[Federal Register Volume 63, Number 139 (Tuesday, July 21, 1998)]
[Rules and Regulations]
[Pages 39030-39032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19344]


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POSTAL RATE COMMISSION

39 CFR Part 3001
[Docket Nos. RM98-1, MC97-3 and MC97-4; Order No. 1212]


Amendments to Domestic Mail Classification Schedule

AGENCY: Postal Rate Commission.

ACTION: Final rule.

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SUMMARY: This final rule sets forth the changes to the Domestic Mail 
Classification Schedule (DMCS) as a result of the Governors' Decisions 
on the Recommended Decisions of the Postal Rate Commission in Docket 
Nos. MC97-3 and MC97-4. The Commission's Decision in Docket No. MC97-3 
(issued September 4, 1997) changed the classification provisions for 
Bound Printed Matter Weight Limitations. The Commission's Recommended 
Decision in Docket No. MC97-4 (issued September 4, 1997) established 
classification provisions for Bulk Parcel Return Service and Shipper-
Paid Forwarding. For these reasons, Appendix A to Subpart C has been 
amended to reflect those changes.

DATES: This rule is effective July 21, 1998.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
Postal Rate Commission, 1333 H Street, NW., Suite 300, Washington, DC 
20268-0001, (202) 789-6820.

SUPPLEMENTARY INFORMATION: On June 5, 1997, the Commission issued Order 
No. 1180 exercising its authority under 39 U.S.C. 3623(b) to initiate a 
proceeding, designated as Docket No. MC97-3, to consider increasing the 
maximum weight limitation applicable to the bound printed matter 
subclass from 10 pounds to 15 pounds. This action was taken in response 
to a joint filing by the Advertising Mail Marketing Association, the 
Association of American Publishers, and the Direct Marketing 
Association. On August 1, 1997, the Postal Service filed testimony in 
support of the proposed classification change, contemporaneous with the 
filing of a proposed stipulation and agreement. Notice was published in 
the Federal Register at 62 FR 32125-32128.
    On September 4, 1997, the Postal Rate Commission transmitted to the 
Governors its Opinion and Recommended Decision approving the 
stipulation and agreement, which was unopposed. The Decision of the 
Governors of the United States Postal Service on the Recommended 
Decision of the Postal Rate Commission on Bound Printed Matter Weight 
Limitations, Docket No. MC97-3, September 8, 1997, accepted the 
Recommended Decision of the Postal Rate Commission. Resolution No. 97-
11 established October 5, 1997, as the implementation date for changes 
relating to Bound Printed Matter.
    On June 6, 1997, the Postal Service, pursuant to its authority 
under 39 U.S.C. 3621, et seq., filed a request with the Postal Rate 
Commission for a recommended decision on certain limited changes 
affecting the classifications and rates for Standard (A) parcels. 
Contemporaneous with the filing of the Request, the Postal Service 
filed a Motion to Establish Procedural Mechanisms Concerning Settlement 
with an attached stipulation and agreement.
    On June 11, 1997, the Commission issued Order No. 1184 designating 
this filing as Docket No. MC97-4, Bulk Parcel Return Service and 
Shipper-Paid Forwarding Classifications and Fees, outlining the Postal 
Service request, allowing interested parties an opportunity to 
intervene, designating the Director of the Office of the Consumer 
Advocate to represent the interests of the general public, and 
appointing the Service as settlement coordinator. Notice was published 
in the Federal Register at 62 FR 32832-32837.
    The Commission issued its recommended decision on the Postal 
Service Request on September 4, 1997. The recommended decision adopted 
the revised stipulation and agreement, filed on August 12, 1997. The 
revised agreement was signed by 9 of the 12 participants in this 
proceeding.
    The Decision of the Governors of the United States Postal Service 
on the Recommended Decision of the Postal Rate Commission on Bulk 
Parcel Return Service and Shipper-Paid Forwarding, Docket Nos. MC97-4 
and C97-1, October 6, 1997, accepted the Recommended Decision of the 
Postal Rate Commission. Resolution No. 97-15 established October 12, 
1997, as the effective date for implementation of changes to the Bulk 
Parcel Return Service; and January 4, 1998, as the effective date for 
the changes related to Shipper Paid Forwarding.

Regulatory Flexibility Act

    Pursuant to 5 U.S.C. 605(b) of the Regulatory Flexibility Act, the 
Commission certifies that this rulemaking is not expected to have a 
significant economic impact on a substantial number of small entities. 
Accordingly, regulatory flexibility analysis is not required.

List of Subjects in 39 CFR Part 3001

    Administrative practice and procedure, Confidential business 
information, Freedom of information, Postal Service, Sunshine Act.

    For the reasons stated in the preamble, 39 CFR part 3001 is amended 
as follows:

PART 3001--RULES OF PRACTICE AND PROCEDURE

    1. The authority citation for part 3001 continues to read as 
follows:

    Authority: 39 U.S.C. 404(b), 3603, 3622-24, 3661, 3662.

Subpart C--Rules Applicable to Requests for Establishing or 
Changing the Mail Classification Schedule

    2. Appendix A to Subpart C--Postal Service Rates and Changes is 
amended as follows:
    a. Amend the Table of Contents by adding Classification Schedule 
SS-21--Bulk Parcel Return Service and Classification Schedule SS-22--
Shipper-Paid Forwarding.
    b. In section 322.31, remove the number ``10'' and replace it with 
``15''.
    c. Revise section 353.1 to read as set forth below.
    d. Add new section 363 to read as set forth below.
    e. Amend section 2033 by adding, after ``450'', the words ``and 
schedules SS-21 and SS-22''.
    f. Classification Schedules SS-21 and SS-22 are added to read as 
set forth below.
    g. Add Rate Schedule SS-21 to read as set forth below.
    h. Amend Schedule 1000 by adding after ``Business Reply Mail 
Permit'', a new entry for ``Authorization to Use Bulk Parcel Return 
Service''.

Appendix A to Subpart C--Postal Service Rates and Changes

* * * * *
    353.1  Single Piece, Regular, Enhanced Carrier Route, Nonprofit and 
Nonprofit Enhanced Carrier Route Subclasses (section 321).
    Undeliverable-as-addressed Standard Mail mailed under section 321 
will be returned on request of the mailer, or forwarded and returned on 
request of

[[Page 39031]]

the mailer. Undeliverable-as-addressed combined First-Class and 
Standard pieces will be returned as prescribed by the Postal Service. 
Except as provided in Schedule SS-21, the Single Piece Standard rate is 
charged for each piece receiving return only service. Except as 
provided in Schedule SS-22, charges for forwarding-and-return service 
are assessed only on those pieces which cannot be forwarded and are 
returned. Except as provided in Schedules SS-21 and SS-22, the charge 
for those returned pieces is the appropriate Single Piece Standard rate 
for the piece plus that rate multiplied by a factor equal to the number 
of section 321 Standard pieces nationwide that are successfully 
forwarded for every one piece that cannot be forwarded and must be 
returned.
* * * * *

363  Regular and Nonprofit

    Regular and Nonprofit subclass mail will receive the following 
additional services upon payment of the appropriate fees.

------------------------------------------------------------------------
                  Service                              Schedule         
------------------------------------------------------------------------
a. Bulk Parcel Return Service..............  SS-21                      
b. Shipper-Paid Forwarding.................  SS-22                      
------------------------------------------------------------------------

* * * * *

Classification Schedule SS-21--Bulk Parcel Return Service

21.01  Definition

    21.010  Bulk Parcel Return Service provides a method whereby high-
volume parcel mailers may have undeliverable-as-addressed machinable 
parcels returned to designated postal facilities for 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.

21.02  Description of Service

    21.020  Bulk Parcel Return Service is available only for the return 
of machinable parcels, as defined by the Postal Service, initially 
mailed under the following Standard Mail subclasses: Regular and 
Nonprofit.

21.03  Requirements of the Mailer

    21.030  Mailers must receive authorization from the Postal Service 
to use Bulk Parcel Return Service.
    21.031  To claim eligibility for Bulk Parcel Return Service at each 
facility through which the mailer requests Bulk Parcel Return Service, 
the mailer must demonstrate receipt of 10,000 returned machinable 
parcels at a given delivery point in the previous postal fiscal year or 
must demonstrate a high likelihood of receiving 10,000 returned parcels 
in the postal fiscal year for which the service is requested.
    21.032  Payment for Bulk Parcel Return Service is made through 
advance deposit account, or as otherwise specified by the Postal 
Service.
    21.033  Mail for which Bulk Parcel Return Service is requested must 
bear endorsements prescribed by the Postal Service.
    21.034  Bulk Parcel Return Service mailers must meet the 
documentation and audit requirements of the Postal Service.

21.04  Other Services

    21.040  The following services may be purchased in conjunction with 
Bulk Parcel Return Service:

------------------------------------------------------------------------
                                              Classification  schedule  
------------------------------------------------------------------------
a. Address Correction Service.............  SS-1                        
b. Certificate of Mailing.................  SS-4                        
c. Shipper-Paid Forwarding................  SS-22                       
------------------------------------------------------------------------

21.05  Fee

    21.050  The fee for Bulk Parcel Return Service is set forth in Fee 
Schedule SS-21.

21.06  Authorizations and Licenses

    21.060  A permit fee as set forth in Fee Schedule 1000 must be paid 
once each calendar year by mailers utilizing Bulk Parcel Return 
Service.
    21.061  The Bulk Parcel Return Service permit may be canceled for 
failure to maintain sufficient funds in an advance deposit account to 
cover postage and fees on returned parcels or for failure to meet the 
specifications of the Postal Service.

Classification Schedule SS-22--Shipper-Paid Forwarding

22.01  Definition

    22.010  Shipper-Paid Forwarding provides a method whereby mailers 
may have undeliverable-as-addressed machinable parcels forwarded at 
Standard Mail Single Piece rates for up to one year from the date that 
the addressee filed a change-of-address order. If the parcel, for which 
Shipper-Paid Forwarding is elected, is returned, the mailer will pay 
the appropriate Standard Mail Single Piece rate, or the Bulk Parcel 
Return Service fee, if that service was elected.

22.02  Description of Service

    22.020  Shipper-Paid Forwarding is available only for the 
forwarding of machinable parcels, as defined by the Postal Service, 
initially mailed under the following Standard Mail subclasses: Regular 
and Nonprofit.

22.03  Requirements of the Mailer

    22.030  Shipper-Paid Forwarding is available only in conjunction 
with automated Address Correction Service in Schedule SS-1.
    22.031  Mail for which Shipper-Paid Forwarding is purchased must 
meet the preparation requirements of the Postal Service.
    22.032  Payment for Shipper-Paid Forwarding is made through advance 
deposit account, or as otherwise specified by the Postal Service.
    22.033  Mail for which Shipper-Paid Forwarding is requested must 
bear endorsements prescribed by the Postal Service.

22.04  Other Services

    22.040  The following services may be purchased in conjunction with 
Shipper-Paid Forwarding:

------------------------------------------------------------------------
                                              Classification  schedule  
------------------------------------------------------------------------
a. Certificate of Mailing.................  SS-4                        
b. Bulk Parcel Return Service.............  SS-21                       
------------------------------------------------------------------------

22.05  Applicable Rates

    22.050  Except as provided in Schedule SS-21, Standard Mail Single 
Piece Rates, set forth in Rate Schedule 321.1, apply to pieces 
forwarded or returned in connection with Shipper-Paid Forwarding.
* * * * *

------------------------------------------------------------------------
      Special services             Description               Fee        
------------------------------------------------------------------------
                                                                        
*                  *                  *                  *              
                  *                  *                  *               
Schedule SS-21..............                                            
    Bulk Parcel Return        Per Returned Piece..                      
 Service.                                                               
                                                                        

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    Issued by the Commission on April 20, 1998.
Cyril J. Pittack,
Acting Secretary.
[FR Doc. 98-19344 Filed 7-20-98; 8:45 am]
BILLING CODE 7710-FW-P