NOTE: COMMENTS REGARDING ANY FEDERAL REGISTER NOTICE MUST BE SENT TO THE ADDRESS INDICATED IN THE DOCUMENT. ANY COMMENTS ON THE RAPID INFORMATION BULLETIN BOARD SYSTEM (RIBBS) ABOUT ANY FEDERAL REGISTER NOTICES WILL NOT BE USED OR CONSIDERED IN THE COURSE OF ANY RULE MAKING. ======================================================================= ----------------------------------------------------------------------- POSTAL SERVICE 39 CFR Part 111 Revisions to Standards for Detached Address Labels AGENCY: Postal Service. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Postal Service adopts changes in Domestic Mail Manual (DMM) standards concerning use of detached address labels (DALs) to standardize those rules as they apply to the different uses of DALs (second-, third-, and fourth-class flats and third-class merchandise samples). EFFECTIVE DATE: December 13, 1994. FOR FURTHER INFORMATION CONTACT: Leo F. Raymond, (202) 268-5199. SUPPLEMENTARY INFORMATION: On April 8, 1994, the U.S. Postal Service (USPS) published for comment proposed changes to Domestic Mail Manual (DMM) unit A060, which contains the standards for use of detached address labels (DALs). 59 FR 16786-16788. The proposed revisions, which arose from suggestions presented during the 1993 DMM redesign project, were generally designed to eliminate as much as possible the distinctions between how second-, third-, and fourth-class flats and third-class merchandise samples can each be mailed using DLs. This proposed rule did not seek to introduce significantly new requirements or options for existing uses (other than those that occur from standardization across classes), nor to permit new uses of DALs. To avoid wordiness, the term ``item'' was introduced to replace the phrase ``second-class flat, third-class flat or merchandise sample, or fourth- class bound printed matter'' when discussing that which is distributed with the DAL. The USPS received five written comments on the proposed rule. All commenters generally supported the proposed rule as a measure to simplify and standardize existing regulations. However, commenters also suggested revisions beyond those related to making the standards uniform in all mailing applications. One commenter urged the Postal Service to allow the use of DALs in more mailing situations than at present. This proposal is beyond the scope of this rulemaking and will not be addressed as part of this final rule. Another commenter found the language of proposed DMM A060.1.2 ambiguous in its use of ``must'' and ``may'' to describe situations in which DALs are permitted. That language is revised for greater clarity in renumbered DMM A060.1.3 of the final rule. This commenter was also concerned by the term ``full'' (in proposed DMM A060.3.3) as applied to the cartons used to transport the items to be delivered using DALs, fearing that, taken literally, it would require an infinite number of carton sizes to suit all situations. The intent behind the full carton requirement is that the fewest number of cartons be used and that each be as full as reasonably possible to minimize transportation cost and movement of (and potential damage to) the items inside the carton while in transit. The USPS does not expect customers to bear an unreasonable burden to ensure full cartons, and the language of the final rule is clarified to state that full cartons can be achieved by placing dunnage in cartons to maintain the integrity of their contents while in transit. One commenter submitted a series of questions as a means of indicating areas in which it felt the proposed rule needed additional definition. The issues raised are (1) whether the DALs and items for a post office handling small volumes of mail could be combined in the same shipping carton; (2) how many 5-digit ZIP Codes are needed for general distribution and what constitutes the residual; and (3) the standards applicable to palletization of cartons of DALs and items. The final rule has been amended so that (1) only the DALs for the same 5- digit ZIP Code area may be placed in the same carton; (2) general distribution requires a minimum density in a 5-digit ZIP Code area, not a minimum number of 5-digit areas (less-than-general-distribution quantities in that mailing are considered residual); and (3) DALs and items may be palletized under the same standards applicable to other mail. Another commenter stated that the notification requirement in proposed DMM A060.3.1 represented an unnecessarily redundant burden on the mailer by mandating both an advance written notice to the delivery office and the enclosure of a copy of that notice in the actual mailing. The USPS is interested in ensuring that delivery offices correctly identify DAL mailings and associate them with the corresponding mailer instructions. For that reason, the enclosure of a copy of an advance notice was seen as a relatively foolproof device. However, to remove this perceived burden, the final rule will allow the mailer the alternative of showing a key number or code on both the advance letter and (instead of a copy of the notice) on the cartons used for the mailing. One commenter raised a series of questions based on experience in applying the existing standards, noting that certain issues were not resolved by the proposed rule, and asking that they be addressed in the final rule. The questions were (1) how the carton's weight is considered for purposes of postage computation; (2) whether excess DALs should be allowed (based on an assumed number of undeliverables), what that excess should be, and how those DALs would be viewed for purposes of classification, rate eligibility, and postage payment; and (3) how the terms in proposed DMM A060.3.4 (regarding identification of quantities) were to be correctly applied. The final rule has been revised to address those questions: (1) postage is to be determined based on the weight of the mailpiece, i.e., the combined weight of the DAL and the accompanying item, excluding tare; (2) DALs and items are to be supplied in equal numbers although, if excess items or DALs are received by the delivery post office, additional quantities of items or DALs (as needed) may be shipped First-Class Mail (or Priority Mail or Express Mail); and (3) proposed DMM A060.3.4 (now DMM A060.3.5) has been revised to narrow reference to ``packages'' to apply to packages of compatible items (e.g., flats) placed in sacks. Another commenter pointed out that use of the term ``detached address card (DAC)'' in the proposed rule was contrary to prior practice. It noted that the term ``detached address label (DAL)'' would be more appropriate because it is used in the Domestic Mail Classification Schedule and is well established in the mailing industry's vocabulary. The USPS agrees and will retain the current term (DAL) in the final rule. The same commenter, while supporting the placement on the front of the DAL of identifying information about the accompanying item, argued that the language of proposed DMM A060.2.4 was too broad in allowing ``equivalent identifying information.'' Such a term, the commenter believed, was likely to invite ``overreaching interpretations that convert the front of the DAL into an advertising or promotional vehicle.'' The USPS agrees that such a consequence is undesirable, and the final rule tightens the wording in DMM A060.2.4 accordingly. That commenter also pointed out that the language of proposed DMM A060.4.1a, by requiring the mailer to supply additional items if their quantity was exceeded by the number of DALs provided to a delivery office, left the mailer without the option of having those excess DALs disposed of as waste. (The proposed rule stated that excess DALs would be returned postage due if the necessary additional items were not provided.) Particularly when additional items were not available, the commenter noted, the proposed requirement would be both impossible to satisfy and punitive in its consequence. Concurrently, the commenter noted that proposed DMM A060.4.1c would appear not to offer the mailer a negative option concerning address correction, and apparently mandates the return of all undeliverable-as- addressed DALs. This commenter suggests that the mailer should have to request address correction. For consistency, proposed DMM A060.5.0d would also require revision. The USPS believes the commenter's points are valid, and these provisions are amended in the final rule to allow the options suggested by the commenter and to treat undeliverable-as- addressed DALs like other mail of their class and rate. Finally, concerning proposed DMM A060.3.3, this commenter suggests that ``other authorized containers'' be included as means to transport items, in addition to sacks and pallets, and that the application of the 40-pound limit be more clearly defined. Although the use of ``other'' equipment, such as wheeled containers, might be reasonable in some instances, the USPS is concerned both over the consequences of irregular equipment supplies and how various types of equipment might not be appropriate in some applications. For that reason, the final rule allows the use of ``other'' equipment but limits its use to the service area of the facility whose manager authorized such equipment and which will receive the mailing. The final rule also more clearly addresses the application of the 40-pound limit. Based on the adoption of several commenter suggestions, the final rule has been reorganized slightly from the proposed rule. It also includes (as DMM A060.1.6) a provision that specifically states the currently unwritten requirement that the mailer is responsible for demonstrating compliance with the density, distribution, or other criteria that might apply to a particular DAL mailing. List of Subjects in 39 CFR Part 111 Postal Service. For the reasons discussed above, the Postal Service hereby adopts the following amendments to the Domestic Mail Manual, which is incorporated by reference in the Code of Federal Regulations (see 39 CFR 111). PART 111--[AMENDED] 1. The authority citation for 39 CFR 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, 3626, 5001. 2. Replace Domestic Mail Manual A060 with the following: A060 Detached Address Labels 1.0 USE 1.1 Definitions For purpose of these standards, ``item[s]'' refers inclusively to the types of mail described in 1.2 through 1.4. 1.2 Second- or Third-Class Flats Saturation mailings of unaddressed second- or third-class flats may be mailed with detached address labels (DALs). For purposes of this standard, a saturation mailing is one sent to at least 75% of the total addresses on a carrier route or 90% of the residential addresses on a route, whichever is less. Deliveries are not required to every carrier route of a delivery unit. 1.3 Third-Class Merchandise Samples Merchandise samples more than 5 inches wide (high) or 1/4 inch thick, or nonuniform in thickness, mailed at bulk third-class rates, must be mailed with DALs when prepared for general distribution on city delivery routes. Merchandise samples may be mailed with DALs for general distribution on other (e.g., rural) routes and for the residual portion of a general distribution mailing. For purpose of this standard, ``general distribution'' means distribution in a single mailing to at least 25% of the addresses in any 5-digit ZIP Code delivery area regardless of the number of samples addressed to a single route or the number of 5-digit areas to which samples are addressed. If the same mailing includes a ``general distribution'' to one or more 5- digit areas and distribution of lesser quantities to one or more other 5-digit areas, the latter pieces are considered ``residual.'' 1.4 Fourth-Class Bound Printed Matter Mailings of unaddressed pieces of bound printed matter may be mailed with DALs for delivery in the local zone of the post office of mailing. 1.5 Alternative Address Formats The addresses on DALs may be prepared using an alternative address format, subject to the applicable eligibility, volume, density, and preparation standards. 1.6 Evidence of Distribution When requested by the USPS, DAL mailers must provide documentation to establish that the applicable distribution standards in 1.2 through 1.4 are met. 2.0 PREPARING DETACHED ADDRESS LABELS 2.1 Construction Each DAL must be made of paper or cardboard stock that is not folded, perforated, or creased, and that meets these measurements: a. Between 3\1/2\ and 5 inches high (perpendicular to the address label). b. Between 5 and 9 inches long (parallel to the address label). c. At least 0.007 inch thick. 2.2 Addressing The address for each item must be placed on a DAL, parallel to the longest dimension of the DAL, and may not appear on the item it accompanies. The DAL must contain the recipient's delivery address and the mailer's return address. A ZIP+4 code or 5-digit ZIP Code is required unless an alternative address format is used. The delivery address may include the correct delivery point barcode. 2.3 Ratio Only one DAL may be prepared for each accompanying item, and only one item may be identified for delivery per DAL (i.e., one DAL may not be prepared to deliver with one each of multiple different accompanying items or with multiples of the same item). 2.4 Required Information The following words must appear in bold type at least 1/8 inch high on the front of each DAL: ``USPS regulations require that this address label be delivered with its accompanying postage-paid mail. If you should receive this label without its accompanying mail, please notify your local postmaster.'' The title or brand name of the item (which may include an illustration of the item) must also appear on the front or back of the DAL to associate it with the accompanying item. 2.5 Other Information Nothing may appear on the front of a DAL except the information described above, an indicium of postage payment, and official pictures and data circulated by the National Center for Missing and Exploited Children. Ancillary service endorsements are not permitted; undeliverable material is treated under 4.0. 3.0 PREPARING THE MAILING 3.1 Notice to Delivery Office Each delivery office to receive a DAL mailing must be notified in writing at least 10 days in advance of the requested delivery period. To ensure that the delivery office can readily relate the notice to the cartons containing the corresponding items, a copy of that letter must be enclosed with the DALs unless the initial notice and the cartons used for the DALs and items each conspicuously bears a mailing identification number. The letter must show the following: a. Name and telephone number of mailer or representative. b. Origin post office of mailing. c. Expected mailing date. d. Description of mailing. e. Number of addressees for each 5-digit ZIP Code. f. Number of DALs per carton or package. g. Number of items per carton or package. h. Expected delivery period (range of dates). i. Requested action in the event of excess or undeliverable DALs or items (see 4.0). 3.2 DALs The DALs must be presorted, counted, and packed by 5-digit ZIP Code delivery area. Only DALs for the same 5-digit area may be placed in the same carton. DAL mailings claimed at carrier route or walk-sequence rates must be further prepared under the corresponding standards. Different size cartons may be used in the same mailing, but each must be filled with dunnage as necessary to ensure that the DALs retain their integrity while in transit. Each carton of DALs must bear a label showing the information in 3.5 unless a mailing identification number is used (see 3.1). Multiple containers of DALs must be numbered sequentially (1 of ____, 2 of ____, etc.). 3.3 Items The items to be distributed with the DALs must be placed in cartons or prepared in packages placed in sacks, as appropriate for the type of item and subject to the standards applicable to the rate claimed. A label bearing the content description information in 3.5 must be affixed to each carton, sacked package, or pallet unless a mailing identification number is used (see 3.1). Cartons of items (including those on pallets) may be of different sizes but must be filled with dunnage as necessary to ensure the integrity of the items while in transit. The gross weight of each carton or sack must not be more than 40 pounds. 3.4 Combined Cartons Both the DALs and the accompanying items may be enclosed in the same carton when sent to a small-volume 5-digit ZIP Code area. If packed together, the following standards apply: a. The DALs must be packaged and labeled under 3.2 and placed on top of the items. b. The carton must be packed with dunnage to ensure the integrity of the contents while in transit. c. The gross weight of the carton must not exceed 40 pounds. d. The exterior of the carton must be labeled under 3.5 and marked ``DALs ENCLOSED'' in letters not less than \1/2\ inch high. 3.5 Label Information Sacks, cartons, and pallets of DAL mail must be labeled under the preparation standards applicable to the rate claimed. A second label must be affixed to each carton or sacked package to provide the following information (unless a mailing identification number is used under 3.1): a. Delivery post office name and 5-digit ZIP Code delivery area. b. Title, brand name, or other description of the items. c. Name and telephone number of the mailer or representative. d. Number of labels or items in the carton, as applicable. e. Instructions to open and distribute either the DALs with matching items or the items with matching DALs, as appropriate. 3.6 Use of Equipment Cartons, packages of flats, and sacks of items may be palletized under the applicable standards; cartons of DALs must be palletized with the corresponding items under the same standards. The USPS plant manager at whose facility a DAL mailing is deposited may authorize other types of equipment for the portion of the mailing to be delivered in that plant's service area. 3.7 Bound Printed Matter Bound printed matter distributed with DALs must be deposited at the acceptance point specified by the postmaster. Local zone rates are available, subject to G030. 3.8 Mailing Statement The mailer must complete and provide the appropriate mailing statement with each mailing. 4.0 DISPOSITION OF EXCESS OR UNDELIVERABLE MATERIAL 4.1 Excess Material The letter required under 3.1 must either request that the delivery office contact the mailer (or representative) about excess DALs or items, or provide instructions for their treatment. (If the mailer does not provide information about excess DALs or items, such material is disposed of as waste by the USPS.) The mailer must choose one of the following options for each DAL mailing and the items: a. Dispose of any excess material as waste. b. Return the excess material to the mailer, postage due at the applicable single-piece rate under 5.0. c. Hold the excess material for pickup by the mailer (or representative); if pickup is not made within 15 calendar days of the notice to the mailer, the material is returned to the mailer postage due. d. Hold the excess material while additional DALs or items are supplied (as applicable); if additional material is not supplied within 15 days of the notice to the mailer, the excess material is returned to the mailer postage due. Additional material must be sent prepaid to the delivery post office as First-Class Mail, Priority Mail, or Express Mail. 4.2 Undeliverable-as-Addressed DALs DALs with incorrect, nonexistent, or otherwise undeliverable addresses are handled under F010. The accompanying item is treated as specified by the mailer under 4.1. 5.0 POSTAGE 5.1 Available Rates DAL mailings are not eligible for any automation rate, but they may qualify for carrier route or walk-sequence rates subject to the applicable standards. 5.2 Initial Distribution Postage is computed based on the weight of the entire mailpiece (i.e., combined weight of the item and the accompanying DAL). If the number of DALs and items mailed is not identical, the ``number of pieces'' used to determine postage is the greater of the two; no postage refund is allowed in these situations. The total weight of the mailing excludes the weight of the cartons used to carry the DALs or items, dunnage, and carton labels. In addition, these methods of postage payment apply: a. Second-class flats must be prepaid. A notice of entry must appear in the upper right corner of the DAL. b. Third-class flats and samples and fourth-class bound printed matter must be paid by permit imprint, which must appear on each DAL. Third-class postage is computed at the applicable nonletter rates. 5.3 Returns Postage for excess or undeliverable DALs or items being returned is computed at the single-piece third- or fourth-class rate applicable to the combined weight of the DAL and the accompanying item, regardless of whether both are being returned. The total amount due for returned material, which includes the return postage and the applicable address- correction fee for each DAL or item returned, is collected upon the material's return to the mailer. 5.4 Additional Items Additional material (DALs or items) being supplied under 4.1d must be mailed with postage prepaid as First-Class Mail, Priority Mail, or Express Mail, subject to the eligibility standards applicable to the rate claimed and the conditions in 5.2. A transmittal letter making these changes in the pages of the Domestic Mail Manual will be published and will be transmitted to subscribers automatically. Notice of issuance will be published in the Federal Register as provided y 39 CFR 111.3. Stanley F. Mires, Chief Counsel, Legislative. [FR Doc. 94-22735 Filed 9-13-94; 8:45 am]