[Federal Register: August 29, 2000 (Volume 65, Number 168)]
[Proposed Rules]
[Page 52479-52528]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29au00-42]


[[Page 52479]]

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Part II

Postal Service

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39 CFR Part 111

Domestic Mail Manual to Implement Docket No. R2000-1, Proposed Changes;
Proposed Rule

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POSTAL SERVICE

39 CFR Part 111


Proposed Changes to the Domestic Mail Manual to Implement Docket
No. R2000-1

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: On January 12, 2000, the United States Postal Service, in
conformance with sections 3622 and 3623 of the Postal Reorganization
Act (39 U.S.C. 101 et seq.), filed a request for a recommended decision
by the Postal Rate Commission (PRC) on proposed rate, fee, and
classification changes. The PRC designated this filing as Docket No.
R2000-1. The PRC issued a notice of filing in Order No. 1279 on January
14, 2000.
    This proposed rule provides information on the implementing rules
for the rate, fee, and classification changes that the Postal Service
proposes to adopt if the PRC's recommended decision on R2000-1 is
consistent with the Postal Service's request and if the Governors of
the Postal Service, acting pursuant to 39 U.S.C. 3625, approve that
recommended decision.

DATES: Comments must be received on or before October 2, 2000.

ADDRESSES: Mail or deliver written comments to the Manager, Mail
Preparation and Standards, USPS Headquarters, 475 L'Enfant Plaza SW,
Room 6800, Washington DC 20260-2405. Fax: 202-268-4336. Copies of all
written comments will be available for inspection and photocopying
between 9 a.m. and 4 p.m., Monday through Friday, at USPS Headquarters
Library, 475 L'Enfant Plaza SW, 11th Floor N, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Karen Magazino, 202-268-3854 (for
information on Express Mail, First-Class Mail, and Priority Mail); Joel
Walker, 202-268-3340 (for information on Periodicals); Lynn Martin,
202-268-6351 (for information on Standard Mail); Paul Lettman, 202-268-
6261 (for information on Parcel Post, Media Mail, and Library Mail);
Thomas DeVaughan, 202-268-4491, or Lynn Martin, 202-268-6351 (for
information on Bound Printed Matter); Thomas DeVaughan, 202-268-4491,
or Anne Emmerth, 202-268-2363 (for information on special services);
Anne Emmerth, 202-268-2363 (for information on post office boxes);
Carrie Bornitz, 202-268-6797 (for information on Signature
Confirmation). General contact for all subjects is Lynn Martin, 202-
268-6351.

SUPPLEMENTARY INFORMATION: The Postal Service's request in Docket No.
R2000-1 includes major classification and rate structure changes and
increases in most existing rate and fee categories. The proposed major
classification changes and rate structure changes are as follows:
    (1) For Priority Mail, a separate price for pieces weighing 1 pound
or less would be added.
    (2) For First-Class Mail automation flats, the current 3/5-digit
presort rate would be replaced with a separate 5-digit rate and a
separate 3-digit rate.
    (3) For Periodicals, based on an anticipated legislative change,
the Regular, Nonprofit, and Classroom subclasses will be merged into a
new ``Outside-County'' subclass. The preferred nature of Nonprofit and
Classroom publications would be recognized by applying a 5% discount
off of the total computation of Outside-County postage, except that the
discount would not apply to postage for advertising pounds.
Furthermore, the 5% discount would not apply to commingled
nonsubscriber, nonrequester, complimentary, and sample copies in excess
of the 10% allowance under Domestic Mail Classification Schedule (DMCS)
sections 412.34 and 413.42, or to Science-of-Agriculture mail.
    (4) For Periodicals, physical restrictions would be added to
specify that a mailpiece may not weigh more than 70 pounds or measure
more than 108 inches in length and girth combined, and that additional
size limitations may apply to pieces mailed at individual rate
categories.
    (5) For Standard Mail (A), which would be renamed Standard Mail, a
new barcoded discount would be available for machinable parcels that
are subject to the residual shape surcharge and that are entered as
Regular or Nonprofit subclass mail. (Mail entered at carrier route
rates would not be eligible.)
    (6) For Standard Mail (A), which would be renamed Standard Mail, a
separate residual shape surcharge would be added for Enhanced Carrier
Route and Nonprofit Enhanced Carrier route pieces. This surcharge would
be lower than the residual shape surcharge for Regular and Nonprofit
mail.
    (7) For Standard Mail (A), which would be renamed Standard Mail,
all automation letters would have a weight limit of 3.5 ounces. All
other Standard Mail letters would be subject to a maximum weight limit
of 3.3 ounces for minimum per-piece rates.
    (8) Standard Mail (B) would be renamed Package Services. Package
Services would include Parcel Post, Bound Printed Matter, Media Mail
(formerly Special Standard Mail), and Library Mail.
    (9) For Parcel Post, the minimum 16-ounce weight requirement would
be removed. Pieces weighing less than 1 pound would be subject to the
full, applicable rate for a piece weighing 2 pounds.
    (10) For Parcel Post, a nonmachinable surcharge would be added for
intra-BMC/ASF rate mail and a separate nonmachinable surcharge would be
added for destination bulk mail center (DBMC) rate mail.
    (11) For Bound Printed Matter (BPM), the minimum 16-ounce weight
requirement would be removed. Presorted and Carrier Route rate pieces
weighing less than 1 pound would be subject to the full, applicable
rate for a piece weighing 1 pound and single-piece rate BPM pieces
weighing less than 1 pound would be subject to the full, applicable
rate for a piece weighing 1.5 pounds.
    (12) For all Bound Printed Matter, the separate local zone rate
category would be removed. Mail for local zones would be subject to the
same rates as mail for zones 1 and 2.
    (13) For Bound Printed Matter, three destination entry discounts
would be added for mail entered at the destination bulk mail center
(DBMC), destination sectional center facility (DSCF), and destination
delivery unit (DDU).
    (14) Special Standard Mail would be renamed Media Mail.
    (15) For Bulk Parcel Return Service, mailers would be required to
pay an annual accounting fee.
    (16) For Collect on Delivery (COD), the limit for collection would
increase from $600 to $1,000.
    (17) For Delivery Confirmation, electronic option Delivery
Confirmation would be extended to Standard Mail (formerly Standard Mail
(A)) pieces that are subject to the residual shape surcharge.
    (18) For insurance, bulk insurance service would be extended to
Standard Mail (formerly Standard Mail (A)) pieces that are subject to
the residual shape surcharge.
    (19) For merchandise return service, the per-piece (transaction)
fee for pieces returned to the permit holder would be removed, and
permit holders would be required to pay an annual accounting fee.
Senders (those who use MRS labels to return a parcel to the permit
holder) would be permitted to add insurance to a MRS piece at their own
discretion and expense. No other special services could be added by the
sender.

[[Page 52481]]

    (20) For meter service, the name of the service ``on-site meter
settings'' would be changed to ``on-site meter service.'' The
``additional meters'' fee category would be replaced with a ``meter
reset and/or examined'' fee category that would be applicable to each
meter reset or examined, including the first meter. Secured postage
meters would be exempt from the checking in/out fee.
    (21) For post office boxes, the box fee groups would be realigned
to better match fees with the costs of providing post office box
service. A nonrefundable fee would be added for replacing or
duplicating post office box keys. A nonrefundable fee would be added
for changing a post office box lock.
    (22) For business reply mail, a new ``high-volume'' fee category is
added for Qualified Business Reply Mail (QBRM). The high-volume fee
category would give permit holders the option of paying a quarterly fee
(in addition to the annual accounting fee) and thereby qualify for a
lower per piece charge.
    (23) For return receipt for merchandise, service would be extended
to Standard Mail (formerly Standard Mail (A)) pieces that are subject
to the residual shape surcharge. Return receipt for merchandise service
also would be extended to unnumbered insured items.
    (24) For Shipper Paid Forwarding, an annual accounting fee would be
added for mailers who choose to pay forwarding charges through an
advance deposit account.
    (25) A new classification for Signature Confirmation service has
been proposed.
    (26) For stamped envelopes, the current three categories of stamped
envelopes would be realigned into two categories: household (basic) and
special.
    Part A of this proposed rule summarizes the proposed revisions to
the Domestic Mail Manual (DMM) necessary to implement R2000-1 by class
of mail and special service category. Part B summarizes the proposed
changes by DMM module and section. The actual proposed changes to the
DMM follow at the end of this proposed rule.
    Comments are solicited on the implementing DMM standards that
appear at the end of this proposed rule. As information, the DMM
language in this proposed rule incorporates revisions to the DMM from
four previously published Federal Register final rules that also will
take effect on the date that coincides with implementation of the rates
resulting from the R2000-1 rate case. These final rules are:
    1. ``Sack Preparation Changes for Periodicals Nonletter-Size Pieces
and Periodicals Prepared on Pallets'' published on July 28, 2000 (65 FR
46361).
    2. ``Line-of-Travel Sequencing for Basic Carrier Route
Periodicals'' published on July 28, 2000 (65 FR 46363).
    3. ``Preparation Changes for Palletized Standard Mail (A) and Bound
Printed Matter and for Standard Mail (A) and Standard Mail (B) Claimed
at DBMC Rates'' published on August 8, 2000 (65 FR 48385).
    4. ``Domestic Mail Manual Changes for Sacking and Palletizing
Periodicals Nonletters and Standard Mail (A) Flats, for Traying First-
Class Flats, and for Labeling Pallets'' published on August 16, 2000
(65 FR 50054).
    Accordingly, the numbering and the language of the DMM sections in
this proposed rule have been synchronized with these final rules and
may not match the numbering and language in current DMM Issue 55.
    Although proposed rates, rate categories, and rate structures are
included in this language, they are outside the scope of this
rulemaking process because they are still under review by the Postal
Rate Commission. For example, comments on whether destination entry
rates for Bound Printed Matter should be offered, or offered at a
different rate, would not be appropriate. However, comments suggesting
changes to the way the Postal Service implements standards for
destination entry Bound Printed Matter would, however, be appropriate.
    Similarly, comments on the provisions contained in the four Federal
Register notices listed above are outside the scope of this rulemaking
because they have already been subject to the comment process and
published as final rules.

A. Summary of Proposed Changes by Class of Mail

1. Express Mail

a. Express Mail Rate Highlights
    Overall, Express Mail rates are proposed to increase by an average
of 3.8%. Moderate increases are proposed for all Express Mail rates,
except for a $0.30 decrease in the 1/2-pound rates for Custom Designed
Service and for Next Day and Second Day Post Office to Post Office
Service. The fee for pickup service is proposed to increase from $8.25
to $10.25 per occurrence. The fee for delivery stops (Custom Designed
Service only) is proposed to increase from $8.25 to $10.25. The fee for
every $100 increment of additional insurance desired above the standard
$500 of coverage would increase from $0.95 to $1.00.
b. Express Mail Rate Structure
    There are no proposed changes to the rate structure of Express
Mail.
c. Express Mail Preparation Changes
    There are no proposed changes to mail preparation requirements for
Express Mail.

2. Priority Mail

a. Priority Mail Rate Highlights
    Overall, Priority Mail rates are proposed to increase by an average
of 15%. The fee for pickup service is proposed to increase from $8.25
to $10.25 per occurrence.
b. Priority Mail Rate Structure
(1) One Pound or Less Priority Mail Rate
    A unique Priority Mail rate is proposed for pieces weighing 1 pound
or less. Currently all Priority Mail pieces weighing 2 pounds or less
pay the same rate. The proposed 1-pound Priority Mail rate is $0.35
more than the proposed First-Class Mail rate ($3.10) for a 13-ounce
piece. Mail that is placed in a Priority Mail flat-rate envelope will
continue to be charged the 2-pound rate even if the actual weight is 1
pound or less.
(2) Keys and Identification Devices
    It is proposed that keys and identification devices that weigh more
than 13 ounces but not more than 1 pound will be eligible for the new
1-pound Priority Mail rate plus the fee. The fee for keys and
identification devices is proposed to increase from $0.30 to $0.35.
c. Priority Mail Preparation Changes
    There are no proposed changes to mail preparation requirements for
Priority Mail.
3. First-Class Mail
a. First-Class Mail Rate Highlights
    Overall, First-Class Mail rates are proposed to increase by an
average of 3.6%. It is proposed that the single-piece first-ounce
letter rate be increased by only one cent, from $0.33 to $0.34, and
that the rate for additional ounces increases by only one cent from
$0.22 to $0.23. The Postal Service also is proposing a $0.01 increase
in the single-piece card rate from $0.20 to $0.21.
    It is proposed that the first-ounce letter rate for Qualified
Business Reply Mail (QBRM) increase from $0.30 to $0.31, and that the
card rate for QBRM remain the same at $0.18.

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    The nonstandard surcharge for single-piece rate mail weighing one
ounce or less would remain the same at $0.11. The nonstandard surcharge
for Presorted rate and Automation rate pieces would remain the same at
$0.05.
    Small increases are proposed for Automation and Presorted rates.
The Postal Service proposes a $0.01 increase in the basic automation
flat rate, from $0.30 to $0.31. The combined 3/5-digit rate category
for automation flats would be eliminated. It is proposed that new and
separate automated rate categories for 3-digit automation flats and for
5-digit automation flats be implemented. The annual presort mailing fee
is proposed to increase from $100 to $125.
b. First-Class Mail Rate Structure
    It is proposed to split the current automation flats 3/5-digit rate
into two separate rates: a 5-digit automation rate and a 3-digit
automation rate.
c. First-Class Mail Preparation Changes
(1) Automation Flats (DMM M011, M030, M033, M820, M910)
    The Postal Service is proposing to change the standards for
preparation of 5-digit packages and 5-digit trays of automation flats
under DMM 820 from required levels of sortation to optional levels of
sortation. This is supported by the new rate structure that provides
separate 5-digit and 3-digit rates for automation flats. All other
current mail preparation requirements would remain the same.
    It is also proposed to add a new tray-based presort option for
automation flats. When using this option, mailers would not need to
prepare automation flats in 5-digit, 3-digit, ADC and mixed ADC
packages. Instead, mailers would prepare flat trays to 5-digit
(optional), 3-digit, ADC, and mixed ADC destinations whenever there
were 90 or more pieces to a presort destination. Ninety is the average
number of pieces that fills a flat tray up to the bottom of the
handholds when at least a single stack of mail is lying flat on the
bottom of the tray. When there are 90 or more pieces for a presort
destination, mailers would be required to physically fill flat tray(s)
for that destination and would be allowed one less-than-full tray or
one overflow tray per presort destination. Preparation of 5-digit trays
also would be optional under this tray-based preparation option. Rates
would be based on the sortation level of the tray to which a piece is
sorted. If this proposal is adopted, mailers choosing to prepare their
mail using this option would not be eligible to prepare their mail as
outlined in new M910 which will also go into effect when the rates
resulting from the R2000-1 rate case are implemented. (M910 will permit
co-traying of packages from automation rate mailings and packages from
Presorted rate mailings that are part of the same mailing job and meet
other criteria.)
(2) Tray Containers (DMM M033)
    For clarification, it is proposed to add information to M033.1.2 to
show that the lids required to be placed on First-Class Mail flat trays
must be placed on the tray green side up prior to strapping under
M033.1.5b.

4. Periodicals

a. Periodicals Rate Highlights
    The average increase for Periodicals in the current proposal is
12.6%. Outside-County Periodicals would have an average increase of
12.7% while Within-County Periodicals would have an average increase of
8.6%. However, as the result of a joint effort by the Postal Service
and the Periodicals industry, further cost savings were identified that
have the potential to reduce the proposed increases. The proposed rates
assume that the Revenue Forgone Reform Act (RFRA) is amended.
    It is proposed to combine two of the preferred subclasses
(Nonprofit and Classroom) with the Regular subclass to form an Outside-
County subclass with one set of rates. Nonprofit and Classroom
publications would receive a 5% discount on total Outside-County
postage, excluding the postage for advertising pounds. The Within-
County subclass would remain a separate subclass with a separate set of
rates.
    It is proposed that the nonadvertising percentage per-piece
discount, the delivery unit (Outside-County and In-county) per-piece
discounts, and the SCF per-piece discount will increase. The Outside-
County, Science-of-Agriculture, and In-County pound rates will increase
along with all per-piece rates for both subclasses (Outside-County and
Within County). See DMM R200 for individual proposed rates and
discounts.
    It is proposed that the fee for original entry would increase from
$305 to $350. The re-entry and newsagents fees will decrease from $50
to $40.
b. Periodicals Rate Structure
    Regular, Nonprofit, and Classroom publications would use the same
rate schedule. Nonprofit and Classroom publications would receive a 5%
discount on total Outside-County postage, excluding the postage for
advertising pounds. The 5% discount does not apply to commingled
nonsubscriber copies in excess of the 10% allowance provided under DMM
E215. In-County rates would remain a separate rate schedule.
c. Periodicals Mail Preparation Changes
(1) Bundles on Pallets
    The current DMM describes a ``bundle'' as a group of packages
secured together as a unit that equates to a sack. The current DMM
provides both for preparation of packages on pallets under DMM M045.2.0
and for preparation of bundles on pallets under DMM M045.3.0. The
Postal Service is not aware of any mailers that currently opt to
prepare bundles on pallets. Accordingly, the Postal Service is
proposing to delete the option to prepare bundles on pallets under
current DMM M045.3.0. The provisions for preparing packages on pallets
would remain in DMM M045.2.0.
(2) Previous Rulemakings
    Mailers are reminded that three final rule Federal Register notices
have previously been published that set forth required and optional
preparation requirements for Periodicals that also will be effective on
the date that the rates resulting from the R2000-1 rate case are
implemented. These are: (1) ``Sack Preparation Changes for Periodicals
Nonletter-Size Pieces and Periodicals Prepared on Pallets'' published
on July 28, 2000 (65 FR 46361), (2) ``Line-of-Travel Sequencing for
Basic Carrier Route Periodicals'' published on July 28, 2000 (65 FR
46363), and (3) ``Domestic Mail Manual Changes for Sacking and
Palletizing Periodicals Nonletters and Standard Mail (A) Flats, for
Traying First-Class Flats, and for Labeling Pallets'' published August
16, 2000 (65 FR 50054).

5. Standard Mail (Formerly Standard Mail (A))

a. Standard Mail Rate Highlights
    The overall average proposed rate increase is 7.7%. Regular rates
are proposed to increase by an average of 9.4%. Rates for commercial
Enhanced Carrier Route (ECR) mail are proposed to increase by an
average of 4.9%. Rates for Nonprofit mail are proposed to increase by
an average of 14.8%. Rates for Nonprofit Enhanced Carrier Route are
proposed to increase by an average of 5.6%. The proposed rates for
Nonprofit and Nonprofit Enhanced Carrier Route are based on anticipated
changes to the Revenue Forgone Reform Act (RFRA). However, subsequent
to the

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filing of the Request (for rate increases), mailer associations and the
Postal Service engaged in further discussions concerning nonprofit
rates. Responsible committees in Congress have since drafted
legislation that would change the RFRA. This legislation would provide
that nonprofit rates be set so that the estimated average revenue per
piece received by the Postal Service from each subclass of nonprofit
Standard Mail would be equal, as nearly as practicable, to 60% of the
estimated average revenue per piece to be received from the most
closely corresponding commercial subclass of mail. If the Postal
Service had followed the mechanism in the legislation introduced in
Congress in developing its proposal, the Postal Service would have
proposed an average rate increase of 4.8% for Nonprofit and 17.3% for
Nonprofit Enhanced Carrier Route.
    Increased discounts are proposed for destination entry rate mail
(DBMC, DSCF, and DDU). The annual presort mailing fee would increase
from $100 to $125.
b. Standard Mail Rate Structure
    It is proposed that automation letter mail would be subject to a
weight limit of 3.5 ounces (.2188 pound). All other Standard Mail
letters and non-letters would be subject to a weight limit of 3.3
ounces (.2063 pound) for the minimum per-piece charge.
    A new barcoded discount of $0.03 is proposed for Standard Mail
machinable parcels that are subject to the residual shape surcharge and
that meet other preparation requirements. This discount would be
available only for the Regular and Nonprofit Standard Mail subclasses
(it would not be available for pieces mailed at the Enhanced Carrier
Route and Nonprofit Enhanced Carrier Route subclasses).
    Two different residual shape surcharges are proposed. Enhanced
Carrier Route and Nonprofit Enhanced Carrier Route mail would have a
residual shape surcharge of $0.15, and Regular and Nonprofit mail would
have a residual shape surcharge of $0.18.
    It is proposed to allow use of return receipt for merchandise, bulk
insurance, and electronic option Delivery Confirmation with Standard
Mail parcels that are subject to the residual shape surcharge.
c. Standard Mail Preparation Changes
(1) Name Change and DMM Restructuring
    The Postal Service proposes to change the name of this mail class
from ``Standard Mail (A)'' to ``Standard Mail.'' Throughout this
proposed rule, ``Standard Mail'' is used consistently in the DMM text
to indicate the class formerly known as ``Standard Mail (A).'' For
brevity, not all sections that had only name changes were reproduced in
this final rule. This change will, however, be implemented throughout
all of DMM Issue 56, which will transmit the final implementing rules
for R2000-1.
    DMM sections C600, D600, E600, P600, and R600 would contain
standards for only Standard Mail. Matter in these sections that contain
standards for Package Services mail would be moved into new sections
under C700, D700, E700, P700, and R700, respectively. (Former P700,
that contains information on special postage payment systems, would be
renumbered as P900.)
    Matter pertaining only to Standard Mail in former E611 and E612 has
been consolidated and reorganized into new E610. E620 and E630 have
been reorganized so that E620 pertains to Presorted rate Standard Mail
and E630 pertains to Enhanced Carrier Route Standard Mail.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M600)
    Currently, the contents line of sack and pallet labels for
irregular parcel and machinable parcel mailings must show ``STD A'' or
``STD B'' as applicable for the class being mailed. Because of the name
changes of ``Standard Mail (A)'' to ``Standard Mail'' and of ``Standard
Mail (B)'' to ``Package Services,'' the use of ``STD A'' on ``Standard
Mail'' sack and pallet labels for irregular parcel and machinable
parcel mailings would be changed to ``STD'' (Package Services labels
would use ``PSVC'').
(3) Weight Limit for Automation Letters (DMM C810)
    The maximum weight for heavy letters that may qualify for
automation letter rates would be increased to 3.5 ounces (.2188 pound).
Pieces of automation heavy letters weighing over 3 ounces up to 3.5
ounces would be required to meet the additional preparation
requirements currently in effect for heavy letters in DMM C810 and
C840.
    Because it is proposed that automation letters have a weight limit
of 3.5 ounces (.2188 pound) and other mail be subject to a maximum of
3.3 ounces (.2063 pound) for the minimum per-piece rates, some mailers
could enter a mailing job that consists of an automation letters
mailing weighing over 3.3 ounces (.2063 pound) for which the pieces
would be subject to the automation minimum per-piece rates and a
mailing(s) of Enhanced Carrier Route and/or Presorted rate mail for
which the pieces would be subject to the piece/pound rates. Such
mailing jobs may continue to be reported on the same postage statement.
(4) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a
would change to not less than 6 inches long, 3 inches high, \1/4\ inch
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick
would be subject to the 3\1/2\-inch height minimum under C010.) The
current minimum weight is 8 ounces unless certain other conditions are
met. Some parcels may be successfully processed on BMC parcel sorters
although they do not conform to the machinability standards in DMM
C050.4.1. If this is the case, a BMC plant manager may authorize a
mailer to enter such parcels as machinable parcels if the parcels are
tested on BMC parcel sorters and prove to be machinable. Such an
authorization will only apply to mail that is both entered at a post
office within the service area of the authorizing BMC area and is for
delivery to an address within the service area of that BMC. These
changes also would apply to Package Services mail.
(5) Preparation of Bundles
    The current DMM describes a ``bundle'' as a group of packages
secured together as a unit that equates to a sack. The current DMM
provides both for preparation of packages on pallets under DMM M045.2.0
and for preparation of bundles on pallets under DMM M045.3.0. The
Postal Service is not aware of any mailers that currently opt to
prepare bundles on pallets. Accordingly, the Postal Service is
proposing to delete the option to prepare bundles on pallets under
current DMM M045.3.0. The provisions for preparing packages on pallets
would remain in DMM M045.2.0.
    The current DMM also provides for preparation of bedloaded bundles
of Presorted and carrier route rate mail under DMM M610.6.0 and
M620.6.0, respectively. Such preparation requires Rates and
Classification Service Center (RCSC) authorization. The records of the
Postal Service currently indicate that there are no mailers authorized
to prepare bedloaded bundles in the manner described in the DMM.
Because of this, and because bedloaded bundles are generally not cost-
efficient for the Postal Service to handle and process, the Postal
Service is proposing to delete the options to prepare bedloaded

[[Page 52484]]

bundles under DMM M610.6.0 and M620.6.0.
(6) Machinable Parcel Barcoded Discount (DMM C850, E610, E620, P600)
    The new machinable parcel barcoded discount of $0.03 would apply to
machinable parcels (as defined in DMM C050) for which the residual
shape surcharge (RSS) is paid and that bear a correct, readable 5-digit
barcode under C850 for the ZIP Code shown in the delivery address and
are prepared as machinable parcels under M045 or M610. Machinable
parcels prepared in 5-digit sacks or on 5-digit pallets entered at DSCF
rates may qualify for the barcoded discount even though such pieces
will not be processed using BMC barcode scanning equipment. Otherwise,
rates for 5-digit sorted machinable parcels entered at DSCF rates could
be higher than for BMC sorted machinable parcels that were entered at
DBMC rates and which also qualified for the barcoded discount.
Machinable parcels entered at DBMC rates may claim the machinable
parcel barcoded discount only if they are not entered at an ASF. An
exception is that properly prepared machinable pieces of DBMC rate mail
entered at the Phoenix, Arizona, ASF may claim the barcoded discount
because that facility uses barcode scanning equipment. The machinable
parcel barcoded discount is not available for pieces mailed at the
Enhanced Carrier Route or Nonprofit Enhanced Carrier Route subclasses.
    If all pieces in a mailing are eligible for the machinable parcel
barcoded discount under E610 and E620, then the mailing may be paid
with meter stamps, permit imprint, or precanceled stamps under the
applicable standards. If fewer than 100 percent of the pieces in the
mailing are eligible for the machinable parcel barcoded discount, then
payment with precanceled stamps would not be permitted; metered postage
would be permissible for use only if exact postage was affixed to each
piece in the mailing; and use of permit imprints would be permitted
only under a manifest mailing system (P910).
(7) Special Services with Standard Mail (DMM E610, P600)
    It is proposed that Standard Mail that is subject to the residual
shape surcharge (pieces prepared as parcels or that are not letter-size
or flat-size as defined in DMM C050) may receive the following
additional special services upon payment of the appropriate fees: bulk
insurance, return receipt for merchandise, and electronic option
Delivery Confirmation. Other Standard Mail would not be eligible for
any special services. Mail prepared with detached address labels under
A060 and mail using Bulk Parcel Return Service (BPRS) also would not be
eligible for any special services.
    Mailpieces for which one or more of these special services are
requested would be required to bear a return address under A010 and
would be required to bear an ancillary service endorsement that results
in return of the mailpiece to the sender if undeliverable as addressed
(Address Service Requested, Forwarding Service Requested, or Return
Service Requested).
    Mailings for which bulk insurance is requested would be required to
pay postage and fees through a manifest mailing system (P910).
    For electronic option Delivery Confirmation, the following postage
payment requirements would apply. If electronic option Delivery
Confirmation is requested for all the pieces in the mailing and the
mailing consists of pieces of identical weight, then postage may be
paid with metered postage or permit imprints under the existing
standards in P600.2.0 and P600.3.0 (as restructured in this proposed
rule). However, if Delivery Confirmation is not requested for all
pieces in the mailing, or if the pieces are not identical weight, then
either the exact metered postage must be affixed to each piece or a
manifest mailing system must be used for permit imprint mail under
P910. Precanceled stamps may not be used for postage payment on pieces
with Delivery Confirmation (see current DMM S918.1.5).
    It is proposed that, if return receipt for merchandise is requested
for all the pieces in the mailing and the mailing consists of pieces of
identical weight, then postage must be paid with metered postage or
permit imprints under the applicable standards in DMM P600.2.0 and
P600.3.0. If return receipt for merchandise is not requested for all of
the pieces in the mailing, or if the pieces are not identical weight,
then either the exact metered postage must be affixed to each piece, or
a manifest mailing system must be used for permit imprint mail under
P910. Precanceled stamps would not be permitted for use with return
receipt for merchandise.

6. Package Services (formerly Standard Mail (B))--General

a. Name Change and DMM Restructuring
    The Postal Service proposes to change the name of this mail class
from ``Standard Mail (B)'' to ``Package Services.'' Package Services
would include Parcel Post, Bound Printed Matter, Media Mail (formerly
Special Standard Mail) and Library Mail.
    The standards in current DMM sections C600, D600, E600, P600, and
R600 that pertain to Package Services mail would be moved into new
sections under DMM C700, D700, E700, P700, and R700. Former P700, which
contains information on special postage payment systems would be
renumbered as P900.
    The standards for Package Services mail contained in current DMM
E611 and E613 have been consolidated and reorganized into new E710.
Current DMM E630 and E650, which contain eligibility standards for
Package Services would be moved into new DMM E700. The four subclasses
of Package Services mail would each have their own eligibility
sections: DMM E711 for Parcel Post; DMM E712 for Bound Printed Matter;
DMM E713 for Media Mail (formerly Special Standard Mail); and DMM E714
for Library Mail. Information pertaining to eligibility of Package
Services for destination entry rates would be moved to DMM E750.
Current DMM M630 would be moved and reorganized into new DMM M710 for
Parcel Post, DMM M720 for Bound Printed Matter, DMM M730 for Media
Mail, and DMM M740 for Library Mail.
b. Combining Different Subclasses of Package Services to Qualify for
DSCF and DDU Rates
    New provisions are added in DMM E753 that allow mailers to combine
different subclasses of Package Services machinable and irregular
parcels in the same 5-digit sack or on the same 5-digit pallet to
qualify for DSCF and DDU rates. For sack preparation, 10 or more
parcels of any combination of Package Services subclasses, except for
mail at Carrier Route Bound Printed Matter rates, would be allowed to
be placed in the same 5-digit sack and entered at destination SCFs or
at destination delivery units. For pallet preparation, 5-digit pallets
that contain either 50 pieces and 250 pounds or that contain at least
36 inches of Package Services parcels (any combination of subclasses,
except mail at Carrier Route Bound Printed Matter rates) may be
prepared and entered at destination SCFs or at destination delivery
units. Any Parcel Post pieces and any Presorted Bound Printed Matter in
such sacks or on such pallets would be eligible for the appropriate
DSCF or DDU rate provided all other eligibility requirements for the
applicable destination entry rate are met. Media Mail and Library Mail
pieces would be subject to their respective single-piece or 5-digit
rates

[[Page 52485]]

depending upon whether the 500-piece minimum quantity requirement for
the 5-digit rates was met for each subclass. See E753 for a full
description of the requirements and rate applicability.

7. Parcel Post

a. Parcel Post Rate Highlights
    Parcel Post rates are proposed to increase by an average of 1.3%.
It is proposed to increase the nonmachinable surcharge for Inter-BMC
Parcel Post from $1.65 to $1.79 per parcel. The Parcel Post Origin BMC
Presort and BMC Presort discounts would increase from $0.57 to $0.93
per piece and from $0.22 to $0.23 per piece, respectively. The barcoded
discount for qualifying Parcel Post machinable parcels would remain at
$0.03 per piece. The annual destination entry fee for Parcel Select is
proposed to increase from $100 to $125.
b. Parcel Post Rate Structure
    It is proposed that pieces weighing less than 16 ounces would be
eligible for Parcel Post rates; however, there are no proposed rates
for pieces less than 2 pounds. Therefore, if a piece weighs less than 2
pounds, it will be charged the rate that would apply to a 2-pound
parcel.
    It is proposed to add a $0.40 nonmachinable surcharge for Intra-BMC
Parcel Post and to add a $0.45 nonmachinable surcharge to DBMC Parcel
Select.
c. Parcel Post Mail Preparation Changes
(1) Rate Markings (DMM M012 and M710)
    There are no proposed changes to the marking requirements for
Parcel Post and Parcel Select.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M710)
    It is proposed to change the abbreviation ``STD'' or ``STD B'' on
the contents line of sack and pallet labels for Parcel Post to ``PSVC''
(an abbreviation for Package Services). Labels for 5-digit sacks and
pallets prepared to qualify for DSCF and DDU rates are further revised
to add the processing category ``PARCELS'' to the contents line to read
``PSVC PARCELS 5D.'' For containers of combined Package Services
parcels, line 2 also would read ``PSVC PARCELS 5D.''
(3) Dimensions for Machinable Parcels (DMM C050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a
would change to not less than 6 inches long, 3 inches high, \1/4\ inch
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick
would be subject to the 3\1/2\-inch height minimum under C010.) The
current minimum weight is 8 ounces unless certain other conditions are
met. Some parcels may be successfully processed on BMC parcel sorters
although they do not conform to the machinability standards in DMM
C050.4.1. If this is the case, a BMC plant manager may authorize a
mailer to enter such parcels as machinable parcels if the parcels are
tested on BMC parcel sorters and prove to be machinable. Such an
authorization only applies to mail that is both entered at a post
office within the authorizing BMC's service area and is for delivery to
an address within that BMC's service area. These changes also would
apply to Standard mail.
(4) Machinable Parcel Preparation Requirements (DMM M045 and M710)
    The rules for sacking and palletizing Parcel Post machinable
parcels are clarified to point out that they are optional preparation
methods for Parcel Post. In addition, the sacking rules are modified to
delete the 1,000 cubic inch option for preparing sacks of machinable
parcels. If Parcel Post mailers choose to sack under the machinable
parcel preparation standards, sacks for a 5-digit, ASF, or BMC
destination would have a minimum volume requirement of 10 pieces or 20
pounds.
(5) Postage Payment (P700)
    P700 would be clarified to indicate that precanceled stamps must
not be used for payment of any Parcel Post mail, including matter at
single-piece rates.

8. Bound Printed Matter

a. Bound Printed Matter Rate Highlights
    Bound Printed Matter (BPM) rates are proposed to increase by an
average of 18.1%. New destination entry discounts for Presorted rate
and Carrier Route rate mailings of Bound Printed Matter are being
offered to encourage the deposit of mail at the destination BMC, SCF,
or delivery unit. An annual destination entry mailing fee for mail
entered at destination entry rates of $125 is proposed. The barcoded
discount for qualifying Presorted Bound Printed Matter machinable
parcels would remain at $0.03 per piece.
b. Bound Printed Matter Rate Structure
    The local zone rate category would be eliminated for Bound Printed
Matter. Destination entry rates are proposed for Presorted and Carrier
Route Bound Printed Matter entered at destination BMCs, SCFs, and
delivery units. To qualify for destination entry rates mailers would
need to pay the annual destination entry mailing fee described above
and meet the preparation requirements in DMM E752 that are summarized
below. There are no destination entry rates for single-piece Bound
Printed Matter.
    Another major change is that pieces weighing less than 16 ounces
would be eligible for Bound Printed Matter rates; however, there are no
proposed rates for pieces less than 1.5 pounds (for single piece) and 1
pound (for Presorted and Carrier Route). Therefore, single-piece Bound
Printed Matter that weighs less than 1 pound will be charged the 1.5-
pound rate and Presorted and Carrier Route Bound Printed Matter that
weighs less than 1 pound will be charged the full 1-pound rate, plus
the applicable per-piece charge.
c. Bound Printed Matter Mail Preparation Changes
(1) Rate Markings (DMM M012 and M720)
    Two changes are proposed to the current marking requirements for
Bound Printed Matter. The first would give mailers the option to use
the abbreviation ``BPM'' as the basic (sub-class) marking that must
appear in the postage area on each piece. The second would be to
prohibit use of the ``Presorted Standard'' (or ``PRSRT STD'') marking
on Presorted and Carrier Route Bound Printed Matter after a 1-year
grace period. Because of the renaming of Standard Mail (B) to Package
Services, ``Standard'' and ``STD'' would no longer be applicable as a
class of mail description for Bound Printed Matter. Mailers would have
until January 1, 2002 to discontinue use of the ``Presorted Standard''
(or ``PRSRT STD'') marking.
(2) Sack and Pallet Labels (DMM M031, M032, M045, M700)
    It is proposed to change the abbreviation ``STD'' or ``STD B'' on
the contents line of sack and pallet labels for Bound Printed Matter to
``PSVC'' (an abbreviation for Package Services).
(3) Address Matching Requirements for Presorted Bound Printed Matter
(DMM E712)
    The Postal Service is proposing that all 5-digit ZIP Codes included
in addresses on pieces claimed at Presorted Bound Printed Matter rates
must be verified and corrected within 12 months before the mailing date
using a USPS-approved method. The mailer must certify that this
standard has been met when the mail is presented to the USPS. This
standard applies to each

[[Page 52486]]

address individually, not to a specific list or mailing. See E712.3.1.
(4) Dimensions for Machinable Parcels (DMM M050)
    The minimum dimensions for a machinable parcel in DMM C050.4.1a
would change to not less than 6 inches long, 3 inches high, \1/4\ inch
thick, and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick
would be subject to the 3\1/2\-inch height minimum under C010.) The
current minimum weight is 8 ounces unless certain other conditions are
met. Some parcels may be successfully processed on BMC parcel sorters
although they do not conform to the machinability standards in DMM
C050.4.1. If this is the case, a BMC plant manager may authorize a
mailer to enter such parcels as machinable parcels if the parcels are
tested on BMC parcel sorters and prove to be machinable. Such an
authorization only applies to mail that is both entered at a post
office within the authorizing BMC's service area and is for delivery to
an address within that BMC's service area. These changes also would
apply to Standard mail.
(5) Sortation for Sacked Presorted Bound Printed Matter (DMM M722)
    It is proposed to require all flats and all irregular parcels that
weigh 10 pounds or less to be prepared in packages prior to sacking.
Machinable parcels would still be placed directly in sacks without
packaging, and irregular parcels weighing more than 10 pounds would be
placed into sacks without packaging. The provision for preparing sacks
to a particular presort destination based on a 1,000 cubic inch minimum
criteria would be deleted.
    For flats prepared in sacks, mailers would be required to prepare
packages whenever there are at least 10 pieces or 10 pounds of mail,
whichever occurs first, for a presort destination (5-digit, 3-digit,
ADC), with remaining pieces placed in mixed ADC packages. The maximum
weight of any package would be 20 pounds, except that 5-digit packages
placed in 5-digit sacks could weigh up to 40 pounds. This will allow
packages prepared in other than 5-digit sacks to be processed on small
parcel and bundle sorters (SPBSs). Each physical package would be
required to contain at least 2 addressed pieces except for mixed ADC
packages. These packages would be required to be placed in sacks
whenever there were at least 20 pieces or 20 pounds, whichever occurs
first, for a sack destination (5-digit, 3-digit, optional SCF, ADC),
with remaining packages placed in mixed ADC sacks.
    For Presorted irregular parcels, mailers would be required to
prepare the mail in packages if the individual pieces weighed 10 pounds
or less. Packages would be prepared whenever there were at least 10
pieces or 10 pounds to a presort destination, whichever occurs first.
The package destinations would be the same as for flat-size pieces (5-
digit, 3-digit, ADC, and mixed ADC). Mixed ADC packages could contain
fewer than 10 pieces or 10 pounds of mail. Sortation to ADCs would be
made using DMM L004 instead of L603 and mixed ADC sacks would be
labeled using DMM L004 instead of L604. The maximum weight of any
package would be 20 pounds, except that 5-digit packages placed in 5-
digit sacks could weigh up to 40 pounds. Each physical package would be
required to contain at least 2 addressed pieces except for mixed ADC
packages. These packages would be required to be placed in sacks
whenever there were at least 10 pieces or 20 pounds, whichever occurs
first, for a sack destination (5-digit, 3-digit, optional SCF, ADC),
with remaining packages placed in mixed ADC sacks.
    Presorted irregular parcels that weigh over 10 pounds would not be
packaged, but would be placed in 5-digit, 3-digit, optional SCF and ADC
sacks whenever there were 10 or more pieces or 20 or more pounds,
whichever occurs first, for a sack destination. Remaining pieces would
be placed in mixed ADC sacks. Sortation to ADCs would be made using DMM
L004 instead of L603 and mixed ADC sacks would be labeled using DMM
L004 instead of L604. Irregular parcel-size pieces that weigh over 10
pounds would be required to be individually enveloped, placed in a
full-length sleeve or wrapper, or be polywrapped.
    For machinable parcels, there would be no change in sortation other
than eliminating the option to use 1,000 cubic inches as a minimum
sacking criteria as described above.
(6) Sortation for Sacked Carrier Route Bound Printed Matter (DMM M020,
M723)
    For flat-size mail the basic eligibility requirement to qualify for
carrier route rates of a minimum of 10 pieces/20 pounds/1,000 cubic
inches of mail for the same carrier route would be changed to require a
minimum of 10 pieces or 20 pounds of mail prepared in a package or
packages for the same carrier route. In addition, the maximum weight of
any flat-size package will be 40 pounds. Each physical package would be
required to contain a minimum of two addressed pieces. The only
exception to a minimum two-piece package is that the last physical
package to an individual carrier route destination could contain less
than the minimum package size and could consist of a single addressed
piece provided that all other packages to that carrier route
destination meet the minimum package size and contain at least two
addressed pieces, and that the total group of pieces to that carrier
route meets the Carrier Route rate eligibility minimum in E712.
Packages of flat-sized mail would be sacked for an individual carrier
route whenever there were at least 20 pieces or 20 pounds of mail for a
carrier route. Remaining carrier route packages would be sacked in 5-
digit carrier routes sacks or, at the mailer's option, be sacked to 5-
digit scheme carrier routes sacks using L001.
    For irregular parcel-size mail the basic eligibility requirement of
at least 10 pieces or 20 pounds of mail for the same carrier route
would be retained.
    For Carrier Route irregular parcels, mailers would be required to
prepare the mail in packages if the individual pieces weighed 10 pounds
or less. Packages would be prepared whenever there were at least 10
pieces or 20 pounds of mail to an individual carrier route. The maximum
weight of any package would be 40 pounds. Each physical package would
be required to contain a minimum of two addressed pieces. The only
exception to a minimum two-piece package is that the last physical
package to an individual carrier route destination could contain less
than the minimum package size and could consist of a single addressed
piece provided that all other packages to that carrier route
destination meet the minimum package size and contain at least two
addressed pieces, and that the total group of pieces to that carrier
route meets the Carrier Route rate eligibility minimum in E712.
    Carrier route packages of irregular parcels would be required to be
placed in direct carrier route sacks when there were 10 or more pieces
or 20 or more pounds to a carrier route. Carrier route packages that
could not be placed in direct carrier route sacks would be placed in 5-
digit carrier routes sacks. Preparation of 5-digit scheme carrier
routes sacks for irregular parcels would not be permitted.
    For irregular parcels weighing over 10 pounds, the mail would not
be prepared in packages, but would be placed only in direct carrier
route sacks that each contained a minimum of 20 pounds of mail.
    Machinable parcels would be permitted to qualify for Carrier Route
Bound Printed Matter rates if placed in

[[Page 52487]]

direct carrier route sacks that each contained a minimum of 10 pieces
or 20 pounds of mail. (Machinable parcels prepared on pallets under
M045 would not be eligible for Carrier Route Bound Printed Matter
rates.)
    The provisions for marking and sortation of residual pieces that do
not qualify for the Carrier Route Bound Printed Matter rates would
change. Such pieces would no longer be sorted to carrier route and
would no longer be permitted to bear the ``Carrier Route Presort''
marking. Such residual pieces would be required to be marked and sorted
in accordance with the requirements for Presorted rate mailings and
would continue to qualify for the Presorted rates (M723.1.5).
(7) Preparation of Packages on Pallets (DMM M040 and M045)
    Flats prepared as packages on pallets would be permitted to be
palletized using scheme sort (DMM L001). For flat-size pieces prepared
in a copalletized mailing job that contains both a Presorted rate
mailing and a Carrier Route rate mailing, it is proposed that separate
5-digit pallets must be prepared for carrier route mail (optional 5-
digit scheme carrier routes and required 5-digit carrier routes
pallets) and separate 5-digit pallets must be prepared for Presorted
rate mail (optional 5-digit scheme and required 5-digit pallets).
    For irregular parcels prepared as packages on pallets, mailers
would continue to co-palletized Carrier Route and Presorted mail on the
same 5-digit pallet. Scheme sortation would not be permitted for
packages of irregular parcels on pallets.
    For flats and irregular parcels, packages would be required to be
made to a required package destination (carrier route, 5-digit, 3-
digit, ADC) whenever there were 10 or more pieces or 10 or more pounds
for a presort destination. ADC packages would be prepared using DMM
L004 instead of L603. The maximum physical package size would be 20
pounds except as follows. For Presorted rate mail, 5-digit packages
could weigh up to 40 pounds if placed on a 5-digit scheme (flats only)
or 5-digit pallet. For Carrier Route rate mail, flat-size carrier route
packages could weigh up to 40 pounds if they were placed on 5-digit
scheme carrier routes, or 5-digit carrier routes pallets, and irregular
parcel-size carrier route packages could weigh up to 40 pounds if they
are placed on a 5-digit pallet. Each physical package would be required
to contain at least 2 pieces. If individual pieces weigh more than 10
pounds and therefore could not meet both the 2-piece package minimum
and the 20-pound package maximum, they could not be prepared as
packages on pallets (except in those instances where 40-pound packages
are permitted as described above). Such pieces that weigh over 10
pounds would be required to be prepared either as machinable parcels on
pallets (eligible only for Presorted rates) or in sacks under M722
(Presorted rates) and/or M723 (Carrier Route rates). The new 20-pound
package weight limit for flats and irregular parcels will allow the
packages to be processed on small parcel and bundle sorters (SPBSs).
(8) PAVE Certification and Package Reallocation
    This proposal does not include a requirement for the use of
standardized documentation or PAVE-certified software for Bound Printed
Matter. The Postal Service plans to develop PAVE tests for Bound
Printed Matter subsequent to implementation of the R2000-1 rate case.
At that time, standardized documentation requirements will be developed
and a Federal Register proposed rule to require either standardized
documentation or use of PAVE-certified software for Presorted and
Carrier Route Bound Printed Matter will be published for comment.
Because use of optional package reallocation to protect SCF and BMC
pallets requires use of PAVE-certified software, use of package
reallocation for Bound Printed Matter will not be offered as an option
at the time the rates from the R2000-1 rate case are implemented. Use
of package reallocation will be offered for Bound Printed Matter once
use of PAVE-certified software becomes available.
(9) Bedloaded Bundles (DMM M722, M723)
    The provisions for preparing bedloaded bundles in current DMM
M630.7.0 would be removed. A ``bundle'' is described as a group of
packages secured together as a unit that equates to a sack. The Postal
Service does not believe that any mailers are currently preparing true
bedloaded ``bundles,'' although some mailers do prepare bedloaded
``packages.'' The Postal Service is proposing preparation rules for
Bound Printed Matter that are designed to reduce handling and
processing costs. Bedloaded packages or bundles are generally not cost-
efficient for the Postal Service to handle and process. Therefore the
proposed sortation rules would eliminate preparation of bedloaded
bundles, and would allow mailers to prepare bedloaded packages only for
mail that is prepared for and entered at the DDU rates. Such bedloaded
packages may weigh up to 40 pounds each. See M722 and M723.
(10) Destination Bulk Mail Center (DBMC) Rates (DMM E752)
    Destination Bulk Mail Center (DBMC) rates apply to Presorted and
Carrier Route Bound Printed Matter mailings that are prepared in any
permissible sack or pallet level and that are deposited at a BMC or
ASF, are addressed for delivery to one of the 3-digit ZIP Codes served
by the BMC or ASF where deposited that are listed in Exhibit E751.5.0,
and are placed in a sack or pallet that is labeled to the BMC or ASF
where deposited, or labeled to a postal facility within the service
area of that BMC or ASF under Exhibit E751.5.0.
    Flats or irregular parcels in an ADC sack or in a palletized ADC
package would be eligible for the DBMC rates if the ADC facility ZIP
Code (as shown in Line 1 of the corresponding sack label or the ADC
facility that is the destination of the palletized ADC package as would
be shown on an ADC sack label for that facility using DMM L004, Column
B) is within the service area of the BMC or ASF at which the sack is
deposited.
    Flats or irregular parcels in mixed ADC sacks would qualify for the
DBMC rates only if all the pieces in the sack are for the service area
of the DBMC or DASF as shown in Exhibit E751.5.0. Mailers who opt to
claim the DBMC rates for mail in mixed ADC sacks would be required to
prepare separate mixed ADC sacks for pieces eligible for and claimed at
the DBMC rate and for pieces not claimed at the DBMC rate.
    Machinable parcels palletized under M045 or sacked under M722 could
be sorted to destination BMCs under L601 or to destination BMCs and
ASFs under L601 and L602. Sortation of machinable parcels to ASFs would
be optional but would be required for mail with a 3-digit ZIP Code
prefix within the ASF service area in Exhibit E751.5.0 to be eligible
for DBMC rates. Mailers may opt to sort some or all machinable parcels
for ASF service area ZIP Codes to ASFs only when the mail will be
deposited at the respective ASFs where the DBMC rates are claimed,
under applicable volume standards, using L602. Mailers may also opt to
sort machinable parcels only to destination BMCs under L601. If
machinable parcels are sorted to only destination BMCs under L601, then
only mail for 3-digit ZIP Codes served by a BMC as listed in Exhibit
E751.5.0 would be eligible for DBMC rates (mail for 3-digit ZIP Codes
served by an ASF in Exhibit E751.5.0 sorted to the BMC

[[Page 52488]]

pallet would not eligible for DBMC rates, nor would mail for 3-digit
ZIP Codes that do not appear in Exhibit E751.5.0).
    Machinable parcels in mixed BMC sacks or on mixed BMC pallets that
are sorted to the origin BMC under M045 or M722 would be eligible for
the DBMC rates if both of the following conditions are met: 1) the
mixed BMC sack or pallet is entered at the origin BMC facility to which
it is labeled, and 2) the pieces are for 3-digit ZIP Codes listed as
eligible destination ZIP Codes for that BMC in Exhibit 5.1.
(11) Destination Sectional Center Facility (DSCF) rates (DMM E752)
    Destination Sectional Center Facility (DSCF) rates would apply to
Presorted and Carrier Route Bound Printed Matter mailings that meet all
of the following conditions:
    (a) Are eligible for and prepared to qualify for Presorted, or
Carrier Route rates.
    (b) Are deposited at an SCF listed in L005, except that machinable
parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit
E751.6.0 must be entered at the corresponding BMC facility shown in
that Exhibit (not at the SCF) unless an exception is requested and
granted. An exception to Exhibit 751.6.0 must be requested at least 15
days in advance of the mailing in writing from the area manager of
operations support who has jurisdiction over the BMC and SCF.
Exceptions, if granted, will be for a limited time.
    (c) Are addressed for delivery to one of the 3-digit ZIP Codes
served by the SCF where deposited under L005.
    (d) Are placed in a sack or on a pallet (subject to the standards
for the rate claimed) that is labeled to the DSCF where deposited, or
labeled to a postal facility within the service area of that SCF (see
L005).
    Flats in sacks for the carrier route, 5-digit carrier routes
scheme, 5-digit carrier routes, 5-digit, 3-digit, and optional SCF sort
levels would be able to claim DSCF rates under the conditions described
above. Flats on 5-digit scheme carrier routes, 5-digit carrier routes,
5-digit scheme, 5-digit, 3-digit, SCF, and ASF pallets would be able to
claim DSCF rates under the conditions described above.
    Irregular parcels in sacks for the carrier route, 5-digit carrier
routes, 5-digit, 3-digit, and optional SCF sort levels would be able to
claim DSCF rates under the conditions described above. Irregular
parcels on 5-digit, 3-digit, SCF, and ASF pallets would be able to
claim DSCF rates under the conditions described above.
    Machinable parcels in direct carrier route sacks, in 5-digit sacks,
or on 5-digit pallets would be able to claim DSCF rates under the
conditions described above. Machinable parcels prepared to claim
Carrier Route rates would be eligible for DSCF rates only when prepared
in direct carrier route sacks (machinable parcels would qualify for
Carrier Route rates only when prepared in direct carrier route sacks).
Machinable parcels on 5-digit pallets would be able to claim DSCF rates
under the conditions described above. Note that machinable parcels for
the 5-digit ZIP Codes listed in Exhibit E751.6.0 would be required to
be entered at the BMC to claim DSCF rates.
(12) Destination Delivery Unit (DDU) Rates (DMM E752)
    Destination Delivery Unit (DDU) rates apply to Presorted and
Carrier Route rate Bound Printed Matter mailings that are addressed for
delivery within the ZIP Code(s) served by the destination delivery unit
and are deposited at the appropriate destination delivery unit
facility.
    For flat-size mail, DDU rates would be available only for mail
prepared to qualify for Carrier Route Bound Printed Matter rates that
is prepared in carrier route, optional 5-digit carrier routes scheme,
and 5-digit carrier routes sacks; on 5-digit scheme carrier routes
scheme and 5-digit carrier routes pallets; or in bedloaded carrier
route packages. Flat-size mail must be entered at the facility where
the carrier cases flat-size mail as shown in the Drop Ship Product.
    For irregular parcels, DDU rates would be available for carrier
route packages and 5-digit packages prepared in direct carrier route,
5-digit carrier routes, and 5-digit sacks, or on 5-digit pallets.
Irregular parcels prepared as bedloaded carrier route packages or
bedloaded 5-digit packages also would be eligible for DDU rates.
    For machinable parcels, DDU rates would be available for Carrier
Route rate parcels prepared in direct carrier route sacks and for
Presorted rate parcels prepared in 5-digit sacks or on 5-digit pallets.
    To claim the DDU rates, both irregular and machinable parcels would
be required to be entered at the facility that delivers parcels to the
addresses appearing on the deposited pieces. Mailers would use the Drop
Ship Product to determine the location of the 5-digit delivery facility
and whether it can handle pallets. When the Drop Ship Product shows
that parcels for a single 5-digit ZIP Code area is delivered out of
more than one postal facility, then the facility from which the
majority of city carrier routes are delivered would be used as the
facility at which the DDU mail must be entered and to determine whether
that facility can handle pallets, unless the 5-digit ZIP Code is listed
in Exhibit E751.7.0 or Exhibit E751.8.0. For ZIP Codes in E751.7.0 and
Exhibit E751.8.0, mailers would use the name of the facility associated
with the 5-digit ZIP Code on the respective exhibit as the facility at
which DDU mail for that 5-digit ZIP Code mail must be entered.
(13) Destination Entry Mail Preparation--Plant-Verified Drop Shipment
(PVDS) (DMM E752)
    Pieces would be required to be part of a mailing of at least 300
pieces of Presorted Bound Printed Matter or part of a mailing of at
least 300 pieces of Carrier Route Bound Printed Matter to qualify for
DBMC, DSCF, and DDU rates. When Presorted Bound Printed Matter or
Carrier Route Bound Printed Matter mailings are submitted under PVDS
procedures, mailers would be able to use the total of all line items
for all destinations on a PVDS register or PVDS postage statement to
meet the respective 300-piece minimum volume requirements. This means
that a mailer may enter fewer than 300 pieces per Presorted or Carrier
Route mailing at an individual destination, provided there is a total
of at least 300 Presorted rate pieces and/or 300 Carrier Route rate
pieces for all of the entry points for that single mailing job listed
on the PVDS register or PVDS postage statement.
(14) Detached Address Label Mailings (DMM A060)
    Currently, Bound Printed Matter may be prepared with detached
address labels (DALs) only when for delivery in the local zone of the
post office of mailing. The local zone rates are removed under this
rate proposal. Accordingly, revised preparation requirements for use of
DALs with Bound Printed Matter mailings are included in this proposal.
Under the proposal, mailers would prepare Bound Printed Matter with
DALs under either a pallet preparation option or a sacking preparation
option.
    When prepared on pallets, mailers would be permitted to enter mail
prepared with DALs at any post office where mail is verified provided
only 5-digit pallets are prepared and if the following additional
requirements and restrictions are met. The 5-digit pallets would be
required to meet the minimum volume and other requirements for pallet
preparation under M040 and M045, except that for flat-size mail,
separate 5-digit pallets for Carrier Route rate and for Presorted rate
mail would

[[Page 52489]]

not be required. The mail would not be permitted to be prepared on
pallets when the Drop Ship Product indicates that the delivery unit
that serves the 5-digit pallet destination cannot handle pallets. The
destination delivery unit is determined using the Drop Ship Product
under the provisions for the DDU rate in E752. (For delivery units that
cannot handle pallets mail with DALs would be required to be prepared
in sacks.) The trays or cartons of DALs would be required to be
prepared under A060.3.0 and placed on the same pallet as the pieces and
trays of DALs and the items would be required to be stretch-wrapped
together as one unit.
    For mail prepared with DALs in sacks, the matter would be required
to be prepared in 5-digit sacks and entered at the destination delivery
unit. The destination delivery unit would be determined using the Drop
Ship Product under the provisions for the DDU rate in DMM E752. The
DALs would be required to be packaged under A060.3.0 and presented to
the destination delivery unit with the accompanying items to be
distributed with the DALs.
(15) Ancillary Service Endorsements
    It is proposed that undeliverable-as-addressed (UAA) Bound Printed
Matter pieces mailed with no special service (e.g., Delivery
Confirmation, insured), and with no ancillary service endorsement,
would be disposed of by the USPS as waste at the delivery unit. This
would make the handling of undeliverable-as-addressed Bound Printed
Matter pieces that are not mailed with a special service or an
ancillary service endorsement the same as for Standard Mail. Mailers of
Bound Printed Matter who want to have their undeliverable-as-addressed
pieces forwarded and returned could continue to choose the appropriate
ancillary service endorsement to obtain such service. No other changes
to the treatment of undeliverable-as-addressed Package Services mail
are proposed.
(16) Postage Payment
    DMM P700 would be amended to clarify that precanceled stamps may
not be used for payment of Bound Printed Matter.

9. Media Mail (Formerly Special Standard Mail)

a. Media Mail Rate Highlights
    Media Mail (formerly Special Standard Mail) rates would increase by
an average of 4.9%. The barcoded discount for qualifying Media Mail
would remain at $0.03 per piece. Separate rate schedules would be
implemented for Media Mail and Library Mail as the shared rate
structure would be discontinued. It is proposed to increase the annual
presort mailing fee for Media Mail to $125.
b. Media Mail Rate Structure
    It is proposed to implement separate rate schedules for Media Mail
and Library Mail.
c. Media Mail (Formerly Special Standard Mail) Preparation Changes
(1) Rate Marking (DMM M012 and M730)
    Special Standard Mail is being renamed ``Media Mail,'' and the
marking that is required to appear on each piece would be changed from
``Special Standard'' to ``Media Mail.'' A phase-in period through
January 1, 2002, is proposed in order to give mailers time to adjust to
this change and deplete any existing stocks of permit imprints that may
bear the `` Special Standard'' marking.
(2) Sack and Pallet Labels (DMM M031, M045, and M730)
    The abbreviation ``STD'' or ``STD B'' that currently appears on
sack and pallet labels for Package Services mailings would be changed
to ``PSVC'' (an abbreviation for Package Services).
(3) Clarification of Preparation Requirements
    Current M630.4.0 provides for preparing Media Mail as bedloaded
bundles under current M630.7.0. However, current M630.7.0 provides only
for preparation of Bound Printed Matter as bedloaded bundles, and the
eligibility requirements for the Media Mail rates in current E630.4.0
provide only for preparation in sacks, on pallets, or as outside
parcels prepared as prescribed by the postmaster of the mailing office.
Accordingly, the provisions for preparing bedloaded bundles of Media
Mail have been deleted from proposed new M730 that contains the
requirements for presorted Media Mail. Current E630.4.0 (renumbered as
E713) provides for preparing 5-digit and BMC bundles of Media Mail on
pallets. The terminology in this section would be changed to provide
for ``packages'' of Media Mail on pallets. Furthermore, the reference
in current M630.4.0 (new M730) that refers to preparing mail according
to the machinable parcel preparation rules has been deleted from
proposed DMM M730. There are no provisions for such preparation to
qualify for presorted Media Mail rates in proposed E713. The option to
prepare sacks and qualify for presorted 5-digit or BMC rates based on a
minimum of 1,000 cubic inches of mail would be deleted; however, the
eight-piece or 20-pound minimum per 5-digit sortation level and the
four-piece or 20 pound minimum per BMC sortation level would be
retained.
(4) Postage Payment (DMM P700)
    DMM P700 would be amended to clarify that precanceled stamps may
not be used for payment of Media Mail.

10. Library Mail

a. Library Mail Rate Highlights
    Library Mail rates would increase by an average of 4.5%. The
barcoded discount for qualifying Library Mail would remain at $0.03 per
piece. Separate rate schedules would be implemented for Media Mail and
Library Mail as the shared rate structure would be discontinued. It is
proposed to increase the annual presort mailing fee for Library Mail to
$125.
b. Library Mail Rate Structure
    It is proposed to implement separate rate schedules for Library
Mail and Media Mail.
c. Library Mail Preparation Changes
(1) Rate Markings (DMM M012 and M740)
    The optional use of ``Library Rate'' as a rate marking for Library
Mail would be discontinued. Matter mailed at Library Mail rates would
be required to use only the marking ``Library Mail.'' A phase-in period
through January 1, 2002, is proposed in order to give mailers time to
adjust to this change and deplete any existing stocks of permit
imprints that may bear the ``Library Rate'' marking.
(2) Sack and Pallet Labels (DMM M031, M045, and M740)
    The abbreviation ``STD'' or ``STD B'' that currently appears on
sack and pallet labels for Package Services mailings would be changed
to ``PSVC'' (an abbreviation for Package Services).
(3) Sack Preparation Minimums (DMM M740)
    The option to prepare sacks and qualify for presorted 5-digit or
BMC rates based on a minimum of 1,000 cubic inches of mail would be
deleted (see M740).
(4) Postage Payment (DMM P700)
    DMM P700 would be amended to clarify that precanceled stamps may
not be used for payment of Library Mail.

[[Page 52490]]

11. Special Services and Other Services

a. Address Changes for Election Boards (DMM A910)
    The fee is proposed to increase from $0.17 to $0.24 for each
address card. There are no classification changes proposed for this
service. See DMM R900.12.3.
b. Address Correction Notifications (DMM F030)
    The manual (hard-copy) fee is proposed to increase from $0.50 to
$0.60 for each notification. There is no proposed change to the
automated (electronic) fee notification (currently $0.20 each). There
are no classification changes proposed for this service. See DMM
R900.1.0.
c. Bulk Parcel Return Service (DMM S924)
    The per-piece charge is proposed to decrease from $1.75 to $1.65
for each piece returned under Bulk Parcel Return Service (BPRS). It is
proposed that the annual BPRS permit fee increase from $100 to $125. It
is proposed to establish a new annual accounting fee of $375 for BPRS.
This fee covers the costs of providing account maintenance services to
mailers and is consistent with accounting fees charged for other
special services. Current BPRS permit holders would have 30 days from
the date of implementation of this classification change to pay their
initial annual accounting fee. See DMM R900.3.0.
    No special services would be available for pieces returned through
BPRS.
d. Business Reply Mail
(1) Business Reply Mail (BRM) (DMM S922)
    It is proposed to increase the annual business reply mail (BRM)
permit fee from $100 to $125.
    The per-piece charge for low-volume BRM (BRM without an annual
accounting fee) is proposed to increase from $0.30 to $0.35. This per-
piece charge is in addition to single-piece First-Class Mail (or
Priority Mail) postage. The per-piece charge for high-volume BRM (BRM
with an annual accounting fee) is proposed to increase from $0.08 to
$0.10. This per-piece charge is in addition to single-piece First-Class
Mail (or Priority Mail) postage. It is proposed to increase the annual
accounting fee, required for high-volume BRM, from $300 to $375.
(2) Qualified Business Reply Mail (QBRM) (DMM E150, S922)
    The discounted automation rate for qualified business reply mail
(QBRM) is proposed to increase from $0.30 to $0.31 as described under
the First-Class Mail Summary. The annual accounting fee (required to
participate in QBRM) is proposed to increase from $300 to $375.
    It also is proposed to split QBRM into two categories with
different per-piece charges to mirror the current fee structure of BRM.
The first category is the existing classification and will be called
``low-volume'' QBRM. The per-piece charge for low-volume QBRM is
proposed to increase from $0.05 to $0.06. This per-piece charge is in
addition to the lower QBRM First-Class Mail postage listed in R100.
    The proposed new classification, called ``high-volume QBRM,''
recognizes that, for large volume users, some costs are relatively
fixed, rather than varying with marginal volume. The high-volume QBRM
category includes a lower per-piece charge and requires payment of a
new (separate) quarterly fee in addition to the annual accounting fee.
It is proposed to charge $0.03 per piece returned under high-volume
QBRM service. This per-piece charge is in addition to the lower QBRM
First-Class Mail postage listed in R100. It is proposed to charge an
$850.00 quarterly fee (in addition to the $375.00 annual accounting
fee). Mailers may ``opt in'' to high-volume QBRM by paying the
quarterly fee at any time as their volume warrants, thereby paying
lower per-piece charges when they expect a larger volume of returned
pieces. Quarterly fees would apply to any three consecutive calendar
months, beginning with the first calendar day of the first month and
ending on the last calendar day of the third month. If the quarterly
fee is paid on or before the 15th of the month, then the quarterly fee
is counted as if it was paid on the first day of that calendar month,
but the lower per-piece charges begin on the day the fee is paid. If
the quarterly fee is paid after the 15th of the month, then the lower
per-piece charges begin immediately, but the quarterly fee is credited
as if it was paid on the first day of the following calendar month and
continues through three calendar months. Mailers may not apply for
``retroactive'' refunds of per-piece charges. See DMM R900.4.0
(3) Nonletter-Size Business Reply Mail (DMM S922)
    Clarifying language would be added to ensure that the maintenance
fee applies to the bulk weight-averaging method only. No changes are
proposed to the per-piece charge or to the monthly maintenance fee. The
annual business reply mail permit fee is proposed to increase from $100
to $125. The annual accounting fee is proposed to increase from $300 to
$375. See DMM R900.4.0.
e. Carrier Sequencing of Address Cards (DMM A920)
    The fee is proposed to increase from $0.20 to $0.25 for each card
removed due to an incorrect or undeliverable address and for each card
added with a new address. There are no classification changes proposed
for this service. See DMM R900.2.0.
f. Certificate of Mailing (DMM S914)
    For individual pieces, the fee for the original certificate of
mailing is proposed to increase from $0.60 to $0.75. While no change is
proposed to the firm mailing book fee, the fee for an additional copy
of a certificate of mailing is proposed to increase from $0.60 to
$0.75.
    For bulk quantities, the fee for one certificate of mailing (for
the first 1,000 pieces) is proposed to increase from $3.00 to $3.50.
There is no proposed change to the fee for a certificate for each
additional group of 1,000 pieces. The fee for an additional copy of a
bulk certificate of mailing is proposed to increase from $0.60 to
$0.75.
    There are no classification changes proposed for this service. See
DMM R900.6.0.
g. Certified Mail (DMM S912)
    The fee is proposed to increase from $1.40 to $2.10 in order to
cover newly estimated costs for this service. See DMM R900.7.0.
h. Collect on Delivery (COD) (DMM S921)
    Fees are proposed to increase by $.50 for every $100 value level.
It is proposed to increase the maximum COD value level from $600 to
$1,000. No change is proposed to the fees for registered COD, the
notice of nondelivery, or the alteration of COD charges (Form 3849-D).
The money order limit is proposed to remain at $700; therefore, if the
recipient pays in cash for COD amounts over $700, then the USPS will
send two postal money orders to the mailer (and collect two money order
fees from the recipient). See DMM R900.8.0.
i. Correction of Mailing Lists (DMM A910)
    The charge per correction is proposed to increase from $0.20 to
$0.25. In conjunction, the minimum charge per list is proposed to
increase from $7.00

[[Page 52491]]

to $7.50. There are no classification changes proposed for this
service. See DMM R900.12.0.
j. Delivery Confirmation (DMM S918)
    The fee for retail option Priority Mail Delivery Confirmation
(i.e., purchased by a customer over a retail counter) is proposed to
increase from $0.35 to $0.40. The fee for retail option Package
Services Delivery Confirmation is proposed to increase from $0.60 to
$0.65. No change is proposed to the fees for electronic option Delivery
Confirmation for Priority Mail and Package Services.
    It is proposed to extend electronic option Delivery Confirmation
service to Standard Mail (both Regular and Nonprofit subclasses).
Delivery Confirmation service would be limited to Standard Mail parcels
that are subject to the residual shape surcharge. No retail option is
proposed for Standard Mail. The proposed fee for electronic option
Delivery Confirmation for Standard Mail is $0.25 per piece, which
mirrors the current fee for Package Services. See DMM R900.9.0.
k. Express Mail Insurance (DMM S500)
    Fees for Express Mail insurance are proposed to increase. There are
no classification changes proposed for this service. See DMM R900.10.0.
l. Insurance (DMM S913)
    Fees for insurance are proposed to increase for all value levels.
It is proposed to offer separate bulk discounts for unnumbered and
numbered insurance. In addition, it is proposed to extend bulk
insurance to Standard Mail (both regular and nonprofit). Bulk insurance
would be limited to Standard Mail parcels that are subject to the
residual shape surcharge. No regular insurance is proposed for Standard
Mail. See DMM R900.11.0.
    It is proposed to remove the requirement that insured pieces sent
at First-Class Mail and Priority Mail rates be marked ``Standard Mail
Enclosed.''
m. Mailing Fees
    Presort mailing fees and destination entry mailing fees for all
classes of mail are proposed to increase. Specific fees and
classification changes are included under the separate summary for each
class of mail.
n. Merchandise Return Service (DMM S923)
    It is proposed to eliminate the per-piece (transaction) fee for
parcels returned to the permit holder via merchandise return service
(MRS). It is proposed to establish a new annual accounting fee of $375
for MRS. This fee covers the costs of accounting services provided to
mailers and is consistent with accounting fees charged for other
special services. Current MRS permit holders would have 30 days from
the date of implementation of this classification change to pay their
initial annual accounting fee. See DMM R900.13.0.
    It is proposed to allow customers (those who use merchandise return
service labels to return a parcel to the permit holder) to add
insurance to a MRS parcel at their own discretion and expense. No other
special services could be added by the sender. Previously, insurance
could be added to a parcel only if specified by the permit holder. It
is proposed to remove the requirement that MRS parcels sent at First-
Class Mail and Priority Mail rates be marked ``Standard Mail
Enclosed.''
    It is proposed that parcels that do not bear a class or rate
marking, regardless of weight, would be treated as Parcel Post and
would be charged Parcel Post Inter-BMC/ASF rates.
    These same changes are proposed to apply to penalty merchandise
return service.
o. Money Orders (DMM S020)
    It is proposed to increase the fee for domestic money orders from
$0.80 to $0.90 per money order. It is proposed to increase the fee for
APO/FPO money orders from $0.30 to $0.35 per money order. It is
proposed to increase the inquiry fee from $2.75 to $3.00. There are no
classification changes proposed for this service and the maximum amount
would remain at $700. See DMM R900.15.0.
p. Parcel Airlift Service (PAL) (DMM S930)
    There are no proposed fee or classification changes for this
service. See DMM R900.16.0.
q. Permit Imprint Application Fee (DMM P040)
    The application fee for permit imprints is proposed to increase
from $100 to $125. Other kinds of permit fees (e.g., business reply
mail) are covered under separate summary sections. See DMM R900.17.0.
r. Pickup Service (DMM D010)
    The pickup service fee is proposed to increase from $8.25 to $10.25
per pickup. There are no classification changes proposed for this
service. See DMM R900.18.0.
s. Post Office Boxes, Caller Service, and Reserve Call Numbers (DMM
D910 and D920)
    The Postal Service is proposing to restructure post office box fee
groups and to establish fees in each of the new groups. Compared to
equivalent current post office box fees, the proposed fees represent
both increases and decreases. It is proposed to charge a nonrefundable
$4.00 fee for each key, over two, requested by a customer. In addition,
the Postal Service is proposing a $10.00 lock replacement fee.
    In an attempt to better align fees with the actual cost of
providing post office box service, the Postal Service is proposing to
change the classification structure for post office boxes. The current
classification (and therefore fees) of post office boxes are based
primarily on the type of carrier delivery at a particular postal
facility.
    The Postal Service has undertaken a major project to align post
office box fees with actual costs by 5-digit ZIP Codes. In other words,
post office boxes that have similar costs would be grouped together and
have the same fee. These ``actual costs'' include estimated rental
value of the space used to provide post office boxes.
    For this proposal, each 5-digit ZIP Code was assigned to one of six
cost-based groups based on the estimated cost per square foot of the
postal facilities within that ZIP Code. All facilities with post office
boxes in the same 5-digit ZIP Code are in the same cost group and will
charge the same fees for post office boxes. Therefore, facilities
(stations and branches) within the same geographic area that are in
different ZIP Codes may charge different fees for the same size post
office box. Movement of ZIP Codes from old fee groups to new groups has
been constrained to mitigate ``fee shock'' for customers whose post
office box fees would have changed significantly.
    There are no proposed changes to free (Group E) box service.
Therefore, customers qualifying for free box service would continue to
receive free service.
    The Postal Service is developing a new data system to track post
office box costs by 5-digit ZIP Code. At this time, the Postal Service
is still adding data to this system and checking existing data for
accuracy. A draft list of 5-digit ZIP Codes and fee group assignments
will be made available to the public at a future date; the fee group
assignments are not open for comment as part of this proposed rule. If
this proposal is adopted, a final list will be published before
implementation of new post office box fees.

[[Page 52492]]

    The Postal Service believes that this post office box
reclassification will result in fairer, more equitable post office box
fees for all customers because the fees will more accurately reflect
the true costs of providing that service.
    Current post office box customers would not pay the proposed fees
until their current box rental period ends. See DMM R900.19.0.
    Under the same reclassification effort, the caller service fee is
proposed to increase to $375 for all customers at all postal
facilities. Caller service fees would no longer be broken out according
to post office fee groups. The annual call number reservation fee is
proposed to decrease from $36 per semi-annual period to $30 per semi-
annual period. See R900.5.0.
    t. Registered Mail (DMM S911)
    All registered mail fees are proposed to increase. The incremental
fee for registered mail per value level is proposed to increase from
$0.55 to $0.75. The handling charge per $1,000 in value, or fraction
thereof, for items valued over $25,000 also is proposed to increase
from $0.55 to $0.75. There are no classification changes proposed for
this service. See DMM R900.20.0.
u. Restricted Delivery (DMM S916)
    The restricted delivery fee is proposed to increase from $2.75 to
$3.20. There are no classification changes proposed for this service.
See DMM R900.21.0.
v. Return Receipt (DMM S915)
    The regular return receipt fee is proposed to increase from $1.25
to $1.50. The return receipt for merchandise fee is proposed to
increase from $1.40 to $2.35. The fee for a return receipt after
mailing is proposed to decrease from $7.00 to $3.50. These changes
reflect improved cost estimates and the impact of electronic signature
capture. See DMM R900.22.0.
    The Postal Service is proposing two classification changes. The
first change would allow return receipt for merchandise to be combined
with unnumbered insurance. The second change would extend return
receipt for merchandise service to Standard Mail (Regular and Nonprofit
subclasses); this service would be limited to Standard Mail parcels
that are subject to the residual shape surcharge. Enhanced Carrier
Route and Nonprofit Enhanced Carrier Route subclasses would not be
eligible for return receipt for merchandise.
w. Shipper Paid Forwarding (DMM F010)
    The Postal Service is proposing to establish an annual accounting
fee of $375 for shipper paid forwarding for customers who choose to pay
forwarding charges through a postage due account. This fee is
consistent with accounting fees charged for other special services. See
DMM R900.24.0.
x. Signature Confirmation (DMM S919)
    The Postal Service proposes to establish a new classification and
fee schedule for Signature Confirmation. Signature Confirmation will
capture and provide access to all Delivery Confirmation data and an
image of recipient signatures. Signature Confirmation will be available
only at the time of mailing for Priority Mail and all subclasses of
Package Services. For Priority Mail Signature Confirmation, the
proposed fees are $1.25 for electronic option and $1.75 for retail
option. For Package Services Signature Confirmation, the proposed fees
are $1.25 for electronic option and $1.75 for retail option. See DMM
R900.25.0.
    Before the implementation of R2000-1, it is possible that an
equivalent service will be implemented as electronic return receipt
service with Delivery Confirmation, based on the PRC's recommendation
on Docket No. R97-1.
y. Special Handling (DMM S930)
    There are no proposed fee or classification changes for this
service. See DMM R900.26.0.
z. ZIP Code Sortation of Mailing Lists (DMM A910)
    Fees for sorting mailing lists by 5-digit ZIP Code for post offices
with multiple ZIP Codes are proposed to increase from $70.00 to $73.00
per 1,000 addresses. There are no classification changes proposed for
this service. See DMM R900.12.0.

12. On-Site Meter Service (DMM P030)

    It is proposed to change the name of the service from ``on-site
meter settings'' to ``on-site meter service.'' It is proposed to
replace the ``single meter'' and ``unscheduled appointment'' categories
with a new ``meter service'' category. It is proposed to replace the
``additional meters'' category with a ``meter reset and/or examined''
category. These categories are proposed in order to consolidate similar
fees and make the service simpler.
    New fees have been proposed for these realigned categories. The
proposed fee for meter service is $31.00. The proposed fee for getting
a meter reset and/or examined is $4.00 per meter. The proposed fee for
checking a meter in or out of service is proposed to decrease from
$8.00 to $4.00 per meter. See DMM R900.14.0.
    The Postal Service proposes that these fees for checking a meter in
and out would not apply to ``secured postage'' meters. To qualify as a
``secured postage'' meter, a meter must: (1) Include a USPS-approved
postal security device; (2) print information-based indicia; and (3) be
remotely set. Because of the enhanced security that these meters
provide, they do not require labor intensive activities during
installation or withdrawal. Therefore, these meters do not have
significant check-in/out costs.

13. Stamps and Stationery (DMM P021)

a. Stamped Cards
    The fee for a single stamped card is proposed to increase from
$0.01 to $0.02. The fee for double stamped cards is proposed to
increase from $0.02 to $0.04, and the fee for a sheet of 40 stamped
cards is proposed to increase from $0.40 to $0.80. These fees are in
addition to the postage that is pre-printed on the cards and covers the
cost of printing and manufacturing stamped cards. See DMM R000.3.0.
b. Stamped Envelopes
    The fees for all categories of stamped envelopes are proposed to
increase. This fee is paid in addition to the postage pre-printed on
the envelopes. The following classification changes are proposed for
stamped envelopes:
    (1) Merge the printed household 6 \3/4\ inch and 10 inch categories
into a single category called printed household (basic).
    (2) Eliminate the banded categories for 6 \3/4\ inch and 10 inch
envelopes.
    (3) Expand the hologram category to include all envelopes that have
a patched-in stamp and rename that category ``special'' stamped
envelopes.
    See DMM R000.1.0 and R000.2.0.

B. Summary of Changes to the Domestic Mail Manual

    The following are proposed changes organized by DMM module. They
are intended as an overview only and should not be viewed by commenters
as defining every proposed revision.

Global Name Changes

    Throughout the DMM sections included in this document, the
following name changes have been made:
    1. ``Special Standard Mail'' has been changed to ``Media Mail.''
    2. ``Standard Mail (A)'' has been changed to ``Standard Mail.''
    3. ``Standard Mail (B)'' has been changed to ``Package Services.''
Package

[[Page 52493]]

Services includes all of the Standard Mail (B) subclasses: Parcel Post
(including Parcel Select), Bound Printed Matter, Media Mail, and
Library Mail.
    In addition, the current DMM 600 series, which contains combined
rules for Standard Mail (A) and Standard Mail (B), has been split into
a 600 series for Standard Mail and a 700 series for Package Services.
Within these new series, individual units and sections have been split
up and reorganized for clarity. Current DMM P700, which contains
standards for special postage payment systems, is renumbered as P900.
Throughout the language in the DMM, references to ``Standard Mail''
have been retained as ``Standard Mail'' or changed to ``Package
Services'' or ``Standard Mail and Package Services,'' as appropriate.

A  Addressing

    A010 is amended to change DMM references to reflect new DMM module
numbering. A060 1.4 is amended to incorporate new requirements for
preparation of Bound Printed Matter mailings with DALs because of the
elimination of local zone rates. Also, it is clarified that mailings
made with DALs may not contain any special services or an ancillary
service endorsement. A new A060.1.7 is added to exclude DALs on special
services mail.

C  Characteristics and Content

    C010 and C020 are revised to reflect new DMM module numbering. C050
is revised to decrease the machinable parcel minimum piece weight from
8 ounces to 6 ounces, to clarify that packaging requirements for soft
goods may be found in C010, and to clarify that a destinating BMC
manager may authorize the entry of parcels as machinable rather than as
irregular if they are tested for machinability and are delivered within
the service area of the authorizing facility. C200.5.0 is added to
specify size and weight limitations for Periodicals. C600 is revised to
delete sections 1.3 and 2.0, which pertain to Package Services and have
been moved to new C700. C700 is added to include characteristics and
content standards for Package Services (former C600.1.3 and 2.0 are
included in this new section). C700.2.0 is amended to provide for the
addition of new nonmachinable surcharges for intra-BMC and Parcel
Select DBMC parcels. C810.2.3 is added to include instructions for
determining the length and height for automation letters. C810.2.4
(former C810.2.3) is amended to provide for the new maximum weight of
3.5 ounces for heavy letters. C850 is amended to add Standard Mail
machinable parcels as items eligible for barcoded discounts.

D  Deposit, Collection, and Delivery

    D600 is revised to remove information pertaining to Package
Services, to add information about deposit of mail under plant-verified
drop shipment procedures, and to clarify language. D700 is added to
include deposit information for Package Services (formerly contained in
D600).
    D910.1.5 is amended to clarify that post office box customers must
pay the correct fee for the box service they receive. D910.1.7 is added
to clarify that post office box service is provided in 6-month
increments. D910.1.8 (formerly D910.1.7) is amended to add information
about the new key duplication fee and the new lock resetting fee.
D910.3.1 is amended for clarity. D910.3.7 is amended to clarify that a
post office box may not be used when the primary purpose is to have the
Postal Service redirect or transfer mail to another address. D910.4.1
is amended to change the basis of post office box fees. D910.4.3 is
deleted to remove references to fee groups; subsequent sections are
renumbered. Renumbered D910.4.3 is amended to specify the conditions
under which post office box fees can change. D910.4.4 is amended to
clarify when post office box fees must be paid. D910.4.7 is amended to
show that the exception for payment periods is applicable to all
offices with fewer than 500 post office boxes, regardless of fee group.
D910.5.1 is amended to explain the new system for grouping ZIP Codes
into fee groups. D910.5.2 and 5.3 are amended to clarify the conditions
under which a customer could qualify for fee (Group E) post office box
service. Exhibits D910.5.3a and 5.3b are deleted because of the change
to a new fee system. D910.6.1 is amended to clarify how refunds for
post office box fees are calculated. D910.7.0 is revised to include the
new fee for replacement or duplicate keys and the new fee for replacing
post office box locks.
    D920.1.4 is amended to move information about reserved caller
numbers into new D920.1.5. D920.3.4 amended to clarify that caller
service may not be used when the primary purpose is to have the Postal
Service redirect or transfer mail to another address. D920.4.0 is
amended and Exhibit 4.1 is deleted to remove references to caller
service fee groups. D920.4.2 is amended to clarify that reserved number
fees are not refundable. D920.4.3 is amended to remove references to
deleted sections. D920.4.5 is amended to clarify the payment periods
for caller service. D920.4.8 is amended to show that the exception for
payment periods is applicable to all offices with fewer than 500 post
office boxes. D920.5.1 is amended to clarify how refunds for caller
service fees are calculated. D920.5.3 is added to show that the reserve
number fee is not refundable.

E  Eligibility

    Throughout the E module, references to ``Regular'' are changed to
``Outside-County,'' as appropriate.
    E010.1.4 is amended to change references from ``C600'' to ``C700.''
E010.1.6 is amended to add clarity to the first sentence. The first
sentence of E020.1.4 is added to clarify that Express Mail cannot be
sent through the Department of State. E020.2.3 is amended to show that
Signature Confirmation is not available for mail sent through the
Department of State. E040.4.1 is amended to change references from
``C600'' to ``C700.'' E060 5.3 is amended to reflect the current
requirement for a ``Parcel Post'' rate marking for single-piece rate
Parcel Post. E060.10.1 is amended to clarify standards for penalty
reply mail. E060.11.1 is amended to add QBRM as an option for penalty
business reply mail and to clarify when the annual accounting fee is
paid. E060.12.1 is amended by adding a reference to S923. A new
E060.12.2 is added to clarify how penalty merchandise return service
(MRS) parcels are charged postage and fees. A new E060.12.3 is added to
require MRS permit holders to pay an annual accounting fee. E060.12.7c
is added to indicate where the recommended rate marking should appear
on the MRS label. E060.12.8 is amended to clarify standards for permit
holders who choose to add insurance to MRS parcels. E060.12.9 is
renumbered as E060.12.10 and new E060.12.9 is added to allow senders to
add insurance to MRS parcels at their own discretion and expense.
E070.4.2 is amended to change the reference from ``E600'' to ``E700.''
E070.6.2 is revised to specify Presorted rate mail must be prepared
under Bound printed Matter standards. E120.2.4 is revised to add
provisions for a new minimum Priority Mail rate for pieces weighing 1
pound or less, and to add information on rates applicable to keys and
identification devices. E130.2.2 is revised to clarify the fee for keys
and identification devices. E130.2.3 is relocated to M110.1.0. E140.2.2
and E140.2.3 is revised to add separate 5-digit (optional) and 3-digit
(required) rate eligibility requirements for automation flats. E150.2.0
is amended by removing the last sentence. E150.3.2 is amended by adding
a

[[Page 52494]]

quarterly QBRM fee under E150.3.2d. E211.13.1 is amended by revising
13.1d(3). E211.13.2 is amended for clarity, no fee is charged if
reentry is only to change eligibility to preferred rates or the
preferred rate discount. E211.14.0 has been revised and renumbered as
E220.1.0. E212.2.4 has been revised and renumbered as E220.4.0.
E215.2.3 is amended by adding references to Preferred rate discount and
clarifying qualification categories. New E215.2.4 is added for
Publications of Institutions and Societies. E215.2.7 is amended by
replacing the second sentence and deleting the third sentence. A new
E220 is created that describes and clarifies basic rate eligibility
standards for Periodicals including the new preferred rate discount for
Nonprofit and Classroom publications which provides a 5% discount on
total Outside-County postage, excluding the postage for advertising
pounds. E270 is amended by removing 1.0 and 6.0 and renumbering 2.0
through 9.0 as 1.0 through 7.0 and replacing the word in 1.0 ``RATES''
with the word ``ELIGIBILITY.'' Removing the word ``rates'' and
replacing the reference 3.0 and 4.0 as 2.0 and 3.0 amends renumbered
E270.1.1. Removing the word ``regular'' amends renumbered E270.1.3.
E270.1.4 is removed. Removing the word ``RATES'' with the word
``ELIGIBILITY'' amends renumbered E270.2.0. E270.2.1 and E270.2.2 are
amended by replacing the reference ``3.3 through 3.10'' with ``2.3
through 2.10.'' Removing the word ``RATES'' with the word
``ELIGIBILITY'' amends renumbered E270.3.0. Removing the word
``regular'' in the last sentence amends renumbered E270.4.0. E270.5.1
is amended by adding a new first sentence requiring the Preferred rate
discount is available only after USPS authorization. E270.5.5, Rate
Anomaly, renumbered as E270.4.5 is removed. In renumbered E270.5.0, 5.1
is removed and E270 5.2 and 5.3 are renumbered as 5.1 and 5.2.
Renumbered E270.5.1 is amended by adding a new first sentence
describing the Preferred rate discount and revising the second sentence
applicable to authorization procedures for Nonprofit and Classroom
publications. Adding reference to preferred rate and replacing
``Regular Periodicals'' with ``Outside-County'' amends renumbered
E270.6.1 and E270.6.2. Renumbered E270.7.4 is amended by replacing
``Regular'' with ``Outside-County,'' and the reference ``9.5'' with
``7.5.'' E611 is amended to provide basic eligibility requirements for
only Standard Mail and is renumbered as E610. E610.1.0 is amended to
show that Standard Mail no longer includes matter previously referred
to as Standard Mail (B) or fourth-class mail, and add the weight limit
from former E612.1.0. E610.4.6 is removed because this section is no
longer needed since all Package Services mail may now weigh less than
16 ounces. E610.5.0 is amended for clarity and incorporates new maximum
limits for minimum per-piece rates. E610.5.4 is added for machinable
parcels prepared with barcodes to be eligible for a barcoded discount.
E610.5.5 is added for mail that is prepared as a parcel or is not a
letter-size or flat-size mailpiece defined in C050 is subject to a
residual shape surcharge. E612.4.9 is renumbered as E612.8.0. E612.8.0
is amended for clarity and provides use of detached address labels.
E610.5.6 is amended to provide for the residual shape surcharge.
Renumbered E610.5.7 is amended to remove the reference to 4.6 and to
delete ``bulk'' and to change ``pound rates'' to ``piece/pound rate.''
E612 is removed and its information added to new E610. E620 is amended
to remove information pertaining to Enhanced Carrier Route Mail, and to
add new 4.0, which contains standards for the barcoded discount.
Information in current E630 has been moved to new E700. E630 now
contains eligibility for Standard Mail Enhanced Carrier Route mail.
E640 is amended to change references replacing ``Standard Mail (A)''
with ``Standard Mail'' and amended current ``E611 and E612'' to a
consolidated and reorganized ``E610.'' E650 has been revised by
renumbering E651 to E650 and amended current ``E611 and E612'' to a
reorganized ``E610.'' E670 is amended to add a reference replacing
``P750,'' which has been moved to ``P950.'' A new E700 is created for
Package Services as part of the restructuring to establish separate
modules for Standard Mail and Package Services mail. A new description
has been added above E710 to match the description in the new E610
section. Existing E611 and E613 are renumbered to be part of the basic
standards in E710 and sections of existing E630 are renumbered as new
E711, E712, E713, E714, and E715. Existing E613.1.0 is renumbered as
E710.1.2 and amended to reflect that minimum weights for subclasses of
Package Services mail have been eliminated. E630.1.3 is renumbered as
E711.2.2 and amended to add the new Intra-BMC and Parcel Select-DBMC
nonmachinable surcharges, and E711.2.3 is revised to clarify that
certain parcels mailed at a balloon rate may be subject to a
nonmachinable surcharge. E630.2.0 is renumbered as E712 and revised in
its entirety. The definition of a full sack is revised in E713 and in
all other sections by eliminating the 1,000 cubic inch volume
requirement and retaining only the piece and sack weight criteria.
E630.5.1 is renumbered as E714 and amended to change the class name
from Library Mail to Package Services. E652 is renumbered as E750 for
destination entry Package Services mail. E751.4.4 and 4.5 are revised
to clarify that an exception to the appointment requirement exists for
destination entry shipments containing 100 percent Periodicals or
shipments of perishables. E752 is created for new destination entry
discounts for Presorted rate and Carrier Route rate mailings of BPM
encouraging the deposit of mail at a destinating BMC, SCF, or delivery
unit. An annual destination entry fee for mail entered at destination
entry rates is proposed. This new section also explains Destination
Entry Mail Preparation when mailing under plant-verified drop shipment
(PVDS). E753 has been added to provide for the combining of Package
Services parcels in 5-digit sacks (E753.2.0) and on 5-digit pallets
(E753.3.0) for destination entry at the SCF and DDU levels if also
presented with an approved manifest. Sacks containing at least 10
combined pieces or a combined weight of 20 pounds and pallets having at
least 50 combined pieces and a combined weight of 250 pounds of mail,
or 36 inches of mail, will be allowed. BPM parcels claimed at a Carrier
Route rate may not be combined with the other Package Services parcels.

F  Forwarding and Related Services

    F010.4.5 is amended to add that Standard Mail with insurance is
forwarded and returned. F010.4.6 is added to make the standards for
undeliverable metered mail in this module consistent with standards
elsewhere in the DMM. F010.5.3g is added and the chart in F010.5.3 is
amended to prohibit the use of the ``Change Service Requested''
endorsement on Standard Mail with special services. F010.5.4c is added
and the chart F010.5.4 is amended to allow BPM with no ancillary
service endorsement and no special service to be disposed of by the
Postal Service. F010.7.4 is amended to specify that combination parcels
are returned at Parcel Post Inter-BMC/ASF rates.
    F030.2.5 is amended to give mailers participating in Shipper Paid
Forwarding the option of paying forwarding charges through a postage
due account. If mailers choose this option, then they must pay the
annual

[[Page 52495]]

accounting fee. F030.4.2 is amended to include information about
forwarding and return of Standard Mail.

L  Labeling Lists

    L001 is amended to change the introductory paragraph to show that
this labeling list may be used with Bound Printed Matter flats. L002 is
amended to add ``and per-piece'' to the rate description for
Periodicals SCF rates. L004 is amended to show that it may be used with
Bound Printed Matter. L601 is amended to show that packages of Bound
Printed Matter irregular parcels on pallets may use this list and to
show the instructions for labeling mixed BMC containers that were
inadvertently omitted from the Federal Register published August 8,
2000 (65 FR 48385). L602 is amended to remove the term ``bundles,'' and
to provide for use of this list by Bound Printed Matter machinable
parcels when DBMC rates are claimed.

M  Mail Preparation and Sortation

    M011.1.3 is amended to add preparation instructions for less-than-
full and overflow flat trays and to revise the preparation instructions
for 5-digit/scheme carrier routes sort and 5-digit/scheme sort to
provide for use of these levels of sortation with BPM flats. M012.3.1
is amended to eliminate the use of ``Library Rate'' marking effective
January 1, 2002 (after which date only ``Library Mail'' may be used as
the marking), to change the marking ``Special Standard'' to ``Media
Mail'' (``Special Standard'' or ``SPEC STD'' may be used only until
January 1, 2002). M012.3.2 is amended to add the marking ``Parcel
Select.'' M012.3.3 is amended to eliminate use of the marking
``Presorted Standard'' instead of ``Presorted'' with Presorted BPM
effective January 1, 2002 (after which date only ``Presorted'' and
``Bound Printed Matter'' may be used), and to add use of the
abbreviation ``BPM'' as an optional marking for ``Bound Printed
Matter.'' M013.1.1 is updated to include a carrier route package
optional endorsement line information for Carrier Route BPM. M013.2.5
is amended for clarity and to change the labeling list used for ADC
sortation of BPM irregular parcels from L603 to L004, to change the
labeling list used for mixed ADC sortation from L604 to L004. M020.1.4
is amended to delete references to bundles. Current M020.1.5 and 1.6
are renumbered 1.6 and 1.7 and a new M020.1.5 is added to describe new
physical preparation of BPM packages. M020.2.2 is amended to show that
First-Class Mail automation flats prepared under the new tray-based
preparation rules are not prepared in packages and to show that the
exception in renumbered M020.1.7 also applies to First-Class flats in
trays. M020.3.0 is amended to show that the requirements for facing
slips used to label carrier route packages applies to all classes of
mail. M031.4.7 is amended to specify that the words ``CARRIER ROUTES''
must appear on 5-digit pallets of BPM only when the pallet consists
entirely of irregular parcels eligible for the carrier route rate and
that the words ``CARRIER ROUTES'' must appear after the ``5D'' pallet
level description. M031.4.12 is amended to delete the term ``bundle.''
M031.5.0 is amended to add new abbreviations for First-Class Mail and
Package Services mail. Exhibit M032.1.3a is amended to reflect changes
in the content line and CIN numbers of Package Services sack labels.
M033.1.2 is amended to clarify that lids on First-Class flat trays must
be placed on the trays green side up. M033 is amended to provide for
less-than-full and overflow trays for First-Class Mail automation rate
mailings prepared under the new tray-based option.
    M041.5.6 is amended to require for flat-size BPM that Presorted
rate mail be placed on separate 5-digit pallets (5-digit scheme and 5-
digit pallets) than Carrier Route rate mail (5-digit carrier routes or
5-digit scheme carrier routes pallets), and to remove references to
palletized bundles. M045.2.0 is revised to clarify requirements and for
BPM to revise the package minimums, maximums, and physical packaging
requirements. Current M045.3.0, which provides for optional preparation
of bundles on pallets for Periodicals and Standard Mail is deleted.
M045.4 (as set forth in the final rules published in 65 FR 50054
(August 16, 2000)) is renumbered as M045.3. M045.3 is amended to
provide for separate pallet preparation requirements for BPM flats in
M045.3.3 and for irregular parcels in M045.3.4, to renumber the
remainder of that section, and to revise the class abbreviation on the
contents lines for Package Services mail from ``STD'' or ``STD B'' to
``PSVC.'' M045.5 through M045.15 (as set forth in the final rule
published in 65 FR 50054 (August 16, 2000)) is renumbered as M045.4
through M045.14. Renumbered M045.6.4 and M045.9.2 will be amended by
changing the reference ``M630'' to ``M710 or M720.'' Renumbered 10.0
and 11.0 are amended by changing ``STD'' or ``STD B'' to ``PSVC.''
Renumbered 12.1 is amended to change ``M630'' to M710,'' to change the
pallet label contents lines class abbreviation from ``STD B'' to
``PSVC,'' and to add ``PARCELS'' after the class abbreviation.
Renumbered 12.2 is amended to change ``M630'' to ``M710,'' to change
the pallet label contents lines class abbreviation from ``STD B'' to
``PSVC,'' and to add ``PARCELS'' after the class abbreviation.
M045.12.3 is amended to change ``Exhibits E652.7.0 and E652.8.0'' to
``Exhibits E751.7.0 and E751.8.0.'' M045.12.4 is amended to change
``E652.6.0'' to ``E751.6.0.'' M045.13.0 is amended to change ``M630''
to ``M710'' and to change the class abbreviation on the contents line
of the pallet label from ``STD B'' to ``PSVC.'' M045.14.0 is amended to
change the pallet label contents lines class abbreviation from ``STD
B'' to ``PSVC,'' and to add ``PARCELS'' after the class abbreviation.
M072.2.4 is amended by changing ``P710, P720, or P730'' to ``P910,
P920, or P930,'' and by changing ``E652'' to ``E751.'' M073.2.3 is
amended to change ``P710'' to ``P910.''
    M110 is added to show the preparation requirements for single-piece
First-Class Mail formerly located in E130.2.3. M610.6.0, which provided
for preparation of Standard Mail bedloaded bundles, is deleted.
M620.1.1a is amended by changing ``E620'' to ``E630.'' M630.1
pertaining to Parcel Post is renumbered in new M710.
    M710.1.1 is added to describe general requirements for Parcel Post.
Renumbered M710.1.3 (formerly M630.1.2) is revised to show that DSCF
and DDU rate mail need not be separated by zone and to change ``P710,
P720, or P730'' to ``P910, P920, or P930.'' M710.1.4 is added to
contain standard for commingled zones (formerly M630.8.0). M710.1.5
contains the documentation information formerly in M630.1.3 and is
amended to clarify the standards and to change ``P710, P720, or P730''
to ``P910, P920, or P930.'' M710.2.1 contains standards, formerly in
M630.1.4, that are amended by changing the reference ``1.5'' to
``2.2,'' by changing ``Exhibit E652.6.0'' to ``Exhibit E751.6.0,'' and
by changing the reference ``Exhibit E652.6.0 and Exhibit E652.8.0'' to
``Exhibit E751.7.0 and Exhibit E751.8.0.'' M710.2.2 (formerly M630.1.5)
contains standards that are amended to replace ``STD B 5D'' on the
contents line of DSCF 5-digit sacks with ``PSVC PARCELS 5D.'' M710.4.0
(formerly M630.6.0) is added to contain provisions for preparation of
machinable parcels and is amended to show that this preparation is
optional for Parcel Post. M720 (formerly M630.2.0 and 3.0) is added to
contain standards for BPM. M721 contains the preparation standards for
single-piece rate BPM. M722 contains the preparation standards for
Presorted

[[Page 52496]]

BPM. M722.2.1 contains new packaging requirements for Presorted flats.
M722.2.2 contains new sacking requirements for Presorted flats.
M722.3.0 contains new line 2 sack labeling requirements that change the
abbreviation ``STD'' to ``PSVC.'' M722.3.1 contains new packaging
requirements for Presorted BPM irregular parcels that weigh 10 pounds
or less. M722.3.2 contains new sack preparation requirements for
Presorted BPM irregular parcels weighing 10 pounds or less, including a
requirement to use L004 instead of L603 for preparation of ADC sacks
and to use L004 instead of L604 for mixed ADC sacks. M722.3.3 contains
new line 2 sack labeling requirements for Presorted BPM irregular
parcels weighing 10 pounds or less that change the abbreviation ``STD
B'' to ``PSVC.'' M722.3.4 contains a provision to allow preparation of
bedloaded 5-digit packages of Presorted BPM irregular parcels weighing
up to 40 pounds when prepared for and entered at DDU rates. M722.4.0
contains preparation requirements for Presorted BPM irregular parcels
weighing over 10 pounds. M722.4.1 prohibits packaging of such pieces
and requires that each individual piece must be enclosed in an
envelope, full-length sleeve, full-length wrapper, or polywrap before
being placed in sacks. M722.4.2 contains sacking requirements for
Presorted BPM irregular parcels weighing over 10 pounds including a
requirement to use L004 instead of L603 for preparation of ADC sacks
and to use L004 instead of L604 for mixed ADC sacks. M722.4.3 contains
new line 2 sack labeling requirements for BPM irregular parcels
weighing over 10 pounds that change the abbreviation ``STD B'' to
``PSVC.'' M722.4.4 contains a provision to allow preparation of
bedloaded 5-digit packages of Presorted BPM irregular parcels weighing
up to 40 pounds when prepared for and entered at DDU rates. M722.5.0
contains provisions for preparing Presorted machinable parcels that
contains the provisions of former M630.6.0 that are amended to clarify
preparation when DBMC rates are claimed and when they are not and to
change the line 2 sack labeling class abbreviation from ``STD B'' to
``PSVC.'' M723 is added that contains the provisions for preparing
Carrier Route BPM. M723.2.0 contains the preparation requirements for
Carrier Route BPM flats. M723.2.1 contains new packaging requirements.
M723.2.2 contains new sacking minimums, requires preparation of carrier
route sacks, and provides for optional preparation of 5-digit scheme
carrier routes sacks for Carrier Route BPM flats. M723.2.3 contains
line 2 sack labels that are amended to change the class abbreviation
from ``STD B'' to ``PSVC.'' M724.2.4 contains a provision to allow
preparation of bedloaded carrier route packages of BPM flats weighing
up to 40 pounds when prepared for and entered at DDU rates. M723.3.0
contains preparation requirement for Carrier Route BPM weighing 10
pounds or less. M723.3.1 sets forth new packaging requirements for
Carrier Route BPM irregular parcels weighing 10 pounds or less.
M723.3.2 contains sack preparation requirements that change the carrier
route sack minimum and make it a required level of sack. M723.3.3
contains line 2 sack labels that are amended to change the class
abbreviation from ``STD B'' to ``PSVC.'' M723.3.4 contains a provision
to allow preparation of bedloaded carrier route packages of BPM
irregular parcels weighing up to 40 pounds when prepared for and
entered at DDU rates. M723.4.1 requires Carrier Route BPM irregular
parcels weighing over 10 pounds to be prepared only in direct carrier
route sacks containing a minimum of 20 pounds of mail. M723.5.1 permits
machinable parcels to qualify for Carrier Route BPM rates only if
prepared in a direct carrier route sack that contains a minimum of 10
addressed pieces or 20 pounds. M730 is added to contain standards for
Media Mail (formerly in M630.4.0) and is amended to reflect the
subclass name change to ``Media Mail.'' M730.1.0 contains basic
standards. M730.2.1 contains sack and package on pallet preparation for
5-digit Media Mail rates from former M630.4.4 amended to change
``bundles'' to ``packages'' and to remove ``/1,000 cubic inches.''
M730.2.2 (formerly M630.4.5) contains sack preparation for BMC Media
Mail rates and is amended to remove ``/1,000 cubic inches.'' M730.2.3
contains Line 2 sack label information for Media Mail (formerly in
M630.4.6) amended to change ``STD'' and ``STD B'' to ``PSVC.'' M740 is
added that contains the standards for Library Mail in former M630.5.0.
M740.1.0 contains basic standards for Library Mail in former M630.5.1
through 5.3, amended to discontinue use of the ``Library Rate'' marking
beginning January 1, 2002. M740.2.1 contains sack preparation
requirements for the 5-digit Library Mail rates from former M630.5.4
amended to remove ``/1,000 cubic inches.'' M740.2.2 contains sack
preparation requirements for the BMC Library Mail rates from former
M630.5.5 amended to remove   ``1,000 cubic inches.'' M740.2.3 contains
Line 2 sack label information for Library Mail from former M630.5.6
amended to change ``STD'' and ``STD B'' to ``PSVC.''
    M820.1.2 is amended to incorporate the proposed separate rates for
5-digit and 3-digit First-Class automation flats. M820.1.5 is amended
to exclude First-Class automation flats prepared under the new tray-
based preparation rules from package preparation standards. M820.1.11
is added to prohibit combining FSM 881 and FSM 1,000 mailpieces in the
same tray when the new tray-based preparation option for First-Class
Mail automation flats is used. M820.2.1 is amended to make preparation
of 5-digit packages for First-Class automation flats optional. M820.2.2
is amended to make preparation of 5-digit trays for First-Class
automation flats optional. M820.3.0 is added to provide for an optional
tray-based preparation for First-Class automation flats. M910.1.2 is
amended to change the reference ``M820'' to the more specific reference
``M820.2.1'' so that it is clear the mail must be packaged and must not
be prepared under the new option for First-Class Mail automation flats
in M820.3.0 for tray-based preparation.

P  Postage and Payment Methods

    P011.1.1b is amended by renumbering 1.1b through 1.1e as 1.1c
through 1.1f and add new 1.1b to include prepayment conditions for
merchandise return service. P011.3.3 and 3.4 are added to clarify
standards for advance deposit accounts and annual accounting fees. A
separate annual accounting fee must be paid for each special service
deducted from the same account. P012.2.2 is amended to include in the
body elements of the standardized documentation tray levels and tray
destinations when choosing the new tray-based preparation option for
Automation First-Class flat mailings. P013.1.4 and P013.1.5 is amended
to reflect the proper affixing of postage to other than single-piece
rate mailings and affixing postage to single-piece rate mailings.
P012.2.3 is amended to add a new table to include the proposed rate
level and abbreviations for Automation First-Class Mail when opting to
prepare tray-based presorts. P013.2.4 is revised to reflect the new
proposed one-pound minimum Priority Mail rate. P013.2.6 is amended to
reflect keys and identification devices weighing more than 13 ounces
but no more than one-pound would be charged the new one-pound rate.
Computing and affixing postage on Package Services mail is clarified
and the minimum postage rate computation for Presorted and Carrier
route Bound Printed Matter is clarified.

[[Page 52497]]

P014.2.4I is amended to include when the destination entry mailing fee
is eligible for a full (100%) refund. P022.1.2 is amended by removing
payment with postage due stamps from the second sentence. P070.5.4 is
amended by replacing ``Special Standard Mail'' with ``Media Mail'' and
to include the inter-BMC/ASF rates to the rating of unmarked parcels.
P600.4.0 and 5.0 are added to clarify eligibility for barcoded
discounts and payment methods with special services. Current P700,
Special Postage Payment Systems, is redesignated as P900. Current P710,
P720, P730, P750, and P760 are redesignated as P910, P920, P930, P950,
and P960, respectively. A new P700 is created from P600 for Package
Services with the only change in content being the name change from
Standard Mail (B) to Package Services.

R  Rates and Fees

    The entire module is revised to reflect new rates and fees for all
classes of mail.

S  Special Services

    S010.2.1 is amended to show that the sender of a merchandise return
service parcel may file a claim for loss if the sender has purchased
the insurance.
    S911.1.5 is amended to add Signature Confirmation as an additional
service that may be combined with registered mail. S912.1.4 is amended
to specify the additional services that may be combined with certified
mail and S912.1.5 is amended to clarify the standards for a delivery
record. S912.2.5a is amended to specify the form number used by
customers. S913.1.2 and 1.3 are amended to show that bulk insurance may
be added to Standard Mail pieces that are subject to the residual shape
surcharge and to remove the required ``Standard Mail Enclosed''
marking. S913.1.5 is amended to add Signature Confirmation as an
additional service that may be combined with insurance. S913.1.6 is
added to clarify that customers may request a delivery record after
mailing. S913.4.0 is amended to change ``parcel'' to ``item.''
    S914.1.1 is amended to show that certificate of mailing is evidence
that mail has been presented for mailing but does not provide a record
of delivery. S914.1.2, 1.3, and 1.4 are rewritten for clarity; there
are no changes to these standards for bulk certificate of mailing.
S914.1.7 is added to specify the additional services that may be
combined with certificate of mailing.
    S915.1.1 is amended to show that the return receipt is mailed back
to the sender. S915.1.2 is amended to show the classes of mail that are
eligible for return receipt service and the prerequisite services.
S915.1.7 is added to specify the additional services that may be
combined with return receipt. S915.2.2 is amended to clarify how to
apply for a delivery record after mailing. S915.2.3 is added to specify
the time limit for requesting a delivery record after mailing. S916.1.2
is amended to clarify that restricted delivery cannot be used with
Standard Mail. S916.1.7 is added to specify the additional services
that may be combined with restricted delivery, including new Signature
Confirmation service. S917.1.1 is amended to show that the return
receipt is mailed back to the sender. S917.1.2 is amended to show that
return receipt for merchandise service is available for Standard Mail
pieces that are subject to the residual shape surcharge. S917.1.3 is
amended to specify the special services that may be combined with
return receipt for merchandise. S917.2.7 is added to clarify how
mailers may request a delivery record if return receipt service was not
provided. S917.3.0 is amended to remove information about the delivery
record.
    S918.1.2 is amended to show that electronic option Delivery
Confirmation is available for Standard Mail pieces that are subject to
the residual shape surcharge. S918.1.3 is amended to show that Delivery
Confirmation service is not available for Standard Mail cards, letters,
and flats (i.e., pieces that are not subject to the residual shape
surcharge). The last sentence of S918.5.0a is deleted to eliminate
redundancy.
    New unit S919 is added for Signature Confirmation service.
    S921.1.1 is amended to show the new $1,000 limit for COD and to
clarify that recipients who pay CODs with cash will be charged the
applicable money order fee(s). S921.1.4 is amended to specify the
additional services that may be combined with COD.
    S922.3.4 and 3.5 are added to add a new classification of high-
volume qualified business reply mail (QBRM) that includes a quarterly
fee and a lower per-piece charge. Renumbered S922.3.6 is revised to
clarify that the maintenance fee applies only to nonletter-size weight
averaged BRM.
    S923.1.1, 1.3, and 2.7 are amended to remove references to the per-
piece fee for pieces returned through merchandise return service (MRS).
S923.1.11 is amended and 1.12 is removed to show that unmarked MRS
pieces will be treated as Parcel Post. S923.2.3 is amended to clarify
references to the annual accounting fee. S923.3.0 is amended in its
entirety to clarify how postage is paid on returned pieces, to remove
references to the per-piece charge, and to add the annual accounting
fee for the required advance deposit account. S923.4.1 and 4.2 are
amended to show that the sender (the person using the merchandise
return service label to return a parcel to the permit holder) may add
insurance to a MRS parcel at their own discretion and expense.
S923.5.6c is amended to clarify that rate markings are optional on MRS
pieces. All of the exhibits in S923 are amended to remove references to
the per-piece fee.
    S924.1.1 is amended to add a sentence about payment information for
Bulk Parcel Return Service (BPRS). S924.1.4 is added to show that no
special services can be added to pieces sent through BPRS. S924.3.2,
3.3, and 3.4 are added to clarify the per-piece charges and to describe
the new annual accounting fee. S924.3.5 is added to specify that the
permit holder is responsible for payment of all applicable fees.
Exhibit S924.5.0 is amended to change the class marking to ``Standard
Mail.'' S930.1.3 is amended to specify that Signature Confirmation
service can be combined with special handling. S930.1.7 is added to
clarify that the Parcel Post nonmachinable surcharge is not added to
parcels sent special handling. S930.2.3 is amended to specify the
additional services that may be combined with parcel airlift service
(PAL).
    Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on
the following revisions of the Domestic Mail Manual (DMM), incorporated
by reference in the Code of Federal Regulations. See 39 CFR part 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR Part 111 continues to read as
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414,
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise the following sections of the Domestic Mail Manual (DMM)
to read as follows:

A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *

[[Page 52498]]

    [Amend 1.2 by replacing ``Standard Mail (A), Standard Mail (B),''
with ``Standard Mail, Package Services,'' no other changes to text.]
* * * * *
    [Amend 1.6 by replacing ``Standard Mail'' with ``Standard Mail, and
Package Services''; and by replacing ``E600'' with ``E600, and E700'';
no other changes to text.]
* * * * *
4.0  RETURN ADDRESS
* * * * *
    [Amend 4.3g by replacing ``Standard Mail (B)'' with ``Package
Services''; no other changes to text.]
* * * * *

A060  Detached Address Labels (DALs)

1.0  USE
    [Amend 1.2 and 1.3 by changing ``Standard Mail (A)'' to ``Standard
Mail''; no other changes to text.]
    [Revise 1.4 to reflect the elimination of the local zone and to add
new 5-digit preparation and entry standards to read as follows:]

1.4  Bound Printed Matter

    Mailings of unaddressed pieces of Bound Printed Matter may be
mailed with DALs when:
    a. The mail is prepared on 5-digit pallets meeting the standards in
M040 and M045, except that for flat-size mail, separate 5-digit pallets
of Carrier Route and Presorted rate mail are not required. The mail may
not be prepared on pallets when the Drop Ship Product indicates that
the delivery unit that serves the 5-digit pallet destination cannot
handle pallets. The destination delivery unit is determined using the
Drop Ship Product under the provisions for the DDU rate in E752. (For
such delivery units, mail with DALs must be prepared in sacks.) The
trays or cartons of DALs must be prepared under 3.0 and placed on the
same pallet as the pieces and must be stretch-wrapped together as one
unit.
    b. The mail is prepared in 5-digit sacks and entered at the
destination delivery unit. The destination delivery unit is determined
using the Drop Ship Product under the provisions for the DDU rate in
E752. DALs must be packaged under 3.0 and presented to the destination
delivery unit with the accompanying items to be distributed with the
DALs.
* * * * *
    [Add a new 1.7 to read as follows:]

1.7  Special Services

    Items mailed with DALs may not be combined with any special
services.
* * * * *
3.0  MAIL PREPARATION
* * * * *
    [Remove 3.7 and 3.8.]
* * * * *
4.0  DISPOSITION OF EXCESS OR UNDELIVERABLE MATERIAL
* * * * *
    [Amend 4.2 by adding additional restrictions to undeliverable Bound
Printed Matter to read as follows:]

4.2  Undeliverable DAL

    A DAL that is undeliverable-as-addressed (UAA) is handled under
F010. An UAA Standard Mail or Bound Printed Matter DAL is disposed of
as waste. The accompanying item is treated as specified by the mailer
under 4.1.
5.0  POSTAGE
* * * * *
    [Amend 5.2b by changing ``Standard Mail (A)'' to ``Standard Mail'';
no other changes to text.]
    [Amend 5.3 by replacing ``Standard Mail (B)'' with ``Package
Services mail''; no other changes to text.]

C  CHARACTERISTICS AND CONTENT

C000  General Information

C010  General Mailability Standards

1.0  MINIMUM AND MAXIMUM DIMENSIONS
* * * * *
    [Amend 1.3 by changing ``(see C600)'' to ``(see C700)''.]
* * * * *

C020  Restricted or Nonmailable Articles and Substances

* * * * *

C023  Hazardous Materials

1.0 GENERAL
    [Amend 1.1f by replacing ``Standard Mail'' with ``Standard Mail or
Package Services''; no other changes to text.]
* * * * *

C050   Mail Processing Categories

1.0  BASIC INFORMATION
    [Amend the second sentence of 1.0 to reflect changes in class names
to read as follows:]
    * * * Unless permitted by standard, any mailing at other than the
single-piece Express Mail, Priority Mail, First-Class Mail, or Package
Services rates may not contain pieces from more than one processing
category.
* * * * *
    [Amend Exhibit 2.0 to show new weight limit for machinable
parcels.]
* * * * *
4.0  MACHINABLE PARCEL

4.1  Criteria

    [Amend 4.1a to decrease the minimum piece weight from 8 ounces to 6
ounces to read as follows:]
    A machinable parcel (see Exhibit 2.0) is any piece that is:
    a. Not less than 6 inches long, 3 inches high, \1/4\ inch thick,
and 6 ounces in weight. (A mailpiece exactly \1/4\ inch thick is
subject to the 3\1/2\-inch height minimum under C010.)
* * * * *
    [Remove 4.1c.]

4.2  Soft Goods

    [Amend 4.2 to include reference to C010 for packaging standards to
read as follows:]
    Soft goods wrapped in paper or plastic bags and enveloped printed
matter weighing up to 5 pounds are machinable only if all applicable
packaging standards in C010 are met.

4.3  Exception

    [Amend 4.3 to clarify the exception authority for machinable
parcels to read as follows:]
    Some parcels may be successfully processed on BMC parcel sorters
although they do not conform to the general machinability criteria in
4.1. A destinating BMC plant manager may authorize a mailer to enter
such parcels as machinable parcels rather than as irregular parcels if
the parcels are tested on BMC parcel sorters and prove to be
machinable. In addition, the following requirements must be met: all
mailed pieces must be machinable, properly labeled, bear delivery
addresses located within the service area of the authorizing BMC, and
be entered at a post office within the service area of the authorizing
BMC.
* * * * *

C200  Periodicals

* * * * *
2.0  IMPERMISSIBLE MAILPIECE COMPONENTS
* * * * *

2.2  Prohibited Matter

    [Amend 2.2c to replace ``Standard Mail'' with ``Standard Mail, or
Package Services''; no other changes to text.]
* * * * *
    [Amend heading and text of 2.4 by replacing ``Standard Mail (B)''
with ``Package Services''; no other changes to text.]
* * * * *
    [Add new section 5.0 to read as follows:]

[[Page 52499]]

5.0  PHYSICAL LIMITATIONS
    Periodicals mail may not weigh more than 70 pounds or measure more
than 108 inches in length and girth combined. Additional size
limitations apply to individual Periodicals rate categories.
* * * * *

C600  Standard Mail

1.0  DIMENSIONS
    [Revise the heading of 1.1 to read as follows:]

1.1  Basic Standards

    [Amend 1.1 and Exhibit 1.1d by changing ``Standard Mail (A)'' to
``Standard Mail.'']
* * * * *
    [Redesignate 1.3 as C700.1.0.]
    [Redesignate current 2.0 as C700.2.0.]
    [Add new 2.0 to read as follows:]
2.0  RESIDUAL SHAPE SURCHARGE
    Mail that is prepared as a parcel or is not letter-size or flat-
size as defined in C050 is subject to a residual shape surcharge. There
is one surcharge for mail entered at Regular and Nonprofit Presorted
rates and a different surcharge for mail entered at Enhanced Carrier
Route and Nonprofit Enhanced Carrier Route rates. See E610 and R600.
* * * * *
    [Add new C700 as follows:]

C700  Package Services

    [Redesignate C600.1.3 as C700.1.0 and amend the heading by
replacing ``Standard Mail (B)'' with ``Package Services''; no other
changes to text.]
    [Redesignate C600.2.0 as C700.2.0 and amend to extend the
nonmachinable surcharge to intra-BMC and Parcel Select-DBMC pieces to
read as follows:]
2.0  NONMACHINABLE SURCHARGE
    Items described in E711 that are mailed at the inter-BMC/ASF,
intra-BMC, or Parcel Select-DBMC Parcel Post rates are subject to a
nonmachinable surcharge unless the applicable special handling fee is
paid. An oversized parcel as described in 1.0c is not subject to the
surcharge.
    [Add new 3.0 to read as follows:]
3.0  POSTAL INSPECTION
    Package Services mail is not sealed against postal inspection.
Package Services mail may be prepared for automated processing but must
allow easy examination.

C800  Automation-Compatible Mail

C810  Letters and Cards

* * * * *
2.0  DIMENSIONS
* * * * *
    [Redesignate 2.3 as 2.4; amend redesignated 2.4 to provide for new
maximum weight limits and by deleting 2.4d through f; and add new 2.3
to read as follows:]

2.3  Determining Height and Length

    The length of an automation letter piece is the dimension parallel
to the address when the address is read. The height is the dimension
perpendicular to the length.

2.4  Maximum Weight

    Maximum weight limits are as follows:
    a. Upgradable Presorted First-Class Mail and Upgradable Presorted
Standard Mail: 2.5 ounces (0.1563 pound).
    b. Automation First-Class Mail, automation Periodicals, and
automation Standard Mail: 3 ounces (0.1875 pound).
    c. Automation First-Class Mail, automation Periodicals, and
automation Standard Mail heavy letters: 3.5 ounces (0.2188 pound).
* * * * *
7.0  ADDITIONAL STANDARDS FOR SPECIFIC TYPES OF PIECES
* * * * *

7.5  Heavy Letter Mail

    [Amend 7.5 by changing the reference ``2.3'' to ``2.4''; no other
changes to text.]
* * * * *

C820  Flats

* * * * *
3.0  DIMENSIONS FOR FSM 1000 PROCESSING
* * * * *

3.4  Maximum Weight

    [Amend 3.4 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
* * * * *

C840  Barcoding Standards for Letters and Flats

* * * * *
2.0  BARCODE LOCATION--LETTER-SIZE PIECE

2.1  Barcode Clear Zone

    [Amend 2.1 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
* * * * *
    [Amend title of 850 by replacing ``Standard Mail (B)'' with
``Standard Mail and Package Services'' to read as follows:]

C850  Barcoding Standards for Standard Mail and Package Services
Machinable Parcels

1.0  GENERAL
    [Amend 1.1 by replacing ``Standard Mail (B)'' with ``Standard Mail
and Package Services mail,'' and replace ``E630'' with ``E620, E720,
E730, or E740''; no other changes to text.]
* * * * *
    [Amend 1.4 by replacing ``Standard Mail (B)'' with ``Standard Mail
and Package Services mail'' and replace ``E630'' with ``E620, E720,
E730, or E740''; no other changes to text.]
* * * * *

D  DEPOSIT, COLLECTION, AND DELIVERY

D000  Basic Information

D010  Pickup Service

* * * * *
2.0  POSTAGE AND FEES
* * * * *
    [Amend 2.2 by changing ``R600'' to ``R700''.]
* * * * *

D200  Periodicals

D210  Basic Information

* * * * *
2.0  MAIL DEPOSIT
    [Amend 2.0 by replacing ``Standard Mail'' with ``Standard Mail and
Package Services mail''; no other changes to text.]
* * * * *

D600  Standard Mail

* * * * *
2.0  MAIL DEPOSIT
    [Amend 2.0 by removing 2.1 and 2.3; redesignating 2.2 and 2.4 as
2.1 and 2.2, respectively; revising the heading and amending the
contents of redesignated 2.1 to remove the term ``bulk rates,'' provide
for mail entered under plant-verified drop shipment procedures, and
amending the text of redesignated 2.2 for clarity to read as follows:]

2.1  General

    Standard Mail must be presented at the post office where the permit
or license is held and the presort mailing fee is paid. Mailings must
be presented at the locations and times specified by the postmaster.
Plant-verified drop shipment (PVDS) mailings must be presented for
verification, acceptance, and entry under P750. Plant-loaded

[[Page 52500]]

mailings must be presented, verified, accepted, and entered as
specified by the plant load agreement and applicable standards. Metered
Standard Mail may be deposited at other than the licensing post office
only as permitted under D072. Nonprofit Standard Mail must be presented
only at post offices where the organization producing the mailing has
an approved nonprofit authorization (E670).

2.2  Separation of Mailings

    Pieces at different rates (e.g., 3/5 and basic) may be combined in
the same mailing as provided in M011. Separate mailings may be reported
on the same postage statement if the pieces in the mailings are in the
same processing category (C050), are part of the same mailing job, and
are presented for verification at the same time.
    [Add new D700 to read as follows:]

D700  Package Services

1.0  SERVICE OBJECTIVES
    The USPS does not guarantee the delivery of Package Services mail
(Parcel Post, Bound Printed Matter, Media Mail, and Library Mail)
within a specified time. Package Services mail might receive deferred
service. The local post office can provide more information concerning
delivery times within its area.
2.0  MAIL DEPOSIT

2.1  Single-Piece Rate Mailings

    Single-piece rate Package Services mail must be deposited at a time
and place specified by the postmaster or designee at the office of
mailing. Metered mail may be deposited at other than the licensing post
office only as permitted under D072. Permit imprint mail must be
presented at the post office under P040 or P700.

2.2  Presorted, Carrier Route, Destination Entry, and Barcoded
Discount Mailings

    All presorted, carrier route, destination entry, barcoded discount
mailings must be presented for verification and acceptance at the post
office where the permit or license is held and, if applicable, where
the presort mailing fee or destination entry mailing fee is paid. All
such mailings must be deposited at locations and times specified by the
postmaster or designee at the office that verifies and accepts the
mailing. Plant-verified drop shipment (PVDS) mailings must be presented
for verification, acceptance, and entry under P750. Plant-loaded
mailings must be presented as specified by the applicable standards and
the plant load agreement. Metered mail may be deposited at other than
the licensing post office only as permitted under D072.

2.3  Zoned Rates

    Pieces paid at zoned rates must be entered at the post office from
which the applicable zoned rate postage is computed unless an exception
is permitted under E710.

2.4  Drop Shipment Information

    Essential information for entering drop shipment Package Services
mailings at specific postal facilities can be found in the Drop Ship
Product maintained by the National Customer Support Center (NCSC) (see
G043). There is a charge for the Drop Ship Product (E750).

D900  Other Delivery Services

D910  Post Office Box Service

1.0  BASIC INFORMATION
* * * * *

1.5  Box Availability

    [Amend 1.5 by adding the following sentence at the end of the
paragraph:]
    * * * Regardless of the box size applied for, customers must pay
the correct fee for the service they receive.
    [Redesignate current 1.7 as 1.8. Add new 1.7 to read as follows:]

1.7  Service Period

    Post office box service is provided in six-month increments.
    [Amend redesignated 1.8 to add the new key duplication fee and the
lock resetting fee read as follows:]

1.8  Fees

    Post office box fees for each six-month period are listed in R900.
Each box customer is charged a refundable deposit for post office box
keys. Customers also are charged fees for duplicate and replacement
post office box keys and for changing locks on post office boxes.
* * * * *
3.0  CONDITIONS OF USE
    [Amend 3.1 by clarifying text to read as follows:]

3.1  Receiving Mail

    A box customer may receive through the box any mail that is
properly addressed to that box number.
* * * * *
    [Amend 3.7 by clarifying to read as follows:]

3.7  Forwarding

    A post office box may not be used when the primary purpose is to
have the USPS forward or transfer mail to another address free of
charge.
* * * * *
4.0  BASIS OF FEES AND PAYMENT
    [Amend 4.1 to change the basis of post office box fees to read as
follows:]

4.1  General

    Post office box fees are based on the size of box provided and the
fee group to which the box's 5-digit ZIP Code is assigned.
* * * * *
    [Remove 4.3. Redesignate 4.4 through 4.11 as 4.3 through 4.10,
respectively. Amend redesignated 4.3 to read as follows:]

4.3  Fee Changes

    A change in post office box service fees applicable to a given 5-
digit ZIP Code can arise from a general fee change. In addition, the
Manager, Special Services, may authorize the reassignment of one or
more 5-digit ZIP Codes to the next higher or lower fee group if the
past history of fee group assignments was in error. The Postal Service
also may regroup 5-digit ZIP Codes. No ZIP Code may be moved more than
once a calendar year and may be moved only into the next higher or
lower fee group. Any change in post office box service fees takes
effect on the date of the action that caused the change unless an
official announcement specifies another date. The post office box
service fee charged is that in effect on the date of payment.

4.4  Payment

    [Amend 4.4 to specify when post office box fees must be paid to
read as follows:]
    All fees for post office box service are for a 6-month period.
Except under 4.6, 4.7, and 4.10, fees must be paid in advance for each
6-month period. The fee may be paid for two periods at a time (i.e., up
to one year in advance), but not more. The fee that must be paid is the
one that is in effect on the day that the fee is paid. Fees may be paid
using cash, credit or debit card, or check or money order payable to
the postmaster. A mailed payment must be received by the postmaster on
or before the due date.
* * * * *
    [Amend the heading of 4.7 by removing ``for Group D Offices'' to
read as follows:]

4.7  Exception

    [Amend the first sentence of 4.8 by removing reference to ``Group
D'' to read as follows:]

[[Page 52501]]

    Postmasters at offices with fewer than 500 post office boxes may
set April 1 and October 1 as the beginning of payment periods for box
customers in their offices. * * *
* * * * *
    [Amend 5.0 by revising 5.1 through 5.3 to show the new fee group
assignments:]
5.0  FEE GROUP ASSIGNMENTS

5.1  Regular Fee Groups

    Post office boxes are assigned to fee groups listed in R900 based
upon estimates of the market-based cost of the space occupied by post
office boxes in each 5-digit ZIP Code. Local post offices can provide
information about fees for a particular ZIP Code.

5.2  Free Box Service (Group E)

    Customers may qualify for a free (Group E) post office box if their
physical address or business location meets all of the following
criteria:
    a. The physical address or business location is within the
geographic delivery ZIP Code boundaries administered by a post office.
    b. The physical address or business location constitutes a
potential carrier delivery point of service.
    c. The USPS chooses not to provide carrier delivery to the physical
address or business location.
    d. The customer does not receive carrier delivery via an out-of-
bounds delivery receptacle.

5.3  Additional Standards for Free Box Service

    Only one free (Group E) box may be obtained for each potential
carrier delivery point of service. Eligibility for Group E boxes does
not extend to individual tenants, contractors, employees, or other
individuals receiving or eligible to receive single-point delivery such
as delivery to a hotel, college, military installation, or transient
trailer park. A customer must pay the applicable fee for each
additional box requested beyond the initial box obtained at the Group E
fee.
    [Remove Exhibits 5.3a and 5.3b.]
6.0  FEE REFUND

6.1  Calculation

    [Amend 6.1 to clarify fee calculations to read as follows:]
    When post office box service is terminated or surrendered by the
customer, the unused portion of the fee may be refunded as follows:
    a. If service is discontinued any time within the first 3 months of
the service period, then one-half of the fee is refunded.
    b. If service is discontinued after the beginning of the fourth
month of the service period, then none of the fee is refunded.
    c. If service is discontinued and the customer has prepaid for the
next semi-annual service period, then the entire fee for that period is
refunded.
* * * * *
    [Amend the heading of 7.0 by adding reference to ``Locks'' to read
as follows:]
7.0  KEYS AND LOCKS

7.1  Key Deposit

    [Amend 7.1 to clarify that customers must pay the refundable key
deposit for all keys:]
    Two post office box keys are initially issued to each new box
customer. Box customers must pay a refundable key deposit on each of
these keys. The refundable key deposit also must be paid on each
additional key requested under 6.2. When box service is terminated, the
key deposit is refunded to the customer for each key that is returned
to the post office where the box was issued.

7.2  Key Fee

    [Revise 7.2 to add a reference to the key fee to read as follows:]
    A box customer may obtain additional or replacement keys by
submitting Form 1094 and paying the refundable key deposit and the key
fee in R900. The fee for replacement or duplicate keys is not
refundable. Worn or broken keys are replaced without charge when
returned to the post office where the box was provided.
* * * * *
    [Add new 7.4 to explain the lock replacement fee read as follows:]

7.4  Lock Replacement

    The primary box customer (box applicant) may request that the post
office box lock be changed. To change the lock, the customer must first
pay the applicable lock fee in R900. Lock fees are charged for
replacing keyed locks and combination locks and for re-setting
combination locks. Lock fees are not refundable. Customers may turn in
post office keys for the old lock and get a refund of the key deposit.
Two keys are provided with the new lock, with a refundable deposit for
each key charged under 7.1. Customers may obtain additional keys for
the new lock under 7.2.
* * * * *

D920  Caller Service

1.0  BASIC INFORMATION
* * * * *

1.4  Caller Number Service

    [Remove the last two sentences of 1.4.]
    [Redesignate current 1.5 through 1.9 as 1.6 through 1.10,
respectively. Add new 1.5 to read as follows:]

1.5  Reserving a Caller Number

    Customers may reserve a caller number for future use by paying the
caller number reserve fee in R900. The postmaster determines the
reserved numbers and may restrict the availability of this service.
* * * * *
3.0  CONDITIONS OF USE
    [Amend 3.4 by clarifying to read as follows:]

3.4  Forwarding

    Caller service may not be used when the primary purpose is to have
the USPS forward or transfer mail to another address free of charge.
* * * * *
4.0  BASIS OF FEES AND PAYMENT

4.1  Caller Service Fee

    [Amend 4.1 by clarifying text to read as follows:]
    Customers must pay the caller service fee listed in R900. The fee
must be paid for each caller number or separation used, with the
following exceptions:
    a. If a caller uses many caller numbers, but receives only a bulk
delivery of mail not separated to those numbers either because this
mail is sorted to the customer's unique 5-digit ZIP Code or because
sortation is made by caller name or other identification, then the
caller service fee is charged only for each separation actually made.
The reserved number fee is charged for each of the caller numbers to
which mail received by the caller is addressed.
    b. When a post office box service applicant is provided a single
caller service separation because of a shortage in available post
offices boxes, then the fee charged is the fee for the largest
installed post office box. In this instance, neither the caller service
fee nor the reserved number fee is charged.
    [Remove Exhibit 4.1, Caller Service Groups.]

4.2  Reserved Number

    [Amend 4.2 to clarify that reserved number fees are not refundable
to read as follows:]
    The reserved call number fee in R900 is charged per calendar year
or any part of such a calendar year for each number reserved by a
customer. Reserved call number fees are not prorated.

[[Page 52502]]

4.3  Fee Changes

    [Amend 4.3 by removing references to 4.1b and 4.1 to read as
follows:]
    A change in caller service fees (including reserved number fees)
can arise from a general fee change. Any change in caller service fees
takes effect on the date of the action that caused the change unless an
official announcement specifies another date. If a caller service fee
is increased, no customer must pay at the new rate until the end of the
period already paid, and no retroactive adjustment is to be made for a
payment received before the date of the change.
* * * * *

4.5  Payment

    [Amend 4.5 to clarify the payment periods for caller service to
read as follows:]
    All fees are for a 6-month period. Fees must be paid in advance for
each 6-month period. The fee may be paid for two periods at a time
(i.e., up to one year in advance), but not more. The fee that must be
paid is the one that is in effect on the day that the fee is paid. Fees
may be paid using cash, credit or debit card, or check or money order
payable to the postmaster. A mailed payment must be received by the
postmaster on or before the due date.
* * * * *
    [Amend the heading of 4.8 by removing ``for Group D Offices'' to
read as follows:]

4.8  Exception

    [Amend the first sentence of 4.8 by removing reference to Group D
offices to read as follows:]
    Postmasters at offices with fewer than 500 post office boxes may
set April 1 and October 1 as the beginning of payment periods for
caller service customers in their offices. * * *
* * * * *
5.0  FEE REFUND

5.1  Discontinued Number

    [Amend 5.1 to clarify when refunds can be made to read as follows:]
    When caller service is terminated or surrendered by the customer,
the unused portion of the fee may be refunded as follows:
    a. If service is discontinued any time within the first 3 months of
the service period, then one-half of the fee is refunded.
    b. If service is discontinued after the beginning of the fourth
month of the service period, then none of the fee is refunded.
    c. If service is discontinued and the customer has prepaid for the
next semi-annual service period, then the entire fee for that period is
refunded.
* * * * *
    [Add new 5.3 to show that the reserved number fee is not refundable
to read as follows:]

5.3  Reserved Number Fee

    The reserved number fee is not refundable.
* * * * *

E.  Eligibility

E000  Special Eligibility Standards

E010  Overseas Military Mail

1.0  BASIC STANDARDS
* * * * *

1.4  Preparation

    [Amend 1.4 by changing ``C600'' to ``C700'' and by changing
``Standard Mail (B)'' to ``Package Services'' to read as follows:]
    Items sent by air or surface mail are subject to the size and
weight standards in C100 or C700 unless limited further by this
standard. Mail must be addressed under A010. Postage at the applicable
Priority Mail or Package Services rates is charged for parcels sent by
air or surface transportation.
* * * * *

1.6  Restriction

    [Amend the first sentence of 1.6 for added clarity and to refer to
the new class and subclass names ``Package Services'' and ``Media
Mail,'' respectively, to read as follows:]
    Regardless of the postage payment method, the following types of
mail weighing 16 ounces or more must be presented at a post office
retail counter: all single-piece rate Priority Mail and all single-
piece rate Package Services mail (Parcel Post, Bound Printed Matter,
Media Mail, Library Mail).* * *
* * * * *
3.0  MILITARY ORDINARY MAIL (MOM)
    [Amend 3.0b by changing reference to ``Standard Mail (A), or
Standard Mail (B)'' to ``Standard Mail, or Package Services mail''; no
other changes to text.]

E020  Department of State Mail

1.0  AVAILABILITY
* * * * *
    [Add new 1.4 to show that Express Mail is not eligible to be mailed
through Department of State Mail:]

1.4  Express Mail

    Express Mail may not be sent through the Department of State.
2.0  CONDITIONS FOR AUTHORIZED MAIL
* * * * *

2.3  Special Services

    [Amend 2.3 by removing references to Express Mail, which has been
moved to new 1.4, and by adding Signature Confirmation:]
    The following special services are not available for mail
transmitted through the Department of State: certified, COD, Delivery
Confirmation, insured, registered, return receipt for merchandise,
Signature Confirmation, and special handling. If one of those services
is requested on this mail, it is returned to the sender endorsed
``Service Not Available.''
* * * * *

E040  Free Matter for the Blind and Other Handicapped Persons

* * * * *
4.0  PREPARATION

4.1  Basic Standards

    [Amend 4.1b by changing ``C600'' to ``C700.'']
* * * * *

E060  Official Mail (Penalty)

* * * * *
5.0  SERVICES, CLASSES, RATES, PREPARATION, AND DETENTION
* * * * *

5.3  Basic Preparation

    [Amend 5.3d to require the Parcel Post marking to read as follows:]
    Penalty mail must:
* * * * *
    d. For all methods of payment, be endorsed for class or rate except
for single-piece rate First-Class Mail not exceeding 13 ounces.
* * * * *
7.0  PENALTY METER
* * * * *
    [Amend 7.7 by changing title and references from ``On-Site
Setting'' to ``Meter Service'' to read as follows:]

7.7  Meter Service

    An agency wanting on-site meter service must pay the required fee
in cash or with a check when the meter is set.
* * * * *
10.0  GENERAL STANDARDS FOR PENALTY REPLY MAIL
    [Amend 10.1 by deleting the last phrase in the last sentence to
read as follows:]

[[Page 52503]]

10.1  Restriction to Approved Formats

    An agency may distribute penalty envelopes, cards, cartons, or
labels to any person, concern, or organization. To distribute penalty
reply mail, agencies must use the penalty business reply mail format;
the penalty metered reply format; penalty mail adhesive stamps or
penalty mail stamped stationery; or the penalty merchandise return
service label.
* * * * *
11.0  PENALTY BUSINESS REPLY MAIL (BRM)

11.1  General

    [Amend 11.1 to add QBRM as an option for penalty mailers and to
clarify payment of the annual accounting fee to read as follows:]
    An agency may participate in business reply mail service (including
Qualified Business Reply Mail). Standards for business reply mail are
in S922. Agencies can choose to pay postage and per piece charges for
low-volume BRM with cash upon delivery or through an advance deposit
account. If an agency chooses to pay through an advance deposit
account, they must pay an annual accounting fee, which is billed
through their OMAS account. The postage, fees, and per piece charges
are the same as those for private-sector customers (R900).
* * * * *
12.0  PENALTY MERCHANDISE RETURN SERVICE

12.1  Description

    [Amend 12.1 by replacing ``Standard Mail (B)'' with ``Package
Services mail'' and replacing ``Special Standard Mail'' with ``Media
Mail'' and adding a reference to S923 to read as follows:]
    Merchandise return service allows an authorized permit holder to
pay the postage and special service fees on single-piece rate First-
Class Mail, Priority Mail, and Package Services (Parcel Post, Bound
Printed Matter, and Media Mail) that is returned by the permit holder's
customers via a special label produced by the permit holder as
specified by S923.
    [Redesignate current 12.2 through 12.12 as 12.4 through 12.14,
respectively, add new 12.2 to show rate and fee application, and add
new 12.3 to show the required accounting fee to read as follows:]

12.2  Postage and Special Service Fees

    The standards for payment of postage and fees are:
    a. The permit holder guarantees payment of the proper postage and
special service fees on all returned merchandise return service
articles distributed under the permit holder's permit number. Postage
is collected for each article from an OMAS postage due account.
    b. Returned parcels are charged single-piece rate postage and
special service fees based on the class or subclass marking on the
label. If a piece is unmarked, it is charged Parcel Post rates. If the
postage for the returned piece is zoned and there is no way to
determine where it was sent from (i.e., no postmark or return address),
then postage is calculated at zone 4 (for Priority Mail) and zone 4
inter-BMC rates (for Parcel Post).
    c. There is no per-piece charge per parcel returned.

12.3  Annual Accounting Fee

    All MRS permit holders are required to pay the annual accounting
fee in R900. This is assessed automatically through OMAS.
* * * * *

12.7  Label Format

    [Amend redesignated 12.7 by changing exhibit numbers from ``Exhibit
12.5a'' to ``Exhibit 12.7a'' and ``Exhibit 12.5b'' to ``Exhibit 12.7b''
and to add new item c to indicate the location of the optional rate
marking.]
* * * * *
    c. Permit holders are encouraged, but are not required, to put the
rate marking in the space to the right and above the ``Merchandise
Return Label'' legend. The marking must be at least 3/16 inch high and
be printed or rubber-stamped. Only the permit holder may apply this
marking.
    [Revise heading and amend content of redesignated 12.8 by
clarifying to read as follows:]

12.8  Insured Mail Indicated by Permit Holder

    The permit holder may obtain insured mail service with MRS.
Indemnity under penalty mail merchandise return is limited to $100.
Items requiring insurance greater than $100 may not be mailed under
penalty merchandise return service. Only Package Services matter (i.e.,
matter not required to be mailed at First-Class Mail rates under E110)
may be insured. Insured mail may be combined with Delivery Confirmation
and special handling, or both. To request insured mail service, the
permit holder must preprint or rubber-stamp ``Insurance Desired by
Permit Holder for $______ (value)'' to the left of and above the
``Merchandise Return Label'' legend and below the ``Total Postage and
Fees Due'' statement on the merchandise return label. The value part of
the endorsement, showing the dollar amount of insurance for the
article, may be handwritten by the permit holder. If insurance is paid
for by the MRS permit holder, then only the MRS permit holder may file
a claim (S010).
    [Redesignate 12.9 through 12.14 as 12.10 through 12.15,
respectively. Add new 12.9 to show that MRS senders may add insurance
at their discretion to read as follows:]

12.9  Insured Mail Added by Sender

    If the permit holder has not indicated insured mail service on the
MRS label, then the sender has the option of adding insurance at their
own cost. There is no limit on the indemnity coverage paid for by the
sender. If insurance is paid by the sender, then only the sender may
file a claim (S010).
    [Amend redesignated 12.10, Registered Mail, by changing ``Exhibit
12.5b'' to ``Exhibit 12.7b''; no other changes to text.]
    [Amend redesignated 12.11, Special Handling, by changing ``Exhibit
12.5a'' to ``Exhibit 12.7a'' and by replacing ``Standard Mail'' with
``Package Services''; no other changes to text.]
    [Remove redesignated 12.12 and 12.13. Redesignate 12.14 and 12.15
as 12.12 and 12.13, respectively.]
* * * * *
15.0  CONTRACTORS
* * * * *

15.2  Preparation

    [Amend 15.2a to add the term ``Package Services'' to read as
follows:]
    Preparation standards for a contractor's penalty mailings include:
    a. First-Class Mail, Standard Mail, and Package Services penalty
mailings must be prepared with penalty permit imprints or penalty
meters. Single-piece rate mailings may also be prepared with penalty
mail stamps.
* * * * *

E070 Mixed Classes

* * * * *
2.0  ATTACHMENTS OF DIFFERENT CLASSES
    [Amend the heading and contents of 2.1 to change ``Standard Mail
(A)'' to ``Standard Mail'' and ``Standard Mail'' to ``Standard Mail, or
Package Services'' to read as follows:]

2.1  First-Class Mail or Standard Mail

    Letters or other pieces of First-Class Mail or Standard Mail may be
placed in an envelope and attached to the address side of a
Periodicals, Standard Mail, or

[[Page 52504]]

Package Services piece. Combination envelopes or containers with
separate parts for the two classes of mail may be used.

2.2  Rate Qualification

    [Amend the introductory sentence of 2.2 by adding ``Package
Services'' to read as follows:]
    If a Periodicals, Standard Mail, or Package Services host piece
qualifies for:
    [Amend 2.2a through 2.2d by replacing ``Standard Mail (A)'' with
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend 3.2b by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
* * * * *
    [Amend 3.3a through 3.3d by replacing ``Standard Mail (A)'' with
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend title of 4.0 by replacing ``Standard Mail'' with ``Standard
Mail and Package Services'' to read as follows:]
4.0  ENCLOSURE IN STANDARD MAIL AND PACKAGE SERVICES PARCEL
    [Amend 4.1 by replacing ``Standard Mail'' with ``Standard Mail and
Package Services mail''; no other changes to text.]
    [Amend 4.2 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; by replacing ``Standard Mail (B) with ``Package Services
mail''; and by replacing ``E600'' with ``E700''; no other changes to
text.]
5.0  INCIDENTAL FIRST-CLASS MAIL ATTACHMENT OR ENCLOSURE
    [Amend 5.0 by replacing ``Standard Mail (A)'' with ``Standard
Mail'' and by replacing ``Standard Mail (B)'' with ``Package Services
mail''; no other changes to text.]
    [Amend the heading of 6.0 by replacing ``Special Standard Mail''
with ``Media Mail'' to read as follows:]
6.0  COMBINED MAILING OF MEDIA MAIL AND BOUND PRINTED MATTER
    [Amend 6.1 by replacing ``Special Standard Mail'' with ``Media
Mail''; no other changes to text.]
    [Revise 6.2 to specify Presorted rate mail must be prepared under
Bound Printed Matter standards to read as follows:]

6.2  Presorted Rates

    Presorted rates may be claimed, subject to the applicable
preparation standards for Bound Printed Matter (M700).
* * * * *

E100  First-Class Mail

E110  Basic Standards

* * * * *
    [Amend 1.2 by replacing ``Standard Mail'' with ``Standard Mail and
Package Services mail'' and by replacing ``Special Standard Mail'' with
``Media Mail''; no other changes to text.]
* * * * *

E120  Priority Mail

* * * * *
2.0  RATES

2.4  Keys and Identification Devices

    [Amend 2.4 by adding reference to the 1-pound rate to read as
follows:]
    Keys and identification devices (identification cards or uncovered
identification tags) that weigh more than 13 ounces but not more than 2
pounds are returned at the applicable 1- or 2-pound Priority Mail rate
plus the fee as shown in R100 if they bear, contain, or have securely
attached the name and complete address of a person, organization, or
concern, with instructions to return the piece to that address and a
statement guaranteeing payment of postage due on delivery.
* * * * *

E130  Nonautomation Rates

* * * * *
2.0  SINGLE-PIECE RATE
* * * * *

2.2  Keys and Identification Devices

    [Amend the first sentence of 2.2 by replacing ``$0.30'' with a
reference to R100 to read as follows:]
    Keys and identification devices (identification cards or uncovered
identification tags) that weigh 13 ounces or less are mailed at the
applicable single-piece letter rate plus the fee as shown in R100 and,
if applicable, the nonstandard surcharge.
    [Redesignate current E130.2.3 as M110.1.0. Add new 2.3 to read as
follows:]

2.3  Preparation

    Single-piece rate mail must be prepared under M110.
* * * * *

E140  Automation Rates

* * * * *
2.0  RATE APPLICATION
* * * * *
    [Revise heading of 2.2 to read as follows:]

2.2  Flats-Package-Based Preparation

    [Amend 2.2 by revising the introductory text, 2.2a, and 2.2b to
read as follows:]
    First-Class Mail automation rates apply to each piece that is
sorted under M820.2.0 or under M910.2.0 into the corresponding
qualifying groups:
    a. Pieces in 5-digit packages of 10 or more pieces qualify for the
5-digit automation rate. (Preparation to qualify for that rate is
optional and need not be done for all 5-digit destinations.)
    b. Pieces in 3-digit packages of 10 or more pieces qualify for the
3-digit automation rate.
    c. Pieces in ADC or mixed ADC packages qualify for the basic
automation rate.
    [Add new 2.3 to read as follows:]

2.3  Flats--Optional Tray-Based Preparation

    First-Class Mail automation rates apply to each piece that is
sorted under M820.3.0 into the corresponding qualifying groups:
    a. Groups of 90 or more pieces in 5-digit trays qualify for the 5-
digit automation rate.
    b. Groups of 90 or more pieces in 3-digit trays qualify for the 3-
digit automation rates.
    c. Groups of fewer than 90 pieces in origin 3-digit trays qualify
for the basic automation rate.
    d. Groups of 90 or more pieces in ADC trays and all pieces in mixed
ADC trays qualify for the basic automation rate.
* * * * *

E150  Qualified Business Reply Mail

* * * * *
2.0  AUTHORIZATION
    [Amend 2.0 by removing the last sentence.]
3.0  RATES AND FEES
* * * * *

3.2  Fees

    [Revise 3.2 to add the QBRM quarterly fee to read as follows:]
    Mailers participating in QBRM must pay an annual permit fee, an
annual accounting fee, a per piece charge for each returned piece and,
at the mailer's option, a quarterly fee. See R900.4.0.

E200  Periodicals

E210  Basic Standards

E211  All Periodicals

* * * * *

[[Page 52505]]

6.0  ELIGIBLE FORMATS
    [Amend 6.1 by replacing ``First-Class Mail or Standard Mail'' with
``First-Class Mail, Standard Mail, or Package Services''; no other
changes to text.]
* * * * *
9.0  BACK NUMBERS AND REPRINTS
    [Amend 9.0 by replacing ``First-Class Mail or Standard Mail'' with
``First-Class Mail, Standard Mail, or Package Services''; no other
changes to text.]
* * * * *
13.0  FEES

13.1  Fee Required

    [Amend 13.1 by revising 13.1d(3) to read as follows:]
    The required fee must accompany an application for:
* * * * *
    d. Reentry (unless excepted in 13.2 or 13.3) to request a:
* * * * *
    (3) Change eligibility from preferred rates or the preferred rate
discount to regular Outside-County rates.
* * * * *

13.2  No Fee

    [Amend 13.2 for clarity to read as follows:]
    No fee is charged if reentry is only to change eligibility to
preferred rates or the preferred rate discount.
* * * * *
    [Remove 14.0.]

E212  Qualification Categories

* * * * *
2.0  PUBLICATIONS OF INSTITUTIONS AND SOCIETIES
* * * * *
    [Remove 2.4.]
* * * * *
4.0  REQUESTER PUBLICATIONS
    [Amend 4.1 by replacing ``Regular'' with ``Outside-County''; no
other changes to text.]
* * * * *
6.0  NEWS AGENT REGISTRY
* * * * *
    [Amend 6.4 by replacing ``Regular'' with ``Outside-County''; no
other changes to text.]
    [Amend 6.5 by replacing ``Standard Mail'' with ``Standard Mail or
Package Services''; no other changes to text.]

E213  Periodicals Mailing Privileges

* * * * *
2.0  MAILING WHILE APPLICATION PENDING
    [Amend 2.1 by replacing ``First-Class Mail or Standard Mail'' with
``First-Class Mail, Standard Mail or Package Services''; no other
changes to text.]
    [Amend 2.2 by replacing ``Standard Mail'' with ``Standard Mail or
Package Services''; no other changes to text.]
* * * * *

E214  Reentry

* * * * *
3.0  APPLICATION FOR REENTRY
* * * * *
    [Amend 3.9a and 3.9c by replacing ``Standard Mail'' with ``Standard
Mail or Package Services''; no other changes to text.]
    [Amend 3.10 by replacing ``Standard Mail'' with ``Standard Mail or
Package Services''; no other changes to text.]
* * * * *

E215  Copies Not Paid or Requested by Addressee

* * * * *
2.0  NONSUBSCRIBER AND NONREQUESTER COPIES
    [Amend 2.1 and 2.2 by replacing ``Regular'' with ``Outside-
County''; no other changes to text.]
    [Amend heading of 2.3 by adding ``and the Preferred Rate Discount''
to read as follows:]

2.3  Preferred Rates and the Preferred Rate Discount

    [Amend 2.3 by adding references to Preferred rate discount and
clarifying qualification categories to read as follows:]
    For Nonprofit, Classroom, In-County and Science-of-Agriculture
publications, nonsubscriber copies, up to 10% of the total number of
copies mailed to subscribers during the calendar year, may be mailed at
the applicable Preferred rates or Preferred rate discount, provided the
nonsubscriber copies would qualify as Preferred rate or Preferred rate
discount publications if mailed to subscribers and if the copies are
presorted under applicable standards. Nonsubscriber copies mailed over
the 10% limit are not eligible for Preferred rates or the Preferred
rate discount. To qualify for Outside-County rates, the nonsubscriber
copies over the 10% allowance must be part of a presorted commingled
mailing (one that includes subscriber copies). Subject to E220.4.0,
nonsubscriber copies may be mailed at In-County rates up to a 10% limit
of the total number of subscriber copies of the publication mailed at
In-County rates during the calendar year. Once the 10% calendar year
limit is exceeded on the number of nonsubscriber copies that may be
mailed at Preferred rates or the Preferred rate discount, nonsubscriber
copies may not then be mailed at In-County rates even if the 10% limit
separately applied to those rates (under E220.4.0) is not exceeded.
    [Redesignate 2.4 through 2.7 as 2.5 through 2.8, respectively; add
new section 2.4 to read as follows:]

2.4  Publications of Institutions and Societies

    For publications of institutions and societies that are not
authorized to contain general advertising under E212.2.3, all
circulated copies are considered subscriber copies and the total number
of such copies is the total paid circulation.
    [Amend redesignated 2.5 and 2.6 by replacing ``Regular'' with
``Outside-County''; no other changes to text.]
    [Amend the heading of redesignated 2.7 by adding ``noncommingled''
to read as follows:]

2.7  Excess Noncommingled Mailing

    [Amend redesignated 2.7 by replacing the second sentence and
deleting the third sentence to read as follows:]
    A mailing is not eligible for Periodicals rates if it consists
entirely of nonsubscriber or nonrequester copies over the 10% limit of
the total number of copies mailed to subscribers or requesters during
the calendar year. These copies are subject to the appropriate Express
Mail, First-Class Mail, Standard Mail, or Package Services rate.
    [Amend redesignated 2.8 by replacing ``Express Mail, First-Class
Mail, or Standard Mail'' with ``Express Mail, First-Class Mail,
Standard Mail, or Package Services''; no other changes to text.]
* * * * *
    [Add new DMM section E220.]

E220  Basic Rate Eligibility

1.0  OUTSIDE-COUNTY RATES

1.1  Basic Eligibility

    Outside-County rates apply to all copies of an authorized
Periodicals publication mailed by a publisher or news agent that are
not eligible for In-County rates, except nonrequester and nonsubscriber
copies under E215 for excess noncommingled mailings, unless the
publication is authorized under E212.2.0 and is not authorized to
contain general advertising. Nonrequester and nonsubscriber copies in
excess of the 10% allowance under

[[Page 52506]]

E215 are subject to Outside-County rates when commingled with requester
or subscriber copies as appropriate. Publications authorized for
Science-of-Agriculture rates under 3.0 are subject to separate Delivery
Unit, SCF, and Outside-County Zones 1 & 2 rates. Nonprofit and
Classroom publications are subject to the Preferred rate discount under
2.0. Outside-County rates consist of a per-piece charge, a zoned charge
for the weight of the advertising portion of the publication, and a
charge for the weight of the nonadvertising portion. Each piece rate
requires specific preparation.
2.0  OUTSIDE-COUNTY PREFERRED RATE DISCOUNT
    Periodicals publications qualifying as Nonprofit or Classroom
Periodicals under E270 receive a 5% discount off the total Outside-
County postage, excluding the postage for advertising pounds. Requester
publications are not eligible for the Preferred rate discount.
Nonsubscriber copies claiming the Preferred rate discount are subject
to the standards in E215.
3.0  OUTSIDE-COUNTY SCIENCE-OF-AGRICULTURE RATES

3.1  Authorization

    To be mailed at the Science-of-Agriculture Periodicals rates, a
publication must be granted Periodicals entry in other than the
requester category and granted a Science-of-Agriculture rate
authorization.

3.2  Eligibility

    Science-of-Agriculture rates apply to Outside-County copies of
authorized Periodicals publications mailed by publishers or news agents
when the total copies provided during any 12-month period to
subscribers residing in rural areas are at least 70% of the total
number of copies distributed by any means for any purpose.

3.3  Other Rates

    All Outside-County rates and discounts apply except for separate
rates for Delivery Unit, DSCF, and zones 1 & 2. Each piece must meet
the standards for rates or discounts claimed. Nonsubscriber copies are
subject to E215. Subject to E250, the DDU or DSCF piece rate applies to
each piece claimed in the pound rate portion at the corresponding rate.

3.4  Nonadvertising Discount

    The nonadvertising discount applies to Outside-County piece rate
postage.

3.5  Application Procedures

    The Science-of-Agriculture rate is available only after USPS
authorization. An application or written request for Science-of-
Agriculture rates must be filed at the publication's original entry
post office. Application may be made by submitting a written request
when applying for Periodicals mailing privileges (on Form 3501), by
completing the relevant part of an application for Periodicals mailing
privileges (on Form 3502), or by filing for reentry (on Form 3510)
after Periodicals mailing privileges are authorized. The applicant must
submit evidence to show eligibility under the corresponding standards
in E220.
4.0  IN-COUNTY RATES

4.1  Subscriber Copies

    In-County rates apply to subscriber copies of any issue of a
Periodicals publication (except a requester publication) when they are
entered within the county in which the post office of original entry is
located for delivery to addresses within that county, if one of the
following is met:
    a. The total paid circulation of such issue is less than 10,000
copies.
    b. The number of paid copies of such issue distributed within the
county of publication is more than 50% of the total paid circulation of
such issue.

4.2  Exceptional Conditions

    The standard in 4.1 also is applied under these exceptional
conditions:
    a. If an entry office postmaster directs the publisher to deposit
copies of the publication at a postal facility serving that office,
those copies are considered as mailed at the entry office for purposes
of In-County rates.
    b. A copy addressed to a destination within the county of
publication is eligible for In-County rates when the entry post office
serving that address is outside the county.
    c. Each Periodicals publication (except a requester publication or
commingled nonsubscriber copies above the 10% allowance) having
original entry at an incorporated city situated entirely within a
county or contiguous to one or more counties in the same state, but
politically independent of such county or counties, is considered
within a part of the county with which it is principally contiguous.
Copies mailed into that county are charged postage at the In-County
rates. Where more than one county is involved, the publisher selects
the principal county and notifies the postmaster.

4.3  Nonsubscriber Copies

    During a calendar year, the total number of nonsubscriber copies
mailed at In-County rates may not exceed 10% of the number of
subscriber copies mailed at In-County rates. The number of
nonsubscriber copies mailed at In-County rates must be included in the
determination of the overall 10% allowance under E215. Effectively, the
allowance for nonsubscriber copies mailable at the In-County rates is
the 10% allowed under this standard or the overall 10% limit under
E215, whichever occurs first.

4.4  Other Rates

    Each piece also must meet the standards for the rates and discounts
claimed. Subject to E250, the Delivery Unit piece rate applies to each
piece claimed in the pound rate portion at the Delivery Unit rate.
5.0  DISCOUNTS
    Postage for Periodicals is reduced by all applicable discounts. The
nonadvertising discount applies to the Outside-County piece rate
charges and is computed under P013. Presort and automation discounts
are available under E230 and E240, respectively. Destination entry
discounts are available under E250 for copies entered at specific USPS
facilities.
6.0  COPIES MAILED BY PUBLIC
    The applicable single-piece First-Class Mail, Priority Mail, or
Package Services rate is charged on copies of publications mailed by
the general public (i.e., other than publishers or registered news
agents) and on copies returned to publishers or news agents.
* * * * *

E250  Destination Entry

* * * * *
2.0  DDU RATE
* * * * *
    [Amend 2.4 by replacing ``Standard Mail'' with ``Standard Mail or
Package Services''; no other changes to text.]
* * * * *

E270  Preferred Periodicals

    [Remove 1.0 and 6.0 and redesignate 2.0, 3.0, 4.0, 5.0, 7.0, 8.0,
and 9.0 as 1.0 through 7.0, respectively.]
    [Amend the heading in redesignated 1.0 by replacing the word
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]

[[Page 52507]]

1.0  NONPROFIT ELIGIBILITY--BASIC INFORMATION

1.1  Authorization

    [Amend redesignated 1.1 by removing the word ``rates'' and
replacing the reference ``3.0 or 4.0'' with ``2.0 or 3.0'' to read as
follows:]
    To be mailed as a Nonprofit Periodical, a publication must be
granted Periodicals entry in other than the requester category and a
Nonprofit authorization for which eligibility was established under 2.0
or 3.0.
* * * * *
    [Amend redesignated 1.3 by removing the word ``regular'' in the
last sentence.]
    [Remove all of 1.4.]
* * * * *
    [Amend the heading in redesignated 2.0 by replacing the word
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
2.0  NONPROFIT ELIGIBILITY--QUALIFIED ORGANIZATIONS

2.1  Types of Organizations

    [Replace the reference ``3.3 through 3.10'' with ``2.3 through
2.10.'']

2.2  Primary Purpose

    [Replace the reference ``3.3 through 3.10'' with ``2.3 through
2.10.'']
* * * * *
    [Amend the heading in redesignated 3.0 by replacing the word
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
3.0  NONPROFIT ELIGIBILITY--OTHER QUALIFIED ORGANIZATIONS 3.1

Basic Eligibility

3.1  Basic Eligibility

    [Replace the reference ``4.2'' with ``3.2.'']

3.2  Eligibility Limitation

    [Replace the reference ``4.1c or 4.1d'' with ``3.1c or 3.1d.'']
    [Amend the heading in redesignated 4.0 by replacing the word
``RATES'' with the word ``ELIGIBILITY'' to read as follows:]
4.0  CLASSROOM ELIGIBILITY
* * * * *
    [Amend redesignated 4.4 by removing the word ``regular'' in the
last sentence.]
    [Remove 4.5.]
* * * * *
5.0  APPLICATION
    [In redesignated 5.0, remove 5.1 and redesignate 5.2 and 5.3 as 5.1
and 5.2.]

5.1  Procedures

    [Amend redesignated 5.1 by adding a new first sentence and revising
the second sentence (former first sentence) to read as follows:]
    The Preferred rate discount is available only after USPS
authorization. An application or written request for authorization as a
Nonprofit or Classroom publication must be filed at the publication's
original entry post office. Application may be made by submitting a
written request when applying for Periodicals mailing privileges (on
Form 3501), by completing the relevant part of an application for
Periodicals mailing privileges (on Form 3502), or by filing for reentry
(on Form 3510) after Periodicals mailing privileges are authorized.* *
*
* * * * *
6.0  MAILING WHILE APPLICATION PENDING
    [Amend redesignated 6.1 by adding reference to preferred rate and
replacing ``Regular Periodicals'' with ``Outside-County'' and
``Standard Mail'' with ``Standard Mail, or Package Services'' to read
as follows:]

6.1  Mailing Before Approval

    A publisher or news agent may not mail at a Periodicals Preferred
rate or Preferred rate discount before the RCSC manager approves the
application for such privilege. Until approval is given, postage must
be paid at the Outside-County rates (if the publication is authorized),
or at the applicable First-Class Mail, Standard Mail, or Package
Services rates (if the publication or news agent is in a pending status
for Periodicals mailing privileges).
    [Amend redesignated 6.2 by replacing ``Standard Mail'' with
``Standard Mail or Package Services''; and replacing ``regular'' with
``Outside-County''; no other changes to text.]
7.0  DECISION ON APPLICATION
* * * * *
    [Amend redesignated 7.4 (formerly 9.4) by replacing ``Standard
Mail'' with ``Standard Mail or Package Services''; replacing
``Regular'' with ``Outside-County''; and the reference ``9.5'' with
``7.5''; no other changes to text.]

7.5  No Refund

    [Amend 7.5c (formerly 9.5c) by removing the word ``Regular''; no
other changes to text.]
* * * * *

E600  Standard Mail

E610  Basic Standards

    [Matter pertaining only to Standard Mail (formerly Standard Mail
(A)) in current E611 and E612 has been consolidated and reorganized
into new E610. Unless otherwise indicated by the amend/revise
instructions below, there are no changes to the content of these
sections]
    [Remove the heading ``E611, All Standard Mail.'']
1.0  BASIC INFORMATION
    [Redesignate E611.1.1 as E610.1.1, amend the heading and contents
to show that Standard Mail no longer includes matter previously
referred to as Standard Mail (B) or fourth-class mail, and add the
weight limit from former E612.1.0 to read as follows:]

1.1  Definition and Weight

    Standard Mail consists of mailable matter that is neither mailed or
required to be mailed as First-Class Mail nor entered as Periodicals
(unless permitted or required by standard) and that weighs less than 16
ounces. Standard Mail includes matter formerly classified as Standard
Mail (A) and third-class mail.
    [Redesignate E611.1.2 as E610.1.2, no other changes to text:]
* * * * *
    [Redesignate E612.2.0 as E610.2.0; amend redesignated 2.1 and 2.2
by changing ``Standard Mail (A)'' to ``Standard Mail''; no other
changes to text.]
    [Redesignate E611.1.3 as E610.3.0, amend redesignated 3.0j by
replacing ``Standard Mail (A)'' with ``Standard Mail''; no other
changes to text.]
    [Redesignate the heading of E612.3.0 as E610.4.0 to read as
follows:]
4.0  ENCLOSURES AND ATTACHMENTS
    [Redesignate E611.1.4 as E610.4.1; no other changes in text.]
    [Redesignate E611.1.5 as E610.4.2, replace ``Standard Mail (A)''
with ``Standard Mail,'' and ``Standard Mail (B) with ``Package Services
mail''; no other changes to text.]
    [Redesignate E612.3.1 as E610.4.3 and amend by changing ``Standard
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.3.2 as E610.4.4 and amend by changing ``Standard
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.3.3 as E610.4.5 and amend to change ``Standard
Mail (A)'' to ``Standard Mail''; no other changes to text.
    [Redesignate E612.4.0 as E610.5.0 to read as follows:]

[[Page 52508]]

5.0  RATES
    [Redesignate E612.4.1 through 4.3 as E610.5.1 through 5.3, amend
for clarity, amend to incorporate new maximum limits for minimum per-
piece rates, and revise references to DMM section numbers, to read as
follows:]

5.1  General Information

    All Standard Mail rates are presorted rates (including all
nonprofit rates). These rates apply to mailings meeting the basic
standards in E610 and the corresponding standards for Presorted,
Enhanced Carrier Route, or automation, under E620, E630, or E640.
Destination entry discounted rates are available under E650, and
barcoded discounts are available for machinable parcels in E620, as
appropriate for the rate claimed. A residual shape surcharge is also
charged for pieces that are prepared as a parcel or that are not
letter-size or flat-size. Nonprofit rates may be used only by
organizations authorized by the USPS under E670. Not all processing
categories qualify for every rate. Pieces are subject to either a
single minimum per-piece rate or a combined piece/pound rate depending
on the weight of the individual pieces in the mailing under 5.2 or 5.3.

5.2  Minimum Per-Piece Rates

    The minimum per-piece rates (i.e., the minimum postage that must be
paid for each piece) apply as follows.
    a. Basic Requirement. Except for pieces eligible for and mailed at
automation letter rates, pieces mailed at Regular, Enhanced Carrier
Route, Nonprofit, and Nonprofit Enhanced Carrier Route rates are
subject to minimum per-piece rates when they weigh no more than 3.3
ounces (.2063 pound). Pieces eligible for and mailed at Regular,
Enhanced Carrier Route, Nonprofit, and Nonprofit Enhanced Carrier Route
automation letter rates are subject to minimum per-piece rates when
they weigh no more than 3.5 ounces (.2188 pound).
    b. Letters and Nonletters. In applying the minimum per-piece rates,
mail is categorized as either letters or nonletters, based on whether
the mail meets the letter-size standard in C050, without regard to
placement of the address on the mailpiece. There are two exceptions to
this rule: (1) mailers that have pieces that meet both the definition
of a letter in C050 and the definition of an automation flat in C820,
may choose to prepare and enter mail at an automation flat (nonletter)
rate; (2) address placement is used to determine the length when
applying the size standards and aspect ratio requirements to qualify
for automation letter rates under C810. For this purpose, the length is
considered to be the dimension parallel to the address.
    c. Individual Rates. There are separate minimum per-piece rates for
each subclass (Regular, Enhanced Carrier Route, Nonprofit, and
Nonprofit Enhanced Carrier Route) and within each subclass for the type
of mailing and the level of presort within each mailing under E620,
E630, and E640. Discounted per-piece rates also may be claimed for
destination entry mailings (destination bulk mail center (DBMC),
destination sectional center facility (DSCF), and destination delivery
unit (DDU)) under E650. DDU rates are available only for mail entered
at Enhanced Carrier Route or Nonprofit Enhanced Carrier Route rates.
See R600 for individual per-piece rates.

5.3  Piece/Pound Rates

    Except for pieces eligible for and mailed at automation letter
rates, pieces that exceed 3.3 ounces (.2063 pound) are subject to a
two-part piece/pound rate that includes a fixed charge per piece and a
variable pound charge based on weight. There are separate per-piece
rates for each subclass (Regular, Enhanced Carrier Route, Nonprofit,
and Nonprofit Enhanced Carrier Route) and within each subclass for the
type of mailing and the level of presort within each mailing under
E620, E630, and E640. There are separate per-pound rates for each
subclass (Regular, Enhanced Carrier Route, Nonprofit, and Nonprofit
Enhanced Carrier Route) under E620, E630, and E640. Discounted per-
pound rates also may be claimed for destination entry mailings
(destination bulk mail center (DBMC), destination sectional center
facility (DSCF), and destination delivery unit (DDU)) under E650.
    [Add new 5.4 and 5.5 to read as follows:]

5.4  Machinable Parcel Barcoded Discount

    Machinable parcels (C050) mailed at Regular or Nonprofit rates that
are prepared with barcodes under C850 and meet the eligibility
requirements in E620 may qualify for a barcoded discount. Pieces
eligible for a barcoded discount are also subject to a residual shape
surcharge under 5.5. Pieces mailed at Enhanced Carrier Route or
Nonprofit Enhanced Carrier route rates are not eligible for a barcoded
discount.

5.5  Residual Shape Surcharge

    Mail that is prepared as a parcel or is not letter-size or flat-
size as defined in C050 is subject to a residual shape surcharge. There
is one surcharge for mail entered at Regular or Nonprofit rates and a
different surcharge for mail entered at Enhanced Carrier Route or
Nonprofit Enhanced Carrier Route rates.
    [Redesignate E612.4.4 as 5.6 and amend to provide for the residual
shape surcharge to read as follows:]

5.6  Net Postage

    The net postage rate that must be paid is either the applicable
minimum per-piece rate or the piece/pound rate, as reduced by any
discounts for which the piece is eligible, and/or as increased by any
surcharge to which the piece is subject. The net postage rate is
commonly designated by the name of the primary rate category or
discount (e.g., Enhanced Carrier Route rate, automation letter rate,
automation flat rate, Presorted rate).
    [Redesignate E612.4.5 as 5.7 and amend to remove the reference to
4.6, to delete ``bulk,'' and to change ``pound rates'' to ``piece/pound
rate,'' to read as follows:]

5.7  Minimum Rate

    Postage is computed at the applicable rates on the entire mailing
to be mailed at one time. The total postage paid on any mailing may not
be lower than the amount determined by multiplying the proper minimum
per-piece rate (less applicable discounts) by the total number of
pieces. If the total postage computed at piece/pound rates, after any
adjustment for presort level, is less than the minimum per-piece
postage charge, then postage must be computed at the minimum per-piece
rate.
    [Remove E612.4.6. This section is no longer needed because all
Package Services mail may now weigh less than 16 ounces.]
    [Add new heading 6.0 to read as follows:]
6.0  FEES
    [Redesignate E612.4.7 as E610.6.1 and amend to change ``Standard
Mail (A)'' to ``Standard Mail''; no other changes in text.]
    [Redesignate E611.1.6 as 6.2; and amend by adding ``(R900)'' at the
end of the sentence; no other changes in text.]
    [Remove current E611.1.7 and 1.8.]
    [Redesignate E612.4.8 as E610.7.0 and amend to change ``Standard
Mail (A)'' to ``Standard Mail''; no other changes to text.]
    [Redesignate E612.4.9 as E610.8.0, amend to change ``Standard Mail
(A)'' to ``Standard Mail,'' amend redesignated 8.0c for clarity, amend
redesignated 8.0e to provide for use of detached address labels as
previously provided in E611.1.7, amend redesignated 8.0g to

[[Page 52509]]

incorporate former E611.1.8, redesignate 8.0j as 8.0k, and add new 8.0j
to read as follows:]
8.0  PREPARATION
    Each Standard Mail mailing is subject to these general standards:
    a. All pieces in a mailing must be of the same processing category,
except that irregular and machinable parcels may be commingled in 5-
digit sacks or on 5-digit pallets.
    b. Each mailing must contain at least 200 pieces or 50 pounds of
pieces. See E620 for volume requirement eligibility unique to Presorted
Standard rate mailings. Other volume standards also can apply, based on
the rate claimed.
    c. For letter-size and flat-size mail, all pieces in an automation
mailing must be eligible for an automation rate. Separate automation
and Presorted rate mailings of flats may be co-sacked under M910.
Separate automation, Presorted, and Enhanced Carrier Route mailings of
flats may be co-containerized under M920, M930 or M940.
    d. All pieces in a mailing must be sorted together and marked under
the standards for the rate claimed.
    e. Each piece must bear the addressee's name and delivery address,
including the correct ZIP Code or Zip+4 code, unless an alternative
address format is used subject to A040. Detached address labels may be
used subject to A060. Pieces in automation rate mailings, upgradable
nonautomation rate pieces, or pieces prepared with detached address
labels are subject to additional standards.
    f. Postage must be paid under P600 with precanceled stamps, postage
meter, or permit imprint.
    g. A postage statement, completed and signed by the mailer, using
the correct USPS form or an approved facsimile, must be submitted with
each mailing. In addition mailings must be documented under P012 and
the standards for the rate claimed.
    h. Each piece must meet the standards for any other rate or
discount claimed.
    i. Any POSTNET barcode on a mailpiece must be correct for the
delivery address and must meet the standards in C840 and A950.
    j. Any postal routing code barcode on a machinable parcel must be
correct for the delivery address and must meet the standards in C850.
    k. Mailings must be deposited at a business mail entry unit of the
post office where the postage permit or license is held and the annual
bulk fee paid, unless deposit elsewhere is permitted by standard.
    [Redesignate E612.4.10 as E610.9.0 and revise to permit use of
certain special services for matter subject to the residual shape
surcharge and to specify the conditions for such use to read as
follows:]
9.0  SPECIAL SERVICES

9.1  Eligible Matter

    Standard Mail that is subject to the residual shape surcharge
(pieces prepared as parcels or that are not letter-size or flat-size as
defined in C050) may receive the following additional special services
subject to the standards for the special service and upon payment of
the appropriate special service fees: bulk insurance (S913), return
receipt for merchandise (S917), and electronic option Delivery
Confirmation (S918). No other special services may be used with
Standard Mail. Standard Mail that is letter-size or flat-size (C050)
and is prepared as letter-size or flat-size mail is not eligible for
any special services. Machinable parcels using Bulk Parcel Return
service are not eligible for any special services. Matter mailed using
detached address labels under A060 is not eligible for any special
services.

9.2  Additional Preparation Requirements

    Mailpieces prepared using special services must bear a return
address under A010 and must bear an ancillary service endorsement
(F010) that results in return of the mailpiece to the sender if
undeliverable as addressed (Address Service Requested, Forwarding
Service Requested, or Return Service Requested).
    [Revise the heading of E620 to read as follows:]

E620  Presorted Rates

    [Revise the heading of 1.0 to read as follows:]
1.0  BASIC STANDARDS
    [Revise the heading of 1.1 to read as follows:]

1.1  General

    [Amend 1.1 by replacing in the first sentence of 1.1 and in 1.1b
``Standard Mail (A)'' with ``Standard Mail,'' and by replacing in 1.1a
``E611 and E612'' with ``E610''; no other changes to text.]
* * * * *
    [Amend 1.3 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes in text.]
* * * * *
    [Redesignate 1.5 as 2.0 and amend the heading by removing the word
``Presorted''; no other changes to text.]
    [Redesignate 1.6 as 3.0; no other changes to text.]
    [Add 4.0 to read as follows:]
4.0  BARCODED DISCOUNT
    The barcoded discount applies to machinable parcels (C050) that are
subject to the residual shape surcharge in 3.0 when the parcels bear a
correct, readable barcode under C850 for the ZIP Code shown in the
delivery address; are prepared as machinable parcels under M045 or
M610; are, if entered at the DSCF rates, not prepared in ASF, BMC, or
mixed BMC sacks or pallets; and, if claiming the DBMC rates, are not
entered at an ASF. An exception is that properly prepared machinable
pieces of DBMC rate mail entered at the Phoenix, AZ, ASF may claim the
barcoded discount because that facility uses barcode scanning
equipment. See P600 for postage payment standards.
    [Redesignate current E630.1.0 through E630.7.0 as E711 through
E715, as directed later in this document.]
    [Add new E630 to read as follows:]

E630  Enhanced Carrier Route Rates

1.0  BASIC STANDARDS
    [Redesignate E620.2.1 as E630.1.1 and amend 1.1a by changing ``E611
and E612'' to ``E610''; no other changes in text.]
    [Redesignate E610.2.2 through 2.7 as E630.1.2 through 1.7,
respectively.]
    [Add new heading 2.0 to read as follows:]
2.0  RATES
    [Redesignate E620.2.8 through E620.2.10 as E630.2.1 through
E630.2.3, respectively and amend redesignated 2.3 by changing ``2.6 and
2.7'' to ``1.6 and 1.7''; no other changes to text.]
* * * * *
    [Amend the heading of E640 by removing ``Standard Mail (A)'' to
read as follows:]

E640  Automation Rates

1.0  REGULAR AND NONPROFIT RATES

1.1  All Pieces

    [Amend the introductory sentence by replacing ``Standard Mail (A)''
with ``Standard Mail''; amend 1.1a by replacing ``E611 and E612'' with
``E610,'' no other changes to text.]
* * * * *
2.0  ENHANCED CARRIER ROUTE RATES

2.1  All Pieces

    [Amend 2.1a by replacing ``E611 and E612'' with ``E610,'' no other
changes to text.]
* * * * *

[[Page 52510]]

E650  Destination Entry

    [Remove the heading ``E651 Regular, Nonprofit, and Enhanced Carrier
Route Standard Mail.']
1.0  BASIC STANDARDS
    [Amend 1.1 by replacing ``E611 and E612'' with ``E610''; no other
changes to text.]
* * * * *
    [Amend 1.4 by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
    [Amend 1.5 by replacing ``P750'' with ``P950.'']
* * * * *
2.0  VERIFICATION
* * * * *
    [Amend 2.2 by replacing ``P750'' with ``P950.'']
* * * * *
3.0  DEPOSIT
* * * * *
    [Amend 3.3d by changing ``Standard Mail (A)'' to ``Standard Mail''
and by changing ``Standard Mail (B)'' to ``Package Services mail.'']
* * * * *
    [Amend 3.10 by changing ``Standard Mail (A)'' to ``Standard
Mail.'']
* * * * *
7.0  DDU DISCOUNT
    [Amend 7.1 by changing ``Standard Mail (A)'' to ``Standard Mail.'']
* * * * *
    [Redesignate E652 as E751. Amend E751 as specified later in this
document.]

E670  Nonprofit Standard Mail

1.0  BASIC STANDARDS
* * * * *
    [Amend 1.2 by replacing ``P750'' with ``P950.'']
    [Amend 1.3 by replacing ``E611 and E612'' with ``E610.'']
* * * * *
3.0  QUALIFIED POLITICAL COMMITTEES AND STATE OR LOCAL VOTING
REGISTRATION OFFICIALS
* * * * *
    [Amend 3.3 by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
* * * * *
5.0  ELIGIBLE AND INELIGIBLE MATTER
* * * * *
    [Amend 5.4d(2) by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
* * * * *
    [Amend 5.6a by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
* * * * *
    [Amend 5.12 by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
* * * * *
9.0  MAILING WHILE APPLICATION PENDING
* * * * *
    [Amend 9.2 by replacing ``Standard Mail (A)'' with ``Standard
Mail.'']
* * * * *
    [Add new E700 as follows:]

E700  Package Services Mail

    [Matter pertaining to only Package Services (formerly Standard Mail
(B)) in current E611 and E613 has been consolidated, reorganized, and
added as new E710. Unless otherwise indicated by the amend/revise
instructions below, there are no changes to the content of these
sections. They are reproduced here to assist in understanding the new
organization.]

E710  Basic Standards

1.0  BASIC INFORMATION
    [Redesignate E611.1.1 as E710.1.1 and amend by replacing ``Standard
Mail'' with ``Package Services mail'' and including Package Services
subclasses to read as follows:]

1.1  Definition

    Package Services mail consists of mailable matter that is neither
mailed or required to be mailed as First-Class Mail nor entered as
Periodicals (unless permitted or required by standard). Package
Services mail includes matter formerly classified as Standard Mail (B).
There are four subclasses of Package Services mail: Parcel Post, Bound
Printed Matter, Media Mail (formerly Special Standard), and Library
Mail. Information on specific eligibility requirements to qualify for
rates under each of the four subclasses is found in E711, E712, E713,
E714, and E715.
    [Redesignate E613.1.0 as E710.1.2 and amend by eliminating the
minimum weight of 1 pound and replacing ``Special Standard Mail'' with
``Media Mail'' to read as follows:]

1.2  Weight

    There is no minimum weight for Package Services. A single piece of
Parcel Post, Media Mail, and Library Mail can weigh no more than 70
pounds. A single piece of Bound Printed Matter can weigh no more than
15 pounds.
    [Redesignate existing E611.1.2 as E710.1.3 and amend by changing
the class name from ``Standard Mail'' to ``Package Services'' to read
as follows:]

1.3  Postal Inspection

    Package Services mail is not sealed against postal inspection
except that electronic documents retained by the Postal Service are
sealed against postal inspection. Regardless of physical closure, the
mailing of articles at Package Services rates constitutes consent by
the mailer to postal inspection of the contents.
    [Redesignate existing E611.1.3 as E710.1.4 and amend by changing
``Standard Mail (A) to ``Standard Mail'' in 1.4j; no other changes.]
    [Redesignate existing E611.1.4 as E710.1.5 and amend by replacing
``Standard Mail'' with ``Package Services''; no other changes.]
    [Redesignate existing E611.1.5 as E710.1.6 and remove references to
``Standard Mail (A)'' and ``Standard Mail'' to read as follows:]

1.6  Incidental First-Class Attachments and Enclosures

    Incidental First-Class matter may be enclosed in or attached to any
Package Services piece without payment of First-Class postage. An
incidental First-Class attachment or enclosure must be matter that, if
mailed separately, would require First-Class postage, is closely
associated with but secondary to the host piece, and is prepared so as
not to interfere with postal processing. An incidental First-Class
attachment or enclosure may be a bill for the product or publication, a
statement of account for past products or publications, or a personal
message or greeting included with a product, publication, or parcel.
Postage at the Package Services rate for the host piece is based on the
combined weight of the host piece and the incidental First-Class
attachment or enclosure.
    [Redesignate E613.2.0 as E710.2.0.]
2.0  ZONED RATES
    [Redesignate existing E613.2.1 as E710.2.1 and amend by replacing
``Standard Mail'' with ``Package Services''; no other changes.]
    [Redesignate existing E613.2.2 as E710.2.2, amend by changing
``Standard Mail'' to ``Package Services'' in the first sentence, and
amend 2.2c by inserting ``Parcel Post Intra-BMC'' to read as follows:]

2.2  Redirected Mailings

    A mailer who presents large mailings of zoned Package Services mail
may be permitted or directed to deposit such mailings at another postal
facility when processing or logistics make such an

[[Page 52511]]

alternative desirable for the USPS, subject to these conditions:
    a. Zoned postage need not be recomputed if both the original post
office of mailing and the alternative facility use the same zone chart
for computing zoned postage, based on the 3-digit prefix of their ZIP
Codes.
    b. Postage must be recomputed on pieces in mailings redirected to a
postal facility that uses a different zone chart for computing zoned
postage.
    c. Postage for pieces claimed at the Parcel Post Intra-BMC local
zone rates must be recomputed at the applicable zone rate for the
alternative postal facility. Postage also may be recomputed for other
pieces that are ineligible for the Parcel Post Intra-BMC local zone
rates but could become eligible at the postal facility to which the
mailing is redirected.
    [Redesignate existing E613.2.3 as E710.2.3 and amend by changing
``Standard Mail'' to ``Package Services''; no other changes.]
    [Redesignate E613.3.0 as E710.3.0 and revise to read as follows:]
3.0  ADDRESSING

3.1  Delivery and Return Address

    All Package Services mail must bear a delivery address. Except for
single-piece rate Parcel Post, the delivery address on each piece must
include the correct ZIP Code or ZIP+4 code. Alternative address formats
or detached address labels may be used, subject to A040 or A060. All
Package Services mail must bear the sender's return address.
    [Redesignate E611.1.6 as E710.3.2 and amend title by adding
``Fees'' to read as follows:]

3.2  Address Correction Fees

    The fee for manual or automated address correction service is
charged per notice issued (R700).
    [Redesignate E611.1.8 as E710.4.0 and amend for clarity to read as
follows:]
4.0  DOCUMENTATION
    Each mailing must be accompanied by a correct, completed USPS
postage statement form, or approved facsimile, signed by the mailer. A
postage statement is not required for a Package Services mailing when
the correct postage at the single-piece rate is affixed to each piece.
Additional supporting documentation may be required by the standards
for the rate claimed or postage payment method used.

E700  Package Services Mail

E710  Basic Standards

    [Add new E711 to read as follows:]

E711  Parcel Post

    [Redesignate E630.1.0 as E711.1.0 and revise to read as follows:]
1.0  DEFINITION
    Parcel Post is Package Services mail that is not mailed as Bound
Printed Matter, Media Mail, or Library Mail. Any Package Services
matter may be mailed at Parcel Post rates, subject to the basic
standards in E710.
    [Add new E711.2.0 to read as follows:]
2.0  BASIC STANDARDS
    [Redesignate E630.1.2 as E711.2.1 and change ``Standard Mail (A)''
to ``Standard Mail'' and change reference ``E611'' to ``E710'' to read
as follows:]

2.1  Enclosures

    Parcel Post may contain any printed matter mailable as Standard
Mail, in addition to the enclosures and additions listed in E710.
    [Redesignate E630.1.3 as E711.2.2 and amend to add the Intra-BMC
and Parcel Select-DBMC nonmachinable surcharges to read as follows:]

2.2  Rate Eligibility

    There are five Parcel Post rate categories: Intra-BMC, Inter-BMC,
destination bulk mail center (DBMC), destination sectional center
facility (DSCF), and destination delivery unit (DDU). Intra-BMC, Inter-
BMC, and DBMC Parcel Post rates are calculated based on the zone to
which the parcel is addressed and the weight of the parcel. DSCF and
DDU rates are calculated based on the weight of the parcel. Generally,
Intra-BMC rates apply to parcels mailed and delivered within the same
BMC service area and Inter-BMC rates apply to parcels mailed in one BMC
service area and delivered in a different BMC service area. Specific
standards for Inter-BMC and Intra-BMC rates and applicable discounts
are described below. Generally, to qualify for the Parcel Select-DBMC,
-DSCF, or -DDU rates, mailers must enter their parcels at the
destination BMC, SCF, or delivery unit postal facility that will
process or deliver the parcels. (See E750 for destination entry
requirements.) Inter-BMC, Intra-BMC, and Parcel Select-DBMC Parcel Post
is subject to a nonmachinable surcharge if the criteria specified in
C050.4.1 for machinable parcels are not met. Additional requirements
for Parcel Post rates and discounts are as follows:
    a. Intra-BMC rates apply to all Parcel Post that originates and
destinates in the service area of the same BMC or ASF. Intra-BMC rates
also apply to Parcel Post that originates and destinates in the same
state for Alaska and Hawaii and in the same territory for Puerto Rico.
See Exhibit 2.2. Intra-BMC rates for nonmachinable Parcel Post include
the nonmachinable surcharge that applies to parcels that weigh more
than 35 pounds or otherwise do not meet the criteria contained in
C050.4.1.
    b. Inter-BMC rates for machinable parcels apply to all Parcel Post
mail that weighs 35 pounds or less; is machinable; originates in the
service area of a BMC/ASF or in Alaska, Hawaii, or Puerto Rico and
destinates outside that area; and is not eligible for destination entry
rates.
    c. Inter-BMC rates for nonmachinable Parcel Post include the
nonmachinable surcharge and apply to all inter-BMC/ASF Parcel Post mail
that weighs more than 35 pounds or otherwise is nonmachinable as
defined in C050; originates in the service area of a BMC/ASF or in
Alaska, Hawaii, or Puerto Rico and destinates outside that area; and is
not eligible for destination entry rates.
    d. Parcel Post for which OBMC Presort, BMC Presort, and barcoded
discounts are claimed and Parcel Post that is mailed at a destination
entry rate (Parcel Select-DBMC, -DSCF, -DDU (E750)) must be part of a
mailing of 50 or more Parcel Post rate pieces. Eligibility for one of
those rates or discounts does not require a separate 50 qualifying
pieces per rate or per discount. Eligibility for more than one of those
rates or discounts in the same Parcel Post mailing is possible,
provided there are a total of at least 50 pieces of mail qualifying for
any or all Parcel Post rates in the mailing and all other preparation
and eligibility requirements for the rates or discounts are met.
    e. The BMC Presort per piece discount applies to pieces of inter-
BMC Parcel Post sorted to BMC destinations under L601 for machinable
pieces and sorted to BMC and ASF destinations for nonmachinable pieces
under L605. To qualify, machinable pieces must be placed in pallet
boxes on pallets, and nonmachinable pieces must be placed directly on
pallets under M041 and M045. The mail must be entered at a postal
facility that is not a BMC and must be part of a mailing containing 50
or more Parcel Post rate pieces.
    f. The origin bulk mail center (OBMC) Presort per piece discount
applies to pieces of Inter-BMC Parcel Post sorted to BMC destinations
under L601 for machinable pieces and sorted to BMC and ASF destinations
for nonmachinable pieces under L605. To qualify, machinable pieces must
be placed in pallet boxes on pallets, and nonmachinable pieces must be
placed

[[Page 52512]]

directly on pallets under M041 and M045. The mail must be entered at a
BMC listed in L601 and must be part of a mailing containing 50 or more
Parcel Post rate pieces.
    g. The barcoded discount applies to Parcel Post machinable parcels
(C050.4.1) that bear a correct, readable barcode under C850 for the ZIP
Code of the delivery address; are part of a mailing of 50 or more
Parcel Post rate pieces; are not mailed at the DSCF or DDU rates; and,
if claiming the DBMC rates, are not entered at an ASF. An exception is
that properly prepared machinable pieces of DBMC rate mail entered at
the Phoenix, AZ, ASF may claim the barcoded discount because that
facility uses barcode scanning equipment.
    h. The oversized rate applies to pieces that measure over 108
inches but that are not more than 130 inches in combined length and
girth; they are mailable at the applicable oversized Parcel Post rate.
    i. The balloon rate applies to pieces that measure over 84 inches
but that are not more than 108 inches in combined length and girth and
also weigh less than 15 pounds; they are subject to the rate equal to
that of a 15-pound parcel for the zone to which the parcel is
addressed.

Exhibit 2.2  BMC/ASF Service Areas

------------------------------------------------------------------------
         Service area                    ZIP code areas served
------------------------------------------------------------------------
BMC
    New Jersey...............  005, 068-079, 085-098, 100-119, 124-127,
                                340
    Springfield..............  010-067, 120-123, 128, 129
    Philadelphia.............  080-084, 137-139, 169-199
    Pittsburgh...............  150-168, 260-266, 439-447
    Washington...............  200-212, 214-239, 244, 254, 267, 268
    Greensboro...............  240-243, 245-249, 270-297, 376
    Cincinnati...............  250-253, 255-259, 400-418, 421, 422, 425-
                                427, 430-433, 437, 438, 448-462, 469-474
    Atlanta..................  298, 300-312, 317-319, 350-352, 354-368,
                                373, 374, 377-379, 399
    Jacksonville.............  299, 313-316, 320-339, 341, 342, 344,
                                346, 347, 349
    Memphis..................  369-372, 375, 380-397, 700, 701, 703-705,
                                707, 708, 713, 714, 716, 717, 719-729
    St. Louis................  420, 423, 424, 475-479, 614-620, 622-631,
                                633-639
    Detroit..................  434-436, 465-468, 480-497
    Chicago..................  463, 464, 530-532, 534, 535, 537-539, 600-
                                611, 613
    Minneapolis/St. Paul.....  498, 499, 540-551, 553-564, 566
    Des Moines...............  500-516, 520-528, 612, 680, 681, 683-689
    Kansas City..............  640, 641, 644-658, 660-662, 664-679, 739
    Denver...................  690-693, 800-816, 820, 822-831
    Dallas...................  706, 710-712, 718, 733, 747, 750-799, 885
    Seattle..................  835, 838, 970-978, 980-986, 988-994
    Los Angeles..............  889-891, 900-908, 910-928, 930-935
    San Francisco............  894, 895, 897, 936-966
ASF
    Buffalo..................  130-136, 140-149
    Fargo....................  565, 567, 580-588
    Sioux Falls..............  570-577
    Billings.................  590-599, 821
    Oklahoma City............  730, 731, 734-738, 740, 741, 743-746,
                                748, 749
    Salt Lake City...........  832-834, 836, 837, 840-847, 893, 898, 979
    Phoenix..................  850, 852, 853, 855-857, 859, 860, 863,
                                864
    Albuquerque..............  865, 870-875, 877-884
Other
    Puerto Rico..............  006-009
    Hawaii...................  967-969
    Alaska...................  995-999
------------------------------------------------------------------------

    [Redesignate existing E630.1.4 as E711.2.3 and amend to reflect
extension of the nonmachinable surcharge to Intra-BMC and Parcel
Select-DBMC mailings and the new minimum length and weight
machinability requirements to read as follows:]

2.3  Nonmachinable Surcharge

    The nonmachinable surcharge applies when items are mailed at the
Inter-BMC, Intra-BMC, and Parcel Select-DBMC Parcel Post rates and no
special handling fee is paid. (See C050.4.1 for machinability
criteria.) The nonmachinable surcharge does not apply to items mailed
at the oversized rates; however, it may apply to certain parcels
subject to the balloon rate. The nonmachinable surcharge applies to
such parcels as the following:
    a. Parcels larger than 34 inches long, 17 inches wide, or 17 inches
high.
    b. Parcels weighing more than 35 pounds. For books, business forms,
or other printed matter the maximum weight is 25 pounds.
    c. Parcels less than 6 inches long, 3 inches high, and \1/4\ inch
thick.
    d. Parcels weighing less than 6 ounces.
    e. Parcels containing more than 24 ounces of liquid in glass
containers or 1 gallon or more of liquid in metal or plastic
containers.
    f. Parcels that are insecurely wrapped or metal-banded.
    g. Cans, rolls, or tubes, or wooden or metal boxes.
    h. Shrubs or trees.
    i. Perishables, such as eggs.
    j. High-density parcels weighing more than 15 pounds and exerting
more than 60 pounds per-square-foot pressure on their smallest side.
    k. Film cases weighing more than 5 pounds or with strap-type
closures, except any film case the USPS authorizes to be entered as a
machinable parcel under C050.4.0 and to be identified by the words
``Machinable in United States Postal Service Equipment'' permanently
attached as a nontransferable decal in the lower right corner of the
case.
    [Redesignate E630.1.5 as E711.2.4 and change the reference in the
last sentence to R700; no other changes to text.]
* * * * *

[[Page 52513]]

    [Redesignate E630.2.0 as E712 and revise in its entirety as
follows:]

E712  Bound Printed Matter

1.0  BASIC STANDARDS

1.1  Description

    Bound Printed Matter (BPM) is Package Services mail. BPM must:
    a. Meet the basic standards for Package Services mail in E710.
    b. Weigh no more than 15 pounds.
    c. Consist of advertising, promotional, directory, or editorial
material (or any combination of such material).
    d. Be securely bound by permanent fastenings such as staples,
spiral binding, glue, or stitching. Loose-leaf binders and similar
fastenings are not considered permanent.
    e. Consist of sheets of which at least 90% are imprinted by any
process other than handwriting or typewriting with words, letters,
characters, figures, or images (or any combination of them).
    f. Not have the nature of personal correspondence.
    g. Not be stationery, such as pads of blank printed forms.

1.2  Enclosures

    In addition to the basic standards in E710, BPM may have the
following additions and enclosures:
    a. Any printed matter mailable as Standard Mail.
    b. A merchandise sample attached to a bound page or to a
permissible loose enclosure, if the sample represents only an
incidental portion of the BPM piece and if the sample is not provided
exclusively or primarily as a premium or an inducement promoting the
sale of the BPM piece. The sample may be identified as a ``free gift''
when it is clear that the sample is offered to the addressee to market
the gift product; such marketing may also promote the sale of the BPM.

1.3  Nonidentical-Weight Pieces

    Mailings may contain nonidentical-weight pieces only if the correct
postage is affixed to each piece or if the RCSC serving the post office
of mailing has authorized payment of postage by permit imprint under
P910 or P930.

1.4  POSTNET Barcodes on Flats

    Addresses on BPM flats (C050.3) may include an accurate ZIP+4 or
delivery point barcode that meets the standards in C840. There are no
automation discounts for BPM flats. Pieces within a package must be
either 100 percent barcoded or nonbarcoded.
2.0  RATES
    BPM rates are based on the weight of a single addressed piece or 1
pound, whichever is higher, and the zone (where applicable) to which
the piece is addressed. Rate categories are as follows:
    a. Single-Piece Rate. The single-piece rate applies to BPM not
mailed at the Presorted rate or Carrier Route rate.
    b. Presorted Rate. The Presorted rate applies to BPM prepared in a
mailing of at least 300 pieces, prepared and presorted as specified in
M045 and M720.
    c. Carrier Route Rate. The carrier route rate applies to BPM
prepared in a mailing of at least 300 pieces presorted to carrier
routes, prepared and presorted as specified in M045 and M723. For flat-
size pieces there must be at least 10 pieces or 10 pounds of pieces for
an individual carrier route to qualify for the rate. For irregular
parcels there must be at least 10 pieces or 20 pounds of pieces for an
individual carrier route to qualify for the rate. Machinable parcels
are eligible for the carrier route rate only when prepared in direct
carrier route sacks under M723 that each contain at least 10 pieces or
20 pounds of pieces. Machinable parcels prepared on pallets under M045
are not eligible for Carrier Route Bound Printed Matter rates.
    d. Barcoded Discount. The barcoded discount applies to machinable
BPM parcels (C050.4.1) that bear a correct, readable barcode under C850
for the ZIP Code of the delivery address. The barcoded discount is
available for a minimum of 50 pieces mailed at single piece rates. It
is also available for matter mailed at Presorted rates prepared under
the machinable parcel preparation standards in M045 and M720. The
barcoded discount is not available for pieces mailed at any carrier
route rates, at Presorted DDU, or DSCF rates, or for DBMC rate mailings
entered at an ASF other than Phoenix, AZ, ASF.
3.0  ADDITIONAL STANDARDS FOR PRESORTED RATES

3.1  ZIP Code Accuracy

    All 5-digit ZIP Codes included in addresses on pieces claimed at
Presorted rates must be verified and corrected within 12 months before
the mailing date using a USPS-approved method. The mailer must certify
that this standard has been met when the corresponding mail is
presented to the USPS. This standard applies to each address
individually, not a specific list or mailing. An address meeting this
standard may be used in mailings at any other rates to which the
standard applies during the 12-month period after its most recent
update.

3.2  Preparation

    Pieces claiming the Presorted rates must be prepared under the
applicable standards in M722.
4.0  ADDITIONAL STANDARDS FOR CARRIER ROUTE RATES

4.1 Carrier Route Information

    Except for mailings prepared with a simplified address format under
A040, carrier route codes must be applied to mailings using CASS-
certified software and the current USPS Carrier Route Information
System (CRIS) scheme, or another AIS product containing carrier route
information, subject to A930 and A950. The carrier route information
must be updated within 90 days before the mailing date.

4.2  Preparation

    Pieces claiming the carrier route rates must be prepared under the
applicable standards in M723.

4.3  Minimum Per Carrier Route

    To qualify for carrier route rates, there must be at least 10
addressed pieces or 20 pounds to a single carrier route, rural route,
highway contract route, post office box section, or general delivery
unit. When package preparation is required, each package prepared must
consist of at least two addressed pieces with the exception for the
last piece to a carrier route destination (M020).
5.0   ADDITIONAL STANDARDS FOR DESTINATION ENTRY RATES
    Eligibility standards for Presorted and Carrier Route Destination
Delivery Unit (DDU) rates, Destination Sectional Center Facility (DSCF)
rates, and Destination Bulk Mail Center (DBMC) rates are in E752. DDU
rates are not available for Presorted flats.
6.0  ADDITIONAL STANDARDS FOR BEDLOADED MAILINGS
    Bedloaded packages are permitted only when prepared for and entered
at DDU rates. If prepared, bedloaded packages of BPM are required to be
prepared under the sortation standards for flats or irregular parcels,
as applicable, and are not eligible for barcoded discounts (2.0).
* * * * *
    [Add new E713 as follows:]

E713 Media Mail

    [Redesignate E630.3.1 as E713.1.0 and change the heading, class,
subclass names, section order, and references to read as follows:]
1.0  RATE ELIGIBILITY
    Media Mail is Package Services matter that meets the standards in
E700 and

[[Page 52514]]

those below. Media Mail rates are based on the weight of the piece
without regard to zone. The rate categories are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Media Mail
not mailed at a 5-digit or BMC presort rate.
    b. BMC Presort Rate. The BMC rate (Level B) applies to presorted
Media Mail mailings of at least 500 pieces and meeting the other
requirements of 4.0 and that are prepared and presorted to destination
bulk mail centers as specified in M730 or M041 and M045.
    c. 5-Digit Presort Rate. The 5-digit rate (Level A) applies to
presorted Media Mail mailings of at least 500 pieces that meet the
other requirements of 4.0 and that are prepared and presorted to 5-
digit destination ZIP Codes as specified in M730 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to Media Mail
machinable parcels (C050.4.0) that are included in a mailing of at
least 50 pieces of Media Mail. The pieces must be entered either at
single-piece rates or BMC presort rates and bear a correct, readable
barcode for the ZIP Code shown in the delivery address as required by
C850. The discount does not apply to pieces mailed at Media Mail 5-
digit presort rates.
    [Add new E713.2.0 to read as follows:]
2.0  QUALIFICATION
    [Redesignate E630.3.2 as E713.2.1 and change the subclass name to
Media Mail; no other changes to text.]
    [Redesignate E630.3.3 as E713.2.2, change the class name to
``Standard Mail'' from ``Standard Mail (A)'' and subclass name to Media
Mail; no other changes to text.]
    [Redesignate E630.3.4 as E713.2.3 and change the subclass name and
cross references to read as follows:]

2.3  Enclosures in Books

    Enclosures in books mailed at Media Mail rates are subject to these
additional standards:
    a. Either one envelope or one addressed postcard may be bound into
the pages of a book. If also serving as an order form, the envelope or
card may be in addition to the order form permitted by 2.3b.
    b. One order form may be bound into the pages of a book. If also
serving as an envelope or postcard, the order form may be in addition
to the envelope or card permitted by 2.3a.
    c. Announcements of books may appear as book pages. These
announcements must be incidental and exclusively devoted to books,
without extraneous advertising of book-related or other materials or
services. Announcements may fully describe the conditions and methods
of ordering books and may contain ordering instructions for use with a
separate order form. Up to three of these announcements may contain as
part of their format a single order form, which may also serve as a
postcard. The order forms permitted with these announcements are in
addition to, and not in place of, order forms that may be enclosed
under 2.3a or 2.3b.
    [Redesignate E630.4.0 as E713.3.0 and change the subclass name to
read as follows:]
3.0  PRESORTED MEDIA MAIL
    [Redesignate E630.4.1 as E713.3.1 and change the subclass name and
change the cross reference to M730 from M630; no other changes to
text.]
    [Redesignate E630.4.2 as E713.3.2 and change the subclass name; no
other changes to text.]
    [Redesignate E630.4.3 as E713.3.3 and change the subclass name; no
other changes to text.]
    [Redesignate E630.4.4 as E713.3.4 and eliminate 1,000 cubic inches
as a minimum quantity to read as follows:]

3.4  Definitions

    For this standard:
    a. Full sack means a sack containing at least eight pieces or a
quantity of pieces weighing from 20 to 70 pounds.
    b. Substantially full sack means either at least four pieces or a
quantity of pieces weighing from 20 to 70 pounds.
    [Redesignate E630.4.5 as E713.3.5, change the subclass name, change
``bundles'' to ``packages, and remove ``1,000 cubic inches,'''' to read
as follows:]

3.5  5-Digit Rate

    To qualify for the Media Mail 5-digit presort rate, a piece must be
in a mailing of at least 500 Media Mail pieces receiving identical
service and prepared and sorted either under M730 to full 5-digit sacks
or under M045 to 5-digit pallets. These conditions also apply:
    a. Mailings of at least 500 nonmachinable outside parcels may
qualify for the Media Mail 5-digit presort rate if prepared to preserve
sortation by 5-digit ZIP Code as prescribed by the postmaster of the
mailing office. The postmaster may require a 24-hour notice before the
mailing is presented.
    b. Mailings prepared as palletized packages must consist of 5-digit
packages, each containing at least eight pieces or weighing 20 pounds,
whichever occurs first. No package may exceed 40 pounds. If there are
more than 20 pounds of mail to a 5-digit destination, the mailer must
prepare the minimum number of packages that weigh from 20 to 40 pounds
each.
    [Redesignate E630.4.6 as E713.3.6, change the subclass name, change
``bundles'' to ``packages,'' and remove ``1,000 cubic inches'' to read
as follows:]

3.6  BMC Rate

    To qualify for the Media Mail BMC presort rate, a piece must be in
a mailing of at least 500 pieces of Media Mail receiving identical
service and prepared and sorted either under M730 to full or
substantially full BMC sacks or to BMC pallets under M045. These
conditions also apply:
    a. Mailings of at least 500 nonmachinable outside parcels may
qualify for the Media Mail BMC presort rate if prepared to preserve
sortation by BMC as prescribed by the mailing office postmaster. The
postmaster may require a 24-hour notice before the mailing is
presented.
    b. Mailings prepared as palletized packages must consist of BMC
packages, each containing at least eight pieces or weighing 20 pounds.
No package may exceed 40 pounds. If there are more than 20 pounds of
mail to a BMC destination, the mailer must prepare the minimum number
of packages that weigh from 20 to 40 pounds each.
    [Add new E714 as follows:]

E714  Library Mail

    [Redesignate E630.5.1 as E714.1.0 and amend by changing the class
name to read as follows:]
1.0  RATE ELIGIBILITY
    Library Mail is Package Services matter meeting the standards in
E710 and those below. Library Mail rates are based on the weight of the
piece without regard to zone. The rate categories and barcoded discount
are as follows:
    a. Single-Piece Rate. The single-piece rate applies to Library Mail
not mailed at a 5-digit or BMC rate.
    b. 5-Digit Presort Rate. The 5-digit rate (Level A) applies to a
presorted mailing of at least 500 pieces of Library Mail that meet the
other requirements of 3.0 and are prepared and presorted to 5-digit
destination ZIP Codes as specified in M700 or M041 and M045.
    c. BMC Presort Rate. The BMC rate (Level B) applies to a presorted
mailing of at least 500 pieces of Library Mail that meet the other
requirements of 3.0 and are prepared and presorted to destination bulk
mail centers as specified in M700 or M041 and M045.
    d. Barcoded Discount. The barcoded discount applies to machinable
parcels (C050) that are part of a mailing of at

[[Page 52515]]

least 50 pieces of Library Mail, mailed at single-piece rates or BMC
presort rates, and bear a correct, readable barcode for the ZIP Code
shown in the delivery address in accordance with C850. The discount
does not apply to pieces mailed at the Library Mail 5-digit presort
rates.
    [Add new E714.2.0 that follows:]
2.0  QUALIFICATION
    [Redesignate E630.5.2 as E714.2.1 and amend the heading and
references to read as follows:]

2.1  Sender, Recipient, and Contents

    Each piece must show in the address or return address the name of a
school, college, university, public library, museum, or herbarium or
the name of a nonprofit religious, educational, scientific,
philanthropic (charitable), agricultural, labor, veterans, or fraternal
organization or association. For Library Mail standards, these
nonprofit organizations are defined in E670. Only the articles
described in 2.2 and 2.3 may be mailed at the Library Mail rate.
    [Redesignate E630.5.3 as E714.2.2 and revise the heading to read as
follows; no change to text:]

2.2  Qualified Mailings Between Entities

    [Redesignate E630.5.4 as E714.2.3 and revise the heading to read as
follows; no change to text.]

2.3  Qualified Mailings ``To'' or ``From''

    [Redesignate E630.5.5 as E714.2.4 and change the cross reference
from E611 to E710; no other changes to text.]
    [Redesignate E630.5.6 as E714.2.5 and change the cross reference
from E611 to E710; no other changes to text.]
    [Redesignate E630.6.0 as E714.3.0 and change the cross reference
from M630 to M740; no other changes to text.:]
* * * * *
    [Redesignate E630.7.0 as E715.]

E715 Bulk Parcel Post

    [Reserved]
* * * * *
    [Add new E750 as follows:]

E750  Destination Entry

    [Add new heading E751 to read as follows:]

E751  Parcel Post

    [Redesignate E652.1.0 as E751.1.0.]

1.1  Definitions

    [Amend 1.1 to change cross reference M630 to M710; no other changes
to text.]
* * * * *

1.3  DBMC Rates

    [Amend 1.3 to replace M630 with M710; no other changes to text.]

1.4   DSCF and DDU Rates

    [Amend 1.4a and b to replace M630 with M710; no other changes to
text.]

1.5  Postage Payment

    [Amend 1.5 to change class name from ``Standard Mail (B)'' to
``Package Services'' and change P750 to P950 as cross reference for
plant-verified drop shipments; no other changes to text.]
* * * * *
    [Redesignate E652.2.0 as E751.2.0.]
2.0  PREPARATION
* * * * *

2.2  Containers

    [Amend 2.2a and b to replace the two references to M630 with M710
and M722, respectively; amend 2.2c to replace M630 with M710; no other
changes to text.]
    [Redesignate E652.3.0 as E751.3.0; no change to text.]
    [Redesignate E652.4.0--4.13 as E751.4.0-4.13 and amend to read as
follows:]
* * * * *

4.2  Mail Separation and Presentation

    [Amend 4.2 to change the reference P750 to P950; in 4.2a and b
change references from M630 to M710; and in 4.2b change the references
from P710, P720, and P730 to P910, P920, and P930, respectively; no
other changes to text.]
* * * * *

4.4  Appointments

    [Amend 4.4a to clarify that an exception exists for shipments
containing 100 percent Periodicals and shipments of perishables, and
amend 4.4d by changing ``Standard Mail (B)'' to ``Package Services
mail'' to read as follows:]
    Appointments must be made for destination entry rate mail as
follows:
    a. Except for local mailers, shipments containing 100 percent
Periodicals mail and mailings of perishable commodities (C022) under
4.5, appointments for deposit of destination entry rate mail at BMCs,
ASFs, and SCFs must be scheduled through the appropriate appointment
control center at least a day in advance.
* * * * *
    d. When Periodicals are transported together with Standard Mail or
Package Services mail as a mixed load (E250), an appointment must be
obtained for deposit at a destination entry facility.

4.5  Exceptions to Scheduling Standard

    [Restructure and amend 4.5 to clarify that scheduling exceptions
are also made for shipments containing 100 percent of Periodicals and
shipments of perishables to read as follows:]
* * * * *
    b. Exceptions to the scheduling standard are made for shipments of
products recognized by the Postal Service as perishables under C020.
While an appointment is not required for shipments of perishables, the
destination facility must be notified at least 24 hours in advance of
deposit to facilitate timely handling of the load.
    c. No appointment is required for shipments containing 100 percent
Periodicals mail, nor is notification to the destination facility of
their arrival required. An advance notice of 24 hours is recommended to
facilitate the development of facility unloading schedules.
* * * * *
    [Redesignate E652.5.0 as E751.5.0; no changes to text.]
    [Redesignate E652.6.0 and Exhibit E652.6.0 as E751.6.0 and Exhibit
E751.6.0; no changes to text.]
    [Redesignate E652.7.0 and Exhibit E652.7.0 as E751.7.0 and Exhibit
E751.7.0 and change the class name to Package Services; no other
changes to text.]
    [Redesignate E652.8.0 and Exhibit E652.8.0 as E751.8.0 and Exhibit
E751.8.0; no other changes to text.]
    [Add new E752 to read as follows:]

E752  Bound Printed Matter

1.0  BASIC STANDARDS

1.1  General

    Destination entry discounts apply to Presorted and Carrier Route
Bound Printed Matter (BPM) that is deposited at a destination bulk mail
center (DBMC), destination sectional center facility (DSCF), or
destination delivery unit (DDU) as specified below. Eligibility for a
destination entry rate is determined by the sort level, processing
category of the mail and the type of container the mail is in (i.e.,
sacked or palletized). Each piece can claim only one destination entry
rate; an individual pallet may contain pieces claimed at different
destination entry rates. There are no destination entry rates for
single-piece BPM.

1.2  Volume

    Each destination entry rate mailing must contain at least 300
pieces of Presorted BPM or 300 pieces of Carrier Route BPM. Each group
of destination

[[Page 52516]]

entry rate pieces prepared for deposit at different destination post
offices must be presented as separate mailings meeting separate minimum
volume requirements. Separate Presorted and Carrier Route BPM mailings
may be co-palletized under M041 and M045. Pieces deposited at the same
postal facility, but claimed at different destination entry rates, may
be included in a single mailing and reported on the same postage
statement (subject to one minimum volume requirement), if the
destination entry post office is the proper facility for claiming each
of the destination entry discounts. Alternatively, when Presorted Bound
Printed Matter or Carrier Route Bound Printed Matter mailings are
submitted under PVDS procedures, mailers may use the total of all line
items for all destinations on a PVDS register or PVDS postage statement
to meet the respective 300-piece minimum volume requirements for
Presorted and Carrier Route mailings. This means a mailer may enter
fewer than 300 pieces per Presorted or Carrier Route mailing at an
individual destination, provided there is a total of at least 300
Presorted rate pieces and/or 300 Carrier Route rate pieces for all of
the entry points for that single mailing job listed on the PVDS
register or PVDS postage statement.

1.3  Postage

    Postage payment for destination entry mailings is subject to the
same standards that apply generally to BPM. Postage and fees are paid
to the post office that verifies the mailings. The destination entry
mailing fee must be paid for the current 12-month period at each postal
facility where the mailing(s) are verified.

1.4  Documentation

    Each mailing must be accompanied by the appropriate Form 3605 and
Form 8125. No additional documentation is required for destination
entry rates.

1.5  Plant Loads

    Plant load mailings, including expedited plant load shipments, are
not eligible for destination entry discounts.
2.0  DESTINATION BULK MAIL CENTER (DBMC) RATES

2.1  General Eligibility

    Pieces in a mailing meeting the standards in 1.0, 2.0 and 5.0
through 7.0 are eligible for the DBMC rate when they meet all of the
following conditions:
    a. are eligible for and prepared to qualify for Presorted, or
Carrier Route rates, subject to the corresponding standards for those
rates.
    b. are deposited at a BMC or ASF.
    c. are addressed for delivery to one of the 3-digit ZIP Codes
served by the BMC or ASF where deposited that are listed in Exhibit
E751.5.0.
    d. are placed in a sack or pallet (subject to the standards for the
rate claimed) that is labeled to the BMC or ASF where deposited, or
labeled to a postal facility within that BMC's or ASF's service area
(see Exhibit E751.5.0).

2.2  Presorted Flats

    Presorted flats in sacks or on pallets at all sort levels may claim
DBMC rates. Separate mixed ADC sacks must be prepared for flats
eligible for and claimed at the DBMC rate and for flats not claimed at
the DBMC rate. All pieces in an ADC sack or in a palletized ADC package
are eligible for the DBMC discount if the ADC facility ZIP Code (as
shown in Line 1 of the corresponding sack label or the ADC facility
that is the destination of the palletized ADC package as would be shown
on an ADC sack label for that facility using DMM L004, Column B) is
within the service area of the BMC or ASF at which the sack is
deposited. Mail must entered at the appropriate facility under 2.1.

2.3  Presorted Machinable Parcels

    Presorted machinable parcels in sacks or on pallets at all sort
levels may claim DBMC rates. Machinable parcels palletized under M045
or sacked under M722 may be sorted to destination BMCs under L601 or to
destination BMCs and ASFs under L601 and L602. Sortation of machinable
parcels to ASFs is optional but is required for the ASF mail to be
eligible for DBMC rates. Mailers may opt to sort some or all machinable
parcels for ASF service area ZIP Codes to ASFs only when the mail will
be deposited at the respective ASFs where the DBMC rate are claimed,
under applicable volume standards, using L602. Mailers may also opt to
sort machinable parcels only to destination BMCs under L601. When
machinable parcels are sorted under L601, only mail for 3-digit ZIP
Codes served by a BMC as listed in Exhibit E751.5.0 are eligible for
DBMC rates (i.e., mail for 3-digit ZIP Codes served by an ASF in
Exhibit E751.5.0 are not eligible for DBMC rates, nor are 3-digit ZIP
Codes that do not appear on Exhibit E751.5.0). Machinable parcels
prepared in mixed BMC sacks or on mixed BMC pallets that are sorted to
the origin BMC under M045 or M722 are eligible for the DBMC rates if
both of the following conditions are met: 1) the mixed BMC sack or
pallet is entered at the origin BMC facility to which it is labeled,
and 2) the pieces are for 3-digit ZIP Codes listed as eligible
destination ZIP Codes for that BMC in Exhibit E751.5.0.

2.4  Presorted Irregular Parcels

    Presorted irregular parcels in sacks or on pallets at all sort
levels may claim DBMC rates. All pieces in an ADC sack or in a
palletized ADC package are eligible for the DBMC discount if the ADC
facility ZIP Code (as shown in Line 1 of the corresponding sack label
or the ADC facility that is the destination of the palletized ADC
package as would be shown on an ADC sack label for that facility using
DMM L004, Column B) is within the service area of the BMC at which the
sack is deposited under E751.5.6. Separate mixed ADC sacks must be
prepared for pieces eligible for and claimed at the DBMC rate and for
parcels not claimed at the DBMC rate. Mail must entered at the
appropriate facility under 2.1.

2.5  Carrier Route Flats

    Carrier route flats in sacks or on pallets at all sort levels may
claim DBMC rates. Mail must entered at the appropriate facility under
2.1.

2.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels in individual carrier route sacks
may claim DBMC rates. Mail must entered at the appropriate facility
under 2.1.

2.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks at both sort levels or on
pallets at all sort levels may claim DBMC rates. Mail must entered at
the appropriate facility under 2.1.
3.0  DESTINATION SECTIONAL CENTER FACILITY (DSCF) RATES

3.1  General

    Pieces in a mailing meeting the standards in 1.0, 3.0 and 5.0
through 7.0 are eligible for the DSCF rate when they meet all of the
following conditions:
    a. are eligible for and prepared to qualify for Presorted, or
Carrier Route rates, subject to the corresponding standards for those
rates.
    b. are deposited at an SCF listed in L005, except that machinable
parcels prepared on pallets for the 5-digit ZIP Codes listed in Exhibit
E751.6.0 must be entered at the corresponding BMC facility shown in
that Exhibit (not at the SCF) unless an exception is requested and
granted. An exception to Exhibit E751.6.0 must be requested at least 15
days in advance of the mailing in writing from the Area Manager,
Operations Support, who has jurisdiction over the BMC and SCF.

[[Page 52517]]

Exceptions, if granted, will be for a limited time.
    c. are addressed for delivery to one of the 3-digit ZIP Codes
served by the SCF where deposited under L005, and
    d. are placed in a sack or pallet (subject to the standards for the
rate claimed) that is labeled to the DSCF where deposited, or labeled
to a postal facility within that SCF's service area (see L005).

3.2  Presorted Flats

    Presorted flats in sacks for the 5-digit, 3-digit, and optional SCF
sort levels or on pallets at the optional 5-digit scheme, 5-digit,
optional 3-digit, SCF and ASF sort levels may claim DSCF rates. Mail
must entered at the appropriate facility under 3.1.

3.3  Presorted Machinable Parcels

    Presorted machinable parcels in sacks or on pallets at the 5-digit
sort level may claim DSCF rates. For palletized mail, see 3.1b. Mail
must entered at the appropriate facility under 3.1. Pallets must not be
prepared if the 5-digit facility is unable to handle pallets. Refer to
the Drop Ship Product maintained by the National Customer Support
Center (NCSC) (see G043) to determine which 5-digit delivery facilities
can handle pallets.

3.4  Presorted Irregular Parcels

    Presorted irregular parcels in sacks at the 5-digit, 3-digit, and
optional SCF sort levels, or on pallets at the 5-digit, optional 3-
digit, SCF, and ASF sort levels may claim DSCF rates under 3.1.

3.5  Carrier Route Flats

    Carrier route flats in sacks at all sort levels or on pallets at
optional 5-digit scheme carrier routes, 5-digit carrier routes,
optional 3-digit, SCF, and ASF sort levels may claim DSCF rates under
3.1.

3.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels in individual carrier route sacks
may claim DSCF rates. Mail must entered at the appropriate facility
under 3.1.

3.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks at both sort levels or on
pallets at the 5-digit, optional 3-digit, SCF and ASF sort levels may
claim DSCF rates. Mail must entered at the appropriate facility under
3.1.
4.0  DESTINATION DELIVERY UNIT (DDU) RATES

4.1  General

    Pieces in a mailing meeting the standards in 1.0, and 4.0 through
7.0 are eligible for the DDU rate when they meet all of the following
conditions:
    a. are eligible for and prepared to qualify for Presorted, or
Carrier Route rates, subject to the corresponding standards for those
rates.
    b. Be addressed for delivery within the ZIP Code(s) served by the
destination delivery unit.
    c. Be deposited:
    1. For flats, at the DDU designated by the USPS district drop
shipment coordinator where the carrier cases the mail.
    2. For irregular parcels and machinable parcels, refer to the Drop
Ship Product for the 5-digit destination. When the Drop Ship Product
shows that mail for a single 5-digit ZIP Code area is delivered out of
more than one postal facility, use the facility from which the majority
of city carrier routes are delivered as the facility at which the DDU
parcels must be entered and to determine whether that facility can
handle pallets, unless the 5-digit ZIP Code is listed in Exhibit
E751.7.0 or Exhibit E751.8.0. For ZIP Codes in Exhibit E751.7.0 and
Exhibit E751.8.0 use the name of the facility associated with the 5-
digit ZIP Code on the respective exhibit as the facility at which DDU
mail must be entered for that 5-digit ZIP Code. This facility name
should be used along with the Drop Ship Product to determine if that
facility can handle pallets. If a DDU facility cannot handle pallets,
and a mailer transports mail to the DDU facility on pallets, the driver
will have to unload the pallets into a container specified by the
delivery unit.

4.2  Presorted Flats

    Presorted flats are not eligible for DDU rates.

4.3  Presorted Machinable Parcels

    Presorted machinable parcels in 5-digit sacks or on 5-digit pallets
may claim DDU rates under 4.1.

4.4  Presorted Irregular Parcels

    Presorted irregular parcels in 5-digit sacks, on 5-digit pallets,
or prepared as bedloaded 5-digit packages, may claim DDU rates when
entered at the appropriate facility under 4.1.

4.5  Carrier Route Flats

    Carrier Route flats in sacks, on optional 5-digit carrier routes
scheme and 5-digit carrier routes pallets, or prepared as bedloaded
carrier route packages, may claim DDU rates under 4.1.

4.6  Carrier Route Machinable Parcels

    Carrier route machinable parcels sorted to carrier route sacks may
claim DDU rates when entered at the appropriate facility under 4.1.

4.7  Carrier Route Irregular Parcels

    Carrier Route irregular parcels in sacks, on 5-digit pallets, or
prepared as bedloaded packages, may claim DDU rates when entered at the
appropriate facility under 4.1.
5.0  VERIFICATION

5.1  Place

    As directed by the postmaster, the mailer must present destination
entry mailings to USPS employees for verification either:
    a. At the origin mailer's plant or the origin post office serving
the mailer's plant under an authorized plant-verified drop shipment
system.
    b. At the destination post office or business mail entry unit.

5.2  Mail Separation and Presentation

    Destination entry rate mail must be verified under a PVDS system
(P750) or be presented for verification and acceptance at a BMEU
located at a destination BMC, destination SCF, or other designated
destination postal facility. Only plant-verified drop shipments may be
deposited at a destination delivery unit not co-located with a post
office or other postal facility having a business mail entry unit. When
presented to the USPS, destination entry mailings must meet the
following requirements:
    a. Each mailing must be separated from other mailings for
verification. For PVDS, destination entry rate mailings for deposit at
one destination postal facility must be separated from mailings for
deposit at other facilities to allow for reconciliation with each
accompanying Form 8125, 8125-C, or 8125-CD.
    b. Mail must be separated from freight transported on the same
vehicle.
    c. If Periodicals mail is on the same vehicle as BPM, then the
Periodicals mail should be loaded toward the tail of the vehicle so
that, for each destination entry, Periodicals mail can be offloaded
first.
    d. Form 8125, 8125-C, or 8125-CD must accompany all PVDS mailings.

5.3  Form 8125

    When mailings are verified and paid for at a postal facility
different from the one at which they are accepted as mail and deposited
into the mailstream, the mailer must ensure that they are accompanied
by a Form 8125 completed by the mailer and the verifying post office.

[[Page 52518]]

5.4  At BMC

    For a mailing to be verified at a BMC, the post office where the
mailer's account or license is held must be within the service area of
that BMC. The post office must authorize the BMC to act as its agent by
sending Form 4410 to the BMC.

5.5  PVDS Seal

    The mailer may ask that a PVDS band seal secure the vehicle
containing verified mailings before dispatch to the destination
facility.

5.6  Mailer Transport

    The mailer must transport the PVDS mailing from the place where it
was verified to the destination postal facility.

5.7  Volume Standards

    Except as permitted for a local mailer under 7.0, destination entry
mailings are subject to these volume standards:
    a. Regardless of total volume, the pieces for which a destination
rate is claimed must represent more than 50% of the mail (by weight or
pieces, whichever is greater) presented by the same mailer within any
24-hour period. For this standard, mailer is the party presenting the
material to the USPS (or for whom a transportation company has
presented the material to the USPS).
    b. The same mailer may not in a 24-hour period present for
verification and acceptance more than four destination rate mailings at
the same destination postal facility (or at another acting as its
agent). The mailer may ask for a waiver of this limit when scheduling
the deposit of the mailings. There is no maximum for plant-verified
drop shipments.
6.0  DEPOSIT

6.1  When, Where

    Each mailing claimed at a destination rate must be deposited at the
time and location specified by the USPS.

6.2  Vehicles

    Mailings must be presented in vehicles that are compatible with
dock, yard, and DDU operations, as applicable.

6.3  Appointments

    Appointments must be made for destination entry rate mail as
follows:
    a. Except for a local mailer under 7.0 and mailings of perishable
commodities, appointments for deposit of destination entry rate mail at
BMCs, ASFs, and SCFs must be scheduled through the appropriate
appointment control center at least one business day in advance. Same-
day appointments may be granted by a control center only through a
telephone request. All appointments for BMC loads must be scheduled by
the appropriate BMC control center. Appointments for SCFs and ASFs must
be scheduled through the appropriate district control center.
Appointments may be made up to 30 calendar days before a desired
appointment date. The mailer must adhere to the scheduled mail deposit
time and location. The mailer must cancel any appointment by notifying
the appropriate control center at least 24 hours in advance of a
scheduled appointment.
    b. Electronic appointments may be made through the Dropship
Appointment System (DSAS) by a mailer or agent using a USPS-issued
computer logon ID. Electronic appointments or cancellations must be
made at least 12 hours before the desired time and date. All
information required by the USPS appointment system regarding a mailing
must be provided.
    c. For deposit of DDU mailings, an appointment must be made by
contacting the DDU at least 24 hours in advance. If the appointment
must be canceled, the mailer must notify the DDU at least one business
day in advance of a scheduled appointment. Recurring appointments are
allowed if shipment frequency is once a week or more often.
    d. When Periodicals are transported together with BPM as a mixed
load (E250), an appointment must be obtained for deposit at a
destination entry facility.

6.4  Advance Scheduling

    Except under 7.0, a mailer must schedule deposit of destination
entry rate mailings at least 24 hours in advance by contacting the
proper district or BMC control center or destination delivery unit.
Appointments at delivery units must be made by calling the delivery
unit at least 24 hours in advance. Appointments for ASFs, SCFs, or for
any multistop loads must be made through the USPS district control
center or DSAS in 6.3. Appointments for BMC loads must be scheduled by
the proper BMC control center. When making an appointment, or as soon
as available, the mailer must provide the control center or DDU with
the following information:
    a. Mailer's name and address and, when applicable, the name and
telephone number of the mailer's agent or local contact.
    b. Description of what is being mailed, product name, number of
mailings, volume of mail, how prepared and whether containerized (e.g.,
pallets). For DDU entries, the mailer also must provide the 5-digit ZIP
Code(s) of the mail being deposited.
    c. Where the mailing was verified.
    d. Postage payment method.
    e. Requested date and destination facility for mailing.
    f. Vehicle identification number, size, and type.

6.5  Adherence to Schedule

    The mailer must follow the scheduled deposit time or cancel the
appointment by notifying the designated control center. Destination
facilities may refuse acceptance or deposit of unscheduled mailings or
shipments that arrive more than 2 hours after the scheduled appointment
at ASFs, BMCs, or SCFs or more than 20 minutes at delivery units.

6.6  Redirection by USPS

    A mailer may be directed to transport destination entry rate
mailings to a facility other than the designated DDU, SCF, or BMC due
to facility restrictions, building expansions, peak season mail
volumes, or emergency constraints.

6.7  Redirection at Mailer's Request

    For service reasons, a mailer may ask to transport destination SCF
rate mail to a facility other than the designated SCF. This exception
may be approved only by the district control center serving the
destination facility. To qualify for the SCF rate in this situation,
mail deposited at a facility other than the SCF must destinate for
processing within that facility and must not require backhauling to the
SCF.

6.8  Recurring Appointments

    Recurring appointments refers to a drop shipment that is delivered
to a destination office with a frequency of at least once a week on the
same time and day(s). Mailings must be of a comparable product in terms
of mail class, size, volume, and containerization (pallets, pallet
boxes, etc.). A request to establish recurring appointments must be
written on company letterhead to the postal facility manager/
postmaster. The drop shipment appointment control office/postmaster
will respond to all requests within 10 days. Recurring appointments may
be made for a period not to exceed 6 months. Thereafter, a new
application must be submitted to ensure that up-to-date mailer
information is on file. Written request for an additional 6 months may
be made within 60 days prior to the expiration of a current
arrangement. Failure to adhere to scheduled appointments or other abuse
of the procedures will result in revocation of recurring appointment

[[Page 52519]]

privileges. Requests for recurring appointments must include the
following:
    a. Name, address, and telephone number of the mailer.
    b. Transportation agent's name (contact person) and telephone
number(s).
    c. Mail volume and preparation (trays/sacks/parcels).
    d. Containerization.
    e. Size and type of trailer(s) transporting mail.
    f. Frequency/schedule.

6.9  Vehicle Unloading

    Unloading of destination entry mailings is subject to these
conditions:
    a. Properly prepared containerized loads (e.g., pallets) are
unloaded by the USPS at BMCs, ASFs, and SCFs. The USPS does not unload
or permit the mailer (or mailer's agent) to unload palletized loads
that are unstable or severely leaning or that have otherwise not
maintained their integrity in transit.
    b. At BMCs, and ASFs, the driver must unload bedloaded shipments
within 8 hours of arrival. Combination containerized and bedloaded
mailings are classified as bedloaded shipments for unload times. The
USPS may assist in unloading.
    c. At delivery units, the driver must unload all mail within 1 hour
of arrival. If pallets (including pallet boxes on pallets) are stacked,
the driver is required to unload, unstack, and unstrap them. If a
mailer transports palletized mail (including sacks on pallets) to a DDU
facility that cannot handle pallets, then the driver must unload the
pallets into a container specified by the delivery unit.
    d. When driver unloading is required, the driver or assistant must
stay with and continue to unload the vehicle once at the dock.
    e. The driver must remove the vehicle from USPS property after
unloading. The driver and assistant are not permitted in USPS
facilities except for the dock and designated driver rest area.

6.10  Demurrage

    The USPS is not responsible for demurrage or detention charges
incurred by a mailer who presents destination entry rate mailings.

6.11  Appeals

    Mailers who believe they are denied equitable treatment may appeal
to the manager, Customer Service (district), responsible for the
destination postal facility.
7.0  EXCEPTION FOR LOCAL MAILER
    The restrictions in 5.7 and 6.3 do not apply when a mailer deposits
mailings for verification and acceptance at the local post office
serving the facility where the mail was prepared, if the mailings are
not verified under a plant load authorization or plant-verified drop
shipment postage payment authorization. Under this exception, the
mailer may claim the destination entry rates for mailings or portions
of mailings deposited at the local post office that meet the standards
in 2.0, 3.0, or 4.0.
* * * * *

E753  Combining Package Services Parcels for Destination Entry

1.0  COMBINING PARCELS
    Package Services mail-Parcel Post, Media Mail, Library Mail, and
Bound Printed Matter-parcels may be combined, at the mailer's option
and when authorized by USPS, in common 5-digit sacks or pallets for
entry either at a destination sectional center facility (DSCF) or a
destination delivery unit (DDU), only. Combined parcel mailings must
meet the standards of E751, E752, and this section.

1.1  Basic Standards

    Only Package Services mail that qualifies as a machinable,
nonmachinable, or irregular parcel under C050 and meets the following
conditions may be combined under this standard:
    a. Parcels may be combined either in 5-digit sacks or on 5-digit
pallets (including pallet boxes on pallets) for deposit at a DSCF or
DDU. Combining other Package Services parcels with Bound Printed Matter
parcels claimed at a carrier route rate is not permitted. All parcels
must be prepared in sacks as required by M700 or on pallets as required
by M045 unless stated otherwise in this section. Parcels may not be
prepared on pallets (including pallet boxes on pallets) for the DSCF
rate if the 5-digit delivery facility is unable to handle pallets.
Refer to the Drop Ship Product maintained by the National Customer
Support Center (NCSC) (see G043) to determine which 5-digit delivery
facilities can handle pallets (or pallet boxes on pallets).
    b. Parcels may be combined if the following minimum quantity
requirements are met: sacks-at least 10 combined pieces; pallets-at
least 50 combined pieces and a combined weight of 250 pounds of mail,
or 36 inches of mail.
    c. Machinable and irregular parcels may be combined in the same 5-
digit container.
    d. Separate postage statements must be prepared, as appropriate,
for each subclass and postage payment method. Pieces may be claimed at
single piece rates, presorted rates, and destination entry rates, if
applicable.
    e. Parcels of a subclass for which no destination entry discount is
offered remain ineligible for a destination entry discount but may be
combined with pieces that are eligible for a DSCF or DDU entry
discount. There are no destination entry rates for single-piece Parcel
Post (less than 50 Parcel Post pieces in a mailing) and single-piece
Bound Printed Matter, nor for single-piece or presorted Library Mail
and Media Mail.
    f. Minimum mailing requirements for Parcel Select destination entry
rates (50 pieces), Presorted Bound Printed Matter (300 pieces),
Presorted Library Mail (500 pieces each level) and Presorted Media Mail
(500 pieces each level), must be met separately and are unchanged by
combining.
    g. All parcels must have correct postage affixed or must be
prepared under an approved manifesting procedure as provided in P900
and 5.0.
    h. All parcels entered at a DSCF or DDU are ineligible for the
barcoded discount.
    i. The deposit of combined mail at a destination facility must be
in accordance with applicable drop shipment standards.

1.2  Authorization

    The requirements for authorization to combine parcels are as
follows:
    a. A mailer who wants to present combined Package Services mailings
must submit a written request to the RCSC serving the post office where
the mailer is located. The request must show names of mail owner and
mailer (if different); address of the mailer's plant and mailing office
(if different); the parcel subclasses in a combined mailing; evidence
of authorization to mail under P710, expected date of first mailing;
and sample of required computer-generated listings. The expected
frequency of mailings under this section must be listed as part of the
request.
    b. An authorization is valid only for a specified combination of
mail subclasses and rate categories and for a specified period of time.
It need not be limited to a single mailing or a specific number of
mailings.
    c. An authorization expires at the same time as the applicable
manifest postage payment system authorization and may not be written
for a period of more than 2 years. A mailer may terminate an
authorization at any time by written notice to the postmaster of the
office serving the mailer's location. The USPS may terminate an

[[Page 52520]]

authorization by written notice if it finds that the mailer does not
meet the applicable standards.
2.0  COMBINED PARCELS PREPARED IN SACKS

2.1  Rate Eligibility

    In addition to the applicable standards in E750 for destination
entry Package Services mail, the following standards apply for combined
Package Services mail prepared in sacks for destination entry rates
where applicable:
    (a) Parcel Post and Parcel Select rates are applied as follows:
    (1) Parcel Select parcels that are contained in 5-digit sacks, each
holding at least 10 pieces of any combination of Bound Printed Matter,
Parcel Select, Parcel Post (pieces ineligible for destination entry
rates) Media Mail, and/or Library Mail parcels, qualify for Parcel
Select DSCF rates, provided all other requirements for the DSCF rate in
E751 are met.
    (2) Parcel Select pieces that are contained in 5-digit sacks, each
holding at least 10 pieces of any combination of Bound Printed Matter,
Parcel Select, Parcel Post (pieces ineligible for destination entry
rates), Media Mail, and/or Library Mail parcels, qualify for Parcel
Select DDU rates, provided all other requirements for the DDU rate in
E751 are met.
    (3) Parcel Post parcels for which the 50-piece minimum mailing
requirement for Parcel Select rates is not met that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of
Bound Printed Matter, Parcel Select, Media Mail, and/or Library Mail
parcels, qualify for Parcel Post rates.
    b. Bound Printed Matter rates are applied as follows:
    (1) Presorted Bound Printed Matter parcels that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for
destination entry rates), Media Mail, and/or Library Mail parcels,
qualify for Bound Printed Matter DSCF rates, provided all other
requirements for the DSCF rate in E752 are met.
    (2) Presorted Bound Printed Matter parcels that are contained in 5-
digit sacks, each holding at least 10 pieces of any combination of
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for
destination entry rates), Media Mail, and/or Library Mail parcels,
qualify for Bound Printed Matter DDU rates, provided all other
requirements for the DDU rate in E752 are met.
    (3) Bound Printed Matter parcels for which the 300-piece minimum
mailing requirement for Presorted rates is not met and that are
contained in 5-digit sacks, each holding at least 10 pieces of any
combination of Bound Printed Matter, Parcel Select, Parcel Post (pieces
ineligible for destination entry rates), Media Mail, and/or Library
Mail parcels, qualify for Bound Printed Matter single-piece rates.
    c. Library Mail rates are applied as follows:
    (1) Presorted Library Mail parcels that are contained in 5-digit
sacks, each holding at least 10 pieces of any combination Bound Printed
Matter, Parcel Select, Parcel Post (pieces ineligible for destination
entry rates), Media Mail, and/or Library Mail parcels, qualify for 5-
digit Library Mail rates.
    (2) Library Mail parcels for which the 500-piece minimum mailing
requirement for 5-digit Presorted rates is not met that are contained
in 5-digit sacks, each holding at least 10 pieces of any combination of
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for
destination entry rates), Media Mail, and/or Library Mail parcels,
qualify for single-piece Library Mail rates.
    d. Media Mail rates are applied as follows:
    (1) Presorted Media Mail parcels that are contained in 5-digit
sacks, each holding at least 10 pieces of any combination Bound Printed
Matter, Parcel Select, Parcel Post (pieces ineligible for destination
entry rates), Media Mail, and/or Library Mail parcels, qualify for 5-
digit Media Mail rates.
    (2) Media Mail parcels for which the 500-piece minimum mailing
requirement for 5-digit Presorted rates is not met, that are contained
in 5-digit sacks, each holding at least 10 pieces of any combination of
Bound Printed Matter, Parcel Select, Parcel Post (pieces ineligible for
destination entry rates), Media Mail, and/or Library Mail parcels,
qualify for single-piece Media Mail rates.

2.2  Sack Preparation

    Only 5-digit sacks may be prepared. Each sack must contain a
minimum of 10 pieces of any combination of Package Services parcels.
Sack labels must be prepared as follows: 5-digit: For line 1, use 5-
digit ZIP Code on mail. For line 2, use ``PSVC PARCELS 5D.''
3.0  COMBINED PARCELS PREPARED ON PALLETS

3.1  Rate Eligibility

    In addition to the applicable standards in E750 for destination
entry Package Services mail, the following standards apply for combined
Package Services mail prepared on pallets for destination entry rates
where applicable:
    a. Parcel Post: Under these standards, Parcel Post pieces may be
combined with other Package Services mail to meet the pallet minimums.
Parcel Select-DSCF rates may be claimed for pieces that are part of a
mailing of at least 50 pieces of Parcel Post, prepared on 5-digit
pallets of at least 50 pieces and 250 pounds of Package Services mail
or 36 inches of mail, and deposited at a designated sectional center
facility under E750. Parcel Select-DDU rates may be claimed for any
pieces that are part of a mailing of at least 50 pieces of Parcel Post,
prepared on 5-digit pallets of combined Package Services mail, and
deposited at a designated DDU under E750.
    b. Bound Printed Matter: The DSCF and DDU rates apply to Presorted
(excluding carrier route) Bound Printed Matter mailings that meet the
standards for volume and presort under E752, are prepared on 5-digit
pallets of at least 50 pieces and 250 pounds or 36 inches of mail, and
are deposited at a designated sectional center facility or designated
DDU. Under these standards, the Bound Printed Matter pieces may be
combined with other Package Services mail to meet the pallet minimums.
Single piece Bound Printed Matter rate mail may be combined with other
Package Services mail when placed on a qualifying 5-digit pallet and
deposited at a designated sectional center facility or designated DDU.
    c. Library Mail: 5-Digit presort and BMC presort rates apply to
mailings meeting the standards for volume and presort under E714 and
may be combined with other Package Services mail when prepared and
presorted on 5-digit pallets of at least 50 pieces and 250 pounds or 36
inches of mail and deposited at a designated sectional center facility
or designated DDU. Single piece rate Library Mail may be combined with
other Package Services mail when prepared on qualifying 5-digit pallets
of at least 50 pieces and 250 pounds or 36 inches of mail that are
deposited at a designated sectional center facility or DDU. Single
piece Library Mail may be combined with other Package Services mail
when placed on a qualifying 5-digit pallet and deposited at a
designated sectional

[[Page 52521]]

center facility or designated DDU. There is no Library Mail BMC rate
under E753.
    d. Media Mail: The 5-digit presort rate applies to mailings meeting
the standards for volume and presort under E713 when combined with
other Package Services mail, prepared and presorted on 5-digit pallets
of at least 50 pieces or 250 pounds or 36 inches of mail, and deposited
at a designated sectional center facility or designated DDU. Single
piece rate Media Mail may be combined with other Package Services mail
when placed on qualifying 5-digit pallets that are deposited at a
designated DSCF or designated DDU. There is no Media Mail BMC rate
under E753.

3.2  Packages

    Packages prepared on pallets must meet the applicable standards in
M010, M020, M030, and M045.

3.3  Pallet Preparation

    5-digit pallets may be prepared whenever there are at least 50
parcels or 250 pounds or 36 inches of combined Parcel Services mail.

3.4  Pallet Presort and Labeling

    Only 5-digit pallets are permitted under E753. For line 1, City,
State, and 5-digit ZIP Code on mail. For line 2, ``PSVC PARCELS 5D.''
4.0  DOCUMENTATION
    Separate postage statements must be prepared for each Package
Services mailing. All postage statements must be provided at the time
of mailing and must be accompanied by a computer-generated manifest
prepared in accordance with P900 and this section. The manifest must be
a computer-generated listing in ZIP Code sequence and numbered to
correspond to the sacks or pallets that describes the content of each
sack or pallet. The mailer must keep this information for 90 days after
the mailing is dispatched. If a manifest as described in M045.12.3 is
already used to qualify for Parcel Select-DSCF rates, the information
required by this section for combined pieces must be added. A pallet
identification number must be printed below Line 3 on the pallet label.
The manifest must show the following information for each sack or
pallet: the number of pieces, combined weight, and total postage amount
for each rate category (e.g., Parcel Select-DDU, Bound Printed Matter
DDU) and a total sack or pallet combined summary of pieces, weight, and
postage. It must also indicate by subclass and rate category,
cumulative totals of the number of pieces, weight, and postage of all
preceding sacks or pallets added to the totals of the current sack or
pallet and a summary showing the total number of pieces and the total
postage amount.

F  FORWARDING AND RELATED SERVICES

F000  Basic Services

F010  Basic Information

* * * * *
3.0  DIRECTORY SERVICE
    [Amend 3.0d by replacing ``Standard Mail (B)'' with ``Package
Services''; no other changes to text.]
4.0  BASIC TREATMENT
* * * * *

4.5  Special Services

    [Amend 4.5 by revising 4.5b to add instructions for treatment of
insured Standard Mail; revise 4.5c by deleting the last sentence to
read as follows:]
    Mail with special services is treated according to the charts for
each class of mail in 5.0, except that:
* * * * *
    b. All insured First-Class Mail is forwarded and returned free of
charge. All insured Standard Mail and Package Services mail is
forwarded and returned.
    c. Parcels undeliverable as originally addressed and forwarded to
the addressee at a new address receive special handling service without
an additional special handling fee.
* * * * *
    [Add new 4.6 to read as follows:]

4.6  Metered Pieces

    Mail paid by postage meter that does not have a delivery address
and a return address is returned to the post office of mailing. The
reason for nondelivery is attached but the address correction fee is
not charged. The piece is returned to the meter licensee upon payment
of the applicable return postage.
5.0  CLASS TREATMENT FOR ANCILLARY SERVICES
    [Amend 5.1 by changing ``E620'' to ``E620 and E630.'']
* * * * *
    [Amend heading of 5.3 by removing ``(A)'' to read as follows:]

5.3  Standard Mail

    [Amend 5.3 by removing ``(A)'' from ``Standard Mail (A)''; amend
5.3a by replacing ``Standard Mail (B)'' with ``Package Services'' and
``Special Standard Mail'' with ``Media Mail.'' Redesignate current
items g and h, as h and i, respectively; amend redesignated i by
removing ``(A)'' from ``Standard Mail (A)'' add new g to read as
follows:]
    Undeliverable Standard Mail is treated as described in the chart
below and under these conditions:
* * * * *
    g. Standard Mail with insurance, return receipt for merchandise, or
Delivery Confirmation must be endorsed ``Address Service Requested,''
``Forwarding Service Requested,'' or ``Return Service Requested.''
* * * * *
    [Amend the chart in 5.3 by adding the following under ``Change
Service Requested'' to read as follows:]

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces
------------------------------------------------------------------------
Change Service Requested \1\.  * * * * *
                               This endorsement is not available for
                                mail with special services (e.g.,
                                insured or Delivery Confirmation).
------------------------------------------------------------------------

    [Revise heading of 5.4 to read as follows:]

5.4  Package Services

    [Amend 5.4 by replacing ``Standard Mail (B)'' with ``Package
Services mail.'' Remove item 5.4c. Add new item 5.4c to read as
follows:]
    Undeliverable Package Services mail is treated as described in the
chart below and under these conditions:
* * * * *
    c. Bound Printed Matter with no ancillary service endorsement and
no special service is disposed of by USPS. It is not forwarded or
returned to sender. Bound Printed Matter with no ancillary service
endorsement with a special service is treated as if it is endorsed
``Forwarding Service Requested.''
* * * * *
    [Amend chart in 5.4 by adding an exception for Bound Printed Matter
under ``No endorsement'' to read as follows:]

[[Page 52522]]

------------------------------------------------------------------------
      Mailer endorsement               USPS action on UAA pieces
------------------------------------------------------------------------
No endorsement...............  Same as USPS action for ``Forwarding
                                Service Requested.'' Exception: Bound
                                Printed Matter with no special service
                                added is disposed of by USPS.
------------------------------------------------------------------------

* * * * *
6.0 ENCLOSURES AND ATTACHMENTS
* * * * *
    [Amend heading and text of 6.2 by removing the ``(A)'' in Standard
Mail; no other changes to text.]
    [Revise title of 6.3 to read as follows:]

6.3 Package Services

    [Amend 6.3 by replacing references to ``Standard Mail (B)'' with
``Package Services''; no other changes to text.]
7.0 MIXED CLASSES
    [Amend introductory paragraph of 7.1, 7.1a, and 7.2 by replacing
``Standard Mail'' with ``Standard Mail or Package Services mail''; no
other changes to text.]
* * * * *

7.4 Parcel

    [Amend 7.4 to specify that combination parcels are returned at the
Parcel Post Inter-BMC rate and by replacing ``Special Standard Mail''
with ``Media Mail'' to read as follows:]
    A combination parcel containing Media Mail and Bound Printed Matter
is charged postage at the Parcel Post Inter-BMC zoned rate when
forwarded or returned.
8.0 DEAD MAIL
    [Amend 8.1b by replacing ``Standard Mail (A)'' with ``Standard
Mail.'' Amend 8.1e by replacing ``Standard Mail (A)'' with ``Standard
Mail `` and ``Standard Mail'' with ``Standard Mail and Package
Services''; no other changes to text.]
* * * * *

F020  Forwarding

* * * * *
2.0 FORWARDABLE MAIL
* * * * *
    [Amend 2.3, 2.4, and 2.6, by replacing ``Standard Mail (B)'' with
``Package Services mail''; no other changes to text.]
* * * * *
3.0 POSTAGE FOR FORWARDING
* * * * *
    [Amend the title and contents of 3.5 by replacing ``Standard Mail
(A)'' with ``Standard Mail''; no other changes to text.]
    [Revise title of 3.6 to read as follows:]

3.6 Package Services

    [Amend 3.6 by replacing ``Standard Mail (B)'' with ``Package
Services''; no other changes to text.]
* * * * *

F030  Address Correction, Address Change, FASTforward, and Return
Services

1.0  ADDRESS CORRECTION SERVICE
* * * * *
    [Amend 1.4 by replacing ``Standard Mail'' with ``Standard Mail and
Package Services''; no other changes to text.]
* * * * *
2.0  ADDRESS CHANGE SERVICE (ACS)
    [Amend 2.1 by replacing ``Standard Mail'' with ``Standard Mail and
Package Services''; no other changes to text.]
* * * * *

2.5  Shipper Paid Forwarding

    [Amend 2.5 by adding a reference to the accounting fee for a
postage due account:]
    Shipper Paid Forwarding is an ACS fulfillment vehicle. It allows
mailers of Standard Mail machinable parcels and most Package Services
mail to pay forwarding charges via approved ACS participant code(s).
For information about Shipper Paid Forwarding, contact the National
Customer Support Center (see G043). Mailers have the option of paying
forwarding charges through a postage due advance deposit account. If
so, then mailers must pay an annual accounting fee.
* * * * *
4.0  SENDER INSTRUCTION
* * * * *

4.2  Special Services

    A change-of-address order covers certified, collect on delivery
(COD), insured, registered, and return receipt for merchandise mail
unless the sender gives other instructions or the addressee moves
outside the United States. This mail is treated as follows:
    [Amend 4.2d to read as follows:]
* * * * *
    d. Insured Standard Mail is forwarded and returned.
* * * * *
    [Amend 4.2e by replacing ``Standard Mail (B)'' with ``Package
Services mail''; no other changes to text.]
* * * * *

G  GENERAL INFORMATION

G000  The USPS and Mailing Standards

* * * * *

G090  Experimental Classifications and Rates

G094  Ride-Along Rate for Periodicals

1.0  BASIC ELIGIBILITY
    [Amend 1.1, 1.2, and 1.3 by changing ``Standard Mail (A)'' to
``Standard Mail,'' no other changes to text.]
* * * * *

L  LABELING LISTS

L000  General Use

    [Amend the heading and introductory paragraph of L001 to provide
for class of mail name changes and to allow use of L001 with Bound
Printed Matter flats to read as follows:]

L001  5-Digit Scheme--Periodicals Flats and Irregular Parcels, Standard
Mail Flats and Bound Printed Matter Flats

    When 5-digit scheme sort is used for Periodicals flats and
irregular parcels, Standard Mail flats, and Bound Printed Matter flats,
mail for the 5-digit ZIP Codes shown in Column A must be combined on
pallets (packages on pallets only on merged 5-digit scheme, 5-digit
scheme carrier routes, or 5-digit scheme pallets, as applicable) or in
sacks (merged 5-digit scheme or 5-digit scheme carrier routes sacks, as
applicable) labeled to the corresponding destination shown in Column B.
* * * * *

L002  3-Digit ZIP Code Prefix Matrix

    This matrix provides information about 3-digit ZIP Code prefixes as
follows:
    [Amend the last sentence of L002d to read as follows:]
    d. * * * Destination SCF Standard Mail rates, destination SCF
Package Services rates, or SCF zone and per-piece Periodicals rates are
available only to those ZIP Code areas for which an SCF is shown.
* * * * *

L004  3-Digit Code Prefix Groups--ADC Sortation

    [Revise the next-to-last sentence of the L004 introduction to read
as follows:]
    * * * To order labels from the USPS Label Printing Center, use Form
1578-

[[Page 52523]]

B and indicate set number 008 (First-Class Mail), set number 009
(Periodicals), or set number 010 (Standard Mail and Bound Printed
Matter). * * *
    [In L004, replace''[STD only]'' with ``[STD and BPM only],''
replace ``[PER and STD only]'' with ``[PER, STD, and BPM only],'' and
replace ``[FCM and STD only]'' with ``[FCM, STD, and BPM only].'']
* * * * *
    [Amend the heading of L600 to include Package Services to read as
follows:]

L600  Standard Mail and Package Services

L601  BMCs

    [Revise introductory paragraph to read as follows:]
    Use this list for:
    (1) Standard Mail machinable parcels except ASF mail prepared and
claimed at DBMC rates.
    (2) Standard Mail packages, letter trays, or sacks on pallets.
    (3) Bound Printed Matter machinable parcels.
    (4) Bound Printed Matter packages or sacks on pallets.
    (5) Parcel Post except for ASF mail prepared and claimed at DBMC
rates and non-machinable BMC Presort or OBMC Presort rate mail.
    (6) Presorted Media Mail and Presorted Library Mail to BMC
destinations. For labeling mixed BMC sacks and pallets, mailers must
add ``MXD'' before the Column B information of the BMC serving the 3-
digit ZIP Code prefix of the post office at which the mail is entered.
* * * * *
    [Revise the heading of L602 to read as follows:]

L602  ASFs

    [Revise the introductory paragraph to read as follows:]
    Use this list for:
    (1) Standard Mail machinable parcels if ASF mail is entered at the
ASF and claimed at DBMC rates.
    (2) Standard Mail packages, letter trays, or sacks on pallets.
    (3) Bound Printed Matter machinable parcels if ASF mail is entered
at the ASF and claimed at DBMC rates.
    (4) Bound Printed Matter packages or sacks on pallets.
    (5) Parcel Post machinable parcels if ASF mail is entered at the
ASF and claimed at DBMC rates.
* * * * *
    [Amend the title of L603 by adding ``Standard Mail'' to read as
follows:]

L603  ADCs--Irregular Standard Mail Parcels

* * * * *
    [Amend to title of L604 to indicate that the list is used only for
Standard Mail irregular parcels to read as follows:]

L604  Originating ADCs--Standard Mail Irregular Parcels

* * * * *

L800  Automation Rate Mailings

* * * * *
    [Amend the heading of L802 by changing ``Standard Mail (A)'' to
``Standard Mail'' to read as follows:]

L802  BMC/ASF Entry--Periodicals and Standard Mail

* * * * *
    [Amend the heading of L803 by changing ``Standard Mail (A)'' to
``Standard Mail'' to read as follows:]

L803  Non-BMC/ASF Entry--Periodicals and Standard Mail

* * * * *

M  MAIL PREPARATION AND SORTATION

M000  General Preparation Standards

M010  Mailpieces

M011  Basic Standards

1.0  TERMS AND CONDITIONS

1.1  Presort Process

    [Amend the third sentence of 1.1 by replacing ``Standard Mail (A)''
with ``Standard Mail''; no other changes to text.]
* * * * *

1.3  Preparation Instructions

    For purposes of preparing mail:
* * * * *
    [M013.13 was amended in the amended final rule published in 65 FR
50054 (August 16, 2000). The section numbers in this proposed rule
reflect those amendments.]
    [Redesignate 1.3f through 1.3z as 1.3h through 1.3ab respectively,
add new 1.3f and 1.3g to read as follows:]
    For purposes of preparing mail:
* * * * *
    f. A less-than-full flat tray is one that contains First-Class Mail
for the same destination regardless of quantity or whether a full tray
was previously prepared for that destination. Less-than-full flat trays
may be prepared only if permitted by the standards for the rate
claimed.
    g. An overflow flat tray is a less-than-full First-Class Mail tray
that contains all pieces remaining after preparation of one or more
full trays for the same destination. Overflow flat trays may be
prepared only if permitted by the standards for the rate claimed.
* * * * *
    [Amend redesignated 1.3j to provide for 5-digit/scheme carrier
routes sortation for Carrier Route Bound Printed Matter, and to change
``Standard Mail (A)'' to ``Standard Mail'' to read as follows:]
    j. A 5-digit/scheme carrier routes sort for carrier route rate
Periodicals flats and irregular parcels, Enhanced Carrier Route rate
Standard Mail flats, and Carrier Route Bound Printed Matter flats,
prepared in sacks or as packages on pallets yields a 5-digit scheme
carrier routes sack or pallet for those 5-digit ZIP Codes listed in
L001 and 5-digit carrier routes sacks or pallets for other areas. The
5-digit ZIP Codes in each scheme are treated as a single presort
destination subject to a single minimum sack or pallet volume, with no
further separation by 5-digit ZIP Code required. Sacks or pallets
prepared for a 5-digit scheme carrier routes destination that contain
carrier route packages for only one of the schemed 5-digit areas are
still considered 5-digit scheme carrier routes sorted and are labeled
accordingly. The 5-digit/scheme sort is required for carrier route
packages of flat-size and irregular parcel Periodicals, is optional for
flat-size Enhanced Carrier Route rate Standard Mail, and is optional
for Carrier Route Bound Printed Matter flats prepared in sacks or as
packages on pallets. If preparation of 5-digit scheme carrier routes
sacks or pallets is performed, it must be done for all 5-digit scheme
destinations. A 5-digit/scheme carrier routes sort may be performed
only for carrier route packages prepared in sacks or as packages on
pallets.
    [Amend redesignated 1.3k to provide for 5-digit/scheme sortation
for Bound Printed Matter flats, and to change ``Standard Mail (A)'' to
``Standard Mail'' to read as follows:]
    k. A 5-digit/scheme sort for Periodicals flats and irregular
parcels, Standard Mail flats, and Bound Printed Matter flats prepared
as packages on pallets yields 5-digit scheme pallets containing
automation rate (not applicable to Bound Printed Matter) and Presorted
rate 5-digit packages for those 5-digit ZIP Codes listed in L001 and
yields 5-digit pallets containing automation rate (not applicable to
Bound Printed Matter) and Presorted rate 5-digit packages for other
areas. The 5-digit ZIP Codes in each scheme are treated as a single
presort destination subject to a single minimum pallet

[[Page 52524]]

volume, with no further separation by 5-digit ZIP Code required.
Pallets prepared for a 5-digit scheme destination that contain 5-digit
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 required for flat-size and irregular parcel-size Periodicals,
and is optional for flat-size Standard Mail and flat-size Bound Printed
Matter that is prepared as packages on pallets and may not be used for
other mail prepared on pallets, except for 5-digit packages of Standard
Mail 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.
* * * * *
    [Amend the last sentence of 1.3p for clarity to read as follows:]
    * * * The 3-digit/scheme sort is required for automation rate
letter-size First-Class Mail, Periodicals, and Standard Mail and is not
permitted to be used for mail entered at another rate.
* * * * *
    [Amend 1.3z by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
    [Amend the first and last sentences of 1.3aa by replacing ``Parcel
Post DSCF'' with ``Parcel Select (Parcel Post) DSCF)''; and by changing
``M630'' to ``M710''; no other changes to text.]
    [Amend the first and second sentences of 1.3ab by replacing
``Parcel Post DSCF'' with ``Parcel Select (Parcel Post) DSCF''; no
other changes to text.]

1.4  Mailing

* * * * *
    [Amend 1.4e by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
    [Amend 1.4f by replacing ``Standard Mail (B)'' with ``Package
Services'' and ``Special Standard'' with ``Media Mail''; no other
changes in text.]
* * * * *

M012  Markings and Endorsements

1.0  MARKINGS--BASIC STANDARDS

1.1  Class and Rate

    [Amend 1.1b by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
    [Amend 1.1c by replacing ``Standard Mail (B)'' with ``Package
Services''; no other changes to text.]
* * * * *
    [Revise the heading of 2.0 by replacing ``Standard Mail (A)'' with
``Standard Mail''; no other change.]
2.0  MARKINGS--FIRST-CLASS MAIL AND STANDARD MAIL

2.1  Placement

* * * * *
    [Amend 2.1b and c by replacing ``Standard Mail (A)'' with
``Standard Mail''; no other changes to text.]
* * * * *

2.2  Exceptions to Markings

    [Amend 2.2a and 2.2b by replacing ``Standard Mail (A)'' with
``Standard Mail''; no other changes to text.]
* * * * *
    [Amend the heading of 3.0 by replacing ``Standard Mail (B)'' with
``Package Services Mail'' to read as follows:]
3.0  MARKINGS--PACKAGE SERVICES MAIL

3.1  Basic Markings

    [Amend 3.1 by changing the subclass name from ``Special Standard
Mail'' to ``Media Mail'' and eliminating the ``Library Rate'' marking
to read as follows:]
    The basic required Package Services subclass marking--``Parcel
Post'' or ``PP,'' ``Bound Printed Matter'' or ``BPM,'' ``Media Mail,''
or ``Library Mail''--must be printed on each piece claimed at the
respective rate. (The marking ``Library Rate'' may continue to be used
on Library Mail until January 1, 2002. The marking ``Special Standard
Mail'' (or ``SPEC STD'') may continue to be used on Media Mail until
January 1, 2002.) For Parcel Post destination entry rate mail, the
marking ``Parcel Select'' may be used as the basic required marking
instead of ``Parcel Post.'' The basic required marking must be placed
in the postage area (i.e., printed or produced as part of, or directly
below or to the left of, the permit imprint indicia or meter stamp or
impression).
    [Amend the heading of 3.2 for clarity to read as follows:]

3.2  Additional Parcel Select (Parcel Post) Markings

    [Amend the first sentence of 3.2 to read as follows:]
    Each piece in a Parcel Select (Parcel Post) mailing entered at a
DBMC, DSCF, or DDU destination entry rate must bear a marking to
indicate that it was mailed at a destination entry rate. * * *
    [Amend the heading of 3.3 by changing ``Other'' to ``Additional''
and revise to read as follows:]

3.3  Additional Bound Printed Matter Markings

    Each piece of Bound Printed Matter mailed at a Presorted rate must
bear the marking ``Presorted'' (or ``PRSRT'') in addition to the basic
marking in 3.1. Until January 1, 2002, mailers may use the marking
``Presorted Standard'' (or ``PRSRT STD''). Each piece of Bound Printed
Matter mailed at a Carrier Route rate must bear the marking ``Carrier
Route Presort'' (or ``CAR-RT SORT'') in addition to the basic marking
in 3.1. These additional markings may be placed in the postage area as
specified in 3.1. Alternatively, these markings may be placed in the
address area on the line directly above or two lines above the address
if the marking appears alone, or if no other information appears on the
line with the marking except postal optional endorsement line
information under M013 or postal carrier route package information
under M014.
    [Amend the heading of 3.4 to reflect the new subclass name to read
as follows:]

3.4  Additional Media Mail Markings

    [Amend 3.4 to reflect the new subclass name to read as follows:]
    The required marking ``Presorted'' or ``PRSRT'' for Media Mail may
be placed in the location specified in 3.1. Alternatively, it may be
placed in the address area on the line directly above or two lines
above the address provided that only the Media Mail marking appears on
that line.
    [Amend the heading of 3.5 by changing ``Other'' to ``Additional''
to read as follows:]

3.5  Additional Library Mail Markings

* * * * *
4.0  ENDORSEMENTS--DELIVERY AND ANCILLARY SERVICES
* * * * *

4.5  OCR Read Area

    [Amend 4.5 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]

M013  Optional Endorsement Lines

1.0  USE

1.1  Basic Standards

    [Amend the chart in 1.1 by adding the sortation level and OEL
example lines for Carrier Route Bound Printed Matter to read as
follows:]

[[Page 52525]]

------------------------------------------------------------------------
       Sortation level                        OEL example
------------------------------------------------------------------------

*                  *                  *                  *
                  *                  *                  *
Carrier Route--Bound Printed   * * * * * * * * * * * CAR-RT SORT**C-001
 Matter.

*                  *                  *                  *
                   *                  *                 *
------------------------------------------------------------------------

* * * * *
2.0  FORMAT
* * * * *

2.5  ZIP Code

    [Amend 2.5 by removing the second sentence.]
    [Amend the table in 2.5 by revising the entries for ADC and mixed
ADC sortation levels to read as follows:

----------------------------------------------------------------------------------------------------------------
           Sortation level                                Mail class                          Labeling list
----------------------------------------------------------------------------------------------------------------

*                  *                  *                  *                  *                  *
                                                        *
ADC..................................  First-Class Mail (except automation letters),     L004
                                        Periodicals (except automation letters),
                                        Standard Mail (except Presorted rate irregular
                                        and machinable parcels), Presorted Bound
                                        Printed Matter (except machinable parcels).
                                       Standard Mail irregular parcels.................  L603
Mixed ADC............................  First-Class Mail (except automation letters)....  L002, Column C
                                       Periodicals (except automation letters),          L004
                                        Standard Mail (except Presorted rate irregular
                                        and machinable parcels), Presorted Bound
                                        Printed Matter (except machinable parcels).
                                       Standard Mail irregular parcels.................  L604

*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

* * * * *

M014  Carrier Route Information Lines

* * * * *
2.0  FORMAT AND CONTENT
* * * * *

2.3  Route Code

* * * * *
    [Amend 2.3b by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
* * * * *

M020  Packages and Bundles

1.0  BASIC STANDARDS
* * * * *

1.4  Palletization

    [Amend 1.4 by removing all references to bundles to read as
follows:]
    Packages on pallets must be able to withstand normal transit and
handling without breakage or injury to USPS employees. Heavy-gauge
shrinkwrap over plastic banding, only shrinkwrap, or only banding
material is acceptable if the package can stay together during normal
processing. Except for packages of individually polywrapped pieces,
packages on BMC pallets must be shrinkwrapped and machinable on BMC
parcel sorters. Packages of individually polywrapped pieces may be
secured with banding material only. Machinability is determined by the
USPS. If used, banding material must be applied at least once around
the length and once around the girth; wire and metal strapping are
prohibited.
    [Redesignate 1.5 and 1.6 as 1.6 and 1.7 and add new 1.5 to read as
follows:]

1.5  Package Size--Bound Printed Matter

    Each physical package of Presorted Bound Printed Matter must meet
the minimum package size prescribed in M045 or M722. For Carrier Route
Bound Printed matter prepared in sacks, the ``last physical package''
to an individual carrier route destination may contain less than the
minimum package size and could consist of a single addressed piece,
provided that all other packages to that carrier route destination meet
the minimum package size and contain at least two addressed pieces, and
that the total group of pieces to that carrier route meets the Carrier
Route rate eligibility minimum in E712. Packages prepared on pallets
must meet the packaging requirements under M045
    [Amend the heading and the introductory phrase of redesignated 1.6
to read as follows:]

1.6  Package Size--Other Mail Classes

    For classes of mail other than Bound Printed Matter, an individual
physical package may be prepared with fewer than the minimum number of
pieces required by the standards for the rate claimed, without loss of
rate eligibility under either of these conditions:
* * * * *
    [Amend heading of 2.0 by replacing ``Standard Mail (A)'' with
``Standard Mail'' to read as follows:]
2.0  ADDITIONAL STANDARDS--FIRST-CLASS MAIL, PERIODICALS, STANDARD
MAIL, AND BOUND PRINTED MATTER FLATS

2.1  Cards and Letter-Size Pieces

    [Amend 2.1c and 2.1d by changing ``Standard Mail (A)'' to
``Standard Mail.'']
* * * * *
    [Amend 2.2 by revising the second sentence to read as follows:]

2.2  Flat-Size Pieces

    * * * Flat-size pieces must be prepared in packages except under
1.7. First-Class Mail automation flats prepared under the tray-based
preparation option in M820.2.3 are not prepared in packages.
* * * * *
    [Amend the heading of 3.0 by adding ``All,'' and amend the opening
text to read as follows:]
3.0  FACING SLIPS--ALL CARRIER ROUTE MAIL
    Facing slips used on any carrier route packages must show this
information:
* * * * *

M030  Containers

M031  Labels

* * * * *

[[Page 52526]]

2.0  ADDITIONAL STANDARDS--SACK LABELS

2.1  Specifications

    [Amend 2.1a to reflect changes in mail class names to read as
follows:]
    A sack label must meet these specifications:
    a. Color: white or manila for Priority Mail, First-Class Mail,
Standard Mail and Package Services mail; pink for Periodicals.
* * * * *
3.0  ADDITIONAL STANDARDS--TRAY LABELS PLACEMENT
* * * * *

3.2  Specifications

    [Amend 3.2a to change ``Standard Mail (A)'' to ``Standard Mail'' to
read as follows:]
    A tray label must meet these specifications:
    a. Color: White or manila for First-Class Mail and Standard Mail;
pink for Periodicals.
* * * * *
4.0  PALLET LABELS
* * * * *

4.2  Specifications

    [Amend 4.2 to reflect changes in class names to read as follows:]
    Pallet labels must be pink for Periodicals mail or white for
Standard Mail and Package Services. The pallet labels must measure at
least 8 inches by 11 inches in size.
* * * * *
    [Amend the last sentence of 4.7 (as it appeared in the final rule
published in 65 FR 50054 (August 16, 2000)) to add the word ``irregular
parcel'' in front of ``Bound Printed Matter,'' and to change
``processing category'' to ``''5D'' pallet level'' to read as follows:]

4.7  5-Digit, 5-Digit Carrier Routes, and 5-Digit Scheme Carrier
Routes Pallets

    All 5-digit carrier routes or 5-digit scheme carrier routes pallets
must show the words ``CARRIER ROUTES'' (or ``CR-RTS'') after the
processing category description on the content line under M045, M920,
M930, and M940. Five-digit pallets of irregular parcel Bound Printed
Matter that contain only carrier route rate mail must also show the
words ``CARRIER ROUTES'' (or ``CR-RTS'') after the ``5D'' pallet level
description on the contents line under M045.
    [Amend 4.8 (as it appeared in the final rule published in 65 FR
50054 (August 16, 2000)) by changing ``Standard Mail (A)'' to
``Standard Mail'' to read as follows:]

4.8  Automation Status

    All Periodicals and Standard Mail 5-digit, 5-digit scheme, 3-digit,
SCF, ADC, ASF, and BMC pallets must show ``BARCODED'' or ``BC'' on the
contents line if the pallet contains automation rate mail as provided
in M045, M920, M930, and M940. Except for machinable parcels, all
Periodicals and Standard Mail 5-digit, 5-digit scheme, 3-digit, SCF,
ADC, ASF, and BMC pallets must show ``NONBARCODED'' or ``NBC'' on the
contents line if the pallet contains Presorted rate mail under M045,
M920, M930, and M940. If a pallet contains copalletized automation rate
and Presorted rate mail, the separate ``BARCODED'' and ``NONBARCODED''
designations may be abbreviated ``BC/NBC.''
    [The following section was revised as M031.4.10 in the final rule
published in 65 FR 50054 (August 16, 2000). Subsequent revisions to the
DMM have redesignated this section as 4.9.]

4.9  Extraneous Information

* * * * *
    [Amend 4.9c to reflect changes in class names to read as follows:]
    c. It does not appear on or between the lines reserved for USPS
required information (blank lines are permitted). Exception: For
combined mailings of Standard Mail and Package Services machinable
parcels, mailer codes and extraneous information may appear between the
content line and the post office of mailing line.
* * * * *
    [The following section was added as M031.4.13 in the final rule
published in 65 FR 50054 (August 16, 2000). Subsequent revisions to the
DMM have redesignated this section as 4.12. Amend the title of 4.12 to
delete the phrase ``or Bundle'' to read as follows:]

4.12  Pallet Package Information

* * * * *
5.0  SECOND LINE CODES
    [Amend the chart in 5.0 to change ``Standard Mail (A)'' to
``Standard Mail,'' add ``First Class Mail'' and code ``FCM,'' and add
``Package Services'' and code ``PSVC'' to read as follows:]
    The codes shown below must be used as appropriate on Line 2 of
sack, tray, and pallet labels.

------------------------------------------------------------------------
              Content type                             Code
------------------------------------------------------------------------
Barcoded...............................  BC.
Barcoded and Nonbarcoded...............  BC/NBC.
Carrier Route..........................  C (type of route).
Carrier Routes.........................  CR-RTS (5-digit sack and pallet
                                          designation).
Digit..................................  D.
First-Class Mail.......................  FCM.
Flats..................................  FLTS.
General Delivery Unit..................  G.
Highway Contract Route.................  H.
Irregular Parcels......................  IRREG.
                                         (Periodicals, Standard Mail,
                                          and Package Services only).
Letters................................  LTRS.
Machinable Parcels.....................  MACH (Standard Mail and Package
                                          Services only).
Mixed..................................  MXD.
Mixed Machinable and Irregular Parcels.  MACH & IRREG (Standard Mail
                                          only).
Nonbarcoded............................  NON BC (sacks).
                                         NBC (pallets, and co-trayed or
                                          co-sacked mail under M910).
Package Services.......................  PSVC.
Parcels................................  PARCELS.
                                         (First-Class Mail and Package
                                          Services only).
Periodicals............................  PER (see 1.7).
                                         NEWS (see 1.7).
Post Office Box Section................  B.
Rural Route............................  R.

[[Page 52527]]

Scheme.................................  SCH.
                                         (Periodicals, Standard Mail,
                                          and (flats only) Bound Printed
                                          Matter 5-digit scheme carrier
                                          routes sacks and 5-digit
                                          scheme pallets only).
Standard Mail..........................  STD.
Working................................  WKG.
------------------------------------------------------------------------

M032  Barcoded Labels

1.0  BASIC STANDARDS--TRAY AND SACK LABELS

1.1  Use

    [Amend 1.1 by replacing ``Standard Mail (A)'' with ``Standard
Mail''; no other changes to text.]
* * * * *
    [Amend Exhibit 1.3a, 3-Digit Content Identifier Numbers, by
replacing headings ``STANDARD MAIL (A)'' with ``STANDARD MAIL,''
``STANDARD MAIL (B)'' with ``PACKAGE SERVICES,'' ``Special Standard
Mail'' with ``Media Mail,'' and making other changes in content line
information to read as follows:]

------------------------------------------------------------------------
                                                 Human-readable content
        Class and mailing              CIN                line
------------------------------------------------------------------------

      *         *         *         *         *         *         *
------------------------------------------------------------------------
          STANDARD MAIL
------------------------------------------------------------------------
      *         *         *         *         *         *         *
------------------------------------------------------------------------
Enhanced Carrier Route Irregular
 Parcels--Nonautomation
    car. rt. sacks--saturation..          599   STD IRREG WSS <SUP>1</SUP>
    car. rt. sacks--high density          600   STD IRREG WSH <SUP>1</SUP>
    car. rt. sacks--basic.......          601   STD IRREG LOT <SUP>1</SUP>
    5-digit carrier routes sacks          598   STD IRREG CR-RTS
STD Irregular Parcels--Presorted
    5-digit sacks...............          590   STD IRREG 5D
    3-digit sacks...............          591   STD IRREG 3D
    ADC sacks...................          592   STD IRREG ADC
    mixed ADC sacks.............          594   STD IRREG WKG
STD Machinable Parcels--
 Presorted
    5-digit sacks...............          670   STD MACH 5D
    ASF sacks...................          672   STD MACH ASF
    BMC sacks...................          673   STD MACH BMC
    mixed BMC sacks.............          674   STD MACH WKG
STD Machinable and Irregular
 Parcels--Presorted
    5-digit sacks...............          603   STD MACH & IRREG 5D
------------------------------------------------------------------------
      PACKAGE SERVICES MAIL
------------------------------------------------------------------------
Carrier Route Bound Printed
 Matter--Flats
    carrier route sacks.........          657   PSVC FLTS CR <SUP>1</SUP>
    5-digit scheme carrier                659   PSVC FLTS CR-RTS SCH
     routes sacks.
    5-digit carrier routes sacks          658   PSVC FLTS CR-RTS
Presorted Bound Printed Matter--
 Flats
    5-digit sacks...............          649   PSVC FLTS 5D NON BC
    3-digit sacks...............          650   PSVC FLTS 3D NON BC
    SCF sacks...................          654   PSVC FLTS SCF NON BC
    ADC sacks...................          651   PSVC FLTS ADC NON BC
    mixed ADC sacks.............          653   PSVC FLTS NON BC WKG
Carrier Route Bound Printed
 Matter--Irregular Parcels
    carrier route sacks.........          697   PSVC IRREG CR <SUP>1</SUP>
    5-digit carrier routes sacks          698   PSVC IRREG CR-RTS
Presorted Bound Printed Matter--
 Irregular Parcels
    5-digit sacks...............          690   PSVC IRREG 5D
    3-digit sacks...............          691   PSVC IRREG 3D
    SCF sacks...................          696   PSVC IRREG SCF
    ADC sacks...................          692   PSVC IRREG ADC
    mixed ADC sacks.............          694   PSVC IRREG WKG
Presorted Bound Printed Matter--
 Machinable Parcels
    5-digit sacks...............          680   PSVC MACH 5D
    ASF sacks...................          682   PSVC MACH ASF
    BMC sacks...................          683   PSVC MACH BMC
    mixed BMC sacks.............          684   PSVC MACH WKG
Carrier Route Bound Printed
 Matter--Machinable Parcels
    carrier route sacks.........          687   PSVC MACH CR <SUP>1</SUP>

[[Page 52528]]

Presorted Media Mail and
 Presorted Library Mail Flats--5-
 Digit and BMC
    5-digit sacks...............          649   PSVC FLTS 5D NON BC
    BMC sacks...................          652   PSVC FLTS BMC NON BC
Presorted Media Mail and
 Presorted Library Mail
 Irregular Parcels--5-Digit and
 BMC
    5-digit sacks...............          690   PSVC IRREG 5D
    BMC sacks...................          693   PSVC IRREG BMC
Presorted Media Mail and
 Presorted Library Mail
 Machinable Parcels--5-Digit and
 BMC
    5-digit sacks...............          680   PSVC MACH 5D
    BMC sacks...................          683   PSVC MACH BMC
Parcel Post Machinable Parcels
    5-digit sacks...............          680   PSVC MACH 5D
    ASF sacks...................          682   PSVC MACH ASF
    BMC sacks...................          683   PSVC MACH BMC
    mixed BMC sacks.............          684   PSVC MACH WKG
Parcel Post DSCF and DDU Rates
    5-digit sacks...............          688   PSVC PARCELS 5D
Combined PSVC Parcels
    5-digit sacks...............          688   PSVC PARCELS 5D
Combined STD & PSVC Machinable
 Parcels
    5-digit sacks...............          660   STD/PSVC MACH 5D
    ASF sacks...................          662   STD/PSVC MACH ASF
    BMC sacks...................          663   STD/PSVC MACH BMC
    mixed BMC sacks.............          664   STD/PSVC MACH WKG
------------------------------------------------------------------------

* * * * *
2.0 ADDITIONAL STANDARDS--BARCODED TRAY LABELS

2.1  Paper Stock, Size, and Color

    [Amend 2.1a to replace the class name ``Standard Mail (A)'' with
``Standard Mail''; no other changes to text.]
* * * * *
3.0 ADDITIONAL STANDARDS--BARCODED SACK LABELS
    [Amend 3.1a by replacing ``Standard Mail'' with ``Standard Mail and
Package Services mail''; no other changes to text.
* * * * *

M033  Sacks and Trays

1.0  BASIC STANDARDS
* * * * *

1.2  Equipment

    [Amend 1.2a and 1.2f by replacing ``Standard Mail (A)'' with
``Standard Mail''; and by no other changes to text and amend 1.2a by
adding a second sentence to read as follows:]
    a. First-Class Mail flat-size pieces must be prepared in USPS flat
trays with lids. The lids to these flat trays must be placed green side
up.
    [Amend the heading of 2.0 by replacing ``Standard Mail (A)'' with
``Standard Mail'' to read as follows:]
2.0  FIRST-CLASS MAIL, PERIODICALS, AND STANDARD MAIL
* * * * *

2.2  Flat Tray Preparation (First-Class Mail Only)

    [Amend 2.2 by adding new f through h to read as follows:]
    All flat tray preparation is subject to these standards:
* * * * *
    f. For automation rate mailings prepared under the optional tray-
based preparation rules in M820, one less-than-full overflow tray may
be prepared for a presort destination when the total number of pieces
for that destination meets the minimum for preparation of the tray
level under M820, and one or more full trays (see M011) for that
destination are also prepared.
    g. For automation rate mailings prepared under the optional tray-
based preparation rules in M820, when the total number of pieces for a
presort destination meets or exceeds the minimum number of pieces
required to prepare a tray for that destination, but the total volume
does not physically fill a single tray, the mail for that presort
destination may be prepared in a less-than-full tray.
    h. Pieces prepared as automation flats under the tray-based
preparation option in M820 do not have to be grouped by 3-digit ZIP
Code prefix in ADC trays or by ADC in mixed ADC trays, if the mailing
is prepared using an MLOCR/barcode sorter and standardized
documentation is submitted.
* * * * *

M040  Pallets

M041  General Standards

* * * * *
    [M041.5.0 and 6.0 were amended in the amended final rule published
in 65 FR 48385 (August 8, 2000) and in the final rule published in 65
FR 50054 (August 16, 2000). The language in this proposed rule reflects
those amendments.]
5.0  PREPARATION

5.1  Presort

    [Amend 5.1 to change the class name from ``Standard Mail (A)'' to
``Standard Mail.'']

5.2  Required Preparation

    [Amend 5.2 to change the class name from ``Standard Mail (A)'' to
``Standard Mail'' to read as follows:]
    These standards apply to:
    a. Periodicals, Standard Mail and Package Services (other than
Parcel Post 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, Standard Mail, or Package Services mail in
packages or sacks, or 500 pounds of parcels, or six layers of
Periodicals or Standard Mail letter trays. For packages of Periodicals
flats and irregular parcels on pallets that are prepared under the
standards for package reallocation to protect the SCF pallet
(M045.5.0), not all mail for a required 5-digit scheme carrier routes,
5-digit scheme, 5-digit carrier routes, or 5-digit pallet or for an
optional merged

[[Continued on page 52529]]