[Federal Register: April 7, 1999 (Volume 64, Number 66)] [Rules and Regulations] [Page 16814-16840] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr07ap99-9] ======================================================================= ----------------------------------------------------------------------- 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 [[Page 16818]] [GRAPHIC] [TIFF OMITTED] TR07AP99.007 [[Page 16819]] [GRAPHIC] [TIFF OMITTED] TR07AP99.008 [[Page 16820]] [GRAPHIC] [TIFF OMITTED] TR07AP99.009 [[Page 16821]] [GRAPHIC] [TIFF OMITTED] TR07AP99.010 [[Page 16822]] [GRAPHIC] [TIFF OMITTED] TR07AP99.011 [[Page 16823]] [GRAPHIC] [TIFF OMITTED] TR07AP99.012 [[Page 16824]] [GRAPHIC] [TIFF OMITTED] TR07AP99.013 [[Page 16825]] [GRAPHIC] [TIFF OMITTED] TR07AP99.014 [[Page 16826]] [GRAPHIC] [TIFF OMITTED] TR07AP99.015 [[Page 16827]] [GRAPHIC] [TIFF OMITTED] TR07AP99.016 [[Page 16828]] [GRAPHIC] [TIFF OMITTED] TR07AP99.017 [[Page 16829]] [GRAPHIC] [TIFF OMITTED] TR07AP99.018 [[Page 16830]] [GRAPHIC] [TIFF OMITTED] TR07AP99.019 [[Page 16831]] [GRAPHIC] [TIFF OMITTED] TR07AP99.020 [[Page 16832]] [GRAPHIC] [TIFF OMITTED] TR07AP99.021 [[Page 16833]] [GRAPHIC] [TIFF OMITTED] TR07AP99.022 [[Page 16834]] [GRAPHIC] [TIFF OMITTED] TR07AP99.023 [[Page 16835]] [GRAPHIC] [TIFF OMITTED] TR07AP99.024 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