[Federal Register Volume 66, Number 108 (Tuesday, June 5, 2001)]
[Rules and Regulations]
[Pages 30064-30065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13973]


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POSTAL SERVICE

39 CFR Part 111


Eligibility Requirements for Attachments and Enclosures With 
Bound Printed Matter

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule revises the Domestic Mail Manual (DMM) to 
implement changes to the standards governing permissible attachments 
and enclosures with Bound Printed Matter.

EFFECTIVE DATE: June 14, 2001.

FOR FURTHER INFORMATION CONTACT: Jerome M. Lease, 703-292-4184.

SUPPLEMENTARY INFORMATION: On March 26, 2001, the Postal Service 
published a proposed rule in the Federal Register (66 FR 16431) 
soliciting comments concerning the standards in the Domestic Mail 
Manual (DMM) governing permissible attachments and enclosures with 
Bound Printed Matter (BPM) eligible to be mailed at BPM rates.
    Under current postal standards, the only attachments and enclosures 
authorized to be mailed with qualifying Bound Printed Matter at BPM 
rates are printed matter mailable as Standard Mail and merchandise 
samples meeting prescribed conditions. The proposed change would 
rescind the provision concerning merchandise samples. In its place, the 
Postal Service proposed the inclusion of ``nonprint'' attachments and 
enclosures so long as the amount of the attachments and enclosures is 
relatively modest compared to the amount of qualifying Bound Printed 
Matter and each has minimal value. In each case, objective standards 
were proposed for application of the tests. That is, the proposed rule 
allows for the inclusion of nonprint attachments and enclosures so long 
as the combined weight of all nonprint attachments and enclosures in 
the mailpiece is less than or equal to 25 percent of the weight of the 
Bound Printed Matter in the mailpiece. In addition, the individual cost 
of each nonprint attachment or enclosure must be less than or equal to 
the cost of a ``low-cost'' item as defined in DMM E670.5.11, and the 
combined cost of all nonprint attachments and enclosures may not exceed 
two times the cost of a low-cost item as defined in DMM E670.5.11. The 
``low-cost'' amount for calendar year 2001 is $7.60 and this amount is 
adjusted for inflation annually by the Internal Revenue Service. For 
purposes of this test, ``cost'' is the actual cost to the mailer for 
the item, rather than the price for which it sells the item, 
represented value, market value, or other amount.
    In sum, some of the nonprint attachments and enclosures permitted 
with Bound Printed Matter under the current standard would also be 
permissible under the new standard, while some of these attachments and 
enclosures would not be permitted under the new standard. In addition, 
some matter not permitted as attachments and enclosures under the 
current standard would be permissible under the new standard.
    The Postal Service received 23 comments in response to the 
proposal. Twenty-two comments supported the proposal to replace the 
current standard with an objective standard based on the weight and 
value of attachments and enclosures. A number of these comments stated 
that the objective standards would be easier for mailers and postal 
personnel to understand and use, and thus would facilitate the 
preparation of mailings and acceptance of mail. Some comments also 
noted that efforts to revise standards in this manner are appropriate 
in view of the changes taking place in the publishing industry. Of the 
22 favorable comments, 18 fully supported the proposed weight and value 
standards. Three commenters requested that the weight limit on nonprint 
attachments and enclosures be increased from 25 percent to 50 percent 
and one commenter requested that the limit be increased from 25 percent 
to 49 percent.
    The Postal Service has given consideration to these requests to 
increase the weight of nonprint attachments and enclosures. However, 
the Postal Service is mindful that Bound Printed Matter rates are 
intended for printed matter. This is not to say that a modest amount of 
nonprint attachments and enclosures should be prohibited, and indeed 
some nonprint matter has been permitted under current standards. The 
Postal Service is concerned that either of these higher ratios proposed 
by commenters would serve to cloud the distinction between bona fide 
Bound Printed Matter and other Package Services mail, such as Parcel 
Post, or Standard Mail. Therefore, neither of the suggested higher 
weight limits is adopted in this final rule.
    Of the comments supporting the proposed standards, five comments 
sought a specific ruling concerning ``binders'' as bona fide elements 
of Bound Printed Matter. These requests are beyond the scope of this 
rulemaking and are not addressed in this final rule.
    The remaining comment, although taking ``no position on the merits 
of the proposed change,'' suggested that the

[[Page 30065]]

proposal would expand the permissible attachments and enclosures beyond 
those contemplated in the Domestic Mail Classification Schedule (DMCS), 
and would be beyond the authority of the Postal Service to adopt. The 
Postal Service respectfully disagrees. Under DMCS 544.2, Bound Printed 
Matter may contain attachments and enclosures ``as specified by the 
Postal Service.'' The comment appears to suggest that this discretion 
is limited by the additional phrase ``and as described in subsections a 
and e of section 523.1,'' which concerns order forms with books and 
sound recordings. Under the reading apparently favored by the 
commenter, the permissible attachments and enclosures under DMCS 544.2 
would be limited to these order forms in accordance with standards 
prescribed by the Postal Service. In contrast, the Postal Service 
believes that the two parts of section 544.2 should be read 
independently. That is, the permissible attachments and enclosures 
include the order forms described in 523.1, and, in addition to that, 
any other attachment and enclosure specified by the Postal Service. 
Nevertheless, the Postal Service agrees with the commenter that the 
permissible attachments and enclosures should not be without limits. 
Indeed, as explained above, the Postal Service believes that the amount 
of nonprint attachments and enclosures should be relatively small in 
comparison to the qualifying Bound Printed Matter, and rejected 
requests that the ratio be increased beyond the standard proposed.
    After full consideration of the comments received and for the 
reasons discussed above, the Postal Service adopts, without revisions, 
the proposed changes in the Domestic Mail Manual, which is incorporated 
by reference in the Code of Federal Regulations (see 39 CFR part 111).

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, 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, 3626, 5001.


    2. Revise Domestic Mail Manual E712.1.2, as follows:

Domestic Mail Manual

* * * * *

E  ELIGIBILITY

* * * * *

E712  Bound Printed Matter

* * * * *
1.0  BASIC STANDARDS
* * * * *

1.2  Enclosures and Attachments

(Revise 1.2 to add new standards for attachments and enclosures as 
follows:)
    In addition to the basic standards in E710, BPM may have the 
following attachments and enclosures:
    a. Any printed matter mailable as Standard Mail.
    b. Nonprint attachments and enclosures. The combined weight of all 
nonprint attachments and enclosures in the mailpiece must be less than 
or equal to 25 percent of the weight of the Bound Printed Matter in the 
mailpiece. The individual cost of each nonprint attachment or enclosure 
must be less than or equal to the cost of a ``low cost'' item as 
defined in E670.5.11. In addition, the combined cost of all nonprint 
attachments and enclosures must not exceed two times the cost of a 
``low cost'' item as defined in E670.5.11.
* * * * *
    This change will be published in a future issue of the Domestic 
Mail Manual. An appropriate amendment to 39 CFR 111.3 to reflect these 
changes will be published.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 01-13973 Filed 6-4-01; 8:45 am]
BILLING CODE 7710-12-U