Changes to the Domestic Mail Manual to Implement Docket No. R2000-1

POSTAL SERVICE

39 CFR Part 111

Changes to the Domestic Mail Manual to Implement Docket No. R2000-1

AGENCY:

Postal Service.

ACTION:

Final rule.

SUMMARY:

This final rule sets forth the Domestic Mail Manual (DMM) standards adopted by the Postal Service to implement the rate, fee, and classification changes for all classes of mail included in the Decision of the Governors of the Postal Service in Postal Rate Commission Docket No. R2000-1.

EFFECTIVE DATE:

This final rule is effective at 12:01 a.m. on January 7, 2001.

FOR FURTHER INFORMATION CONTACT:

Sherry Suggs, Office of Mail Preparation and Standards, 703-292-3648.

SUPPLEMENTARY INFORMATION:

On January 12, 2000, the United States Postal Service, in conformance with sections 3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 101

et. seq.

), filed a request for a recommended decision by the Postal Rate Commission (PRC) on proposed rate, fee, and classification changes. The PRC designated this filing as Docket No. R2000-1. The PRC issued a notice of filing in Order No. 1279 on January 14, 2000.

On August 29, 2000, the Postal Service published for comment in the

Federal Register

a proposed rule (65 FR 52479) that provided information on the implementation rules for the rate, fee, and classification changes that the Postal Service proposed to adopt if its requested changes in Docket No. R2000-1 were recommended by the PRC and approved by the Governors of the Postal Service.

On November 13, 2000, pursuant to 39 U.S.C. 3624, the PRC issued its Recommended Decision on the Postal Service's Request to the Governors of the Postal Service. The PRC recommendations made revisions to some of the mail classification structure, rates, and fees requested by the Postal Service. Based on an extensive analysis of the PRC's Recommended Decision and deliberation as to its consequences to the Postal Service and its customers, and pursuant to 39 U.S.C. 3625, the Governors acted on the PRC's recommendations on December 4, 2000. The Governors determined to allow the recommended rates and fees and the majority of the classification recommendations to take effect under protest. The Governors expressed disagreement with the Commission's estimate of required revenues in the test year, and returned the Recommended Decision to the Commission for reconsideration of the Postal Services revenue requirement. In a separate decision, the Governors rejected the PRC's recommendation to establish a one-pound flat rate for Priority Mail and “shell” classifications for Information Based Indicia Program Mail and Courtesy Envelope Mail. The Governors also rejected the Commission's recommendation to include footnotes in the Standard Mail rate schedules indicating a 3.3 ounce maximum weight and breakpoint weight.

The Board of Governors set an implementation date of January 7, 2001, for the rates, fees, and classifications allowed to take effect. This final rule contains the DMM standards adopted by the Postal Service to implement the Governors' decision. The revised DMM standards will take effect on January 7, 2001.

Part A summarizes the major changes made to the DMM implementing language since publication of the proposed rule (65 FR 52479). This includes changes made because of differences in the Postal Service's proposal and the PRC's recommended decision, changes made in response to the Governors' decisions, and changes made by the Postal Service in response to mailer comments or for other reasons. Part B of this final rule summarizes, by class of mail and special service category, all of the revisions made to current DMM Issue 55 to implement R2000-1. Part C of this final rule contains an analysis of the comments received on the proposed rule and the Postal Service responses. Part D summarizes the changes by DMM module and section. The actual implementing language for the DMM follows at the end of this final rule.

As information, the DMM language in this final rule incorporates revisions to the DMM from four previously published

Federal Register

final rules that also will take effect on January 7, 2001. These final rules are:

1. “Sack Preparation Changes for Periodicals Nonletter-Size Pieces and Periodicals Prepared on Pallets” published on July 28, 2000 (65 FR 46361).

2. “Line-of-Travel Sequencing for Basic Carrier Route Periodicals” published on July 28, 2000 (65 FR 46363).

3. “Preparation Changes for Palletized Standard Mail (A) and Bound Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed at DBMC Rates” published on August 8, 2000 (65 FR 48385).

4. “Domestic Mail Manual Changes for Sacking and Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-Class Flats, and for Labeling Pallets” published on August 16, 2000 (65 FR 50054).

Accordingly, the numbering and the language of the DMM sections in this final rule have been synchronized with these other final rules and may not match the numbering and language in current DMM Issue 55.

A. Major Changes and Additions Other than Rate and Fee Levels Since Publication of the August 29, 2000, Proposed Rule

1. Express Mail

The Postal Service has added clarifying language to DMM S500.3.0 to provide for use of electronic option Delivery Confirmation with Priority Mail, Standard Mail parcels, and Package Services mail enclosed in Express Mail drop shipment mailings. Use of electronic option Signature Confirmation also will be permitted for Priority Mail and Package Services mail that is enclosed in Express Mail drop shipments. Retail option Delivery Confirmation and Signature Service is not available for mail enclosed in Express Mail drop shipment mailings.

2. Priority Mail

The Postal Service has added clarifying language to DMM S070 to provide for use of electronic option Delivery Confirmation with Standard Mail parcels and Package Services mail enclosed in Priority Mail drop shipment mailings. Use of electronic option Signature Confirmation also will be permitted for Package Services mail that is enclosed in Priority Mail drop shipments. Use of retail option Delivery Confirmation and Signature Confirmation is not permitted with Standard Mail and will not be permitted with Package Services mail enclosed in Priority Mail drop shipments. Delivery Confirmation (either retail or electronic option) is not available for the Priority Mail portion of the drop shipment.

3. First-Class Mail

a. Maximum Weight for Automation Heavy Letters

The maximum weight for First-Class Mail heavy letters that may qualify for automation letter rates will be 3.3 ounces (.2063 pound).

b. Barcodes on Automation Flats

DMM C840.3.0 has been revised to allow application of two POSTNET barcodes on the address side of flat-size

automation rate pieces provided certain conditions are met.

4. Periodicals

a. DDU Rates for Periodicals Mail Entered under Exceptional Dispatch

Based on the Postal Rate Commission's recommended decision, the final rule will include DMM changes that will provide for DDU rates for Periodicals mail entered under exceptional dispatch. The change will limit DDU rates under exceptional dispatch to zones 1 and 2 and provides a restriction on eligibility to publications with circulation of 25,000 and under.

b. DMM Renumbering

The information contained in DMM E220 in the proposed rule has been renumbered as DMM E217.

c. Maximum Weight for Automation Heavy Letters

The maximum weight for Periodicals heavy letters that may qualify for automation letter rates will be 3.3 ounces (.2063 pound).

d. Barcodes on Automation Flats

DMM C840.3.0 has been revised to allow application of two POSTNET barcodes on the address side of flat-size automation rate pieces provided certain conditions are met.

5. Standard Mail (formerly Standard Mail (A))

a. Maximum Weight Limit for Automation Letters

The maximum weight for heavy letters that may qualify for automation letter rates will be 3.3 ounces (.2063 pound).

b. Computation of Postage

Proposed DMM E610.5.7 (formerly DMM E612.4.5) that contained language that mailers must compute postage using both piece and piece/pound rates and pay whichever is higher, was removed. Because all pieces weighing 3.3 ounces or less will pay postage using minimum per piece rates and all pieces weighing more than 3.3 ounces will pay postage using the piece/pound rates, this computation by mailers is not necessary.

c. Barcodes on Automation Flats

DMM C840.3.0 has been revised to allow application of two POSTNET barcodes on the address side of flat-size automation rate pieces provided certain conditions are met.

d. Permissible Use of Electronic Option Delivery Confirmation With Standard Mail Parcels Enclosed in a Priority Mail or Express Mail Drop Shipment

The Postal Service has added clarifying language to DMM S070 and S500.3.0 to provide for use of electronic option Delivery Confirmation with Standard Mail enclosed in Priority Mail Drop Shipment or Express Mail Drop Shipment mailings. Use of retail option Delivery Confirmation is not permitted with Standard Mail. Delivery Confirmation also is not available for the Priority Mail portion of the drop shipment.

6. Combined Package Services Mail for DSCF and DDU Rates

a. Overflow Sacks

Based on comments received on the proposed rule, standards were added to DMM E753.2 and 3 to provide for the preparation of 5-digit overflow sacks for Combined Package Services mailings prepared in sacks or on pallets.

b. Clarification of Destination Entry Rate Eligibility

In DMM E753, references to “destination entry” were changed to “DSCF and DDU” to clarify that DBMC rates are not available under DMM E753 for combined Package Services mailings.

c. Clarification of Minimum Pallet Volumes

Minor changes were made throughout DMM E753 for combined Package Services mail prepared on pallets to clarify that there are two options for meeting minimum pallet volumes. Pallets must contain (1) a minimum of 50 combined parcels and 250 pounds of combined Package Services mail, or (2) 36 inches of mail. In addition, E753.1.1b(2) was amended to clarify that the height of the pallet is excluded when determining the minimum of 36 inches of mail on pallets.

d. Clarification of Postage Payment Method

DMM E753.1.1g was revised and new DMM E753.1.1h added to clarify that postage for combined Package Services mailings must be paid by permit imprint under an approved manifest mailing system agreement.

e. Maximum Height for Pallet Boxes

DMM M041.4.2 has been revised to add a requirement that for mailings prepared in pallet boxes to qualify for the DSCF or DDU rate, the height of the pallet box may not exceed 60 inches (excluding the pallet) as is currently required for Parcel Select DSCF and DDU rate mail (DMM M041.4.2).

7. Bound Printed Matter

a. Eligibility of Flat-Size Presorted Bound Printed Matter for DDU Rates

The final implementing standards in DMM E753 permit flat-size Presorted Bound Printed Matter sorted to 5-digit containers or 5-digit bedloaded packages to qualify for DDU rates if the pieces weigh over one pound and are entered at the appropriate destination delivery unit. The Drop Shipment Product must be used to determine the correct destination entry facility for the 5-digit sorted flat-size Bound Printed Matter entered at Presorted rates. If the Drop Shipment Product lists multiple facilities for a single 5-digit ZIP Code, the mailer must inquire about the correct drop site when contacting the DDU to schedule an appointment.

b. Clarification of Package and Sack Minimums

DMM M045, M722, and M723 were amended to include a clarification of the term “whichever comes first,” as it is used in the minimum size standards for preparing packages and sacks.

c. Correction of Summary of Changes to Machinable Parcel Sacking Standards

The summary of changes information in the proposed rule incorrectly stated that there were no changes to machinable parcel sack preparation other than eliminating the 1,000 cubic inch sack sortation option. The summary of changes in this final rule correctly shows that machinable parcel preparation is revised to add the “whichever comes first” criterion to the minimum sack requirements, and to allow mailers the option of preparing an ASF sack when such pieces are entered at the DBMC rates.

d. Clarification of Carrier Route Rate Eligibility

DMM E712.4.3, which was contained in the proposed rule, is deleted in this final rule. This section was erroneously included in the proposed rule and contained Carrier Route rate eligibility standards that conflicted with E712.2.0.

e. Clarification of Packaging Standards in M020

DMM M020 has been clarified to (1) show that mixed ADC packages may contain fewer than two physical pieces, (2) clarify that each physical package of Bound Printed Matter must always contain at least two pieces except for mixed ADC packages and, under the conditions described in that section,

packages of Carrier Route mail prepared in sacks.

f. Revision of Maximum Individual Piece Weight for Package Preparation

The proposed rule preparation requirements for sacked mailings of irregular parcels stated that pieces weighing 10 pounds or less must be packaged prior to sacking. However, for Presorted rate irregular parcels, the minimum package size was proposed to be and is stated in this final rule to be 10 pieces or 10 pounds, whichever comes first, with a stipulation that each package must contain at least 2 pieces. Under this scenario, a single piece weighing 10 pounds would meet the minimum packaging standard and would also be required to meet the standard that each package contain at least 2 pieces. The standard requiring at least 2 pieces in each physical package would, for a 10-pound mailpiece, actually result in a minimum package size of 20 pounds rather than 10 pounds.

To eliminate this discrepancy, the cut-off weight for preparing irregular parcels in packages in DMM M722 has been changed from “weighing 10 pounds or less” to “weighing less than 10 pounds.”

To keep the packaging requirements parallel, this change also has been made for carrier route irregular parcels in sacks (DMM M723) and for all packages on pallets (DMM M045).

g. Revised Sacking Criteria for Presorted Irregular Parcels Weighing 10 or More Pounds

DMM M722.4.0, Required Preparation—Irregular Parcels Weighing 10 Pounds or More, has been revised to remove the sacking criterion of 10 or more pieces. The proposed rule stated that irregular parcels each weighing over 10 pounds were to be sacked whenever there were at least 10 pieces or 20 pounds, whichever occurs first, for a presort destination. Under the stated “whichever occurs first” rule, pieces that weigh over 2 pounds would always be sacked under the minimum 20-pound rule. Since this section pertains to only pieces that individually weigh 10 or more pounds, the option to sack based on the criterion of at least 10 pieces for a presort destination would never be used and it is therefore deleted.

h. Exception to Packaging for Presorted Rate Irregular Parcels in 5-Digit Sacks

An exception has been added to the packaging requirement in DMM M722 for Presorted rate irregular parcels that are prepared in 5-digit sacks. Mailers of Presorted rate irregular parcels prepared in 5-digit sacks, may at their option, prepare such pieces loose in sacks without physical packaging provided the number of pieces in the sack meets the minimum package size and sack size requirements and the pieces in the 5-digit sack(s) are individually wrapped or enveloped.

i. Clarification of Mixed ADC Sack Preparation to Qualify for DBMC Rates

Mailers who opt to claim the DBMC rates for mail in mixed ADC sacks are required to prepare separate mixed ADC sacks for pieces eligible for and claimed at the DBMC rate and for pieces not claimed at the DBMC rate (one set of mixed ADC sacks containing packages qualifying for DBMC rates and one set of mixed ADC sacks for packages that do not qualify for DBMC rates). For this purpose, DMM E650 and E752 have been clarified to specify that mailers must assign ADC packages to the respective qualifying or nonqualifying mixed ADC sacks based on the “label to” ZIP code for the ADC (DMM L804). For mixed ADC packages, separate mixed ADC packages must be prepared based on the individual addresses on the pieces. That is, a mixed ADC package(s) for pieces within the ASF or BMC entry point must be prepared and a separate mixed ADC package(s) for pieces outside the entry ASF or DBMC area must be prepared (using either Exhibit E650.5.1 or Exhibit E751.1.3).

j. Correction of Eligibility of Presorted Rate Machinable Parcels for DSCF Rates

DMM E752.3.3 has been amended to remove the requirement that was incorrectly published in the proposed rule that stated mailers of palletized machinable parcels at Presorted rates would be required to determine if the 5-digit facility was able to handle pallets using the Drop Shipment Product maintained by the National Customer Support Center (NCSC) and that pallets could not be prepared if the 5-digit facility was unable to handle pallets.

k. Maximum Height for Pallet Boxes at DSCF and DDU Rates

DMM M041.4.2 has been revised to add a requirement that for mailings prepared in pallet boxes to qualify for the DSCF or DDU rate, the height of the pallet box may not exceed 60 inches (excluding the pallet) as is currently required for Parcel Select DSCF and DDU rate mail (DMM M041.4.2).

8. Parcel Post

Some of the standards for Parcel Post have been reorganized for clarity since the publication of the proposed rule. Specifically, the criteria for nonmachinable parcels for purposes of applicability of the nonmachinable surcharges for inter-BMC, Intra-BMC, and DBMC rate parcels have been moved from E711 to C700.

There have been no substantive changes to the standards for Parcel Post since publication of the proposed rule.

9. Media Mail and Library Mail

DMM M045.3.6 has been corrected to show that pallets of Presorted Media Mail and Presorted Library Mail must show “PSVC” on Line 2 to indicate the class of mail.

10. Special Services

a. Business Reply Mail

Effective November 5, 2000, the Postal Service completely rewrote DMM standards for business reply mail (see Postal Bulletin 22035 (10-19-00), available via www.usps.com). This rewrite was done for clarity and consistency. Therefore, standards for business reply mail in this final rule have been reorganized to reflect the new structure of DMM units E150, P014, R900, and S922.

A provision in the DMCS that required permit holders to maintain an advance deposit account solely for the use of business reply mail has been deleted. Therefore, DMM S922.3.3 is revised to show that permit holders will be able to maintain a single advance deposit account from which multiple items can be deducted (e.g., BRM, QBRM, merchandise return service, incoming shortpaid mail, address correction notices, etc.). If permit holders request separation of charges, then they must pay an annual accounting fee for each separation, as appropriate.

b. Insurance

DMM S913.1.5 was rewritten to clarify the additional services that can be added to insurance.

c. Registered Mail

A sentence was added to the DMM to clarify that registered items receive registered treatment while they are being forwarded or returned (DMM F010.5.4e). DMM S911.1.5 was rewritten to clarify the additional services that can be added to registered mail.

d. Return Receipt

Editorial changes were made to DMM S915.1.2 to clarify that certain special services can be combined with return receipt only at the time of mailing. DMM S915.1.7 was revised to allow Delivery Confirmation and Signature Confirmation services to be added as

additional services, provided that one of the prerequisite services in DMM S915.1.2 is purchased first. DMM S915.2.2 was amended to remove instructions related to activation of the signature capture process. DMM S915.4.2 was amended to clarify procedures for requesting delivery information.

e. Return Receipt for Merchandise

Proposed DMM S917.1.2 is revised to remove First-Class Mail as eligible matter. Return receipt for merchandise service is not currently an option for First-Class Mail that is 13 ounces or less; the reference to First-Class Mail was included in the proposed rule in error. Return receipt for merchandise service is available only for Priority Mail, Standard Mail parcels that are subject to the residual shape surcharge, and Package Services.

f. Signature Confirmation

Minor changes were made to the DMM language to clarify how delivery information can be retrieved and to clarify requirements for the package identification code. In addition, mailers who have previously received certification for label printing under the Delivery Confirmation program are not required to obtain any additional certification to use Signature Confirmation (DMM S919.3.3). Standards were added to allow mailers to use an integrated barcode to combine Delivery Confirmation or Signature Confirmation and insurance services (DMM S919.1.7, 3.4, and 4.0). Waiver of signature is not available when Signature Confirmation is combined with other special services (DMM S919.1.10). DMM C850.1.4 was amended to include information about concatenated and integrated barcodes with Signature Confirmation service. Language was added to F020.3.7 to show that pieces with Signature Confirmation are forwarded without payment of additional special service fees. P014.2.34f was amended to add language for refunds for Signature Confirmation service. S913.2.5 was amended to add information about integrated barcodes with Signature Confirmation and insurance.

g. Mailing List Services

DMM A910.2.2 was revised to show that the minimum fee ($7.50) for correcting a mailing list applies to lists with fewer than 30 names or addresses. This revision was omitted from the proposed rule.

h. Merchandise Return Service

DMM S923.3.4 was amended to clarify that a separate accounting fee must be paid for each separate withdrawal (billing) requested by a permit holder. This change is consistent with current standards for business reply mail.

i. Payment Period for Fee Renewals

On December 14, 2000, the Postal Service revised current DMM sections E100.4.1, E612.4.7, E630.1.5, S922.2.3, S922.3.3, S923.3.1, and S924.3.1 to allow customers to renew fee payments any time during the last 60 days of the current period (see Postal Bulletin 22039 (12-14-00)). Affected sections in this final rule have been revised accordingly to be consistent with the 60-day payment period.

B. Summary by Class of Mail and Special Service of All DMM Revisions for R2000-1

1. Express Mail

a. Express Mail Rate Highlights

Overall, Express Mail rates will increase by an average of 3.6%. Moderate increases will occur for all Express Mail rates, except for a $0.30 decrease in the

1/2

-pound rates for Custom Designed Service and for Next Day and Second Day Post Office to Post Office Service. The fee for pickup service will increase from $8.25 to $10.25 per occurrence. The fee for delivery stops (Custom Designed Service only) will increase from $8.25 to $10.25. The fee for every $100 increment of additional insurance desired above the standard $500 of coverage will increase from $0.95 to $1.00.

b. Express Mail Rate Structure

There are no changes to the rate structure of Express Mail. Same Day Airport Service is still suspended.

c. Express Mail Preparation Changes

There are no changes to mail preparation requirements for Express Mail.

2. Priority Mail

a. Priority Mail Rate Highlights

Overall, Priority Mail rates will increase by an average of 16%. The fee for pickup service will increase from $8.25 to $10.25 per occurrence.

b. Priority Mail Rate Structure

(1) One Pound or Less Priority Mail Rate

A unique Priority Mail rate has been implemented for pieces weighing 1 pound or less. Prior to this change all Priority Mail pieces weighing 2 pounds or less were charged the 2-pound rate. Mail that is placed in a Priority Mail flat-rate envelope will continue to be charged the 2-pound rate regardless of the actual weight of the piece.

(2) Keys and Identification Devices

Keys and identification devices that weigh more than 13 ounces but not more than 1 pound will be eligible for the new 1-pound Priority Mail rate plus the fee. The fee for keys and identification devices will increase from $0.30 to $0.35.

c. Priority Mail Preparation Changes

There are no changes to mail preparation requirements for Priority Mail.

3. First-Class Mail

a. First-Class Mail Rate Highlights

Overall, First-Class Mail rates will increase by an average of 1.8%. The single-piece first-ounce letter rate increases by only one cent, from $0.33 to $0.34, and the rate for each additional ounce reduces by one cent from $0.22 to $0.21. The single-piece card rate remains at $0.20.

The first-ounce letter rate for Qualified Business Reply Mail (QBRM) increases from $0.30 to $0.31, and the card rate for QBRM reduces from $0.18 to $0.17.

The nonstandard surcharge for single-piece rate mail weighing one ounce or less will remain the same at $0.11. The nonstandard surcharge for Presorted rate and Automation rate pieces will remain the same at $0.05.

The basic automation flat rate will increase from $0.30 to $0.31 for the first ounce. The combined 3/5-digit rate category for automation flats will be eliminated. New and separate automated rate categories for 3-digit automation flats and for 5-digit automation flats will be implemented. The annual presort mailing fee will increase from $100 to $125.

b. First-Class Mail Rate Structure

The current automation flats 3/5-digit rate will be split into two separate rates: a 3-digit automation rate and a 5-digit automation rate.

c. First-Class Mail Preparation Changes

(1) Maximum Weight Limit for Automation Heavy Letters (C810.2.3)

The maximum weight for heavy letters that may qualify for automation letter rates also will be 3.3 ounces (.2063 pound).

(2) Automation Flats (DMM M011, M030, M033, M820, M910)

The Postal Service will change the standards for the preparation of 5-digit packages and 5-digit trays of automation flats under DMM 820 from required levels of sortation to optional levels of sortation. This is supported by the new rate structure that provides separate 5-digit and 3-digit rates for automation flats. All other current mail preparation requirements will remain the same.

The Postal Service will also add a new tray-based presort option for automation flats. When using this option, mailers will not need to prepare automation flats in 5-digit, 3-digit, ADC, and mixed ADC packages. Instead, mailers will prepare flat trays to 5-digit (optional), 3-digit, and ADC destinations whenever there are 90 or more pieces to a presort destination, and place remaining pieces in mixed ADC tray(s) that have no minimum tray quantity. Ninety is the average number of pieces that fills a flat tray up to the bottom of the handholds when at least a single stack of mail is lying flat on the bottom of the tray. When there are 90 or more pieces for a presort destination (other than mixed ADC), mailers will be required to physically fill flat tray(s) for that destination and will be allowed one less-than-full tray or one overflow tray per 5-digit, 3-digit, and ADC destination. Preparation of 5-digit trays also will be optional under this tray-based preparation option. Rates will be based on the sortation level of the tray to which a piece is sorted. Mailers choosing to prepare their mail using this option will not be eligible to prepare their mail as outlined in new M910 which will also go into effect when the rates resulting from the R2000-1 rate case are implemented. (M910 will permit co-traying of packages from automation rate mailings and packages from Presorted rate mailings that are part of the same mailing job and meet other criteria.)

(3) Tray Containers (DMM M033)

For clarification, new information has been added to M033.1.2 to show that the lids required to be placed on First-Class Mail flat trays must be placed on the tray green side up prior to strapping under M033.1.5b.

(4) Application of Two POSTNET Barcodes for Automation Flats (DMM C840.3.0)

Mailers have requested the ability to qualify flat-size mailpieces that bear two POSTNET barcodes for the automation flat rates. Mailers indicate that a mailpiece bearing a barcode that is not CASS-certified can in some instances be upgraded to contain a second delivery point barcode that meets the CASS- or MASS-certification criterion for eligibility for automation flat rates if it is subsequently processed through an MLOCR or other barcoding system.

However, unlike automated processing of letter mail, FSM barcode readers will read the first barcode it recognizes. Therefore, which barcode is read depends on the orientation of the mailpiece when fed through the flat sorter and the location of the barcodes on the mailpiece.

A cooperative effort between the Postal Service and MLOCR vendors led to the development of standards that will allow mailers to submit mailpieces that bear two POSTNET barcodes to qualify for automation flat-rates. The Postal Service believes these standards meet both the interest of the mailers in qualifying for the most advantageous postage rate discounts at the lowest possible mailing costs and the interest of the Postal Service to generate more barcoded flat-size mailpieces. In addition, MLOCR vendors plan to offer FASTforward

sm

to their clients in the future to meet the First-Class Mail requirement for move update in DMM E140.

The Postal Service will allow the application of two POSTNET barcodes on the addressed side of flat-size automation rate pieces providing certain requirements are met. The presence of two POSTNET barcodes on a flat-size mailpiece will be permitted only when the first barcode is applied in the address block and that barcode is either a 5-digit barcode or it is a ZIP+4 or delivery point barcode that is not CASS-certified. The second barcode must be a delivery point barcode and must be CASS- or MASS-certified. It is preferred, but not required, that the second barcode be applied in the lower right area of the mailpiece parallel to and in the same direction as the delivery address. A greater than one-inch separation between the two barcodes is required. The second POSTNET barcode must not be placed near the return address. A no-spray clear zone of at least one inch below the return address is required. This is because OCRs on Postal Service flat sorting machines use the location of the POSTNET barcode to determine the location of the destination address block. If a POSTNET barcode is applied close to the return address and is scanned first, it is highly probable that the OCR will encode the return address and inadvertently return the mailpiece to the sender. The preferred location of the lower right area of the mailpiece will increase the likelihood that the CASS- or MASS-certified delivery point barcode is the first one read by the FSMs.

The application of two POSTNET barcodes is a temporary solution and may be revised subsequent to implementation of planet codes and/or testing and implementation of other options. At that time, MLOCR vendors and or mailers will be given a 90-day transition period to comply with the new requirements.

4. Periodicals

a. Periodicals Rate Highlights

The overall proposed average rate increase for Periodicals decreased from 12.7% to 9.5%. Outside-County Periodicals will have an average increase of 9.5% while Within-County Periodicals will have an average increase of 6.8%. Regular, Nonprofit and Classroom will have average increases of 9.9%, 7.2% and 9.6%, respectively.

Two of the preferred subclasses (Nonprofit and Classroom) will be combined with the Regular subclass to form an Outside-County subclass with one set of rates. Nonprofit and Classroom publications will receive a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. The Within-County subclass will remain a separate subclass with a separate set of rates.

The nonadvertising percentage per piece discount, the delivery unit (Outside-County and In-County) per piece discounts, and the SCF per piece discount will increase. The Outside-County (except delivery unit, which decreases), Science-of-Agriculture (except delivery unit, which decreases), and In-County pound rates will increase along with all per piece rates for both subclasses (Outside-County and Within County). See DMM R200 for individual rates and discounts.

The fee for original entry will increase from $305 to $350. The re-entry and newsagents' fees will decrease from $50 to $40. The fee for additional entry will remain unchanged at $50.

DMM changes will provide for DDU rates for Periodicals entered under exceptional dispatch authorizations. The change will limit DDU rates under exceptional dispatch to mail destined to zones 1 and 2 and will generally restrict eligibility to publications with circulation of 25,000 and under.

b. Periodicals Rate Structure

Regular, Nonprofit, and Classroom publications will use the same Outside-County rate schedule. Nonprofit and

Classroom publications will receive a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. The 5% discount does not apply to commingled nonsubscriber copies in excess of the 10% allowance provided under DMM E215. In-County rates will remain a separate rate schedule.

c. Periodicals Mail Preparation Changes

(1) Bundles on Pallets

The current DMM describes a “bundle” as a group of packages secured together as a unit that equates to a sack. The current DMM provides both for preparation of packages on pallets under DMM M045.2.0 and for preparation of bundles on pallets under DMM M045.3.0. The Postal Service is not aware of any mailers that currently opt to prepare bundles on pallets. Accordingly, the Postal Service will delete the option to prepare bundles on pallets under current DMM M045.3.0. The provisions for preparing packages on pallets will remain in DMM M045.2.0.

(2) Maximum Weight Limit for Automation Heavy Letters (C810.2.3)

The maximum weight for heavy letters that may qualify for automation letter rates also will be 3.3 ounces (.2063 pound).

(3) Other Rulemakings

Mailers are reminded that three final rule

Federal Register

notices have previously been published that set forth required and optional preparation requirements for Periodicals that also will be effective on January 7, 2001. These are: (1) “Sack Preparation Changes for Periodicals Nonletter-Size Pieces and Periodicals Prepared on Pallets” published on July 28, 2000 (65 FR 46361), (2) “Line-of-Travel Sequencing for Basic Carrier Route Periodicals” published on July 28, 2000 (65 FR 46363), and (3) “Domestic Mail Manual Changes for Sacking and Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-Class Flats, and for Labeling Pallets” published August 16, 2000 (65 FR 50054). In addition, a final rule has been published concerning “Sack Preparation Changes for Periodicals Nonletter-Size Mailing Jobs that Include Automation Flat Rate and Presorted Rate Mailings.” This final rule requires, effective January 7, 2001, use of the co-sacking preparation method in DMM M910 for Periodicals nonletter-size mailing jobs that include both an automation flats mailing and a Presorted flats mailing. Information concerning optional use of DMM M910 and its associated preparation criteria was published in Postal Bulletin 22036 (11-2-00). Information concerning required use of DMM M910 by Periodicals mailers will be published in Postal Bulletin 22039 (12-14-00) as “Preparation Changes for Periodicals Nonletter-Size Mailing Jobs.”

5. Standard Mail (Formerly Standard Mail (A))

a. Standard Mail Rate Highlights

Regular rates will increase by an average of 8.8%. Rates for commercial Enhanced Carrier Route (ECR) mail will increase by an average of 4.5%. Rates for Nonprofit mail will increase by an average of 4.8%. Rates for Nonprofit Enhanced Carrier Route will increase by an average of 18.3%.

Discounts for destination entry rate mail (DBMC, DSCF, and DDU) have increased. The annual presort mailing fee increases from $100 to $125.

b. Standard Mail Rate Structure

All Standard Mail letters and non-letters are subject to a weight limit of 3.3 ounces (.2063 pound) for the minimum per piece rate.

A new machinable parcel barcoded discount of $0.03 will apply to Standard Mail machinable parcels that are subject to the residual shape surcharge and that meet other preparation requirements. This machinable parcel barcoded discount is available only for the Regular and Nonprofit Standard Mail subclasses (it will not be available for pieces mailed at the Enhanced Carrier Route and Nonprofit Enhanced Carrier Route subclasses).

There are two different residual shape surcharges: Enhanced Carrier Route and Nonprofit Enhanced Carrier Route mail have a residual shape surcharge of $0.15, and Regular and Nonprofit mail have a residual shape surcharge of $0.18.

Return receipt for merchandise, bulk insurance, and electronic option Delivery Confirmation are available for Standard Mail parcels that are subject to the residual shape surcharge.

c. Standard Mail Preparation Changes

(1) Name Change and DMM Restructuring

The name of the mail class “Standard Mail (A)” will change to “Standard Mail.” Throughout this final rule, “Standard Mail” is used consistently in the DMM text to indicate the class formerly known as “Standard Mail (A).” For brevity, not all DMM sections for which only name changes apply were reproduced in this final rule. This change will, however, be implemented throughout all of DMM Issue 56, which will transmit the final implementing rules for R2000-1.

DMM sections C600, D600, E600, M600, P600, and R600 now contain standards for only Standard Mail. Matter in these sections that formerly contained standards for Package Services mail have been moved into new sections under C700, D700, E700, M700, P700, and R700, respectively. (Former P700, which contains information on special postage payment systems, is renumbered as P900.)

Matter pertaining only to Standard Mail in former E611 and E612 is consolidated and reorganized into new E610. DMM E620 and E630 are reorganized so that E620 pertains to Presorted rate Standard Mail and E630 pertains to Enhanced Carrier Route Standard Mail.

(2) Sack and Pallet Labels (DMM M031, M032, M045, M600)

Currently, the contents line of sack and pallet labels for irregular parcel and machinable parcel mailings must show “STD A” or “STD B” as applicable for the class being mailed. Because of the name changes of “Standard Mail (A)” to “Standard Mail” and of “Standard Mail (B)” to “Package Services,” the use of “STD A” on “Standard Mail” sack and pallet labels for irregular parcel and machinable parcel mailings is changed to “STD” (Package Services labels will use “PSVC”).

(3) Dimensions for Machinable Parcels (DMM C050)

The minimum dimensions for a machinable parcel in DMM C050.4.1a are changed to not less than 6 inches long, 3 inches high,

1/4

inch thick, and 6 ounces in weight. (A mailpiece exactly

1/4

inch thick is subject to the 3

1/2

-inch height minimum under C010.) Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the new machinability standards in DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization will apply only to mail that is both entered at a post office within the service area of the authorizing BMC area and is for delivery to an address within the service area of that BMC. These changes also apply to Package Services mail.

(4) Preparation of Bundles (DMM M045, M600)

The current DMM describes a “bundle” as a group of packages secured

together as a unit that equates to a sack. Because the Postal Service is not aware of any mailers that currently opt to prepare bundles on pallets, the provision in M045.3.0 that contains an option to prepare bundles on pallets is removed. The provisions for preparing packages on pallets will remain in DMM M045.2.0.

The current DMM also provides for preparation of bedloaded bundles of Presorted and Carrier Route rate mail under DMM M610.6.0 and M620.6.0, respectively. Such preparation requires Rates and Classification Service Center (RCSC) authorization. The records of the Postal Service currently indicate that there are no mailers authorized to prepare bedloaded bundles in the manner described in the DMM. Because of this, and because bedloaded bundles are generally not cost-efficient for the Postal Service to handle and process, the Postal Service is removing the options to prepare bedloaded bundles under DMM M610.6.0 and M620.6.0.

(5) Machinable Parcel Barcoded Discount (DMM C850, E610, E620, P600)

The new machinable parcel barcoded discount of $0.03 will apply to machinable parcels (as defined in DMM C050) for which the residual shape surcharge (RSS) surcharge is paid and that bear a correct, readable 5-digit barcode under C850 for the ZIP Code shown in the delivery address and are prepared as machinable parcels under M045 or M610. Machinable parcels prepared in 5-digit sacks or on 5-digit pallets entered at DSCF rates may qualify for the barcoded discount even though such pieces will not be processed using BMC barcode scanning equipment. Otherwise, rates for 5-digit sorted machinable parcels entered at DSCF rates could be higher than for BMC sorted machinable parcels that were entered at DBMC rates and which also qualified for the barcoded discount. Machinable parcels entered at DBMC rates may claim the machinable parcel barcoded discount only if they are entered at a BMC. An exception is that properly prepared machinable pieces of DBMC rate mail entered at the Phoenix, Arizona, ASF may claim the barcoded discount because that facility uses barcode scanning equipment. The machinable parcel barcoded discount is not available for pieces mailed at the Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses.

If all pieces in a mailing are eligible for the machinable parcel barcoded discount under E610 and E620, then the mailing may be paid with meter stamps, permit imprint, or precanceled stamps under the applicable standards. If fewer than 100 percent of the pieces in the mailing are eligible for the machinable parcel barcoded discount, then payment with precanceled stamps is not permitted; use of metered postage is permissible only if exact postage is affixed to each piece in the mailing; and use of permit imprints is permitted only under a manifest mailing system (P910).

(6) Special Services With Standard Mail (DMM E610, P600)

Standard Mail that is subject to the residual shape surcharge (pieces prepared as parcels or that are not letter-size or flat-size as defined in DMM C050) may receive the following additional special services upon payment of the appropriate fees: bulk insurance, return receipt for merchandise, and electronic option Delivery Confirmation. Other Standard Mail is not eligible for any special services. Mail prepared with detached address labels under A060 and mail using Bulk Parcel Return Service (BPRS) also are not eligible for any special services.

Mailpieces for which one or more of these special services are requested must bear a return address under A010 and must bear an ancillary service endorsement that results in return of the mailpiece to the sender if undeliverable as addressed (Address Service Requested, Forwarding Service Requested, or Return Service Requested).

Mailings for which bulk insurance is requested must pay postage and fees through a manifest mailing system (P910).

For electronic option Delivery Confirmation, the following postage payment requirements apply. If electronic option Delivery Confirmation is requested for all the pieces in the mailing and the mailing consists of pieces of identical weight, then postage may be paid with metered postage or permit imprints under the existing standards in P600.2.0 and P600.3.0 (as restructured in this final rule). However, if Delivery Confirmation is not requested for all pieces in the mailing, or if the pieces are not of identical weight, then either the exact metered postage must be affixed to each piece or a manifest mailing system must be used for permit imprint mail under P910. Precanceled stamps may not be used for postage payment on pieces with Delivery Confirmation (see DMM S918.1.5).

If return receipt for merchandise is requested for all the pieces in the mailing and the mailing consists of pieces of identical weight, then postage must be paid with metered postage or permit imprints under the applicable standards in DMM P600.2.0 and P600.3.0. If return receipt for merchandise is not requested for all of the pieces in the mailing, or if the pieces are not identical weight, then either the exact metered postage must be affixed to each piece, or a manifest mailing system must be used for permit imprint mail under P910. Precanceled stamps are not permitted for use with return receipt for merchandise.

(7) Maximum Weight Limit for Automation Heavy Letters (DMM C810.2.3)

The maximum weight for heavy letters that may qualify for automation letter rates also will be 3.3 ounces (.2063 pound).

(8) Barcodes on Automation Flats (DMM C840.3.0)

DMM C840.3.0 has been revised to allow application of two POSTNET barcodes on the address side of flat-size automation rate pieces provided certain conditions are met.

(9) Permissible Use of Electronic Option Delivery Confirmation With Standard Mail Parcels Enclosed in an Express Mail or Priority Mail Drop Shipment (DMM S070 and S500.3.0)

DMM S070 and S500.3.0 are amended to provide for use of electronic Delivery Confirmation with Standard Mail parcels enclosed in Priority Mail Drop Shipment or Express Mail Drop Shipment mailings.

6. Package Services (Formerly Standard Mail (B))—General

a. Name Change and DMM Restructuring

The name of this mail class will change from “Standard Mail (B)” to “Package Services.” Package Services includes Parcel Post (including Parcel Select), Bound Printed Matter, Media Mail (formerly Special Standard Mail), and Library Mail.

The standards in current DMM sections C600, D600, M600, E600, P600, and R600 that pertain to Package Services have been moved to new sections under DMM C700, D700, E700, M700, P700, and R700. Former P700, which contains information on special postage payment systems, is renumbered as P900.

The standards for Package Services contained in current DMM E611 and E613 are consolidated and reorganized into new E710. Current DMM E630 and E650, which contain eligibility standards for Package Services, are moved into new DMM E700. Each of the

four subclasses of Package Services mail has its own eligibility sections: DMM E711 for Parcel Post; DMM E712 for Bound Printed Matter; DMM E713 for Media Mail (formerly Special Standard Mail); and DMM E714 for Library Mail. Information pertaining to eligibility of Package Services mail for destination entry rates is moved to DMM E750. Current DMM M630 is moved and reorganized into new DMM M710 for Parcel Post, DMM M720 for Bound Printed Matter, DMM M730 for Media Mail, and DMM M740 for Library Mail.

b. Combining Different Subclasses of Package Services to Qualify for DSCF and DDU Rates

New provisions are added in DMM E753 that allow mailers to combine different subclasses of Package Services machinable, irregular, and nonmachinable parcels in the same 5-digit sack or on the same 5-digit pallet to qualify for DSCF and DDU rates. For sack preparation, 10 or more parcels of any combination of Package Services subclasses, except for mail at Carrier Route Bound Printed Matter rates, may be placed in the same 5-digit sack and entered at destination SCFs or at destination delivery units. For pallet preparation, 5-digit pallets that contain either 50 pieces and 250 pounds or that contain at least 36 inches of Package Services parcels (any combination of subclasses, except mail at Carrier Route Bound Printed Matter rates) may be prepared and entered at destination SCFs or at destination delivery units. Any Parcel Post pieces and any Presorted Bound Printed Matter in such sacks or on such pallets will be eligible for the appropriate DSCF or DDU rate provided all other eligibility requirements for the applicable destination entry rate are met. Media Mail and Library Mail pieces are subject to their respective single-piece or 5-digit rates depending upon whether the 500-piece minimum quantity requirement for the 5-digit rates is met for each subclass. Mailers must request authorization to use this preparation method and pay postage using permit imprints under a manifest mailing system agreement. See E753 for a full description of the requirements and rate applicability.

7. Parcel Post

a. Parcel Post Rate Highlights

Parcel Post rates will increase by an average of 2.7%. The nonmachinable surcharge for Inter-BMC Parcel Post will increase from $1.65 to $2.00 per parcel. The Parcel Post Origin BMC Presort and BMC Presort discounts will increase from $0.57 to $0.90 per piece and from $0.22 to $0.23 per piece, respectively. The barcoded discount for qualifying Parcel Post (including Parcel Select) machinable parcels will remain at $0.03 per piece. The annual destination entry fee for Parcel Select will increase from $100 to $125.

b. Parcel Post Rate Structure

Pieces weighing less than 16 ounces are now eligible for Parcel Post (including Parcel Select) rates. A one-pound rate is added. The rates for a piece weighing one pound or less and the rates for a piece weighing more than one pound but not more than 2 pounds are the same. A $1.35 nonmachinable surcharge for Intra-BMC Parcel Post and a $1.45 nonmachinable surcharge for DBMC Parcel Select are added.

c. Parcel Post Mail Preparation Changes

(1) Rate Markings (DMM M012 and M710)

There are no changes to the marking requirements for Parcel Post and Parcel Select.

(2) Sack and Pallet Labels (DMM M031, M032, M045, M710)

The abbreviation “STD” or “STD B” on the contents line of sack and pallet labels for Parcel Post (including Parcel Select) is changed to “PSVC” (an abbreviation for Package Services). Labels for 5-digit sacks and pallets prepared to qualify for Parcel Select DSCF and DDU rates are revised to add the processing category “PARCELS” to the contents line to read “PSVC PARCELS 5D.” For containers of combined Package Services parcels, line 2 will also read “PSVC PARCELS 5D.”

(3) Dimensions for Machinable Parcels (DMM C050)

The minimum dimensions for a machinable parcel in DMM C050.4.1a are changed to not less than 6 inches long, 3 inches high,

1/4

inch thick, and 6 ounces in weight. (A mailpiece exactly

1/4

inch thick is subject to the 3

1/2

-inch height minimum under C010.) (The previous minimum weight was 8 ounces unless certain other conditions were met.) Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the machinability standards in new DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization applies only to mail that is both entered at a post office within the authorizing BMC's service area and is for delivery to an address within that BMC's service area. These changes also apply to Standard Mail.

(4) Machinable Parcel Preparation Requirements (DMM M045 and M710)

The rules for sacking and palletizing Parcel Post (including Parcel Select) machinable parcels are clarified to point out that they are optional preparation methods for Parcel Post. In addition, the sacking rules are modified to delete the 1,000 cubic inch option for preparing sacks of machinable parcels. If Parcel Post mailers choose to sack under the machinable parcel preparation standards, sacks for a 5-digit, ASF, or BMC destination have a minimum volume requirement of 10 pieces or 20 pounds.

(5) Postage Payment (P700)

P700 is clarified to indicate that precanceled stamps must not be used for postage payment of any Parcel Post or Parcel Select mail, including matter at single-piece rates.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights

The Postal Service has calculated that Bound Printed Matter (BPM) rates will increase by an average of 9.8%. New destination entry discounts for Presorted rate and Carrier Route rate mailings of Bound Printed Matter are available to encourage the deposit of mail at the destination BMC, SCF, or delivery unit. There is an annual destination entry mailing fee for mail entered at destination entry rates of $125. The barcoded discount for qualifying Presorted Bound Printed Matter machinable parcels will remain at $0.03 per piece.

b. Bound Printed Matter Rate Structure

The local zone rate category has been eliminated for Bound Printed Matter. Destination entry rates for Presorted and Carrier Route Bound Printed Matter entered at destination BMCs, SCFs, and delivery units are provided. To qualify for destination entry rates mailers must pay the annual destination entry mailing fee described above and meet the preparation requirements in DMM E752 that are summarized below. There are no destination entry rates for single-piece Bound Printed Matter.

Another major change is that pieces weighing less than 16 ounces are eligible for Bound Printed Matter rates; however, there are no rate categories for pieces less than 1 pound for single-piece, Presorted, and Carrier Route mail. Therefore, single-piece Bound Printed Matter that weighs less than 1 pound will be charged the 1-pound rate (which is the same as the 1.5-pound rate), and

Presorted and Carrier Route Bound Printed Matter that weighs less than 1 pound will be charged the full 1-pound rate, plus the applicable per piece charge.

c. Bound Printed Matter Mail Preparation Changes

(1) Rate Markings (DMM M012 and M720)

There are two changes to the marking requirements for Bound Printed Matter. The first allows mailers to use the abbreviation “BPM” as the basic (subclass) marking that must appear in the postage area on each piece. The second prohibits mailers from using the “Presorted Standard” (or “PRSRT STD”) marking on Presorted and Carrier Route Bound Printed Matter after a 1-year grace period. Because of the renaming of Standard Mail (B) to Package Services, “Standard” and “STD” are no longer applicable as class of mail descriptions for Bound Printed Matter. Mailers will have until January 1, 2002 to discontinue use of the “Presorted Standard” (or “PRSRT STD”) marking.

(2) Sack and Pallet Labels (DMM M031, M032, M045, M700)

The abbreviations “STD” or “STD B” on the contents line of sack and pallet labels for Bound Printed Matter are changed to “PSVC” (an abbreviation for Package Services).

(3) Address Matching Requirements for Presorted Bound Printed Matter (DMM E712)

A new requirement is added that all 5-digit ZIP Codes included in addresses on pieces claimed at Presorted Bound Printed Matter rates must be verified and corrected within 12 months before the mailing date using a USPS-approved method. The mailer must certify on the postage statement that this standard has been met when the mail is presented to the USPS. This standard applies to each address individually, not to a specific list or mailing. See E712.3.1.

(4) Dimensions for Machinable Parcels (DMM M050)

The minimum dimensions for a machinable parcel in DMM C050.4.1a are changed to not less than 6 inches long, 3 inches high,

1/4

inch thick, and 6 ounces in weight. (A mailpiece exactly

1/4

inch thick is subject to the 3

1/2

-inch height minimum under C010.) (The previous minimum weight was 8 ounces unless certain other conditions were met.) Some parcels may be successfully processed on BMC parcel sorters although they do not conform to the machinability standards in DMM C050.4.1. If this is the case, a BMC plant manager may authorize a mailer to enter such parcels as machinable parcels if the parcels are tested on BMC parcel sorters and prove to be machinable. Such an authorization applies only to mail that is both entered at a post office within the authorizing BMC's service area and is for delivery to an address within that BMC's service area. These changes also apply to Standard Mail.

(5) Sortation for Sacked Presorted Rate Bound Printed Matter (DMM M722)

(a)

General.

All flats and all irregular parcels that weigh less than 10 pounds must be prepared in packages prior to sacking. Machinable parcels are still placed directly in sacks without packaging, and irregular parcels weighing 10 pounds or more must be placed into sacks without packaging. Irregular parcels weighing 10 pounds or more that are placed directly in sacks must be individually enveloped, be placed in a full-length sleeve or wrapper, or be polywrapped. The provisions for preparing sacks to a particular presort destination based on a 1,000 cubic inch minimum are deleted.

(b)

Flats.

For flats prepared in sacks, mailers are required to prepare packages whenever there are at least 10 pieces or 10 pounds of mail, whichever occurs first, for a presort destination (5-digit, 3-digit, ADC), with remaining pieces placed in mixed ADC packages. “Whichever occurs first” means a mailing of identical-weight pieces weighing one pound or less must be packaged using the 10-piece package minimum, and those that weigh more must be prepared using the 10-pound package minimum. (See M722 for information concerning mailings of nonidentical weight pieces.) The maximum weight of any package is 20 pounds, except that 5-digit packages placed in 5-digit sacks may weigh up to 40 pounds. This allows packages prepared in other than 5-digit sacks to be processed on small parcel and bundle sorters (SPBSs). Each physical package is required to contain at least 2 addressed pieces except for mixed ADC packages.

These packages are required to be placed in sacks whenever there are at least 20 pieces or 20 pounds, whichever occurs first, for a sack destination (5-digit, 3-digit, optional SCF, ADC), with remaining packages placed in mixed ADC sacks. “Whichever occurs first” means that if the individual pieces in the mailing weigh one pound or less they must be sacked whenever there are 20 or more pieces to a sack destination, and individual pieces that weigh more than one pound must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.)

(c)

Irregular Parcels That Each Weigh Less Than 10 Pounds.

For Presorted irregular parcels, mailers are required to prepare the mail in packages if the individual pieces weigh less than 10 pounds. Packages must be prepared whenever there are at least 10 pieces or 10 pounds to a presort destination, whichever occurs first. “Whichever occurs first” means a mailing of identical-weight pieces weighing one pound or less must be packaged using the 10-piece package minimum, and those that weigh more must be prepared using the 10-pound package minimum. (See M722 for information concerning mailings of nonidentical weight pieces.) The package destinations are the same as for flat-size pieces (5-digit, 3-digit, ADC, and mixed ADC). Mixed ADC packages may contain fewer than 10 pieces or 10 pounds of mail.

Sortation to ADCs is made using DMM L004 instead of L603, and mixed ADC sacks are labeled using DMM L004 instead of L604. The maximum weight of any package is 20 pounds, except that 5-digit packages placed in 5-digit sacks may weigh up to 40 pounds. Each physical package is required to contain at least 2 addressed pieces except for mixed ADC packages.

There is one exception to the packaging requirement. Mailers of irregular parcel BPM prepared in 5-digit sacks, may at their option, prepare such pieces loose in sacks without physical packaging provided the number of pieces in the sack meets the minimum package size and sack size requirements and the pieces in the 5-digit sack(s) are individually wrapped or enveloped.

Packages must be placed in 5-digit, 3-digit, optional SCF, and ADC sacks whenever there are 10 or more pieces or 20 or more pounds, whichever occurs first, for a sack destination. Remaining packages must be placed in mixed ADC sacks. “Whichever occurs first” means that if the individual pieces in the mailing weigh two pounds or less they must be sacked whenever there are 10 or more pieces to a sack destination, and individual pieces weighing more than two pounds must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.)

(d)

Irregular Parcels That Each Weigh 10 or More Pounds.

Presorted irregular parcels that each weigh 10 or more pounds are not packaged, but must be placed in 5-digit, 3-digit, optional SCF, and ADC sacks whenever there are 20 or more pounds for a sack destination.

Remaining pieces are placed in mixed ADC sacks. Sortation to ADCs is made using DMM L004 instead of L603, and mixed ADC sacks are labeled using DMM L004 instead of L604. Irregular parcel-size pieces that each weigh 10 or more pounds are required to be individually enveloped, be placed in a full-length sleeve or wrapper, or be polywrapped prior to sacking.

(e)

Machinable Parcels.

For machinable parcels, sacks are prepared when there are at least 10 pieces or 20 pounds, whichever occurs first, for a required or optional sack level. The option to use 1,000 cubic inches as a minimum sacking criterion is deleted. The new “whichever occurs first” criterion means that if the individual pieces in the mailing weigh two pounds or less they must be sacked whenever there are 10 or more pieces to a sack destination, and individual pieces weighing more than two pounds must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.) In addition, an optional ASF sack sortation level using DMM L602 is added for pieces that are entered at DBMC rates.

(6) Sortation for Sacked Carrier Route Rate Bound Printed Matter (DMM M020, M723)

(a)

Flats.

For flat-size mail, the basic eligibility requirement to qualify for carrier route rates of a minimum of 10 pieces/20 pounds/1,000 cubic inches of mail for the same carrier route is changed to require a minimum of 10 pieces or 10 pounds of mail, whichever occurs first, prepared in a package or packages for the same carrier route. “Whichever occurs first” means a mailing of identical-weight pieces weighing one pound or less must be packaged using the 10-piece package minimum, and those that weigh more than one pound must be prepared using the 10-pound package minimum. (See M722 for information concerning mailings of nonidentical weight pieces.)

In addition, the maximum weight of any flat-size package is 40 pounds. Each physical package must contain a minimum of two addressed pieces. The only exception to a minimum two-piece package is that the last physical package to an individual carrier route destination may consist of a single addressed piece provided that all other packages to that carrier route destination contained at least two addressed pieces and that the total group of pieces to that carrier route meets the applicable Carrier Route rate eligibility minimum in E712 (for flats, 10 pieces or 10 pounds, whichever occurs first).

Packages of flat-sized mail must be sacked for an individual carrier route whenever there are at least 20 pieces or 20 pounds of mail for a carrier route, whichever occurs first. The new “whichever occurs first” criterion means that if the individual pieces in the mailing weigh one pound or less they must be sacked whenever there are 20 or more pieces to a sack destination, and individual pieces weighing more than one pound must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.)

Remaining carrier route packages must be sacked in 5-digit carrier routes sacks or, at the mailer's option, sacked to 5-digit scheme carrier routes sacks using L001.

(b)

Irregular Parcels Weighing Less Than 10 Pounds Each.

For mailings of Carrier Route irregular parcels that each weigh less than 10 pounds, mailers must prepare the mail in packages prior to sacking. A package must be prepared whenever there are at least 10 pieces or 20 pounds of mail to an individual carrier route, whichever occurs first. The new “whichever occurs first” criterion means that if the individual pieces in the mailing weigh two pounds or less they must be packaged whenever there are 10 or more pieces to a carrier route destination, and individual pieces weighing more than two pounds must be packaged when there are 20 or more pounds to a carrier route destination. (See M722 for information concerning mailings of nonidentical weight pieces.)

The maximum weight of any package is 40 pounds. Each physical package is required to contain a minimum of two addressed pieces. The only exception to a minimum two-piece package is that the last physical package to an individual carrier route destination may consist of a single addressed piece provided that all other packages to that carrier route destination contain at least two addressed pieces and that the total group of pieces to that carrier route meets the applicable Carrier Route rate eligibility minimum in E712 (for irregular parcels weighing less than 10 pounds, 10 pieces or 20 pounds, whichever occurs first).

Carrier route packages of irregular parcels must be placed in direct carrier route sacks when there are 10 or more pieces or 20 or more pounds to a carrier route, whichever occurs first. The new “whichever occurs first” criterion means that if the individual pieces in the mailing weigh two pounds or less they must be sacked whenever there are 10 or more pieces to a sack destination, and individual pieces weighing more than two pounds must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.) Carrier route packages that cannot be placed in direct carrier route sacks must be placed in 5-digit carrier routes sacks. Preparation of 5-digit scheme carrier routes sacks for irregular parcels is not permitted.

(c)

Irregular Parcels That Each Weigh 10 or More Pounds.

For mailings of Carrier Route irregular parcels that each weigh 10 or more pounds, the mail is not prepared in packages, but must be placed only in direct carrier route sacks that each contain a minimum of 20 pounds of mail. Smaller volumes in a carrier route sack are not permitted.

(d)

Machinable Parcels.

Machinable parcels will be permitted to qualify for Carrier Route Bound Printed Matter rates if placed in direct carrier route sacks that each contain a minimum of 10 pieces or 20 pounds of mail, whichever occurs first. (Machinable parcels prepared on pallets under M045 are not eligible for Carrier Route Bound Printed Matter rates.) The new “whichever occurs first” criterion means that if the individual pieces in the mailing weigh two pounds or less they must be sacked whenever there are 10 or more pieces to a sack destination, and individual pieces that weigh more than two pounds must be sacked when there are 20 or more pounds to a sack destination. (See M722 for information concerning mailings of nonidentical weight pieces.) Smaller volumes in a sack are not permitted.

(e)

Residual Pieces.

The provisions for marking and sortation of residual pieces that do not qualify for the Carrier Route Bound Printed Matter rates have changed. Such pieces may no longer be sorted to carrier routes and may not bear the “Carrier Route Presort” marking. Such residual pieces are required to be marked and sorted in accordance with the requirements for Presorted rate mailings and will continue to qualify for the Presorted rates (see M723.1.5).

(7) Preparation of Packages on Pallets (DMM M040 and M045)

Flats prepared as packages on pallets are permitted to use optional scheme sort (DMM L001). For flat-size pieces prepared in a copalletized mailing job that contains both a Presorted rate mailing and a Carrier Route rate mailing, separate 5-digit pallets must be prepared for carrier route mail (optional 5-digit scheme carrier routes and required 5-digit carrier routes pallets), and separate 5-digit pallets must be

prepared for Presorted rate mail (optional 5-digit scheme and required 5-digit pallets).

For irregular parcels prepared as packages on pallets, mailers must prepare co-palletized Carrier Route and Presorted mail on the same 5-digit pallet. Scheme sortation is not permitted for packages of irregular parcels on pallets.

For flats and irregular parcels, packages are required to be made to a required package destination (carrier route, 5-digit, 3-digit, ADC) whenever there are 10 or more pieces or 10 or more pounds for a presort destination, whichever occurs first, except that the last package to a presort destination may weigh less than 10 pounds. “Whichever occurs first” means a mailing of identical-weight pieces weighing one pound or less must be packaged using the 10-piece package minimum, and those that weigh more must be prepared using the 10-pound package minimum. (See M722 for information concerning mailings of nonidentical weight pieces.) When there are at least 10 pieces, but fewer than 10 pounds for a presort destination, the pieces must be prepared in a single physical package.

ADC packages must be prepared using DMM L004 instead of L603. The maximum physical package size is 20 pounds except as follows. For Presorted rate mail, 5-digit packages may weigh up to 40 pounds if placed on a 5-digit scheme (flats only) or 5-digit pallet. For Carrier Route rate mail, flat-size carrier route packages may weigh up to 40 pounds if they are placed on 5-digit scheme carrier routes, or 5-digit carrier routes pallets, and irregular parcel-size carrier route packages may weigh up to 40 pounds if they are placed on a 5-digit pallet. Each physical package is required to contain at least 2 pieces.

When individual pieces weigh 10 or more pounds, they cannot be prepared as packages on pallets (except in those instances where 40-pound packages are permitted as described above). Such pieces that weigh 10 or more pounds are required to be prepared either as machinable parcels on pallets (eligible only for Presorted rates) or in sacks under M722 (Presorted rates) and/or M723 (Carrier Route rates). The new 20-pound package weight limit for flats and irregular parcels allows the packages to be processed on small parcel and bundle sorters (SPBSs).

(8) PAVE Certification and Package Reallocation

A requirement for the use of standardized documentation or Presort Accuracy Validation and Evaluation (PAVE)-certified software for Bound Printed Matter has not been added to the standards. However, the Postal Service plans to develop PAVE tests for Bound Printed Matter in the future. At that time, standardized documentation requirements will be developed and a Federal Register proposed rule to require either use of standardized documentation or use of PAVE-certified software for Presorted and Carrier Route Bound Printed Matter will be published for comment. Because use of optional package reallocation to protect SCF and BMC pallets requires use of PAVE-certified software, use of package reallocation for Bound Printed Matter flats is not available at this time. Use of package reallocation will be offered for Bound Printed Matter once use of PAVE-certified software becomes available.

(9) Bedloaded Bundles (DMM M722, M723)

The provisions for preparing bedloaded bundles in previous DMM M630.7.0 have been removed. A “bundle” is described as a group of packages secured together as a unit that equates to a sack. The Postal Service does not believe that any mailers are currently preparing true bedloaded “bundles,” although some mailers do prepare bedloaded “packages.” The Postal Service is implementing preparation rules for Bound Printed Matter that are designed to reduce handling and processing costs. Bedloaded packages or bundles are generally not cost-efficient for the Postal Service to handle and process. Therefore, these final sortation rules eliminate the option to prepare bedloaded bundles and allow mailers to prepare bedloaded packages only for mail that is prepared for and entered at the DDU rates (because DDU rate mail must be unloaded by the mailer). Such bedloaded packages may weigh up to 40 pounds each. See M722 and M723.

(10) Destination Bulk Mail Center (DBMC) Rates (DMM E752)

Destination Bulk Mail Center (DBMC) rates apply to Presorted and Carrier Route Bound Printed Matter mailings that are prepared in any permissible sack or pallet level and that are deposited at a BMC or ASF, are addressed for delivery to one of the 3-digit ZIP Codes served by the BMC or ASF where deposited that are listed in Exhibit E751.1.3, and are placed in a sack or pallet that is labeled to the BMC or ASF where deposited, or labeled to a postal facility within the service area of that BMC or ASF under Exhibit E751.1.3.

Flats or irregular parcels in an ADC sack or in a palletized ADC package are eligible for the DBMC rates if the ADC facility ZIP Code (as shown in Line 1 of the corresponding sack label or the ADC facility that is the destination of the palletized ADC package as would be shown on an ADC sack label for that facility using DMM L004, Column B) is within the service area of the BMC or ASF at which the sack is deposited.

Flats or irregular parcels in mixed ADC sacks qualify for the DBMC rates only if all the pieces in the sack are for the service area of the DBMC or DASF as shown in Exhibit E751.1.3. Mailers who opt to claim the DBMC rates for mail in mixed ADC sacks are required to prepare separate mixed ADC sacks for pieces eligible for and claimed at the DBMC rate and for pieces not claimed at the DBMC rate (one set of mixed ADC sacks containing packages qualifying for DBMC rates and one set of mixed ADC sacks for packages that do not qualify for DBMC rates). For this purpose, DMM E650 and E752 specify that mailers assign ADC packages to the respective qualifying or nonqualifying mixed ADC sacks based on the “label to” ZIP Code for the ADC. For mixed ADC packages, separate mixed ADC packages must be prepared based on the individual addresses on the pieces. That is, a mixed ADC package(s) for pieces within the ASF or BMC entry point must be prepared and a separate mixed ADC package(s) for pieces outside the entry ASF or DBMC area (using either Exhibit E650.5.1 or E751.1.3) must be prepared.

Machinable parcels palletized under M045 or sacked under M722 may be sorted to destination BMCs under L601 or to destination BMCs and ASFs under L601 and L602. Sortation of machinable parcels to ASFs is optional but is required to be eligible for DBMC rates for mail with a 3-digit ZIP Code prefix within the ASF service area in Exhibit E751.1.3. Mailers may opt to sort some or all machinable parcels for ASF service area ZIP Codes to ASFs only when the mail will be deposited at the respective ASFs where the DBMC rates are claimed, under applicable volume standards, using L602. Mailers may also opt to sort machinable parcels only to destination BMCs under L601. If machinable parcels are sorted to only destination BMCs under L601, then only mail for 3-digit ZIP Codes served by a BMC as listed in Exhibit E751.1.3 would be eligible for DBMC rates (mail for 3-digit ZIP Codes served by an ASF in Exhibit E751.1.3 sorted to the BMC pallet would not be eligible for DBMC rates, nor would mail for 3-digit ZIP Codes that do not appear in Exhibit E751.1.3).

Machinable parcels in mixed BMC sacks or on mixed BMC pallets that are sorted to the origin BMC under M045 or M722 are eligible for the DBMC rates only if both of the following conditions are met: (1) The mixed BMC sack or pallet is entered at the origin BMC facility to which it is labeled, and (2) the pieces are for 3-digit ZIP Codes listed as eligible destination ZIP Codes for that BMC in Exhibit E751.1.3.

(11) Destination Sectional Center Facility (DSCF) Rates (DMM E752)

Destination Sectional Center Facility (DSCF) rates apply to Presorted and Carrier Route Bound Printed Matter mailings that meet all of the following conditions:

(a) Are eligible for and prepared to qualify for Presorted or Carrier Route rates.

(b) Are deposited at an SCF listed in L005, except that machinable parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit E751.6.0 must be entered at the corresponding BMC facility shown in that Exhibit (not at the SCF) unless an exception is requested and granted. An exception to Exhibit 751.6.0 must be requested at least 15 days in advance of the mailing in writing from the area manager of operations support who has jurisdiction over the BMC and SCF. Exceptions, if granted, will be for a limited time.

(c) Are addressed for delivery to one of the 3-digit ZIP Codes served by the SCF where deposited under L005.

(d) Are placed in a sack or on a pallet (subject to the standards for the rate claimed) that is labeled to the DSCF where deposited, or labeled to a postal facility within the service area of that SCF (see L005).

Flats in sacks for the carrier route, 5-digit carrier routes scheme, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort levels may claim DSCF rates under the conditions described above. Flats on 5-digit scheme carrier routes, 5-digit carrier routes, 5-digit scheme, 5-digit, 3-digit, SCF, and ASF pallets may claim DSCF rates under the conditions described above.

Irregular parcels in sacks for the carrier route, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort levels may claim DSCF rates under the conditions described above. Irregular parcels on 5-digit, 3-digit, SCF, and ASF pallets may claim DSCF rates under the conditions described above.

Machinable parcels in direct carrier route sacks, in 5-digit sacks, or on 5-digit pallets may claim DSCF rates under the conditions described above. Machinable parcels prepared to claim Carrier Route rates are eligible for DSCF rates only when prepared in direct carrier route sacks (machinable parcels qualify for Carrier Route rates only when prepared in direct carrier route sacks). Presorted rate machinable parcels on 5-digit pallets may claim DSCF rates under the conditions described above. Note that palletized machinable parcels for the 5-digit ZIP Codes listed in Exhibit E751.6.0 must be entered at the applicable BMC to claim DSCF rates.

For mailings prepared for the DSCF rate in pallet boxes, the height of the pallet box may not exceed 60 inches (excluding the pallet) as is currently required for Parcel Select DSCF rate mail (DMM M041.4.2).

(12) Destination Delivery Unit (DDU) Rates (DMM E752)

New Destination Delivery Unit (DDU) rates apply to Presorted and Carrier Route rate Bound Printed Matter mailings that are addressed for delivery within the ZIP Code(s) served by the destination delivery unit and are deposited at the appropriate destination delivery unit facility.

For flat-size Presorted Bound Printed Matter, DDU rates may be claimed only for individual pieces that weigh more than one pound. (This minimum weight may increase in the near future dependent on AFSM 100 machinability requirements.) To qualify for DDU rates, Presorted rate flats must be prepared in 5-digit sacks, or on optional 5-digit scheme or required 5-digit pallets, or be prepared as bedloaded 5-digit packages. The Drop Shipment Product must be used to determine the correct destination entry facility for the 5-digit destination of the container. If the Drop Shipment Product lists multiple facilities for a single 5-digit ZIP Code, the mailer must inquire about the correct drop site when contacting the DDU to schedule an appointment.

For flat-size Carrier Route Bound Printed Matter, DDU rates may be claimed for mail prepared in carrier route, optional 5-digit carrier routes scheme, and 5-digit carrier routes sacks; on 5-digit scheme carrier routes scheme and 5-digit carrier routes pallets; or in bedloaded carrier route packages. There is no minimum weight for individual flat-size pieces to qualify for Carrier Route rate flat-size pieces. Carrier Route rate flat-size mail must be entered at the facility where the carrier cases flat-size mail as shown in the Drop Shipment Product.

For irregular parcels of Carrier Route Bound Printed Matter, DDU rates may be claimed for mail prepared in carrier route and, for pieces each weighing less than pounds only, in 5-digit carrier routes sacks. For irregular parcels of Presorted Bound Printed Matter, DDU rates may be claimed for mail prepared in 5-digit sacks or on 5-digit pallets. Irregular parcels prepared as bedloaded carrier route packages or bedloaded 5-digit packages also are eligible for DDU rates.

For machinable parcels of Carrier Route Bound Printed Matter, DDU rates are available for carrier route parcels prepared in direct carrier route sacks. For machinable parcels of Presorted Bound Printed Matter, DDU rates are available for parcels prepared in 5-digit sacks or on 5-digit pallets.

To claim the DDU rates, both irregular and machinable parcels must be entered at the facility that delivers parcels to the addresses appearing on the deposited pieces. Mailers must use the Drop Shipment Product to determine the location of the 5-digit delivery facility and whether it can handle pallets. When the Drop Shipment Product shows that parcels for a single 5-digit ZIP Code area is delivered out of more than one postal facility, then the facility from which the majority of city carrier routes are delivered is the facility at which the DDU mail must be entered, unless the 5-digit ZIP Code is listed in Exhibit E751.7.0 or Exhibit E751.8.0. For ZIP Codes in Exhibit E751.7.0 and Exhibit E751.8.0, mailers would use the name of the facility associated with the 5-digit ZIP Code on the respective exhibit as the facility at which DDU mail for that 5-digit ZIP Code mail must be entered. Mailers who palletize machinable and irregular parcels must also determine if the 5-digit facility is able to handle pallets using the Drop Shipment Product. If the 5-digit facility is unable to handle pallets, and a mailer transports mail to the DDU facility on pallets, the driver will have to unload the pallets into a container specified by the delivery unit.

(13) Destination Entry Mail Preparation—Plant-Verified Drop Shipment (PVDS) (DMM E752)

Pieces must be part of a mailing of at least 300 pieces of Presorted Bound Printed Matter or part of a mailing of at least 300 pieces of Carrier Route Bound Printed Matter to qualify for DBMC, DSCF, and DDU rates. When Presorted Bound Printed Matter or Carrier Route Bound Printed Matter mailings are submitted under PVDS procedures, mailers may use the total of all line items for all destinations on a PVDS register or PVDS postage statement to meet the respective 300-piece minimum volume requirements. This means that a mailer may enter fewer than 300 pieces per Presorted or Carrier Route mailing at

an individual destination, provided there is a total of at least 300 Presorted rate pieces and/or 300 Carrier Route rate pieces for all of the entry points for that single mailing job listed on the PVDS register or PVDS postage statement.

(14) Detached Address Label Mailings (DMM A060)

The preparation requirements for use of DALs with Bound Printed Matter mailings are revised. Mailers must prepare Bound Printed Matter with DALs either on pallets or in sacks as described in DMM A060.

When prepared on pallets, mailers may enter Bound Printed Matter prepared with DALs at any post office provided only 5-digit pallets are prepared and if the following additional requirements and restrictions are met. The 5-digit pallets must meet the minimum volume and other requirements for pallet preparation under M040 and M045, except that for flat-size mail, separate 5-digit pallets for Carrier Route rate and for Presorted rate mail are not required. The mail must not be prepared on pallets when the Drop Shipment Product indicates that the delivery unit that serves the 5-digit pallet destination cannot handle pallets. The destination delivery unit is determined using the Drop Shipment Product under the provisions for the DDU rate in E752. (For delivery units that cannot handle pallets, mail with DALs is required to be prepared in sacks.) The trays or cartons of DALs must be prepared under A060.3.0 and placed on the same pallet as the Bound Printed Matter. In addition, the Bound Printed Matter and the trays of DALs must be stretch-wrapped together as one unit on the pallet.

For mail prepared with DALs in sacks, the matter must be prepared in 5-digit sacks and must be entered at the destination delivery unit. The destination delivery unit must be determined using the Drop Shipment Product under the provisions for the DDU rate in DMM E752. The DALs must be packaged under A060.3.0 and presented to the destination delivery unit with the accompanying items to be distributed with the DALs. The standards for DALs are amended to clarify that items mailed with DALs may not be combined with any special services (new A060.1.7). In addition, the standards for DALs in A060.4.2 are amended to specify that an undeliverable-as-addressed DAL is disposed of as waste, and the accompanying item is treated as specified by the mailer under A060.4.1.

(15) Ancillary Service Endorsements

The handling of undeliverable-as-addressed Bound Printed Matter pieces that are not mailed with a special service or an ancillary service endorsement will be the same as for Standard Mail. Undeliverable-as-addressed Bound Printed Matter pieces mailed with no special service (

e.g.,

Delivery Confirmation, insured), and with no ancillary service endorsement, will be disposed of by the USPS as waste at the delivery unit. Mailers of Bound Printed Matter who want to have their undeliverable-as-addressed pieces forwarded and returned must choose the appropriate ancillary service endorsement and print it on their pieces to obtain such service. There are no other changes to the treatment of undeliverable-as-addressed Package Services mail (except for Bound Printed Matter prepared with detached address labels under DMM A060.4.2 as described earlier.)

(16) Postage Payment

DMM P700 is amended to clarify that precanceled stamps may not be used for payment of Bound Printed Matter postage.

9. Media Mail (Formerly Special Standard Mail)

a. Media Mail Rate Highlights

Media Mail (formerly Special Standard Mail) rates will increase by an average of 6.3%. The barcoded discount for qualifying Media Mail remains at $0.03 per piece. There are separate rate schedules for Media Mail and Library Mail as the shared rate structure is discontinued. The annual presort mailing fee for Media Mail increases to $125.

b. Media Mail Rate Structure

There are separate rate schedules for Media Mail and Library Mail.

c. Media Mail (formerly Special Standard Mail) Preparation Changes

(1) Rate Marking (DMM M012 and M730)

Special Standard Mail is renamed “Media Mail,” and the marking that is required to appear on each piece is changed from “Special Standard” to “Media Mail.” There is a phase-in period until January 1, 2002, to give mailers time to adjust to this change and deplete any existing stocks of permit imprints that may bear the “ Special Standard” marking.

(2) Sack and Pallet Labels (DMM M031, M045, and M730)

The abbreviation “STD” or “STD B” that currently appears on sack and pallet labels for Package Services mailings is changed to “PSVC” (an abbreviation for Package Services).

(3) Clarification of Preparation Requirements

Former M630.4.0 provided for preparing Media Mail as bedloaded bundles under former M630.7.0. However, former M630.7.0 provided only for preparation of Bound Printed Matter as bedloaded bundles, and the eligibility requirements for the Media Mail rates in former E630.4.0 provided only for preparation of Media Mail in sacks, on pallets, or as outside parcels prepared as prescribed by the postmaster of the mailing office. Accordingly, the provisions for preparing bedloaded bundles of Media Mail are deleted from M730 that contains the requirements for presorted Media Mail.

Former E630.4.0 (renumbered as E713) provided for preparing 5-digit and BMC bundles of Media Mail on pallets. The terminology in new E713 is changed to provide for “packages” of Media Mail on pallets. Furthermore, the reference in former M630.4.0 that referred to preparing mail according to the machinable parcel preparation rules is not contained in new M730. There were no provisions for such preparation to qualify for presorted Media Mail rates in former E630.4.0, and such provisions were not added to new E713. The option to prepare sacks and qualify for presorted 5-digit or BMC rates based on a minimum of 1,000 cubic inches of mail is deleted; however, the eight-piece or 20-pound minimum per 5-digit sortation level and the four-piece or 20-pound minimum per BMC sortation level is retained.

(4) Postage Payment (DMM P700)

DMM P700 is amended to clarify that precanceled stamps may not be used for payment of Media Mail postage.

10. Library Mail

a. Library Mail Rate Highlights

Library Mail rates will increase by an average of 4.9%. The barcoded discount for qualifying Library Mail remains at $0.03 per piece. Separate rate schedules are implemented for Media Mail and Library Mail as the shared rate structure is discontinued. The annual presort mailing fee for Library Mail is increased to $125.

b. Library Mail Rate Structure

There are separate rate schedules for Library Mail and Media Mail.

c. Library Mail Preparation Changes

(1) Rate Markings (DMM M012 and M740)

The optional use of “Library Rate” as a rate marking for Library Mail is being discontinued. Matter mailed at Library Mail rates will be required to use only the marking “Library Mail.” There is a phase-in period until January 1, 2002, to give mailers time to adjust to this change and deplete any existing stocks of permit imprints that may bear the “Library Rate” marking.

(2) Sack and Pallet Labels (DMM M031, M045, and M740)

The abbreviation “STD” or “STD B” that currently appears on sack and pallet labels for Package Services mailings is changed to “PSVC” (an abbreviation for Package Services).

(3) Sack Preparation Minimums (DMM M740)

The option to prepare sacks and qualify for presorted 5-digit or BMC rates based on a minimum of 1,000 cubic inches of mail is deleted (see M740).

(4) Postage Payment (DMM P700)

DMM P700 is amended to clarify that precanceled stamps may not be used for payment of Library Mail postage.

11. Special Services and Other Services

a. Address Changes for Election Boards (DMM A910)

The fee will increase from $0.17 to $0.23 for each address card. There are no classification changes for this service. See DMM R900.12.3.

b. Address Correction Notifications (DMM F030)

The manual (hard-copy) fee will increase from $0.50 to $0.60 for each notification. There is no change to the automated (electronic) fee notification (currently $0.20 each). There are no classification changes for this service. See DMM R900.1.0.

c. Bulk Parcel Return Service (DMM S924)

The per piece charge will decrease from $1.75 to $1.62 for each piece returned under Bulk Parcel Return Service (BPRS). The annual BPRS permit fee will increase from $100 to $125. A new annual accounting fee of $375 will be required for BPRS. This fee covers the costs of providing BPRS account maintenance services to mailers and is consistent with accounting fees charged for other special services. Current BPRS permit holders will have until February 5, 2001, to pay their initial annual accounting fee. See DMM R900.3.0.

No special services are available for pieces returned through BPRS.

d. Business Reply Mail

(1) Business Reply Mail (BRM) (DMM S922)

The annual business reply mail (BRM) permit fee will increase from $100 to $125.

The per piece charge for basic BRM (BRM without an annual accounting fee) will increase from $0.30 to $0.35. This per piece charge is in addition to single-piece First-Class Mail (or Priority Mail) postage. The per piece charge for high-volume BRM (BRM with an annual accounting fee) will increase from $0.08 to $0.10. This per piece charge is in addition to single-piece First-Class Mail (or Priority Mail) postage. The annual accounting fee, required for high-volume BRM, will increase from $300 to $375.

A provision in the DMCS that required permit holders to maintain an advance deposit account solely for the use of business reply mail has been deleted. Therefore, permit holders will be able to maintain a single advance deposit account from which postage, fees, and per piece charges for multiple items can be deducted (e.g., BRM, QBRM, merchandise return service, incoming shortpaid mail, address correction notices, etc.). If permit holders request separation of charges, then they must pay an annual accounting fee for each separation.

(2) Qualified Business Reply Mail (QBRM) (DMM E150, S922)

The discounted automation rate for qualified business reply mail (QBRM) letters will increase from $0.30 to $0.31 as described under the First-Class Mail Summary. The discounted automation rate for QBRM cards will decrease from $0.18 to $0.17. The annual accounting fee, required to participate in QBRM, will increase from $300 to $375.

QBRM will be split into two categories with different per piece charges to mirror the current fee structure of regular BRM. The first category is the existing classification and will be called “basic” QBRM. The per piece charge for basic QBRM will remain at $0.05. This per piece charge is in addition to the lower QBRM First-Class Mail postage listed in R100. See DMM R900.4.3.

A new classification, called “high-volume” QBRM, recognizes that, for large volume users, some costs are relatively fixed, rather than varying with marginal volume. High-volume QBRM includes a lower per piece charge and requires payment of a new quarterly fee in addition to the annual accounting fee. The per piece charge for high-volume QBRM will be $0.01. This per piece charge is in addition to the discounted automation QBRM First-Class Mail rate listed in R100. The quarterly fee will be $1,800 per quarter (in addition to the $375 annual accounting fee). Mailers may “opt in” to high-volume QBRM by paying the quarterly fee at any time as their volume warrants, thereby paying lower per piece charges when they expect a larger volume of returned pieces. See DMM R900.4.4.

Quarterly fees apply to any three consecutive calendar months, beginning with the first calendar day of the first month and ending on the last calendar day of the third month. If the quarterly fee is paid on or before the 15th of the month, then the quarterly fee is counted as if it was paid on the first day of that calendar month, but the lower per piece charges begin on the day the fee is paid. If the quarterly fee is paid after the 15th of the month, then the lower per piece charges begin immediately, but the quarterly fee is credited as if it was paid on the first day of the following calendar month and continues through three calendar months. Mailers may not apply for “retroactive” refunds of per piece charges for periods before the quarterly fee was paid.

(3) Bulk Weight Averaged Nonletter-Size Business Reply Mail (DMM S922)

Language has been added to clarify that the monthly maintenance fee applies only to bulk weight averaged nonletter-size BRM. The per piece charge will remain at $0.01. The maintenance fee will remain at $600 per month. The annual business reply mail permit fee will increase from $100 to $125. The annual accounting fee, required to participate in weight averaged nonletter-size BRM, will increase from $300 to $375. See DMM R900.4.5.

e. Carrier Sequencing of Address Cards (DMM A920)

The fee will increase from $0.20 to $0.25 for each card removed due to an incorrect or undeliverable address and for each card added with a new address. There are no classification changes for this service. See DMM R900.2.0.

f. Certificate of Mailing (DMM S914)

For individual pieces, the fee for the original certificate of mailing will increase from $0.60 to $0.75. The firm

mailing book fee will remain at $0.25; the fee for an additional copy of a certificate of mailing will increase from $0.60 to $0.75.

For bulk quantities, the fee for one certificate of mailing (for the first 1,000 pieces) will increase from $3.00 to $3.50. There is no change to the fee for a certificate for each additional group of 1,000 pieces (currently $0.40). The fee for an additional copy of a bulk certificate of mailing will increase from $0.60 to $0.75.

There are no classification changes for this service. See DMM R900.6.0.

g. Certified Mail (DMM S912)

The fee will increase from $1.40 to $1.90 in order to cover newly estimated costs for this service. See DMM R900.7.0.

h. Collect on Delivery (COD) (DMM S921)

Fees will increase by $.50 for every $100 value level. The maximum COD value level will increase from $600 to $1,000, with a fee increment of $1.00 for each $100 increment. The fees for registered COD, the notice of nondelivery, and the alteration of COD charges (Form 3849-D) will remain at current levels. The money order limit will remain at $700; therefore, if a recipient pays in cash for COD amounts over $700, then the Postal Service will send two postal money orders to the mailer (and collect two money order fees from the recipient). See DMM R900.8.0.

i. Correction of Mailing Lists (DMM A910)

The charge per correction will increase from $0.20 to $0.25. In conjunction, the minimum charge per list for lists with fewer than 30 addresses will increase from $7.00 to $7.50. There are no classification changes for this service. See DMM R900.12.0.

j. Delivery Confirmation (DMM S918)

The fee for retail option Priority Mail Delivery Confirmation (

i.e.,

purchased by a customer over a retail counter) will increase from $0.35 to $0.40. The fee for retail option Package Services Delivery Confirmation will decrease from $0.60 to $0.50. There will continue to be no fee for electronic option Delivery Confirmation for Priority Mail. The fee for electronic option Delivery Confirmation for Package Services will decrease from $0.25 to $0.12.

Electronic option Delivery Confirmation service will be extended to Standard Mail parcels that are subject to the residual shape surcharge (both Regular and Nonprofit subclasses). Delivery Confirmation service will not be available for the Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses. No retail option will be available for Standard Mail. The fee for electronic option Delivery Confirmation for Standard Mail will be $0.12 per piece, which mirrors the new fee for Package Services. See DMM R900.9.0.

k. Express Mail Insurance (DMM S500)

Fees for Express Mail insurance will increase. There are no classification changes for this service. See DMM R900.10.0.

l. Insurance (DMM S913)

Fees for insurance will increase for all value levels. The fee for unnumbered insurance (items valued at $50 or less) will increase from $0.85 to $1.10. Separate bulk discounts for unnumbered and numbered insurance have been added. In addition, bulk insurance will be available for Standard Mail parcels that are subject to the residual shape surcharge (both Regular and Nonprofit subclasses). Bulk insurance will not be available for the Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses. Regular insurance is not available for Standard Mail. See DMM R900.11.0.

The Postal Service has removed the requirement that insured pieces sent at First-Class Mail and Priority Mail rates be marked “Standard Mail Enclosed.” In addition, merchandise return service (MRS) customers (those who use MRS labels to return a parcel to the permit holder) will be permitted to add insurance to an MRS parcel at their own discretion and expense.

m. Mailing Fees

Presort mailing fees and destination entry mailing fees for all classes of mail will increase. Specific fees and classification changes are included under the separate summaries for each class of mail.

n. Merchandise Return Service (DMM S923)

The per piece (transaction) fee for parcels returned to the permit holder via merchandise return service (MRS) will be eliminated. A new annual accounting fee of $375 is established for MRS. This fee covers the costs of accounting services provided to permit holders and is consistent with accounting fees charged for other special services. Current MRS permit holders have until February 5, 2001, to pay their initial annual accounting fee. A separate annual accounting fee must be paid for each separation of charges and separate billing provided. This makes the application of the new annual accounting fee consistent with Business Reply Mail. See DMM R900.13.0.

If the permit holder has not specified insurance on the MRS label, then customers (those who use merchandise return service labels to return a parcel to the permit holder) will be permitted to add insurance to a MRS parcel at their own discretion and expense. No other special services may be added by the sender. Previously, insurance could be added to a parcel only if specified by the permit holder. The Postal Service has removed the requirement that MRS parcels sent at First-Class Mail and Priority Mail rates be marked “Standard Mail Enclosed.”

Parcels that do not bear a class or rate marking, regardless of weight, will be treated as Parcel Post and will be charged Parcel Post Inter-BMC/ASF rates.

These same changes apply to penalty merchandise return service.

o. Money Orders (DMM S020)

The fee for domestic money orders will decrease from $0.80 to $0.75 per money order. The fee for APO/FPO money orders will decrease from $0.30 to $0.25 per money order. The inquiry fee will remain at $2.75. There are no classification changes for this service; the maximum amount for a single money order remains at $700. See DMM R900.15.0.

p. Parcel Airlift Service (PAL) (DMM S930)

There are no fee or classification changes for this service. See DMM R900.16.0.

q. Permit Imprint Application Fee (DMM P040)

The application fee for permit imprints will increase from $100 to $125. Other kinds of permit fees (

e.g.,

business reply mail) are covered under separate summary sections. See DMM R900.17.0.

r. Pickup Service (DMM D010)

The pickup service fee will increase from $8.25 to $10.25 per pickup. There are no classification changes for this service. See DMM R900.18.0.

s. Post Office Boxes, Caller Service, and Reserve Call Numbers (DMM D910 and D920)

The Postal Rate Commission has approved the Postal Service's proposal to restructure post office box fee groups and to establish fees for each of the new groups. A nonrefundable fee for each

key, over two, requested by a customer has been established at $4.00. In addition, a $10.00 fee for a lock replacement initiated by a customer as been established.

The new structure for post office boxes aligns post office box fees more closely with costs by 5-digit ZIP Code. These costs include estimated real estate value of the space used to provide post office boxes.

The Postal Service submits that this post office box reclassification will result in fairer, more equitable post office box fees for all customers because the fees will more accurately reflect the true costs of providing that service. At this time, box restructuring is constrained based on current fee groups in order to mitigate large fee increases for customers.

Current post office box customers would not pay the new fees until their current box fee period ends. There are no changes to free (Group E) box service. Therefore, customers who currently qualify for free box service may continue to receive it. See DMM R900.19.0.

Post offices will be notified of their new cost group via a special publication that will be distributed before implementation of new rates and fees. Customers will be able to find their new post office box fees via their local post office, the Postal Service web site (www.usps.com), or by calling 1-800-ASK-USPS and providing the 5-digit ZIP Code.

The caller service fee will increase to $375 for all customers at all postal facilities. Caller service fees will no longer be broken out according to post office fee groups. The annual call number reservation fee will decrease from $36 to $30. See R900.5.0.

The Postal Service has deleted a provision from the DMCS that allowed customers with both a post office box and a regular street delivery address served by the same delivery unit to redirect the delivery of all of their mail, regardless of how it was addressed, to the post office box. This redirection of mail often depends on the memory of specific individuals or on an ad hoc handwritten note. The net result easily can be delivery of mail in a fashion contrary to a customer's intent. The Domestic Mail Manual currently does not contain standards related to this provision, although some local post offices redirect mail as a favor to customers. The policy of the Postal Service, as contained in the Domestic Mail Manual, is to deliver mail to the address specified on the mailpiece. Deleting section 921.222 of the DMCS is desirable from the point of view of the customer and the Postal Service. Customers will still be able to have their mail forwarded from one address to another, including a post office box, based on current forwarding procedures. Because no standard currently exists in the Domestic Mail Manual, no changes are necessary to support this DMCS change.

t. Registered Mail (DMM S911)

All registered mail fees will increase. The incremental fee for registered mail per value level will increase from $0.55 to $0.75. The handling charge per $1,000 in value, or fraction thereof, for items valued over $25,000 also will increase from $0.55 to $0.75. There are no classification changes for this service. See DMM R900.20.0.

u. Restricted Delivery (DMM S916)

The restricted delivery fee will increase from $2.75 to $3.20. There are no classification changes for this service. See DMM R900.21.0.

v. Return Receipt (DMM S915)

The regular return receipt fee will increase from $1.25 to $1.50. The return receipt for merchandise fee will increase from $1.40 to $2.35. The fee for a return receipt after mailing will decrease from $7.00 to $3.50. These changes reflect improved cost estimates and the impact of electronic signature capture. See DMM R900.22.0 and 23.0.

There are two classification changes for return receipt service. The first change allows return receipt for merchandise to be combined with unnumbered insurance. The second change extends return receipt for merchandise service to Standard Mail parcels that are subject to the residual shape surcharge (both Regular and Nonprofit subclasses). Return receipt for merchandise will not be available for the Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses.

w. Shipper Paid Forwarding (DMM F010)

The Postal Service is establishing an annual accounting fee of $375 for shipper paid forwarding for customers who choose to pay forwarding charges through a postage due account. This fee is consistent with accounting fees charged for other special services. See DMM R900.24.0.

x. Signature Confirmation (DMM S919)

The Postal Service is establishing a new classification and fee schedule for Signature Confirmation. Signature Confirmation will capture and provide access to all Delivery Confirmation data and an image of the recipient's signature. Signature Confirmation will be available only at the time of mailing for Priority Mail and all subclasses of Package Services. For Priority Mail Signature Confirmation, the fees are $1.25 for electronic option and $1.75 for retail option. For Package Services Signature Confirmation, the fees are $1.25 for electronic option and $1.75 for retail option. See DMM R900.25.0.

y. Special Handling (DMM S930)

There are no fee or classification changes for this service. See DMM R900.26.0.

z. ZIP Code Sortation of Mailing Lists (DMM A910)

Fees for sorting mailing lists by 5-digit ZIP Code for post offices with multiple ZIP Codes will increase from $70.00 to $73.00 per 1,000 addresses. There are no classification changes for this service. See DMM R900.12.0.

12. On-Site Meter Service (DMM P030)

The name of the service will change from “on-site meter settings” to “on-site meter service.” The “single meter” and “unscheduled appointment” categories will be replaced with a new “meter service” category. The “additional meters” category will be replaced with a “meter reset and/or examined” category. These categories will consolidate similar fees and make the service easier to understand and use.

New fees have been established for these realigned categories. The fee for meter service is $31.00. The fee for getting a meter reset and/or examined is $4.00 per meter. The fee for checking a meter in or out of service will decrease from $8.00 to $4.00 per meter. See DMM R900.14.0.

The checking in/out fees will not apply to “secured postage” meters. To qualify as a secured postage meter, a meter must: (1) include a USPS-approved postal security device; (2) print information-based indicia; and (3) be remotely set. Because of the enhanced security that these meters provide, they do not require labor intensive activities during installation or withdrawal. Therefore, these meters do not have significant check-in/out costs.

13. Stamps and Stationery (DMM P021)

a. Stamped Cards

The fee for a single stamped card will increase from $0.01 to $0.02. The fee for double stamped cards will increase from $0.02 to $0.04, and the fee for a sheet of 40 stamped cards will increase from $0.40 to $0.80. These fees are in addition to the postage that is preprinted on the cards and covers the

cost of printing and manufacturing stamped cards. See DMM R000.3.0.

b. Stamped Envelopes

The fees for all categories of stamped envelopes will increase. This fee is paid in addition to the postage preprinted on the envelopes. The following classification changes will apply to stamped envelopes:

(1) Merge the printed household 6

3/4

inch and 10 inch categories into a single category called printed household (basic).

(2) Eliminate the banded categories for 6

3/4

inch and 10 inch envelopes.

(3) Expand the hologram category to include all envelopes that have a patched-in stamp and rename that category “special” stamped envelopes.

See DMM R000.1.0 and R000.2.0.

C. Summary of Comments From the August 29, 2000, Proposed Rule (65 FR 52479)

The Postal Service received nine pieces of correspondence offering comments on the August 29, 2000, proposed rule. Commenters included two major mailer associations, six publishers, printers and/or mailers, and one individual.

The specific points raised in the comments are presented below, organized by general comments and then by class of mail and special service.

1. General Comments

One commenter commended the Postal Service on publishing a clear, concise, and orderly proposed rule.

One commenter supported the change of the minimum dimensions for a machinable parcel.

One commenter indicated they are pleased with the name change from Standard Mail (B) to Package Services.

One commenter indicated that their association had previously warned the Postal Service that eliminating the advertising requirement for Bound Printed matter would change the nature of that subclass and result in the entry of higher cost materials that would inevitably result in higher rates. This commenter further stated that although all mailers are concerned about rate increases the effect is much greater for catalog mailers than book mailers because books generally cost a substantial amount—$20.00 and more—and that book publishers can more easily absorb additional mailing costs. This commenter indicated it may be feasible to undo the damage by restoring Bound Printed Matter to its previous status by requiring it to contain advertising. This comment is outside the scope of this rulemaking and will not be addressed.

One commenter indicated that their association recommends that the Postal Service give Standard and Package Services mailers a grace period to implement the new tray, sack, and pallet labels for those classes. The Postal Service will work with individual mailers concerning any exceptions needed concerning the requirements of this final rule.

Two commenters indicated that the rate incentive for drop shipping Bound Printed Matter to a destination delivery unit to claim the DDU rates was not sufficient to compensate mailers for the additional costs of preparing and transporting the mail. These comments are outside the scope of this rulemaking process. The rates, rate structure, and basic standards for rates in Docket No. R2000-1 were subject to litigation before the Postal Rate Commission and cannot be revised unilaterally by the Postal Service in a rulemaking process.

2. Express Mail

No comments were received regarding Express Mail.

3. Priority Mail

No comments were received regarding Priority Mail.

4. First-Class Mail

No comments were received regarding First-Class Mail.

5. Periodicals

No comments were received regarding Periodicals.

6. Standard Mail (Formerly Standard Mail (A))

One commenter supported the change that they believed allowed Delivery Confirmation and ancillary service endorsements to be used with Standard Mail pieces subject to the residual shape surcharge that are mailed using Priority Mail Drop Shipment procedures. The Postal Service did not specifically propose use of electronic Delivery Confirmation with Standard Mail parcels entered under Priority Mail Drop Shipment procedures, but has added clarifying language to the final rule DMM language to provide for such use where appropriate.

7. Package Services—Combined Mailings

One commenter supported the change that allows the combining of any subclass into common containers to qualify for applicable DBMC, DSCF, and DDU rates. The Postal Service appreciates this comment but would like to point out that the provisions for Combined Package Services mailings in DMM E753 apply only to matter sorted to 5-digit containers for the purposes of meeting eligibility requirements for DSCF and DDU rates. There are no provisions for Combined Package Services mailings for DBMC rates.

One commenter requested that overflow sacks be permitted in the preparation standards for combined package services mailings in DMM E753 that allows parcels from all Package Services subclasses to be combined in 5-digit sacks to qualify for Parcel Post and Bound Printed Matter DSCF and DDU rates. The proposed rule indicated that each 5-digit sack must contain at least 10 pieces of any combination of Package Services mail. This commenter indicated that, if an overflow sack is not permitted, the number of pieces qualifying for this preparation option would always need to be perfectly divisible by 10 and that this is not a practical scenario for mailers. The Postal Service agrees that the standards for combined package services mailings should include the preparation of overflow sacks and have incorporated the preparation of overflow sacks into the standards in E753. Preparation of overflow sacks will be available both for sacked mailings and for mailings prepared on pallets.

This commenter also believed that irregular parcels were required to be prepared in packages under the Combined Package Services option in DMM E753. This commenter also questioned why irregular parcels were required to be packaged in 5-digit sacks as he believes there appears to be no operational reason for preparing irregular parcel in packages when they are in 5-digit containers. The Postal Service has clarified that packaging is not required for preparation of Combined Package Services mailings under DMM M753. In addition, the Postal Service has added an option to DMM M722 that will allow Presorted Bound Printed Matter irregular parcels prepared in 5-digit sacks to be prepared loose in sacks without packaging if the minimum package size requirement is met and the pieces are individually wrapped or enveloped.

This commenter also pointed out an omission in the wording of proposed DMM E753.2.1a(3). This section of the DMM has been revised in the final rule.

8. Parcel Post (Including Parcel Select)

Two commenters expressed concern that there would be inconsistencies in acceptance practices from location to location because of the proposed new nonmachinable surcharges for intra-

BMC rate and DBMC rate parcels. These commenters stated that the inconsistencies could be caused by differences in how parcels will be measured at different acceptance points around the country. The commenters suggested training for acceptance personnel and a transition period for application and compliance with new standards. Postal Service acceptance personnel will receive training on the new provisions in this final rule including the new nonmachinable surcharges for intra-BMC rate and DBMC rate nonmachinable parcels. Postal employees will use the procedures currently in effect for determining if an inter-BMC parcel is nonmachinable when determining whether the nonmachinable surcharges apply to intra-BMC rate and DBMC rate parcels. The Postal Service will make every effort to ensure a smooth transition into new procedures. However, no transition or grace period for application of the nonmachinable surcharges can be granted.

One commenter indicated that use of the term “Parcel Post” in proposed DMM E711.2.2g pertaining to the barcoded discount was incorrect and that this term should be changed to “Parcel Select.” The term Parcel Post used in the DMM encompasses all rate categories of Parcel Post including the destination entry rates, which have been named Parcel Select. DMM E E711.2.2f in this final rule now contains the provisions for the barcoded rate. This section has been amended to show that the barcoded discount and its applicable 50-piece minimum mailing requirement applies to all Parcel Post rate categories, including Parcel Select.

One commenter pointed out that Exhibit E711.2.2, BMC/ASF Service Areas, that is used to determine eligibility for intra-BMC rates had not been updated to move ZIP Code 893 from the Salt Lake City ASF to the Los Angeles BMC. This change was published in Postal Bulletin 22038, November 30, 2000.

9. Bound Printed Matter

One commenter expressed support for the change to ancillary service marking requirements for Bound Printed Matter.

Two commenters stated they were opposed to the proposed requirement to restrict DDU rates to carrier route mail. One of these commenters, a mailer association, indicated that the proposed rule requirement that Bound Printed Matter pieces would be eligible for destination delivery unit (DDU) rates only if prepared as part of a Carrier Route Bound Printed Matter mailing appears to be a “classification” rather than a regulatory change. This commenter indicated there was nothing in the Postal Service's proposal to the PRC that indicated the DDU discount would be limited to carrier route mail. The commenter indicated its belief that the Postal Service overstepped its regulatory authority by adding such a limit to the DDU rate. Another commenter indicated that this requirement does not make sense and would add to costs for both the mailer and the Postal Service.

The Postal Service submits that the proposed rule did not prohibit all Presorted Bound Printed Matter from obtaining DDU rates. The proposed restriction applied only to flat-size pieces at Presorted rates. This restriction contained in the proposed rule is consistent with the Postal Service's treatment of flat-size mail of other classes for eligibility for DDU rates. Currently, Standard Mail and Periodicals must be sorted to carrier route to obtain DDU rates. Furthermore, the Drop Shipment file also directs mailers to the delivery unit where the carrier is located that will deliver the flats. This assumes that the mailer must know the carrier route for flat-size mailpieces. This restriction was proposed in order to give the USPS the ability to process Presorted rate flat-size mail to carrier routes on Flat Sorting Machines at the plant, rather than manually sorting it to carrier routes at the delivery unit.

However, the Postal Service has reconsidered this requirement. The final rule will provide that flat-size pieces of Presorted Bound Printed Matter may qualify for the DDU rates provided each piece weighs over one pound, the pieces are sorted in 5-digit sacks, or on optional 5-digit scheme or required 5-digit pallets, or prepared as bedloaded 5-digit packages. 5-digit containers or in bedloaded 5-digit packages, and are entered at the appropriate destination delivery unit. The Drop Shipment Product must be used to determine the correct destination entry facility for the 5-digit sorted flat-size Presorted Bound Printed Matter. If the Drop Shipment Product lists multiple facilities for a single 5-digit ZIP Code, the mailer must inquire about the correct drop site when contacting the DDU to schedule an appointment. Mail weighing over one pound is less likely to be worked on AFSM 100s and is not processed on FSM 881s. Heavier mail that is directed to an FSM 1000 is less likely to be processed to carrier routes on the FSM at the current time, although that may change after full deployment of AFSM 100s. Therefore, allowing DDU rates currently makes sense for these heavier flats. However, the Postal Service will reassess this decision when it receives the results of the AFSM 100 machinability tests.

One commenter opposed the elimination of the marking “Presorted Standard” on Presorted Bound Printed Matter. This mailer has a customer that currently uses the “Presorted Standard” marking in the permit imprint indicia of pieces mailed at both Standard Mail (A) and Standard Mail (B) rates. For the portion of the mailing that is split off into a Standard Mail (B) mailing, the mailer ink-jets the “Bound Printed Matter” marking on the mailpieces directly to the left or below the permit imprint indicia. The Postal Service understands the concerns of the customer in question. However, the Postal Service In-Office Costing System relies heavily on such markings to appropriately attribute costs to classes and subclasses of mail. Having markings indicating two different classes of mail on the same mailpiece is potentially confusing to data collectors and could result in inaccuracies in data collection. Instructions as to which marking overrides the other would be possible but adds a level of complexity to an already complex system. Furthermore, such dual markings are also confusing to delivery unit employees and Computerized Forwarding System (CFS) employees who rely on such markings to correctly handle and process undeliverable-as-addressed mail. Accordingly, the Postal Service is retaining the prohibition against using the “Presorted Standard” marking on Presorted Bound Printed Matter. Mailers are reminded that they will have until January 1, 2002, to discontinue use of the “Presorted Standard” (or “PRSRT STD”) marking.

One commenter disagreed that Bound Printed Matter weighing less than 1.5 pounds should be charged the rate equal to a piece weighing 1.5 pounds. This commenter recommended a piece-pound calculation be used so that a 1-pound item would be the minimum. The Postal Service will not adopt this suggestion. The instructions in the proposed rule for calculating rates do not differ from the current requirements for calculating Bound Printed Matter rates in DMM P013.5.0. It should be noted that the 1.5-pound weight category is contained in the single-piece rate Bound Printed Matter rate chart. The PRC recommended adding rate cells for pieces weighing not more than one pound to this rate schedule. The 1-pound rates that the PRC recommended are the same as the rates for the 1.5-pound weight cells. Furthermore, the column heading for the weights in rate

schedule 522A, Domestic Mail Classification Schedule and in DMM R700 is “Weight not Exceeding (pounds).” This means that all mail that does not exceed the first weight category on the schedule pays rates shown for the first weight category. A piece and pound calculation is not performed for single-piece Bound Printed Matter.

One commenter supported the change to the handling of undeliverable-as-addressed Bound Printed Matter pieces that are not mailed with a special service or an ancillary service endorsement that will make it the same as for Standard Mail. This change provides that undeliverable-as-addressed (UAA) Bound Printed Matter pieces mailed with no special service (

e.g.,

Delivery Confirmation, insured), and with no ancillary service endorsement, will be disposed of by the USPS as waste at the delivery unit. Mailers of Bound Printed Matter who want to have their UAA pieces forwarded and returned must choose the appropriate ancillary service endorsement for the service they desire. Handling of mail for each ancillary service endorsement is in DMM F010. The commenter indicated that this change will allow catalog mailers that generally mail as Standard Mail to mail heavier catalogs, over one pound, without applying the ancillary service endorsement. This commenter indicated the previous requirement was confusing and sometimes costly for such mailers, who had no option for disposing of pieces.

One commenter suggested that packaging should not be required for Presorted Bound Printed Matter irregular parcels prepared in 5-digit sacks. The Postal Service has added to the final mail preparation standard the option of forgoing packaging provided the pieces in the sack meet the minimum packaging volume and the pieces are individually wrapped or enveloped.

Three commenters expressed concern regarding the proposed elimination of the bedloaded bundle preparation option for Bound Printed Matter. One of these commenters suggested that the Postal Service allow customers to continue bedloading on an exception basis or “grandfathering” of existing products because a transition to product palletization will require major changes in some mailer facilities. Another commenter also indicated they had a client that currently bedloads bundles for which the required pallet preparation would be costly, slow down their production process, and require at least until March or April, 2002 to install. That commenter requested that the Postal Service waive the requirements for this customer. The third commenter also indicated that requiring palletization for DSCF or DBMC rates would incur large costs to mailers and that they were not convinced the benefits to the Postal Service would be commensurate. This commenter requested that the Postal Service design a bedloaded entry option for DSCF or DBMC entry that would be subject to strict scheduling, advance notice and other requirements that would permit maximum Postal Service efficiency.

The mail preparation standards that were set forth in the proposed rule are designed to lower the Postal Service costs of handling Bound Printed Matter. Generally, bedloaded packages or bundles of Bound Printed matter are not machinable on BMC parcel sorters and are not cost-efficient for the Postal Service to handle and process. The requirement to sack or palletize mail is designed to enable more mail to be processed on sack sorters and to enable pallets of mail to be cross-docked at BMCs and processing plants, thereby reducing the number of individual piece handlings of Bound Printed Matter. The Postal Service believes that permitting bedloaded packages only when the mail is entered by the mailer at the destination delivery unit for the DDU rates is critical to lowering the overall costs of processing Bound Printed Matter. Accordingly, the sortation requirements in the final rule retain the restriction on bedloaded packages to mail prepared for the DDU rates. The Postal Service will work with mailers on a case-by-case basis to develop interim solutions for those who need time to convert their operations to pallet preparation.

One commenter indicated that lowering the maximum package weight for Bound Printed Matter on pallets from 40 pounds to 20 pounds will create production throughput problems because they will now be able to place only four catalogs in each package. This commenter indicated that this will require slowing their production lines to allow the production of the additional packages.

The Postal Service proposed the 20-pound maximum package size to allow packages to be handled on Small Parcel and Bundle Sorters (SPBSs). As indicated above, most packages of Bound Printed Matter are not prepared to withstand handling on BMC parcel sorting equipment. If packages exceed 20 pounds they cannot be processed on SPBSs. Allowing heavier packages would result in the Postal Service having to process such packages manually at a greater cost than mechanized processing. These costs are eventually reflected in the rates. Accordingly, the Postal Service is retaining the 20-pound package limit in the final rule, except that the following packages have a maximum weight limit of 40 pounds: (1) Carrier route packages in sacked mailings, (2) 5-digit packages in 5-digit sacks, (3) carrier route packages of flats on 5-digit scheme carrier routes or 5-digit carrier routes pallets, (4) carrier route packages of irregular parcels on 5-digit pallets, (5) 5-digit packages of flats on 5-digit scheme pallets, (6) 5-digit packages of flats or irregular parcels on 5-digit pallets, and (7) carrier route bedloaded packages or 5-digit bedloaded packages prepared for the DDU rate.

10. Special Services

The Postal Service received two comments related to special services. One commenter supported the proposal to allow mailers to add special services to Standard Mail (formerly Standard Mail (A)) pieces. Another commenter supported the proposal to add a new “high-volume” category for Qualified Business Reply Mail.

D. Summary by DMM Module of All R2000-1 Revisions

The following are changes organized by DMM module. They are intended as an overview only and should not be viewed by readers as defining every revision.

Global Name Changes

Throughout the DMM sections included in this document, the following name changes have been made:

1. “Special Standard Mail” has been changed to “Media Mail.”

2. “Standard Mail (A)” has been changed to “Standard Mail.”

3. “Standard Mail (B)” has been changed to “Package Services.” Package Services includes all of the Standard Mail (B) subclasses: Parcel Post (including Parcel Select), Bound Printed Matter, Media Mail, and Library Mail.

In addition, the current DMM 600 series, which contains combined rules for Standard Mail (A) and Standard Mail (B), has been split into a 600 series for Standard Mail and a 700 series for Package Services. Within these new series, individual units and sections have been split up and reorganized for clarity. Current DMM P700, which contains standards for special postage payment systems, is renumbered as P900. Throughout the language in the DMM, references to “Standard Mail” have been retained as “Standard Mail”

or changed to “Package Services” or “Standard Mail and Package Services,” as appropriate.

A Addressing

A010 is amended to change DMM references to reflect new DMM module numbering. A060.1.4 is amended to incorporate new requirements for preparation of Bound Printed Matter mailings with DALs because of the elimination of local zone rates. Also, it is clarified that mailings made with DALs may not contain any special services or an ancillary service endorsement. A new A060.1.7 is added to exclude DALs on special services mail. A910.2.2 is amended to show that the minimum fee ($7.50) for correcting a mailing list applies to lists with fewer than 30 names or addresses.

C Characteristics and Content

C010 and C020 are revised to reflect new DMM module numbering. C050 is revised to decrease the machinable parcel minimum piece weight from 8 ounces to 6 ounces, to clarify that packaging requirements for soft goods may be found in C010, and to clarify that each destinating BMC manager may authorize the entry of parcels as machinable rather than as irregular if they are tested for machinability and are delivered within the service area of the authorizing facility. C200.5.0 is added to specify size and weight limitations for Periodicals. C600 is revised to delete sections 1.3 and 2.0, which pertain to Package Services. Those sections have been moved to new C700. C700 is added to include characteristics and content standards for Package Services (former C600.1.3 and 2.0 are included in this new section). C700.2.0 is amended to provide for the addition of new nonmachinable surcharges for intra-BMC and Parcel Select DBMC parcels, and to include the criteria for nonmachinability from E630.1.4. C810.2.3 is added to include instructions for determining the length and height for automation letters. C810.2.4 (former C810.2.3) is amended to provide for the revised maximum weight of 3.3 ounces for heavy letters. C840.3.0 is revised to include new requirements under which mailers may submit flat-size automation rate mailings in which pieces contain two POSTNET barcodes.

C850 is amended to add Standard Mail machinable parcels as items eligible for barcoded discounts. C850.1.4 is amended to include information about barcodes for Signature Confirmation service.

D Deposit, Collection, and Delivery

D210 is revised to provide for DDU rate eligibility for Periodicals mail entered under exceptional dispatch authorizations. The change will limit DDU rates under exceptional dispatch to mail destined to zones 1 and 2 and will provide a restriction on eligibility to publications with circulation of 25,000 and under.

D600 is revised to remove information pertaining to Package Services, to add information about deposit of mail under plant-verified drop shipment procedures, and to clarify language. D700 is added to include deposit information for Package Services (formerly contained in D600).

D910.1.5 is amended to clarify that post office box customers must pay the correct fee for the box service they receive. D910.1.7 is added to clarify that post office box service is provided in 6-month increments. D910.1.8 (formerly D910.1.7) is amended to add information about the new key duplication fee and the new lock resetting fee. D910.3.1 is amended for clarity. D910.3.7 is amended to clarify that a post office box may not be used when the primary purpose is to have the Postal Service redirect or transfer mail to another address. D910.4.1 is amended to change the basis of post office box fees. D910.4.3 is deleted to remove references to fee groups; subsequent sections are renumbered. Renumbered D910.4.3 is amended to specify the conditions under which post office box fees can change. D910.4.4 is amended to clarify when post office box fees must be paid. D910.4.7 is amended to show that the exception for payment periods is applicable to all offices with fewer than 500 post office boxes, regardless of fee group. D910.5.1 is amended to explain the new system for grouping ZIP Codes into fee groups. D910.5.2 and 5.3 are amended to clarify the conditions under which a customer could qualify for free (Group E) post office box service. Exhibits D910.5.3a and 5.3b are deleted because of the change to a new fee system. D910.6.1 is amended to clarify how refunds for post office box fees are calculated. D910.7.0 is revised to include the new fee for replacement or duplicate keys and the new fee for replacing post office box locks.

D920.1.4 is amended to move information about reserved caller numbers into new D920.1.5. D920.3.4 is amended to clarify that caller service may not be used when the primary purpose is to have the Postal Service redirect or transfer mail to another address. D920.4.0 is amended and Exhibit 4.1 is deleted to remove references to caller service fee groups. D920.4.2 is amended to clarify that reserved number fees are not refundable. D920.4.3 is amended to remove references to deleted sections. D920.4.5 is amended to clarify the payment periods for caller service. D920.4.8 is amended to show that the exception for payment periods is applicable to all offices with fewer than 500 post office boxes. D920.5.1 is amended to clarify how refunds for caller service fees are calculated. D920.5.3 is added to show that the reserve number fee is not refundable.

E Eligibility

Throughout the E module, references to “Regular” are changed to “Outside-County,” as appropriate. E010.1.4 is amended to change references from “C600” to “C700.” E010.1.6 is amended to add clarity to the first sentence. The first sentence of E020.1.4 is added to clarify that Express Mail cannot be sent through the Department of State. E020.2.3 is amended to show that Signature Confirmation is not available for mail sent through the Department of State. E040.4.1 is amended to change references from “C600” to “C700.” E060 5.3 is amended to reflect the current requirement for a “Parcel Post” rate marking for single-piece rate Parcel Post. E060.10.1 is amended to clarify standards for penalty reply mail. E060.11.1 is amended to add QBRM as an option for penalty business reply mail and to clarify when the annual accounting fee is paid. E060.12.1 is amended by adding a reference to S923. A new E060.12.2 is added to clarify how penalty merchandise return service (MRS) parcels are charged postage and fees. A new E060.12.3 is added to require MRS permit holders to pay an annual accounting fee. E060.12.7c is added to indicate where the recommended rate marking should appear on the MRS label. E060.12.8 is amended to clarify standards for permit holders who choose to add insurance to MRS parcels. E060.12.9 is renumbered as E060.12.10, and new E060.12.9 is added to allow senders to add insurance to MRS parcels at their own discretion and expense. E070.4.2 is amended to change the reference from “E600” to “E700.” E070.6.2 is revised to specify that if Presorted rates are claimed for both Media Mail and Bound Printed Matter, the mail must be prepared under the standards for Bound Printed Matter in M722.

E120.2.4 is revised to add provisions for a new minimum Priority Mail rate for pieces weighing 1 pound or less, and to add information on rates applicable to keys and identification devices.

E130.2.2 is revised to clarify the fee for keys and identification devices. E130.2.3 is relocated to M110.1.0. E140.2.2 and E140.2.3 is revised to add separate 5-digit (optional) and 3-digit (required) rate eligibility requirements for automation flats. E150.2.0 is amended by removing the last sentence. E150.3.3 is amended by adding a quarterly QBRM fee under E150.3.2c.

E211.13.1 is amended by revising 13.1d(3) to reference the preferred rate discount. E211.13.2 is amended to clarify that no fee is charged if reentry is only to change eligibility to preferred rates or the preferred rate discount. E211.14.0 has been revised and renumbered as E217.1.0. E212.2.4 has been revised and renumbered as E217.4.0. E215.2.3 is amended by adding references to Preferred rate discount and clarifying qualification categories. New E215.2.4 is added for Publications of Institutions and Societies. E215.2.7 is amended by replacing the second sentence and deleting the third sentence. A new E217 is created that describes and clarifies basic rate eligibility standards for Periodicals including the new preferred rate discount for Nonprofit and Classroom publications that provides a 5% discount on total Outside-County postage, excluding the postage for advertising pounds. E250 is revised to incorporate changes that provide for DDU rates for Periodicals mail entered under exceptional dispatch authorizations. E270 is amended by removing 1.0 and 6.0 and renumbering 2.0 through 9.0 as 1.0 through 7.0 and replacing in 1.0 the word “RATES” with the word “ELIGIBILITY.” Removing the word “rates” and replacing the reference 3.0 and 4.0 as 2.0 and 3.0 amends renumbered E270.1.1. Removing the word “regular” amends renumbered E270.1.3. E270.1.4 is removed. Replacing the word “RATES” with the word “ELIGIBILITY” amends renumbered E270.2.0 and 3.0. Sections E270.2.1 and E270.2.2 are amended by replacing the reference “3.3 through 3.10” with “2.3 through 2.10.” Removing the word “regular” in the last sentence amends renumbered E270.4.0. E270.5.1 is amended by adding a new first sentence clarifying that the Preferred rate discount is available only after USPS authorization. E270.5.5, Rate Anomaly, renumbered as E270.4.5 is removed. In renumbered E270.5.0, 5.1 is removed and E270 5.2 and 5.3 are renumbered as 5.1 and 5.2. Renumbered E270.5.1 is amended by adding a new first sentence describing the Preferred rate discount and revising the second sentence applicable to authorization procedures for Nonprofit and Classroom publications. Adding reference to preferred rate and replacing “Regular Periodicals” with “Outside-County” amends renumbered E270.6.1 and E270.6.2. Renumbered E270.7.4 is amended by replacing “Regular” with “Outside-County,” and the reference “9.5” with “7.5.”

E611 is amended to provide basic eligibility requirements for only Standard Mail and is renumbered as E610. E610.1.0 is amended to show that Standard Mail no longer includes matter previously referred to as Standard Mail (B) or fourth-class mail, and adds the weight limit from former E612.1.0. E610.4.6 is removed because this section is no longer needed since all Package Services mail may now weigh less than 16 ounces. E610.5.0 (formerly E612.4.0) is amended for clarity and incorporates a revised maximum limit for minimum per piece rates. E610.5.4 is added to provide for the barcoded rate for machinable parcels. E610.5.5 is revised to provide for separate residual shape surcharges for Presorted rates and for Enhanced Carrier Route rates. E612.4.9 is renumbered as E610.8.0, is amended for clarity to provide for use of detached address labels. E610.5.6 (previously E612.4.4) is amended to provide for the residual shape surcharge and to include the first sentence of previously numbered E612.4.5. Former E612.4.5 is deleted. Renumbered E610.5.6 (previously E612.4.4) is amended to remove the reference to 4.6, to delete “bulk” and to change “pound rates” to “piece/pound rate.” E612 is removed and, except as noted above, its information added to new E610. E620 is amended to remove information pertaining to Enhanced Carrier Route Mail, and to add new 4.0, which contains standards for the machinable parcel barcoded discount. E630 is revised to contain the eligibility criteria for Enhanced Carrier Route Standard Mail. (Information in former E630 has been moved to new E700.) E640 is amended to replace “Standard Mail (A)” with “Standard Mail” and to replace “E611 and E612” with “E610.” E650 contains the contents of previously numbered E651 and has been amended to change references from “E611 and E612” to “E610.” E670 is amended to change “P750” to “P950”.

A new E700 is created for Package Services as part of the restructuring to establish separate modules for Standard Mail and Package Services mail. A new description has been added above E710 to match the description in the new E610 section. The appropriate provisions of former E611 and E613 are renumbered as the basic standards in E710. Former E613.1.0 is renumbered as E710.1.2 and amended to reflect that minimum weights for subclasses of Package Services mail have been eliminated. Provisions in former E630.1.0 are renumbered as E711 (Parcel Post). E711.2.3 is revised to clarify that certain parcels mailed at a balloon rate may be subject to a nonmachinable surcharge. Provisions in former E630.2.0 are renumbered as E712 (Bound Printed Matter). Provisions in former E630.3.0 and E630.4.0 (Special Standard Mail) are renumbered as E713 (Media Mail). The definition of a full sack is revised in E713 to eliminate the 1,000 cubic inch volume sacking criteria. Provisions in former E630.5.0 and E630.6.0 are renumbered as E714 (Library Mail). The definition of a full sack is revised in E714 to eliminate the 1,000 cubic inch volume sacking criteria. Provisions in former E630.7.0 are renumbered as E715. Former E630.1.4, that contains the description of items subject to Parcel Post nonmachinable surcharges, is renumbered and moved to C700.2.0. E652 is renumbered as E750 for destination entry Package Services mail. E751.4.4 and 4.5 are revised to clarify that an exception to the appointment requirement exists for destination entry shipments containing 100 percent Periodicals or shipments of perishables. E752 is created that contains the eligibility requirements for Bound Printed Matter destination entry discounts. An annual destination entry fee for mail entered at destination entry rates is added. E752 also explains Destination Entry Mail Preparation when mailing under plant-verified drop shipment (PVDS). E753 has been added to provide for the combining of Package Services parcels in 5-digit sacks (E753.2.0) and on 5-digit pallets (E753.3.0) for destination entry at the SCF and DDU levels if also presented with an approved manifest. Sacks containing at least 10 combined pieces or a combined weight of 20 pounds and pallets having at least 50 combined pieces and a combined weight of 250 pounds of mail, or 36 inches of mail, will be allowed. BPM parcels claimed at a Carrier Route rate may not be combined with the other Package Services parcels under E753.

F Forwarding and Related Services

F010.4.5 is amended to add that Standard Mail with insurance is forwarded and returned and to show that registered items are given registered service while they are being forwarded or returned. F010.4.6 is added to make the standards for undeliverable metered mail in this module consistent with standards elsewhere in the DMM.

F010.5.3g is added and the chart in F010.5.3 is amended to prohibit the use of the “Change Service Requested” endorsement on Standard Mail with special services. F010.5.4c is added and the chart F010.5.4 is amended to allow BPM with no ancillary service endorsement and no special service to be disposed of by the Postal Service. F010.7.4 is amended to specify that combination parcels are returned at Parcel Post inter-BMC/ASF rates.

F020.3.7 is amended to show that pieces with Delivery Confirmation and Signature Confirmation are forwarded without payment of additional special service fees. F030.2.5 is amended to give mailers participating in Shipper Paid Forwarding the option of paying forwarding charges through a postage due account. If mailers choose this option, then they must pay the annual accounting fee. F030.4.2 is amended to include information about forwarding and return of Standard Mail.

G General Information

G091.3.0 is amended to reflect the increase in the fee for certification of a system as functionally equivalent to Mailing Online from $100 to $125.

L Labeling Lists

L001 is amended to change the introductory paragraph to show that this labeling list may be used with Bound Printed Matter flats. L002 is amended to add “and per piece” to the rate description for Periodicals SCF rates. L004 is amended to show that it may be used with Bound Printed Matter. L601 is amended to show that packages of Bound Printed Matter irregular parcels on pallets may use this list and to show the instructions for labeling mixed BMC containers that were inadvertently omitted from the

Federal Register

published August 8, 2000 (65 FR 48385). L602 is amended to remove the term “bundles,” and to provide for use of this list by Bound Printed Matter machinable parcels when DBMC rates are claimed.

M Mail Preparation and Sortation

M011.1.3 is amended to add preparation instructions for less-than-full and overflow flat trays and to revise the preparation instructions for 5-digit/scheme carrier routes sort and 5-digit/scheme sort to provide for use of these levels of sortation with BPM flats. M012.3.1 is amended to eliminate the use of “Library Rate” marking effective January 1, 2002 (after which only “Library Mail” may be used as the marking), and to change the marking “Special Standard” to “Media Mail” (“Special Standard” or “SPEC STD” may be used only until January 1, 2002). M012.3.2 is amended to add the marking “Parcel Select.” M012.3.3 is amended to eliminate use of the marking “Presorted Standard” instead of “Presorted” with Presorted BPM effective January 1, 2002 (after which only “Presorted” and “Bound Printed Matter” may be used), and to add use of the abbreviation “BPM” as an optional marking for “Bound Printed Matter.” M013.1.1 is updated to include a carrier route package optional endorsement line information for Carrier Route BPM. M013.2.5 is amended for clarity, to change the labeling list used for ADC sortation of BPM irregular parcels from L603 to L004, and to change the labeling list used for mixed ADC sortation from L604 to L004. M020.1.4 is amended to delete references to bundles. Current M020.1.5 and 1.6 are renumbered 1.6 and 1.7 and a new M020.1.5 is added to describe new physical preparation of BPM packages. M020.2.2 is amended to show that First-Class Mail automation flats prepared under the new tray-based preparation rules are not prepared in packages and to show that the exception in renumbered M020.1.7 also applies to First-Class Mail flats in trays. M020.3.0 is amended to show that the requirement for facing slips used to label carrier route packages applies to all classes of mail. M031.4.7 is amended to specify that the words “CARRIER ROUTES” must appear on 5-digit pallets of BPM only when the pallet consists entirely of irregular parcels eligible for the carrier route rate and that the words “CARRIER ROUTES” must appear after the “5D” pallet level description. M031.4.12 is amended to delete the term “bundle.” M031.5.0 is amended to add new abbreviations for First-Class Mail and Package Services mail. Exhibit M032.1.3a is amended to reflect changes in the content line and CIN numbers of Package Services sack labels. M033.1.2 is amended to clarify that lids on First-Class flat trays must be placed on the trays green side up. M033 is amended to provide for less-than-full and overflow trays for First-Class Mail automation rate mailings prepared under the new tray-based option.

M041.5.6 is amended to require for flat-size BPM that Presorted rate mail must be placed on separate 5-digit pallets (5-digit scheme and 5-digit pallets) from Carrier Route rate mail (5-digit carrier routes or 5-digit scheme carrier routes pallets) and to remove references to palletized bundles. M045.2.0 is revised to clarify requirements and to revise the package minimums, maximums, and physical packaging requirements for BPM. Current M045.3.0, which provides for optional preparation of bundles on pallets for Periodicals and Standard Mail, is deleted. M045.4.0 (as set forth in the final rules published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.3.0. M045.3.0 is amended to provide for separate pallet preparation requirements for BPM flats in M045.3.3 and for irregular parcels in M045.3.4, to renumber the remainder of that section, and to revise the class abbreviation on the contents lines for Package Services mail from “STD” or “STD B” to “PSVC.” M045.3.5 (M045.4.4 as set forth in the final rule published in 65 FR 50054 (August 16, 2000)) is revised to provide for DBMC rates for Bound Printed Matter and to revise line 2 pallet labels to show “STD” instead of “STD A” and to show “PSVC” instead of “STD B.” M045.3.6 (M045.4.5 as set forth in the final rule published in 65 FR 50054 (August 16, 2000)) is revised to change the line 2 pallet labels from “STD” or “STD B” to “PSVC.” M045.5.0 through M045.15.0 (as set forth in the final rule published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.4.0 through M045.14.0. Renumbered M045.6.4 and M045.9.2 are amended by changing the reference “M630” to “M710 or M720.” Renumbered M045.10.0 and 11.0 are amended by changing “STD” or “STD B” to “PSVC.” Renumbered M045.12.1 is amended to change “M630” to “M710,” to change the pallet label contents lines class abbreviation from “STD B” to “PSVC,” and to add “PARCELS” after the class abbreviation. Renumbered M045.12.2 is amended to change “M630” to “M710,” to change the pallet label contents lines class abbreviation from “STD B” to “PSVC” and to add “PARCELS” after the class abbreviation. M045.12.3 is amended to change “Exhibits E652.7.0 and E652.8.0” to “Exhibits E751.7.0 and E751.8.0.” M045.12.4 is amended to change “E652.6.0” to “E751.6.0.” M045.13.0 is amended to change “M630” to “M710” and to change the class abbreviation on the contents line of the pallet label from “STD B” to “PSVC.” M045.14.0 is amended to change the pallet label contents lines class abbreviation from “STD B” to “PSVC,” and to add “PARCELS” after the class abbreviation. M072.2.4 is amended by changing “P710, P720, or P730” to “P910, P920, or P930,” and by changing “E652” to “E751.” M073.2.3 is amended to change “P710” to “P910.”

M110 is added to show the preparation requirements for single-piece First-Class Mail formerly located in E130.2.3.

M610.6.0, which provided for preparation of Standard Mail bedloaded bundles, is deleted. M620.1.1a is amended by changing “E620” to “E630.” M630.1.0, pertaining to Parcel Post, is renumbered in new M710.

M710.1.1 is added to describe general requirements for Parcel Post. M710.1.3 (formerly M630.1.2) is revised to show that DSCF and DDU rate mail need not be separated by zone at the time of acceptance and to change “P710, P720, or P730” to “P910, P920, or P930.” M710.1.4 (formerly M630.8.0) is added to contain standard for commingled zones. M710.1.5 contains the documentation information formerly in M630.1.3 and is amended to clarify the standards and to change “P710, P720, or P730” to “P910, P920, or P930.” M710.2.1 contains standards, formerly in M630.1.4, that are amended by changing the reference “1.5” to “2.2,” by changing “Exhibit E652.6.0” to “Exhibit E751.6.0,” and by changing the reference “Exhibit E652.7.0 and Exhibit E652.8.0” to “Exhibit E751.7.0 and Exhibit E751.8.0.” M710.2.2 (formerly M630.1.5) contains standards that are amended to replace “STD B 5D” on the contents line of DSCF 5-digit sacks with “PSVC PARCELS 5D.” M710.4.0 (formerly M630.6.0) is added to contain provisions for preparation of machinable parcels and is amended to show that this preparation is optional for Parcel Post. M720 (formerly M630.2.0 and 3.0) is added to contain standards for BPM. M721 contains the preparation standards for single-piece rate BPM. M722 contains the preparation standards for Presorted BPM. M722.2.0 contains new packaging and sacking requirements for Presorted BPM flats, including new line 2 sack labeling requirements that change the abbreviation “STD B” to “PSVC.” M722.3.0 contains new packaging and sacking requirements for Presorted BPM irregular parcels weighing less than 10 pounds, including a requirement to use L004 instead of L603 for preparation of ADC sacks, to use L004 instead of L604 for mixed ADC sacks, and new line 2 sack labeling requirements that change the abbreviation “STD B” to “PSVC.” M722.3.6 contains a provision to allow preparation of bedloaded 5-digit packages of Presorted BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M722.4.0 contains preparation requirements for Presorted BPM irregular parcels weighing 10 or more pounds. M722.4.1 prohibits packaging of such pieces and requires that each individual piece must be enclosed in an envelope, full-length sleeve, full-length wrapper, or polywrap before being placed in sacks. M722.4.2 through M722.4.4 contains sacking requirements for Presorted BPM irregular parcels weighing 10 or more pounds including a requirement to use L004 instead of L603 for preparation of ADC sacks, to use L004 instead of L604 for mixed ADC sacks, and new sack labeling requirements that change the abbreviation “STD B” to “PSVC.” M722.4.5 contains a provision to allow preparation of bedloaded 5-digit packages of Presorted BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M722.5.0 contains provisions for preparing Presorted BPM machinable parcels. These provisions eliminate the 1,000 cubic inch sacking minimum option, provide for preparation of an ASF sack when DBMC rates are claimed, and change the line 2 sack labeling class abbreviation from “STD B” to “PSVC.” M723 is added that contains the provisions for preparing Carrier Route BPM. M723.2.0 contains the preparation requirements for Carrier Route BPM flats. M723.2.1 contains new packaging requirements. M723.2.2 through M723.2.4 contains new sacking minimums, requires preparation of carrier route sacks, provides for optional preparation of 5-digit scheme carrier routes sacks for Carrier Route BPM flats and amends the Line 2 sack labels to change the class abbreviation from “STD B” to “PSVC.” M723.2.5 contains a provision to allow preparation of bedloaded carrier route packages of BPM flats weighing up to 40 pounds when prepared for and entered at DDU rates. M723.3.0 contains preparation requirements for Carrier Route BPM weighing less than 10 pounds. M723.3.1 sets forth new packaging requirements for Carrier Route BPM irregular parcels weighing less than 10 pounds. M723.3.2 through M723.3.4 contain sack preparation requirements that change the carrier route sack minimum, make it a required level of sack, and amend line 2 sack labels to change the class abbreviation from “STD B” to “PSVC.” M723.3.5 contains a provision to allow preparation of bedloaded carrier route packages of BPM irregular parcels weighing up to 40 pounds when prepared for and entered at DDU rates. M723.4.0 contains requirements for Carrier Route BPM irregular parcels weighing 10 or more pounds. M723.4.1 requires Carrier Route BPM irregular parcels weighing 10 or more pounds to be prepared only in direct carrier route sacks containing a minimum of 20 pounds of mail. M723.5.0 permits machinable parcels to qualify for Carrier Route BPM rates only if prepared in a direct carrier route sack that contains a minimum of 10 addressed pieces or 20 pounds. M730 is added to contain standards for Media Mail (formerly in M630.4.0) and is amended to reflect the subclass name change to “Media Mail.” M730.1.0 contains basic standards. M730.2.1 (formerly M630.4.4) contains sack and packag

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