[Federal Register Volume 62, Number 199 (Wednesday, October 15, 1997)]
[Rules and Regulations]
[Pages 53539-53541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27299]


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POSTAL SERVICE

39 CFR Part 111


Bulk Parcel Return Service and Shipper Paid Forwarding

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the Domestic Mail Manual (DMM) 
standards adopted by the Postal Service to implement the decision of 
the Governors of the Postal Service in Postal Rate Commission Docket 
No. MC97-4, Bulk Parcel Return Service and Shipper Paid Forwarding.

EFFECTIVE DATES: The amendments to section S concerning Bulk Parcel 
Return Service are effective October 12, 1997, and the amendments to 
sections F and R concerning Shipper Paid Forwarding are effective 
January 4, 1998.

FOR FURTHER INFORMATION CONTACT: Tom DeVaughan, (202) 268-4491.

SUPPLEMENTARY INFORMATION: On June 6, 1997, the United States Postal 
Service filed a Request with the Postal Rate Commission pursuant to 
sections 3622 and 3623 of the Postal Reorganization Act, 39 U.S.C. 101 
et seq., for a recommended decision on proposed changes to the Domestic 
Mail Classification Schedule (DMCS). The proposed revisions also 
included proposed new fees. The Postal Service requested the 
consideration of two changes affecting the forwarding and return of 
Standard Mail (A) parcels that were initially considered in Docket No. 
MC97-2. It requested that Bulk Parcel Return Service (BPRS) and Shipper 
Paid Forwarding (SPF) be established.
    Pursuant to 39 U.S.C. 3624, on September 4, 1997, the PRC issued 
its Recommended Decision in Docket MC97-4, to the Governors of the 
United States Postal Service. That decision adopted the BPRS and SPF 
classifications and fees proposed in a Revised Stipulation and 
Agreement submitted by most of the parties in the proceeding. Pursuant 
to 39 U.S.C. 3625, the Governors acted on the PRC's Recommendation on 
October 6, 1997.
    The Governors approved the PRC's recommendations, and set an 
implementation date of October 12, 1997, for BPRS. Due to software and 
other support modifications needed for Computer Forwarding Sites and 
the Address Change Service network to support SPF, the Governors set 
January 4, 1998, for the effective date of SPF.
    Under current practice, forwarding and return of bulk Standard Mail 
(A) parcels are obtained by endorsing pieces ``Forwarding Service 
Requested'' (or until December 31, 1997, ``Forwarding and Return 
Postage Guaranteed'') or ``Address Service Requested'' (or until 
December 31, 1997, ``Forwarding and Return Postage Guaranteed, Address 
Correction Requested''). The postage charged at the time that a parcel 
is returned is a weighted fee that is 2.472 times the applicable 
single-piece rate. This fee indirectly pays for forwarding service of 
other parcels: 1.472 is the average number of pieces forwarded for

[[Page 53540]]

every piece that is returned. Multiplying 1.472 by the single-piece 
rate is intended to cover the cost of the forwarding service.
    BPRS and SPF will provide mailers other options. SPF allows mailers 
to pay forwarding postage (the applicable single-piece rate) directly 
through the use of the tracking capabilities of the existing electronic 
Address Change Service (ACS). Only mailers authorized to participate in 
ACS and who mail machinable parcels with the required endorsement will 
be eligible. An advance postage due deposit account is required. BPRS, 
through bulk handling of returned parcels, lowers the average cost of 
the return service. BPRS mailers must arrange for pickup of their 
returned parcels in bulk at a specified frequency at a designated 
postal facility(s), or arrange to have their returned parcels delivered 
to them in bulk by the Postal Service. Only machinable parcels weighing 
less than one pound, with the required endorsements, are eligible for 
BPRS. A minimum requirement of 10,000 returned parcels per year at each 
site (return address) is required. BPRS mailers must document their 
returned parcel volume and maintain an advance deposit account. A flat 
$1.75 per-piece fee for each returned parcel and an annual permit fee 
of $85.00 are required at each designated facility. BPRS and SPF can be 
combined, beginning with the January 4, 1998, effective date for SPF.
    This final rule contains the DMM standards adopted by the Postal 
Service to implement the Governors decision. Appropriate clarifications 
are included.

Lists of Subjects in 39 CFR Part 111

    Postal Service.

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

PART 111--[AMENDED]

    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, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    Revise the following sections of the Domestic Mail Manual as noted 
below:
* * * * *

F  FORWARDING AND RELATED SERVICES

F010  Basic Information

* * * * *
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES
* * * * *

5.3  Standard Mail (A)

* * * * *
[Redesignate existing 5.3c through 5.3e as 5.3d through 5.3f, 
respectively; redesignate existing 5.3g as 5.3i. Amend 5.3 by adding a 
new 5.3c and new 5.3h to read as follows:].
* * * * *
    c. Effective January 4, 1998, mail that qualifies for Shipper Paid 
Forwarding (F020) under the applicable standards is forwarded (and if 
necessary) returned at the Standard Mail (A) single-piece rate.
* * * * *
    h. Mail that qualifies for Bulk Parcel Return Service (BPRS) under 
the applicable standards in S924 is returned at the BPRS per piece fee, 
if the mailer uses one of the endorsements that includes ``-- BPRS.'' 
Until January 4, 1998, when SPF becomes effective, mailers using BPRS 
will not be able to request forwarding services.

------------------------------------------------------------------------
                                                                        
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``Return Service Requested--BPRS''................  Piece returned with 
                                                     new address or     
                                                     reason for         
                                                     nondelivery        
                                                     attached; only the 
                                                     Bulk Parcel Return 
                                                     Service fee charged
                                                     (address correction
                                                     fee not charged).  
            (Effective January 4, 1998)                                 
``Address Service Requested--BPRS''...............  Months 1 through 12:
                                                     piece forwarded; no
                                                     charge to          
                                                     addressee; separate
                                                     ACS notice of new  
                                                     address provided;  
                                                     ACS address        
                                                     correction fee and 
                                                     postage at single- 
                                                     piece Standard Mail
                                                     (A) rate charged   
                                                     via ACS participant
                                                     code.              
                                                    Months 13 through   
                                                     18: piece returned 
                                                     with new address   
                                                     attached; only the 
                                                     Bulk Parcel Return 
                                                     Service fee charged
                                                     (address correction
                                                     fee not charged).  
                                                    After month 18, or  
                                                     if undeliverable:  
                                                     piece returned with
                                                     reason for         
                                                     nondelivery        
                                                     attached; only Bulk
                                                     Parcel Return      
                                                     Service fee charged
                                                     (address correction
                                                     fee not charged).  
------------------------------------------------------------------------

* * * * *

F020  Forwarding

* * * * *
3.0  POSTAGE FOR FORWARDING
* * * * *

3.5  Standard Mail (A)

[Amend 3.5 to read as follows:]
    Generally, Standard Mail (A) is subject to collection of additional 
postage from the mailer when forwarding service is provided by charging 
the Standard Mail (A) weighted fee on all returns. Shipper Paid 
Forwarding, used in conjunction with Address Change Service (F030), 
provides mailers of Standard Mail (A) machinable parcels an option of 
paying forwarding postage at the Standard Mail (A) single-piece rate. 
Mail that qualifies for Bulk Parcel Return Service (BPRS) is returned 
at the BPRS per piece charge if the mailer uses one of the ancillary 
service endorsements that specifies BPRS (e.g., ``Return Service 
Requested--BPRS''). * * *
* * * * *

F030  Address Correction, Address Change, FASTforward,<SUP>SM</SUP> and 
Return Services

* * * * *
2.0  ADDRESS CHANGE SERVICE (ACS)

2.1  Description

[Amend 2.1 to read as follows:]
    Address Change Service (ACS) centralizes, automates, and improves 
the processing of address correction requests for mailers. ACS involves 
transmitting address correction information to a central point where 
the changes are consolidated electronically by unique publication or 
mailer identifier. These records are sequentially organized by USPS-
assigned codes and distributed to each participating mailer. ACS can 
also be used to pay forwarding postage on most Standard Mail pieces 
using Shipper Paid Forwarding under 2.5.
* * * * *
[Add new 2.5 to read as follows:]

2.5  Shipper Paid Forwarding

    Shipper Paid Forwarding (SPF) is an ACS fulfillment vehicle. It 
allows mailers of Standard Mail (A) machinable parcels (effective 
January 4, 1998), and most Standard Mail (B) to pay forwarding charges 
via approved ACS participant code(s). For information, write to the 
National

[[Page 53541]]

Customer Support Center (see G043 for address).
* * * * *
R  RATES AND FEES
* * * * *

R600  Standard Mail

* * * * *
10.0  FEES

10.1  Mailing

[Redesignate current 10.1b and 10.1c as 10.1c and 10.1d respectively; 
add new 10.1b to read as follows]
    b. Bulk Parcel Return Service Permit Fee: $85.00
* * * * *
[Add new 10.4 to read as follows:]

10.4  Bulk Parcel Return Service Fee

    Bulk Parcel Return Service fee per piece returned: $1.75
* * * * *

S900  Special Postal Services

* * * * *

S920  Convenience

* * * * *
[Add new S924 to read as follows:]

S924  Bulk Parcel Return Service

1.0  BASIC INFORMATION

1.1  Description

    Bulk Parcel Return Service (BPRS) provides a method whereby high-
volume parcel mailers may have undeliverable-as-addressed machinable 
parcels returned to designated postal facilities for bulk pickup by the 
mailer at a predetermined frequency prescribed by the Postal Service, 
or delivered by the Postal Service in bulk in a manner and frequency 
prescribed by the Postal Service. Mailers using this service pay only 
the BPRS per piece fee for each parcel returned.

1.2  Availability

    BPRS is available only for the return of machinable parcels, as 
defined in C050, initially prepared and mailed as Regular or Nonprofit 
Standard Mail (A) machinable parcels. Mail for which BPRS is requested 
must bear one of the BPRS endorsements in F010 and a return address 
that is in the delivery area of the post office that issued the BPRS 
permit. Effective January 4, 1998, BPRS may also be combined with the 
Shipper Paid Forwarding service (F030). Any Standard Mail (A) parcel 
that qualifies for a single-piece Standard Mail (B) rate under the 
applicable standards, and that contains the name of the Standard Mail 
(B) rate in the mailer's ancillary service endorsement is not eligible 
for BPRS.

1.3  Payment Guarantee

    The permit holder guarantees payment of fees on all returned 
parcels from a centralized advance deposit postage due account.

1.4  Where Service Established

    BPRS may be established at any post office in the United States and 
its territories and possessions or at any U.S. military post office 
overseas (APO/FPO). It is not available in any foreign country.
2.0  PERMITS

2.1  Application Process and Participation

    To participate in BPRS, the mailer must make a written request to 
the postmaster at each post office where parcels are to be returned. 
The request must:
    a. Demonstrate receipt of 10,000 returned machinable Standard Mail 
(A) parcels at a given delivery point during the previous 12 months, or
    b. Demonstrate a high likelihood of receiving a minimum of 10,000 
returned machinable Standard Mail (A) parcels at a given delivery point 
in the coming 12 months.
    The written request must be submitted with the annual permit fee, a 
description of the mail (e.g., size, packaging), a sample of the 
documentation to be used to substantiate individually, the number of 
parcels returned each day, and the requested frequency and location of 
the pickup or delivery of the parcels. If the mailer's request is 
approved, the USPS issues the mailer an authorization letter and 
agreement with the BPRS permit number (which will be used solely for 
account and annual fee tracking). The BPRS permit number is not to 
appear on the mail. The mailer must have a valid postage due advance 
deposit account and pay the annual BPRS permit fee to participate in 
BPRS.

2.2  Permit Renewal

    An annual renewal notice is provided to each BPRS permit holder. 
The notice must be returned to the post office that issued the permit 
with the fee payment or authorization for the postmaster to deduct the 
fee from the advance deposit account by the expiration date of the 
permit. Written authorization is not needed for permit renewal if there 
is no change to the authorization on file at the post office where the 
parcels are to be returned. If, after notice, the permit holder does 
not renew a BPRS permit, the USPS endorses the mail ``Bulk Parcel 
Return Service Canceled'' and charges postage due at the single-piece 
Standard Mail (A) rate. If the single-piece Standard Mail (A) rate is 
not paid, the mail is then forwarded to the nearest mail recovery 
center for final disposition.

2.3  Procedure

    An approved BPRS permit and fee payment must be on file at every 
post office to which parcels are returned.

2.4  Permit Cancellation

    The USPS may cancel a permit if the permit holder fails to meet the 
minimum requirements, refuses to accept and pay the required fee for 
parcels returned, fails to keep sufficient funds in the advance deposit 
account to cover fees due for returned parcels, or fails to meet terms 
of the authorization (e.g., fails to pickup mail on agreed upon 
frequency).

2.5  Reapplying After Cancellation

    To receive a new permit at the same post office after a BPRS permit 
is canceled, the applicant must resubmit a letter to that office; pay a 
new permit fee; provide evidence that the reasons for the permit 
cancellation are corrected; and provide and keep funds in an advance 
deposit account to cover normal returns for at least 2 weeks.
3.0  POSTAGE AND FEES

3.1  Permit Fee

    A permit fee is charged once each 12-month period on the 
anniversary date of the permit. The fee may be paid in advance only for 
the next year and only during the last 30 days of the current service 
period. The fee charged is that which is in effect on the date of 
payment.

3.2  Payment

    The permit holder must pay BPRS per piece fees by an advance 
deposit account. The post office delivers parcels under this service 
only when estimated sufficient funds are in the account to pay all 
applicable fees. The permit holder may establish a unique advance 
deposit account or use an existing one to pay postage under BPRS.
* * * * *
    An appropriate amendment to 39 CFR 111.3 will be published to 
reflect these changes.
Neva R. Watson,
Alternate Liaison Officer.
[FR Doc. 97-27299 Filed 10-10-97; 11:50 am]
BILLING CODE 7710-12-P