[Federal Register Volume 75, Number 172 (Tuesday, September 7, 2010)]
[Rules and Regulations]
[Pages 54287-54290]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22134]


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POSTAL SERVICE

39 CFR Part 111


Submission of Electronic Documentation With Comailed and 
Copalletized Mailings

AGENCY: Postal Service<SUP>TM</SUP>.

ACTION: Final rule.

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SUMMARY: The Postal Service is revising Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]) 705 and 707 
to require mailers preparing comailed or copalletized mailings, or mail 
owners who contribute mailpieces to a consolidated comailed or 
copalletized mailing, to submit electronic documentation to the 
USPS[supreg] by an approved method.

DATES: Effective Date: January 2, 2011.

FOR FURTHER INFORMATION CONTACT: David Guinther at 202-268-7769 or 
Kevin Gunther at 202-268-7208.

SUPPLEMENTARY INFORMATION: The support of electronic documentation for 
a comailed and copalletized mailing enhances the electronic visibility 
of the mailpiece, allows for a reduction in postal handling, and 
improves efficiency of USPS processing.
    The Postal Service published a proposed rule Federal Register 
notice, Submission of Electronic Documentation with Comailed and 
Copalletized Mailings (75 FR 32143-32145) on June 7, 2010.
    This final rule will require comailed and copalletized mailings to 
include Intelligent Mail[supreg] tray labels on trays or sacks. 
Intelligent Mail container placards must also be used on pallets or 
similar containers when making comailed or copalletized mailings.
    The Postal Service will accept piece-level electronic documentation 
through either of two methods--Mail.dat[supreg] or Mail.XML[supreg]. 
The original container data, included in the Mail.dat or Mail.XML file, 
permit the tracking of containers from their origin, through the 
consolidation site, and ultimately into USPS processing. These original

[[Page 54288]]

container data are essential for the generation of standardized 
documentation (i.e. qualification reports) and postage statements for 
comailed or copalletized mailings. Therefore, the Postal Service will 
require mail owners and mailers associated with the preparation and 
presentation of comailed and copalletized mailings to transmit 
electronic documentation to the USPS using properly formatted Mail.dat 
or Mail.XML files. Electronic postage statements prepared through 
Postal Wizard will not fulfill this documentation requirement.
    This final rule will require mailers preparing mailings of letter-
size pieces in trays, which include mailpieces to be incorporated in a 
copalletized mailing, to prepare separate postage statements for the 
portion of the mailing being accepted at the origin site, and separate 
electronic postage statements for the portion being directed to a 
consolidator. Consolidators preparing copalletized mailings of trays 
must prepare electronic documentation showing the assignment of the 
trays with Intelligent Mail tray labels to pallets bearing Intelligent 
Mail container placards. Consolidators of letter-size pieces in trays 
will also be required to dropship copalletized mailpieces at the 
appropriate postal facility in accordance with the entry discount 
claimed at the origin acceptance location.
    Origin mailers preparing mailings of bundles of flats must prepare 
separate postage statements for the portion of the mailing being 
accepted at the origin site, and electronic documentation for that 
portion being directed to a consolidator. For mailings of bundles of 
flats, the electronic data will be used to generate electronic postage 
statements and payment at the consolidator site.
    DMM 705.22.0 currently requires electronic documentation with 
mailings (including comailed or copalletized mailings) that include 
full-service Intelligent Mail letters or flats. These standards have 
not changed. Mailers who prepare full-service Intelligent Mail pieces 
that will later be included in a copalletized mailing must prepare 
these pieces to meet the requirements for full-service Intelligent 
Mail, including the use of an approved electronic method to transmit 
postage statements and mailing documentation to the USPS. Consolidators 
must then ensure that mailings including any full-service mailpieces 
meet all of the requirements for the full-service automation option 
specified in DMM 705.22.0.
    This final rule will require Periodicals mailers to submit 
electronic documentation for each comailed and/or copalletized mailing, 
identifying each title and version (or edition) in the mailing. For 
mailings that are entered at origin, and later copalletized at a 
consolidation site, the mail owner or preparer must submit electronic 
documentation (Mail.dat or Mail.XML) for the copalletized portion of 
the mailing. For copalletized Periodicals mail, electronic postage 
statements and payment must be entered at the consolidator's site.
    Electronic documentation submitted at the origin site must indicate 
which bundles, trays, or sacks will be sent to a consolidator for 
copalletization. The standardized documentation and postage statements 
must then be available in PostalOne! <SUP>[reg]</SUP> for review by 
USPS acceptance personnel when the electronic documentation for the 
copalletized portion of the mailing job is updated by the consolidator. 
The origin site is required to transmit electronic documentation to the 
PostalOne! system before the consolidator's electronic documentation 
and electronic postage statements are transmitted to the USPS. When 
copalletizing letters in trays, postage statements at the origin site 
must be finalized before the consolidator's electronic documentation is 
transmitted to the USPS.
    With this final rule, the consolidator will be responsible for 
updating the electronic documentation from the mail owner or preparer 
for that portion of the mailing going to the consolidation site. 
Mailers consolidating multiple mailings on pallets must use the 
electronic data received from the originator of the mailing to create 
new electronic data. These electronic data will then be used to 
generate the original container data, indicating the origin of the 
bundles, trays or sacks comprising the copalletized mailing.
    The Postal Service revises portions of DMM 705.8.0 to refer to the 
copalletization of letter-size pieces within those sections.
    Comments Received: The Postal Service received five comments in 
response to the proposed rule, some addressing multiple issues. These 
comments are summarized as follows:
    Two commenters referenced a requirement in the preamble of the 
proposed rule Federal Register notice regarding the payment of postage 
at the consolidator's site when making copalletized mailings of letters 
in trays. This language has been revised in the final rule to clarify 
that postage payment for copalletized mailings of letters in trays will 
be at the origin site and not at the consolidator's mailing site.
    One commenter questioned why it would be necessary to use 
Intelligent Mail tray labels and container placards with full-service 
mailpieces that are intended to be included in a copalletized mailing. 
In response, we clarify that mailers preparing full-service pieces that 
are expected to be included in a copalletized mailing may omit 
Intelligent Mail pallet placards from the containers used to transport 
these pieces to the consolidator, as long as these pieces are in full 
compliance with DMM 705.22 at the time the mail is presented to the 
USPS for mailing. To ensure effective and consistent USPS verification, 
Intelligent Mail tray labels will be required to be placed on trays, or 
similar containers, prior to full-service mailpieces leaving the origin 
facility.
    One commenter requested information on how these new standards 
would relate to mixed-class comail mailings within the PostalOne! 
system. At this time, the Postal Service is not planning any change to 
current processes for the submission or processing of postage 
statements from mailers participating in the mixed class comail pilot. 
General use standards for mixed-class comail are still under 
consideration within the USPS; and no decision has been made regarding 
their implementation.
    Another commenter requested that the USPS relax the requirement for 
mailers at the origin site to prepare separate postage statements for 
the portion of the mailing being entered at origin from that being 
directed to a consolidator. This commenter states that most mailers 
participating in copalletized mailings are able to provide a summary 
listing that specifies which trays are being entered at origin and 
which will be sent to the consolidator. The USPS will investigate the 
feasibility of using mailer-provided documentation in lieu of separate 
postage statements and may consider this option in a future rulemaking.
    One commenter requested a minimum 60-day transitional window 
between the PostalOne! implementation date and the effective date for 
these new standards. In response, we will delay the effective date 
until January 2, 2011. This should give mailers sufficient time to make 
any necessary software changes and to test their systems prior to the 
effective date.
    Two comments referenced language in the proposal that would require 
consolidators to prepare mailings to the finest presort level possible, 
and to dropship mailpieces in accordance with the entry discount 
claimed at the origin acceptance site. One commenter stated that their 
current copalletization

[[Page 54289]]

agreement affords them the option to selectively palletize to the 
sectional center facility (SCF), area distribution center (ADC) (for 
Periodicals), or network distribution center (NDC) as conditions 
dictate and not necessarily by the available volume for a particular 
pallet level. Another commenter related the necessity for a 
consolidator to have flexibility in deciding the final dropship 
destination for the mailpieces comprising the copalletized mailing, 
without regard to the entry discount taken by the mail owner at the 
origin site. Although such policies may have been a commonly accepted 
practice in the past, they will be discontinued with the effective date 
of these standards. For clarity, we also revised the language in this 
final rule to state that the presort level of mailpieces in 
copalletized mailings of Standard Mail letters in trays must accurately 
reflect the postage and entry discount claimed at the origin site. It 
was suggested that consolidators may have the ability to process 
electronic transactions directly into PostalOne! to offset the postage 
deficiency resulting from mailpieces dropped less deeply into the USPS 
network than that claimed by the mail owner at the origin site. The 
Postal Service will investigate the practicality of adding this 
functionality in PostalOne! and may consider providing this option at a 
future date.
    One commenter requested enhancements to PostalOne! to allow for the 
generation of a ``master statement'' that could include the mailpieces 
being presented at origin as well as those being directed to the 
consolidator. This request is outside the scope of this particular 
rulemaking and will be forwarded to the PostalOne! program management 
office for review.
    The Postal Service hereby adopts the following changes to the 
Mailing Standards for the United States Postal Service, Domestic Mail 
Manual (DMM), which is incorporated by reference in the Code of Federal 
Regulations. See 39 CFR Part 111.1

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
Accordingly, 39 CFR Part 111 is amended as follows:

PART 111--[AMENDED]

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

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


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

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

* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

8.0 Preparing Pallets

* * * * *

[Revise title of 8.7 as follows:]

8.7 Copalletized, Combined, or Mixed-Price Level Palletized Mailings

8.7.1 General

[Revise 8.7.1 as follows:]

    Copalletized, combined, or mixed-price level palletized mailings 
of letter-size or flat-size pieces must be prepared under the 
standards for the class of mail, subject to specific authorization 
by Business Mailer Support when required. The following conditions 
apply when making copalletized mailings:
    a. Postage statements and mailing documentation must be 
transmitted to the USPS using an approved electronic method.
    b. Intelligent Mail tray labels must be used on trays or sacks, 
and Intelligent Mail container placards must be used on pallets or 
similar containers, under 708.6.5 and 708.6.6.
    c. If consolidating multiple mailings on pallets, update the 
electronic data for each of the original mailings. This updated data 
must be reflected in the electronic data transmitted to the USPS.
    d. Meet postage payment requirements as specified by Business 
Mailer Support.
* * * * *

8.7.3 Periodicals Publications

[Revise 8.7.3 by adding a new third sentence as follows:]

     * * * Postage for copalletized mailings of flat-size 
Periodicals must be paid at the consolidator's site. * * *
* * * * *

8.7.4 Standard Mail

[Revise 8.7.4 by adding new third and fourth sentences as follows:]

     * * * For Standard Mail letter-size pieces, the presort level 
of the mailpieces in the copalletized mailing must accurately 
reflect the postage and entry discount paid at the origin site; and 
will not always result in the finest pallet presort level possible. 
Origin mailers participating in a copalletized mailing of Standard 
Mail letters in trays must prepare a separate postage statement for 
the portion entered at the origin site and another postage statement 
for the portion directed to the consolidator.
* * * * *

8.8 Basic Uses

    These types of mail may be palletized:
* * * * *

[Revise 8.8 by re-sequencing items f through i as the new g through 
j and adding a new item f as follows:]

    f. Copalletized multiple letter-size mailings, prepared in 
trays, subject to 8.0.
* * * * *

[Revise title of 8.16 as follows:]

8.16 Copalletized Letter-size and Flat-size Pieces--Periodicals or 
Standard Mail

8.16.1 Basic Standards

[Revise 8.16.1 as follows:]

    Copalletized letter-size and flat-size mailings must meet the 
applicable standards in 8.0. In addition, if copalletized under 
10.0, 12.0, or 13.0, the applicable provisions of that preparation 
option must also be met. Any combination of automation mailings and 
nonautomation mailings is subject to the restrictions in 8.14. Trays 
and bundles in a copalletized mailing qualify for the appropriate 
presort level price, regardless of the presort level for the pallet 
on which they are placed. Mailers participating in copalletized 
mailings must:
    a. Transmit postage statements and mailing documentation to the 
USPS using an approved electronic method.
    b. Use Intelligent Mail tray labels on trays and sacks and 
Intelligent Mail container placards on pallets or similar 
containers, under 708.6.5 and 708.6.6.
    c. If consolidating multiple mailings on pallets, update the 
electronic data for each of the original mailings. These updated 
data must be reflected in the electronic data transmitted to the 
USPS by the consolidator.
    d. Meet postage payment requirements as specified by Business 
Mailer Support.

8.16.2 Periodicals

    Additional standards are as follows:
* * * * *

[Revise 8.16.2 by adding a new item d as follows:]

    d. Postage for copalletized mailings of flat-size Periodicals 
must be paid at the consolidator's site.

8.16.3 Standard Mail

    Additional standards are as follows:
* * * * *

[Revise 8.16.3 by adding a new item f as follows:]

    f. Origin mailers participating in a copalletized mailing of 
Standard Mail letters in trays must prepare a separate postage 
statement for the portion entered at the origin site and another 
postage statement for the portion directed to the consolidator.
* * * * *

707 Periodicals

* * * * *

[[Page 54290]]

27.0 Combining Multiple Editions or Publications

* * * * *

27.5 Documentation

    * * * The following additional standards apply:
* * * * *

[Revise 27.5 by adding a new item c as follows:]

    c. Unless excepted by Business Mailer Support (BMS), mailers 
combining Periodicals publications under 27.1a or 27.1c must 
transmit postage statements and mailing documentation to the USPS 
using a BMS-approved electronic method.

[Renumber current 27.6 through 27.8 as new 27.7 through 27.9 and 
add a new item 27.6 as follows:]

27.6 Additional Standards

    Mailers combining Periodicals publications under 27.1a or 27.1c 
must:
    a. Use Intelligent Mail tray labels on trays and sacks, and 
Intelligent Mail container placards on pallets or similar 
containers, under 708.6.5 and 6.6.
    b. When using a consolidator, prepare a separate postage 
statement for the portion of the mailing accepted at the origin site 
and another statement for that portion directed to a consolidator.
    c. When using a consolidator under 27.1c, pay postage at the 
consolidator's site.
    d. If consolidating multiple mailings on pallets, update the 
electronic data for each of the original mailings. These updated 
data must be reflected in the electronic data transmitted to the 
USPS.
    e. Meet postage payment requirements as specified by Business 
Mailer Support.
* * * * *
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2010-22134 Filed 9-3-10; 8:45 am]
BILLING CODE 7710-12-P