[Federal Register Volume 63, Number 132 (Friday, July 10, 1998)]
[Rules and Regulations]
[Pages 37254-37255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-18434]


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POSTAL SERVICE

39 CFR Part 111


Elimination of Mixed BMC/ADC Pallets of Packages of Flats

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule revises Domestic Mail Manual (DMM) sections 
M020, M041, and M045 to eliminate the options for mailers to place 
packages and bundles of Periodicals Mail on mixed ADC pallets and to 
place packages and bundles of Standard Mail (A) and Standard Mail (B) 
on mixed BMC pallets. Mailers will continue to have the options to 
place sacks, trays, or parcels on mixed ADC or mixed BMC pallets, as 
appropriate for the class of mail.

EFFECTIVE DATE: September 8, 1998.

FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166.

SUPPLEMENTARY INFORMATION: On February 18, 1998, the Postal Service 
published in the Federal Register (63 FR 8154-8156) proposed revisions 
to the DMM to eliminate the options, available since the implementation 
of Classification Reform in July 1996, to place packages and bundles on 
mixed ADC pallets (Periodicals) and mixed BMC pallets (Standard Mail). 
Although these options offer some benefits in mailers' manufacturing 
and distribution handling processes by reducing sack usage, they have 
had a negative impact on service and mailpiece integrity.
    The deadline for submitting comments on the proposed revisions was 
April 6, 1998. All comments received or mailed by that date have been 
considered.

Evaluation of Comments Received

    There were only three written responses to the proposed revisions. 
One commenter noted that, as a printer, it prefers to place as much 
mail as possible on pallets because sacking is more labor intensive, 
but it also recognizes that mixed pallets may be more costly for the 
Postal Service to process. However, it was not in favor of 
implementation of the revisions at this time due to problems it has 
been experiencing in obtaining a sufficient supply of brown sacks for 
Periodicals. When the revised standards are implemented, the 
Periodicals that this company currently places on mixed ADC pallets 
will have to be placed in sacks. The mailer was concerned that the 
brown sack shortage would affect service.
    The Postal Service has completed its largest purchase ever of brown 
sacks and is confident that a sufficient quantity will be available on 
a regular basis to handle the volume shifts. In addition, the Chicago 
Mail Transport Equipment Service Center (MTESC) has recently opened. 
This is the first of 22 MTESCs that will open during the next year to 
ensure the availability of sacks.
    The second commenter is primarily concerned that the potential 
increase in sack usage will result in a slowdown and higher costs in 
its manufacturing process, which relies heavily on automation and 
robotics. These processes are not compatible with sacking. The 
commenter urged the Postal Service to continue to work with mailers on 
alternative preparation options that will help to eliminate sack usage. 
During the past several years, the Postal Service has been working with 
the mailing industry to understand how mailers sort mail to pallets and 
to identify opportunities for improvement. The joint industry/Postal 
Service Mailers Technical Advisory Committee (MTAC) Presort 
Optimization Work Group is currently discussing mail reallocation rules 
related to presort that would provide a means for mailers to optimize 
palletization. Although protecting the SCF pallet is the initial 
priority of the group, this effort could prevent some mail from falling 
to the mixed level. The Postal Service intends to publish draft rules 
this summer for mailer comment.
    In addition to using presort optimization to enhance palletization, 
mailers who prepare palletized plant verified drop shipments (PVDS) may 
be able, under the provisions of DMM M041.5.3, to reduce the volume of 
mail that may have to be sacked as a result of these revisions. DMM 
M041.5.3 states that in a mailing or mailing job presented for 
acceptance at a single postal facility, one overflow pallet may be 
prepared containing less than 250 pounds or three tiers/layers of 
letter trays if the mail is for the service area of the entry facility 
and the pallet is properly labeled under M045, based on its contents. 
No special authorization is needed. For example, if a PVDS mailer is 
entering mail at the Springfield, MA, BMC and has prepared one or more 
Springfield, MA, destination BMC pallets, the mailer may currently be 
placing overflow of less than 250 pounds from these pallets on a mixed 
BMC pallet. However, the mailer does have the option to place this 
overflow mail on a Springfield, MA, pallet instead of sacking the mail 
or placing it on a mixed ADC/BMC pallet under current standards, 
provided the less-than-minimum-volume pallet is deposited at the 
Springfield BMC. This addresses some of the service and cost issues 
that the revised standards are intended to address while providing 
mailers with an alternative to sacking under the conditions noted.
    The third commenter does not prepare many mixed pallets but is 
interested in any changes that could improve mail delivery times. 
Although not convinced that mixed pallets contribute to slower 
delivery, this mailer stated it would support the change, but suggested 
a longer implementation period than the 45 days suggested in the 
proposed rule. It needs additional lead time to implement the changes 
for mailings that are prepared on a 6-week select lead time. For over a 
year, the Postal Service has been communicating with the mailing 
industry on plans to eliminate the mixed pallet preparation option for 
packages and bundles as soon as a sufficient supply of sacks was 
available on a regular basis to handle the shift in volume. Now that 
this precondition is satisfied, the Postal Service believes it is 
reasonable to implement the changes as quickly as possible without 
causing a severe negative impact on our customers. Therefore, to 
address the concerns of this commenter and other mailers with similar 
production issues, the Postal Service has postponed the required 
implementation for 60 days.
    The Domestic Mail Manual is revised as follows. These changes are 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR part 111.

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

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

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

    2. Revise the following section of the Domestic Mail Manual as 
follows:
M Mail Preparation And Sortation

M000  General Preparation Standards

* * * * *

[[Page 37255]]

M020 Packages and Bundles

1.0  BASIC STANDARDS
* * * * *

1.4  Palletization

    [Amend the third sentence in 1.4 by deleting the reference to mixed 
BMC pallets to read as follows:]
    * * * Packages and bundles on BMC pallets must be shrinkwrapped and 
machinable on BMC parcel sorters; machinability is determined by the 
USPS.* * *
* * * * *

M040  Pallets

M041  General Standards

* * * * *
5.0  PREPARATION

5.1  Presort

    [Amend 5.1 by revising the last sentence and adding new sentences 
to read as follows:]
    * * * For sacks, trays, or machinable parcels on pallets, the 
mailer must prepare all required pallet levels before any mixed ADC or 
mixed BMC pallets are prepared for a mailing or job. Packages and 
bundles prepared under M045 must not be placed on mixed ADC or mixed 
BMC pallets. Packages and bundles that cannot be placed on pallets must 
be prepared in sacks under the standards for the rate claimed.

5.2  Required Preparation

    [Amend 5.2 by deleting the second and third sentences and revising 
the fourth sentence to read as follows:]
    * * * Mixed pallets of sacks, trays, or machinable parcels must be 
labeled to the BMC or ADC (as appropriate) serving the post office 
where mailings are entered into the mailstream. * * *
* * * * *

5.6  Sacked Mail

    [Amend 5.6 by revising the first sentence to read as follows:]
    Mail that is not palletized (e.g., the mailer chooses not to 
prepare BMC pallets, or the packages do not meet the machinability 
standards in M020) must be prepared under the standards for the rate 
claimed. * * *
* * * * *

M045  Palletized Mailings

* * * * *
    [Revise the heading of 2.0 to read as follows:]
2.0  PACKAGES OF FLATS

2.1  Standards

    [Amend 2.1 by revising the second sentence to read as follows:]
    * * * The palletized portion of a mailing may not include packages 
sorted to mixed ADCs, mixed BMCs, or to foreign destinations.
* * * * *

2.4  Size--Standard Mail (B)

* * * * *
    [Amend 2.4c by revising the second sentence to read as follows:]
    * * * Packages at other rates must be sorted to 5-digit, 3-digit, 
optional SCF, and ADC destinations, as appropriate.
* * * * *
3.0  OPTIONAL BUNDLES--PERIODICALS AND STANDARD MAIL (A)

3.1  Standards

    [Amend 3.1 by revising the second sentence to read as follows:]
    * * * The palletized portion of a mailing may not include bundles 
sorted to mixed ADCs, mixed BMCs, or to foreign destinations.
* * * * *
4.0  PALLET PRESORT AND LABELING
    [Amend the heading to read as follows:]

4.1  Packages, Bundles, and Sacks

* * * * *
    e. As appropriate:
    [Amend the beginning of (1) by adding ``(sacks and trays only)'' to 
read as follows:]
    (1) Periodicals (sacks and trays only): mixed ADC: optional; * * *
    [Amend the beginning of (2) by adding ``(sacks and trays only)'' to 
read as follows:]
    (2) Standard Mail (sacks and trays only): mixed BMC: optional; * * 
*
* * * * *
5.0  PALLETS OF PACKAGES, BUNDLES, AND TRAYS OF LETTER-SIZE MAIL
* * * * *
    [Amend 5.3 to eliminate references to mixed BMC pallets and to 
insert ``(trays only)'' to read as follows:]

5.3  BMC and Mixed BMC Pallets

    Packages and bundles placed on BMC pallets must be machinable on 
BMC parcel sorting equipment. Line 2 on pallet labels must reflect the 
processing category of the pieces. A BMC or mixed BMC (trays only) 
pallet may include pieces that are eligible for the DBMC rate and 
others that are ineligible if the mailer provides documentation showing 
the pieces that qualify for the DBMC rate.
* * * * *
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-18434 Filed 7-9-98; 8:45 am]
BILLING CODE 7710-12-P