66582 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

POSTAL SERVICE

39 CFR Part 111

Classification Reform; Implementation

Standards

AGENCY: Postal Service.

ACTION: Proposed rule.

SUMMARY: This represents the third

notice concerning Classification Reform

published by the Postal Service for

public comment. On June 29 and

August 30, 1995, the Postal Service

published advance notices of proposed

rulemaking (60 FR 34056–34069 and 60

FR 45298–45323, respectively). Each

provided information about current

Postal Service proposals and decisions

regarding prospective rate eligibility and

mail preparation standards, and

opportunities for public comment on

those and other important issues related

to the Postal Service’s pending MC95–

1 Classification Reform proposals. This

notice reviews the preceding months’

activity in this regard, presents

extensive discussion of comments

received on the second notice, detailed

descriptions of proposals that are new

or revised and estimates of their affect

on the mailing community, overview

charts to assist commenters in

understanding the implementing

standards set forth in the proposed rule,

and the full text of the Domestic Mail

Manual standards the Postal Service

proposes to adopt to implement its

Classification Reform proposals.

DATES: Comments on the

implementation process or proposed

standards must be received on or before

January 22, 1996.

ADDRESSES: Mail or deliver written

comments to the Manager, Customer

Mail Preparation, USPS Headquarters,

475 L’Enfant Plaza SW, Room 6830,

Washington DC 20260–2405. Copies of

all written comments will be available

at the above address for inspection and

photocopying between 9 a.m. and 4

p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Leo

F. Raymond, (202) 268–5199.

SUPPLEMENTARY INFORMATION: On March

24, 1995, pursuant to its authority under

39 U.S.C. 3621, et seq., the Postal

Service filed with the Postal Rate

Commission (PRC) a request for a

recommended decision on a number of

mail classification reform proposals.

The PRC designated the filing as Docket

No. MC95–1 and proceedings are

currently under way before the PRC in

accordance with 39 U.S.C. 3624 and the

PRC’s rules of practice under 39 CFR

3001. A notice of the filing, with a

description of the Postal Service’s

proposals, was published on April 3,

1995, in the Federal Register by the PRC

(60 FR 16888–16893).

On June 29, 1995, the Postal Service

published for public comment in the

Federal Register an advance notice of

proposed rulemaking (60 FR 34056–

34069). That notice included an

overview of the Postal Service’s

proposals in MC95–1, the process that

was used in developing them, and the

instant process being used to prepare for

implementation of classification reform

and to begin development of the

implementing standards for future use

in the Domestic Mail Manual (DMM).

The notice also contained detailed

information about issues that had been

developed for consideration as part of

the implementation process, prepared in

a format that paralleled the listing of

requirements in the Domestic Mail

Classification Schedule (DMCS) portion

of the MC95–1 filing. Among the

purposes for publishing the advance

notice was the elicitation of comments

on the proposed criteria under

consideration for inclusion in DMM

implementing standards, many of which

had been developed with the advice of

the Classification Reform

Implementation Advisory Groups (IAGs)

convened by the Postal Service as part

of the process described in the notice.

Readers who are unfamiliar with the

content of the Postal Service’s MC95–1

filing, or the process that is under way

for implementation of MC95–1, should

review the June 29 notice.

On August 30, 1995, the Postal

Service published for public comment

in the Federal Register a second

advance notice of proposed rulemaking

(60 FR 45298–45323). The second notice

reported a summary of the comments

received from the earlier notice and

invited further comment from interested

parties on updated proposed

implementing standards and on the

implementation process generally.

Readers were advised that, following

review of comments received for that

notice, the Postal Service would revise

its proposed implementation criteria as

appropriate and use them as the basis

for the DMM standards it would

propose for adoption if the

Classification Reform proposals

requested by the Postal Service in PRC

Docket No. MC95–1 are adopted. Those

proposed DMM standards are set forth

after the discussion of comments from

the second notice.

Pursuant to 39 U.S.C. 3624, the PRC

will issue a recommended decision on

the Postal Service’s Request to the

Governors of the Postal Service. This

recommendation is expected in January

1996. Pursuant to 39 U.S.C. 3625, the

Governors will act on the PRC’s

recommendations. If the Governors

determine to place the PRC’s

recommendations into effect, the Board

of Governors will set an implementation

date for the rate and classification

changes to take effect. Publication of a

notice announcing the Governors’

decision and the issuance of final

Domestic Mail Classification Schedule

and Rate Schedule changes will be

made immediately following the

Governors’ decision. After reviewing the

comments received on this proposed

rule in light of the PRC’s

recommendations and of the Governors’

decision, a final rule will be published

adopting appropriate DMM

implementing standards for the rate and

classification changes. Publication of

this final rule will be either concurrent

with publication of the Governors’

decision or as soon thereafter as

possible.

Part A of this notice summarizes

major changes that have been made to

or added to the proposed

implementation standards since the

second advance notice of proposed

rulemaking. Part B provides an analysis

of comments received on the second

notice and the Postal Service responses.

Part C provides a presort summary

guide with charts for each proposed

rate. Part D contains a table showing ZIP

Codes ineligible for Automation Carrier

Route rates. Part E summarizes

proposed changes to the DMM, followed

by the proposed revisions to DMM

standards.

A. Major Changes and Additions Since

August 30 Notice

This section identifies proposed

additions and changes to the DMM

mailing standards that were not

specifically indicated in the summary of

preparation standards presented in the

August 30 advance notice of proposed

rulemaking. To aid readers in

identifying changes which might affect

them, this information is provided in

the following subject matter groups: (1)

Changes to the proposed mailing

standards described in the August 30

notice; (2) additional changes for the

reformed subclasses of mail not

included in the August 30 notice; (3)

changes generally affecting all classes of

mail; (4) changes reflecting planned

adjustments in postal operations; (5)

changes affecting address matching for

all classes of mail; (6) changes affecting

all third-class mail; (7) changes affecting

nonprofit third-class mail; (8) changes

affecting all second-class mail; (9)

changes affecting preferred rate second-
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66583

class mail; and (10) changes affecting all

fourth-class mail. Unless otherwise

stated, the Postal Service proposes to

make these changes effective at the same

time as the Classification Reform

changes are implemented.

1. Changes to Mailings Standards

Contained in August 30 Notice

a. The proposed requirement to use

uniform placement of address elements

within Retail Presort First-Class, Regular

and Enchanted Carrier Route Standard

Mail, and nonautomation-compatible

Publications Service Periodicals

mailings has been withdrawn.

b. The proposed minimum quantity

for a package of automation-compatible

Publications Service letters to qualify

for carrier route rates has been revised

from 10 pieces to 6 pieces. This would

establish a standard 6-piece package

size for all Publications Service

Periodicals.

c. New sortation criteria have been

added for nonautomation-compatible

letters for Publications Service and

Regular Periodicals. The new

Publications Service sortation proposal

would require preparation of packages

since this mail cannot be processed on

automation. The new sortation criteria

for Regular Periodicals nonbarcoded

letters also would require package

preparation, and allows Regular

Periodicals to qualify for presort rates in

the same manner as today.

d. Separate sortation criteria have

been added for Regular Periodicals

barcoded letters and Regular Periodicals

barcoded flats. As discussed in the

section concerning comments on the

Periodicals proposals, Publications

Service does not have a separate

barcoded rate and carrier route mail

may be counted toward the 85% ZIP+4

or delivery point barcoded requirement.

However, the Regular subclass has

separate 3/5 and Basic Barcoded rates.

For Postal Service processing efficiency,

Regular Periodicals mailers wishing to

qualify for the separate Barcoded letter

and flat rates must prepare separate

Barcoded rate mailings meeting a

separate 85% barcoding requirement

that does not include the carrier route

portion of the mailing, and that does not

include firm packages. These pieces are

excluded because they are not processed

on automation. These new Regular

barcoded letter preparation proposals

reflect the new tray sortation levels that

will be implemented with Classification

Reform. The current 10-piece 5-digit

package, 50-piece 3-digit package, and

10-piece AADC package standards are

retained to maintain eligibility for the 3/

5 Barcoded rates. Since the proposed

Regular Barcoded letter rates do not

provide for a separate 5-digit Barcoded

rate and a separate 3-digit Barcoded

rate, but rather a combined 3/5

Barcoded rate, the preparation of all

possible 5-digit packages before

preparing 3-digit packages will be

required.

e. Automation-compatible

Publications Service letter-size mailings

also have only one rate for noncarrier

route sorted mail. Because there is no

separate 5-digit Barcoded rate for this

mail, preparation of all possible 5-digit

trays will be required.

f. The presort requirements for

Regular Standard Mail letters have been

revised to incorporate a minimum of

150 pieces of mail for a 3-digit

destination to qualify for 3/5 presort

rates and to prepare 5-digit and 3-digit

tray levels. This reflects a consistent

application of a 150-piece criterion to

qualify for 5-digit and 3-digit rates for

letter mail (with the exception of

barcoded Regular Periodicals). This

proposal would also keep qualification

levels for 3/5 rates at levels somewhat

equivalent to current preparation

standards.

g. Within First-Class and Standard

Automation Mail, and automationcompatible Publications Service letters,

a proposed requirement for a minimum

of 150 pieces of mail to an AADC

destination before mailers may prepare

an AADC tray has been added. This

proposal also reflects the Postal

Service’s desire to maintain a consistent

150-piece tray preparation criteria for

barcoded letter mail.

h. A requirement has been added to

the proposal that all letter mail be

prepared in trays under the reformed

subclasses, including Enhanced Carrier

Route Standard Mail, and Regular and

Publications Service Periodicals. This

requirement is discussed in more detail

below in the section on letters.

i. With certain exceptions for local

mailings and some pallet levels, all

letter and flat trays containing mail in

the reformed subclasses would have to

be sleeved and strapped. This is

discussed in more detail below in the

section on letters.

j. The proposed standards have been

revised concerning the preparation of

pieces that meet the standards for both

letter-size and automation-compatible

flat-size mail, and that are prepared as

packages placed directly on pallets. The

revision would limit the amount of

Regular Standard Mail that can be

palletized in this manner to 10% of the

total pieces in the mailing job. This is

discussed in more detail below in the

section on flats.

k. Because of the differences in

presort and rate eligibility criteria, the

proposed option to combine letter-size

mailings of Regular and Publications

Service Periodicals has been removed.

l. The provision for local approval to

prepare First-Class Mail in pouches has

been removed from the DMM. This

provision was primarily to allow

pouching of flat-size pieces and parcels.

Because DMM provisions have been

proposed for traying flat-size pieces and

sacking First-Class parcels, the

provision for local approval of pouching

is no longer needed.

m. The qualification criteria for

Destination Delivery Unit discounts for

Standard Mail and Publications Service

Periodicals have been revised to require

that mailers to take carrier route sorted

mail to the postal facility where

sequencing of the mail takes place. For

Automation Standard Mail and for

automation-compatible carrier route

letter-size Publications Service

Periodicals, this could be the facility

where the carrier sequence barcode

sorter (CSBCS) that sequences this mail

is located, rather than the facility were

the carrier is located.

n. The proposal to require that

addresses in Retail Presort and

Automation First-Class mailings be

updated for moves within 6 months of

the mailing has been clarified to

indicate that it would become effective

as a rate eligibility requirement

beginning 6 months after Classification

Reform implementation, or January 1,

1997, whichever is sooner.

2. Additional Proposed Changes for

Reformed Subclasses Not Specified in

August 30 Notice

a. New sack sortation standards for

First-Class parcels have been added.

Because, the preparation of parcels in

flats trays is generally inappropriate,

sack preparation criteria have been

added for this processing category of

First-Class Mail.

b. Clarification has been added that

Publications Service mailings may

include in-county pieces even though

such pieces do not count toward the

eligibility requirements for the

Publications Service rates.

c. For all mailings under the reformed

subclasses, provisions have been added

requiring the preparation of a less-thanfull 3-digit tray for each 3-digit ZIP Code

of the SCF that serves the entry post

office. This would allow small

quantities of local mail to avoid being

transported to and processed at an ADC

or AADC, resulting in better service and

expanding the opportunity for Standard

Mail and Periodicals to obtain

destination SCF rates.

d. The rules in this notice reflect the

Postal Service’s intent to allow mailers
66584 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

to include only pieces with postage

affixed at an Automation First-Class or

Standard rate in mailings presented

under the value added refund (VAR)

procedures in DMM P014.4. That the

relationship between mailers

participating in the VAR process, such

as presort bureaus, and their customers

is that letter-size pieces coming into

their operations are intended to be

incorporated into the automation

mailstream. Requiring postage to be

affixed at an automation rate will

simplify the documentation and

verification process for mailers, their

customers, and the Postal Service by

reducing the number of different rates

for which value added computations

must be made.

3. Proposed Changes That Generally

Affect All Classes

a. Marking requirements that reflect

the proposed new class and subclass

names have been added throughout the

DMM. In order to make it easier to apply

the rate/subclass markings that are

planned under Classification Reform, an

option has also been added to allow

placement of these markings on the

optional endorsement line, in front of

the package label information.

Furthermore, the current required walksequence markings for Regular and

Publications Service Periodicals, and for

Automation, Enhanced Carrier Route,

and Regular Standard Mail have been

changed from ‘‘WS’’ to ‘‘WSH’’ or

‘‘WSS’’ to facilitate obtaining separate

cost information for pieces mailed at the

High Density and Saturation rates,

respectively.

b. Appropriate labeling list

information has been added for trays,

sacks, and pallets. The ADC labeling

list, DMM L101, proposed in this notice

to apply more generally and not to FirstClass Mail only, has been redesignated

accordingly as DMM L004.

c. Provisions have been added to the

DMM that require mailings of different

subclasses to be prepared as separate

mailings, to meet separate minimum

quantity requirements, and to bear

appropriate rate/subclass markings and

appropriate postage.

d. Specific standards have been

included in proposed DMM M020 and

M033 about how to place mail in trays,

when to package, and what packaging

material is permitted.

e. Pallet preparation rules are also

included in this proposal. These pallet

rules reflect the standards contained in

a separate, recently published final rule

on pallet preparation that adopts

changes pertaining to the physical

characteristics of pallet loads, such as

minimum/maximum height and weight

limits, and provisions for triplestacking. That final rule is expected to

appear in the Federal Register on

December 20, 1995. It adopts changes

proposed on July 31, 1995 (60 FR

39080–39088). Although those changes

are not affected by the Postal Service’s

Classification Reform proposal, they are

included in this proposed rule for

providing the entire set of rules on

pallets as they would look like after

Classification Reform. The pallet rules

in this proposal also contain proposed

DMM standards on levels of pallet

sortation and requirements to prepare

pallets of Standard Mail and Periodicals

sorted to the finest levels, which are

affected by Classification Reform. These

proposals are open to further comment.

4. Proposed Changes That Reflect

Adjustments in Postal Operations

The Postal Service plans to make

changes in its processing networks to

reflect changes that have occurred over

time, and to implement improvements

to the way it processes and transports

mail. One change is the elimination of

the current state distribution center

(SDC) network for non-First-Class

letters, flats, and irregular parcels. The

Postal Service plans to eliminate this

network and merge the mail currently

processed (SDC, state, and mixed states

sorted mail) into the area distribution

center (ADC) network currently used for

First-Class Mail. This change should

enhance service for SDC and state mail,

provide a finer breakdown of this mail

for more precise sortation and

transportation (the ADC network has

more processing centers than the SDC

network), and reduce the redundancies

of two overlapping processing networks.

With this change, all letters, flats, and

irregular parcels will be processed on

the same network. As a result, the Postal

Service expects to improve service and

reduce the handlings for processing this

mail.

The Postal Service also plans to

eliminate the current option for mailers

to prepare mail sorted to specific multiZIP Coded post offices (listed in DMM

L001). Due to changes in Postal Service

operations, this level of sortation no

longer provides additional value to the

Postal Service because most of this mail

is now sorted at a mail processing plant

that serves such post offices. The Postal

Service has itself stopped preparing

most such sortations. Moreover, the

implementation of letter and flat

automation has reduced the need for

these separations because, for this mail,

it is more efficient to process larger

quantities of mail made up to fewer

sortation levels.

The Postal Service plans to

implement the transition from the SDC

network to the ADC network and to

eliminate optional city preparation

when it implements the rate and

classification changes that result from

Classification Reform. Making all these

changes at the same time will have less

impact on postal operations and on

mailers than if they were made in

stages. The Postal Service proposes to

apply these changes systemwide to all

affected subclasses of mail, both

reformed and not, in order to obtain the

maximum benefit. Preferred Rate

Periodicals, however, will retain the

option of being prepared in optional city

packages and sacks, because eliminating

them could affect qualification for the

Level H rates.

A less-than-systemwide

implementation of the ADC network

would compel the Postal Service to

maintain SDC, states, and mixed states

processing and optional city preparation

for only a portion of the letter, flat, and

irregular parcel mailstreams. This dual

system would complicate processing

and would impose unwarranted costs

for separate facilities, equipment, and

personnel for a greatly reduced volume

of SDC network mail.

Therefore, the Postal Service proposes

to eliminate the optional city package

and sack sortation level and to eliminate

the SDC, state, and mixed states package

and sack sortation levels for all current

second- and third-class letters and flats

and all current third- and fourth-class

irregular parcels, except Preferred Rate

Periodicals, which will retain the option

of being prepared in optional city

packages and sacks. The SDC, state, and

mixed states package and sack sortation

levels will be replaced by ADC and

mixed ADC package and sack sortation.

Customers should note that because

alignment of the Postal Service’s

processing and distribution networks is

an ongoing process, the facilities listed

as ADC/AADC destinations at the time

that Classification Reform is

implemented might differ from those

shown in the DMM labeling lists

contained in this proposal. Some ZIP

ranges might change, and some facilities

currently identified as ADC or AADC

destinations might be realigned. The

same range of ZIP Codes also might be

assigned to different ADC facilities,

depending on the class of mail.

5. Proposed Changes Affecting Address

Matching for All Mail

The Postal Service has also been

developing improvements in the

product cycle and the update schedule

for its Address Information System

(AIS) products. In conjunction with the
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66585

Classification Reform case, the Postal

Service proposed adopting a bimonthly

update frequency for its AIS products. It

also proposed requiring that carrier

route information used in qualifying for

all carrier route rates be obtained

through a match to a current Carrier

Route Information System (CRIS)

scheme or other AIS product that

contains carrier route coding

information no more than 90 days

before the date of the mailing. This

change is necessary due to the proposed

increase in the issuance cycle of AIS

products and the need to standardize

the time frames applicable to the use of

those products. A more detailed

discussion of this change is set forth

below in the section on the addressing

proposals in the August 30 notice. The

Postal Service proposes to apply these

AIS changes to carrier route mailings of

all classes and subclasses. Given the

frequency of route adjustments that will

occur over the next few years,

maintaining the old matching schedule

for some carrier route mail while

changing it for other mail would be

confusing, costly and irrational because

of overlapping required updates.

Mailers at ZIP+4 and Barcoded rates

will also be required to use a current

database as defined under new release

date schedules when matching

addresses to the ZIP+4 database.

Mailings prepared under subclasses not

included under the current proposals

for Classification Reform would need to

have their addresses matched to the

ZIP+4 database using CASS- or MASScertified address matching software

once a year, whereas mailings prepared

under the reformed subclasses would

need to have this match performed at

least once every 6 months. The

frequency at which address matching

software must obtain CASS/MASS

certification also will not change.

6. Changes Affecting All Third-Class

Mail

a. Due to the proposed adoption of the

name Standard Mail as part of

Classification Reform for all mail

currently in third- and fourth-class mail,

the Postal Service proposes to change

the class abbreviations from 3C to STD

for sack, tray, and pallet labels for

current third-class mail (which will be

known as Standard Mail (A)).

b. To make it easier to apply the rate/

subclass markings that are proposed

under Classification Reform, this

proposal would allow Standard mailers

the option of placing these markings on

the optional endorsement line, in front

of the package label information.

7. Proposed Changes Affecting

Nonprofit Third-Class Mail

As a convenience to Nonprofit

Standard mailers, the Postal Service

proposes to allow an optional

preparation of Nonprofit Standard Mail

under the rate eligibility, presort rules,

PAVE-certified presort software or

standardized documentation

requirements, and address quality and

accuracy standards for the reformed

subclasses. The current third-class

nonprofit rates would apply to such

mailings. For example, mailers could

choose to prepare a letter-size Nonprofit

3/5 and Basic mailing under the

preparation rules for the Regular

Standard Mail subclass. This would

mean that the addresses would have to

be matched to the correct 5-digit ZIP

Code no more than 1 year before the

date of mailing; PAVE-certified software

would have to be used to presort the

mailing or standardized documentation

would have to be submitted with the

mailing; the pieces would have to be in

groups of 150 pieces to a 3-digit area

trayed to 5-digit and 3-digit

destinations, with the trays sleeved and

strapped. The current nonprofit thirdclass 3/5 rates would apply to groups of

150 pieces for a 3-digit area properly

presorted under the Regular Standard

Mail standards. Preparation of Nonprofit

Standard Mail under the rules for

Regular, Automation, or Enhanced

Carrier Route Standard Mail would also

enable it to be combined (comailed)

with mailings of those subclasses.

8. Proposed Changes Affecting All

Current Second-Class Mail

a. Due to the change in the name of

second-class mail that is proposed with

implementation of Classification

Reform, the Postal Service proposes to

change the class abbreviations from 2C

or NEWS to PERIOD or NEWS, as

applicable, for sack, tray, and pallet

labels for all Periodicals, including

Preferred Rate Periodicals. In addition,

the mail processing category of the mail

will be required to follow the class

abbreviation on the second line of the

sack or tray label, making those

standards for Periodicals consistent

with other classes of mail, and assist

Postal Service mail processing

personnel in directing containers of

Periodicals to the proper operation.

b. The Periodicals imprints required

as part of the identification statement

would be changed from ‘‘Second-Class

Postage Paid at * * *’’ and

‘‘Application to Mail at Second-Class

Postage Rates is Pending at * * *’’ to

‘‘Periodicals Postage Paid at * * *’’ and

‘‘Application to Mail at Periodicals

Postage Rates is Pending at * * *.’’

9. Proposed Changes Affecting Preferred

Rate Second-Class Mail

As a convenience to Preferred Rate

Periodicals mailers, the Postal Service

proposes to allow the optional

preparation of Preferred Rate Periodicals

under the presort and eligibility rules

for Regular Periodicals (including

addressing and PAVE-certified or

standardized documentation standards).

The current second-class preferred rates

would apply to such mailings. For

example, if a mailer chose to prepare a

letter-size Nonprofit Level G and H

mailing under the preparation rules for

the Regular Periodicals 3/5 and Basic

rates, the pieces would have to be

trayed, sleeved, and strapped, and

optional city and optional SCF

sortations could not be performed. The

Level H rates would apply only to 5-

digit and unique 3-digit packages

properly sorted to 5-digit and 3-digit

trays.

10. Proposed Changes Affecting All

Current Fourth-Class Mail

Due to the change in the name of

fourth-class mail that is proposed with

implementation of Classification

Reform, the Postal Service proposes to

change the class abbreviations from 4C

to STD 4C for sack labels for fourth-class

mail (which will be known as Standard

Mail (B)), and to change the rate

markings ‘‘Special Fourth-Class’’ and

‘‘Presorted Special Fourth-Class’’ to

‘‘Special Standard Mail’’ and ‘‘Presorted

Special Standard Mail’’ to agree with

the revised names for these types of

mail.

B. Summary of Comments From Second

Notice

The Postal Service received 49 pieces

of correspondence offering a total of 207

comments on the August 30 notice.

Respondents included major mailer

associations, individual publishers,

printers, presort bureaus, mailers, and

private citizens. As with the first notice,

the comments do not lend themselves to

easy categorization or direct association

with specific provisions in the second

notice. Rather, commenters tended to

speak to general areas of concern, such

as automation, or to common aspects of

several proposed criteria, such as tray

volumes for several different presort

levels. Although the proposals were

replicated in the second notice in the

same format as in the first, comments

tended to aggregate these into a single

response.

The largest single area to which

comments were directed in general was
66586 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

the preparation of automation mail

(First-Class Mail and Standard Mail);

approximately 70 comments discussed

issues in that area. Addressing issues

were the focus of 28 comments,

although other comments mentioned

addressing issues to a degree.

Publications Service was the subject of

13 comments. Nonautomation FirstClass (Retail subclass) and Standard

Mail (Regular and Enhanced Carrier

Route subclasses) received a total of 2

and 27 comments, respectively. Another

26 comments discussed general issues,

including some (like the wisdom of

classification reform) that are beyond

the scope of this rulemaking. The

specific points raised in the comments

are presented below, organized by

subject areas represented by the

Implementation Advisory Groups

(IAGs): letters, flats, addressing, and

publications. Miscellaneous issues are

reported thereafter. Readers are invited

to comment on the proposed DMM

provisions and to identify additional

proposals or issues that warrant

inclusion in Classification Reform

implementation plans.

1. General Comments

a. Minimum Quantity Requirements

One commenter asked whether

separate 200-piece minimums will be

required for each Standard Mail

subclass when the mailings are

commingled on pallets. Each subclass of

Standard Mail (Automation, Enhanced

Carrier Route, and Regular) will be

required to meet a separate 200-piece

minimum quantity requirement, and

each subclass of First-Class Mail

(Automation and Retail) will have to

meet a separate 500-piece minimum

quantity requirement.

b. Definitions of Mailing and Mailing

Job

One commenter requested

clarification of what a mailing and a

mailing job will be under Classification

Reform. This commenter noted that

because the Postal Service indicated

that it will allow mailings of different

subclasses to be claimed on the same

mailing statement, that the current

axiom that ‘‘a mailing statement equals

a mailing’’ cannot be used. This

commenter also requested a definition

of a mailing job as used in the

description of when pieces meeting the

standards for both letter-size and

barcoded flat-size pieces may be

prepared as packages on pallets. He

specifically asked whether there will be

time limits such as a day, week, or

month for a mailing job.

A mailing may include only one

subclass and only one mail processing

category (e.g., letter, flat) and is reported

on a mailing statement. A mailing job,

defined by the mailer and agreed to by

the local business mail entry unit,

contains the total pieces meant to be

mailed to a defined set of addresses. A

mailing job may contain more than one

mailing (e.g. more than one subclass).

c. Presort Accuracy Validation and

Evaluation (PAVE)

The Postal Service has proposed to

require use of PAVE-certified software

or standardized documentation when

preparing mailings under any of the

reformed subclasses. Nine comments

were received regarding this proposal,

five of which included requests for

clarification of standards.

Two commenters wanted a definition

of ‘‘standardized documentation’’ and

examples of any required

documentation along with more clearly

defined requirements. One asked

whether PAVE certification will be

available before the implementation of

Classification Reform. A commenter that

uses software developed in-house asked

how the requirement for PAVE

certification affects in-house software

developers and requested further

clarification of PAVE. Another

commenter expressed concerns about

documenting overflow trays and

requested clarification of content

documentation for allowed overflow

trays.

A utility company said that it would

like uniform requirements for mailing

documentation and a single

computerized mailer file, possibly

accessible by permit number, that

would document Postal Service

certification of software and mailing

processes. A second utility company

believed that CASS, which focuses on

address quality, and PAVE are

duplicative in nature and suggested that

public utility mailers who use CASScertified software and update customer

moves within the prescribed time frame

should be exempt from the requirement

to use PAVE software.

PAVE and CASS are not duplicative.

CASS tests the ability of address

matching software to match addresses

correctly to the Postal Service ZIP+4

database and to apply proper barcodes.

PAVE tests the ability of presort

software to sort addresses correctly

according to Postal Service sortation

requirements and to produce accurate

presort and postage documentation and

accurate mailing statement facsimiles.

The Postal Service plans to have

PAVE testing available for all reformed

subclasses prior to implementation of

Classification Reform. PAVE

certification does not remove the

requirement to submit documentation

with each mailing where documentation

is required. This is because PAVE tests

the ability of the software program to

sort properly, but does not test the

mailer’s proper use of it or application

of proper mailing parameters to each

mailing. PAVE also tests the ability to

prepare properly formatted mailing

statement facsimiles. The Postal Service

also plans to make production of

standard documentation a requirement

for PAVE certification. Software that is

developed in-house may be PAVEcertified. Requests for PAVE

certification information and tests

should be directed to: PAVE Program,

National Customer Support Center,

United States Postal Service, 6060

Primacy Pky Ste 101, Memphis TN

38188–0001

Mailers will have the choice of using

either PAVE-certified software or

standardized documentation, regardless

of whether they use presort software.

Therefore, mailers not using software to

sort their mail will not need to meet the

PAVE requirements. However, such

mailers must be able to present

standardized documentation for those

mailings that require documentation.

Standardized documentation

requirements are still being developed

and will be published for comment in

a separate proposed rule. The Postal

Service expects to publish this proposal

in the Federal Register by early

February 1996. Questions concerning

whether overflow trays will need to be

documented also will be addressed in

that notice.

The request for a single computerized

mailer file, possibly accessible by

permit number, that would document

Postal Service certification of software

and mailing processes is more related to

a system certification approach to mail

acceptance. Although this is an idea that

will be considered for the future, it will

not be developed and deployed by the

time of Classification Reform

implementation.

2. Automation Subclasses

a. 100% Barcoding

The Postal Service has proposed that

First-Class and Standard Mail

Automation subclasses be composed of

100% delivery point barcoded pieces for

letters and 100% ZIP+4 barcoded or

delivery point barcoded pieces for flats.

Fifteen commenters responded to the

proposal for 100% barcoding.

Three commenters supported this

proposal because it promotes higher

quality addresses. Four commenters
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66587

indicated that they cannot obtain 100%

barcoding of their mailing lists. Six

commenters expressed doubts that the

goal could be achieved because current

matching software is too restricted from

making matches to the ZIP+4 file and

because data missing from the file

prevents a match.

Mailers with good quality addresses

can obtain delivery point barcodes on

their mailpieces. If they cannot, those

pieces can be mailed at the appropriate

subclass rates for nonbarcoded mail.

Having identified a need for accurate

barcodes to ensure proper automated

sortation, the Postal Service tests and

certifies address matching software to

ensure that the software is producing

correct barcodes. Because only correct

barcodes are acceptable, software is

controlled to help ensure that a barcode

will not be applied if an incomplete or

otherwise poor quality address inhibits

reliable coding. The Postal Service is

proposing reduced postage rates for mail

with correct barcodes. Those rates were

not designed to apply to nonbarcoded

mail or to mail with incorrect barcodes.

Incorrect barcodes cause misdirected

mailpieces, in turn causing increased

costs and reducing the Postal Service’s

ability to provide timely, consistent

delivery service. To aid mailers with

barcoding, the Postal Service already

has a variety of tools for improving

address quality. If the mailer cannot use

CASS- or MASS-certified software to

successfully barcode some of its mail

(with a delivery point barcode or, for

flats, a correct ZIP+4 barcode), the

mailer will be required to mail those

pieces at the Retail First-Class or

Regular Standard rates.

One commenter wanted Address

Element Correction extended to small

mailers. The current limit is 10,000

address records. However, smaller lists

may be acceptable. Interested mailers

should call the National Customer

Support Center at (800) 238–3150. The

National Customer Support Center can

also provide information on a variety of

other address quality improvement

products and services.

Four commenters indicated that

improvements in address correction

service are needed, one of whom stated

that carriers often do not provide

address corrections if they can deliver

the mailpiece. Although changes to

address correction service are beyond

the scope of this rulemaking, the Postal

Service is mindful of the need for

quality address corrections, especially

to addresses beyond those corrections

generated by a change of address order.

One commenter wanted confirmation

that the 100% delivery point barcoding

requirement applies to bulk outgoing

mailings and not courtesy reply,

business reply, and Business Reply Mail

Accounting System (BRMAS) mail. The

100% delivery point barcoding

requirement for letters applies only to

letter-size mailings entered as

Automation First-Class Mail or Standard

Mail. Under Classification Reform,

BRMAS mail will continue to be

required to bear a ZIP+4 barcode

assigned by the Postal Service.

However, as part of Classification

Reform, the Postal Service does plan to

implement a requirement that, by

January 1, 1997, all reply letters and

cards included as enclosures to

Automation subclass mailings must bear

a proper facing identification mark

(FIM) and correct barcode. This would

apply to courtesy reply mail and current

non-BRMAS business reply mail. A

further discussion of this requirement is

in a later section of these comments.

One commenter requested that 5-digit

and unique ZIP+4 codes be permitted to

qualify as a delivery point barcode so as

not to limit internal sorting

opportunities. Another commenter

wanted continued acceptance of unique

5-digit and ZIP+4 barcodes at barcoded

rates, stating that software can recognize

and count these barcodes as delivery

point barcodes.

Currently, barcodes must be 11-digit

delivery point barcodes in order to

qualify for letter-size barcoded rates.

Although unique 5-digit and certain

ZIP+4 codes may represent the final

delivery point for some mailpieces, it

would not be possible to determine at

the time of acceptance whether a 5-digit

or ZIP+4 barcode was a unique barcode

or a coding error if they were permitted

in mailings. Furthermore, CASS- or

MASS-certified software is capable of

returning 11-digit delivery point

barcodes for unique ZIP Codes and

ZIP+4 codes. Accordingly, the Postal

Service plans to retain the requirement

that only 11-digit delivery point

barcodes may qualify for Automation

subclass rates for letter-size pieces.

Mailers wishing to utilize internal

sortation abilities by assigning their own

4-digit add-on codes to unique 5-digit

ZIP Codes may do so if they have the

ZIP+4 codes added to the Postal Service

ZIP+4 database. To have internal ZIP+4

codes added to the ZIP+4 database, the

mailer must develop rational internal

addresses to be matched to a particular

ZIP+4 add-on in a rational manner, and

have the address configuration and +4

codes approved by the district address

management office. There will be one

exception to the 11-digit delivery point

barcode rule: courtesy reply mail

bearing a FIM and a preapplied unique

5-digit or unique ZIP+4 barcode will be

considered to have a proper delivery

point barcode and will not be counted

as an error at acceptance. Because of the

FIM, this mail can be easily identified

at acceptance.

Four commenters indicated that

splitting their mail lists into two

separate mailstreams, one with delivery

point barcodes and one without, will

increase their mail preparation

expenses. One of these commenters was

concerned that the separate mailstreams

will slow their processes, resulting in

some mail having to be remetered. This

commenter requested that an extra day

on meter dates be given so that mailers

can use encoding systems to barcode

mail initially rejected from multiline

optical character readers (MLOCRs).

DMM P030.4.12 currently contains

procedures to allow mailers to correct

meter dates. This may be done either by

remetering the mail with a ‘‘.00’’ meter

impression in authorized locations or by

using an ink jet printer to apply the

correct meter date, city, state, and 3-

digit ZIP Code of the office of mailing,

preceded by two asterisks, above the

address and below the meter

impression. Because meter dates are

used to measure Postal Service service

performance and because mail

recipients rely on them to indicate the

date of mailing, an option of submitting

mail with a stale meter date will not be

provided.

One commenter stated that the 100%

delivery point barcoding requirement

should be deleted to prevent

nonqualifying mail from flooding post

offices at the single-piece rates. Two

commenters indicated that this

requirement will result in more residual

mail being processed at origin. One

commenter stated that the costeffectiveness of point-of-origin MLOCR

processing of nondelivery point

barcoded mail is overstated because the

Postal Service is still using

multiposition letter sorting machines

(MPLSMs). One commenter indicated

that this requirement should not be

implemented until the Postal Service is

in a ‘‘full-up’’ environment for

equipment deployment. One commenter

stated that this requirement might have

the effect of third-class mailers

removing uncodable names from their

advertising lists, resulting in decreased

revenue for the mailer and the Postal

Service. Two commenters requested that

the 100% barcoding requirement be

phased in. One commenter indicated

that 90% barcoding would be a more

realistic requirement and would be

more in keeping with the concept of

lowest combined cost.

As indicated in the comment response

section of the August 30 notice, when
66588 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

mailers mix delivery point barcoded

mail and nondelivery point barcoded

mail within the 3-digit and residual

portions of their barcoded rate mailings,

as is currently permitted, the

nondelivery point barcoded mail is

rejected from barcode sorters and must

be rerun on MLOCRs or MPLSMs. (Mail

presorted to 5-digit packages and trays

must currently be 100% delivery point

barcoded.) Requiring mailers to prepare

a separate mailing for nondelivery point

barcoded mail eliminates these extra

handlings and allows this mail to be

directed properly from the start,

resulting in more efficient Postal Service

processing. These efficiencies are

recognized in the lower Automation

subclass rates proposed under

Classification Reform. Furthermore, the

Postal Service put mailers on notice

several years ago that, in the near future,

the Postal Service would require a 100%

barcoded mailstream. Accordingly, the

Postal Service does not believe that

phasing in this requirement is

appropriate.

If the 100% barcoding requirement

results in more nonbarcoded mail

presented for OCR processing at the

origin post office, the Postal Service

believes that it has the operational

capacity to process this mail.

Furthermore, because the origin post

office will not have to OCR-process the

current volume of mailer-prepared

pieces without delivery point barcodes

(that are rejected from that plant’s

barcode sorters), there should be an

offsetting lessening of mail volume

presented to a plant’s OCRs for

processing. The fact that the Postal

Service is still using MPLSMs and has

not deployed all its planned barcode

sorting equipment does not negate the

operational advantages for the majority

of plants where MLOCRs and barcode

sorters are in place. The processing

efficiencies that the Postal Service will

gain from a 100% barcoded mailstream

are reflected in the lower rates proposed

for the Automation subclasses. In return

for the lower rates proposed for

Automation subclass mail, mailers will

have to perform the additional work of

separating nondelivery point barcoded

mail and presenting it as a separate

mailing under different subclass

requirements. If mailers remove

uncodable names from their address

lists, it is not certain that net revenue

will be lost by either the mailers or the

Postal Service. It is probable that many

addresses for which delivery point

barcodes cannot be obtained would be

undeliverable. If sent as Standard Mail,

these pieces would not be delivered. If

sent as First-Class Mail, these pieces

would add costs to the Postal Service to

determine the delivery point and

forward the mail to that point or return

the pieces as undeliverable-as-addressed

mail.

One commenter wanted to know

whether 98% barcoding would be the

actual requirement when tolerances for

mailer errors are taken into

consideration, and another commenter

wanted to know the error tolerance

level. In terms of tolerance for mailer

error, at least initially, it is planned that

Automation subclass letter mail will be

subject to the current business mail

entry unit acceptance procedures. If

pieces in the sample selected during

verification of Automation subclass

mailings are found not to bear a delivery

point barcode, these pieces will be

counted as errors. When the acceptable

tolerance for all presort errors is

surpassed, the mailer will be given the

same two choices currently available:

(1) Take the mailing back, correct it, and

resubmit it to the Postal Service; or (2)

pay additional postage at the

appropriate rate for the proportion of

the mailing found to be in error during

the verification process.

One commenter requested that the

Postal Service provide delivery

performance data to all mailers so that

they can measure process changes. This

comment is beyond the scope of this

proposed rule and will not be addressed

here.

b. Courtesy and BRM Barcoded

Envelopes

Seven commenters had questions or

cited concerns about the proposed

requirement that courtesy and business

reply letters or cards included in an

Automation First-Class or Standard

mailing must be automation-compatible

and bear a FIM and a correct barcode for

the address to which the piece is

returned.

One commenter said that this new

requirement was unneeded, reasoning

that business reply mail does not pose

a major problem because the Postal

Service provides automationcompatible, camera-ready addresses for

mailpieces and also places restrictions

on how reply mail can be used. Four

commenters questioned the relationship

of enclosed pieces to host pieces. One

questioned whether requirements for an

enclosed First-Class piece are relevant

to an outgoing third-class piece because

the processing costs are independent. A

second commenter asked why a

barcoded return piece could disqualify

an outgoing piece and also questioned

the Postal Service’s ability to administer

the rule. This commenter and one other

said that they were confused about the

requirements concerning barcodes that

appear through a window. Another felt

that the requirement is content-based in

nature.

Other concerns were also raised. For

example, one commenter was of the

opinion that the proposal penalizes the

wrong party when a client has a mailing

that contains ‘‘partner’’ reply pieces for

which printing and return postage is

paid by a third party. An owner of a

lettershop said that his customers

should have a choice whether to

barcode reply pieces. A state agency

said that it is not possible for

government agencies using courtesy

reply mail to stock and insert the

number of different preprinted

envelopes that would be required by

this rule. The commenter went on to say

that software would have to be

developed and, if the proposal were

adopted, the lead time needed before

implementation would have to be long.

Two commenters whose concerns

pertained to the timing of the

requirement agreed with the Postal

Service’s proposal for a phased

implementation. One commenter urged

the Postal Service to remove the

requirement that the barcode ‘‘match’’

the address on the reply piece because

the printed address plays no role in the

delivery of an automation-compatible

reply piece. This commenter indicated

that flexibility is needed when business

growth requires more than one

fulfillment location for the same

business entity.

The Postal Service is retaining its

proposal that reply letters and cards that

are included within either letter-size or

flat-size mailpieces entered as

Automation First-Class and Standard

mailings must be automationcompatible and bear a FIM and a correct

barcode for the reply address. In

addition to the customer convenience of

a reply vehicle, increasing the use of

barcoded reply vehicles is expected to

keep postage rates down by making this

mail more efficient to process.

Moreover, because Automation mailers

have the demonstrated ability to prepare

automation-compatible barcoded

mailpieces, they should be able to

prepare barcoded reply pieces with

ease.

The Postal Service recognizes that

mailers will need to work with their

customers, and possibly modify their

contracts with advertisers and others to

ensure that this requirement is met. To

allow time for this and for utilization of

existing reply mail stock, the Postal

Service is proposing an implementation

date for this requirement of January 1,

1997. At that time, mailers of

Automation First-Class and Standard
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66589

Mail will be required to certify that

enclosed reply pieces are properly

prepared when the mailing is presented

to the post office. For this purpose, the

mailer is defined as the party who

presents the mail to the post office.

The barcode on reply mail must

match the address. A piece with a

nonconforming address could be

mistakenly forwarded to the printed

address rather than delivered to the

address represented by the barcode.

Accordingly, the mail could be

misdelivered or incur additional

processing and transportation costs if

the barcode and address do not match.

The Postal Service will provide free of

charge camera-ready positives of

appropriate FIMs and correct barcodes

for the production of reply mail pieces.

Mailers should contact their local Postal

Service account representatives or

postal business centers to obtain the

positives and additional information on

preparation standards. Obtaining the

correct barcode for mailpieces is

extremely important. The Postal Service

assigns ZIP+4 barcodes to BRMAS reply

pieces. Publication 353, Designing

Reply Mail, contains information on

correctly preparing barcoded courtesy

reply mail and business reply mail.

DMM S922 contains additional

information on business reply mail.

c. Barcoded Tray Labels

The Postal Service proposes that

Automation First-Class and Standard

Mail and Publications Service

Periodicals must be prepared with

barcoded tray or sack labels. Nine

comments were received concerning

this proposal.

One of the commenters expressed

outright support and another said that if

the Postal Service plans to provide

preprinted barcoded tray labels, they

have no problem with the proposal but

would like to have this expressly

confirmed. Five commenters wanted the

requirement to use barcoded labels

phased in or made optional. Two

commenters indicated that they would

have to buy new equipment to produce

the labels.

The Postal Service plans to require

the use of barcoded tray and sack labels

on barcoded mailings with

implementation of Classification

Reform. Use of barcoded tray labels

speeds the processing of First-Class Mail

at the ‘‘scan where you band’’ step of

the presort breakdown operation.

Barcoded labels will also be used to sort

trays of Standard Mail at BMCs. Finally,

barcoded tray labels will be an integral

part of the planned tray management

system. Barcoded tray labels are

currently being scanned on existing tray

management systems at several plants.

The Postal Service will supply

barcoded tray and sack labels.

Customers must complete Form 1578–B

and submit it to the business mail entry

unit to order barcoded labels from the

Postal Service. The labels will be

delivered in approximately 6 weeks.

Alternatively, mailers having a personal

computer and modem can obtain free

Passport software from the Postal

Service to order labels directly. In

addition, the Passport system allows

mailers to print barcoded labels on

demand if they use a Monarch 9425,

Monarch 9445, or Intermac 3000 printer.

The Passport system also includes free

updates to the DMM labeling lists.

Passport software or further information

about Passport may be obtained from

the National Customer Support Center

at (800) 238–3150.

3. Letter Mail

a. Automation (Barcoded) Carrier Route

Rates

The Postal Service is proposing to

limit Carrier Route Automation rates to

ZIP Codes where mail will be sequenced

either manually or by a carrier sequence

barcode sorter (CSBCS). Four

commenters opposed the limits on

eligibility for Carrier Route Automation

rates. Two of these commenters believed

that this requirement should be

removed because it seemed to represent

the inability of the Postal Service to

provide necessary equipment on a

national basis. One commenter was

concerned that the Postal Service is

penalizing mailers based on the

geography of the mailings lists,

something the mailer cannot change.

The limits on the availability of

Carrier Route Automation letter rates are

necessary for efficient Postal Service

processing. For an increasing number of

5-digit ZIP Code areas, the Postal

Service sorts mail to delivery point

sequence (DPS), the sequence in which

carriers deliver the mail, using two

passes on delivery barcode sorters

(DBCSs). Where this takes place, the

carrier does not have to sort this mail

manually into delivery or walk

sequence, which saves carrier in-office

time. At postal facilities where DPS

processing is being performed, it is to

the Postal Service’s advantage to have as

much mail as possible DPS processed

on the automated equipment. Currently,

at 5-digit ZIP Code areas for which DPS

processing on DBCSs has been

implemented, all mailer-prepared

carrier route and walk-sequence

presorted letter mail received with

barcodes is processed on DBCSs rather

than directed to carriers for manual

sequencing. Carrier route and walksequence sorted letter mail without

barcodes is directed to MLOCRs for

application of barcodes and subsequent

DPS processing. In many cases, this

process results in the Postal Service

backflowing mail from a delivery unit to

the place where the DBCS or MLOCR is

located. Thus, there is no additional

value provided to the Postal Service by

mailer presortation to carrier route or

walk-sequence versus a 5-digit

presortation for automation-compatible

letter mail at destinating DBCS sites.

Carrier route discounts are based in

part on steps avoided by the Postal

Service during processing. Carrier route

presorted mail needs only the final step

of sortation into the sequence of carrier

delivery. When the Postal Service

sequences mail using DBCSs at general

mail facilities (GMFs), presortation by

the mailer to carrier route groups is not

needed. Therefore, for those 5-digit ZIP

Code areas sequenced on DBCSs,

presortation to carrier routes by the

mailer saves no processing steps for the

Postal Service and is no longer going to

be either permitted or encouraged by a

discount. Accordingly, even though this

process means that Automation

Barcoded rates will be based in part on

geography, the Postal Service will not

give reduced rates for mail preparation

that provides the Postal Service no

value. Therefore, under Classification

Reform, Carrier Route Automation rates

will not be provided to barcoded carrier

route mail at those 5-digit ZIP Code

areas where DPS sequencing is

performed on DBCSs. This is not a

matter of the inability of the Postal

Service to provide necessary equipment

on a national basis. Rather, it is at those

places where the Postal Service has

deployed DBCS equipment and has

implemented DPS processing that

carrier route rates will be restricted.

CSBCSs are smaller barcode sorting

machines that also sequence mail to

delivery point. However, mail must

already be sorted to the carrier route

level before it can be processed on a

CSBCS. Therefore, it will still be useful

for the Postal Service to offer carrier

route discounts for barcoded mail that it

sorts on CSBCSs and for mail on carrier

routes that are sequenced manually.

One of the commenters indicated that

matching mail to a list of places where

Carrier Route Automation rates can and

cannot be obtained is an additional

processing step and therefore a financial

burden to mailers, particularly when the

Postal Service plans to revise the list

periodically. Matching mailing lists

with a list of ZIP Codes where Carrier

Route Automation rates are not
66590 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

available should not be a significant

burden to mailers. This list will be

provided to software vendors and

mailers as part of the City/State file

provided with the CRIS and ZIP+4

database updates. It will be up to each

mailer to make the decision whether the

level of discount is worth the expense

of preparing the mail in this manner.

Two commenters asked for the

expected list. One requested that the list

be broken down by 3-digit ZIP Code

areas and the relative volume of

addresses for each ZIP Code. The

preliminary list available at this time,

printed as part of this notice, is grouped

by 3-digit ZIP Code and then in

ascending numeric order by 5-digit ZIP

Code. This list of ZIP Codes where the

Carrier Route Automation rates are not

available has also been placed on the

Postal Service Rapid Information

Bulletin Board System (RIBBS). Mailers

will need to match their address lists

against the list of ineligible ZIP Codes

to determine their own levels of

qualification. When doing so, however,

mailers should also keep in mind that

this preliminary list does not represent

the list of ineligible ZIP Codes that will

be in effect at the time of

implementation. The list will change as

barcode sorting equipment is deployed

to the field and DPS processing is

implemented. Information about the

City/State file that contains the eligible/

ineligible ZIP Code information and a

printed list of these ZIP Codes will be

provided in the final rule.

Two commenters were concerned

with the update frequency. One

commenter opposed updates as frequent

as monthly and suggested that the list of

5-digit areas for which Carrier Route

Automation rates are available should

be provided on the CRIS files. One

commenter simply wanted information

on how frequent the updates will be and

how the information will be provided.

As indicated above, information on the

ZIP Codes where these rates will/will

not apply will be identified in the Postal

Service City/State product. Updates to

the ZIP Codes where carrier route rates

are available for letters will occur with

the same frequency that CRIS and ZIP+4

databases are updated. Mailers will be

required to incorporate this information

into their mailings no more than 90 days

before the date of mailing using a

current City/State file.

b. 150–Piece/Full Tray Requirement

Fourteen commenters voiced concern

over the proposal to require 150 pieces

per 5-digit or 3-digit ZIP Code

destination to qualify for 5-digit or 3-

digit Automation barcoded rates for

letters.

The proposed mailing standards in

this notice reflect the Postal Service’s

desire to maintain a consistent standard

of 150 pieces per rate qualification level

for 5-digit and 3-digit Automation

subclass letter rates. However, the Postal

Service recognizes that this might be an

issue for some Standard mailers. As

noted below, several commenters

pointed out that some Standard mailers

may experience a rate increase as a

result of Classification Reform because

of the higher 150-piece qualification

standard and the fact that not all 5-digit

ZIP Codes may qualify for carrier route

rates. Other commenters have argued

that pieces in a physically full tray

should qualify for the rate. Although the

rules in this notice reflect retention of

the 150-piece qualification standard,

based on the mailer comments

discussed below, the Postal Service is

seeking additional information on the

impact of allowing a physically full tray

to qualify for rates as an alternative to

the 150-piece standard. The Postal

Service is asking that affected mailers

provide information on the thickness of

various mailings that they produce and

might wish to qualify under a physically

full tray eligibility standard. Because of

the desire not to reduce the number of

pieces to a destination more than

necessary, mailers would likely have to

physically fill a 2-foot tray to qualify for

a rate if a physically full tray rule were

implemented. Also, in the interest of

making it easy to verify such mailings,

documentation listing each tray in the

mailing along with the number of pieces

contained in each tray would likely be

required if such a rule were

implemented. The Postal Service is

asking that mailers who want a rate

eligibility standard based on physically

full trays provide additional information

indicating how they will be affected as

part of their comments to this notice.

Particularly, information is sought about

the usual thickness of pieces, how many

can be put in a tray, whether the mailer

has the ability to prepare full 2-foot

trays, whether the mailer can or cannot

provide overflow trays, and what type of

documentation can be provided. A

discussion of all the comments follows.

Nine commenters requested that the

requirement be changed from 150 pieces

to 150 pieces or a physically full tray.

One commenter indicated that different

qualification levels are needed for FirstClass Mail and Standard Mail because

Standard Mail is inherently thicker than

First-Class Mail. One commenter

indicated that accommodating MLOCR

users by imposing the 150-piece rule

unfairly penalized Standard mailings

that can meet full tray requirements

with fewer than 150 pieces. Another

commenter argued that because 150

average-weight Standard Mail pieces

cannot fit into a 1-foot tray, the Postal

Service should adopt a ‘‘full tray’’

requirement instead of its proposed 150-

piece qualification. However, this

commenter did not recognize that this

thicker mail does not need to be

prepared in 1-foot trays because both 1-

and 2-foot trays may be used to prepare

letter mailings and overflow trays are

permitted.

The 150-piece minimum represents

the average number of letter-size pieces

that can fill 3⁄4 of a 1-foot tray. Under

the proposal, the 150-piece average is

applied uniformly to determine both the

rate qualification and the particular

sortation level of tray for presort. The

requirement applies rates to tray levels

and eliminates the preparation of

packages within full trays. The Postal

Service also desires to apply rates on an

equal basis to all mailers. Accordingly,

the application of the 150-piece

standard allows card-size or other thin

pieces to qualify for rates in the same

way that thicker pieces can qualify. The

application of a 150-piece standard with

the use of overflow trays also makes it

easier for mailers whose mailings are

made up of pieces having different

thicknesses, such as MLOCR users, to

determine when a rate qualification

level has been met, and assists such

mailers to complete a mailing statement.

The 150-piece standard also facilitates

acceptance and verification by applying

a single standard and method of

documentation to all mailings within

the subclass. The Postal Service also

expects to achieve efficiencies by having

only one method of preparing mailings

for Automation subclass letter rates for

both First-Class and Standard Mail.

Currently, there are three separate

methods for presorting barcoded letter

mail, which lead to 17 different possible

tray configurations for barcoded letter

mail. Having a single method of

preparation that requires only four tray

levels for the noncarrier route portion

will simplify postal operations as well

as mailer preparation requirements.

One third-class mailer association

stated that the restrictions on Carrier

Route Automation rate availability will

cause more mail to default to the 5-digit

and 3-digit sortation levels. This

association further commented that

because of the 150-piece minimum for

the 5-digit Barcoded rate, most of this

previously carrier route sorted mail will

fall to 3-digit Barcoded rates,

significantly increasing postage for

Automation Standard mailers. This

commenter was further concerned that

this move from carrier route sortation to
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66591

3-digit sortation would affect the service

for Standard Mail.

The rate structure for Automation

subclass letters would provide

significantly reduced rates for barcoded

mailings. Those rates are based, in part,

on more stringent preparation standards

that allow more efficient Postal Service

processing of that mail. Under the

proposed Automation Standard Mail (A)

letter rates, certain mailers could

experience a minor increase in postage

over what they pay today, assuming that

all mail not eligible for a carrier route

rate moves to the 3-digit Barcoded rate

level and that there are neither Basic

rate pieces in the mailing nor pieces

currently qualifying for 3-digit Barcoded

rates that would continue to qualify for

3-digit rates under the new standards.

However, any such potential increase

would be offset by savings from pieces

in the mailing that could qualify for 5-

digit Barcoded rates and pieces that now

qualify for 3-digit Barcoded rates and

would continue to do so under

Classification Reform. This theoretical

postage increase would also be offset by

pieces that the mailer now qualifies for

basic rates, because of a significant

decrease in the Basic Automation rates

under Classification Reform. A mailer’s

cost to prepare Automation mail is also

expected to decline because of the

elimination of package preparation in

full trays.

With reference to the concern over

degradation of service for pieces moving

from carrier route sortation to 3-digit

sortation, established postal operating

plans are designed to achieve stated

service commitments, regardless of the

level of sortation of the mail.

Two commenters who mail both Firstand third-class mail indicated that 95%

of their letter mail that now qualifies for

5-digit Barcoded rates will move to 3-

digit Barcoded rates. One commenter

indicated that 70% of his mail now

qualifying for 5-digit Barcoded rates will

move to the 3-digit qualification level.

One commenter indicated that the loss

of presort and associated discounts

could cause his company to stop

offering credit cards to their customers

due to the anticipated increase in

postage for the credit card bills. One

commenter stated the belief that if his

mail could not be sorted to qualify for

the 5-digit or 3-digit Barcoded rates, the

30-cent Retail Presort rate would apply

to the remaining pieces.

Under the Postal Service’s proposal,

delivery point barcoded First-Class and

Standard Mail that cannot be sorted into

a group of at least 150 pieces to a 5-digit

or 3-digit ZIP Code destination must be

sorted to AADC and mixed AADC trays.

This mail will qualify for a Basic

Automation presort rate. For First-Class

Mail, the rate proposed by the Postal

Service for this Basic rate mail is 3.5

cents below the rate (30.5 cents)

currently applied to barcoded residual

pieces in a barcoded rate mailing. The

proposed carrier route, 5-digit, and 3-

digit rates are also significantly lower

than the current corresponding rates.

Thus, First-Class Mail under the

scenarios presented above should

receive a reduction in postage. Standard

mailers having 95% of their mail move

from a 5-digit qualification to a 3-digit

qualification could experience a very

minor increase in postage for that

portion of the mailing, under the rates

proposed by the Postal Service.

However, that increase would be offset

by savings from the lower rate

applicable to Basic Automation

Standard letters. Standard mailers

experiencing a 70% shift in mail from

5-digit Barcoded rates to 3-digit

Barcoded rates will experience a

reduction in postage for this portion of

the mailing, and can expect an

additional reduction for the Basic rate

portion.

One commenter indicated that 90% of

his mail now qualifies for a presort rate

but after Classification Reform only 75%

will qualify, and another indicated that

his presort qualification would drop

from 90% to 40%. It is not clear what

these mailers mean by presort. As

indicated above, all pieces in

Automation First-Class and Standard

mailings will qualify for a reduced rate.

To the extent that these mailers are

describing an expected degradation

from one presort level to another, the

above analysis would apply to them.

Overall, the Postal Service believes

that the Automation letter discount

levels and preparation standards will

lower postage and preparation costs for

barcoded mailings for most mailers.

Under current Barcoded rate mailing

standards, a large percentage of mail

qualifying for 5-digit and 3-digit rates is

already prepared in full trays without

packages. Because the proposed 150-

piece requirement is based on a 1-foot

tray, these mailers should be able to

place even more mail in full 5-digit and

3-digit trays.

One commenter believed that if mail

is barcoded and all mixed together on

machines, there are no cost differences

between 10 sorted pieces and 150 sorted

pieces. This view is incorrect. When

packages for different levels of sort are

mixed together in a tray, these trays

must be emptied and the packages

sorted and retrayed before they can be

directed to the proper barcode sorting

machine. This process is not as efficient

as being able to direct an entire tray

without package handling. In return for

the lower rates being proposed, the

Postal Service expects to gain

efficiencies in its operations by

eliminating package sortation and

retraying of mail prior to directing it to

the proper barcode sorting scheme.

Currently, when trays contain presort

packages, the packages are often not

sorted by postal personnel because it is

deemed more efficient to remove the

packaging material and run the pieces in

the tray through the appropriate barcode

sorting scheme. It is for this reason that

the Postal Service proposed to eliminate

rate discounts that are based on package

preparation and to base Automation

rates instead on the sortation level of a

tray.

One commenter requested

clarification as to whether 150 pieces to

a tray level may still be trayed to that

level even if they do not fill a 1-foot

tray. Under the proposed standards

published below, 150 pieces to a

sortation level must be placed in that

level of tray. One less-than-full tray is

permitted for tray levels where the 150-

piece minimums are applied. Such

pieces must be prepared in rubberbanded packages to maintain their

orientation in the tray during transit and

handling.

One commenter requested that the

definition of a full tray currently used

in PAVE testing be added to the DMM

language of the next proposed rule.

PAVE testing currently indicates that

153⁄4 inches of mail (i.e., 3⁄4 of the

bottom inside length of a 2-foot tray) is

the minimum amount of mail for a full

tray, and that, where possible, 2-foot

trays should be further filled to contain

21 inches of mail. Upon implementation

of Classification Reform, PAVE testing

instructions would indicate that, for 1-

foot trays, 79⁄10 inches of mail would be

considered the minimum amount of

mail for a full tray and, where possible,

trays should be further filled to contain

101⁄2 inches of mail. Definitions of

standard tray sizes are provided in the

DMM language proposed in this notice

and will be included in the PAVE

instructions that mailers receive with

PAVE testing material. It should be

noted, however, that these definitions

do not relate to rate qualification

standards under the proposed rule.

c. Scheme Sortation

Ten commenters responded to the

proposal to allow or require scheme

sortation for Automation subclass

(barcoded) letters. Five of these

commenters had basic

misunderstandings of what this scheme

sortation list represents. One stated that

it was not very different from the
66592 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

current SCF sortation and asked what it

will do for his mailings. Another stated

that this list looks like the DMM L802

labeling list (an SCF list used for certain

ZIP+4 rate mailings) which means that

80% of his mail would end up in mixed

AADC trays. Accordingly, this

commenter wanted to use the current

DMM L803 labeling list (an AADC list

used for certain ZIP+4 rate mailings) to

obtain full trays to qualify for 3-digit

Barcoded rates. Two commenters

indicated that there must be at least

three different 3-digit ZIP Codes per

scheme for mailers to be able to qualify

as much mail for 3-digit rates under the

150-piece minimums as they can qualify

using the current 50-piece per 3-digit

package rules. These two commenters

indicated that the 150-piece minimum

rules should be held in abeyance until

the scheme sorts are workable in this

manner. One of the commenters

believed that the purpose of scheme sort

was to reduce the number of MLOCR or

barcode sorter pockets used by the

Postal Service to sort mail, and

suggested that a better way to achieve

this would be to scheme-sort to ADCs or

AADCs.

The 3-digit scheme list is made up of

3-digit ZIP Codes that are processed on

the same barcode sorter incoming

primary sort plan (scheme) used to sort

3-digit mail to 5-digit ZIP Codes. The

determination of which, if any,

combination of 3-digit ZIP Codes can be

sorted on the same barcode sort plan is

based on the number of 5-digit ZIP

Codes served by each 3-digit ZIP Code

and the physical limitation of the

number of bins on barcode sorters.

Therefore, it is not possible for the

Postal Service to adjust the scheme list

to cause each scheme to contain at least

three different 3-digit ZIP Codes. It is

also not possible for the Postal Service

to substitute the published 3-digit

scheme list with any of the labeling lists

suggested by commenters. The purpose

of this scheme sortation was not to

arbitrarily find a way to allow mailers

to qualify as much mail for 3-digit rates

under Classification Reform as they do

based on the current 50-piece package

minimums for 3-digit barcoded letter

rates. The purpose is to allow mailers to

prepare mail for processing in the same

manner that the Postal Service processes

it on barcode sorters (not MLOCRs) and

thereby increase their potential for

qualifying mail for a 3-digit automation

discount. As published, the scheme sort

list will allow mailers to use the total

number of pieces for any or all of the 3-

digit ZIP Codes that are combined on

the list to qualify for 3-digit Barcoded

rates. For example, ZIP Codes 068 and

069 are combined on the 3-digit scheme

list and labeled to STAMFORD CT 068.

This means a mailer having 75 pieces

for ZIP Code 068 and 75 pieces for ZIP

Code 069 could combine these pieces

into a single tray to meet the 150-piece

minimum. Without the scheme sort

option, those pieces would not be

eligible for the 3-digit Barcoded rate.

One commenter believed that the 3-

digit scheme sort should be mandatory.

Two commenters indicated that scheme

sort should be optional. One of these

indicated that use of the 3-digit scheme

sort could be an insurmountable barrier

to participation by Federal government

mailers, and the other indicated that it

should be a business decision because

many mailers have a lot of volume to

individual 3-digit areas or may not want

to upgrade software to do these

mailings. Another commenter indicated

that making scheme sort mandatory for

Automation subclass mailings means

that the same presort software could not

be used for the upgradable Retail Presort

portion of the mailing since scheme

sorts are not permitted for Retail Presort

mailings. One commenter indicated that

it only made a 1.5% difference in the

qualification levels of his mailings.

Another commenter indicated that it

would help presort qualification. One

commenter asked whether Publications

Service mailers would use the same

schemes as other classes of letter mail.

One commenter stated that he needed

the final tables for 5-digit and 3-digit

sort schemes with the next notice, or at

least before the implementation date, to

test the software that incorporates these

schemes.

Based on these comments, the Postal

Service has proposed that 3-digit

scheme sort be optional. Mailers may

use scheme sort for only those schemes

they select prior to preparing individual

3-digit trays for the remainder of the

mailing. Mailers expressing concern

over needing different software if they

add scheme sortation are advised that

they will not be able to use existing

software to sort letter mail under

Classification Reform anyway, because

the tray levels are different from current

standards, packaging is allowed only in

less-than-full trays, a residual portion of

the mailing is not allowed, and both 1-

foot and 2-foot trays must be used.

Furthermore, the sortation standards for

Retail Presort First-Class and Regular

Standard mailings are significantly

different from the Automation subclass

standards set forth in this notice.

Therefore, mailers will not be able to

use the same software to sort to these

two subclasses.

As information, the Postal Service is

currently investigating the future

provision of 5-digit scheme sorts for

barcoded letter mailings. However,

because of the volatility of 5-digit

schemes while the Postal Service is

deploying new equipment over the next

3 years, 5-digit scheme sorts will not be

available until some time after

Classification Reform is implemented.

The Postal Service is also investigating

the feasibility of providing a 3-digit

scheme sort for barcoded flat-size

mailings. If there appears to be a benefit

to scheme sort for flats, it also would

not be made available until after

implementation of the current

Classification Reform proposals.

d. Use of Trays

Eight commenters had concerns over

the standards for the use of trays for

Standard letter mail. Two commenters

wanted to use trays for letter-size

Enhanced Carrier Route Standard Mail.

One commenter wanted the option to

sack nonupgradable mail to assist

noncomputerized customers. This

commenter also indicated that for

nonautomation-compatible mail, traying

makes it impossible to achieve package

testing results. Five commenters

expressed a desire to allow sacking for

all mail except Automation subclass

letters. Three of these commenters did

not want to tray nonautomation subclass

mail because they believe that trayed

Standard Mail must be palletized. Five

commenters were concerned that

traying mail can cause a loss of cube in

trailers with a resulting impact on their

qualifying for destination entry

discounts.

The August 30 notice erroneously

implied that mailers could not tray

letter-size Enhanced Carrier Route

Standard Mail. It had been previously

agreed that Enhanced Carrier Route

mailers would have the option to tray

letter mail. Since that time, the Postal

Service has reconsidered this position.

Because the Postal Service prepares

letter mail in trays, it is important that

all mailer-prepared letter mail be trayed.

Accordingly, the proposed DMM

standards set forth in this notice would

require that all letter mail, including

Enhanced Carrier Route and Periodicals

letters, be prepared in trays. It should

also be noted that, although encouraged,

it is not required that Standard letters

prepared in trays be palletized. Mailers

will be permitted to bedload trays of

letter mail. However, if a mailer wants

to palletize Standard letter mail, the

mail must be prepared in trays on

pallets, with one exception. If, as

described in the section on flat-size

mail, the letter-size piece also meets the

definition of an automation-compatible

flat, and a portion of the mailing job is
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66593

mailed at the Automation subclass rate

for flats, all the pieces in the mailing job

may be prepared in packages placed

directly on pallets if all pieces pay the

applicable rates as flats. However, the

amount of Regular Standard Mail

meeting the size standards for both

letters and flats that can be prepared as

packages on pallets is limited to 10% of

the mailing job for reasons described in

the section on flats. The Postal Service

acknowledges that trayed mail can

sometimes fill trailers more quickly than

the same amount of mail prepared in

sacks, and that the number of pieces

that can be placed in a trailer might

affect a mailer’s decision whether to

prepare mail for destination entry

discounts. However, trays are the most

efficient method of containerizing letter

mail for the Postal Service. Because the

Postal Service now uses trays for lettersize mail in its internal operations, it is

proposing to require that mailers submit

all letter-size mailings in trays for

consistency and efficiency. The

requirement to use both 1-foot and 2-

foot trays will ensure the most efficient

use of trailer space under the traying

environment. The Postal Service does

not understand the comment that

traying would affect the ability to

monitor package testing results.

e. Use of Both 1–Foot and 2–Foot Trays

The Postal Service is proposing that

for all trayed letter-size mailings, a

combination of full 2-foot and 1-foot

trays must be used in a manner that

results in the fewest possible trays.

Eleven comments were received

concerning this proposed requirement.

Four commenters stated that this

requirement will increase their

handlings or cause problems in their

production lines. One of these

commenters indicated that this will

create another mailstream, which,

added to the 100% barcoding

requirement for the Automation

subclass, would result in four separate

mailstreams. One commenter stated that

he hoped this requirement could be

canceled if it did not work. Another

commenter stated that he did not want

to handle two sizes of trays. Two

commenters indicated that this

requirement is not supported by current

software, including software for

MLOCRs. Two commenters were

concerned about the availability of the

appropriate size trays. One of these

commenters requested clarification, for

software writing purposes, of what to do

if tray sizes are not available. The other

commenter indicated that shortages of

any type of tray will complicate

processing when the mailer has software

programmed to handle two sizes. One

commenter indicated that he did not

understand the need for this

requirement. Three commenters asked

how a stable pallet can be built when

there is a mix of two different size trays.

One commenter asked whether a 1-foot

tray could be placed upside down on a

pallet next to a right-side up 1-foot tray

to allow the two trays to take up the

same amount of space as a 2-foot tray.

The 150-piece minimum quantity to

qualify for Automation subclass letter

rates is based on the preparation of a 1-

foot tray so that mailers may more easily

qualify for those rates. That quantity per

tray also is intended to yield more full

trays to direct destinations, thus

lessening any loss of presort to the

Postal Service. In order to increase the

number of direct trays to sortation

destinations for all letter mailings, the

proposed DMM language would require

use of both 1-foot and 2-foot trays for all

mailings of letter-size pieces in all

reformed subclasses. However, the

Postal Service does not want to increase

its potential number of tray handlings

by allowing a mailing to be prepared

entirely in 1-foot trays, nor to increase

transportation costs by shipping in more

less-than-full 2-foot trays. Accordingly,

the requirement to use both 1-foot and

2-foot trays where appropriate is

considered necessary by the Postal

Service. Under the proposed rule,

mailers would be required first to fill as

many 2-foot trays as possible before

filling 1-foot trays.

The Postal Service recognizes that this

requirement will cause mailers to make

major changes to their production lines

and to maintain a supply of both 1-foot

and 2-foot trays. It is believed that

presort software developed to

accommodate the Classification Reform

presort structure will include mail

documentation that provides

information about the tray size to be

used and where tray breaks occur. If this

type of software is used, it may not be

necessary to create two separate

production lines for the different tray

sizes. The Postal Service anticipates an

increased need for both sizes of trays

and has purchased additional supplies

while continuing to review the need to

purchase still more. If local shortages

develop for a particular size tray,

mailers will have to use the trays

provided the Postal Service. This may

require working out individual mailing

solutions locally.

Mailers must use their own judgment

when building pallets of trays

containing both sizes of trays. The

elimination of the proposal to require

separate layers of trays on pallets for the

different subclasses should facilitate

building stable pallets. The requirement

to place destination delivery unit trays

on the top of the pallet has also been

eliminated. Accordingly, mailers may

build pallets of trays solely by the

weight of the trays (heavier trays must

be on the bottom) and the pallet

destination. Mailers will not, however,

be permitted to place a 1-foot tray

upside down on a pallet next to a rightside-up 1-foot tray because this could

damage the mail.

f. Banding Material

(1) Automation Compatible Mailings.

One commenter asked whether mail in

overflow and less-than-full trays must

be prepared with rubber bands. The use

of rubber bands will be required for

automation-compatible pieces, i.e., for

Automation First-Class or Automation

Standard Mail, upgradable Retail Presort

First-Class and upgradable Regular

Standard Mail, automation-compatible

Publications Service Periodicals, and

barcoded Regular Periodicals. Letter

mail placed in less-than-full trays must

be prepared with rubber bands or elastic

strapping. In addition, because of their

small size and their likely becoming

unfaced even in full trays, card-size

pieces in the previously named

automation-compatible mailings must

be prepared with rubber bands or elastic

strapping in all trays. For barcoded

carrier route rate mailings, separator

tabs must be used to separate the carrier

route groups within 5-digit carrier

routes trays. If a 5-digit carrier routes

tray is less-than-full, rubber bands or

elastic strapping must be used. For

Regular Periodicals barcoded letter

mailings, separator cards must be used

to delineate presort groups in all full

trays. Pieces in less-than-full mixed

AADC trays in any mailing must be

prepared with rubber bands or elastic

strapping. Plastic strapping and string

will not be permitted for these

automation-compatible mailings. When

prepared, packages should be between 4

and 6 inches thick.

(2) Other Mailings. For Enhanced

Carrier Route letter mailings, mailers

may use separator cards or rubber bands

or other permissible banding material to

delineate carrier route groups within

full 5-digit carrier routes trays. In lessthan-full 5-digit carrier routes trays,

separator cards will not be permitted

and banding material must be used. For

nonupgradable mailings, separator cards

are not permitted; banding material

must be used for packages in these

mailings.

g. Overflow Trays

One commenter asked whether

overflow trays will be required to
66594 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

contain a minimum number of pieces;

they will not.

One commenter noted that overflow

trays are allowed for AADC trays in the

Automation letters subclass but not in

Retail Presort mailings and asked

whether this inconsistency was an error.

This difference is not an error. Within

the Automation subclass, AADC trays

are prepared based on the 150-piece

minimum standard. The Postal Service

wants to apply this standard

consistently for all trays of barcoded

mail except the last level of tray.

Allowing an overflow tray when the

150-piece standard is applied makes

presort simpler and facilitates

documentation and acceptance of that

mail. For Retail Presort First-Class Mail,

there is just one rate, and pieces at all

tray levels are trayed based on filling 2-

foot and 1-foot trays without regard to

the 150-piece standard. To make

Regular Standard Mail traying more

consistent with First-Class Retail Presort

preparation, the Postal Service has

determined that pieces at the ADC and

AADC (upgradable) tray level will also

be trayed based on filling 2-foot and 1-

foot trays without regard to the 150-

piece standard and the need for

overflow trays.

h. Request for Elimination of AADC

Trays

One commenter requested that, for

Automation subclass letters, the lessthan-full AADC tray be replaced with

mixed AADC trays. Another commenter

indicated that sorting to AADC or mixed

AADC destinations is difficult to do in

a manual operation.

Overflow trays are provided for

certain tray levels to permit mailers to

qualify all mail to a sortation level, once

the 150-piece minimum has been met,

when rates are based on the level of tray

in which a piece is placed. Overflow

trays are also provided to ensure that

the mail is presorted to the finest level

possible. For this reason, when overflow

trays are allowed at required levels of

sortation, such as the 3-digit and AADC

sortation levels of Automation subclass

mailings, preparation of overflow trays

will be required. The Postal Service

recognizes that preparation of ADC

packages and trays and preparation of

AADC trays may be more difficult to do

in a manual operation than in an

automated one. However, ADCs and

AADCs are the next stop for

transportation and in-plant processing

of pieces that are not sorted to the 3-

digit destination plant level. The Postal

Service believes that preparing mail to

this level of sortation is necessary and

appropriate to qualify for the basic

presorting rates. It should also be noted

that, with the exception of current

Presorted First-Class and Carrier Route

sorted mail, today’s bulk mailings

require preparation of AADC, ADC, SDC

or state trays and, in some instances,

corresponding packages.

i. Request for Elimination of Required

Tray Sortation Levels

One commenter indicated that tray

sortation levels should not be required

and that the size of the mailing should

determine the breakdown levels.

The proposed presort rates requested

in the Classification Reform case are

based on presorting mail to the finest

extent possible. Accordingly, mailers

will be required to prepare 3-digit trays

any time there are at least 150 pieces for

a 3-digit ZIP Code before preparing

AADC and mixed AADC trays. It is not

permissible to begin sortation at the

AADC level and qualify for the

proposed rates.

j. Grouping of Pieces in AADC and

Mixed AADC Trays

One commenter stated that for ‘‘piece

sequencing’’ requirements the Postal

Service needs to have a minimum

mailing in mind, such as 10,000 pieces

nationwide, before it insists that the

mailer breakdown a mailing, and that

the cost to prepare this mail is not worth

the discount. Another commenter

wanted clarification as to why 3-digit

groupings within AADC trays need not

be in numeric order. This commenter

anticipated acceptance problems.

Presort discounts are based on mailers

performing presort to the finest level.

For automation letter mail, presort to 3-

digit level is required before preparing

mail to the AADC level. In order to

determine whether a 3-digit tray should

be made, the mailer must first group

pieces by 3-digit levels. Therefore, it

should not be a burden for mailers to

maintain those groupings when placing

that mail in AADC trays. This grouping

also helps the Postal Service verify that

mail has been sorted correctly (although

it is still possible to verify mail that is

not grouped in numeric order).

Therefore, Postal Service is not

requiring that 3-digit groups be placed

in ascending numeric order, although it

is encouraging mailers to do so. It

should also be noted that, within mixed

AADC trays, in addition to grouping by

3-digit or 3-digit scheme, as applicable,

the 3-digit/scheme groups must be

further grouped by AADC area. Few

acceptance problems are anticipated

because acceptance personnel will

receive training on the new sortation

and acceptance procedures. The Postal

Service believes that the Basic rates

proposed for First-Class and Standard

Mail should encourage mailers to

prepare the mail in this manner.

However, it is the mailer’s decision to

determine whether this preparation

would be less expensive than mailing

such pieces at single-piece rates.

k. Pallet Preparation

Four commenters requested

clarification as to whether letter mail

prepared on pallets for different

subclasses could be combined on the

same pallets with a single mailing

statement and corresponding

documentation as allowed for flats on

pallets. It is proposed that letter mail of

different subclasses prepared in trays

may be presorted to the same pallets,

excluding 5-digit pallets. Trays of

automation-compatible letter mail

(Automation Standard and upgradable

Regular Standard Mail, barcoded

Regular Periodicals, and automationcompatible Publications Service

Periodicals) must be placed on 5-digit

pallets separate from nonautomation

mail in the same mailing job because it

is more efficient for the Postal Service

to move whole pallets directly to where

the mail is processed. Pallets of

automation-compatible mail may be

processed at postal facilities different

from facilities that process pallets of

nonautomation-compatible letters. In

many cases, pallets of automationcompatible mail are broken down at

different locations in the same plant, or

if barcoded carrier route mail, the

pallets are sent directly to the postal

facility where a CSBCS or DBCS is

located. When trays are palletized in

this manner, they may be reported on a

single mailing statement with the same

corresponding documentation as

allowed for palletized packages of flats.

l. Carrier Route Rate Eligibility

One commenter agreed with the

Postal Service’s promise to consider

allowing carrier route rates for routes

that have fewer than 10 delivery stops.

The Postal Service has decided to

propose that such mail may be prepared

to qualify for the Saturation Enhanced

Carrier Route rates if it meets the

applicable density and documentation

standards.

m. Enhanced Carrier Route Traying

Requirements

One commenter asked, in response to

the June 29 notice, whether letter-size

Enhanced Carrier Route mail would

require packaging in full direct trays.

The Postal Service deferred an answer

to this question until completion of the

DMM standards. Under the presort

standards set forth in the proposed rule,

Enhanced Carrier Route letter mail is
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66595

prepared in full 2-foot and/or 1-foot

carrier route trays. Mail that cannot be

placed in full carrier route trays must be

placed in 5-digit carrier routes trays,

which may be less than full when

necessary.

n. Machinable Addressing/Upgradable

The Postal Service has proposed

optional presort requirements for Retail

Presort First-Class and Regular Standard

Mail that meets the Postal Service

criteria of ‘‘upgradable’’ mail.

(Upgradable mail is mail that can be

processed on Postal Service MLOCRs.)

Four commenters voiced concerns about

the requirement for a machine-printed

address on a mailpiece before it could

be considered upgradable.

One commenter opposed the

proposal, arguing that presort bureaus

will have to separate their automation

reject mail on the basis of physical

characteristics and then prepare it under

two sets of rules. This commenter

requested that mailers be given an extra

day to attempt to barcode the

automation rejects, without redating

metered mail, in order to increase the

barcoded volume. By adopting this

approach, according to the commenter,

mailers will be positioned to benefit

from soon-to-be-available technology

that will make it possible to barcode

more rejected mailpieces. In much the

same vein, a government agency said

that the requirement is too restrictive

and that several federal agencies have

purchased encoding systems in order to

place barcodes on typewritten and

handwritten mail.

The proposed DMM standards specify

that preparation of mail under the

provisions for upgradable mail is

optional. Accordingly, First-Class and

Standard mailers may prepare all their

mail not qualifying for the Automation

subclass under the basic preparation

standards for the corresponding Retail

Presort or Regular rates. Naturally,

mailers are encouraged to apply

delivery point barcodes to such pieces

using CASS-certified encoding systems

and thereby enter as many pieces as

possible as Automation First-Class or

Standard Mail. However, for the reasons

set forth in the preceding discussion of

100% barcoding, the Postal Service

cannot allow mail to be presented with

stale meter dates. The current

procedures for allowing mailers to print

a new meter date will remain in effect

for all mail, including upgradable and

automation-reject pieces. The proper

subclass marking must also appear on

these pieces.

o. Machinability

One commenter asserted that the

Postal Service will not achieve its

objective of encouraging more

automation-compatible mail unless it

relaxes machinability standards to allow

more mailers to prepare automationcompatible mail.

The Postal Service cannot

spontaneously relax machinability

standards. Such standards are based on

the capabilities of automated mail

processing systems and the type of mail

that automation equipment is able to

process.

p. Tray Sleeving and Strapping

The Postal Service proposed that

mailings of Automation letter mail be

both sleeved and strapped by the mailer,

and that trayed letter mail in other

reformed subclasses be sleeved by the

mailer. Five commenters responded to

this proposal. One commenter

expressed wholehearted support on the

condition that the mailer, not postal

employees, perform the associated tasks.

One commenter strongly recommended

that where all pieces in a mailing

originate and destinate in the delivery

area, sleeving and banding of trayed

letter mail should not be required. This

commenter wants continuation of the

existing provision in DMM M033.3.7

(that allows local exception to the

sleeving requirement when all pieces in

a mailing originate and destinate in the

delivery area of the same SCF). Another

commenter contended that local post

offices should be able to determine

when sleeving and strapping are

required based on mailing destinations.

A third commenter wanted a phased

implementation to have time to order

and install equipment needed for

sleeving and strapping. A federal

government agency voiced concern

about requirements for stocking, storing,

and using many different types of

equipment.

The Postal Service plans to require

sleeving and strapping of all bedloaded

trayed mail under all reformed

subclasses, with the exception of mail

entered at a postal facility that

destinates within the service area of that

facility. Mail transported without first

being sleeved is susceptible to spillage

and damage during transportation and

handling. A strap around the tray is also

necessary to maintain the integrity of

the tray and its contents during

transportation and handling. For

example, because trays of Periodicals

and Standard Mail sorted in a BMC

move on belts and down chutes during

mechanized distribution, sleeves that

are not strapped to trays could slide off

and the contents of the tray could spill.

Trays transported by air are handled in

many different ways and also need to be

strapped to maintain their integrity.

Because local mail is not subject to the

same type or amount of transportation

as other mail, an exception may be

made for the strapping and sleeving of

this mail. Local mail that destinates

within the service area of the postal

facility where it is entered may be

prepared without sleeving and

strapping, if prior written approval is

obtained from that facility’s manager.

For palletized mailings, sleeving will

be required but strapping will be

optional for mail on 5-digit, 3-digit, and

SCF pallets, if those pallets are wrapped

with stretchable or shrinkable plastic

wrap to maintain their integrity during

transportation and handling, because

these pallets remain intact until

reaching the destination plant or

destination 5-digit delivery unit. Trays

on other levels of pallet will be required

to be both strapped and sleeved.

q. ACT Tagging

The Postal Service proposed that

mailers apply ACT tags to trays of

Automation First-Class letters. Six

commenters responded to this proposal.

Of these, one supported the proposal as

long as mailers, not postal employees,

did the work of preparing the tags. The

remaining five commenters either had

serious reservations or were strongly

opposed to this proposal if it applied to

trays of nonlocal letter- and flat-size

mail. One of the five strongly opposed

tagging nonlocal mail, stating that it was

burdensome and difficult to comply

with due to time-sensitive airline flight

schedules, and that the rates proposed

for the Automation subclass do not

reflect this added worksharing

requirement. Another commenter

expressed the view that requiring ACTtagging of all Automation subclass letter

mail trays adds little value and should

not be required at this time. The

commenters believed that the proposal

should be optional until a method can

be developed and implemented so that

mailers could access a database of

accurate postal air contract

transportation and flight data for ACT

tags.

Based upon the comments, the Postal

Service has determined to remove the

proposed requirement for ACT-tagging

of mailings. The Postal Service is also in

the process of revising its internal

systems to replace the ACT tags with the

‘‘Scan-Where-You-Band’’ process.
66596 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

4. Flat-Size Pieces

a. General

Under Classification Reform, the large

majority of flat-size pieces will be

mailed as either Standard Mail or

Periodicals. The discussion of

comments dealing with Periodicals is

contained in a separate section of this

notice. Preparation of packages on

pallets under the rules in DMM M040 is

the preferred method of preparing flatsize pieces. The nonpalletized

preparation requirements for Standard

Mail flats under Classification Reform

will continue to require preparation of

packages placed in sacks. The package

and sack levels will be 5-digit, 3-digit,

ADC, and mixed ADC, except for

Enhanced Carrier Route flats which will

be prepared in carrier route packages of

10 or more pieces placed in carrier route

or 5-digit carrier routes sacks. The

current 125-piece/15-pound minimum

sacking criterion will apply to flats

under Classification Reform where

minimum sack volumes are prescribed.

The sortation for Automation flats

differs from current preparation

requirements in that SCF packages and

sacks are eliminated, and there is no

separate preparation of residual mail.

For Automation flats, ADC and mixed

ADC packages will be combined with 5-

digit and 3-digit packages within ADC

and mixed ADC sacks. The sortation for

First-Class flats will require 5-digit, 3-

digit, ADC, and mixed ADC sortation in

both packages and flats trays.

b. Mail Meeting Standards for Both

Letters and Automation-Compatible

Flats

Of the 49 commenters who responded

to the August 30 notice, four

commented on issues related to flats.

With only one exception, those

commenters had questions or comments

focusing on pieces whose size

dimensions meet the size standards for

both letters and automation-compatible

flats. This type of mail is often referred

to by mailers as ‘‘fletters.’’ These

comments were of essentially the same

nature as those submitted in response to

the June 29 notice.

Two commenters wanted the Postal

Service to develop options to allow

mailers to prepare mailpieces that meet

both the letter-size standards and the

automation-compatible flats standards

either in trays or in packages on pallets.

As indicated in the section on letter

mail, the Postal Service handles letter

mail in trays and, for operational

efficiency, wants all mailer-prepared

letter mail placed in trays. Therefore,

mailers of such pieces always have the

option of preparing them as letter-size

mailings in trays or, for Standard Mail,

in trays on pallets. Mailers of such

pieces may choose to prepare one

portion of their mailing job as letter mail

and another portion of their mailing job

as Automation flat mail. The Postal

Service also recognizes that many

mailers having pieces that meet the

dimensions for both letters and

automation-compatible flats, and who

prepare a portion of their mailing jobs

for the Automation rates for flats, would

have more efficient mail preparation

operations if allowed to prepare an

entire mailing job in the same manner,

particularly when preparing that mail as

packages on pallets. Therefore, when

mailers of these so-called ‘‘fletters’’ mail

part of a mailing job at the Automation

rates for flats and prepare that mail as

packages on pallets, the Postal Service

will allow the entire mailing job, which

may also include Enhanced Carrier

Route mail and Regular mail, to be

prepared as packages on pallets if no

more than 10% of the total number of

pieces in the mailing job are claimed at

Regular rates and if those pieces are

claimed at Regular rates for nonletters,

since the mailing is prepared in a

manner applicable to flat-size pieces.

This 10% limit on the number of

Regular pieces in such a mailing is

designed to permit a small part of a

mailing job to be prepared in this

manner while minimizing the amount of

these letter-size pieces on pallets; as

stated earlier, letter-size pieces are more

efficiently handled by the Postal Service

as trayed letter mail. If the percentage of

such letters-size pieces exceeds 10% of

a mailing job, it must be prepared and

presented as a separate mailing under

the standards for letter mail. Mailers

who prepare mail in sacks or trays must

prepare that mail in the manner

appropriate to its processing category, as

defined in DMM C050, i.e., mail

meeting both letter-size and automationcompatible flats dimensions may be

sacked and otherwise prepared as a flat

only if mailed as part of a mailing at an

Automation rate for flats.

c. Revisions to Automation-Compatible

Flats Criteria

One commenter stated that the Postal

Service should allow pieces that can be

processed on FMS 1000 flat-sorting

equipment to be eligible for barcoded

rates when that equipment is retrofitted

with barcode readers. This commenter

further indicated that the Postal Service

should allow letter-size catalogs that can

be processed on FSM 1000s to be

eligible for Automation rates for flats,

thereby allowing mailers to avoid the

tabbing requirements associated with

the Automation rates for letters.

The FSM 1000 machines were not

intended to replace the FSM 881s but to

handle pieces that cannot be processed

on them. Therefore, the FSM 881

machinability requirements, reflected in

the current standards in DMM C820 for

barcoded rates for flats, will continue to

be the basis for barcoded rates for flats

for some time, including when

Classification Reform is implemented.

Letter-size pieces that do not meet the

current criteria for AutomationCompatible flats will be considered

letters under Classification Reform and

will have to be prepared under the

standards for letters in DMM C810 and

DMM C840 to obtain Automation letter

rates.

d. Dimensions of Trays

One commenter requested that the

dimensions of flat trays be provided so

mailers can program how much mail

can be placed in these trays. The inside

bottom dimensions are 143⁄4 inches long

by 103⁄4 inches wide. Their depth is 8

inches to the handhold and 111⁄4 inches

to the top. This information will be

included in both the DMM and in the

instructions provided with PAVE testing

material.

e. Copalletization and Commingling

No comments were received regarding

this issue. The Postal Service is

retaining the position set forth in the

August 30 notice that, for packages

prepared on pallets, packages from

different Standard Mail subclasses

(Automation, Enhanced Carrier Route,

and Regular) may be placed on the same

pallets, and no physical separation of

the packages on the pallets by rate

category will be required. At the pallet

breakdown operation, the Postal Service

will sort the packages to containers for

the proper transportation or in-plant

processing operation.

The Postal Service also erroneously

indicated in the August 30 notice, that

it would allow mailers to combine

packages from different mailings in the

same sack. Combining packages of

different mailings in the same sack does

not make operational sense for the

Postal Service. Sack labels identify the

type of mail contained in the sack so

that the Postal Service can direct it to

the proper in-plant operation. Enhanced

Carrier Route sacks may be sent directly

to the 5-digit ZIP Code for carrier casing,

whereas barcoded flats will be sent to a

barcoded flats sorting machine. Regular

mail may be sent to manual distribution

operations. Because combining this mail

together in sacks would not allow the

Postal Service to direct the mail to the

proper operation, combining packages
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66597

from different mailings in the same sack

will not be permitted.

f. Flats Mail in Trays

No comments were received regarding

this issue. The Postal Service is

retaining the position set forth in the

August 30 notice that First-Class flats

will be prepared in flat trays and

Standard Mail flats will be prepared in

sacks. A commenter to the June 29

notice questioned the rationale for this

policy. The Postal Service plans to

initially limit the use of trays to FirstClass flats to allow for a more gradual

change to a future operating

environment in which all nonpalletized

flat mail will be prepared in trays.

Currently, the Postal Service processes

First-Class flats in trays. Generally, flat

trays are better handled at GMFs and

airmail facilities (AMFs) (where the

Postal Service has tray handling

systems) than sacks, which are more

amenable to processing at bulk mail

centers (BMCs). When barcoded flat

mail is distributed on flat sorting

machines using the barcode, there are

instances where the flat mail is

dispatched in flat trays to the next

handling or destination regardless of

class. Therefore, as part of the transition

of all classes of flats mail to tray

preparation, allowing automationcompatible (barcoded) flat mail in trays

would be the likely next step, but this

will not take place until after

implementation of the current

Classification Reform proposals.

g. Last Package Rule

A question concerning how to label a

mixed ADC sack containing only a 5-

digit package was asked in response to

the June 29 notice. The Postal Service

deferred an answer to this question until

completion of the DMM standards.

Under the presort standards set forth in

this proposed rule, a 5-digit package left

over after filling all possible 5-digit, 3-

digit, and ADC sacks will be placed in

a sack bearing a mixed ADC sack label.

h. 3–Digit Schemes

No comments were received regarding

this issue in response to the August 30

notice. The Postal Service is retaining

the position that, while a 3-digit scheme

sort for flats may be investigated at a

later date, it will not be implemented

with Classification Reform.

5. Addressing

a. AIS Product Cycle

Concurrent with Classification

Reform, the Postal Service is proposing

to increase the frequency at which it

updates all of its AIS Products, such as

ZIP+4 and CRIS. This change would

increase the frequency of required

mailer updates to address matching

systems. Because this change will affect

all AIS products and must be applied

universally, it will impact all mailers

using AIS products for preparing

mailings, not just those mailing in the

reformed subclasses.

The proposal to increase the

frequency of AIS product updates is

designed to improve the currency of the

data that is used during the matching

process and reflects the significant

advancements in list management

technology that have been made since

the original product cycle was

developed. Now that the Postal Service

is experiencing more rapid change in

address information and carrier route

codes, it has become critical that mailers

update their data files more frequently.

Under this proposal, the frequency of

AIS product releases would increase

from quarterly to bimonthly. The Postal

Service also proposes to eliminate

inconsistencies in the implementation

dates of new product releases. These

currently range from 45 days with ZIP+4

products to 75 days for some CRIS

products. Under this proposal, all

products would have to be put into use

within 45 days of the release date of the

product update. There are no plans to

increase the frequency with which

ZIP+4 code or delivery point code

matches must be reprocessed from the

current ‘‘within 12 months of the

mailing date’’ standard for any of the

unreformed subclasses.

Because these changes are systemic

and because it would be costly and

confusing to maintain two different sets

of product update frequencies, the

Postal Service proposes to apply these

changes to all affected mailings,

regardless of whether that mail will also

be affected by Classification Reform. For

example, carrier route codes would be

updated more quickly with the

initiation of bimonthly CRIS releases

and with the reduction in the

permissible implementation period from

75 to 45 days. This would apply to both

reformed and unreformed subclass

mailings.

Although these changes in AIS

product frequency were previously

planned and could have been proposed

independently, the Postal Service has

chosen to propose to implement them

with the implementation of

Classification Reform to consolidate

changes to mail preparation standards.

b. Carrier Route Updates

Eight comments were received about

the Postal Service’s proposal that

mailings at carrier route rates

incorporate carrier route codes updated

within 90 days prior to the date of

mailing using certified software. One

commenter suggested that the Postal

Service eliminate the requirement for

certified software, indicating that it

limited the creativity of mailers in

applying the carrier route codes to their

mail. The Postal Service requires the use

of certified software to verify the

accuracy of the matches and to provide

documentation of the time and age of

the information being used to apply

carrier route codes. The certification

process verifies the results of address

matching, not the means by which it

was achieved. Thus, there are no limits

to the creativity that may be applied to

the matching process if the result

represents the correct carrier route code

for the address.

Four commenters suggested that the

coding date should be increased to 120

days, whereas two other commenters

approved the proposal to increase the

frequency of ZIP+4 matching to 90 days.

The Postal Service has no plans to

increase the frequency of ZIP+4

matching at this time. Carrier route

assignments are more frequently

changed to accommodate the

operational needs of the Postal Service

to balance carriers’ workload. Thus, the

Postal Service believes that the 90-day

coding standard is reasonable. However,

it is not the Postal Service’s intent to

require mailers to update their carrier

route codes if no more current source of

information is available. The Postal

Service believes that the most current

data available should be used in

assigning carrier route codes. If new

data files are not available, mailers

should continue to use the existing

route assignments until new AIS

products have been released by the

Postal Service.

c. Move Updates

Seventeen comments were received

concerning the proposal to require FirstClass bulk mailers to update the

addresses of their customers who have

moved within 6 months prior to the

mailing date. Several mailers seemed

confused about the exact class of mail

to which this standard applies; it would

apply only to Retail Presort and

Automation First-Class mailings.

The Postal Service believes that the

methods currently available to provide

customers with updated address

information offer a wide range of

options that can meet the needs of

mailers at a reasonable cost. For

example:

(1) Use of the endorsement ‘‘Address

Correction Requested’’ means that the

mailpiece will be returned to sender

with the new address information
66598 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

affixed. This service is provided at no

additional charge to the mailer. The

mailer can then update the address

information and, if it so desires, use a

new envelope to mail the piece to the

new address.

(2) Use of the endorsement

‘‘Forwarding and Address Correction

Requested’’ means that the mailpiece is

forwarded to the new location and the

Postal Service sends a hard copy notice

to the mailer with the new address

information. Each such notice costs

$0.50 and can be used to update the

mailer’s addresses.

(3) Use of Address Change Service

(ACS) provides the mailer with an

electronic notice of new address

information instead of hard copy. ACS

can also be used on mailings other than

First-Class to qualify those addresses in

the mailing list that were used for Retail

Presort and Automation First-Class

mailings. Electronic notices cost $0.20

each and can be obtained on a variety

of electronic media. Mailers may

determine the frequency with which

they use the ACS endorsement and

participant code if the mailer can certify

that each address in a First-Class

mailing has been updated for customer

moves within 6 months prior to the

mailing.

(4) Use of National Change of Address

(NCOA) processing service can update

mailers’ address lists with corrected

address information prior to a mailing.

Mailers determine how frequently they

process their address lists.

Two commenters stated that they are

unable to use the current methods, and

two other commenters said that the

services were too costly. None of these

commenters provided specifics in

support of their statements. The Postal

Service incurs both costs to rehandle

undeliverable-as-addressed mail and

service delays when mail must be

redirected to a new location. It is in the

best interests of the Postal Service and

mailers to improve deliverability and

reduce costs. The options cited above,

including the ‘‘no fee’’ Address

Correction Requested endorsement,

provide flexibility to mailers in meeting

the proposed standard.

Six commenters asked that

implementation of the requirement be

postponed to allow time to adjust and

obtain move updates. The Postal Service

recognizes that many mailers will need

to revise their addressing systems to

accommodate move updating. Thus, the

Postal Service will begin the move

update address qualification process at

the time of Classification Reform

implementation, but will not condition

the eligibility of First-Class bulk

mailings on complete move update

qualification until 6 months after

Classification Reform implementation,

or January 1, 1997, whichever is earlier.

The Postal Service also wants to avoid

creating a semiannual ‘‘crunch’’ of

demand for NCOA and ACS services

that might occur if move update was

implemented at the same time as

Classification Reform. Some mailers

may need to experiment with several

options for move updating, such as the

impact of the two different

endorsements, to determine which

option makes the best business sense for

their operations. Some will have to

learn to use electronic update systems,

and others will need to use up stocks of

envelopes that do not bear an

endorsement. The ‘‘ramp-up’’ period

should give all concerned customers

sufficient time to decide which update

method to use, obtain NCOA matching

services, if appropriate, implement

internal system changes to accept

electronic move update information,

and work with their internal customers

or presort customers to obtain full

compliance.

Several commenters also asked that

implementation of the proposed move

update standard be postponed

indefinitely until other methods have

been approved to do move updating,

such as the Multiline Forwarding

System (MFS). The Postal Service does

not believe that such an open-ended

delay is warranted, given the wide range

of current options. However, the Postal

Service is encouraged by the progress

currently being made toward

implementation of MFS. The Postal

Service has been working with vendors

of commercial MLOCRs on the MFS

project since June 1995. Test mail has

been successfully processed by several

vendors to determine the accuracy of

the matching processes. The next step is

testing ‘‘live’’ mail in a production

environment. The project plan for MFS

is on track, with operational issues now

under review. As a result, the Postal

Service expects that MFS will be

available before the end of 1996, but

that outcome is not certain at this time.

The Postal Service plans to continue

working on the development of MFS

with MLOCR users through the Mailers

Technical Advisory Committee and the

Multiline Users Group. Moreover, as

marketplace demands create a need, the

Postal Service will also consider

expanding the range of options in the

existing services, for example, by

additional notification options in ACS

beyond those currently available.

Five commenters asked whether their

in-house address correction centers, to

which they have devoted significant

resources, might be certified as meeting

the move update standard. For those

mailers who believe that their lists are

up to date, the use of the ‘‘Address

Correction Requested’’ endorsement

should have little or no impact on their

business practices because they are

mailing to the most current address of

their customers. The simple and

straightforward use of the endorsement

would meet the proposed standard with

no difficulty, would need be applied to

all addresses on the list only within 6

months prior to mailing, and

expenditures would be limited to the

costs associated with preprinting the

endorsement on mailing envelopes. The

current endorsement options would be

an effective approach to meeting the

proposed standard for lists that are well

maintained by a mailer’s move

correction processes. In the future, the

Postal Service may consider the

establishment of ‘‘move update

certification’’ processes for specific

types of lists or businesses. The Postal

Service is interested in evaluating other

options that mailers suggest to meet the

move update standard if unique

situations exist that preclude the use of

the current solutions.

Three other commenters asked

whether a mailer was required to use

the information provided from postal

address correction processes and apply

it immediately to their address lists.

They asked whether the notification

could serve as a trigger to the company

to initiate an inquiry with the customer

about correcting address information.

Four commenters indicated that various

state and federal government agencies

believe that they are prohibited from

using corrections provided by the Postal

Service. In most cases, mailers are

expected to update their mailing

addresses promptly. However, the

Postal Service recognizes that, in some

industries, there are legally-mandated

limits on the address that may be used

in certain customer communication. For

example, one commenter noted that, in

a number of states, notices of

shareholder meetings must be sent to

the address ‘‘in the corporation

records.’’ Given the concerns expressed

by these mailers, the Postal Service has

decided that in circumstances where

clearly demonstrated legal constraints

limit a mailer from using address

changes provided by the Postal Service,

an individually-approved alternative

process will be acceptable to meet the

move update standard. Alternative

process approval would be granted on a

case-by-case basis, and the legal

limitation would need to be clearly

identified. In this process, mailers

would receive address change
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66599

information from the Postal Service in

any of the currently prescribed manners.

This would be followed by a prompt

mailer-initiated direct mail contact with

the customer, requesting a signed

verification of the address change. For

example, the mailer could provide a

preprinted barcoded business reply card

that the customer signs and returns.

Address information could then be

updated in the mailer’s records prior to

the next mailing cycle.

d. Uniform Placement of Address

Elements

During the comment period, the

Postal Service decided to remove

uniform placement of address elements

from consideration as a proposed

address quality standard. The Postal

Service took this action in response to

extensive mailer concerns regarding the

details of the proposal and its potential

adverse impact on rate eligibility.

e. Line of Travel

One commenter asked whether the

line-of-travel (LOT) sequencing

requirement applied only to flat-size

pieces. Because LOT sequencing can be

beneficial for casing of all carrier route

mail, the proposed standard will apply

to letters, flats, and merchandise

samples prepared with detached

address labels in Basic Enhanced Carrier

Route mailings, and to all Publications

Service pieces except for those pieces

that are presented in a mailing of

automation-compatible Publications

Service barcoded letters.

One commenter stated that the

requirement would be easy to meet,

whereas two other commenters stated

that it would be difficult to maintain

and would be an unnecessary burden.

The Postal Service has had assurance

from the mailer and vendor

communities that this requirement is

not an onerous burden. The update of

sequence information could be done

through any of the established

sequencing methods or through use of

the newly-developed Line-of-Travel

product, which has been available to the

mailing industry since June 1995.

Mailers who are interested in obtaining

the Line-of-Travel product should

contact the National Customer Support

Center at (800) 238–3150 for

subscription information. Continuing

update of sequence information will

occur with the same frequency that

carrier route codes are updated.

Four commenters stated that there

were many operational variables in their

production lines and questioned

whether exact delivery order or reverse

order would be equally effective. The

Postal Service will identify mailers

whose mailings are frequently in the

reverse order and deal with them on an

exception basis.

Three other commenters asked

whether LOT could apply to High

Density mail. Although the Postal

Service believes that LOT sequencing

would accomplish most of what walk

sequencing will do for High Density

mail, the Classification Reform proposal

specifies walk sequencing for High

Density mail. Therefore, LOT is not an

acceptable sequencing option to qualify

for High Density rates.

f. 5–Digit ZIP Code Verification

The Postal Service proposed to

require a certification by the mailer that

the 5-digit ZIP Codes on addresses in a

Retail Presort First-Class, Regular

Standard, or nonautomation-compatible

Publications Service Periodicals mailing

have been checked for accuracy within

12 months prior to mailing. One

commenter stated that because ZIP Code

verification was quick and easy, out-ofdate ZIP Codes should not be allowed

access to presort rates. Another called

the proposed verification costly and

intrusive on business activity. The

Postal Service believes that accurate ZIP

Codes are vital to ensuring consistent,

timely delivery service. Moreover, the

use of a correct ZIP Code is currently a

requirement for the affected groups of

mail. Those mailers who are unwilling

to verify the correctness of the ZIP

Codes they apply to mailpieces will not

be allowed access to postage rates that

require ZIP Code presortation.

Two commenters asked what some of

the approved methods of verification

might be. The Postal Service has

previously stated, ‘‘A recommended

checklist of possible ZIP Code

verification options for address lists that

are not computerized could be signed as

a part of the verification process. Items

to appear on the list might include

manual verification using the most

recent Postal Service ZIP Code

directory, a survey of the addressees

currently in the address list to inquire

about changes to ZIP Code information,

participation in the current manual list

correction service (DMM A910), use of

a service provider to verify ZIP Code

information, and use of approved

software.’’

Other options might include the use

of electronic look-up services such as

those available on the Postal Service

home page on the World Wide Web and

other bulletin board look-up services

using certified address matching

software. Mailers will be expected to

identify the method used to verify the

ZIP Code information and sign a

certification of verification. Mailers will

have 3 months from the date of

Classification Reform implementation to

verify the accuracy of their 5-digit ZIP

Code information. In addition, as new

techniques for ZIP Code verification are

developed, they will be added to the list

of acceptable methods for verification.

6. Periodicals

a. Overview

Periodicals, like today’s second-class

mail, is designed for newspapers and

other periodical publications. Under

Classification Reform, all current

categories of authorization would

remain (general, requester, institutions

and societies, foreign, and state

departments of agriculture). Current

subclasses would also be retained and

Publications Service, a new low-cost

subclass, would be added.

No substantive change to Preferred

Rates Periodicals (In-County, Classroom,

Nonprofit, Science-of-Agriculture zones

1–2) is proposed in the current

Classification Reform case. The

provision will also be retained that

prescribes payment of Regular rates for

advertising that exceeds the 10%

limitation.

Publishers may mail at only one

subclass of outside-county rates for each

publication: Preferred (when

applicable), Regular, or Publications

Service. The publication must follow

the same basic standards as today, i.e.,

it must be formed of printed sheets and

published from a known office of

publication at a regular frequency of at

least four times per year. Current

requirements by authorization category

continue to apply. General publications

must have a minimum of 50% paid

circulation and contain no more than

75% advertising in one-half the issues

published during a 12-month period.

The publisher must maintain a list of

subscribers. Likewise, requester

publications must have a list of

requesters/subscribers, with a minimum

50% of the circulated copies either

requested or paid for by the recipient.

Advertising in requester publications

may not exceed 75% in any issue.

A notable change proposed for the

Regular subclass pertains to the presort

levels: Basic, 3/5, and Carrier Route

would replace current levels A, B, and

C, making the presort structure for

Regular Periodicals more consistent

with other classes. The new 3/5 rate

replaces the current Level B3 and B5

rates. Mail presorted to all 3-digit

destinations (not just to unique 3-digit

destinations) will qualify for the 3/5

rates. Another minor change renames

the current 125 walk-sequence rate as

High Density.
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Three primary criteria must be met to

qualify for Publications Service: (1) at

least 75% of the mailed volume must be

paid (for general publications) or paid or

requested (for requester circulation); (2)

at least 30% of the content in each issue

must be nonadvertising matter; and (3)

at least 90% of each issue must be

presorted in prescribed volumes to

carrier route, 5-digit, or 3-digit

destinations. An outside circulation

audit is also required.

Each issue of a Publications Service

periodical must have at least 30%

nonadvertising content and at least 75%

of the mailed circulation (excluding

copies claimed at in-county, foreign,

First-Class, Priority Mail, or Express

Mail rates) must be sent to paid

subscribers (or requesters, depending on

the category of authorization).

Publications that fail to meet the

nonadvertising content requirement are

assessed a 40% surcharge of the

applicable postage for that issue. If a

publication fails to meet the 75% paid/

requester standard, its authorization to

mail at Publications Service will be

revoked.

The Postal Service has determined

that the outside circulation audit will be

used only to validate compliance with

the proposed 75% paid/requested

circulation requirement. The outside

auditor will not be responsible for

confirming the advertising/editorial

ratio. To ensure compliance and reduce

the amount of material reviewed before

mail acceptance, the Postal Service will

include on the mailing statement a

certification block for the publisher’s

signature, validating that the

publication meets the 30%

nonadvertising requirement. If the

Postal Service determines that an issue

exceeds 70% advertising, the publisher

will be given ample opportunity to

demonstrate compliance with the

requirement before any penalty is

assessed.

At least 90% of each issue must be

presorted to 3-digit, 5-digit, or carrier

route destinations. Copies count toward

the 90% criterion if they are part of a

minimum of 24 addressed pieces for a

3-digit destination, all properly

presorted to carrier route, 3-digit, or 5-

digit destinations in packages of six or

more addressed pieces each. Any

combination of six-piece or larger

packages to these destinations is

acceptable (e.g., 18 pieces to a carrier

route and six copies to a 5-digit, both in

the same 3-digit area). Publications that

fail to meet the 90% standard are

assessed a 40% surcharge of the

applicable postage for that issue.

For the purposes of the 90% criterion,

an ‘‘issue’’ will be considered to consist

of all copies in the mailed volume that

are mailed within that ‘‘window’’ of

time during which the main file and

most supplemental mailings for a

particular title are deposited with the

Postal Service. The mailing ‘‘window’’

includes all copies, regardless of cover

date, mailed during that period. To

ensure that the entire mailed volume of

a publication is considered, all mailings,

including ‘‘supplementals,’’ will be

counted.

Publications may be better able to

meet this density requirement by

comailing, including the comailing of

Publications Service flats with Regular

Periodicals. To administer the 90%

criterion in a comailing situation, the

Postal Service proposes to look at the

sortation of the individual title within

the comailing. The copies reported on a

single mailing statement will not have

to meet the 90% criterion. The

qualifying pieces in the comailing are

added to the qualifying pieces in the

main file and any qualifying pieces in

supplemental runs that were not

comailed. The final qualifying

percentage is derived by dividing the

total number of qualifying pieces by the

total number of mailed pieces.

In a comailing, the 40% penalty

would apply to the publication that fails

to meet the density requirements, not to

all other comailed publications. While

firm packages are considered a single

addressed piece for presort and postage

purposes, each copy in a firm package

counts individually toward the 90%

standard.

Carrier route, nonbarcoded, and

barcoded mail may be mixed on the

same pallet, and 5-digit and ZIP+4

barcoded Publications Service flats may

be combined in the same package. This

is discussed further in the analysis of

comments on Periodicals.

In addition to the requirements for

nonadvertising content, circulation to

paid/requester addresses, and density,

all automation-compatible Publications

Service mail (except carrier route rate

flats) must bear a barcode. All pieces

must bear at least a 5-digit barcode and

no less than 85% of the pieces must

bear a ZIP+4 or delivery point barcode.

If the piece is not machinable, barcoding

is not required. Although the carrier

route portion of the mailing will count

toward the 85% criterion, it will not

have to be barcoded. The 85% criterion

optimizes the proportion of pieces that

can be given automated processing. To

the extent firm packages are amenable to

such handling, it would not be relevant

to the objectives of the 85% criterion if

the component copies inside the firm

package were barcoded. Therefore, the

85% criterion will be applied to

consider the number of addressed

pieces in the mailing, not the total

number of copies.

Compliance with the 85% criterion

will be based on the entire mailed

volume of the issue, encompassing all

editions from all sources. Publishers

will be responsible for providing the

supporting information if requested by

the Postal Service.

Additional ‘‘bundled’’ requirements

pertaining to such issues as addressing,

sortation, and containerization are

detailed in the proposed DMM

standards in this notice.

To mail at Publications Service rates,

a periodical must first be authorized

Periodicals mailing privileges in one of

the existing categories of authorization.

To apply for Publications Service, the

publisher must submit a separate

application (and pay an additional $305

fee) and initiate an outside circulation

audit. Once authorized, all outsidecounty copies of the publication, which

are not sent as Express Mail, Priority

Mail, or First-Class Mail, must be

mailed at Publications Service rates

exclusively, unless the publication

voluntarily abandons its authorization.

If the publication abandons the

authorization or the Postal Service

revokes it, the publisher must wait 1

year to reapply. Authorization to mail at

Publications Service rates does not

affect eligibility for in-county rates.

Publications currently authorized to

mail at second-class rates will not be

required to mail in a pending status if

it can be shown to meet the 75% paid

or requested criterion and an

application to mail at Publications

Service rates is filed. Mailings will be

accepted at Publications Service rates

subsequent to the application being

filed. If the Postal Service denies the

application or the publisher abandons

it, a revenue deficiency will be assessed

for the difference between the amount

paid at Publications Service rates and

the amount due at Regular rates.

Publications not authorized secondclass mail privileges may also apply for

Publications Service rates. A publisher

would be required to file an application

for a Periodicals authorization and pay

a fee of $305. A separate application for

Publication Service rates must also be

filed and the publisher must pay an

additional $305 fee. These applications

may be filed simultaneously or

separately as desired by the publisher.

Under these circumstances, the

publisher will be required to mail under

established pending procedures (i.e., the

publisher must deposit funds at the

applicable third- or fourth-class rates).

When the applications are approved, the
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publisher will be entitled to an

appropriate refund.

b. Comment Analysis

A total of nine comments were

received concerning the implementation

standards for Periodicals described in

the August 30 notice. Of that number,

five comments expressed general

disapproval of Classification Reform as

it pertains to Periodicals and three were

generally favorable; such comments are

beyond the scope of this rulemaking and

are not addressed here. Two of the three

commenters who expressed general

satisfaction with Classification Reform

as it pertains to Periodicals, and two

other commenters, offered specific

comments concerning various issues.

These comments are discussed below.

(1) Automated Processing of Flats.

One commenter reiterated that the

widespread availability of automation

equipment capable of handling all types

of second-class flats is crucial to secondclass mailers. The commenter

recommended that the Postal Service

immediately undertake to develop a

nationwide plan to increase automation

capacity for flat-size mail. As explained

above in the discussion on flats,

although the Postal Service would like

to be able to process all types of flats on

automated equipment, new machines

will not be purchased until the current

ones have been properly positioned for

optimum utilization.

(2) 75% Paid Subscriber/Requester

and 30% Nonadvertising Requirements

for Publications Service. Regarding the

requirement that 75% of all mailed

copies of Periodicals authorized to mail

at Publications Service rates must be

sent to paid subscribers/requesters (as

appropriate), two commenters requested

that all mailed newsstand copies

(regardless of the number returned or

destroyed) be considered paid

circulation. This request has been given

full consideration. Although the Postal

Service believes that it is appropriate to

account for newsstand copies sent

through the mails, it is both inaccurate

and inconsistent with past postal policy

to consider all such copies paid. Rather,

the Postal Service will continue to

require publishers to maintain records

to distinguish between sold and unsold

newsstand copies. Those copies mailed

to newsstands that are eventually sold

will count toward the 75% paid

subscriber/requester requirement.

One commenter addressed the

proposal to require an outside auditor to

review the proportion of mailed copies

of a Publications Service periodical that

are sent to paid subscribers/requesters

to verify compliance with the 75% paid

subscriber/requester requirement. This

commenter supported the Postal Service

decision not to require that an outside

auditor confirm that the 30%

nonadvertising minimum per issue has

been met, but instead to accept a written

certification by the publisher (included

as part of the mailing statement

prepared for each issue).

(3) Commingling of 5–Digit and ZIP+4

Barcoded Publications Service

Periodicals. One commenter supported

the Postal Service’s decision to allow

the commingling on pallets of all types

of packages of both Regular and

Publications Service Periodicals. Two

commenters believed that the volume of

5-digit barcoded pieces is relatively

small in second-class today and,

therefore, warrants allowing mailers to

combine 5-digit and ZIP+4 barcoded

pieces in the same package.

Once a publication is authorized to be

mailed at Publications Service rates, all

mailed copies (except those mailed at

in-county rates or as Express Mail,

Priority Mail, or First-Class Mail) must

be prepared according to the required

sortation for this subclass. Unlike FirstClass and Standard Mail where pieces

not qualifying for one subclass may be

mailed in another, no copies of an

authorized Publications Service

periodical may be mailed as Regular or

outside-county Preferred Periodicals.

For this reason, the Postal Service

decided that setting a 100% ZIP+4 or

delivery point barcoding standard for

automation-compatible Publications

Service periodicals would be difficult

for publishers to achieve; therefore, the

current ‘‘85–15’’ barcoding standard is

retained.

Under today’s second-class standards,

which allow 15% of a nominally ZIP+4

barcoded mailing to bear a 5-digit

barcode, publishers may combine ZIP+4

and 5-digit barcoded pieces in packages.

The Postal Service believes that

combining such mail in packages

continues to be appropriate and will

allow this preparation for Publications

Service periodicals. However, the Postal

Service will continue to study the issue

and may require other packaging

standards at a later date if combining

ZIP+4 barcoded and 5-digit barcoded

pieces in the same package has a

negative operational impact as the

barcoded flats mailstream expands.

(4) Presort and Comailing. The Postal

Service will allow the comailing of

Regular and Publications Service flatsize Periodicals. To enable publishers to

comail efficiently, the Postal Service has

determined (and has so stated in earlier

notices) that it will align the sortation

standards for Regular and Publications

Service flats. This decision is reflected

in the proposed DMM standards

presented below. For flats, the only

difference between Regular and

Publications Service sortation

requirements is that mail entered at a

Regular Barcoded rate must be prepared

as a separate mailing meeting a separate

85% barcoding standard as discussed in

section A of this proposal.

Although the majority of Periodicals

is flat-size mail, many publications are

produced in letter-size format. The

preparation standards proposed for

automation-compatible letter-size

Publications Service mail will mirror

the proposed standards for Automation

First-Class and Standard Mail letter-size

pieces, with the exception that a 6-piece

package minimum will be applied to

Publications Service carrier route

sortation rather than the 10-piece

minimum applied in First-Class and

Standard Mail. In addition, new

sortation criteria for nonautomationcompatible letters have been added for

Publications Service to require

packaging and traying of pieces.

Preparation of presorted packages is

necessary for nonautomationcompatible mail for efficient Postal

Service processing.

These two Publications Service lettersize sortations are significantly different

from current letter sortation

requirements for second-class mail.

Because these sortation requirements

affect rate eligibility, the Postal Service

will not propose the alignment of

standards for Regular and Publications

Service letter-size mail. Consequently,

comailing will not be allowed for

Regular and Publications Service lettersize pieces.

New sortation criteria have been

developed for barcoded letters and for

nonbarcoded letters at Regular rates.

These new sortation criteria reflect the

new standards for preparation of all

letter-size mail in trays and for tray

sortation levels that will be

implemented with Classification reform,

while allowing such mail to continue to

qualify for presort and barcoding rates

under the same qualification criteria as

today.

C. Presort Summary Guide

The following charts summarize the

presort requirements for reformed

subclasses. They do not reflect every

presort requirement but are a guide to

the major presort points contained in

the DMM standards presented in the

latter part of this notice.

BILLING CODE 7710–12–P
66602 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66604 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66606 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66608 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66610 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66612 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66614 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66616 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

BILLING CODE 7710–12–C
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D. Automation Carrier Route Rates—

Ineligible Zip Codes

First-Class and Standard Mail (A)

Automation Carrier Route and

Publications Service Carrier Route

lettersize mail may not be prepared to

the 5-digit ZIP Code destinations listed

below. This list will not appear in the

DMM but this information will be

available in the City/State file. Printed

information may be published

periodically in the Postal Bulletin.
66618 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
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66630 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66631

BILLING CODE 7710–12–C
66632 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

E. Summary of DMM Changes

The DMM revisions shown below are

based on the general proposals

described in the two advance notices of

proposed rulemaking published earlier

this year by the Postal Service, on which

comments have been received and

considered accordingly. Revisions are

described by module, based on the

organization and content of DMM Issue

49 (September 1, 1995). This list is

intended as an overview only, and

should not be viewed by commenters as

defining every revision that they may

need to examine.

A (Addressing). Revisions in

nomenclature are made throughout.

A930 is revised to update the list of

available AIS products, and A950 is

revised to show the more frequent

product cycle for address coding

products.

C (Characteristics and Content).

Revisions in nomenclature are made

throughout. C100 is amended to reflect

the proposed new size limits for pieces

eligible for card rates. C300 and C400

are revised and merged into new C600

to recognize the merger of third- and

fourth-class into Standard Mail. Terms

used in various standards are defined in

new sections added to C810, C820, and

C840.

D (Deposit, Collection, and Delivery).

Revisions in nomenclature are made

throughout. D300 and D400 are revised

and merged into new D600 to recognize

the merger of third- and fourth-class

into Standard Mail.

E (Eligibility). Revisions in

nomenclature are made throughout.

E100 is amended to reflect the

reorganization of First-Class Mail

(excluding Priority Mail) into the Retail

and Automation subclasses (whose

specific standards are detailed in E130

and E140, respectively). E200 is

renamed to recognize the renaming of

second-class mail as Periodicals. E210,

E250, and E270 are revised minimally.

E220 is added to present the standards

for Publications Service. E230 is

reorganized to present the presort

standards for Regular and Publications

Service in E231 and E232, respectively,

and the standards retained for Preferred

Periodicals in E239. E240 is similarly

revised to present the automation

standards for Regular publications in

E241 and those brought forward from

existing rules for Preferred publications

in E249. (Standards for automationcompatible Publications Service mail

are included in the basic eligibility

criteria in E220; there is no separate

automation rate for Publications

Service.) E300 and E400 are revised and

merged into new E600 to recognize the

merger of third- and fourth-class into

Standard Mail. E610 presents basic

standards for all Standard Mail in E611,

for former third-class mail, now called

Standard Mail (A) in E612, and for

former fourth-class mail, now called

Standard Mail (B) in E613. E620

contains standards for single-piece rates:

single-piece Standard Mail (A) (E621),

parcel post (E622), bound printed matter

(E623), Special Standard Mail (currently

special fourth-class mail) (E624), and

Library Mail (E625). E630 presents

standards for bulk rates: Regular Basic

and 3/5 (E631); Enhanced Carrier Route

Basic, High Density, and Saturation

(E632); basic and carrier route bulk

bound printed matter (E633); 5–Digit

and BMC Presorted Special Standard

Mail (E634); and, consolidated but

without substantive change from current

standards, for all existing Nonprofit

rates (E639). E640 contains standards for

automation-based rates: Automation

Carrier Route, 5-Digit, 3-Digit, 3/5 (for

flats), and Basic (E641); and, also

consolidated but essentially unchanged

from current standards, for all existing

Nonprofit rates (E649). E650 and E670

are revised minimally. To avoid an

anomalous and confusing situation in

which current weight limits for ‘‘heavy

letter’’ barcoded mail would be applied

in the context of proposed rules (under

which different weights would actually

apply), current DMM standards that are

in place for the ‘‘heavy letter’’ test (59

FR 65967–71, December 22, 1994), have

been revised for this rulemaking to

reflect the DMM provisions that would

become effective if the test changes are

made permanent in the future. Use of

these standards in this proposed rule

does not constitute an explicit or

implicit decision on the test or the

acceptability of heavy letter mail under

any circumstance; any announcement in

that regard will be made separately.

F (Forwarding and Related Services).

Revisions are confined to changes in

nomenclature.

G (General Information) and I (Index

Information). No revisions are made.

L (Labeling Lists). Revisions in

nomenclature are made throughout.

L003 is added to list 3-digit ZIP Code

areas that are combined for scheme

sortation (only to listed destinations)

under specific new preparation

standards. To reflect the wider use of

the ADC network, current L101 is

relocated and renumbered as L004. To

reflect other revisions to distribution

networks that have eliminated SDC,

state, and mixed states preparation,

L201–203, L701–704, L706, and L707

are deleted.

M (Mail Preparation and Sortation).

Revisions in nomenclature are made

throughout. Current M011 is

renumbered as M012, and new M011 is

added to consolidate basic definitions of

terms used throughout other mail

preparation instructions. M012 and

M013 are also updated to include

revised formats for optional

endorsement lines and carrier route

information lines and to allow the

inclusion of rate markings in both.

M020 is amended to provide more

consistent package preparation

standards for other-than-Nonprofit mail.

M033 is revised to add consistent

standards for tray preparation for letterand flat-size mail and to offer enhanced

information about sack and tray

preparation. M040 is amended to

incorporate revisions to pallet

preparation standards set forth in a final

rule expected to be published on

December 20, 1995. M041 is revised to

present general standards for pallets and

their use. M045 reorganizes the

standards in current M042, M043, and

M044 as amended by the cited

rulemaking, to present the revised and

consolidated standards for palletized

mail preparation. M050 is revised to

include information about line-of-travel

sequencing. M100 is reorganized, with

the standards for Retail Presort located

in new M130. Preparation standards for

nonautomation Regular and

Publications Service Periodicals are in

new M210; existing standards for

nonautomation Preferred Rate

Periodicals are consolidated in M290.

M300 and M400 are revised and merged

into new M600 to recognize the merger

of third- and fourth-class into Standard

Mail. Regular Standard Mail (A)

preparation is detailed in M610,

Enhanced Carrier Route standards are in

M620, and existing standards for

Standard Mail (B) (current fourth-class

mail) and for Nonprofit Standard Mail

are contained in M630 and M690,

respectively. Revised preparation

standards for Automation First-Class,

automation-compatible Publications

Service and Barcoded rate Regular

Periodicals, and Automation Standard

Mail are contained in M810 (letter-size

pieces) and M820 (flat-size pieces).

M890 brings forward existing standards

for Preferred Periodicals and Nonprofit

Standard Mail. Throughout, the optional

city preparation level has been

eliminated (except for Preferred

Periodicals); the SDC, state, and mixed

states preparation levels have been

replaced with ADC and mixed ADC

levels; and increased citation to P012

has been made as that section is being

developed as the definitive standard for

basic documentation.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66633

P (Postage and Payment Methods).

Revisions in nomenclature are made

throughout. P012 is amended to

improve the definition of

‘‘standardized’’ documentation. P300

and P400 are revised and merged into

new P600 to recognize the merger of

third- and fourth-class into Standard

Mail. P710 is amended to contain new

abbreviations for use with manifest

mailings.

R (Rates and Fees). Revisions in

nomenclature are made throughout.

R000 contains updated stamp and

stamped stationery information. R100

and R200 are amended to reflect revised

rates and rate structures. R300 and R400

are revised and merged into new R600

to recognize the merger of third- and

fourth-class into Standard Mail and to

show revised rates and rate structures.

S (Special Services). Revisions in

nomenclature are made throughout with

no other substantive changes.

Although exempt from the notice and

comment requirements of the

Administrative Procedure Act (5 U.S.C.

553(b), (c)) regarding proposed

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

Postal Service invites comments on the

following proposed revisions of the

DMM, incorporated by reference in the

Code of Federal Regulations. See 39 CFR

Part 111.

List of Subjects in 39 CFR Part 111

Postal Service.

PART 111—[AMENDED]

1. The authority citation for 39 CFR

part 111 continues to read as follows:

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101,

401, 403, 404, 3001–3011, 3201–3219, 3403–

3406, 3621, 3626, 5001.

2. Revise the following sections of the

Domestic Mail Manual as noted below:

* * * * *

An appropriate amendment to 39 CFR

111.3 to reflect these changes will be

published if the proposal is adopted.

Stanley F. Mires,

Chief Counsel, Legislative.

A Addressing

A000 Basic Addressing

A010 General Information

[In 1.2d, replace ‘‘Presorted First-Class,’’

‘‘second-class,’’ and ‘‘bulk third-class

mail; fourth-class mail’’ with ‘‘Retail

Presort First-Class,’’ ‘‘Periodicals,’’ and

‘‘bulk rate Standard Mail (A); Standard

Mail (B),’’ respectively; delete the last

sentence in 1.3; in 1.6 and 7.1, replace

‘‘First-, third-, and fourth-class mail’’

with ‘‘First-Class and Standard Mail’’; in

1.6, replace ‘‘second-class’’ with

‘‘Periodicals’’; in 4.3f and 7.0 (heading),

replace ‘‘Second-[c]lass’’ with

‘‘Periodicals’’; and in 4.3g, replace

‘‘Fourth-class mail’’ with ‘‘Standard

Mail (B).’’]

A040 Alternative Addressing Formats

[In 1.7, 2.2, 3.1, and 3.4, replace

‘‘second-class’’ with ‘‘Periodicals.’’]

A060 Detached Address Labels

[In 1.2, replace ‘‘[S]econd- or [T]hird-

[c]lass’’ with ‘‘Periodicals or Standard

Mail (A)’’; in 1.3, replace ‘‘[T]hird-

[C]lass’’ with ‘‘Standard Mail (A)’’; in

1.4 (heading) and 5.2b, delete ‘‘[F]ourth-

[C]lass’’; in 5.2a, replace ‘‘Second-class’’

with ‘‘Periodicals’’; in 5.2b, replace

‘‘[T]hird-class’’ with ‘‘Standard Mail

(A)’’; in 5.3, replace ‘‘third- or fourthclass’’ with ‘‘Standard Mail.’’]

* * * * *

A930 Other Services

* * * * *

2.0 AIS PRODUCTS

Customers should use USPS Address

Information System (AIS) products to

obtain correct 5-digit ZIP Codes for the

addresses on their mailing lists. These

products generally are more economical

than mailing list services. Customers

with computerized address lists may

obtain the City/State file, Five-Digit ZIP

Code file, Line-of-Travel (LOT)

information, Z4CHANGE file, ZIP Move

file, Carrier Route Information System

(CRIS), and ZIP+4 tapes. Customers may

also use USPS directories and

microfiche products to find correct 5-

digit ZIP Codes for single and multi-ZIP

Coded offices. Information about

ordering and using these products is

available by calling 1–800–238–3150.

* * * * *

[In 3.1a, 4.2, 4.3, 4.4, and 4.6, replace

‘‘[Q]uarterly’’ with ‘‘[B]imonthly.’’]

* * * * *

A950 Coding Accuracy Support

System (CASS)

* * * * *

3.0 DATE OF ADDRESS MATCHING

AND CODING

3.1 Updating Standards

Unless using Z4CHANGE, all

automation and carrier route mailings

bearing addresses coded by any AIS

product must have been coded with

current CASS-certified software and the

current USPS database. Coding must

have been performed within 90 days of

the mailing date for all carrier route

mailings; within 6 months for other

Automation First-Class, Automation

Standard Mail, and Publications Service

mailings; within 1 year for other

Nonprofit Standard Mail ZIP+4 and

Barcoded rate and Regular Periodicals

Barcoded rate mailings. All AIS

products can be used immediately upon

release. New product releases must be

included in address matching systems

no later than 45 days following the

release date. The overlap in the product

use dates allows mailers adequate time

to install the new data files and test

their systems. Mailers are expected to

update their systems with the latest data

files as soon as practical and need not

wait until the ‘‘last permissible use’’

date to include the new information in

their address matching systems. The

‘‘current USPS database’’ product cycle

is defined by this matrix:

File release Required use Last permissible use

Use of the file released on Must begin no later than: And must end no later

than:

February 15 ................. April 1 .......................... May 31.

April 15 ........................ June 1 ......................... July 31.

June 15 ....................... August 1 ...................... September 30.

August 15 .................... October 1 .................... November 30

October 15 .................. December 1 ................ January 31.

December 15 .............. February 1 ................... March 31.
66634 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

* * * * *

5.0 DOCUMENTATION

* * * * *

5.4 Providing Required Data

* * * * *

b. Name of the list processor using the

CASS-certified software to match and

code the address list, the date the

address list was processed, the date of

the USPS database used to code the

address list, the address list name or

identification number, the total number

of address records on the list submitted

for coding, the total number of address

records successfully coded to the

appropriate depth of code, and the

percentage of total addresses submitted

for coding that were successfully coded.

* * * * *

6.0 OBTAINING CASS

CERTIFICATION

6.1 Testing Arrangements

[Replace ‘‘ZIP+4 or delivery point’’ with

‘‘carrier route, ZIP+4, or delivery

point.’’]

* * * * *

C Characteristics and Content

C000 General Information

C010 General Mailability

Characteristics

[In 1.1, replace ‘‘third-class’’ with

‘‘Standard Mail (A)’’; in 1.7, replace

‘‘third-class mail’’ with ‘‘Standard Mail

(A)’’; in 3.8, replace ‘‘third-class’’ with

‘‘Standard Mail (A)’’; no other change in

text.]

* * * * *

C024 Other Restricted or Nonmailable

Matter

[In 12.1, replace ‘‘First-, third-, or

fourth-class’’ with ‘‘First-Class or

Standard Mail’’; no other change in

text.]

* * * * *

C050 Mail Processing Categories

1.0 BASIC INFORMATION

[Replace current 1.1 and 1.2 with the

following:]

All mail is assigned to one of the mail

processing categories listed below,

based on the physical dimensions of the

mailpiece, regardless of the placement

(orientation) of the delivery address on

the mailpiece. Unless permitted by

standard, any mailing at other than the

single-piece First-Class or Standard Mail

rates may not contain pieces from more

than one processing category.

* * * * *

3.0 FLAT-SIZE MAIL

* * * * *

3.2 Barcoded Flats

Automation-compatible flat-size mail

is all mail meeting the dimensional

criteria in C820.

* * * * *

C100 First-Class Mail

1.0 DIMENSIONS

[In 1.2, delete the parenthetical

reference.]

* * * * *

2.0 CARDS CLAIMED AT CARD

RATES

2.1 Postcard Dimensions

Each card (i.e., each postal card or

postcard or each half of a double postal

card or postcard) claimed at a card rate

must be:

a. Rectangular.

b. Not less than 31⁄2 inches high, 5

inches long, or 0.007 inch thick.

c. Not larger than 4–1/4 inches high,

6 inches long, or 0.016 inch thick.

* * * * *

2.8 Special Rules for Cards

Cards not mailed as Retail Presort

First-Class Mail but with the

characteristics noted in 2.6 or 2.7 must:

a. Be prepared in mailings of not less

than 200 cards of identical size and

weight.

b. Have an address that includes the

correct ZIP Code or ZIP+4 code.

c. Have postage paid with permit

imprints, meter stamps, or precanceled

stamps.

d. Be presorted to the finest extent

possible and trayed as required for

Regular Basic and 3/5 rate Standard

Mail.

* * * * *

C200 Periodicals

[In 1.1, 1.2, 1.3, 1.4, 1.4a, 1.4b, 1.4c, 1.6,

1.9, 1.10a, 1.10c, 2.1, 2.2, 2.3, 2.4, 2.5,

3.3, 3.7, 4.2, and 4.4, replace ‘‘[S]econd-

[C]lass’’ with ‘‘Periodicals’’; in 1.3, 1.3b,

1.3c, 1.3d, and 1.10c, replace ‘‘First- or

[any] third-class’’ with ‘‘First-Class or

[any] Standard Mail (A)’’; in 1.3a, 1.3c,

1.3d, 1.8b, and 1.10c, replace ‘‘[T]hird-

[C]lass’’ with ‘‘Standard Mail (A)’’; in

2.2c, replace ‘‘First-, third-, or fourthclass’’ with ‘‘First-Class or Standard

Mail’’; in 2.4, replace ‘‘Fourth-[C]lass’’

with ‘‘Standard Mail (B)’’; no other

change in text.] [Delete current C300

and C400; no change to current C500.]

* * * * *

C600 Standard Mail

1.0 DIMENSIONS

1.1 Standard Mail (A)

These dimensional standards apply to

Standard Mail (A):

a. Each piece must weigh less than 16

ounces. Lower limits apply to mail

claimed at certain rates.

b. Within the standards for mailability

in C010, there is no maximum size for

Regular single-piece, Basic, and 3/5 rate

Standard Mail (A).

c. Except for merchandise samples

mailed with detached address labels

(DALs), the maximum size for Enhanced

Carrier Route Standard Mail is 11–3/4

inches high, 14 inches long, and 3/4

inch thick (see Exhibit 1.1c).

Merchandise samples whose

dimensions exceed these maximums

may be sent at the carrier route rate if

mailed using DALs, provided that the

samples meet all other applicable

standards and the DALs meet the

standards in A060.

d. Minimum and maximum standards

for size and weight might be different

for pieces claimed at certain rates.

1.2 Standard Mail (B)

These dimensional standards apply to

Standard Mail (B):

a. Each piece may not exceed 70

pounds, except matter at bound printed

matter rates may not exceed 10 pounds.

b. The combined length and girth of

a piece (i.e., the length of its longest side

plus the distance around its thickest

part) may not exceed 108 inches (see

Exhibit 1.2b).

c. Two or more packages may be

mailed as a single parcel, if they are

about the same size or shape or if they

are parts of one article, if they are

securely wrapped or fastened together,

and if they do not together exceed the

weight or size limits.

d. Lower size or weight standards

apply to mail claimed at certain rates,

addressed to certain APOs and FPOs,

and sent by the Department of State to

U.S. Government personnel abroad.

e. Pieces might be subject to

minimum weight or dimensions based

on the standards for specific rates.

[Redesignate current Exhibits [C300.]1.3

and [C400.]1.2 as Exhibits [C600.]1.1c

and 1.2b, respectively.]

2.0 SURCHARGES

2.1 Nonstandard Mail

Single-piece rate Standard Mail (A)

(other than a key or identification

device) weighing 1 ounce or less is

nonstandard and subject to the

applicable surcharge if its thickness

exceeds 1⁄4 inch or if, based on the
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66635

placement (orientation) of the address,

its length exceeds 11-1⁄2 inches, its

height exceeds 6-1⁄8 inches, or its length

divided by its height is less than 1.3 or

more than 2.5.

2.2 Nonmachinable Mail

Specific items mailed at the interBMC/ASF parcel post rates might be

subject to a nonmachinable surcharge

(as described in E600) unless the mailer

paid the special delivery or special

handling fee.

3.0 SEALING

Standard Mail is not sealed against

postal inspection. Standard Mail may be

prepared for automated processing but

must allow easy examination.

C800 Automation-Compatible Mail

C810 Letters and Cards

1.0 BASIC STANDARDS

1.1 Standards

All pieces must meet the general and

specific standards for mailability and

their respective mail class. Pieces

claimed at a card rate must also meet

the standards in C100.

1.2 Definitions

Terms used in these standards are

defined as follows:

a. A ‘‘barcoded mailing’’ is one at the

Automation First-Class, Barcoded

Regular and Preferred Periodicals,

Publications Service Periodicals (for

automation-compatible pieces only),

Automation Standard Mail, or a

barcoded Nonprofit Standard Mail rates.

b. An ‘‘automation rate mailing’’ or

‘‘mailing at an automation-based rate’’ is

one at any of the rates in 1.2a or the

ZIP+4 rates for Preferred Periodicals and

Nonprofit Standard Mail.

c. ‘‘Barcoded [cards/letters/pieces]’’

refers to pieces in a barcoded mailing.

2.0 DIMENSIONS

[Renumber current 2.0 through 10.0 as

3.0 through 11.0, respectively; renumber

current 1.2 and 1.3 as 2.1 and 2.2,

respectively; consolidate current 1.4 and

1.5 into new 2.3; revise other text as

follows:]

* * * * *

2.3 Weight

These weight limits apply to

automation-compatible mail:

a. Pieces of upgradable Retail FirstClass, preferred ZIP+4 rate Periodicals,

upgradable Regular Standard Mail, or

Nonprofit ZIP+4 rate Standard Mail

must not exceed 2.5 ounces.

b. Pieces of Automation First-Class

and Standard Mail, automationcompatible Publications Service and

Barcoded rate Regular Periodicals mail,

and Barcoded rate Nonprofit Standard

Mail must not exceed 3 ounces, except

that the maximum weight for pieces that

meet additional barcoding standards in

C840, are prepared in an envelope, and

are part of a 100% delivery point

barcoded mailing is 3.4383 ounces for

Automation First-Class, Barcoded

Regular or automation-compatible

Publications Service Periodicals, and

Nonprofit Standard Mail; and 3.2941

ounces for Automation Standard Mail.

3.0 PROHIBITIONS

3.1 Wraps and Closures

An automation-compatible mailpiece

may not be polywrapped, polybagged,

or shrinkwrapped; have clasps, string,

buttons, or like materials as a closure

device; or have protrusions that might

impede or damage the mail or mail

processing equipment.

* * * * *

[In 5.5, replace ‘‘second-class’’ with

‘‘Periodicals.’’]

* * * * *

C820 Flats

[Renumber current 2.0 through 6.0 as

3.0 through 7.0, respectively; renumber

current 1.2 through 1.5 as 2.1 through

2.4, respectively; in renumbered 2.5b,

6.2, and 7.5, replace ‘‘second-class’’

with ‘‘Periodicals’’; in renumbered 2.5c,

replace ‘‘third-class’’ with ‘‘Standard

Mail (A)’’; revise other text as follows:]

1.0 BASIC STANDARDS

1.1 Standards

All pieces must meet the general and

specific standards for mailability and

the class of mail and rate claimed.

1.2 Definitions

Terms used in these standards are

defined as follows:

a. A ‘‘barcoded mailing’’ is one at the

Automation First-Class, Barcoded

Regular and Preferred Periodicals,

Publications Service Periodicals (for

automation-compatible pieces only),

Automation Standard Mail, or a

barcoded Nonprofit Standard Mail rates.

b. An ‘‘automation rate mailing’’ or

‘‘mailing at an automation-based rate’’ is

one at any of the rates in 1.2a or the

ZIP+4 rates for Preferred Periodicals and

Nonprofit Standard Mail.

c. ‘‘Barcoded [flats/pieces]’’ refers to

pieces in a barcoded mailing.

* * * * *

C840 Barcoded Mailpieces

[Retitle 1.0, renumber current 1.1

through 1.5 as 1.2 through 1.6, and add

new 1.1 as follows:]

1.0 DEFINITIONS OF TERMS AND

BARCODE FORMATS

1.1 Terms

Terms used in these standards are

defined as follows:

a. A ‘‘barcoded mailing’’ is one at the

Automation First-Class, Barcoded

Regular and Preferred Periodicals,

Publications Service Periodicals (for

automation-compatible pieces only),

Automation Standard Mail, or a

barcoded Nonprofit Standard Mail rates.

b. An ‘‘automation rate mailing’’ or

‘‘mailing at an automation-based rate’’ is

one at any of the rates in 1.1a or the

ZIP+4 rates for Preferred Periodicals and

Nonprofit Standard Mail.

c. ‘‘Barcoded [cards/letters/flats/

pieces]’’ refers to pieces in a barcoded

mailing.

* * * * *

2.0 BARCODE LOCATION—LETTERSIZE PIECES

2.1 Barcode Clear Zone

Unless it bears a DPBC in the address

block, each automation-compatible

Publications Service piece and each

piece in a mailing at an automationbased rate must have a barcode clear

zone. The barcode clear zone and all

printing and material in it must meet

the reflectance standards in 5.0. The

barcode clear zone is a rectangular area

in the lower right corner of the address

side of cards and letter-size mailpieces

defined by these boundaries:

a. Right: Right edge of the mailpiece.

b. Left: 43⁄4 inches from the right edge

of the mailpiece.

c. Bottom: Bottom edge of the

mailpiece.

d. Top: 5⁄8 inch from the bottom edge

of the mailpiece.

2.2 General Standards

Barcode location is subject to these

general standards:

a. ZIP+4 rate pieces may bear a DPBC

within either the address block or the

barcode clear zone in the lower right

corner of the address side. Pieces may

not bear a ZIP+4 barcode in the lower

right corner. Subject to rate eligibility

standards, pieces may bear a ZIP+4

barcode in the address block or a 5-digit

barcode within either the address block

or the barcode clear zone in the lower

right corner of the address side.

b. Pieces in barcoded mailings, except

those subject to 2.2c, may bear a DPBC

(or, when allowed by standard, a 5-digit

barcode) in either the address block or

the barcode clear zone. Pieces may bear

a ZIP+4 barcode (subject to rate

eligibility standards) only in the address

block unless the DPBC pieces in the
66636 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

mailing are barcoded in the barcode

clear zone.

c. Pieces weighing more than 3

ounces, up to the maximum weight for

barcoded pieces permitted by C810,

must bear a DPBC in the address block.

2.3 Printed on Mailpiece

Except as noted in 8.2 for 5-digit

barcodes, if the barcode is printed

directly on the lower right corner of the

piece, the entire barcode must be inside

the barcode read area defined by these

limits:

a. Horizontally, the leftmost bar must

be between 31⁄2 inches and 41⁄4 inches

from the right edge of the mailpiece.

b. Vertically, the barcode must be

positioned in the area between 3⁄16 inch

and 7⁄16 inch from the bottom edge of

the mailpiece; the bottom of the bars

must be 1⁄4 inch ±1⁄16 inch from the

bottom edge of the mailpiece.

2.4 Printed on Inserts

If the barcode is printed on an insert

to appear through a window in the

lower right corner of an envelope:

a. The envelope and window must

meet the physical standards in 7.0.

b. The entire barcode must be inside

the barcode clear zone (but need not be

completely inside the barcode read

area).

c. When the insert showing through

the window is moved to any of its limits

within the envelope, the entire barcode

must remain in the barcode clear zone,

and a clear space must be maintained

that is at least 1⁄8 inch between the

barcode and the left and right edges of

the window, at least 1⁄25 inch between

the barcode and the top edge of the

window, and at least 3⁄16 inch between

the barcode and the bottom edge of the

mailpiece.

2.5 Printed in Address Block

When the barcode is placed in the

address block:

a. The barcode must be placed above

the address line containing the

recipient’’s name; below the city, state,

and ZIP Code line; above or below the

keyline information; or above or below

the optional endorsement line.

b. The printing of the barcode

anywhere between the address line

containing the recipient’’s name and the

city, state, and ZIP Code line is

prohibited.

c. The minimum clearance between

the barcode and any information line

above or below it within the address

block must be at least 1⁄25 inch, and the

separation between the barcode and top

line or bottom line of the address block

must not exceed 5⁄8 inch.

d. If a window envelope is used, the

clearance between the leftmost and

rightmost bars and any printing or

window edge must be at least 1⁄8 inch,

and the clearance between the barcode

and the top and bottom window edges

must be at least 1⁄25 inch. These

clearances must be maintained during

the insert’’s range of movement in the

envelope. Address block windows on

heavy letter mail (as defined in 2.2c)

must be covered; such windows may be

covered on other mail. Covers for

address block windows are subject to

7.3.

e. If an address label is used, a clear

space of at least 1⁄8 inch must be left

between the barcode and the left and

right edges of the address label, and the

clearance between the barcode and the

top and bottom edges of the address

label must be at least 1⁄25 inch.

f. The rightmost bar must be at least 1⁄2 inch from the right edge of the

mailpiece, and the leftmost bar must be

less than 101⁄2 inches from the right

edge of the mailpiece and at least 1⁄2

inch from the left edge of the mailpiece;

the top of each bar must be less than 4

inches from the bottom edge of the

mailpiece; and the bottom line of the

address block, including the barcode,

must be at least 5⁄8 inch from the bottom

of the mailpiece.

[Add new 3.0; renumber current 3.0

through 9.0 as 4.0 through 10.0,

respectively, and revise as follows:]

3.0 BARCODE LOCATION—FLATSIZE MAIL

The barcode may be anywhere on the

address side that is at least 1/8 inch

from any edge of the mailpiece. That

portion of the surface of the piece on

which the barcode is printed must meet

the reflectance standards in 5.0. The

address side may bear only one

POSTNET-format barcode (i.e., the

correct barcode for the delivery address

on the mailpiece). Other mailer-applied

non-POSTNET barcodes may appear on

the address side if their format is not

intelligible or not confusing to

automated postal equipment. Address

block barcodes are subject to the

standards in 2.5a through 2.5f.

* * * * *

5.0 REFLECTANCE

* * * * *

5.4 Dark Fibers, Background Patterns

* * * * *

c. The barcode clear zone on all

nonbarcoded pieces in a letter-size

barcoded mailing.

* * * * *

8.0 USE OF ZIP+4 OR 5-DIGIT

BARCODES

8.1 Automation Pieces

Subject to the eligibility standards for

the rate claimed, pieces may bear ZIP+4

or 5-digit barcodes if they meet the

standards in 3.0 through 7.0, except

that:

a. ZIP+4 barcodes may not appear in

the lower right corner on pieces in

Nonprofit Standard Mail or Preferred

Periodicals ZIP+4 rate mailings or

Nonprofit Standard Mail or Preferred

Periodicals Barcoded rate mailings of

pieces with address block barcodes.

b. Five-digit or ZIP+4 barcodes may

not appear on Automation First-Class or

Automation Standard Mail letter-size

pieces, or, except as permitted by the

85% rule, on Barcoded rate or

automation-compatible Publications

Service Periodicals letter-size pieces.

c. Five-digit barcodes may not appear

either on Automation First-Class or

Automation Standard Mail flat-size

pieces or on Barcoded rate or

automation-compatible Publications

Service Periodicals flat-size pieces

except as permitted by the 85% rule.

* * * * *

D Deposit, Collection, and Delivery

D000 Basic Information

* * * * *

D020 Plant Loads

[In 3.1, replace ‘‘second-, third-, and

fourth-class mail’’ with ‘‘Periodicals and

Standard Mail’’; in 5.0, replace

‘‘Second-Class’’ with ‘‘Periodicals.’’]

* * * * *

D041 Customer Mail Receptacles

[In 2.10, replace ‘‘second-class’’ with

‘‘Periodicals.’’]

* * * * *

D072 Drop Shipment of Metered Mail

* * * * *

4.0 OPTION 2: DEPOSIT AT

ANOTHER POST OFFICE

* * * * *

4.4 Markings

The drop shipment endorsement

placed in the ad plate area may include

the marking required by the standards

for the rate claimed if that marking is

placed directly below the drop ship

endorsement. The marking may also be

provided separately, not necessarily by

meter ad plate, directly below the meter

stamp or imprint, if it meets the relevant

size and legibility standards.

* * * * *
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66637

D100 First-Class Mail

[In 2.5, replace ‘‘carrier route FirstClass, Presorted First-Class, ZIP+4, and

Barcoded’’ with ‘‘First-Class Retail

Presort or Automation’’; in 3.4, replace

‘‘Presorted First-Class’’ with ‘‘First-Class

Retail Presort rate.’’]

D200 Periodicals

D210 Basic Information

[In 1.0, 2.1, 2.2, 3.1, 3.4, 4.0, 4.1, 4.2,

and 4.4a, replace ‘‘[S]econd-[C]lass’’

with ‘‘Periodicals’’; in 2.1, replace

‘‘third- or fourth-class’’ with ‘‘Standard

Mail.’’]

D230 Additional Entry

[In 1.1, replace ‘‘second-class’’ with

‘‘Periodicals’’; in 4.5, replace ‘‘secondand third-class’’ and ‘‘third-class’’ with

‘‘Periodicals and Standard Mail (A)’’

and ‘‘Standard Mail (A),’’ respectively.]

[Delete current D300 and D400; no

change to D500.]

* * * * *

D600 Standard Mail

1.0 SERVICE OBJECTIVES

The USPS does not guarantee the

delivery of Standard Mail within a

specified time. Standard Mail might

receive deferred service. Local

postmasters can provide more

information.

2.0 MAIL DEPOSIT

2.1 Single-Piece Rates

Single-piece rate parcel post, bound

printed matter, Special Standard Mail,

or Library mailpieces must be deposited

at a time and place specified by the

postmaster at the post office of mailing.

Single-piece rate Standard Mail (A)

bearing regular adhesive stamps may be

placed into collection boxes,

mailchutes, receiving boxes, or other

places where mail is accepted. Mail

with meter postage must be deposited in

a location under the jurisdiction of the

licensing post office, except as

permitted in D072. Mail with permit

imprints must be presented at the post

office as specified in P040 or P700. Mail

with precanceled stamps must be

presented at the post office as specified

in P023.

2.2 Bulk Rates

Bulk (presort) rate Standard Mail

must be presented at a business mail

entry unit of the post office where the

postage permit or license is held and the

annual bulk mailing fee is paid.

Mailings must be deposited at the

locations and times specified by the

postmaster. Plant-loaded mailings must

be presented as specified by the

applicable standards and the plant load

agreement. Metered bulk Standard Mail

may be deposited at other than the

licensing post office only as permitted

under D072. Nonprofit Standard Mail

must be deposited only at post offices

where the USPS has approved a

nonprofit authorization under the

relevant standards.

2.3 Zoned Rates

Unless excepted by other standards,

pieces paid at zoned rates must be

presented for acceptance at the post

office from which the applicable zoned

rate postage is computed.

2.4 Separation of Mailings

Mailings are separated according to

these conditions:

a. The same mailing may include

pieces mailed at an Automation,

Enhanced Carrier Route, Regular, or

Nonprofit rate if permitted by standard.

b. Separate mailings at Automation,

Enhanced Carrier Route, and Regular

rates may be reported on the same

mailing statement if:

(1) All pieces from each mailing

reported on the statement are presented

at the same time and are part of the

same mailing job.

(2) Only qualifying carrier route

pieces bear the applicable endorsement.

(3) If palletized, the mixed rate level

standards in M045 are met.

c. Multiple, separate Nonprofit rate

mailings may be reported on the same

mailing statement under the conditions

in 2.4b.

d. Nonprofit 3/5 rate and Nonprofit

carrier route rate pieces may not be part

of the same mailing, unless the mailer

is authorized to combine mixed rate

level mailings under M045.

* * * * *

E Eligibility

E000 Special Eligibility Standards

E010 Overseas Military Mail

[In 1.3, replace ‘‘Third- or fourth-class

mail’’ with ‘‘Standard Mail’’; in 1.4,

replace ‘‘Second-[C]lass’’ with

‘‘Periodicals’’; in 1.5, replace ‘‘fourthclass’’ with ‘‘Standard Mail (B)’’; in 3.1,

replace ‘‘second-, third-, or fourth-class’’

with ‘‘Periodicals or Standard Mail’’;

and in 3.3, replace ‘‘second-, third-, or

fourth-class mail’’ with ‘‘Periodicals or

Standard Mail’’; no other change in

text.]

* * * * *

E060 Official Mail (Penalty)

[Renumber Exhibit 13.4 as Exhibit 13.3;

in 4.3, 5.4a, 6.1, 13.0 (heading), 13.1,

13.2, 13.3, renumbered Exhibit 13.3,

13.5, and 15.2b, replace ‘‘[S]econd-

[c]lass’’ with ‘‘Periodicals’’; delete the

last sentence in 7.3; delete 9.6 and

renumber 9.7 through 9.9 as 9.6 through

9.8, respectively; in 12.1, replace

‘‘single-piece third-class, and singlepiece fourth-class (parcel post, specialfourth-class, and bound printed matter)’’

with ‘‘and single-piece rate Standard

Mail (single-piece rate Standard Mail

(A), parcel post, Special Standard Mail,

or bound printed matter)’’; in 12.8 and

12.9, replace ‘‘Third- or fourth-class’’

with ‘‘Standard Mail’’; in 15.2a, replace

‘‘First-, third-, and fourth-class’’ with

‘‘First-Class and Standard Mail’’; and in

15.2b, replace ‘‘second-class’’ with

‘‘Periodicals’’; no other change in text.]

E070 Mixed Classes

[In 2.1, 2.2, 2.3, 3.3, and 3.4, replace

‘‘First- or [T]hird-class’’ with ‘‘FirstClass or Standard Mail (A)’’; in 2.1,

replace ‘‘second-, third-, or fourth-class’’

with ‘‘Periodicals or Standard Mail (A)

or (B)’’; in 2.4, 2.5, 3.1, 3.2b, 3.5, 3.6,

4.2, and 5.0, replace ‘‘third-class’’ with

‘‘Standard Mail (A)’’; in 3.0, 3.1, 3.2,

3.2a, 3.2c, and 3.2e, replace ‘‘secondclass’’ with ‘‘Periodicals’’; in 4.1,

replace ‘‘with third- or fourth-class

mail’’ with ‘‘in pieces of Standard

Mail’’; in 4.2, replace ‘‘fourth-class’’

with ‘‘Standard Mail (B)’’; in 6.1,

replace ‘‘special fourth-class’’ with

‘‘Special Standard Mail’’; no other

change in text.]

E100 First-Class Mail

E110 Basic Standards

1.0 CLASSIFICATION AND

DESCRIPTION

* * * * *

1.2 Written or Typewritten Matter

Matter wholly or partially in writing

or typewriting must be mailed as FirstClass Mail or Express Mail, except

authorized additions to Periodicals or

Standard Mail and written or

typewritten matter in Library Mail and

Special Standard Mail, as permitted by

the corresponding standards.

* * * * *

[Delete current 4.0 and 5.0; renumber

6.0 and 7.0 as 4.0 and 5.0, respectively,

and revise as follows:]

4.0 FEES

4.1 Presort Mailing Fee

A First-Class presort mailing fee must

be paid once each 12-month period at

each office of mailing by any person or

organization entering mailings at Retail

Presort First-Class, Automation FirstClass, and/or Presorted Priority Mail

rates. Payment of one fee allows a

mailer to enter mail at all those rates.
66638 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

Persons or organizations paying this fee

may enter mail of their clients as well

as their own mail.

* * * * *

5.0 DOCUMENTATION

A mailing statement, completed and

signed by the mailer, using the correct

USPS form or an approved facsimile,

must be submitted with each mailing

except for single-piece Retail First-Class

or single-piece Priority Mail mailings in

which the correct postage is affixed to

each piece. Supporting documentation

might be required by the standards for

the rate claimed or the postage payment

method used.

* * * * *

[Replace current E131 and E132 with

new E130 as follows:]

E130 Retail Rates

1.0 BASIC STANDARDS

1.1 All Pieces

All pieces of Retail First-Class Mail

must:

a. Meet the basic standards for FirstClass Mail in E110.

b. Weigh 11 ounces or less.

c. Bear a delivery address.

d. Meet the postage payment

standards in P013 and P100.

1.2 Barcodes

Any POSTNET barcode on a

mailpiece in a Retail First-Class mailing

must meet the standards in C840 and

A950 and must be the correct barcode

for the delivery address.

1.3 Nonstandard Surcharge

A nonstandard surcharge is assessed

on each single-piece or Retail Presort

First-Class rate piece weighing 1 ounce

or less that exceeds the size limits in

C100.

2.0 SINGLE-PIECE RATES

The single-piece Retail rates apply to

any First-Class Mail weighing 11 ounces

or less and not eligible for and claimed

at the single-piece Retail card rate or at

a Retail Presort or Automation FirstClass rate. The single-piece Retail card

rate applies to cards not eligible for and

claimed at a Retail Presort or

Automation First-Class rate.

3.0 PRESORT RATES

3.1 Standards

In addition to the standards in 1.0, all

pieces in a Presort First-Class rate

mailing must:

a. Be part of a single mailing of at

least 500 pieces of Retail Presort FirstClass Mail.

b. Be in the same processing category.

c. Bear a delivery address that

includes the correct numeric ZIP Code

or ZIP+4 code and that meets the

standards for accuracy and maintenance

in 3.2 and 3.3.

d. Be marked, presorted, and

documented as specified in M130.

3.2 Address Quality

Effective 6 months from the date on

which Classification Reform is

implemented, or on January 1, 1997,

whichever is sooner, addresses

appearing on all pieces claimed at Retail

Presort rates must have been updated

within 6 months of the date of mailing

by a USPS-approved address update

tool (e.g., the ‘‘Address Correction

Endorsement,’’ ACS, or NCOA). Mailers

must certify that this standard has been

met when the corresponding mail is

presented to the USPS. This standard

applies to each address individually,

not to a specific list or mailing. An

address meeting this standard may be

used in mailings at any other rate to

which the standard applies throughout

the 6-month period following its most

recent update.

3.3 ZIP Code Accuracy

Effective 3 months from the date on

which Classification Reform is

implemented, 5-digit ZIP Codes

included in addresses appearing on

pieces claimed at Retail Presort rates

must have been verified and corrected

within 12 months of the date of mailing

by a USPS-approved method. Mailers

must certify that this standard has been

met when the corresponding mail is

presented to the USPS. This standard

applies to each address individually,

not to a specific list or mailing. An

address meeting this standard may be

used in mailings at any other rate to

which the standard applies throughout

the 12-month period following its most

recent update.

[Replace current E142, E144, E145, and

E147 through E149 with new E140 as

follows:]

E140 Automation Rates

1.0 BASIC STANDARDS

1.1 All Pieces

All pieces in an Automation FirstClass mailing must:

a. Meet all the basic standards for

First-Class Mail in E110.

b. Be part of a single mailing of at

least 500 pieces of Automation FirstClass Mail.

c. Be in the same processing category

and meet the applicable physical

standards in C810 or C820.

d. Bear a delivery address that

includes the correct numeric 5-digit ZIP

Code or ZIP+4 code, or the correct

numeric equivalent to the delivery point

barcode (DPBC).

e. Meet the address quality and

coding standards in 1.2, 1.3 (if

applicable), A800, and A950.

f. Be marked, presorted, and

documented as specified in M810 or

M820, as applicable.

g. Meet the postage payment

standards in P013 and P100.

h. Bear an accurate barcode meeting

the standards in C840, either the correct

DPBC if a card or letter (on the piece or

on an insert showing through a barcode

window) or the correct ZIP+4 barcode or

DPBC if a flat.

1.2 Address Quality

Effective 6 months from the date on

which Classification Reform is

implemented, or on January 1, 1997,

whichever is sooner, addresses

appearing on all pieces claimed at

Automation rates must have been

updated within 6 months of the date of

mailing by a USPS-approved address

update tool (e.g., the ‘‘Address

Correction Endorsement,’’ ACS, or

NCOA). Mailers must certify that this

standard has been met when the

corresponding mail is presented to the

USPS. This standard applies to each

address individually, not to a specific

list or mailing. An address meeting this

standard may be used in mailings at any

other rate to which the standard applies

throughout the 6-month period

following its most recent update.

1.3 Carrier Route Presort

Mailers must apply carrier route

codes to mailings using CASS-certified

software and the current USPS Carrier

Route Information System (CRIS)

scheme or another AIS product

containing carrier route information (see

A930). Mailers must have updated

carrier route information within 90 days

of the mailing date. Carrier route rates

for letter-size mail are available only for

those 5-digit ZIP Code areas identified

in the USPS AIS products used for

address coding.

1.4 Enclosed Reply Envelopes and

Cards

Effective January 1, 1997, all courtesy

reply and business reply envelopes and

cards provided to addressees as

enclosures in Automation First-Class

Mail must bear the correct facing

identification mark (FIM) and delivery

point barcode for the delivery address of

the reply piece and must meet the

automation compatibility standards in

C810 or C820, as appropriate. Mailers

must certify that this standard has been
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66639

met when the corresponding mail is

presented to the USPS.

2.0 RATE APPLICATION

2.1 Letters and Cards

Automation First-Class rates apply to

each piece that is correctly presorted

under M810 into the corresponding

qualifying groups:

a. Pieces in full carrier route trays, or

in carrier route packages of 10 or more

pieces each placed in 5-digit carrier

routes trays, qualify for the Automation

Carrier Route rate. (Preparation to

qualify for the Carrier Route rate is

optional and need not be performed for

all carrier routes in a 5-digit area.)

b. Groups of 150 or more pieces in full

or overflow 5-digit trays qualify for the

Automation 5-Digit rate. (Preparation to

qualify for the 5-Digit rate is optional.)

c. Groups of 150 or more pieces in full

or overflow 3-digit or 3-digit scheme

trays qualify for the Automation 3-Digit

rate.

d. Pieces in full or overflow AADC

trays and in all mixed AADC trays

qualify for the Automation Basic rate.

2.2 Flats

Automation First-Class rates apply to

each piece that is correctly presorted

under M820 into the corresponding

qualifying groups:

a. Pieces in 5-digit or 3-digit packages

of 10 or more pieces each qualify for the

Automation 3/5 rate.

b. Pieces in ADC or mixed ADC

packages qualify for the Automation

Basic rate.

E200 Periodicals

E210 Basic Standards

E211 Standards Applicable to All

Periodicals Publications

[In 1.1, 1.2, 2.1, 3.0, 4.1, 5.1, 6.1, 6.2,

7.2, 7.3, 7.4, 7.5, 8.1, 8.2, 9.0, 11.1, and

12.0, replace ‘‘second-class’’ with

‘‘Periodicals.’’ In 1.1, 4.1, 5.3, 7.4, 7.5,

10.2, and 13.1a, replace ‘‘second-class

mail privileges’’ with ‘‘Periodicals

mailing privileges.’’ In 6.1 and 9.0,

replace ‘‘First-, third-, or fourth-class

rates’’ with ‘‘First-Class or Standard

Mail rates.’’ Revise other text as

follows:]

* * * * *

10.0 IDENTIFICATION

* * * * *

10.4 Bound Publication

In a bound publication (one securely

bound by two or more staples, spiral

binding, glue, stitching, or other

permanent fastening), the identification

statement must be shown conspicuously

as described in 10.3 or on one of the last

three editorial pages inside the back

cover. If the publication is mailed with

a permissible nonincidental enclosure

paid with permit imprint, the

identification statement must be located

as specified in 10.3.

10.5 Identification Statement Content

The identification statement must

contain:

* * * * *

g. The imprint ‘‘Periodicals Postage

Paid at . . .’’ or, if mailed at two or

more offices, ‘‘Periodicals Postage Paid

at . . . and at additional mailing

offices.’’ A notice of pending

application is shown instead if copies

are mailed while an application is

pending: ‘‘Application to Mail at

Periodicals Postage Rates is Pending at.

. . .’’

* * * * *

13.0 FEES

13.1 Fee Required

* * * * *

e. Publications Service.

* * * * *

14.0 BASIC RATE ELIGIBILITY

14.1 Regular Rates

Regular rates apply to all copies of an

authorized Periodicals publication

mailed by a publisher or news agent,

except nonrequester and nonsubscriber

copies under E215, unless the

publication is separately authorized

Publications Service rates or a preferred

rate. Mailings are also subject to the

standards that apply to rates or

discounts claimed. Regular rates include

a per piece charge, a zone-based charge

for the weight of the advertising portion

of the publication, and an unzoned

charge for the weight of the

nonadvertising portion. Each piece rate

requires specific preparation.

14.2 Preferred Rates

Preferred rates include the in-county

and special (nonprofit, classroom, and

science-of-agriculture) rates. Requester

publications are not eligible for

preferred rates. Publications Service

publications may qualify only for incounty rates, subject to E270. Copies of

authorized Periodicals publications

mailed at any preferred rate must meet

the corresponding eligibility standards.

Nonsubscriber copies mailed at

preferred rates are subject to the

standards in E215 and E270 and those

applicable to other rates or discounts

claimed. Preferred rates include a per

piece charge, a zone-based charge for

the weight of the advertising portion of

the publication, and an unzoned charge

for the weight of the nonadvertising

portion, except that in-county rates

apply without differentiation to both the

advertising and nonadvertising portions.

Each piece rate requires specific

preparation.

14.3 Publications Service Rates

Publications Service rates are

applicable to pieces eligible under E220.

Publications Service rates include a per

piece charge and a zone-based charge

applied to the entire weight of the

publication. The Publications Service

rate requires specific preparation.

14.4 Discounts and Adjustments

Postage for Periodicals publications is

reduced by any applicable discounts:

a. The nonadvertising adjustment

applies to the outside-county piece rate

charges for Regular and Preferred

Periodicals publications and is

computed as described in P013.

b. Presort discounts are available for

Publications Service Periodicals, subject

to E220, and for Regular and Preferred

Periodicals, subject to E230.

c. Automation-based discounts are

available for Regular and Preferred

Periodicals, subject to E240.

d. Destination entry discounts are

available for copies of any Periodicals

publication entered by the publisher at

specific USPS facilities, subject to E250.

14.5 Copies Mailed by Public

The applicable single-piece FirstClass or Standard Mail rate is charged

on copies of publications mailed by the

general public (i.e., other than

publishers or registered news agents)

and on copies returned to publishers.

E212 Additional Standards for

Qualification Categories

[In 1.1, 5.1, 6.1, and 6.2, replace

‘‘second-class’’ with ‘‘Periodicals.’’ In

1.3, 2.1, 2.2, 2.3, 3.1, 5.1, and 5.2,

replace ‘‘second-class mail privileges’’

with ‘‘Periodicals mailing privileges.’’ In

6.5, replace ‘‘third- or fourth-class rates’’

with ‘‘Standard Mail rates.’’]

* * * * *

7.0 PUBLICATIONS SERVICE

Publications Service is available only

to those publications authorized

Periodicals mailing privileges as general

or requester publications that meet the

additional standards in E220.

E213 Periodicals Mailing Privileges

[In 2.1, 3.5, and 3.6, replace ‘‘secondclass’’ with ‘‘Periodicals.’’ In 1.1, 1.2,

1.3, 1.4, 1.5, 1.9, 2.1, 3.1, 3.4, 3.5, 4.0

(heading), 4.1, 4.2, and 4.3, replace

‘‘second-class mail privileges’’ with

‘‘Periodicals mailing privileges.’’ In 2.1,

replace ‘‘First-, third-, or fourth-class
66640 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

rates’’ with ‘‘First-Class or Standard

Mail rates.’’ In 2.2, replace ‘‘third- or

fourth-class rates’’ with ‘‘Standard Mail

rates.’’ Do not revise the title of 39 CFR

954 shown in 3.7 and 4.3.]

1.0 ORIGINAL ENTRY

APPLICATIONS

* * * * *

1.11 Publications Service

Application for Publications Service

is in addition to an application for

original entry and is subject to E220.

Although a publication must be

authorized original entry as a

Periodicals publication to be eligible for

Publications Service, application for

both may be made concurrently.

2.0 MAILING WHILE APPLICATION

PENDING

2.1 Before Approval

[Add to the end of the section:]

Pending Publications Service

publications are charged the applicable

Periodicals rate if previously

authorized.

* * * * *

E214 Reentry

[In 1.1, 1.2, 1.3, 2.2, 3.1, 3.3, 3.6, and

3.10, replace ‘‘second-class’’ with

‘‘Periodicals.’’ In 2.1, replace ‘‘secondclass mail privileges’’ with ‘‘Periodicals

mailing privileges.’’ In 3.10, replace

‘‘third- or fourth-class postage’’ with

‘‘Standard Mail postage.’’ Do not revise

the title of 39 CFR 954 shown in 3.12.]

* * * * *

3.0 APPLICATIONS FOR REENTRY

* * * * *

3.9 During Appeal

During the appeal:

a. Copies of any issue of a publication

denied reentry under 1.0 and found

unqualified for Periodicals mailing

privileges are accepted in a pending

status at the applicable Standard Mail

rates. For this standard, ‘‘pending

status’’ begins when the appeal is filed

and continues until the end of the

appeal process.

b. Copies of a publication denied

reentry under 2.0 are accepted at the

currently applicable Periodicals rate.

c. The publisher must submit the

applicable Periodicals and Standard

Mail mailing statements with each

mailing of the publication in a pending

status. Failure to submit these

statements is sufficient grounds to deny

a postage refund under 3.12.

* * * * *

E215 Copies Not Paid or Requested by

Addressee

[In 1.8, 2.1, 2.2, and 2.6, replace

‘‘second-class’’ with ‘‘Periodicals.’’ In

1.6, replace ‘‘second-class mail

privileges’’ with ‘‘Periodicals mailing

privileges.’’ In 2.6 and 2.7, replace

‘‘First-, third-, or fourth-class rate[s]’’

with ‘‘First-Class or Standard Mail

rate[s].’’ In 2.7, replace ‘‘third- or fourthclass rates’’ with ‘‘Standard Mail rates.’’]

E216 Publisher Records

[Relocate current 3.0 to E231 and revise

as shown below; renumber current 4.0

and 5.0 as 3.0 and 4.0, respectively; as

renumbered, in 1.1, 2.1, 3.1, 3.4, 4.1,

and 4.2, replace ‘‘second-class’’ with

‘‘Periodicals,’’ and in 1.1, 2.2, 3.2, and

3.3, replace ‘‘second-class mail

privileges’’ with ‘‘Periodicals mailing

privileges.’’]

E217 Authorization for Special Rates

[In 1.3, 2.1, 2.2, 3.4, and 3.5, replace

‘‘second-class’’ with ‘‘Periodicals.’’ In

1.2, 2.1, 2.2, replace ‘‘second-class mail

privileges’’ with ‘‘Periodicals mailing

privileges.’’ In 2.2, replace ‘‘First-, third-

, or fourth-class rates’’ with ‘‘First-Class

or Standard Mail rates.’’ In 2.2, replace

‘‘third- or fourth-class postage’’ with

‘‘Standard Mail postage.’’ In 3.4, replace

‘‘third- or fourth-class rates’’ with

‘‘Standard Mail rates.’’]

1.0 APPLICATION

1.1 Basic Information

[Add to the end of the section:]

* * * Preferred rates (except incounty rates) are not available to

Publications Service publications.

* * * * *

E220 Publications Service

1.0 BASIC INFORMATION

1.1 Availability

Publications Service is available to

authorized Periodicals publications that

meet the applicable standards in E211

through E216 (unless specifically

excepted) and the additional standards

in 2.0, regardless of the category of the

publication’s authorization for

Periodicals mailing privileges. Only the

Publications Service rates in R200 are

available to Publications Service

publications, except that in-county rates

may be claimed for qualifying copies.

The eligibility standards for

Publications Service consider only

copies mailed at Publications Service

rates and exclude copies claimed at incounty rates, copies mailed to

addressees at Express Mail, Priority

Mail, First-Class Mail, or Standard Mail

rates, and copies distributed outside the

mail.

1.2 Application

Publishers must apply for

Publications Service in addition to the

category of authorization in which

Periodicals mailing privileges are sought

under E213. A separate application is

required for Publications Service

although it may be submitted at the

same time as an application for

Periodicals mailing privileges. Data on

the application for original entry or

reentry may be used to establish

compliance with the further criteria

prescribed for Publications Service;

additional supporting documentation

must be provided as necessary.

Decisions on applications for

Publications Service are made by the

RCSC manager in whose service area the

publication is authorized original entry.

Appeals of adverse decisions may be

made under G020. A publication whose

application to mail at Publications

Service rates is withdrawn by the

publisher or denied by the USPS is

ineligible to reapply for authorization

for 1 year from the date of the

publisher’s letter of withdrawal or final

denial notice from the USPS.

2.0 ELIGIBILITY

2.1 Standards

Each Publications Service publication

must:

a. Contain at least 30%

nonadvertising in each issue

(advertising is defined in E211).

b. Have a minimum of 75%

circulation to a legitimate list of

requesters (for requester publications) or

subscribers (for other publications). A

legitimate list of subscribers meeting the

standards applicable to general

publications is required for all but

requester publications, regardless of

whether such a list is otherwise

required by the standards applicable to

the publication’s category of

authorization.

c. Have at least 90% of the copies of

each issue presorted to 3-digit ZIP Code

areas, subject to 2.3 and 2.4.

d. Bear a delivery address that

includes the correct numeric ZIP+4 or 5-

digit ZIP Code (or, only if prepared with

a delivery point barcode (DPBC), the

numeric equivalent to the DPBC).

e. Be marked, presorted, and

documented as specified in M200, M810

or M820, as applicable, and P012.

f. Meet the postage payment standards

in P013 and P200.

g. Be audited by a certified public

accountant or national circulation audit

service approved by the USPS to verify
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66641

accurate postage calculation and

compliance with the applicable paid or

requester circulation standards in E212

and 2.1b.

h. Use Address Change Service.

2.2 Automation-Compatible

Mailpieces

Letter-size mailpieces meeting the

automation compatibility standards in

C810 must also meet the standards in

3.0. Flat-size mailpieces meeting the

automation compatibility standards in

C820 must also meet the standards in

4.0.

2.3 90% Standard

To count toward the 90% 3-digit

presort standard in 2.1c, a copy must be

one of 24 or more copies for the same

3-digit ZIP Code area that are prepared

in firm, carrier route, 5-digit, or 3-digit

packages of six or more copies each.

Copies in firm packages count

individually toward the 90% standard,

but the firm package is considered a

single piece for other presort and

postage payment purposes. Firm

packages may not be included in

mailings of automation-compatible

letter-size mailpieces.

2.4 Issue ‘‘Window’’

At the time application for

Publications Service is made, the

publisher must define a time period or

‘‘window’’ that begins and ends at the

same relative point in the production/

distribution cycle of each issue. For

administering the 90% standard in 2.1c

and 2.3, all copies of any issue or

edition of the publication mailed during

a ‘‘window’’ are considered part of the

distribution of the issue whose primary

distribution is then occurring, and are

included in the determination of its

compliance with the 90% standard.

2.5 ZIP Code Accuracy

Except for automation-compatible

pieces, effective 3 months from the date

on which Classification Reform is

implemented, 5-digit ZIP Codes

included in addresses appearing on

pieces claimed at Publications Service

rates must have been verified and

corrected within 12 months of the date

of mailing by a USPS-approved method.

Mailers must certify that this standard

has been met when the corresponding

mail is presented to the USPS. This

standard applies to each address

individually, not to a specific list or

mailing. An address meeting this

standard may be used in mailings at any

other rate to which the standard applies

throughout the 12-month period

following its most recent update.

3.0 ADDITIONAL STANDARDS FOR

AUTOMATION-COMPATIBLE

LETTER-SIZE PIECES

3.1 All Letter-Size Mailpieces

All letter-size Publications Service

mailpieces that meet the physical

standards in C810 must:

a. Meet the address quality and

coding standards of A800 and A950.

b. Be presorted and documented as

specified in M810.

c. Bear the correct DPBC meeting the

barcode standards in C840, subject to

3.2.

3.2 85% Rule

The correct DPBC for the delivery

address, as defined by the standards for

address quality and coding accuracy in

A800 and A950, must appear on each

piece in any mailing containing heavy

letters (as defined in C810) and on at

least 85% of all pieces in other lettersize mailings. Remaining pieces must

have a barcode clear zone in the lower

right corner meeting the reflectance

standards in C840, meet the 5-digit

barcode standards in C840 (if

applicable), and not have a window in

the lower right corner. Compliance with

the 85% standard is based on all copies

mailed during the production/mailing

‘‘window’’ defined in 2.4.

4.0 ADDITIONAL STANDARDS FOR

AUTOMATION-COMPATIBLE FLATSIZE PIECES

4.1 All Flat-Size Mailpieces

All flat-size Publications Service

mailpieces that meet the applicable

standards in C820 must:

a. Meet the address quality and

coding standards of A800 and A950.

b. Be presorted and documented as

specified in M820.

c. Be presorted to carrier routes, or

bear the correct DPBC, ZIP+4 barcode,

or 5-digit barcode meeting the barcode

standards in C840, subject to 4.2.

4.2 85% Rule

At least 85% of all pieces must either

be presorted to carrier routes or bear the

correct ZIP+4 barcode or DPBC for the

delivery address, as defined by the

standards for address quality and coding

accuracy in A800 and A950. Remaining

pieces must bear the correct 5-digit

barcode meeting the applicable

standards in C840. Compliance with the

85% standard is based on all copies

mailed during the production/mailing

‘‘window’’ defined in 2.4.

5.0 NONCOMPLIANCE

A Publications Service publication is

subject to the revocation or suspension

provisions of E213 if it fails to meet the

applicable basic standards for

Periodicals mailing privileges in E211

through E216. A Publications Service

publication that fails to meet the

advertising standard in 2.1a or the

density standard in 2.1c is subject to a

surcharge of 40% of the total postage

otherwise payable for the issue (as

defined in 2.4). A Publications Service

publication that fails to meet the

circulation standards in 2.1b is subject

to revocation of authorization to mail at

Publications Service rates, as

determined by the RCSC manager in

whose service area the publication is

authorized original entry. Appeals of

surcharge assessments or revocation

notices may be made under G020. A

publication whose authorization to mail

at Publications Service rates is ended,

either voluntarily by the publisher or by

the USPS through a final revocation, is

ineligible to reapply for authorization

for 1 year from the termination date of

the previous authorization.

E230 Presort Rates

E231 Regular Periodicals

1.0 GENERAL INFORMATION

1.1 Standards

The standards for presort rates are in

addition to the general standards for

Periodicals in E210, the standards for

other rates or discounts claimed, and

the applicable preparation standards in

M210, M810, or M820. Not all

combinations of presort level,

automation, and destination entry

discounts are allowed.

1.2 Palletized Mail

A correctly prepared package is the

equivalent of a sack when palletized

under M045. Individual pieces qualify

for the presort level rate appropriate to

the palletized package in which they are

placed, regardless of the destination of

the pallet. Eligibility for destination

entry or other zoned rates remains

dependent on the point of entry.

2.0 CARRIER ROUTE RATES

2.1 Carrier Route Information

Mailers must presort mail to carrier

routes using the latest USPS Carrier

Route Information System (CRIS)

scheme (see A930). Mailers must have

incorporated the CRIS changes in their

mailings within 90 days before the date

of mailing.

2.2 Eligibility

Preparation to qualify eligible pieces

for carrier route rates is optional and is

subject to M210. Pieces may not claim

both a carrier route presort rate and a

barcode discount. Carrier route presort
66642 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

need not be performed for all carrier

routes in a 5-digit area. Specific rate

eligibility is subject to these standards:

a. The basic carrier route rate applies

to pieces in carrier route packages of six

or more pieces each that are correctly

sorted to carrier route or carrier routes

trays (letter-size pieces) or sacks (flatsize pieces).

b. The high density and saturation

rates apply to pieces that are eligible for

the basic carrier route rate, are prepared

in carrier walk sequence, and meet the

applicable density standards in 5.0 for

the rate claimed.

3.0 3/5 RATES

Subject to M210, 3/5 rates apply to:

a. Letter-size pieces in 5-digit or 3-

digit packages of six or more pieces

each, either correctly placed in 5-digit

or 3-digit trays containing at least 24

pieces or in an overflow 3-digit tray.

b. Flat-size pieces in 5-digit or 3-digit

packages of six or more pieces each,

either correctly placed in 5-digit or 3-

digit sacks or palletized under M045.

4.0 BASIC RATES

Basic rates apply to pieces not eligible

for or claimed at either the carrier route

or 3/5 rates.

5.0 WALK-SEQUENCE DISCOUNTS—

REGULAR PERIODICALS

[Insert text of current E230.7.0 and 8.0,

renumbered as 5.0 and 6.0, respectively;

in renumbered 5.4b and 5.4d, replace

‘‘125-piece walk-sequence rate’’ with

‘‘high density/125-piece walk-sequence

rate’’; revise other text as follows:]

5.1 Eligibility

The 125-piece or saturation walksequence rates apply to each walksequenced piece in a carrier route

mailing, eligible under 2.2 and prepared

under M210, that also meets the

corresponding addressing and density

standards in 5.4. (For this standard,

‘‘carrier route’’ includes city carrier

routes, rural routes, highway contract

routes, and general delivery and post

office box sections.)

* * * * *

E232 Publications Service Periodicals

1.0 GENERAL INFORMATION

1.1 Standards

The standards for presort rates are in

addition to the general standards for

Periodicals in E210, for Publications

Service in E220, the standards for other

rates or discounts claimed, and the

applicable preparation standards in

M210, M810, or M820. Not all

combinations of presort level,

automation, and destination entry

discounts are allowed.

1.2 Palletized Mail

A correctly prepared package is the

equivalent of a sack when palletized

under M045. Individual pieces qualify

for the presort level rate appropriate to

the palletized package in which they are

placed, regardless of the destination of

the pallet. Eligibility for destination

entry or other zoned rates remains

dependent on the point of entry.

2.0 CARRIER ROUTE RATES

2.1 Carrier Route Information

Mailers must apply carrier route

codes to mailings using CASS-certified

software and the current USPS Carrier

Route Information System (CRIS)

scheme or another AIS product

containing carrier route information (see

A930). Mailers must have updated the

carrier route information within 90 days

before the mailing date. Carrier route

rates for automation-compatible lettersize mail are available only for those 5-

digit ZIP Code areas identified in the

USPS AIS products used for address

coding.

2.2 Automation-Compatible LetterSize Pieces

Where available, Carrier Route rates

apply to pieces in carrier route packages

of six or more pieces each that are

correctly sorted to full carrier route or

any 5-digit carrier routes trays.

Preparation to qualify eligible pieces for

carrier route rates is optional and is

subject to M210 and M810. Carrier route

presort need not be performed for all

carrier routes in a 5-digit area.

2.3 Other Letter-Size Pieces

Carrier Route rates apply to pieces in

carrier route packages of six or more

pieces each that are correctly sorted to

full carrier route or any 5-digit carrier

routes trays. Preparation to qualify

eligible pieces for carrier route rates is

optional and is subject to M210. Carrier

route presort need not be performed for

all carrier routes in a 5-digit area.

Carrier Route rate mail must be

prepared in carrier line-of-travel (LOT)

sequence, using official LOT schemes

prescribed by the USPS (see M050).

2.4 Flat-Size Pieces

Carrier Route rates apply to pieces in

carrier route packages of six or more

pieces each that are correctly sorted to

carrier route sacks containing at least 24

pieces, or to any 5-digit carrier routes

sacks. Preparation to qualify eligible

pieces for Carrier Route rates is optional

and is subject to the applicable

standards in M210 or M820. Carrier

route presort need not be performed for

all carrier routes in a 5-digit area.

Carrier Route rate mail must be

prepared in carrier walk sequence or

line-of-travel (LOT) sequence, using

official LOT schemes prescribed by the

USPS (see M050).

3.0 BASIC RATES

Basic rates apply to pieces correctly

prepared under M210 and not claimed

at Carrier Route rates.

E239 Preferred Periodicals

[Copy text of current E230; renumber

current 6.0 as 1.4; renumber 7.0 as 6.0;

delete current 8.0; revise the remainder

as follows:]

1.0 GENERAL INFORMATION

1.1 Standards

The standards for presort rates are in

addition to the general standards for

Periodicals in E210, the standards for

other rates or discounts claimed, and

the applicable preparation standards in

M290 or M890. Not all combinations of

presort level, automation, and

destination entry discounts are allowed.

1.2 Optional Preparation

At the mailer’s option, Preferred

Periodicals may be prepared under the

standards for Regular Periodicals in

M210, including presort. Under this

option, Preferred Periodicals can claim

Level I/K, Level H, or Level G/J rates,

and may be combined (comailed) with

Regular Periodicals in the same mailing,

if all corresponding eligibility standards

in E231 for Carrier Route, 3/5, and

Basic, respectively, are met, except that

pieces in 3-digit packages can earn the

Level H rate only when prepared for the

unique 3-digit ZIP Code destinations

identified in L002, Column A. Presort of

the combined mailing is based on the

total combined volume of pieces.

1.3 Palletized Mail

A correctly prepared package is the

equivalent of a sack when palletized

under M045. Individual pieces qualify

for the presort level rate appropriate to

the palletized package in which they are

placed, regardless of the destination of

the pallet. Eligibility for destination

entry or other zoned rates remains

dependent on the point of entry.

1.4 Reporting Presort Level

Publishers must separately report

copies at Levels G3 and G5, and Levels

J1, J3, and J5, only when claiming a

ZIP+4 or ZIP+4 Barcoded rate.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66643

2.0 CARRIER ROUTE (LEVEL I/K)

RATES

2.1 Rate Application

Level I/K rates apply as follows:

a. Level I1 or K1 rates apply to pieces

in carrier route packages of six or more

pieces each that are correctly sorted to

carrier route or carrier routes trays or

sacks.

b. Level I2 or K2 rates apply to pieces

eligible for the Level I1 or K1 rates that

are further prepared in carrier delivery

walk sequence and in the density

necessary to meet the additional

standards in 6.0 for the 125-piece walksequence rate.

c. Level I3 or K3 rates apply to pieces

eligible for the Level I1 or K1 rates that

are further prepared in carrier delivery

walk sequence and in the density

necessary to meet the additional

standards in 6.0 for the saturation walksequence rate.

2.2 Carrier Route Information

Mailers must presort mail to carrier

routes using the latest USPS Carrier

Route Information System (CRIS)

scheme. Mailers must have incorporated

the CRIS changes in their mailings

within 90 days before the date of

mailing (see A930).

3.0 3- AND 5-DIGIT (LEVEL H) RATES

3.1 H Rates

Level H rates apply to pieces in 5-

digit, optional city, and unique 3-digit

packages of six or more pieces each that

are correctly sorted to 5-digit, optional

city, or unique 3-digit sacks.

3.2 H5 Rates

Level H5 rates apply:

a. In tray-based automation-rate lettersize mailings, to pieces in 5-digit trays.

b. In package-based automation-rate

letter-size mailings, to pieces in 5-digit

packages of 10 or more pieces each

placed in 5-digit, optional city, 3-digit,

SCF, or AADC trays.

c. In ZIP+4 Barcoded rate flat-size

mailings, to pieces in 5-digit packages of

six or more pieces each placed in 5-

digit, optional city, 3-digit, SCF, or ADC

sacks or palletized under M045.

d. In other mailings, to pieces in 5-

digit packages of six or more pieces each

placed in 5-digit, optional city, or

unique 3-digit sacks.

3.3 H3 Rates

Level H3 rates apply:

a. In tray-based automation-rate lettersize mailings, to pieces in optional city

and unique 3-digit trays.

b. In package-based automation-rate

letter-size mailings, to pieces in optional

city and unique 3-digit packages of 50

or more pieces each placed in optional

city, 3-digit, SCF, or AADC trays.

c. In ZIP+4 Barcoded rate flat-size

mailings, to pieces in optional city and

unique 3-digit packages of six or more

pieces each placed in optional city, 3-

digit, SCF, or ADC sacks or palletized

under M045.

d. In other mailings, to pieces in

optional city or unique 3-digit packages

of six or more pieces each placed in

optional city or unique 3-digit sacks.

4.0 BASIC (LEVEL G) RATES

Level G rates apply to pieces not

eligible for or claimed at the rates in 2.0

or 3.0.

5.0 IN-COUNTY (LEVEL J) RATES

[In 5.2c and 5.3c, replace ‘‘SDC’’ with

‘‘ADC.’’]

6.0 WALK-SEQUENCE DISCOUNTS

[Insert text of current E230.7.0.]

E240 Automation Rates

E241 Regular Periodicals

1.0 BASIC STANDARDS FOR

LETTER-SIZE PIECES

1.1 All Pieces

All pieces in a Barcoded rate lettersize mailing must:

a. Meet the basic standards for

Periodicals and for the category of

authorization.

b. Meet the physical standards in

C810.

c. Bear a delivery address that

includes the correct numeric ZIP+4 or 5-

digit ZIP Code (or, only if prepared with

a delivery point barcode (DPBC), the

numeric equivalent to the DPBC).

d. Meet the address quality and

coding standards of A800 and A950.

e. Be presorted and documented as

specified in M810.

f. Meet the postage payment standards

in P013 and P200.

g. Bear the correct DPBC meeting the

barcode standards in C840, subject to

1.4.

1.2 Rate Application

Barcoded rates apply to each piece

that meets the applicable standards in

1.3 and 1.4 and bears the correct DPBC

meeting the barcode standards in C840.

Subject to M810, 3/5 Barcoded rates

apply to letter-size pieces in 5-digit

packages of 10 or more pieces each, and

in 3-digit packages of 50 or more pieces

each, correctly placed in 5-digit, 3-digit,

AADC, or mixed AADC trays. Basic

Barcoded rates apply to other pieces

correctly prepared under M810.

1.3 Barcode Window

A mailpiece weighing 3 ounces or

less, meeting the standards in 1.1 and

1.2 but with a barcode window in the

lower right corner, may be eligible for

the Barcoded rate only if the correct

DPBC appears through the window.

1.4 85% Rule

The correct DPBC for the delivery

address, as defined by the standards for

address quality and coding accuracy in

A800 and A950, must appear on each

piece in any mailing containing heavy

letters (as defined in C810) and on at

least 85% of all pieces in other lettersize mailings. Remaining pieces must

have a barcode clear zone in the lower

right corner meeting the reflectance

standards in C840, meet the applicable

5-digit or ZIP+4 barcode standards in

C840, and not have a window in the

lower right corner. Compliance with the

85% standard is based on each mailing.

1.5 Exclusions

Barcoded rate mailings may not

include firm packages or pieces claimed

at carrier route rates.

2.0 BASIC STANDARDS FOR FLATSIZE PIECES

2.1 All Pieces

All pieces in a Barcoded rate flat-size

mailing must:

a. Meet the basic standards for

Periodicals and for the category of

authorization.

b. Meet the physical standards in

C820.

c. Bear a delivery address that

includes the correct numeric ZIP+4 or 5-

digit ZIP Code (or, only if prepared with

a delivery point barcode (DPBC), the

numeric equivalent to the DPBC).

d. Meet the address quality and

coding standards of A800 and A950.

e. Bear the correct 5-digit, ZIP+4, or

DPBC, subject to C840.

f. Be marked, presorted, and

documented as specified in M820.

g. Meet the postage payment

standards in P013 and P200.

2.2 Rate Application

Barcoded rates apply to each piece

that also bears the correct ZIP+4 or

DPBC. Subject to M820, 3/5 Barcoded

rates apply to flat-size pieces in 5-digit

or 3-digit packages of six or more pieces

each, either correctly placed in 5-digit,

3-digit, ADC, or mixed ADC sacks or

palletized under M045. Basic Barcoded

rates apply to other pieces correctly

prepared under M820.

2.3 85% Rule

At least 85% of all pieces in a

Barcoded rate mailing (regardless of

presort or rate) must bear the correct

ZIP+4 or DPBC for the delivery address,

as defined by the standards for address
66644 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

quality and coding accuracy in A800

and A950. Remaining pieces must bear

the correct 5-digit barcode meeting the

applicable standards in C840.

Compliance with the 85% standard is

based on all mailed copies of an issue,

excluding those claimed at carrier route

rates.

E249 Discounts for Preferred

Periodicals

[Text of current E242, E244, and E245,

renumber as E249.1.0, 2.0, and 3.0,

respectively, with subsections

redesignated accordingly; no change in

text except to replace ‘‘second-class’’

with ‘‘Periodicals.’’]

1.0 ZIP+4 DISCOUNTS

1.1 All Pieces

All pieces in a ZIP+4 rate mailing

must:

a. Meet the basic standards for

Periodicals and for the category of

authorization in E211 and E212,

respectively.

b. Meet the physical standards in

C810.

c. Bear a delivery address that

includes the correct numeric ZIP+4 or 5-

digit ZIP Code (or, only if prepared with

a delivery point barcode (DPBC), the

numeric equivalent to the DPBC).

d. Meet the address quality and

coding standards of A800 and A950.

e. Meet the standards in C830 or, for

pieces with the correct DPBC, the

barcode standards in C840.

f. Be marked, presorted, and

documented as specified in M891 or

M892.

g. Meet the postage payment

standards in P013 and P200.

1.2 Rate Application

ZIP+4 rates apply to each piece that

also:

a. Is correctly presorted under M810

into the qualifying groups described in

1.7 and 1.8.

b. Has an address with the correct

numeric ZIP+4 code or bears the correct

DPBC.

1.3 Barcode Window

A mailpiece meeting the standards in

1.1 and 1.2, but with a barcode window

in the lower right corner, may be

eligible for any automation rate only if

the correct DPBC appears through the

window.

1.4 5-Digit Barcodes

ZIP+4 rate mailings may include

pieces with correct 5-digit barcodes if

those pieces meet the standards in 1.1

and 1.2 and the standards for 5-digit

barcodes in C840. Such pieces qualify

for ZIP+4 rates only if the barcode is

printed on the piece and the address

contains the correct numeric ZIP+4

code.

1.5 ZIP+4 Barcodes

ZIP+4 rate mailings may include

pieces with correct ZIP+4 barcodes if

the barcode is located in the address

block and those pieces meet the

standards in 1.1 and 1.2 and the

standards for ZIP+4 barcodes in C840.

Such pieces qualify for ZIP+4 rates only

if, additionally, the address contains the

correct numeric ZIP+4 code. Pieces that

bear a ZIP+4 barcode in the lower right

corner may not be included in a ZIP+4

rate mailing.

1.6 85% Rule

At least 85% of all pieces in a ZIP+4

rate mailing (regardless of presort or

rate) must bear the correct numeric

ZIP+4 code or DPBC for the delivery

address, as defined by the standards for

address quality and coding accuracy in

A800 and A950. The 85% requirement

applies to each mailing unless excepted

by other standards.

1.7 Qualifying Tray-Based Presort

In tray-based presort mailings under

M891:

a. In full or overflow 5-digit trays,

ZIP+4 coded or DPBC pieces qualify for

the Level H5/J5 ZIP+4 rates; other

pieces qualify for the Level H5/J5

presort rates.

b. In full or overflow optional city and

unique 3-digit trays, ZIP+4 coded or

DPBC pieces qualify for the Level H3/

J3 ZIP+4 rates; other pieces qualify for

the Level H3/J3 presort rates.

c. In full or overflow nonunique 3-

digit and SCF trays, ZIP+4 coded or

DPBC pieces qualify for the Level G/J1

ZIP+4 rates; other pieces qualify for the

Level G/J1 presort rates. One less-thanfull SCF tray for the SCF serving the

post office where the mailing is entered

is permitted.

d. In AADC, mixed AADC, and

working trays, ZIP+4 coded or DPBC

pieces qualify for the Level G/J1 ZIP+4

rates; other pieces qualify for the Level

G/J1 presort rates.

1.8 Qualifying Package-Based Presort

In package-based presort mailings

under M892:

a. In 5-digit packages of 10 or more

pieces each, ZIP+4 coded or DPBC

pieces qualify for the Level H5/J5 ZIP+4

rates; other pieces qualify for the Level

H5/J5 presort rates.

b. In optional city and unique 3-digit

packages of 50 or more pieces each,

ZIP+4 coded or DPBC pieces qualify for

the Level H3/J3 ZIP+4 rates; other

pieces qualify for the Level H3/J3

presort rates.

c. In nonunique 3-digit packages of 50

or more pieces each, ZIP+4 coded or

DPBC pieces qualify for the Level G/J1

ZIP+4 rates; other pieces qualify for the

Level G/J1 presort rates.

d. In the residual portion of the

mailing, ZIP+4 coded or DPBC pieces

qualify for the Level G/J1 ZIP+4 rates;

other pieces qualify for the Level G/J1

presort rates.

2.0 BARCODED DISCOUNTS

(LETTER-SIZE PIECES)

2.1 All Pieces

All pieces in a Barcoded rate lettersize mailing must:

a. Meet the basic standards for

Periodicals and for the category of

authorization in E211 and E212,

respectively.

b. Meet the physical standards in

C810.

c. Bear a delivery address that

includes the correct numeric ZIP+4 or 5-

digit ZIP Code (or, only if prepared with

a delivery point barcode (DPBC), the

numeric equivalent to the DPBC).

d. Meet the address quality and

coding standards of A800 and A950.

e. Be marked, presorted, and

documented as specified in M893,

M894, or M895.

f. Meet the postage payment standards

in P013 and P200.

g. Either bear the correct DPBC

meeting the barcode standards in C840

or meet the applicable standards in 2.5.

2.2 Rate Application

Barcoded rates apply to each piece

that also:

a. Is correctly presorted under M893,

M894, or M895 into the qualifying

groups described in 2.8, 2.9, and 2.10.

b. Bears the correct DPBC that meets

the barcode standards in C840.

c. Meets the applicable standards in

2.3 through 2.7.

2.3 Optional Preparation

At the mailer’s option, barcoded

Preferred Periodicals may be prepared

under the standards for Regular

Periodicals in M810, including presort.

Under this option, Preferred Periodicals

can claim Level H or Level G/J rates,

and may be combined (comailed) with

Regular Periodicals in the same mailing,

if all corresponding eligibility standards

in E231 and E241 for 3/5 and Basic,

respectively, are met, except that pieces

in 3-digit packages could earn the Level

H rate only when prepared for the

unique 3-digit ZIP Code destinations

identified in L002, Column A. Presort of

the combined mailing is based on the

total combined volume of pieces.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66645

2.4 Barcode Window

A mailpiece weighing 3 ounces or

less, meeting the standards in 2.1

through 2.3 but with a barcode window

in the lower right corner, may be

eligible for an automation rate only if

the correct DPBC appears through the

window.

2.5 Pieces Without DPBCs

Subject to 1.5 and 1.6, Barcoded rate

mailings may also include nonbarcoded,

5-digit barcoded, or ZIP+4 barcoded

pieces if each such piece (regardless of

rate) meets the standards in 2.1, has a

barcode clear zone in the lower right

corner meeting the reflectance standards

in C840, meets the applicable 5-digit or

ZIP+4 barcode standards in C840, and

does not have a window in the lower

right corner. Additionally, to qualify for

a ZIP+4 rate, subject to 2.8, 2.9, and

2.10:

a. Nonbarcoded and 5-digit barcoded

pieces must bear an address with the

correct ZIP+4 code and meet the

standards in C830.

b. ZIP+4 barcoded pieces must have

the barcode in the address block, meet

the standards in C830, and bear an

address with the correct ZIP+4 code.

2.6 85% Rule

Subject to 2.7, at least 85% of all

pieces in a Barcoded rate mailing

(regardless of presort or rate) must bear

the correct DPBC for the delivery

address, as defined by the standards for

address quality and coding accuracy in

A800 and A950. The 85% requirement

applies to each mailing unless excepted

by other standards.

2.7 100% Barcoding

Each piece must bear the correct

delivery point barcode:

a. In 5-digit trays in a tray-based

mailing under M893.

b. In 5-digit packages in a packagebased mailing under M894 or M895.

c. In any mailing containing heavy

letters (as defined in C810).

2.8 Qualifying Tray-Based Presort

In tray-based presort mailings under

M893:

a. Pieces in full or overflow 5-digit

trays qualify for the Level H5/J5

Barcoded rates.

b. In full or overflow optional city and

unique 3-digit trays, DPBC pieces

qualify for the Level H3/J3 Barcoded

rates; subject to 2.5, ZIP+4 coded nonDPBC pieces qualify for the Level H3/

J3 ZIP+4 rate; other pieces qualify for

the Level H3/J3 presort rates.

c. In full or overflow nonunique 3-

digit and SCF trays, DPBC pieces qualify

for the Level G/J1 Barcoded rates;

subject to 2.5, ZIP+4 coded non-DPBC

pieces qualify for the Level G/J1 ZIP+4

rates; other pieces qualify for the Level

G/J1 presort rates. One less-than-full

SCF tray for the SCF serving the post

office where the mailing is entered is

permitted.

d. In AADC, mixed AADC, and

working trays, DPBC pieces qualify for

the Level G/J1 Barcoded rates; subject to

2.5, ZIP+4 coded non-DPBC pieces

qualify for the Level G/J1 ZIP+4 rates;

other pieces qualify for the Level G/J1

presort rates.

2.9 Qualifying Two-Tier PackageBased Presort

In two-tier package-based presort

mailings under M894:

a. Pieces in 5-digit packages of 10 or

more pieces each qualify for the Level

H5/J5 Barcoded rates.

b. In optional city and unique 3-digit

packages of 50 or more pieces each,

DPBC pieces qualify for the Level H3/

J3 Barcoded rates; subject to 2.5, ZIP+4

coded non-DPBC pieces qualify for the

Level H3/J3 ZIP+4 rates; other pieces

qualify for the Level H3/J3 presort rates.

c. In nonunique 3-digit packages of 50

or more pieces each, DPBC pieces

qualify for the Level G/J1 Barcoded

rates; subject to 2.5, ZIP+4 coded nonDPBC pieces qualify for the Level G/J1

ZIP+4 rates; other pieces qualify for the

Level G/J1 presort rates.

d. In residual trays, DPBC pieces

qualify for the Level G/J1 Barcoded

rates; subject to 2.5, ZIP+4 coded nonDPBC pieces qualify for the Level G/J1

ZIP+4 rates; other pieces qualify for the

Level G/J1 presort rates.

2.10 Qualifying Three-Tier PackageBased Presort

In three-tier package-based presort

mailings under M895:

a. Pieces in 5-digit packages of 10 or

more pieces each in the 5-digit presort

tier qualify for the Level H5/J5 Barcoded

rates.

b. In optional city and unique 3-digit

packages of 50 or more pieces each in

the 3-digit tier, DPBC pieces qualify for

the Level H3/J3 Barcoded rates; subject

to 2.5, ZIP+4 coded non-DPBC pieces

qualify for the Level H3/J3 ZIP+4 rates;

other pieces qualify for the Level H3/J3

presort rates.

c. In nonunique 3-digit packages of 50

or more pieces each in the 3-digit

presort tier, DPBC pieces qualify for the

Level G/J1 Barcoded rate; subject to 2.5,

ZIP+4 coded non-DPBC pieces qualify

for the Level G/J1 ZIP+4 rates; other

pieces qualify for the Level G/J1 presort

rates.

d. In the residual presort tier, DPBC

pieces qualify for the Level G/J1

Barcoded rates; subject to 2.5, ZIP+4

coded non-DPBC pieces qualify for the

Level G/J1 ZIP+4 rates; other pieces

qualify for the Level G/J1 presort rates.

3.0 BARCODED DISCOUNTS (FLATSIZE PIECES)

3.1 All Pieces

All pieces in a Barcoded rate flat-size

mailing must:

a. Meet the basic standards for

Periodicals and for the category of

authorization in E211 and E212,

respectively.

b. Meet the physical standards in

C820.

c. Bear a delivery address that

includes the correct numeric ZIP+4

code, numeric 5-digit ZIP Code, or

numeric equivalent to the delivery point

barcode (DPBC).

d. Meet the address quality and

coding standards of A800 and A950.

e. Have the correct 5-digit, ZIP+4, or

DPBC, subject to C840, except for pieces

in specific portions of mailings prepared

under M897.

f. Be presorted and documented as

specified in M897.

g. Meet the postage payment

standards in P013 and P200.

3.2 Rate Application

Barcoded rates apply to each piece

that also:

a. Is correctly presorted under M897

into the qualifying groups described in

3.6.

b. Bears the correct ZIP+4 or DPBC.

3.3 Optional Preparation

At the mailer’s option, barcoded

Preferred Periodicals may be prepared

under the standards for Regular

Periodicals in M820, including presort.

Under this option, Preferred Periodicals

can claim Level H or Level G/J rates,

and may be combined (comailed) with

Regular Periodicals in the same mailing,

if all corresponding eligibility standards

in E231 and E241 for 3/5 and Basic,

respectively, are met, except that pieces

in 3-digit packages could earn the Level

H rate only when prepared for the

unique 3-digit ZIP Code destinations

identified in L002, Column A. Presort of

the combined mailing is based on the

total combined volume of pieces.

3.4 5–Digit Barcodes

Barcoded rate mailings may include

pieces with correct 5-digit barcodes if

those pieces meet the standards in 3.1

through 3.3 and the standards for 5-digit

barcodes in C840. Pieces with a 5-digit

barcode could be eligible for a presort

rate under 3.6.
66646 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

3.5 85% Rule

At least 85% of all pieces in a

Barcoded rate mailing (regardless of

presort or rate) must bear the correct

ZIP+4 or DPBC for the delivery address,

as defined by the standards for address

quality and coding accuracy in A800

and A950. The 85% requirement applies

to each mailing unless excepted by

other standards. Barcoded rate mailings

not meeting the 85% rule must be

prepared under corresponding

standards in M897.

3.6 Qualifying Presort

Barcoded and presort rates apply as

follows:

a. In 5-digit packages of six or more

pieces each, ZIP+4 or DPBC pieces

qualify for the Level H5/J5 Barcoded

rates; 5-digit barcoded pieces (and

nonbarcoded pieces where permitted)

qualify for the Level H5/J5 presort rates.

b. In optional city or unique 3-digit

packages of six or more pieces each,

ZIP+4 or DPBC pieces qualify for the

Level H3/J3 Barcoded rates; 5-digit

barcoded pieces qualify for the Level

H3/J3 presort rates.

c. In nonunique 3-digit and SCF

packages, or in 5-digit, optional city, or

unique 3-digit packages of fewer than

six pieces, or in residual packages,

ZIP+4 or DPBC pieces qualify for the

Level G/J1 Barcoded rates; 5-digit

barcoded pieces qualify for the Level G/

J1 presort rates.

E250 Destination Entry

1.0 DSCF

1.1 Eligibility

Copies not eligible for in-county rates

qualify for the destination SCF (DSCF)

rates if:

a. For Publications Service

publications, the copies are addressed

for delivery in the service area of the

SCF at which they are entered, and

prepared in a 3-digit or finer sack or

tray, or an SCF or finer pallet.

b. For other Periodicals publications,

the copies are addressed for delivery in

the same SCF service area as the entry

post office, regardless of the type of

package, pallet, sack, or tray in which

they are prepared.

1.2 Rates

DSCF rates include a pound rate and

a discount per piece. Pieces claimed at

DSCF rates must also meet the standards

for any automation or presort rate

claimed and for the postage payment

method used.

1.3 Authorized Entry

Publications must have an authorized

entry at each post office where mail is

deposited at DSCF rates. Only copies

deposited according to the distribution

plan authorized for that entry may be

claimed at these rates. DSCF rate mail

must be deposited at locations and

times specified by the entry office

postmaster.

1.4 Documentation

Subject to P012, the publisher must be

able to show compliance with 1.1

through 1.3, e.g., by package, bundle,

sack, tray, or pallet destination (as

appropriate), and the number of pieces

by presort level for each 5-digit ZIP

Code destination eligible for DSCF rates.

2.0 DDU

2.1 Eligibility

The destination delivery unit (DDU)

rate applies to pieces entered at the

facility designated by the USPS where

sequencing is performed for the carrier

route (city carrier route, rural route,

highway contract route, post office box

section, or general delivery unit) serving

the delivery address on the mailpiece.

Copies claimed at DDU rates must be

part of a carrier route package placed in

a carrier route or 5-digit carrier routes

sack or tray under M210, or correctly

palletized under M045, and otherwise

eligible for and claimed at a carrier

route or Level I or K rate. Except for the

standards applicable to preparing carrier

route or walk-sequence rate mail, there

is no additional minimum volume

required for a DDU rate mailing.

2.2 Rates

DDU rates include a pound rate and

a discount per piece. Pieces claimed at

DDU rates must also meet the standards

for any discount or rate claimed and

postage payment method used. A

mailing may contain copies claimed at

DDU rates and other copies claimed at

other rates if permitted by standard. No

separation by rate is required.

2.3 Maximum Volume

Except under 2.4, the same mailer

may not present for verification and

acceptance more than four DDU rate

mailings at the same destination postal

facility (or another acting as its agent) in

any 24-hour period. This limit may be

waived if local conditions permit. A

mailer may ask for such a waiver when

scheduling deposit of the mailings.

There is no maximum for plant-verified

drop shipments. This standard does not

apply to mailings presented to either the

publication’s authorized original entry

post office or an authorized additional

entry serving the place where the copies

were prepared for mailing, if that entry

post office is the destination postal

facility at which the DDU rate copies

must be deposited.

2.4 Authorized Entry

Publications must have an authorized

entry at each post office where mail is

entered at DDU rates. Only copies

entered according to the distribution

plan authorized for that entry may be

claimed at these rates. DDU rate mail

must be deposited at locations and

times specified by the entry office

postmaster.

2.5 Scheduling

Mailers may schedule deposit of DDU

rate mailings at least 24 hours in

advance by contacting the district office

in whose service area the destination

facility is located. Mailers must follow

the scheduled deposit time provided.

Mailers may request standing

appointments for renewable 6-month

periods by written application to the

district office in whose service area the

destination facility is located. Mixed

loads of Periodicals and Standard Mail

require advanced appointments for

deposit.

2.6 Documentation

Subject to P012, the publisher must be

able to show compliance with 2.1

through 2.5. If a carrier route rate is

claimed, the publisher must show the

number of copies and pieces for each

carrier route. If a walk-sequence rate is

claimed, the publisher must provide the

documentation required by the

corresponding standards.

E270 Preferred Rates

[In 1.1, 1.2c, 2.1, 5.1, 6.1, and 6.2,

replace ‘‘second-class’’ with

‘‘Periodicals’’; in 1.3, replace ‘‘secondclass mailing privileges’’ with

‘‘Periodicals mailing privileges.’’]

1.0 IN-COUNTY RATES

* * * * *

1.6 DDU Rate

Subject to E250, the DDU piece rate

applies to each piece claimed in the

pound rate portion at the DDU rate.

2.0 NONPROFIT RATES—1BASIC

INFORMATION

* * * * *

2.4 Destination Entry Rates

Subject to E250, the DDU or DSCF

piece rate applies to each piece claimed

in the pound rate portion at the

corresponding rate.

[Delete current 2.5.]

* * * * *
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66647

5.0 CLASSROOM RATES

* * * * *

5.5 Destination Entry Rates

Subject to E250, the DDU or DSCF

piece rate applies to each piece claimed

in the pound rate portion at the

corresponding rate.

[Delete current 5.6.]

6.0 SCIENCE-OF-AGRICULTURE

RATES

* * * * *

6.5 Destination Entry Rates

Subject to E250, the DDU or DSCF

piece rate applies to each piece claimed

in the pound rate portion at the

corresponding rate.

[Delete current 6.6.]

[Delete current E300 and E400; no

change to E500.]

* * * * *

E600 Standard Mail

E610 Basic Standards

E611 Standards Applicable to All

Standard Mail

1.0 GENERAL INFORMATION

1.1 Definition

Standard Mail consists of mailable

matter that is neither mailed or required

to be mailed as First-Class Mail nor

entered as Periodicals mail (except as

permitted or required by standard).

Standard Mail includes matter formerly

classified as third-class and fourth-class

mail. Though combined in Standard

Mail, matter from each former class

remains subject to separate and specific

classification, eligibility, and

preparation standards. Matter formerly

classified as third-class mail is referred

to as Standard Mail (A); matter formerly

classified as fourth-class mail is referred

to as Standard Mail (B). Use of the

unmodified term ‘‘Standard Mail’’

indicates that the reference applies to

both former third-class and former

fourth-class matter.

1.2 Not Sealed

Standard Mail is not sealed against

postal inspection. Regardless of physical

closure, the mailing of articles at

Standard Mail rates is consent by the

mailer to postal inspection of the

contents.

1.3 Written Additions

Markings that have the character of

personal correspondence require, with

certain exceptions, additional postage at

the First-Class rates. These written

additions and enclosures do not require

additional First-Class postage and may

be placed on the wrapper, on a tag or

label attached to the outside of a parcel,

or inside a parcel, either loose or

attached to an article:

a. Marks, numbers, names, or letters

describing the contents.

b. Words or phrases such as ‘‘Please

Do Not Open Until Christmas,’’ ‘‘Happy

Birthday, Mother.’’

c. Instructions and directions for the

use of the item mailed.

d. A manuscript dedication or

inscription not having the nature of

personal correspondence.

e. Marks to call attention to words or

passages in the text.

f. Corrections of typographical errors

in printed matter.

g. Manuscripts accompanying related

proof sheets and corrections of proof

sheets including corrections of

typographical and other errors, changes

in the text, insertions of new text,

marginal instructions to the printer, and

corrective rewrites of parts.

h. Handstamped imprints, unless the

added material is in itself personal or

converts the original matter to a

personal communication.

i. Matter mailable separately as

Standard Mail (A) printed on the

wrapper, envelope, tag, or label.

1.4 Invoice

An invoice, whether it also serves as

a bill, may be enclosed or placed in an

envelope (marked ‘‘Invoice Enclosed’’)

attached to the outside of a Standard

Mail mailpiece if it relates solely to the

matter with which it is mailed. The

invoice may show:

a. Names and addresses of the sender

and addressee.

b. Names and quantities of the articles

enclosed, descriptions of each (e.g.,

price, tax, style, stock number, size, and

quality, and, if defective, nature of

defects).

c. Order or file number, date of order,

date and manner of shipment, shipping

weight, postage paid, and initials or

name of packer or checker.

1.5 Incidental First-Class Attachments

and Enclosures

Incidental First-Class matter may be

enclosed in or attached to Standard Mail

(A) merchandise (including books but

excluding merchandise samples) or any

Standard Mail (B) mailpiece without

payment of First-Class postage. An

incidental First-Class attachment or

enclosure must be matter that, if mailed

separately, would require First-Class

postage, is closely associated with but

secondary to the host piece, and is

prepared not to encumber postal

processing. An incidental First-Class

attachment or enclosure may be a bill

for the product or publication, a

statement of account for past products

or publications, or a personal message

or greeting included with a product,

publication, or parcel. Postage at the

Standard Mail rate applicable to the

host piece is based on the combined

weight of the host piece and the

incidental First-Class attachment or

enclosure.

1.6 Fees

The fee for manual or automated

address correction service is charged per

notice issued.

1.7 Addressing

Each piece of Standard Mail must

bear a delivery address. Alternative

address formats or detached address

labels may be used, subject to A040 or

A060, respectively.

1.8 Documentation

A mailing statement, completed and

signed by the mailer, using the correct

USPS form or an approved facsimile,

must be submitted with each mailing

except for single-piece rate mailings in

which the correct postage is affixed to

each piece. Supporting documentation

might be required by the standards for

the rate claimed or postage payment

method used.

E612 Additional Standards Applicable

to Standard Mail (A)

1.0 WEIGHT

Standard Mail (A) must weigh less

than 16 ounces.

2.0 CONTENT

2.1 Circulars

Circulars, including printed letters

that, according to internal evidence, are

being sent in identical terms to more

than one person, are Standard Mail (A).

A circular does not lose its character as

such when a date and the names of the

addressee and sender are written

therein, nor by the correction in writing

of typographical errors.

2.2 Printed Matter

Printed matter weighing less than 16

ounces may be sent as Standard Mail

(A). For this standard, printed matter

means paper on which words, letters,

characters, figures, or images, or any

combination of them, not having the

character of a bill or statement of

account or of actual or personal

correspondence, are reproduced by any

process other than handwriting or

typewriting.

2.3 Computer-Prepared Material

Computer-prepared material is

considered printed matter. It is not
66648 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

considered to have the character of

actual or personal correspondence

merely because it contains:

a. Specific information about a

product offered for sale or lease (e.g.,

size, color, price) or a service being

offered (e.g., the name, address, and

telephone number of a company

representative).

b. Information relating the addressee

directly to an advertised product or

service.

c. Information such as the amount

paid for a previous purchase, pledge, or

donation, when associated with a sales

promotion or solicitation for donations.

3.0 ENCLOSURES AND

ATTACHMENTS

3.1 Nonincidental First-Class

Enclosures

Letters or other pieces of

nonincidental First-Class Mail, subject

to postage at First-Class rates, may be

enclosed with Standard Mail (A).

Postage for the First-Class enclosure

must be placed on the outside of the

mailpiece. It may be affixed separately

or added to the postage for the host

piece. The mailer must place the

endorsement ‘‘First-Class Mail

Enclosed’’ on the mailpiece, below the

postage and above the address.

3.2 Nonincidental First-Class

Attachments

Letters or other pieces of

nonincidental First-Class Mail may be

placed in an envelope and securely

attached to the address side of a

Standard Mail (A) mailpiece or of the

principal mailpiece, as applicable.

Combination envelopes or containers

with separate parts for the two classes

of mail may be used. The names and

addresses of the sender and addressee

must be placed on both the principal

mailpiece and the attachment.

Alternatively, the sender’s name and

address must be placed on one part and

the addressee’s name and address on the

other. If the mailpiece is a combination

container with inseparable parts or

compartments, the names and addresses

may appear on only one part. The

applicable Standard Mail (A) postage for

the Standard Mail (A) matter must be

prepaid and placed in the upper right

corner of the address space. Postage at

the applicable First-Class rate must be

paid for and affixed to the First-Class

attachment, unless other payment

methods are permitted by standard.

3.3 Attachment of Other Standard

Mail (A) Matter

The front cover page or the back cover

page of a Standard Mail (A) mailpiece

may bear an attachment that is other

Standard Mail (A) matter if:

a. Each piece in the mailing bears the

same attachment.

b. The material qualifies for and is

mailed at bulk rates.

c. The pieces bearing the attachment

are larger than 6 by 11 inches.

d. The attachment is secured so as not

to interfere with processing or delivery.

Folded or multipage attachments must

be secured to prevent opening during

handling.

e. The mailing is presorted to carrier

routes.

3.4 Protective Covers

A protective cover (outsert) on a

catalog or book must fully cover (to

within 3/4 inch of each edge) the main

body of the catalog or book, front and

back, or the entire piece must be

enclosed in a wrapper (a full sleeve or

envelope).

4.0 BULK RATES

4.1 General Information

Bulk rates apply to mailings meeting

the basic standards in E611 and the

standards for presort, automation, and

destination entry in E630, E640, and

E650, respectively, as appropriate for

the rate claimed. Nonprofit rates may be

used only by organizations authorized

by the USPS under E670. Bulk rate

Standard Mail (A) may not use registry,

insurance, special delivery, special

handling, certified, return receipt for

merchandise, and COD services. Not all

processing categories qualify for every

bulk rate.

4.2 Minimum Per Piece Rates

The minimum per piece rates (i.e., the

minimum postage that must be paid for

each piece) apply to Automation rate

and Enhanced Carrier Route rate pieces

weighing 0.2059 pound (3.2941 ounces)

or less, Regular rate pieces weighing

0.2067 pound (3.3067 ounces) or less,

and nonprofit rate pieces weighing

0.2149 pound (3.4383 ounces) or less.

The base postage rate applies to pieces

meeting minimum preparation

standards (e.g., basic presort) and may

be reduced if additional standards are

met. For the minimum per piece rates,

mail is generally categorized as either

‘‘letters’’ or ‘‘other than letters,’’ based

on the letter-size standard in C050 that

disregards address placement. The

exception is for Automation rates,

which are applied to the ‘‘other than

letters’’ category, based on the standards

in C820. Address placement is also used

to apply the aspect ratio standard for

letter-size automation rates in C810.

4.3 Piece/Pound Rates

Pieces exceeding the weight limits

specified in 4.2 are subject to a two-part

piece/pound rate that includes a fixed

charge per piece and a variable pound

charge based on weight. The base

postage rate applies to pieces meeting

the minimum preparation standards

(e.g., basic presort) and might be

reduced if additional standards are met.

4.4 Net Postage

The net postage rate that must be paid

is either the minimum per piece rate or

the piece/pound rate, as reduced in

either case by one or more discounts for

which the piece might be eligible. The

net postage rate is commonly designated

by the name of the primary discount

(e.g., carrier route rate, Barcoded rate,

DBMC rate).

4.5 Minimum Bulk Rate

Postage is computed at the applicable

rates on the entire bulk mailing to be

mailed at one time. Except as noted in

4.6, the total postage paid on any bulk

mailing may not be lower than the

amount determined by multiplying the

proper minimum per piece rate (less

applicable discounts) by the total

number of mailpieces. If the total

postage computed at pound rates, after

adding any adjustment for presort level,

is less than the minimum postage

charge, postage must be computed at the

minimum per piece rate.

4.6 Exception

When the postage computed at the

bulk Standard Mail (A) rates is higher

than a Standard Mail (B) rate for which

the matter and the mailing could qualify

except for its weight, the Standard Mail

(B) rate may be paid without adding

needless weight. All other standards for

bulk Standard Mail (A) apply.

4.7 Annual Fees

Bulk rate Standard Mail (A) is subject

to an annual fee once each 12-month

period. The fee may be paid in advance

only for the next year and only during

the last 30 days of the current service

period. The fee charged is that in effect

on the date of payment. Other standards

apply, based on how postage is paid:

a. When mailings are paid with meter

or precanceled stamps, each mailer who

enters mailings at the regular or

nonprofit bulk rates must pay an annual

bulk mailing fee at each post office of

mailing. Persons or organizations paying

this fee may enter mail of their clients

as well as their own mail.

b. When a mailing is paid with a

permit imprint, the mailer whose permit

imprint is on the mailpiece must put

that permit number on the mailing
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66649

statement and must pay the annual bulk

mailing fee for that permit. This fee is

separate from the fee that must be paid

when applying to use permit imprints.

4.8 Merging

Generally, mailers may merge similar

bulk Standard Mail (A) matter prepared

for mailing at the same time into a

single mailing. Differences in text,

address labels, and address lists or list

key numbers do not prohibit the mailer

from merging and presorting mailings.

Pieces with different methods of postage

payment may be combined in the same

mailing only if authorized by the USPS.

Pieces of nonidentical weight, if merged

in the same mailing, must bear the

correct postage when mailed, unless

otherwise authorized by the USPS.

Pieces at Nonprofit, Regular, Enhanced

Carrier Route, and Automation rates

must be prepared as separate mailings

unless specifically excepted. Only

Regular, Enhanced Carrier Route, and

Automation may be reported on the

same mailing statement and

documentation.

4.9 Preparation

Each Nonprofit, Regular, Enhanced

Carrier Route, or Automation rate

mailing must be prepared under these

general standards:

a. All pieces in a mailing must be of

the same processing category, except

that irregular and machinable parcels

may be commingled in 5-digit sacks or

on 5-digit pallets.

b. Each mailing must contain at least

200 pieces or 50 pounds of pieces. Other

volume standards can also apply, based

on the rate claimed.

c. All pieces in a bulk mailing must

be marked and presorted together under

the standards in M600 applicable to the

rate claimed.

d. Each piece must bear the

addressee’s name and delivery address,

including the correct ZIP Code or ZIP+4

code, unless an alternative address

format is used subject to A040. Pieces in

automation rate mailings, or pieces

prepared with detached address labels,

are subject to additional standards.

e. Postage must be paid under the

standards in P600 with precanceled

stamps, postage meter, or permit

imprint.

f. Mailings must be documented

under P012 and the standards for the

rate claimed.

g. Each piece must meet the standards

applicable to any other rate or discount

claimed.

h. Any POSTNET barcode on a

mailpiece must meet the standards in

C840 and A950 and be the correct

barcode for the delivery address.

i. Mailings must be deposited at a

business mail entry unit of the post

office where the postage permit or

license is held and the annual bulk fee

paid, unless deposit elsewhere is

permitted by standard.

E613 Additional Standards Applicable

to Standard Mail (B)

1.0 WEIGHT

Standard Mail (B) consists of mailable

matter that (except Special or Library

Mail) weighs 16 ounces or more.

2.0 ZONED RATES

2.1 Required Mailing Office

Zone-rated Standard Mail (i.e., parcel

post and bound printed matter) must be

mailed at the post office from which the

zone rate postage was computed, except

under 2.2 and 2.3.

2.2 Redirected Mailings

Mailers who present large volumes of

zone-rated Standard Mail might be

allowed or directed to deposit such

mailings at another postal facility when

processing or logistics make such an

alternative desirable for the USPS,

subject to these conditions:

a. Zoned postage need not be

recomputed if both the original post

office of mailing and the alternative

facility to which the mailing is

redirected use the same zone chart for

computing zone-rated postage, based on

the 3-digit prefix of their ZIP Codes.

b. Postage must be recomputed on

pieces in mailings redirected to a postal

facility that uses a different zone chart

for computing zone-rated postage.

c. Postage for pieces claimed at the

local zone rates must be recomputed at

the applicable zone rate for the post

office to which the mailing was

redirected. Postage might also be

recomputed for other pieces that were

ineligible for the local zone rates but

that could become eligible at the post

office to which the mailing was

redirected.

2.3 BMC Acceptance

Mailers may present zone-rated

Standard Mail at a BMC for acceptance

if:

a. Metered postage is paid through a

postage meter licensed at the BMC

parent post office, or permit imprint

postage is paid through an advance

deposit account at the BMC parent post

office or another post office in the BMC

service area, unless otherwise permitted

by standard.

b. Zoned postage is computed from

the BMC parent post office.

c. The BMC is authorized by Form

4410 to act as acceptance agent for the

entry post office.

3.0 ADDRESSING

All Standard Mail (B) must bear the

sender’s return address and, except for

single-piece rate parcel post, the address

on each piece must include the correct

ZIP Code or ZIP+4 code.

E620 Single-Piece and Nonpresort

Bulk Standard Mail

E621 Single-Piece Standard Mail (A)

1.0 SINGLE-PIECE RATE

1.1 Rate Application

Single-piece rate Standard Mail (A) is

Standard Mail (A) matter not prepared

as required for a bulk rate. The singlepiece rates are applied to each piece (or

each item mailed under 1.2) based on its

weight. If the computed single-piece

Standard Mail (A) rate is higher than

any Standard Mail (B) rate for which the

mail could qualify except for weight, the

lower Standard Mail (B) rate may be

paid; all other standards for single-piece

Standard Mail (A) apply.

1.2 Keys and Identification Devices

Keys and identification devices

(identification cards or uncovered

identification tags) may be mailed as

single-piece Standard Mail (A) if they

bear, contain, or have securely attached

instructions to return to a name and

complete address of a person,

organization, or concern and a statement

guaranteeing postage payment on

delivery.

1.3 Nonstandard Surcharge

A nonstandard surcharge is assessed

on each single-piece Standard Mail (A)

mailpiece weighing 1 ounce or less

(except for keys and identification

devices) that exceeds the size limits in

C600.

1.4 Preparation

Keys and identification devices must

be prepared under 1.2. Each other

single-piece rate Standard Mail (A)

piece must have a delivery address and

the endorsement ‘‘Standard Mail.’’ No

minimum quantity is required unless

postage is paid with a permit imprint (in

which case the mailing must contain

200 pieces or 50 pounds of pieces).

There are no presort standards, but five

or more metered letter-size pieces and

any permit imprint pieces must be

‘‘faced’’ (so that the addresses face in

one direction) and bundled, boxed, or

packaged.

1.5 Postage Payment and

Documentation

Except for keys and identification

devices, full postage must be either

affixed in adhesive stamps, precanceled
66650 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

stamps, or meter postage or paid with

permit imprint. Documentation of

postage is required for mailings paid

with precanceled stamps, meter postage,

or permit imprint if all pieces in the

mailing are not of identical weight. A

mailing statement is required only if

postage is paid with a permit imprint.

1.6 Place of Mailing

Pieces paid with adhesive stamps may

be deposited into collection boxes or

other places where mail is accepted.

Pieces paid with meter postage,

precanceled stamps, or permit imprint

must be taken to the post office where

the license or permit is held, unless the

USPS authorizes otherwise.

E622 Parcel Post

1.0 BASIC STANDARDS

1.1 Description

Any Standard Mail (B) matter may be

mailed at parcel post rates. Parcel post

rates are based on zones, on whether a

parcel is mailed and delivered within a

BMC or ASF service area (as shown

below), and on the weight of the piece.

* * * * *

1.3 Enclosures

Parcel post may contain any printed

matter mailable as Standard Mail (A), in

addition to the enclosures and additions

listed in E611.

[Delete current E412.1.4; insert text of

current E412.2.0 through 4.0 as E622.2.0

through 4.0, respectively; in 3.1, replace

‘‘fourth-class’’ with ‘‘Standard Mail

(B)’’; no other change in text.]

E623 Bound Printed Matter

1.0 BASIC STANDARDS

1.1 Description

Bound printed matter is Standard

Mail weighing at least 1 pound but not

more than 10 pounds and meeting the

standards in E611 and E613. Bound

printed matter rates are based on zones

and the weight of the piece.

1.2 Characteristics

Bound printed matter must:

a. Consist of advertising, promotional,

directory, or editorial material or any

combination of these.

b. Be securely bound by permanent

fastenings such as staples, spiral

binding, glue, or stitching. Looseleaf

binders and similar fastenings are not

considered permanent.

c. Consist of sheets of which at least

90% are imprinted by any process other

than handwriting or typewriting with

letters, characters, figures, or images, or

any combination of these.

d. Not have the nature of personal

correspondence.

e. Not be stationery, such as pads of

blank printed forms.

1.3 Combining Pieces

A mailpiece containing two or more

bound printed matter pieces, each

weighing less than 1 pound but having

a total weight of at least 1 pound, is

mailable at the bound printed matter

rates.

1.4 Enclosures

In addition to the additions and

enclosures listed in E611 and E612,

bound printed matter may contain:

a. Any printed matter mailable as

Standard Mail (A).

b. A merchandise sample attached to

a bound page or to a permissible loose

enclosure, if the sample represents only

an incidental portion of the bound

printed matter piece and if the sample

is not provided exclusively or primarily

as a premium or an inducement

promoting the sale of the bound printed

matter piece. The sample may be

identified as a ‘‘free gift’’ where it is

clear that the sample is offered to the

addressee to market the gift product or

promote the sale of the bound printed

matter.

[Delete current 1.5.]

E624 Special Standard Mail

1.0 BASIC STANDARDS

1.1 Qualification

Special Standard Mail is Standard

Mail matter meeting the standards in

E611, E613, and those below. Special

Standard Mail rates are based on the

weight of each piece without regard to

zone.

1.2 Qualified Items

Only these articles may be mailed at

the Special Standard Mail rates:

a. Books, including books issued to

supplement other books of at least eight

printed pages, consisting wholly of

reading matter or scholarly

bibliography, or reading matter with

incidental blank spaces for notations

and containing no advertising matter

other than incidental announcements of

books. Advertising includes paid

advertising and the publishers’ own

advertising in display, classified, or

editorial style.

b. 16-millimeter or narrower width

films, which must be positive prints in

final form for viewing, and catalogs of

such films of 24 pages or more (at least

22 of which are printed). Films and film

catalogs sent to or from commercial

theaters do not qualify for the Special

Standard Mail rate.

c. Printed music, whether in bound or

sheet form.

d. Printed objective test materials and

their accessories used by or in behalf of

educational institutions to test ability,

aptitude, achievement, interests, and

other mental and personal qualities with

or without answers, test scores, or

identifying information recorded

thereon in writing or by mark.

e. Sound recordings and guides or

scripts prepared solely for use with such

recordings. Video recordings and player

piano rolls are classified as sound

recordings.

f. Playscripts and manuscripts for

books, periodicals, and music.

g. Printed educational reference charts

designed to instruct or train individuals

for improving or developing their

capabilities. Each chart must be a single

printed sheet of information designed

for educational reference. The

information on the chart, which may be

printed on one or both sides of the

sheet, must be conveyed primarily by

graphs, diagrams, tables, or other

nonnarrative matter. An educational

reference chart is normally but not

necessarily devoted to one subject. A

chart on which the information is

conveyed primarily by textual matter in

a narrative form does not qualify as a

printed educational reference chart for

mailing at the Special Standard Mail

rates even if it includes graphs,

diagrams, or tables. Examples of

qualifying charts include maps

produced primarily for educational

reference, tables of mathematical or

scientific equations, noun declensions

or verb conjugations used in the study

of languages, periodic table of elements,

botanical or zoological tables, and other

tables used in the study of science.

h. Looseleaf pages and their binders

consisting of medical information for

distribution to doctors, hospitals,

medical schools, and medical students.

i. Computer-readable media

containing prerecorded information and

guides or scripts prepared solely for use

with such media.

1.3 Loose Enclosures

In addition to the enclosures and

additions listed in E611, any printed

matter that is mailable as Standard Mail

(A) may be included loose with any

qualifying material mailed at the Special

Standard Mail rates.

1.4 Enclosures in Books

Enclosures in books mailed at Special

Standard Mail rates are subject to these

additional standards:

a. Either one envelope or one

addressed postcard may be bound into

the pages of a book. If also serving as an
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66651

order form, the envelope or card may be

in addition to the order form permitted

by 1.4b.

b. One order form may be bound into

the pages of a book. If also serving as an

envelope or postcard, the order form

may be in addition to the envelope or

card permitted by 1.4a.

c. Books may also contain

announcements of books appearing as

book pages. These announcements must

be incidental, exclusively devoted to

books and without extraneous

advertising of book-related materials or

services. Announcements may fully

describe the conditions and methods of

ordering books and may contain

ordering instructions for use with a

separate order form. No more than three

of these announcements may contain as

part of their format a single order form,

which may also serve as a postcard. The

order forms permitted with these

announcements are in addition to, and

not in place of, order forms that may be

enclosed under 1.4a or 1.4b.

[Delete current 1.5.]

E625 Library Mail

1.0 BASIC STANDARDS

1.1 Qualification

Library Mail is Standard Mail matter

that meets the standards in E611, E613,

and those below. Library Mail rates are

based on the weight of each piece

without regard to zone.

1.2 Qualified Sender, Recipient,

Content

Each piece must show in the address

or return address the name of a school,

college, university, public library,

museum, or herbarium or the name of

a nonprofit religious, educational,

scientific, philanthropic (charitable),

agricultural, labor, veterans, or fraternal

organization. For Library Mail

standards, these nonprofit organizations

are defined in E670. Only the articles

described in 1.4 through 1.5 may be

mailed at the Library Mail rate.

1.3 Preparation

When 1,000 or more pieces of

identical weight are mailed at the

Library Mail rates during a single day,

the pieces must be prepared under

M630.

1.4 Mailable Items Sent Between

The following items may be mailed at

the Library Mail rate when sent

between: (1) schools, colleges,

universities, public libraries, museums,

and herbariums and nonprofit religious,

educational, scientific, philanthropic

(charitable), agricultural, labor, veterans,

and fraternal organizations or

associations; (2) any such institution,

organization, or association, and an

individual who has no financial interest

in the sale, promotion, or distribution of

the materials; or (3) any such

institution, organization, or association

and a publisher, if such institution,

organization, or association has placed

an order to buy such materials for

delivery to itself:

a. Books, consisting wholly of reading

matter, scholarly bibliography, or

reading matter with incidental blank

spaces for notations and containing no

advertising except for incidental

announcements of books.

b. Printed music, whether in bound or

sheet form.

c. Bound volumes of academic theses,

whether in typewritten or duplicated

form.

d. Periodicals, whether bound or

unbound.

e. Sound recordings.

f. Other library materials in printed,

duplicated, or photographic form or in

the form of unpublished manuscripts.

g. Museum materials, specimens,

collections, teaching aids, printed

matter, and interpretive materials for

informing and furthering the

educational work and interests of

museums and herbariums.

1.5 Mailable Items Sent ‘‘To’’ or

‘‘From’’

The following specific items may be

mailed at the Library Mail rate when

sent to or from schools, colleges,

universities, public libraries, museums,

and herbariums and to or from nonprofit

religious, educational, scientific,

philanthropic (charitable), agricultural,

labor, veterans, or fraternal

organizations:

a. 16-millimeter or narrower width

films, filmstrips, transparencies, slides,

and microfilms. All must be positive

prints in final form for viewing.

b. Sound recordings.

c. Museum materials, specimens,

collections, teaching aids, printed

matter, and interpretive materials

intended for informing and furthering

the educational work and interests of

museums and herbariums.

d. Scientific or mathematical kits,

instruments, or other devices.

e. Catalogs of the materials in 1.5a

through 1.5d and guides or scripts

prepared solely for use with such

materials.

1.6 Enclosures in Books and Sound

Recordings

Books and sound recordings mailed at

the Library Mail rate may contain these

enclosures as well as the additions and

enclosures permitted under E611:

a. Either one envelope or one

addressed postcard. If also serving as an

order form, the envelope or card may be

in addition to the order form permitted

by 1.6b.

b. One order form. If also serving as

an envelope or postcard, the order form

may be in addition to the envelope or

card permitted by 1.6a.

c. With books, announcements of

books appearing in book pages or as

loose enclosures. These announcements

of books must be incidental and

exclusively devoted to books. They may

not contain extraneous advertising of

book-related materials or services.

Announcements may fully describe the

conditions and methods of ordering

books (such as by membership in book

clubs) and may contain ordering

instructions for use with the single

order form permitted in 1.6b.

d. With sound recordings,

announcements of sound recordings

appearing on title labels, on protective

sleeves, on the carton or wrapper, or on

loose enclosures. These announcements

of sound recordings must be incidental

and exclusively devoted to sound

recordings. They may not contain

extraneous advertising of recordingrelated materials or services.

Announcements may fully describe the

conditions and methods of ordering

sound recordings (such as by

membership in sound recording clubs)

and may contain ordering instructions

for use with the single order form

permitted in 1.6b.

1.7 Other Material

Material mailed at the Library Mail

rate other than books and sound

recordings may contain only those

additions and enclosures permitted

under E611.

[Delete current 1.8.]

E630 Presort Bulk Rates

E631 Regular Standard Mail

1.0 BASIC AND 3/5 RATES

Basic and 3/5 rates apply to Regular

Standard Mail letters, flats, and

machinable and irregular parcels,

weighing less than 16 ounces, that are

correctly prepared under M610. Basic

rates apply to pieces that do not meet

the standards for the 3/5 rates described

below. Basic rate and 3/5 rate pieces

may be prepared as part of the same

mailing, subject to a single minimum

volume standard. Pieces not presorted

to qualify for the 3/5 rate must be paid

at the basic rate and prepared

accordingly. Pieces may qualify for the

3/5 rate if:

a. In quantities of 150 or more lettersize pieces for a single 3-digit area,
66652 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

prepared in 5-digit or 3-digit packages of

10 or more pieces each and placed in 5-

digit or 3-digit trays.

b. In quantities of 150 or more

upgradable letter-size pieces (as defined

in M610) for a single 3-digit area and

placed in 5-digit or 3-digit trays.

c. In a 5-digit or 3-digit package of 10

or more flat-size pieces and placed in a

5-digit or 3-digit sack containing at least

125 pieces or 15 pounds of pieces.

d. In a 5-digit or 3-digit package of 10

or more flat-size pieces and sorted to the

appropriate level of pallet.

e. In a 5-digit, destination ASF (if

required), or destination BMC sack

containing at least 10 pounds of

machinable parcels. (The 3/5 rates are

available only if all possible 5-digit

sacks are prepared.)

f. On a 5-digit, destination ASF (if

required), or destination BMC pallet of

machinable parcels. (The 3/5 rates are

available only if all possible 5-digit

pallets are prepared.)

g. In a 5-digit or 3-digit sack of

irregular parcels.

2.0 ZIP CODE ACCURACY

Effective 3 months from the date on

which Classification Reform is

implemented, 5-digit ZIP Codes

included in addresses appearing on

pieces claimed at Regular Basic and 3⁄5

rates must have been verified and

corrected within 12 months of the date

of mailing, using a USPS-approved

method. Mailers must certify that this

standard has been met when the

corresponding mail is presented to the

USPS. This standard applies to each

address individually, not to a specific

list or mailing. An address meeting this

standard may be used in mailings at any

other rates to which the standard

applies throughout the 12-month period

following its most recent update.

E632 Enhanced Carrier Route

Standard Mail

1.0 BASIC STANDARDS

1.1 General

Enhanced Carrier Route rates apply to

Enhanced Carrier Route Standard Mail

letters, flats, and irregular parcels

(including merchandise samples

distributed using detached address

labels), weighing less than 16 ounces,

that are presented at one post office as

part of a single mailing of at least 200

pieces or 50 pounds of pieces and

correctly prepared under M620 to

carrier routes (city carrier routes, rural

routes, highway contract routes, post

office box sections, or general delivery

units). Enhanced Carrier Route rate flats

may not be more than 11–3/4 inches

wide, 14 inches long, or 3/4 inch thick.

Merchandise samples with detached

labels may exceed these dimensions if

the labels meet the standards in A060.

1.2 Pieces at Different Rates

An Enhanced Carrier Route mailing

may include pieces at more than one

Enhanced Carrier Route rate, subject to

a single minimum volume standard.

1.3 Carrier Route Information

Mailers must apply carrier route

codes to mailings using CASS-certified

software and the current USPS Carrier

Route Information System (CRIS)

scheme or another AIS product

containing carrier route information (see

A930). Mailers must have updated the

carrier route information within 90 days

before the mailing date.

1.4 Sequencing

Basic Carrier Route rate mail must be

prepared in carrier walk sequence or

line-of-travel (LOT) sequence, using

official LOT schemes prescribed by the

USPS (see M050). High Density and

Saturation rate mailings must be

prepared in carrier walk sequence, using

official schemes prescribed by the

USPS.

1.5 Eligible Presort

Carrier Route rates apply to pieces as

described below that are correctly

presorted under M620. Basic Carrier

Route rates apply unless pieces meet the

additional standards in 1.6 and 1.7 to

qualify for the High Density or

Saturation rates. Pieces may qualify for

the Carrier Route rates if:

a. In a carrier route package of 10 or

more letter-size pieces placed in a full

carrier route or any 5-digit carrier routes

tray.

b. In a carrier route package of 10 or

more flat-size pieces placed in a carrier

route sack containing at least 125 pieces

or 15 pounds of pieces, or in a 5-digit

carrier routes sack.

c. In a carrier route package of 10 or

more flat-size pieces correctly palletized

under M045.

d. In a carrier route sack of irregular

parcels containing 125 pieces or 15

pounds of pieces, in a carrier route

carton(s) of merchandise samples

prepared with detached address labels

under A060 containing a total of 125

pieces or 15 pounds of pieces, or in a

5-digit carrier routes sack or carton.

(Pieces must be in packages of 10 or

more irregular parcels each if packaging

is required under M610.)

1.6 Addressing—High Density and

Saturation Mail

High Density and Saturation rate mail

may be prepared with detached address

labels, subject to A060, or with an

alternative addressing format, subject to

A040. High Density pieces must have a

complete delivery address or an address

in occupant or exceptional format.

Saturation pieces addressed for delivery

on a city carrier route must have a

complete delivery address or an address

in occupant or exceptional format,

except that official mail from certain

government entities may also use the

simplified format. Saturation pieces for

delivery on rural or highway contract

routes, or through general delivery or a

post office box, must have a complete

delivery address or an alternative

address format.

1.7 Density Standards—High Density

and Saturation Mail

High Density and Saturation rate

mailings are subject to these density

standards:

a. There is no minimum volume per

5-digit ZIP Code delivery area. Pieces

need not be sent to all carrier routes

within a 5-digit delivery area.

b. For the High Density rate, at least

125 pieces must be prepared for each

carrier route for which that discount is

claimed, except that fewer pieces may

be prepared and the High Density rate

may be claimed for carrier routes of 124

or fewer possible deliveries if a piece is

addressed to every possible delivery on

the route. Multiple pieces per delivery

address can count toward this density

standard.

c. For the Saturation rate, pieces must

be addressed either to 90% or more of

the active residential addresses or 75%

or more of the total number of active

possible delivery addresses, whichever

is less, on each carrier route receiving

this mail, except that mail addressed in

the simplified address format must meet

the 100% coverage standard in A040.

Multiple pieces per delivery address do

not count toward this delivery standard.

Sacks with fewer than 125 pieces and

less than 15 pounds of pieces may be

prepared to a carrier route when the

Saturation rate is claimed for the

contents and the applicable density

standard is met.

E633 Bulk Bound Printed Matter

1.0 BASIC INFORMATION

1.1 Preparation

Bulk bound printed matter must meet

the basic standards in E623 and the

applicable preparation standards in

M630. Mailings may contain

nonidentical-weight pieces only if the

correct postage is affixed to each piece

or if the RCSC serving the office of

mailing has authorized payment of

postage by permit imprint. Each mailing
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66653

must contain 300 or more pieces of

bound printed matter. Insurance, special

delivery, special handling, and COD

services may be used, but selective use

of these services for individual parcels

must be approved by the RCSC.

1.2 Additional Standards for Carrier

Route

Carrier route bulk bound printed

matter is subject to these additional

standards:

a. Each mailing must contain 300 or

more pieces presorted under M630 into

groups of at least 10 pieces, 20 pounds,

or 1,000 cubic inches each for the same

carrier route, rural route, highway

contract route, post office box section,

or general delivery unit.

b. Residual pieces (not sorted as

described in 1.2a) do not count toward

the minimum specified in 1.2a, are

ineligible for the carrier route presort

level rate, and must have postage paid

at the appropriate bulk bound printed

matter rate. Residual pieces may be

included in a carrier route presort rate

mailing and be endorsed ‘‘Carrier Route

Presort’’ or ‘‘CAR–RT SORT.’’ The

number of residual pieces to any single

5-digit ZIP Code area may not exceed

5% of the total qualifying presorted

carrier route pieces addressed to that 5-

digit area. Residual pieces must be

separated from the pieces that qualify

for the carrier route rate and must be

correctly prepared under M630.

c. Mailers must apply carrier route

codes to mailings using CASS-certified

software and the current USPS Carrier

Route Information System (CRIS)

scheme or another AIS product

containing carrier route information (see

A930). Mailers must have updated the

carrier route information within 90 days

of the mailing date.

E634 Presorted Special Standard Mail

1.0 BASIC INFORMATION

The Presorted Special Standard Mail

rates apply to Special Standard Mail

rate matter mailed in minimum

quantities at a place and time

designated by the postmaster, subject to

the preparation standards in M630. The

size and content of each piece in the

mailing does not need to be identical.

Nonidentical pieces may be merged,

presorted together, and presented as a

single mailing either with postage paid

with a permit imprint if authorized by

the RCSC serving the post office of

mailing, or with the correct postage

affixed to each piece in the mailing.

2.0 PRESORT RATES

2.1 Mailing Fee

A mailing fee must be paid once each

12-month period at each office of

mailing by or for any person who mails

at the Presorted Special Standard Mail

rates. The fee may be paid in advance

only for the next year and only during

the last 30 days of the current service

period. The fee charged is that in effect

on the date of payment.

2.2 One Presort Level

A Presorted Special Standard Mail

rate mailing receives only one level of

presort rate. The mailer may, however,

divide a mailing into two or more

mailings with separate mailing

statements to use both levels of presort

rates. Pieces that do not qualify for a

presort rate must be presented for

mailing under a separate mailing

statement if postage is paid with a

permit imprint.

2.3 Definitions

For this standard:

a. A ‘‘full sack’’ means either at least

eight pieces or a quantity of pieces

equaling at least 1,000 cubic inches of

volume or weighing from 20 to 70

pounds.

b. A ‘‘substantially full sack’’ means

either at least four pieces or a quantity

of pieces equaling at least 1,000 cubic

inches of volume or weighing from 20

to 70 pounds.

2.4 5-Digit Rate

To qualify for the Presorted Special

Standard Mail 5-digit rate, a piece must

be in a mailing of at least 500 pieces

receiving identical service, properly

prepared and presorted either under

M630 to full 5-digit sacks or under

M045 to 5-digit pallets. These

conditions also apply:

a. Mailings of at least 500

nonmachinable outside parcels may

qualify for the Presorted Special

Standard Mail 5-digit rate if prepared to

preserve presort by 5-digit ZIP Code as

prescribed by the mailing office

postmaster. The postmaster may require

up to a 24-hour notice before the

mailing is presented.

b. Mailings prepared as palletized

bundles must consist of 5-digit bundles

each containing at least eight pieces, or

a quantity of pieces equaling 1,000

cubic inches of volume or weighing 20

pounds. No bundle may exceed 40

pounds. If there is more than 20 pounds

of mail to a 5-digit destination, mailers

must prepare the minimum number of

bundles that do not exceed 40 pounds

each.

2.5 BMC Rate

To qualify for the Presorted Special

Standard Mail BMC rate, a piece must

be in a mailing of at least 500 sacked

pieces receiving identical service,

properly prepared and presorted either

under M630 to full or substantially full

bulk mail center (BMC) sacks or under

M045 to BMC pallets. Mailings of at

least 500 nonmachinable outside parcels

may qualify for the Presorted Special

Standard Mail BMC rate if prepared to

preserve presort by BMC as prescribed

by the mailing office postmaster. The

postmaster may require up to a 24-hour

notice before the mailing is presented.

E639 Nonprofit Standard Mail

[Text of current eligibility standards in

E331 and E332 is retained and

renumbered for nonprofit rates only as

E639.1.0; text of current eligibility

standards in E333 and E334 is retained

and renumbered for nonprofit rates only

as E639.2.0 and 3.0, respectively.]

1.0 BASIC AND 3/5 RATES

1.1 Qualifying Pieces

Basic and 3/5 rates apply to Nonprofit

Standard Mail letters, flats, and

machinable and irregular parcels,

weighing less than 16 ounces, that are

correctly prepared under M692. Basic

rates apply to pieces that do not meet

the standards for the 3/5 rates described

below. Basic rate and 3/5 rate pieces

may be prepared as part of the same

mailing, subject to a single minimum

volume standard. Pieces not presorted

to qualify for the 3/5 rate must be paid

at the basic rate and prepared

accordingly. Pieces may qualify for the

3/5 rate if correctly prepared:

a. In 5-digit or 3-digit packages of 10

or more pieces each, placed in 5-digit or

3-digit sacks that contain at least 125

pieces or 15 pounds of pieces.

b. In 5-digit or 3-digit packages of 10

or more pieces each, placed in 5-digit or

3-digit trays.

c. In full or overflow 5-digit, 3-digit,

or SCF trays, prepared under the

standards for ZIP+4 tray-based mailings

in M891.

d. In 5-digit packages of 10 or more

pieces each, or 3-digit packages of 50 or

more pieces each, prepared under the

standards for ZIP+4 package-based

mailings in M892.

e. In 5-digit, 3-digit, or SCF trays,

prepared under the standards for lettersize ZIP+4 Barcoded tray-based mailings

in M893.

f. In 5-digit packages of 10 or more

pieces each, or 3-digit packages of 50 or

more pieces each, prepared under the

standards for letter-size ZIP+4 Barcoded
66654 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

package-based mailings in M894 and

M895.

g. In 5-digit or 3-digit packages of 10

or more pieces each, prepared under the

standards for flat-size 3/5 ZIP+4

Barcoded rate mailings in M897.

h. In a 5-digit or 3-digit package of 10

or more pieces palletized under M045.

i. In a 5-digit, destination ASF (if

required), or destination BMC sack

containing at least 10 pounds of

machinable parcels. (The 3/5 rates are

available only if all possible 5-digit

sacks are prepared.)

j. On a 5-digit or destination BMC

pallet of machinable parcels. (The 3/5

rates are available only if all possible 5-

digit pallets are prepared.)

k. In a 5-digit or 3-digit sack of

irregular parcels.

1.2 Optional Preparation

At the mailer’s option, Nonprofit

Standard Mail may be prepared under

the standards for Regular Standard Mail

in M610, including presort. Under this

option, Nonprofit Standard Mail can

claim Nonprofit Basic or 3/5 rates, and

may be combined (comailed) with

Regular Standard Mail in the same

mailing, if all corresponding eligibility

standards in E631 for Regular Basic and

3/5 rates, respectively, are met. Presort

of the combined mailing is based on the

total combined volume of pieces.

1.3 Carrier Route Pieces

A 3/5 rate mailing may not include

pieces claimed at the carrier route

presort or walk-sequence rates. The 3/5

rate pieces and carrier route presort or

walk-sequence rate pieces may be

reported on the same mailing statement

only under D600.

2.0 CARRIER ROUTE RATES

2.1 General

All pieces in a carrier route rate

mailing must be presented at one post

office as part of a single mailing of at

least 200 pieces or 50 pounds of pieces

prepared under M693 to carrier routes

(city carrier routes, rural routes,

highway contract routes, post office box

sections, or general delivery units).

Pieces may not be more than 113⁄4

inches wide, 14 inches long, or 3⁄4 inch

thick. Merchandise samples with

detached labels may exceed these

dimensions if the labels meet the

standards in A060.

2.2 Optional Preparation

At the mailer’s option, carrier route

Nonprofit Standard Mail may be

prepared under the standards for

Enhanced Carrier Route Standard Mail

in M620, including presort. Under this

option, Nonprofit Standard Mail can

claim Nonprofit carrier route rates, and

may be combined (comailed) with

Enhanced Carrier Route Standard Mail

in the same mailing, if all corresponding

eligibility standards in E632 for

Enhanced Carrier Route Basic Carrier

Route rate are met. Presort of the

combined mailing is based on the total

combined volume of pieces.

2.3 Other Rates

A carrier route rate mailing may

include pieces claimed at the basic rate

if the entire mailing meets the standard

in 3.1. The basic rate pieces must be

prepared under M692, but they do not

have to meet a separate 200-piece/50-

pound minimum. A carrier route rate

mailing may not include pieces claimed

at the 3/5 rates. The 3/5 rate and carrier

route rate pieces may be reported on the

same mailing statement only under

D600.

2.4 Required Listing

At the time of mailing, the mailer

must give the post office a list of the

number of qualifying pieces to each 5-

digit ZIP Code area. After the first

mailing, the postmaster may authorize

the mailer to keep the records and

submit them on request. The mailer

must keep these records for 90 days

after the mailing date, or until any

action pending on the recalculation of

postage is resolved to USPS satisfaction.

2.5 Carrier Route Information

Mailers must presort mail to carrier

routes using the current USPS Carrier

Route Information System (CRIS)

scheme (see A930). Mailers must have

incorporated CRIS changes in their

mailings within 90 days before the date

of mailing.

2.6 Qualifying Presort

Each qualifying piece must be

correctly prepared under M693 as part

of a group of 10 or more pieces in the

same carrier route package that, in turn,

is placed in a carrier route, 5-digit

carrier routes, or 3-digit carrier routes

tray or sack. To carrier route and 5-digit

carrier routes destinations, trays must be

full and sacks must contain at least 125

pieces or 15 pounds of pieces.

Qualifying mail also includes:

a. Carrier route packages in a 5-digit

carrier routes tray that is less than full,

or in a 5-digit carrier routes sack that

contains fewer than 125 pieces and less

than 15 pounds of pieces if that 5-digit

area does not have enough residential

deliveries to meet the applicable full

tray or 125-piece/15-pound sack

minimum at a 90% saturation level.

b. The last tray or sack to a 3-digit ZIP

Code destination. The last tray may be

less than full and the last sack may

contain fewer than 125 pieces and less

than 15 pounds of pieces.

c. Carrier route packages correctly

palletized under M045.

2.7 Residual

Residual pieces are those not

presorted under M693 to qualify for

carrier route rates. These pieces may be

included in a carrier route rate mailing

and may be marked ‘‘Carrier Route

Presort,’’ subject to these conditions:

a. Residual pieces do not count

toward the minimum quantity for

carrier route rates.

b. The number of residual pieces to

any single 5-digit ZIP Code area may not

exceed 5% of the total qualifying carrier

route presort pieces addressed to that 5-

digit ZIP Code area.

c. Residual pieces are not eligible for

the carrier route rate and must have

postage paid at the basic rate and must

be prepared as specified in M693.

3.0 WALK-SEQUENCE RATES

3.1 General

All pieces in a walk-sequence rate

mailing must be presented at one post

office as part of a single mailing of at

least 200 pieces or 50 pounds of pieces

correctly presorted to carrier routes (city

carrier routes, rural routes, highway

contract routes, post office box sections,

or general delivery units). Subject to

compliance with these standards, the

saturation walk-sequence rate may be

claimed by pieces in both the ‘‘letters’’

and ‘‘other-than-letters’’ categories. The

125-piece walk-sequence rate may be

claimed only by pieces in the ‘‘otherthan-letters’’ category, as defined in

E612.

3.2 Optional Preparation

At the mailer’s option, carrier route

Nonprofit Standard Mail may be

prepared under the standards for

Enhanced Carrier Route Standard Mail

in M620, including presort. Under this

option, Nonprofit Standard Mail can

claim Nonprofit 125-piece walksequence or saturation walk-sequence

rates, and may be combined (comailed)

with Enhanced Carrier Route Standard

Mail in the same mailing, if all

corresponding eligibility standards in

E632 for Enhanced Carrier Route High

Density or Saturation rates are met.

Presort of the combined mailing is based

on the total combined volume of pieces.

3.3 Other Rates

A walk-sequence rate mailing may

include pieces claimed at the carrier

route and basic rates, but only the

carrier route pieces count toward the

standard in 3.1. The basic rate pieces
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66655

must be prepared as required for

residual pieces under 1.0, but they do

not have to meet a separate 200-piece/

50-pound minimum. When presented to

the USPS, the trays or sacks containing

the walk-sequence rate pieces must be

separated from other trays or sacks. Any

effective separation method may be

used. A walk-sequence rate mailing may

not include pieces claimed at the 3/5

rate. The 3/5 rate and walk-sequence

rate pieces may be reported on the same

mailing statement only under D600.

3.4 Addressing

Walk-sequence rate mail must meet

these addressing standards:

a. Mailings may be prepared with

detached address labels, subject to

A060.

b. Pieces prepared with an alternative

addressing format must meet the

applicable standards in A040.

c. For the 125-piece walk-sequence

discount, each piece must have a

complete delivery address or an address

in occupant or exceptional format.

d. For the saturation walk-sequence

discount, each piece addressed for

delivery on a city carrier route must

have a complete delivery address or an

address in occupant or exceptional

format, except that official mail from

certain government entities may also

use the simplified format. Pieces for

delivery on rural or highway contract

routes, or through general delivery or a

post office box, must have a complete

delivery address or an alternative

address format.

3.5 Density Standards

Walk-sequence rate mailings are

subject to these density standards:

a. There is no minimum volume per

5-digit ZIP Code delivery area. Walksequence mail need not be sent to all

carrier routes within a 5-digit delivery

area.

b. For the 125-piece walk-sequence

discount, at least 125 walk-sequenced

pieces must be prepared for each carrier

route for which that discount is

claimed, except that for carrier routes of

124 or fewer possible deliveries, the

125-piece walk-sequence discount may

be claimed if a piece is addressed to

every possible delivery on the route.

Multiple pieces per delivery address can

count toward this density standard.

c. For the saturation walk-sequence

discount, pieces must be addressed

either to 90% or more of the active

residential addresses or 75% or more of

the total number of active possible

delivery addresses, whichever is less, on

each carrier route receiving this mail,

except that mail addressed in the

simplified address format must meet the

coverage standard in A040. Multiple

pieces per delivery address do not count

toward this density standard.

d. Sacks with fewer than 125 pieces

and less than 15 pounds of pieces may

be prepared to a carrier route when a

walk-sequence discount is claimed for

the contents and the applicable density

standard in 3.5b or 3.5c is met.

E640 Automation-Based Rates

E641 Automation Rates

1.0 BASIC STANDARDS

1.1 All Pieces

All pieces in an Automation Standard

Mail mailing must:

a. Meet all the basic standards for

Standard Mail in E611 and E612.

b. Be part of a single mailing of at

least 200 pieces or 50 pounds of pieces

of Standard Mail.

c. Be in the same processing category

and meet the physical standards in C810

(letters and cards) or C820 (flats).

d. Bear an address that includes the

correct numeric 5-digit ZIP Code or

ZIP+4 code, or the correct numeric

equivalent to the delivery point barcode

(DPBC).

e. Meet the address quality and

coding standards in 1.2 (if applicable),

A800, and A950.

f. Be marked, presorted, and

documented as specified in M891

(letters and cards) or M892 (flats).

g. Meet the postage payment

standards in P013 and P600.

h. Bear an accurate barcode, either the

correct DPBC if a card or letter (on the

piece or on an insert showing through

a barcode window) or the correct ZIP+4

barcode or DPBC if a flat, that meets the

barcode standards in C840. A letter-size

mailpiece with a barcode window in the

lower right corner must have the correct

DPBC appearing through that window.

1.2 Carrier Route Information

Mailers must apply carrier route

codes to mailings using CASS-certified

software and the current USPS Carrier

Route Information System (CRIS)

scheme or another AIS product

containing carrier route information (see

A930). Mailers must have updated the

carrier route information within 90 days

before the mailing date. Carrier route

rates for letter-size mail are available

only for those 5-digit ZIP Code areas

identified in the USPS AIS products

used for address coding.

1.3 Enclosed Reply Envelopes and

Cards

Effective January 1, 1997, all courtesy

reply and business reply envelopes and

cards provided to addressees as

enclosures in Automation Standard

Mail must bear the correct facing

identification mark (FIM) and delivery

point barcode for the delivery address of

the reply piece and must meet the

automation compatibility standards in

C810 or C820, as appropriate. Mailers

must certify that this standard has been

met when the corresponding mail is

presented to the USPS.

2.0 RATE APPLICATION

2.1 Letters and Cards

Automation Standard Mail rates apply

to each piece that is correctly presorted

under M810 into the corresponding

qualifying groups:

a. Pieces in full carrier route trays, or

in carrier route packages of 10 or more

pieces each placed in 5-digit carrier

routes trays, qualify for the Automation

Carrier Route rate. (Preparation to

qualify for the Carrier Route rate is

optional and need not be performed for

all carrier routes in a 5-digit area.)

b. Groups of 150 or more pieces in 5-

digit trays (and all pieces in one lessthan-full overflow tray) qualify for the

Automation 5–Digit rate. (Preparation to

qualify for the 5–Digit rate is optional.)

c. Groups of 150 or more pieces in 3-

digit or 3-digit scheme trays (and all

pieces in one less-than-full overflow

tray) qualify for the Automation 3-Digit

rate.

d. Pieces in full or overflow AADC

trays and in all mixed AADC trays

qualify for the Automation Basic rate.

2.2 Flats

Automation Standard Mail rates apply

to each piece that is correctly presorted

under M820 into the corresponding

qualifying groups:

a. Pieces in 5-digit or 3-digit packages

of 10 or more pieces each qualify for the

Automation 3/5 rate.

b. Pieces in ADC or mixed ADC

packages qualify for the Automation

Basic rate.

E649 Nonprofit Automation Rates

[Text of current eligibility standards in

E342, E344, and E345 is retained and

renumbered for nonprofit rates only as

E649.1.0, 2.0, and 3.0, respectively.]

1.0 ZIP+4 DISCOUNTS

1.1 All Pieces

All pieces in a Nonprofit Standard

Mail ZIP+4 rate mailing must:

a. Meet the standards in E611 and

E612.

b. Be presented at one post office as

part of a single mailing of at least 200

pieces or 50 pounds of pieces.

c. Meet the physical standards in

C810.

d. Have an delivery address with the

correct numeric ZIP+4 code or the
66656 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

correct numeric 5-digit ZIP Code. If

prepared with a delivery point barcode

(DPBC), it may also bear the numeric

equivalent to the DPBC.

e. Meet the address quality and

coding standards of A800 and A950.

f. Meet the standards in C830 or, for

pieces with the correct DPBC, the

barcode standards in C840.

g. Be marked, presorted, and

documented as specified in M891 or

M892.

h. Meet the postage payment

standards in P013 and P600.

i. Separately qualify under the

standard for any other discount claimed.

1.2 Rate Application

Nonprofit ZIP+4 rates apply to each

piece that also:

a. Is correctly presorted under M891

or M892 into the corresponding

qualifying groups described in 1.7 and

1.8.

b. Has an address with the correct

numeric ZIP+4 code or bears the correct

DPBC.

1.3 Barcode Window

A mailpiece meeting the standards in

1.1 and 1.2, but with a barcode window

in the lower right corner, may be

eligible for any Nonprofit automation

rate only if the correct DPBC appears

through the window.

1.4 5-Digit Barcodes

Nonprofit ZIP+4 rate mailings may

include pieces with correct 5-digit

barcodes if those pieces meet the

standards in 1.1 and 1.2 and the

standards for 5-digit barcodes in C840.

Such pieces may qualify for the

Nonprofit ZIP+4 rates only if the

barcode is printed on the piece and the

address contains the correct numeric

ZIP+4 code.

1.5 ZIP+4 Barcodes

Nonprofit ZIP+4 rate mailings may

include pieces with correct ZIP+4

barcodes if the barcode is located in the

address block and those pieces meet the

standards in 1.1 and 1.2 and the

standards for ZIP+4 barcodes in C840.

Such pieces may qualify for Nonprofit

ZIP+4 rates only if, additionally, the

address contains the correct numeric

ZIP+4 code. Pieces that bear a ZIP+4

barcode in the lower right corner may

not be included in a Nonprofit ZIP+4

rate mailing.

1.6 85% Rule

At least 85% of all pieces in a

Nonprofit ZIP+4 rate mailing (regardless

of presort or rate) must bear the correct

numeric ZIP+4 code or DPBC for the

delivery address, as defined by the

address quality and coding standards in

A800 and A950. The 85% requirement

applies to each mailing unless excepted

by other standards.

1.7 Qualifying Tray-Based Presort

In tray-based presort mailings under

M891, ZIP+4 coded or DPBC pieces in

full or overflow 5-digit, 3-digit, and SCF

trays qualify for the Nonprofit 3/5 ZIP+4

rate; other pieces qualify for the

Nonprofit 3/5 rate. One less-than-full

SCF tray for the origin SCF is permitted.

ZIP+4 coded or DPBC pieces in AADC,

mixed AADC, or working residual trays

qualify for the Nonprofit Basic ZIP+4

rate; other pieces qualify for the

Nonprofit Basic rate.

1.8 Qualifying Package-Based Presort

In package-based presort mailings

under M892, ZIP+4 coded or DPBC

pieces in 5-digit packages of 10 or more

pieces each, and 3-digit packages of 50

or more pieces each, qualify for the

Nonprofit 3/5 ZIP+4 rate; other pieces in

these packages qualify for the Nonprofit

3/5 rate. Residual ZIP+4 coded or DPBC

pieces qualify for the Nonprofit Basic

ZIP+4 rate; other pieces qualify for the

Nonprofit Basic rate.

2.0 BARCODED DISCOUNTS

(LETTER-SIZE PIECES)

2.1 All Pieces

All pieces in a Nonprofit Standard

Mail Barcoded rate letter-size mailing

must:

a. Meet the standards in E611 and

E612.

b. Be presented at one post office as

part of a single mailing of at least 200

pieces or 50 pounds of pieces.

c. Meet the physical standards in

C810.

d. Bear a delivery address that

includes the correct numeric ZIP+4

code or 5-digit ZIP Code (or, only if

prepared with a delivery point barcode

(DPBC), the numeric equivalent to the

DPBC).

e. Meet the address quality and

coding standards of A800 and A950.

f. Be marked, presorted, and

documented as specified in M893,

M894, or M895.

g. Meet the postage payment

standards in P013 and P600.

h. Separately qualify under the

standard for any other discount claimed.

i. Either bear the correct DPBC

meeting the barcode standards in C840

or meet the applicable standards in 2.5.

2.2 Rate Application

Nonprofit Barcoded rates apply to

each piece that also:

a. Is correctly presorted under M893,

M894, or M895 into the corresponding

qualifying groups described in 2.8, 2.9,

and 2.10.

b. Bears the correct DPBC that meets

the barcode standards in C840.

c. Meets the applicable standards in

2.3 through 2.7.

2.3 Optional Preparation

At the mailer’s option, barcoded

Nonprofit Standard Mail may be

prepared under the standards for

Automation Standard Mail in M820,

including presort. Under this option,

barcoded Nonprofit Standard Mail can

claim Nonprofit carrier route, 5-Digit

Barcoded, 3-Digit Barcoded, and Basic

Barcoded rates, and may be combined

(comailed) with Automation Standard

Mail in the same mailing, if all

corresponding eligibility standards in

E631 and E641 for Automation Carrier

Route, 5-Digit, 3-Digit, and Basic rates,

respectively, are met. Presort of the

combined mailing is based on the total

combined volume of pieces.

2.4 Barcode Window

A mailpiece weighing 3 ounces or

less, meeting the standards in 2.1

through 2.3 but with a barcode window

in the lower right corner, may be

eligible for any Nonprofit automation

rate only if the correct DPBC appears

through the window.

2.5 Pieces Without DPBCs

Subject to 2.5 and 2.6, Nonprofit

Barcoded rate mailings may also include

nonbarcoded, 5-digit barcoded, or ZIP+4

barcoded pieces if each such piece

(regardless of rate) meets the standards

in 2.1, has a barcode clear zone in the

lower right corner meeting the

reflectance standards in C840, meets the

applicable 5-digit or ZIP+4 barcode

standards in C840, and does not have a

window in the lower right corner.

Additionally, to qualify for a Nonprofit

ZIP+4 rate, subject to 2.8, 2.9, and 2.10:

a. Nonbarcoded and 5-digit barcoded

pieces must bear an address with the

correct ZIP+4 code and meet the

standards in C830.

b. ZIP+4 barcoded pieces must have

the barcode in the address block, meet

the standards in C830, and bear an

address with the correct ZIP+4 code.

2.6 85% Rule

Subject to 2.7, at least 85% of all

pieces in a Nonprofit Barcoded rate

mailing (regardless of presort or rate)

must bear the correct DPBC for the

delivery address, as defined by the

standards for address quality and coding

accuracy in A800 and A950. The 85%

requirement applies to each mailing

unless excepted by other standards.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66657

2.7 100% Barcoding

Each piece must bear the correct

delivery point barcode:

a. In 5-digit trays in a tray-based

mailing under M893.

b. In 5-digit packages in a packagebased mailing under M894 or M895.

c. In any mailing containing heavy

letters (as defined in C810).

2.8 Qualifying Tray-Based Presort

In tray-based presort mailings under

M893:

a. Pieces in full or overflow 5-digit

trays qualify for the 5-digit Nonprofit

Barcoded rate.

b. In full or overflow 3-digit and SCF

trays, DPBC pieces qualify for the 3-digit

Nonprofit Barcoded rate; subject to 2.5,

ZIP+4 coded non-DPBC pieces qualify

for the Nonprofit 3/5 ZIP+4 rate; other

pieces qualify for the Nonprofit 3/5 rate.

One less-than-full SCF tray for the SCF

serving the post office where the

mailing is entered is permitted.

c. In AADC, mixed AADC, and

working trays, DPBC pieces qualify for

the Nonprofit Basic Barcoded rate;

subject to 2.5, ZIP+4 coded non-DPBC

pieces qualify for the Nonprofit Basic

ZIP+4 rate; other pieces qualify for the

Nonprofit Basic rates.

2.9 Qualifying Two-Tier PackageBased Presort

In two-tier package-based presort

mailings under M894:

a. Pieces in 5-digit packages of 10 or

more pieces each qualify for the

Nonprofit 5-digit Barcoded rate.

b. In 3-digit packages of 50 or more

pieces each, DPBC pieces qualify for the

Nonprofit 3-digit Barcoded rates; subject

to 2.5, ZIP+4 coded non-DPBC pieces

qualify for the Nonprofit 3/5 ZIP+4 rate;

other pieces qualify for the Nonprofit 3/

5 rate.

c. In the residual portion, DPBC

pieces qualify for the Nonprofit Basic

Barcoded rate; subject to 2.5, ZIP+4

coded non-DPBC pieces qualify for the

Nonprofit Basic ZIP+4 rate; other pieces

qualify for Nonprofit Basic rate.

2.10 Qualifying Three-Tier PackageBased Presort

In three-tier package-based presort

mailings under M895:

a. Pieces in 5-digit packages of 10 or

more pieces each in the 5-digit presort

tier qualify for the Nonprofit 5-digit

Barcoded rate.

b. In 3-digit packages of 50 or more

pieces each in the 3-digit presort tier,

DPBC pieces qualify for the Nonprofit 3-

digit Barcoded rate; subject to 2.5, ZIP+4

coded non-DPBC pieces qualify for the

Nonprofit 3/5 ZIP+4 rate; other pieces

qualify for the Nonprofit 3/5 rate.

c. In the residual presort tier, DPBC

pieces qualify for the Nonprofit Basic

Barcoded rate; subject to 2.5, ZIP+4

coded non-DPBC pieces qualify for the

Nonprofit Basic ZIP+4 rate; other pieces

qualify for the Nonprofit Basic rate.

3.0 ZIP+4 BARCODED DISCOUNTS

(FLAT-SIZE PIECES)

3.1 All Pieces

All pieces in a Nonprofit Standard

Mail ZIP+4 Barcoded rate flat-size

mailing must:

a. Meet the standards in E611 and

E612.

b. Be presented at one post office as

part of a single mailing of at least 200

pieces or 50 pounds of pieces.

c. Meet the physical standards in

C820.

d. Bear a delivery address that

includes the correct numeric ZIP+4

code or 5-digit ZIP Code (or, only if

prepared with a delivery point barcode

(DPBC), the numeric equivalent to the

DPBC).

e. Meet the address quality and

coding standards of A800 and A950.

f. Bear the correct 5-digit, ZIP+4, or

DPBC, subject to C840, except for pieces

in specific portions of mailings prepared

under M897.

g. Be marked, presorted, and

documented as specified in M897.

h. Meet the postage payment

standards in P013 and P600.

i. Separately qualify under the

standard for any other discount claimed.

3.2 Rate Application

Nonprofit ZIP+4 Barcoded rates apply

to each piece that also:

a. Is correctly presorted under M897

into the qualifying groups described in

3.6.

b. Bears the correct ZIP+4 or DPBC.

3.3 Optional Preparation

At the mailer’s option, barcoded

Nonprofit Standard Mail may be

prepared under the standards for

Automation Standard Mail in M820,

including presort. Under this option,

barcoded Nonprofit Standard Mail can

claim Nonprofit 3/5–Digit Barcoded and

Basic Barcoded rates, and may be

combined (comailed) with Automation

Standard Mail in the same mailing, if all

corresponding eligibility standards in

E631 and E641 for Automation 3/5 and

Basic rates, respectively, are met.

Presort of the combined mailing is based

on the total combined volume of pieces.

3.4 5–Digit Barcodes

Nonprofit ZIP+4 Barcoded rate

mailings may include pieces with

correct 5-digit barcodes if those pieces

meet the standards in 3.1 through 3.3

and the standards for 5-digit barcodes in

C840. Pieces with a 5-digit barcode

could be eligible for a presort rate under

3.6.

3.5 85% Rule

Generally, at least 85% of all pieces

in a Nonprofit ZIP+4 Barcoded rate

mailing (regardless of presort or rate)

must bear the correct ZIP+4 or DPBC for

the delivery address, as defined by the

standards for address quality and coding

accuracy in A800 and A950. Remaining

pieces must bear the correct 5-digit

barcode meeting the applicable

standards in C840. The 85%

requirement applies to each mailing

unless excepted by other standards.

Nonprofit ZIP+4 Barcoded rate mailings

not meeting the 85% rule must be

prepared under corresponding

standards in M897.

3.6 Presort

In 5-digit or 3-digit packages of 10 or

more pieces each, ZIP+4 or DPBC pieces

can qualify for the Nonprofit 3/5 ZIP+4

Barcoded rate; 5-digit barcoded (and

nonbarcoded pieces where permitted)

pieces qualify for the Nonprofit 3/5 rate.

In SCF packages of 10 or more pieces

each, or in residual packages, ZIP+4 or

DPBC pieces qualify for the Nonprofit

Basic ZIP+4 Barcoded rate for flats; 5-

digit barcoded pieces qualify for the

Nonprofit Basic rate.

E650 Destination Entry Discounts

E651 Regular, Nonprofit, Enhanced

Carrier Route, and Automation

Standard Mail

[Text of current E350; in 1.4, replace

‘‘bulk third-class mail’’ with ‘‘bulk rate

Standard Mail (A)’’; in 3.9, replace

‘‘third-class mail’’ with ‘‘Standard Mail

(A)’’; revise 1.1 and 7.1 as shown below;

in 5.3 and 6.2, delete ‘‘SDC’’; no other

change in text.]

1.0 BASIC STANDARDS

1.1 Rate Application

Regular, Nonprofit, Enhanced Carrier

Route, and Automation Standard Mail

meeting the basic standards in E611 and

E612 may qualify for the destination

BMC, SCF, or DDU entry rates if

deposited at the correct destination

postal facility, subject to the general

standards below and the specific

standards in 5.0, 6.0, and 7.0,

respectively. Only one destination

reduction may be claimed for each

mailpiece.

* * * * *
66658 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

7.0 DELIVERY UNIT DISCOUNT

7.1 Definition

For this standard, ‘‘destination

delivery unit (DDU)’’ refers to a facility

designated by the USPS where

sequencing is performed for the carrier

route (city carrier route, rural route,

highway contract route, post office box

section, or general delivery unit) serving

the delivery address on the mailpiece.

* * * * *

[Delete 7.3.]

E652 Parcel Post

[Text of current E450; in 1.4, replace

‘‘fourth-class’’ with ‘‘Standard Mail

(B)’’; no other change in text.]

E670 Nonprofit (Special) Bulk Rates

[Text of current E370; in 1.1, 1.3, 2.1,

3.1, 3.3, 4.1, 4.2, 5.1, 5.2, 5.3, 5.4, 5.4a,

5.4b, 5.4c, 5.4d(1), 5.6a, 5.6b, 5.6b(1),

5.6b(2), 5.6b(3), 5.6e, 5.8, 5.9, 5.10, 5.11,

5.12, 6.0, 7.1, 7.3, 8.1, 8.3, 9.1, 9.2, 9.3,

9.4, 11.1, and 11.4, replace ‘‘special bulk

third-class rate[s],’’ ‘‘special bulk

rate[s],’’ or ‘‘special rate[s]’’ with

‘‘Nonprofit Standard Mail rate[s]’’; in

1.3, replace ‘‘for all bulk third-class mail

in E311 and E312’’ with ‘‘in E611 and

E612’’; in 3.3, 5.4d(2), 5.11, 9.2, and

9.3b, replace ‘‘third-class’’ with

‘‘Standard Mail (A)’’; in 5.8d, correct the

reference from E211.11.0 to E211; in

5.10c, correct the reference from

E370.5.0 to 5.0. No other change in text.]

F FORWARDING AND RELATED

SERVICES

F000 Basic Services

F010 Basic Information

[In 3.0d, replace ‘‘fourth-class’’ and

‘‘third-class’’ with ‘‘Standard Mail (B)’’

and ‘‘Standard Mail (A),’’ respectively;

in Exhibit 4.2, 5.2, 5.2a, 5.2b, 5.2e, 5.2f,

5.2g, 6.1, and 7.2, replace ‘‘secondclass’’ with ‘‘Periodicals’’; in 4.6b, 5.2e,

the table following 5.2g, 6.1, 7.1, and

8.1e, replace ‘‘third- or fourth-class’’

with ‘‘Standard Mail’’; in 4.6d and 6.3,

replace ‘‘fourth-class’’ with ‘‘Standard

Mail (B)’’; in 5.3, 5.3a, 5.3f, 5.3g, the

table following 5.3g, 6.2, 8.1a, 8.1b, and

8.1e, replace ‘‘[T]hird-class’’ with

‘‘Standard Mail (A)’’; in 5.4, 5.4b, 5.4c,

5.4d, and 5.4e, replace ‘‘[F]ourth-class’’

with ‘‘Standard Mail (B)’’; in 7.1a and

7.2, replace ‘‘second-, third-, or fourthclass’’ with ‘‘Periodicals or Standard

Mail’’; in 7.4, replace ‘‘special fourthclass’’ with ‘‘Special Standard Mail’’; in

8.1e, replace ‘‘third- and fourth-class’’

with ‘‘Standard Mail’’; no other change

in text.]

F020 Forwarding

[In 2.3, 2.4, and 2.6, replace ‘‘First-,

second-, and fourth-class mail and all

single-piece rate third-class mail’’ with

‘‘First-Class, Periodicals, Standard Mail

(B), and single-piece rate Standard Mail

(A)’’; in 3.4, replace ‘‘Second-[C]lass’’

with ‘‘Periodicals’’; in 3.5, replace

‘‘Third-[C]lass,’’ ‘‘fourth-class,’’ and

‘‘Special Fourth-Class’’ with ‘‘Standard

Mail (A),’’ ‘‘Standard Mail (B),’’ and

‘‘Special Standard Mail,’’ respectively;

in 3.6, replace ‘‘[F]ourth-[C]lass’’ with

‘‘Standard Mail (B)’’; no other change in

text.]

F030 Address Correction, Address

Change, and Return Services

[In 1.2 and 2.3, replace ‘‘[S]econd-

[C]lass’’ with ‘‘Periodicals’’; in 1.3,

replace ‘‘third- and fourth-class’’ and

‘‘First-, third-, or fourth-class’’ with

‘‘Standard Mail’’ and ‘‘First-Class and

Standard Mail,’’ respectively; in 3.2d,

replace ‘‘third-class’’ with ‘‘Standard

Mail (A)’’; in 3.2e, replace ‘‘fourthclass’’ with ‘‘Standard Mail (B)’’; no

other change in text.]

G GENERAL INFORMATION

[No change in Module G.]

L Labeling Lists

L000 General Use

L001 Optional Multi-ZIP Coded Post

Offices

As permitted by the standards for the

rate claimed, Preferred Periodicals

mailings may be sorted to the following

multicoded cities.

* * * * *

L002 3-Digit Destinations and SCFs

Instructions

[Revise the fourth paragraph and

footnote 1 as follows:]

* * * * *

SCFs for which mailers may claim

destination SCF Standard Mail (A) rates

or SCF zone Periodicals rates are the

SCFs serving a single 3-digit ZIP Code

area marked with three bullets in

Column A, and the SCFs serving more

than one 3-digit ZIP Code area in

Column B. Their respective service

areas are listed in Column C. Pieces for

ZIP Code areas not listed in Column C

may not be claimed at SCF rates.

* * * * * 1=Mail destinating in 3-digit ZIP Code area

008 must be labeled as shown in L601 for

Standard Mail machinable parcels and in

L004 for all other mail.

* * * * *

L003 Combined 3–Digit ZIP Code

Prefix Sortation

When permitted by the standards for

specific rates, pieces for the 3-digit ZIP

Code prefixes shown in column A may

be combined in trays labeled to the

corresponding destination shown in

column B. Line 2 on tray labels must

include ‘‘SCHEME’’ except as shown

below.

Column A 3-

Digit ZIP

Code Prefix

Combinations

Column B Label to

006–009 ...... SAN JUAN PR 006

010, 011,

013.

SPRINGFIELD MA 010

014, 015,

017.

WORCESTER MA 015

018, 019,

055.

MIDDLESEX-ESSEX MA 018

020, 023,

024.

BROCKTON MA 023

021, 022 ...... BOSTON MA 021

025, 026 ...... BUZZARDS BAY MA 025

027, 028 ...... PROVIDENCE RI 028

035, 036,

051–053,

059.

WHITE RIVER JCT VT 051

SCHEME B

037, 050 ...... WHITE RIVER JCT VT 050

SCHEME C

038, 039 ...... PORTSMOUTH NH 038

043, 045 ...... PORTLAND ME 043

054, 056 ...... BURLINGTON VT 054

057, 058 ...... WHITE RIVER JCT VT 057

SCHEME A

068, 069 ...... STAMFORD CT 068

074, 076 ...... HACKENSACK NJ 076

077, 088 ...... KILMER NJ 088

078, 079 ...... WEST JERSEY NJ 078

080, 081 ...... SOUTH JERSEY NJ 080

SCHEME A

082–084 ...... SOUTH JERSEY NJ 082

SCHEME B

085–087 ...... TRENTON NJ 085

110, 113,

114, 116.

QUEENS NY 110

120–123 ...... ALBANY NY 120

124, 125,

127.

MID-HUDSON NY 125

130–132 ...... SYRACUSE NY 130

133, 134 ...... UTICA NY 133

137–139 ...... BINGHAMTON NY 137

140–143 ...... BUFFALO NY 140

155, 157 ...... JOHNSTOWN PA 155

164, 165 ...... ERIE PA 164

169, 177 ...... WILLIAMSPORT PA 169

180, 181,

183.

LEHIGH VALLEY PA 180

191, 192 ...... PHILADELPHIA PA 191

193, 194 ...... SOUTHEASTERN PA 193

197–199 ...... WILMINGTON DE 197

202–205 ...... WASHINGTON DC 202

208, 209 ...... SUBURBAN MD 208

210, 211,

219.

BALTIMORE MD 210

240, 241 ...... ROANOKE VA 240

250–252 ...... CHARLESTON WV 250

280, 281,

297.

CHARLOTTE NC 280

SCHEME A74

293, 296 ...... GREENVILLE SC 296

300, 301 ...... NORTH METRO GA 300
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66659

Column A 3-

Digit ZIP

Code Prefix

Combinations

Column B Label to

303, 311,

399.

ATLANTA GA 303

310, 312 ...... MACON GA 310

318, 319 ...... COLUMBUS GA 318

334, 349 ...... W PALM BEACH FL 334

335, 346 ...... TAMPA FL 335

369, 393 ...... JACKSON MS 393 SCHEME

B

377–379 ...... KNOXVILLE TN 377

390, 391 ...... JACKSON MS 390 SCHEME

A

400, 401,

471.

LOUISVILLE KY 400

410, 470 ...... CINCINNATI OH 410

SCHEME A

430, 431,

433.

COLUMBUS OH 430

SCHEME A

434–436 ...... TOLEDO OH 434

437, 438 ...... COLUMBUS OH 437

SCHEME B

442, 443 ...... AKRON OH 442

444, 445 ...... YOUNGSTOWN OH 444

446, 447 ...... CANTON OH 446

450, 451 ...... CINCINNATI OH 450

SCHEME B

460–462 ...... INDIANAPOLIS IN 460

463, 464 ...... GARY IN 463

465, 466 ...... SOUTH BEND IN 465

467, 468 ...... FORT WAYNE IN 467

480, 483 ...... ROYAL OAK MI 480

484, 485 ...... FLINT MI 484

486, 487 ...... SAGINAW MI 486

488, 489 ...... LANSING MI 488

490, 491 ...... KALAMAZOO MI 490

498, 499 ...... IRON MOUNTAIN MI 498

500–502 ...... DES MOINES IA 500

SCHEME A

503, 509 ...... DES MOINES IA 503

SCHEME B

515, 516,

680.

OMAHA NE 680

522, 523 ...... CEDAR RAPIDS IA 522

527, 528,

612.

ROCK ISLAND IL 612

535, 538 ...... MADISON WI 535

540, 550 ...... ST PAUL MN 550

541, 542 ...... GREEN BAY WI 541

590–593,

595, 596,

821.

BILLINGS MT 590

600, 602 ...... PALATINE IL 600

601, 603 ...... CAROL STREAM IL 601

610, 611 ...... ROCKFORD IL 610

615, 616 ...... PEORIA IL 615

618, 619 ...... CHAMPAIGN IL 618

620, 622,

630, 633.

ST LOUIS MO 630

654, 655 ...... SPRINGFIELD MO 654

SCHEME A

656, 657 ...... SPRINGFIELD MO 656

SCHEME B

670, 671 ...... WICHITA KS 670

710, 711 ...... SHREVEPORT LA 710

SCHEME A

713, 714 ...... SHREVEPORT LA 713

SCHEME B

752, 753 ...... DALLAS TX 752

786, 789 ...... AUSTIN TX 786

808, 809 ...... COLORADO SPRINGS CO

808

840–844 ...... SALT LAKE UT 840

Column A 3-

Digit ZIP

Code Prefix

Combinations

Column B Label to

894, 895,

897.

RENO NV 894

873, 877,

878, 881,

883, 884.

ALBUQUERQUE NM 873

889–891 ...... LAS VEGAS NV 890

902–905 ...... INGLEWOOD CA 902

906–908 ...... LONG BEACH CA 907

913, 914 ...... VAN NUYS CA 913

917, 918 ...... INDUSTRY CA 917

919–921 ...... SAN DIEGO CA 920

923–925 ...... SAN BERNARDINO CA 923

926, 927 ...... SANTA ANA CA 926

940, 943,

944.

SAN FRANCISCO CA 940

SCHEME A

945, 948 ...... OAKLAND CA 945 SCHEME

A

946, 947 ...... OAKLAND CA 946 SCHEME

B

952, 953 ...... STOCKTON CA 952

956, 957 ...... SACRAMENTO CA 956

962–966 ...... SAN FRANCISCO CA 962

SCHEME B

967–969 ...... HONOLULU HI 967

L004 Area Distribution Centers (ADCs)

[Text of current L101 with no change

except revise footnote 2 as follows:]

* * * * * 2For Periodicals and Standard Mail (A)

mailings of barcoded flats.

* * * * *

[Delete current L201, L202, L203, L701,

L702, L703, L704, L706, and L707.]

L600 Standard Mail

L601 BMCs—Machinable Parcels

[Insert current L705 with no change in

text.]

L602 BMCs—DBMC Rates

[Insert current L708 with no change in

text.]

L800 Automation Rate Mailings

* * * * *

L804 AADCs—Letter-Size Mailings

[Text of current L804 with no change

except revise footnote 2 as follows:]

2For Periodicals and Standard Mail (A)

mailings.

L805 BMC/ASF Entry—Residual

Periodicals and Standard Mail (A)

[Insert current L805 with no change in

text.]

L806 Non-BMC/ASF Entry—Residual

Periodicals and Standard Mail (A)

[Insert current L806 with no change in

text.]

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpiece Preparation

[Redesignate current M011 as M012,

and add new M011 as follows:]

M011 General Preparation Standards

1.0 STANDARD PREPARATION

TERMS AND DEFINITIONS

1.1 Presort

Presort is the process by which a

mailer prepares mail so that it is sorted

to at least the finest extent required by

the standards for the rate claimed.

Generally, presort is performed

sequentially, from the lowest (finest)

level to the highest level, to those

destinations specified by standard and

is completed at each level before the

next level is prepared. Not all presort

levels are applicable in all situations.

1.2 Presort Levels

Terms used for presort levels are

defined as follows:

a. Firm: all pieces for delivery at the

address shown on the top piece.

b. Carrier route: all pieces for delivery

to the same city carrier route, rural

route, highway contract route, post

office box section, or general delivery

unit.

c. 5-digit: the delivery address on all

pieces includes the same 5-digit ZIP

Code.

d. 3-digit: the ZIP Code in the delivery

address on all pieces begins with the

same three digits (see L002 (Column A)

or L801 as applicable).

e. 3-digit/Scheme: the ZIP Code on

the delivery address on all pieces begins

with one of the 3-digit prefixes

processed by the USPS as a single

scheme (see L003) and that, subject to

standard, may be presorted together as

a single group.

f. Entry SCF 3-digit(s): regardless of

the volume of mail, a separation is

required for each 3-digit area in the SCF

service area of the entry facility.

g. SCF: the separation includes pieces

for two or more 3-digit areas served by

the same SCF (see L002 (Column B) or

L802 as applicable), except that, where

required or permitted by standard, mail

for only one 3-digit area may be

correctly prepared in an SCF separation

when no mail for other 3-digit ZIP Code

areas is available.

h. ADC/AADC/SDC: all pieces are

addressed for delivery in the service

area of the same ADC, or AADC (see

L004, L803, or L804 as applicable).

i. ASF/BMC: all pieces are addressed

for delivery in the service area of the

same ASF or BMC (see L601 or L602 as

applicable).
66660 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

j. Mixed (BMC, AADC, etc.): the

pieces are for more than one presort

destination.

k. Where the terms are used,

‘‘residual’’ pieces/packages/sacks means

material left over after completion of a

presort sequence. Residual mail lacks

the volume set by standard to require or

allow package or bundle preparation to

a particular destination, and usually

does not qualify for a presort rate as a

result. Residual mail is also referred to

as ‘‘nonqualifying’’ or ‘‘working’’ mail.

1.3 Preparation Instructions

For purposes of preparing mail:

a. ‘‘Pieces’’ refers to individually

addressed mailpieces. This definition

also applies when ‘‘pieces’’ is used in

eligibility standards. Quantities

indicated for optional or required

sortations always refer to pieces unless

specifically excepted.

b. A ‘‘full’’ letter tray is one in which

faced, upright pieces fill the tray to its

capacity whenever practical, but never

less than at least 3⁄4 of its length. Each

tray must be filled before filling of the

next tray is begun, with the contents in

multiple trays being relatively balanced.

A tray with less mail can be prepared

only if less-than-full or overflow trays

are allowed by the standards for the rate

claimed. Tray preparation is described

in M033.

c. An ‘‘overflow’’ letter tray is one that

is allowed by the standards for the rate

claimed to be less than full and contain

any quantity of pieces that could not be

placed in full trays for the same

destination.

d. A ‘‘full’’ flat tray is one that is

physically full. A specific minimum

volume is required (at least a single

stack of mail lying flat on the bottom of

the tray and filling the tray to the

bottom of the handholds) before a tray

is sufficiently filled to allow or require

preparation to the corresponding presort

destination. When standards require

preparation of ‘‘full’’ trays, less-than-full

trays that contain more than the

minimum volume for preparation must

be filled with additional available

pieces, up to the reasonable capacity of

the tray.

e. A ‘‘full’’ sack is defined in the

standards for the class and rate claimed.

f. An ‘‘entry [origin] 3-digit’’ tray

contains all mail (regardless of quantity)

for a 3-digit ZIP Code area within the

SCF service area of the facility at which

a mailing is entered. If more than one 3-

digit area is served, as indicated in

L002, a separate tray must be prepared

for each.

g. The ‘‘required at (quantity)’’

instruction means that the particular

unit must be prepared for the

corresponding presort level whenever

the specified quantity of mail is reached

or exceeded (e.g., required at 10 pieces).

Packages, bundles, and containers may

contain more than the minimum

quantity up to the applicable maximum

physical size. Subject to applicable rate

eligibility standards, smaller quantities

may be prepared only if permitted. In

some situations as specified by

standard, required preparation might

apply only if the mailer chooses to

qualify for the corresponding rate.

h. The ‘‘optional at (quantity)’’

instruction means that the particular

unit may be prepared for the

corresponding presort level whenever

the specified quantity of mail is reached

or exceeded. Packages, bundles, or

containers may contain more than the

minimum quantity up to the applicable

maximum physical size. Smaller

quantities may be prepared only if

permitted by applicable rate eligibility

standards. Standards for quantities with

which preparation is optional are often

followed standards for larger quantities

with which preparation is required.

i. ‘‘Entry (facility)’’ (or ‘‘origin

(facility)’’) refers to the USPS mail

processing facility (e.g., BMC) that

serves the post office at which the mail

is entered by the mailer. If the post

office where the mail is entered is not

the one serving the mailer’’s location

(e.g., for plant-verified drop shipment),

the post office of entry determines the

‘‘entry’’ facility. ‘‘Entry SCF’’ includes

both single- and multi-3-digit SCFs.

‘‘Entry BMC’’ includes subordinate

ASFs unless otherwise specified.

j. ‘‘Smaller quantities not permitted’’

or ‘‘fewer pieces not permitted’’

disallows preparation of quantities of

mail smaller than that stated as the

minimum required. However, as a

general exception, the last of more than

one package, bundle, sack, or tray for a

presort destination may have less than

the otherwise applicable minimum.

Other exceptions to minimum quantity

criteria might be provided by the

standards for the rate claimed.

k. A ‘‘package’’ is a group of

addressed pieces secured together as a

unit. The presort process considers the

total number of pieces available for the

particular presort destination and

assembles them into groups meeting

applicable volume and size standards.

When the standards applicable to the

rate claimed require securing the pieces

in each group together, the result is a

package. The term ‘‘package’’ does not

correctly apply to unsecured groups of

pieces, e.g., those prepared in trays and

identified by separator cards. ‘‘Package’’

labels and other ‘‘package’’

identification methods may be used for

unsecured groups of pieces as permitted

by standard. Package preparation is

described in M020.

l. A ‘‘bundle’’ is a group of packages

secured together as a unit under the

standards applicable to the rate claimed.

2.0 PRESORT ACCURACY

VALIDATION AND EVALUATION

(PAVE)

2.1 Basic Information

The Presort Accuracy, Validation, and

Evaluation (PAVE) program is a process

designed in cooperation with the

mailing industry to evaluate presort

software and determine its accuracy in

sorting address files according to DMM

standards. PAVE is available only to

software and hardware manufacturers

(i.e., companies that actually develop

presort software or manufacture

presorting equipment). PAVE

certification does not guarantee

acceptance of customer mail that was

prepared using PAVE-validated

hardware/software.

2.2 Process

PAVE evaluates the accuracy of

presort products by providing test

address files to vendors. Vendors

process the test file(s) through their

presort software or hardware and return

the resulting mailing statement

facsimile(s) and other presort

documentation to the USPS National

Customer Support Center (NCSC). The

NCSC evaluates the answers. Each test

file is evaluated for its accuracy of

presort, compliance with current DMM

standards, accuracy of sack/tray/pallet

tag labels, and general acceptability of

computer generated facsimiles of

mailing statements and other presort

documentation. If the answers are

accurate the vendor’’s presort product is

validated for a 12-month period or until

the end of the current annual period.

2.3 Participation

To obtain detailed information on

participation in PAVE, presort product

developers may request the PAVE

Program Technical Guide from the

NCSC by calling 1–800–331–5746,

extension 651 or 454. Participants may

use the PAVE order form, included in

that guide, to order PAVE test files.

M012 Endorsements and Markings

[In 1.1a, replace ‘‘First-, third-, and

fourth-class mail’’ with ‘‘First-Class or

Standard Mail’’; in 1.1b, replace

‘‘second-class’’ with ‘‘Periodicals’’;

revise other text as follows:]

* * * * *
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66661

2.0 METHOD

2.1 Required Marking

Unless otherwise directed or allowed

by standard, the required marking must

be printed or produced as part of, or

immediately below or to the left of, the

permit imprint, meter impression or

stamp, or precanceled or adhesive

stamp. Alternatively, the mailer may

place markings in the address area on

the line immediately above the address

or, preferably, two lines above the

address. If the marking is in the address

area, no other information may appear

on the line with the rate marking except

carrier route information. Markings may

also be included in the optional

endorsement line (under M013) or

carrier route information line (under

M014).

* * * * *

2.3 Precanceled Stamps

If precanceled stamps bearing the

words ‘‘Carrier Route Presort’’ are used,

additional markings must be provided

as required by the standards for the

particular rate claimed.

* * * * *

M013 Optional Endorsement Lines

[In 1.1, delete the entries for optional

SDC, state, and mixed states packages;

in 1.2 and 2.1, replace ‘‘[T]hird-[C]lass’’

with ‘‘Standard Mail (A)’’; in 2.6, delete

‘‘fourth-class’’; revise other text as

follows:]

1.0 USE

1.1 Basic Standards

Mailers may prepare mailings without

applying pressure-sensitive package

labels to the top piece of packages by

using a specific optional endorsement

line (OEL) above the address block or on

the address label on the top piece of a

package as shown below. Use of OELs

on bundles is subject to the standards

applicable to the rate claimed.

On FIRM PACKAGES use ............FIRM 12345

On CARRIER ROUTE PACKAGES

(Nonprofit Standard Mail, Regular and

Preferred Periodicals) use............CAR-RTSORT**C–001

On CARRIER ROUTE PACKAGES

(Enhanced Carrier Route Standard

Mail) use................................ECR**C–001

On CARRIER ROUTE PACKAGES

(Automation First-Class and

Automation Standard Mail) use

..................................AUTOCRRT**C–001

On 5–DIGIT PACKAGES use...5–DIGIT 12345

On OPTIONAL CITY PACKAGES use

.................................... MIXED CITY 12345

(Use lowest 5-digit ZIP Code assigned to that

city.)

On 3–DIGIT PACKAGES use.......3–DIGIT 771

On SCF PACKAGES use .....................SCF 750

(Use correct 3-digit SCF code as shown in

L002, Column B.)

On ADC PACKAGES use..........ALL FOR ADC

On MIXED ADC PACKAGES use.........MIXED

ADC

On AADC PACKAGES use....ALL FOR AADC

On MIXED AADC PACKAGES use ......MIXED

AADC

On RESIDUAL PACKAGES use .....WORKING

* * * * *

1.4 Rate Markings

At the mailer’s option, the markings

required by the standard for the class of

mail and rate claimed may be included

in the OEL if the OEL appears on each

piece in the mailing and if it remains a

single line with the basic information

(required by 1.1) at the right end (e.g.,

on a carrier route package of Enhanced

Carrier Route Saturation Standard Mail:

* * * * ECRWSS**C–001; on a

Nonprofit Standard Mail SCF package: *

* * * NONPROFIT**SCF 750).

2.0 FORMAT

* * * * *

2.6 ZIP Code

Except for carrier route packages,

ADC, AADC, mixed ADC, and mixed

AADC packages and AADC and (as

applicable) working residual packages,

the optional endorsement line must

include the appropriate ZIP Code

information. Mixed ADC bundles of

bound printed matter must have facing

slips as specified in M630.

M014 Carrier Route Information Lines

1.0 BASIC INFORMATION

Packages made up to individual

carrier routes, rural routes, highway

contract routes, post office box sections,

or general delivery units may be

prepared without facing slips if

prepared with optional endorsement

lines under M013 or with carrier route

information lines under 2.0. These

standards apply to Automation FirstClass, carrier route and Level I/K

Periodicals, Automation and Enhanced

Carrier Route Standard Mail, and carrier

route bound printed matter mailings.

Carrier route information lines may be

on all pieces in a carrier route mailing

regardless of their presort level.

2.0 FORMAT AND CONTENT

2.1 Route Information

Carrier route information consisting of

a descriptive prefix (or its abbreviation),

plus a route number or numeric code,

must be on the top line of the address,

either alone or with other information

(e.g., addressee, account data).

Alternatively, the carrier route

information may appear with the

applicable carrier route endorsement on

the line above or two lines above the

address if the carrier route rate marking

is in the address area when permitted by

standard (see Exhibit 2.1).

**CARRIER ROUTE 011

RESIDENT

1300 WATERFORD DR

DISTRICT HEIGHTS MD 20747

**C 011

RESIDENT

1300 WATERFORD DR

ENDICOTT NY 13760

**RURAL ROUTE 005

RESIDENT

1602 COUNTRY LN

BURKE VA 22015

*R 15005

POSTAL CUSTOMER

**C 127

CAR-RT SORT

RESIDENT

2711 ORDWAY ST NW

WASHINGTON DC 20008

**C 011

AUTOCRRT

RESIDENT

1300 WATERFORD DR

DISTRICT HEIGHTS MD 20747

2.2 Descriptive Prefix

The descriptive prefix ‘‘carrier route,’’

‘‘rural route,’’ ‘‘highway contract route,’’

‘‘post office box section,’’ or ‘‘general

delivery unit’’ must be spelled out or

abbreviated as shown below:

Carrier Route...................................................C

General Delivery Unit ....................................G

Highway Contract Route................................H

Post Office Box Section..................................B

Rural Route .....................................................R

2.3 Route Code

These conditions apply to route

codes:

a. The one-character descriptive

prefix in 2.2 must be followed by a 3-

digit route or post office box section

number.

b. On Periodicals and Standard Mail

pieces bearing a simplified address that

does not include a ZIP Code, the

descriptive prefix in 2.2 must be

followed by a route code that begins

with the last two digits of the 5-digit ZIP

Code and is followed by the route code

in 2.3a.

c. The descriptive prefix and route

code required for simplified address

mailings in 2.3b may also be used on

mailings of any class that contain a ZIP

Code in the address.
66662 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

2.4 Other Contents

Other elements of the carrier route

information line include:

a. The carrier route information must

be preceded by at least two asterisks

(**) or other distinctive nonalphabetic

or nonnumeric characters.

b. At least 10 spaces must be allowed

for carrier route information if included

with other information on the top line.

c. Carrier route information lines may

also contain the markings required by

standard for the class of mail and rate

claimed if all the information remains

on a single line with the basic

information (required by 2.1) at the right

end (e.g., on a carrier route package of

Enhanced Carrier Route Saturation rate

mail):

* * * * * * * ECRWSS**C–001

POSTAL CUSTOMER

M020 Packages and Bundles

1.0 BASIC STANDARDS

[Relocate current 1.1, 1.4, 1.5, and 1.7 to

M011; renumber current 1.2, 1.3, and

1.6 as 1.1, 1.2, and 1.3, respectively;

revise renumbered 1.3, and add new 1.4

as follows:]

* * * * *

1.3 Labeling

Unless excepted by standard,

packages must be labeled using the

pressure-sensitive package labels

specified in the standards for the class

and rate being prepared. On letter- and

card-size mail, the label must be placed

in the lower left corner of the top piece

in the package. On flat-size mail, the

label must be placed on the address side

of the top piece in the package. Optional

endorsement lines may be used in lieu

of pressure-sensitive labels, subject to

M013.

1.4 Palletization

Packages and bundles placed on

pallets must be able to withstand

normal transit and handling without

breakage or injury to USPS employees.

Heavy-gauge shrinkwrap over plastic

banding, only shrinkwrap, or only

banding material is acceptable if the

package or bundle can stay together

during normal processing. Packages and

bundles placed on BMC and mixed

BMC pallets must be shrinkwrapped

and machinable on BMC parcel sorters;

machinability is determined by the

USPS. If used, banding material must be

applied at least once around the length

and once around the girth; wire and

metal strapping are prohibited.

1.5 Exception

Fewer than the minimum number of

pieces required by the standards for the

rate claimed may be prepared as an

individual package without loss of rate

eligibility in that regard under either of

these conditions:

a. A greater number of pieces would

exceed the maximum physical size for

a package and the total number of

pieces for that presort destination meets

the minimum volume standard (e.g., 30

pieces are available to meet a 10-piece

minimum, but a package of 8 pieces is

6 inches thick).

b. The pieces constitute the ‘‘last

package’’ for a presort destination and

previously prepared packages met the

applicable minimum volume standard

(e.g., 505 pieces prepared in ten 50-

piece packages and one 5-piece

package).

2.0 ADDITIONAL STANDARDS—

PREFERRED PERIODICALS AND

NONPROFIT STANDARD MAIL (A)

2.1 Nonautomation Rate Mailings

Nonautomation rate mailings are

subject to these additional standards:

a. The maximum thickness for

packages of other than walk-sequence

rate letter-size mail is 6 inches. The

maximum thickness for packages of

letter-size walk-sequence rate mail is 4

inches.

b. Packages of letter-size mail up to 1

inch thick must be secured with

appropriate banding applied around the

girth. Thicker packages must be secured

with at least two bands, the first placed

around the length and the second

around the girth so that the second band

crosses over the first.

c. When preparing mail bearing a

simplified address, all pieces for the

same post office must be tied in

packages of 50 whenever possible. If

packages of other quantities are

produced, the actual number of pieces

must be shown on the facing slip that

must be attached to show distribution

desired (e.g., rural route, city route, post

office boxholder).

2.2 Automation Rate Mailings

Automation rate mailings are subject

to these additional standards:

a. The maximum thickness for

packages of letter-size mail is 6 inches.

b. Packages must be prepared for

mailings consisting entirely of card-size

pieces, and for mail placed in AADC

trays (except for residual AADC trays)

and in mixed AADC trays (packagebased mailings) or overflow trays (traybased mailings).

c. Packages must not be prepared in

full trays in tray-based mailings of larger

than card-size pieces except in residual

AADC and mixed AADC trays and as

permitted by standard for oversize

pieces.

d. Packages must be secured with

rubber bands, elastic strapping, flat

plastic strapping, or string placed once

around the girth (narrow dimension) on

packages up to 1 inch thick. Thicker

packages must be tied twice, with the

first rubber band or elastic strap placed

around the length and the second

around the girth, crossing over the first.

Additional ties may be used if none lies

along the outer 1 inch of any package

edge.

e. Elastic strapping must have a

minimum strength of 15 pounds and a

minimum of 150% elongation prior to

break. Minimum tension, when applied

to bundle, must be 50% breaking

strength. Elastic strapping may not be

used unless approved by USPS

Engineering. A mailer wanting to have

elastic strapping material tested for

acceptability must provide 25 packages

(five each: 6 inches, 4 inches, 2 inches,

1 inch, and 10 pieces) strapped with the

tested material. The mailer must send

the material with a letter of request at

least 6 weeks before the planned date of

mailing to USPS Engineering. The

mailer is notified in writing by the

USPS. If the USPS approves the

material, that letter (showing a unique

number) serves as evidence that the

material meets USPS standards. A copy

of the letter must be attached to each

mailing statement provided for mailings

that use the tested strapping material.

The mailer must be able to show when

requested that the strapping material on

a mailing is the same as that tested.

f. Separator cards:

(1) May be used instead of packaging

(except for card-size pieces) to identify

groups of pieces in 3-digit and SCF trays

in package-based mailings.

(2) May be prepared from any paper

or card stock.

(3) Must be at least 1⁄4 inch higher

than the highest piece in the mailing.

(4) Must be placed in front of the

corresponding groups of mail.

g. Except in package-based mailings

under M895, if groups of presorted

pieces are identified by separator cards,

the required pressure-sensitive package

label must be placed on the separator

card or in the lower left-hand corner of

the first piece behind it. Alternatively,

the words ‘‘5-Digit’’ or ‘‘3-Digit,’’ as

appropriate for the group, may appear

on the separator card. The pressuresensitive label or the descriptive words

(if placed on the separator card) must be

at the top of each in a position that can

be easily read when the card is in a tray.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66663

h. In three-tier package-based

Barcoded rate mailings under M895,

pieces in AADC overflow trays must be

secured into 5-digit packages in the 5-

digit presort tier, and 3-digit packages in

the 3-digit presort tier. These packages

require no labeling.

i. In tray-based mailings, pieces in 5-

digit overflow trays must be secured

into and labeled as 5-digit packages.

Pieces in 3-digit overflow trays and SCF

overflow trays must be secured into and

labeled as 3-digit packages.

3.0 ADDITIONAL STANDARDS—

FIRST-CLASS MAIL AND OTHER

PERIODICALS AND STANDARD MAIL

(A)

3.1 Cards and Letter-Size Pieces

Cards and letter-size pieces are

subject to these specific packaging

standards:

a. The maximum thickness for

packages of walk-sequence rate mail is

4 inches. The maximum thickness for

other packages is 6 inches.

b. Card-size pieces must always be

prepared in packages.

c. Packages must be prepared in all

less-than-full trays, and for

nonupgradable Retail First-Class and

Regular Standard Mail, and for

nonautomation-compatible Publications

Service and other than Barcoded rate

Regular Periodicals.

d. Separator cards may be used

instead of packaging for carrier route

groups in full Enhanced Carrier Route 5-

digit carrier routes trays. Separator cards

must be used instead of packaging for

carrier route groups in full trays of

Automation Carrier Route First-Class

and Standard Mail, and in full trays of

Barcoded rate Regular Periodicals.

Separator cards must be prepared from

paper or card stock, must be at least 1⁄4

inch higher than the highest piece in the

mailing, and must be placed in front of

the corresponding groups of mail.

e. For card-size pieces and mail in

less-than-full trays, packages of lettersize pieces of Automation First-Class

and Automation Standard Mail,

automation-compatible Publications

Service and Barcoded rate Regular

Periodicals, and upgradable Retail FirstClass and Regular Standard Mail must

be secured with rubber bands. Other

packages of letter-size pieces must be

secured with rubber bands, elastic

strapping, flat plastic strapping, or

string. (Elastic strapping must have a

minimum strength of 15 pounds and a

minimum of 150% elongation prior to

breaking. Minimum tension, when

applied to bundle, must be 50%

breaking strength. Elastic strapping may

not be used unless approved by USPS

Engineering. If requested, the mailer

must be able to show such approval for

the strapping material used for a

mailing.)

3.2 Flat-Size Pieces

Flat-size pieces are subject to these

specific packaging standards:

a. Though not subject to a specific

thickness limit, packages of flats must

be secure and stable, and are subject to

specific weight limits if palletized.

b. Flat-size pieces must always be

prepared in packages unless excepted

by standard.

3.3 All Pieces

All pieces are subject to these

standards:

a. For mail prepared using a

simplified address, all pieces for the

same post office must be tied in

packages of 50 when possible. If

packages of other quantities are

produced, the actual number of pieces

must be shown on the facing slip that

must be attached to show distribution

desired (e.g., rural route, city route, post

office boxholder).

b. One package containing fewer than

the otherwise applicable minimum

number of pieces may be prepared when

it represents the last package for a

presort destination to which other

packages (each containing at least the

minimum volume required) were

previously prepared in the same

mailing.

c. Packages up to 1 inch thick must be

secured with appropriate banding

placed once around the girth (narrow

dimension). Thicker packages must be

secured with at least two bands, the first

placed around the length and the

second around the girth so that the

second band crosses over the first.

Additional ties may be used if none lies

along the outer 1 inch of any package

edge.

* * * * *

[Delete current 5.0 and 6.0.]

M030 Container Preparation

M031 Labels

[In 1.7 and 4.13, replace ‘‘second-class’’

in the heading and text with

‘‘Periodicals’’ and replace ‘‘2C’’ with

‘‘PERIOD’’; in 2.1a, replace ‘‘First-,

third-, and fourth-class’’ with ‘‘FirstClass and Standard Mail’’ and replace

‘‘second-class’’ with ‘‘Periodicals’’; in

3.2a, replace ‘‘First- and third-class’’

with ‘‘First-Class and Standard Mail’’

and replace ‘‘second-class’’ with

‘‘Periodicals’’; in 4.2, replace ‘‘secondclass’’ with ‘‘Periodicals’’ and replace

‘‘third- or fourth-class’’ with ‘‘Standard

Mail’’; in 4.8, insert ‘‘(Preferred

Periodicals only)’’ after ‘‘optional city,’’

replace ‘‘second-class’’ with

‘‘Periodicals,’’ and replace ‘‘third-class’’

with ‘‘Standard Mail’’; in 4.14, replace

‘‘second-class’’ with ‘‘Periodicals’’; in

5.0, replace ‘‘First- and third-class’’ with

‘‘First-Class and Standard Mail (A),’’

replace ‘‘second- or third-class’’ with

‘‘Periodicals or Standard Mail (A),’’

replace ‘‘First-, second-, and third-class’’

with ‘‘First-Class, Periodicals, and

Standard Mail (A),’’ replace ‘‘thirdclass’’ with ‘‘Standard Mail (A),’’ and

replace ‘‘[T]hird- and fourth-class’’ with

‘‘Standard Mail’’; no other change in

text.]

M032 Barcoded Container Labels

1.0 BARCODED TRAY LABELS

1.1 Standards

Barcoded tray labels are required for

Automation First-Class, automationcompatible Publications Service

Periodicals, and Automation Standard

Mail mailings of letter-size pieces, and

Automation First-Class mailings of flatsize pieces. Barcoded trays labels may

be used on any other mailing. Mailerproduced barcoded tray labels must

meet the standards below.

* * * * *

[In 1.2, replace ‘‘First- and third-class

mail’’ with ‘‘First-Class and Standard

Mail (A)’’ and replace ‘‘second-class’’

with ‘‘Periodicals.’’]

* * * * *

Exhibit 1.3c, Contents Identifier Codes

[Replace ‘‘2C’’ with ‘‘PERIOD’’; replace

‘‘3C’’ with ‘‘STD A’’; and replace ‘‘4C’’

with ‘‘STD B.’’]

* * * * *

2.0 BARCODED SACK LABELS

[Replace current 2.1 and 2.2 with new

2.1, below, and renumber current 2.3

through 2.5 as 2.2 through 2.4,

respectively; in renumbered 2.2, replace

‘‘First-, third-, and fourth-class mail’’

with ‘‘First-Class and Standard Mail’’

and replace ‘‘second-class’’ with

‘‘Periodicals’’; in renumbered 2.4e,

change the reference from 2.5d to 2.4d;

in renumbered 2.4f, replace ‘‘200 (2C)’’

with ‘‘200 (PERIOD).’’]

2.1 Standards

Barcoded sack labels are required for

Barcoded rate Regular and automationcompatible Publications Service

Periodicals and Automation Standard

Mail flat-size pieces prepared in sacks.

Barcoded sack labels may be used for

other Periodicals and Standard Mail

prepared in sacks. Mailer-produced
66664 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

barcoded tray labels must meet the

standards below.

* * * * *

M033 Sacks and Trays

1.0 BASIC STANDARDS

1.1 Total Weight

The total weight of any tray or sack

(mail plus tray or sack tare) must not

exceed 70 pounds.

1.2 Equipment

Palletization of trays or sacks, or of

packages of flats outside of sacks, is

subject to M040. Preparation of

bedloaded bundles of flats is subject to

the standards for the class and rate

claimed. Other mailings must be

prepared in the container appropriate

for the processing category and rate of

the mail:

a. First-Class, Regular and

Publications Service Periodicals, and

Regular, Enhanced Carrier Route, and

Automation Standard Mail (A) lettersize pieces (including cards) must be

prepared in USPS letter trays with

sleeves. Subject to equipment

availability, 1- or 2-foot regular (MM) or

2-foot extended (EMM) letter trays must

be used as appropriate for the size and

volume of pieces. Letter trays may be

used for other letter-size mail, subject to

the applicable preparation standards.

b. First-Class flat-size pieces must be

prepared in USPS flat trays with covers.

c. First-Class parcels weighing less

than 11 ounces must be prepared in

green USPS sacks.

d. Priority Mail must be prepared in

orange USPS sacks.

e. Periodicals flat-size pieces,

machinable and irregular parcels, and

letter-size pieces not placed in trays at

the mailer’s option must be prepared in

brown USPS sacks.

f. Standard Mail flat-size pieces,

machinable and irregular parcels, and

Nonprofit Standard Mail letter-size

pieces not placed in trays at the mailer’s

option must be prepared in white

canvas USPS sacks.

1.3 Tray Sizes

Standard tray sizes to be used in

applying mail preparation standards are:

a. Letter trays: Inside bottom length:

(1) 2-foot MM and EMM trays: 21

inches.

(2) 1-foot trays: 101⁄2 inches.

b. Flat trays:

(1) Inside bottom dimensions: 143⁄4

inches long by 103⁄4 inches wide.

(2) Height: 8 inches to bottom of

handhold, 111⁄4 to top of tray.

1.4 Presort

Presort, presort levels, and standard

preparation terms are defined in M011,

except for Preferred Periodicals and

Nonprofit Standard Mail (A), which are

covered in 3.0 and 4.0.

1.5 Sleeving and Strapping

Except under 1.6, each letter tray

must be sleeved, and each flat tray must

be covered by a lid, using USPSprovided sleeves or lids. All bedloaded

letter trays must also be secured by a

plastic strap placed tightly around the

length of the tray without crushing the

tray or sleeve. Flat trays must be secured

by two straps placed tightly around the

width of the tray (i.e., the shorter

dimension).

1.6 Exception

Trays do not require sleeves/lids or

strapping if their contents are emptied

and processed in the facility where

deposited and that facility’s manager

has given the mailer a written waiver of

one or both requirements. Strapping is

not required on trays placed on 5-digit,

3-digit, and SCF pallets.

[Renumber current 2.0 and 3.0 as 3.0

and 4.0, respectively, and revise as

shown below. Insert new 2.0 as follows:]

2.0 FIRST-CLASS, REGULAR AND

PUBLICATIONS SERVICE

PERIODICALS, AND REGULAR,

ENHANCED CARRIER ROUTE, AND

AUTOMATION STANDARD MAIL

2.1 Letter Tray Preparation

Pieces must be prepared to result in

the fewest practical number of packages

(where required) and trays to contain

the mail presorted to a destination.

Letter tray preparation uses terms

defined in M011 and is subject to these

further standards:

a. Pieces must be ‘‘faced’’ with all

addresses in the same direction and

placed in trays to maintain their

orientation.

b. Each tray must be filled before

filling of the next tray is begun, with the

contents in multiple trays being

relatively balanced. A tray with less

mail can be prepared only if allowed by

the standards for the rate claimed,

subject to 2.1c. Subject to equipment

availability, 2-foot trays must be used

whenever available with 1-foot trays

used for lesser volume or as overflow

trays under 2.1c.

c. Subject to the standards for the rate

claimed, pieces left over after filling one

or more trays for a presort destination

are packaged and placed in a less-thanfull ‘‘overflow’’ tray. Where permitted,

preparation of overflow trays is required

for required presort levels and optional

for optional levels. Only one overflow

tray per destination may be prepared in

the same mailing. As a general

exception, an overflow tray may be

prepared where otherwise not allowed if

the minimum number of pieces required

by rate eligibility standards for the

corresponding presort level is available

but exceeds the capacity of a 2-foot tray

(e.g., 150 pieces to a 5-digit destination

are available to qualify for a 5-digit rate).

d. Subject to availability, standard

MM trays are used for all letter-size

mail, except that extended MM (EMM)

trays must be used when available for

letter-size mail more than 41⁄2 inches

high or 101⁄2 inches long. When EMM

trays are not available, pieces higher or

wider than MM trays must be angled

back and/or placed upright

perpendicular to the length of the tray

in row(s), as necessary, in a manner that

preserves their orientation.

e. Each tray must bear the correct tray

label.

f. Each tray must be sleeved and

strapped under 1.4 and 1.5.

2.2 Flat Tray Preparation (First-Class

Mail Only)

All flat tray preparation is subject to

these standards:

a. Pieces must be ‘‘faced’’ with all

addresses in the same direction and

placed in trays to maintain their

orientation.

b. Once the required minimum

volume is reached, additional pieces

must be placed in the same tray up to

its capacity to minimize the number of

trays used. When possible, pieces must

be placed in two stacks to optimize tray

use, but mail must not overfill the tray

to inhibit adequate closure or covering

of the contents. The total weight of a

tray and its contents must not exceed 70

pounds.

c. Each tray must bear the correct tray

label.

d. Each tray must be sleeved and

strapped under 1.4 and 1.5.

2.3 Sack Preparation

All sack preparation is subject to

these standards:

a. Each sack must bear the correct

sack label.

b. The weight of a sack and its

contents must not exceed 70 pounds.

3.0 NONAUTOMATION PREFERRED

PERIODICALS AND NONPROFIT

STANDARD MAIL

[Text of current 2.0.]

4.0 AUTOMATION RATE

PREFERRED PERIODICALS AND

NONPROFIT STANDARD MAIL

[Text of current 3.0.]

M040 Palletization

[M040 as shown below is revised based

on a recently concluded separate
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66665

rulemaking, and reorganized to

consolidate and replace current M042,

M043, M044, and M048 into new

M045.]

M041 General Pallet Standards

1.0 PHYSICAL CHARACTERISTICS

1.1 Standards

All pallets presented to the USPS,

whether USPS- or mailer-provided,

must meet the standards in 1.2 through

1.4. Mail on such pallets must meet the

standards applicable to the class and

rate claimed.

1.2 Construction

Pallets must be made of high-quality

material that can hold loads equal to a

gross weight of 2,200 pounds. Pallets

must measure 48 by 40 inches and must

allow for four-way entry by fork trucks

and two-way entry by pallet jacks.

1.3 Securing

Except for pallet boxes under 4.3,

loaded pallets of mail must be secured

either with at least two straps or bands

or wrapped with stretchable or

shrinkable plastic strong enough to

retain the integrity of the pallets during

transportation and handling.

1.4 Nonconforming Mailers

The USPS informs mailers or their

agents who present palletized mailings,

including plant-verified drop shipment

(PVDS), when their pallets fail to meet

basic pallet integrity and safety

standards. After July 1, 1996, once

notified and allowed to make changes to

improve load integrity, if a mailer’s

methods, or those of the mailer’s agent

presenting PVDS mailings, do not work,

the mailer is considered nonconforming.

A nonconforming mailer is required to

meet the specifications for

nonconforming mailers for top-cap use,

stacking of pallets, pallet box

construction, and maximum height/tiers

of trays in 2.0 through 4.0. After July 1,

1996, mailers will be suspended from

the pallet program if their pallets

continue to fail to meet the minimum

load integrity levels.

2.0 TOP CAPS

2.1 Use

Top caps are used as follows:

a. Except under 2.1b and 2.1c, all

pallets of sacks, letter mail trays,

parcels, packages or bundles of mail, or

pallet boxes must be top-capped if the

pallets are double- or triple-stacked

when presented to the USPS for

acceptance.

b. The top pallet need not be topcapped if the strapping or banding

securing the stacked pallets together

neither damages the mail on the top

pallet nor allows the stack to shift.

c. Lower pallet(s) containing either

parcels or packages or bundles of mail,

need not be top-capped if the top

surface of each pallet load provides a

sturdy, flat surface, parallel to the pallet

base, that allows for safe and efficient

stacking of pallets placed on top,

preventing sliding of the top pallet(s),

damage to pieces, and crushing of the

load.

2.2 Construction

Any material may be used as a top cap

if it provides a flat, level surface

horizontal to the base pallet, protects

the integrity of the mail below it while

supporting a loaded pallet above it, and

allows easy entry of a forklift to remove

the upper pallet(s). Flimsy paper or

fiberboard (e.g., the ends of paper rolls)

or similar material is inadequate and

may not be used as a top cap.

2.3 Securing

A top cap must be secured to the

pallet horizontal to the plane of the base

pallet, either by stretchwrap or by at

least two crossed straps or bands, so that

the cap stays in place to protect the mail

and maintain the integrity of the pallet

load.

2.4 Required Use by Nonconforming

Mailers

Nonconforming mailers (see 1.4) must

use top caps on all pallets of sacks,

letter mail trays, parcels, or packages or

bundles of mail, regardless of weight, or

on pallets containing pallet boxes 60

inches or less in height. Top caps must

be approximately 48 by 40 inches and

meet one of these construction

standards:

a. Five-wood boards, with uniform

edges and nine-leg pallet contact for

stacking.

b. Fiberboard box end style, with a

minimum 3-inch side and wall material

of at least double-wall corrugated

fiberboard C and/or B flute.

c. Fiberboard honeycomb covered on

both sides with heavy linerboard at least

1⁄2 inch thick.

d. Corrugated fiberboard C flute sheet

covering the entire top of the load with

standard pallet solid fiberboard corner

edge protectors.

3.0 STACKING PALLETS

3.1 Double- or Triple-Stacking

Pallets may be double- or triplestacked if:

a. The combined gross weight of the

stacked pallets (pallets, caps, and mail)

does not exceed 2,200 pounds.

b. The heaviest pallet is on the bottom

and the lightest on top.

c. The pallets are secured together

with at least two straps or bands of

appropriate material to maintain their

integrity during transportation and

handling (pallets must not be secured

together with stretchable or shrinkable

plastic).

d. Each pallet is top-capped under

2.0.

e. The combined height of the stacked

pallets and their loads does not exceed

84 inches.

3.2 Nonconforming Mailers

Nonconforming mailers (see 1.4) who

stack pallets are subject to the

conditions in 3.1, except that triplestacking is allowed only for pallets of

parcels and the combined height of any

stacked pallets may not exceed 77

inches.

4.0 PALLET BOXES

4.1 Use

Mailers may use pallet boxes

constructed of single-, double-, or triplewall corrugated fiberboard placed on

pallets to hold sacks or parcels prepared

under M045. Single-wall corrugated

fiberboard may be used only for light

loads (such as light-weight parcels) that

do not require transportation by the

USPS beyond the entry office. The

boxes must protect the mail and

maintain the integrity of the pallet loads

throughout transportation, handling,

and processing. The base of the boxes

must measure approximately 40 by 48

inches.

4.2 Maximum Height

The combined height of the pallet,

pallet box, and mail may not exceed 77

inches, except that until July 1, 1996,

the combined height may not exceed 84

inches. The contents of the box may not

extend above the top rim of the box.

4.3 Securing

Pallet boxes must be secured to

pallets with strapping, banding,

stretchable plastic, shrinkwrap, or other

material that ensures that the pallet can

be safely unloaded from vehicles,

transported, and processed as a single

unit to the point where the contents are

distributed with the load intact if:

a. The pallet and its contents are

transported by the USPS from the office

where the mail is accepted to another

postal facility where the contents will

be distributed.

b. The weight of the mail in the box

is not sufficient to hold the box in place

on the pallet during transportation and

processing, a pallet box must be secured

to the pallet base.
66666 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

4.4 Nonconforming Mailers

Nonconforming mailers (see 1.4) may

use pallet boxes only if constructed of

triple-wall corrugated fiberboard (C and/

or B flute material) with a maximum

height of 77 inches.

5.0 PREPARATION

5.1 Presort

Pallet preparation and pallet sortation

are subject to the specific standards in

M045. Pallet sortation is intended to

presort the palletized portion of a

mailing to at least the finest extent

required for the corresponding class of

mail and method of preparation.

Generally, pallet sortation is sequential

from the lowest (finest) level to the

highest, and must be completed at each

required level before the next optional

or required level is prepared. As

applicable, presort levels and standard

preparation terms for pallets are defined

in M011 and M045. Mailers must

prepare all required levels of pallets

before any working pallet is prepared

for a mailing or job.

5.2 Required Preparation

Pallets are prepared as follows:

a. A pallet must be prepared to a

required level of sortation when there

are 500 pounds of Periodicals or

Standard Mail packages, sacks, or

parcels or six layers of Periodicals or

Standard Mail (A) letter trays.

b. Up to 10 percent of the total pallets

in any mailing or job may be working

pallets labeled to the BMC (Standard

Mail) or ADC (Periodicals) serving the

post office where mailings are accepted

into the mailstream. The processing and

distribution manager of that facility may

issue a written authorization to the

mailer to label working pallets to the

post office or processing and

distribution center serving the post

office where mailings are entered.

Working pallets contain all mail

remaining after required and optional

pallets are prepared.

5.3 Minimum Load

In a single mailing, the minimum load

per pallet is 250 pounds of Periodicals

or Standard Mail packages, parcels, and

sacks (or three tiers/layers of letter trays

of Periodicals or Standard Mail (A)),

except that the processing and

distribution manager of the facility

where a mailing is entered may issue a

written authorization to the mailer

allowing preparation of 5- or 3-digit

pallets containing less volume if the

mail on those pallets is for that facility’s

service area.

5.4 Maximum Load

The maximum weight (mail and

pallet) is 2,200 pounds. The maximum

height of a single pallet (mail and pallet)

is 77 inches for packages, bundles,

parcels, sacks, or pallet boxes or 12

layers of letter trays.

5.5 Mail on Pallets

Pieces in trays, packages, bundles,

and sacks must be prepared under the

standards applicable to the class of mail

and rate claimed. When two or more

Periodicals or Standard Mail (A)

mailings are placed together on pallets,

the mailer must maintain records for

each mailing as required by standard.

Automation rate and upgradable lettersize pieces may not be placed on the

same 5-digit pallet as pieces at other

rates. Trays always may be placed on

pallets ‘‘right-side-up’’ with heavier,

more filled trays at the bottom of the

load.

5.6 Sacked Mail

Mail that is not palletized must be

prepared under the standards applicable

to the rate claimed. For Periodicals,

mailers must separately sack packages

of each publication that are not

palletized under M045 or that are

excluded from palletization. Trays that

are not palletized must be bedloaded.

Sacks (including sacks of packages not

placed on pallets) containing packages

remaining after all pallets are prepared

may be presented with the palletized

mail (and reported on the same mailing

statement) if separated from the

palletized portion of the mailing.

5.7 Nonconforming Mailers

For nonconforming mailers (see 1.4)

of letter-size mail in trays, the combined

height of a pallet and its load must not

exceed six layers of MM or EMM letter

trays.

6.0 COPALLETIZED, COMBINED, OR

MIXED-RATE LEVEL MAILINGS

6.1 General

Palletized mailings, including

combined, copalletized, and mixed rate

level mailings, must be prepared

according to the standards applicable to

the class of mail, subject to specific

authorization by the RCSC serving the

mailing post office when required.

6.2 Application

The mailer (or publisher or agent)

must submit a written request to the

RCSC serving the mailing post office to

present the types of pallets described in

6.1. A separate request is required for

each type of pallet at each location, but

multiple, concurrent applications are

acceptable. A mailer who cannot meet

the minimum palletization standards

without copalletizing, combining, or

commingling mixed rate mailings might

still qualify if the total copalletized,

combined, or commingled mailing

meets minimum pallet standards. The

request must be received at least 30 days

before the first mailing and include the

names, addresses, and telephone

numbers of the owner of the mail and

of the firm or person preparing the mail;

a description of the mailing (e.g., size,

weight, class, rate, volume, mailing

frequency, and postage payment

method); the type of authorization

requested; and a sample of the

applicable documentation required in

M045.

6.3 Periodicals Publications

To combine more than one

Periodicals publication on pallets, the

mailer must merge and presort copies of

all the publications into common

packages to achieve the finest level of

presort for the mailing. To copalletize

different Periodicals flat-size

publications, the mailer must

consolidate on pallets all independently

presorted packages for each publication

to achieve the finest level of presort for

the mailing. Both combining and

copalletizing publications must be

supported by the documentation

required in M045. Preferred Periodicals

may not be combined with Regular or

Publications Service Periodicals.

6.4 Standard Mail (A)

To combine mixed rate level

Nonprofit Standard Mail (A) on pallets

(i.e., 3/5 and Carrier Route), the mailer

must be an authorized plant load mailer

or an authorized plant-verified drop

shipment (PVDS) mailer with on-site

postal verification; must attach to the

written request to the RCSC either a

copy of an approved Form 3815

showing the mailer’s authority to plant

load or the USPS authorization for

PVDS with on-site verification, as

applicable; and must consolidate on

pallets all independently prepared

packages to achieve the finest level of

presort for the mailing. To copalletize

different Standard Mail (A) flat-size

mailings, the mailer must consolidate

on pallets all independently presorted

packages from each mailing to achieve

the finest level of presort for the

mailing, and must present computergenerated listings at the time of mailing

that include a summary list

consolidating the copalletized multiple

mailings and a list of the contents of

each pallet by ZIP Code and presort

level.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66667

6.5 Cancellation

An authorization may be canceled by

the USPS if the mailer does not meet the

standards for pallets or the rates claimed

or the mailer does not submit

information on future mailings as

requested by the RCSC. Mailers may

appeal canceled authorizations under

G020.

M045 Preparing Mail on Pallets

1.0 BASIC USES

Mailers may prepare these types of

mail on pallets:

a. Letter-size mail in trays.

b. Packages or bundles not prepared

in sacks.

c. Packages or parcels in sacks.

d. Machinable or irregular parcels.

e. Copalletized multiple flat-size

mailings (subject to M041).

f. Combined mailings of machinable

parcels (Standard Mail (A) and (B))

under M073.

g. Two or more Periodicals

publications combined or copalletized

(subject to M041).

h. Combined mailings of Nonprofit

Standard Mail mixed rate levels (subject

to M041).

i. Commingled zone-rated Standard

Mail (subject to M630).

2.0 PACKAGES

2.1 Standards

Package presort and labeling must

meet the applicable general standards in

M010 through M030, except as noted

below. The palletized portion of a

mailing may not include packages

sorted to foreign destinations.

2.2 Size—Periodicals

Package size: Six-piece minimum, 20-

pound maximum, except that:

a. Firm packages may contain as few

as two copies of a publication and do

not have to be consolidated into bundles

with other packages to the same 5-digit

destination. A firm ‘‘package’’ may be

one piece for presort (see M210 and

M290).

b. All pieces for the same presort

destination must be in one package if

they weigh less than 10 pounds. Ten

pounds or more of mail for a destination

must be prepared in packages that

weigh from 10 to 20 pounds each.

c. The last package to a presort

destination may contain less than 10

pounds of mail.

d. All palletized packages of

copalletized publications must contain

at least six pieces.

2.3 Size—Standard Mail (A)

Package size: 10-piece minimum, 20-

pound maximum, except that:

a. All pieces for the same presort

destination must be in one package if

they weigh less than 10 pounds. Ten

pounds or more of mail for a destination

must be prepared in packages that

weigh from 10 to 20 pounds each.

b. The last package to a presort

destination may contain less than 10

pounds of mail.

2.4 Size—Standard Mail (B)

Package size: 10-pound or 1,000-

cubic-inch minimum (whichever occurs

first), 40-pound maximum, except that:

a. All pieces for a presort destination

must be in one package if they weigh

less than 10 pounds. Ten pounds or

more of mail for a destination must be

prepared in packages that weigh from 10

to 40 pounds each.

b. The last package to a presort

destination may contain less than 10

pounds of mail.

c. Packages must be prepared to

carrier route sortations if the carrier

route bulk bound printed matter rate is

claimed. Mail at other rates must be

sorted to 5- and 3-digit destinations.

d. Smaller size packages of any copies

remaining may be prepared to the levels

noted in 2.4c after all required volume

or larger packages are prepared. These

smaller packages must be properly

labeled and placed on an appropriate

level pallet.

2.5 Labels

When pressure-sensitive labels are

used, a red Label D must appear on 5-

digit packages if the copies in those

packages show carrier route

information.

2.6 Residual

After all required and optional

packages are prepared, remaining copies

may be made into a residual package,

properly labeled and placed on an

appropriate level pallet.

3.0 OPTIONAL BUNDLES—

PERIODICALS AND STANDARD MAIL

(A)

3.1 Standards

Bundle presort and labeling must

meet the applicable general standards in

M010 through M030, except as noted

below. The palletized portion of a

mailing may not include bundles sorted

to foreign destinations.

3.2 Size

Bundle size: Two-package minimum,

20-pound maximum. Exception: For

copalletized publications or products,

bundles may contain 40 pounds of mail.

3.3 Sortation

Sortation is in the same sequence as

sacks.

3.4 Labeling

Labeling of bundles is not required

except for:

a. Bundles containing packages for

levels of sortation finer than the bundle

destination. These bundles must have a

facing slip with Lines 1 and 2 prepared

as required for sacks.

b. Bundles of Standard Mail (A) (other

than carrier route and 5-digit bundles)

placed on BMC pallets. These bundles

containing packages for levels of

sortation finer than the bundle

destination must have a facing slip with

Lines 1 and 2 prepared as required for

sacks. The facing slip must completely

cover the address and package label on

the top piece in the bundle.

4.0 PALLET PRESORT AND

LABELING

4.1 Packages, Bundles, Sacks, or

Trays

Presort sequence and labeling:

a. 5-digit (required for packages,

bundles, and sacks, optional for trays);

use destination of contents for Line 1.

b. 3-digit (optional); use L002,

Column A, for Line 1.

c. SCF (required); use L002, Column

B, for Line 1.

d. As appropriate:

(1) Periodicals: ADC (required); use

L004 for Line 1.

(2) Standard Mail: As appropriate, (a)

Destination ASF (allowed and required

only if DBMC rate is claimed for mail

deposited at ASF); use L602 for Line 1;

or (b) Destination BMC (required); use

L601 (L602 if DBMC rate claimed) for

Line 1.

e. As appropriate:

(1) Periodicals: Mixed ADC (optional);

use L004 for Line 1, based on ZIP Code

of entry office (in ‘‘Destination ZIP

Codes’’ column) (label to plant serving

entry post office if authorized by

processing and distribution manager).

(2) Standard Mail: Mixed BMC

(optional); use L601 for Line 1, based on

ZIP Code of entry office (in ‘‘Destination

ZIP Codes’’ column) (label to plant

serving entry post office if authorized by

processing and distribution manager).

4.2 Machinable Parcels—Standard

Mail

Presort sequence and labeling:

a. 5-digit (optional, but required for

Standard Mail (A) 3⁄5 rate and Standard

Mail (B) only); use destination of parcels

for Line 1.

b. ASF (allowed and required only if

DBMC rate is claimed for mail deposited

at ASF); use L602 for Line 1.
66668 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

c. Destination BMC (required); use

L601 (L602 if DBMC rate claimed) for

Line 1.

d. Mixed BMC (optional); use L601 for

Line 1, based on ZIP Code of entry office

(in ‘‘Destination ZIP Codes’’ column).

4.3 Presorted Special Standard Mail

a. 5-digit (5-digit rate only; required);

use destination of pieces or packages for

Line 1.

b. Destination BMC (BMC rate only;

required); use L601 for Line 1.

4.4 Line 2

Line 2, class of mail (shown below, as

appropriate), processing category and

mail type (e.g., LTRS BC), and any

processing code required by the

applicable labeling list under 4.1

through 4.3:

a. Periodicals: PERIOD or NEWS (as

appropriate).

b. Standard Mail (A): STD 3C.

c. Standard Mail (B): STD 4C.

5.0 PALLETS OF PACKAGES,

BUNDLES, AND TRAYS OF LETTERSIZE MAIL

5.1 Periodicals

When two or more letter-size

publications are part of a combined

mailing, the mailer must keep records

for each mailing (publication) as

required by standard. Preferred

Periodicals may be combined with

Regular or Publications Service

Periodicals only as permitted by

standard. Pieces claimed at delivery

office rates do not require separation

from pieces claimed at other rates.

5.2 Standard Mail (A)

Nonprofit mail may be included in

the same mailing or palletized on the

same pallet as other Standard Mail (A)

only as permitted by standard.

Automation rate and upgradable lettersize pieces may not be placed on the

same 5-digit pallet as pieces at other

rates. Pieces claimed at destination

delivery unit (DDU) rates do not require

separation from pieces claimed at other

rates.

5.3 BMC Pallets

Packages and bundles placed on BMC

pallets must be machinable on BMC

parcel sorting equipment. Line 2 on

pallet labels must reflect the processing

category of the pieces. A BMC pallet

may include pieces that are eligible for

the DBMC rate and others that are

ineligible if the mailer provides

documentation showing the pieces that

qualify for the DBMC rate.

5.4 Commingled Zones

Pieces of Standard Mail (B) for

different zones may be commingled

only under M630.

5.5 Securing Trays

Trays must be sleeved and strapped

under M033, except that strapping is not

required for trays on 5-digit, 3-digit, and

SCF pallets, or on pallets whose loads

are secured with stretchable or

shrinkable plastic wrap

6.0 PALLETS OF SACKS

All sacks remaining after all pallets

are prepared may be presented with the

palletized mailing (on the same mailing

statement), if the sacks are segregated

from the palletized portion of the

mailing.

7.0 PALLETS OF COPALLETIZED

PERIODICALS OR STANDARD MAIL

(A) FLAT-SIZE PIECES

7.1 Basic Standards

Copalletized flat-size mailings must

meet the standards in M041 and in 1.0

through 5.0, and those below. Any

combination of automation rate mailings

and nonautomation rate mailings is

subject to the restrictions in 5.0.

Packages in a copalletized mailing

qualify for the appropriate presort level

rate, regardless of the pallet level on

which they are placed.

7.2 Periodicals

Additional standards apply to

Periodicals:

a. Preferred Periodicals may be

combined with Regular or Publications

Service Periodicals only as permitted by

standard.

b. Documentation meeting the basic

standard in P012 must be provided with

each mailing. Before copalletizing, the

mailer must obtain the written approval

of the RCSC manager. Approval is based

on the mailer’’s demonstrated ability to

provide documentation meeting these

standards:

(1) Documentation by package and by

publication and edition showing the

number of pieces and copies in each

package and the per piece presort rate

claimed for each piece in each package,

or a listing by pallet showing (by presort

level (rate) and destination) the number

of copies and pieces of each publication

and edition.

(2) Documentation showing the

number of copies and pieces claimed at

the intra-SCF rate.

(3) Documentation showing that

packages of all publications and

editions are presorted to the appropriate

finest level pallet in the mailing.

(4) Documentation showing that 5-

digit, optional 3-digit, SCF, and ADC

pallets are prepared when the

applicable minimum volume is

developed in the copalletized mailing

for these destinations.

(5) A listing showing the destination

of pallets in the copalletized mailing.

(6) If the sacked portion of the mailing

is presented with the copalletized

portion, a report by sack showing the

number of pieces (and copies) of each

publication or edition at each presort

level (rate).

7.3 Standard Mail (A)

Additional standards apply to

Standard Mail (A):

a. Nonprofit Standard mailings may

be copalletized with one another but not

with mailings at other rates unless

permitted by standard.

b. Nonidentical-weight pieces may be

copalletized only if the correct postage

is affixed to each piece or if otherwise

authorized by the RCSC.

c. All pieces in mailings to be

copalletized must be subject to the

minimum per piece rate, or all subject

to the per pound rate, unless otherwise

authorized by the RCSC.

d. All pieces must have postage paid

with permit imprint, or all pieces must

have postage affixed.

e. When requested, the mailer must

present pallets selected by USPS

employees for verification.

f. At the time of mailing, the mailer

must provide a computer-generated

listing (in ZIP Code sequence and

numbered to correspond to the pallets)

that shows:

(1) Mailer’’s name and location,

owner of the mail, mailing segment, and

entry post office.

(2) For each copalletized product, the

number of pieces to each carrier route

by 5-digit ZIP Code, to each 5- and 3-

digit ZIP Code at the Basic and 3⁄5 rates,

in total for these categories for each

pallet and for the entire mailing.

Barcoded rates must be identified,

where applicable.

g. The number relating the computergenerated list to each pallet must be

placed in the lower right corner of the

pallet label in an easily read print size.

h. At the time of mailing, the mailer

must show how packages and bundles

are arranged on the pallets.

i. When preparing copalletized flatsize mailings of carrier route rate (e.g.,

Enhanced Carrier Route), automation

rate (e.g., 3/5 Barcoded), and regular rate

(e.g., Regular Basic) pieces, mailers must

separately group the packages at each

rate.

j. Pallets may be stretchwrapped or

otherwise secured only after USPS

verification.

k. When top caps are used, the mailer

must write the tare weight of the top cap
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66669

on the pallet label or in another

prominent location.

7.4 Line 2

Line 2 on pallet labels for copalletized

mailings: Class (PERIOD or NEWS, or

STD, as applicable), FLTS, and contents

(BC, and/or CR or ECR, and/or

PRESORT, as applicable).

7.5 Mailing Statement

Separate mailing statements are

required:

a. For Periodicals, a separate mailing

statement is required for each

publication and/or edition that is part of

the copalletized mailing. Mailers must

note on or in an attachment to the

mailing statement the name and issue

date of the publications with which

each publication and/or edition was

copalletized.

b. For Standard Mail (A), a separate

mailing statement must be prepared for

each mailing that is part of a single

copalletized shipment, except that

copalletized Regular, Enhanced Carrier

Route, and Automation rate mailings

produced as part of the same job may be

reported on the same mailing statement.

8.0 MIXED RATE LEVELS ON

PALLETS’’NONPROFIT STANDARD

MAIL (A)

8.1 Standards

Nonprofit mixed rate level mailings

must meet the standards in 4.0 and

those below.

8.2 Authorizations

Mailers must be authorized to

commingle either Nonprofit Carrier

Route, 3/5, and Basic rate mail on

pallets or Nonprofit Carrier Route and

Barcoded rate flats in packages. Mailers

do not need authorization to commingle

mixed rate level mailings when only

mailings of barcoded flats are presorted

on pallets. Nonidentical-weight pieces

may be commingled only if the correct

postage is affixed to each piece or if

otherwise authorized by the RCSC.

8.3 Endorsements

Carrier route presort endorsements

may appear only on pieces that qualify

for that rate. Carrier route information,

however, may appear on each piece in

the mailing.

8.4 Documentation

At the time of mailing, the mailer

must provide a computer-generated

listing (in ZIP Code sequence and

numbered to correspond to the pallets)

that describes the contents of each

pallet. The mailer must keep a copy of

this listing for 90 days after the mailing

is dispatched. When requested, the

mailer must present pallets selected by

USPS employees for verification by

comparison with the listing. The listing

must show:

a. Mailer’’s name and location, owner

of the mail, mailing segment, and entry

post office.

b. Number of pieces to each carrier

route by 5-digit ZIP Code, to each 5- and

3-digit ZIP Code at the Basic and 3/5

rates, in total for these categories for

each pallet and for the entire mailing.

Barcoded rates must be identified,

where applicable.

8.5 Additional Pallet Standards

Pallets must meet these additional

preparation standards:

a. The number relating the computergenerated list to each pallet must be

placed in the lower right corner of the

pallet label in an easily read print size.

b. At the time of mailing, the mailer

must show how packages and bundles

are arranged on the pallets.

c. When preparing copalletized

Nonprofit Carrier Route and Barcoded

rate mailings of flat-size pieces, mailers

must separately group the packages at

each rate.

d. Pallets may be stretchwrapped or

otherwise secured only after USPS

verification.

e. When top caps are used, the mailer

must write the tare weight of the top cap

on the pallet label or in another

prominent location.

9.0 PALLETIZING MACHINABLE

PARCELS

9.1 Standard Mail (A)

Pieces may be eligible for the 3/5 rate

when prepared under 4.2a through 4.2c.

This eligibility includes pieces correctly

presorted under 4.2b and 4.2c to the

service area of the entry ASF/BMC.

9.2 Standard Mail (B)

Mailers must sack by zone, using the

applicable standards, any mail that

cannot be placed on 5-digit or BMC

pallets. Sacks containing mail remaining

after all pallets are prepared may be

presented with the palletized mailing

(on the same mailing statement), if the

sacks are segregated from the palletized

portion of the mailing. Pieces for

different zones may be commingled

only under M630.

9.3 DBMC Rate

If applicable, a BMC pallet may

include pieces that are eligible for the

DBMC rate and others that are

ineligible. The mailer must provide

documentation showing the pieces that

qualify for the DBMC rate.

9.4 Additional Standards

Pallets must meet these additional

preparation standards:

a. Pallets may be stretchwrapped or

otherwise secured only after USPS

verification.

b. When top caps are used, the mailer

must write the tare weight of the top cap

on the pallet label or in another

prominent location.

M050 Walk Sequence

* * * * *

3.0 DELIVERY SEQUENCE

INFORMATION

3.1 With Simplified Addressing

Walk-sequence rate pieces prepared

with a simplified address must be based

on delivery stop information obtained

within 6 months before the date of

mailing (or within 90 days before the

date of mailing for Carrier Route

Publications Service Periodicals or

Enhanced Carrier Route Standard Mail),

either from the Delivery Statistics File

or from the postmaster.

3.2 Without Simplified Addressing

Walk-sequence rate pieces prepared

with other than a simplified address

must be sequenced using USPS data

from one of the above sources, issued

within 6 months before the date of

mailing (or within 90 days before the

date of mailing for Carrier Route

Publications Service Periodicals or

Enhanced Carrier Route Standard Mail):

* * *

* * * * *

3.4 Line of Travel

Line-of-travel sequence is an option

for mailers who prepare carrier route

mailings other than high density/125-

piece or saturation mailings. Line-oftravel sequencing is required for Basic

Enhanced Carrier Route Standard Mail

and for Carrier Route Publications

Service Periodicals (except automationcompatible letter-size pieces). Line-oftravel sequence is not an exact walk

sequence but a sequence of ZIP+4 codes

arranged in the order that the route is

served by a carrier. (First the ZIP+4

groups are sequenced, then the

addresses within each are identified as

being in ascending or descending order.)

The USPS Line-of-Travel (LOT) product

provides a list of the ZIP+4 codes each

route serves, identifies the order in

which they are delivered, and provides

an indicator specifying whether the

addresses in each must be sorted in

ascending or descending order. LOT

information must be updated at the

same frequency as carrier route codes,
66670 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

i.e., within 90 days before the date of

mailing.

* * * * *

4.0 DOCUMENTATION

* * * * *

4.2 High Density/125–Piece

For each carrier route to which 125-

piece walk-sequence or high density

rate mail is addressed, the mailer must

document the total number of pieces to

the route. If there are fewer than 125

pieces for a route, the documentation

must also show the number of possible

deliveries on the route.

* * * * *

M070 Mixed Classes

M071 Basic Information

[In 1.1, 1.2, and 1.3, replace ‘‘[T]hird-

[C]lass’’ with ‘‘Standard Mail (A)’’; in

1.2, replace ‘‘second-class’’ with

‘‘Periodicals’’; in 1.2c, replace ‘‘First- or

third-class’’ with ‘‘First-Class or

Standard Mail (A)’’; and in 1.3, replace

‘‘third- or fourth-class’’ with ‘‘Standard

Mail’’; no other change in text.]

M072 Express Mail and Priority Mail

Drop Shipment

[In 2.1, replace ‘‘Presorted First-Class

and carrier route presort’’ with ‘‘Retail

Presort and Automation’’; delete current

2.2 and renumber 2.3 as 2.2; in the

heading of 3.0, replace ‘‘Second-Class’’

with ‘‘Periodicals’’; in the title of 4.0,

replace ‘‘Third-Class’’ with ‘‘Standard

Mail (A)’’; in the title of 5.0, replace

‘‘Fourth-Class’’ with ‘‘Standard Mail

(B)’’; no other change in text.]

M073 Combined Mailings of Standard

Mail Machinable Parcels

1.0 BASIC STANDARDS

1.1 Description

Subject to authorization under 2.0, a

mailer authorized plant load or plantverified drop shipment privileges may

prepare a combined mailing of Regular

Standard Mail (A) and Standard Mail

(B) machinable parcels that have been

merged and presorted together in sacks

(under 3.0) or on pallets (under M045)

to achieve the finest level of presort.

The combined mailing must meet the

standards below and those that apply to

the rates claimed. Each parcel in a

combined mailing is subject to the

applicable Standard Mail rate, based on

the corresponding standards. Required

volume for bulk or presort rates is based

solely on the quantity of pieces eligible

for each rate at the required presort

level. Pieces claimed at other rates in

the same sack or on the same pallet do

not count.

1.2 Postage Payment

Postage for all pieces must be paid

with permit imprint at the post office

serving the mailer’’s plant under P710,

P720, or P730. The applicable

agreement must include procedures for

combined mailings approved by the

RCSC.

1.3 Documentation

Separate mailing statements must be

prepared for the Standard Mail (A) and

(B) pieces. Within each group,

combined forms may be prepared where

standards and the forms permit. All

mailing statements must be provided at

the time of mailing, accompanied by a

computer-generated listing (in ZIP Code

sequence and numbered to correspond

to the sacks or pallets) that describes the

contents of each sack or pallet. The

mailer must keep a copy of this listing

for 90 days after the mailing is

dispatched. This listing must show the

mailer’s name and location, the name

and owner of each product, and the

entry post office. For each product, the

listing must detail the number of pieces

at each rate by 5-digit ZIP Code and

totals for each pallet or sack and for the

entire mailing. Additional

documentation must be provided for all

mailings of nonidentical-weight pieces

or in which basic and 3/5 presort rate

pieces are commingled and the mailer

has not separated the sacks or pallets

containing the pieces at the respective

rates. Such documentation must be in

one of these formats:

a. Segmented sequentially by level of

sortation (e.g., 5-digit, destination BMC)

and, within each, listing a unique

number or Line 1 of each sack or pallet

label. For each 5-digit or destination

ASF/BMC entry, the number of pieces at

each rate must be shown by 5-digit ZIP

Code or 3-digit ZIP Code prefix,

respectively. Destination ASF/BMC

sacks or pallets must show a total

number of pieces in the sack or on the

pallet. The entries must be summarized

for the whole mailing to show total

pieces at each rate, total pieces, and

total postage (and additional postage

due, as applicable). The sacks or pallets

do not have to be presented to the USPS

in any particular order.

b. Segmented sequentially by level of

sortation and, by 5-digit ZIP Code (for

5-digit sacks) or 3-digit ZIP Code prefix

(for other sacks or pallets), the number

of pieces at each rate must be listed. The

entries must be totaled for the whole

mailing to show total pieces at each rate,

total pieces, and total postage (or

additional postage due, as applicable). If

different amounts of additional postage

are due, the summary must further

detail the number of pieces at each

postage amount or at each amount of

additional postage due. The sacks or

pallets must be separated by level of

sortation when presented for

acceptance.

2.0 AUTHORIZATION

* * * * *

2.3 Term

An authorization to combine Standard

Mail (A) and (B) machinable parcels

expires at the same time as the

applicable postage payment system

authorization and may not be for more

than 2 years. A mailer may terminate an

authorization at any time by written

notice to the postmaster of the office

serving the mailer’s location. The USPS

may terminate an authorization, by

written notice to the mailer explaining

the reasons for termination, if it finds

that the mailer does not meet the

applicable standards.

3.0 SACK PREPARATION

3.1 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: optional, but required for

Standard Mail (A) Regular and

Nonprofit 3/5 rate eligibility (10 pieces/

20 pounds/1,000 cubic inches

minimum, smaller volume not

permitted); use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. Destination ASF: allowed and

required for DBMC rate only (10 pieces/

20 pounds/1,000 cubic inches

minimum, smaller volume not

permitted); use L602 for Line 1.

c. Destination BMC: required (10

pieces/20 pounds/1,000 cubic inches

minimum, smaller volume not

permitted); use L602 if DBMC rate is

claimed; otherwise, use L601 for Line 1.

d. Mixed BMC: required (no

minimum); use L601 to show entry BMC

for Line 1.

3.2 Line 2

Line 2:

a. 5-digit, ASF, and destination BMC

sacks: STD 3C/4C MACH.

b. Mixed BMC sacks: STD 3C/4C

MACH MIXED BMC.

c. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

M074 Plant Load Mailings

[In 3.3b and 3.3c, replace ‘‘SDC’’ with

‘‘ADC’’; in 3.3 and 3.7b, replace

‘‘second-class’’ with ‘‘Periodicals’’; and

in 3.4 and 3.7c, replace ‘‘[T]hird- or
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66671

[F]ourth-[C]lass [M]ail’’ with ‘‘Standard

Mail’’; no other change in text.]

M100 First-Class Mail

[Renumber current M101 as M120 with

no change in text; replace current M102

and M103 with new M130 as follows:]

M120 Priority Mail

* * * * *

M130 Retail Presort

1.0 BASIC STANDARDS

1.1 All Pieces

All Retail Presort mailings are subject

to these general standards:

a. Each mailing must meet the

applicable standards in E130 and M010

through M030.

b. All pieces must be in the same

processing category unless specifically

excepted by standard.

c. All pieces must be presorted

together and prepared under 2.0, 3.0,

4.0, or 5.0, as appropriate.

d. All pieces must be marked

‘‘Presort’’ and ‘‘First-Class.’’

e. Letter-size pieces (including cards)

must be prepared in letter trays; flat-size

pieces must be prepared in flat trays;

parcels must be prepared in sacks.

1.2 Local Exception

Postmasters may authorize

preparation of small volume mailings in

nonpostal containers if they consist

primarily of packages for local ZIP

Codes, do not exceed 20 pounds, and do

not require postal transportation for

processing.

2.0 BASIC PREPARATION—LETTERSIZE PIECES

2.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D, facing slip, or optional

endorsement line (OEL); labeling

optional.

b. 3-digit: required (10-piece

minimum, fewer not permitted); green

Label 3, facing slip, or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); pink Label A,

facing slip, or OEL.

d. Mixed ADC: required (no

minimum); tan Label MS, facing slip, or

OEL.

2.2 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: required (full trays); no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (full trays); no

overflow; use L002, Column A, for Line

1.

c. Entry SCF 3-digit(s): required (no

minimum); overflow allowed; use L002,

Column A, for Line 1.

d. ADC: required (full trays); no

overflow; use L004 for Line 1.

e. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry 3-digit facility

city/state/ZIP shown in L002, Column A

(use lowest ZIP in range).

2.3 Line 2

Line 2: FCM LTRS NON-OCR and, as

applicable:

a. Mixed ADC trays: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

3.0 OPTIONAL PREPARATION—

UPGRADABLE LETTER-SIZE PIECES

3.1 Definition

Upgradable pieces are those that meet

both the physical automation

compatibility standards in C810 and the

standards in C830 for an OCR clear

zone, for reflectance, and for paper that

can accept water-based ink. Addresses

on upgradable pieces must be machine

printed in a nonscript font. Upgradable

pieces prepared under 3.0 are not

packaged.

3.2 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: optional (full trays); no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (full trays); no

overflow; use L002, Column A, for Line

1.

c. Entry SCF 3-digit(s): required (no

minimum); overflow allowed; use L002,

Column A, for Line 1.

d. AADC: required (full trays); no

overflow; group pieces by 3-digit ZIP

Code prefix; use L804 for Line 1.

e. Mixed AADC: required (no

minimum); group pieces by AADC and,

within each, by 3-digit ZIP Code prefix;

for Line 1, use MXD, followed by the

entry 3-digit facility city/state/ZIP

shown in L002, Column A (use lowest

ZIP in range).

3.3 Line 2

Line 2: FCM LTRS OCR and, as

applicable:

a. Mixed AADC trays: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

4.0 PREPARATION OF FLAT-SIZE

PIECES

4.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D, facing slip, or optional

endorsement line (OEL).

b. 3-digit: required (10-piece

minimum, fewer not permitted); green

Label 3, facing slip, or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); pink Label A,

facing slip, or OEL.

d. Mixed ADC: required (no

minimum); tan Label MS, facing slip, or

OEL.

4.2 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: required (full trays), no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (full trays), no

overflow; use L002, Column A, for Line

1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required (full trays), no

overflow; use L004 for Line 1.

e. Mixed ADC: required (no

minimum); group pieces by 3-digit ZIP

Code prefix; for Line 1, use MXD,

followed by the entry 3-digit facility

city/state/ZIP shown in L002, Column A

(use lowest ZIP in range).

4.3 Line 2

Line 2: FCM FLTS and, on mixed

ADC trays, WKG.

5.0 PREPARATION OF PARCELS

5.1 Standards

First-Class parcels weighing 11

ounces or less, except Priority Mail,

must be prepared under the standards

below. All Priority Mail and any parcels

weighing more than 11 ounces must be

prepared under the applicable standards

in M120.

5.2 Package Size, Presort, and Labeling

Packaging is not required for pieces 1⁄2

inch thick or larger if they are placed in

a sack to the same destination as that to

which they would otherwise have been

packaged. Package size, presort

sequence, and labeling:
66672 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D, facing slip, or optional

endorsement line (OEL).

b. 3-digit: required (10-piece

minimum, fewer not permitted); green

Label 3, facing slip, or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); pink Label A,

facing slip, or OEL.

d. Mixed ADC: required (no

minimum); tan Label MS, facing slip, or

OEL.

5.3 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: required (10-pound

minimum); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (10-pound

minimum); use L002, Column A, for

Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required (10-pound

minimum); use L004 for Line 1.

e. Mixed ADC: required (no

minimum); use MXD, followed by the

entry 3-digit facility city/state/ZIP

shown in L002, Column A (use lowest

ZIP in range).

5.4 Line 2

Line 2: FCM IRREG and, on mixed

ADC sacks, WKG.

6.0 DOCUMENTATION

Documentation meeting the standards

in P012 must be submitted with each

mailing statement.

M200 Periodicals

M210 Regular and Publications

Service Periodicals

1.0 BASIC STANDARDS

1.1 General Preparation

All pieces in each Regular or

Publications Service mailing must be in

the same processing category and must

be presorted together to the finest extent

required. Automation-compatible

Publications Service pieces and

Barcoded rate Regular Periodicals must

be prepared under M800; other pieces

under 2.0 and 3.0, 4.0, 5.0, or 6.0, as

appropriate. Letter-size pieces must be

prepared in trays; flat-size pieces must

be prepared in sacks. Palletization of

trays, sacks, or packages is as permitted

by M040. Postmasters may authorize

preparation of small volume mailings in

nonpostal containers if they consist

primarily of packages for local ZIP

Codes, do not exceed 20 pounds, and do

not require postal transportation for

processing.

1.2 Carrier Route and Walk-Sequence

Preparation for carrier route rates is

optional and is subject to additional

standards. Regular Periodicals for which

a walk-sequence discount is claimed

and Publications Service Periodicals

optionally prepared in walk sequence

must be prepared as a carrier route

mailing under this section and the walksequencing standards in M050; pieces

prepared with a simplified address must

also meet the standards in A040.

1.3 Firm Packages

A ‘‘firm package’’ is two or more

copies for the same address placed in

one package. If each copy has a delivery

address, each may be claimed as a

separate piece for presort and on the

mailing statement. The firm package

may be claimed as one piece for presort

and on the mailing statement. If the

copies are unaddressed, the firm

package is considered one piece. A firm

package presorted and claimed as one

piece must be accompanied by (but

must be physically separate from) five

other pieces packaged to the same

destination to satisfy a six-piece package

requirement when applicable, regardless

of the number of copies in the firm

package.

2.0 PACKAGE PREPARATION

2.1 General

Packaging preparation is subject to

M020 and the specific standards below.

2.2 Carrier Route Packages

Mailers may choose to prepare carrier

route packages at a higher level of route

saturation (e.g., only if there are at least

15 pieces per route). Under this option,

smaller packages of six or more pieces

per carrier route not prepared for carrier

route rates must be prepared for and

paid at another applicable rate.

2.3 Regular Periodicals

In addition to labeling under 2.4b,

each package of Regular Periodicals

walk-sequence mail (or optionally

prepared Publications Service walk

sequence mail) must be labeled to show

that the mail is walk sequenced. A

facing slip with the phrase ‘‘HIGH

DENSITY WALK-SEQUENCED

CARRIER ROUTE MAIL’’ or

‘‘SATURATION WALK-SEQUENCED

CARRIER ROUTE MAIL’’ (as applicable)

may be placed on the top of each

package of walk-sequence mail. It may

be an address label with the required

information placed on a sample

mailpiece that is the top piece in the

package, or a separate piece of paper

affixed to the top of the package. If

packages are prepared without facing

slips, an optional endorsement line or

carrier route information line must be

placed on each piece in the package to

provide the equivalent information.

2.4 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. Firm: optional (two-piece

minimum), blue Label F or optional

endorsement line (OEL).

b. Carrier route: optional but required

for rate eligibility (six-piece minimum,

fewer not permitted); labeling required

only if placed in a 5-digit carrier routes

tray or sack (purple Label CR, facing

slip, OEL, or CR information line).

c. 5-digit: required (six-piece

minimum, fewer not permitted); red

Label D or OEL.

d. 3-digit: required (six-piece

minimum, fewer not permitted); green

Label 3 or OEL.

e. ADC: required (six-piece minimum,

fewer not permitted); pink Label A or

OEL.

f. Mixed ADC: required (no

minimum); tan Label MS or OEL.

3.0 SACK PREPARATION (FLATS)—

REGULAR PERIODICALS

3.1 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. Carrier route: required for rate

eligibility at 24 pieces, optional with

one six-piece package minimum; use 5-

digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. 5-digit carrier routes (carrier route

packages only): required for rate

eligibility (no minimum); use 5-digit ZIP

Code destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: required at 24 pieces,

optional with one six-piece package

minimum; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum; use L002, Column A, for Line

1.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. ADC: required at 24 pieces, optional

with one six-piece package minimum;

use L004 for Line 1.

g. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66673

3.2 Line 2

Line 2: PERIOD or NEWS (as

applicable), FLTS or IRREG (as

applicable), and:

a. Basic Carrier Route sacks: route

type and number.

b. High Density sacks: WSH, route

type and number.

c. Saturation sacks: WSS, route type

and number.

d. 5-digit carrier routes sacks: CR–

RTS.

e. Mixed ADC sacks: WKG.

f. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

4.0 SACK PREPARATION (FLATS)—

PUBLICATIONS SERVICE

4.1 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. Carrier route: required for rate

eligibility at 24 pieces, optional with

one six-piece package minimum; use 5-

digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. 5-digit carrier routes (carrier route

packages only): required for rate

eligibility (no minimum); use 5-digit ZIP

Code destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: required at 24 pieces,

optional with one six-piece package

minimum; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum; use L002, Column A, for Line

1.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. ADC: required at 24 pieces, optional

with one six-piece package minimum;

use L004 for Line 1.

g. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

4.2 Line 2

Line 2: PERIOD or NEWS (as

applicable), FLTS or IRREG (as

applicable), and:

a. Carrier Route sacks: LOT (or WSH

or WSS if applicable), route type and

number.

b. 5-digit carrier routes sacks: CR–

RTS.

c. Mixed ADC sacks: WKG.

d. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

5.0 TRAY PREPARATION (LETTERSIZE PIECES)—REGULAR

PERIODICALS

5.1 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. Carrier route: required for rate

eligibility at 24 pieces, optional with

one six-piece package minimum; use 5-

digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. 5-digit carrier routes (carrier route

packages only): required for rate

eligibility (no minimum); use 5-digit ZIP

Code destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: required at 24 pieces,

optional with one six-piece package

minimum; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum; use L002, Column A, for Line

1.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. ADC: required at 24 pieces, optional

with one six-piece package minimum;

use L004 for Line 1.

g. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

5.2 Line 2

Line 2: PERIOD or NEWS (as

applicable), LTRS and:

a. Basic Carrier Route trays: route type

and number.

b. High Density trays: WSH, route

type and number.

c. Saturation trays: WSS, route type

and number.

d. 5-digit carrier routes trays: CR–

RTS.

e. Mixed ADC trays: WKG.

f. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

6.0 TRAY PREPARATION (LETTERSIZE PIECES)—PUBLICATIONS

SERVICE

6.1 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. Carrier route: optional, but required

for rate eligibility if full tray; no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes (carrier route

packages only): required for rate

eligibility (no minimum); use 5-digit ZIP

Code destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: required (full trays); no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit: required (full trays); no

overflow; use L002, Column A, for Line

1.

e. Entry SCF 3-digit(s): required (no

minimum); overflow allowed; use L002,

Column A, for Line 1.

f. ADC: required (full trays); no

overflow; use L004 for Line 1.

g. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

6.2 Line 2

Line 2: PERIOD or NEWS (as

applicable), LTRS and:

a. Carrier route trays: LOT (or WSH or

WSS if applicable), route type and

number.

b. 5-digit carrier routes trays: CR–RTS.

c. Mixed ADC trays: WKG.

d. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

7.0 BEDLOADED BUNDLES (FLATS)

7.1. Authorization

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of flat-size

Periodicals in bundles outside of sacks,

subject to these standards:

a. This preparation must benefit the

USPS. Generally, authorization is

approved only when the number of

bundles is not more than the number of

sacks that would otherwise be used in

a mailing.

b. The publisher or agent must submit

an application for each publication,

showing the name of the publication,

the frequency of mailing, the post

offices to which shipments are to be

made, and the approximate numbers of

copies and bundles to be deposited at

each office.

c. The RCSC manager rules on the

application and informs the applicant in

writing. If an authorization is approved,

the publisher or agent must be prepared

to provide information similar to that

required on the original application for

future issues of the publication, if
66674 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

requested by the RCSC manager.

Authorization is approved for a specific

period, not to exceed 2 years.

d. Authorization to bundle instead of

sack may be revoked when it is

determined that the preparation method

no longer benefits the USPS.

7.2 Package Preparation

Packages must be presorted and

labeled under 2.0 and meet the

applicable basic standards in M020 and

these conditions:

a. Packages must contain at least six

pieces but no more than 20 pounds of

mail.

b. Firm packages may contain as few

as two copies of a publication and do

not have to be consolidated into bundles

with other packages to the same 5-digit

destination.

c. All pieces must be in one package

if they weigh less than 10 pounds. Ten

pounds or more of mail for a destination

must be prepared in packages weighing

from 10 to 20 pounds each.

d. The last package to a destination

may contain less than 10 pounds of

mail.

e. All palletized packages of

copalletized publications must contain

at least six pieces.

7.3 Bundle Preparation

Bundles must be presorted under 3.0

or 4.0 (as appropriate) and meet the

applicable standards in M020 and these

conditions:

a. Bundle size for all required presort

levels: required (20 pounds/1,000 cubic

inches minimum, 40 pounds maximum;

smaller bundles not permitted).

b. Bundle size for all optional presort

levels: optional (20 pounds/1,000 cubic

inches minimum, 40 pounds maximum;

smaller bundles not permitted).

c. Bundles other than carrier route

and 5-digit bundles must be labeled

with facing slips that have similar

information to that required for sack

labels. A facing slip is not required on

carrier route bundles. Five-digit bundles

must contain pieces with the correct

optional endorsement line or have a red

Label D.

7.4 Physical Characteristics

Bundles must be machinable on USPS

sack-sorting equipment, unless they

consist of publications for entry and

delivery in the same SCF service area.

Machinability can be improved by

cross-strapping and using heavy-gauge

shrinkwrap or stretchwrap on each

bundle. Bundles entered and delivered

in the same SCF service area must be

securely bound to withstand normal

handling without breakage or injury to

USPS employees or damage to

mechanized sorting systems. Binding

material must be applied at least once

around both the length and girth. Wire

and metal strapping are prohibited.

8.0 COMBINING MULTIPLE

PUBLICATIONS OR EDITIONS

8.1 Basic Information

A combined mailing is a mailing in

which individually addressed copies of

two or more Periodicals publications or

editions are merged into a single

mailstream, during production or after

finished copies are produced, and all

copies are presorted together to achieve

the finest presort possible for the

combined mailing. This process is also

known as comailing. More than one

publication, or edition of a publication,

may be combined to meet the volume

standard per tray, sack, or bundle,

applicable to the presort rate claimed.

Each piece must meet all applicable

standards for the specific rate claimed.

Nonprofit and classroom publications

may be combined with Regular or

Publications Service publications only

as permitted by standard. Letter-size

pieces of Regular and Publications

Service mail may not be combined.

8.2 Mailing Statements

A separate mailing statement must be

prepared for the postage computations

for each publication or edition that is

part of the combined mailing. The name

and issue date of the publications with

which each publication or edition was

combined must be noted on, or attached

to, the mailing statements. To report

postage for firm packages for any

combination not exclusively of

Publications Service publications, the

per piece postage computation (and

nonadvertising adjustment, if

applicable) for all copies included in

firm packages must be on the mailing

statement for the publication (having

copies in those packages) that contains

the higher (or highest) amount of

advertising.

9.0 DOCUMENTATION

The publisher must be prepared to

support information on mailing

statements required with a Periodicals

publication (e.g., the number of pieces

or weight of copies addressed or sorted

to specific destinations or zones,

prepared at specific levels of presort, or

prepared to qualify for a particular rate

or discount). Except for mailings

containing pieces at an automation rate,

a destination entry rate, or a walksequence rate, the publisher may meet

this standard at the time of mailing by

separating sacks into groups based on

the presort level for which their

contents qualify. In other situations, the

publisher must have available

documentation meeting the standards in

P012 that describes the mailing in

sufficient detail to allow verification of

the accompanying mailing’s compliance

with applicable preparation and

eligibility standards.

M290 Preferred Periodicals

[Text of current M201, M202, M203, and

M205; M201.1.0, M202.1.0, and

M203.1.0 are combined into M290.1.0;

the remainder of M201, M202, and

M203, and all of M205, are redesignated

as M290.2.0, 3.0, 4.0, and 5.0,

respectively, with subsections

renumbered accordingly; no changes in

text except to use correct class and rate

names.]

1.0 BASIC STANDARDS

1.1 Presort

All pieces in a Preferred Periodicals

mailing must be presorted. All pieces

must be in the same processing category

unless specifically excepted by

standard. Except for automation rate

mailings, presort must at a minimum

meet the standards in 2.0. Additional

preparation might qualify pieces for

other presort rates or discounts.

Automation rate mailings must meet the

presort standards in M800.

1.2 Single-Piece

Subject to the applicable presort

standards, if presorting results in a

single piece remaining that cannot be

included in a package already prepared,

that single piece may be sorted to a tray,

sack, or pallet, as appropriate, without

being prepared as a ‘‘package.’’

1.3 Loose Packing

District managers may authorize loose

packing of faced, unpackaged flat-size

mail if there are enough pieces to fill a

No. 3 sack for the same 5-digit ZIP Code

destination.

1.4 Firm Packages

A ‘‘firm package’’ is two or more

copies for the same address placed in

one package. If each copy has a delivery

address, each may be claimed as a

separate piece for presort and on the

mailing statement. The firm package

may be claimed as one piece for presort

and on the mailing statement. If the

copies are unaddressed, the firm

package is considered one piece. A firm

package presorted and claimed as one

piece must be accompanied by (but

must be physically separate from) five

other pieces packaged to the same

destination to satisfy a six-piece package

requirement when applicable, regardless
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66675

of the number of copies in the firm

package.

1.5 Nonpostal Containers

Postmasters may authorize

preparation of small volume mailings in

nonpostal containers if they consist

primarily of packages for local ZIP

Codes, do not exceed 20 pounds, and

are cost effective.

2.0 PREPARATION FOR LEVEL G/J

RATES

2.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. Firm: optional with at least two

pieces; blue Label F or optional

endorsement line (OEL).

b. 5-digit: required at six pieces;

smaller packages permitted; red Label D

or OEL; labeling optional.

c. City: optional with at least six

pieces; yellow label C or OEL.

d. 3-digit: required at six pieces;

smaller packages permitted; green Label

3 or OEL.

e. SCF: optional at six pieces; smaller

packages permitted; green Label 3 or

OEL.

f. ADC: required with at least six

pieces; pink Label A or OEL.

g. Mixed ADC: required with no

minimum; tan Label MS or OEL.

2.2 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: required at four packages;

fewer packages permitted; use 5-digit

ZIP Code destination of packages for

Line 1, preceded for military mail by the

correct prefixes under M031.

b. City: optional with no minimum

except as required for rate eligibility;

use lowest ZIP Code for destination

from L001 for Line 1.

c. 3-digit: required at four packages;

fewer packages permitted; use L002,

Column A, for Line 1.

d. SCF: optional with no minimum;

use L002, Column B, for Line 1.

e. ADC: required at four packages;

fewer packages permitted; use L004 for

Line 1.

f. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

2.3 Line 2

Line 2: PERIOD or NEWS (as

applicable), processing category, and:

a. City sacks: CITY, right-justified

under the ZIP Code on Line 1.

b. Mixed ADC sacks: WKG.

c. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

3.0 PREPARATION FOR LEVEL H

RATES

3.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. Firm: optional with at least two

pieces, subject to 1.5; blue Label F or

optional endorsement line (OEL).

b. 5-digit: required at six pieces;

smaller packages not permitted; red

Label D or OEL; labeling optional.

c. City: optional with at least six

pieces; yellow Label C or OEL.

d. Unique 3-digit: required at six

pieces; smaller packages not permitted;

green Label 3 or OEL.

3.2 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: required at four packages;

fewer packages permitted; use 5-digit

ZIP Code destination of packages for

Line 1, preceded for military mail by the

correct prefixes under M031.

b. City: optional at one six-piece

package, as required for rate eligibility;

use lowest ZIP Code for destination

from L001 for Line 1.

c. 3-digit: required at four packages;

fewer packages permitted; use L002,

Column A (cities identified with two

bullets), for Line 1.

3.3 Line 2

Line 2: PERIOD or NEWS (as

applicable) and processing category

(and, on city sacks, CITY right-justified

under the ZIP Code on Line 1).

4.0 PREPARATION FOR LEVEL I/K

RATES

4.1 Carrier Route

‘‘Carrier route’’ includes city carrier

routes, rural routes, highway contract

routes, post office box sections, and

general delivery units.

4.2 Trays

Mailings of letter-size pieces may be

prepared in letter trays rather than

sacks, subject to 3.1. Rate eligibility

remains subject to the applicable

standards. Letter-size pieces prepared in

trays must be packaged under 2.0,

except that packages are not required

when there is enough mail to fill a tray

for the same carrier route.

4.3 Walk-Sequence Mail

Pieces for which a walk-sequence

discount is claimed must be prepared as

a carrier route mailing under this

section and the walk-sequencing

standards in M050. Pieces prepared

with a simplified address must also

meet the corresponding standards.

Walk-sequence letter- and flat-size

pieces must be prepared in packages. In

addition to labeling under 4.4 and 4.5,

each package of walk-sequence mail

must be labeled to show that the mail

is walk sequenced. A facing slip with

the phrase ‘‘WALK-SEQUENCED

CARRIER ROUTE MAIL’’ may be placed

on the top of each package of walksequence mail. It may be an address

label with the required information

placed on a sample mailpiece that is the

top piece in the package, or a separate

piece of paper affixed to the top of the

package. If packages are prepared

without facing slips, ‘‘WS’’ must

immediately precede the carrier route

information on a carrier route

information line on each piece in the

package.

4.4 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. Firm: optional with at least two

pieces, subject to 1.5; blue Label F or

optional endorsement line (OEL).

b. Carrier route: required at six pieces,

subject to 4.6; smaller packages not

permitted; label under 4.5.

4.5 Package Labels

Carrier route packages labels are

based on the level of sack in which

placed:

a. No label is required if the package

is placed in a correctly labeled carrier

route sack.

b. Packages in 5-digit carrier routes

sacks must have a facing slip unless the

pieces in the package show a carrier

route information line.

c. Optional endorsement lines may be

used instead of carrier information lines

or facing slips.

4.6 Higher Level

Mailers may choose to prepare carrier

route packages at a higher level of route

saturation than required in 4.4b (e.g.,

only when there are at least 15 pieces

per route). Under this option, smaller

packages (but with six or more pieces

per carrier route) not prepared as

required for carrier route rates must be

claimed at another rate and prepared

accordingly.

4.7 Tray or Sack Size, Presort, and

Labeling

Tray presort is in the same sequence

as for sacks; a tray must be prepared for

a required presort destination when the

corresponding pieces (or packages of

pieces) fill a tray. Minimum volume per
66676 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

tray is the same as for a comparable

sack. The information placed on tray

labels is the same as on sack labels. Tray

or sack size, presort sequence, and

labeling:

a. Carrier route: optional at one sixpiece package minimum, required for

rate eligibility; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. Carrier routes: optional at

minimum of one six-piece package each

for two different routes in the same 5-

digit ZIP Code area; required for rate

eligibility; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

4.8 Line 2

Line 2: PERIOD or NEWS (as

applicable), processing category, and:

a. Walk-sequence carrier route trays or

sacks: WS, and route type and number.

b. Carrier route trays or sacks: route

type and number.

c. 5-digit carrier routes trays or sacks:

CARRIER ROUTES.

5.0 BEDLOADED BUNDLES (FLATS)

5.1. Authorization

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of flat-size

Periodicals in bundles outside sacks,

subject to these standards:

a. This preparation must benefit the

USPS. Generally, authorization is

approved only when the number of

bundles is not more than the number of

sacks that would otherwise be used in

a mailing.

b. The publisher or agent must submit

an application for each publication,

showing the name of the publication;

the frequency of mailing, the post

offices to which shipments are to be

made, and the approximate numbers of

copies and bundles to be deposited at

each office.

c. The RCSC manager rules on the

application and informs the applicant in

writing. If an authorization is approved,

the publisher or agent must be prepared

to provide information similar to that

required on the original application for

future issues of the publication, if

requested by the RCSC manager.

Authorization is approved for a specific

period, not to exceed 2 years.

d. Authorization to bundle instead of

sack may be revoked when it is

determined that the preparation method

no longer benefits the USPS.

5.2 Package Preparation

Packages must be presorted and

labeled under 2.0 and meet the

applicable basic standards in M020 and

these conditions:

a. Packages must contain at least six

pieces but no more than 20 pounds of

mail.

b. Firm packages may contain as few

as two copies of a publication and do

not have to be consolidated into bundles

with other packages to the same 5-digit

destination.

c. All pieces must be in one package

if they weigh less than 10 pounds. Ten

pounds or more of mail for a destination

must be prepared in packages weighing

from 10 to 20 pounds each.

d. The last package to a destination

may contain less than 10 pounds of

mail.

e. All palletized packages of

copalletized publications must contain

at least six pieces.

5.3 Bundle Preparation

Bundles must be presorted under 3.0

and meet the applicable standards in

M020 and these conditions:

a. Bundle size for all required presort

levels: required (20 pounds/1,000 cubic

inches minimum, 40 pounds maximum;

smaller bundles not permitted).

b. Bundle size for all optional presort

levels: optional (20 pounds/1,000 cubic

inches minimum, 40 pounds maximum;

smaller bundles not permitted).

c. Bundles other than carrier route

and 5-digit bundles must be labeled

with facing slips that have similar

information to that required for sack

labels. A facing slip is not required on

carrier route bundles. Five-digit bundles

must contain pieces with the correct

optional endorsement line or have a red

Label D.

5.4 Physical Characteristics

Bundles must be machinable on USPS

sack-sorting equipment, unless they

consist of publications for entry and

delivery in the same SCF service area.

Machinability can be improved by

cross-strapping and using heavy-gauge

shrinkwrap or stretchwrap on each

bundle. Bundles entered and delivered

in the same SCF service area must be

securely bound to withstand normal

handling without breakage or injury to

USPS employees or damage to

mechanized sorting systems. Binding

material must be applied at least once

around both the length and girth. Wire

and metal strapping are prohibited.

6.0 COMBINING MULTIPLE

PUBLICATIONS OR EDITIONS

6.1 Basic Information

A combined mailing is a mailing in

which individually addressed copies of

two or more Periodicals publications or

editions are merged into a single

mailstream, during production or after

finished copies are produced, and all

copies are presorted together to achieve

the finest presort possible for the

combined mailing. This process is also

known as comailing. More than one

publication, or edition of a publication,

may be combined to meet the volume

standard per tray, sack, or bundle,

applicable to the presort rate claimed.

Each piece must meet all applicable

standards for the specific rate claimed.

Nonprofit and classroom publications

may be combined with Regular or

Publications Service publications only

as permitted by standard.

6.2 Mailing Statements

A separate mailing statement must be

prepared for the postage computations

for each publication or edition that is

part of the combined mailing. The name

and issue date of the publications with

which each publication or edition was

combined must be noted on, or attached

to, the mailing statements. To report

postage for firm packages, the per piece

postage computation (and

nonadvertising adjustment, if

applicable) for all copies included in

firm packages must be on the mailing

statement for the publication (having

copies in those packages) that contains

the higher (or highest) amount of

advertising.

7.0 DOCUMENTATION

The publisher must be prepared to

support information on mailing

statements required with a Periodicals

publication (e.g., the number of pieces

or weight of copies addressed or sorted

to specific destinations or zones,

prepared at specific levels of presort, or

prepared to qualify for a particular rate

or discount). Except for mailings

containing pieces at an automation rate,

a destination entry rate, or a walksequence rate, the publisher may meet

this standard at the time of mailing by

separating sacks into groups based on

the presort level for which their

contents qualify. In other situations, the

publisher must have available

documentation meeting the standards in

P012 that describes the mailing in

sufficient detail to allow verification of

the accompanying mailing’’s

compliance with applicable preparation

and eligibility standards.

[Delete current M300 and M400; no

change to M500.]

* * * * *
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66677

M600 Standard Mail

M610 Single-Piece and Regular

Standard Mail (A)

1.0 SINGLE-PIECE RATES

Each piece must be legibly marked

‘‘Standard’’ or ‘‘STD.’’ Unmarked pieces

are treated as First-Class Mail and

charged postage at the applicable FirstClass rate.

2.0 BASIC STANDARDS’’REGULAR

RATES

2.1 All Mailings

All Regular (Basic and 3/5) rate

mailings are subject to these general

standards:

a. Each mailing must meet the

applicable standards in E631 and M010

through M030.

b. All pieces must be in the same

processing category unless specifically

excepted by standard.

c. All pieces must be presorted

together and prepared under M610,

except under M045 for palletized mail.

d. Sortation determines rate

eligibility; pieces not claimed at or not

eligible for the 3/5 rate must be claimed

at the Basic rate.

e. All pieces must be marked ‘‘STD’’

(or ‘‘Standard’’) and ‘‘Presort.’’

f. Subject to 2.2, letter-size pieces

must be prepared in trays and, unless

palletized, flat-size pieces must be

prepared in sacks.

g. Postmasters may authorize

preparation of small volume mailings in

nonpostal containers if they consist

primarily of packages for local ZIP

Codes, do not exceed 20 pounds, and do

not require postal transportation for

processing.

2.2 Preparation Category

Pieces of Standard Mail (A) that, by

size, could qualify for an Automation

rate as either a letter or a flat, and that

are prepared as palletized flats at

Automation rates for flats or at

Enhanced Carrier Route rates, may be

prepared as palletized flats at Regular

nonletter rates as well if the number of

Regular nonletter rate pieces does not

exceed 10% of the total number of

pieces in the entire mailing job

(regardless of rate).

2.3 Documentation

Documentation meeting the standards

in P012 must be provided for all

mailings paid by permit imprint, in

which all pieces do not bear the correct

postage, or in which pieces are of

nonidentical weight.

3.0 BASIC PREPARATION’’REGULAR

RATE LETTER-SIZE PIECES

3.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D, facing slip, or optional

endorsement line (OEL); labeling

optional.

b. 3-digit: required (10-piece

minimum, fewer not permitted); green

Label 3, facing slip, or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); pink Label A,

facing slip, or OEL.

d. Mixed ADC: required (no

minimum); tan Label MS, facing slip, or

OEL.

3.2 3/5 Rate

Only mail eligible for the 3/5 rate (i.e.,

150 or more pieces in total for the 3-

digit area) can be prepared in 5- and 3-

digit trays

3.3 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: optional (full trays), subject

to 3.2; no overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (no minimum),

subject to 3.2; use L002, Column A, for

Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); overflow allowed; use L002,

Column A, for Line 1.

d. ADC: required (full trays); no

overflow; use L004 for Line 1.

e. Mixed ADC: required (no

minimum); for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

3.4 Line 2

Line 2: STD LTRS NON-OCR and, as

applicable:

a. Mixed ADC trays: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

4.0 OPTIONAL PREPARATION—

UPGRADABLE REGULAR RATE

LETTER-SIZE PIECES

4.1 Definition

Upgradable pieces are those that meet

both the physical automation

compatibility standards in C810 and the

standards in C830 for an OCR clear

zone, for reflectance, and for paper that

can accept water-based ink. Addresses

on upgradable pieces must be machine

printed in a nonscript font. Upgradable

pieces prepared under 4.0 are not

packaged.

4.2 3/5 Rate

Only mail eligible for the 3/5 rate (i.e.,

150 or more pieces in total for the 3-

digit area) can be prepared in 5- and 3-

digit trays

4.3 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: optional (full trays), subject

to 4.2; no overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (no minimum),

subject to 4.2; use L002, Column A, for

Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); overflow allowed; use L002,

Column A, for Line 1.

d. AADC: required (full trays); no

overflow; group pieces by 3-digit ZIP

Code prefix; use L804 for Line 1.

e. Mixed AADC: required (no

minimum); group pieces by AADC and,

within each, by 3-digit ZIP Code prefix;

for Line 1, use L805 (mail entered by the

mailer at an ASF or BMC) or L806, as

appropriate.

4.4 Line 2

Line 2: STD LTRS OCR and, as

applicable:

a. Mixed AADC trays: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

5.0 PREPARATION—REGULAR RATE

FLAT-SIZE PIECES AND IRREGULAR

PARCELS

5.1 Commingling Irregular Parcel

Mailings

RCSCs may authorize the

commingling of several permit imprint

mailings of irregular parcels to achieve

a finer presort, if adequate means are

available to ensure that proper postage

is paid. When authorizing commingling,

RCSCs may waive minimum quantity

standards for preparation of 5-digit and

3-digit packages if doing so results in a

finer makeup of at least 50% of the mail.

5.2 Packaging Irregular Parcels

Irregular parcels are packaged under

5.3, except that:

a. Irregular parcels 1/2 inch or more

thick need not be made up into

packages, if the packages would be

placed in a sack for same destination.

b. Items that are so large that 10 or

fewer pieces fill a sack need not be

packaged.
66678 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

c. Pieces in a 5-digit sack containing

both machinable and irregular parcels

need not be packaged. (Sacks containing

both machinable and irregular parcels

cannot be prepared to other presort

levels.)

5.3 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D, facing slip, or optional

endorsement line (OEL).

b. 3-digit: required (10-piece

minimum, fewer not permitted); green

Label 3, facing slip, or OEL.

c. ADC: required (10-piece minimum,

fewer permitted); pink Label A, facing

slip, or OEL.

d. Mixed ADC: required (no

minimum); tan Label MS, facing slip, or

OEL.

5.4 Loose Packing

District managers of customer services

may authorize loose packing of

unpackaged pieces to fill No. 3 sacks if

no material in a sack would be more

finely presorted if packaged. Pieces

must be faced and packed to remain

oriented in transit. The total weight of

pieces placed in one sack must not

exceed 70 pounds. Requests to loosepack mail must be made through the

post office of mailing.

5.5 When to Sack

A sack must be prepared when the

quantity of mail for a required presort

destination reaches either 125 pieces or

15 pounds of pieces, whichever occurs

first, subject to these conditions:

a. For identical-weight pieces, a

single-piece weight of 1.92 ounces (0.12

pound) results in 125 pieces weighing

15 pounds. Identical-weight pieces

weighing 1.92 ounces (0.12 pound) or

less must be prepared using the 125-

piece minimum, those that weigh more

must be prepared using the 15-pound

minimum.

b. For nonidentical-weight pieces,

mailers must either use the minimum

that applies to the average piece weight

for the entire mailing (divide the net

weight of the mailing by the number of

pieces; the resulting average singlepiece weight determines whether the

125-piece or 15-pound minimum

applies) or sack by the actual piece

count or mail weight for each sack, if

documentation can be provided with

the mailing that shows (specifically for

each sack) the number of pieces and

their total weight.

c. Mailers must note on the

accompanying mailing statement

whether they applied the 125-piece

(‘‘PCS’’) or 15-pound (‘‘WT’’) threshold

or if the method in 5.5b (‘‘BOTH’’) was

used.

5.6 Drop Shipment

Mailers who use Priority Mail or

Express Mail to drop ship Standard Mail

(A) may prepare sacks containing fewer

than 125 pieces or less than 15 pounds

of mail.

5.7 Sack Size, Presort, and Labeling

Sack size (subject to 5.4 through 5.6),

presort sequence, and labeling:

a. 5-digit: As applicable:

(1) Flats or irregular parcels: required

(125 pieces/15 pounds minimum,

smaller volume not permitted); use 5-

digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

(2) Commingled machinable and

irregular parcels: required at 10 pounds,

smaller volume permitted; use 5-digit

ZIP Code destination of packages for

Line 1, preceded for military mail by the

correct prefixes under M031.

b. 3-digit: required (125 pieces/15

pounds minimum, smaller volume not

permitted); use L002, Column A, for

Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required (125 pieces/15

pounds minimum, smaller volume not

permitted); use L004 for Line 1.

e. Mixed ADC: required (no

minimum) ; for Line 1, use MXD,

followed by the entry ADC facility city/

state/ZIP shown in L004.

5.8 Line 2

Line 2: STD and:

a. 5-digit sacks of machinable and

irregular parcels: 3C MACH AND

IRREG.

b. Sacks of commingled irregular

parcels: 3C COMM IRREG.

c. All other sacks: FLTS or 3C IRREG

(as appropriate).

d. Mixed ADC sacks: WKG.

e. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

6.0 REGULAR RATE MACHINABLE

PARCELS

6.1 5-Digit Sacks

Five-digit sacks containing both

machinable and irregular parcels must

be prepared under 5.0. Each possible 5-

digit sack must be prepared in any

mailing including pieces claimed at the

3⁄5 rate. If each possible 5-digit sack is

not prepared when there are 10 pounds

or more of mail for that destination, the

3⁄5 rate may not be claimed for any part

of the mailing.

6.2 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: optional at 10 pounds

except under 6.1; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. Destination ASF: required for

DBMC rate only (10 pounds minimum,

smaller volume not permitted); use L602

for Line 1.

c. Destination BMC: required (10

pounds minimum, smaller volume not

permitted); use L602 if DBMC rate is

claimed; otherwise, use L601 for Line 1.

d. Mixed BMC: required (no

minimum); use L601 to show entry BMC

for Line 1.

6.3 Line 2

Line 2: STD 3C MACH and:

a. Mixed BMC sacks: MIXED BMC.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

7.0 BEDLOADED BUNDLES OF

REGULAR RATE FLAT-SIZE PIECES

7.1 Authorization

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of Regular

Standard Mail (A) in bundles outside

mail sacks if this preparation benefits

the USPS. Generally, authorization is

approved only when the number of

bundles is not more than the number of

sacks that would otherwise be used in

a mailing. The mailer or agent must

submit an application for each product

that states the name of the mailer, the

frequency of mailing, the post offices to

which shipments are to be made, and

the approximate numbers of copies and

of bundles to be deposited at each

office. The RCSC manager rules on the

application and informs the applicant in

writing. If an authorization is approved,

the publisher or agent must be prepared

to provide information for future

mailings, similar to that required in the

original application if requested by the

RCSC manager. Authorization is

approved for a specific period, not to

exceed 2 years. Authorizations to

bundle instead of sack may be revoked

when it is determined that the

preparation method no longer benefits

the USPS.

7.2 Documentation

Documentation must be provided

under 2.3, applying those standards to

bundles rather than sacks.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66679

7.3 Package Preparation

Package size for all presort levels:

two-piece minimum, 20-pound

maximum. Presort sequence and

labeling of packages are subject to 5.0.

7.4 Bundle Preparation

Bundle size for all presort levels: two

packages/20 pounds/1,000 cubic inches

minimum, 40 pounds maximum;

smaller bundles not permitted. Presort

sequence is subject to 5.0. Five-digit

bundles must contain pieces with the

correct optional endorsement line or

have a red Label D. Other bundles must

be labeled with facing slips that have

similar information to that required for

sack labels. Packages too large to be

placed in a bundle do not require a

facing slip.

7.5 Physical Characteristics

Bundles must be machinable by USPS

sack-sorting equipment, unless they

consist of pieces for entry and delivery

in the same SCF service area.

Machinability might be improved by

cross-strapping and using heavy-gauge

shrinkwrap or stretchwrap on each

bundle. Bundles entered and delivered

in the same SCF service area must be

securely bound to withstand normal

handling without breakage or injury to

USPS employees or damage to

mechanized sorting systems. Binding

material must be applied at least once

around both the length and girth. Wire

and metal strapping are prohibited.

M620 Enhanced Carrier Route

Standard Mail (A)

1.0 BASIC STANDARDS

1.1 All Mailings

All Enhanced Carrier Route rate

mailings are subject to these general

standards:

a. Each mailing must meet the

applicable standards in E632 and M010

through M030.

b. All pieces must be in the same

processing category.

c. All pieces must be presorted

together and prepared under M620,

unless palletized under M045.

d. Sortation determines rate

eligibility; pieces not claimed at or not

eligible for the High Density or

Saturation rates must be claimed at the

Basic Carrier Route rate.

e. Subject to M012, all pieces must be

marked ‘‘STD’’ (or ‘‘Standard’’), ‘‘ECR’’

(or ‘‘Enhanced Carrier Route’’). In

addition, Basic, High Density, and

Saturation rate pieces must each be

marked ‘‘LOT,’’ ‘‘WSH,’’ or ‘‘WSS,’’

respectively, after the ECR marking (e.g.,

‘‘ECRWSS’’), in the correct optional

endorsement line under M013, or in the

correct carrier route information line

under M014. Pieces not claimed at the

corresponding rate must not bear the

‘‘LOT,’’ ‘‘WSH,’’ or ‘‘WSS’’ marking.

f. Subject to 1.2, letter-size pieces

must be prepared in trays and, unless

palletized, flat-size pieces must be

prepared in sacks.

g. Postmasters may authorize

preparation of small volume mailings in

nonpostal containers if they consist

primarily of packages for local ZIP

Codes, do not exceed 20 pounds, and do

not require postal transportation for

processing.

1.2 Preparation Category

Pieces of Standard Mail (A) that, by

size, could qualify for an Automation

rate as either a letter or a flat, and that

are prepared as palletized flats at

Enhanced Carrier Route rates, may be

prepared as palletized flats at Regular

nonletter rates as well if the number of

Regular nonletter rate pieces does not

exceed 10% of the total number of

pieces in the entire mailing job

(regardless of rate).

1.3 High Density and Saturation Rates

Mailpieces for which the High

Density or Saturation rate is claimed

must be prepared as a carrier route

mailing under this section and the walksequencing standards in M050. Pieces

prepared with a simplified address must

also meet the corresponding standards.

1.4 Documentation

Documentation is subject to the

general standards in P012. At the time

a mailing is submitted for presort and

postage verification, the mailer must

submit a list of the number of pieces

qualifying for each Enhanced Carrier

Route rate claimed by 5-digit ZIP Code

and, within each, by carrier route.

Additional documentation is required

under M050 for the High Density and

Saturation rates. After the first mailing,

the postmaster may authorize the mailer

to keep the records and submit them on

request. The mailer must keep these

records for 90 days after the mailing

date, or until any action pending on the

recalculation of postage is resolved to

the USPS’’s satisfaction.

2.0 PACKAGE PREPARATION

2.1 General

Only carrier route packages are

prepared. ‘‘Carrier route’’ includes city

carrier routes, rural routes, highway

contract routes, post office box sections,

and general delivery units. Packages are

not required in full carrier route trays.

2.2 Package Size and Labeling

Package size: carrier route; required

(10-piece minimum, fewer not

permitted). Carrier route package labels

are based on the level of sack or tray in

which placed:

a. No label is required if the package

is placed in a correctly labeled carrier

route tray or sack.

b. Packages in 5-digit carrier routes

trays and sacks must have a facing slip

unless the pieces in the package show

a carrier route information line.

Optional endorsement lines may be

used instead of carrier information lines

or facing slips.

2.3 Walk-Sequence Mail

A facing slip with the phrase ‘‘WALKSEQUENCED CARRIER ROUTE MAIL’’

may be placed on the top of each

package of walk-sequence mail. It may

be an address label with the required

information placed on a sample

mailpiece that is the top piece in the

package, or a separate piece of paper

affixed to the top of the package. A

facing slip does not satisfy the marking

on each piece required by 1.1e.

3.0 TRAY PREPARATION’’LETTERSIZE PIECES

3.1 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. Carrier route: required full tray; no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes: required (no

minimum); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

3.2 Line 2

Line 2: STD LTRS and:

a. Basic Carrier Route trays: ECRLOT,

route type and number.

b. High Density trays: ECRWSH, route

type and number.

c. Saturation trays: ECRWSS, route

type and number.

d. 5-digit carrier routes trays: CR-RTS.

4.0 SACK PREPARATION—OTHER

PIECES

4.1 When to Sack

A sack must be prepared when the

quantity of mail for a required presort

destination reaches either 125 pieces or

15 pounds of pieces, whichever occurs

first, subject to these conditions:

a. For identical-weight pieces, a

single-piece weight of 1.92 ounces (0.12

pound) results in 125 pieces weighing

15 pounds. Identical-weight pieces
66680 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

weighing 1.92 ounces (0.12 pound) or

less must be prepared using the 125-

piece minimum, those that weigh more

must be prepared using the 15-pound

minimum.

b. For nonidentical-weight pieces,

mailers must either use the minimum

that applies to the average piece weight

for the entire mailing (divide the net

weight of the mailing by the number of

pieces; the resulting average singlepiece weight determines whether the

125-piece or 15-pound minimum

applies) or sack by the actual piece

count or mail weight for each sack, if

documentation can be provided with

the mailing that shows (specifically for

each sack) the number of pieces and

their total weight.

c. Mailers must note on the

accompanying mailing statement

whether they applied the 125-piece

(‘‘PCS’’) or 15-pound (‘‘WT’’) threshold

or if the method in 4.1b (‘‘BOTH’’) was

used.

4.2 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. Carrier route: required (125 pieces/

15 pound minimum, smaller volume not

permitted); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes: required (no

minimum); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

4.3 Line 2

Line 2: STD, FLTS or 3C IRREG (as

appropriate), and:

a. Basic Carrier Route sacks: ECRLOT,

route type and number.

b. High Density sacks: ECRWSH, route

type and number.

c. Saturation sacks: ECRWSS, route

type and number.

d. 5-digit carrier routes sacks: CRRTS.

5.0 RESIDUAL MAIL

Pieces not presorted under 2.0 and

either 3.0 or 4.0 must be prepared as a

separate mailing at Regular or

Automation Standard Mail rates.

6.0 BEDLOADED BUNDLES

6.1 Authorization

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of Enhanced

Carrier Route Standard Mail in bundles

outside mail sacks if this preparation

benefits the USPS. Generally,

authorization is approved only when

the number of bundles is not more than

the number of sacks that would

otherwise be used in a mailing. The

mailer or agent must submit an

application for each product that states

the name of the mailer, the frequency of

mailing, the post offices to which

shipments are to be made, and the

approximate numbers of copies and of

bundles to be deposited at each office.

The RCSC manager rules on the

application and informs the applicant in

writing. If an authorization is approved,

the publisher or agent must be prepared

to provide information for future

mailings, similar to that required in the

original application if requested by the

RCSC manager. Authorization is

approved for a specific period, not to

exceed 2 years. Authorizations to

bundle instead of sack may be revoked

when it is determined that the

preparation method no longer benefits

the USPS.

6.2 Documentation

Documentation meeting the standards

in P012 must be provided for all

mailings paid with a permit imprint, in

which all pieces do not bear the correct

postage, or in which pieces are of

nonidentical weight.

6.3 Package Preparation

Package size for all presort levels:

two-piece minimum, 20-pound

maximum. Presort sequence and

labeling of packages are subject to 2.0.

6.4 Bundle Preparation

Bundle size for all presort levels: two

packages/20 pounds/1,000 cubic inches

minimum, 40 pounds maximum;

smaller bundles not permitted. Presort

sequence is subject to 4.0. Five-digit

bundles must contain pieces with the

correct optional endorsement line or

have a red Label D. Packages too large

to be placed in a bundle do not require

a facing slip.

6.5 Physical Characteristics

Bundles must be machinable by USPS

sack-sorting equipment, unless they

consist of pieces for entry and delivery

in the same SCF service area.

Machinability might be improved by

cross-strapping and using heavy-gauge

shrinkwrap or stretchwrap on each

bundle. Bundles entered and delivered

in the same SCF service area must be

securely bound to withstand normal

handling without breakage or injury to

USPS employees or damage to

mechanized sorting systems. Binding

material must be applied at least once

around both the length and girth. Wire

and metal strapping are prohibited.

M630 Standard Mail (B)

1.0 PARCEL POST

1.1 Marking

Pieces mailed at the single-piece

parcel post rates do not require a

marking. Each piece mailed at the bulk

parcel post rates must be marked ‘‘Bulk

Parcel Post’’ or ‘‘Bulk PP.’’ Each piece

mailed at the DBMC parcel post rates

must be marked ‘‘DBMC Parcel Post’’ or

‘‘DBMC PP.’’ If postage for the piece is

paid with a permit imprint and the

office of mailing is in a different 3-digit

ZIP Code area from the post office in the

return address, the 5-digit ZIP Code or

the 3-digit ZIP Code prefix of the office

of mailing must be included in the

indicia or incorporated in the required

marking (e.g., ‘‘DBMC PP 011’’ or

‘‘DBMC Parcel Post Mailed From

01101’’). Pieces not clearly marked as

required are treated as single-piece rate

parcel post and subject to additional

postage as necessary.

1.2 Separation

DBMC and bulk parcel post pieces

must be separated by zones when

presented unless either the correct

postage is affixed to each piece or the

mailing is prepared under 8.0. For

mailings prepared in sacks, pieces for

more than one zone may not be placed

in the same sack, and sacks must be

separated by zone when presented to

the USPS.

2.0 BOUND PRINTED MATTER

2.1 Basic Standards

There are no presort, sacking, or

labeling requirements for single-piece

rate bound printed matter. All bulk rate

bound printed matter must be prepared

under the standards in 2.5 and 2.6,

except for carrier route presort rate

bound printed matter, machinable

pieces, bedloaded bundles, and

palletized pieces and bundles subject to

3.0, 6.0, 7.0, and M045, respectively.

2.2 Separation

Mailpieces must be separated by

zones when presented unless either the

correct postage is affixed to each piece

or the mailing is prepared under 8.0.

Pieces for more than one zone may not

be placed in the same bundle or sack,

and bundles and sacks must be

separated by zone when presented.

2.3 Marking

Each piece claimed at single-piece

bound printed matter rates must be

marked ‘‘Bound Printed Matter.’’ Each

piece of bound printed matter claimed

at bulk bound printed matter rates must

be marked ‘‘Bound Printed Matter’’ and
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66681

‘‘Bulk Rate’’ or ‘‘Blk. Rt.’’ Pieces not

clearly marked as required are treated as

single-piece rate parcel post and subject

to additional postage as necessary.

2.4 Catalogs

In addition to marking under 2.3,

catalogs must be marked ‘‘CATALOG

RATE’’ or ‘‘CATALOG.’’ For this

standard, a ‘‘catalog’’ is bound printed

matter consisting entirely of advertising.

‘‘Advertising’’ includes all material for

the publication of which a valuable

consideration is paid, accepted, or

promised, which calls attention to

something for getting people to buy it,

seek it, sell it, or support it. Public

service advertisements for which no

consideration is paid are not advertising

for postal purposes. Advertising

includes:

a. Reading matter or other material,

for the publication of which an

advertising rate is charged.

b. Articles, items, and notices that are

reading matter inserted by a custom or

understanding that textual matter is to

be inserted for the advertiser or the

advertiser’’s products in the publication

where a display advertisement appears.

c. Material in a publication

advertising its own services or issues, or

any other business (or products or

services) of its publisher, whether

display advertising or editorial or

reading matter.

2.5 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: required at 10 pieces/20

pounds/1,000 cubic inches; smaller

volume permitted; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required at 10 pieces/20

pounds/1,000 cubic inches; smaller

volume permitted; use L002, Column A,

for Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. SCF: optional (10 pieces/20

pounds/1,000 cubic inches minimum;

smaller volume not permitted); use

L002, Column B, for Line 1.

e. ADC: optional (no minimum); use

L004 for Line 1.

f. Mixed ADC: required (no

minimum); for Line 1, use MXD

followed by the entry ADC facility city/

state/ZIP shown in L004.

2.6 Line 2

Line 2: STD 4C, FLATS or IRREG (as

applicable), and:

a. Mixed ADC sacks: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

3.0 CARRIER ROUTE BOUND

PRINTED MATTER

3.1 Preparation

Carrier route rate bound printed

matter must be prepared under the

standards in 3.5 through 3.8, unless

prepared as machinable pieces,

bedloaded bundles, or palletized under

6.0, 7.0, and M045, respectively.

3.2 Documentation

Documentation is subject to the

general standards in P012. At the time

a mailing is submitted for presort and

postage verification, the mailer must

submit a list of the number of qualifying

and residual pieces for each by 5-digit

ZIP Code and, within each, by carrier

route. After the first mailing, the

postmaster may authorize the mailer to

keep the records and submit them on

request. The mailer must keep these

records for 90 days after the mailing

date, or until any action pending on the

recalculation of postage is resolved to

the USPS’’s satisfaction.

3.3 Marking

Each piece claimed at carrier route

bulk bound printed matter rates must be

marked ‘‘Bound Printed Matter Blk. Rt.’’

and ‘‘Carrier Route Presort’’ or ‘‘CAR–

RT SORT.’’ In addition, catalogs must be

marked ‘‘CATALOG RATE’’ or

‘‘CATALOG.’’ Catalog is defined in 2.4.

Residual pieces in a carrier route bulk

bound printed matter mailing may have

the ‘‘Carrier Route Presort’’ or ‘‘CAR–RT

SORT’’ marking if the number of

residual pieces to any single 5-digit ZIP

Code area does not exceed 5% of the

total qualifying carrier route rate pieces

addressed to that 5-digit area. The

residual pieces must be separated from

the qualifying pieces when presented to

the USPS. Pieces not clearly marked as

required are treated as single-piece rate

parcel post and subject to additional

postage as necessary.

3.4 Package Preparation

‘‘Carrier route’’ includes city carrier

routes, rural routes, highway contract

routes, post office box sections, and

general delivery units. Packages must

meet the applicable basic standards in

M020.

3.5 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling: Carrier route; required (10

pieces/20 pounds/1,000 cubic inches

minimum, smaller packages not

permitted); facing slip required unless

the pieces in the package show a carrier

route information line.

3.6 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. Carrier route: optional (10 pieces/20

pounds/1,000 cubic inches minimum,

smaller volume not permitted); use 5-

digit destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes: required (no

minimum); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

3.7 Line 2

Line 2: STD 4C, FLTS or IRREG (as

applicable), and:

a. Carrier route sacks: route type and

number.

b. 5-digit carrier routes sacks:

CARRIER ROUTES.

3.8 Residual Pieces

Residual mail not presorted under 3.5

through 3.7 may be prepared in

packages of fewer than 10 pieces each

for individual carrier routes. Residual

pieces must be sacked under 2.0.

Residual pieces may be included in a

carrier route presort rate mailing with

the ‘‘Carrier Route Presort’’ or ‘‘CAR–RT

SORT’’ marking if postage is paid at the

applicable bulk bound printed matter

rate. These pieces must be separated

from the qualifying carrier route rate

pieces when presented to the USPS. The

number of residual pieces endorsed

‘‘Carrier Route Presort’’ or ‘‘CAR–RT

SORT’’ addressed to any single 5-digit

ZIP Code area must not exceed 5% of

the total qualifying presorted carrier

route pieces addressed to that 5-digit

area.

4.0 SPECIAL STANDARD MAIL

4.1 Basic Standards

There are no presort, sacking, or

labeling requirements for single-piece

Special Standard Mail. Presorted

Special Standard Mail matter must be

prepared subject to 4.3 through 4.5,

unless prepared as machinable pieces,

bedloaded bundles, or palletized,

subject to 6.0, 7.0, and M045,

respectively. Mailings of nonmachinable

(outside) pieces eligible for the presort

rates must be prepared to preserve the

required presort as instructed by the

postmaster of the office of mailing.

4.2 Marking

Each piece claimed at Special

Standard Mail single-piece rates must be

marked ‘‘Special Standard Mail.’’ Each

piece claimed at Presorted Special
66682 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

Standard Mail rates must be marked

‘‘Presorted Special Standard Mail.’’

Pieces not clearly marked as required

are treated as single-piece parcel post

and subject to additional postage as

necessary.

4.3 Sack or Bundle Preparation (5-

Digit Rate)

Sack or bundle size, presort sequence,

and labeling: 5-digit (only); required

(eight pieces/20 pounds/1,000 cubic

inches minimum, smaller volume not

permitted); 20-pound maximum for

bundles; no label required on bundles;

on sacks use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

4.4 Sack Preparation (BMC Rate)

Sack size, presort sequence, and

labeling: destination BMC (only);

required (four pieces/20 pounds/1,000

cubic inches minimum, smaller volume

not permitted); use L601 for Line 1.

4.5 Line 2

Line 2: STD 4C and processing

category. As required by the labeling

list, Line 2 processing code information

must be right-justified under the ZIP

Code on Line 1.

5.0 LIBRARY MAIL

5.1 Basic Standards

There are no presort, sacking, or

labeling requirements for single-piece

Library Mail, except that, if 1,000 or

more identical-weight Library Mail

pieces are mailed during a single day,

they must be presorted and sacked

under 2.0 unless prepared as

machinable parcels or palletized subject

to 6.0 or M045, respectively.

5.2 Marking

Each piece of Library Mail must be

marked ‘‘Library Rate’’ or ‘‘Library

Mail.’’ Pieces not clearly marked as

required are treated as single-piece

parcel post and subject to additional

postage as necessary.

6.0 MACHINABLE PARCELS

6.1 Basic Standards

All Standard Mail (B) machinable

parcels must be prepared in sacks under

6.2 unless palletized under M045.

Parcel post or bound printed matter

pieces must be separated by zones when

presented unless either the correct

postage is affixed to each piece or the

mailing is prepared under 8.0. Pieces for

more than one zone may not be placed

in the same bundle or sack, and bundles

and sacks must be separated by zone

when presented.

6.2 Sack Size, Presort, and Labeling

Sack size, presort sequence, and

labeling:

a. 5-digit: required (10 pieces/20

pounds/1,000 cubic inches minimum,

smaller volume not permitted); use 5-

digit ZIP Code destination of pieces for

Line 1, preceded for military mail by the

correct prefixes under M031.

b. ASF: allowed and required only if

DBMC rate is claimed for mail deposited

at ASF; 10 pieces/20 pounds/1,000

cubic inches minimum, smaller volume

not permitted; use L602 for Line 1.

c. Destination BMC: required (10

pieces/20 pounds/1,000 cubic inches

minimum, smaller volume not

permitted); use L601 (L602 if DBMC rate

claimed) for Line 1.

d. Mixed BMC: required (no

minimum); use L601 to show entry BMC

for Line 1.

6.3 Line 2

Line 2: STD 4C MACH and:

a. Mixed BMC sacks: MIXED BMC.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

7.0 BOUND PRINTED MATTER AS

BEDLOADED BUNDLES

7.1 Authorization

The RCSC manager serving the post

office where the mailing is to be made

may authorize preparation of bound

printed matter meeting the applicable

standards in 2.0 or 3.0 in bundles

outside mail sacks if this preparation

benefits the USPS. Generally,

authorization is approved only when

the number of bundles is not more than

the number of sacks that would

otherwise be used in a mailing. The

mailer or agent must submit an

application for each product that states

the name of the mailer, the frequency of

mailing, the post offices to which

shipments are to be made, and the

approximate numbers of copies and

bundles to be deposited at each office.

The RCSC manager rules on the

application and informs the applicant in

writing. If an authorization is approved,

the publisher or agent must be prepared

to provide information for future

mailings, similar to that required on the

original application, if requested by the

RCSC manager. Authorization is

approved for a specific period, not to

exceed 2 years. Authorizations to

bundle instead of sack can be revoked

when it is determined that the

preparation method no longer benefits

the USPS.

7.2 Separation

Unless prepared under 8.0, pieces for

more than one zone may not be placed

in the same package or bundle, and

packages and bundles must be separated

by zone when presented to the USPS.

7.3 Package Preparation

Packages must meet the applicable

basic standards in M020. Package size:

two-piece minimum, 20-pound

maximum. Presort sequence and

labeling of packages are subject to 2.0 or

3.0, as applicable for the rate claimed.

7.4 Bundle Preparation

Bundles must meet the applicable

basic standards in M020. Bundles must

be machinable by USPS sack-sorting

equipment, unless they consist of pieces

for entry and delivery in the same SCF

service area. Machinability can be

improved by cross-strapping and using

heavy-gauge shrinkwrap or stretchwrap

on each bundle. Bundles entered and

delivered in the same SCF service area

must be securely bound to withstand

normal handling without breakage or

injury to USPS employees or damage to

mechanized sorting systems. Binding

material must be applied at least once

around both the length and girth. Wire

and metal strapping are prohibited.

7.5 Bundle Size, Presort, and Labeling

Bundle size, presort sequence, and

labeling: For all presort levels: two

packages/20 pounds/1,000 cubic inches

minimum, 40 pounds maximum;

smaller bundles not permitted. Presort

sequence is same as sacks under 2.0 or

3.0, as applicable for the rate claimed.

Bundles other than carrier route and 5-

digit bundles must be labeled with

facing slips that have similar

information to that required for sack

labels. A facing slip is not required on

carrier route bundles. The 5-digit

bundles must contain pieces with the

correct optional endorsement line or

have a red Label D. Packages too large

to be placed in a bundle do not require

a facing slip. Optional endorsement

lines may be used instead of facing slips

on other than mixed states bundles,

subject to M013.

8.0 COMMINGLING ZONES

Zone-rated Standard Mail pieces need

not be separated by zones when

presented other than as individual

pieces or with full correct postage

affixed to each piece, subject to the

applicable conditions of this section.

Nonidentical-weight pieces not bearing

the full correct postage may not be

commingled unless authorized by the

RCSC manager serving the office of

mailing. These provisions also apply to
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66683

bundles of bound printed matter

regardless of whether the bundles are

bedloaded, sacked, or palletized. The

mail must be prepared and documented:

a. Under P710 or P730; or

b. Under all these conditions:

(1) A unique number is assigned to

each sack/pallet in the mailing and

printed on a separate line at the top of

the sack/pallet label (above the Line 1

information on bound printed matter).

(2) For bound printed matter and all

palletized mailings, Line 2 of the sack/

pallet label for each sack/pallet that

contains mail for more than one zone

also shows ‘‘MIXED ZONES’’ and the

zone numbers (e.g., ‘‘STD FLATS

MIXED ZONES 2 & 3’’).

(3) A detailed list accompanies each

mailing or mailing segment, sequenced

numerically by the numbers assigned to

sacks/pallets in the mailing, that shows

the post office where the mail is to be

entered (entry post office), a unique

identifier for the mailing or mailing

segment that also appears on the

corresponding mailing statement(s), the

name and address of the mailer, the

permit number (if applicable), the date

of mailing, individual line entries for

each sack/pallet, and the total number

of pieces to each zone and in the entire

mailing or mailing segment. Line entries

for sacks/pallets containing mail for

only one zone must show the sack/

pallet number, the level of sortation, the

zone for which the mail is destined, and

the total number of pieces for the sack/

pallet. Entries for sacks/pallets

containing mail for more than one zone

must also show (by zone) the number of

pieces to each 3-digit ZIP Code area and

the total number of pieces for that zone

for the sack/pallet. Mailings are not

accepted if there are discrepancies

between the information in the detailed

listing or on the mailing statement and

the results of USPS random verification

of piece counts and postage.

M690 Nonprofit Standard Mail

M692 Basic and 3/5 Presort

[Text of current M302, except in 1.2 and

3.3, replace ‘‘bulk third-class’’ with

‘‘Nonprofit Standard Mail (A)’’; delete

1.3 and 1.5, and renumber succeeding

sections accordingly; in renumbered

1.8a and 2.1, delete ‘‘or optional city,’’

delete 2.2c, 2.3c, 3.4b, 3.5b, and 3.6b

and reletter succeeding sections

accordingly; in 3.6, replace ‘‘3C’’ with

‘‘STD’’; and in 3.6a and 3.6b, insert

‘‘3C’’ before ‘‘MACH.’’ In 2.2f, 2.3f, 3.4e,

3.5e, and 3.5g, replace ‘‘SDC’’ with

‘‘ADC’’; in 2.3f, replace ‘‘orange Label

S’’ with ‘‘pink Label A’’; in 3.5g, replace

‘‘L706 or L707, as applicable’’ with ‘‘use

L004’’; delete current 3.6d, redesignate

3.6e and 3.6f as 3.6d and 3.6e,

respectively, and revise redesignated

3.6d to read ‘‘Mixed ADC sacks: WKG’’;

delete 2.2g, 2.3g, 3.4f, and 3.5f;

redesignate 2.2h, 2.3h, 3.4g, and 3.5g as

2.2g, 2.3g, 3.4f, and 3.5f, respectively,

and replace ‘‘Mixed states’’ with ‘‘Mixed

ADC.’’]

M693 Carrier Route

[Text of current M303, except in 1.2 and

3.3, replace ‘‘bulk third-class’’ with

‘‘Nonprofit Standard Mail (A)’’; delete

1.3 and 1.5, and renumber succeeding

sections accordingly; and in 3.6, replace

‘‘3C’’ with ‘‘STD.’’]

M695 Machinable Parcels

[Text of current M305, except in 2.4,

replace ‘‘3C’’ with ‘‘STD 3C.’’]

M696 Irregular Parcels

[Text of current M306, except in 1.5,

replace ‘‘bulk third-class’’ with

‘‘Nonprofit Standard Mail (A)’’; and in

3.0, replace ‘‘3C’’ with ‘‘STD 3C.’’]

M697 Bedloaded Bundles

[Text of current M307, except in 1.2,

replace ‘‘third-class mail’’ with

‘‘Nonprofit Standard Mail (A).’’]

M698 Combined Mailings of Nonprofit

Standard Mail (A) and Standard Mail

(B) Machinable Parcels

[Text of current M073. In 1.1, replace

‘‘third-class and fourth-class’’ with

‘‘Nonprofit Standard Mail (A) and

Standard Mail (B)’’; in 1.2, replace

‘‘third- or fourth-class’’ with ‘‘Nonprofit

Standard Mail (A) or Standard Mail (B)’’

and delete ‘‘class or’’; in 1.6 and 1.7,

replace ‘‘class’’ with ‘‘category’’; in 1.7,

replace ‘‘third- and fourth-class’’ with

‘‘Nonprofit Standard Mail (A) and

Standard Mail (B) pieces’’; in 1.7,

replace ‘‘third- and fourth-class’’ with

‘‘Nonprofit Standard Mail (A) and

Standard Mail (B)’’; and in 3.3, replace

‘‘3C/4C’’ with ‘‘STD 3C/4C.’’]

M800 Automation-Compatible Mail

[Move current M810–M820 contents to

M890 and renumber and revise as

shown below to apply only to Preferred

Periodicals and Nonprofit Standard

Mail (A). For Automation First-Class

and Standard Mail (A) and Barcoded

rate Regular and automation-compatible

Publications Service Periodicals, add

new M810 (replacing M814 through

M816) and M820 (replacing M823), as

follows; (M812, M813, M817, M818,

M819, M825, and M827 are deleted for

these subclasses).]

M810 Letter-Size Mail—(Except

Preferred Periodicals and Nonprofit

Standard Mail)

1.0 BASIC STANDARDS

1.1 Standards

Letter-size Automation First-Class,

Barcoded rate Regular and automationcompatible Publications Service

Periodicals, and Automation Standard

Mail must be prepared under M810,

subject to the basic eligibility standards

applicable to the rate claimed. Presort,

labeling, and package and tray

preparation are subject to the general

standards in M010 through M030. All

pieces in a mailing must be in the same

processing category and must be

presorted together to the finest extent

required. Firm packages may not be

included in mailings prepared under

M810.

1.2 Marking

First-Class pieces must be marked

‘‘First-Class.’’ Standard Mail must be

marked either ‘‘STD’’ or ‘‘Standard.’’ In

addition, Carrier Route rate pieces must

be marked ‘‘AUTOCR,’’ and pieces at

other rates must be marked ‘‘AUTO.’’

No markings are required on Periodicals

pieces.

1.3 Grouping, Packaging, Labeling

Grouping, packaging, and labeling are

not generally required, with these

exceptions:

a. Pieces must be packaged to

preserve orientation in overflow and

less-than-full trays and in any mailing

consisting entirely of card-size pieces.

b. Pieces must be grouped as specified

below in 5-digit carrier routes, AADC,

and mixed AADC trays, and for Regular

Periodicals.

c. Package labels are required only for

Regular Periodicals.

1.4 Heavy Letter Mail

Each tray of heavy letter mail (as

defined in C810) must be identified by

a flag (similar to a separator card)

clearly marked ‘‘HEAVY LETTER

MAIL’’ and placed in front of the

contents of the tray. Each pallet, general

purpose mail container, or other

equipment used to transport trays of

heavy letter mail must be labeled

‘‘HEAVY LETTER MAIL,’’ in letters not

less than 1/2 inch high on white or

light-colored stock not smaller than 8 by

11 inches, on two adjacent sides of the

pallet or other equipment.

1.5 Mixed Rates

A single mailing (e.g., Automation

First-Class) may include pieces

prepared at all available rate levels (e.g.,

Carrier Route, 5–Digit, 3–Digit, and
66684 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

Basic); all may be reported on the same

mailing statement and documentation.

No other combinations are permitted.

1.6 Availability of Carrier Route Rates

Preparation of mail to qualify for

Automation Carrier Route rates is

optional for Automation First-Class and

Standard Mail (A) and Publications

Service pieces, subject to the availability

limitations in E140, E232, and E641.

1.7 Scheme Sortation—Availability

and Use

Scheme sortation is an option

available for Automation First-Class,

Automation Standard Mail (A), and

Publications Service pieces only, and

only for those ZIP Code prefix groups

listed in L003. Scheme sortation may be

performed for only selected available

destinations and may include only

pieces that could not be prepared in full

3-digit trays. Scheme trays are

considered 3-digit separations for rate

eligibility, subject to a single minimum

volume and the applicable standards for

the rate claimed.

2.0 PREPARATION—FIRST-CLASS

AND STANDARD MAIL (A)

2.1 Packaging/Grouping

No packaging is required in full trays.

Grouping is required for Carrier Route

rate pieces and pieces in AADC and

mixed AADC trays.

2.2 Grouping—Carrier Route Pieces

Grouping size, presort sequence, and

labeling: carrier route (only); required

(10-piece minimum; fewer not

permitted); use OEL or carrier route

information line. Group pieces by

carrier route (using separator cards

under M020, not packaging) in full 5-

digit carrier routes trays.

2.3 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. Carrier route: optional, but required

for rate eligibility (full trays); no

overflow; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes (carrier route

pieces only): optional, but required for

rate eligibility (no minimum); overflow

allowed; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: optional, but required for

rate eligibility (150-piece minimum);

overflow allowed; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit/scheme: required (150-piece

minimum); overflow allowed; for Line

1, use L002, Column A (3-digit trays), or

L003 (scheme trays), as appropriate.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. AADC: required (150-piece

minimum); overflow allowed; group

pieces by 3-digit ZIP Code prefix; use

L804 for Line 1.

g. Mixed AADC: required (no

minimum); group by AADC and, within

each, by 3-digit ZIP Code prefix; for

Line 1, for First-Class Mail, use MXD,

followed by the entry 3-digit facility

city/state/ZIP shown in L002, Column A

(use lowest ZIP in range) or, for

Standard Mail, use L805 (mail entered

by the mailer at an ASF or BMC) or

L806, as appropriate.

2.4 Line 2

Line 2: FCM or STD (as appropriate),

LTRS BC, and:

a. Carrier route trays: route type and

number.

b. 5-digit carrier routes trays: CR-RTS.

c. For scheme trays: SCHEME.

d. For mixed AADC trays: WKG.

3.0 PREPARATION—PUBLICATIONS

SERVICE

3.1 Packaging/Grouping

No packaging is required in full trays.

Grouping is required for Carrier Route

rate pieces and pieces in AADC and

mixed AADC trays.

3.2 Grouping—Carrier Route Pieces

Grouping size, presort sequence, and

labeling: carrier route (only); required

(six-piece minimum; fewer not

permitted); no label required. Group

pieces by carrier route (using separator

cards under M020, not packaging) in

full 5-digit carrier routes trays.

3.3 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. Carrier route: optional, but required

for rate eligibility (full trays); no

overflow; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 5-digit carrier routes: optional, but

required for rate eligibility (no

minimum); overflow allowed; use 5-

digit ZIP Code destination of pieces for

Line 1, preceded for military mail by the

correct prefixes under M031.

c. 5-digit: optional, but required for

rate eligibility (150-piece minimum);

overflow allowed; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit/scheme: required (150-piece

minimum); overflow allowed; for Line

1, use L002, Column A (3-digit trays), or

L003 (scheme trays), as appropriate.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. AADC: required (150-piece

minimum); overflow allowed; group

pieces by 3-digit ZIP Code prefix; use

L804 for Line 1.

g. Mixed AADC: required (no

minimum); group pieces by AADC; for

Line 1, use L805 (mail entered by the

mailer at an ASF or BMC) or L806, as

appropriate.

3.4 Line 2

Line 2: PERIOD or NEWS (as

appropriate), LTRS BC, and:

a. Carrier route trays: route type and

number.

b. 5-digit carrier routes trays: CR–RTS.

c. For scheme trays: SCHEME.

d. For mixed AADC trays: WKG.

4.0 PREPARATION—REGULAR

PERIODICALS

4.1 Packaging/Grouping, Presort, and

Labeling

Pieces are grouped with separator

cards but not packaged in full trays.

Grouping size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); red

Label D or optional endorsement line

(OEL).

b. 3-digit: required (50-piece

minimum, fewer not permitted); green

Label 3 or OEL.

c. AADC: required (10-piece

minimum, fewer not permitted); pink

Label A or OEL.

d. Mixed AADC: required (no

minimum); tan Label MS or OEL.

4.2 Tray Size, Presort, and Labeling

Tray size, presort sequence, and

labeling:

a. 5-digit: required (full trays); no

overflow; use 5-digit ZIP Code

destination of pieces for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (full trays); no

overflow; for Line 1, use L002, Column

A (3-digit trays), or L003 (scheme trays),

as appropriate.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. AADC: required (full trays); no

overflow; use L804 for Line 1.

e. Mixed AADC: required (no

minimum); for Line 1, use L805 (mail

entered by the mailer at an ASF or BMC)

or L806, as appropriate.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66685

4.3 Line 2

Line 2: PERIOD or NEWS (as

appropriate), LTRS BC, and, on mixed

AADC trays: WKG.

5.0 DOCUMENTATION

The mailer must be prepared to

support information on mailing

statements with documentation meeting

the standards in P012 that describes the

mailing in sufficient detail to allow

verification of the accompanying

mailing’’s compliance with applicable

preparation and eligibility standards.

Combined mailings of Periodicals

publications must also be documented

under M210. A complete, signed

mailing statement, using the correct

USPS form or an approved facsimile,

must accompany each mailing.

M820 Flat-Size Mail—(Except

Preferred Periodicals and Nonprofit

Standard Mail)

1.0 BASIC STANDARDS

1.1 Standards

Flat-size Automation First-Class,

Barcoded rate Regular and automationcompatible Publications Service

Periodicals, and Automation Standard

Mail must be prepared under M820,

subject to the basic eligibility standards

applicable to the rate claimed. Presort,

labeling, and package, sack, and tray

preparation are subject to the general

standards in M010 through M030. All

pieces in a mailing must be in the same

processing category and must be

presorted together to the finest extent

required.

1.2 Packages

All pieces must be prepared in

packages. When the pieces for a presort

destination must be prepared in more

than one package or in packages each

with fewer pieces than the minimum

required (because of size or total

number of pieces), rate eligibility is not

affected if the total number of pieces for

that destination exceeds the applicable

minimum. Firm packages are allowed

only in Publications Service mailings.

1.3 Standard Mail (A)

Pieces of Standard Mail (A) that, by

size, could qualify for an Automation

rate as either a letter or a flat, and that

are prepared as palletized flats at

Automation rates for flats or at

Enhanced Carrier Route rates, may be

prepared as palletized flats at Regular

nonletter rates as well if the number of

Regular nonletter rate pieces does not

exceed 10% of the total number of

pieces in the entire mailing job

(regardless of rate).

1.4 Marking

First-Class pieces must be marked

’’First-Class’’ and ’’AUTO.’’ Standard

Mail must be marked either ’’STD’’ or

’’Standard’’ and ’’AUTO.’’ No markings

are required on Periodicals pieces.

1.5 Other Rates

A single mailing (e.g., Automation

First-Class) may include pieces

prepared at all available rate levels (e.g.,

3/5 and Basic); all may be reported on

the same mailing statement and

documentation. Other combinations are

permitted only when allowed by

standard.

2.0 PREPARATION—FIRST-CLASS

MAIL

2.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); use red

Label D or optional endorsement line

(OEL).

b. 3-digit: required (10-piece

minimum, fewer not permitted); use

green Label 3 or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); use pink Label A

or OEL.

d. Mixed ADC: required (no

minimum); use tan Label MS or OEL.

2.2 Tray Preparation

Tray size, presort sequence, and

labeling:

a. 5-digit: required full trays, no

overflow; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required full trays, no

overflow; use L002, Column A, for Line

1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required full trays, no

overflow; use L004 for Line 1.

e. Mixed ADC: required (no

minimum); use MXD, followed by the

entry 3-digit facility city/state/ZIP

shown in L002, Column A (use lowest

ZIP in range) for Line 1.

2.3 Line 2

Line 2: FCM FLTS BC, and:

a. Mixed ADC sacks: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

3.0 PREPARATION—REGULAR

PERIODICALS

3.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (six-piece

minimum, fewer not permitted); use red

Label D or optional endorsement line

(OEL).

b. 3-digit: required (six-piece

minimum, fewer not permitted); use

green Label 3 or OEL.

c. ADC: required (six-piece minimum,

fewer not permitted); use pink Label A

or OEL.

d. Mixed ADC: required (no

minimum); use tan Label MS or OEL.

3.2 Sack Preparation

Sack size, presort sequence, and

labeling:

a. 5-digit: required at 24 pieces,

optional with one six-piece package

minimum; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum; use L002, Column A, for Line

1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required at 24 pieces,

optional with one six-piece package

minimum; use L004 for Line 1.

e. Mixed ADC: required (no

minimum); for Line 1, use L805 (mail

entered by the mailer at an ASF or BMC)

or use MXD, followed by the entry ADC

facility city/state/ZIP shown in L004, as

appropriate.

3.3 Line 2

Line 2: PERIOD or NEWS (as

appropriate), FLTS BC, and:

a. Mixed ADC sacks: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

4.0 PREPARATION—PUBLICATIONS

SERVICE

4.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. Firm: optional (two-piece

minimum); use blue Label F or optional

endorsement line (OEL).

b. Carrier Route: optional (six-piece

minimum, fewer not permitted); use

purple Label CR or OEL.

c. 5-digit: required (six-piece

minimum, fewer not permitted); use red

Label D or OEL.
66686 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

d. 3-digit: required (six-piece

minimum, fewer not permitted); use

green Label 3 or OEL.

e. ADC: required (six-piece minimum,

fewer not permitted); use pink Label A

or OEL.

f. Mixed ADC: required (no

minimum); use tan Label MS or OEL.

4.2 Sack Preparation

Sack size, presort sequence, and

labeling:

a. Carrier route: required for rate

eligibility at 24 pieces, optional with

one six-piece package minimum; use 5-

digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. 5-digit carrier routes: (carrier route

packages only) required for rate

eligibility (no minimum); use 5-digit ZIP

Code destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

c. 5-digit: required at 24 pieces,

optional with one six-piece package

minimum; use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

d. 3-digit: required at 24 pieces,

optional with one six-piece package

minimum; use L002, Column A, for Line

1.

e. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

f. ADC: required at 24 pieces, optional

with one six-piece package minimum;

use L004 for Line 1.

g. Mixed ADC: required (no

minimum); for Line 1, use L805 (mail

entered by the mailer at an ASF or BMC)

or use MXD, followed by the entry ADC

facility city/state/ZIP shown in L004, as

appropriate.

4.3 Line 2

Line 2: PERIOD or NEWS (as

appropriate), FLTS, and:

a. Carrier Route sacks: LOT (or WSH

or WSS if applicable), route type and

number.

b. 5-digit carrier routes sacks: CR-RTS.

c. 5-digit, 3-digit, and ADC sacks: BC.

d. Mixed ADC sacks: BC WKG.

e. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

5.0 PREPARATION—STANDARD

MAIL

5.1 Package Size, Presort, and

Labeling

Package size, presort sequence, and

labeling:

a. 5-digit: required (10-piece

minimum, fewer not permitted); use red

Label D or optional endorsement line

(OEL).

b. 3-digit: required (10-piece

minimum, fewer not permitted); use

green Label 3 or OEL.

c. ADC: required (10-piece minimum,

fewer not permitted); use pink Label A

or OEL.

d. Mixed ADC: required (no

minimum); use tan Label MS or OEL.

5.2 When to Sack

A sack must be prepared when the

quantity of mail for a required presort

destination reaches either 125 pieces or

15 pounds of pieces, whichever occurs

first, subject to these conditions:

a. For identical-weight pieces, a

single-piece weight of 1.92 ounces (0.12

pound) results in 125 pieces weighing

15 pounds. Identical-weight pieces

weighing 1.92 ounces (0.12 pound) or

less must be prepared using the 125-

piece minimum, those that weigh more

must be prepared using the 15-pound

minimum.

b. For nonidentical-weight pieces,

mailers must either use the minimum

that applies to the average piece weight

for the entire mailing (divide the net

weight of the mailing by the number of

pieces; the resulting average singlepiece weight determines whether the

125-piece or 15-pound minimum

applies) or sack by the actual piece

count or mail weight for each sack, if

documentation can be provided with

the mailing that shows (specifically for

each sack) the number of pieces and

their total weight.

c. Mailers must note on the

accompanying mailing statement

whether they applied the 125-piece

(‘‘PCS’’) or 15-pound (‘‘WT’’) threshold

or if the method in 5.2b (‘‘BOTH’’) was

used.

5.3 Sack Preparation

Sack size, presort sequence, and

labeling:

a. 5-digit: required (125-piece/15-

pound minimum, smaller volume

prohibited); use 5-digit ZIP Code

destination of packages for Line 1,

preceded for military mail by the correct

prefixes under M031.

b. 3-digit: required (125-piece/15-

pound minimum, smaller volume

prohibited); use L002, Column A, for

Line 1.

c. Entry SCF 3-digit(s): required (no

minimum); use L002, Column A, for

Line 1.

d. ADC: required (125-piece/15-pound

minimum, smaller volume prohibited);

use L004 for Line 1.

e. Mixed ADC: required (no

minimum); for Line 1, use L805 (mail

entered by the mailer at an ASF or BMC)

or use MXD, followed by the entry ADC

facility city/state/ZIP shown in L004, as

appropriate.

5.4 Line 2

Line 2: STD FLTS BC and:

a. Mixed ADC sacks: WKG.

b. As required by the applicable

labeling list, Line 2 processing code

information must be right-justified

under the ZIP Code on Line 1.

6.0 DOCUMENTATION

The mailer must be prepared to

support information on mailing

statements with documentation meeting

the standards in P012 that describes the

mailing in sufficient detail to allow

verification of the accompanying

mailing’s compliance with applicable

preparation and eligibility standards.

Combined mailings of Periodicals

publications must also be documented

under M210. A complete, signed

mailing statement, using the correct

USPS form or an approved facsimile,

must accompany each mailing.

M890 Preferred Periodicals and

Nonprofit Standard Mail

M891 ZIP+4 Presort—Tray-Based LetterSize Mailings

[Text of current M812, revised to apply

only to Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Preferred Periodicals and Nonprofit

Standard Mail claimed at a ZIP+4

presort rate must be prepared as a traybased mailing under 1.2 through 1.7,

2.0, 4.0, and 5.0, or as a package-based

mailing under M892. Grouping,

packaging, labeling, and traying are

subject to M010 through M030.

1.2 Automated Sites

Mailings consisting entirely of pieces

for the 3-digit areas listed in L801

(‘‘automated sites’’) may be prepared

under 3.0 rather than 2.0. Pieces for

other ZIP Code areas must be prepared

in a separate mailing.

1.3 Grouping

Grouping is required for pieces for the

same 3-digit ZIP Code prefix in SCF

trays and for pieces for the same AADC

area in working trays. Grouping by ZIP

Code is not required in 5-digit, city, or

3-digit trays.

1.4 Packaging

Packaging is required:

a. For mailings consisting entirely of

pieces that qualify by size for First-Class
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66687

card rates, regardless of the actual rate

claimed or class of mail. Package labels

are required in less-than-full trays.

b. For mail in overflow AADC trays,

in mixed AADC trays, and in a lessthan-full working tray. Appropriate

package labels are required in these

trays.

1.5 No Packaging

Packaging may not be used for larger

than card-size pieces, except that:

a. Mail in overflow trays must be

packaged and labeled correctly as for

the corresponding trays (mail in a lessthan-full tray for the entry SCF must be

sorted and labeled as 3-digit packages).

b. Mail in AADC trays may be

packaged, and mail in mixed AADC

trays must be packaged into AADC

packages.

1.6 Marking

Standard Mail must be marked

‘‘Nonprofit Organization’’ or the

authorized abbreviation and may be

marked ‘‘ZIP+4’’ or ‘‘5-digit ZIP+4’’ (as

appropriate). No marking is required on

Periodicals.

1.7 Carrier Route

ZIP+4 rate mail and carrier route

presort (or walk-sequence) rate mail

may not be included in the same

mailing or reported on the same mailing

statement.

* * * * *

[In 2.2b and 2.3, replace ‘‘second-class’’

with ‘‘Periodicals’’; no other change to

2.0 or 3.0. Revise succeeding sections as

follows:]

4.0 RESIDUAL MAIL

Pieces remaining after packages and

trays are prepared under 2.0 or 3.0 are

residual (nonqualifying) mail. Residual

Periodicals or Standard Mail must be

prepared as follows:

a. All pieces must be sorted by AADC

area using L804 (or, for automated site

mailings, L803).

b. Quantities of 10 or more pieces for

an AADC area must be prepared as an

AADC package (or, if possible, a full

AADC tray). Packaging is not required

in full AADC trays. AADC packages of

fewer than 10 pieces are not permitted.

c. All AADC packages must be trayed

in AADC or mixed AADC trays. Pieces

remaining after preparing full AADC

trays and AADC packages must be

placed in separate working trays.

d. Pieces in less-than-full AADC

overflow trays and in all mixed AADC

trays must be packaged and labeled as

AADC packages using a pink Label A or

OEL. Separator cards are not permitted.

e. Pieces in working trays must be

grouped by AADC area. Pieces in a lessthan-full working tray must be prepared

in working packages up to 6 inches

thick making as few packages as

possible without regard to AADC

breaks. Separator cards are not

permitted. Label packages in less-thanfull working trays with either a facing

slip marked ‘‘WORKING’’ or ‘‘WKG’’ or

the optional endorsement line

‘‘WORKING’’.

f. A piece count listing must be

provided for all residual pieces that

shows by tray level and AADC area

(listed by numeric AADC code from the

labeling list in L804 or, for automated

site mailings, L803) the number of

pieces eligible for each rate and the

number of pieces with and without a

ZIP+4 code.

g. Tray size:

(1) AADC: required full trays; one

less-than-full overflow tray permitted

per destination per mailing.

(2) Mixed AADC: required full trays;

one less-than-full tray permitted.

(3) Working: required full trays; one

less-than-full tray permitted.

h. Residual presort sequence and Line

1 labeling:

(1) AADC (required); use L804 (or, for

automated site mailings, L803) for Line

1.

(2) Mixed AADC (required); for Line

1 use MXD, followed by the applicable

entry SCF name, state, and SCF code

from L002, Column A (facilities

identified with three bullets), or Column

B, except use L805 for mail entered by

the mailer at an ASF or BMC.

(3) Working (required); for Line 1 use

MXD, followed by the applicable entry

SCF name, state, and ZIP Code from

L002, Column A (facilities identified

with three bullets), or Column B, except

use L805 for mail entered by the mailer

at an ASF or BMC.

i. For Line 2: class (PERIOD or NEWS

(as applicable), or STD), followed by:

(1) For AADC trays: AADC ZIP+4

PRESORT.

(2) For mixed AADC trays: ZIP+4

PRESORT PKGS.

(3) For working trays: ZIP+4

WORKING or ZIP+4 WKG.

5.0 DOCUMENTATION

5.1 Mailing Statement

A complete, signed mailing statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing. The endorsement ‘‘M891’’

must be placed at the top and, as

appropriate, ‘‘Automated Site’’ (if

prepared under 3.0).

* * * * *

5.4 Standards

Documentation must include residual

pieces and meet the basic standards in

P012 and those below. Abbreviated

documentation may be provided under

M896. Combined mailings of Periodicals

publications must also be documented

under M210.

* * * * *

5.6 ZIP Code Option

Under the ZIP Code option,

individual entries for each type of tray

destination must be listed sequentially

by ZIP Code: by 5-digit ZIP Code for 5-

digit trays; by lowest assigned 5-digit

ZIP Code for city trays (Periodicals

only); by 3-digit ZIP Code for 3-digit and

SCF trays; by the 3-digit AADC code

(preceded by ‘‘AADC’’) in L804 (or L803

for automated sites) for AADC, mixed

AADC, and working trays. Volume in

overflow trays must be included in the

corresponding entry even though there

is a list of overflow trays.

5.7 Tray Label Option

Under the tray label option,

individual entries for each tray must be

listed sequentially by the unique tray

number on each label or by Line 1 on

the label. The contents of each overflow

tray is reported as an individual entry

even though there is a list of overflow

trays. Each tray entry must be

subdivided as needed to report volume

sequentially by ZIP Code in the tray: by

5-digit ZIP Code for 5-digit trays; by

lowest assigned 5-digit ZIP Code for city

trays (Periodicals only); by 3-digit ZIP

Code for 3-digit and SCF trays; by the

3-digit AADC code (preceded by

‘‘AADC’’) in L804 (or L803 for

automated sites) for AADC, mixed

AADC, and working trays.

5.8 Line Entries

Under either option, each entry must

report ZIP+4 coded (including delivery

point barcoded) and uncoded pieces by

each rate for which specific numbers of

pieces are eligible, and a cumulative

total for the segment through that entry.

As applicable, data on each line must be

broken down further:

a. In Periodicals mailings, to

separately report in-county and outsidecounty pieces, and Level G/J1 and Level

H/J3 rates.

b. In Standard Mail, to separately

report pieces at each destination entry

rate.

5.9 Subtotals and Summaries

Each column of data must be

subtotaled at the end of each segment of

the report and a summary must list data

for the entire mailing, including the

residual. The summary must include:

a. The number of pieces with a ZIP+4

code or delivery point barcode, the

number without, the total number of
66688 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

pieces in the mailing, and the

percentage with ZIP+4 codes or delivery

point barcodes.

b. Each rate (or weight increment,

combination of rate and discount, or

other variable in 5.8), the number of

pieces at each rate, the total postage at

each rate, and the total postage for the

mailing. (For Periodicals mailings,

postage rates and computed totals may

be omitted.)

c. A list of overflow trays.

d. For postage-affixed mailings,

further detail must be added as needed

to account for the value of postage

affixed, if less than the applicable

amount, and the net due, to yield the

correct total postage.

M892 ZIP+4 Presort—Package-Based

Letter-Size Mailings

[Text of current M813, revised to apply

only to Barcoded Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Preferred Periodicals and Nonprofit

Standard Mail claimed at a ZIP+4

presort rate must be prepared as a

package-based mailing under 2.0, 3.0,

5.0, and 6.0, or as a tray-based mailing

under M891. Grouping, packaging,

labeling, and traying are subject to M010

through M030.

1.2 Automated Sites

Mailings consisting entirely of pieces

for the 3-digit areas listed in L801

(‘‘automated sites’’) may be prepared

under 4.0 rather than 3.0. Pieces of

Periodicals or Standard Mail for other

ZIP Code areas must be prepared in a

separate mailing.

* * * * *

1.4 No Packaging

Packages or separator cards are not

required for larger than card-size pieces

in full 5-digit trays, full AADC trays if

the contents are only residual AADC

packages, and full working trays under

4.2 and 4.3.

* * * * *

1.6 Marking

Standard Mail must be marked

‘‘Nonprofit Organization’’ or the

authorized abbreviation, and may be

marked ‘‘ZIP+4’’ or ’’5-digit ZIP+4’’ (as

appropriate). No marking is required on

Periodicals.

* * * * *

[In 2.1b, 2.2b, 3.2b, 3.3b, and 3.4b,

replace ‘‘second-class’’ with

‘‘Periodicals’’; no other change to 2.0,

3.0, or 4.0.]

5.0 RESIDUAL MAIL

5.1 Definition

Pieces remaining after packages and

trays are prepared under 2.0 through 4.0

are residual (nonqualifying) mail.

Residual Periodicals and Standard Mail

must be prepared under an option in 5.2

and 5.3. Residual mail from automated

site mailings under 4.0 is subject to

specific instructions where applicable.

All residual mail must be presented

under 5.6.

5.2 Options

Residual Periodicals and Standard

Mail must be prepared under one of

these options and in accordance with

5.3.

a. Separate AADC Preparation.

Residual mail is trayed separately from

qualifying mail. Groups of 10 or more

residual pieces to an AADC area in L804

(or L803 or automated site preparation)

are placed in AADC trays and mixed

AADC trays. AADC trays are required if

there are enough pieces to fill a tray, but

less-than-full AADC trays are permitted.

Residual pieces in mixed AADC trays

and in less-than-full AADC trays must

be prepared and labeled as AADC

packages. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 5.3.

b. Intermixed SCF/AADC Preparation.

Some residual mail is trayed with

qualifying mail. Groups of 10 or more

residual pieces to the same AADC area

in L804 (or L803 for automated site

preparation) are packaged by AADC and

placed in AADC trays (with qualifying

mail) and in mixed AADC trays. AADC

trays are required if there are enough

pieces to fill a tray, but less-than-full

AADC trays are permitted. AADC trays

containing only residual AADC

packages are allowed. Mixed AADC

trays are limited to residual AADC

packages. At the mailer’s option,

residual mail may be packaged by 3-

digit ZIP Code and placed in SCF trays

(remaining pieces sorted by AADC). A

less-than-full tray for the entry SCF

containing only residual packages is

allowed. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 5.3.

5.3 Required Preparation

Subject to 5.1 and 5.2, residual mail

must be prepared as follows:

* * * * *

d. Tray presort sequence and Line 1

labeling:

[In 5.3d(4) and 5.3d(5), delete ‘‘secondand third-class.’’]

e. Line 2: class (PERIOD or NEWS (as

applicable), or STD), followed by:

(1) On 3-digit and SCF trays (option

5.2b only): ZIP+4 PRESORT.

(2) On AADC trays: AADC ZIP+4

PRESORT.

(3) On mixed AADC trays: ZIP+4

PRESORT PKGS.

(4) On working trays: ZIP+4

WORKING or ZIP+4 WKG.

[Delete current 5.4 and 5.5; renumber

current 5.6 as 5.4, no change in text.]

6.0 DOCUMENTATION

6.1 Mailing Statement

A complete, signed mailing statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing. The endorsement ‘‘M892’’

must be placed at the top and, as

appropriate, ‘‘Automated Site’’ (if

prepared under 4.0).

6.2 When Not Required

Documentation under 6.3 through 6.8

is not required if each piece in the

mailing is correctly ZIP+4 coded or

delivery point barcoded and either has

postage affixed at the exact rate for

which it qualifies; or is of identical

weight, the pieces in each tray are

subject to the same rate, and the trays

for each rate are segregated when

presented to the USPS.

6.3 Standards

Documentation must include residual

pieces and must meet the basic

standards in P012 and those below.

Abbreviated documentation may be

provided under M896. Combined

mailings of Periodicals publications

must be documented under M210.

6.4 Segmentation, Labeling

Documentation must be segmented

and labeled by qualification tier (e.g.,

presort and residual). Each tier must be

further segmented by type of package/

grouping (5-digit, 3-digit, AADC, as

applicable) under 6.5, or have all

represented 3- and 5-digit ZIP Codes

(and AADC codes for residual mail

under 5.2 and 5.3) reported in a

continuous sequential list under 6.6

within each tier listing. Under either

option, data must be presented as

shown in 6.7 and 6.8.

6.5 Type of Package Option

If the report is segmented by type of

package, for each type, individual

entries for each destination must be

ordered sequentially by ZIP Code: by 5-

digit ZIP Code for 5-digit packages, by

lowest assigned 5-digit ZIP Code for city

packages (Periodicals only), by 3-digit

ZIP Code for 3-digit packages, and, for
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66689

AADC packages and AADC groups (in

working trays) under 5.2 and 5.3, by the

applicable 3-digit AADC code in L803

(for automated site mailings) or L804

(AADC entries must be preceded by

‘‘AADC’’).

6.6 Sequential List Option

If the report is a sequential list,

individual entries for each destination

must be ordered sequentially by ZIP

Code within each tier, regardless of

package type: by 5-digit ZIP Code for 5-

digit packages, by lowest assigned 5-

digit ZIP Code for city packages

(Periodicals only), by 3-digit ZIP Code

for 3-digit packages, and, for AADC

packages and AADC groups (in working

trays) under 5.2 and 5.3, by the

applicable 3-digit AADC code in L803

(for automated site mailings) or L804.

AADC entries must be preceded by the

prefix ‘‘AADC.’’ For Periodicals only,

listings for 5-digit, city, and 3-digit

packages must be preceded by the

prefixes 5DG, CTY, and 3DG,

respectively.

6.7 Line Entries

Under either option, each entry must

separately report ZIP+4 coded

(including delivery point barcoded) and

uncoded pieces by each rate for which

specific numbers of pieces are eligible;

and a cumulative total for the segment

through that entry. As applicable, data

on each line must be broken down

further:

a. In Periodicals mailings, to

separately report in-county and outsidecounty pieces, and Level G/J1 and Level

H/J3 rates.

b. In Standard Mail, to separately

report pieces at each destination entry

rate.

6.8 Subtotals and Summaries

Each column of data must be

subtotaled at the end of each segment of

the report, and a summary must list data

for the entire mailing, including the

residual. The summary must include:

a. The number of pieces with a ZIP+4

code or delivery point barcode, the

number without, the total number of

pieces in the mailing, and the

percentage with ZIP+4 codes or delivery

point barcodes.

b. Each rate (or weight increment,

combination of rate and discount, or

other variable in 6.7), the number of

pieces at each rate, the total postage at

each rate, and the total postage for the

mailing. (For Periodicals mailings,

postage rates and computed totals may

be omitted.)

c. For postage-affixed mailings,

further detail must be added as needed

to account for the value of postage

affixed, if less than the applicable

amount and the net due, to yield the

correct total postage.

M893 Barcoded Tray-Based Letter-Size

Mailings

[Text of current M814, revised to apply

only to Barcoded Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Preferred Periodicals and Nonprofit

Standard Mail claimed at a Barcoded

presort rate must be prepared as a traybased mailing under 1.2 through 1.7, 2.0

through 4.0, or as a package-based

mailing under M894 or M895. Grouping,

packaging, labeling, and traying are

subject to M010 through M030.

1.2 Grouping

Grouping is required for pieces for the

same 3-digit ZIP Code prefix in SCF

trays, and for pieces for the same AADC

area in working trays under 3.0.

Grouping by ZIP Code is not required in

5-digit, city, or 3-digit trays.

1.3 Packaging

Packaging is required:

a. For mailings consisting entirely of

pieces that qualify by size for First-Class

card rates, regardless of the actual rate

claimed or class of mail. Package labels

are required in less-than-full trays.

b. For mail in overflow AADC trays,

in mixed AADC trays, and in a lessthan-full working tray. Appropriate

package labels are required.

1.4 No Packaging

Packaging may not be used for larger

than card-size pieces, except that:

a. Mail in overflow trays must be

packaged and labeled correctly (as for

the corresponding full trays).

b. Mail in a less-than-full tray for the

entry SCF must be sorted and labeled as

3-digit packages.

c. Mail in AADC trays may be

packaged and mail in mixed AADC

trays must be packaged into AADC

packages.

d. Mail in a less-than-full working

tray under 3.0 must be packaged.

1.5 5–Digit Trays

Only pieces with correct DPBCs may

be presorted to 5-digit trays. Other

pieces for the same ZIP Code must be

sorted to successive trays as

appropriate. Preparation of 5-digit trays

is required only for mail claimed at the

5-digit Barcoded rate.

1.6 Marking

Standard Mail must be marked

’’Nonprofit Organization’’ or the

authorized abbreviation and may be

marked ’’Barcoded.’’ No marking is

required on Periodicals.

1.7 Carrier Route

Barcoded rate mail and carrier route

presort (or walk-sequence) rate mail

may not be included in the same

mailing or reported on the same mailing

statement.

1.8 Heavy Letter Mail

Each tray of heavy letter mail (as

defined in C810) must be identified by

a flag (similar to a separator card)

clearly marked ‘‘HEAVY LETTER

MAIL’’ and placed in front of the

contents of the tray. Each pallet, general

purpose mail container, or other

equipment used to transport trays of

heavy letter mail must be labeled

’’HEAVY LETTER MAIL,’’ in letters not

less than 1/2 inch high on white or

light-colored stock not smaller than 8 by

11 inches, on two adjacent sides of the

pallet or other equipment.

[In 2.2b, replace ’’second-class’’ with

’’Periodicals’’; no other change to 2.0.]

* * * * *

3.0 RESIDUAL MAIL

Pieces remaining after packages and

trays are prepared under 2.0 are residual

(nonqualifying) mail.

Residual Periodicals or Standard Mail

must be prepared as follows:

a. All pieces must be sorted by AADC

area, using L804.

b. Quantities of 10 or more pieces for

an AADC area must be prepared as an

AADC package (or, if possible, a full

AADC tray). Packaging is not required

in full AADC trays. AADC packages of

fewer than 10 pieces are not permitted.

c. All AADC packages must be trayed

in AADC or mixed AADC trays. Pieces

remaining after preparing full AADC

trays and AADC packages must be

placed in separate working trays.

d. Pieces in less-than-full AADC

overflow trays and in all mixed AADC

trays must be packaged and labeled as

AADC packages using a pink Label A or

OEL. Separator cards are not permitted.

e. Pieces in working trays must be

grouped by AADC area. Pieces in a lessthan-full working tray must be prepared

in working packages up to 6 inches

thick making as few packages as

possible without regard to AADC

breaks. Separator cards are not

permitted. Label packages in less-thanfull working trays with either a facing

slip marked ’’WORKING’’ or ’’WKG’’ or

the optional endorsement line

’’WORKING.’’

f. A piece count listing must be

provided for all residual pieces that

shows by tray level and AADC area
66690 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

(listed by numeric AADC code from the

labeling list in L804) the number of

pieces eligible for each rate and the

number of pieces with a DPBC, the

number of pieces without a DPBC that

qualify for ZIP+4 rates, and the number

of other pieces.

g. Tray size:

(1) AADC: required full trays; one

less-than-full overflow tray permitted

per destination per mailing.

(2) Mixed AADC: required full trays;

one less-than-full tray permitted.

(3) Working: required full trays; one

less-than-full tray permitted.

h. Residual presort sequence and Line

1 labeling:

(1) AADC (required); use L804 for

Line 1.

(2) Mixed AADC (required); for Line

1 use MXD, followed by the applicable

entry SCF name, state, and SCF code

from L002, Column A (facilities

identified with three bullets), or Column

B, except use L805 for mail entered by

the mailer at an ASF or BMC.

(3) Working (required); for Line 1 use

MXD, followed by the applicable entry

SCF name, state, and ZIP Code from

L002, Column A (facilities identified

with three bullets), or Column B, except

use L805 for mail entered by the mailer

at an ASF or BMC.

i. For Line 2: class (PERIOD or NEWS

(applicable), or STD), followed by:

(1) For AADC trays: LTRS AADC

BARCODED.

(2) For mixed AADC trays: LTRS

BARCODED PKGS.

(3) For working trays: LTRS

BARCODED WKG.

4.0 DOCUMENTATION

4.1 Mailing Statement

A complete, signed mailing statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing. The mailing endorsement

‘‘M893’’ must be placed at the top,

based on the documentation method

used, and ‘‘ZIP Code Option’’or ‘‘Tray

Label Option.’’

* * * * *

4.4 Standards

Documentation must include residual

pieces and meet the basic standards in

P012 and those below. Abbreviated

documentation may be provided under

M896. Combined mailings of Periodicals

publications must also be documented

under M210.

* * * * *

4.6 Zip Code Option

Under the ZIP Code option,

individual entries for each type of tray

destination must be listed sequentially

by ZIP Code: by 5-digit ZIP Code for 5-

digit trays, by lowest assigned 5-digit

ZIP Code for city trays (Periodicals

only), by 3-digit ZIP Code for 3-digit and

SCF trays, by the 3-digit AADC code

(preceded by ‘‘AADC’’) in L804 for

AADC, mixed AADC, and working

trays. Volume in overflow trays must be

included in the corresponding entry

even though there is a list of overflow

trays.

4.7 Tray Label Option

Under the tray label option,

individual entries for each tray must be

listed sequentially by the unique tray

number on each label or by Line 1 on

the label. The contents of each overflow

tray are reported as an individual entry

even though there is a list of overflow

trays. Each tray entry must be

subdivided as needed to report volume

sequentially by ZIP Code in the tray: by

5-digit ZIP Code for 5-digit trays, by

lowest assigned 5-digit ZIP Code for city

trays (Periodicals only, by 3-digit ZIP

Code for 3-digit and SCF trays, by the

3-digit AADC code (preceded by

‘‘AADC’’) in L804 for AADC, mixed

AADC, and working trays.

4.8 Line Entries

Under either option, each entry must

report DPBC mail, correctly ZIP+4

coded non-DPBC mail (meeting the

standards in C830), and other pieces by

each rate for which specific numbers of

pieces are eligible, and a cumulative

total for the segment through that entry.

As applicable, data on each line must be

subdivided further:

a. In Periodicals mailing, to separately

report in-county and outside-county

pieces, and Level G/J1 and Level H/J3

rates.

b. In Standard Mail, to separately

report pieces at each destination entry

rate.

4.9 Subtotals and Summaries

Each column of data must be

subtotaled at the end of each segment of

the report and a summary must list data

for the entire mailing, including the

residual. The summary must include:

a. The number of pieces with a DPBC,

the number without, the total number of

pieces in the mailing, and the

percentage with DPBCs.

b. Each rate (or weight increment,

combination of rate and discount, or

other variable in 4.8), the number of

pieces at each rate, the total postage at

each rate, and the total postage for the

mailing. (For Periodicals mailings,

postage rates and computed totals may

be omitted.)

c. A list of overflow trays.

d. For postage-affixed mailings,

further detail must be added as needed

to account for the value of postage

affixed, if less than the applicable

amount and the net due, to yield the

correct total postage.

M894 Barcoded Two-Tier Package—

Based Letter-Size Mailings

[Text of current M815, revised to apply

only to Barcoded Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Preferred Periodicals and Nonprofit

Standard Mail claimed at a Barcoded

presort rate must be prepared as a traybased mailing under M893, as a two-tier

package based mailing under 1.2

through 1.6, 2.0 through 5.0, or as a

three-tier package-based mailing under

M895. Grouping, packaging, labeling,

and traying are subject to M010 through

M030.

* * * * *

1.3 No Packaging

Packages or separator cards are not

required for larger than card-size pieces

in full 5-digit trays, full AADC trays if

the contents are only residual AADC

packages, and full working trays under

4.2 and 4.3.

[Delete current 1.4 and replace with the

following:]

1.4 Marking

Standard Mail must be marked

‘‘Nonprofit Organization’’ or the

authorized abbreviation and may be

marked ‘‘Barcoded.’’ No marking is

required on Periodicals.

* * * * *

[In 2.1b, 2.2b, 3.2b, 3.3b, and 3.4b,

replace ‘‘second-class’’ with

‘‘Periodicals’’; delete the parenthetical

in 2.1c and 2.2c; no other change to 2.0

or 3.0.]

4.0 RESIDUAL MAIL

4.1 Definition

Pieces remaining after packages and

trays are prepared under 2.0 and 3.0 are

residual (nonqualifying) mail. Residual

Periodicals and Standard Mail must be

prepared under an option in 4.2 and 4.3.

All residual mail must be presented

under 4.6.

4.2 Options

Residual Periodicals and Standard

Mail must be prepared under one of

these options and in accordance with

4.3.

a. Separate AADC Preparation.

Residual mail is trayed separately from
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66691

qualifying mail. Groups of 10 or more

residual pieces to an AADC area in L804

are placed in AADC trays and mixed

AADC trays. AADC trays are required if

there are enough pieces to fill a tray, but

less-than-full AADC trays are permitted.

Residual pieces in mixed AADC trays

and in less-than-full AADC trays must

be prepared and labeled as AADC

packages. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 4.3.

b. Intermixed SCF/AADC Preparation.

Some residual mail is trayed with

qualifying mail. Groups of 10 or more

residual pieces to the same AADC area

in L804 are packaged by AADC and

placed in AADC trays (with qualifying

mail) and in mixed AADC trays. AADC

trays are required if there are enough

pieces to fill a tray, but less-than-full

AADC trays are permitted. AADC trays

containing only residual AADC

packages are allowed. Mixed AADC

trays are limited to residual AADC

packages. At the mailer’s option,

residual mail may be packaged by 3-

digit ZIP Code and placed in SCF trays

(remaining pieces sorted by AADC). A

less-than-full tray for the entry SCF

containing only residual packages is

allowed. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 4.3.

4.3 Required Preparation

Subject to 4.1 and 4.2, residual mail

must be prepared as follows:

* * * * *

d. Tray presort sequence and Line 1

labeling:

[In 4.3d(4) and 4.3d(5), delete ‘‘secondand third-class.’’]

e. Line 2: class (PERIOD or NEWS (as

applicable), or STD), followed by:

(1) On 3-digit and SCF trays (option

5.2b only); ZIP+4 PRESORT.

(2) On AADC trays: AADC ZIP+4

PRESORT.

(3) On mixed AADC trays: ZIP+4

PRESORT PKGS.

(4) On working trays: ZIP+4

WORKING or ZIP+4 WKG.

[Delete current 4.4 and 4.5; renumber

current 4.6 as 4.4, no change in text.]

5.0 DOCUMENTATION

5.1 Mailing Statement

A complete, signed mailing statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing. The endorsement ‘‘M894’’

must be placed at the top.

5.2 Standards

Documentation must include residual

pieces and must meet the basic

standards in P012 and those below.

Abbreviated documentation may be

provided under M896. Combined

mailings of Periodicals publications

must be documented under M210.

5.3 When Not Required

Documentation under 5.4 through 5.8

is not required if each piece in the

mailing is correctly delivery point

barcoded and either has postage affixed

at the exact rate for which it qualifies;

or is of identical weight, the pieces in

each tray are subject to the same rate,

and the trays for each rate are segregated

when presented to the USPS.

5.4 Segmentation, Labeling

Documentation must be segmented

and labeled by qualification tier (e.g.,

presort and residual). Each tier must be

further segmented by type of package/

grouping (5-digit, 3-digit, AADC, as

applicable) under 5.5, or have all

represented 3- and 5-digit ZIP Codes

(and AADC codes for residual mail

under 4.2 and 4.3) reported in a

continuous sequential list under 5.6

within each tier listing. Under either

option, data must be presented as

shown in 5.7 and 5.8.

5.5 Type of Package Option

If the report is segmented by type of

package, for each type, individual

entries for each destination must be

ordered sequentially by ZIP Code: by 5-

digit ZIP Code for 5-digit packages, by

lowest assigned 5-digit ZIP Code for city

packages (Periodicals only), by 3-digit

ZIP Code for 3-digit packages, and, for

AADC packages and AADC groups (in

working trays) under 5.2 and 5.3, by the

applicable 3-digit AADC code in L804

(AADC entries must be preceded by

‘‘AADC’’).

5.6 Sequential List Option

If the report is a sequential list,

individual entries for each destination

must be ordered sequentially by ZIP

Code within each tier, regardless of

package type: 5-digit ZIP Code for 5-

digit packages, by lowest assigned 5-

digit ZIP Code for city packages

(Periodicals only), by 3-digit ZIP Code

for 3-digit packages, and, for AADC

packages and AADC groups (in working

trays) under 4.2 and 4.3, by the

applicable 3-digit AADC code in L804.

AADC entries must be preceded by the

prefix ‘‘AADC.’’ For Periodicals only,

listings for 5-digit, city, and 3-digit

packages must be preceded by the

prefixes 5DG, CTY, and 3DG,

respectively.

5.7 Line Entries

Under either option, each entry must

separately report DPBC pieces, correctly

ZIP+4 coded non-DPBC pieces (meeting

the standards in C830), and other

pieces, by each rate for which specific

numbers of pieces are eligible; and a

cumulative total for the segment

through that entry. As applicable, data

on each line must be subdivided further.

a. In Periodicals mailings, to

separately report in-county and outsidecounty pieces, and Level G/J1 and Level

H/J3 rates.

In Standard Mail, to separately report

pieces at each destination entry rate.

5.8 Subtotals and Summaries

Each column of data must be

subtotaled at the end of each segment of

the report, and a summary must list data

for the entire mailing, including the

residual. The summary must include:

a. The number of pieces with a DPBC,

the number without, the total number of

pieces in the mailing, and the

percentage with DPBCs.

b. Each rate (or weight increment,

combination of rate and discount, or

other variable in 5.7), the number of

pieces at each rate, the total postage at

each rate, and the total postage for the

mailing. (For Periodicals mailings,

postage rates and computed totals may

be omitted.)

c. For postage-affixed mailings,

further detail must be added as needed

to account for the value of postage

affixed, if less than the applicable

amount, and the net due, to yield the

correct total postage.

M895 Barcoded Three-Tier PackageBased Letter-Size Mailings [Text of

current M816, revised to apply only to

Barcoded Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Preferred Periodicals and Nonprofit

Standards Mail claimed at a Barcoded

presort rate must be prepared as a traybased mailing under M893, as a two-tier

package-based mailing under M894, or

as a three-tier package-based mailing

under 2.0 through 7.0. Grouping,

packaging, labeling, and traying are

subject to M010 through M030.

* * * * *

1.3 No Packaging

Packages or separator cards are not

required for larger than card-size pieces

in full 5-digit trays in the 5-digit tier;

nor in the 3-digit tier in full city, full 3-

digit, full SCF, and full AADC trays
66692 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

containing only residual AADC

packages; nor in full working trays

under 6.2 and 6.3.

* * * * *

1.5 Marking

Standard Mail must be marked

‘‘Nonprofit Organization’’ or the

authorized abbreviation, and may be

‘‘marked’’ Barcoded.’’ No marking is

required on Periodicals.

* * * * *

[In 4.1a, 4.2a, 5.2a, 5.3a, and 5.4b,

replace ‘‘second-class’’ with

‘‘Periodicals’’; delete the parenthetical

‘‘optional for . . . ’’ in 4.1b and 4.2b; no

other change to 2.0 through 5.0.]

6.0 RESIDUAL MAIL

6.1 Definition

Pieces remaining after packages and

trays are prepared under 2.0 through 5.0

are residual (nonqualifying) mail.

Residual Periodicals and Standard Mail

must be prepared under an option in 6.2

and 6.3. All residual mail must be

presented under 6.6.

6.2 Options

Residual Periodicals and Standard

mail must be prepared under one of

these options and in accordance with

6.3.

a. Separate AADC Preparation.

Residual mail is trayed separately from

qualifying mail. Groups of 10 or more

residual pieces to an AADC area in L804

are placed in AADC trays and mixed

AADC trays. AADC trays are required if

there are enough pieces to fill a tray, but

less-than-full AADC trays are permitted.

Residual pieces in mixed AADC trays

and in less-than-full AADC trays must

be prepared and labeled as AADC

packages. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 6.3.

b. Intermixed SCF/AADC Preparation.

Some residual mail is trayed with

qualifying mail. Groups of 10 or more

residual pieces to the same AADC area

in L804 are packaged by AADC and

placed in AADC trays (with qualifying

mail) and in mixed AADC trays. AADC

trays are required if there are enough

pieces to fill a tray, but less-than-full

AADC trays are permitted. AADC trays

containing only residual AADC

packages are allowed. Mixed AADC

trays are limited to residual AADC

packages. At the mailer’s option,

residual mail may be packaged by 3-

digit ZIP Code and placed in SCF trays

(remaining pieces sorted by AADC). A

less-than-full tray for the entry SCF

containing only residual packages is

allowed. Remaining groups of fewer

than 10 pieces to an AADC are placed

in separate working trays. Packages and

trays must be prepared under 6.3.

6.3 Required Preparation

Subject to 6.1 and 6.2, residual mail

must be prepared as follows:

* * * * *

d. Tray presort sequence and Line 1

labeling:

[In 6.3d(4) and 6.3(5), delete ‘‘secondand third-class.’’]

e. Line 2: class (PERIOD, NEWS, or

STD), followed by:

(1) On 3-digit and SCF trays (option

6.2b only): ZIP+4 PRESORT.

(2) ON AADC trays: AADC ZIP+4

PRESORT.

(3) On mixed AADC trays: ZIP+4

PRESORT PKGS.

(4) On working trays: ZIP+4

WORKING of ZIP+4WKG.

[Delete current 6.4 and 6.5; renumber

current 6.6 as 6.4, no change in text.]

7.0 DOCUMENTATION

7.1 Mailing Statement

A complete, signed mailing statement,

using the correct USPS form or an

approved facsimile, must accompany

each mailing. The endorsement ‘‘M895’’

must be placed at the top.

7.2 Standards

Documentation must include residual

pieces and must meet the basic

standards in P012 and those below.

Abbreviated documentation may be

provided under M896. Combined

mailings of Periodicals publications

must be documented under M210.

7.3 When Not Required

Documentation under 7.4 through 7.8

is not required if each piece in the

mailing is correctly delivery point

barcoded and either has postage affixed

at the exact rate for which it qualifies;

or is of identical weight, the pieces in

each tray are subject to the same rate,

and the trays for each rate are segregated

when presented to the USPS.

7.4 Segmentation, Labeling

Documentation must be segmented

and labeled by qualification tier (e.g.,

presort and residual). Each tier must be

further segmented by type of package/

grouping (5-digit, AADC, as applicable)

under 7.5, or have all represented 3- and

5-digit ZIP Codes (and AADC codes for

residual mail under 6.2 and 6.3)

reported in a continuous sequential list

under 7.6 within each tier listing. Under

either option, data must be presented as

shown in 7.7 and 7.8.

7.5 Type of Package Option

If the report is segmented by type of

package, for each type, individual

entries for each destination must be

ordered sequentially by ZIP Code: by

digit ZIP Code for 5-digit packages, by

lowest assigned 5-digit ZIP Code for city

packages (Periodicals only), by 3-digit

ZIP code for 3-digit packages, and, for

AADC packages and AADC groups (in

working trays), by the applicable 3-digit

AADC code in L804 (AADC entries must

by preceded by ‘‘AADC’’).

7.6 Sequential List Option

If the report is a sequential list,

individual entries for each destination

must be ordered sequentially by ZIP

Code within each tier, regardless of

package type: by 5-digit ZIP Code for 5-

digit packages, by lowest assigned 5-

digit ZIP Code for city packages

(Periodicals only), by 3-digit ZIP Code

for 3-digit packages, and, for AADC

packages and AADC groups (in working

trays) under 6.2 and 6.3, by the

applicable 3-digit AADC code in L804.

AADC entries must be preceded by the

prefix ‘‘AADC.’’ For Periodicals only,

listings for 5-digit, city, and 3-digit

packages must be preceded by the

prefixes 5DG, CTY, and 3DG,

respectively.

7.7 Line Entries

Under either option, each entry must

separately report DPBC pieces, correctly

ZIP+4 coded non-DPBC pieces (meeting

the standards in C830), and other

pieces, by each rate for which specific

numbers of pieces are eligible; and a

cumulative total for the segment

through that entry. As applicable, data

on each line must be subdivided further.

a. In Periodicals mailings, to

separately report in-county and outsidecounty pieces, and Level G/J1 and Level

H/J3 rates.

b. In Standard Mail, to separately

report pieces at each destination entry

rate.

7.8 Subtotals and Summaries

Each column of data must be

subtotaled at the end of each segment of

the report, and a summary must list data

for the entire mailing, including the

residual. The summary must include:

a. The number of pieces with a DPBC,

the number without, the total number of

pieces in the mailing, a and the

percentage with DPBCs.

b. Each rate (or weight increment,

combination of rate and discount, or

other variable in 7.7), the number of

pieces at each rate, the total postage at

each rate, and the total postage for the

mailing. (For Periodicals mailings,
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66693

postage rates and computed totals may

be omitted.)

c. For postage-affixed mailings,

further detail must be added as needed

to account for the value of postage

affixed, if less than the applicable

amount, and the net due, to yield the

correct total postage.

M896 Elective Documentation for

Letter-Size Mailings

[Text of current M817; in 1.1, 2.2, 2.4,

3.1c, and 4.8, replace ‘‘M812 through

M816’’ with ‘‘M891 through M895’’; in

1.2, 4.7b, and 4.7d, replace ‘‘M817,’’

‘‘M815,’’ and ‘‘M812 or M814’’ with

‘‘M896,’’ ‘‘M894,’’ and ‘‘M891 or M893,’’

respectively; no other change in text.]

[Delete current M818 and M819.]

M897 ZIP+4 Barcoded Flat-Size Mail

[Text of current M823, revised to apply

only to Barcoded Preferred Periodicals

publications and Nonprofit Standard

Mail.]

1.0 BASIC STANDARDS

1.1 Standards

Flat-size Preferred Periodicals and

Nonprofit Standard Mail claimed at a

ZIP+4 Barcoded presort rate must be

prepared as described below. Packaging,

labeling, a and sacking are subject to

M010 through M030.

* * * * *

1.5 Marking

Standard Mail must be marked

‘‘Nonprofit Organization’’ or the

authorized abbreviation, and may be

marked ‘‘Barcoded.’’ No marking is

required on Periodicals.

* * * * *

2.0 PACKAGE PREPARATION—

MAILINGS SUBJECT TO 85% RULE

2.1 Package Size, Presort, and

Labeling—Periodicals

Package size, presort sequence, and

labeling for Periodicals:

a. 5-digit: required at six pieces;

smaller packages permitted but do not

qualify for Level H rates; use red Label

D or optional endorsement line (OEL).

b. City: optional at six pieces; smaller

packages permitted but do not qualify

for Level H rates; use yellow Label C or

OEL.

c. 3-digit: required at six pieces;

smaller packages permitted but do not

qualify for Level H rates; use green

Label 3 or OEL.

d. SCF: required at six pieces; smaller

packages permitted; use green Label 3 or

OEL.

2.2 Package Size, Presort, and

Labeling—Standard Mail

Package size, presort sequence, and

labeling for Standard Mail:

a. 5-digit: required at 10 pieces;

smaller packages prohibited; use red

Label D or optional endorsement line

(OEL).

b. 3-digit: required at 10 pieces;

smaller packages prohibited; use green

Label 3 or OEL.

c. SCF: required at 10 pieces; smaller

packages prohibited; use green Label 3

or OEL.

3.0 PACKAGE PREPARATION—

MAILINGS NOT SUBJECT TO 85%

RULE

3.1 Package Size, Presort, and

Labeling—Periodicals

Package size, presort sequence, and

labeling for Periodicals:

a. 5-digit (ZIP+4 or DPBC pieces only;

see 1.3): required at six pieces; smaller

packages prohibited; use red Label D or

optional endorsement line (OEL).

b. 5-digit (nonbarcoded pieces only;

see 1.3): required at six pieces; smaller

packages prohibited; use red Label D or

OEL.

c. City: optional at six pieces; smaller

packages permitted but do not qualify

for Level H rates; use yellow Label C or

OEL.

d. 3-digit: required at six pieces;

smaller packages permitted but do not

qualify for Level H rates; use green

Label 3 or OEL.

e. SCF: required at six pieces; smaller

packages permitted; use green Label 3 or

OEL.

3.2 Package Size, Presort, and

Labeling—Standard Mail

Package size, presort sequence, and

labeling for Standard Mail:

a. 5-digit (ZIP+4 or DPBC pieces only;

see 1.3): required at 10 pieces; smaller

packages prohibited; use red Label D or

optional endorsement line (OEL).

b. 5-digit (nonbarcoded pieces only;

see 1.3): required at 10 pieces; smaller

packages prohibited; use red Label D or

OEL.

c. 3-digit: required at 10 pieces;

smaller packages prohibited; use green

Label 3 or OEL.

d. SCF: required at 10 pieces; smaller

packages prohibited; use green Label 3

or OEL.

4.0 SACK PREPARATION—

QUALIFYING MAIL

4.1 Sack Size, Presort, and Labeling—

Periodicals

Sack size, presort sequence, and

labeling for Periodicals:.

a. 5-digit: required with four

packages; smaller volume permitted; use

5-digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. City: optional with four packages;

smaller volume permitted; use lowest

ZIP Code for destination from L001 for

Line 1.

c. 3-digit: required with four

packages; smaller volume permitted; use

L002, Column A, for Line 1.

d. SCF: required with four packages;

smaller volume permitted; use L002,

Column B, for Line 1.

e. ADC: required with no minimum.

4.2 When to Sack—Standard Mail

For Standard Mail, a sack must be

prepared when the quantity of mail for

a required presort destination reaches

either 125 pieces or 15 pounds of

pieces, whichever occurs first, subject to

these conditions:

a. For identical-weight pieces, a

single-piece weight of 1.92 ounces (0.12

pound) results in 125 pieces weighing

15 pounds. Identical-weight pieces

weighing 1.92 ounces (0.12 pound) or

less must be prepared using the 125-

piece minimum, those that weigh more

must be prepared using the 15-pound

minimum.

b. For nonidentical-weight pieces,

mailers must either use the minimum

that applies to the average piece weight

for the entire mailing (divide the net

weight of the mailing by the number of

pieces; the resulting average singlepiece weight determines whether the

125-piece or 15-pound minimum

applies) or sack by the actual piece

count or mail weight for each sack, if

documentation can be provided with

the mailing that shows (specifically for

each sack) the number of pieces and

their total weight.

c. Mailers must note on the

accompanying mailing statement

whether they applied the 125-piece

(‘‘PCS’’) or 15-pound (‘‘WT’’) threshold

or if the method in 4.2b (‘‘BOTH’’) was

used.

4.3 Sack Size, Presort, and Labeling—

Standard Mail

Sack size, presort sequence, and

labeling Standard Mail, subject to 4.2:

a. 5-digit: required at 125 pieces/15

pounds; smaller volume prohibited; use

5-digit ZIP Code destination of packages

for Line 1, preceded for military mail by

the correct prefixes under M031.

b. 3-digit: required at 125 pieces/15

pounds; smaller volume prohibited; use

L002, Column A, for Line 1.

c. SCF: required at 125 pieces/15

pounds; smaller volume prohibited; use

L002, Column B, for Line 1
66694 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

d. ADC: required with no minimum;

use L004 for Line 1

4.4 Line 2

Line 2: class of mail and FLATS

BARCODED (and, on city sacks, CITY

right-justified under the ZIP Code for

Line 1).

5.0 RESIDUAL MAIL

[In 5.4a, delete ‘‘second- or third-class’’;

no other change in text in 5.0.]

6.0 DOCUMENTATION

[In 6.9c, replace ‘‘second-class’’ with

Periodicals’’; revise other text as

follows:]

* * * * *

6.7 Line Entries

Under either option, the mailer must

identify 5-digit, city, 3-digit, SCF,and

residual packages by the prefixes 5DG,

3DG, SCF, and WKG, respectively. Each

entry must separately report ZIP+4 or

DPBC pieces, and 5-digit barcoded or

nonbarcoded pieces, by each rate for

which specific numbers of pieces are

eligible; and a cumulative total for the

segment through that entry. As

applicable, data on each line must be

subdivided further in Periodicals

mailings, to separately report in-county

and outside-county pieces, and Level G/

J1 and Level H/J3 rates.

6.8 Actual Piece Count

In Standard Mail for which the mailer

used the actual piece count and weight

of the mail to prepare sacks (‘‘BOTH’’),

a separate listing must identify for each

sack the total number of pieces it

contains and their combined weight.

* * * * *

M898 Elective Documentation for FlatSize Mailings

[Text of current M825; in 1.1, 2.2, 2.3,

3.1c, 3.4, and 4.5, replace ‘‘M823’’ with

‘‘M897’’; in 1.2, replace ‘‘M825’’ with

‘‘M898’’; no other change in text]

[Delete current M827.]

P POSTAGE AND PAYMENT

METHODS

P000 Basic Information

P010 General Standards

P011 Payment

[In 1.5 and 2.3, replace ‘‘third-class

mail’’ with ‘‘Standard Mail (A)’’; in 2.3,

replace ‘‘fourth-class’’ with ‘‘Standard

Mail (B)’’; in 4.2 and 5.1, change the

reference form ‘‘E370’’ to ‘‘E670’’; in 5.0

and 5.1, replace ‘‘special [bulk] thirdclass’’ with ‘‘Nonprofit Standard Mail’’;

no other change in text]

P012 Documentation

1.0 PURPOSE AND BASIC

STANDARDS

* * * * *

1.6 When Required

In addition to the correct mailing

statement under 3.0, documentation is

required for a First-Class or Standard

Mail mailing in which all pieces are not

of identical weight and full postage at

the applicable rate is not affixed to each

piece, for all mailings paid with permit

imprint in which pieces at different

rates are not separated when presented

to the USPS. Documentation also must

be submitted when specified by the

standards for the rate claimed.

* * * * *

2.0 BASIC CONTENT AND FORMAT

[Renumber current 2.1 through 2.6 as

2.2 through 2.7, respectively, and add

new 2.1 as follows:]

2.1 Standardized Documentation

Standardized documentation contains

the elements described in 2.2 through

2.7, as applicable. Documentation

produced by Presort Accuracy

Verification and Evaluation (PAVE) or

Manifest Analysis and Certification

(MAC) software, appropriate for the

accompanying class of mail and rate

claimed, is considered standardized

documentation for purposes of these

standards.

2.2 Format and Content

Standardized documentation

includes:* * *

* * * * *

3.0 MAILING STATEMENT

[Add to the end of the section:] * * *

A facsimile mailing statement produced

by Presort Accuracy Verification and

Evaluation (PAVE) or Manifest Analysis

and Certification (MAC) software,

appropriate for the accompanying class

of mail and rate claimed, is considered

a USPS-approved form for purposes of

these standards.

P013 Rate Application and

Computation

1.0 BASIC STANDARDS

* * * * *

1.3 Determing Single-Piece Weight

To determine single-piece weight in

any mailing at single-piece rates, in a

bulk rate mailing at Standard Mail

parcel post or Special Standard Mail

rates, or in any bulk rate mailing of

nonidentical-weight pieces (except at

Periodicals rates), weight each piece

individually. To determine single-piece

weight in any other bulk or presort rate

mailing (except at Periodicals rates),

compute the average weight of a single

piece by weighing a sample group of at

least 10 randomly selected pieces and

dividing the total sample weight by the

number of pieces in the sample. Express

all single-piece weights in decimal

pounds rounded off to four decimal

places.

1.4 Affixing Postage—Single-Piece

Rate Mailings

In a postage-affixed single-piece rate

Express Mail, First-Class, Priority Mail,

or Standard Mail (A) mailing, or in any

postage-affixed Standard Mail (B)

mailing, the mailer must affix to each

piece a value in adhesive stamps,

precanceled stamps, or meter

impressions equal to at least the postage

required for the piece. (In a Standard

Mail bound printed matter rate mailing,

the postage affixed to each piece must

be at least the sum of the applicable per

pound charge based on the weight of the

piece plus one unit of the applicable per

piece charge.) Less than the correct

amount of postage may be affixed only

when allowed by standard or specific

USPS authorization.

1.5 Affixing Postage—Other Than

Single-Piece Rate Mailings

In a First-Class, Priority Mail, or

Standard Mail postage-affixed mailing at

other than a single-piece rate, the mailer

must affix to each piece a value in

precanceled stamps or meter

impressions that equals at least the full

amount of postage at the applicable rate;

or

a. For First-Class and Priority Mail,

the applicable postage at the lowest rate

in the mailing (or a lesser amount if

authorized under P760) if all additional

postage in paid at the time of mailing.

b. For Standard Mail (A), the

minimum per piece charge, with the

pound rate charge paid with permit

imprint under the applicable standards;

or the applicable postage at the lowest

rate in the mailing (or a lesser amount

if authorized under P760) if all

additional postage is paid at the time of

mailing.

c. For Standard Mail bound printed

matter, the postage affixed to each piece

must be at least the sum of the

applicable per pound charge plus one

unit of the applicable per piece charge.

* * * * *

3.0 RATE APPLICATION—

PERIODICALS

3.1 Rate Elements

Postage for all Periodicals includes a

pound rate charge, a piece rate charge,
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66695

and any discounts and reductions for

which the mail qualifies under the

corresponding standards.

3.2 Applying Pound Rate

Pound rates are applied to the weight

of the mailpieces in the mailing. Regular

and preferred outside-county pound

rates are based on the weight of the

advertising portion of the mail sent to

each postal zone (as computed from the

office of entry) and the weight of the

nonadvertising portion without regard

to zone. In-county pound rates consist

of a delivery office zone rate and a

uniform (unzoned) rate for all other

eligible mailpieces delivered within the

county of publication. Publications

Service pound rates are based on the

weight of the mail sent to each postal

zone (as computed from the office of

entry) without regard to advertising

content. The minimum pound rate

charge for any zone or other group for

which a per pound charge is computed

is 1 unit (1 pound) of the pound rate

charge. For example, three 2-ounce

pieces for a zone are subject to the

minimum 1-pound charge.

3.3 Computing Weight of Advertising

Portion

Advertising content is a postage factor

only for Regular and Preferred

Periodicals. The pound rate charge is

the sum of the charges for the computed

weight of the advertising portion of

copies to each zone, plus an additional

flat (unzoned) charge for the total

weight of the nonadvertising portion of

all copies to all zones. For publications

containing advertising, the minimum

pound rate charge for any zone to which

copies are mailed is 1 unit (pound) of

the advertising pound rate charge. The

minimum pound rate charge for the

nonadvertising portion is that which

applies to all weight not reported in the

advertising (zoned) portion. (Authorized

nonprofit rate publications with an

advertising percentage that is 10% or

less are considered 100%

nonadvertising. When computing the

pound rates and the nonadvertising

adjustment, use ‘‘0’’ as the ‘‘advertising

percentage.’’ Authorized nonprofit rate

publications claiming 0% advertising

must pay the nonadvertising pound rate

for the entire weight of all copies to all

zones.)

* * * * *

4.0 RATE APPLICATION—

STANDARD MAIL (A)

4.1 Single-Piece Rates

[In 4.1a, 4.1b, and 4.1c, replace ‘‘thirdclass’’ with ‘‘Standard Mail (A)’’ and

revise the opening of the section as

follows:]

Single-piece rate postage is based on

the rate that applies to the weight

(postage) increment of each piece.

Single-piece rates are applied differently

depending on weight: * * *

* * * * *

4.3 Bulk Rates

Bulk rates are based on the weight of

the pieces and are applied differently to

pieces weighing under or equal to a

‘‘break point’’ and those weighing more:

a. Pieces weighing 0.2059 pound

(3.2941 ounces) or less (Automation or

Enhanced Carrier Route rates), 0.2067

pound (3.3071 ounces) or less (Regular

rates), or 0.2149 pound (3.4383 ounces)

or less (Nonprofit rates), are subject to

the minimum applicable rate per piece.

b. Pieces weighing more than 0.2059

pound (3.2941 ounces) (Automation or

Enhanced Carrier Route rates), 0.2067

pound (3.3071 ounces) (Regular rates),

or 0.2149 pound (3.4383 ounces)

(Nonprofit rates), are subject to a per

piece charge plus a per pound charge

based on the weight of the piece.

5.0 RATE APPLICATION—

STANDARD MAIL (B)

* * * * *

5.4 Special Standard Mail

The Special Standard Mail rate is

charged per pound or fraction thereof;

any fraction of a pound is considered a

whole pound. (Rate application is

identical for the single-piece and presort

rates.) For example, if an item weighs

4.225 pounds, the weight (postage)

increment is 5 pounds. The minimum

postage rate per piece is that for a piece

weighing 1 pound.

* * * * *

7.0 COMPUTING POSTAGE—

PERIODICALS

* * * * *

7.4 Pound Rate

To compute the pound rate postage

for Regular and Preferred outsidecounty copies, multiply the weight of

the advertising and nonadvertising

portions by the corresponding rates, add

the unrounded results, and subtract any

applicable discounts. To compute the

pound rate postage for in-county and

Publications Service copies, multiply

their total weight by the corresponding

rate per pound.

* * * * *

7.6 Nonadvertising Adjustment

To compute the nonadvertising

adjustment (where applicable), subtract

the advertising percentage from 100,

multiply the remainder by the

nonadvertising adjustment per piece,

multiply the unrounded product by the

number of pieces, and round off the

product to four decimal places.

* * * * *

8.0 COMPUTING POSTAGE—

STANDARD MAIL (A)

* * * * *

9.0 COMPUTING POSTAGE—

STANDARD MAIL (B)

[In 9.1b and 9.3, replace ‘‘fourth-class’’

with ‘‘Standard Mail (B)’’; in 9.4,

replace ‘‘R400’’ with ‘‘R600’’; combine

current 9.5 and 9.6 and revise as

follows:]

9.5 Permit Imprint

In a permit imprint mailing:

a. At other than bulk bound printed

matter rates, for each weight increment

multiply the number of pieces by the

applicable rate per piece, rounding off

each product to four decimal places.

Add the products and round up the total

postage to the nearest whole cent.

b. At bulk bound printed matter rates,

for each zone multiply the total

unrounded weight of the pieces by the

applicable rate per pound (round off

each product to four decimal places)

and multiply the number of pieces by

the applicable rate per piece without

rounding. Add the pound and piece

charges and round up the total postage

to the nearest whole cent.

P014 Refunds and Exchanges

[In 2.3, replace ‘‘First-Class, third-class

single-piece, and fourth-class mail’’

with ‘‘First-Class Mail, single-piece rate

Standard Mail (A), or Standard Mail

(B)’’; in 4.1, replace ‘‘First-Class or bulk

third-class’’ with ‘‘First-Class Mail or

bulk rate Standard Mail (A)’’; in 4.12,

replace ‘‘Presorted First-Class, ZIP+4

Presort, or one of the Barcoded’’ with

‘‘Automation’’; in 4.13, replace ‘‘[T]hird-

[C]lass’’ with ‘‘Standard Mail (A)’’; in

4.13c, replace ‘‘3/5 presort, basic ZIP+4,

or one of the Barcoded minimum perpiece rates’’ with ‘‘Nonprofit 3/5

presort, Nonprofit Basic ZIP+4, or one of

the Nonprofit Barcoded minimum per

piece rates for Nonprofit Standard Mail,

or an Automation minimum per piece

rate for other Standard Mail (A)’’; in

4.14d, replace ‘‘First- or third-class’’

with ‘‘First-Class or Standard Mail (A),’’

delete 4.14e, redesignate 4.14f as 4.14e

and replace ‘‘third-class’’ with

‘‘Standard Class (A)’’; delete 4.17c and

redesignate 4.17d and 4.17e as 4.17c

and 4.17d, respectively; in redesignated

4.17d, replace ‘‘in (b) (and (c) and (d),

as applicable)’’ with ‘‘in (b) (and (c) if

applicable)’’; no other change in text.]
66696 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

P020 Postage Stamps and Stationery

P021 Stationery Bearing Postage

[In 1.1b, replace ‘‘special bulk thirdclass’’ with ‘‘Nonprofit Standard Mail’’;

in 2.5b, replace ‘‘Express, First-, or

third-class mail’’ with ‘‘Express Mail,

First-Class, or Standard Mail (A); in

2.5a, 2.5c, and 2.5d, replace ‘‘thirdclass,’’ ‘‘THIRD-CLASS,’’ and ‘‘thirdclass’’ with ‘‘Standard Mail (A),’’

‘‘STANDARD MAIL,’’ and ‘‘Standard

Mail (A),’’ respectively; no other change

in text.]

* * * * *

P023 Precanceled Stamps

[In 1.2, replace ‘‘third-class’’ with

‘‘Standard Mail (A)’’; in 1.12, replace

‘‘Third-Class Mail’’ with ‘‘Standard

Mail’’; in 3.5a, replace ‘‘third-class

mail’’ with ‘‘Standard Mail’’; no other

change in text.]

P030 Postage Meters and Meter

Stamps

[In 1.4, replace ‘‘second-class’’ with

‘‘Periodicals’’; in 1.5 and 1.5c, replace

‘‘special fourth-class’’ with ‘‘Special

Standard Mail’’; in 4.8 and 4.9, replace

‘‘third- or fourth-class’’ with ‘‘Standard

Mail’’; in 5.3a, replace ‘‘First- or thirdclass mail’’ with ‘‘First-Class or

Standard Mail (A)’’; no other change in

text.]

P040 Permit Imprints

[In 2.5 and 3.5b, replace ‘‘bulk thirdclass mail’’ with ‘‘bulk rate Standard

Mail (A)’’; in 3.2, replace ‘‘[S]econd-

[C]lass Mail’’ with ‘‘Periodicals’’; in 3.3,

replace ‘‘[T]hird- and [F]ourth [C]lass’’

with ‘‘Standard Mail’’; in 3.5a, replace

‘‘third- or fourth-class’’ with ‘‘Standard

Mail’’; in Exhibit 4.1a, replace

‘‘Presorted,’’ ‘‘ZIP+4 Presort,’’ ‘‘ThirdClass,’’ ‘‘Bulk Rate,’’ ‘‘Fourth-Class,’’

and ‘‘Special Fourth-Class’’ with

‘‘Presort,’’ ‘‘First-Class Mail Auto,’’

‘‘Standard Mail (A),’’ ‘‘Presort,’’

‘‘Standard Mail (B),’’ and ‘‘Special

Standard Mail,’’ respectively; in Exhibit

4.1b, replace ‘‘Presorted,’’ ‘‘Third- and

Fourth-Class,’’ ‘‘Third-Class,’’ ‘‘Bulk

Rate,’’ ‘‘Bulk Rate Car-Rt Sort,’’ ‘‘Bulk

Rate,’’ ‘‘Third-Class,’’ ‘‘Fourth-Class,’’

and ‘‘Special Fourth-Class’’ with

‘‘Presort,’’ ‘‘Standard Mail’’ ‘‘Standard

Mail (A),’’ ‘‘Presort,’’ ‘‘Enhanced Carrier

Route,’’ ‘‘Presort,’’ ‘‘Standard Mail (A),’’

‘‘Standard Mail (B),’’ and ‘‘Special

Standard Mail,’’ respectively; no other

change in text.]

P070 Mixed Classes

[In 1.1, replace ‘‘second-, third-, or

fourth-class’’ with ‘‘Periodicals or

Standard Mail’’; in 1.1, 1.2, 2.1, 2.2, 2.4,

2.5, 2.5d, 2.6, 2.6d, 2.7, 2.9, 2.9b, and

3.2, replace ‘‘First- or third class’’ with

‘‘First-Class or Standard Mail (A)’’; in

1.3, 2.7, and 2.8, replace ‘‘third-class’

with ‘‘Standard Mail (A)’’; in 2.0, 2.1,

2.2, 2.4, 2.5, 2.6, 2.7, 2.9, 2.9a, and 4.2,

replace ‘‘second-class’’ with

‘‘Periodicals’’; in 3.0, replace ‘‘thirdand fourth-class’’ with ‘‘Standard Mail’’;

in 5.0 and 5.4, replace ‘‘special fourthclass’’ with ‘‘Special Standard Mail’’; no

other change in text.]

P100 First-Class Mail

* * * * *

2.0 RETAIL SINGLE-PIECE RATES

[In 2.1, replace ‘‘regular’’ with ‘‘Retail.’’]

* * * * *

4.0 RETAIL PRESORT RATES

4.1 Payment Methods

Postage on mailings made at Retail

Presort First-Class rates must be paid

with meter stamps, permit imprints, or

precanceled postage, subject to the

corresponding standards. All pieces in a

mailing must be paid with the same

method unless otherwise permitted by

standard or USPS authorization.

4.2 Postage Affixed, Generally

Unless permitted by other standards

or authorized by the USPS, when

precanceled postage or meter stamps are

used, each piece must bear the correct

postage at the Retail First-Class rate for

which it qualifies.

[Delete current 4.3, 4.4, and 4.5, and

renumber 4.6 as 4.3.]

* * * * *

5.0 AUTOMATION RATES

5.1 Payment Methods

Postage on mailings made at

Automation rates must be paid with

meter stamps, permit imprints, or

precanceled postage, subject to the

corresponding standards. All pieces in a

mailing must be paid by the same

method unless otherwise permitted by

standard or USPS authorization. Permit

imprints may be used for mailings of

nonidentical-weight pieces only if

authorized by the RCSC serving the

mailing post office.

5.2 Postage Affixed, Generally

Unless permitted by other standards

(e.g., 5.2c) or authorized by the USPS,

when precanceled postage or meter

stamps are used, only one payment

method may be used in a mailing and

each piece must bear the correct postage

at the rate for which it qualified. In a

metered or precanceled stamp mailing:

a. Each piece weighing more than 1

ounce must bear the correct amount of

additional postage to pay for the

additional ounces.

b. Flat-size pieces must bear enough

postage to include the nonstandard

surcharge if applicable.

c. Each piece may bear postage at the

lowest rate applicable to pieces in the

mailing if all additional postage is paid

at the time of mailing by advance

deposit account or by a meter strip

affixed to the required mailing

statement.

d. Documentation meeting the

standards in P012 must be presented

with the mailing statement to show the

number of pieces at each rate and the

computation of the additional postage

due for pieces not bearing full postage

at the applicable rate (i.e., the difference

between what the pieces bear and the

correct postage at the rate for which

each qualifies).

* * * * *

P200 Periodicals

[In 1.3, 1.4, 1.9, 1.11, 1.12, 2.4, and 4.0,

replace ‘‘second-class’’ with

‘‘Periodicals’’; in 1.9, replace ‘‘third- or

fourth-class’’ with ‘‘Standard Mail’’;

revise other sections as follows:]

* * * * *

2.0 MONTHLY MAILINGS

STATEMENT

* * * * *

2.4 Waiving Advertising Rates

[Revise the first sentence to read:]

Instead of marking a copy of each

issue to show the advertising and

nonadvertising portions, the publisher

may pay postage at the advertising zone

rates on both portions of all issues or

editions of a Periodicals publication

(except a requester or Publications

Service publication). * * *

[Delete current 3.0 (key rates were

eliminated as of 11/1/95); redesignate

4.0 as 3.0; delete current P300 and P400

but incorporate text into new P600 as

shown below; no change in P500.]

* * * * *

P600 Standard Mail

1.0 BASIC INFORMATION

1.1 Payment Method

Subject to the corresponding

standards, postage for single-piece rate

Standard Mail may be paid by any

method; postage for bulk rate Standard

Mail may be paid with meter or permit

imprints. Postage for bulk rate Standard

Mail (A) may also be paid with

precanceled stamps. Postage-affixed

pieces must bear the correct postage

unless excepted by standard. A permit

imprint may be used for mailings of
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66697

nonidentical-weight pieces only if

authorized by the RCSC serving the

office of mailing. The mailer is

responsible for proper payment of

postage.

1.2 Mailing Statement

The mailer must submit a complete

and signed mailing statement, as

specified in P012, with every Standard

Mail mailing for which postage is paid

with a permit imprint or claimed at any

bulk rate.

2.0 REGULAR, NONPROFIT, AND

ENHANCED CARRIER ROUTE RATES

[Text of current P300.2.0, revised as

follows:]

2.1 Identical-Weight Pieces

Bulk mailings of identical-weight

pieces at 3/5 rates may have postage

affixed at the respective rate to each

piece in the mailing with additional

postage for pieces subject to the basic

presort rate paid either by an advance

deposit account or with a meter strip

affixed to the back of the accompanying

mailing statement. The 3/5 presort rate

pieces and carrier route presort or walksequence rate pieces may not be part of

the same mailing nor (except under

D600) reported on the same mailing

statement.

* * * * *

3.0 AUTOMATION RATES

[Text of current P300.3.0, revised as

follows:]

3.1 Method

[Revise the first sentence to read:]

Postage on mailings made at all

Automation and Nonprofit ZIP+4 and

Barcoded rates must be paid with meter

stamps, permit imprints, or precanceled

postage, under applicable standards.

* * *

* * * * *

P700 Special Postage Payment

Systems

P710 Manifest Mailing System (MMS)

[In 1.0, replace ‘‘second-class’’ with

‘‘Periodicals’’; in 2.6 and 3.1, replace

‘‘First- or third-class’’ with ‘‘First-Class

or Standard Mail (A)’’; in Exhibit 3.1,

replace ‘‘Third-Class’’ with ‘‘Standard

Mail (A)’’; combine and revise current

3.3 and 3.4 as shown below and

renumber current 3.5 as 3.4; no other

change in text.]

* * * * *

3.3 Rate Category Abbreviations—

Letter-Size Mail

Keylines on letter-size First-Class

Mail or bulk Standard Mail (A) must use

only the rate category abbreviations in

3.3a or 3.3b, respectively. All mailpieces

that qualify for more than one rate of

postage must show each rate category

abbreviation, separated by a ‘‘/’’ (slash)

(e.g., ZP/DS).

Code Rate category

a. First-Class Mail

AC AUTOMATION CARRIER ROUTE

AV AUTOMATION 5-DIGIT [Letters]

AT AUTOMATION 3-DIGIT [Letters]

AF AUTOMATION 3/5 [Flats]

AB AUTOMATION BASIC

RP RETAIL PRESORT

b. Standard Mail (A)

AC AUTOMATION CARRIER ROUTE

AV AUTOMATION 5-DIGIT [Letters]

AT AUTOMATION 3-DIGIT [Letters]

AF AUTOMATION 3/5 [Flats]

AB AUTOMATION BASIC

RA REGULAR 3/5

RB REGULAR BASIC

EB ENHANCED CARRIER ROUTE BASIC

EH ENHANCED CARRIER ROUTE HIGH DENSITY

ES ENHANCED CARRIER ROUTE SATURATION

ZB NONPROFIT 5-DIGIT ZIP+4 BARCODED

TB NONPROFIT 3-DIGIT ZIP+4 BARCODED

BB NONPROFIT BASIC ZIP+4 BARCODED

ZP NONPROFIT 3/5 ZIP+4

ZN NONPROFIT BASIC ZIP+4

ST NONPROFIT SATURATION WALK SEQUENCE

HD NONPROFIT 125-PIECE WALK SEQUENCE

CP NONPROFIT CARRIER ROUTE

FD NONPROFIT 3/5 PRESORT

BA NONPROFIT BASIC PRESORT

DB DESTINATION BMC

DS DESTINATION SCF

DD DESTINATION DELIVERY UNIT

* * * * *

P720 Optional Procedure (OP) Mailing

System

[In 1.1, replace ‘‘First-, third-, and

fourth-class’’ with ‘‘First-Class and

Standard Mail’’; no other change in

text.]

* * * * *

P750 Plant-Verified Drop Shipment

(PVDS)

[In 1.1, 1.2b, 1.3a, 2.4, 2.6, 2.12a, and

5.1, replace ‘‘[S]econd-class’’ with

‘‘Periodicals’’; in 1.2c, 2.5, and 2.11,

replace ‘‘[T]hird- and [F]ourth-class’’
66698 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

with ‘‘Standard Mail’’; in 1.3b, 2.2e, and

2.5, replace ‘‘third- or fourth-class’’ with

‘‘Standard Mail’’; in 2.7, 2.9, 2.12b, 5.2,

and 6.0, replace [T]hird-[C]lass ‘‘with

‘‘Standard Mail (A)’’; in 2.8, 2.12c, 5.3,

7.0, and 7.2, replace ‘‘[F]ourth-[C]lass’’

with ‘‘Standard Mail (B)’’; no other

change in text.]

P760 First-Class or Standard Mail

Mailings With Different Postage

Payment Methods

[In 1.1 and 4.1, replace ‘‘First- or thirdclass’’ with ‘‘First-Class or Standard

Mail (A)’’; in 3.1e, 3.2, and 3.3a, replace

‘‘third-class’’ with ‘‘Standard Mail (A)’’;

in 3.3a, replace ‘‘Presorted First-Class’’

with ‘‘Retail Presort First-Class’’; in

Exhibit 4.6, replace ‘‘First-Class and

Third-Class ZIP+4 Barcoded,’’ ‘‘ZIP+4

Barcoded,’’ and ‘‘3rd’’ with ‘‘First-Class

and Standard Mail Automation and

Barcoded’’; ‘‘Automation or Barcoded,’’

and ‘‘STD,’’ respectively; revise 2.0 as

shown below; no other change in text.]

* * * * *

2.0 POSTAGE

2.1 Payment for Metered Pieces—

First-Class

Metered pieces in a combined mailing

must bear postage for the first ounce at

an Automation rate for which the pieces

are eligible and, if applicable, the full

amount of postage due for additional

ounces. Additional postage due for

metered pieces in a combined mailing is

deducted from the mailer’s advance

deposit account.

2.2 Payment for Metered Pieces—

Standard Mail (A)

Metered pieces in a combined mailing

must bear postage at an Automation rate

(or, in combined Nonprofit mailings

only, at a Nonprofit rate) for which the

pieces are eligible. Additional postage

due for metered pieces in a combined

mailing is deducted from the mailer’s

advance deposit account.

2.3 Payment for Precanceled Pieces—

First-Class

Pieces with precanceled stamps in a

combined mailing must bear postage for

the first ounce in any denomination of

precanceled stamp permitted in an

Automation rate mailing and the full

applicable amount of postage due for

additional ounces. Additional postage

due for precanceled stamp pieces in a

combined mailing is deducted from the

mailer’s advance deposit account.

2.4 Payment for Precanceled Pieces—

Standard Mail (A)

Pieces with precanceled stamps in a

combined mailing must bear postage in

any denomination of precanceled stamp

permitted in an Automation rate or

Nonprofit Barcoded rate mailing.

Nonprofit postage may appear only on

pieces in a Nonprofit rate mailing that

are eligible for and claimed at a

Nonprofit rate. Additional postage due

for precanceled stamp pieces in a

combined mailing is deducted from the

mailer’s advance deposit account.

2.5 Permit Imprint—First-Class and

Standard Mail (A)

Pieces in a combined mailing may

bear the permit imprint of the mailer or

the mailer’s clients. Postage for the

permit imprint part of a combined

mailing must be paid by the advance

deposit account maintained or

combined mailings. Postage is deducted

only from this account, regardless of the

permit numbers or company permit

imprints on pieces in a combined

mailing.

R Rates and Fees

R000 Stamps and Stationery

1.0 PLAIN STAMPED ENVELOPES

Quantity and price

Kind Size 1 Denomination

or value

Each (less

than 500) 500 1,000

Regular ................................................................................. 63⁄4 $0.32 $0.38 $168.20 $336.40

10 0.32 0.38 172.00 344.00

Single ................................................................................... 63⁄4 0.32 0.38 169.00 338.00

Window ................................................................................. 10 0.32 0.38 173.00 346.00

Special .................................................................................. 63⁄4 0.32 0.38 170.50 341.00

Regular 2 ............................................................................... 10 0.32 0.38 175.00 350.00

Bulk Rate:

Regular .......................................................................... 10 0.10 ........................ 62.00 124.00

Nonprofit ........................................................................ 63⁄4 0.05 ........................ 33.20 66.40

Regular .......................................................................... 10 0.05 ........................ 37.00 74.00

Nonprofit ........................................................................ 63⁄4 0.05 ........................ 34.00 68.00

Sngl. Wndw ................................................................... 10 0.05 ........................ 38.00 76.00

1Size 10 includes all intermediate sizes through 10.

2Envelopes with multicolor indicia such as a Love stamp or a hologram.

2.0 PERSONALIZED STAMPED

ENVELOPES

Quantity and price

Kind Size 1 Denomination

or value 50 500 1,000

Regular ................................................................................. 63⁄4 $0.32 $19.00 $172.60 $345.20

10 0.32 19.20 176.40 352.80

Single ................................................................................... 63⁄4 0.32 19.10 173.40 346.80

Window ................................................................................. 10 0.32 19.30 177.40 354.80

Special .................................................................................. 63⁄4 0.32 19.00 174.90 349.80

Regular 2 ............................................................................... 10 0.32 19.20 179.40 358.80

Bulk Rate:

Regular .......................................................................... 10 0.10 ........................ 66.40 132.80

Nonprofit ........................................................................ 63⁄4 0.05 ........................ 37.60 75.20
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66699

Quantity and price

Kind Size 1 Denomination

or value 50 500 1,000

Regular .......................................................................... 10 0.05 ........................ 41.40 82.80

Nonprofit ........................................................................ 63⁄4 0.05 ........................ 38.40 76.80

Sngl. Wndw ................................................................... 10 0.05 ........................ 42.40 84.80

1Size 10 includes all intermediate sizes through 10.

2Envelopes with multicolor indicia such as a Love stamp or a hologram.

3.0 POSTAL CARDS

Postal cards in sheets, per sheet—

$8.40.

Denomination Description

$0.21 ..... Domestic regular or commemorative, cut single card.

0.21 ....... Domestic regular, sheet of 40.

0.42 ....... Domestic regular, double replypaid card.

4.0 POSTAL STAMPS

Purpose Form Denomination

Regular Postage ................ Panes of up to 100 ............ $0.01, .02, .03, .04, .05, .10, .20, .23, .25, .29, .30, .32, .35, .40, .45, .46, .50, .52,

.55, .60, .75, .78, $1, $2, $3, $5, $10.75.

Booklets .............................. $0.20 ($2.00 booklet), $0.32 ($3.20 or $6.40 booklets).

Coils of 100 $0.20, .23 (additional oz. postage), .32..

Coils of 500 ........................ $0.01, .02, .03, .04, .05, .10, .20, .23, .32, $1.

Coils of 3,000, Coals of

10,000.

$0.01, .02, .03, .04, .05, .10, .20, .23, .32 $0.05, .32.

Precanceled Postage—Bulk

Rate First-Class and

Standard Mail (A).

Coil of 500, 3,000, and

10,000.

Various nondenominated; available only to permit holders.

Comemorative .................... Panes of up to 50 .............. $0.32 or other denominations, including international rates, as announced.

20-Stamp Booklets ............. $0.32 ($6.40. booklets).

R100 First-Class Mail

1.0 RETAIL SINGLE-PIECE RATES

1.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110:

Single—$0.21 each

Double—0.42 ($0.21 each part)

1.2 Letters, Flats, and Parcels

Letters, flats, and parcels (i.e., matter

not eligible for card rates); surcharge

might apply under 9.0:

First ounce or fraction of an ounce—

$0.32

Each additional ounce or fraction of an

ounce—0.23

2.0 RETAIL PRESORT RATES

2.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110: $0.190 each.

2.2 Letters, Flats, and Parcels

Letters, flats, and parcels (i.e., matter

not eligible for card rates); surcharge

might apply under 9.0:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.300

(For pieces weighing more than 2

ounces)—0.254

Each additional ounce or fraction of an

ounce—0.230

3.0 AUTOMATION BASIC RATES

3.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110: $0.175 each.

3.2 Letter-Size Pieces

Letter-size pieces other than cards:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.270

(For pieces weighing more than 2

ounces)—0.224

Each additional ounce or fraction of an

ounce—0.230

3.3 Flat-Size Pieces

Surcharges might apply under 9.0:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.290

(For pieces weighing more than 2

ounces)—0.244

Each additional ounce or fraction of an

ounce—0.230

4.0 AUTOMATION 3–DIGIT RATES

4.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110: $0.155 each.

4.2 Letter-Size Pieces

Letter-size pieces other than cards:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.250

(For pieces weighing more than 2

ounces)—0.204

Each additional ounce or fraction of an

ounce—0.230

5.0 AUTOMATION 5–DIGIT RATES

5.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110: $0.140 each.

5.2 Letter-Size Pieces

Letter-size pieces other than cards:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.235

(For pieces weighing more than 2

ounces)—0.189

Each additional ounce or fraction of an

ounce—0.230
66700 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

6.0 AUTOMATION 3/5 RATES (FLATSIZE PIECES)

Surcharges might apply under 9.0:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.270

(For pieces weighing more than 2

ounces)—0.224

Each additional ounce or fraction of an

ounce—0.230

7.0 AUTOMATION CARRIER ROUTE

RATES

7.1 Cards

Single and double postal cards and

postcards meeting the standards in C100

and E110: $0.137 each.

7.2 Letter-Size Pieces

Letter-size pieces other than cards:

First ounce or fraction of an ounce:

(For pieces weighing not more than 2

ounces)—$0.232

(For pieces weighing more than 2

ounces)—0.186

Each additional ounce or fraction of an

ounce—0.230

Retail Automation

Singlepiece Presort Basic (letters)3-digit (letters)5-digit (letters)

Carrier

route (letters)

Basic

(flats) 3/5 (flats)

Letters, flats, and parcels weight not

over (ounces):

1 1 .............................................. $0.32 $0.300 $0.270 $0.250 $0.235 $0.232 $0.290 $0.270

2 ................................................ 0.55 0.530 0.500 0.480 0.465 0.462 0.520 0.500

3 ................................................ 0.78 0.714 0.684 0.664 0.649 0.646 0.704 0.684

4 ................................................ 1.01 0.944 0.914 0.894 0.879 0.876 0.934 0.914

5 ................................................ 1.24 1.175 (5) (3) (3) (3) 1.164 1.144

6 ................................................ 1.47 1.404 (3) (3) (3) (3) 1.394 1.374

7 ................................................ 1.70 1.634 (3) (3) (3) (3) 1.624 1.604

8 ................................................ 1.93 1.864 (3) (3) (3) (3) 1.854 1.834

9 ................................................ 2.16 2.094 (3) (3) (3) (3) 2.084 2.064

10 .............................................. 2.39 2.324 (3) (3) (3) (3) 2.314 2.294

11 .............................................. 2.62 2.554 (3) (3) (3) (3) 2.544 2.524

Postcards Postal Cards:

Single ........................................ 0.21 0.190 0.175 0.155 0.140 0.137 .................. ..................

Double 2 .................................... 0.42 0.380

1Surcharges might apply.

2 Rates shown apply to each single or double postcard when originally mailed; reply half of double postcards must bear full postage at applicable rates when returned. 3Weight not to exceed 3.4383 oz.

Summary of First-Class Rates

[Renumber current 10.0 as 8.0; no

change in text.]

9.0 NONSTANDARD SURCHARGE

Retail single-piece rate pieces, each

$0.11.

Retail Presort and Automation rate

pieces, each: $0.05.

[Renumber current 12.0 through 14.0 as

10.0 through 12.0; no change in text.]

R200 Periodicals

[Renumber current 1.0 through 7.0 as

2.0 through 8.0; insert new 1.0 and

revise current text as shown below:]

1.0 PUBLICATIONS SERVICE RATES

1.1 Pound Rates

Pound rates, per pound or fraction:

Zone Rate

Delivery Office .................................. $0.108

SCF ................................................... 0.129

1 & 2 ................................................. 0.150

3, 4 & 5 ............................................. 0.193

6, 7 & 8 ............................................. 0.311

1.2 Piece Rates

Per addressed piece:

Presort level Rate

Basic ................................................. $0.147

Carrier Route .................................... 0.083

1.3 Delivery Office Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the delivery

office zone rate, the discount is $0.021.

1.4 SCF Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the SCF zone

rate, the discount is $0.011.

2.0 REGULAR RATES

2.1 Pound Rates

Pound rates are:

For the nonadvertising portion—

$0.194 per pound or fraction.

For the advertising portion, per pound

or fraction:

Zone Rate

Delivery Office .................................. $0.218

SCF ................................................... 0.239

1 & 2 ................................................. 0.259

3 ........................................................ 0.268

4 ........................................................ 0.294

5 ........................................................ 0.332

6 ........................................................ 0.372

Zone Rate

7 ........................................................ 0.420

8 ........................................................ 0.462

2.2 Piece Rates

Per addressed piece:

Presort level Regular

Barcoded

(lettersize)

Barcoded

(flat-size)

Basic .......... $0.272 $0.226 $0.237

3/5 .............. 0.217 0.188 0.188

Carrier route 0.166

High density 0.159

Saturation ... 0.146

2.3 Nonadvertising Adjustment

For each 1% of nonadvertising

content, the nonadvertising adjustment

is $0.00066 per piece.

2.4 Delivery Office Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the delivery

office zone rate, the discount is $0.021.

2.5 SCF Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the SCF zone

rate, the discount is $0.011.

* * * * *
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66701

6.0 SCIENCE-OF-AGRICULTURE

RATES

6.1 Pound Rates

Pound rates are:

For the nonadvertising portion—

$0.194 per pound or fraction.

For the advertising portion, per pound

or fraction:

Zone Rate

Delivery Office .................................. $0.135

SCF ................................................... 0.143

1&2 ................................................... 0.159

3 ........................................................ 0.268

4 ........................................................ 0.294

5 ........................................................ 0.332

6 ........................................................ 0.372

7 ........................................................ 0.420

8 ........................................................ 0.462

6.2 Piece Rates

Per addressed piece:

Presort level Regular

Barcoded

(lettersize)

Barcoded

(FlatSize)

Basic .......... $0.272 $0.226 $0.237

3/5 .............. 0.217 0.188 0.188

Carrier route 0.166

High density 0.159

Saturation ... 0.146

6.3 Nonadvertising Adjustment

For each 1% of nonadvertising

content, the nonadvertising adjustment

is $0.00066 per piece,

6.4 Delivery Office Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the delviery

office zone rate, the discount is $0.021.

6.5 SCF Zone Pieces

For each addressed piece claimed in

the pound-rate portion at the SCF zone

rate, the discount is $0.011.

7.0 APPLICATION FEES

Original entry’’$305.00.

Publications Service entry—$305.00

News agent registry’’$50.00.

Additional entry’’$85.00.

Reentry’’$50.00.

[Delete current R300 and R400, revise and

redesignate text of current R300 and R400 as

parts of new R600 as shown below; no

changes in R500.]

R600 Standard Mail

1.0 REGULAR STANDARD MAIL

SINGLE-PIECE RATES

Weight Rate

Not exceeding 1 oz ............................ $0.32

Over 1 oz., but not exceeding 2 oz .... 0.55

Over 2 oz., but not exceeding 3 oz .... 0.78

Over 3 oz., but not exceeding 4 oz .... 1.01

Over 4 oz., but not exceeding 5 oz .... 1.24

Over 5 oz., but not exceeding 6 oz .... 1.47

Over 6 oz., but not exceeding 7 oz .... 170

Over 7 oz., but not exceeding 8 oz .... 1.93

Over 8 oz., but not exceeding 9 oz .... 2.16

Over 9 oz., but not exceeding 10 oz .. 2.39

Over 10 oz., but not exceeding 11 oz 2.62

Over 11 oz., but not exceeding 13 oz 2.90

Over 13 oz., but not less than 16 oz . 2.95

2.0 KEYS AND IDENTIFICATION

DEVICES

Weight Rate

Not exceeding 2 oz ............................ $0.99

Over 2 oz., but not exceeding 4 oz .... 1.54

Over 4 oz., but not exceeding 6 oz .... 2.09

Over 6 oz., but not exceeding 8 oz .... 2.64

Over 8 oz., but not exceeding 10 oz .. 3.19

Over 10 oz., but not exceeding 12 oz 3.74

Over 12 oz., but not exceeding 14 oz 4.29

Over 14 oz., but less than 16 oz ........ 4.84

3.0 REGULAR STANDARD MAIL

BULK RATES

3.1 Letter-Size Minimum Per Piece

Rates—Pieces 0.2067 lb. (3.3071 oz.) or

less

Entry discount Basic 3/5

None ................................. $0.261 $0.219

BMC .................................. 0.248 0.206

SCF ................................... 0.244 0.202

3.2 Nonletter-Size Minimum Per Piece

Rates—Pieces 0.2067 lb. (3.3071 oz.) or

less

Entry discount Basic 3/5

None ................................. $0.305 $0.237

Entry discount Basic 3/5

BMC .................................. 0.292 0.0224

SCF ................................... 0.288 0.220

3.3 Piece/Pound Rates—Pieces More

Than 0.2067 lb. (3.3071 oz.)

Basic 3/5

Per Piece Rates* .............. $0.163 $0.095

Per Pound Rates* (incl.

entry discount if appl.): plus: plus:

None .............................. $0.687 $0.687

BMC .............................. 0.626 0.626

SCF ............................... 0.606 0.606

*Each piece is subject to both a piece and a

pound rate.

4.0 ENHANCED CARRIER ROUTE

STANDARD MAIL BULK RATES

4.1 Minimum Per Pieces Rates—

Pieces 0.2059 lb. (3.2941 oz.) or less

Entry discount Basic High

density

Saturation

None ................. $0.155 $0.148 $0.135

BMC .................. 0.142 0.135 0.122

SCF ................... 0.137 0.130 0.177

Delivery Unit ..... 0.132 0.125 0.112

4.2 Piece/Pound Rates—Pieces More

Than 0.2059 lb. (3.2941 oz.)

Basic High

density

Saturation

Per Piece

Rates* ............ $0.050 $0.043 $0.030

Per Pound

Rates* (incl.

entry discount

if appl.): plus plus plus

None .............. 0.510 0.510 0.510

BMC .............. 0.446 0.446 0.446

SCF ............... 0.425 0.425 0.425

Delivery Unit .. 0.399 0.399 0.399

*Each piece is subject to both a piece and

a pound rate.

5.0 AUTOMATION STANDARD MAIL

BULK RATES

5.1 Letter-Size Minimum Per Piece

Rates—Pieces 0.2059 lb. (3.2941 oz.) or

Less

Entry discount Basic 3-Digit 5-Digit Carrier route

None ................................................................................................................. $0.175 $0.168 $0.510 $0.141

BMC ................................................................................................................. 0.162 0.155 0.137 0.128

SCF .................................................................................................................. 0.158 0.151 0.133 0.124

Delivery Unit ..................................................................................................... ........................ ........................ ........................ 0.119
66702 Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules

5.2 Flat-Size Minimum Per Piece

Rates—Pieces 0.2059 lb. (3.2941 oz.) or

Less

Entry discount Basic 3/5

None ................................. $0.237 $0.190

BMC .................................. 0.224 0.177

SCF ................................... 0.220 0.173

5.3 Flat-Size Piece/Pound Rates—

Pieces More Than 0.2059 lb. (3.2941

oz.)

Basic 3/5

Per Piece Rates * ............. $0.132 $0.085

Per Pound Rates * incl.

entry discount if appl.): plus plus

None .............................. 0.510 0.510

BMC .............................. 0.449 0.449

Basic 3/5

SCF ............................... 0.429 0.429

*Each piece is subject to both a piece and

a pound rate.

6.0 NONPROFIT STANDARD MAIL

BULK RATES

6.1 Letter-Size Minimum Per Piece

Rates—Pieces 0.2149 lb. (3.4383 oz.) or

Less

Nonautomation rates Automation rates

Entry discount Basic 3/5 Carrier

route

Saturation W–SBasic

ZIP+4 3/5 ZIP+4 Basicbarcoded

3-digit

barcoded

5-digit

barcoded

None ............................................. $0.124 $0.111 $0.086 $0.083 $0.117 $0.107 $0.106 $0.101 $0.093

BMC ............................................. 0.112 0.099 0.074 0.071 0.105 0.095 0.094 0.089 0.081

SCF .............................................. 0.106 0.093 0.068 0.065 0.099 0.089 0.088 0.083 0.075

Delivery Unit ................................. ................ ................ 0.063 0.060 ................ ................ ................ ................ ................

Note: See C810 for additional weight restrictions for automation rates.

6.2 Nonletter-Size Minimum Per Piece

Rates—Pieces 0.2149 lb. (3.4383 oz.) or

Less

Nonautomation rates Automation rates

Entry discount Basic 3/5 Carrier

route

125–PC

W–S

Saturation

W–S

Basic

ZIP+4

3/5

ZIP+4

Basic

barcoded

3-digit

barcoded

3/5-digit

barcoded

None .......................................... $0.175 $0.161 $0.128 $0.126 $0.121 .............. .............. $0.149 ............... $0.143

BMC .......................................... 0.163 0.149 0.116 0.114 0.109 .............. .............. 0.137 ............... 0.131

SCF ........................................... 0.157 0.143 0.110 0.108 0.103 .............. .............. 0.131 ............... 0.125

Delivery Unit .............................. .............. .............. 0.105 0.103 0.098 .............. .............. ............... ............... ...............

Note: Each piece is subject to both a piece and a pound rate. Automation rates are available only for automation-compatible flats (see C820).

6.3 Piece/Pound Rates—Pieces More Than 0.2149 lb. (3.4383 oz.)

Nonautomation rates Automation rates

Basic 3/5 Carrier

route

125–PC

W–S

Saturation W–

S

Basic

ZIP+4

3/5

ZIP+4

Basic

barcoded

3-Digit

barcoded

3/5-Digit

barcoded

Per Piece Rates* ....................... $0.074 $0.060 $0.027 $0.025 $0.020 .............. .............. $0.048 ............... $0.042

Per pound rates *(incl. entry

discount if appl.): plus plus plus plus plus .............. .............. plus ............... plus

None ...................................... 0.470 0.470 0.470 0.470 0.470 .............. .............. 0.470 ............... 0.470

BMC ....................................... 0.410 0.410 0.410 0.410 0.410 .............. .............. 0.410 ............... 0.410

SCF ........................................ 0.386 0.386 0.386 0.386 0.386 .............. .............. 0.386 ............... 0.386

Delivery Unit .......................... .............. .............. 0.362 0.362 0.362 .............. .............. ............... ............... ...............

*Each piece subject to both a piece and a pound rate. Automation rates are available only for automation-compatible flats (see C820).

7.0 PARCEL POST

[Insert text and rates from current

R400.1.0 with no change.]

8.0 BOUND PRINTED MATTER

8.1 Single-Piece Rates

[Insert text and rates from current

R400.2.0 with no change.]

8.2 Bulk Rates

[Insert text and rates from current

R400.3.0 with no change.]

8.3 Bulk Rate Computed Postage

Amount With Postage Affixed

[Insert text and rates from current

R400.4.0 with no change.]

9.0 SPECIAL STANDARD MAIL

RATES

[Insert text and rates from current

R400.5.0 with no change.]

10.0 LIBRARY RATES

[Insert text and rates from current

R400.6.0 with no change.]

11.0 FEES

11.1 Per 12–Month Period

a. Regular, Enhanced Carrier Route,

Automation, and Nonprofit Bulk

Rates—$85.00.

b. Parcel Post Destination BMC Rate—

$85.00.

c. Presorted Special Standard Mail—

$85.00.

11.2 Address Correction Service

Manual, per notice issued—$0.50.

Automated, per notice issued—$0.20.
Federal Register / Vol. 60, No. 246 / Friday, December 22, 1995 / Proposed Rules 66703

11.3 Pickup

Parcel Post only, per occurrence—

$4.95.

12.0 NONSTANDARD SURCHARGE

Applicable to Regular Single-Piece

rate pieces only, each—$0.11.

S SPECIAL SERVICES

S000 Miscellaneous Services

* * * * *

S020 Money Orders and Other

Services

[Retitle 1.0, 2.0, and 3.0 as ‘‘Issuing

Money Orders,’’ ‘‘Cashing Money

Orders,’’ and ‘‘Use of the Federal

Reserves System,’’ respectively; add

new 4.0, as shown below.]

4.0 NONPOSTAL SERVICES

4.1 Bird Stamps

Migratory-bird hunting and

conservation stamps are required by

federal law for the hunting of migratory

birds, such as ducks and geese. As a

convenience to the public, these stamps

are sold at all post offices in CAGs A–

J and (based on demand) at designated

offices in CAGs K and L. These facilities

act as agents of the federal government

for this function. Blocks composed of

two or more attached unused stamps,

sold on consignment to any person but

not resold, may be redeemed at any time

on or before the last day of the stamp

year. Stamps validated by signature or

stamps that appear removed from a

hunting license or identification card

are not accepted.

[Redesignate current S030.2.0, 3.0, and

4.0 as S020.4.2, 4.3, and 4.4,

respectively; no other changes in text;

delete current S030.]

S070 Mixed Classes

[In 1.1, replace ‘‘third- or fourth-class

mail’’ with ‘‘Standard Mail’’; in 1.2,

replace ‘‘third- and fourth-class mail’’

with ‘‘Standard Mail’’; no other change

in text.]

S500 Special Services for Express Mail

[In 3.0, replace ‘‘third- or fourth-class

mail’’ with ‘‘Standard Mail’’; no other

change in text.]

* * * * *

S913 Insured Mail

[In 1.2a, replace ‘‘third- and fourth-class

mail’’ with ‘‘Standard Mail’’; in 1.2b,

replace ‘‘third- or fourth-class mail,’’

‘‘Third-Class Mail,’’ and ‘‘Fourth-Class

Mail’’ with ‘‘Standard Mail,’’ ‘‘Standard

Mail (A)’’, and ‘‘Standard Mail (B),’’

respectively; no other change in text.]

S914 Certificate of Mailing

[In 1.2, replace ‘‘First-, third-, and

fourth-class’’ with ‘‘First-Class and

Standard Mail’’; in 1.6, replace ‘‘thirdclass mail’’ with ‘‘Standard Mail (A)’’; in

2.3, replace ‘‘First- and third-class’’ with

‘‘First-Class and Standard Mail (A)’’; no

other change in text.]

* * * * *

S917 Return Receipt for Merchandise

[In 1.2, replace ‘‘third-class’’ and

‘‘special fourth-class’’ with ‘‘Standard

Mail (A)’’ and ‘‘Special Standard Mail,’’

respectively; in 1.3, replace ‘‘thirdclass’’ and ‘‘third-class and fourth-class’’

with ‘‘Standard Mail (A)’’ and

‘‘Standard Mail,’’ respectively; no other

change in text.]

S921 Collect on Delivery (COD) Mail

[In 1.2, replace ‘‘First-, third-, and

fourth-class’’ with ‘‘First-Class and

Standard Mail’’; no other change in

text.]

* * * * *

S923 Merchandise Return Service

[In 1.1, replace ‘‘third-class and fourthclass’’ and ‘‘special fourth-class’’ with

‘‘and Standard Mail’’ and ‘‘Special

Standard Mail,’’ respectively; in 1.7,

replace ‘‘third-class, and fourth-class’’

with ‘‘and Standard Mail’’; in 1.10,

replace ‘‘single-piece third-class or

fourth-class parcel post’’ with ‘‘Standard

Mail single-piece Regular or parcel

post’’; in 1.11, replace ‘‘or third- or

fourth-class’’ and ‘‘Special fourth-class’’

with ‘‘Standard Mail (A) or Standard

Mail (B)’’ and ‘‘Special Standard Mail,’’

respectively; in 3.2, replace ‘‘First-,

third-, or fourth-class’’ with ‘‘First-Class

or Standard Mail’’; in 4.0, replace

‘‘third- or fourth-class,’’ ‘‘Third-Class

Mail,’’ and ‘‘Fourth-Class Mail’’ with

‘‘Standard Mail,’’ ‘‘Standard Mail (A)’’,

and ‘‘Standard Mail (B),’’ respectively;

in 4.7 and 5.6d, replace ‘‘third- or

fourth-class’’ with ‘‘Standard Mail’’; in

4.10, replace ‘‘third- and fourth-class’’

with ‘‘Standard Mail’’; no other change

in text.]

S930 Handling

[In 2.2, replace ‘‘third- and fourth-class

mail’’ with ‘‘Standard Mail’’; in 3.2,

replace ‘‘both third-class mail and

fourth-class mail’’ with ‘‘Standard

Mail’’; no other change in text.]

[FR Doc. 95–31040 Filed 12–18–95; 10:32

am]

BILLING CODE 7710–12–P