[Federal Register Volume 63, Number 75 (Monday, April 20, 1998)]
[Rules and Regulations]
[Pages 19407-19408]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-10289]


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POSTAL SERVICE

39 CFR Part 111


Experimental First-Class and Priority Mail Small Parcel 
Automation Rate Category

AGENCY: Postal Service.

ACTION: Final rule; notice of experiment expiration.

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SUMMARY: On April 18, 1996, the Postal Service published a final rule 
in the Federal Register (61 FR 17206-17215) and adopted amendments to 
the Domestic Mail Manual implementing the Decision of the Governors of 
the United States Postal Service on the Recommended Decision of the 
Postal Rate Commission on the Experimental First-Class and Priority 
Mail Small Parcel Automation Rate Category, Docket No. MC96-1. One of 
the provisions of the Postal Rate Commission, which was approved by the 
Governors of the Postal Service, was that the experiment would be 
limited to 2 years ending on April 28, 1998. This is to serve notice 
that the Postal Service intends to allow the experiment to end on its 
originally scheduled expiration date without filing a request with the 
Postal Rate Commission to establish

[[Page 19408]]

permanent classifications and discounts.

DATES: Effective April 28, 1998.

FOR FURTHER INFORMATION CONTACT: Paul H. Lettmann, (202) 268-6261 or 
Susan Duchek, (202) 268-2990.

SUPPLEMENTARY INFORMATION: The Domestic Mail Classification Schedule 
(DMCS) provisions establishing the experimental classifications, 
recommended by the Postal Rate Commission and approved by the Governors 
of the Postal Service in March and April 1996, respectively, state that 
the Experimental First-Class and Priority Mail Small Parcel Automation 
Rate Category expires on April 28, 1998. The Postal Service has 
determined to publish this notice to ensure that all interested parties 
are afforded the opportunity of receiving advance notice of the 
experiment expiration, as well as to allow participating customers time 
during which they might make any necessary modifications in their 
mailing operations or practices before the experiment ends.
    The experiment had three basic objectives: to determine the 
feasibility and practicality of offering an automation discount for 
First-Class Mail and Priority Mail parcels; to gauge mailer interest 
and acceptance; and to confirm that the integration of barcode scanners 
on parcel sorters provides significant productivity enhancements in the 
processing of small parcels with barcodes versus keying of the same or 
similar pieces. During the experiment, participants were granted a 
four-cent per-piece discount on properly prepared First-Class Mail and 
Priority Mail prebarcoded small parcels at three test sites equipped 
with barcode-reading small parcel and bundle sorters. The Postal 
Service decision not to proceed further is based on the fact that data 
collected during the experiment indicated that cost savings resulting 
from the prebarcoding of parcels were insufficient to support the four-
cent per piece discount, thus placing the Postal Service in a position 
of being unable to offer a discount that might prove attractive to 
small parcel mailers in general. Moreover, the level of customer 
interest in the experiment was disappointing throughout. Even with the 
four-cent per piece discount, only four customers chose to join with 
the Postal Service in the experiment. Two of these decided to cease 
their mailings prior to the April 28, 1998, expiration date.

List of Subjects in 39 CFR Part 111

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

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552 (a); 39 U.S.C 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise G090 of the Domestic Mail Manual as set forth below:

G  GENERAL INFORMATION

G090  Experimental Classifications and Rates

    [Delete G091 in its entirety effective April 28, 1998.]

G091  Barcoded Small Parcels

* * * * *
    An appropriate amendment to 39 CFR 11.3 will be published to 
reflect these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-10289 Filed 4-15-98; 8:52 am]
BILLING CODE 7710-12-P