[Federal Register Volume 72, Number 99 (Wednesday, May 23, 2007)]
[Proposed Rules]
[Pages 28908-28911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-9881]


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POSTAL SERVICE

39 CFR Part 111


New Address Quality Standards for First-Class Mail and Standard 
Mail

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule provides revisions to Mailing Standards of 
the United States Postal Service, Domestic Mail Manual (DMM) that we 
will adopt no earlier than 18 months from the publication date of this 
notice. Move Update, the process for updating names and addresses, is 
currently required for mailers to obtain discounted rates for First-
Class Mail. All address records used on pieces in discounted-rate 
mailings of First-Class Mail must be matched with customer-filed 
change-of-address orders received and maintained by the USPS using a 
USPS-approved method within 185 days of the date of mailing.
    Our proposal includes the following changes related to move update 
processing: (1) Extending the Move Update requirement to all Standard 
Mail and (2) reducing the window for move update processing of names 
and addresses used for mailings of discounted First-Class Mail from 185 
days to 95 days prior to mailing. The revised timeframe would apply to 
all pieces in Standard Mail mailings.

DATES: We must receive your comments on or before June 22, 2007.

ADDRESSES: Mail or deliver written comments to the Office of Product 
Management--Addressing, National Customer Support Center, United States 
Postal Service, 6060 Primacy Parkway, Ste. 201, Memphis, TN 38188-0001. 
You may inspect and photocopy all written comments at USPS Headquarters 
Library, 475 L'Enfant Plaza, SW., 11th Floor N, Washington, DC 20260-
1450 between 9 a.m. and 4 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Charles B. Hunt, 901-681-4651; or Bert 
Olsen, 202-268-7276.

SUPPLEMENTARY INFORMATION: The decisions mailers make about address 
quality directly affect their ability to reach valued customers. Over 
the years, the Postal Service has invested heavily to create an 
automated mailstream to

[[Page 28909]]

help drive costs out of the delivery system. An efficient automated 
mailstream depends on accurate barcodes for success; but barcodes are 
only as accurate as the quality of the addressing information that is 
their foundation.
    The Postal Service is committed to working with the mailing 
industry to maintain a cost-efficient mailstream that provides timely 
delivery of the mail and ensures customer value. We work with customers 
to make sure databases are updated frequently and accurately to improve 
the overall accuracy of address information. If either the recipient 
has moved or the address is incorrect or missing an important 
addressing element then the mailpiece could become undeliverable-as-
addressed (UAA) mail--an unnecessary expense of time, effort, and money 
for both mailers and the Postal Service.
    Move Update is one of a number of ways to help mailers reach their 
customers in an efficient and cost-effective way. Approximately 44 
million Americans change their addresses each year. Mailers who want to 
keep in touch with their customers and reach new customers have to make 
sure their mail is delivered. It's good business to update address 
lists frequently.
    The changes we are proposing to the Move Update standards are 
needed to improve the level of address quality for mailings entered at 
discounted First-Class Mail and Standard Mail rates and will result in 
higher-quality addressing on mailpieces and in timely delivery to 
intended recipients.
    We will provide a minimum 18-month implementation phase from the 
date of this notice to allow mailers of discounted First-Class Mail and 
Standard Mail sufficient time to make modifications necessary to comply 
with the proposed Move Update standards.
    Part A of this notice summarizes our proposal. Part B provides our 
proposed revisions to DMM standards.

Part A

(1) Extend Move Update Requirement to Standard Mail

    We propose extending the Move Update standard, which currently 
applies only to discounted rate First-Class Mail, to Standard Mail. A 
key reason is that one of the conclusions of a independent study we 
commissioned in 2004 of the cost, volume, and characteristics of poorly 
addressed mail--what we call ``Undeliverable-as-Addressed'' mail or 
``UAA'' mail--pointed out that mail entered as Standard Mail accounted 
for 62.8 percent of all UAA mail volume. Furthermore, the percent of 
Standard Mail that was UAA was higher than the percent for any other 
class of mail (Standard Mail was 6.4 percent, First-Class Mail was 3.4 
percent, Periodicals was 2.2 percent, and Package Services was 3.0 
percent).
    The majority of UAA Standard Mail is disposed of as waste--only a 
small percent of mail is endorsed for forwarding or return. In fact, in 
2004, we disposed of approximately 6 billion Standard Mail mailpieces 
at a cost of almost $248 million.
    The cost of UAA Standard Mail is even greater to our customers, who 
must consider the wasted cost of producing those mailpieces destined 
for disposal. Furthermore, customers are impacted by the lost 
opportunities that UAA mail causes. When a Standard Mail mailpiece is 
discarded, the mailer's opportunity to connect with a potential 
customer is lost. This is where the greatest impact is felt from poor 
address quality.
    Given the significant cost impact of UAA Standard Mail to both the 
Postal Service and customers, we believe it is reasonable to implement 
the Move Update requirement for those using the discounted Standard 
Mail rates.
Authorized Methods
    The following are authorized methods to meet the Move Update 
standard for Standard Mail:
    <bullet> NCOA<SUP>Link</SUP><SUP>TM</SUP> processing.
    <bullet> FASTforward<SUP>TM</SUP> MLOCR processing (letter mail 
only).
    <bullet> Address Change Service (ACS), including the new 
OneCode<SUP>ACS</SUP><SUP>TM</SUP>.
    <bullet> Ancillary service endorsements under DMM 507.1.5, except 
``Forwarding Service Requested.''

(2) Increase Frequency of Use of Move Update Processing

    Currently the DMM requires that addresses on all discounted-rate 
First-Class Mail be updated within 185 days before the mailing date 
using a USPS-approved method. We propose that this 185-day window be 
reduced to 95 days and linked to the previous proposal of expanding the 
Move Update requirement to Standard Mail.
    Approximately 14 percent of all Americans move every year. In 2006, 
families and individuals filed over 41 million change-of-address 
orders. In that same year, there were 2.3 million business filings. 
With such a dynamic environment, managing addresses affected by 
customer moves is challenging. On average, the monthly rate of 
deterioration of address currency, due to family and individual moves 
alone, is approximately 1.2 percent. In 6 months (the current Move 
Update requirement for discounted First-Class Mail), about 7.2 percent 
of addresses in your files have the potential to be inaccurate. To 
minimize this natural deterioration, we are proposing that Move Update 
processing be completed closer to the mailing date. By reducing the 
processing window from 185 days to 95 days prior to the mailing date, 
the natural deterioration of address currency can be expected to 
significantly decrease UAA volume and the costs associated with the 
redirection and rehandling (including disposal) of mail.

Part B

    Although we are 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), we invite comments on the 
following proposed revisions to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR 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 Mail Letters and Cards

* * * * *

230 First-Class Mail

233 Rates and Eligibility

* * * * *

3.0 Basic Standards for First-Class Mail Letters

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.5.2.
* * * * *
    [Revise item c as follows:]

[[Page 28910]]

    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.5.2, and the same address is used in a First-Class Mail 
mailing within 95 days after the address has been updated.
* * * * *

240 Standard Mail

243 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Letters

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records with customer-filed 
change-of-address orders received and maintained by the USPS. For the 
purposes of this standard, ``address'' means a specific address 
associated with a specific occupant name. Addresses subject to the Move 
Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.9.2, and the same address is used in a Standard Mail 
mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOALink).
    c. FASTforward MLOCR processes if used each time before mail entry 
(for letter mail only). If a mailpiece that initially uses FASTforward 
MLOCR processing is rejected and then entered into a Direct View 
Encoding Desk (DVED) operation (or similar system), the piece does not 
meet the Move Update standard. The name and address information on the 
piece must then be processed through a FASTforward RVE system to meet 
the Move Update standard. FASTforward RVE processes also meet the Move 
Update standard if used each time before mail entry.
    d. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *

300 Discount Mail Flats

* * * * *

330 First-Class Mail

333 Rates and Eligibility

* * * * *

3.0 Eligibility Standards for First-Class Mail Flats

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.5.2.
* * * * *
    [Revise item c as follows:]
    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.5.2, and the same address is used in a First-Class Mail 
mailing within 95 days after the address has been updated.
* * * * *

340 Standard Mail

343 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Flats

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records with customer-filed 
change-of-address orders received and maintained by the USPS. For the 
purposes of this standard, ``address'' means a specific address 
associated with a specific occupant name. Addresses subject to the Move 
Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.9.2, and the same address is used in a Standard Mail 
mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOALink).
    c. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *

400 Discount Mail Parcels

* * * * *

430 First-Class Mail

433 Rates and Eligibility

* * * * *

3.0 Basic Standards for First-Class Mail Parcels

* * * * *

3.5 Move Update Standard

3.5.1 Basic Standards

* * * * *
    [Revise item a as follows:]
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.6.2.
* * * * *

[[Page 28911]]

    [Revise item c as follows:]
    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.6.2, and the same address is used in a First-Class Mail 
mailing within 95 days after the address has been updated.
* * * * *

440 Standard Mail

443 Rates and Eligibility

* * * * *

3.0 Basic Standards for Standard Mail Parcels

* * * * *
    [Add new item 3.9 as follows:]

3.9 Move Update Standard

3.9.1 Basic Standards

    The Move Update standard is a means of reducing the number of 
mailpieces in a mailing that require forwarding, return, or discard by 
the periodic matching of a mailer's address records with customer-filed 
change-of-address orders received and maintained by the USPS. For the 
purposes of this standard, ``address'' means a specific address 
associated with a specific occupant name. Addresses subject to the Move 
Update standard must meet these requirements:
    a. Each address and associated occupant name used on the mailpieces 
in a mailing must be updated within 95 days before the mailing date, 
with one of the USPS-approved methods in 3.9.2.
    b. Each individual address in the mailing is subject to the Move 
Update standard.
    c. The Move Update standard is met when an address used on a 
mailpiece in a mailing at any class of mail is updated with an approved 
method in 3.9.2, and the same address is used in a Standard Mail 
mailing within 95 days after the address has been updated.
    d. Except for mail bearing an alternative address format, addresses 
used on pieces claiming Standard Mail rates, regardless of any required 
surcharge, must meet the Move Update standard.

3.9.2 USPS-Approved Methods

    The following methods are authorized for meeting the Move Update 
standard:
    a. Address Change Service (ACS).
    b. National Change of Address Linkage System (NCOALink).
    c. Ancillary service endorsements under 507.1.5.3, Standard Mail, 
except ``Forwarding Service Requested.''

3.9.3 Mailer Certification

    The mailer's signature on the postage statement certifies that the 
Move Update standard has been met for each address in the corresponding 
mailing presented to the USPS.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 if our 
proposal is adopted.

Neva Watson,
Attorney, Legislative.
[FR Doc. E7-9881 Filed 5-22-07; 8:45 am]
BILLING CODE 7710-12-P