Domestic Mail Manual Changes To Implement New Labeling List L001 and To Implement Package Reallocation for Periodicals and Standard Mail (A) Flats Placed on Pallets

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual Changes To Implement New Labeling List L001

and To Implement Package Reallocation for Periodicals and Standard Mail

(A) Flats Placed on Pallets

AGENCY: Postal Service.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule amends the Domestic Mail Manual (DMM) to

implement new labeling list L001, 5-Digit Scheme--Periodical Flats and

Irregular Parcels and Standard (A) Flats, and to offer mailers an

option to use package reallocation to protect the sectional center

facility (SCF) pallet level for Periodicals flats and irregular parcels

and Standard Mail (A) flats.

EFFECTIVE DATE: July 29, 1999.

FOR FURTHER INFORMATION CONTACT: Cheryl Beller, (202) 268-5166 or Barry

Elliott, (202) 268-2731.

SUPPLEMENTARY INFORMATION: On October 29, 1998, the Postal Service

published for public comment in the Federal Register a proposed rule

(63 FR 57970-57996) regarding the implementation of labeling list L001

and package reallocation. The Postal Service also invited comments on

the proposed rule from interested parties and accepted comments through

December 28, 1998. This final rule contains the DMM standards adopted

by the Postal Service after review of the comments that were submitted.

Evaluation of Comments Received

The Postal Service received 11 pieces of correspondence offering

comments

[[Page 16815]]

on the October 29 proposed rule. Respondents included major mailer

associations, individual publishers, printers, service bureaus, and

mailers. Nearly all of the commenters were supportive of either one or

all of the components of the proposed rule. However, many of the same

commenters who voiced support for the proposed rule also conveyed

various levels of uncertainty as to how their specific mailings would

be impacted by L001 and/or package reallocation. Many of these

commenters, therefore, suggested that the Postal Service should

implement both L001 and package reallocation optionally as opposed to

requiring either or both components. It was felt that implementing both

components optionally would allow more time for additional modeling and

also provide mailers with the flexibility to determine the most

appropriate combination of these options for their specific mailing(s).

Based on these comments, as well as other concerns that are mentioned

below, the Postal Service has elected to implement both L001 and

package reallocation as optional preparation methods with an effective

date of July 29, 1999.

Optional Implementation

By implementing both L001 and package reallocation as optional

preparation methods, mailers will have the ability to mitigate any of

the concerns that were cited during the comment period. Mailers will be

able to selectively utilize none, one, or both options as they deem

appropriate for their specific mailing. By appropriately tailoring the

utilization of these options to their specific mailing, mailers should

be able to avoid the undesired results noted in some of the comments.

Potential undesirable results that were cited as possibilities

depending on the size and/or density of a mailing were: (1) An increase

in the number of sacks, (2) an increase in the amount of mail on ADC or

BMC pallets (if package reallocation is not used), and (3) an

inordinate amount of mail being moved from 5-digit pallets to SCF

pallets. Several different alternatives were suggested to alleviate

these undesirable results. The alternatives varied from lowering the

minimum weight for pallets to creating a transfer hub pallet for

Periodicals. These alternatives are no longer entirely relevant given

that the Postal Service will allow the mailer to choose the option(s)

that are most appropriate for their mailings. Prior to preparing a

specific mailing, mailers should remain cognizant of the potential

undesirable results and therefore choose to experiment with different

combinations of the two options to determine the most appropriate

setup.

Other comments also factored into the decision to make both L001

and package reallocation optional. Two commenters expressed concerns

about L001 being a required pallet level because some palletized

mailings do not use palletization software. In these instances, it was

stated that the creation of an L001 pallet, if prepared manually

without software, would slow down and/or complicate production.

Accordingly, the commenters requested palletized mailings that are not

prepared with palletization software be exempt from using L001.

Although the Postal Service has decided to implement L001 as an

optional preparation method, and thus alleviate this concern

temporarily for mailers not using palletization software, it remains

likely the Postal Service will require the use of L001 for all

palletized Standard (A) and Periodicals flat mailings at some point in

the future. For ZIP Codes that are included on L001, it is more

appropriate for service and cost reasons for the Postal Service to

receive one L001 pallet instead of multiple 5-digit pallets because all

of the mail for the zones listed in a given combination are processed

at the same facility. The use of L001 facilitates greater presort

density, which can yield more ``cross-dock'' pallets for plants and

provide more timely service to mailers. Hence, there are operational

and service efficiencies to be gained from making L001 a required level

of preparation. Mailers that are not currently using palletization

software to prepare pallets should therefore begin evaluating how

palletization software can be integrated into their production

processes in the future, in order to be prepared for a change that

would require the usage of L001. Likewise, mailers that are already

using palletization software to prepare pallets are strongly encouraged

to utilize L001 because this list reflects the way the mail is

processed by postal operations.

One commenter expressed concern regarding the requirement that

reallocation could be performed only with Presort Accuracy Validation

and Evaluation (PAVE)-certified software. The concern pertains to the

portion of the mailing community that uses in-house-developed software

applications. The commenter remarked that there are marketplace factors

which compel commercial software vendors to attempt PAVE certification

and that those same factors do not apply to in-house developed software

applications. Therefore, the commenter requested that the requirement

be amended to ``PAVE certified software or approved documentation.''

The same commenter, as well as two other commenters, also expressed

concern about requiring the implementation of labeling list L001 by May

1999. They noted many companies are having to devote computer

programmers to the Y2K bug and resources are therefore limited for new

development. One of these three commenters also requested that a longer

lead time (12 weeks) be provided between the date that software is

PAVE-certified and the implementation date. Since both L001 and package

reallocation will now be optional, developers of in-house software

applications will be able to work on this initiative in a less frenetic

manner. As noted earlier, the implementation date for L001 and package

reallocation will be July 29, 1999. In the interest of providing the

requested lead time between certification and implementation, PAVE

testing of L001 and package reallocation will be made available to

interested parties beginning in April.

Additional Comments

Communication regarding rate impact--One commenter noted that the

Postal Service should emphasize the proposed changes will not have any

impact on rates. The comment is noted and the Postal Service reminds

mailers that rates for packages of flats on pallets are based on the

presort level of the package, not the presort level of the pallet.

Availability of Labeling List L001 in an Electronic Format

--One commenter requested that labeling list L001 should be made

available in an electronic format in order to eliminate the need for

developers to manually build a table of the information. Moreover, the

commenter requested that the list should be made available through a

mechanism that would facilitate quicker, if not, real-time updates.

Another commenter questioned if the publication of the L001 list in the

DMM would eventually result in the 5-digit scheme list, which is used

for automation letters, being published in the DMM instead of the

current mechanism (AMS City/State file). The same commenter also

expressed concern about potential confusion among mailers regarding the

L001 list and the 5-digit scheme list for letter-size mail.

The Postal Service recognizes the need for labeling lists, such as

L001, to be provided to software developers and mailers in an

electronic format. Realistically, making labeling lists

[[Page 16816]]

available in an electronic format is the first step in facilitating

quicker updates to mailers. An effort has been underway for some time

to provide this format, and is currently nearing completion. The USPS/

Mailers Technical Advisory Committee (MTAC) Presort Optimization Work

Group will be involved in the final stages of this effort to assure

that appropriate file formats are provided. The Postal Service does not

anticipate mailers having difficulty in discerning the difference

between the 5-digit scheme list and L001. The 5-digit scheme list

applies only to barcoded letters and L001 applies only to pallets and

5-digit Carrier Routes sacks of Periodicals flats and irregular parcels

and Standard (A) flats.

Impact of L001 pallets on delivery units--One commenter expressed

concerns regarding non-carrier route pieces being shipped to delivery

units only to be returned to a plant because the sortation to carrier

route is performed at the plant. The commenter suggested the Postal

Service should require mailers to place a CRRT designation on the

address label of every piece of mail in order to facilitate manual

distribution of this mail by nonscheme-trained clerks at the delivery

unit. This would help to alleviate the need to send the mail back to

the plant for distribution to carrier route.

The scenario outlined by the commenter is not necessarily an

outgrowth from the implementation of L001. There are already instances

where a delivery unit receives non-carrier route mail on a 5-digit

pallet and the unit must decide how to best handle that mail. In many

cases, the amount of non-carrier route pieces is the determining factor

in whether the mail is worked at the delivery unit or returned to the

plant. Field sites have received guidance on how L001 should be used

and how it can benefit them. Based on that information, field sites

have listed only the zone combinations they deem appropriate for their

specific service area. Operations at Postal Service Headquarters is

currently discussing other possible changes to pallet standards in the

future that could better remedy this situation and will soon begin

discussions with field sites for their input. It should be noted that

the destination delivery unit (DDU) rate will be available for mail on

a 5-digit scheme pallet prepared using L001 for all carrier route rate

Periodicals or Enhanced Carrier Route rate Standard Mail (A) on the

pallet when the pallet is deposited at the facility designated by the

Postal Service as the location where the carrier cases the mail based

on the ``Label To'' Zip Code on the pallet label.

List of Subjects in 39 CFR part 111

Postal Service.

Accordingly, the Postal Service adopts the following amendments to

the Domestic Mail Manual, which is incorporated by reference in the

Code of Federal Regulations (see 39 CFR part 111).

PART 111--AMENDED]

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, 407,

3001-3011, 3201-3219, 3403-3406, 3621, 5001.

Revise the following sections of the Domestic Mail Manual as

follows:

E Eligibility

E200 Periodicals

* * * * *

E230 Nonautomation Rates

* * * * *

2.0 CARRIER ROUTE RATES

* * * * *

2.2 Eligibility

* * * * *

[Amend 2.2 by revising 2.2a to add the word ``scheme'' before ``carrier

routes sacks'' and add new sentence as follows:]

a. The basic carrier route rate applies to copies in carrier route

packages of six or more letter-size pieces each that are sorted to

carrier route, 5-digit carrier routes, or 3-digit carrier routes trays;

and six or more flat-size pieces or irregular parcel-size pieces each

that are sorted to carrier route, 5-digit, or 5-digit scheme carrier

routes sacks. (Preparation of 5-digit scheme carrier routes sacks is

optional, but, if performed, must be done for all 5-digit scheme

destinations.)

* * * * *

E250 Destination Entry

* * * * *

2.0 DDU RATE

2.1 Eligibility

[Amend the second sentence of E250.2.1 by adding the word ``scheme''

before ``carrier routes sacks'' as follows:]

* * * Copies claimed at DDU rates must be part of a carrier route

package placed in a carrier route tray or sack, a 5-digit carrier

routes tray or sack, or, for flats and irregular parcels, a 5-digit

scheme carrier routes sack, under M200, or be palletized under M045,

and otherwise eligible for and claimed at a carrier route rate. * * *

* * * * *

E600 Standard Mail

* * * * *

E620 Nonautomation Standard Mail (A) Rates

* * * * *

2.0 ENHANCED CARRIER ROUTE RATES

* * * * *

2.8 Basic Rates

[Amend E630.2.8 by revising 2.8b to add the word ``scheme'' before

``carrier routes sacks'' and add new sentence as follows:]

Basic (nonautomation) carrier route rates apply to each piece that

is sorted under M620 into the corresponding qualifying groups:

* * * * *

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 or 5-digit

scheme carrier routes sack. (Preparation of 5-digit scheme carrier

routes sacks is optional, but, if performed, must be done for all 5-

digit scheme destinations.)

* * * * *

E650 Destination Entry

E651 Regular, Nonprofit, and Enhanced Carrier Route Standard Mail

* * * * *

7.0 DDU DISCOUNTS

* * * * *

7.2 Eligibility

[Amend E651.7.2 by revising the first sentence to provide DDU rate

eligibility for carrier route flats placed in 5-digit scheme carrier

routes sacks, as follows:]

Pieces in a mailing that meet the standards in 1.0 through 4.0 and

7.0 are eligible for the DDU rate when deposited at a DDU, addressed

for delivery within that facility's service area (carrier routes), and

placed in properly prepared and labeled carrier route packages sorted

to carrier route trays (letters) or sacks (flats and irregular

parcels), 5-digit carrier routes trays (letters) or sacks (flats and

irregular parcels), or 5-digit scheme carrier routes sacks (flats)

under M600, or palletized under M045, and otherwise eligible for and

claimed at a carrier route rate. * * *

* * * * *

[[Page 16817]]

L Labeling Lists

L000 General Use

[Add labeling list L001 as follows:]

L001 5-Digit Scheme--Periodicals Flats and Irregular Parcels and

Standard (A) Flats

When 5-digit scheme sort is used for Periodicals flats and

irregular parcels packages and Standard Mail (A) flats packages, mail

for the 5-digit ZIP Codes shown in Column A must be combined on pallets

or in carrier routes sacks labeled to the corresponding destination

shown in Column B.

BILLING CODE 7710-12-P

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BILLING CODE 7710-12-C

[[Page 16836]]

M MAIL PREPARATION AND SORTATION

M000 General Preparation Standards

M010 Mailpieces

M011 Basic Standards

1.0 TERMS AND CONDITIONS

1.1 Presort Process

[Amend M011.1.1 to incorporate a reference to package reallocation to

read as follows:]

Presort is the process by which a mailer prepares mail so that it

is sorted to at least the finest extent required by the standards for

the rate claimed. Generally, presort is performed sequentially, from

the lowest (finest) level to the highest level, to those destinations

specified by standard and is completed at each level before the next

level is prepared. Under standards for package reallocation for

Periodicals flats and irregular parcels and Standard Mail (A) flats on

pallets (see M041 and M045), mail will not necessarily be placed on the

lowest (finest) level pallets (package reallocation is optional, but,

if performed, must be done for the complete mailing job). Not all

presort levels are applicable in all situations.

1.2 Presort Levels

[Amend M011.1.2 by revising 1.2d and adding new 1.2e and 1.2f to

differentiate between 5-digit schemes for automation letters and 5-

digit schemes for pallets and for carrier routes sacks of Periodicals

flats and irregular parcels and Standard Mail (A) flats; redesignate

current M011.1.2e through M011.1.2m as M011.1.2g through M011.1.2o,

respectively, as follows:]

Terms used for presort levels are defined as follows:

* * * * *

d. 5-digit scheme (trays) for automation letters: the ZIP Code in

the delivery address on all pieces is one of the 5-digit ZIP Code areas

processed by the USPS as a single scheme, as shown in the USPS City

State File.

e. 5-digit scheme carrier routes (sacks) for Periodicals flats and

irregular parcels and Standard Mail (A) flats: the ZIP Code in the

delivery address on all pieces in carrier route packages begins with

one of the 5-digit ZIP Code zones processed by the USPS as a single

scheme, as shown in L001.

f. 5-digit scheme (pallets) for Periodicals flats and irregular

parcels and Standard Mail (A) flats: The ZIP Code in the delivery

address on all pieces begins with one of the 5-digit ZIP Code zones

processed by the USPS as a single scheme, as shown in L001.

* * * * *

1.3 Preparation Instructions

* * * * *

[Amend 1.3 by revising the first sentence of 1.3g to insert the phrase

``for automation letters''; inserting new 1.3h and i to define 5-digit/

scheme sort for carrier routes sacks of Periodicals flats and irregular

parcels and Standard Mail (A) flats and 5-digit/scheme sort for

Periodicals flats and irregular parcels packages and Standard Mail (A)

flats packages on pallets; redesignate 1.3h through s as 1.3j through

u, respectively, to read as follows:]

g. A 5-digit scheme sort for automation letters yields * * *

h. A 5-digit/scheme carrier routes sort for sacked carrier route

rate Periodicals flats and irregular parcels and Enhanced Carrier Route

rate Standard Mail (A) flats yields 5-digit scheme carrier routes sacks

for those 5-digit ZIP Codes listed in L001 and 5-digit carrier routes

sacks for other areas. The 5-digit ZIP Codes in each scheme are treated

as a single presort destination subject to a single minimum sack

volume, with no further separation by 5-digit ZIP Code required. Sacks

prepared for a 5-digit scheme destination that contain carrier route

packages for only one of the schemed 5-digit areas are still considered

5-digit carrier route scheme sorted and are labeled accordingly. The 5-

digit/scheme sort is optional for carrier route rate flat-size and

irregular parcel Periodicals and flat-size Enhanced Carrier Route rate

Standard Mail (A) in sacks. If preparation of 5-digit scheme carrier

routes sacks is performed, it must be done for all 5-digit scheme

destinations. A 5-digit/scheme carrier route sort may not be used for

mail at other rates in sacks.

i. A 5-digit/scheme sort for Periodicals flats and irregular

parcels and Standard Mail (A) flats prepared as packages on pallets

yields 5-digit scheme pallets for those 5-digit ZIP Codes listed in

L001 and 5-digit pallets for other areas. The 5-digit ZIP Codes in each

scheme are treated as a single presort destination subject to a single

minimum pallet volume, with no further separation by 5-digit ZIP Code

required. Pallets prepared for a 5-digit scheme destination that

contain packages for only one of the schemed 5-digit areas are still

considered 5-digit scheme sorted and are labeled accordingly. The 5-

digit/scheme sort is optional for flat-size and irregular parcel-size

Periodicals and flat-size Enhanced Carrier Route rate Standard Mail (A)

prepared as packages on pallets and may not be used for other mail

prepared on pallets, except for packages of Standard Mail (A) irregular

parcels that are part of a mailing job that is prepared in part as

palletized flats at automation rates. If preparation of 5-digit scheme

pallets is performed, it must be done for all 5-digit scheme

destinations.

* * * * *

M030 Containers

M031 Labels

* * * * *

4.0 PALLET LABELS

* * * * *

4.8 Delivery Unit, SCF, DDU, and DSCF Rates

[Amend M031.4.8 to refer to 5-digit scheme pallets, as follows:]

If a 5-digit, 5-digit scheme, 3-digit, or SCF pallet contains

copies claimed at Periodicals delivery unit and SCF zone rates, or

Standard Mail DDU and DSCF rates, as applicable, the content line of

the pallet label must show the designation ``DDU/SCF,'' after the

content description.

* * * * *

5.0 SECOND LINE CODES

[Amend 5.0 to include code for 5-digit scheme carrier routes sacks, as

follows:]

The codes shown below must be used as appropriate on Line 2 of

sack, tray, and pallet labels.

* * * * *

------------------------------------------------------------------------

Content Code

------------------------------------------------------------------------

Scheme................................. SCH.

(Periodicals and Standard Mail

(A) 5-digit scheme carrier

routes sacks and 5-digit

scheme pallets only).

------------------------------------------------------------------------

* * * * *

M032 Barcoded Labels

1.0 BASIC STANDARDS--TRAY AND SACK LABELS

* * * * *

Exhibit 1.3a 3-Digit Content Identifier Numbers

[Amend Exhibit 1.3a, Periodicals (PER) and Standard (A) by inserting

new 5-digit scheme carrier routes sacs and 5-digit scheme Enhanced

Carrier Routes sacks categories, respectively, to read as follows:]

* * * * *

[[Page 16837]]

----------------------------------------------------------------------------------------------------------------

Class and mailing CIN Human-readable content line

----------------------------------------------------------------------------------------------------------------

* * * * * *

*

Periodicals (Per)

* * * * * *

*

PER Flats--Carrier Route:

* * * * * *

*

5-digit carrier routes sacks................. 386 PER FLTS CR-RTS

5-digit scheme car. rts. sacks............... 371 PER FLTS CR-RTS SCH

* * * * * *

*

PER Parcels--Carrier Route:

* * * * * *

*

5-digit carrier routes sacks................. 396 PER IRREG CR-RTS

5-digit scheme car. rts. sacks............... 399 PER IRREG CR-RTS SCH

* * * * * *

*

Periodicals (News)

* * * * * *

*

NEWS Flats--Carrier Route:

* * * * * *

*

5-digit carrier routes sacks................. 486 NEWS FLTS CR-RTS

5-digit scheme car. rts. sacks............... 471 NEWS FLTS CR-RTS SCH

* * * * * *

*

NEWS Parcels--Carrier Route:

* * * * * *

*

5-digit carrier routes sacks................. 496 NEWS IRREG CR-RTS

5-digit scheme car. rts. sacks............... 499 NEWS IRREG CR-RTS SCH

* * * * * *

*

Standard Mail (A)

* * * * * *

*

Enhanced Carrier Route Flats--Nonautomation:

* * * * * *

*

5-digit carrier routes sacks................. 586 STD FLTS CR-RTS

5-digit scheme car. rts. sacks............... 529 STD FLTS CR-RTS SCH

* * * * * *

*

----------------------------------------------------------------------------------------------------------------

M033 Sacks And Trays

1.0 BASIC STANDARDS

* * * * *

1.7 Origin/Entry 3-Digit/Scheme Trays and Sacks

[Amend the first sentence in M033.1.7 to refer to preparation of 5-

digit carrier routes trays and sacks, optional 5-digit scheme carrier

routes sacks for Periodicals and Standard Mail (A), and 3-digit carrier

routes trays, as follows:]

Except for flat-size and irregular parcel-size Periodicals under

1.8, after all carrier route, 5-digit carrier routes (and where

permitted, 5-digit scheme carrier routes and 3-digit carrier routes),

5-digit (and, where permitted, 5-digit scheme), 3-digit (and, where

permitted, 3-digit scheme) sacks/trays are prepared * * *

1.8 Periodicals Flats and Irregular Parcels Origin/Entry SCF Sacks

[Amend the first sentence in M033.1.8 to refer to preparation of 5-

digit carrier routes sacks and optional 5-digit scheme carrier routes

sacks for Periodicals, as follows:]

For flat-size and irregular parcel-size Periodicals, after all

carrier route, 5-digit carrier routes (and where permitted, 5-digit

scheme carrier routes), 5-digit, 3-digit, and required SCF sacks are

prepared * * *

* * * * *

M040 Pallets

M041 General Standards

* * * * *

5.0 PREPARATION

[Amend M041.5.1 to indicate that pallet sortation using package

reallocation may not always require sorting a mailing to the finest

level as follows:]

5.1 Presort

Pallet preparation and pallet sortation are subject to the specific

standards in

[[Page 16838]]

M045. Pallet sortation is generally intended to presort the palletized

portion of a mailing to at least the finest extent required for the

corresponding class of mail and method of preparation. Pallet sortation

is sequential from the lowest (finest) level to the highest and must be

completed at each required level before the next optional or required

level is prepared. Standard preparation terms and presort levels for

pallets are defined in M011 and M045. For sacks, trays, or machinable

parcels on pallets, the mailer must prepare all required pallet levels

before any mixed ADC or mixed BMC pallets are prepared for a mailing or

job. Packages and bundles prepared under M045 must not be placed on

mixed ADC or mixed BMC pallets. Packages and bundles that cannot be

placed on pallets must be prepared in sacks under the standards for the

rate claimed. The standards for package reallocation (M045.5.0), an

optional method of pallet preparation, are designed to retain as much

mail as possible at the SCF level and may result in some packages of

Periodicals flats and irregular parcels and Standard Mail (A) flats,

and irregular parcels that are part of a mailing job that is prepared

in part as palletized flats at automation rates, not being placed on

the finest level of pallet possible. Mailers must use PAVE-certified

presort software to prepare mailings using package reallocation

(package reallocation is optional, but, if performed, must be done for

the complete mailing job).

5.2 Required Preparation

[Amend M041.5.2 by revising 5.2a to refer to Periodicals and Standard

Mail (A) 5-digit pallets prepared under the standards for package

reallocation as follows:]

These standards apply to:

a. Periodicals, Standard Mail (A), and Parcel Post (other than BMC

Presort, OBMC Presort, DSCF, and DDU rate mail). A pallet must be

prepared to a required sortation level when there are 500 pounds of

Periodicals or Standard Mail packages, sacks, or parcels or six layers

of Periodicals or Standard Mail (A) letter trays. For packages of

Periodicals flats and irregular parcels and packages of Standard Mail

(A) flats on pallets prepared under the standards for package

reallocation (M045.5.0), not all mail for a required 5-digit

destination is required to be on a 5-digit pallet or optional 5-digit

scheme pallet. Mixed pallets of sacks, trays, or machinable parcels

must be labeled to the BMC or ADC (as appropriate) serving the post

office where mailings are entered into the mailstream. The processing

and distribution manager of that facility may issue a written

authorization to the mailer to label mixed BMC or mixed ADC pallets to

the post office or processing and distribution center serving the post

office where mailings are entered. These pallets contain all mail

remaining after required and optional pallets are prepared to finer

sortation levels under M045, as appropriate.

* * * * *

6.0 COPALLETIZED, COMBINED, OR MIXED-RATE LEVEL MAILINGS OF FLAT-SIZE

PIECES

* * * * *

[Amend M041.6.3 and M041.6.4 to indicate that pallet sortation using

package reallocation may not always require sorting a mailing to the

finest level, as follows:]

6.3 Periodicals Publications

To combine more than one Periodicals publication on pallets, the

mailer must merge and presort copies of all the publications into

common packages to achieve the finest presort level for the combined

mailing. To copalletize different Periodicals flat-size publications,

the mailer must consolidate on pallets all independently sorted

packages for each publication to achieve the finest presort level for

the mailing. A combined or copalletized mailing prepared under

M045.5.0, using package reallocation, may not always result in all

packages being placed on the finest pallet level possible. Both

combined and copalletized publications must be supported by the

documentation required in M045. Preferred Periodicals may be combined

with Regular Periodicals only as permitted by standard.

6.4 Standard Mail (A)

To copalletize different Standard Mail (A) flat-size mailings, the

mailer must consolidate on pallets all independently sorted packages

from each mailing to achieve the finest presort level for the mailing,

except that a copalletized mailing prepared under M045.5.0, using

package reallocation, may not always result in all packages being

placed on the finest pallet level possible. At the time of mailing, the

mailer must present computer-generated listings required in M045 that

include a summary list consolidating the copalletized multiple mailings

and a list of the contents of each pallet by ZIP Code and presort

level.

* * * * *

M045 Palletized Mailings

* * * * *

4.0 PALLET PRESORT AND LABELING

[Amend the title of M045.4.1 to indicate that it also refers to trays

on pallets, as follows:]

4.1 Packages, Bundles, Sacks, or Trays

[Amend M045.4.1 by revising 4.1a and adding new 4.1b to provide an

optional 5-digit/scheme sort for packages of Periodicals and Standard

Mail (A) flats; redesignate M045.4.1b through M0454.1e as M045.4.1c

through M045.4.1f, as follows:]

Preparation sequence and Line 1 labeling:

a. 5-digit: required for sacks; required for packages and bundles

except for packages and bundles prepared under b; optional for trays;

for Line 1, use 5-digit ZIP Code destination of contents.

b. 5-digit/scheme: optional for Periodicals and Standard Mail (A)

packages and bundles; for Line 1 for 5-digit pallets, use 5-digit ZIP

Code destination of contents; for Line 1 for 5-digit scheme pallets,

use L001, column B.

* * * * *

4.4 Line 2

[Amend M045.4.4 to require ``SCHEME'' or ``SCH'' to appear on 5-digit

scheme pallets of Periodicals or Standard Mail (A), as follows:]

Line 2, class of mail (shown below, as appropriate), processing

category and mail type (e.g., ``MACH,'' ``LTRS BC''), ``SCHEME'' or

``SCH'' for 5-digit scheme pallets of Periodicals or Standard Mail (A),

and any processing code required by the applicable labeling list under

4.1, 4.2, and 4.3:

* * * * *

[Add new section M045.5.0 to specify preparation requirements for

package reallocation; and redesignate sections M045.5.0 through

M045.13.0, as M045.6.0 through M045.14.0, respectively, as follows:]

5.0 PACKAGE REALLOCATION FOR PERIODICALS FLATS AND IRREGULAR PARCELS

AND STANDARD MAIL (A) FLATS ON PALLETS

5.1 Basic Standards

Package reallocation is an optional preparation method (if

performed, package reallocation must be done for the complete mailing

job); only PAVE-certified presort software may be used to create

pallets under the standards in 5.2 through 5.4. The software will

determine if mail for an SCF service area would fall beyond the SCF

level if all required 5-digit or optional 5-digit/

[[Page 16839]]

scheme pallets and optional 3-digit pallets are prepared. Reallocation

is performed only when there is mail for the SCF service area that

would fall beyond the SCF pallet level (e.g., to an ADC or BMC pallet).

The amount of mail required to bring the mail that would fall beyond

the SCF level back to an SCF level pallet level is the minimum volume

that will be reallocated, where possible.

5.2 General Reallocation Rules

Reallocation rules:

a. Package preparation is not affected by the reallocation process.

Reallocate only complete packages and only the minimum number of

packages necessary to create an SCF pallet meeting the minimum pallet

weight. Based on the weight of individual pieces within a package and

packaging parameters, the weight of mail that is reallocated may be

slightly more than the minimum volume required to create an SCF pallet.

b. Reallocate packages from the highest available pallet level

possible. If it is not possible to reallocate some mail from a 3-digit

pallet first, then attempt to eliminate a 3-digit pallet and reallocate

all mail from that pallet to create an SCF pallet; if mail cannot be

reallocated from a 3-digit pallet, then attempt to reallocate some mail

from a 5-digit or 5-digit scheme pallet.

c. The reallocation process may result in the elimination of a 3-

digit pallet to create an SCF pallet, but a 5-digit or 5-digit scheme

pallet (when 5-digit scheme pallets are prepared) may not be eliminated

in order to create an SCF pallet.

d. When reallocating mail to create an SCF pallet, reallocate mail

from only one more finely sorted pallet. This may be accomplished by

reallocating a portion of a 3-digit pallet, reallocating all mail from

a 3-digit pallet, or reallocating a portion of a 5-digit or 5-digit

scheme pallet following the sequence in 5.2b.

e. Mailers may use any minimum pallet weight(s) permitted by DMM

standards and may use different minimum weights for different pallet

levels in conjunction with package reallocation.

5.3 Reallocation of Packages if Optional 3-Digit Pallets Are

Prepared

Reallocation rules:

a. Attempt to identify a 3-digit pallet of adequate weight that can

support reallocation of one or more packages to bring the mail that has

fallen through the SCF level back to the SCF level without eliminating

the pallet. A sufficient volume of mail must remain on the 3-digit

pallet after reallocation to meet the 3-digit pallet weight minimum

established by the mailer in compliance with applicable DMM standards.

If a 3-digit pallet of adequate weight is available, create an SCF

pallet by combining the reallocated mail from the 3-digit pallet with

the mail that would fall beyond the SCF pallet level.

b. If no single 3-digit pallet within the SCF service area contains

an adequate volume of mail to allow reallocation of a portion of the

mail on a pallet as described in the previous step, then eliminate one

3-digit pallet and reallocate all of the mail to create an SCF pallet

by combining it with the mail that would fall beyond the SCF pallet

level. The result will be that the software will not prepare one 3-

digit pallet for the SCF service area if it is detrimental to the SCF

pallet.

c. If there are no 3-digit pallets, attempt to identify a 5-digit

or 5-digit scheme pallet of adequate weight to support reallocation of

one or more packages to bring the mail that would fall beyond the SCF

pallet level back to the SCF level. A sufficient volume of mail must

remain on the 5-digit or 5-digit scheme pallet after reallocation to

meet the pallet weight minimum established by the mailer in compliance

with applicable DMM standards. If a 5-digit or 5-digit scheme pallet of

adequate weight is available, create an SCF pallet by combining the

reallocated packages with the mail that would fall beyond the SCF

pallet level.

d. If no single 5-digit or 5-digit scheme pallet within the SCF

service area contains an adequate volume of mail to allow reallocation

of a portion of the mail on a pallet as described in c, then no

packages will be reallocated and an SCF pallet will not be prepared;

the mail that falls beyond the SCF pallet level must be placed on the

appropriate level pallet (ADC or BMC) or in the appropriate level sack.

5.4 Reallocation of Packages if Optional 3-Digit Pallets Are Not

Prepared

Reallocation rules:

a. Attempt to identify a 5-digit or 5-digit scheme pallet of

adequate weight to support reallocation of one or more packages to

bring the mail that would fall beyond the SCF pallet level back to the

SCF level. A sufficient volume of mail must remain on the 5-digit or 5-

digit scheme pallet after reallocation to meet the pallet weight

minimum established by the mailer in compliance with applicable DMM

standards. If a 5-digit or 5-digit scheme pallet of adequate weight is

available, create an SCF pallet by combining the reallocated packages

with the mail that would fall beyond the SCF pallet level.

b. If no single 5-digit or 5-digit scheme pallet within the SCF

service area contains an adequate volume of mail to allow reallocation

of a portion of the mail on a pallet as described in a, then no

packages will be reallocated and an SCF pallet will not be prepared;

the mail that falls beyond the SCF pallet level must be placed on the

appropriate level pallet (ADC or BMC) or in the appropriate level sack.

5.5 Documentation

Mailings must be supported by documentation produced by PAVE-

certified software meeting the standards in P012.

6.0 PALLETS OF PACKAGES, BUNDLES, AND TRAYS OF LETTER-SIZE MAIL

[Amend redesignated 6.1 and 6.2 by revising the second section of each

section to indicate that automation rate and nonautomation rate mail

must be placed on separate 5-digit scheme pallets, as follows:]

6.1 * * * Automation rate and nonautomation rate pieces must be

placed on separate 5-digit and 5-digit scheme pallets. * * *

6.2 * * * Automation rate and nonautomation rate pieces must be

placed on separate 5-digit and 5-digit scheme pallets, except that

upgradable pieces prepared under M610 may be placed on 5-digit pallets

with automation rate pieces. * * *

* * * * *

M200 Periodicals (Nonautomation)

1.0 BASIC STANDARDS

* * * * *

1.5 Low Volume Packages and Sacks

[Amend M200.1.5 by revising reference to ``3.1a through 3.1e'' to read

``3.1a through 3.1f'', as follows:]

As a general exception to 2.4b through 2.4d and 3.1a through 3.1f,

* * *

* * * * *

3.0 SACK PREPARATION (FLAT-SIZE PIECES AND IRREGULAR PARCELS)

3.1 Sack Preparation

[Amend M200.3.1 by revising 3.1b and adding new 3.1c to provide an

optional 5-digit/scheme carrier routes sort for flats and irregular

parcels; redesignate M200.3.1c through M200.3.1g as M200.3.1d through

M200.3.1h, as follows:]

Sack size, preparation sequence, and Line 1 labeling:

* * * * *

[[Page 16840]]

b. 5-digit carrier routes (carrier routes packages only): required

for rate eligibility (no minimum) unless sacks are prepared under c;

for Line 1, use 5-digit ZIP Code destination of packages, preceded for

military mail by the prefixes under M031.

c. 5-digit/scheme carrier routes (carrier route packages only):

required at 24 pieces, optional with one six-piece package minimum

except under 1.5; for Line 1 for 5-digit carrier routes sacks, use 5-

digit ZIP Code destination of packages, preceded for military mail by

the prefixes under M031; for Line 1 for 5-digit scheme carrier routes

sacks, use L001, column B.

* * * * *

3.2 Sack Line 2

[Amend M200.3.2 by adding new 3.2e for 5-digit scheme carrier routes

sacks; and redesignate M200.3.2e through M200.3.2h as M200.3.2f through

M200.3.2i, respectively, as follows:]

* * * * *

e. 5-digit scheme car. rts.: ``CR-RTS SCH''

* * * * *

M600 Standard Mail (Nonautomation)

* * * * *

M620 Enhanced Carrier Route Standard Mail

* * * * *

4.0 SACK PREPARATION--FLAT-SIZE PIECES AND IRREGULAR PARCELS

* * * * *

4.2 Sack Preparation

[Amend M620.4.2 by revising 4.2b and adding new 4.2c, as follows:]

Sack size, preparation sequence, and Line 1 labeling:

* * * * *

b. 5-digit carrier routes: required (no minimum); for irregular

parcels; for Line 1, use 5-digit ZIP Code destination of packages,

preceded for military mail by the prefixes under M031.

c. 5-digit/scheme carrier routes: required (no minimum) for flats;

for Line 1, for 5-digit sacks, use 5-digit ZIP Code destination of

packages, preceded for military mail by the prefixes under M031; for

Line 1 for 5-digit scheme sacks, use L001, column B.

4.3 Sack Line 2

[Amend M620.4.3 by adding new 4.3e for 5-digit scheme carrier routes

sacks, as follows:]

* * * * *

e. 5-digit scheme car. rts.: ``CR-RTS SCH''

* * * * *

P Postage And Payment Methods

P000 Basic Information

* * * * *

P012 Documentation

* * * * *

2.0 STANDARDIZED DOCUMENTATION--FIRST-CLASS MAIL, PERIODICALS, AND

STANDARD MAIL (A)

* * * * *

2.2 Format and Content

[Amend P012.2.2d by revising 2.2d(4) to add standards for identifying

SCF pallets created as a result of package reallocation by adding the

following to the end of the section:]

* * * * *

d. For packages on pallets, the body of the listing reporting these

required elements:

* * * * *

(4) * * * Document SCF pallets created as a result of package

reallocation under M045.5.0 on the USPS Qualification Report by

designating the protected SCF pallet with an identifier of ``PSCF.''

This identifier is only required to appear on the USPS Qualification

Report; it is not required to appear on pallet labels or on any other

mailing documentation.

* * * * *

2.4 Sortation Level

[Amend 2.4 by adding new indicators ``CR5S'' to identify 5-digit

carrier routes scheme sacks, ``5DGS'' to identify 5-digit scheme

pallets, and ``PSCF'' to identify SCF pallets created as a result of

package reallocation under M045.5.0, as follows:]

The actual sortation level (or corresponding abbreviation) is used

for the package, tray, sack, or pallet levels required by 2.2 and shown

below:

------------------------------------------------------------------------

Sortation level Abbreviation

------------------------------------------------------------------------

* * * * *

5-Digit Carrier Routes..................... CR5

5-Digit Scheme Carrier Routes (Periodicals CR5S

flats, Standard Mail (A) flats).

5-Digit Scheme (pallets, Periodicals flats 5DGS

and irregular parcels, Standard Mail (A)

flats).

* * * * *

SCF (pallets).............................. N/A

SCF (pallets created from package PSCF

reallocation).

* * * * *

------------------------------------------------------------------------

Stanley F. Mires,

Chief Counsel, Legislative.

[FR Doc. 99-8400 Filed 4-6-99; 8:45 am]

BILLING CODE 7710-12-P