# Proposed Domestic Mail Manual Changes to Implement the Rate, Fee, and Classification Changes Proposed in Docket No. R97-1

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URL: https://www.frixlaw.com/law-library/documents/fr%3A98-6553

## Record

- **Collection:** Federal Register
- **Document type:** Proposed Rule
- **Published:** March 16, 1998
- **Citation:** 63 FR 12864

## Text

SUMMARY: On July 10, 1997, the Postal Service, acting under sections
3622 and 3623 of the Postal Reorganization Act (39 U.S.C. 3622, 3623),
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. R97-1. A notice of filing,
with a description of the Postal Service's proposals, was published by
the PRC on July 23, 1997, in the Federal Register (62 FR 39660-39708).
This document provides information on the implementing rules for the
rate, fee, and classification changes that the Postal Service proposes
to adopt if the PRCs recommended decision on R97-1 is consistent with
the Postal Service's request and the Governors of the Postal Service,
acting pursuant to 39 U.S.C. 3625, approve that recommended decision.

DATES: Comments must be received on or before April 15, 1998.

ADDRESSES: Mail or deliver written comments to the Manager, Mail
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW,
Room 6800, Washington, DC 20260-2405. Copies of all written comments
will be available for inspection and photocopying between 9 a.m. and 4
p.m., Monday through Friday, at the above address.

FOR FURTHER INFORMATION CONTACT: Lynn M. Martin, 202-268-6351 (all
topics except delivery confirmation and prepaid reply mail), Paul
Lettman, 202-268-6261 (information on Standard Mail (B)), Thomas
DeVaughan, 202-268-4491 (information on business reply mail and prepaid
reply mail), John Gullo, 202-268-7322 (information on delivery
confirmation).

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No.
R97-1 included 17 major classification changes and increases in most
existing rate and fee categories. The major classification changes
would (1) for First-Class Mail, eliminate the additional ``heavy
piece'' presort discount for mailpieces weighing more than 2 ounces;
(2) for First-Class Mail, add a prepaid reply mail category with
discounted first-ounce rates; (3) for First-Class Mail, add a qualified
business reply mail category with discounted first-ounce rates; (4) for
Priority Mail, eliminate the Presorted Priority Mail rate; (5) for
Periodicals, provide separate per-piece rates for 5-digit presort and
3-digit presort in all rate categories and for all mail processing
categories; (6) for Periodicals, apply the 3-digit presort rate to
pieces sorted to all 3-digit ZIP Code prefixes (unique and nonunique 3-
digits); (7) for Standard Mail (A), eliminate the single-piece rate
category and provide for the mailing of keys and identification devices
as First-Class Mail or Priority Mail plus fees; (8) for Standard Mail
(A), apply a residual shape surcharge on pieces that are prepared as
parcels or are not letter-size or flat-size; (9) for Express Mail,
Priority Mail, First-Class Mail (other than cards), Standard Mail (A),
Parcel Post, and Library Mail, apply a surcharge to those pieces
containing mailable hazardous medical material and apply a higher
surcharge to those pieces containing other mailable hazardous material;
(10) for Standard Mail (B), provide a barcoded discount for mailings
meeting certain volume and preparation criteria; (11) for Parcel Post,
add discounts for entry at destination sectional center facilities
(DSCFs) and destination delivery units (DDUs); (12) for inter-BMC
Parcel Post, add two levels of discount (Origin BMC and BMC Presort)
for sorting mailings to bulk mail centers (BMCs); (13) for Parcel Post,
allow 10% or fewer of the pieces in a mailing to measure over 108
inches in combined length and girth, not to exceed 130 inches in
combined length and girth, and subject to a rate equal to that for a
70-pound parcel for the zone to which the parcel is addressed; (14) for
Parcel Post, add a balloon rate provision so that pieces exceeding 84
inches (but not exceeding 108 inches) in length and girth combined and
weighing less than 15 pounds would be subject to a rate equal to that
for a 15-pound parcel for the zone to which the parcel is addressed;
(15) for registered mail, would provide insurance for all articles
having a value of $0.01 or more under the current indemnity maximums
and restrictions (mail with no value ($0.00) would be excluded from
insurance coverage); (16) for insured mail, make available a new bulk
insurance service category; and (17) for Priority Mail and Standard
Mail (B), add a delivery confirmation service.
Part A of this document summarizes the proposed revisions to the
Domestic Mail Manual (DMM) necessary to implement R97-1 by class,
subclass, and special service category. Part B summarizes proposed
changes to the DMM by module, followed by the proposed revisions to the
DMM standards.
Comments are solicited on the implementing DMM standards in Part B.
The proposed rates and proposed new rate categories and rate structures
are included in Part B. However, the existence of the new categories
and structures and the amount of the corresponding rates or fees
attached to them and the proposed rate and fee changes for existing
categories are outside the scope of this rulemaking process, because
they are currently subject to evaluation by the Postal Rate Commission.
For example, comments indicating delivery confirmation service should
not be offered or should be offered at a different rate would not be
appropriate, whereas comments suggesting changes in the proposed
implementing rules for this service in DMM S918 would be appropriate.

A. Summary of Proposed DMM Revisions

1. Express Mail

Rate Highlights
Except for a $0.05 decrease in the 2-pound rate to $14.95, moderate
rate increases are proposed for all Express Mail rates. The fee for
pickup service is proposed to increase from $4.95 to $8.25 per
occurrence.
Rate Structure
Surcharges for mailable hazardous material are proposed. Separate
per-piece surcharges are proposed for hazardous medical material
($0.50) and for other hazardous material ($1.00).

2. Priority Mail

Rate Highlights
Increases are proposed for all Priority Mail rates. The fee for
pickup service is proposed to increase from $4.95 to $8.25 per
occurrence.
Rate Structure
Delivery Confirmation. It is proposed to offer delivery
confirmation service with Priority Mail. This service would be obtained
in two forms: (1) an electronic option at no additional fee for mailers
who themselves apply the identifying barcodes to each piece, provide an
electronic manifest, and retrieve confirmation information
electronically; and (2) a retail (manual) option for a $0.35 fee, with
delivery information provided through a USPS Internet address or a
toll-free telephone number. See DMM S918 in Part B for

[[Page 12865]]

details on preparing delivery confirmation mail.
Keys and Identification Devices. It is proposed that keys and
identification devices that weigh more than 11 ounces but no more than
2 pounds are subject to the 2-pound Priority Mail rate plus a $0.30
fee.
Elimination of Presort Category. It is proposed to eliminate the
Presorted Priority Mail rate category.
Hazardous Material Surcharges. Surcharges for mailable hazardous
material are proposed. Separate per-piece surcharges are proposed for
hazardous medical material ($0.50) and for other hazardous material
($1.00).

3. First-Class Mail

Rate Highlights
It is proposed that the single-piece first-ounce letter rate
increase only one cent from $0.32 to $0.33, and that the rate for
additional ounces remain the same at $0.23. The nonstandard surcharge
for one-ounce or less single-piece rate mail would increase from $0.11
to $0.16, and the nonstandard surcharge for one-ounce or less presorted
pieces would increase from $0.05 to $0.11. Small increases are proposed
for Automation and Presorted rates. The annual presort mailing fee is
proposed to increase from $85.00 to $100.00.
Rate Structure
Heavy Piece Discount. It is proposed to eliminate the additional
presort discount for the first ounce of mailpieces weighing more than 2
ounces.
Keys and Identification Devices. It is proposed that keys and
identification devices that weigh 11 ounces or less are subject to the
applicable single-piece letter rate, plus a $0.30 fee, and if
applicable, the nonstandard surcharge.
Hazardous Material Surcharge. Surcharges for mailable hazardous
material are proposed. Separate per-piece surcharges are proposed for
hazardous medical material ($0.50) and for other hazardous material
($1.00).
Prepaid Reply Mail. It is proposed to add a new classification
category and corresponding rate structure for prepaid reply mail. The
rate structure includes lower first-ounce First-Class Mail rates. There
are also proposed permit fees and monthly accounting fees. Requirements
for this new classification are described under ``Special Services''
below.
Qualified Business Reply Mail. It is proposed to add a new
classification category and rate structure for qualified business reply
mail, which will replace the business reply mail accounting system
(BRMAS). The rate structure includes a lower first-ounce rate. The fee
structure requires an annual permit fee and an annual accounting fee
for an advance deposit account. Requirements for this new
classification category are described under ``Special Services'' below.
Mail Preparation
Rate Markings. It is proposed to allow the ``Presorted'' marking to
be abbreviated ``PRSRT.''

4. Periodicals

Rate Highlights
It is proposed that delivery office and SCF pound rates will
decrease, zones 1 through 3 advertising pound rates will decrease,
zones 5 through 8 advertising pound rates will increase, the editorial
pound rate will increase, and the editorial per-piece discount will
increase. Authorization fees will not change, except that the
additional entry fee will decrease from $85.00 to $50.00.
Rate Structure
Per-Piece Rates. Separate 5-digit and 3-digit presort per-piece
rates are proposed for Regular, Nonprofit, Classroom, and In-County
subclasses. It is further proposed that the 3-digit rates will apply to
both unique and nonunique 3-digit ZIP Code prefixes.
To qualify for the nonautomation 5-digit rates, mail must be
prepared in a 5-digit package of six or more pieces and must be
containerized as follows: for letter mail, be placed in a 5-digit tray;
for nonautomation flat mail, be placed in a 5-digit sack or on any
level of pallet. To qualify for automation 5-digit rates for letters,
mail must be part of a group of 150 pieces for the same 5-digit or 5-
digit scheme, properly placed in a 5-digit or 5-digit scheme tray. To
qualify for automation 5-digit rates for flats, mail must be prepared
in a 5-digit package of six or more pieces and placed in any level of
sack or on any level of pallet.
To qualify for the nonautomation 3-digit rates, sacked flat-sized
mail must be prepared in a 5-digit or 3-digit package of six or more
pieces each and must be placed in a 3-digit sack; trayed letter-size
mail must be prepared in a 5-digit or 3-digit package of six or more
pieces each, and must be placed in a 3-digit tray. Palletized flat-
sized mail must be prepared in a 3-digit package of six or more pieces
and placed on a 3-digit or higher level of pallet.
To qualify for automation 3-digit rates for letters, mail must be
part of a group of 150 pieces for the same 3-digit or 3-digit scheme
and be properly placed in a 3-digit or 3-digit scheme tray. To qualify
for automation 3-digit rates for flats, mail must be prepared in a 3-
digit package of six or more pieces and placed in a 3-digit or higher
level of sack or on a 3-digit or higher level of pallet.
Mail Preparation
Automation Letters. It is proposed that preparation of the 5-digit
or 5-digit scheme sort for letter-size automation rate mailings be
revised from a required level of sort to an optional level of sort.
SCF Sack. It is proposed that the preparation of an SCF sack for
nonletter mail be revised from an optional level of preparation to a
required level of preparation. SCF packages will not be permitted.
Preparation of an optional origin/required entry 3-digit sack will be
eliminated and preparation of an optional origin/required entry SCF
sack will be required.
Forwarding and Return
Charges for the return of Periodicals mail bearing the ``Address
Service Requested'' endorsement will be paid at the First-Class Mail
rates for pieces weighing 11 ounces or less and at the Priority Mail
rates for pieces weighing over 11 ounces. This is due to the
elimination of the Standard Mail (A) single-piece rates discussed
below.

5. Standard Mail (A)

Rate Highlights
Reductions are proposed for most of the pound rates. A change in
the relationship between the basic Enhanced Carrier Route rates and the
5-digit Automation letter rates is proposed. The 5-digit Automation
letter rates would be lower than the basic Enhanced Carrier Route
rates. The proposed basic Enhanced Carrier Route rates are the same for
letter-size and for nonletter-size pieces. A $0.032 (regular) and
$0.008 (nonprofit) per-piece rate (in addition to the pound rate) is
proposed for saturation Enhanced Carrier Route mailings subject to the
piece/pound rates. The annual presort mailing fee is proposed to
increase from $85.00 to $100.00.
Rate Structure
Elimination of Single-Piece Rates. It is proposed to eliminate the
single-piece Standard Mail (A) rates. If the single-piece Standard Mail
(A) subclass were kept, its proposed rates would exceed the First-Class
Mail rates. Standard Mail (A) rates are designed to be bulk or
presorted rates. The elimination of single-piece Standard Mail (A)
rates will eliminate the current dual system for processing and
transporting individual

[[Page 12866]]

lightweight pieces (pieces weighing less than 16 ounces). The
elimination of single-piece Standard Mail (A) rates will affect the
treatment of pieces in mailing jobs that remain after preparing an
Enhanced Carrier Route and/or an Automation rate mailing. See ``Mail
Preparation'' below for further information. It also will affect the
fees for forwarding and return of Standard Mail (A) as described under
``forwarding and return'' below. With one exception, single pieces that
weigh less than 16 ounces will be subject to return postage at single-
piece First-Class or Priority Mail rates (multiplied by 2.472). The
exception is that single pieces weighing less than 16 ounces that could
qualify for single-piece Special Standard Mail or Library Mail rates
will continue to be eligible for those rates upon return if properly
endorsed because there are no minimum weight requirements for those two
subclasses of Standard Mail (B).
Residual Shape Surcharge. A $0.10 per-piece residual shape
surcharge is proposed (in addition to the applicable nonletter postage)
for pieces that are prepared as parcels or that are not letter size or
flat size. This surcharge will apply to such pieces mailed at all
Standard Mail (A) subclasses (Regular, Enhanced Carrier Route,
Nonprofit, Nonprofit Enhanced Carrier Route).
Hazardous Material Surcharges. Surcharges for mailable hazardous
material are proposed. Separate per-piece surcharges are proposed for
hazardous medical material ($0.50) and for other hazardous material
($1.00).
Mail Preparation
Rate Markings and Nomenclature. Many mailers have indicated a
preference for ``Presorted Standard'' over ``Bulk Rate'' as the basic
rate marking for their mail. The Postal Service also prefers this
marking because it indicates the mail class and is consistent with the
rate markings for First-Class Mail. Accordingly, the Postal Service
proposes revising the basic rate marking requirements for regular rate
mailings (including Enhanced Carrier Route) from ``Bulk Rate'' or
``Blk. Rt.'' to ``Presorted Standard'' or ``PRSRT STD.'' Mailers will
be given one year from the date of implementation of the R97-1 rate
case to change their markings. During the one-year transition period,
either the ``Bulk Rate'' or the ``Presorted Standard'' markings or
their authorized abbreviations will be acceptable. For simplicity, July
1, 1999, is used in the proposed DMM language to represent the date
that is one year after implementation of the R97-1 rate case. This date
will be revised in the final rule to give effect to the actual date of
implementation as decided by the Postal Service Board of Governors.
To provide further consistency, the DMM will use the term
``Presorted Standard Mail (A)'' or ``Presorted Standard'' when
referring to the mailings and rates now referred to in the DMM as
``nonautomation presort (3/5 and basic) Standard Mail (A).''
It also is proposed that pieces subject to the $0.10 residual shape
surcharge be required to have the marking ``RSS'' printed on each piece
either in the postage area or on the line immediately above or two
lines above the address.
``Residual'' Pieces to a Mailing Job. Currently, Standard Mail (A)
Enhanced Carrier Route, Automation, and nonautomation 3/5 and basic
presort (to be renamed Presorted) rate mailings must each meet a
separate 200-piece or 50-pound minimum quantity per mailing
requirement. Pieces that cannot meet the minimum quantity per mailing
requirement must be mailed at the single-piece Standard Mail (A) rates.
Since it is proposed to eliminate the single-piece Standard Mail
(A) rates, the Postal Service proposes a limited exception to the
minimum volume requirements for mailings at Presorted (3/5 and basic)
rates for ``residual'' pieces in a Standard Mail (A) mailing job. These
residual pieces are groups of fewer than 200 pieces that remain after
preparing an Enhanced Carrier Route or Automation mailing (or both).
Specifically, the Postal Service proposes that these ``residual''
pieces be subject to the applicable Presorted Standard Mail (A) rates
(nonautomation 3/5 and basic rates). Under this proposal, pieces in an
Enhanced Carrier Route rate mailing and/or in an Automation rate
mailing that have each separately met a 200-piece or 50-pound minimum
quantity requirement may be counted toward the minimum quantity
requirement for a Presorted (3/5 and basic) rate mailing, provided that
(1) the Enhanced Carrier Route rate mailing and/or the Automation rate
mailing, and the Presorted rate mailing are part of the same mailing
job, and (2) the mailings are all reported on the same postage
statement. Under no circumstances may pieces mailed at the Presorted
Standard (nonautomation 3/5 and basic) rates be counted toward the
minimum volume requirements for an Enhanced Carrier Route or an
Automation rate mailing. Furthermore, the pieces mailed at the
Presorted Standard rates must not bear any Enhanced Carrier Route or
Automation markings. Only ``Presorted Standard'' (or until July 1,
1999, ``Bulk Rate''), ``Nonprofit Organization,'' or applicable
authorized abbreviations may appear on pieces mailed at the Presorted
Standard rates.
The alternative of subjecting these ``residual'' pieces to First-
Class Mail rates raises problems for both mailers and the Postal
Service: mailers would have to submit two postage statements and the
Postal Service would have to enter information from two postage
statements into its Permit System. Also, the forwarding and return
rules are different for the two classes of mail. Ancillary service
endorsements intended for the majority of the mailing job that is being
mailed as Standard Mail (A) might not be appropriate for the
``residual'' portion of the job that is mailed as single-piece First-
Class Mail. For example, ``Change Service Requested'' is available to
all Standard Mail (A), whereas for First-Class Mail it is available
only to mailers participating in the electronic address change service
(ACS). To ensure that ``residual'' pieces mailed at the First-Class
Mail rates receive the correct forwarding and return services, mailers
would have to use envelopes that bear First-Class Mail rate markings
but did not bear the Standard Mail (A) markings ``Bulk Rate,''
``Presorted Standard,'' or ``Nonprofit Organization'' or inappropriate
ancillary service endorsements. However, re-enveloping the ``residual''
mailpieces would be time consuming, expensive, and impractical for most
Standard Mail (A) mailers. If the Postal Service allowed mailers simply
to add a ``single-piece'' or a ``First-Class single-piece'' marking to
their ``residual'' mailpieces, mail processing and delivery personnel
would have to visually verify the postage and address areas of each
mailpiece to ensure proper handling and delivery--a costly and
inefficient process. Furthermore, there are different service standards
for First-Class Mail and Standard Mail (A). This would pose a
significant complicating factor for mailers with time-sensitive
advertising such as that for sales on certain dates. If the
``residual'' portion of a Standard Mail (A) mailing job were required
to be mailed at First-Class Mail rates, it could arrive too early to
have the intended effect on the recipient. It also would pose
difficulties for mailers attempting to schedule follow-up activities,
such as telemarketing, staffing, etc., around in-home delivery dates.
The option to mail the ``residual'' portion at a later date so that its
First-Class Mail delivery dates would better coincide with the Standard
Mail (A) delivery dates for the major portion of the mailing job would
not be possible for permit imprint mailers because the ``residual''
mail would not

[[Page 12867]]

meet the minimum quantity requirement of 200 pieces necessary to submit
a single-piece rate permit imprint mailing.
Forwarding and Return
With two exceptions, charges for the forwarding and return of
Standard Mail (A) will be paid at the First-Class Mail rates for pieces
weighing 11 ounces or less and at the Priority Mail rates for pieces
weighing over 11 ounces. This is due to the elimination of the single-
piece Standard Mail (A) rates discussed above. The exceptions are (1)
matter returned under Bulk Parcel Return Service (BPRS) and (2) matter
that qualifies for a single-piece Special Standard Mail or Library Mail
rate under DMM E630 and is endorsed to show that forwarding and return
is requested at one of those rates.

6. Standard Mail (B)

Rate Highlights
Because of cost increases, Parcel Post as a whole is proposed to
have higher than average rate increases. Increases are proposed to most
Bound Printed Matter and Library Mail rates. On average, proposed
Special Standard Mail rates will be about the same as current rates.
The annual fees for destination bulk mail center (DBMC) rates and
presorted Special Standard Mail have increased from $85.00 to $100.00.
The fee for pickup service for Parcel Post is proposed to increase from
$4.95 to $8.25 per occurrence. (Pickup service is not available for
mailings claiming Parcel Post destination entry rates or Origin Bulk
Mail Center (OBMC) discounts.)
Rate Structure
All Standard Mail (B). a. Barcoded Discount. A discount of $0.04
per piece is proposed for machinable pieces bearing a correct and
properly prepared barcode representing the 5-digit ZIP Code of the
address on the mailpiece. To be eligible, the pieces must be part of a
mailing containing at least 50 pieces of Parcel Post. The Postal
Service is investigating a process to certify the quality of barcodes.
This barcoded discount would be available for all Standard Mail (B)
rates except Parcel Post mail at the destination sectional center
facility (DSCF) or destination delivery unit (DDU) rates, Parcel Post
DBMC rate mail entered at an auxiliary service facility (ASF), Bound
Printed Matter at the Carrier Route rates, and presorted Special
Standard Mail at the 5-digit rate.
b. Delivery Confirmation. It is proposed to offer delivery
confirmation service with Standard Mail (B). This service would be
obtained in two forms: (1) an electronic option for a $0.25 fee for
mailers who apply the identifying barcodes to each piece, provide an
electronic manifest, and retrieve confirmation information
electronically; and (2) a retail option for a $0.60 fee, with delivery
information provided through a USPS Internet address or a toll-free
telephone number. Mailers using the electronic option must have the
quality of their printed barcodes certified by the USPS. See DMM S918
in Part B for details on preparing delivery confirmation mail.
Parcel Post. a. Presort Discounts for Inter-BMC Rates. An Origin
BMC (OBMC) discount of $0.57 per piece is proposed for mail entered at
a BMC that is sorted to BMCs if machinable parcels or sorted to BMCs
and ASFs if nonmachinable parcels. A BMC Presort discount of $0.12 per
piece is proposed for pieces sorted to BMCs if machinable parcels or
sorted to BMCs and ASFs if nonmachinable parcels and entered at any
postal facility other than a BMC that accepts bulk mailings. To qualify
for either of these rates, pieces must be part of a mailing of at least
50 pieces mailed at Parcel Post rates. See ``Mail Preparation'' below
for more details.
b. Drop Shipment Rates. A new rate schedule is proposed for pieces
entered at the delivery unit from which the parcels are delivered
(destination delivery unit (DDU) rate). DDU rate pieces must be part of
a mailing of at least 50 pieces mailed at Parcel Post rates. A new rate
schedule also is proposed for pieces entered at the destination
sectional center facility (DSCF). DSCF rate pieces must be part of a
mailing of at least 50 pieces mailed at Parcel Post rates. DSCF rate
pieces must be sorted to 5-digit ZIP Codes as described under ``Mail
Preparation'' below.
c. Balloon Rate. It is proposed that any item weighing less than 15
pounds and measuring over 84 inches (but less than 108 inches) in
combined length and girth be charged the applicable Parcel Post rate
for a 15-pound parcel.
d. Oversized Pieces. It is proposed to allow up to 10% of the
pieces in each Parcel Post mailing to measure over 108 inches, but not
more than 130 inches, in combined length and girth. Such oversized
pieces would be charged the applicable Parcel Post rate for a 70-pound
parcel.
e. Hazardous Material Surcharges. Surcharges for mailable hazardous
material are proposed. Separate per-piece surcharges are proposed for
hazardous medical material ($0.50) and for other hazardous material
($1.00).
Library Mail. Hazardous Material Surcharges. Surcharges for
mailable hazardous material are proposed. Separate per-piece surcharges
are proposed for hazardous medical material ($0.50) and for other
hazardous material ($1.00).
Mail Preparation
Markings. a. General. It is proposed to require that the current
subclass markings ``Bound Printed Matter,'' ``Special Standard,'' and
``Library Rate'' or ``Library Mail'' (or authorized abbreviations) be
placed in the postage area on each mailpiece (i.e., be printed or
produced as part of, or directly below or to the left of, the permit
imprint indicia, meter stamp or impression, or adhesive or precanceled
stamp). In addition, it is proposed that Standard Mail (A) mailed at
one of these Standard Mail (B) rates under the exception in DMM
E612.4.6 would be required to bear the appropriate Standard Mail (B)
rate marking rather than the applicable Standard Mail (A) rate marking.
b. Parcel Post. It is proposed that all Parcel Post rate mail bear
a ``Parcel Post'' or ``PP'' rate marking in the postage area. This
would include Standard Mail (A) mailings paid at Parcel Post rates
under the exception in DMM E612.4.6. Mailings qualifying for drop
shipment rates must bear an additional marking. A new generic drop
shipment marking is proposed, which will be required on each piece
mailed at a DBMC, DSCF, or DDU rate. The proposed marking ``Drop
Shipment'' or its abbreviation ``D/S'' must be printed or produced as
part of, or directly below or to the left of, the permit imprint or
meter indicia, or may appear in the line above or two lines above the
address. The drop shipment marking would be in addition to the ``Parcel
Post'' marking or abbreviation.
Because of the new generic drop shipment marking, the requirement
for the marking ``DBMC Parcel Post'' or ``DBMC PP'' is eliminated for
DBMC rate mail. Also eliminated is the requirement to show the 5-digit
or 3-digit ZIP Code of the post office of mailing in the drop shipment
marking if the postage for the piece is paid with a permit imprint and
the office of mailing is in a different 3-digit ZIP Code area from the
post office in the return address. For Parcel Post, the requirement for
a ``Bulk Rate'' marking also has been eliminated. Mailpieces bearing
the ``DBMC Parcel Post,'' the 3-digit ZIP Code of the office of
mailing, and ``Bulk Rate'' markings will be accepted for one year after
implementation of the R97-1 rate case.

[[Page 12868]]

c. Bound Printed Matter. It is proposed to change the marking
``Bulk Rate'' or ``Blk. Rt.'' to ``Presorted'' or ``PRSRT'' for bulk
Bound Printed Matter mailings. The ``Presorted'' portion of the marking
will be permitted to appear in either the postage area or in the line
above or two lines above the address. The name of the rate category
also will change from bulk Bound Printed Matter to presorted Bound
Printed Matter. For carrier route Bound Printed Matter, the need for
the ``Bulk Rate'' marking in addition to the ``Carrier Route Presort''
marking is eliminated. Carrier route Bound Printed Matter mailings must
show ``Bound Printed Matter'' in the postage area and ``Carrier Route
Presort'' or ``CAR-RT SORT'' in the postage area or in the line above
or two lines above the address. Mailers will be permitted, but not
required, to show the ``Presorted'' or ``PRSRT'' marking on carrier
route Bound Printed Matter in addition to the required ``Bound Printed
Matter'' and ``Carrier Route Presort'' or ``CAR-RT SORT'' markings. The
``Catalog'' or ``Catalog Rate'' marking is eliminated for Bound Printed
Matter. Pieces bearing the ``Bulk Rate'' or ``Blk. Rt.'' and
``Catalog'' or ``Catalog Rate'' markings will be accepted for one year
after implementation of the R97-1 rate case.
d. Special Standard. For Presorted Special Standard mail, it is
proposed to allow the ``Presorted'' portion of the current marking to
be abbreviated ``PRSRT'' and to allow it to appear either in the
postage area or in the line above or two lines above the address. The
``Special Standard'' marking will be required to be placed in the
postage area.
Origin BMC Discount. To qualify for the Origin BMC (OBMC) discount,
a piece must be part of a mailing of at least 50 Parcel Post rate
pieces. Pieces eligible for the Origin BMC rate must be entered at a
BMC. Machinable parcels: (1) must be sorted to BMCs using DMM labeling
list L601, (2) must be prepared in pallet boxes, each labeled to a BMC
and each containing a minimum of 54 inches of mail, and (3) must not be
sorted into overflow pallet boxes or sacks. Nonmachinable parcels: (1)
must be sorted to BMCs and ASFs using new DMM labeling list L605, (2)
must be placed directly on pallets (no pallet boxes are allowed), each
labeled to a BMC or ASF and each pallet measuring at least 48 inches
high from the floor (mail and pallet), and (3) must not be sorted into
overflow pallets or sacks. Pallets and pallet boxes also must meet the
provisions of M041.
BMC Presort Discount. To qualify for the BMC Presort discount, a
piece must meet the same rules for sorting machinable parcels to BMCs
and nonmachinable parcels to BMCs and ASFs as required for the Origin
BMC discount above, except that BMC Presort mail may be entered at any
postal facility (other than a BMC) that has a business mail entry unit.
DSCF Rate. To qualify for the DSCF rate, a piece must be part of a
mailing of at least 50 Parcel Post rate pieces. Pieces eligible for the
DSCF rate must be entered at an SCF listed in DMM L005 and must be for
delivery within the service area of the entry SCF. To qualify, the
pieces must be presorted and labeled to 5-digit sacks or pallets as
follows. Machinable and nonmachinable parcels may be combined in the
same sack or pallet to meet the minimum sortation requirements. If
sacked, each 5-digit sack must contain a minimum of 10 pieces. If
palletized, each 5-digit pallet must meet one of the following minimum
preparation requirements: (1) contain at least 50 pieces and 250 pounds
of mail, or (2) be at least 42 inches high (height of mail and pallet).
Pallet boxes are not permitted.
If palletized, the following additional requirements or
restrictions could apply. Currently, many BMCs transport mail for
certain 5-digit ZIP Code areas directly to the 5-digit associate post
office. A draft list of these 5-digit areas is found in DMM Exhibit
E652.5.0 in Part B. It is likely that this list will be revised in the
final rule. Five-digit pallets prepared for the DSCF rate for the 5-
digit ZIP Codes listed in this exhibit will be required to be entered
at the BMC rather than at the SCF to obtain the DSCF rate. This will
avoid incurring additional handling and transportation of this mail at
the affected SCFs. However, sacked mail for the 5-digit ZIP Codes
listed in Exhibit E652.5.0 must always be entered at the SCF (not at
the BMC). In addition, there are certain associate post offices that
cannot unload pallets. A list of these facilities may be found in the
Drop Shipment Product that is currently available from the National
Customer Support Center (NCSC) in Memphis, TN, 1-800-238-3150. For
these 5-digit ZIP Codes, the DSCF rate will be available only for mail
that can be presented in 5-digit sacks containing a minimum of 10
pieces (i.e., the DSF rate will not be available for palletized mail).
For DSCF mail, the Postal Service will unload palletized loads. Mailers
must unload sacked and bedloaded mailings. Except for local mailings,
appointments for dropping mail at an SCF must be scheduled through the
appropriate district control center (see DMM E652 in Part B). Pallets
also must meet the provisions of M041.
DDU Rate. To qualify for the DDU rate, a piece must be part of a
mailing of at least 50 Parcel Post rate pieces. Pieces eligible for the
DDU rate must be entered at the postal facility where the carrier who
delivers the parcel is located. There are no specific sortation
requirements other than the requirement that mail must be separated by
5-digit ZIP Code when unloaded at the DDU facility, and the mail must
not be prepared in pallet boxes. If a mailer chooses to sack or
palletize, there are no minimum sack or pallet requirements, but the
sack or pallet must be labeled as a 5-digit sack or pallet. The mailer
is responsible for unloading all DDU loads (even if palletized).
Appointments must be made by contacting the DDU at least one day in
advance. Mailers desiring electronic confirmation of DDU mail entry
also must schedule the appointment through the district control center.
A list of delivery unit facilities and their telephone numbers is
available through the NCSC in the Drop Shipment Product.
Plant-Verified Drop Shipment (PVDS). Pieces must be part of a
mailing of at least 50 Parcel Post rate pieces in order to qualify for
DDU, DSCF, and DBMC rates, and to qualify for OBMC, BMC Presort, and
barcoded discounts. When Parcel Post rate pieces 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
minimum 50-piece volume requirement. This means a mailer may enter
fewer than 50 pieces at an individual destination, provided there are
at least 50 Parcel Post rate pieces for the total of all the entry
points for that single mailing job listed on the PVDS register or PVDS
postage statement.
Bulk Parcel Post. Bulk Parcel Post is a separate subclass of
Standard Mail (B). Currently, there are no rates in effect for this
subclass, and no rates for this subclass were proposed by the Postal
Service in Docket No. R97-1. DMM E620.2.4e currently states that ``the
bulk Parcel Post rate is the rate applicable to each piece in a bulk
Parcel Post rate mailing at the single-piece rate or DBMC rate for that
zone for an item equal to the average weight per piece for all parcels
in the mailing to that zone, rounded up to the next whole pound.'' This
DMM section therefore establishes a method of computing postage at
Parcel Post rates. For mailings of identical weight pieces, this
averaging method is inconsequential, because the average weight of all
the pieces to a zone will always be the weight of a single piece.

[[Page 12869]]

For mailings of nonidentical weight pieces, DMM E620.2.2b currently
states that this method of postage payment can be used only if
authorized by the rates and classification service center (RCSC)
serving the post office of mailing. The Postal Service is proposing to
remove sections E620.2.2 and E620.2.4e from the DMM. Postal Service
Headquarters is not aware of any mailer that is currently authorized to
use this method of postage payment. If in fact there are mailers using
this method, they may request that their RCSC issue an authorization
for continuation of their postage payment procedure as an alternate
mailing system under DMM P730. This measure promotes clarity in the
DMM. The Postal Service is proposing various new rates and discounts
for Parcel Post that could be considered ``bulk rates'' because they
require a minimum volume of 50 pieces per mailing. Therefore, removing
references to ``Bulk Parcel Post rates'' in DMM E620 will reduce
confusion with the eligibility section for Parcel Post rates in new DMM
E630. As indicated above, the Postal Service also is proposing to
remove the requirement to mark pieces with a ``Bulk Parcel Post'' rate
marking. New DMM E630.6.0 is reserved for any future rates and
requirements for the Bulk Parcel Post subclass.

7. Special Services

Address Correction
No change is proposed to address correction service fees ($0.50
manual, $0.20 automated, per notice issued).
Address Changes for Election Boards
The fee is proposed to increase from $0.17 to $0.20. See DMM
R900.10.3 in Part B.
Business Reply Mail (BRM)
It is proposed that the annual permit fee increase from $85.00 to
$100.00, and the annual accounting fee increase from $205.00 to
$300.00. For regular BRM, mailers will pay the applicable First-Class
Mail rates plus a per-piece charge. The per-piece charge for regular
BRM with an advance deposit account will decrease from $0.10 to $0.08.
The per-piece charge for regular BRM without an advance deposit account
will decrease from $0.44 to $0.30.
It is proposed that a new category of BRM, Qualified Business Reply
Mail (QBRM), replace the current Business Reply Mail Accounting System
(BRMAS) category. For QBRM, mailers also will pay postage plus a fee;
however, a lower first-ounce rate of postage of $0.30 for letters and
$0.18 for cards is proposed for QBRM. Mailers of QBRM also will pay a
$0.06 per-piece charge and be required to use a business reply mail
advance deposit account.
Mailpiece design and barcoding requirements are revised for both
regular BRM and QBRM. Regular BRM and QBRM pieces that bear a barcode
will be required to meet the automation letter mailpiece design
requirements in DMM C810 and the barcoding standards in C840, so that
there are uniform requirements for mail that is processed on barcode
sorters. This will result in revised standards for preparation of
barcode window envelopes, including the placement of barcodes as they
appear through the windows. It also will allow a company logo to appear
beneath the delivery address line, provided that it is placed no lower
than \5/8\ inch from the bottom edge of the mailpiece and does not
interfere with the barcode clear zone. For barcoded and nonbarcoded
BRM, references to mailpiece design requirements in DMM C810 and C830
will replace current BRM standards relative to reflectance
requirements, paper weight, and self-mailers. This will lower paper
basis weight requirements for envelopes from 20-pound paper to 16-pound
paper and add basis weight, tabbing, and other requirements for self-
mailers. It is likely that self-mailers will be processed on automated
equipment. Meeting these requirements will ensure their ability to be
processed without damage.
The minimum thickness requirements for cards that are not barcoded
will not change. However, cards that bear a barcode under either
regular BRM or QBRM will be required to meet the thickness requirements
in DMM C810, to bring the barcoded BRM standards in line with
automation standards for other mail. For barcoded pieces, this will
increase the minimum thickness for cards measuring greater than 4\1/4\
inches high by 6 inches long from .007 inch to .009 inch. These larger
cards are subject to the rate for ``other than cards'' (now and under
the proposed standards). The minimum thickness for barcoded cards that
are eligible for the card rate (measuring 4\1/4\ inches by 6 inches or
less) will continue to be .007 inch.
Carrier Sequencing of Address Cards
The fee is proposed to increase from $0.17 to $0.20. See DMM
R900.1.1 in Part B.
Certificate of Mailing
Fees are proposed to increase. See DMM R900.4.0 in Part B.
Certified Mail
The fee is proposed to increase from $1.35 to $1.55. See DMM
R900.5.0 in Part B.
Collect on Delivery (COD)
Fees are proposed to increase. See DMM R900.6.0 in Part B. It also
is proposed to revise COD by removing its applicability to single-piece
Standard Mail (A), and to allow it to be used in conjunction with
delivery confirmation service (with Priority Mail and Standard Mail (B)
only).
Correction of Mailing Lists
The per-correction and minimum per-list fees are proposed to
increase. See DMM R900.10.1 in Part B.
Delivery Confirmation
A new delivery confirmation service is proposed for Priority Mail
and Standard Mail (B). This service will provide the mailer with
information about the date of delivery or attempted delivery. It is
anticipated that a signature (electronic return receipt) service also
will be available in early 1999. Until then, return receipt service
under DMM S915 may be used with delivery confirmation only if purchased
in connection with insurance for over $50.00, COD, or registry service.
Delivery confirmation service will be available at the time of mailing
only. This service will be obtained in two forms: (1) an electronic
option for mailers who apply identifying barcodes to each piece,
provide an electronic manifest, and retrieve confirmation information
electronically; and (2) a retail (manual) option, for which delivery
information would be provided through a USPS Internet address or a
toll-free telephone number. It is proposed that delivery confirmation
may be combined with insured mail, registered mail, COD, or special
handling. Delivery Confirmation also may be combined with restricted
delivery only if purchased along with insurance for over $50.00, COD,
or registry service. See DMM S918 in Part B for further details on
preparing delivery confirmation mail and R900.7.0 for fees.
Express Mail Insurance
Fees for merchandise insured for $500.01 to $5,000.00 are proposed
to increase. See DMM R900.8.0 in Part B.
Insured Mail
Fees for existing insurance service are proposed to increase. See
DMM R900.9.0 in Part B. The applicability of insurance to single-piece
Standard Mail (A) is deleted. Pieces formerly mailed at

[[Page 12870]]

single-piece Standard Mail (A) rates will be mailed as First-Class Mail
or Priority Mail and therefore will retain eligibility for insurance.
The proposal contains provisions for providing delivery confirmation
service in conjunction with insurance (for Priority Mail and Standard
Mail (B) only). In addition, a bulk insurance discount of $0.40 per
piece is proposed. To qualify for the bulk insurance discount, mailers
will be required to (1) enter mailings of insured articles under an
approved manifest mailing system agreement, (2) mail a minimum of
10,000 insured articles annually (a total of all insured articles
mailed at multiple locations), (3) provide a hard copy of Form 3877,
Firm Mailing Book for Accountable Mail, or facsimile (4) effective
early 1999, also provide a soft (electronic) copy of Form 3877, in an
approved format. Mailers will be required to request authorization from
the manager of Claims and Processing at the St. Louis Accounting
Service Center (ASC) to mail at the bulk insured rates and to file
claims under the alternative procedures for bulk insured mail. It is
anticipated that in early 1999 programming changes will have been made
at the St. Louis ASC that will tie in to the anticipated completion of
systems to electronically capture information on accountable mail at
delivery units. When or before these changes and systems are completed,
bulk insurance mailers will be provided with instructions for
electronically filing claims. The bulk insurance discount will be
available when rates are implemented and is not dependent on electronic
claim filing.
Merchandise Return Service
It is proposed that the annual permit fee increase from $85.00 to
$100.00. There is no proposed increase in the charge per returned
mailpiece. Revisions are made to the postage that is applicable to
pieces returned that weigh less than 16 ounces and to the marking
requirements that specify the return rate of postage. These changes are
necessary due to the proposed elimination of single-piece Standard Mail
(A) rates. The proposed postage and marking requirements are as
follows. If the permit holder desires matter weighing over 16 ounces to
be returned at a rate other than Parcel Post, the permit holder must
preprint the appropriate rate marking on the label (``Priority'' or
``Priority Mail,'' ``Bound Printed Matter,'' ``Special Standard,'' or
``Library Mail'' or ``Library Rate''). Pieces weighing more than 11
ounces and less than 16 ounces may be returned only at Priority Mail
rates, or, if the contents meet the applicable standards, at the
Special Standard or Library Mail rates. The permit holder must preprint
the applicable rate marking on matter weighing more than 11 ounces and
less than 16 ounces. Pieces weighing 11 ounces or less may be returned
only at First-Class Mail or Priority Mail rates, or, if the contents
meet the applicable standards, at the Special Standard or Library Mail
rates. The permit holder must preprint the applicable rate marking on
matter weighing 11 ounces or less returned at the Priority Mail,
Special Standard, or Library Mail rates. It is recommended but not
required that matter weighing 11 ounces or less to be mailed at the
First-Class Mail rates bear the preprinted marking ``First-Class'' or
``First-Class Mail.''
Money Orders
No changes are proposed for money orders.
On-Site Meter Settings
The Postal Service is proposing to increase two of the on-site
meter setting fees. The current fee of $3.25 for additional meter
setting will increase to $4.00, and the fee for checking a meter in and
out of service is proposed to increase from $7.50 to $8.50. No
increases are proposed to the scheduled appointment setting fee for the
first meter or to the unscheduled or emergency setting fee for the
first meter.
Parcel Airlift
Individual parcel airlift fees are proposed to increase from $0.40
to $0.45 for up to two pounds, from $0.75 to $0.85 for over two up to
three pounds, from $1.15 to $1.30 for over three to up to four pounds,
and from $1.55 to $1.75 for over four pounds.
Permit Imprint
The application fee for permit imprints is proposed to increase
from $85.00 to $100.00.
Post Office Boxes, Caller Service, and Reserve Call Numbers
Post office box fees (except the $0 fee for all box sizes in Group
E) are proposed to increase. Fees for caller service and reserve call
numbers are also proposed to increase (see DMM R900.16.0 and R900.3.0
in Part B).
Prepaid Reply Mail
A proposed new classification, Prepaid Reply Mail (PRM), will allow
businesses or other organizations to provide their correspondents with
Postal Service-approved envelopes or cards that have postage prepaid.
This will allow a PRM permit holder's customers to return mail such as
bill payments without affixing postage. Mailers who participate in PRM
must use automation-compatible and prebarcoded letters and cards. A
new, reduced first-ounce rate of postage of $0.30 for letters and $0.18
for cards that is prepaid by the envelope or card provider prior to or
at the time of original mailing is proposed. Mailers prepay postage on
PRM pieces based on an estimated number of returns through the mail.
The mailer (permit holder) must keep records of the actual number of
returns. The actual postage owed is reconciled by the mailer and the
USPS through a periodic audit. A yearly $100.00 permit fee is proposed.
In addition, the permit holder will pay a monthly fee of $1,000.00 to
cover Postal Service auditing and administrative activities. PRM
mailers will have to obtain authorization to distribute PRM pieces from
the post office where the PRM pieces are initially distributed.
Registered Mail
The maximum value level for registered mail without postal
insurance is decreased from $100.00 to $0.00. All registered mail with
a value of $0.01 or more will be automatically provided with insurance
(up to a maximum indemnity of $25,000 per piece). Insurance coverage is
included in the applicable registered mail fee. Only mail of no value
may be mailed as uninsured registered mail. In addition, registered
mail fees are proposed to increase (see DMM R900.18.0 in Part B).
Proposed DMM revisions will allow the use of delivery confirmation
service with registered mail.
Restricted Delivery
No changes are proposed to restricted delivery fees. Proposed DMM
revisions will allow the use of restricted delivery with delivery
confirmation service provided it is purchased along with insurance for
more than $50.00, COD, or registry service.
Return Receipt
Fees for return receipt are proposed to increase (see DMM R900.20.0
in Part B). Proposed revisions are made to the DMM to allow use of
return receipt service with delivery confirmation service only if
purchased in connection with insurance for over $50, COD, or registry
service. In 1999, signature (electronic return receipt) service will be
offered with delivery confirmation service, without a requirement to
purchase any other special service to receive it.

[[Page 12871]]

Return Receipt for Merchandise
Fees for return receipt for merchandise are proposed to increase
(see DMM R900.21.0 in Part B). It also is proposed to delete the
availability of this service with single-piece Standard Mail (A),
because single-piece Standard Mail (A) will be eliminated.
Special Handling
Substantial increases are proposed to the special handling fees,
because the costs of providing this service have more than tripled
since the last omnibus rate case proceeding (see R900.22.0 in Part B).
In addition, the DMM is revised to conform to the Domestic Mail
Classification Schedule (DMCS) by making it clear that special handling
may be used with First-Class Mail and Priority Mail. Proposed DMM
revisions also will allow the use of delivery confirmation service with
special handling.
Stamped Cards
It is proposed to add a $0.02 fee per stamped card and a $0.04 fee
per double stamped card to cover manufacturing and printing costs.
Additionally, a fee of $0.80 would be added to the sale of a sheet of
40 stamped cards. This is consistent with the existing fee structure
for stamped envelopes, where customers are charged the postage plus a
small fee for the envelope itself.
Stamped Envelopes
It is proposed to increase fees for some stamped envelopes and
decrease fees for others. In addition, the fee structure has been
simplified: except for the hologram and banded stamped envelopes, all
stamped envelopes are grouped together by size and whether they are
plain or printed.
ZIP Coding of Mailing Lists
Fees are proposed to increase from $60.00 to $70.00 per 1,000
addresses or fraction thereof.

B. Summary of Domestic Mail Manual (DMM) Changes

The following are proposed changes organized by DMM module. They
are intended as an overview only and should not be viewed by commenters
as defining every proposed revision.
A (Addressing)
A060.5.3 is amended to eliminate the option to pay postage for
excess or undeliverable detached address labels (DALs) or items being
returned at the single-piece Standard Mail (A) rates. Postage for
excess or undeliverable DALs or items being returned is computed at the
applicable single-piece rate (First-Class Mail, Priority Mail, or
Standard Mail (B)) for the combined weight of the DAL and the
accompanying item, regardless of whether both are being returned.
C (Characteristics and Content)
References to single-piece Standard Mail (A) are deleted
throughout. C050 is revised to add ``Nonmachinable'' to the title of
5.0 and 6.0 (Irregular and Outside Parcels). C100.4.0 is revised to
include keys and identification devices as items that may be considered
nonstandard mail. C600.1 is amended to allow Parcel Post mailings to
include pieces measuring over 108 inches, but not exceeding 130 inches
in combined length and girth, if the number of such pieces does not
exceed 10% of each mailing, and a rate is paid equal to that for a 70-
pound parcel for the zone to which the parcel is addressed. C600.1 also
is amended to require Parcel Post pieces that weigh less than 15 pounds
but measure more than 84 inches in combined length and girth to pay a
rate equal to that of a 15-pound parcel for the zone to which the
parcel is addressed. C600.2 is amended to delete the nonstandard
surcharge criteria that formerly applied to single-piece Standard Mail
(A). C810 is amended to provide new maximum weights for automation
``heavy'' letters. A new C850 is added to provide standards for
barcodes on parcels.
D (Deposit, Collection, and Delivery)
D010.1 is amended to exclude Parcel Post pieces mailed at the DDU
and DSCF rates, or claiming the Origin BMC discount, from obtaining
pickup service. D042.1.7 is amended to reflect the operational
conditions in plants that employ an automated delivery receipt system
for processing accountable mail. D600.2 is amended to remove the
sentence that allowed single-piece Standard Mail (A) bearing adhesive
stamps to be placed in collection boxes.
E (Eligibility)
E060 is revised to remove single-piece Standard Mail (A) as a
permissible rate for the return of items under penalty merchandise
return service. E110 is revised to delete references to Presorted
Priority Mail. E120 is revised to remove references to Presorted
Priority Mail, to add information on rates and fees applicable to keys
and identification devices, to add information on hazardous material
surcharges, and to make minor organizational changes. E130 is revised
to add information on rates and fees applicable to keys and
identification devices, and surcharges for nonstandard sizes and for
hazardous material. E200 is revised to provide for separate 5-digit and
3-digit rates for Regular, Nonprofit, Classroom, and In-County
subclasses, and to show that the applicable 3-digit rates will apply to
both unique and nonunique 3-digit ZIP Code areas. E500 is revised to
add information on hazardous material surcharges. E600 is revised to
delete references to single-piece Standard Mail (A), and to change the
name ``nonautomation presort'' to ``Presorted'' or ``Presorted
Standard.'' E612 is revised to change the weight breakpoints for the
Standard Mail (A) minimum per-piece rates, specify that delivery
confirmation service may not be used with Standard Mail (A), and
require Standard Mail (A) mailed at a Standard Mail (B) rate to show
the applicable Standard Mail (B) marking. E620 and E630 are reorganized
so that E620 contains standards for Standard Mail (A) and E630 contains
standards for Standard Mail (B). E620 is revised to add new minimum
volume requirements for Presorted Standard mailings and add provisions
for the new residual shape surcharge and the hazardous material
surcharges. E630 is revised to add provisions for new DSCF and DDU
rates and new OBMC, BMC Presort discounts, the oversized parcel
provisions, and balloon rate provisions. E630 is revised to add
provisions for a barcoded discount and delivery confirmation for all
Standard Mail (B). E630 is revised to add provisions for hazardous
material surcharges for Parcel Post and Library Mail and to revise
marking requirements for Parcel Post drop shipments, Bound Printed
Matter, and Special Standard Mail. E640 is revised to add hazardous
material surcharges for Standard Mail (A). E652 is revised to add
provisions for DSCF and DDU Parcel Post rates.
F (Forwarding and Related Services)
F010 revises forwarding and related services for Periodicals and
for Standard Mail (A) to show that return postage is subject to the
First-Class or Priority Mail rates based on weight, except for
machinable Standard Mail (A) parcels returned under Bulk Parcel Return
Service (BPRS). F020 is revised to remove references to single-piece
Standard Mail (A).
L (Labeling Lists)
Section L100, including labeling list L102, ADCs--Presorted
Priority Mail, is deleted. New labeling list L605, BMCs--Nonmachinable
Parcel Post, is added.
M (Mail Preparation and Sortation)
M011 is revised to amend the definition of a mailing. M012 is
revised to change marking requirements for

[[Page 12872]]

Standard Mail (A) and (B). In M032, Exhibit 1.3 is revised to show
headings for new Periodicals rate levels and for new Parcel Post rates.
M041 is revised to reflect new Standard Mail (B) rate requirements.
M045 is revised to add new Standard Mail (B) preparation requirements.
M072 is amended for clarity. M073 is revised to add information about
combining Standard Mail (A) and Standard Mail (B) parcels in mailings
prepared under new Parcel Post rate preparation requirements. M120 is
revised to delete the sections on Presorted Priority Mail. M200 is
revised to require preparation of an SCF level of sack. M600 is revised
to change ``nonautomation presort'' to ``Presorted,'' to revise
references to E620 and E630, and to revise marking requirements. M810
is reorganized and revised to add new rate categories for Periodicals
and to make the 5-digit/scheme sortation level optional for Periodicals
automation letters. M820 is revised to make the SCF sack a required
level of presort for Periodicals automation flats.
P (Postage and Payment Methods)
P011 is revised to delete references to single-piece Standard Mail
(A). P012 revises standardized documentation for Periodicals to add
separate 5-digit and 3-digit rates for both automation and
nonautomation and to add new rate abbreviations for nonautomation 5-
digit and 3-digit rates. P013 is revised to reflect payment for keys
and identification devices at First-Class Mail and Priority Mail rates
plus a $0.30 fee instead of single-piece Standard Mail (A) rates, to
delete sections concerning computation of single-piece Standard Mail
(A) rates, and to revise the breakpoints for Standard Mail (A) rates.
P014 is revised to delete references to single-piece Standard Mail (A)
and to indicate that a full refund may be given for delivery
confirmation if no service is provided. P030.5.4 is revised to delete a
reference to single-piece Standard Mail (A). P600 is revised to
establish postage payment methods for Standard Mail (B) containing a
combination of discounts, to delete information on payment and use of
``SNGLP'' marking for single-piece Standard Mail (A), and to clarify
that for mailings of identical weight, Standard Mail (A) postage may be
affixed to all pieces in the mailing at the lowest rate in the mailing
job. P710 is revised to require manifest information concerning limits
on oversize Parcel Post. P750 is revised to include instructions on the
new Parcel Post DSCF and DDU rates. P760 is revised to change
``nonautomation'' to ``Presorted'' for Standard Mail (A) and to delete
references to single-piece Standard Mail (A).
R (Rates and Fees)
The entire module is revised to reflect new rates and fees.
S (Special Services)
S010 is revised to reflect claims for the new bulk insurance
service. S070 is revised to clarify applicability of Priority Mail Drop
Shipment. S911 is revised to reflect changes to indemnity coverage for
registered mail and to include delivery confirmation as an authorized
additional service. S913 is revised to eliminate references to single-
piece Standard Mail (A), to provide clarification to matter eligible
for insurance, to include rules for the new bulk insurance service, and
to include delivery confirmation as an authorized additional service.
S915 is amended to reflect limited use of return receipt with delivery
confirmation service. S916 is amended to reflect limited use of
restricted delivery together with delivery confirmation service. S917
is amended to delete availability of return receipt for merchandise
with single-piece Standard Mail (A). S918 is added to provide rules for
the proposed new delivery confirmation service. S921 is amended to
delete availability of COD with single-piece Standard Mail (A) and to
reflect limited use of COD with delivery confirmation service. S922 is
revised to include requirements for new QBRM service, to require all
BRM bearing barcodes to meet the requirements of C810 and C840, and to
replace current BRM standards relative to reflectance requirements,
paper weight, and self-mailers with current mailpiece design
requirements in C810 and C830. S923 is revised to eliminate the return
of merchandise return service pieces at single-piece Standard Mail (A)
rates, to prescribe new rates of return and corresponding markings, and
to reflect new standards concerning registered mail used with that
service. S924 is revised to eliminate references to single-piece
Standard Mail (A). S925 is added to provide rules for the proposed new
prepaid reply mail classification. S930 is amended to remove
availability of special handling service for single-piece Standard Mail
(A), to correct the rules to allow First-Class Mail and Priority Mail
to receive special handling, and to reflect availability of delivery
confirmation service with special handling for the applicable
subclasses.
Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on
the following proposed revisions of the Domestic Mail Manual,
incorporated by reference in the Code of Federal Regulations. See 39
CFR part 111.

List of Subjects in 39 CFR Part 111

Postal Service.

PART 111 [AMENDED]

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

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 5001.

2. Revise the following sections of the Domestic Mail Manual to
read as follows:

A ADDRESSING

A000 Basic Addressing

* * * * *

A060 Detached Address Labels (DALs)

* * * * *
5.0 POSTAGE
* * * * *

5.3 Returns

[Amend the first sentence of 5.3 by replacing ``Standard Mail'' with
``First-Class Mail'' to read as follows:]
Postage for excess or undeliverable DALs that are properly
endorsed, or items being returned, is computed at the applicable
single-piece rate (First-Class Mail, Priority Mail, or Standard Mail
(B)) for the combined weight of the DAL and the accompanying item,
regardless of whether both are being returned. * * *
* * * * *
C CHARACTERISTICS AND CONTENT

C000 General Information

C010 General Mailability Standards

1.0 MINIMUM AND MAXIMUM DIMENSIONS
* * * * *

1.6 Nonstandard Surcharge

[Amend 1.6 by removing ``C600'' and ``Single-Piece Standard Mail'' to
read as follows:]
Because of address placement (orientation) under C100, a mailable
piece of First-Class Mail weighing 1 ounce or less can be subject to
the corresponding nonstandard surcharge.
* * * * *

C024 Other Restricted or Nonmailable Matter

* * * * *

[[Page 12873]]

12.0 ODD-SHAPED ITEMS IN ENVELOPES

12.1 Nonmailable

[Amend 12.1 by removing ``Standard Mail (A) rate'' to read as follows:]
Pens, bottle caps, and similar odd-shaped items are not acceptable
in letter-size envelopes at the single-piece First-Class Mail rate.
* * * * *

C022 Perishables

* * * * *
3.0 LIVE ANIMALS

3.1 Day-Old Poultry

[Amend 3.1f by adding ``or Priority Mail'' for clarity as follows:]
Day-old poultry vaccinated with Newcastle disease (live virus) is
nonmailable. Live day-old chickens, ducks, geese, partridges, pheasants
(mailable only from April through August), guinea fowl, quail, and
turkeys are acceptable in the mail only if:
* * * * *
f. The shipment bears special handling postage in addition to
regular postage, unless sent at the First-Class Mail or Priority Mail
rate.
* * * * *

C023 Hazardous Matter

* * * * *

12.0 Hazardous Material Surcharge

Mailable hazardous material described and prepared under C023.10 is
subject to a Hazardous Medical Material surcharge if mailed at the
Priority Mail, First-Class Mail (other than cards), Standard Mail (A),
Parcel Post, or Library Mail rates. Mailable hazardous material mailed
under C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge if mailed at
the Priority Mail, First-Class Mail (other than cards), Standard Mail
(A), Parcel Post, or Library Rate. Both surcharges may apply to some
material.
* * * * *

C050 Mail Processing Categories

* * * * *
[Amend 5.0 to add ``Nonmachinable'' to the title as follows:]
5.0 IRREGULAR PARCEL (NONMACHINABLE)
* * * * *
[Amend 6.0 to add ``Nonmachinable'' to the title as follows:]
6.0 OUTSIDE PARCEL (NONMACHINABLE)
* * * * *

C100 First-Class Mail

* * * * *
4.0 NONSTANDARD MAIL
[Revise 4.0 to include keys and identification devices as items subject
to the nonstandard classification as follows:]
Except for Priority Mail, any piece of First-Class Mail (including
keys or identification devices) weighing 1 ounce or less and not
claimed at a card rate is nonstandard and subject to the applicable
surcharge if its thickness exceeds 1/4 inch or, if based on the
placement (orientation) of the address, its length exceeds 11-1/2
inches, its height exceeds 6-1/8 inches, or its aspect ratio (length
divided by height) is less than 1.3 or more than 2.5.
* * * * *

C600 Standard Mail

1.0 DIMENSIONS

1.1 Standard Mail (A)

[Amend 1.1b to read as follows:]
These dimensional standards apply to Standard Mail (A):
* * * * *
b. Presorted (3/5 and basic rate) Regular and Nonprofit Standard
Mail (A) are subject only to the basic mailability standards in C010.
* * * * *

1.2 Standard Mail (B)

[Amend and renumber 1.2 as follows to specify a 10% limit on oversize
Parcel Post, and add a Parcel Post balloon rate:]
These dimensional standards apply to Standard Mail (B):
a. No piece may weigh more than 70 pounds, except matter at Bound
Printed Matter rates may not weigh more than 15 pounds.
b. Except for Parcel Post under 1.2c, the combined length and girth
of a piece (i.e., the length of its longest side plus the distance
around its thickest part) may not exceed 108 inches.
c. Parcel Post pieces exceeding 108 inches in combined length and
girth, but no greater than 130 inches in combined length and girth, are
mailable provided that they constitute not more than 10% of the total
number of Parcel Post pieces entered in a single mailing or included on
an approved daily manifest prepared for mailings that originate at a
single mailing location. The 10% limitation is applicable to all Parcel
Post mailings regardless of mailing size or acceptance location. Such
oversized Parcel Post pieces must be paid at a rate equal to that of a
70 pound parcel for the zone to which the parcel is addressed.
d. Parcel Post pieces exceeding 84 inches in combined length and
girth, but not exceeding 108 inches in combined length and girth, and
weighing less than 15 pounds are mailable at a rate equal to that of a
15-pound parcel for the zone to which the parcel is addressed.
e. Two or more packages may be mailed as a single parcel, if they
are about the same size or shape or if they are parts of one article,
if they are securely wrapped or fastened together, and if they do not
together exceed the weight or size limits.
f. Lower size or weight standards apply to mail claimed at certain
rates, addressed to certain APOs and FPOs, or sent by the Department of
State to U.S. government personnel abroad.
g. Pieces might be subject to minimum weight or dimensions based on
the standards for specific rates.
[Delete current 2.1, renumber current 2.2 as 2.0 and revise to read as
follows:]
2.0 NONMACHINABLE SURCHARGE
Items described in E630 and mailed at the inter-BMC/ASF Parcel Post
rates are subject to a nonmachinable surcharge unless the applicable
special handling fee is paid.
* * * * *

C800 Automation-Compatible Mail

* * * * *

C810 Letters and Cards

* * * * *
2.0 DIMENSIONS
* * * * *

2.3 Maximum Weight

[Amend 2.3c through 2.3f to amend the maximum ounce weights for heavy
letters to read as follows:]
Maximum weight limits are as follows:
* * * * *
c. 3.2873 ounces: automation Nonprofit Standard Mail heavy letters,
subject to 7.5.
d. 3.2906 ounces: automation Enhanced Carrier Route heavy letters,
subject to 7.5.
e. 3.2914 ounces: automation Nonprofit Enhanced Carrier Route heavy
letters, subject to 7.5.
f. 3.2985 ounces: automation First-Class Mail, automation
Periodicals, and automation Regular Standard Mail heavy letters,
subject to 7.5.
* * * * *
[Add new C850 to provide parcel barcode requirements as follows:]

[[Page 12874]]

C850 Standard Mail (B) Barcode Standards

1.0 PARCEL BARCODE CHARACTERISTICS

1.1 Basic Standards

Every addressed piece eligible for the Standard Mail (B) barcode
discount described in E630 must bear the correct 6-digit barcode (a 5-
digit ZIP Code and a 1-digit verifier character) in an Interleaved 2 of
5, Code 39, or Code 128 format. Technical specifications for these
three barcode formats appear in Uniform Symbology Specification (USS)
documents USS-I2/5, USS-39, and USS-128, respectively, available from
Automatic Identification Manufacturers (AIM), Material Handling
Institute, Inc., 1326 Freeport Rd., Pittsburgh, PA 15238-3131. Only one
6-digit barcode ending in a ``9'' character may appear on the
mailpiece. The barcode must be located as specified in 1.6. No printing
may appear in an area 1/8 inch above and below the barcode regardless
of location. A minimum clear zone equal to 10 times the average
measured narrow element (bar or space) width must be maintained on
either side of the barcode.

1.2 Dimensions

The preferred range of widths of narrow bars and spaces is 0.015
inch to 0.017 inch. The width of the narrow bars or spaces must be no
less than 0.013 inch and no greater than 0.021 inch.

1.3 Verifier

The verifier character must be the last digit of the 6-digit
barcode. The correct verifier digit is always 9. The verifier appears
only as part of the barcode and is not printed as part of the human-
readable ZIP Code.

1.4 Reflectance

When measured in the red spectral range between 630 nanometers and
675 nanometers, the minimum white bar (space) reflectance (Rs) must be
greater than 50%, and the maximum bar reflectance (Rb) must be less
than 25%. The minimum print reflectance difference (Rs-Rb) is 40%. The
measurements must be made using a USPS-specified reflectance meter or
barcode verifier.

1.5 Barcode Quality

At least 70% of the barcodes must measure American National
Standards Institute (ANSI) grade A or B and none of the remaining
portion can measure lower than ANSI grade C. Information concerning
ANSI guidelines X3.182-1990 may be obtained from the American Standards
Institute, Inc., 1430 Broadway, New York, NY 10018-3308.

1.6 Address and Barcode Placement

The address and barcode must be on the mailpiece side with the
largest surface area, except that the address and barcode must be on
the top surface of the mailpiece when its shape requires specific
orientation for stability during automated processing. The delivery
address and/or the barcode may be printed on an attachment or on an
enclosure in a window envelope, subject to the reflectance standards in
1.4.

1.7 Numeric Barcode

In addition to the ZIP Code, or ZIP+4 code included in the delivery
address, human-readable characters representing the numeric equivalent
of the barcode (omitting the verifier character) must be printed near
the barcode but outside the barcode clear zone. These numeric
characters must be preceded by the word ``ZIP.''

D DEPOSIT, COLLECTION, AND DELIVERY

D000 Basic Information

D010 Pickup Service

1.0 BASIC STANDARDS

1.1 Availability

[Amend 1.1b to delete the term ``single-piece rate'' to read as
follows:]
Subject to the standards in D010, pickup service is available from
designated post offices for:
* * * * *
b. Priority Mail.
* * * * *

1.2 Not Available

[Amend 1.2c to include all destination entry rate pieces as follows:]
Pickup service is not available for pieces:
* * * * *
c. Claimed at the Parcel Post DBMC, DSCF, or DDU destination entry
rates, or claiming the Parcel Post Origin BMC discount.
* * * * *

D042 Conditions of Delivery

1.0 BASIC STANDARDS
* * * * *

1.7 Express Mail and Accountable Mail

[Amend 1.7a and b to reflect the operational conditions in plants that
employ automated delivery receipt system as follows:]
The following specific conditions also apply to the delivery of
Express Mail and accountable mail (registered, certified, insured for
more than $50, or COD, as well as mail for which a return receipt or a
return receipt for merchandise is requested or for which the sender has
specified restricted delivery):
a. The recipient (addressee or addressee's representative) may
obtain the sender's name and address and may look at the mailpiece
before accepting delivery and endorsing the delivery receipt.
b. The mailpiece may not be opened or given to the recipient before
the recipient signs and legibly prints his or her name on the delivery
receipt (and return receipt, if applicable) and returns the receipt(s)
to the USPS employee; or, for organizations such as the IRS, which
receive large numbers of return receipts, before the recipient signs a
manifest listing all the Express Mail and accountable mailpieces being
delivered.
* * * * *

D600 Standard Mail

* * * * *
2.0 MAIL DEPOSIT
[Amend the heading and contents of 2.1 to read as follows:]

2.1 Single-Piece Standard Mail (B) Rates

Single-piece rate Standard Mail (B) must be deposited at a time and
place specified by the mailing post office postmaster. Metered mail
must be deposited in locations under the jurisdiction of the licensing
post office, except as permitted in D072. Permit imprint mail must be
presented at the post office under P040 or P700. Precanceled stamp mail
must be presented at the post office under P023.

E ELIGIBILITY

E000 Special Eligibility Standards

* * * * *

E060 Official Mail (Penalty)

* * * * *
12.0 PENALTY MERCHANDISE RETURN SERVICE

12.1 Description

[Amend 12.1 by inserting ``(B)'' and by removing ``Single Piece
Standard Mail'' to read as follows:]
Merchandise return service allows a merchandise return permit
holder to authorize individuals and organizations to send single-piece
First-Class Mail (including Priority Mail) and single-piece Standard
Mail (B) (Parcel Post, Special Standard Mail, and Bound Printed Matter)
to the permit holder.

[[Page 12875]]

The permit holder pays the return postage and fees.
* * * * *

E100 First-Class Mail

E110 Basic Standards

* * * * *
4.0 FEES

4.1 Presort Mailing

[Amend the first sentence of 4.1 to delete the reference to Presorted
Priority Mail to read as follows:]
A First-Class Mail presort mailing fee must be paid once each 12-
month period at each office of mailing by any person or organization
entering mailings at automation or Presorted First-Class Mail rates.
Payment of one fee allows a mailer to enter mail at all those rates.
Persons or organizations paying this fee may enter mail of their
clients as well as their own mail. The fee may be paid in advance only
for the next year and only during the last 30 days of the current
service period. The fee charged is that which is in effect on the date
of payment.
* * * * *

E120 Priority Mail

1.0 BASIC STANDARDS
* * * * *
[Delete current 1.4, renumber current 2.2 as new 1.4 to read as
follows:]

1.4 Marking

The marking ``Priority'' or ``Priority Mail'' must be placed
prominently on the address side of each piece of Priority Mail.
[Amend 2.0 to read as follows:]
2.0 RATES

2.1 Application

Priority Mail rates apply to pieces meeting the standards in 1.0.

2.2 Flat Rate Envelope

Any amount of material that can be mailed in the special flat rate
envelope available from the USPS is subject to the 2-pound Priority
Mail rate, regardless of the weight of the material placed in the
envelope.

2.3 Balloon Rate

Items weighing less than 15 pounds but measuring more than 84
inches in combined length and girth are charged a minimum rate equal to
that for a 15-pound parcel for the zone to which it is addressed.

2.4 Keys and Identification Devices

Keys and identification devices (identification cards or uncovered
identification tags) that weigh more than 11 ounces but no more than 2
pounds are returned at the 2-pound Priority Mail rate plus a $0.30 fee
if they bear, contain, or have securely attached the name and complete
address of a person, organization, or concern, with instructions to
return the piece to that address and a statement guaranteeing payment
of postage due on delivery.

[Delete current 3.0 pertaining to Presorted Priority Mail. Insert new
3.0 as follows:]
3.0 HAZARDOUS MATERIAL SURCHARGES

3.1 Hazardous Medical Material

Mailable medical material described in and prepared under C023.10
(all Department of Transportation (DOT) division 6.2 material mailable
under C023.10) are subject to the hazardous medical material surcharge.

3.2 Other Hazardous Material

Mailable hazardous material described in C023.1.0 through 6.0 and
in C023.9.0 and prepared under C021 and C023 are subject to the other
hazardous material surcharge. This includes all DOT division 1-5,
division 6.1, and class 7-9 material mailable under C023 except
division 6.2 material mailable under C023.10.

3.3 Application of Surcharges

Both surcharges may apply to some material.

E130 Nonautomation Rates

1.0 BASIC STANDARDS
[Delete 1.3.]
2.0 SINGLE-PIECE RATE
[Revise 2.1, renumber 2.2 as 2.5, and insert new 2.2 through 2.4 to
read as follows:]

2.1 Rate Application

The single-piece rates for First-Class Mail are applied as follows:
a. The card rate applies to a card meeting the applicable standards
in C100 that is not eligible for or claimed at the Presorted rate, an
automation rate, or a qualified business reply mail (QBRM) or prepaid
business reply mail (PRM) rate.
b. The letter rate applies to any other (letter, flat, and parcel)
First-Class Mail weighing 11 ounces or less that is not eligible for
and claimed at the card rate, the Presorted rate, an automation rate, a
qualified business reply mail (QBRM) or prepaid business reply mail
(PRM) rate, or required to be paid at a rate for keys and
identification devices.
2.2 Prepaid Reply Mail (PRM) Rates The single-piece rates for PRM
First-Class Mail are applied as follows:
a. The PRM rate for cards applies to a card meeting the applicable
standards in C100 and the applicable standards in S925, including
automation compatibility and barcoding under C810 and C840.
b. the PRM rate for letters applies to a letter meeting the
applicable standards in S925, including automation compatibility and
barcoding under C810 and C840, that is not eligible for and claimed at
the PRM rate for cards.
c. Fees described in S925 and R900 also apply

2.3 Qualified Business Reply Mail (QBRM) Rates

The single-piece rates for QBRM First-Class Mail are applied as
follows:
a. The QBRM rate for cards applies to a card meeting the applicable
standards in C100 and the applicable standards in S922, including
automation compatibility and barcoding under C810 and C840.
b. the PRM rate for letters applies to a letter meeting the
applicable standards in S922, including automation compatibility and
barcoding under C810 and C840, that is not eligible for and claimed at
the QBRM rate for cards.
c. Fees described in S922 and R900 also apply.

2.4 Keys and Identification Devices

Keys and identification devices (identification cards or uncovered
identification tags) that weigh no more than 11 ounces are mailed at
the applicable single-piece letter rate, plus a $0.30 fee, and if
applicable, the nonstandard surcharge. The keys and identification
devices must bear, contain, or have securely attached the name and
complete address of a person, organization, or concern, with
instructions to return the piece to that address and a statement
guaranteeing payment of postage due on delivery.
* * * * *
[Insert new 4.0 to read as follows:]
4.0 SURCHARGES

4.1 Nonstandard Surcharge

Single-piece (including keys and identification devices) and
Presorted First-Class Mail is subject to a nonstandard surcharge if it
is not mailed at the card rate, weighs 1 ounce or less, and meets the
definition of nonstandard mail in C100.

4.2 Hazardous Material Surcharges

a. Hazardous Medical Material. Single-piece and Presorted First-
Class

[[Page 12876]]

Mail is subject to the hazardous medical material surcharge if it is
not mailed at the card rate, and if it consists of mailable medical
material described in and prepared under C023.10 (all Department of
Transportation (DOT) division 6.2 materials mailable under C023.10).
b. Other Hazardous Material. Single-piece or Presorted First-Class
Mail is subject to the other hazardous material surcharge if it is not
mailed at the card rate, and if it consists of mailable hazardous
material described in C023.1.0 through 6.0 and in C023.9.0 and prepared
under C021 and C023. This includes all DOT hazard class 1-5, division
6.1, and class 7-9 material mailable under C023 except division 6.2
material mailable under C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.
* * * * *

E200 Periodicals

E210 Basic Standards

E211 All Periodicals

* * * * *
14.0 BASIC RATE ELIGIBILITY
* * * * *

14.4 Copies Mailed by Public

[Amend 14.4 to read as follows:]
The applicable single-piece First-Class, Priority, or Standard Mail
(B) rate is charged on copies of publications mailed by the general
public (i.e., other than publishers or registered news agents) and on
copies returned to publishers or news agents.
* * * * *

E230 Nonautomation Rates

1.0 BASIC INFORMATION:
* * * * *

1.3 ZIP Code Accuracy

[In the first sentence, change ``3/5'' to ``5-digit, 3-digit,'' to read
as follows:]
All 5-digit ZIP Codes in addresses on pieces claimed at the 5-
digit, 3-digit, or basic rates must be verified and corrected within 12
months before the mailing date by a USPS-approved method. * * *
* * * * *
[Replace current 3.0 through 5.0 with new 3.0 through 5.0 to read as
follows:]
3.0 5-DIGIT RATES
Subject to M200, 5-digit rates apply to:
a. Letter-size pieces in 5-digit packages of six or more pieces
each, placed in 5-digit trays.
b. Flat-size pieces in 5-digit packages of six or more pieces each,
placed in 5-digit sacks.
4.0 3-DIGIT RATES
Subject to M200, 3-digit rates apply to:
a. Letter-size pieces in 5-digit and 3-digit packages of six or
more pieces each, placed in 3-digit trays.
b. Flat-size pieces in 5-digit and 3-digit packages of six or more
pieces each, placed in 3-digit sacks.
5.0 BASIC RATES
Basic rates apply to pieces prepared under M200 that are not
claimed at carrier route, 5-digit, or 3-digit rates.
* * * * *
7.0 COMBINING MULTIPLE PUBLICATIONS OR EDITIONS
* * * * *

7.4 Documentation Elements

[Amend the first sentence to read as follows:]
Presort documentation required under P012 also must show the total
number of addressed pieces and copies of each publication or edition
mailed to each carrier route, 5-digit, and 3-digit destination. * * *
* * * * *

E240 Automation Rates

* * * * *
2.0 RATE APPLICATION
[Replace current 2.1 through 2.3 with new 2.1 through 2.3 to read as
follows:]

2.1 5-Digit Rates

a. Letters. 5-digit rates apply to groups of 150 or more pieces to
the same 5-digit or 5-digit scheme placed in a 5-digit or 5-digit
scheme tray or trays prepared under M810. (Preparation to qualify for
the 5-digit rate is optional, and if performed, need not be done for
all 5-digit or 5-digit scheme destinations.)
b. Flats. 5-digit rates apply to pieces in 5-digit packages of six
or more pieces each, prepared under M820 or M045.

2.2 3-Digit Rates

a. Letters. 3-digit rates apply to groups of 150 or more pieces to
the same 3-digit or 3-digit scheme placed in a 3-digit/scheme tray or
trays under M810.
b. Flats. 3-digit rates apply to pieces in 3-digit packages of 6 or
more pieces each, prepared under M820 or M045.

2.3 Basic Rates

a. Letters. Basic rates apply to pieces prepared under M810 that
are not claimed at carrier route, 5-digit, or 3-digit rates.
b. Flats. Basic rates apply to pieces prepared under M820 or M045
that are not claimed at 5-digit, or 3-digit rates.
* * * * *

E500 Express Mail

[Renumber current 3.0 through 7.0 as 4.0 through 8.0, respectively.
Insert new 3.0 to read as follows:]
3.0 HAZARDOUS MATERIAL SURCHARGES

3.1 Hazardous Medical Material

Mailable medical material described in and prepared under C023.10
(all Department of Transportation (DOT) division 6.2 material mailable
under C023.10) are subject to the hazardous medical material surcharge.

3.2 Other Hazardous Material

Mailable hazardous material described in C023.1.0 through 6.0 and
in C023.9.0 and prepared under C021 and C023 are subject to the other
hazardous material surcharge. This includes all DOT division 1-5,
division 6.1, and class 7-9 material mailable under C023 except
division 6.2 material mailable under C023.10.

3.3 Application of Surcharges

Both surcharges may apply to some material.
* * * * *

E600 Standard Mail

E610 Basic Standards

E611 All Standard Mail

1.0 BASIC INFORMATION
* * * * *

1.8 Documentation

[Amend the reference to single-piece rate mail to specify single-piece
Standard Mail (B) as follows:]
A postage statement, completed and signed by the mailer, using the
correct USPS form or an approved facsimile, must be submitted with each
mailing except for single-piece rate Standard Mail (B) mailings in
which the correct postage is affixed to each piece. Additional
supporting documentation may be required by the standards for the rate
claimed or postage payment method used.

E612 Additional Standards for Standard Mail (A)

* * * * *
4.0 RATES

4.1 General Information

[Revise the section numbers and the names of nonautomation rates, and

[[Page 12877]]

remove information about special services to read as follows:]
All Standard Mail (A) rates are bulk rates (sometimes referred to
as presort rates). Bulk rates apply to mailings meeting the basic
standards in E611 and the corresponding standards for Enhanced Carrier
Route, automation, Presorted, and destination entry in E620, E640, and
E650 as appropriate for the rate claimed. Nonprofit rates may be used
only by organizations authorized by the USPS under E670. Not all
processing categories qualify for every bulk rate.

4.2 Minimum Per-Piece Rates

[In the first sentence, change ``nonautomation'' to ``Presorted'' and
amend the weight breakpoints for the minimum per-piece rates as
follows:]
The minimum per-piece rates (i.e., the minimum postage that must be
paid for each piece) apply to Enhanced Carrier Route rate pieces
weighing no more than 0.2057 pound rounded (3.2906 ounces rounded);
Regular Presorted and automation rate pieces weighing no more than
0.2062 pound rounded (3.2985 ounces rounded); Nonprofit Enhanced
Carrier Route rate pieces weighing no more than 0.2057 pound rounded
(3.2914 ounces rounded); and Nonprofit Presorted and automation rate
pieces weighing no more than 0.2055 pound rounded (3.2873 ounces
rounded). * * *
* * * * *

4.6 Exception

[Amend 4.6 to read as follows:]
When the postage computed at the bulk Standard Mail (A) rates is
higher than a Standard Mail (B) rate for which the matter and the
mailing could qualify except for its weight, the Standard Mail (B) rate
may be paid without adding needless weight. When the Standard Mail (B)
rate is paid, the pieces must bear the rate marking appropriate for the
Standard Mail (B) rate at which postage is paid. All other standards
for bulk Standard Mail (A) apply, including mail preparation.
* * * * *

4.9 Preparation

[Amend 4.9c to read as follows:]
Each bulk rate mailing is subject to these general standards:
* * * * *
c. The same mailing may not contain both automation and
nonautomation rate pieces, except under E620.1.2.
* * * * *
[Add new 4.10 as follows:]

4.10 Special Services

Bulk rate Standard Mail (A) may not use certified, collect on
delivery (COD), insurance, registered, return receipt, return receipt
for merchandise, special handling, or delivery confirmation services.
* * * * *
[Revise the title of E620. Delete current 1.0. Move current E620.2.0
through 5.7 into E630. Renumber current E630.1.0 through E630.2.9 as
E620.1.0 through E620.2.9, add new E620.1.5 and E620.16, add new
E620.2.10 and E620.2.11, and revise to read as follows:]

E620 Nonautomation Standard Mail (A) Rates

1.0 PRESORTED REGULAR AND NONPROFIT RATES

1.1 Basic Standards

All pieces in a Presorted Regular or Nonprofit Standard Mail (A)
mailing must:
a. Meet the basic standards for Standard Mail in E611 and E612.
b. Except as provided in 1.2, be part of a single mailing of at
least 200 pieces or 50 pounds of pieces qualifying for Presorted rate
Standard Mail (A). Regular and Nonprofit mailings must meet separate
minimum volumes.
c. Bear a delivery address that includes the correct ZIP Code or
ZIP+4 code, unless an alternative address format is used subject to
A040. Upgradable pieces are subject to additional standards in M610.
Pieces prepared with detached address labels are subject to additional
standards in A060.
d. Be marked, sorted, and documented as specified in M610.

1.2 Residual Volume Requirement

Pieces in an Enhanced Carrier Route rate mailing that has
separately met a 200 piece or 50 pound minimum quantity requirement may
be counted toward the minimum quantity requirement for a Presorted rate
mailing, provided that the Enhanced Carrier Route rate mailing and the
Presorted rate mailing are part of the same mailing job and are
reported on the same postage statement. Likewise, pieces in an
automation rate mailing that has separately met a 200 piece or 50 pound
minimum quantity requirement may be counted toward the minimum quantity
requirement for a Presorted rate mailing, provided that the automation
rate mailing and the Presorted Mailing are part of the same mailing job
and are reported on the same postage statement. Pieces mailed at
Presorted Standard Mail (A) rates must not be counted toward the
minimum volume requirements for an Enhanced Carrier Route rate or an
automation rate mailing.

1.3 ZIP Code Accuracy

All 5-digit ZIP Codes included in addresses on pieces claimed at
Presorted Regular and Nonprofit rates must be verified and corrected
within 12 months before the mailing date, using a USPS-approved method.
The mailer must certify that this standard has been met when the
corresponding mail is presented to the USPS. This standard applies to
each address individually, not to a specific list of mailing. An
address meeting this standard may be used in mailings at any other
rates to which the standard applies during the 12-month period after
its most recent update.

1.4 Presorted Rates

Presorted Regular or Nonprofit Standard Mail (3/5 and basic) rates
apply to Regular or Nonprofit Standard Mail letters, flats, and
machinable and irregular parcels weighing less than 16 ounces, that are
prepared under M610 or palletized under M045. Basic rates apply to
pieces that do not meet the standards for the 3/5 rates described
below. Basic rate and 3/5 rate pieces prepared as part of the same
mailing are subject to a single minimum volume standard. Pieces that do
not qualify for the 3/5 rate must be paid at the basic rate and
prepared accordingly. Pieces may qualify for the 3/5 rate if:
a. In quantities of 150 or more letter-size pieces for a single 3-
digit area, prepared in 5-digit or 3-digit packages of 10 or more
pieces each and placed in 5-digit or 3-digit trays.
b. In quantities of 150 or more upgradable letter-size pieces (as
defined in M610) for a single 3-digit area and placed in 5-digit or 3-
digit trays.
c. In a 5-digit or 3-digit package of 10 or more flat-size pieces
and placed in a 5-digit or 3-digit sack containing at least 125 pieces
or 15 pounds of pieces.
d. In a 5-digit or 3-digit package of 10 or more flat-size pieces
palletized under M045.
e. In a 5-digit, destination ASF (if required), or destination BMC
sack containing at least 10 pounds of machinable parcels. (The 3/5
rates are available only if all possible 5-digit sacks are prepared.)
f. On a 5-digit, destination ASF (if required), or destination BMC
pallet of machinable parcels. (The 3/5 rates are available only if all
possible 5-digit pallets are prepared.)

[[Page 12878]]

g. In a 5-digit or 3-digit sack of irregular parcels containing at
least 125 pieces or 15 pounds of pieces.

1.5 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT division 1-5, division 6.1, and class 7-9 material
mailable under C023 except division 6.2 material mailable under
C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.

1.6 Residual Shape (Parcel) Surcharge

Presorted Standard Mail that is prepared as a parcel, or is not
letter-size or flat-size as defined in C050, is subject to the residual
shape surcharge.
2.0 ENHANCED CARRIER ROUTE RATES

2.1 All Pieces

All pieces in an Enhanced Carrier Route Standard Mail mailing
(letters, flats, or irregular parcels, including merchandise samples
distributed with detached address labels) must:
a. Meet the basic standards for Standard Mail in E611 and E612
b. Be part of a single mailing of at least 200 pieces or 50 pounds
of pieces of Enhanced Carrier Route Standard Mail, except that
automation basic carrier route rate pieces are subject to a separate
200-piece/50-pound minimum volume standard and may not be included in
the same mailing as other Enhanced Carrier Route mail.
c. Be sorted to carrier routes, marked, and documented under M045
(if palletized) or M620.

2.2 Flats and Merchandise Samples

Enhanced Carrier Route rate mail may not be more than 11-3/4 inches
high, 14 inches long, or 3/4 inch thick. Merchandise samples with
detached address labels may exceed these dimensions if the labels meet
the standards in A060.

2.3 Preparation

Preparation to qualify for any of the Enhanced Carrier Route rates
is optional and need not be performed for all carrier routes in a 5-
digit area. An Enhanced Carrier Route mailing may include pieces at
basic, high-density, and saturation Enhanced Carrier Route rates.
Automation basic carrier route rate pieces must be prepared as a
separate mailing, subject to the eligibility standards in E640.

2.4 Carrier Route Information

Except for mailings prepared with a simplified address under A040,
carrier route codes must be applied to mailings using CASS-certified
software and the current USPS Carrier Route Information System (CRIS)
scheme, hard copy CRIS files, or another AIS product containing carrier
route information, subject to A930 and A950. Carrier route information
must be updated within 90 days before the mailing date.

2.5 Sequencing

Basic carrier route rate mail must be prepared either in carrier
walk sequence or in line-of-travel (LOT) sequence according to LOT
schemes prescribed by the USPS (see M050). High-density and saturation
rate mailings must be prepared in carrier walk sequence according to
schemes prescribed by the USPS.

2.6 Addressing

Saturation rate mail may be prepared with detached address labels,
subject to A060, or with an alternative addressing format, subject to
A040. High-density pieces must have a complete delivery address or an
address in occupant or exceptional format. Saturation pieces addressed
for delivery on a city route must have a complete delivery address or
an address in occupant or exceptional format, except that official mail
from certain government entities also may use the simplified format.
Saturation pieces for delivery on rural or highway contract routes, or
through general delivery or a post office box, must have a complete
delivery address or an alternative address format.

2.7 Density

High-density and saturation rate mailings are subject to these
density standards:
a. There is no minimum volume per 5-digit ZIP Code delivery area.
Pieces need not be sent to all carrier routes within a 5-digit delivery
area.
b. For the high-density rate, at least 125 pieces must be prepared
for each carrier route for which that discount is claimed, except that
fewer pieces may be prepared and the high-density rate may be claimed
for carrier routes of 124 or fewer possible deliveries if a piece is
addressed to every possible delivery on the route. Multiple pieces per
delivery address can count toward this density standard.
c. For the saturation rate, pieces must be addressed either to 90%
or more of the active residential addresses or to 75% or more of the
total number of active possible delivery addresses, whichever is less,
on each carrier route receiving this mail, except that mail addressed
in the simplified address format must meet the 100% coverage standard
in A040. Multiple pieces per delivery address do not count toward this
delivery standard. Sacks with fewer than 125 pieces and less than 15
pounds of pieces may be prepared to a carrier route when the saturation
rate is claimed for the contents and the applicable density standard is
met.

2.8 Basic Rates

Basic (nonautomation) carrier route rates apply to each piece that
is sorted under M620 into the corresponding qualifying groups:
a. Letter-size pieces in a full carrier route tray, or in a carrier
route package of 10 or more pieces placed in a 5-digit carrier routes
or 3-digit carrier routes tray.
b. Flat-size pieces in a carrier route package of 10 or more pieces
palletized under M045, or placed in a carrier route sack containing at
least 125 pieces or 15 pounds of pieces or in a 5-digit carrier routes
sack.
c. Irregular parcels in a carrier route sack containing 125 pieces
or 15 pounds of pieces, in a carrier route carton(s) of merchandise
samples prepared with detached address labels under A060 containing a
total of 125 pieces or 15 pounds of pieces, or in a 5-digit carrier
routes sack or carton. (Pieces must be in packages of 10 or more
irregular parcels each if packaging is required under M610.)

2.9 High-Density and Saturation

High-density and saturation rates apply to pieces qualified for the
basic rates that also meet the applicable addressing and density
standards in 2.6 and 2.7.

2.10 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT

[[Page 12879]]

division 1-5, division 6.1, and class 7-9 material mailable under C023
except division 6.2 material mailable under C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.

2.11 Residual Shape (Parcel) Surcharge

Enhanced Carrier Route mail that is prepared as a parcel, or is not
letter-size or flat-size as defined in C050, is subject to the residual
shape surcharge.

[Revise the title of E630 as follows:]

E630 Standard Mail (B)

[Delete current 630.1 through 630.2. Insert new 630.1 through 630.5.9
which combines former E620.2 through E620.5, with former E630.3 and
E630.4 to reorganize and separate standards for Standard Mail (A) from
those for Standard Mail (B) and to include new Standard Mail (B) rate
categories to read as follows:]
1.0 PARCEL POST

1.1 Basic Standards

Parcel Post is Standard Mail weighing 16 ounces or more that is not
mailed as Bound Printed Matter, Special Standard Mail, or Library Mail.
Any Standard Mail (B) matter may be mailed at Parcel Post rates,
subject to the basic standards in E611 and E613.

1.2 Enclosures

Parcel Post may contain any printed matter mailable as Standard
Mail (A), in addition to the enclosures and additions listed in E611.

1.3 Rate Eligibility

There are five Parcel Post rate categories: Intra-BMC, Inter-BMC,
destination bulk mail center (DBMC), destination sectional center
facility (DSCF), and destination delivery unit (DDU). Intra-BMC, Inter-
BMC, and DBMC Parcel Post rates are calculated based on the zone to
which the parcel is addressed and the weight of the parcel. DSCF and
DDU rates are calculated based on the weight of the parcel. Generally,
Intra-BMC rates apply to parcels mailed and delivered within the same
BMC service area and Inter-BMC rates apply to parcels mailed in one BMC
service area and delivered in a different BMC service area. Specific
standards for Inter-BMC and Intra-BMC rates and applicable discounts
are described below. Generally, to qualify for destination entry rates
(DBMC, DSCF, DDU) mailers must enter their parcels at the destination
BMC, SCF, or delivery unit postal facility that will process or deliver
the parcels (see additional requirements in E652). Additional
requirements for Parcel Post rates and discounts (other than
destination entry rates) are set forth below.
a. Intra-BMC rates apply to all Parcel Post originating and
destinating in the service area of the same BMC or ASF. Intra-BMC rates
also apply to Parcel Post originating and destinating in the same state
for Alaska and Hawaii and in the same territory for Puerto Rico. See
Exhibit 1.3.
b. Inter-BMC rates for machinable parcels apply to all Parcel Post
mail that weighs 35 pounds or less; is machinable; originates in the
service area of a BMC/ASF, or in Alaska, Hawaii, or Puerto Rico, and
destinates outside that area; and is not eligible for destination entry
rates.
c. Inter-BMC rates for nonmachinable Parcel Post include the
nonmachinable surcharge and apply to all inter-BMC/ASF Parcel Post mail
that weighs more than 35 pounds or otherwise is nonmachinable as
defined in 1.4; originates in the service area of a BMC/ASF, or in
Alaska, Hawaii, or Puerto Rico, and destinates outside that area; and
is not eligible for destination entry rates.
d. Parcel Post for which OBMC, BMC Presort, and/or barcoded
discounts are claimed, or are mailed at a destination entry rate (DBMC,
DSCF, DDU (E652)), must be part of a mailing of 50 or more Parcel Post
rate pieces.
e. The bulk mail center (BMC) Presort per-piece discount applies to
pieces of inter-BMC Parcel Post sorted to BMC destinations under L601
for machinable pieces and sorted to BMC and ASF destinations for
nonmachinable pieces under L605. To qualify, machinable pieces must be
placed in pallet boxes and nonmachinable pieces must be placed on
pallets under M041 and M045. The mail must be entered at a postal
facility that is not a BMC, and be part of a mailing containing 50 or
more Parcel Post rate pieces.
f. The origin bulk mail center (OBMC) per-piece discount applies to
pieces of inter-BMC Parcel Post sorted to BMC destinations under L601
for machinable pieces and sorted to BMC and ASF destinations for
nonmachinable pieces under L605. To qualify, machinable pieces must be
placed in pallet boxes and nonmachinable pieces must be placed on
pallets under M041 and M045. The mail must be entered at a BMC listed
in L601 and be part of a mailing containing 50 or more Parcel Post rate
pieces.
g. The barcoded discount applies to machinable pieces of Parcel
Post mail that bear a correct, readable 6-digit barcode under C850 for
the ZIP Code shown in the delivery address, are part of a mailing of 50
or more Parcel Post rate pieces, and are not mailed at the DSCF or DDU
rates, or entered at an ASF if claiming the DBMC rates.
h. Pieces exceeding 108 inches in combined length and girth, but
not greater than 130 inches in combined length and girth, are mailable
at the applicable 70-pound Parcel Post rate provided that such pieces
do not exceed 10% of all Parcel Post pieces in a mailing, or 10% of all
Parcel Post pieces listed on an approved daily manifest (P710) for a
single mailing operation. The 10% limitation is applicable to all
Parcel Post mailings regardless of mailing size or acceptance location.
i. Parcel Post pieces exceeding 84 inches (but not exceeding 108
inches) in combined length and girth and weighing less than 15 pounds
are subject to a rate equal to that of a 15-pound parcel for the zone
to which the parcel is addressed.

Exhibit 1.3 BMC/ASF Service Areas

[Insert former E620 Exhibit 2.4 as Exhibit 1.3:]

1.4 Nonmachinable Surcharge

The nonmachinable surcharge applies only to the items listed in
1.4a through 1.4i if mailed at the Inter-BMC/ASF Parcel Post rates and
no special handling fee is paid. The nonmachinable surcharge applies to
items within these categories:
a. A parcel more than 34 inches long, 17 inches wide, 17 inches
high, or weighing more than 35 pounds.
b. A parcel containing more than 24 ounces of liquid in glass
containers, or 1 gallon or more of liquid in metal or plastic
containers.
c. An insecurely wrapped or metal-banded parcel.
d. A can (paint, etc.), roll, or tube, or wooden or metal box.
e. A shrub or tree.
f. A perishable, such as eggs.
g. Books, printed matter, or business forms weighing more than 25
pounds.
h. A high-density parcel weighing more than 15 pounds and exerting
more than 60 pounds per-square-foot pressure on its smallest side.
i. A film case weighing more than 5 pounds or with strap-type
closures, except any film case the USPS authorizes to be entered as a
machinable parcel under C050 and to be identified by the words
``Machinable in United States Postal Service Equipment,'' permanently
attached as a nontransferable decal in the lower right corner of the
case.

[Add new section 1.5 as follows:]

[[Page 12880]]

1.5 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT division 1-5, division 6.1, and class 7-9 material
mailable under C023 except division 6.2 material mailable under
C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.

1.6 Fees

Parcel Post mail is subject to these fees, as applicable:
a. The fee for mailing at destination BMC (DBMC), destination
sectional center facility (DSCF), and destination delivery unit (DDU)
Parcel Post rates must be paid once each 12-month period at each post
office of mailing by or for any person or organization that mails at
the destination entry rates, except as provided otherwise for plant-
verified drop shipments. The fee may be paid in advance only for the
next year and only during the last 30 days of the current service
period. The fee charged is that which is in effect on the date of
payment (R 600).
b. The Parcel Post pickup fee must be paid every time pickup
service is provided, subject to the corresponding standards in D010.
2.0 BOUND PRINTED MATTER

2.1 Description and Rate Categories

[Renumber former E620.3.1 as 2.1 and revise to include new rate
categories as follows:]

Bound Printed Matter is Standard Mail weighing at least 1 pound but
not more than 15 pounds and meeting the standards in E611, E613, and
E630. Bound Printed Matter rates are based on zones and on the weight
of the piece. The rate categories are as follows:
a. Single-Piece Rate. The single-piece rate applies to Bound
Printed Matter not mailed at the presorted rate or carrier route rate.
b. Presorted Rate. The presorted rate applies to Bound Printed
Matter prepared in a mailing of at least 300 pieces, prepared and
presorted as specified in M045 and M630.
c. Carrier Route Rate. The carrier route rate applies to Bound
Printed Matter prepared in a mailing of at least 300 pieces presorted
to carrier routes, prepared and presorted as specified in M045 and
M630.

2.2 Characteristics

[Renumber former E620.3.2 as 2.2.]
* * * * *

2.3 Combining Pieces

[Renumber former E620.3.3 as 2.3.]
* * * * *

2.4 Enclosures

[Renumber former E620.3.4 as 2.4.]
* * * * *
[Add new 2.5 to specify barcoded discount standards as follows:]

2.5 Barcoded Discount

The barcoded discount applies to machinable pieces (C050) of
single-piece and presorted rate Bound Printed Matter bearing a correct,
readable 6-digit barcode under C850 for the ZIP Code shown in the
delivery address, that are part of a mailing of at least 50 Bound
Printed Matter pieces. The discount does not apply to carrier route
Bound Printed Matter.

[Renumber E630.3.1 as 2.6 and revise to delete references to E620 and
to add delivery confirmation service as follows:]

2.6 Preparation for Presorted Rates

Presorted Bound Printed Matter must meet the basic standards in
E630 and the applicable preparation standards in M630. Mailings may
contain nonidentical-weight pieces only if the correct postage is
affixed to each piece or if the RCSC serving the post office of mailing
has authorized payment of postage by permit imprint under P710, P720,
or P730 or M630.8. Each mailing must contain 300 or more pieces of
Bound Printed Matter. Insurance, special handling, delivery
confirmation, and COD services may be used, but selective use of these
services for individual parcels must be approved by the RCSC.

[Renumber former E630.3.2 as 2.7.]

2.7 Additional Standards for Carrier Route Rates

Carrier route Bound Printed Matter is subject to these additional
standards:
a. Each mailing must contain 300 or more pieces sorted under M630
into groups of at least 10 pieces, 20 pounds, or 1,000 cubic inches
each for the same carrier route, rural route, highway contract route,
post office box section, or general delivery unit.
b. Residual pieces (not sorted as described in 2.7a) do not count
toward the minimum specified in 2.7a, are ineligible for the carrier
route Bound Printed matter rates, and must have postage paid at the
appropriate presorted Bound Printed Matter rates. Residual pieces may
be included in a carrier route Bound Printer Matter rate mailing and be
endorsed ``Carrier Route Presort'' or ``CAR-RT SORT.'' The number of
residual pieces to any single 5-digit ZIP Code area may not exceed 5%
of the total qualifying carrier route pieces addressed to that 5-digit
area. Residual pieces must be separated from the pieces that qualify
for the carrier route rate and must be prepared under M630.
c. Subject to A930, the mailer must apply carrier route codes to
mailings using CASS-certified software and the current USPS Carrier
Route Information System (CRIS) scheme or another AIS product
containing carrier route information. The carrier route information
must be updated within 90 days before the mailing date.
3.0 SPECIAL STANDARD MAIL
[Renumber former E620.4.0 as 3.0.]

3.1 Qualification

[Renumber former E620.4.1 as 3.1 and add rate categories as follows:]
Special Standard Mail is Standard Mail matter meeting the standards
in E611, E613, and those below. Special Standard Mail rates are based
on the weight of the piece, without regard to zone. The rate categories
are as follows:
a. Single-Piece Rate. The single-piece rate applies to Special
Standard Mail not mailed at a 5-digit or BMC rate.
b. Presorted 5-Digit Rate. The 5-digit rate applies to Presorted
Special Standard Mail mailings of at least 500 pieces prepared and
presorted to 5-digit destination ZIP Codes as specified in M630 or M041
and M045.
c. Presorted BMC Rate. The BMC rate applies to Presorted Special
Standard Mail mailings of at least 500 pieces prepared and presorted to
destination bulk mail centers as specified in M630 or M041 and M045.

3.3 Qualified Items

[Renumber former E620.4.2 as 3.3.]
* * * * *

3.4 Loose Enclosures

[Renumber former E620.4.3 as 3.4.]
* * * * *

3.5 Enclosures in Books

[Renumber former E620.4.4 as 3.5.]
* * * * *

[[Page 12881]]

4.0 PRESORTED SPECIAL STANDARD MAIL
[Renumber former E630.4.0 as 620.4.0. Add new 4.7 as follows:]
* * * * *

4.7 Barcoded Discount

The barcoded discount applies to machinable pieces (C050) mailed at
single-piece rates and Presorted Special Standard Mail BMC rates that
bear a correct, readable 6-digit barcode under C850 for the ZIP Code
shown in the delivery address, and that are part of a mailing of at
least 50 pieces of Special Standard Mail. The discount does not apply
to pieces mailed at the Presorted Special Standard Mail 5-digit rates.
[Renumber former E620.5.0 and 5.1 as E630.5.0 and E630.5.1 as follows:]
5.0 LIBRARY MAIL

5.1 Qualification

Library Mail is Standard Mail matter that meets the standards in
E611, E613, and those below. Library Mail rates are based on the weight
of the piece, without regard to zone. The basic rate category applies
to all Library Mail.

[Renumber former E620.5.2 through E620.5.7 and add as E630.5.2 through
E630.5.7.]

[Add new 5.8 and 5.9 as follows:]

5.8 Barcoded Discount

The barcoded discount applies to machinable pieces (C050) of
Library Mail bearing a correct, readable 6-digit barcode under C850 for
the ZIP Code shown in the delivery address and that are part of a
mailing of at least 50 Library Mail pieces.

5.9 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT division 1-5, division 6.1, and class 7-9 material
mailable under C023 except division 6.2 material mailable under
C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.
6.0 BULK PARCEL POST
[Reserved]

[Revise the title of E640 and the first sentence of E640.1.1 to read as
follows:]

E640 Automation Standard Mail (A) Rates

1.0 REGULAR AND NONPROFIT RATES

1.1 All Pieces

All pieces in an automation rate Regular or Nonprofit Standard Mail
(A) mailing must: * * *
* * * * *
[Add new E640.1.5 to read as follows:]

1.5 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT division 1-5, division 6.1, and class 7-9 material
mailable under C023 except division 6.2 material mailable under
C023.10.
c. Application of Surcharge. Both surcharges may apply to some
material.
2.0 ENHANCED CARRIER ROUTE RATES
* * * * *
[Add new E640.2.6 to read as follows:]

2.6 Hazardous Material Surcharges

a. Hazardous Medical Material. Mailable medical material described
in and prepared under C023.10 (all Department of Transportation (DOT)
division 6.2 material mailable under C023.10) are subject to the
hazardous medical material surcharge.
b. Other Hazardous Material. Mailable hazardous material described
in C023.1.0 through 6.0 and in C023.9.0 and prepared under C021 and
C023 are subject to the other hazardous material surcharge. This
includes all DOT division 1-5, division 6.1, and class 7-9 material
mailable under C023 except division 6.2 material mailable under
C023.10.
c. Application of Surcharges. Both surcharges may apply to some
material.

E650 Destination Entry

* * * * *

E652 Parcel Post

1.0 BASIC STANDARDS
[Amend 1.1 through 1.4 to add information on DSCF and DDU destination
entry rates to read as follows:]

1.1 Definitions

Destination entry discounts apply to Parcel Post mailings prepared
as specified in M041, M045 and M630 and addressed for delivery within
the service area of a destination BMC (or auxiliary service facility),
sectional center facility (SCF), or delivery unit (DU) where they are
deposited by the mailer. For this standard, the following destination
facility definitions apply:
a. A destination bulk mail center (DBMC) includes all bulk mail
centers (BMCs) and auxiliary service facilities (ASFs) under L602, and
designated sectional center facilities (SCFs) under 4.0.
b. A destination sectional center facility (DSCF) includes all
processing and distribution centers or facilities under L005. Mail that
is prepared on pallets for 5-digit ZIP Codes listed in Exhibit 5.0 must
be entered at the BMC shown in the exhibit instead of at the SCF
serving the 5-digit ZIP Codes of the delivery addresses appearing on
mailpieces.
c. A destination delivery unit (DDU) is a facility that delivers to
the addresses appearing on the deposited pieces in a destination entry
rate Parcel Post mailing.

1.2 General

A destination entry mailing is a Parcel Post mailing that:
a. May be bedloaded, on pallets, or in pallet boxes, sacks, or
other authorized containers depending on the facility at which the
pieces are deposited and as specified in 2.0 through 5.0; and
b. Is not plant-loaded.

1.3 DBMC, DSCF, and DDU Rates

For DBMC, DSCF, or DDU rates, pieces must meet the applicable
standards in 1.0 through 5.0 and meet the following criteria:
a. Be part of a single mailing of 50 or more pieces, each eligible
for and claimed at a Parcel Post rate.
b. Be deposited at a destination BMC (DBMC) or auxiliary service
facility, or other equivalent facility; destination sectional center
(DSCF); or destination delivery unit (DDU) as applicable for the rate
claimed and as specified by the USPS.
c. Be addressed for delivery within the ZIP Code ranges that the
applicable entry facility serves.
d. For destination BMC (DBMC) rates, be part of a Parcel Post
mailing that is deposited at a BMC or ASF under L602, or other
designated facility under 4.0, addressed for delivery within the ZIP
Code range of that facility; and prepared in accordance with M041 and
M045 or M630.

[[Page 12882]]

e. For destination sectional center facility (DSCF) rates, be part
of a Parcel Post mailing deposited at a designated processing and
distribution center or facility under L005 (or at a BMC under Exhibit
5.0); addressed for delivery within the ZIP Code service area of that
SCF facility under L005; and prepared in accordance with M041 and M045
or M630. For 5-digit ZIP Code areas listed under Exhibit 5.0, mail
prepared on pallets must be entered at the corresponding BMC facility
sh

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A98-6553. Public record. Not legal advice.
