[Federal Register Volume 60, Number 246 (Friday, December 22, 1995)]
[Proposed Rules]
[Pages 66582-66703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31040]




[[Page 66581]]

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Part II





Postal Service





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39 CFR Part 111



Classification Reform; Implementation Standards; Proposed Rule

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

[[Page 66582]]


POSTAL SERVICE

39 CFR Part 111


Classification Reform; Implementation Standards

AGENCY: Postal Service.

ACTION: Proposed rule.

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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- 

[[Page 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 automation-
compatible 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-than-full 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 

[[Page 66584]]
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 walk-
sequence 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 First-Class 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 triple-
stacking. 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 multi-ZIP 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 

[[Page 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 MASS-certified 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 third-class 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 

[[Page 66586]]
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 First-Class (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 CASS-certified 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 PAVE-certified. 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 

[[Page 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 cost-effectiveness 
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 

[[Page 66588]]
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 automation-compatible, 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 automation-compatible 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 

[[Page 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 walk-sequence 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 

[[Page 66590]]
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 First-Class 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 

[[Page 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 First- and 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 rubber-banded 
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 15\3/4\ 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, 7\9/10\ 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 10\1/2\ 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 

[[Page 66592]]
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 

[[Page 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 letter-size 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 right-side-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 less-than-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 

[[Page 66594]]
    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 
less-than-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 automation-compatible 
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 automation-compatible 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 

[[Page 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 
automation-compatible 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 ACT-
tagging 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.

[[Page 66596]]


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 flat-size 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 
automation-compatible 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 Automation-Compatible 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 14\3/4\ inches long by 10\3/4\ 
inches wide. Their depth is 8 inches to the handhold and 11\1/4\ 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 

[[Page 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 First-Class 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 
automation-compatible (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 
First-Class 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 

[[Page 66598]]
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 

[[Page 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-of-date 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. 

[[Page 66600]]

    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 outside-county 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 second-class 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 

[[Page 66601]]
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 second-class 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 
First-Class 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 flat-size 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 
nonautomation-compatible letters have been added for Publications 
Service to require packaging and traying of pieces. Preparation of 
presorted packages is necessary for nonautomation-compatible mail for 
efficient Postal Service processing.
    These two Publications Service letter-size 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 letter-size 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

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BILLING CODE 7710-12-C

[[Page 66617]]


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.
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BILLING CODE 7710-12-C

[[Page 66632]]


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 automation-compatible 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 letter- and 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. 

[[Page 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 fourth-class'' 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.                       
----------------------------------------------------------------------------------------------------------------

 
[[Page 66634]]

* * * * *
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 3\1/2\ 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 fourth-class'' 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 

[[Page 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 inter-BMC/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 First-Class, 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, automation-
compatible 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--LETTER-SIZE 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 
automation-based 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: 4\3/4\ 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 

[[Page 66636]]
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 3\1/2\ inches and 
4\1/4\ 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 <plus-minus>\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 10\1/2\ 
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--FLAT-SIZE 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.
* * * * * 

[[Page 66637]]


D100  First-Class Mail

[In 2.5, replace ``carrier route First-Class, 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 
``second- and 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 ``fourth-class'' 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 
single-piece fourth-class (parcel post, special-fourth-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 ``First-Class 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 ``second-class'' 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 First-Class 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 First-Class, and/or 
Presorted Priority Mail rates. Payment of one fee allows a mailer to 
enter mail at all those rates. 

[[Page 66638]]
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 First-Class 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 
First-Class 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 First-Class 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 First-Class 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 
First-Class 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 

[[Page 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 in-county 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 First-Class 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 ``second-class'' 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 

[[Page 66640]]
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 ``second-class 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 fourth-class 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 in-county 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 in-county 
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 

[[Page 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 letter-size 
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 FLAT-SIZE 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 

[[Page 66642]]
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 
(flat-size 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 walk-sequence rates apply to each walk-
sequenced 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 letter-size 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 Letter-Size 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. 

[[Page 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 walk-sequence 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 walk-sequence 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 letter-size 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 letter-size 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 letter-size 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 letter-size 
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 FLAT-SIZE 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 

[[Page 66644]]
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-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, 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 letter-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 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. 

[[Page 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 package-based 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 non-DPBC 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 Package-Based 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 non-DPBC 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 non-DPBC 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 Package-Based 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 (FLAT-SIZE 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. 

[[Page 66646]]


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 ``second-class 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.]
* * * * * 

[[Page 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 

[[Page 66648]]
    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 

[[Page 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 single-piece 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 

[[Page 66650]]
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 

[[Page 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 recording-
related 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 letter-size pieces for a single 3-
digit area, 

[[Page 66652]]
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 

[[Page 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 letter-size 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 

[[Page 66654]]
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 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.

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 ``other-
than-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 walk-sequence 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 

[[Page 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. 
Walk-sequence 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 less-than-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 

[[Page 66656]]
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. 

[[Page 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 package-based 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 Package-Based 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 Package-Based 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.
* * * * * 

[[Page 66658]]

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 ``second-
class'' 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 
fourth-class'' with ``Periodicals or Standard Mail''; in 7.4, replace 
``special fourth-class'' 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 ``fourth-class'' 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                

[[Page 66659]]
                                                                        
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                  
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:]
* * * * *
    \2\ For 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:]

    \2\ For 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).

[[Page 66660]]

    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:]
* * * * * 

[[Page 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-RT-SORT**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 First-Class, 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. 

[[Page 66662]]


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 (package-based mailings) 
or overflow trays (tray-based 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 pressure-sensitive 
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. 

[[Page 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 letter-size pieces of Automation First-Class and Automation Standard 
Mail, automation-compatible Publications Service and Barcoded rate 
Regular Periodicals, and upgradable Retail First-Class 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 ``First-Class 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 ``second-class'' 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 ``third-
class'' 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, 
automation-compatible Publications Service Periodicals, and Automation 
Standard Mail mailings of letter-size pieces, and Automation First-
Class mailings of flat-size pieces. Barcoded trays labels may be used 
on any other mailing. Mailer-produced 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 
automation-compatible 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 

[[Page 66664]]
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) 
letter-size 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: 10\1/2\ inches.
    b. Flat trays:
    (1) Inside bottom dimensions: 14\3/4\ inches long by 10\3/4\ inches 
wide.
    (2) Height: 8 inches to bottom of handhold, 11\1/4\ 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 USPS-provided 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-than-full ``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 4\1/2\ inches high or 10\1/2\ 
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 

[[Page 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 top-capped 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 triple-stacked 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 triple-stacking 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 
triple-wall 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. 

[[Page 66666]]


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 letter-size 
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 computer-generated 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.

[[Page 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. 

[[Page 66668]]

    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 LETTER-SIZE 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 letter-size 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 computer-generated 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 flat-size 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 

[[Page 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 computer-generated 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-of-travel sequencing is required for Basic Enhanced 
Carrier Route Standard Mail and for Carrier Route Publications Service 
Periodicals (except automation-compatible letter-size pieces). Line-of-
travel 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, 

[[Page 66670]]
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 plant-verified 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 

[[Page 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--LETTER-SIZE 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: 

[[Page 66672]]

    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 walk-sequencing 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. 

[[Page 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 (LETTER-SIZE 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 (LETTER-SIZE 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 

[[Page 66674]]
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 
walk-sequence 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 

[[Page 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 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, ``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 

[[Page 66676]]
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 six-piece 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 
walk-sequence 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.]
* * * * * 

[[Page 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 First-Class 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. 

[[Page 66678]]

    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 loose-pack 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 single-piece 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. 

[[Page 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 
walk-sequencing 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 ``WALK-SEQUENCED 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''LETTER-SIZE 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 

[[Page 66680]]
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 single-piece 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: CR-RTS.
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 

[[Page 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 

[[Page 66682]]
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 

[[Page 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 
automation-compatible 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 

[[Page 66684]]
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. 

[[Page 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 
automation-compatible 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. 

[[Page 66686]]

    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 single-piece 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 Letter-Size 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 tray-based 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 

[[Page 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 
less-than-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 less-than-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 less-than-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-
than-full 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 
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.

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 

[[Page 66688]]
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 ``second- and 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 

[[Page 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 
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.

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 tray-based 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 
less-than-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 less-than-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-
than-full 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 

[[Page 66690]]
(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 tray-based 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 

[[Page 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 ``second- and 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 
outside-county 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 Package-Based 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 tray-based 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 

[[Page 66692]]
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 ``second- and 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 
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.

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, 

[[Page 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 single-piece 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

[[Page 66694]]

    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 Flat-Size 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] third-class'' 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, 

[[Page 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 ``third-class'' 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 
outside-county 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 per-piece 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.]

[[Page 66696]]


P020  Postage Stamps and Stationery

P021  Stationery Bearing Postage

[In 1.1b, replace ``special bulk third-class'' 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 ``third-class,'' ``THIRD-CLASS,'' and ``third-
class'' 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 third-class mail'' with ``First-
Class or Standard Mail (A)''; no other change in text.]

P040  Permit Imprints

[In 2.5 and 3.5b, replace ``bulk third-class 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,'' ``Third-Class,'' ``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 ``third- and fourth-class'' with 
``Standard Mail''; in 5.0 and 5.4, replace ``special fourth-class'' 
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 

[[Page 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 walk-sequence 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'' 

[[Page 66698]]
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 third-class'' 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                                               
-----------------------------------------------------------------------------------------------------------------
                                                   Denomination     Each (less                                  
              Kind                   Size \1\        or value        than 500)          500            1,000    
----------------------------------------------------------------------------------------------------------------
Regular.........................          6\3/4\           $0.32           $0.38         $168.20         $336.40
                                              10            0.32            0.38          172.00          344.00
Single..........................          6\3/4\            0.32            0.38          169.00          338.00
Window..........................              10            0.32            0.38          173.00          346.00
Special.........................          6\3/4\            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...................          6\3/4\            0.05  ..............           33.20           66.40
    Regular.....................              10            0.05  ..............           37.00           74.00
    Nonprofit...................          6\3/4\            0.05  ..............           34.00           68.00
    Sngl. Wndw..................              10            0.05  ..............           38.00           76.00
----------------------------------------------------------------------------------------------------------------
\1\ Size 10 includes all intermediate sizes through 10.                                                         
\2\ Envelopes with multicolor indicia such as a Love stamp or a hologram.                                       

2.0  PERSONALIZED STAMPED ENVELOPES

----------------------------------------------------------------------------------------------------------------
                                               Quantity and price                                               
-----------------------------------------------------------------------------------------------------------------
                                                   Denomination                                                 
              Kind                   Size \1\        or value           50              500            1,000    
----------------------------------------------------------------------------------------------------------------
Regular.........................          6\3/4\           $0.32          $19.00         $172.60         $345.20
                                              10            0.32           19.20          176.40          352.80
Single..........................          6\3/4\            0.32           19.10          173.40          346.80
Window..........................              10            0.32           19.30          177.40          354.80
Special.........................          6\3/4\            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...................          6\3/4\            0.05  ..............           37.60           75.20

[[Page 66699]]
                                                                                                                
    Regular.....................              10            0.05  ..............           41.40           82.80
    Nonprofit...................          6\3/4\            0.05  ..............           38.40           76.80
    Sngl. Wndw..................              10            0.05  ..............           42.40           84.80
----------------------------------------------------------------------------------------------------------------
\1\ Size 10 includes all intermediate sizes through 10.                                                         
\2\ Envelopes 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 reply-paid 
                                     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  Coil of 500, 3,000, and 10,000............  Various nondenominated; 
 and Standard Mail (A).                                                                  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 

[[Page 66700]]

6.0  AUTOMATION 3/5 RATES (FLAT-SIZE PIECES)
    Surcharges might apply under 9.0:

First ounce or fraction of an ounce:
(For pieces weighing not more than 2 ounces)--$0.270
(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                              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Carrier                         
                                                           Single-     Presort       Basic      3-digit     5-digit      route       Basic        3/5   
                                                            piece                  (letters)   (letters)   (letters)   (letters)    (flats)     (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                                                                          
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Surcharges 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.                                                                                                                                  
\3\ Weight 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
7..............................................................    0.420
8..............................................................    0.462
------------------------------------------------------------------------

2.2  Piece Rates

    Per addressed piece:

------------------------------------------------------------------------
                                                      Barcoded  Barcoded
               Presort level                 Regular  (letter-   (flat- 
                                                        size)     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.
* * * * *

[[Page 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:

------------------------------------------------------------------------
                                                      Barcoded  Barcoded
               Presort level                 Regular  (letter-   (Flat- 
                                                        size)     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                    
------------------------------------------------------------------------

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
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

------------------------------------------------------------------------
                                                       High             
              Entry discount                 Basic   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.)

------------------------------------------------------------------------
                                                       High             
                                             Basic   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
----------------------------------------------------------------------------------------------------------------


[[Page 66702]]


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
  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                  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             Carrier   Saturation    Basic                 Basic     3-digit    5-digit 
                   Entry discount                       Basic       3/5       route        W-S       ZIP+4    3/5 ZIP+4   barcoded   barcoded   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                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  3/5-  
                  Entry discount                      Basic      3/5     Carrier  125-PC W- Saturation    Basic      3/5      Basic    3-digit    digit 
                                                                          route       S         W-S       ZIP+4     ZIP+4   barcoded  barcoded  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                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                  3/5-  
                                                      Basic      3/5     Carrier  125-PC W- Saturation    Basic      3/5      Basic    3-Digit    Digit 
                                                                          route       S         W-S       ZIP+4     ZIP+4   barcoded  barcoded  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           plu........  ........      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. 

[[Page 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 ``third-class 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 ``third-class'' 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 fourth-class'' 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