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[Federal Register Volume 83, Number 6 (Tuesday, January 9, 2018)]
[Rules and Regulations]
[Pages 980-982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00005]

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POSTAL SERVICE

39 CFR Part 111

eInduction Option, Seamless Acceptance Program, and Full-Service 
Automation Option, Verification Standards

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is amending Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]), to add 
verification standards for the eInduction Option, Seamless Acceptance 
Program, and Full-Service Automation Option.

DATES: Effective: March 5, 2018.

FOR FURTHER INFORMATION CONTACT: Heather Dyer at (207) 482-7217, or 
Garry Rodriguez at (202) 268-7281.

SUPPLEMENTARY INFORMATION: The Postal Service published a notice of 
proposed rulemaking on October 31, 2017, (82 FR 50346-50348) to add the 
verification standards for the eInduction Option, Seamless Acceptance 
Program, and Full-Service Automation Option, which included a 30-day 
comment period.
    The Postal Service received 2 formal responses on the proposed 
rule, both of which included multiple comments.

Comments From the First Responder

    Comment: When measuring compliance against the ``active version of 
the Mail Direction File'' during eInduction verifications, does a 30-
day grace period apply?
    Response: Yes. The effective Mail Direction File (MDF) is 
distributed among the industry and PostalOne! applications at the 
beginning of each month to ensure valid container entry acceptance. 
Each effective MDF also observes a 30 day grace period allowing 
consumers to confirm mail prepared for the subsequent mailing period. 
For mail that is prepared in the current mailing period, the effective 
MDF will provide a source of valid entry facilities that will accept 
mail within the prepared mailing period. For mail that is prepared in 
the subsequent mailing period, the effective MDF's grace period 
observations will provide a source of valid entry facilities that will 
accept mail with the prepared mailing period. At this time the USPS 
does not plan on changing any system processes with regards to logging 
errors for eInduction. If mailers believe that invalid errors are being 
logged they may be researched through the review process.
    Comment: The Postal Service should consider removing eInduction 
assessment on undocumented containers for mailers that do not 
participate in Seamless Acceptance.
    Response: At this time, the USPS does not plan on changing any 
system processes, including postage assessment for eInduction. If 
mailers believe that they have proof of payment for a container that 
received an undocumented error they may request a review.

Comments From the Second Responder

    Comment: In reviewing the proposed DMM updates, there are several 
documents that are cross-referenced; these documents are not up to 
date.
    Response: The recommended changes to USPS Publication 685 have been 
noted and will be addressed through a separate forum. Changes to DMM 
Section 602.5.2 were published in the Address Quality Census 
Measurement and Assessment Process final rule of October 24, 2017 (82 
FR 49123-49128), and take effect on January 21, 2018. The USPS is 
working to update ``Publication 804--Drop Shipment Procedures for 
Destination Entry'' and ``Guide for Streamlined Mail Acceptance for 
Letters and Flats Reporting.''
    Comment: We disagree with the method USPS has adopted to assess 
additional postage charged for logical mailers in the Full-Service 
Intelligent Mail program. Please explain why the method is not 
consistent across all Streamlined programs.
    Response: At this time the USPS does not plan on changing the Full-
Service assessment process for logical mailings. If a mailer is able to 
provide documentation supporting a reduction in assessment due to 
evidence of physical mailings during the review process it will be 
taken into consideration.
    Comment: The Appeals Process outlined in the DMM Section 604.10.1.2 
does not appear to be consistent with the process outlined in 
Publication 685.
    Response: The Appeals Process for the eInduction, Full-Service, and 
Seamless Acceptance, programs are outlined in Section 6-3.3.3 PCSC 
Appeals of Publication 685. These programs are not covered by the 
timeline outlined in DMM Section 604.10.1.2. Mailers should work with 
their assessment reviewer to discuss the findings of the review and 
what type of documentation will be needed to file an appeal.
    Comment: We have outlined the differences between the DMM and 
Publication 685; please utilize the same language for consistency.
    Response: For each difference noted, changes to the DMM sections 
were made when applicable and appropriate. The recommended changes to 
Publication 685 have been noted and will be addressed through a 
separate forum.
    In addition, the second responder had numerous comments that were 
determined to be beyond the scope of this final rule. The Postal 
Service will review and address these comments in a separate forum with 
the responder.
    The Postal Service is amending DMM sections 705.20, eInduction 
Option, 705.22, Seamless Acceptance Program, and 705.23, Full-Service 
Automation Option, to add the applicable verification descriptions, 
error thresholds, and postage assessments, standards. These standards 
have been made available to the public via Publication 685, Publication 
for Streamlined Mail Acceptance for Letters and Flats, available at 
https://postalpro.usps.com, which also contains additional information 
on the verification processes.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM),

[[Page 981]]

incorporated by reference in the Code of Federal Regulations. See 39 
CFR 111.1.
    Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.

0
2. Revise the Mailing Standards of the United States Postal Service, 
Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

20.0 eInduction Option

20.1 Description

    [Revise the fourth sentence of 20.1 to read as follows:]
    * * * For additional information on the eInduction Option see 
Publication 685, Publication for Streamlined Mail Acceptance for 
Letters and Flats, available at https://postalpro.usps.com.
* * * * *
    [Add new subsection 20.5, Verifications, to read as follows:]

20.5 Verifications

    The six eInduction option verification descriptions, error 
thresholds, and postage assessments, are provided in 20.5.1 through 
20.5.6.

20.5.1 Undocumented (Extra) Containers Verification

    An Undocumented Container error occurs when a scanned IMcb is not 
found in an eDoc, or is included in an eDoc and associated to a postage 
statement in estimated (EST) status. Containers will be flagged as 
Undocumented 10 days after the scan unload date/time if no eDoc has 
been uploaded or if the postage statement is still in EST status. The 
threshold is 0%. All errors will be subject to an assessment amount of 
the average postage paid for each container mailed by the eDoc 
submitter CRID over the current invoice period to the eDoc submitter 
CRID or CRID tied to the MID contained within the IMcb.

20.5.2 Payment Verification

    All containers must be linked to a finalized postage statement in 
eInduction to verify payment. The error threshold is 0%. Payment 
Verification errors are logged when a scanned and accepted eInduction 
container is associated with a postage statement that is not in FIN or 
FPP status at the time of scanning. Containers above the error 
threshold will be subject to an assessment amount equal to the 
containers eDoc postage amount as indicated on the non-finalized 
postage statements. For Payment Errors logged on physical siblings of 
logical containers, the full postage of the logical container is 
charged to the first physical sibling container scanned. Any additional 
scans among other physical siblings will log errors, but will not 
result in an additional charge. Assessments will be logged against the 
eDoc submitter CRID.

20.5.3 Duplicate Verification

    eInduction requires IMcbs to remain unique for 45 days. The error 
threshold is 0.17%. Duplicate errors are logged when an IMcb is scanned 
and accepted during more than one FAST appointment in the previous 45 
days. Duplicate Errors are not logged if the duplicate scans take place 
within 5 hours of the original container scan. Errors above the 
threshold are subject to an assessment amount equal to the average 
postage paid for each container mailed by the eDoc submitter CRID over 
the invoice period.

20.5.4 Misshipped Verification

    Containers claiming a destination entry discount must be delivered 
to the correct entry locations per the active version of the Mail 
Direction File. The Mail Direction File is active at the beginning of 
the month and includes a 30 day grace period into the following month. 
The error threshold is 1.05%. Misshipped errors are logged when the 
container is scanned at an incorrect entry location, per the Mail 
Direction File. Errors over the threshold are subject to an assessment 
amount equal to the difference between the eDoc postage claimed, and 
the correct postage amount for the container. For misshipped errors 
logged against physical siblings of logical containers, postage is 
recalculated on the logical container, and divided by the number of 
physical siblings. This amount is then applied to each physical sibling 
in error to the eDoc submitter CRID.

20.5.5 Zone Discount Verification

    Pieces claiming a Zone Discount must be entered at the valid 
facility. The error threshold is 0.01%. Zone Discount errors are logged 
when one or more pieces on a container claim a lower entry zone than 
the zone calculated between the location where the container was 
entered, and the eDoc destination. Errors above the threshold are 
subject to an assessment amount equal to the difference between the 
eDoc postage claimed, and the correct postage amount for the container. 
For containers claiming a non-numeric Zone Discount in the eDoc, 
correct postage amount is calculated using the piece rate for the Entry 
Discount that is valid at the actual entry point for the mail class, 
shape, weight, mail prep, and presort identified in the eDoc. For Zone 
Discount errors logged against physical siblings of logical containers, 
postage is recalculated on the logical container, and divided by the 
number of physical siblings. This amount is then applied to each 
physical sibling in error to the eDoc submitter CRID.

20.5.6 Entry Point Discount (EPD) Verification

    eInduction pieces are required to be entered at a valid facility 
when claiming a destination entry discount. The error threshold is 
0.5%. EPD errors are logged when one or more pieces on a container 
claim an entry discount level that is not available at the location 
where the container was entered. Errors above threshold are subject to 
an assessment amount equal to the difference between the eDoc postage 
claimed and the correct postage amount for the container. For EPD 
errors logged against physical siblings of logical containers, postage 
is recalculated on the logical container, and divided by the number of 
physical siblings. This amount is then applied to each physical sibling 
in error to the eDoc submitter CRID.
* * * * *

22.0 Seamless Acceptance Program

22.1 Description

    [Revise the second sentence of 22.1 to read as follows:]
    * * * For additional information, on the Seamless Acceptance 
Program see Publication 685, Publication for Streamlined Mail 
Acceptance for Letters and Flats, available at https://postalpro.usps.com.
* * * * *
    [Add new subsection 22.4, Verifications, to read as follows:]

22.4 Verifications

    The five seamless acceptance program verification descriptions, 
error thresholds, and postage assessments, are provided in 22.4.1 
through 22.4.5.

[[Page 982]]

22.4.1 Undocumented (Piece) Verification

    An Undocumented error is logged when the IMb gathered during 
sampling or MPE scan cannot be linked to any eDoc submitted within the 
last 45 days. The error threshold is 0.3%. Pieces above the error 
threshold will be subject to an assessment amount equal to the average 
piece rate by mail class and CRID for the assessment month.

22.4.2 Delivery Point Verification

    A valid delivery point must be provided in the piece IMb. The error 
threshold is 2%. Delivery Point errors are logged when the delivery 
point provided in the eDoc is either not valid, or contains a generic 
+4 information with an address record type that is not General 
Delivery. Errors above the threshold are subject to an assessment 
amount equal to difference between the eDoc piece postage and correct 
postage amount.

22.4.3 Nesting/Sortation (MPE) Verification

    A Nesting/Sortation error is logged when the piece scanned is 
nested in a different tray or bundle than the tray or bundle that was 
identified in the eDoc. The error threshold is 1%. Errors above this 
threshold are subject to an assessment amount equal to the difference 
between the eDoc piece postage and the correct postage amount.

22.4.4 General Postage Adjustment Factor Verification

    The Postage Adjustment Factor (PAF) is a method to apply an error 
rate determined from handheld scanner samplings to the entire 
population of mailings within a calendar month. PAF is calculated on a 
monthly basis and measures the difference between the correct postage 
and the postage paid, expressed as a ratio of the correct postage due 
to the sum of eDoc postage for the sampled pieces. General PAF is used 
for errors in Postage and Weight verifications. The General PAF 
threshold factor is 1.05 (5%). A mailer will only be subject to an 
assessment when the eDoc submitter has exceeded the PAF threshold in 
the current billing month and three or more times in the previous 11 
billing months. The General PAF is applied to the total monthly eDoc 
postage for the eDoc submitter and assessments are issued to the eDoc 
submitter.

22.4.5 Mail Characteristic Postage Adjustment Factor Verification

    The Mail Characteristic, Postage Adjustment Factor (PAF), is used 
for errors in the processing category, mail class, nonprofit 
eligibility and content. The threshold factor is 1.05 (5%). A mailer 
will only be subject to an assessment when the eDoc submitter has 
exceeded the Mail Characteristic PAF threshold in the current billing 
month and three or more times in the previous 11 billing months. The 
Mail Characteristic PAF is applied at the eDoc Submitter CRID level and 
is calculated using the adjusted and eDoc postage attributed to the 
Mail Owner.
* * * * *

23.0 Full-Service Automation Option

23.1 Description

    [Revise the second sentence of 23.1 to read as follows:]
    * * * For additional information on the full-service automation 
option see Publication 685, Publication for Streamlined Mail Acceptance 
for Letters and Flats, available on PostalPro at http://postalpro.usps.com.
* * * * *
    [Add new subsection 23.6, Verifications, to read as follows:]

23.6 Verifications

    The six full-service verification descriptions, error thresholds, 
and postage assessments, are provided in 23.6.1 through 23.6.6.

23.6.1 Mailer Identification (MID) Verification

    The MID is a six- or nine-digit code included in the Intelligent 
Mail barcode suite, allowing identification of the party responsible 
for a mailpiece, handling unit, or container. A valid MID is one that 
is registered within the Postal Service systems and provided in the 
eDoc. The error threshold is 2% for the piece, handling unit, and 
container level. Errors over the threshold will be subject to an 
assessment amount equal to the removal of the full-service discount 
claimed for each piece in error above the threshold.

23.6.2 Service Type ID (STID) Verification

    The STID is a three-digit code included in the IMb for a mailpiece 
to provide mail class and service level. The error threshold is 2%. 
Errors over the threshold will be subject to an assessment amount equal 
to the removal of the full-service discount claimed for each piece in 
error above the threshold.

23.6.3 By/For Verification

    The By/For relationship recognizes the Mail Owner and Mail Service 
Provider in the eDoc. The error threshold is 5%. An error occurs when a 
valid Mail Preparer is not identified, a valid Mail Owner is not 
identified, Mail Preparer is incorrectly recorded as the Mail Owner, or 
the Mail Owner was previously identified as the Mail Preparer. Errors 
above the threshold are subject to an assessment amount equal to the 
removal of the full-service discount claimed for each piece in error 
above the threshold.

23.6.4 Barcode Uniqueness Verification

    Barcode uniqueness is met when a barcode is unique across all 
mailers and mailings for 45 days. The error threshold is 2%. Errors 
occur when the IMcb, IMtb or IMb is not unique across all mailings from 
all mailers over the previous 45 days of the Postage Statement Mailing 
Date that was provided in the eDoc. Errors above the threshold are 
subject to an assessment equal to the removal of the full-service 
discount claimed for each piece in error above the threshold.

23.6.5 Entry Facility Verification

    The entry facility location must be identified in the eDoc by a 
Locale Key or ZIP Code. The error threshold is 2%. Errors above the 
threshold are subject to an assessment amount of the full-service 
discount claimed for each piece in error above the threshold.

23.6.6 Unlinked Copal Verification

    Mailings that will be copalletized must be identified in the 
original eDoc submission. It is a requirement that the consolidator 
provide documentation within 14 days of the mailing date of the 
original eDoc to properly identify the linkage of the trays or sacks to 
the container. The error threshold is 5%. Errors above the threshold 
are subject to an assessment amount equal to the full-service discount 
claimed.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2018-00005 Filed 1-8-18; 8:45 am]
BILLING CODE 7710-12-P
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