58946 Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Proposed Rules 

1Section 3691(a) explicitly acknowledges that the 

Postal Service may, from time to time, by regulation 

revise the modern service standards for marketdominant products established though this 

consultative process. Therefore, the service 

standards that ultimately emerge at the conclusion 

of this notice-and-comment rulemaking should be 

regarded as establishing a baseline for any 

subsequent service changes. The Postal Service 

recognizes that any such subsequent proposals for 

service changes that are substantially nationwide in 

scope could be subject to the requirement that they 

be submitted to the Postal Regulatory Commission 

for review in the form of a request for an advisory 

opinion under the terms of 39 U.S.C. 3661. 

2Single-Piece Parcel Post, Media Mail, Bound 

Printed Matter, and Library Mail are separate 

products under the terms of section 3621(a). The 

service standards for these products, historically, 

have been the same. For as long as that remains the 

case, and for purposes of this notice and the 

regulations proposed herein, these products are 

collectively referred to as Package Services Mail. 

3 Docket No. RM2007–1, United States Postal 

Service Submission of Initial Mail Classification 

Schedule in Response to Order No. 26, at 22 

(September 24, 2007). The Postal Service also 

proposed that, for a variety of reasons, inbound 

International Mail should be treated on an 

exceptional basis and not ‘‘classified’’ within the 

Mail Classification Schedule. Docket No. RM2007– 

1, Initial Comments of the United States Postal 

Service in Response to Order No. 26, at 13–24 

(September 24, 2007). Accordingly, the Postal 

Service is not proposing service standards for 

inbound International Mail. 

POSTAL SERVICE 

39 CFR Parts 121 and 122 

Modern Service Standards for MarketDominant Products 

AGENCY: Postal Service. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service proposes 

modern service standards for its marketdominant products. Section 301 of the 

Postal Accountability and Enhancement 

Act (PAEA) (codified at 39 U.S.C. 3691) 

requires the Postal Service, in 

consultation with the Postal Regulatory 

Commission (PRC), to establish by 

regulation a set of modern service 

standards for market-dominant 

products, no later than December 20, 

2007. 

DATES: Comments must be received on 

or before November 16, 2007. 

ADDRESSES: Mail written comments to 

Modern Service Standards for MarketDominant Products Comments, Post 

Office Box 23280, Washington, DC 

20026–3280. You may inspect and 

photocopy copies of all written 

comments between 9 a.m. and 4 p.m., 

Monday through Friday at the Postal 

Service headquarters library, 11th Floor 

North, 475 L’Enfant Plaza, SW., 

Washington, DC 20260–1540. 

FOR FURTHER INFORMATION CONTACT: 

Wanda Ayala 202–268–5380. 

SUPPLEMENTARY INFORMATION: After 

stating the requirements of the law, the 

remainder of this notice is divided into 

five sections. Section 1 recites the 

objectives that the Postal Service must 

satisfy and the factors that it must 

consider in establishing modern service 

standards, as mandated by the PAEA. 

The second section summarizes the 

customer outreach performed to 

ascertain customers’ expectations 

regarding modern service standards, and 

describes the Postal Service’s 

consultations with the PRC. The third 

section describes the Postal Service’s 

proposed modern market-dominant mail 

product service standards. Section 4 

describes how the proposed standards 

reflect consideration of the objectives 

and factors listed in the law. The final 

section gives notice of the specific 

service standard regulations the Postal 

Service is proposing to adopt and 

solicits public comment. 

Requirements of the Postal 

Accountability and Enhancement Act 

Section 301 of the Postal 

Accountability and Enhancement Act 

(codified at 39 U.S.C. 3691) requires the 

Postal Service, in consultation with the 

Postal Regulatory Commission, to 

establish a set of modern service 

standards for market-dominant products 

no later than December 20, 2007. 

Ordinarily, the Postal Service is 

required to request an advisory opinion 

from the Commission regarding 

proposed changes in service standards 

of at least a substantially nationwide 

nature under the terms of 39 U.S.C. 

3661. However, section 3691(a) sets 

forth an alternative process for the 

required establishment of baseline 

modern service standards by December 

20, 2007, stating that the Postal Service 

is to consult with the Commission.1

Section 3691(b)(1) directs the Postal 

Service to design modern service 

standards to achieve the following 

objectives: 

(A) To enhance the value of postal 

services to both senders and recipients. 

(B) To preserve regular and effective 

access to postal services in all 

communities, including those in rural 

areas or where Post Offices are not selfsustaining. 

(C) To reasonably assure Postal 

Service customers delivery reliability, 

speed, and frequency consistent with 

reasonable rates and best business 

practices. 

(D) To provide a system of objective 

external performance measurements for 

each market-dominant product as a 

basis for measurement of Postal Service 

performance. However, with the 

approval of the Commission, an internal 

measurement system may be 

implemented instead of an external 

measurement system. 

See 120 Stat. 3218. Subsection 3691(c) 

directs the Postal Service to take the 

following factors into account in 

establishing these standards: 

(1) The actual level of service that 

Postal Service customers receive under 

any service guidelines previously 

established by the Postal Service. 

(2) The degree of customer 

satisfaction with Postal Service 

performance in the acceptance, 

processing, and delivery of mail. 

(3) The needs of Postal Service 

customers, including those with 

physical impairments. 

(4) Mail volume and revenues 

projected for future years. 

(5) The projected growth in the 

number of addresses the Postal Service 

will be required to serve in future years. 

(6) The current and projected cost of 

serving Postal Service customers. 

(7) The effect of changes in 

technology, demographics, and 

population distribution on the efficient 

and reliable operation of the postal 

delivery system. 

(8) The policies of [Title 39, United 

States Code, as amended by the PAEA] 

and such other factors as the Postal 

Service determines appropriate. 

120 Stat. 3218–19. 

Section 1: General Background 

Information on Service Standards 

According to 39 U.S.C. 3621(a), as 

amended by the PAEA (120 Stat. 3200), 

the market-dominant products for 

which section 3691(a) requires the 

establishment of modern service 

standards in consultation with the 

Commission include the following 

domestic services: First-Class Mail

Letters and Sealed Parcels, First-Class 

Mail Cards, Periodicals, Standard 

MailTM, Single-Piece Parcel Post, 

Media Mail, Bound Printed Matter, 

Library Mail, and Special Services.2

Section 3621(a) also designates SinglePiece International Mail as a marketdominant product. The Postal Service 

proposes that outbound Single-Piece 

First-Class Mail International be 

included within the market dominant 

category.3

The Postal Service defines service 

standards as ‘‘[a] stated goal for service 

achievement for each mail class.’’ 

Publication 32, Glossary of Postal 

Terms, (May 1997, as updated with 

revisions through July 2007). This 

definition forms the basis for Postal 

Service statements and postal 

customers’ expectations concerning the 

number of days that it should take for 

the Postal Service to deliver a mailpiece 

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4The 930 destinating service areas include the 3- 

digit ZIP Code prefixes assigned to domestic Army/ 

Fleet Post Office (APO/FPO) gateway processing 

facilities through which mail originating from or 

destinating at United States overseas military 

installations enters and exits the Postal Service 

network. 

5Each 3-digit ZIP Code service area is further 

divided into 5-digit ZIP Code areas that are served 

by particular Post Offices. Each 5-digit zone is 

further subdivided into sectors and segments that 

are represented by the 4-digit suffixes that are 

elements of the ZIP+4 Codes to which each of the 

over 145 million domestic delivery points served by 

the United States Postal Service postal network are 

assigned. Irrespective of the 5-digit or ZIP+4TM

Codes assigned to particular addresses, service 

standards generally are established on the basis of 

3-digit ZIP Code prefixes, and apply to post offices 

and addresses in a given 3-digit ZIP Code area. 

6For a definition of Critical Entry Time, see 

Section 3. 

from its point of entry in the mailstream 

to its destination. 

The service standard for a mail 

product consists of two related 

elements: the day range and the 

business rules. The ‘‘day range’’ is the 

range of days within which all mail of 

a particular product type is expected to 

be delivered. For example, the current 

First-Class Mail service standard is often 

described as ranging ‘‘from one to three 

days’’ after acceptance. As implemented 

by the Postal Service, ‘‘business rules’’

determine the precise delivery day 

within the range that applies to a 

specific origin-destination pair within 

the postal mail processing network. 

Presently, the domestic postal mail 

processing network includes all 50 

states and the territories of Guam, 

Puerto Rico and the U.S. Virgin Islands. 

These states and territories are divided 

into service areas, and each service area 

is represented by a unique 3-digit ZIP 

Code prefix. Currently, the postal 

network is divided into 915 originating 

3-digit ZIP Code areas and 930 

destinating 3-digit ZIP Code areas.4

As a consequence, there currently are 

a total of approximately 851,000 3-digit 

ZIP Code origin-destination pair 

combinations in the Postal Service 

network. The different business rules for 

each mail product determine which of 

these origin-destination pairs are 

overnight, 2-day, 3-day, etc., for each 

product. As a result, for example, a 3- 

digit ZIP Code origin-destination pair 

with a 3-day First-Class Mail service 

standard can have an 8-day delivery 

expectation for Standard Mail.5

For purposes of counting delivery 

days, the day of entry is ‘‘day-zero,’’ if 

the mailpiece is accepted by the Postal 

Service before the posted ‘‘critical entry 

time’’ (CET) 6 for that day. Assume, for 

example, that the application of the 

current First-Class Mail business rules 

results in a 2-day standard from a 

particular origin to a particular 

destination. Then, a piece of First-Class 

Mail deposited in a collection box 

before the last pickup time posted on 

the collection box at origin on a Monday 

is expected to be delivered at the 

destination the following Wednesday, 

provided that Wednesday is not a 

holiday. 

Currently, the service standard 

business rules for each domestic mail 

product (First-Class Mail, Periodicals, 

Standard Mail, and Packages Services) 

vary on the basis of applicable statutory 

postal policies and such factors as: 

• The distance from the center of the 

origin mail processing facility s service 

area, as measured in great circle miles. 

• The relative degree of expedition or 

deferability intrinsic to the mail product 

in question. 

• Whether the mail product is subject 

only to surface, or both surface and air 

transportation. 

• The availability, speed, and relative 

reliability of available modes of 

transportation between specific nodes in 

the Postal Service network. 

• Whether an objectively determined 

significant business relationship’’ exists 

between a particular 3-digit ZIP Code 

origin-destination pair. 

All mail designated by the same 

product name (e.g., First-Class Mail, 

Periodicals, Standard Mail, or Package 

Services) receives the same particular 

service standard day to a given 3-digit 

ZIP Code origin-destination pair, 

irrespective of mailpiece shape or level 

of mailer presortation. Thus, within 

Standard Mail, the senders of cards and 

parcels currently expect to receive the 

same level of service that is provided to 

Standard Mail flats entered at the same 

origin and delivered to the same 

destination. 

Section 2: Customer Outreach and 

Consultations With the Postal 

Regulatory Commission 

The law requires that the Postal 

Service take customer satisfaction, the 

needs of customers, and the actual level 

of service that customers receive into 

account in the establishment of modern 

service standards. The law also requires 

the Postal Service to develop service 

standards in consultation with the PRC. 

Customer satisfaction, needs, and 

service have always been important to 

the Postal Service. Therefore, the Postal 

Service was able to use a combination 

of long-established methods, as well as 

efforts undertaken specifically because 

of the enactment of the PAEA, to reach 

out to customers. Methods included 

consultations with the Mailers’

Technical Advisory Committee (MTAC), 

review of the Postal Service’s Customer 

Satisfaction Measurement—Residential/ 

Business surveys (CSM), and the 

administration of a separate consumer 

and small business survey. Postal 

Service representatives also met with 

and solicited comments from mailers at 

the National Postal Forum, from postal 

unions and management associations, 

and from attendees at the Postal 

Service/Postal Regulatory Commission 

Summit on Meeting Customer Needs in 

a Changing Regulatory Environment. 

Additionally, the Postal Service 

reviewed the comments received by the 

Commission at its three public hearings 

(Kansas City, Missouri; Los Angeles, 

California; and Wilmington, Delaware) 

and in PRC Docket PI2007–1, Service 

Standards and Performance 

Measurement For Market-Dominant 

Products. 

The main themes that emerged from 

this outreach were that customers want 

standards that are reliable, consistent, 

realistic, and attainable, and that any 

proposed changes reflect sensitivity to 

the impact of increased postal costs on 

rates that they pay. The proposed 

service standards, described in Section 

3, seek to meet these goals by aligning 

standards with today’s operational and 

logistical realities, while continuing to 

differentiate among distinct products 

and minimize any adverse impact on 

postal costs. 

Each of the outreach methods is 

explained in greater detail below. 

1. MTAC. The Postmaster General’s 

Mailers’ Technical Advisory Committee 

(MTAC) is a venue for the Postal Service 

to share technical information with and 

to receive advice and recommendations 

from, mailers on matters concerning 

mail-related products and services. 

Membership in MTAC is comprised of 

mailer associations and other 

associations/organizations related to the 

mailing industry. The member 

associations/organizations reflect the 

mailing community in terms of classes 

and categories of mail used and include 

both large and small volume mailers 

and organizations with significant or 

unique mailing needs. MTAC has been 

in existence since 1965. 

In early February 2007, a special 

MTAC workgroup was formed to 

concentrate specifically on service 

standards and the requirements of the 

PAEA. The main workgroup consisted 

of nearly 200 participants, including 

representatives from the Postal Service, 

mail users, mail service providers, and 

observers from the PRC and the General 

Accountability Office. This workgroup 

subdivided into four subgroups, which 

focused on First-Class Mail, Periodicals, 

Standard Mail, and Package Services, 

respectively. 

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2. Customer Satisfaction 

Measurement (CSM)—Residential/ 

Business. For over a decade, the Postal 

Service has been conducting surveys to 

provide ongoing assessments of 

customer experiences with Postal 

Service products and services, to 

provide rating and diagnostic results for 

important customer issues, to identify 

opportunities for improvement, to 

promote positive change by linking 

management actions with customer 

satisfaction, and to provide operational 

and process-related information to the 

Postal Service. Residential measurement 

began in 1991, and business 

measurement was added in 1994. 

Surveys are redesigned every two or 

three years, with the survey and 

analysis conducted independently by 

The Gallup Organization and IBM 

Global Business Services, respectively. 

For residential customers, the Postal 

Service surveys, on a continuous basis, 

randomly selected households across 

the United States. Customers have the 

option of completing the survey online 

or in hard copy. Currently, the Postal 

Service receives completed survey 

questionnaires from about 250,000 

households per quarter. Responses 

provide direct feedback from customers 

on their experiences when they visit a 

post office, when they send and receive 

mail, and when they contact the Postal 

Service for information or to report a 

problem. When responding, customers 

are asked to reflect on the service they 

have received in the past 30 days. 

Specific to service standards and 

performance, residential customers rate 

the Postal Service on: time for local 

letters to be delivered, time for nonlocal 

letters to be delivered, overall Postal 

Service performance, and comparison to 

other delivery service companies. 

For business customers, the Postal 

Service conducts two types of surveys. 

One survey is mailed on an ongoing 

basis to randomly selected medium- and 

small-size business customers who have 

the option of responding online or by 

mail. Approximately 100,000 survey 

responses are received quarterly from 

these customers. The Postal Service also 

surveys its larger business customers via 

telephone or through an online response 

option to assess satisfaction with Postal 

Service products and services. Like 

residential customers, business 

customers are asked about their 

experiences with sending and receiving 

mail, but questions are tailored by 

segment to address the way these 

customers typically interact with the 

Postal Service. With regard to service 

standards and performance, business 

customers are asked more specifically, 

by type of mail, about their ratings of 

service. 

In addition to its ongoing CSM survey 

process, the Postal Service has 

periodically conducted one-time 

surveys to determine customer 

expectations of service. Such surveys 

have been conducted in 2001, 2006, and 

2007. The 2007 survey asked residential 

customers, and small to medium-size 

business customers, for their opinions 

on overall Postal Service performance, 

and about their expectations regarding 

delivery (both in their local delivery 

area and outside their local delivery 

area) for First-Class Mail, Parcel Post, 

Periodicals (monthly and weekly 

magazines and national, out-of-town, 

and local newspapers delivered by 

mail), advertising mail and flyers, 

Library Rate Mail, Media Mail, and 

Bound Printed Matter. Survey responses 

were received from approximately 6500 

residential and 2500 business customers 

who had recently responded to the 

Postal Services CSM survey, and then 

opted to participate in additional Postal 

Service research by providing an e-mail 

address. 

3. National Postal Forum Survey. The 

National Postal Forum was held on 

March 25–28, 2007, in Washington, DC. 

The forum is an annual conference that 

serves as an educational venue, trade 

show, and networking event for mailing 

industry professionals. At this forum, 

the Postal Service distributed a survey 

to a group of attendees. The survey 

asked respondents how closely they pay 

attention to service standards when 

planning mailings and what they 

thought the Postal Service should 

consider when re-evaluating its service 

standards. 

4. Briefings to Labor Unions and 

Management Associations. On July 17, 

2007, representatives from the Postal 

Service held a briefing on service 

standards to which representatives from 

all of its labor unions and management 

associations were invited. Issues 

discussed included service standard 

elements of the Postal Accountability 

and Enhancement Act and the 

implications for the Postal Service; the 

current service standards and the rules 

to create them; revenue protection; and, 

how to approach modernization. 

5. PRC Docket No. PI2007–1. On June 

13, 2007, the PRC established Docket 

No. PI2007–1, to obtain a broad 

spectrum of public opinion on service 

standards and service performance 

measurement issues. The Postal Service 

reviewed the comments received in this 

docket as it developed the proposed 

modern service standards reflected in 

this notice. 

6. PRC Field Hearings. On June 12, 

2007, the Commission announced that it 

would hold three public hearings as part 

of its development of regulations for a 

modern postal ratemaking system. The 

Commission invited different segments 

of the mailing community to testify at 

three public hearings on their vision for 

a new ratemaking system and their 

views on delivery service standards. 

These hearings were held in Kansas 

City, Missouri (June 22, 2007); Los 

Angeles, California (June 28, 2007); and 

Wilmington, Delaware (July 9, 2007). 

The Postal Service reviewed the 

comments made on delivery service 

standards and took them into account in 

developing its proposed modern service 

standards. 

7. Postal Service/Postal Regulatory 

Commission Summit Meeting on 

Meeting Customer Needs in a Changing 

Regulatory Environment. On March 13, 

2007, the Postal Service and the 

Commission met with mailers and other 

stakeholders to discuss various aspects 

of the recently enacted PAEA. 

Approximately three hundred people 

attended the summit. The summit 

included panel discussions on customer 

needs related to market-dominant and 

competitive products and services the 

PRC–USPS-designed regulatory 

framework, and service standards and 

measurements. 

Beginning in March 2007, the Postal 

Service initiated a series of regular 

informational briefings with the Postal 

Regulatory Commissioners and their 

technical staff to address service 

standard issues on an informal basis. 

Members of the Postal Service Executive 

Committee met with Commissioners 

and PRC staff monthly, beginning in 

May 2007, to discuss preliminary work 

performed by the Postal Service in 

developing modern service standards, 

measurement systems, methods for 

reporting data, and customer outreach. 

In September 2007, the Postal Service 

initiated formal consultations with the 

Commission for the purpose of 

developing modern service standard 

proposals for each market-dominant 

product. The consultations regarding 

service standards, which were 

concluded in October 2007, were very 

constructive. The Postal Service and the 

Commission found common ground on 

many issues and the Postal Service was 

able to incorporate valuable suggestions 

offered by the Commission. Equally 

productive meetings with the 

Commission regarding the development 

of external and/or internal service 

performance measurement systems 

under the terms of section 3691(b)(2) are 

ongoing. 

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Section 3: Proposed Modern Service 

Standards 

The Postal Service began the 

development of service standards for 

market-dominant products by 

examining the existing standards 

applicable to the matrix of nearly 

851,000 origin-destination 3-digit ZIP 

Code pairs in the Postal Service network 

for each mail product. For First-Class 

Mail, Periodicals, Standard Mail, 

Package Services, and Outbound SinglePiece First-Class Mail International, the 

delivery service day ranges were 

reviewed, along with the business rules 

that determine the precise number of 

delivery days for each 3-digit ZIP Code 

origin-destination pair. 

As it reviewed the survey data and 

other information regarding customer 

preferences described above in Section 

2, the Postal Service performed 

extensive computer modeling to 

determine how best to match its current 

mail processing and transportation 

network capabilities with customer 

expectations. An internal crossfunctional team was organized to define 

and map standardized mail processing 

and transportation flows for all marketdominant mail products. The resulting 

flows were benchmarked against 

existing network capabilities by 

utilizing internal mail processing and 

transportation data systems to ensure 

accuracy. Computer programs were then 

written to calculate the resulting daysto-deliver for all of the approximately 

851,000 3-digit ZIP Code origindestination pairs, separately for each 

product: First-Class Mail, Periodicals, 

Standard Mail, and Package Services. 

Numerous iterations of the model were 

run to test different service standard day 

ranges and business rules, and the 

various alternative outputs were 

carefully analyzed. As refined potential 

outcomes were developed, they became 

the subject of consultations with the 

Commission. 

The creation of new business rules 

was a key step in the modernization of 

service standards. Business rules define 

how the mail should move through the 

network and include precise facility-tofacility highway transportation distance 

measurements. For example, the 

business rules for surface products, such 

as Periodicals, Standard Mail, and 

Package Services, allow for shared 

product transportation, which will keep 

transportation costs down. Where 

appropriate, the business rules also 

recognize the deferability of Standard 

Mail. The proposed service standards 

maintain the policy of requiring the 

same service level for each mail class, 

irrespective of mailpiece shape. And, for 

the first time, the standards reflect 

consideration of the logistical 

challenges associated with providing 

service to, from, and within the states of 

Alaska and Hawaii, as well as the 

territories of Guam, Puerto Rico, and the 

United States Virgin Islands. 

For special services products, each 

service was examined to determine 

which services logically could have 

standards. Then, standards for those 

services were proposed. As discussed 

further below, for certain special 

services, the establishment of a 

universal service standard would be 

unnecessary, redundant, or infeasible. 

Subsection A, below, highlights some 

of the key features of the proposed 

modern service standards for marketdominant mail products. Subsection B 

describes the modern service standards 

proposed for domestic special services. 

In some instances, the business rules for 

the proposed modern service standards 

refer to certain postal terminology and 

types of postal mail processing facilities. 

For purposes of clarification, the 

following brief definitions and 

descriptions are provided: 

An Area Distribution Center (ADC) is 

a mechanized or automated Postal 

Service mail processing facility that 

receives and distributes mail destined 

for specific 3-digit ZIP Codes within its 

service area under a managed mail 

program. The program identifies, on 

first handling, First-Class Mail that 

cannot make next-day delivery owing to 

destination distance and eliminates a 

secondary sorting for this mail, so that 

it can be airlifted to the destination 

plant for processing during non-rush 

hours the next day. 

An Automated Area Distribution 

Center (AADC) is a Postal Service mail 

distribution center that uses multiline 

optical character readers, barcode 

sorters, and other equipment designed 

for processing automation-compatible 

mail. 

A Bulk Mail Center (BMC) is a highly 

mechanized Postal Service mail 

processing plant that distributes 

Package Services mail in piece and bulk 

form, as well as Standard Mail parcels, 

and Standard Mail letters and flats in 

bulk form. An Auxiliary Service Facility 

(ASF) is a mechanized facility, usually 

part of a general mail facility, that has 

its own service area and serves as a 

satellite processing hub for a particular 

BMC. 

A Critical Entry Time (CET) is the 

latest time a particular type of mail can 

be accepted by the Postal Service in 

order for it to undergo the processing 

and/or dispatch to downstream 

operations necessary for delivery within 

the service standard for that mail. 

A Destination Delivery Unit (DDU) is 

the downstream Postal Service facility 

at which mail is dispatched to carriers 

for delivery on their routes or at which 

it is sorted to a Post Office box. 

Destination entry refers to the 

qualified drop-shipment of bulk 

quantities of mail at a designated postal 

facility, either a Destination Bulk Mail 

Center (DBMC), Destination Area 

Distribution Center (DADC), Destination 

Sectional Center Facility (SCF), or 

Destination Delivery Unit (DDU). 

An International Service Center (ISC) 

is a Postal Service mail processing 

facility that, among other things, 

distributes and dispatches outbound 

International Mail originating from 

designated 3-digit ZIP Code areas in the 

United States or its territories. A 

functionally equivalent International 

Mail Processing Unit (IMPU) may be 

established to serve a smaller range of 

origin 3-digit ZIP Code areas. 

The Periodicals Origin Split and FirstClass Mail Mixed ADC/AADC DMM 

Label List (L201) is a 3-digit origin 

sortation scheme utilized by Postal 

Service mail processing plants and 

referenced in the Mailing Standards of 

the United States Postal Service, 

Domestic Mail Manual. Periodicals 

mailers use the scheme to create 

‘‘origin’’ mixed ADC bundles, sacks, and 

tubs of mail. Mixed ADC volume is 

separated into two groups. Pieces and 

bundles destinating within the 3-digit 

ZIP Code ranges (surface destinations 

for First-Class Mail) listed in L201 for 

the origin mail processing plant serving 

the customer’s mailing location are 

presorted separately, and can then be 

combined and processed with FirstClass Mail at the origin plant. This 

allows economies of scale to be realized 

in mail processing, thereby both 

maintaining and increasing Postal 

Service network efficiency. 

A Sectional Center Facility (SCF) is a 

Postal Service facility that serves as the 

processing and distribution center/ 

facility (P&DC/F) for Post Offices in a 

designated geographic area, as defined 

by the first three digits of the ZIP Codes 

of those offices. Some SCFs serve 

multiple 3-digit ZIP Code areas. SCF 

turnaround mail has its originating and 

destinating processing occur at the same 

Sectional Center Facility 

A. Service Standards for First-Class 

Mail, Periodicals, Standard Mail, 

Package Services, and Single-Piece 

First-Class Mail International 

Current mail product service 

standards were originally designed to 

reflect a general end-to-end mailflow 

through the Postal Service network. 

However, the proliferation of 

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58950 Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Proposed Rules 

destination entry rate discounts in 

Standard Mail, Periodicals, and Package 

Services has provided incentives for 

significant mailer presortation and 

containerized entry deeper into the 

network. Today, approximately 75 

percent of all Standard Mail and 70 

percent of all Periodicals Mail enters the 

Postal Service network as destination 

entry mail, bypassing significant 

portions of the postal processing and 

transportation network. Over time, the 

network has adjusted to accommodate 

the many methods of mailer 

worksharing and the varying degrees of 

destination entry. Both the Postal 

Service and Postal Service customers 

realize that modern service standards 

need to reflect destination entry, as well 

as end-to-end mail flows. 

To develop modern service standards, 

the Postal Service began by examining 

data generated by the External FirstClass (EXFC) measurement system for 

single-piece First-Class Mail, by the 

International Mail Measurement System 

for outbound Single-Piece First-Class 

Mail International, and by its Product 

Tracking System for Single-Piece Parcel 

Post, Media Mail, Bound Printed Matter, 

and Library Mail. In the absence of 

systems for the measurement of 

commercial First-Class Mail, 

Periodicals, and Standard Mail service 

performance, the Postal Service 

examined internal diagnostic data, as 

well as similar data provided by specific 

mailers in relation to delivery 

performance they have experienced. 

Such data are useful as potential 

indicators of service performance and in 

evaluating Postal Service network 

capability. In addition, the Postal 

Service designed an internal test which 

covered over 300,000 random pieces of 

live First-Class Mail, Periodicals, and 

Standard Mail, with different 

preparation levels, to track how mail 

flows through its network, and to help 

identify potential operational and 

logistical barriers to the provision of 

reliable and consistent service. 

Service standards and the underlying 

business rules are now being adjusted to 

give appropriate consideration to 

contemporary mail processing network 

capabilities and mail entry practices. 

Business rules for the end-to-end 

product flow have been developed to 

accurately depict the need to 

consolidate and share both processing 

and transportation resources in order to 

keep the Postal Service network 

efficient and cost effective. For mail 

products with destination entry rate 

discounts, the Postal Service is 

proposing a new destination entry 

service standard dimension to its 

current origin-destination 3-digit ZIP 

Code matrices. Destination entry service 

standards have been integrated with 

end-to-end service standards. This 

results in more realistic and accurate 

delivery expectations for all categories 

of mailers. 

For mail that both originates and 

destinates within the contiguous 48 

states, no changes are proposed in the 

1- to 3-day service standard range for 

First-Class Mail or the 3- to 10-day range 

for Standard Mail. The outer limit of the 

Periodicals service standard range has 

been expanded by 2 days, from 7 to 9 

days. This expansion more realistically 

reflects network capabilities, allows for 

efficient and economical transportation 

routing, and will provide customers 

with more reliable and consistent 

service. The outer limit of the service 

standard day range for Package Services 

is narrowed by 1 day, from 9 to 8 days, 

for the same reasons. These day ranges 

are summarized in the table below. 

*The table above reflects service 

standard day ranges for the 48 

contiguous states. See the table below 

for the proposed end-to-end service 

standard day ranges for the states of 

Alaska and Hawaii, and the territories of 

Guam, Puerto Rico, and the U.S. Virgin 

Islands. 


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The service standards for mail to and 

from addresses in the states of Alaska 

and Hawaii and the territories of Guam, 

Puerto Rico, and the U.S. Virgin Islands 

have been designed using the same mail 

processing concepts. However, 

transporting mail to and from (and 

sometimes within) these locations 

presents significant challenges, many of 

which the Postal Service cannot control. 

For mail products that rely exclusively 

on interstate or interterritorial surface 

transportation, for example, the 

proposed service standard day ranges 

reflect transportation availability and 

the number of days that it is expected 

for a ship to travel from port to port 

between origin and destination. The 

extended day ranges reflect the limited 

availability of economical surface 

transportation options and the logistical 

challenges present. 

The modern service standard day 

ranges for mail to and/or from these 

states and territories is depicted above. 

The lower end of the day range 

illustrates the service expectation for 

local mail, while the higher end of the 

day range represents the expectation for 

mail traveling between the most extreme 

origin-destination pairs, for example: 

between Alaska and the U.S. Virgin 

Islands (USVI), between Puerto Rico and 

Hawaii, or between Guam and all points 

other than Hawaii. Additional 

transportation time is allotted on a caseby-case basis to reflect the logistics 

required to serve these areas. 

In addition to the end-to-end service 

standards, a separate matrix has been 

developed to depict the service 

standards for those market-dominant 

mail products that include destination 

entry mail: Periodicals, Standard Mail, 

and Package Services. For the 

contiguous 48 states, these destination 

entry standards are summarized in the 

table below. 


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The destination entry standards are 

summarized in the table below for the 

states of Alaska and Hawaii and the 

territories of Guam, Puerto Rico, and the 

U.S. Virgin Islands. 

The service standard origin or 

destination for mail to or from the states 

of Alaska and Hawaii and Guam, Puerto 

Rico, and the U.S. Virgin Islands, is 

defined to/from the 3-digit ZIP Code 

area in which the interstate/ 

interterritorial gateway mail processing 

facility is located: Anchorage SCF 

(Alaska); San Juan SCF (Puerto Rico and 

USVI); and Honolulu SCF (Hawaii and 

Guam). This is necessary because 

transportation beyond these entry/exit 

points becomes increasingly 

challenging, increasing the variability in 

service performance achieved. For 

example, in the state of Alaska, 

transportation of First-Class Mail letters 

on a particular flight to a remote area 

may be deferred in favor of Package 

Services Mail containing groceries or 

medicine, where transportation space is 

insufficient to carry both products. 

The proposed service standards for 

these states and territories also reflect 

local operating plans developed in 


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response to different logistical 

challenges that affect each state or 

territory. For instance, factors in the 

state of Alaska that contribute to the 

need for longer, more realistic, service 

standard day ranges include: the 

reliance on infrequently scheduled 

cargo ships to and from ports in the 

contiguous 48 states, the absence of 

intrastate roads to many remote 

locations, the infrequency of available 

surface transportation, the extraordinary 

geographical reach of the 3-digit ZIP 

Code service areas in the state, and the 

necessary reliance on irregular air and 

hovercraft transportation in lieu of 

standard commercial trucking and air 

service between many locations. 

Extraterritorial mail for Guam is routed 

through Hawaii; extraterritorial mail for 

the U.S. Virgin Islands is routed through 

Puerto Rico. The time-in-transit and the 

limited availability of cargo ship 

capacity between the contiguous 48 

states and Hawaii and Puerto Rico 

significantly affect end-to-end transit 

times for mail dependent on surface 

transportation, as does the availability 

of interisland shipping within Hawaii. 

The service standard day ranges 

depicted in the tables above must be 

viewed in the context of the estimated 

impact. Based on FY 2006 domestic 

volumes, an estimated 89.7 percent of 

total market-dominant mail volume will 

have a service standard in the 1- to 5- 

day range, 10.1 percent will have a 

service standard in the 6- to 10-day 

range, and 0.1 percent will have a 

service standard greater than 10 days. 

Postal Service customers interested in 

determining what the service standard 

would be for a mail product from any 

particular 3-digit ZIP Code origin to any 

3-digit ZIP Code destination, assuming 

the adoption of the service standard day 

ranges and business rules proposed 

herein, may examine a file which can be 

accessed at the following Internet link: 

http://ribbs.usps.gov/svcstandardsprop. 

By product (First-Class Mail, 

Periodicals, Standard Mail, and Package 

Services) and by origin 3-digit ZIP Code 

service area, the file provides a list of all 

destination 3-digit ZIP Code service 

areas for which the service standard 

would, for example, be 1, 2, 3, or 4, etc., 

days. In addition, the file contains the 

applicable service for each destination 

entry product from point of entry to 

destination 3-digit ZIP Code. 

Whether mail originates or destinates 

on one of the islands of Hawaii or on 

Long Island in New York, modern 

service standards should reflect rational 

operating plans in light of available, 

reasonably economical, and efficient 

logistical options. In that way, 

customers can have more realistic 

expectations and more consistent and 

reliable service. 

The following is a summary of the 

proposed modern service standard day 

ranges and underlying business rules for 

market-dominant mail. It bears 

repeating that, where the application of 

a particular business rule for a 

particular mail product indicates a 

range of possible delivery days, only a 

single day within that range applies to 

a particular 3-digit ZIP Code origindestination pair. 

1. First-Class Mail 

Domestic First-Class Mail is sealed 

against inspection and typically consists 

of such matter as bills, statements of 

account, solicitations, personal 

correspondence and greetings, or other 

personal information that is wholly or 

partially handwritten or typewritten. 

The proposed modern First-Class Mail 

service standard day range appears 

below. First-Class Mail utilizes both air 

and surface transportation. The 

expected delivery day after the Critical 

Entry Time for any origin-destination 3- 

digit ZIP Code pair depends on mail 

processing operating plans, the distance 

between origin and destination, and 

transportation times between processing 

plants. 


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An estimated 99.7 percent of FirstClass Mail will have a service standard 

in the 1- to 3-day range, and 0.3 percent 

will have a 4- to 5-day service standard. 

2. Periodicals 

This domestic mail typically consists 

of qualified newspapers, magazines, and 

other similar publications. The 

proposed modern Periodicals service 

standard day range appears below. 

Periodicals Mail utilizes surface 

transportation. The expected delivery 

day after the Critical Entry Time for any 

origin-destination 3-digit ZIP Code pair 

depends on the level of destination 

entry, mail processing operating plans, 

distance between origin and destination, 

and transportation times between 

processing plants. 


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An estimated 92.4 percent of 

Periodicals will have a service standard 

in the 1- to 4-day range; 7.2 percent will 

have a service standard in the 5- to 9- 

day range; and 0.4 percent will have a 

service standard greater than 9 days. 

3. Standard Mail 

Any mailable matter weighing less 

than 16 ounces may be mailed 

domestically as Standard Mail (except 

matter that is required to be mailed as 

First-Class Mail or copies of a 

publication that is required to be 

entered as Periodicals Mail). The 

proposed modern Standard Mail service 

standard day range appears below. 

Standard Mail utilizes surface 

transportation. The expected delivery 

day after the Critical Entry Time for any 

origin-destination 3-digit ZIP Code pair 

depends on the level of destination 

entry, mail processing operating plans, 

distance between origin and destination, 

transportation times between processing 

plants, and consideration of the 

deferrable nature of the product. The 

proposed business rules incorporate 

determinations defining specifically 

where in the mail flow for Standard 

Mail the product may be deferred for up 

to one day. For origin-entry mail, this 

occurs at the Postal Service mail 

processing facility designated as the 

origin consolidation site; for 

destination-entry mail, this occurs at the 

destination delivery unit. 


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An estimated 79.6 percent of Standard 

Mail will have a service standard in the 

2- to 5-day range, 20.2 percent will have 

a service standard in the 6- to 10-day 

range, and 0.2 percent will have a 

service standard greater than 10 days. 

4. Package Services 

Any domestic mailable matter may be 

entered as Package Services mail, except 

for matter required to be entered as 

First-Class Mail, Periodicals, or 

Standard Mail, as specified by the Postal 

Service). The proposed modern Package 

Services (Single-Piece Parcel Post, 

Media Mail, Bound Printed Matter and 

Library Mail) service standard day range 

appears below. Package Services Mail 

utilizes surface transportation. The 

expected delivery day after the Critical 

Entry Time for any origin-destination 3- 

digit ZIP Code pair depends on the level 

of destination entry, mail processing 

operating plans, Bulk Mail Center/ 

Auxiliary Service Facility (BMC/ASF) 

processing relationships, distance 

between origin and destination, and 

inter-BMC/ASF transportation times. 


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7PRC Docket No. RM2007–1, United States Postal 

Service Submission of Initial Mail Classification 

Schedule in Response to Order No. 26, at 22 

(September 24, 2007). 

An estimated 70.6 percent of Package 

Services mail will have a service 

standard in the 1- to 4-day range, 29.1 

percent will have a service standard in 

the 5- to 8-day range, and 0.3 percent 

will have a service standard greater than 

8 days. 

5. Outbound Single-Piece First-Class 

Mail International Letters and Flats 

Outbound Single-Piece First-Class 

Mail International has been defined as 

a separate product by the Postal Service 

in its proposed Mail Classification 

Schedule.7 The proposed service 

standard day range for outbound SinglePiece First-Class Mail International 

letters and flats is equivalent to the 

service standard for domestic First-Class 

Mail from the same origin 3-digit ZIP 

Code to the 3-digit ZIP Code area in 

which that origin’s designated 

International Service Center or 

International Mail Processing Unit is 

located. 

B. Domestic Special Services 

1. Summary of Services 

There are two categories of domestic 

special services: ancillary, and standalone. 

Ancillary special services are 

purchased for a fee in addition to the 

postage applicable to First-Class Mail, 

Periodicals, Standard Mail, Single-Piece 

Parcel Post, Bound Printed Matter, 

Library Mail, or Media Mail. These 

optional, ancillary special services are 

varied in nature. Some may be 

purchased only for specific mail 

products or mailpiece shapes. The 

following is a summary of the ancillary 

services: 

• Address Correction Service 

involves the transmission of corrected 

address information to senders, when 

recipients to whom they have sent a 

specific mailpiece provide a forwarding 

address to the Postal Service. 

Information is provided either through 

automated or hardcopy notification, 

depending on the type of service 

requested. 

• Business Reply Mail, Merchandise 

Return, and Bulk Parcel Return are 

alternate postage payment methods 

established for bulk mail recipients. 

Postage is paid through a postal account 

funded by the recipient for pieces that 

are mailed without postage fixed. 

Return pieces may be First-Class Mail or 

Package Services, as allowed for those 

services. Shipper Paid Forwarding is an 

alternate postage payment method for 

bulk mailers who establish accounts to 

cover postage, when parcels directed to 

addressees specified by the shipper 


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need to be forwarded to different 

addresses designated by the recipients. 

Fees in addition to postage are paid for 

these various accounting related 

services. 

• Certified Mail serviceTM provides 

the sender a mailing receipt and access 

to electronic information regarding the 

delivery status of a mailpiece. 

• A Certificate of Mailing provides a 

receipt to the sender as evidence that a 

mailpiece was accepted by the Postal 

Service. 

• Collect on Delivery involves postal 

collection of payment for merchandise 

ordered by the recipient, and 

transmission of the recipient s payment 

to the sender. 

• Delivery ConfirmationTM service 

provides the sender access to electronic 

information regarding the delivery 

status of a mailpiece. 

• Insurance services provide senders 

indemnity in the event of loss or 

damage to the contents of mailpieces. 

• Parcel Airlift Service provides for 

air transportation of Standard Mail 

parcels on a space available basis to or 

from U.S. military Post Offices outside 

the contiguous 48 states. 

• Registered Mail service provides 

added security for a mailpiece from 

acceptance to delivery, and indemnity 

in case of loss or damage in transit. 

• Return Receipt service provides the 

sender with evidence that a mailpiece 

has been received at the delivery 

address, including the original or copy 

of the recipient s signature. The receipt 

is either in the form of a First-Class Mail 

card returned to the sender or 

electronically transmitted information. 

• Restricted Delivery service permits 

the sender to direct that a mailpiece be 

delivered to a particular person at the 

delivery address (or that person’s 

designated agent for the receipt of mail). 

• Signature ConfirmationTM service 

provides delivery status information, 

plus the name and signature of the 

recipient who signed for the piece upon 

delivery. 

• Special Handling provides 

preferential handling to the extent 

practicable in dispatch and 

transportation of First-Class Mail and 

Package Services. 

• Stamped Envelopes, Stationery and 

Cards are articles that can serve as 

philatelic items or be used as postagepaid mailpieces. 

A principal feature of a number of 

ancillary special services is the 

electronic provision of information by 

the Postal Service to the sender 

regarding the status of a particular 

mailpiece. That information may consist 

of confirmation that delivery was either 

attempted or completed, a copy of the 

recipient’s signature, or information on 

address corrections of applicable 

mailpieces. 

For a number of these ancillary 

services, delivery-related information is 

generated by Postal Service scanning of 

mailpieces at delivery units or during 

carrier delivery. Before the completion 

of daily work shifts, Postal Service 

delivery personnel dock their portable 

hand-held scanners, so that delivery 

information pertinent to each scanned 

mailpiece can be uploaded and 

transmitted to appropriate Postal 

Service data systems. New scanners 

currently being deployed allow for 

signatures to be scanned at the time of 

delivery and transmitted with the 

delivery information. Automated 

address correction of applicable 

mailpieces is performed passively by 

certain automated Postal Service mail 

sortation equipment that then transmits 

information to Postal Service systems. 

Information from these various Postal 

Service data systems is then made 

available to the purchaser of the special 

service. 

In contrast to these ancillary services, 

stand-alone special services are not 

contingent upon the sending or receipt 

of a particular mailpiece: 

• Address List Services are available 

to mailers seeking correction of the 

addresses or ZIP Codes on their mailing 

lists, or the sequencing of their 

addresses. The corrected addresses are 

then used by mailers to create and send 

mail. 

• Caller Service provides an 

alternative means of receiving properly 

addressed mail at a postal facility call 

window or loading dock, at times 

arranged between the recipient and the 

postal facility. 

• Change of Address Credit Card 

Authentication is a service through 

which a Change of Address notice 

submitted via the Internet or by 

telephone is authenticated by reference 

to the credit card number provided by 

the requester. 

• Confirm is a subscription service 

that enables customers who apply the 

appropriate barcode to their mail to 

receive information concerning passive 

scans of that mail captured by 

automated postal mail sortation 

equipment while the mail is in transit 

between acceptance and delivery. 

• Money Orders are financial 

instruments that can be used, 

independently of whether they are 

mailed, to transfer monetary funds 

between parties. 

• Post Office Box service provides a 

customer with a locked postal 

receptacle for the receipt of mail as an 

alternative to delivery at the recipient s 

street address. 

Many mail products, as well as 

ancillary and stand-alone special 

services, are purchased at Post Office 

retail windows. As described above, 

some special services are completed 

during the course of the window 

transaction. However, retail window 

transactions do not constitute marketdominant special services within the 

meaning of subsection 3621(a)(9) for 

which service standards must be 

established under section 3691. 

Accordingly, the Postal Service 

proposes no service standards in 

relation to window service transactions 

during which mail products or special 

services can be purchased. 

2. Proposed Service Standards for 

Domestic Special Services 

The table below, which summarizes 

the modern service standards proposed 

for various special services, is followed 

by a discussion of each. 

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a. Address List Services 

The Postal Service currently has a 

standard operating procedure for 

completing customer requests for 

Election Board Address Changes, 

Corrections and ZIP Coding of Lists, and 

Sequencing of Address Cards. The 

Postal Service proposes making this 

standard operating procedure the 

modern service standard for these 

services. This standard would require 

that, except for the period between 

November 16 and January 1, the Postal 

Service return the corrected addresses 

within 15 workdays. The exclusion of 

the November 16 to January 1 time 

period is due to the impact of the surge 

of holiday mail volume on Postal 

Service personnel ordinarily responsible 

for fulfilling these requests within the 

15-workday period. 

b. Information Services for Ancillary 

and Stand-Alone Services 

A critical element of the various 

mailpiece delivery information services 

and Confirm is the timely provision of 

the expected information. Accordingly, 

modern service standards will include 

an objective expectation of availability 

of delivery scan information for the 

following ancillary special services 

products: Delivery Confirmation, 

Signature Confirmation, Certified Mail, 

Registered Mail, electronic Return 

Receipt, and Collect on Delivery. For 

Confirm, the modern service standard 

will be an objective expectation of 

availability of Confirm scan information 

obtained from mailpieces. For Address 

Correction services provided 

electronically, the modern service 

standard will be an objective 

expectation for availability of address 

correction information obtained in 

relation to specific mailpieces from the 

customer’s mailing. For these special 

services, the Postal Service proposes 

that delivery information, Confirm 

scans, or address correction 

information, as appropriate, be 

accessible online to the sender within 

24 hours of the time-stamp of the scan. 

The Postal Service emphasizes that the 

proposed 24-hour standard is not 

intended to abrogate current 

arrangements in individual Confirm 

Service Agreements regarding the 

frequency of batching, transmission, or 

earlier availability of such data. 

c. Insurance Claims Processing 

A vital element of postal insurance is 

the timeliness of the Postal Service’s 

resolution of indemnity claims filed by 

customers. Accordingly, as a modern 

service standard, the Postal Service 

proposes that a decision should be 

transmitted to the claimant no later than 

30 days after the date on which the 

Postal Service has received all 

information from the claimant necessary 

for resolution of the claim. 

d. Post Office Box Service 

An essential element of Post Office 

Box service is the timely availability of 

mail by the posted ‘‘uptime.’’ The 

‘‘uptime’’ is the time of day by which 

customers can expect to collect from 

their Post Office Box the mail that has 

been received for delivery that day. On 

the basis of local mail processing plans 


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and standard operating procedures, each 

Post Office Box section is required to 

establish and publicly post its standard 

‘‘uptime’’ for each delivery day. 

Accordingly, the Postal Service 

proposes that the modern service 

standard for Post Office Box service be 

mail availability by the posted daily 

‘‘uptime.’’

3. Special Services Products for Which 

No Independent Service Standards Are 

Being Proposed 

As explained below, there are certain 

special services for which the 

establishment of a universal service 

standard would be unnecessary, 

redundant or infeasible. Accordingly, 

the Postal Service interprets subsection 

3691(a) as not requiring the 

establishment of service standards for 

the following special services, based 

upon their present characteristics. 

a. Address Correction Service 

Mailers seeking to maintain up-todate mailing lists can purchase Address 

Correction Service, in order to receive 

updated forwarding address information 

submitted to the Postal Service by 

addressees. Unlike delivery scan data 

that mailers request at acceptance and 

expect to receive with every delivery, 

ACS data are expected by the sender 

only for those mailpieces which require 

the Postal Service to use its mail 

forwarding address database to deliver 

the mailpiece, and then transmit the 

new delivery address to the sender. 

Manual ACS information is batched, 

and the frequency with which it is 

transmitted to the purchasers of ACS 

varies on the methods employed, as 

well as specific arrangements between 

the Postal Service and particular 

customers. Accordingly, unlike delivery 

scan data, there is no one standard time 

by which all ACS subscribers expect the 

requested data to be available. 

Additionally, there is no one availability 

standard that applies to all ACS 

subscribers served by the same Post 

Office. For these reasons, no service 

standard is proposed. 

b. Alternate Postage Payment Methods 

Business Reply Mail, Merchandise 

Return, and Bulk Parcel Return are 

alternate postage payment methods 

established for bulk mail recipients. 

Shipper Paid Forwarding is an alternate 

postage payment method for bulk 

mailers. Mail subject to these alternate 

postage payment methods has the same 

delivery service standards for the 

applicable mail product (e.g., First-Class 

Mail or Single-Piece Parcel Post) as 

would any other mailpiece from the 

same point of entry, forwarding, or 

return to destination. Accordingly, there 

is no justification for establishing 

independent service standards for the 

reply, returned, or forwarded portions of 

the respective mailstreams through 

which such pieces flow. 

c. Caller Service 

Caller Service provides a means for 

(usually high volume) mail recipients to 

receive their mail at a postal retail 

window or loading dock. From origin to 

delivery availability, the mail picked up 

by the customer is subject to the 

standards for each class. 

Daily Caller Service pickup times are 

arranged between the delivery office 

and the mail recipient. These pickup 

times may be pre-arranged or may be on 

an ‘‘on-call’’ basis. They often vary from 

posted Post Office Box section 

‘‘uptimes’’ and many Caller Service 

customers arrange for multiple pickups 

on a given day. Thus, in contrast to Post 

Office Box service, there is no one 

posted daily ‘‘uptime’’ standard by 

which all Caller Service, either system 

wide or at a particular Post Office, is 

offered. Accordingly, it is infeasible to 

establish a service standard for Caller 

Service pickup. 

d. Certificate of Mailing 

A Certificate of Mailing is provided to 

the sender by the Postal Service as an 

intrinsic element of the acceptance of 

the mailpiece for which it was 

purchased. The purchase of the 

certificate is ancillary to sending a FirstClass Mail letter or Single-Piece Parcel 

Post package, for example, and does not 

affect the delivery service standards 

otherwise applicable to those pieces. 

Provision of the certificate at the time of 

mailing is a part of the acceptance of the 

mailpiece for which the certificate is 

purchased and completes the special 

service. Accordingly, the Postal Service 

sees no means or need for a standard 

measuring the timely completion of this 

special service. 

e. Change of Address Credit Card 

Authentication 

Change of Address Authentication 

service provides a customer with a 

means of having the Postal Service 

verify their address using standard 

Address Verification Service (AVS), by 

reference to a credit card number the 

customer provides when they submit a 

Change of Address request via 

telephone or the Internet. This 

authentication service is an alternative 

to the customer completing a hard-copy 

Change of Address request form. The 

customer pays a fee for the credit card 

authentication associated with the 

telephone or Internet Change of Address 

request, not for the subsequent 

processing of that request. The 

authentication service is provided and 

completed at the time that the credit 

card is validated and the fee is debited. 

The Postal Service does not consider it 

necessary or feasible to establish an 

objective standard for the timely 

completion of the authentication which 

takes place during a telephone or 

Internet transaction. 

f. Money Orders 

As with Stamped Cards and 

Stationery, and entirely at the option of 

the purchaser, Postal Money Orders may 

be enclosed in, for example, First-Class 

Mail pieces. Such enclosures do not 

affect the application of the First-Class 

Mail service standards for such mail. 

Once a Postal Money Order is 

purchased, the Postal Service does not 

necessarily have anything further to do. 

For these reasons, the Postal Service 

concludes that there is no mandate in 

section 3691 to establish service 

standards for Postal Money Orders. 

g. Return Receipt (Hard-Copy) 

After delivery of the mailpiece to 

which it was affixed, a hard-copy 

Return Receipt card is returned by the 

Postal Service to its purchaser via FirstClass Mail. The First-Class Mail service 

standard for the 3-digit ZIP Code pair in 

question (from destination back to 

origin) governs the return transit. 

Accordingly, no independent service 

standards should be developed for the 

Return Receipt portion of the First-Class 

Mail stream. 

h. Special Handling, Restricted 

Delivery, and Parcel Airlift 

A critical element of Parcel Airlift 

Service, Restricted Delivery, and Special 

Handling is that each product is 

purchased subject to the explicit 

understanding that the requested 

preferential handling, transportation 

upgrade, or delivery restriction is 

subject to availability. At the time when 

these services are purchased, it cannot 

be known whether the processing or 

transportation upgrade can be 

accommodated, or whether some 

delivery policy exception or limitation 

applicable to the delivery address 

overrides the requested delivery 

restriction. Accordingly, the 

establishment of service standards for 

these conditional service offerings is 

unwarranted. 

i. Stamped Envelopes, Cards, and 

Stationery 

When used, for example, as FirstClass Mail pieces or enclosures, 

Stamped Envelopes, Cards, and 

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8An ‘‘external’’ service performance 

measurement system would be one operated by a 

non-Postal Service entity; an ‘‘internal’’ system 

would be one operated by the Postal Service. Under 

the terms of subsection 3691(b)(2), with the 

approval of the Commission, the Postal Service may 

employ internal systems. 

Stationery are subject to the service 

standards that apply to other First-Class 

Mail pieces. Accordingly, no 

independent service standards should 

be developed for these products. 

Section 4: The Proposed Modern 

Service Standards Reflect 

Consideration of Relevant Statutory 

Objectives and Factors 

A. The Statutory Objectives 

As indicated above, subsection 

3691(b)(1) requires the Postal Service to 

achieve certain specified objectives in 

establishing its modern service 

standards. At the same time, subsection 

3691(c) requires that the modern service 

standards reflect consideration of a list 

of enumerated factors. The proposed 

service standards reflect limitations 

inherent in network capabilities, the 

mail processing environment, and 

transportation. As such, they reflect 

customer interest in standards that 

establish reasonable expectations for 

when mail should be delivered. Service 

standard day ranges based on great 

circle mile zone bands are being set 

aside in favor of ranges based on precise 

facility-to-facility highway 

transportation distance measurements. 

Destination entry service standards have 

been created to recognize the impact of 

major advances in mailer worksharing 

on Postal Service mail processing and 

delivery capability. More realistic day 

ranges have also been established for 

mail originating from, or destinating to, 

the states of Alaska and Hawaii and the 

territories of Guam, Puerto Rico, and the 

U.S. Virgin Islands. These day ranges 

more accurately reflect the significant 

logistical challenges and limited 

availability of economical transportation 

options that affect service for these 

states and territories. 

Below, the Postal Service explains 

how the modern service standards 

described above and its plans for service 

performance measurement to achieve 

the objectives of subsection 3691(b). 

(A)—To enhance the value of Postal 

Service services to both senders and 

recipients. 

The value of postal services to both 

senders and recipients is enhanced 

when the service standards for those 

services are clear and reflect a balanced 

consideration of reasonable customer 

expectations and the capabilities of the 

mail processing and transportation 

networks. By aligning the proposed 

standards with operational capabilities, 

the Postal Service can provide reliable, 

consistent service, and properly fulfill 

the service expectations of both senders 

and recipients. Destination entry 

standards have been created and 

integrated with ‘‘end-to-end’’ mail flows 

to enhance the value of mailer 

worksharing, in a clear and easy-to-use 

format. Standard Mail deferability has 

been incorporated into the service 

standard day ranges and business rules, 

to reduce the potential for cumulative 

local deferral decisions that can result 

in unpredictable delivery times. In light 

of recent mail shifts from First-Class 

Mail to Standard Mail, preservation of 

clear distinctions between the service 

standards for the different mail classes 

(to reflect different service levels) will 

enhance value, consistency, and 

reliability and allow customers to 

continue to make informed choices 

regarding the service level desired. The 

proposed new time-sensitive service 

standards for many special services will 

give customers clearer expectations 

about the services offered, which will 

enhance the value of those services. 

(B)—To preserve regular and effective 

access to Postal Service services in all 

communities including those in rural 

areas or where Post Offices are not selfsustaining. 

Long-standing Postal Service policy 

has been to provide regular and effective 

access to postal services in all 

communities, whether urban or rural, 

without regard to whether post offices at 

particular origins or destinations are 

self-sustaining. The proposed marketdominant service standards adhere to 

this objective. Service standard day 

ranges have been extended for the states 

of Alaska and Hawaii and the territories 

of Guam, Puerto Rico, and the U.S. 

Virgin Islands. These changes reflect the 

Postal Service’s goal of seeking to satisfy 

customers’ desire for greater consistency 

and reliability on the basis of more 

realistic mail processing and 

transportation plans. The proposed day 

ranges more accurately reflect the 

significant logistical challenges and 

limited availability of economical 

transportation options for these service 

areas. The consultations with the Postal 

Regulatory Commission confirmed that 

both agencies share a sensitivity to the 

needs of customers in these states and 

territories. As with the contiguous 48 

states, service standard proposals are 

not influenced by whether any portion 

of any state or territory may be regarded 

as urban or rural, or the degree to which 

any Post Offices are self-sustaining. 

Additionally, it should be observed that 

some special services are accessible 

online 24 hours a day, seven days a 

week, which allows customers access 

regardless of the location in the Postal 

Service network. 

(C)—To reasonably assure Postal 

Service customers delivery reliability, 

speed, and frequency consistent with 

reasonable rates and best business 

practices. 

The Postal Service proposes to adjust 

service standard day ranges based on 

consistent and modern business rules, 

not only to meet customer needs and 

expectations, but also to conform to the 

capabilities of the current mail 

processing and transportation network. 

Accordingly, the Postal Service expects 

that customers will experience more 

reliable service, with reasonable levels 

of speed consistent with the relative 

degrees of expedition and priority in 

processing that are intrinsic to each 

market-dominant mail product. Such an 

approach is consistent with the goal of 

preserving reasonable rates and 

conforms to best business practices. 

(D)—To provide a system of objective 

external performance measurements for 

each market-dominant product as a 

basis for measurement of Postal Service 

performance. 

In accordance with subsection 

3691(b)(2), the Postal Service is 

continuing to meet with the Postal 

Regulatory Commission regarding the 

employment of a hybrid mix of external 

and internal service performance 

measurement systems.8 The Postal 

Service anticipates that these very 

constructive meetings will lead to the 

development of systems that generate 

data sufficiently reliable and robust for 

the management of its market-dominant 

mail and special services products, that 

keep postal customers reasonably 

informed about the quality of service 

provided, and that permit the 

Commission to fulfill its regulatory 

functions, in a manner that minimizes 

harm to the Postal Service’s commercial 

interests. Further details regarding the 

nature of these service performance 

measurement systems will be reflected 

in the Postal Service report to Congress 

detailing its network plan and 

operational objectives that will be 

implemented to meet the service 

standards proposed in this notice. That 

network plan will be developed after 

further consultations with the 

Commission, and the network plan 

report will be submitted to Congress on 

or before June 20, 2008, in accordance 

with PAEA section 302. 

B. The Statutory Factors 

As is demonstrated below, the 

proposed modern service standards also 

reflect a thorough consideration of the 

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enumerated factors in subsection 

3691(c). 

(1)—The actual level of service that 

Postal Service customers receive under 

any service guidelines previously 

established by the Postal Service or 

service standards established under this 

section. 

As described previously, early in its 

review of current service standards, the 

Postal Service examined data generated 

by the External First-Class (EXFC) 

measurement system for single-piece 

First-Class Mail, its Product Tracking 

System for Package Services, as well as 

data generated by its special services 

delivery and en-route mailpiece scan 

data systems, and its Customer 

Satisfaction Measurement system. In the 

absence of a system for the 

measurement of Periodicals and 

Standard Mail service performance, the 

Postal Service examined internal 

diagnostic data, as well as similar data 

provided by specific mailers in relation 

to actual delivery performance they 

have experienced. 

Such data are valuable as potential 

indicators of service performance. In 

addition, as discussed earlier, the Postal 

Service tracked over 300,000 live 

mailpieces to examine how mail flowed 

through its network and to help identify 

potential operational bottlenecks and 

logistical barriers to the provision of 

reliable and consistent mail service. The 

Postal Service also gathered information 

from customers using the methods 

described in the discussion above in 

Section 2 of this notice and below in 

reference to the next factor. All of this 

information provided a foundation from 

which the Postal Service could assess 

current levels of service. 

(2)—The degree of customer 

satisfaction with Postal Service 

performance in the acceptance, 

processing, and delivery of mail. 

The Postal Service used a 

combination of long-established 

customer outreach methods and efforts 

resulting specifically from the 

enactment of the PAEA to determine the 

degree of customer satisfaction in the 

acceptance, processing, and delivery of 

mail. Regarding service standards, the 

main recommendations were that 

service standards should be reliable, 

consistent, realistic, and attainable, and 

that any proposed changes reflect 

sensitivity to the impact of increased 

postal costs on rates that customer pay. 

Examples of other suggestions included: 

—Existing service standard guidelines 

should serve as a baseline for 

developing modern standards. 

—Measures should be taken to reduce 

the ‘‘tail’’ of the mail, the percentage 

of mail delivered later than the 

applicable standard. 

—Destination entry service standards 

should be incorporated where such 

rate incentives exist. 

—Service standards should vary on the 

basis of seasonality to accommodate 

the impact of the holiday mailing 

season. 

—Service standards for deferrable 

Standard Mail should reflect ‘‘inhome’’ delivery day ranges in lieu of 

specific delivery day targets, and 

performance should be measured on 

the basis of compliance with 

requested ‘‘in-home’’ delivery day 

ranges. 

—Service improvements and costs 

should be balanced. 

The proposed service standards take 

into account technology deployments 

and destination entry mailing practices 

that have emerged in the past few 

decades, as well as standardized mail 

processing flows that have been 

developed for each market-dominant 

mail product. As a result, the proposed 

standards are based upon current 

network capabilities. This should 

ensure better consistency and reliability 

in the delivery of mail, and give 

customers a more realistic picture of 

Postal Service delivery capabilities. By 

adopting standards based on actual 

network capabilities and what is 

realistically attainable, the Postal 

Service expects to provide more 

consistent and reliable service, and to 

reduce the ‘‘tail’’ of the mail. For 

Standard Mail, the Postal Service 

prefers the establishment of service 

standards that reflect specific day 

targets, as opposed to a range of ‘‘inhome’’ delivery days for each origindestination 3-digit ZIP Code pair. The 

Postal Service will collaborate with a 

mailing industry workgroup to further 

explore the needs of mailers who 

request ‘‘in-home’’ delivery dates. And, 

rather than adopt service standard day 

ranges or business rules that vary during 

the year, the Postal Service considers 

that the concerns underlying such 

proposals are more appropriate for 

consideration in the determination of 

performance goals, one of the subjects of 

the upcoming network plan 

consultations under PAEA section 

302(b)(1). In the development of those 

performance goals, the Postal Service 

will work with mailers to determine 

what types of goals would best address 

the issue of seasonality. 

The proposed modern standards 

preserve the differences in service levels 

among the different market-dominant 

mail products. In addition, the 

standards reflect consideration of 

customer preference for minimizing 

changes in service levels that could 

have an adverse impact on Postal 

Service costs for these mail products. 

(3)—The needs of Postal Service 

customers, including those with 

physical impairments. 

The Postal Service serves different 

types of customers, with varying needs. 

To ensure that its diverse stakeholders 

were heard, as explained above in 

Section 2, the Postal Service used a 

combination of long-established 

customer outreach methods, as well as 

efforts resulting specifically from the 

enactment of the PAEA. The Postal 

Service consulted with the Mailers’

Technical Advisory Committee (MTAC) 

and reviewed the Postal Service’s 

Customer Satisfaction Measurement—

Residential/Business surveys (CSM). 

The Postal Service also met with and 

solicited comments from mailers at the 

Postal Service/Postal Regulatory 

Commission Summit on Meeting 

Customer Needs in a Changing 

Regulatory Environment, and at the 

semi-annual National Postal Forum. 

Additionally, the Postal Service 

reviewed the comments solicited by the 

Commission at its three public hearings, 

held in Kansas City, Missouri; Los 

Angeles, California; and Wilmington, 

Delaware. Comments received in PRC 

Docket PI2007–1, Service Standards and 

Performance Measurement For MarketDominant Products, also were reviewed. 

The Postal Service also solicited input 

from postal unions, management 

associations, as well as through a 

consumer and small business survey. 

Examples of customers’ concerns and 

how they were addressed are detailed in 

reference to subsection 3691(c)(2) above. 

Of course, not every customer proposal 

could be accepted. Recommendations 

that ran contrary to the policies of Title 

39, or that did not appear to reflect a 

balanced consideration of all of the 

factors discussed here, were set aside. 

The PAEA also requires that the 

Postal Service take into account the 

needs of customers with physical 

impairments. 39 CFR 255.1 implements 

section 504 of the Rehabilitation Act of 

1973, as amended. Section 504 prohibits 

discrimination on the basis of disability 

in programs or activities conducted by 

the Postal Service. The Postal Service is 

not proposing to adopt any service 

standards or service standard changes 

that work to the disadvantage of 

customers with a disability. 

(4)—Mail volume and revenues 

projected for future years. 

The Postal Service examined recent 

mail volume and revenue trends for 

each market-dominant product, as 

reflected in its quarterly Revenue Pieces 

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& Weight/Origin-Destination 

Information System. The Postal Service 

also reviewed its Docket No. R2006–1 

test year volume projections. These data 

suggest that prudent decision-making is 

necessary if the Postal Service is to meet 

customer expectations at reasonable 

costs, especially in light of the price 

increase constraints on marketdominant products enacted as the 

centerpiece of modern ratemaking and 

the alternatives available for all marketdominant mail products. 

(5)—The projected growth in the 

number of addresses the Postal Service 

will be required to serve in future years. 

The Postal Service expects continued 

growth in the number of delivery 

addresses it must serve. Accordingly, 

the Postal Service considered this factor 

in conjunction with the impact that 

such growth could have on the 

feasibility of providing service at 

reasonable costs, in light of the current 

mail mix and volume trends. In 

developing the proposed modern 

service standards, the Postal Service 

took a conservative approach to change, 

in light of a shifting mail mix that 

generates less revenue per piece as FirstClass Mail volume declines. Revenue 

trends affect the Postal Service’s ability 

to expend capital and require it to 

ensure that its operations are designed 

to more efficiently deliver fewer pieces 

per address to a growing number of 

addresses. 

(6)—The current and projected future 

cost of serving Postal Service customers. 

As highlighted above, in view of the 

constraints on price increases that are 

imposed on market-dominant products, 

it is more important than ever that costs 

associated with these services be 

contained. At the same time, great care 

must be taken to ensure that necessary 

cost containment does not disturb 

customer service expectations. 

Accordingly, in determining the degree 

of adjustment to the current service 

standards for market-dominant 

products, the Postal Service was 

mindful of recent cost trends associated 

with these services, as well as available 

cost projections for these products. The 

Postal Service attempted to strike a 

reasonable balance between desired 

customer service and the need to 

contain costs. 

(7)—The effect of changes in 

technology, demographics, and 

population distribution on the efficient 

and reliable operation of the Postal 

Service delivery system. 

There have been significant advances 

in mail processing technology and 

postal transportation over the past 

several decades. Mail processing 

procedures have been adjusted over 

time to reflect those advances. Mail 

processing capacity in the Postal Service 

network must constantly be adjusted in 

response to geographic shifts in both 

population and the level of mailgenerating economic activity. The Postal 

Service must continue to improve the 

flexibility of its network for this reason. 

The proposed service standards reflect 

reasonable goals in light of the current 

network and technological advances 

that are expected in the nearterm. 

Sophisticated network mapping and 

transportation management tools now 

permit the Postal Service to manage and 

adjust its operations to meet service 

goals more efficiently. The Postal 

Service has taken into account the 

advent of Flats Sequencing System 

technology and advances in mailpiece 

scanning technology to continue to 

refine service management. Careful 

coordination will be necessary between 

the implementation of the network plan 

mandated by PAEA section 302 and the 

service standard changes proposed here 

to ensure that efficiency and reliability 

of service are improved. 

(8)—The policies of this title and such 

other factors as the Postal Service 

determines appropriate. 

The Postal Service has been 

established to operate as a basic and 

fundamental service to the American 

public. Management of the national 

postal system involves the balancing of 

important service and operational 

objectives, including promptness, 

reliability, and efficiency [39 U.S.C. 

101(a)]. To achieve these objectives, the 

Postal Service is empowered to 

determine the methods and to deploy 

the personnel necessary to conduct its 

operations [39 U.S.C. 1001(e)]. At the 

same time, the Postal Service is charged 

with operating and maintaining such 

facilities and equipment as are 

necessary to pursue these objectives [39 

U.S.C. 401(6)]. These considerations 

have weighed heavily in the 

development of the modern service 

standards proposed here. An improved 

alignment between service standards 

and current mail processing operational 

capabilities and limitations should 

prove beneficial in many respects. 

After the establishment of baseline 

modern service standards as a result of 

this rulemaking, the Postal Service 

intends to place a high priority on 

annual internal review of the service 

standard day ranges and business rules 

for its market-dominant products. The 

Postal Service expects to consider the 

aforementioned statutory factors as a 

part of any such internal review. As a 

part of this review, the Postal Service, 

at its discretion, may solicit either 

informal or formal public comment 

regarding current standards or proposals 

for change. The Postal Service also will 

give due consideration to its obligation 

to formally request advisory opinions 

from the PRC regarding any changes 

which may be at least ‘‘substantially 

nationwide’’ in scope, under the terms 

of 39 U.S.C. 3661. 

Section 5: Request for Comment 

It is emphasized that the proposed 

regulations are being published for 

comments and are subject to revision 

based on the comments received and 

further consideration by the Postal 

Service. Although exempt from the 

notice and comment requirements of the 

Administrative Procedure Act [5 U.S.C. 

553 (b), (c)] regarding proposed rule 

making by 39 U.S.C. 410 (a), the Postal 

Service invites public comments on 

these proposed regulations. 

List of Subjects in 39 CFR Parts 121 and 

122 

Postal Service. 

For the reasons stated in the 

preamble, the Postal Service proposes to 

amend 39 CFR Chapter I, Subchapter C, 

as follows: 

1. The heading of subchapter C is 

revised to read as follows: 

Subchapter C—General Information on 

Postal Products 

2. Parts 121 and 122 are added are 

added to read as follows: 

PART 121—SERVICE STANDARDS 

FOR MARKET-DOMINANT MAIL 

PRODUCTS 

Sec. 

121.1 First-Class Mail. 

121.2 Periodicals. 

121.3 Standard Mail. 

121.4 Package Services. 

121.5 Outbound Single-Piece First-Class 

Mail International Letters and Flats. 

Authority: 39 U.S.C. 101, 401, 403, 404, 

1001, 3691. 

§ 121.1 First-Class Mail. 

(a) For all intra-Sectional Center 

Facility (SCF) First-Class Mail properly 

accepted before the day-zero Critical 

Entry Time at origin, the service 

standard is 1-day (overnight), except for 

mail between the territories of Puerto 

Rico and the U.S. Virgin Islands and 

intra-SCF mail originating and 

destinating in the following 3-digit ZIP 

Code areas in the state of Alaska: 996, 

997, 998, and 999. First-Class Mail 

addressed to a destination 3-digit ZIP 

Code area outside of an origin intra-SCF 

service area may be considered for 

overnight delivery from that origin SCF, 

if that mail is accepted before the dayzero Critical Entry Time at origin, if 

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sufficient customer need exists [the 

destination SCF receives at least 1.5 

percent of the total annual First-Class 

Mail volume originating from the origin 

Processing & Distribution Center/ 

Facility (OPDC/F)], and if operational 

and transportation feasibility permit. 

(b) A 2-day service standard is 

established for all First-Class Mail 

properly accepted before the day-zero 

Critical Entry Time at origin if a 1-day 

service standard is not required and if 

the origin PDC/F to Area Distribution 

Center surface transportation drive time 

is 12 hours or less, unless the origin and 

destination are within the state of 

Alaska; or if the origin and delivery 

address are separately in the territories 

of Puerto Rico and the U.S. Virgin 

Islands; or if the mail is intra-SCF and 

originating or destinating one of the 

following 3-digit ZIP Code areas in 

Alaska: 996, 997, 998, and 999. 

(c) A 3-day service standard is 

established for all remaining First-Class 

Mail properly accepted before the dayzero Critical Entry Time at origin, if 

neither a 1-day nor a 2-day service 

standard is required and: 

(1) Both the origin SCF and the 

delivery address are within the 

contiguous 48 states; 

(2) The origin SCF is in the 

contiguous 48 states, and the delivery 

address is in either of the following: the 

995 3-digit ZIP Code area (including 

Anchorage AK), or the 968 3-digit ZIP 

Code area (including Honolulu, HI), or 

in the 006, 007, or 009 3-digit ZIP Code 

areas of the territory of Puerto Rico; 

(3) The origin is in the 006, 007 or 009 

3-digit ZIP Code areas of the territory of 

Puerto Rico and the delivery address is 

in the contiguous 48 states; 

(4) The origin SCF is in the state of 

Hawaii and the delivery address is in 

the territory of Guam; the origin is in the 

territory of Guam and the delivery 

address is in the state of Hawaii; or 

(5) Both the origin SCF and the 

delivery address are within the state of 

Alaska. 

(d) A 4-day service standard is 

established for all remaining First-Class 

Mail properly accepted before the dayzero Critical Entry Time at origin, if 

either a 1-day, 2-day, or 3-day service 

standard is not required, and if: 

(1) The origin SCF is in the 

contiguous 48 states and the delivery 

address is in either of the following: any 

portion of the state of Alaska not in the 

995 3-digit ZIP Code area; or any 

portion of the state of Hawaii not in the 

968 3-digit ZIP Code area; or the 

territory of the U.S. Virgin Islands. 

(2) The delivery address is in the 

contiguous 48 states and the origin is in 

either of the following: The state of 

Alaska, the state of Hawaii, or the 

territory of the U.S. Virgin Islands; 

(3) The origin and delivery address 

are in different states or territories, 

excluding mail to and from the territory 

of Guam and mail between the 

territories of Puerto Rico and the U.S. 

Virgin Islands. 

(e) A 5-day service standard is 

established for all remaining First-Class 

Mail properly accepted before the dayzero Critical Entry Time at origin if 

either the origin or the delivery address 

is in the territory of Guam. 

§ 121.2 Periodicals. 

(a) End-to-End. (1) For all SCF 

turnaround Periodicals properly 

accepted before the established and 

published day-zero Critical Entry Time 

at origin, where the origin P&DC/F and 

SCF are in the same building, the 

service standard is 1-day (overnight), 

except for mail between the territories of 

Puerto Rico and the United States Virgin 

Islands and mail originating or 

destinating in the following 3-digit ZIP 

Code areas within the state of Alaska: 

996, 997, 998, and 999. 

(2) The Periodicals service standard is 

the sum of the applicable (1- to 3-day) 

First-Class Mail service standard plus 

one day, for each 3-digit ZIP Code 

origin-destination pair for which 

Periodicals are accepted before the dayzero Critical Entry Time at origin and 

merged with First-Class Mail for surface 

transportation (as defined by the 

Periodicals Origin Split and First-Class 

Mail mixed Area Distribution Center/ 

Automated Area Distribution Center 

(ADC/AADC) Domestic Mail Manual 

label list L201). This standard also 

applies to Periodicals mailed between 

the territories of Puerto Rico and the 

U.S. Virgin Islands between the state of 

Hawaii and the territory of Guam and 

between SCFs within Alaska. 

(3) The Periodicals service standard 

for each remaining 3-digit ZIP Code 

origin-destination pair within the 48 

contiguous states, for which Periodicals 

are accepted before the day-zero Critical 

Entry Time at origin, is the sum of 4 or 

5 days, plus the number of additional 

days (from 1 to 4) required for surface 

transportation between each 3-digit ZIP 

Code origin-destination pair. 

(4) The Periodicals service standard 

for each remaining 3-digit ZIP Code 

origin-destination pair, for which 

Periodicals are accepted before the dayzero Critical Entry Time at origin, is the 

sum of 4 or 5 days, plus the number of 

additional days (from 4 to 18) required 

for intermodal (highway, boat, air-taxi) 

transportation outside of the 48 

contiguous states for each 3-digit ZIP 

Code origin-destination pair. 

(b) Destination Entry. (1) Periodicals 

that qualify for a Destination Delivery 

Unit (DDU) or Destination Sectional 

Center Facility (DSCF) discount, and 

that are accepted before the day-zero 

Critical Entry Time at the proper DDU 

or DSCF, have a 1-day (overnight) 

service standard, except for mail 

dropped at the SCF in the territory of 

Puerto Rico and destined for the 

territory of the U.S. Virgin Islands, and 

intra SCF mail in the following 3-digit 

ZIP Code areas of the state of Alaska: 

996, 997, 998 and 999. 

(2) Periodicals that qualify for a 

Destination Area Distribution Center 

(DADC) discount, and that are accepted 

before the day zero Critical Entry Time 

at the proper DADC, unless the ADC is 

located with the 48 contiguous states 

and the destination is not, and where 

the DADC and DSCF are not the same 

building, have a 2-day service standard, 

unless the ADC is located within the 

contiguous 48 states and the destination 

is not. Mail that qualifies for a 

Destination Sectional Center Facility 

(DSCF) discount has a 2-day service 

standard, if it is accepted before the dayzero Critical Entry Time, and the mail 

is dropped at the SCF in the territory of 

Puerto Rico and is destined for the 

territory of the U.S. Virgin Islands; or if 

the mail is intra-SCF in the following 3- 

digit ZIP Code areas of the state of 

Alaska: 996, 997, 998 and 999. 

(3) Periodicals that qualify for a 

Destination Area Distribution Center 

(DADC) discount and that are accepted 

before the day zero Critical Entry Time 

at the proper DADC in the contiguous 

48 states for delivery to addresses in the 

state of Alaska, or the territories of 

Guam or the U.S. Virgin Islands, have a 

service standard of either 6 or 7 days, 

depending on the origin-destination 3- 

digit ZIP Code pair. For each such pair, 

the applicable day within the range is 

based on the number of days required 

for transportation outside of the 48 

contiguous states. 

§ 121.3 Standard Mail. 

(a) End-to-End. (1) The service 

standard for Sectional Center Facility 

(SCF) turnaround Standard Mail 

accepted at origin before the day zero 

Critical Entry Time is 3 days when the 

origin Processing & Distribution Center/ 

Facility (OPD&C/F) and the SCF are the 

same building, except for mail between 

the territories of Puerto Rico and the 

U.S. Virgin Islands. 

(2) The service standard for Area 

Distribution Center (ADC) turnaround 

Standard Mail accepted at origin before 

the day zero Critical Entry Time is 4 

days when the OPD&C/F and the ADC 

are the same building, unless the ADC 

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is in the contiguous 48 states and the 

delivery address is not, or when the 

mail is between the territories of Puerto 

Rico and the U.S. Virgin Islands. 

(3) The service standard for intra-Bulk 

Mail Center (BMC) Standard Mail 

accepted at origin before the day zero 

Critical Entry Time is 5 days for each 

remaining 3-digit ZIP Code origindestination pair within the same Bulk 

Mail Center service area if the origin 

and destination are within the 

contiguous 48 states; the same standard 

applies to mail that is intra-Alaska, 

intra-Hawaii, or between the state of 

Hawaii and the territory of Guam. 

(4) For each remaining 3-digit ZIP 

Code origin-destination pair within the 

48 contiguous states, the service 

standard for Standard Mail accepted at 

origin before the day zero Critical Entry 

Time is the sum of 6 days plus the 

number of additional days (from 1 to 4) 

required for surface transportation 

between each 3-digit ZIP Code origindestination pair. 

(5) For each remaining 3-digit ZIP 

Code origin-destination pair, the service 

standard for Standard Mail accepted at 

origin before the day zero Critical Entry 

Time is the sum of 6 days plus the 

number of additional days (from 4 to 18) 

required for intermodal (highway, boat, 

air-taxi) transportation outside of the 48 

contiguous states for each 3-digit ZIP 

Code origin-destination pair. 

(b) Destination Entry. (1) Standard 

Mail that qualifies for a Destination 

Delivery Unit (DDU) discount and that 

is accepted before the day zero Critical 

Entry Time at the proper DDU has a 2- 

day service standard. 

(2) Standard Mail that qualifies for a 

Destination Sectional Center Facility 

(DSCF) discount and that is accepted 

before the day zero Critical Entry Time 

at the proper DSCF has a 3-day service 

standard, except for mail dropped at the 

SCF in the territory of Puerto Rico and 

destined for the territory of the U.S. 

Virgin Islands. 

(3) Standard Mail that qualifies for a 

Destination Area Distribution Center 

(DADC) discount, and that is accepted 

before the day zero Critical Entry Time 

at the proper DADC, has a 4-day service 

standard, unless the ADC is in the 

contiguous 48 states and the destination 

delivery address is not. Mail that 

qualifies for a Destination Sectional 

Center Facility (DSCF) discount, and 

that is accepted before the day zero 

Critical Entry Time at the SCF in the 

territory of Puerto Rico, has a 4-day 

service standard if it is destined for the 

U.S. Virgin Islands. 

(4) Standard Mail that qualifies for a 

Destination Bulk Mail Center (DBMC) 

discount and that is accepted before the 

day zero Critical Entry Time at the 

proper DBMC has a 5-day service 

standard, if both the origin and the 

destination are in the 48 contiguous 

states. 

(5) Standard Mail that qualifies for a 

Destination Area Distribution Center 

(DADC) or Destination Bulk Mail Center 

(DBMC) discount and that is accepted 

before the day zero Critical Entry Time 

at the proper DADC or DBMC in the 

contiguous 48 states for delivery to 

addresses in the states of Alaska or 

Hawaii or the territories of Guam, 

Puerto Rico, or the U.S. Virgin Islands 

has a service standard of either 8, 9, or 

10 days, depending on the 3-digit 

origin-destination ZIP Code pair. For 

each such pair, the applicable day 

within the range is based on the number 

of days required for transportation 

outside of the 48 contiguous states. 

§ 121.4 Package Services. 

(a) End-to-End. (1) The service 

standard for Sectional Center Facility 

(SCF) turnaround Package Services mail 

accepted at the origin SCF before the 

day zero Critical Entry Time is 2 days 

when the origin Processing & 

Distribution Center/Facility and the SCF 

are the same building, except for mail 

between the territories of Puerto Rico 

and the U.S. Virgin Islands. 

(2) The service standard for intra-Bulk 

Mail Center (BMC) Package Services 

mail accepted at origin before the day 

zero Critical Entry Time is 3 days, for 

each remaining (non-intra-SCF) 3-digit 

ZIP Code origin-destination pair within 

a Bulk Mail Center service area, where 

the origin and destination is within the 

contiguous 48 states and is not served 

by an Auxiliary Service Facility; for 

mail between the territories of Puerto 

Rico and the U.S. Virgin Islands. 

(3) The service standard for intra-Bulk 

Mail Center (BMC) Package Services 

mail accepted at origin before the day 

zero Critical Entry Time is 4 days for 

each remaining 3-digit ZIP Code origindestination pair within a Bulk Mail 

Center service area, where the 

destination delivery address is served 

by an Auxiliary Service Facility; the 

same standard applies to all remaining 

intra-Alaska mail and mail between the 

state of Hawaii and the territory of 

Guam. 

(4) For each remaining 3-digit ZIP 

Code origin-destination pair within the 

48 contiguous states, the service 

standard for Package Services mail 

accepted at origin before the day zero 

Critical Entry Time is between 5 and 8 

days. For each such 3-digit ZIP Code 

origin-destination pair, this is the sum 

of 4 days, plus the number of additional 

days (from 1 to 4) required for surface 

transportation between each 3-digit ZIP 

Code origin-destination pair, plus an 

additional day if the destination 

delivery address is served by an 

Auxiliary Service Facility. 

(5) For each remaining 3-digit ZIP 

Code origin-destination pair for which 

either the origin or the destination is 

outside of the 48 contiguous states, the 

service standard for Package Services 

mail accepted at origin before the day 

zero Critical Entry Time is between 7 

and 22 days. For each such 3-digit ZIP 

Code origin-destination pair, this 

represents the sum of 4 days, plus the 

number of days (ranging between 3 to 

18) required for intermodal (highway, 

boat, air-taxi) transportation between 

each 3-digit ZIP Code origin-destination 

pair. 

(b) Destination Entry. (1) Package 

Services mail that qualifies for a 

Destination Delivery Unit (DDU) 

discount and that is accepted before the 

day zero Critical Entry Time at the 

proper DDU has a 1-day (overnight) 

service standard. 

(2) Package Services mail that 

qualifies for a Destination Sectional 

Center Facility (DSCF) discount and that 

is accepted before the day zero Critical 

Entry Time at the proper DSCF has a 

2-day service standard, except for mail 

dropped at the SCF in Puerto Rico and 

destined for the U.S. Virgin Islands. 

(3) Package Services mail that 

qualifies for a Destination Bulk Mail 

Center (DBMC) discount, which is 

accepted before the day zero Critical 

Entry Time at the proper DBMC or 

Destination Auxiliary Service Facility, 

and that originates and destinates in the 

contiguous 48 states, has a 3-day service 

standard. Mail that qualifies for a 

Destination Sectional Center Facility 

(DSCF) discount, and that is accepted 

before the day zero Critical Entry Time 

at the SCF in Puerto Rico, has a 3-day 

service standard if it is destined for the 

U.S. Virgin Islands. 

(4) Package Services mail that 

qualifies for a Destination Bulk Mail 

Center (DBMC) discount and that is 

accepted before the day zero Critical 

Entry Time at the proper DBMC in the 

contiguous 48 states for delivery to 

addresses in the states of Alaska or 

Hawaii, or the territories of Guam, 

Puerto Rico, or the U.S. Virgin Islands 

has a service standard of either 6, 7, or 

8 days, depending on the 3-digit ZIP 

Code origin-destination pair. For each 

such pair, the applicable day within the 

range is based on the number of days 

required for transportation outside of 

the 48 contiguous states. 

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58970 Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / Proposed Rules 

§ 121.5 Outbound Single-Piece First-Class 

Mail International Letters and Flats. 

The service standard for properly 

accepted outbound Single-Piece FirstClass Mail International letters and flats 

is equivalent to the service standard for 

domestic First-Class Mail from the same 

origin 3-digit ZIP Code to the 3-digit ZIP 

Code area in which that origin’s 

designated International Service Center 

or International Mail Processing Unit is 

located. 

PART 122—SERVICE STANDARDS 

FOR MARKET-DOMINANT DOMESTIC 

SPECIAL SERVICES PRODUCTS 

Sec. 

122.1 Ancillary Special Services. 

122.2 Stand-Alone Special Services. 

Authority: 39 U.S.C. 101, 401, 403, 404, 

1001, 3691. 

§ 122.1 Ancillary Special Services. 

(a) For the domestic market-dominant 

mail products identified in part 121 of 

this chapter, mailers may purchase 

various ancillary special services 

products, which are designed to provide 

electronic access to information 

regarding delivery-related events or 

forwarding addresses for individual 

mailpieces. 

(1) For the following special services, 

the service standard for the electronic 

provision of delivery-related 

information is that it be made available 

to the sender no later than 24 hours after 

the time of the recorded delivery-related 

scan performed by the Postal Service: 

Certified Mail, Delivery Confirmation, 

Registered Mail, electronic Return 

Receipt, and Signature Confirmation. 

(2) For electronic Address Correction 

Service, the service standard for the 

electronic provision of forwarding 

address information is that it be made 

available to the sender no later than 24 

hours after the time of the recorded 

forwarding of the mailpiece by the 

Postal Automated Redirection System. 

(b) For the domestic market-dominant 

mail products identified in part 121 of 

this chapter, mailers may purchase 

insurance from the Postal Service to 

provide indemnity against loss or 

damage to the contents of a mailpiece. 

The service standard for the 

administrative resolution of insurance 

claims is that a final agency decision 

must be transmitted to the claimant no 

later than 30 days after the date on 

which the Postal Service has received 

all information from the claimant 

necessary for analysis of the claim. 

§ 122.2 Stand-Alone Special Services. 

(a) The service standard for Post 

Office Box service is that mail be 

available for pickup at the box each 

delivery day no later than the daily ‘‘uptime’’ publicly posted at the Post Office 

in which the box section is located. 

(b) The service standard for 

completion of Address List Services 

(change-of-address information for 

election boards and registration 

commissions, correction and ZIP Coding 

of mailing lists, and address sequencing) 

is transmission of the corrected 

addresses within 15 workdays of receipt 

to the requester, except for the period 

from November 16 through January 1. 

(c) For the domestic market-dominant 

mail products identified in part 121 of 

this chapter, Confirm service allows 

subscribing customers to obtain 

electronic information regarding when 

and where mailpieces undergo barcode 

scans in mail processing operations. The 

service standard for the electronic 

provision of Confirm scan information 

is that it be made available to the sender 

no later than 24 hours after the recorded 

time of the Confirm scan performed by 

the Postal Service. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. 07–5065 Filed 10–16–07; 8:45 am] 

BILLING CODE 7710–12–P 

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