[Federal Register Volume 82, Number 204 (Tuesday, October 24, 2017)]
[Rules and Regulations]
[Pages 49123-49128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22962]


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POSTAL SERVICE

39 CFR Part 111


Address Quality Census Measurement and Assessment Process

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]), to include a 
new method of Move Update verification and assessment procedure for 
evaluating address quality, the ``Address Quality Census Measurement 
and Assessment Process.'' This new procedure is applicable to mailers 
who enter eligible letter- and flat-size pieces of First-Class 
Mail[supreg] and USPS Marketing Mail<SUP>TM</SUP> that meet the 
requirements for Basic or Full Service mailings. In addition, the 
Postal Service is extending no-fee Address Correction Service 
(ACS<SUP>TM</SUP>) to mailers who enter qualifying mailpieces.

DATES: Effective January 21, 2018.

FOR FURTHER INFORMATION CONTACT: Heather Dyer, USPS Mail Entry, Phone: 
(207) 482-7217, Email: <a href="/cdn-cgi/l/email-protection#5a323f3b2e323f287436743e233f281a2f292a29743d352c"><span class="__cf_email__" data-cfemail="97fff2f6e3fff2e5b9fbb9f3eef2e5d7e2e4e7e4b9f0f8e1">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: On June 30, 2017, the Postal Service filed a 
notice of price adjustment with the Postal Regulatory Commission (PRC) 
seeking approval of price and classification changes related to the 
Address Quality Measurement and Assessment Process, and the extension 
of no-fee ACS to mailers who enter qualifying mailpieces.
    On August 23, 2017, the PRC approved the price and classification 
changes related to the Address Quality Assessment and Measurement 
Assessment Process, including the 0.5 percent error threshold, and Move 
Update assessment charge. In addition, the PRC approved extending no-
fee ACS to certain Basic automation and non-automation mailpieces that 
are submitted by qualifying mailers. The prices approved by the PRC are 
available under Docket Number R2017-7 on the PRC's Web site at 
www.prc.gov, and these changes will take effect on January 21, 2018. 
This final rule adopts the conforming changes to the DMM, which were 
previously noticed for public comment in a proposed rule (79 FR 76930-
76931) and two subsequent revisions.
    The Postal Service issued its first revised proposed rule on July 
6, 2016 (81 FR 43965-43971). Subsequently, on February 27, 2017, the 
Postal Service elected to issue a second, revised proposed rule (82 FR 
11871-11878) in order to further clarify the proposal, more thoroughly 
respond to mailer comments, and clearly outline the ways in which the 
proposal had changed since the previous proposed rule. In response, the 
Postal Service received valuable feedback from the mailing industry. 
Although the substance of the Address Quality Census Measurement and 
Assessment Process has not changed since the proposed rule of February 
27, 2017, the Postal Service has buttressed the level of detail

[[Page 49124]]

provided on the mechanics of the Address Quality Census Measurement and 
Assessment Process in DMM 602.5.3, given that it now has obtained 
regulatory approval.
    The following subheadings are intended to provide a snapshot of the 
forthcoming Address Quality Census Measurement and Assessment Process.

Terms

    For purposes of clarification, the Postal Service provides the 
following definitions of several terms used in this document:
    [ssquf] eDoc Submitter: The electronic documentation (eDoc) 
Submitter is determined using the Customer Registration IDentifier 
(CRID) number that is used to upload the eDoc to the Postal Service for 
processing. The eDoc submitter most often is the Mail Preparer but can 
also be the Mail Owner. All results of the Address Quality Measurement 
will be displayed on the scorecards for the eDoc Submitter and Mail 
Owner; however, any additional postage assessments will be presented to 
the eDoc submitter.
    [ssquf] Legal Restraint: Mailers of First-Class Mail pieces who 
assert that they are restricted by law from incorporating Postal 
Service change of address (COA) information onto their mailpieces 
without permission from addressees; these mailers may request Postal 
Service approval to meet the requirements for Move Update by using the 
Legal Restraint alternate method. Such mailers must be able to clearly 
demonstrate how the use of a primary Move Update method would violate 
the law. For details, consult Guide to Move Update at: http://beta.postalpro.usps.com/node/1116. Pieces that meet the requirements 
for the Legal Restraint method will be excluded from the Mailer 
Scorecard and the Address Quality Census Measurement and Assessment 
Process, as long as the mailpieces use the appropriate CRID or Mailer 
IDentifier (MID).
    [ssquf] Mailer: The term mailer within this document encompasses 
Mail Owners, Mail Preparers, and Mail Service Providers (MSPs).
    [ssquf] Mailer Scorecard: This is an electronic report that 
contains mail quality measurements and assessments on mailings over a 
calendar month for Move Update, Full Service Intelligent Mail, 
eInduction[supreg] and Seamless Acceptance. The Scorecard is accessible 
through the Business Customer Gateway (BCG) and provides views for eDoc 
submitters, MSPs, and Mail Owners.
    [ssquf] Non-qualifying Mailings: The non-qualifying mailpieces 
listed below will be excluded from the Address Quality Census 
Measurement and Assessment Process and the Mailer Scorecard:
    <bullet> Mailpieces that are undeliverable due to an address change 
that is Temporary, Foreign, Moved Left No Address (MLNA), and Box 
Closed No Order (BCNO).
    <bullet> Mailpieces that are priced as single-piece.
    <bullet> Mailpieces that qualify for the Legal Restraint method.
    <bullet> Mailpieces without the documentation submitted 
electronically.
    [ssquf] Qualifying Mailings: An eDoc submitter is eligible for the 
Address Quality Census Measurement and Assessment Process when at least 
one of its mailings qualifies for Full Service in a calendar month. 
Thereafter, when mailers enter eligible mailings of letter- and flat-
size pieces of First-Class Mail and USPS Marketing Mail that meet the 
requirements for Basic or Full Service mailings in a subsequent 
calendar month, the Address Quality Census Measurement and Assessment 
Process will be used, if the postage statement and supporting 
documentation are submitted electronically and a unique Intelligent 
Mail barcode (IMb[supreg]) is included in the eDoc.

Summary of Industry Comments and Postal Service Responses

    The Postal Service appreciates all of the comments that were 
provided by the mailing industry in response to the revised proposal of 
February 27, 2017. These comments and replies can serve as frequently 
asked questions (FAQs) to help clarify the Address Quality Census 
Measurement and Assessment Process. The mailers' comments and 
corresponding Postal Service responses are outlined as follows:

Mailer Comment

    Mailers are unable to effectively determine the success of the new 
measurement and assessment process, because the Postal Service has not 
provided sufficient information (i.e., statistical analysis) regarding 
how the error threshold will be set or modified. Therefore, mailers are 
not confident that mailings will be measured appropriately. 
Additionally, the determination of the assessment charge is not clearly 
outlined. We feel that the PRC should review both the proposed 
assessment charge along with the error threshold percentage and prior 
to the Postal Service publishing a final rule, then revisit the 
requirements of the proposed rule in light of the determinations made 
in that docket.

USPS Response

    As previously stated, on August 23, 2017, the PRC approved the 0.5 
percent error threshold and Move Update assessment charge under the 
Address Quality Census Measurement and Assessment Process. The Postal 
Service will implement the changes on January 21, 2018, which provides 
mailers nearly five months to adopt a USPS-approved Move Update method 
pursuant to the Move Update standard. In addition, this lead time will 
enable mailers to monitor COA errors via the Mailer Scorecard before 
the assessment process begins.

Mailer Comment

    Why are mailers required to adhere to specific approved Move Update 
methods? If the USPS decides this is a necessary requirement, can they 
enact ``safe harbor'' provisions that protect mailers who are 
consistently meeting the criteria for the Address Quality Census 
Measurement and Assessment Process from further liability resulting 
from United States Postal Inspection Service (USPIS) investigations?

USPS Response

    The DMM provides that certain commercial mailings must comply with 
the Move Update standard, regardless of whether the mail is verified 
for Move Update compliance presently under the Mail Evaluation 
Readability Lookup Instrument (MERLIN[supreg]) method, or will be 
subject to the Address Quality Census Measurement and Assessment 
Process when it takes effect on January 21, 2018. Failure to meet the 
Move Update standard may result in an additional postage assessment. 
The purpose of the Move Update standard is to correct mailpieces 
bearing an old address for which the Postal Service has a new address 
on record to help ensure that such mailpieces reach their intended 
recipients. Move Update requirements aim to bring down the incidence of 
UAA mail, which is costly to both the Postal Service and its customers.
    As noted in the proposed rule of July 6, 2016, there are three 
USPS-approved methods for satisfying the Move Update requirement, and 
mailers must use one of those approved methods unless a USPS-approved 
alternate method is used. There are two USPS-approved alternative 
methods (99 Percent Accuracy and Legal Restraint), which are available 
under very limited circumstances for mailers who enter First-Class 
Mail. By contacting the USPS National Customer Support Center (NCSC), 
eligible mailers may apply for

[[Page 49125]]

the following USPS-approved alternative methods:
    [ssquf] 99 Percent Accuracy: This method is available to mailers 
who enter First-Class Mail and demonstrate that their internal list 
management maintains address quality at 99 percent or greater accuracy 
for COAs. Mailpieces that meet the criteria for the USPS-approved 99 
Percent Accuracy method are subject to the new Address Quality Census 
Measurement and Assessment Process.
    [ssquf] Legal Restraint: This method is available to mailers who 
enter First-Class Mail and First-Class Mail Package Service pieces and 
demonstrate that a legal restriction prevents them from updating their 
customer's address without direct contact from the customer. Mailpieces 
that meet the conditions of the USPS-approved Legal Restraint method 
are excluded from the Address Quality Census Measurement and Assessment 
Process.
    For more information related to Move Update alternative methods, 
see the Guide to Move Update at https://postalpro.usps.com/node/1116.

Mailer Comment

    Why is the Postal Service measuring compliance and applying 
assessments at the eDoc submitter and CRID level rather than at the 
Mail Owner level? The Postal Service requires by/for and Mail Owner 
information with all eDoc for Full Service mailings, which means that 
they have the necessary information to determine the Mail Owners with 
whom any identified address quality errors are associated. Therefore, 
Mail Owners with less volume are concerned that they will be 
overshadowed by larger Mail Owners who dominate the MSP's volume.

USPS Response

    The Postal Service will measure compliance and apply assessments at 
the eDoc submitter and CRID level, because it is the eDoc submitter who 
submits the mail to the Postal Service; this allows USPS to remain 
consistent with the current verification process. As previously stated 
in the proposed rule of February 27, 2017, the Postal Service is 
providing specific data to assist eDoc submitters with identifying the 
Mail Owners who exceed the Census error threshold and contribute to the 
assessment charge. These data are provided throughout the calendar 
month to allow eDoc submitters and Mail Owners to discuss assessments 
before and during the 10-day mailer review period.

Mailer Comment

    It would be beneficial if USPS would provide sufficient notice to 
eDoc submitters who are at risk of losing free ACS so that they can 
take action to avoid disruption and continue to use the program.

USPS Response

    Once the extension of the no-fee ACS proposal takes effect on 
January 21, 2018, the Postal Service will monitor Full Service 
compliance for these mailers on a quarterly basis. If a mailer's 
average Full Service volume drops below the 95 percent threshold for a 
given quarter, that mailer will receive a notification of its removal 
from receiving no-fee ACS in the next billing cycle.

Mailer Comment

    How many locations, if any, will still be using MERLIN once this 
new Address Quality Census Measurement and Assessment Process is 
implemented? What is the transition plan to convert any remaining 
MERLIN sites?

USPS Response

    As stated in the proposed rule of February 27, 2017, upon 
implementation of the Address Quality Census Measurement and Assessment 
Process, the MERLIN Move Update verification process will terminate for 
all sites.

Mailer Comment

    When the new Address Quality Census Measurement and Assessment 
Process becomes effective, will USPIS, USPS, and mailers all be using 
the exact same, transparent Move Update compliance data for proof of 
Move Update compliance?

USPS Response

    All mailings using postage prices that require compliance with the 
Move Update standard, regardless of whether they qualify for 
verification under the Address Quality Census Measurement and 
Assessment Process, may be subject to a separate assessment in the 
event that they do not comply with the Move Update standard pursuant to 
DMM 602.5. A mailer has not complied with the Move Update standard if a 
USPS-approved Move Update method (DMM 602.5.2) was not used to update 
the mailer's address list with correct addresses (unless the mail bears 
an alternative address format under DMM 602.3). In those circumstances, 
the mailer did not qualify for the Presort or Automation price claimed 
on the postage statement or eDoc. The separate assessment could be 
applied to every mailpiece in a mailing for which the mailer did not 
comply with the Move update standard, and would be limited to the 
difference between the postage previously paid (including the Move 
Update assessment charge, if applicable) and the applicable First-Class 
Mail single-piece price.

Mailer Comment

    The Postal Service should further clarify how it will reconcile 
different results from NCOA\Link\, MPE NCOA\Link\, and ACS. Those 
systems do not always return the same results.

USPS Response

    As clarified in the proposed rule of February 27, 2017, the COA 
data for NCOA\Link\ and ACS are from the same source, the moving 
customer, and are in sync. If the mailer has a record with a name or 
address that cannot be matched to the addressee's COA request, the 
update may not be provided via NCOA\Link\ but may be available through 
ACS. These scenarios are encompassed within the threshold.

Mailer Comment

    We disagree with the 95 percent Full Service threshold required to 
access the free ACS data. When free ACS data for non-Full Service mail 
was proposed several years ago, USPS representatives promised to 
provide free ACS for the non-Full Service portion of all Full Service 
mailings. Additionally, the proposed threshold is applied to a MSP vs. 
the actual mail owner, which may result in a Mail Owner losing out on 
ACS data through no fault and no control of their own.

USPS Response

    In order to further encourage the adoption of Full Service and to 
increase the number of mailers who receive address quality information, 
the Postal Service is extending no-fee ACS to mailers who enter 
qualifying Basic automation and non-automation mailpieces that meet the 
criteria of the Address Quality Census Measurement and Assessment 
Process and to mailers who meet a Full Service threshold of 95 percent 
along with other requirements. As consistent with all other program 
measurements, this is determined at the eDoc submitter and CRID level.

Mailer Comment

    When the new process is implemented, the Federal Register indicated 
that all mail would be scanned through the MPE and not just randomly 
sampled. Therefore, if the Move Update percentage falls below the 
threshold, will any charges be assessed at the time of the mailing like 
it's

[[Page 49126]]

currently done or will the penalties simply be assessed on the 
scorecard?

USPS Response

    Effective January 21, 2018, mailings will no longer be assessed at 
the time of mailing. For qualifying mailers all mailpieces will be 
measured and aggregated across a calendar month, and any mailpieces 
exceeding the threshold will be assessed under the new Address Quality 
Census Measurement and Assessment Process.

Mailer Comment

    When an address list is processed through a third-party, USPS-
licensed software system and the USPS later determines that the mail is 
UAA with corresponding COA information is on file, the COA error should 
be charged against the software vendor. Such errors should be tracked, 
reported by the software vendor, and be a factor in the renewal of a 
software vendor's certification. This would allow mailers to make 
informed decisions regarding the accuracy of the software vendor and 
put responsibility for the software accuracy and COA errors where it 
belongs.

USPS Response

    NCOA\Link\ Software Developers are responsible for programming 
NCOA\Link\ Software so that it adheres to specific USPS performance 
requirements for name and address matching rules. Developers are tested 
on a periodic bases using an NCOA\Link\ test address file similar to 
the one for CASS/MASS certification. The Postal Service is providing 
specific data to mailers to assist with identifying errors exceeding 
the established threshold and contributing to the assessment fee. 
Mailers who submit eDoc are encouraged to use this data to identify 
root causes for failures and related fees. The Postal Service is 
providing specific data to mailers to assist with identifying errors 
that exceed the established threshold and contribute to the assessment 
fee. Mailers who submit eDoc are encouraged to use this data to 
identify root causes for failures and related fees.

Mailer Comment

    The Postal Service should provide additional detail with respect to 
the appeals process. The revised proposed rule references the Guide to 
Postage Assessments, but does not provide specific guidance on the type 
of information that the Postal Service would require to rescind or 
revise an assessment or audit result. Further certainty in this area 
would help Mailers, MSPs, and the Postal Service by setting clear 
advance guidelines as to what would be considered reasonable and 
acceptable evidence when appealing an assessment.

USPS Response

    As in the past, the Postal Service will continue to work with 
mailers in relations to the appeal process, fee assessments, and to 
obtain supporting documentation. For example, if a mailer is using 
NCOA\Link\ to update addresses, a summary/acknowledgement report could 
be provided to show that NCOA\Link\ was performed on the mailpieces.

Address Quality Census Measurement and Assessment Process Overview

    The Postal Service will replace the existing MERLIN Move Update 
verification process with the Address Quality Census Measurement and 
Assessment Process on January 21, 2018. In other words, MERLIN Move 
Update verification will terminate upon implementation of the Address 
Quality Census Measurement and Assessment Process. The new method will 
apply to First-Class Mail and USPS Marketing Mail letter- and flat-size 
pieces that meet the requirements for Basic and Full Service mailings.
    Once the Address Quality Census Measurement and Assessment Process 
is in place, mailers will still be required to document Move Update 
compliance methods on a postage statement, mail.dat, or mail.xml. 
Documents demonstrating the method used should be available upon 
request by the Postal Service.
    Mailers who enter Periodicals will be provided with address quality 
data, but Periodicals mailpieces will not be verified under the Address 
Quality Census Measurement and Assessment Process. The Postal Service 
is emphasizing that the Move Update standards in DMM 602.5 do apply to 
Periodicals, because the proposed rule published on February 27, 2017 
(82 FR 11871-11878) inaccurately stated that Periodicals are not 
subject to the Move Update standard.
    The Address Quality Census Measurement and Assessment Process will 
generate several benefits, including enhanced mailing visibility and 
improved mail quality metrics on all mailings entered within a calendar 
month, rather than sampled mailings. Under the Address Quality Census 
Measurement and Assessment Process, qualifying mailpieces within a 
calendar month will be measured according to the following process:
    [ssquf] Mailpieces will be scanned on MPE.
    [ssquf] Address information captured from mailpieces identified as 
UAA will be evaluated to determine if COA information is on file.
    [ssquf] The address information for mailpieces matching an active 
COA will be sent electronically to NCSC.
    [ssquf] NCSC will forward COA information to the Address Quality 
Census Measurement and Assessment Process for evaluation.
    [ssquf] Move Update validations will be performed by comparing the 
MID + Serial Number of the IMb from the COA-related mailpiece data. If 
the COA is between 95 days and 18 months old, and the address has not 
been updated, then a COA error for the associated IMb will be logged 
and allocated under the CRID of the eDoc submitter.
    [ssquf] All qualifying mailpieces entered by an eDoc submitter in a 
calendar month are subject to the proposed error threshold for the 
Address Quality Census Measurement and Assessment Process. The error 
threshold is 0.5 percent.
    [ssquf] The Move Update Assessment Charge is assessed by Postal 
Service to the relevant eDoc submitter at the CRID level for each 
mailpiece with a COA percentage that exceeds the error threshold.
    [ssquf] The data will be collected and reported on the Mailer 
Scorecard under the eDoc submitter CRID.

Move Update Assessment Charge

    When the ratio of qualifying mailpieces with COA errors to total 
qualifying mailpieces submitted in the calendar month by the eDoc 
submitter exceeds the Address Quality Census Measurement and Assessment 
Process error threshold, the Move Update assessment charge will apply 
to the mailpieces with COA errors above the threshold.

Mailer Scorecard

    The Mailer Scorecard is currently available to mailers, and 
provides data that allow mailers to gauge address quality on their 
mailpieces. Mailers will be charged only for mailpieces above the 
errors threshold.

Criteria

    Mailers will be verified under the Address Quality Census 
Measurement and Assessment Process when they:
    [ssquf] Have submitted any mailpieces as Full Service in the 
current month or any previous month.
    [ssquf] Use a unique Basic or Full Service IMb on mailings of 
letter- and flat-size pieces for First-Class Mail and USPS Marketing 
Mail.
    [ssquf] Use eDoc to submit mailing information.

[[Page 49127]]

Specifications

    The Postal Service has retained the proposed specifications for 
assessing address quality. Once the Postal Service implements the 
proposed process, address quality will be measured as follows:
    [ssquf] Analysis will be performed on all pieces in the mailing, 
rather than on a sample.
    [ssquf] The assessment will be determined by the number of COA 
errors in a calendar month, divided by the total number of pieces 
mailed that were subject to analysis. The resulting percentage will be 
compared to the Address Quality Census Measurement and Assessment 
Process error threshold of 0.5 percent.
    [ssquf] There are a number of exclusions to the measurement and 
assessment process. Generally, mailpieces with addresses that have the 
following COA characteristics will not be included in the assessment: 
Temporary moves, MLNA, BCNO, and COA data for foreign addresses.
    [ssquf] Mailpieces authorized for the Legal Restraint alternate 
Move Update method (See Guide to Move Update) will be excluded.

Mailpiece Results

    Once qualifying mailings are processed on MPE, the data from 
mailpieces will be reconciled with eDoc. These results will be 
available on the BCG and displayed on the Electronic Verification tab 
of the Mailer Scorecard, which will be easily accessible at https://gateway.usps.com/eAdmin/view/signin. Mailers will be able to review the 
Mailer Scorecard and corresponding detailed reports to identify any 
anomalies or issues.
    To resolve Mailer Scorecard irregularities, mailers should contact 
the PostalOne! Help Desk at 800-522-9085 or their local Business Mail 
Entry Unit (BMEU).

Address Change Service and Correction Notifications

    The Postal Service will extend no-fee Full Service ACS to 
qualifying Basic automation and non-automation mailpieces for mailers 
who enter at least 95 percent of their mail as Full Service in a 
calendar month.
    The Basic mailpieces must be prepared as follows:
    [ssquf] Bear a unique IMb printed on the mailpiece.
    [ssquf] Include a Full Service ACS or OneCode ACS[supreg] STID in 
the IMb.
    [ssquf] Include the unique IMb in eDoc.
    [ssquf] Be sent by an eDoc submitter providing accurate By/For 
identification in eDoc.
    As clarification, if mailers meet the 95 percent threshold during a 
calendar month, they will be enrolled to receive free Full Service ACS 
for all Basic automation and non-automation mailpieces in the following 
month. The Postal Service will monitor Full Service compliance for 
these mailers on a quarterly basis. If an enrolled mailer's average 
Full Service volume dropped below the 95 percent threshold for a given 
quarter, that mailer will receive notification of its removal from 
receiving free ACS in the next billing cycle. If the 95 percent 
threshold is met in a subsequent month, the removed mailer will be re-
enrolled to receive free Full Service ACS for Basic automation and non-
automation mailpieces for the next billing cycle.
    Address change information will be provided through Full Service 
ACS feedback to the Mail Owner identified in eDoc or its delegate. ACS 
information will continue to be distributed through SingleSource to the 
Mail Owner identified in the IMb or its delegate.
    Regarding Periodicals, mailers who enter mailings of Full Service 
Periodicals will no longer be required to receive and pay for manual 
address corrections when a Full Service ACS STID is used. However, 
these mailers may elect to receive and pay for manual address 
correction notifications by including the appropriate STID within the 
IMb.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.
    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)

* * * * *

507 Mailer Services

1.0 Treatment of Mail

* * * * *

1.5 Treatment for Ancillary Services by Class of Mail

* * * * *

1.5.2 Periodicals

* * * * *
    [Revise 507.1.5.2c by changing the last word of the sentence to 
``received'' as follows:]
    c. Address correction service is mandatory for all Periodicals 
publications, and the address correction service fee must be paid for 
each notice received.
* * * * *

4.0 Address Correction Services

* * * * *

4.2 Address Change Service (ACS)

* * * * *

4.2.2 Service Options

    [Revise 507.4.2.2 by modifying the introductory sentence and adding 
a new item ``d'' as follows:]
    ACS offers four levels of service, as follows:
* * * * *
    d. A Full Service option available to mailings of First-Class Mail 
automation cards, letters, and flats; USPS Marketing Mail automation 
letters and flats; USPS Marketing Mail Carrier Route, High Density, and 
Saturation letters; Periodicals Outside County barcoded or Carrier 
Route letters and flats; Periodicals In-County automation or Carrier 
Route letters and flats; and Bound Printed Matter Presorted, non-DDU 
barcoded flats. Mailers who present at least 95 percent of their 
eligible First-Class Mail and USPS Marketing Mail volume as Full 
Service in a calendar month would receive electronic address correction 
notices for their qualifying Basic automation and non-automation First-
Class Mail and USPS Marketing Mail pieces, at the address correction 
fee for pieces eligible for the Full Service Intelligent Mail option as 
described in DMM 705.23.0 for future billing cycles. The Basic First-
Class Mail and USPS Marketing Mail mailpieces must:
    1. Bear a unique IMb printed on the mailpiece;
    2. Include a Full Service or OneCode ACS STID in the IMb;
    3. Include the unique IMb in eDoc;
    4. Be sent by an eDoc submitter providing accurate Mail Owner 
identification in eDoc, and;

[[Page 49128]]

    5. Be sent by an eDoc submitter maintaining 95 percent Full Service 
compliance to remain eligible for this service and undergo periodic 
Postal Service re-evaluation.
* * * * *

4.2.8 Address Correction Service Fee

    [Revise 507.4.2.8 by deleting the old language and replacing with 
new language as follows:]
    ACS fees would be assessed as follows:
    a. The applicable fee for address correction is charged for each 
separate notification of address correction or the reason for 
nondelivery provided, unless an exception applies.
    b. Once the ACS fee charges have been invoiced, any unpaid fees for 
the prior invoice cycle (month) would be assessed an annual 
administrative fee of 10 percent for the overdue amount.
    c. Mailers who present at least 95 percent of their eligible First-
Class Mail and USPS Marketing Mail volume as Full Service in a calendar 
month would receive electronic address correction notices for their 
qualifying Basic automation and non-automation First-Class Mail and 
USPS Marketing Mail mailpieces, as specified in 4.2.2. The electronic 
address correction notices are charged at the applicable Full Service 
address correction fee for all future billing cycles.
* * * * *

600 Basic Mailing Standards for All Mailing Services

* * * * *

602 Addressing

* * * * *

5.0 Move Update Standards

* * * * *
    [Revise 602.5.3 by deleting former contents and replacing with new 
title and contents as follows:]

5.3 Move Update Verification

    Mailers who submit any Full Service volume in a calendar month will 
be verified pursuant to the Address Quality Census Measurement and 
Assessment Process beginning in the next calendar month. First-Class 
Mail and USPS Marketing Mail letter and flat-size mailpieces with 
addresses that have not been updated in accordance with the Move Update 
Standard will be subject to the Move Update assessment charge, if 
submitted via eDoc with unique Basic or Full Service IMbs. The Move 
Update assessment charge will be assessed if:
    a. The percent of all qualifying mailpieces submitted in a calendar 
month that have a COA error is greater than the 0.5 percent error 
threshold, as determined by an analysis of the data captured by mail 
processing equipment.
    b. Each mailpiece with addresses containing COA errors in excess of 
the error threshold will be assessed the Move Update assessment charge.
    c. Supporting details are described in Publication 685, Publication 
for Streamlined Mail Acceptance for Letters and Flats, available at 
www.postalpro.usps.com.
    [Revise 602.5.4 as follows:]

5.4 Mailer Certification

    The mailer's signature on the postage statement or electronic 
confirmation during eDoc submission certifies that the Move Update 
standard has been met for the address records including each address in 
the corresponding mailing presented to the USPS.
* * * * *

700 Special Standards

* * * * *

705 Advanced Preparation and Special Postage Payment Systems

* * * * *

23.0 Full Service Automation Option

* * * * *

23.5 Additional Standards

* * * * *

23.5.2 Address Correction Notices

* * * * *
    [Revise 705.23.5.2a as follows:]
    a. Address correction notices would be provided at the applicable 
Full Service address correction fee for letters and flats eligible for 
the Full Service option, except for USPS Marketing Mail ECR flats, BPM 
flats dropshipped to DDUs, or BPM carrier route flats. Mailers who 
present at least 95 percent of their eligible First-Class Mail and USPS 
Marketing Mail volume as Full Service in a calendar month would receive 
electronic address correction notices for their qualifying Basic 
automation and non-automation First-Class Mail and USPS Marketing 
mailpieces charged at the applicable Full Service address correction 
fee for future billing cycles. The Basic automation and non-automation 
First-Class Mail and USPS Marketing Mail mailpieces must:
    1. Bear a unique IMb printed on the mailpiece.
    2. Include a Full Service or OneCode ACS STID in the IMb.
    3. Include the unique IMb in eDoc.
    4. Be sent by an eDoc submitter providing accurate Mail Owner 
identification in eDoc.
    5. Be sent by an eDoc submitter maintaining 95 percent Full Service 
compliance to remain eligible for this service and undergo periodic 
USPS re-evaluation.
* * * * *
    We will publish an appropriate amendment to 39 CFR part 111 to 
reflect these changes.

Stanley F. Mires,
Attorney, Federal Compliance.
[FR Doc. 2017-22962 Filed 10-23-17; 8:45 am]
BILLING CODE 7710-12-P


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