 through 29.4 as 29.3 through 29.5. Insert 
new 29.2 as follows:]

29.2 Destination Bulk Mail Center

29.2.1 Definition

    For this standard, destination bulk mail center (DBMC) includes the 
facilities in Exhibit 346.3.1, or a USPS-designated facility.

29.2.2 Eligibility

    Addressed pieces may be entered at DBMCs as follows:
    a. Pieces must be prepared in bundles on pallets or in sacks or 
trays on pallets (except mixed ADC pallets) under 705.8.0.
    b. Pieces must be addressed for delivery to one of the 3-digit ZIP 
Codes served by the BMC facility where deposited.
* * * * *

29.3 Destination Area Distribution Center

* * * * *

29.3.3 Rates

    [Revise renumbered 29.3.3 to reflect the new nonadvertising rate 
structure as follows:]
    DADC rates include a nonadvertising pound rate and, if applicable, 
an advertising pound rate.

29.4 Destination Sectional Center Facility

* * * * *

29.4.3 Rates

    [Revise renumbered 29.4.3 to reflect the new nonadvertising rate 
structure as follows:]
    DSCF rates include a nonadvertising pound rate and, if applicable, 
an advertising pound rate.

29.5 Destination Delivery Unit

* * * * *

29.5.3 Rates

    [Revise renumbered 29.5.3 to reflect the new nonadvertising rate 
structure as follows:]
    DDU rates for Outside-County include a nonadvertising pound rate 
and, if applicable, an advertising pound rate. DDU rates for In-County 
consist of a pound charge and a per piece discount off the addressed 
piece rate.
* * * * *

30.0 Additional Entry

* * * * *

30.2 Authorization

30.2.1 Filing

    [Add new last sentence to renumbered 30.2.1 as follows:]
    The publisher is responsible for timely filing of all forms and 
supporting documentation to establish, modify, or cancel an additional 
entry. Under the standards for combining mailings on pallets in 27.0, 
consolidators may apply for additional entry authorizations, on behalf 
of publishers, at the post office serving the consolidator's facility.
* * * * *

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:
* * * * *
    [Delete item c8, renumber item c9 as new item c8, and add new item 
c9 as follows:]
    9. For Periodicals mailings that contain both In-County and 
Outside-

[[Page 18189]]

County pieces, include a separate ``Container Charge'' and ``Bundle 
Charge'' column. The body of the listing must indicate which trays, 
sacks and bundles are subject to the container or bundle charges and a 
running total.
    d. For bundles on pallets, the body of the listing reporting these 
required elements:
* * * * *
    [Renumber item d7 as item d8. Add new item d7 as follows:]
    7. For Periodicals mailings that contain both In-County and 
Outside-County pieces, include a separate ``Container Charge'' and 
``Bundle Charge'' column. The body of the listing must indicate which 
pallets and bundles are subject to the container or bundle charges 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 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 bundle in the 
mailing and the total bundle charge paid. Report only bundles subject 
to the Outside-County bundle rate under 1.1.3 or 1.2.3.
    2. 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 rates under 1.1.4 
or 1.2.4.
    3. For combined mailings, a summary by individual mailer of the 
number of each type of bundle and container in the mailing and the 
bundle and container rate paid. Report only bundles, trays, sacks, and 
pallets subject to the Outside-County bundle and container rates under 
1.1.3 or 1.2.3 and 1.1.4 or 1.2.4.
    4. 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.
    5. 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.
* * * * *
    [Insert new 1.8 as follows:]

1.8 Bundle and Container Reports for Periodicals Mail

    A publisher must present documentation to support the actual number 
of bundles and containers of each edition of an issue as explained in 
1.8.1 and 1.8.2 below.

1.8.1 Bundle Report

    The bundle report must contain, at a minimum, the following 
elements:
    a. Container identification number.
    b. Container type.
    c. Container presort level.
    d. Bundle ZIP Code.
    e. Bundle level.
    f. Rate category.
    g. Number of copies by version in the bundle.
    h. An indicator showing which bundles are subject to the bundle 
charge.

1.8.2 Container Report

    The container report must contain, at a minimum, the following 
elements:
    a. Container identification number.
    b. Container type.
    c. Container level.
    d. Container entry level (origin, DDU, DSCF, DADC, or DBMC).
    e. An indicator showing which containers are subject to the 
container charge.
* * * * *

709 Experimental Classifications and Rates

    [Delete 3.0, Outside-County Periodicals Copalletization Drop-Ship 
Classification; and 4.0, Outside-County Periodicals Copalletization 
Drop-Ship Discounts for High-Editorial, Heavy-Weight, Small-Circulation 
Publications. Renumber remaining sections 5.0 and 6.0 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.]
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
BILLING CODE 7710-12-P

[[Page 18190]]

[GRAPHIC] [TIFF OMITTED] TP11AP07.002

[FR Doc. 07-1796 Filed 4-10-07; 8:45 am]
BILLING CODE 7710-12-C?>